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Type: Prelims Only

  • UN Framework Convention on Climate Change (UNFCCC)

    Why in the News?

    The UN Framework Convention on Climate Change (UNFCCC) negotiations are facing a credibility crisis, as years of underperformance, weak accountability, and neglect of developing countries’ concerns have created growing frustration.

    About the UN Framework Convention on Climate Change (UNFCCC):

    • Overview: The UNFCCC is an international treaty adopted at the 1992 Rio Earth Summit to address climate change by stabilizing greenhouse gas (GHG) concentrations in the atmosphere.
    • Entry into Force: The Convention entered into force on 21 March 1994 and currently has 197 Parties, including all UN member states.
    • Governing Body – COP: The Conference of the Parties (COP) is the supreme decision-making body under the UNFCCC, which meets annually to assess progress and set new targets.
    • Consensus-Based Process: The Convention operates on the principle of consensus, meaning all Parties must agree for a decision to be adopted.
    • Article 2 Objective: The objective of the UNFCCC, as per Article 2, is to stabilize GHG levels at a point that prevents dangerous anthropogenic interference with the climate system.
    • Key Agreements: The UNFCCC framework led to major global climate agreements such as the Kyoto Protocol (1997) and the Paris Agreement (2015).
    • Institutional Structure: It has three main institutional bodies:
      1. SBSTA: Subsidiary Body for Scientific and Technological Advice
      2. SBI: Subsidiary Body for Implementation
      3. UNFCCC Secretariat: Headquartered in Bonn, Germany
    • Party Classifications:
      • Annex I: Developed countries (OECD + Economies in Transition); Obligated to reduce GHG emissions and submit regular reports.
      • Annex II: Subset of Annex I (OECD members); Required to provide financial and technological support to developing countries.
      • Non-Annex I: Developing countries; No binding emission targets but eligible for support and encouraged to act voluntarily.
      • LDCs (Least Developed Countries): Low-income, highly vulnerable nations; Receive priority support under UNFCCC for adaptation and capacity building.

    India and the UNFCCC:

    • Ratification: India ratified the UNFCCC in 1993 and has participated actively in all COP meetings since then.
    • Party Classification: India is classified as a Non- Annex I Party, meaning it has no binding emission reduction targets under the Convention.
    • Paris Agreement Commitments: Under the Paris Agreement (2015), India submitted Nationally Determined Contributions (NDCs), including:
      • Reducing emissions intensity of GDP by 45% by 2030 from 2005 levels
      • Achieving 50% cumulative electric power capacity from non-fossil fuel sources by 2030
    • Climate Diplomacy:
      • India advocates the principle of Common But Differentiated Responsibilities and Respective Capabilities (CBDR–RC) in all negotiations.
      • India co-founded the International Solar Alliance (ISA) and launched the LiFE Movement (Lifestyle for Environment) to promote sustainable lifestyles.
      • India has opposed unilateral trade measures such as the EU’s Carbon Border Adjustment Mechanism (CBAM) at multiple climate forums.

    Issues with the UNFCCC Process:

    • Weak Enforcement: The process lacks enforcement mechanisms; countries that fail to meet commitments face no penalties.
    • Consensus Delays: The consensus-based approach often leads to delays and diluted agreements due to the ability of a few nations to block progress.
    • Unmet Commitments: Developed countries have not fulfilled the promised $100 billion per year in climate finance, which was due by 2020.
    • Neglected Developing Country Needs: Critical needs for adaptation finance, capacity building, and technology transfer remain largely unmet for developing nations.
    • Controversial Host Nations: The selection of host countries (e.g., UAE for COP28 and Azerbaijan for COP29) has drawn criticism due to their fossil fuel dependence.
    • Demand for Reforms: At the Bonn Climate Conference (2024), developing countries called for reforms such as:
      • Shifting to majority-based decision-making
      • Imposing limits on fossil fuel industry participation in climate talks
    [UPSC 2016] With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct?

    1. The Agreement was signed by all the member countries of the UN and it will go into effect in 2017.

    2. The Agreement aims to limit the greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2°C or even 1.5°C above pre-industrial levels.

    3. Developed countries acknowledged their historical responsibility in global warming and committed to donate $1000 billion a year from 2020 to help developing countries to cope with climate change.

    Select the correct answer using the code given below:

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

     

  • Carbon Border Adjustment Mechanisms (CBAM)

    Why in the News?

    BRICS group has condemned and rejected the European Union’s Carbon Border Adjustment Mechanism (CBAM) and other similar climate-linked trade measures.

    What Is the Carbon Border Adjustment Mechanism (CBAM)?

    • Overview: It is a climate-related import duty imposed by the European Union on goods whose production involves higher carbon emissions than what is permitted in the EU.
    • Policy Framework: CBAM is part of the EU’s “Fit for 55” climate package, aimed at reducing greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels.
    • Scope of Coverage: The policy requires importers to declare the volume and embedded carbon emissions of certain goods, such as steel, aluminium, cement, fertiliser, hydrogen, and electricity.
    • Compliance Mechanism: To offset these emissions, EU importers must surrender CBAM certificates, priced based on the EU Emissions Trading System (ETS).
    • Carbon Price Adjustment: If a non-EU producer has already paid a carbon price in their country, that amount can be deducted from the CBAM charge.
    • Implementation Timeline: The transitional phase of CBAM is underway from 2023 to 2025, and the definitive regime begins on January 1, 2026.

    Issues with CBAM:

    • Trade Discrimination Concerns: Developing countries, including India and China, argue that CBAM imposes unilateral, punitive, and discriminatory trade restrictions under the guise of environmental protection.
    • Violation of Climate Agreements: It is viewed as a violation of Paris Agreement, which upholds the principle of common but differentiated responsibilities.
    • Neglect of Historical Emissions: Countries in the Global South contend that climate-related trade tools like CBAM ignore historical emissions and disproportionately impact countries still reliant on carbon-intensive development.

    Implications of CBAM for India:

    • Impact on Exports: Indian exports, particularly in iron, steel, aluminium, and cement, will face additional scrutiny and carbon charges under CBAM, reducing their competitiveness.
    • Carbon Taxation Timeline: From January 1, 2026, carbon taxes will be levied on each shipment to the EU in specific sectors, ranging from 19.8% to 52.7% in potential carbon levies.
    • High Carbon Intensity Risk: India’s high carbon intensity, primarily due to its 75% dependence on coal, makes its products more vulnerable to CBAM tariffs.
    [UPSC 2023] Consider the following statements:

    Statement-I: Carbon markets are likely to be one of the most widespread tools in the fight against climate change.

    Statement-II: Carbon markets transfer resources from the private sector to the State.

    Which one of the following is correct in respect of the above statements?

    Options: (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I ** (c) Statement-I is correct but Statement-II is incorrect (d) Statement-I is incorrect but Statement-II is correct

     

  • High Security Registration Plates (HSRPs)

    Why in the News?

    Maharashtra’s transport department has now made HSRP number plate mandatory with a final deadline set for 15 August.

    What is a High-Security Registration Plate (HSRP)?  

    • About: It is a standardised, tamper-proof vehicle number plate mandated for all vehicles in India.
    • Launch: It was officially introduced in 2001 under Rule 50 of the Central Motor Vehicle Rules (CMVR), 1989, and later made mandatory by the Supreme Court in 2012.
    • Composition: The plate is made of aluminium and includes several embedded security features to prevent counterfeiting and enhance traceability.
    • Key Features:
      • Each HSRP is fitted with a non-removable snap lock that prevents tampering or re-use.
      • The plate contains a laser-etched 10-digit unique identification number, linking it to the vehicle’s registration details.
      • A chromium-based hologram of the Ashoka Chakra is embedded to authenticate the plate and prevent duplication.
      • A retro-reflective film improves night-time visibility and supports automated detection systems.
      • A colour-coded third registration sticker is affixed to the vehicle’s windshield displaying key information like engine number, chassis number, and registration number.
      • The plate is embedded with RFID (Radio Frequency Identification) technology, allowing authorities to digitally track the vehicle for enforcement and traffic management purposes.

    Compliance and Enforcement in India:

    • HSRPs are mandatory for all vehicles registered after April 1, 2019, as per Ministry of Road Transport and Highways (MoRTH) guidelines.
    • Vehicles registered before April 1, 2019 must retrofitted with HSRPs by deadlines set by respective state governments.
    • The Supreme Court and Ministry of Road Transport have directed states to enforce HSRP installation strictly to enhance road safety and curb vehicle-related crimes.
    • In case of non-compliance, vehicle owners are liable for a fine of â‚č1,000 under Rule 50 of CMVR and Section 177 of the Motor Vehicles Act, 1988.
    • Transport departments across states, including Maharashtra, are conducting daily enforcement drives, issuing challans and directing retrofitting at authorised centres.
    • Several states have authorised zone-wise vendors to streamline installation, and vehicle owners must pre-book appointments online for HSRP fitting.

  • PARAKH Survey reveals deficits in Student Learning

    Why in the News?

    The Ministry of Education recently released the PARAKH Rashtriya Sarvekshan (RS) Report, an extensive nationwide student performance assessment for Grades 3, 6, and 9.

    About PARAKH:

    • Full Form: PARAKH stands for Performance Assessment, Review, and Analysis of Knowledge for Holistic Development.
    • Establishment: It was established in 2023 as an autonomous institution under the National Council of Educational Research and Training (NCERT).
    • Vision and Role: PARAKH functions as India’s national assessment regulator, aiming to standardize school-level assessments across states and boards.
    • Policy Alignment: The initiative is aligned with the National Education Policy (NEP) 2020, which promotes competency-based, equitable, and inclusive learning.
    • Core Objective: Its main objective is to develop norms, standards, and guidelines for assessing learning outcomes at the national level.
    • Key Functions:
      • Standardization of Boards: PARAKH seeks to ensure equivalence in academic standards across various state and central school boards.
      • Assessment Focus: It designs and implements competency-based assessments, moving away from rote learning.
      • Progress Tracking: The unit is responsible for developing Holistic Progress Cards across the Foundational, Preparatory, Middle, and Secondary stages.
      • Survey Execution: It conducts Large-Scale Achievement Surveys, such as the PARAKH Rashtriya Sarvekshan (RS) (formerly known as the National Achievement Survey (NAS) launched in 2021) to track student learning outcomes at scale.

    Key Highlights of the PARAKH Rashtriya Sarvekshan (RS) Report – 2024:

    • Scale of the Survey: Assessed over 21.15 lakh students from Grades 3, 6, and 9, across 74,229 schools in 781 districts.
    • Top performers: Punjab, Kerala, Himachal Pradesh, Chandigarh, and Dadra & Nagar Haveli and Daman & Diu; low-performing districts were concentrated in Meghalaya, Jharkhand, and Arunachal Pradesh.
      • In Grade 3, around 60–70% of students demonstrated basic reading, vocabulary, and early math skills, though many struggled with geometry and spatial reasoning.
      • In Grade 6, fewer than 40% could solve real-life arithmetic problems or understand fractions, indicating gaps in conceptual understanding and application.
      • In Grade 9, only 28–31% applied percentages or understood number systems; less than half grasped core civic and scientific concepts such as the Constitution, biodiversity, or electricity.
    [UPSC 2017]  With reference to ‘National Skills Qualification Framework (NSQF)’, which of the statements given below is/are correct?

    1. Under NSQF, a learner can acquire the certification for competency only through formal learning. 2. An outcome expected from the implementation of NSQF is the mobility between vocational and general education.

    Select the correct answer using the code given below:

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

     

  • Rare Great Hornbill sighted in Kerala

    Why in the News?

    The Great Hornbill (Malamuzhakki Vezhambal)—Kerala’s State bird and a symbol of forest biodiversity—was spotted far outside its usual habitat.

    Rare Great Hornbill sighted in Kerala

    About the Great Hornbill (Malamuzhakki Vezhambal)

    • Overview: The Great Hornbill (Buceros bicornis) is the largest hornbill species found in India.
    • Attributes: It is known for its striking yellow casque on the upper mandible, which is hollow and used in vocalisation and courtship.
    • Official Recognition: It is the State Bird of Kerala (as well as Arunachal Pradesh) and is revered in many indigenous cultures for its majestic appearance.
    • Conservation Status: It is listed as Endangered by the IUCN and is protected under Schedule I of the Indian Wildlife (Protection) Act, 1972.
    • Habitat: It primarily inhabit evergreen and moist deciduous forests, especially in the Western Ghats, the Himalayan foothills, and Northeast India.
    • Prey Behaviour: They are frugivorous, feeding mainly on figs and other forest fruits, but they may occasionally consume small mammals, birds, and insects.
    • Ecological Significance:  They are known as ‘forest engineers’ or ‘farmers of the forest’, they play a key role in seed dispersal of tropical trees, indicating the health and balance of their forest ecosystems.
    [UPSC 2016] In which of the following regions of India are you most likely to come across the ‘Great Indian Hornbill’ in its natural habitat? Options: (a) Sand deserts of northwest India (b) Higher Himalayas of Jammu and Kashmir (c) Salt marshes of western Gujarat (d) Western Ghats *

     

  • RECLAIM Framework for Inclusive Mine Closure

    Why in the News?

    The Ministry of Coal has launched RECLAIM Framework— A Community Engagement and Development Framework for Mine Closure and Repurposing.

    About the RECLAIM Framework:

    • Launch: The Ministry of Coal has launched the RECLAIM framework to guide inclusive and sustainable coal mine closures in India.
    • Developed By: The framework was developed by the Coal Controller Organisation in collaboration with the Heartfulness Institute.
    • Objective: It aims to ensure a just, inclusive, and locally relevant transition for communities affected by mine closures.
    • Inclusivity Measures: The framework places special emphasis on gender equity, the inclusion of vulnerable groups, and alignment with Panchayati Raj Institutions to enhance accountability and relevance.

    Key Features of the Framework:

    • Guidelines: Mine closure guidelines were introduced in 2009 and revised in 2013 and 2020 to improve environmental safety and social accountability.
    • Community Engagement: The framework promotes community-centric planning by actively involving local stakeholders in mine closure processes.
    • Equity and Representation: It prioritizes the inclusion of women and marginalized groups to ensure that benefits are distributed equitably.
    • Institutional Convergence: RECLAIM aligns mine closure planning with existing institutional structures, especially Panchayati Raj Institutions and local governance systems.
    • Phased Implementation: The framework follows three phases:
      • Pre-Closure: Includes needs assessments and capacity building.
      • Closure: Involves participatory execution of closure plans.
      • Post-Closure: Focuses on monitoring, livelihood restoration, and asset repurposing.
    • Support Tools: RECLAIM is backed by field-tested tools, templates, and methodologies tailored to the Indian mining context.
    • Broader Impact: It supports the achievement of Sustainable Development Goals (SDGs) and can be replicated in other resource-intensive sectors and states.

    Challenges in Coal Mine Closure in India:

    • Policy–Practice Gap: Despite guidelines issued in 2009, only three coal mines have been formally closed as of 2024.
    • Low Compliance: Out of 299 non-operational coal mines, only eight have applied for formal closure, while the rest remain unscientifically abandoned.
    • Environmental Risks: Abandoned mines lead to methane emissions, ecological degradation, increased accident risks, and illegal mining.
    • Community Displacement: Unsustainable mining has caused unemployment and migration, reducing community engagement during closure planning.
    • Land Return Issues: India lacks a clear policy for returning post-mining land to original owners or communities.
    • Policy Gaps in Draft Bill: The 2024 Draft Coal Bearing Areas (CBA) Amendment Bill proposes land return but lacks clarity on enforcement mechanisms.
    • Financial Barriers: High escrow fund requirements—â‚č14 lakh per hectare for opencast mines—discourage mine operators from initiating closure processes.

     

    [UPSC 2019] Consider the following statements:

    1. The coal sector was nationalized by the Government of India under Indira Gandhi.
    2. Now, coal blocks are allocated on lottery basis.
    3. Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-sufficient in coal production.

    Which of the statements given above is/are correct?

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

     

  • 125th Birth Anniversary of Syama Prasad Mookerjee

    Why in the News?

    Prime Minister Modi has paid respectful tributes to eminent thinker and educationist Dr. Shyama Prasad Mukherjee on his 125th birth anniversary.

    125th Birth Anniversary of Syama Prasad Mookerjee

    About Syama Prasad Mookerjee (1901-1953):

    • Early life: He was born on July 6, 1901, in Kolkata, West Bengal.
    • Academics: He studied at Presidency College and the University of Calcutta, where he excelled academically.
    • Professional Career: He became a barrister after being called to the English Bar at Lincoln’s Inn, London. At the age of 33, he was appointed Vice-Chancellor of Calcutta University, one of the youngest to hold the post.
    • Association with Freedom Movement: He began his political journey with the Indian National Congress. Later, he joined the Hindu Mahasabha, becoming its president.
    • Demise: He died in 1953, while in custody in Jammu and Kashmir, under mysterious circumstances that remain controversial to this day.

    His Contributions:

    • Role in Pre-Independence Politics:
      • He served as the Finance Minister of Bengal under British rule.
      • He resigned in 1942, protesting British policies during the Quit India Movement.
      • He became a strong voice against British repression and for Indian self-rule.
    • Advocacy for Partition of Bengal:
      • He advocated the partition of Bengal to safeguard Hindu interests during the run-up to Partition.
      • His efforts contributed to the creation of a separate West Bengal within the Indian Union.
    • Minister in Nehru’s Cabinet:
      • After independence, he served as India’s first Minister for Industry and Supply in Jawaharlal Nehru’s cabinet.
      • In 1950, he resigned from the cabinet in protest against the Nehru-Liaquat Pact.
      • He believed the pact failed to protect the Hindu minorities in East Bengal (now Bangladesh).
    • Founding of Bharatiya Jana Sangh (1951):
      • In 1951, Mookerjee founded the Bharatiya Jana Sangh with ideological support from the RSS.
      • The party aimed to present a nationalist alternative to the Congress Party.
    • Opposition to Article 370:
      • Mookerjee strongly opposed Article 370, which gave special status to Jammu and Kashmir.
      • He believed the article promoted separatism and weakened national integration.
      • He famously declared that- “One country cannot have two constitutions, two prime ministers, and two flags.”
    • Legacy:
      • Mookerjee’s thoughts continue to influence the ideological foundation and policies of the far right political parties.
      • He is remembered as a champion of national unity, constitutional equality, and strong central integration.
    [UPSC 2024] Consider the following pairs:

    Party: Its Leader

    1. Bharatiya Jana Sangh : Dr. Shyama Prasad Mukherjee 2. Socialist Party : C. Rajagopalachari 3. Congress for Democracy : Jagjivan Ram 4. Swatantra Party : Acharya Narendra Dev How many of the above are correctly matched?

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

     

  • Vera C Rubin Observatory 

    Why in the News?

    The Vera C. Rubin Observatory has recently begun a 10-year project to study dark matter and dark energy using a 3,200-megapixel camera (of the Simonyi Survey Telescope) from its site in the Chilean Andes.

    Vera C Rubin Observatory 

    About Vera C. Rubin Observatory:

    • Location: The Vera C. Rubin Observatory is situated on Cerro PachĂłn in the Chilean Andes, at an altitude of 8,684 feet.
    • Naming: It is named after Vera C. Rubin, the astronomer who first provided robust observational evidence for the existence of dark matter in the 1970s.
    • Survey Duration: The observatory will carry out a 10-year continuous survey of the entire southern sky.
    • Data Volume: It is designed to collect approximately 20 terabytes of astronomical data per night.
    • Observation System: The telescope operates using an automated scripting system that selects observation targets dynamically, rather than through manual scheduling.
    • Objectives: Its key goals include understanding the formation of galaxies, identifying a possible ninth planet, detecting potentially hazardous asteroids, and studying the nature of dark matter and dark energy.

    Key Features:

    • Telescope Design: The observatory uses the Simonyi Survey Telescope, which features a three-mirror optical system for wide-field imaging.
    • How big is it: It has a field of view of 9.6 square degrees (compared to 0.04 sq. deg. for Hubble and 0.11 sq. deg. for James Webb), a 3,200-megapixel camera (vs. Hubble’s ~1.0 MP).
    • Field of View: It can capture a field of view equivalent to 40 full Moons in a single exposure — far wider than traditional space telescopes.
    • Spectral Filters: The camera includes six optical filters that capture data from across the electromagnetic spectrum, including ultraviolet and infrared light.
    • Slewing Speed: The telescope is the fastest-moving large telescope, capable of repositioning and stabilizing in just 5 seconds.
    • Imaging Frequency: It can take up to 1,000 images per night, allowing it to scan the entire sky every three nights.
    • Change Detection: Its automated software compares new and old images to detect changes, issuing up to 10 million alerts per night for transient astronomical events.

    Breakthrough Discoveries:

    • First Light: The observatory released its first test images on June 23, 2025.
    • Initial Discoveries: Within 10 hours of collecting engineering data, it identified 2,104 new asteroids, including 7 near-Earth objects (NEOs).
    • Expected Discoveries: Over the full 10-year mission, it is projected to discover over 5 million asteroids and around 100,000 NEOs.
    • Impact on Database: These findings would triple the current global inventory of known asteroids.
    • Universe Mapping: The observatory will produce the most detailed map of the large-scale structure of the universe to date.
    • Dark Matter Study: The data will support analysis of dark matter, which constitutes 27% of the universe’s composition.
    • Dark Energy Study: It will also help scientists understand dark energy, which makes up 68% of the universe and drives cosmic expansion.
    • Visible Matter Context: Only 5% of the universe is composed of visible matter, making the observatory’s data essential to studying the remaining 95%.
    [UPSC 2002] The world’s highest ground-based telescopic observatory is located in:

    Options: (a) Colombia (b) India (c) Nepal (d) Switzerland

     

  • Operation Med Max

    Why in the News?

    The Narcotics Control Bureau (NCB) has busted a global drug network spanning four continents through secret Operation Med Max.

    Back2Basics: Narcotics Control Bureau (NCB)

    • Institutional Mandate: The NCB is India’s central drug law enforcement and intelligence agency, functioning under the Ministry of Home Affairs.
    • Establishment: It was established on 14th November 1985 under the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985.
    • Role: The agency works closely with Customs, State Police, Intelligence Bureau, and international agencies like Interpol and the US DEA.
    • International Treaty Compliance: NCB is responsible for monitoring India’s compliance with global drug control conventions and facilitating cooperation with foreign drug enforcement bodies.
    • Operational Network: It maintains zonal offices nationwide and is staffed by officers from IPS, IRS, paramilitary forces, and direct recruits.
    • Financial Surveillance Role: The NCB is a member of the Economic Intelligence Council, reflecting its role in tracking financial transactions linked to drug crimes.
    • Digital Intelligence Focus: The agency is now expanding into cyber surveillance, targeting darknet networks, crypto-based payments, and online narcotics trade.

    About Operation Med Max:

    • Launch: It was initiated by the Narcotics Control Bureau (NCB) in May 2024, beginning with the interception of a car in Delhi, it seized 3.7 kg of Tramadol tablets.
    • Uncovering a Global Syndicate: Investigations revealed a transnational drug syndicate using encrypted apps, drop shipping, and cryptocurrency payments to smuggle controlled pharmaceutical drugs across four continents and over 10 countries.
    • Global Ramifications: The probe triggered international enforcement actions, including the arrest of a money launderer in Alabama (USA), closure of an illegal pill factory in Australia, and identification of a UAE-based drug kingpin.

    Also in News: Operation MELON

    • Overview: It was a coordinated crackdown on India’s top-rated darknet drug vendor, alias “Ketamelon”, active for over two years.
    • Drug and Crypto Seizures: The raid led to the seizure of 1,100 LSD blots, 131 grams of Ketamine, and â‚č70 lakh worth of cryptocurrency, stored in a hardware wallet.
    • Darknet Threat: Ketamelon was classified as a Level 4 darknet vendor, the highest possible rank, underscoring the growing cyber-narcotics threat and NCB’s technical capacity to counter it.
    [UPSC 2024] Consider the following activities:

    1. Identification of narcotics on passengers at airports or in aircraft

    2. Monitoring of precipitation

    3. Tracking the migration of animals

    In how many of the above activities can the radars be used?

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

     

  • Invisible Exports of India

    Why in the News?

    As of 2024–25, India’s “invisibles” trade—comprising services exports and private money transfers—has not only surpassed its merchandise exports but also emerged as a key stabiliser of the current account deficit.

    What are Invisible Exports (in India’s context)?

    • What is it: Invisible exports refer to international trade in services and income flows that do not involve physical goods crossing borders. These transactions are digital or financial, rather than visible at ports or airports.
    • Types of Services Included: They comprise a wide range of service-based exports such as IT services, financial consulting, legal and accounting services, R&D, and BPO operations.
    • Inclusion of Remittances: Private remittances—money sent home by Indians working abroad—are counted as part of invisibles in India’s Balance of Payments (BoP).
    • BoP Classification: These transactions are recorded under the “Current Account” of the BoP, specifically in the sub-categories of services, primary income, and secondary income.
    • Characteristics: Unlike physical exports, invisible exports do not require shipping, face fewer trade barriers, and rely heavily on skilled human capital.
    • Leading Examples: India’s key invisible exports include software and IT-enabled services (by firms like Infosys, TCS, Wipro), Global Capability Centers, financial and legal services, and education, tourism, and medical services.
    • Role of Migrant Remittances: Remittances from NRIs and migrant workers play a crucial role and are one of the largest components of India’s invisible receipts.

    Their Contribution in Trade

    • Higher Value than Goods Exports: In 2024–25, India’s gross invisible receipts reached $576.5 billion, surpassing merchandise exports of $441.8 billion. Services alone brought in $387.5 billion, a major leap from $26.9 billion in 2003–04, while remittances added $135.4 billion.
    • Buffer Against Trade Deficits: While the merchandise trade deficit stood at $287.2 billion, a net invisible surplus of $263.8 billion helped reduce the overall current account deficit to just $23.4 billion, providing crucial stability.
    • Resilience Across Global Crises: Invisible exports remained strong during major disruptions like the 2008 financial crisis, COVID-19 pandemic, and ongoing geopolitical tensions, showcasing greater resilience than merchandise trade.
    • Human Capital-Driven Growth: Services exports are powered by India’s skilled workforce, not physical infrastructure. India thrives as the “office of the world”, moving beyond the traditional “back office” label.
    • Less Policy Dependence: Growth in invisible exports occurred largely without heavy government incentives or trade agreements. India still lacks strong service-sector provisions in its major trade deals.
    [UPSC 2006] Assertion (A): Balance of Payments represents a better picture of a country’s economic transactions with the rest of the world than the Balance of Trade.

    Reason (R): Balance of Payments takes into account the exchange of both visible and invisible items whereas Balance of Trade does not.

    Options: (a) Both A and R are individually true and R is the correct explanation of A **  (b) Both A and R are individually true and R is not the correct explanation of A (c) A is true but R is false (d) A is false but R is true