In News:

On January 16, 2025, India marks nine years of Startup India, a transformative journey that began in 2016. Designated as National Startup Day, this occasion celebrates the nation’s strides in fostering a robust and inclusive entrepreneurial ecosystem.

Current Status (as of Jan 2025)

 Over 1.59 lakh startups recognized by DPIIT, making India the 3rd largest startup ecosystem globally.

• More than 100 unicorns (startups valued over $1 billion).
• Key hubs: Bengaluru, Hyderabad, Mumbai, Delhi-NCR; growing contribution from smaller cities.

Key Sectors

• Major sectors: Fintech, Edtech, Health-tech, E-commerce.
• Notable companies: Zomato, Nykaa, Ola exemplify India's shift from job seekers to job creators.

Key Milestones (2016–2025)

• Startups grew from around 500 in 2016 to 1.59 lakh in 2025.
• 73,151 startups with at least one-woman director as of 2024, showcasing rise in women entrepreneurship.
• Over 16.6 lakh jobs created by DPIIT-recognized startups by 2024.

Core Features of Startup India

• Ease of Doing Business: Simplified compliance, self-certification, and single-window clearances.
• Tax Benefits: Three-year tax exemptions for eligible startups.
• Funding Support: ?10,000 crore Fund of Funds for Startups (FFS) supports early-stage funding.
• Sector-Specific Policies: Policies focusing on sectors like biotechnology, agriculture, and renewable energy.

Industry-wise Jobs Created

• IT Services: 2.04 lakh jobs.
• Healthcare & Lifesciences: 1.47 lakh jobs.
• Professional & Commercial Services: 94,000 jobs.
• Total direct jobs created: 16.6 lakh (as of Oct 2024).

Flagship Schemes

• Startup India Seed Fund Scheme (SISFS).
• Credit Guarantee Scheme for Startups (CGSS).
• Fund of Funds for Startups (FFS) Scheme.

Other Key Initiatives

• Capacity Building & Handholding: Workshops for regional ecosystems, especially in non-metro cities.
• Outreach & Awareness: Initiatives to facilitate funding, incubation, and mentorship opportunities.
• Ecosystem Development: National-level events like Startup Mahakumbh to bring together key stakeholders.
• International Linkages: India’s G20 Presidency institutionalized Startup20 to enhance global collaborations.

BHASKAR Platform (Launched in Sept 2024)

• Objective: Centralize and streamline interactions within the entrepreneurial ecosystem.
• Key Features:
  • Networking: Connects startups, investors, mentors, and government bodies.
  • Resources: Provides quick access to essential tools and knowledge for scaling startups.
  • Global Outreach: Promotes India as a global innovation hub.

Startup Mahakumbh

• 2024 Edition: Hosted 1,300 exhibitors, 48,000 visitors, and 392 speakers, including unicorn founders and policymakers.
• 2025 Edition (3-5 April, New Delhi): Theme - “Startup India @ 2047 – Unfolding the Bharat Story.”

In News:

Union Minister of Commerce & Industry Shri Piyush Goyal launches Bharat Cleantech Manufacturing Platform.

Bharat Cleantech Manufacturing Platform:

• Objective: Strengthen India's cleantech value chains, especially in solar, wind, hydrogen, and battery storage sectors.
• Platform Features:
  • Aims to promote collaboration, co-innovation, and knowledge-sharing among Indian firms.
  • Focus on scaling up manufacturing, sharing ideas, technologies, and resources.
  • Acts as a financing platform for the cleantech sector.
  • Designed to position India as a global leader in sustainability and cleantech innovation.

India's Clean Energy Commitment:

• Target: 500 GW of clean energy capacity by 2030.
• India has been a front-runner in fulfilling its Nationally Determined Contributions (NDCs) under the Paris Agreement and UNFCCC.
• Early Achievement: India achieved its 2022 renewable energy target of 200 GW, 8 years ahead of schedule.
• Largest Interconnected Grid: India boasts the world’s largest interconnected power grid, enhancing its renewable energy distribution capacity.
• Gujarat is a pioneer in solar power adoption in India.

Union Minister Shri Piyush Goyal's Views:

• On Product-Linked Incentives (PLIs):
  • PLIs and subsidies are seen as short-term aids; long-term growth of the clean energy sector depends on it becoming self-sustaining.
  • Urged Indian firms to innovate and scale up manufacturing within the country.
• On Clean Energy and Sustainability:
  • Stressed the importance of innovation and collaboration to achieve sustainability goals.
  • India aims to attract international investors by creating a compelling business case for cleantech investments.
• 3S Approach (Speed, Scale, and Skill): Key to implementing India's renewable energy program, emphasizing rapid deployment, large-scale adoption, and skill development in the sector.

Bharat Climate Forum 2025:

• Event Objective: A platform for policymakers, industry leaders, and stakeholders to discuss climate action, clean energy, and India’s role in global climate goals.
• Key Focus Areas:
  • Aligning India’s clean energy initiatives with global climate goals (UNFCCC, Paris Agreement).
  • Emphasizing India’s early achievements in clean energy adoption.
  • Promoting sustainable development and clean energy solutions.

India's Performance in Renewable Energy:

• India’s progress has been commendable in meeting its climate targets and setting up clean energy capacity ahead of schedule.
• The government’s initiatives, led by Prime Minister Narendra Modi, have made solar power affordable and scalable through transparency in auctions, competitive bidding, and speed in project implementation.

In News:

The World Economic Forum's latest "Future of Jobs Report 2025" has highlighted significant trends and predictions for the global labor market by 2030.

Key Highlights:

Fastest Growing Jobs by 2030

The report identified the following jobs as the fastest-growing by 2030:

• Big Data Specialists
• FinTech Engineers
• AI and Machine Learning Specialists
• Software and Applications Developers
• Security Management Specialists
• Data Warehousing Specialists
• Autonomous and Electric Vehicle Specialists
• UI/UX Designers
• Delivery Drivers
• Internet of Things (IoT) Specialists

Job Disruption and Creation

• 22% of jobs globally will be disrupted by 2030 due to automation and technological advancements.
• 170 million new jobs are expected to be created, resulting in a net increase of 78 million jobs.
• Technological shifts, economic uncertainty, and demographic changes are expected to play significant roles in this transformation.

Skills in High Demand

• AI, Big Data, Cybersecurity: Skills related to artificial intelligence and big data are expected to see an 87% rise, while networks and cybersecurity skills are projected to increase by 70%.
• Creative Thinking, Flexibility: Skills like creative thinking, resilience, flexibility, and agility are also expected to see a significant rise, emphasizing the importance of soft skills in a technology-driven world.

Declining Jobs

The report lists the following positions as expected to decline by 2030:

• Postal Service Clerks
• Bank Tellers
• Data Entry Clerks
• Cashiers and Ticket Clerks
• Telemarketers
• Printing Workers
• Accounting and Bookkeeping Clerks

These roles are being replaced or transformed by automation and AI, which are reshaping traditional job functions.

Technological Advancements

• Digital Access: 60% of employers believe that expanding digital access will be the most transformative trend for businesses.
• AI and Robotics: Employers are investing heavily in AI, robotics, and energy technologies, creating a demand for skilled workers in these sectors.
• Energy Technologies: Jobs related to the green transition, including renewable energy and environmental engineering, will see an uptick as countries strive to meet climate goals.

Key Drivers of Change

• Technological Change: AI, machine learning, and automation will continue to reshape industries.
• Geoeconomic Fragmentation: Geopolitical tensions and economic shifts are prompting businesses to transform their models, leading to a greater demand for cybersecurity and security management roles.
• Aging Populations: The growing demand for healthcare services, especially in high-income economies, will result in more jobs in the care economy (e.g., nursing professionals, social workers).
• Green Transition: The global shift toward clean energy and environmental sustainability will create numerous opportunities for jobs in renewable energy and climate change mitigation.

Implications for India

• AI and Robotics Investment: Indian companies are leading the way in investing in AI, robotics, and autonomous systems.
• Growth Sectors: India’s rapidly developing tech sector will see a rising demand for AI, machine learning, and big data specialists.
• Disruptions in Traditional Jobs: Roles like postal clerks, cashiers, and data entry clerks in India are also expected to face significant reductions due to automation.

Challenges for Employment in India

• Skill Mismatch: There is a significant skill gap, with many workers lacking expertise in emerging fields like AI, cybersecurity, and data science.
• Digital Divide: Urban areas are adapting to new technologies faster than rural areas, which may widen employment disparities.
• Informal Sector: India’s large informal workforce faces challenges in transitioning to technology-driven jobs due to limited access to training and education.

Reskilling and Upskilling

• The WEF report emphasizes that 59% of the global workforce will need reskilling or upskilling by 2030 to remain competitive.
• Workers must adapt to new roles, especially in technology and the green transition, to meet the evolving demands of the job market.

In News:

The Global Energy Alliance for People and Planet (GEAPP) signed a Multi-Donor Trust Fund (MDTF) agreement with the International Solar Alliance (ISA) to mobilize $100 million for funding high-impact solar energy projects. This collaboration is part of a wider effort to accelerate India's clean energy transition, bridge financing gaps, and enhance the country's energy systems. Along with this agreement, two other key initiatives were announced:

• DUET (Digitalization of Utilities for Energy Transition)
• ENTICE 2.0 (Energy Transitions Innovation Challenge)

These programs aim to address energy transition challenges by fostering scalable, cost-efficient solutions, digitalizing utilities, and supporting innovations for sustainable energy.

Key Features:

• Multi-Donor Trust Fund (MDTF):
  • The MDTF aims to raise and deploy $100 million to finance impactful solar energy projects, with ISA driving the strategic direction.
  • GEAPP’s Project Management Unit will provide governance, fundraising, and technical expertise to ensure project success.
  • The collaboration emphasizes the importance of solar energy in achieving India's clean energy goals.
• DUET (Digitalization of Utilities for Energy Transition):
  • Focuses on transforming grid systems by digitalizing grid assets and integrating them with smart sensors.
  • Real-time data will help reduce transmission losses and facilitate Battery Energy Storage Systems (BESS) deployment, assisting in the integration of Distributed Renewable Energy (DRE) into the grid.
• ENTICE 2.0 (Energy Transitions Innovation Challenge):
  • A platform for identifying and scaling innovative solutions to accelerate the clean energy transition, especially within India's growing startup ecosystem.
  • Focuses on supporting investable opportunities for energy transition solutions, building on the earlier success of ENTICE 1.0.

Global Impact of GEAPP:

GEAPP, launched with an initial commitment of $464 million, has already funded 130 projects across 40 countries. These projects have impacted over 50 million people, helping reduce 43 million tons of CO2 emissions. The collaboration with ISA is expected to deepen GEAPP's efforts in mobilizing capital to foster clean energy access and tackle climate change.

India’s Clean Energy Transition:

India has already extended electricity access to over 800 million people, but about 2.5% of households still remain unelectrified. Distributed renewable energy, especially solar energy, will play a pivotal role in reaching these underserved populations. India aims for 47 GW of battery energy storage systems by 2032, which will support grid stability and energy access.

Additional Initiatives and Impact:

• Battery Energy Storage Systems (BESS):
  • GEAPP has also supported India’s first commercial standalone BESS project, which will provide 24/7 power to over 12,000 low-income customers.
  • The project is set to lower electricity tariffs by 55%, benefiting economically disadvantaged communities.
• Strategic Alliances:
  • The partnership with ISA and the strategic initiatives like DUET and ENTICE 2.0 aim to further India’s climate and energy goals, bringing renewable energy solutions to underserved regions, and supporting the country's energy security.

Role of GEAPP and ISA:

• GEAPP works to mobilize financing, provide technical expertise, and ensure effective implementation of renewable energy projects globally.
• ISA focuses on solar energy solutions, and with this agreement, it seeks to enhance the solar energy capacity in its member countries, aligning with climate targets.

About GEAPP:

GEAPP is a multi-stakeholder alliance comprising governments, philanthropy, technology partners, and financial institutions. Its goal is to transition developing economies to clean energy while enhancing economic growth. It aims to:

• Reduce 4 gigatons of carbon emissions.
• Provide clean energy access to 1 billion people.
• Create 150 million new jobs globally.

In News:

The Union Minister, Department of Fisheries, Ministry of Fisheries, Animal Husbandry and Dairying Shri Rajiv Ranjan Singh inaugurated and laid the foundation for 50 key projects worth Rs. 50 crores under Pradhan Mantri Matsya Sampada Yojana (PMMSY) covering all North East Region States Except Arunachal Pradesh and Mizoram.

Key Highlights:

• Initiative: India’s first Organic Fisheries Cluster, launched under the Pradhan Mantri Matsya Sampada Yojana (PMMSY). The cluster focuses on sustainable aquaculture, promoting the production of antibiotic, chemical, and pesticide-free organic fish.
• Target Markets: Eco-conscious domestic and global markets.

Sikkim's Role as India’s First Organic State:

• Sikkim's Organic Commitment: Sikkim is the first Indian state to embrace 100% organic farming, covering 75,000 hectares of land.
• Vision: The Organic Fisheries Cluster aligns with Sikkim’s broader goal of promoting organic, sustainable agricultural practices.

Objective of Organic Fisheries Cluster:

• To prevent pollution and protect aquatic ecosystems by using ecologically healthy practices.
• Promotes sustainable fish farming methods, reducing environmental damage.
• Focus on species like amur carp and other carp varieties, aligning with the state’s success in organic farming.

Support from NABARD:

• The National Bank for Agriculture and Rural Development (NABARD) will provide financial and technical assistance.
• Key support includes:
  • Infrastructure development.
  • Formation of Fisheries-based Farmer Producer Organizations (FFPOs).
  • Capacity building of local fishers and farmers.

PMMSY: A Comprehensive Fisheries Development Scheme:

• Investment: ?20,050 crore under PMMSY.
• Objective: To revolutionize India’s fisheries sector by promoting sustainable growth, enhancing fish production, and improving infrastructure.
• Implementation Period: FY 2020-21 to FY 2024-25.
• Key Goals:
  • Boosting fish production and exports.
  • Enhancing welfare of fishers and farmers.
  • Promoting cluster-based development for better efficiency and competitiveness.

Cluster-Based Approach in Fisheries:

• Objective: To bring together geographically connected enterprises to enhance economies of scale.
• Impact: This approach improves financial viability, strengthens the fisheries value chain, and creates new business and livelihood opportunities.
• Types of Clusters: Includes Pearl, Seaweed, Ornamental Fisheries, Cold Water Fisheries, Organic Fisheries, and more.

Fisheries Focus in the North Eastern Region (NER):

• Fisheries Potential: The North Eastern Region (NER) has abundant freshwater resources and is a biodiversity hotspot.
• Growth: Inland fish production in the NER surged from 4.03 lakh tonnes (2014-15) to 6.41 lakh tonnes (2023-24), marking an impressive 5% annual growth.
• Investment in NER: Over ?2,114 crore invested through schemes like Blue Revolution and PMMSY.
• Key Projects:
  • 50 projects worth ?50 crore to boost the region’s fisheries infrastructure, generating over 4,500 jobs.
  • Projects include hatcheries, cold storage units, aquaculture parks, and fish kiosks.

India’s Global Fisheries Standing:

• India is the second-largest fish producer in the world, contributing 8% to global fish production.
• Top Rankings:
  • Second in aquaculture production.
  • Leading in shrimp production and exports.
  • Third in capture fisheries.

Government Commitments and Schemes:

• Total Investment: Since 2015, the government has committed ?38,572 crore to fisheries development through key schemes like:
  • Blue Revolution.
  • Fisheries and Aquaculture Infrastructure Development Fund (FIDF).
  • PMMSY.
  • Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY).
• These initiatives aim to promote sustainable growth, create jobs, and enhance infrastructure in the fisheries sector.

Economic, Environmental, and Social Benefits:

• Economic Impact:
  • Higher incomes for fishers and farmers through better production and export.
  • Employment generation through infrastructure development.
• Environmental Impact: Reduced pollution and protection of aquatic ecosystems.
• Social Impact: Empowerment of local communities, fostering sustainable livelihoods.

In News:

UJALA scheme completes 10 years, saves ?19,153 crore annually

UJALA Scheme (Unnat Jyoti by Affordable LEDs for All)

• Launch Date: 5th January 2015 by PM Narendra Modi
• Objective:
  • To promote energy-efficient LED lighting across India
  • To reduce energy consumption, lower electricity bills, and decrease carbon emissions
• Implementing Body: Energy Efficiency Services Limited (EESL), Ministry of Power
• Scheme Relevance: Aims to provide affordable LED bulbs, tube lights, and fans to every household
• Global Recognition: World’s largest zero-subsidy domestic lighting scheme

Key Features:

• Affordability: Subsidized LED bulbs (?70-80), reducing the cost of electricity for households
• Energy Efficiency: LEDs consume 90% less energy than incandescent bulbs, 50% less than CFLs
• Environmental Impact: Significant reduction in CO? emissions by avoiding millions of tonnes annually
• Market Transformation: Over 36.87 crore LED bulbs distributed, saving approximately ?19,153 crore on electricity bills each year
• Consumer Benefit:
  • On-Bill Financing: LED bulbs available for purchase through deferred payment via electricity bills
  • Targeted low-income communities through Self-Help Groups (SHGs)

Achievements:

• Energy Savings: 47.9 billion kWh annually
• Cost Savings: ?19,153 crore saved on electricity bills
• Carbon Emission Reduction: 38.7 million tonnes of CO? avoided per year
• Peak Demand Reduction: 9,586 MW reduction in peak electricity demand
• Street Lighting: Over 1.34 crore LED streetlights installed, saving 9,001 million units annually

Key Initiatives:

• GRAM UJALA Scheme (March 2021): Aimed at rural households, providing LED bulbs at ?10 each
• Street Lighting National Programme (SLNP): Aimed at reducing public lighting costs with energy-efficient streetlights
• Encouraging Domestic Manufacturing: Stimulated local LED production, aligning with the "Make in India" mission
• E-Procurement Transparency: Real-time procurement ensuring price reductions and maintaining quality

Impact on Environment:

• Energy Savings & Carbon Footprint: The scheme significantly reduced the carbon footprint by promoting energy-efficient appliances
• Reduction in Household Consumption: Consumers benefit from reduced energy consumption and lower utility bills

In News:

A recent breakthrough in agricultural research offers a promising solution to improve Nitrogen Use Efficiency (NUE) in crops, particularly in rice and Arabidopsis, by reducing nitric oxide (NO) levels in plants. This innovative approach provides an environmentally sustainable way to enhance crop yields while minimizing the need for synthetic nitrogen fertilizers, which have significant ecological and economic drawbacks.

Key Findings and Research Overview:

• Reducing NO Levels: The study, conducted by researchers at the National Institute of Plant Genome Research (NIPGR), demonstrated that by reducing nitric oxide (NO) levels in plants, nitrogen uptake could be significantly improved. This leads to a better NUE, a crucial factor for enhancing crop yield sustainably.
• NUE and Its Importance: NUE refers to the efficiency with which plants use nitrogen for biomass production. Improving NUE allows for higher crop yields with less fertilizer input, reducing costs and minimizing nitrogen-related environmental pollution.
• Traditional Approaches and Their Limitations: Current techniques to improve NUE primarily rely on the use of inorganic nitrogen fertilizers. These methods, though effective, have several downsides:
  • They involve high operational costs for farmers.
  • Excessive fertilizer use contributes to the emission of nitrogen oxides (NOx) and other pollutants.
  • The production of these fertilizers also contributes to greenhouse gas emissions.

In contrast, the new study proposes a genetic and pharmacological manipulation of NO levels, offering a sustainable alternative to these traditional, resource-heavy methods.

Study Methodology:

The research team employed both genetic and pharmacological approaches to regulate NO levels in plants:

• Phytoglobin Overexpression: By overexpressing phytoglobin (a natural NO scavenger), the researchers increased the expression of high-affinity nitrate transporters (HATs) like NRT2.1 and NRT2.4. These transporters are essential for efficient nitrogen uptake.
• NO Donor and Scavenger Treatments: Plants were treated with NO donor (SNAP) and NO scavenger (cPTIO) to monitor the effects on NUE.
• Results: The treatment led to more efficient nitrogen uptake, especially under low NO conditions, by enhancing the expression of HATs. This method could increase plant growth and nitrogen utilization without relying on excessive fertilizer use.

Significance and Impact:

This research provides a pathway to enhance crop yield sustainably by addressing one of the most critical challenges in modern agriculture—reducing the reliance on nitrogen fertilizers. By modulating NO levels to regulate nitrogen uptake, this approach offers:

• Reduced need for synthetic fertilizers, lowering farmers' operational costs.
• Minimized environmental impact, including lower nitrogen oxide emissions and less nitrogen runoff.
• Improved nitrogen uptake efficiency, ensuring better crop yields, especially under conditions with limited nitrogen availability.

Broader Implications:

• Global Nitrogen Challenges:
  • The overuse of nitrogen fertilizers has been a major driver of nitrogen pollution, leading to issues like eutrophication, biodiversity loss, and climate change.
  • According to the Food and Agriculture Organization (FAO), excessive nitrogen use has worsened environmental conditions globally, while many regions, particularly in low-income countries, suffer from nitrogen depletion, which reduces crop productivity.
• Health and Environmental Risks:
  • Nitrogen pollution contributes to health issues like methemoglobinemia (blue baby syndrome) and various long-term diseases.
  • Nitrogen compounds also play a role in greenhouse gas emissions, further exacerbating climate change.
• Future Directions for Sustainable Agriculture:
  • This study highlights the need for innovative nitrogen management strategies, integrating both biological and genetic approaches to optimize nitrogen use.
  • Research is underway to develop NO scavenging formulations and identify bacteria that could be used in soil to enhance NUE in plants.
• Policy Recommendations:
  • Governments should focus on reducing the environmental and health impacts of nitrogen fertilizer production and usage by promoting sustainable farming practices.
  • Encouraging biological nitrogen fixation through crops like soybeans and alfalfa, and investing in low-emission fertilizers, can help mitigate nitrogen pollution.

In News:

The Indian Railways has unveiled a monumental engineering achievement with the completion of the Anji Khad Bridge, India’s first cable-stayed rail bridge.

Overview:

• The Anji Khad Bridge is India's first cable-stayed rail bridge, located in Jammu and Kashmir’s Reasi district.
• It is a key part of the Udhampur-Srinagar-Baramulla Rail Link (USBRL) project aimed at enhancing connectivity between Jammu and Kashmir and the rest of India.
• The bridge crosses the Anji River, a tributary of the Chenab River, and is expected to transform regional transport, boost tourism, and promote economic growth.

Key Features:

• Dimensions:
  • Total length: 725.5 meters.
  • Main Pylon Height: 193 meters from the foundation, standing 331 meters above the riverbed.
  • The bridge is designed for train speeds of up to 100 km/h and can withstand wind speeds of up to 213 km/h.
• Structure and Design:
  • Asymmetrical cable-stayed design supported by 96 cables with varying lengths (82 to 295 meters).
  • The structure includes:
    • A 120-meter approach viaduct on the Reasi side.
    • A 38-meter approach bridge on the Katra side.
    • A 473.25-meter cable-stayed portion crossing the valley.
    • A 94.25-meter central embankment linking the main bridge to the approach viaduct.
• Construction Techniques:
  • Used advanced construction techniques such as DOKA Jump Form Shuttering, Pump Concreting, and Tower Crane Technique to enhance safety and reduce construction time by 30%.
  • A 40-ton tower crane imported from Spain was employed for operations at great heights.
  • The project utilized site-specific investigations by IIT Roorkee and IIT Delhi due to the region’s complex geological and seismic conditions.
• Engineering Challenges:
  • The bridge had to be constructed in the difficult Himalayan terrain, with fragile geological features such as faults and thrusts.
  • Seismic activity in the region required additional precautions in the design and construction process.
• Safety and Monitoring:
  • Equipped with an integrated monitoring system that includes multiple sensors to ensure the structural health of the bridge during operation.

Importance and Impact:

• Connectivity: The bridge will significantly improve connectivity between Katra and Reasi, ensuring faster rail travel and linking the Kashmir Valley with the rest of India.
• Tourism and Economic Growth: Expected to boost tourism and economic development by improving access to the region, attracting visitors, and facilitating smoother transportation of goods and services.
• Sustainability: The bridge's design ensures it remains safe under extreme weather conditions, offering long-term reliability for the Indian Railways network.

Collaboration and International Expertise:

• The design and supervision were handled by ITALFERR (Italy), with proof-checking conducted by COWI (UK).
• The project combines Indian engineering codes with Eurocodes, adhering to international standards for structural integrity.

In News:

The Government of India has formed an 18-member panel, headed by Ramesh Chand, a member of NITI Aayog, to revise the base year of the Wholesale Price Index (WPI) to 2022-23 from the current base year of 2011-12. The panel will also work on a roadmap for transitioning from WPI to the Producer Price Index (PPI).

Key Highlights:

Role and Mandates of the Panel:

• Revised Commodity Basket: The panel will recommend a new commodity basket for both WPI and PPI, reflecting structural changes in the economy.
• Review of Price Collection System: The panel will evaluate the current system for price collection and propose improvements.
• Computational Methodology: It will determine the computational methodology for both WPI and PPI to ensure accuracy in tracking price changes.
• The panel has been tasked with submitting its final report to the Office of the Economic Adviser at the Department for Promotion of Industry and Internal Trade (DPIT) within 18 months.

Understanding WPI vs. PPI:

• WPI (Wholesale Price Index) tracks the price of goods at the wholesale stage (i.e., goods sold in bulk to businesses), and excludes the service sector.
  • Key Characteristics of WPI:
    • Does not consider consumer-facing prices.
    • Excludes services (about 55% of GDP).
    • Can have double-counting bias due to multiple transactions before the final sale.
    • Does not account for indirect taxes and may include export/import prices.
  • Use: WPI helps in tracking bulk price movements between businesses, but doesn't fully represent consumer price inflation.
• PPI (Producer Price Index) tracks prices at various stages of production, considering both goods and services, and measures the average change in prices received by domestic producers.
  • Key Characteristics of PPI:
    • Excludes indirect taxes (making it more accurate for price movement tracking).
    • Includes services, unlike WPI, giving a broader view of price trends across the economy.
    • More aligned with international standards (System of National Accounts).
    • Reflects prices before consumer consumption, providing a business-oriented perspective of price trends.

Why the Transition to PPI?

• The PPI is already used by major economies like the US, China, Germany, and Japan as it provides a more comprehensive measure of inflation from a producer’s perspective.
• It is expected to be a better indicator of inflationary trends in the overall economy, including both goods and services.

Challenges and Roadmap:

• The switch to PPI is complex, and the panel will need to ensure that the transition does not disrupt the current data collection and reporting systems. Both WPI and PPI will run concurrently until PPI stabilizes.

In News:

• The B-READY report, launched by the World Bank in 2024, replaces the Ease of Doing Business (EoDB) index.
• Focus: It evaluates the global business environment to foster inclusive private sector growth, assessing 10 core topics covering a firm's lifecycle, such as business entry, taxation, labor, and international trade.

India’s Potential Challenges

• Business Entry: India faces multiple steps and incomplete digital integration, making it slower compared to benchmarks like Singapore, which achieves one-day registration at minimal cost.
• Labor Regulations: While India has introduced four labor codes, the implementation remains slow and inconsistent, affecting labor flexibility and compliance.
• International Trade: India struggles with customs delays, inconsistent enforcement, and high logistics costs, unlike countries like Germany and Singapore, which promote trade efficiently.
• Business Location: Regulatory delays and inconsistent approvals hinder the establishment of business facilities, affecting investment decisions.
• Public Services Gap: While regulations may be strong, there is often a gap in the provision of public services that support their effective implementation, leading to inefficiencies.

Key Strengths for India

• India is expected to score well in the areas of Quality of Regulations, Effectiveness of Public Services, and Operational Efficiency.
• The country shows promise in promoting digital adoption and aligning with global environmental sustainability practices, though gender-sensitive regulations need more emphasis.

Significance

• The B-READY report serves as an essential benchmark for assessing India's business environment, offering insights into regulatory reforms and operational efficiency.
• Key policy implications for India include the need to:
  • Streamline business operations by digitizing registration and regulatory approval processes.
  • Improve logistics and trade efficiency by reducing customs delays.
  • Address labor market inefficiencies through better implementation of labor codes.
  • Invest in public services and promote digital transformation for better compliance and operational ease.
  • Focus on sustainability and inclusivity, ensuring gender-sensitive policies and fostering green business practices.

Global Findings from the B-READY Report

• Economies with strong regulatory frameworks and digital tools (e.g., Rwanda, Georgia) show that even countries with varying income levels can achieve high scores.
• High-income countries like Estonia and Singapore still have room for improvement, especially in areas like taxation and dispute resolution.

Comparison of B-READY with Ease of Doing Business (EoDB)

• Scope: B-READY is broader, covering a firm’s lifecycle and social benefits, while EoDB focused mainly on regulatory burdens.
• Indicators: B-READY uses 1,200 indicators from expert consultations and firm-level surveys, offering more comprehensive insights compared to the EoDB's limited metrics.
• Focus on Public Services: Unlike EoDB, which provided limited attention to public services, B-READY explicitly evaluates public service efficiency and operational effectiveness.

Policy Recommendations

• Streamline Business Operations: Inspired by countries like Singapore, India should simplify business registration and reduce delays in customs and regulatory approvals.
• Strengthen Public Services: Focus on improving tax portals, utility access, and dispute resolution systems through digital tools.
• Promote Sustainability: Encourage environmentally sustainable business practices and adopt gender-sensitive regulations to ensure inclusive growth.
• Peer Learning and Global Collaboration: Encourage India to learn from best practices in countries like Singapore and Estonia for effective reforms.
• Tailored Reforms: India must design policies addressing unique local challenges while adhering to global standards.

In News:

Lighthouse tourism in India is rapidly emerging as an exciting and profitable segment of the country's travel and tourism industry. India's coastline, stretching over 7,500 kilometers, is home to 204 lighthouses, many of which are being transformed into vibrant tourist destinations, celebrating both India's rich maritime history and its natural beauty.

Key Highlights:

• Historical and Scenic Appeal: Lighthouses in India are often located in breathtaking coastal or island locations, offering panoramic sea views and access to surrounding natural beauty. Some of these structures are centuries old and are situated near significant cultural landmarks or UNESCO World Heritage Sites, adding cultural depth to the visitor experience.
• Economic Growth: As part of the broader Maritime India Vision (MIV) 2030 and Amrit Kaal Vision 2047, the Government of India is keen to transform these historic lighthouses into hubs of economic activity. By developing infrastructure, creating new tourism-related jobs, and fostering local entrepreneurship, lighthouse tourism aims to benefit coastal communities and boost India's tourism economy. As of 2023-24, 75 lighthouses across 10 states have been equipped with modern amenities, attracting 16 lakh visitors—a 400% increase from previous years.
• Government Initiatives:
  • Lighthouse Festivals: The annual Indian Lighthouse Festival, inaugurated in 2023, serves as a key event to promote lighthouse tourism and cultural heritage.
    • The 1st Indian Lighthouse Festival, “Bharatiya Prakash Stambh Utsav”, was inaugurated on 23rd September, 2023 by the Union Minister of Ports, Shipping & Waterways, Shri Sarbananda Sonowal and Goa Chief Minister, Shri Pramod Sawant at the historic Fort Aguada in Goa.
    • The 2nd Indian Lighthouse Festival was held in Odisha. Union Minister of Ports, Shipping & Waterways, Shri Sarbananda Sonowal, was also joined by Odisha Chief Minister, Mohan Charan Majhi. Shri Sonowal dedicated two new lighthouses at Chaumuck (Balasore) and Dhamra (Bhadrak) and emphasized empowering coastal communities to preserve and promote lighthouses as part of India’s rich maritime heritage.
  • Sagarmala Programme: This government initiative integrates infrastructure development with sustainable practices, ensuring that the growth of lighthouse tourism benefits local communities while preserving the environment.
  • Tourism Infrastructure: The government has invested ?60 crore in enhancing these sites, providing facilities like museums, parks, amphitheaters, and more to enrich the visitor experience.
• Sustainable Development: The Indian government places a strong emphasis on eco-friendly tourism. This includes integrating lighthouses into broader coastal circuits and launching digital awareness campaigns to attract domestic and international tourists.
• Community Empowerment and Employment: Lighthouse tourism has already created direct and indirect employment, from hospitality to transportation, local handicrafts, and artisan work, with more than 500 jobs being generated. Local communities are being trained to offer skills in hospitality and tourism services.

Future Plans:

• Skill Development: Programs are being introduced to equip local people with the necessary skills to cater to the tourism industry.
• Sustainable Practices: Eco-friendly practices will continue to be emphasized to protect coastal ecosystems.
• Integration with Coastal Circuits: Lighthouses will become key points of interest in broader coastal tourism itineraries, further enhancing their appeal to tourists.

In News:

The latest Household Consumption Expenditure Survey (HCES) for 2023-24 reveals notable trends in consumption patterns in rural and urban India, reflecting economic shifts post-pandemic.

Key Highlights:

• Food Spending Increase: The share of food expenditure in household budgets has increased both in rural and urban areas, likely due to rising food prices.
  • Rural households allocated 47.04% of their expenditure to food in 2023-24, up from 46.38% in 2022-23.
  • Urban households spent 39.68% of their budgets on food, slightly up from 39.17% last year.
• Narrowing Urban-Rural Gap: The gap in Monthly Per Capita Consumption Expenditure (MPCE) between rural and urban households has steadily reduced over the past decade.
  • In 2023-24, rural consumption spending was 69.7% of urban consumption, an improvement from 71.2% in 2022-23 and 83.9% in 2011-12.
• Increased Rural Spending: Rural India has seen significant increases in spending. The average monthly spending per person in rural areas rose by 9.3% to Rs 4,122 in 2023-24, surpassing the 8.3% rise to Rs 6,996 in urban areas.
  • This suggests a growing momentum in rural consumption, which has outpaced urban consumption growth in the last year.
• Spending Trends Across Income Groups: While the top 5% of both rural and urban populations saw a decrease in their consumption spending, every other income group, including the bottom 5%, registered an increase in spending.
  • The bottom 20% in both rural and urban areas saw the highest growth in expenditure, signaling rising economic activity among lower-income groups.
• Non-Food Expenditure Dominates: Non-food items make up a larger share of household spending, particularly in urban areas, where they account for 60.32% of total expenditure compared to 52.96% in rural areas.
  • In rural India, major non-food expenses include medical, conveyance, and clothing, while urban households allocate more to entertainment, education, and miscellaneous goods.
• Regional Consumption Patterns: Consumption expenditure varied significantly across states, with western and northern states like Maharashtra, Punjab, and Tamil Nadu spending more than the national average.
  • In contrast, eastern and central states, including West Bengal, Bihar, and Odisha, spent less. Sikkim reported the highest per capita expenditure in both rural (Rs 9,377) and urban (Rs 13,927) areas, while Chhattisgarh recorded the lowest.
• Declining Consumption Inequality: The Gini coefficient, which measures consumption inequality, has declined in both rural and urban areas.
  • This reflects reduced disparity in spending, indicating a trend toward more equitable economic growth across regions.
• Food Expenditure Trends: Food categories like beverages, processed foods, and cereals continued to see rising shares in total expenditure. The rise in spending on food items was particularly notable in rural areas for eggs, fish, and meat.

In News:

The government’s flagship Operation Greens scheme, designed to stabilise crop prices and benefit farmers, has spent just 34 per cent of its allocated budget for 2024-25, according to a parliamentary report, even as onion farmers in Maharashtra reel from massive losses and potato shortages grip eastern states.

Key Highlights:

Overview:

• Launched: November 2018 under the Pradhan Mantri Kisan SAMPADA Yojana.
• Objective: Stabilize prices and improve farmers' income by enhancing the production and marketing of perishable crops, initially focusing on Tomato, Onion, and Potato (TOP).
• Expanded Scope (2021): Includes 22 perishable crops like mango, banana, ginger, apple, and shrimp.
• Implemented by: Ministry of Food Processing Industries (MoFPI).
• Funding: Managed by the National Agricultural Cooperative Marketing Federation of India (NAFED).

Key Aims:

• Reduce price volatility in agricultural markets.
• Minimize post-harvest losses.
• Strengthen farm-to-market linkages.
• Enhance farmers’ earnings by stabilizing market prices.
• Promote value addition and food processing.

Scheme Components:

• Short-term Interventions:
  • Subsidies on transportation (50%) and storage (50%) to protect farmers from distress sales.
  • Price stabilization during periods of surplus or shortage.
• Long-term Interventions:
  • Development of farm-gate infrastructure like cold storage and processing facilities.
  • Strengthening production clusters and Farmer Producer Organizations (FPOs).
  • Building efficient agri-logistics systems.
  • Promoting food processing and value addition capacities.

Key Features:

• 50% subsidy on transportation and storage costs for eligible crops.
• Projects eligible for 50% subsidy (up to ?50 crore per project), and for FPOs, a 70% subsidy.
• Demand-driven funding based on applications, with no fixed crop or state-wise allocation.

Key Findings from Parliamentary Standing Committee (PSC) Report (2024):

• Underutilisation of Budget: Only 34% (?59.44 crore) of the allocated ?173.40 crore for 2024-25 spent by October 2024, leaving 65.73% unspent.
• Slow Implementation: Out of 10 targeted projects, only 3 were completed by October 2024.
• Limited Impact on Price Stabilization:
  • Onion prices fell by nearly 50% in Maharashtra, despite the scheme's intent to stabilize prices.
  • Potato shortages in states like Odisha and Jharkhand due to weather-induced production dips in West Bengal.
• Inconsistent Policies: Export bans and fluctuating export duties caused frustration among onion farmers, undermining the scheme’s effectiveness in ensuring fair prices.

Impact on Farmers:

• Price Stabilization: Despite the scheme’s aims, price fluctuations continue to affect farmers, especially in Maharashtra with the onion price crash.
• Post-Harvest Losses: The scheme aims to reduce wastage by building infrastructure like cold storage, but challenges remain in implementation.
• Market Linkages: Attempts to connect farmers and FPOs with retail markets have not yet yielded significant results.

Operational Challenges:

• The scheme faces challenges in fulfilling its dual mandate of ensuring fair prices for farmers while keeping consumer prices affordable.
• The slow utilization of funds and incomplete infrastructure projects raise concerns about the effectiveness of the program.
• Inconsistent policy decisions, like the export ban and imposition of export duties, have contributed to farmer discontent.

In News:

• The Reserve Bank of India (RBI) has set up an eight-member committee to create a framework for the responsible and ethical use of Artificial Intelligence (AI) in the financial sector.
• The committee is chaired by Dr. Pushpak Bhattacharyya, Professor in the Department of Computer Science and Engineering at IIT Bombay.

Key Highlights:

Committee's Objective:

• The primary goal is to develop a Framework for Responsible and Ethical Enablement of AI (FREE-AI) in the financial sector.
• It will guide the ethical adoption of AI in financial services to enhance operational efficiency, decision-making, and risk management.

Scope of the Committee's Work:

• Assess the current global and domestic adoption of AI in financial services.
• Identify potential risks and challenges associated with the integration of AI in the sector.
• Recommend a framework for evaluating, mitigating, and monitoring AI-related risks.
• Propose compliance requirements for various financial entities (e.g., banks, NBFCs, fintech firms).
• Suggest a governance framework for ethical AI usage.

Key Benefits of AI in Financial Services:

• Operational Efficiency: AI can automate repetitive tasks, process large datasets, and enhance accuracy (e.g., loan application processing).
• Enhanced Decision-Making: Predictive analytics in AI help forecast market trends, aiding in better financial decision-making (e.g., algorithmic trading).
• Customer Relationship Management: AI-powered chatbots and virtual assistants enhance customer interaction, offering 24/7 support.
• Improved Risk Management: AI enables proactive fraud detection, improving security and preventing financial losses.

Concerns Associated with AI in Finance:

• Embedded Bias: AI models can replicate biases present in training data, leading to discriminatory outcomes and financial exclusion.
• Data Privacy and Security: The use of AI poses risks to personal data security, with potential violations of privacy regulations.
• Operational Challenges: AI systems may exhibit inconsistent responses, leading to challenges in trust and effectiveness.
• Cybersecurity Risks: Increased use of AI can heighten vulnerability to cyber-attacks and exploitation.

RBI's Role & Governance:

• The RBI aims to ensure that AI adoption in the financial sector is ethical, transparent, and aligned with global best practices.
• The committee's recommendations will influence policies to prevent misuse and safeguard consumer interests.

In News:

The real effective exchange rate (REER) index of the rupee touched a record 108.14 in November, strengthening by 4.5 per cent during this calendar year, according to the latest Reserve Bank of India (RBI) data.

Key Highlights:

• Record REER Index:

• The Real Effective Exchange Rate (REER) of the rupee reached an all-time high of 108.14 in November 2024.
• This marks a 4.5% appreciation in REER during the calendar year 2024, according to RBI data.

• What is REER?

• REER is a weighted average of a country’s currency value against the currencies of its major trading partners, adjusted for inflation differentials.
• It considers 40 currencies accounting for about 88% of India's trade.

• REER Calculation:

• Nominal Exchange Rates: The exchange rate between the rupee and each partner's currency.
• Inflation Differentials: Adjusts for inflation differences between India and its trading partners.
• Trade Weights: Based on the trade share with each partner.

• Recent Trends in REER:

• In 2023, REER dropped from 105.32 in January to 99.03 in April.
• It has since been on an appreciating trend, reaching 107.20 in October and 108.14 in November 2024.

• Dollar Strengthening Impact:

• Despite the rupee weakening against the US dollar (from 83.67 to 85.19 between September and December 2024), it has appreciated against the euro, British pound, and Japanese yen.
• The dollar's strengthening was fueled by global economic factors, including inflation expectations in the US and high bond yields, which led to capital outflows from other countries, including India.

• Impact on Exports and Imports:

• Overvaluation: A REER above 100 signals overvaluation, which can harm export competitiveness (exports become costlier) while making imports cheaper.
• Undervaluation: A REER below 100 indicates a currency is undervalued, boosting exports but increasing the cost of imports.

• India's Inflation and REER:

• India's higher inflation relative to trading partners is a key factor behind the rupee’s rising REER, despite its depreciation against major currencies.
• This suggests the rupee is overvalued, which could explain why the RBI may allow the rupee to depreciate further against the dollar.

• Global Context:

• The strengthening of the US dollar, influenced by factors such as tariff policies under the Trump administration and tighter US monetary policies, plays a significant role in the depreciation of the rupee against the dollar.
• This dynamic affects India's trade balance, with potential consequences for export growth.

• Implications for India’s Economy:

• Overvalued currency (as indicated by REER above 100) can lead to a trade deficit, as imports become cheaper and exports less competitive.
• A weaker rupee, particularly against the dollar, could boost Indian exports but raise the cost of imports.

In News:

India possesses diverse fisheries resources that provide livelihood opportunities to approximately three crore fishers and fish farmers. The country has witnessed an 83% increase in the national fish production since 2013-14, that stands at a record 175 lakh tons in 2022-23.

Importance of Fisheries Extension Services:

• Livelihood Support: Fisheries provide livelihoods to over 3 crore fishers and fish farmers in India. The sector's growth is crucial for enhancing sustainable practices and ensuring long-term productivity.
• Growth in Fish Production: India’s fish production has seen an 83% increase since 2013-14, reaching 175 lakh tons in 2022-23, with 75% of production coming from inland fisheries. India is the second-largest fish and aquaculture producer globally.
• Role of Extension Services: Extension services bridge the gap between scientific advancements and fishers, offering guidance on:
  • Species lifecycle management
  • Water quality management
  • Disease control
  • Sustainable rearing technologies and business models.

Government Initiatives to Strengthen Fisheries Extension:

• Matsya Seva Kendras (MSKs):
  • Launched under PMMSY (Pradhan Mantri Matsya Sampada Yojana) in 2020, MSKs are one-stop centers providing comprehensive extension services.
  • Support to Fish Farmers: MSKs offer:
    • Disease testing, water, and soil analysis.
    • Training on sustainable aquaculture practices.
    • Technology infusion in seed/feed management.
  • Focus on Inclusivity: Government assistance (up to 60%) is available for women and marginalized communities to set up MSKs.
  • Examples:
    • Thrissur, Kerala: Equipped with labs for water and microbial analysis.
    • Maharashtra (Nasik and Sangli): Capacity-building efforts on seed/feed inputs.
  • Collaborations: MSKs mobilize start-ups, cooperatives, and Fish Farmer Producer Organizations (FFPOs) to share best practices, including regenerative and conservation management in the face of climate change.
• Sagar Mitras:
  • Role: Deployed in coastal states and union territories, Sagar Mitras act as a vital interface between the government and marine fishers.
  • Functions:
    • Collection and dissemination of daily marine catch data, price fluctuations, and market insights.
    • Dissemination of important information: weather forecasts, fishing zones, local regulations, and hygienic fish handling.
    • Provide support on disaster preparedness and natural calamities.

Enhancing Extension Services through Digital Platforms:

• AquaBazaar: A virtual learning platform initiated by the National Fisheries Development Board to provide expert guidance on:
  • Seed production and breeding of commercially important fish species.
  • Practical demonstrations to improve fishers' knowledge.
• Digital Outreach: Expanding such platforms will improve access to resources for fishers, especially in rural and remote areas.

Institutional Convergence and Capacity Building:

• Krishi Vigyan Kendras (KVKs): Fisheries extension services should be integrated with the over 700 Krishi Vigyan Kendras and state-level agricultural extension services for effective outreach.
• Formalizing the Sector: The World Bank-assisted project aims to create work-based digital identities for fishers and fish farmers, enhancing their access to extension services, training, and awareness programs.

Challenges in Fisheries Extension Services:

• Fragmented Initiatives: Multiple government schemes and programs lack institutional convergence, leading to inefficiencies in reaching the grassroots level.
• Digital Divide: Many rural and coastal areas face challenges in terms of digital literacy and internet connectivity, limiting the effectiveness of online platforms.
• Impact of Climate Change: Unpredictable weather patterns and resource depletion due to overfishing demand adaptive strategies and the promotion of climate-resilient practices.

Conclusion and Way Forward:

• Institutional Convergence: Combining existing extension machinery like Krishi Vigyan Kendras with fisheries extension services to leverage established networks and knowledge.
• Expand Digital Outreach: Platforms like AquaBazaar should be expanded to ensure wider access to expert knowledge, training, and best practices.
• Private Sector Collaboration: Encouraging public-private partnerships can enhance technology dissemination, capacity building, and resource mobilization in the fisheries sector.
• Focus on Sustainability: Developing climate-resilient and sustainable fisheries practices will be essential to address challenges posed by environmental changes and overfishing.

In News:

Private aviation is releasing more than its ‘fair share’ of emissions.

Key Highlights:

• Aviation Sector's Global Emissions:
  • The aviation sector contributed 2% of global CO2 emissions in 2022, around 800 Mt CO2 (International Energy Agency).
  • If considered as a nation, aviation would rank among the top 10 emitters worldwide.
  • Emissions from aviation have grown faster than other sectors like rail, road, or shipping in recent decades.
• Private Aviation and Its Impact:
  • Private jets emit 5 to 14 times more CO2 per passenger than commercial flights and 50 times more than trains.
  • Emissions from private aviation increased by 46% between 2019 and 2023.
  • Each private flight contributes 3.6 tonnes of CO2 on average, intensifying global warming.
  • Private aviation is responsible for significant nitrogen oxide (NOx) emissions and the creation of vapor trails, which further amplify environmental damage.

Trends in Private Aviation Growth:

• Global Trends:
  • The number of private jets increased from 25,993 in December 2023 to 26,454 in February 2024.
  • In the U.S., 69% of private aviation activity is concentrated.
  • 8,500 more jets are expected to be delivered in the next 10 years globally.
• Private Aviation in India:
  • 112 private planes were registered in India as of March 2024, placing it among the top 20 countries for private aircraft ownership.
  • India's private aviation sector is expanding, driven by the growing billionaire and millionaire population.
  • Private aircraft ownership in India stands at 1 per 1 lakh population, which is low compared to countries like Malta (46.51 per lakh) and the U.S. (5.45 per lakh).

Emission Reduction Efforts and Solutions:

• Sustainable Aviation Fuels (SAFs):
  • SAFs are bio-based or waste-derived fuels that can reduce carbon emissions by up to 80% compared to conventional jet fuels.
  • Airlines like SpiceJet (2018) and AirAsia (2023) have tested SAFs, but large-scale adoption is hindered by high costs and limited production.
  • India aims to leverage its ethanol production chain, with potential to meet 15-20% of aviation fuel demand by 2050 if only surplus sugar is used.
• Hydrogen and Electric Aviation:
  • Hydrogen offers a higher energy density than kerosene and emits only water vapor, making it a clean fuel alternative. However, hydrogen faces challenges with storage, infrastructure, and aircraft redesign.
  • Battery-electric propulsion offers zero emissions but is currently limited by battery weight, energy density, and charging infrastructure.

India’s Policy and Initiatives:

• Government Initiatives:
  • UDAN Scheme (Ude Desh ka Aam Nagrik) aims to enhance rural connectivity.
  • NABH (Nextgen Airports for Bharat Nirman) seeks to increase airport capacity by five times.
• Sustainability Efforts:
  • Indian airlines have tested SAFs, such as a 25% jatropha oil blend by SpiceJet in 2018.
  • Ethanol for aviation fuel: India plans to use surplus sugar for ethanol, potentially fulfilling 15-20% of aviation fuel needs by 2050.
• Challenges to Decarbonisation:
  • SAFs are costly and limited in availability.
  • Hydrogen requires extensive infrastructure and aircraft redesign.
  • Battery-electric solutions are currently unsuitable for long-haul flights due to energy limitations.

In News:

National Farmers' Day, also known as Kisan Diwas, is celebrated annually on December 23rd to honor the vital contributions of Indian farmers and commemorate the birth anniversary of Chaudhary Charan Singh, India's fifth Prime Minister. A passionate advocate for rural development and farmers' welfare, Charan Singh's policies laid the foundation for several reforms aimed at uplifting the agrarian economy. His contributions continue to inspire government initiatives that prioritize the welfare of farmers, fostering sustainable agricultural growth and ensuring food security for the nation.

The Legacy of Chaudhary Charan Singh

Chaudhary Charan Singh was born on December 23, 1902, in Noorpur, Uttar Pradesh. His deep understanding of rural issues and commitment to improving farmers’ lives earned him the title of "Kisan Leader". Throughout his political career, he championed reforms such as the Debt Redemption Bill (1939), which alleviated the financial burdens of farmers, and the Land Holding Act (1960), which promoted fair distribution of agricultural land. He also advocated for Minimum Support Price (MSP), and his policies laid the groundwork for NABARD and other farmer-centric institutions.

Significance of Kisan Diwas

Kisan Diwas highlights the importance of agriculture in India’s economy and employment, with farmers constituting nearly 50% of the workforce. The day emphasizes the need for policies that address farmers' challenges such as climate change, financial constraints, and technological adoption. It also serves as a reminder of the necessity to empower farmers through innovative solutions, financial security, and sustainable farming practices.

Key Government Initiatives for Farmer Welfare

The Indian government has launched several schemes to address the challenges faced by farmers and support their socio-economic upliftment:

• Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): Provides direct income support to small and marginal farmers.
• Pradhan Mantri Fasal Bima Yojana (PMFBY): Offers crop insurance to mitigate financial risks due to crop loss.
• Pradhan Mantri Kisan Maandhan Yojana (PM-KMY): A pension scheme for farmers to ensure long-term social security.
• Soil Health Card Scheme: Promotes efficient fertilizer use and soil health by providing farmers with personalized soil health reports.
• Farmer Producer Organizations (FPOs): These entities help farmers collectively access markets, reduce costs, and improve bargaining power.
• Modified Interest Subvention Scheme (MISS): Provides affordable credit to farmers, especially for agriculture-related activities.
• Kisan Credit Card (KCC): Helps farmers access timely credit for agricultural purposes at concessional rates.

Significant Budget Allocations and New Schemes

The government has drastically increased its budget allocation to the agriculture sector. From Rs. 21,933.50 crore in 2013-14, the budget has risen to Rs. 1,22,528.77 crore for 2024-25, underlining the government's commitment to farmer welfare and sustainable agricultural development.

Notable Initiatives:

1. Namo Drone Didi Scheme: This initiative, aimed at empowering Women Self-Help Groups (SHGs), supports the use of drones for agricultural purposes, including fertilizer and pesticide application, with 80% financial assistance.
2. Clean Plant Programme (CPP): Enhances the quality and productivity of horticulture crops by ensuring disease-free planting material.
3. Digital Agriculture Mission: Aims to modernize farming with digital infrastructure, including crop estimation surveys and e-agriculture platforms.
4. National Mission on Natural Farming (NMNF): Encourages chemical-free, sustainable farming practices.

Farmers' Role in Nation-Building

India’s agricultural sector not only sustains the livelihoods of millions but also contributes significantly to the country's GDP. In FY 2023-24, agriculture contributed 17.7% to the Gross Value Added (GVA). With over 54% of the country's land dedicated to agriculture, farmers are critical to food security and rural development.

In 2023-24, India achieved a record foodgrain production of 332.2 million tonnes, illustrating the resilience of Indian farmers in ensuring food availability despite challenges like climate change.

In News:

The SAMARTH Udyog Bharat 4.0 initiative, launched by the Ministry of Heavy Industries (MHI), aims to enhance the competitiveness of the Indian capital goods sector by promoting the adoption of Industry 4.0 technologies. This initiative is part of the Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector.

Key Features of SAMARTH Udyog Bharat 4.0 Initiative

• Establishment of Smart Manufacturing Hubs: Under this initiative, four Smart Advanced Manufacturing and Rapid Transformation Hub (SAMARTH) Centres have been set up across India:
  • Centre for Industry 4.0 (C4i4) Lab, Pune
  • IITD-AIA Foundation for Smart Manufacturing, IIT Delhi
  • I-4.0 India @ IISc, Bengaluru
  • Smart Manufacturing Demo & Development Cell, CMTI, Bengaluru
• Cluster Industry 4.0 Experience Centres: In addition to the above centres, 10 cluster Industry 4.0 experience centres have been approved. These will be established under a Hub and Spoke model, managed by the C4i4 Lab in Pune, and spread across India.
• Key Achievements:
  • Model Factories: Development of an Industry 4.0 enabled Model Factory at C4i4, Pune, and a smart production-based factory at CMTI Bengaluru.
  • Industry 4.0 Solutions: More than 50 use-cases for Industry 4.0 solutions were compiled to support implementation.
  • Maturity Assessment Tool: Creation of the Industry 4.0 Maturity Model (I4MM), specifically designed to assess the readiness of Indian manufacturing companies for Industry 4.0.
  • Online Assessment Tool: Launch of a free online assessment tool by C4i4 Lab, Pune, to help MSMEs evaluate their maturity in adopting Industry 4.0 technologies.
• Training and Awareness:
  • Workshops and Seminars: Regular awareness seminars, workshops, and knowledge-sharing events are organized to educate industries about Industry 4.0.
  • Workforce Training: The SAMARTH Centres have trained over 5000 professionals on smart manufacturing and Industry 4.0 technologies.
  • Consultancy Services: The centres offer consultancy in areas such as IoT hardware, software development, and data analytics, along with incubation support for start-ups and MSMEs.
• Impact on MSMEs:
  • Digital Maturity Assessments: Over 100 digital maturity assessments have been completed for the auto industry, and more than 500 improvement initiatives have been identified.
  • Training and Capacity Building: Over 500 digital champions have been trained on Industry 4.0 technologies.
• Focus on MSMEs: While no direct financial assistance is provided to industries, including MSMEs, under this initiative, the SAMARTH Centres play a key role in helping them adopt Industry 4.0 technologies and build their capabilities.

Key Takeaways:

• The SAMARTH Udyog Bharat 4.0 initiative seeks to increase the global competitiveness of India's capital goods and manufacturing sectors.
• It leverages Industry 4.0 technologies such as IoT, automation, data analytics, and AI to modernize manufacturing processes.
• The initiative involves setting up 4 major Smart Manufacturing Hubs and 10 regional experience centres across the country to facilitate awareness, training, and adoption of Industry 4.0 among manufacturers, especially MSMEs.
• While it does not provide financial aid, it helps industries improve their digital maturity, trains workforce, and guides them through consultancy and workshops.

In News:

India is expanding its digital infrastructure with the launch of two major undersea cable systems aimed at enhancing its Internet connectivity with Asia and Europe. The India Asia Xpress (IAX) and India Europe Xpress (IEX) are set to provide additional data links between India and these regions, supporting the growing demand for data usage. This also marks India’s increasing involvement in submarine cable resilience and security discussions.

Key Points:

• New Cable Systems:
  • India Asia Xpress (IAX): Connects Chennai and Mumbai with Singapore, Thailand, and Malaysia.
  • India Europe Xpress (IEX): Connects Chennai and Mumbai with France, Greece, Saudi Arabia, Egypt, and Djibouti.
• Total Length: Both cables, together spanning over 15,000 kilometers, will expand India’s undersea cable network.
• Ownership and Investment:
  • Both cable systems are owned by Reliance Jio, with a strategic investment from China Mobile.
• Geopolitical Impact:
  • These expansions are a response to growing Internet traffic, as well as India's rising geopolitical ambitions. They help bolster India’s defense strategy, improving cable resilience against disruptions from cyberattacks or physical damages.
  • India’s active role in maritime cable network security is being closely watched, especially in key regions like the Bay of Bengal and the South China Sea.
• Past Cable Disruptions:
  • In March, three cables connecting India to West Asia and Europe were disrupted, impacting Internet traffic. However, India’s alternate routing systems and data centers ensured services remained operational, highlighting the country’s resilience.
• International Role:
  • India’s role in submarine cable resilience is growing. Telecom Secretary Neeraj Mittal is part of the International Advisory Body for Submarine Cable Resilience, established by the International Telecommunication Union (ITU).

Impact on India’s Connectivity:

• Bangladesh's Role:
  • Plans to sell bandwidth from Bangladesh to Northeast India were recently put on hold. However, this does not significantly impact India as Northeast India already benefits from substantial fiber-optic connectivity through Power Grid Corporation of India’s transmission lines.

About Underwater Cables:

• What Are Undersea Cables?
  • Undersea cables are fiber-optic cables laid under the ocean to transmit data across vast distances at high speeds.
• New Cable Systems:
  • IAX: Connects India to Asia (Singapore, Thailand, Malaysia).
  • IEX: Connects India to Europe (France, Greece, Saudi Arabia, Egypt, Djibouti).
• How They Work:
  • Fiber-optic technology uses laser beams through thin glass fibers to transmit data.
  • The cables are protected by multiple layers of insulation, plastic, and steel wires and are buried near shores or laid directly on the ocean floor in deep sea regions.
• Cable Features:
  • Data Capacity: New cables can carry up to 224 Tbps (Terabits per second).
  • Durability: Designed to avoid damage from fault zones, fishing areas, or anchors.
  • Speed: Faster and more cost-efficient than satellite communications for large-scale data transfer.

Why Undersea Cables Over Satellites?

• Higher Capacity: Submarine cables handle far more data than satellites.
• Cost-Effective: More affordable for high-volume data transfers.
• Reliability: Cables provide more stable connections, especially for large-scale data, compared to satellites.

In News:

Scientists develop ‘kisan kavach’ to shield farmers from pesticide sprays.

Key Highlights:

• Purpose: The Kisan Kavach is designed to shield farm labourers from harmful pesticide exposure. Pesticides, often neurotoxins, can be detrimental to health, causing symptoms like dizziness, headaches, vomiting, and even death with high exposure.
• Development:
  • Developed by Biotechnology Research and Innovation Council (BRIC-inStem), Bangalore, in collaboration with Sepio Health Pvt. Ltd.
  • Launched by Union Minister of State for Science and Technology.
• Fabric Technology:
  • The suit uses oxime fabric, which chemically breaks down common pesticides on contact, preventing them from penetrating the skin.
  • Mechanism: The fabric works through nucleophilic mediated hydrolysis, deactivating pesticides upon contact and preventing pesticide-induced toxicity and lethality.
• Components of the Kit:
  • Consists of a trouser, pullover, and face-cover.
  • Washable and reusable: The suit retains its protective properties even after 150 washes, in a wide temperature range, and under UV light exposure.
• Affordability:
  • Priced at ?4,000 per kit, with efforts underway to reduce costs through increased production.
• Field Testing and Efficacy:
  • Animal studies: Rodent tests showed that animals exposed to pesticides and covered with ordinary cotton cloth died within four days, while those with the activated fabric remained safe.
  • Human trials are still pending.
• Health Implications:
  • Pesticides are linked to chronic health issues, including cancer, as per studies by the National Institute of Nutrition (Indian Council of Medical Research).
• Global Context:
  • In 2020, India used 61,000 tonnes of pesticides, despite producing much more (2,58,130 tonnes in 2022-2023).
  • Pesticide-related health issues are a major concern, with 60% of India’s adult workforce engaged in agriculture.
• Impact:
  • The suit aims to protect farm labourers from pesticide exposure and promote sustainable agriculture.
  • It could help reduce health complications and improve working conditions for farmers, who often lack proper protective gear.
• Future Plans:
  • Awareness campaigns will be conducted to inform farmers about this protective technology.
  • Efforts are underway to make the kit more affordable as demand increases.

In News:

The Credit Guarantee Scheme for e-NWR based Pledge Financing (CGS-NPF), launched by Union Minister Pralhad Joshi aims to support farmers by facilitating post-harvest finance using electronic negotiable warehouse receipts (e-NWRs). This initiative is part of the government’s efforts to minimize distress selling and ensure financial security for farmers, particularly small and marginalized ones.

Key Features of the Scheme:

• Total Corpus: ?1,000 crore for post-harvest finance.
• Loan Coverage:
  • Agricultural purposes: Loans up to ?75 lakh.
  • Non-agricultural purposes: Loans up to ?200 lakh.
• Eligible Borrowers: Small and marginal farmers, women, SC/ST/PwD farmers, MSMEs, traders, Farmer Producer Organizations (FPOs), and farmer cooperatives.
• Eligible Institutions: All scheduled and cooperative banks.
• Guarantee Coverage:
  • Small and marginal farmers/Women/SC/ST/PwD: 85% for loans up to ?3 lakh, and 80% for loans between ?3 lakh to ?75 lakh.
  • Other borrowers: 75% coverage for loans up to ?200 lakh.
• Risks Covered: Both credit risk and warehouseman risk.
• Guarantee Fees: 0.4% per annum for farmers, and 1% per annum for non-farmers.

Objectives:

• Minimize distress selling: By providing easy access to loans post-harvest, the scheme helps farmers avoid selling produce at low prices due to cash crunches.
• Instill confidence in banks: The scheme provides a guarantee cover to lenders, encouraging them to offer loans against e-NWRs.
• Encourage warehouse registration: The scheme emphasizes the need for more warehouses, particularly those closer to farmland, to improve accessibility for farmers.

About e-NWRs:

• e-NWRs are digital versions of traditional warehouse receipts that enable farmers to pledge stored commodities as collateral for loans.
• These receipts are governed by the Warehousing (Development and Regulation) Act of 2007, and since 2017, e-NWRs have been mandated for use in transactions related to agricultural produce stored in WDRA-accredited warehouses.

Expected Impact:

• This scheme is expected to boost post-harvest lending, with a target of increasing lending to ?5.5 lakh crore in the next decade.
• It will improve farmers’ income, reduce dependence on informal credit sources, and foster better financial inclusion.
• Additionally, it will create a more reliable supply chain for agricultural produce, enhancing food security.

Future Targets:

• Increase the number of registered warehouses under the WDRA to 40,000 in the next 1–2 years.
• Use platforms like e-Kisan Upaj Nidhi to streamline the lending process and avoid repeated visits to banks.

In News:

Recently, the Government of India and the Asian Development Bank (ADB) signed a $98 million loan agreement to enhance horticulture crop productivity by improving plant health management. This initiative is part of India’s Atmanirbhar Clean Plant Programme (CPP), aiming to provide farmers with access to certified disease-free planting materials to improve yields, quality, and resilience, particularly against climate change impacts.

Key Highlights of the Loan Agreement

• Objective: Improve access to certified, disease-free planting materials for horticulture crops.
• Implementation: The project will be implemented by the Ministry of Agriculture and Farmers Welfare through the National Horticulture Board (NHB) and the Indian Council of Agricultural Research (ICAR).
• Focus: The initiative will enhance farmers’ productivity, resilience to climate change, and pest/disease management through the Atmanirbhar Clean Plant Programme (CPP).

About the Atmanirbhar Clean Plant Programme (CPP)

The Atmanirbhar Clean Plant Programme aims to tackle critical challenges in horticulture by ensuring farmers have access to high-quality, virus-free planting materials. The program is designed to:

• Enhance crop yields and quality.
• Promote climate-resilient varieties to help farmers adapt to rising temperatures and extreme weather events.
• Safeguard the environment by controlling plant diseases and pests proactively.

Key Components of the CPP

• Clean Plant Centers (CPCs): Establishment of nine world-class CPCs across India, equipped with advanced diagnostic labs and tissue culture facilities to maintain disease-free foundation planting materials.
• Certification Framework: A robust certification system will be introduced to ensure accountability in planting material production, including accreditation for private nurseries.
• Climate Resilience: Focus on developing and disseminating climate-resilient plant varieties, addressing the growing concerns over extreme weather events and changing pest behavior due to climate change.

Significance of the Loan Agreement

• Climate Adaptation: The project will help farmers mitigate the effects of climate change, including unpredictable weather patterns and altered pest/disease behaviors.
• Economic Impact: The initiative aligns with India's vision of self-reliance in horticulture (Atmanirbhar Bharat), boosting agricultural productivity and sustainability.
• Long-term Benefits: Improved farm productivity, sustainability, and economic well-being for farmers, especially in the face of climate change.

Global Horticulture Significance

• India’s Position: India is the second-largest producer of fruits and vegetables globally, contributing 33% to the agricultural GDP.
• Land Coverage: Horticulture occupies 18% of India’s agricultural land, yet its production surpasses that of food grains.

Implementation and Impact

• Implementation Period: The project will be executed from 2024 to 2030, with 50% financial assistance from ADB.
• Institutional Strengthening: The initiative will bolster India’s ability to manage plant health, integrating advanced diagnostic techniques and capacity-building for horticulture professionals.

In News:

Govt Unveils ‘Jalvahak’ To Boost Inland Waterways, Cargo Movement Incentivised on NW1, NW2 & NW16

Key Highlights:

• Launch of 'Jalvahak' Scheme:
  • Launched by: Union Minister for Ports, Shipping & Waterways, Shri Sarbananda Sonowal, on December 15, 2024.
  • Objective: The scheme aims to promote the use of inland waterways for long-haul cargo transportation, reduce logistics costs, and alleviate congestion in road and rail networks.
• Targeted Waterways:
  • The scheme focuses on three major National Waterways (NWs):
    • NW 1: River Ganga
    • NW 2: River Brahmaputra
    • NW 16: River Barak
• Incentives:
  • The scheme offers up to 35% reimbursement on operating expenses for cargo transported over 300 km via these waterways, particularly using the Indo-Bangladesh Protocol Route (IBPR).
  • Encouraging Private Operators: The scheme also incentivizes the hiring of vessels owned by private operators to promote competition and efficiency.
• Scheduled Cargo Service:
  • Service Launch: Fixed, scheduled cargo vessel services have been introduced, running between key locations:
    • Kolkata - Patna - Varanasi - Patna - Kolkata (for NW 1)
    • Kolkata - Pandu (Guwahati) (for NW 2 via IBPR)
  • Transit Times: Predefined and fixed for efficiency:
    • Kolkata to Patna: 7 days
    • Patna to Varanasi: 5 days
    • Kolkata to Varanasi: 14 days
    • Kolkata to Pandu: 18 days
    • Pandu to Kolkata: 15 days
• Economic and Environmental Impact:
  • Cargo Shift Target: The initiative aims to shift 800 million tonne-kilometres of cargo by 2027.
  • Growth Projections:
    • 200 million tonnes of cargo by 2030.
    • 500 million tonnes by 2047, supporting the Blue Economy and Atma Nirbhar Bharat initiatives.
  • The move to waterways aims to reduce the pressure on India's roads and rail systems, contributing to a more sustainable and cost-effective logistics system.
• Strategic Goals:
  • Modal Shift: The scheme seeks to achieve a shift of 800 million tonne-kilometres by 2027 with an investment of ?95.4 crores.
  • Sustainability: Inland waterways are considered an environmentally friendly, efficient, and low-cost transportation mode, with a focus on sustainability.
  • Logistics Optimization: This initiative is expected to help optimize supply chains for major shipping companies, freight forwarders, and trade bodies involved in bulk and containerized cargo.
• Implementation Agencies:
  • Inland Waterways Authority of India (IWAI): The main body responsible for the development and regulation of inland waterways.
  • Inland & Coastal Shipping Limited (ICSL): A subsidiary of the Shipping Corporation of India, responsible for the operation of vessels.
• Broader Impact:
  • Economic Growth: The scheme is expected to foster economic growth by improving logistics efficiency.
  • Decongestion: The initiative aims to decongest the road and rail transport systems, facilitating smoother movement of cargo.
  • Regional Connectivity: Enhances connectivity, particularly in eastern India, benefiting areas along the Ganga, Brahmaputra, and Barak rivers.
• About the National Waterways:
  • India has 14,500 km of navigable inland waterways, which include rivers, canals, and backwaters. These waterways are significantly under-utilized compared to other countries.
  • The National Waterways Act, 2016 declared 111 waterways (including both existing and newly identified ones) for navigation.
• The Jalvahak scheme is part of India's broader strategy to unlock the potential of its inland waterways, offering an efficient, economical, and environmentally sustainable alternative for cargo transport.

In News:

India has reached a historic milestone, surpassing $1 trillion in foreign direct investment (FDI) inflows since April 2000. This achievement highlights India’s growing status as a major global investment hub and is further validated by a 26% increase in FDI inflows, which reached $42.1 billion during the first half of FY 2024-25.

Key Highlights of India’s FDI Growth:

• $1 Trillion Milestone: India has attracted a total of $1 trillion in FDI from April 2000 to September 2024. This figure includes equity, reinvested earnings, and other capital inflows.
• 26% Growth in FDI: FDI inflows surged by 26% in the first half of FY 2024-25, totaling $42.1 billion.
• Top Investors: Major investors include Mauritius (25%), Singapore (24%), and the United States (10%). These countries benefit from favorable tax treaties with India, boosting investment.
• Dominant Sectors: FDI has flowed into sectors like services, manufacturing, technology, and telecommunications, with significant investments also in pharmaceuticals, automobile, and construction development.

Factors Behind India’s FDI Success:

• Policy Reforms: India’s liberalized FDI policies, such as allowing 100% FDI in most sectors under the automatic route, have attracted foreign capital. Key reforms like abolishing angel tax and reducing corporate tax rates in the Income Tax Act of 2024 have also enhanced investor confidence.
• Business Environment: India’s rise in global competitiveness is evident in its improvement in rankings. It moved from 43rd to 40th in the World Competitiveness Index 2024 and climbed to 40th in the Global Innovation Index 2023, up from 81st in 2015.

• Investor Confidence: The government’s efforts, including initiatives like "Make in India", Goods and Services Tax (GST), and sector-specific incentives, have fostered a conducive environment for investment.
• Global Investment Standing: India has been the third-largest recipient of greenfield projects globally and saw a 64% increase in international project finance deals.

Contribution of Mauritius and Singapore:

• Mauritius and Singapore lead as the primary sources of FDI into India. Their favorable tax treaties with India make them attractive gateways for foreign investments. Mauritius accounted for 25%, and Singapore for 24% of the total FDI inflows.

Key Sectors Attracting FDI:

• Services Sector: Significant growth in services, especially financial services, has attracted substantial foreign investments.
• Manufacturing and Technology: These sectors have benefited from policies like the Production-Linked Incentive (PLI) schemes, which encourage foreign investments in high-tech manufacturing.
• Telecommunications and Pharmaceuticals: India’s growing digital ecosystem and strong pharmaceutical industry continue to attract international investments.

Importance of FDI for India:

• Infrastructure Development: FDI plays a crucial role in financing infrastructure projects, helping meet the country’s significant infrastructure needs.
• Balance of Payments: FDI helps bridge India’s current account deficit, ensuring stable foreign exchange reserves.
• Technology Transfer and Employment: Foreign investments bring advanced technology and create jobs, boosting productivity across sectors.
• Currency Stability: FDI supports the Indian Rupee in global markets by injecting foreign capital.

Challenges:

Despite the positive trends, India faces challenges such as geopolitical tensions, regulatory issues, global economic uncertainty, and infrastructure bottlenecks that can affect investor sentiment and capital inflows.

Way Ahead:

• Focus on Infrastructure: Continued investment in infrastructure development, including public-private partnerships (PPPs), will be crucial for sustained economic growth.
• Workforce Skilling: Collaborative efforts to upskill the workforce will ensure that India can meet the evolving demands of industries.
• Research and Development: Strengthening R&D and innovation will enhance India’s productivity and global competitiveness.

In News:

Recently, the Government of India announced the appointment of Sanjay Malhotra as the 26th Governor of the Reserve Bank of India (RBI). He replaces Shaktikanta Das, whose six-year tenure ends on December 10, 2024.

Background of Sanjay Malhotra:

• Education & Early Career: Sanjay Malhotra is a 1990-batch IAS officer from the Rajasthan cadre. He holds a degree in Computer Science Engineering from the Indian Institute of Technology (IIT) Kanpur and a Master’s in Public Policy from Princeton University.
• Professional Experience: Malhotra has over 33 years of experience in various sectors including power, finance, taxation, information technology, and mines. He is currently serving as the Revenue Secretary in the Ministry of Finance, a position he has held since October 2022. Prior to this, he was Secretary of the Department of Financial Services.
• Monetary Policy and Challenges: As RBI Governor, Malhotra will inherit the responsibility of steering India's monetary policy, especially as inflation has been a persistent issue and economic growth has slowed. His first monetary policy review is expected in February 2025.

About the Appointment Process:

RBI Governors are appointed by the Government of India, and the appointment process involves the Financial Sector Regulatory Appointment Search Committee, which includes the Cabinet Secretary, the current RBI Governor, the Financial Services Secretary, and two independent members. The committee prepares a list of eligible candidates, interviews them, and the final decision is made by the Cabinet Committee on Appointments, chaired by the Prime Minister.

RBI Governors Eligibility Criteria

• The RBI Act, 1934 does not mention any specific qualification for the governor. People with different educational backgrounds were selected to head the institution. However, the governor traditionally is either a civil services personnel or an economist.
• Candidates should have prior experience in areas such as:

• Working with the International Monetary Fund (IMF) or World Bank.
• Serving as Chairman or General Manager of a bank.
• Holding significant positions in reputable financial or banking organizations.
• Working in the Ministry of Finance of the Government of India.
• The candidate must be an Indian citizen aged 35 years or older.
• The candidate cannot be a member of Parliament, State Legislature, or hold any other office for profit

Key Responsibilities of the RBI Governor:

• Monetary Policy: The RBI Governor chairs the Monetary Policy Committee (MPC), which is responsible for setting benchmark interest rates and managing inflation.
• Regulation of Financial Institutions: The Governor oversees the regulation of banks, non-banking financial companies (NBFCs), and other financial institutions.
• Currency Management: The Governor ensures the proper issuance of currency and the withdrawal of unfit notes.
• Crisis Management and Policy Execution: The Governor is pivotal in managing financial crises and ensuring the execution of policies related to foreign exchange and financial inclusion.

In News:

• Governor Shaktikanta Das clarified that India is not pursuing "de-dollarisation," but rather aiming to diversify risk in trade. Measures like local currency trade agreements and Vostro accounts are intended to reduce reliance on the US dollar without eliminating it entirely.
• Objective: The goal is to de-risk India's trade, not to fully replace the dollar, especially amidst rising geopolitical tensions.

Key Highlights:

Vostro Accounts and Local Currency Trade:

• Vostro Accounts: These accounts, held by foreign banks in Indian rupees, facilitate transactions in local currencies, helping mitigate the risks of dollar dependency.
• International Currency Trade: By promoting trade in local currencies, the RBI seeks to reduce exposure to fluctuations in the dollar's value. However, these efforts have faced challenges due to India’s limited international presence in goods and services trade.

Gold Purchases by Central Banks:

• Surge in Gold Purchases: Global central banks, including the RBI, have significantly increased gold holdings. India added 27 tonnes in October 2024 alone, the largest increase among central banks.
• Motivations for Gold: The surge in gold buying reflects growing concerns about geopolitical risks, including the Ukraine war, and the potential for secondary sanctions. Gold is seen as a safe haven asset that diversifies reserves away from the US dollar.

Decline in Dollar Dominance:

• Global Shift: The share of the US dollar in global reserves has been gradually declining, partly due to the rise of the Chinese yuan. Central banks are increasingly turning to gold and alternative currencies as part of a diversification strategy.
• Impact on Emerging Markets: Countries like India are particularly motivated to reduce reliance on the dollar due to geopolitical tensions and economic vulnerabilities linked to the dollar’s dominance.

India’s Domestic Currency Trade Initiatives:

• Trade with Russia and UAE: India is actively exploring trade in domestic currencies with countries like Russia and the UAE to reduce dependence on the dollar. However, these efforts have faced slow uptake due to India’s trade deficit with most countries except the US.
• Challenges in Adoption: Despite efforts to internationalize the rupee, high transaction costs and lack of sufficient demand for rupee-based trade are significant barriers.

BRICS and Shared Currency Discussions:

• Geopolitical Complexity: BRICS nations, due to their geographical and economic diversity, have discussed the possibility of a shared currency, but no consensus has been reached.
• Reluctance Toward Yuan: India has resisted using the Chinese yuan for transactions, particularly for Russian oil imports, despite the yuan’s growing acceptance. This reflects India’s desire to maintain economic sovereignty and avoid over-reliance on a single currency.

Regional Implications of Dollar Volatility:

• Neighbourhood Impact: Countries like Sri Lanka, Bangladesh, Nepal, and Pakistan have experienced significant financial distress due to declining dollar reserves and surging oil prices, exacerbated by the Ukraine war.
• India’s Resilience: India’s strong dollar reserves have helped it maintain economic stability, but the country remains cautious of dollar volatility, particularly as oil prices rise.

Conclusion:

• Strategic Balance: India’s approach reflects a strategic balance of mitigating risks while ensuring global trade stability. The RBI’s emphasis on gold accumulation and pushing for rupee-based trade demonstrates a desire to reduce exposure to the dollar, but challenges like trade deficits and high transaction costs still hinder the full realization of these goals.
• Economic Sovereignty: Through these measures, India seeks to safeguard its economic sovereignty and financial stability in an increasingly unpredictable global economy.

In News:

The Reserve Bank of India (RBI) has recently made significant monetary policy decisions that could have a broad impact on the economy.

Key Highlights:

Cut in Cash Reserve Ratio (CRR)

• CRR Reduction: The RBI has reduced the CRR by 50 basis points (bps), from 4.5% to 4%.
• Impact on Banks: This move will free up ?1.16 lakh crore in liquidity, which banks can use to lend, boosting the credit flow in the economy.
• Objective: The CRR cut is aimed at easing the liquidity stress in the financial system, which has been tightening due to RBI's foreign exchange interventions.
• Bank Benefits: Banks will benefit as they don’t earn interest on the CRR, and the extra liquidity may help them reduce deposit rates. Additionally, it may encourage banks to pass on benefits to borrowers, particularly in terms of lending rates.

Repo Rate Kept Unchanged at 6.5%

• Decision: The MPC decided to keep the key policy rate, the Repo rate, unchanged at 6.5%, continuing its stance for the 11th consecutive meeting.
• Reasons for Keeping Repo Rate Steady:
  • Persistent inflation, particularly food prices, is a key concern. Despite strong growth in sectors like rural consumption, inflation remains high and continues to affect disposable income.
  • RBI Governor emphasized that durable price stability is essential for strong, sustained economic growth.

Impact on Borrowers

• Borrowing Costs: With the Repo rate unchanged, external benchmark lending rates (EBLR) linked to the Repo rate will not rise, providing relief to borrowers by keeping Equated Monthly Installments (EMIs) stable.
• Deposit Rates: However, the CRR cut may lead to a marginal reduction in deposit rates due to increased liquidity in the system.

Economic Growth Forecast Adjusted

• Reduced GDP Growth Estimate: The RBI has downgraded the GDP growth forecast for FY25 to 6.6%, down from the earlier estimate of 7.2%. This revision comes after the economy showed signs of slowdown in the second quarter of FY25.
• Growth Outlook: Despite the downgrade, the RBI remains cautiously optimistic about recovery driven by festive demand and rural consumption. Governor Das indicated that the slowdown had likely bottomed out and the economy is set to recover in the coming quarters.

Inflation Forecast Raised

• Inflation Outlook: The inflation estimate for FY25 has been revised upward to 4.8%, compared to the earlier forecast of 4.5%. This is largely due to rising food prices, which surged to a 14-month high of 6.21% in October.
• Inflationary Pressures: The MPC noted that inflation has remained above the RBI’s target of 4%, primarily driven by food inflation. As inflation impacts consumption, the RBI aims to balance growth support with inflation management.

Monetary Policy Stance

• Neutral Stance Retained: The RBI has maintained a ‘neutral’ stance, meaning it is neither tightening nor easing monetary policy drastically, focusing instead on bringing inflation closer to its target of 4%.
• Inflation Control: While the RBI is aware of the economic slowdown, it continues to prioritize inflation control to ensure price stability and support sustainable growth.

Global and Domestic Economic Context

• Global Factors: The RBI has also been cautious about global developments, including capital outflows and the impact of U.S. monetary policy on the Indian economy. A rate cut could have further weakened the rupee by narrowing the interest rate differential with the U.S.
• Domestic Concerns: Domestically, the economy faces challenges such as weak manufacturing growth and high inflation. The GDP growth in Q2 FY25 dropped to 5.4%, a seven-quarter low, highlighting concerns over demand and inflationary pressures.

In News:

The PM Surya Ghar: Muft Bijli Yojana, the world’s largest domestic rooftop solar initiative, is transforming India’s energy landscape with a bold vision to supply solar power to one crore households by March 2027.

Key Details:

Targeted Installations:

• 10 lakh installations by March 2025.
• 1 crore installations by March 2027.

Subsidy and Financing:

• Offers up to 40% subsidy for rooftop solar installations based on household electricity consumption.
• Collateral-free loans available for up to 3 kW solar systems at a 7% interest rate.

Key Benefits:

The PM Surya Ghar: Muft Bijli Yojana offers several significant benefits to participating households:

• Free Electricity for Households: The scheme provides households with free electricity through the installation of subsidized rooftop solar panels, significantly reducing their energy costs.
• Reduced Electricity Costs for the Government: By promoting the widespread use of solar power, the scheme is expected to save the government an estimated ?75,000 crore annually in electricity costs.
• Increased Use of Renewable Energy: The scheme encourages the adoption of renewable energy sources, contributing to a more sustainable and environmentally friendly energy mix in India.
• Reduced Carbon Emissions: The transition to solar energy under this scheme will help lower carbon emissions, supporting India's commitment to reducing its carbon footprint.

Eligibility Criteria:

1. The applicant must be an Indian citizen.

2. Must own a house with a roof that is suitable for installing solar panels.

3. The household must have a valid electricity connection.

4. The household must not have availed of any other subsidy for solar panels.

Impact

The   PM Surya Ghar: Muft Bijli Yojana is expected to have far-reaching outcomes, both for individual households and the nation as a whole:

• Household Savings and Income Generation: Households will benefit from significant savings on their electricity bills. Additionally, they will have the opportunity to earn extra income by selling surplus power generated by their rooftop solar systems to DISCOMs. For instance, a 3-kW system can generate over 300 units per month on average, providing a reliable source of energy and potential revenue.
• Expansion of Solar Capacity: The scheme is projected to add 30 GW of solar capacity through rooftop installations in the residential sector, significantly contributing to India's renewable energy goals.
• Environmental Benefits: Over the 25-year lifetime of these rooftop systems, it is estimated that the scheme will generate 1000 BUs of electricity while reducing CO2 emissions by 720 million tonnes, making a substantial positive impact on the environment.
• Job Creation: The scheme is also expected to create approximately 17 lakh direct jobs across various sectors, including manufacturing, logistics, supply chain, sales, installation, operations and maintenance (O&M), and other services, thereby boosting employment and economic growth in the country.

Model Solar Village

• Under the "Model Solar Village" component of the scheme, the focus is on establishing one Model Solar Village per district throughout India.
• This initiative aims to promote solar energy adoption and empower village communities to achieve energy self-reliance.
• An allocation of ?800 crore has been designated for this component, with ?1 crore provided to each selected Model Solar Village.
• To qualify as a candidate village, it must be a revenue village with a population of over 5,000 (or 2,000 in special category states). Villages are selected through a competitive process, evaluated on their overall distributed renewable energy (RE) capacity six months after being identified by the District Level Committee (DLC).
• The village in each district with the highest RE capacity will receive a central financial assistance grant of ?1 crore.
• The State/UT Renewable Energy Development Agency, under the supervision of the DLC, will oversee the implementation, ensuring these model villages successfully transition to solar energy and set a benchmark for others across the country.

In News:

The app was developed by the ICAR-Central Institute of Freshwater Aquaculture (ICAR-CIFA) with support from the Pradhan Mantri MatsyaSampada Yojana (PMMSY) under the Ministry of Fisheries, Animal Husbandry & Dairying, Government of India.

Key Highlights:

• Target Audience: The app caters to hobbyists, farmers, and professionals in the ornamental fish industry.
• Multilingual Support: The app offers content in eight Indian languages, making it accessible to a broad and diverse audience.
• Main Objectives:

• Provide information on popular ornamental fish species and their care.
• Promote local aquarium businesses through dynamic directories.
• Enhance knowledge of ornamental aquaculture techniques for fish farmers and shop owners.
• Serve as an educational tool for newcomers and professionals in the ornamental fish industry.

• Salient Features:
  • Multilingual Content: Ensures broader reach and user accessibility.
  • Comprehensive Fish Information: Offers detailed guidance on fish care, breeding, and maintenance.
  • Find Aquarium Shops Tool: A directory updated by shop owners, helping users find reliable local aquarium shops and promoting local businesses.
• Educational Modules:
  • Basics of Aquarium Care: Covers key aspects like aquarium types, filtration, lighting, feeding, and maintenance.
  • Ornamental Aquaculture: Focuses on breeding and rearing ornamental fish, particularly for farmers.

• Economic and Social Impact:
  • Promoting Local Businesses: The app encourages economic growth by increasing visibility for local aquarium shops and creating opportunities for business owners.
  • Authenticity and Reliability: Users can access verified information, reducing the reliance on unverified sources and promoting healthier aquariums.
  • Sustainability and Growth: The app’s features are designed to foster sustainability and growth in the ornamental fish trade by providing reliable information and empowering users.

Pradhan Mantri MatsyaSampada Yojana (PMMSY):

• Objective: Aimed at transforming the fisheries sector, improving fish production, productivity, quality, technology, infrastructure, and management, while strengthening the value chain and promoting the welfare of fishers.
• Launch: The scheme was launched in 2020 with an investment of Rs. 20,050 crores for a 5-year period (2020-21 to 2024-25).
• Focus Areas:
  • Inland fisheries and aquaculture.
  • Fisheries management and regulatory framework.
  • Infrastructure and post-harvest management.
  • Doubling fishers' and fish farmers' incomes.
• Components:
  • Central Sector Scheme (CS): Fully funded by the central government.
  • Centrally Sponsored Scheme (CSS): Partially funded by the central government and implemented by states.
• Sub-Schemes:
  • Pradhan Mantri MatsyaKisanSamridhiSah-Yojana (PM-MKSSY): Launched under PMMSY to formalize the fisheries sector and support micro and small enterprises with over Rs. 6,000 crore investment (FY 2023-24 to 2026-27).
  • Beneficiaries: Includes fishers, farmers, fish vendors, fisheries cooperatives, SC/STs, women, differently-abled persons, state and central entities, and private firms.