In News:

The Union Budget 2026-27 marks a watershed moment in Indian agriculture, moving away from a cereal-centric approach toward a regionally differentiated strategy for High-Value Crops (HVCs). By focusing on the unique agro-climatic strengths of the coastal, North Eastern, and Himalayan belts, the government aims to transform farmers from subsistence growers into global agri-entrepreneurs.

Understanding High-Value Crops (HVCs)

High-value crops include horticultural produce such as fruits, vegetables, spices, medicinal plants, and aromatic woods. They are "high value" because they yield significantly higher net returns per hectare compared to staples like paddy or wheat.

Horticulture: The New Economic Nucleus

• GVO Contribution: Horticulture now accounts for approximately 37% of the Gross Value Output (GVO) within the agricultural crops sub-sector.
• Growth Trajectory: With a growth rate of 4.45% over the last decade, horticulture is the fastest-growing segment of Indian agriculture.
• Global Leadership: India is the world’s largest producer of onions and shallots (22.42% global share) and ranks second globally in the production of vegetables, fruits, and potatoes.
• Output Milestone: Total horticultural production reached a record 370.74 million tonnes in 2024-25.

Regionally Anchored Diversification Strategies

The 2026-27 strategy leverages specific geographic advantages to maximize export potential:

1. The Coastal Frontier (Coconut, Cashew, Cocoa)

• Coconut: India is the world’s second-largest producer, supporting 30 million livelihoods. The focus is on replacing senile (aging) plantations with high-yielding varieties.
• Cocoa Intercropping: To optimize land use, cocoa is being promoted as an intercrop in coconut and arecanut groves, utilizing the 40-50% sunlight penetration that otherwise goes to waste.
• Export Value: In 2024-25, cashew and cocoa exports combined for a staggering USD 664.75 million.

2. The North Eastern Hub (Agarwood & "Oud")

• Agarwood Dominance: India hosts 150 million agarwood trees, with 90% in the North East.
• Economic Potential: Tripura alone targets an annual turnover of ?2,000 crore by tapping into the global luxury fragrance (Oud) market, aligned with CITES export quotas.

3. The Himalayan and Hilly Regions (Nuts and Fruits)

• High-Density Cultivation: Promoting high-density orchards for Walnuts, Almonds, and Chilgoza (Pine nuts) in Jammu & Kashmir and Himachal Pradesh to double tribal incomes and leverage the high demand for dry fruits.

The Multi-Dimensional Impact of Diversification

• 5F Framework Alignment: The strategy supports the Farm-to-Foreign chain, ensuring value addition at every step.
• Employment Generation: HVCs are labor-intensive, creating year-round employment in rural areas, particularly for women and tribal communities.
• Nutritional Security: Diversification improves the availability of micro-nutrients, addressing hidden hunger.
• Agro-Processing Linkages: HVCs provide the raw materials for a booming food processing industry, including virgin coconut oil, fermented cocoa, and spice extracts.

Structural Challenges and Roadblocks

Despite the potential, the transition faces several hurdles:

• Perishability & Infrastructure: Horticultural crops have a short shelf-life, necessitating a robust Cold-Chain Infrastructure to prevent massive post-harvest losses.
• High Gestation Periods: Perennial crops like sandalwood or agarwood require several years before providing returns, creating a capital gap for small farmers.
• Climate Change: Hilly regions face shifting snowfall patterns, while coastal areas are vulnerable to increasing cyclonic frequency, both of which threaten HVC yields.
• Phytosanitary Standards: To penetrate EU and US markets, Indian produce must meet stringent chemical residue and quality standards.

The Way Ahead: Towards "Viksit Bharat"

To ensure the success of this diversification, the government is focusing on:

• Digital and Geospatial Mapping: Using satellite data to monitor orchard health and predict yields.
• Farmer Producer Organizations (FPOs): Organizing the 10 million small-scale coconut farmers into FPOs to achieve economies of scale.
• Brand Building: Positioning "Indian Sandalwood" and "Indian Cashew" as premium global brands by 2030.
• Mission for Integrated Development of Horticulture (MIDH): Strengthening post-harvest management and modernizing nurseries through institutional support from boards like the Coconut Development Board.

Conclusion

The shift toward high-value crop diversification is a move from subsistence to surplus. By integrating regional agro-climatic strengths with global market demands, India is not just securing its food systems but is also empowering its farmers to become pivotal players in the global value chain. This strategy is essential for achieving the vision of a USD 5 trillion economy and a prosperous, developed India by 2047.

In News:

In a strategic move to overhaul India’s scientific landscape, NITI Aayog recently released two seminal reports: “Ease of Doing Research & Development in India” and the “Survey Report on Ease of Doing R&D in India.” These documents outline a roadmap for transforming India from a primary producer of academic papers into a global innovation hub. By addressing systemic bottlenecks, the reports aim to foster an environment of "Atmanirbhar Bharat" (Self-reliant India) through technological sovereignty.

1. Current Status of the Indian R&D Landscape

India’s research ecosystem presents a picture of significant potential coupled with structural challenges:

• Global Innovation Index (GII) 2025: India has climbed to the 38th position out of 139 economies, a notable leap from its 48th rank in 2020. It currently leads among lower-middle-income economies and the Central/Southern Asia region.
• Intellectual Property: India ranks 6th globally in patent applications. The patent-to-GDP ratio—a key indicator of economic impact—surged from 144 in 2013 to 381 in 2023.
• Funding Deficit: Despite growth, Gross Expenditure on R&D (GERD) remains stagnant at 0.64%–0.7% of GDP. This is significantly lower than global leaders like the US (~3.5%), China (~2.4%), or South Korea (~4.8%).
• Researcher Density: India has only 260 full-time equivalent (FTE) researchers per million people, compared to over 4,000 in the US and UK, highlighting a critical human capital gap.

2. The ROPE Framework: Key Highlights of the Reports

The core strategy proposed by NITI Aayog revolves around the ROPE concept (Removing Obstacles and Promoting Enablers) to streamline the scientific ecosystem.

• Dismantling Bureaucracy: The reports identify outdated procurement rules and "L1" (Lowest Bidder) tender systems as major hurdles. They advocate for a shift toward trust-based, outcome-oriented systems that grant researchers operational autonomy.
• "Lab-to-Market" Translation: A shift from basic knowledge creation to "mission-mode R&D" is emphasized. This ensures that fundamental research is translated into commercial technologies and practical applications.
• Democratizing Funding: To bridge the investment gap, the reports suggest leveraging Corporate Social Responsibility (CSR) funds to support startups and emerging technologies, moving away from a purely public-sector-funded model.

3. Critical Challenges Hindering Growth

• Inverted Funding Structure: In leading global economies, the private sector drives 70% of R&D funding. In India, the government bears over 60% of the burden, while private participation remains disproportionately low.
• Fragmented Linkages: The University-Industry-Government (UIG) triad is siloed. Universities often focus on academic citations rather than market-ready indigenous solutions, leading to a reliance on imported technology.
• The "Brain Drain": Lack of merit-based career progression and rigid institutional seniority systems often push top-tier STEM talent to seek opportunities in Western countries.
• Research Quality vs. Quantity: While India produces a high volume of papers, the Citation Network Citation Index (CNCI) and contributions to elite journals (e.g., Nature) remain below global standards.

4. Roadmap for Strengthening the Ecosystem

To evolve into a global scientific powerhouse, the following measures are recommended:

• Financial Restructuring: Push GERD to 1.5%–2% of GDP. Ensure the swift implementation of the Anusandhan National Research Foundation (ANRF) to seed research in state universities, decentralizing innovation beyond elite institutions like the IITs.
• Procurement Reform: Exempt critical scientific equipment from rigid tender rules to ensure researchers receive materials in days rather than months.
• Institutionalizing Technology Transfer: Establish Technology Transfer Offices (TTOs) in major universities to help scientists navigate IP laws and negotiate commercial licensing.
• Strategic Mission-Mode Projects: Concentrate resources on high-priority domains like Quantum Computing, Green Hydrogen, Semiconductors, and AI.

Conclusion

The NITI Aayog reports underscore that India’s transition to a high-income economy is inextricably linked to its R&D prowess. By shifting from a culture of administrative overreach to one of scientific trust, and by bridging the gap between laboratories and the marketplace, India can secure its position as a global leader in the 4th Industrial Revolution.

In News:

India’s geographical diversity makes it highly susceptible to a range of natural disasters, from cyclones and floods to avalanches and droughts. In a landmark shift toward technology-led resilience, the Government of India has significantly expanded the role of Artificial Intelligence (AI) and Machine Learning (ML) following the enactment of the Disaster Management (Amendment) Act, 2025. This legislative and technological synergy aims to move the nation from a "reactive" relief-centric approach to a "proactive" predictive-modeling stance.

The Disaster Management Cycle & AI Integration

AI is being integrated across all four stages of the disaster management cycle to enhance precision and reduce human casualty.

A. Preparedness and Early Warning

The India Meteorological Department (IMD) has pioneered the use of AI/ML under Mission Mausam to bridge the gap between data collection and actionable intelligence.

• Seven-Day Forecasts: Advanced ML models now provide 7-day advance weather predictions with higher local accuracy.
• Cyclone Tracking: AI-enhanced satellite imagery analysis allows for better prediction of cyclone intensity and landfall coordinates.

B. Mitigation and Hydrological Modelling

The Central Water Commission (CWC) has deployed AI to tackle India's most frequent disaster: flooding.

• Short-Range Forecasting: AI models process real-time rainfall data and river discharge levels to provide short-range flood alerts.
• Digital Advisories: Real-time flood advisories are disseminated via integrated digital portals, utilizing rainfall-based hydrological modelling to warn downstream populations.

C. Risk Mapping and Decision Support

The National Disaster Management Authority (NDMA) has developed sophisticated tools to assist local administrators.

• Web-DCRA & DSS: The Web-based Dynamic Composite Risk Analysis and Decision Support System (DSS) allows officials to visualize potential impact zones.
• Dynamic Risk Atlases: These atlases use AI to factor in real-time variables like population density and infrastructure strength—to optimize evacuation planning during cyclones.

D. Specialized Hazard Detection: Geo-Intelligence

Specialized agencies are using AI for niche topographical hazards:

• National Remote Sensing Centre (NRSC): Uses AI-processed satellite data to develop Flood Hazard Atlases, identifying regions that are chronically vulnerable.
• DRDO (Defence Research and Development Organisation): Employs AI for Avalanche Forecasting in high-altitude Himalayan regions. These autonomous systems detect remote-sensing-based changes in snowpack stability to predict slides before they occur.

Key Provisions: The Disaster Management (Amendment) Act, 2025

The 2025 Amendment serves as the legal backbone for these technological interventions:

1. Data Centralization: It mandates the creation of a National Disaster Database where AI can draw "training data" from historical disasters.
2. Statutory Integration of Tech: Explicitly recognizes the role of AI/ML in the official protocols for early warning and risk assessment.
3. Private Sector Participation: Encourages partnerships with tech firms for the development of "Disaster-Tech" solutions.

Challenges and Way Forward

While AI offers immense potential, several hurdles remain for India:

• Data Quality: AI is only as good as the data it is trained on; sparse historical data in certain remote regions can lead to "algorithmic bias."
• Last-Mile Connectivity: An AI-generated warning is only effective if it reaches a farmer in a remote village in time.
• Ethics of Automation: Ensuring that human oversight remains central to life-and-death evacuation decisions.

Conclusion

The integration of AI into disaster management represents a paradigm shift in India's governance. By leveraging tools from the IMD, CWC, and DRDO, India is building a "Digital Shield" against natural calamities. For a developing economy, this transition is not merely a technological upgrade but a vital necessity to protect its human capital and economic infrastructure from the increasing volatility of climate change.

In News:

The United Nations has officially designated 2026 as the International Year of the Woman Farmer (IYWF). This global recognition highlights the indispensable role women play in maintaining global food security and rural resilience. In India, where agriculture is the backbone of the economy, women are the primary drivers of the sector. Despite being historically categorized as "invisible laborers," a paradigm shift is underway to recognize them as independent entrepreneurs and technological leaders.

To mark this transition, India recently hosted the Global Conference on Women in Agri-Food Systems (GCWAS–2026) in New Delhi, focusing on gender-responsive policies and the economic inclusion of women in the $5 trillion economy vision.

The Indian Context: Statistical Overview

The "feminization of agriculture" in India is reflected in the sheer scale of female participation in the rural workforce:

• Livelihood Dominance: Approximately 80% of all economically active women in rural India are employed in the agricultural sector.
• Workforce Dynamics: Of the rural female workforce, 33% serve as agricultural laborers and 48% are self-employed farmers.
• Financial Inclusion: Since its inception, the PM-KISAN scheme has disbursed over ?1.01 lakh crore to women, who constitute roughly 25% of the total beneficiaries.
• Collectivization: The movement toward formal business structures is gaining momentum, with 1,175 Farmer Producer Organizations (FPOs) currently boasting 100% women shareholders.

Multi-Dimensional Roles and Contributions

Women are involved across the entire agricultural value chain, performing roles that range from traditional labor to high-tech service provision.

1. Crop Production and Livestock Management: Women handle the most labor-intensive pre-harvest tasks, such as sowing, weeding, and paddy transplantation. In the allied sectors, they are the primary managers of dairy, poultry, and small ruminants. The success of the Pashu Sakhi model where women provide doorstep veterinary services has been instrumental in reducing livestock mortality and increasing household income.

2. Post-Harvest Value Addition: Through Self-Help Groups (SHGs), women lead the transformation of raw produce into marketable goods. Activities like spice grinding, mushroom cultivation, and honey processing under the National Beekeeping and Honey Mission (NBHM) have significantly increased the shelf life and profitability of farm output.

3. Technological Adoption: The Namo Drone Didi Scheme is a flagship initiative providing 15,000 drones to women SHGs. This empowers them to provide high-tech services like precision liquid fertilizer and pesticide application, moving them away from manual drudgery toward skilled, service-based livelihoods.

Major Government Initiatives and Institutional Support

A robust framework of schemes and institutions supports the economic and social empowerment of women farmers:

• Mahila Kisan Sashaktikaran Pariyojana (MKSP): A sub-component of DAY-NRLM, it has supported over 4.62 crore Mahila Kisans in adopting agro-ecological practices and sustainable livestock management.
• Agriculture Infrastructure Fund (AIF): Provides debt financing with a 3% interest subvention for women-led projects to develop post-harvest facilities like cold storage and warehouses.
• Krishi Sakhi Programme: A dedicated cadre of 70,000 women para-extension workers is being trained to provide doorstep guidance on natural farming and soil health, bridging the "lab-to-land" gap.
• ICAR-Central Institute for Women in Agriculture (CIWA): Located in Bhubaneswar, this institute conducts specialized research to develop drudgery-reducing tools (like pedal-operated coconut dehuskers and maize shellers) tailored for female ergonomics.
• Modified Interest Subvention Scheme (MISS): Ensures affordable credit through Kisan Credit Cards (KCC), with the collateral-free limit increased to ?2 lakh as of 2025 to assist women who lack land titles.

Critical Challenges and Barriers

Despite their significant contributions, women farmers face systemic hurdles that hinder their full potential:

• Land Ownership and Invisibility: A majority of women do not hold formal land titles. This lack of "legal recognition" makes it difficult for them to register for government portals like PM-KISAN or access institutional bank loans that require collateral.
• Technological Mismatch: Most agricultural machinery is traditionally designed for men. The high physical drudgery associated with traditional tools continues to cause significant musculoskeletal strain.
• Knowledge and Information Gap: Agricultural extension services have traditionally targeted male heads of households. Technical training on high-yield variety (HYV) seeds or modern pesticides often fails to reach the women who are the actual implementers in the fields.
• Climate Vulnerability: Women have fewer resources to adapt to sudden climate shocks. During periods of drought, the added burden of walking longer distances for water and fodder leaves them with less time for productive farm management.

The Roadmap for IYWF 2026 and Beyond

To move from subsistence to sustainability, the following strategic interventions are necessary:

1. Digital Verification of Land: Speeding up the digital linking of land records to ensure more women can self-register for Direct Benefit Transfer (DBT) schemes.
2. Scaling Women-Led FPOs: Reaching the target of 10,000 FPOs with a focus on states like Odisha, Bihar, and Jharkhand, where women-led collectives are already thriving.
3. Gender-Sensitive Mechanization: Expanding the scope of Farm Machinery Training and Testing Institutes (FMTTIs) to specifically train women in operating and repairing small-scale, ergonomic machinery.
4. Mainstreaming Krishi Sakhis: Institutionalizing these para-professionals as the formal link between the government’s technical departments and the rural farming community.

Conclusion

The empowerment of women farmers is not just a matter of social equity but a prerequisite for India’s food security and the achievement of a $5 trillion economy. By transforming women from laborers to entrepreneurs through schemes like Namo Drone Didi and the Dalhan Aatmanirbharta Mission, India can lead the global narrative during the International Year of the Woman Farmer 2026. Strengthening women’s leadership in agriculture will ultimately create a more resilient, inclusive, and climate-smart agri-food system for the future.

In News:

The Krishi Sakhi Initiative, launched by the Agriculture Insurance Company of India Limited (AIC), is a nationwide programme aimed at promoting gender-inclusive agricultural development. It focuses on empowering women farmers through awareness, capacity building, and improved access to crop insurance mechanisms, thereby strengthening their role in India’s agrarian economy.

About the Initiative

The initiative is designed to enhance participation of women farmers in agriculture and insurance systems while promoting a gender-sensitive development approach. It seeks to bridge information gaps and improve access to institutional support, ensuring that women farmers benefit from risk mitigation tools and agricultural schemes.

Key Features

1. Nationwide Awareness Campaigns (2026)

The programme includes structured, month-wise campaigns throughout 2026, involving activities such as community outreach, awareness videos, and walkathons. These ensure continuous engagement rather than one-time interventions.

2. Capacity Building and Training

The initiative emphasises grassroots-level workshops and training sessions, focusing on:

• Crop insurance schemes and benefits
• Agricultural risk management
• Financial literacy

This helps improve informed decision-making among women farmers.

3. Social and Behavioural Outreach

It integrates agriculture with broader development through campaigns on sanitation, hygiene, and rural awareness, thereby linking farm productivity with social well-being.

Significance

The initiative is crucial in recognising women as key stakeholders in agriculture, enhancing their decision-making capacity and visibility. It strengthens the penetration of crop insurance schemes such as Pradhan Mantri Fasal Bima Yojana (PMFBY), ensuring income stability and risk reduction. Additionally, it promotes inclusive rural development by targeting marginalised women farmers and linking agriculture with broader socio-economic outcomes.

Challenges

Despite its potential, the initiative faces challenges such as low awareness levels, socio-cultural barriers, and limitations in last-mile delivery mechanisms. The digital divide further restricts access to information and services among rural women.

Way Forward

To maximise impact, there is a need for convergence with schemes like PMFBY and National Rural Livelihood Mission (NRLM), greater involvement of Self-Help Groups (SHGs), and enhanced focus on digital and financial literacy. Strengthening implementation and monitoring mechanisms will be critical.

Conclusion

The Krishi Sakhi Initiative represents a progressive step towards inclusive and sustainable agriculture. By combining awareness, capacity building, and social outreach, it has the potential to transform women farmers into key drivers of rural transformation, contributing to agricultural resilience and economic growth.

In News:

India is increasingly leveraging Artificial Intelligence (AI) as a strategic instrument for preserving cultural heritage, strengthening linguistic diversity and enabling inclusive development. Recent policy initiatives reflect a shift from passive archival preservation to active cultural participation, positioning AI as “Technology for Humanity”.

Rationale: Cultural Diversity and Digital Inclusion

India’s linguistic landscape is vast and complex. As per Census 2011, India has 22 Scheduled languages and 99 Non-Scheduled languages, besides hundreds of tribal and mother tongues. This diversity, while culturally enriching, has historically created barriers in digital access, governance and knowledge dissemination.

AI is being deployed to bridge these divides by enabling multilingual access, voice-based interaction and enhanced discoverability of cultural and knowledge assets.

Language as Digital Public Infrastructure

BHASHINI (National Language Translation Mission)

Launched in 2022, BHASHINI functions as a foundational multilingual AI infrastructure.

Key data:

• Supports voice services in 22 languages
• Provides text services in 36 languages
• Hosts 350 AI models and datasets
• Has processed over 4 billion language inferences

BHASHINI demonstrated real-time translation at Kashi Tamil Sangamam 2.0 and powered the multilingual “Kumbh Sah’AI’yak” chatbot at Maha Kumbh 2025, providing assistance in 11 languages.

Technology Development for Indian Languages (TDIL)

TDIL laid the groundwork for:

• OCR for Indian s
• Machine translation
• Speech-to-text and text-to-speech systems

It enabled scalable Indian language computing and supports platforms like BHASHINI.

Anuvadini (AICTE)

An AI-driven multilingual translation platform that:

• Translates technical and academic textbooks
• Strengthens Indian languages as mediums of higher education
• Integrates with repositories like e-KUMBH

AI for Cultural Heritage and Knowledge Systems

Gyan Bharatam Mission (2024–31)

• Approved outlay: ?482.85 crore
• Over 44 lakh manus documented in the Kriti Sampada repository
• Uses AI-based Handwritten Text Recognition (HTR) and metadata extraction
• Aims to create a National Digital Repository

This marks a transition from physical archives to shared digital access.

Gyan-Setu National AI Challenge

Focused on:

• Manu digitisation
• deciphering
• Knowledge dissemination

It generated deployable AI prototypes for heritage preservation.

Adi Vaani (Tribal Language Platform)

• Covers languages such as Santali, Bhili, Mundari and Gondi (beta phase)
• Enables real-time translation and speech tranion
• Supports subtitling of public advisories in tribal languages

This addresses the challenge of low-resource language datasets and oral traditions.

Economic Empowerment and Cultural Participation

AI is integrating artisans into digital value chains by:

• Enabling multilingual catalogues for GI-tagged products
• Providing voice-based digital interfaces for low-literacy users
• Supporting AI-based tagging for authenticity and provenance

This enhances market access while preserving cultural identity.

Key Challenges

• Digital literacy and infrastructure gaps in rural and tribal regions
• Limited datasets for endangered languages
• Manus held in private collections
• Authenticity and intellectual property concerns
• Need for offline-capable AI systems

Way Forward

Policy discourse, including NITI Aayog’s recommendations, emphasises:

• Expanding language AI as core digital public infrastructure
• Developing open-source AI models
• Creating verifiable digital credentials for artisans
• Promoting multi-stakeholder collaboration

Conclusion

With initiatives such as BHASHINI (2022) and the ?482.85 crore Gyan Bharatam Mission (2024–31), India is institutionalising AI as a guardian of its civilisational heritage. By aligning technological progress with linguistic inclusion and livelihood generation, India is transforming AI from a tool of automation into an instrument of cultural resilience and social empowerment.

In News:

The Union Budget 2026–27 was presented in Parliament by the Nirmala Sitharaman, marking her ninth consecutive Budget and the first to be prepared in Kartavya Bhawan. The fiscal blueprint is structured around three core duties or “Kartavyas” that reflect the government’s strategic priorities: accelerating and sustaining economic growth, building human capacities and fulfilling aspirations, and ensuring inclusive development across regions and communities. This framework signals an integrated approach to achieve Viksit Bharat by 2047 amid global uncertainties and domestic structural challenges.

Macro-Fiscal Framework and Priorities

For the financial year 2026–27, the Budget projects total expenditure at ?53.5 lakh crore, with non-debt receipts estimated at ?36.5 lakh crore and net tax receipts at ?28.7 lakh crore. The fiscal deficit is targeted at 4.3% of GDP, marginally lower than the revised estimate of 4.4% for 2025–26, underscoring a continued commitment to fiscal consolidation. The debt-to-GDP ratio is projected to decline to 55.6%, indicating gradual improvement in fiscal metrics.

First Kartavya: Growth, Competitiveness and Infrastructure

The Budget places strong emphasis on strengthening India’s growth engine through investment-led strategies and sector-specific interventions. Public capital expenditure is significantly enhanced to ?12.2 lakh crore, reinforcing the infrastructure build-out across transport, logistics, waterways and urban connectivity. Seven high-speed rail corridors are proposed as growth connectors, while 20 new national waterways are slated to be operational in the coming five years.

Manufacturing and strategic sectors receive focused support. The Biopharma SHAKTI initiative, with an outlay of ?10,000 crore, aims to position India as a global biopharmaceutical hub. The India Semiconductor Mission 2.0 and expanded electronics components manufacturing scheme are designed to enhance technological sovereignty and supply chain resilience. Rare earth corridors in mineral-rich states will facilitate mining, processing and value chain development. Initiatives such as the Textile Expansion and Employment Scheme and Mega Textile Parks will boost traditional and technical textiles through cluster-based financing and technology upgradation.

Special focus is accorded to legacy industry revival, with targeted schemes to modernise 200 industrial clusters, and to developing Champion SMEs backed by a ?10,000 crore growth fund. Infrastructure risk mitigation funds and monetisation of CPSE real estate are expected to catalyse private investment.

Second Kartavya: Human Capital and Aspirational Growth

The second Kartavya underscores investment in human capital. A High-Powered Education–Employment–Enterprise Standing Committee will align skill development with employment outcomes, particularly in services and future sectors. New allied health institutions and regional medical hubs are proposed to strengthen healthcare capacity and position India as a medical tourism destination. Traditional systems of medicine will be reinforced with new institutes for Ayurveda.

Education infrastructure will be expanded with university townships near industrial corridors and girls’ hostels across districts to improve access and equity. Creative industries under the Orange Economy will be catalysed through AVGC labs in schools and colleges, targeting employment generation in animation, gaming and visual effects.

Third Kartavya: Inclusive Development and Last-Mile Participation

Inclusivity is central to the third Kartavya. Major schemes are unveiled to boost farm incomes, including integrated development of reservoirs, a Coconut Promotion Scheme and Bharat-VISTAAR, an AI-enabled multilingual platform to improve agricultural decision-making. Efforts to empower divyangjan through skilling initiatives and the expansion of mental health infrastructure, including NIMHANS-2, reflect a broader social inclusion agenda.

Regional disparities are addressed through targeted infrastructure in Purvodaya States and the North-East, including tourism circuits and e-buses to enhance sustainable connectivity. Fiscal transfers through the 16th Finance Commission amount to ?1.4 lakh crore, reinforcing cooperative federalism.

Conclusion

The Union Budget 2026–27 balances growth imperatives with inclusive outcomes, reinforcing infrastructure, manufacturing, human capital, and regional equity. Anchored in the Three Kartavyas, it strives to consolidate India’s macroeconomic stability while enabling citizens to actively participate in and benefit from the development process.

In News:

Union Minister for Finance and Corporate Affairs Smt Nirmala Sitharaman presented Union Budget 2025-26 in the Parliament.

Key Highlights:

Fiscal Policy and Macroeconomic Indicators

• Total Expenditure: ?50.65 lakh crore
• Total Receipts (excl. borrowings): ?34.96 lakh crore
• Fiscal Deficit: 4.4% of GDP
• Gross Market Borrowing: ?14.82 lakh crore
• Capital Expenditure: ?11.21 lakh crore (3.1% of GDP)

Agriculture and Allied Sectors

• Prime Minister Dhan-Dhaanya Krishi Yojana: 100 low-productivity districts targeted; 1.7 crore farmers to benefit.
• Mission for Aatmanirbharta in Pulses: 6-year mission on Tur, Urad, and Masoor; NAFED/NCCF to procure for 4 years.
• Vegetables & Fruits Program: Comprehensive initiative for production, pricing, processing, and logistics.
• Makhana Board: New board in Bihar for production, value addition, and export.
• National Mission on High Yielding Seeds: To commercialize over 100 high-yielding seed varieties.
• Cotton Mission: 5-year initiative to boost productivity and Extra Long Staple (ELS) varieties.
• Fisheries: New EEZ and High Seas Framework focusing on Islands.
• Credit through KCC: Loan limit increased from ?3 lakh to ?5 lakh.
• Urea Plant in Assam: New plant at Namrup (12.7 lakh MT annual capacity).

MSMEs and Startups

• MSME Classification: Investment and turnover limits doubled (2.5x & 2x).
• Credit Cards for Micro Units: ?5 lakh limit; 10 lakh cards in year one.
• ?10,000 Cr Fund of Funds for Startups
• First-Time Entrepreneurs Scheme: Loans up to ?2 crore for 5 lakh women, SC/ST entrepreneurs.
• Footwear & Leather Sector Scheme: Aims ?4 lakh crore turnover and 22 lakh jobs.
• Toy Manufacturing Support: High-quality, eco-friendly toy ecosystem.
• Food Tech Institute: To be established in Bihar.
• National Manufacturing Mission: Across small, medium, and large units.

Infrastructure and Investment

• PPP Pipeline: 3-year project pipeline to be announced.
• ?1.5 lakh crore 50-year interest-free loans to states for CapEx.
• Urban Challenge Fund: ?1 lakh crore outlay; ?10,000 crore for FY26.
• Asset Monetization Plan 2025–30: Capital recycling worth ?10 lakh crore.
• Jal Jeevan Mission: Extended to 2028 with enhanced outlay.
• UDAN 2.0: Targeting 120 new destinations, 4 crore passengers in 10 years.
• Maritime Development Fund: ?25,000 crore; up to 49% govt contribution.
• Nuclear Energy Mission: ?20,000 crore outlay for Small Modular Reactors (SMRs).
• Greenfield Airports: Announced for Bihar.

Welfare and Social Security

• Saksham Anganwadi & Poshan 2.0: Enhanced nutritional cost norms.
• Medical Education: 10,000 new MBBS seats; 75,000 in 5 years.
• Day Care Cancer Centres: In all district hospitals; 200 in FY26.
• PM SVANidhi Revamp: ?30,000 UPI-linked credit cards.
• Online Platform Workers: E-Shram ID, PMJAY coverage.
• Urban Livelihood Scheme: For sustainable urban worker incomes.

Education and Skilling

• 50,000 Atal Tinkering Labs: Govt schools in 5 years.
• Bharatiya Bhasha Pustak Scheme: Digital books in Indian languages.
• National Skilling Centres of Excellence: With global partners.
• AI in Education: Centre of Excellence with ?500 crore outlay.
• IIT Expansion: Additional capacity for 6,500 students.

Innovation and R&D

• ?20,000 crore Innovation Fund (private-led R&D).
• Deep Tech Fund of Funds: For next-gen startups.
• PM Research Fellowships: 10,000 fellowships with higher support.
• 2nd Gene Bank: 10 lakh germplasm lines for food security.
• National Geospatial Mission
• Gyan Bharatam Mission: Conservation of 1 crore+ manuscripts.

Exports and Trade

• Export Promotion Mission: With ministerial and sectoral targets.
• BharatTradeNet (BTN): Unified platform for trade finance and docs.
• GCC Framework: Promote Global Capability Centres in Tier-2 cities.

Financial Sector Reforms

• FDI in Insurance: Raised from 74% to 100% for domestic investment.
• NaBFID Credit Enhancement Facility: For infra bonds.
• Grameen Credit Score: For SHGs and rural borrowers.
• Investment Friendliness Index: To rank states in 2025.
• Jan Vishwas Bill 2.0: Decriminalization of 100+ provisions.
• Tonnage Tax Extended: To inland vessels.
• Startups: Tax benefit eligibility extended to incorporation by 1 April 2030.

Taxation Reforms

Direct Taxes

• No Personal Tax: Income up to ?12 lakh (?12.75 lakh for salaried) under new regime.
• Revised Tax Slabs (New Regime):
  • 0–4L: Nil | 4–8L: 5% | 8–12L: 10%
  • 12–16L: 15% | 16–20L: 20% | 20–24L: 25% | 24L+: 30%
• Standard Deduction: ?75,000
• Compliance Relief: Trusts registration extended to 10 years.
• TDS/TCS Rationalization: Fewer thresholds, higher limits for senior citizens and rent.
• Tax Certainty: Safe harbour rules, startup extensions, presumptive taxation for electronics.

Indirect Taxes

• Tariff Rationalization: Only 8 remaining tariff rates.
• Customs Relief: ?2,600 crore forgone, key lifeline drugs exempted.
• Support to Domestic Manufacturing:
  • EV/mobile battery manufacturing: 63 capital goods exempted
  • Ships: BCD exemption extended for 10 years
  • Marine, leather, textiles: Several BCD reductions/exemptions
• Voluntary Compliance Scheme: Without penalty for post-clearance corrections.

In News:

• Released on 31st January 2025, a day before the Union Budget.
• Prepared by the Department of Economic Affairs, Ministry of Finance.
• Provides a comprehensive review of India’s macroeconomic trends, sectoral developments, and key policy challenges.
• Real GDP growth estimated at 6.4% in FY25 (close to decadal average); projected between 6.3–6.8% in FY26.
• Reflects India's resilience amidst global slowdown, supply chain disruptions, and geopolitical uncertainties.

Sector-wise Performance

Agriculture:

• Expected growth: 3.8% in FY25.
• Record Kharif foodgrain production: 1647.05 LMT (+5.7% YoY).
• Growth driven by horticulture, livestock, and fisheries.
• Supported by above-normal monsoons and robust reservoir levels.

Industry:

• Estimated growth: 6.2% in FY25.
• Construction, utilities, and mining contribute significantly.
• Challenges: Sluggish export demand, climate disruptions, and festival timing variations.
• Manufacturing PMI remains in the expansionary zone.

Services:

• Robust growth: 7.2% in FY25.
• Services exports up by 12.8% (April–Nov FY25) vs 5.7% in FY24.
• Growth led by finance, real estate, public administration, and professional services.

Inflation and Price Stability

• Retail inflation eased to 4.9% (Apr–Dec 2024) from 5.4% (FY24).
• Food inflation remains high at 8.4%, driven by pulses and vegetables.
• CPI expected to align with RBI's 4% target by FY26.

Investment and Infrastructure

• Capital Expenditure grew 8.2% YoY (Jul–Nov 2024); sustained increase since FY21.
• Infrastructure momentum:
  • 2031 km railways commissioned (Apr–Nov 2024).
  • 17 Vande Bharat trains introduced.
  • Port efficiency improved; container turnaround time reduced from 48.1 to 30.4 hours.
• Renewable energy capacity rose by 15.8% YoY (Dec 2024).

External Sector and Trade

• Overall exports grew by 6% (Apr–Dec 2024); merchandise exports up 1.6%.
• Services exports surged; India now 7th largest globally.
• FDI inflows: $55.6 billion (Apr–Nov FY25), +17.9% YoY.
• Forex reserves at $640.3 billion (Dec 2024), covering 10.9 months of imports and 90% of external debt.
• CAD contained at 1.2% of GDP in Q2 FY25.
• Strong remittance inflows support BOP stability.

Fiscal Health

• Gross Tax Revenue rose 10.7% YoY (Apr–Nov 2024).
• Stable deficit indicators allowed for developmental expenditure.
• State revenue expenditure grew 12%, with subsidies increasing by 25.7%.

Banking, Credit, and Financial Markets

• Gross NPAs dropped to 2.6% (lowest in 12 years).
• CRAR of scheduled banks at 16.7% (Sept 2024), well above regulatory norms.
• Stock market cap to GDP ratio: 136%, higher than China (65%) and Brazil (37%).
• Credit-GDP gap reduced to -0.3% in Q1 FY25 (from -10.3% in Q1 FY23).

Employment and Labour Market

• Unemployment rate declined to 3.2% (2023-24) from 6.0% (2017-18).
• Labour Force Participation Rate (LFPR) and Worker-Population Ratio (WPR) improved.
• Emphasis on AI skill development to future-proof labour markets.

Health, Education & Social Sector

• Government health expenditure rose from 29% to 48% of total health spending (FY15–FY22).
• Out-of-pocket expenditure dropped from 62.6% to 39.4% in the same period.
• Education reforms aligned with NEP 2020 via programs like Samagra Shiksha, DIKSHA, PM SHRI, etc.
• Social services spending grew at 15% CAGR (FY21–FY25).
• Decline in Gini coefficient indicates improving consumption equality.

Policy Recommendations and Reform Agenda

• Deregulation as central theme to boost productivity and EoDB.
• Advocates Ease of Doing Business 2.0, led by states, targeting:
  • Simplification of compliance norms.
  • Risk-based regulation.
  • Reduction in tariffs and licensing hurdles.
• ?50,000 crore Self-Reliant India Fund launched for MSME equity support.
• Need for long-term infrastructure investment to achieve Viksit Bharat@2047.

Global Backdrop

• Global GDP grew by 3.3% in 2023, with an average 3.2% growth projected over next five years (IMF).
• Weak global manufacturing; services sector remains stronger.
• Risks: Geopolitical tensions, trade policy fragmentation, energy transition dependence on China.

Way Forward

• Balanced outlook for FY26 with upside from:
  • Strong rural demand.
  • Agricultural recovery.
  • Easing food inflation.
• Challenges include:
  • Geopolitical tensions.
  • Global trade and commodity price volatility.
  • Delay in private investment materialisation.

In News:

The Union Cabinet reviewed the progress under NHM (2021–24), underscoring significant gains in public health infrastructure, disease control, and healthcare accessibility, particularly during and after the COVID-19 pandemic.

About NHM:

• Launched: 2013, integrating NRHM (2005) and NUHM (2012).
• Objective: Universal access to equitable, affordable, and quality healthcare services.
• Focus: Vulnerable populations, rural and urban poor.
• Implementation: Ministry of Health & Family Welfare supports states and UTs.

Key Achievements (2021–2024):

1. Human Resource Expansion

• 12.13 lakh healthcare workers added, including doctors, nurses, CHOs, and AYUSH practitioners.
• Ni-kshay Mitras: 1.56 lakh volunteers supported 9.4 lakh TB patients.
• Progressive annual engagement:
  • FY 2021–22: 2.69 lakh
  • FY 2022–23: 4.21 lakh
  • FY 2023–24: 5.23 lakh

Maternal and Child Health

• Maternal Mortality Ratio (MMR): Dropped by 83% since 1990 (from 130 to 97 per lakh live births).
• Under-5 Mortality Rate (U5MR): Reduced from 45 (2014) to 32 (2020).
• Infant Mortality Rate (IMR): Declined from 39 (2014) to 28 (2020).
• Total Fertility Rate (TFR): Reduced from 2.3 (2015) to 2.0 (2020).

Disease Control and Elimination

• Tuberculosis (TB):
  • Incidence: From 237 (2015) to 195 (2023) per 1,00,000.
  • Mortality: Decreased by 21.4% (from 28 to 22).
• Kala-azar: Target achieved in all endemic blocks (<1 case/10,000 population by 2023).
• Sickle Cell Anemia: 2.61 crore people screened under the National Elimination Mission.
• Malaria:
  • Cases fell in 2021 but rose in 2022 and 2023.
  • Deaths declined continuously.

Immunization Campaigns

• COVID-19: Over 220 crore doses administered (2021–2024).
• Measles-Rubella: 97.98% coverage, vaccinating 34.77 crore children under IMI 5.0.
• Digital Health: U-WIN platform launched in 2023 for real-time vaccination tracking in 65 districts.

Healthcare Infrastructure

• 7,998 health facilities certified under National Quality Assurance Standards (NQAS).
• Ayushman Arogya Mandirs: 1.72 lakh operational, with 1.34 lakh offering 12 essential services.
• 24×7 services: At 12,348 PHCs and 3,133 FRUs.
• Mobile Medical Units (MMUs): Expanded to 1,424 units, MMU Portal operational.

Specialized Health Initiatives

• Pradhan Mantri TB Mukt Bharat Abhiyan: Volunteer-driven TB patient support.
• Pradhan Mantri National Dialysis Programme:
  • Delivered 62.35 lakh hemodialysis sessions to 4.53 lakh patients in FY 2023–24.
• Sickle Cell Mission: Major tribal health initiative targeting elimination by 2047.

National Programs Under NHM

• RMNCH+A: Reproductive, Maternal, Newborn, Child, and Adolescent Health.
• Communicable Disease Control: TB, malaria, leprosy, HIV/AIDS.
• Non-Communicable Diseases (NCDs): Cancer, diabetes, hypertension.
• Other Initiatives: Rashtriya Bal Swasthya Karyakram (RBSK), PM National Dialysis Programme, Ayushman Bharat (AB-PMJAY).

Alignment with SDG Goals

• NHM achievements indicate India is on track to meet SDG-3 targets (Good Health and Well-being), especially in maternal and child mortality reduction.

Introduction

India's transition towards clean energy has accelerated, with 2024 witnessing record-breaking renewable energy (RE) installations and policy innovation. With a vision to achieve 500 GW of non-fossil fuel capacity by 2030 and net-zero emissions by 2070, India is shaping itself as a global leader in sustainable development.

What is Renewable Energy?

Renewable energy is derived from naturally replenishing sources like solar, wind, hydropower, and biomass. It plays a vital role in:

• Reducing dependence on fossil fuels.
• Lowering greenhouse gas emissions.
• Ensuring long-term energy security.

India’s RE Targets and Progress

Parameter                                 Target/Status

2030 Target                              500 GW of non-fossil fuel capacity

Net Zero by                               2070

Current Status (Jan 2025)      217.62 GW of non-fossil fuel-based capacity

Short-term Goal                      50% energy capacity from renewable sources

2024: Year of Renewable Milestones

Solar Energy

• 24.5 GW added in 2024 — a 2.8x increase over 2023.
• 18.5 GW utility-scale solar: Rajasthan, Gujarat, Tamil Nadu contributed 71%.
• Rooftop Solar:
  • 4.59 GW added (↑53%)
  • 7 lakh installations under PM Surya Ghar: Muft Bijli Yojana.
• Off-grid Solar:
  • 1.48 GW added (↑182%), promoting rural energy access.

Wind Energy

• 3.4 GW added: Gujarat (1,250 MW), Karnataka (1,135 MW), Tamil Nadu (980 MW) = 98% of new capacity.

Hydropower & Others

• Existing hydropower plants modernized to improve efficiency.

Government Initiatives Driving Growth

Scheme/Initiative                                                Purpose

PM Surya Ghar: Muft Bijli Yojana                  Rooftop solar subsidies for households

Green Energy Corridor (GEC)                        Transmission infra for RE-rich states

Hydrogen Energy Mission                                Promote green hydrogen production

National Smart Grid Mission (NSGM)            Integration of variable RE sources into the grid

FAME Scheme                                                   Promote EV adoption, indirectly supporting RE usage

International Solar Alliance (ISA)                   Strengthen global cooperation in solar energy

Challenges in RE Expansion

• Land Acquisition: Resistance from locals, especially in solar park areas.
• Grid Stability: Intermittency of solar/wind leads to voltage and frequency issues.
• Storage Gaps: Lack of large-scale battery storage limits surplus utilization.
• E-Waste Concerns: Rising disposal of solar panels and batteries.
• Mineral Dependency: Import reliance on lithium, cobalt, etc.
• Regulatory Bottlenecks: Delay in approvals and lack of inter-state coordination.

Way Forward: Strategic Interventions

Technological Innovation

• Floating Solar Projects: Utilize reservoirs to save land and reduce evaporation.
• Decentralized Systems: Peer-to-peer trading via blockchain for energy democratization.
• Green Hydrogen: Use surplus RE for hydrogen fuel, develop hydrogen corridors.

Infrastructure & Manufacturing

• Renewable Energy SEZs: Promote local manufacturing and innovation.
• Smart Grid Development: Improve grid flexibility and real-time balancing.

Environmental Management

• Circular Economy for RE Waste: Design policies for solar panel and battery recycling.
• Urban Integration: Incentivize rooftop installations in urban centers.

Conclusion

India’s renewable energy revolution is at a crucial juncture. With 2024 setting a strong precedent through record installations and policy progress, the path to 2030 and beyond will require addressing infrastructural, financial, and regulatory challenges. A multi-pronged, inclusive, and technology-driven approach will help India lead the global clean energy transition.

Overview

Union Home Minister Amit Shah has reiterated India's commitment to eliminate Naxalism in Chhattisgarh by March 31, 2026. He emphasized the progress made in the fight against Naxalism, highlighting key successes and outlining the strategy for the coming years.

Key Pointers

• Government Commitment: Amit Shah emphasized the joint commitment of the Government of India and the Chhattisgarh state leadership to rid the state of Naxalism by 2026.
• Security Forces’ Success: Over the past year, Chhattisgarh police neutralized 287 Naxalites, arrested around 1,000, and saw 837 surrenders.
• Top Naxal Cadres Neutralized: The state forces successfully neutralized 14 high-ranking Naxal cadres.
• President’s Police Colour Award: Chhattisgarh Police received the President's insignia within 25 years, a significant achievement for the state.

The Three-Pronged Strategy for Eliminating Maoist Insurgency

1. Security Measures (Force)

Deployment of Security Forces

• Enhanced Presence: Increased deployment of Central and State police forces in Left-Wing Extremism (LWE) areas.
• Joint Operations: Coordinated operations between state and central forces, including CRPF and COBRA units.
• Upgraded Technology: Incorporation of UAVs, solar lights, and mobile towers to enhance operational efficiency.

Operation SAMADHAN

• Key Elements:
  • Smart Leadership: Leading with innovative strategies.
  • Aggressive Strategy: Swift, decisive action against insurgents.
  • Motivation and Training: Strengthening the capabilities of forces.
  • Actionable Intelligence: Real-time intelligence for effective operations.
  • Harnessing Technology: Using modern tech for strategic advantage.

2. Development Initiatives

Focused Development Schemes

• PMGSY: Rural road connectivity under the Pradhan Mantri Gram Sadak Yojana.
• Aspirational Districts Program: Improving infrastructure in Naxal-affected areas.
• Skill Development: Targeted schemes in 47 LWE-affected districts to reduce unemployment.

Infrastructure Development

• Special Infrastructure Schemes: Building schools, roads, and bridges in remote areas to integrate them into the mainstream economy.
• Rehabilitation: Focus on providing rehabilitation for former Naxals through education and vocational training.

3. Empowerment (Winning Hearts and Minds)

Public Engagement

• Tribal Empowerment: Strengthening communication with tribal communities to reduce alienation and mistrust.
• Rehabilitation Policies: Surrender schemes offering incentives like education and financial aid to reintegrate former insurgents into society.

Maoism: Ideology and Background

What is Maoism?

• Origin: A form of communism developed by Mao Tse Tung, focusing on armed insurgency to capture state power.
• Core Beliefs: Maoists believe in violence and insurrection as legitimate means to overthrow the state and establish a People’s Democratic Republic.
• Indian Maoism: The Communist Party of India (Maoist), formed in 2004, leads the largest Maoist insurgency in India.

Recent Achievements in Combatting Maoist Insurgency

Key Successes in 2023

• Maoist-Free Villages: Villages in Dantewada declared "Maoist-free," a significant victory for the state.
• Reduction in Security Forces’ Casualties: 14 deaths in 2024, a dramatic decrease from 198 deaths in 2007.
• Infrastructure and Logistical Support: Enhanced use of helicopters and fortified police stations.

Government’s Commitment to Rebuilding

• Rehabilitation and Welfare: The government is implementing policies to improve the living standards of affected families, including 15,000 houses for Naxal-affected regions.
• Economic Development: Focus on building infrastructure and providing employment through skills training programs.

Challenges in Eliminating Naxalism

Socio-Economic Issues

• Exploitation of Tribals: Marginalization of tribals due to displacement for mining and forestry.
• Lack of Infrastructure: Basic amenities like roads, schools, and healthcare are absent in many areas.
• Centralized Naxal Command: The CPI (Maoist) retains a strong leadership, despite fragmentation of its forces.

Governance and Trust Issues

• Alienation of Local Populations: Ineffective governance and poor implementation of welfare schemes fuel local support for Naxal groups.
• Resource Conflict: The Naxals exploit rich mineral resources in the region to fund their insurgency.

Way Forward

Governance and Economic Reforms

• Tribal Empowerment: Form Tribal Advisory Councils as per the Fifth Schedule for better resource management.
• Land Redistribution: Enforce the Land Ceiling Act to reduce inequality.
• Livelihood Programs: Offer alternative livelihoods to reduce dependency on illegal activities.

Security Measures

• Paramilitary Deployment: Specialized forces to secure tribal areas and enable local governance.
• Resource Management: Ensure sustainable exploitation of natural resources, involving tribal communities in the decision-making process.

Peace Dialogues

• Inclusive Policies: Engage in dialogue with Naxals to facilitate their reintegration into mainstream society.

Conclusion

Naxalism in India, particularly in Chhattisgarh, is a complex issue rooted in socio-economic inequalities, lack of development, and historical alienation of tribal communities. The government's approach, encapsulated in the SAMADHAN strategy, combines security operations with developmental initiatives and a focus on empowerment to tackle the problem. With a clear commitment to eliminate Naxalism by 2026, the Indian government is making significant strides in reducing violence, improving governance, and integrating affected communities into the mainstream.

In News:

The Periodic Labour Force Survey (PLFS) conducted by the National Statistical Office (NSO) from July 2023 to June 2024 provides crucial insights into the employment landscape in India.

Key Findings from the PLFS Report 2023-24

• Labour Force Participation Rate (LFPR):
  • The LFPR for individuals aged 15 years and above rose to 60.1%, an increase from 57.9% the previous year.
  • For males, LFPR is at 78.8%, while for females, it increased to 41.7%, up from 37.0%.
• Worker Population Ratio (WPR):
  • The WPR for the same age group stands at 58.2%. This is composed of 76.3% for males and 40.3% for females.
  • Female WPR improved from 35.9% to 40.3% during the reporting period.
• Unemployment Rate (UR):
  • The overall unemployment rate is 3.2%. It slightly declined for males from 3.3% to 3.2%, while it increased for females from 2.9% to 3.2%.

Overview of the PLFS

The PLFS, initiated in April 2017, aims to provide timely and accurate labor market data. It focuses on two main objectives:

• Short-term Employment Indicators: Measure key employment metrics every three months in urban areas using the Current Weekly Status (CWS) approach.
• Annual Estimates: Gather employment and unemployment data for both urban and rural areas, assessing them in terms of Usual Status and CWS.

Methodology and Sample Design

• The survey employs a rotational panel sampling design in urban areas, where households are visited multiple times to ensure comprehensive data collection.
• During the 2023-24 period, a total of 12,800 Field Sampling Units (FSUs) were designated, with 12,743 successfully surveyed.

Conceptual Framework

Key indicators measured include:

• Labour Force Participation Rate (LFPR): Percentage of the population working or actively seeking work.
• Worker Population Ratio (WPR): Percentage of employed individuals in the total population.
• Unemployment Rate (UR): Proportion of unemployed individuals among the labor force.

Challenges in Job Creation

India continues to face significant challenges in generating formal jobs. Key factors contributing to this issue include:

• Informalization of Employment: Growth in sectors like agriculture and construction is leading to increased informal employment, lacking social security and job protections.
• Technological Advancements: Automation and AI threaten job opportunities, even for skilled workers, as evidenced by layoffs in the IT sector.
• Skill Mismatch: Despite a push for skill development, the share of skilled jobs has declined, highlighting a growing disconnect between training programs and labor market needs.
• Policy Impacts: Past policies, such as demonetization and poorly implemented GST, have negatively impacted small and medium enterprises (SMEs), which are vital for job creation.

Way Forward:

To address these challenges, several strategies are proposed:

• Sectoral Diversification: Fostering investments in manufacturing, renewable energy, and technology can generate productive jobs.
• Support for MSMEs: Targeted financial aid and regulatory relief for micro, small, and medium enterprises are crucial for boosting their employment potential.
• Skill Development: Aligning training initiatives with current industry demands, particularly in emerging sectors, is essential.
• Focus on New-Age Services: Encouraging growth in sectors like e-commerce and online education could create diverse job opportunities.

Conclusion

The PLFS 2023-24 reveals an encouraging increase in labor force participation, particularly among women, while also highlighting persistent challenges in unemployment and gender disparities. The findings underscore the need for continued efforts to enhance job creation and improve employment conditions in both formal and informal sectors.