In News:

The Reserve Bank of India (RBI) has announced its largest-ever USD-INR Buy/Sell Swap Auction worth $10 billionfor a tenor of three years. This strategic move is aimed at addressing the persistent liquidity deficit in the banking system and stabilizing the Rupee-Dollar exchange rate.

What is a USD-INR Buy/Sell Swap Auction?

A Dollar/Rupee Buy-Sell Swap Auction is a foreign exchange (forex) tool used by RBI to manage domestic liquidity and curb currency volatility. It is a two-leg transaction:

• First Leg (Buy Phase):Banks sell US dollars to the RBI and receive rupee liquidity.
• Reverse Leg (Sell Phase):RBI sells back the same amount of US dollars to banks at a future date (here, after 3 years), along with a swap premium.

Key Features of the February 2025 Swap Auction:

• Auction Size: USD 10 billion
• Tenor: 3 years (long-term)
• Rupee Liquidity Injected: Approx. ?86,000 crore
• Auction Date: 28 February 2025
• Spot Settlement Date: 4 March 2025
• Far-leg Settlement Date: 6 March 2028
• Reference Rate: Based on FBIL (Financial Benchmarks India Pvt Ltd) benchmark

Objectives and Benefits:

• Liquidity Management:
  • Addresses durable liquidity needs; helps ease banking system deficit (estimated at ?1.7 lakh crore).
  • Supports credit flow to businesses, aiding economic growth.
• Exchange Rate Stability:
  • Reduces volatility in the USD/INR rate (expected to stabilize around ?86.30).
  • Mitigates pressure from foreign fund outflows.
• Efficient Forex Reserve Utilization:
  • Uses RBI’s reserves productively to manage monetary conditions.
• Enhances Policy Transmission:
  • Aligns money market interest rates with RBI’s monetary policy stance.
• Supports Inflation Control:
  • Infuses liquidity without directly adding to inflationary pressures.

Challenges and Limitations:

• Impact on Forex Reserves:Large-scale swaps temporarily tie up reserves.
• Global Dependencies:Effectiveness may be affected by global interest rate differentials, capital flows, and external shocks.
• Market Speculation Risks:Poor timing or execution could trigger speculative activity in the forex market.
• Temporary Measure:Swap auctions offer short- to medium-term relief; structural reforms are needed for long-term liquidity management.

In News:

The Quality of Public Expenditure (QPE) Index, developed by the Reserve Bank of India (RBI), measures how efficiently public funds are allocated and utilized by the Central and State governments. Unlike traditional fiscal measures that focus on total expenditure, the QPE Index assesses the composition and developmental impact of government spending, emphasizing long-term economic growth and social development.

Key Components of the QPE Index

 Indicator                                                                                      What it Measures                                        Significance 

Capital Outlay to GDP Ratio    -   Share of GDP spent on physical infrastructure   -   Higher ratio = better quality of expenditure

Revenue Expenditure to Capital Outlay Ratio  - Relative spending on salaries, pensions vs. asset creation  - Lower ratio = better efficiency

Development Expenditure to GDP Ratio   -  Spending on education, healthcare, R&D, infrastructure   -  Higher ratio = enhanced productivity

Development Expenditure as % of Total Expenditure  - Proportion of total expenditure directed to development sectors   -  Higher share = improved allocation

Interest Payments to Total Expenditure Ratio   -     Financial burden from past borrowings    -    Lower ratio = better fiscal health

Evolution of Public Expenditure (1991–2025)

• 1991–1997(Early liberalization):
  • Slight improvement at Centre; states faced fiscal pressure.
  • Public investment declined due to focus on fiscal deficit reduction.
• 1997–2003:Decline in QPE due to Fifth Pay Commission, rising interest burden, dominance of revenue expenditure.
• 2003–2008(FRBM Era):
  • Fiscal Responsibility and Budget Management (FRBM) Act, 2003 improved fiscal discipline.
  • States gained from higher tax devolution; capital spending rose.
  • Growth momentum sustained until the 2008 Global Financial Crisis (GFC).
• 2008–2013(GFC response):
  • Stimulus spending initially boosted development but later widened fiscal deficits.
  • Spending quality eroded over time.
• 2013–2019(GST & 14th Finance Commission):
  • 14th Finance Commission (2015) increased states' tax share to 42%, improving state-level development spending.
  • GST rollout (2017) benefited states more than Centre initially, stressing Centre’s finances.
• 2019–2025(COVID-19 & Recovery):
  • Pandemic-induced fiscal stimulus reduced QPE temporarily.
  • Post-pandemic recovery led by record capital expenditure boosted infrastructure, improving QPE.
  • By FY 2024–25, India's QPE reached its highest level since 1991 reforms.

Recent Trends in Public Expenditure (as per Economic Survey 2024–25 & Budget 2025–26)

• Capital expenditure (Capex) rose 8.2% YoY.
• Revenue expenditure (primarily by states) increased 12% YoY.
• FY 2025–26 Budget allocated ?11.21 lakh crore for Capex (3.1% of GDP).
• Capex to GDP ratio increased from 1.5% in 2000 to 2.5% in 2023.
• Revenue expenditure to Capex ratio improved from 8:1 in 2000 to 5:1 in 2023.
• Development expenditure rose from 6% to 8% of GDP between 2000–2023.
• Interest payments declined from 25% to 20% of total expenditure in the same period.

Why Quality of Public Expenditure Matters

• Governments use citizens’ money (via taxes or borrowing). Efficient use ensures better socio-economic outcomes.
• High QPE means greater focus on productive investment over populist spending (freebies, subsidies).
• Better QPE leads to:
  • Higher GDP growth (average 6.5% annually since 2000).
  • Improved infrastructure and service delivery.
  • Enhanced social indicators like literacy (77.7% in 2023) and life expectancy (70 years).

Challenges Affecting Public Expenditure Quality

• Persistent revenue deficits (3.3% of GDP in 2023) limit fiscal space for Capex.
• Rising populism: Loan waivers, cash handouts, free electricity.
• Welfare scheme inefficiencies: Leakages in MGNREGA, PDS.
• Debt servicing: High interest payments constrain spending.
• Inter-state disparities: Unequal fiscal capacity hampers balanced development.

Way Forward

• Boost Capex to over 3% of GDP to enhance infrastructure-led growth.
• Rationalize subsidies via Direct Benefit Transfers (DBT).
• Strengthen fiscal federalism through equitable devolution and performance-based grants.
• Leverage technology for transparent and outcome-based expenditure tracking.
• Reform FRBM Act:
  • Focus on debt-to-GDP targets.
  • Introduce flexibility in deficit norms during crises.

In News:

India has launched the Electronic Personnel License (EPL) for pilots, becoming the second country globally, after China, to implement this advanced digital licensing system.

What is EPL?

• Electronic Personnel License (EPL) is a digital version of pilot licenses, replacing the traditional physical cards.
• Pilots can securely access their EPL via the eGCA Mobile Application developed by the Directorate General of Civil Aviation (DGCA).
• It ensures real-time verification, enhancing efficiency, transparency, and security in licensing procedures.

Significance of EPL

• Aligns with:
  • Digital India and Ease of Doing Business initiatives.
  • ICAO’s Amendment 178 to Annex 1 on Personnel Licensing, promoting digital transformation.
• Enhances:
  • Safety and efficiency in civil aviation operations.
  • Environmental sustainability by reducing the use of plastic and paper.
  • Global employability of Indian pilots through instant international credential verification.

Implementation & Governance

• Ministry: Ministry of Civil Aviation, Government of India.
• Executing Agency: Directorate General of Civil Aviation (DGCA).
• EPL implementation positions India as a leader in aviation innovation and modern governance.

International Civil Aviation Organization (ICAO):

• Established: 1947 under the Chicago Convention (1944).
• Headquarters: Montreal, Canada.
• Nature: A specialized intergovernmental agency affiliated with the United Nations (UN).
• Functions:
  • Sets standards and regulations for aviation safety, security, efficiency, and environmental performance.
  • Promotes peaceful and efficient international air transport.
  • Facilitates global cooperation and market liberalization in aviation.

In News:

The National Skill Development Corporation (NSDC) has announced plans to establish 50 Future Skills Centres (FSCs) and 10 NSDC International Academies to enhance skill development and improve workforce readiness in India. This initiative aims to address the country's growing demand for skilled professionals, particularly in emerging technologies and international markets.

About NSDC

• NSDC is a not-for-profit public limited company set up to promote skill development across India.
• It operates under the Ministry of Skill Development & Entrepreneurship (MSDE).
• Established on July 31, 2008, NSDC was founded as a Public-Private Partnership (PPP) under Section 25 of the Companies Act, 1956 (now Section 8 under the 2013 Act).
• The corporation operates with a 49% government stake and 51% private sector participation, ensuring a balanced approach to skill development through public and private sector collaboration.

Key Objectives of NSDC

• Bridging the Skill Gap: NSDC aims to fill the gap between industry requirements and the available workforce by providing industry-relevant training. This enhances workforce employability and supports the growth of the Indian economy.
• Financial Support for Enterprises: NSDC provides funding and concessional loans to enterprises, start-ups, and training organizations to expand their operations and develop a skilled workforce.
• Skilling the Workforce for Emerging Technologies: The corporation focuses on upskilling individuals in emerging technologies to make them market-ready.

Key Functions of NSDC

• Skill Development & Training: NSDC provides vocational training and certification across emerging technologies to align the workforce with current industry needs, ensuring that individuals are equipped with the necessary skills to succeed in the job market.
• Apprenticeship & Job Training: Under the National Apprenticeship Promotion Scheme (NAPS), NSDC trains around 5 million apprentices by disbursing ?100,250 million for skill-based learning, giving them hands-on experience and industry exposure.
• Digital & Remote Skilling: Through the Skill India Digital Hub (SIDH), NSDC offers over 7,100 courses in 23 languages, catering to 30 crore candidates. These online courses provide accessibility to skill development programs across the country, particularly for individuals in remote and rural areas.
• Job & Career Support: NSDC runs JobX, a platform that connects job seekers with potential employers. This platform offers services such as resume building, career coaching, and placement assistance, having already supported 4 million candidates in securing jobs.

New Initiatives by NSDC

To further strengthen India’s skill ecosystem, NSDC is establishing 50 Future Skills Centres (FSCs) and 10 NSDC International Academies. These initiatives will focus on:

• Future Skills Centres: These centers will offer training in emerging fields such as artificial intelligence, data science, cybersecurity, and robotics, ensuring that India's workforce is prepared for future job markets.
• International Academies: The academies will focus on global skill standards and international certifications, enhancing the employability of Indian workers in global markets.

ecosystem, the Securities and Exchange Board of India (SEBI) has launched a new digital platform—MITRA (Mutual Fund Investment Tracing and Retrieval Assistant).

Key Features:

• Objective:MITRA aims to help investors trace, identify, and reclaim inactive or unclaimed mutual fund folios, while ensuring KYC (Know Your Customer) compliance under prevailing regulatory norms.
• Developed by:The platform has been developed at an industry level by the two Qualified Registrar and Transfer Agents (QRTAs) —
  • Computer Age Management Services Ltd. (CAMS)
  • KFIN Technologies Ltd.

These firms serve as agents of Asset Management Companies (AMCs).

• Hosted by:The platform is hosted jointly by CAMS and KFIN Technologies to serve as a centralized, searchable database for inactive and unclaimed mutual fund folios across the industry.
• Functions:
  • Enables investors to search for overlooked investments or investments made in their name by others.
  • Facilitates rightful legal claims by heirs or nominees.
  • Encourages KYC compliance, thus reducing the number of non-KYC compliant folios.
  • Aims to minimize the risks of fraudulent redemptions linked to dormant folios.
  • Supports the creation of a transparent financial ecosystem by reducing unclaimed investments.

Definition of Inactive Folio:

• A mutual fund folio is considered inactive when no investor-initiated financial or non-financial transactions have occurred for ten consecutive years, even though the folio holds units.

Institutional Measures:

• Unit Holder Protection Committee (UHPC):SEBI has broadened the role of the UHPC under mutual fund regulations. The committee is now tasked with monitoring inactive folios, unclaimed dividends, and pending redemptions, ensuring proactive steps are taken for investor protection.
• Stakeholder Involvement:SEBI has directed AMCs, RTAs, Registered Investment Advisers (RIAs), the Association of Mutual Funds in India (AMFI), and mutual fund distributors to actively promote awareness regarding MITRA among investors.

In News:

A landmark deep-sea fishing expedition by the Fishery Survey of India (FSI) has led to the discovery of previously underexploited fishing grounds in the Arabian Sea, offering significant promise for India’s marine resource sustainability, food security, and fishermen’s livelihoods.

Key Highlights of the Expedition

• Conducted by: Fishery Survey of India (FSI), under the Ministry of Fisheries, Animal Husbandry & Dairying
• Supported by: Pradhan Mantri MatsyaSampada Yojana (PMMSY)
• Geographic Scope: Waters between Kollam (Kerala) and Goa, at depths of 300–540 meters
• Location: Approx. 100–120 nautical miles off India’s western coast
• Catch Rate: Average Catch Per Unit Effort (CPUE) recorded at 150–300 kg/hr
• Timing: No significant difference observed in catches between day and night

Marine Biodiversity of the New Grounds

The discovered ecosystem harbors rich and diverse marine life, including:

• Commercially Important Crustaceans:
  • Humpback nylon shrimp
  • Arabian red shrimp
  • Deep sea mud shrimp
  • Deepwater spiny lobster
  • Deep sea squat lobster
• Cephalopods:
  • Opisthoteuthis species
  • Octopoteuthissicula
• Diverse Deep-Sea Fishes:
  • Froghead eel, Rosy cod, Snake mackerel, Sackfish
  • Royal escolar, Bandfishes, Duckbill flathead
  • Splendid alfonsino, Myctiophids, Shadow driftfish
  • Spinyjawgreeneye, Shortfin neoscopelid, Stargazers
• Elasmobranchs (Cartilaginous Fishes):
  • Sicklefin chimaera, Pygmy ribbontail catshark
  • Bramble shark, Indian swellshark, Travancore skate

Significance for India’s Fisheries Sector

• Reduces Pressure on Coastal Fisheries: Coastal resources are under stress from overfishing, habitat degradation, and climate change. Deep-sea grounds offer a sustainable alternative.
• Supports Blue Economy Goals: Enhances India’s capacity to sustainably exploit its vast Exclusive Economic Zone (EEZ).
• Economic Benefits: Aligns with the government’s goal of doubling fishermen’s income and generating employment in marine-based livelihoods.
• Scientific Value: Contributes to marine biodiversity documentation and ecosystem-based fisheries management.

In News:

India is set to host the 14th Asian Fisheries and Aquaculture Forum (14AFAF) from February 12–14, 2025, at the ICAR Convention Centre, Pusa Campus, New Delhi.

Key Highlights

• This triennial international event—organized by the Asian Fisheries Society (AFS), Indian Council of Agricultural Research (ICAR), Department of Fisheries (DoF), and AFS Indian Branch (AFSIB)—is themed "Greening the Blue Growth in Asia-Pacific".
• It aims to promote sustainable, inclusive, and innovation-driven development in the fisheries and aquaculture sector.
• Previous Indian Host: India is hosting the AFAF for the second time, the first being the 8th AFAF in Kochi (2007).
• Legacy: AFAF, headquartered in Kuala Lumpur, Malaysia, has been a leading platform for fostering global cooperation in fisheries and aquaculture since its inception.

India's Role and Significance

• India ranks second globally in total fish production and aquaculture output, underlining its emerging leadership in the blue economy.
• The forum presents a strategic opportunity to:
  • Showcase India’s technological and policy advancements.
  • Strengthen international collaborations.
  • Promote sustainable, resilient, and globally competitive aquaculture systems.

Forum Structure and Thematic Sessions

The event will feature 20+ technical sessions and keynote presentations by international experts, focusing on priority areas such as:

• Sustainable Fisheries Management:Emphasis on responsible fishing, biodiversity preservation, and efficient resource utilization.
• Climate Change and Fisheries:Addressing climate impacts on aquatic ecosystems and developing adaptive strategies.
• Smart Aquaculture & Technology:Integration of AI, IoT, and blockchain to enhance fish farming efficiency and monitoring.
• Fish Genetics & Biotechnology:Innovations for disease resistance, improved yields, and genetic advancements.
• Post-Harvest and Value Addition:Improving fish quality, market access, and export competitiveness through better processing techniques.

In News:

The International Energy Agency (IEA), in its report “India Gas Market Report: Outlook to 2030”, has highlighted the transformative potential of natural gas in India’s energy transition.

As India aims to raise the share of natural gas in its primary energy mix from ~6% to 15% by 2030, the report outlines a roadmap for achieving this goal through policy reforms, infrastructure expansion, and market liberalization.

Current Status and Future Outlook

• Demand Growth: India's natural gas consumption is projected to increase by 60%, reaching 103 billion cubic meters (bcm) by 2030. The City Gas Distribution (CGD) sector, which supplies gas to households, transport, and industries, will drive this growth.
• Domestic Production: India produced 35 bcm in 2023, with the Krishna-Godavari deepwater fields contributing a quarter. Production is expected to reach just under 38 bcm by 2030, a modest 8% increase.
• Import Dependency: With domestic supply growth lagging behind demand, LNG imports are expected to more than double, from ~30 bcm in 2023 to around 65 bcm by 2030. India is already the fourth-largest LNG importer globally.

Infrastructure Expansion

India’s natural gas infrastructure has undergone rapid growth:

• Since 2019, the number of CNG stations quadrupled and residential gas connections more than doubled.
• The gas transmission pipeline network expanded by 40%, with another 50% expansion expected by 2030.
• CGD infrastructure is poised for a further boom, supporting increased consumption in urban areas.

Sectoral Trends

• Industry: Heavy industry and manufacturing are expected to add 15 bcm to gas demand by 2030.
• Refining: Gas use in refineries will rise by over 4 bcm as more refineries get connected.
• Transport: Greater CNG adoption, if incentivized, could significantly reduce vehicular emissions.

Challenges Hindering Growth

• Price Distortion: Prices from legacy fields are capped (e.g., USD 6.5–10 per MMBtu), limiting true market-based discovery.
• Monopoly in Transport & Marketing: GAIL’s dominance in both gas marketing and pipeline ownership creates potential conflicts of interest.
• Storage Limitations: India lacks underground gas storage (UGS) and has limited LNG storage capacity, affecting supply security.
• Policy and Regulatory Gaps: Inadequate third-party access and fragmented pricing/taxation systems reduce investor confidence.

Policy Recommendations by IEA

• Gas Pricing Freedom:
  • Implement full pricing freedom, in line with Kirit Parekh Committee (2022) recommendations.
  • Initially lift ceilings on high-cost deepwater and ultra-deepwater projects.
  • Allow producers to sell more output on platforms like the Indian Gas Exchange (IGX).
• Unbundling Supply and Transmission:
  • Establish independent gas transmission system operators (TSOs).
  • Legally separate marketing from pipeline operations to ensure fair, non-discriminatory access.
  • Standardize Gas Sales Agreements (GSAs) and Gas Transmission Agreements (GTAs).
• Infrastructure and Market Development:
  • Ensure transparent, regulated third-party access to pipelines.
  • Develop strategic gas reserves and expand LNG terminal capacity.
  • Improve data transparency on pipeline capacities and tariffs.
• Tax and Regulatory Reforms:
  • Harmonize taxes across fuels to create a level playing field.
  • Rationalize GST on CNG vehicles and revise import duties on natural gas.
  • Offer tax benefits to natural gas similar to electric vehicles to promote adoption.
• Secure Long-Term LNG Contracts:
  • With legacy contracts expiring post-2028, proactive procurement is essential to avoid spot market volatility.

In News:

The Income-tax Bill, 2025, tabled in Parliament on February 13, 2025, seeks to repeal and replace the Income-tax Act, 1961, marking a landmark step in tax law simplification.

It reflects the government's commitment to ease of doing business, legal clarity, and tax compliance, without altering the core tax policy or rate structure.

Guiding Principles

1. Textual and structural simplification for better clarity.
2. Policy continuity—no major tax policy changes.
3. Preservation of existing tax rates for predictability.

Approach and Methodology

• Three-pronged strategy:
  • Simplify language and eliminate legalese.
  • Remove obsolete, redundant, and repetitive provisions.
  • Reorganize the Act for logical and easier navigation.
• Consultative process:
  • 20,976 online suggestions received.
  • Stakeholder consultations with taxpayers, professionals, and industry bodies.
  • International best practices reviewed, notably from Australia and the UK.

Quantitative Simplification

Parameter               Income-tax Act, 1961                  Income-tax Bill, 2025                      Change

Words                     5,12,535                                        2,59,676                                           ↓ 2,52,859

Chapters                47                                                  23                                                     ↓ 24

Sections                  819                                                 536                                                  ↓ 283

Tables                      18                                                    57                                                    ↑ 39

Formulae                 6                                                     46                                                    ↑ 40

Key Features and Improvements

• Qualitative Enhancements:
  • Use of simplified and accessible language.
  • Consolidation of amendments to reduce fragmentation.
  • Enhanced readability via structured use of tables and formulae.
  • Elimination of outdated provisions.
• Introduction of "Tax Year":Defined as the 12-month period beginning April 1, providing better uniformity.
• Crypto as Capital Asset:Virtual Digital Assets (VDAs) such as cryptocurrencies included in the definition of "property", now taxable as capital assets.
• Dispute Resolution Clarity:Improved transparency in Dispute Resolution Panel (DRP) procedures by including points of determination and reasoning—addressing a key criticism of ambiguity in the earlier framework.
• Removal of Obsolete Exemptions:Section 54E, providing capital gain exemptions for transfers before April 1992, has been scrapped.
• Expected Timeline:Once enacted, the Income-tax Act, 2025 is proposed to come into effect from April 1, 2026.

In News:

• The Government of India has launched UDAN 5.5, the latest phase of its flagship regional air connectivity scheme UDAN (UdeDesh ka AamNaagrik).
• It aims to enhance last-mile air connectivity in remote, hilly, and island regions using smaller aircraft, helicopters, and seaplanes.

About UDAN Scheme

• Launched: 2016, under the National Civil Aviation Policy (NCAP).
• Nodal Ministry: Ministry of Civil Aviation.
• Purpose: To make air travel affordable, accessible, and widespread, especially in Tier-2 and Tier-3 towns.

Objectives

• Provide affordable air travel to the common citizen.
• Improve air connectivity in unserved and underserved regions.
• Promote regional development and economic integration.

Key Features

• Fare Cap: ?2,500 per hour of flight for 50% of seats (about 500 km distance).
• Viability Gap Funding (VGF):
  • Provided to airlines to cover shortfalls between operational cost and revenue.
  • Financed via Regional Connectivity Fund (RCF).
• Government Contribution to VGF:
  • State Governments: 20%
  • Union Territories & North-Eastern Region (NER) States: 10%
• Support Measures: Concessions from Central/State Governments and airport operators.

Special Variants Under UDAN

• Lifeline UDAN: For transporting medical cargo during COVID-19.
• Krishi UDAN: For agricultural produce value realization, especially from NER and tribal districts.
• International UDAN: To connect NER cities like Guwahati and Imphal with international destinations.

UDAN 5.5 – Key Highlights

• Focuses on last-mile connectivity in challenging terrains where traditional aviation is impractical.
• Aircraft Types Allowed:
  • Category 1A: < 9 seats
  • Category 1: < 20 seats
• Operational Modes:
  • Seaplanes: Use of 80 water bodies including waterdromes, ponds, dams.
  • Helicopters: Routes mapped from 400 helipads nationwide.
  • Small Aircraft: Routes specifically for aircraft under 20-passenger capacity.
• Encourages air taxi and niche aviation operators.

Achievements of UDAN (as of 2024)

• Passenger Impact: Enabled travel for over 1.5 crore passengers.
• Flight Operations: Over 2.8 lakh UDAN flights completed.
• Route Expansion: 619 routes operationalized, including helicopter routes.
• Airport Growth: Number of operational airports doubled from 74 in 2014 to over 157 in 2024.
• Destinations Connected:
  • 68 unserved/underserved destinations added: includes 58 airports, 8 heliports, 2 water aerodromes.

Future Scope

• Current Challenges:
  • India currently has no active seaplane services.
  • Fewer than 20 small aircraft (Category A1) in operation.
• Projected Developments (next 5 years):
  • Establishment of 50+ seaplane routes.
  • Creation of 20–25 water aerodromes.
  • Induction of around 30 new aircraft for regional connectivity.

In News:

The Gender Budget allocation for FY 2025-26 has increased to ?4.49 lakh crore, accounting for 8.86% of the total Union Budget, up from 6.8% in FY 2024-25. This represents a 37.25% increase compared to the ?3.27 lakh crore allocated in the previous year.

Key Highlights:

• Expansion Across Ministries:
  • A total of 49 Ministries/Departments and 5 Union Territories (UTs) have reported allocations in the Gender Budget Statement (GBS) for 2025-26, marking the highest participation since the inception of the Gender Budget.
  • Twelve new Ministries have been included in the GBS this year, signaling a broader inclusion of gender considerations in sectors such as animal husbandry, biotechnology, water resources, food processing, and railways.
• Gender Budget Allocation Breakdown:
  • Part A (100% Women-specific schemes): ?1,05,535.40 crore (23.5% of total GBS).
  • Part B (30-99% allocation for women): ?3,26,672 crore (72.75% of total GBS).
  • Part C (Below 30% allocation for women): ?16,821.28 crore (3.75% of total GBS).
• Top Ministries reporting high percentages in gender-focused allocations include the Ministry of Women & Child Development (81.79%), Department of Rural Development (65.76%), and Department of Health & Family Welfare (41.10%).
• Focus on Women’s Economic Participation:
  • The Union Budget aims to boost women’s participation in economic activities, targeting 70% by 2047.
  • Women’s Labour Force Participation Rate (LFPR) rose to 42% in 2023-24 from 33% in 2021-22.
  • Efforts to close the gender gap involve increased allocations to programs like Skill India, Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM), and PM Vishwakarma, with 52% of the ?1.24 lakh crore allocated for these programs earmarked for women and girls.
• Support for Women Entrepreneurs:
  • Women own 20.5% of micro, small, and medium enterprises (MSMEs) in India, employing approximately 27 million people.
  • The Budget focuses on empowering women entrepreneurs by advocating for collateral-free loans, alternative credit scoring models, and financial literacy programs.
  • Establishing 30 million additional women-owned businesses could generate 150-170 million jobs by 2030, contributing significantly to India's employment needs.
• Gig Economy and Informal Sector:
  • The Budget introduces measures to formalize gig workers, 90% of whom are women. By issuing identity cards and registering gig workers on the e-Shram portal, the Budget aims to provide them with access to social security and financial inclusion benefits.
  • This addresses the challenges faced by women in the informal sector, including low wages, job insecurity, and lack of maternity benefits.
• Gender Inclusivity in Technology:
  • A dedicated ?600 crore allocation under the India AI Mission aims to promote gender inclusivity in the technology sector. This includes the establishment of a Centre of Excellence on Artificial Intelligence (AI) for education and skill development, ensuring women’s participation in high-growth technological fields.

• Gender Budgeting Components:
  • Part A: Gender-specific expenditure, directly benefiting women (e.g., BetiBachaoBetiPadhao).
  • Part B: Pro-women general expenditure, benefiting both men and women but focusing on women’s advancement (e.g., MGNREGA).
  • Part C: Gender-neutral budgets that may require gender-sensitive planning (e.g., Har GharNal project, which reduces women’s time spent fetching water).
• Policy Vision and Challenges:
  • The Union Budget for 2025-26 is part of the government’s vision for a "Viksit Bharat" with zero poverty, universal education, 100% skilled labor, and 70% female participation in the workforce by 2047.
  • While the Budget lays a strong foundation, addressing persistent challenges like gender pay gaps, occupational segregation, and cultural barriers will require sustained policy interventions, gender-sensitive workplace reforms, and effective implementation of gender-disaggregated data for monitoring outcomes.

In News:

India ranked 96th out of 180 countries in the Corruption Perceptions Index (CPI) for 2024, with a score of 38, a decline from 39 in 2023 and 40 in 2022. This indicates a worsening perception of corruption within India’s public sector.

Global Context:

• The CPI, compiled annually by Transparency International, is a widely recognized global ranking system that evaluates the perceived levels of corruption in public sectors.
• It uses a scale of 0 to 100, where 0 indicates highly corrupt and 100 signifies very clean.
• The CPI is based on expert assessments and surveys, drawing from at least three data sources out of 13 recognized corruption assessments from organizations like the World Bank and the World Economic Forum.
• Top Ranking Countries: Denmark topped the 2024 CPI, followed by Finland and Singapore, indicating strong governance systems with minimal corruption. These countries are recognized for their effective public sector governance, transparency, and low corruption levels.
• Regional Comparison: Among India’s neighbors, Pakistan ranked 135th, Sri Lanka at 121st, Bangladesh at 149th, and China ranked 76th, performing relatively better than India. The Asia-Pacific region, in general, saw a decline in its average CPI score, dropping by one point to 44.
• Global Trends: The CPI 2024 reveals troubling global trends, with corruption being a persistent issue worldwide. While 32 countries have significantly improved their corruption scores since 2012, 148 countries have either stagnated or worsened in the same period.
  • The global average score remains at 43, with more than two-thirds of countries scoring below 50, signaling a widespread corruption problem.
• Corruption’s Impact on Climate Action: One of the significant findings in 2024 is the link between corruption and climate action. Corruption undermines efforts to combat climate change by misappropriating funds meant for emission reduction and climate adaptation projects.
  • The report warns that such corruption obstructs effective policies and hinders climate change mitigation, leading to environmental degradation. Furthermore, it highlights that corruption in high-CPI countries often serves the interests of fossil fuel companies, complicating global climate efforts.

• Corruption and Human Rights: The report underscores that corruption not only impedes economic development but also contributes to the erosion of democracy, human rights violations, and instability. Corruption, particularly in the form of misallocation of resources, exacerbates the vulnerability of populations already affected by climate change, poverty, and human rights abuses.
• Financial Hubs and Illicit Funds: Many countries with high CPI scores, despite their lower domestic corruption levels, serve as financial hubs that attract illicit funds stemming from corruption and environmental damage. This "dirty money" exacerbates corruption on a global scale and has far-reaching consequences that extend beyond national borders.
• The Call for Action: Transparency International’s report stresses the need for global cooperation in tackling corruption. It warns that corruption is a major contributor to the rise of authoritarianism and calls for urgent, concrete action to address global corruption. The report emphasizes that combating corruption is crucial for achieving a peaceful, sustainable, and democratic world.

In News:

India has achieved a significant milestone in semiconductor technology with the development of the indigenous Shakti semiconductor chip. Developed by the Indian Institute of Technology (IIT) Madras in collaboration with the Indian Space Research Organisation (ISRO) and supported by the Ministry of Electronics and Information Technology (MeitY), the Shakti chip is a crucial component of India’s push for technological self-reliance under the Digital India RISC-V (DIRV) initiative.

Overview of Shakti Semiconductor Chip

• The Shakti chip is an indigenous microprocessor based on the RISC-V open-source Instruction Set Architecture (ISA).
• Its primary objective is to meet the high-performance computing, security, and reliability needs of India’s defense, aerospace, and space industries.
• It was specifically designed to support applications in satellite missions, avionics, embedded systems, and command-and-control operations.
• The chip is the third in the Shakti series, following the earlier RIMO (2018) and MOUSHIK (2020) chips, which served as technology demonstrators.

Key Features:

• Indigenous Development: Fully developed, fabricated, and tested in India, ensuring complete control over the design and manufacturing process.
• RISC-V Architecture: The Shakti chip utilizes the RISC-V open-source architecture, offering flexibility for customization and adaptation to various hardware and application needs.
• Fault Tolerant and Reliable: Designed to endure the harsh conditions of space and defense applications, making it highly reliable for mission-critical functions.
• High-Performance Computing: Supports complex functions like AI-based operations, real-time control systems, and sensor integration, essential for space missions and advanced defense technologies.
• Advanced Security: Aimed at providing robust security measures for critical sectors, including defense and aerospace, ensuring protection against cyber threats.
• Expandable and Scalable: The chip supports multiple boot modes and hybrid memory extensions, allowing for future upgrades and expansions, especially for space exploration.

Applications of the Shakti Chip

• Space Missions: The Shakti chip plays a vital role in powering ISRO's command-and-control systems, satellite avionics, and embedded systems used in various space missions.
• Defense & Aerospace: It enhances India’s strategic autonomy by reducing reliance on foreign semiconductor technology for military-grade electronics.
• IoT & AI Applications: The chip’s high-performance computing capabilities are ideal for smart systems, the Internet of Things (IoT), and AI applications.
• Research and Development: The chip contributes significantly to India’s semiconductor ecosystem, providing a foundation for further R&D in indigenous chip fabrication.

The Digital India RISC-V (DIRV) Initiative

• Launched in April 2022 by MeitY, the DIRV initiative aims to strengthen India’s semiconductor ecosystem by promoting the development of indigenous RISC-V-based microprocessors.
• The initiative emphasizes reducing dependency on foreign semiconductor solutions and fostering self-reliance in the digital sector.
• DIRV also focuses on high-performance computing for emerging technologies such as 5G, AI, and cloud computing. Through collaborations with IITs, ISRO, C-DAC, and private industry partners, the program aims to create a robust ecosystem for scalable microprocessor solutions.

IRIS: A Key Development from Shakti

• One of the most notable outputs of the Shakti chip initiative is the IRIS (Indigenous RISC-V Controller for Space Applications).
• Developed for ISRO’s space missions, the IRIS chip is a high-performance, fault-tolerant, 64-bit processor based on the Shakti microprocessor.
• It has been designed to meet the specific needs of space missions, such as satellite command-and-control systems, by integrating custom modules like watchdog timers and advanced serial buses.
• The IRIS chip also features multiple boot modes and hybrid memory extensions for future scalability and expansion in line with upcoming space missions.

In News:

To enhance the efficacy and wider adoption of MIS, the Government of India revised the guidelines in 2025.

Key Highlights:

• Objective: It aims to provide price support for perishable agricultural and horticultural commodities not covered under the Minimum Support Price (MSP) regime. It prevents distress sales during periods of excessive production and sharp price declines.
• Implementing Authority:The scheme is under the Department of Agriculture & Farmers’ Welfare and is now a component of the PM-AASHA (Pradhan Mantri AnnadataAaySanrakshan Abhiyan) umbrella scheme.
• Eligibility & Activation:

• Implemented on the request of State/UT Governments.
• Triggered when market prices fall by at least 10% compared to the average price of the previous normal year.

• Nature of the Scheme:

• Ad-hoc price support mechanism operational during sudden market crashes.
• Cost-sharing pattern between Centre and States is 50:50, and 75:25 for North-Eastern states.

• Procurement Provisions (Revised 2025):

• Procurement limit increased from 20% to 25% of total production of the crop.
• Direct Benefit Transfer (DBT) mode introduced: States may directly compensate farmers for the price difference between Market Intervention Price (MIP) and actual selling price.
• Physical procurement is optional under the revised scheme.

• Authorized Procurement Agencies:

• Central Nodal Agencies like NAFED (National Agricultural Cooperative Marketing Federation of India) and NCCF (National Cooperative Consumers’ Federation of India).
• Farmer Producer Organizations (FPOs), Farmer Producer Companies (FPCs), and state-nominated agencies can also participate in procurement, storage, and transportation.

• Support for Transportation and Storage:

• Reimbursement of storage and transport costs is provided by Central Nodal Agencies for TOP crops (Tomato, Onion, Potato).
• This provision helps balance regional price disparities between producing and consuming states.

• Significance:

• The revamped MIS strengthens market resilience for perishable crop producers.
• Enhances State participation, reduces post-harvest losses, and ensures remunerative returns through institutional and technological support mechanisms.

In News:

India has amended the Customs Tariff Act, 1975, becoming the first country in the world to introduce a Harmonised System (HS) code for Geographical Indication (GI)-tagged rice varieties. This was announced in the Union Budget 2025–26.

Key Features of the Amendment

• HS Code Introduced For:
  • 1006-30-11 – GI-tagged parboiled rice
  • 1006-30-91 – GI-tagged white rice
• Objective:
  • To enable uninterrupted exports of GI rice even during general export restrictions or bans.
  • GI rice exports will not require special government notification during such bans.

About Harmonised System (HS) Code

• Full Form: Harmonised System Code
• Developed by: World Customs Organization (WCO)
• Structure: 6-digit global standard; India uses an 8-digit extension for more specific classification.
• Purpose: Classification of traded goods for customs, tariffs, and trade statistics.
• HS Code Hierarchy:
  • First 2 digits: Chapter (e.g., “10” for cereals)
  • Next 2 digits: Heading (e.g., “06” for rice)
  • Last 2 digits: Subheading (e.g., “30” for semi-milled or wholly milled rice)

Impact on GI Rice Exports

• Facilitates global market access for Indian specialty rice varieties.
• Differentiates GI-tagged rice from conventional rice in trade documents.
• Prevents mislabeling and misuse of India’s GI rice identity.
• Allows exports of GI rice even under export bans, without fresh government clearance.

GI-Tagged Rice Varieties in India

• 20 GI-recognized rice varieties, including:Navara, Palakkadan Matta, Pokkali, Wayanad Jeerakasala, etc.
• 20 pending GI applications, including:Seeraga Samba, Jammu & Kashmir Red Rice, Wada Kolam Paddy, etc.

About the World Customs Organization (WCO)

• Established in 1952 as the Customs Co-operation Council; renamed WCO in 1994.
• Headquarters: Brussels, Belgium.
• Membership: 183 customs administrations, including India, covering 98% of global trade.
• Key Functions:
  • Maintains and updates the HS Code every 5 years.
  • Drives customs modernization through instruments like the Revised Kyoto Convention (RKC).
  • Coordinates anti-smuggling, anti-counterfeiting, and trade enforcement efforts.
  • Collaborates with global institutions like the WTO and UN to enhance trade efficiency.

In News:

The National Bamboo Mission (NBM) was initially launched in 2006 under the Ministry of Agriculture & Farmers Welfare to promote bamboo-based development. Between 2014–2016, it was subsumed under the Mission for Integrated Development of Horticulture (MIDH).

In 2018-19, it was restructured under the National Mission for Sustainable Agriculture (NMSA) as a Centrally Sponsored Scheme (CSS) to revamp bamboo cultivation, processing, and value chain integration.

A key reform was the 2017 amendment to the Indian Forest Act, 1927, which removed bamboo grown outside forests from the definition of “tree.” This de-regulated its felling and transit, boosting private bamboo farming and easing trade.

Objectives

• Increase the availability of quality planting materials and expand area under bamboo cultivation, especially in non-forest land.
• Promote post-harvest management, primary treatment, seasoning, and preservation technologies.
• Develop market infrastructure, incubation centers, and tools & equipment for value addition.
• Encourage value-added product development, skill development, and entrepreneurship.
• Reduce import dependency on bamboo and bamboo-based products.

Funding Pattern

• General States: 60% Central and 40% State funding.
• Northeastern & Hilly States: 90% Central and 10% State.
• Union Territories, BTSGs & National Level Agencies: 100% Central funding.

Implementation Framework

• Implemented through the State Nodal Departments, nominated by respective State/UT governments.
• Notable example: Bareilly Bamboo Cluster operational in Shahjahanpur district, Uttar Pradesh, since 2019-20, with activities like nursery establishment, bamboo plantation, skill development, and bamboo product demonstration.

Bamboo – Ecological & Economic Significance

• Botanical Classification: Grass (Family: Poaceae, Subfamily: Bambusoideae), ~115 genera and ~1,400 species globally.
• Native to tropical, subtropical, and mild temperate zones, with highest concentration in East and Southeast Asia.

Properties & Applications:

• Carbon Sequestration: Produces 35% more oxygen than comparable vegetation; acts as a natural carbon sink.
• Climate Adaptability: Thrives in degraded lands; prevents soil erosion; vital for land restoration.
• Alternative Energy Source: Among the fastest-growing plants (up to 90 cm/day); can substitute fossil fuels.
• Food & Medicine: Bamboo shoots are consumed in Northeast India; roots and parts used in traditional medicine.
• Livelihood Support: Flexible harvest cycles provide year-round income for farmers.

Bamboo Production Status in India

• 18,000+ inventoried grids reported bamboo presence between 2016–17 to 2019–20.
• Estimated total bamboo culms: 53,336 million.
• 35.19% increase in bamboo culms from ISFR 2019 to ISFR 2021 (an increase of 13,882 million culms).

In News:

The Union Cabinet has approved the continuation and restructuring of the Skill India Programme (SIP) till March 2026, with a financial outlay of ?8,800 crore.

The revamped programme consolidates three flagship schemes under a composite Central Sector Scheme—Pradhan Mantri Kaushal Vikas Yojana 4.0 (PMKVY 4.0), Pradhan Mantri National Apprenticeship Promotion Scheme (PM-NAPS), and Jan ShikshanSansthan (JSS)—with the aim to build a skilled, future-ready workforce.

Objectives and Vision

• Strengthen workforce development through industry-aligned, technology-enabled, and demand-driven skill training.
• Enhance global competitiveness, promote international mobility, and align with India's economic priorities such as Atmanirbhar Bharat, Make in India, and Digital India.
• Enable lifelong learning, skilling, reskilling, and upskilling through inclusive, flexible, and community-based training.

Beneficiaries and Coverage

• Over 2.27 crore individuals have benefited so far.
• Targeted age groups vary across schemes:
  • PMKVY 4.0: 15–59 years
  • PM-NAPS: 14–35 years
  • JSS: 15–45 years
• Emphasis on marginalized sections, women, rural youth, aspirational districts, and the North-East Region.

Key Components of the Restructured Programme

1. Pradhan Mantri Kaushal Vikas Yojana 4.0 (PMKVY 4.0)

• Offers NSQF-aligned training via:
  • Short-Term Training (STT)
  • Special Projects (SP)
  • Recognition of Prior Learning (RPL)
• Introduces 400+ new courses in emerging fields:
  • Artificial Intelligence (AI), 5G, Cybersecurity, Green Hydrogen, Drone Technology.
• Establishment of Skill Hubs in premier institutions (IITs, NITs, JNVs, KendriyaVidyalayas, etc.).
• Focus on international mobility:
  • Mobility Partnership Agreements (MMPAs), joint certifications, and language proficiency training.
• Blended learning models with digital delivery and regional language content.
• Integration with schemes such as PM Vishwakarma, PM Surya GharMuft Bijli Yojana, National Green Hydrogen Mission, and NAL JAL Mitra.
• Adoption of an Ease of Doing Business framework to reduce compliance burdens.

2. Pradhan Mantri National Apprenticeship Promotion Scheme (PM-NAPS)

• Promotes earn-while-you-learn through industry-specific apprenticeships.
• Government support of 25% stipend (up to ?1,500/month per apprentice) via Direct Benefit Transfer (DBT).
• Focus on both traditional and emerging sectors like AI, robotics, blockchain, green energy, and Industry 4.0.
• Encourages participation of MSMEs and enterprises in underserved regions.

3. Jan ShikshanSansthan (JSS) Scheme

• Community-based skilling for economically disadvantaged, rural youth, and women.
• Offers low-cost, flexible, doorstep training for both self-employment and wage-based livelihoods.
• Linked with initiatives such as PM JANMAN, ULLAS, and financial literacy campaigns.
• Also promotes awareness in health, hygiene, gender equality, and education.

Certification and Digital Integration

• All certifications are aligned with the National Skills Qualification Framework (NSQF).
• Integrated with DigiLocker and the National Credit Framework (NCrF), ensuring:
  • Formal recognition of skills.
  • Horizontal and vertical mobility in education and employment.
• Micro-credential courses (7.5 to 30 hours) and National Occupational Standards (NoS)-based training introduced.

Supporting Schemes and Initiatives

• SANKALP(Skill Acquisition and Knowledge Awareness for Livelihood Promotion).
• TEJAS (Skilling for international placement).
• Model Skill Loan Scheme.

Significance of Skill India Programme

• Demographic Dividend: With over 65% of India’s population below 35, the programme is pivotal in transforming potential into productivity.
• Employment & Entrepreneurship: Reduces unemployment through structured training, apprenticeships, and encourages skill-based startups.
• Global Workforce Readiness: Aligns with international standards, enabling Indian workers to access global job markets.
• Technological Preparedness: Equips the youth with skills in futuristic technologies.
• Inclusive Growth: Ensures urban-rural and gender-based equity in skilling access.
• Economic Impact: Supports India's manufacturing, IT, and services sectors, driving GDP growth.

In News:

India has officially surpassed 100 GW of installed solar power capacity as of January 31, 2025, marking a historic milestone in its clean energy journey. This achievement strengthens India’s position as a global leader in renewable energy and signifies major progress toward its ambitious target of 500 GW non-fossil fuel capacity by 2030, as outlined by Prime Minister Narendra Modi.

Union Minister of New and Renewable Energy, highlighted this milestone as a testament to India’s energy self-reliance, driven by key initiatives such as solar parks, rooftop solar schemes, and domestic solar manufacturing.

Growth Trajectory and Achievements

• Installed Capacity Growth:
  • From 2.82 GW in 2014 to 100.33 GW in 2025 – a growth of 3450% over a decade.
  • Solar energy now accounts for 47% of India’s total installed renewable energy capacity.
• Capacity Pipeline:
  • 84.10 GW of solar under implementation.
  • 47.49 GW under tendering.
  • Including hybrid and RTC renewable projects, India has 296.59 GW of solar and hybrid projects in total.
• Record Additions in 2024:
  • 24.5 GW solar capacity added, more than double from 2023.
  • 18.5 GW utility-scale installations – a 2.8 times increase from 2023.
  • 4.59 GW of rooftop solar added, a 53% increase over 2023.
• Top States in utility-scale solar growth:Rajasthan, Gujarat, Tamil Nadu, Maharashtra, and Madhya Pradesh.

Solar Manufacturing Boom

• Solar module production capacity has grown from 2 GW (2014) to 60 GW (2024).
• With continued policy support, India is targeting 100 GW of manufacturing capacity by 2030.
• This shift makes India a global hub for solar technology and reduces reliance on imports.

Major Government Initiatives Driving Solar Growth

• National Solar Mission (NSM) (2010):Set long-term targets, with 280 GW of solar capacity by 2030 under its ambit.
• PM SuryaGharMuft Bijli Yojana (2024):
  • A game-changing rooftop solar scheme aiming to empower households with free, clean electricity.
  • Nearly 9 lakh rooftop installations as of early 2025.
• PM-KUSUM Scheme:Promotes solar irrigation pumps and supports farmers with grid-connected solar systems.
• Solar Parks Scheme:Facilitates development of large-scale solar clusters in states to boost capacity.
• Production-Linked Incentive (PLI) Scheme:Incentivizes domestic manufacturing of solar PV modules.
• Net Metering Policy:Allows consumers to generate and export surplus solar power to the grid.
• International Solar Alliance (ISA):India-led global initiative fostering solar energy cooperation among solar-rich countries.

Benefits of Solar Energy for India

• Energy Security: Reduces dependence on fossil fuel imports.
• Environmental Gains: Cuts GHG emissions and combats climate change.
• Economic Boost: Millions of jobs created across installation, manufacturing, and maintenance.
• Affordability: Declining PV costs make solar a cost-effective energy source.
• Rural Electrification: Powers remote and off-grid regions, improving livelihoods.

Challenges and the Way Forward

• Land Acquisition: Scarcity of land hinders large-scale solar deployment.
• Grid Integration: Intermittency of solar power stresses the existing power grid.
• Finance & Investment: Scaling up infrastructure and storage requires sustained capital inflow.
• Storage Solutions: Affordable battery storage is essential for reliability and round-the-clock supply.

In News:

The Grant for Research & Entrepreneurship across Aspiring Innovators in Technical Textiles (GREAT) scheme, launched in August 2023 under the National Technical Textiles Mission (NTTM), aims to promote startup-led innovation and entrepreneurship in the rapidly growing sector of technical textiles in India.

As of February 2025, the government has approved four startups under the scheme, providing them with financial assistance to develop commercially viable innovations.

About the GREAT Scheme:

• Objective: To encourage young innovators, scientists, and startups in the technical textiles domain to convert ideas into market-ready products or functional prototypes.
• Implementation: Operated by the Ministry of Textiles under the R&D and Innovation Component of the NTTM.
• Financial Support:
  • Grants of up to Rs.50 lakh for a period of up to 18 months.
  • 10% upfront contribution from startups (e.g., ?5 lakh for a ?50 lakh grant).
  • No royalty or equity required by the government.
• Approved Projects: Focus areas include Medical Textiles, Industrial Textiles, and Protective Textiles.

Complementary Initiatives under NTTM:

Academic and Skill Development:

• Education Institutes:
  • ?6.5 crore approved for 3 academic institutes, including IIT Indore and NIT Patna, to introduce new courses in Geotextiles, Sports Textiles, Protective Textiles, and more.
• Skill Training:
  • 12 Skill Development Courses launched across application areas such as Medical, Agricultural, Mobile, and Protective Textiles.
  • Developed by leading Textile Research Associations: SITRA, NITRA, and SASMIRA.
  • Aim to train stakeholders across the technical textile value chain.

National Technical Textiles Mission (NTTM): An Overview

• Launched: 2020
• Nodal Ministry: Ministry of Textiles
• Total Outlay: ?1,480 crore
• Mission Goals:
  • Make India a global leader in technical textiles.
  • Expand the market size to $40–50 billion with 15–20% annual growth.
  • Increase domestic penetration and usage of high-performance technical textiles.

Four Key Components:

1. Research, Innovation, and Development
2. Promotion and Market Development
3. Export Promotion
4. Education, Training, and Skill Development

• Sectoral Focus:Agro-textiles, Geotextiles, Medical Textiles, Industrial Textiles, Mobile Textiles, Home Textiles, Sports Textiles, Protective Textiles, and others.
• Policy Support:Includes integration with PLI schemes, PM MITRA Parks, and formulation of quality control regulations to strengthen manufacturing capabilities.

Significance for India’s Development:

• Encourages Atmanirbhar Bharat through self-reliant manufacturing and innovation.
• Strengthens India's competitiveness in high-end technical textiles for defense, healthcare, agriculture, infrastructure, and disaster response.
• Bridges the gap between lab-level R&D and market-ready products, especially by supporting startups in early innovation stages.

In News:

The Union Budget 2025–26 introduced the Grameen Credit Score (GCS) framework as a targeted initiative to enhance access to formal credit for Self-Help Groups (SHGs) and the rural population. It reflects the government’s commitment to financial inclusion, rural empowerment, and inclusive development.

What is the Grameen Credit Score?

• The Grameen Credit Score is a rural-specific credit evaluation framework being developed by Public Sector Banks.
• It aims to formalize the credit behavior and transaction history of SHG members and rural individuals, especially women entrepreneurs, and integrate them into India’s central credit ecosystem.
• Unlike conventional credit scores (like CIBIL or CRIF Highmark), GCS is tailored to assess creditworthiness based on local financial behavior, such as SHG repayment records, informal lending history, and community participation.

Key Features and Objectives:

• Improved Credit Assessment:
  • Bridges the gap in the current credit bureau systems, which often overlook rural borrowers and SHG members.
  • Uses digital records and behavioral insights to provide a customized and accurate credit profile.
• Financial Inclusion:
  • Targets women-led SHGs to provide better access to loans, credit cards, and microfinance products.
  • Encourages rural borrowers to understand and monitor credit scores, EMIs, and repayment cycles.
• Customized Financial Products:
  • Linked with the introduction of custom credit cards for micro-enterprises with credit limits of up to ?5 lakh.
  • Facilitates product innovation for grassroots entrepreneurs in agriculture, MSMEs, and allied sectors.
• Support for Broader Rural Ecosystems:
  • Integrated with initiatives like the SVAMITVA Scheme for property records digitization.
  • Complements reforms like the transformation of India Post into a rural logistics backbone and support for cooperative sectors via the NCDC.
• Economic Empowerment:
  • By expanding credit access and improving repayment discipline, GCS is expected to:
    • Boost rural entrepreneurship
    • Strengthen economic resilience of rural households
    • Support the long-term development of the rural economy

Impact on Rural Development and SHGs:

• Empowers rural women through financial independence and enterprise development.
• Enhances formal credit linkage of SHGs, reducing reliance on informal moneylenders.
• Promotes financial literacy and long-term economic stability in villages.
• Aims to be a catalyst for poverty alleviation and inclusive growth.

In News:

The 3rd India-Japan Steel Dialogue was held on February 4, 2025, at Vigyan Bhavan, New Delhi, as part of the institutional mechanism under the Memorandum of Cooperation (MoC) signed between the two nations in December 2020. The dialogue was co-chaired by senior officials from India’s Ministry of Steel and Japan’s Ministry of Economy, Trade and Industry (METI).

Key Highlights and Strategic Focus Areas:

• Bilateral Steel Cooperation:The dialogue served as a platform to deepen cooperation in areas such as technology exchange, workplace safety, product diversification, and capacity building. Both nations reviewed progress under existing initiatives and reaffirmed commitment to long-term collaboration in the steel sector.
• Ease of Doing Business & Investment Support:India reiterated its commitment to facilitating ease of doing business for Japanese companies, while Japan assured continued technological and financial support for investments in advanced steel technologies in India.
• Sustainable Steel Production:India showcased recent initiatives like the Green Steel Report and the Taxonomy of Green Steel, underlining efforts to align steel production with sustainability goals and climate commitments.
• Demographic & Market Advantages:The Indian delegation highlighted the growing domestic demand driven by infrastructure investments, and the potential of India’s demographic dividend to attract foreign investment in the steel sector.
• Global Regulatory Issues – EU CBAM:Both sides discussed the European Union’s Carbon Border Adjustment Mechanism (EU CBAM), which seeks to impose carbon pricing on imports in sectors such as iron and steel, aluminum, cement, fertilizers, electricity, and hydrogen.
  • CBAM Phase Timeline:
    • Transitional Phase: 2023–2025 (reporting obligations)
    • Full Implementation: From 2026 (financial obligations imposed)

Relevance:
CBAM has major implications for international steel trade, necessitating cleaner production methods and greater transparency in carbon emissions data.

In News:

In the Union Budget 2025–26, Finance Minister announced the establishment of a Makhana Board in Bihar with a dedicated budget of ?100 crore to boost the production, processing, and export of Makhana (Fox Nuts).

About Makhana (Fox Nuts):

• Botanical Name: Euryale ferox
• Family: Nymphaeaceae (Water lily family)
• Description:
  • Makhana is the dried edible seed of the prickly water lily.
  • Grown in freshwater bodies across South and East Asia.
  • The plant is known for its violet and white flowers and large, round, prickly leaves.
  • Due to its black outer covering, Makhana is nicknamed the "Black Diamond."

Nutritional and Medicinal Value:

• Low in fat, rich in carbohydrates, and a good source of protein and minerals.
• Widely used in:
  • Traditional medicine
  • Health and wellness products
  • Culinary preparations such as popped Makhana (‘Lava’)

Major Producing Regions:

• India:
  • Bihar produces 90% of India’s total Makhana, especially in the Mithilanchal region.
    • Key districts: Darbhanga, Madhubani, Purnea, Katihar, Saharsa, Supaul, Araria, Kishanganj, Sitamarhi.
    • The first four districts contribute 80% of Bihar’s Makhana output.
• Other Indian states: Assam, Manipur, West Bengal, Tripura, Odisha.
• Other countries: Nepal, Bangladesh, China, Japan, Korea.
• GI Tag: Mithila Makhana received the Geographical Indication (GI) tag in 2022.

Climatic Conditions for Cultivation:

• Type: Aquatic crop; grows in stagnant water bodies (ponds, lakes, wetlands).
• Ideal Conditions:
  • Water Depth: 4–6 feet
  • Temperature: 20°C – 35°C
  • Relative Humidity: 50% – 90%
  • Annual Rainfall: 100 – 250 cm

About the Makhana Board:

• Allocated Budget: ?100 crore
• Objectives:
  • Train farmers in advanced cultivation techniques.
  • Support processing and value addition in the Makhana supply chain.
  • Facilitate financial aid and access to government schemes.
  • Develop export infrastructure and promote branding and marketing.

Makhana under ODOP Scheme:

• Recognized as a One District One Product (ODOP) commodity for Bihar.
• Under ODOP, the Union Government provides subsidies to processors for:
  • Infrastructure development
  • Branding and marketing

About ODOP Scheme:

• Launched by: Ministry of Food Processing Industries (MoFPI)
• Objective: Promote district-level economic specialization and turn each district into an export hub.
• Origin: First launched in Uttar Pradesh (2018); adopted as a national initiative under the Atmanirbhar Bharat vision.
• Implementation:
  • In coordination with the ‘Districts as Export Hubs’ (DEH) initiative.
  • Managed by DGFT, Department of Commerce, and DPIIT.
• Significance:
  • Encourages rural entrepreneurship, local employment, and global trade linkages.
  • Strengthens district economies by scaling up traditional and unique products.

In News:

The Ministry of Railways has launched a unified mobile application, SwaRail, currently in beta testing as of January 31, 2025.

This initiative aims to streamline access to Indian Railways services and enhance user experience by consolidating various apps into a single digital platform.

Key Highlights

What is SwaRail?

• SwaRail is a SuperApp developed by the Centre for Railway Information Systems (CRIS).
• It serves as a comprehensive, one-stop solution for a wide range of Indian Railways services.
• The app is currently in beta testing and is available on the Google Play Store and Apple App Store.

Objective

• To integrate multiple railway-related services under a unified platform.
• To reduce app clutter and device storage consumption.
• To improve user experience through a seamless and intuitive interface.

Developed By: Centre for Railway Information Systems (CRIS)

• CRIS is an organization under the Ministry of Railways.
• It combines IT expertise with railway operational experience.
• CRIS is responsible for developing and maintaining software for core railway functions.

Services Offered via SwaRail

The SuperApp merges functionalities of multiple existing apps, offering:

1. Ticketing Services
   • Reserved ticket booking
   • Unreserved and platform ticket booking
2. Freight & Parcel Enquiries
   • Parcel booking status
   • Freight services information
3. Passenger Enquiries
   • Real-time train status
   • PNR enquiry (along with associated train details)
   • Train schedules
4. Onboard Services
   • Food ordering while traveling
   • Complaint redressal via Rail Madad

Notable Features of the SuperApp

Feature                                  Description

Single Sign-On                    Access all services using a single set of credentials

Unified App                         Combines multiple previously separate apps (e.g., IRCTC RailConnect, UTS)

Integrated Interface            Displays consolidated data like PNR + train info on the same screen

Easy Onboarding                Existing users can log in with RailConnect/UTS credentials

Multiple Login Modes        Supports m-PIN, biometric authentication, and OTP-based guest login

Smart Wallet Integration   Auto-linking of R-Wallets from UTS App for ticket booking transactions

User-Centric Approach

• The app is being actively tested, and users are encouraged to provide feedback during the beta phase.
• CRIS is monitoring performance and issues for improvement before the final public release.
• The government envisions technological integration to ensure efficient, smarter, and citizen-friendly rail services.

In News:

The Union Budget 2025–26 has accorded the highest-ever allocation of ?32,646 crore to the Ministry of Labour and Employment, representing an 80% increase over the previous year's Revised Estimates.

The enhanced funding reflects the government's strategic focus on employment generation and strengthening social security mechanisms for unorganised workers and gig economy participants.

Key Budgetary Highlights:

1. Employment Generation Scheme:

• ?20,000 crore has been allocated to the new Employment Generation Scheme, double the previous year’s allocation.
• The scheme is aimed at fostering large-scale employment opportunities and skilling across various sectors.

2. Employees’ Pension Scheme:

• Allocation increased by ?300 crore, strengthening retirement security for formal sector workers.

3. PM Shram Yogi Maandhan Yojana (PM-SYM):

• Allocation increased by 37% compared to last year.
• The scheme provides old-age social security to unorganised workers through a voluntary, contributory pension model.

About Pradhan Mantri Shram Yogi Maandhan Yojana (PM-SYM)

Objective:

To provide minimum assured pension and social security to unorganised sector workers, including street vendors, construction workers, agriculture laborers, domestic workers, etc.

Eligibility:

• Indian citizen aged 18–40 years
• Monthly income below ?15,000
• Not a member of EPFO, ESIC, or NPS

Key Features:

• Minimum Assured Pension: ?3,000 per month after 60 years of age.
• Voluntary and Contributory Scheme:
  • Contributions made via auto-debit from bank accounts.
  • 50:50 matching contribution by the Central Government.
• Pension Fund Management:
  • Administered by the Ministry of Labour and Employment.
  • Implemented by LIC and CSC e-Governance Services India Ltd.
  • LIC acts as the Pension Fund Manager.

Family Pension Provision:

• In case of subscriber's death:
  • Spouse receives 50% of the pension amount as family pension.
  • If death occurs before 60 years, the spouse may continue contributions or exit the scheme as per norms.

Exit Provisions:

• Exit before 10 years: Subscriber's share with accrued interest is returned.
• Exit after 10 years but before 60 years: Entire contribution with interest returned to the subscriber.

Social Security for Gig Workers

Recognising the gig economy as a critical pillar of India’s modern workforce, the government has taken key steps to enhance their social security:

• e-Shram registration
• Provision of unique identity cards
• Access to healthcare benefits under PM Jan Arogya Yojana
• Expected to benefit around 1 crore gig workers

In News:

Finance Minister Nirmala Sitharaman announced the launch of a National Geospatial Mission in the Budget 2025-26.

Key Highlights:

Objective: To modernize land records, enhance urban planning, and create a robust geospatial infrastructure to support India’s broader development goals, including sustainable growth, efficient governance, and improved public service delivery.

Key Features of the Mission:

• Modernization of Land Records:
  • Digitization and updation of land records using geospatial technology.
  • Aim to reduce land disputes and promote efficient and transparent land use.
• Urban and Infrastructure Planning:
  • Provides high-resolution geospatial data for informed urban planning.
  • Supports better design and execution of infrastructure through integration with the PM Gati Shakti framework.
• Development of National Geospatial Data Infrastructure (NGDI):
  • Integrates geospatial data from multiple departments and ministries.
  • Enables seamless access and interoperability for users across sectors.
• Open Geospatial Data Policy:
  • Encourages private sector participation by allowing access to non-sensitive, high-resolution data.
  • Reduces reliance on foreign geospatial data providers.
• Sectoral Impact:
  • Agriculture: Precision farming, resource mapping, and yield optimization.
  • Disaster Management: Enhances early warning systems and response planning.
  • Environmental Monitoring: Facilitates conservation, deforestation tracking, and ecosystem health analysis.
  • Transportation: Improves logistics, routing, and infrastructure placement.
  • Climate Monitoring: Aids in data-driven climate action and adaptation planning.
• Technological Integration:
  • Utilizes emerging technologies such as AI, drones, and quantum computing for spatial data collection and analysis.
  • Promotes research and development in geospatial science to drive innovation.
• Support to Private Sector:
  • Anticipated growth in demand for services from geospatial startups, drone companies, and mapping enterprises.
  • Strengthens India’s indigenous geospatial capability aligned with the booming global geospatial market (projected to reach $1,064 million by 2030).

Significance and Alignment with National Goals:

• Enhances transparency and efficiency in land governance.
• Contributes to sustainable urban development.
• Aligns with Digital India and Atmanirbhar Bharat by reducing data dependency on foreign sources.
• Acts as a foundational enabler for India’s development agenda, particularly in areas of resource management, climate resilience, and national security.

In News:

• Recently, the Union Government has introduced the PM Dhan Dhanya Krishi Yojana which aims at enhancing agricultural productivity.
• Objective: To boost agricultural productivity, modernize farming practices, and enhance rural prosperity by addressing region-specific challenges in backward agricultural districts.

Key Features:

• Integrated Approach:
  • Consolidates multiple existing agricultural schemes under one umbrella for greater synergy and implementation efficiency.
  • Draws inspiration from the Aspirational Districts Programme, which has improved socio-economic outcomes in backward regions.
• District-Specific Interventions:
  • Focuses on districts with:
    • Low crop productivity
    • Moderate crop intensity
    • Limited institutional credit access
  • Implements customized strategies based on the unique challenges of each region.
• Core Focus Areas:
  • Enhancing farm productivity through modern technology.
  • Improving irrigation infrastructure.
  • Increasing formal credit availability to reduce dependence on informal moneylenders.
  • Promoting crop diversification and sustainable agriculture.
  • Strengthening post-harvest infrastructure like storage at Panchayat and block levels.
• Technology-Driven Solutions:
  • Encourages adoption of climate-resilient and precision farming.
  • Supports digital access to credit and advisory services.
• Financial Inclusion:
  • Strengthens linkages with government financial programs, microfinance institutions, and banks.
  • Aims to reduce rural indebtedness and promote formal financial participation.
• State and Centre Collaboration: Implementation will involve both central and state governments, ensuring localized solutions with national support.
• Reducing Distress Migration: By improving rural livelihoods and opportunities, the scheme aims to make migration a choice rather than a compulsion.

In News:

In the Union Budget 2025, Finance Minister Nirmala Sitharaman announced that the National Bank for Financing Infrastructure and Development (NaBFID) will set up a partial credit enhancement facility to promote corporate bond issuance in the infrastructure sector.

Need for Credit Enhancement:

• Pension and insurance funds in India, as per regulatory norms, can invest only in AA-rated or higher securities.
• Most infrastructure firms issue bonds rated below this threshold (often "A" rated).
• Partial credit enhancement will elevate such bonds to AA ratings, enabling large-scale participation from long-term institutional investors.

Significance:

• Currently, pension and insurance funds prefer government bonds. However, with the government's ongoing fiscal consolidation, sovereign bond issuance is expected to decline.
• This measure provides alternative, long-term investment avenues for these funds.
• Enhances liquidity in the corporate bond market, especially for infrastructure players.
• Helps in reducing infrastructure companies' dependence on banks for funding.

About NaBFID:

• Established: 2021 under The National Bank for Financing Infrastructure and Development Act, 2021.
• Type: Development Finance Institution (DFI).
• Regulator: Reserve Bank of India (RBI) as an All-India Financial Institution (AIFI).
• Purpose: Bridge gaps in long-term, non-recourse infrastructure financing and promote bond and derivatives markets in India.

Development Finance Institutions (DFIs):

• Government-owned or public sector-backed institutions that finance large-scale, long-gestation projects.
• Provide medium (1–5 years) and long-term (>5 years) financing.
• Raise funds via sovereign borrowings, insurance companies, pension funds, and sovereign wealth funds.
• Offer both financial support (loans, guarantees) and technical support (project viability, consultancy).
• Do not accept public deposits.

Benefits of Partial Credit Enhancement:

• Democratizes access to the corporate bond market for sub-AA-rated firms.
• Attracts long-term capital into infrastructure through safer, credit-enhanced instruments.
• Promotes diversification and deepening of India's debt markets.
• Makes infrastructure financing more cost-efficient and sustainable over the long term.

Challenges Ahead:

• Regulatory streamlining is essential.
• Guarantee fees need optimization to ensure cost competitiveness against traditional bank lending.

In News:

• The National Manufacturing Mission (NMM) has been launched to accelerate India’s transition into a global manufacturing hub.
• This mission is a key component of the Make in India initiative and aims to raise the manufacturing sector’s contribution to GDP from 17% to 25% by 2025.

Scope & Coverage

• Targets small, medium, and large industries across sectors.
• Provides a comprehensive support framework involving policy guidance, execution roadmaps, and governance structures for central ministries and state governments.

Five Core Focus Areas:

• Ease and cost of doing business
• Skilling for future-ready jobs
• Support for a dynamic MSME sector
• Technology availability and innovation
• Enhancement of product quality

Clean Tech Manufacturing Focus

In line with India's sustainable development goals, the mission will promote domestic value addition and build robust manufacturing ecosystems for:

• Solar PV cells
• Electric vehicle (EV) batteries
• Motors and controllers
• Electrolyzers
• Wind turbines
• Very high-voltage transmission equipment
• Grid-scale batteries