Why in news?

The NEET paper leak triggered the Cockroach Janata Party (CJP)-led protests, and Union Education Minister Dharmendra Pradhan has resigned as a result.

However, economists argue that the unrest exposes a far deeper structural problem — rising youth unemployment that threatens India's demographic dividend.

What’s in Today’s Article?

• The Numbers
• Two Troubling Trends
• A Long-Term, Not Just Cyclical, Problem
• Weakening Informal Sector
• The Education-Employment Mismatch
• Why This Threatens India's Demographic Dividend?

The Numbers

• According to the Periodic Labour Force Survey (PLFS), unemployment among Indian youth (15–29 age bracket) rose to 16.2% in June 2026, up from 13.8% in April 2025 — the highest on record since monthly data collection began.
• Caveat: The Ministry of Statistics and Programme Implementation (MoSPI) has cautioned that monthly fluctuations don't necessarily indicate secular trends, given seasonal, academic, and labour market variations.

Two Troubling Trends

• Broad-based rise: Unemployment increased across all six youth categories tracked over 15 months — males and females, at the all-India, urban, and rural levels.
• Falling participation, rising unemployment: Youth unemployment rose even as the Labour Force Participation Rate (LFPR) — the share of people looking for work — declined in nearly every category.
  • Overall youth LFPR fell from 42.7% to 40.3%.
  • Only urban male LFPR rose, reaching 60.1% (up 1 percentage point).
  • Normally, a falling LFPR should reduce unemployment even without new job creation — but this hasn't happened, signalling deeper labour market stress.
• For context: The overall unemployment rate (15+ age group) was a comparatively stable 5.5% in June (versus 5.6% in April 2025), with LFPR at 54.4%.

A Long-Term, Not Just Cyclical, Problem

• Annual data confirms the trend isn't new:
  • Of 36 states/UTs, youth unemployment in 2025 was higher than in 2022 in 13 of them — including Andhra Pradesh (16.2% from 15.1%), Delhi (14.4% from 5.9%), Telangana (18.1% from 12.6%), and West Bengal (10.6% from 8.4%).
  • For young women, the situation is worse: 16 states/UTs saw rising unemployment over the same period.

Weakening Informal Sector

• The informal sector — traditionally a job-absorption cushion — is also faltering:
  • Informal sector job creation fell to 74.5 lakh in 2025, down sharply from 1.1 crore in the year ending September 2024 (MoSPI's Annual Survey of Unincorporated Sector Enterprises).
  • Wage growth slowed to 3.9%, down from 13%.

The Education-Employment Mismatch

• Despite years of additional schooling, less than 7% of male Indian graduates find a permanent salaried job within a year of graduating (Azim Premji University's State of Working India 2026 report).
• For white-collar jobs specifically, this figure drops to just 3.7%.
• An estimated 1.1 crore of 6.3 crore graduates aged 20–29 were unemployed in 2023.
• Graduate youth unemployment (under 25) rose to 39.33% in 2023, up from 35.02% in 1983 — showing this is a persistent structural issue, not a recent shock.

Why This Threatens India's Demographic Dividend?

• India's median age (~29 years) is rising and expected to reach 38 by 2050.
• The current period is the critical window for India's working-age population to earn and drive economic growth — not just build future safety nets.
• As per an Observer Research Foundation paper (March 2026): by the 2040s, the dependency ratio will rise and fiscal space will tighten, meaning demography will no longer automatically drive growth.
• Without productivity, innovation, and institutional gains, progress could stall once India's population peaks.

Conclusion

The CJP protests may have been sparked by a single exam paper leak, but the underlying grievance is structural: a growing mismatch between education and employment, a shrinking informal sector safety net, and a shrinking window to convert India's youth bulge into economic growth.

Without urgent, sustained job creation, India risks squandering its demographic dividend before it fully arrives.

Why in news?

Recently, a methane gas explosion inside the under-construction Head Race Tunnel (HRT) of NHPC's 500 MW Teesta Stage VI Hydropower Project in Samardung, Namchi district (Sikkim), killed 25 workers.

The disaster has renewed scrutiny of hydropower infrastructure safety, project management, and the ecological fragility of the Himalayan region.

What’s in Today’s Article?

• What Happened?
• Why the Explosion Occurred?
• Warning Signs Ignored
• Ecological and Regional Concerns
• Pattern of Himalayan Tunnel Disasters
• Conclusion

What Happened?

• A sudden release of methane trapped in rocks near Tunnel 4B triggered an explosion, giving workers little time to escape.
• Nineteen employees of Patel Engineering Ltd and six personnel of PRW Manpower were inside the tunnel at the time; all 25 were killed.
• Five workers remained trapped roughly 1.5 km inside the tunnel for over 24 hours before rescue operations concluded.

Why the Explosion Occurred?

• Preliminary cause: Sudden explosive release of methane trapped or embedded in rock, likely ignited by drilling sparks.
• How methane accumulates in hills: It occurs as natural gas in porous rock or localised pockets in young, fragile geological formations — common in the Himalayan belt with historical coal-bearing strata. Oxygen-deprived, waterlogged hilly depressions and decomposing organic matter also generate methane.
• Sikkim-specific geology: Though Sikkim has no coalfields, it lies in the Rangit Tectonic Window zone. Geological Survey of India studies found around 1.40 lakh tonnes of coal reserves in southern Sikkim, mainly in Namchi — the disaster site. A regional coal exploration project began there in December 2025.
• Detection challenge: Methane is colourless and odourless. NHPC officials noted that standard tunnel surveys (topographical, geotechnical, geophysical, hydrological, resistivity, utility tests) cannot detect it.

Warning Signs Ignored

• A 2025 paper by five NHPC engineers, presented at an international geology conference in Croatia, documented repeated encounters with flammable gas, unstable rock, cavities, and heavy groundwater inflows during excavation.
• Flammable gas was first encountered in November 2009 under original developer Lanco Teesta Hydro Power Ltd, causing a tunnel fire.
• After NHPC revived the project, methane was again detected seeping through an excavation face, with concentrations reaching nearly one-third of the lower explosive limit.
• Workers alleged prior gas-related fires (six-seven months earlier) injured labourers, but no corrective action was taken; those who raised safety concerns faced job threats.
• Workers also alleged safety equipment (helmets, safety shoes) was provided only during official inspections, and basic medical facilities like bandages were unavailable inside the tunnel.

Ecological and Regional Concerns

• Environmental groups have long warned that extensive tunnelling and blasting across the Teesta basin could destabilise slopes and increase vulnerability to earthquakes and Glacial Lake Outburst Floods (GLOFs).
• The October 2023 South Lhonak GLOF devastated the Teesta valley, destroying the Teesta III dam — reviving concerns about hydropower expansion in the basin.
• These groups have demanded fresh Environmental Impact Assessments for existing and proposed Teesta basin projects, arguing conditions have changed significantly since the GLOF.
• Activists argue the tunnel blast is proof of long-ignored concerns that hydropower tunnels and reservoirs can generate methane, a climate concern beyond just safety.

Pattern of Himalayan Tunnel Disasters

• Tunnelling risk is not isolated to Teesta VI. Notable prior incidents include:
  • Parbati-II Project, Himachal Pradesh (May 2021) — tunnel collapse killed 4 labourers
  • Subansiri Lower Hydroelectric Project, Arunachal-Assam border (June 2022, July 2024) — tunnel roof collapses killed workers
  • Khooni Nallah tunnel, Jammu-Srinagar highway (May 2022) — 10 killed
  • Silkyara Bend-Barkot tunnel, Uttarakhand (November 2023) — 41 workers rescued after cave-in
  • Srisailam Left Bank Canal tunnel (February 2025) — collapse trapped 8 engineers/labourers
  • Tupul Railway Station, Manipur (June 2022) — landslip killed 61, India's worst such disaster
  • Dhauliganga Hydroelectric Project, Uttarakhand (August 2025) — landslip; all 19 trapped NHPC employees rescued

Conclusion

The Teesta Stage VI tragedy is a grim convergence of fragile Himalayan geology, chronic project mismanagement, and disregarded worker safety warnings.

It underscores the urgent need for updated environmental assessments, robust methane-detection protocols, and enforceable safety accountability before India expands infrastructure further into its most seismically and ecologically sensitive terrain.

Why in the News?

• A new study published in Nature Food has found that greenhouse gas emissions from paddy fields worldwide have doubled since the 1960s, with eastern India's rice fields emerging among the global methane hotspots.

What’s in Today’s Article?

• Methane Emissions from Rice Cultivation (Background, How Methane is Produced, Other Factors, etc.)
• News Summary (Major Findings of the Report)

Methane Emissions from Rice Cultivation

• Methane (CH₄) is a potent greenhouse gas, approximately 25 times more effective at trapping heat than carbon dioxide over a 100-year period.
• Agriculture is one of the largest anthropogenic sources of methane, and rice cultivation is the primary agricultural contributor.
• How Rice Fields Produce Methane?
  • Rice is typically grown in flooded (submerged) fields, which create low-oxygen (anaerobic) conditions in the soil. Under these conditions:
    • Methane-producing microbes (methanogens) thrive.
    • They decompose organic matter in the soil and release methane as a by-product.
    • The gas escapes into the atmosphere through the water column and the rice plants themselves.
    • The longer a field remains flooded, the more methane it produces. Continuous irrigation, a common practice in intensive rice farming, significantly amplifies emissions.
• Other Contributing Factors
  • Incorporation of crop residues such as leftover stalks, leaves, and stubble into the soil provides additional organic matter for microbes to decompose.
  • Increased use of nitrogen fertilisers stimulates microbial activity and plant growth, indirectly enhancing methane production.
  • Loss of soil organic carbon reduces the soil's ability to store carbon, turning fields from carbon sinks into carbon sources.

India's Position

• India is the world's top rice producer. The area under paddy cultivation has increased by ~25% since the 1970s and currently covers 55% of India's rainfed harvested area.
• This expansion, combined with intensive farming practices, has made India's rice fields a major contributor to global agricultural emissions.

News Summary: Key Findings of the Study

• Global Emissions Have Doubled
  • 2011-2020: Paddy fields worldwide produced around 1.1 billion tonnes of carbon dioxide-equivalent (CO₂-e) emissions annually.
  • This represents an increase of 90.4% compared to annual emissions in 1961-1980.
• Loss of Soil Organic Carbon - Around half the increase in emissions was driven by the loss of soil organic carbon:
  • In 1961-1980, paddy fields removed 289 million tonnes of CO₂-e emissions annually.
  • By the 2010s, over a third of paddy fields worldwide had begun losing carbon rather than storing it.
• Methane from Eastern India
  • Paddy fields in eastern India were identified among the global methane hotspots.
  • Irrigated paddy fields in India release approximately 3.9 million tonnes of methane per year, slightly more than the annual methane emissions of Germany.
• Future Projections - The study projected that between 2031 and 2050:
  • Annual emissions will increase by a quarter (25%).
  • This rise will be fuelled by global warming, erratic rainfall, and intense use of agricultural inputs.
• Comprehensiveness of the Study - The study stood out for its comprehensive approach, integrating:
  • A global meta-analysis of more than 1,200 field experiments.
  • Process-based ecosystem modelling.
  • Artificial intelligence approaches to quantify greenhouse gas emissions from rice cultivation worldwide.

India's Mitigation Efforts

• While India has not set specific goals to reduce emissions from agriculture, several techniques and incentives are available to farmers.
• System for Rice Intensification (SRI) - The National Innovations in Climate Resilient Agriculture (NICRA) project recommends the System for Rice Intensification (SRI) technique:
  • Young seedlings are transplanted precisely.
  • Fields are not continuously flooded during irrigation.
  • This reduces both water use and methane emissions.
• Other Recommended Practices - Experts suggest that a combination of the following measures could reduce global rice-related greenhouse gas emissions by approximately 10% by mid-century, even under a warming climate:
  • Improved irrigation practices, including alternate wetting and drying (AWD).
  • Optimised fertiliser use to reduce excess nitrogen application.
  • Residue management to control the decomposition of organic matter.
  • Reduced tillage to preserve soil carbon.

Challenges in Adoption

• Despite the availability of mitigation techniques, farmers remain reluctant due to several barriers:
  • Labour shortages for precision techniques like SRI.
  • Lack of technical knowledge and awareness.
  • Changes in rainfall patterns make alternative methods risky.
  • Regional variation in emission reduction potential, which current methods do not adequately address.

Regional Approaches and Innovations

• The KERA-AWD Project
  • The KERA-AWD project, led by the International Rice Research Institute (IRRI), is working to establish processes for cultivating low-emission rice systems in Kerala's Thrissur kole lands & Palakkad Malampuzha canal regions.
  • The project uses a multi-pronged approach, including:
    • Increasing soil organic carbon.
    • Understanding hydrology and aligned irrigation systems.
    • Managing agricultural inputs and residue.
    • Studying soil microbes and farmer preferences.
  • One innovation involves replacing a portion of lime with phosphogypsum to neutralise acidic soils, which has shown a positive impact on reducing emissions in the subsoil surface.
• The Case for Crop Diversification
  • Experts have emphasised that crop diversification is essential for long-term emission reduction:
    • Farmers continue to dedicate large areas to paddy despite India's agro-climatic diversity.
    • Paddy has the largest area under cultivation, often at the cost of regional indigenous crops.
  • An integrated intervention for alternative grains must include:
    • Extension and training services.
    • Involvement of self-help groups.
    • Procurement support for alternative crops.
    • Policies must also prevent further expansion of paddy fields to curb emissions.

Significance for India's Climate Goals

• Agricultural Emissions and Climate Commitments
  • India's agricultural sector contributes significantly to total greenhouse gas emissions.
  • While India has committed to reducing emission intensity under the Paris Agreement, agriculture remains a challenging sector to address.
  • Rice cultivation alone accounts for a substantial share of agricultural methane emissions.
• Food Security vs Emission Reduction
  • India must balance food security concerns with climate commitments.
  • Rice is a staple food for over half of India's population.
  • Any reduction in paddy cultivation must be accompanied by alternative crop support and procurement guarantees.
• State-Level Variation
  • Emission reduction potential varies widely between states due to differences in Topography / Soil type / Irrigation infrastructure / Cropping intensity.
  • A regional approach that considers these factors is crucial for effective mitigation.

Why in News?

• The Reserve Bank of India (RBI) has revived the Foreign Currency Non-Resident (Bank) [FCNR(B)] concessional swap window until September 30, 2026 to attract foreign currency deposits from the Indian diaspora.
• The move aims to strengthen India's foreign exchange reserves, stabilise the rupee amid volatile global financial conditions, and cushion the economy against external shocks.

What’s in Today’s Article?

• FCNR(B) Deposits
• Reasons Behind the RBI Reviving the FCNR(B) Swap Window
• Key Features of the 2026 FCNR(B) Scheme
• Importance of the FCNR(B) Deposits
• Historical Evolution of India's Forex Mobilisation
• Challenges and Risks
• Conclusion

FCNR(B) Deposits:

• FCNR(B) deposits, introduced in 1993, are foreign currency term deposits maintained by Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), and Overseas Citizens of India (OCIs) with Indian banks.
• Deposits are maintained in designated foreign currencies such as - US Dollar (USD), Pound Sterling (GBP), Euro (EUR), Japanese Yen (JPY), Australian Dollar (AUD), and Canadian Dollar (CAD).
• Both principal and interest remain denominated in foreign currency, insulating depositors from rupee depreciation risk.

Reasons Behind the RBI Reviving the FCNR(B) Swap Window:

• The revival comes amid -
  • Rising geopolitical tensions.
  • Volatile global capital flows.
  • Persistent inflation and uncertain global interest-rate cycles.
  • Depreciation of the rupee (around 12% year-on-year against the US Dollar as of July 22, 2026).
  • Declining Foreign Direct Investment (FDI).
  • Large Foreign Portfolio Investor (FPI) outflows, with withdrawals of ₹2.87 lakh crore (January–early June 2026), exceeding the entire FY2025 outflows.
• The objective is to build forex reserves, reduce external vulnerabilities, stabilise the exchange rate, and enhance confidence in India's macroeconomic fundamentals.

Key Features of the 2026 FCNR(B) Scheme:

• Concessional swap facility:
  • RBI offers banks a concessional foreign exchange swap facility for FCNR(B) deposits with 3–5 year maturities.
  • Banks benefit from significantly lower hedging costs, approximately 3% below prevailing FX swap rates.
• Higher interest rates:
  • Banks can offer attractive returns, for example, large banks around 6%, and smaller/private banks up to 7.1%.
  • These rates exceed returns on relatively risk-free US Treasury securities (4–4.4%), making FCNR(B) deposits more attractive.
• Targeted mobilisation: RBI aims to mobilise USD 50–70 billion.
• Strong initial response:
  • Total foreign currency mobilisation has reached USD 20.72 billion.
  • USD 17.4 billion (84%) has come through FCNR(B) deposits alone, making it the dominant source of inflows.

Importance of the FCNR(B) Deposits:

• Compared to volatile portfolio investments, FCNR(B) deposits -
  • Provide relatively stable medium-term foreign currency resources.
  • Strengthen India's external financing position.
  • Help defend the rupee during periods of market stress.
  • Improve forex reserve adequacy.
  • Reduce dependence on volatile short-term capital flows.
• Reuters also reported that the RBI has used part of these inflows to unwind a portion of its large forex forward book, improving reserve management.

Historical Evolution of India's Forex Mobilisation:

• India has previously relied on diaspora resources during external stress.
• For example,
  • 1998: RIBs (Resurgent India Bonds) instrument raises forex after Pokhran-II sanctions.
  • 2000: India Millennium Deposits (IMDs) strengthens reserves following sanctions and the dot-com slowdown.
  • 2013: FCNR(B) Special Scheme counters the "Taper Tantrum"; and mobilised nearly USD 34 billion.
  • 2026: FCNR(B) revival to build precautionary buffers against geopolitical and financial uncertainty.
• Unlike earlier episodes, the current initiative is preventive rather than crisis-driven. For example, India's external position is considerably stronger than during previous crises -
  • Forex reserves exceed USD 650 billion.
  • No Balance of Payments (BoP) crisis.
  • Investment-grade macroeconomic fundamentals.
  • Strong external sector resilience.
• Therefore, the current mobilisation seeks to create additional buffers rather than address an immediate liquidity crisis.

Challenges and Risks:

• Rising external liabilities: Higher FCNR(B) mobilisation increases India's external debt obligations, requiring prudent management.
• Dependence on remittances:
  • Nearly 50% of India's inward remittances originate from West Asia.
  • Persistent regional instability, labour nationalisation policies, slowing recruitment of expatriates, and oil-price volatility could moderate remittance growth.
• Global competition: Banks in the UAE and other Gulf countries are offering attractive US Dollar deposit rates, making it harder for Indian banks to compete for NRI deposits.
• Elevated global interest rates:
  • If US interest rates remain high, investors may prefer - US Treasury securities, global money market funds, and dollar-denominated bonds.
  • This could reduce the relative attractiveness of FCNR(B) deposits.
• Banking constraints: Many small and mid-sized Indian banks lack overseas branches or a presence in GIFT City, compelling them to collaborate with larger banks to extend FCNR(B) benefits to NRI customers.

Conclusion:

• The FCNR(B) scheme demonstrates India's ability to leverage its large global diaspora as a strategic source of foreign currency.
• While it strengthens forex reserves and enhances exchange-rate stability, sustained success will depend on maintaining competitive returns, managing external liabilities prudently, and navigating global geopolitical and financial uncertainties.
• The initiative reflects a shift from crisis management to precautionary macroeconomic resilience-building.

About Ceratocaudia antigua:

• It is a new species of long-necked dinosaur.
• It was discovered following excavations in the Kaladongar Formation of the Kachchh Basin in the Kutch district of Gujarat.
• Living roughly 170 to 180 million years ago during the Jurassic period, this diminutive giant reaches only about seven meters in length, significantly smaller than its more famous 20-meter-long relatives like Brachiosaurus.
• Ceratocaudia is distinguished by several physical traits that set it apart from its closest relatives.
  • The most striking feature is a curved, horn-like crest atop its front tailbones.
  • It also possessed a unique notch on its neck vertebrae and specific shapes in its lower leg bones, the tibia and fibula, which have not been seen in other sauropods.
  • Furthermore, its tail vertebrae show a rare transition from flat-ended joints to "ball-and-socket" joints near the tip, a feature usually reserved for much later dinosaur species.
• The name Ceratocaudia antiqua reflects these physical and historical traits.
  • The genus name is derived from the Greek words ‘cerato’ (meaning horn) and ‘caud’ (meaning tail), referring to the unique spike on its vertebrae.
  • The species name, ‘antiqua’, is Latin for "old" or "ancient," highlighting that this is one of the earliest known macronarian dinosaurs, a group of long-necked giants characterised by their large, boxy skulls and wide nostrils.
• Ceratocaudia now stands as the earliest diagnosable member of its lineage in India and one of the oldest in the world .

About Lake Mansarovar:

• It is a large freshwater lake situated in China's Tibet Autonomous Region.
• It is regarded as one of the holiest lakes in Hinduism, Buddhism, Jainism, and Bon.
• It is one of the highest freshwater lakes in the world.
• It is located adjacent to Lake Rakshastal, which is a saltwater lake. The two lakes are connected by the Ganga Chhu channel.
• The highest peak in the surrounding range is Gurla Mandata (7694 meters). To the north of the lake is magnificent Mount Kailash.
• The Kailash Manasarovar region is a source of the Karnali (a major tributary of the Ganges and the longest river in Nepal) Indus, the Sutlej, and the Brahmaputra (the Yarlung Tsangpo) rivers.
• At present, along with the shores of Mansarovar, there are 5 Buddhist monasteries, and out of those five, Chiu Monastery is the most popular and is located on the northwest shore of the lake.

About Kuldiha Wildlife Sanctuary:

• It is situated in the Balasore District of Odisha.
• It is spread across the Chota Nagpur Plateau region.
• It is connected to Simlipal National Park through hills called Sukhupada and Nato.
• It is characterized by its complex topography, which includes rolling hills, valleys, and plateaus that contribute to its microclimates.
• The local tribal communities, including the Santhal and Munda, maintain a deep-rooted spiritual connection to Kuldiha.
• The sanctuary is also home to unique geological formations, such as the ancient rock shelters adorned with petroglyphs that date back thousands of years.
• Vegetation: It contains mixed deciduous forest.
• Flora: It is dominated by species such as Sal (Shorea robusta) and various bamboo species.
• Fauna:
  • The dense forests of the region are home to wild animals like the elephants, leopards, deer, bison and Malabar giant squirrels.
  • The forest also houses a variety of birds. Some of them are like white-rumped shama, parrot, hornbills, and peafowl.

About State of Food Security and Nutrition in the World 2026 Report:

• It is the UN system’s flagship assessment of global hunger, food insecurity and malnutrition,
• It is produced jointly by FAO, IFAD,(International Fund for Agricultural Development), UNICEF, WFP (World Food Programme) and
• It tracks progress toward SDG 2 through the latest global and regional estimates on food insecurity, diet quality and the global nutrition targets.

Key Highlights of the report 2026

• It showed that while global food security and nutrition improved modestly in 2025, progress remains uneven and insufficient to meet the 2030 targets.
• Hunger affected 7.8 percent of the world’s population, and 2.1 billion people experienced moderate or severe food insecurity.
• Persistent disparities remain, particularly for women, young children and rural communities, and diet quality continues to lag worldwide. 
• The share of undernourished Indians has more than halved over the past two decades, from 21.1 per cent in 2004-06 to 9.8 per cent in 2023-25.
• India’s healthy-diet cost has risen faster since 2017 — up nearly 48 per cent — compared to about 32 per cent in the US over the same period.