Context

• The lack of gender diversity within India’s judiciary is a persistent issue that has significant implications on the fairness and inclusivity of the justice delivery system.
• Despite initiatives to increase women’s participation at entry levels, their representation at higher levels of the judiciary remains disappointingly low.
• Therefore, it is important to analyse the multifaceted nature of the gender gap in India's judiciary, including issues of entry, retention, structural inadequacies, and policy gaps.

An Analysis of Gender Disparity in Judicial Representation

• The gender imbalance within India’s judiciary begins at entry-level positions, although some improvements are evident.
• According to the Supreme Court of India’s State of the Judiciary report in 2023, women account for 36.3% of the district judiciary, and in 14 states, more than half of the new civil judges (junior division) are women.
• However, this progress fades at higher judicial levels, where, as of January 2024, only 13.4% of High Court judges and a mere 9.3% of Supreme Court judges are women.
• Moreover, this disparity is accentuated in certain states, such as Bihar, Chhattisgarh, and Tripura, where women’s representation is minimal or non-existent.
• Such skewed representation creates a funnel effect, restricting the pool of women qualified for elevation to higher courts and exacerbating the gender imbalance.

Reasons Behind Gender Imbalance in Judiciary

• Entry Level Barriers
  • Requirement for Continuous Practice
  • One significant regulatory obstacle is the requirement for continuous practice in some states for eligibility for judicial service positions.
  • Many states' Judicial Service Rules mandate that advocates must have a specific period of continuous, uninterrupted practice before being considered for elevation to the Bench.
  • This rule disproportionately impacts women, particularly those who may need to take career breaks due to family obligations, maternity, or childcare.
  • Unlike their male counterparts, women often struggle to meet this threshold due to a lack of systemic support for their family responsibilities.
• Absence of Maternity Benefits and Minimum Stipends
  • Maternity Benefits and Minimum Stipends; vital support systems for women in demanding professions are often absent or inadequate in the legal field.
  • Without paid maternity leave or financial support, many women are forced to choose between career advancement and family responsibilities.
  • This causes a significant drop-off in female representation before they even reach judicial roles.
  • For example, female advocates balancing family duties may struggle to maintain the continuity required by Judicial Service Rules, making the entry point into judicial positions a significant barrier in their career trajectory.
• Work Culture and Social Expectations
  • Apart from structural barriers, workplace culture and social expectations play a crucial role in shaping the experience of women in the judiciary.
  • The legal profession has historically been male-dominated, with deeply ingrained biases and cultural norms that are often unfavourable to women.
  • This is evident in everyday interactions within courts, where women frequently encounter subtle biases and, at times, overt discrimination.
  • For instance, in courtroom settings and professional gatherings, women judges, advocates, and staff may face challenges to their authority, unequal treatment, and stereotyping.
  • These issues make it harder for women to establish themselves as equals and earn the respect of their male peers.

Another Major Reason for Women’s Low Representation in Judiciary: Retention Challenges

• Unsupportive Policies
  • A key issue here is the unsupportive work environment, which fails to accommodate the needs of women, especially those with caregiving responsibilities.
  • Policies such as harsh transfer requirements illustrate how judiciary regulations often overlook the personal circumstances of female judges, making it difficult for them to maintain long-term stability in their roles.
  • Transfer policies are typically rigid, lacking any flexibility or consideration of family obligations.
  • Since women are still primarily responsible for family care in many cases, these policies add a heavy burden and deter many from continuing in the judiciary.
• Lack of Supportive Infrastructure
  • Another factor that complicates retention is the lack of supportive infrastructure within court premises, which negatively impacts women at all levels of the judiciary.
  • Court complexes across the country often lack basic amenities specifically designed for women.
  • For instance, according to a 2019 survey by the Vidhi Centre for Legal Policy, nearly 100 district courts had no dedicated washrooms for women.
  • In higher courts as well, even women judge often face difficulties accessing adequate washroom facilities, let alone other female staff, lawyers, or litigants.
  • The absence of essentials like sanitary facilities and hygienic waste disposal systems not only affects physical comfort but also communicates a lack of consideration for women’s needs, reinforcing their sense of marginalization in the profession.
• Lack of Family-Friendly Amenities
  • Moreover, the lack of family-friendly amenities, such as feeding rooms and crèches, exacerbates the struggle for women balancing work and family life.
  • While some courts, such as the Delhi HC, have taken initial steps in providing a crèche facility, such resources are severely limited and often come with restrictive age limits, like catering only to children under six years.
  • This renders such amenities ineffective for many women with older children, who still require dependable childcare.

Ways Ahead to Address the Underrepresentation of Women in Judiciary

• Adoption of ‘Female Gaze’ in Policies
  • Adopting a female gaze in policymaking could bridge this gap, ensuring that women’s unique needs are prioritized.
  • Implementing a female gaze involves examining the judiciary’s policies and infrastructure through a feminist lens that recognises how ostensibly neutral regulations can inadvertently disadvantage women.
  • This approach challenges the male-centric perspective often inherent in judiciary committees and Bar Councils, which may lack female representation.
  • By using this lens, the judiciary can better address the gendered impact of policies and create a more inclusive environment for women.
• Prioritising Women’s Needs through Inclusive Policy
  • For effective inclusion of women in the judiciary, policies must be crafted with women’s specific challenges in mind.
  • Greater participation requires a shift towards women-centric perspectives that identify barriers to career growth.
  • For example, former Supreme Court Judge Justice Hima Kohli noted that unconscious gender biases in courts often sideline women in administrative duties.
  • Analysing High Court Building Committees reveals that only three HCs (Delhi, Allahabad, and Himachal Pradesh) have female members, highlighting the lack of representation in infrastructure-related decision-making.
• Increase Female Recruitment in Judicial Administration
  • Beyond infrastructure, a lack of representation in HC Registries and judicial academies worsens the neglect of gender-sensitive policies.
  • As a result, women’s experiences and needs are insufficiently reflected in policies or training programs designed to counter gender bias.
  • Implementing policies that are informed by women’s lived experiences; such as gender-sensitive recruitment, transfer protocols, and support for familial responsibilities, could prevent the marginalization of women in the judiciary.

Conclusion

• The underrepresentation of women in India’s judiciary reflects deeper systemic issues that extend beyond entry-level recruitment.
• Bridging this gap requires a comprehensive overhaul of the judiciary’s policies, infrastructure, and culture to be more inclusive and gender-sensitive.
• Recognising and addressing women’s unique needs through the female gaze would mitigate the unintended impacts of neutral policies and foster an equitable work environment.

Why in news?

The estimated total expenditure for the upcoming U.S. presidential and Congressional elections in November 2024 is approximately $16 billion (around ₹1,36,000 crores).

In contrast, the total expenditure by various political parties for the recent general election to the Lok Sabha in India was about ₹1,00,000 crores, according to the Centre for Media Studies (CMS). This raises various debates surrounding campaign finance (election expenditure) in India.

What’s in today’s article?

• Legislations Governing Campaign Finance in India
• Election expenditure limit in India
• Associated challenges
• Way forward

Legislations Governing Campaign Finance in India

• Background
  • The issue of election funding was not specifically addressed during the Constituent Assembly debates (1946-1950).
  • The first significant laws governing election funding were the Representation of People Act, 1950, and Representation of People Act, 1951.
• Representation of People Act, 1951
  • It does not impose limits on expenditure for political party leaders in disseminating messages.
  • Candidates must maintain accounts of their election expenditures, but political parties are not required to maintain such accounts for promoting official programs.
  • However, parties must disclose contributions over ₹20,000 to income tax authorities and cannot accept donations from government companies or foreign sources.
• Election and Other Related Laws (Amendment) Act, 2003
  • The 2003 Amendment introduced Section 29C, requiring political party treasurers to prepare annual financial reports detailing donations over ₹20,000.
  • These reports must be submitted to the Election Commission before submitting audited accounts to the Income Tax authorities.
  • Non-compliance leads to disqualification from tax relief under the Income Tax Act.
• Companies Act, 1956
  • Under Section 293-A of the Companies Act, 1956, corporate contributions to political parties are limited to five percent of the company's average net profits over the last three years.
• Foreign Contribution (Regulation) Act, 1976
  • FCRA prohibits political organizations from receiving foreign contributions.
• Income Tax Act, 1961
  • Under the Income Tax Act, 1961, contributions to political parties are deductible from income tax calculations.
  • Section 13A mandates that political parties submit annual audited accounts to the Income Tax authorities by a specified date.

Election expenditure limit in India

• Existing limit
  • The election expenditure limit for candidates is ₹95 lakh per Lok Sabha constituency in larger States and ₹75 lakh in smaller States.
  • With respect to Legislative Assemblies, they are ₹40 lakh and ₹28 lakh for larger and smaller States respectively.
  • These limits are set, from time to time, by the Election Commission (EC). There are no limits on the expenditure of political parties during elections.
• Purpose and Reality of Expenditure Limits
  • While limits aim to minimize the influence of wealth in elections and ensure a level playing field, the effectiveness is questionable.
  • The Representation of the People Act mandates candidates keep accurate spending records within these limits and submit affidavits post-election.
  • However, analysis from the Association for Democratic Reforms (ADR) shows most candidates report spending far below the limits, raising doubts about transparency.

Associated challenge

• Political Party Spending — The "Elephant in the Room"
  • Currently, no cap exists on political parties’ expenditures during elections, which can indirectly favor wealthy candidates.
  • Experts argue that real reform requires transparency in party finances and internal democratization to achieve genuine equality for all candidates.
• Possible gap between actual and reported costs
  • The official expenditures declared by the BJP and Congress for the 2019 election were ₹1,264 crores and ₹820 crores, respectively. However, according to a report by the CMS, ₹50,000 crore was spent by various parties during the 2019 election.
  • The report suggests that 35% of this money was spent on campaigns and publicity, while 25% was illegally distributed among voters.
• Unholy nexus between the elected representatives and donors 
  • Elections across the world democracies have become very expensive.
  • Such increased expenditure that is met primarily through large donations creates an unholy nexus between the elected representatives and donors who seek favours. 
• Creates an entry barrier into electoral politics
  • Expensive elections act as an entry barrier into electoral politics for many well-meaning citizens.

Way forward

• Advocacy for State Funding of Elections
  • The Indrajit Gupta Committee (1998) and the Law Commission report (1999) have proposed state funding of elections,
  • They suggested that the government should partially cover the election expenses of candidates nominated by recognized political parties.
  • However, doubts remain regarding the feasibility and implementation of this measure in the current context.
• Simultaneous Elections as a Solution
  • Simultaneous elections are often viewed as a potential solution to the rising costs of elections.
  • While this approach may help reduce campaign and publicity expenditures, it faces challenges related to federalism and the need for constitutional amendments.
  • Moreover, without effective measures to curb illegal cash distribution to voters, simultaneous elections alone may not significantly impact overall election expenditures.
• Proposed Electoral Reforms
  • The Election Commission's 2016 report on proposed electoral reforms outlines practical steps to create a more equitable environment concerning election expenditures:
    • Regulating Financial Assistance: Amend the law to ensure that any financial assistance provided by political parties to their candidates falls within the candidates' prescribed expenditure limits.
    • Ceiling on Party Expenditures: Establish a ceiling on the total expenditures of political parties, set at no more than the expenditure limit for individual candidates multiplied by the number of candidates from that party contesting the election.
    • Expediting Legal Processes: Appoint additional judges in High Courts to facilitate the speedy disposal of election-related cases, serving as a deterrent against violations of expenditure norms.
• Need for Bipartisan Support
  • These reforms require bipartisan political support and prompt implementation to be effective in addressing the challenges associated with election financing in India.

Why in the News?

India is currently grappling with significant challenges in meeting its fertilizer demands due to dependency on imports, especially amidst the ongoing Ukraine and Gaza crises, which could further impact fertilizer availability and prices.

What’s in Today’s Article?

• About Fertilizers (Meaning, Utility, Types)
• Fertilizer Imports (Current Scenario, Trends, Strategic Initiatives, Suggestions, etc.)

About Fertilizers:

• A fertilizer is a chemical product either mined or manufactured material containing one or more essential plant nutrients that are immediately or potentially available in sufficiently good amounts.
• Fertilizers have played an essential role in agricultural production, providing vital nutrients for crops, increasing demands over the years.
• As an agrarian country, India is home to numerous small and marginal farmers and is often plagued by low productivity and low quality.
• Crops are mainly rain-fed and cultivated on a single piece of land over time, decreasing soil fertility in many regions.
• Thereby, increasing quantities of nitrogen fertilizers have been used in the country.

Macro & Micro Elements in Fertilizers:

• Macro Nutrients: Nitrogen (N), Phosphorus (P), Potash (K), Calcium, Sulfur (S), and Magnesium are known as macro-nutrients (required in comparatively larger amounts).
• Micro Nutrients: Iron (Fe), Zinc (Zn), Copper, Boron, Manganese Molybdenum, Chloride, and others are the micro-nutrients (required in a smaller quantity) for the growth and development of crop plants.
• Among the various types, NPK (nitrogen, phosphorus, and potassium) fertilizers are the most common ones, and Urea stands as the most highly consumed fertilizer in India.
• India is the second-largest consumer of fertilizers globally, with an annual consumption of more than 55.0 million metric ton.

Current Fertilizer Import Scenario:

• India’s domestic fertilizer production does not meet its full demand, creating a dependency on imports. As per the 2023 Standing Committee of Parliament report:
  • Urea: 20% of the domestic requirement is imported.
  • Diammonium Phosphate (DAP): 50-60% of the demand is met through imports.
  • Muriate of Potash (MOP): 100% dependency on imports.
• The report stresses a need for self-reliance in fertilizer production to stabilize supplies.

Production and Consumption Trends:

• India’s annual fertilizer consumption in 2021-22 was 579.67 lakh metric tonnes (LMT), with:
  • Urea: 341.73 LMT
  • DAP: 92.64 LMT
  • MOP: 23.93 LMT
  • NPK (Nitrogen, Phosphorus, and Potassium): 121.37 LMT
• Domestic production for the year totalled 435. 95 LMT, leaving a shortfall of 143.72 LMT. Notably, MOP is entirely imported due to the lack of local production.

Impact of the Ukraine and Gaza Conflicts:

• Experts, at the Food and Agriculture Organization (FAO), highlighted potential volatility in fertilizer prices due to the Ukraine and Gaza conflicts. This unrest could:
  • Affect oil prices, impacting petroleum-based fertilizer production.
  • Disrupt imports from Russia and West Asia, two significant suppliers for India’s fertilizer imports.

Financial Burden of Fertilizer Subsidies:

• The Indian government has allocated substantial funds to support fertilizer affordability. In the 2023-24 Budget:
  • Total subsidy: ₹1.79 lakh crore.
  • Indigenous Urea subsidy: ₹1.04 lakh crore.
  • Imported Urea subsidy: ₹31,000 crore.
  • Indigenous P&K Fertilizer subsidy: ₹25,500 crore.
  • Imported P&K Fertilizer subsidy: ₹18,500 crore.
• These subsidies, while necessary for farmers, impose a heavy financial burden on the government.

Strategic Initiatives for Self-Reliance:

• Experts recommend increasing India’s production capacity and reducing reliance on imports:
  • New Urea Plants: Since the 2012 investment policy, six new urea plants have been established, adding 76.2 LMT to India’s production capacity. Currently, 36 urea plants operate, with recent additions like Ramgundam, Gorakhpur, Sindri, and Barauni facilities.
  • Shift to Sustainable Fertilizers: Emphasis on nano urea and natural farming could reduce chemical fertilizer usage and dependency.
  • Investment in Domestic Production: The Standing Committee suggests fostering a favorable environment for investments from public, cooperative, and private sectors in fertilizer manufacturing.

Policy Recommendations and Future Outlook:

• The Standing Committee recommends:
  • Increasing incentives for fertilizer manufacturing within India.
  • Encouraging use of nano urea and shifting focus to organic and sustainable farming practices.
  • Investing in infrastructure to better utilize existing fertilizers efficiently.
• By expanding production capacities and promoting sustainable agricultural practices, India could gradually reduce its dependency on imported fertilizers, stabilizing the domestic market and insulating it from global disruptions.

Why in News?

The Finance Ministry’s latest monthly economic review points to evidence of a slowdown in urban demand as reflected in the performance of various indicators during the first half of FY25.

It summarises key factors contributing to the shifting economic landscape in India, highlighting challenges and potential growth avenues.

What’s in Today’s Article?

• Performance of the Indian Economy
• Policy Responses and Future Outlook of the Indian Economy
• Conclusion

Performance of the Indian Economy:

• Overview:
  • India’s economic growth faces a slowdown in urban demand, with rural resilience offering partial balance.
  • While rural areas show increasing consumption, urban centres experience demand softness due to high food inflation, weakened credit growth, and increased household expenses.
• Urban demand challenges:
  • Softening demand in consumer goods:
    • 
    • Major fast-moving consumer goods (FMCG) companies, such as Tata Consumer Products and Nestle India, signal a decline in urban demand due to high food inflation, especially in metropolitan regions.
    • Auto companies also report demand slowdown, exacerbated by seasonal factors like monsoon rains and election-related spending restrictions.
  • Decline in economic indicators:
    • 
    • GDP: India's Q1 FY25 GDP growth moderated to 6.7%, with projections for further decline in Q2 due to weakened urban investment and consumption.
    • Corporate profits: A review of listed companies' Q2 results shows slowing profit growth, largely due to rising input costs. Crisil noted this as the slowest growth in the last 16 quarters.
    • Real wages and spending: Urban wages have also stagnated, with growth in salary outlays falling from 1.2% in Q1 to 0.8% in Q2 FY25, indicating reduced consumer spending capacity.
  • Inflationary pressures:
    • Persistent food inflation has made the Reserve Bank of India (RBI) cautious about rate cuts.
    • RBI Governor emphasises a flexible approach to inflation management, avoiding premature easing of monetary policy.
  • Rural demand resilience:
    • FMCG and auto sales:
      • Rural consumption shows positive momentum, reflected in FMCG volume sales growth and rising tractor and three-wheeler sales.
      • Nielsen IQ data shows rural FMCG sales rose by 5.2% in Q1 FY25, compared to 4% the previous year.
    • Agriculture and wage growth: Real wage growth for agricultural and non-agricultural rural workers supports rising consumption, bolstered by a favourable monsoon season.

Policy Responses and Future Outlook of the Indian Economy:

• Government and RBI initiatives:
  • Government expenditure:
    • Increased government spending post-election season could stabilise growth, with a strong capital expenditure plan expected from September to March.
    • Central government expenditure in the first five months of FY25 reached Rs 16.52 lakh crore, down 1.2% from the previous year, indicating room for expansion.
  • RBI’s monetary stance: The RBI remains flexible, cautiously monitoring inflation before adjusting rates. RBI continues to support growth by balancing inflation concerns with strategic policy measures.
• Festive demand and external stimuli:
  • Festive season: With upcoming festivals, consumer discounts and demand are anticipated to lift sales. This boost may partially offset the urban slowdown.
  • Global influences: Potential monetary easing by the US Federal Reserve may encourage capital inflows to India, supporting investment and growth in the coming quarters.

Conclusion:

• India’s economic outlook is mixed, with rural resilience and government spending likely to stabilise growth despite urban demand challenges.
• High inflation and global uncertainties remain key concerns, but fiscal policies and a strategic monetary stance from the RBI provide a foundation for sustainable recovery.
• The evolving economic environment will require continued data-driven adjustments to maintain growth momentum.

Why in news?

The Centre is reportedly preparing to conduct the Census, which was delayed in 2021 due to Covid-19. Although official confirmation is pending, the Census is expected to begin next year.

This exercise is crucial as it ties into two major issues: delimitation of Parliamentary constituencies, stalled for five decades, and the implementation of women’s reservation in Parliament.

India's Census, which has followed a decadal schedule since 1881, missed its 2021 mark for the first time. While the pandemic was largely over by 2022, allowing a Census in 2023 or 2024, the government appears to have postponed it to align with planned constituency reorganisation.

What’s in today’s article?

• Census in India
• Census and delimitation
• Demand for Caste Data in Upcoming Census

Census in India

• About
  • Population Census provides basic statistics on state of human resources, demography, culture and economic structure at local, regional and national level.
  • Beginning in the year 1872, when the first census was conducted non-synchronously, the census enumeration exercise in India is carried out in every 10 years.
    • The first synchronous census was taken under British rule in 1881, by W.C. Plowden, Census Commissioner of India.
  • The responsibility of conducting the decadal census rests with the Office of the Registrar General and Census Commissioner of India, Ministry of Home Affairs.
• Legal/Constitutional basis of Census
  • Population census is listed in Union List (entry 69) of Seventh Schedule in Indian Constitution.
  • Census is conducted under the provisions of the Census Act, 1948.
• Process of census enumeration
  • The Census Operations in India have been carried out in two phases:
    • Houselisting and Housing Census and
    • Population Enumeration.
  • The Population Enumeration follows the Housing Census within a gap of six to eight months.
  • In Population Enumeration phase each person is enumerated and her/his individual particulars like Age, Marital status, Religion, mother tongue etc.

Census and delimitation

• Delimitation and Its Suspension
  • Delimitation, mandated by the Constitution, adjusts the number of Parliamentary and Assembly constituencies based on population, ensuring equal representation.
  • It ensures a fair division of geographical areas so that all political parties or candidates contesting elections have a level playing field in terms of a number of voters.
    • Article 82 and Article 170 of the Constitution empowers the Parliament to readjust the allocation of seats in the Lok Sabha and the Legislative Assemblies of States respectively, after every census.
  • However, this process has been suspended since 1976 due to political disagreements.
    • Following a 2001 Census, the 2002 delimitation exercise only redrew constituency boundaries without changing their number.
    • Southern states oppose delimitation, fearing that changes would reduce their representation despite their success in population control.
  • As of the 84th Constitutional Amendment (2001), delimitation is postponed until at least 2026, thus making 2031 the earliest opportunity for it if based on the Census.
• Immediate delimitation might not be possible
  • The 84th Constitutional Amendment restricts delimitation based on Census data from the first Census "taken after the year 2026."
  • Thus, even if the Census begins in 2025 and completes in 2026, immediate delimitation might not be possible unless the amendment is revised.
  • An amendment to the existing provision may be required if delimitation is to proceed in time for the 2029 Lok Sabha elections.
• Challenges of Political Consensus and Southern States’ Concerns
  • The suspension of delimitation since 1976 stems from political disagreements, especially with Southern states.
  • These states argue that accounting for current population figures would unfairly reduce their Parliamentary representation, penalizing them for successful population control.
  • Their support for delimitation may hinge on receiving compensations or other reassurances.
  • Additionally, the 128th Constitutional Amendment, passed to reserve 33% of seats in Parliament and State Assemblies for women, requires a delimitation exercise before implementation, further tying delimitation to upcoming political reforms.
• Role of the 16th Finance Commission
  • The 16th Finance Commission, due to submit its report next year, will address the distribution of financial resources between the Centre and states, which could impact state-level negotiations regarding delimitation.

Demand for Caste Data in Upcoming Census

• The demand
  • There is a growing expectation that the next Census may include caste data, addressing demands from some political parties for a caste census.
    • Caste census means inclusion of caste-wise tabulation of India's population in the Census exercise.
• Background
  • Caste was enumerated in British India Censuses (1881-1931).
  • Post-Independence, the 1951 Census excluded caste enumeration except for SCs and STs, who continue to be counted.
    • Caste data were collected for the 2011 census but the data was never made public.
  • In 1961, the GOI recommended states conduct their own surveys for state-specific OBC lists, as there were no central reservations for OBCs at that time.
  • Though Census is a Union subject, the Collection of Statistics Act, 2008 allows States and local bodies to gather necessary data, as seen in Karnataka (2015) and Bihar (2023).

Context

• India's commitment to combating climate change and reducing emissions is evident in its recent efforts to promote electric vehicles (EVs), specifically electric buses.
• The recent approval of the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme by the Union Cabinet marks a significant step forward.
• Analysing the current state, challenges, and potential solutions for private-sector integration, it is important to explore how India's transition to electric buses can be accelerated to meet ambitious climate goals.

Public Sector-Driven Electric Bus Deployment

• The PM E-DRIVE scheme builds on previous initiatives like the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India (FAME) scheme, which provided financial support to public entities for EV adoption.
• Under FAME I and FAME II, over 7,500 electric buses were approved for purchase subsidies, but these subsidies were limited to state transport undertakings, city transport bodies, and municipal corporations.
• As a result, the shift toward electric buses has primarily been driven by the public sector.
• However, public transport buses represent only 7% of India's 24 lakh registered buses, leaving private bus operators—who account for 93% of the bus fleet—largely unsupported.
• This limited approach hampers the potential for large-scale adoption of electric buses, as the transition of private buses is essential for meaningful environmental impact.

Challenges in Transition to Electric Buses for Private Operators in India

• Financing Difficulties and High Upfront Costs
  • Financing remains a primary obstacle for private bus operators considering a shift to electric buses.
  • Unlike public sector entities, which benefit from government incentives under schemes like FAME, private operators face a high-cost barrier with limited access to subsidies.
  • This financing challenge is exacerbated by the high initial costs associated with purchasing electric buses, which are typically more expensive than their diesel counterparts.
  • Private bus operators often struggle to secure affordable financing options due to the perceived high-risk profile of electric buses.
  • This perception arises from several factors, including uncertainties surrounding the lifespan of EV batteries and a lower perceived resale value, which reduces their effectiveness as collateral.
• Charging Infrastructure Limitations
  • Access to reliable and affordable charging infrastructure poses another substantial hurdle for private bus operators.
  • The FAME scheme funds charging stations primarily for public transport units, which are typically located within government-operated bus depots.
  • Private operators, however, lack access to these facilities and are therefore required to invest independently in charging infrastructure.
  • For most private operators, who often operate fleets of fewer than five buses, establishing proprietary charging stations is economically impractical.
  • Constructing a charging station involves high capital expenditure for both land and equipment.
  • The land required for charging stations—estimated between 70 to 120 square meters—is often expensive, particularly in urban areas where real estate costs are high.
• Operational Constraints and Limited Charging Access
  • Even if private operators can access or establish charging stations, operational constraints and limited access make it difficult to integrate electric buses into their fleets effectively.
  • For instance, the typical operational range of an electric bus on a single charge—usually between 250 and 300 kilometres—can be a limiting factor for long-distance intercity routes.
  • Without accessible, strategically placed charging stations along high-traffic corridors, private operators are restricted in the routes they can cover.
• Perceived High-Risk Profiles and Uncertainty Around Battery Life
  • Uncertainty around the lifespan and replacement costs of electric vehicle batteries adds to the challenges private operators face in transitioning to EVs.
  • Battery health degrades over time, particularly with frequent high-charge cycles, which may reduce vehicle range and reliability.
  • Battery replacement, which is typically necessary after a few years of operation, represents a substantial expense, often accounting for a significant portion of the initial vehicle cost.
  • This perceived risk further complicates financing, as financial institutions may hesitate to provide favourable loan terms for vehicles with uncertain long-term value.
  • The resale market for electric buses is also underdeveloped in India, making it difficult for operators to offset depreciation costs.
• Regulatory and Policy Gaps
  • Current national policies and incentive schemes largely exclude private bus operators, focusing primarily on state and city transport undertakings.
  • This policy gap means that private operators have limited support for transitioning to electric buses, resulting in a lopsided growth model that prioritises public sector EV adoption but neglects private sector needs.
  • Additionally, regulatory inconsistencies across states can create further complications, as differing rules on permits, tariffs, and land usage can make it challenging for private operators to invest confidently in electric mobility.

Potential Solutions to Drive Private Sector Transition

• Addressing Financial and Infrastructure Challenges
  • To accelerate private electric bus adoption, it is essential to address these financing and infrastructure challenges.
  • First, offering favourable financing options, such as interest subsidies, longer loan tenures, and credit guarantees, could alleviate the financial burden on private operators.
  • These measures, as highlighted by the ICCT report, could reduce investment risks for financiers and make electric buses more accessible to private operators.
• Development of Shared Public Infrastructure
  • Secondly, developing shared public charging infrastructure within cities and along high-traffic intercity corridors is crucial.
  • State governments, leveraging financial subsidies under the PM E-Drive scheme, can take the lead in establishing accessible charging stations.
  • Structuring tenders for charging infrastructure on a design-build-operate-transfer (DBOT) basis and providing additional fiscal incentives could further encourage private investment.
  • By ensuring minimum daily energy consumption guarantees, states can make these investments economically viable, especially for small private operators.
• Innovative Business Models to Support EV Transition
  • The Battery-as-a-Service (BaaS) model, which separates battery ownership from the vehicle, presents a viable solution to reduce upfront costs.
  • By adopting battery swapping and usage-linked leasing, like systems implemented in China and Kenya, private operators can minimise financial strain while benefiting from the cost savings associated with electric buses.
  • Platforms such as India’s Vertelo by Macquarie offer solutions tailored to reduce barriers for private sector operators.
  • Scaling BaaS could provide significant incentives for private operators, facilitating widespread adoption of electric buses and promoting competitive growth within India’s EV market.

Conclusion

• As India moves forward with the PM E-DRIVE scheme and strives to meet its climate goals, integrating private bus operators into the electric bus ecosystem is imperative.
• The government’s current support for public sector EV adoption is essential, but it must be expanded to create an inclusive framework that encompasses the private sector.
• Addressing financial barriers, developing charging infrastructure, and exploring innovative business models can bridge the gap, enabling a holistic transition to electric buses across India.

Why in News?

The G20 Independent Expert Group has issued a report card assessing the progress made by Multilateral Development Banks (MDBs) in expanding lending capacity and mobilising private capital.

This assessment highlights the gap between current achievements and the ambitious "triple agenda" needed to meet global development and sustainability goals.

The expert group had been set up under the G20 Indian Presidency and had Fifteenth Finance Commission Chairman NK Singh and former US Treasury secretary Lawrence Summers as co-convenors.

What’s in Today’s Article?

• What are Multilateral Development Banks (MDBs)?
• Why is Reforming MDBs Essential?
• Key Recommendations for MDB Reforms
• Way Ahead to Strengthen MDBs
• Conclusion

What are Multilateral Development Banks (MDBs)?

• MDBs are financial institutions providing loans, grants, and technical assistance to foster economic and social development in low- and middle-income countries.
• These include the World Bank Group, Asian Development Bank, African Development Bank, Inter-American Development Bank, etc.
• MDBs have been pivotal in addressing poverty, building infrastructure, and enhancing human capital across developing nations.
• However, evolving global needs now call for reforming MDBs to better support countries in achieving sustainable and inclusive growth.

Why is Reforming MDBs Essential?

• Outdated legal and institutional framework:
  • The current frameworks of MDBs, established post-World War II for reconstruction, no longer align with the digital age's complexities and challenges.
  • They do not fully reflect the current realities and aspirations of developing nations, particularly those in the Global South.
• Limited private financing engagement:
  • MDBs were urged to mobilise $740 billion annually in private financing to meet climate and sustainable development goals (SDGs).
  • However, current private sector involvement falls short, with MDBs securing only about $70 billion in private capital in the past year.
• Limited local currency lending: While MDBs have expanded guarantees and risk mitigation tools, local currency lending remains underdeveloped, with few successful examples to date. 

Key Recommendations for MDB Reforms:

• Triple mandate for MDBs:
  • Eliminating extreme poverty.
  • Promoting inclusive growth.
  • Financing global public goods with an emphasis on sustainable development and climate goals.
• How to meet this triple mandate? MDBs were advised to triple their financial commitments, establish a "Global Challenges Funding" mechanism, and significantly boost private sector engagement.
• Expanding lending capacity:
  • MDBs have made strides in expanding their lending capacities:
    • A 33% increase in lending capacity.
    • Improved use of balance sheets and guarantee platforms.
    • Reforms to the capital adequacy framework to optimise resources.
  • Despite this progress, MDBs are still short of the targeted tripling in capacity required to fulfil their expanded mandate.
• Innovations in capital mobilisation:
  • MDBs introduced innovative funding mechanisms, including hybrid capital options (non-voting shares) to attract additional financing.
  • Although some member states showed interest, uptake has been limited.
• Private sector involvement:
  • There is the need to change the MDB cultures to lower perceived risks for private capital.
  • Involving private investors, working with rating agencies, and creating an atmosphere that is conducive to investment is the need of the hour.

Way Ahead to Strengthen MDBs:

• Enhancing performance and relevance:
  • Current approaches do not maximise MDBs' potential to mobilise resources, foster policy alignment, and support innovation.
  • Tailored, flexible solutions and diversified instruments are crucial for the dynamic needs of different countries and sectors.
• Improving governance:
  • MDBs' governance structures are often seen as unrepresentative of developing countries.
  • Increased transparency, accountability, and responsiveness are essential to MDBs’ credibility and effectiveness.
• Concessional financing: For the world’s poorest countries.
• Climate-related financing: MDBs have substantially increased climate financing, with commitments reaching $75 billion in 2023 - up from $42 billion in 2019. This includes $50 billion for mitigation and $25 billion for adaptation activities.
• Coordination among MDBs: MDBs are working to harmonise procurement practices and have introduced a digital co-financing portal to facilitate large-scale project coordination.

Conclusion:

• The G20 report card underscores both achievements and gaps in MDB reforms.
• While MDBs have enhanced lending capacity and introduced measures for better private sector engagement, significant efforts are still required to meet the ambitious goals of the “triple agenda.”
• With a strong role to play, India’s leadership and commitment to MDB reforms could help shape a more inclusive, responsive, and effective MDB system for the Global South.

Why in the News?

Spain’s Prime Minister Pedro Sanchez is reaching Vadodara, Gujarat where he and Prime Minister Narendra Modi will hold bilateral talks and inaugurate the Final Assembly Line (FAL) plant of the C295 medium-lift tactical transport aircraft for the Indian Air Force.

What’s in Today’s Article? 

• India – Spain Bilateral Relationship (Historical Ties, Bilateral Trade, Strategic Significance, Common Groupings, Indian Diaspora)
• News Summary

Historical Ties:

• India and Spain established diplomatic relations in 1956.
• Though limited historical interaction existed prior, both nations’ shared democratic values, commitment to global peace, and respect for multiculturalism have formed a strong foundation for bilateral ties.
• High-level visits, including by heads of state, have helped solidify this relationship over the years.

Bilateral Trade:

• Spain is India’s 6th largest trade partner in the European Union.
• Total Trade (2023): US$ 8.25 billion, a 4.2% increase from the previous year.
  • India’s Exports to Spain: US$ 6.33 billion (growth of 5.2%).
  • India’s Imports from Spain: US$ 1.92 billion (growth of 1.05%).
  • Top Indian Exports: Mineral fuels, chemical products, iron and steel, electrical machinery, apparel, nuclear reactors, marine products, and articles of iron and steel.
• Foreign Direct Investment:
  • Spanish FDI in India:
    • US$ 3.94 billion (April 2000 - December 2023), with Spain as India’s 16th largest investor.
    • Over 280 Spanish companies in India, focusing on metallurgical industries, renewable energy, automotive, ceramics, and infrastructure.
    • Major destinations: Maharashtra, Tamil Nadu, Gujarat, Andhra Pradesh, Karnataka.
  • Indian FDI in Spain:
    • ~US$ 900 million; 80 Indian companies in Spain, primarily in software & IT services, pharmaceuticals, chemicals, and logistics.
    • India is among Spain’s top 30 investors globally and top 5 from Asia.
• Trade and Economic Cooperation Framework:
  • India-Spain Joint Commission on Economic Cooperation (JCEC): Established in 1972; has met 12 times, with the latest meeting in April 2023 in New Delhi.
  • India-Spain CEOs Forum: Established in 2015; first formal meeting held in May 2017 in Madrid.

Strategic Significance and Cooperation:

• The strategic relationship between India and Spain is steadily expanding, encompassing areas like defense, counter-terrorism, and cybersecurity:
• Defense:
  • Spain is a key partner in India’s defense modernization, providing expertise in aerospace and naval technology.
  • Spanish companies are involved in defense projects, including submarine technology transfer and collaborations for military aircraft.
• Counter-Terrorism:
  • India and Spain actively cooperate in counter-terrorism and intelligence sharing, recognizing mutual concerns regarding global terrorism.
• Sustainable Development and Climate Action:
  • Both nations are committed to the Paris Agreement and actively collaborate on climate change and sustainable development goals.
  • Spain’s expertise in renewable energy aligns with India’s goal of increasing clean energy sources.

Common Groupings and Multilateral Cooperation:

• India and Spain engage collaboratively through several multilateral platforms, including:
• United Nations: Both countries work together on issues of global peace, sustainable development, and humanitarian aid.
• G20: As members of the G20, India and Spain share a commitment to addressing global economic challenges, trade reforms, and climate action.
• International Solar Alliance (ISA): Spain is a member of the ISA, aligning with India’s initiative to promote solar energy and sustainable development.

Indian Diaspora in Spain:

• The Indian community in Spain is relatively small but has been growing in recent years.
• Population: As of 2023, approximately 55,000 Indians reside in Spain, contributing actively to sectors like hospitality, retail, IT, and healthcare.

News Summary:

• Spain’s PM Pedro Sanchez is visiting India from October 28 to 30, marking the first visit by a Spanish PM in 18 years.
• Sanchez will hold bilateral talks with Prime Minister Narendra Modi in Vadodara, Gujarat, where they will inaugurate the Final Assembly Line (FAL) plant for the C295 tactical transport
  • It is India's first private military transport aircraft production facility, developed by Tata Advanced System Limited (TASL) in partnership with Airbus Defence and Space.
  • Under the $2.5 billion contract, 56 C295 aircraft will be supplied, with the first 16 delivered from Spain and the remaining 40 assembled in Vadodara.
• This plant is expected to produce its first "Made-in-India" C295 in 2026, with all deliveries by 2031.
• The project aims to build a complete industrial ecosystem in aerospace manufacturing in India, with contributions from Bharat Electronics Ltd, Bharat Dynamics Ltd, and private MSMEs.
• Several MoUs are expected to be signed, furthering cooperation in trade, IT, infrastructure, renewable energy, defence, pharma, and tourism.

Why in news?

The Union Minister of Fisheries, Animal Husbandry and Dairying, has launched the 21st Livestock Census in New Delhi.

What’s in today’s article?

• Livestock Census
• 21^st Livestock Census
• Findings from the 2019 Livestock Census

Livestock Census

• About
  • The livestock census is a comprehensive survey conducted to collect data on various livestock species, including cattle, buffaloes, sheep, goats, pigs, and poultry.
  • The most recent census was conducted in 2019.
• Benefits of Livestock Census for India
  • Data Collection and Analysis: The census provides essential data on the number and types of livestock, their distribution, and trends over time. This data helps in formulating policies and programs for the livestock sector.
  • Planning and Policy Formulation: Accurate livestock data aids the government in developing policies related to livestock health, breeding, and management. This can lead to better resource allocation and targeted interventions.
  • Economic Growth: Livestock contributes significantly to the agricultural economy. The census helps identify opportunities for growth and investment in sectors like dairy, meat production, and poultry farming.
  • Resource Management: Understanding the livestock population helps in effective resource management, including feed and water resources, land use, and veterinary services.
  • Food Security: By assessing livestock numbers and health, the census can inform strategies to enhance food production, improve nutrition, and ensure food security for the population.
  • Employment Generation: The livestock sector provides employment opportunities to millions, especially in rural areas. The census helps track employment trends and develop skill development programs.
  • Sustainability and Environmental Management: Data from the census can guide sustainable practices in livestock management, helping to minimize environmental impact and promote animal welfare.
  • Market Development: The information gathered can assist in market analysis and development, leading to better pricing and market access for farmers.
  • Research and Development: The census supports research initiatives in animal genetics, health, and nutrition, fostering innovation in the livestock sector.
  • Integration with Other Sectors: Livestock plays a crucial role in the broader agricultural ecosystem. The census helps integrate livestock management with crop production, enhancing overall agricultural productivity.

21^st Livestock census

• Overview of the Livestock Census
  • Conducted every five years, India’s livestock census counts all domesticated animals, poultry, and stray animals.
  • It collects details on species, breed, age, sex, and ownership.
  • Starting in 1919, 20 censuses have been completed, with the 21st census scheduled for October 2024 to February 2025, covering 30 crore households with help from around 87,000 enumerators.
• Animals Included in the 21st Census
  • The 21st census will document sixteen species, including cattle, buffalo, yak, sheep, goats, pigs, and others, along with 219 indigenous breeds recognized by ICAR-NBAGR.
  • Poultry birds, such as chicken, duck, turkey, and emu, will also be counted.
• Objectives of the Livestock Census
  • The census supports employment and economic growth in rural areas, as the livestock sector contributes to 4.7% of the nation’s Gross Value Added (GVA) and 30% of the agriculture sector’s GVA.
  • Data collected helps in policy development, estimating GVA, and monitoring Sustainable Development Goals (SDGs).
    • The Livestock Census will provide data pertaining to Goal 2 (Zero Hunger), and Target 2.5 (to maintain genetic diversity in food and nutrition), specifically Indicator 2.5.2 (The percentage of local livestock breeds that are at risk of extinction) of the SDGs.
• Digitization and New Data Points in the 21st Census
  • Following the 2019 digitized census, the 21st census will also use mobile apps for data collection, monitoring, and reporting, along with tracking collection locations via GPS.
  • The 21st census will capture several new data points. These include:
    • Data on pastoral animals, pastoralists: The census will, for the first time, collect data on the contribution of pastoralists to the livestock sector, their socio-economic status, and livestock holding.
    • More details, granular information: The census will find out the proportion of households whose major income comes from the livestock sector. It will also contain data on the gender of stray cattle.

Findings from the 2019 Livestock Census

• The 2019 census recorded a livestock population of 535.78 million, with:
  • 192.9 million cattle
  • 148.88 million goats
  • 109. 85 million buffaloes
  • 74.26 million sheep
  • 9.06 million pigs
• All other animals together made up only 0.23% of India’s total livestock population.

Why in news?

In August 2024, the Reserve Bank of India (RBI) imposed strict rules on peer-to-peer (P2P) lending platforms. As a result, the industry’s asset under management (AUM) plummeted by 35% — from an estimated ₹10,000 crore to ₹6,500 crore.

The main purpose of P2P platforms is to connect lenders and borrowers, without being directly involved in the loans themselves. There are mixed views on whether P2P platforms can adapt to the changes imposed by RBI. This article explores the sector’s past, present, and possible future.

What’s in today’s article?

• Peer-to-peer (P2P) lending
• Regulation by RBI
• The Uncertain Future of P2P Lending in India

Peer-to-Peer (P2P) Lending

• About
  • 
  • P2P lending is a method of lending money directly to individuals or businesses without a financial institution as an intermediary.
  • This typically occurs through online platforms that connect lenders with borrowers.
  • While P2P loans can be either secured or unsecured, most are unsecured personal loans, with secured loans—usually backed by luxury items—being rare.
  • P2P lending is valued as an alternative financing option due to its distinct characteristics.
• Working
  • Borrower Application: A borrower submits an application on a P2P platform.
  • Risk Assessment: The platform evaluates the borrower's creditworthiness, assigns a risk rating, and sets an interest rate.
  • Investor Matching: Upon approval, the borrower receives loan offers from investors based on their rating and interest rate.
  • Selection: The borrower reviews options and selects a suitable offer.
  • Repayment: The borrower makes regular interest payments and repays the principal at the loan’s maturity.
  • Platform Fees: The platform charges fees to both borrowers and lenders for its services.
• Advantages
  • Higher Returns: P2P lending generally offers investors higher returns than traditional investments.
  • Accessible Funding: It provides a funding option for borrowers who may not qualify for traditional bank loans.
  • Lower Interest Rates: Due to increased competition and lower fees, P2P loans often feature reduced interest rates.
• Disadvantages of Peer-to-Peer Lending
  • Credit Risk: P2P loans carry a higher risk of default since many borrowers have low credit ratings.
  • No Government Protection: Lenders are not insured or protected by government guarantees.
  • Regulatory Limitations: Some regions restrict or heavily regulate P2P lending, limiting access for certain borrowers and investors.
  • Extra charges – Borrowers might encounter additional charges beyond the loan’s interest rate, which can potentially raise the cost of borrowing.

Regulation by RBI

• Early Discussions on Regulating P2P Lending
  • In 2016, RBI began considering regulations for P2P lending to address informal money-lending practices.
  • With global growth in P2P lending and new platforms emerging in India, the RBI released a discussion paper on whether regulation was needed.
  • Concerns included potentially legitimizing P2P lending by regulating it, stifling its growth, and the sector's limited impact on the financial system at the time.
  • After consulting stakeholders, the RBI issued guidelines in 2017 that outlined activities for lenders, set eligibility criteria, and mandated transparency on fees and pricing.
• Regulatory Concerns and Clampdown
  • P2P platforms started behaving like banks by profiting from the difference between borrower interest rates and lender earnings.
  • This led the RBI to intervene, banning practices such as using one lender's funds to replace another's, thus shutting down the secondary market.
  • The RBI's regulations mainly targeted popular features like guaranteed returns based on investment terms and easy withdrawal options, and also required a faster settlement process (T+1).
  • The RBI also required full fee disclosure and prohibited closed-group matching of lenders and borrowers.

The Uncertain Future of P2P Lending in India

• The outlook for P2P lending in India remains unclear.
• A major P2P platform recently halted new customer registrations, resulting in a 30-35% drop in assets under management (AUM).
  • AUM is the total market value of investments that a financial institution, fund manager, or entity manages on behalf of its clients.
• The RBI has been inspecting platforms for compliance, and if secondary market options remain restricted, volumes may decline significantly.
• Some large platforms are even considering relinquishing their licenses.

Why in news?

Israel launched what it described as precise and targeted airstrikes on Iran early on October 26 in retaliation to an Iranian attack on Israel earlier this month. This appears to be a major escalation between the two enemy countries.

What’s in today’s article?

• Why did Israel attack Iran?
• Why are Israel and Iran enemies?
• Israel – Iran conflict and Impact on India

Why did Israel attack Iran?

• October 7 Hamas attack
  • Iran and Israel, with a long-standing hostile relationship, saw tensions worsen after the October 7 Hamas attacks.
  • Iran, which does not recognize Israel's right to exist, backs groups like Hamas and Hezbollah in their fight against Israel.
• Killing of commanders from Iran’s Revolutionary Guard Corps and response of Iran
  • On April 1, Israel struck the Iranian consulate in Syria, killing 16 people, including commanders from Iran’s Revolutionary Guard Corps (IRGC).
  • Iran responded on April 13 by launching a direct missile and drone attack on Israeli soil. Israel then targeted an Iranian missile defense system in Isfahan.
• Death of Hamas leader in Iran
  • The situation intensified on July 31 with the death of Hamas leader Ismail Haniyeh in Tehran, likely by Israeli intelligence agency Mossad.
  • On September 27, Israel assassinated Hezbollah leader Hassan Nasrallah in Beirut, also killing Iranian Brigadier General Abbas Nilforoushan.
  • On October 1, Iran responded with 200 ballistic missiles attack on Israel, causing minimal damage.
• Israel attacks Iran
  • Israel had vowed to hit back after Iran carried out a ballistic missile attack on Israel on 1 October.
  • The recent attack by Israel comes against this backdrop.

Why are Israel and Iran enemies?

• Iran's 1979 Islamic Revolution and its opposition to Israel
  • Iran and Israel, once allies, became adversaries following Iran's 1979 Islamic Revolution, which established a regime ideologically opposed to Israel.
  • Since then, Iran has refused to recognize Israel's right to exist, with its leaders calling for Israel’s destruction.
  • Supreme Leader Ayatollah Ali Khamenei has referred to Israel as a "cancerous tumor" that will be "uprooted and destroyed."
• Shadow war between these two countries
  • The two countries have engaged in a "shadow war," targeting each other's assets without claiming responsibility.
  • Tensions have escalated since the October attacks on Israeli communities by Hamas, a Palestinian group supported by Iran.
  • Israel views Iran as an existential threat due to its rhetoric, support of proxy forces like Hezbollah and Hamas, and its alleged pursuit of nuclear weapons, which Iran denies.

Impact on India

• Fears of Protracted Red Sea Disruption
  • A direct conflict between Israel and Iran would cause a prolonged disruption of the Red Sea shipping route.
  • India is especially vulnerable to these disruptions, as its trade with Europe, the US, Africa, and West Asia—valued at over $400 billion in FY23—relies heavily on the Suez Canal and Red Sea routes.
  • The involvement of Hezbollah's allies, such as the Houthi rebels in Yemen, heightens the risk of attacks on ships using this critical trade passage.
• Impact on Indian Petroleum Exports
  • In August 2024, India's exports fell by 9%, primarily due to a sharp 38% drop in petroleum product exports, which fell to $5.95 billion from $9.54 billion in August 2023.
  • Rising shipping costs and the crisis in the Red Sea have led importers to seek alternative sources, impacting Indian exporters' profitability, particularly standalone refiners.
• European Market Challenges
  • Europe, which accounts for 21% of India’s petroleum exports, has been affected by rising shipping costs.
  • A Crisil report from February 2024 warned that these additional costs would reduce profit margins for petroleum exports, compounding the challenges faced by Indian exporters.
  • India’s overall exports to the European Union increased by 6.8% this year, but sectors like machinery, steel, gems, jewellery, and footwear have faced declines.
  • The rising freight costs are expected to further strain Indian industries reliant on high-volume, low-value exports, making it difficult for them to stay competitive.
• Silver lining - Trade Opportunities in West Asia
  • Despite the conflict, India's trade with Gulf Cooperation Council (GCC) countries has grown by 17.8% between January and July 2024, according to a Global Trade Research Initiative (GTRI) report.
  • India’s exports to Iran also increased by 15.2% during this period, benefiting from the neutrality of regional players such as Saudi Arabia, the UAE, Kuwait, and Qatar, who have stayed out of the conflict.
• Risk to India-Middle East-Europe Economic Corridor (IMEC)
  • The ongoing conflict in West Asia could hinder the development of the IMEC, a strategic project announced during the G20 in 2023.
    • The IMEC plan comprises an Eastern Corridor connecting India to the Gulf region and a Northern Corridor connecting the Gulf region to Europe.
    • It will include a railway and ship-rail transit network, as well as road transport routes.  
  • The IMEC aims to reduce reliance on the Suez Canal by creating faster trade routes through a rail and ship network connecting India to the Gulf and Europe.
  • However, the widening conflict in the region threatens to delay or complicate the corridor’s progress, casting uncertainty over its future.

Why in news?

The Ministry of Electronics and Information Technology (MeitY) issued an advisory urging social media platforms to take responsibility in controlling threats against flights operating from India.

The Ministry highlighted the unrestricted spread of hoax bomb threats due to features like forwarding, resharing, and reposting, which are readily available on social media platforms.

What’s in today’s article?

• Recent bomb threats
• Aviation security architecture
• Handling security threats - Challenges and way forward
• Advisory to curb hoax bomb threats on social media

Recent bomb threats

• Widespread threats disrupted Airlines
  • Over the past two weeks, Indian carriers, including Tata group airlines (Air India, Vistara, and Air India Express), Indigo, Alliance Air, and Star Air, have faced a series of hoax threats.
  • These incidents have led to emergency measures, flight rerouting, and military fighter jet intercepts, particularly in international airspace when emergency transponder codes were activated.
  • Although the threats were hoaxes, they resulted in significant delays and financial losses estimated at ₹13-₹17 lakh per hour for airlines.
• Nature and Source of Threats
  • According to the govt, most threats originated on social media. Intelligence agencies are investigating and focusing on tracking IP addresses and VPN usage.
  • Despite initial suspicions of hoaxes, no potential threat has been overlooked given the scale of India’s daily 4,000 flight operations.
  • Since the start of these incidents, approximately 275 threats have affected around 48,000 flights.

Aviation security architecture

• ICAO’s Aviation Security Guidelines and Directives
  • Most aviation security guidelines are derived from the International Civil Aviation Organization’s (ICAO) Annex 17 on Aviation Security.
  • These guidelines and Standards and Recommended Practices (SARPs) are part of the Chicago Convention.
    • These guidelines mandate global measures against unlawful interference in civil aviation.
  • The ICAO Aviation Security Manual (Doc 8973) provides member states with detailed security procedures.
  • Annex 17 and Doc 8973 are continually updated to address new threats and advancements in technology, though detailed discussions and specific guidance are restricted.
• Security Agencies and Measures in India
  • In India, the Bureau of Civil Aviation Security is responsible for establishing security standards for civilian flights, while the Directorate General of Civil Aviation (DGCA) oversees flight safety.
  • Other involved agencies include the Airports Authority of India, Central Industrial Security Force (CISF), National Security Guard (NSG), Intelligence Bureau (IB), Research and Analysis Wing (RAW), Ministry of Home Affairs, and the judiciary.
• Proposed Amendments to Strengthen Aviation Security Laws
  • In response to recent security threats, amendments are being considered for the Aircraft Act 1934, Aircraft Rules 1937, and other relevant laws.
  • Planned updates include stricter penalties, no-fly list provisions, and expanding legal recourse to address security violations even on the ground.
  • Updates to the Suppression of Unlawful Acts against Safety of Civil Aviation Act, 1982 would further empower authorities to handle in-flight and on-ground security threats.

Handling security threats - Challenges and way forward

• Systemic Issues
  • Although details about recent Indian cases aren’t fully disclosed, these incidents have revealed systemic issues, including gaps in standardized procedures, guidelines, training, technology limitations, communication, and regulatory enforcement within the aviation security system.
• Recommended Technological Investments and Innovations
  • Addressing hoax calls effectively, according to the expert, requires investment in advanced call tracking, AI-powered call analysis, voice stress analysis, and comprehensive threat assessment systems.
  • Emerging technologies, such as quantum computing and aviation cybersecurity frameworks, could enhance security further.
  • The expert also recommended implementing AI-powered chatbots for preliminary threat assessments and psychological profiling of callers to better understand motivations and threat levels.
• Proposed Strategies for Deterrence and Awareness
  • To deter offenders, experts suggested publicly sharing photos of offenders on social media and displaying them at airports as a warning.
  • Additionally, the expert recommended establishing a global hoax call database and providing rewards for informers to encourage reporting of hoax threats.

Advisory to curb hoax bomb threats on social media

• About the news
  • MeitY has advised all social media platforms to follow the rules under the Information Technology (IT) Rules and Bharatiya Nyay Sanhita (BNS).
  • They are asked to make a serious effort to quickly remove any bomb threat posts. If they don’t comply, they could be held legally responsible.
• Legal Framework Under IT Act, 2000 and IT Rules, 2021
  • The advisory underscores the Ministry’s reliance on existing legal provisions to compel platforms to act against misinformation that threatens public order.
  • The Information Technology Act, 2000, along with the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, require intermediaries to promptly remove harmful misinformation.
    • Previously, the Ministry applied similar provisions to tackle the spread of deepfake videos, citing Rule 3(1)(b) of the IT Rules.
    • Rule 3(1)(b)(v) prohibits misinformation and patently false information.
• Potential Consequences for Non-Compliance
  • The advisory warned that non-compliant platforms risk losing intermediary liability protections, exposing them to potential legal action as publishers of harmful posts.
  • The Ministry noted that legal actions could be pursued under both the IT Act and the Bharatiya Nyaya Sanhita, 2023, if platforms fail to exercise due diligence.

Why in News?

In a recent address, ISRO Chairman S. Somanath outlined India’s goals to increase its share in the global space economy, enhance indigenous technological capabilities, and advance a series of high-impact space missions.

The vision highlights India's roadmap for space exploration and collaboration, aiming to boost India's position in the space industry significantly.

What’s in Today’s Article?

• India’s Space Economy
• Scientific Contributions and Legacy of the Indian Space Research Organisation (ISRO)
• Key Upcoming Missions of the ISRO
• Way Ahead for India’s Space Vision
• Conclusion

India’s Space Economy:

• Overview:
  • India currently contributes about 2% to the global space economy, with a goal to increase this share to at least 10% over the next decade.
  • However, achieving this milestone requires concerted efforts from both ISRO and other stakeholders, including private enterprises and start-ups, within India’s evolving space ecosystem.
• Participation of the private sector:
  • India’s space sector has seen a surge of activity with recent policy reforms and the opening up of the industry to private enterprises.
  • The growing enthusiasm among young entrepreneurs and companies, both large and small, has led to a collaborative environment where private players are taking on roles previously managed solely by ISRO.

Scientific Contributions and Legacy of ISRO:

• Chandrayaan:
  • India’s lunar missions, particularly Chandrayaan-1 and Chandrayaan-3, have yielded groundbreaking scientific discoveries.
  • Chandrayaan-1 confirmed the presence of water on the Moon, while Chandrayaan-3 has advanced scientific understanding through soft-landing technologies and data collection.
• Astrosat and other space observatories:
  • India’s first dedicated multi-wavelength space observatory, Astrosat, has facilitated extensive astronomical research, resulting in over 400 scientific papers and more than 30 PhDs.
  • The success of this mission has laid a strong foundation for future contributions to space science, including the recently launched Aditya-L1 and XPoSat missions. 

Key Upcoming Missions of the ISRO:

• Gaganyaan mission: India’s first manned space mission, Gaganyaan, is scheduled for 2026, marking a significant milestone in India’s human spaceflight program.
• Chandrayaan-4 Sample Return mission: Planned for 2028, Chandrayaan-4 will focus on returning lunar samples, a step forward in understanding the Moon’s geology and resources.
• LUPEX/Chandrayaan-5 mission:
  • A collaborative project with Japan’s JAXA, Chandrayaan-5 (formerly Lunar Polar Exploration/ LUPEX) will involve a heavier mission with a 350-kg rover provided by Japan, and the lander by India.
  • Expected after 2028, this mission aims to advance lunar science with the eventual goal of a human moon mission by 2040.
• NASA-ISRO Synthetic Aperture Radar (NISAR) mission:
  • The India-US joint NISAR mission, which has faced delays, is scheduled for launch in 2025.
  • This satellite mission aims to monitor natural resources and hazards using radar imaging.

Way Ahead for India’s Space Vision:

• Reducing dependence on imports:
  • Over the past decade, India has significantly reduced its dependence on imported space technologies.
  • However, many critical components still come from abroad, underscoring the need to further develop domestic manufacturing capabilities for advanced research and technologies.
• Expanding R&D and manufacturing capabilities:
  • ISRO is focused on promoting the indigenisation of research, development, and manufacturing, ensuring that critical items for the space sector can be built within the country.
  • This shift is crucial to meeting the demands of upcoming missions and achieving self-sufficiency in space technology.

Conclusion:

• India’s evolving space program under ISRO’s leadership is shaping up to be a significant force in global space exploration.
• With a focus on indigenous technology, private sector engagement, and ambitious missions, India is well on its way to realising its vision of
  • Contributing 10% to the global space economy and
  • Establishing a robust foundation for long-term space exploration and scientific advancement.

Why in the News?

The Central Government will implement the G20 Pandemic Fund, which is aimed at enhancing the country’s “animal health security”.

What’s in Today’s Article?

• G20 Pandemic Fund (Objectives, Structure, Funding)
• About Zoonotic Diseases (Meaning, Types, Transmission Methods)
• News Summary (Global Health Security Index)

What is G20 Pandemic Fund?

• The G20 Pandemic Fund is a financial initiative established by G20 countries to enhance global preparedness and response to health emergencies, particularly pandemics and zoonotic diseases (diseases transmitted from animals to humans).
• Key Objectives:
  • Strengthen Global Health Security: The fund aims to bolster healthcare systems worldwide to prevent, detect, and respond swiftly to pandemics.
  • Address Zoonotic Risks: Focuses on zoonotic diseases, which pose significant threats to human health, by investing in animal health and surveillance.
  • Support Low and Middle-Income Countries: Provides essential resources and support to vulnerable regions with weaker health infrastructure.
• Structure & Funding:
  • Managed by Multiple Agencies: The World Bank oversees the fund, while it collaborates with organizations like the WHO, FAO, and regional development banks.
  • Targeted Financial Assistance: Initially launched with over $1.4 billion, the fund mobilizes grants and low-interest loans for eligible countries.

What are Zoonotic Diseases?

• Zoonotic diseases are infections that are transmitted between animals and humans.
• These diseases can result from various pathogens, including viruses, bacteria, parasites, and fungi.

Common Zoonotic Diseases:

• COVID-19: Caused by the SARS-CoV-2 virus, believed to have originated from animals, likely bats, before spreading to humans.
• Rabies: A viral infection primarily spread through bites or scratches from infected animals, especially dogs and bats.
• Avian Influenza (Bird Flu): Transmitted from infected birds to humans through direct contact or contaminated environments.
• Ebola: Originates from fruit bats and is spread through direct contact with bodily fluids of infected animals or humans.
• Salmonellosis: Caused by Salmonella bacteria, commonly transmitted through contaminated food, particularly poultry and eggs.

Transmission Methods:

• Direct Contact: Handling or being bitten by infected animals.
• Indirect Contact: Contact with contaminated surfaces or environments.
• Vector-Borne: Through vectors like ticks or mosquitoes.
• Foodborne: Consuming contaminated meat, eggs, or dairy.
• Airborne: Inhaling pathogens from animal excreta or dander.

News Summary:

• The Union government has launched a $25-million G20 Pandemic Fund to strengthen animal health security, aiming to curb zoonotic diseases—diseases transmitted from animals to humans, like COVID-19.
• This initiative is a collaborative effort with organizations including the Asian Development Bank (ADB), World Bank, and Food and Agriculture Organization (FAO), and is expected to be fully utilized by August 2026.
• The fund will enhance disease surveillance, build laboratory infrastructure, and promote cross-border cooperation.
• India, with high environmental risks and a low score (42.8) on the Global Health Security Index, is particularly vulnerable to zoonotic diseases, which are further intensified by climate change.
• Additionally, the project will focus on human capacity building, improving data management systems, and enhancing disaster management frameworks for the livestock sector.
• This comprehensive approach aims to create an integrated system to manage zoonotic disease risks effectively.

About Global Health Security Index:

• The Global Health Security Index (GHSI) is a comprehensive assessment and benchmarking tool.
• It evaluates the preparedness and capabilities of countries to prevent, detect, and respond to global health threats, such as pandemics and infectious disease outbreaks.
• It was launched in 2019 by the Nuclear Threat Initiative (NTI), the Johns Hopkins Centre for Health Security, and The Economist Intelligence Unit.
• The GHSI provides a score ranging from 0 to 100 for each country, with higher scores indicating better preparedness.
• The index assesses countries based on six key categories:
  • Prevention: Measures to prevent the emergence of pathogens.
  • Detection and Reporting: Surveillance and rapid reporting capabilities.
  • Rapid Response: The ability to respond quickly to an epidemic.
  • Health System: The capacity of healthcare systems to treat and protect populations.
  • Compliance with International Norms: Adherence to global health regulations.
  • Risk Environment: Broader socio-political and environmental factors affecting health security.

Why in News?

On his three-day visit to India, German Chancellor Olaf Scholz met the Indian PM, focusing on strategic partnerships, visas for skilled workers, and mutual cooperation.

Modi and Scholz also co-chaired the seventh round of India-Germany Intergovernmental Consultations (7th IGC).

What’s in Today’s Article?

• India - Germany Relations
• Highlights of the German Chancellor’s India Visit
• Conclusion

India - Germany Relations:

• Overview:
  • India and Germany have a 'Strategic Partnership' since 2000.
  • Recently, the two countries have intensified their cooperation in areas such as AI, cybersecurity, circular economy, smart farming, sustainable development, etc.
  • This underscores the growing importance of India-Germany relations in the current global context.
• Bilateral trade relations:
  • Germany is India’s largest trading partner within the European Union (EU), with bilateral trade reaching US$26 billion in 2022-23.
  • Indian exports to Germany rose to US$10.1 billion, while German imports to India stood at around US$14.9 billion.
  • While Germany and India lack a direct free trade agreement (FTA), Germany is an advocate for the ongoing EU-India FTA negotiations, which aim to enhance economic ties further.
• Intergovernmental Consultations (IGC):
  • The launch of IGC in 2011 at the level of Heads of Government allows for a comprehensive review of cooperation and identification of new areas of engagement.
  • India is among a select group of countries with which Germany has such a dialogue mechanism.
• Focus on Indo-Pacific and strategic alliances: With rising geopolitical concerns in the Indo-Pacific, German and European policymakers view India as a vital partner for economic and strategic stability.

Highlights of the German Chancellor’s India Visit:

• Bilateral talks on global issues:
  • Russia-Ukraine conflict:
    • Modi underscored India’s position on peaceful conflict resolution and commitment to contribute towards peace.
    • Scholz urged India to support a political solution to the Ukraine crisis, lauding India’s stable role in South Asia.
  • West Asia: Both leaders stressed the importance of avoiding further escalation, advocating for ceasefire and a two-state solution for resolving the Israeli–Palestinian conflict.
  • Indo-Pacific security and China’s influence:
    • Modi and Scholz emphasised the importance of a rules-based order in the Indo-Pacific and the need for maritime freedom.
    • Both nations committed to enhancing defence ties, agreeing to jointly tackle regional security challenges.
  • Reform of global institutions: Both leaders underscored the need for reform in multilateral organisations like the UN Security Council to better address contemporary challenges.
  • Expanded partnership vision: Scholz and Modi highlighted a shift from a “whole of government” to a “whole of nation” approach, signifying a broader, deeper collaboration.
• Key announcements and agreements:
  • Visa expansion for skilled Indians: Germany to increase annual visas for skilled Indians from 20,000 to 90,000, recognising India's skilled workforce as a crucial asset for Germany’s economic growth.
  • Focus on India Strategy: Germany’s holistic approach to its partnership with India, marked by the ‘Focus on India’ document, emphasises Germany’s trust and investment in India’s workforce and strategic cooperation.
  • Reducing dependency on China: In light of global geopolitical shifts, Chancellor Scholz emphasised avoiding "one-sided dependencies," particularly in strategic areas such as critical raw materials.
    • Both leaders aligned on positioning India as a key partner to diversify supply chains.
  • India as a hub for global manufacturing: PM Modi promoted India as an emerging hub for trade and manufacturing, encouraging German businesses to “Make in India, Make for the World.”
• Key areas of collaboration:
  • Enhanced defence and security cooperation:
    • Modi and Scholz signed key agreements, including one on the exchange and protection of classified information, signalling a deepening mutual trust in defence and security.
    • The Mutual Legal Assistance Treaty (MLAT) in criminal matters aims to bolster cooperation on legal issues, enhancing India and Germany's ability to jointly address security challenges.
  • Clean energy and sustainable development:
    • Green hydrogen roadmap: It marks a significant step in renewable energy collaboration, contributing to both nations' climate goals.
    • Joint Research and Development (R&D): A Joint Declaration of Intent supports cooperation in R&D on advanced materials, underscoring a shared commitment to technological innovation.

Conclusion:

• The Modi-Scholz meeting and the ensuing agreements reflect a new era in India-Germany relations.
• From enhanced trade and defence cooperation to shared goals in clean energy, both countries have set a strong foundation for mutual growth and global influence, reinforcing their status as pivotal players on the world stage.

Why in News?

The Indian stock market has seen a consistent decline over the past month, with key indices like the Sensex and Nifty falling nearly 1% on October 25, marking the fifth consecutive day of losses.

This drop represents a 7.5% decline for the Sensex in the last month - the largest among global markets during this period.

What’s in Today’s Article?

• Introduction to the Indian Stock Market
• Market Overview
• Reasons Behind the Decline
• Global Comparison
• Sectoral Impact on Small and Mid-Cap Stocks
• Outlook and Future Expectations

Introduction to the Indian Stock Market:

• Understanding shares:
  • Shares represent a unit of ownership in a company, not a physical asset.
  • Companies issue shares to raise funds for various needs.
  • Buying or selling shares requires going through a broker or stock exchange, and share prices fluctuate based on demand and supply dynamics.
• Types of investments: Investors in the stock market can choose between:
  • Long-term (Equity investments): Designed for extended growth, these are popular for their potential to yield high returns over time.
  • Short-term (Debt investments): Typically, lower-risk, these are intended for quicker returns.
• How does the share market work in India?
  • The Indian market is divided into two primary stock exchanges:
    • National Stock Exchange (NSE): A leading stock exchange in India.
    • Bombay Stock Exchange (BSE): One of the oldest and most established exchanges in India.
  • The Securities and Exchange Board of India (SEBI) regulates these exchanges to ensure fair practices and investor protection.
  • Here, securities like equities, bonds, ETFs, and derivatives trade at prices driven by demand and supply.
• Purpose of the stock market:
  • The stock market serves as a regulated, centralised platform where companies and investors meet.
  • Its primary goal is to facilitate business expansion by allowing companies to raise capital through the sale of shares, providing investors opportunities for profit and growth.

Market Overview:

• Sensex performance: The BSE’s 30-share Sensex dropped by 662.87 points (0.83%) on Friday to close at 79,402.29.
• Nifty performance: The Nifty 50 declined by 218.6 points (0.9%), ending at 24,180.8.
• One-month trend: From September 26 to October 25, Sensex fell by 7.5%, while other global indices experienced smaller declines or even gains.

Reasons Behind the Decline:

• Foreign Portfolio Investors (FPIs) sell-off: FPIs have withdrawn record funds totalling Rs 85,790 crore in October.
• Geopolitical tensions in West Asia: Uncertainties due to the West Asian conflict have weakened investor sentiment.
• Corporate Q2 results: Lower-than-expected corporate earnings have impacted confidence. Net profit growth of 502 companies slowed to 4.1% in Q2.
• Shift to primary markets: Money has flowed from the secondary market to initial public offerings (IPOs), creating a liquidity shortage.

Global Comparison:

• India has been the hardest hit among major indices, experiencing a 7.5% fall.
• Meanwhile, other indices like Shanghai (9.99%) and Hang Seng (3.85%) have surged.

Sectoral Impact on Small and Mid-Cap Stocks:

• High valuations and liquidity shortage: Small- and mid-cap stocks have dropped over 8% due to high valuations and limited liquidity, as retail investors divert funds to IPOs.
• Individual stock performance: Many small-cap stocks have fallen 20-30%, primarily due to valuation concerns.

Outlook and Future Expectations:

• Market analysts are cautiously optimistic about a recovery within the next two months.
• Despite the short-term pressures, the medium to long-term growth prospects of the Indian economy remains strong.
• Valuations suggest a moderate overvaluation but not at a level that would significantly deter long-term investment.

Context

• Recently, the Supreme Court reprimanded both the central and state governments for failing to take substantial action against stubble burning practice, highlighting the citizens’ right to a pollution-free environment under Article 21 of the Constitution.
• Although efforts to reduce farm-fire incidents have been made, punitive measures have been insufficient in addressing the root causes that drive farmers to burn crop residue.
• Therefore, it is important to explore the environmental impact, economic barriers, and potential solutions, and a comprehensive approach to manage stubble burning.

The Historical and Legal Origins of Stubble Burning

• Legislative Efforts Aimed at Conservation of Water
  • The issue of stubble burning in India, especially in the northern states of Punjab and Haryana, has roots that trace back to legislative efforts aimed at water conservation in agriculture.
  • These states are major rice-producing regions, and paddy cultivation there is both water-intensive and energy-demanding.
  • To address escalating groundwater depletion, the governments of Punjab and Haryana implemented the Punjab Preservation of Sub-soil Water Act and the Haryana Preservation of Sub-soil Water Act in 2009.
  • This marked a significant policy intervention aimed at preserving the rapidly depleting groundwater levels.
• Unintended Consequences of Legislative Action: Disruption in Traditional Agricultural Cycle
  • Under these laws, farmers were prohibited from sowing paddy before mid-June, a measure designed to align the sowing season more closely with the arrival of the monsoon rains.
  • Previously, farmers would often sow paddy as early as April or May, relying heavily on groundwater to irrigate their fields in the absence of rain.
  • By delaying the sowing period, these acts sought to conserve water by reducing dependence on groundwater and encouraging reliance on natural rainfall during the monsoon season.
  • Although successful in conserving groundwater to some extent, this policy inadvertently disrupted the traditional agricultural cycle, creating a domino effect that ultimately contributed to the practice of stubble burning.
• The Move Away from Manual Harvesting
  • Traditionally, farmers in Punjab and Haryana harvested paddy manually, an eco-friendly method that left little to no stubble in the fields.
  • Manual harvesting is labour-intensive and requires many seasonal farmworkers, who would travel from one field to another during the harvest season.
  • However, the shortened post-harvest window imposed by the Sub-soil Water Conservation Acts led to increased demand for labour within a limited timeframe, driving up labour costs and creating a shortage of available workers.
  • Additionally, as labour migration patterns were disrupted, farmers found it challenging to secure affordable labour for manual harvesting.
• Economic Constraints and the Turn to Stubble Burning
  • With limited time and resources, stubble burning has emerged as a swift, cost-effective solution for farmers to clear their fields of residue.
  • Mechanised harvesting, while efficient, makes the residue management process more complex and financially challenging, costing around Rs 4,000 per acre for alternative, non-burning stubble management methods.
  • For small and marginal farmers, these additional expenses are often unfeasible, especially considering the narrow profit margins in agriculture.
  • Consequently, stubble burning has become the practical choice for many farmers, despite its detrimental impact on air quality, soil health, and biodiversity.

Proposed Solutions to Address the Issue of Stubble Burning

• Financial Support for Farmers
  • One primary reason farmers resort to stubble burning is the high cost of alternative stubble management methods.
  • Mechanical solutions to manage stubble, such as incorporating residue back into the soil or using specialised machines like the Happy Seeder, require an investment of approximately Rs 4,000 per acre—an expense that many small and marginal farmers cannot afford.
  • Providing targeted financial support to cover these additional costs would help reduce the economic burden on farmers, making sustainable methods more accessible.
  • One way to fund these initiatives is through the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
  • By subsidising the costs associated with sustainable residue management, governments can make these methods viable for farmers and incentivize a shift away from burning.
• Crop Diversification and Revisiting Minimum Support Prices (MSP)
  • Another key solution lies in encouraging crop diversification, shifting farmers away from water-intensive crops like paddy and promoting the cultivation of alternatives like coarse grains, pulses, and oilseeds.
  • This strategy could reduce the amount of paddy stubble produced in the first place, alleviating the need for widespread stubble management.
  • In recent decades, government policies have incentivised paddy cultivation to meet the nation’s food security demands.
  • These policies have created a cycle where farmers in Punjab and Haryana grow primarily paddy and wheat due to the assured returns through MSP (Minimum Support Prices) for these crops.
• Providing Technical Support and Training Programs
  • In addition to MSP policies, providing technical support and training programs for farmers on diversified cropping systems would help bridge knowledge gaps and enable farmers to transition smoothly.
  • Agricultural extension services could play a crucial role in this shift, offering guidance on how to cultivate alternative crops and manage land sustainably.
  • Over time, a diversified crop landscape would reduce stubble production, alleviate water scarcity, and contribute to India’s food security with a broader range of crops.

Manual Harvesting and Additional Considerations to Address the Stubble Burning

• Incentivising Manual Harvesting
  • Manual harvesting is another environmentally friendly solution that reduces stubble burning by leaving minimal residue in fields.
  • While traditional manual harvesting methods have largely been replaced by mechanical alternatives due to labour shortages and high costs, reintroducing these methods, particularly in high-stubble areas, could make a meaningful difference.
  • Manual harvesting not only minimises stubble production but also preserves the soil structure and nutrients that would otherwise be destroyed by burning.
  • Incentivising manual harvesting, however, would require an initial investment to offset labour costs and address the challenges of labour availability.
  • A subsidy of Rs 4,000 per acre could cover the expenses associated with manual harvesting, making it feasible for farmers to employ seasonal labourers for the process.
• Additional Considerations for Implementation
  • To make these solutions effective, collaboration between state governments, the central government, and local authorities is essential.
  • Coordination could ensure that financial support reaches farmers promptly, that MSPs for alternative crops are enforced reliably, and that resources are allocated efficiently to regions facing the greatest challenges.
  • Developing a monitoring and evaluation system to track the effectiveness of these measures could help policymakers refine their approaches over time.

The Broader Impact of Supporting Sustainable Farming Practices

• Encouraging manual harvesting not only aids in reducing air pollution but also has broader environmental and economic benefits.
• It aligns with India’s commitments to address climate change and reduce carbon emissions.
• Each year, global forums pledge to spend billions on climate change mitigation; directing a fraction of such funds towards incentivising sustainable farming practices could create meaningful impact on both local and global scales.
• Moreover, supporting farmers in this transition can address social issues such as rural unemployment and ensure food security through sustainable, diversified crop production.

Conclusion

• The issue of stubble burning in India highlights the need for a comprehensive, long-term strategy that addresses not just environmental concerns but also economic realities faced by farmers.
• Instead of relying solely on punitive measures, policymakers must consider solutions that balance environmental sustainability with economic viability, such as supporting manual harvesting, promoting crop diversification, and providing financial assistance to farmers.
• Such measures could create lasting improvements in air quality, reduce greenhouse gas emissions, and create a resilient agricultural economy, benefiting both the people of Delhi-NCR and the broader Indian ecosystem.

Why in news?

The government has increased the loan limit under the Pradhan Mantri Mudra Yojana (PMMY) from Rs 10 lakh to Rs 20 lakh, introducing a new ‘Tarun Plus’ category aimed at supporting emerging entrepreneurs.

This enhancement will aid entrepreneurs in growth and expansion, furthering the Mudra Scheme’s mission to "fund the unfunded" and strengthen India's entrepreneurial ecosystem.

Finance Minister Nirmala Sitharaman initially announced the increase in her July 2024 Union Budget, specifying that it applies to those who have availed and successfully repaid previous loans in the 'Tarun' category.

What’s in today’s article?

• Pradhan Mantri Mudra Yojana (PMMY)

Pradhan Mantri Mudra Yojana (PMMY)

• About
  • PMMY was launched in April 2015 for providing loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises.
  • These loans are classified as MUDRA loans under PMMY. These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs. 
• Institution created - MUDRA
  • MUDRA, which stands for Micro Units Development & Refinance Agency Ltd., is the financial institution set up by the Government to provide these loans.
  • It provides funding to the non-corporate small business sector through various last-mile financial institutions like Banks, Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs).
  • Eligible person can avail benefits under PMMY by applying for loan from any of the above-mentioned institutions.
    • MUDRA does not lend directly to micro-entrepreneurs/individuals.
• Categories of Loans under PMMY:
  • Under the aegis of PMMY, MUDRA has created three products namely 'Shishu', 'Kishore' and 'Tarun' to signify the stage of growth/development and funding needs of the beneficiary micro unit/entrepreneur.
    • Shishu – Covering loan up to Rs. 50,000/-
    • Kishore – Covering loans above Rs 50,000/- and up to Rs. 5 lakh
    • Tarun – Covering loans above Rs. 5 lakh and up to Rs. 10 lakh
• Eligibility for PMMY
• Any Indian Citizen who has a business plan for a non-farm income generating activity such as manufacturing, processing, trading or service sector.
• The applicant should not be a defaulter to any bank or financial institution and should have a satisfactory credit track record.
• The borrower can approach any of the lending institutions mentioned above or can apply online through this portal udyamimitra.in
• Interest on Mudra loans
  • Interest on Mudra loans by PSBs and private banks ranges from 9.15 per cent -12.80 per cent and 6.96 per cent –28 per cent, respectively based on the cost of funds, risk profile of the borrower, tenure of loans, etc.  
• Benefits of PMMY:
  • No Collateral Security: The borrowers do not need to furnish any form of collateral to procure these loans. Hence, one doesn't need to risk one’s personal or business property in order to secure some funds.
  • Easily Available: This loan is easily available to entrepreneurs trying to set up micro-sized enterprises anywhere in India and in almost every industry domain.
  • Defaulting Procedure: In case of defaulting the loan legally, due to unforeseen circumstances or for losses due to natural causes, the government bears the responsibility to repay the loan.
  • Quick Capital: The loans under the MUDRA scheme are available to micro-sized enterprises in a quick, effortless manner. Loans of up to 10 lakh can be easily availed in this process.
  • Empowering Women: Women entrepreneurs have added special concessional benefits to the loans offered under the MUDRA scheme.
  • Rural Empowerment: The MUDRA Yojana loans are equally available to small-scale businesses in both rural and urban areas. Besides, rural locales benefit more from such loans due to greater accessibility.
  • Flexible Repayments: Although one can choose to repay the loan in a shorter period, the time frame of loan repayment can also be extended for a period of up to 7 years.
  • Multiple Credit Possibilities: The MUDRA scheme offers multiple opportunities to expand one’s micro-unit enterprise with facilities like cash credit, equipment financing, etc.
  • MUDRA Card: You can also apply for a MUDRA card that provides instant and seamless access to funds and overdraft facilities.
• Achievement
  • According to government data, 66.8 million loans were sanctioned under PMMY in 2023-24, amounting to Rs 5.4 trillion.
  • As of June 2024, more than 487.8 million loans totaling Rs 29.79 trillion have been sanctioned since the inception of the scheme.
  • 
  • Non-performing assets (NPA) of public sector banks in Mudra loans have decreased to 3.4 per cent in FY24, down from a high of 4.77 per cent in 2020-21, and 4.89 per cent in 2019-20.
    • In contrast, the gross NPA of scheduled commercial banks in the country is 2.8 per cent as of March 2024.

Why in news?

The Ministry of Health and Family Welfare has released draft guidelines to implement the Supreme Court's 2018 and 2023 orders on the right to die with dignity.  These guidelines provide a framework for state governments and hospitals to withdraw life support for terminally ill patients.

Though India lacks specific legislation on life-sustaining treatment withdrawal, the guidelines affirm its legality within this regulated structure.

What’s in today’s article?

• Understanding Withholding or Withdrawing Life-Sustaining Treatment
• Euthanasia or the so called ‘mercy killing’ of a patient
• Living Will
• Medical Procedure for Withholding or Withdrawing Life-Sustaining Treatment

Understanding Withholding or Withdrawing Life-Sustaining Treatment

• About
  • Withholding or withdrawing life-sustaining treatment involves ending medical interventions, such as ventilators and feeding tubes, when they no longer improve the patient’s condition or merely extend suffering.
  • These treatments temporarily replace essential bodily functions but are discontinued to allow natural progression of the illness, providing comfort care and symptomatic relief instead.
• Right to Refuse Medical Treatment
  • 
  • The right to refuse medical treatment has long been upheld in common law and is recognized as a fundamental right under Article 21 (Right to life and personal liberty) of the Indian Constitution following the 2018 Supreme Court decision in Common Cause vs Union of India.
  • This right allows patients to refuse life-sustaining treatments, even if refusal may lead to death.
• Process for Withholding or Withdrawing Life Support
  • Through Patient Consent: If a patient has decision-making capacity, they can refuse treatment.
  • Through Advance Directives or ‘Living Wills’: A patient may outline their wishes in a ‘living will’ to guide future medical care if they lose the ability to decide.
  • For Patients Without Capacity or Living Will: In cases where a patient cannot make decisions and lacks a living will, the treating physician can recommend withholding or withdrawing treatment if there is no reasonable chance of recovery, and further intervention would only prolong dying.

Euthanasia or the so called ‘mercy killing’ of a patient

• Understanding Euthanasia and Misconceptions Around “Passive Euthanasia” in India
  • Euthanasia involves the intentional ending of a terminally ill patient’s life by a doctor to relieve suffering.
  • In India, “passive euthanasia” often refers to withholding or withdrawing life-sustaining treatment, but this term has led to misconceptions and public apprehension regarding the right to die with dignity.
  • A 2018 glossary by the Indian Council of Medical Research highlighted that this term is widely misunderstood and lacks social acceptability.
• Withholding or Withdrawal of Life Support and Do-Not-Attempt-Resuscitation (DNAR) Orders
  • The withdrawal of life-sustaining treatments can include “do-not-attempt-resuscitation” (DNAR) orders, where a physician decides, in consultation with the patient or family, not to attempt resuscitation.
  • Importantly, DNAR does not mean stopping other medical treatment; it only limits resuscitation efforts.
• Does Withholding or Withdrawing Treatment Mean Giving Up on the Patient?
  • Choosing not to continue life-sustaining treatment is not about abandoning the patient but about recognizing when interventions are futile and only prolong suffering.
  • In such cases, the focus shifts to palliative care, ensuring the patient’s comfort.
  • In contrast, discharging patients against medical advice often results in inadequate care, increasing suffering for patients and their families.

Living Will

• To support the right to die with dignity, the Supreme Court established guidelines in 2018 for creating living wills, later simplified in 2023.
• A living will allows individuals aged 18 or older to outline their medical care preferences should they lose decision-making capacity.
• The document must name at least two trusted surrogate decision-makers.
• To be legally binding, it must be signed before an executor, two witnesses, and attested by a notary or gazetted officer.

Medical Procedure for Withholding or Withdrawing Life-Sustaining Treatment

• Guidelines by SC
  • The Supreme Court's guidelines outlined a structured procedure for withholding or withdrawing life-sustaining treatment.
  • It emphasized the rights and duties of both doctors and patients and ensuring independent expert assessment and consent from family or surrogate decision-makers.
• Primary Medical Board Assessment
  • A Primary Medical Board, consisting of the treating doctor and two subject-matter experts with a minimum of five years’ experience, is constituted by the hospital.
  • This board assesses the patient’s condition and determine the appropriateness of stopping life-sustaining treatment.
• Secondary Medical Board Review
  • For additional oversight, a Secondary Medical Board is set up to review the Primary Board’s decision.
  • It includes a registered medical practitioner appointed by the district Chief Medical Officer and two experienced subject-matter experts, all different from those on the Primary Board.
• Consent from Family or Surrogate Decision-Makers
  • Consent from the patient’s nominated representatives in an advance directive or, where unavailable, surrogate decision-makers is required before withholding or withdrawing treatment.
• Judicial Notification
  • The hospital must notify the local judicial magistrate about the decision to withhold or withdraw life-sustaining treatment.
• Shared Decision-Making and Ethical Responsibility of Doctors
  • The procedure promotes “shared decision-making,” involving the medical team and the patient’s family or surrogates to jointly agree on treatment decisions.
  • This protects doctors legally, respects patient autonomy, includes family wishes, and maintains ethical standards without placing sole responsibility on the physician.

Context

• India’s agricultural sector is at a crucial crossroads, with challenges ranging from increasing crop productivity to ensuring long-term food security amidst climate change.
• Some renowned agronomists argue that the country needs to invest more in agricultural research and development (R&D) rather than spending on food subsidies.
• Their proposition to redirect funds from food subsidies to R&D, while rooted in logical trade-offs, requires a deeper examination, particularly regarding the value and purpose of food subsidies.

The Debate on Food Subsidies

• The debate over food subsidies in India is complex and multifaceted, touching upon issues of food security, fiscal responsibility, and social welfare.
• Food subsidies, provided through the Public Distribution System (PDS) under the National Food Security Act (NFSA), are crucial for millions of low-income households, offering affordable access to staple grains and ensuring a basic level of food security.
• While proponents argue that these subsidies are essential for alleviating hunger and supporting vulnerable populations, critics contend that reallocating these funds toward agricultural R&D would be more beneficial in the long term.
• This debate raises fundamental questions about the role of food subsidies in India’s social policy and the potential trade-offs involved in redirecting funds to other sectors.

The Case for Food Subsidies and Misconception About the Fiscal Impact of NFSA

• A Critical Role in Ensuring Food Security
  • Food subsidies play a critical role in ensuring food security for India’s population, particularly for those below the poverty line.
  • By providing subsidised grains like rice and wheat, the PDS helps millions of people access a basic level of nutrition.
  • The importance of this system became even more evident during the COVID-19 pandemic, when disruptions in income and employment left many families struggling to afford food.
  • Food subsidies acted as a safety net, supporting households through the crisis and ensuring that they could meet their minimum dietary needs.
• An Essential Financial Amnesty
  • For families earning less than Rs. 20,000 a month, the PDS offers an essential financial amnesty.
  • The modest income transfers these families receive through subsidised grain allows them to allocate a portion of their limited resources to other essential foods, such as pulses, milk, and vegetables.
  • Thus, food subsidies not only help maintain caloric intake but also indirectly support dietary diversity and nutrition, enabling families to achieve a more balanced diet.
  • The argument that food subsidies could be curtailed overlooks their broader value in supporting the health, education, and productivity of India’s most vulnerable citizens.
• An Income Transfer and Social Investment
  • Food subsidies also function as a modest income transfer for the bottom half of the income distribution, allowing poor households to allocate more of their budget to other necessities.
  • By receiving grains at subsidised rates, families save on food costs and can spend on other essentials like education, healthcare, and diverse food items, which improves overall well-being and economic stability.
  • For these households, the PDS acts as an economic cushion, helping them manage rising costs of living and reducing the need for short-term coping strategies like taking on debt.
• Misconceptions About the Fiscal Impact of NFSA
  • Critics have expressed concerns that the NFSA would dramatically increase the government’s fiscal burden by necessitating higher grain procurement.
  • However, evidence suggests that the NFSA’s impact on government expenditure has been less severe than anticipated.
  • While the NFSA expanded the number of beneficiaries, it simultaneously reduced the per-capita grain allocation—from 7.9 kg per person per month to 5 kg.
  • This change has helped offset the increase in beneficiaries, thereby limiting the overall fiscal impact of the NFSA on the food subsidy bill.
  • This reduction in per-beneficiary allocation demonstrates that the NFSA has not led to substantial increases in grain procurement or inflated the subsidy bill to the extent predicted by critics.

The Way Forward

• Increase in R&D Investment Without Compromising Food Security
  • There is no doubt that agricultural R&D is critical for the future of India’s farm sector.
  • However, addressing the need for increased R&D funding does not necessarily require cutting food subsidies.
  • Rather, the government could explore alternative sources of funding, such as revising other subsidy programs, particularly production-linked incentives for certain industries, or increasing taxes on luxury goods.
  • The emphasis should be on making agricultural investments without sacrificing the welfare of the most vulnerable sections of society.
• Distinguishing Food Subsidies from Input Subsidies
  • A key point of contention in critics’ argument is the conflation of food subsidies with input subsidies such as those for fertilizers and electricity.
  • While input subsidies are indeed wasteful and contribute to environmental degradation, food subsidies primarily benefit consumers, not farmers.
  • Studies show that the farmer’s share of the food subsidy bill is much smaller than that of input subsidies.
  • Therefore, reducing food subsidies would not directly improve agricultural practices or R&D funding, as critics suggest.
• Optimising the Efficiency of Existing Food Subsidies
  • There is room for optimising the efficiency of existing food subsidies without reducing the scope of the PDS.
  • For example, modernising the PDS through technology, reducing leakages, and improving targeting could help streamline the system and reduce costs without compromising its coverage.
  • By implementing these measures, the government could improve the effectiveness of food subsidies and free up resources for other priorities, such as agricultural R&D.

Conclusion

• The debate over food subsidies in India reflects a broader tension between immediate social welfare and long-term economic development.
• While critics argue for redirecting funds from food subsidies to agricultural R&D, this approach overlooks the critical role that food subsidies play in supporting vulnerable populations.
• Rather than reducing food subsidies, policymakers should seek alternative funding sources for agricultural R&D and optimize existing subsidy programs to ensure efficiency.

Why in news?

Severe Cyclonic Storm Dana made landfall on the Odisha coast on the night of October 24. The storm made landfall at a speed of 100 to 110 kmph gusting at 120 kmph.

What’s in today’s article?

• Tropical Cyclone
• Naming of cyclone
• Landfall of cyclone

Tropical Cyclone

• About
  • Cyclones that develop in the regions between the Tropics of Capricorn and Cancer are called tropical cyclones. 
  • The World Meteorological Organisation uses the term 'Tropical Cyclone’ to cover weather systems in which winds exceed ‘Gale Force’ (minimum of 34 knots or 63 kph).
  • Tropical cyclones are the progeny of ocean and atmosphere, powered by the heat from the sea; and driven by easterly trades and temperate westerlies, high planetary winds and their own fierce energy.
• Formation of cyclones
  • 
  • Tropical Cyclone is a weather phenomenon, which is formed only over warm ocean waters near the equator.
• Characteristics of a Tropical Cyclone:
  • The centre of a cyclone is very calm and clear with very low air pressure. The average speed is 120 kmph.
  • They have closed isobars which leads to greater velocity.
    • Isobars are imaginary lines on a weather map that connect locations with equal atmospheric pressure.
  • They develop over oceans and sea only.
  • They move from east to west under the influence of trade winds.
  • They are seasonal in nature.
• Classification of cyclones
  • Cyclones are classified on the basis of wind speed by the Indian Meteorological Department (IMD):
    • Depression: Wind speeds of between 31–49 km/h
    • Deep Depression: Between 50-61 km/h
    • Cyclonic Storm: Between 62–88 km/h
    • Severe Cyclonic Storm: Between 89-117 Km/h
    • Very Severe Cyclonic Storm: Between 118-166 Km/h
    • Extremely Severe Cyclonic Storm: Between 167-221 Km/h
    • Super Cyclonic Storm: Above 222 Km/h
• Category of a tropical cyclone
  • The category of a tropical cyclone is determined by its sustained wind speed, as measured by the Saffir-Simpson Hurricane Wind Scale.
  • It is classified into five categories — Category 1 to Category 5.
  • While Category 1 tropical cyclones bring winds of 119 to 153 kmph, Category 5 tropical cyclones, which are the strongest, have winds of 252 kmph or higher.
    • Storms that reach Category 3 and higher are considered major tropical cyclones due to their potential to inflict significant damage.
• Tropical cyclones are known by different names in various regions
  • Hurricanes – In the in the West Indian islands in the Caribbean Sea and Atlantic Ocean.
  • Tornados - In the Guinea lands of West Africa and southern USA
  • Typhoons – In the Northwest Pacific Ocean, particularly affecting East and Southeast Asia (e.g., Japan, Philippines, China, Taiwan).
  • Cyclones – In the Southwest Indian Ocean (off the coast of Africa, Madagascar), the Southeast Indian Ocean, and the Southwest Pacific Ocean.
  • Willy-Willies – An informal term used for tropical cyclones in Australia.

Naming of Cyclones

• Cyclone Dana
  • The name Dana was suggested by Qatar to the World Meteorological Organisation/United Nations Economic and Social Commission for Asia and the Pacific (WMO/ESCAP).
• Process of naming
  • Worldwide, there are six regional specialised meteorological centres (RSMCs) and five regional Tropical Cyclone Warning Centres (TCWCs) mandated for issuing advisories and naming of tropical cyclones.

• The five regional Tropical Cyclone Warning Centres (TCWCs) are:
• ESCAP/WMO Typhoon Committee,
• WMO/ESCAP Panel on Tropical Cyclones
  • It is responsible for naming of cyclones in the Indian Ocean.

• RA(Regional Association) I Tropical Cyclone Committee,
• RA IV Hurricane Committee,
• RA V Tropical Cyclone Committee.

• IMD is one of the six RSMCs to provide tropical cyclone and storm surge advisories to under the WMO/Economic and Social Commission for Asia-Pacific (ESCAP).
  • WMO/ ESCAP is an inter-governmental regional body jointly established by the World Meteorological Organization (WMO) and the United Nations Economic and Social Commission for Asia-Pacific (ESCAP) in 1972.
  • Members – It has 13 countries as its members.
    • Bangladesh, India, Iran, Maldives, Myanmar, Oman, Pakistan, Qatar, Saudi Arabia, Sri Lanka, Thailand, United Arab Emirates and Yemen.
  • They contribute to a set of names which are assigned sequentially whenever a cyclonic storm develops.
    • The list of 169 cyclone names released by IMD in 2020 was provided by these countries — 13 suggestions from each of the 13 countries.
  • So, the tropical cyclones forming over different Ocean basins are named by the concerned RSMCs & TCWCs.

What is landfall of a cyclone?

• Landfall is the event of a tropical cyclone coming onto land after being over water.
• As per the IMD, a tropical cyclone is said to have made a landfall when the center of the storm – or its eye – moves over the coast.
  • The "eye" of a cyclone is a region of relatively calm weather found at the center of the storm.
  • Within the eye, winds are light and variable, often with clear or only partially cloudy skies.
  • The size of the eye can vary significantly, ranging from a few kilometers to over 50 kilometers (30 miles) in diameter in larger cyclones.
• During landfall, the outer bands of the storm may have already reached the coast, bringing strong winds, heavy rain, and storm surge.
• Landfall marks the moment when the cyclone officially reaches the land.
  • A landfall should not be confused with a ‘direct hit’, which refers to a situation where the core of high winds (or eyewall) comes onshore but the centre of the storm may stay remain offshore.

Why in news?

Indian and Chinese negotiators have reached an agreement on "patrolling arrangements" along the Line of Actual Control (LAC), leading to a disengagement and resolution of the tensions that emerged in 2020. The announcement was made by India, highlighting progress in the management of the border dispute.

The agreement was followed by a bilateral meeting between Indian Prime Minister Narendra Modi and Chinese President Xi Jinping during the BRICS leaders' summit in Kazan, Russia.

What’s in today’s article?

• Background: Road to agreement
• Patrolling Pact: A Key Element of the Agreement
• Key highlights of the agreement
• Diverging Interpretations

Background: Road to agreement

• PM Modi's Call for Improved Relations with China
  • In April 2024, PM Modi, in an interview, emphasized the significance of India's relationship with China.
  • He highlighted the need to urgently address the prolonged border situation to normalize bilateral interactions.
• Positive Response from China
  • In response, the Chinese government expressed a positive outlook.
  • A spokesperson from the Chinese Foreign Ministry acknowledged that India-China relations encompass more than just the border dispute.
• Indian Foreign Minister's Focus on Patrolling Rights (May 2024)
  • In May 2024, Indian EAM S. Jaishankar expressed optimism regarding the resolution of remaining border disputes with China, particularly in the Ladakh region.
  • He emphasized that the key issues still in contention were related to "patrolling rights" and "patrolling abilities" along the disputed areas.

Patrolling Pact: A Key Element of the Agreement

• Significance
  • The patrolling agreement is a crucial aspect of the border management deal between India and China.
  • It is central to maintaining stability and order along the disputed areas of the Line of Actual Control (LAC).
• Patrolling Dynamics on the India-China Border
  • Patrolling is vital in the India-China border management system due to the absence of a clear physical demarcation on the ground.
  • Indian troops regularly patrol up to the Indian-perceived border and then return to their base.
  • During these patrols, soldiers leave behind indicators of their presence, such as Indian-made items like cigarette packets or matchboxes.
• Article 4 of the 2005 Border Pact: Guidelines for Troop Conduct
  • The 2005 border agreement, particularly Article 4, provides guidelines for handling face-offs between Indian and Chinese troops:
    • Self-Restraint in Face-offs: Both sides are required to exercise restraint and take necessary measures to prevent escalation if there is a face-to-face encounter due to differing perceptions of the LAC.
    • No Use of Force: Neither side shall use or threaten to use force during such encounters.
    • Mutual Courtesy and No Provocative Actions: Troops must treat each other courteously and avoid any actions that could provoke tensions.
    • Prohibition on Markings: Neither side is allowed to place marks or signs at the confrontation points.

Key highlights of the agreement

• Restoration of Patrolling Rights in Depsang Plains and Demchok
  • India and China have agreed to restore mutual patrolling rights in the Depsang Plains and the Demchok region, areas with disputes predating the 2020 incursions.
  • Indian troops will now be allowed to patrol up to Patrolling Points (PP) 10 to 13 in the Depsang Plains and the Charding Nullah in Demchok.
    • However, areas where previous disengagements occurred—such as Galwan Valley, Pangong Tso, and Gogra-Hot Springs—are not open for renegotiation.
  • This agreement is seen as a step toward resolving long-standing legacy issues.
• Process of Disengagement, De-escalation, and Demilitarization
  • The agreement is expected to initiate a process of disengagement, de-escalation, and demilitarization in the areas where both nations currently have 50,000 to 60,000 troops each.
    • The phased approach of the agreement will focus first on disengagement, followed by de-escalation and eventual de-induction of forces.
  • Focus on Preventing Future Clashes
    • The agreement aims to prevent incidents like the 2020 Galwan clashes, which resulted in the deaths of 20 Indian soldiers and at least four Chinese soldiers.
  • Future Path
    • The endorsement of the agreement by Indian PM Modi and Chinese President Xi should lead to a reduction in tensions along the LAC and set the stage for normalizing relations between the two countries.

Diverging Interpretations

• Difference
  • Following the meeting between PM Modi and President Xi Jinping, differences in interpretation emerged.
  • India's statement emphasized a "complete disengagement and resolution of issues that arose in 2020.
  • On the other hand, China's statement highlighted "important progress" on resolving relevant border issues, reflecting a more cautious tone.
• Contrasting Views on the Impact of the Border Dispute
  • India has reiterated that the border standoff must be resolved before normalizing bilateral ties, indicating no "business as usual" until then.
  • In contrast, China maintains that the border issue should not affect broader relations, suggesting it prefers a compartmentalized approach.
• Planned Steps for Resolving the Border Dispute
  • Indian side mentioned that Special Representatives would soon meet to seek a fair, reasonable, and mutually acceptable solution to the boundary question.
  • Meanwhile, China's statement suggested future talks at multiple diplomatic levels to restore relations to sound and steady development.

Conclusion: Cautious Optimism in India’s Strategic Circles

• There is cautious optimism in India about the path forward, acknowledging that the border agreement has initiated a trust-building process.
• The three-step process—disengagement, de-escalation, and de-induction—is expected to take at least a couple of years to complete if both sides adhere to the agreement.
• It remains unclear whether these steps will occur in parallel or sequentially.

Why in News?

The Union Cabinet has approved a Rs 1,000-crore venture capital (VC) fund aimed at supporting about 40 space start-ups over the next five years.

This fund, launched under the aegis of IN-SPACe, is expected to attract private investment and drive innovation in India's growing space sector.

What’s in Today’s Article?

• Supporting India's Emerging Space Entrepreneurs
• What is IN-SPACe and its Proposal to Set-up a VC Fund for Start-ups?
• Financial Implications of Establishing a VC Fund for Start-ups
• Details/ Significance of the VC Fund for Start-ups

Supporting India's Emerging Space Entrepreneurs:

• Key initiatives:
  • Pre-Incubation Entrepreneurship (PIE) Development Program: The Indian government, through IN-SPACe, launched the PIE Development Program, for guiding startups from ideation to prototype development.
  • Financial and regulatory support:
    • The government has introduced tax incentives such as GST exemptions for satellite launches and income tax breaks for R&D.
    • Initiatives like the Startup India Seed Fund, DRDO’s Technology Development Fund, and Atal Innovation Mission are providing critical financial support to space startups.
  • World-class infrastructure: The GIFT City in Gujarat is emerging as a global hub for space technology, offering regulatory benefits and world-class infrastructure.
  • Collaborations: Amazon Web Services (AWS) has launched its space accelerator programme in India, in collaboration with ISRO and IN-SPACe, selecting 24 startups to receive mentorship and up to $100,000 in credits.
  • Incubation and mentorship: The Space Technology Incubation Centre (STIC) offers startups access to advanced labs, funding opportunities, and mentorship.
• Challenges faced by space startups:
  • Limited early-stage funding
  • Access to substantial government grants remains limited, and procurement processes are not always transparent.
  • Startups face difficulties in accessing testing facilities and standardised technology-sharing platforms.
  • The absence of affordable public liability insurance poses financial risks for startups.
  • Limited IP protection standards hinder innovations.
  • Export restrictions hinder the global expansion of Indian space startups.
• Future outlook:
  • Upcoming trends like space tourism, asteroid mining, and advancements in AI and ML are expected to revolutionise the space sector.
  • Startups are likely to play a significant role in future space exploration and commercialisation efforts, including major missions like Gaganyaan, NISAR, and Chandrayaan-4.
  • The introduction of a deep tech startup policy and continued strategic investments will be crucial for fostering growth.
  • It is essential for stakeholders to engage with startups and create a nurturing environment for technological advancements.

What is IN-SPACe and its Proposal to Set-up a VC Fund for Start-ups?

• As part of the 4th ‘Atmanirbhar Bharat Abhiyan’ stimulus, the Union Finance Minister announced the creation of the Indian National Space Promotion and Authorization Center (IN-SPACe) in 2020.
• IN-SPACe was set up as a single-window, independent, nodal agency to authorise, promote and supervise space activities of private non-governmental entities (NGEs).
• Since its establishment, IN-SPACe has signed 45 MoUs with NGEs to support them in space activities.
• IN-SPACe has proposed a Rs.1000 crore VC fund to support the growth of India's space economy, currently valued at S8.4 billion, with a target to reach $44 billion by 2033.
• With nearly 250 space startups emerging across the value chain, timely financial support is crucial to ensure their growth and prevent talent loss overseas.
• The fund aims to address the critical need for risk capital, as traditional lenders are hesitant to fund startups in this high-tech sector.

Financial Implications of Establishing a VC Fund for Start-ups:

• The deployment period of the proposed Rs.1,000 crore VC fund is planned to be up to five years from the actual date of start of the fund operations.
• The average deployment amount could be Rs 150 - 250 crore per year, depending on the investment opportunities and fund requirements.
• The indicative range of investment is proposed to be Rs10 - 60 Crore, contingent upon the stage of the company, its growth trajectory, and its potential impact on national space capabilities.
• Indicative equity investment range could be:
  • Growth stage: Rs 10 Crore - 30 Crore 
  • Late growth stage: Rs 30 Crore - 60 Crore
  • Based on the above investment range, the fund is expected to support approximately 40 startups.

Details/ Significance of the VC Fund for Start-ups:

• The proposed government-backed fund will boost investor confidence, attract private capital, and signal the government's commitment to advancing space reforms.
• It will serve as an Alternative investment Fund under SEBI regulations, providing early-stage equity to startups and enabling them to scale for further private equity investments.
• The fund is strategically designed to advance India's space sector, aligning with national priorities and fostering innovation and economic growth through the following key initiatives:
  • Capital infusion
  • Retaining companies in India
  • Growing space economy
  • Accelerating space technology development
  • Boosting global competitiveness
  • Supporting Atmanirbhar Bharat
  • Creating a vibrant innovation ecosystem
  • Driving economic growth and job creation
  • Ensuring long-term sustainability
• By addressing these points, the fund aims to strategically position India as one of the leading space economies.

Why in News?

The Government of India has taken a significant step in localising weather forecasting by introducing hourly five-day weather forecasts at the Gram Panchayat level.

This initiative aims to equip rural communities with crucial weather data to enhance agricultural activities and disaster preparedness.

What’s in Today’s Article?

• Importance of and Challenges in Localised Forecasting
• Launch of the Weather Forecasting at the Gram Panchayat Level
• Key Features of the Weather Forecasting at the Gram Panchayat Level Initiative
• Significance of the Weather Forecasting at the Gram Panchayat Level Initiative
• Conclusion

Importance of and Challenges in Localised Forecasting:

• Importance:
  • Localised weather forecasting plays a critical role in managing the unpredictability of weather systems, which is especially vital as climate change increases the frequency and intensity of adverse weather events.
  • It offers precise data at the local level, benefitting even small communities.
• Challenges:
  • While IMD has advanced forecasting at broader levels, predicting localised events like cloudbursts remains challenging.
  • Currently, weather forecasting is available at district and block levels, but IMD aims to provide hyper-local forecasts down to 1 km x 1 km grids, with 3 km x 3 km grids already being tested.

Launch of the Weather Forecasting at the Gram Panchayat Level:

• About the initiative:
  • The initiative, formally launched by the Ministry of Panchayati Raj, is a collaborative effort between -
    • The Ministry of Panchayati Raj,
    • India Meteorological Department (IMD), and
    • The Ministry of Earth Sciences.
• Objective:
  • The primary goal is to empower rural communities, helping them become more resilient to climate challenges and better prepared for natural disasters.
  • The initiative promotes sustainable agricultural practices at the grassroots level.

Key Features of the Weather Forecasting at the Gram Panchayat Level Initiative:

• What will be forecasted?
  • The localised weather forecasts will provide real-time hourly updates on:
    • Temperature
    • Wind speed and direction
    • Cloud cover
    • Rainfall
    • Relative humidity
  • In addition, five-day forecasts will give minimum and maximum temperatures, rainfall, cloud cover, and wind data.
• Platforms for forecasts:
  • The forecasts will be accessible via the e-GramSwaraj and Gram Manchitra portals, as well as the Meri Panchayat app.
  • These platforms provide vital weather data to support rural decision-making.
• Training for panchayat representatives:
  • The Panchayati Raj Ministry is organising a workshop for more than 200 representatives from Panchayati Raj institutions.
  • The workshop will equip them with the skills to use weather forecasting tools effectively, enabling them to make informed decisions that enhance climate resilience in their communities.

Significance of the Weather Forecasting at the Gram Panchayat Level Initiative:

• Benefits to farmers and rural communities:
  • The forecasts directly aid farmers by allowing them to plan agricultural activities like sowing, irrigation, and harvesting more effectively.
  • Micro forecasts are particularly important in rural areas due to the growing unpredictability of weather patterns caused by climate change.
• Disaster preparedness: The Panchayati Raj Ministry emphasised the role of these forecasts in safeguarding agricultural livelihoods, helping rural communities prepare for natural disasters, and boosting climate resilience.

Conclusion:

• The launch of localised weather forecasting at the Gram Panchayat level marks a transformative step in empowering rural communities, improving agricultural outcomes, and enhancing disaster preparedness.
• As IMD continues to refine its capabilities, this initiative is set to play a critical role in adapting to climate-induced changes.