February 4, 2025

Current Affairs

Agriculture Sector in Budget 2025

Context: In the Union Budget, the government has termed agriculture as the first engine of growth and announced PM Dhan Dhanya Yojana. The Economic Survey 2024-25 claimed the agriculture sector as the sector of the future.

Relevance of the Topic: Mains: Detailed question on agriculture sector; challenges; issue; prospects.

Government Efforts in Budget 2025:

PM Dhan-Dhaanya Krishi Yojana:
- New scheme announced to provide impetus in agriculture growth to 100 districts in the country (under phase 1).
- Focuses on five key aspects; enhancing productivity, improving irrigation facilities; improve credit availability; to adopt crop diversification; to augment post harvest storage at panchayat and block level.
Rise in Kisan Credit Card interest subvention:
- A rise to 5 lakh from 3 lakh in the Modified interest subvention scheme.
Boosting fisheries sector-
- The budget is targeted to boost the fisheries sector as it has increased the budgetary allocation of fisheries by 1500 crore.
- Also there is a reduction from 30% to 5% on the custom duties on Frozen Fish Paste for the manufacturers and exporters to provide a boost to the fisheries sector in India.
Promoting crop diversification-
- Atmanirbhar in pulses- Budget has announced a six-year long mission to become self-reliant in the in pulses with a special focus on tur, urad and masoor.
- Fox seed (Makhana) development- Government has also announced a 100 crore budget for the Makhana Board of Bihar to boost the processing and value addition of the fox seeds.
National Mission on Seeds:
- The National Mission on High Yielding Seeds will be launched.
- Aim: To enhance the research ecosystem, focus on developing and promoting seeds with high yields, pest resistance, and climate resilience, and make more than 100 seed varieties commercially available.
Mission for cotton productivity:
- This would be a five-year mission, it will facilitate significant improvements in productivity and sustainability of cotton farming, and promote extra-long staple cotton varieties.
- The best science and technology support will be provided to farmers.
Enhancing loan limits for farmers:
- The finance minister also announced increasing the loan limit under the Modified Interest Subvention Scheme (MISS) from Rs 3 lakh to Rs 5 lakh.
New Urea fertilizer plant
- To achieve self-sufficiency in urea fertilizer, the finance minister announced to set up a plant with an annual capacity of 12.7 lakh metric tons at Namrup in Assam.

Prospects of Agriculture Sector:

Largest workforce participation: A maximum of 46.1% of the labour force participate in the agriculture and allied activities, making it the largest sector to provide employment to the people.
Women participation: As per Oxfam 80% of the agriculture laborers are women, also maximum women SHGs are associated with the agriculture and allied activities leading to an impetus to women empowerment and participation in the economic activities.
Fostering associated ecosystem: Agriculture activities are associated with the food processing industries, boost to agriculture productivity will lead to the growth of these export and consumer associated sectors
Helping in rural demand growth: Growth of agriculture will lead to the boost in the demand of the rural regions leading to more investments in the rural sector.
Poverty alleviation- As per the situation assessment survey of agriculture, 22% of Below poverty line belong to the agriculture sector/ Agriculture growth and investment will lead to the targeted poverty alleviation.

Major Challenges in the Agriculture Sector:

Climate stress- The climate change and unpredictable weather patterns adversely affect the crop yield. Eg; Kashmir saffron production declined from 8 metric tons in the past 12 years.
Fragmented land holding- Around 80% of Indian farmers operate on small plots, that hinders the economies of scale and affects profitability.
Lack of modernisation- India agriculture lacks the modernisation techniques especially for the women participants in the agriculture. Eg; Agriculture mechanisation level in India is around 40% that is considerably lower than China and USA
Price fluctuation and market uncertainties- Farmers often lack direct access to markets, leading to dependence on intermediaries who may offer unfavorable prices.
Informal credit- Indian farmers, despite numerous efforts for financial inclusion, depend on the informal sources of the credit. Eg; 23% farm credits are from informal sources.
Limited agriculture extension- Farmer and agriculture development is restrained by the limited research and development and underdeveloped agriculture extension in India.

Way Forward:

Adopting climate-resilient crops, cooperative farming, and smart irrigation practices.
Integrating technology through AI-based advisory services and digital marketplaces like e-NAM to enhance productivity and market access.
Strengthening MSP procurement and financial support, including improved crop insurance to safeguard farmers from distress.
Sustainable practices like organic farming and integrated pest management to ensure long-term soil health.
Government initiatives such as PMKSY and PMFBY, along with private sector participation, to drive agricultural transformation.

A holistic approach combining policy support, technology, and sustainability can make Indian agriculture more resilient, productive, and profitable for farmers.

India’s Emphasis on Neighbourhood First Policy: Budget 2025

Context: In the Union budget 2025, the Ministry of External Affairs has been allocated a sum of 20,516 crores, with an emphasis on Neighbourhood First Policy (NFP).

Relevance of the Topic: Prelims: Key facts about Neighbourhood First Policy (NFP).

Key allocations in the MEA budget for 2025-26

Emphasis on Neighbourhood First Policy (NFP):
- Immediate neighbours of India have been allocated Rs 4,320 crore, or 64% of the total scheme portfolio, for large infrastructure projects (hydroelectric plants, power transmission lines, housing, roads, bridges, integrated check-posts).
- The allocations highlight India's continued focus on regional diplomacy.
Major changes in Foreign Aid Allocations**: (**Just for understanding, no need to remember the allocated amounts)
- Bhutan: Increased to Rs 2,150 crore (from Rs 2,068 crore in last year’s budget estimate).
- Maldives: Increased to Rs 600 crore (from Rs 400 crore in budget estimate).
- Afghanistan: Reduced to Rs 100 crore (from Rs 200 crore in budget estimate).
- Myanmar: Increased to Rs 350 crore (from Rs 250 crore in budget estimate).
- Nepal: Maintained at Rs 700 crore.
- Sri Lanka: Increased to Rs 300 crore (from Rs 245 crore in budget estimate).
- Bangladesh: Unchanged at Rs 120 crore.
Other regions**:
- African Nations: Increased to Rs 225 crore (from Rs 200 crore).
- Latin America: Reduced to Rs 60 crore (from Rs 90 crore in revised estimate).
- Chabahar Port (Iran): Unchanged at Rs 100 crore.

About Neighborhood First Policy (NFP)

India’s ‘Neighbourhood First policy’ guides its approach towards the management of relations with countries in its immediate neighbourhood: Afghanistan, Bangladesh, Bhutan, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka. It officially came to being in 2008.
Aim: To enhance physical, digital and people to people connectivity across the region, as well as augmenting trade and commerce.
Focus:
- To create mutually beneficial, people-oriented, regional frameworks for stability and prosperity.
- India engages with these countries on a consultative, non-reciprocal and outcome-oriented basis, driven by the principles of Samman (respect), Samvad (dialogue), Shanti (peace), and Samriddhi (prosperity).
This policy has evolved into an institutional priority for all the relevant arms of the Government managing relations and policies with our neighbourhood.

Importance of Neighbourhood First Policy

Countering Chinese influence: By collaborating closely with neighbouring countries, India can counterbalance Chinese influence in the Indian Ocean region.
Support in multilateral forums: Working with neighbouring partners strengthens India's leadership role in representing the interests of the Global South at international forums. This fosters better understanding and cooperation on global issues.
Ensuring territorial integrity: Collaboration with neighbouring countries is essential for India to protect its territorial integrity and tackle separatist threats effectively.
Increasing maritime security: Effective cooperation with neighbours is key to bolstering maritime security, which enables India to tackle transnational security challenges more effectively.
Addressing energy security: Close cooperation with neighbouring countries is critical for India's energy security, particularly concerning the import of oil and gas through sea routes.
Bridging development deficits: Actively engaging with neighbouring countries helps in the development of India's northeastern states, thus narrowing development disparities in the region.
Leveraging soft power diplomacy: India's deep cultural and historical connections with its neighbours strengthen people-to-people ties, solidifying India's influence in the region through soft power diplomacy.

Challenges:

Geopolitical tensions: Issues like border disputes and political disagreements can complicate relationships.
Implementation issues: Difficulties in executing cross-border projects due to logistical and bureaucratic challenges.
Economic differences: Different levels of economic development among neighbouring countries can affect the balance and effectiveness of cooperation.

Initiatives taken as a part of NFP

Under NFP, India has been assisting neighbouring countries on development of infrastructure projects, augmentation of capabilities and extending financial, budgetary, and humanitarian assistance.
Some important examples include:

1. Afghanistan:

Humanitarian Assistance- Supply of Wheat, medical aid, vaccines, scholarship schemes for Afghan students.
Salma Dam- Major hydroelectric & irrigation project
Zaranj-Delram Highway- 218 km long road project connecting Delaram district in Afghanistan to the border of Iran.

2. Bangladesh:

Maitree Thermal Power project- 1320MW coal-fired power station under construction in Rampal, Bangladesh.
India-Bangladesh Friendship Pipeline- 131.5 km long oil pipeline connecting Siliguri in North Bengal to Parbatipur in Bangladesh's Dinajpur province.
Agartala-Akhaura rail link- Spanning 12.24 km and costing Rs 972 crores, designed to enhance trade between India's North-East and Bangladesh.

3. Bhutan:

Expansion of Paro International Airport.
Introduction of RuPay card in Bhutan as a cross-border payment initiative.
India-Bhutan SAT (jointly developed by India and Bhutan) launched by ISRO in 2022.
Hydropower projects- key collaboration in Mangdechhu, Chukha, Tala Project, Kuricchu hydro projects.
Aid in building Gelephu Mindfulness City.

4. Maldives:

Greater Male Connectivity Project- 6.7 km long bridge connects the capital city Male with the nearby islands.
Grant Assistance of USD 100 million to ease financial challenges- 2022.
Coastal Surveillance Radar System comprising 10 radar stations handed over to Maldives.
Indira Gandhi Memorial Hospital in Maldives (gifted by India)

5. Myanmar:

Kaladan Multi-Modal Transit Transport Project- Enhancing connectivity to Mizoram & NE India from ports through Sittwe port in Myanmar.
Sittwe port- deepwater port constructed by India at Sittwe, Rakhine State in Myanmar.
Border Area Development Program- multifaceted development in the international border to bridge physical and social infrastructure gaps.
India-Myanmar-Thailand Trilateral Highway Project- connect India's Northeast region with Thailand via Myanmar,
Humanitarian assistance- supply of vaccines during COVID-19 and medical aid.

6. Nepal:

Jayanagar-Kurtha line- 35 kms long cross-border railway line between India and Nepal to enhance connectivity.
Motihari-Amlekhgunj pipeline- 69 km long trans-border petroleum pipeline between Amlekhgunj Oil Depot in Parsa, Nepal and Motihari, Bihar.
Hydropower projects- key collaboration in Sapta Kosi dam project, Upper Karnali Project, Arun - III project etc.
High Impact Community Development Projects (HICDP) to build hospitals, colleges, drinking water facilities, sanitation, drainage, rural electrification etc.

7. Sri Lanka:

Colombo Port Terminal project- expansion of Colombo Port.
Jaffna Cultural Centre- promoting cultural ties.
Solar Energy Projects- 135-MW solar power plant in Trincomalee, Sri Lanka.
$1 billion credit line to Sri Lanka for financial assistance.

Other Major Initiatives:

Major Infrastructure Projects

BBIN Initiative (Bangladesh, Bhutan, India, Nepal): Improving Road and rail connectivity.
Kaladan Multi-Modal Transit Transport Project: Connecting India with Myanmar and further with Southeast Asia.
Chabahar Port: Developing a strategic port in Iran to improve connectivity with Afghanistan and Central Asia.

Regional Forums

SAARC (South Asian Association for Regional Cooperation) aimed at promoting regional cooperation. However, the effectiveness of SAARC has been limited due to political differences, particularly between India and Pakistan.
BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) has gained prominence as an alternative to SAARC, focusing on economic cooperation, security, and cultural exchange among countries bordering the Bay of Bengal.

India’s comprehensive and longstanding ties with its neighbouring countries also stand on their own footing and are independent of the relations of these countries with third countries.

Concept of Citizenship in India

Context: The U.S. President Donald Trump issued an executive order stating that U.S. citizenship will be granted in the future only to children with parents holding U.S. citizenship or a U.S. green card. In this context, let us understand the concept of citizenship, the legal system surrounding it in the USA and India.

Relevance of the Topic: Prelims: Key facts about Citizenship.

Concept of Citizenship:

Citizenship refers to full and equal membership of a nation and owe allegiance to it. It grants individuals civil rights, political rights, fundamental rights, and responsibilities. Hannah Arendt described it as the "right to have rights." For example:

The Constitution confers the following rights and privileges on the citizens of India:

Right against discrimination on grounds of religion, race, caste, sex, or place of birth (Article 15).
Right to equality of opportunity in the matter of public employment (Article 16).
Right to freedom of speech and expression, assembly, association, movement, residence, and profession (Article 19).
Cultural and educational rights (Articles 29 and 30).
Right to vote in elections to the Lok Sabha and state legislative assembly.
Right to contest for the membership of the Parliament and the state legislature.
Eligibility to hold certain public offices, that is, President of India, Vice-President of India, judges of the Supreme Court and the High Courts, Governor of states, Attorney General of India, and Advocate General of states.

Along with the above rights, the citizens also owe certain duties towards the Indian State, as for example, paying taxes, respecting the national flag and national anthem, defending the country and so on.

Principles of Citizenship

Jus Soli ("Right of Soil")
- Citizenship is granted based on place of birth, regardless of parents' nationality.
- Followed by North & Latin American countries (e.g., U.S., Canada, Mexico, Brazil).
Jus Sanguinis ("Right of Blood")
- Citizenship is determined by the nationality of parents rather than place of birth.
- Followed by many African, European, and Asian nations (e.g., Germany, India, Egypt).

Citizenship Laws in the U.S.

The 14th Amendment (1868) guarantees citizenship to all persons born or naturalized in the U.S.
The U.S. Supreme Court (1898) reaffirmed this right, regardless of parents' citizenship.
The Trump administration's executive order (2024) sought to restrict birthright citizenship to children of U.S. citizens or Green Card holders.
A federal court stayed the order, calling it "blatantly unconstitutional."

Note:

In India, both citizens by birth as well as naturalised citizens are eligible for the office of President while in the USA, only a citizen by birth and not a naturalised citizen is eligible for the office of President.

Evolution of Citizenship rules in India

Citizenship in India is governed by the Citizenship Act, 1955.
Before 1987: India followed jus soli – anyone born in India was granted citizenship.
1987–2004: At least one parent had to be an Indian citizen for the child to get Indian citizenship.
Since 2004: Both parents must be Indian citizens, or one parent should be a citizen while the other not an illegal immigrant (to prevent illegal migration, particularly from Bangladesh).
Citizenship Amendment Act (CAA), 2019: It grants accelerated citizenship to Hindus, Christians, Sikhs, Jains, Buddhists, and Parsis from Pakistan, Afghanistan, and Bangladesh if they entered India before December 31, 2014.