Economy

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RBI proposes Daily Financial Conditions Index

Context: The Reserve Bank of India (RBI) has proposed a daily Financial Conditions Index (FCI) to enhance real-time monitoring of India’s financial health.

Relevance of the Topic: Prelims: Key facts about Financial Conditions Index.

Daily Financial Conditions Index

The FCI is a composite index proposed by the RBI to track real-time financial market conditions in India on a daily basis.
It is designed to capture and reflect the prevailing conditions across key segments of the financial system including-
- Money market
- Government securities (G-sec)
- Corporate bonds
- Equities
- Foreign exchange market
The index aims to provide a high-frequency measure of how tight or easy financial market conditions are, relative to their historical average since 2012.

Features of Financial Conditions Index

The FCI is built using 20 market-based indicators.
The FCI is standardised- meaning values are shown in standard deviations from the average (since 2012).
The proposed FCI traces movements in financial conditions in India across both periods of relative calm as well as crisis episodes.
- Higher positive FCI indicates tight financial conditions.
- Lower negative FCI indicates easy financial conditions.

Objective of daily Financial Conditions Index

To provide a real-time, daily assessment of India’s financial environment.
To help policymakers, analysts, and market participants understand how monetary and financial conditions evolve.
To track stress or buoyancy in different financial market segments.
To improve timely policy responses during periods of financial turbulence or boom.

Implications

Helps RBI assess how financial markets respond to interest rate or liquidity changes.
Works as an early warning system for economic stress.
Supports data-driven decision-making in fiscal and monetary policy.

Key Events Tracked by the Financial Conditions Index

The FCI has effectively captured major episodes of financial stress and easing in India:

Taper Tantrum (2013): Financial conditions tightened significantly due to fears of the US Federal Reserve reducing its bond purchases. This led to capital outflows, a falling rupee, and rising bond yields.
IL&FS Crisis (2018): The default by IL&FS caused panic in the bond market, increased credit risk premiums, and led to tighter financial conditions.
COVID-19 Outbreak (2020): The onset of the pandemic triggered a severe tightening of financial conditions due to a sharp sell-off in equity and corporate bond markets.
Post-COVID Period (2021-2022 ): The index suggests that in the aftermath of the pandemic, exceptionally easy financial conditions were driven by the combined impact of amiable conditions across all market segments.
Mid-2023 to Early 2025: Conditions remained largely easy, backed by buoyant equity markets and surplus liquidity, before tightening from November 2024 due to global policy shifts.
March 2025: FCI peaked again briefly but later normalised, indicating a return to near-neutral financial conditions.

India's Goldilocks Moment

Context: The Finance Ministry’s Monthly Economic Review (MER) recently described the Indian economy as being in a “Goldilocks Moment”.

Relevance of the topic:

Prelims: Concept of Goldilocks Moment in economics.

Mains: Goldilocks Moment - causes, significance, challenges in sustaining balanced growth.

What is Goldilocks Moment in Economy?

Goldilocks moment describes a ‘perfect’ market where interest rates are low, economic growth remains stable and inflation appears moderate.

Factors responsible for Goldilocks Moment:

The Monetary Policy Committee (MPC) reduced the policy repo rate by 100 basis points over the last three meetings. Lower interest rates encourage borrowing, investment, and consumption.
Retail inflation based on the Consumer Price Index (CPI) has dipped to a 75-month low of 2.82%. Inflation control boosts consumer purchasing power and reduces input cost pressures on industry.

Strong growth forecast - the economy is expected to grow at 6.3-6.8% this fiscal (FY26).
The report highlighted that the growth momentum from the fourth quarter of the last fiscal (FY25) continues.
Various high frequency economic indicators, such as e-way bill generation, fuel consumption and PMI, are showing continued resilience.
Significantly, rural demand has strengthened further while urban consumption is picking up as reflected by the rise in air passenger traffic and hotel occupancy.

Challenges:

Signs of slowdown in areas like construction inputs and vehicle sales.
Brief Israel-Iran tensions led to a spike in crude oil prices, posing risks to India’s current account and fiscal deficit. Though prices have eased after a ceasefire, shipping insurance and supply route risks remain high.
Global growth continues to face headwinds, with persistent trade frictions, heightened policy uncertainty and geopolitical conflicts.

These external challenges could potentially impact India’s growth trajectory and warrant close and continuous monitoring. India can leverage geopolitical shifts to attract investment and manufacturing.

The government aims to boost the economy through Agriculture reforms, Manufacturing and tech missions and Deregulation to increase productivity.

India unveils Aluminium and Copper Vision Documents

Context: India unveiled the Aluminium and Copper Vision documents at the international conference of World Mining Congress (WMC). The conference was hosted by the Indian National Committee of the WMC in Hyderabad, India.

Relevance of the Topic: Prelims: Key features of Aluminium and Copper Vision Document, Production targets and strategies.

These documents outline the long-term roadmaps to build a globally competitive and environmentally responsible aluminium industry and a sustainable, resilient and future-ready copper ecosystem, aligning with the vision of Viksit Bharat @2047.

Aluminium Vision Document

Status: India has an untapped potential in the aluminium sector. Despite being the world’s second-largest producer, India contributes only 6% to global output.
Key Targets:
- Scale up aluminium production six-fold by 2047
- Expand bauxite production capacity to 150 million tonnes per annum (MTPA)
- Double National aluminium recycling rate
- Adopt low-carbon technologies for sustainable production
- Strengthen raw material security through targeted policy reforms and institutional frameworks.
Significance: Support India’s shift towards clean energy, electric mobility (EVs), and sustainable infrastructure development.
Key Facts:
- Bauxite (a sedimentary rock) is the primary ore of Aluminium. Odisha is India's largest bauxite-producing state and has the largest bauxite reserves.
- In FY23, Odisha produced 17.4 million tonnes of Bauxite which accounts for ~73% of the nation’s share.

Copper Vision Document:

Copper has a vital role in India’s energy transition, infrastructure growth, and green technology. It is an essential input in solar panels, EVs, turbines, electricity grids, semiconductors, undersea cables, and munitions.
The vision document anticipates a six-fold increase in the demand of Copper by 2047.
Key Targets:
- Addition of 5 million tonnes per annum of smelting and refining capacity by 2030.
- Scaling up secondary refining and enhance domestic recycling
- Reduce dependence on open-market imports by securing overseas mineral assets through global partnerships.
Key Facts:
- Copper ore is typically found in the Earth's crust in the form of copper minerals, such as chalcopyrite, bornite, malachite, chalcocite etc.
- Copper was added to India’s 30 critical minerals list in 2023 and is supported by the National Critical Mineral Mission.
- Domestic ore production in FY24 was 3.78 million tonnes. India’s copper reserves are mainly located in Rajasthan, Madhya Pradesh and Jharkhand.
- India is reliant on imports to meet its demand. India imported raw copper ores and concentrates worth US$ 3.3 billion in FY23, largely from Chile, Indonesia, Australia, and Peru.

Can a GI tag prevent cultural misappropriation?

Context: Recently, at its Spring/Summer 2026 menswear show in Milan, Italian luxury brand Prada unveiled footwear inspired by India’s Geographical Indication (GI) tagged Kolhapuri chappals, sparking accusations of ‘cultural misappropriation’.

Relevance of the Topic: Prelims: Key facts about the Geographical Indications (GI) tag.

What is a GI tag?

Geographical Indications of goods refer to the place of origin of a product.
GI tags are a form of Intellectual Property Rights (IPR) that identifies goods as originating from a specific country, region or locality, where their distinctive qualities, characteristics, or reputation are essentially linked to that ‘place of origin’.
Awarded by: Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry.
In India, there are currently 658 registered GI-tagged goods, including Chanderi sarees (Madhya Pradesh), Madhubani painting (Bihar), Pashmina shawls (J&K), Kancheepuram silk (Tamil Nadu), and Darjeeling tea (West Bengal).

Key features of GI registration:

Unlike trademarks, which are owned by enterprises, GIs are public property belonging to the producers of the concerned goods and cannot be assigned, transmitted or licensed.
GI registration is given to an area, not a trader. Once a product gets the registration, traders dealing in the product can apply to sell it with the GI logo.
Any trader’s body, association, or organisation can apply for a GI tag. The applicants need to prove the uniqueness of the item with historical records and a complete breakdown of how the product is made. Authorised traders are each assigned a unique GI number.
Raw materials for such products do not have to come from that region (unless it is an agricultural tag). E.g.,
- Leaf in Banarasi paan is not grown in Varanasi; it comes from Bihar, West Bengal, or Odisha.
- Mulberry silk used in Kancheepuram sarees comes from Karnataka and the gold zari from Surat.

Significance of GI tag:

GIs serve as a powerful marketing tool, driving rural development, boosting exports, enhancing consumer confidence, and preserving ‘cultural knowledge’ of local communities, farmers and indigenous groups.

Can an unauthorised trader sell the GI product?

Legal protection of GIs stem from international instruments like:
- Under the Paris Convention for the Protection of Industrial Property (1883) GIs are covered as an element of IPRs.
- Clearer definition under the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, 1995.
India, as a TRIPS signatory, enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999, which came into force in 2003. The Act provides for GI registration, enforcement of rights, prohibition of unauthorised use and penalties for infringement.
If any unauthorised trader tries selling the product under that name, they can be prosecuted under the Geographical Indications of Goods (Registration and Protection) Act, 1999. However, GI rights are primarily ‘territorial’ and consequently limited to the country (or region) where protection is granted. At present, no automatic ‘world’ or ‘international’ GI right exists.

Indian traditional products have time and again suffered exploitation by global corporations. To prevent such cases in the future, one could start by expanding the Traditional Knowledge Digital Library to include wider traditional grassroots expressions.

Making a ‘searchable database’ would allow brands to conduct due diligence and searches to identify right holder communities for collaboration.

Need to revisit Food and Fertiliser Subsidies

Context: With poverty levels now at historic lows, India needs to revisit food and fertiliser subsidies.

Relevance of the Topic: Prelims: Key facts of macroeconomic growth Mains: Food and Fertiliser subsidies - issues, solutions.

Over the past decade, India has achieved significant macroeconomic growth and a sharp decline in extreme poverty.

Nominal GDP increased from $2.04 trillion (2014) to $4.19 trillion (2025)
GDP (PPP) increased from $6.45 trillion to $17.65 trillion- 3rd largest globally.
Per Capita Income (PPP) increased from $4,935 to $12,131.
Inequality (Gini Index) - remained moderate (0.34 in 2014 to 0.33 in 2020)

With extreme poverty now at just 5.3%, there is a need to revisit inefficient subsidies- especially food and fertiliser subsidies. These subsidies claim the largest resources in the agri- food space and yet sub-optimal results.

Issues with Subsidies

High Fiscal Burden: The food subsidy budget for FY26 is set at Rs 2.03 lakh crore. India is giving free food (rice or wheat, 5kg/person/month) to more than 800 million people. The fertiliser subsidy budget for FY 2025-26 is set at ₹1.56 lakh crore.
Exclusionary: Fertiliser subsidies often benefit large farmers disproportionately, while small and marginal farmers struggle with access.
Distortionary: The PDS and MSP regime's wheat-rice focus distorts cropping patterns, leading to regional monoculture and neglect of pulses, oilseeds, and millets.
Promote Environmentally unsustainable practices: E.g., Unbalanced utilisation of fertilisers, over-consumption of water etc.
Leakages and Corruption: Food subsidies under PDS suffer from diversion, ghost beneficiaries, and low-quality delivery. Fertiliser subsidies go to manufacturers, not directly to farmers- creating scope for over-invoicing, black marketing, and cross-border smuggling (e.g., to Nepal and Bangladesh).
Does not address structural issues such as poor irrigation, low R & D, poor marketing infrastructure etc.

Way Forward

Food subsidy can be rationalised by giving beneficiaries food coupons (digital wallet) to buy nutritious food- pulses, milk, eggs from designated stores. This will help plug leakages, diversify diets, promote nutrition, and diversify the production basket.
Fertilizer subsidy can be rationalised by giving fertiliser coupons to farmers and deregulating the prices of fertiliser products.
Farmers can use these coupons to buy chemical fertilisers or bio-fertilisers or do natural farming. This will help fix the imbalance in the use of nitrogen (N), phosphorus (P), and potassium (K), reduce leakages, and encourage better products and farming methods.

There is a need to move from universal, input-based subsidies to targeted, output-oriented support that improves nutritional security, efficiency, and environmental sustainability.

Mains Practice Question

Q. With extreme poverty at historic lows, do you think it is time to rationalise food and fertiliser subsidies in India? Discuss the issues associated with the current subsidy regime and suggest reforms to make it more efficient, equitable, and sustainable.

From Farm to Shelf: Food Processing Sector

Context: Government-led reforms and schemes have transformed India’s food processing sector into a driver of inclusive growth, agricultural integration, and global engagement.

Relevance of the topic:

Prelims: Key government Initiatives for the Food Processing Sector.

Mains: Significance of the Food Processing Sector.

Food Processing Sector

Food processing is a technique of manufacturing and preserving food substances in an effective manner with a view to enhance their shelf life; improve quality as well as make them functionally more useful.
Once characterised by unorganised production and high post-harvest losses, the sector has now emerged as a key pillar of rural empowerment, entrepreneurship, and agri-industrial integration. Food Processing has emerged as a sunrise sector accounting for 11% of GVA in agriculture and 10% of GVA in manufacturing.

Significance of Food Processing Sector:

Promote agricultural diversification by increasing demand for raw material. E.g., Tribal women in Bastar transformed Mahua flowers into chocolates and herbal tea.
Reduce post harvest losses (about Rs 92000 Crore) through Cold chain infrastructure.
Boost agricultural exports E.g., Makhana of Bihar has turned into a global snack brand and now exports to the US and Canada.
Address nutritional insecurity through food fortification.
Promote inclusive growth through secondary agriculture and job creation.
Establish forward and backward linkages.

With following government initiatives, the food processing sector has emerged as one of the most potent instruments of inclusive growth, agricultural integration, and global engagement.

Pradhan Mantri Kisan SAMPADA Yojana:

Objective: Infrastructure creation, modernisation, and preservation of food products.
Key Outcomes:
- Created 250 lakh MT of annual processing and preservation capacity.
- Leveraged ₹22,000 crore private investment leveraged.
- 53 lakh farmers directly benefited and 7.6 lakh employment opportunities generated.

Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme:

Launched under: Atmanirbhar Bharat Abhiyan with an outlay of Rs 10,000 crore.
Objective: Empower unorganised micro food enterprises through formalisation, credit, and skilling.
Key Achievements:
- Over 1.41 lakh loans sanctioned, worth ₹11,205 crore
- 3.3 lakh SHG members supported it with seed capital.
- Over 1 lakh individuals trained in entrepreneurship & skills
- To foster innovation and support early stages enterprises, 75 incubation centres were approved.
- 17 regional brands launched, promoting local products.

Production Linked Incentive (PLI) Scheme for Food Processing Industries;

Objective: Catalyse large-scale investments, industrial capacity, and formal job creation
Achievement : With committed investment of ₹8,900 crore, the scheme has led to the creation of over 3.3 lakh new jobs and added more than 67 lakh MT processing capacity.

Budgetary Support for Infrastructure (Union Budget 2024-25)

Key Announcements:

50 multi-product irradiation units to improve shelf life and reduce losses.
100 NABL-accredited food testing laboratories for improved quality control.
Establishment of National Makhana Board to promote value addition, branding, and global recognition of Makhana.

Institutional Support and Innovation Ecosystem:

NIFTEM-Kundli and NIFTEM-Thanjavur, Institutes of National Importance, are training next-gen food technologists and entrepreneurs.
New NIFTEM is coming up in Bihar to utilise the eastern region’s potential.
India's food tech startup ecosystem is thriving with over 5,000 food-tech start-ups working on Plant-based foods, AI-enabled traceability, functional foods, sustainable packaging.

Global Branding and Investment Platform:

World Food India: An international platform by the Ministry of Food Processing Industries to promote investment, innovation, and global collaboration, showcasing India’s strength across the agri-food value chain.

The food processing sector in India is undergoing a major transformation- from farm to shelf. With strong government support, it is reducing post-harvest losses, creating jobs, boosting exports, and empowering rural communities.

SEZ rules relaxed to boost Semiconductor Manufacturing

Context: The Ministry of Commerce and Industry has recently notified changes to the Special Economic Zones Rules, 2006, to enhance the domestic manufacturing of semiconductors and electronics.

Relevance of the Topic: Mains: Significance of semiconductors, Challenges, government Efforts, etc.

Semiconductors

Semiconductors are used to manufacture components like transistors and diodes that are integral to modern electronic devices.
According to the Semiconductor Industry Association, China accounted for about 35% of all semiconductors manufactured in the world in 2021.
Post-COVID-19, countries like India recognised the risks of overdependence on a single source for critical supplies. This led to efforts to diversify supply chains and promote domestic manufacturing of key components for greater self-reliance and resilience.

Government efforts to boost Semiconductors Production:

Semicon India Programme has been launched with a total outlay of ₹76,000 crore for the development of semiconductor and display manufacturing ecosystem in the country. It aims to provide financial support to companies investing in semiconductors, display manufacturing and design ecosystems.
Six chip manufacturing facilities are under construction for the manufacturing and assembly of semiconductor chips, under the India Semiconductor Mission.
Key rules related to Special Economic Zones (SEZs) have been relaxed to further encourage the domestic manufacturing of semiconductors and electronics.

Amendments to Special Economic Zones (SEZ) Rules, 2006

Recently, the Ministry of Commerce and Industry has notified several modifications to the Special Economic Zones (SEZ) Rules, 2006 to enhance the domestic manufacturing of semiconductors.

Minimum Land Size Reduced: Earlier, an SEZ set up exclusively for the manufacture of semiconductors or electronic components needed a minimum contiguous land area of 50 hectares. This has now been significantly reduced to 10 hectares. This reduced size will allow companies to make smaller investments but still avail of SEZ benefits such as tax exemptions, duty-free imports, and infrastructure support.
Relaxation of ‘Encumbrance-Free’ Land Rule: Previously, land had to be completely free of legal disputes to be used for SEZs. But with India’s complex land records and legal delays, this was a major bottleneck. Relaxing this rule will allow SEZs to come up faster.
Domestic Sales from SEZ allowed: Conventionally, SEZs are exclusively export-oriented. Recent amendment allows SEZ units in semiconductor and electronics component manufacturing to supply domestically, after paying the applicable duties. Allowing domestic sales not only shields the SEZs from the ongoing global trade uncertainty, but also ensures a steady supply to the domestic market itself.

Impacts:

Following the amendments, two new SEZs have already been approved with a total investment of ₹13,100 crore.

Micron Semiconductor Technology India will establish an SEZ facility in Sanand, Gujarat to manufacture semiconductors with an estimated investment of ₹13,000 crore.
Hubballi Durable Goods Cluster, a part of the Aequs Group, will establish an SEZ facility for the manufacture of electronic components in Dharwad, Karnataka, at a cost of ₹100 crore.

Also Read: India’s push for Semiconductor Chip Production amid Rising Imports

India ranks 71st on Energy Transition Index 2025: WEF

Context: India has ranked 71 out of 118 countries in the recently launched Energy Transition Index (ETI) by the World Economic Forum.

Relevance of the Topic: Prelims: Key facts about the Energy Transition Index.

Energy Transition Index

Launched by: World Economic Forum
ETI ranks countries based on their progress towards energy transition from fossil fuels to clean energy.
The report benchmarked the performance of energy systems of 118 countries across:
- Threesystem performance dimensions- energy security, sustainability and equity.
  - Energy security: presence of a stable and resilient energy supply through developing a diversity of energy sources as well as grid and power supply reliability)
  - Equity: access to energy for all, including consumers and industries.
  - Sustainability: promoting energy sources that have lower impacts on the environment such as lower carbon footprints.
- Five transition readiness factors- political commitment, finance and investment, innovation, infrastructure, and education and human capital.
The Index used 43 indicators under these broad categories using data from multiple sources and organisations, and scored countries on a scale of 0 to 100.

Energy Transition Index 2025

Global Highlights:

Sweden (score 77.5) topped the list of 118 countries, followed by Finland and Denmark. China was ranked 12th, and the US was 17th.
While the majority of countries improved their scores in 2025, the share of countries advancing across all three energy dimensions was only 28%, which reflects uneven progress.
Despite $2 trillion in clean energy investment in 2024, emissions hit a record 37.8 billion tonnes in the hottest year on record (2024), as energy demand rose 2.2% driven by artificial intelligence, data centres, cooling and electrification.

India-specific Highlights:

India’s rank has fallen from 63rd in 2024 to 71 out of 118 countries in 2025. India scored 53.3 on the Index.
India has made progress in lowering energy intensity and CH4 emissions, favourable energy regulations and increasing clean energy investments.
India needs improvement in grid reliability, energy access for rural areas and further reducing dependence on imported energy. This requires further investment in infrastructure, renewables, labour force development and financing to boost the country’s energy transition.

As per WEF, the top five largest economies- China, the US, EU, Japan and India- will determine the pace and direction of the global energy transition due to their sheer size.

Together, they account for around half of the global GDP, population and total energy supply (TES), and also nearly two-thirds of global emissions, giving them an outsized influence through their consumption patterns, investment flows and policy choices.

India to be world’s 4th largest electric car maker by 2030

Context: India’s planned electric four-wheeler manufacturing capacity is projected to rise over tenfold to 2.5 million units by 2030, up from just 0.2 million at present, making it the fourth-largest electric car producer globally after China, Europe, and the US.

Relevance of the topic:

Prelims: Key facts- EV Manufacturing status; FAME I, FAME II, PLI-Auto, PM E-DRIVE, SPMEPCI.

Mains: EV Policy in India: Progress & Gaps

Electric Vehicle Manufacturing in India

Rapid Expansion

By 2030, India’s electric car demand is estimated to reach between 0.4-1.4 million units, up from 0.1 million in 2024. The electric vehicle (EV) penetration rate would be around 7-23% in four-wheelers from 2% in 2024.
India’s electric car production capacity is expected to reach 2.5 million units, and the manufacturing capacity would outstrip domestic demand. India’s anticipated production capacity will be far behind China’s 29 million, EU’s 9 million, and 6 million in the US.

Need to catch up Pace:

To protect local manufacturers, India has maintained import tariffs of up to 70-100% on fully built EVs. However, this protective stance also limits consumer choice and raises costs. Presently, almost 100% of India’s EV manufacturing is only for its domestic market.
By 2030, India’s cell production capacity will lag behind China, Europe, the US, and Canada. China is expected to lead with a cell manufacturing capacity of 4,818 gigawatt hours (GWh), in contrast to India at 567 GWh.

Govt. Initiatives to drive India's EV Sector:

FAME Scheme (Phase I & II)
PLI Scheme for Automobile and Auto Components (PLI-Auto)
PLI Scheme for Advanced Chemistry Cells (PLI-ACC)
PM E-DRIVE Scheme (Electric Drive Revolution in Innovative Vehicle Enhancement)
SPMEPCI Scheme (Scheme to Promote Manufacturing of Electric Passenger Cars in India)

The increase in domestic EV manufacturing aligns with the government’s strategy to ‘Make in India for the world’. However, Indian companies will need to lower the cost of manufacturing to compete with exports from China.

Also Read: Addressing Policy Gaps in India’s EV Journey

India’s Journey to Growth and Economic Leadership

Context: At a GDP of $4.2 trillion, India has become the 4th largest economy in the world, in nominal GDP terms overtaking Japan. With the significant progress of the past decade, India’s imprint on the global economy is set to expand.

Relevance of the Topic: Mains: Key Trends supporting India’s growth story: Can be directly used as data points in Mains answers.

India’s growth and transformation across various sectors

India has witnessed significant transformation across various dimensions in the past decade, which can be reflected in:

Macroeconomic Growth and Stability:

Average growth since 2014 has been 6.4%.
Inflation has come down from 9.4% in FY14 to 4.6% in FY26 providing much-needed stability for households and businesses.
Capital expenditure has grown significantly, reaching Rs 11.2 lakh crore in 2025-26.

Infrastructure Development

India’s infrastructure development has been one of the most visible symbols of the country’s economic transformation and inclusion.

Roadways and Highways:
- National highways expanded from 91,287 km in 2014 to 1,46,204 km in 2024. The speed of construction has increased from 12 km/day to 34 km/day.
- The emphasis on last-mile connectivity has resulted in nearly four lakh km of rural roads being built, bringing 99% of rural India into the national network.
Railways:
- A total of 25,871 route kilometres (RKM) of new tracks were laid, significantly higher than the 14,985 RKM added in the previous decade.
- India leads the world in locomotive manufacturing, producing 1681 locomotives in 2024-25. This is more than the combined output of the US, Europe, and Japan.
- Freight movement has surged with Indian Railways becoming the world’s second largest cargo transporter, handling 1617 million tonnes annually.
Civil Aviation:
- The number of operational airports has grown from 74 to 160 between 2014 and 2025, with the UDAN scheme bringing air connectivity to remote towns.
- The government’s vision of expanding to 300 airports by 2047 underlines its continued focus on logistics and accessibility.
Urban Transformation:
- Urban Transformation has continued through Smart Cities Mission, with over 8000 projects and investments worth Rs 1.64 lakh crore.
Digital Public Infrastructure:
- Led by platforms like UPI and Aadhaar, this public-first approach has enabled real-time payments, direct transfers, and expanded rural banking through Jan Dhan and digital access points.
- DPI is projected to reach about 3-4% by 2030. India’s DPI has now been adopted in over 12 countries. Over 141 crore Aadhaar registrations and 60 crore UPI transactions every day signify their reach and acceptance.

Social Infrastructure and Poverty Reduction:

Healthcare: The number of medical colleges has grown from 387 to 780, and AIIMS institutions from seven to 23. MBBS and PG seats have also more than doubled. Health insurance under Ayushman Bharat covers 350 million people.
17.1 crore people have been lifted out of poverty. The poverty rate has fallen from 29.17% in 2013-14 to 11.28% in 2022-23.
Over 530 million Jan Dhan accounts have been opened. Forty million homes have been built, 120 million toilets constructed, and 100 million families cook with clean LPG.
Tap water connections have also reached 140 million households under “Har Ghar Jal” Yojana.
110 million farmers now receive direct income support through PM-KISAN.

Clean Energy:

Solar capacity has grown from 2.82 GW in 2014 to over 105 GW, with total clean energy capacity now at 228 GW.
India is the third-largest solar and fourth-largest wind energy producer globally.

Industrial Technological Advancement

Electronics Manufacturing has increased six times to cross Rs 12 lakh crore. Electronics exports have crossed Rs 3 lakh crore. India is now the second largest mobile phone producer. Production of electronic components is gaining pace under the new Electronic Components Manufacturing Scheme.
Semiconductor Mission: First commercial lab is under construction; five OSAT units are underway; over 20 chipsets with indigenous IP have been designed by students and engineers in India.
IndiaAI Mission: Over 34,000 high-speed computer chips, known as GPUs, are now available to all at just one-third the global cost to support AI development. AI-Kosha platform offers over 370 datasets and 200 ready-to-use AI models for learning and innovation.

Introduction of GST, New laws like Telecom Act and DPDP Act, over 1,500 old laws were repealed and 40,000-plus compliances removed. These policy reforms have encouraged investment, innovation, and formalisation, creating a virtuous growth cycle.

However, more needs to be done to improve ease of doing business, reduce compliance burdens, enhance competitiveness, and integrate more deeply into global supply chains.

Sustainable Nickel Extraction - Hydrogen Plasma Method

Context: A new study by researchers at the Max Planck Institute for Sustainable Materials, Germany, revealed a sustainable method to extract Nickel from low-grade ores using hydrogen plasma instead of carbon.

Relevance of the Topic: Prelims: Key facts about Hydrogen Plasma Based Nickel Extraction

About Nickel

Nickel is a critical metal used in several clean energy technologies, especially Electric Vehicles (EVs), as it is a major component of lithium-ion batteries used in EVs.
Traditional nickel extraction is Carbon intensive, producing 1 tonne of nickel and emitting over 20 tonnes of CO₂.
While EVs are seen as a cleaner alternative to traditional fossil fuel-powered vehicles, there are hidden environmental costs associated with their production, especially in the manufacturing of lithium-ion batteries.

The new study has introduced a sustainable, one-step method to extract nickel using hydrogen plasma instead of carbon.

Hydrogen Plasma Method

Traditional Nickel Extraction is multi-step, energy-intensive and relies on carbon. Nickel oxide is heated with carbon, which removes the oxygen and produces pure nickel, along with carbon dioxide emissions.
Hydrogen Plasma Method: The method replaces carbon with hydrogen plasma as the reducing agent and uses electricity as the energy source, specifically through an electric arc furnace. It is conducted in a single electric arc furnace, unlike the current multi-step process (calcination → smelting → reduction → refining).
- Hydrogen gas, when subjected to high-energy electrons in an electric arc, splits into high-energy ions, entering a plasma state. Plasma is the extremely hot and reactive fourth state of matter. It is distinct from solids, liquids, and gases.
- Hydrogen plasma acts as a reducing agent and rapidly reduces the metal oxides. From a thermodynamic perspective, the process is not only cleaner but significantly faster.
- The end product of hydrogen reacting with oxygen is water, not carbon dioxide. Therefore, the entire process is carbon-free, using only electricity, hydrogen, and yielding water as a byproduct.

The findings present a significant advancement in making nickel production cleaner and more energy-efficient.

Key Benefits of Hydrogen Plasma Method:

84% reduction in direct carbon dioxide emissions compared to conventional processes.
Up to 18% more energy-efficient and faster, reducing both energy consumption and time.
The only byproduct of the process is water (H₂O) instead of CO2.
The method produces high-purity ferronickel- an alloy with which stainless steel can be made, eliminating the need for extensive refining steps and making the overall process more sustainable.
The process is particularly effective on nickel laterite ores, which are abundant but underutilised due to traditional methods requiring high-grade ores. This has special significance for India, which has substantial laterite deposits in Odisha’s Sukinda region.

However, scaling the method for industrial use would require significant initial investments, access to renewable energy, and further research on kinetics and plasma stability.

Empowering Women in Agriculture

Context: The United Nations General Assembly has declared 2026 as the International Year of the Woman Farmer. The resolution celebrates the essential role of women in global agriculture while raising awareness of their challenges, which include property rights and market access.

Relevance of the Topic: Mains: Role of women in Agriculture and challenges faced by them.

Women in Agriculture

Women contribute 60-80% of food production in developing countries and form 39% of the agricultural labour force in South Asia.
In India, approximately 80% of all economically active women are employed in agriculture.
According to Periodic Labour Force Survey (PLFS) 2023‑24, 64.4 % of India's agricultural workforce are women.

These figures highlight the vital role of women in agriculture. Yet, their contribution remains undervalued due to systemic gender biases in land ownership, access to credit, and representation in policy making.

Key Challenges Faced by Women Farmers

Land Ownership Disparity: In India, the percentage of women who own agricultural land is significantly lower than that of men, despite women constituting a substantial part of the farm workforce. Only 14% of agricultural landholders in India are women; NFHS-5 puts this figure even lower at 8.3%.
Limited access to formal credit: Lack of land ownership makes it difficult to obtain credit and limits their access to financial institutions. While microfinance and self-help groups provide some access, such loans are often insufficient for significant investments. Less than 15% of female farmers access institutional credit (NABARD All India Rural Financial Inclusion Survey 2016-17). Consequently, they rely on informal sources, leading to exploitative debt cycles.
Invisibility in Agricultural Policy: Agricultural policies and schemes are often male-centric. As per MS Swaminathan, “The female face of farming is missing from policy frameworks.”
Double Burden and Time Poverty: Time Use Survey (2019) shows women spend 3-5 hours more daily on unpaid care work, reducing their capacity for skill-building or secondary livelihoods.
Limited access to technology: Regular access to information on agricultural planning and advisory is essential for farmers, but women have more limited access to technology, such as mobile phones.
Mechanisation Gap: Mechanised tools are predominantly designed for male farmers.
Climate Change disproportionately affects women farmers by increasing their domestic responsibilities and elevating their exposure to agricultural risks like crop failure.

These obstacles hinder investments, technology adoption and improvements in livelihoods.

Government Initiatives for Women in Agriculture:

The Government of India supports small women farmers to enhance skills and promote sustainable agriculture.

Mahila Kisan Sashaktikaran Pariyojana (MKSP): Upgrades skills and increases resource access for women.
Sub-Mission on Agricultural Mechanisation: Offers 50–80% subsidies on farm machinery for women.
National Food Security Mission (NFSM): 30% fund allocation for women in some states and UTs.
Self-Help Groups (SHGs) and DAY-NRLM: Promote group farming, micro-financing, and entrepreneurship.

Way Forward: Policy Recommendations

Gender-Sensitive Agricultural Policies: Policy design and implementation should take into account the unique needs of women farmers. E.g., Designing Women-Centric Farm Tools.
Granular data with a gender lens are needed to develop solutions tailored to women’s needs.
Focus on agri-value chains that support women farmers and are managed by women.
Enhance women’s access to financing mechanisms and information while supporting their collective action and networks, such as women’s self-help groups.
Secure Land Ownership through joint or individual land titles.

Women are the backbone of agriculture, yet they remain marginalised in land rights, credit access, and decision-making. As M.S. Swaminathan aptly said, "If agriculture is to be sustainable and equitable, the invisible face of the woman farmer must become visible.