Economy

All (4050)Current Affairs (4038)Mains Practice (126)Mains PYQs by Subjects (40)

Integrated Agriculture: Lavender Honey and Apiculture 

Context: In Kashmir’s Pulwama, the Council of Scientific and Industrial Research’s Indian Institute of Integrative Medicine (CSIR-IIIM) is producing India’s first monofloral lavender honey, a kilogram of which sells for up to ₹6,000. 

Relevance of the topic:

Prelims: Key facts about Lavender: Govt. Schemes to promote Integrated Agriculture.

Mains: Integrated Agriculture: Apiculture & Floriculture.

Lavender Honey

  • The product is developed under the flagship CSIR Floriculture Mission, and is poised to feed the market for functional foods and grow sustainable agriculture and rural bio-enterprise.
  • A kilogram of it sells between ₹5,000 and ₹6,000 in the global market, six times higher than the price of regular organic honey.
  • The CSIR-IIIM is in the process of filing for geographical indication (GI) for Kashmir lavender honey and upscale its production in the coming years.

About Lavender

  • Lavender is a perennial aromatic plant native to countries bordering the Mediterranean. It is a non-native species of aromatic plant in India. 
  • It is used as an ornamental plant and commercially cultivated as a culinary herb and to extract essential oils.

Benefits of cultivating Lavender: 

  • Purple Revolution: Expansion of lavender cultivation for commercial purposes (E.g., production of lavender honey, essential oils etc.) 
  • Lavender isnot susceptible to pest infestation and acts as a pest barrier due to its antifungal, antimicrobial, and anti-bacterial properties.
    • The highly fragrant crop produces volatile organic compounds diffusing a strong scent that deters insects and pests by overpowering the insect’s olfactory receptors. This makes the pest unable to detect other scents (E.g., apple blossoms). 
    • Rodents attack the roots and stems of fruit-bearing trees like apples and plums. Lavender has been proven to keep away rodents. 
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CSIR-Aroma Mission: 

  • Launched in 2016, the mission focuses on cultivation of aromatic crops (lavender, rose, lemongrass, rosemary, vetiver, mint, etc.) and generating new avenues of self-livelihood and entrepreneurship.
  • Under the CSIR-Aroma Mission, lavender farmers are offered end-to-end support, including cultivation, processing, value addition, and marketing.

CSIR Floriculture Mission: 

  • Launched in 2021, the mission focuses on promoting the floriculture sector in India. It includes commercial floral crops, seasonal/annual crops, wild ornaments and cultivation of flower crops for honey bee rearing. 
  • Floriculture can give 5 times more return than the traditional crops to farmers besides having potential to provide employment to a large number of people.

Beekeeping/ Sweet Revolution

  • The scientific practice of Beekeeping (Apiculture) has the potential to promote eco-friendly and sustainable agriculture along with higher yields leading to increase in income levels of farmers. The Sweet Revolution can act as a major tool to promote socio-economic development.

Beekeeping has great potential for the small and marginal farmers, landless labourers etc. on account of following reasons:

  • Increases crop yields by 20-30% through cross pollination.
  • Additional source of income for paid pollination service.
  • Less capital Intensive and hence can be practiced by poor farmers.
  • Requires no land and can be practiced by landless labourers.
  • Other products such as bee pollen, bee-venom costlier than honey. 
  • Nutritional Security: More than a third of the global food basket is comprised of bee pollinated crops. 
  • Growing demand for honey in the overseas market and hence scope for more export earnings. 

The Government has launched the National Beekeeping and Honey Mission in 2020 to harness the potential of the Sweet Revolution. Beekeeping should be considered as an input of agriculture, which could enhance the efficacy of other inputs and accordingly training should be provided to farmers. 

Madhopur Barrage Breach 

Context: After heavy rainfall in Jammu and Kashmir and Punjab two gates of the Madhopur Barrage downstream of Ranjit Sagar Dam on Ravi river collapsed, leading to flooding in Pathankot and Gurdaspur. 

Relevance of the Topic: Prelims: About Madhopur Barrage, Ravi River, Ranjit Sagar Dam etc.

What are Headworks?

  • Headworks are structures built across a river to divert water into canals for irrigation, drinking, or industrial use.

What is Barrage? 

  • Barrage is one of the components of Headworks. It is a low, gated structure built across a river to regulate and divert its flow into canals.

How does Barrage differ from a dam?

  • A dam stores large quantities of water in a reservoir. A barrage regulates/diverts river flow (like a tap), without large storage.
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About Madhopur Barrage: 

  • Madhopur Barrage was built in the 19th century on the Ravi River in Gurdaspur district near Pathankot. 
  • It is located on the border with Jammu and Kashmir.
  • It diverts water into the Upper Bari Doab Canal for irrigation in Punjab.
  • It supplies water to Gurdaspur, Amritsar, Tarn Taran, and nearby regions through canals. 

Causes of the Breach: 

Natural Factors: 

  • Heavy Rainfall & Floods: Sudden cloudbursts in Ravi’s catchment caused massive inflows. 
  • High Release from Ranjit Sagar Dam: Upstream dam (20 km away) discharged 2.21 lakh cusecs creating extreme pressure.
  • Debris & Siltation: Flow carried debris that jammed gates and increased stress.

Human / Negligence Factors: 

  • Delayed Operation of Gates: Water was released late, leading to sudden pressure buildup.
  • Poor Maintenance: Gates were not used regularly; rusting and mechanical jamming occurred. Inadequate greasing, oiling, and rust-prevention.
  • Aging Infrastructure: Built in 1959, parts of the barrage had deteriorated like other old barrages (E.g., Hussainiwala).
  • Outdated Design Assumptions: Structures not upgraded for climate change induced rainfall extremes.

Import Duty Exemption on Cotton 

Context: Indian government has extended the duty-free cotton import policy until December 31, 2025, to alleviate the impact of the 50% US tariffs on textile exports. 

Relevance of the Topic: Prelims: Key trends related to Cotton Production & textile industry in India. 

Cotton Production in India: Key Trends

  • Cotton is the main raw material for the textile industry and is grown by nearly six million farmers in India. 
  • The import duty on cotton (11% import duty) was announced in the 2021 Budget when India had surplus cotton production (350 lakh bales of cotton annually against the requirement of 335 lakh bales). It was aimed at protecting the interest of cotton growers.
  • At present, domestic cotton production in India has declined.
    • Overall domestic cotton production is down to 294 lakh bales (the lowest in the last 15 years) against the requirement of 318 lakh bales (including non-mill use). 
    • In FY 2025, India’s cotton imports surged 107% from FY 2024 (rising from $579 million to $1.2 billion).
  • In the present cotton season 2024-25, imports are likely to be highest at about 40 lakh bales with major supplies coming from Australia, the US, Brazil, and Egypt. 

Cotton textile exports accounted for approximately 33% of India’s total textile and apparel exports in 2024-25, making it the second-largest contributor after readymade garments. 

Import Duty Exemption on Cotton: 

  • The Indian government has extended the duty-free cotton import policy until December 31, 2025, to alleviate the impact of the 50% US tariffs on textile exports. 
  • Rationale: To lower input costs across the textile value chain and enhance the competitiveness of Indian textiles in the global market. 

Benefits of Import Duty Exemption on Cotton: 

  • Addresses raw material (cotton) shortage faced by the textile industry. Cotton production in the 2024-2025 cotton season (October to September) is estimated to be nearly 20 lakh bales less than the last cotton season. 
  • Reduces input cost across the textile value chain, including yarn, fabric, garments etc. and gives much needed relief to the textile industry (impacted by the 50% tariffs by the US).  
  • Enhances export competitiveness of Indian textiles by lowering production costs and safeguarding small and medium enterprises (SMEs) in the sector. 

To safeguard the interest of the domestic cotton producers: 

  • The Cotton Corporation of India (CCI) purchased nearly 100 lakh bales of cotton from farmers at Minimum Support Price (MSP) during the ongoing cotton season spending ₹37,500 crore, and has sold 73 lakh bales in the market. 
  • For the 2025-2026 cotton season, the government has hiked the MSP by 8%. The MSP mechanism by CCI ensures that farmers receive at least 50% above their cost of production. Imported cotton often caters to specialised industrial requirements and does not substitute domestic cotton.

India’s textile industry is the second-largest employment provider in the country. The textile industry seeks a stable policy from the government so that the industry can plan for raw material procurement.  

Govt Push for E-Commerce Exports amid US Tariff Hit

Context: The Ministry of Commerce and Industry has initiated consultations with industry stakeholders (Amazon, Flipkart, MSMEs, retailers) to explore ways of boosting e-commerce exports, especially under the E-Commerce Export Hubs (ECEHs) model announced in the Union Budget.

Relevance of the topic:

Prelims: State of E-Commerce in India.

Mains: E-commerce in India- state, potential, issues, government policies.

In the backdrop of the US imposing 50% tariffs on Indian products, the Indian government is pushing to strengthen e-commerce exports as an alternative route to sustain export growth. A major debate has emerged on whether FDI should be permitted in the inventory-based model of e-commerce, which MSMEs support but retailers oppose.

What is E-Commerce?

  • E-Commerce (Electronic Commerce) refers to the buying and selling of goods and services using digital platforms and electronic networks, particularly the internet.
  • It enables Business-to-Business (B2B), Business-to-Consumer (B2C), and even Consumer-to-Consumer (C2C) transactions across domestic and international markets.

Models of E-Commerce in India:

  • Marketplace Model: 
    • E-commerce companies act as facilitators between buyers and sellers.
    • 100% FDI is permitted under the automatic route in this model.
    • Example: Amazon, Flipkart (platforms connecting sellers to buyers).
  • Inventory-Based Model:
    • E-commerce entities own inventory of goods and sell directly to consumers.
    • FDI is not permitted in this model.
    • Example: Reliance Digital’s online stores.

Current State of E-Commerce in India: 

  • India’s e-commerce industry is dominated by MSMEs and small businesses exporting goods valued between $25 and $1,000.
  • Popular export products: handicrafts, art, books, ready-made garments, gems and jewellery.
  • India’s total e-commerce exports currently stand at only $5 billion, which is far below China’s $300 billion.
  • According to GTRI (Global Trade Research Initiative), India’s e-commerce exports have the potential to reach $350 billion by 2030.

Challenges in India’s E-Commerce Exports: 

  • Policy and Regulation: Current rules are a patchwork framed for regular B2B exporters, creating a high compliance burden on small firms. No separate e-commerce export policy exists yet.
  • FDI Restrictions: FDI permitted only in the marketplace model, not in the inventory model → limits global competitiveness.
  • Logistics and Infrastructure: Poor logistics integration, high shipping costs, and lack of streamlined customs processes hamper efficiency. India's logistics costs remain high: 10-12% of GDP as compared to 8-10 % global benchmark.
  • MSME Burden: Small exporters face difficulties in customs clearance, returns, and international payments.
  • Global Competition: India’s e-commerce exports, at just $5 billion, lag far behind global leaders such as China ($300 billion) and rapidly growing players like Vietnam and South Korea.

Government’s Current Push

  • E-Commerce Export Hubs (ECEHs) announced in the Union Budget to promote small exporters.

E-Commerce Export Hubs (ECEHs): 

  • E-Commerce Export Hubs (ECEHs) initiative aims to establish dedicated zones for facilitating cross-border e-commerce exports from India.
  • These hubs are designed to support SMEs, Artisans, and small businesses by mitigating the cost and time associated with logistics, regulations, and returns processing. 
  • Each ECEH will offer integrated services at a single location including customs clearance, quality certification, packaging, off-port warehousing, and support for re-imports of returns or rejected goods. 
  • ECEHs are envisioned as part of a broader push under the Foreign Trade Policy (FTP) 2023 which includes digital trade facilitation, outreach (like Niryat Bandhu scheme), and infrastructure like Dak Ghar Niryat Kendras (DNKs), and improved courier export limits. 
  • Economic Survey further underscores that ECEHs will connect MSMEs, Artisans, and One District One Product (ODOP) initiatives with global markets, thus enhancing logistics efficiency and economic inclusion in Tier 2 and Tier 3 cities.
  • DPIIT has begun consultations with stakeholders to explore reforms.
    • MSMEs are advocating for allowing FDI in inventory-led models to ease compliance and boost competitiveness.
    • Retailers, however, oppose inventory-based FDI, fearing it could hurt small traders and lead to monopolisation by global giants.

Way Forward

  • Dedicated E-Commerce Export Policy: Frame a unified policy addressing customs, returns, payments, and compliance burdens specific to digital trade.
  • FDI and Regulatory Reforms: Revisit FDI norms in the inventory-led model with safeguards for MSMEs and small retailers.
  • Integrated Logistics Infrastructure: Operationalise E-Commerce Export Hubs (ECEHs) with end-to-end facilities for warehousing, packaging, and streamlined customs clearance.
  • Digital Empowerment of MSMEs: Provide targeted skilling, digital onboarding, branding, and fintech solutions to integrate small exporters into global e-marketplaces.
  • Global Trade Engagement: Leverage FTAs and WTO negotiations to secure favourable digital trade rules and expand market access.

The GTRI estimate of $350 billion e-commerce exports by 2030 highlights the immense untapped potential of India’s digital trade. Achieving this target will require a dedicated e-commerce export policy, supportive FDI frameworks, robust logistics infrastructure, and effective integration of MSMEs into global value chains.

Income Tax Act 2025 

Context: The Income Tax Act 2025 has received the President’s assent. The new law will come into force from 1st of April 2026. The landmark reform replaces the Income Tax Act of 1961 and ushers in a simpler, transparent and compliance-friendly direct tax regime.

Relevance of the Topic: Mains: Key Features of Income Tax Act 2025.

Income Tax Act 2025

  • The Income Tax Act 2025 will replace the Income Tax Act of 1961. 
  • The Act introduces a simpler, transparent and compliance-friendly direct tax regime.
  • The new law will come into force from the next financial year starting April 1 2026.

Key Features of the Income Tax Act 2025

Simplification of the Law: 

  • The number of sections has been reduced from 819 to 536, chapters from 47 to 23, and the overall word count from 5.12 lakh to 2.6 lakh.
  • It introduces 39 new tables and 40 formulas, making tax computations easier and more transparent.
  • Redundant provisions and archaic language have been removed, ensuring that the law is simpler to read, understand, and implement.

Refunds and Return Filing: 

  • Earlier draft had restricted refund claims only to returns filed within the due date. In the new Act, this provision has been removed, and taxpayers can now claim refunds even in the case of belated returns.

TCS on Liberalised Remittance Scheme (LRS): 

  • The Act clarifies that no Tax Collected at Source (TCS) will be applicable on education-related remittances made under the Liberalised Remittance Scheme (LRS), if such payments are financed by banks or financial institutions.

Corporate Taxation Provisions: 

  • Drafting errors relating to inter-corporate dividend deductions for companies under concessional tax regimes have been corrected.
  • The provisions for Minimum Alternate Tax (MAT) and Alternate Minimum Tax (AMT) have been clearly separated:
    • MAT will continue to apply to companies.
    • AMT will apply only to non-corporates who claim tax deductions.
    • LLPs earning only capital gains and not availing deductions will not be liable to AMT.
  • Taxpayers who have no tax liability can now obtain a nil-TDS certificate, reducing procedural hassles.
  • Ambiguities related to transfer pricing and carry-forward and set-off of losses have been removed for greater clarity.
  • For house property income, the Act specifies that the 30% standard deduction will be calculated after deducting municipal taxes.

Relief for Non-Profit Organisations (NPOs): 

  • Earlier, exemption was allowed for only 5% of anonymous donations. Under the new law, exemption is allowed for 5% of total donations, providing greater flexibility to NPOs.
  • The benefit has also been extended to mixed-object registered organisations, broadening the scope of relief for charitable and non-profit bodies.

Retirement and Family Benefits: 

  • The Act provides explicit relief by allowing deductions on commuted pensions and gratuity payments received by family members. This ensures better financial support for dependents in cases of retirement or death of the primary earner.

Introduction of the Tax Year: 

  • The concept of a “Tax Year” has been formally introduced and defined as a 12-month period beginning April 1 each year. This codifies an already existing practice, reducing ambiguity in interpretation.

Digital Searches and Virtual Digital Space: 

  • The Act retains the definition of “Virtual Digital Space”, bringing digital transactions and platforms firmly within the tax net.
  • Tax authorities are empowered to access information during surveys and searches from : Email servers, Social media accounts, Online banking, trading, and investment platforms, Cloud and remote servers, Other digital applications.
  • To safeguard taxpayer privacy, the government has announced that Standard Operating Procedures (SOPs) will be issued for handling personal digital data during such searches.
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GST Rate Rationalisation: Two slab GST proposal gets GoM nod 

Context: The Group of Ministers (GoM) on Rate Rationalisation formed by the Goods and Services Tax (GST) Council has decided to accept the Centre’s two-rate structure proposal for GST. Final decisions on all matters pertaining to GST are taken by the GST Council, as GoMs are only recommendatory bodies. 

Earlier, the former Chief Economic Adviser has emphasised the need for simplification of GST structure and rate rationalisation. 

Relevance of the Topic:Prelims: Features of GST; GST Rate Rationalisation. Mains: Challenges in GST Implementation. 

Features of Goods and Services Tax: 

  • GST is a single tax levied on the supply of goods and services across all stages of the supply chain (right from the manufacturer to the consumer). 

GST subsumes multiple state and central taxes: 

  • Excise duty 
  • Service tax 
  • Additional excise duty 
  • Additional customs duty 
  • States sales tax 
  • Entertainment tax 
  • Octroi tax (Entry tax)
  • GST has dual tax structure: 
    • CGST (Central GST) goes to the Central Government.
    • SGST (State GST) goes to the state government, in which the sale is taking place.
  • GST is a destination based tax. During interstate trade, tax is imposed by the state (importing state) in which the consumption takes place instead of the state which supplied the goods/service. 
  • Rate slabs: There are four primary tax rates (5%, 12%, 18%, and 28%) under GST.  

GST Rate Rationalisation

The GST reforms will simplify the tax structure, reduce disputes on classification of products and also boost consumption. They include: 

  • Elimination of two tax slabs of 12% and 28% in the current GST structure and retention of the 5% and 18% tax rates. This would entail 99% of the items in the 12% slab moving to 5%, and 90% of the items in the 28% slab moving to 18%. 
  • Special slab of 40% for luxury and sin goods: Ultra-luxury goods (like high-end cars) along with sin goods and services such as tobacco, cigarettes, and online real-money gaming would be moved to a higher 40% slab. However, the compensation cess currently being levied on the items in the 28% slab would no longer apply. 
  • Proposed exemption of individual life and health insurance premiums from the 18% goods and services tax (GST) slab to nil. 

Final decisions on all matters pertaining to GST are taken by the GST Council, as GoMs are only recommendatory bodies. The date of the next GST Council meeting is expected to take place in early September 2025.  

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Significance: 

  • Bring down tax burden on consumers: The proposed shift of most items from 12% slab to 5% and from 28% slab to 18% eases costs and enhances affordability for households.
    • The GST rate of essential items (food, cloth) is expected to decline to 5% from 12%, the CPI inflation in this category may also come down by 10-15 bps after considering a 60% pass through effect on food items. 
    • Rationalisation of GST rates of services will lead to another 5-10 bps reduction in CPI inflation on other goods and service items, considering a 25% pass through effect.
  • Spur growth of MSMEs: Lower GST slabs will have a subsequent multiplier effect because of lower reduced logistics costs and simplified compliance, especially for MSMEs. 
  • Makes goods competitive: A lower GST rate for both the final products and their inputs would make Indian goods competitive in global markets. 
  • GST exemption would provide significant relief to millions of Indians currently paying 18% GST on both life and health insurance premiums.

GST reforms align with the government’s broader agenda of growth and financial inclusion.

Concerns of GST Rate Rationalisation:

  • Revenue loss to states due to rationalisation: Earlier rate rationalisation by the GST Council has brought down the effective weighted average GST rate from 14.4% to around 11.6%. With the current rationalisation of rates the effective weighted average GST rate is believed to further come down to 9.5%. 
    • Positive scenario: Lower GST slabs will encourage consumption in the states, lead to higher sales volumes and can partly make up for lower rates.
    • Negative scenario: If consumption growth is not high enough, this will lower the GST revenue of the state (unless compensated by the Central government). According to an SBI research report, estimated revenue loss due to the changes could be ₹85,000 crore per annum and around ₹45,000 crore in the current financial year.
  • Burden on exchequer: GST exemption would cost the exchequer an estimated ₹9,700 crore in annual revenue. 

However, since more than 70% GST collections come from 18% slab (which is not proposed to be changed in general) the revenue impact of GST cuts may be limited, particularly because reduced prices will spur demand. 

There should be a comprehensive discussion on the possibility of loss in revenue for the States due to GST rate rationalisation. If the States incur any losses due to rationalisation, there should be a mechanism to compensate the States and preserve revenue neutrality. 

Also Read: Challenges in GST Implementation 

Need for a Separate Budget for Agriculture

Context: The imposition of 50% penal tariffs by the United States on Indian farm products in 2025 underlines the structural fragility of Indian agriculture and the asymmetry in global trade. 

Relevance of the topic:

Prelims: WTO’s Agreement on Agriculture (AoA); Aggregate Measurement of Support (AMS); MSP, FPOs; PMFBY.

Mains: State of Indian Agriculture, Issues of subsidy. 

Asymmetry in Global Trade

  • The US and EU’s so-called “Green Box” subsidies, which they claim are non-trade-distorting, effectively grant their farmers an unfair advantage in global markets.
                        United States                            India 
As per WTO, the US spends over $48 billion annually on domestic farm support. This includes crop insurance subsidies covering up to 60% of premium. A large number of our farmers are waiting for compensation for their produce losses under PMFBY (Pradhan Mantri Fasal Bima Yojna). 
Price guarantees and marketing loans ensure farmers earn above-market rates.India farmers are waiting for a legal guarantee of MSP. 
Export-linked supports disguised as food aid and development programmes allow the US’s wheat, corn or dairy farmers to sell abroad at or below cost without losing income.India’s WTO-notified support (Aggregate Measurement of Support) is less than 5% of production value. It is far below the 10% limit allowed for developing countries.

State of Indian Agriculture: 

Agriculture sustains 42% of our population and employs 46% of our workforce. It contributes less than 20% of the GDP. The recent NABARD (National Bank for Agriculture and Rural Development) Rural Financial Inclusion Survey reveals that:

  • Low household income: An average farming household earns Rs 13,661 per month, with a mere Rs 4,476 from actual farming, the rest comes from supplementary work, such as working as labourers or engaging in petty trade. 
  • Fragmentation of Land: Average farm size has shrunk from 2.28 hectares in 1971 to 0.74 hectares in 2021 which is too small for efficient mechanisation.
  • High Input Cost: Input costs (diesel, fertilisers, seeds) have risen faster than crop prices, and are squeezing margins.
  • Lack of employment alternatives: A large percentage of India’s population is engaged in agriculture is a symptom not of farming’s attractiveness, but of manufacturing and services failing to create the 7.9 million jobs a year.

The US tariff shock highlights a stark truth- protection alone cannot secure agriculture’s future. The agriculture sector in India needs structural reforms as the long-term strategy. It requires equipping farmers with the essential tools, providing market access, and creating alternative employment opportunities. 

Way Forward

India must implement three urgent and decisive shifts.

  • Labour Transition (From Agriculture to Manufacturing & Services): India must shift surplus workers from low-yield farming into manufacturing and services by promoting labour-intensive sectors like textiles, food processing, and light engineering, supported by rural skill training and urban job creation.
  • Prioritise farm consolidation and mechanisation: Land pooling through cooperative farming, FPOs, and land leasing reforms can enable mechanisation, modern irrigation, and precision farming, thereby raising productivity and reducing costs.
  • Need to boost value addition and enhance export competitiveness:
    • India’s farm exports, which stand at $48.15 billion for 2023-24, could experience substantial growth through improved logistics, branding, and quality certification.
    • Reducing post-harvest losses from the current 15-25% to the global standard of 5% can release vast quantities for export.

Protection serves a purpose, but it is reform that will ultimately secure our agricultural future, and for this the Rashtriya Kisan Kalyan Kosh (a separate budget like defence) is the need of the hour.

Also Read: Needs of Indian Agriculture Sector

Mines and Minerals (Development and Regulation) Amendment Bill 2025

Context: Lok Sabha and Rajya Sabha have recently passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2025. The Bill seeks to amend the Mines and Minerals (Development and Regulation) Act, 1957.  

Relevance of the Topic: Prelims: Key Features of Mines and Minerals (Development and Regulation) Amendment Bill 2025; Critical Minerals and National Critical Mineral Mission.

Mines and Minerals (Development and Regulation) Amendment Bill 2025

The Mines and Minerals (Development and Regulation) Amendment Bill, 2025 seeks to boost the supply of critical and deep-seated minerals, and relax the regime for mineral conservation, zero waste management and extraction of strategic minerals.

Key Features of the Bill:  

Inclusion of other minerals in a Mining Lease :  

Under the Mines and Minerals (Development and Regulation) Act 1957, a mining lease is granted for a specific mineral.

  • The Bill provides that lease holders may apply to the state government for adding other minerals to an existing lease.
    • For inclusion of other minerals, the lease holder must pay an amount equivalent to the royalty for that mineral. 
    • For inclusion of critical and strategic minerals and other specified minerals no additional amount needs to be paid. These include minerals such as lithium, graphite, nickel, cobalt, gold, and silver.
  • In case of auctioned mines, the lease holder must additionally pay the auction premium for the included mineral. The central government may change payment requirements through a notification.
  • An atomic mineral above a specified grade cannot be included in a mining lease granted for non-atomic minerals.

Expanded scope of National Mineral Exploration Trust:  

The 1957 Act established the National Mineral Exploration Trust to fund mineral exploration in the country.

  • The Bill widens the scope of the Trust to fund development of mines and minerals. 
  • It allows the usage of funds in the Trust for exploration and development in offshore areas and outside India. 
  • The Bill renames the Trust as the National Mineral Exploration and Development Trust. 
  • Under the 1957 Act, all lessees are required to pay 2% of royalty into the Trust. The Bill increases the rate of contribution to 3% of the royalty.

Removal of limit on sale for Captive Mines: 

  • Under the 1957 Act, captive mines are allowed to sell up to 50% of minerals produced in a year, after meeting end-use requirements. The Bill removes the limit on sale of minerals. 
  • The Bill also empowers state governments to allow sale of mineral dumps stacked in the leased area up to a date specified by the central government.

Inclusion of contiguous area in mining lease for Deep-seated Minerals : 

  • The Bill allows for a one-time extension of the area under a mining or composite lease. This will be applicable for deep-seated minerals. Deep-seated minerals are minerals which occur at a depth of more than 200 metres from the surface of land. 
  • Mining area may be extended by up to 30% of the existing leased area under a composite licence, and by up to 10% of the existing leased area under a mining lease. A composite licence provides rights for both prospecting and mining.

Mineral Exchanges:

  • The Bill provides for establishing an authority to register and regulate mineral exchanges. 
  • The Bill defines mineral exchange as a registered electronic trading platform or marketplace for trading minerals and metals. 
  • The central government will frame Rules regarding mineral exchanges.

Significance of the Bill: 

  • Boosts domestic exploration and production of critical minerals.
  • Positions India as a major player in global mineral supply chains reducing dependence on China.
  • Encourages private-sector participation via royalty waivers and easier lease amendments.
  • Strengthens energy transition goals (solar, wind, EVs, batteries).
  • Institutionalises mineral trading platforms, improving transparency and investor confidence.

Critical Minerals

  • Natural resources that are essential for economic development, clean energy transition, and national security, but are vulnerable to supply disruptions due to:
    • Limited availability
    • Concentration of supply in a few countries
    • Geopolitical risks 

Examples of Critical Minerals: 

  • Energy Transition Minerals: Lithium, Cobalt, Nickel, Graphite (for batteries & EVs).
  • Technology Minerals: Gallium, Germanium, Rare Earth Elements (for semiconductors, electronics, space).
  • Defence & Aerospace Minerals: Beryllium, Titanium, Tungsten.
  • Others: Copper, Manganese, Molybdenum, Chromium.

Supply of Critical Minerals is highly concentrated: 

  • China: Dominates processing of rare earths, graphite, gallium, germanium.
  • Democratic Republic of Congo: Supplies over 70% of global cobalt.
  • Australia & Chile: Major producers of lithium.

Pradhan Mantri Jan Dhan Yojana (PMJDY)

Context: According to the data presented by the Finance Ministry, over 13 crore Jan Dhan Accounts, i.e., 23% of the total 56 crore opened till July 31, 2025 are inoperative. The amount parked in these accounts stands at over ₹2.64 lakh crore.
Under Reserve Bank of India norms, a savings account is classified as inoperative/dormant if no transactions are recorded for over two years.

Relevance of the topic:

Prelims: Key facts about Pradhan Mantri Jan Dhan Yojana.

Mains: Govt. initiatives towards financial inclusion.

What is financial inclusion?

Financial Inclusion refers to universal access to a wide range of financial services at an affordable cost. These include not only banking products (basic savings, deposit accounts, remittance and credit) but also other financial services such as insurance, pension and equity products.

What are the benefits of financial inclusion?

  • Efficient Mobilization of Resources: When more people come under the banking sector, it leads to increased deposits, allowing for easier mobilization of resources for investment and productive purposes.
  • Poverty Alleviation: Access to formal credit and financial services enables poor households to access cheaper credit, which can help in their economic empowerment. It also prevents them from falling into debt traps, which are often associated with informal or exploitative lending practices.
  • Formalization of the Economy: Financial inclusion helps bring more individuals and businesses into the formal financial sector. This can lead to better regulation and tax compliance.

As per census 2011, only 58% of households are availing banking services in the country.

PM Jan-Dhan Yojana

PM Jan-Dhan Yojana

Pradhan Mantri Jan-Dhan Yojana (PMJDY) was launched to improve financial inclusion. Under the scheme, a basic savings bank deposit account can be opened in any bank branch or Business Correspondent (Bank Mitra) outlet, by persons not having any other account.

Benefits under PMJDY

  • One basic savings bank account is opened for unbanked person.
  • There is no requirement to maintain any minimum balance in PMJDY accounts.
  • Interest is earned on the deposit in PMJDY accounts.
  • Rupay Debit card is provided to PMJDY account holder.
  • Accident Insurance Cover of Rs.2 lakh is available.
  • An overdraft (OD) facility up to Rs. 10,000 to eligible account holders is available.
  • PMJDY accounts are eligible for all the Direct Benefit Transfer (DBT) schemes MUDRA scheme.

Impact of PMJDY

The Pradhan Mantri Jan Dhan Yojana (PMJDY) has been widely regarded as a successful and transformative financial inclusion program in India. Here's an assessment of the key achievements and impact of the PMJDY:

  • Expansion of Banking Access: The scheme significantly increased the number of bank account holders, especially in the unbanked and underbanked segments of the population. As on July 31, 2024, there are 52.99 crore total beneficiaries (account-holders) with total account balance of more than ₹2 lakh crore.
  • Direct Benefit Transfers: The PMJDY has enabled the direct transfer of government benefits, subsidies, and welfare payments directly into the beneficiaries' bank accounts. This has improved the targeting and delivery of government schemes, reducing leakages and improving transparency.
  • Women's Financial Inclusion: The PMJDY has a specific focus on promoting women's financial inclusion, with over 55% of the Jan Dhan accounts being held by women.
  • Financial Literacy and Awareness: The PMJDY has incorporated financial literacy and awareness campaigns to educate the beneficiaries on the use of their bank accounts and various financial services.

India's first Sustainable Aviation Fuel Plant

Context: Indian Oil's Panipat refinery has received ICAO ISCC CORSIA certification for producing sustainable aviation fuel (SAF) from used cooking oil. became the first company in India 

Relevance of the topic:

Prelims: India’s indicative blending Target for SAF; CORSIA framework.

Mains: Sustainable Aviation Fuel: Advantages & Challenges. 

India's first Sustainable Aviation Fuel Plant

  • IOC will have the capacity to produce 35,000 tonnes per year of SAF from used cooking oil by the end of 2025. 
  • Feedstock: The used cooking oil will be sourced by engaging aggregators from large hotel chains, restaurants, and sweets and snacks majors, which is otherwise discarded after use. 
  • The capacity (35,000 tonnes per year) will be sufficient to meet the country’s 1% SAF blending requirement (for international flights) by 2027. 

IOC has become the first company in India to receive the ISCC CORSIA certification for SAF production at its Panipat refinery in Haryana. 

ISCC CORSIA Certification System:  

  • ISCC CORSIA is a certification system for compliance with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) criteria for SAF. It is a prerequisite for commercial SAF production. 
  • The certification sets a benchmark for other domestic refiners and industry players to scale up SAF production.

About Sustainable Aviation Fuel (SAF)

  • SAF is a biofuel that is produced from sustainable feedstocks. SAF has chemistry and properties similar to conventional aviation turbine fuel (ATF) or jet fuel (derived from crude oil) but with a smaller carbon footprint. 
  • It can be blended at different levels with limits between 10% and 50%, depending on the feedstock and how the fuel is produced. 
  • Sources of SAF: 
    • Oil seeds, other fats, oils, and greases
    • Agricultural residues, Forestry residues, Wood mill waste
    • Municipal solid waste streams, Wet wastes (manures, wastewater treatment sludge)
    • It can also be produced synthetically via a process that captures carbon directly from the air. 

Advantages of SAF: 

  • Engine compatibility: Existing aircraft engines can easily use the SAF-ATF blend (up to 50% blend) without modification. 
  • Fewer greenhouse gas emissions: It is estimated that SAF alone is likely to account for over 60% of the global aviation industry’s decarbonisation efforts.
  • Sustainable: Raw feedstock does not compete with food crops or water supplies, or is responsible for forest degradation. 
  • More flexibility: SAF is a replacement for conventional jet fuel, allowing for multiple products from various feedstocks and production technologies.

Challenges Associated with SAF:  

  • SAF is about three-four times more expensive than the price of regular jet fuel.
  • SAF success will require using a greater diversity of feedstock and production methods.

Moreover, collection of SAF would be a challenge. While it is easy to collect from large hotel chains, a solution needs to be found for collection from small users, including households. 

Key Facts:

  • International Civil Aviation Organisation's (ICAO) is dedicated to reducing carbon emissions from international civil aviation.
  • To mitigate the environmental impact of aviation, ICAO has set several aspirational goals:
    1. Two Percent Annual Fuel Efficiency Improvement: Targeted through 2050.
    2. Carbon Neutral Growth: Striving for no net increase in carbon dioxide (CO2) emissions from international aviation. 
    3. Net Zero CO2 Emissions from aviation by 2050. 
  • These goals are encompassed under two major initiatives: Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and the Long-Term Aspirational Goals (LTAG). 

CORSIA Implementation Phases: 

CORSIA will be implemented in three phases:

  1. Pilot Phase (2021-2023): Voluntary participation by States.
  2. First Phase (2024-2026): Also voluntary, but with expanded participation.
  3. Second Phase (2027 onwards): Mandatory for all ICAO member states, including India.

India’s indicative blending Target for SAF: 

  • In line with the CORSIA framework, India’s National Biofuel Coordination Committee (NBCC) has set the initial indicative targets for blending of SAF with jet fuel 2027 onwards, starting with international flights. The indicative targets are:
    • 1% SAF indicative blending target in 2027 (Initially for International flights)
    • 2% SAF blending target in 2028 (Initially for International flights)
    • 5% by 2030. 

The success of SAF will require using a greater diversity of feedstock and production methods. This includes areas such as investing in carbon offset programmes and the diversification of SAF feedstocks. 

IOC is also working to set up units based on the alcohol-to-jet pathway, which involves using ethanol as a feedstock to make SAF. 

India’s Fisheries Sector on the Rise

Context: As per the latest government data, India’s fisheries sector has experienced a significant growth and contributes approximately 8% to global fish production.

Relevance of the Topic:Mains: Fisheries Sector in India: Present status; Challenges; Govt. schemes. 

Fisheries Sector in India

With a vast coastline and an Exclusive Economic Zone (EEZ) of 2.02 million square kilometres, India boasts of rich marine resources. India is the second largest fish producing country with around 8% share in global fish production.

  • Present status: In the five year period between 2019-20 to 2023-24:
    • India’s fisheries sector has achieved record production of over 184 lakh tonnes (lt) in FY24 from 141 lt in FY20 (nearly a 30% growth).
    • Fisheries exports from India increased to ₹60,500 crore in FY24.
    • Increase in per capita fish consumption from 5-6 kg to 12-13 kg in FY24.
    • Aquaculture productivity increased from 3 tonnes per hectare to 4.7 tonnes per hectare.
  • Increased investment: In the last 10 years, the government has made a cumulative investment in the fisheries and aquaculture sector of over ₹38,500 crores through various programmes and initiatives. 

Constraints in the growth of Fisheries Sector

  • Overexploitation of fish stocks due to increased demand for seafood. Additionally, seasonal nature of fishing operations, depleted stocks in natural waters, use of obsolete technology for harvesting coupled with low capital infusion threatens the livelihoods of fishing communities and overall health of marine ecosystems.
  • Illegal, Unreported, and Unregulated (IUU) Fishing: IUU fishing practices contribute to overfishing and undermine efforts to manage fisheries sustainably. Lack of effective monitoring and enforcement mechanisms exacerbates this issue.
  • Inadequate infrastructure including lack of proper storage, transportation, and processing facilities, hinders the efficiency of the supply chain. This can lead to post-harvest losses and affect the quality of seafood products.
  • Pollution including industrial runoff, untreated sewage, and plastic waste, poses a threat to aquatic ecosystems.
  • Changing climate patterns impact fish habitats, migration routes, and breeding grounds. This affects fish populations and can result in shifts in the distribution of species, impacting the traditional fishing patterns of communities.
  • Limited access to modern fishing technologies and practices hampers the efficiency and productivity of the fishing industry. The adoption of sustainable and technologically advanced methods is crucial for long-term viability.
  • Ineffective fisheries management, including poorly enforced regulations and a lack of participatory approaches involving local communities, contributes to overfishing and resource degradation.
  • Social and Economic challenges faced by fishing communities such as poverty, lack of education, and limited access to healthcare.

Government Schemes for supporting the growth of Fisheries Sector:

  • Blue Revolution Scheme: Launched in FY16 with a central outlay of Rs 3000 crores for 5 years. It focused mainly on increasing fisheries production and productivity from aquaculture and fisheries resources, both inland and marine.
  • National Policy on Marine Fisheries 2017: The policy guides the conservation and management of India’s marine fishery resources. It places strong emphasis on sustainability as the core principle for all marine fisheries actions.
  • Pradhan Mantri Matsya Sampada Yojana (PMMSY): Approved with a total estimated investment of Rs. 20,050 crores for 5 years from FY 2020-25. Extended till FY26. It aims to address critical gaps in the fisheries value chain from fish production, productivity and quality to technology, post-harvest infrastructure and marketing. 
  • Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana: Central Sector Sub-scheme under PMMSY for 4 years from FY 2024-27. It intends to address inherent weaknesses and bring in institutional reforms to the sector through identified financial and technological interventions. 
  • Technological Interventions:
    • GIS-Based Resource Mapping: Implementation of Geographic Information System (GIS) technology for mapping marine fish landing centers and fishing grounds, aiding in effective resource management.
    • Satellite Technology Integration: National Rollout Plan for Vessel Communication and Support System, application of Oceansat, Potential Fishing Zones (PFZ) etc., undertaken by the Department of Fisheries.
image 14

Also Read: PMMSY: bridging gaps in the fisheries sector 

Strategies to be adopted to boost Blue Revolution: 

  • Horizontal Expansion in untapped areas like Brackish aquaculture, cold water fisheries, Pond aquaculture, Reservoirs, canals, ornamental fisheries, Recreational fisheries.
  • Vertical Expansion through diversification of culture species; Integrated farming system; rice-cum-fish culture system; wastewater aquaculture system, Organic aquaculture.
  • Restoration of natural productivity and conservation of indigenous fisheries resources through ecosystem restoration to boost riverine fisheries. 
  • Address stagnation in Marine fisheries through deep sea fishing, Mariculture, open-sea cage farming etc.
  • Upgradation of fishing fleet. Organise fishermen into FPOs and fishing village communities into VPOs to reap economies of scale and promote value-addition
  • Address problems of seed, feed and health.
  • Enhancing extension through Sagar Mitras.
  • Address technical and managerial gaps in shrimp farming through Foreign Direct Investment. 
  • Development of fisheries post-harvest infrastructure especially modern markets, cold storages, processing plants etc. through Public Private Partnership. 
  • E-markets and e-trading of fish and fish products will be encouraged and promoted.
  • Ecological certification of fisheries to boost exports. 

Cabinet gives approval to four new Semiconductor Plants

Context: The Union Cabinet has approved four new projects under the India Semiconductor Mission (ISM). Two of the projects will be in Bhubaneswar in Odisha, and one each will be in Punjab and Andhra Pradesh.

Relevance of the Topic: Prelims: India’s efforts towards semiconductor self-reliance.

Four new Semiconductor Plants

  • The cumulative value of the new projects is ₹4,594 crore. This brings the total number of projects under the India Semiconductor Mission to 10. 

Key details about the four new projects: 

1. Silicon Carbide integrated facility in Bhubaneswar, Odisha:

  • SicSem Pvt Ltd will establish an integrated facility of Silicon Carbide (SiC) based Compound Semiconductors. This will be the 1st commercial compound fab in the country. 
  • The project proposes to manufacture Silicon Carbide devices. This compound semiconductor fab will have an annual capacity of 60,000 wafers and packaging capacity of 96 million units. 
  • The proposed products will have applications in Missiles, Defence equipment, Electric Vehicles (EVs), Railway, Fast Chargers, Data Centre racks, Consumer Appliances, and Solar Power Inverters.

Silicon Carbide:

  • Silicon carbide (also known as SiC) is a semiconductor base material that consists of pure silicon and pure carbon. 
  • SiC can be doped with nitrogen or phosphorus to form an n-type semiconductor or can be doped with beryllium, boron, aluminum, or gallium to form a p-type semiconductor.
  • SiC devices offer advantages such as higher power density, reduced cooling requirements and lower overall system cost.

2. Vertically integrated advanced packaging and embedded glass substrate unit in Bhubaneshwar, Odisha:  

  • 3D Glass Solutions Inc. will bring world’s most advanced packaging technology to India. 
  • Planned capacity of this unit will be approximately 69,600 glass panel substrates, 50 million assembled units, and 13,200 3D Heterogeneous Integration (3DHI) modules per annum. 
  • The products will have significant applications in defence, high-performance computing, artificial intelligence, RF and automotive, photonics and co-packaged optics etc.

3. Semiconductor manufacturing unit in Andhra Pradesh: 

  • Advanced System in Package  (ASIP) Technologies will set up a semiconductor manufacturing unit with an annual capacity of 96 Million units.
  • The products will find applications in mobile phones, set-top boxes, automobile applications, and other electronic products.

4.  Semiconductor manufacturing facility at Mohali, Punjab:

  • Continental Device India Pvt Limited will expand its discrete semiconductor manufacturing facility. 
  • The proposed facility will manufacture high-power discrete semiconductor devices such as MOSFETs, IGBTs, Schottky Bypass Diodes, and transistors, both in Silicon and Silicon Carbide.

About India Semiconductor Mission

  • ISM is a strategic initiative to establish a robust semiconductor and display ecosystem in the country. It seeks to position India as a global hub for electronics manufacturing and chip design.
  • Launched: 2021
  • Budget outlay: ₹76,000 crores
  • Implemented by: Ministry of Electronics and Information Technology (MeitY)
  • Incentives: Financial incentives up to 50% of the project cost are provided to companies involved in Semiconductor Fabs, Display Fabs, Assembly, Testing, Marking, and Packaging (ATMP/OSAT) units, Semiconductor Design.

Previous Projects approved under India Semiconductor Mission: 

  • Earlier, six major projects have been approved under the India Semiconductor Mission. Already five semiconductor units are in advanced stages of construction. 
  • Advanced 7 nm (nanometre), 5 nm and 3 nm chips are being designed in India. 
  • The first chip from one of the previous six units is expected to be rolled out by the end of 2025. 
Company / Joint Venture Location 
Micron Sanand, Gujarat 
Tata Electronics + PSMC (Taiwan)Dholera, Gujarat 
Tata Semiconductor Assembly & Test (TSAT)Morigaon, Assam
CG Power + Renesas (Japan) + Stars Microelectronics (Thailand)Sanand, Gujarat
Suchi SemiconSurat, Gujarat
HCL + Foxconn (Taiwan)Jewar, Uttar Pradesh

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

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