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ISRO’s Next Generation Launch Vehicle

Context: The Union Cabinet has approved the development of the Next Generation Launch Vehicle (NGLV) in September 2024. This initiative aims to enhance India's space capabilities with a focus on human spaceflight and lunar missions by 2040. 

Relevance of the Topic: Prelims: Key facts about Next Generation Launch Vehicle.  

About Next Generation Launch Vehicle (NGLV)

  • Aim: To develop a new generation of human rated launch vehicles with high payload capability & reusability. 
  • NGLV will undergo three developmental flights (D1, D2, and D3), with a target completion timeline of 96 months (eight years). Completion is expected by 2032. 
  • A total budget of ₹8,240 crores has been approved for the program, covering development costs, three test flights etc. 
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Specifications of NGLV: 

  • NGLV is a three-stage partially reusable Heavy-lift launch vehicle, currently under development by the Indian Space Research Organisation (ISRO).
  • Reusability: It will have a reusable first stage, which would be utilised 15 to 20 times, to make the launches more affordable.
  • Length: NGLV is projected to have a liftoff mass of 1,000 tons and a height of 91 meters, significantly larger than the 43-meter LVM3. 
  • Fuel: NGLV will have semi-cryogenic propulsion (refined kerosene as fuel with liquid oxygen (LOX) as oxidiser) for the booster stages. 
  • Maximum payload capability: 30 tonnes to Low Earth Orbit (LEO).
    • Currently, ISRO has achieved self-reliance in launching satellites through operational vehicles like PSLV, GSLV, LVM3, and SSLV.
    • LVM3 has a maximum payload capacity of 10 tonnes to LEO and 4 tonnes to Geo-Synchronous Transfer Orbit (GTO).
    • NGLV will have 3 fold payload capacity compared to LVM3, while its cost will be only 1.5 times more.

Significance:

  • NGLV will offer higher payload capacity and will have modular green propulsion systems.
  • NGLV will allow for multiple reuses, reducing operational costs and increasing operational efficiency of the booster.
  • NGLV's development will support both national and commercial missions, including:
    • Deployment of communication and earth observation satellite constellations to LEO, benefiting India's entire space ecosystem.
    • Bharatiya Antariksh Station, Indian crewed lunar missions by 2040 and other interplanetary exploration. 

Read More: ISRO’s Satellite Launch Vehicles 

National Critical Mineral Mission

Context: The Union Cabinet has approved setting up of National Critical Minerals Mission (NCMM) with a budgetary outlay of Rs 16,300 crore over seven years.

Relevance of the topic:

Prelims: Critical Minerals, National Critical Minerals Mission, International Collaborations for Critical Minerals

Mains: Critical Minerals- Govt. Initiatives

About National Critical Minerals Mission (NCCM)

  • The National Critical Mineral Mission will be implemented under the Ministry of Mines for a period from FY 2024-25 to 2030-31.
  • The mission will have a financial outlay of ₹16,300 crore and an additional funding support of ₹18,000 crore will be raised from different PSUs. 
  • Nodal Ministry: Ministry of Mines
  • Objectives of NCCM:
    • To secure India’s critical mineral supply chain.
    • To ensure mineral availability from domestic and foreign sources. 
    • To strengthen the value chains by enhancing technological, regulatory, and financial ecosystems.
    • To foster innovation, skill development, and global competitiveness in mineral exploration, mining, beneficiation, processing, and recycling.
  • Critical Minerals: 
    • Apart from lithium, there are 23 other critical and strategically important minerals that have been identified. 
    • These include vanadium, tungsten, molybdenum, platinum group of elements, rare earth elements and potash etc. 
  • Governance Framework:
    • Mission Secretariat to be led by the Joint Secretary. The mission will also have a director, geologists, mineral economists and professionals from the mining industry, mineral processing industry and finance.
    • Empowered Committee on Critical Minerals to coordinate activities.
      • Chaired by: Cabinet Secretary 
      • Members from relevant stakeholder ministries. 
  • Present status: 
    • India is a net importer of most critical minerals on account of their nil or limited reserve/production in the country.
    • The net import bill for critical minerals (excluding lithium) for FY24, was approximately ₹30,000 crore, with net phosphorous imports being the highest at ₹12,648 crore. 
    • Rare earth elements were the only segment in which India was a net exporter. 
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Components of NCCM

  • Increasing Domestic Critical Minerals Production:
    • Expanding exploration and mining activities
    • Mining in offshore areas
    • Fast-track regulatory approval process for domestic critical minerals exploration and mining projects 
    • Exploration Licences (EL) for encouraging private participation in exploration activities.
    • Formation of Critical Mineral Processing Parks.
  • Acquisition of Critical Mineral Assets abroad:
    • Government will earmark funds to support Critical Minerals Exploration Activities outside India. 
    • Motivate Central PSUs and encourage private sector companies to allocate funds for the acquisition of critical mineral assets overseas. 
    • The Empowered Committee will give broad directions and inter-ministerial support to PSUs and stakeholders to acquire critical mineral assets abroad.
    • Ministry of Mines to work closely with the Ministry of External Affairs (MEA) to engage with the regulators from the resource country to support the development of mineral evacuation infrastructure.
  • Recycling of Critical Minerals:
    • Incentive scheme for setting up minerals recycling
    • Formation of Recycling Advisory Group on Critical Minerals
  • Trade and Markets:
    • Enhance Trade with Resource-Endowed Countries
    • Eliminate Import Duty on Critical Minerals
    • Develop National Critical Mineral Stockpile/Reserves
  • Scientific Research & Technological Advancement:
    • Promoting Research and Innovation in Critical Minerals 
    • Establishing a Center of Excellence (COE) on Critical Minerals 
    • Global Collaboration on R&D
  • Human Resource Development:
    • Promoting Expertise and Skilled Workforce in Critical Minerals 
    • Develop Targeted Degree Programs, Scholarships, and Internships 
    • Capacity Building Programs for Resource-Endowed Countries
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Rationale behind NCCM

  • Importance of Critical Minerals:
    • Critical minerals are those minerals essential for economic development and national security.
    • Lack of availability of these minerals or even concentration of their existence, extraction or processing in few geographical locations may lead to supply chain vulnerability and disruption.
  • Global Context:
    • China’s restrictions on certain critical minerals, Russia-Ukraine War, and other issues highlight the fragility of critical mineral supply and the need for diversifying sources.
  • Meeting India’s climate commitments:
    • Reducing emissions intensity of GDP by 45% by 2030, compared to 2005 levels. 
    • Achieving 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030. 
    • Achieving the target of net zero emissions by 2070. 

International Collaborations for Critical Minerals

  • Mineral Security Partnership (MSP):
    • Collaboration of 14 countries (including India) and EU to catalyse public and private investment in critical mineral supply-chains globally.
  • Initiative on Critical and Emerging Technology (iCET):
    • Announced in May 2022. 
    • 12 Projects prepared for taking up under iCET by involving GSI, IBM and IREL along with concerned institutes/ organisations in the USA.
  • Indo-Pacific Economic Framework (IPEF): 
    • US led initiative bringing together 14 partner countries, launched in May 2022.
    • 2024 Dialogue highlighted India’s initiatives to develop the critical mineral value chain and auctioning of critical and strategic mineral blocks in India.
  • Quadrilateral Security Dialogue (QUAD): 
    • Strategic security forum involves- India, USA, Australia and Japan.
    • At the 2023 leaders’ summit, partners announced a Quad statement of “Principles on Clean Energy Supply Chains in the Indo-Pacific. 
    • Quad partners have set up the Quad Investors Network (QIN), with a working group focusing on clean energy and critical minerals.
  • India-UK Technology and Security Initiative (TSI): 
    • Launched in July 2024. 
    • The Ministry of Mines is taking up research projects related to Critical Minerals.  
  • Bilateral MoUs:
    • The Ministry of Mines entered into MoUs with Governments of various countries such as Australia, Argentina, Chile etc.

Read More: China tops list of Critical Mineral suppliers to India 

How does the nature of Fiscal Expenditure impact Growth?

Context: The provisional estimates of Gross Domestic Product (GDP) highlights that the Indian economy is going through a rough patch. The underlying growth rate is lower than what was expected and estimated by the government. 

This slowdown is despite the rising capital expenditure in various budgets. An increase in revenue expenditure, particularly in the social sector, can help reverse the current growth decline happening in India.

Relevance of the Topic: Mains: Analysis of fiscal expenditure. 

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How does the nature of Fiscal Expenditure impact Growth?

1. Impact of Revenue Expenditure: 

  • Those at the lower end of the income spectrum have a higher propensity to consume as compared to the richest. 
  • If state spending tilts in favour of the working class, the income and employment multiplier effects of such spending would be much larger.
  • For example, consider the government is spending ₹100 as NREGA wages or pension to the elderly.
    • The entire ₹100 can be used to increase workers’ consumption demand. 
    • This increase in demand, say on food and clothes, generates income for those employed in producing these commodities. This creates a multiplier effect in the economy.
    • Also, the import component is negligible. The whole amount will be used up domestically.

2. Impact of Capital Expenditure:

  • For example, consider the government is spending ₹100 in commissioning a large scale dam/nuclear project.
    • Here, only a part of ₹100 can be spent as wages. This reduces the rate of increase in consumption demand from workers’ class, thus reducing the multiplier effect.
    • Also, there is a likelihood of a greater leakage of demand to the rest of the world in the form of higher imports (like heavy machinery required for a dam or a nuclear reactor). 
    • So, the domestic component of this multiplier might be even lower.

3. Income Transfers:

  • Direct income transfers (whether in cash or kind) to the workers at the lower income group, stimulate demand for mass consumption of goods.
  • A mere change in the composition of government expenditure in favour of such transfers, creates extra demand. 

4. Welfare-based legislations:

  • During 2004-2011, the government introduced a major welfare scheme- NREGA and fixed its wages higher than the prevailing market wages. 
  • This generated additional jobs as well as set a floor for rural wages. This rise in rural wages pushed up wages for casual unskilled workers.

5. Social services & Development expenditures:

  • There was a sharp rise in the share of social services expenditure as well as development expenditures out of the total expenditure of the Union government during 2004-2011.
    • Developmental expenditure: expenditure on economic as well as social services. Includes the spending on agriculture and rural development.
    • Social sector expenditure: only includes the direct social sector spending such as education, health and welfare programmes.
  • This change in the nature of fiscal spending had a significant impact on consumption, across different categories of commodities, for the bottom 80% of the population.
image 232
image 230

Reasons for the Present decline in growth: 

  • Exclusive focus on Capital expenditure: While the government has acknowledged the slowdown and the lack of private investment, its response has been to focus on capital expenditure. This was done even as the share of fiscal expenditure (as a % of GDP) was falling. 
image 231
  • Unmet expectations in private investment: The exclusive focus on capex was done with the expectation that this would crowd-in private investment. But, the corporate sector has not responded either to this or to the tax cuts from 30% to 22% in 2019.
  • Stagnant Private Consumption: Under conditions of slowdown or lack of demand, investment responds more to the level of activity than to cost considerations. If the existing factories are not running to capacity, the firms would not invest more even if they are flush with funds (in the form of post-tax profits) or have access to cheap credit.

Way Forward

  • Rise in the share of revenue expenditure:
    • An increase in revenue expenditure, particularly in the social sector, would result in a virtuous cycle of higher income for the workers.
    • This will further lead to higher income and employment multipliers, which may kick-start private investment as well.
  • Shift in the nature of capital expenditure: Capital expenditure must be focused on labour intensive projects that have a higher multiplier. E.g., Affordable housing projects, rural infrastructure projects. 
  • Implementation of direct income transfer schemes for low income groups would reduce income inequality and boost consumption expenditure. 

SEBI proposes ‘When listed Platform’

Context: The Securities and Exchange Board of India (SEBI)  is introducing a "when-listed" platform to reduce grey market activity.

Relevance of the Topic:Prelims: Terms related to Capital Market, Stock Exchanges

What is a Grey Market?

  • A grey market is an unofficial market for financial securities. Grey market trading generally occurs when a stock that has been suspended from trades off the market, or when new securities are bought and sold before official trading begins. 
  • Grey market enables the issuer and underwriters to gauge demand for a new offering because it is a “when issued” market (i.e., it trades securities that will be offered in the very near future). 
  • Grey market is an unofficial & not regulated one but is not illegal.
  • SEBI is concerned about the grey market because:
    •  It involves high-risk, unregulated transactions
    • It often misleads retail investors into making decisions based on price premiums that may not reflect the true value of the stock.
image 228

New ‘When-listed’ platform

  • Aim: To reduce ‘grey market activity’ in companies’ stocks. 
  • How does it work?
    • This platform will allow trading of shares between the allotment of shares after an Initial Public Offering (IPO) and the official listing on stock exchanges. 
    • It will provide a regulated environment for trading unlisted shares during this interim period.
  • SEBI is trying to address the issue of grey market with the "when-listed" platform.
    • Currently, investors engage in unofficial trading (kerb trading) during this period, which SEBI wants to regulate. 
    • The "when-listed" platform will formalise this process and offer a safer, organized option for investors.
  • Benefit to Investors:
    • Provide investors with a secure, regulated environment to trade shares they have been allotted in an IPO, even before the shares are officially listed.
    • Ensures transparency and reduces the risks associated with grey market trading. 
    • Investors can sell their allotted shares in a legitimate, monitored market, providing them with a safer and more reliable option.

Understanding the formulation of Union Budget

Context: The Union Budget will be tabled in Parliament by the Finance Minister on 1st February, 2025. It is likely to address concerns around growth, inflation and spending.

Relevance of the Topic:Prelims: Key concepts related to Union Budget- Components; Deficits- Fiscal, Revenue, Primary deficit. 

Union Budget in India

  • The budget is the government’s blueprint on expenditure, taxes it plans to levy, and other transactions which affect the economy and lives of citizens.
  • Constitutional framework: According to Article 112 of the Indian Constitution, the Union Budget of a year is referred to as the Annual Financial Statement (AFS).
  • Formulation: The Budget Division of the Department of Economic Affairs in the Finance Ministry is the nodal body responsible for preparing the Budget.

Components of Budget

  • There are three major components— expenditure, receipts and deficit indicators. Depending on the manner in which they are defined, there can be many classifications and indicators of expenditure, receipts and deficits.










Expenditure		1. Based on Asset Creation and Liability Reduction:

Capital Expenditure: Incurred with the purpose of increasing assets of a durable nature or of reducing recurring liabilities.
Example: Expenditure incurred for constructing new schools or new hospitals. 

Revenue Expenditure: involves any expenditure that does not add to assets or reduce liabilities.
Example: Expenditure on the payment of wages and salaries, subsidies or interest payments.

2. Based on Sectoral Impact:Expenditure is also classified into:
General services: Includes administrative expenses, defence, interest payments etc.  

Economic services: Includes expenditure on transport, communication, rural development, agricultural and allied sectors.Social services: Includes expenditure on the social sector including education or health. 

Grants-in-aid and contribution.The sum of expenditure on economic and social services together form the development expenditure. 







Receipts		Receipts of the Government have three components:
-Revenue receipts
-Non-debt capital receipts
- Debt-creating capital receipts.

Revenue receipts involve receipts that are not associated with increase in liabilities and comprise revenue from taxes and non-tax sources.

Non-debt receipts are part of capital receipts that do not generate additional liabilities. 
Example: Recovery of loans and proceeds from disinvestment.
  
Debt-creating capital receipts involve higher liabilities and future payment commitments of the Government.






Fiscal Deficit		Fiscal deficit is the difference between total expenditure and the sum of revenue receipts and non-debt receipts. 

It indicates how much the Government is spending in net terms.

Positive fiscal deficits indicate the amount of expenditure over and above revenue and non-debt receipts. It needs to be financed by a debt-creating capital receipt.

Primary deficit is the difference between fiscal deficit and interest payments.

Revenue deficit is derived by deducting capital expenditure from fiscal deficits.

Implications of Budget on Economy

  • Impact on Aggregate Demand:
    • Expenditure: All Government expenditure generates aggregate demand in the economy, since it involves purchase of private goods and services by the Government sector. 
    • Receipts: All tax and non-tax revenue reduces net income of the private sector, and thereby leads to reduction in private and aggregate demand. 
    • Reducing aggregate demand: Following cases indicates the Government’s policy to reduce aggregate demand:
      • Reduction in expenditure-GDP ratio 
      • Increase in revenue receipt-GDP ratio 
      • Reduction in fiscal deficit-GDP and primary deficit-GDP ratios.
    • Increasing aggregate demand: Following cases indicates the Government’s policy to increase aggregate demand:
      • Increase in expenditure-GDP ratio 
      • Decrease in revenue receipt-GDP ratio 
      • Increase in fiscal deficit-GDP and primary deficit-GDP ratios
  • Impact on Income Distribution:
    • Revenue expenditure such as employment guarantee schemes or food subsidies can directly boost the income of the poor. 
    • Concession in corporate tax may directly and positively affect corporate incomes. 

What are Fiscal rules?

  • Fiscal rules provide specific policy targets on the basis of which fiscal policy is formed.
  • Fiscal policy refers to the use of government spending and tax policies to influence economic conditions, especially macroeconomic conditions, including aggregate demand for goods and services, employment, inflation, and economic growth.
  • Policy targets can be met by using different policy instruments.
    • There exists no unique fiscal rule that is applied to all countries. 
    • Rather, policy targets are sensitive to the nature of economic theory and depend on the specificity of an economy.

Fiscal Rules in India

  • India’s present fiscal rule is guided by the recommendations of the N.K. Singh Committee Report. 
  • Allowing for some deviations under exceptional times, it has three policy targets:
    • Stock Target: maintaining a specific level of debt-GDP ratio
      • The total amount of debt a country has compared to its GDP.
      • This shows how much a country owes to what it produces.
      • If debt is too high, it can lead to financial instability.
    • Flow Target: Fiscal deficit-GDP ratio
      • The gap between how much the government spends and how much it earns in a year, compared to its GDP.
      • A high fiscal deficit means the government is borrowing more to cover its expenses.
    • Composition Target: Revenue deficit-GDP ratio
      • The part of the fiscal deficit that comes from borrowing for regular expenses instead of investments.
  • Governments can manage their finances in 2 ways:
    • Changing tax rates
    • Adjusting spending
  • However, in India, tax-rates within the existing policy framework are determined independent of the expenditure requirement of the economy. So, when the government needs to meet fiscal targets, it mainly adjusts its spending instead of changing taxes.

How India’s fiscal rules affect fiscal policy?

  • Spending limits: Independent of the extent of expenditure needed to stimulate the economy or boost labour income, existing fiscal rules provide a cap on expenditure by imposing the three policy targets.
  • Rigid Targets: Under any situation when the debt-ratio or deficit ratio is greater than the targeted level, expenditure is adjusted in order to meet the policy targets.  Thus, independent of the state of the economy and the need for expansionary fiscal policy, existing policy targets may lead the Government to reduce expenditure.

In the midst of the inadequacies of fiscal policy to address the contemporary challenges of unemployment and low output growth rate, the nature and objective of fiscal rules in India would have to be re-examined. 

Impact of classifying Denotified Tribes

Context: For the first time, the Anthropological Survey of India (AnSI) and Tribal Research Institutes (TRI) conducted a comprehensive classification of 268 denotified, semi-nomadic, and nomadic tribes across India after three years of research and study. These tribes were previously thought to have never been classified systematically.

Relevance of the topic:

Prelims: Key facts about De-notified Tribes.

Mains: Need for categorisation of De-notified Tribes.

Key Findings

  • 179 communities were recommended for inclusion in the Scheduled Castes (SC), Scheduled Tribes (ST), or Other Backward Classes (OBC) lists.
  • 85 communities are being recommended for classification for the first time ever.
  • 63 communities were found to be “not traceable,” possibly due to:
    • Assimilation into larger communities.
    • Migration to different states.
    • Changes in community names.

Why was the Study needed?

  • Post-Independence, the Criminal Tribes Act of 1924 was repealed in August 1949, leading to the denotification of "criminal" tribes.
    • Despite this, efforts to classify these communities have remained incomplete.
    • This has led to their exclusion from welfare schemes for the SCs and STs.

Who are de-notified tribes?

  • The term 'De-notified Tribes' stands for all those communities which were once notified under the Criminal Tribes Acts, enforced by the British government between 1871 and 1971. These Acts were repealed by the independent Indian Government in 1952, and these communities were "Denotified". A few of these communities which were listed as de-notified were also nomadic. 
  • A National Commission for De-notified, Nomadic and Semi-Nomadic Tribes (NCDNT) was constituted in 2006. It was headed by Balkrishna Sidram Renke and submitted its report in June 2008. The Renke commission estimated their population at around 10.74 crore based on Census 2001. 
  • Not all of these tribes are categorised under SC, ST and OBC. The standing committee report in Parliament has cited that 269 DNT communities are not covered under any reserved categories and thus face exclusion from benefits.
  • Previous attempts at classification by various commissions: Several commissions tried to classify denotified, semi-nomadic, and nomadic tribes:
    • First Backward Classes Commission (Kaka Kalelkar, 1955)
    • Lokur Committee (1965)
    • Mandal Commission (1980)
    • Renke Commission (2008)
    • Idate Commission (2017)
    • However, none succeeded in identifying all communities comprehensively.
  • Idate Commission's observations:
    • In its 2017 report, the Idate Commission listed over 1,200 denotified, semi-nomadic, and nomadic tribes across India. It also highlighted 267 communities that were never classified.
    • Commission further urged for immediate completion of the classification process to ensure welfare benefits for these communities.
  • Government response:
    • A Special Committee was constituted by the Prime Minister’s Office in February 2019 chaired by the Vice Chairperson of NITI Aayog, the committee included:
      1. Bhiku Ramji Idate (Idate Commission).
      2. Dr. J.K. Bajaj (Centre for Policy Studies).
      3. Director-General of AnSI.
    • The AnSI and TRIs were tasked with carrying out the classification study, the report of which has been submitted recently.

Need for Categorisation

  • Correct classification of communities: Activists have highlighted that having a lack of a unified and complete list hampers efforts to organise these communities. The present classifications contain inclusion and exclusion errors and sometimes leave out hundreds of communities altogether. 
  • Access to welfare schemes: Delays in categorisation prevent these communities from accessing the welfare schemes meant for SCs, STs, and OBCs. The Parliamentary Standing Committee on Social Justice and Empowerment (2022) flagged this issue, emphasising the urgency of the classification process. 
  • Correcting historical errors: Misclassification of tribes as castes and vice versa during colonial censuses created discrepancies leading to protests.
  • Anthropological perspective: Using an anthropological lens, present classifications differ from political or census-based approaches. This ensures accurate representation of social and cultural identities which can be used to frame better and relevant schemes and plan development parameters.

Once the classification is finalised, state governments can initiate processes for inclusion and extend welfare benefits to these communities.

Challenges and concerns

  • Political implications: Activists in states like Uttar Pradesh, Haryana, Madhya Pradesh, and Gujarat are debating the grounds and criteria for classification framework as it has implications for reservation policies.
  • Debate within the welfare board: Two main approaches have emerged within the Development and Welfare board for denotified communities:
    • Approach 1: Complete the classification into SC, ST, or OBC to enable these communities to access existing welfare schemes and reservations.
    • Approach 2: It advocates for a separate schedule in the Constitution specifically for denotified tribes, ensuring targeted benefits.

Way Forward

  • The Special Committee under the Vice Chairperson of NITI Aayog is scrutinising the AnSI and TRI report, based on it, the final report will be prepared for the Government.
  • Based on the report, the Government will decide on:
    • Approving the recommendations for inclusion in SC, ST, or OBC lists.
    • If required, initiating steps for the creation of a separate Constitutional schedule.
  • Based on the Government’s decision, appropriate measures will be taken to ensure:
    • Access to welfare schemes.
    • Correct classification of communities.
    • Addressing historical grievances.

Need for Substantive Equality in Child Marriage Laws

Context: The Prohibition of Child Marriage Act (PCMA), 2006 allows different timeframes for men and women to seek annulment of a child marriage, which reinforces the patriarchal notions.

Relevance of the topic:

Prelims: MCQ based on Prohibition of Child Marriage Act.

Mains: Detailed questions on lacunae in Prohibition of Child Marriage Act.

Issue of Child Marriage

  • Child marriage remains a significant social issue in India despite of legal prohibition. (102 million girls got married before age of 18 years: Census 2011)
  • There are various reasons of Child Marriage;
    • Patriarchy: The notion of patriarchy considers a girl child as a liability, leading to early marriage.
    • Social taboos: Many Indian societies consider the premarital sex as a taboo, leading to marriage children before achievement of adolescence.
    • Poverty and financial pressure: Poor families and ruralisation of poverty, especially in the agricultural societies, leads to dowry concerns often pushing parents to marry daughters at a younger age.
    • Safety concerns: Fear of sexual violence and lack of security infrastructure for women leads to the early marriage of girls.
    • Weak legal enforcement: Poor implementation of law and conflict with personal laws make it challenging to curb the issue of child marriage.
child marriage prohibition act

About Prohibition of Child Marriage Act 2006

  • The Government has passed the Prohibition of Child Marriage Act 2006, making child marriage illegal and criminalises it. 
  • The Act allows any party who got married as a child to seek annulment of the marriage, as long as the petition is filed within two years of attaining majority.
    • The ‘Child’ in PCMA means a girl below 18 years and a boy below 21 years of age.  
    • Women can annul marriage before attainment of 20 years of age, whereas, men can annul marriage before attainment of 23 years of age.
prohibition of child marriage act 2006

Issues in Prohibition of Child Marriage Act (PCMA) 2006

  • Limited scope: The Act only criminalises the child marriage but lacks the comprehensive approach to address roots causes like social customs, economic pressure and gender biases.
  • Legal contradictions: Various personal laws challenge and contradict the PCMA Act 2006. Eg; Muslim Personal laws allows marriage with attainment of puberty 
  • Biased law: The Act itself is biased against women as it allows annulment of marriage by boys at the age of 23 years while marriage annulment age for girls is less, bringing girls to a stage of disadvantage. 
  • Inconsistencies of law: Law is inconsistent as it allows a different age of marriage for boys (21) and girls (18) reinforcing gender inequality.

Way Forward

Suggestions for attaining Substantive Equality in Marriage Laws:

  • Uniform marriage age: The minimum age of women can be made at par with the males i.e., 21 years to address the deep rooted patriarchal conception in legal measures.
  • Increasing annulment age: If minimum marriage age of males and females can not be equated then, age of annulment can be made equal to enhance rights.

Other measures to reduce Child Marriage:

  • Strengthening law: Enforcing PCMA 2006 for stricter penalties and powers to override religious personal laws to avoid legal loopholes Eg; Karnataka (2017), the government amended laws to declare all child marriages void
  • Education reforms: Higher studies for the girls should be motivated to reduce child marriage. Eg; KIRAN initiative to increase women in STEM higher education 
  • Enhancing security: Enhancing women safety and security should be enhanced to reduce early marriage. Eg; Prevention of Sexual Harassment at workplace act and safety infrastructure like CCTV.
  • Rehabilitation: Providing immediate relief for the rehabilitation of child marriage. Eg; One Stop center to support child brides by offering shelter.

A substantive equality approach in reforming child marriage laws involves not only legal prohibition but also proactive measures to address the socio-economic factors that contribute to child marriage, thereby ensuring true equality and empowerment for young girls in India.

ASER Report 2024

Context: Pratham NGO has released Annual Status of Education Report (ASER) 2024, the annual report on the status of education in rural areas. According to the report, a total of 6,49,491 children in 17,997 villages across 605 rural districts in India were surveyed. 

Relevance of the Topic: Mains: Question based on ASER report and observations, challenges and suggestions for the education sector. 

Major Observations in ASER 2024: 

Major Observations in ASER 2024

1. Enrollment in pre-primary institutions (Age group 3-5 years):

  • Enhanced enrollment: Enrollment in pre-primary institutions increased from 68.1% in 2018 to 75.8% in 2022 to 77.4% in 2024
    • Gujarat, Maharashtra, Odisha, and Telangana have achieved near-universal enrollment for this age group.
    • Meghalaya and Uttar Pradesh have the highest proportion of 3-year-olds not enrolled anywhere (over 50%).
  • Dominance by Anganwadi: More than 75% children are enrolled in Anganwadi centres in these age groups.
  • Fluctuating Private institution enrollment: Approximately one-third of all 5-year-olds attend a private school or preschool in 2024. This figure was 37.3% in 2018, fell to 30.8% in 2022, and returned to 37.5% in 2024.

2. Elementary (age group 6-14 years): 

  • Near 100% enrollment: Enrollment ratio has stayed almost the same, from 98.4% in 2022 to 98.1% in 2024. Across all states, enrollment in this age group is above 95% in 2024.
  • Reduction in government school enrollment: The pandemic saw large increases in government school enrollments (72.9% in 2022). But by 2024, the all-India figure declined to 66.8% (dropped to the 2018 levels).
  • Improvement in learning outcome: 
    • The proportion of Std V children in government schools who can read a Std II level text fell from 44.2% in 2018 to 38.5% in 2022 and then recovered to 44.8% in 2024. 
    • The All-India figure for children in Std III who are able to at least do a numerical subtraction problem was 28.2% in 2018 and 25.9% in 2022. This figure has increased to 33.7% in 2024.
children 5-14 in school in ASER 2024
children enrolled in class 3 in ASER 2024

3. Digital literacy: 

  • Access to smartphones: Access to smartphones is close to universal among the 14-16 age group. Almost 90% of both girls and boys report having a smartphone at home. More than 80% report knowing how to use a smartphone.
  • Digital safety: Among children who used social media, 62% knew how to block or report a profile, 55.2% knew how to make a profile private, and 57.7% knew how to change a password.
  • School infrastructure:
    • Functional toilets: The fraction of schools with usable girls’ toilets increased from 66.4% in 2018 to 68.4% in 2022 to 72% in 2024.
    • Drinking water facilities: About 77.7% of schools have accessible drinking water facilities.
school facilities in ASER 2024

Factors behind the improved outcomes

  • Improved learning outcomes: The implementation of National Education policy and schemes like NIPUN Bharat has enhanced the learning outcomes. 
  • Higher enrollment: Improvement in the school infrastructure and improved health outcomes with POSHAN 2.0 scheme enhanced enrollment.
  • High smartphone access: Internet connectivity with affordable internet plans and online education guidelines like PRAGYATA has enhanced the penetration of online education.

Issues and challenges:

  • Regional discrepancy: There is a large variation among the states in enrollment and learning outcomes. E.g., Meghalaya and Uttar Pradesh have the highest proportion of 3-year-olds not enrolled anywhere (over 50%).
  • Gender gap: There is a gender gap in the digital skills and also the school infrastructure to address the needs of female students.
  • Balancing academics and responsibilities: Many youth juggle school with household chores or farm work, impacting the learning outcomes. 

Suggestive Measures: 

  • Enhancing budget: There should be an increment in the education budget of India making it 6% of the GDP.
  • Strengthening retention strategies: Implementing programs to encourage continued education among 15-16 year olds by inculcation of vocational training and free of cost career counseling. 
  • Continuous monitoring: Encouraging online mechanisms to monitor the attendance of teachers and students in real time to enhance effectiveness of educational interventions.

The ASER 2024 report underscores the progress made in India's rural education sector, particularly in government schools, while also highlighting areas that require focused attention to ensure equitable and quality education for all students. 

India-Indonesia Bilateral Relations

Context: Mr. Parbowo Subianto, the President of the Republic of Indonesia was the Chief guest in the Republic Day parade.

Relevance of the Topic:Mains: Bilateral Relations: India-Indonesia Relations. 

Key dimensions of India-Indonesia Relations

Key dimensions of India-Indonesia Relations
  • Civilisational and Cultural ties: India and Indonesia share deep-rooted civilisational links dating back to ancient maritime trade routes and cultural exchanges. For example, the Bali Yatra festival commemorates historical trade connections between India’s Odisha region and Bali, Indonesia.
    • Indonesia’s cultural elements, such as the Ramayana and Mahabharata, showcase Indian influence. 
    • Similarly, the spread of Hinduism and Buddhism in Indonesia emphasises on shared heritage.
  • Political and strategic cooperation: The Comprehensive Strategic Partnership (established in 2018) has focused on enhancing maritime security, regional stability, and geopolitical cooperation.
    • India and Indonesia conduct joint military exercises, such as the "Samudra Shakti" naval exercises, which strengthen defense coordination and ensure maritime safety in the Indian Ocean region.
    • Both countries cooperate closely in multilateral forums like ASEAN, G20, BRICS and the United Nations, highlighting their shared commitment to regional and global stability.
  • Economic cooperation: Bilateral trade has reached $29.4 billion in FY 2023-24, with the ambitious goal of increasing it to $50 billion by 2025. Key traded commodities include Indonesian palm oil, coal, and Indian pharmaceuticals and textiles.
    • India is the second-largest buyer of Indonesian coal, which supports India’s growing energy demands. 
    • There have been joint ventures in renewable energy, agriculture, and technology. For instance, Indian companies like Tata Power have invested in Indonesia’s coal and energy sectors.
  • Space cooperation: Both countries have collaborated on satellite technology and space exploration. For example, India’s ISRO assisted Indonesia in launching communication satellites, enhancing connectivity and disaster management capabilities in the region.
  • Health and education:
    • Health sector cooperation includes establishing healthcare facilities, hospital management training, and collaborative research on tropical diseases. 
    • Educational exchanges involve scholarships, such as those offered under the Indian Council for Cultural Relations (ICCR), and cultural programs to strengthen people-to-people ties. Indian universities attract Indonesian students pursuing higher studies.
  • Tourism:
    • Indonesia is a popular destination for Indian travelers, with over 650,000 Indian tourists visiting Bali in 2023 alone. 
    • Initiatives like the Visa-on-Arrival program facilitate seamless travel for Indians.
  • Role of the Indian diaspora:
    • The Indian diaspora in Indonesia plays a pivotal role in strengthening bilateral ties. Communities actively contribute to trade, banking, and education sectors. 
    • Events like Diwali celebrations by Indian expatriates promote cultural diplomacy and enhance goodwill.
  • Future outlook: The Comprehensive Strategic Partnership emphasises economic growth, maritime security, and regional cooperation as pillars of future engagement.
    • Indonesia’s strategic position in Southeast Asia makes it a cornerstone of India’s Act East Policy, ensuring sustained collaboration in the Indo-Pacific.

Areas of Future Collaboration

  • Research and Development (R&D) Partnerships:
    • India and Indonesia could collaborate on R&D to develop technologies that address specific renewable energy challenges. Innovations in energy storage, grid modernisation, and energy efficiency would benefit both nations. 
    • Indonesia could learn from India's advancements in solar technology, while India could benefit from Indonesia's expertise in geothermal exploration and bioenergy. 
  • Regional Energy Market Integration: 
    • Creating a regional energy market that connects Southeast Asia's and India's energy grids could facilitate shared renewable energy resources. 
    • Indonesia's interest in natural gas, particularly LNG, aligns with India's growing LNG demand.

India and Indonesia: Strategic Cooperation in the Indo-Pacific and beyond

Geopolitical importance of the Indo-Pacific:

  • Strategic location:  Indonesia’s position at the confluence of the Indian and Pacific Oceans places it at the heart of Indo-Pacific geopolitics. Its control over key sea routes like the Strait of Malacca gives Indonesia a pivotal role in global trade and regional stability. India's maritime interests align with Indonesia’s due to their shared concerns over securing critical waterways against external threats.
  • Geopolitical tensions: Rising tensions in the South China Sea highlight the need for collaboration to counterbalance external pressures and ensure freedom of navigation.

Military Strategy and Defence Cooperation: 

  • Defence Cooperation Agreement: During PM Modi’s visit in 2018, both countries concluded a Defence Cooperation Agreement. Indonesia is seeking to diversify its defence partnerships and India acquires salience here. India’s defence industry and defence exports are gaining traction with keen interest in the BrahMos system.
  • Joint Operations: Regular Coordinated Patrols (CORPAT) along the International Maritime Boundary Line (IMBL) emphasize operational synergy. The 43rd CORPAT (2024) symbolizes growing tactical alignment to counter piracy, smuggling, and illegal fishing.
  • Strategic framework: The 2018 "Shared Vision for Maritime Cooperation" serves as a roadmap for addressing evolving security threats. Collaborative efforts target both conventional (territorial disputes) and non-conventional (illegal fishing, trafficking) security challenges.
  • Naval strengthening: India and Indonesia focus on enhancing naval readiness to deter unlawful activities and secure maritime routes. Indonesia’s efforts for modernization of naval capabilities aligns with India’s push for regional maritime stability.

Shared Defence Priorities:

  • Freedom of navigation: Both nations advocate for the unrestricted movement of goods and military assets in the Indo-Pacific. Their shared stance opposes unilateral territorial claims of China and emphasis on adherence to international law.
  • Countering emerging threats: Efforts address piracy, illegal fishing, and other maritime crimes threatening regional stability. Present collaboration extends to managing contested waters and safeguarding trade routes critical to global supply chains.
  • Long-term goals: Secure the free flow of international trade and protect sovereignty against illegal incursions. Reinforce alliances with like-minded nations to counterbalance external power influences in the Indo-Pacific.

Multilateral Cooperation:

  • Cooperation in BRICS: Indonesia's membership of BRICS, granted in 2023, presents another avenue for collaboration. Much like India and Brazil on BRICS' platforms, India and Indonesia can leverage their partnership to bring strategic heft to this bloc. While Indonesia is unlikely to deviate significantly from Chinese preferences due to its deep economic ties with Beijing, Prabowo's autonomous policymaking tendencies pro- vide room for cooperation that transcends the "China factor".
  • ASEAN Plus Policy: In the past, Indonesia played a leading role in crafting ASEAN's Outlook on the Indo-Pacific (AOIP). This was instrumental in aligning the AOIP with India's Indo-Pacific Oceans Initiative (IPOI). Indonesia has committed to supporting the maritime resources pillar under the IPOI. By collaborating on projects within this pillar, the two nations can promote a pro-regional agenda beyond ASEAN, aligning with Prabowo's vision of creating an "ASEAN Plus" policy.
  • India-Indonesia-Australia trilateral: India and Indonesia, alongside Australia, already have a trilateral framework, though it lacks substantial content. It can build upon the IPOI and the Indian Ocean Rim Association (IORA), with India set to assume its chairmanship this year.
  • BIMSTEC: Indonesia should be invited to join the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) to integrate it better with India's eastern neighbourhood.
  • India-Japan-Indonesia Trilateral: Japan has recently expanded its Official Security Assistance (OSA) policy to include Indonesia, providing defence-related support. This opens the door for a potential India-Japan-Indonesia trilateral partnership.

By leveraging platforms such as BRICS, the IPOI, and trilateral frameworks with Australia and Japan, both India and Indonesia can forge deeper partnerships for the future. A robust India-Indonesia partnership has the potential to shape the strategic landscape of the Indo-Pacific and beyond.

What is DeepSeek AI?

Context: The Chinese start-up DeepSeek, has created a buzz with the launch of its cutting-edge AI models ‘DeepSeek-R1’ & ‘DeepSeek-V3’, claiming they nearly match the capabilities of top AI models in the U.S., while being far more affordable.

Relevance of the Topic: Prelims: Basic understanding of terms like Large Language Models, DeepSeek AI. 

What is DeepSeek?

  • DeepSeek is a Hangzhou-based Chinese startup that has recently launched artificial intelligence (AI) chatbot built on a low-cost Large Language Model (LLM) infrastructure. 
  • The AI is optimised for tasks like maths and coding, making it a strong competitor in the AI space.
DeepSeek

DeepSeek vs global LLMs: 

  • Low training cost: DeepSeek reportedly trained its model for just $6 million, significantly lower than the estimated $100 million expenditure behind OpenAI's GPT-4.
    • DeepSeek was able to dramatically reduce the cost of building its AI models by using NVIDIA’s H800 chips, an older generation of GPUs in the US.
  • High efficiency & Low cost: The model is being praised for its efficiency, as it uses advanced and lower-grade chips to deliver high performance at a lower cost.
    • E.g., Reportedly, DeepSeek-R1 is 20 to 50 times cheaper to use than OpenAI o1 model (depending on the task).
    • DeepSeek’s R1 may not be quite as advanced as OpenAI’s o3, it is almost on par with OpenAI o1 on several metrics.
  • Innovative & Adaptable:
    • DeepSeek-R1 uses reinforcement learning to naturally (autonomously) evolve its reasoning capabilities. The model self-improves through feedback loops during training, without needing massive labeled datasets.
    • DeepSeek-R1 can transfer (distill) reasoning capabilities into smaller models (SLMs), which are faster and more resource-efficient. Thus, DeepSeek-R1’s reasoning capabilities are scalable across different model sizes, making it highly adaptable.
  • Affordable for users: DeepSeek's paid subscription comes at $0.50 a month, while ChatGPT costs $20.

Concerns:

  • Censorship on digital content & bias:
    • Unlike many Western models, DeepSeek follows China's strict censorship rules. When asked about sensitive topics, it avoids direct answers, reflecting government control over digital content. 
    • Furthermore, the chatbot is expected to have a pro-China bias. 
  • Potential security risks: Experts have warned about potential security risks associated with the DeepSeek AI app, pointing out the need for scrutiny in data privacy and AI ethics.

Global Impact:

  • Sputnik moment: Much like the Sputnik in the 1950s, DeepSeek brings a new technological frontier into the great power competition.
  • Market disruption: The launch of the DeepSeek AI resulted in a historic $600 billion market value drop for Nvidia, a key player in AI chip production. 
  • Policy implications: DeepSeek heralds an escalation of the geopolitical rivalry between the US and China. It risks escalation of the US government's restrictions on advanced chip exports to China.  

Read more: What are Small Language Models? 

Microplastics block Blood Flow in Brain in Mice: Study

Context: A new study has revealed that microplastics (tiny plastic particles measuring less than 5mm in diameter) can block the flow of blood in the brains of mice. It is still unclear if plastics could cause similar blockages in the human brain, the analysis is concerning due to the increasing presence of microplastics in the human body. 

Relevance of the Topic: Prelims: Key facts about Microplastics; their impact. 

What are Microplastics?

  • Microplastics are small pieces of plastic, less than 5 mm (0.2 inch) in diameter, that occur in the environment as a consequence of plastic pollution.
    • Microplastics are likely to degrade into smaller nanoplastics through chemical weathering processes & mechanical breakdown. 
    • Nanoplastics are smaller than 1 µm (1nm - 1000 nm).
  • Microplastics accumulate in the air, terrestrial ecosystems and aquatic and marine ecosystems (even found at deep layers of ocean sediment). 
  • Humans are exposed to microplastics by oral intake, inhalation, and skin contact. Researchers have detected the existence of microplastics in human lungs, testicles, bone marrow and even in blood. 
    • According to a report by the World Economic Forum, it is estimated that the average person can eat, drink or breathe between 78,000 and 211,000 microplastic particles  annually. 
image 219

Types of Microplastics:

Microplastics can be divided into primary and secondary microplastics. 

  • Primary microplastics are items of plastic that are already smaller than 5mm. E.g., nurdles (plastic beads used in plastic manufacturing), microbeads from cosmetics, fibres from clothing, spills during manufacturing or transport. 
  • Secondary microplastics are formed from the breakdown of larger plastics via exposure to wave action, wind abrasion, and ultraviolet radiation from sunlight.
Microplastics

Impacts of Microplastics

  • Microplastics exposure in humans can cause:
    • intestinal injury, liver infection
    • neurotoxicity 
    • lipid accumulation and metabolic disorder 
    • increases expression of inflammatory factors, autoimmune disorders
    • reduces the quality of germ cells, and affects embryo development
    • inhalation of airborne microplastics can cause asthma, lung cancer.  
  • Environmental impacts: 
    • Causes water pollution. Bioaccumulation and biomagnification in aquatic fauna.  
    • In terrestrial ecosystems, microplastics reduce the viability of soil ecosystems.
  • Microplastics can act as a reservoir of microbes resistant to antimicrobials. 

Need for Parity in Taxation

Context: Simplified tax regime for investments proposed in the July 2024 Budget has introduced  significant changes, particularly disadvantageous to investors in fixed income instruments. 

Relevance of the topic:

Prelims: Taxation of investments

Mains: Taxation policy- Issues, Way Forward

What are Capital Gains?

  • Capital gain is the difference between the purchase price and the sale price of an investment. 
  • Capital gains refer to an increase in the value of an investment over a specific timeframe.
    • If the NAV of a debt fund was Rs. 10 last year and today it stands at Rs. 15, the value of your investment has appreciated, and this is called capital gains. 
    • Here, your investment would yield a capital gain of Rs. 5 per unit on redeeming.

What is Indexation?

  • Indexation is used to adjust the purchase price of an investment to reflect the effect of inflation on it. In this way, one will be able to lower your tax liability.
  • A higher purchase price means lesser profits, which effectively means a lower tax.

Taxation and Indexation of Debt & Equity Funds: 

  • For debt funds, which are long-term in nature (held for more than 36 months), capital gains are arrived at after indexing the purchase price of the investment.
    • Budget 2024 update: For debt mutual funds, the holding period to qualify as a long-term asset is now reduced from 36 months to 24 months.
  • Unlikeequity funds, long-term capital gains on debt funds are taxable at the rate of 20% with the benefit of indexation.
    • Budget 2024 update: With effect from July 23 2024, long-term capital gains on debt funds are taxable at the rate of 12.5% without the benefit of indexation.
    • This means that investors can no longer adjust the purchase price of their investments for inflation, when calculating capital gains for tax purposes.
  • Note: Indexation does not apply to equity funds. 

Current disparity in Taxation:

  • The 2024 Budget removed indexation benefits on capital gains from debt fund investments made before April 1, 2023. This subjected all returns from investments to taxation at slab rates. 
  • This change impacts not just debt-oriented mutual funds, but all fixed income investors, including those with bank deposits, corporate fixed deposits, small savings schemes, corporate bonds or government bonds.
  • Taxing these returns at the slab rate has resulted in a negative real return to investors. 

Impacts of disparity in Taxation: 

  • Skewed retail asset allocation:
    • Unfavourable tax treatment of returns on debt instruments versus equity capital gains has skewed retail asset allocation towards the risky stock market.
    • Savings in safer debt instruments are declining. 
    • The share of debt fund assets in the mutual fund industry has shrunk from 32% to 27% between December 2022 and December 2024.
    • Equity funds have seen their share increase from 58 to 61%. 
  • Taxation influencing asset allocation:
    • Asset allocation decisions should ideally be based on the individual risk appetite of investors. But retail investors are shifting towards equity markets, due to removal of  indexation benefits on capital gains from debt fund investments.  
  • Declining household savings:
    • Fixed income investments such as deposits and small savings schemes are primary investments for the majority of households. Negative real returns on these instruments take away the basic rationale for saving itself. 
    • Consequently, households’ savings in financial assets have been flat-lining in recent years, even as they are rising in gold and real estate assets.
  • Adverse impacts on vulnerable sections:
    • Punitive taxation on fixed income instruments hits vulnerable sections of the population – be it the young earner parking money in recurring deposits or the retiree subsisting on passive income.
  • Investment needs for Infrastructure:
    • Healthy household deposit flows are critical to our infrastructure building ambitions. 
    • These cannot take wing without retail participation in deposits, bonds and debt mutual funds. 

Way Forward

  • The government must initiate corrective steps to lighten the tax burden on fixed income instruments. 
  • Introduce a flat rate for fixed income instruments that allows for a positive real return. 
  • Debt avenues favoured by vulnerable sections such as post office schemes and senior citizen deposits, must be exempted from tax.

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