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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.

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

Promotion and Regulation of Online Gaming Act 2025

Context: The President of India has given assent to the Promotion and Regulation of Online Gaming Bill, 2025. The Act encourages e-sports and online social games, while prohibiting harmful online money gaming services, advertisements, and financial transactions related to them.

Relevance of the Topic: Prelims: Key facts about Online Gaming in India, provisions of Promotion and Regulation of Online Gaming Bill, 2025.

Promotion and Regulation of Online Gaming Act 2025

The Act imposes a complete ban on online money games which applies to games of chance, games of skill, and those that combine both. Advertising and promotion of such games is strictly prohibited. Financial transactions related to these platforms cannot be processed by banks or payment systems. Authorities will be empowered to block access to unlawful platforms under the Information Technology Act, 2000.
Offences and Penalties:
- Offering or facilitating online money games can lead to imprisonment of up to 3 years and a fine of up to 1crore rupees. Financial transactions linked to these games are also punishable with similar penalties.
- Advertising such games can attract a jail term of up to 2 years and a fine of up to 50 lakh rupees.
- Repeat offenders face harsher punishments, including imprisonment of up to 5 years and fines of up to 2 crore rupees.
- Offences under key provisions will be cognisable and non-bailable (police can arrest without a warrant and bail is not a right). Central Government may authorise officers to investigate, search and seize both digital and physical property linked to offences.
- Corporate and Institutional Liability: Companies and their officers will be held accountable for offences.
Promotion and Recognition of E-Sports:
- E-sports have been recognised as a legitimate competitive sport in India. The Ministry of Youth Affairs and Sports will prepare guidelines and standards for tournaments.
- Training academies, research centres and technology platforms will be set up to advance the sector, along with providing incentive.
Establishment of Online Gaming Authority: A national-level regulatory authority will be established, or an existing one may be designated for oversight. Its functions will include categorising and registering online games, deciding whether a game qualifies as a money game, and addressing public grievances. The Authority will issue guidelines, codes of practice and directions to ensure compliance.

Online Gaming Sector in India

Online gaming has emerged as one of the fastest-growing segments of India’s digital economy, driven by cheap data, smartphone penetration, and a young demographic.
India is among the largest online gaming markets by users, though the industry remains dominated by Real Money Gaming (RMG) platforms.

Market Size & Growth:

India had over 500 million gamers in 2023 expected to cross 650 million by 2025.
Online gaming revenue stood at around ₹16,000 crore in 2023, projected to grow rapidly.
Composition: RMG constitutes nearly 80-86% of gaming revenues (fantasy sports, rummy, poker, etc.). Non-monetary games (casual, educational, e-sports) form a smaller share but growing base.
The RMG sector currently contributes ₹20,000 crore in annual GST, alongside ₹25,000 crore in investments, 2 lakh jobs, and 400 companies are at stake.

Why is the Ban Imposed?

Addiction and Massive Financial Loss: Online money games encourage compulsive playing. It is estimated that roughly 45 crore Indians collectively lose about ₹20,000 crore each year on real-money gaming platforms.
Mental Health and Suicide: Rising Suicide cases linked to gambling debts. E.g., Karnataka police records attribute 32 suicides in just 31 months to online gambling debt spirals.
Distorted Industry Structure: In 2024, 86% of online gaming revenues came from Real Money Gaming (RMG) platforms, overshadowing creative and educational games.
Regulatory challenges: The “skill vs chance” legal loophole allowed quasi-gambling to flourish unchecked.
Fragile growth model: The 28% GST imposition in 2023 caused huge losses, layoffs, and investor exits. The business model relied on tax loopholes and user losses, not on real innovation.
Threat to National Security: Investigations have shown that some gaming platforms were being used for terror financing and illegal messaging, which compromise the country’s security.
Closing Legal Loopholes: Gambling and betting are already restricted under Indian laws such as the Bharatiya Nyaya Sanhita, 2023, and by various state legislations. But the online domain remained largely unregulated. The Bill ensures that the same standards apply in both physical and digital spaces.

Significance of the Ban:

Protects Vulnerable Populations: Prevents gambling addiction, debt spirals, and suicides linked to persistent small-value losses.
Correct Market Distortion: Shifts India’s gaming sector away from Real Money Gaming (86% revenues) towards building creative, export-oriented games instead of quasi-gambling apps.
Regulatory Clarity: A blanket ban ends the legal ambiguity of “skill vs chance” and simplifies enforcement.

Consumer Welfare and Social Stability: Safeguards household savings, reduces predatory advertising, and curbs associated crimes.
Encouraging Healthy Alternatives: E-sports will be promoted as a legitimate sport, while social and educational games that build skills and cultural values will receive government support.

Regulations for Online Gaming Sector in India

1. Information Technology Act, 2000 and Related Rules:

The IT (Intermediary Guidelines and Digital Media Ethics Code) Rules 2021 laid down norms for online gaming platforms.

Online gaming intermediaries must ensure unlawful or illegal content is not shared on their networks.
Intermediaries offering money games are required to register with self-regulatory bodies (SRBs) which verify whether a game is permissible.
Section 69A of the IT Act empowers the Government to block access to illegal websites or links. E.g., Over 1500 betting and gambling websites and mobile apps have been blocked between 2022 and 2025 (till date).

2. Bharatiya Nyaya Sanhita 2023:

Section 111 penalises unlawful economic activities and cybercrimes.
Section 112 prescribes punishment for unauthorised betting and gambling. Offenders face a minimum of one year imprisonment, extendable up to seven years and fine.

3. Integrated Goods and Services Tax Act 2017:

Illegal and offshore gaming platforms are regulated under the IGST Act.
Online money gaming suppliers must register under the Simplified Registration Scheme.
Directorate General of GST Intelligence is authorised to direct intermediaries to block access to unregistered or non-compliant gaming platforms. This ensures digital entities follow the same taxation rules as physical businesses.

4. Consumer Protection Act 2019:

Prohibits misleading and surrogate advertisements.
The Central Consumer Protection Authority (CCPA) has powers to investigate, penalise and take criminal action against offenders. CCPA has issued advisories to prevent celebrities and influencers from endorsing betting platforms.

Global Lessons

Finland, despite its small population, has built a globally competitive gaming ecosystem. It hosts over 250 gaming studios, generates more than €3 billion in turnover, and has produced multiple global hits through companies like Supercell and Rovio.
Its ecosystem is export-led, talent-dense, resilient, and achieved entirely without money-based apps.

India should take inspiration from Finland’s experience. Rather than letting its industry be dominated by real-money apps that erode savings, it must shift towards a creative, export-oriented ecosystem that nurtures world-class intellectual property.

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

Agni 5: Intermediate Range Ballistic Missile

Context: Recently, India successfully test-fired its nuclear-capable intermediate range ballistic missile (IRBM) Agni 5 from the integrated test range (ITR) at Chandipur in Odisha.

Relevance of the Topic:Prelims: Key facts about Agni 5 missile; Agni Missile series.

About Agni 5 missile

Developed by: Defence Research and Development Organisation.
Agni-5 is among India’s most advanced long-range ballistic missiles. Equipped with modern navigation, guidance, warhead and propulsion technologies, it strengthens India’s nuclear deterrence.

Key features of Agni 5 missile:

Nuclear-capable ICBM: Agni 5 is a land-based Intercontinental Ballistic Missile (ICBM) with Multiple Independently Targetable Reentry Vehicle (MIRV) capability.
Extended range: Designed for nuclear use, Agni 5 has a range of over 5000 kilometres.
Propelled by a solid rocket propellant system. Agni 5 is powered by a three-stage solid-rocket-powered missile system capable of delivering a 1.5-tonne nuclear warhead.
MIRVed test launch: In 2024, India conducted the first MIRVed test launch of Agni 5 from validating its ability to carry and release multiple warheads.
Warhead capacity: Capable of carrying and firing up to 3 nuclear warheads simultaneously.
Future enhancements: New variants under development aim to integrate bunker-buster bomb technology, expanding the missile’s strike capability against fortified targets.

Key Facts:

India’s missile development accelerated after it joined the Missile Technology Control Regime (MTCR) in 2016 gaining access to advanced systems.
India has a no-first use policy for nuclear weapons, hence, the missile can offer incredible deterrence to prevent a nuclear attack.

The successful test reaffirms India’s commitment to maintaining a credible minimum deterrence posture.

Also Read: Mission Divyastra: Agni-V with Multiple Warhead Technology

India needs a National Space Law

Context: India’s space programme has achieved remarkable milestones from the cost-effective success of Mangalyaan (2014) to the historic soft landing of Chandrayaan-3 (2023) and the upcoming Gaganyaan mission. These achievements have positioned India among the top spacefaring nations.

However, India lacks a comprehensive National Space Law which is essential to regulate private participation, ensure accountability, and align with international obligations.

Relevance of the Topic: Prelims: India's and Global Space Legislation.Mains: Why India Need for National Space Legislation?

Global Space Legislation

The Outer Space Treaty of 1967 is the foundational legal framework for outer space.

Outer Space Treaty of 1967:

It declares space to be the province of all mankind
Prohibits any national appropriation of celestial bodies, and
Makes states responsible for all space activities conducted under their jurisdiction, including those by private actors.
Its companion agreements create binding frameworks of rights, responsibilities, and liability rules.

Companion Agreements of OST 1967:

Liability Convention 1972: Establishes state responsibility for damages caused by space objects.
Registration Convention 1976: Mandates registration of space objects.
Moon Agreement 1979: Treats space resources as “common heritage of mankind” (India is not a party).

Limitations:

These treaties are not self-executing. They need to be translated into national laws for effective enforcement.

India’s Current Legal & Policy Framework

India has ratified the key UN space treaties but it is still in the process of enacting comprehensive national space legislation. Current regulatory measures include :

Indian Space Policy, 2023: outlines roles of government and private entities.
IN-SPACe (Indian National Space Promotion and Authorisation Centre): Regulator for non-governmental space activities.
Catalogue of Indian Standards for Space Industry: Provides technical safety guidelines.
Norms, Guidelines and Procedures (NPG), 2023: Framework for authorisation of space activities.

Need for National Space Legislation:

International Obligations: Under Article VI of the OST, India is internationally liable for activities of private companies. Without national law, India risks treaty violations or arbitrary regulation.
Predictability & Legal Clarity: National space legislation offers predictability, legal clarity, and a stable regulatory environment for both government and private actors, critical for attracting private investments.
Industry Concerns:
- IN-SPACe lacks statutory authority; its decisions are vulnerable to procedural challenges.
- Companies face delays due to the dual-use nature of space technology (defence and civilian), requiring multiple ministry clearances.
- Unclear FDI rules and lack of affordable third-party insurance hinder startups.
- Weak IPR protection risks migration of talent to IP-friendly jurisdictions.
Strategic Importance: Space technologies are dual-use and critical for national security, absence of legal clarity can weaken strategic autonomy in space.

At present, more than 20 countries including the U.S., Luxembourg, and Japan already have national space legislation. To compete in this rapidly expanding market which is projected to reach $1 trillion globally by 2040, India cannot afford regulatory ambiguity.

In the words of UNOOSA, “policy signals intent, but law creates enforceable structure.” For India to lead the new space age, enacting this law is no longer optional but an imperative.

What are Machine Readable Electoral Rolls?

Context: Recently, the Leader of Opposition alleged vote theft and demanded that the Election Commission (EC) provide machine-readable voter rolls to political parties.

Relevance of the Topic: Prelims: About Machine Readable Electoral Rolls.

What are Electoral Rolls?

Electoral Roll is the authoritative list of all eligible voters prepared under the Representation of the People Act, 1950.
Voter rolls are prepared by district officials under the EC’s authority using ERONET, a digital system for adding or deleting voter entries. They are regularly updated to include newly eligible voters, address changes, or removals of ineligible voters.

How are Voter Rolls shared?

The Election Commission shares electoral rolls mainly as image PDF files on its website. These PDFs include details like name, age, gender, address, and EPIC number, but do not include photographs online.
Physical copies or printouts may also be provided to political parties and the public.
Limitations:
- Image PDFs cannot be easily indexed or searched by computers.
- Detecting duplicates requires manual effort, and with over 99 crore entries, spotting errors becomes highly challenging.

Opposition parties are demanding machine-readable voter rolls, as these would allow data to be searched, indexed, and analysed by computers, enabling quick detection of duplicate or bogus entries across constituencies and facilitating large-scale analysis for greater accuracy and fairness.

Why does the EC not provide Machine-Readable Voter Rolls?

Privacy risks: The EC stopped uploading machine-readable rolls before the 2019 elections citing privacy risks - foreign entities can access sensitive details such as the full names and addresses of Indian voters.
- In Kamal Nath vs Election Commission of India (2018), the Supreme Court refused to compel the EC to provide machine-readable rolls. The Court observed that political parties could convert the existing image PDFs into searchable format on their own if they wished.
- This position, however, contradicted the EC’s own manual which states that draft rolls should be published on State CEO websites in “text mode.”
Technical and financial barriers: Voter rolls are divided into hundreds of separate PDF parts for each constituency, making large-scale analysis difficult. Converting these files through Optical Character Recognition (OCR) is resource-intensive; with over six crore pages nationwide, the estimated cost is about $40,000 per revision cycle.

Saltwater Crocodiles on Rise in Sundarbans

Context: As per the latest survey, the estimated population of saltwater crocodiles, one of the largest reptiles in the world, has increased in the Sundarban Biosphere Reserve (SBR).

Relevance of the Topic:Prelims: Key facts about crocodile species in India; Sunderbans.

About Sundarbans

The Sundarbans is a cluster of low-lying islands in the Bay of Bengal. Located in the delta of Rivers Ganges and Brahmaputra in India & Bangladesh.
Sunderban is the largest delta and mangrove forest in the world. It is the only mangrove forest in the world where tigers are found.
Area: covering ~10,000 sq km of which around 40% lies in India (rest in Bangladesh).
Indian Sunderban is bounded on the west by river Muriganga and on the east by rivers Harinbhahga and Raimangal. Other major rivers flowing through this eco-system are Saptamukhi, Thakuran, Matla and Gosaba.
Protection status:
- Listed as UNESCO World Heritage Site
- UNESCO Biosphere Reserve
- Ramsar Site (2019)
- Important Bird Area (IBA) under BirdLife International
Part of Sundarbans Tiger Reserve has been declared a critical tiger habitat under national law, and Tiger Conservation Landscape of global importance.
Fauna: Critically endangered northern river terrapin (Batagurbaska); endangered Irrawaddy dolphin; Other species include- Gangetic dolphins, Fishing cat, Olive Ridley Turtle, Tiger, Saltwater crocodile.
Flora: Dominated by Sundari tree (from which Sundarbans gets its name); Mangroves.

Crocodiles in India

India is home to three crocodile species- Gharial, Mugger, and Saltwater Crocodiles.
Crocodiles are cold-blooded animals usually spotted on banks of the aquatic systems.
Crocodiles are apex predators and play a critical role in the ecosystem by maintaining biodiversity and ecological balance: they control the population of other aquatic animals.
Conservation:
- All three crocodile species are placed under Schedule I of the Wildlife Protection Act 1972.
- India launched Crocodile Conservation Project in Odisha's Bhitarkanika National Park in 1975 with aid from United Nations Development Programme.

1. Saltwater Crocodile:

Largest of all crocodile species and the largest reptile in the world. Recognised as a man eater.
It is a hypercarnivorous apex predator that keeps flowing water ecosystems clean by feeding on the carcasses and wild remains in the water.
Also known as estuarine crocodiles. It is distributed across the swamplands, rivers, mangroves of Odisha (Bhitarkanika National Park) and West Bengal (Sundarbans) and the coastal areas of the Andaman and Nicobar Islands.
IUCN status: Least concern
Concern: Increasing salinity may reduce the suitability of their habitat and may threaten their conservation, particularly in the Sundarbans which is vulnerable to climate change.
Conservation Effort: Bhagabatpur Crocodile Project (conservation and breeding facility in West Bengal).

2. Mugger:

They have a broad-snouted nose. They are also known as Marsh crocodiles. They are found in freshwaters like rivers and also in estuaries and marshy areas.
Mugger has a diverse and broad diet. They are known to dig burrows or holes for nesting purposes.
Muggers have stronger legs which allow them to bask mainly on river banks choosing steeper slopes and elevated platforms.
Their tough keratin scales are known to be sensitive to even the slightest motion in the water and this helps them detect prey easily.
IUCN status: Vulnerable

3. Gharials:

They are endemic to the Indian subcontinent.
They are shy-natured and the most aquatic of all the species.
They are the longest living crocodile species, native to northern India and are distinguished by their long, narrow snouts. The gharials are predominantly a fish-eater.
Gharials prefer to bask on mid-river sand islands on gentle slopes as they have weaker legs and can only crawl.
Chambal River (tributary of river Yamuna) holds the largest population of Gharials in the wild.
IUCN status: Critically Endangered

Note: Both Mugger and Gharials are freshwater species and have overlapping habitats in the northern rivers (Ganges, Chambal, Son, Ramganga and Girwa) and eastern (Mahanadi) river systems of India. They have shown systematic resource partitioning in their aquatic environments.

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.

India sets eyes on 10% of global Green Hydrogen demand

Context: India aims to capture 10% of the global green hydrogen demand by 2030, with significant progress made through the National Green Hydrogen Mission. The global green hydrogen demand is expected to exceed 100 million metric tonnes (MMT) by 2030.

Relevance of the topic:

Prelims: Types of Hydrogen, National Hydrogen Mission

Mains: Benefits and Challenges in production of Green Hydrogen as a fuel.

Hydrogen as an Alternative Fuel

Hydrogen is the lightest and the most abundant element in the universe. On Earth, it is found in compounds like water or hydrocarbons. However, Hydrogen is not present in the free state. Therefore, it must be created and stored before it tends to be utilised.
Hydrogen Fuel: Hydrogen fuel is produced by splitting water (H₂O) into its components: hydrogen (H₂) and oxygen (O₂). The hydrogen gas can be used to power fuel cells, which generate electricity through a chemical reaction between hydrogen and oxygen, releasing only water vapour as a byproduct.

Green Hydrogen:

Green hydrogen is hydrogen produced using electricity from clean energy sources, such as wind and solar energy, which do not release greenhouse gases when generating electricity.
Green hydrogen is made when water (H2O) is split into hydrogen (H2) and oxygen (O2) via a process known as electrolysis.

Other Types of Hydrogen:

Depending on the type of production used, different colour names are assigned to the hydrogen.

1. Grey Hydrogen:

Grey hydrogen is produced using fossil fuels such as natural gas or coal. Grey hydrogen accounts for roughly 95% of the hydrogen produced in the world today.
The two main production methods are steam methane reforming and coal gasification. Both of these processes release carbon dioxide (CO2).
If the carbon dioxide is released into the atmosphere, then the hydrogen produced is referred to as grey hydrogen.

2. Blue Hydrogen:

Blue hydrogen is similar to grey hydrogen, except that most of the CO2 emissions are sequestered (stored in the ground) using carbon capture and storage (CCS).
Capturing and storing the carbon dioxide instead of releasing it into the atmosphere allows blue hydrogen to be a low-carbon fuel.
Blue hydrogen is a cleaner alternative to grey hydrogen, but is expensive since carbon capture technology is used.

3. Pink Hydrogen:

Pink hydrogen is produced through electrolysis of water but using energy from nuclear power, which does not produce any carbon dioxide emissions.
Pink hydrogen facilities can achieve a high capacity factor due to the steady base-load profile of nuclear power (involving both stability and density), as compared to the intermittent supply from renewable sources (solar, wind).

4. Turquoise Hydrogen: Turquoise hydrogen is made using a process called methane pyrolysis. In this process methane is split into hydrogen and solid carbon with heating in reactors or blast furnaces.

National Green Hydrogen Mission:

National Green Hydrogen Mission was launched in 2023 with an outlay of Rs. 19,744 crores from FY 2024 to FY 2030.
Aim: To develop India into a global hub for production, usage and export of Green hydrogen and its derivatives.
The scheme has set out a goal of at least 5 million metric tonnes (MMT) of annual green hydrogen production capacity by 2030.
Initiative of: Ministry of New and Renewable Energy (MNRE).

As part of the mission, the government has awarded 3,000 megawatts of electrolyser manufacturing capacity to 15 companies, signaling a major industrial push.

Recently, the government has announced that India aims to secure 10% of global green hydrogen demand, or 10 million metric tonnes (MMT) by 2030, which is an aspirational target than that set in the National Green Hydrogen Mission.

Challenges associated with production of Green Hydrogen:

Renewable energy supply crunch: Achieving the target under the National Green Hydrogen Mission requires the installation of 125 GW of dedicated renewable energy and 250,000 gigawatt-hr. units of power (250 TWh), equivalent to about 13% of India’s present electricity generation.
Relying on conventional energy sources: The main concern is that if electrolysers (which split water to produce hydrogen and oxygen) were to run 24x7, they would have to operate even at night when no solar power is available. This would then mean tapping into conventional coal-fired electricity (about 70% of the electricity on the grid is coal-generated).
Burning Biomass: India’s standards allow the use of biomass to produce green hydrogen, which results in carbon emissions when burnt.
Technological constraints: The challenge is to compress or liquify Hydrogen. It needs to be kept at a stable minus 253°C (far below the temperature of (-) 163°C at which Liquified Natural Gas (LNG) is stored; making its ‘prior to use cost’ extremely high.
Prohibitive Costs: The production cost of green hydrogen has been a prime obstacle. Research conducted by the International Renewable Energy Agency (IRENA) indicates that the cost of its production is about $1.5 per kg by 2030 (for countries with eternal sunshine and huge unoccupied areas) if several conservative measures are implemented.
Lack of Manufacturing and deployment of electrolysers: India’s current electrolysers manufacturing capacity is around 0.4 GW, which needs to be scaled to ~200 GW by 2050.
High cost of storage system: Fuel cells which convert hydrogen fuel to usable energy for cars, are still expensive.

Way Forward

Development of technology to produce green hydrogen is expensive. However, falling prices for renewable energy and fuel cells and stringent climate change regulations have spurred investment in the sector.

Investing in R&D and promoting private sector participation in the hydrogen economy.
Developing standardised procedures, rules and standards for hydrogen economy which will standardise and scale up production.
Mandating large users of hydrogen to shift to green hydrogen such as refineries, iron, and steel plants etc. For example, a minimum green hydrogen mandate can be introduced in such industries.
Green hydrogen facilities can be created at sites where the cost of producing renewable energy is lowest. E.g., in the Thar desert region in Rajasthan and Ladakh etc.
Facilitating international trade in clean & green hydrogen.

Also Read: Hydrogen as an alternative fuel: Explained

China’s Xinjiang-Tibet Railway Project

Context: China has recently set up the Xinjiang-Xizang Railway Co. Ltd. to construct a high-altitude railway line linking Hotan in Xinjiang with Shigatse and Lhasa in Tibet.

Relevance of the Topic: Prelims: China’s Xinjiang-Tibet Railway Project.

China’s Xinjiang-Tibet Railway Project

The project is part of Beijing’s larger “Go West Strategy” to integrate its underdeveloped western regions.
The line will connect two restive and strategically sensitive frontier provinces – the Xinjiang Uyghur Autonomous Region (northwest) and the Tibet Autonomous Region (south).

Key Features of the Project:

The Xinjiang-Xizang line will run from Hotan in northwest China’s Xinjiang Uygur autonomous region to Shigatse and Lhasa in Xizang, Tibet.
The project is a part of five planned railway corridors into Tibet, aimed at building a comprehensive rail network across the high-altitude region.
The route is expected to run close to the Line of Actual Control (LAC) and may pass through Aksai Chin, Indian territory occupied by China since 1962.

Significance of the Project:

The project has multiple aims including facilitation of the movement of soldiers to harness untapped economic potential in these regions.

Political Integration of Frontier Regions: Xinjiang and Tibet are historically prone to separatism and unrest. Enhanced connectivity strengthens the Chinese state’s presence and integrates them more tightly into Beijing’s administrative framework.
Cultural Assimilation (Sinicisation): The railway facilitates Han Chinese migration into minority regions. This supports the policy of Sinicisation, which aims to assimilate local Uyghur and Tibetan populations into the dominant Han culture.
Military and Strategic Utility: The railway provides the People’s Liberation Army (PLA) with faster troop mobilisation and logistical support in high-altitude areas.
Economic Development of the West: The project seeks to unlock resources, promote trade, and generate employment in historically underdeveloped western provinces.

Implications for India:

The railway may pass through Aksai Chin, strengthening China’s control over the Indian territory occupied by China since 1962.
It will improve the PLA’s mobility and logistics, giving China a military edge along the LAC.

Taking stock of India-China Bilateral Ties

Context: Recently, the Chinese Foreign Minister paid a two day official visit to New Delhi, first such visit since 2021. He co-chaired the 24th round of the Special Representatives’ dialogue on the Boundary Question between India and China with India’s National Security Advisor.

Relevance of the Topic : Mains: India and its Neighbourhood: India-China Relations.

India-China relations constitute one of the most significant bilateral equations in contemporary international politics. Characterised by deep economic interdependence, multilateral cooperation, and persistent strategic distrust, the relationship has been under strain since the 2020 Galwan clashes

Recent talks between Chinese Foreign Minister Wang Yi and Indian leadership, along with the planned Modi-Xi meeting at the upcoming SCO Summit in Tianjin, indicate renewed efforts to stabilise borders, rebuild economic ties, and restore strategic trust.

Key Developments of Chinese Foreign Minister’s Visit

Border Management and Security:

Both sides agreed to establish new mechanisms under the Working Mechanism for Consultation and Coordination (WMCC) on India-China Border Affairs:
- Expert Group to explore early harvest outcomes in boundary delimitation.
- Working Group to advance effective border management in order to maintain peace and tranquillity in the border areas.
- General Level Mechanisms in the Eastern and Middle Sectors, in addition to the existing General Level Mechanism in Western Sector.
Both sides reiterated that peace and tranquillity along the LAC is essential for overall ties.

Political and Diplomatic Engagement:

Indian Prime Minister Modi stated that India-China relations must be guided by mutual respect, sensitivity, and shared interests.

Economic and People-to-People Ties:

Agreement to resume direct flight connectivity and finalise an updated Air Services Agreement.
Decision to reopen border trade routes at Lipulekh Pass, Shipki La Pass, and Nathu La Pass.
China assured India of addressing its needs for fertilisers, rare earth minerals, and tunnel boring machines.
Revival of Kailash-Mansarovar Yatra and planning of people-to-people exchanges to mark the 75th anniversary of diplomatic ties in 2025.
Agreement to facilitate visas for tourists, businesses, media, and other visitors.

Strategic and Regional Issues:

India strongly raised concerns about cross-border terrorism from Pakistan, with both sides agreeing that SCO must prioritise counter-terrorism.
India expressed concerns over China’s mega dam on the Brahmaputra (Yarlung Tsangpo), stressing the need for transparency and data-sharing.

On trans-border rivers cooperation, the Chinese side agreed to share hydrological information during emergency situations based on humanitarian considerations.
Both sides agreed to cooperate on multilateral issues, uphold a rules-based WTO system, and promote a multipolar world.
India and China pledged reciprocal support for hosting BRICS summits in 2026 and 2027.

Challenges in India-China Relations:

Taiwan Controversy: China’s readout claimed Jaishankar acknowledged Taiwan as part of China. India clarified no change in policy, i.e., relations with Taiwan remain economic, technological, cultural.
Trust Deficit from repeated Chinese incursions on the border: Depsang in 2013, Chumar in 2014, Doklam in 2017, Galwan in 2020.
Chinese Projects on Brahmaputra: India remains cautious of hydrological risks and ecological consequences.
China-Pakistan Axis: India continues to be wary of China’s all-weather friendship with Pakistan. China’s military cooperation with Pakistan was on display during Operation Sindoor, when the Chinese supplied weapons and live intelligence to the Pakistanis.
China’s export restrictions: India is concerned at China’s export restrictions on rare earths, tunnel boring machines, and fertilisers, which are key to India’s development and food security.

The Wang Yi visit and the upcoming Modi-Xi meeting represent an opportunity for recalibration in India-China relations. The litmus test remains peace and stability on the border. For India, the challenge will be to remain firm on sovereignty while pragmatic on cooperation.

Also Read: India-China Relations: Developments & Challenges

Election Commission of India: Powers & Criticism

Context: The Election Commission of India (ECI) is constitutionally mandated to conduct free and fair elections. With the ongoing Special Intensive Revision (SIR) controversy in Bihar, the credibility of ECI is being questioned. In a functional democracy, reinforcing trust in ECI is crucial to ensure the principle of one person, one vote.

Relevance: Prelims: Powers and functions of Election Commission of India. Mains: Election Commission: Reforms Needed & Way Forward.

Election Commission of India

The Election Commission is a permanent and an independent body established by the Constitution of India directly to ensure free and fair elections in the country.
Article 324 of the Constitution provides that the power of superintendence, direction, and control of elections vested in the Election Commission, related to:
- Parliament
- State legislatures
- Office of President of India
- Office of Vice-President of India
Article 324 (2): Election Commission shall consist of the Chief Election Commissioner (CEC) and such number of Election Commissioners (ECs), as the President may fix from time-to-time.
Article 324 of the Constitution and the CEC and Other Election Commissioners (Appointment, Conditions of Service and Term of Office) Act, 2023 lay down provisions regarding the appointment, tenure, and removal of the CEC.

Election Commission of India: Powers & Criticism

Powers and functions of ECI:

The powers and functions of the Election Commission with regard to elections to the Parliament, state legislatures and offices of President and Vice-President can be classified into three categories: Administrative, Advisory and Quasi-Judicial. In detail, these powers and functions are:

To determine the territorial areas of the electoral constituencies throughout the country on the basis of the Delimitation Commission Act of Parliament.
To prepare and periodically revise electoral rolls and to register all eligible voters.
To notify the dates and schedules of elections and to scrutinize nomination papers.
To grant recognition to political parties and allot election symbols to them.
To act as a court for settling disputes related to granting of recognition to political parties and allotment of election symbols to them.
To appoint officers for enquiring into disputes relating to electoral arrangements.
To determine the code of conduct to be observed by the parties and the candidates at the time of elections.
To prepare a roster for publicity of the policies of the political parties on radio and TV in times of elections.
To advise the President on matters relating to the disqualifications of the members of Parliament.
To advise the governor on matters relating to the disqualifications of the members of the state legislature.
To cancel polls in the event of rigging, booth capturing, violence and other irregularities.
To request the President or the governor for requisitioning the staff necessary for conducting elections.
To supervise the machinery of elections throughout the country to ensure free and fair elections.
To advise the President whether elections can be held in a state under the president's rule in order to extend the period of emergency after one year.
To register political parties for the purpose of elections and grant them the status of national or state parties based on their poll performance.

Criticism and Challenges faced by the Election Commission of India:

Executive Control in Appointment: Parliament replaced the SC’s interim tripartite panel (PM + LoP + CJI) with a selection committee (PM + a Cabinet Minister nominated by the PM + LoP) to appoint CEC, creating a built-in 2:1 executive majority. This selection committee design for the appointment of CEC weakens institutional independence of the Election Commission.
Limited Safeguards to ensure Independence:
- Article 324 does not lay out specific qualifications (educational, professional, or otherwise) for appointment of CEC and ECs.
- The Constitution does not bar retiring CEC and ECs and from holding further government office. In the past, retired CEC and ECs have been appointed to the posts like Governor etc. This leaves the scope for partisan approach in their conduct in the anticipation of post-retirement allurements.
Lack of Financial Autonomy: As per the current practice, ECI’s expense is voted and approved by Parliament thereby giving financial discretion to the Parliament. The expenses of ECI are not charged upon Consolidated Fund of India, making EC dependent on the central government in financial matters.
Lack of Security of Tenure to ECs: While CEC can only be removed on the grounds as needed for the removal of a Supreme Court judge; ECs can be removed from office on the CEC's recommendation. This makes ECs vulnerable and affects their ability to act independently.
Lack of Permanent Staff: ECI does not have independent staff of its own, and is dependent upon staff of Central and State Governments for administrative staff whenever elections take place. This hampers efficient functioning of the Commission posing incidents like power tussles between ECI and state government staff in certain states.
Limited Power to regulate Political Parties: ECI does not have an explicit power to deregister political parties in any event (except on limited grounds such as registration obtained by fraud). ECI does not have any power to enforce internal democracy with political parties and has limited power in regulating party finances.
Reduced Transparency: The ongoing SIR controversy in Bihar which led to the exclusion of 65 Lakh voters from the electoral rolls adds to the allegations of manipulation of electoral rolls by ECI. Similar claims of voter roll manipulation including duplicate and bulk registrations have been seen in the past, which undermines the credibility of ECI.

Way Forward

Recommendations of 255th Law Commission Report (2015):

Need for Parity in the removal process of Election Commissioners.
EC’s expense to be charged on Consolidated Fund of India to ensure financial autonomy.
Separate and Independent Secretariat: Having powers to appoint, transfer and promote its staff and officers. This will insulate personnel from executive and political interference.
Collegium based Appointment: Appointment of all the ECs, including CEC, should be made by the President in consultation with a three-member collegium or selection committee, consisting of Prime Minister; Leader of the Opposition of the Lok Sabha (or the leader of the largest opposition party in the Lok Sabha) and the Chief Justice of India.
Elevation of an Election Commissioner should be on the basis of seniority - unless the three member collegium/committee, for reasons to be recorded in writing, finds such Commissioner unfit.
EC must have power to de-register political parties.
Common Electoral Roll for Parliament, Assembly and Local Elections: This will avoid duplicity of effort and resources by EC and SEC.