Economy

Govt Raises MSP for Six Rabi Crops

Context: The Union Cabinet has approved significant hikes in the Minimum Support Prices (MSPs) for six rabi crops for the 2026–27 marketing season, aimed at ensuring remunerative prices to farmers and promoting crop diversification.

What is MSP?

  • MSP is the minimum guaranteed price at which the government procures crops from farmers, protecting them from distress sales.
  • It currently covers 23 crops: 7 cereals, 5 pulses, 7 oilseeds, and 4 commercial crops.
  • The policy serves as a tool for ensuring food security, farmer welfare, and market stability.

Key Highlights of the Hike

  • Crops Covered: Wheat, barley, jowar, gram, lentil, and safflower.
  • Wheat: MSP increased by ₹160 per quintal to ₹2,585/quintal (6.6% rise), offering the highest gain over cost of production (109%).
  • Safflower: Witnessed the highest absolute and percentage increase (₹600 per quintal), reflecting government emphasis on oilseed cultivation and crop diversification.
  • The hikes align with the government’s aim to double farmers’ income and reduce dependence on imported edible oils.
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How MSP is Determined

  • Commission for Agricultural Costs and Prices (CACP):
    • A statutory body set up in 1965 under the Ministry of Agriculture.
    • Recommends MSPs twice a year (for kharif and rabi crops).
    • Recommendations are not binding; final approval rests with the Cabinet Committee on Economic Affairs (CCEA).
  • Factors Considered:
    • Cost of cultivation (A2, A2+FL, C2).
    • Demand-supply situation.
    • Price trends and inter-crop parity.
    • Terms of trade for farmers.
    • Global prices and food security concerns.
  • Cost Concepts:
    • A2: Actual paid-out costs (seeds, fertilizers, etc.).
    • A2+FL: A2 + imputed family labour.
    • C2: Comprehensive cost (A2+FL + rental value of land + interest on capital).
  • MSPs are generally fixed at A2+FL + 50% margin, ensuring fair returns.

Significance

  • Enhances farmers’ income security and incentivizes crop production.
  • Encourages oilseed production, reducing edible oil import bills.
  • Balances inflation control with farmer welfare.
  • Strengthens food security by ensuring procurement at fair prices.

Challenges Ahead

  • Procurement is still concentrated in wheat and rice, limiting benefits for other crops.
  • Rising MSPs can strain the fiscal burden.
  • Market reforms and diversification efforts need to complement MSP to achieve sustainable outcomes.

Conclusion

The recent MSP hike reflects the government’s continued focus on farmer welfare, crop diversification, and self-reliance in agriculture. However, structural reforms in procurement, storage, and marketing remain crucial to ensure that the benefits of MSP reach all farmers equitably.

RoDTEP Scheme Extended till March 2026

Context: The Government of India has extended the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme until March 31, 2026, ensuring continued support to exporters amidst global trade challenges.

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About the RoDTEP Scheme

  • Launched: January 1, 2021 (through amendment in Foreign Trade Policy 2015–20).
  • Objective: To neutralize the impact of non-refundable taxes, duties, and levies embedded in exported goods.
  • Why Needed: Exporters incur costs such as state levies, power duties, mandi taxes, and embedded central taxes, which were not refunded earlier.
  • WTO-Compliant: Replaced the Merchandise Export Incentive Scheme (MEIS) after it was challenged by the US at WTO.
  • Administered By: Department of Revenue, Ministry of Finance.

Key Features

  1. Coverage:
    • All sectors eligible.
    • Priority given to labour-intensive sectors (textiles, agriculture, leather, etc.).
    • Applies to manufacturer exporters, merchant exporters (traders), SEZ units, EOUs, and e-commerce exports.
  2. Exclusions:
    • Re-exported products not eligible.
  3. Reimbursement Mechanism:
    • Provided as a percentage of FOB (Freight on Board) value of exports.
    • Issued in the form of transferable e-scrips (maintained in CBIC’s electronic credit ledger).
    • e-scrips can be used for paying basic customs duty or transferred to other importers.
  4. Digital Implementation:
    • Entirely IT-driven to ensure transparency, speedy clearance, and minimal human intervention.
    • Monitored via IT-based risk management system with audit provisions.

Significance

  • Reduces hidden tax burden on exporters.
  • Enhances global competitiveness of Indian goods.
  • Encourages manufacturing and promotes “Make in India” exports.
  • Helps India remain aligned with WTO norms while protecting domestic industry.

Way Forward

  • With the scheme extended till 2026, exporters now have policy certainty.
  • Government focus is likely to remain on simplification of refunds, expansion of product coverage, and ensuring quick digital disbursements to sustain India’s export momentum.

PNGRB Proposes LPG Interoperability Framework

Context: The Petroleum and Natural Gas Regulatory Board (PNGRB) has proposed an interoperable LPG delivery system to address the growing challenge of delayed cylinder deliveries. The move aims to enhance consumer convenience and strengthen India’s energy service delivery mechanism.

Key Features of the Proposal

  • 24-Hour Delivery Mandate: If a distributor fails to deliver a refill within 24 hours of booking, the order will be rerouted to the nearest available distributor, irrespective of the oil marketing company (OMC).
  • Cross-OMC Flexibility: Customers of IOC, BPCL, or HPCL can receive a refill from any nearby distributor, effectively merging three separate delivery silos into a unified national LPG supply network.
  • Phased Rollout: The framework will begin with pilot projects in select urban and rural areas to test coordination and technology systems before nationwide implementation.

Rationale Behind the Proposal

  • Delivery Complaints: Around 1.7 million LPG-related grievances are filed annually, with nearly half linked to delayed refills.
  • Focus Shift: With 32 crore domestic LPG connections and near-universal coverage achieved, the challenge is no longer access but timely and reliable service.
  • Universal Service Obligation: As all three OMCs operate under the Ministry of Petroleum and Natural Gas (MoPNG) and sell LPG at uniform subsidised prices, interoperability aligns with their common mandate to ensure uninterrupted household fuel access.

Petroleum and Natural Gas Regulatory Board (PNGRB)

  • Statutory Body: Established under the PNGRB Act, 2006, headquartered in New Delhi.
  • Nodal Ministry: Ministry of Petroleum and Natural Gas.
  • Composition: Chairperson, one legal member, and three other members, appointed by the Centre for five years or until the age of 65.
  • Functions: Regulates refining, storage, transportation, distribution, marketing, and sale of petroleum products and natural gas (excluding crude oil and production).
  • Powers: Adjudicate disputes, levy fees, maintain databanks, conduct inquiries, and recommend policies.
  • Appeals: Decisions can be challenged before the Appellate Tribunal for Electricity.

Significance of the Proposal

  • Consumer-Centric Reform: Ensures faster deliveries and reduces reliance on a single distributor.
  • Efficiency & Competition: Encourages better performance among distributors by eliminating monopolistic silos.
  • Digital Integration: Pushes for advanced IT systems to seamlessly transfer bookings across OMCs.
  • Strengthening Energy Security: Builds a more resilient and responsive LPG supply chain.

Challenges Ahead

  • Operational Coordination: Requires robust digital infrastructure and real-time inventory tracking across companies.
  • Accountability & Monitoring: Clear mechanisms must be in place to prevent mismanagement and ensure transparency.
  • Pilot to Scale: Lessons from pilot projects must be carefully integrated before nationwide rollout.

L1 vs H1B Visa Comparison: The Other Work Visa for the US

Context: The United States is still a popular place for skilled foreign workers to go, especially those from India. The H1B visa has always been the most popular way to get to the US. But things have changed recently, like a big fee increase for H1B applications in September 2025. Now, the L1 visa is getting more attention as a way for employees to move within the same company.

What does the H1B Visa mean?

  • Nature: A non-immigrant work visa that lets US companies hire foreign workers for jobs that require a lot of technical skill.
  • Requirements: Foreign professionals must have at least a bachelor's degree (or the equivalent) in a specific field.
  • Cap and Lottery System: There are 65,000 visas available each year, plus 20,000 more under the master's cap. Very competitive, chosen by lottery.
  • Validity: The first three years, with the option to extend for up to six years.
  • Employer Tied: Needs the employer's support and approval of the working conditions.

What does the L1 Visa mean?

  • Nature: This is a non-immigrant visa for managers, executives, or specialized knowledge staff who are moving from a foreign office to a US office of the same company.
  • Requirements: The employee must have worked in the foreign office for at least one year in a row in the last three years.
  • No Cap: The L1 visa does not have a yearly number limit like the H1B visa does.
  • Validity: L1A (Managers/Executives): Up to 7 years.L1B (Specialized Knowledge): Up to 5 years.
  • Specific to the employer: Limited to the same group of companies, can't easily switch jobs.

Important Differences: L1 vs. H1B

FeatureH1B VisaL1 Visa
PurposeEmployment in specialty occupationsIntra-company transfer
Cap65,000 + 20,000 (lottery)No cap
EligibilityBachelor’s degree or higher in relevant field1 year employment in company abroad (past 3 years)
SponsorshipAny US employerSame company with US & foreign offices
Validity3 years, extendable to 6L1A: 7 years, L1B: 5 years
Green Card PathwayPERM labour certification routeL1A offers smoother EB-1C pathway
L1 Vs H1B visa comparison

What this means for India

  1. Indian IT Sector: Indian IT companies like TCS, Infosys, and Wipro use L1 a lot to move employees without using the lottery system.
  2. Pressure to Raise Fees: The increase in H1B fees in 2025 (about $100,000 for each new petition) may make Indian companies use L1 visas more often.
  3. Impact on Migration Policy: This gives India another way to keep its large skilled diaspora in the US, even with strict H1B rules.
  4. Diplomatic Angle: Visa rules are a common source of tension in talks about trade and strategic partnerships between India and the US.

The Way Forward

  • Policy Engagement: India needs to keep pushing for a US visa system that is more predictable and less strict.
  • Diversifying skills: Indian companies can use both H1B for new hires and L1 for moving employees around within the company.
  • Long-Term Strategy: Making the innovation and startup ecosystems in the US stronger so that they don't rely too much on US visa rules.

RBI’s Inflation Targeting Framework and the Debate on Continuity

Context: The existing flexible inflation targeting framework of Reserve Bank of India (RBI) is set to expire in March 2026. RBI had sought views from economists, market participants and other stakeholders on whether the current target, band, and measure should continue. Most respondents back the continuation of the existing structure. 

Relevance of the Topic: Prelims: Key Features of the 2015 Monetary Policy Framework. 

The monetary policy framework in India has evolved over the years. From relying on multiple indicators such as money supply and wholesale prices, the RBI shifted its focus to retail inflation in 2014. 

In February 2015, a new Monetary Policy Framework Agreement was signed between the Government of India and the RBI, which institutionalised inflation targeting in India.

Key Features of the 2015 Monetary Policy Framework

  • The primary objective of monetary policy is to maintain price stability while keeping in mind the objective of growth.
  • The framework is operated by the RBI, which uses instruments such as the repo rate to achieve the target.
  • The inflation target is fixed at 4% CPI inflation, with a tolerance band of +/-2 % (2-6%).
  • The inflation target is decided by the Government of India in consultation with the RBI, and is to be set once every five years. The current target has been notified till March 31, 2026.
  • The relevant measure of inflation is the Consumer Price Index (CPI-Combined) published by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation. 
  • The RBI is deemed to have failed in its mandate if inflation remains above 6% or below 2% for three consecutive quarters.
  • In case of such failure, the RBI must submit a written report to the Government explaining the reasons for the failure, remedial measures, and the time frame within which inflation will be brought back to the target.

Role of the Monetary Policy Committee (MPC)

  • The MPC was constituted in 2016 as a statutory body to set the policy repo rate required to achieve the inflation target.
  • It comprises six members: RBI Governor (Chairperson), the Deputy Governor in charge of monetary policy, one RBI officer nominated by the RBI Board, and three external members appointed by the Government.
  • Decisions are taken by majority vote, with the Governor having a casting vote in case of a tie.
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Performance of the Flexible Inflation Targeting (FIT) Regime (2016-2025)

  • Inflation has declined significantly since the adoption of FIT: from nearly 10% in 2012-13, CPI inflation is projected to average 3.1% in 2025-26, the lowest in the FIT era.
  • The framework has anchored inflation expectations of households and markets, thereby improving monetary policy credibility.
  • It has enhanced macroeconomic stability by reducing uncertainty for consumers and investors.
  • Low and stable inflation has supported sustainable growth, as extreme price fluctuations erode consumer purchasing power and discourage investment.
  • India’s adoption of FIT has brought it in line with global best practices, where most modern central banks follow inflation targeting frameworks.

Review of Flexible Inflation Targeting (FIT) Regime: 

The FIT regime requires a review every five years. The current review must be completed by March 2026. The RBI’s recent discussion paper has sought comments on key issues:

  • Whether monetary policy should target headline inflation or core inflation.
  • Whether the 4% inflation target remains optimal.
  • Whether the tolerance band (2-6%) should be revised.
  • Whether the target should be a point (4%) or a range only.

Former members of the Monetary Policy Committee (MPC) are largely in favour of retaining the targets as per the existing Flexible Inflation Target (FIT) regime and want to continue to focus on keeping headline Consumer Price Index (CPI) inflation at 4% in the medium term.

Also Read: Time to Review Inflation Targeting 

The problem with Low Inflation 

Context: Inflation in India has fallen sharply in recent months. CPI inflation was at just 2.07% in August 2025 and WPI inflation at 0.52%. While this trend is positive for consumers, it poses challenges for the Union Government’s fiscal arithmetic and Budget management.

Relevance of the Topic: Prelims: Concept of Inflation; Low Inflation: Issues and Implications.

Inflation refers to the sustained rise in the general price level of goods and services. While high inflation erodes purchasing power, moderate inflation is considered desirable as it supports growth and helps maintain fiscal balance. 

However, persistently low inflation, as seen in India in 2025 with CPI inflation at 2.07% and WPI inflation at 0.52%, poses distinct challenges for the economy and government finances.

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Issues with Low Inflation

  • Slower Nominal GDP Growth: The government’s fiscal calculations depend on nominal GDP, which includes both real growth and inflation. With prices barely rising (stagnant) due to lower inflation, nominal GDP growth has slowed falling below the 10.1% assumed in the Union Budget 2025-26.
  • Weaker Tax Revenues: Tax collections are directly linked to nominal GDP growth. Lower inflation means slower growth in the value of goods and services i.e., weak GST and excise revenues. In April-July 2025, gross tax revenue grew by only 1% year-on-year, while net tax revenue declined by 7.5%.
  • Fiscal Deficit Ratios Under Strain: The fiscal deficit and debt are measured as a share of nominal GDP. With a lower GDP base, deficit and debt ratios look worse even if the government’s borrowing remains constant. This risks India’s FRBM targets (3% fiscal deficit in the medium term, 60% debt-GDP ceiling).

Implications of Persistently Low Inflation: 

  • Budgetary Stress: Lower tax revenues make it harder for the government to meet Budget targets and maintain fiscal discipline. Budget credibility is undermined if revenue projections repeatedly fall short.
  • Borrowing vs. Spending Cuts: The government may struggle to meet its revenue targets, which could force either higher borrowing or cuts in planned spending.
  • Weak Demand and Employment: Persistently low inflation often reflects weak demand, which can delay job creation and wage growth.
  • Discouraged Private Investment: Weak demand discourages private investment despite high corporate profits.
  • Vicious Cycle Risk: In the long run, prolonged low inflation can create a vicious cycle of weak demand, lower revenues, and constrained fiscal space.
  • Monetary Policy Challenge: RBI has an inflation targeting mandate (4% ±2%). Too-low inflation limits its ability to cut rates (real interest rates rise when inflation falls).
  • Agricultural distress: India’s CPI is food-heavy (~45%). Weak food inflation reflects rural distress and falling farm incomes.

Is Low Inflation always Bad?

  • Low inflation is not always harmful. If it is driven by productivity gains, technological innovation or supply-side efficiencies, it benefits consumers by reducing costs without damaging fiscal health.
  • If caused by weak demand and poor investment sentiment or agricultural distress, it signals structural weakness, reduces revenues, squeezes fiscal space, and slows down both growth and revenues.

For sustainable growth, India requires moderate inflation driven by healthy demand and productivity improvements. 

Why does India not import corn from the US?

Context: The US Commerce Secretary has questioned India for not opening up its market to American Corn. Differences over agricultural trade is at the heart of the trade dispute between India and the US.

Relevance of the Topic: Prelims: India-US Trade dispute: Agriculture Sector 

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Why does India not import corn from the US? 

There are three reasons why India does not buy American Corn:

  • Self-sufficiency in Corn production: India produces around 34-36 million tonnes of corn annually, making it the world’s fifth-largest producer of corn. 
  • Concerns over GM Corn: The US grows more than 90% of its corn from GM seeds. However, India does not permit the cultivation or import of genetically modified food or feed (with the exception of GM cotton). 
  • Protect farmers’ interest:
    • India needs to protect its fragile agricultural sector that employs 500 million people against imports from countries that heavily subsidise their agriculture. Allowing cheaper GM imports would undercut Indian farmers. 
    • Smallholders (backbone of India’s agricultural economy) fear that allowing GM corn would open the gates to multinational corporations controlling seed markets. Dependence on patented seed technology could erode centuries-old practices like seed saving, while also raising questions of consumer safety and environmental impact. 

Reasons the US is exploring alternate markets:

  • China has been a major buyer of US corn, taking nearly a third of America’s exports. After the recent US-China trade war, China has begun to buy corn and soyabeans from Brazil, throwing the US agriculture sector into a crisis.
  • With India’s rising corn consumption (particularly for ethanol-blended petrol programme), the US sees an enormous opportunity to export corn to India. 

Increased demand for corn in India:

  • Traditionally, corn is consumed into poultry feed, starch, and processed foods. 
  • In recent years, a growing share has been diverted toward ethanol production. In the latest cycle, India used 3.5 million tonnes of corn to produce around 1.35 billion litres of ethanol. 
  • With the government pushing for 20% ethanol blending in petrol by 2025-26, annual corn demand for biofuel alone could rise to 6-7 million tonnes.
  • In 2024-25, India imported 0.97 million tonnes of corn (most of which came from Myanmar and Ukraine which export non-GM corn that meets Indian standards). The imports from the US were miniscule (just 1100 tonnes). Thus, there is some scope for corn imports from the US for use in producing ethanol. 

However, importing GM corn even for ethanol production has been firmly rejected, with sugar mills and farmer unions warning it could marginalise sugarcane and disrupt the ethanol-blended petrol programme. 

Also Read: US’s Tariffs: Nature, Impacts, and Lessons for India 

The dispute reflects not just trade imbalances but a deeper clash over farming practices, food security, and agricultural sovereignty.   

India gets licence to explore Indian Ocean for Polymetallic Sulphides

Context: India has bagged a 15-year contract for exploration of polymetallic sulphides in the northwest Indian Ocean from the International Seabed Authority (ISA). 

Relevance of the Topic:Prelims: Key facts about Polymetallic Sulphides; International Seabed Authority; Carlsberg Ridge. 

Licence to explore Indian Ocean for Polymetallic Sulphides: 

  • This is the first licence granted globally for exploring polymetallic sulphur nodules in the Carlsberg Ridge. 
  • The contract area covers 10,000 sq. km. in parts of the Carlsberg Ridge in the Indian Ocean.

Polymetallic Sulphides Nodules: 

  • PMS nodules are hydrothermal mineral deposits or concentrations of rock found in the deep ocean (mid-ocean ridges and hydrothermal vents). 
  • They form when hot, mineral-rich fluids from the Earth's mantle mix with cold ocean water, resulting in the precipitation of metal sulphides. 
  • These metalliferous muds contain large amounts of copper, zinc, lead, iron, silver and gold. 
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Carlsberg Ridge: 

  • The Carlsberg Ridge is 3,00,000 sq. km. stretch that lies in the Indian Ocean, specifically in the Arabian Sea and northwest Indian Ocean. 
  • It forms the boundary between the Indian and Arabian tectonic plates.
  • The ridge separates the Arabian Sea to the northeast from the Somali Basin to the southwest.
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Key facts about Exploration Process: 

  • For exploration in areas part of the ‘high seas’ or part of the ocean not part of their territories, countries must obtain permission from the International Seabed Authority (ISA).
  • These rights are specifically designated for regions within the open ocean defined as marine expanses encompassing the air above, surface, and seabed; where no nation holds sovereignty claims.
    • Countries have exclusive rights extending up to 200 nautical miles from their borders, including the underlying seabed. 
    • Countries can claim up to 350 nautical miles from their coasts as their continental shelf. Countries in the Bay of Bengal can claim up to 500 nautical miles as per the United Nations Convention on the Laws of the Sea (UNCLOS).
  • If the claim is approved, the country gains priority to explore and potentially exploit both living and non-living resources in the designated region. 

About International Seabed Authority: 

  • Autonomous international organisation established under the 1982 United Nations Convention on the Law of the Sea (UNCLOS). 
  • It is the organisation through which States Parties to UNCLOS organise and control all mineral-resources-related activities in ‘the Area’ for the benefit of humankind as a whole. 
  • The international seabed area represents around 50% of the total area of the world’s oceans.
  • ISA has the mandate to ensure the effective protection of the marine environment from harmful effects that may arise from deep-seabed-related activities. 
  • All States Parties to UNCLOS are members of ISA (including India). 
  • Headquarters: Kingston, Jamaica 

India’s third exploration contract with ISA: 

  • The contract is India’s third exploration contract with the ISA and is its second for PMS.
    • India had exploratory rights from the ISA in the Central Indian Ocean Basin (till 2027). 
    • India had obtained exploratory rights for polymetallic sulphides in the Indian Ocean Ridge (2031).
  • India has become the first ISA Member State to hold two contracts for PMS exploration and to have the largest area allocated in the international seabed area. 

India continues to conduct its exploration activities in areas beyond national jurisdiction strictly within the framework of the UNCLOS and under the mandate of ISA. 

Women’s Economic Empowerment Index

Context: India aspires to become a $30 trillion economy by 2047, but women who constitute nearly half the population contribute only 18% to the GDP. Their invisibility in data makes gender-disaggregated data crucial for inclusive growth.

Relevance of the topic:

Prelims: Gender budgeting, WEE Index (Uttar Pradesh)

Mains: Role of gender data in inclusive growth, governance reforms, women’s economic empowerment.

Almost 196 million employable women in India are outside the workforce. The biggest barrier to women’s economic empowerment is not merely the lack of opportunities but their invisibility in data. Without gender-disaggregated data their participation gaps across education, skilling, employment, and entrepreneurship will remain stalled. 

Women’s Economic Empowerment Index: 

  • The WEE Index was recently launched by Uttar Pradesh. It aims to track the impact of government schemes on women's economic participation across all 75 districts of the state.
  • It is India’s first district-level tool to track women’s participation across five economic levers:
    • Employment
    • Education and skilling
    • Entrepreneurship
    • Livelihood and mobility
    • Safety and inclusive infrastructure
  • The index shifts focus from participation numbers to structural barriers that limit women’s empowerment. E.g., Data showed women dominate skilling enrolments but remain very low in entrepreneurship due to poor access to credit. 

Why Gender Data is Needed?

  • Inclusive Growth: Inclusive economic growth cannot occur if half the population remains invisible in policy datasets. Gender-disaggregated data ensures women’s contribution is measured, valued, and integrated into growth strategies.
  • Making Gaps Visible: Without a gender lens, existing indices on health, economy, and infrastructure mask inequities. Data reveals critical drop-off points such as high female dropout rates after Class 12 and post-graduation, or the gap between skilling enrolment and entrepreneurship.
  • Catalyst for Reforms: Visibility of inequities prompts departments to act. E.g., In Uttar Pradesh, data on low female representation among bus drivers and conductors, led to new recruitment strategies and women-friendly infrastructure such as women’s restrooms in bus terminals.
  • Shifting beyond Participation Rates: Gender data helps track retention, leadership roles, re-entry into work, and quality of employment, not just surface-level participation. It highlights systemic barriers such as limited access to credit for women entrepreneurs despite high skilling enrolments.
  • To improve Gender Budgeting: Gender budgeting is often confined to welfare schemes or finance departments. True gender budgeting requires applying a gender lens to every rupee spent in sectors like education, infrastructure, energy, and housing, and this is only possible if robust gender-disaggregated data exists.
  • Guiding Policy and Investment: Data makes it possible to design district-wise gender action plans, guiding budget allocations and infrastructure priorities.

A robust framework such as the WEE Index can be replicated and scaled in other states as well. It can help the states translate intent into implementation: turning data into district-wise gender action plans that guide budget allocations, infrastructure priorities and programmatic reforms.

Also Read: Budgeting for a gender-inclusive ‘Viksit Bharat’ 

Delhi-Meerut Namo Bharat RRTS Corridor

Context: The Namo Bharat Regional Rapid Transit System (RRTS) corridor between Delhi and Meerut is nearing full operationalisation.

Relevance of the Topic : Prelims: Key Features of Delhi-Merrut Namo Bharat Regional Rapid Transit System (RRTS)

Delhi-Meerut Namo Bharat Regional Rapid Transit System

  • The Delhi-Meerut Namo Bharat RRTS is India’s first regional rapid rail project.
  • The Namo Bharat corridor is the first of several RRTS lines planned to connect parts of the National Capital Region.
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Key Features: 

  • The Delhi-Meerut corridor covers a total length of 82 kilometres.
  • The corridor will enable passengers to travel from Sarai Kale Khan in Delhi to Meerut in under one hour.
    • At present, a 55-kilometre stretch from New Ashok Nagar on the Delhi border to Meerut South is operational. The remaining stretch will be inaugurated soon.
  • The trains are capable of reaching a top operational speed of 160 kilometres per hour.
  • The project has been developed at a cost of over ₹30,000 crore.
  • The system has been implemented by the National Capital Region Transport Corporation (NCRTC).

Benefits and Significance: 

The corridor currently sees a daily ridership of 60,000 and once fully operational it is expected to take one lakh cars off the road.

  • Expected to reduce travel time and ease congestion between Delhi and nearby urban centres.
  • Reduce air pollution and cut carbon emissions, thus contributing to sustainable mobility.

Incentive Scheme for Critical Mineral Recycling 

Context: Recently, the Union Cabinet has approved a Rs 1500 crore Incentive Scheme to develop recycling capacity in the country for the separation and production of critical minerals from secondary sources. 

Relevance of the Topic:Prelims: Key facts about Incentive Scheme for Critical Mineral Recycling. 

Incentive Scheme for Critical Mineral Recycling

  • Aim: To develop capacity to recycle battery waste and e-waste for extraction of critical minerals. 
  • This scheme is part of the National Critical Mineral Mission (NCMM) which is aimed at building the domestic capacity of and supply chain resilience in critical minerals. 
  • Tenure: 6 years from FY 2025-26 to FY 2030-31. 

Key Highlights of the Scheme: 

  • Eligible feedstock: e-waste, Lithium Ion Battery (LIB) scrap, and scrap other than e-waste & LIB scrap (E.g., catalytic convertors in end-of-life vehicles). 
  • Expected beneficiaries: Both large established recyclers and small new recyclers (including start-ups), for whom one-third of the scheme outlay has been earmarked. 
  • The scheme will be applicable to investments in new units as well as expansion of capacity / modernisation and diversification of existing units. 

Incentive Structure

  • Capex subsidy: 20% on plant, machinery, and utilities for units that start production within a set timeframe. Delays will attract lower subsidies.
  • Opex subsidy: Linked to incremental sales over the FY 2025-26 base year. Firms can claim 40% of eligible Opex in the second year, and 60% in the fifth year, subject to meeting sales thresholds.
  • Subsidy limits: Maximum Rs 50 crore per large entity and Rs 25 crore per small entity, with ceilings on Opex support at Rs 10 crore and Rs 5 crore respectively.

Expected Outcomes: 

  • Expected to develop at least 270 kilo ton of annual recycling capacity resulting in around 40 kilo ton annual critical mineral production.
  • Bringing in about Rs 8000 crore of investment and creating close to 70,000 direct and indirect jobs. 

Also Read: National Critical Mineral Mission 

The scheme is a prudent way to ensure supply chain sustainability in the near term through the recycling of secondary sources.

Integrated Agriculture: Lavender Honey and Apiculture 

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

Relevance of the topic:

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

Mains: Integrated Agriculture: Apiculture & Floriculture.

Lavender Honey

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

About Lavender

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

Benefits of cultivating Lavender: 

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

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

CSIR Floriculture Mission: 

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

Beekeeping/ Sweet Revolution

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

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

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

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

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