Government Schemes & Policies

FRA Cells to speed up Forest Rights Implementation

Context: The Central government has sanctioned over 300 FRA Cells to facilitate the implementation of the Forest Rights Act, 2006 across 18 states and UTs. 

Relevance of the Topic: Prelims: Key Features of FRA Cells, FRA 2006, DAJGUA.

Pending Forest Rights Claims

  • According to the March 2025 progress report, about 14.45% of the 51.11 lakh forest rights claims filed under the Forest Rights Act (FRA), 2006 across 21 States/UTs still remain pending. 
  • Even among the 43 lakh disposed claims, over 42% have been rejected indicating serious issues in the implementation process.

To address these long-standing delays and rejections, the Union government has sanctioned over 300 FRA Cells across 18 states & UTs. 

About Forest Right Act 2006

  • Also known as Schedule Tribes and Other Traditional Forest Dwellers Act.
  • The act recognises and vests the forest rights and occupation in Forest land in Forest Dwelling Scheduled Tribes (FDST) and Other Traditional Forest Dwellers (OTFD) who have been residing in such forests for generations.

The Act identifies Four Types of Rights: 

  • Title rights: Gives FDST and OTFD, the right to ownership of land farmed by tribals or forest dwellers subject to a maximum of 4 hectares. Ownership is only for land that is being cultivated by the concerned family and no new lands will be granted. It also provides for Community rights over minor forest produce and other resources.
  • Use rights: The rights of the dwellers extend to extracting Minor Forest Produce, grazing areas, pastoralist routes, etc.
  • Relief and development rights: To rehabilitation in case of illegal eviction or forced displacement and to basic amenities, subject to restrictions for forest protection.
  • Forest management rights: It includes the right to protect, regenerate or conserve or manage any community forest resource  which they have been traditionally protecting and conserving for sustainable use.

Key Facts: 

  • The Act recognises both individuals and community rights. 
  • The decision and declaration of Habitat rights under FRA is in the jurisdiction of the Ministry of Tribal Affairs.
  • The claim needs to be approved by the Gram Sabha. The decision of the Gram Sabha to reject or allow the claim can be appealed before court.

About FRA Cells

  • FRA Cells are created in districts and states to assist in implementing the Forest Rights Act, 2006, law meant to give forest rights to Scheduled Tribes and forest-dwelling communities.
  • This is being done under a new scheme called Dharti Aba Janjati Gram Utkarsh Abhiyaan (DAJGUA ). 

Key details about FRA Cells: 

  • Until now, implementation of the FRA, has been the domain of State and Union Territory governments who were supposed to form local committees like Gram Sabhas, Sub-Divisional Level Committees (SDLCs), District Level Committees (DLCs), etc., to process land claims.
  • Now, under DAJGUA, 324 district-level FRA cells and 17 state-level FRA cells have been approved. The rules governing the operation of these cells flow from the DAJGUA programme and not the principal legislation of the FRA. 
  • FRA Cells are meant to help tribal people and Gram Sabhas prepare documents, manage data, and push pending claims, not to interfere in decision-making. 
  • The highest number of district FRA cells are sanctioned in Madhya Pradesh (55), followed by Chhattisgarh (30), Telangana, Maharashtra, Assam, and Jharkhand. 
  • Though FRA cells function under state machinery as per DAJGUA rules, they are centrally funded through Grants-in-Aid General, as seen in sanction orders for states like Assam, Himachal Pradesh, and Odisha. The guidelines provide a budget of ₹8.67 lakh for each FRA cell at the district level, and ₹25.85 lakh for each State-level FRA cell.

Dharti Aba Janjati Gram Utkarsh Abhiyaan (DAJGUA): 

  • A central sector scheme launched in October 2024. 
  • Purpose: To Improve tribal welfare across 68,000 tribal-dominated villages by bringing together 25 interventions of 17 line ministries. 
  • One component of the DAJGUA programme is to speed up FRA implementation.

Concerns: Forest rights activists and experts have raised concerns of FRA Cells being a parallel FRA mechanism outside of FRA’s purview and that it could weaken community control.

Govt. eases procurement norms for Research Labs

Context: The government has relaxed procurement rules for scientific institutions, allowing faster and more flexible access to high-quality research equipment.

Relevance of the Topic: Mains: Supporting R&D in India: significance of new procurement reforms.

Amid complaints from scientists on sub-standard equipment affecting their research, the Finance Ministry issued a circular allowing select institutions to buy equipment outside the GEM portal.

Key Reforms

Bypassing GEM Portal: 

  • Existing rules required all government purchases- from laptops to furniture to be made with the cheapest vendor identified through the Government e-marketplace (GEM) portal. GEM is an initiative of the Ministry of Commerce to prioritise made-in-India equipment.
  • Updated rules allow Directors of select institutes and Vice-Chancellors or Chancellors of universities to procure equipment outside the GEM portal, as it was unable to meet the requirement of high quality customised equipment needed by scientists.

Autonomy in Global Tenders:  

  • Updated rules allow the heads of scientific institutions to approve global tender enquiry up to ₹200 crore. 
  • Earlier, departmental Secretaries  were required to issue such clearances. This usually led to a pile-up of requests and concomitant procurement delays.

Increased Purchase Limits: 

  • Updated rules have doubled the ceiling on goods that can be procured by scientific departments without quotations from ₹1 lakh to ₹2 lakh.

However, all of these concessions are strictly for scientific equipment and consumables, and meant only for: Organisations affiliated to the Ministry of Science and Technology, Council of Scientific and Industrial Research, Department of Atomic Energy and Space, Indian Council of Medical Research, Indian Council for Agricultural Research and educational institutions conducting postgraduate research under various Ministries.

Significance of easing the rules for procurement: 

The reforms are being hailed as a landmark decision as reforms would: 

  • Enhance autonomy and flexibility for research institutions empowering them to innovate faster.
  • Speeds up procurement for time-sensitive research.
  • Ensures quality by allowing global sourcing.
  • Reduces bureaucratic delays and red tape.

National Scheme for Upgradation of ITIs

Context: The Union Cabinet has approved the scheme for upgradation of 1,000 government Industrial Training Institutes (ITIs), and the setting up of five National Centers of Excellence (NCOE) as a Centrally Sponsored Scheme for transforming vocational education in India.

Relevance of the Topic:Prelims: Key facts about National Scheme for Upgradation of ITIs and setting up of National Centres of Excellence. 

National Scheme for Upgradation of ITIs and setting up of National Centres of Excellence:

  • Initiative of: 
  • Centrally Sponsored Scheme. 
  • Outlay: Rs. 60,000 crore (Central Share: Rs 30,000 crore, State Share: Rs 20,000 crore and Industry Share: Rs 10,000 crore). Additionally, 50% of the central share will be co-financed equally by the Asian Development Bank and the World Bank.
  • The scheme will focus on:
    • Upgradation of 1,000 Government ITIs in hub and spoke arrangement with industry aligned revamped trades (courses)
    • Capacity Augmentation of 5 National Skill Training Institutes (NSTIs) and setting up of 5 National Centres of Excellence for Skilling in these institutes.

Key Focus Areas: 

  • Position existing ITIs as government-owned, industry-managed aspirational institutes of skills, in collaboration with State Governments and industry. 
  • Adopt an industry-led Special Purpose Vehicle (SPV) model for an outcome-driven implementation strategy, making it distinct from previous efforts to improve the ITI ecosystem.
  • Skill 20 lakh youth through industry-aligned training programs over a five-year period. Ensure alignment between local workforce supply and industry demand, thereby facilitating industries, including MSMEs, in accessing employment-ready workers.
  • Strengthen Training of Trainers by upgrading infrastructure in the five NSTIs and offering pre-service and in-service training to 50,000 trainers. This is to enhance the quality and consistency of vocational education.

Background: Need for upgrading Industrial Training Institutes (ITIs): 

  • ITIs have been the backbone of vocational education and training in India, operating under State Governments. ITI network has expanded by nearly 47% since 2014, reaching over 14,600 across India, with over 14 lakh enrolment. However, vocational training via ITIs has suffered from lack of systemic interventions to improve their infrastructure, course contents, and remains less aspirational. 
  • India has only 42% of Indian graduates considered employable. Hence there is an urgent need for aligned government, academia, and industry action. By upgrading ITIs and embedding on-the-job learning, soft skills, and future capabilities like green and digital skills, India can unlock its talent potential. 

The schemes are a significant step towards revamping vocational education and bridging the critical skill-employability gap across sectors. 

Greenhouse Gases Emissions Intensity Target Rules 2025

Context: The Ministry of Environment, Forest and Climate Change (MoEFCC) notified draft Greenhouse Gases Emissions Intensity (GEI) Target Rules 2025. The rules introduce targets for the reduction of greenhouse gas (GHG) emissions by “obligated entities” in energy-intensive sectors and industries.

Relevance of the Topic: Prelims & Mains: Greenhouse Gases Emissions Intensity (GEI) Target Rules, 2025. 

  • The draft rules mark a critical development in India’s climate policy and its ongoing commitment to the Paris Agreement. 
  • They lay the foundation for operationalising the Carbon Credit Trading Scheme (CCTS), 2023, by setting specific emission intensity reduction targets for high-emission industries.

What is Greenhouse Gas Emissions Intensity (GEI)?

  • Greenhouse Gas Emissions Intensity refers to the amount of GHG emissions per unit of product output.
  • It is measured in tCO₂e (tonnes of carbon dioxide equivalent) per equivalent unit of output, taking into account all major greenhouse gases, such as: Carbon dioxide (CO₂), Methane (CH₄), Nitrous oxide (N₂O), Ozone (O₃), Fluorinated gases like CFCs and HCFCs.
  • The aim is to assess and reduce emissions without necessarily lowering total production, thus enabling sustainable economic growth.

Key Features of the Draft GEI Target Rules, 2025: 

1. Coverage and Scope:

  • GHG intensity reduction targets and benchmarks have been set for the highly energy-intensive aluminium, chlor-alkali, pulp and paper, and cement industries.
  • Applicable to over 280 industrial units across four energy-intensive sectors : Aluminium plants, Cement plants, Pulp and Paper plants, Chlor-alkali plants.
  • Among the large corporations that have been assigned targets under the rules are:  Vedanta, Hindalco, Bharat Aluminium, JSW Cement, Ultratech, Nalco, JK Cement, Dalmia Cement, Shree Cement, Grasim Industries, and JK Paper.

2. Baseline and Targets: 

  • The Rules set forth baseline emissions for 2023-24 and define gradual reduction targets for the years 2025-26 and 2026-27 as part of the mechanism to make India’s Carbon Credits Trading Scheme, 2023, operational.
  • The Rules also lay down the compliance mechanism for industries to comply with these targets, and specify penalties for their failure to do so.

3. Integration with Carbon Credit Trading Scheme (CCTS):

  • GEI targets define the emissions reduction goal for each industry. If an industry reduces its emissions intensity below the target, it earns carbon credits. These credits can be traded on the Indian Carbon Market, offering a financial incentive for industries to adopt clean technology.
  • Industries that fail to meet their targets must either buy carbon credits to offset the shortfall or face penalties imposed by the Central Pollution Control Board.
  • The Bureau of Energy Efficiency (BEE) oversees this trading process under the Ministry of Power. This system is based on international models like the Kyoto Protocol’s carbon market (Article 17) and similar schemes running in Europe and China.

The draft Rules make carbon trading operational by setting the standards that industries must meet to earn, sell, or buy carbon credits, thus turning climate responsibility into an economic opportunity. Targets have been set for the reduction of GHG emissions intensity for the first time.

image 19

Why are these rules important?

  • Meet India’s climate goals: To push industries towards a low-carbon growth trajectory through reduction, removal or avoidance of GHG emissions. E.g., use of biomass in cement kilns.
  • Meet India’s commitment under the Paris Agreement: To reduce the emissions intensity of its gross domestic product (the amount of energy used per unit of GDP) by 45% by 2030 compared to 2005 levels.

The draft GEI Target Rules, 2025, are a significant move towards operationalising India’s carbon market and achieving its climate goals.  

Surat Emissions Trading Scheme

Context: Experimental Evidence from the World's first market for trading in particulate matter emissions established in Surat, Gujarat has found that it has reduced pollution by up to 30% among participating industries, and also lowered the abatement costs.

Relevance of the topic:

Prelims: Key facts about Emissions trading scheme (ETS).

Mains: How trading in particulate emissions work?

Emissions Trading Scheme

  • Emissions trading scheme (ETS) or market is a regulatory tool to cut greenhouse gas emissions, while providing industries with financial incentives to comply with norms and to get them to invest in cleaner technology.
  • It is commonly referred to as ‘cap-and-trade’ to emission markets.

How does Emissions Trading Scheme work?

image 68
  • Cap Setting: Under ETS, regulators set a cap or a limit on the total emissions load that can be released into the air. 
  • Permit Allocation: Instead of enforcement through fines or show-cause notices, industries are given emissions permits or allowances, which can be traded among them to meet compliance. Each permit allows industries to release a specific quantity of pollution into the air, such as a kilogram of particulate matter pollution or a ton of carbon dioxide. 
  • Trading Mechanism: Plants with pollution-reducing technology save their permits and sell them to those who might need them to make up for their compliance gap. This way, plants with fewer resources get time to gradually shift to cleaner technology, while complying with a cap, and others earn through trading. A minimum floor price and maximum ceiling price are usually set to maintain stability and to keep the scheme attractive.
  • Compliance Monitoring: Industries that breach emission caps are penalised, usually on a per tonne cost basis. In some instances, they also have to surrender their permits. To ensure that emissions are reduced, regulators tighten emission caps and issue fewer permits as the ETS matures.
image 69

Surat Emissions Trading Scheme:  

  • Launched in: 2019.
  • It is the world's first ETS targeting particulate matter (PM).
  • The scheme was designed and developed by the Gujarat Pollution Control Board (GPCB), J-PAL, EPIC-India, and Yale University
  • The initiative represents a shift in India’s environmental governance from command-and-control models to market-based instruments.

How does the Surat ETS work ?

  • Cap: Initial cap on emissions was 280 tons/month of suspended particulate matter (SPM) which was later revised to 170 tons/month after real-time emission data was analysed through Continuous Emission Monitoring Systems (CEMS).
  • Permit: Each permit was equal to 1 kg of particulate matter emissions, and these permits were only valid during one compliance cycle which lasted 4 to 6 weeks. 80% permits are allocated for free, based on historical emissions and plant capacity while 20% permits are auctioned through a uniform price discovery mechanism.
  • Auction: A uniform price auction is conducted at the start of each cycle. Buyers and sellers submit bids, and a single clearing price is discovered. Permit prices were limited to between Rs 5 per kg (floor price) and Rs 100 per kg (ceiling price).  
  • Compliance: At the end of a compliance period, industries with sufficient permits to meet their emissions targets are said to comply. Plants posted a bond known as an Environmental Damage Compensation Deposit before the market began. Plants with insufficient permits were fined twice the ceiling price for every unit of emissions above their permits, the study stated. This fine is deducted from the bond.

Significance: It resulted in a 20–30% reduction in particulate pollution, demonstrating a cost-effective, flexible, and scalable alternative to conventional regulation.

Limitations: 

However, this approach suffers from three critical limitations : 

  • Resource Constraints: With thousands of polluting units and limited regulatory manpower, real-time monitoring and enforcement are often ineffective and delayed.
  • Uniform Compliance Burden: All industries regardless of their size, technological capacity, or financial strength are subject to the same norms, leading to disproportionate challenges for smaller or less-resourced units.
  • Regulatory Rigidity: There is little scope for flexibility or innovation. Compliance is rule-based rather than outcome-oriented, and often imposes high transaction costs.

ETS attempt to address these monitoring and enforcement gaps by bringing in more flexibility, and offering incentives for compliance.

Registration of Birth and Death in India

Context: Recently, the Office of the Registrar General of India (RGI), under the Ministry of Home Affairs, has issued a circular directing all public and private hospitals to report births and deaths within 21 days. This was in response to the persistent issue of under-reporting of births and deaths. 

Relevance of the Topic: Prelims: Key facts related to Registration of Births and Deaths Act, 1969. 

Registration of Birth and Deaths in India

  • Registration of births and deaths in India is regulated by the Registration of Births and Deaths Act, 1969. The Act is administered by the Registrar General of India.
  • Civil Registration System (CRS) is the administrative mechanism through which the RBD Act is implemented.

Key Provisions of the Registration of Births and Deaths Act, 1969:

  • All births and deaths must be registered within 21 days of occurrence.
  • The process of registration involves a hierarchy of Registrars:
    • Local Registrars appointed by state governments at the village, municipal, or ward level are responsible for actual registration of births and deaths and issuing certificates.
    • Chief Registrars appointed at the state/UT level supervise registration activities across the state and coordinate with local registrars and ensure compliance.
    • Registrar General of India (RGI) is responsible for national coordination, publishing vital statistics, and maintaining the central Civil Registration System (CRS) portal.
  • Under the CRS, controlled by the RGI, government hospitals have been entrusted with the responsibility of functioning as registrar. 

Registration of Births and Deaths (Amendment) Bill 2023: 

Registration of Births and Deaths Act 1969 was amended in 2023  to modernise, digitise, and centralise the system of civil registration in India. 

  • The amended Act mandated the digital registration of all births and deaths through the central Civil Registration System (CRS) portal. Data from CRS is used to update the National Population Register (NPR), Ration cards, Electoral rolls, and Property registration records.
  • It empowered the RGI to maintain a national database, and made it obligatory for Chief Registrars and local registrars to share real-time data with the Centre. 
  • The digital birth certificate becomes the sole and legally valid document for accessing various services such as school admission, passport application, voter registration, and marriage registration.
  • The penalties for negligence or delay in registration is ₹1000 under the Act. 

Challenges

  • Nearly 10% of births and deaths are not being registered, thus, undermining the goal of universal civil registration in India.
  • The Vital Statistics of India report has not been published since 2020.

Vital Statistics of India Report

  • The report is a compilation of all the vital statistics reports of state governments. It depicts data regarding infant mortality, still-birth and deaths at the national level.  It is published by the Registrar General of India. 
  • Such data is used by the government in socio-economic planning, to evaluate the effectiveness of various social sector programs and also serves as the cornerstone of the public health system. 

India needs a Comprehensive AI Policy

Context: As of 2024, over 85 countries, including China, Canada, South Korea, European Union, African Union etc. have released National AI strategy documents for regulation of Artificial Intelligence. However India adopts a flexible - mission mode approach lacking a Comprehensive AI policy to address emerging challenges associated with AI.

Relevance of the Topic: Mains: India’s Current AI regulations- its challenges and the need of a comprehensive AI policy.  

India’s Current Approach to AI Governance

AI's rapid growth poses profound ethical, legal, economic, and societal challenges, therefore the governance and regulation of AI have garnered significant global attention. India has adopted a mission-driven, flexible approach without formal legislative or strategic endorsement.

  • Absence of a National Strategy: India neither has an officially approved National AI Strategy document nor a law specifically regulating AI. 
  • NITI Aayog document titled ‘National Strategy for Artificial Intelligence’ from 2018 remains a recommendation without formal endorsement from the Government of India or an implementation plan or budget.
  • Mission-based framework: Instead, India has focused its resources on a government mission (IndiaAI Mission) which focuses on Innovation, Skill development, Trustworthy, safe AI ecosystem and several initiatives, such as a foundational AI model.
  • Expert Advisory Committee: An advisory group of experts is currently working to develop recommendations for governance frameworks that could be suitable for India. But there is limited clarity regarding whether these recommendations will be adopted into official governance policies or integrated as internal mechanisms.

Analysis of India's Approach

India's current approach has many benefits like the flexibility to adapt plans in response to the evolving nature of technologies, their adoption, geopolitics, economics, trade, and citizen sentiments. However this approach leaves significant gaps: 

  • It does not provide a comprehensive view of India’s vision, priorities, capacity, achievements, planned milestones, initiatives, or accountability mechanisms.
  • AI efforts lack institutional continuity or a constitutional mandate. Initiatives remain reactive and may or may not follow a planned trajectory towards the envisioned goals. 
  • Crucial sectors such as healthcare, education, banking, and governance are deploying AI tools without public transparency regarding their functioning or impact.
  • Absence of public awareness, civic dialogue, and oversight mechanisms on issues like algorithmic fairness, data origins, or labour disruptions heightens the risk of societal harm. 

This concern is further aggravated by past instances in India where AI-generated content on social media incited violence, underscoring the urgent need for ethical and accountable AI governance.

What can be India’s Approach?

  • Globally, countries have adopted varied models for AI and data governance.
    • Digital Personal Data Protection (DPDP) Act 2023 represents a centralised, cross-sectoral model, similar to the EU’s GDPR and China’s PIPL, offering a strong foundation for future AI regulation. 
    • The U.S. follows a decentralised, sector-specific approach. 
    • China has enacted AI-specific laws for targeted technologies like generative AI and deep synthesis.
  • India could adopt any of these models or design a hybrid framework.

Also Read: Artificial Intelligence and its Regulation 

India should aim to formulate a comprehensive AI policy that outlines a national vision, ethical guidelines, capacity-building strategies, governance mechanisms, and sectoral priorities.  This would enable the government to pilot regulatory tools, initiate civic discourse and pave the way for formal legislation. 

India’s E-Waste Rules trigger backlash

Context: India’s new e-waste recycling regulations, aimed at formalising the sector and enhancing environmental sustainability, have triggered strong opposition from several global electronics manufacturers including Daikin, Hitachi, and Samsung.

Relevance of the topic:

Prelims: Key facts related to e-waste in India.

Mains: Issues related to e-waste recycling in India. 

Current Status of E-Waste in India: 

  • India is the third-largest e-waste generator globally, after China and the US. In FY24, the country generated 1.7 million tonnes of e-waste, more than double the amount from six years ago.
  • Despite rapid growth in consumer electronics (estimated at $62 billion in 2025), only 43% of the country's e-waste is officially recycled. Comparatively, the US and China have significantly higher recycling rates.
  • At least 80% of the sector comprises informal scrap dealers, whose methods can pose environmental and health risks. 

What is E- Waste?

  • As per the E-Waste (Management) Rules, 2022, e-waste is defined as: electrical and electronic equipment, including solar photovoltaic modules or panels or cells, whole or in part, discarded or rejected from manufacturing, refurbishment and repair processes.
  • Examples: Large household appliances like Refrigerators, air conditioners, washing machines ; Consumer electronics like Televisions, computers, laptops, smartphones etc. 
  • E-waste can contain material of economic benefit such as plastics, iron, glass, aluminum, copper, silver, gold, platinum, palladium and indium etc. and rare earth elements.
  • E-Waste contains hazardous substances such as Lead, Cadmium, Mercury, Hexavalent Chromium, Polychlorinated Bi-phenyls (PCBs), Brominated Flame Retardants (BFR), etc. 
  • Management of E-Waste in India is regulated under E-Waste (Management) Rules, 2022 under the Environment Protection Act, 1986.
India's E-Waste Problem

India’s  E-Waste Regulations

  • Concerned about poor waste processing practices, the Indian government has introduced a minimum floor price for recycling electronic goods to incentivise formal recycling. 
  • The rules mandate: Rs 22/kg for consumer electronics and Rs34/kg for smartphones.
  • The Policy aims to:
    • Discourage environmentally harmful practices in the informal sector, which handles over 80% of India’s e-waste using dangerous techniques like acid leaching and open burning. 
    • Incentivise formal recycles by ensuring a guaranteed revenues for processing e-waste. 
    • Strengthen Extended Producer Responsibility (EPR) and promote circular economy. 

Firms’ Response

  • The firms are urging environment officials to abandon the approach, with four companies suing the Central government over the measures they say will heighten compliance woes and increased costs will cascade into higher consumer prices unsettling businesses 
  • For example, Hitachi stated that its recycling cost has risen nearly fourfold, from Rs 6/kg to Rs22/kg, translating into millions of dollars in additional expenses.

Government’s  Response: 

  • The government has maintained that it was ‘reasonable’ and within its powers to fix prices. Allowing companies and recyclers to set their own prices could lead to cost-cutting and unsafe practices.
  • There are currently 322 authorised recyclers in India. The government believes the floor price will help develop scientific recycling infrastructure and attract more investments in the sector.

The stand-off marks the latest chapter in foreign companies’ battles with India over what some perceive as protectionist policies and shifting regulatory goal posts.

MUDRA Loans hit All Time High

Context: Over 52 crore loans worth more than 32 lakh crore rupees have been sanctioned under Pradhan Mantri Mudra Yojana since the launch of the scheme in 2015. Half of the beneficiaries belong to SC, ST and OBC communities, and over 70% of them are women. 

Relevance of the topic:

Prelims: Pradhan Mantri Mudra Yojana (PMMY)

Mains: Benefits of MUDRA Loans

Pradhan Mantri MUDRA Yojana

  • Launch: April 8, 2015
  • Type: Central Sector Scheme
  • Objective: Providing loans up to Rs. 10 lakh to the non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY. 
  • Eligible Member Lending Institutions (MLIs):
    • Public Sector Banks
    • Private Sector Banks
    • State operated cooperative banks
    • Rural banks from regional sector
    • Micro Finance Institution (MFI)
    • Non-Banking Finance Company (NBFC)
    • Small Finance Banks (SFBs) 
    • Other financial intermediary approved by Mudra Ltd. as member financial institutions
  • Eligible borrowers:
    • Individuals
    • Proprietary concern
    • Partnership Firm
    • Private Ltd. Company
    • Public Company
    • Any other legal forms
  • Application: The borrower can also apply online through portal www.udyamimitra.in
  • Interest rate: declared by Member Lending Institutions from time to time as per RBI guidelines based on which applicable interest rate is determined.

Components of MUDRA loans

  • The scheme has been classified as:
Components of MUDRA loans
  • Tarun Plus: From FY 2024-25, the upper cap on Tarun loans was increased to ₹20 lakh, for loanees with a good repayment history, which can be given on the discretion of the banks. This has been one of the drivers for higher quantum of loans.
  • Key facts- MUDRA:
    • MUDRA is a refinancing Institution. 
    • MUDRA does not lend directly to the micro entrepreneurs / individuals. 

Present status of MUDRA Loans

  • All-time high disbursal: The disbursal of MUDRA Loans reached an all-time high at ₹3.39 lakh crore in the third quarter of FY 2024-25, that ended December 2024.
  • Largest share: SBI has the largest share in the distribution of PMMY loans.
  • Reduction in NPAs of PMMY: Aggregate NPAs of PMMY loans decreased to 3.4% in 2023-24 from 4.9% in 2019-20.
image 173

Benefits of MUDRA Loans

  • Financial Inclusion: Extending financial services to those who are traditionally underserved by the formal banking sector, including small entrepreneurs, micro-enterprises, and self-employed individuals. Funding support helps them start, expand, or modernise their operations. 
  • Economic Growth: Contribute to the overall economic growth of the country by boosting the productivity and profitability of micro and small enterprises.
  • Employment Generation: Facilitate creation of job opportunities and promote entrepreneurship, particularly in rural and semi-urban areas, by supporting small businesses and self-employment ventures.
  • Skill Development: Encourage skill development and capacity building among small entrepreneurs and individuals engaged in various trades and businesses.
  • Women Empowerment: Empower women entrepreneurs. Promote their participation in economic activities by offering financial assistance and support.

There are certain challenges such as over-indebtedness and the need for a more comprehensive support system. Addressing these challenges and expanding MUDRA's reach can further contribute to economic growth and inclusive development in India.

Why does India need to clean its air?

Context: India has set a target to reduce PM 2.5 levels by 2026 to 40% of the levels in 2017. While ambitious, the target risks falling short, if it is not mindful of on-ground realities.

Relevance of the Topic: Mains: Limitations of current policies, and the need for a more structured and data-driven approach to combating air pollution. 

India’s Air Pollution Crisis

  • India’s Air Pollution crisis is a persistent, silent pandemic that chokes our lungs every winter and quietly lingers throughout the year.
  • While initiatives like the National Clean Air Programme (NCAP), Bharat VI emission norms, Pradhan Mantri Ujjwala Yojana (PMUY), and targeted efforts to phase out coal-burning industries (particularly in the National Capital Region) mark important progress, the national response remains fragmented and slow-moving.

Key Challenges:

  • Structural and Behavioural Issues: Air Pollution is a complex structural issue shaped by:
    • Lack of coordinated execution.
    • Demographic pressure due to rapid urbanisation.
    • Socio-economic disparity: inequality in access to cleaner alternatives.
    • Entrenched economic systems: heavy dependence on coal and outdated industrial practices.
    • Behavioral norms: reluctance to shift away from polluting fuels.
  • Lack of Capacity: Air quality is often treated as a secondary concern rather than a core municipal function. Municipal officers, planners, engineers, and community leaders operate within tight budgets, outdated infrastructure, and competing local demands.
    • India’s NCAP budget is just 1% of what China spent on air pollution reduction.
    • Between 2019-2023, only 60% of NCAP funds were utilised, highlighting administrative inefficiencies.
  • Local governments lack access to high-resolution, open-source data on emissions-generating activities. Without such data, air pollution remains an abstract issue, disconnected from daily governance. 

Way Forward: Strategy Needed

  • India needs a phased, data-driven approach.
    • Phase I: Build local emissions profiles to identify the biggest pollution sources.
    • Phase II: Link funding directly to targeted actions based on that data.
    • Phase III : Track reductions in emissions, not just pollution concentrations, to measure real progress.
  • Activity-based tracking (E.g., monitoring the number of old diesel vehicles; LPG stoves adopted) is needed for more accurate measurement. 
  • Effective utilisation of allocated funds. Better coordination between all levels of government.
  • Learning from global examples: India must do the same — innovate programmes tailored to its regional requirements.
    • China closed coal plants
    • Brazil used community-led waste systems
    • California reinvested pollution revenue in poor communities
    • London banned coal-use before launching sensors.

India’s clean air future will be shaped by people, partnerships, and purpose. Clean air must be a right for all, not a privilege for a few. Securing that right will take coordination, courage, and a commitment to act. 

Reforming India’s Textiles Industry

Context: India has set an ambitious target to elevate its textile and apparel (T&A) exports from $34.8 billion in 2023-24 to an eye-popping $100 billion by 2030. This requires game-changing reforms in the textile sector. 

Relevance of the Topic: Mains: Challenges in India’s Textile Sector and way forward

Key Stats in the Textile Sector

  • India has set an ambitious target to increase its textile and apparel (T&A) exports from $34.8 billion in 2023-24 to $100 billion by 2030. 
  • India’s Textile and Apparel exports have grown steadily from $11.5 billion in FY2001 to $34.8 billion in FY24, accounting for only a 4% share in global exports of $774.4 billion.
    • India's apparel export growth has remained stagnant at around 3% of global apparel exports from FY2001 to FY24, despite an increase in export value from $5.5 billion to $14.5 billion. 
    • In contrast, competitors like Bangladesh and Vietnam have significantly increased their global share during the same period. 
  • At this pace, achieving the $100 billion target by 2030 seems a tall order, unless dramatic, game-changing reforms are introduced. 
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Challenges in the Textile Sector

  • Stagnation in Cotton Production:
    • India’s cotton production surged after introducing Bt cotton hybrids (2002), but has declined since 2014. Production is projected to fall to 30 million bales (2024-25), the lowest in 15 years. 
    • India may become a net importer of cotton, with imports (2.6 million bales) surpassing exports (1.5 million bales).
    • Next-gen Ht Bt seeds not approved despite the clearance from Genetic Engineering Appraisal Committee (GEAC).    
  • Outdated Fibre Mix: India’s cotton-to-Man Made Fibre ratio (60:40) contrasts with the global average (30:70), indicating an outdated fibre mix, and the global shift towards man-made fibres.
  • Raw Material Cost: MMF (Man-Made Fibres) such as polyester and viscose are 20% costlier in India compared to competitors (Bangladesh, China, Vietnam). Non-tariff barriers like quality control orders hinder MMF-based apparel growth.
  • Decentralised Production: 80% of India's garment factories are in the decentralised sector, leading to inefficiency and low export potential. 
  • Lack of Modernisation: Slow adoption of modern technology and weak value chain integration.
  • Trade Barriers: High tariff rates on apparel exports to key markets: EU (9.7%) and US (11.47%). In contrast, the EU offers zero-duty access to Bangladesh under the “GSP Everything but Arms” arrangement and imposes a 1.66% tariff on Vietnam’s apparel exports under the “EU-Vietnam FTA”  this creates a competitive disadvantage for Indian exports. 

Reforms needed in India’s Textile Sector

  • India’s garment sector needs to transition into a fashion-driven industry. To support this transformation, it is crucial to incentivise and invest in MMF-based apparel while removing non-tariff barriers, such as the quality control orders on MMF.
  • The PM-MITRA scheme must be fast-tracked to create integrated textile hubs, which will enhance scalability and efficiency in fabric and garment manufacturing.
  • India needs to negotiate Free Trade Agreements (FTAs) with the EU and the US — key markets that account for nearly 66% of India’s apparel exports.
  • India should explore emerging markets like Japan, Russia, Brazil, and South Korea, which offer significant opportunities for products like women’s western wear, intimate wear, swimwear, and outerwear.
  • Improving cotton productivity and fibre quality. Expanding irrigation, promoting high-density planting techniques, and investing in precision farming can help India bridge the productivity gap (435 kg/hectare) with global leaders like China (1,945 kg/hectare) and Brazil.
  • Streamlining the approval process for GM crops and establishing a single-window clearance system to speed up the adoption of high-yield, pest-resistant, next-generation cotton varieties. 

To achieve the ambitious target of $100 billion in textile and apparel exports by 2030, India must address the challenges hampering the sector. This requires modernising production, adopting MMF-based apparel, enhancing value chain integration, removing trade barriers through strategic FTAs and capitalising on emerging markets. 

Report flags underutilisation of funds by District Mineral Foundation

Context: A recent report prepared by iForest, an independent research group, flags underutilisation of development and welfare funds collected by the District Mineral Foundations. 

Relevance of the Topic: Prelims: District Mineral Foundation; Pradhan Mantri Khanij Kshetra Kalyan Yojana

Performance of District Mineral Foundation

  • Underutilisation of funds: Despite collecting about ₹1 lakh crore in the past decade by the DMF, more than half the funds is unspent. 
  • Diversion of funds: The funds are often diverted to activities that are not directly linked to the welfare of mining districts — a contravention of the Centre’s guidelines.

Achievements of District Mineral Foundation:

  • Decentralised community-centric development works have been carried out in mining affected districts.
  • DMF has been instrumental in:
    • setting up of women led SHGs in different states for example Odisha.
    • skill development and livelihood generation in mining affected districts.
  •  DMFs have adopted measures, such as, establishing a dedicated engineering department and deputing personnel from the State Public Works Department to ensure the efficient implementation of projects.
  • Note: Odisha accounts for the highest share of DMF funds, about 29% (₹30,126 crore) of the country’s total, followed by Chhattisgarh and Jharkhand. 

District Mineral Foundation (DMF):

  • Non-profit trusts established under the Mines & Minerals (Development & Regulation) (MMDR) Amendment Act, 2015 in all the districts affected by mining.
  • Objective: To work for the interest and benefit of persons, and areas affected by mining related operations.
  • The composition and functions of the DMF shall be prescribed by the State Government.
  • DMFs ensure that a portion of the revenues generated from mining is spent on the development of the districts. DMFs have been set up in 645 districts in 23 States in the country which have framed DMF rules. 
  • The holder of a mining lease or a prospecting licence-cum-mining lease granted on or after the date of commencement of the MMDR Amendment Act, 2015, shall share some amount of royalty with DMF.  

Pradhan Mantri Khanij Kshetra Kalyan Yojana:

  • Launched in: 2015
  • Initiative of: Ministry of Mines
  • Implemented by: District Mineral Foundations of the respective districts. 
  • Aim: To provide for the welfare of areas and people affected by mining related operations, using the funds generated by DMF.
  • Objectives:
    • implement various developmental and welfare projects in mining affected areas.
    • to mitigate the adverse impacts (during and after mining) on the environment, health and socio-economics of people in mining districts.
    • ensure long-term sustainable livelihoods for the affected people in mining areas.
  • PMKKKY provides for utilisation of at least 70% of the funds for high priority areas like: (i) drinking water supply (ii) environment preservation and pollution control measures (iii) health care (iv) education (v) welfare of women and children (vi) welfare of aged and disabled people (vii) skill development (viii) sanitation ix) housing (x) agriculture and (xi) animal husbandry. 
  • While, up to 30% of the funds shall be utilised for other priority areas (i) physical infrastructure (ii) irrigation (iii) energy and watershed development and (iv) any other measures for enhancing environmental quality in mining districts.

The prime focus of DMF and PMKKKY is to alleviate poverty and deprivation, which requires a balanced investment in human resources and infrastructure. However, this balance has not been achieved in any district.

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