Government Schemes & Policies

Government discontinues Gold Monetisation Scheme

Context: The Ministry of Finance has announced to discontinue Medium- and Long-term deposits under the Gold Monetisation Scheme from March 26, 2025. The banks may continue (at their discretion) Short-Term Gold Deposits (1-3 years) under the scheme.

Relevance of the Topic: Prelims: Key facts about Gold Monetisation Scheme. 

Gold Monetisation Scheme: 

  • Launched in: November 2015 
  • Initiative of: Ministry of Finance 
  • GMS facilitated the deposition of idle gold held by households, trusts and various institutions in India. 
  • Aim:
    • To make idle gold productive and let consumers to either sell their gold or store it with banks.
    • To reduce the country’s gold imports and thus, reduce the current account deficit. 

GMS consisted of three components: 

  1. Short-term bank deposit (1-3 years)
  2. Medium-term government deposit (5-7 years)
  3. Long-term government deposit (12-15 years)
  • The minimum deposit allowed was 10 gm of raw gold (bars, coins, jewellery excluding stones and other metals). There was no maximum limit for deposit under the scheme.

Gold Monetisation Interest Rate

  • For Short-term bank deposit: Interest rate payable is decided by the banks on the basis of the prevailing international lease rates, other costs, market conditions, etc., and is borne by the banks. 
  • For Medium- and Long-term deposits: Interest rate is decided by the government, in consultation with the RBI and borne by the Central government. Interest rate was fixed at 2.25% per annum for medium-term bonds and at 2.5% for the long-term bonds.

Present status of gold schemes in India:

  • Gold Monetisation Scheme is the second gold scheme to face closure by the government in recent months amid a sharp surge in gold prices. The Centre had earlier discontinued fresh issuance of sovereign gold bonds. 
  • Till November 2024, approximately 31,164 kg of gold had been mobilised under GMS, as per official data. 

Also Read: Sovereign Gold Bond Scheme 

PAC flags issues in Swadesh Darshan Scheme

Context: Public Accounts Committee slammed the Union Tourism ministry for poor implementation of its flagship scheme — Swadesh Darshan — launched in 2014-15. The audit report of the Comptroller and Auditor General of India had highlighted serious lapses in the formulation and execution of Swadesh Darshan Scheme.  

Relevance of the Topic Prelims : Swadesh Darshan Scheme, Swadesh Darshan Scheme 2.0, Public Accounts Committee. 

Key Issues identified by CAG Audit Report

  • The government had not carried out feasibility studies before launching the scheme.
  • The government has exceeded the sanctioned amount due to poor planning.
  • Approvals were given without Detailed Project Reports (DPRs) and there had been no formal mechanism for evaluation and approval.
  • Many projects remained incomplete or were non-functional. E.g., Kanwaria route in Bihar, Tribal circuit in Telangana, and Sree Narayana Guru Ashram in Kerala.

Swadesh Darshan Scheme 

  • Launched in: 2014-15 by the Ministry of Tourism.  
  • Aim: To promote, develop and harness the potential of tourism in India through integrated development of theme-based tourist circuits.
  • 15 theme-based circuits have been identified for development. 
  • Central Sector Scheme (100% funded by Central government).
    • Financial assistance is provided to State Governments, UT Administrations, and Central Agencies for tourism infrastructure development. 
    • State/UT governments responsible for Operation & Maintenance (O&M) of sanctioned projects.  
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Swadesh Darshan Scheme 2.0

  • The Ministry of Tourism revamped the Swadesh Darshan Scheme in 2022. 
  • Aim: To develop sustainable and responsible destinations following a tourist & destination-centric approach.
  • Strategic Objectives:
    • Enhance the contribution of tourism to local economies.
    • Create jobs including self-employment for local communities.
    • Enhance the skills of local youth in tourism and hospitality.
    • Increase private-sector investment in tourism and hospitality.
    • Preserve and enhance the local cultural and natural resources.
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Public Account Committee (PAC)

  • PAC is one of the three financial committees of the Parliament (Estimates Committee and the Committee on Public Undertaking). 
  • Set up first in 1921, under the Government of India Act of 1919.
  • At present, it consists of 22 members (15 from Lok Sabha; 7 from Rajya Sabha).
  • The members are elected by the Parliament every year from amongst its members,  according to the principle of proportional representation by means of the single transferable vote. Thus, all parties get due representation in it.
  • Term of office of the members: One year.
  • A Minister cannot be elected as a member of the committee. 
  • The Chairman of the committee is appointed from amongst its members by the Speaker. As per convention, the chairman is selected invariably from the Opposition. 

Main Functions

  • Audit government spending: Reviews reports from the Comptroller and Auditor General (CAG) on government expenditure.
  • Ensure financial discipline: Checks if public money is spent as per parliamentary approval. Identifies cases of misuse, waste, or fraud in public funds.
  • Recommend corrective measures: Suggests policy changes to improve financial management.
  • Examine revenue collection: Reviews tax collection and other government earnings.

National Wildlife Health Policy 

Context: Five years after Covid-19 was declared a pandemic, caused by the SARS-CoV-2 virus that likely jumped from bats to humans, the central government is reviewing an interim draft of a National Wildlife Health Policy (NWHP).

Relevance of the Topic:Prelims: National Wildlife Health Policy; National One Health Mission. 

Key Components of the National Wildlife Health Policy

  • NWHP proposes a comprehensive surveillance system to monitor wildlife health across terrestrial, marine, and avian ecosystems. 
  • The policy would be aligned with the National One Health Mission to coordinate efforts for pandemic preparedness and integrated disease control. 
  • National Referral Centre for Wildlife (NRC-W) will act as a referral centre to investigate wildlife mortalities and outbreak events. It will facilitate disease diagnostics, treatments, and could be one of the nodal authorities for surveillance.
  • National Wildlife Health Database can act as a centralised repository of real-time or near-time surveillance data, historical data along with databases from animal husbandry and human health. 
  • Wildlife Health Information System has been proposed to streamline disease surveillance, facility-level reporting and spatial-temporal data.
  • Establishment of Satellite Diagnostic laboratories near critical forest habitats will enhance timely disease detection. 
  • Improving vaccination among livestock near National Parks to mitigate zoonotic disease risks through community engagement. 
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Need of National Wildlife Health Policy: 

  • Over 60% of emerging infectious diseases impacting humans are getting transmitted from animals to humans. 
  • As per government data, India has a network of 1,014 protected areas which includes 106 national parks, 573 wildlife sanctuaries, 115 conservation reserves and 220 community reserves spread over 5.32% of its geographical area. Wildlife acts as a reservoir of pathogens and thus monitoring their health, in the wild and in captivity, has become an imperative. 

Challenges in the Current Framework: 

  • Fragmented disease surveillance: Wildlife health monitoring is spread across multiple ministries (Environment, Agriculture, and Animal Husbandry), leading to poor coordination and data exchange.
  • Lack of centralised wildlife health database: No unified system exists to track real-time disease outbreaks, making early detection and response difficult.
  • Limited diagnostic infrastructure: India lacks specialised wildlife disease labs, delaying diagnosis and treatment of emerging infections.
  • Inadequate capacity: Forest officials and veterinarians in wildlife areas often lack training and resources for disease detection and management. 
  • Zoonotic spillover risk: Unchecked human-wildlife interactions (livestock grazing near forests, illegal wildlife trade) increase the risk of zoonotic diseases like Covid-19.
  • Regulatory gaps: No specific legal framework for wildlife health management; existing laws (Wildlife Protection Act) focus more on conservation than disease prevention.
  • Limited community involvement: Lack of awareness and participation from local communities in disease prevention, such as vaccinating livestock near protected areas.
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National One Health Mission: 

  • Launched in 2022.  
  • Aim: To coordinate across Ministries in achieving overall pandemic preparedness and integrated disease control against priority diseases of both human and animal sectors. 
  • The mission will help in institutionalising the 'One Health' approach. One Health recognises that the health of people is closely connected to the health of animals and shared environment. 
  • Human and animal pandemic preparedness is a key pillar of the One Health Mission which relies on effective surveillance strategies, boosting research, innovation community engagement and data integration across sectors. 
  • One of the key goal is Creation of a network of BSL 3/4 labs: 
    • This network will play a critical role in preventing, detecting, and responding promptly to disease outbreaks across human, livestock and wildlife sectors.
    • Currently there are 22 labs in this Network.  
  • This mission involves 13 ministries and departments, including the Department of Science and Technology, the Department of Biotechnology (DBT), the Council of Scientific and Industrial Research (CSIR) etc. 
  • National Institute for One Health in Nagpur will act as the coordinating body for national and international activities in the field of One Health. 

PLI scheme for Electronic Components Manufacturing finalised

Context: The Ministry of Electronics and Information Technology (MeitY) has finalised an ambitious incentive policy to boost domestic manufacturing of electronic components. 

With an outlay of approximately ₹23,000 crore spread over six years, the scheme aims to deepen value addition in the electronics sector.

Relevance of the topic:

Prelims: Incentive policy for electronic components manufacturing.

Mains: Electronic components manufacturing in India. 

Incentive Scheme for Electronic Components Manufacturing

  • Target: 
    • To enhance domestic value addition in the electronics sector, which remains low at 15-20%. 
    • The government hopes to raise this to 30-40% by promoting domestic manufacturing of electronic components.
  • Targeted components: The scheme will support the manufacturing of key electronic components such as:
    • Display modules
    • Camera sub-assemblies
    • Printed circuit board assemblies
    • Lithium cell enclosures
    • Resistors, capacitors, ferrites, and more
  • Types of Incentives:
    • Operational Incentives: Based on net incremental sales, similar to the PLI scheme.
    • Capital Expenditure Incentives: Given on eligible capital expenditure to promote infrastructure investments. 
  • Eligible entities:
    • Both greenfield and brownfield investments can avail subsidies.
    • Foreign companies can participate through technology transfer to Indian companies or through joint ventures with domestic firms.
  • Employment Generation:
    • The initiative aims to create 91,600 direct jobs over six years. 
    • Annual incentive payouts will range from ₹2,300 crore to ₹4,200 crore, conditional on companies meeting investment, production, and employment targets. 

Electronic Components Manufacturing Sector in India

  • Market size: Valued at $101 billion in March 2023. The sector aims to reach $300 billion by 2025-26. 
    • Production Linked Incentives (PLI) schemes have boosted production and attracted major global players like Apple and Samsung. 
    • Exports of electronic goods rose by 23.6% in FY 2023–24 to $29.12 billion.
    • Key Initiatives:
      • MeitY: Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and the Modified Electronics Manufacturing Clusters (EMC 2.0) scheme. These schemes focus on infrastructure and investment in high-value components.
      • National Policy on Electronics 2019, along with Make in India and Digital India to support domestic manufacturing, job creation, and technological growth. 
      • Investments in R&D and manufacturing clusters further enhance the sector’s expansion.

Challenges in India’s Electronics Manufacturing

  • Low Domestic Value Addition: Despite success in localising smartphone assembly, value addition remains around 15-20%, with the aim to increase it to 40%.
  • Demand-Supply Gap:
    • Domestic demand is estimated to be $100 billion, while the country’s production capacity is only $10.75 billion. 
    • The demand for components is expected to reach $160 billion by 2028-29, with imports growing at 12% annually.
  • Investment to Turnover Ratio: For smartphones, every ₹1 of investment yields ₹20 in turnover; whereas for electronic components, it yields only ₹2-4.
  • Heavy dependence on Imports: Electronics imports constitute nearly 75% of the total electronics production in India, making the country heavily dependent on foreign suppliers for critical components like integrated circuits.

Restructuring Skill India Programme

Context: The Union Cabinet has restructured the Central Sector Scheme ‘Skill India Programme’ till 2026 with an overlay outlay of Rs.8,800 crore from the period 2022-23 to 2025-26. This initiative aims to develop a future-ready workforce by integrating demand-driven, technology-enabled, and industry-aligned training across India.

Relevance of the Topic:Prelims: Key facts about the Restructured Skill India Programme. 

Restructured Skill India Programme

  • Nodal Ministry: Ministry of Skill Development and Entrepreneurship
  • The programme consolidates three flagship schemes:
    • Pradhan Mantri Kaushal Vikas Yojana 4.0 (PMKVY 4.0)
    • Pradhan Mantri National Apprenticeship Promotion Scheme (PM-NAPS)
    • Jan Shikshan Sansthan (JSS) Scheme
  • Under the three flagships schemes, there are more than 2.27 crore beneficiaries till date.
  • Aim:
    • To build a skilled future-ready workforce
    • To integrate demand-driven, technology-enabled, and industry-aligned training 
    • To provide structured skill development, on-the-job training, and community-based learning.
    • To ensure that both urban and rural populations, including marginalized communities, have access to high-quality vocational education.

1. Pradhan Mantri Kaushal Vikas Yojana 4.0 (PMKVY 4.0)

  • Provides NSQF-aligned skill training through:
    • Short-Term Training (STT)
    • Special Projects (SP)
    • Recognition of Prior Learning (RPL)
  • Target beneficiary: Age group of 15-59 years.
  • Key Features:
    • Integration of On-the-Job Training (OJT) within skilling programs.
    • Introduction of 400+ new courses in AI, 5G, Cybersecurity, Green Hydrogen, and Drone Technology.
    • Establishment of Skill Hubs in premier institutions like IITs, NITs, JNVs, and Kendriya Vidyalayas. International mobility focus through Mobility Partnership Agreements (MMPAs).
    • Blended learning approach incorporating digital training. Training material translated into eight regional languages.
    • Inter-ministerial convergence with PM Vishwakarma, PM Surya Ghar, and the National Green Hydrogen Mission.
    • Ease of Doing Business approach to streamline participation.

2. PM National Apprenticeship Promotion Scheme (PM-NAPS)

  • Objective: Encourage industry-led skill development through apprenticeships.
  • Target Group: 14-35 years.
  • Key Features:
    • Focus on the earn-while-you-learn model.
    • Align skilling initiatives with futuristic job markets and industry trends.
    • 25% stipend support (up to Rs. 1,500 per month per apprentice) via Direct Benefit Transfer, provided by the Central Government.
    • Coverage: AI, robotics, blockchain, green energy, and Industry 4.0.
    • Special focus on MSMEs and underserved areas such as Aspirational districts and North-East Region.

3. Jan Shikshan Sansthan (JSS) scheme

  • Objective: Community-based skilling for disadvantaged groups.
  • Target Group: 15-45 years, especially women, rural youth, and economically weaker sections.
  • Key Features:
    • Low-cost, doorstep training for self-employment and wage-based livelihoods.
    • Creating awareness on health, hygiene, gender equality, and education within communities to promote inclusive skilling.
    • Linked with PM JANMAN, ULLAS, and financial literacy programs.
    • Certification integrated with National Skills Qualification Framework (NSQF), DigiLocker, and National Credit Framework (NCrF).
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Significance of Skill India Programme: 

  • Enhancing Employability: Aligning training with national and global industry standards.
  • Economic Growth: Strengthening workforce development to boost productivity.
  • Technology Integration: Preparing the youth for futuristic technologies.
  • Global Competitiveness: Promoting international mobility and globally recognised certifications.
  • Entrepreneurship and Self-Reliance: Encouraging skill-based startups and self-employment opportunities.
  • Social Inclusion: Ensuring access to skill development for rural and marginalized communities.

The continuation of the Skill India Programme reinforces the importance of continuous upskilling and reskilling. The initiative will directly contribute to Periodic Labour Force Survey (PLFS) data, ensuring that workforce development policies remain aligned with economic and industrial trends.

Prime Minister Dhan-Dhaanya Krishi Yojana

Context: In the Union Budget 2025-26, the Finance Minister announced several new initiatives for the agriculture sector, including the Prime Minister Dhan-Dhaanya Krishi Yojana.

Relevance of the Topic: Prelims: Key facts about Prime Minister Dhan-Dhaanya Krishi Yojana.

About Prime Minister Dhan-Dhaanya Krishi Yojana

  • The scheme will be launched in partnership with states through the convergence of existing schemes and specialised measures.  
  • No separate allocation has been made for the Prime Minister Dhan-Dhaanya Krishi Yojana, however, there are allocations for existing schemes which are to be converged: 
  • Rs 1,000 crore has been allocated for the mission for pulses. 
  • Rs 500 crore for the mission for vegetables and fruits. 
  • Rs 100 crore support for the Makhana Board. 
  • Rs 100 crore for the mission on hybrid seeds. 
  • Rs 500 crore for the cotton technology mission.
  • In phase 1, It will be launched in 100 districts with low crop productivity, moderate crop intensity and below-average credit parameters.
    • It is expected to benefit 1.7 crore farmers spread across the targeted districts.
    • The scheme draws inspiration from the Aspirational Districts Program and would drive focused reforms to uplift farmers in underdeveloped agricultural regions.

Key focus of PM Dhan-Dhaanya Krishi Yojana

  • Enhance agricultural productivity
  • Adopt crop diversification and sustainable agriculture practices
  • Augment post-harvest storage at the panchayat and block level
  • Improve irrigation facilities 
  • Facilitate availability of long-term and short-term credit.
Key focus of PM Dhan-Dhaanya Krishi Yojana

Components:

Rural Prosperity and Resilience Program: 

  • It aims at addressing under-employment in agriculture through skilling, investment, technology, and invigorating the rural economy. 
  • The goal is to generate ample opportunities in rural areas so that migration is an option, but not a necessity. 
  • The programme will focus on rural women, young farmers, rural youth, marginal and small farmers, and landless families.
  • Global and domestic best practices will be incorporated and appropriate technical and financial assistance will be sought from multilateral development banks.

Aatmanirbharta in Pulses:

  • The government will launch a 6-year mission with a special focus on Tur, Urad and Masoor. 
  • The Mission will place emphasis on development and commercial availability of climate resilient seeds; enhancing protein content; increasing productivity; improving post-harvest storage and management and assuring remunerative prices to the farmers. 
  • Central Agencies (NAFED and NCCF) will procure these 3 pulses, as much as offered during the next 4 years from farmers who register with these agencies and enter into agreements.

Comprehensive Programme for Vegetables & Fruits: 

  • A comprehensive programme to promote production, efficient supplies, processing, and remunerative prices for farmers will be launched in partnership with states. 
  • Appropriate institutional mechanisms for implementation and participation of farmer producer organizations and cooperatives will be set up.

Grameen Credit Score: Public Sector Banks will develop the ‘Grameen Credit Score’ framework to serve the credit needs of SHG members and people in rural areas.

National Critical Mineral Mission

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

Relevance of the topic:

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

Mains: Critical Minerals- Govt. Initiatives

About National Critical Minerals Mission (NCCM)

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

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

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

International Collaborations for Critical Minerals

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

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

Prioritise MSMEs under Interest Equalisation Scheme

Context: Ahead of the Union Budget 2025-26, the Commerce and Industry Ministry has approached the Finance Ministry to extend the revamped Rs 3,000 crore Interest Equalisation Scheme (IES) to prioritise Micro, Small and Medium Enterprises (MSMEs) involved in exports.

Relevance of the Topic: Prelims: Key facts about the Interest Equalisation Scheme.

Interest Equalisation Scheme

  • Launched: April, 2015 
  • Aim: To provide pre- and post-shipment export credit to exporters in Indian rupees at subsidised rates. 
  • Implementing agency: Reserve Bank of India (RBI) through various Public and non-Public Sector banks. 
  • Monitoring: Jointly monitored by Directorate General of Foreign Trade (DGFT) and RBI through a consultative mechanism.

Key Features of the scheme

  • Who can apply for IES?
    • MSME manufacturer exporters
    • Other merchant and manufacturer exporters exporting along 410 HS (Harmonised system) lines.
  • Interest Subvention: Subsidy ranges from 3% to 5% on credit. 
  • Documentation: 
    • An eligible exporter has to submit a certification from the external auditor to the concerned bank to claim this benefit.
    • Banks provide IES benefits to the eligible exporters and claim a reimbursement from the RBI, based on the external auditor certification furnished by the exporter.
  • Digital application process: An active IEC (Import Export Code) is mandatory and digital signature/ Aadhar e-sign token is required.
  • The Scheme has now been made fund-limited, and the benefit to individual exporters has been capped at Rs 10 Crore per annum per IEC (Import Export Code). 

Benefits of Interest Equalisation Scheme

  • Provide credit to the exporters at competitive rates. 
  • Helps the identified export sectors to be internationally competitive.
  • Achieve a high level of export performance.

Need for Revival of the Scheme

  • Boosting Economic Competitiveness: Subsidies offset the high cost of credit in India, addressing structural inefficiencies in the Indian financial system. 
  • MSMEs and Exports:
    • MSMEs contribute 45% of India’s total exports.
    • Challenges faced:
      • High credit costs
      • Inflation
      • Logistics issues (E.g., the Red Sea crisis)
  • Export Credit Trends:
    • Export credit declined from ₹2,27,452 crore (March 2023) to ₹2,17,406 crore (March 2024).
    • Rising demand for longer credit durations: from 30-60 days to 120-150 days.

Challenges

  • Skewed Towards Larger Exporters: Past misuse by non-MSME entities prompted calls for focusing IES solely on MSMEs.
  • Liquidity Concerns: High inflation and logistical delays (E.g., Red Sea crisis) has increased working capital needs.
  • Insufficient Support: The ₹50 lakh cap on credit subsidies for MSMEs is insufficient for many MSMEs.

Suggested Reforms

  • Targeted Focus: Restrict the scheme exclusively to MSMEs to ensure equitable benefits.
  • Long-Term Continuity: A sustained IES can improve predictability and help MSMEs manage orders better.
  • Revamping Through EFC: Modifications will not require budgetary announcements but can be implemented via the Expenditure Finance Committee (EFC) route.

Namo Drone Didi Scheme 

Context: Namo Drone Didi Scheme is skilling and training women as drone-pilots and contributing to their economic empowerment and sustainable livelihood generation, in various Indian states. 

Relevance of the Topic: Prelims: Key facts about Namo Drone Didi Scheme. 

About Namo Drone Didi Scheme

  • Namo Drone Didi is a central sector scheme to empower women-led Self-Help Groups (SHGs) by equipping them with drone technology to provide agricultural services. 
  • Aim: To provide drones to 15000 selected Women SHGs during the period from 2024-25 to 2025-2026, for providing rental services to farmers for agriculture purposes (application of liquid fertilisers and pesticides at present). 

Key Features of Namo Drone Didi Scheme                                                                

  • Financial Support and Accessibility   
    • Women SHGs receive substantial financial assistance, covering 80% of the drone and accessory costs, up to Rs. 8 lakhs.
    • For the remaining 20% cost, SHGs can seek loans from the National Agriculture Infrastructure Financing Facility (AIF) with a 3% interest subvention.
  • Collaborative Effort: The scheme is a collaborative venture between:
    • Department of Agriculture & Farmers Welfare
    • Department of Rural Development
    • Department of Fertilisers
    • Lead Fertiliser Companies and other supporting entities. 
  • Cluster-Based Implementation: 
    • Scheme implementation involves selection of area/cluster and SHG groups in Rural Areas under DAY – NRLM (Deendayal Antyodaya Yojana -National Rural Livelihoods Mission), where there is demand for drones to provide agriculture services. 
  • Specialised Training for Women SHG Members: One of the members of the women SHGs will be selected for 15-day training consisting of:
    • 5-day mandatory drone pilot training. 
    • 10 days training for agriculture purposes for nutrient and pesticide application.
Namo Drone Didi Scheme

Benefits of Namo Drone Didi Scheme:                                           

  • Skill Development and Women Empowerment: 
    • Specialised training to women in drone technology and other modern agricultural practices, such as optimal application of fertilisers, pesticides, and herbicides. It enables them to perform tasks like crop monitoring, soil analysis, and precision farming more efficiently.
    • The scheme is expected to generate an additional income of at least Rs. 1 lakh per year for each SHG.
  • Enhancement of Agricultural Efficiency: 
    • Drone technology significantly enhances precise application of pesticides and fertilisers. This reduces overuse of chemicals, minimising environmental impact and lowers input costs for farmers. 
  • Community and Networking Opportunities:
    • Women can connect with a supportive network of fellow participants, industry experts, mentors, and agricultural professionals, creating avenues for mentorship and professional growth.

SVAMITVA Scheme: Ten States yet to Join

Context: The SVAMITVA scheme, which aims to issue legal property cards to rural families, finds hindrance in its implementation as ten states are yet to join the scheme, citing existing systems and other reasons.

Relevance of the topic:

Prelims: SVAMITVA scheme- Facts about the Scheme

Mains: SVAMITVA- Benefits, Concerns

About SVAMITVA Scheme

  • SVAMITVA stands for Survey of Villages and Mapping with Improvised Technology in Village Areas.
  • It is a central sector scheme which was launched nationally on the occasion of National Panchayati Raj Day on 24th April 2021.
  • Initiative of: Ministry of Panchayati Raj.
    • The scheme is a collaborative effort of the Ministry of Panchayati Raj, State Panchayati Raj Departments, State Revenue Departments.
    • Survey of India is the Technology Implementation Agency.
  • The scheme is a reformative step towards establishment of clear ownership of property in rural inhabited (Abadi) areas.
  • It provides the ‘record of rights’ to village household owners possessing houses in inhabited rural areas in villages. The legal ownership cards (Property cards/Title deeds) would be issued to the property owners by mapping land parcels using Drone survey and CORS (Continuously Operating Reference Stations) Networks which provides mapping accuracy of 5 cm. 
  • It will cover around 6.62 Lakh villages of the entire country during 2021-2025.
  • Eligibility: The applicant should have a property in rural inhabited (Abadi) area.
  • Exclusions: Agricultural Lands are not covered under this scheme.
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Benefits of SVAMITVA Scheme

  • Reduce property-related disputes and legal cases by creating accurate land records.
  • Financial stability to the citizens in rural India by enabling them to use their property as a financial asset for taking loans and other financial benefits. 
  • Creation of survey infrastructure and GIS (Geographic Information System) maps that can be leveraged by any department for their use.
  • Preparation of a better-quality Gram Panchayat Development Plan aided by proper land records and use of GIS maps enhances governance. 
  • Financial federalism: Determination of property tax, which would accrue to the Gram Panchayats directly in States where it is devolved or else, add to the State exchequer.
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States’ Reservations in implementation of SVAMITVA Scheme

  • Ten states including Tamil Nadu, West Bengal and Bihar are yet to join the SVAMITVA scheme.
  • Existing systems of similar measures:
    • ‘Natham’ areas in Tamil Nadu, for instance, have legal validity for their land records and can be used to apply for bank loans.
    • Bihar Special Survey and Settlement Act, 2011 has been carrying out the survey of the entire State with maps, records and rights.
    • Prior Abaadi records exist in West Bengal.
  • Limited coverage:
    • Jharkhand has paused the implementation of SVAMITVA due to the perceived conflict in giving property rights under the Santhal Pargana and Chotanagpur Tenancy Acts.
    • Odisha and Assam have allowed limited coverage of the scheme in their jurisdictions. 
  • Non-inclusion of certain areas:
    • Many States, including Uttar Pradesh, have not extended the Abaadi area to include the agricultural land on which people have constructed houses and are staying in villages.

PM Internship Scheme

Context: As per the Union Ministry of Corporate Affairs, the pilot scheme of the Prime Minister’s Internship Scheme has received approximately 6.21 lakh applications against 1.27 lakh opportunities under the scheme.

Relevance of the Topic: Prelims: Key facts about the Prime Minister’s Internship Scheme. 

About Prime Minister’s Internship Scheme

  • The scheme was announced in the Budget 2024-25. 
  • Initiative of: Ministry of Corporate Affairs
  • Aim: To provide internship opportunities to one crore youth in top 500 companies in five years. 
  • A Pilot Project of the Scheme targeted at providing 1.25 lakh internship opportunities has been launched for the Financial Year 2024-25.

Selection of Companies:

  • The internship opportunities span 24 sectors, including oil, gas, energy, travel, hospitality, automotive, banking and financial services, etc. 
  • The companies selected for this pilot were identified based on their corporate social responsibility (CSR) expenditure over the past three years, ensuring that participants are placed in organizations that are committed to social and ethical practices.
  • Other companies, banks, or financial institutions can also participate with approval from the Ministry of Corporate Affairs (MCA), particularly if they represent underrepresented sectors.
  • If a partner company cannot provide internship opportunities directly, it may collaborate with: Companies in its forward and backward supply chain (e.g., suppliers, customers, vendors).
PM Internship Scheme

Eligibility:

  • The Pilot Project offers a 12-month internship program designed for youth aged 21 to 24 years, specifically for Indian nationals who are not employed full-time or engaged in full-time education. 
  • Internships can be applied for through the PM Internship Portal (Managed by Ministry of Corporate Affairs) 
  • Candidates who have passed High School or Higher Secondary School, have a certificate from an ITI, have a diploma from a polytechnic institute. Graduated with degrees such as BA, B.Sc, B.Com, BCA, BBA, B.Pharma, etc.

Exclusion:

  • Graduates from premier institutions like IITs, IIMs, National Law Universities, IISER, NIDs, and IIITs along with holders of qualifications such as CA, CMA, CS, MBBS, BDS, MBA, or any master’s or higher degree are not eligible.
  • Those undergoing skill, apprenticeships, internships, or student training under Central or State government schemes along with Individuals who have completed apprenticeships under National Apprenticeship Training Scheme (NATS) or National Apprenticeship Promotion Scheme (NAPS) are ineligible. 
  • A candidate is deemed ineligible if the income of any of the family members exceeds Rs 8 Lakh for FY 2023-24.
  • Family members of permanent or regular government employees are also excluded.

Financial Assistance:

  • Interns will receive a monthly stipend of ₹5,000 throughout the internship duration.
    • This consists of: ₹500 contributed by partner companies, contingent on attendance and conduct.
    • The remaining ₹4,500 will be provided by the government via Direct Benefit Transfer (DBT) to the intern’s Aadhaar-seeded bank account.
  • Additionally, a one-time grant of ₹6,000 will be disbursed after joining the internship, also through DBT.
  • All interns will be covered under the government’s insurance schemes: Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana, with the premium paid by the government.
  • Training Costs i.e. expenditures associated with the training of interns under the Scheme, would be borne by the company from its CSR funds, as per the extant rules.

Significance:

  • Scheme provides an opportunity to the interns to get training, gain experience and skills within the real-life environment of the businesses or organizations that helps in bridging the gap between academic learning and industry requirements, in turn, assisting enhancement of her/his employability.
  • By partnering with leading companies across diverse sectors, the initiative aims to enhance employability and skills among participants. 
  • With clear eligibility criteria and structured support through Direct Benefit Transfers, this program not only fosters professional growth but also encourages active participation from businesses committed to corporate social responsibility.

Key Initiatives in the field of Skill development:

  • STRIVE Project focuses on entrepreneurship and mentoring in ITIs and NSTIs.
  • PM-JANMAN initiative targets skilling and uplifting vulnerable tribal groups.
  • SANKALP - marginalized communities receive support for entrepreneurship
  • Initiatives under the Skill India Mission [Ministry of Skill Development and Entrepreneurship (MSDE)} 
    • Pradhan Mantri Kaushal Vikas Yojana (PMKVY) - offers short-term skill training
    • Pradhan Mantri Kaushal Kendra’s (PMKK) - standardizes quality training across India. 
    • Jan Shikshan Sansthan (JSS) - target non-literate and rural populations,
    • Pradhan Mantri YUVA Yojana - promotes entrepreneurship. 
    • Skill India Digital (SID) - introduces AI-driven tools for job matching and continuous learning. 
    • The PM Vishwakarma Yojana - supports traditional artisans by modernizing their skills and integrating them into global markets, ensuring sustainable livelihoods.

Pradhan Mantri Vidyalaxmi Scheme

Context: The RBI report has highlighted that Education loans have been growing at a notable pace in recent years and in this regard, a further boost is expected with the newly launched ‘Pradhan Mantri Vidyalaxmi Scheme’. 

Relevance of the topic: Prelims- Key facts about the scheme and its provisions.

About PM Vidyalaxmi Scheme: 

  • It is a Central Sector scheme under the Ministry of Education that seeks to provide financial support to meritorious students so that financial constraints do not prevent them from pursuing higher studies. 
  • The initiative stems from the National Education Policy 2020, which had recommended that financial assistance should be made available to meritorious students through various measures in both public and private Higher Education Institutions (HEIs). 
PM Vidyalaxmi Scheme

Key features:

  • Institutions Covered: Meritorious students of the top 860 Higher Education institutions, including-
    • Top 100 HEIs (both Government + Private) ranked in the National Institutional Ranking Framework (NIRF). 
    • State Govt HEIs (ranked 101–200 in NIRF).
    • All Central Government Institutions: ~660 institutions.
  • Digitalisation: Students can apply through the Vidyalaxmi portal, which links major public and private banks. The portal provides a simplified digital application process and facilitates loan tracking.
  • Loan conditions: 
    • Collateral free, guarantor free loan to cover the full amount of tuition fees and other expenses related to the course. 
    • Loans up to ₹ 7.5 lakhs are backed by a 75% credit guarantee from the Government of India, encouraging banks to expand coverage.
    • For students with annual family income up to ₹ 8 lakhs, the scheme will provide 3% interest subvention on loans up to ₹ 10 lakh. 
    • Students with up to Rs. 4.5 lakhs annual family income are eligible for full interest subvention. 
  • Sync with other schemes: This will supplement the already existing Central Sector Interest Subsidy (CSIS) and Credit Guarantee Fund Scheme for Education Loans (CGFSEL), schemes under the Pradhan Mantri Uchchatar Shiksha Protsahan (PM-USP), being implemented by the Department of Higher Education. 

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