GS Paper 3

Royalty Rationalisation for Critical Minerals

Context: The Union Cabinet has approved revised ad valorem royalty rates for four critical minerals — graphite, caesium, rubidium, and zirconium — with the aim of strengthening domestic mining, improving auction success, and reducing India’s dependence on imports for clean-energy supply chains.
The reform aligns with India’s broader strategy to secure critical mineral value chains essential for EVs, semiconductors, batteries, renewable energy technologies, and defence manufacturing.

Revised Royalty Rates

  • Caesium: 2% of Average Sale Price (ASP) on metal content in ore
  • Rubidium: 2% of ASP on metal content in ore
  • Zirconium: 1% of ASP on metal content in ore
  • Graphite:
    • 80% fixed carbon → 2% of ASP
    • <80% fixed carbon → 4% of ASP

The shift from fixed-rate royalty to ad valorem ensures flexibility with market fluctuations, improving the viability of low-grade mineral extraction.

Why India Needed Royalty Reform

1. High Import Dependence

India is 100% import-dependent for lithium, cobalt, nickel, and rare earth elements (REEs).
It imports 60% of graphite, a key component of anodes used in EV batteries.

2. Low Auction Success Rates

Since 2023, only 34 out of 81 critical mineral blocks (42%) found bidders — high royalty rates and pricing ambiguity made projects commercially unattractive.

3. Surging Green-Tech Demand

EV battery requirements are projected to rise 5–6 times by 2030, significantly increasing demand for graphite, zirconium, and REEs.

4. Unviable Mining under Old Rates

Fixed per-tonne royalties hurt miners during global price declines, making low-grade extraction unprofitable.

5. China-Dominated Supply Chains

China processes ~90% of the world’s REEs.
Its export controls have demonstrated the vulnerability of global clean-tech supply chains.

Structural Bottlenecks in India’s Critical Mineral Ecosystem

  • Weak Exploration Capacity: <0.9% of global mineral exploration spending; far lower than Australia (~13%) or Canada (~15%).
  • Limited Processing Capability: India processes <2% of global REEs; refined copper output is just 3% globally.
  • High Capital & Tech Gaps: Private exploration contributes <10% of India’s total spend (vs >60% in mature mining economies).
  • Skilled Manpower Shortage: <20 geologists per million population (Australia: 140+).
  • Fragmented Policy Environment: Regulatory delays and unclear pricing deter bidders.

Way Forward

  • Boost Exploration: Strengthen the National Mineral Exploration Trust (NMET); emulate Australia’s drilling reimbursement model.
  • Domestic Processing: Introduce a PLI-style scheme for refining and processing critical minerals, similar to China’s refining clusters.
  • Fast-Track Clearances: Create a unified portal integrating environment, forest, and concession approvals (Canada’s “one-window” model).
  • Tech & Skills Partnerships: Collaborate with US, Australia, and Japan for mineral processing technologies and workforce training.
  • Strategic Stockpiles: Establish reserves of lithium, cobalt, and REEs, similar to Japan’s JOGMEC model, to cushion supply disruptions.

About Royalty

  • Definition: Statutory payment made by miners to the government (the sovereign owner of mineral resources).
  • Purpose: Ensures states receive fair value while enabling responsible extraction.
  • Legal Basis: Governed by the Second Schedule of the MMDR Act, 1957.
  • Types of Royalty:
    • Unit-based (per tonne)
    • Ad valorem (% of sale value) – preferred for critical minerals
    • Profit-based (share of net earnings)

Western Ghats Classified as a Natural Site of “Significant Concern”

Context: The International Union for Conservation of Nature (IUCN), in its 2025 World Heritage Outlook, has classified the Western Ghats as a natural World Heritage Site of “significant concern” due to increasing ecological pressures, fragmented governance, and climate-induced vulnerabilities.

About the Western Ghats

The Western Ghats, stretching for 1,600 km parallel to India’s western coast, are among the world’s oldest and most biologically diverse mountain systems. They span six states — Gujarat, Maharashtra, Goa, Karnataka, Kerala, and Tamil Nadu.

Global Importance

  • Recognised as one of 36 global biodiversity hotspots.
  • One of India’s four biodiversity hotspots.
  • Inscribed as a UNESCO World Heritage Site (WHS) in 2012 for its exceptional ecological value.

Biodiversity Features

The region supports extraordinary species diversity and endemism, hosting many rare and threatened species such as:

  • Nilgiri Tahr
  • Lion-tailed Macaque
  • Tiger
  • Asian Elephant
    It also contains unique ecosystems like shola forests, montane grasslands, and high-altitude swamps.

Major Threats Highlighted by the IUCN Outlook 2025

1. Climate Change

Increasing temperatures, altered monsoon cycles, and frequent extreme events (landslides, floods, droughts) are forcing sensitive species to migrate into shrinking habitats.

2. Landscape Fragmentation

Linear infrastructure — highways, railways, power corridors, and dams — breaks ecological connectivity and obstructs wildlife movement, increasing human-wildlife conflicts.

3. Monoculture Plantations

Large-scale conversion of native forests into tea, coffee, rubber, and areca plantations reduces biodiversity, weakens soil health, and diminishes natural resilience.

4. Invasive Species

Aggressive non-native trees such as acacia and eucalyptus outcompete indigenous flora, alter nutrient cycles, and disrupt natural ecosystem regeneration.

5. Tourism and Pilgrimage Pressure

Unregulated tourism increases waste generation, air and noise pollution, and disturbs fragile wildlife zones, especially in high-altitude sanctuaries.

6. Governance Gaps

Although the Ghats contain 39 protected areas across six states, jurisdictional overlaps complicate integrated management, leaving corridors poorly protected.

Government Initiatives to Protect the Western Ghats

1. Statutory Protection

  • Forest (Conservation) Act, 1980
  • Wildlife (Protection) Act, 1972
    These govern diversion of forest land and protect wildlife habitats.

2. Protected Area Network

The region includes:

  • 2 biosphere reserves (Nilgiri, Agasthyamalai)
  • 13 national parks (e.g., Silent Valley, Periyar)
  • Several wildlife sanctuaries

3. UNESCO World Heritage Obligations

The 2012 WHS recognition requires state-specific conservation and management plans.

4. ESA Proposals

Based on the Gadgil Committee (2011) and Kasturirangan Committee (2013), the government has proposed Ecologically Sensitive Areas (ESA) to regulate mining, quarrying, construction, and thermal projects.

5. CAMPA Funding

Kerala and Tamil Nadu are using CAMPA resources for shola–grassland restoration, fire-line creation, and invasive species management.

Conclusion

The Western Ghats face increasing ecological and governance pressures. The IUCN’s “significant concern” classification signals the urgency for coordinated conservation, improved regulation, landscape-level planning, and community-based stewardship to safeguard one of India’s richest ecological treasures.

Record Foodgrain Output 2024 –25: India Achieves Highest-Ever Production

Context: India has recorded its highest-ever foodgrain output in 2024–25, registering nearly 8% growth over the previous year. This marks one of the strongest agricultural performance phases in the last decade, supported by MSP-backed procurement, technological adoption, and favourable monsoon patterns.

Key Highlights of the Record Output

1. Total Foodgrain Production

  • Foodgrain output reached 357.73 million tonnes (MT).
  • This marks a rise of 106 MT over 2015–16, reflecting sustained long-term productivity gains.

2. Rice

  • Record production of 1501.84 lakh tonnes.
  • Increased by 123.59 lakh tonnes over 2023–24 due to improved paddy acreage and better kharif rainfall.

3. Wheat

  • Output climbed to 1179.45 lakh tonnes, a 46.53 lakh tonne increase over last year.
  • Supported by high-yield varieties and improved irrigation access.

4. Pulses

  • Production rose to 256.83 lakh tonnes, led by:
    • Chickpea (Chana): 111.14 lakh tonnes
    • Moong: 42.44 lakh tonnes
  • Mission-based interventions helped expand pulse acreage and reduce import reliance.

5. Coarse Cereals

  • Total production: 639.21 lakh tonnes, with maize alone at 434.09 lakh tonnes.
  • Growth driven by diversification and rising demand for feed and ethanol blending.

6. Oilseeds

  • Record 429.89 lakh tonnes, mainly due to:
    • Soybean: 152.68 lakh tonnes
    • Groundnut: 119.42 lakh tonnes
  • Reflects the success of oilseed missions and wider use of improved varieties.

7. Commercial Crops

  • Sugarcane: 4546.11 lakh tonnes
  • Cotton: 297.24 lakh bales
  • Jute: 88.02 lakh bales

Drivers Behind the Record Production

1. MSP-Backed Expansion

  • Strong procurement support raised farmer confidence.
  • Example: PM-AASHA bolstered tur–urad procurement, aiding pulse expansion.

2. Mission-Mode Productivity Gains

  • Oilseed and pulse missions improved seed varieties, extension services, and input access.
  • Example: Self-Reliance in Pulses Mission strengthened chana & moong yield.

3. Technological Adoption

  • Hybrid seeds, biofertilisers, mechanisation, and drone-based nutrient spraying raised per-acre productivity.
  • Supported by the Sub-Mission on Seeds & Planting Material (SMSP).

4. Better Water Management

  • PMKSY – Per Drop More Crop expanded micro-irrigation and watershed projects, stabilising yields.

5. Crop Diversification

  • Higher acreage in maize, soybean, mustard, and sugarcane boosted overall output.
  • Supported by the National Food Security Mission (NFSM).

6. Favourable Monsoon

  • IMD reported normal rainfall pockets in key kharif regions during 2024, aiding rice, pulses, and oilseeds.

Significance of the Record Harvest

  • Food Security Strengthened: FCI + state stocks exceed 500 lakh tonnes.
  • Reduced Import Dependence: Lower edible oil (₹1–1.3 lakh crore) and pulse import bills.
  • Higher Farmer Income: Chana procurement up 20–25%; coarse cereals also saw strong purchases.
  • Inflation Control: Increased supply helps moderate CPI Food Inflation (~45% weight).
  • Export Boost: Surplus maize, rice, oilseeds lifted agri-exports by 6.7% in H1 FY25.
  • Climate Resilience: Millet area rose >5%, strengthening adaptation capacity.

CE20 Cryogenic Engine: ISRO Tests Bootstrap Mode Start

Context: ISRO has successfully demonstrated the bootstrap mode start on the CE20 cryogenic engine, which powers the upper stage of the Launch Vehicle Mark-3 (LVM3).
This marks a major technological milestone, proving that the engine can restart autonomously in space without external start-up systems, enabling multi-orbit missions with no payload penalties.

image 27

What is Bootstrap Mode?

Bootstrap mode is a method where a rocket engine initiates its own start-up sequence using its internal fuel flow and system pressure, without relying on external gas bottles, pyrotechnic starters, or auxiliary devices.

This leads to lighter, simpler, and restartable cryogenic engines—crucial for missions requiring multiple injections such as GTO → GEO, constellation deployments, and deep-space manoeuvres.

Significance of the Test

  • Enables in-orbit restarts, a capability essential for advanced mission profiles.
  • Improves LVM3’s competitiveness for multi-burn commercial missions.
  • Reduces dependency on heavy external start-up systems, improving payload capacity.
  • Boosts India’s emerging heavy-lift and human-spaceflight architecture.

About the CE20 Cryogenic Engine

  • Class: India’s first fully indigenous 200 kN-class cryogenic engine (~20–22 tonnes thrust).
  • Stage: Powers the C25 upper stage of LVM3.
  • Propellants:
    • Liquid Oxygen (LOX)
    • Liquid Hydrogen (LH₂)
    • Operates on a gas-generator cycle optimised for high-altitude performance.
  • Operational Record:
    • In service since 2014–15 developmental flights.
    • Used in Chandrayaan-2, Chandrayaan-3, and all LVM3 commercial launches including OneWeb missions.
  • Role: Enables high specific impulse required for GTO, Earth escape, and lunar transfers.

What is a Cryogenic Engine?

A cryogenic engine burns liquid hydrogen and liquid oxygen stored at temperatures below –250°C.
These engines deliver high efficiency and thrust-to-weight ratio, making them essential for heavy payloads and deep-space missions. They are, however, complex due to extreme temperatures and precision requirements.

About the LVM3 Rocket

  • Class: India’s heaviest operational launcher.
  • Capability:
    • 4–4.5 tonnes to GTO
    • 8 tonnes+ to LEO
  • Stages:
    • S200 solid boosters
    • L110 liquid core stage
    • C25 cryogenic upper stage (CE20 engine)
  • Achievements:
    • Chandrayaan-2 and 3
    • OneWeb commercial missions
    • Selected as the launch vehicle for Gaganyaan after human-rating modifications.
  • Reliability: Strong success record since 2017, establishing India in the global heavy-lift sector.

Human-Rated LVM3 for Gaganyaan

A specialised version of LVM3 with:

  • Strengthened structures
  • Redundant systems
  • Upgraded CE20 engine
  • Enhanced safety margins
    This variant meets crew-safety standards required for India’s first human spaceflight mission.

Retrospective Environmental Clearances: Supreme Court Recall and Its Implications

Context: On 18 November 2025, a 2:1 majority of the Supreme Court recalled its May 2025 Vanashakti judgment, which had prohibited the granting of ex-post-facto environmental clearances (ECs). The recall reopens the legal pathway for granting environmental approvals after a project has already begun construction or operation, subject to conditions.

What Was the Vanashakti Judgment (May 2025)?

The Supreme Court’s earlier ruling had taken a strict environmental protection stance. It held that:

  • Retrospective ECs are “gross illegality” and fundamentally opposed to environmental rule of law.
  • The 2017 Notification and 2021 Office Memorandum, which allowed post-facto approvals, were struck down.
  • It emphasised that regularising illegal construction weakens the Environment (Protection) Act, 1986 and contradicts the precautionary principle.

Grounds for Recalling the Judgment (Nov 2025)

The majority reconsidered the ruling for three key reasons:

1. Legal Consistency

The Court noted that earlier Supreme Court cases —

  • Pahwa Plastics Pvt Ltd (2022)
  • D. Swamy vs KSPCB (2021)

— had allowed post-facto ECs in exceptional circumstances.
To avoid contradiction, the Court recalled the Vanashakti judgment for a fresh, larger review.

2. Economic Impact

The May ruling risked demolition or shutdown of projects valued at ~₹20,000 crore, including pending expansions and partially completed facilities.

3. Public Interest

Essential public infrastructure —

  • Hospitals,
  • Medical colleges,
  • Airports

— would face severe delays, affecting public welfare and regional development.

Justice Bhuyan’s Dissent: A Strong Environmental Stand

Justice Bhuyan disagreed with the recall, arguing:

1. Earlier permissive rulings were per incuriam

He held that Pahwa Plastics and D. Swamy ignored binding precedents such as:

  • Common Cause (2017)
  • Alembic Pharmaceuticals (2020)

Both emphasised that prior EC is mandatory and violations cannot be lightly condoned.

2. Precautionary Principle is non-negotiable

He stressed that post-facto ECs defeat the core purpose of environmental regulation — preventing harm before it occurs rather than legalising it after destruction is done.

Environmental Clearance Framework in India

Environmental clearances operate under the EIA Notification, 2006, issued under the Environment (Protection) Act, 1986.

Key Features

  • Mandatory prior EC for 39+ categories (mining, infrastructure, industry, power, river valley).
  • Category A projects → appraised by MoEFCC (Central).
  • Category B → appraised by SEIAA (State).
  • Expert Appraisal Committees (EAC/SEAC) conduct technical scrutiny.
  • Public hearing mandatory for Category A & B1, except defence/strategic and small-scale projects.
  • Validity: Mining (30 yrs), River valley (10 yrs), Industry/Infrastructure (7 yrs).

Conclusion

The Supreme Court’s recall highlights a fundamental tension between environmental protection and economic-development imperatives.

The upcoming review will determine whether India’s environmental governance framework prioritises the precautionary principle or accommodates post-facto approvals for broader public and economic considerations.

India to Host Global Big Cats Summit in 2026

Context: At COP30 in Belém (Brazil), India announced that it will host the Global Big Cats Summit in New Delhi in 2026.
The summit will be held under the framework of the International Big Cat Alliance (IBCA) — a global initiative led by India to protect the world’s big cat species.

India’s Big Cat Landscape

1. Species Diversity

India is home to five of the seven big cat species recognised by IBCA:

  • Tiger
  • Asiatic Lion
  • Leopard
  • Snow Leopard
  • Cheetah
    (Jaguar and Puma are not native to India.)

2. Tigers

  • India hosts 3,682 tigers (2024 estimate) — 75% of the world’s wild tiger population.
  • Madhya Pradesh leads with 785 tigers, followed by Karnataka and Uttarakhand.
  • India achieved its global Tx2 target (doubling tiger numbers) four years early, in 2018.

3. Asiatic Lions

  • India is the only country with wild Asiatic lions.
  • Population grew from 327 (2001) to 891 (2025) — a 172% rise.
  • Found exclusively in the Gir landscape of Gujarat.

4. Leopards

  • India’s leopard population stands at 13,874.
  • Madhya Pradesh, Maharashtra, and Karnataka host the highest numbers.

5. Snow Leopards

  • India recorded 718 snow leopards in 2024.
  • Found mostly in Ladakh, Uttarakhand, and Himachal Pradesh.

6. Cheetahs (Project Cheetah)

  • India currently has 27 cheetahs, including 16 cubs born in India.
  • 20 adult cheetahs were translocated from Africa:
    • 8 from Namibia
    • 12 from South Africa
  • 8 more cheetahs are scheduled to arrive from Botswana.

International Big Cat Alliance (IBCA)

About IBCA

A treaty-based intergovernmental organisation dedicated to conserving the world’s seven big cats:
Tiger, Lion, Leopard, Snow Leopard, Cheetah, Jaguar, and Puma.

Launch & Background

  • Launched in 2023 by PM Narendra Modi during the 50-year celebration of Project Tiger.
  • Inspired by India’s leadership in tiger conservation.

Objectives

  • Halt the decline of big cat populations.
  • Strengthen cooperation among big-cat range countries.
  • Promote funding, capacity building, science-based conservation, and anti-poaching efforts.

Governance Structure

Modelled on the International Solar Alliance (ISA):

  • Assembly of Members
  • Standing Committee
  • Permanent Secretariat → based in New Delhi

Membership

  • 27 countries have given consent to join.
  • Five countries have ratified the Framework Agreement:
    • India
    • Nicaragua
    • Eswatini
    • Somalia
    • Liberia
  • Membership is open to all UN member states, including both range and non-range countries.

Conclusion

India’s hosting of the Global Big Cats Summit solidifies its leadership in global wildlife conservation.

With strong domestic successes — from tiger recovery to lion protection — and an international platform through IBCA, India aims to foster a coordinated global effort to secure the future of big cats across continents.

Cold Wave Conditions in India: Causes, Criteria and Impacts

Context (TH): The India Meteorological Department (IMD) has issued a cold wave warning for several districts in Telangana, highlighting an unusual southward spread of cold-wave conditions. Telangana is also the only South Indian state included in IMD’s core cold-wave zone.

What is a Cold Wave?

A cold wave refers to an abrupt and significant drop in temperature below the normal climatological average of a region during winter.

Role of IMD

The India Meteorological Department monitors winter temperatures and issues colour-coded warnings (Green, Yellow, Orange, Red).
IMD uses minimum temperature thresholds and deviations from the long-term average to classify cold-wave intensity.

Climatological Baseline

Normal winter temperature values are based on IMD’s 1981–2010 climatology dataset.

Criteria for Declaring Cold Wave

1. Plains

Cold wave declared when:

  • Minimum temp ≤ 4°C, or
  • Minimum temp ≤ 10°C and 4.5°C–6.4°C below normal

2. Hilly Regions

  • Minimum temp ≤ 0°C, and 4.5°C–6.4°C below normal

3. Coastal Regions

  • Minimum temp ≤ 15°C and ≥4.5°C below normal

Severe Cold Wave

Declared when:

  • Minimum temp ≤ 2°C, or
  • Temperature is ≥6.5°C below normal

Why Do Cold Waves Occur in India?

1. Western Disturbances

The passage of Western Disturbances brings cold, dry north-westerly winds from the Himalayas and Central Asia.

2. High-Pressure Systems

The Siberian High intensifies and pushes cold continental air masses toward India.

3. Himalayan Snowfall

More snowfall → stronger cold air advection into the northern plains.

4. Clear Skies

Absence of clouds = strong nighttime radiative cooling, causing sharp temperature drops.

5. Dense Fog

Fog blocks daytime solar radiation, worsening cold conditions.

6. La Niña Events

IMD observations show La Niña years bring longer and more intense cold waves.

7. Continental Climate

Interior regions far from the sea lack maritime moderation, making them more vulnerable.

Consequences of Cold Waves

1. Health Risks

  • Hypothermia
  • Frostbite
  • Asthma & COPD exacerbation
  • Cardiovascular stress due to vasoconstriction
    India records ~824 annual deaths due to cold exposure.

2. Agricultural Losses

  • Frost damage to crops
  • Reduced livestock productivity
  • Stress on horticultural crops during flowering/fruiting

3. Infrastructure & Transport

  • Fog-induced delays in rail, road, and air transport
  • Power demand surges → outages
  • Water pipelines may freeze in northern hill states

About the India Meteorological Department (IMD)

  • Established in 1875, IMD is India’s National Meteorological Service.
  • Functions under the Ministry of Earth Sciences (MoES).
  • One of six Regional Specialized Meteorological Centres (RSMCs) under WMO.
  • Provides:
    • Meteorological observations
    • Weather forecasts
    • Disaster warnings for weather-sensitive sectors
cold wave in india infographic

Conclusion

Cold waves are a recurring winter hazard in India, driven by large-scale atmospheric circulation, local geography, and global climate patterns.

With rising climatic variability, timely IMD alerts, climate-resilient agriculture, and public health preparedness have become essential for reducing cold-wave impacts.

Precision Biotherapeutics: India’s Push Toward Next-Gen Personalised Medicine

Context: The Department of Biotechnology (DBT) and BIRAC have placed Precision Biotherapeutics as a national priority under the BioE³ Policy (Bioeconomy for Emerging India Ecosystem). This signals India’s commitment to building capabilities in personalised, gene-based, targeted and molecular therapies — the future of advanced medicine.

What are Precision Biotherapeutics?

Precision biotherapeutics are personalised, molecular-profile-based medical interventions designed using genomics, proteomics, bioinformatics, gene editing, RNA technologies, engineered cells, biologics, and AI-driven drug design.

They represent a shift from the traditional, symptom-based approach to root-cause correction at the level of genes, cells, or molecular pathways.

image 17

Key Technology Pillars

  1. Genomic–Proteomic Profiling
    Identifies patient-specific mutations, biomarkers, and disease signatures enabling personalised drug design.
  2. Gene & Cell Editing Technologies
    Includes CRISPR/Cas9, CAR-T therapy, siRNA, and AAV (Adeno-Associated Virus) vectors for targeted or curative interventions.
  3. mRNA & Nucleic Acid Therapeutics
    Synthetic RNA can act as programmable instructions to produce missing or corrective proteins within cells.
  4. AI-Driven Drug Discovery
    Uses machine learning for molecular docking, target prediction, toxicity screening, and accelerated drug development.

Significance of Precision Biotherapeutics for India

1. Targeted Cure Potential

Unlike general drugs, precision therapies directly treat root-cause mutations.
Example: CRISPR-based thalassemia therapy (Casgevy) approved by the US FDA and UK regulators in 2023.

2. Addressing India’s NCD Burden

Nearly 65% of deaths in India are due to non-communicable diseases. Standard medicine often fails for complex cancers, rare diseases, cardiometabolic disorders; precision medicine provides accurate, personalised solutions.

3. India-Specific Genomic Needs

India’s extreme genetic diversity means therapies developed abroad may not work optimally. Indigenous precision platforms are essential for “India-specific genotype therapies.”

4. Economic & Innovation Opportunity

The global precision biotherapeutics market is projected to exceed USD 22 billion by 2027, creating opportunities for biotech startups, IP creation, clinical trials, and high-value manufacturing.

Challenges in India

  1. High Therapy Cost
    Global gene/cell therapies cost USD 0.5–2 million (e.g., Zolgensma: USD 2.1M), inaccessible to 99% of Indian households.
  2. Regulatory Gaps
    India still lacks a dedicated CDSCO approval pathway for gene, cell, RNA, and genome-edited products.
    Japan’s PMDA regenerative fast-track is a model India could emulate.
  3. Insufficient Manufacturing Capacity
    India has a shortage of GMP-grade viral vector and biologics facilities.
    China, in comparison, runs 800+ ongoing gene/cell therapy trials.
  4. Skill Shortage
    India has only a few trained clinical geneticists compared to 4,000+ medical geneticists in the US.
  5. Ethical & Data Governance Concerns
    India lacks a specific genomic data protection law for biobanks and large datasets like IndiGen and GenomeIndia.

Way Forward

  • Dedicated Regulatory Pathway:
    Establish a CDSCO Gene–Cell Therapy Division with accelerated approvals.
  • Biomanufacturing Expansion:
    Create viral-vector & biologics GMP hubs under PLI-Biopharma.
  • Genomic Data Governance:
    Enact a bio-banking and consent law, aligned with EU-GDPR norms.
  • Affordability & Insurance Models:
    Pilot PM-JAY risk pooling for high-cost therapies.
  • Talent Pipeline:
    Launch national fellowships in genomic medicine & AI-biotech; integrate DBT–IIT–AIIMS translational tracks.
image 18

US Tariff Impact on India’s Export Economy

Context : The United States has imposed sharp tariff hikes on selected Indian products, triggering a decline in bilateral trade and amplifying short-term economic volatility. Beginning August 2025, the US levied a 50% tariff on designated Indian goods, consisting of:

image 19
  • 25% penalty tariff linked to India’s discounted purchases of Russian crude oil, and
  • An additional 25% import duty across sensitive categories.

This marks one of the most significant tariff escalations in recent India–US trade relations.

Major Impacts of the Tariffs

1. Export Decline

India’s outbound trade registered a sharp contraction:

  • October exports ↓ 9%, following
  • A deeper 12% fall in September, leading to
  • A cumulative 11.8% decline in goods exports.

2. Record Trade Deficit

India’s trade deficit widened to $41.68 billion in October, the highest on record, driven by:

  • Higher imports of gold,
  • Lower demand for Indian goods in the US market.

3. Bilateral Trade Surplus Shrinks

India’s long-standing trade surplus with the US fell by 54%, reducing a key buffer in India’s external trade position.

4. Sectoral Stress

Indian labour-intensive exporters faced steep price disadvantages compared to ASEAN and Chinese competitors.

  • Engineering goods: ↓ ~16%
  • Textiles & apparel: ↓ 8.34%
  • Gems & jewellery: ↓ 25%

5. Resilient Sectors

Despite overall contraction, two sectors showed robust performance:

  • Electronics: Exports increased 25%, driven by smartphone and semiconductor-linked production.
  • Pharmaceuticals: Continued stable double-digit growth due to strong US generics demand.

Government Support Measures

India has activated a combination of fiscal, credit, and regulatory interventions to stabilise exports:

1. Export Promotion Mission (EPM)

The Cabinet approved a ₹25,060-crore scheme (FY 2025–30) to strengthen logistics, standards, branding, and global market access.

2. Credit Guarantee Scheme for Exporters (CGSE)

A ₹20,000-crore scheme to provide collateral-free credit, easing financial strain on MSME exporters.

3. RBI Liquidity Relief

The Reserve Bank of India announced a four-month moratorium on principal and interest payments for affected exporters, ensuring short-term liquidity.

4. QCO Rollback

To reduce compliance costs and prevent supply bottlenecks, the government rolled back Quality Control Orders on key chemical intermediates.

Conclusion

The US tariff measures have caused immediate pressure on India’s export competitiveness and widened the trade deficit. However, India’s policy response—spanning credit support, export promotion, easing of compliance norms, and sector-specific interventions—aims to cushion the economy in the short run.

Over the long term, India must diversify markets, enhance high-value manufacturing, and strengthen resilient supply chains to withstand global tariff shocks.

Chennai Port to Procure Green Tug under the Green Tug Transition Programme (GTTP)

Context: The Chennai Port Authority has launched the procurement process for its first green tug under the Green Tug Transition Programme (GTTP)—a major national initiative to decarbonise India’s port operations. The move marks a significant step toward the adoption of cleaner, non-fossil-fuel propulsion systems in India’s maritime sector.

image 20

What is a Green Tug?

A tugboat is a compact, high-power vessel used to push or pull large ships for docking, undocking, and manoeuvring inside ports.

  • A battery-electric tug (e-tug) achieves 100% elimination of nitrogen and carbon emissions.
  • Hybrid green tugs can reduce emissions by 25%–35%, offering an intermediate transition option before full electrification.

The Chennai Port’s proposed tug will use battery-electric propulsion, with built-in flexibility for future upgrades to methanol or green hydrogen systems.

About the Green Tug Transition Programme (GTTP)

The GTTP is an initiative of the Ministry of Ports, Shipping and Waterways (MoPSW) aimed at replacing diesel tugs with green, non-fossil-fuel propulsion systems.

Key Features

1. Policy Alignment

GTTP supports multiple national maritime and climate strategies:

  • Panch Karma Sankalp
  • Maritime India Vision (MIV) 2030
  • Maritime Amrit Kaal Vision 2047
  • India’s Net-Zero Target (2070)

2. Nodal Agency

The programme is led by the National Centre of Excellence in Green Port & Shipping (NCoEGPS).

3. Technology Pathway

Transition will occur in stages:

  1. Battery-electric tugs
  2. Hybrid diesel-electric tugs
  3. Methanol-based propulsion
  4. Green hydrogen fuel-cell systems

4. Implementation Roadmap

  • Phase 1 (2024–2027):
    Four major ports must procure at least two green tugs each.
  • Phase 2 (2027–2030):
    At least 50% of tug fleets in pilot ports must shift to green technology.
  • Mandates:
    • All new tugs after 2033 must comply with GTTP standards.
    • All tugs at major ports must be 100% green by 2040.

Significance

  • Supports the UN Sustainable Development Goal 14 (Life Below Water).
  • Reduces maritime emissions and accelerates India’s shift toward green shipbuilding and eco-friendly port operations.
  • Aligns with national decarbonisation goals:
    • MIV 2030: 30% reduction in carbon emissions per tonne of cargo
    • Maritime Amrit Kaal Vision 2047: 70% reduction in carbon emissions per tonne of cargo

The procurement of Chennai Port’s first green tug is therefore not a standalone development—it is part of a long-term structural transformation of India’s maritime infrastructure.

Soil Organic Carbon: The Foundation of Soil Health

Context: A recent ICAR study has found that climate change and unbalanced fertiliser use are accelerating the decline of Soil Organic Carbon (SOC) in India’s farmlands.
SOC is vital for soil fertility, water retention, and carbon sequestration — making it central to both food security and climate resilience.

Key Findings of the ICAR Study

  • SOC levels increase with elevation and decline with temperature, explaining higher carbon retention in hilly regions compared to plains.
  • Haryana, Punjab, and western Uttar Pradesh show the highest decline due to overuse of urea and phosphorus-based fertilisers.
  • Low SOC is directly linked to micronutrient deficiency and declining crop yields.

Understanding Soil Organic Carbon

  • SOC is the carbon component of soil organic matter, accounting for 50–60% of its weight.
  • Healthy soils contain 1–6% SOC, derived from decomposed plants, roots, and microbes.
  • SOC is the key determinant of soil fertility, microbial activity, and moisture retention.

Determinants of SOC

  • Temperature: Cooler regions retain more carbon; warmer climates accelerate decomposition.
  • Rainfall: Moderate rainfall aids vegetation growth; arid zones lose carbon through erosion.
  • Soil Texture: Clay soils preserve carbon better than sandy soils.
  • Vegetation Type: Grasslands and forests differ in carbon storage patterns.
  • Topography: Slopes lose SOC due to erosion, while valleys accumulate it.

Benefits of High SOC

  1. Improves soil structure and resistance to erosion.
  2. Enhances nutrient availability and microbial balance.
  3. Increases water retention and irrigation efficiency.
  4. Acts as a carbon sink, mitigating climate change.
  5. Reduces dependence on chemical fertilisers.

Factors Reducing SOC

  • Intensive tillage and residue burning.
  • Overuse of chemical fertilisers.
  • Deforestation and land-use change.
  • Warming temperatures and soil erosion.

Way Forward

  • Promote organic manures, composting, and biochar.
  • Encourage no-till and cover cropping practices.
  • Introduce carbon farming incentives and carbon credit markets.
  • Develop soil carbon monitoring systems under ICAR–NBSS&LUP.
  • Integrate SOC management into National Mission for Sustainable Agriculture (NMSA).

Conclusion

Soil Organic Carbon is the lifeline of Indian agriculture.

Its conservation is not just an agronomic necessity but a climate imperative — essential for restoring soil vitality, ensuring food security, and achieving India’s carbon neutrality goals.

Nine Years After Demonetisation: Lessons and Realities

Context: Nine years after the 2016 demonetisation drive, police in Ghaziabad uncovered a fraud racket offering to exchange old ₹500 and ₹1,000 notes — indicating that a small underground market for demonetised currency persists.
The episode revives debate on whether the policy achieved its intended economic outcomes.

Background

On 8 November 2016, the Government of India announced demonetisation of ₹500 and ₹1,000 currency notes, which constituted 86% of total currency in circulation, citing objectives such as:

  • Curbing black money and counterfeit currency
  • Promoting digital payments
  • Strengthening formalisation of the economy

Key Data and Trends

  • Currency with the Public: Fell sharply from ₹17.97 lakh crore (Nov 2016) to ₹7.8 lakh crore (Jan 2017).
  • Current Level: ₹37.29 lakh crore (as of Oct 2025, RBI data) — more than double pre-demonetisation levels.
  • Currency-to-GDP Ratio:
    • Pre-demonetisation (2016–17): 8.7%
    • Pandemic peak (2020–21): 14.5%
    • 2025: 11.1%, still higher than the U.S. (7.9%) or China (9.5%).
  • Digital Payments: UPI transactions grew at 49% CAGR (FY23–FY25), with monthly volumes exceeding ₹20 lakh crore.

Analysis

  • Mixed Success: While demonetisation catalysed digital payment adoption, cash usage remains deeply rooted, especially in the informal sector.
  • Temporary Disruption: Short-term liquidity shocks impacted MSMEs, agriculture, and the unorganised sector.
  • Informal Economy: About 80–85% of India’s employment is still informal and cash-dependent.
  • Tax Base Expansion: Direct tax returns grew from 4.9 crore (2016–17) to 8.9 crore (2024–25), suggesting some formalisation effect.
  • Counterfeit Currency: RBI data shows fake note detection decreased by 31% between 2016 and 2024.

Structural Implications

  • Digital Ecosystem: Strengthened through UPI, Aadhaar, and Jan Dhan accounts.
  • Behavioural Change: Increased trust in digital finance, though cash continues as a safety asset.
  • Monetary Stability: Currency-to-GDP ratio declining implies faster GDP growth vis-à-vis cash expansion.
  • Future Challenge: Balancing inclusion with cash-independent growth.

Conclusion

Demonetisation’s legacy is complex — it accelerated India’s digital transformation but failed to permanently reduce cash dependency.
The policy’s long-term impact lies less in cash withdrawal and more in shaping a hybrid economy combining cash resilience with digital innovation.