GS Paper 3

RBI cuts Repo Rate by 25 bps

Context: RBI’s Monetary Policy Committee has decided to cut the repo rate by 25 basis points to 6%. The decision comes amidst heightened global economic uncertainty in the face of reciprocal tariffs announced by the US.  

MPC has slashed the GDP growth to 6.5% in FY26 from 6.7% projected earlier. Retail inflation is expected to be 4% in FY26. 

Relevance of the Topic:Prelims: Repo Rate; Reverse Reo Rate. 

Repo Rate and Reverse Repo Rate

  • Repo Rate: The interest rate that the RBI charges when commercial banks borrow money from it. 
  • Reverse Repo Rate: The interest rate the RBI pays commercial banks when they park their excess cash.

Reduction of Repo Rate: Promotes Economic Activity

  • When the RBI wants to encourage economic activity in the economy, it reduces the repo rates. 
  • This enables commercial banks to bring down the interest rates they charge (on their loans) as well as the interest rate they pay on deposits. Interest rates on home, personal, vehicle loans and deposit loans come down. 
  • This incentivises people to spend money as keeping their savings in the bank pays back a little less interest.
  • Businesses are incentivised to take new loans for new investments as new loans now become cheaper. 

Increase in Repo Rate: Control Inflation:

  • When the RBI wants to control inflation, it increases the repo rate. 
  • Banks charge more interest to their borrowers, as they have to pay more interest to borrow from the RBI. 
  • At a macro level, this inhibits people from borrowing money as well as from spending, which in turn reduces the amount of money in the market, and thus negates inflation.

Repo and Reverse repo rates are often referred to as the “benchmark” interest rates in the economy. Using these rates, the RBI sets the tone for all other interest rates in the banking system, and in the broader economy.

Why is Active Mobility Necessary in India?

Context: Active mobility in India has gained attention due to increasing traffic congestion, pollution, health concerns, and rising pedestrian deaths. 

Active Mobility

  • Active mobility refers to modes of transportation that use human power instead of a motorised form of mobility. 
  • Active modes of transport include walking, cycling, skateboarding, and other non-motorised modes that are used for travel and not recreational activities. 
  • As stated by the World Health Organisation (WHO), active mobility in all its forms has economic, social, environmental, and health benefits.

Benefits of Active Mobility:

  • Reduced expenditure on fuel and transportation.
  • Promote sustainable modes of transportation; reduced traffic congestion; cleaner air (reduce India’s 12% carbon emissions from road transportation).
  • Lower healthcare costs due to enhanced public health.
  • Make cities more vibrant, climate-conscious and boost the local economy. 

Roadblocks to Active Mobility in India

  • Lack of adequate pedestrian and cyclist-friendly infrastructure. As of 2021, more than 85% of roads do not meet the minimum safety requirements for walking and cycling.
  • Availability of low-c-xost, alternative modes of motorised transport. 
  • Extreme weather conditions; long distances of travel discourage people from adopting active modes of transport.
  • Social perceptions act as significant barriers; owing vehicles are associated with higher social status.

Global Case Studies

  • Netherlands: With more than 35,000 km of dedicated cycling lanes, the Netherlands is a global leader in promoting active mobility through cycling.
  • European Union: EU’s Mobility and Transport department prioritises promoting walking and cycling as a means of transport to enable more sustainable mobility. Vision Zero, aims to mitigate the number of incidents between pedestrians, cyclists, and motor vehicles. 

Active mobility is key to achieve the goals of Smart Cities Mission, which envisions safer, greener, and more inclusive urban spaces. With over 1.5 lakh road accident deaths (2022), promoting active mobility will enhance livability and make cities truly smart, sustainable, and centered around people.

SMART CITIES MISSION  

  • Launched: 2015
  • Objectives: Promote cities that provide core infrastructure, clean and sustainable environment and give a decent quality of life to their citizens through the application of ‘smart solutions’.
  • Nature: Centrally-sponsored scheme
  • Nodal Ministry: Ministry of Housing and Urban Affairs 

Six Fundamental Principles: 

  • Citizen Participation: Involving citizens in planning and decision-making processes.
  • Inclusive Development: Benefits reach all sections of society, including the poor and vulnerable.
  • Sustainability: Promoting environmental, social, and economic sustainability.
  • Integrated Infrastructure: Coordinated planning across sectors like water, energy, transport, and waste.
  • Innovation and Technology: Using smart solutions to enhance services and governance.
  • Accountability and Transparency: Ensuring efficient delivery and monitoring of services.
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Strategy of Smart City Mission: 

  • Area-Based Solutions: 
    • Retrofitting: Improve existing areas with smart planning to enhance efficiency and livability.
    • Redevelopment: Replace old infrastructure with new layouts, better facilities, and higher density.
    • Renewal: Develop vacant land (250+ acres) using smart planning and financing tools, with affordable housing.
  • Pan-city ICT Intervention: Apply smart technology to existing city-wide infrastructure for better service delivery. 

Core infrastructure elements in a Smart City are as follows:

  • Adequate water supply
  • Assured electricity supply
  • Sanitation including solid waste management
  • Efficient urban mobility and public transport
  • Affordable housing, especially for the poor
  • Robust IT connectivity and digitalisation
  • Good governance, especially e-governance and citizen participation
  • Sustainable environment
  • Safety and security of citizens, particularly women, children and the elderly
  • Health and Education.

Facial Recognition Technology 

Context: Delhi Police is planning a city-wide rollout of facial recognition technology (FRT) later this year in 2025. Experts warn that the increasing integration of such technology across platforms may come at a cost.  

Relevance of the Topic: Prelims: About Facial recognition technology.

Facial Recognition Technology: 

  • Facial recognition is a cutting-edge biometric technology that identifies or verifies an individual by analysing their facial features. 
  • The algorithm-based technology creates a unique digital map of a person’s face by detecting and analysing facial features such as the distance between the eyes, shape of the jaw etc. This faceprint is then compared to a database of stored images for identity verification or identification. 

Automated Facial Recognition System (AFRS)

  • AFRS uses a large database containing millions of facial images including those from CCTV footage, social media, and official records. 
  • When an unidentified image is captured (E.g., from a surveillance camera), AFRS uses artificial intelligence to find a matching pattern in the database and identify the person.
Automated Facial Recognition System (AFRS)

There are two types of Matching:

  • 1:1 Verification: Confirms if the face matches a single image (e.g., unlocking your phone).
  • 1:N Identification: Compares the face to an entire database to identify an unknown individual (E.g., identifying suspects in law enforcement). Delhi Police usually use FRT for 1:N identification.

Limitations of FRT

  • Accuracy Issue: The system may wrongly identify someone (false positive) or fail to recognise the correct person (false negative). Accuracy drops with poor angles, low light, or occlusions like masks or sunglasses.
  • Limited Datasets: Studies have shown higher error rates for women, children, and people with darker skin tones, especially, when systems are trained on datasets lacking diversity. Delhi Police treat matches above 80% similarity as positive results, while matches below 80% as false positive results which require additional corroborative evidence. 

Facial Recognition System in Delhi: 

  • Since 2018, the Delhi Police has been using the Facial Recognition System (an Israeli software) to monitor high-security events in the Capital. 
  • FRS vans are armed with cameras, computers, and automatic number plate readers (configured to scan faces instead of license plates) and stationed in different parts of the two districts every day, scanning faces and alerting them of potential hits.
  • Apart from fixed cameras, Prakhar vans with mobile cameras scan crowds and crime-prone areas. 

Safe City Project

  • Delhi Police plans to expand FRS under the Safe City Project with 10,000 high-resolution CCTV cameras across the capital, whose LIVE feed will be beamed directly to a command centre at the police headquarters. 
  • Implementation: Centre for Development of Advanced Computing, under the Ministry of Electronics and Information Technology. 
  • CDAC will be responsible for setting up C41 (Integrated Command, Control, Communication & Computer Centre) where integrated video feeds will be beamed. These feeds will be analysed in real time, with AI models capable of identifying over 20 faces in a crowd, even under partial visibility or disguised appearances.

However, its use raises serious concerns about privacy and misuse. Without a clear legal framework, it has a chilling effect on civil liberties, there is a risk of misidentifying individuals, profiling, and violating fundamental rights. 

De Extinction of Dire Wolf

Context: Colossal Biosciences, a US-based bioscience company, claimed that it had revived dire wolves as the world’s first successfully de-extinct animal.

Relevance of the Topic:  Prelims: Key facts related to Dire wolf and gene editing. 

De-Extinction of Dire Wolf

  • Scientists extracted and sequenced DNA from two ancient dire wolf specimens — a 13,000-year-old tooth and a 72,000-year-old ear bone. This analysis identified 20 key genetic differences between dire wolves and their closest living species, grey wolves.
  • Using CRISPR technology, researchers edited the 14 genes in grey wolf DNA to incorporate 20 key genetic variants associated with dire wolf traits, such as larger size, broader heads and thicker fur. ​
  • The genetic material was inserted into an egg cell from a domestic dog. Once the embryos were developed, they were implanted into surrogate dogs. Consequently, the genetically engineered pups were born (named Romulus, Remus, and Khaleesi). 
  • Controversy: While Colossal Biosciences referred to these animals as “de-extincted” dire wolves, experts argue that they are genetically modified grey wolves rather than true representations of the extinct species.
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Dire Wolf

  • Dire wolves were large canines that dominated southern Canada and the US before their extinction about 13,000 years ago. 
  • Dire wolves resemble the grey wolves sharing 99.5% of their DNA. However, dire wolves are not the ancestors of grey wolves. The two species diverged millions of years ago and evolved separately.
  • Physical Appearance: Dire wolves are larger with white coats, more heavily built, thicker legs, broader heads and shoulders, and more pronounced snout. Dire wolves could be 3.5 feet tall, >6 feet in length, and weigh up to 68 kg.
  • Dire wolves hunted horses, bison, and possibly mammoths. One of the possible reasons behind their extinction is the extinction of its prey species.
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Gene Editing

  • Gene editing is a scientific method where scientists modify DNA — the genetic code that determines how an organism looks, grows, and behaves. Think of DNA like a biological instruction manual made up of letters (A, T, C, G). With gene editing, scientists can add, delete, or replace parts of that manual to change how an organism develops.
  • CRISPR (Clustered Regularly Interspaced Short Palindromic Repeats) is the most popular gene-editing technology that allows precise modification of DNA sequences.  

Iron Opacity in the Sun and its Implications on Stellar Models

Context: Scientists have found a mismatch between the predicted opacity of iron inside the Sun and what experiments are now showing. This mismatch could affect solar models, and in our understanding of all stars, galaxies and even the universe's evolution.

Relevance of the Topic: Prelims: Facts related to iron opacity in the Sun. 

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What is Opacity?

  • Opacity is the measure of how much light or radiation a material can absorb
  • Higher opacity = More absorption of light = Less light transmission. 
  • In the context of the Sun, opacity determines how energy generated in the core moves toward the surface.

Why does Iron Opacity matter in the Sun?

  • The Sun is used as a model to study and understand other stars and stellar evolution. Energy transport within the Sun depends on how much radiation is absorbed by elements like iron.
  • If opacity is underestimated, temperature profiles, element abundances, and other stellar properties in models become inaccurate. 

Observations vs Models

  • Until the 2010s, studies showed: 30–50% less carbon, oxygen, nitrogen in the Sun than predicted. Solar models still predicted brightness and neutrino output correctly.
  • A 2015 study tested iron under Sun-like conditions and found its opacity was 30-400% higher than expected.
  • Full clarity will come with absolute opacity measurements – that is still in progress.

Implications for Astrophysics

  • Discrepancy in opacity affects understanding of Stellar internal temperatures; Elemental composition and transport; Nuclear fusion rates and energy generation
  • Larger implications: Inaccurate prediction of planetary habitability; Miscalculation of galactic evolution; Errors in modeling cosmic structures and interstellar chemistry. 

3D Printing Technology

Context: Recently, Japan has unveiled a 3D-printed train station, claimed to be the world’s first. The new station’s components were 3D-printed elsewhere and assembled on-site in less than six hours.

Relevance of the Topic: Prelims: Key facts about 3D Printing Technology.

Additive Manufacturing:

  • Additive manufacturing or 3D printing uses computer-aided designing to make prototypes or working models of objects by laying down successive layers of materials such as plastic, resin, thermoplastic, metal, fibre or ceramic. With the help of software, the model to be printed is first developed by the computer, which then gives instructions to the 3D printer.
Additive Manufacturing:

Advantages:

  • Low wastage: Enables the production of components and parts while utilizing significantly less material than traditional manufacturing.
  • Efficient: Reduces production costs and saves time. 
  • Boosts Innovation: Enables new design engineering possibilities. 
  • Localised manufacturing: Localized, on-demand production, reducing the logistical burden
    • E.g., Facilitates the creation of novel material combinations for armour, self-heating military clothing, and ammunition.

AM & Biotechnology could be used to create adaptive camouflage, cloaking devices, or lighter, stronger, and—potentially—self-healing body and vehicle armour.

  • Supply chain resilience: Alternative source of supply, reducing dependence on traditional suppliers and increasing supply chain resilience. This is particularly relevant in times of disruptions, such as natural disasters, geopolitical tensions, or pandemics.

Applications

  • Aerospace and Defence: Manufacture and repair spare parts of aircraft and weapons.  
  • Automotive and Electronics parts: Creation of complex geometries and lightweight structures, 3D printing spare parts like engines, interior and exterior parts of luxury vehicles, turbine blades etc. 
  • Construction and Manufacturing purposes. 
  • Consumer Goods like food items, wearables, jewellery, sportswear etc. 
  • Healthcare: 3D printing is used for the creation of patient-specific replicas of bones, organs, and blood vessels, dental prosthetics, surgical planning, regenerative medicine and organ transplantation. 

3D bioprinting is being used in healthcare for the creation of living human cells or tissue for use in regenerative medicine and tissue engineering. Enables the creation of functional organs that can be transplanted into patients in need, reducing the dependence on donor organs and addressing the issue of organ shortages. 

Disadvantages of 3D Printing

  • Restricted Build Size: The chamber size integrated into 3D printers is usually relatively small, thereby restricting the part sizes that you can print. Therefore, any larger item needs to be printed separately and later assembled after its production.
  • Limited Materials: The materials needed during the manufacturing process are limited. 
  • 3D Printing Machines are Expensive: Initial capital required to embark on using 3D printing technology is prohibitively expensive.
  • Post-processing challenges related to finishing. 
  • Copyright issues and risk of counterfeit products. 

Challenges

  • High cost of imports: There are few 3D printers produced domestically. The cost associated with importing industrial-grade 3-D printers is too huge for medium and small-scale industries. 
  • Lack of Awareness: The reach of AM is limited due to a lack of awareness among manufacturing companies for design-prototyping-manufacturing assistance.
  • Lack of AM Standards: In absence of a proper national strategy, private players have refrained from investing in AM sector. 
  • Inadequate Research: Lack of a centralised approach to AM constraints Indian institutions from undertaking intense research on AM-related technologies.
  • Risks Employment: Large-scale use of AM in India may risk the employment of poor assembly workers. 

National Strategy for Additive Manufacturing, 2025

  • National Strategy for Additive Manufacturing aims to increase India’s share in global additive manufacturing to 5 per cent by 2025, with the hope to likely add $1 billion to the gross domestic product by that time.
  • India will aim to achieve certain targets such as 50 India-specific technologies for material, machine and software, 100 new startups for additive manufacturing, and 500 new products and employ at least 1 lakh new skilled workers over the next three years.

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. 

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.

Rising Non-Communicable Disease burden

Context: Non-Communicable Diseases (NCDs) are rapidly rising in India, particularly in the urban areas. Studies have shown increased risks of NCDs for women post-menopause, with a significant rise in diabetes, obesity, fatty liver, and hypertension.

Relevance of the topic: Mains- Role of Urbanisation in increasing the Burden of NCDs; Government Initiatives. 

What are Non-Communicable Diseases?

  • NCDs: Group of chronic diseases that are not caused by infectious agents and typically have a long development period.
  • Diseases: They include a range of conditions such as cardiovascular diseases, cancer, diabetes, chronic respiratory diseases , and mental health disorders.
  • Risk factors for NCDs: Unhealthy diets, physical inactivity, tobacco use, harmful use of alcohol, pollution and environmental factors.
  • According to the World Health Organisation, NCDs account for 71% of all deaths globally, with cardiovascular diseases being the leading cause.
    • As per the WHO’s latest report (2022), 66% of total deaths in India in 2019 were due to NCDs.
    • Older adults (60 and above) have reported the highest infectious, NCDs, disability and injuries.
What are Non-Communicable Diseases?
Non-Communicable Diseases - risk factors

Role of Urbanisation in Increasing the Burden of NCDs:

  • Economic Structure: Urban economies are primarily service-oriented, which reduces the need for manual labor compared to agrarian rural economies. This contributes to the sedentary lifestyle and associated risk of NCDs. 
  • Changing Dietary Patterns: Urban areas often see increased consumption of processed foods, unhealthy fats, and sugars, leading to poor nutrition which are directly related to rising incidence of NCDs. 
  • Environmental Factors: Pollution and the Urban Heat Island effect exacerbate health risks associated with NCDs.
  • Lifestyle Choices: Higher prevalence of alcohol consumption and smoking in urban settings increases the risk of developing NCDs.
  • Family Structure Changes: The shift towards nuclear families in urban areas can lead to mental health issues due to a lack of emotional support from extended family members. 

Initiatives taken by the Government:

  • National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular Diseases and Stroke (NP-CDCS): Implemented since 2010 intends to prevent and control major NCDs (Hypertension, Diabetes, Cardiovascular disease, Cancer, Stroke, Chronic kidney disease, COPD/ Asthma, Non-Alcoholic Fatty Liver Disease, etc).
  • National Action Plan: India has adopted the National Action Plan with specific national targets and indicators aimed at reducing the number of global premature deaths from NCDs by 25% by 2025.
    • The plan was based on the WHO's Global Action Plan for the Prevention and Control of NCDs (2013-2020). UN SDG (Target 3.4) aims to reduce premature mortality from NCDs by one-third by 2030 in the world.
  • Ayushman Bharat Pradhan Mantri Jan Arogya Yojana includes coverage for treatment of NCDs, to over 10 crore families, including cancer.
  • Fit India Movement and promotion of Yoga to encourage people to remain healthy and fit by including physical activities and sports in their lifestyle.
  • National Mental Health Programme and National Tele Mental Health Programme to improve access to quality mental health counselling and care services in the country.

New Pamban Rail Bridge

Context: The Prime Minister of India inaugurated the new Pamban railway bridge which connects the Rameswaram island of the Tamil Nadu coast with Ramanathapuram on the mainland.

Relevance of the Topic: Prelims: Location of Pamban rail bridge. 

Key Facts about Pamban Railway Bridge

  • Connects: Rameswaram or Pamban island on Tamil Nadu coast with Ramanathapuram on the mainland Tamil Nadu. 
  • Length: 2.08 km
  • India’s first vertical lift sea bridge. The bridge features a 72.5-meter vertical lift span that can be raised by 17 meters, allowing for ship movement beneath the bridge. 
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Old Pamban Bridge

  • The 2.05-km long Pamban bridge served as the sole transportation link between mainland Ramanathapuram and Rameswaram Island for over 70 years. 
  • It was completed in 1914, and featured a Scherzer rolling lift span, allowing ships to pass underneath. 
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Pamban Island

  • Pamban or Rameswaram Island is located between peninsular India and Sri Lanka. 
  • It is the largest island in Tamil Nadu by area and hosts the pilgrimage centre Rameswaram.
  • At the eastern tip of the island lies Dhanushkodi, a harbour and a pilgrimage centre. 

India-US Trade Deal Negotiations amid Reciprocal Tariffs

Context: The Ministry of Commerce and Industry has stepped up efforts by expanding its NAFTA division (which handles India’s bilateral trade with the United States, Canada, and Mexico) to strike an early trade deal with the US, and potentially sidestep the 26% reciprocal tariffs. 

Relevance of the Topic: Mains: Impacts of Reciprocal Tariffs on India; India-US Trade deal- challenges.  

US Reciprocal Tariffs on India

  • Recently, the US has imposed 26% reciprocal tariffs on all Indian exports to the US.
  • The US goods trade deficit with India was $45 billion in 2024.
  • India's main exports to the US: Drug formulations and biologicals, telecom instruments, precious and semi-precious stones, petroleum products, gold and other metal jewellery, ready-made garments of cotton, and products of iron and steel.
  • India’s Imports from the US: Crude oil, petroleum products, coal, coke, cut and polished diamonds, electric machinery, aircraft, spacecraft and parts, and gold. 

Impacts of Reciprocal Tariffs over India

1. Potential Negative Impacts:

  • The sectors expected to be most impacted include: Electronics and smart phones, Marine products, gold and other metal jewellery, electrical machinery, textiles. 
  • Global Trade Research Initiative (GTRI) estimates that India’s exports to the US might decline by over 6% or around $5.7 billion in 2025.

2. Window of Opportunity: Relative Tariff Advantage 

  • India has a relative advantage over other countries, as the tariffs over India (26%) are lower than that in other countries, like, China (34%), Thailand (36%), Bangladesh (37%), Vietnam (46%) etc. This differential could encourage the US firms to diversify supply chains away from high-tariff economies towards India. 
  • Certain sectors can benefit, particularly electronics manufacturing, Textiles and apparel etc.

India’s Options

  • Selective Tariff Reductions: Identify sectors where tariff reductions would have minimal domestic impact and could accommodate U.S. interests. India is considering slashing tariffs on 55% of the US exports to India, worth about $23 billion.
  • Negotiating bilateral trade agreement: India can push towards negotiating a bilateral trade deal with the US. If India delays, it could risk losing market share in the US to countries (like Vietnam, Cambodia) which are aggressively pursuing trade deals with the US.
  • Trade diversification with other countries and regional groups, like the UK, European Union, African countries, ASEAN countries etc. to reduce the reliance on the US markets. 

Bottlenecks in negotiating bilateral trade agreement

  • Limited progress on Trade Agreements: India has not yet signed a comprehensive trade agreement with any major Western country, including the US, UK or EU. The major hurdle is India's resistance to incorporating labour and environmental standards, which are often prerequisites for Western trade deals.
  • Data localisation norms: The US has raised objections to India’s data localisation requirements for payment service providers, which restrict foreign firms from freely transferring user data abroad.
  • Weak Intellectual Property Rights (IPR) protection: India remains on the US 'Priority Watch List’ due to delays in patent approvals and the absence of strong laws for trade secret protection. This deters American innovators and firms from entering the Indian market.
  • Non-tarriff barriers: E.g., The US is critical of India’s price caps on coronary stents and knee implants. These controls are viewed as non-tariff barriers that hinder US companies’ ability to operate profitably in India. 

Crisis in Cotton Production in India

Context: India’s cotton economy is not in great shape. India has no surplus in cotton and its yield at 450-kilogram per hectare is one of the lowest, against a global average of 800- kilogram plus.

Relevance of the Topic: Mains: Cotton production in India- challenges and opportunities.

Current Status of Cotton Production in India

  • Declining Output: India's cotton production for 2024–25 is projected at 294 lakh bales (lb)- the lowest since 2008–09. This marks a fall from a peak of 398 lb in 2013–14, representing a nearly 100 lb drop in a decade. 
  • Net negative Exports: Once a major exporter, India cotton imports (30 lb) now exceed exports (17 lb). This shift raises concerns for India's textile and spinning industries. 
image 25
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Global Trade Context and Comparative Advantage: 

  • Favorable US Tariffs on Indian Textiles: Under the US’s reciprocal tariff policy, Indian textiles face a relatively lower import duty (27%) compared to China (54%), Vietnam (46%), Bangladesh, Indonesia and Sri Lanka. Despite these favourable trade terms, India’s declining output limits its ability to capitalise on global export markets.

Fall in Cotton Production- Pink Bollworm (PBW) Crisis: 

  • Cotton lint yields rose from 302 kg/ha in 2002–03 to 566 kg/ha in 2013–14, due to Bt cotton adoption. However, since the PBW resurgence, yields have declined to around 436–437 kg/ha over the last two years.
  • PBW is a monophagous pest that feeds exclusively on cotton bolls, damaging seeds and lint leading to yield loss and fibre discolouration.
  • Resistance to GM Bt Cotton: Bt hybrids carry two genes- cry1Ac and cry2Ab- originally effective against multiple pests. However, PBW developed resistance by 2014, making these genes ineffective.
  • Why did PBW adapt faster? Its exclusive diet (cotton only) allowed faster genetic resistance. A short life cycle (25-35 days) enabled 3-4 generations per crop season, speeding up resistance evolution.

Regulatory Process for GM Crop Approval: Stages of GM crop trials in India:

  • Event Selection Trial: Initial screening of gene effectiveness.
  • BRL-1 (2 years): Confined field trials on <1 acre plots.
  • BRL-2 (1 year): Expanded trials on up to 2.5 acres.
  • GEAC Clearance: Post-trial approval needed from the Genetic Engineering Appraisal Committee (GEAC).
  • State Government Approval: Necessary for field trial permissions.

Efforts to increase Cotton Production

  • Development of New GM Hybrids: Indian seed companies are developing hybrids using new Bt genes to combat PBW resistance. These include testing cry8Ea1 gene hybrids (Bioseed Research India); synthetic cry1c gene; chimeric Bt protein etc. However, the challenges include:
    • Bureaucratic delays in regulatory clearances.
    • Opposition from environmental groups.
    • No GM crop commercialised since 2006 in India (after Monsanto’s Bollgard-2 Bt cotton).
  • Government Mission for Cotton Productivity: The 2025-26 Union Budget has announced an ambitious Rs 500 crore five-year plan to boost cotton production, promote extra-long staple cotton varieties, and promote scientific and technological support for cotton farmers. 

Pink Ballworm has created an emergency-like situation in India’s cotton sector. The Central Government needs to adopt a more proactive approach with regard to new GM crop development and extending policy support. 

Fram2 Mission

Context: Fram2 mission, a private space mission led by a cryptocurrency billionaire, has returned after completing a journey of three and a half days.

Relevance of the Topic: Prelims: Key facts about Mission Fram2. 

Overview of Fram2 Mission

SPACEX FRAME2 MISSION
  • Name: Fram2 (named after the 20th-century Norwegian South Pole exploration ship "Fram")
  • Type: Private mission launched by SpaceX
  • Launch Vehicle: Falcon 9 rocket
  • Spacecraft: SpaceX Dragon capsule.
  • Launch Site: NASA’s Kennedy Space Center, Cape Canaveral, Florida.
  • Launch Date: March 31, 2025
  • Funded by: Chun Wang, a cryptocurrency entrepreneur from Malta
  • Duration of mission: 3.5 days 
  • Crew Members: Chun Wang (Malta) – Cryptocurrency entrepreneur and his three guests.

Key facts about Fram2 Mission: 

  • First human mission to fly in polar orbit (over both the North and South Poles)
  • First SpaceX human crew to return via Pacific Ocean splashdown. 

Scientific Objectives:

The crew conducted 22 microgravity experiments before safely returning to Earth. They include- 

  • First X-ray of the human body in orbit.
  • Studying radiation exposure in polar orbits.
  • Testing advanced space communication via the Starlink network.
  • Conducting biomedical research on the human body’s adaptation to polar orbital conditions.
  • Growing mushrooms in space—a first in space agriculture.

Polar Orbit Significance

  • A polar orbit is where a spacecraft orbits Earth by passing over the North and South Poles. Instead of moving around the equator like many satellites, it travels from top to bottom (north to south) and then back up.
  • Common for satellites, but unprecedented for humans.
  • Requires higher energy and modifications due to the flight path over less populated regions.
  • Software modifications made to ensure emergency safety during southward launch.