Prelims Nuggets

Offshore Area Atomic Minerals Concession Rules 2025

Context: The Ministry of Mines, in coordination with the Department of Atomic Energy (DAE), have notified the Offshore Area Atomic Minerals Concession Rules, 2025. The new rules seek to regulate offshore atomic mineral mining for energy security and strategic control.

Relevance of the Topic: Prelims: About Offshore Area Atomic Minerals Concession Rules, 2025. 

Offshore Area Atomic Minerals Concession Rules 2025

  • Purpose: To regulate the award of exploration licences and production leases for atomic minerals such as Uranium, Thorium, and other radioactive elements in the country’s offshore areas, including its territorial waters and exclusive economic zones (EEZs)
  • Nodal Authority: The DAE and the Atomic Energy Regulatory Board will serve as the nodal oversight agencies, ensuring compliance with radiological safety and strategic protocols.

Key Highlights: Offshore Area Atomic Minerals Concession Rules 2025

  • Only Central Government Agencies, State-owned enterprises, or government-nominated companies can be awarded composite licences or mining leases.
  • Foreign firms barred from exploration activities unless subcontracted under highly-restrictive guidelines, and only with prior security clearance from Ministries, including Defence, Home and Environment.
  • Exploration will be allowed without a licence, but only for notified government agencies.
  • Any later discovery of Atomic Minerals above threshold grades, as defined in alignment with the Atomic Mineral Concession Rules, 2016, must be reported to the Directorate of Atomic Minerals Exploration and Research. Upon reporting a significant discovery, the government may immediately reserve the block for National use.
  • The government reserves the right to revoke or deny licences if discoveries are deemed strategically sensitive or exceed the threshold grade. The Central Government can directly acquire such sites if needed for strategic reasons.
  • Explorers may be compensated only for actual expenses incurred, discouraging speculative private activity.
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Stem Cell Therapy ‘ ZIMISLECEL’ shows promise in Type-1 Diabetes

Context: ZIMISLECEL, a new allogeneic stem cell-derived islet cell therapy, has shown promise in a recent study involving people with Type-1 Diabetes. 

Relevance of the Topic: Prelims: ZIMISLECEL; Type-1 DiabetesMains: Potential use cases of Stem Cell Therapy. 

About Diabetes

  • Diabetes is a lifelong condition that causes a person's blood glucose (sugar) level to become too high. The hormone insulin (produced by the pancreas) is responsible for controlling the amount of glucose in the blood.
  • Type-1 Diabetes (insulin-dependent) is an autoimmune condition in which the body’s immune system mistakenly destroys insulin-making cells (islets cells) in the pancreas. It is characterised by deficient insulin production, and the person requires daily administration of insulin. For decades, managing T-1D has relied on insulin therapy alone. 

 ZIMISLECEL: Stem Cell-derived Islet Cell Therapy

  • Zimislecel is an investigational stem cell-derived islet therapy for Type-1 Diabetes.
  • Scientists made Zimislecel by growing islets from pluripotent stem cells in the lab. These stem cells were matured into functioning islets and infused into the liver in the patients with severe, long-standing Type-1 Diabetes. 
  • Early trials show that these stem cell-derived islet cells began producing insulin again, improving blood sugar control and preventing dangerous lows. 
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Results of the Trials:

  • The early-stage trial aimed to assess the safety and efficacy of Zimislecel in restoring islet function in affected individuals.
    • Within 90 days, all participants were producing C-peptide, a marker of insulin production, with levels more than doubling by day 365. 
    • Blood sugar control improved and 83% of participants treated no longer required insulin after one year.
    • To prevent their bodies from rejecting the transplanted cells, they were placed on an immunosuppressive regimen
  • Phase 3 trials of Zimislecel are underway with 50 participants from around the world and will be followed for five years.

The therapy is still underdevelopment and may have cost considerations and the side-effects related to life-long immunosuppression.

What are Stem Cells?

  • Stem cells are undifferentiated cells with the potential to develop into specialised cell types in the body. They can self-renew which makes them valuable for therapeutic applications. 
  • Stem cell therapy utilises stem cells to promote the repair, regeneration, or replacement of damaged or diseased tissues within the body.
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Types of Stem Cells:

  • Totipotent: Most versatile, with potential to differentiate into all different cell types of an organism and extraembryonic cells (including placenta and umbilical cord). Only found in fertilised eggs (zygote).
  • Pluripotent: Derived from inner cell mass of a blastocyst (an early-stage embryo). Can give rise to all different cell types in the body (except extraembryonic cells). E.g., Embryonic stem cells and induced pluripotent stem cells (genetically reprogrammed to the pluripotent state from adult cells). 
  • Multipotent: More specialised than pluripotent stem cells and can differentiate into limited range of cell types within a specific tissue or organ. E.g., Hematopoietic stem cells (give rise to various blood cell types), mesenchymal stem cells (can differentiate into bone, cartilage, fat cell etc.) 

Unipotent: Most specialised type of stem cells, can only renew themselves and differentiate into one specific cell type. E.g., Stem cells in skin that can only differentiate into another skin cell.

Also Read: HC permits Stem Cell Therapy for two kids with autism 

African Kingdom of Eswatini

Context: The United States has deported few foreign nationals convicted of serious crimes to Eswatini, a small southern African kingdom ruled by Africa’s last absolute monarch.

Relevance of the Topic:Prelims: Location of Kingdom of Eswatini. 

African Kingdom of Eswatini

  • Eswatini, formally Swaziland, is a landlocked country in Southern Africa. It is situated between South Africa and Mozambique.
  • It is one of the world's last remaining absolute monarchies and the last in Africa. King Mswati III, who has ruled since 1986, holds full control of government functions and rules by decree. 
  • Political parties are banned from participating in the electoral process. Protests calling for democratic reforms have grown. The government has been widely accused of using security forces to suppress dissent. 
  • Social Issues: Over half of its 1.2 million population lives on less than $4 a day. The country has the world’s highest HIV prevalence rate, with roughly 26% of adults living with the virus.
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US deportation of Foreign Nationals

  • The deportation to Eswatini is part of a wider US strategy to expand third-country deportations. Earlier, the US had sent deportees to South Sudan. Other nations reportedly approached for similar deals include- Rwanda, Benin, Angola, Equatorial Guinea, and Moldova. 
  • The deportees are flown to the the-world countries, as their home countries refuse to take them back. The convicts are held in isolation at correctional facilities, while arrangements are made for their eventual return to their countries of origin.
  • Rationale: The deportations are part of a wider effort by the US administration to ensure that people who terrorised American communities are removed. 

ASTRA: Beyond Visual Range Air to Air Missile

Context: Recently, Defence Research and Development Organisation (DRDO) and the Indian Air Force (IAF) carried out a successful flight test of the Beyond-Visual-Range Air-to-Air missile (BVRAAM) Astra missile from Su-30 Mk-I platform off the coast of Odisha.

Relevance of the Topic: Prelims: Key facts about Astra Missiles. 

About Astra Missile

  • Astra is a Beyond-Visual-Range Air-to-Air missile (BVRAAM) with a range exceeding 100 kms.
  • Developed by: Defence Research and Development Organisation (DRDO) 
  • It is equipped with an art guidance and navigation system and indigenous Radio Frequency (RF) Seeker that provides it the ability to strike with high accuracy.
    • One of the key technological achievements of the recent test was the validation of the Radio Frequency (RF) seeker. 
    • RF seeker detects and tracks the target using radio waves ensuring accurate terminal guidance. 
  • The missile (Astra Mk1) has already been inducted into service with the IAF. It is integrated in Su-30 Mk-I fighter aircraft; integration is underway in Tejas Mk1A fighter, and will be integrated in future in AMCA, Rafale etc. 
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Variants of Astra Missile

1. Astra Mk1: 

  • First-ever BVRAAM indigenously developed by India. 
  • Astra Mk-1 is 3.6 m long, and weighs 154 kg. 
  • Uses a single-pulse rocket motor with solid propellant that can propel the missile to a speed of Mach 4.5. 
  • It uses mid-course inertial guidance driven by a fibre-optic gyroscope. 
  • The maximum range is 110 km in head-on chase and 20 km in tail chase. 
  • The missile could be launched from different altitudes.

2. Astra Mk2: 

  • It has a projected range of 140-160 km. Astra Mk-2 uses a dual-pulse rocket motor which dramatically increases its range and kill probability. 
  • It incorporates upgraded guidance algorithms and an indigenous radio frequency (RF) seeker.
  • The missile is slated to achieve operational readiness by 2026.

3. Astra Mk3 (Gandiva missile): 

  • India and Russia are working together to build the future Astra Mk-3 missile powered by a solid fuel ducted ramjet (SFDR) engine.  
  • Projected Range: 350 kms. This would put the Astra Mk3 in the same league as the world’s most advanced air-to-air missiles.

Successful Trials

  • The test launches were carried out against high-speed unmanned aerial targets at different ranges, target aspects and launch platform conditions. The missiles destroyed the targets with pinpoint accuracy. 

Significance of the Test

  • Validates critical defence technology: Traditionally, India relied on imported RF seekers, which incurred high costs and also exposed supply chains to geopolitical uncertainties. The test validates the indigenous RF seeker which is a critical defence technology. 
  • Reinforces reliance on Astra missiles: Re-establishes the accuracy and reliable performance of Astra weapon system. It reinforces India’s growing technological edge in aerial warfare systems. 

India’s successful test of the Astra missile with an indigenous RF seeker places it along the list of a few nations, like the US, Russia, France, and China, with advanced BVRAAM programs developed entirely within national borders. 

Akash Prime Air Defence System

Context: Indian Army has carried out successful trials of the indigenously developed Akash Prime Air Defence System at an altitude of over 15,000 feet in the Ladakh sector. The test was successful and the missile has met the country’s critical air defence requirements for high-altitude.

Relevance of the Topic:Prelims: Key facts about Akash Prime Air Defence System; Akash Missile Defence System.

Akash Missile Defence System

  • Indigenously developed by: Defence Research and Development Organisation (DRDO)
  • Medium-range Mobile Surface-to-Air missile (SAM) designed to neutralise aerial threats such as fighter jets, drones, cruise missiles, and air-to-surface missiles.
  • Operates on a command-guidance system with datalink for mid-course corrections and switches to active radar homing in the terminal phase.
  • Propelled by an integrated ramjet-rocket engine allowing it to maintain supersonic speeds (Mach 1.8 to 2.5) throughout its flight.
  • Range extends up to 25-45 km, with the ability to intercept targets at altitudes up to 20 km.
  • The missile carries a 60 kg high-explosive, pre-fragmented warhead, detonated by a digital proximity fuse for maximum impact.
  • Supported by a sophisticated radar network. Real time multi-sensor data processing enables simultaneous engagement of multiple targets from any direction.
    • Rajendra Phased Array Radar can track up to 64 targets and guide eight missiles simultaneously.
    • 3D Central Acquisition Radar (3D CAR) provides long-range surveillance and target acquisition.

Akash has evolved over the years, with variants like Akash-1 (25 km range), Akash-NG (up to 30 km with improved guidance), and Akash Prime (up to 35 km). 

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Akash Prime Air Defence System

  • The system can operate at heights up to 4500 metres and is capable of targeting objects at a range of around 25 to 30 kilometres.
  • Compared to the existing Akash system, Akash Prime includes an indigenous active Radio Frequency (RF) seeker for improved target accuracy. The RF seeker enables the missiles to detect, track, and home in on targets with greater precision in extreme weather and terrain.
  • The modification allows its reliable use in cold temperatures and high-altitude conditions. 

Akash’s integration with advanced command-and-control systems like Integrated Air Command and Control System (IACCS) enables real-time threat neutralisation. The upgraded variant (Akash Prime) will enhance the Air Defence potential in high-altitude frontiers and improve the operational effectiveness.

Cabinet approves PM Dhan-Dhaanya Krishi Yojana 

Context: The Union Cabinet has approved the Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY) for a six-year period starting 2025-26, with an annual outlay of Rs 24,000 crore.

Relevance of the Topic: Prelims: Key features of PM Dhan-Dhaanya Krishi Yojana (PMDDKY).Mains: Significance of PM Dhan-Dhaanya Krishi Yojana.

PM Dhan-Dhaanya Krishi Yojana: 

  • PM Dhan-Dhaanya Krishi Yojana (PMDDKY) was announced in the Union Budget for 2025-26. 
  • The scheme draws from the Aspirational District Programme framework and is the first of its kind focused exclusively on agriculture and allied sectors. It aims to enhance productivity and sustainability in 100 backward agri-districts.

Objective of the Scheme:

The scheme aims to: 

  • Enhance agricultural productivity.
  • Increase adoption of crop diversification and sustainable agricultural practices.
  • Augment post-harvest storage at the panchayat and block levels.
  • Improve irrigation facilities.
  • Facilitate availability of long-term and short-term credit.

Key Features: 

  • It is a first-of-its-kind scheme that would focus exclusively on agriculture and allied sectors.
  • Duration: 6 years beginning from 2025-26.
  • Outlay: ₹24,000 crore per year.
  • The scheme is modelled on the Aspirational District Programme of the Centre.

Implementation of the Scheme

  • The scheme will be implemented through convergence of 36 existing schemes across 11 departments, other State schemes and local partnerships with the private sector.
  • 100 districts will be identified based on three key indicators: low productivity, low cropping intensity, and less credit disbursement.
  • The number of districts in each State/ Union Territory will be based on: the share of net cropped area and operational holdings. However, a minimum of one district will be selected from each state.
  • Committees will be formed at the district, state and national levels for effective planning, implementation and monitoring  of the scheme. Central nodal officers will be appointed for field visits, review and monitoring.
  • Dhan-Dhaanya Districts will be ranked based on their performance. A portal/ dashboard will be developed to monitor the progress of the scheme in each district on 117 key performance indicators on a monthly basis. 
  • District Agriculture and Allied Activities Plan will be finalised by the District Dhan Dhaanya Samiti, which will be headed by the District Collector and include progressive farmers as members.The district plans will be aligned to the National Goals of crop diversification, conservation of water and soil health, self-sufficiency in agriculture and allied sectors as well as expansion of natural and organic farming.
  • In addition, Central and State agriculture universities will be assigned each district as technical knowledge partners.

Significance 

The government hopes that the scheme will result in : 

  • Higher  productivity.
  • Value addition in agriculture and allied sectors.
  • Local livelihood creation while increasing domestic production and achieving self-reliance. 
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India’s first Tribal Genome Sequencing Project

Context: Gujarat has become the first state to launch a genome sequencing initiative focused exclusively on tribal communities.

Relevance of the Topic: Prelims: Key facts about Genome, Genome Sequencing and its applications, Genome India Project; Tribal Genome Sequencing Project. 

Tribal Genome Sequencing Project

  • The project- Creation of Reference Genome Database for Tribal Population in Gujarat- is being implemented by the Gujarat Biotechnology Research Centre.
  • Aim: To identify genetic health risks and improve access to personalised healthcare solutions for tribal populations.
  • The initiative will sequence the genomes of 2000 individuals from tribal communities in 17 districts in the State.

Significance: 

  • Tribal populations in India face a disproportionate burden of genetic disorders like- sickle cell anaemia, thalassemia, glucose-6-phosphate dehydrogenase (G6PD) deficiency, certain forms of cancer etc. There is a longstanding gap in genomic data for India's tribal populations. The genetic database could lead to the early detection and better treatment of the inherited diseases. 

What is Genome Sequencing?

  • A genome is an organism’s complete set of DNA. It is a collection of all the genes and the regions between the genes contained in our 23 pairs of chromosomes.
    • Each chromosome is a contiguous stretch of DNA string composed of millions of individual building blocks called nucleotides or bases [adenine (A), cytosine (C), guanine (G), and thymine (T)]. 
    • These bases (A, T, G and C) are arranged and repeated millions of times in different combinations.
  • Whole-genome sequencing is the decoding of the entire DNA present in the human cell, i.e., determining the precise order of the four nucleotide bases in DNA. 
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Applications of Genome Sequencing: 

  • Disease Diagnosis: Identify genetic mutations and variations, evaluate rare disorders and even cancer from a genetic viewpoint.
    • E.g., Nearly 10,000 diseases (including cystic fibrosis and thalassemia) are the result of a single gene malfunctioning.
    • Mutation in MYBPC3 (Cardiac Myosin binding protein) leads to cardiac arrest at young age (found in 4.5% of Indian population but is rare globally). 
  • Personalised Drug Development: Can identify genetic targets for drug development and testing, leading to the development of more effective and personalised drugs. 
  • Prenatal Screening: Can be used as a tool for prenatal screening to investigate whether the foetus has genetic disorders/anomalies.
  • Forensics: Genome sequencing can be used to identify suspects in criminal investigations and to establish paternity in cases of disputed parentage.
  • Evolutionary Biology: Can help trace the evolutionary history of species and understand the mechanisms underlying evolution. 
  • Agriculture: Can help identify genes that contribute to desirable traits in plants and animals, allowing for the selective breeding of crops and livestock.

Also Read: Genome Sequencing and the Genome India Project 

Climate Change is fuelling Wildfires in Europe

Context: Wildfires are raging in several Mediterranean countries, including Spain and France, after the increased heat waves incidents in Europe.  

Relevance of the Topic: Prelims: Climate change: Key trends; Mediterranean Type of Climate. 

Wildfires in Europe: Key Trends

  • Wildfires have burnt over 2.2 lakh hectares of land since January 2025 in Europe. This is more than double the average for this time of year over the past two decades.
  • The number of wildfire incidents have also surged. This has forced thousands of people to evacuate their homes.

Factors favorable for Wildfires:

  • Hot summer and strong winds: The Mediterranean region's hotter, drier summers put it at high risk of wildfires. Once fires start, plentiful dry vegetation and strong winds in the region can cause them to spread rapidly and burn out of control.
  • Climate change: As per the World Meteorological Organisation (WMO), Europe has warmed at twice the global average since the 1980s. That warmer baseline means higher temperatures can be reached during heatwaves, which exacerbates the risk of wildfires.  
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Europe’s New Climate Reality: 

Greenhouse gas emissions, mainly from burning coal, oil and gas, have heated the planet by about 1.3 degrees Celsius since pre-industrial times. 

  • Europe is the fastest-warming continent as it is witnessing an average temperature rise of around 0.5 degrees Celsius per decade compared to 0.2 degrees Celsius globally. The continent is experiencing an increase in the frequency of heatwaves in recent years.

Reasons Include: 

  • Europe’s proximity to the Arctic region- which is by far the fastest-warming part of Earth. As a result, the Arctic region contributes to the soaring temperatures in Europe, making it more vulnerable to heatwaves.
  • Feedback systems: In continental regions like Europe, rising temperatures increase evapotranspiration, causing rapid dried-out soil moisture. This leads to positive feedback- Dried-out soils send more sensible heat back into the atmosphere, which warms up and further aggravates aridity. 
  • Changes in the behaviour of jet streams (rapid currents encircling the Earth from west to east at high altitudes). Recent studies show that Europe is increasingly becoming vulnerable to a phenomenon called double jet stream. This occurs when the main jet stream temporarily splits in two branches. This results in an area of weak winds and high-pressure air between the two branches that causes extreme heat. Double jet streams become more common when land mass heats up in early summer.

Mediterranean Type of Climate:

  • A Mediterranean climate, or dry summer climate is a major climate type described by Köppen classification.
  • The temperate climate occurs in the lower mid-latitudes (normally 30° and 45° latitude North and South of the Equator)
  • Such climates typically have hot, dry summers and cool, wet winters, with summer conditions being hot and winter conditions typically being mild (winter rain climate). 
  • Mediterranean vegetation: Trees with hard, waxy leaves to reduce water loss; Evergreen shrubs, bushes etc. 
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Also Read: Forest Fire Incidents in India 

Animal Birth Control Rules 2023

Context: While hearing a plea by a Noida resident harassed for feeding stray dogs in common areas, the Supreme Court observed that citizens who wished to feed stray dogs should consider doing so inside their own homes. 

The case highlights the relevance of the Animal Birth Control Rules 2023, which aims to regulate feeding practices while balancing animal welfare and public safety.

Relevance of the Topic: Prelims: Animal Birth Control Rules, 2023, Prevention of Cruelty to Animals Act, 1960, Fundamental Duties (Article 51A(g)), Article 21.Mains: GS-IV Ethical Dilemma: Compassion vs Public order 

Animal Birth Control Rules 2023

  • Animal Birth Control Rules 2023 (ABC Rules) were notified under The Prevention of Cruelty to Animals Act, 1960.
  • The Rules seek to control stray dog populations through sterilisation, and to curb the spread of rabies by vaccinating them. 
  • The Rules lay down protocols to ensure that the feeding of dogs respects both animal welfare and public safety.
  • The Rules replaced the Animal Birth Control (Dog) Rules, 2001.
  • These Rules use the expression “community animals” instead of “stray dogs”- recognising that these dogs are not ownerless intruders but territorial beings that inhabit and belong to their local environments.

Rule 20 of the ABC Rules 2023: Feeding of Community Animals

  • If a resident feeds street animals, the Resident Welfare Association (RWA), Apartment Owners’ Association, or local body’s representative must arrange designated feeding spots.
  • Feeding spots must be away from public entry points, stairs, or play areas.
  • The designated spaces must be kept clean and litter-free, and community dogs should be fed at an appointed time.
  • The Rule also lays down a dispute resolution mechanism involving the Chief Veterinary Officer, Representatives of the Police, the District Society for Prevention of Cruelty to Animals, Organisations conducting Animal Birth Control, and the RWA.

Constitutional Provisions:  

  • Article 51A(g) places a fundamental duty on citizens to have compassion for living creatures. 

Important Court Judgments

  • In Jallikattu Case 2014 (Animal Welfare Board of India vs A. Nagaraja): The Supreme court ruled that animal life falls within the meaning of Article 21 of the Constitution. The SC noted that all living creatures (including animals) have inherent dignity, right to live peacefully and the right to protect their well-being. 
  • Bombay High Court in Sharmila Sankar v. Union of India (2023) ruled in favour of residents who had faced opposition from their housing societies for feeding dogs. The court affirmed that the ABC Rules have the force of law. RWAs and societies cannot restrict the feeding of community animals or threaten or penalise individuals who do so. 

The presence of dogs in residential areas cannot automatically be considered unlawful. Nor can those who feed them be considered offenders unless their actions violate specific behavioural and spatial guidelines set by the law.

Why is Corporate Investment lagging behind?

Context: According to data released by the Ministry of Statistics and Programme Implementation (MoSPI), India’s Index of Industrial Production (IIP) growth fell to 1.2% in May 2025, the lowest in nine months.

Despite various government steps like tax cuts, infrastructure spending (capex), and low interest rates, private sector investment is not picking up and lagging behind.

Relevance of the Topic: Prelims: Trends & factors associated with Low corporate investment. 

State of Corporate Investment in India

The 2024-25 Economic Survey expressed concern, noting that: 

  • The corporate sector is enjoying record-high financial performance. However, there has been negligible growth in hiring and employee compensation.
  • Private-sector Gross Fixed Capital Formation (GFCF) in machinery, equipment, and intellectual property has grown only 35% cumulatively over four years- indicating weak investment momentum.

Why is Corporate Investment Lagging Behind ?

  • Low Consumer Demand: After COVID-19, overall demand in the economy is weak. When people are not buying enough, companies see no reason to invest in expanding production.
  • Underutilisation of Existing Capacity: Firms are hesitant to invest when their existing facilities are not being used to full capacity, fearing low returns from added production.
  • Slow Export Demand: The global economic slowdown, combined with rising trade protectionism and tariff regimes (such as the reciprocal tariff measures by the US), has weakened external demand for Indian goods. This uncertain global environment discourages firms from undertaking export-oriented investments.
  • Delay in Impact of Government Capex Projects: Projects like ports and highways have long gestation periods, the time lag between investment and tangible economic returns delays their crowd-in effect on private investment. So, their benefits do not immediately encourage private investment.
  • High Import Content in Capex: A part of the government's capital expenditure goes into imported machinery and technology. This does not help Indian industries and reduces the positive impact on local demand.
  • Low Labour Intensity of Projects: Many infrastructure projects use heavy machines instead of workers. This means fewer jobs are created, so income and consumption do not rise much.
  • Low interest rates are not enough: Even if loans are cheap, companies would not borrow unless they believe they can sell their products and make profits.
  • Weak Link profits and investment: The assumption that higher profits will automatically lead to greater private investment is flawed. As per renowned economist Kalecki, firms can choose to invest but cannot ensure profits. In a weak demand environment, profitability alone does not incentivise capacity expansion. 

Thus, tax cuts or higher earnings do not translate into investment unless backed by strong demand prospects.

Way Forward

  • Increase government expenditure to act as an external stimulus for reviving investment.
  • Focus on reviving demand, as investment will follow recovery, not lead it.
  • Prioritise high-multiplier and short-gestation projects to generate quicker economic impact.
  • Minimise import content in capex to ensure maximum domestic demand generation.
  • Promote labour-intensive investments to boost employment and consumption.
  • Recognise that low interest rates alone cannot drive investment without demand.
  • Restore both credit flow and business confidence, as both are necessary for recovery.

The slowdown in corporate investment in India is mainly due to weak demand and delays in the impact of government spending, not because companies lack profits or funds.

QR code-based Aadhaar Verification App

Context: UIDAI is set to launch a QR code-based App to enable Aadhaar updates from home with enhanced verification and data control.

Relevance of the Topic: Prelims: Key Features of QR code-based Aadhaar App. 

Key Features of the New App

  • The QR based app will allow individuals to update their Aadhaar details from their homes. 
  • Except for biometric updates like fingerprints or iris scans, most changes, including name, address, and mobile number will soon be possible online, using the App equipped with advanced verification protocols.
  • Authenticated government databases such as PAN, passport, driving licence, and PDS and MNREGA registries will be used to cross-verify user-submitted information. 
  • The App enables secure QR code-based Aadhaar sharing offering users control over when and how their data is shared. E.g., while checking in at a hotel, the customers can share a full or masked version of their e-Aadhaar through secure, mobile-to-mobile channels, only with explicit consent.
  • The proposed App is expected to go live by the end of 2025. 

Why is the QR-based Aadhaar App introduced ?

The QR-based Aadhaar app has been introduced to solve the following existing challenges in the Aadhaar update and usage ecosystem. 

  • Digital Exclusion of Vulnerable Groups: 1 in 3 users struggled to update Aadhaar, and 20% failed to do so. 30% of homeless people and 27% of third-gender individuals lacked Aadhaar. Barriers include lack of documentation and gender misclassification, leading to denial of services and exclusion from welfare schemes.
  • Privacy and Consent Risks: Centralised linking of Aadhaar to multiple services raises data misuse and surveillance concerns.
  • Low Awareness and Low Digital Literacy: Aadhaar’s digital features continue to be underutilised. Many users, particularly in rural areas, rely on physical photocopies rather than e-Aadhaar.

Significance of QR-based Aadhaar App: 

  • Empowers users to control their identity, dictate access, and minimise data exposure.
  • Can reduce paperwork and also help prevent the use of forged documents.

The government is also strengthening regulations on privacy, consent, and the responsible use of Aadhaar-linked personal data by amending the Aadhaar Act to align it with the Digital Personal Data Protection (DPDP) Act 2023 with the aim to:  

  • Provide users greater control over their data by emphasising data minimisation.
  • Provide the right to erasure - Users can request deletion of Aadhaar-linked data.
  • Prevent Aadhaar data reuse beyond the original purpose without fresh consent. 

Assessing India’s Carbon Credit Trading Scheme Targets

Context: The Indian government recently notified greenhouse gas (GHG) emissions intensity targets for entities across key industrial sectors under the Carbon Credit Trading Scheme (CCTS).

Relevance of the Topic: Prelims: Key facts about India’s Carbon Credit Trading Scheme. 

What is the Carbon Credit Trading Scheme (CCTS) ? 

  • Launched in 2023 under the Energy Conservation (Amendment) Act 2022. 
  • It is a market based mechanism designed to reduce greenhouse gas emissions by pricing carbon and facilitating trading of carbon credits. 
  • CCTS introduces carbon pricing through two key mechanisms to ensure comprehensive carbon reduction efforts.
    • Compliance Mechanism: Mandates energy-intensive industries to meet sector-specific GHG reduction targets. Entities that emit below their set intensity targets earn Carbon Credit Certificates (CCC); while those exceeding targets must purchase credits or face penalties. 
    • Offset Mechanism: Allows voluntary participation from entities outside the compliance framework to earn carbon credits by reducing emissions. 
  • As of now, 8 heavy industrial sectors are included under the compliance mechanism of CCTS: Aluminium, Cement, Paper and Pulp, Chlor-Alkali, Iron and Steel, Textiles, Petrochemicals, Petroleum Refineries. 
  • Administered by: multiple bodies like the Bureau of Energy Efficiency (BEE) and the National Steering committee for the Indian carbon market.  
  • Trading of Carbon Credit is expected to begin by October 2026. 
  • The CCTS aims to help India achieve its Nationally Determined Contribution (NDC) target of reducing the emissions intensity of its GDP by 45% by 2030 from 2005 levels. 
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Assessment of India’s Carbon Credit Trading Scheme: 

Lack of Ambitious Targets: 

  • India’s overall energy emissions intensity is projected to decline by 3.44% per year from 2025 to 2030. The manufacturing sector should ideally reduce its emissions intensity by 2.53% per year.
  • But current CCTS targets for industries show only a 1.68% per year drop. This suggests the CCTS targets are not ambitious enough to achieve India's NDC targets and decarbonisation goals. 

Limited Sectoral Coverage:  

  • CCTS currently covers only 8 of the 9 heavy industrial sectors.
  • Several major emitters are excluded like- thermal power plants, transport, agriculture, and MSMEs, limiting the scope and impact of the scheme.

Sectoral vs. Economy-Wide Focus

  • The scheme largely focuses on sectoral/entity-specific targets rather than an integrated, economy-wide reduction strategy. This narrow focus on select industrial players may risk  intra-sector credit trading without meaningful reduction in national-level emissions. 

A robust carbon market should drive aggregate decarbonisation with participation of major sectors, and not just trading between a few large players.