General Studies Paper -2

Context: India’s quest for a grand strategy in foreign policy is a complex and evolving journey, reflecting its aspirations to become a leading global power.

Historical Context and Strategic Wisdom

• For centuries, thinkers like Chanakya, Sun Tzu, and Clausewitz have influenced strategic thought with their writings on war and diplomacy.
• In the modern context, these ancient principles are being reinterpreted to address contemporary geopolitical challenges.
• India’s foreign policy is a reflection of its sovereignty and national interests. It is designed to safeguard and promote India’s interests in the global arena.

Evolution of India’s Foreign Policy

• Early Years: Non-Alignment and Cold War Dynamics The Non-Aligned Movement (NAM), co-founded by India, aimed to maintain sovereignty and avoid entanglement in the ideological conflicts between the US and the Soviet Union.
  • It became a cornerstone of its foreign policy, emphasizing peaceful coexistence, anti-colonialism, and mutual respect among nations.
• Post-Cold War Adjustments: India faced economic challenges and initiated liberalization reforms under Prime Minister P.V. Narasimha Rao.
  • It saw a shift towards pragmatic diplomacy, focusing on economic growth and integration into the global economy.
  • Relations with the US improved, and India began to engage more actively with regional and global institutions.
• Strategic Partnerships and Regional Focus: The late 1990s and early 2000s witnessed the emergence of strategic partnerships.
  • In 1998, India conducted nuclear tests in 1998, asserting its strategic autonomy.
  • Despite initial international sanctions, India managed to secure a landmark civil nuclear agreement with the US in 2008 which marked a significant milestone in bilateral relations.
• Contemporary Era: Multi-Alignment and Global Ambitions: It seeks to build strong bilateral relationships with major powers while maintaining strategic autonomy.
  • India’s foreign policy also addresses global challenges such as climate change, terrorism, and cybersecurity.

Key Pillars: India’s Strategy For Foreign Policy

• Bilateral Over Multilateral Approaches: India is advised to prioritize bilateral relationships over multilateral frameworks.
  • It allows for more tailored and effective partnerships, crucial for advancing India’s strategic interests.
  • India’s immediate neighborhood remains a priority. Strengthening ties with South Asian countries through initiatives like SAARC and BIMSTEC and engagements with ASEAN, the Look East Policy (later Act East Policy) can foster regional stability and economic integration.
• Strategic Autonomy: Maintaining strategic autonomy is central to India’s foreign policy.
  • It enables India to act as a counterbalance to Chinese dominance in the region, particularly in the Indo-Pacific.
• Balancing Major Power Relations: Managing relations with major powers such as the United States, China, and Russia is crucial.
  • India must continue its strategic partnerships with the U.S. while maintaining a balanced approach towards China and Russia. It includes engaging in dialogues, participating in multilateral forums, and leveraging its strategic autonomy.
• Deterrence Against Chinese Hegemony: Strengthening partnerships with countries like Japan, Australia, the U.S., and France is essential for countering China’s growing influence.
  • These nations support India’s strategic independence and share common interests in regional stability.
• Multilateral Engagement: Active participation in multilateral organizations such as the United Nations, World Trade Organization, and BRICS can amplify India’s voice on global issues.
  • Advocating for reforms in these institutions to reflect contemporary realities can also be a strategic priority.
• Diaspora Engagement: The Indian diaspora, spread across the globe, can act as ambassadors of India’s interests and contribute to its economic and cultural outreach.

Other Key Strategies for India’s Foreign Policy for the Future

• Economic Diplomacy: With the goal of becoming a developed nation by 2047, India is leveraging its economic growth to enhance its international profile.
  • It includes initiatives like promoting trade, attracting foreign investment, and participating in global economic forums like the G20 can boost India’s economic growth.
• Technological and Digital Diplomacy: Collaborating on cybersecurity, artificial intelligence, and digital infrastructure with global partners can enhance India’s technological capabilities and secure its digital borders.
• Climate Change and Sustainable Development: Active participation in international climate agreements and initiatives like the Paris Agreement can enhance India’s global image as a responsible power.
  • Additionally, leveraging initiatives like the International Solar Alliance (ISA) can position India as a leader in sustainable development.
• Cultural and Soft Power Diplomacy: Leveraging India’s rich cultural heritage and soft power can enhance its global influence.
  • Promoting cultural exchanges, educational collaborations, and tourism can build positive perceptions and strengthen diplomatic ties.
• Humanitarian and Development Assistance: Providing humanitarian aid and development assistance to countries in need can enhance India’s global standing.
  • It includes disaster relief, healthcare support, and capacity-building initiatives.

Challenges and Complexities

• Strategic Autonomy vs. Alliances Building: India aims to maintain its strategic autonomy while building strong bilateral relationships.
  • This balancing act is crucial as India seeks to counter Chinese influence while managing its ties with the U.S., Russia, and other major powers.
• Regional Dynamics: India’s relationships with its South Asian neighbours remain complex and are not always aligned with its global ambitions.
  • Challenges like recent political changes in Bangladesh, Myanmar, Maldives and ongoing tensions with China.
  • India’s efforts to rebuild trust with China and manage its relations with Pakistan and other South Asian countries are critical.
• Security Concerns: Addressing security challenges, including cybersecurity threats and maritime security, is a priority.
  • India’s defense cooperation with key partners and its role in regional security frameworks are crucial aspects of its foreign policy.
• S. Relations: While the U.S. is a key partner, its expectations for allies to take sides in conflicts can challenge India’s independent stance.
• Russia’s Role: Russia’s efforts to bring India and China closer complicate India’s desire for balanced relations with both nations.

Conclusion

• Formulating a grand strategy for India’s foreign policy in the 21st century involves navigating a complex landscape of historical wisdom, strategic autonomy, and evolving geopolitical dynamics.
• By prioritizing bilateral relationships, maintaining strategic independence, and countering regional hegemony, India can chart a path towards becoming a leading global power.

General Studies Paper -3

Context: The Union Shipping Ministry has proposed a major expansion of the ₹72,000 crore mega-infrastructure project on Great Nicobar Island.

The Great Nicobar project

• Implementing authority: The project is being implemented by the Port Blair-based Andaman and Nicobar Islands Integrated Development Corporation Ltd (ANIIDCO).
• The Project involves developing an International Container Transshipment Terminal (ICTT), an international airport, township development, and a 450 MVA gas and solar-based power plant on the island.
  • The site for the ICTT and power plant is Galathea Bay on the southeastern corner of Great Nicobar Island, where there is no human habitation.

Significance of the Project

• Economic Growth: The International Container Transshipment Terminal (ICTT) will position Great Nicobar as a key hub in global maritime trade, boosting regional economic growth.
• Strategic Importance: The project enhances India’s maritime capabilities and reduces dependence on foreign ports for cargo transshipment.
• Sustainability: The 450 MVA gas and solar-based power plant will provide renewable energy, reducing reliance on fossil fuels.

What are the new additions?

• The project includes an international cruise terminal and high-end tourism infrastructure, aimed at transforming the island into a global port-led city with sustainable eco-tourism.
• The Shipping Ministry has also sought 100 acres of land with a seafront for a proposed ship building and ship breaking facility, and an export-import port.

Concerns associated with the project

• Ecological degradation: It will lead to the destruction of around 33,000 acres of biodiversity-rich forests and will threaten marine ecosystems, including coral reefs and nesting grounds for endangered species.
• Humanitarian Concerns: The project will lead to the displacement of indigenous communities, like Payuh with traditional rights over Meroë and Menchal Islands, disrupting their livelihoods and cultural heritage.
• Transparency Issues: Multiple requests for detailed project information were denied under Section 8(1)(a) of the RTI Act, citing reasons of sovereignty, integrity, and security of the nation.

Concluding remarks

• While the Great Nicobar Project aims to boost economic growth and strategic presence, it risks environmental damage and indigenous displacement.
• A transparent, consultative, and ecologically sensitive approach is crucial to balance development with biodiversity conservation and safeguard the rights of local communities.

General Studies Paper -2

Context: The foreign minister of Maldives has arrived in India for a three-day visit. It is aimed at bolstering bilateral ties in key areas such as trade and investment.

Maldives & its Significance

• Strategic Importance: The Maldives is strategically located in the Indian Ocean, and its stability and security are of interest to India.
• Trade Route: Situated along crucial maritime trade routes between the Gulf of Aden and the Strait of Malacca, the Maldives acts as a “toll gate” for nearly half of India’s external trade and 80% of its energy imports.
• Counterbalancing China: Maldives presents an opportunity for India to counterbalance China’s growing influence in the Indian Ocean, fostering regional balance of power.

Brief on India – Maldives

• Participation in Multiple Forums: Both nations are founding members of the South Asian Association for Regional Cooperation (SAARC), the South Asian Economic Union and signatories to the South Asia Free Trade Agreement.
• Economic partnership: India emerged as Maldives’ largest trade partner in 2023.
  • India is one of the biggest investors and tourism markets for the Maldives, with significant trade and infrastructure projects underway. In 2023, India is the leading source market for Maldives with a 11.8% market share.
• Defense and Security Cooperation: Since 1988, defence and security has been a major area of cooperation between India and Maldives.
  • A comprehensive Action Plan for Defence was also signed in 2016 to consolidate defence partnership.
  • Estimates suggest that almost 70% of Maldives’ defence training is done by India.
• Connectivity: The Male to Thilafushi Link project, popularly known as the Greater Male Connectivity Project (GMCP), is a USD 530 million infrastructure project.
  • The project aims to connect Male to Villingili, Gulhifalhu and Thilafushi islands through a series of bridges, causeways and roads.
  • The project is crucial for the proposed Gulhifalhu Port, and will be a major catalyst for the Maldivian economy.

Challenges in Relations

• Domestic turmoil in the Maldives: Recent political upheavals and changes in government create uncertainty and complicate long-term cooperation projects.
• Chinese Influence: China’s growing economic presence in the Maldives, evidenced by investments in infrastructure projects and debt-trap diplomacy, is perceived as a challenge to India’s strategic interests in the region.
• Non-traditional threats: Piracy, terrorism, and drug trafficking remain concerns in the region, requiring continuous collaboration and intelligence sharing between India and the Maldives.
• Trade imbalance: The significant trade imbalance between India and the Maldives leads to resentment and calls for diversifying trade partnerships.

Way Ahead

• The evolution of India-Maldives relations reflects a combination of geopolitical dynamics, changes in leadership, and shared regional interests.
• India is steadfast in its commitments towards Maldives and has always walked the extra mile towards building relations.

By acknowledging and addressing the challenges, India and the Maldives can navigate the complexities of their relationship and build a stronger, more resilient, and mutually beneficial partnership for the future.

General Studies Paper -3

Context: Nuclear Power Corporation of India Ltd (NPCIL) has invited requests for proposals (RFPs) from private players to set up Bharat Small Reactors (BSRs).

About

• It is the first formal move by the Union government to decentralise the country’s nuclear power sector.
• Proposals are made for setting up 220 MW Bharat Small Reactors (BSR) for captive use.
  • BSRs are Pressurised Heavy Water Reactors (PHWR) with an impeccable safety and excellent performance record.
  • BSRs can provide a sustainable solution for decarbonization of hard to abate industries.
• Background: Union Budget for FY 2024-25 proposed partnerships with the private sector for research and developing Bharat Small Reactors (BSR), Bharat Small Modular Reactors (BSMR) as well as newer nuclear energy technologies.
  • This announcement is aimed at India’s ambitious pursuit of the decarbonisation of energy generation and achieving 500 Gigawatts of non-fossil fuel-based energy generation in India by 2030.

Nuclear Energy

• Nuclear power is not renewable energy but it is a zero-emission clean energy source.
• It generates power through fission, which is the process of splitting uranium atoms to produce energy.
  • The heat released by fission is used to create steam that spins a turbine to generate electricity without the harmful by-products emitted by fossil fuels.

Need for Private Players in Nuclear Sector

• Nuclear Capacity: India’s plans to increase its nuclear power capacity from the current 8,180 MW to 22,480 MW by 2031-32 and eventually 100 GW by 2047.
• India’s Targets: To reduce the emission intensity of its GDP by 44% by 2030 from the 2005 level.
  • To achieve 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.
• Other Reasons:
  • India is chasing nuclear energy as a source of power because it cannot reduce its emission intensity solely through renewable energy like solar, wind and hydro.
  • Even if it does achieve its Nationally Determined Contribution (NDC) target only through renewable energy, the cost of power then would be very expensive.

Governance

• NPCIL: India’s nuclear sector is governed by the Atomic Energy Act, 1962, under which only government-owned entities such as NPCIL can generate and supply nuclear energy.
  • There has been no private sector involvement in India’s nuclear power sector so far.
• Conditions for Private Stakeholders:
  • They have to find the land and incur the entire capex as well as opex including taxes.
  • After completion of the plant, the asset will have to be transferred to NPCIL for operation.
  • The power plant will be given the status of captive generating plant and the private entity will have full right on the electricity generated from the plant.
  • The firm will also be allowed to sell the power to other users.

Arguments in Favour of Private Sector Participation in Nuclear Power

• Improved Efficiency and Innovation: Private companies bring technological advancements, operational efficiency, and innovation, potentially reducing costs and improving safety standards.
• Increased Investment: Private players can attract more capital, helping to address the financial challenges of large nuclear projects.
• Faster Project Execution: Private entities, driven by competition and profit incentives, can complete nuclear projects faster and more effectively compared to government processes.
• Expertise and Global Standards: Private companies can bring global best practices, cutting-edge technology, and expertise to the nuclear industry, improving overall standards.
• Job Creation: The entry of private players can lead to increased employment opportunities in the nuclear sector, from construction to operations.

Arguments Against

• Safety and Security Risks: Private players may prioritize cost-cutting over rigorous safety measures, potentially risking catastrophic accidents.
• Lack of Transparency: Private companies may not be as transparent as public institutions, leading to a lack of accountability in the management of sensitive nuclear technologies.
• National Security Concerns: Involving private entities in nuclear power generation could raise concerns about the potential for foreign ownership, control, or influence over critical national infrastructure.
• Limited Regulatory Control: Ensuring strict regulatory oversight of private companies might be challenging, potentially leading to lapses in compliance with safety, environmental, and operational standards.
• Profit Motive Over Public Welfare: Private companies may prioritize profitability over public welfare, potentially compromising on environmental protections, worker safety, and the long-term sustainability of nuclear energy.

Way Ahead

• Clear Regulatory Framework: Establish a robust regulatory environment to ensure safety, compliance, and transparency, addressing concerns about accountability and national security.
• Public-Private Partnerships (PPPs): Promote partnerships where the government maintains oversight, while private players handle operations, innovation, and investment, ensuring a balance of interests.

Gradual Implementation: Start with pilot projects and small-scale initiatives to test private sector involvement, ensuring risk management before large-scale implementation.

General Studies Paper-3

Context: As India steps into 2025, its growth trajectory, while promising, faces several challenges that need to be addressed through comprehensive reforms to ensure sustained growth.

Economic Landscape of India (2025)

• GDP Growth: Over the past three years, the Indian economy performed well above expectations, growing at 8.7% in FY22, 7.2% in FY23, and 8.2% in FY24, driven by public capital expenditure, substantial investments in Global Capability Centres (GCCs), and surging service exports.
  • It slowed to 5.4% in the Q2 of the fiscal year 2024-25, a significant drop from the previous quarters that has been attributed to a combination of global geopolitical tensions, domestic inflation, and cautious private sector investment.
• Fiscal Prudence: According to the IMF, a projected decline in fiscal deficit from 6.4% to 5.9% of GDP in FY24 will stabilize public debt at around 83% of GDP — a promising indicator of sustainability, given India’s growth outlook.
  • The fiscal deficit target of 4.5% for FY2025-26 may allow room for increased government spending.
• Government Spending: Increased government expenditure, particularly in infrastructure and social sectors, is expected to boost economic activity.
  • The recent reduction in the Cash Reserve Ratio (CRR) by the RBI has freed up funds for banks to lend, stimulating investment.
• Capital Expenditure: The Union Budget 2023-24 allocated ₹10 lakh crore for capital investment, representing 3.3% of GDP.
  • National Infrastructure Pipeline (NIP) aims to invest ₹111 lakh crore in infrastructure projects by 2025, covering sectors like energy, roads, railways, and urban development.

Key Concerns

• Geopolitical Headwinds: Global economic uncertainties, such as US policy shifts and geopolitical tensions, pose additional risks.
  • Changes in US economic policies, including fiscal measures and interest rates, can have a significant impact on India’s economy.
  • Additionally, global trade dynamics and commodity prices can influence India’s inflation and growth prospects.
• Savings-investment Gap: The RBI’s latest Financial Stability Report shows net financial savings of households fell to 5.3% of GDP in FY23 from 7.3% in FY22, sharply below the 8% average of the previous decade.
• Fiscal Prudence: The RBI has flagged concerns over a sharp increase in expenditure by states on various subsidies, including farm loan waivers and cash transfers.
  • Other concerns are private sector investment, employment generation and economic disparities etc.

Key Reforms and Initiatives

• Goods and Services Tax (GST): It unified the country into a single market, simplifying the tax structure and boosting revenue collections.
  • In FY 2023-24, GST collections soared to ₹18 lakh crore, averaging ₹1.68 lakh crore monthly.
• Digital India initiative: It has been a game-changer, driving technological adoption and innovation across sectors.
  • It has not only enhanced governance but also spurred the growth of over 150,000 startups, creating more than 1.5 million jobs.
• Financial Inclusion and Poverty Reduction: The Pradhan Mantri Jan Dhan Yojana (PMJDY) has transformed access to banking services, with over 53 crore accounts opened by October 2024.
  • It has brought millions of previously unbanked individuals into the formal financial fold, reducing economic inequality.
  • According to NITI Aayog’s report, 24.82 crore people have escaped multidimensional poverty between 2013-14 and 2022-23.
• Market Performance and Investor Confidence: India’s market performance has been exceptional, with benchmark indices rising 28% in FY 2023-24 while maintaining low volatility.
  • It has bolstered investor confidence, attracting significant foreign investments and further strengthening the economy.

Suggested Reforms for Sustained Economic Growth in India

• Human Capital Development: Investing in human capital is crucial for boosting labor productivity and overall economic growth.
  • It involves improving the quality of education, enhancing skill development programs, and ensuring access to basic healthcare.
  • The Global Human Capital Report highlights India’s need to improve its human resource capital, which is essential for competing globally.
• Technological Advancements: Embracing technology is vital for increasing productivity and fostering innovation.
  • Enhancing technology readiness can significantly contribute to economic growth by improving efficiency across various sectors.
• Labor Market Reforms: Reforming labor laws to make them more flexible and industry-friendly is essential for attracting investments and creating jobs.
  • The integration of platforms like the e-Shram portal aims to provide comprehensive services to labor, including employment and skilling opportunities.
• Land and Property Reforms: Efficient land administration and urban planning are critical for sustainable development.
  • The introduction of the Unique Land Parcel Identification Number (ULPIN) and the digitization of land records are steps towards improving land management and reducing disputes.
• Financial Sector Reforms: Strengthening the financial sector is key to supporting economic growth.
  • The government plans to release a strategy document outlining the future vision for the financial sector, focusing on increasing its size, capacity, and skills.
  • Simplifying rules for Foreign Direct Investment (FDI) and promoting the use of the Indian Rupee for overseas investments are also part of this strategy.
• Tax Reforms: The Union Budget 2024-25 includes measures aimed at providing tax relief to the middle class, encouraging innovation, and fostering economic growth.
• Infrastructure Development: The Production-Linked Incentive (PLI) scheme aims to attract investments and enhance production capacity in key sectors. Developing sustainable infrastructure and promoting green technologies are also important for long-term growth.
• Promoting Inclusive Growth: Ensuring that economic growth benefits all sections of society is essential for sustainable development.
  • Government initiatives aimed at empowering the middle class, reducing poverty, and promoting social equity are critical for achieving inclusive growth.

Conclusion

• India’s path to sustained economic growth requires a multifaceted approach, focusing on human capital, technological advancements, labor market reforms, land and property management, financial sector strengthening, tax simplification, infrastructure development, and inclusive growth.
• By implementing these key reforms, India can achieve its vision of becoming a $55 trillion economy by 2047.

General Studies Paper-3

Context: India recently submitted its Fourth Biennial Update Report (BUR-4) detailing its Greenhouse Gas Emission (GHG) inventory and the efforts it has taken to curb emissions to the UNFCCC.

Key Highlights of the Report

• GHG Emission Reduction: India’s GDP emissions intensity reduced by 36% from 2005 to 2020, on track to meet the target of 45% reduction by 2030.
• Sectoral Emissions: Energy (75.66%), Agriculture (13.72%), Industrial Processes (8.06%), and Waste (2.56%).
• Breakdown of GHGs: CO2 (80.53%), methane (13.32%), and nitrous oxide (5.13%).
• Progress on NDC Targets: Emission intensity of GDP was reduced by 36% from 2005 to 2020.
  • Non-fossil fuel capacity reached 46.52%, with renewable power capacity growing to 203.22 GW.
  • Additional 2.29 billion tonnes CO2 absorbed through afforestation (2005–2021).
  • India continues to strive towards its climate goals, including the ambitious target of achieving net-zero emissions by 2070.

Challenges Identified

• Financial Needs: Enhanced funding for scaling mitigation and adaptation efforts.
• Technology: Advanced tools needed for renewable energy, carbon capture, and efficiency improvements.
• Capacity Building: Strengthened institutional frameworks and workforce skills.

What proactive steps  India has taken to combat climate change?

• Renewable Energy Expansion: India aims to achieve 500 GW of installed renewable energy capacity by 2030, with a focus on solar, wind, and other clean energy sources.
  • The National Solar Mission has significantly boosted solar power generation capacity across the country.
• Energy Efficiency Initiatives: Like Perform, Achieve, and Trade (PAT) scheme and UJALA Program.
• Increasing Forest and Tree Cover: Forest and tree cover currently stands at 25.17% of the country’s total geographical area and has consistently increased.
• Supporting Global Climate Initiatives: International Solar Alliance (ISA), and Coalition for Disaster Resilient Infrastructure (CDRI).
• Other National Schemes: PM-Surya Ghar Muft Bijli Yojana, National Bio-Energy Programme, and National E-Bus Programme etc.
• Lifestyle for Environment (LiFE) Movement: Focuses on encouraging sustainable living practices to reduce environmental impact.

General Studies Paper -3

Context: Recently, the Reserve Bank of India (RBI) released its Financial Stability Report (FSR), December 2024 highlighting several critical aspects of the Indian and global financial landscapes.

• Financial Stability Report (FSR) is published by RBI bi-annually on behalf of the Financial Stability and Development Council (FSDC).

Key Highlights of the Report

• Stress Tests and Resilience: Macro stress tests conducted by the RBI demonstrate that most SCBs have sufficient capital buffers to withstand adverse scenarios.
  • The resilience of mutual funds, clearing corporations, and non-banking financial companies (NBFCs) is also validated through these tests.
• Government Finance: The central government’s debt-to-GDP ratio is expected to decrease from 62.7% in 2020-21 to 56.8% by 2024-25.
  • Similarly, states’ outstanding liabilities are projected to decline from 31% to 28.8%.
• Economic Growth Projections: The report projects that the Indian economy will expand by 6.6% in FY25 (2024-25), driven by a revival in rural consumption, increased government spending, and strong services exports.
• Rising Non-Performing Assets (NPAs): The report indicates a potential rise in the share of bad loans among commercial banks.
  • Under baseline stress scenarios, the Gross Non-performing Asset (GNPA) ratio could increase from 2.6% in September 2024 to 3% by March 2026.
• Domestic Financial Stability: Despite global uncertainties, the Indian financial system remains robust.
  • The soundness of Scheduled Commercial Banks (SCBs) is supported by strong profitability, and adequate capital and liquidity buffers.
  • The return on assets (RoA) and return on equity (RoE) for banks are at decadal highs.
• Sectoral Insights: The FSR highlights concerns in specific sectors, such as microfinance and consumer credit, which require close monitoring.
• Insurance Sector: It maintains a robust solvency ratio, indicating its stability.

Key Concerns Highlighted in the FSR of RBI

• High Public Debt: Although the Union government’s debt-to-GDP ratio is expected to decrease from its pandemic peak, it remains a concern for long-term fiscal sustainability.
• Global Economic Vulnerabilities: These include stretched asset valuations, high public debt, prolonged geopolitical conflicts, and emerging technological risks.
  • These factors pose medium-term risks to global financial stability.
• Geopolitical Conflicts: Prolonged geopolitical conflicts can disrupt global supply chains, affect commodity prices, and lead to financial market volatility, all of which can have adverse effects on the Indian economy.
• Emerging Technological Risks: Cybersecurity threats, data privacy issues, and the potential for technological disruptions in financial services are highlighted as areas requiring close monitoring and robust regulatory frameworks.
• Climate Change: Extreme weather events and the transition to a low-carbon economy could have significant implications for financial institutions and the broader economy.

General Studies Paper -2

Context: The One Nation One Subscription (ONOS) initiative is a landmark step aimed at democratizing access to global scholarly knowledge in India. It aligns with the broader goals of NEP 2020 and ViksitBharat@2047.

Implementation of ONOS

• Role of INFLIBNET: The Information and Library Network Centre under UGC will centrally manage the subscription and distribution, ensuring seamless digital access to resources. A centralized platform will simplify access and reduce administrative burdens.
• Funding: A ₹6,000 crore budget has been allocated for the scheme’s first phase (2025–2027).
• Phase I (2025–2027): Establish the framework, provide access to research materials, and negotiate Article Processing Charges (APCs) for Indian researchers.

Benefits

• Democratization of Knowledge: Provides equitable access to international research resources across tier-2 and tier-3 cities, addressing regional disparities in research opportunities.
• Boosts Research Quality: Access to high-quality journals enhances research capabilities, enabling Indian researchers to contribute to cutting-edge global innovations.
• Cost Efficiency: Centralized funding reduces duplication of subscriptions by individual institutions, saving costs for HEIs and research centers.
• Discounts on Article Processing Charges (APCs) make publishing in high-impact journals more accessible.
• Fosters Collaboration: Integration with global research communities promotes interdisciplinary and international collaborations, elevating India’s global research footprint.
• Support for National Development: Enhances India’s R&D ecosystem, supporting innovation in critical areas like STEM, medicine, and social sciences, which are pivotal for economic growth and self-reliance.
• Improved Academic Infrastructure: Complements initiatives like the Anusandhan National Research Foundation (ANRF), creating a more robust research infrastructure.

Challenges

• Administrative Complexity: Coordinating access for 6,300 institutions with diverse needs may pose significant logistical and administrative challenges.
• Digital Divide: Effective utilization of digital resources may be hindered by infrastructure gaps in tier-2 and tier-3 cities, such as unreliable internet connectivity or lack of digital literacy.
• Limited Scope: The scheme covers only select international journals, and many researchers might still require access to resources not included in Phase I.
• Sustainability: Long-term funding for such a large-scale initiative requires careful planning to ensure it remains viable without compromising quality.
• Monitoring and Evaluation: Measuring the actual impact of the initiative on research output and innovation can be challenging.
• Dependency on Global Publishers: Heavily relying on foreign publishers may limit India’s leverage in negotiations and could lead to higher costs over time.

Way Ahead

• Strengthen Infrastructure: Improve digital connectivity and provide training in digital resource usage for institutions in remote areas.
• Phase Expansion: Gradually expand ONOS to include more journals, databases, and even regional or Indian language resources to broaden access.
• Promote Open Access: Encourage Indian researchers to utilize Open Access (OA) platforms and build national repositories for sharing research outputs freely.
• Enhance Negotiation Leverage: Collaborate with other nations to negotiate better terms with publishers, including lower APCs and subscription costs.
• Focus on Research Outputs: Develop metrics to assess the impact of ONOS on research quality, innovation, and India’s global rankings in R&D.
• Support Regional Institutions: Provide additional resources for smaller or less-resourced institutions to make full use of ONOS benefits.

Public Awareness and Training: Launch awareness campaigns and workshops for researchers, faculty, and students on maximizing the use of ONOS resources.

General Studies Paper -3

Context: The rise of natural farming among Shimla’s apple growers marks a transformative shift toward sustainable agriculture.

Natural Farming

• Natural farming is an approach to agriculture that emphasizes working with nature’s processes to grow crops in a sustainable and holistic way.
• It follows local agro-ecological principles rooted in indigenous knowledge, location-specific technologies, and adaptations to local agro-ecology.
• One of the central ideas of natural farming is to minimize reliance on external inputs and create a system that can sustain itself over the long term.
• Key practices of natural farming include:
  • Minimal Soil Disturbance;
  • Use of Organic Inputs;
  • Biodiversity and Polyculture;
  • Water Conservation;
  • Natural methods to manage pests;
  • Synthetic fertilizers, herbicides, and pesticides are avoided.

Natural Vs. Organic Farming

• Natural farming emphasizes minimal intervention with nature, avoiding tilling, fertilizers, and even weeding.
• It focuses on creating self-sustaining ecosystems with little to no external inputs, trusting nature to maintain soil health and manage pests.
• Organic farming follows specific certification standards that prohibit synthetic chemicals and genetically modified organisms (GMOs).
• It allows the use of organic fertilizers, pesticides, and tilling.
• It tends to be more structured and regulated than natural farming.

Natural Farming in Practice

• There are several states practicing Natural Farming. Prominent among them are Andhra Pradesh, Chhattisgarh, Kerala, Gujarat, Himachal Pradesh, Jharkhand, Odisha, Madhya Pradesh, Rajasthan, Uttar Pradesh and Tamil Nadu.

Benefits of Natural Farming

• Environmental Sustainability: It helps protect soil health, reduces pollution, and supports biodiversity.
• Resilience to Climate Change: Natural farming promotes agricultural practices that can adapt to changing climates, such as drought-tolerant crops and sustainable water use.
• Healthier Food: Food produced without chemical fertilizers and pesticides is considered safer and more nutritious.
• Economic Benefits: Over time, natural farming can reduce costs related to chemical inputs and increase the resilience of farms, potentially leading to higher yields.

Challenges

• Learning Local Ecosystem: It requires a deep understanding of local ecosystems, which can take time to learn and apply effectively.
• Labor-Intensive: In the transition period, natural farming is more labor-intensive and initially produces lower yields compared to conventional farming.
• Market Demand: Although organic products are gaining popularity, natural farming does not always meet mainstream market expectations or certification standards.

Government Initiatives

• Pradhan Mantri Krishi Sinchayee Yojana (PMKSY): The promotion of drip and sprinkler irrigation systems under this program can be adapted to natural farming practices.
• National Mission on Natural Farming (NMNF): The Union Cabinet announced the NMNF as a standalone Centre-sponsored scheme under the Ministry of Agriculture & Farmers’ Welfare.
  • It aims to promote natural farming among one-crore farmers across the country.
  • It will be implemented in 15,000 clusters in Gram Panchayats, covering approximately 1 crore willing farmers.
• Soil Health Card Scheme: Launched in 2015, this initiative provides farmers with soil health cards that offer detailed information about the nutrient content and pH levels of their soil.
• National Mission on Sustainable Agriculture (NMSA): Launched in 2014, encourages the adoption of sustainable farming techniques, including natural farming, to improve soil health, conserve water, and enhance productivity.
• National Organic Farming Research Institute (NOFRI): It focuses on improving soil health, developing organic farming technologies, and promoting sustainable agricultural practices.
• States Practicing: There are several states practicing Natural Farming.
  • Prominent among them are Andhra Pradesh, Himachal Pradesh, Gujarat, Kerala, Jharkhand, Odisha, Madhya Pradesh, Rajasthan, Uttar Pradesh and Tamil Nadu.

Way Ahead

• The Government is increasingly recognizing the importance of natural farming in addressing environmental challenges, improving farmer incomes, and ensuring food security.
• These efforts, when combined with local farmer participation and state-level innovation, hold great promise for the future of sustainable agriculture in India.

General Studies Paper -3

Context: India’s manufacturing sector has witnessed remarkable growth this year, underscoring its transformation into a global powerhouse.

About

• Toy exports grew by 239%, and mobile phone production by 600%.
• By 2024, India ranked among the top four nations with the largest foreign exchange reserves, exceeding $700 billion.
• In the Global Innovation Index 2024, the country climbed to 39th place up from the 81st in 2015.

India’s Manufacturing Sector

• Manufacturing exports have registered their highest ever annual exports of US$ 447.46 billion with 6.03% growth during FY23.
• By 2030, the Indian middle class is expected to have the second-largest share in global consumption at 17%.
• India’s gross value added (GVA) at current prices was estimated at US$ 770.08 billion as per the quarterly estimates of the first quarter of FY24.
• India’s e-commerce exports are projected to grow from US$ 1 billion to US$ 400 billion annually by 2030, aiding in achieving US$ 2 trillion in total exports.
• India’s smartphone exports surged by 42% in FY24, reaching US$ 15.6 billion, with the US as the top destination.

Challenges faced by India’s manufacturing sector

• Technological gap: Indian manufacturing lags in the adoption of Industry 4.0 technologies such as automation, IoT, and AI, reducing global competitiveness.
• Skill Gap: There is a significant gap between the skills of the available workforce in India and the needs of modern manufacturing.
• Supply Chain Disruptions: High dependency on imported raw materials and components, especially from China, exposes the sector to global supply chain disruptions.
• Governance Issues: Frequent changes in industrial policies along with delays in their implementation create uncertainty for investors.
• Global Competition: India faces stiff competition from countries like China, where manufacturing costs are lower due to economies of scale and more efficient infrastructure.

Initiatives taken by Government

• Goods and Services Tax (GST): The introduction of GST streamlined indirect taxation and automated tax compliances, easing the burden for businesses.
  • Reductions in corporate taxes along with simplified construction permits and the abolition of archaic laws were implemented to improve the ease of doing business.
• FDI policy: Nearly all sectors allow for 100% FDI, except for certain prohibited sectors.
  • For example the defence industry allows 74% FDI under the automatic route and 100% under the government route.
  • Initiatives like Make in India and Digital India, improved infrastructure and ease of doing business, supported by various incentives, have stimulated domestic manufacturing and attracted foreign investments.
  • Make in India Mittelstand (MIIM) , a collaboration between India and Germany, focuses on driving innovation and enhancing economic cooperation by encouraging small and medium-sized German companies to invest and manufacture in India.
  • Japan-India Make-in-India Special Finance Facility: The fund aims to promote direct investment of Japanese companies and trade from Japan to India, including the development of necessary infrastructure.
  • Production Linked Incentive (PLI) Scheme: The PLI scheme has prompted major smartphone companies like Foxconn, Wistron and Pegatron to shift suppliers to India, resulting in the manufacture of top-end phones in the country.

Way Ahead

• India approved the construction of three semiconductor plants with investments exceeding $15 billion.
• This initiative aligns with India’s goal to bolster its semiconductor ecosystem and create numerous advanced technology jobs.
• The Mega Investment Textiles Parks (MITRA) scheme to build world-class infrastructure will enable global industry champions to be created, benefiting from economies of scale and agglomeration.
• The Ministry of Heavy Industries & Public Enterprises initiative of SAMARTH Udyog Bharat 4.0, or SAMARTH Advanced Manufacturing and Rapid Transformation Hubs,  is expected to increase competitiveness of the manufacturing sector in the capital goods market.