General Studies Paper -3

Context: India has witnessed an 83% increase in the national fish production since 2013-14, which stands at a record 175 lakh tons in 2022-23.

Fisheries Sector of India

• India is the second-largest fish and aquaculture producer globally.
• 75% of the production is from inland fisheries.
• Andhra Pradesh is the largest fish producer in the country followed by West Bengal and Gujarat.
• Strengthening last-mile fisheries and aquaculture extension services is of paramount importance.
• Such extension should provide request-based services to fishers/fish farmers on the life cycle of improved species cultured, water quality, disease, and available rearing technologies.

Challenges of the Fisheries Sector in India

• Overfishing: Overexploitation of fish stocks due to excessive fishing is a significant challenge.
  • Illegal, Unreported, and Unregulated (IUU) Fishing: IUU fishing undermines efforts to manage and conserve fish stocks.
  • It includes activities such as fishing without proper authorization, disregarding catch limits, and using banned fishing gear.
• Poor Fisheries Management: Limited enforcement of regulations, lack of comprehensive data on fish stocks, and inadequate monitoring and control measures exacerbate the problem of overfishing and IUU fishing.
• Lack of Infrastructure and Technology: Inadequate infrastructure and outdated fishing technology hinder the efficiency and productivity of the fisheries sector.
• Pollution and Habitat Destruction: Pollution from industrial activities, coastal development, and agricultural runoff poses a threat to marine and freshwater habitats.
• Climate Change: Climate change is altering oceanic and freshwater environments, affecting fish distribution, migration patterns, and reproductive cycles.
• Socio-economic Issues: Poverty, lack of alternative livelihood options, and unequal distribution of resources contribute to the vulnerability of fishing communities.

Government Initiatives for the Growth of the Sector

• National Fisheries Development Board (NFDB): Established in 2006, NFDB serves as the apex body for the planning and promotion of fisheries development in India.
• Blue Revolution: Launched in 2015, the Blue Revolution aims to promote sustainable development and management of the fisheries sector.
• Sagarmala Programme: The Sagarmala Programme, launched in 2015, aims to promote port-led development and unlock the potential of India’s maritime sector.
  • It includes initiatives to develop fishing harbors, cold chain infrastructure, and fish processing facilities to support the growth of the fisheries sector.
• Pradhan Mantri Matsya Sampada Yojana (PMMSY): Launched in 2020, this scheme aims to increase fish production, boost aquaculture, and improve infrastructure.
  • In order to address the infrastructure requirement for fisheries sector, the union Government during 2018-19 created the Fisheries and Aquaculture Infrastructure Development Fund (FIDF) with a total funds size of Rs 7522.48 crore.
  • In the earlier phase of implementation of FIDF during the period from 2018-19 to 2022-23, a total 121 fisheries infrastructure projects have been approved for creation of various fisheries infrastructures.
• National Fisheries Policy: The Government of India formulated the National Fisheries Policy in 2020 to provide a comprehensive framework for the sustainable development of the fisheries sector.
  • The policy focuses on promoting responsible fisheries management, conserving aquatic biodiversity, enhancing fish production, and improving the socio-economic status of fishers and fish farmers.
• Fish Farmers Development Agencies (FFDAs): The Government has established FFDAs at the district level to provide technical guidance, training, and extension services to fish farmers.
  • These agencies play a crucial role in disseminating knowledge about modern aquaculture practices, facilitating access to credit and inputs, and promoting entrepreneurship in the fisheries sector.
• Coastal Aquaculture Authority (CAA): The CAA regulates and promotes coastal aquaculture activities to ensure sustainable development and environmental conservation.
  • It formulates guidelines for shrimp farming, regulates the use of coastal land for aquaculture purposes, and monitors compliance with environmental norms to prevent adverse impacts on coastal ecosystems.

Way Ahead

• The fisheries sector in India holds significant potential for growth and development, given the country’s extensive coastline, numerous rivers, and inland water bodies.
• Measures that can further help the sector:
• Strengthening monitoring and enforcement mechanisms to combat illegal, unreported, and unregulated (IUU) fishing activities.
• Providing financial support and incentives for adopting sustainable practices and modern technologies in fisheries.
• Ensuring the protection and restoration of aquatic habitats such as mangroves, coral reefs, and wetlands.
• Strengthening supply chain infrastructure and establishing better market linkages to ensure fair prices for fishers and access to domestic and international markets.

General Studies Paper -1

Context: Prime Minister Narendra Modi laid the foundation stone of the interstate Ken-Betwa river linking project.

Ken-Betwa River Linking Project

• In 2021, a memorandum of agreement was signed among the Ministry of Jal Shakti and the governments of Madhya Pradesh and Uttar Pradesh to implement the Ken-Betwa Link Project.
• Project:
  • Transferring water from the Ken river to the Betwa river, both tributaries of the Yamuna.
  • The Ken-Betwa Link Canal will be 221 km in length, including a 2-km tunnel.
  • It has two phases. Phase-I will involve building the Daudhan Dam complex and its subsidiary units.
  • Phase-II will involve three components — Lower Orr Dam, Bina Complex Project and Kotha Barrage.
  • It is the project under the National Perspective Plan for interlinking rivers

Regions to be Benefited:

• The project lies in Bundelkhand, which spreads across 13 districts of Uttar Pradesh and Madhya Pradesh.
• The project will be of immense benefit to the water-starved region.
• Completion: It is proposed to be implemented in eight years.

Significance of River Linking Projects

• Reduction of Water Scarcity: It helps transfer surplus water from water-rich regions to water-deficient areas, addressing water scarcity issues.
• Improved Water Availability for Agriculture: Increased water availability in dry regions to enhance agricultural productivity.
• Mitigation of Floods: Interlinking rivers help distribute excess water during periods of heavy rainfall, reducing the risk of floods in specific regions.
• Increased Hydropower Potential: The construction of reservoirs and canals for interlinking projects create opportunities for hydropower generation.
• Job Creation: The construction and maintenance of interlinking infrastructure create job opportunities, contributing to economic development.
• Conflict Resolution: River interlinking projects potentially reduce inter-state disputes over water resources by providing a more equitable distribution of water.

Concerns with the River Linking Projects

• Ecosystem Disruption: Altering natural river courses and diverting water can disrupt ecosystems, leading to habitat loss, changes in biodiversity, and potential extinction of species.
• Displacement of Communities: The construction of dams, reservoirs, and canals for river interlinking result in the displacement of communities, leading to social and economic hardships for affected populations.
• Inter-State Disputes: River interlinking projects often involve multiple states, and disagreements arise over water sharing, leading to inter-state disputes.
• Financial Viability: The construction of large-scale infrastructure for river interlinking projects can be economically challenging, with costs often exceeding initial estimates.
• Seismic Risks: Areas prone to earthquakes face increased risks due to the construction of large dams and other infrastructure.
• Maintenance Issues: Neglecting maintenance can lead to system failures and adverse consequences.
• Community Resistance: Local communities and environmental activists often oppose river interlinking projects due to concerns about their impact on the environment, livelihoods, and cultural heritage.

Conclusion

• Addressing the concerns requires comprehensive planning, environmental impact assessments, community engagement, and transparent decision-making processes.
• Sustainable water management practices, incorporating modern technologies and adaptive strategies, are essential to mitigate the potential negative consequences of river interlinking projects.

General Studies Paper -3

Context: India and Saudi Arabia are enhancing defence cooperation by focusing on joint ventures and industrial collaboration to localise defence production.

India Saudi Defence collaboration

• India and Saudi Arabia are focusing on strengthening defence ties to achieve self-reliance and mutual growth in defence manufacturing.
• Common goals: Saudi Arabia aims to localise 50% of its defence spending under Vision 2030, aligning with India’s Make in India initiative.
• Saudi Arabia signed a $250 mn contract for ammunition from Munitions India Limited, a Defence Public Sector Undertaking.
• Saudi Arabia has procured the 155mm Advanced Towed Artillery Gun System (ATAGS) from Bharat Forge.
• Joint exercises:
  • Sada Tanseeq: The inaugural Army exercise held in Rajasthan in January 2024.
  • Tarang Shakti: Saudi Arabia participated as an observer in India’s largest air exercise.
  • Al Mohed Al Hindi: Bilateral naval exercise initiated in 2022.

India Saudi Arabia Relations

• Political Relations: The two countries established diplomatic relations in 1947.
  • The royal visit of 2006 resulted in the signing of the Delhi Declaration, which was followed in 2010 by the Riyadh Declaration that elevated bilateral ties to a strategic partnership.
  • The Strategic Partnership Council (SPC) Agreement was signed during the 2019 visit of the Indian PM to Riyadh, which established a high-level council to steer the Indo-Saudi relationship.
• Economic Relations: India is Saudi Arabia’s second-largest trade partner; Saudi Arabia is India’s fourth-largest trade partner.
  • The bilateral trade between the partners stood at $43.3 billion in 2023-24. Saudi’s direct investments in India amounted to $3.15 billion (as of March 2022).
  • There were 2,783 Indian companies registered as joint ventures/ 100% owned entities with investments worth approximately $2 billion in the kingdom. (As of January 2022)
• Energy Cooperation: Saudi Arabia was India’s third largest crude and petroleum products source for FY23.
  • India imported 39.5 million metric tonnes (MMT) of crude from the country in FY23, amounting to 16.7% of India’s total crude imports.
  • India’s LPG imports from Saudi Arabia stood at 7.85 MMT, and 11.2% of its total petroleum product imports, in FY 23.
• Indian diaspora: As of 2023, there were 2.6 million Indians in Saudi Arabia. This is the second largest number of foreign workers in the country, after Bangladesh.

Future Outlook

• The shared aspiration to reduce dependence on defence imports and boost local production presents significant opportunities for both nations.
• Joint ventures and collaboration in cutting-edge technologies such as AI and cybersecurity can enhance strategic autonomy.
• By aligning their goals under Vision 2030 and Make in India, India and Saudi Arabia can emerge as pivotal partners in shaping the global defence landscape.
• Continued collaboration is essential to ensure Indian workers’ success in Saudi Arabia, contributing to greater economic stability and development for both countries.

General Studies Paper -2

Context: The India-Russia relationship has been a cornerstone of international diplomacy for decades, and its impact is set to grow even more significant in upcoming years.

• However, the evolving geopolitical landscape and the influence of Western countries have had a significant impact on this partnership.

About the India-Russia Relationship

• The India-Russia relationship dates back to the Cold War era, with both countries collaborating on various fronts, including defense, technology, and space exploration.
• It has evolved significantly since the signing of the Declaration on the India-Russia Strategic Partnership in October 2000, and was elevated to the level of Special and Privileged Strategic Partnership during Russian President Vladimir Putin’s visit to India in December 2010.

Key Areas of Cooperation That Will Shape the World in Upcoming Years

• Strategic Partnership: The India-Russia relationship is built on mutual respect and trust, with both countries actively cooperating in various international organizations such as the United Nations, BRICS, and SCO.
  • Russia has been a steadfast supporter of India’s aspiration to become a permanent member of the UN Security Council.
  • The two nations have held 21 Annual Summits since 2000, with the most recent one held in Moscow in July 2024.
• Political and Security Cooperation: The two countries engage in regular high-level dialogues, including the 2+2 Dialogue involving their Foreign and Defence Ministers.
  • These dialogues ensure regular interaction and follow-up on cooperation activities.
• Economic Ties: India and Russia have strong economic ties, with significant cooperation in energy, engineering, agriculture, and high technology.
  • Both countries have set ambitious targets to boost bilateral trade to over $100 billion by 2030.
  • Russia is one of the largest suppliers of oil and gas to India, and they are exploring new avenues for trade and investment. The focus on sectors such as energy, pharmaceuticals, and technology will drive economic growth and create job opportunities in both nations.
  • This economic partnership will encourage other countries to engage more deeply with India and Russia.
• Military-Technical Cooperation: Russia supplies India with modern weapons and military equipment and assists in training Indian military specialists.
  • The induction of advanced warships like the INS Tushil and the ongoing development of the BrahMos Supersonic Cruise Missile System highlight the depth of this cooperation.
  • Joint exercises and exchange of experience further strengthen the defense potential of both countries.
  • It not only strengthens India’s defence capabilities but also contributes to regional stability and security.
• Technological Innovation: India and Russia are collaborating on cutting-edge technologies, including quantum computing, cyber-physical systems, and biotechnology.
  • These joint efforts will lead to breakthrough innovations that can address global challenges such as climate change, healthcare, and sustainable development.
  • The BioE3 Policy 2024 is a prime example of this collaboration, aiming to leverage biotechnology for economic, environmental, and employment benefits.
• Geopolitical Influence: As both countries navigate complex international relations, their partnership will provide a counterbalance to other global powers.
  • This influence will be particularly significant in regions such as South Asia and the Indo-Pacific, where strategic interests converge.
• Cultural and People-to-People Ties: Both nations have a rich cultural heritage and regularly organize joint cultural events such as festivals, exhibitions, and concerts.
  • Educational programs, tourism, and cultural festivals will foster mutual understanding and goodwill.
  • These ties will not only enhance bilateral relations but also contribute to global cultural diversity and cooperation.

Balancing Act of India: Western Influences on India-Russia Relationship

• Diplomatic Balancing: While India seeks to strengthen its ties with Western countries, it also values its long-standing relationship with Russia.
  • It allows India to maintain its strategic autonomy and pursue its national interests without alienating either side.
• Geopolitical Dynamics: The West’s stance on Russia, especially following the annexation of Crimea in 2014 and the invasion of Ukraine in 2022, has created a complex geopolitical environment.
  • While many Western countries have imposed sanctions on Russia, India has maintained a neutral position.
  • It has allowed India to continue its energy trade and defense cooperation with Russia, despite Western pressure.
• Defense Cooperation: India’s defense ties with the West have deepened in recent years, with increased cooperation with NATO partners and the United States.
  • It has led to a diversification of India’s defense procurement, reducing its dependence on Russian military equipment.
  • However, Russia remains a significant supplier of arms to India, and the two countries continue to collaborate on defense projects.
• Economic Relations: Western sanctions on Russia have impacted global trade, but India has managed to navigate these challenges by increasing its trade with Russia.
  • India’s purchase of discounted Russian crude oil and exports of food and pharmaceuticals to Russia have strengthened bilateral trade.
  • This trade boom has helped India maintain its energy security and economic stability.

Conclusion

• The India-Russia relationship is poised to have a profound impact on the world in upcoming years, shaping strategic, economic, technological, geopolitical, and cultural landscapes.
• As India and Russia continue to deepen their partnership, the global community will witness the benefits of this enduring and expanding collaboration.
• India’s growing ties with the United States and other Western countries may lead to further diversification of its defense and economic partnerships.

General Studies Paper -3

Context: The Indian rupee recently crossed the 85-mark against the US dollar, continuing a long-term trend of weakening relative to the dollar. A decade ago, this rate was ₹61, and it was ₹83 earlier this year.

Exchange Rate

• Definition: The exchange rate is the value of one currency relative to another. For instance, ₹85 per $1 means 85 Indian rupees are required to buy one US dollar.
  • When the demand for the US dollar exceeds the demand for the rupee, the rupee weakens, and the dollar strengthens.
• Function: It determines how much of one currency is needed to trade for another, crucial for international trade and investments.

Factors Responsible for Weakening Rupee

• Trade Deficit: India’s trade deficit widened to $26.83 billion in October 2024, indicating a higher demand for dollars to pay for imports. This contributes to the rupee’s weakness.
• Capital Outflows: Foreign portfolio investors have pulled out a net amount of Rs 43,856 crore from Indian markets in 2024 so far (until December 20th), putting downward pressure on the rupee.
• Stronger US Dollar: The US dollar index, which measures the dollar against a basket of major currencies, has risen by about 15% this year, reflecting the dollar’s strength and making other currencies, including the rupee, weaker in comparison.
• High Inflation: India’s retail inflation has remained above the RBI’s target range of 2-6% for most of this year, reaching 6.77% in October. This higher inflation compared to many trading partners can make Indian exports less competitive.
• Trade in Services: If Indians spend more on US services (like tourism) than Americans on Indian services, demand for dollars increases.

Impacts of a Weaker Rupee

• Costlier Imports: Crude oil prices have risen by over 10% this year, and a weaker rupee further increases the cost of importing oil, contributing to inflation and impacting household budgets.
• Debt Burden: India’s external debt stood at $620.7 billion at the end of June 2024. A weaker rupee increases the cost of servicing this debt, putting pressure on government finances.
• Outbound Travel: The cost of traveling to the US has increased significantly. For example, a trip that cost Rs 5 lakh a year ago would now cost around Rs 5.75 lakh due to the rupee’s depreciation.
• Benefits for Exporters: A weaker rupee can make Indian exports more competitive in the global market, potentially boosting export-oriented industries.

Steps to Strengthen the Rupee

• Boost Exports: The government is aiming to boost exports through initiatives like Production Linked Incentive (PLI) schemes. India’s merchandise exports grew by 10.3% year-on-year in November 2024, indicating some positive momentum.
• Attract Foreign Investment: The government has taken steps to improve the ease of doing business and attract FDI. India received $46.1 billion in FDI between April and September 2024.
• Control Inflation: The RBI has been raising interest rates to combat inflation. However, inflation remains a challenge.
• Diversification: India is exploring rupee trade with several countries to reduce reliance on the US dollar.

Conclusion

The weakening of the Indian rupee is a complex issue with multiple contributing factors. While it presents challenges, it also offers opportunities for export-oriented industries. The government needs to continue its efforts to address the underlying causes, manage the negative impacts, and leverage the potential benefits of a weaker rupee.

General Studies Paper -3

Context: India’s youth are seen as the country’s greatest strength in driving the vision of a developed nation by 2047.

About the vision of Viksit Bharat by 2047.

• The Viksit Bharat @2047 initiative envisions a developed India by the centenary of independence, focusing on inclusive development, sustainable progress, and effective governance, with youth playing a central role.
• Prime Minister Narendra Modi emphasized that youth are both the agents and beneficiaries of change.
• Strategy
• The Union Budget 2024-25 outlines a comprehensive strategy to achieve ‘Viksit Bharat’ by focusing on nine key priorities that aim to create abundant opportunities for all citizens.
• Productivity and resilience in Agriculture
• Employment & Skilling
• Inclusive Human Resource Development and Social Justice
• Manufacturing & Services
• Urban Development
• Energy Security
• Infrastructure
• Innovation, Research & Development and
• Next Generation Reforms

Key Challenges

• Economic Inequality: The stark economic disparity that exists between various regions, communities, and income groups.
• Skill Development and Education : A large proportion of the youth still lacks the skills required for a rapidly changing job market, particularly in sectors like technology, healthcare, and sustainable industries.
  • Moreover, the educational infrastructure in rural areas remains inadequate, leaving many students without access to high-quality learning.
• Climate Change: The country faces serious environmental challenges, including air and water pollution, deforestation, and climate change impacts. Rapid industrialization, urbanization, and agricultural practices have put significant pressure on natural resources.
• Governance and Corruption: Corruption and inefficiencies in public administration remain pervasive in many areas.
  • This hampers progress and delays essential reforms.
• Technological Impacts: Advancements in AI and technology boost productivity but pose risks such as labor market disruptions and income inequality.

Conclusion and Way Forward

• India’s path to Viksit Bharat is paved with comprehensive initiatives aimed at fostering inclusive growth, enhancing productivity, and promoting sustainable development.
• By addressing key challenges and leveraging its demographic dividend, India is poised to achieve its vision of becoming a developed nation.
• Strengthening institutions, improving transparency, and ensuring accountability at all levels of government are vital for creating a stable and thriving nation.
• The journey towards Viksit Bharat is not just a government mandate but a collective mission that involves every citizen, industry, and institution working towards a brighter and more prosperous future.

General Studies Paper -2

Context: BharatNet, has helped connect more than 2.14 lakh gram panchayats by utilising optical fibre, radio, and satellite technologies.

Background

• The government of India launched BharatNet in October 2011, under the Ministry of Communications.
• It is an ambitious project aimed at providing affordable high-speed internet access to every Gram Panchayat in the country.
• BharatNet operates as the world’s largest rural broadband connectivity program.

Amended BharatNet 2023

• In 2023, the government approved the Amended BharatNet Program (ABP) at a cost of Rs. 1,39,579 crores.
• The program provides for internet access by Optical Fibre (OF) connectivity to 2.64 lakh GPs in ring topology and also to provide connectivity to the remaining non-GP villages (approx. 3.8 lakhs) on demand basis.
• The ABP is aiming at;
  • Provision of optical fiber connectivity to non-GP villages on demand basis,
  • Provision for Operation and maintenance for 10 years, including monitoring of network uptime through Centralized Network Operating Centre (CNOC) and payment to Project Implementation Agency (PIA) as per Service Level Agreement (SLA),
  • Provision of Power backup of adequate level at GPs and Blocks,
  • Provision of Remote Fibre Monitoring System (RFMS) at Block for fibre monitoring.

Digital Bharat Nidhi (DBN)

• DBN is a fund that aims to improve the quality and accessibility of telecommunications services in India.
• It was established by the government of India as a replacement for the Universal Service Obligation Fund (USOF).

Working of BharatNet

• Bharat Broadband Network Limited (BBNL), a Special Purpose Vehicle (SPV) was incorporated in 2012 for the execution of the project.
• In 2016, the Telecom Commission approved to implement the project in three phases:
  • Phase I: Focused on laying optical fiber cables to connect 1 lakh Gram Panchayats by utilizing existing infrastructure.
  • Phase II: Expanded the coverage to an additional 1.5 lakh Gram Panchayats using optical fiber, radio, and satellite technologies.
  • Phase III: Aims at future-proofing the network by integrating 5G technologies, increasing bandwidth capacity, and ensuring robust last-mile connectivity. This phase is ongoing, with a focus on improving accessibility and reliability.

Impact of BharatNet

• Digital Inclusion: The project has connected remote villages to high-speed internet, enabling access to e-governance services, online education, and telemedicine.
  • Initiatives like the Digital India program thrive on BharatNet’s infrastructure.
• Economic Opportunities: With internet access, rural communities can participate in digital commerce, access financial services, and explore entrepreneurial opportunities.
• Education and Healthcare: BharatNet has enabled digital classrooms and telehealth services, bridging the resource gap in rural areas.
• Empowering Local Governance: Gram Panchayats use BharatNet to implement e-governance projects, improving transparency, efficiency, and citizen engagement in public services.

Conclusion

• BharatNet holds the promise of transforming rural India into a digitally empowered society. It is a lifeline for millions of rural Indians aspiring to connect with opportunities beyond their immediate surroundings.
• With robust execution and sustained efforts, BharatNet will continue to bridge the digital divide and empower every corner of India with the transformative power of the internet.

General Studies Paper -3

Context: The Union Minister for Environment, Forest and Climate Change, released the India State of Forest Report 2023 (ISFR 2023) at Forest Research Institute, Dehradun.

About

• It is published every two years by the Forest Survey of India under the Ministry of Environment, Forests and Climate Change.
  • The first survey was published in 1987, and ISFR 2023 is the 18th such report in the series.
• The report contains information on forest cover, tree cover, mangrove cover, growing stock, carbon stock in India’s forests, instances of forest fire, Agroforestry, etc.

Major Findings of ISFR 2023

• The Forest and Tree cover of the country is 8,27,357 sq km which is 25.17 percent of the geographical area of the country, consisting of 7,15,343 sq km (21.76%) as forest cover and 1,12,014 sq km (3.41%) as tree cover.
• 19 states/UTs have above 33 percent of the geographical area under forest cover.
  • Out of these, eight states/UTs namely Mizoram, Lakshadweep, A & N Island, Arunachal Pradesh, Nagaland, Meghalaya, Tripura, and Manipur have forest cover above 75 percent.
• There is an increase of 1445 sq km in the forest and tree cover of the country which includes 156 sq km increase in the forest cover and 1289 sq km increase in tree cover.
  • Top four states showing maximum increase in forest and tree cover: Chhattisgarh, Uttar Pradesh, Odisha and Rajasthan.
  • Top three states showing maximum increase in forest cover: Mizoram, Gujarat and Odisha.
  • Area wise top three states having largest forest and tree cover: Madhya Pradesh, Arunachal Pradesh, and Maharashtra.
  • Area wise top three states having largest forest cover: Madhya Pradesh , Arunachal Pradesh and Chhattisgarh.
• In terms of percentage of forest cover with respect to total geographical area, Lakshadweep (91.33 percent) has the highest forest cover followed by Mizoram (85.34 percent) and Andaman & Nicobar Island (81.62 percent).
• The total annual potential production of timber from trees outside forest has been estimated as 91.51 million cum.

Achievements

• The extent of bamboo bearing area for the country has been estimated as 1,54,670sq km.
  • As compared to the last assessment done in 2021 there is an increase of 5,227 sq km in bamboo area.
• The total carbon stock in the country’s forest is estimated to be 7,285.5 million tonnes.
  • There is an increase of 81.5 million tonnes in the carbon stock of the country as compared to the last assessment.

Concern

• India’s mangrove cover has decreased. It is now 4,991.68 sq km, a decrease of 7.43 sq km.
• Gujarat, has lost the highest area under mangroves, when compared to the last assessment – 36.39 sq km.

General Studies Paper -2

Context: Prime Minister Modi paid an official visit to Kuwait marking a historic moment in India-Kuwait relations.

The last Indian prime minister to visit Kuwait was Indira Gandhi in 1981.

Key Highlights

• Strategic Partnership: India and Kuwait agreed to elevate their relationship to a Strategic Partnership, enhancing cooperation across multiple sectors.
• A Memorandum of Understanding (MoU) in the field of defense was signed, aiming to strengthen ties through joint military exercises, training, coastal defense, and maritime safety.
• Both the nations signed the Executive Program on Cooperation in the Field of Sports for 2025-2028.
  • It will strengthen cooperation in the area of sports.
• Both the nations signed the Cultural Exchange Programme (CEP) for the years 2025-29.
• PM Modi was conferred with the the highest award of the State of Kuwait ‘The Order of Mubarak Al Kabeer’.

India-Kuwait Relations in Brief

• Political Relations: India was one of the first countries to establish diplomatic relations with Kuwait following its independence from the British Protectorate in 1961.
  • Recently a Joint Commission on Cooperation (JCC) was established between India and Kuwait, to review and monitor the entire spectrum of the bilateral relations between the two countries.
• Energy Partnership: Kuwait is a significant energy partner, serving as India’s sixth-largest crude oil supplier and fourth-largest LPG supplier.
  • It holds approximately 6.5% of global oil reserves, underlining its strategic role in India’s energy security.
• Indian Community: Indians constitute 21 per cent (1 million) of the total population of Kuwait and 30 per cent of its workforce (approximately 9 lakh).
  • Indian workers top the private sector as well as the domestic sector workforce list.
• Trade relations: Kuwait remains one of India’s top trading partners, with bilateral trade valued at $10.47 billion in the financial year 2023-24.
• Medical Cooperation: An MoU on Medical Cooperation was signed in 2012, with a Joint Working Group set up to review progress.
  • During the COVID-19 pandemic, Kuwait supplied over 425 metric tons of liquid medical oxygen, oxygen concentrators, ventilators etc.

Way Ahead

• The India-Kuwait trade partnership can be further bolstered by the early conclusion of the India-GCC Free Trade Agreement, expanding trade in technology, agriculture, and manufacturing, while improving trade facilitation.
• Both countries should work together on UN reforms, including expanding the Security Council’s membership to make it more representative and effective.

Building on Kuwait’s role in India’s energy security, both nations should explore renewable energy partnerships, particularly in solar energy, leveraging Kuwait’s membership in the International Solar Alliance (ISA).

General Studies Paper -2

Context: Recently, the Reserve Bank of India (RBI) released a comprehensive report on municipal finances that emphasizes the growing demand for high-quality public services in urban areas, driven by rapid urbanization.

Despite this, municipal corporations (MCs) in India generate limited revenues and rely heavily on upper tiers of government for funding, limiting their operational flexibility.

Benefits of Robust Municipal Corporations (MCs) in India

• Enhanced Public Services such as clean drinking water, sanitation, waste management, and public health facilities.
• It leads to improved living standards and better quality of life for urban residents.
• Efficient Infrastructure Development including roads, bridges, public transportation, and parks.
• Efficient infrastructure development enhances connectivity, reduces traffic congestion, and promotes sustainable urban growth.
• Economic Growth and Job Creation: By creating a conducive environment for businesses and industries, robust MCs contribute to economic growth and job creation.
• Well-maintained infrastructure and efficient public services attract investments and foster entrepreneurship, leading to increased employment opportunities.
• Environmental Sustainability through initiatives such as waste management, pollution control, and green spaces.
• These efforts help in reducing the environmental impact of urbanization and improving the overall quality of the urban environment.
• Democratic Governance by providing a platform for citizen participation in decision-making processes.
• Regular elections and transparent administrative practices empower residents to have a say in the development and management of their cities.
• Social Equity by ensuring that all sections of society have access to essential services and opportunities.
• Programs aimed at improving education, healthcare, and housing for marginalized communities help in reducing social disparities and promoting inclusive growth.

Current Fiscal Challenges With Municipal Corporation

• Inadequate Revenue Generation: According to recent reports, municipal revenues constitute a mere 0.6% of India’s GDP in 2023-24, despite urban areas contributing nearly 60% to the nation’s economic output.
  • Poor property tax revenues, which account for only 0.12% of GDP, exacerbate this issue.
  • For instance, state transfers account for 30% of municipal revenues, while Union transfers contribute just 2.5%.
• Dependence on Government Grants: More than 50% of municipal corporations generate less than half their revenue independently, while government transfers rose by over 20% in 2022–23.
  • The concentration of revenue generation among a few large municipal corporations further exacerbates the issue, with the top ten MCs accounting for over 58% of total municipal revenues.
• Inefficiency in Tax and Fee Collection: The inefficiency in property tax systems and the inadequately adjusted user fees for essential services like water supply and sanitation affect cost recovery.
  • It leads to a lack of funds for maintaining and improving infrastructure and services.
• Revenue Concentration: Over 58% of municipal revenue is generated by the top 10 municipal corporations, leaving smaller and less affluent ULBs struggling to meet their financial obligations.
• Fiscal Decentralization: The devolution of financial powers to ULBs has been inadequate.
  • The quantum and predictability of funds transferred from state and central governments are often insufficient, leading to financial instability for ULBs.
• Transparency and Accountability: The absence of robust performance measurement and audit mechanisms makes it difficult to assess the financial health and service delivery of municipal corporations.

Strategic Recommendations for Financial Improvement

• Own Sources of Revenue Generation:Property taxes are the major constituent of tax revenues for MCs, but the collection efficiency is low.
• The report suggests adopting technologies like GIS-based property tax mapping and digital platforms for tax collection to improve compliance and plug revenue leakages.
• Non-tax revenues have also contributed to the recovery of municipal revenues, but there is still a need for better enforcement and augmentation of institutional capacity.
• Borrowing and Municipal Bond Financing: Municipal bond financing has seen some recovery, with MCs venturing into green municipal bonds to fund environmentally beneficial projects.
  • However, the reliance on transfers and grants from upper tiers of government continues, affecting the functional and financial autonomy of MCs.
• Promoting Fiscal Decentralization: Strengthening State Finance Commissions (SFCs) and establishing frameworks to estimate expenditure obligations and funding mix can enhance fiscal decentralization.
  • Clear rule-based frameworks for state and central transfers can ensure predictable compensation for ULBs.
• Improving Transparency and Accountability: Enforcing public disclosure laws and promoting citizen participation in budgeting and financial decision-making can enhance transparency and accountability.
  • Participatory budgeting and community involvement can help build trust and ensure that funds are used effectively.
  • Supporting Development Initiatives such as the Smart Cities Mission and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) that aim to improve infrastructure, enhance service delivery, and promote sustainable urban development.
  • Reducing Dependence on Transfers: Clearly defining rule-based frameworks for state and central transfers to ensure predictable compensation.

Conclusion and Way Forward

• Municipal fiscal reforms are essential for ensuring financial sustainability and accountability in urban governance.
• By addressing the challenges in revenue generation and enhancing participatory governance, India can build a more resilient and efficient municipal system.
• The success of these reforms will not only improve service delivery but also contribute to the overall development of urban areas.