General Studies Paper -3

Context: Agriculture remains the backbone of India’s economy, employing nearly 45% of the workforce and contributing about 16% to the nation’s GDP.

• Recognizing its pivotal role, India has implemented several initiatives to strengthen this sector.

About the Agriculture Sector in India

• Agriculture serves as the backbone of India’s economy, playing a pivotal role in ensuring food security, providing employment, and contributing to overall economic development.
• It is envisioned as one of the four engines of development (others are MSMEs, Investments, and Exports) in the recently announced Union Budget of 2025-26.
• These engines are aimed at driving sustainable growth and achieving the vision of a ‘Viksit Bharat’ (Developed India) by 2047.

Key Farmer-Centric Initiatives To Strengthen India’s Agriculture Sector

• The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme has disbursed ₹46 lakh crore, while the Pradhan Mantri Fasal Bima Yojana (PMFBY) has provided ₹1.65 lakh crore in claims.
• The Agricultural Infrastructure Fund (AIF) has sanctioned ₹52,738 crore for over 87,500 projects to improve post-harvest management.
• Minimum Support Price (MSP) Enhancements: The MSP for paddy has risen from ₹850 per quintal in 2008-09 to ₹2,300 per quintal in 2023-24, while the MSP for wheat has increased from ₹1,080 per quintal to ₹2,425 per quintal during the same period.
• e-NAM: Integration of 1410 Mandis with e-NAM since inception across 23 States & 4 UTs.
• As on 31st December 2024, 1.79 Crore farmers & 2.63 lakh traders have been registered on e-NAM portal.
• Millets (Superfood of India): Millet production has increased in the last 1 year, reaching 175.72 lakh tonnes in 2023-24 (Final Estimate) from 173.21 lakh tonnes in 2022-23.
• Productivity has increased by 7% from 1248 Kg/ha to 1337 Kg/ha between 2019 and 2024 (Final Estimate).

Promoting Sustainable Practices: Initiatives like the promotion of millet production and the establishment of a second Gene Bank to safeguard genetic resources for future food security are steps in the right direction.

Kye Focus Area in Union Budget 2025-26

• Prime Minister Dhan-Dhaanya Krishi Yojana: For developing agri districts programme, covering 100 districts with low productivity, moderate crop intensity and below-average credit parameters, to benefit 1.7 crore farmers.
• Building Rural Prosperity and Resilience: To address under-employment in agriculture through skilling, investment, technology, and invigorating the rural economy.
  • Phase-1 to cover 100 developing agri-districts.
• Aatmanirbharta in Pulses: Government to launch a 6-year ‘Mission for Aatmanirbharta in Pulses’ with focus on Tur, Urad and Masoor.
  • NAFED and NCCF to procure these pulses from farmers during the next 4 years.
• Comprehensive Programme for Vegetables & Fruits: To promote production, efficient supplies, processing, and remunerative prices for farmers to be launched in partnership with states.
• Makhana Board in Bihar: To improve production, processing, value addition, and marketing of makhana.
• National Mission on High Yielding Seeds: To strengthen the research ecosystem, targeted development and propagation of seeds with high yield, and commercial availability of more than 100 seed varieties.
• Fisheries: For sustainable harnessing of fisheries from the Indian Exclusive Economic Zone and High Seas, with a special focus on the Andaman & Nicobar and Lakshadweep Islands.
• Mission for Cotton Productivity: A 5-year mission announced to facilitate significant improvements in productivity and sustainability of cotton farming, and promote extra-long staple cotton varieties.
• Enhanced Credit through KCC: The loan limit under the Modified Interest Subvention Scheme to be enhanced from ₹ 3 lakh to ₹ 5 lakh for loans taken through the KCC.
• Urea Plant in Assam: A plant with annual capacity of 12.7 lakh metric tons to be set up at Namrup, Assam.

Key Concerns/Challenges & Related Suggestions (Post the Union Budget 2025-26)

• Implementation of New Schemes: While the budget introduced several new schemes like the Prime Minister Dhan-Dhaanya Krishi Yojana and the Mission for Aatmanirbharta in Pulses, the effective implementation of these programs remains a challenge.
  • Ensuring that the benefits reach the intended beneficiaries and addressing any bureaucratic hurdles will be crucial.
• Access to Quality Seeds and Technology: Despite efforts to enhance access to quality seeds and modern technology, many farmers still face difficulties in obtaining these resources.
  • The adoption of high-yielding, climate-resilient crop varieties needs to be accelerated to improve productivity.
• Infrastructure and Storage: Improving post-harvest infrastructure and storage facilities is essential to reduce wastage and ensure better prices for farmers.
  • The budget has allocated funds for this purpose, but timely and efficient execution is necessary.
• Credit Availability: While the budget has raised the Kisan Credit Card (KCC) loan limit, ensuring that farmers have easy access to credit without cumbersome procedures is vital.
  • Financial literacy and awareness among farmers about available schemes can also help in this regard.
• Market Access and Fair Pricing: Farmers often struggle with getting fair prices for their produce due to market inefficiencies and lack of direct access to markets.
  • Strengthening market linkages and promoting farmer producer organizations (FPOs) can help address this issue.
• Climate Change and Sustainability: With changing weather patterns, adopting sustainable agricultural practices becomes imperative.
  • The budget’s focus on climate-resilient crops and practices is a step in the right direction, but continuous support and education for farmers are needed.

Conclusion

• Strengthening India’s agricultural backbone is crucial for the country’s socio-economic development.
• By implementing farmer-centric initiatives, enhancing budget allocations, and promoting sustainable practices, the government is working towards ensuring food security, providing employment, and boosting overall economic growth.

General Studies Paper -2

Context: Union Finance Minister Nirmala Sitharaman announced an extension of the Jal Jeevan Mission (JJM) till 2028, with an outlay of Rs 67,000 crore in the Union Budget 2025-26.

However, the scheme saw a massive cut in allocation at the revised estimate (RE) stage during the current fiscal year 2024-25.

About

• The Jal Jeevan Mission (JJM), launched in 2019, aimed to provide Functional Household Tap Connections (FHTC), ensuring 55 litres per capita per day of safe drinking water to all rural households by 2024. However, due to implementation challenges, the deadline has now been extended to 2028.
• The focus now shifts towards quality infrastructure, sustainable operation, and community-led management under the principle of “Jan Bhagidari” (people’s participation).

Key Features of JJM

• Objectives & Implementation Strategy:
  • Universal Piped Water Access: Ensuring every rural household receives tap water by 2028.
  • Community Involvement: Village Water & Sanitation Committees (VWSCs) or Pani Samitis play a key role, with 50% mandatory participation from women.
  • State Participation: States/UTs sign agreements to ensure sustainability and service quality.
• Administrative Framework:
  • Nodal Ministry: Department of Drinking Water and Sanitation, Ministry of Jal Shakti.
  • Background: JJM subsumed the National Rural Drinking Water Programme (NRDWP).
• Funding Pattern:
  • 90:10 for Himalayan and North-Eastern States.
  • 100% Central Funding for Union Territories.
  • 50:50 for other States.

Current Progress & Budgetary Allocations

• Achievements Since 2019:
  • 80% of rural households now have piped water access, up from 15% in 2019.
  • Over 12 crore families have gained access to drinking water.
  • States with 100% Coverage: Arunachal Pradesh, Goa, Haryana, Himachal Pradesh, Gujarat, Punjab, Telangana, and Mizoram.
  • UTs with 100% Coverage: Andaman & Nicobar Islands, Dadra & Nagar Haveli & Daman & Diu, and Puducherry.

Challenges in Implementation

• Infrastructure & Connectivity Issues:
  • Initial “Low-Hanging Fruit” Approach: Coverage was quickly expanded in regions with existing infrastructure, but expanding to remote villages has proven difficult.
  • Reservoir-to-Village Pipelines: Many villages require water transportation from distant reservoirs, increasing costs and logistical complexity.
• Cost Overruns Due to External Factors:
  • COVID-19 Impact: Disruptions in supply chains and labor availability.
  • Russia-Ukraine War: Equipment and material costs surged, straining budgets.
• Implementation Bottlenecks:
  • Underutilization of Funds: Despite budget allocations, ₹50,000 crore remained unspent in 2024-25, highlighting execution inefficiencies.

Road Ahead

• Strengthening Last-Mile Connectivity: Prioritizing infrastructure expansion in remote areas.
  • Upgrading reservoir pumping systems and ensuring adequate groundwater sources.
• Improving Budget Utilization: Enhancing state-level execution capacity to ensure timely use of allocated funds.
  • Flexible funding mechanisms to accommodate price fluctuations.
• Ensuring Transparency & Accountability: Implementing independent verification mechanisms to validate actual water supply in rural households.
  • Leveraging technology (IoT-based monitoring, GIS mapping) for real-time tracking.
• State & Centre Coordination: Ensuring states fulfill their funding responsibilities to avoid delays.
  • Stronger agreements between the Centre and states for smooth implementation.
• Community Engagement & Women’s Participation: Expanding “Jan Bhagidari” (people’s participation) to ensure local ownership of water management.
  • Increasing women’s leadership roles in Pani Samitis.

General Studies Paper -3

Context: Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman presented the Economic Survey 2024-25 in the Parliament.

About Economic Survey

• The Economic Survey is a comprehensive review of the country’s current economic state and future outlook.
• It is prepared by the Economic Division of the Department of Economic Affairs under the guidance of the Chief Economic Advisor.

Major Highlights

• State of the Economy: India’s real GDP growth estimated at 6.4% in FY25, aligning with its decadal average.
  • Global GDP grew 3.3% in 2023, slightly higher than IMF’s 3.2% forecast for the next five years.
  • FY26 GDP growth expected between 6.3% and 6.8%.
  • Retail inflation reduced to 4.9% in FY25 (April-Dec).
  • Capital expenditure (CAPEX) grew 8.2% YoY post-general elections in 2024.
  • India’s share in global services exports is 7th largest.
• Monetary and Financial Sector Developments: Bank credit grew steadily; asset quality and profitability improved.
  • Gross non-performing assets (GNPAs) at a 12-year low (2.6% of gross loans).
  • ₹3.6 lakh crore realized from 1,068 insolvency resolutions.

• • India’s stock markets outperformed emerging market peers.
  • Resource mobilization from primary markets reached ₹1 lakh crore in FY25.
  • Insurance premiums grew by 7.7%, and pension sector subscribers rose 16%.
• External Sector: Exports grew by 6%, with the services sector up 11.6% (April-Dec FY25).
  • India ranked 2nd in global telecommunications, computer & information services exports.
  • FDI inflows increased by 17.9% YoY to USD 55.6 billion in FY25.
  • Forex reserves stood at USD 640.3 billion, covering 10.9 months of imports.
• Prices and Inflation: Global inflation moderated to 5.7% in 2024.
  • India’s retail inflation reduced to 4.9% in FY25.
  • RBI and IMF project inflation will align to around 4% by FY26.
• Medium-Term Outlook: India aims for 8% growth to achieve ‘Viksit Bharat’ by 2047.
  • Focus on deregulation to empower growth and ease of doing business, particularly for SMEs.
• Investment and Infrastructure: Government capital expenditure grew by 38.8% from FY20 to FY24.
  • 5853 km of National Highways constructed in FY25 (Apr-Dec).
  • Renewable energy capacity grew by 15.8% YoY by Dec 2024.
  • Significant infrastructure projects, including metro expansion and electricity access for rural areas.
• Industry : Industrial growth projected at 6.2% in FY25, driven by electricity and construction.
  • Automobile sales up by 12.5% in FY24.
  • India ranks 6th in global patent filings.
  • The MSME sector is growing, with initiatives like the Self-Reliant India Fund.
• Services : Services sector contribution to GVA increased to 55.3% in FY25.
  • Services exports grew by 12.8% in FY25 (Apr-Nov).
  • Indian Railways and tourism sector show strong growth.
• Agriculture and Food Management: Agriculture contributes 16% to GDP in FY24.
  • Kharif foodgrain production is expected to rise by 89.37 LMT in FY24.
  • Fisheries and livestock sectors show strong growth.
  • MSP increases for Arhar and Bajra by 59% and 77%, respectively.
• Climate & Environment: India’s non-fossil fuel power generation capacity reached 46.8% of total capacity.
  • LiFE initiative to drive sustainable living, with potential global savings of USD 440 billion by 2030.
  • India’s carbon sink increased by 2.29 billion tonnes CO2 equivalent.
• Social Sector : Social services expenditure grew at 15% CAGR from FY21 to FY25.
  • Decline in income inequality, with improvements in rural and urban Gini coefficients.
  • Government health expenditure up from 29% to 48%, reducing out-of-pocket expenses.
  • Ayushman Bharat has saved over ₹25 lakh crore.
• Employment and Skill Development: Unemployment rate declined to 3.2% in FY24.
  • Government initiatives supporting women entrepreneurship, including credit and skill development.
  • Emerging sectors like the digital economy and renewable energy provide job opportunities.
  • EPFO payroll additions doubled in the last six years.
• Labour in the AI Era: AI expected to surpass human performance in key sectors but faces barriers like reliability and infrastructure.
  • India’s young, tech-savvy population is poised to leverage AI for enhanced productivity.
  • Collaboration between government, private sector, and academia is crucial to manage AI’s societal impact.

Issues and Concerns

• Global challenges like trade tensions and rising commodity prices may still affect growth.
• Investment growth has slowed, with government and private sector capital expenditure weak, partly due to elections and global uncertainties.
• This poses a challenge for economic expansion.
• Challenges faced by Micro, Small, and Medium Enterprises (MSMEs), including regulatory burdens that hinder formalization, productivity, and innovation.
• Employment has grown, particularly for women in agriculture, but wages have declined.
• Many new jobs are low-skill, which limits overall economic progress.
• The services sector faces challenges from AI and skill gaps, with most workers having lower education levels and limited competencies.
• Upskilling is crucial for future growth.
• The textiles sector, a key driver of employment, faces challenges in competitiveness, particularly compared to nations like China and Vietnam.
• Simplifying export processes could enhance efficiency.

Conclusion and Way Forward

• India is on a steady growth path, while globalisation is slowing down. This change brings both challenges and new opportunities. To keep growing, India must focus on economic reforms and take advantage of its young workforce.
• The Survey emphasizes the need for strategic investments, deregulation, and skill development to unlock India’s growth potential and achieve its long-term economic goals

General Studies Paper -3

Context: The recent Economic Survey 2024-25 highlights a major global economic transition: the backsliding of globalization and the rise of geo-economic fragmentation.

• The past few decades saw increasing global trade, investments, and economic interdependence, the next era is expected to witness trade restrictions, economic realignments, and shifting supply chains.

In the Era of Globalization: 1980-2022

The following developments were largely driven by open markets, rapid technological advancements, and cross-border investments, leading to efficiency and economic growth.

• Demographic and Urbanization Growth: The world’s population grew from 4.4 billion in 1980 to 8 billion in 2022, with urbanization rising from 39% to 57%, driving global connectivity.
• Trade Expansion: Global trade as a share of GDP rose from 39% in 1980 to 60% by 2012, reflecting deeper market integration.
• Surge in FDI: Foreign Direct Investment (FDI) inflows grew from $54 billion in 1980 to over $1.5 trillion in 2019.
• Overall Economic Growth: The world economy expanded from $11 trillion in 1980 to over $100 trillion in 2022.

The Rise of Geo-Economic Fragmentation

Geo-economic fragmentation refers to a policy-driven reversal of global economic integration, guided by strategic and geopolitical considerations. This shift is characterized by:

• Trade restrictions and tariffs impacting cross-border commerce.
• Capital flow restrictions disrupting global investment patterns.
• Reorganization of supply chains due to shifting geopolitical alliances.
• Rising protectionism as countries prioritize domestic economic resilience.

Factors Driving Fragmentation

• Geopolitical Tensions: The re-emergence of Cold War-style economic blocs and “friend-shoring.” For example: China’s expansionism, Ukraine-Russia war, Middle East disruptions.
  • Conflicts and security concerns reshaping trade relationships.
• Increased Trade Barriers: Trade-restrictive measures have surged, with WTO data showing that trade covered by new restrictions rose from $337.1 billion in 2023 to $887.7 billion in 2024.
• Technological Decoupling: Nations are imposing controls on semiconductors, AI, and critical technologies, leading to fragmented innovation ecosystems.
• Environmental and Social Standards: Western nations imposing one-size-fits-all labor and emission standards are contributing to global economic divisions.

Impact of Geo-Economic Fragmentation

• Trade Disruptions & Protectionism: Global trade growth has slowed down significantly, reflecting a secular stagnation in the world economy.
  • Between 2020 and 2024, over 24,000 trade and investment restrictions were imposed globally.
  • The IMF warns that today’s trade fragmentation is far costlier than during the Cold War, as goods trade-to-GDP ratios have risen from 16% to 45%.
  • Reduced knowledge diffusion due to limited cross-border exchanges hampers innovation and productivity.
• FDI Relocation & Investment Realignment: Global FDI flows are now concentrated among geopolitical allies.
  • Emerging markets face greater vulnerability, as they rely on FDI from advanced economies.
  • Friend-shoring and reshoring of investments to allied nations create uneven economic opportunities.
• China’s Strategic Economic Dominance: China has gained a strategic upper hand in global supply chains, leveraging its manufacturing prowess and resource control:
• Electric Vehicles (EVs): Disrupting traditional players like Germany and Japan.
• Critical Minerals: Controls the global supply of lithium, cobalt, nickel, graphite.
• Renewable Energy: Produces 80% of battery components, 60% of wind turbines, and 80% of solar PV components.
• Rare Earth Processing: Processes 70% of the world’s rare earth minerals, vital for batteries, electronics, and defense.
• Outsourcing Reset: The world’s prior strategy of manufacturing dependence on China is now under reconsideration.

India’s Response: Amplifying Deregulation & Economic Freedom

As global markets become more restrictive, India must turn inwards and strengthen domestic economic engines. A pro-business regulatory environment can:

• Lower business compliance costs, boosting ease of doing business.
• Enable SMEs to drive employment and innovation.
• Make India a global manufacturing hub by attracting capital and technology.
• Improve resilience to external shocks by strengthening internal supply chains.

Path Forward: Deregulation & Economic Reforms

• Accelerating Deregulation: Removing unnecessary licensing, inspection, and compliance burdens on businesses.
• State-Level Best Practices: Encouraging states to adopt pro-growth policies from top-performing regions.
• SME Empowerment: Supporting small and medium enterprises to expand globally.
• Trade & Investment Policies: Despite global fragmentation, India must proactively engage in exports and foreign investments.
• Balancing Regulation with Freedom: Striking the right balance to unleash entrepreneurial potential and enhance competitiveness.

Conclusion: A New Global Economic Order

• The Economic Survey 2024-25 underscores a critical shift: globalization is retreating, and economic fragmentation is on the rise. Trade restrictions, shifting FDI flows, and China’s strategic dominance are shaping a new world order. In response, India must double down on deregulation, empower SMEs, and create an investment-friendly climate to position itself as a leading economic powerhouse.

General Studies Paper -3

Context: The Indian Space Research Organisation (ISRO) launched its historic 100th launch from the Satish Dhawan Space Centre in Sriharikota.

About

• GSLV F15 carried the NVS-02 navigation satellite placing it into a Geosynchronous Transfer Orbit.
• The NVS-02 is the second satellite in the NVS series, and part of India’s Navigation with Indian Constellation (NavIC).
• It is designed to provide accurate positioning services across India.
• GSLV-F15 is the 17th flight of India’s Geosynchronous Satellite Launch Vehicle (GSLV) and 11th flight with Indigenous Cryo stage.
• Over these 100 launches ISRO has lifted 548 satellites to orbit.

NVS Series

• These are five second-generation NavIC satellites — NVS-01 to NVS-05 and are planned to enhance the existing constellation.
• These satellites incorporate L1 band communication, which broadens NavIC’s compatibility and usability for diverse applications.
• NVS-01, the first of the second-generation satellites, was launched in 2023.
• For the first time, an indigenous atomic clock was flown in NVS-01.
• NVS-02 will help improve NavIC’s services, which are used for navigation, precision agriculture, emergency services, fleet management, and even mobile device location services.
• It also has a precise atomic clock called the Rubidium Atomic Frequency Standard (RAFS) for accurate timekeeping.

NavIC

• It is a regional navigation satellite system established by Indian Space Research Organisation (ISRO).
• NavIC was erstwhile known as Indian Regional Navigation Satellite System (IRNSS).
• NavIC is designed with a constellation of 7 satellites and a network of ground stations operating 24 x 7.
• Three satellites of the constellation are placed in geostationary orbit and four satellites are placed in inclined geosynchronous orbit.
• The ground network consists of a control centre, precise timing facility, range and integrity monitoring stations, two-way ranging stations, etc.
• NavIC offers two services: Standard Position Service (SPS) for civilian users and Restricted Service (RS) for strategic users.
• It provides location accuracy better than 20 meters and timing accuracy better than 40 nanoseconds across the core service area.
• The NavIC coverage area includes India and a region up to 1,500 kmbeyond the Indian boundary.
• NavIC SPS signals are interoperable with the other global navigation satellite system (GNSS) signals namely GPS, Glonass, Galileo and BeiDou.

Significance

• The first batch of IRNSS satellites launched in the previous decades has been successful in establishing the Personal Navigation Device (PND) services in the country.
• The NVS series is the second generation of these satellites that are progressively being deployed to further strengthen the PND ecosystem in the nation.
• NVS supports various applications, including strategic uses, vessel tracking, time synchronization, train tracking, and life safety alerts.

General Studies Paper -3

Context: The Economic Survey 2024-25 called for the creation of “robust institutions,” which could help transition workers to medium- and high-skilled jobs, where AI can augment their efforts rather than replace them.

Major Highlights

• The future of work revolves around ‘Augmented Intelligence’, where the workforce integrates both human and machine capabilities.
  • By leveraging its young, dynamic, and tech-savvy population, India has the potential to create a workforce that can utilize AI to augment their work and productivity.
• Raising the Quality: India‘s employment challenge is not of numbers, but also of raising the overall quality of its workforce.
• Service-oriented Economy: India’s economy is heavily service-oriented, with a significant portion of its IT workforce engaged in low-value-added services.
  • These roles are particularly susceptible to automation, and a large segment of the population relies on these jobs for their livelihoods.
  • The challenge lies in ensuring that the benefits of AI do not come at the expense of the workforce, particularly those in vulnerable positions.

Measures to be Taken

• The survey identifies three types of institutions essential for this transition: Enabling Institutions, Insuring Institutions, and Stewarding Institutions.
• These entities will help upskill the workforce, preparing them for medium- and high-skill jobs where AI can enhance their capabilities rather than replace them.
• Social Infrastructure encompassing Enabling Institutions,
• Insuring Institutions and Stewarding Institutions to help graduate workforce towards medium-and high-skill jobs.
• India will therefore have to fast track the creation of robust institutions through a tripartite compact between the government, private sector and academia.

Challenges

• Practicality and reliability are core issues that need to be addressed by developers.
• AI also needs significant infrastructure for scaling, which takes time to build.
• AI models have to target efficiency gains without compromising on performance.

Suggestions

• Policymakers must balance innovation with societal costs, as AI driven shifts in the labour market could have lasting effects.
• The corporate sector also must act responsibly, handling the introduction of AI with sensitivity to India‘s needs.
• A collaborative effort between government, private sector, and academia is essential.

The Way Ahead

• AI, currently in its early stages, provides India with the opportunity to tackle challenges, strengthen its foundations, and mobilize a nationwide institutional response.
• The country’s predominantly services-driven economy, coupled with its young and dynamic population, offers a fertile ground for leveraging the benefits of emerging technologies.
• As India stands on the brink of an AI revolution, the Economic Survey urges policymakers to strike a balance between fostering innovation and addressing societal costs.

General Studies Paper -3

Context: Recently, the Union Minister for New and Renewable Energy announced that the PM Surya Ghar scheme has achieved a milestone with 8.5 lakh households (about 8.5%) installing rooftop solar connections.

About:

• It is a centrally sponsored scheme aimed at providing free electricity to households by subsidizing the installation of rooftop solar panels.
• Launch & Ministry: February 15, 2024 by the Ministry for New and Renewable Energy (MNRE).
• Aim: Provide up to 300 units of free electricity per month to one crore households.
• Lower electricity expenses for both households and the government.
• Increase the share of renewable energy in India’s energy mix.
• Reduce carbon emissions and promote sustainable development.
• Key Features:
  • Subsidies and Incentives: The scheme provides for a subsidy of 60% of the solar unit cost for systems up to 2kW capacity and 40 percent of additional system cost for systems between 2 to 3kW capacity. The subsidy has been capped at 3kW capacity. At current benchmark prices, this will mean Rs 30,000 subsidy for 1kW system, Rs 60,000 for 2kW systems and Rs 78,000 for 3kW systems or higher.
  • Target: By March 2025: To exceed 10 lakh,
    • By October 2025: Doubling reaching 20 lakh,
    • March 2027: 1 crore households.
  • Eligibility: The household must:
    • Be an Indian citizen;
    • Own a house with a roof that is suitable for installing solar panels;
    • Have a valid electricity connection;
    • Not have availed any other subsidy for solar panels.
  • Financial Outlay: ₹75,021 crore, with ₹65,700 crore allocated for Central Financial Assistance (CFA) to residential consumers.
  • DISCOMs Incentive: DISCOMs, designated as State Implementation Agencies (SIAs), are rewarded with incentives based on their performance in surpassing the baseline level of rooftop solar capacity installation.
  • Expected Savings: Estimated to save the government ₹75,000 crore annually in electricity costs.
  • Other features of the scheme:
  • Model Solar Village: It will be developed in each district of the country to act as a role model for adoption of rooftop solar in rural areas.

Potential Benefits

• Energy Independence: By enabling households to generate their own electricity, the scheme reduces dependence on the national grid.
• Cost Savings for Consumers: With savings of up to ₹18,000 annually, the scheme directly benefits middle and lower-income households.
• Reduction in Peak Load Demand: With more households using solar energy, electricity demand during peak hours can be reduced, easing the burden on DISCOMs.
• Boost to Solar Industry: The scheme will drive demand for solar panels, benefiting manufacturers and installers.
  • Strengthens India’s Energy Independence: Supports India’s vision of achieving self-reliance in the energy sector.

Challenges

• Slow Installations: Only 8.5 lakh of 1 crore target met so far.
• Infrastructure Issues: Efficient grid integration is required for solar adoption.
• Financial Accessibility: Upfront costs remain a barrier despite subsidies.
• DISCOM Support: Distribution companies play a vital role in execution, but delays persist.
• Public Awareness: Wider outreach is needed for rural and urban adoption.

Future Outlook

• MNRE aims to cover 12 lakh households in the financial year 2024-2025.
• Additionally, India is set to add 50 GW of new renewable capacity annually in the coming years, with the tariff for grid-connected solar power plants decreasing significantly over the past decade.

General Studies Paper -2

Context: In a significant development,  India and China have announced the resumption of the Kailash Mansarovar Yatra this summer, coinciding with the 75th anniversary of their diplomatic ties.

Historical Overview of India-China Relations

• Early Diplomatic Engagements: India was among the first countries to recognize the People’s Republic of China in 1950, formally establishing diplomatic ties on April 1, 1950.
  • It was initially characterized by mutual goodwill, embodied in the slogan ‘Hindi-Chini Bhai Bhai’ (India and China are brothers).
• Key Milestones in Bilateral Relations:
  • Panchsheel Agreement (1954): The five principles of peaceful coexistence laid a foundation for diplomatic engagement.
  • Sino-Indian War (1962): This conflict over border disputes severely damaged relations.
  • Normalization Efforts (1988-1993): Prime Minister Rajiv Gandhi’s 1988 visit to China marked a thaw, leading to agreements on peace and tranquility along the border.
  • Bilateral Trade Boom (2000s): Economic engagement surged, making China one of India’s largest trading partners.
  • Border Clashes and Standoffs (2017 & 2020): The Doklam standoff (2017) and Galwan Valley clashes (2020) created fresh tensions.
  • Recent Diplomatic Talks (2023-2024): Efforts have been made to manage differences through diplomatic channels.

Recent Developments and Diplomatic Exchanges (75th Anniversary)

• Foreign Secretary’s Visit to China (2025):
  • Border stability: Both nations agreed to maintain peace along the Line of Actual Control (LAC).
  • Economic cooperation: Trade and investment discussions took center stage.
  • People-to-people exchanges: Resumption of cultural programs and educational collaborations was discussed.
  • China’s Emphasis on Stable Ties: During these talks, China highlighted the importance of ‘handling differences constructively’ to maintain stable bilateral relations. The Chinese Foreign Ministry emphasized that both sides should work toward de-escalation along the LAC.
  • Restoration of Direct Air Connectivity: India and China agree to resume direct flight services after five years. It is expected to enhance people-to-people exchanges and promote mutual understanding.

Challenges in India-China Relations

• Border Disputes: Despite diplomatic engagements, unresolved border disputes in Ladakh and Arunachal Pradesh continue to be a major irritant. The 2020 Galwan clashes remain a stark reminder of the volatility along the LAC.
• Trade Deficit: While bilateral trade crossed $125 billion in 2024, marking a 1.9% year-on-year increase, India’s trade deficit with China remains a concern.
  • India seeks better market access for its IT and pharmaceutical sectors in China.
• Regional & Global Rivalry: India’s growing ties with the QUAD alliance (US, Japan, Australia) are viewed with suspicion by Beijing.
  • China’s Belt and Road Initiative (BRI) conflicts with India’s vision of regional connectivity, particularly in South Asia.

Road Ahead: Prospects for Future Cooperation

• Strengthening Economic Ties: Both countries can benefit from deeper engagement in sectors such as renewable energy, digital technology, and infrastructure development.
  • Trade agreements addressing the imbalance can foster stronger economic bonds.
• Cultural and Educational Exchanges: Encouraging student exchanges, tourism, and academic collaboration can improve people-to-people relations.
• Diplomatic and Military Dialogue: Sustained military and diplomatic talks are crucial for preventing conflicts.
  • Confidence-building measures (CBMs) along the border can enhance trust.

Conclusion

• As India and China mark 75 years of diplomatic ties, their relationship remains a mix of cooperation and competition.
• While border tensions and trade issues pose challenges, economic collaboration and diplomatic engagement offer opportunities.
• The future of India-China relations will depend on how both nations balance strategic competition with economic and cultural engagement.

General Studies Paper -3

Context: The Budget, tabled in Parliament by the Finance Minister, is the Government’s blueprint on expenditure, taxes it plans to levy, which affect the economy and lives of citizens.

About

• The Union Budget of India, referred to as the annual Financial Statement in Article 112 of the Constitution of India, is the annual budget of the Republic of India, presented each year by the Finance Minister.
• The budget has to be passed by the House before it can come into effect on April 1, the start of India’s financial year.
• After being presented separately for 92 years, the Railway budget was merged in the Union Budget in 2017 and presented together on the recommendation of the Bibek Debroy Committee.
• In 2019, Nirmala Sitharaman became the second woman to have presented the budget after Indira Gandhi.

Components of Budget

• There are three major components — expenditure, receipts and deficit indicators.
• Total Expenditure can be divided into capital and revenue expenditure.
• Capital expenditure is incurred with the purpose of increasing assets of a durable nature or of reducing recurring liabilities.
• Expenditure incurred for constructing new schools or new hospitals are classified as capital expenditure as they lead to creation of new assets.
• Revenue expenditure involves any expenditure that does not add to assets or reduce liabilities.
• Includes expenditure on the payment of wages and salaries, subsidies or interest payments.
• The receipts of the Government have three components — revenue receipts, non-debt capital receipts and debt-creating capital receipts.
• Revenue receipts involve receipts that are not associated with increase in liabilities and comprise revenue from taxes and non-tax sources.
• Non-debt receipts are part of capital receipts that do not generate additional liabilities, it includes recovery of loans and proceeds from disinvestments.
• Debt-creating capital receipts are ones that involve higher liabilities and future payment commitments of the Government.
• Fiscal deficit is the difference between total expenditure and the sum of revenue receipts and non-debt receipts.
• It indicates how much the Government is spending in net terms.
• Positive fiscal deficits indicate the amount of expenditure over and above revenue and non-debt receipts, it needs to be financed by a debt-creating capital receipt.

Implications of Budget on Economy

• Economic Growth: It stimulates growth through government spending on infrastructure, welfare, and reforms that boost private investment.
• Inflation Control: The budget’s fiscal policies influence inflation through subsidy changes, tax adjustments, and debt management.
• Fiscal Deficit and Debt: A high fiscal deficit leads to increased borrowing and higher debt, affecting inflation and interest rates, while efforts to reduce it help fiscal stability.
• Taxation and Reforms: Changes in taxes affect consumer behavior, business investment, and government revenue. Reforms like GST and direct tax changes improve efficiency.
• Employment: Budget allocations for infrastructure, skill development, and welfare programs create jobs and reduce poverty.
• Foreign Investment: Favorable policies attract Foreign Direct Investment (FDI) by improving the ease of doing business.
• Social Welfare: Increases in welfare spending and subsidies help reduce poverty and improve living standards.
• Stock Market Impact: The budget influences market sentiment based on policy changes related to taxation, industry incentives, and reforms.
• Sustainability: Investments in green infrastructure and renewable energy promote sustainable growth and address environmental concerns.

General Studies Paper -2

Context: The Annual Status of Education Report (ASER) 2024 revealed that enrolment in both government and private schools has returned to pre-pandemic levels.

Annual Status of Education Report (ASER)

• The word aser means ‘impact’ in Hindustani.
• It is a nationwide citizen-led household survey that provides a snapshot of children’s schooling and learning in rural India.
• It captures data from all children, including those who are not in school or are absent.
• It tracks children aged 3 to 16 for schooling status, and children aged 5 to 16 are tested for basic reading and arithmetic abilities.
• The survey is coordinated by ASER Centre and facilitated by the Pratham network.
• The first ASER survey was conducted in 2005 and repeated annually for 10 years (2005-2014).
• 2016 Onwards: Shifted to an alternate-year model:
  • Basic ASER Survey: Conducted every alternate year to assess foundational learning in children.
  • Gap Years: Instead of a full survey, ASER explores specific age groups or new dimensions of children’s learning using a different research lens.

Focus

• Enrollment status was collected for all children aged 3-16.
• Children aged 5-16 were tested for basic reading and arithmetic skills.
• Older children (14-16) were asked about digital access and usage, and also completed smartphone-based tasks to assess digital abilities.

Key Findings: Recent Survey

• Improvement in Learning: The proportion of Class 3 students in government schools able to read a Class 2 text rose to 23.4% in 2024, up from 16.3% in 2022.
  • Basic arithmetic skills also improved across both government and private schools.
  • For Class 3, two-thirds could not solve subtraction problems, and only 30.7% of Class 5 students could solve division problems. Class 8 students saw slight improvement, with 45.8% mastering basic arithmetic.
• Regional Variations: States like Uttar Pradesh, Bihar, Haryana, and Odisha saw notable gains in reading levels. Uttar Pradesh had the largest increase, with a 15-percentage-point rise in reading skills.
• Government vs Private Schools: Learning recovery has been stronger in government schools, while private schools still lag behind their pre-pandemic levels. Despite improvements, 30% of children still struggle with reading a Class 2 text.
• Enrolment Trends: School enrolment for children aged 6-14 is at 98.1%, close to pre-pandemic levels. However, government school enrolment, which rose during the pandemic, has dropped to 66.8% in 2024 from 72.9% in 2022. The proportion of underage children in Class 1 also declined to 16.7%, the lowest ever recorded.
• Digital Literacy: Smartphone access has increased significantly in rural areas, with 84% of households owning smartphones in 2024. Among teenagers, 57% use smartphones for educational purposes, but 76% use them for social media. There is a gender gap in smartphone use, with more boys reporting smartphone use and ownership than girls.
• Factors Driving Learning Trends: The report credits the National Education Policy (NEP) 2020 and the Nipun Bharat Mission for improvements in foundational literacy. Digital tools, especially smartphones, have played a key role in continuing education during and after the pandemic.

Suggestions

• The recovery in learning outcomes is evident, substantial gaps in literacy and numeracy persist, particularly in government schools.
• Efforts like the NEP 2020 and the use of digital tools continue to drive improvements, but challenges such as uneven access to educational resources and digital skills remain.
• School readiness programs and the increasing role of digital literacy are helping, but more work is needed to bridge these gaps.