September 17, 2025

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General Studies Paper-3

Context: India’s space sector has directly contributed about $24 billion (₹20,000 crore) to India’s Gross Domestic Product over the last decade.

Space Sector of India

  • India’s space sector has benefitted from decades of consistent investment, with $13 billion invested in the last decade.
  • It is the 8th largest space economy (in terms of funding) in the world.
  • In the recently announced Union Budget for 2024-25, India’s space sector received a significant boost.
  • The Central government allocated ₹13,042.75 crore to support space-related initiatives.

Contribution of Space Sector to India’s GDP

  • The Sector has supported 96,000 jobs in the public and private sector.
  • For every dollar produced by the space sector, there was a multiplier effect of $2.54 to the Indian economy and India’s space force was 2.5 times more productive than the country’s broader industrial workforce.
  • The Indian space sector was diversifying and now had 700 companies including 200 start-ups and had seen revenues grow to $6.3 billion in 2023, which was about 1.5% of the global space market.
  • Satellite communications contributed 54% to the space economy, followed by navigation (26%) and launches (11%).
  • The main industries supported by the space sector were telecom (25%), information technology (10%) and administrative services (7%).

FDI in space sector

  • Under the amended FDI policy, 100% FDI is allowed in the space sector. The entry route for the various activities are as follows:
  • Up to 74% under Automatic route: Satellites-Manufacturing & Operation, Satellite Data Products and Ground Segment & User Segment.
  • Up to 49% under Automatic route: Launch Vehicles and associated systems or subsystems, Creation of Spaceports for launching and receiving Spacecraft.
  • Up to 100% under Automatic route: Manufacturing of components and systems/ sub-systems for satellites, ground segment and user segment.

Potential of Space Sector

  • Export Potential and Investment: Currently, India’s export market share in space-related services stands at ₹2,400 crore (about $0.3 billion). The goal is to boost this to ₹88,000 crore ($11 billion).
  • Rise of Space Tourism: In 2023, the space tourism market was valued at $848.28 million.
  • It is expected to grow to $27,861.99 million by 2032.

Challenges in India’s Space Sector

  • Competition and Global Market Share: To achieve this ambitious goal of 8% of the global market share, Indian space companies must compete effectively on the international stage.
  • Private Sector Participation: While the private sector has shown interest, there’s a need for more substantial investment and commitment.
  • Technology Development and Innovation: Developing cutting-edge technologies, such as reusable launch vehicles, miniaturized satellites, and advanced propulsion systems, requires substantial investment and research.
  • Regulatory Framework and Licensing: Navigating licensing processes, export controls, and compliance can be complex.
  • Infrastructure and Facilities: Developing and maintaining such infrastructure requires significant capital.

Major Reforms In Space Sector of India

  • Indian Space Policy 2023: It laid down roles and responsibilities of organizations such as ISRO, New Space India Limited (NSIL) and private sector entities.
  • It aims to enhance the participation of research, academia, startups and industry.
  • Strategic Proposals by SIA: The Space Industry Association – India (SIA-India) in its Pre-Budget Memorandum for the FY 2024-25 has proposed a substantial increase in India’s space budget.
  • It aims to support India’s expanding space program, foster private sector involvement, drive technological advancements, and position the nation as a key player in the dynamic global space ecosystem.

Way Ahead

  • India aims to commission the Bharatiya Antariksha Station (BAS) by 2035 and land Indian astronauts on the Moon by 2040.
  • Private entities are now actively involved in crucial aspects of research, manufacturing, and fabrication of rockets and satellites, fostering a vibrant ecosystem of innovation. It is expected to integrate Indian companies into global value chains.
  • With this, companies will be able to set up their manufacturing facilities within the country duly encouraging ‘Make In India (MII)’ and ‘Atmanirbhar Bharat’ initiatives of the Government.
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General Studies Paper-2

Context: Defence Minister Rajnath Singh reached Washington DC on a four-day official visit.

About

  • India and US signed two key pacts — a non-binding Security of Supply Arrangement (SOSA) and a Memorandum of Agreement regarding Assignment of Liaison Officers.

Security of Supply Arrangement (SOSA)

  • The SOSA will mandate the US and India to provide reciprocal priority support for goods and services that promote national defence.
  • The arrangement will enable both countries to acquire the industrial resources they need from one another to resolve unanticipated supply chain disruptions to meet national security needs.
  • India is the 18th SOSA partner of the US after Australia, Canada, Denmark, Estonia, Finland, Israel, Italy, Japan, Latvia, Lithuania, the Netherlands, Norway, Republic of Korea, Singapore, Spain, Sweden, and the UK.
  • The two sides also signed a memorandum of agreement regarding the assignment of liaison officers to deepen defence cooperation.
  • This agreement seeks to enhance cooperation, understanding, interoperability, and sharing of information on matters of mutual interest.

Overview of India and US Bilateral Relations

  • Since India’s independence, ties with the United States have weathered the Cold War–era distrust and estrangement over India’s nuclear program.
  • Relations have warmed in recent years and cooperation has strengthened across a range of economic and political areas.
  • Bilateral Trade: The bilateral trade between the two countries has risen by 72 percent between 2017-18 and 2022-23.
  • The US accounted for 18 percent of the gross FDI inflows into India during 2021-22, ranking second behind Singapore.
  • Defense and Security: India and the US have signed a troika of “foundational pacts” for deep military cooperation, beginning with the Logistics Exchange Memorandum of Agreement (LEMOA) in 2016, followed by the Communications Compatibility and Security Agreement (COMCASA) after the first 2+2 dialogue in 2018, and then the Basic Exchange and Cooperation Agreement (BECA) in 2020.
  • In 2016, the United States elevated India to a major defense partner, a status no other country holds.
  • Space: Artemis Accords signed by India established a common vision for the future of space exploration for the benefit of all humankind.
  • The United States and India cooperate through the bilateral Civil Space Joint Working Group.
  • Multilateral Cooperation: India and the United States cooperate closely in multilateral organizations and fora, including the United Nations, G20, Association of Southeast Asian Nations (ASEAN)-related fora, International Monetary Fund, World Bank, and World Trade Organization.
  • Together with Australia and Japan, the United States and India convene as the Quad, a diplomatic network, to promote a free and open Indo-Pacific.
  • Nuclear Cooperation: Civil Nuclear Deal was signed in 2005, under the agreement, India agrees to separate its civil and military nuclear facilities and place all its civil resources under International Atomic Energy Agency (IAEA) safeguards.
  • In exchange, the United States agrees to work toward full civil nuclear cooperation with India.

Challenges

  • India’s preference to its strategic autonomy: While its embrace with the U.S. is getting stronger, deeper and more comprehensive, India is also cognisant of the need to maintain its strategic autonomy.
  • Conflicting positions: India’s muted criticism of the Russian invasion of Ukraine in 2022 expectedly led to some frustration in the West, raising questions over India’s credibility as a security partner.
  • Defence Relations with Russia: The United States has expressed particular concern regarding new streams of arms like the S-400 air defense system, because they fuel Russian power, diminish prospects for interoperability of and secure communications between U.S. and Indian forces, and preclude sharing of existing sensitive weapons technologies.

Conclusion

  • The evolving relationship between India and the United States holds significant importance in shaping the global order of the 21st century.
  • To fully unlock the potential of this partnership, both governments must focus on reducing bilateral and multilateral bottlenecks and charting a course for a comprehensive and strategic global alliance.
  • The strengthening of the mechanisms of cooperation between the two militaries is of significance in the context of an increasingly aggressive China.
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General Studies Paper-3

Context: The Union Cabinet approved the BioE3 Policy (Biotechnology for Economy, Environment, and Employment) to drive a biotech manufacturing revolution, akin to the IT sector’s transformation in the 1990s.

Aim:

  • The BioE3 Policy aims to revolutionize biotechnology in India by boosting sustainable bio-manufacturing across sectors like healthcare, agriculture, and environmental conservation. It fosters innovation, supports national priorities, and enhances employment through advanced biotechnological processes.
  • Features of the BioE3 (Biotechnology for Economy, Environment, and Employment) Policy:
  • It focuses on promoting biotechnology-based manufacturing in India, aiming to catalyze a technological revolution. Here are the important features:
  1. High-Performance Biomanufacturing: Focuses on manufacturing products through advanced biotechnological processes, including medicines, materials, and bio-based products for agriculture and industry.
  2. Strategic Thematic Sectors: The policy covers six thematic areas:
  3. Bio-based chemicals, biopolymers, and enzymes.
  4. Smart proteins and functional foods.
  5. Precision biotherapeutics.
  6. Climate-resilient agriculture.
  7. Carbon capture and utilization.
  8. Marine and space research.
  9. Fostering Innovation: Encourages the development of bio-based products that can address environmental, agricultural, and industrial challenges.
  10. Capacity Building: Supports the creation of internships for students in grades 11th and 12th, as well as fellowships for graduate and post-graduate research.
  11. Focus on National Priorities: Addresses critical areas such as sustainable agriculture, environmental conservation, and biotechnology innovation to meet national needs.
  12. Government Backing: Merged various schemes into a single initiative called “Vigyan Dhara,” which allocates significant resources for science, technology, research, and innovation.

What is Biotechnology?

It is a technology that utilizes biological systems, living organisms or parts of this to develop or create different products. Genomic technologies are defined as technologies used to manipulate and analyze genomic information.

 

Examples of Biotechnology

  1. Medical Biotechnology
  2. Genetic engineering
  3. Industrial Biotechnology
  4. Environmental Biotechnology

Potential of Biotechnology in Healthcare and Agriculture:

Potential of BiotechnologyDetails
Gene TherapyReplaces/modifies defective genes with healthy ones. Cures diseases like Parkinson’s, cystic fibrosis, haemophilia, muscular dystrophy, sickle cell anaemia.
PharmacogenomicsStudies genetic response to drugs, optimizing therapy with fewer adverse effects. Helps develop better vaccines, powerful medicines.
Stem Cell TherapyUses stem cells to repair diseased or injured tissues. Treats cardiovascular and neurodegenerative diseases (Parkinson’s, Alzheimer’s, Huntington’s).
Molecular DiagnosticsTechniques like Recombinant DNA, PCR, and ELISA enable early diagnosis for better treatment.
Edible VaccinesUses transgenic plants to produce vaccines. Treats diseases like cholera, hepatitis B, and foot and mouth disease.
GM CropsEnhances pest resistance, tolerance to abiotic stresses (cold, drought), and nutritional value (golden rice). Increases photosynthesis efficiency.
Increase in Crop ProductionImproves crop yield through better disease control and stress tolerance. Reduces losses for farmers.
BiofortificationEnhances micronutrient content in crops through genetic modification or enriched fertilizers.
Tissue CultureRegenerates disease-free plants in labs, providing high-quality planting materials.
Fresher Produce/Increased Shelf-LifeExtends the shelf life of food, reducing waste and ensuring access to fresher produce.
Aesthetic FlowersImproves flowers’ smell, size, and ornamental qualities of shrubs and trees.
Breeding of AnimalsUses artificial insemination for enhanced breeding in livestock like sheep and cattle.
Other ApplicationsHybrid seeds, biofertilizers, biopesticides, stress-resistant crops, and improved animal production through better growth, nutrition, and health.

 

Few challenges associated with Biotechnology

  • Biotechnology can threaten the survival of certain species by interfering with natural ways of breeding
  • As biotechnology allows crops to intake more nutrients from the soil, this will result in loss of soil fertility
  • Biotechnology can lead to biological weapons that terrorists could use for destruction (Bio wars)
  • Altering DNA in humans can result in the commercialization of these techniques thus it can turn human life into a commodity.
  • Protecting patient privacy is becoming an increasing concern due to the latest advances in technology that are making it possible to decipher the human genome.
  • The development in genomics and techniques for creating artificial genes present serious threats to humans and the environment in general
  • Lack of public awareness of the modern tools of biotechnology

Conclusion

Biotechnology has numerous advantages but it also has some disadvantages. Biotechnology could be utilised in solving future problems like food and water insecurity, hereditary diseases, etc but its ethical, and social issues need to be taken into account while its usage

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PM’s visit to Ukraine

General Studies Paper-2

Context: Prime Minister Narendra Modi’s visit to Ukraine on August 23, 2024, was largely seen as a diplomatic balancing act rather than a significant peace effort.

India-Ukraine Relations:

  • Diplomatic Relations: India recognized Ukraine as an independent country in December 1991 after the breakup of the Soviet Union. Warm and friendly relations, cooperation in education, legal assistance, and outer space.
  • Defence Relations: Ukraine has supplied military technology to India since its independence. India uses Ukraine-made R-27 air-to-air missiles for SU-30MKI fighters. India has started supplying weapons to Ukraine to enhance defence cooperation.
  • Trade: India is Ukraine’s largest export destination in the Asia-Pacific region and fifth largest overall. Pharmaceuticals are India’s main export to Ukraine.
  • Culture: Over 30 Ukrainian cultural associations promote Indian dance across Ukraine. Approximately 18,000 Indian students, primarily in medical fields, study in Ukraine. Indian professionals work in pharmaceuticals, IT, engineering, and more.
  • Agriculture: Pre-war Ukraine was one of the biggest sources of sunflower oil for India.
  • Post-war Recovery: Both countries are exploring Indian companies’ involvement in Ukraine’s reconstruction and recovery efforts.

India’s Stand on the Ukraine-Russia Conflict:

  1. Advocates peaceful resolution through dialogue and diplomacy.
  2. Asserted that India is not neutral, choosing the side of peace.
  3. Expressed concern without openly condemning Russia.
  4. Emphasised the importance of the UN Charter and territorial sovereignty.
  5. Highlighted the economic impact of the war on the Global South.
  6. Strongly favours a return to dialogue and diplomacy.

Why is India regarded as the best mediator?

  1. Neutral player: As India has walked the diplomatic tightrope, it has won credibility on both sides as a mediator between them.
  2. Successful diplomatic involvement earlier:
  3. Preventing the attack on the nuclear power station at Zaporizhzhia in eastern Ukraine.
  4. During the Black Sea grain shipment, discussions to intervene with Russia.
  5. Leader of Global South: Mexico had suggested that the PM of India, Pope Francis and the UN Secretary-General should mediate the Russia-Ukraine crisis.
  6. Good relations with Moscow and the West: India can use this unique leverage to put pressure on Russia to end its war in Ukraine.
  7. Geopolitical aspirations: Peace-making might help India gain a permanent seat on the UN Security Council.

Challenges ahead for India to be a mediator:

  1. Understanding the dynamics: Between Russia and Ukraine, Russia and the European players, Ukraine and European partners and move ahead accordingly.
  2. Experience: India has effectively negotiated in bilateral and multilateral formats, but negotiating in a crisis is a different question.
  3. Risk-taking ability: While India has shown risk-taking abilities in its immediate region (surgical strikes in Pakistan), entering a geopolitical crisis of this size is different.
  4. Credibility: The West sees India as closer to Russia, as India keeps buying Russian oil at discounted prices despite the West’s criticism.
  5. Cannot afford a slide in relations with Russia:
  6. Both India and Russia have strategic ties in nuclear, space, defence, energy, and connectivity – sectors.
  7. Russia does not transfer to any other country the military technologies shared with India.
  8. Also, India cannot afford a closer strategic relationship between Russia and China.

Conclusion:

The Russia-Ukraine crisis has entered a new phase, in which Indian diplomacy could aid in a range of realistic ways to address the stated challenges.

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General Studies Paper-3

Context: Recently, the Union Trade Minister stirred up debate on India’s e-commerce sector, instead of celebrating its exponential growth, he expressed concern.

About status of the e-commerce market in India

  • India, with its rapidly growing digital economy and expanding internet user base, is on the brink of a massive transformation in its retail sector.
  • At present, the e-commerce market in India is valued at $70 billion, which accounts for around 7% of the nation’s overall retail market.It is predicted to grow to a staggering $325 billion, and the country’s digital economy is expected to reach $800 billion.
  • The number of online shoppers in India is projected to increase with a compound annual growth rate (CAGR) of 22% to 88 million in rural India and 15% to 263 million across urban India between 2019 and 2026.
  • It is expected to lead to India surpassing the US as the second largest online shopper base in one to two years.

Factors Driving Rise of the E-commerce

  • India currently boasts the second-largest internet user base in the world, with over 900 million users.
  • By 2030, it is expected to rise to the third position in the online retail industry.
  • This growth is driven by increasing internet penetration, with around 87% of Indian households expected to have internet connections by 2025.
  • The duration of internet access through mobiles has seen a 21% rise compared to 2019.
  • Indian consumers with annual incomes ranging from INR 2.5 lakh to INR 10 lakh will be responsible for driving nearly half of the growth in India’s $300 billion e-commerce market by 2030.
  • The growth of e-commerce in India has been done by the advancement of efficient logistics and supply chain networks. Government initiatives, like the National Logistics Policy, have streamlined last-mile deliveries, significantly improving logistical efficiency and cost-effectiveness.
  • E-commerce offers consumers the ease of shopping from their homes or on the go, saving both time and effort. For example, food delivery platforms like Zomato and Swiggy have become incredibly popular due to this convenience.
  • Invest India predicted a significant increase in the number of households engaging in e-commerce transactions, from 60-70 million in 2022 to 120-130 million by 2030.

Challenges associated with e-commerce market in India

  • Platform Neutrality and Fairness: There are concerns about lack of platform neutrality, unfair platform-to-business contract terms, exclusive contracts between online marketplace platforms and sellers/service providers, platform price parity restrictions, and deep discounts.
  • Taxation: The provisions on carry-forward of losses need to be more accommodative of business restructuring, and withholding tax norms need more clarity.
  • Inclusion of Small and Medium Enterprises (SMEs): SMEs often find it challenging to participate in the e-commerce ecosystem due to the need for separate infrastructures for different platforms, distinct terms and conditions of each platform, and the costs associated with these.
  • Digital Infrastructure and Internet Penetration: The robustness of digital infrastructure is crucial for smooth and seamless online transactions.
    • Any disruption in the digital infrastructure can lead to transaction failures, affecting the trust and confidence of consumers in e-commerce.
    • While internet penetration is increasing in India, there is still a significant portion of the population, particularly in rural areas, that does not have access to the internet.
  • Regulatory Challenges: E-commerce businesses in India also face regulatory challenges including issues related to data protection, consumer protection, taxation, and other legal and regulatory compliances.

Related Initiatives to Overcome Challenges

  • Policy Support: 100% FDI is allowed in B2B e-commerce.
    • 100% FDI under the automatic route is permitted in the marketplace model of E-commerce.
  • Government e-Marketplace (GeM): It has facilitated government procurement, crossing an impressive INR 4 Lakh Cr in GMV.
  • Open Network for Digital Commerce (ONDC): It aims to provide equal opportunities to MSMEs to thrive in digital commerce and democratise e-commerce.
  • Other major initiatives include Digital India (to transform India into a digitally empowered society and knowledge economy), Skill India (to train people in different skills), Startup India (to build a strong ecosystem for nurturing innovation and startups in the country), Make in India (to encourage companies to manufacture their products in India), Innovation Fund (aimed at encouraging entrepreneurship and innovation in the country), and BharatNet (to grow rural broadband penetration) etc.

Way Forward (Policy Shift: Striking a Balance)

  • Stricter Regulations: The government is contemplating stricter regulations for e-commerce players. While growth is fantastic, it shouldn’t come at the cost of the well-being of others. There is a need to balance growth with consumer safety.
  • Fair Play and Transparency: The Union Trade Minister wants foreign direct investment (FDI) and technology to thrive but insists on honesty and transparency. Both online and offline businesses should play by the same rules.
    • It’s about finding that sweet spot where progress doesn’t compromise our health and social fabric.

Conclusion

  • The rapid growth of India’s digital economy, coupled with the increasing internet penetration and the rise of the mass consumer segment, is set to propel India to become the world’s third-largest ecommerce market by 2030.
  • It presents a tremendous opportunity for businesses and investors alike, making India one of the most attractive markets for ecommerce in the world.
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General Studies Paper-2

Context

  • The issue of sexual violence against women is deeply concerning, and it’s essential to explore why our legal framework sometimes falls short in addressing this pervasive problem.

About the Sexual Violence

  • According to the World Health Organisation (WHO), it is any sexual act, attempt to obtain a sexual act, or other act directed against a person’s sexuality using coercion, by any person regardless of their relationship to the victim, in any setting.
  • It includes rape, defined as the physically forced or otherwise coerced penetration of the vulva or anus with a penis, other body part or object.

Historical Context and Legal Framework in India

  • India’s legal framework related to sexual violence has evolved over time, influenced by feminist movements, anti-caste movements, and other vocalisations.
    • Laws cover a range of offenses, from rape to verbal abuse of a sexual nature.
  • Minority laws related to sexual violence—ranging from rape to verbal abuse—hold significant historical importance. Understanding this context is crucial for meaningful reform.

Intersectionality and Gender Violence

  • To understand sexual violence legislation comprehensively, there is need to consider intersectionality. Factors such as class, caste, religion, and geography significantly influence how cases of gender violence are perceived by civil society, the government, and the media.
  • These factors also impact the perception of perpetrators and the punishments meted out.

Beyond Rape Alone

  • Laws on rape cannot exist in isolation. To truly address men’s brutalisation of women, there is need to recognise that sexual violence is just one facet of a larger problem, including:
  • Dowry Deaths: In India, annual dowry deaths claim approximately 6,516 lives—that’s one victim every 90 minutes.
    • Shockingly, the conviction rate in such cases remains abysmally low. The accused often escape justice by paying “blood money” to the victim’s family—a compromise routinely allowed by the police and courts.
  • Domestic Violence: Undoubtedly, domestic violence is the most underrated crime against women across all socio-economic strata.
    • The law prescribes a maximum punishment of three years’ imprisonment, making it nearly impossible for the police to arrest the accused promptly.
  • Stalking and Harassment: Similar issues plague cases of stalking and harassment. Lax bail norms hinder corrective action, allowing aggressors to continue their predatory behaviour unchecked.
  • Marital Rape: The penal code does not recognise marital rape, which is a significant issue.

Calcutta High Court Verdict (2023)

  • It issued a controversial judgement advising adolescent girls to “control sexual urges.” This ruling sparked significant debate and concern.
  • The contentious observations made by the Calcutta High Court included statements such as:
    • Duty to Protect Autonomy and Dignity: The High Court suggested that it is the duty of every female adolescent to protect her right to integrity, dignity, and self-worth.
    • Control of Sexual Urges: The judgement implied that girls should control their sexual urges, as societal perception often labels them as “losers” when they engage in sexual pleasure.
  • However, recently the Supreme Court stepped in and set aside the High Court’s order, emphasising the need to protect children from sexual offences.

Related Concerns

  • Despite legal frameworks, the implementation of rape laws in India remains poor.
    • Survivors, especially those from marginalised communities based on caste, class, and ethnicity, face numerous obstacles in accessing justice.
    • Corruption within law enforcement agencies exacerbates these challenges.
  • Low Conviction Rates: Despite doubling prison terms for rapists to 20 years, India still grapples with a low conviction rate.
    • Structural factors—such as caste, community, and class status—contribute to this.
    • Vulnerable groups, including working-class women, minorities, and lower-caste Dalits, face heightened risk.
    • Additionally, riot or conflict situations exacerbate their vulnerability to sexual violence.
  • Flaws in the Judicial System: The wheels of justice turn too slowly. Civil society activists rightly demand quicker implementation of laws.
    • Vigilante justice sometimes fills the void left by the sluggish legal process.

Supreme Court Intervention

  • The Supreme Court’s intervention restored the conviction of the accused under the Protection of Children from Sexual Offences (POCSO) Act and the Indian Penal Code (IPC).
  • Additionally, the Court directed states to implement relevant provisions of the POCSO Act and the Juvenile Justice Act.
  • Such decisions play a vital role in shaping legal norms and societal attitudes toward sexual violence.

Intersectional Approaches and Community Engagement

  • Safe Spaces: Courts must ensure that marginalised groups—such as Muslim and Dalit women—feel safe within legal and medical institutions.
  • Community engagement programs can educate people about the impact of sexual violence and the importance of supporting survivors.
  • Changing societal attitudes is crucial for long-term change.

Conclusion

  • There are multifaceted solutions against sexual violence. Strengthening laws is essential, but so is addressing the broader ecosystem—where dowry deaths, domestic violence, and harassment persist.
  • Efforts to combat sexual violence must address gaps in governance systems. Recommendations made by experts often remain unimplemented, leading to inadequate utilisation of allocated budgets.
  • Solutions should focus on effective implementation and systemic change.
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General Studies Paper-3

Context: In recent years, there has been a resurgence of interest in industrial policy—a topic that often walks a tightrope between government intervention and market forces. India, like many other countries, is grappling with the need for a fresh approach to industrial policy—one that can facilitate sustained economic growth and transform the nation into a global manufacturing hub.

India’s Historical Industrial Policies

  • Licence-Permit Raj Era: Post-Independence, India’s industrial policy was characterised by what became infamously known as the ‘License-Permit Raj’.
  • The Industries (Development and Regulation) Act of 1951 mandated government approval for every industrial decision, resulting in excessive bureaucracy.
  • The Monopolies and Restrictive Trade Practices (MRTP) Act of 1969 and the Foreign Exchange Regulation Act (FERA) of 1973 further restricted growth and isolated Indian industries from global competition.
    • Unfortunately, these policies stifled innovation and hindered progress.
  • On the other hand, laissez-faire approaches left gaps in addressing market failures and public goods provision, resulted in inefficiency and stifled innovation.

Shift Towards Liberalisation

  • The 1980s marked a shift towards liberalisation, and the landmark reforms of 1991 dismantled barriers like industrial licensing and reduced import tariffs.
    • These changes aimed to boost efficiency and encourage private investment.
  • However, India’s manufacturing sector still faced challenges related to infrastructure, labour laws, and regulatory complexities.

Need for a New Industrial Policy

  • Industrial Policies are conceptualises as policies and government interventions specifically designed to alter the composition of economic activities in pursuit of predetermined public objectives.
  • These objectives typically encompass enhancing innovation, increasing productivity, and fostering economic growth.
  • However, they may also extend to objectives such as facilitating the climate transition, improving labour market outcomes, reducing regional disparities and expanding export capacity.
  • A defining feature of industrial policy is its inherent selectivity, wherein policy makers exercise allocative discretion — strategically prioritising certain sectors or industries over others to induce structural transformation, albeit with the implicit trade-off that some sectors may be de-prioritised.

Role of Industrial Policy

  • Strategic Interventions: Industrial policies should be purposeful. Governments can strategically intervene to correct market failures, promote innovation, and guide resource allocation.
  • Balancing Act: It’s about finding the sweet spot—enough regulation to address inefficiencies but not so much that it stifles growth. Economic progress must not be sacrificed.
  • Public Objectives: Industrial policies can target specific sectors, such as automakers, energy companies, or semiconductor manufacturers. These policies may create new costs or provide incentives for R&D and manufacturing investments.

Key Features of the New Industrial Policy

  • Make in India: The policy aims to transform India into a manufacturing hub by promoting domestic production and attracting foreign investment. It encourages industries to set up manufacturing units within the country.
  • Smart Technologies: The new policy incorporates modern technologies like the Internet of Things (IoT), artificial intelligence (AI), and robotics. These technologies enhance productivity and competitiveness in manufacturing.
  • Ease of Doing Business: Simplifying regulatory processes and reducing bureaucratic hurdles are essential components. Streamlining approvals and licences can attract more investment.
  • Sectoral Missions: Initiatives like the Semiconductor Mission and Gati Shakti focus on specific sectors, fostering growth and innovation.

Related Concerns

  • Global Trends and Shift: Worldwide, there’s a rethinking of market-driven approaches, because of technological disruption, economic stagnation, and geopolitical competition.
  • China’s Rise: China’s rapid industrialisation has prompted both admiration and concern. As it becomes a global manufacturing powerhouse, other countries are reevaluating their own strategies.
  • Technological Changes: Automation, digitalisation, and Industry 4.0 underscore the need for government involvement. Industrial policies can shape economic activities, enhance innovation, and boost productivity.
  • Weak Manufacturing Base: Countries worldwide recognise that a robust manufacturing sector is crucial for sustained economic growth. No major economy has achieved poverty reduction or long-term prosperity without a strong manufacturing base.
    • India’s recent manufacturing push, including initiatives like ‘Make in India’ aligns with global trends.
    • While the Production Linked Incentive (PLI) scheme is often seen as an industrial policy, it primarily offers financial incentives to boost manufacturing in specific sectors and does not fully address the broader structural challenges needed to transform India into a global manufacturing hub.
  • Declining Manufacturing Employment: Advanced economies are grappling with this challenge. They seek ways to maintain competitiveness and create jobs.
  • Challenges Faced By Fourth Industrial Revolution: India’s new industrial policy acknowledges the challenges and opportunities posed by the Fourth Industrial Revolution.
    • It aims to position India as a global leader in emerging technologies such as artificial intelligence, blockchain, and drones.
    • The policy emphasises ease of doing business, production-linked incentives, and sectoral missions. By leveraging digital technology, India aims to leapfrog into the global supply chain.
Do You Know About Washington Consensus

v  It emerged as a set of economic policy prescriptions promoted primarily by institutions based in Washington, D.C., including the International Monetary Fund (IMF), the World Bank, and the United States Department of the Treasury.

v  It was first introduced in 1989 by economist John Williamson and laid out Ten Broad Policy recommendations (Decalogue of Consensus Policies) that constituted this “standard” reform package that were meant for crisis-hit developing countries, aiming to guide their economic recovery and growth.

It includes:

1. Fiscal Policy Discipline: Keep those fiscal deficits in check relative to your GDP.

2.  Redirect Public Spending: Move away from indiscriminate subsidies and focus on essential services like primary    education, healthcare, and infrastructure.

3. Trade Liberalisation: Open up your markets, embrace global trade, and let those goods flow.

4. Privatisation: Sell off state-owned enterprises and let private hands manage them.

5. Financial Liberalisation: Free up your financial markets—let capital flow, but keep an eye on stability.

6. Monetary Policy: Tame inflation, stabilise your currency, and keep the money supply in check.

Conclusion and Way Forward

  • India’s industrial policy is no longer trapped in the maze of bureaucracy. Instead, it seeks a balanced approach—enough regulatory nudge to correct market failures while allowing businesses to thrive.
  • As India continues its journey toward economic transformation, a dynamic and forward-looking industrial policy remains crucial.
  • A well-crafted industrial policy—one that balances pragmatism with ambition—can propel India forward.
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General Studies Paper-1

Context: A new study has predicted that global flooding incidence could increase by 49 per cent between 2020 and 2100 if the world continues to follow the ominous path of emitting greenhouse gases en route development.

About

  • Researchers created a high-resolution Global Flood Map (GFM) using updated techniques to better simulate flood behaviors and adjust probabilities based on factors like rainfall, river discharge, and sea level rise.

Key findings of study

  • Geographical Variations: Flood risk will vary significantly; some areas may experience a decrease in risk, while others may face increases far exceeding the global average.
  • Region: The greatest increases in flooding are expected around coastlines in tropical Africa and Asia, and in arid North Africa.
    • The North Atlantic and Indian Ocean coasts, southeastern Asia, and Pacific Islands will also be notably affected.
  • Risk Assessment for 2050: Flood risk is projected to be 7% under low emissions and 15% under high emissions.
  • Coastal Flood Hazard: Coastal flooding risk is expected to almost double (99% increase) by 2100, even under a low emissions scenario, due to rising mean ocean temperatures and expanding sea levels.
  • River-Triggered Flooding: Increased risk of river-triggered flooding is projected for sub-Saharan Africa, parts of Asia, and South America.
  • Rainfall-Induced Flooding: Flooding due to rainfall is likely to increase by 6% under low emissions and 44% under high emissions scenarios by 2100.

Causes of Global Flooding

  • Climate Change: One of the primary drivers of increased flooding is climate change.
    • Rising global temperatures lead to more intense and frequent precipitation events. Warmer air holds more moisture, which can result in heavier rainfall..
  • Urbanization: Rapid urban development often leads to increased impervious surfaces, such as roads and buildings, which reduce the land’s ability to absorb rainwater.
    • This can overwhelm drainage systems and result in localized flooding.
  • Deforestation: The destruction of forests for agriculture and development reduces the land’s ability to absorb water. Deforestation increases runoff and can lead to more severe and frequent flooding.
  • Infrastructure Failures: Aging or inadequate infrastructure, such as levees, dams, and stormwater management systems, can fail under extreme weather conditions.

Impacts of Global Flooding

  • Displacement: Communities affected by severe flooding often face displacement and loss of homes.
  • Health: Flooding poses significant health risks, including waterborne diseases, injuries, and fatalities.
    • Displaced populations often face challenges accessing medical care and clean water, exacerbating health issues.
  • Economic Losses: Floods can cause extensive damage to property, infrastructure, and agriculture. The economic cost includes repair and rebuilding expenses, loss of business, and disruption of economic activities.
  • Environmental Damage: Floods can have detrimental effects on ecosystems, including soil erosion, habitat destruction, and pollution of waterways.
    • The introduction of pollutants from industrial sites and sewage can degrade water quality and harm wildlife.

Mitigation and Adaptation Strategies

  • Improved Infrastructure: Investing in resilient infrastructure is crucial for flood management.
    • This includes upgrading drainage systems, building flood barriers, and maintaining and improving existing flood defenses.
  • Sustainable Urban Planning: Adopting sustainable urban planning practices can mitigate flooding risks.
    • This involves integrating green spaces, improving land use practices, and ensuring that development does not exacerbate flood risks.
  • Early Warning Systems: Advancing early warning systems and emergency response mechanisms can help communities prepare for and respond to flooding more effectively.
  • Restoration of Natural Ecosystems: Restoring wetlands, forests, and other natural landscapes can enhance water absorption and reduce flood risks.
  • Climate Change Mitigation: Addressing the root cause of increased flooding requires global efforts to combat climate change. Reducing greenhouse gas emissions, transitioning to renewable energy sources, and adopting climate-resilient practices are essential steps.
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General Studies Paper-3

Context: India is on its way to achieve its target of blending 20% of petrol with ethanol by 2025-26.

  • 20% by 2025-26 would mean producing some 1,000 crore litres of ethanol for blending with petrol.
  • Taking stock in December 2023, India’s ethanol production capacity had already increased to 1,380 crore litres — some 875 crore litres capacity from sugarcane and 505 crore from foodgrains.
    • This means the targeted total ethanol capacity is nearly achieved although with a greater sugarcane-based component.
  • Government policy is that maize as well as surplus rice and damaged grains will be used to feed grain-based distilleries.

Ethanol

  • Ethanol, an anhydrous ethyl alcohol having chemical formula of C2H5OH, can be produced from sugarcane, maize, wheat, etc which are having high starch content.
  • In India, ethanol is mainly produced from sugarcane molasses by fermentation process.
  • It can be mixed with gasoline to form different blends.

Ethanol Blending

  • Ethanol blending refers to the practice of mixing ethanol with gasoline to create a fuel mixture that can be used in internal combustion engines.
  • There are a few common blends:
    • E10: This is a mixture of 10% ethanol and 90% gasoline. It is the most common blend and is used widely in many countries.
    • E15: This blend contains 15% ethanol and 85% gasoline.
    • E85: This is a high-ethanol blend, consisting of 85% ethanol and 15% gasoline. It’s used in flex-fuel vehicles designed to run on higher ethanol content.
  • Significance: As the ethanol molecule contains oxygen, it allows the engine to more completely combust the fuel, resulting in fewer emissions and thereby reducing the occurrence of environmental pollution.
    • Since ethanol is produced from plants that harness the power of the sun, ethanol is also considered as renewable fuel.

India’s Ethanol Blending Program

  • The Ethanol Blended Petrol (EBP) programme was launched in 2003.
    • The programme sought to promote the use of alternative and environment friendly fuels and to reduce import dependency for energy requirements.
  • Objectives
    • Reduce Import Dependence: India aims to decrease its reliance on imported crude oil, thereby improving energy security.
    • Environmental Benefits: Ethanol is a cleaner-burning fuel compared to gasoline, which helps in reducing air pollution and greenhouse gas emissions.
    • Support for Farmers: The program supports the agricultural sector by providing a market for ethanol, which is often derived from sugarcane, corn, or other crops.
  • Key Components
    • Blending Targets: India has set specific targets for ethanol blending. For instance, the National Policy on Biofuels (2018) outlines a target of 20% ethanol blending in petrol by 2025.
    • Phased Implementation: The blending targets are being rolled out in phases. Initially, the focus was on achieving a 10% ethanol blend (E10) by 2022, and the program is gradually moving towards higher blends like E20.
    • Infrastructure Development: The government has been investing in the infrastructure necessary for ethanol production, storage, and distribution, including establishing more ethanol production facilities and blending units.
    • Incentives and Support: Various financial incentives and support mechanisms are provided to encourage ethanol production and blending. This includes subsidies for ethanol producers and incentives for upgrading infrastructure.

Challenges

  • Infrastructure: Developing the necessary infrastructure for large-scale ethanol production and blending can be complex and costly.
  • Feedstock Availability: Ensuring a steady and adequate supply of raw materials for ethanol production, such as sugarcane, can be challenging, especially in the face of changing agricultural conditions and market fluctuations.
  • Consumer Acceptance: Educating consumers and ensuring that vehicles can run efficiently on higher ethanol blends are also important for the program’s success.

Conclusion

  • India’s Ethanol Blending Program is a significant step towards a more sustainable and self-reliant energy future, aligning with broader goals of environmental protection and energy independence.
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General Studies Paper-2

Context: The rising tensions in the South China Sea are posing a threat to international trade.

South China Sea

  • It is a marginal sea of the Western Pacific Ocean.
  • It is located between southern China, Taiwan, the Philippines, Indonesia, Vietnam, Thailand, Cambodia and Malaysia.
  • It is a crucial maritime gateway and junction for shipping between the Pacific and Indian Oceans.

Choke Point in the South China Sea

  • While the current tensions are between China, the Philippines and Taiwan, the real threat to trade in the Sea comes in the Malacca Strait.
    • The strait is the Choke point in the South China Sea, which lies between Malaysia, Indonesia and Singapore.

Nine Dash Line

  • China stakes claim to 90% of the South China Sea (SCS), and this claim is based on the U-shaped nine-dash line etched on map in the 1940s by a Chinese geographer.
    • He helped to officially name each chunk of rock and reef, referring to the territory collectively as the South China Sea Islands.
  • These lines cut into the exclusive economic zones (EEZs), of Brunei, Indonesia, Malaysia, the Philippines, Taiwan and Vietnam.
  • In recent years, China has doubled down on its territorial claims in the SCS, including in the waters off the Philippines, where Chinese vessels have engaged in brazen acts of provocation.

Importance of the South China Sea for international trade

  • According to the United Nations Conference on Trade and Development (UNCTAD), about a third of global maritime trade passes through the 3.5 million square kilometer seaway annually,
  • Around 40% of petroleum products traded globally are delivered via the sea every year.
  • In 2016, an estimated $3.6 trillion worth of goods and commodities traveled the seaway.
  • Tens of thousands of cargo vessels move through the South China Sea every year, carrying around 40% of China’s, a third of India’s and 20% of Japan’s trade with the rest of the world.
    • Out of all of Asia, the three countries’ economic security is most closely tied to the smooth running of the waterway.

Why is the South China Sea contested?

  • According to the US Energy Information Administration, the South China Sea is estimated to hold about 5.38 trillion cubic meters of natural gas and 11 billion barrels of oil reserves,
  • The disputed waters also contain large deposits of rare-earth minerals crucial to China’s technological ambitions, including electric vehicle batteries and advanced electronics.
  • China could also deny foreign military forces, particularly the United States’, access to the maritime region.
  • Control of the sea lane would allow China to potentially disrupt, or threaten to disrupt cargo shipments traveling to and from all countries in East and Southeast Asia.

Way Ahead

  • The South China Sea is a vital crossroads for both intra-Asian trade as well as for commerce with the rest of the world, especially Europe, the Middle East and Africa.
  • Hence to de-escalate the current tensions in the South China Sea different parties should avoid hostile actions against each other, uphold a more reconciliatory attitude and emphasize the need to cooperate rather than compete.
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