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September 16, 2025 Current Affairs
Mains Analysis
Supreme Court Ruling on Anticipatory Bail in Caste Crime Cases
The Supreme Court recently overturned a Bombay High Court order that had granted anticipatory bail in a caste-related offence, in the case of Kiran vs Rajkumar Jivaraj Jain. The case involved allegations of caste-based assault, abuse, and intimidation arising from an electoral dispute. The Bench, headed by Chief Justice of India B. R. Gavai, emphasized that under Section 18 of the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989, anticipatory bail is expressly prohibited when a prima facie case is established.
Overview of the SC/ST (Prevention of Atrocities) Act, 1989
· The SC/ST (Prevention of Atrocities) Act, 1989, was enacted to provide comprehensive protection to members of Scheduled Castes and Scheduled Tribes from systemic discrimination, violence, and social exclusion. The legislation criminalises a wide array of caste-based atrocities, including verbal abuse, physical violence, land dispossession, economic and social boycotts, denial of access to public amenities, and sexual assault. · To ensure justice and deterrence, the Act mandates the establishment of special courts for prompt trials, prescribes stringent punishments, and introduces safeguards like victim and witness protection, as well as provisions for relief and rehabilitation. Central to the law is Section 18, which precludes the granting of anticipatory bail to accused persons under the Act. This provision is based on the recognition that victims, often vulnerable and marginalised, face heightened risks of coercion, intimidation, or retaliation if accused persons are allowed pre-arrest bail. Subsequent amendments have further fortified the Act by expanding its scope, improving victim compensation schemes, and increasing accountability among public officials to prevent neglect in addressing caste-based atrocities.
Background of the Case
· The case arose in November 2024, when a member of a Scheduled Caste filed a First Information Report (FIR) alleging that he and his family were attacked and verbally abused with casteist slurs after refusing to vote in line with the accused''s instructions during the Assembly elections. The Additional Sessions Judge at Paranda rejected the anticipatory bail plea, noting that the allegations reflected caste-based animus and were supported by corroborative evidence. · However, the Bombay High Court''s Aurangabad Bench later overturned the lower court’s decision, granting anticipatory bail to the accused. The High Court characterised the case as politically motivated and inconsistent. This order was subsequently challenged before the Supreme Court.
Bar on Anticipatory Bail under the SC/ST Act
· The Supreme Court reiterated that Section 18 of the SC/ST (Prevention of Atrocities) Act creates an explicit bar on anticipatory bail under Section 438 of the Criminal Procedure Code (now Section 482 of the Bharatiya Nagarik Suraksha Sanhita). This legislative safeguard was specifically introduced to prevent interference with the prosecution process and to protect victims from possible threats or manipulation by the accused. · The Court drew upon established precedents, including Ram Krishna Balothia (1995), Vilas Pawar (2012), and Prathvi Raj Chauhan (2020), to affirm the constitutional validity of this provision. It underscored that offences under this Act are of a distinct nature, rooted in systemic caste-based discrimination, and that the exclusion of anticipatory bail aligns with Articles 14 and 21 of the Constitution. Importantly, the Court clarified that at the anticipatory bail stage, the judiciary''s role is not to delve into a detailed evaluation of evidence or conduct a “mini-trial.” Instead, courts must only ascertain whether a prima facie case exists under the Act. · In the present matter, the use of caste slurs, the nature of the public assault, and the electoral context of the attack were sufficient to bring the offence within the ambit of the Act. Accordingly, the grant of anticipatory bail was impermissible.
Supreme Court’s Key Observations
· The Supreme Court made several important clarifications in its judgment. It ruled that insults and assaults that occur outside the complainant’s residence, in view of the public, fall within the scope of “public view” as defined under Section 3(1)(r) of the SC/ST Act. Furthermore, it held that targeting a Scheduled Caste individual based on his voting preference constituted an offence under Section 3(1)(o), which penalises electoral coercion or retaliation directed at members of SC/ST communities. · The Court also found that the prosecution’s case was supported by independent witness accounts, the recovery of weapons, and medical records, all of which reinforced the veracity of the allegations. The High Court''s reasoning—dismissing the FIR and calling it politically coloured—was found to be unsustainable. The Supreme Court issued a strong caution to High Courts, warning against assessing the credibility of evidence at the pre-arrest bail stage, which is not the appropriate forum for such an inquiry. · Ultimately, the Supreme Court held that the High Court had committed a “manifest error and jurisdictional illegality” in granting anticipatory bail, and therefore set aside its order, reaffirming the statutory bar under the SC/ST Act.
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Supreme Court’s Interim Stay on Select Provisions of the Waqf (Amendment) Act, 2025
· The Supreme Court of India has passed an interim order staying specific provisions of the Waqf (Amendment) Act, 2025, while refraining from imposing a complete stay on the law as a whole. The Act, enacted in April 2025, introduced far-reaching changes in the management and regulation of Waqf properties, sparking widespread constitutional challenges and public debate. · The validity of the Waqf (Amendment) Act, 2025, is currently under scrutiny in the Supreme Court following a consolidated group of approximately 65 petitions. These petitions have been filed by various political leaders and organisations, including MPs Asaduddin Owaisi (AIMIM), Mahua Moitra (TMC), Manoj Kumar Jha (RJD), along with parties such as the YSR Congress and CPI. The central claim advanced by the petitioners is that the amended law violates Article 26 of the Indian Constitution, which guarantees religious denominations the right to manage their own religious affairs, and that it infringes upon the autonomy of the Muslim community in the administration of Waqf properties. · In dealing with the constitutionality of a statute, the Court reiterated the principle established under Article 13(2) of the Constitution — that only the specific provisions of a law that infringe upon fundamental rights can be declared void, not the entire statute. Accordingly, the Court issued a calibrated interim order staying only those provisions that, on a prima facie basis, appeared to be unconstitutional.
Interim Relief Granted by the Supreme Court
· Among the most significant provisions stayed by the Court was Section 3C, which vested District Collectors with powers to declare a Waqf property as government land during an inquiry. The Court found this provision to be prima facie arbitrary and in violation of the principle of separation of powers. As an interim safeguard, the Court directed that such properties shall continue to retain their Waqf status during the pendency of the inquiry, that no dispossession shall take place, and that no third-party rights shall be created unless and until the matter is adjudicated by a Waqf Tribunal. · The Court also addressed concerns over the composition of Waqf Boards and the Central Waqf Council, which, under the amended law, permitted a non-Muslim majority. To prevent ambiguity and potential violation of the community''s right to religious self-management, the Court issued a direction capping non-Muslim representation: no more than four out of 22 members in the Central Waqf Council, and no more than three out of 11 members in State Waqf Boards, may be non-Muslims. · Another provision stayed was the five-year rule requiring that only Muslims who had actively practised Islam for at least five years could create a Waqf. The Court found this criterion problematic and held that the stay would continue until the government establishes a clear regulatory mechanism for determining religious practice, which is inherently subjective and susceptible to misuse.
Provisions That Were Not Stayed
· Despite strong opposition from petitioners, the Court declined to stay the abolition of the doctrine of “Waqf by Use”, which had allowed land that had been used over time for Muslim religious or charitable purposes to be deemed Waqf even in the absence of formal registration. Petitioners argued that the omission of this principle undermines historical religious usage and community traditions. However, the government countered that this doctrine was being exploited to regularise encroachments on government land. The Court held that it did not find sufficient prima facie grounds to stay this prospective change in law. · Another contested change was the applicability of the Limitation Act to claims involving Waqf properties. Under the earlier 1995 Act, Waqfs were exempt from limitation periods, allowing them to pursue recovery of encroached properties at any time. The 2025 amendment removed this exemption, requiring Waqfs to act within specified legal time limits. The Court endorsed this change, observing that it corrected an imbalance and addressed earlier discriminatory treatment in property litigation.
Broader Legal and Constitutional Concerns
· The case raises deeper issues around the intersection of property rights, religious freedom, and secularism. Notably, the Court''s decision to uphold the exclusion of non-Muslims from creating Waqfs goes against historical precedents such as Motishah v. Abdul Gaffar (1956), where the Nagpur High Court had recognised the right of non-Muslims to establish Waqfs. Critics argue that such restrictions undermine the broader concept of philanthropic endowments and limit the use of property for secular purposes like schools, hospitals, and public welfare. · Moreover, the requirement that officials determine whether someone is a “practising Muslim” before permitting the creation of a Waqf introduces the problematic idea of the state acting as arbiter of personal faith — a role that runs counter to the secular ethos of the Constitution. While the Waqf framework faces scrutiny, similar endowment laws for Hindu, Sikh, Buddhist, and Jain communities also contain specific exclusions and regulatory frameworks, raising questions about parity and uniformity in legal treatment. · Some legal scholars have viewed this as a missed opportunity to move toward a Uniform Civil Code (UCC), which could offer a comprehensive and consistent framework for managing religious endowments across all faiths, thereby reducing religious disparities in law and regulation.
Conclusion
The matter remains sub judice, and the interim stay will persist until the Court delivers a final verdict on the constitutional validity of the Waqf (Amendment) Act, 2025. The case presents a complex and significant test of constitutional values — balancing the religious freedoms guaranteed under Article 26 with the imperatives of secular state oversight and the protection of property rights. The eventual judgment is expected to have far-reaching consequences not only for the governance of Waqf properties, but also for minority rights, religious autonomy, and the principle of separation of powers within India’s constitutional framework.
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NITI Aayog’s ‘AI for Viksit Bharat Roadmap’: A National Blueprint for AI-Driven Growth
NITI Aayog has unveiled the ‘AI for Viksit Bharat Roadmap’ along with the ‘Frontier Tech Repository’, as part of its Frontier Tech Hub initiative. This strategic roadmap presents a comprehensive national framework to position Artificial Intelligence (AI) as a critical driver for India’s economic transformation.
Vision and Objectives
· The roadmap outlines a long-term vision to leverage AI for productivity enhancement, sector-specific adoption, and innovation-led R&D. The central objective is to bridge 30–35% of India’s projected growth gap and enable sustained GDP growth of over 8% by 2035. To achieve this, the approach focuses on accelerating AI adoption in high-impact industries, deploying generative AI to transform R&D, and building a robust infrastructure of data, compute power, talent, and governance to enable inclusive growth. · The roadmap emphasizes AI’s transformative potential, estimating that it could contribute $500–600 billion to the national GDP by 2035 through enhanced productivity and operational efficiencies. Sectoral priorities have been clearly defined: banking and manufacturing are projected to derive 20–25% of their GDP from AI, while the pharmaceutical and automotive sectors are seen as ripe for leapfrogging innovation through AI integration. · India is also positioning itself to become the “Data Capital of the World” by establishing trusted, anonymized data ecosystems. Initiatives like AI Kosh, sectoral data grids, and integration with Digital Public Infrastructure (DPI) such as UPI, Aadhaar, ABHA, and Account Aggregator will facilitate scalable AI deployment. · The roadmap places significant emphasis on building an AI skilling ecosystem. Proposals include launching an AI Open University, creating AI Chairs at premier institutions, introducing national certification programs, and reskilling the existing workforce to bridge talent gaps. Generative AI is expected to revolutionize R&D, with projections suggesting it could reduce drug discovery timelines by 60–80%, accelerate automotive design validation, and lower innovation costs substantially. · The accompanying Frontier Tech Repository includes over 200 case studies across sectors like agriculture, education, healthcare, and national security, offering practical models for states and districts. Additionally, the Frontier 50 Initiative aims to support 50 aspirational districts in deploying frontier technologies to achieve full service saturation. To foster competitive spirit and innovation in governance, the Impact Awards will recognize the top three states leveraging technology across governance, health, education, and livelihoods. · India’s demographic edge, particularly its large STEM workforce, positions it well to lead in AI development and global service exports. Combined with the scale and integration of DPI and the creation of AI Kosh backed by a 38,000+ GPU compute network, India could emerge as a global hub for AI R&D. Sectors like manufacturing, pharmaceuticals, and auto components, when AI-enabled, can significantly enhance India’s participation in global value chains. · Furthermore, inclusive AI adoption in agriculture, health, and education is projected to improve public service delivery in rural and underserved areas, addressing long-standing development gaps.
Challenges Hindering AI Scale-Up
· Despite the ambitious vision, several structural and operational challenges remain. There is a marked shortage of high-end AI researchers and professionals trained in applied AI. India’s data ecosystem is fragmented, lacking standardized, privacy-compliant, sectoral frameworks for data sharing. Compute infrastructure also presents a bottleneck, with shortages of GPUs and underdeveloped edge-cloud networks. · Regulatory uncertainty adds to the complexity. Issues such as intellectual property rights for AI-generated drugs and cybersecurity compliance for AI systems remain unresolved. Moreover, the cost barrier may leave out MSMEs and smaller financial institutions, creating an adoption divide that could widen existing inequalities in the tech landscape.
Future Roadmap and Strategic Imperatives
· The path forward requires swift execution of the National AI Mission, coupled with regular performance monitoring. There is a need to develop AI-ready infrastructure, including federated compute networks, industrial parks tailored for AI, and robust data exchanges. · Large-scale skilling is critical. This includes introducing AI micro-credentials, lifelong learning pathways, and programs to attract top talent from the Indian diaspora. Simultaneously, strong AI governance frameworks must be established to ensure ethical use, explainability, risk management, and consumer protection. · Public-private partnerships will be vital in scaling innovation. By incentivising collaboration among startups, academia, and industry, India can foster a thriving ecosystem for AI innovation.
Conclusion
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India Secures International Seabed Authority Licence to Explore Polymetallic Sulphides
· India has taken a significant leap in its pursuit of critical mineral resources by obtaining a unique and unprecedented exploration licence from the International Seabed Authority (ISA). This newly acquired licence authorizes India to explore polymetallic sulphides in the Carlsberg Ridge, a geologically important area located in the northwestern Indian Ocean. In the context of increasing global competition for rare minerals essential to clean energy technologies, this development marks a major milestone in advancing India’s ambitions in deep-sea mining. · In September 2025, India formalized an agreement with the Jamaica-based ISA, granting it the authority to explore polymetallic sulphur nodules spread over an expansive 300,000 square kilometres in the Carlsberg Ridge. These mineral-rich nodules contain vital elements such as manganese, cobalt, nickel, and copper—resources that are crucial for the production of batteries, renewable energy infrastructure, and advanced electronic manufacturing. This agreement is especially significant as it is the first of its kind globally for exploration in this particular region, positioning India at the forefront of accessing the Carlsberg Ridge’s untapped mineral reserves. · India’s involvement in seabed mineral exploration is rooted in a long-standing commitment. It initially obtained exploratory rights in the Central Indian Ocean Basin in 2002 for polymetallic nodules. This was followed in 2016 by a second ISA contract to explore polymetallic sulphides along the Indian Ocean Ridge. These contracts, which remain valid until 2027 and 2031 respectively, have been instrumental in developing India’s technological and institutional capabilities in deep-sea mining operations. Although several surveys have been carried out under these agreements, full-scale mineral extraction has yet to be realized due to ongoing environmental concerns and the prohibitive costs associated with deep-sea mining infrastructure.
Strategic Importance
· The implications of these newly acquired exploration rights extend well beyond the mere acquisition of mineral resources. As demand rises for critical minerals used in electric vehicles, renewable energy storage systems, and high-tech electronics, India’s ability to secure such resources ensures a stronger position within global supply chains. Additionally, geopolitical dynamics have added urgency to this pursuit. Reports indicating the presence of Chinese research vessels in the region played a role in motivating India’s application to the ISA in 2024. In this light, exploration licences are not only instruments for resource extraction but also serve as tools to pre-empt competing claims. · Thus, this strategic acquisition contributes significantly to India’s economic objectives and national security interests alike.
Legal and Environmental Dimensions
· Under the framework of the United Nations Convention on the Law of the Sea (UNCLOS), nations may claim rights to their continental shelves up to 350 nautical miles from their coastlines—or in specific regions like the Bay of Bengal, up to 500 nautical miles. However, territories beyond these limits fall under the purview of the ISA, which oversees resource rights in international waters. · While India’s new exploration rights represent a considerable economic opportunity, they also raise critical environmental questions. Deep-sea mining, particularly in fragile ecosystems, is fraught with ecological risks. Scientists warn that disruption of the seabed could result in irreversible damage to marine biodiversity. Globally, there is still no consensus on stringent safeguards, and as commercial interest grows, regulatory debates continue. India, while advancing its strategic goals, will be expected to align its activities with its environmental responsibilities and international commitments.
Global Context and Future Outlook
At present, a total of 19 countries hold seabed exploration rights under various ISA agreements. India’s new licence, however, stands out both for the scale of its area and the strategic location of the Carlsberg Ridge, which demarcates the boundary between the Indian and Arabian tectonic plates. Looking ahead, India is expected to enhance its domestic capabilities in subsea technology, robotics, and environmental impact assessments. In the broader context of the global transition to clean energy, reliable access to key minerals such as cobalt, nickel, and copper will be crucial for ensuring India’s competitiveness in manufacturing and long-term energy security.
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Why India Resists US Corn Imports
US Commerce Secretary Howard Lutnick recently criticised India’s trade practices, particularly highlighting its unwillingness to import American corn. Lutnick argued that India benefits from preferential access to the US market while maintaining high tariffs on American goods, leading to what he described as a “one-way” trade relationship. Despite India’s large population of 1.4 billion, Lutnick noted that it does not import even minimal amounts of US corn. He labelled this stance as unfair and inconsistent with the principles of “fair and reciprocal trade” promoted by the United States.
India’s Import Policy on Corn and Its Rationale
· In the fiscal year 2024–25, India imported 0.97 million tonnes of corn, sourcing the majority from Myanmar (0.53 mt) and Ukraine (0.39 mt), while US corn imports remained negligible at just 1,100 tonnes. This limited engagement with US corn is rooted in two primary factors. First, India imposes a relatively low import duty of 15% on corn imports up to 0.5 million tonnes; however, any quantity exceeding this threshold is subject to a steep 50% tariff. Second, India enforces a ban on genetically modified (GM) corn, which dominates US corn production. · Additionally, India ranks as the world’s fifth-largest corn producer and is largely self-sufficient. Its corn sector is composed predominantly of small-scale farmers, whose livelihoods the government seeks to protect from foreign corporate competition. These protective measures have become a point of contention for the US, which remains the world’s largest corn producer and exporter. In 2024–25, the United States produced 377.63 million tonnes of corn and exported 71.70 million tonnes, with key uses spanning livestock feed, ethanol production, and processed foods.
Declining Chinese Demand and the US Export Push
· The US has intensified its search for alternative corn markets due to rapidly declining demand from China. In 2022, China was the largest importer of US corn, purchasing $5.21 billion worth out of total US corn exports valued at $18.57 billion. By 2024, US corn exports had fallen to $13.70 billion, with Chinese imports plummeting to just $331 million—far behind Mexico ($5.51 billion), Japan ($2.73 billion), and Colombia ($1.52 billion). The trend has worsened in 2025; between January and July, amid escalating trade tensions, China imported a mere $2.4 million worth of US corn. This dramatic decline in Chinese purchases has intensified US pressure on other markets, including India, and underpins Lutnick’s vocal criticism of India’s restrictive trade policies. · For 2025–26, US corn production is projected to reach a record 427.1 million tonnes, with exports expected to rise to 75 million tonnes. Most of this output originates from Midwestern states such as Iowa, Illinois, and Nebraska. As the US grapples with the loss of its largest corn buyer, it views India’s growing demand as a critical opportunity.
India’s Expanding Demand Versus US Trade Barriers
· India’s corn consumption is forecast to surge in the coming decades due to a growing population, higher per capita income, and rising demand for protein-rich foods such as milk, eggs, fish, and meat. According to projections from the US Department of Agriculture, India’s corn demand is expected to rise from 34.7 million tonnes in 2022–23 to 98 million tonnes by 2040, and further to 200.2 million tonnes by 2050, under a scenario of rapid income growth. This trajectory would necessitate imports of 46 million tonnes and 134 million tonnes, respectively. Even under a more moderate growth scenario, consumption could still reach 93 million tonnes by 2050, requiring 26 million tonnes of imports. · Despite its cost advantage—US corn is the world’s cheapest—America’s efforts to access this future market face serious roadblocks. Approximately 94% of US corn acreage is planted with GM varieties, which are banned in India for both import and cultivation. Although a proposal from NITI Aayog once suggested importing GM corn exclusively for ethanol production, it was ultimately shelved.
Outlook and Political Considerations
· India continues to resist US pressure, standing firm on its domestic agricultural policies, including opposition to GM corn and the maintenance of protective tariffs. Political factors further entrench this position. With assembly elections approaching in Bihar, India’s third-largest corn-producing state (after Karnataka and Madhya Pradesh), the government is unlikely to risk backlash by easing import barriers or permitting GM corn. · Economic considerations also play a role. The cost of US corn is less than ₹15 per kilogram, significantly lower than India’s wholesale price of ₹22–23/kg and its Minimum Support Price (MSP) of ₹24/kg for the 2025–26 season. These price disparities make US corn an attractive but politically sensitive option, as any liberalisation could undercut domestic farmers. · In conclusion, while the US continues to lobby hard for market access, particularly in light of declining exports to China, India remains committed to safeguarding its agricultural sector and public sentiment. The current stance suggests no immediate shift in policy, despite increasing pressure from Washington.
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India’s Outward Foreign Direct Investment and Tax Haven Exposure
· Recent data released by the Reserve Bank of India (RBI) for the financial year 2024–25 reveals that nearly 56% of India’s outward foreign direct investment (OFDI) was routed through low-tax jurisdictions such as Singapore, Mauritius, the UAE, the Netherlands, the United Kingdom, and Switzerland. This trend highlights the evolving nature of Indian firms’ global expansion strategies and raises important questions about tax practices, regulatory frameworks, and the strategic use of offshore financial centres. · Outward FDI refers to investments made by Indian companies to establish or acquire businesses overseas. These investments are often channelled through special purpose vehicles (SPVs) located in jurisdictions known for their favourable tax regimes, business-friendly regulations, and ease of cross-border fund transfers. Such jurisdictions—commonly termed as tax havens or low-tax countries—serve multiple roles beyond tax minimisation, including operational efficiency and investor confidence. · In FY 2024–25, six jurisdictions accounted for over half of India’s OFDI. Singapore emerged as the top destination, receiving 22.6% of total OFDI, followed by Mauritius (10.9%) and the UAE (9.1%). These three alone captured more than 40% of India’s total outward investment. A significant portion—close to 60%—of the investments made through these destinations were intended for the formation of joint ventures, suggesting that Indian firms are using these locations as strategic hubs for international partnerships and global fundraising rather than merely as tax shelters.
Implications and Concerns
· The concentration of OFDI in low-tax jurisdictions raises several implications. From a tax policy perspective, it brings up concerns related to round-tripping—where domestic funds are routed abroad and reinvested in India to gain tax benefits—as well as broader issues of base erosion and profit shifting (BEPS). These practices can undermine the integrity of India’s tax base and warrant the strengthening of oversight mechanisms. · On the other hand, routing OFDI through these financial centres can improve capital efficiency. Such jurisdictions offer Indian firms easier access to global capital markets and greater flexibility in structuring cross-border deals. For firms operating in highly regulated or high-tariff sectors, setting up operations in countries with favourable regulatory frameworks can provide a strategic edge in global competition. · The growing reliance on these jurisdictions also underscores the need for clear and robust FDI and tax treaty frameworks to ensure that the benefits of globalisation are not compromised by regulatory arbitrage. Balancing tax transparency with the need to support Indian firms in their globalisation efforts remains a delicate policy challenge.
Conclusion
India’s outward FDI patterns reflect a complex interplay of strategic business considerations, regulatory environments, and global tax structures. While the use of low-tax jurisdictions can facilitate investment and operational flexibility, it also poses significant risks related to tax avoidance and regulatory evasion. Going forward, India must strengthen its tax treaties, enhance regulatory oversight, and encourage greater transparency in overseas investments—without stifling the global ambitions of its domestic enterprises.
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Indian Dairy Sector: A Critical Engine of Rural Livelihood and National Food Security
India’s refusal to open up its dairy sector has emerged as a major stumbling block in the ongoing India–U.S. trade negotiations. The Indian government continues to resist external pressure, arguing that liberalisation poses a threat to both farmer livelihoods and national milk self-sufficiency. This stance is rooted in the historical evolution and strategic importance of India’s dairy industry, which has undergone a remarkable transformation since the launch of Operation Flood (1970–1996). This landmark initiative turned India from a milk-deficient country into the world’s largest producer, now contributing 26% of global milk output.
Current Landscape of the Dairy Sector
As of 2024–25, India’s milk production has reached 248 million metric tonnes (MMT), with domestic consumption closely matching at 243 MMT, indicating a state of self-sufficiency. The sector supports over 80 million smallholder farmers, most of whom rear just 3–4 cows per household. Despite its massive scale, India’s dairy productivity remains relatively low, with per-cow yields at just one-eighth of levels seen in the U.S. or New Zealand. The supply chain is heavily fragmented, with 70% of marketed milk passing through unorganised channels and only 30% being handled by formal co-operatives and private dairies.
Socio-Economic Significance
Dairy occupies a central role in India''s agricultural economy, contributing 31% to agricultural GDP—more than any single crop including cereals, pulses, or oilseeds. It serves as a backbone of rural livelihoods, particularly for women, offering a steady income stream that remains resilient even during agricultural downturns or droughts. Beyond income generation, dairy plays a crucial role in ensuring nutrition security by providing affordable access to protein, calcium, and essential micronutrients, especially for India’s largely vegetarian population. Moreover, the sector acts as a socio-economic equaliser by enabling landless and marginal farmers to participate in income-generating activities. It is also a key rural employment engine, with strong multiplier effects in allied sectors such as transport, retail, and milk processing.
India’s Reluctance to Liberalise the Dairy Market
· India’s resistance to opening up its dairy sector is driven by multiple interlinked factors. The foremost concern is the protection of its farmers. Any reduction in import tariffs could lead to an influx of cheaper foreign dairy products, driving down procurement prices and compelling small farmers to abandon dairy farming. Another key issue is the preservation of self-sufficiency; increased reliance on imports could erode domestic production capacity, leading to future shortages and price instability. · There are also significant socio-political dimensions. Dairy acts as a buffer against rural distress, and sudden exposure to international market forces could destabilise local economies, triggering social unrest. Moreover, India’s dairy industry is still in the process of maturing. Lacking economies of scale and technological efficiency, it remains vulnerable to competition from well-established global players. This is compounded by the political sensitivity of cooperative dairy institutions such as Amul, Nandini, and Verka, which hold deep roots in rural vote banks and are integral to regional political dynamics.
Global Trade Context
· Globally, there is an oversupply of dairy, with producers in the U.S., European Union, and New Zealand facing stagnant domestic demand. These countries are eyeing India as a lucrative export destination. Consequently, dairy market access has become a major sticking point in India–U.S. Free Trade Agreement (FTA) negotiations. While India maintains high tariffs to shield its domestic sector, its dairy exports—particularly of ghee, butter, and milk powder—have doubled over the past three years, with key markets including Bangladesh and the UAE. · Despite these gains, Indian producers face intense competition from multinational corporations such as Lactalis, Fonterra, and Danone, which possess vast surplus capacities and deep financial reserves. Liberalising the sector could enhance India’s bargaining power in broader trade negotiations, but it also entails the risk of a rural economic backlash if domestic producers are undercut by global giants.
Challenges Facing India’s Dairy Sector
India’s dairy sector faces several structural and operational challenges. Low per-animal productivity continues to undermine cost competitiveness and restrict export potential. The reliance on paddy-straw feed, coupled with unhygienic animal housing and rising heat stress, further reduces milk yield and compromises animal health. Breeding inefficiencies persist, with limited adoption of artificial insemination and minimal use of sex-sorted semen to improve the yield potential of progeny. Supply chain inefficiencies are also a major bottleneck. The dominance of the unorganised sector results in poor cold-chain infrastructure, high spoilage rates, and limited value addition. Additionally, the sector remains underfunded—despite contributing nearly one-third of the agricultural GDP, it receives only 4% of the overall agricultural budget.
Proposed Reform Agenda
· Addressing these structural deficiencies requires a multifaceted reform approach. Enhancing productivity is a priority, which involves promoting balanced feed practices, region-specific breed selection, and expanding access to IVF and sex-sorted semen to improve reproductive efficiency and yield outcomes. · Infrastructure development is equally critical. The establishment of cluster-based dairy parks, chilling units, and mechanised milking systems can improve milk quality and reduce post-harvest losses. Encouraging farmer-producer organisation (FPO)-led aggregation will help achieve economies of scale, making smallholder operations more viable. · On the policy front, a proportional increase in budgetary allocation is necessary to align with the sector’s economic contribution. This should be complemented by greater access to credit and insurance for smallholders to mitigate risks. · Expanding the value chain through increased processing of high-margin products like cheese, whey, and butter can enhance profitability. At the same time, building strong Indian dairy brands—particularly around niche segments like “A2 milk” and organic dairy—can increase global market share. · Equally important is behavioural change. Farmers must be encouraged to treat dairy as a primary business rather than a supplementary income source. Investments in farmer training and extension services will be crucial in building awareness and capacity.
Conclusion
India’s dairy sector is far too important—economically, nutritionally, and socially—to be left vulnerable to global price shocks. While protective measures are necessary to shield small farmers from premature exposure to international competition, these must be paired with far-reaching structural reforms aimed at boosting productivity, strengthening value chains, and enhancing competitiveness. With the right balance of investment, innovation, and policy support, India has the potential not only to safeguard rural livelihoods but also to emerge as a global dairy powerhouse.
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Prelims Bytes
Red Fort: Environmental Threats and Historical Significance
· A recent study has revealed that the Red Fort, a prominent symbol of India''s architectural heritage, is experiencing the formation of a ‘black crust’ on its walls. This phenomenon has been attributed to the high levels of air pollution in Delhi. The blackened deposits are damaging the structure''s red sandstone exterior, raising concerns about the long-term preservation of this iconic monument. · The Red Fort, also known as Lal Qila, is a Mughal fort situated in Delhi. Originally named Quila-e-Mubarak (Blessed Fort), it stands along the banks of the Yamuna River, whose waters once supplied the moats surrounding the fort. Commissioned in 1639 by the Mughal emperor Shah Jahan as part of his new capital Shahjahanabad, the fort was designed by architects Ustad Ahmad Lahauri and Ustad Hamid. Its name derives from the massive red sandstone walls that enclose it. The Red Fort is located adjacent to Salimgarh Fort, an earlier structure built by Islam Shah Suri in 1546, and together they form the Red Fort Complex. · Serving as the residence of Mughal emperors for nearly two centuries until 1857, the Red Fort represents a pinnacle of Mughal architecture. Recognising its cultural and historical significance, UNESCO declared it a World Heritage Site in 2007. Today, it plays a vital role in India’s national identity, as the Prime Minister hoists the national flag and addresses the nation from its ramparts every year on August 15, marking Independence Day. · The architecture of the Red Fort showcases an amalgamation of Persian, Timurid, and Indian traditions. The fort’s formidable sandstone walls rise to a height of 75 feet (23 metres) and enclose a complex of palatial buildings, including entertainment halls, intricately designed balconies, baths, indoor canals, and geometrically arranged gardens. It also houses a mosque of fine architectural merit. Though its layout follows Islamic design patterns, the pavilions within reflect distinct Mughal innovations. · The fort is octagonal in shape, with its north-south axis longer than its east-west axis. Two of the most notable structures are the Diwan-i-‘Am (Hall of Public Audience), supported by sixty red sandstone pillars and topped with a flat roof, and the more intimate Diwan-i-Khas (Hall of Private Audience), a pavilion crafted from white marble. The use of marble, intricate floral motifs, and the presence of double domes exemplify the refined aesthetic of later Mughal architecture. The complex has two principal gates: Lahore Darwaza on the western side and Delhi Darwaza on the southern side. · The degradation caused by pollution is a pressing issue, as it threatens not only the structural integrity of the monument but also its aesthetic appeal and cultural symbolism. Preservation efforts will require both environmental reforms and conservation initiatives to protect this historic site for future generations.
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Nankana Sahib and Pilgrimage Restrictions
Several political parties and Sikh organisations have recently appealed to the central government to revisit its directive advising state governments against processing applications for pilgrimage to Nankana Sahib in Pakistan. This pilgrimage is of particular importance during the birth anniversary celebrations of Guru Nanak Dev.
Historical and Religious Significance of Nankana Sahib
· Nankana Sahib is a city situated in Pakistan''s Punjab province and holds immense spiritual significance for the Sikh community. It is revered as the birthplace of Guru Nanak, the founder of Sikhism. Originally named Rai-Bhoi-Di-Talwandi, it was renamed Nankana Sahib by Rai Bhullar Bhatti, the grandson of the village’s founder, Rai Bhoi, to honour Guru Nanak’s birth. · Guru Nanak Dev Ji spent his formative years in this town, and it is from here that his spiritual journey and divine mission began. The city is home to the Gurdwara Janam Asthan, also known as the Nankana Sahib Gurdwara, which stands on the site where Guru Nanak is believed to have been born in 1469. The shrine was commissioned by Maharaja Ranjit Singh following his visit to Nankana Sahib in 1818–19 after the Battle of Multan. · In addition to Gurdwara Janam Asthan, Nankana Sahib houses several other significant gurdwaras, each marking key episodes from Guru Nanak''s life. These include Gurdwara Patti Sahib, Gurdwara Bal Leela, Gurdwara Mal Ji Sahib, Gurdwara Kiara Sahib, and Gurdwara Tambu Sahib. Moreover, the town also contains gurdwaras commemorating Guru Arjan, the fifth Sikh Guru, and Guru Hargobind, the sixth. Guru Hargobind is believed to have visited the town in 1621–22, further cementing its religious importance.
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Seven New Indian Sites Added to UNESCO Tentative List
Context
India has added seven new natural sites to UNESCO’s Tentative List—a prerequisite for being considered for inclusion in the World Heritage List. With these additions, India’s Tentative List now includes a total of 69 properties.
New Additions to the Tentative List
The newly added sites are:
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WTO Agreement on Fisheries Subsidies: A Step Toward Ocean Sustainability
Core Objectives and Provisions
· The agreement prohibits subsidies that support illegal, unreported, and unregulated (IUU) fishing, overfished stocks, and unregulated high seas fishing. It mandates transparency, requiring member states to report on subsidies and fishing activities. An implementation fund of over $18 million has been established to support developing countries and least-developed countries (LDCs). · A permanent Committee on Fisheries Subsidies will facilitate technical assistance, compliance review, and policy dialogue. This agreement is significant not only for ocean governance but also for global economic equity, as it curbs the advantage of heavily subsidised fleets from large fishing nations. · Given that over 35% of the world’s fish stocks are overexploited, this agreement is a critical step in ensuring marine biodiversity, sustainable fishing practices, and the protection of communities reliant on fisheries for their livelihoods. |
INS Nistar Participates in Exercise Pacific Reach 2025
· The Indian Navy’s indigenously designed and constructed Diving Support Vessel (DSV), INS Nistar, is currently participating in Exercise Pacific Reach 2025 in Singapore. This biennial multinational naval exercise brings together more than 40 countries and is conducted in two distinct phases — harbour and sea. · During the harbour phase, participating navies engage in discussions centred around submarine rescue systems. The agenda includes Subject Matter Expert Exchanges (SMEE), a medical symposium, and cross-deck visits between ships of different nations. The sea phase involves active submarine intervention and rescue operations in the South China Sea, where INS Nistar and the Submarine Rescue Unit (East) are playing a critical role. · Commissioned on July 18, 2025, INS Nistar was developed by Hindustan Shipyard Limited (HSL), Visakhapatnam, as part of the Ministry of Defence’s Aatmanirbhar Bharat initiative. The vessel functions as the mothership (MoSHIP) for Deep Submergence Rescue Vehicles (DSRV), equipped with advanced systems like Side Scan Sonar and remotely operated vehicles (ROVs). These tools are crucial for deep-sea diving, rescue missions, and locating submerged vessels. · The ship’s Integrated Saturation Diving System (ISDS) enables deployment of divers at depths up to 300 metres for underwater repairs and salvage. The ROVs and the Integrated Platform Management System (IPMS) support underwater surveillance and efficient onboard operations. Its submarine rescue system is particularly vital during emergencies, ensuring the timely recovery of personnel from disabled submarines.
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India to Host 5th Coast Guard Global Summit (CGGS) in 2027
· India will host the 5th edition of the Coast Guard Global Summit in Chennai in 2027. This global gathering aligns with the Indian Coast Guard’s Golden Jubilee and is positioned as a premier forum for international maritime cooperation. · The summit will convene Coast Guard forces, maritime security agencies, and global organisations to deliberate on maritime challenges, foster trust, promote information sharing, and enhance coordinated responses to threats at sea. · A notable feature will be the International Coast Guard Fleet Review, designed to showcase maritime strength and underscore India''s commitment to the SAGAR (Security and Growth for All in the Region) initiative.
About the Indian Coast Guard (ICG)
· Operating under the Ministry of Defence, the Indian Coast Guard is India’s fourth armed force and its primary maritime law enforcement and search-and-rescue entity. Its inception was influenced by the recommendations of the Nag Committee (1970) and the K.F. Rustamji Committee (1974). Formally established on 1 February 1977 with an initial fleet of two frigates and five patrol boats transferred from the Navy, it was inaugurated on 19 August 1978 by then Prime Minister Morarji Desai. Its first Director General was Vice Admiral V.A. Kamath. · Key responsibilities of the ICG include enforcing maritime laws, combating smuggling and poaching, conducting search and rescue operations, protecting marine environments, securing offshore installations like Mumbai High, and patrolling India’s vast Exclusive Economic Zone (2.01 million sq km) in coordination with the Navy and other security agencies.
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Rediscovery of Red Coral Kukri Snake Near Pilibhit Tiger Reserve
· In a significant find for herpetology, the rare Red Coral Kukri Snake (Oligodon kheriensis), last reported in 1936, was recently discovered trapped in a net near the Pilibhit Tiger Reserve in Uttar Pradesh. This nocturnal and fossorial (burrowing) species is one of the rarest non-venomous snakes in the Indian subcontinent. · The snake is characterised by its striking appearance — a uniform bright coral-red body with a yellowish or pinkish underside and an obtusely pointed snout. It derives its name from the shape of its curved teeth, which resemble a kukri, the traditional Nepalese knife. · Its distribution spans the lowlands (below 1500 feet) along the Himalayan foothills across Uttarakhand, Nepal, northern Uttar Pradesh, Bihar, West Bengal, Sikkim, and western Assam. Despite its rarity, the IUCN classifies it as Least Concern, and it is listed under Schedule IV of the Wild Life Protection Act in India. · The Pilibhit Tiger Reserve, where the snake was found, lies along the India-Nepal border and forms part of the Terai Arc Landscape. It is a critical ecosystem, comprising dense sal forests, tall grasslands, swamps, and rivers such as the Gomti (which originates here), Sharda, Chuka, and Mala Khannot. The area experiences a hot and dry climate and includes the Sharda Sagar Dam, which stretches over 22 km along the reserve’s boundary.
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Lake Natron: Conservation vs Industrial Development
· In a significant move for ecological preservation, the government of Tanzania has suspended plans for large-scale soda ash mining at Lake Natron, a unique and ecologically sensitive salt lake located along the Tanzania-Kenya border. · Situated in the eastern arm of the Great Rift Valley, Lake Natron is known for its striking red coloration caused by its high alkalinity. The lake contains deposits of salt, caustic soda, and magnesite and is mainly fed by the Ewaso Ng’iro River from central Kenya. · Lake Natron serves as the only reliable breeding ground for Lesser Flamingos in Africa, supporting up to 75% of the global population. The area is also home to unique geological features, such as the Shompole volcano, which overlooks the lake from the northern end. · Designated as a Ramsar Site of International Importance in 2001, Lake Natron faces multiple threats, including pollution, agriculture, and climate change. The proposed soda ash project had raised alarms among conservationists, who feared irreversible ecological damage. The recent suspension of the project is seen as a crucial step in balancing developmental ambitions with ecological integrity.
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Legal Provisions for Acquisition of Animals in India
A Supreme Court-appointed Special Investigation Team (SIT) has recently confirmed that the acquisition of animals by Reliance-owned Vantara adheres to all relevant statutory requirements. The SIT found no legal violations, affirming that the procedures followed were in compliance with India’s wildlife protection and trade regulations.
Wildlife (Protection) Act, 1972: Framework and Objectives
· Enacted by the Indian Parliament, the Wildlife (Protection) Act, 1972 is a comprehensive legal instrument designed to safeguard the country’s wildlife and natural habitats while regulating human interactions with wild species. The Act''s primary aim is to ensure the conservation of wild animals, birds, and plants and to maintain ecological balance by preventing the extinction of species. It also regulates hunting practices and the trade and possession of wildlife products. · A critical feature of the Act is its classification of species into six schedules (later amended to four under the Wildlife Protection (Amendment) Act, 2022), each offering different levels of protection. Schedule I and II species receive the highest protection, while Schedule VI deals with certain plant species and their cultivation. The legislation also provides for the establishment of protected areas, including National Parks, Wildlife Sanctuaries, Conservation Reserves, and Community Reserves. · Hunting of protected species is strictly banned, except under exceptional circumstances such as scientific research or population control. The Wildlife Crime Control Bureau (WCCB) has been instituted to tackle illegal wildlife trade and associated offences. In addition, Chapter IV-A of the Act governs the recognition, regulation, and management of zoos through the Central Zoo Authority. Penalties under the Act are stringent, particularly for offences involving Schedule I species, and include substantial fines and imprisonment.
Legal Provisions Governing Animal Acquisition
· The acquisition, possession, or transfer of protected wild animals is governed by detailed legal provisions under the Wildlife (Protection) Act, 1972. Section 40 and Section 42 mandate that any individual or organisation intending to acquire a scheduled wild animal—or any article derived from such an animal—must first obtain prior approval from the Chief Wildlife Warden (CWW). Section 43 explicitly prohibits the sale or offer for sale of these animals without the requisite permission. Furthermore, Sections 49 and 49B deal with the regulation of trade and transport of scheduled species, ensuring that such activities are not associated with poaching, smuggling, or illegal procurement. · The acquisition process involves a formal application to the CWW, specifying the species, purpose, and source of the animal. This is followed by a thorough verification of the source, which must be legal and may include domestic zoos, recognised rescue centres, or approved foreign institutions. Upon successful verification, permits or licenses are issued either under the Zoo Rules, 2009 for recognised zoos, or under international frameworks such as CITES (Convention on International Trade in Endangered Species) for transboundary imports and exports. · The law also mandates that the transport of live animals comply with the International Air Transport Association (IATA) Live Animal Regulations. Upon arrival at the destination, animals are required to undergo veterinary quarantine to ensure health and safety. Moreover, the acquiring entity must maintain comprehensive records and submit periodic reports to the authorities, ensuring transparency and traceability in wildlife management.
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Tipeshwar Wildlife Sanctuary (TWS): A Biodiversity Haven in Maharashtra
Five individuals were recently arrested for illegally poaching an Indian Pangolin in the Tipeshwar Wildlife Sanctuary (TWS), located in the Yavatmal district of Maharashtra. This incident underscores the ongoing threat of poaching even in well-monitored conservation areas.
Overview and Significance
· Tipeshwar Wildlife Sanctuary is a protected ecological zone and designated tiger reserve in Maharashtra, notable for its rich biodiversity and high tiger density. Located in the Pandarkawada region of Yavatmal district, the sanctuary spans an area of 148.63 square kilometres. It is named after the local deity Tipai, whose shrine is situated in Tipeshwar village. While less crowded than Tadoba National Park, TWS offers an equally enriching safari experience. · Declared a wildlife sanctuary under the Wildlife (Protection) Act, 1972, Tipeshwar has gained prominence through dedicated conservation efforts. Notably, it was home to Tigress Avni, the subject of Vidya Balan’s film Sherni. Since 2010, targeted conservation measures have helped increase the sanctuary’s tiger population from just 3 to over 20 individuals. · Tipeshwar’s forest is predominantly teak (about 60%) and red sandalwood (approximately 15%). The ecosystem also supports a wide variety of indigenous plant species, including Mahua, Achar, Lendia, and Tiwas, along with around 250 species of bamboo. · Its fauna includes apex predators and a variety of mammals such as tigers, leopards, sloth bears, hyenas, jackals, chital, sambar, wild boars, and Indian pangolins. The sanctuary is also home to 26 reptile species and several rare mammals like the Rusty Spotted Cat and the False Vampire Bat. · For birdwatchers, TWS is a treasure trove, offering sightings of 256 species, including residents, migratory birds, and rarities. Notable species include the Painted Francolin, Rain Quail, Lesser Whistling Duck, and Eurasian Wryneck. The sanctuary also boasts an impressive butterfly diversity, with 97 recorded species, including rare varieties such as the Black Rajah and Peacock Royal. · Tipeshwar has significant potential for ecotourism, offering jeep safaris, nature trails, and rural tourism activities. These not only enhance visitor experiences but also contribute to local livelihoods by promoting community engagement in conservation-linked tourism.
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CCMB''s Discovery on White Blood Cell Adaptation
· Researchers at the Centre for Cellular and Molecular Biology (CCMB) in Hyderabad have made a breakthrough discovery regarding how white blood cells (WBCs) adapt their internal skeletons to fight pathogens. This research sheds new light on the immune system’s dynamic capabilities and could have major implications for developing new therapeutic strategies in immunology and infectious disease management. · The CCMB, a premier institution under the Council of Scientific and Industrial Research (CSIR) and the Ministry of Science and Technology, was established in 1977. It is recognised globally for its research excellence in molecular biology and cellular mechanisms. · Located in Hyderabad, Telangana, CCMB conducts cutting-edge research across various domains including genetics, immunology, biotechnology, molecular medicine, and bioinformatics. Its work is both fundamental and translational, with applications in medical research, agriculture, and environmental sustainability. · The centre is equipped with state-of-the-art facilities such as high-throughput genomic platforms and a bioinformatics hub. As a designated “Centre of Excellence” by the Global Molecular and Cell Biology Network, UNESCO, CCMB also offers extensive training and collaborates with international institutions to advance scientific innovation.
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Polypropylene
· The Prime Minister of India recently laid the foundation stone for a polypropylene (PP) plant at Numaligarh Refinery Limited (NRL) in Golaghat, Assam. This initiative is expected to boost regional industrial development and support India’s goal of self-reliance in petrochemicals. · Polypropylene is a thermoplastic polymer formed through the addition polymerisation of propylene. It belongs to the polyolefin family and is known for its versatility, light weight, flexibility, and resistance to heat and chemical corrosion. These qualities make it ideal for packaging, consumer goods, medical equipment, and electrical insulation. · Its properties include high flammability, low density, and excellent insulating capabilities. Due to its resistance to chemical and biological degradation, polypropylene is widely used in the manufacture of cleaning product containers, electrical casings, and plastic packaging materials.
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Swasth Nari, Sashakt Parivar Abhiyaan and Poshan Maah 2025
The Prime Minister is set to inaugurate the ‘Swasth Nari, Sashakt Parivar Abhiyaan’, India’s most extensive health mobilisation drive focused on women and children, in conjunction with the launch of the 8th Poshan Maah.
Comprehensive Campaign Structure
· This initiative is a unified government and societal effort that integrates healthcare, nutrition, and awareness under a single umbrella. Jointly led by the Ministry of Health and Family Welfare (MoHFW) and the Ministry of Women and Child Development (MoWCD), it is closely aligned with the objectives of Poshan Maah 2025. · The campaign aims to ensure the early detection and timely treatment of a range of health conditions, including non-communicable diseases (NCDs), various cancers, tuberculosis, anaemia, and sickle cell disease. It also seeks to promote awareness on nutrition, menstrual hygiene, mental health, and the adoption of healthier lifestyles. · From 17 September to 2 October 2025, over one lakh health camps will be organised nationwide, spanning community health centres, district hospitals, and Ayushman Arogya Mandirs. These camps will offer specialised services in fields such as gynaecology, paediatrics, ophthalmology, ENT, dentistry, dermatology, and psychiatry. · Screenings will cover blood pressure, blood sugar, BMI, and oral cavity checks, alongside breast and cervical cancer detection. Anaemia testing, iron-folic acid supplementation, deworming, and dietary education through recipe demonstrations and the FSSAI Eat Right campaign will be included.
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Frontier 50 Initiative: Accelerating Tech in Underserved Regions
· NITI Aayog has launched the Frontier 50 Initiative to deploy cutting-edge technologies in 50 Aspirational Districts or Blocks, reinforcing its vision for a developed India by 2047. · This flagship initiative, under NITI Aayog’s Frontier Tech Hub, aims to fast-track the adoption of technologies such as artificial intelligence (AI), Internet of Things (IoT), drones, and blockchain in underserved regions. The goal is to improve service delivery, productivity, and overall citizen well-being by 2047. · The selected districts and blocks will implement proven use-cases from the Frontier Tech Repository in priority sectors like agriculture, education, healthcare, and livelihoods. Local administrations will receive capacity-building support to ensure successful integration and scale-up. · The initiative also emphasises public-private partnerships, inviting collaboration from startups, academic institutions, and industries to co-create and deploy solutions. A performance monitoring framework with defined Key Performance Indicators (KPIs) will track service saturation and measurable impact.
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Involution in China’s EV Industry
· China''s electric vehicle (EV) sector is currently grappling with a phenomenon known as “involution,” which refers to a cycle of excessive competition that leads to diminishing returns and industry instability. · Derived from the Latin word involūtiōn-em, meaning “to turn inward,” and popularised academically by anthropologist Clifford Geertz in his 1969 study Agricultural Involution, the term now describes an intense form of internal competition. In the context of EVs, it reflects a scenario where 120–130 manufacturers engage in relentless price wars, often selling vehicles below cost, leading to severe financial strain and mounting inventories. · The situation has been exacerbated by high tariffs imposed by the US and EU, which have reduced export avenues, forcing Chinese firms to dump excess supply in the domestic market. The resulting hyper-competition has triggered government concern over potential economic instability. · This involutionary cycle is pushing smaller firms toward bankruptcy, leading to industry consolidation and possible job losses. Profits have shrunk to levels that threaten future investments in research and development. The overflow of cheap Chinese EVs into emerging markets also risks destabilising local auto industries worldwide.
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National Policy on Geothermal Energy: India’s New Renewable Frontier
The Ministry of New and Renewable Energy has released India’s first-ever National Policy on Geothermal Energy, marking a strategic shift to diversify the country''s clean energy portfolio and supporting its commitment to achieving net-zero carbon emissions by 2070.
· Policy Scope and Vision: The policy identifies 381 geothermal hot springs across 10 provinces as potential zones for harnessing geothermal energy. It supports both high-enthalpy applications (for electricity generation) and low to medium-enthalpy uses (for heating, cooling, agriculture, and industry). The framework covers the entire lifecycle of geothermal projects—from resource identification and assessment to end-use applications, including hybrid systems and the innovative repurposing of decommissioned oil and gas wells for geothermal extraction. · Sustainability and Regulatory Mechanisms: To ensure environmental sustainability, the policy mandates safe reinjection of geothermal fluids, compliance with safety regulations, and mandatory stakeholder consultation in ecologically sensitive areas. A single-window clearance system through state nodal agencies has been proposed to streamline administrative processes. · Investment and Financial Framework: The policy opens the geothermal sector to 100% foreign direct investment (FDI), encouraging domestic innovation and collaboration with oil and gas sectors. It offers a range of financial incentives such as risk-sharing mechanisms, concessional loans, Viability Gap Financing (VGF), green bonds, feed-in tariffs, and blended finance. In addition, fiscal concessions like GST exemptions, tax holidays, accelerated depreciation, and property tax relief have been proposed to attract investment. · Capacity Building and Collaboration: The policy promotes international collaboration and capacity-building initiatives through knowledge sharing, technical training, and peer learning. This approach aims to strengthen India''s geothermal capabilities through global best practices. · Leasing and Data Infrastructure: Exploration leases are to be granted for 3–5 years, while development leases may extend beyond 30 years. Concessional land allotments are envisaged to support project viability. A centralized data repository will be established, with mandatory submission of exploration and production data to improve transparency and inform future policy decisions. · About Geothermal Energy: Geothermal energy harnesses heat from beneath the Earth’s surface—either from natural reservoirs or those created through engineering techniques. This thermal energy, accessible by drilling wells, can be utilised for electricity production, space heating, cooling systems, and other industrial applications. |