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Daily PIB Summaries

PIB Summaries 03 February 2026

Content Transforming India into a Global Biopharma Hub Survey on Migration 2026–27 Transforming India into a Global Biopharma Hub Why in News? — Budget 2026–27 Biopharma Push Union Budget 2026–27 launched Biopharma SHAKTI with ₹10,000 crore over five years to boost biologics–biosimilars ecosystem, marking shift from generics toward innovation-led, high-value pharmaceutical manufacturing and exports. Policy targets 5% global biopharma market share by integrating manufacturing scale, skilled workforce, clinical infrastructure, and regulatory reforms, projecting biopharma as engine for health security, technology leadership, and export competitiveness. Relevance GS III — Economy Industrial Policy: ₹10,000 cr Biopharma SHAKTI, PLI, Bulk Drug Parks. High-value Manufacturing & Exports: Target 5% global share. Import Substitution: Reduced biologics/API dependence. GS III — Science & Technology Biotech Innovation: Genome India, NBM, BIRAC ecosystem. R&D & Startups: Bio-incubators, tech transfers. IPR Issues: TRIPS vs affordability. Basics — Understanding Biopharma What is Biopharma? Biopharmaceuticals are medicines produced using living cells, microbes, or biological systems, including vaccines, monoclonal antibodies, gene therapies, recombinant proteins, modern insulin for targeted treatment of complex diseases. Unlike small-molecule drugs, biologics are structurally complex, R&D-intensive, temperature-sensitive, needing advanced bioprocessing, cold-chain logistics, and strict regulatory validation, creating high entry barriers but ensuring superior value addition. Global Context Global pharma industry valued around $1.1 trillion, with biologics as fastest-growing segment due to ageing populations, NCD rise, precision medicine demand, and vaccine innovations after COVID-19. Expiry of patents on blockbuster biologics fuels biosimilars market expansion; countries with regulatory credibility, scale manufacturing, and clinical ecosystems capture larger shares of global pharmaceutical value chains. Constitutional / Legal Dimensions Article 47 mandates State to improve public health; affordable biologics support access to advanced therapies for cancer, diabetes, autoimmune and rare diseases, aligning with Directive Principles. TRIPS-compliant IPR regime balances innovation incentives with public health; compulsory licensing remains legal safeguard ensuring affordability of life-saving biologics and vaccines during emergencies. Governance / Administrative Dimensions Proposal for 1,000+ accredited clinical trial sites expands ethical, quality-compliant research capacity, shortens trial timelines, and strengthens India’s position as global clinical research destination. Strengthening CDSCO with specialised scientific staff improves biologics evaluation, aligns approval timelines with global norms, and enhances regulatory credibility in export markets. Establishing 3 new NIPERs and upgrading 7 existing NIPERs addresses skilled manpower gaps in bioprocess engineering, regulatory science, and translational research. Economic Dimensions India ranks 3rd in pharma production by volume but 14th by value; biopharma push aims shifting toward high-margin, innovation-driven segments, boosting export earnings and technological depth. Domestic biologics manufacturing reduces import dependence on high-value therapies and APIs, improving supply-chain resilience, trade balance, and healthcare sovereignty. PLI, Bulk Drug Parks, and SPI schemes create ecosystem for scale manufacturing, common infrastructure, and WHO-GMP compliance, enabling MSME participation in complex biologics. Social / Ethical Dimensions Rising non-communicable diseases—diabetes, cancer, autoimmune disorders—raise biologics demand; domestic biosimilars improve affordability, equity, and financial risk protection in healthcare. Strong ethics oversight in trials ensures informed consent, patient safety, and data integrity, addressing past concerns and building international trust. Science–Tech / Innovation Dimensions National Biopharma Mission (₹1,500 crore) supports 101 projects, 150+ organisations, 30 MSMEs, generating 1,000+ jobs across vaccines, biosimilars, diagnostics, and devices. Genome India Programme sequencing 10,000 genomes enables precision medicine, predictive healthcare, and population-specific therapies, strengthening genomics-driven innovation. BioE3 Policy promotes biomanufacturing, Bio-AI hubs, and biofoundries across smart proteins, precision biotherapeutics, and climate-linked biotech. Data & Evidence BIRAC established 95 bio-incubation centres and supported nearly 1,000 innovators under BIG, strengthening startup pipeline from discovery to commercialisation. 7,000+ professionals trained in regulatory/IPR, 850+ IP filings, ~120 tech transfers reflect maturing innovation-commercialisation ecosystem. Clinical trials backed by 8 lakh volunteer database enable large-scale studies in oncology, diabetes, and rheumatology. Challenges / Criticisms High capital intensity and long gestation periods deter private investment; startups face funding gaps between research and commercialisation stages. Regulatory capacity constraints and coordination gaps risk approval delays and reputational issues in global markets. Continued reliance on imported high-end equipment and reagents limits true self-reliance. Persistent shortage of experts in bioprocessing and regulatory science shows academia–industry skill mismatch. Way Forward Create mission-mode biomanufacturing clusters integrating R&D, pilot plants, testing, and logistics to reduce entry barriers and accelerate scale-up. Implement single-window digital regulatory systems and harmonise with USFDA/EMA standards for predictability. Expand blended finance and sovereign biotech funds to bridge late-stage funding gaps. Promote global collaborations and vaccine diplomacy aligned with SDGs and health equity. Survey on Migration 2026–27 Why in News?  NSO under MoSPI will conduct Survey on Migration (July 2026–June 2027) to generate updated, nationwide evidence on rural–urban, inter-state, seasonal, and return migration for policy design. Latest comprehensive migration data currently rely on PLFS 2020–21; new survey fills post-pandemic data gaps amid rapid urbanisation, labour mobility, and informal sector shifts. Relevance GS I — Indian Society Urbanisation: Migration-led city expansion. Women & Society: 86.8% female marriage migration. Demographic shifts: Population redistribution. GS II — Polity & Governance / Social Justice Fundamental Rights: Article 19 mobility. Welfare Delivery: ONORC, portability gaps. Data Governance: NSO evidence-based policy. Basics — Migration in India What is Migration? Migration refers to movement of persons across regions for employment, marriage, education, displacement, or livelihood security, shaping labour markets, demographic patterns, and urbanisation trajectories. Includes intra-district, inter-district, and inter-state migration; may be temporary, seasonal, circular, or permanent, each having distinct socio-economic and policy implications. Current Statistical Picture PLFS 2020–21 estimated India’s overall migration rate at 28.9%, indicating that nearly one in three Indians is a migrant by last-residence criteria. Migration rate among males: 10.7% and females: 47.9%, showing strong gender asymmetry rooted in social norms, marriage systems, and labour participation differences. Constitutional / Legal Dimensions Article 19(1)(d) & (e) guarantee freedom to move and reside anywhere in India, forming constitutional basis for internal migration and labour mobility. Inter-State Migrant Workmen Act, 1979 and Code on Occupational Safety, Health and Working Conditions, 2020 aim to protect migrant workers’ wages, safety, and welfare. Migration-linked welfare portability aligns with One Nation One Ration Card (ONORC) ensuring food security for mobile populations. Governance / Administrative Dimensions New survey will capture data on reasons for migration, employment profiles, remittances, and return migration, enabling evidence-based urban planning and labour market policies. Reliable migration data improve targeting in housing, transportation, social security, and skill development, reducing exclusion errors in welfare delivery. Strengthens data-driven governance under Digital India and DBT ecosystem by mapping migrant vulnerabilities and service access gaps. Economic Dimensions Male migration largely employment-driven; 22.8% of male migrants move for jobs, supporting construction, manufacturing, and urban informal sectors critical to GDP growth. Migrant remittances sustain rural consumption, reduce poverty, and smooth income shocks, acting as informal social security for origin households. Labour mobility enhances factor reallocation efficiency, shifting surplus labour from low-productivity agriculture to higher-productivity urban sectors. Social / Ethical Dimensions 86.8% of female migration due to marriage reflects patriarchy-driven mobility rather than economic agency, masking true female labour migration in statistics. Migrants face vulnerabilities—informal housing, job insecurity, lack of identity portability, and social discrimination—raising concerns of dignity and urban inclusion. Seasonal and circular migrants often excluded from PDS, healthcare, and education benefits due to documentation and domicile barriers. Demographic / Urbanisation Link Migration accelerates urbanisation, with cities acting as growth poles; unmanaged influx leads to slums, congestion, and pressure on civic amenities. Young migrant workforce contributes to demographic dividend utilisation but requires skilling, housing, and social protection frameworks. Data & Evidence 28.9% migration rate (PLFS 2020–21) indicates scale of internal mobility in India’s development process. Gender gap—47.9% female vs 10.7% male—highlights social drivers dominating female mobility statistics. Employment-driven migration share among males at 22.8% underscores labour-market pull factors. Challenges / Criticisms Migration data historically underreported due to definitional issues, short reference periods, and invisibility of circular migrants. Policy fragmentation between Centre–States leads to weak portability of welfare and social security benefits. Urban governance often treats migrants as temporary, leading to exclusion from housing, healthcare, and political representation. Gender-blind data classification underestimates women’s economic migration and workforce participation. Way Forward Institutionalise periodic migration surveys synchronized with Census and PLFS for real-time labour mobility insights. Ensure universal portability of welfare—PDS, health insurance, social security—through national migrant databases and digital IDs. Promote migrant-inclusive urban planning with rental housing, hostels, and transit-oriented development. Recognise women’s economic migration explicitly to design gender-responsive skilling and employment policies.

Editorials/Opinions Analysis For UPSC 03 February 2026

Content Wetlands as a national public good Budget 2026–27 & Capex-led Growth Wetlands as a national public good Why in News — World Wetlands Day 2026 ? Global & Indian Context World Wetlands Day 2026 themed “Wetlands and traditional knowledge” highlights community-led conservation; relevant for India where cultural practices historically sustained tanks, floodplains, mangroves, and village ponds. Theme gains relevance amid rapid wetland loss, climate risks, and water stress, positioning wetlands as nature-based solutions for water security, disaster resilience, biodiversity conservation, and livelihood sustainability. Relevance GS I — Geography & Society Wetlands regulate floods, groundwater, and microclimate, making them critical for questions on Indian physical geography, resource distribution, and human–environment interaction. Community-managed tanks, fisheries, and cultural linkages help enrich answers on society–environment relations and traditional knowledge systems. GS III — Environment & Disaster Management Wetlands as nature-based solutions for floods, droughts, and climate adaptation directly relevant for environment, conservation, and disaster-risk-reduction themes. Links to biodiversity conservation, pollution control, and sustainable development. Practice Question “Wetlands are ecological assets but governance liabilities.” Examine with reference to India’s conservation framework and discuss the role of traditional knowledge in wetland conservation in India.(250 Words) Basics — Understanding Wetlands Definition & Types Wetlands are ecosystems where land remains saturated with water seasonally or permanently, including marshes, lakes, mangroves, floodplains, lagoons, and human-made tanks supporting rich biodiversity and hydrological functions. India hosts diverse wetlands—freshwater, coastal, riparian, urban, and high-altitude systems—providing ecological services across climatic zones, from Himalayas to coastal deltas. Ecological Functions Wetlands regulate hydrological cycles by storing floodwater, recharging groundwater, filtering pollutants, stabilising shorelines, and moderating microclimates, making them critical natural infrastructure for climate adaptation. They serve as biodiversity hotspots supporting fish, migratory birds, amphibians, and aquatic flora, contributing to food security, nutrient cycling, and genetic diversity conservation. Traditional Knowledge & Community Linkages Indigenous Systems Tamil Nadu’s kulam tank cascades historically ensured irrigation, groundwater recharge, and drought resilience through community maintenance, illustrating decentralised water governance embedded within local ecological knowledge. Kerala’s kenis in Wayanad, over two centuries old, demonstrate sustainable groundwater access systems supporting drinking needs, rituals, and cultural continuity without ecological over-extraction. Andhra Pradesh’s wetland-linked fishing traditions show how livelihoods evolved in harmony with seasonal hydrology, sustaining both income and aquatic biodiversity through customary norms and community regulation. Cultural–Economic Value Wetlands function simultaneously as ecology, economy, and heritage, supporting agriculture, fisheries, fodder, and crafts while reinforcing cultural identity and social cohesion in rural landscapes. Policy & Legal Framework Regulatory Architecture Wetlands (Conservation and Management) Rules, 2017 provide identification, notification, and regulation mechanisms restricting reclamation, pollution, and encroachment through State Wetland Authorities. NPCA guidelines promote science-based planning, monitoring, and outcome-oriented management, integrating ecological restoration with livelihood considerations. Coastal Regulation Zone (CRZ) norms safeguard coastal wetlands like mangroves and lagoons by regulating development and maintaining ecological buffers. India’s 98 Ramsar Sites entail global recognition and obligations for “wise use,” ecological character maintenance, and periodic reporting. Data & Evidence Status Trends Nearly 40% of India’s wetlands lost in three decades due to urbanisation, infrastructure, and land conversion, indicating large-scale ecological transformation. Around 50% of remaining wetlands show degradation from pollution, altered hydrology, and encroachments, reducing ecosystem service delivery. Key Challenges Land & Hydrology Pressures Encroachment, real estate expansion, and road networks convert wetlands into built-up areas, while outdated cadastral maps obscure original wetland boundaries and legal status. Dams, embankments, channelisation, sand mining, and groundwater overuse disrupt natural flow regimes, undermining wetland hydrology and ecological character. Pollution & Climate Risks Untreated sewage, industrial effluents, agricultural runoff, and solid waste cause eutrophication, biodiversity collapse, and loss of flood-buffering capacity. Coastal wetlands face combined stress from sea-level rise, cyclones, tourism, ports, and aquaculture, limiting natural inland migration space. Institutional Constraints State Wetland Authorities often face staffing, funding, and skill shortages in hydrology, GIS, ecology, and legal enforcement, weakening implementation quality. Governance Gaps Implementation Deficit India’s challenge lies less in legal absence and more in weak enforcement, fragmented coordination, and project-driven approaches rather than long-term ecosystem management programmes. Departmental silos prevent watershed-scale governance, ignoring ecological connectivity between wetlands, rivers, and catchments. Way Forward Regulatory & Planning Measures Ensure clear notification and demarcation with public maps, participatory ground-truthing, and grievance mechanisms to reduce disputes and encroachments. Integrate wetlands into basin-scale planning by restoring feeder channels, regulating extraction, and protecting catchments. Pollution & Urban Management Treat wastewater before discharge; wetlands should not replace sewage plants. Constructed wetlands may complement but not substitute primary treatment. Recognise urban wetlands as flood buffers and blue-green infrastructure in city master plans. Capacity & Technology Launch a national capacity mission for wetland managers in hydrology, restoration ecology, GIS, and community governance. Use remote sensing, drones, and time-series analytics for real-time monitoring of encroachment and vegetation changes. Community & Knowledge Integration Combine traditional ecological knowledge with modern science to enhance compliance, restoration success, and local stewardship. RAMSAR SITES IN INDIA Total: 98 Sites | 13.6 lakh+ hectares Andhra Pradesh (1) • Kolleru Lake Assam (1) • Deepor Beel Bihar (6) • Gogabeel Lake • Gokul Reservoir • Kanwar Lake (Asia’s largest oxbow lake) • Nagi Bird Sanctuary • Nakti Lake • Udaypur Lake Chhattisgarh (1) • Kopra Reservoir Goa (1) • Nanda Lake Gujarat (5) • Chhari-Dhand • Khijadiya • Nalsarovar (largest wetland bird sanctuary in Gujarat) • Thol Lake • Wadhvana Wetland Haryana (2) • Sultanpur National Park • Bhindawas Wildlife Sanctuary Himachal Pradesh (3) • Chandra Taal (high-altitude lake) • Pong Dam Lake • Renuka Lake Jammu & Kashmir (5) • Hokersar Wetland • Hygam Wetland • Shallabugh Wetland • Mansar–Surinsar • Wular Lake (one of India’s largest freshwater lakes) Jharkhand (1) • Udhwa Lake Karnataka (4) • Ranganathittu Bird Sanctuary • Ankasamudra Bird Conservation Reserve • Aghanashini Estuary (free-flowing river estuary – rare case) • Magadi Kere Conservation Reserve Kerala (3) • Ashtamudi Wetland • Sasthamkotta Lake (largest freshwater lake in Kerala) • Vembanad-Kol Wetland Ladakh (2) • Tso Kar • Tsomoriri (high-altitude Ramsar sites – climate sensitive) Madhya Pradesh (5) • Bhoj Wetland • Sakhya Sagar • Sirpur Lake • Yashwant Sagar • Tawa Reservoir Maharashtra (3) • Lonar Lake (meteorite crater lake – geology favourite) • Nandur Madhameshwar • Thane Creek (urban wetland example) Manipur (1) • Loktak Lake (phumdis – floating vegetation concept) Mizoram (1) • Pala Wetland Odisha (6) • Ansupa Lake • Bhitarkanika Mangroves • Chilika Lake (India’s largest brackish lagoon) • Hirakud Reservoir • Satkosia Gorge • Tampara Lake Punjab (6) • Beas Conservation Reserve • Harike Wetland • Kanjli Wetland • Keshopur-Miani Community Reserve • Nangal Wildlife Sanctuary • Ropar Wetland Rajasthan (5) • Keoladeo National Park (UNESCO site) • Sambhar Lake (largest inland salt lake) • Khichan Wetland • Menar Wetland Complex • Siliserh Lake Sikkim (1) • Khecheopalri Wetland (sacred lake) Tamil Nadu (20) • Chitrangudi Bird Sanctuary • Gulf of Mannar Marine Biosphere Reserve (marine Ramsar – rare) • Kanjirankulam • Karaivetti • Karikili • Koonthankulam • Longwood Shola • Pallikarnai Marsh (urban wetland example) • Pichavaram Mangrove • Point Calimere • Suchindram-Theroor Complex • Udhayamarthandapuram • Vadavur • Vedanthangal (oldest bird sanctuary in India) • Vellode • Vembannur Complex • Nanjarayan • Kazhuveli • Sakkarakottai • Therthangal Tripura (1) • Rudrasagar Lake Uttar Pradesh (11) • Patna Bird Sanctuary • Bakhira Sanctuary • Haiderpur Wetland • Nawabganj • Parvati Arga • Saman • Samaspur • Sandi • Sarsai Nawar • Sur Sarovar • Upper Ganga River (riverine Ramsar site – rare category) Uttarakhand (1) • Asan Barrage West Bengal (2) • East Kolkata Wetlands (sewage-fed aquaculture model – case study) • Sundarban Wetland (mangrove ecosystem) Budget 2026–27 & Capex-led Growth Why in News ? Fiscal Signal Budget 2026–27 guides fiscal deficit to 4.3% of GDP and raises public capex to ₹12.2 lakh crore, signalling shift from pandemic relief to infrastructure-led, borrowing-supported growth strategy. Capex and MSME support now framed as structural growth pillars rather than temporary stimulus, aligning with long-term vision of Viksit Bharat and productivity-led expansion. Relevance GS III — Indian Economy Capex-led growth model directly fits topics of fiscal policy, public expenditure, growth strategy, and infrastructure financing. Employment elasticity and jobless growth are core to questions on inclusive growth and labour markets. GS II — Governance Fiscal prioritisation shows policy trade-offs between growth, welfare, and employment—useful for governance and policy-design answers. Practice Question What is employment elasticity? Discuss its relevance in evaluating growth quality.(250 Words) Basics — Capex-led Growth Model What is Capital Expenditure (Capex)? Capex refers to government spending on asset creation—roads, railways, logistics, energy, digital infrastructure—that enhances long-term productive capacity instead of short-term consumption support. Theoretical rationale: capex crowds in private investment, raises productivity, and generates jobs through multiplier effects across construction, manufacturing, and services. Post-Pandemic Fiscal Shift Since 2020–21, capex moved from counter-cyclical tool to core fiscal doctrine, becoming primary driver of growth, even during periods of fiscal consolidation. Capex share in total expenditure rose from ~12% (2020–21) to over 22% recently, indicating structural reorientation toward asset-led growth. Economic Analysis — Growth vs Employment Labour Market Disconnect Despite capex surge, youth NEET rate (15–29 years) remains 23–25%, meaning nearly one-fourth of youth are outside education, employment, or training. Indicates weak labour absorption even as GDP and capital formation accelerate, pointing to a jobless or job-light growth pattern. Employment Elasticity Trends Construction elasticity fell from 0.59 (2011–20) to 0.42 (2021–24), implying each rupee of infrastructure now generates fewer jobs than before. Agriculture elasticity rose from 0.04 to 1.51, showing labour returning to low-productivity farming instead of exiting it—sign of distress-driven fallback. Structural Issues Capital Intensity Bias Current capex configuration favours capital-intensive sectors, where productivity rises but labour demand grows slowly, weakening employment multipliers. Gap between net value added per worker and wages shows productivity gains captured more as profits than labour income. Industrial Structure Constraints Annual Survey of Industries shows most factories employ under 100 workers; small firms dominate numerically but contribute limited output and struggle to scale. Large firms capture value from new infrastructure networks but remain labour-light and automation-driven. Dual Economy Concern Emerging Pattern Economy exhibits dualism: a capital-intensive formal sector driving GDP growth alongside a large informal sector absorbing surplus labour with low productivity. Informality, self-employment, and disguised agricultural labour act as buffers for inadequate formal job creation. Governance & Policy Perspective Fiscal Doctrine Shift Employment increasingly treated as by-product of growth rather than explicit policy target, reflecting prioritisation of macro-stability and capital formation. Inclusion depends on skills, urban location, and automation compatibility, marginalising low-skilled labour. Data & Evidence Key Numbers Fiscal deficit target: 4.3% of GDP. Public capex: ₹12.2 lakh crore. Capex share: ~12% → 22% of expenditure. Youth NEET: 23–25%. Construction elasticity: 0.59 → 0.42. Agriculture elasticity: 0.04 → 1.51. Challenges Development Risks Persistent jobless growth risks demographic dividend turning into demographic burden. Wage stagnation may suppress consumption demand, weakening long-term growth sustainability. Labour displacement into informality reduces tax base and social security coverage. Way Forward Policy Corrections Complement capex with labour-intensive manufacturing push—textiles, food processing, electronics assembly. Align industrial policy with employment-linked incentives, not just production-linked incentives. Expand skilling aligned to infra, green jobs, and local manufacturing clusters. Strengthen MSME formalisation, credit access, and technology adoption.

Daily Current Affairs

Current Affairs 03 February 2026

Content 16th Finance Commission & Urban Grants Why are Tribals Protesting in Maharashtra? IIT Council & Adaptive JEE DAY-NRLM at Crossroads (2026–31 Cycle) Mountain Gorilla Conservation & One Health Model 16th Finance Commission on Exit Clauses 16th Finance Commission & Urban Grants Fiscal Federal Context 16th Finance Commission (FC) report tabled in Lok Sabha sets tax devolution and local body grants framework, signalling stronger fiscal recognition of urbanisation, municipal finance needs, and decentralised service delivery. Commission recommended ₹3.5 lakh crore for Urban Local Governments (ULGs) over five years, reflecting unprecedented scale-up in urban fiscal support amid rapid urbanisation and infrastructure stress. Relevance GS II — Polity & Governance Finance Commission (Article 280), fiscal federalism, Centre–State–ULB relations. Urban governance, decentralisation, and municipal finance reforms. GS III — Economy Urban infrastructure financing, municipal bonds, property tax reforms. Public expenditure quality and local fiscal capacity. Background — Finance Commission & Urbanisation Role of Finance Commission Finance Commission, under Article 280, recommends vertical and horizontal devolution, including grants to local bodies to strengthen fiscal capacity and cooperative federalism. Urban grants aim to improve first-mile infrastructure, service delivery, and municipal governance in water, sanitation, mobility, and local public goods. Urbanisation Context India’s urban population projected near 40% by 2036, increasing pressure on urban infrastructure, housing, and services, necessitating stronger municipal finances. Key Recommendations — 16th FC Quantum of Allocation Recommended ₹3.5 lakh crore to ULGs for five years, roughly matching Centre’s share in centrally sponsored urban schemes over previous 13 years combined (Janaagraha analysis). Marks 230% increase over 15th FC allocation of ₹1.5 lakh crore (2021–26), signalling major fiscal shift toward urban governance. Share in Local Body Grants ULGs’ share in total local government grants raised to 45% from 36% earlier, indicating prioritisation of urban governance alongside Panchayati Raj Institutions. Urbanisation Premium Grant Introduced ₹10,000 crore urbanisation premium grant to incentivise planned rural–urban transition, supporting emerging towns facing demographic and economic transformation pressures. Grant Design & Structure Basic vs Tied Grants Over 60% grants categorised as basic grants; tied components target core services like water supply and sanitation, ensuring minimum service standards. Untied grants allow location-specific spending flexibility, excluding salary and establishment costs, promoting local prioritisation and accountability. State-wise Trends Distribution Patterns Kerala recorded >400% increase in allocation, reflecting demographic and urban governance indicators; suggests performance-sensitive distribution. Himachal Pradesh saw ~50% decline, possibly linked to lower urbanisation levels or revised formula weights. Economic & Governance Significance Strengthening Municipal Capacity Enhanced grants can reduce ULG dependence on State transfers, enabling better own-source revenue leverage, creditworthiness, and municipal bond potential. Supports decentralised delivery of public goods, improving urban productivity, livability, and economic competitiveness. Urban Transition Support Urbanisation premium recognises migration-driven town growth, helping finance infrastructure in peri-urban and census towns lacking formal governance capacity. Data & Evidence Key Figures ₹3.5 lakh crore recommended for ULGs. 230% rise from previous cycle. 45% share of local body grants to ULGs. ₹10,000 crore urbanisation premium. >60% basic grants structure. Challenges & Concerns Implementation Risks Weak municipal capacity, staffing gaps, and planning deficits may limit effective utilisation of larger grants. Persistent low property tax collection efficiency constrains fiscal sustainability despite higher transfers. Risk of grant dependency without parallel reforms in revenue mobilisation and governance. Way Forward Reform Priorities Link grants with municipal finance reforms, digital property tax systems, and user-charge rationalisation. Strengthen urban planning, GIS-based asset mapping, and participatory budgeting. Encourage municipal bonds and credit ratings for large cities. Why are tribals protesting in Maharashtra? Why in News ? Immediate Context Thousands of tribals from Palghar and Nashik undertook long marches in January 2026 demanding land titles, irrigation support, and livelihood security, over pending forest rights. Protests gained traction as both districts have high tribal populations and long-standing grievances over land ownership recognition and welfare access. Relevance GS II — Polity & Social Justice FRA 2006, PESA 1996, Fifth Schedule — tribal rights and governance. Welfare delivery, land rights, and inclusion of STs. GS III — Environment Forest governance, conservation vs livelihood debate. Community-based natural resource management. Background — Tribal Land & Forest Rights  Constitutional Foundation Fifth Schedule mandates protection of tribal land and self-governance in Scheduled Areas, recognising historical injustice and need for cultural–economic safeguards. Article 244 provides administrative framework for Scheduled Areas, while PESA Act 1996 empowers Gram Sabhas over natural resource management. Forest Rights Act (FRA), 2006 FRA recognises Individual Forest Rights (IFR), Community Forest Rights (CFR), and habitat rights of Scheduled Tribes and Other Traditional Forest Dwellers. Objective is to correct historical injustice caused by colonial forest laws that alienated tribals from customary lands. Core Issues Behind Protests Land Title Concerns Tribals allege that titles issued contain incorrect formats, joint listings, or partial land recognition, restricting access to credit, schemes, and legal security. Many cultivators received titles for only fraction of land actually tilled, creating livelihood uncertainty. High Rejection Rates Over 45% FRA claims rejected in Maharashtra, raising concerns about verification processes and interpretation standards. Out of 3,80,966 disposed claims, only 2,08,335 titles granted while 1,72,631 rejected, indicating significant exclusion. Digitisation & Record Gaps Digitisation of land records reportedly caused mismatches between ground reality and official data, leading to claim denials and procedural delays. Livelihood & Development Demands Irrigation & Agriculture Protestors demand small dams and river-linking to divert west-flowing rivers for irrigating drought-prone eastern belts, enabling multi-cropping and income stability. Irrigation seen as critical for reducing dependence on rain-fed farming and seasonal migration. Employment & Education Secure land rights linked to eligibility for institutional loans, schemes, and education benefits, making FRA implementation central to socio-economic mobility. Governance & Policy Dimension Implementation Deficit FRA implementation varies across States due to bureaucratic caution, forest department resistance, and differing interpretations of eligibility criteria. Gap exists between legal recognition and ground-level enforcement. Ideological Tension Ecologist Madhav Gadgil noted tension between fortress conservation model and FRA’s community-based conservation vision. Debate framed as “conservation versus forest rights” reflects policy mindset conflict. IIT Council & Adaptive JEE Immediate Context IIT Council recommended exploring adaptive testing for JEE-Advanced to create a “better and less stressful assessment,” marking potential shift from uniform linear exams to technology-driven evaluation. Proposal includes a two-year transition (2026–2028) with optional adaptive mock tests from 2026 for calibration and familiarity. Relevance GS II — Governance & Education Education reforms, exam governance, transparency. Article 14 and equality in public examinations. GS III — Science & Tech AI/data-driven testing, digital governance. EdTech and assessment reforms. Background — Competitive Exams in India Linear Examination Model Traditional exams use identical question papers for all candidates, ranking based on correct responses, often encouraging rote learning and coaching-oriented test-cracking strategies. High-stakes nature means even marginal score differences shape career trajectories, intensifying exam pressure. Need for Reform Concerns over exam stress, memorisation culture, and inequitable assessment of conceptual ability have pushed policymakers toward assessment reforms focusing on aptitude and reasoning. What is Adaptive Testing? Concept & Mechanism Adaptive testing uses Item Response Theory (IRT) where computer algorithms select questions based on candidate performance, dynamically adjusting difficulty after each response. Test usually begins with medium-difficulty items; correct answers lead to harder questions, incorrect ones to easier items, refining ability estimates iteratively. Assessment Logic Goal is precise ability measurement using fewer but better-targeted questions, reducing fatigue while improving psychometric accuracy. Candidates may face different questions yet remain comparable on a common ability scale. Advantages of Adaptive Testing Pedagogical Gains Rewards conceptual clarity since only strong candidates progress to high-difficulty, high-weightage questions, discouraging superficial preparation strategies. Reduces random guessing and score inflation, improving validity of merit ranking. Efficiency & Fairness Shorter tests with equal reliability lower candidate stress and logistical burdens. Fairness embedded in design as difficulty adapts to individual performance rather than post-test normalisation. Widely used globally for over 25 years in exams like GRE and GMAT. Legal & Constitutional Concerns Equality Debate Under Article 14, equality often equated with identical question papers; adaptive testing’s varied questions may face judicial scrutiny. Fairness must be demonstrated through transparent scaling and scientific validation. Algorithmic Transparency Algorithm opacity could trigger bias or discrimination claims unless supported by equity audits and disclosures. Robust grievance redressal needed to reduce litigation risk. Operational Challenges Infrastructure Risks Requires reliable digital infrastructure, especially in tier-2/3 cities, as glitches could be challenged as maladministration. Data centre reliability, secure proctoring, and incident handling must exceed current standards. Question Bank Development Needs large, calibrated item banks with difficulty indexing, syllabus coverage, and leakage-proof pretesting—technically and administratively demanding. Transition Strategy Phased Rollout Proposed two-year transition includes optional adaptive mock tests to familiarise students and refine item calibration. Gradual implementation helps build stakeholder trust and reduce resistance. Learning from Global Practice GRE and GMAT experiences show acceptance improves with transparency, technical documentation, and consistent communication. Broader Significance Education Reform Lens Reflects shift toward competency-based assessment aligned with NEP 2020 emphasis on critical thinking over rote learning. Signals growing role of data science and AI in public examinations. Safeguards Establish independent psychometric audits and publish methodology summaries. Ensure multilingual interface parity and accessibility. Strengthen legal frameworks and grievance mechanisms before full adoption. DAY-NRLM at Crossroads (2026–31 Cycle) Current Context DAY-NRLM is due for appraisal for the 2026–27 to 2030–31 cycle, prompting review of strategy to deepen women’s livelihoods, enterprise growth, and institutional sustainability. Programme recognised for mobilising women-led collectives and financial inclusion, but next phase demands institutional strengthening and market integration. Relevance GS II — Social Justice SHGs, women empowerment, poverty alleviation. DBT delivery and grassroots institutions. GS III — Economy Financial inclusion, rural entrepreneurship, microfinance. Livelihood diversification and credit systems. Background — DAY-NRLM   What is DAY-NRLM? Deendayal Antyodaya Yojana–NRLM, under Ministry of Rural Development, aims to reduce rural poverty through SHG-based mobilisation, financial inclusion, and livelihood promotion of poor households, especially women. Focuses on social mobilisation, capacity building, credit access, and enterprise promotion using community institutions. Institutional Architecture Built on three-tier structure: Self-Help Groups (SHGs) → Village Organisations (VOs) → Cluster-Level Federations (CLFs) ensuring decentralised, community-driven governance. Scale & Achievements Mobilisation & Financial Inclusion Around 10 crore households mobilised into 91 lakh SHGs, federated into 5.35 lakh VOs and 33,558 CLFs, making it one of world’s largest women-led networks. SHGs mobilised ₹11 lakh crore bank credit with only ~1.7% NPA, indicating strong credit discipline. Women’s Economic Gains Lakhpati Didis exceed 2 crore, reflecting income enhancement and enterprise success among rural women. SHG participation linked to higher financial literacy and asset ownership. Political & Social Empowerment Women’s collectives increasingly influence local governance and DBT delivery, with States using SHG networks for schemes like Ladli Laxmi, Maiya Samman, Ladki Bahin. Core Concerns Weakening Autonomy of CLFs CLFs reportedly becoming subservient to government functionaries, limiting independent decision-making and diluting community ownership model. Contradicts original vision of self-managed community institutions. Idle Funds & Accountability Community institutions hold large capitalisation funds (reported ₹56.69 lakh crore), creating risks of idle funds and misuse without robust audits. Need for social and statutory audits to ensure transparency. Credit Constraints SHG members seek higher credit for scaling enterprises but lack individual credit histories and CIBIL scores, limiting access to formal loans. Financial & Institutional Gaps Uniform Loan Products Standardised loan tenures and rates ignore diversity in livelihoods, reducing financial efficiency and suitability for varied enterprises. Community-led credit decisions could improve outcomes. Limited Financing Models Heavy reliance on debt financing; limited use of equity, venture capital, and blended finance restricts enterprise scaling. Need for Convergence Siloed Implementation Livelihood schemes across departments operate in silos, reducing cumulative impact and causing duplication. Convergence often officer-driven and unsustainable. Institutional Solution Proposed Convergence Cell at NITI Aayog could streamline multi-ministry coordination and resource optimisation. Market Linkage Deficit Marketing Barriers Weak branding, packaging, pricing, and logistics limit SHG product competitiveness in markets. Absence of dedicated marketing vertical reduces visibility and scale. Proposed Solutions Dedicated national marketing vertical and State-level professional agencies could improve market access. Select CLFs as logistics hubs for aggregation and distribution. Way Forward Institutional Reforms Revitalise CLFs as community-owned institutions with autonomy and professional support. Strengthen audit systems and financial governance. Financial Deepening Develop customised financial products, generate CIBIL scores, and partner with SIDBI, NBFCs, and neobanks. Livelihood Planning Use Village Prosperity and Resilience Plans (VPRP) for annual livelihood planning and enterprise targeting. Broader Significance Inclusive Growth Lens DAY-NRLM supports SDGs on poverty reduction, gender equality, and decent work, making it central to inclusive rural transformation. Strengthened SHG ecosystems can drive rural entrepreneurship and local economic multipliers. Mountain Gorilla Current Event Global attention on Uganda’s mountain gorilla conservation due to recognition of Dr. Gladys Kalema-Zikusoka’s One Health model linking wildlife health, community health, and conservation success. Her decades-long work through Conservation Through Public Health (CTPH) is highlighted as a model for integrating conservation with livelihoods and disease prevention in biodiversity-rich developing countries. Relevance GS III — Environment Biodiversity conservation, flagship species, eco-tourism. One Health approach (human–animal–ecosystem link). GS II — Governance Community participation in conservation. Public health–environment interface. Why is it in News? Policy & Conservation Relevance Uganda’s mountain gorilla recovery showcases how community-based conservation, eco-tourism, and public health integration can revive critically endangered species even after political instability and poaching-driven collapse. Growing global focus on One Health, zoonotic disease risks, and human-wildlife coexistence makes Uganda’s gorilla model relevant for biodiversity policy and conservation governance debates. Mountain Gorillas   Species Basics Mountain gorilla (Gorilla beringei beringei) is a critically endangered great ape found only in Central Africa’s Bwindi and Virunga forests at elevations of 2,200–4,300 metres. Global population approximately ~1,000 individuals, making them among the rarest primates, with slow recovery due to low reproduction and high sensitivity to disturbance. Ecology & Behaviour Occupy dense montane and bamboo forests; primarily herbivorous, feeding on leaves, shoots, and stems, playing ecological roles in seed dispersal and forest regeneration. Long birth interval of 4–5 years limits rapid population growth, increasing vulnerability to poaching, habitat loss, and disease. Threats Major threats include habitat encroachment, poaching, civil conflict spillovers, and human-borne respiratory diseases due to close genetic similarity with humans. Historical poaching reduced Virunga population from 400–500 (1960s) to ~260–290 during political turmoil in the 1970s–80s. Conservation Significance Gorilla tourism generates revenue and incentives for protection, similar to tiger tourism in India, linking conservation with local livelihoods. Considered a flagship species for biodiversity conservation, eco-tourism, and One Health approaches. 16th Finance Commission on Exit Clauses Core Update The 16th Finance Commission (FC) has recommended “exit clauses” for cash transfer and subsidy schemes, urging States to avoid open-ended, unconditional freebies that strain fiscal sustainability and crowd out development spending. Comes amid a sharp rise in State-level Direct Benefit Transfers (DBTs) and subsidy schemes, especially ahead of elections, raising concerns about long-term fiscal health. Relevance GS II — Polity & Governance Fiscal federalism, welfare governance, subsidy design. Role of Finance Commission in fiscal discipline. GS III — Economy Freebies vs welfare debate, fiscal sustainability. FRBM, quality of public expenditure. Why is it in News? Fiscal Concern Several States have significantly increased cash transfer and subsidy outlays (2023–26 BE period), prompting the FC to caution against fiscally unsustainable welfare expansion without sunset or review mechanisms. The recommendation revives the debate on “freebies vs welfare”, fiscal discipline, and responsible public expenditure under competitive populism. Background — Finance Commission Constitutional Role Article 280 mandates the Finance Commission to recommend tax devolution and grants-in-aid, and increasingly to advise on fiscal sustainability and macro-stability. Though advisory, FC recommendations strongly influence Centre–State fiscal relations and budget priorities. Key Observations of the 16th FC Rise in Subsidy Burden States like Jharkhand, Odisha, and Madhya Pradesh have expanded DBTs and subsidies sharply, with some recording double-digit growth in cash support schemes. Such schemes risk creating structural revenue burdens rather than temporary social protection. Exit Clause Logic FC suggests schemes should include sunset clauses, periodic reviews, and outcome evaluation, ensuring they do not become permanent entitlements without fiscal space. Aims to shift focus from consumption subsidies to capital and human development spending. Economic Significance Fiscal Sustainability Rising revenue expenditure on transfers reduces fiscal room for capex, infrastructure, and growth-enhancing investments, potentially weakening long-term State finances. Persistent freebies can increase debt–GSDP ratios and interest burdens. Welfare Efficiency Well-designed welfare improves equity, but unconditional transfers without targeting or exit strategy may reduce efficiency and distort incentives. Governance Dimension Populism vs Responsibility Competitive populism among States risks a race-to-the-bottom fiscal strategy, undermining cooperative federalism and macroeconomic stability. FC stresses evidence-based welfare design, not politically driven expansion. Way Forward Reform Directions Introduce sunset clauses and beneficiary targeting. Link DBTs to human capital outcomes (health, education, skills). Strengthen fiscal responsibility frameworks at State level.

Daily PIB Summaries

PIB Summaries 02 February 2026

Content Budget push to make India a Global Bio pharma Hub(Union Budget 2026–27) Summary of Union Budget 2026–27 Budget push to make India a Global Biopharma Hub (Union Budget 2026–27) Context & Significance Union Budget 2026–27 positions biopharma as a strategic growth sector, aligning healthcare security with industrial policy, export competitiveness, employment generation, and Atmanirbhar Bharat in high-value pharmaceutical value chains. Global biologics market exceeds USD 450 billion and growing faster than small-molecule drugs; India’s timely policy push targets leadership in biosimilars, vaccines, cell-gene therapies, and complex biologics manufacturing. Relevance GS-2 (Polity & Governance): Public health policy, regulatory reforms (CDSCO), ethical clinical trials, Article 21. GS-3 (Economy): Pharma exports, high-value manufacturing, Atmanirbhar Bharat, industrial policy. Key Budget Announcements Biopharma SHAKTI Scheme Biopharma SHAKTI with ₹10,000 crore outlay over five years aims building domestic biologics and biosimilars ecosystem, strengthening upstream research, downstream processing, and integrated biomanufacturing clusters reducing import dependence. Scheme focuses on knowledge, technology, and innovation-led manufacturing, supporting pilot-scale facilities, translational research platforms, and industry partnerships, enabling Indian firms to move from generics dominance toward complex biologics leadership. Import substitution in monoclonal antibodies, recombinant proteins, and advanced biologics improves health security, reduces forex outgo, and stabilizes supply chains exposed during pandemics and geopolitical disruptions. Clinical Trial Ecosystem Expansion Creation of 1,000+ accredited clinical trial sites expands India’s research geography beyond metros, improves participant diversity, strengthens data reliability, and enhances India’s attractiveness for global multicentric trials. Faster recruitment, lower trial costs, and large treatment-naïve populations position India competitively against Eastern Europe, Latin America, and Southeast Asia in global clinical research outsourcing markets. Strengthened CDSCO with scientific review cadre targets globally comparable approval timelines, regulatory predictability, and compliance with ICH-GCP norms, improving investor confidence and international trial acceptability. NIPER Expansion Establishment of three new NIPERs and upgradation of seven existing institutes expands high-end pharmaceutical education capacity, fostering specialized talent in bioprocessing, pharmacovigilance, regulatory sciences, and biologics analytics. Industry–academia linkages through NIPERs support translational research, patent generation, and startup incubation, strengthening India’s innovation pipeline beyond contract manufacturing toward original biologic product development. Constitutional / Legal Dimension Advances Article 21 by improving access to life-saving biologics, and supports Directive Principles Articles 39(e), 41, 47 promoting public health, scientific advancement, and state responsibility toward healthcare improvement. Regulatory strengthening aligns with Drugs and Cosmetics Act framework and evolving bio-regulatory regimes, ensuring safety, efficacy, and ethical compliance in clinical trials and biologics manufacturing. Governance / Administrative Dimension Multi-ministerial coordination among Health, Pharmaceuticals, Biotechnology, and Commerce ministries required for cluster development, harmonized regulations, and faster clearances for biologics facilities and clinical research infrastructure. Accreditation-based trial ecosystem improves standardization, reduces ethical violations, and strengthens institutional review boards, addressing past criticisms regarding informed consent and participant protection. Economic Dimension Indian pharma industry already USD 50+ billion; moving into biologics with higher margins can boost exports, reduce reliance on low-margin generics, and support aspiration of USD 130 billion pharma market by 2030. Biologics manufacturing generates high-skilled employment in R&D, quality control, cold chain logistics, and regulatory affairs, creating knowledge-intensive jobs aligned with demographic dividend utilization. Social / Ethical Dimension Domestic biologics production can lower treatment costs for cancer, autoimmune, and rare diseases, improving affordability and equity in access, particularly where biologics currently remain prohibitively expensive. Strong ethical oversight needed for trials to protect vulnerable populations, ensure informed consent, fair compensation, and transparency, preventing exploitation concerns historically associated with clinical research outsourcing. Science–Tech / Security Dimension Investment in advanced biomanufacturing enhances strategic autonomy in vaccines, pandemic response, and biosecurity preparedness, reducing vulnerability to export restrictions or supply disruptions during global health emergencies. Promotes frontier technologies like cell-gene therapy, mRNA platforms, and precision biologics, positioning India within global innovation networks rather than remaining peripheral manufacturing base. Data & Evidence India supplies around 20% of global generics and 60% of global vaccines by volume, yet share in global biologics market remains limited, indicating significant untapped potential for value addition. Clinical trial costs in India estimated 30–50% lower than developed countries, offering cost advantage if regulatory credibility and ethical standards remain robust and internationally trusted. Challenges / Gaps / Criticisms Biologics require high capital investment, stringent quality systems, and cold-chain infrastructure; MSME pharma firms may struggle without targeted financing and technology transfer mechanisms. Regulatory capacity constraints, potential approval delays, and variability in ethics committee quality can undermine credibility if expansion of trials outpaces regulatory and monitoring capabilities. IPR complexities and patent thickets in biologics may restrict market entry; balancing TRIPS compliance with public health needs remains persistent policy challenge. Way Forward Develop dedicated biologics parks with shared facilities, plug-and-play infrastructure, and fiscal incentives, reducing entry barriers and achieving economies of scale in complex biomanufacturing. Strengthen regulatory science training, digitalize approval processes, and adopt risk-based inspections to ensure speed with safety, matching USFDA and EMA benchmarks. Promote public-funded translational research, sovereign biotech funds, and global collaborations to support indigenous innovation while integrating into global biologics value chains. Summary of Union Budget 2026–27 Context & Vision Union Budget 2026–27 framed around “Yuva Shakti” and three Kartavya pillars, balancing growth, inclusion, and capacity-building amid global trade fragmentation, supply-chain risks, and technology-driven economic restructuring. Budget situates India’s macro-strategy within Viksit Bharat trajectory, emphasizing competitiveness, resilience, and social justice, while integrating domestic reforms with deeper global market participation and long-term capital attraction. Relevance GS-3 (Economy): Fiscal deficit, public capex, MSMEs, manufacturing, logistics. GS-3 (Agriculture): AgriStack + AI, farmer advisory, risk reduction. Philosophical Framework – Three Kartavya Kartavya 1 – Accelerate & Sustain Growth Focus on productivity, competitiveness, and resilience through manufacturing scale-up, infrastructure push, energy security, MSME strengthening, and city economic regions leveraging agglomeration economies and cluster-based development models. Kartavya 2 – Fulfil Aspirations & Build Capacity Emphasis on human capital formation through education, skills, sports, tourism, and creative industries, recognizing demographic dividend requires employability, innovation capacity, and social mobility enhancement. Kartavya 3 – Sabka Sath, Sabka Vikas Targets inclusive development ensuring access to opportunities for regions, communities, farmers, women, Divyangjan, and vulnerable groups, aligning fiscal policy with distributive justice and cooperative federalism principles. Macroeconomic & Fiscal Architecture Fiscal deficit pegged at 4.3% of GDP (BE 2026–27), continuing consolidation path, signalling credibility to investors while attempting balance between fiscal prudence and growth-supportive expenditure. Debt-to-GDP ratio estimated 55.6%, marginally declining, indicating gradual debt sustainability strategy to reduce interest burden and create fiscal space for social and capital expenditure. Non-debt receipts estimated ₹36.5 lakh crore and total expenditure ₹53.5 lakh crore, reflecting expansionary yet calibrated fiscal stance prioritizing capital formation and growth multipliers. Public Capex & Infrastructure Push Public capex increased to ₹12.2 lakh crore from ₹11.2 lakh crore, reinforcing government’s capex-led growth model, crowding-in private investment and strengthening infrastructure-led multiplier effects. Seven high-speed rail corridors and dedicated freight corridors promote green mobility, logistics efficiency, and regional integration, reducing logistics cost—currently ~13–14% of GDP versus global benchmark ~8%. Operationalising 20 new National Waterways supports multimodal logistics, mineral evacuation, and low-carbon transport, complementing PM Gati Shakti and National Logistics Policy objectives. Manufacturing & Industrial Policy Scaling manufacturing in seven frontier sectors aligns with PLI logic, targeting value-chain integration, technology absorption, and export competitiveness amid global reconfiguration of supply chains. City Economic Regions (₹5,000 crore per CER over five years) institutionalize place-based development, encouraging metropolitan growth engines and coordinated urban-industrial planning. MSME & Enterprise Ecosystem ₹10,000 crore SME Growth Fund aims creating “Champion MSMEs,” supporting scaling, technology adoption, and export readiness, addressing MSMEs’ chronic credit and competitiveness constraints. Customs and e-commerce export reforms, including removal of ₹10 lakh courier export cap, integrate MSMEs into global digital trade ecosystems and cross-border value chains. Sectoral Growth Drivers Biopharma & Health ₹10,000 crore Biopharma SHAKTI, 3 new NIPERs, and 1,000+ clinical trial sites target biologics leadership, health security, and high-value pharma exports beyond generics dominance. Five Regional Medical Hubs and medical value tourism strengthen healthcare services exports, employment generation, and India’s positioning as global medical tourism hub. Textiles Integrated textile programme covering fibres, cluster modernization, sustainability, and skilling supports labour-intensive employment and export revival in a sector employing over 45 million people. Creative & AVGC Economy AVGC labs in 15,000 schools and 500 colleges build pipeline for sector projected to require 2 million professionals by 2030, supporting digital economy diversification. Sports Economy Khelo India Mission institutionalizes sports ecosystem with science, coaching, and leagues, linking sports with health outcomes, youth engagement, and global sporting competitiveness. Agriculture & Rural Transformation Bharat-VISTAAR AI integrates AgriStack and ICAR advisories, enabling precision agriculture, risk reduction, and data-driven farm decisions, supporting income stability and climate-smart agriculture. SHE Marts strengthen SHG-led rural enterprises, promoting women-led local value chains and inclusive rural non-farm growth. Social Sector & Inclusion Girls’ hostel in every district addresses gendered barriers in STEM education, improving female labour force participation and educational continuity. NIMHANS-2 and regional mental health institutes signal mainstreaming of mental health within public health architecture, addressing rising psychosocial stress burdens. Focus on Purvodaya and North-East through corridors, tourism, and e-buses promotes regional equity and balanced development. Direct Tax Reforms New Income Tax Act 2025 effective April 2026 simplifies compliance, reduces litigation, and improves taxpayer experience through redesigned forms and automated processes. Rationalization of penalty and prosecution, decriminalisation of minor defaults, and integrated assessment orders reflect trust-based tax administration shift. Reduced TCS on overseas tours and LRS education/medical remittances eases middle-class burdens and improves global mobility affordability. Corporate & International Tax Safe harbour margin 15.5% for IT services and higher threshold (₹2,000 crore) reduce transfer pricing disputes and enhance predictability for major export sector. Tax holiday for foreign cloud providers till 2047 and MAT exemption for presumptive non-residents aim positioning India as global data centre and digital services hub. Indirect Taxes & Customs Customs rationalisation supports domestic manufacturing, critical minerals processing, energy transition, aviation manufacturing, and nuclear sector development. Duty exemptions on lithium-ion, solar inputs, and critical minerals align with clean energy transition and strategic resource security. Tariff reduction on personal imports from 20% to 10% improves ease of living and reduces compliance burden for individuals. Ease of Doing Business Single digital window for cargo approvals, Customs Integrated System, AI-based risk assessment, and full container scanning reduce dwell time and logistics uncertainty. Warehouse operator-centric model with self-declarations and risk-based audits signals shift from control-based to trust-and-verify regulatory philosophy. Constitutional / Governance Lens Aligns with Directive Principles—Articles 38, 39, 41, 43, 47—promoting welfare state, livelihood, health, and equitable resource distribution through fiscal policy. Cooperative federalism reflected in state-supported hubs, CERs, and sectoral schemes requiring Centre–State convergence. Challenges / Criticisms High capex requires strong state capacity and timely project execution; historical delays can dilute multiplier effects and strain fiscal math. Tax incentives risk revenue foregone without guaranteed investment inflows; sunset clauses and outcome monitoring critical. Implementation complexity across multiple schemes may lead to fragmentation without strong coordination mechanisms. Way Forward Strengthen outcome-based budgeting, independent evaluation, and real-time dashboards to track scheme effectiveness and fiscal efficiency. Enhance state-level capacity and urban governance reforms to realize benefits of CERs, logistics corridors, and infrastructure investments. Balance tax incentives with revenue stability and ensure predictable policy regime to maintain investor confidence.

Editorials/Opinions Analysis For UPSC 02 February 2026

Content Pushing Welfare Towards the States – Social Sector Budget Shift What the New Fiscal Rule Means for Growth and Spending Pushing Welfare Towards the States – Social Sector Budget Shift Context & Core Thesis Budget 2026–27 consolidates shift of welfare responsibility from Union to States, with Centre setting norms while States increasingly finance and implement social protection and human development programmes. No new flagship welfare schemes signals fiscal tilt toward capex and supply-side growth, despite persistent challenges of malnutrition, unemployment, and social vulnerability. Relevance GS-2 (Polity & Governance) Fiscal federalism, Centre–State financial relations, CSS design, cooperative federalism, welfare delivery architecture, Directive Principles (Art 38, 39, 41, 45, 47). GS-2 (Social Justice) Welfare of vulnerable groups, nutrition, pensions, ICDS, PM POSHAN, social sector targeting and inclusion. Practice Question “The shift of welfare responsibility from the Union to the States has significant implications for equity and human development.”Discuss in the context of recent budgetary trends. (250 words) Social Sector Allocation Trends Stagnant Welfare Allocations Allocations for vulnerable groups rose only 0.2% (NSAP) to 5.2% (Saksham Anganwadi), implying real decline after inflation and expanding beneficiary base. RE 2025–26 < BE 2025–26 across schemes shows systemic underutilisation, delayed releases, and low prioritisation of welfare spending. Health & Education Spending Health and education allocations increased just 6.4% and 8.3%, inadequate against inflation, demographic growth, and pandemic-induced learning-health losses. RE shortfalls of 3.7% (health) and 5.2% (education) reflect inefficiencies in utilisation and weak human capital prioritisation. Major Scheme Contractions (Value-Addition Focus) Jal Jeevan Mission (JJM) cut from ₹67,000 crore (BE) to ₹17,000 crore (RE) risks slowing progress toward Har Ghar Jal and SDG-6 (clean water) targets. PMAY-Grameen reduced from ₹54,832 crore to ₹32,500 crore, and PMAY-Urban from ₹19,794 crore to ₹7,500 crore, affecting affordable housing and urban inclusion goals. PM POSHAN (Mid-Day Meal), Saksham Anganwadi, and SAMARTHYA maternity benefits remain low-funded despite India’s high child stunting and anaemia prevalence (NFHS-5). Centrally Sponsored Schemes (CSS) Underspending CSS outlay fell from ₹5.42 lakh crore (BE) to ₹4.20 lakh crore (RE), showing nearly ₹1.2 lakh crore underspending. BE 2026–27 at ₹5.49 lakh crore shows restoration on paper, but past trends question real absorptive and delivery capacity. Fiscal Federalism Shift Rising State Burden Schemes like VB-GRAM G use 60:40 cost-sharing, requiring States to mobilise ~₹56,000 crore alongside Centre’s ₹96,000 crore. Welfare delivery increasingly depends on State fiscal health, risking inter-state inequality in pensions, nutrition, and social security. Limited Fiscal Space for States States’ effective tax share only 34%, below 41% Finance Commission norm, due to rising cesses and surcharges outside divisible pool. Finance Commission grants declined from ₹1,32,767 crore to ₹1,29,397 crore, reducing untied fiscal support. Economic Implications Capex push of ₹12 lakh crore+ assumes job multipliers, yet India faces jobless growth, weak manufacturing absorption, and rising educated youth unemployment. Welfare spending supports consumption demand, critical when private investment and wage growth remain subdued. Social Justice Implications Underfunding nutrition, pensions, and childcare disproportionately impacts women, children, elderly, and disabled, weakening social safety nets. India still hosts one of the world’s largest undernourished populations (FAO estimates), making nutrition spending economically and morally critical. Constitutional Dimension Articles 38, 39, 41, 45, 47 obligate State to promote welfare, nutrition, and public health; declining real allocations dilute welfare-state commitments. Reflects tension between Keynesian welfare economics and fiscal conservatism. Key Challenges Persistent BE–RE gaps show weak planning realism and administrative capacity. State-heavy welfare model without fiscal empowerment risks uneven human development outcomes. Supply-side bias overlooks demand constraints in a slowing economy. Way Forward Increase untied tax devolution and rationalise cesses to restore fiscal federal balance. Adopt outcome-based budgeting linking funds to nutrition, health, and learning improvements. Treat welfare as human capital investment, not consumption, given links to productivity and demographic dividend. What the New Fiscal Rule Means for Growth and Spending Context & Fiscal Rule Shift Fiscal policy in FY27 guided by a “sound finance” rule, prioritising deficit and debt reduction, where borrowing targets shape expenditure decisions more than counter-cyclical growth considerations. India’s fiscal framework evolving from deficit-targeting (FRBM 2003) to debt-GDP targeting, making debt sustainability the primary fiscal anchor. Relevance GS-3 (Economy ) Fiscal policy, FRBM framework, debt sustainability, fiscal consolidation, capex-led growth strategy. GS-3 (Inclusive Growth) Distributional impact of fiscal consolidation, rural demand, agriculture expenditure. Practice Question “India’s new debt-focused fiscal rule improves macro-stability but may constrain inclusive growth.”Critically examine. (250 words) Nature of the New Fiscal Rule From Deficit Target to Debt Target Earlier FRBM rule focused on fiscal deficit-GDP ratio; new framework prioritises debt-GDP ratio as core policy target. Government aims to reduce debt-GDP to around 50% by 2031, compared to FRBM’s earlier normative level near 40%. Gradual Consolidation Path Fiscal deficit targeted to decline from 4.4% (FY26) to 4.3% (FY27), and primary deficit from 0.8% to 0.7%. Consolidation pace less severe than post-pandemic years, providing limited but real fiscal space. How Fiscal Targets Are Being Met ? Revenue Side Constraints Government’s non-debt receipts-GDP ratio falls from 9.5% (FY26) to 9.3% (FY27), reflecting slower tax buoyancy and moderation in GST/indirect tax shares. GST and indirect taxes both decline by 0.3 percentage points, limiting revenue-driven consolidation. Expenditure Compression Total expenditure-GDP ratio reduced from 13.9% to 13.6%, indicating consolidation largely expenditure-led. Capital expenditure-GDP stable at 3.1%, implying adjustment burden falls on revenue and development expenditure. Development Expenditure Cuts Social & Economic Services Development expenditure share declines from 6.1% to 5.7% of GDP, showing squeeze on welfare and productive sectors. Cuts concentrated in rural development and agriculture, with share falling from 1.5% to 1.2% of GDP. Rural Employment Impact Sharp reduction in revenue spending on rural employment reduces direct income support, weakening rural demand and consumption multipliers. Demand stimulus from lower indirect taxes offset by contraction in rural and agricultural spending. Growth Implications Capex-led strategy assumes high multiplier effects, but weak private investment response limits crowding-in benefits. Corporate investment-capital ratio remains subdued amid weak global demand and export slowdown. Reduced rural expenditure risks depressing aggregate demand in a consumption-driven economy. Distributional Concerns Fiscal consolidation burden disproportionately borne by development and agricultural sectors, affecting vulnerable populations. Corporate tax-GDP ratio largely unchanged from pre-COVID levels, suggesting limited burden-sharing from profitable sectors. Constitutional & Policy Lens Directive Principles (Articles 38, 39, 41) require equitable growth and livelihood support; expenditure compression in welfare raises normative concerns. Reflects policy trade-off between macroeconomic stability and inclusive development. Key Challenges Overemphasis on debt reduction may constrain counter-cyclical fiscal policy during global slowdown. Persistent low private investment questions effectiveness of supply-side fiscal strategy. Rural demand compression risks slowing GDP growth given agriculture’s large employment share. Way Forward Adopt counter-cyclical flexibility within fiscal rules to protect development spending during slowdowns. Broaden tax base and improve compliance to raise non-debt receipts instead of cutting welfare. Balance fiscal prudence with growth-supportive and inclusive expenditure.

Daily Current Affairs

Current Affairs 02 February 2026

Content Biopharma SHAKTI & India’s Push into Biologics Education & Skilling Budget Push CCUS (Carbon Capture, Utilisation & Storage) High-Speed Rail Corridors Cheaper Cancer Drugs & Caregiver Training Waste-to-Energy (WtE) Livestock & Fisheries Push Rakhigarhi & Harappan Heritage Biopharma SHAKTI & India’s Push into Biologics Why in News ? Union Budget 2026–27 announced a ₹10,000 crore Biopharma SHAKTI programme to scale biologics and biosimilars, strengthen CDSCO regulation, and expand NIPER network, signalling strategic push toward biopharma self-reliance. Relevance GS-2 (Polity & Governance) Government policies & interventions in health sector Regulatory bodies (CDSCO) and reforms Public health & access to medicines Centre–State coordination in health governance GS-3 (Economy, S&T, Internal Security) Biotechnology & pharma innovation Industrial policy (PLI, Make in India) R&D ecosystem and knowledge economy Biosecurity and dual-use technology risks Biopharma – Basics What is Biopharma Biopharmaceuticals are medicines derived from living organisms like cells or microbes, including vaccines, monoclonal antibodies, gene therapies, unlike small-molecule chemical drugs synthesized through conventional pharmaceutical chemistry. Biologics vs Biosimilars Biologics are original complex biological medicines; biosimilars are highly similar follow-on versions with no clinically meaningful differences, offering cost-effective alternatives after reference product patent expiry. Budget 2026–27 Biopharma SHAKTI – Key Features Financial Allocation ₹10,000 crore outlay over multiple years targets R&D, manufacturing clusters, clinical ecosystems, regulatory strengthening, aiming to position India as a global biologics manufacturing hub. Regulatory Strengthening Focus on upgrading Central Drugs Standard Control Organisation to global regulatory standards, enhancing scientific review capacity, predictable approvals, pharmacovigilance, and harmonisation with WHO/ICH norms. Institutional Capacity Proposal to establish three new NIPERs and expand clinical trial infrastructure, creating skilled workforce pipelines for bioprocess engineering, regulatory science, translational research, and innovation-driven pharmaceutical growth. Rationale Behind the Push Health Transition Rising non-communicable diseases like cancer, diabetes, autoimmune disorders increase demand for advanced biologics, which offer targeted therapies and improved outcomes compared to conventional small-molecule drugs. Economic Opportunity Global biologics market valued above US$400 billion and growing faster than traditional pharma; capturing biosimilar share can boost exports, high-value manufacturing, skilled employment, and technology upgrading. Strategic Autonomy COVID-19 highlighted supply-chain vulnerabilities; domestic biologics capacity strengthens health security, vaccine sovereignty, critical drug resilience, aligning with Atmanirbhar Bharat and Make in India objectives. Constitutional / Legal Dimension Aligns with Article 47 duty to improve public health, while regulatory strengthening under Drugs and Cosmetics Act, 1940 framework must ensure safety, efficacy, and ethical clinical practices. Governance / Administrative Dimension Requires coordination between DBT, ICMR, CDSCO, state regulators, streamlined single-window approvals, and stronger bioethics oversight committees to maintain credibility in clinical research ecosystems.  Economic Dimension Biopharma shift supports move from volume-driven generics to value-driven innovation, enhancing gross value addition, export competitiveness, and integration into global pharmaceutical value chains. Social / Ethical Dimension Biosimilars can reduce therapy costs by 20–40% globally, improving affordability; however, ethical concerns around clinical trials, informed consent, and data integrity require strict oversight. Environmental / Tech / Security Dimension Biomanufacturing demands high bio-safety, waste management, cold-chain logistics, and digital bioprocess control systems; dual-use biotechnology risks necessitate strong biosecurity frameworks. Data & Evidence India supplies ~20% of global generic medicines by volume but small biologics share; biologics contribute disproportionately to global pharma revenues, showing clear upgrading potential. India hosts 3,000+ pharma companies and 10,000+ manufacturing units, providing strong base for biologics scaling if supported by advanced biologics infrastructure and regulatory credibility. Challenges / Gaps High capital intensity and long gestation periods deter private investment without risk-sharing or incentives, limiting domestic innovation beyond contract manufacturing and licensed biosimilar production. Regulatory unpredictability and limited reviewer capacity in biologics evaluation can delay approvals, affecting investor confidence and global acceptance of Indian biologics. Skilled workforce gaps in bioprocessing, regulatory science, and translational research constrain movement toward innovation-led biologics ecosystems. Fragmented industry–academia linkages reduce commercialization of research outputs, weakening innovation pipeline despite strong basic science institutions. Way Forward Expand PLI-like incentives for biologics, encourage public–private partnerships, and create shared biomanufacturing facilities to reduce entry barriers for domestic firms. Strengthen regulatory science ecosystem through international collaborations, joint reviews, and continuous training to build globally trusted approval systems. Promote innovation clusters linking NIPERs, IITs, startups, and hospitals for translational research and faster lab-to-market pathways. Ensure ethical clinical trial frameworks, patient registries, and real-world evidence systems to build credibility and safety assurance. Data & Facts India is the largest vaccine supplier globally, providing ~60% of global vaccine demand (UNICEF/WHO procurement). India accounts for ~20% of global generic drug exports by volume but <5% share in global biologics market, showing value-upgradation potential. Biologics constitute ~30–35% of global pharma market value but much smaller share in volume → high-value segment. USFDA-approved pharma plants: India has the highest number outside the USA (600+ facilities). R&D spending in Indian pharma ≈ 7–8% of revenue, lower than global innovators (15–20%), showing innovation gap. India’s bioeconomy crossed $80–90 billion and targets $300 billion by 2030 (DBT vision). Education & Skilling Budget Push Why in News ? Union Budget 2026–27 significantly raises education and skilling allocations to about ₹1.39 lakh crore (≈14.21% increase), alongside reforms linking education-to-employment pathways, signalling human-capital–led growth strategy. Relevance GS-2 – Polity & Governance / Social Justice (Education) Education policies & NEP 2020 Article 21A, DPSPs Welfare state & human capital Social sector governance GS-3 – Economy (Human Capital & Employment) Demographic dividend Skill mismatch & employability Labour productivity & growth Future of work & AI impact Education & Skilling Push – Basics Human Capital Logic Human capital theory (Schultz, Becker) views education and skills as productivity-enhancing investments, improving employability, incomes, innovation capacity, and long-term demographic dividend realization in a young country like India. Education–Employment Link Persistent skill mismatch and graduate unemployability necessitate aligning curricula with industry demand, integrating vocational exposure, apprenticeships, and digital skills to convert schooling into productive workforce participation. Budget 2026–27 – Key Announcements Higher Allocation Education Ministry outlay ≈ ₹1.39 lakh crore, reflecting prioritisation of school education, higher education, and digital learning ecosystems, reversing pandemic-era learning losses and strengthening foundational literacy and numeracy. Samagra Shiksha Samagra Shiksha allocation increased, supporting FLN under NIPUN Bharat, school infrastructure, teacher training, and inclusive education, aligning with NEP 2020’s holistic school framework. Kendriya Vidyalaya Sangathan KVS funding rise (~₹600 crore increase) expands access to quality schooling for mobile populations, defence families, and aspirational districts, promoting equity and standardized public education quality. Atal Tinkering Labs ATL allocation jumps from ~₹500 crore to ~₹2,700 crore, strengthening STEM, innovation culture, and early problem-solving exposure, nurturing future-ready skills and startup-oriented mindsets among students. University Townships Proposal for five university townships integrates academia, research parks, and industry clusters, aiming to replicate global knowledge hubs and enhance research–industry linkages and local economic ecosystems. Skill Development Push Skill Development Ministry outlay ≈ ₹8,885 crore supports PM Skill Development, apprenticeships, and industry-aligned training, targeting employability and formal workforce integration. Education-to-Employment Panel Expert panel to design pathways from education to employment, focusing on curriculum redesign, internships, entrepreneurship support, and AI-era skills forecasting for dynamic labour markets. Constitutional / Legal Dimension Advances Article 21A (Right to Education) and Directive Principles (Article 41, 45), reinforcing state duty toward education, skill-building, and opportunities for work under welfare-state constitutional vision. Governance / Administrative Dimension Requires convergence among MoE, MSDE, state governments, NCERT, Sector Skill Councils, and robust outcome-based monitoring, avoiding duplication across centrally sponsored and state schemes. Economic Dimension India’s median age ≈ 28 years offers demographic advantage; education–skilling investments raise labour productivity, female workforce participation, and formalisation, supporting sustained 8%+ growth aspirations. Social / Ethical Dimension Improved public education spending reduces intergenerational inequality, supports social mobility, and addresses rural–urban, gender, and socio-economic disparities in access to quality learning and skills. Tech / Future of Work Dimension AI and automation threaten routine jobs; policy emphasis on digital literacy, coding, AI, and design thinking prepares workforce for Industry 4.0 and gig economy realities. Data & Evidence ASER reports show persistent learning gaps post-pandemic; only a fraction of youth receive formal vocational training compared to 50–60% in developed economies, justifying higher skilling investments. PLFS data repeatedly highlights educated-youth unemployment, indicating degree–job mismatch, reinforcing need for vocational integration and industry-linked curricula. Challenges / Gaps Quality of spending remains concern; higher allocations may not translate into outcomes without teacher capacity, governance reforms, and accountability mechanisms. Fragmented skilling ecosystem and low industry participation limit placement outcomes, reducing credibility of short-term certification-based training programmes. Digital divide and unequal state capacities risk regional disparities in translating central allocations into actual learning and employment gains. Way Forward Shift from input-based to outcome-based financing, linking funds with measurable learning and placement outcomes through transparent dashboards and third-party audits. Deepen apprenticeship reforms, incentivise MSMEs for trainee absorption, and embed vocational exposure within secondary education under NEP 2020. Build district-level skill mapping aligned with local economic clusters, ensuring context-specific training and reducing migration distress. Strengthen teacher training and EdTech integration, combining technology with pedagogy rather than substituting human instruction. Data & Facts India has the world’s largest youth population (~65% below 35 years). Only ~5% of India’s workforce has formal vocational training, vs 50–60% in developed countries. ASER reports: basic reading and arithmetic levels still below pre-pandemic levels in many states. India spends ~4–4.5% of GDP on education, below NEP target of 6%. Female LFPR improving (~37%+) but still below global average, skilling critical for women’s employment. World Bank estimates one additional year of schooling raises earnings by ~8–10%. CCUS (Carbon Capture, Utilisation & Storage) Why in News ? Union Budget 2026–27 earmarks ₹20,000 crore for a national Carbon Capture, Utilisation and Storage (CCUS) scheme, signalling India’s intent to deploy deep-decarbonisation tools for hard-to-abate industrial sectors. Relevance GS-3 – Environment / Economy / Science & Tech Climate change mitigation Clean energy transition Environmental technologies Carbon markets & green economy GS-2 – International Relations / Global Agreements Paris Agreement & CBDR Global climate governance CCUS – Basics What is CCUS ? CCUS involves capturing CO₂ at source, compressing and transporting it for utilisation in products or permanent geological storage, preventing atmospheric release from fossil-fuel-intensive industrial activities. How it Works ? Process includes post-combustion or pre-combustion capture, pipeline or ship-based CO₂ transport, and injection into saline aquifers, depleted oil fields, or mineralisation systems for long-term containment. Budget Scheme – Key Features Financial Commitment ₹20,000 crore allocation provides catalytic funding for pilot projects, viability-gap support, and infrastructure creation, recognising CCUS as capital-intensive but essential for achieving net-zero by 2070 commitments. Sectoral Focus Priority given to steel, cement, fertilisers, refineries, and thermal power, where process emissions are unavoidable and electrification alternatives remain technologically or economically constrained in the medium term. Design Approach Emphasis on retrofit integration in existing facilities rather than greenfield-only plants, reducing transition costs, preserving assets, and enabling faster emissions reduction within India’s current industrial base. Technology Development Scheme promotes indigenous R&D, demonstration plants, and shared transport-storage networks, aiming to build domestic technological capability and reduce long-term dependence on imported climate technologies. Rationale Behind CCUS Push Climate Commitments India’s Panchamrit targets include emissions-intensity reduction and net-zero by 2070; CCUS offers pathway for deep decarbonisation where renewables alone cannot fully eliminate industrial emissions. Energy Transition Reality Coal still contributes major electricity share; CCUS enables cleaner fossil fuel use during transition, balancing developmental needs with climate responsibility under Common But Differentiated Responsibilities (CBDR) principle. Global Policy Trends Countries like USA, UK, Norway incentivise CCUS through tax credits and carbon markets; India’s move aligns with emerging carbon border adjustment pressures and global green competitiveness norms. Constitutional / Legal Dimension Supports Article 48A environmental protection duty and Article 21 right to life via pollution reduction, while future legal frameworks must regulate liability, monitoring, and long-term storage risks. Governance / Administrative Dimension Requires coordination among MoEFCC, DST, Ministry of Power, and state pollution boards, plus robust MRV systems (Monitoring, Reporting, Verification) to ensure captured carbon is permanently contained. Economic Dimension CCUS can protect energy-intensive export sectors from carbon tariffs, preserve jobs, and create new value chains in carbon-based products, enhanced oil recovery, and green construction materials. Environmental Dimension Potential to reduce large-volume industrial emissions, yet lifecycle assessments must ensure net-negative outcomes, avoiding energy-intensive capture processes that indirectly increase fossil fuel consumption. Technology / Security Dimension CO₂ pipelines and storage sites require leak-proof infrastructure, seismic assessments, and cybersecurity for digital monitoring systems, as accidental releases could undermine climate and safety objectives. Data & Evidence IEA estimates global net-zero pathways require capturing 7–8 gigatonnes CO₂ annually by 2050, while current deployment remains below 10% of required scale, showing large expansion necessity. India’s steel and cement sectors together contribute significant industrial emissions share, making them prime candidates where CCUS yields high marginal abatement impact compared to incremental efficiency improvements. Challenges / Gaps High capture costs (often US$40–100 per tonne globally) and uncertain carbon pricing reduce private-sector enthusiasm without predictable policy incentives or carbon-market integration. Long-term storage liability, leakage risks, and public acceptance concerns create regulatory and social hurdles, requiring transparent risk communication and strict environmental safeguards. CCUS may risk moral hazard by prolonging fossil-fuel dependence if not paired with renewable expansion and efficiency improvements. Way Forward Develop carbon markets and pricing signals to make CCUS financially viable, integrating it with India’s emerging Carbon Credit Trading Scheme framework. Create CCUS clusters near industrial hubs and sedimentary basins, lowering transport costs and enabling shared infrastructure for multiple emitters. Encourage international technology partnerships and climate finance to de-risk early investments and accelerate learning curves. Ensure CCUS complements, not substitutes, renewable expansion and energy efficiency, maintaining balanced decarbonisation strategy. Data & Facts CCUS currently captures ~45–50 million tonnes CO₂/year globally, while net-zero pathways need gigatonne-scale capture. IEA: CCUS required for ~15% of cumulative emissions reduction by 2070 globally. Steel and cement together contribute ~15–18% of global CO₂ emissions. Norway’s Longship project is a flagship national CCUS model. IPCC recognises CCUS as essential for hard-to-abate sectors. India is the 3rd largest CO₂ emitter, but per-capita emissions remain far below developed nations. High-Speed Rail Corridors Why in News ? Union Budget 2026–27 grants approval to seven high-speed rail corridors spanning about 4,000 km with planned ₹16 lakh crore outlay, aimed at accelerating regional connectivity and economic integration. Relevance GS-3 – Infrastructure / Economy Transport infrastructure Logistics efficiency Investment & growth multipliers Low-carbon mobility High-Speed Rail – Basics Concept High-Speed Rail (HSR) refers to passenger rail systems operating generally above 250 km/h on dedicated tracks, using advanced signalling, grade separation, and aerodynamic rolling stock for speed, safety, and reliability. Global Context Countries like Japan, China, France demonstrate HSR’s role in reducing air-road congestion, cutting travel time, boosting regional economies, and enabling low-carbon mass mobility transitions. Budget Announcement – Key Features Identified Corridors Corridors include Mumbai–Pune, Pune–Hyderabad, Hyderabad–Bengaluru, Hyderabad–Chennai, Chennai–Bengaluru, Delhi–Varanasi, Varanasi–Siliguri, linking major economic, cultural, and demographic growth centres. Financial Scale Estimated ₹16 lakh crore investment signals long-term infrastructure commitment, crowding-in private and multilateral finance, and positioning railways as backbone of India’s future transport and logistics architecture. Travel Time Reduction Expected to reduce inter-city travel to 2–3 hours on many routes, with some segments targeting sub-one-hour connectivity, reshaping business travel, tourism flows, and labour mobility patterns. Railway Capex Push Railways receive ₹2.78 lakh crore+ capital outlay, reflecting prioritisation of network modernisation, safety, capacity augmentation, and technological upgrading alongside dedicated freight and passenger corridors. Rationale Behind HSR Push Economic Multiplier Large rail projects generate high forward–backward linkages in steel, cement, electronics, construction, and services, supporting job creation and regional industrial ecosystems during construction and operation phases. Urbanisation & Mobility Rapid urbanisation requires efficient inter-city mobility; HSR enables polycentric urban growth, reducing megacity pressure and promoting satellite-city development along transport corridors. Energy & Climate Logic Electrified HSR has lower per-capita emissions than aviation and highways, supporting India’s climate goals and reducing fossil-fuel import dependence in the transport sector. Constitutional / Legal Dimension Advances cooperative federalism under Union–State infrastructure coordination, while land acquisition must respect RFCTLARR Act 2013, ensuring fair compensation, consent, and rehabilitation safeguards. Governance / Administrative Dimension Requires strong project management, inter-ministerial coordination, and institutional capacity in Indian Railways, NHSRCL, state agencies, with transparent procurement and time-bound execution to avoid cost overruns. Economic Dimension Improved connectivity can raise regional productivity, tourism revenues, real estate development, and supply-chain efficiency, contributing to sustained high-growth trajectory and logistics cost reduction. Social / Ethical Dimension Better connectivity improves access to opportunities, education, healthcare, yet displacement, land conflicts, and fare affordability concerns require inclusive planning and stakeholder consultations. Technology / Security Dimension HSR depends on advanced signalling, Kavach-based safety systems, automatic train control, and cyber-secure digital networks, making technological reliability and data security critical national priorities. Environmental Dimension While rail is greener than road or air, construction impacts on forests, wildlife corridors, and land use necessitate rigorous EIAs, mitigation plans, and compensatory afforestation. Data & Evidence Rail is among the most energy-efficient transport modes; globally, HSR corridors often shift significant passenger share from aviation on 300–800 km routes, reducing congestion and emissions. India’s logistics costs remain around 13–14% of GDP; faster, efficient rail networks can structurally reduce these costs, enhancing export competitiveness. Challenges / Gaps High capital intensity and long gestation risk fiscal stress and delays, especially with complex land acquisition and multi-state coordination requirements. Ensuring commercial viability and adequate ridership is critical; poorly estimated demand could burden public finances and reduce cost-effectiveness. Technology dependence on foreign partners may limit domestic value addition without strong localisation and technology-transfer frameworks. Way Forward Adopt phased implementation prioritising high-demand corridors, ensuring financial sustainability and early success demonstration. Promote Make in India for rolling stock and signalling, enhancing domestic manufacturing and technology absorption. Integrate HSR with multimodal transport planning, including metro, bus, and airports for seamless last-mile connectivity. Ensure transparent cost–benefit analysis and public communication to build trust and social acceptance. Data & Facts Japan’s Shinkansen has operated since 1964 with near-zero fatal accidents → global safety benchmark. Rail emits up to 70–80% less CO₂ per passenger-km than aviation (IEA estimates). Infrastructure multiplier: ₹1 spent can generate ₹2–2.5 economic output (various infrastructure studies). China built 40,000+ km HSR network, linking regional growth clusters. India’s logistics cost 13–14% of GDP vs 8–9% in developed countries. Cheaper Cancer Drugs & Caregiver Training Why in News ? Union Budget 2026–27 announces customs duty exemption on 17 cancer-related drugs, addition of 7 rare diseases to concessional import list, and training of 1.5 lakh caregivers, signalling targeted health-sector relief. Relevance GS-2 – Social Justice / Health Public health policy Access to medicines Welfare schemes Right to health dimension GS-3 – Economy (Health Sector) Pharma industry Health workforce economics Social sector expenditure Context & Basics Cancer & Rare Diseases in India India witnesses rising cancer burden and significant rare disease treatment gaps, driven by high drug costs, import dependence, limited domestic R&D, and shortage of trained caregiving and allied health workforce. Caregiver Role Caregivers provide long-term physical, emotional, and rehabilitative support, especially critical for oncology, geriatrics, and chronic diseases, reducing hospital load and improving treatment adherence and outcomes. Budget Announcements – Key Features Cheaper Cancer Drugs Full customs duty exemption on 17 cancer-related drugs and medicines lowers import costs, improving affordability for patients undergoing long-term, high-cost oncology treatment. Rare Diseases Support Seven additional rare diseases included in duty-free import list for drugs, medicines, and special foods for personal use, expanding coverage under India’s evolving rare disease policy ecosystem. Caregiver Training 1.5 lakh caregivers to be trained under National Skills Qualifications Framework (NSQF), integrating skills like wellness, yoga, basic medical operations, assistive devices, strengthening community-level healthcare support. Health Expenditure Snapshot Health Ministry allocation ≈ ₹1.05 lakh crore for FY 2026–27, reflecting modest growth (~6–9%), with prioritisation of targeted relief over large headline expansion. Rationale Behind the Measures Affordability & Access High out-of-pocket expenditure (OOPE) in cancer care pushes families into poverty; tax exemptions directly reduce treatment costs where domestic alternatives are unavailable. Demographic & Epidemiological Transition Ageing population and rising NCD prevalence increase demand for long-term care and palliative services, necessitating trained caregiver workforce beyond doctors and nurses. Health System Efficiency Trained caregivers enable task shifting, reduce doctor overload, shorten hospital stays, and strengthen continuum of care from hospitals to homes. Constitutional / Legal Dimension Advances Article 21 (Right to Life) through improved access to essential medicines and care, and aligns with Article 47 directing the State to improve public health and nutrition. Governance / Administrative Dimension Requires coordination among MoHFW, MSDE, Customs authorities, state health departments, and standardised certification under NSQF to ensure quality, safety, and portability of caregiver skills. Economic Dimension Reduced drug costs ease catastrophic health expenditure, while caregiver skilling creates health-sector employment, especially for women, supporting inclusive growth and service-sector expansion. Social / Ethical Dimension Improves equity in access to life-saving drugs for cancer and rare diseases; ethical imperative to support vulnerable patients with limited treatment alternatives. Formal recognition of caregivers enhances dignity of care work, often undervalued and informal. Health System / Technology Dimension Complements expansion of clinical trial sites, drug regulatory strengthening, and allied health professional scaling, moving toward team-based, technology-supported care models. Data & Evidence Cancer treatment can cost several lakhs per year, with medicines forming a major share of OOPE; duty exemptions can meaningfully reduce end prices for imported therapies. India faces a shortage of allied health professionals relative to demand, particularly in geriatrics, oncology support, and home-based care. Challenges / Gaps Modest overall health budget growth limits systemic expansion of public healthcare infrastructure. Duty exemptions help only imported drugs; absence of domestic manufacturing keeps long-term costs vulnerable to exchange-rate and supply shocks. Caregiver training must ensure quality control, supervision, and ethical standards to avoid unsafe task shifting. Way Forward Incentivise domestic production of oncology and rare-disease drugs through R&D grants, PLI-like schemes, and faster regulatory approvals. Integrate trained caregivers into Ayushman Bharat–PMJAY, geriatric care, and palliative care programmes for institutional linkage and demand certainty. Expand public oncology infrastructure and early screening to complement drug affordability measures. Establish clear legal scope of practice for caregivers, ensuring patient safety and professional accountability. Data & Facts Cancer cases in India projected to cross 1.5 million annually (ICMR estimates). OOPE still forms ~48–50% of total health expenditure in India, among highest globally. Rare diseases affect ~70–90 million Indians (estimated). India has doctor–population ratio ~1:1500 (below WHO ideal 1:1000) → need allied workforce. Palliative care access remains limited; only ~1–2% of those in need receive it. Waste-to-Energy (WtE) Why in News ? Urban India’s rising solid waste burden, landfill crises, and policy push under Solid Waste Management Rules 2016 (amended) have renewed focus on Waste-to-Energy (WtE) as a waste-processing and energy-recovery solution. Relevance GS-3 – Environment / Ecology Solid waste management Pollution control Circular economy Renewable energy debates GS-2 – Governance (Local Bodies) Urban Local Bodies’ role Environmental regulation Waste-to-Energy – Basics Definition Waste-to-Energy (WtE) converts non-recyclable solid waste into usable energy—electricity, heat, or fuel through thermal, chemical, or biological processes, reducing landfill volumes while recovering embedded energy from waste streams. Major Technologies Incineration burns waste at high temperatures for steam-electricity generation; gasification/pyrolysis convert waste into syngas with limited oxygen; anaerobic digestion uses microbes to produce biogas from organic waste. Policy & Regulatory Framework Solid Waste Management Rules SWM Rules 2016 mandate source segregation, scientific processing, and RDF promotion, positioning WtE as a residual-waste treatment option after recycling and composting to reduce landfill dependency. Institutional Ecosystem MoHUA, CPCB, State Pollution Control Boards, ULBs regulate and monitor WtE plants, setting emission norms, environmental clearances, and compliance standards for air pollutants and ash disposal. Rationale for WtE Push Urbanisation & Waste Surge India generates ~1.5–1.7 lakh tonnes of MSW daily, projected to rise with urbanisation and consumption; WtE offers volume reduction and partial energy recovery from otherwise landfilled waste. Land Scarcity Megacities face landfill saturation and land constraints; WtE can reduce waste volume up to ~80–90%, extending landfill life and easing urban land-use pressures. Climate Link Diverting waste from dumpsites reduces methane emissions, a potent greenhouse gas; controlled combustion with safeguards can be climatically preferable to open dumping and burning. Constitutional / Legal Dimension Supports Article 48A environmental protection and Article 21 right to clean environment, while invoking polluter pays and precautionary principles recognised in Indian environmental jurisprudence. Governance / Administrative Dimension Effective WtE requires strict segregation at source, reliable feedstock quality, long-term municipal contracts, and credible monitoring capacity, often weak across Urban Local Bodies with fiscal and technical constraints. Economic Dimension WtE plants are capital-intensive with high operating costs; financial viability depends on tipping fees, power tariffs, and assured waste supply agreements, raising concerns over long-term fiscal sustainability. Environmental Dimension Poorly managed WtE emits dioxins, furans, particulate matter, heavy metals; safe operation demands advanced flue-gas treatment, continuous emission monitoring, and scientific ash disposal. Social / Ethical Dimension Informal waste pickers risk livelihood loss if recyclable streams divert to incineration; inclusive policy must integrate them into segregation, recycling value chains, and formal waste management systems. Technology Dimension Indian waste has high moisture and low calorific value due to organic content, reducing incineration efficiency; technological adaptation and better segregation are critical for optimal plant performance. Data & Evidence India has 20+ WtE plants and over 100 biogas facilities operational; several plants historically faced shutdowns due to poor segregation, community opposition, and emission concerns. Studies show recycling often saves more energy and emissions than incineration, supporting the waste hierarchy prioritising reduce–reuse–recycle before recovery. Challenges / Gaps Mixed waste collection undermines calorific value and raises pollution risks, making many WtE projects technologically and environmentally suboptimal. Community resistance arises from health concerns, siting issues, and trust deficits regarding emission compliance and monitoring transparency. Overemphasis on WtE may create perverse incentives to burn recyclables, discouraging circular-economy practices like composting and material recovery. Way Forward Enforce strict source segregation and decentralised composting for wet waste, reserving WtE only for non-recyclable, high-calorific residual fractions consistent with waste-hierarchy principles. Strengthen real-time emission monitoring, public disclosure, and third-party audits to build trust and ensure environmental compliance. Integrate informal workers into formal systems through MRFs, cooperatives, and social security, ensuring just transition. Promote circular economy policies, EPR, and waste reduction to address root causes rather than relying solely on end-of-pipe solutions. Data & Facts India generates ~55–60 million tonnes MSW annually, projected to double by 2030. ~70–75% waste remains unsegregated in many cities. Methane from landfills has 28x higher warming potential than CO₂ (IPCC). EU waste hierarchy prioritises: Reduce → Reuse → Recycle → Recover → Dispose. Sweden imports waste for energy due to advanced segregation and WtE systems. Livestock & Fisheries Push Why in News ? Union Budget 2026–27 announces higher allocations and new schemes for livestock and fisheries, focusing on value-chain development, entrepreneurship, and rural employment, signalling diversification of farm incomes beyond crop agriculture. Relevance GS-3 – Agriculture / Economy Allied agriculture sectors Blue economy Food processing & exports Rural income diversification GS-2 – Governance / Welfare Farmer welfare policies Institutional credit systems Sector Basics Livestock Sector Livestock includes dairy, poultry, sheep-goat, and allied activities, contributing significantly to agricultural GVA, nutrition security, and supplementary farmer incomes, especially for smallholders and landless households. Fisheries Sector Fisheries span marine, inland, and aquaculture systems, supporting coastal and inland livelihoods, exports, and protein supply, with India among the top global fish producers. Budget Announcements – Key Features Fisheries Push Enhanced outlay for Fisheries Ministry (~₹2,761.8 crore), supporting one of the world’s largest inland reservoir networks (~31.5 lakh hectares), targeting value addition, infrastructure, and export competitiveness. Value-Chain Development Focus on cold chains, processing, storage, and market linkages, aiming to reduce post-harvest losses and increase farmer realisation across fisheries and animal husbandry value chains. Entrepreneurship & Start-ups Promotion of start-ups, women-led groups, and FPOs in fisheries and livestock, integrating them into formal value chains and improving access to credit, technology, and markets. Animal Husbandry Allocation Animal Husbandry Ministry allocation (~₹6,153.46 crore), reflecting ~21% increase, directed toward breed improvement, veterinary services, and disease prevention initiatives. Credit-Linked Support Push for entrepreneurship via credit-linked subsidy schemes, encouraging private investment in dairy units, hatcheries, feed mills, and processing enterprises. Rationale Behind the Push Income Diversification Non-crop sectors stabilise farm incomes against monsoon and price volatility, supporting the policy goal of doubling farmers’ income through diversification. Nutrition Security Livestock and fish provide high-quality protein and micronutrients, addressing malnutrition and dietary diversity concerns highlighted in nutrition surveys. Export Potential Marine products are major agri-exports; value addition and quality compliance can boost foreign exchange earnings and global competitiveness. Constitutional / Legal Dimension Aligns with Article 48 directive to improve animal husbandry on scientific lines and Article 47 on nutrition and public health. Governance / Administrative Dimension Implementation requires coordination among DAHD, Department of Fisheries, state veterinary services, MPEDA, NABARD, and robust disease surveillance and extension systems. Economic Dimension Livestock contributes around 30%+ of agricultural GVA in recent years; strengthening these sectors enhances rural employment, MSME growth, and value-added exports. Social / Ethical Dimension Livestock and fisheries support women’s economic participation and livelihoods of marginal communities; ethical issues include animal welfare and sustainable fishing practices. Environmental Dimension Overfishing, habitat degradation, and livestock methane emissions pose sustainability concerns; policies must integrate sustainable aquaculture, breed management, and climate-smart practices. Technology Dimension Adoption of genetic improvement, vaccines, IoT-based monitoring, and modern feed practices can raise productivity and reduce disease and mortality risks. Data & Evidence India ranks among the largest milk and fish producers globally; fisheries exports have crossed billions of dollars annually, reflecting strong global demand. Post-harvest losses in fisheries and perishables remain high without cold-chain infrastructure, justifying logistics investments. Challenges / Gaps Disease outbreaks (e.g., in poultry or cattle) can cause large income shocks; veterinary infrastructure and surveillance remain uneven across states. Fragmented supply chains and limited processing capacity reduce farmer share in consumer prices. Environmental stress and climate variability threaten fish stocks and fodder availability. Way Forward Strengthen cold-chain and processing infrastructure through PPP models and viability-gap funding. Expand animal health coverage, vaccination drives, and digital livestock registries for traceability and disease control. Promote sustainable fisheries management—regulated catch, aquaculture standards, and habitat conservation. Integrate farmers into FPOs and cooperatives to improve bargaining power and market access. Data & Facts Livestock contributes ~30%+ to agricultural GVA, higher than crops in some years. India is largest milk producer globally. Fisheries sector grows at ~8–10% annually, among fastest in agriculture. Marine exports cross $7–8 billion annually. Protein deficiency remains concern; per capita protein intake below global norms. FAO: aquaculture is the fastest-growing food production sector globally. Rakhigarhi & Harappan Heritage Why in News ? Union Budget 2026–27 proposes developing Rakhigarhi, a major Harappan civilisation site in Haryana, as a cultural-tourism hub, but local concerns over slow progress and land issues triggered public dissatisfaction. Relevance GS-1 – History & Culture Indus Valley civilisation Archaeology & heritage Art & culture GS-2 – Governance / Culture Heritage conservation policy Role of ASI & legislation Rakhigarhi – Basics Location & Identity Rakhigarhi, located in Hisar district, Haryana, is among the largest Harappan (Indus Valley) sites in the means subcontinent, often compared with Mohenjo-daro and Harappa in scale and complexity. Chronology Site dates roughly to 2600–1900 BCE (Mature Harappan phase), with evidence of earlier and later cultural layers, helping reconstruct the evolution and decline of the Indus Valley Civilisation. Archaeological Significance Excavations revealed planned streets, drainage systems, craft production areas, burials, and artefacts, indicating advanced urban planning, trade networks, and social organisation typical of Harappan culture. Key Budget & Policy Announcement Heritage Development Push Government proposes integrated site development, museum creation, and tourism infrastructure to convert Rakhigarhi into a global heritage destination, linking conservation with local economic opportunities. Part of Wider Revamp Rakhigarhi included in plan to revamp multiple archaeological sites, reflecting policy shift toward heritage-led development and cultural tourism as soft-power and local-growth instruments. Historical & Cultural Importance Civilisational Value Rakhigarhi strengthens understanding that Harappan civilisation extended deep into present-day India, countering earlier Pakistan-centric geographic perception and enriching India’s civilisational narrative. Knowledge Contributions Findings on diet, burial practices, pottery, metallurgy, and settlement patterns provide insights into Harappan lifestyle, trade, and social differentiation, valuable for archaeology and ancient history studies. Constitutional / Legal Dimension Conservation aligns with Article 49 obligating State to protect monuments of national importance and with Ancient Monuments and Archaeological Sites and Remains Act, 1958 governing protected heritage sites. Governance / Administrative Dimension Development requires coordination among ASI, State Government, Tourism Ministry, and local administration, balancing heritage protection, land acquisition, rehabilitation, and community participation. Economic Dimension Heritage tourism can generate local employment, MSME growth, hospitality demand, and rural infrastructure, turning archaeological assets into sustainable economic multipliers for surrounding communities. Social / Ethical Dimension Local resistance arises when communities perceive displacement risks, inadequate compensation, or exclusion from benefits, highlighting need for participatory and inclusive heritage-development models. Cultural Diplomacy / Soft Power Showcasing Harappan heritage strengthens India’s civilisational diplomacy, global academic collaborations, and cultural branding, similar to how Egypt leverages ancient heritage for soft power. Data & Evidence Rakhigarhi spreads across multiple mounds over large area, making it one of the most extensive Harappan sites; DNA and material studies from the site informed debates on Harappan origins. Challenges / Gaps Slow excavation pace, funding constraints, and conservation delays reduce research potential and public trust in development promises. Encroachments and agricultural activity risk site degradation, threatening stratigraphic integrity and long-term archaeological value. Over-commercialisation may compromise authenticity and scientific conservation if tourism priorities overshadow archaeological protocols. Way Forward Adopt community-based heritage management, ensuring locals gain from tourism via jobs, homestays, and services, building local stewardship for conservation. Increase archaeological funding, scientific excavation, and digital documentation using GIS, 3D mapping, and residue analysis for global-standard research. Develop site museums and interpretation centres for public education, linking Rakhigarhi with broader Harappan heritage circuits. Data & Facts Rakhigarhi spans ~350 hectares+, making it among the largest Harappan sites. Indus Valley Civilisation covered ~1.3 million sq km, larger than Egypt & Mesopotamia combined. Harappans used standardised bricks (1:2:4 ratio) → advanced civil engineering. No monumental temples/palaces found → suggests relatively egalitarian urban planning. DNA studies show complex indigenous population history without simplistic invasion narratives.

Daily PIB Summaries

PIB Summaries 31 January 2026

Content Economic Survey 2025–26 Connectivity Projects under the Northeast Economic Corridor (NEEC) Economic Survey 2025–26 Context Economic Survey 2025–26, tabled ahead of Union Budget, projects robust medium-term growth, historically low inflation, strong fiscal credibility, and resilient financial buffers despite adverse global economic conditions. Background and context The Economic Survey is an annual, non-statutory policy document prepared by the Chief Economic Adviser, offering macroeconomic assessment, risk analysis, and reform priorities guiding fiscal and monetary policymaking. Relevance GS 3 (Economy): GDP growth projections, inflation management, fiscal consolidation, capital expenditure, banking sector health, trade performance, external sector resilience, and financial inclusion. State of the Indian economy: macro overview Growth outlook India’s real GDP growth for FY27 is projected at 6.8–7.2%, with potential growth estimated around 7%, reflecting sustained demand, investment momentum, and structural reforms amid global uncertainty. First Advance Estimates indicate FY26 GDP growth at 7.4% and GVA growth at 7.3%, supported by agriculture recovery, manufacturing acceleration, and services-led expansion. Inflation trends India recorded historic low CPI inflation averaging 1.7% during April–December 2025, driven by food and fuel disinflation, making it one of the sharpest inflation declines among EMDEs. RBI revised FY26 inflation forecast downward from 2.6% to 2.0%, while IMF projects 2.8% in FY26 and 4.0% in FY27, indicating a benign inflation outlook. Sectoral drivers of growth Agriculture and allied activities Agriculture is estimated to grow 3.1% in FY26, stabilising rural demand, supported by favourable monsoon, improved crop yields, and agricultural GVA growth of 3.6% in H1 FY26. Allied sectors like livestock and fisheries recorded stable 5–6% growth, enhancing income diversification, resilience, and reducing agriculture’s vulnerability to climatic shocks. Industry and manufacturing The industrial sector is projected to grow 6.2% in FY26, with H1 growth of 7.0%, exceeding pre-COVID trends, signalling broad-based industrial recovery. Manufacturing GVA surged 7.72% in Q1 and 9.13% in Q2 FY26, reflecting structural revival driven by PLI schemes, infrastructure push, and improved corporate balance sheets. PLI schemes across 14 sectors attracted over ₹2 lakh crore investment, generated ₹18.7 lakh crore incremental output, and created 12.6 lakh jobs by September 2025. Services sector Services grew 9.1% in FY26, with GDP share rising to 53.6% and GVA share to a historic 56.4%, underlining India’s transition towards a services-driven economy. India became the 7th largest services exporter, doubling its global share from 2% (2005) to 4.3% (2024), led by IT, financial, and professional services. Employment and labour market trends Total employment reached 56.2 crore persons in Q2 FY26, with net addition of 8.7 lakh jobs, reflecting labour market resilience amid economic expansion. PLFS data shows LFPR at 56.1%, female LFPR at 35.3%, WPR at 53.4%, and unemployment declining to 4.8%, indicating improved labour absorption. Organised manufacturing employment rose 6% YoY in FY24, adding over 10 lakh jobs, confirming industrial recovery translating into formal employment generation. Trade and external sector performance India’s total exports reached USD 825.3 billion in FY25 and USD 418.5 billion in H1 FY26, driven primarily by services and non-petroleum exports. Services exports hit a record USD 387.5 billion in FY25, growing 13.6% YoY, reinforcing India’s global competitiveness in knowledge-intensive sectors. India’s share in global merchandise exports rose from 1% (2005) to 1.8% (2024), reflecting gradual integration into global trade networks. External buffers Foreign exchange reserves stood at USD 701.4 billion (January 2026), providing 11 months import cover and covering 94% of external debt, strengthening external shock absorption capacity. India remained the world’s largest remittance recipient with USD 135.4 billion inflows in FY25, increasingly sourced from advanced economies, reflecting skilled workforce migration. Industrial output indicators Index of Industrial Production (IIP) grew 7.8% in December 2025, highest in over two years, driven by manufacturing growth of 8.1%, mining 6.8%, and electricity 6.3%. Eight Core Industries Index showed strong momentum, with cement growth at 13.5% and steel at 6.9%, reflecting sustained infrastructure and construction demand. Fiscal developments Strengthened fiscal credibility India received three sovereign credit rating upgrades in 2025, reflecting improved fiscal discipline, revenue buoyancy, and commitment to capital-led growth. Revenue and taxation Centre’s revenue receipts increased from 8.5% of GDP (FY16–20) to 9.2% of GDP in FY25, supported by buoyant non-corporate tax collections. Direct taxes’ share rose to 58.8% of total taxes in FY25, with income-tax filers increasing from 6.9 crore (FY22) to 9.2 crore (FY25). Capital expenditure and debt Effective capital expenditure rose to 4% of GDP in FY25, sustaining growth while reducing general government debt-GDP ratio by 7.1 percentage points since 2020. Under Special Assistance to States for Capital Investment (SASCI), States maintained capital spending at 2.4% of GDP, supporting cooperative fiscal federalism. Monetary and financial sector developments Monetary policy and liquidity RBI reduced repo rate by 100 basis points to 5.25% during April–December 2025, complemented by CRR cut to 3%, enhancing credit availability. System liquidity remained in surplus at ₹1.89 lakh crore in FY26, aided by OMOs and forex swaps, supporting monetary transmission. Banking sector health Gross NPAs declined to multi-decadal lows, with CRAR at 17.2%, ROE at 12.5%, and ROA at 1.3%, indicating strong banking sector fundamentals. Bank credit growth accelerated to 14.5% YoY in December 2025, with MSME credit expanding 21.8%, especially micro and small enterprises. Financial inclusion and capital markets RBI Financial Inclusion Index improved from 64.2 (March 2024) to 67.0 (March 2025), reflecting enhanced access, usage, and quality of financial services. Household financialisation deepened, with equity and mutual funds share rising to 15.2% of savings in FY25, and household equity wealth increasing ₹53 lakh crore since 2020. Conclusion: mains-ready synthesis Economic Survey 2025–26 portrays India as a resilient, high-growth economy with strong macro fundamentals, low inflation, robust fiscal credibility, deepening financial markets, and capacity to withstand global shocks while sustaining inclusive growth. Connectivity Projects under the Northeast Economic Corridor (NEEC) Why is it in news? In January 2026, the Government informed Parliament about progress under the Northeast Economic Corridor, PM-DevINE projects, and major road, rail, and digital connectivity expansion across the North-Eastern Region. Relevance GS 2 (Polity / Governance): Cooperative federalism through NEC and HLTFs, Centre–State coordination, role of DoNER, digital governance via monitoring portals, and implementation capacity. GS 3 (Infrastructure / Regional Development / Security): Roads, railways, digital connectivity, PM-DevINE, logistics efficiency, employment generation, Act East Policy linkage, and strategic border connectivity. Background and context Strategic importance of the North-Eastern Region (NER) The North-East is strategically vital due to its international borders, Act East Policy relevance, security sensitivities, and historical infrastructure deficit, making connectivity central to integration and development. Institutional trigger During the 72nd Plenary of the North Eastern Council (NEC) in December 2024, consensus led to creation of sector-specific High-Level Task Forces to accelerate economic transformation. Northeast Economic Corridor (NEEC) High-Level Task Force on NEEC A dedicated High-Level Task Force on NEEC, convened by the Chief Minister of Mizoram, was constituted to assess infrastructure gaps, investment ecosystem, and formulate corridor-based development strategies. The Task Force includes the Union DoNER Minister and Chief Ministers of Assam, Meghalaya, and Manipur, ensuring cooperative federalism and regional coordination in corridor planning. Mandate and objectives The NEEC Task Force focuses on evaluating existing economic infrastructure, identifying logistics and connectivity gaps, and recommending policy measures to attract private investment into the North-East. PM-DevINE scheme: development backbone Objectives of PM-DevINE PM-DevINE aims at rapid and holistic development of NER through infrastructure creation, social sector projects, livelihood enhancement for youth and women, and bridging long-standing regional development gaps. Project scale and funding Since inception, 48 projects worth ₹6,044.36 crore have been sanctioned under PM-DevINE up to January 2026, reflecting focused public investment in the North-East. Road connectivity expansion National Highways growth National Highway length in NER expanded from 10,905 km in 2014 to 16,207 km by April 2025, significantly improving inter-state and national connectivity. Currently, 177 highway projects covering 3,635 km, costing ₹87,119 crore, are under various stages of implementation across the region. Rural roads under PMGSY Under PMGSY, 17,666 road works spanning 89,503 km and 2,396 bridges were sanctioned, strengthening last-mile connectivity in remote and hilly areas. Of these, 16,547 road works (81,448 km) and 2,126 bridges have been completed, with total expenditure of ₹53,353.49 crore, including State contributions. Connectivity projects under MDoNER MDoNER sanctioned 647 road and bridge projects worth ₹8,260.88 crore, of which 500 projects costing ₹4,915 crore have already been completed, accelerating regional mobility. These projects focus on inter-district connectivity, border area access, and linking production clusters with markets, particularly in difficult terrain. Rail connectivity in the North-East Status of railway projects As of April 2025, 12 railway projects (8 new lines and 4 doubling projects) spanning 777 km and costing ₹69,342 crore were sanctioned in the North-East. Out of the sanctioned length, 278 km has been commissioned, improving passenger mobility, freight movement, and integration with national rail networks. Structural constraint Railway projects are executed on a zonal basis, not State-wise, reflecting cross-boundary nature but also complicating coordination and monitoring in the North-East. Digital connectivity expansion BharatNet progress Under BharatNet, 6,355 Gram Panchayats in the North-East were made service-ready for high-bandwidth broadband connectivity by December 2025. Mobile connectivity Under the 4G Saturation Project and allied schemes, 3,718 mobile towers have been commissioned, covering 5,366 villages and locations, reducing digital isolation. Monitoring and governance mechanisms Multi-layered monitoring framework Primary monitoring responsibility lies with State governments and implementing agencies, while DoNER oversees projects through Field Technical Support Units, Project Quality Monitors, and third-party inspections. Inspection reports are uploaded on the Poorvottar Vikas Setu portal, enabling transparent, real-time digital monitoring and accountability. Integration with PM Gati Shakti Field units update project progress on the PM Gati Shakti National Master Plan portal, ensuring inter-ministerial coordination and reducing infrastructure silos. Implementation challenges Project timelines are affected by difficult terrain, land acquisition constraints, statutory clearances, forest approvals, and logistical bottlenecks, common in the ecologically sensitive North-East. Economic and strategic benefits Economic integration and growth Improved connectivity enables faster movement of agricultural produce, essential goods, and industrial inputs, lowering logistics costs and enhancing market access for North-Eastern States. Employment and livelihoods Infrastructure expansion generates direct construction employment and indirect opportunities in tourism, logistics, agro-processing, and small industries, supporting inclusive regional growth. Strategic and social integration Enhanced connectivity strengthens national integration, improves border area accessibility, boosts security logistics, and aligns the North-East more closely with India’s economic mainstream. Way forward: policy focus Corridor-based planning under NEEC should be aligned with Act East Policy, cross-border trade potential, and value-chain development to convert connectivity into sustained economic transformation. Greater private sector participation, faster clearances, and environmentally sensitive infrastructure design are essential to maximise returns on connectivity investments. Mains-ready takeaway The Northeast Economic Corridor, supported by PM-DevINE and multi-sectoral connectivity expansion, marks a shift from infrastructure deficit correction to growth-oriented regional integration, strengthening economic, strategic, and social cohesion in the North-East.

Editorials/Opinions Analysis For UPSC 31 January 2026

Content India’s Green Steel Transition Signing of FTAs Is a Start: Measuring Success Through Global Market Gains India’s Green Steel Transition Why is it in News? India committed at COP30 (Belém, Brazil) to submit a more ambitious revised NDC, signalling deeper economy-wide decarbonisation, with steel identified as a critical hard-to-abate sector. Relevance GS 2 (International Relations): India’s revised NDC, COP commitments, CBAM implications, and climate diplomacy shaping trade and industrial strategy. GS 3 (Economy): Industrial decarbonisation, steel sector transition, green hydrogen, carbon pricing, competitiveness, and stranded asset risks. Practice Question Discuss the economic and strategic risks of continued investment in coal-based steel infrastructure in India in the context of global carbon pricing and CBAM.(250 Words) Basics: Steel Sector and Climate Linkages Importance of Steel in India’s Growth Model Steel underpins infrastructure, housing, manufacturing, and defence, with India aiming to raise production from ~125 MT currently to over 400 MT by mid-century. Emissions Profile of Indian Steel Steel contributes ~12% of India’s total CO₂ emissions, primarily due to coal-based blast furnace routes, making it among the most carbon-intensive industrial sectors. The Twin Challenge: Development vs Decarbonisation Avoiding Carbon Lock-in Steel plants have long lifespans of 30–40 years, meaning continued investment in coal-based blast furnaces risks locking India into high-emission infrastructure for decades. Economic Risk of Inaction Persisting with carbon-intensive steel risks stranded assets, higher export barriers, and declining global competitiveness as markets increasingly price carbon intensity. Global Context: Why Green Steel Is Becoming Inevitable International Transition Trends China is expanding scrap-based secondary steel and hydrogen pilots, while the EU has pursued steel decarbonisation for nearly two decades. Carbon Border Adjustment Mechanism (CBAM) The EU’s CBAM will impose carbon-linked tariffs on steel imports, penalising high-emission producers and rewarding early movers in low-carbon steel production. India’s Industry Response: Early but Inadequate Corporate Initiatives Tata Steel has piloted hydrogen injection, renewable power sourcing, and CCUS; JSW, JSPL explore hydrogen; SAIL is modernising furnaces and testing low-carbon routes. Key Limitation Most initiatives remain at pilot scale, with insufficient transition to demonstration plants or full-scale near-zero-carbon production technologies. Policy Progress So Far Greening Steel Roadmap (2024) The roadmap outlines phased decarbonisation pathways, signalling long-term intent but lacking enforceable timelines or strong financial incentives to shift away from coal. Green Steel Taxonomy (Dec 2024) India became the first country globally to formalise a Green Steel Taxonomy, defining emission thresholds and enabling certification, disclosure, and potential market creation. Supporting Policy Signals National Green Hydrogen Mission, renewable capacity expansion, and Carbon Credit Trading Scheme (CCTS) targets for 253 steel units show directional momentum. Major Barriers to Green Steel in India Technology and Input Constraints High cost and limited availability of green hydrogen, insufficient renewable power dedicated to industry, and weak scrap availability constrain rapid scale-up of low-carbon steel. Market and Finance Constraints Green steel projects require 30–50% higher capital investment, face lack of long-tenure low-cost finance, and insufficient risk-sharing mechanisms for first movers. Institutional and Workforce Gaps Fragmented scrap markets, limited gas infrastructure, absence of CO₂ transport networks, and need for workforce upskilling slow transition across large and small producers. Role of Carbon Pricing and Market Creation Carbon Price as Transition Enabler European experience shows near-zero steel technologies became viable only after carbon prices reached $90–100 per tonne of CO₂, offering lessons for India’s sequencing. Demand-Side Pull for Green Steel Public procurement mandates, certification, and labelling can create assured domestic demand, reducing commercial risk and accelerating investment in clean steel capacity. Strategic Role of the State Government as Regulator and Enabler The state must set clear short-, medium-, and long-term emission targets, ensuring policy predictability for capital planning while avoiding ad-hoc regulatory shocks. Infrastructure Hubs and Shared Assets Developing green steel hubs with shared renewable power, hydrogen, gas pipelines, and CO₂ evacuation infrastructure can reduce costs and enable cluster-based decarbonisation. Equity and Just Transition Concerns Supporting MSME Steel Producers Smaller steel manufacturers lack capital buffers and technology access, requiring targeted fiscal support, concessional finance, and technology transfer to ensure equitable transition. Strategic Significance for India Climate and NDC Alignment Green steel is indispensable for achieving deeper NDC ambition, as industrial decarbonisation increasingly determines credibility of long-term net-zero pathways. Economic and Geopolitical Advantage Early leadership in green steel can secure export competitiveness, attract climate-aligned capital, and position India as a norm-setter in sustainable industrialisation. Way Forward: Policy-Industry Compact Key Action Points Mandate low-carbon pathways for all new steel capacity, operationalise carbon pricing, scale green hydrogen, formalise scrap markets, and align procurement with green standards. Core Takeaway Green steel is no longer optional; it is central to India’s revised NDC, long-term competitiveness, and global leadership, demanding decisive policy signals and rapid industrial scale-up. Signing of FTAs Is a Start: Measuring Success Through Global Market Gains Why is it in News? India has signed multiple Free Trade Agreements recently, reviving debate on whether FTAs translate into real global market share gains or remain symbolic without domestic competitiveness reforms. Relevance   GS 2 (International Relations): Trade diplomacy, FTAs with major partners, India’s negotiating credibility, and role in shaping global trade rules. GS 3 (Economy): Export competitiveness, manufacturing productivity, non-tariff barriers, logistics costs, and global value chain integration. Practice Question Analyse the role of non-tariff barriers in limiting India’s gains from FTAs. What domestic reforms are required to address this challenge?(250 Words) What Are Free Trade Agreements (FTAs)? Definition and Core Objective FTAs are bilateral or multilateral trade agreements aimed at reducing tariffs and trade barriers to enhance market access, export competitiveness, investment flows, and integration into global value chains. India’s Recent FTA Push India has concluded FTAs with UAE, Australia, EFTA, and is negotiating with EU and UK, reflecting a strategic shift from protectionism to selective trade liberalisation. India’s Trade Context: The Structural Challenge India’s Global Trade Position Despite being a major economy, India’s share in global merchandise exports remains modest at around 1.8%, indicating limited success in converting scale into global market dominance. Export Concentration and Vulnerability India’s exports remain concentrated in few sectors like petroleum products, gems, pharmaceuticals, and IT-enabled services, limiting diversification and resilience against global demand shocks. FTAs as Opportunity, Not Automatic Gains Market Access vs Market Capture FTAs only reduce tariffs; actual gains depend on firms’ ability to meet quality, scale, logistics, and compliance standards required to capture and sustain foreign market share. Evidence from Comparative Economies Countries like Vietnam and China have leveraged FTAs to expand exports significantly by aligning domestic reforms with trade agreements, unlike India’s relatively muted post-FTA export response. Non-Tariff Barriers: The Hidden Constraint Nature of Non-Tariff Measures (NTMs) Advanced economies increasingly rely on product standards, safety norms, environmental rules, and certification requirements, which often restrict exports more than tariffs themselves. India’s Compliance Gap Indian exporters frequently face rejection due to SPS, TBT, and quality non-compliance, raising costs and eroding competitiveness even under preferential tariff access. Manufacturing Competitiveness: The Missing Link Scale and Productivity Constraints India’s manufacturing sector is dominated by small firms lacking scale, technology, and productivity, limiting their ability to exploit FTA-enabled access to large, competitive global markets. Logistics and Trade Facilitation Issues High logistics costs, estimated at 13–14% of GDP, weak port efficiency, and slow customs clearance reduce India’s export competitiveness relative to East Asian manufacturing hubs. FTAs and Global Value Chains (GVCs) Importance of Intermediate Goods Trade Modern trade is driven by intermediate inputs; FTAs must enable seamless sourcing and integration into GVCs rather than focusing narrowly on final goods exports. India’s Limited GVC Integration India remains weakly integrated into global manufacturing value chains compared to ASEAN economies, reducing the export multipliers expected from FTAs. Domestic Policy Alignment: The Decisive Factor Need for Complementary Reforms FTAs succeed only when supported by domestic reforms in labour laws, land markets, infrastructure, credit access, and regulatory predictability that lower production and transaction costs. Role of Industrial Policy Production-linked incentives, skill development, and cluster-based manufacturing ecosystems are essential to convert preferential market access into sustained export expansion. Strategic Risks of Incomplete FTA Utilisation Risk of Import Surge Without Export Gains Without competitiveness reforms, FTAs can increase imports faster than exports, widening trade deficits and fuelling domestic opposition to trade liberalisation. Credibility and Negotiating Power Failure to deliver post-FTA export growth weakens India’s credibility in future trade negotiations and reduces its leverage in shaping global trade rules. Way Forward: Making FTAs Work for India Policy and Institutional Priorities India must shift focus from signing FTAs to export readiness through quality infrastructure, standards harmonisation, logistics modernisation, MSME upgrading, and targeted trade facilitation. Measuring Success Metrics Success of FTAs should be judged by sustained export growth, diversification, global market share gains, and deeper GVC integration, not merely by number of agreements signed. Takeaway FTAs are necessary but insufficient; without deep domestic competitiveness reforms, India risks preferential access without market power, turning trade agreements into missed economic opportunities.

Daily Current Affairs

Current Affairs 31 January 2026

Content Menstrual Health in Schools and the Right to Life UGC Equity Rules and Article 15 Stem Cell Therapy and Autism: Science, Ethics, and Regulation CEA Proposal to Ease Green Norms for Pumped Storage Projects (PSPs) Illegal Electric Fencing and Emerging Threat to Big Cats Recognising Village Commons as a Distinct Land-Use Category Menstrual Health in Schools and the Right to Life Why is it in news? The Supreme Court held that lack of menstrual hygiene management (MHM) in schools violates Article 21, directing States and Union Territories to ensure free access to sanitary napkins in all schools. Relevance GS 1 (Society): Gender inequality, stigma around menstruation, adolescent health, education access for girls. GS 2 (Polity & Governance): Article 21 (Right to Life with dignity), Article 14–15 (equality), positive obligations of the State, judicial activism. GS 2 (Social Justice): Child rights, women’s rights, Centre–State responsibility in health and education. Background and Context Menstrual health as a public policy issue Menstrual hygiene in India has historically been treated as a welfare concern rather than a rights-based issue, resulting in uneven access, stigma, and exclusion in educational institutions. Judicial intervention The Supreme Court adjudicated that inadequate MHM infrastructure in schools leads to humiliation, exclusion, and denial of dignity, directly infringing the constitutional right to life. Constitutional and Legal Dimension Article 21 and dignity The Court reaffirmed that the right to life under Article 21 includes dignity, bodily autonomy, privacy, and conditions enabling full participation in education without discrimination. Positive obligations of the State The judgment expands Article 21 to impose a positive duty on governments to ensure enabling conditions, not merely prevent direct violations of fundamental rights. Gender equality linkage Inadequate MHM disproportionately affects girls, reinforcing indirect discrimination and violating the constitutional guarantee of equality and non-discrimination under Articles 14 and 15. Education and Social Dimension Impact on school participation Absence of sanitary products, privacy, and disposal facilities leads to absenteeism, dropouts, and learning gaps among adolescent girls, especially in rural and low-income settings. Stigma and psychosocial harm Menstruation-related stigma in schools results in shame, anxiety, and loss of self-esteem, affecting mental health and long-term educational aspirations of girl students. Intersection with poverty Girls from economically weaker households face compounded disadvantages due to inability to afford sanitary products, making schools critical access points for menstrual health support. Public Health Dimension Health consequences of poor MHM Lack of safe menstrual hygiene increases risk of reproductive tract infections, urinary infections, and long-term gynaecological health complications. Preventive healthcare approach School-based MHM interventions act as preventive public health measures, reducing disease burden and promoting adolescent health awareness at an early, formative stage. Governance and Administrative Dimension Fragmented implementation Despite schemes like Menstrual Hygiene Scheme and Swachh Bharat initiatives, MHM implementation remains inconsistent due to weak monitoring and inter-departmental coordination. Infrastructure gaps Many schools lack functional toilets, water supply, disposal mechanisms, and vending facilities, limiting the effectiveness of sanitary napkin distribution alone. Centre–State responsibility Education and health being concurrent/state subjects necessitate coordinated Centre–State action, with judicial directions reinforcing accountability at multiple governance levels. Ethical and Human Rights Perspective Menstrual health as human dignity Denial of menstrual hygiene facilities amounts to institutionalised indignity, violating ethical principles of justice, equality, and respect for bodily integrity. Child rights lens MHM is integral to children’s rights to health, education, and development, aligning with India’s obligations under the UN Convention on the Rights of the Child. Global and SDG Linkages International commitments Ensuring menstrual hygiene aligns with SDG 3 (Health), SDG 4 (Education), SDG 5 (Gender Equality), and SDG 6 (Sanitation). Comparative practices Several countries integrate MHM into school health programmes, recognising it as essential infrastructure rather than discretionary welfare support. Challenges and Gaps Beyond product-centric approach Focus on sanitary napkins alone ignores needs like awareness, waste management, eco-friendly alternatives, and culturally sensitive education. Urban–rural divide Rural schools face greater deficits in infrastructure, awareness, and supply chains, risking uneven compliance with judicial directions. Sustainability concerns Disposal of single-use sanitary products raises environmental concerns, necessitating integration of biodegradable and reusable menstrual products. Way Forward Rights-based school MHM framework Integrate menstrual health explicitly into the Right to Education ecosystem, treating it as core educational infrastructure rather than auxiliary support. Holistic MHM strategy Combine free product access with functional toilets, water supply, disposal systems, health education, and teacher sensitisation programmes. Institutional accountability Establish monitoring indicators for MHM compliance within school accreditation and education department audits. Behavioural change and awareness Normalize menstruation through curriculum integration and community engagement to dismantle stigma and ensure sustained social acceptance. Conclusion   By recognising menstrual health as intrinsic to Article 21, the Supreme Court has shifted the discourse from welfare to rights, making dignified education for girls a constitutional mandate rather than a policy choice. Article 21: Expanded Spectrum of Rights (Judicial Interpretation) Right to live with human dignity – Life means more than mere animal existence; includes dignity, self-worth, and humane conditions of living. Right to livelihood – Deprivation of livelihood amounts to deprivation of life (Olga Tellis). Right to privacy – Covers bodily autonomy, decisional privacy, informational privacy (Puttaswamy). Right to health and medical care – State has a positive obligation to ensure access to healthcare. Right to emergency medical treatment – No denial of life-saving care due to procedure or cost. Right to clean drinking water – Integral to survival and public health. Right to clean and healthy environment – Includes pollution-free air, water, and ecological balance. Right to shelter – Includes adequate housing, sanitation, and basic civic amenities. Right to education (pre-21A) – Recognised as part of Article 21 before constitutional amendment. Right to speedy trial – Delay in justice violates personal liberty. Right to legal aid – Essential component of fair procedure and access to justice. Right against custodial torture and inhuman treatment – Absolute protection of bodily integrity. Right to reputation – An element of dignity and personal identity. Right to reproductive choice – Includes bodily autonomy and decisional freedom of women. Right to die with dignity – Passive euthanasia permitted under safeguards (Common Cause). UGC Equity Rules and Article 15 Why is it in news? The Supreme Court has stayed the UGC (Promotion of Equity in Higher Education Institutions) Regulations, 2026, amid challenges alleging “reverse discrimination” and questioning their constitutional basis. Relevance GS 2 (Polity): Article 15(1), 15(2), 15(4), 15(5), substantive equality, reasonable classification, constitutional morality. GS 2 (Governance): Regulation of higher education, institutional accountability, role of UGC, preventive anti-discrimination frameworks. GS 1 (Society): Caste system, social exclusion, structural discrimination in elite institutions. Background and Context Trigger for the 2026 Regulations The Regulations emerged from petitions by families of Rohith Vemula and Payal Tadvi, highlighting systemic caste discrimination and institutional failure within higher education campuses. Core constitutional question Whether targeted anti-discrimination safeguards for SC/ST/OBC students violate equality, or instead flow from Article 15’s mandate to remedy historical injustice. Article 15: Text, Purpose, and Constitutional Philosophy Article 15(1): Formal non-discrimination Article 15(1) prohibits State discrimination on grounds including caste, but by itself addresses only formal equality, not entrenched structural disadvantage. Article 15(2): Access to public spaces and institutions Article 15(2) was specifically designed to counter caste-based exclusion from public institutions, reflecting the Constitution’s awareness of socially embedded discrimination. Article 15(4) & 15(5): Enabling substantive equality These clauses constitutionally authorise special provisions for socially and educationally backward classes, recognising that identical treatment perpetuates inequality. Substantive Equality Doctrine: Judicial Interpretation Beyond symmetry in treatment The Supreme Court has consistently held that equality under Articles 14–15 is substantive, requiring differential treatment to correct unequal starting positions. Sukanya Shantha v. Union of India (2024) The Court affirmed that law must actively dismantle historical injustice, especially where caste operates as a pervasive social structure influencing institutions. Relevance to higher education Universities are not socially neutral spaces; caste hierarchies reproduce themselves through evaluation, discipline, mentoring, and informal networks, justifying targeted regulation. UGC Equity Regulations, 2026: Article 15 in Action Objective of the Regulations To promote “full equity and inclusion” in higher education by addressing caste-based discrimination that disproportionately affects historically marginalised groups. Rational nexus with Article 15 The Regulations operationalise Article 15 by recognising that caste discrimination is structurally asymmetric, not evenly distributed across social groups. Why focus on SC/ST/OBC students ? Constitutional history and social reality show that caste oppression has been systemic and unidirectional for centuries, warranting corrective institutional measures. The ‘Reverse Discrimination’ Argument: Constitutional Fallacy Misreading equality Claims of reverse discrimination assume equality means identical protection, ignoring that formal neutrality entrenches substantive inequality. No constitutional bar on asymmetry Article 15 does not mandate equal vulnerability; it mandates equal dignity, which may require unequal safeguards to reach comparable outcomes. General category protections already exist General laws on ragging, harassment, and disciplinary misconduct apply universally, while caste-specific protections address structural exclusion, not isolated misconduct. Reasonableness Test and Regulatory Validity Intelligible differentia Targeting SC/ST/OBC discrimination rests on clear historical and sociological evidence of systemic vulnerability, satisfying Article 14’s classification test. Rational connection to objective The differential treatment directly advances the goal of equity and inclusion, aligning with constitutional morality rather than arbitrary classification. Governance and Institutional Accountability Shift from episodic justice to preventive regulation The Regulations move from post-facto redress to institutional prevention, embedding constitutional values into university governance frameworks. Faculty and administration accountability By focusing on institutional responsibility, the Regulations recognise that caste discrimination often flows from power asymmetries, not peer-to-peer interactions alone. Ethical and Social Dimension Caste as a lived reality Treating caste discrimination as bidirectional ignores its embeddedness in social capital, authority, and evaluation systems, especially within elite educational spaces. Constitutional morality The Regulations reflect Ambedkar’s vision that equality requires state-led correction of inherited disadvantage, not passive neutrality. Implications of Diluting Article 15 Logic Risk of reverting to formal equality Striking down or weakening the Regulations risks reducing Article 15 to a procedural guarantee, hollowing out its transformative intent. Chilling effect on marginalised students Lack of explicit protections may deepen alienation, silence complaints, and reproduce exclusion, undermining access, retention, and mental health outcomes. Way Forward Judicial calibration, not dilution The Court may refine definitions or procedural safeguards, but must preserve the substantive equality core rooted in Article 15. Data-driven institutional mechanisms Universities should be mandated to maintain transparent data, grievance redressal systems, and sensitisation programmes aligned with constitutional values. University Grants Commission (UGC): Value Addition Notes 1. Constitutional & Legal Basis UGC derives authority from Entry 66 of Union List (coordination and determination of standards in higher education). Established under the UGC Act, 1956, giving it statutory powers to regulate universities. 2. Nature of the Institution UGC is a statutory regulatory body, not a constitutional body. Functions under the Ministry of Education (Department of Higher Education). 3. Core Objectives Maintain uniform standards in higher education. Promote access, equity, and excellence in universities. Ensure academic autonomy with accountability. 4. Regulatory Powers Recognition and de-recognition of universities. Prescription of minimum standards for faculty qualifications, infrastructure, and courses. Regulation of degree nomenclature and awarding powers. 5. Financial Role Disburses grants to Central Universities and eligible institutions. Uses funding as a regulatory lever to enforce compliance with standards. Stem Cell Therapy and Autism: Science, Ethics, and Regulation Why is it in news? The Supreme Court ruled that stem cell therapy cannot be offered as a clinical service for Autism Spectrum Disorder (ASD) due to absence of proven safety, efficacy, and regulatory approval. Relevance GS 3 (Science & Technology): Stem cell technology, limits of biomedical innovation, distinction between research and clinical application. GS 2 (Governance): Regulation of medical practice, Clinical Trials Rules 2019, role of central regulatory authorities. Background and Context Autism Spectrum Disorder (ASD) ASD is a neurodevelopmental condition marked by social communication difficulties, repetitive behaviours, and sensory sensitivities, requiring behavioural, educational, and supportive interventions rather than curative biomedical treatment. Rise of unproven therapies In absence of a definitive cure, families often turn to experimental or alternative therapies, creating space for unregulated clinics to promote stem cell “treatments” without scientific backing. Stem Cell Therapy: Scientific Basics What is stem cell therapy? Stem cell therapy involves using undifferentiated cells with regenerative potential to repair or replace damaged tissues, currently approved only for limited, evidence-backed indications like certain blood disorders. Status in neurological conditions For complex neurodevelopmental disorders like autism, causal pathways are not fully understood, making biological interventions speculative and scientifically unvalidated. Supreme Court’s Key Findings Lack of scientific evidence The Court noted absence of credible, peer-reviewed evidence establishing safety or therapeutic benefit of stem cell therapy in autism, disqualifying it from routine clinical use. Distinction between research and treatment Experimental interventions may occur only within regulated clinical trials, not as commercial therapies offered to patients under the guise of treatment. Informed consent is not a substitute for evidence Consent obtained without reliable information on risks, benefits, and efficacy is not “informed consent”, especially when patients are vulnerable or desperate. Regulatory and Legal Framework Clinical Trials Rules, 2019 Indian law prohibits offering unapproved therapies outside approved clinical trials, mandating ethics committee clearance, trial registration, and regulatory oversight. Role of central regulatory authority The Court directed the Union government to designate a competent authority to monitor, regulate, and act against unauthorised stem cell interventions nationwide. Ethical Dimensions Exploitation of vulnerability Parents of children with autism face emotional distress, making them susceptible to false promises of “miracle cures”, raising serious ethical concerns of exploitation. Medical ethics principles Promotion of unproven therapies violates non-maleficence (do no harm), beneficence, and autonomy, as decisions are based on misinformation rather than evidence. Governance and Public Health Concerns Patient safety risks Unregulated stem cell interventions carry risks of infection, immune reactions, tumour formation, and irreversible harm, with no established benefit to justify exposure. Regulatory enforcement gap The judgment highlights weak enforcement against medical quackery, allowing illegal clinics to flourish despite existing biomedical regulations. Science Policy Perspective Evidence-based medicine The ruling reinforces that clinical services must be grounded in reproducible scientific evidence, not anecdotal success stories or commercial incentives. Protecting legitimate research By separating research from treatment, the Court safeguards ethical biomedical innovation, ensuring that experimental therapies progress through proper scientific validation. Implications for Autism Care Focus on proven interventions Autism management must prioritise early diagnosis, behavioural therapy, speech and occupational therapy, inclusive education, and family support, rather than biomedical shortcuts. Preventing medical misinformation Judicial intervention helps curb pseudoscientific narratives, promoting rational health-seeking behaviour and trust in public health systems. Way Forward Strengthening regulation Establish a national oversight mechanism for stem cell research and therapies, with strict penalties for violations and real-time monitoring of clinics. Public awareness and counselling Government and medical bodies must educate families about evidence-based autism care, risks of unproven therapies, and ethical clinical research pathways. Core Takeaway The Supreme Court’s ruling affirms that medical innovation cannot bypass scientific evidence and ethical safeguards, protecting vulnerable patients from exploitation while upholding the primacy of evidence-based healthcare. CEA Proposal to Ease Green Norms for Pumped Storage Projects (PSPs) Why is it in News? The Central Electricity Authority (CEA) has proposed easing environmental and forest clearance norms for pumped-storage projects to accelerate capacity addition amid renewable energy expansion and storage shortages. Relevance GS 3 (Environment & Energy): Renewable energy transition, energy storage, climate mitigation vs environmental protection. GS 3 (Economy): Infrastructure development, power sector reforms, long-duration storage economics. Background and Context India’s Renewable Energy Transition India targets 500 GW non-fossil capacity by 2030, requiring large-scale energy storage to manage intermittency from solar and wind, which together form the backbone of future power supply. Role of Energy Storage Grid-scale storage is essential for balancing supply–demand, frequency regulation, and peak-load management, especially as renewable penetration increases beyond conventional grid flexibility limits. Pumped Storage Projects (PSPs): Basics What are PSPs? PSPs store electricity by pumping water to an upper reservoir during surplus power periods and generating electricity by releasing it downhill during peak demand hours. Why PSPs matter ? PSPs provide long-duration energy storage (6–10 hours), grid inertia, and rapid ramping, unlike batteries which currently face cost and lifecycle constraints at scale. Current Status of PSPs in India Installed and Planned Capacity India has about 4.8 GW operational PSP capacity, with over 100 GW identified potential, though actual development remains limited due to regulatory and environmental hurdles. CEA’s Storage Vision CEA estimates India will require 336–340 GW of storage by 2047, with pumped storage contributing a dominant share due to scalability and cost efficiency. Key Problem: Environmental and Forest Clearances Clearance-related delays According to CEA, environmental, forest, and wildlife clearances are the primary reasons for slow PSP development, particularly in ecologically sensitive hill regions. Protected and Eco-Sensitive Zones Many viable PSP sites fall within Eco-Sensitive Zones (ESZs) around protected forests, triggering multi-layered approvals and litigation, delaying projects by several years. CEA’s Proposed Easing of Green Norms Differentiation between PSPs and conventional hydro CEA proposes treating off-river and closed-loop PSPs separately, recognising their significantly lower ecological footprint compared to conventional river-diversion hydropower projects. Use of degraded forest land The proposal suggests permitting PSPs on degraded forest land, with compensatory afforestation and biodiversity offsets replacing blanket restrictions. Streamlining approvals PSPs may be granted simplified environmental clearance pathways, excluding them from repeated river-basin and cumulative impact assessments where ecological disruption is minimal. Environmental Impact Assessment: Key Arguments Lower ecological impact Off-river PSPs do not require continuous river flow diversion, resulting in minimal downstream ecological disruption, sediment alteration, or aquatic biodiversity loss. Limited displacement PSPs typically involve smaller submergence areas, reducing large-scale displacement and rehabilitation issues common in conventional hydroelectric projects. Opposition and Environmental Concerns Ecological sensitivity of hill regions Environmental groups argue PSPs in the Western Ghats, Eastern Ghats, and Himalayas threaten fragile ecosystems, landslide-prone slopes, and forest corridors. Cumulative impact risks Critics warn that multiple PSPs in a single region may cause hydrological stress, deforestation, and wildlife habitat fragmentation, undermining conservation goals. Governance and Regulatory Dimensions Balancing climate and conservation goals The debate reflects a policy tension between rapid decarbonisation through renewable integration and constitutional environmental protection under Articles 48A and 51A(g). Institutional coordination challenge PSP approvals require alignment among MoEFCC, State governments, power ministries, and wildlife authorities, often leading to procedural bottlenecks and inconsistent decisions. Economic and Energy Security Implications Grid stability and peak management Accelerated PSP deployment can reduce reliance on coal-based peaking power, cutting emissions and fuel import dependence while stabilising electricity tariffs. Cost competitiveness PSPs offer levelised storage costs lower than lithium-ion batteries for long-duration storage, making them economically attractive for India’s scale requirements. Global Comparisons and Lessons International experience Countries like China, the US, and Japan treat PSPs as strategic grid infrastructure, with streamlined environmental approvals for closed-loop systems. Alignment with global trends India’s proposal aligns with global recognition of PSPs as enablers of renewable energy transition, not traditional large-dam hydro projects. Way Forward: Balanced Policy Approach Environmental safeguards with flexibility Adopt site-specific, science-based clearances, prioritising off-river PSPs, cumulative impact studies, and strict post-construction ecological monitoring. Institutional reforms Create a dedicated PSP clearance framework, separate from conventional hydropower, with time-bound approvals and transparent compensation mechanisms. Core Takeaway Easing green norms for pumped-storage projects reflects India’s attempt to reconcile energy transition imperatives with environmental protection, where nuanced regulation, not blanket restrictions, is key to sustainable decarbonisation. Illegal Electric Fencing and Emerging Threat to Big Cats Why is it in News? In January 2026, a 2.5-year-old male tiger was electrocuted by illegal electric fencing near Valmiki Tiger Reserve, marking the first such recorded incident in Bihar’s only tiger reserve Relevance GS 3 (Environment): Wildlife conservation, human–wildlife conflict, landscape-level conservation beyond protected areas. GS 3 (Biodiversity): Tiger corridors, buffer zones, conservation challenges in human-dominated landscapes. Background and Context Valmiki Tiger Reserve (VTR): Strategic Importance VTR, spread over 899 sq km in West Champaran, Bihar, is the state’s only tiger reserve, bordering Nepal and Uttar Pradesh, forming a critical transboundary tiger landscape. Rising Tiger Population Tiger numbers in VTR increased from 28 (2014) to 54 (2024), a 75% rise, earning NTCA’s “Very Good” category, but also increasing human–wildlife interface pressures. Use of Illegal Power Supply Farmers used unauthorised grid electricity, meant for agriculture and domestic use, to energise fences, making them lethal instead of deterrent. Illegal Electric Fencing: A Growing Conservation Threat Why Farmers Use Electric Fencing Electric fencing is used to deter nilgai, wild boar, and other herbivores damaging rabi crops near forest boundaries, reflecting rising crop-raiding conflicts. Why It Is Dangerous ? Unlike solar-powered low-voltage fences, illegal fencing often carries high-voltage alternating current, causing instant death to large mammals, including tigers and elephants. Tiger Ecology and Human-Dominated Landscapes Movement Beyond Protected Areas Tigers routinely move into buffer zones, corridors, and agricultural fields, especially young dispersing males, increasing exposure to anthropogenic hazards like fences and roads. Landscape-Level Conservation Reality Modern conservation recognises that over 30–40% tiger movement occurs outside core forest areas, making coexistence measures critical beyond reserve boundaries. Recognising Village Commons as a Distinct Land-Use Category Why is it in News? Economic Survey 2025–26 proposes recognising “village commons” as a distinct land-use category, enabling systematic mapping, monitoring, and policy intervention to revive degraded common property resources. Relevance GS 1 (Society): Rural livelihoods, common property resources, social safety nets for landless and marginal groups. GS 2 (Polity & Governance): 73rd Constitutional Amendment, Gram Sabha powers, decentralised resource governance. Background and Conceptual Framework What are Village Commons? Village commons are community-managed Common Property Resources (CPRs) such as grazing lands, ponds, tanks, forests, and wastelands used collectively for fodder, fuel, water, livelihoods, and ecosystem services. Scale and Significance Commons constitute ~15% of India’s geographical area (~6.6 crore hectares), supporting ~35 crore rural people, especially landless households, pastoralists, and marginal farmers. Economic, Social, and Ecological Importance Livelihood and Rural Economy Village commons provide fodder security, fuelwood, water access, minor forest produce, and seasonal employment, acting as a livelihood buffer for vulnerable rural populations. Economic Valuation As per Economic Survey estimates, commons generate an economic dividend of ~USD 9.05 crore annually, though their indirect ecological value remains undercounted in GDP frameworks. Biodiversity and Ecosystem Services Commons function as biodiversity-rich ecosystems, aiding groundwater recharge, soil conservation, carbon sequestration, and micro-climate regulation. Governance and Institutional Context Current Land-Use Classification Gaps Village commons are often misclassified as wastelands or revenue lands, making them vulnerable to encroachment, diversion, and neglect in planning processes. Decentralised Governance Link Constitutionally, management of commons aligns with 73rd Constitutional Amendment, Gram Sabhas, and Panchayats, but lack of clear legal status weakens local authority. Evidence of Decline and Degradation Land Degradation Trends ISRO’s Desertification and Land Degradation Atlas shows degraded land increased from 94.53 million ha (2003–05) to 97.85 million ha (2018–19), adding ~0.22 million ha annually. Drivers of Degradation Encroachment, overgrazing, unregulated pasture use, declining community institutions, groundwater over-extraction, and absence of sewage treatment in villages accelerate commons’ decline. Why Recognition as a Distinct Category Matters ? Policy and Planning Advantages Formal land-use recognition enables accurate estimation, geo-spatial mapping, targeted funding, and outcome-based monitoring, correcting policy blindness towards commons. Preventing Conversion and Encroachment Legal recognition raises transaction costs for diversion, discourages ad-hoc conversion, and strengthens community claims over shared resources. Best Practices from States Karnataka and Rajasthan Models Multi-tiered institutional frameworks integrating revenue records, GIS mapping, and Panchayat databases have improved identification, protection, and management of commons. Lesson for National Scaling State experiences show that institutional clarity + digital mapping + community involvement improves commons governance. Linkages with National Schemes Ongoing Government Initiatives SVAMITVA Yojana: Drone-based mapping of village lands and commons. Mission Amrit Sarovar: Rejuvenation of village water bodies. PMKSY (Har Khet Ko Pani) & Jal Shakti Abhiyan: Catch The Rain: Restoration of traditional water systems. Need for Convergence Recognised land-use status allows convergence of climate, water, rural livelihood, and land restoration schemes around village commons. Sustainability and SDG Alignment SDG Contributions Commons directly contribute to: SDG 1 (No Poverty) SDG 8 (Decent Work & Livelihoods) SDG 15 (Life on Land) Climate Resilience Revived commons enhance adaptation capacity against droughts, floods, and climate-induced livelihood shocks. Challenges and Risks Institutional Capacity Deficit Panchayats often lack technical, financial, and administrative capacity to manage commons sustainably. Elite Capture and Exclusion Without safeguards, commons risk elite capture, marginalising landless households, women, and pastoral communities. Way Forward: Policy and Governance Reforms Legal and Institutional Measures Formally notify village commons as a land-use category with sub-classifications (pasture, water body, forest commons). Strengthen Gram Sabha authority in management, access rules, and dispute resolution. Technological and Financial Support Use GIS, satellite imagery, and drone surveys for real-time monitoring. Allocate dedicated restoration funds linked to performance outcomes. Community-Centric Approach Invest in capacity-building of local bodies, revive traditional management norms, and integrate women’s SHGs and user groups. Core Takeaway Recognising village commons as a distinct land-use category marks a shift from land as commodity to land as community capital, essential for rural livelihoods, ecological security, and sustainable development in India.

Daily PIB Summaries

PIB Summaries 30 January 2026

Content India’s space economy at $8.4 billion, nearly 400 start-ups active after sector opened to private players Government Notifies Coking Coal as Critical & Strategic Mineral under MMDR Act, 1957 India’s space economy at $8.4 billion, nearly 400 start-ups active after sector opened to private players Overview India’s space economy is valued at USD 8.4 billion, with rapid post-2019 expansion driven by policy liberalisation, private participation, and institutional restructuring of the traditionally government-led space sector. Relevance GS 3 (Science & Tech/Economy/Security): Commercialisation of space technology, start-up ecosystem growth, exports, and strategic autonomy. Why in news ? In January 2026, the government informed Parliament that India’s space economy reached USD 8.4 billion, with nearly 400 active start-ups, reflecting outcomes of post-2019 private-sector reforms. Evolution of India’s space sector Pre-2019 scenario Despite strong scientific capabilities within ISRO, the space sector remained largely government-driven, with minimal private participation due to regulatory uncertainty, limited access to infrastructure, and absence of a market-oriented ecosystem. Post-2019 reforms Policy decisions after 2019 opened the space sector to private entities, enabling commercial participation across launches, satellites, downstream applications, and space-grade manufacturing. Institutional framework Role of IN-SPACe The Indian National Space Promotion and Authorisation Centre functions as a single-window regulator and facilitator, authorising private space activities and enabling access to ISRO facilities and technical expertise. As of now, around 1,050 private companies have registered capabilities on the IN-SPACe Digital Platform, indicating broad industrial interest across the space value chain. Indian Space Policy, 2023 The policy permits private entities to undertake end-to-end space activities, including launches, satellite manufacturing and operations, data acquisition, dissemination services, and ground-station infrastructure. Start-up ecosystem and private participation The number of space start-ups has increased from single-digit figures to 399, operating in launch vehicles, satellite platforms, propulsion systems, electronics, and downstream space applications. Targeted support through IN-SPACe seed funding and pre-incubation programmes, with ₹2.36 crore disbursed so far, has lowered entry barriers for early-stage space entrepreneurs. Economic size and growth projections India’s space economy, once marginal, is now valued at USD 8.4 billion and is projected to grow four to five times over the next eight to ten years. IN-SPACe’s Decadal Vision targets expansion to USD 44 billion by 2033, including USD 11 billion in exports, positioning space as a key contributor to economic growth. Value-chain diversification Upstream and manufacturing Private firms are increasingly involved in launch systems, satellite manufacturing, propulsion technologies, and space-grade electronics, reducing sole dependence on public sector execution. Technology transfer agreements, including for the Small Satellite Launch Vehicle, signal gradual commercialisation of ISRO-developed platforms. Downstream and services Revenue generation is expected from Earth observation, satellite communication, navigation services, ground operations, and emerging in-orbit economy activities. Global engagement and revenues Of the 434 foreign satellites launched by India, 399 were launched after 2014, highlighting India’s growing competitiveness in the global launch services market. These launches have generated revenues of approximately €323 million and USD 233 million, strengthening India’s commercial space credentials. Governance and strategic vision Decadal Vision strategy IN-SPACe’s roadmap is anchored on three pillars: revenue generation, ecosystem development, and catalysing space activities through industrial and international collaboration. Demand creation, export promotion, and international outreach are central to scaling private services and integrating Indian firms into global space supply chains. Significance for India The expanding space economy supports high-technology manufacturing, skilled employment, innovation spillovers, and strategic autonomy in critical space capabilities. Space is transitioning from a scientific and strategic domain to a commercial growth engine, aligned with long-term development and global competitiveness goals. Value Addition 1.ISRO (Indian Space Research Organisation) Legal and constitutional status ISRO is not a statutory body; it is an executive organisation, created by a resolution of the Government of India, functioning under executive authority, not an Act of Parliament. It operates under the Department of Space (DoS), which was created in 1972 and is placed directly under the Prime Minister’s Office. Administrative control and hierarchy The Department of Space exercises administrative, financial, and policy control over ISRO, ensuring strategic oversight of space activities with national security and development priorities. The Prime Minister is the ex-officio head of the Department of Space, highlighting the strategic and sovereign importance of space activities. Functional positioning ISRO primarily functions as a technical and operational agency, responsible for mission design, satellite development, launch operations, and space applications. It does not have independent regulatory powers over private players, avoiding conflict-of-interest in the post-reform space governance architecture. 2.IN-SPACe (Indian National Space Promotion and Authorisation Centre) Legal nature and creation IN-SPACe is also not a statutory regulator; it is an executive body established through a government decision to implement space sector reforms. It functions under the Department of Space, but is institutionally distinct from ISRO in mandate and decision-making. Role in governance architecture IN-SPACe acts as an authorisation, promotion, and facilitation body, not a policy-making authority, ensuring separation between policy formulation and execution. It provides approvals to non-government entities for space activities, operating within the framework of the Indian Space Policy, 2023. Government Notifies Coking Coal as Critical & Strategic Mineral under MMDR Act, 1957 Coking coal (metallurgical coal) High carbon content and low ash; when heated without air, it forms coke, a strong, porous material essential for blast-furnace steelmaking. Acts as both fuel and reducing agent in iron ore smelting; provides structural support to the burden inside blast furnaces. Limited domestic availability and quality constraints; India meets nearly 95% of steel sector demand through imports. Relevance GS 1 (Geography): Resource geography influencing steel industry location and infrastructure development. GS 2 (Polity/Federalism): MMDR Act application under Union List with cooperative federalism in revenue sharing. GS 3 (Economy/Environment/Security): Industrial input security, import substitution, and supply-chain resilience. Why coking coal is in news ? The Union Government notified coking coal as a Critical and Strategic Mineral under the MMDR Act, 1957, through amendment of the First Schedule using powers under Section 11C. The notification is based on recommendations of the High-Level Committee on Implementation of Viksit Bharat Goals and policy inputs from NITI Aayog, highlighting coking coal’s strategic importance. Classification as a critical mineral enables regulatory relaxations, including faster approvals, exemption from public consultation, and improved ease of doing business. The reform directly supports the National Steel Policy, given the steel sector’s overwhelming reliance on imported coking coal despite domestic geological availability. Context Strategic importance of coking coal Coking coal is an indispensable input for blast furnace–based steelmaking, contributing nearly 40–45% of steel production cost, making its availability vital for infrastructure-led growth. India has 37.37 billion tonnes of coking coal resources, mainly in Jharkhand, with additional reserves in Madhya Pradesh, West Bengal, and Chhattisgarh. Import dependence and vulnerability Despite domestic resources, imports increased from 51.20 million tonnes in 2020–21 to 57.58 million tonnes in 2024–25, reflecting quality constraints and slow mine development. Nearly 95% of coking coal requirement of the steel sector is met through imports, causing large foreign exchange outgo and exposure to global price volatility. Legal and policy changes under MMDR Act The amendment redefines “Coal” in Part A as “Coal, including Coking Coal” and includes Coking Coal in Part D as a Critical and Strategic Mineral. Mining of critical minerals permits use of degraded forest land for compensatory afforestation and waives mandatory public consultation, improving project viability. Governance and federal aspects As per Section 11D(3) of the MMDR Act, royalty, auction premium, and statutory payments from mining leases will continue accruing to State Governments. The reform balances centralised auctioning for strategic minerals with cooperative federalism, ensuring fiscal interests of mineral-rich states remain protected. Expected outcomes The notification is expected to promote advanced exploration, beneficiation, and deep-seated mining, areas historically underdeveloped in India’s coal sector. It aims to strengthen supply-chain resilience, reduce geopolitical risks in steel inputs, generate employment, and enhance long-term industrial competitiveness. Strategically, the decision signals a shift from volume-centric coal policy to quality-based critical mineral governance, integrating mineral security with economic security. Coal Formation and Types Parameter Peat Lignite (Brown Coal) Bituminous (Soft Coal) Anthracite (Hard Coal) Coal Status Not considered true coal Low-grade coal Medium-grade coal Highest-grade coal Stage in Coal Formation Initial stage Early coal stage Advanced coal stage Final coal stage Carbon Content Very low Low High Very high Moisture Content Very high High Moderate Very low Heat (Calorific) Value Very low Low High Very high Sulphur Content Negligible Low Generally high Very low Formation Condition Partial decomposition of plant matter Increased heat and pressure Further increase in heat and pressure Maximum heat and pressure Typical Occurrence Swamps and bogs Shallow burial zones Deeply buried sedimentary basins Highly metamorphosed coal beds Uses Not used as fuel Limited power generation Major industrial and power fuel Premium fuel, metallurgy Availability Abundant locally Limited in many regions Widely available Scarce in most regions Value addition Data and Facts India targets 300 million tonnes of steel capacity by 2030, implying sharply rising coking coal demand unless domestic production improves. Global coking coal supply is highly concentrated, with Australia accounting for over 50% of India’s imports, increasing exposure to climate and geopolitical risks. Critical mineral classification elevates coking coal alongside lithium, cobalt, and rare earths, reflecting its transition from fuel to strategic industrial input. Other coal (non-coking / thermal coal) Higher ash and volatile matter; does not form coke when heated, making it unsuitable for blast-furnace steelmaking. Primarily used for power generation, cement, fertilisers, and industrial heating processes. India has abundant reserves of non-coking coal, supporting energy security and reducing import dependence in electricity generation. Classified as a conventional mineral; does not enjoy regulatory relaxations applicable to critical and strategic minerals. Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) Principal legislation governing exploration, mining, and regulation of minerals in India, excluding petroleum, natural gas, atomic minerals, and minor minerals. Enacted under Entry 54, Union List, enabling Parliament to regulate mines and mineral development in the national interest. Empowers State Governments to grant mining leases, prospecting licences, and composite licences for most minerals. Allows Central Government to frame rules and issue directions to ensure scientific mining and conservation of mineral resources. First Schedule classifies minerals into different parts, including critical and strategic minerals for national importance. Section 11C empowers the Centre to notify minerals as Critical and Strategic, enabling faster approvals and special regulatory treatment. Section 11D(3) ensures royalty, auction premium, and statutory payments accrue to State Governments, even when Centre conducts auctions. Provides legal framework for auction-based allocation of mineral resources, promoting transparency and revenue maximisation. Recent amendments aim to improve ease of doing business, attract private investment, and strengthen mineral security.