Current Affairs 02 December 2025
Content Is the End of Progress Against Extreme Poverty Approaching? Pan Masala Cess and Higher Duties on Tobacco Products Why India Needs Bioremediation Can India Become Self-Reliant in Rare Earth Elements (REEs)? Sanchar Saathi App Mandate by DoT Rising GPS Spoofing Incidents Near Indian Airports Rare Earth Permanent Magnets (REPMs). Why Pollution Affects North Indian Cities More Than South & West Is it the end of progress against extreme poverty? What Is Extreme Poverty? Defined by the World Bank as living on less than $2.15/day (2017 PPP). Core indicators: lack of food security, no access to sanitation, healthcare, electricity, education. Used globally to measure SDG-1 implementation. Relevance GS 1 – Society Global poverty trends, demographic transitions. Regional disparities (Asia vs Africa). Social indicators: education, health, inequality. GS 2 – International Relations / Social Justice SDG-1, SDG-10 performance. Role of institutions (World Bank, IMF, UN). Governance gaps in fragile states. GS 3 – Economy Growth–poverty elasticity. Structural transformation, employment, productivity. Climate vulnerability and conflict economics. Global poverty projections and economic stagnation in Africa. What Has Happened Since 1990? (Global Background) 1990: 2.3 billion people in extreme poverty. 2024: Decline by 1.5 billion, one of the largest improvements in human history. Drivers: Rapid Asian growth (China, Indonesia, India, Bangladesh). Structural transformation (manufacturing, urbanisation). Trade integration. Why Rapid Decline Is Slowing Now In the 1990s, most poor people lived in fast-growing Asian economies. Today, most extremely poor live in stagnating African economies (Madagascar, DR Congo, Malawi, Mozambique, Burundi, CAR). GDP per capita in these countries has not grown for decades. Projections (World Bank + IMF) A. Up to 2030 Extreme poor decline from 831 million (2025) to 793 million (2030). Decline modest; nowhere close to earlier pace. B. After 2030 Reversal begins: number starts rising due to: Stagnant African economies High fertility Climate vulnerability Weak state capacity C. Geographic shift 1990: Most poor in Asia. 2024–2040: Majority in Sub-Saharan Africa. Why Progress Is Stalling ? Economic stagnation in core African states (per capita income same as 1950 in Madagascar). Mean incomes below poverty line → redistribution alone cannot eliminate poverty. Population growth outpacing economic growth. Climate shocks and conflicts. Weak human capital: low productivity, poor education, poor health. How Latin American Countries Fit Into This Picture (Panama, Bolivia, Mexico, Brazil) A. Mexico Middle-income country with moderate poverty reduction. Extreme poverty dropped significantly 1990–2015; stagnated thereafter. Drivers: Manufacturing-based growth (NAFTA) Social transfer programmes (Oportunidades) Challenges: Regional disparity (South vs North) Crime, informality Slow post-2015 GDP growth B. Brazil Major decline in extreme poverty 2003–2014 (Bolsa Família, commodity boom). Recent stagnation due to: Political instability Low productivity Commodity cycle downturn Still far ahead of Africa; baseline poverty much lower. C. Panama One of Latin America’s fastest-growing economies; extreme poverty declined sharply (Canal services, logistics). Challenges: High inequality Indigenous-region poverty pockets remain. D. Bolivia Poverty reduction since 2005 due to: Hydrocarbon boom Cash transfer schemes But growth slowdown post-2014 → stagnation. Still better trajectory than African stagnators but not Asian-style high growth. Overall Latin America Trend No stagnation as deep as Africa, but insufficient growth to replicate Asian-style poverty elimination. Inequality a persistent drag across region. Chart Logic Explained (Charts 1A–1D & Chart 2) Charts 1A & 1B (High-growth Asian countries) China, Indonesia, India, Bangladesh → large initial poverty shares (>60%) Rapid GDP/capita rise → large decline (<10%). Charts 1C (Latin America – e.g., Mexico, Brazil, Bolivia, Panama) Lower initial extreme poverty. Reduction is slower because: Growth moderate, not explosive. Inequality high. Poverty is more structural, less mass-extreme. Charts 1D (African stagnators) DR Congo, Malawi, Burundi, CAR, Mozambique GDP/capita stagnant for decades. Extreme poverty remains >50%. Chart 2 (Projections to 2040) Shows a break from past trend: Decline until 2030 Rise afterward Latin America stays low-extreme-poverty but not driving global reduction. Asia essentially exits extreme poverty. Africa drives global numbers upward. Key Insight: Redistribution vs Growth Countries like Madagascar, DR Congo: Mean income < poverty line Even perfect redistribution keeps everyone poor Only sustained GDP growth can eliminate extreme poverty. Why Future Looks Different From Past Earlier gains came from countries that were poor but grew rapidly. Now most extremely poor live in countries with: Very low state capacity Fragile institutions Climate vulnerability Conflict Weak human capital Without structural transformation, the poverty trap deepens. Implications for SDGs SDG-1 (End Poverty by 2030) will not be met. SDG-10 (Inequality) becoming more central. Africa becomes global development priority. Policy Lessons Growth-first strategy essential in low-income countries. Need strong investment in: Education Health Agricultural productivity Climate resilience Governance reforms Redistribution works only after basic growth begins. PAN MASALA CESS & HIGHER DUTIES ON TOBACCO PRODUCTS Why Is This in News? The Union Government introduced two new Bills in Parliament: Health Security Cess Bill, 2025 Central Excise (Amendment) Bill, 2025 Objective: Replace the soon-ending GST Compensation Cess on tobacco with new revenue streams and bring pan masala manufacture under tighter fiscal regulation. Context: GST compensation cess on tobacco to discontinue after repayment of COVID-era borrowings. Relevance GS 2 – Governance / Polity Fiscal federalism: Centre–State financial relations. Legislative process (Bills introduced in Parliament). Public health as a State subject; non-shareable cess debate. GS 3 – Economy / Public Health Pigouvian taxes. Sin goods taxation and behavioural economics. Revenue mobilisation post-GST cess sunset. Illicit trade, compliance, machine-based excise monitoring. Basics GST Compensation Cess (2017–present) Levied on sin goods: tobacco, aerated drinks, coal, pan masala, etc. Purpose: Compensate States for revenue loss due to GST rollout. Compensation tenure: 5 years (2017–2022), extended to repay loans taken during COVID years due to shortfall. Tobacco & pan masala: High-elasticity sin goods used for revenue + public health control. Key Features of the New Bills A. Health Security Cess Bill, 2025 Introduces a new cess on tobacco products. Purpose: Replace GST compensation cess as it sunsets. Generate earmarked funds for health and national security. Target of levy: Machines installed or processes undertaken in pan masala and similar harmful product manufacturing. B. Central Excise (Amendment) Bill, 2025 Enhances excise duty on tobacco products. Reconfigures the tax framework to ensure: Continuous revenue after GST compensation cess ends. Stabilisation of the tax base for sin goods. Rationale Behind the Move Fiscal Rationale GST compensation cess on tobacco is ending, but: COVID-era borrowings still being repaid. Tobacco is a high-yield, low-compliance-elasticity sector: Ensures steady revenue. Pan masala sector has high evasion risk: Machine-based cess improves traceability and compliance. Public Health Rationale Tobacco-related deaths in India: ~1.3 million annually. Pan masala very high in carcinogens (areca nut). Higher taxes = reduced affordability, especially among youth. Governance Rationale Machine-based cess on pan masala aligns with: FMCG excise surveillance model (packaging line tracking). Anti-evasion efforts used earlier (pre-GST) under the Pan Masala Packing Machines Rules. Economic & Policy Implications For Centre–State Fiscal Dynamics Signals the final drawdown of GST compensation. States lose a predictable revenue stream; Centre creates a new central cess (non-shareable with States). For Industry Higher duties raise production costs for: Cigarettes Chewing tobacco Pan masala Likely impacts: Increased MRP Reduced consumption Pushback from industry lobbies For Public Health WHO recommends a minimum 75% tax share in retail price of tobacco. India’s effective burden still < 60% for many tobacco forms. New cess + increased excise brings India closer to global health norms. For GST Architecture Marks a shift from compensation cess to purpose-specific cesses. Raises debate on: Fragmenting GST into multiple cesses. Compliance burden on industries. Fiscal federalism concerns. Political & Parliamentary Context Bills introduced amid Opposition sloganeering on unrelated political issues. Winter Session traditionally used for major tax reforms. Lok Sabha simultaneously passed the Manipur GST Amendment Bill, reflecting a focussed GST reform push. Challenges & Criticisms States may resent loss of compensation-related certainty. Health cess not shared with States despite health being a State subject. Risk of increasing illegal/unregulated tobacco trade. Pan masala manufacturers may shift to unregistered, small units to evade machine-based cess. Value Addition (Data + Concepts) India is second-largest tobacco consumer globally. Economic cost of tobacco use: 1% of GDP (ICMR estimate). Sin taxes follow Pigouvian taxation principles. Why does India need bioremediation? Why Is It in News? Rising concern over pollution load from human waste, untreated sewage, industrial effluents, oil spills, and heavy metals. Rivers such as Ganga and Yamuna continue to receive untreated discharges despite improvements. Government and scientific bodies pushing bioremediation as a scalable, low-cost, sustainable alternative to traditional clean-up technologies. India evaluating national standards, biosafety norms, and GM microbe regulation to support bioremediation expansion. Growing interest as part of Swachh Bharat, Namami Gange, Clean Technology Programme, and global green technology trends. Relevance GS 1 – Geography / Environment Soil degradation, river pollution, land contamination. Environmental hotspots (Ganga, Yamuna, mining belts). GS 2 – Governance Regulatory gaps: biosafety norms, GM microbe rules. Centre–State urban waste management responsibilities. What Is Bioremediation? Use of microorganisms (bacteria, fungi, algae), plants, or microbial enzymes to degrade, detoxify, or immobilise pollutants. Converts toxic substances (oil, pesticides, plastics, heavy metals) into harmless by-products like CO₂, water, organic acids. Works through microbial metabolism where pollutants become energy or nutrient sources. Types of Bioremediation In situ: Treatment at the contaminated site Oil-eating bacteria sprayed on ocean spills Bioventing, biosparging for soil Ex situ: Contaminated material removed and treated elsewhere Bioreactors, biopiles, land farming Modern versions: GM microbes designed to tackle plastics, hydrocarbons, persistent organic pollutants Nanobioremediation combining nanomaterials with microbes Why Does India Need Bioremediation? Severe pollution burden Ganga and Yamuna receive large volumes of untreated sewage Industrial hotspots contaminated with heavy metals, hydrocarbons, solvents Traditional methods costly Physico-chemical methods generate secondary waste, require high energy Bioremediation advantages Cheaper, scalable, energy-efficient Utilises India’s microbial biodiversity Ideal for diffuse, large-area contamination Environment–health concerns Oil leaks, pesticide residues, endocrine disruptors Contaminated soil reducing agricultural productivity Rural–urban waste surge Landfills (e.g., Mittanaganahalli, Bengaluru) facing persistent organic loads Where India Stands ? Research ecosystem increasing DBT’s Clean Technology Programme NEERI’s mandate for bioremediation solutions IITs developing novel materials (cotton nanocomposite for oil spills) Indigenous bacteria identified to break down pesticides, dyes, hydrocarbons Growing industry participation BCIL, Econirmal Biotech offering microbial formulations Gaps Fragmented standards Limited site-specific microbial data Pollutants often mixed and complex Regulatory ambiguity on GM organisms Limited trained personnel International Experience Japan Integrates plant-microbe systems into municipal waste treatment Bioremediation used to restore urban brownfields European Union Cross-country collaborations for oil spill clean-up Microbial mining waste restoration under Horizon programmes China Bioremediation embedded in soil pollution control laws Genetically improved bacteria used to restore industrial wastelands Global Trend Shift towards biotechnology-driven environmental restoration Increased use of GM microbes with strict biosafety layers Opportunities for India River restoration: Yamuna, Ganga, Damodar, Musi Land reclamation: mining-affected areas, landfill remediation Industrial clean-up: petrochemical zones, tanneries, textile clusters Job creation: biotechnology, environmental engineering, monitoring Integration with national missions: Swachh Bharat, Namami Gange, waste-to-wealth Key Risks GM organisms in open environments Potential for unintended ecological shifts Risk of horizontal gene transfer Inadequate testing/oversight New problems can emerge if microbes behave unpredictably Public distrust Misconceptions around GM microbes Regulatory gaps Need new biosafety guidelines Certification and monitoring systems insufficient What India Should Do Next ? Develop national standards Protocols for microbial applications Testing, certification, and monitoring frameworks Establish regional bioremediation hubs Universities–industry–local govt partnerships Region-specific microbial libraries Public engagement Awareness campaigns to build trust Community participation in river and soil clean-up Expand R&D Indigenous GM strains adapted to Indian conditions Nanobioremediation for persistent pollutants Strengthen biosafety regulation Clear rules for environmental release of GM microbes Can India become self-reliant in REE production? Why is it in News? Union Cabinet approved a ₹7,280-crore scheme to establish integrated REPM manufacturing facilities in India. Aim: Convert rare earth oxides → metals → alloys → permanent magnets, reducing import dependence. Announcement comes as China tightens export controls on rare earth elements (REEs) and magnets, disrupting global supply chains. Relevance GS 1 – Geography Mineral distribution in India (monazite sands: TN, Kerala, Odisha). Resource geography and strategic minerals. GS 2 – International Relations Strategic minerals in geopolitics (US–China tech war). Global supply chain dependencies. Critical minerals alliances with Japan, US, EU. GS 3 – Science & Tech Metallurgy, magnet technology, refining and separation tech. REPM (NdFeB) magnet ecosystem. What are Rare Earth Elements (REEs)? Group of 17 elements: 15 lanthanides + Scandium + Yttrium. Properties: High magnetic strength, heat resistance, conductivity. Applications: EV motors Wind turbine generators Electronics and semiconductors Defence systems (missiles, radars, avionics) Smartphones, hard drives REEs are relatively abundant, but extraction is costly, energy-intensive, and polluting. China’s Dominance: Extent and Strategy 70% of global production, 90% of global processing, but only 30% of known reserves. Controls entire value chain: mining → processing → magnet manufacturing. Tools of dominance: 2009: Export quotas → struck down by WTO in 2015. 2020: Restricted graphite exports. 2021: Export licensing to control downstream industries. 2024-25: Export restrictions on 7 rare earths and finished magnets. Impact on industries: EV makers worst affected, followed by electronics & defence. Part of broader US–China trade and tech war. Why India is Prioritising REEs? REEs are critical for: Electric mobility (EV motors = NdFeB magnets) Renewables (wind turbines) Electronics manufacturing Defence and space systems India’s situation: Imports 53,000+ MT of REE magnets (FY 2024-25). Holds ~8% of global REE reserves, mainly monazite sands (TN, Kerala, Odisha, Andhra). Produces less than 1% of global REEs. Government Moves Toward Self-Reliance New ₹7,280-crore REPM scheme Supports end-to-end magnet manufacturing. Aim: Create India’s first complete rare-earth magnet supply chain. National Critical Mineral Mission (2024–2031) Total outlay: ₹34,300 crore (₹16,300 crore approved Jan 2024). Focus areas: Exploration Processing Refining Recycling (end-of-life electronics) Mining reforms Private sector allowed entry since August 2023. Auctions of REE-rich blocks in progress. Structural Challenges for India Refining and separation infrastructure absent (core of China’s strength). Skill gaps in metallurgy, material sciences, precision magnet making. Regulatory hurdles: environmental approvals, slow exploration licensing. Long gestation period: 5–8 years for full supply chain maturation. Opportunities India Can Leverage Large monazite deposits rich in Neodymium (Nd) → essential for permanent magnets. Growing ecosystem of magnet recycling from e-waste. Global diversification push away from China → aligns with India’s manufacturing ambitions. Strategic potential: Reduce dependence in EVs, defence, electronics. Build partnerships with Japan, US, EU (who are all seeking non-China REE suppliers). Strategic Significance Economic dimension Reduces import bill for magnets & REEs. Boosts Make in India for EVs, electronics, renewables. High-value segment: REPMs (NdFeB magnets) are 10x more valuable than raw REE oxides. Geopolitical dimension Counters China’s resource weaponisation tactics. Strengthens India’s role in global critical minerals alliances (Indo-Pacific partnerships). Security dimension Defence systems—from missile guidance to electronic warfare—depend on REPMs. Reducing vulnerability enhances strategic autonomy. Environmental dimension Domestic production necessitates safe mining + environmentally sound refining. Recycling can reduce pollution and import dependence simultaneously. Conclusion REEs are indispensable for modern technology; China dominates supply chains. India has reserves but lacks extraction–processing–magnet manufacturing capacities. The ₹7,280-cr scheme + National Critical Minerals Mission aim to build self-reliance. Success depends on deregulation, infrastructure, skilled workforce, and global collaboration. Sanchar Saathi app must be pre-installed on phones: DoT Why is it in News? Department of Telecommunications (DoT) has ordered all smartphone manufacturers to pre-install the Sanchar Saathi app on devices sold from March 2026. Manufacturers must ensure the app cannot be disabled or restricted. Move follows rising concerns about IMEI tampering, SIM misuse, cross-border digital frauds, and second-hand phone black markets. Relevance GS 2 – Governance Regulatory power of DoT. Device-level regulation, digital governance. Privacy vs security debate. Mandatory pre-installation and consumer rights. GS 3 – Internal Security / Cybersecurity IMEI tampering, SIM fraud, digital impersonation scams. CEIR integration for stolen device tracking. Telecom security architecture strengthening. What is Sanchar Saathi? Launched in 2023 as a portal; later developed into a mobile app. Provides services via CEIR (Central Equipment Identity Register). Core functions: Check mobile connections issued in your name. Report scam calls, financial fraud attempts. Identify and report IMEI tampering. Block, track, and remotely disable stolen/lost devices. Prevent re-activation of stolen phones using new SIMs. What Has the Government Ordered Now? Mandatory pre-installation of Sanchar Saathi on all phones sold after March 2026. Manufacturers must ensure no disabling, no removal, and no restriction of functions. Objective: Verify authenticity of IMEIs. Prevent second-hand market fraud, resale of stolen/blacklisted phones. Curb scam calls, cross-border digital fraud operations. Why This Mandate? Rising Telecom Security Threats IMEI tampering Single IMEI used simultaneously on multiple devices. Makes legal action, tracing, and blacklisting difficult. Cross-border digital fraud Fraudsters use Indian numbers abroad even after the original SIM is removed. Enables government impersonation scams, “digital arrest” frauds, UPI extortion attempts. Second-hand smartphone black market India has one of the world’s biggest used-phone markets. Stolen/blacklisted phones resold → buyers unknowingly become legal abettors. Cybercrime explosion Over 2.48 lakh complaints on Sanchar Saathi. Over 2.9 crore requests to check mobile connections linked to users. In October alone, 50,000 lost/stolen devices recovered via the app. Technical Layer: IMEI Authentication Push Device IMEI must match the one registered on the telecom network. Sanchar Saathi + CEIR enables: Real-time detection of tampered/spoofed IMEI. Auto-blocking of cloned devices. Permanent blacklisting of stolen phones. What About Privacy Concerns? DoT claims: The app collects no user data (as per Google Play declaration). Only helps verify IMEI and SIM-linkage. However: Pre-installation without option to disable → risk of perceived surveillance. Unclear whether the app will auto-access IMEI or require manual input. Past concerns: Apple earlier resisted mandatory pre-installed TRAI DND app due to permissions (access to SMS/call logs). Industry Reaction & Global Context Smartphone makers typically resist government-mandated apps. Apple has protested similar mandates in India before. Internationally, tech firms resist “bloatware” and privacy-sensitive pre-loads. The 2026 mandate may cause: Industrial pushback Negotiations on permissions Possible technical challenges for foreign OEMs Governance & Regulatory Perspective DoT’s rationale SIM-binding + IMEI-verification essential to: Eliminate anonymous numbers. Reduce cross-border scam ecosystems. Improve national telecom security architecture. Target outcome Unified system connecting device (IMEI), SIM, user identity, and operator’s network. A core element of India’s cyber-fraud prevention strategy. Benefits Expected Reduced resale of stolen phones. Faster recovery of lost devices. Curbing large-scale OTP, UPI, and impersonation scams. Greater transparency in second-hand sales. Strengthened digital public infrastructure security. Challenges Ahead Manufacturer resistance (Android & iOS). Potential privacy debates. Usability issues if app requires repeated verification. Risk of government overreach perception. Ensuring app does not become a surveillance pipeline. Overall Significance Strengthens India’s telecom cybersecurity ecosystem. Part of the trend toward device-level and SIM-level regulation. Linked to larger frameworks: CEIR Digital India National Cyber Security Strategy (pending) Shows government’s increasing focus on fraud prevention and digital trust Rising GPS Spoofing Incidents Near Indian Airports Why is is in News? Multiple instances of GPS spoofing and GNSS (Global Navigation Satellite System) interference have been reported near major Indian airports. Delhi airport saw repeated spoofing incidents, with similar reports from Kolkata, Amritsar, Mumbai, Hyderabad, Bengaluru, Chennai. Ministry of Civil Aviation informed Parliament that the Wireless Monitoring Organisation (WMO) has been directed to identify the source of interference/spoofing. These incidents pose a serious aviation safety risk, prompting DGCA and AAI to mandate reporting of any such events. Relevance GS 1 – Geography GNSS systems (GPS, GLONASS, Galileo, BeiDou). Satellite signal vulnerabilities in dense airspace. GS 2 – Governance / IR Civil aviation regulation by DGCA, AAI. Cross-border interference and geopolitical angle. GS 3 – Internal Security / Cybersecurity Electronic warfare, jamming, spoofing. Aviation cyber risks and national security. Protection of critical infrastructure. What is GPS Spoofing? GPS spoofing = broadcasting fake GPS signals stronger than the real satellite signals. Aircraft navigation systems may lock onto counterfeit coordinates, causing incorrect: Position Altitude Speed Flight path Creates dangerous navigation deviations, especially during approach and landing. What is GNSS Interference? GNSS = GPS + other satellite systems (GLONASS, Galileo, BeiDou). Interference includes: Jamming: blocking signal reception. Spoofing: altering positional data. Both severely impact aviation safety, particularly in low-visibility or conflict zones. What’s Happening in India? Delhi airport reported multiple GPS spoofing events, especially near Runway 10. Fake signals appear during approach and landing, when precision is critical. Other airports (Kolkata, Mumbai, Bengaluru, Hyderabad, Chennai, Amritsar) also reported similar patterns. November saw unusually high number of events around IGI Airport. Why is This Dangerous? Direct risks Incorrect aircraft position → flight deviations. Confusion between runways/flight paths. Possible near-miss or runway excursions. Overreliance on GNSS makes aircraft vulnerable. Indirect risks Increased pilot workload. Potential exploitation by cyber actors during geopolitical tensions. Compromised ATC situational awareness. Government & Regulatory Response DGCA Made reporting of spoofing mandatory since 2023. Working with AAI to enhance detection networks. AAI Monitoring interference near Delhi and other airports. Engaging with WMO to trace source. DoT/WMO Mobilised resources to locate approximate spoofing location. Investigating signal strength, direction, timestamps. Airlines & Pilots Instructed to report incidents immediately. Asked to maintain heightened situational vigilance. Possible Sources of Spoofing (Experts’ View) Rogue personal or commercial jammers. Cross-border interference drift. Criminal networks using spoofers for evasion. Malicious cyber actors (ransomware/malware targeting aviation infrastructure). Faulty or misconfigured commercial GNSS repeaters. No official source has been identified yet. Global Context GPS spoofing has risen worldwide: Middle East conflict zones Russia–Ukraine war China and South-East Asia maritime regions Civil aviation globally is increasingly vulnerable. ICAO has warned of “GNSS-denied environments” becoming common in geopolitically sensitive areas. Why India is More Vulnerable ? High-density aviation routes. Heavily GNSS-dependent landing procedures (RNP/GLS). Growing electronic warfare capabilities in neighbourhood. Widespread availability of cheap spoofers online. Technical & Security Measures Needed Deploy GNSS interference monitoring stations around airports. Integrate RAIM, SBAS, and inertial navigation fallback systems. Combine radar + ADS-B + multilateration for redundancy. Strict DoT controls on illegal RF devices. Cybersecurity upgrades across airports and ATC. Rare Earth Permanent Magnets (REPMs). Why is it in News? The Union Cabinet has approved a ₹7,280-crore scheme to promote domestic manufacturing of Rare Earth Permanent Magnets (REPMs). The scheme aims to set up integrated facilities that convert rare earth oxides → metals → alloys → finished magnets, reducing India’s overwhelming dependence on Chinese imports. This comes amid China’s continued control over global REE supply chains, periodic export restrictions, and rising global demand from EVs, wind energy, electronics, robotics, defence. Relevance GS-3: Economy & Infrastructure Critical minerals Strategic industries Import substitution GS-3: Science & Technology Advanced materials Metallurgy Magnetic technologies GS-2: International Relations Supply-chain resilience India–China trade dependencies Quad critical mineral collaboration What are Rare Earth Elements (REEs)? A group of 17 elements including lanthanides + scandium + yttrium. Known for: High magnetic strength High melting point Excellent conductivity REPMs (e.g., Neodymium-Iron-Boron (NdFeB)) are critical to: EV motors Wind turbines Electronics Defence systems (missiles, radars) Robotics and drones Why Does India Need REPM Manufacturing Now? Massive Import Dependence India imports nearly all REPMs, especially from China, despite having 8% of global REE reserves. In 2024–25 India imported ~53,000 tonnes of REPMs, over 90% from China. Domestic REE output is <1% of global production. Rising Domestic Demand Demand projected to rise sharply due to: Renewable energy expansion EV ecosystem growth Defence manufacturing Electronics PLI schemes Expected consumption to double by 2030. Strategic Vulnerability China controls: 70% of REE production 90% of global processing and magnet manufacturing Has repeatedly restricted exports (2009, 2020, 2023, 2024), hurting global supply chains. What Does the New ₹7,280-crore REPM Scheme Do? Key Features Supports 6,000 MT annual REPM production capacity (MT/PA). Five beneficiaries to be chosen through competitive bidding. Will offer: Capex support up to ₹6,450 crore 75% subsidy for setting up integrated REPM facilities Focus on integrated operations, i.e., processing from oxides → metals → alloys → magnets within India. Outcome Sought Reduce Chinese import dependence. Build domestic supply chains for EVs, defence, renewable energy. Upgrade India’s metallurgical and materials-science ecosystem. India’s Current Position Strengths Strong monazite reserves (Andhra Pradesh, Odisha, Tamil Nadu, Kerala). Indian Rare Earths Ltd (IREL) produces some oxides (Nd, Pr, Dy). Growing private sector interest in magnet recycling. Weaknesses No large-scale REPM manufacturing capacity. Refining, metallisation and alloying infrastructure is minimal. High entry-barriers: Cost of plant Technical know-how Skilled manpower Tight global intellectual property ecosystem China’s aggressive pricing makes competition very difficult. The China Factor How China Built Dominance State-supported mining, refining, and manufacturing. Integrated supply chains linking mining → oxides → metals → alloys → magnets. Low-cost production + subsidies. Heavy rare-earth technologies tightly controlled. China’s Leverage REEs used as a geopolitical tool—export controls imposed during trade tensions with: U.S. Japan Taiwan Europe Magnets are central to China’s grip on EVs, electronics, and defence manufacturing. How India Plans to Bridge the Gap ? Domestic Initiatives National Critical Mineral Mission (2024). Funding for exploration and mineral mapping. Mining block auctions (lithium, REEs). Magnet recycling initiatives (urban mining). Collaboration with Japan, Australia, U.S. on critical minerals. Required Steps for Self-Reliance Build refining and metallisation capacity. Incentivise private players and joint ventures. Increase IREL capacity + technology partnerships. Create a full supply chain reducing foreign dependence. Challenges Ahead High cost vs China’s subsidised pricing. Environmental concerns in mining/refining. Technological complexity in magnet production. Long gestation periods for mines (7–10 years). Need for advanced materials-science R&D and IP development. Why Pollution Affects North Indian Cities More Than South & West Why is it in News? A new analysis by Climate Trends (2025) covering 15 major Indian cities (2015–2025) finds: No city recorded safe air quality (AQI < 50). Delhi remains the most polluted city across 10 years. Pollution shows a regional pattern: north India worst, south-west relatively better. Persistent high PM levels in north; annual best AQI in Chennai & Mumbai. Relevance GS 1: Urbanisation Urban heat island effect Population density and air quality impact GS 2: Governance Air quality governance gaps NCR states’ coordination failures GS 3: Environment AQI trends Climate–pollution interactions Geographic determinants of pollution Winter inversion, Indo-Gangetic Plain dynamics What is AQI & Why It Matters? Air Quality Index (AQI) categorises air quality from 0–500: 0–50: Good 51–100: Satisfactory 101–200: Moderate 201–300: Poor 301–400: Very Poor 401–500: Severe The study uses annual mean AQI—a more reliable long-term pollution indicator than daily spikes. Overall Air Quality Performance Delhi’s annual mean AQI: Highest in 2016 (over 250) Slight improvement after 2019 Still remains in poor–very poor category In 2025 (so far): Delhi AQI ~180–190 Lucknow, Varanasi, Ahmedabad, Pune: also experienced prolonged poor AQ levels North Indian Cities Perform the Worst Six cities—Delhi, Lucknow, Varanasi, Kanpur, Noida, Ghaziabad—consistently show high PM2.5 & AQI deterioration, especially winter. Annual best AQI never enters “good” or even “satisfactory” range. South & West Indian Cities Perform Better Chennai, Bengaluru, Mumbai, Visakhapatnam show: Better mean AQI levels (120–140 range) More stable improvement post-2019 But they still fall short of clean air standards. City-Level Variations Chennai & Mumbai: best annual quality among all 15 cities Bengaluru: did not record safe annual AQI even once but still far cleaner than north Chandigarh, Visakhapatnam, Mumbai saw AQI improvements from 800 → 140 days of good-moderate air. Why North Is More Polluted: Geographic & Climatic Factors 1. Indo-Gangetic Plain Topography North India is landlocked, unlike coastal south/west. Bordered by the Himalayas in the north, preventing dispersion of pollutants. Creates a “pollution bowl” where PM2.5 gets trapped. 2. Winter Inversion + Cold, Dry Air Winter causes thermal (temperature) inversion: The layer of warm air sits above cold air near the surface Acts as a lid, trapping pollutants Result: Smog, stagnation, prolonged pollution episodes. 3. Dust Load + Biomass Burning Indo-Gangetic belt has heavy soil dust, crop residue burning, brick kilns, industrial clusters. 4. Weak Wind Speeds North experiences slow winds in winter; lack of sea breezes. This reduces pollutant flushing. Why South & West Perform Better ? Coastal cities (Chennai, Mumbai): Sea breeze circulation disperses pollutants Higher humidity and cleaner marine air reduce dust Less temperature inversion Fewer winter smog events Lesser biomass burning and lower dust aerosol load Structural Factors Adding to North’s Problem Dense urban structure → “surface roughness” that slows wind dispersion High vehicle density More industrial clusters High secondary aerosol formation in winter