Content

1. National Quantum Mission – 1,000 km Secure Communication Milestone
2. 11 Years of Pradhan Mantri MUDRA Yojana (PMMY)

National Quantum Mission – 1,000 km Secure Communication Milestone

Why in News?

• India demonstrated a 1,000 km quantum communication network using QKD, among the longest globally, within less than three years of the National Quantum Mission launch in October 2024.
• The milestone reflects ahead-of-target progress, considering the mission’s objective of achieving a 2,000 km secure quantum communication network within an eight-year timeline.

Relevance

• GS III (Science & Technology)
  • Quantum technologies, cybersecurity, emerging technologies, innovation ecosystem
• GS II (Governance)
  • Mission-mode programmes, R&D ecosystem, public-private partnerships

Practice Question

Q1.“Quantum technologies are set to redefine the future of cybersecurity and digital sovereignty.”Examine in the context of India’s National Quantum Mission.(250 Words)

National Quantum Mission (NQM)

About

• National Quantum Mission is a flagship initiative of the Department of Science and Technology with a financial outlay of ₹6003 crore from 2023–24 to 2030–31.
• The mission aims to position India as a global leader in quantum technologies by fostering a strong ecosystem for scientific research, industrial innovation, and indigenous capability development.

Objectives

• The mission focuses on seeding, nurturing, and scaling quantum research and innovation to ensure long-term technological leadership and strategic autonomy in emerging technology domains.
• It aims to drive technology-led economic growth while reducing dependence on foreign quantum systems, particularly in secure communication and advanced computing infrastructure.

Four Key Domains

• Quantum Computing aims to develop intermediate-scale quantum computers with 50–1000 physical qubits over eight years to surpass classical computational limitations.
• Quantum Communication focuses on establishing secure communication networks over 2000 km using quantum key distribution and satellite-based systems for strategic and civilian use.
• Quantum Sensing and Metrology targets development of high-precision devices such as atomic clocks and magnetometers for applications in navigation, defence, and communication systems.
• Quantum Materials and Devices emphasizes indigenous fabrication capabilities to support quantum hardware development and reduce reliance on imported critical components.

Implementation Structure

• The mission follows a Hub-and-Spoke model with four thematic hubs hosted at premier institutions to enable coordinated research, collaboration, and efficient knowledge dissemination.

Strategic Alignment

• The mission aligns with initiatives like Digital India, Make in India, and Skill India, integrating quantum technologies into broader economic, industrial, and human resource development strategies.
• It prioritizes applications in defence, cybersecurity, and critical infrastructure, highlighting the strategic importance of quantum technologies in national security and digital sovereignty.

Key Developments

1. Quantum Communication Breakthrough

• A 1,000 km QKD network was successfully demonstrated using indigenous technology developed by QNu Labs, marking a major advancement in secure quantum communication systems.
• The system is designed to operate across complex terrains including underwater and underground environments, expanding its potential use in defence and critical infrastructure networks.

2. Startup Ecosystem Expansion

• Government support has expanded to 17 startups, including nine new additions working across quantum computing, sensing, communication, and advanced materials development domains.
• These startups are developing technologies such as quantum biosensors, photon detection systems, quantum positioning tools, and atomic memory devices, strengthening India’s deep-tech ecosystem.

3. RDI Funding Push

• The Technology Development Board received around 100 proposals within two months, indicating strong industry interest in government-supported research and development funding initiatives.
• The Biotechnology Industry Research Assistance Council recorded nearly 200 applications in areas like cancer research, gene therapy, and biomanufacturing, showing cross-sectoral innovation momentum.

4. Financial Innovation

• Optionally Convertible Debt has been introduced as a funding instrument to support startups without immediate equity dilution, thereby encouraging private investment alongside public funding support.
• This reflects a shift towards blended finance models combining public and private capital to scale innovation in high-risk deep-tech sectors like quantum and biotechnology.

5. Capacity Building

• Under the mission, 23 academic institutions have been approved to establish quantum teaching laboratories, with over 100 additional proposals currently under evaluation for expansion.
• This initiative aims to build a skilled workforce pipeline necessary for sustaining India’s long-term ambitions in quantum research, development, and industrial applications.

Key Takeaways

• The mission shows ahead-of-schedule progress in quantum communication infrastructure, indicating strong institutional coordination and technological capability development within a short time frame.
• There is a clear focus on indigenisation and startup-led innovation, reducing dependence on foreign technologies while strengthening domestic deep-tech capabilities.
• Integration of research, startups, funding mechanisms, and academia reflects a comprehensive innovation ecosystem approach under mission-mode governance.

Prelims Pointers

• NQM → Department of Science and Technology
• Outlay → ₹6003 crore
• Launch → 2024 (operational phase)
• Target → 2000 km quantum communication
• Achieved → 1000 km QKD network
• QKD → Quantum Key Distribution
• QKD → based on quantum mechanics principles
• QKD → theoretically unbreakable encryption
• OCD → Optionally Convertible Debt
• OCD → reduces equity dilution

11 Years of Pradhan Mantri MUDRA Yojana (PMMY)

Why in News?

• PMMY completes 11 years (launched April 2015), emerging as a major financial inclusion instrument with over 57 crore loans disbursed worth ₹40.07 lakh crore.
• The scheme reflects a transition towards a technology-driven, integrated, and sustainable lending framework, strengthening grassroots entrepreneurship and micro-enterprise growth across India.

Relevance

• GS II (Governance & Social Justice)
  • Financial inclusion, welfare schemes, inclusive growth
• GS III (Economy)
  • Micro-enterprises, credit access, entrepreneurship, MSME sector

Practice Question

Q1.“Access to institutional credit is a key driver of inclusive economic growth.”Discuss in the context of Pradhan Mantri MUDRA Yojana.(250 Words)

Pradhan Mantri MUDRA Yojana (PMMY)

About

• PMMY was launched on 8 April 2015 with the objective of “Funding the Unfunded” by providing institutional credit to non-corporate, non-farm micro and small enterprises.
• The scheme offers collateral-free loans up to ₹20 lakh to support income-generating activities across manufacturing, trading, services, and allied agricultural sectors.

Objectives

• The scheme aims to expand formal credit access to micro-enterprises, reducing dependence on informal sources such as moneylenders and promoting financial inclusion.
• It seeks to promote entrepreneurship, employment generation, and income enhancement, especially among marginalized and first-time business owners.

Institutional Architecture

• PMMY operates through a three-tier structure comprising MUDRA Ltd., Member Lending Institutions, and borrowers, ensuring efficient credit flow from institutions to beneficiaries.
• Lending institutions include SCBs, RRBs, Small Finance Banks, NBFCs, and MFIs, which directly provide loans while MUDRA offers refinance support.

Loan Categories  

• Shishu category provides loans up to ₹50,000, targeting early-stage entrepreneurs with minimal capital requirements and no prior credit history or collateral support.
• Kishor category covers loans between ₹50,000 and ₹5 lakh, supporting enterprises requiring working capital or funds for stabilisation and initial expansion.
• Tarun category includes loans from ₹5 lakh to ₹10 lakh, enabling growing enterprises to scale operations, invest in equipment, and enhance productivity.
• Tarun Plus category, introduced in 2024, extends loans from ₹10 lakh to ₹20 lakh for successful borrowers seeking further business expansion and consolidation.

Key Developments

1. Scale and Outreach

• PMMY has disbursed over 57 crore loans worth ₹40.07 lakh crore, reflecting its massive outreach and role in democratizing access to institutional finance.
• More than 12 crore accounts belong to new entrepreneurs, indicating strong support for first-time business owners entering the formal financial system.

2. Financial Inclusion Impact

• Around 60% of loan accounts are held by women, highlighting the scheme’s role in promoting women-led entrepreneurship and economic empowerment.
• Approximately 21% of accounts belong to new entrepreneurs in FY 2024-25, reflecting expansion of formal credit access to previously excluded populations.

3. Social Inclusion

• SC, ST, and OBC categories account for 45.52% of loan accounts and 31.77% of total disbursed amount, indicating inclusive outreach across socially disadvantaged groups.
• The scheme has played a key role in formalising micro-businesses and integrating them into the formal financial ecosystem.

4. State-wise Performance

• Uttar Pradesh recorded the highest disbursement at ₹58,111 crore, followed by Bihar and Maharashtra, indicating strong uptake in populous and developing states.
• The regional spread reflects the scheme’s role in balancing regional disparities and supporting local economic activity across diverse geographies.

5. Strengthened Credit Ecosystem

• Integration with schemes like Credit Guarantee Fund for Micro Units (CGFMU) reduces credit risk for lenders, enabling smooth flow of collateral-free loans.
• Digital platforms such as JanSamarth portal streamline loan applications, integrating multiple schemes, lenders, and verification systems for efficient credit delivery.

6. Digital Transformation

• Increasing digitization of MUDRA transactions has improved transparency, efficiency, and accessibility, reducing procedural barriers for borrowers and lending institutions.
• Expansion of digital payments, including UPI usage among beneficiaries, reflects deepening financial inclusion and formalisation of transactions.

7. Institutional Performance

• MUDRA Ltd. reported its highest-ever profit of over ₹827 crore in FY 2024-25, indicating financial sustainability alongside developmental objectives.
• This reflects a shift towards a self-sustaining refinance model, balancing financial viability with inclusive credit expansion.

Key Takeaways

• PMMY has evolved into a mass-scale financial inclusion instrument, significantly expanding access to institutional credit for micro-enterprises across India.
• The scheme demonstrates a strong focus on women empowerment, social inclusion, and first-time entrepreneurship, contributing to inclusive economic development.
• Integration of digital platforms, credit guarantees, and institutional support reflects a holistic and scalable lending ecosystem under mission-mode governance.

Prelims Pointers

• PMMY → launched in 2015
• Tagline → Funding the Unfunded
• Target group → non-corporate, non-farm micro enterprises
• Loan limit → up to ₹20 lakh
• Collateral → not required
• Implementing agency → MUDRA Ltd.
• Structure → three-tier model
• Shishu → up to ₹50,000
• Kishor → ₹50,000 to ₹5 lakh
• Tarun → ₹5 lakh to ₹10 lakh
• Tarun Plus → ₹10 lakh to ₹20 lakh