Cotton Cultivation in India

Source: HT

Why in News?

Apart from extending the 11% import duty waiver on cotton, the Union government has raised the MSP for cotton for the 2025–26 season and expanded procurement efforts to support farmers facing price pressures and stabilize the textile industry.

• The move addresses both the challenges of rising imports and the need to safeguard farmer welfare amid a 15-year low in domestic cotton production.

What is the State of Cotton Cultivation in India?

• About: Cotton, popularly called “White Gold”, is India’s most important commercial crop, contributing about one-fourth of global output. 
  • Nearly two-thirds (67%) of the area is rain-fed, making cultivation highly dependent on monsoons, while only a third (33%) is irrigated.
  • Cotton cultivation in India dates back to the Indus Valley Civilization, with textiles famed worldwide for their quality and craftsmanship, but under colonial rule India was reduced to a raw cotton supplier for British mills.
• Growing Conditions: It is a subtropical crop that requires a warm, sunny, frost-free climate with adequate humidity.
  • It grows well in deep alluvial soils (north India), black clayey soils (central India), and red-black mixed soils (southern India).
  • While it can withstand some salinity, the crop is extremely vulnerable to waterlogging, making proper drainage crucial. 
  • Cotton is primarily a Kharif crop, with its sowing season starting in early April-May in northern India and during the monsoon season in the southern zone.
• Hybrid and Bt Cotton: Hybrid Cotton is produced by crossing two parent varieties with different traits, often occurring naturally through cross-pollination.
  • Bt Cotton is a genetically modified variety that resists common pests, especially bollworms.
• India’s Scenario: India is the second-largest producer and consumer of cotton in the world, after China
  • Cotton contributes 24% of global output; India has the largest acreage but ranks 36th in productivity.
• Significance: Cotton contributes significantly to foreign exchange, with exports of 30 lakh bales (6% of global share) in 2022–23, sustains 6 million farmers and 40–50 million workers in processing and trade. 
  • The cotton textiles industry is the second-largest employer in India, after agriculture.

What are the Key Challenges to the Cotton Sector in India?

• Weather Variability & Climate Risks: Cotton is highly climate-sensitive, with yields impacted by erratic rainfall, droughts, floods, declining soil fertility, and limited irrigation. 
  • Rising temperatures and shifting rainfall patterns add long-term risks to sustainable cotton production.
• Low Yield & Outdated Practices: Many farmers still rely on traditional methods, leading to low productivity (480 kg/ha in India vs world avg. 800 kg/ha) and inferior fibre quality. 
  • Lack of access to modern techniques, certified seeds, and weed management further widens the gap, especially for small and new farmers in rural areas.
• Pest & Disease Infestations: The Pink Bollworm (PBW) and other pests, along with fungal infections, are reducing cotton output. 
  • India's cotton production has dropped to a 15-year low of 25 million bales due to these issues and declining GM cotton effectiveness.
• High Cost of Cultivation: Rising input costs for seeds, fertilizers, pesticides, and cheaper imports make cotton farming economically unsustainable, particularly for small and marginal farmers.
• Market-Related Challenges: Farmers face restricted market access and are often forced to sell at below-MSP rates, while global market fluctuations, such as tariffs and duties, affect their profitability and export competitiveness.

What Measures Can be Taken to Boost the Cotton Industry in India?

• Integrated Pest & Crop Management: Adopt Integrated Pest Management (IPM) using natural controls, trap crops, and beneficial insects while expediting approval of pest-resistant GM hybrids (whitefly- and pink bollworm-resistant varieties) to reduce pesticide dependency.
• Bridging the Yield Gap: Boost productivity through NFSM-led large-scale demonstrations, adoption of High-Density Planting Systems (HDPS), and the 5-year Mission for Cotton Productivity (focused on extra-long staple varieties), aiming at improved yield, sustainability, and reduced import dependence.
• Modernisation & Infrastructure: Utilise Technology Upgradation Fund Scheme (TUFS) and MITRA to modernise ginning, spinning, and weaving units, while encouraging investment in cotton-linked clusters for global competitiveness.
• Extension & Farmer-Centric Services: Enhance agricultural extension via Krishi Vigyan Kendras and CCI, and scale digital platforms like the Cott-Ally App to deliver real-time updates on MSP, weather, pest alerts, and procurement logistics.
• Branding & Global Competitiveness: Expand “Kasturi Cotton” branding with QR-code traceability to assure quality, build a distinct identity for Indian cotton, attract premium prices, and enhance trust among global buyers.

Conclusion

Cotton remains central to India’s agriculture–industry–trade nexus, but persistent low yields, pest threats, climate risks, and global trade pressures undermine its potential. Strengthening MSP operations, sustainable farming practices, modern infrastructure, and branding initiatives will be crucial to ensure farmer welfare, export competitiveness, and textile sector growth.

Drishti Mains Question: Q. What are the key challenges faced by the cotton sector in India? Suggest measures to improve the productivity of the cotton sector in India.

21st Annual Global Investor Conference 2025

Source: PIB

Why in News? 

The Union Minister of Commerce and Industry addressed the 21st Annual Global Investor Conference 2025, emphasizing India's strong economic performance and its vision of becoming a developed nation by 2047 under Viksit Bharat.

What are the Key Highlights of 21st Annual Global Investor Conference 2025?

• Impressive Economic Growth: India’s economy grew by 7.8% in the Q1 of FY 2025, the highest since 2020. 
  • Private investment went up by 66%, FDI increased by 14%, and inflation (CPI) was the lowest in many years. 
• Manufacturing and Make in India: The Manufacturing PMI reached a 17.5-year high, showing strong growth in production. 
  • The government is using infrastructure as a growth driver to boost demand. Focus is also on making drones, semiconductors, and CRGO steel in India to cut imports and build local industries.
• Ease of Doing Business and Reforms: The GST 2.0 has made taxation simpler and is expected to increase demand. 
  • Along with this, lower corporate and personal taxes and RBI’s easy monetary policy have boosted business activity, while keeping inflation at just 1.5%.
• Banking and Financial Confidence: The banking sector is performing at its best in years, giving confidence to depositors and borrowers. 
  • Also, millions of new demat accounts are being opened each month, showing growing participation in stock markets and more domestic investment.
• Trade and International Engagements: India has signed trade agreements with Mauritius, UAE, and Australia, and is negotiating with the EFTA bloc, EU, and UK.
• Sustainability: The government is promoting renewable energy and energy-efficient products like LED bulbs and 5-star appliances. 
  • It is also stressing Zero Defect, Zero Effect (ZED) manufacturing, which means making high-quality goods that do not harm the environment.

What are the Key Challenges to the Indian economy and Suggest Measures to enhance its Resilience?

Key Challenges	Measures to Enhance Resilience
Rising global protectionism and geopolitical conflicts are straining India’s trade.	Develop multi-aligned trade strategies, reduce oil dependence, diversify energy partners, and accelerate renewable transition.
Imported inflation surged from 1.3% (June 2024) to 31.1% (Feb 2025) due to rising prices of precious metals, oils, and fats.	Strengthen financial norms, deepen domestic capital markets, promote rupee internationalisation, and manage currency sovereignty.
Conflicts in the Red Sea and Indo-Pacific, along with protectionist trade policies, have raised transport costs and disrupted supply chains.	Invest in climate-smart agriculture, resilient seeds, cold chains, and maintain transparent food reserves to ensure price stability and rural income.
Negotiations on the India-EU FTA and India-Canada trade talks remain stalled due to disputes over data protection, IPR, tariffs, limiting India’s trade diversification	Focus on indigenous R&D in tech (AI, 5G), build digital infrastructure, and enhance skill development and public health systems.

Conclusion

India’s economy remains strong in fundamentals and reforms, yet vulnerable to global shocks, trade disputes, and supply chain risks. Building resilience through diversified trade, energy security, financial stability, and human capital is vital. A balanced path of domestic demand-led growth and global leadership will drive India’s vision of Viksit Bharat 2047. 

Drishti Mains Question Discuss the key achievements that highlight the strength of the Indian economy and the structural measures required to ensure its resilience in the face of global uncertainties.

Foreign Capital Flows and India's Balance of Payments

Source: IE

Why in News? 

India has emerged as the world’s fastest-growing major economy, recording an average annual GDP growth of 8.2% from 2021 to 2024, outpacing countries like Vietnam, China, and the United States.

• Despite strong growth, India faces low net foreign capital inflows, reflecting a gap between GDP expansion and investor sentiment in its Balance of Payments.

What is Balance of Payments? 

• About: The BoP serves as a crucial economic indicator, detailing all financial transactions between India and the rest of the world.  
  • This comprehensive ledger tracks the inflow and outflow of money where inflows are marked positive and outflows negative, reflecting the country's economic interactions globally. 
  • It measures the relative demand for the rupee against foreign currencies, crucially influencing exchange rates and economic stability. 
• Component of BoP: 
  • Current Account: 
    • Trade of Goods: Tracks physical imports and exports, indicating the balance of trade. A deficit suggests higher imports than exports. 
    • Trade of Services (Invisibles): Includes sectors like IT, tourism, and remittances, contributing positively to India's current account surplus despite trade deficits. 
    • The net of these two components determines the current account balance.
  • Capital Account: 
    • Captures investments such as Foreign Direct Investment (FDI) and Foreign Institutional Investments (FII), essential for economic growth and stability. 
    • The capital account flow reflects factors such as commercial borrowings, banking, investments, loans, and capital. 

What is the Current State of India's Balance of Payments (BoP)?

• Trade Deficit and Invisibles Account: India's trade deficit continues to widen, reaching USD 287.2 billion in 2024-25. 
  • However, this has been offset by surpluses in the "invisibles" account, primarily due to services exports and remittances from the Indian diaspora. 
  • These surpluses have helped maintain a manageable Current Account Deficit (CAD), even as merchandise trade deficits balloon.
• Growth & Investment Paradox: Despite robust growth, India has faced challenges in attracting foreign investments. In the financial year 2023-24, foreign portfolio investments (FPIs) amounted to USD 25.3 billion. 
  • However, India experienced significant net outflows in previous years, with USD 5.1 billion in 2022-23, USD 14.6 billion in 2024-25, and USD 2.9 billion in 2025-26 (as of September 5). 
    • This trend highlights a paradox where India's economic expansion does not align with foreign capital influx.
• Private Equity and Venture Capital Exits: The increase in exits from private equity (PE) and venture capital (VC) investments reflects profit-booking and matured investments, rather than new capital creation.
  • The total value of PE/VC exits was USD 24 billion in 2022, USD 29 billion in 2023, and USD 33 billion in 2024.
  • Foreign investors prioritize corporate earnings, the overall business climate, and market valuations over the headline GDP growth figures.

Protected Areas

Source: DTE

Why in News?

A recent study highlights the importance of Protected areas (PAs) in balancing conservation with community livelihoods. 

What are Protected Areas?

• About: A protected area in India is a designated region focused on conserving biodiversity and protecting wildlife from human interference.
  • India has a network of over 1,000 Protected Areas, including 107 National Parks, covering approximately 5.32% of the country's total geographical area.
  • These areas are categorized into different types, each with varying levels of protection and regulation.
• Different Types of Protected Areas: 
  • National Parks: National Parks are the most strictly protected areas in India, offering the highest level of legal protection. 
    • Declared under the  Wildlife (Protection) Act, 1972, these parks prohibit all human activities except for scientific research and controlled tourism. 
    • Activities such as mining, logging, and grazing are strictly prohibited.
    • While the State Government is primarily responsible for their management, bodies like the National Wildlife Board (NWLB) and National Tiger Conservation Authority (NTCA)  may also oversee specific projects, especially for species like tigers.
  • Wildlife Sanctuaries: Wildlife Sanctuaries, also established under the WPA, 1972, allow more flexibility than National Parks. 
    • Certain human activities, such as grazing and the collection of forest products, are permitted, as long as they do not harm wildlife. 
    • These sanctuaries are maZnaged by the State Forest Departments, with support from wildlife organizations and experts.
  • Conservation Reserves: Conservation Reserves are designated areas under the WPA that aim to protect wildlife and biodiversity while allowing controlled human activities such as grazing and firewood collection. 
    • These reserves are intended to buffer critical habitats, protect wildlife corridors, and conserve biodiversity outside of heavily protected zones.
    • They allow local communities to participate in conservation efforts while maintaining sustainable livelihoods. 
    • The State Government oversees these areas, with active involvement from local stakeholders and conservationists.
  • Community Reserves: Community Reserves are areas that involve direct participation from local communities in conservation efforts. 
    • These reserves can be established on private or community-owned land and aim to enhance biodiversity conservation and sustainable resource management. 
    • Activities like tourism, agriculture, and small-scale forest product extraction are allowed, provided they support conservation goals. 
    • The management of these reserves is carried out by the State Government, with significant input from local communities and NGOs.

India’s Federal Design and J&K Statehood

Source: TH

Why in News? 

The Supreme Court of India has sought a detailed response from the Centre on restoring statehood to Jammu and Kashmir (J&K) in the plea Zahoor Ahmed Bhat vs UT of J&K. 

• It is argued that delaying the restoration of J&K’s statehood infringes citizens’ rights and undermines federalism, a part of the Constitution’s basic structure.

How are States Created in India?

• Admission: A new State may be admitted into India if it has an organized political unit, guided by international law. 
  • Example: J&K’s accession in 1947 via the Instrument of Accession.
• Establishment: Territory acquired under international law can be established as a State. Example: Goa and Sikkim.
• Formation/Reorganisation: Existing States can be reorganized under Article 3 of the Constitution, which empowers Parliament to form a new State by separating or merging territories, increasing or diminishing a State’s area, and altering the boundaries or names of States. Example: Formation of Telangana from Andhra Pradesh.
• Limitation: While the Union can diminish a State’s area, converting it into a Union Territory is not specifically mentioned in the Constitution of India, which underscores the need to restore J&K’s statehood in line with the principle of federalism.
  • But there are certain considerations that brought about the scope for the creation of Union Territories.

What is India’s Federal Design and its Impact on J&K Statehood?

• India’s Federal Design: India is a Union of States, indivisible and without a right to secede (Article 1).
  • The Constitution uses the term ‘Union’ instead of ‘Federation’ to balance unitary strength with federal character.
  • Federalism ensures equitable resource distribution and representation of States at the Union level.
  • Rajya Sabha as a permanent House ensures States’ representation at the Union level, safeguarding federal interests.
  • Federalism is part of the Constitution’s basic structure, meaning it cannot be abrogated.
• J&K Context: The 2019 Jammu and Kashmir Reorganisation Act transformed the region into two Union Territories: Jammu & Kashmir and Ladakh. 
  • Although the constitutional validity of this act was upheld by the Supreme Court in 2023, it mandated the eventual restoration of J&K’s statehood.
  • Critics contend that the prolonged delay undermines federalism by extending Union dominance through the Lieutenant Governor, thereby limiting the powers of elected representatives. 
  • Conversely, proponents argue that due to J&K’s sensitive security context, maintaining Union control is crucial until stability is firmly established.
• Importance of Restoring Statehood: It reaffirms India's commitment to federal integrity by promoting shared governance between the Union and States.
  • It empowers the elected Assembly, and enhances democratic rights through better representation and accountability. 

Drishti Mains Question: Q. Examine India’s federal design and explain its significance in the context of restoring Jammu & Kashmir’s statehood.

WMO Projects La Niña Resurgence in 2025

Source: WTO

The World Meteorological Organization (WMO) has projected that the La Niña weather phenomenon may return between September and November 2025.

• La Niña: La Niña is a natural climate phenomenon that occurs when the surface waters of the central and eastern Pacific Ocean become unusually cold due to stronger-than-normal trade winds pushing warm water towards the Western Pacific (near Asia and Australia).
  • It is opposite to El Niño, which is characterized by unusually warm sea surface temperatures in the same region.
• Effects of La Niña on India’s Monsoon: La Niña boosts southwest monsoon rainfall, benefiting Kharif crops and replenishing rivers, lakes, and groundwater. 
  • However, excessive or uneven rain can cause flooding and waterlogging in low-lying regions like Assam and Bihar. 
  • It also often brings colder-than-normal winters to northern states such as Jammu & Kashmir and Himachal Pradesh.

La Niña and El Niño

Feature	El Niño	La Niña
Oceanic Condition	Sea surface temperatures rise in central & eastern tropical Pacific	Sea surface temperatures drop in central & eastern tropical Pacific
Trade Winds	Weaken or reverse, allowing warm water to move eastward	Strengthen, pushing warm water westward toward Asia
Global Weather Effects	Floods in western South America & southern North America. Droughts in Australia, Southeast Asia, and parts of India.	Floods in India, Southeast Asia & Australia. Droughts in Western South America and Southern US

World Meteorological Organization (WMO): WMO is a UN specialized agency for weather, climate, hydrology, and related geophysical sciences. 

• It originated from the International Meteorological Organization (IMO), which was founded in 1873 to standardize global weather observations. 
• IMO became WMO in 1950, and in 1951, it was designated a UN specialized agency.

Read More: El Nino and La Nina