(14 May, 2025)



Targeting Higher Growth Rate for India

For Prelims: World Bank, Female labor force participation, Gross Domestic Product  Middle-Income Trap, India's economic growth outlook, India's economy 

For Mains: Key Challenges Hindering India’s Higher GDP Growth, Strategy for Higher Growth Rate, India’s path to becoming a high-income economy, Middle-income trap and its implications for India  

Source: BS 

Why in News? 

India’s Gross Domestic Product (GDP) growth has largely hovered around 6% from 2000 to 2025, with the exception of a brief 8% period between 2006 and 2010, which is often referred to as the "6% GDP growth trap.” 

  • Breaking this ceiling calls for structural reforms, tech investment, human capital development, and sustainability. 

What is the Current State of the Indian Economy? 

  • GDP Growth: IMF projects India's GDP growth at 6.2% in 2025 and 6.3% in 2026, making it the fastest-growing major economy. 
  • Foreign Investment & Forex Reserves: Forex reserves rose to USD 688.13 billion in May 2025, nearing the all-time high of September 2024. 
  • Infrastructure: Operational airports increased from 74 (2014) to 159 (2025), 50 new airport projects are planned till 2030. India is one of the world's fastest growing civil aviation markets. 
  • Manufacturing: Capacity utilization reached 75.3% in 2025, indicating strong industrial activity. This suggests factories are operating near potential, reflecting robust demand and likely encouraging private investment. 
  • Employment: In 2024, India’s overall unemployment rate declined slightly to 4.9% (from 5.0% in 2023), with rural unemployment falling to 4.2% and urban unemployment stable at 6.7%. This indicates a gradual improvement in employment conditions, especially in rural areas. 

What are the Key Challenges Hindering Higher GDP Growth Rate in India? 

  • Low Investment and Job Creation: Over the past 25 years (2000-2025) India's investment-to-GDP ratio has fallen from 39-42% (between 2006 & 2010) to 33% (2023), with private investment dropping from 18% to 9.8%. This has slowed down economic growth, capacity expansion, and job creation.  
    • Also there has been a decline in employment elasticity of investment ( i.e. fewer jobs are created for each unit of investment) from 0.44 in 2000s to 0.21 in 2023.  
      • This is due to capital-intensive sectors like infrastructure and automation absorbing most investments, limiting large-scale job creation. 

Trends_In_Key_Economic_Ratios

  • Fiscal Constraints & Inefficient Public Spending: A significant portion of the government’s revenue (around 25%) goes to interest payments on public debt, limiting fiscal space for crucial investments in sectors like education and infrastructure.  
    • India's tax-to-GDP ratio  remains low at 11.7%, compared to over 24% in countries like the UK, France, and South Africa which restricts resource generation.  
      • Further inefficient public spending, driven by misallocation and bureaucratic delays, reduces the effectiveness of policies in sectors critical for growth. 
  • Infrastructure Gaps & Trade Barriers: India’s logistics cost is estimated at 14-18% of GDP (Economic Survey 2022-23), compared to the global benchmark of around 8%, due to factors like poor road connectivity, port congestion, and fragmented supply chains. 
    • The export-to-GDP ratio (19.5%) is also low due to high tariffs and trade barriers, coupled with slow-paced trade agreements, limiting access to global markets for Indian products, especially for small businesses. 
  • Social & Institutional Weaknesses: Economic growth is concentrated in urban sectors, leaving rural areas, especially agriculture, behind.  For example, the top 10% hold 77% of wealth, while the bottom 50% share only 13% of national income. 
    • Corruption and institutional inefficiencies contribute to these disparities, with India ranked 96th on the Corruption Perceptions Index (2024). 
  • Global and External Factors: India’s growth is impacted by global uncertainties, including geopolitical tensions (e.g., the Russia-Ukraine war), economic slowdowns in major economies (e.g., US, China), and oil price fluctuations 
    • Its dependence on foreign investment makes it vulnerable to external shocks, as seen during the global financial crisis and pandemic disruptions. 

What are the Key Drivers of Growth in the Indian Economy? 

  • Domestic Demand & Consumption: India’s large consumer base and urbanization drive demand, particularly in FMCG, e-commerce, and automobiles. Rural consumption is bolstered by agricultural output and government schemes 
    • Private consumption grew by 6.9% in Q3 FY25, while rural FMCG sales rose 4% in April-June 2024. 
  • Infrastructure & Capital Expenditure: Infrastructure projects under  National Infrastructure Pipeline (NIP), Gati Shakti, and Bharatmala are stimulating economic activity.  
    • The FY25-26 budget allocated Rs 11.21 lakh crore for capex, enhancing logistics and urban infrastructure. Capex grew at a 38.8% CAGR from FY20-FY24 (Economic Survey 2024-25). 
  • Digital Economy & Fintech: India’s digital economy accounted for 11.74% of GDP in 2022-23. UPI transactions reached a record Rs 23.48 lakh crore in January 2025. These all are boosting business efficiency and tax compliance. 
  • Manufacturing Growth & Supply Chains: PLI schemes and a focus on high-value manufacturing (electronics, semiconductors, EVs) are boosting the sector. Electronics exports reached USD 23.6 billion in FY23, with mobile phones making up 43%.  
    • Geopolitical tensions in the Red Sea and Suez Canal are disrupting trade routes, prompting firms to adopt the China+1 strategy and shift supply chains to India. 
  • Services Sector: India’s services sector, led by IT and fintech, continues to be a major growth driver. Services exports grew 12.8% in FY25, up from 5.7% in FY24, reinforcing India’s position in global outsourcing. 
  • Energy Transition: India is focusing on renewable energy and green hydrogen.  As of October 2024, renewable energy capacity reached 203.18 GW, accounting for 46.3% of total installed capacity.  
    • India aims for an USD 8 billion green hydrogen market by 2030. 
  • Fiscal and Monetary Stability: Prudent fiscal policies and stable monetary measures ensure macroeconomic stability.  
    • The fiscal deficit is expected to decline to 4.9% of GDP in FY25, while retail inflation eased to 4.9%, despite food inflation at 8.4%. 

What Steps Should be Taken to Achieve Higher GDP Growth? 

  • Boost Private Investment & Promote Job-Rich Growth: There is a need to focus on labour-intensive industries like textiles and apparel, leather and footwear, food processing 
    • Incentivize investment through zero import duties on key inputs to reduce input costs for domestic manufacturers, removal of non-tariff barriers, and improved ease of doing business. 
    • Promote FDI in sector-specific areas (e.g., Swiss in food, German/Taiwanese in leather) to drive domestic investment and job creation. 
  • Reform Fiscal Policy: Raise the tax-to-GDP ratio up to 15% by simplifying tax rates, phasing out exemptions and broadening the base.  
    • Launch strategic disinvestment to reduce debt and interest payments (currently 25% of revenue), and redirect funds to growth-oriented social sectors like infrastructure, education, and healthcare. 
  • Expand Exports & Trade Access: Strengthen trade agreements with the EU, US, and UK, eliminate non-tariff barriers like Quality Control Orders (QCOs) and align standards with global practices.  
    • Encourage export-oriented FDI (such as in textiles, electronics, food processing, and automotive components) to improve competitiveness, facilitate technology and quality upgrades, and increase India's export-to-GDP ratio with a target of at least 25%.

What Measures can India Adopt to Sustain Resilient Economic Growth Amid Rising Global Uncertainties? 

Click Here to Read: Measures for India to Sustain Resilient Economic Growth 

Conclusion 

A policy mix of targeted investment incentives, trade and tax reforms, and prudent fiscal management can help India break out of the 6% growth trap. Achieving sustained 8%+ growth is essential not only for poverty reduction but for enabling large sections of the population to enter the middle class.

Drishti Mains Question:

What are the key challenges hindering India's economic growth, and what strategic measures should be adopted to achieve a sustained higher growth rate?

UPSC Civil Services Examination, Previous Year Questions (PYQs)  

Prelims

Q. India’s ranking in the ‘Ease of Doing Business Index’ is sometimes seen in the news. Which of the following has declared that ranking? (2016)

(a) Organization for Economic Cooperation and Development (OECD)  
(b) World Economic Forum  
(c) World Bank  
(d) World Trade Organization (WTO)  

Ans: (c) 

Q. Increase in absolute and per capita real GNP do not connote a higher level of economic development, if: (2018)

(a) Industrial output fails to keep pace with agricultural output.  

(b) Agricultural output fails to keep pace with industrial output.  

(c) Poverty and unemployment increase.  

(d) Imports grow faster than exports.  

Ans: (c)  

Q. In a given year in India, official poverty lines are higher in some States than in others because: (2019)

(a) Poverty rates vary from State to State  

(b) Price levels vary from State to State  

(c) Gross State Product varies from State to State  

(d) Quality of public distribution varies from State to State  

Ans: (b) 


Mains 

Q.1 “Industrial growth rate has lagged behind in the overall growth of Gross-Domestic-Product(GDP) in the post-reform period” Give reasons. How far the recent changes in Industrial Policy capable of increasing the industrial growth rate? (2017)  

Q.2 Normally countries shift from agriculture to industry and then later to services, but India shifted directly from agriculture to services. What are the reasons for the huge growth of services vis-a-vis the industry in the country? Can India become a developed country without a strong industrial base? (2014)


Impact of Social Media on Young People

For Prelims: Deepfake, National Digital Literacy Program, DPDP Act 2023, Gig Workers, Digital Economy.     

For Mains: Social Media and its impacts, concerns and way forward 

Source: TH 

Why in News? 

The rise of social media has brought to light the growing concerns over its impact on youth identity and mental health. As young people’s sense of self becomes increasingly linked to online validation, issues like anxiety and distorted self-image are on the rise, prompting a need for reflection on its role in shaping lives. 

What is the Significance of Social Media? 

Social_Media

  •  Impact on Indian Society: Social media challenges traditional media monopolies by allowing citizens to share real-time news and opinions, holding authorities accountable as seen during Covid-19  when doctors used Twitter to highlight oxygen shortages. 
    • Governments and politicians use social media for direct public engagement, policy announcements, grievance redressal, and political promotion, as observed during the Lok Sabha elections 2024 in India. 
    • Social media amplifies marginalized voices, fueling movements like the  MeTooIndia (2018) campaign where women exposed harassment across sectors. 
  • Social Media Impact on Indian Economy:  Social media drives India’s digital economy, supporting small businesses, startups, gig workers, and influencers. For example, home chefs, artisans, and influencers use platforms like WhatsApp catalogs to sell products. 
    • The creator economy, led by YouTube and Instagram influencers, grew from 962,000 in 2020 to 4.06 million in 2024, now supporting 8% of the workforce. 
    • India's creative economy, valued at USD 30 billion in 2024, and contributes 2.5% to GDP. 
      • Following WAVES 2025, the government launched a USD 1 billion fund to support creators with capital, skill development, and global access. 
    • Social media supports startups, crowdfunding, and economic diversification, fueling the e-commerce boom.  
      • For example, Patanjali and boAt gained global visibility through strategic marketing.  
    • It also promotes digital payments and the formalization of the economy, as seen with WhatsApp Pay simplifying transactions. 

How is Social Media Regulated in India? 

  • Laws Governing Social Media in India:  
    • Information Technology Act, 2000: It is the principal law for electronic governance and communication, including social media. 
      • Section 79(1) grants intermediaries (like social media platforms) liability exemption for third-party content, provided they only offer access and don’t control or alter the content. 
    • Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021: It requires social media platforms to ensure online safety by removing inappropriate content and educating users on privacy, copyright, defamation, and national security.  
      • The 2023 Amendment requires online intermediaries like Facebook to remove false content about the Indian government, but the Supreme Court recently paused its implementation. 
  • Judicial Stand: 
    • Shreya Singhal v. Union of India (2015): Section 66A of the Information Technology Act, 2000 was struck down by the Supreme Court for being vague, upholding freedom of expression on social media and ruling that criticism, satire, or dissent can't be criminalized for hurting feelings unless it falls under the reasonable restrictions listed in Article 19(2) 
    • K.S. Puttaswamy v. Union of India (2017): It declared privacy a fundamental right under Article 21 of the Constitution, influencing the push for data protection laws like the Digital Personal Data Protection Act, 2023 (DPDP Act), and WhatsApp privacy and Aadhaar norms. 

What Concerns are Associated with Social Media? 

  • Mental Health Deterioration: Mental health risks from social media include anxiety, depression, and loneliness, fueled by the pressure for constant validation, Fear of Missing Out (FOMO), and comparisons to idealized lives.  
    • The performance culture suppresses real emotions, making it harder for young people to express vulnerability and seek help. 
  • Ethical Concerns: Social media distorts identity, especially among youth, by encouraging curated self-presentation for public approval 
    • Instead of developing an authentic sense of self in private, young users often shape their identities around what gains likes and followers. This constant need for validation blurs the line between who they truly are and who they present themselves to be, leading to confusion, anxiety, and emotional distress. 
    • This, coupled with filter bubbles, leads to users being exposed to more extreme views, reinforcing negative behaviors and limiting diverse perspectives. 
      • Filter bubbles occur when algorithms show content based on a user’s preferences, limiting exposure to diverse viewpoints and reinforcing existing beliefs. 
  • Parental Disconnect: Most adults lack the tools or awareness to understand the digital ecosystem their children navigate. 
    • Teens create fake Instagram accounts to hide their activity from parents, and which can make them more secretive and disconnected. 
  • Child Exploitation: Children (child influencers) are being used by adults to generate content and income, exposing them to external validation, adult scrutiny, performance pressure, and identity confusion before they reach emotional maturity. 
  • Cyberbullying or Trolling: Cyberbullying and exploitation involve anonymous harassment, hate comments, deepfake abuse, and child grooming, where predators target young influencers. 
  • Ethical Concerns: Social media is addictive, using features like endless scrolling and notifications, with business models focused on engagement rather than user well-being.
    • Many social media users unknowingly consent to data collection, often unaware of how their information is used, leading to concerns over privacy violations, data breaches, and unauthorized sharing for advertising purposes.
    • Influencer marketing often misleads users, especially youth, as some influencers promote non-legit products like online betting and fantasy gaming apps without clearly disclosing paid partnerships. 
      • This can lead to financial losses, burdening poor and middle-income families.

What Measures can Address the Challenges of Social Media for Young People?

  • Social Media Policy for Youth Protection: Social media platforms must modify recommendation algorithms to prioritize educational, skill-based, and positive content for users under 18. 
    • Prohibit behavioral profiling of minors for targeted ads (e.g., Meta’s restriction on ad targeting for under-18 users). 
    • Additionally, users should be granted the ability to modify the algorithmic content they receive, enabling them to customize their social media experience for privacy and personal preferences. 
  • Enforce Ethical Design Standards: Platforms should be prohibited from amplifying harmful content, such as sexual, violent, or adult material, including gambling, abusive, or exploitative content, and instead prioritize ethical human learning. 
  • Digital Literacy: National Digital Literacy Program should integrate cyber safety courses in school curricula (NEP 2020 alignment).  
    • Train teachers and parents on identifying online risks 
  • Strengthen Governance & Accountability: The DPDP Act, 2023 should be enforced to penalize platforms misusing children’s data, with third-party audits to review compliance with youth safety norms.  
    • Additionally, faster resolution mechanisms should be established for handling cyberbullying and harassment complaints. 
  • Empower Parents & Society: Promote parental control tools like Google Family Link and Apple Screen Time, and collaborate with NGOs and schools to raise awareness about healthy social media use.  
    • Social media platforms can also introduce features like Teen Accounts, designed to enhance safety and provide a more age-appropriate experience for users under 16. 
    • Additionally, revive sports, arts, and outdoor activities in schools to encourage offline engagement. 
  • Promoting Mental Health Awareness: Social media platforms, like Facebook and Instagram, can implement tools such as screen time reminders, content filters, and well-being resources, while enhancing and campaigning initiatives like the Kiran Helpline, and the MANAS Mobile App to provide additional mental health support. 

Conclusion 

The growing influence of social media on youth demands urgent regulation, digital literacy, and ethical platform design. While it offers opportunities for expression and innovation, unchecked use harms mental health and identity. A collaborative approach involving policy, education, and parental engagement is vital to ensure safe and meaningful digital experiences. 

Drishti Mains Question:

Q. Social media is both a tool for empowerment and a threat to mental health. Examine

UPSC Civil Services Examination Previous Year Question: 

Mains

Q. What are social networking sites and what security implications do these sites present? (2013)

Q. Child cuddling is now being replaced by mobile phones. Discuss its impact on the socialization of children. (2023) 


Digital Banking Units: Progress & Challenges

For Prelims: Digital Banking Units (DBUs), Financial Inclusion, Pradhan Mantri Jan Dhan Yojana (PMJDY), Unified Payments Interface (UPI), Direct Benefit Transfers(DBT), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Atal Pension Yojana (APY), Payment banks, Small Finance Banks, Reserve Bank of India (RBI) 

For Mains: Significance of Financial Inclusion for Inclusive Growth and Upliftment of Vulnerable Sections, Challenges Related to Digital Banking Units (DBUs), Measures to Make DBUs more Effective. 

Source: BL 

Why in News? 

Digital Banking Units (DBUs), launched in 2022 to extend digital financial services to the remotest parts of the country, have seen limited expansion due to challenges like high operational costs, low digital adoption etc. raising questions about their effectiveness and long-term sustainability. 

What is a Digital Banking Units (DBUs)? 

  • About: A DBUs is a specialised fixed point business unit or hub, housing a certain minimum digital infrastructure for delivering digital banking products entirely through self-service, anytime. 
    • They were launched in 2022, across 75 remote districts of India, commemorating India’s 75th year of Independence. 
    • DBUs are set up by scheduled commercial banks (SCBs) (excluding Regional Rural Banks (RRBs), payment banks, and local area banks) with digital banking experience, without prior Reserve Bank of India (RBI) approval in Tier 1 to Tier 6 centres, except where specifically restricted. 
  • Benefits: It aims to boost financial inclusion by enhancing access to digital banking for underserved and unbanked populations. 
  • Services Offered: ATMs, cash deposit machines, passbook and internet kiosks, bill payments, and account opening via e- KYC (Know Your Customer) 
  • RBI Mandate for DBUs: The RBI mandates that DBUs must be physically separate from existing branches, with distinct entry and exit points.  
    • They should be designed to serve digital users, featuring advanced technologies like Interactive Teller Machines, Service Terminals, and Cash Recyclers. 
    • Additionally, each DBU must be overseen by a senior, experienced executive. 

Difference Between Digital Banks and DBUs 

  • Digital banks are licensed under the Banking Regulation Act, 1949, with a balance sheet and legal personality, promoting innovation and competition.  
    • DBUs are extensions of traditional banks, offering digital services within the bank's regulations, with limited scope for competition and innovation. 
  • Digital Banks offer a broader range of banking services, including deposits, loans, and other financial products, all digitally. 
    • DBUs focus on delivering digital banking products and services in a specific location but do not offer full-fledged banking services like digital banks. 

What are the Challenges Faced by Digital Banking Units (DBUs)? 

  • Ineffective Planning:  At the time of implementation of DBUs, banks were given just 45 days to set them up at centrally chosen locations, without considering local needs, digital readiness, or regional differences in demand and banking habits, which impacted the initiative's effectiveness. 
  • High Operational Costs: RBI requires DBUs to be separate from branches with costly infrastructure like interactive teller machines and video KYC. In low-traffic areas, high costs deter banks from expanding DBUs. 
  • Low Digital & Financial Literacy: Limited digital skills, especially among senior citizens, and the lack of cash counters in tier-II, tier-III towns, and rural areas hinder DBU effectiveness, limiting financial inclusion. 
  • Connectivity & Strategic Integration Issues: Remote areas lack stable internet and power, disrupting DBU operations. 

What Steps Should be Taken to Enhance the Effectiveness of Digital Banking Units? 

  • Decentralised, Demand-Based Expansion:  Instead of a top-down rollout, DBUs should be established based on local demand, digital literacy levels, and banking penetration 
    • A decentralised, data-driven model can ensure sustainability and avoid underutilisation. 
  • Strengthening Digital Literacy Programs: Leverage the Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA), aimed at digitally empowering rural citizens, to improve digital literacy in areas with low engagement. 
    • Banks should collaborate with local governments and community organizations to conduct training sessions for citizens, especially senior citizens and women, on using digital services effectively. 
  • Infrastructure Support: Invest in improved connectivity infrastructure, especially in remote and underserved areas.  
    • The BharatNet Project can play a crucial role in ensuring that stable internet access is available to remote areas. 
    • Establish backup power solutions like solar power to mitigate frequent power outages that affect DBU operations. 
  • Enhancing Customer Support: DBUs should include human support for digital onboarding, problem resolution, and financial advice to enhance customer engagement. 
    • Additionally, offering multilingual interfaces  and local language assistance can improve comfort and accessibility in diverse regions. 
  • Focus on Financial Products and Services: DBUs should ensure easy access to Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), and Atal Pension Yojana (APY), particularly in rural areas where insurance penetration is low. 

Financial_Inclusion

Drishti Mains Question:

Q. What are Digital Banking Units (DBUs)? Discuss the challenges in implementing them and suggest measures to optimize their effectiveness in rural areas. 

UPSC Civil Services Examination Previous Year Question (PYQ) 

Prelims:

Q. With reference to India, consider the following: (2010)

  1. Nationalization of Banks
  2. Formation of Regional Rural Banks
  3. Adoption of village by Bank Branches

Which of the above can be considered as steps taken to achieve the “financial inclusion” in India? 

(a) 1 and 2 only 

(b) 2 and 3 only 

(c) 3 only 

(d) 1, 2 and 3 

Ans: (d) 

Mains

Q. Pradhan Mantri Jan Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion.


China’s Export Restrictions on Critical Minerals

Source: TH 

Why in News? 

India is engaging with China over export restrictions on germanium, a critical mineral vital for semiconductors.  

  • China, which produces over half of the world's germanium, has restricted exports of this critical mineral, impacting industries in India that depend on imports. 
  • These export restrictions are part of China’s strategy to protect national security, retaliate against U.S. tariffs, and strengthen its control over global supply chains. 

About Germanium 

  • About; It is a lustrous, hard, silvery-white semi-metal with a crystal structure resembling that of diamond.  
  • Application: It is widely used in electronics and optics, especially in fiber-optic cables, infrared imaging devices, and fiber-optic preforms, which are crucial for internet infrastructure. 
    • It is also used in solar cells due to its heat resistance and higher energy conversion efficiency. 
  • Global Production: China is the world's largest producer and exporter of germanium, accounting for 60% of global germanium production. 

Germanium 

What are Critical Minerals? 

  • About: Critical minerals, such as copper, lithium, nickel, cobalt and rare earth elements are essential components of many of today’s rapidly growing energy technologies, from wind turbines and electricity networks to electric vehicles. 
    • India has identified 30 critical minerals, including Antimony, Beryllium, Bismuth, Cobalt, and Germanium. 
    • China dominates the global processing of several critical minerals, including rare earths, controlling an estimated 80–90% of processing capacity. 

Dominance_of_China_in_Critical_Minerals

  • Significance for India: They are vital to renewable energy technologies that will be required to meet the “Net Zero” commitments of the countries around the world. 
  • India’s Dependence: India is heavily dependent on imports for critical minerals, particularly from China.  
    • These minerals, including bismuth, lithium, and silicon, are essential for industries such as pharmaceuticals, semiconductors, and aerospace. 

India_Dependence_On_Critical_Minerals 

What are the Major Applications and Availability of Critical Minerals in India?

S. No. 

Critical Minerals 

Major Applications 

Availability in India 

1 

Cadmium 

Manufacture of electrical equipment, Chemical products, Solar cells, Electroplating, and Silver soldering 

Cadmium is recovered as a by-product during zinc smelting and refining. 

2 

Cobalt 

Electric Vehicles (EVs), Batteries, corrosion resistant alloys, Aerospace applications, Pigments and Dyes, Organic and inorganic chemical compounds. 

Not available.Current requirements are made through imports. 

3 

Copper 

Electrical and electronics products, Electrical Wiring, Solar Panel, Automotive industry. 

Current copper concentrate production meets only 4% of the demand for copper smelters and refineries, requiring substantial imports. 

4 

Gallium 

Semiconductors, Integrated Circuits, LEDs, Specialized thermometers, Barometric sensors. 

Gallium is recovered as a by-product while producing alumina. 

Two plants, namely, HINDALCO at Renukoot, Uttar Pradesh and NALCO Damanjodi alumina refinery, Odisha, had recovered Gallium in the past. 

5 

Germanium 

Optical fibers, Satellites, Solar cells, Infrared night vision systems. 

Not available. 

Current requirements are made through imports. 

6 

Graphite 

Batteries, Lubricants, Fuel cells for EVs, Electric Vehicle 

9 million tonnes reserves exist. 

7 

Lithium 

Electric Vehicle, Rechargeable batteries, Glassware, Ceramics, Fuel manufacturing, Lubricant. 

lithium-inferred resources of 5.9 million tonnes in the Salal-Haimana area of the Reasi district in J&K. 

8 

Nickel 

Stainless steel, Solar panels, Batteries, Aerospace, Defence applications and Electric Vehicle. 

Vedanta has a nickel and cobalt plant at Goa named NICOMET. 

9 

Rare Earth Elements (REE) 

Permanent magnets, Catalyst, Polishing, Batteries, Electronics, Defence technologies, Wind energy sector, Aviation and Space 

The resource estimate of Monazite from beach sand in India is 11.93 Mt having 55%-65% of rare earth oxides. 

10 

Silicon 

Semiconductors, Electronics and transport equipment, Paints, Aluminum alloys 

India reported production of 59000 metric tonnes of silicon and ranks 12th in production as per 2022 data. 

UPSC Civil Services Examination, Previous Year Questions (PYQs) 

Q. Recently, there has been a concern over the short supply of a group of elements called ‘rare earth metals’. Why? (2012)

  1. China, which is the largest producer of these elements, has imposed some restrictions on their export. 
  2. Other than China, Australia, Canada and Chile, these elements are not found in any country. 
  3. Rare earth metals are essential for the manufacture of various kinds of electronic items and there is a growing demand for these elements. 

Which of the statements given above is/are correct? 

(a) 1 only 
(b) 2 and 3 only 
(c) 1 and 3 only 
(d) 1, 2 and 3 

Ans: (c)


Indore Declared India's First Beggar-Free City

Source: ET 

Indore, Madhya Pradesh, has been declared India’s first beggar-free city under the Ministry of Social Justice and Empowerment’s Bhiksha Vriti Mukta Bharat (begging-free India) initiative. 

  • The achievement, also recognised by the World Bank, follows sustained rehabilitation efforts under the “Comprehensive Rehabilitation of Persons Engaged in the Act of Begging", a sub-scheme of SMILE scheme. 

Begging

  • About: Begging involves soliciting alms through various acts like singing, selling items, or displaying deformities.  
  • Status: Census 2011 reports 4.13 lakh beggars in India, with the highest numbers in Uttar Pradesh, Bihar, Maharashtra, and Madhya Pradesh. SECC 2011 estimates 6.62 lakh rural households depend on begging.  
  • Constitutional Basis: Vagrancy (includes beggary) is in the Concurrent List (Entry 15, List III), where both Centre and states can legislate. 
  • No Central Law: India lacks a uniform central law on begging, and Bombay Prevention of Begging Act, 1959, acts as a main law which criminalizes begging and defines beggars broadly. 

SMILE Scheme: Rehabilitation of Persons Engaged in Begging 

  • About: Launched in 2022, the SMILE scheme includes 2 sub-schemes: Rehabilitation of Persons Engaged in Begging and Empowerment of Transgender Persons.  
    • The beggary sub-scheme focuses on identifying, profiling, and rehabilitating individuals engaged in begging, with their consent, in urban areas like religious, historical, and tourist cities.  
    • The goal is to rehabilitate at least 8,000 individuals from FY 2023–24 to FY 2025–26. 
  • Rehabilitation Strategy: It involves coordination with local bodies for identification, outreach, and resettlement, with empathetic engagement and profiling through photo/video documentation. 
    • District administrations, NGOs, SHGs, and Temple Trusts provide services like counselling, education, and reintegration support. 
Read More: Ban on Begging, Building An Inclusive Society Through SMILE. 

Wadge Bank

Source: TH 

Fishermen in Kanyakumari oppose the Union government’s proposed hydrocarbon exploration project at Wadge Bank under Hydrocarbon Exploration and Licensing Policy (HELP), fearing it will harm their livelihoods and the ecologically sensitive marine area. 

Wadge Bank 

  • Wadge Bank is a submarine plateau in the Indian Ocean, located 80 km off Kanyakumari (Cape Comorin), lying in India’s Exclusive Economic Zone (EEZ) 
    • A bank is a shallow elevation on the continental shelf, usually less than 200 meters deep, formed of continental origin. 
  • It is known for its rich marine biodiversity and abundant fishery resources.  
  • The 1976 India-Sri Lanka Maritime Boundary Agreement grants India sovereign rights over Wadge Bank, including the right to explore petroleum and minerals, while Sri Lankan fishermen are prohibited from fishing in the area. 
  • It  is one of the world's richest fishing grounds, with high organic productivity, serving as a key feeding and breeding ground for fish 
  • Wadge Bank  peak fishing season is from July to October, boosted by seasonal upwelling that enhances nutrient availability. 

Wadge_Bank 

Hydrocarbons 

  • Hydrocarbons are organic compounds (made of carbon & hydrogen) that form the basis of fossil fuels like coal, petroleum, and natural gas.  

HELP

Read More: Katchatheevu Island, Hydrocarbons Exploration and Extraction 

Semi Cryogenic Engine

Source: ISRO 

Indian Space Research Organisation (ISRO) successfully conducted a short-duration hot test of its semi cryogenic engine at the ISRO Propulsion Complex (IPRC), Mahendragiri.  

  • A short-duration hot test involves briefly firing the engine using actual fuel to verify its ignition and performance under real operating conditions. This test marks the 2nd milestone, following the first successful hot test conducted in March 2025. 
  • Semi Cryogenic Engine: It is a liquid rocket engine that uses liquid oxygen (LOX) as an oxidizer and refined kerosene (RP-1) as fuel.  
    • Designed to power the booster stages of future heavy-lift launch vehicles, semi-cryogenic engine's LOX-kerosene combination offers higher density impulse than cryogenic systems, enhancing propulsion performance. 
    • Additionally, kerosene is cheaper and easier to handle than liquid hydrogen, reducing costs and simplifying operations. 
    • The successful development of this semi-cryogenic engine will boost ISRO’s payload capacity and support future launch vehicles like the  Next Generation Launch Vehicle (NGLV). 
  • NGLV : It is a cost-efficient, reusable heavy-lift rocket being developed by ISRO, designed to carry up to 30 tonnes to Low Earth Orbit, with a reusable first stage. 
    • It features a 3-stage design with LOX engines for the first two stages and a cryogenic upper stage. 
    • NGLV aims to support communication satellite launches, deep space missions, and future human spaceflight and cargo missions. 

Cryogenic_Vs_Semi-Cryogenic_Engines

Read More: 3D Printed Cryogenic Engine and Space Sector PrivatisationNISAR Satellite. 

Asteroid 2024 YR4

Source: TH

The National Aeronautics and Space Administration (NASA) has updated its assessment of Asteroid 2024 YR4, initially considered a potential Earth threat, now indicating a 3.8% chance of it colliding with the Moon on December 22, 2032. 

  • This collision with the Moon could result in the formation of a large crater and pose a significant risk to lunar missions. 
  • Asteroid 2024 YR4: It was first discovered in December 2024, by the Asteroid Terrestrial-impact Last Alert System (ATLAS) telescope in Chile. 
    • It is a Near-Earth asteroid (NEA) with an orbit that brings it within 1.3 Astronomical Units (1 AU is the average distance from Earth to the Sun) of Earth. 
    • It is estimated to be 53-67 meters wide, about the size of a 15-story building. 

Asteroid:

  • About: Asteroids are rocky, airless remnants from the early solar system, formed about 4.6 billion years ago 
  • Location & Size: Mostly found in the Asteroid Belt between Mars and Jupiter, some also follow Earth-crossing orbits. They range in size from a few meters to hundreds of kilometers. 
  • Classification: They are classified as Main Belt (between Mars and Jupiter), Trojans (sharing a planet’s orbit at Lagrangian points), and Near-Earth Asteroids (whose orbits bring them close to or intersect Earth’s path). 
  • Initiatives Related to Monitoring of Near-Earth Objects:  

Celestial_Bodies

Read More: Asteroid 2024 YR4, Double Asteroid Redirection Test (DART) Mission

Kendu Leaf

Source: DTE 

Villages of Odisha, are awaiting government deregulation on kendu (Tendu) leaves to manage their trade independently under the Forest Rights Act (FRA), 2006. 

  • Odisha is India’s 3rd-largest kendu leaf producer after Madhya Pradesh and Chhattisgarh, contributing around 4.5–5 lakh quintals annually, nearly 20% of national output. 

Kendu Leaf 

  • Botanical Name: Diospyros melanoxylon (leaves) 
  • Common Use: Wrapper for beedis (local hand-rolled cigarettes) 
  • Economic Significance: Kendu leaf, a nationalised product like bamboo and sal seed, is a major Non-Timber Forest Produce (NTFP), often called “green gold” and a key income source for tribals, women, and widows. 
  • Legal Status: Covered under Minor Forest Produce (MFP) as per FRA, 2006 

Forest Rights Act (FRA), 2006  

  • The FRA, 2006 recognizes and grants forest rights to forest-dwelling Scheduled Tribes and Other Traditional Forest Dwellers  lacking formal land titles despite generations of residence. 
    • It grants individual rights over cultivated land, MFP rights to collect and sell non-timber produce, community rights over traditional forest use, habitat rights for PVTGs, and Community Forest Resource (CFR) rights to manage and conserve forests. Gram Sabha approval is mandatory for diversion of forest land. 
  • The FRA overrides conflicting state laws like the Odisha Kendu Leaf (Control of Trade) Act. 

Kendu_Leaves

Read More: Tribal Ministry’s Directive on Forest Right Act, 2006.