Evolution of India's Space Program

Source: IE 

Why in News? 

The Global Space Exploration Summit (GLEX) 2025, held in New Delhi under the theme “Reaching New Worlds: A Space Exploration Renaissance.” The Prime Minister emphasized that India’s space programme goes beyond scientific discovery—serving as a tool to empower citizens and drive economic and social development. 

• In another development, the European Space Agency (ESA) emphasised on  collaboration with India and is open to working together on larger and uncharted areas of space exploration. 

How does India's Space Program Evolve Overtime? 

• Humble Beginnings (1960s–1970s): In 1963, the first sounding rocket (US made Nike-Apache) was launched from the Thumba in Kerala, focusing on basic atmospheric studies and establishing foundational infrastructure. 
• Building Indigenous Capabilities (1980s–1990s): India developed the SLV (Satellite Launch Vehicle) and INSAT series for communication and weather monitoring, along with the IRS (Indian Remote Sensing satellites) to support agriculture, water management, and disaster response.  
  • The early focus was on self-reliance and development-driven space technology. 

• Entering the Global Arena (2000s–2010s): In 2008, India launched Chandrayaan-1, its 1st lunar mission and became successful in first attempt ahead of several global powers (e.g., US Pioneer and USSR Luna: Both were launch failure in 1958), and helped discover water molecules on the Moon.  
  • In 2014, Mangalyaan (Mars Orbiter Mission) made India the 1st country to reach Mars on its first attempt.  
  • In 2023, Chandrayaan-3 landed near the Moon’s South Pole, and in 2024, India successfully docked two satellites in orbit under  the SpaDeX mission. 
• Global Outreach (2010s–2020s): In 2017, India launched 104 satellites using PSLV-C37 in a single mission.  
  • India offered launch services to 34 countries, boosting its global space role, with initiatives like the South Asia Satellite and upcoming G20 Satellite Mission. 
• Future Ambitions (2020s–2040s): The Gaganyaan mission is under development to send Indian astronauts into space, with planned missions to the Moon (2040), Mars, and Venus.  
  • The Bharatiya Antariksh Station (possibly by 2035) will enable permanent research in low Earth orbit. 
• Rise of the Private Sector: Over 250 space startups now exist, driving innovation in propulsion systems and imaging and satellite technology. E.g.,  
  • Skyroot Aerospace launched Vikram-S (India’s first private rocket) in 2022. 
  • Agnikul Cosmos inaugurated India’s first private space launch pad at Sriharikota in 2022. 

How India’s Space Programme Promote Economic and Social Development?  

• Public Service Delivery: ISRO’s satellite data supports schemes like SVAMITVA, which provides rural landowners with property cards, reducing disputes and boosting credit access. 
  • It also aids e-KYC via Aadhaar (linked to ISRO’s geospatial data) to ensure targeted delivery of subsidies like LPG and MNREGA wages. 
• Agriculture & Food Security: ISRO’s FASAL (Forecasting Agricultural Output using Space, Agro-meteorology & Land-based observations) program uses satellite data to predict crop yields, reducing price volatility and aiding food distribution.  
  • Bhuvan-Krishi provides soil maps for precision farming. 
  • Resourcesat-2 helps in monitoring disasters like locust attack by observing changes in vegetation health.  
• Disaster Management: Satellites like INSAT-3D/3DR track cyclones, enabling timely evacuations.  
  • For flood and drought monitoring, the National Agricultural Drought Assessment and Monitoring System (NADAMS) system uses satellite data to assess drought conditions and guide relief fund allocation. 
• Bridging the Digital Divide: GSAT satellites provide broadband connectivity to remote and tribal areas, enhancing access to education, telemedicine, and e-governance services in underserved regions. 
• National Security: The GSAT-7 series supports communication for the Indian Armed Forces, while Cartosat satellites assist in border surveillance, enhancing defense preparedness and national sovereignty. 
  • NavIC (Navigation with Indian Constellation) provides encrypted signals and data for precision-guided weapons for military platforms (aircraft, ships, missiles, and ground forces). 

What are Key Issues Related to India's Space Sector? 

• Budgetary Constraints: India allocates just 0.04% of its GDP to space, significantly lower than the 0.28% spent by the US.  
  • With ISRO’s budget at USD 1.95 billion compared to NASA’s USD 25 billion, India faces limitations in funding large-scale projects, infrastructure, and R&D investments. 
  • E.g., Reusable Launch Vehicle (RLV-TD) tests were delayed due to limited funds. 
• Import Dependencies: India’s space program faces persistent reliance on imports for advanced sensors, and semiconductors.  
  • Indigenous innovation is slow and underfunded, as evidenced by the delayed development of the cryogenic CE-20 engine. 
• Growing Space Debris: India lacks effective debris mitigation strategies, with over 114 Indian-origin objects classified as space debris in orbit. 
• Security Vulnerabilities: India lacks space-based early warning systems against hostile countries posing threat to India’s space assets, integrated surveillance, and robust ASAT capabilities.  
  • Its military use of space remains limited, especially when compared to the dual-use dominance of China and the US. 
• Drain of Skilled Workforce: India faces a significant outflow of talent due to better infrastructure and opportunities abroad.  
  • While top Indian-origin scientists contribute to global missions, India struggles with STEM retention. 
• Limited Commercial Presence: India’s share in the global space economy is only 2–3%, despite having cost-effective and reliable launch systems like PSLV.  
  • Commercialization and contract acquisition lag behind competitors like SpaceX. 
• Geopolitical Competition: China’s rapid advancements, such as the Tiangong Space Station and BeiDou, overshadow India’s regional influence.  
  • Additionally, India’s lack of space diplomacy and dual-use tech strategies puts it at a disadvantage in the global space race. 

What Measures can India Adopt to Strengthen its Space-Based Capabilities? 

• Diversify Funding Mechanisms: India can attract long-term investments through sovereign space bonds and public-private co-financing models.  
  • Additionally, establishing an Indian Space Fund under IN-SPACe can support R&D, startups, and innovation, strengthening the domestic space ecosystem. 
• Indigenous Technology Development: India should create Space Technology Innovation Hubs to develop key technologies like reusable rockets and AI for satellites to reduce reliance on foreign technology and ensure strategic autonomy. 
• Talent Retention: India should introduce specialized space education programs, set up space training academies, and offer research fellowships and career pathways to retain top talent. 
• Space Sustainability: India should invest in Space Situational Awareness (SSA) technologies and de-orbiting solutions to manage space debris, alongside launching a National Space Sustainability Plan focused on reducing debris and promoting sustainable space exploration. 
• Advance International Collaborations: India should strengthen cooperation with global space agencies like NASA, ESA, and Roscosmos for technology sharing on missions like Artemis and planetary defense.  
  • Additionally, partnerships with emerging space nations in Africa and Southeast Asia will enhance capacity-building and space diplomacy. 
• Space-Based Entrepreneurship: India should create a National Space Innovation Framework to support startups and MSMEs in satellite manufacturing, data analytics, and payload development.  
  • Additionally, hackathons and innovation challenges should be launched to foster youth-driven ideas for disruptive space solutions. 

Conclusion 

India’s space program has evolved significantly, progressing from humble beginnings to a global player in space exploration. However, challenges like budget constraints, import dependencies, and geopolitical competition persist. By focusing on indigenous technology, talent retention, and international collaborations, India can strengthen its space-based capabilities for sustained growth and economic development. 

Drishti Mains Question: Q. India's space program has evolved from basic atmospheric research to global space exploration. Discuss the key milestones and the challenges India faces in its space journey.

Growth in CSR Spending

Source: IE 

Why in News? 

The report by PRIME Database (Indian market data firm) reveals a 16% rise in Corporate Social Responsibility (CSR) expenditure by listed companies in FY 2023-24.  

• This can be attributed to improved profitability across sectors and reflects changing priorities in corporate philanthropy and compliance culture. 

What are the Recent Trends in CSR Expenditure? 

• Trends in CSR Spending (FY 2023-24): CSR spending by listed companies rose to Rs 17,967 crore in 2023-24 from Rs 15,524 crore in FY 2022-23, reflecting an overall increase in profits.  
  • HDFC Bank, Reliance Industries, TCS, and ONGC were the top contributors. 
  • About 98% of companies met their CSR obligations, and nearly half went beyond the required spending.  
  • Public sector undertakings (PSUs) also increased their CSR contribution by 19% compared to FY 2022-23. 
• Sectoral Allocation and Shifts: Education received the largest allocation (Rs 1,104 crore), followed by healthcare (Rs 720 crore). 
  • Spending on environmental sustainability rose the most at 54%  indicating a shift towards ESG (Environmental, Social, and Governance) goals, followed by a 5% increase in national heritage.  
    • However, support for areas like slum development, rural development, and welfare of armed forces veterans declined sharply (72%, 59%, and 52% respectively). 
• State-wise Trends: Maharashtra, Rajasthan, and Tamil Nadu were the top three recipients of CSR funds, with the top 10 states accounting for 60% of the total CSR expenditure. 
  • States that saw the highest increase in CSR funds compared to 2022–23 were Tamil Nadu, Maharashtra, and Gujarat, while Rajasthan, Haryana, and Punjab recorded the largest declines in CSR funding. 
• Direct Spends vs Implementing Agencies: In FY 2023–24, 31% of companies spent directly on CSR, 29% used implementing agencies, 38% used both, and 2% didn’t specify the method. 
  • However, most funds (over 50%) were spent through implementing agencies. 

What is Corporate Social Responsibility? 

• About: Corporate Social Responsibility (CSR) refers to a company’s responsibility towards society and the environment.  
  • It is a self-regulating model that ensures businesses remain accountable for their impact on economic, social, and environmental well-being.  
  • By adopting CSR, companies become more aware of their broader role in sustainable development. 

 

• Legal Framework: India is the first country to make CSR spending mandatory under Section 135 of the Companies Act, 2013, providing a structured framework for eligible activities. 
• Applicability: CSR rules apply to companies that, in the preceding financial year, have a net worth exceeding Rs 500 crore, or a turnover over Rs 1,000 crore, or a net profit above Rs 5 crore. 
  • Such companies must spend at least 2% of their average net profit of the last 3 financial years (or available years if newly incorporated) on CSR activities. 
• Types of CSR Initiatives: 
  • Corporate Philanthropy: Charitable donations 
  • Community Volunteering: Organised employee service 
  • Ethical Practices: Producing socially responsible products 
  • Cause Promotion: Supporting social causes 
  • Cause Marketing: Linking sales to donations 
  • Social Marketing: Funding campaigns for public good 
• Eligible Sectors: CSR spending covers areas like eradicating poverty, promoting education and gender equality, fighting diseases like HIV/AIDS, ensuring environmental sustainability, and contributing to government relief funds (Like PM CARES and PM Relief Fund)  for socio-economic development and the welfare of disadvantaged groups. 

What are the Challenges Related to CSR Spending in India?   

• Geographical Disparity in Spending: Spending is concentrated in industrial states like Maharashtra , Rajasthan,  Gujarat, Karnataka, and Tamil Nadu, while North Eastern states (Mizoram, Sikkim) and Lakshadweep, Leh and Ladakh receive comparatively less funding, reflecting a regional imbalance. 
• CSR Allocation Trends: Over 75% of CSR funds were concentrated in key areas like education and vocational skills, hunger, poverty and healthcare, environmental sustainability, rural development and sports. 
  • Sectors related to slum development, disaster management and armed force veterans have very less spending. 
• Implementation Delays and Poor Planning: Implementation delays from late approvals and fund allocation cause companies to favor quick infrastructure over long-term community development.  
  • Lack of strategic vision reduces CSR to charity, while absent long-term policies and duplicated efforts lead to unclear spending and competition instead of collaboration. 
• Monitoring and Evaluation (M&E) Gaps: Current M&E systems focus on quantitative outcomes rather than real social impact.  
  • Lack of standardized methods and inconsistent reporting by third-party evaluators hinder transparency and make comparison between projects difficult. 
• Challenges with NGO Partnerships:  Weak coordination between companies and NGOs limits project planning and execution.  
  • Short-term CSR cycles and restrictions on using funds for NGO reserves affect capacity building. Increasing dependence on intermediaries further reduces efficiency and accountability. 
• Unspent CSR Amount: Despite mandates, 27 companies did not spend on CSR.  
  • Most avoid innovative or high-impact projects, favoring safe, repetitive initiatives, which limits CSR’s potential for sustainable development. 

What Steps can be taken to Strengthen the Impact of CSR Initiatives in India? 

• Simplify and Broaden CSR Regulations: CSR guidelines should be simplified and made more flexible to eliminate regulatory ambiguity, helping companies understand permissible activities better. 
  • The list of eligible CSR activities should be expanded to allow innovation and better alignment with real societal needs. 
• Create a Centralized Platform: A national CSR portal should be developed where companies report their projects, fund usage, and outcomes.  
  • It can also connect corporates with NGOs and government schemes in need of support, improving fund matching and transparency. 
• Audits and Impact Assessment: Mandatory third-party audits for large projects can prevent fund misuse. Companies should also publish impact assessments showing actual results, shifting focus from just spending money to creating meaningful social change. 
• Promote Partnerships & Collaboration: Companies should work with NGOs, local authorities, and other firms for better on-ground execution.  
  • Pooling CSR funds across industries or within sectors can enable larger and more impactful projects, especially in areas like rural healthcare, climate adaptation, and education. 
• Support Long-Term Projects: Incentives like CSR awards can promote creative and effective initiatives.  
  • Policies should encourage long-term projects that address root problems such as education reforms, healthcare systems, and environmental sustainability, rather than short-term events or donations. 
• Capacity Building & Balanced Allocation:  Capacity building in smaller firms can enhance CSR impact. CSR funds should focus on underdeveloped regions and key areas like climate change, women’s empowerment, public health, disaster management, heritage conservation, and slum rehabilitation for balanced, inclusive development. 
• Awards & Recognition: Annual CSR awards can be established for 2 categories of companies-large and small, as recommended by the Anil Baijal Committee (2015). 

Conclusion 

CSR in India has evolved from a voluntary act to a regulated tool for inclusive growth. As corporate profits and public expectations grow, there is a need to make CSR more strategic, transparent, and aligned with national priorities. Revising thresholds and strengthening evaluation mechanisms can shift CSR from mere compliance to a powerful driver of sustainable socio-economic development. 

Drishti Mains Question: Discuss the challenges in effective Corporate Social Responsibility (CSR) implementation and suggest measures to improve its impact on socio-economic development.

Strengthening G20’s Effectiveness

Source: DTE 

Why in News?

The G20, often hailed as the "premier forum for international economic cooperation," faces criticism for its lack of global representation. Its exclusive membership undermines its credibility and effectiveness in addressing global issues. 

• With South Africa chairing the G20 in 2025, there is growing support for reforms to make the forum more inclusive and globally representative. 

What is the Significance of G20? 

• About: The G20 was founded in 1999 after the Asian financial crisis as a forum for the Finance Ministers and Central Bank Governors to discuss global economic and financial issues. 
• Evolution: The G20 was elevated to the leaders’ level after the 2007–08 financial crisis and declared the top forum for global economic cooperation in 2009.  
  • While it began with a focus on macroeconomics, its agenda now covers trade, health, climate change, and more. 
• Membership: Its membership includes 19 national economies and the European Union (EU) and African Union (AU). India became a member of the G20 in the year 1999, when the group was established. 
  • Other countries can be invited as "special guests" on an ad hoc basis. 
• Structure and Governance: The G20 operates under a rotating presidency with annual summits and functions without a permanent secretariat. 
  • The troika system (current, past, and incoming presidents) manages the G20 work, with the 2025 troika consisting of South Africa (current), Brazil (past), and the US (incoming 2026 president). 
• Global Influence: Represents 67% of the global population, 85% of world GDP, and 75% of global trade. 
  • International organizations like the International Monetary Fund (IMF), World Bank, Organisation for Economic Co-operation and Development (OECD), and World Trade Organization (WTO), along with representatives from some UN entities, participate in G20 meetings. 
• Key Outcomes of G20 over the Years: 
  • Global Alliance Against Hunger and Poverty: Launched at the 2024 G20 Summit in Rio de Janeiro, Brazil, the initiative aims to reach 500 million people through cash transfer programs and to provide 150 million school meals to children by 2030. 
  • India-Middle East-Europe Economic Corridor (IMEC): The IMEC, launched during the G20 Summit in New Delhi, seeks to strengthen trade, economic relations, and regional integration between India, the Middle East, and Europe. 
  • Global Biofuels Alliance (GBA): It was launched at the G20 Summit in New Delhi, India, with the goal of promoting adoption of sustainable biofuels. 
  • Global Minimum Corporate Tax: In 2021, at the G20 Summit in Rome, G20 leaders formally endorsed a 15% global minimum corporate tax, aiming to curb tax avoidance by multinationals and foster a fairer global economy. 
  • Digital Economy Action Plan (2017): Enhanced cooperation on digital trade, cybersecurity, and data governance. 
  • Basel III Norms: At the 2010 Seoul Summit, G20 leaders adopted Basel III norms to tighten banking regulations. 
  • Framework for Strong Growth (2009): Coordinated fiscal stimulus and banking reforms post-crisis, stabilizing the financial system. 
    • Debt Service Suspension Initiative (2020) offered debt relief to poor countries during Covid-19, aiding recovery. 
  • Climate Change Action Plan (2010): Promoted low-carbon growth, influencing the 2015 Paris Agreement. 

What are the Limitations of the G20? 

• Lack of Representation: The G20 is a self-selected group comprising 19 countries, the EU, and the African Union, excluding over 90% of the world’s nations, which may participate only as occasional "special guests." 
  • It has no mandate to represent the entire international community (193 UN member states plus non-members). 
  • Non-member countries can only participate if invited as "special guests", making the forum exclusive and unrepresentative. 
• Exclusivity in Decision-Making: The G20’s informal structure and lack of permanent secretariat make it difficult to engage with non-member countries. Its decisions affect the entire world, yet most nations are not directly involved in the deliberations. 
  • Despite ensuring continuity, the troika system lacks enforcement power, making the G20 more of a discussion forum than an action-driven body. 
• Global Challenges Require Global Solutions: Issues such as climate change, pandemics, and economic inequality demand broad global cooperation.  
  • The G20’s narrow membership limits its capacity to form inclusive solutions that reflect the interests of all nations. 
  • Global cooperation is declining as rich nations cut official development assistance (ODA) and major economies favor exclusive G20 forums over inclusive UN platforms.   
  • Wealthy nations dominate the G20, sidelining poorer countries' concerns on aid and climate finance, deepening global inequality. 
• Divergent Priorities: Developed countries prioritize advanced technology, climate transitions, and geopolitical stability, while developing nations focus on poverty alleviation, access to resources, and economic growth.  
  • This disparity in priorities leads to disagreements on issues like climate financing, trade liberalization, and equitable resource allocation.  
• Geopolitical Rivalries: Political tensions between countries like the US and China, or conflicts involving Russia and Israel, create barriers to consensus-building, often shifting focus away from collaborative problem-solving. 

What Reforms can make the G20 more Inclusive and Representative? 

• Regional Consultative Groups: The governance model of the Financial Stability Board(FSB), established under the G20 in 2009, offers a solution for making the G20 more inclusive.  
  • Unlike the G20, the FSB includes Regional Consultative Groups (RCGs) for regions like the Americas, Asia, and Africa, allowing non-member countries to share their perspectives and contribute to decision-making. Each RCG is co-chaired by G20 and non-G20 members.  
  • Adopting this model for the G20 would allow the forum to maintain its core membership while establishing a formal consultation process with regional neighbors, empowering smaller nations and enhancing global representation and accountability. 
• Expand Participation: Grant Permanent Observer Status to non-G20 nations, especially from the Global South, and formalize engagement with regional bodies like Association of Southeast Asian Nations (ASEAN), and Caribbean Community and Common Market (CARICOM) for broader representation.  
  • Rotate Special Guest Invitations systematically to ensure diverse voices in discussions. 
• Improve Institutional Structure: Establish a Permanent Secretariat for continuity and accountability, create Working Groups on critical issues like climate finance, debt relief, and digital economy with mandatory progress reports.  
  • Strengthen the Troika System to monitor policy coherence beyond succession planning. 
• Address Key Global Challenges: Set binding climate funding targets for developed nations and establish a G20 Green Development Fund for vulnerable economies.  
  • Reform the global debt architecture to prevent crises in low-income countries and expand IMF Special Drawing Rights (SDRs) for developing nations. 
• Tackling Global Hunger: Promote Africa and the Global South's priorities like food security and climate adaptation, with initiatives like the Global Hunger and Poverty Alliance tackling food insecurity and sustainable agriculture.

Conclusion 

While the G20 plays a significant role in global economic cooperation, its lack of inclusivity, informal structure, and geopolitical tensions undermine its effectiveness. To strengthen its legitimacy, it must adopt inclusive participation models, establish permanent governance mechanisms, and prioritize actionable solutions for climate finance, debt relief, and food security—ensuring it truly becomes the "premier forum for international economic cooperation." 

Drishti Mains Question: Q. Critically analyze the limitations of the G20 in addressing global economic challenges and suggest measures to strengthen its role in global governance.

National Scheme for Upgradation of ITIs

Source: BS 

The Union Cabinet has approved a Rs 60,000 crore scheme to upgrade 1,000 government Industrial Training Institutes (ITIs) over five years, along with the creation of five National Centres of Excellence (NCOEs) for Skilling. 

• It will be funded by the Centre, states, industries, with ADB and World Bank co-financing 50% of the central share. 
• It focuses on upgrading ITIs under a hub-and-spoke model with industry-relevant trades, and promoting new-age skills among 2 million youth in capital-intensive sectors like automation, AI, and advanced manufacturing. 
• Five National Centres of Excellence for Skilling to be set up in existing National Skill Training Institutes (NSTIs) at Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana to train 50,000 trainers. 
  • NSTIs primarily focus on training trainers; currently, there are 33 NSTIs across India. 
• An industry-led SPV model will drive curriculum planning, infrastructure, and management, marking a shift from government-only control to public-private collaboration. 
• ITIs are vocational training centers that provide training in trades like electrical, mechanical, carpentry, plumbing, and computer technology.  
  • The Directorate General of Training (DGT), under the Ministry of Skill Development and Entrepreneurship (MSDE), is the apex organization for the affiliation and accreditation of ITIs. 

Read More: Restructuring Skill India Programme

Dongria Kondh Tribe

Source: TH 

The Dongria Kondh are a Particularly Vulnerable Tribal Group (PVTG) residing in Odisha’s Niyamgiri Hills and are known for their spiritual bond with nature, and distinct culture. 

• Dongria Kondh Tribe: They worship Niyam Raja, the deity of the hills, and follow practices like Podu (shifting) cultivation 
  • They speak Kui, an ancient Dravidian language, and pass down ancestral wisdom through oral traditions (no script) of songs and dance. 
  • They have a number of sub-tribes, such as the Kovi, Kuttia, Languli, Penga, and Jharnia (protector of streams). 
• Land Rights and Legal Victory: In the 2000s, the tribe strongly opposed Vedanta’s mining operations on their land.  
  • This resistance culminated in a landmark 2013 Supreme Court judgment that upheld the Gram Sabha’s  constitutional right to reject mining projects in their area. 
• PVTG: is a sub-classification of a Scheduled Tribe that is considered more vulnerable than a regular Scheduled Tribe.  
  • India has 75 PVTGs, with the highest number (13) in Odisha, followed by 12 in Andhra Pradesh. 
• Niyamgiri Hill Range: It is located in Kalahandi and Rayagada districts of Odisha, is bordered by Karlapat Wildlife Sanctuary to the northwest and Kotgarh Wildlife Sanctuary to the northeast. 

Read More: Dongria Kondh Tribe

Bond Forwards

Source: BS 

The Reserve Bank of India’s (RBI) norms on bond forwards aim to establish a regulated framework for trading forward contracts in government securities in India. 

• Forward contracts are customized agreements between two parties to buy or sell an asset at a predetermined price on a specified future date. 

Bond Forwards 

• About: Bond forwards are financial contracts in which two parties agree to buy or sell a government bond (central or state) at a future date and pre-fixed price, offering a new tool to manage interest rate risks. 
• Purpose: To help long-term investors (like insurance companies) hedge interest rate risk, improve cash flow planning, and deepen the bond derivatives market. 
  • Unlike unregulated FRAs (Forward Rate Agreements), which offer only cash settlement, bond forwards involve physical delivery of the bond, aligning better with the needs of such investors. 
• Market Impact: Bond forwards are likely to boost demand for 10–15-year State Development Loans (SDLs), which offer higher yields (e.g., 6.71% on SDLs vs. 6.41% on central government bonds), making them attractive for forward contracts. 
• Participants: Residents and non-residents eligible to invest in government securities under the Foreign Exchange Management (Debt Instruments) Regulations, 2019, can participate in bond forward transactions. Additionally, any entity classified as a non-retail user is permitted to undertake such transactions as a user. 
  • Scheduled Commercial Banks (SCB), Primary Dealers (as market makers), and institutional investors like insurance companies can participate, while Small finance banks(SFBs), payment banks, local area banks (LAB), and regional rural banks (RRBs) are excluded.

Read More: Bond Yield

Revised SHAKTI Policy 2025

Source: PIB 

The Cabinet Committee on Economic Affairs (CCEA) approved the revised SHAKTI policy for coal allocation to enhance coal availability, and promote ease of doing business in the power sector. 

• SHAKTI Policy (2017) aims to make coal allocation transparent by moving from a nomination-based system to auction or tariff-based bidding. 
• Key Highlights of the Revised Policy: It introduces two streamlined windows-Window-I and Window-II, replacing eight older categories to enhance the ease of doing business. 
  • Window-I (Coal at Notified Price): Coal will be supplied at fixed prices for government-owned thermal plants, including joint ventures (JVs) and subsidiaries. 
  • Window-II (Premium above Notified Price): Power producers can secure coal through an auction at a premium over the notified price. 
    • Offering them flexibility in selling electricity via long-term (up to 25 years) or short-term (up to 12 months) contracts. 
• Coal: India has the world's 5th largest coal reserves and is the 2nd biggest coal consumer.  
  • Coal remains vital, contributing 55% to India’s energy mix and powering over 74% of electricity generation. 
  • Odisha, Jharkhand, and Chhattisgarh are the top three coal-rich states in India, together holding about 69% of the country’s total coal reserves.

Read More: Coking Coal as Critical Mineral

Gaps in MSME Sector

Source: TH 

The report titled “Understanding the Indian MSME Sector: Progress and Challenges” by the Small Industries Development Bank of India (SIDBI) identifies lack of timely and adequate credit as a primary challenge for Micro, Small and Medium Enterprises (MSMEs) in India. 

• Key Findings: Informal borrowing remains prevalent, with 12% of micro enterprises, 3% of small industries, and 2% of MSMEs overall still relying on informal lending sources. 
  • The MSME sector faces an addressable credit gap of 24%, amounting to nearly Rs 30 lakh crore, with the gap rising to 27% in the services sector and reaching 35% for women-owned MSMEs. 
  • 25% of MSMEs face a skilled manpower shortage, especially in defence, garments, hotels, and sanitaryware sectors. 
• SIDBI: It is a statutory body established under the SIDBI Act, 1989, and serves as the principal financial institution for the promotion, financing, and development of the MSME sector in India. 
  • SIDBI, headquartered in Lucknow, Uttar Pradesh, is a wholly-owned subsidiary of the Government of India. 
• Current Landscape of MSMEs in India: MSMEs now contribute 30.1% to India’s Gross Value Added (GVA) (2022–23), up from 27.3% in 2020–21.  
  • Exports from MSMEs jumped from Rs 3.95 lakh crore (2020–21) to Rs 12.39 lakh crore (2024–25), with their share in total exports rising to 45.79% by 2024. 

Read More: Union Budget 2025-26 Measures to Boost MSMEs