Silver Economy

For Prelims: Silver economy, United Nations Population Fund, Atal Pension Yojana, SACRED Portal  

For Mains: Demographic shifts and their socio-economic impact in India, Silver economy significance, and growth drivers in India.

Source: FE 

Why in News?

World Senior Citizen Day is celebrated every year on 21st August to acknowledge the contributions of senior citizens, raise awareness about the challenges they face globally, and highlight the growing importance of the silver economy.

Note: World Senior Citizen Day began in 1988 when US President Reagan designated 21st August to honor seniors and promote supportive policies. 

• It is different from the International Day of Older Persons. The United Nations General Assembly designated 1st October as the International Day of Older Persons, which was first observed in 1991. 

What is the Silver Economy? 

• About: It refers to all economic activities, goods, and services catering to senior citizens. 
• Importance for India: According to the Technical Group on Population Projections (2020), India’s elderly population will rise from 103.8 million in 2011 (8.6% of the population) to 193.4 million by 2031. 
  • According to the United Nations Population Fund (UNFPA) India’s elderly population is set to double to over 20% by 2050, surpassing children (0–15 years) by 2046. Senior citizens are becoming key economic players, creating opportunities in healthcare, technology, insurance, housing, and wellness. 
• Main Drivers of Silver Economy Growth: 
  • Active Aging: India is moving towards active aging, where senior citizens are healthier, more independent, and seen as contributors rather than dependents. Professionals in the 45-64 age group are currently the wealthiest, making seniors a key consumer class. 
    • Unlike previous generations, they are increasingly participating in the workforce and adding greater value to the economy. 
  • Home Care Services: Over 75% of elderly in India suffer from chronic diseases, creating strong demand for home-based healthcare. 
  • Health Technology: Telehealth, remote monitoring, and wearable devices (fall detectors, GPS trackers, emergency alerts) are transforming elderly care. 
    • The global remote patient monitoring market alone is estimated to grow at a Compound Annual Growth Rate (CAGR) of 12.7% and reach Rs 56.94 billion by 2030. 
  • Ayush-based Services: There is a rising preference for Ayurveda and traditional medicine particularly for preventive care due to their minimal side effects.  
    • With growing demand for holistic health solutions, this sector holds strong potential for future growth. 

What are the Challenges in India’s Silver Economy? 

• Healthcare Gaps: Limited geriatric care facilities, high out-of-pocket expenditure, and low insurance coverage (only ~18% India’s seniors are insured) restrict access to affordable healthcare. 
• Financial Insecurity: A large share of elderly lack pensions or savings, especially in the unorganised sector, leaving them dependent on family support. 
• Digital Divide: Low digital literacy and limited access to technology hinder seniors from benefiting from telemedicine, e-commerce, or digital financial services. 
• Social Isolation: Breakdown of joint family systems, urban migration, and changing family structures increase loneliness and mental health issues among the elderly. 
• Policy and Infrastructure Gaps: Absence of age-friendly infrastructure (housing, transport, public spaces) and limited targeted policies for eldercare slow down growth. 
• Workforce Barriers: Despite active aging potential, age-based stereotypes and lack of flexible work models restrict employment opportunities for seniors. 
• Awareness and Accessibility: Limited awareness about health insurance, Ayush practices, and government schemes prevents seniors from accessing available support systems. 

What Reforms are Needed to Strengthen India’s Silver Economy? 

• Healthcare-Centric Reforms: Expand geriatric care services with a preventive, promotive, curative and rehabilitative focus. Promote health literacy among seniors and caregivers to encourage self-care and early interventions. 
  • Integrate senior care into Ayushman Arogya Mandir (AAM) for comprehensive elderly health coverage. 
• Financial Security Reforms: Design age-specific insurance products to reduce out-of-pocket spending. 
  • Expand pension coverage under Atal Pension Yojana (APY) to protect seniors, especially those from the informal sector. 
  • Promote reskilling and flexible work opportunities under SACRED Portal for the elderly to retain economic independence. 
• Social Inclusion & Support: Promote social engagement and peer-support networks to combat loneliness and mental health issues.  
  • Sensitise communities towards the needs, dignity, and sensitivities of elders. 
• Elder-Friendly Infrastructure & Housing: Develop age-friendly public spaces, housing, and transportation systems. 
• Digital Inclusion Reforms: Launch digital literacy campaigns specifically targeting seniors. Provide user-friendly technology platforms for health, finance, and social services. 
• Economic and Market Reforms: Encourage public–private partnerships under SAGE Programme for developing eldercare infrastructure and services. 
  • Incentivise silver economy startups through targeted funding and incubation support. 
  • Integrate the elderly into mainstream economic activity, both as consumers and contributors. 

Drishti Mains Question: 

The silver economy presents a significant opportunity for India. Discuss the growth drivers and the challenges in harnessing this potential.

 

UPSC Civil Services Examination, Previous Year Questions (PYQs) 

Prelims

Q. Consider the following statements with reference to Indira Gandhi National Old Age Pension Scheme (IGNOAPS): (2008)

1. All persons of 60 years or above belonging to the households below poverty line in rural areas are eligible. 
2. The Central Assistance under this Scheme is at the rate of `300 per month per beneficiary. Under the Scheme, States have been urged to give matching amounts. 

Which of the statements given above is/are correct? 

(a) 1 only 

(b) 2 only 

(c) Both 1 and 2 

(d) Neither 1 nor 2 

Ans: D 

Mains:

Q. Performance of welfare schemes that are implemented for vulnerable sections is not so effective due to the absence of their awareness and active involvement at all stages of the policy process. Discuss. (2019)

SLINEX-25

Source: PIB 

The 12^th edition of the India-Sri Lanka bilateral naval exercise SLINEX-25 concluded successfully in Colombo. 

• They paid tribute at the Indian Peace Keeping Force (IPKF) Memorial, honoring Indian soldiers who sacrificed their lives during 1987–1990 peacekeeping operations in Sri Lanka. 
• The SLINEX bilateral exercises, initiated in 2005, aim to enhance interoperability, mutual understanding, and best practice exchange,  
• It reflects deep India-Sri Lanka maritime cooperation aligned with Mutual and Holistic Advancement for Security Across the Regions (MAHASAGAR) policy. 
• Defence & Security Cooperation: Other India-Sri Lanka bilateral exercise is Exercise Mitra Shakti (Army) held alternately in both countries.  
  • India acts as a 'first responder' for Sri Lanka in the field of Humanitarian Assistance and Disaster Relief. 

Read more: India-Sri Lanka Relations 

Need for a National Space Law in India

For Prelims: National Space Day,  Gaganyaan, Bharat Antariksh Station, Chandrayaan-3, Outer Space Treaty 

For Mains: National Space Policy of India and its implications, Emerging global competition in space exploration

Source:TH 

Why in News?

On 23^rd August, India will observe its second National Space Day, highlighting upcoming missions such as Gaganyaan and the Bharat Antariksh Station.  

• However, while India’s space achievements continue to grow, the absence of a national space law threatens to slow its commercial, innovative, and global ambitions.

National Space Day 

• India celebrated its maiden National Space Day (NSD) on 23rd August 2024, to commemorate the successful soft landing of the Chandrayaan-3 Mission's Vikram Lander and the deployment of the Pragyan Rover on the Moon on 23rd  August 2023.  
• The day showcases India’s space prowess and inspires future generations to pursue STEM. 

Why Does India Need a National Space Law? 

• Operationalise Global Commitments: India is a signatory to the Outer Space Treaty, 1967 and related UN agreements. These treaties establish principles like peaceful use of space, state responsibility for national activities, and liability for damages. 
  • United Nations Office for Outer Space Affairs (UNOOSA) treaties are not self-executing, countries must enact domestic space laws.   
  • The US, Japan, and Luxembourg have laws for licensing, liability, and commercial use. Without one, India risks non-compliance and falling behind globally. 
• Balance Domestic Gaps with Geopolitical Realities: While the Outer Space Treaty has held firm globally, rising tensions among space superpowers (US, Russia, China) threaten space governance. 
  • India must strengthen its domestic legal framework to safeguard its commercial interests, even as international uncertainties persist. 
• Provide Legal Certainty for Industry: Policies (like the Indian Space Policy 2023 and IN-SPACe Guidelines 2024) show intent but lack statutory force. 
  • A national space law would give Indian National Space Promotion and Authorization Center (IN-SPACe) legal authority as the central regulator, streamline licensing, reduce delays, and build investor confidence in India’s space sector. 
• Support Startups and Innovation: Startups face high risks with satellites and launch vehicles but lack affordable insurance. 
  • A law can mandate third-party liability coverage, establish clear frameworks for claims and accident investigations, provide affordable insurance for startups, and enforce strong IP protections to encourage R&D and prevent brain drain. 
• Manage Safety and Sustainability: A comprehensive law can set safety standards, manage space debris, establish accident procedures, and unify satellite frameworks, ensuring responsible space use and protecting India’s credibility. 

Indian Space Policy 2023 

• Objective: Augment space capabilities, encourage private sector participation, drive technology development, and strengthen international cooperation. 
• Delineation of Roles: The policy delineates the roles and responsibilities of Indian Space Research Organisation (ISRO), space sector PSU NewSpace India Limited (NSIL), IN-SPACe, and and the Department of Space. 
  • ISRO: Focus on research, innovation, and advanced space technologies. 
  • IN-SPACe: Serve as a single-window agency for authorising space activities by government and private entities, ensuring safety, national security, and compliance with international obligations. 
  • NSIL: Commercialise publicly funded space technologies and provide space-based services to government and private entities. 
  • Department of Space: Implements policy, ensures safe and sustainable operations, coordinates international cooperation, and resolves disputes. 
• Applicability: This policy covers all space activities in Indian territory and its exclusive economic zone, with the Government reserving the right to grant case-by-case exemptions.

What Challenges Does India's Space Industry Face Without a National Space Law? 

• Regulatory Hurdles: Multiple ministries (Defence, Telecom, Commerce, Department of Space) handle approvals, causing duplication and delays. Satellite communication projects, for example, require simultaneous clearance from DoT, DoS, and Defence, hindering operations. 
  • IN-SPACe operates through executive orders, lacking formal legislative authority. This reduces investor confidence as regulatory decisions can be legally challenged. 
• Liability Concerns: Under the Outer Space Treaty, India is internationally liable for all space activities, including private launches. 
  • Startups face high entry barriers due to costly liability insurance requirements. 
• Foreign Direct Investment (FDI) Concerns: Limited FDI allowed in satellite manufacturing; unclear automatic approval routes deter foreign investors. 
  • India’s space industry seeks clear 100% automatic FDI in satellite components to attract investment. 
  • Competitor nations like Luxembourg and UAE attract space startups with more liberal investment policies. 
• Cybersecurity Threats: Satellites are vulnerable to hacking, GPS spoofing, and space-based espionage. India lacks an independent Space Cybersecurity Command or autonomous ISRO cybersecurity division, posing national security risks. 
• Climate Change and Infrastructure Risks: Coastal launch sites like Sriharikota and Thumba face climate threats. No legal requirement exists for climate adaptation measures, leaving infrastructure vulnerable to extreme weather. 
• Strategic Military Gaps: Delays in establishing space-based defense assets and integrated commands are exacerbated by lack of statutory support. 

What Measures are Needed to Enhance India’s Space Industry? 

• Provide Legal Backing: Enact a comprehensive space law to align with OST, define roles of government and private actors, and establish liability norms. 
• Expand Private Sector and Startup Participation: Fully implement New Space Policy 2023 to enable private development of launch vehicles, satellites, and deep-space tech. 
  • Strengthen IN-SPACe to streamline approvals and reduce bureaucratic delays. 
• Strengthen Space Traffic Management and Debris Mitigation: Establish an independent Space Traffic Management (STM) system to track and mitigate debris. 
  • Deploy active debris removal satellites using laser ablation and robotic arms. 
  • Enhance international cooperation via UNOOSA and IADC (Inter-Agency Space Debris Coordination Committee)  for sustainable space operations. 
• Enhance Cybersecurity and Space Asset Protection: Create a dedicated Space Cybersecurity Command under ISRO and DRDO. 
  • Strengthen satellite defenses with quantum encryption, AI-driven anomaly detection, and satellite firewalls.

Conclusion 

India’s scientific and technological achievements are undeniable, but a national space law is needed to ensure regulatory clarity, attract investment, protect startups, and promote sustainable, globally aligned space development. 

Drishti Mains Question:

Evaluate the importance of a comprehensive national space law for India’s growing space sector. What are the challenges in its absence?

UPSC Civil Services Examination, Previous Year Questions (PYQs) 

Mains

Q.1  What is India’s plan to have its own space station and how will it benefit our space programme? (2019)

Q.2  Discuss India’s achievements in the field of Space Science and Technology. How the application of this technology helped India in its socio-economic development? (2016)

Q.3 What is the main task of India’s third mood mission which could not be achieved in its earlier mission? List the countries that have achieved this task. Introduce the subsystems in the spacecraft launched and explain the role of the ‘Virtual Launch Control Centre’ at the Vikram Sarabhai Space Centre which contributed to the successful launch from Sriharikota. (2023) 

Rubella

Source: WHO 

The World Health Organization (WHO) has officially declared Nepal rubella-free.  

Rubella

• About: Rubella (German measles), is a highly contagious viral infection caused by the rubella virus, an enveloped single-stranded RNA virus, which causes mild fever and rash. 
• Risk and Impact: Mild in children and adults, but poses serious risks to pregnant women, potentially leading to miscarriage, stillbirth, or Congenital Rubella Syndrome (CRS) in infants.  
  • CRS can cause hearing impairment, cataracts, heart defects, and developmental delays, making rubella a leading cause of preventable congenital disabilities globally. 
• Epidemiology: In 2022, there were 17,865 reported cases across 78 countries.  
  • In 2024, 14.3 million children missed all vaccinations, and only 84% of infants received the first dose of the measles vaccine. 
• Prevention and Vaccination: The Measles-Rubella (MR) vaccine is the most effective preventive measure, administered in 2 doses to provide long-term immunity against rubella and its complications. 

India’s Progress Towards Rubella Elimination 

• Key Initiatives: The National Zero Measles-Rubella Elimination Campaign (2025-26) under the Universal Immunization Programme (UIP) aims to eliminate Measles and Rubella (M-R) in India by 2026 through 100% immunization coverage.  
  • Other Initiatives include Mission Indradhanush and Intensified Mission Indradhanush. 
• MR Vaccinationation Coverage: As of 2024–25, over 90% of children received both MR vaccine doses. 
• District-Level Achievements: Between Jan–Mar 2025, 332 districts were measles-free and 487 districts rubella-free.

Read More: Measles and Rubella, National Zero Measles-Rubella Elimination Campaign   

CAG Review of the FRBM Act

Source: TOI 

Why in News? 

The Comptroller and Auditor General (CAG) presented its 2023-24 annual review of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, in Parliament.  

• The review shows that India is moving steadily towards long-term macroeconomic stability. 

What are the Key Highlights of the CAG Review of the FRBM Act for FY 2023-24? 

• Central Government Debt: Declined to 57% of Gross Domestic Product (GDP) (March 2024) from 61.38% in FY 2020-21. 
• General Government Debt (GGD): GGD declined slightly from 83% of GDP in March 2022 to 81.3% in March 2023, still far above the 60% target. 
• Debt Sustainability Analysis (DSA):  DSA assesses the government’s ability to service debt, with the debt-to-GDP ratio as the key measure. 
  • A sustainable fiscal policy is one where the debt-to-GDP ratio is stable or declining over the long term. 
  • The Centre’s debt-to-GDP ratio peaked at 61.38% in FY 2020-21 and declined to 57% in FY 2023-24. 
• Unrealised Taxes: At the end of FY 2023-24, Rs 31.11 lakh crore in taxes remained unrealised, up Rs 9.81 lakh crore from the 2022-23.

What is Fiscal Responsibility and Budget Management (FRBM) Act, 2003? 

• About: The FRBM Act, 2003 was enacted to reduce fiscal deficits and promote long-term macroeconomic stability and inter-generational equity. 
  • It has since been amended in 2004, 2012, 2015, and 2018 to revise deficit targets, set new debt reduction goals, and allow flexibility in fiscal management during crises or economic uncertainties. 
• Key Provisions:   
  • Fiscal Responsibility: The Act mandates that the Finance Minister review fiscal trends and present half-yearly reviews to both Houses of Parliament.  
  • Medium-Term Fiscal Policy (MTFP): The Act mandates the presentation of the MTFP statement, which outlines three-year rolling targets for key fiscal indicators like Revenue Deficit, Fiscal Deficit, and Central Government Debt as a percentage of GDP. 
  • Implementation: The CAG conducts annual reviews to assess the government's compliance with the FRBM targets. 
• FRBM Targets: The 2018 amendment set targets to reduce General Government Debt (Centre + States, excluding inter- governmental liabilities) to 60% of GDP and Central Government Debt to 40% by FY 2024-25.  
  • The Fiscal Deficit(FD) target is 3% of GDP by March 2021(target deferred due to pandemic). The government now commits to FD below 4.5% of GDP by 2025-26. 
    • In June 2025, the Government of India successfully met its fiscal deficit target of 4.8% of GDP for FY 2024–25. 
  • The government shall not provide additional loan guarantees on the security of the Consolidated Fund of India in excess of one-half per cent of GDP in any financial year. 

Read More: India's Fiscal Consolidation, Government's Long-Term Fiscal Discipline

UPSC Civil Services Examination, Previous Year Questions (PYQs) 

Prelims:

Q. Consider the following statements: (2018)

1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments. 
2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments. 
3. As per the Constitution of India, it is mandatory for a State to take the Central Government’s consent for raising any loan if the former owes any outstanding liabilities to the latter. 

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

Q. A country's fiscal deficit stands at 50,000 crores. It is receiving 10,000 crores through non-debt creating capital receipts. The country's interest liabilities are 1,500 crores. What is the gross primary deficit?   (2025)

(a) 48,500 crores 

(b) 51,500 crores

(c) 58,500 crores

(d) None of the above

Ans: (a)