Shrinking Clusters of India’s Exports

Source:TH 

Why in News?

The Reserve Bank of India Handbook of Statistics on Indian States 2024–25 shows that India’s export growth is increasingly concentrated in a few States, raising concerns that exports may now reflect existing regional advantages rather than driving broad-based development. 

What does the RBI Reveal About India’s Export Structure? 

• Concentrated in Just a Few States: Nearly 70% of India’s exports now come from just five States: Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Uttar Pradesh. 
  • Five years ago, this share was about 65%, showing a clear rise in concentration. 
• Core-Periphery Pattern: The export engine is being powered by a shrinking cluster of states, leading to an increasingly lopsided export geography.  
  • Coastal belts in the south and west are integrating tightly into global supply chains, while the demographic heartlands of the north and east are effectively "decoupling" from India's trade engine. 
• Rising Market Concentration: The Herfindahl-Hirschman Index (HHI) for India's exports is increasing, signaling a rise in market concentration and a top-heavy export structure.  
  • The lagging regions are not catching up, further deepening this divide. 

What are the Challenges Arising from Concentration of Exports in a Few States? 

• Breakdown of the Export–employment Link: Export expansion no longer translates into mass industrial employment.  
  • Annual Survey of Industries (ASI) 2022–23 data shows fixed capital investment growing by about 10.6%, while employment increased by only 7.4%, indicating capital deepening.  
  • With fixed capital per worker rising to Rs 23.6 lakh, factories are becoming more capital-intensive and less labour-absorbing, meaning exports increasingly generate value without creating proportional employment, weakening their traditional role in driving structural transformation. 
  • Manufacturing’s share in total employment has stagnated at 11.6 - 12% despite record exports, indicating that export growth is concentrated in capital-intensive hubs rather than creating jobs in labour-surplus hinterland States. 
• Spatial Lock-in of High-growth Export Sectors: Under the PLI scheme, electronics exports grew by over 47% year-on-year, yet remain concentrated in specific districts such as Kancheepuram and Noida.  
  • The complexity and logistics precision required by these supply chains prevent their diffusion to less-developed regions, reinforcing export concentration. 
• Financial Drain from Poorer States: RBI data on Credit–Deposit (CD) ratios reveals a stark divide. Export powerhouses like Tamil Nadu and Andhra Pradesh record CD ratios above 90%, indicating strong recycling of local savings into local industry.  
  • In contrast, Bihar and eastern Uttar Pradesh have CD ratios below 50%, showing that savings mobilised in poorer States are lent out to industrialised coastal regions, creating a perverse capital outflow. 
  • The failure of the hinterland to converge with growth centres reflects weak state capacity and shallow financial depth, reinforcing regional inequality. 
• Weak State and Human Capital Deficits: Low-export States suffer from persistent deficits in skills, health, infrastructure, and institutional capacity.  
  • These constraints limit their ability to participate in high-complexity global value chains, making it difficult for them to upgrade their export baskets or attract global capital, and thereby perpetuating regional divergence. 
• Vulnerability to Global Trade Slowdown: The global window for low-skill, labour-intensive industrialisation used by countries like Bangladesh and Vietnam to integrate into world trade is rapidly closing. 
  • Global capital is no longer chasing just low-cost labor (the hinterland's advantage). It now seeks "high economic complexity", with World Trade Organization (WTO) data indicating merchandise trade volume growth slowing to 0.5–3% and UN Trade and Development (UNCTAD) 2023 showing that the top 10 exporters control around 55% of world trade.  
  • In such a context, India’s reliance on a narrow set of export States increases vulnerability to region-specific shocks. 

What Measures can Drive a Sustainable Transformation in India’s Export Sector? 

• Strengthen Lagging State Capacity: Use PM Gati Shakti to close infrastructure gaps in low-export States through integrated planning of roads, railways, ports, and logistics. 
  • Expand Industrial Corridor Projects and ensure their spread beyond coastal States into the hinterland. 
  • Improve port-led development through Sagarmala and inland connectivity via Bharatmala. Reduce transaction costs using the National Logistics Policy and Unified Logistics Interface Platform (ULIP). 
• Rebalance Export Policy for Employment: Under Export Promotion Mission (EPM), reorient Production Linked Incentive (PLI schemes to include explicit weightage for employment intensity, not just output or investment. 
  • Encourage labour-absorbing sectors such as textiles, food processing, footwear, and MSME manufacturing alongside high-tech sectors. 
• Human Capital Aligned with Export Needs: Align Skill India Mission, PM Kaushal Vikas Yojana (PMKVY), and Samarth (for textiles) with export-oriented value chains. 
• Improve Access to Finance in Low-export States: Address low Credit–Deposit ratios through MUDRA, and Stand-Up India to improve MSME credit flow. 
  • Use Development Finance Institutions (DFIs) and credit guarantees to crowd in private investment in lagging regions. 
  • Leverage Districts as Export Hubs (DEH) to identify district-specific export potential and reduce over-concentration. Link One District One Product (ODOP) with export facilitation, branding, and global market access. 
• Align trade policy with regional convergence: Use Export Promotion Capital Goods (EPCG) and Remission of Duties and Taxes on Exported Products (RoDTEP) to incentivise firms locating in backward regions. 
  • Encourage states to develop region-specific export strategies aligned with local capabilities. 
  • Integrate export assessment with outcomes under Aspirational Districts Programme to track inclusive development. 

Conclusion 

India’s export growth now mirrors existing regional strengths rather than driving inclusive development. Rising concentration and capital-intensive exports have weakened job creation and regional convergence. Sustainable transformation requires employment-focused, regionally balanced export policies.

Drishti Mains Question: “India’s export growth increasingly reflects existing regional strengths rather than driving inclusive development.” Critically examine.

Dark Patterns

Source: ET 

Why in News?

The Ministry of Consumer Affairs is proactively addressing complaints regarding innovative dark patterns on e-commerce and digital platforms. 

What are Dark Patterns? 

• Deceptive user‑interface designs that manipulate users into making decisions they might not otherwise make (e.g., hidden charges revealed late, tricky opt‑outs).  
• Reflects emerging challenges in consumer protection in the digital economy and the need for regulatory safeguards against unfair practices. 
• Common types of Dark Patterns 
  • False Urgency: Creating artificial time pressure like “Only 2 left!” or “Offer ends in 5 minutes” to force quick decisions. 
  • Basket Sneaking:Adding extra items or charges to the cart without clear user consent (e.g., insurance, convenience fee). 
  • Confirm Shaming: Guilt-tripping users into choices using language like “No, I don’t care about saving money”. 
  • Forced Action: Making users perform unwanted actions (sign-ups, app downloads) to continue using a service. 
  • Subscription Trap: Easy to subscribe but difficult to cancel; cancellation options are hidden or overly complex. 
  • Drip Pricing: Revealing additional costs only at the final stage of checkout.  
  • Bait and Switch: Advertising one option but delivering another after the user clicks. 
  • Nagging: Repeated pop-ups or prompts pressuring users to make a specific choice. 
  • Disguised Advertisements: Ads designed to look like genuine content or system notifications. 

What is the Regulatory Framework for Dark Patterns in India 

• Consumer Protection Act, 2019 
  • The primary law governing consumer rights in India, which replaced the 1986 Act to address modern consumer issues including e‑commerce disputes. 
  • Provides a legal basis for tackling unfair trade practices such as dark patterns and mandates time‑bound disposal of complaints. 
  • Central Consumer Protection Authority (CCPA) 
  • A statutory body under the Consumer Protection Act, 2019 empowered to investigate, enforce, and penalize unfair trade practices. 
    • Key regulatory authority in curbing deceptive practices like dark patterns and enforcing consumer rights. 
    • In November 2023, the CCPA issued the “Guidelines for Prevention and Regulation of Dark Patterns, 2023”.  
• e‑Jagriti Platform 
  • A digital grievance redressal system launched in January 2025 allowing consumers to file complaints online, participate in virtual hearings, and track cases in real time. 
  • Represents the government’s push for digital justice and accessibility in consumer dispute resolution. 

What are the Ethical and Economical Implications of Dark Patterns? 

• Ethical Implications: 
  • Violation of consumer autonomy: Dark patterns manipulate user choices, undermining informed and free consent. 
  • Deception and lack of transparency: They rely on misleading design rather than honest information, breaching ethical business conduct. 
  • Erosion of trust: Repeated exposure reduces public trust in digital platforms and institutions. 
  • Exploitation of vulnerable users: Elderly, children, and first-time internet users are disproportionately affected. 
• Economic Implications: 
  • Market distortion: Manipulative practices weaken fair competition by rewarding deceptive firms over ethical ones. 
  • Hidden financial costs to consumers: Users may incur unwanted subscriptions, fees, or purchases, reducing consumer welfare. 
  • Long-term business risk: Regulatory penalties and reputational damage increase compliance and legal costs for firms. 
  • Reduced efficiency of digital markets: When trust declines, user participation and digital adoption may slow down. 

Way Forward 

• Shift from 'Caveat Emptor' to 'Caveat Venditor' : The traditional "Buyer Beware" philosophy is insufficient in the digital age due to information asymmetry. India must move toward "Seller Beware," where the burden of proof lies with the platform to demonstrate that their UI design is transparent and non-manipulative. 
• Implementation of 'Ethics by Design': Regulatory bodies like the CCPA should collaborate with the Ministry of Electronics and Information Technology (MeitY) to mandate "Ethical UI/UX" frameworks.  
  • Companies should be encouraged to undergo Digital Ethics Audits to ensure their algorithms do not exploit behavioral psychology. 
• Strengthening Algorithmic Accountability: As dark patterns are increasingly automated via AI, the Digital India Bill should include provisions for algorithmic transparency.  
  • Regulators need the technical tools to inspect how "nudges" are personalized to exploit specific user vulnerabilities (e.g., targeting low-income groups with "Drip Pricing"). 
• Global Regulatory Convergence: India should align its domestic guidelines with international standards like the EU’s Digital Services Act (DSA) and the UK’s Online Safety Act.  
  • A "Global Code of Conduct" for e-commerce would prevent "Regulatory Arbitrage," where companies follow ethical standards in the West but use deceptive patterns in emerging markets like India. 
• Empowering the "Digital Nagarik": While the e-Jagriti platform is a step toward "Digital Justice," it must be complemented by large-scale digital literacy campaigns.  
  • Consumers should be trained to identify "Confirm Shaming" or "Subscription Traps," turning them from passive users into active "Digital Citizens."

ISRO’s Heaviest Launch: BlueBird Block-2

Source: IE 

Why in News? 

ISRO marked a major milestone by launching its heaviest satellite, BlueBird Block-2 (6,100 kg, by the US firm AST SpaceMobile), using the Launch Vehicle Mark-3 (LVM3) rocket, showcasing India’s strong heavy-lift launch capability. 

What is BlueBird Block-2? 

• About: The BlueBird Block-2, is the heaviest payload ISRO has placed into orbit, surpassing the previous record of 5,700 kg (OneWeb satellites).  
  • The satellite was injected into a Low Earth Orbit (LEO) of approximately 520 km altitude. 
• Objective: It will provide direct-to-mobile connectivity, enabling 4G and 5G connectivity directly to mobile phones without requiring specialized ground stations. 
• Commercial Significance: This is ISRO's 3rd commercial mission using LVM-3, following two OneWeb satellite launches in 2022 and 2023.  
  • Despite global alternatives like SpaceX’s Falcon-9 and the ESA’s Ariane 6, the LVM-3 underscores ISRO’s capacity for heavy launches at much lower cost. 

What is the LVM3 Launch Vehicle? 

• About: The LVM3 is ISRO's largest and most powerful heavy-lift rocket, with three stages. This rocket can carry payloads of up to 4,000 kilograms to Geosynchronous Transfer Orbit and 8,000 kg in LEO. 
  • Previously called the Geosynchronous Satellite Launch Vehicle Mk III, it launched for the first time in December 2014. 
• 3 Stages:  
  • First Stage: Uses two large S200 solid rocket boosters, which burn solid propellant HTPB (hydroxyl-terminated polybutadiene). 
  • Second Stage (Core): Uses liquid-fuelled stage, powered by two Vikas engines, burning UDMH (unsymmetrical dimethylhydrazine) and nitrogen tetroxide. 
  • Third Stage (Upper): Uses the C25 cryogenic stage,, equipped with the CE20 engine, burning liquid hydrogen and liquid oxygen. 
• Engine Optimization for Higher Efficiency:  
  • Cryogenic Stage Upgrade: ISRO is developing the C32 cryogenic stage for higher thrust and fuel capacity.  
  • Semi-Cryogenic Engine Development: ISRO  is developing semi-cryogenic engines using kerosene and liquid oxygen, which will raise LEO payload capacity from 8,000 kg to 10,000 kg. 
  • Bootstrap Reignition Technology: ISRO is developing bootstrap reignition capability for cryogenic engines, allowing the upper stage to restart without external gases like helium, reducing fuel weight and increasing payload capacity for multi-orbit missions. 
• Role in Future Missions: A modified LVM-3 with added human-safety redundancies will support Gaganyaan missions and later carry modules for the Bharatiya Antariksh Station, India’s planned space station. 

Micrometeoroids and Orbital Debris

Source: TH

Why in News?  

The Micrometeoroids and Orbital Debris (MMOD) threat has regained attention after space debris damaged China’s Shenzhou-20 capsule. With expanding human spaceflight including Gaganyaan, protecting astronauts from high-velocity debris is now critical.

What are Micrometeoroids and Orbital Debris (MMOD)? 

• About: Micrometeoroids are naturally occurring tiny particles, ranging from a few micrometres to about 2 mm, mostly originating from asteroid collisions and comets. 
  • They travel at very high velocities (11–72 km/s), making even dust-sized particles carry enough kinetic energy at orbital speeds to cause critical or catastrophic damage to onboard systems. 
  • Whereas, orbital debris, also known as space junk, consists of human-made objects in Earth’s orbit that no longer serve any purpose, such as defunct satellites, rocket fragments, collision debris, and remnants of anti-satellite tests. 
    • They typically move at around 10 km/s, capable of causing severe damage on impact. 
    • Rising debris density raises the risk of a runaway collision cascade known as the Kessler Syndrome, which could make some orbits unusable. 
• Distribution: Orbital debris is mainly concentrated in Low Earth Orbit (LEO) between 200 km and 2,000 km altitude. There are around 34,000 trackable debris objects larger than 10 cm and over 128 million pieces larger than 1 mm in LEO. 
  • Micrometeoroids are present throughout space but are slightly more concentrated near Earth due to gravitational pull. They cause billions of micro-impacts annually on spacecraft operating in Earth’s orbit. 
• Global Mechanisms to Manage Space Debris:  
  • Outer Space Treaty 1967 (India is a Signatory): Article VI of the treaty makes states responsible for all national space activities, including private ones, but lacks enforcement mechanisms.  
  • Convention on International Liability for Damage Caused by Space Objects 1972  (India is a Signatory) : It imposes absolute liability for space object damage on Earth, requiring no proof of negligence, but enforcement is weak.  
  • Voluntary UN Guidelines on Deorbiting: The UN recommends deorbiting satellites within 25 years, but compliance rate is only around 30%. 
  • Inter-Agency Space Debris Coordination Committee (IADC): Brings together agencies such as NASA, European Space Agency, and ISRO to develop technical standards. 
    • These standards inform debris mitigation guidelines adopted by United Nations Committee on the Peaceful Uses of Outer Space (UNCOPUOS). 
    • The guidelines are non-binding, relying on voluntary compliance rather than enforcement. 
• India’s Measures for Space Debris Mitigation: India has launched the Debris Free Space Missions (DFSM) initiative, aiming to achieve zero-debris space missions by 2030 for all Indian space actors, public and private. 
  • IS4OM (ISRO System for Safe and Sustainable Space Operations Management) has been set up to integrate all efforts related to spaceflight safety, Space Situational Assessment (SSA), and debris mitigation in an increasingly congested orbital environment. 
  • The Network for Space Object Tracking and Analysis (NETRA) strengthens space surveillance and tracking capabilities. 
  • The Indian Space Policy 2023 explicitly emphasises space debris mitigation and SSA capacity building.

Reservation for Agniveers in CAPFs

Source:TH 

The Union Home Ministry has decided to increase reservation for ex-Agniveers in Group C posts of Central Armed Police Forces (CAPFs) from 10% to 50%, marking a major policy shift under the Agnipath scheme. 

• Ex-Agniveers will be exempted from Physical Standard Test (PST) and Physical Efficiency Test (PET). However, they must appear for written examinations like other candidates. 

Agnipath Scheme 

• About: Launched in June 2022, is a short-term military recruitment programme. Recruits under this scheme are called Agniveers, and the objective is to maintain a young, agile, and technology-oriented force while optimising defence personnel expenditure. 
• Eligibility conditions: Applicants must be Indian citizens and meet prescribed educational, physical, and medical standards of the respective service. 
  • The age limit was 17.5–23 years for the 2022 intake, and 17.5–21 years for subsequent intakes, reflecting the scheme’s focus on youth induction. 
• Nature of Recruitment: Agniveers are enrolled for a fixed tenure of four years. They will be recruited as personnel below officer (PBOR) rank in the army, air force and navy for four years, including six months of training. 
• Post-service Exit and Permanent Absorption:  Up to 25% of each Agniveer batch may be absorbed into the regular cadre based on performance, without any right to selection, while the remaining personnel receive skill certification to support post-service employability. 
• Pay structure and Seva Nidhi Benefits: Agniveers earn Rs 30,000–Rs 40,000 per month over four years, contribute 30% of pay to a Agniveer Corpus Fund matched by the government, and receive a tax-free Seva Nidhi package of about Rs 11.71 lakh on exit, with no pension or gratuity. 
  • Rs 48 lakh non-contributory life insurance cover is provided during service. 

Read more: Agnipath Scheme

Kashiwazaki-Kariwa Nuclear Plant and Fukushima Disaster

Source: TH 

Nearly 15 years after the Fukushima disaster, Japan plans to restart the Kashiwazaki-Kariwa nuclear plant but the move has triggered protests, with Fukushima survivors warning against renewed nuclear safety risks. 

• To reduce dependence on imported fossil fuels (account for 60–70% of Japan’s electricity generation), Japan plans to double nuclear power’s share to 20% by 2040 to meet rising energy demand from AI data centres and its decarbonisation goals. 
• Kashiwazaki-Kariwa Nuclear Plant: It is the world’s largest nuclear power plant by installed capacity, located near Tokyo. 
  • It is operated by Tokyo Electric Power Company (TEPCO), the same operator responsible for the Fukushima Daiichi plant. 
• Fukushima Nuclear Disaster (2011): The 2011 earthquake and tsunami disabled the cooling systems at the nuclear plant, leading to core meltdowns in three reactors and large-scale radiation release, making it the worst nuclear accident since Chernobyl (1986), resulting in mass evacuations and long-term exclusion zones. 

Note:  As of 2025, India’s nuclear power capacity stands at about 8.18 GW, and the country has set a long-term target of 100 GW by 2047. To accelerate this expansion, the SHANTI Act, 2025 opens nuclear reactor development to private sector participation, marking a major policy shift aimed at mobilising investment, improving efficiency.

Read more: India's Nuclear Energy Roadmap