JULY 31 – UPSC Current Affairs – PM IAS

Lok Sabha Approved Extension of President’s Rule in Manipur Syllabus:

GS2/Governance

The Lok Sabha has given its approval to the statutory resolution regarding the extension of President’s rule in Manipur for a further period of six months with effect from 13th of August 2025.

Background

Manipur was placed under President’s Rule in February 2025 after erstwhile Chief Minister N. Biren Singh stepped down, nearly two years after the ethnic conflict began in the State between the valley-based Meitei community and the hills-based Scheduled Tribe Kuki-Zo group of communities. The conflict originated from the Meitei demand for Scheduled Tribe (ST) status, which the Kukis opposed, fearing loss of job opportunities and other affirmative actions meant for STs.

Do you know? –

Emergency provisions in Part XVIII of the Indian Constitution, inspired by the German Constitution, allow the Central government to manage crises threatening India’s sovereignty, unity, or security. – There are three types of emergencies: national (Article 352), state (Article 356), and financial (Article 360).

President’s Rule

It is a state emergency which is commonly called President’s Rule. The term ‘President’s Rule’ is not mentioned in the Constitution. It has been declared under Article 356, fulfilling the Union’s duty under Article 355 to protect states from external aggression or internal disturbances to ensure that State governments operate as per the Constitution. Article 356(1) allows the President to declare President’s Rule if a State’s constitutional machinery fails due to non-performance or malperformance, based on the Governor’s report or otherwise.This shifts the State’s executive powers to the Centre and legislative powers to Parliament, while the High Court remains unaffected. Under Article 365, if a State disobeys Union directions, the President may also declare a Constitutional Emergency.

Conditions

The proclamation must be approved by both Houses of Parliament within two months and can last six months per approval. It may be extended beyond a year only if a national emergency is in force and the Election Commission certifies election difficulties.However, President’s Rule cannot exceed three years in total and can be revoked anytime.

How is a ‘constitutional emergency’ different from a ‘national emergency’?

A Constitutional emergency (Article 356) and a National emergency (Article 352) differ in purpose, scope, and procedure. – A national emergency is declared when India’s security is threatened by war, external aggression, or armed rebellion.

  1. It affects the entire nation or part of it and requires a special majority in Parliament.
  2. It has no time limit, and state governments continue to function.
  3. The 44th Amendment (1978) introduced safeguards, including Cabinet approval, judicial review, and protection of fundamental rights under Articles 20 and 21. – A constitutional emergency, or President’s Rule, is imposed when a state’s government fails to function constitutionally.
  4. It requires only a simple majority in Parliament, can last up to three years, and shifts executive powers to the Centre while suspending or dissolving the state legislature.

Impacts Unlike a national emergency, President’s Rule does not suspend citizens’ fundamental rights.During a national emergency, Article 19 freedoms can be suspended under Article 358, and other rights (except Articles 20 and 21) may also be restricted. Under President’s Rule, the President assumes special powers, with the Governor administering the State on her behalf, aided by the Chief Secretary or appointed advisers. Article 357 allows Parliament to transfer legislative powers to the President or another authority and enables the President to approve spending from the State’s Consolidated Fund.

Instances of Use Despite Dr. B.R. Ambedkar’s hope that it would remain a “dead letter,” President’s Rule has been imposed nearly 134 times across 29 States and UTs since 1950. First applied in Punjab in 1951, it has served as both a crisis-management tool and a politically sensitive measure. Manipur and Uttar Pradesh share the highest number of impositions at 10 each, with Manipur’s latest making it 11 times. Jammu & Kashmir holds the record for the longest cumulative period under President’s Rule (over 12 years), followed by Punjab (over 10 years) and Puducherry (over 7 years).

Judicial Interpretation The Supreme Court’s landmark judgment in S.R. Bommai v. Union of India (1994) redefined the use of President’s Rule under Article 356, emphasizing it should be a last resort option.The Court stated that while India’s federal system favors the Centre, States are not mere extensions of it. It should be used only in cases of constitutional breakdown. The SC ruled that the President’s power under Article 356 is conditional, not absolute, and subject to judicial review. Once imposed, the State government must step down, as two governments cannot coexist.


Election Commission Sets Date for Vice Presidential Poll

Syllabus: GS2/Polity, Governance

In News

The Election Commission of India (ECI) announced that the 17th Vice Presidential election will take place on September 9, 2025. This follows the unexpected resignation of the incumbent Vice President Jagdeep Dhankhar on July 21, 2025.

Background

The Vice President of India holds the second-highest constitutional office in the country. The election for this post is conducted by the ECI as per the provisions of the Constitution. The electoral college for the Vice President comprises members of both Houses of Parliament.

Key Facts about the Vice President

The Vice President is elected by members of an electoral college consisting of members of both Houses of Parliament, in accordance with the system of proportional representation by means of a single transferable vote. – The election is held by secret ballot. – The Vice President is also the ex-officio Chairman of the Rajya Sabha. – The term of office for the Vice President is five years. – The Vice President can resign by writing to the President. – The Vice President can be removed from office by a resolution passed by a majority of all the then members of the Rajya Sabha and agreed to by the Lok Sabha.

Role and Functions

Acts as the ex-officio Chairman of the Rajya Sabha. – Acts as the President when the President is unable to perform their functions due to absence, illness, or any other cause, or during a vacancy in the office of President due to death, resignation, or removal. In such cases, the Vice President acts as President until a new President is elected. – The Vice President’s powers as acting President cease when a new President assumes office.

Process of Election

The election process involves nomination, scrutiny, withdrawal, and polling. The ECI oversees the entire process to ensure free and fair elections. The resignation of the sitting Vice President necessitates an early election to fill the vacancy.


US Imposes 25% Tariff on Indian Imports Syllabus:

GS2/International Relations, GS3/Indian Economy

In News The United States has imposed a 25% tariff on all goods originating from India, effective August 1, 2025. This decision, announced via an executive order by US President Donald Trump, is expected to significantly impact India’s export-driven sectors.

Background

Trade relations between India and the US have seen periods of both cooperation and tension. While both nations have expressed a desire to expand their trade partnership, issues like tariffs and market access have often been points of contention. This latest move marks a significant escalation in trade measures.

Key Impacts and Sectors Affected

Broad Scope: The executive order includes sectors previously exempt from US import duties, such as pharmaceuticals, electronics, petroleum products, textiles, and engineering goods.

No Exemptions for India: Unlike other trading partners who may receive product-level exemptions, India has been denied all such exceptions, facing a uniform 25% ad valorem duty on all products.

Export Decline Forecast: Preliminary estimates suggest India’s goods exports to the US could decrease by 30% from $86.5 billion in FY 2025 to $60.6 billion in FY 2026.

Major Affected Sectors (FY2025 figures): – Petroleum products: $4.1 billion – Smartphones: $10.9 billion – Pharmaceuticals: $9.8 billion

Strategic Tool: Analysts view this directive as more than just a tariff implementation, suggesting it serves as a strategic negotiating tool for the US to push for bilateral trade agreements.

India’s Response

The Indian Ministry of External Affairs (MEA) and the Union Commerce and Industry Minister have stated that India will assess the developments and safeguard national interest. India reiterated that its bilateral relationships stand on their own merit and are not viewed through the prism of a third country. India has also indicated caution in its trade negotiations with the US, prioritizing national interests over meeting deadlines.

Global Trade Context

The US has implemented additional import duties on several nations, varying between 10% and 41%. This means imports from affected nations will be subject to both standard US duties and supplementary reciprocal tariffs, substantially increasing overall duty rates. India is among the nations facing elevated tariffs (25-30%), alongside Brunei, Kazakhstan, Moldova, and Tunisia.


India’s GDP Growth at 6.5% for Q1 FY2026

Syllabus: GS3/Indian Economy, Growth and Development

In News India reported a Gross Domestic Product (GDP) growth of 6.5% for the quarter ending August 2025 (Q1 FY2026). This growth rate continues to position India as the fastest-growing major economy globally, despite ongoing global economic uncertainties.

Economic Highlights –

GDP Growth: Real GDP expanded by 6.5% in 2024–25, with the Reserve Bank of India (RBI) expecting this rate to continue into 2025–26. – Inflation Under Control: Consumer Price Index (CPI) based inflation eased to 2.82% in May 2025, the lowest level since February 2019. Food inflation (Consumer Food Price Index – CFPI) recorded an even lower 0.99% in May 2025, the lowest since October 2021. – Robust Domestic Consumption:

A key driver of the sustained growth. – Increased Foreign Direct Investment (FDI): The services sector attracted 19% of total FDI in FY 2024–25, growing by 40.77% to USD 9.35 billion. Manufacturing FDI grew by 18% to USD 19.04 billion in FY 2024–25. – Government Initiatives: Aimed at boosting infrastructure development and other sectors contributing to growth. – Strong Exports: Total exports reached a record USD 824.9 billion in 2024–25. Merchandise exports (excluding petroleum products) reached USD 374.1 billion, a 6.0% increase. – Foreign Exchange Reserves: Stood at USD 697.9 billion as of June 20, 2025, sufficient to cover over 11 months of goods imports, providing a strong safety net. – Moderate External Debt: At 19.1% of GDP as of March 2025, indicating a healthy financial position.

Challenges

Despite the positive indicators, challenges such as inflationary pressures (though easing) and trade imbalances persist. The recent US tariffs are also a new concern for export-driven sectors.

Outlook The Indian economy continues to be a key driver of global growth, buoyed by sound macroeconomic fundamentals and prudent policies. The RBI expects inflation to remain aligned with its medium-term target of 4%.


Concerns Over Electoral Roll Revision in Bihar

Syllabus: GS2/Polity, Governance, Elections

In News The Election Commission of India (ECI) released the draft electoral rolls for Bihar under the Special Intensive Revision (SIR) 2025. This has sparked a political controversy, with opposition parties alleging “serious malpractices” and the exclusion of a significant number of legitimate voters.

Background

The SIR exercise is undertaken to update voter lists, ensuring accuracy and inclusivity. However, in Bihar, the process has drawn criticism regarding the integrity of the voter list as preparations are underway for a nationwide electoral roll update.

Key Issues and Allegations –

Exclusion of Voters: Senior Congress leader and MP KC Venugopal claimed that names of many voters have been “excluded” from the draft electoral rolls. – Untraceable Electors: Data from the revision shows around 35 lakh (3.5 million) electors have either permanently migrated or could not be traced at their registered addresses, raising alarm. – Bias Allegations: Opposition parties, including the INDIA bloc, accuse the ECI of “compromising democratic values” and showing bias. – Legal Validity Concerns: Bank employees’ unions raised concerns about the legality of keeping banks open on August 3, 2025 (a Sunday) for PM-KISAN disbursements, without a proper Gazette notification, fearing that transactions might not be legally valid. This highlights broader concerns about procedural adherence in government directives.

ECI’s Stance

The ECI maintains that the public has one month to submit claims and objections and assured that “no name will be removed from the draft voter list without a stated reason.” The draft list covers all 243 assembly constituencies and 90,712 polling booths and was shared with all political parties. 1.60 lakh (160,000) Booth Level Agents (BLAs) nominated by District Presidents of 12 political parties actively participated in the process. The ECI has also urged voters to submit new photographs by September 1, 2025, to ensure accurate and updated voter identity cards.

Significance

The controversy underscores the critical importance of transparent and impartial electoral processes, especially in the run-up to significant elections. The outcome of this revision exercise in Bihar will be highly consequential given the country had 96.88 crore (968.8 million) registered voters as of January 1, 2024.


PM-KISAN Scheme:

Syllabus: GS2/Governance, Government Policies; GS3/Indian Economy, Agriculture

In News

Prime Minister Narendra Modi disbursed the 20th installment of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme, totaling around $20,500 crore (₹205 billion) to over 9.7 crore (97 million) farmers nationwide via Direct Benefit Transfer (DBT). This move, aimed at providing direct financial aid, has however sparked tension between bank employees’ unions and the government.

Background

The PM-KISAN scheme, launched in 2019, aims to provide income support to all eligible farmer families across the country to supplement their financial needs. Under the scheme, financial assistance of $6,000 (₹6,000) per annum is provided to eligible farmer families in three equal installments of $2,000 (₹2,000) each.

Banking Sector Concerns

Sunday Opening Directive: The Department of Financial Services issued a directive to keep bank branches open on Sunday, August 3, 2025, specifically for the disbursement of PM-KISAN funds. – Union Opposition: The All India Bank Employees’ Association (AIBEA) expressed deep concern, arguing that without a Gazette notification declaring Sunday a working day under the Negotiable Instruments Act, banks are not legally authorized to access the CBS system and transact business. This could render transactions legally invalid for cheque clearing, interbank dealings, or other compliant operations. – Employee Welfare: Bank unions highlighted that employees would have to work for 12 consecutive days (from July 28 to August 8, 2025), citing existing immense pressure due to staff shortages, increased customer footfall, and multiple government schemes. – Demand for 5-Day Work Week: The incident has reignited calls for a 5-day work week, a long-pending demand from bank unions for employee well-being. – High Customer-to-Employee Ratio: Public Sector Banks (PSBs), which are the backbone of government financial inclusion schemes like PM-KISAN, have an alarming customer-to-employee ratio of 1:2100, significantly higher than private sector banks (around 1:400).

Government’s Stance

The government emphasizes the importance of direct benefit transfer (DBT) for transparency and efficiency in scheme implementation, reaching beneficiaries directly and removing intermediaries.

Impact

While the PM-KISAN disbursements aim to provide crucial support to farmers, the associated directive for Sunday banking has highlighted underlying issues of employee welfare and legal compliance within the banking sector.


Advancements in Renewable Energy Sector: Rajasthan Solar Power Plant

Syllabus: GS3/Environment, Energy, Infrastructure

In News India has made significant strides in the renewable energy sector with the commissioning of a 500 MW solar power plant in Rajasthan. This project is a crucial step towards India’s ambitious goal of achieving 500 GW of non-fossil fuel energy capacity by 2030.

Background

India is among the countries most vulnerable to climate change impacts and has committed to aggressive targets for renewable energy deployment. The country’s energy demand is rapidly growing, and renewable sources are seen as key to meeting this demand sustainably and reducing reliance on fossil fuels.

Key Aspects of the Development

Capacity Addition: The new 500 MW solar plant significantly boosts India’s installed solar capacity. – Strategic Location: Rajasthan is a prime location for solar power generation due to its high solar insolation. – National Target: This project directly contributes to India’s target of reaching 500 GW of non-fossil fuel energy capacity by 2030, a commitment made at COP26. – Environmental Benefits: Increased renewable energy generation contributes substantially to reducing carbon emissions and promoting sustainable energy sources, aligning with India’s climate action goals. – Economic Benefits: Such projects also create employment opportunities and attract investment in the renewable energy sector.

Government Initiatives and Policy Support

National Solar Mission: Promoting solar power generation through various schemes and incentives. – Production Linked Incentive (PLI) Schemes: Encouraging domestic manufacturing of solar PV modules. – Green Hydrogen Mission: India is also aggressively pushing for green hydrogen production, further diversifying its clean energy portfolio.

Challenges

Despite rapid growth, challenges remain in grid integration, land acquisition, and ensuring stable power supply from intermittent renewable sources. However, the consistent commissioning of large-scale projects demonstrates strong momentum in overcoming these hurdles.


Supreme Court Alarmed by Ecological Deterioration in Himachal Pradesh

Syllabus: GS3/Environment, Disaster Management; GS2/Governance

In News

The Supreme Court of India has expressed grave concern over the rapidly deteriorating ecological balance in Himachal Pradesh, warning that if unchecked, the state could “vanish in thin air” from the map of India. The apex court’s observations came while it refused to interfere with a Himachal Pradesh High Court order upholding a government notification declaring certain areas as “green area” to curb construction activity.

Background

Himachal Pradesh, a fragile Himalayan state, has been experiencing increasing environmental degradation, including frequent landslides, land subsidence, and road collapses, largely attributed to unchecked human activity and infrastructure development. The state is renowned for its abundant beauty and greenery, with forests encompassing over 66% of its total land area.

Court’s Observations and Concerns

Human Activity Blamed: The court explicitly stated that “humans, not nature, are responsible for phenomenon such as continuous land sliding of mountains and soil, landslides on roads, collapsing of houses and buildings, subsidence of road etc.” – Unchecked Development: Major causes identified include hydropower projects, four-lane highways, multi-storey constructions, and deforestation. – Revenue vs. Ecology: The bench urged both state and central governments to rethink their development priorities, cautioning that “earning revenue is not everything. Revenue cannot be earned at the cost of environment and ecology.” – Climate Change Impact: Increasing climate change impacts, such as shifting snowfall patterns, rising temperatures, and frequent extreme weather events, have serious implications for farming, horticulture, and eco-tourism. – Tourism Pressure: The surge in tourism, while an economic driver, has strained the state’s fragile ecosystem.

Recommendations and Way Forward

Multi-Stakeholder Approach: The court called for the involvement of geologists, environmental experts, and local communities in planning any development in the ecologically sensitive Himalayan region. – Inter-State Cooperation: It suggested that all Himalayan states should work together to ensure development is undertaken with an understanding of regional challenges. – Sustainable Practices: Emphasizing eco-friendly development, conservation, and strict enforcement of environmental regulations.

This strong judicial intervention highlights the urgent need for a balanced approach to development in ecologically sensitive regions, prioritizing environmental sustainability over short-term economic gains.


India’s Cultural Heritage Preservation Efforts: ‘Heritage First’ Initiative

Syllabus: GS1/Indian Heritage and Culture; GS2/Governance, Government Policies In News

The Government of India has launched the ‘Heritage First’ initiative, aimed at preserving and promoting the country’s rich cultural heritage.

This program focuses on restoring historical monuments, supporting traditional art forms, and fostering awareness about India’s diverse cultural legacy.

Background India boasts a vast and ancient cultural heritage, encompassing thousands of historical monuments, diverse art forms, and rich traditions. Recognizing the importance of this heritage for national identity, tourism, and future generations, the government has intensified efforts for its conservation and promotion.

Key Pillars of ‘Heritage First’ Initiative

Restoration of Historical Monuments: The initiative will prioritize the restoration and conservation of ancient monuments, archaeological sites, and historic buildings across the country. This includes structural repairs, chemical preservation, and landscape development around these sites.

Support for Traditional Art Forms: Efforts will be made to identify, document, and support traditional Indian art forms, including performing arts, crafts, and folk traditions, which are at risk of decline. This may involve providing grants, training, and platforms for artists.

Fostering Awareness: Campaigns and educational programs will be launched to increase public awareness and appreciation of India’s cultural heritage among citizens, especially the youth. This includes promoting heritage tourism and integrating heritage education into curricula.

Community Involvement: The initiative seeks to encourage local communities to actively participate in the preservation and promotion of their regional heritage, recognizing their vital role as custodians. Technological Integration: Utilizing modern technologies for mapping, documentation, and virtual experiences of heritage sites.

Significance

National Pride: Promotes a sense of national pride and identity by showcasing India’s rich historical and artistic legacy.

Cultural Tourism: Boosts cultural tourism, which can be a significant source of revenue and employment. – Soft Power: Enhances India’s soft power globally by demonstrating its rich cultural diversity.

Sustainable Development: Integrates heritage preservation with sustainable development goals, ensuring that cultural assets are conserved for future generations.

This initiative aligns with the broader vision of promoting India as a global cultural destination and underscores the government’s commitment to safeguarding its unique heritage.


Pune’s Environmental Status Report Reveals Deteriorating Air Quality

Syllabus: GS3/Environment, Pollution

In News Pune’s Environmental Status Report (ESR), published by the Pune Municipal Corporation (PMC), has revealed a deterioration in air quality for the 2024-25 period compared to 2023-24. The data indicates fewer “good” and “satisfactory” air quality days and an increase in “moderate” and “very poor” days, particularly concerning AQI PM10 levels.

Key Findings from the ESR (2024-25 vs. 2023-24) – Good Days: Decreased from 79 to 52. – Satisfactory Days: Decreased from 145 to 137. – Bad Days: Increased from 1 to 3. – Moderate Days: Increased from 140 to 174. – Air Quality Index (AQI) PM10 Levels: Showed a clear deterioration.

Contributing Factors

Increased Use of Fossil Fuels: Attributed to the decline in air quality.

Rise in Vehicular Population: A significant contributor to urban pollution.

Urbanization and Real Estate Boom: Redevelopment of old properties and increasing urban density are cited.

Concreting of Roads: Adversely impacting the environment by reducing permeable surfaces.

Open Burning of Waste: A practice that exacerbates air pollution, as noted by citizens.

Increase in Trash Generation: Daily trash generation increased from 2,100 tonnes in 2023-24 to 2,350 tonnes in 2024-25.

Recommendations and Solutions

Promote Public Transport: Environmentalists and urban planners suggest increased use of public transport and discouraging personal vehicles.

Awareness Campaigns: The administration should create more awareness about vehicular pollution. – Curbs on Waste Burning: Stricter enforcement against open burning of waste.

Green-field Development: Promote green-field projects and densification near public transport facilities, ensuring allied civic infrastructure is built simultaneously.

Increased Solar Power Usage: A positive note from the report is that solar power usage nearly doubled in a year, with citizens consuming 166,513 KW, 61% of which was by domestic users and housing societies.

The report underscores the urgent need for comprehensive environmental management strategies in rapidly urbanizing Indian cities to mitigate pollution and ensure sustainable development.


India’s Stance on Russia Relations Amidst US Criticism

Syllabus: GS2/International Relations In News

India has firmly rejected suggestions of any strain in its relations with Russia following sharp criticism from US President Donald Trump regarding the economic and strategic ties between the two countries. The Ministry of External Affairs (MEA) reiterated India’s long-standing position of an independent foreign policy.

Background India and Russia have historically maintained a strong strategic partnership, particularly in defence and energy. However, geopolitical shifts and the ongoing conflict in Ukraine have led to increased scrutiny and pressure from Western nations, notably the US, regarding India’s ties with Moscow.

Key Statements and Positions

Independent Foreign Policy: MEA spokesperson Randhir Jaiswal stated, “Our bilateral relationships with various countries stand on their own merit and should not be seen from the prism of a third country. India and Russia have a steady and time-tested partnership.”

Trump’s Criticism: US President Trump had publicly criticized India’s ties with Russia, stating, “I don’t care what India does with Russia. They can take their dead economies down together, for all I care.” He also noted low business volumes between the US and India due to “their tariffs are too high.”

India-US Partnership: Despite Trump’s remarks, India reaffirmed the importance of its comprehensive global strategic partnership with the US, anchored in shared interests and democratic values.

Defence Sourcing: Jaiswal emphasized that India’s defence requirements are determined solely by its national security imperatives and strategic assessments, implicitly defending its continued arms procurement from Russia.

Energy Sourcing: Regarding oil imports, India reiterated its broad approach to energy sourcing, looking at market availability and prevailing global situations. Russia has remained India’s top oil supplier, accounting for nearly 35-40% of its imports, significantly up from 0.2% before the Ukraine war.

Sanctions: India has taken note of US sanctions on Indian companies trading with Iran and is examining the matter.

Significance India’s response highlights its commitment to maintaining strategic autonomy in its foreign policy. While balancing its burgeoning ties with the US, India continues to safeguard its long-standing interests with Russia, particularly in critical sectors like defence and energy, despite external pressures. This approach reflects India’s pursuit of multi-alignment in global affairs.


Indian Monsoon Forecast and Agricultural Impact

Syllabus: GS1/Geography, GS3/Indian Economy, Agriculture In News

The Indian Meteorological Department (IMD) has forecast average monsoon rainfall for August 2025 across the country. This forecast is crucial for India’s agriculture sector and has significant implications for the broader economy.

Background

Monsoon rainfall is the lifeline of India’s agriculture, which employs a large portion of the population and contributes significantly to the GDP. A good monsoon ensures healthy crop yields, supports rural incomes, and helps keep food inflation in check. Conversely, a deficient monsoon can lead to agricultural distress, water scarcity, and economic slowdown.

IMD’s Forecast

Average Rainfall: The IMD predicts “average” monsoon rainfall for the month of August. This generally implies rainfall within 96% to 104% of the Long Period Average (LPA).

Regional Variations: While the overall forecast is average, there might be regional variations. For instance, heavy to very heavy rainfall is predicted across the Northeast and adjoining Eastern India, with extremely heavy showers expected over Sub-Himalayan West Bengal, Sikkim, and Meghalaya. Some parts of southern India, like Tamil Nadu and Kerala, are also expected to receive a week-long wet spell.

Impact on Agriculture: An average monsoon is generally favorable for Kharif crops (sown during the monsoon season), including rice, maize, pulses, and oilseeds. It ensures adequate soil moisture and water availability for irrigation.

Economic Implications

Food Inflation: Good monsoon supports agricultural output, helping to moderate food prices and contain overall inflation. – Rural Demand: Healthy agricultural income boosts rural demand, which is a significant component of India’s domestic consumption. – Water Resources: Replenishes reservoirs and groundwater levels, crucial for drinking water and future agricultural seasons.

Government Initiatives

PM-KISAN: Direct financial aid to farmers, helping them cope with agricultural challenges, including those related to monsoon variability. – Crop Insurance Schemes: Mechanisms to protect farmers against crop losses due to adverse weather.

While an average monsoon is a positive sign, consistent monitoring of its distribution and intensity across different regions remains crucial for agricultural planning and water management.


Government’s Push for Semiconductor Innovation and Chip Design

Syllabus: GS3/Science and Technology, Indian Economy In News

The Government of India has sanctioned 23 chip-design projects under the Design Linked Incentive (DLI) Scheme as part of its efforts to boost the country’s semiconductor design capabilities. This move underscores India’s strategic push towards self-reliance and global competitiveness in the critical semiconductor sector.

Background

The semiconductor industry is fundamental to modern technology, powering everything from smartphones and computers to automotive systems and critical infrastructure. India has historically relied heavily on imports for semiconductors. Recognizing the strategic importance and economic potential, the government has launched ambitious initiatives to establish a robust domestic semiconductor ecosystem.

Design Linked Incentive (DLI) Scheme – Objective:

The DLI scheme aims to offer financial incentives and design infrastructure support to companies for semiconductor design, enabling them to set up design facilities in India.

Projects Sanctioned: The approval of 23 chip-design projects is a significant step in this direction, indicating active participation from both Indian and global companies.

Key Focus Areas: The projects are expected to cover various aspects of chip design, including Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), and IP Cores.

Financial Support: The scheme provides financial incentives of up to 50% of the eligible expenditure for design and manufacturing.

Broader Semiconductor Mission – India Semiconductor Mission (ISM):

A dedicated agency under the Ministry of Electronics and Information Technology (MeitY) to drive the long-term strategies for developing a sustainable semiconductor and display ecosystem in India.

Incentives for Manufacturing: Beyond design, the government offers significant incentives for setting up semiconductor fabrication plants (fabs) and display manufacturing units in India, attracting major global players.

Skill Development: Emphasis on developing a skilled workforce in semiconductor design and manufacturing through collaborations with academic institutions.

Significance

Strategic Autonomy: Reduces India’s dependence on foreign imports for critical electronic components, enhancing national security and economic resilience.

“Make in India” and “Atmanirbhar Bharat”: Aligns with the government’s vision of boosting domestic manufacturing and achieving self-reliance.

Job Creation: Fosters high-skilled employment opportunities in the advanced technology sector.

Global Supply Chain Resilience: Positions India as a potential alternative hub in the global semiconductor supply chain, which has faced disruptions in recent years.

The sanctioning of these chip design projects is a concrete step towards making India a significant player in the global semiconductor landscape, moving beyond consumption to design and production.

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