1. Draft Shram Shakti Niti 2025 and Labour Policy Analysis
Syllabus
GS-II: Government Policies and Interventions for Development in various sectors and issues arising out of their design and implementation.
GS-III: Inclusive Growth and issues arising from it. Social Sector/Services relating to Health, Education, Human Resources.
Context
The Draft Shram Shakti Niti (DSSN) 2025, proposed by the Ministry of Labour and Employment, aims to comprehensively overhaul India’s labour ecosystem, responding to the challenges posed by the Gig and Platform Economy, Artificial Intelligence (AI) integration, and the continued precariousness of the unorganized workforce. The recent debate stems from critiques published in major newspapers, pointing to the Policy’s failure to adequately address job precarity, ensure universal social security, and provide a clear legal framework for new forms of employment, potentially rendering its provisions as ’empty promises.’
Main Body in Multi-Dimensional Analysis
1. Economic Dimension
The Niti acknowledges the shift towards flexible contract work and aims to formalize it, which is vital as the Gig Economy is projected to employ over 2.35 crore people by 2030. However, critics argue it places the onus of social security contribution disproportionately on the workers and aggregators, rather than mandating a minimum floor wage or universal social security through state funds, potentially stifling the growth of nascent platform firms and burdening the workers themselves. The inclusion of AI-driven job facilitation is a key feature, intended to match workers to skills, but raises concerns about technological displacement and algorithmic management.
2. Legal/Governance Dimension
The policy must align seamlessly with the four Labour Codes (Code on Wages, Industrial Relations Code, Code on Social Security, and Occupational Safety, Health and Working Conditions Code). The key challenge lies in defining the ’employee’ vs. ‘worker’ status for gig and platform workers. While the Code on Social Security recognizes them as ‘unorganized workers,’ they are excluded from the ambit of the Code on Wages (minimum wage protection) and the Industrial Relations Code (right to collective bargaining), creating a legal vacuum and diluting their fundamental rights.
3. Social Justice and Welfare Dimension
A core principle of the Niti is ensuring Dignity of Labour and Gender Equity. The unorganized sector, especially in agriculture, construction, and domestic work, is overwhelmingly female. The policy proposes mechanisms to improve their working conditions, but falls short on specific, time-bound targets for creating safe, women-friendly workspaces and establishing accessible, state-run creches. The push for portability of social security benefits, while positive, is insufficient without assured floor-level benefits that cover health, pension, and life insurance.
Positives, Negatives, and Government Schemes
| Category | Description |
| Positives | Formal Recognition: Explicitly recognizes the existence of Gig and Platform Workers and the AI-driven future of work. Skilling Focus: Strong emphasis on re-skilling/up-skilling the workforce for industry 4.0. Portability: Focus on ensuring portability of benefits (e.g., PF, health insurance) across states and employers for migrant workers. |
| Negatives | Regulatory Gaps: Fails to clearly classify Gig workers as ’employees,’ denying them minimum wage and collective bargaining rights. Funding Burden: Relies heavily on a self-funding model (1-2% levy on aggregator turnover) for social security, which may be inadequate and passed onto consumers/workers. AI Risk: Does not provide adequate safeguards against algorithmic bias and job displacement by AI/automation. |
| Government Schemes | e-Shram Portal: National database for unorganized workers to facilitate social security schemes. Pradhan Mantri Shram Yogi Maan-dhan (PMSYM): Voluntary and contributory pension scheme for unorganized workers. Ayushman Bharat: Health insurance coverage for low-income families, including unorganized workers. |
Way Forward
- Guaranteed Social Security Floor: The government must transition from a contributory model to a universal, state-funded social security floor for all unorganized workers, covering basic health, accident, and pension benefits, leveraging the e-Shram Portal data.
- Legal Clarity and Rights: Amend the Social Security Code to mandate a minimum floor wage for all workers, including gig workers, and explicitly grant them the right to collective representation under the Industrial Relations Code.
- Digital and AI Governance: Establish an independent regulatory body to audit and manage the use of AI in labour management, ensuring transparency in algorithms and preventing discriminatory or exploitative practices (e.g., ‘robo-firing’).
- Strengthening Inspection and Enforcement: Invest heavily in a modern, IT-enabled labour inspection system to ensure compliance with the new Labour Codes, particularly regarding wages and working hours for the vulnerable workforce.
Conclusion
The Draft Shram Shakti Niti 2025 is a crucial step toward acknowledging the fundamental structural changes in India’s labour market. However, a transformative policy must move beyond mere recognition to ensuring substantive rights and universal security. To truly be a ‘Shakti’ (power) policy, it must be equitable, legally robust, and fully aligned with the constitutional vision of a welfare state, ensuring the dignity and economic security of every worker, regardless of their employment model.
Mains Practice Question
Q. The Draft Shram Shakti Niti 2025 attempts to formalize India’s labour market in the age of the Gig Economy and AI. Critically analyze the infirmities and legal gaps in the draft policy, and suggest a framework for ensuring universal social security and rights for all workers in the unorganized sector. (250 words)
2. India-Bhutan Bilateral Relations & Punatsangchhu-II Hydropower Project
Syllabus
GS-II: India and its neighborhood- relations. Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
Context
The Prime Minister’s recent visit to Bhutan, which coincided with the 70th birthday celebrations of the Fourth King of Bhutan, underscored the enduring nature of the “special relationship” between the two nations. A significant outcome highlighted in the Joint Press Release (PIB) was the progress on the Punatsangchhu-II Hydropower Project (PHEP-II). This project is a pillar of India’s development cooperation model, often referred to as a “win-win” partnership, contrasting with other regional development approaches. The visit aimed to strengthen ties across trade, digital cooperation, and energy security, which are vital for Bhutan’s economic stability and India’s ‘Neighbourhood First’ policy.
Main Body in Multi-Dimensional Analysis
1. Strategic and Geopolitical Dimension
Bhutan is crucial to India’s security interests, serving as a buffer state along a sensitive stretch of the border. India’s robust and consistent economic and military support is fundamental to maintaining a friendly, stable regime. The relationship acts as a model of non-reciprocal support, built on mutual trust. From a geopolitical standpoint, deepened India-Bhutan ties are essential for containing the growing influence of other major regional players who seek to engage Bhutan through infrastructural and strategic loans. The commitment to timely completion of projects like PHEP-II reinforces India’s reliability as a partner.
2. Energy and Economic Dimension
Hydropower cooperation is the bedrock of the bilateral economic relationship. Bhutan’s economy relies heavily on the sale of surplus hydro-electricity to India, which accounts for a substantial portion of its GDP. PHEP-II (1020 MW) is a run-of-the-river project designed to significantly boost this revenue stream. For India, this cooperation ensures a source of clean, renewable energy, contributing to its energy security and climate goals. The economic model is unique: India provides 70% loan and 30% grant financing, ensuring the project ownership and revenue flow remain with Bhutan, thereby promoting economic sovereignty.
3. Development and Cultural Dimension
India’s assistance spans across sectors like education, digital infrastructure (e.g., the Bhutan National Knowledge Network), and health, embodying the “South-South Cooperation” model. This development aid is demand-driven and non-interfering. The cultural aspect, rooted in shared Buddhist heritage and people-to-people exchanges, adds emotional depth to the strategic partnership. The visit’s focus on cultural and historical events, like the King’s birthday celebration, emphasizes the civilizational bond, moving beyond pure economics.
Positives, Negatives, and Government Schemes
| Category | Description |
| Positives | Mutual Security: Ensures a stable, friendly government in a strategically vital region. Clean Energy: Reliable supply of clean hydro-power for India. Economic Lifeline: Provides a primary revenue source for Bhutan, enabling its economic self-reliance. Non-Reciprocal Model: India’s grant-and-loan funding structure is highly attractive and supportive. |
| Negatives | Project Delays: Hydropower projects, including PHEP-II, have faced significant geological challenges, resulting in cost overruns and delays, affecting Bhutan’s national debt. Over-Dependence: Bhutan’s over-reliance on the hydro-sector makes its economy vulnerable to environmental factors and demand fluctuations in India. External Influence: Increased engagement by other regional powers may complicate the geopolitical dynamics and potentially impact India’s strategic interests. |
| Government Schemes | Project DANTAK: India’s Border Roads Organisation (BRO) for infrastructural development in Bhutan. Hydro-power Cooperation: Umbrella framework for joint development of hydro-projects. e-Sewa: Digital connectivity and IT cooperation programs. Scholarships/Training: Extensive training programs under the ITEC (Indian Technical and Economic Cooperation) for Bhutanese nationals. |
Way Forward
- Accelerated Project Completion: Focus on addressing geological and technical issues swiftly in PHEP-II and other pending projects to curtail cost overruns and debt burden on Bhutan.
- Economic Diversification: India should aid Bhutan in diversifying its economy beyond hydropower, promoting sectors like tourism, organic agriculture, and digital services to reduce economic vulnerability.
- Digital and Fintech Cooperation: Deepen linkages in the digital realm, such as connecting India’s Unified Payments Interface (UPI) with Bhutan’s payment systems, enhancing financial inclusion and trade.
- Security Dialogue: Maintain high-level, regular dialogue to coordinate on border security and regional issues, ensuring strategic alignment in the face of evolving geopolitical shifts.
Conclusion
The India-Bhutan relationship remains an exemplary model of bilateral partnership founded on shared values, strategic security, and economic cooperation. The commitment to the Punatsangchhu-II project signifies a renewed pledge to Bhutan’s prosperity and a reinforcement of India’s ‘Neighbourhood First’ commitment. While challenges like project delays and the need for economic diversification persist, the unique structure of India’s development model ensures the relationship’s vitality and strategic significance for both nations.
Mains Practice Question
Q. “Hydropower cooperation has served as the bedrock of India-Bhutan relations, but this over-reliance presents economic and geopolitical risks.” Analyze this statement in the context of recent bilateral engagements and suggest measures to diversify the strategic partnership. (250 words)
3. Global Climate Risk Index (CRI) 2025 & COP30 Stand
Syllabus
GS-III: Conservation, environmental pollution and degradation, environmental impact assessment. Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
Context
The release of the Global Climate Risk Index (CRI) 2025 by Germanwatch during the ongoing COP30 session in Brazil has brought renewed focus on India’s vulnerability to extreme weather events. While reports suggest India may have slightly improved its ranking (indicating fewer fatalities or economic losses relative to the past), the underlying exposure to risks like heatwaves, floods, and cyclones remains high. This development is intertwined with India’s strong diplomatic stance at COP30, where it insisted on maintaining the ‘architecture’ of the Paris Agreement, specifically pushing developed nations on climate finance and resisting any pressure to change the foundational principles of Common But Differentiated Responsibilities and Respective Capabilities (CBDR-RC).
Main Body in Multi-Dimensional Analysis
1. Environmental and Social Dimension
The CRI quantitatively measures the impacts of extreme weather events in terms of fatalities and economic losses (as a percentage of GDP). The social dimension reveals that the most vulnerable populations—coastal dwellers, agricultural labourers, and urban poor—bear the brunt of climate change, exacerbating existing socio-economic inequalities. For India, improved ranking, if any, often masks regional disparities. States like Assam, Bihar, and coastal regions continue to face structural vulnerability due to poor drainage, reliance on rain-fed agriculture, and high population density. The increasing frequency of cyclones and the severity of heatwaves pose direct threats to public health and food security.
2. Economic and Financial Dimension
The CRI highlights the significant economic toll of climate disasters. Losses to infrastructure, agriculture, and property divert crucial funds from developmental spending to relief and rehabilitation. The CRI serves as a warning for international investors, potentially impacting India’s credit ratings and insurance premiums. Therefore, a better ranking, while welcomed, must be sustained through tangible, climate-resilient infrastructure investments. On the global stage, India’s COP30 stand on climate finance emphasizes the need for developed nations to fulfill their $100 billion per year commitment and provide adequate resources for adaptation and Loss and Damage funding, crucial for a developing economy like India to manage these growing risks.
3. Governance and Diplomatic Dimension
India’s diplomatic position at COP30 is rooted in the principle of equity. India staunchly advocates that developed nations, historically responsible for the bulk of greenhouse gas emissions, must take the lead in deep emission cuts and provide technology transfer and finance. This resistance to changing the Paris Agreement architecture is a defense of CBDR-RC, preventing any undue burden on India’s developmental imperatives. Domestically, the CRI ranking influences the political discourse, putting pressure on governance mechanisms to improve disaster preparedness and implement effective Early Warning Systems (EWS) and resilience measures at the local level.
Positives, Negatives, and Government Schemes
| Category | Description |
| Positives | Diplomatic Clarity: Strong, unified stand at COP30 defending national interests and equity principle (CBDR-RC). EWS Improvement: Enhanced use of sophisticated EWS by agencies like IMD, leading to reduced loss of life in events like cyclones. Focused Adaptation: Increased state-level focus on climate-resilient agriculture and water management. Reduced Mortality: The CRI suggests successful efforts in minimizing disaster-related fatalities. |
| Negatives | Economic Losses: Despite better preparedness, economic damages (infrastructure, agriculture) remain high and pose a long-term fiscal risk. Vulnerability Persistence: The high population density and structural poverty mean fundamental vulnerability remains unchanged. Funding Gap: Global climate finance pledges remain unfulfilled, creating a significant adaptation funding gap for developing nations like India. |
| Government Schemes | National Action Plan on Climate Change (NAPCC): Umbrella framework for climate mitigation and adaptation strategies, including eight national missions. National Disaster Response Fund (NDRF): Financial mechanism for meeting the expenses on immediate relief for disasters. National Clean Energy Fund (NCEF): Supports projects aimed at promoting clean energy technologies. Coalition for Disaster Resilient Infrastructure (CDRI): Global initiative launched by India to promote climate-resilient infrastructure development. |
Way Forward
- Prioritizing Adaptation Finance: Internally, India must ring-fence dedicated budgetary allocations for climate adaptation projects, particularly in agriculture, water, and health, and leverage innovative financing mechanisms like green bonds.
- Strengthening Disaster Governance: Integrate climate risk data (like CRI) into district-level planning and urban infrastructure development, making climate resilience a mandatory component of project approvals.
- Active Diplomacy on Finance: Lead the Global South in pushing for a clear roadmap and verifiable targets for the post-2025 climate finance goal, ensuring it is a grant-based, new, and additional flow, not a relabeling of existing aid.
- Decarbonization Roadmap: Accelerate the transition to non-fossil fuel sources and invest in storage technologies (like VRFBs) to meet the Nationally Determined Contributions (NDCs), strengthening India’s moral authority at global climate talks.
Conclusion
The confluence of the Global Climate Risk Index 2025 and India’s assertive stand at COP30 underscores the dual challenge facing the nation: mitigating its own climate vulnerabilities while ensuring global equity in the climate response. A slight improvement in the CRI is merely a temporary reprieve; sustained risk reduction demands robust, localized adaptation efforts and adequate international financial support. By firmly defending the Paris Agreement’s equity principles and simultaneously boosting domestic resilience, India can solidify its role as a responsible and impactful global climate leader.
Mains Practice Question
Q. “India’s diplomatic stand at COP30, defending the Paris Agreement architecture, is a direct function of its domestic vulnerability as highlighted by indices like the Global Climate Risk Index.” Analyze the interplay between India’s climate vulnerability and its negotiating position on climate finance and CBDR-RC. (250 words)
4. Vanadium Redox Flow Battery (VRFB) Technology
Syllabus
GS-III: Science and Technology- developments and their applications and effects in everyday life. Achievements of Indians in science & technology; indigenization of technology and developing new technology. Infrastructure: Energy.
Context
The inauguration of India’s first MWh-scale Vanadium Redox Flow Battery (VRFB) at NTPC NETRA (Noida) marks a significant milestone in India’s quest for reliable, long-duration energy storage. This development, highlighted by PIB and media reports, is crucial for integrating the increasing share of intermittent renewable energy (solar and wind) into the national grid. VRFB technology, distinct from conventional lithium-ion batteries, offers a non-flammable and scalable solution essential for achieving grid stability and meeting the national goal of Net-Zero emissions by 2070.
Main Body in Multi-Dimensional Analysis
1. Technological Dimension
VRFB is an electrochemical storage device that stores energy in chemical form in two separate liquid electrolyte tanks (vanadium compounds). The electrolytes are pumped into a cell stack where a chemical reaction occurs to release/store energy. Unlike Lithium-ion batteries, the energy capacity (tank size) and power output (cell stack size) are independent, allowing for easy scalability. The battery’s chemistry enables it to be charged and discharged thousands of times without significant degradation over a 20+ year lifespan, making it ideal for long-duration storage (4-10 hours or more).
2. Energy Security and Environment Dimension
VRFBs address the major challenge of renewable energy—intermittency. By storing daytime solar power and dispatching it during peak evening demand, they eliminate the need for fossil fuel-based peaking plants. Crucially, vanadium is non-flammable and chemically stable, posing a significantly lower fire risk than lithium-ion. Furthermore, the electrolyte is almost entirely recyclable, boosting the sustainability credentials of this technology and reducing dependence on imports of critical minerals like lithium, strengthening India’s self-reliance (Aatmanirbhar Bharat) in the energy sector.
3. Economic and Manufacturing Dimension
The VRFB manufacturing process presents an opportunity for domestic industrial growth. While vanadium is a critical raw material (currently India is a net importer), the domestic exploration of vanadium reserves (e.g., in Arunachal Pradesh and Maharashtra) is essential. A key economic advantage is the decoupling of power and energy costs—the cost of energy storage is primarily the cost of the vanadium electrolyte, which retains its value over the battery’s lifespan. This long-term economic value makes VRFB a viable competitor for large-scale, utility-level grid applications.
Positives, Negatives, and Government Schemes
| Category | Description |
| Positives | Long-Duration Storage: Ideal for utility-scale grid applications (4-10+ hours), a gap Li-ion struggles to fill. Safety and Longevity: Non-flammable, non-degrading, with a lifespan exceeding 20 years. Scalability: Power and energy are scaled independently, making it flexible for large projects. Recyclability: Vanadium electrolyte can be almost fully reused, enhancing sustainability. |
| Negatives | Energy Density: Lower energy density than Li-ion, making it unsuitable for applications like electric vehicles (EVs). Vanadium Supply Chain: India currently relies on imports for most of its vanadium needs, making the initial cost high. System Size: Large footprint requirement due to the electrolyte storage tanks. Initial Cost: Higher upfront capital cost compared to established Li-ion technology. |
| Government Schemes | National Green Hydrogen Mission: Aims to position India as a global hub for Green Hydrogen, often stored and integrated with long-duration batteries. Production Linked Incentive (PLI) Scheme for ACC Batteries: While primarily for Li-ion, policy support may be extended to incentivize indigenous manufacturing of VRFBs. Solar Parks Scheme: Promotes large-scale renewable energy integration, requiring large battery storage solutions. |
Way Forward
- Securing Critical Minerals: Aggressively fast-track the domestic exploration and mining of vanadium reserves, and establish secured international supply chain agreements to reduce import dependency and volatility.
- Dedicated PLI for Non-Lithium Batteries: Launch a dedicated Production Linked Incentive (PLI) scheme specifically for non-Lithium advanced chemistry cells (ACC) like VRFB and sodium-ion to scale up indigenous manufacturing and drive down capital costs.
- R&D Focus: Increase R&D funding for improving the energy density and power output of VRFBs, particularly focusing on new electrolyte chemistries (e.g., iron-based) to reduce vanadium dependence and system footprint.
- Regulatory Mandates: Introduce regulatory mandates or financial incentives for utilities (DISCOMs/GENCOs) to incorporate a minimum percentage of long-duration storage (like VRFB) in their capacity procurement plans to ensure grid resilience.
Conclusion
The installation of the MWh-scale Vanadium Redox Flow Battery at NETRA is a pivotal moment, marking India’s conscious move toward diversifying its energy storage portfolio beyond lithium-ion. As India scales up its renewable energy capacity towards the 500 GW target, VRFB technology, with its inherent safety and long-life characteristics, is indispensable for grid stability and reliable power supply. Strategic investment in the domestic supply chain and targeted policy support are the next necessary steps to ensure that this technological leap truly secures India’s energy future and strengthens its position in the global green energy transition.
Mains Practice Question
Q. Discuss the technological advantages of Vanadium Redox Flow Batteries (VRFBs) over conventional Lithium-ion batteries in the context of utility-scale, long-duration energy storage. How can India leverage VRFB technology to enhance its energy security and achieve its Net-Zero goals? (250 words)
5. The Infirmities in the Special Integrated Roll (SIR) of Electoral Rolls
Syllabus
GS-II: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure. Salient features of the Representation of People’s Act.
Context
Recent editorial analysis in sources like The Hindu regarding the integrity of electoral rolls has brought the concept of the Special Integrated Roll (SIR) under scrutiny. The SIR is essentially the final, consolidated list of eligible voters in a constituency, based on regular updates and revisions. The current debate centers on the infirmities—specifically, the deletion of legitimate names, the inclusion of non-citizens, or discrepancies arising from linking electoral data with other databases (e.g., Aadhaar, which is voluntary)—that compromise the fairness and constitutional sanctity of the democratic process. The issue touches upon the core responsibility of the Election Commission of India (ECI) under Article 324 of the Constitution.
Main Body in Multi-Dimensional Analysis
1. Constitutional and Legal Dimension
The preparation and revision of the electoral roll are mandated by Article 326 (Universal Adult Franchise) and governed by the Representation of the People (RoP) Act, 1950. Section 21 of the RoP Act mandates annual revision, while Section 17 and 18 prohibit enrolment in more than one constituency and require every citizen to be enrolled only once. Infirmities in the SIR, such as arbitrary deletions of genuine voters, constitute a direct violation of the right to vote, which is both a statutory right and an essential component of the fundamental right under Article 19(1)(a) (freedom of expression). Judicial precedents, such as the Lal Babu Hussein case, stress the paramount need for an accurate roll.
2. Governance and Administrative Dimension
The ECI’s task of maintaining an accurate SIR is complex due to India’s massive, mobile, and multilingual electorate. The key administrative challenges include: (a) Migration: Difficulty in tracking genuine citizens who have moved residence. (b) Discrepancies: Errors arising from manual data entry, clerical mistakes, or flawed house-to-house verification processes. (c) Technological Integration: The process of linking voter IDs with Aadhaar (which is voluntary) is intended to deduplicate entries but risks creating unintended deletions or exclusions if data matching is flawed. The integrity of the Booth Level Officers (BLOs), who form the backbone of verification, is crucial.
3. Social Justice and Exclusion Dimension
Flawed electoral rolls disproportionately affect marginalized and mobile populations, including migrant workers, women (often listed simply as ‘wife of X’ rather than by name), and the homeless. For instance, arbitrary deletions often target low-income urban areas or slums, effectively disenfranchising the poor who lack the resources and awareness to challenge their exclusion in the revision process. This undermines the principle of inclusive democracy and can lead to the systematic political silencing of vulnerable groups, thereby impacting the quality of representation and the delivery of social welfare schemes that rely on residency data.
Positives, Negatives, and Government Schemes
| Category | Description |
| Positives | Annual Revision: Statutory mandate for regular revision ensures the roll is updated, including the registration of new eligible voters. Technological Integration: Efforts like E-Roll Management Systems and optional Aadhaar linking aid in cleaning and deduplication of the roll. Voter Awareness: Campaigns by the ECI (e.g., SVEEP) increase citizen participation in the revision and registration process. |
| Negatives | Exclusion Errors: Arbitrary or flawed deletion of legitimate voters due to administrative laxity or errors in data matching/verification. Inclusion Errors: Risk of non-citizens or ineligible voters being enrolled, particularly in border areas, raising national security and citizenship concerns. Lack of Transparency: Opaque processes for deletions/inclusions can lead to allegations of political manipulation or bias. |
| Government Schemes | Systematic Voters’ Education and Electoral Participation (SVEEP): Flagship program of the ECI for voter education and participation. National Electoral Roll Purification and Authentication Programme (NERPAP): Earlier drive aimed at cleansing the electoral roll of duplicate entries. ERONET: Dedicated portal for the management of the electoral roll. |
Way Forward
- Strengthening Ground Verification: Conduct mandatory re-verification of deletions by at least two separate BLOs and introduce a mandatory public notification period before any name is removed from the SIR.
- Clear Legal Protocol for Aadhaar: While linking Aadhaar is voluntary, the ECI must establish an unambiguous legal protocol that guarantees non-deletion of voters based solely on the absence of Aadhaar or mismatch of data.
- Addressing Migration and Mobility: Implement mechanisms for remote voting or simplified inter-state transfers of voter registration for migrant workers without requiring them to physically return to their native places for verification.
- Enhanced Transparency and Redressal: Make the draft and final SIR easily accessible online, alongside a transparent, quick, and efficient grievance redressal mechanism to allow citizens to contest their exclusion or inclusion errors with minimal administrative burden.
Conclusion
The integrity of the Special Integrated Roll (SIR) is the foundational pillar of India’s democratic legitimacy. While the ECI has made strides in technological and administrative efficiency, the persistence of exclusion errors and inclusion of non-citizens remain critical infirmities that challenge the principle of ‘one person, one vote.’ A truly inclusive and accurate SIR requires moving beyond mere technological fixes to ensure robust, transparent, and legally sound ground verification processes, thereby guaranteeing every eligible citizen their fundamental right to participate in the democratic exercise.
Mains Practice Question
Q. The integrity of the Special Integrated Roll (SIR) is crucial for a robust democracy. Analyze the administrative and legal infirmities that lead to exclusion errors in the SIR and suggest effective institutional mechanisms for the Election Commission of India to ensure universal and accurate enrolment. (250 words)
6. Credit Guarantee Scheme for Exporters (CGSE)
Syllabus
GS-III: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.1
Context
The Cabinet approval of the renewed Credit Guarantee Scheme for Exporters (CGSE), highlighted in a recent PIB release, signifies a strategic government effort to boost India’s exports amidst a challenging global economic environment. The scheme’s primary objective is to provide a comprehensive credit guarantee to banks and financial institutions, shielding them from the potential losses arising from advances given to exporters. This move aims to enhance the availability and affordability of working capital finance, thereby providing a vital safety net to Micro, Small, and Medium Enterprises (MSMEs) engaged in international trade, which are often susceptible to payment risks and global supply chain disruptions.
Main Body in Multi-Dimensional Analysis
1. Economic and Trade Dimension
The CGSE is fundamentally designed to address the “export credit gap,” ensuring banks have the necessary confidence to lend to exporters, especially those operating in high-risk markets or dealing with high-volume, low-margin goods. By reducing the risk weightage for export loans on bank balance sheets, the scheme promotes competitive pricing of credit. This increased access to working capital (pre-shipment and post-shipment credit) is directly correlated with higher export volumes and is crucial for meeting India’s ambitious global trade targets, contributing significantly to the GDP. The scheme is a crucial tool in managing the volatility caused by currency fluctuations and global economic slowdowns.
2. Banking and Financial Dimension
The scheme acts as a powerful financial intermediary, leveraging the government’s guarantee to de-risk the export financing sector. The guarantee mechanism encourages banks to look beyond traditional collateral-based lending, making credit available to first-time exporters and small businesses with limited fixed assets. This aligns with the broader goal of financial inclusion within the trade ecosystem. However, the scheme’s effectiveness depends on the efficiency of its claim settlement process. A streamlined and swift claim payment mechanism is essential to truly build trust and confidence among banks, preventing the accumulation of Non-Performing Assets (NPAs) arising from unforeseen defaults.
3. MSME and Employment Dimension
MSMEs are the backbone of India’s export sector, contributing significantly to both exports and employment. These smaller players are often the most vulnerable to counterparty default and global payment delays. By guaranteeing credit, the CGSE offers a shield, enabling MSMEs to take on larger, more complex international orders without the fear of crippling debt from credit defaults. The stable financial environment fostered by the scheme encourages MSMEs to invest in technology, skill development, and compliance with international standards, indirectly creating jobs and facilitating the formalization of the workforce involved in export-oriented manufacturing and services.
Positives, Negatives, and Government Schemes
| Category | Description |
| Positives | Risk Mitigation: Shields banks and financial institutions from up to 90% of losses on export advances, making lending safer. Increased Liquidity: Ensures a steady flow of working capital and term loans to exporters, especially MSMEs. Export Competitiveness: Lower interest rates on guaranteed loans make Indian products more price-competitive globally. Global Reach: Encourages exporters to explore high-risk but high-potential emerging markets. |
| Negatives | Moral Hazard: Over-reliance on the guarantee can create a moral hazard, leading banks to exercise less diligence in vetting creditworthiness. Fiscal Burden: In case of mass defaults, the government’s commitment could translate into a substantial fiscal burden on the exchequer. Awareness Gap: Many small and new exporters may be unaware of the scheme or find the application process complex. |
| Government Schemes | Export Credit Guarantee Corporation of India (ECGC): Provides credit insurance and guarantee services to exporters. Remission of Duties and Taxes on Exported Products (RoDTEP): Scheme to refund embedded taxes and duties to exporters. Trade Infrastructure for Export Scheme (TIES): Scheme to develop modern infrastructure for trade logistics. |
Way Forward
- Simplification and Digitalization: Simplify the claim process and ensure the entire CGSE operation is fully digitized, reducing bureaucratic hurdles and increasing the speed of disbursal and claim settlement for banks and exporters.
- Targeted Outreach: Launch aggressive outreach programs through industry associations and District Export Hubs to educate MSMEs and small exporters about the benefits and eligibility criteria of the scheme.
- Risk Monitoring and Review: Establish a robust monitoring framework to regularly assess the quality of underlying assets covered by the guarantee, ensuring banks maintain adequate lending standards and mitigating the moral hazard risk.
- Integration with FinTech: Explore partnerships with FinTech platforms to integrate the CGSE with automated credit evaluation and underwriting processes, ensuring faster and more inclusive credit access.
Conclusion
The revitalization of the Credit Guarantee Scheme for Exporters is a timely and critical intervention aimed at insulating India’s export engine from global headwinds. By effectively de-risking export credit for banks, the scheme promises enhanced liquidity and competitiveness for Indian exporters, particularly MSMEs. To fully realize its potential, the CGSE must be underpinned by administrative efficiency, robust risk management, and a dedicated focus on simplifying access for the smallest players, ensuring it translates directly into sustained, higher export growth and strengthens India’s global trade footprint.
Mains Practice Question
Q. Examine the necessity of the Credit Guarantee Scheme for Exporters (CGSE) in the context of global trade volatility and the role of MSMEs in India’s export basket. Discuss the potential challenges, including moral hazard, and suggest measures for its effective implementation. (250 words)
7. Graded Response Action Plan (GRAP-III) and Air Pollution Measures
Syllabus
GS-III: Conservation, environmental pollution and degradation, environmental impact assessment. Infrastructure: Energy.
Context
The imposition of GRAP-III (Graded Response Action Plan) in the Delhi-NCR region due to the air quality plummeting into the ‘Severe’ category, as reported by the Indian Express, underscores the perennial crisis of air pollution. GRAP is an emergency measure system categorized into four stages based on the Air Quality Index (AQI). The activation of GRAP-III requires stringent, non-reversible actions, including bans on certain construction activities and restrictions on specific vehicle types. The continuous reliance on such emergency measures highlights the failure of long-term, systemic solutions, prompting a debate on the efficacy of the actions mandated under GRAP and the need for deeper structural reforms across energy, transport, and industry sectors.
Main Body in Multi-Dimensional Analysis
1. Public Health and Social Dimension
Air pollution is a silent, chronic health crisis. Fine Particulate Matter ($PM_{2.5}$ and $PM_{10}$) penetrates the lungs and bloodstream, leading to increased cases of respiratory diseases, cardiovascular problems, and premature mortality. The imposition of GRAP-III directly impacts the livelihoods of daily wage labourers and construction workers due to activity bans, raising significant social justice concerns. While the measures are necessary to protect public health, their implementation must be accompanied by economic mitigation strategies for the most vulnerable populations affected by the bans. The social cost of reduced visibility, school closures, and general reduced productivity is immense.
2. Governance and Inter-State Dimension
Air quality management in the NCR requires seamless federal cooperation between the Union Territory of Delhi and the surrounding states (Haryana, UP, Rajasthan). GRAP’s implementation is often hampered by coordination failures, political finger-pointing, and differential enforcement standards across the region. The Commission for Air Quality Management (CAQM) is the statutory body responsible for enforcing GRAP, but its efficacy relies on the compliance and political will of the respective state governments. The inability to consistently curb cross-border pollution sources (like stubble burning) undermines all local efforts, necessitating a unified, legally binding regional action plan.
3. Technological and Industrial Dimension
GRAP-III typically mandates the closure of brick kilns and non-essential industrial activities using non-approved fuels. This highlights the need for a rapid shift towards cleaner industrial technologies. The long-term solution lies in technological upgrading—mandating industries to install De-SOx-ing (Sulfur removal) and De-NOx-ing (Nitrogen Oxide removal) systems in power plants and large industrial units. On the transport front, promoting the widespread adoption of BS-VI vehicles and a massive push for Electric Vehicles (EVs), alongside improving public transport infrastructure, is non-negotiable for sustained air quality improvement.
Positives, Negatives, and Government Schemes
| Category | Description |
| Positives | Emergency Control: Provides a structured, time-bound framework to arrest sudden spikes in pollution and protect public health. Clear Mandate: CAQM provides a single-point authority for regional enforcement. Awareness: Raises public awareness and dialogue around the severity of air pollution. Fuel Transition: Accelerates the transition to cleaner fuels (e.g., piped natural gas, PNG) in industrial areas. |
| Negatives | Reactive Approach: GRAP is an emergency, reactive measure, not a proactive solution to the root causes. Economic Impact: Bans under GRAP-III/IV cause significant economic losses to the construction, transport, and small industry sectors. Enforcement Gaps: Inconsistent implementation and political resistance in neighboring states dilute its effectiveness. Livelihood Disruption: Affects the livelihoods of daily wage workers without adequate compensation mechanisms. |
| Government Schemes | National Clean Air Programme (NCAP): Aims to achieve a 20-30% reduction in PM concentrations by 2024 (over 2017 levels) in 131 non-attainment cities. Ujjwala Yojana: Promotes the use of clean cooking fuel (LPG) to reduce household pollution. FAME-II Scheme: Promotes the adoption of Electric and Hybrid Vehicles. Periphery Expressways: Diverting non-destined commercial traffic away from Delhi. |
Way Forward
- Perennial, Year-Round Action: Transition from an emergency-only GRAP to a continuous, year-round enforcement of pollution control measures, including strict monitoring of industrial emissions and open burning.
- Structural Solutions for Stubble: Provide comprehensive financial and technological support to farmers for in-situ and ex-situ management of crop residue, making stubble-burning alternatives economically attractive and accessible.
- Integrated Regional Transport Policy: Implement a high-capacity, integrated public transport network across the NCR and introduce a scrappage policy for old, polluting commercial vehicles across all NCR states simultaneously.
- Fiscal Disincentives: Impose higher, stringent Environment Compensation Charges (ECC) on highly polluting vehicles and industries, linking the revenue directly to public health and clean air initiatives.
Conclusion
The recurrent activation of GRAP-III serves as a stark reminder that air pollution in the NCR is a systemic failure demanding structural remedies, not just temporary bans. While GRAP is essential for short-term mitigation, long-term success requires robust inter-state governance, mandatory technological upgrades in industry and energy, and a comprehensive, economically viable transition away from polluting sources. Only by making continuous, year-round air quality management a priority, backed by consistent political will and adequate financial resources, can India secure clean air as a fundamental right for its citizens.
Mains Practice Question
Q. The Graded Response Action Plan (GRAP) is often criticized as a reactive measure that fails to address the root causes of air pollution in the Delhi-NCR. Analyze the limitations of GRAP-III and suggest the necessary structural and governance reforms required for a sustainable, year-round solution. (250 words)
