Yojana Summary: July 2025 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

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Pm Mudra Yojana – A Decade of Hope, Opportunity, and Inclusivity

I. Introduction: A Decade of Empowerment

• Launch Year: April 2015
• Objective: Provide financial support to micro and small enterprises
• Significance: Fostered entrepreneurship, created jobs, promoted economic growth
• Reach (as of March 2025):
  • Rs. 33.32 lakh crore disbursed
  • 52.73 crore loan accounts
  • Culture of micro-entrepreneurship embedded across India

II. Case Study: Sima Rani Malakar – Symbol of Aspirational India

• Location: Shillong
• Background: Limited household income, ambition to provide quality education
• Action: Took Rs. 40,000 Shishu loan for a tailoring business
• Outcome: Improved income; children’s education in a quality school

III. Importance of MSMEs and Financial Inclusion

• MSME Role:
  • Drive economic growth, create employment, and increase exports.
  • Heterogeneous nature of MSMEs in India – from small artisans to technology-based startups
• Financial Inclusion Strategy:The GOI’s policy framework focuses on three pillars:
  • (i) Banking the unbanked
  • (ii) Securing the unsecured
  • (iii) Funding the unfunded
• The PMMY addresses the third pillar: funding the unfunded and providing microcredit at scale.

IV. Structure of PMMY Loans

• Loan Categories:
  • Shishu: Up to Rs. 50,000
  • Kishore: Rs. 50,001– Rs. 5 lakh
  • Tarun: Rs. 5.01– Rs. 10 lakh
  • Tarun Plus: Rs. 10.01– Rs. 20 lakh (new)
• Goal: Promote nuanced financial access for MSMEs, particularly underserved and informal sectors

V. Factors Behind PMMY’s Popularity

• Zero Collateral: No need for assets; backed by CGTMSE/CGFMU guarantees
• Competitive Interest Rates: Affordable for small businesses
• Flexible Repayment: Tailored EMIs based on business cash flows
• Digital Accessibility: Apply via banks or JanSamarth portal
• Broad Participation: Supported by PSBs, private banks, RRBs, SFBs, MFIs, NBFCs

VI. Performance Metrics

• Total Sanctioned (FY2025): Rs. 5.20 lakh crore
• Total Disbursed (FY2025): Rs. 5.09 lakh crore
• Cumulative (as of March 2025):
  • Sanctioned: Rs. 34.09 lakh crore
  • Disbursed: Rs. 33.32 lakh crore

VII. State-Wise Distribution

• Top 5 States (Cumulative Disbursement):
  • Tamil Nadu
  • Uttar Pradesh
  • Karnataka
  • West Bengal
  • Bihar
• Account for 46.3% of total disbursements
• Top PMMY states align with IME registration (via Udyam Assist Platform)

VIII. Loan Category Stats:

• Shishu Loans: 80% of accounts, 38% of value (till FY 2024)
• Kishore Loans: 18% accounts, ~38% of value
• Tarun Loans: 2% accounts, ~24% of value
• FY25 Distribution:
  • Shishu: 18.1%
  • Kishore: 50.9%
  • Tarun: 30.2%
  • Tarun Plus: 0.8%
• Loan Size Trend:
  • Rs. 39,405 (FY2016) → Rs. 81,108 (FY2024)
  • → Rs. 1.06 lakh (FY2025)
• Higher Ticket Size Loans: ‘Kishore’ + ‘Tarun’ loans increased from 57.2% (2016) to 82.7% (2025)

IX. Transformative Impact

• New Accounts (as of 31 Mar 2025): Rs. 10.56 lakh crore sanctioned to 10.97 crore new accounts (31% of total)
• Women Entrepreneurs: Rs. 14.85 lakh crore sanctioned (~44% of total)
• SC/ST/OBC Beneficiaries: Rs. 11.72 lakh crore (~34.5%)
• The PMMY contributes significantly to the empowerment of small entrepreneurs through accessible funding.
• Self-employment: Economic agency with strong rural penetration.
• Promotion of Informal Micro-Enterprises: Strengthens local economies and job generation.
• Job Creation: Supports micro-enterprises → high employment potential per unit turnover
• Access to Credit: Lower barriers for collateral-free loans
• Reduction in Economic Inequality: Gini Index Decline: Strong negative correlation (-0.84) with PMMY loan growth (Source: SIDBI)
• Multi-dimensional Poverty Reduction: Moderate Positive Correlation (0.44): Between PMMY disbursement and poverty reduction in top 10 states (2016–2021)

X. Challenges & Opportunities

• Under-penetrated States: High-population and North-Eastern states need more coverage.
• Awareness & Financial Literacy: Campaigns essential to increase reach and responsible borrowing.

XI. Role of MUDRA (SIDBI Subsidiary)

• Mandate: Facilitate seamless credit flow by refinancing PMMY loans
• Cumulative Refinance (as of 31 March 2025):
  • Sanctioned: Rs. 1.03 lakh crore
  • Disbursed: Rs. 1.00 lakh crore
  • Outstanding: Rs. 29,421 crore

XII. Conclusion: PMMY’s Legacy and Way Forward

• PMMY is more than a loan scheme — it’s a story of hope, inclusion, and opportunity
• Aligns with ‘Viksit Bharat’ vision by fostering grassroots entrepreneurship
• Going forward, the scheme holds the promise to further empower India’s aspiring entrepreneurs

Reimagining Entrepreneurial Skills

I. Genesis of Entrepreneurial Skilling in Rural India

Establishment of the first Rural Development & Self Employment Training Institute (RUDSETI) - 1982:

• Originated in Ujire, Karnataka.
• Joint initiative by Canara Bank, Syndicate Bank, and Sri Dharmasthala Manjunatheshwara Educational Trust.
• Aimed at rural entrepreneurial training through short-term courses (6 to 60 days) and long-term support (2 years).

Adoption by Government (2007-08):

• Model adopted as Rural Self Employment Training Institutes (RSETIs).
• Expansion to over 600 RSETIs nationwide.

II. RSETI Performance and Contributions

Training Reach:

• 55.53 lakh rural youth trained in various subjects.
• 73% settlement rate with 40.27 lakh youths starting businesses.

Financial Support:

• Bank linkages established for 20.40 lakh trained youth.

Broader Impact:

• The training empowers youth to become job creators.
• Stimulates rural economic development and inclusivity.

III. Evolving Entrepreneurship Ecosystem

• Technological Advancements:
• Emergence of AI, data analytics, online marketing platforms (e.g., GeM).
• Other Government Schemes:
• ESDP and PMEGP under the MSME ministry.
• Potential for synergies and multiplier effects.
• Inclusivity Imperative:
• Special focus required for women, tribals, differently-abled, ex-servicemen.
• New Enterprise Models:
• Gig economy, logistics, home-based enterprises.
• Demographic Pressure:
• 8 million youth enter the workforce annually.

IV. Need for a Paradigm Shift

• Challenges with Current RSETI Model:
• Limited course offerings, with only 60 available.
• Inadequate training reach per district ( 750-1000 /year).
• Marginalised communities underrepresented.
• Inaccessibility of training centres.
• Lack of provision for reskilling/upskilling.

V. Reforms for a Reimagined Skilling Ecosystem

• From Top-Down to Bottom-Up Planning:
• Skilling demand to be captured at the district level.
• Resource allocation based on actual demand.
• Community-Based Training:
• DAY-NRLM promoted Community Institutions to organise village-level training.
• Use of Community Managed Training Centres (CMTCs).
• Outsourcing training modules to Cluster Level Federations (CLFs).
• District-Specific Training Customisation:
• 4-5 focused trades per district based on local resources and market demand.
• Cluster development (e.g., banana fibre industries in banana-growing areas).
• Centres of Excellence (CoE):
• Select RSETIs to be developed as sector-specific CoEs.
• Linked with the Aspirational District Programme.

VI. Making Trainings More Accessible & Inclusive

• Flexible Training Schedules:
• Duration: 3-4 hours/day based on mutual agreement.
• Encouragement for women's participation.
• On-the-Job Training Focus:
• Conduct at master trainers’ work sites for immersive learning.
• Addressing Low-Return Trades:
• Investigate issues (e.g., outdated tech, poor design).
• Enhance marketability via aggregation and digital marketing.

VII. Empowering Master Trainers

• Recognition of Local Expertise:
• Community-identified master trainers.
• No rejection due to absence of formal certificates.
• Incentivising Trainers:
• Remuneration based on trade and training duration.
• Fosters trust and mentorship.

VIII. Supporting Growth-Oriented Enterprises

• Scale-Up Opportunities:
• Higher credit linkage and business development planning.
• Leverage schemes like PMMY, Stand-Up India, PMFME.
• Business Clinics:
• RSETIs to establish advisory platforms for mentoring.

IX. Up-skilling, Reskilling, and Higher Learning

• Paid Courses:
• For serious, already-trained candidates.
• Bridge to higher skilling institutes with mentoring support.
• Role of RSETIs:
• As hubs of innovation and incubation.
• Offer accelerator support for scalable enterprises.

X. Digital Marketing & Modern Platforms

• Shift from Physical to Online:
• Emphasis on digital-first marketing strategies.
• Utilisation of WhatsApp, Instagram.
• Marketing Sakhis & Fulfilment Centres:
• Community Resource Persons trained in digital marketing.
• Localised fulfilment hubs to manage logistics.

XI. Conclusion: Towards India@2047

• Vision:
• Align with the PM’s vision for a Developed India by 2047.
• Key Drivers:
• Scalable and inclusive skilling.
• Holistic support in training, mentoring, credit, and marketing.
• Outcome:
• Empowered rural youth and women.
• Thriving rural entrepreneurial ecosystem.

Role of Middle Class in India’s Prosperity

Middle Class Impact

I. Introduction: Origin and Significance of the Middle Class

• Historical Reference: The term “middle class” was likely first used by James Bradshaw in 1745 to stop Irish wool from going to France.
• Indian Context: India’s development is closely linked to support and policies aimed at the middle class. Their economic influence is well recognised, but their role in democracy and governance is equally important.

II. Political Significance and Theoretical Perspective

• Democratic Importance: Prof. Lester Thurow from MIT stated that a strong middle class is crucial for a healthy democracy. Without a middle class, society can become only rich and poor, which leads to instability and a lack of balance.

III. Defining the Middle Class in India

• No Official Definition: NCAER and PRICE define the middle class as households earning between Rs. 5 lakh and Rs. 30 lakh annually (FY 2020–21 prices). This corresponds to a daily income of $4.11 to $23.56, in line with global standards.
• Estimated Population: As of 2020–21, there were 43.2 crore people (31% of the population). By 2046–47, this is expected to rise to over 101 crore (61% of the population), supporting India’s aim of becoming a developed nation by 2047.

IV. Middle Class as Economic Growth Driver

• Empowerment Over the Decade: Economic and tax reforms have given the middle class more disposable income, leading to increased consumption that drives economic growth.
• Tax Contribution: The middle class pays a significant portion of both direct and indirect taxes, giving them considerable influence over fiscal policy.

V. Measures for Middle-Class Welfare in the Last Decade

• Direct Taxation Reforms: Lower burden and improved compliance.
• Income Tax Relief Measures:
  • Basic exemption raised from Rs. 2 lakh to Rs. 2.5 lakh (2014–19).
  • Tax rebate for incomes up to Rs. 3 lakh.
  • Tax rate reduced from 10% to 5% for the Rs. 2.5 – Rs. 5 lakh slab.
  • Standard deduction introduced at Rs. 40,000 (later raised to Rs. 50,000).
  • Section 80C deduction increased from Rs. 1 lakh to Rs. 1.5 lakh.
  • Interest deduction on home loans raised to Rs. 2 lakh.
• Interim Budget 2019–20 Highlights:
  • Full tax rebate for incomes up to Rs. 5 lakh.
  • Tax-free gross income up to Rs. 6.5 lakh with investments.
  • Estimated benefit: Rs. 18,500 crore to ~3 crore taxpayers.
  • Benefited Taxpayer Categories: Self-employed, small businesses, traders, salaried employees, pensioners, senior citizens.
• Additional Relief Measures:
  • TDS threshold on bank/postal deposits raised from Rs. 10,000 to Rs. 40,000.
  • Second self-occupied house exempt from notional rent taxation.
• New Regime (FY 2020–21 Onward):
  • Simpler, lower tax rates (forgoing exemptions/deductions).
  • Example: Income of Rs. 15 lakh taxed at Rs. 1.95 lakh (compared to Rs. 2.73 lakh under the old regime).
  • Encouraged more individuals to choose the lower-tax structure.
• Budget 2025–26 Highlights:
  • NIL tax slab raised to Rs. 7 lakh (and to Rs. 12 lakh under the new regime).
  • Salaried taxpayers receive relief up to Rs. 12.75 lakh due to a Rs. 75,000 standard deduction.
• Estimated Tax Benefits Under New Regime:
  • Income Rs. 12 lakh: Rs. 80,000 benefit (100% of payable tax).
  • Income Rs. 18 lakh: Rs. 70,000 benefit (30% of tax).
  • Income Rs. 25 lakh: Rs. 1.10 lakh benefit (25% of tax).
• Enhancing Taxpayer Experience:
  • Compliance Reforms:
    • Faceless Assessment: Removes direct contact between taxpayer and assessing officer.
    • Jurisdiction-less Assessment: No geographical link between taxpayer and officer, ensuring unbiased handling.
  • Results of Compliance Reforms: Individual ITR filings rose from 3.91 crore (2013–14) to over 9 crore (2024–25), indicating increased trust and ease in tax filing among the middle class.

VI. Boosting Consumption and Price Stability

• More Disposable Income: Enabled by tax cuts and deductions.
• Importance of Low Inflation: Keeps costs down and boosts confidence.
• Inflation Rates:
  • 2004–05 to 2013–14: Average inflation was 8.2%.
  • 2015–16 to 2024–25: Average dropped to 5%.
  • June 2025: CPI fell to 2.82% (a 75-month low).
• Monetary Policy Support: RBI’s repo rate reduced from 8% (2014) to 5.5% (2025), lowering loan costs and enhancing household consumption.

VII. Social Security for Government Pensioners

• Reforms in Pension System: NPS employer contribution increased from 10% to 14% (for central government employees).

Unified Pension Scheme (UPS) from April 2025

• 50% assured pension based on the last 12 months’ average basic pay (after 25 years of service).
• Proportionate pension for shorter tenures; minimum pension: Rs. 10,000/month.
• Death benefits: 60% of the pension will go to the family.
• Estimated beneficiaries: 23 lakh Central Government employees + 90 lakh under the National Pension System (NPS) (including states).

Housing for the Middle-Class

Pradhan Mantri Awas Yojana – Urban (2015 Onward)

• Central assistance committed: Rs. 1.97 lakh crore; released: Rs. 1.69 lakh crore.
• As of May 2025:
  • 1.16 crore houses sanctioned.
  • 1.12 crore under construction.
  • 92.72 lakh completed/handed over.

Affordable and Green Electricity

PM Surya Ghar: Muft Bijli Yojana

• Rooftop solar subsidy: 60% for 2kW capacity for middle/low-income households.
• Special subsidies for UTs/special category states.

Collateral-free concessional loans:

• Interest: Repo + 0.5% (currently 6.75%).
• Tenure: 10 years.
• Amount: Up to Rs. 2 lakh.
• Seamless application via Jan Samarth portal.

Connectivity and Mobility Improvements

Urban Metro Expansion

• Metro operational in 29 cities.
• The metro network grew from 248 km in 2014 to 1,013 km by 2025.
• Daily ridership: 28 lakh (2013–14) to 1.12 crore (2025).
• Annual budget: Rs. 5,798 crore (2013–14) to projected Rs. 34,807 crore for 2025–26.

UDAN Scheme: Affordable Regional Air Travel

• Launch: 21 October 2016.
• Connected: 88 airports, 13 heliports, 2 water aerodromes.
• Routes: 625.
• First flight: Shimla to Delhi (April 2017).
• Passengers served: 1.49 crore+.
• Airport network: 74 (2014) to 160 (2025).
• Fund support: Rs. 4,023.37 crore.
• Benefits: Boosted tourism, trade, health-care access, and regional growth.

Key Measures for Income Tax Compliance Simplification

• Form 26AS Revamp:
  • Includes TDS, SFT transactions, and demand/refund details.
  • Encourages accurate self-reporting.
• Pre-filled ITRs:
  • Auto-fills data like salary, interest, dividends to reduce errors.
• Updated Return (Section 139(8A)):
  • Allows revision within two years.
  • Enables disclosure of unreported income.
• Corporate Tax Reduction:
  • Gradual cuts since 2016 to expand tax base and remove exemptions.
• Simplified Personal Taxation:
  • Lower slab rates with an exemption-free regime (from 2020, 2024).
• Expanded TDS/TCS Scope:
  • Includes large cash withdrawals, foreign remittances, e-commerce, real estate, luxury items, virtual assets, gaming, etc.
• The government’s reforms over the past decade have empowered India’s middle class.
• Through fiscal incentives, compliance easing, affordable housing, pension security, green energy, and better urban mobility, the middle class is poised to play a central role in achieving the vision of Viksit Bharat by 2047.
• Their growing share in population and economy positions them as the engine of inclusive, democratic, and sustainable development.

Panchayati Raj Institutions: Empowering Rural Women

Empowering Women

Introduction: Status of Women Globally

• Women constitute about 50% of the global population.
• However, they earn only 10% of the total global income.
• Women own a mere 1% of the world’s production resources.
• Approximately 70% of women live below the poverty line.
• Two-thirds of women lack access to basic education.
• Therefore, women’s empowerment is crucial for socio-economic development.

II. Evolution of Panchayati Raj and Women’s Role

Historical Background

• Panchayats have traditionally functioned as village councils.
• Mahatma Gandhi advocated for Gram Swaraj and the decentralization of governance.

Legal Foundation

• The Constitution (73rd Amendment) Act, 1992 laid the groundwork for a three-tier Panchayati Raj system.
• This system was implemented on 24 April 1993, promoting grassroots democracy and participation, particularly for women.

III. Provisions for Women in the Act

• Reservation Clause: Women are entitled to at least 1/3rd of seats in Panchayats, including those for SC/ST/OBC.
• Chairperson Positions:1/3rd of chairperson roles at all Panchayat levels are reserved for women.
• Seat Rotation: The reservation is rotated among different Panchayats.

IV. Women’s Participation in Panchayats

Progress since the 1992 Amendments

• The reservation for women has significantly empowered them.
• In 14 states, women’s representation in Panchayats ranges from 50% to 58%.
• Jharkhand leads with 59% representation, followed closely by Rajasthan and Uttarakhand.

Data on Representation

• 2015 Panchayat Elections:
• Total Elected Representatives: 29,17,334
• Women Elected Representatives: 13,41,773 (approximately 46% ).

State-wise Highlights

• Uttar Pradesh: 19,992 women Sarpanches, constituting 34% of the total.
• Odisha: 3,600 women Sarpanches, making up 58% of the total.
• Manipur: Only 2% women Sarpanches, the lowest in the country.
• Broad-based Roles: Women participate at all levels, from laborers to policymakers, in both elected and non-elected capacities. Reservations have encouraged their attendance in meetings and idea-sharing.
• Agents of Social Change: Women are increasingly speaking out against injustices and abuses, with the influence of coercive and patriarchal structures in rural politics diminishing. Their awareness of rights and authority is on the rise.
• Decline in Domestic Violence: More women Sarpanches lead to increased reporting and seeking of justice for domestic violence.
• Weakening of Caste and Patriarchy: The dominance of upper-caste males is gradually declining, with the PRI system moving towards participatory democracy.
• Political Identity: The 73rd and 74th Amendments have transformed household women into political figures, breaking traditional barriers regardless of being proxies.

V. Difficulties Faced by Women Elected Representatives

• Proxy Politics: Men, particularly husbands, often dominate decision-making.
• Lack of Political Awareness: Due to illiteracy and limited exposure, women lack political awareness.
• Negative Public Perception: There are widespread doubts about women’s leadership capabilities.
• Low Education Levels: Women’s low education restricts their involvement in complex governance matters.
• Lack of Capacity Building: There is a shortage of training and refresher courses for women.
• Male Dominance in Panchayats: Women’s suggestions are frequently disregarded in Panchayati meetings.
• Violence Against Women Politicians: There is a rising trend of politically motivated attacks on women politicians.

VI. Suggestions for Improving Women’s Participation

• Electoral Reforms: Ensure free and fair electoral processes.
• Awareness and Education: The government should conduct political awareness programs and educate rural women about their rights, duties, and governance. Regular training and refresher courses should be organized at block and district levels to inform women about government schemes, administrative procedures, and budget planning.
• Incentivization: Recognize and reward outstanding women members with awards and financial incentives.
• Longer Tenure for Reserved Seats: Implement a minimum tenure of 10 years for reserved seats to allow women leaders to gain experience and influence governance effectively.
• Structural Support: Provide additional financial, administrative, and political support to women in Panchayati Raj. Conduct research and development to assess performance and enhance mechanisms.

VII. Role of PRIs in Addressing Social Evils

• Women in PRIs have played a crucial role in addressing various social evils, including:
• Alcoholism
• Dowry system
• Child marriage
• Domestic violence
• Untouchability
• Class and caste conflict
• Rise of Self-Help Groups (SHGs): Women have started SHGs under PRI leadership to empower themselves through income-generating activities.
• MGNREGA and similar schemes: These initiatives assist women in achieving economic independence and improving their living standards.

VIII. Conclusion

• The 73rd Constitutional Amendment has significantly transformed rural India by integrating women into political frameworks.
• Women have emerged as leaders, problem solvers, administrators, and change agents in their communities.
• Despite facing numerous challenges, their increased participation marks a positive and enduring shift in democratic development.

The Shift Towards Gender Budgeting

The traditional approach to budgeting often operates under the assumption of gender neutrality, failing to recognize the distinct needs and contributions of different genders. This oversight can perpetuate existing inequalities and hinder progress.

• Gender Budgeting (GB) has emerged as a transformative policy tool that seeks to integrate gender perspectives into the planning and budgeting processes. By challenging the notion of fiscal neutrality, GB assesses the impact of budgets across genders, promoting transparency, equity, and accountability.
• The implementation of Gender Budgeting has shown promising outcomes, including increased workforce participation and entrepreneurship among women, enhanced intergenerational human capital, and contributions to building resilient economies.

  Empowering Women for a Resilient Future  

  Gender budgeting is a strategic framework that aims to integrate gender analysis into public financial management, promoting inclusive, responsive, and equitable development.  

  The evolution of gender budgeting in India began in the late 1990s and was formally supported in 2001, with the introduction of the Gender Budget Statement (GBS) in 2005-06.  

  The Union Budget for 2025-26 has witnessed a significant increase in the Gender Budget, reflecting a commitment to mainstreaming gender in public expenditure and aligning with Sustainable Development Goal 5.  

  Components of the Gender Budget Statement include Part A (100% Women), Part B (30-99% Women), and Part C (Less than 30% Women), each targeting specific programmes and initiatives.  

  Rural development initiatives such as MGNREGA and PMAY-G have been allocated significant funds to promote gender equity and empower women in rural areas.  

  Skill development and entrepreneurship programmes aim to empower millions of women with digital and employability training, fostering entrepreneurship through initiatives like the Mudra Plus Initiative.  

  The Gender Budgeting framework represents a shift towards integrating gender perspectives in public expenditure, aligning with global commitments to gender equality and sustainable development.  

Rs. 5,000 crore Fund for Women-Led Enterprises

Women-Led Empowerment

• This fund aims to support and promote businesses led by women.

Digital Enablement

• Integration with BharatNet: Connecting digital initiatives with the BharatNet project to enhance internet connectivity.
• Digital Skilling Programmes: Implementing training programs to improve digital skills, which are essential for economic participation.

Gender-Responsive Governance and Accountability

• Institutional Framework: Strengthening the framework for gender budgeting within the Union Budget.
• Need for Coherence and Accountability: Emphasizing the importance of coherent policies, outcome-focused approaches, and accountability in gender budgeting.
• Alignment with Global Goals: Ensuring alignment with Sustainable Development Goals (SDGs) 5 and 8.
• SDG India Index: Using the NITI Aayog’s SDG India Index to measure progress towards sustainable development goals.
• Challenges and Recommendations: Addressing the gap between policy intent and implementation.
• Need for Intersectional Monitoring: Advocating for data-driven monitoring that considers intersectional factors.
• Forward Path: Highlighting the importance of capability building alongside welfare.
• Transforming Gender Budgeting: Aiming to make gender budgeting a more effective tool for promoting equity and resilience.

Conclusion

• Gender budgeting signifies a significant shift in India’s approach to development planning.
• It empowers women as key players in economic transformation.
• The approach aligns national development with goals of inclusivity and equitable growth.
• Ultimately, it lays the groundwork for a resilient society driven by capabilities.

A Silent Storm: Why India Must Act on Nitrogen Pollution and Climate Change

Nitrogen and the Planetary Crisis

• Pollution
• Biodiversity Loss
• Climate Change

Reactive Nitrogen in South Asia

• Ammonia (NH3)
• Nitrate (NO3-)
• Nitrous Oxide (N2O)
• Nitrogen Oxides (NO2)

Nitrous Oxide (N2O)

• N2O is a potent greenhouse gas, being 300 times more effective than CO2 in trapping heat.

South Asia as a Nitrogen Pollution Hotspot

• Intensive agricultural practices combined with poor waste management lead to significant nitrogen overload.
• South Asia’s high population density increases environmental pressure.

India at the Centre of the Nitrogen Crisis

• Key Role: India, with its vast population and agricultural output, is crucial in addressing nitrogen pollution.
• Challenges:. report highlighted India as a global hotspot for nitrogen pollution due to its practices.

Factors Contributing to the Crisis

• Low Nitrogen Use Efficiency (NUE): Farmers are not using nitrogen efficiently, leading to excess application.
• Excessive Use of Urea: There is a heavy reliance on urea, a nitrogen-rich fertilizer, without considering soil needs.
• Unregulated Livestock and Waste Emissions: Emissions from livestock and waste are not effectively controlled, contributing to nitrogen pollution.

Fertiliser Use and Environmental Impact

• Nitrogen Application: India applies around 17 million tonnes of nitrogen annually.
• Crop Absorption: Only 33% of this nitrogen is absorbed by major crops like rice and wheat.
• Environmental Losses: 66% of nitrogen is lost to the environment through leaching, runoff, and volatilization.

Regional Nitrogen Surpluses

• Punjab: 234 kg N/ha/year (2017)
• Haryana: 276 kg N/ha/year
• Other States: Bihar, Telangana, Andhra Pradesh, West Bengal

Effects of Interstate Trade

• Crop Trade: High-nitrogen states like Punjab and Haryana trade crops to deficit states.
• Emission Contributions: 42.8 Gg N/year from domestic rice/wheat trade, with 70% from Haryana, Punjab, Chhattisgarh, and Andhra Pradesh.

Fertiliser Practices and Soil Health

• Soil Testing: 70% of farmers use fertilisers without soil testing.
• Excess Nitrogen Application: 55% of rice farmers apply 18 kg N/ha more than necessary without yield benefits.

Nitrate Pollution in Water Sources

• Nitrate levels in Punjab, Haryana, and Western UP exceed WHO safety standards.
• Haryana: Average well water nitrate level of 99.5 mg/L, exceeding the WHO limit of 50 mg/L.

Environmental and Governance Issues

• Air and Water Pollution: Nitrogen pollution contributes to air and water quality degradation.
• Biodiversity and Ozone Impact: Accelerates biodiversity loss and ozone depletion.
• Governance Gaps: There are deficiencies in addressing nitrogen and phosphorus pollution at global and national levels.

Regulatory Actions in India

• Emission Monitoring: Fertiliser industries must adhere to 24x7 Continuous Emission Monitoring System (CEMS) standards.

Agricultural Practices Promotion

• ICAR Initiatives: Promotion of neem-coated urea, soil test-based nutrient management, and the 4R principle (Right Source, Rate, Time, and Place).
• Soil Health Card Scheme: Guides farmers on balanced fertiliser use based on soil health.

Urban Nitrogen Pollution Management

• AMRUT and Clean Ganga Mission: Aims to modernise sewage systems to reduce nitrogen pollution.
• BS-VI Norms: Implementation of BS-VI vehicle norms and fuel upgrades to lower NOx emissions.

Integrated Action for Nitrogen Pollution

• Climate Benefit Potential: Controlling nitrogen pollution could contribute to 5-10% of global GHG reduction targets.
• NDC Gaps: India’s Nationally Determined Contributions (NDCs) do not explicitly address nitrogen pollution.
• International Comparisons: Learning from China’s zero fertiliser growth target, the EU’s Nitrates Directive, and Sri Lanka’s fertiliser ban experience.

Comprehensive Strategy Outline

• Strengthen Partnerships Across Agriculture: Collaborate with ICAR, KVKs, and private innovators, focusing on high-pollution areas like the Gangetic basin.
• Support States and Rural Communities: Adopt a “One Water” approach, promote biofertilisers, drip irrigation, and decentralised waste management.
• Leverage Environmental Laws: Use Water and Environment Protection Acts to establish nitrate standards and introduce basin-level pollution caps.
• National Nitrogen Mission: Encourage inter-ministerial coordination, set targets for NUE improvement, N2O emission reduction, and enhancing soil and water quality, and fund research and pilot projects.

1. Integrate Nitrogen into Climate Policy

• Set specific targets to attract international climate finance
• Include N₂O in NDCs

2. Reform Fertiliser Subsidies

• Current spending: Rs. 2 lakh crore/year (mostly urea)
• Shift to Direct Benefit Transfers (DBT) linked to soil data
• Utilise slow-release urea
• Incorporate neem/sulphur-coated fertilisers
• Promote biofertiliser use

3. Tighten Regulation in Pollution Hotspots

• Impose stricter nitrogen caps in states like Punjab and UP
• Use river basin authorities to enforce digital tracking and compliance
• Provide farmer advisory and transition support
• Promote Integrated Nutrient and Soil Management
• Use data from Soil Health Cards via mobile tools and geo-tagging
• Adopt crop rotations, conservation agriculture, and N-efficient varieties
• Incorporate the 4R principle in farmer training programmes to promote better practices.
• Create Nitrogen Management Hubsand promote remediation technologies:
  • Constructed wetlands
  • Bioreactors
  • Reactive barriers

4. Public Awareness and Incentives

• Campaigns on health and environmental impacts of overuse
• Certification schemes for “Low-Nitrate Vegetables ”
• E-commerce integration
• Utilise precision agriculture tools (sensors, dashboards, meters)

5. Scale Research and Traditional Knowledge

• Invest in nitrogen R&D via ICAR, IITs, agri-universities
• Develop:
  • Smart crop varieties
  • Diagnostic kits
  • Real-time tracking tools
• Merge traditional wisdom (e.g., organic enrichment) with science

Conclusion: Turning Crisis into Opportunity

• Nitrogen. A Miracle Nutrient or a Menace?
• Judicious use can:
  • Enhance food security
  • Reduce environmental degradation
• India’s Progress
  • There has been a good start with regulatory reforms, subsidies, and international engagement.
  • Need for more integrated and urgent action
• Call for National Nitrogen Strategy
  • Establish National Nitrogen Mission
  • Integrate into climate commitments
  • Reform incentives and empower farmers
• Opportunity for Leadership
  • Improved nitrogen use = win-win for:
  • Crop productivity
  • Climate action
  • Public health
  • Fiscal efficiency
  • Let India lead in making this invisible crisis a global policy priority.

India’s Digital Decade

Digital Transformation and Economic Impact

• Digital Economy: India is transitioning into a digitally empowered society and a knowledge-driven economy.
• In 2022–23, the digital economy accounted for 11.74% of the national income, with projections to increase to 13.42% by 2024–25.
• This growth is fueled by advancements in AI, cloud computing, and digital infrastructure.

Connectivity and Infrastructure

• Telecom Expansion: Urban telecom connections have increased from 555.23 million in 2014 to 661.36 million in 2024.
• Overall tele-density has risen from 75.23% in 2014 to 84.49% in 2024.
• Rural telecom connections have grown from 377.78 million in 2014 to 527.34 million in 2024.
• Internet and Broadband Penetration: The number of internet users has surged from 25.15 crores in 2014 to 96.96 crores by June 2024, marking a growth of 285.53%.
• Broadband connections have skyrocketed from 6.1 crores in 2014 to 94.92 crores in 2024, reflecting a staggering increase of 1452%.
• 4G connectivity is now available in 615,836 out of 644,131 villages.
• 5G and High-Speed Connectivity: The rollout of 5G technology began in October 2022, with 4.74 lakh 5G Base Transceiver Stations (BTS) installed within 22 months, including 2.95 lakh BTSs set up in 2023–24.
• Currently, 99.6% of districts are covered by 5G, with projections indicating the mobile subscriber base could reach 116 crore by 2025.
• The cost of data has significantly decreased from Rs 308 per GB in 2014 to Rs 9.34 per GB in 2022.
• BharatNet Project: As of January 2025, 2.18 lakh Gram Panchayats have been connected under the BharatNet project.
• A total of 6.92 lakh km of optical fibre cable (OFC) has been laid to provide high-speed internet access to remote and rural areas.

Digital Finance and Inclusion

• Unified Payments Interface (UPI): UPI has seen tremendous growth, with 1,867.7 crore transactions worth Rs 24.77 lakh crore recorded in April 2025.
• The platform is used by 460 million people and 65 million merchants across India.
• India accounted for 49% of global real-time digital transactions in 2023, according to the ACI Worldwide Report.
• UPI is now accepted in several countries, including the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius.
• Aadhaar-based e-KYC: The Aadhaar system has simplified banking, public services, and verification processes.
• As of April 2025, 141.88 crore Aadhaar IDs have been generated.
• Direct Benefits Transfer (DBT): The DBT system has saved over Rs 3.48 lakh crore by removing fake beneficiaries from 2015 to 2023.
• The total amount transferred through DBT has reached Rs 44 lakh crore as of May 2025.
• Cleanup actions included the removal of 5.87 crore ineligible ration cards and the cancellation of 4.23 crore fake LPG connections.

Digital Commerce and Government Procurement

• Open Network for Digital Commerce (ONDC): The ONDC initiative aims to democratise e-commerce, making it accessible for Micro, Small, and Medium Enterprises (MSMEs) and local sellers.
• As of January 2025, ONDC is active in 616+ cities, with over 7.64 lakh sellers and service providers registered on the platform.
• Government e-Marketplace (GeM): The GeM platform facilitates online procurement for public departments, streamlining the purchasing process.
• In the fiscal year 2024–25, the Gross Merchandise Value (GMV) of GeM reached Rs 4.09 lakh crore, reflecting nearly 50% year-on-year growth.
• The GeM network comprises over 1.6 lakh buyers and 22.5 lakh sellers, contributing to the platform's expanding ecosystem.

e-Governance and Citizen Empowerment

• Karmayogi Bharat + IGOT: This initiative is part of Mission Karmayogi, aimed at enhancing the capacity and skills of civil servants in India.
• Over 1.07 crore civil servants have been onboarded onto the platform, which offers a range of courses and training programs.
• The platform features 2,588 courses and has issued 3.24 crore certificates to participants who have completed various training programs.
• DigiLocker: DigiLocker is a digital initiative that provides secure storage for important documents and certificates.
• As of April 2025, DigiLocker has 51.6 crore registered users, with a significant increase of 9.42 crore users joining between January and June 2025.
• UMANG (Unified Mobile Application for New-age Governance): UMANG is a mobile application that offers access to various government services and information.
• As of May 2025, UMANG has 8.21 crore users and has facilitated 597 crore transactions.
• The application hosts over 2,300 government services available in 23 languages, making it accessible to a wide audience.

Digital Capacity Building

• Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA): Launched in 2017, PMGDISHA aims to make 6 crore rural individuals digitally literate.
• As of March 2024, 6.39 crore individuals have been trained under the program, with 4.77 crore receiving certification.
• Training is conducted through 5.34 lakh Common Service Centres (CSCs) located in 2.52 lakh Gram Panchayats.
• NIELIT Deemed University: This initiative aims to skill 37 lakh individuals over a period of five years in various digital competencies.
• Skill Development in the ESDM Sector: This program has trained 4.93 lakh individuals, with 3.74 lakh receiving certification and over 1.37 lakh jobs created in the sector.
• FutureSkills Prime: An initiative that has over 22 lakh individuals signed up, with 5.3 lakh completing courses in various digital skills.
• ISEA Project: Under this project, 95,206 individuals have been trained, and 31 awareness sessions have been conducted to promote digital literacy and skills.
• Chips to Start-up (C2S): This initiative has supported 113 organisations, trained 58,652 individuals, and filed 26 patents in the field of semiconductor and digital technologies.
• Visvesvaraya PhD Scheme: This scheme has assisted 2,039 PhD candidates in pursuing their research, including 1,619 full-time and 420 part-time candidates.

Language Access and Inclusion

• BHASHINI (National Language Translation Mission): BHASHINI is an AI-powered platform aimed at overcoming language barriers in accessing digital content and services.
• The platform facilitates multi-lingual access to digital resources, making it easier for users to interact with and benefit from online services in their preferred languages.
• BHASHINI is managed by the Ministry of Electronics & IT, reflecting the government's commitment to promoting language inclusivity in the digital space.

Strategic Technology Missions

• National Quantum Mission:The mission focuses on various objectives in quantum technology, including:
  • Developing quantum computing capabilities with 20–1000 qubits.
  • Establishing satellite-based quantum communication over distances exceeding 2,000 km.
  • Implementing inter-city Quantum Key Distribution (QKD) for secure communication.
  • Creating multi-node quantum networks for enhanced connectivity.
  • Advancing the development of quantum sensors, clocks, and materials.
• The Defence Research and Development Organisation (DRDO) is involved in leading defence-related quantum technology initiatives through its Quantum Technology Research Centre (QTRC) as part of the broader National Quantum Mission.

IndiaAI Mission

• Allocation: Rs 10,371.92 crore (2024–29)

Focus Areas

• Computing Capacity
• Innovation Centres
• Datasets
• Applications
• Future Skills
• Startup Finance
• Safe AI

As of May 2025, India is equipped with around 34,000 GPUs.

India Semiconductor Mission

• Allocation: Rs 76,000 crore

Objectives

• Establish Semiconductor Fabs
• Develop Display Fabs
• Advance Photonics Technology
• Enhance ATMP/OSAT Capabilities

Support:

• 50% Fiscal Support
• Design Incentives

Achievements:

• 6 Manufacturing Projects Approved
• Over Rs 1.55 Lakh Crore Investment

Notable Initiative:

• Joint Venture between HCL and Foxconn to establish a Chip Plant near Jewar Airport, Uttar Pradesh.

Future Outlook

• By 2030, the digital economy is projected to contribute around 20% to India’s GDP.
• India is positioning itself as a Global Leader in the Digital Space.
• Technological advancements are not only transforming services but also driving growth, fostering innovation, and enhancing global competitiveness.

Anti-Emergency Movement Reaffirmed the Vitality of Preserving Our Democratic Framework - PMI

Context and Significance

• 50 Years Since the Emergency: This topic marks 50 years since the Emergency declaration on June 25, 1975, a difficult time in India’s democratic history.
• Prime Minister Narendra Modi paid tribute to those who opposed the Emergency, describing it as a period of serious constitutional breaches.
• Samvidhan Hatya Diwas: June 25 is now known as Samvidhan Hatya Diwas (Constitution Killing Day), reminding people of the violation of basic democratic principles.
• PM Modi pointed out how this time saw the suspension of rights, press freedom, and the imprisonment of dissenters.
• Call to Action: The PM encouraged citizens, particularly those who experienced the Emergency, to share their stories with younger generations.
• This initiative aims to increase awareness of the significance of constitutional values and the threats posed by authoritarian rule.

Prime Minister’s Statements (Social Media Posts)

• First Post: Described the Emergency as “one of the darkest chapters” in India's democracy.
• The Constitution was ignored, fundamental rights were suspended, and press freedom was suppressed.
• Citizens from various sectors, including political, social, and educational, were imprisoned.
• Second Post: Reminded how Parliament was silenced and the judiciary was controlled.
• Highlighted the 42nd Amendment as a serious attack on the Constitution.
• Emphasised the suffering of the poor and marginalised.
• Third Post: Saluted the diverse group of people who fought against the Emergency.
• Noted that citizens from different beliefs came together to defend democracy.
• Their united resistance resulted in new elections in 1977, which the ruling party lost.

Constitutional Amendments During the Emergency

• 8th Amendment Act (1975): Prevented courts from questioning the President’s decision to declare emergency.
• 39th Amendment Act (1975): Stopped judicial review of elections for President, Vice President, Prime Minister, and Lok Sabha Speaker.
• 42nd Amendment Act (1976): Seen as the most extensive and controversial.
• Prioritised Directive Principles over Fundamental Rights.
• Reduced the powers of the Supreme Court and High Courts.
• Restricted judicial review of constitutional amendments.
• Extended the legislature's term from 5 to 6 years.

Suppression of Freedom of Expression

• (i) Media Censorship: On June 26, 1975, pre-censorship was imposed on all newspapers.
• Editors had to get government approval before publishing content.
• Regional and national censors were appointed to oversee press material.
• Radio-photo transmissions also required government clearance.
• (ii) Press Restrictions: On July 5, 1975, foreign correspondents' telex messages were monitored and limited.
• On July 20, 1975, the Board of Film Censors was reorganised under the Cinematograph Act to strengthen control over films.
• Abolished the Press Council of India, eliminating a statutory body for media oversight.

Suspension of Fundamental Rights

• Invocation of Articles 358 and 359 (June 27, 1975):
• Article 358: Suspended protections under Article 19 (freedom of speech, assembly, movement).
• Article 359: Allowed the state to suspend enforcement of Articles 14, 21, and 22.
• This suspension limited citizens’ ability to seek legal remedies.

Use of Preventive Detention Laws

• Maintenance of Internal Security Act (MISA): Widely used to detain around 35,000 people without trial.
• Political opponents, activists, and civil society members were imprisoned.

Coercive Population Control Measures

• (i) Sterilisation Drive (1975-77): Incorporated into Emergency as a population control policy.
• In 1975–76, 2.642 million sterilisation procedures were performed.
• In 1976–77, this increased to 8.132 million, totalling over 10.7 million in two years.
• (ii) Linking Welfare with Sterilisation: Access to essential services like rations, jobs, healthcare, housing, and loans was denied to those who refused sterilisation.
• States enforced punitive measures:
• Families with more than 2–3 children faced exclusion from essential services.

PM Modi’s reflections remind the nation of the importance of protecting democratic institutions and freedoms. The anti-Emergency movement is a strong testament to India’s democratic resilience. The lessons from 1975–77 continue to influence current discussions on civil liberties, constitutional integrity, and citizen resistance.