(20 Jan, 2025)



Boosting India's Rubber Industry

Source: BL 

Why in News? 

The Rubber Board has launched new initiatives like Indian Sustainable Natural Rubber (iSNR) and INR Konnect Platform to boost Indian rubber's global prominence and increase domestic production. 

What are the Recent Initiatives Taken in India’s Rubber Industry?  

  • iSNR Initiative: Indian Sustainable Natural Rubber (iSNR) Initiative was launched to meet European Union Deforestation Regulation (EUDR) standards. 
    • It facilitates traceability of rubber products with certificates verifying origin and compliance and simplifies the compliance process for stakeholders targeting EU markets. 
    • It promotes sustainable rubber production while positioning Indian natural rubber as a competitive and responsible choice in the global market. 
  • INR Konnect Platform: It is a web-based platform aimed at increasing productivity by connecting growers of untapped rubber holdings with interested adopters. 
    • It targets 20-25% of untapped and neglected plantations in India by absentee landlords to address price drops, and high costs. 
  • mRube: mRube was launched as the digital marketing platform of Rubber Board to enhance marketing and trade efficiency in the natural rubber sector. 
  • Subsidy Hike: The government plans to increase subsidies for rubber cultivation in a phased manner. 

Note: Absentee landlords own property but don't live or manage it, relying on property managers, tenants, or local agents for maintenance, rent collection, and other operations. 

What is EUDR? 

  • About: EUDR is a legislative framework proposed by the European Commission to address the global issue of deforestation and forest degradation linked to commodity supply chains 
    • The regulation aims to reduce the EU's role in driving deforestation and ensure that products linked to deforestation do not enter the European market.   
  • Mechanism: Traders or operators must demonstrate that their products, when entering the EU market or being exported, do not originate from recently deforested land or contribute to forest degradation. 
  • Objectives: The primary objectives include: 
    • Prevent deforestation by ensuring listed products don't contribute to it. 
    • Reduce carbon emissions by at least 32 million metric tonnes annually. 
    • Combat forest degradation linked to agricultural expansion of these commodities. 
  • Commodities Covered: It focuses on commodities such as cattle, wood, cocoa, soy, palm oil, coffee, rubber, and related products (e.g., leather, chocolate, tires, furniture).  
  • Related Concerns: 
    • Non-Tariff Barrier: EUDR requires certification that commodities like cattle, soy, and palm oil aren’t from deforested land, which India sees as Non-Tariff Barrier. 
    • Compliance Burden: Proving goods are deforestation-free imposes additional administrative and operational burdens, especially on SMEs. 
    • Global Policy Replication: This could lead to global certification schemes becoming the norm creating further pressure on Indian exporters. 
    • Slowing FTA Negotiations: EUDR has become contentious issues in the ongoing India-EU FTA negotiations 

Rubber Board 

  • The Rubber Board is a statutory body constituted under the Rubber Act, 1947, for the overall development of the rubber industry in the country. 
  • It functions under the Ministry of Commerce & Industry of the Government of India. 
  • The Board's headquarters is situated in Kottayam, Kerala. 
    • Rubber Research Institute works under the Rubber Board. 

What are Key Facts About Rubber? 

  • About: Rubber is an elastic material derived from the latex or milky sap of certain plant species, primarily the rubber tree (Hevea Brasiliensis). 
    • This latex is mainly composed of polyisoprene, a polymer, along with various organic compounds. 
    • Rubber is a tropical tree, native to the Amazon rainforest. 
  • Production: India is the third largest producer, fourth largest consumer of natural rubber and fifth largest consumer of natural rubber and synthetic rubber together in the world. 
    • Kerala (over 90%) is the largest rubber producer in India, followed by Tripura (about 9%).  
    • Other prominent states/UTs include Karnataka, Assam, Tamil Nadu, Meghalaya, Nagaland, Manipur, Goa, and the Andaman & Nicobar Islands.  
  • Required Climatic Conditions: It requires temperatures between 20°-35°C and rainfall over 200 cm annually. 
    • It grows in loamy or laterite soil, sloped or elevated land, requiring cheap, skilled labor for cultivation. 
  • Trade Scenario: In 2022-23, India exported 3,700 tonnes of Natural Rubber (NR), with the USA, Germany, UAE, UK, and Bangladesh as the largest markets. 
    • In 2022-23, India imported 5,28,677 tonnes of NR, mainly from Indonesia, Thailand, China, South Korea, and Japan. 

What is National Rubber Policy (NRP) 2019? 

  • About: It is a policy initiative by the Ministry of Commerce & Industry to support production, processing, consumption, and exports 
  • Objectives:  
    • Value Chain Development: Develop the entire rubber industry value chain from cultivation to manufacturing. 
    • Rubber Area Expansion: Increase natural rubber plantations in non-traditional regions without harming ecosystems. 
    • Productivity Enhancement: Improve rubber productivity through better agro management practices. 
    • Domestic Raw Material Supply: Ensure domestic production meets raw material demand. 
    • Quality Standards: Ensure processed NR meets international quality standards. 
  • Rubber Product Manufacturing: Strengthen the rubber manufacturing sector and promote exports. 
  • Policy Interventions:  
    • National Rubber Status: Recognize NR as an agricultural product to leverage existing policies for income enhancement. 
    • Production Goals: Achieve 2 million tonnes of NR by 2030 and expand planting areas. 
    • Value Chain Synchronization: Align activities in NR production, processing, and product manufacturing to boost domestic supply.  

Government Initiatives for Promoting Production of Rubber: 

What can be Done to Increase Rubber Production in India? 

  • Land Diversification: Encouraging farmers to diversify their land use by integrating rubber with other crops in mixed farming systems particularly in North-Eastern states having favorable climatic conditions. 
  • Scientific Farming: Promoting high-yielding varieties and advanced plantation techniques (such as high-density planting) can help increase production per hectare. 
  • Research: Increased investment in R&D to develop more disease-resistant, climate-resilient, and high-yielding rubber varieties can play a significant role in improving production. 
  • Efficient Tapping: Training rubber tappers in efficient methods, like lateral tapping and proper angles, can enhance latex quantity and quality, boosting production. 
  • Market Access: Expanding market access for Indian rubber and rubber-based products (like rubber-based tires and industrial goods) to global markets can incentivize farmers to produce more rubber. 

 Conclusion 

India is advancing its rubber industry through innovative initiatives like the iSNR, INR Konnect, and mRube platforms, aligned with the National Rubber Policy 2019. These efforts aim to increase domestic production, enhance sustainability, and ensure global competitiveness while tackling challenges like compliance with EUDR and expanding market access. 

Drishti Mains Question: 

Evaluate the role of the National Rubber Policy 2019 in strengthening India's rubber industry.

 

UPSC Civil Services Examination, Previous Year Question (PYQ) 

Prelims 

Q.Which one of the following groups of plants was domesticated in the ‘New World’ and introduced into the ‘Old World’? (2019) 

(a) Tobacco, cocoa and rubber 

(b) Tobacco, cotton and rubber 

(c) Cotton, coffee and sugarcane 

(d) Rubber, coffee and wheat 

Ans: (a) 

 Q.Match List-I with List-II and select the correct answer using the code given below the Lists: (2008) 

List-I List-II 
(Board) (Headquarters) 
A. Coffee Board 1. Bengaluru
B. Rubber Board 2. Guntur
C. Tea Board 3. Kottayam
D. Tobacco Board 4. Kolkata

Code: 

A B C D 

(a) 2 4 3 1 

(b) 1 3 4 2 

(c) 2 3 4 1 

(d) 1 4 3 2 

Ans: (b) 


 Mains 

Q.Why indentured labour was taken by the British from India to other colonies? Have they been able to preserve their cultural identity over there? (2018) 


India- European Union Relations

For Prelims: European Union, Indo-Pacific, Foreign Direct Investment, Gulf of Guinea, Intellectual Property Rights, Schengen Area,  EU-India Trade and Technology Council 

For Mains: India's Foreign Policy, India's Relations with European Union, Indo-Pacific Region. 

Source: TH 

Why in News?

As democracies, India and the European Union face increasing pressure from authoritarian regimes, making their cooperation crucial. The EU - India partnership is key to addressing the needs of people across Europe and the Indian subcontinent, offering immense potential but facing issues with consistent delivery. 

What Defines the India-EU Relationship? 

  • Shared Values: Both India and the EU emphasize democracy, multilateralism, and prosperity. 
  • Economic Synergy: India provides the EU access to a growing market and acts as a strategic partner in the Indo-Pacific, while the EU contributes investments, technology, and market access, supporting India’s economic growth.  
    • Sectors like green technology, textiles, and electronics offer opportunities for EU investment and collaboration. 
  • Trade and Economic Relations: 
    • Bilateral Trade: In 2023-24, India’s trade in goods with the EU stood at USD 137.41 billion, making the EU India’s largest trading partner in goods. Bilateral trade in services was valued at USD 51.45 billion in 2023. 
    • Foreign Direct Investment (FDI): The EU is a major investor in India, accounting for 17% of total FDI inflow, contributing to significant employment opportunities. 
  • Maritime Security: The EU's Enhancing Security Cooperation in and with Asia (ESIWA) initiative strengthens security cooperation with Asia, including India, to secure sea lanes, as the Indian Ocean is a vital route for the EU. 
  • Military Exercises: The first India-EU joint naval exercise in the Gulf of Guinea in 2023. 

Key Facts About European Union 

  • Founded: In 1951 after the Second World War (1939–45) by six countries (Belgium, France, Germany, Italy, Luxembourg, and the Netherlands). 
  • Current Member States: 27 countries (Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden). 
    • The UK joined the EU in 1973 and left (brexit) in 2020. 
  • Demography: In EU, Germany has the largest population, France is the largest by area and Smallest Country is Malta. 
  • Open Borders: The Schengen Area allows free movement for most EU members, excluding Cyprus and Ireland.  
    • Four non-EU countries (Iceland, Norway, Switzerland, and Liechtenstein) are also part of Schengen. 
  • Single Market: Goods, services, capital, and people circulate freely within the EU. 
  • Climate Goals: Aim to become climate-neutral by 2050, reduce emissions by 55% by 2030. 

 EU_Member_States

What are the Challenges in India-EU Relations? 

  • Geopolitical Differences: The EU envisions a comprehensive partnership, including trade, security, and human rights cooperation, while India prioritizes strategic autonomy and avoids deep alliances. 
    • India's neutral stance on Russia's invasion of Ukraine contrasts with the European Union's approach, which has imposed sanctions against Russia and faced difficult relations due to Russia's attacks on Ukraine and assaults on democracy. 
      • This creates a trust deficit and complicates policy-level coordination between India and the EU. 
    • India views China as a strategic competitor due to border disputes and economic rivalry, while Europe continues significant trade with China despite concerns over its human rights and economic practices.   
      • This contrast hinders a unified approach on Indo-Pacific policies. 
  • Economic and Trade Barriers: FTA negotiations between India and the EU, initiated in 2007, have faced delays due to disagreements.  
  • Defence and Strategic Divergences: India’s dependence on Russian defence systems limits deeper collaboration with Europe on advanced military technology. 
    • Despite projects like submarine collaborations with France and C-295 Aircraft with Spain, EU-India defense ties lag behind those with the US or Russia.  
    • The lack of a dedicated strategic dialogue and the EU's restrictive approach to knowledge sharing further hinder cooperation, while Russia supports joint manufacturing with India. 
  • Technology and Innovation Gaps: India prioritizes affordable technology, while Europe focuses on sustainability and advanced manufacturing.  
  • Structural Barriers:  Divergences among EU member states complicate a unified foreign policy approach toward India. This fragmentation hampers effective collaboration. 

What is the Need for Strengthening India-EU Relations?  

  • Countering Authoritarianism: As democracies, India and the EU face increasing pressure from authoritarian regimes, particularly China for India and Russia for the EU. 
    • Strengthening ties would help both sides form a united front in defending democratic values and opposing autocratic expansionism. 
  • Economic Growth: A successful FTA between India and the EU would boost trade and investment. The EU is the largest economic bloc and by 2030, India is projected to be the third-largest economy.  
    • They offer each other market access, technological exchange, economic growth and create alternative supply chains to reduce dependency on China. 
  • Technological Collaboration: India’s rise in tech innovation and the EU's R&D capabilities can drive joint initiatives in AI, quantum computing, biotech, and space, countering China's dominance.  
  • Environmental Action: India and the EU can drive global climate action through joint initiatives on clean energy, carbon reduction, and sustainable development, leveraging India’s renewable potential and the EU’s environmental leadership. 
    • India and the EU can jointly invest in green technologies like solar power, electric vehicles, and sustainable agriculture, contributing to global sustainability. 

Way Forward 

  • Unity Against Authoritarianism: A shared understanding of the rising authoritarianism as a threat to democracies can unite India, Europe, and the US. 
    • This alignment can drive collaborative efforts to address global challenges across the Atlantic and Indo-Pacific through initiatives like the Democracy Summits. 
  • Leveraging the TTC: The EU-India TTC presents an opportunity to align technology agendas, similar to the US-India  initiative on Critical and Emerging Technology, fostering high-level collaboration to drive innovation and advancements in key sectors. 
  • Strategic Economic Partnership: Beyond an FTA, India and the EU can explore joint ventures in sectors like pharmaceuticals, technology, renewable energy, and critical raw materials.  
  • Defence: India's defense partnerships with the US, Russia and Quad membership can be complemented by EU’s  investment in India’s defense sector and advanced technologies for regional security. 

Drishti Mains Question: 

Discuss the role of the EU-India partnership in addressing global authoritarianism and analyze how their trade relations can be strengthened.

UPSC Civil Services Examination Previous Year’s Question (PYQs) 

Prelims:

Q. Consider the following statements: (2023)

The ‘Stability and Growth Pact’ of the European Union is a treaty that 

  1. limits the levels of the budgetary deficit of the countries of the European Union 
  2. makes the countries of the European Union to share their infrastructure facilitie 
  3. enables the countries of the European Union to share their technologie 

How many of the above statements are correct 

(a) Only one 
(b) Only two 
(c) All three 
(d) None 

Exp: (a) 

  • The Stability and Growth Pact is a political agreement that sets limits on the fiscal deficits and public debt of the Member States of the European Monetary Union (EMU). Hence, statement 1 is correct. 
  • These guidelines are intended to ensure sound management of public finances within the EMU in order to prevent one Member State’s irresponsible budgetary policies from spilling over and undermining the economic stability of the entire euro area 
  • The European Union Stability and Trade Pact does not make any provision related to sharing of infrastructure and technology. 
  • Hence, statements 2 and 3 are not correct.

Rise in Donation Through Electoral Trust

For Prelims: Electoral Bonds, Supreme Court (SC),  Association for Democratic Reforms v Union of India case, 2024, Electoral bonds scheme, Representation of the People Act, 1951, Election Commission of India (ECI), Finance Act 2017, Articles 19, 14, and 21. 

For Mains: Effects of Electoral Bonds on the election process, Issues Arising Out of Design & Implementation of Electoral Bonds. 

Source: IE 

Why in News? 

The Electoral Trust Contribution reports released by the Election Commission of India (ECI) for the FY 2023-24, indicate a significant increase in donations to political parties through electoral trusts.  

What are the Key Highlights of the ECI’s Report and its Implications? 

    • Highlights of the Report: 
      • Surge in Donations: The contribution to the Prudent Electoral Trust (PET) increased almost three-fold from 2022-23 to 2023-24. 
        • PET is the largest electoral trust in India, receiving Rs 1,075.71 crore in FY24. Represents a significant concentration of corporate donations within a single trust. 
      • Major Recipient: The ruling party at centre (BJP) was the largest beneficiary, followed by the Congress, Bharat Rashtra Samithi (BRS), and YSR Congress. 
      • Status of Electoral Trusts: With more than 15 electoral trusts recognized by the ECI, only five trusts, including PET, received donations during this period. 
    • Implications:  
      • Comparative Analysis: Unlike electoral bonds, which enabled Rs 12,000 crore in anonymous donations between 2018 and 2023, the SC ruling in Association for Democratic Reforms vs Union of India case 2024, declaring them unconstitutional has significantly shifted political funding towards electoral trusts.  
        • This shift has enhanced transparency by disclosing donor identities, amounts, and recipient parties, with trusts like Prudent Electoral Trust receiving 74% of their FY24 donations (Rs 797.1 crore out of Rs 1,075.7 crore) post-ruling. 
      • Economic Dimensions: Electoral trusts channel large-scale corporate funds into political systems, reinforcing corporate influence on party finances. 
        • The dominance of a few trusts like Prudent and Triumph highlights the centralization of political funding among top donors. 

 Electoral_Trust_Contribution

What are Electoral Trusts? 

    • About; The Electoral Trusts, introduced in 2013, are non-profit entities established to collect funds from donors and distribute them to political parties. 
    • Legal Framework: These trusts are regulated under the Companies Act, 1956. Section 25 of this act (now section 8 in new Companies Act, 2013) allows any company to establish an electoral trust under this scheme. 
    • Eligibility for Donations: Section 17CA of the Income Tax Act, 1961 permits donations to electoral trusts from: 
      • Indian citizens, Companies registered in India, Firms, Hindu Undivided Families (HUF), or associations of persons residing in India. 
      •  Donors are required to provide their PAN (for residents) or passport number (for NRIs) at the time of making contributions. 
    • Donations to Political Parties: Electoral trusts must donate at least 95% of the funds they receive in a financial year to eligible political parties that are registered under the Representation of the People Act, 1951. 
    • Registration and Renewal: Electoral trusts are required to apply for renewal every three financial years in order to continue their registration and operations. 
    • Key Differences Between Electoral Bonds and Electoral Trusts:  

Feature 

Electoral Bonds 

Electoral Trusts 

Regulation 

Primarily regulated by the RBI, SBI, and Election Commission. 

Regulated by the Companies Act, monitored by the Election Commission and Income Tax Department. 

Purpose 

Aims to streamline donations while maintaining donor anonymity. 

Focuses on aggregating donations and ensuring transparency. 

Tax Benefits 

Donors can avail deductions under Section 80GGC. 

Donors receive tax deductions for donations through the Trust. 

Operational Mechanism 

Donations are made directly to political parties via bonds. 

Trusts collect funds and distribute them to political parties. 

Donor Disclosure 

Donors’ identities remain undisclosed. 

Donors’ identities are publicly disclosed. 

Transparency 

Anonymity of donors and recipients; concerns over undisclosed corporate influence. 

Full disclosure of donors and recipients details to the public. 

What is the Electoral Bond Scheme? 

    • About:The Electoral Bonds Scheme, introduced in 2018, is a money instrument similar to promissory notes, available for purchase by individuals and companies from the State Bank of India (SBI). 
      • The bonds can only be redeemed by registered political parties in a designated account. 
      • The person purchasing the bonds can either buy them singly or jointly with others. 
    • Objective: The primary goal was to ensure transparency in electoral funding, with the government presenting it as a reform for a nation progressing towards a digital economy. 
    • Amendments to Scheme: In 2022 amendment to the scheme introduced an extra 15-day period for the purchase of electoral bonds during years of state legislative assembly elections. 
      • Electoral bonds are valid for 15 days from issuance. If not deposited within that time, they cannot be used. If deposited by the political party within the validity period, the bond is credited to their account on the same day. 
      • Only political parties registered under Section 29A of the Representation of the People Act, 1951 (RPA) that secured at least 1% of the votes in the last general election (either Lok Sabha or State Legislative Assembly) are eligible to receive Electoral Bonds. 
    • Declared Unconstitutional: In Association for Democratic Reforms vs Union of India case, 2024, SC declared the scheme as Unconstitutional and found that the anonymity allowed in the scheme violates the fundamental right to information under Article 19(1)(a) of the Constitution, 

 Electoral _Bond _Case

What are the Recommendations Related to Electoral Funding in India? 

    • Indrajit Gupta Committee, 1998: Endorsed state funding of elections to establish a fair playing field for parties with less financial resources. 
      • Recommended limitations: 
        • State funds to be allocated only to national and state parties with allotted symbols, not independent candidates. 
        • Initially, state funding should be provided in kind, offering certain facilities to recognised political parties and their candidates. 
        • Acknowledged economic constraints, advocating partial rather than full state funding. 
    • Law Commission, 1999: Described total state funding of elections as desirable under the condition that political parties are prohibited from receiving funds from other sources. 
      • The Commission proposed amending the RPA, 1951, introducing section 78A for maintenance, audit, and publication of political party accounts, with penalties for non-compliance. 
    • Election Commission's Recommendations: The 2004 report of the Election Commission emphasised the necessity for political parties to publish their accounts annually, allowing scrutiny by the general public and concerned entities. 

What are the Issues Related to Electoral Funding in India? 

    • Transparency Issue: Electoral Bonds were meant to ensure transparency, but donor anonymity undermines it, especially for the public and opposition. Transparency issue in electoral bonds allows the ruling party to manipulate donor information, compromising elections. 
      • The ruling party may access donor details via SBI, potentially victimizing non-supportive companies. 
    • Impact on Democracy: Voters remain unaware of donation sources, limiting their ability to make informed choices. Electoral bonds restrict citizens' right to know about political donations, affecting participatory democracy. 
    • Crony Capitalism: The removal of donation caps (7.5% of their average net profits from the past 3 financial years) opens the door for corporate influence on politics, fostering crony capitalism. 
      • Crony Capitalism is an economic system characterized by close, mutually advantageous relationships between business leaders and government officials. 
    • Imbalance in Funding: Association for Democratic Reforms (ADR) Report, 2023 highlights that national parties, especially the ruling party, dominate electoral bond donations, creating an unequal funding landscape.  
      • As electoral bonds show disproportionate donations from the corporate sector, strengthening the power of the ruling party.  

Way Forward  

    • Balancing Transparency and Anonymity: One of the most prominent responses is to balance legitimate public interests in transparency and anonymity. Many jurisdictions strike this balance by allowing anonymity for small donors, while requiring disclosures of large donations. 
      • In the UK, a party needs to report donations received from a single source amounting to a total of more than Pounds 7,500 in a calendar year.  
      • The analogous limit in Germany is Euros 10,000. 
    • Regulation of Donations: Countries should focus on limiting donations to avoid dominance by large donors. As limits prevent financial arms races in elections.  
      • Electoral Trusts can ensure donations stay within limits and are allocated properly. 
    • Public Funding for Parties: Public funding is based on party performance, with disclosure ensuring transparency while anonymity protects smaller donors.  
    • National Election Fund: A national fund could gather donations from all donors and distribute them to political parties based on their electoral performance.  
      • This approach would address concerns about potential reprisals against donors. 

 Drishti Mains Question 

Discuss the role of electoral trusts in promoting transparency, highlight the difference between electoral bond and electoral trust, and suggest measures to enhance electoral accountability and regulatory oversight.

  

UPSC Civil Services Examination, Previous Year Question (PYQ) 

Prelims: 

Q. ‘Right to Privacy’ is protected under which Article of the Constitution of India?

(a) Article 15  
(b) Article 19 
(c) Article 21  
(d) Article 29 

Ans: (c) 


Mains: 

Q. The Right to Information Act is not all about citizens’ empowerment alone, it essentially redefines the concept of accountability.” Discuss. (2018)


Semiconductor Partnership with Singapore

Source: TH 

Why in News? 

During his recent visit to India, the President of Singapore announced plans to explore initiatives such as semiconductor manufacturing and developing a semiconductor ecosystem in India apart from participating in the creation of a new generation of technological solutions. 

How is Singapore’s Semiconductor Landscape? 

  • Economic Contribution: Singapore’s semiconductor sector contributes about 8% to its GDP. 
    • It produces around 10% of the world’s semiconductor output, 5% of global wafer fabrication capacity, and 20% of semiconductor equipment production. 
  • Global Semiconductor Presence: Major global semiconductor companies have established significant operations in Singapore, covering the entire semiconductor value chain from integrated circuit (IC) design to assembly, packaging, testing, and wafer fabrication. 
  • Challenges: Singapore's semiconductor industry specializes in mature-node chips (28 nm and above) for automotive and consumer electronics, but hasn't yet entered high-end logic chips for AI and advanced computing (7 nm and below). 

Semiconductor

What are Key Points about India’s Semiconductor Industry? 

  • Market Value: According to Indian Electronics and Semiconductor Association (IESA)in 2024, India's semiconductor market was valued at USD 52 billion, with projections to grow to USD 103.4 billion by 2030.  

How Singapore can Help Develop India’s Semiconductor Industry? 

  • Expanding Manufacturing Capabilities: Indian companies can partner with Singaporean firms to outsource assembly and testing, reducing costs for Singapore and enabling India to adopt advanced manufacturing technologies. 
  • Talent Development: Singaporean universities offer programs in microelectronics and semiconductor engineering, and Indian institutions can collaborate for research, student exchanges, and PhDs to build a skilled workforce for India’s semiconductor goals. 
  • Industrial Park Development: On the lines of Wafer Fab Parks (industrial zones specifically designed for semiconductor manufacturing) in Singapore, India can establish similar industrial parks for attracting global players. 
    • Partnerships with Singaporean firms can provide Indian companies access to advanced semiconductor technologies and essential materials for chip production. 

India-Singapore Relations 

  • Background: India was one of the first countries to recognise Singapore's independence in 1965. 
    • Relations date back to Stamford Raffles establishing a trading post in Singapore in 1819, which became a British colony governed from Kolkata until 1867. 
  • Trade and Economic Cooperation: The Comprehensive Economic Cooperation Agreement (CECA) between India and Singapore was signed in 2005. 
    • Singapore is India’s 6th largest trade partner (FY24), accounting for 3.2% of India’s overall trade.  
    • India is Singapore’s 12th largest trade partner with a 2.3% share in Singapore’s overall trade.  
    • Singapore is India’s largest trade partner in the ASEAN region. 
  • Security Cooperation: Military exercises between India and Singapore include SIMBEX (Navy), SINDEX (Air Force), and Bold Kurukshetra (Army). 
  • Culture: Singapore's four official languages are Malay, Mandarin, Tamil and English. As per the data of government of Singapore, ethnic Indians constitute about 7.6of the resident population of 4.18 million in Singapore.  

singapore

What is the Significance of Semiconductors for India? 

  • Industrial Development: The global semiconductor industry is poised for a decade of growth and is projected to become a trillion-dollar industry by 2030, and India aims to capture a significant share. 
    • The Indian semiconductor market was worth USD 15 billion in 2020 and is estimated to reach USD 63 billion by 2026. 
  • Technological Sovereignty: By developing domestic semiconductor capabilities, India can ensure a stable supply for critical defense systems and secure communication networks. 
  • Global Supply Chain: India’s participation in the semiconductor sector can boost global supply chain influence, attract investments, and enhance its strategic geopolitical role. 
  • Digital Transformation: Semiconductors are key to AI, quantum computing, and 5G, making domestic development crucial for India’s digital and technological progress. 
    • It will support data centers, communication networks, and smart cities, aiding national growth. 
  • Skill Development: The semiconductor industry’s demand for specialized skills will boost STEM education and research in Indian institutions.

What are the Challenges in Semiconductor Manufacturing?

  • Capital and Investment: Semiconductor manufacturing is extremely capital-intensive, with significant investments required in both R&D and infrastructure. 
    • The import semiconductor manufacturing price index grew by 4.9% in 2021 and an additional 2.4% in 2022. 
  • Talent Shortage: The industry faces a significant talent gap, with over 1 million skilled professionals needed by 2025. 
    • India faces a shortage of skilled workers capable of operating fabrication plants. 
  • Limited Access to Advanced Technology: The dominance of countries like Taiwan and South Korea in the semiconductor ecosystem which have exclusive access to critical technologies limits India’s ability to scale its capabilities swiftly. 
  • Environmental Concerns: The semiconductor industry is energy-intensive and contributes 31% of global greenhouse gas emissions. 
  • Competition from Other Emerging Markets: India faces competition from emerging markets like Vietnam, Malaysia, and Indonesia, with Malaysia successfully attracting companies like Infineon in the first wave of semiconductor investments. 

Way Forward 

  • Education and Training: Expand semiconductor programs at universities, partnering with global companies for industry-relevant curricula and practical training. Example: IISc Bengaluru collaborating with TSMC (Taiwan’s semiconductor company). 
  • Indigenous Chip Design: Establish chip design centers in tech hubs like Bengaluru and Hyderabad. E.g., IIT Madras' Shakti processor. 
  • Supply Chain: Build a comprehensive supply chain within India, attracting investments in raw materials to advanced packaging.  
    • Establish SEZs for semiconductor development. 
  • Sovereign Semiconductor Fund: Create a sovereign fund for semiconductor investments, prioritizing technologies like 3nm and 2nm fabrication 
  • Chip Diplomacy: Leverage India's geopolitical position to secure technology transfers through strategic partnerships with countries like Japan. 
  • Green Semiconductor Initiative: Position India as a leader in sustainable semiconductor manufacturing, focusing on reducing water usage, energy consumption, and chemical waste. 

Drishti Mains Question:

Discuss the significance of semiconductors for India’s development? How can India capitalize on this opportunity in the coming decades?

UPSC Civil Services Examination, Previous Year Question (PYQ) 

Prelims

Q. With reference to solar power production in India, consider the following statements: (2018)

  1. India is the third largest in the world in the manufacture of silicon wafers used in photovoltaic units.  
  2. The solar power tariffs are determined by the Solar Energy Corporation of India.  

Which of the statements given above is/are correct?  

(a) 1 only  

(b) 2 only  

(c) Both 1 and 2  

(d) Neither 1 nor 2  

Ans: (d)

Q. Which one of the following laser types is used in a laser printer? (2008)

(a) Dye laser  

(b) Gas laser  

(c) Semiconductor laser  

(d) Excimer laser  

Ans: (c)


Mains

Q. How is science interwoven deeply with our lives? What are the striking changes in agriculture triggered by science-based technologies? (2020)

Q. What do you understand about nanotechnology and how is it helping in the health sector? (2020)


National Panchayat Awards 2024

Source: PIB 

Why in News? 

The National Panchayat Awards 2024 were awarded to 45 Panchayats across India by the President of India for their exceptional contributions to inclusive growth and sustainable development.  

What are the Key Facts Related to National Panchayat Awards 2024? 

  • About: 
  • Objective: 
    • The awards aim to promote best practices, foster a spirit of competition, and motivate Panchayats to excel in delivering quality governance and services to rural communities. 
    • These awards were revamped in 2022 to align with Sustainable Development Goals (SDGs), using a multi-level evaluation across Block, District, State/UT, and National levels 
    • Panchayats are assessed on 9 thematic areas:  

 Areas_of_Panchayat_Assessment

  • Significance: 
    • The awards highlight Panchayats' pivotal role in socio-economic development, grassroots governance, and advancing the SDGs through LSDGs. 
  • Categories of Awards: 
    • Deen Dayal Upadhyay Panchayat Satat Vikas Puraskar (DDUPSVP): Top 3 Gram Panchayats (GPs) under each of the 9 Localization of SDGs (LSDGs) themes. 
    • Nanaji Deshmukh Sarvottam Panchayat Satat Vikas Puraskar: Top 3 GPs, Block Panchayats, and District Panchayats for overall excellence across all themes. 
    • Gram Urja Swaraj Vishesh Panchayat Puraskar: Recognizes GPs for renewable energy adoption. 
    • Carbon Neutral Vishesh Panchayat Puraskar: Awards GPs for achieving net-zero carbon emissions. 
    • Panchayat Kshamta Nirmaan Sarvottam Sansthan Puraskar: Honoring institutions supporting Panchayats in implementing LSDGs. 
  • Awardees for 2024: 

PRI_Awardees_2024 

What are the Other Initiatives Related to PRIs? 

  • SVAMITVA Scheme 
  • e-Gram Swaraj e-Financial Management System:  
    • e-Gram Swaraj is a simplified application developed for PRIs to manage work-based accounting, enhancing transparency and accountability in financial management. 
  • Geo-Tagging of Assets:  
    • mActionSoft is a mobile-based solution designed to capture photographs with geo-tags (GPS coordinates) for assets generated by Panchayat works.  
  • Citizen Charter: The Ministry of Panchayati Raj (MoPR) has introduced a platform for Panchayats to upload Citizen Charters, under the slogan “Meri Panchayat Mera Adhikaar – Jan Sevaayein Hamaare Dwaar”, to ensure efficient and timely service delivery to citizens. 

 UPSC Civil Services Examination, Previous Year Questions (PYQs) 

Prelims 

Q1. Local self-government can be best explained as an exercise in (2017) 

(a) Federalism 

(b) Democratic decentralisation 

(c) Administrative delegation 

(d) Direct democracy 

Ans: (b) 

Q. The fundamental object of Panchayati Raj system is to ensure which among the following? (2015)

  1. People’s participation in development 
  2. Political accountability 
  3. Democratic decentralisation 
  4. Financial mobilisation 

Select the correct answer using the code given below 

(a) 1, 2 and 3 only 

(b) 2 and 4 only 

(c) 1 and 3 only 

(d) 1, 2, 3 and 4 

Ans: (c)  


QS World Future Skills Index 2025

Source: IE 

Why in News?  

India ranks 25th in the QS World Future Skills Index 2025, positioning it as a "future skills contender." The index evaluates how well countries are prepared to meet the evolving demands of the global job market 

What is the  QS World Future Skills Index? 

  • About: The QS World Future Skills Index, developed by Quacquarelli Symonds (QS), ranks countries on their readiness to meet evolving global job market demands emphasizing innovation, sustainability, and talent development. 
  • Indicators:  The Index uses four indicators to measure a country’s preparedness to thrive in an increasingly skills-driven global economy. 
    • Skills Fit: Measures how well a country's education systems align with employer demands. 
    • Academic Readiness: Reflects the capacity of higher education systems to equip students with relevant skills for future jobs, particularly in emerging fields such as Artificial intelligence (AI), digital technologies, and green industries. 
    • Economic Transformation: Assesses a country's adaptability to economic changes by examining the interplay between education, workforce skills, and industrial growth, with a focus on productivity, innovation, and sustainability. 
    • Future of Work: Assesses a country’s preparedness for future jobs, focusing on adaptability to technological and industrial changes. 

 QS_World_Future_Skills_Index

How Has India Performed in the QS World Future Skills Index 2025? 

  • Future of Work: India ranked 2nd globally, behind the US, for preparedness in future-focused skills like AI, digital technologies, and green industries. 
    • This reflects India’s demand-driven readiness for emerging job roles. 
  • Academic Readiness: India ranked 26th, showcasing moderate alignment between higher education and the demands of the future job market. Emphasis on innovation and adaptability is noted but needs strengthening. 
  • Skills Fit: India ranks 37th,  the lowest among the top 30 countries. This highlights significant gaps between the workforce's skills and employer demands, reflecting challenges within India's higher education system in adapting to the evolving needs of the job market. 
  • Economic Transformation: India ranked 40th, highlighting the challenges in innovation and aligning economic strategies with workforce adaptability. 

 India_Future_Skills_Index_2025

Read more: Future of Jobs Report 2025 

 UPSC Civil Services Examination, Previous Year Questions (PYQs)  

Prelims  

Q. The Global Competitiveness Report is published by the (2019) 

(a) International Monetary Fund  

(b) United Nations Conference on Trade and Development  

(c) World Economic Forum  

(d) World Bank  

Ans: (c)  


ISRO’s Third Launch Pad

Source: PIB 

The Union Cabinet has approved the establishment of the Third Launch Pad (TLP) at the Satish Dhawan Space Centre (SDSC), India’s 1st launchport (2nd launchport - Kulasekarapattinam), in Sriharikota, Andhra Pradesh. 

  • The third launch pad will have the capacity to handle spacecraft weighing up to 30,000 tonnes in low Earth orbit. 
  • Currently, ISRO uses two launch pads i.e., the First Launch Pad (FLP) and the Second Launch Pad (SLP). 
    • FLP was implemented for the PSLV and continues to support launches for both PSLV and SSLV. 
    • SLP was primarily set up for GSLV and LVM3, while also serving as a backup for PSLV. 
  • Future Vision: India’s vision includes a Crewed Lunar Landing by 2040 and the Bharatiya Antariksh Station (BAS) by 2035, necessitating heavier launch vehicles that cannot be accommodated by existing pads. 
  • In 2024, foundation stone for ISRO’s 2nd rocket launchport was laid in Kulasekarapattinam, Tamil Nadu for commercial, on-demand, and small satellite (SSLVs) launches and to avoid dogleg manoeuvre over Srilanka. 

 Dogleg_Manoeuvre

Read More: New Rocket Launchport in Tamilnadu 


Marburg Virus Disease Outbreak

Source: DTE 

A suspected outbreak of Marburg virus disease (MVD) in Tanzania’s Kagera region has raised alarm after claiming 8 lives. 

  • About MVD: MVD is a deadly hemorrhagic fever caused by the Marburg virus, characterized by high fatality rates of 89% and the absence of approved treatments. 
    • Symptoms: The virus causes severe symptoms, including fever, headache, vomiting blood, and bleeding, resembling the Ebola virus. 
    • Transmission: It is transmitted to humans from fruit bats (Rousettus aegyptiacus) and spreads through direct contact with the bodily fluids of infected individuals. 
    • Diagnosis: It is confirmed using tests such as RT-PCR (Reverse Transcription Polymerase Chain Reaction). 
  • About Tanzania: Tanzania (formerly Tanganyika) is the largest country in East Africa and includes the islands of Zanzibar, Pemba, and Mafia. 
    • It is bordered by the Indian Ocean and eight countries.  
    • It is bordered by 3 of the largest lakes in Africa i.e., Lake Victoria (world's 2nd largest freshwater lake), Lake Tanganyika, and Lake Nyasa. 

 Tanzania

Read More: India Tanzania Relations 


Demand For Frontier Nagaland Territory

Source: TH 

The Ministry of Home Affairs (MHA) has agreed to the demand by the Eastern Nagaland People’s Organisation (ENPO) for autonomy in the proposed Frontier Nagaland Territory (FNT). 

Frontier Nagaland Territory (FNT) 

  • About:  

  • FNT is a proposed administrative region demanded by the ENPO to address the developmental imbalances in 6 eastern districts of Nagaland- Kiphire, Longleng, Mon, Noklak, Shamator, and Tuensang. 
  • Objective: 
    • It aims to grant executive, legislative, and financial autonomy to these districts, enabling better governance and focused resource allocation to bridge the "development deficit." 
  • Significance: 
    • These districts, which are home to 7 Naga tribes (Konyak, Khiamniungan, Chang, Sangtam, Tikhir, Phom and Yimkhiung), account for over 30% of Nagaland’s population and 20 of the 60 legislative assembly seats. 
  • Background: 
    • The demand for a separate state for Eastern Nagaland began in 2010, led by the ENPO citing a significant "development deficit" in the region. 

Nagaland: 

  • After Independence in 1947, the Naga territory remained part of Assam. It was recognized as a state on 1st December 1963 under the State of Nagaland Act, 1962. 

 Read More: Nagaland Statehood Day 


Fonio Millet

Source: DTE 

Fonio, an ancient West African millet (e.g., Ghana), is known for its resilience to climate shocks, ease of cultivation, and ability to grow in poor soils with minimal water requirements. 

  • It is often referred to as a miracle grain due to its adaptability and nutritional value. 
  • Fonio is traditionally cultivated by Fulani tribes, the largest nomadic tribe in Africa. 
    • It is highly versatile and can be used in salads, porridges, pasta, bread, or served as a side dish. 
    • It can be cultivated in arid and semi-arid regions and require low water intake. 
  • It is similar to Indian millets like sikiya and raishan. Sikiya, a favored millet of the Baiga tribe, is cultivated in parts of Madhya Pradesh. 
  • The year 2023 was declared by the United Nations as the International Year of Millets 
    • Profit motive among farmers is leading to neglect of millet production e.g., in Odisha's Niyamgiri hills, pineapple cultivation for profit has sidelined millets. 

 Millets

Read More: India's Millet Revolution