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  • 23 Jan 2025
  • 62 min read
Social Justice

Challenges Related to Aging Population

For Prelims: Supreme Court, Article 21, Fertility, Life Expectancy, South Asian Association for Regional Cooperation (SAARC), Age Pyramid, National Policy on Older Persons (NPOP), Madrid International Plan of Action on Ageing (2002), UN Decade of Healthy Ageing (2021-2030), SDG-3, Pension, Demographic Transition, Telemedicine, PM-JAY. 

For Mains: Status of aging population in India, Challenges associated with aging population and way forward. 

Source: TH 

Why in News? 

The Supreme Court of India refused to entertain a writ petition that sought the establishment of a dedicated Ministry for senior citizens.  

Note: According to the Maintenance and Welfare of Parents and Senior Citizens Act, 2007, a senior citizen means any person who has attained the age of 60 years or above. 

What is the Status of Senior Citizens in India?  

  • Current Trends: India's elderly population (60+) is projected to grow from 10.5% in 2022 to 20.8% by 2050 and exceed 36% by 2100. 
    • By 2046, India's elderly population will outnumber children (0–14), and the working-age population (15–59) will decline by 2050. 
  • Pace of Ageing: Between 2010 and 2020, India’s elderly population doubled at a rate of 15 years while South and East Asia took 16 years to double their elderly population. 
    • The decadal growth rate of the elderly population increased from 31% (1981–1991) to 41% (2021–2031), indicating accelerated aging. 

 Decadal_Growth_of_Elderly_Population

  • Ageing Index: States in southern India with a higher elderly share have a higher ageing index, reflecting declining fertility and more older persons than children. 
    • The ageing index that measures the number of elderly persons (60+ years) per 100 children (below 15 years) was 39 in India in 2021. 
  • Old-Age Dependency Ratio: In 2021, India had 16 elderly per 100 working-age persons, with southern India at 20, western India at 17, and Union Territories and northeastern India at around 13. 
    • The old-age dependency ratio represents the number of elderly persons (60+ years) per 100 working-age persons (15–59 years). 
  • Life Expectancy at 60 Years: In India, the average life expectancy at 60 years is 18.3 years, with females living longer than males (19 years for females, 17.5 years for males).  
  • State Variations: Southern states and northern states like Himachal Pradesh and Punjab had a higher elderly population than the national average in 2021 (10.5%). 
    • States with higher fertility rates, like Bihar and Uttar Pradesh, will see an increase in the elderly population by 2036. 

Elderly_Population

  • Regional Comparisons: By 2050, South Asian Association for Regional Cooperation (SAARC) countries will have an elderly population average of 19.8%. 
    • In SAARC, Maldives (34.1%) and Sri Lanka (27%) will have higher elderly proportions, while India's share will remain around 20%, though the numbers will be significant (around 34.7 crore). 

What are the Challenges with the Aging Population? 

  • Feminization of Aging: Women live longer than men, leading to more elderly women, especially widows, who live alone and rely on family support, making them more vulnerable. 
  • Ruralization of Ageing: According to the Census of India 2011, around 71% of the elderly population lives in rural areas.  
    • Limited access to healthcare, income insecurity, and social isolation are exacerbated by the remoteness of rural areas. 
  • Aging of the Aged: The aging of the aged means a growing share of the elderly will be 75+, placing additional pressure on healthcare, caregiving, and social welfare systems. 
    • An underdeveloped silver economy further exacerbates the mismatch between the demand and supply of services. 
      • The silver economy involves market opportunities for the aging population (60+), focusing on goods, services, and innovations to enhance their quality of life, health, and financial well-being. 
  • Economic Dependency: Only 11% of elderly men receive work pensions, while 16.3% get social pensions. For elderly women, 27.4% receive only social pensions, and just 1.7% get work pensions. 
    • Around one-fifth of the elderly have no income, resulting in financial insecurity. 
  • Lack of Geriatric Care Facilities: 30% of elderly women and 28% of elderly men suffer from at least one chronic morbid condition, such as hypertension, diabetes, arthritis etc impairing their ability to perform daily activities . 
    • Aging worsens health conditions, raising healthcare costs and increasing reliance on family or informal support for caregiving and medical care. 
  • Employability Challenges: Senior citizens face a range of employability challenges like age discrimination (presumed less tech-savvy, or energetic), outdated skills, rigid work hours, lower wages etc. 
  • Social and Family Abuse: Seniors may face verbal abuse, isolation, and physical harm from family members or caregivers, often going unreported due to fear or limited mobility. 

What is Demographic Transition?  

  • About: Demographic transition is a model that explains changes in birth and death rates, along with shifts in the age structure of the population, as societies progress economically and technologically.  
    • Stages: It typically involves several stages: 
    • Stage 1: High birth and death rates result in a stable population.  
    • Stage 2: Death rates decline due to improvements in healthcare, sanitation, and food production, while birth rates remain high. This leads to rapid population growth.  
    • Stage 3: Birth rates begin to fall, slowing population growth. Factors include urbanization, lower child mortality, access to contraception, and societal shifts favoring smaller families.  
    • Stage 4: Both birth and death rates are low, leading to a stable or aging population. This stage reflects higher living standards, advanced technology, and societal development.  

 Demographic_Transition

What are the Major Elderly Care Schemes in India? 

Notes: India’s Commitments: India formulated the National Policy on Older Persons (NPOP) in 1999 and is a signatory to the Madrid International Plan of Action on Ageing (2002).  

Way Forward 

  • Elderly Self-Help Groups: Establish self-help groups for the elderly to promote community engagement, resource sharing, and socio-economic well-being. 
    • E.g., Vietnam is promoting healthy aging through the country's National Action Programme for the Elderly. 
  • Multigenerational Living: Policies promoting multigenerational households (grandparents, parents, and children living together) for the elderly should be prioritized to offer emotional support, family connection, and autonomy. 
    • Promote in-home aging by supporting elderly individuals with short-term care facilities, like daycare centers, providing meals, health monitoring, and companionship. 
    • Building multigenerational bridges can enrich society by fostering the exchange of knowledge, skills, and experiences to rapidly equip the younger generation. 
  • Digital Inclusion: Offer training programs for elderly workers to develop skills like digital literacy and technology proficiency, enabling them to engage in the digital economy, e-commerce, and online healthcare. 
  • Strengthening Healthcare Infrastructure: Provide quality, affordable healthcare for the elderly by increasing geriatric care, and creating elder-friendly facilities.  
  • Expand Pension Schemes: Ensure the expansion and universal coverage of pension schemes to include all elderly individuals. E.g., PM-JAY now covers all senior citizens aged 70 or above. 
  • Policy Reforms: There is a need to include care work in economic activities, create a separate workforce category for the elderly (to harness Silver Dividend), and escalate these efforts. 
    • Adopt Japanese models like providing robots for companionship, assistive devices for mobility, and smart healthcare devices to help elderly people maintain independence. 

Drishti Mains Question: 

Discuss the socio-economic challenges posed by India's rapidly aging population. What steps should be taken to address these challenges?

UPSC Civil Services Examination, Previous Year Questions (PYQs)  

Prelims 

Q. Consider the following specific stages of demographic transition associated with economic development:(2012)

  1. Low birthrate with low death rate
  2. High birthrate with high death rate
  3. High birthrate with low death rate

Select the correct order of the above stages using the codes given below: 

(a) 1, 2, 3  

(b) 2, 1, 3 

(c) 2, 3, 1  

(d) 3, 2, 1 

Ans: (c)

Q. Consider the following statements with reference to Indira Gandhi National Old Age Pension Scheme (IGNOAPS): (2008) 

  1. All persons of 60 years or above belonging to the households below poverty line in rural areas are eligible.
  2. The Central Assistance under this Scheme is at the rate of `300 per month per beneficiary. Under the Scheme, States have been urged to give matching amounts.

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)

Mains 

Q. Discuss the main objectives of Population Education and point out the measures to achieve them in India in detail. (2021) 

Q. Performance of welfare schemes that are implemented for vulnerable sections is not so effective due to the absence of their awareness and active involvement at all stages of the policy process. Discuss. (2019)

Indian Economy

Offshore Sand Mining in Kerala

For Prelims: Geological Survey of India, Indian territorial waters, Exclusive Economic Zone, Desalination, Mineral oils, Sustainable Development Goals 

For Mains: Sand mining, Offshore Mineral Regulation, Impact of Mining on Coastal Ecosystems  

Source: DTE 

Why in News?  

The Union government’s move to begin offshore sand mining along Kerala’s coast under the Offshore Areas Mineral (Development and Regulation) Amendment Act, 2023 ( (OAMDR Amendment Act), has drawn sharp opposition from the state government and local communities over concerns about ecological and livelihood impacts. 

Why is the Government Pushing for Offshore Sand Mining? 

  • Economic Potential: The Centre's decision to permit offshore mining of construction sand is based on a study by the Geological Survey of India (GSI).  
    • Since 1985, GSI surveys have identified construction-grade sand resources off Ponnani, Chavakkad, Kochi, Alappuzha, and Kollam, at water depths ranging from 22 to 45 metres. 
    • These deposits, located within Indian territorial waters (up to 12 nautical miles) and in the Exclusive Economic Zone (EEZ), contain sand with a range of 80% to 96% purity and clay content between 4% and 20%.  
      • The sand, originally sourced from rivers, has undergone marine processes, making it suitable for construction after desalination.  
    • With an estimated 750 million tonnes of reserves, these sand deposits could satisfy Kerala's construction needs for the next 25 years, at a rate of 30 million metric tonnes annually. 
  • Auction Plan: The Centre under the OAMDR Amendment Act, 2023 plans to auction sand blocks in five sectors of Kerala’s coastal areas, including Ponnani, Chavakkad, Alappuzha, Kollam North, and Kollam South. 
  • Revenue Generation: The offshore sand mining is expected to bring in significant income through shipping, trade, and Goods and Services Tax (GST)  collection. 

Sand Mining 

What is Offshore Mining? 

  • About:  Offshore mining involves extracting minerals or precious stones from the seabed. 
  • Potential for Offshore Mining in India: India’s EEZ spans over two million square kilometers, the GSI has delineated resources of various minerals in the offshore areas. 
    • Lime mud: 153,996 million tons (off Gujarat and Maharashtra coasts) 
    • Construction-grade Sand: 745 million tons (off Kerala coast) 
    • Heavy Mineral Placers: 79 million tons (off Odisha, Andhra Pradesh, Kerala, Tamil Nadu, Maharashtra coasts) 
    • Polymetallic Nodules: Andaman Sea and Lakshadweep Sea. 
  • Offshore Critical Mineral Auction: India launched its first-ever offshore critical mineral auction in 2024 under the OAMDR Act, 2002 offering 13 blocks across the Arabian Sea and Andaman Sea. 
    • The auction targets critical minerals like lithium, cobalt, nickel, and copper, essential for infrastructure, renewable energy, and advanced technologies.  
      • With this initiative, India aims to reduce import reliance, enhance resource availability, and strengthen its position in the global mineral market. 

What are the Laws and Rules Governing Offshore Mining? 

  • OAMDR Amendment Act 2023: The Act amends the Offshore Areas Mineral (Development & Regulation) Act (OAMDR Act), 2002, which governs the exploration and extraction of mineral resources in India’s territorial waters, continental shelf, and EEZ.  
    • OAMDR Amendment Act 2023 introduces a transparent auction process for offshore operating rights, establishes a trust for mining-affected people, and boosts exploration.  
      • It removes discretionary renewals, and sets a 50-year lease period. 
    • To implement the amended provisions of the OAMDR Act, the Ministry of Mines has framed Offshore Areas (Existence of Mineral Resources) Rules, 2024 and Offshore Areas Operating Right Rules, 2024. 
  • Offshore Areas (Existence of Mineral Resources) Rules, 2024: These rules apply to all minerals in offshore areas, excluding mineral oils, hydrocarbons.  
    • They do not affect the Atomic Energy Act, 1962, or the provisions related to minerals specified in Part B of the First Schedule of the Mines and Minerals (Development and Regulation) Act, 1957. 
    • Stages of Exploration: The rules define four stages for exploration. 
      • Reconnaissance Survey (G4): Initial phase for identifying mineral deposits. 
      • Preliminary Exploration (G3): More detailed exploration based on G4 findings. 
      • General Exploration (G2): Further detailed exploration that could lead to production. 
      • Detailed Exploration (G1): Final stage confirming the precise nature of resources. 
      • A minimum of G2 level exploration is required for auctioning blocks for production leases. 
  • Offshore Areas Operating Right Rules, 2024: Lessees can surrender their lease after 10 years if operations become uneconomical.    
    • Lessees must report new mineral discoveries within 60 days and update their lease deeds accordingly. 
    • Government bodies have priority access to reserved offshore zones for securing operating rights. 

What are the Concerns Regarding Offshore Mining? 

  • Pollution Risks: Offshore mining creates sediment plumes and releases toxic wastewater containing heavy metals, posing long-term risks to marine life, and ecosystems reliant on marine resources. 
    • In Kerala, environmentalists warn that offshore sand mining could destabilize ecosystems, weaken natural defenses against tsunamis, cyclones, erosion, and disrupt sediment dynamics, threatening aquatic habitats. 
  • Revenue Collections: States like Kerala argue the OAMDR Amendment Act, 2023 does not safeguard state interests. 
    • Royalty revenues from mining are assigned entirely to the central government, sidelining state authorities. 
    • Private sector involvement allowed by the 2023 amendments has raised concerns about unchecked exploitation and lack of transparency. 
  • Local Community’s Opposition: Fishermen’s and other marine-dependent communities oppose the tendering of mining, citing threats to livelihoods and the ecosystem. 
  • Global Resource Competition: The rising demand for metals like cobalt, nickel, driven by renewable energy and electric vehicle industries, intensifies competition leading to exploitation of resources. 
  • Climate Change: Disturbing seafloor ecosystems could release stored carbon, accelerating climate change by increasing atmospheric CO2 levels contributing to global warming. 
  • Limited Knowledge: Offshore mining in India raises concerns due to the limited understanding of deep-sea ecosystems.  
    • It remains one of the least explored and poorly understood areas, making it challenging to predict the full environmental impact of mining activities. 
    • This uncertainty could lead to unforeseen damage to marine biodiversity and ecosystems, particularly as India begins exploring these resources. 

 Way Forward 

  • Environmental Assessments: Mandate independent Environmental Impact Assessments (EIAs) to evaluate the ecological, social, and economic impacts before initiating projects. 
    • Adopt best practices from countries like Norway, where marine resource extraction is preceded by rigorous environmental planning. 
  • Sustainable Mining Practices: Limit extraction volumes, designate no-mining zones near critical ecosystems, and align mining with Sustainable Development Goals (SDGs), particularly climate action (SDG 13) and life below water (SDG 14). 
  • Equitable Revenue Sharing: Revise royalty frameworks to allocate a fair share of revenue to state governments and local communities. Establish community development funds for affected areas.  

Drishti Mains Question: 

Examine the environmental impacts of offshore mining and propose measures to mitigate risks while ensuring economic growth.

 UPSC Civil Services Examination, Previous Year Questions (PYQs) 

Mains: 

Q. Despite India being one of the countries of Gondwanaland, its mining industry contributes much less to its Gross Domestic Product (GDP) in percentage. Discuss. (2021)

Q. Coastal sand mining, whether legal or illegal, poses one of the biggest threats to our environment. Analyse the impact of sand mining along the Indian coasts, citing specific examples. (2019)

Governance

10th Anniversary of BBBP and Sukanya Samriddhi Yojana

For Prelims: Beti Bachao Beti Padhao (BBBP) scheme, Sukanya Samriddhi Yojana, Mission Vatsalya, Mission Shakti, Anganwadi Centers (AWCs), 15th Finance Commission (2021-2026), Nari Adalat, Pradhan Mantri Matru Vandana Yojana (PMMVY), Gross Enrollment Ratio (GER), Integrated Child Protection Scheme (ICPS), Maternal and Infant Mortality, Immunization, Janani Suraksha Yojana (JSY), Sample Registration System (SRS), National Family Health Survey 5 (2019-21), AISHE 2021-2022. 

For Mains: Role of Beti Bachao Beti Padhao (BBBP) scheme and Sukanya Samriddhi Yojana in improving child sex ratio (CSR), sex ratio at birth (SRB) and women empowerment. 

Source: PIB 

Why in News? 

22nd January 2025 marked the 10th year of the launch of Beti Bachao Beti Padhao (BBBP) scheme and Sukanya Samriddhi Yojana. 

What is BBBP? 

  • About: BBBP is a centrally sponsored scheme launched to address the declining Child Sex Ratio (CSR), prevent gender-biased sex-selective elimination, and promote the survival, protection, and education of the girl child. 
  • Key Objectives:  
  • Target Groups: 
    • Primary Groups: Young couples, expecting parents, adolescents, households, and communities. 
    • Secondary Groups: Schools, Anganwadi Centers (AWCs), medical professionals, local government bodies, NGOs, media, and religious leaders. 
  • Integration with Mission Shakti: The BBBP scheme is now integrated with Mission Shakti, a program for women’s safety and empowerment, for implementation during the 15th Finance Commission (2021-2026). Mission Shakti consists of two sub-schemes: 
    • Sambal (Safety and Security): Focuses on women’s safety through initiatives like One Stop Centres (OSCs), Women Helpline (181), nationwide expansion of BBBP, and Nari Adalat for grievance redressal.  
    • Samarthya (Empowerment): Empowers women through Shakti Sadans (relief and rehabilitation homes), Sakhi Niwas (safe accommodation for working women), and Palna (Creche facilities).  
      • The Pradhan Mantri Matru Vandana Yojana (PMMVY) now extends support for a 2nd child if it is a girl, promoting maternal health. 
      • The SANKALP: HEW (Hub for Empowerment of Women) serves as a district-level single-window mechanism for women to access Central and State schemes. 
  • Funding: BBBP is a centrally sponsored scheme with 100% funding by the Central Government in all the districts of the country under Sambal sub-scheme of Mission Shakti. 
    • District-level financial aid is allocated as per SRB i.e., Rs 40 lakh (SRB ≤918), Rs 30 lakh (SRB 919-952), and Rs 20 lakh (SRB >952).   
  • Key Interventions: Grassroots campaigns like the Yashaswini Bike Expedition, which symbolized women’s empowerment, and the Kanya Shiksha Pravesh Utsav, which re-enrolled over 100,000 out-of-school girls. 
    • Conferences and events promoting workforce participation and skilling, like "Betiyan Bane Kushal." 
  • Achievements in 10 Years:  
    • SRB: The national SRB improved from 918 in 2014-15 to 930 in 2023-24. 
    • Education: Girls’ Gross Enrollment Ratio (GER) in secondary education rose from 75.51% in 2014-15 to 78% in 2023-24. 
    • Institutional Deliveries: Institutional deliveries increased from 61% in 2014-15 to 97.3% in 2023-24. 
    • Awareness Campaigns: Nationwide campaigns like ‘Selfie with Daughters’ and ‘Beti Janmotsav’ celebrated the value of the girl child. 
    • Economic Empowerment: Collaborations with the Ministry of Skill Development enhanced skill development and economic participation for girls and women. 

Mission Vatsalya 

  • About: Mission Vatsalya aimed at child protection and development aligned with SDGs. 
    • It emphasizes child rights, advocacy, and awareness, while strengthening the juvenile justice system to ensure "no child is left behind." 
    • It was initially known as Integrated Child Protection Scheme (ICPS). 
  • Sub-Scheme: There were three schemes being implemented under the Ministry of Women and Child Development namely: 
    • Programme for Juvenile Justice for Children in need of care and protection, and Children in conflict with Law. 
    •  Integrated Programme for street children. 
    • Scheme for assistance to homes for children (Shishu Greh). 
  • Consolidation under ICPS (2009-2010): Above three schemes were merged into the ICPS and managed by the Ministry of Women & Child Development. 
    • In 2017, ICPS was renamed the Child Protection Services (CPS) Scheme. 
    • CPS was integrated into Mission Vatsalya from 2021-22 onwards. 

Pradhan Mantri Matru Vandana Yojana (PMMVY) 

  • About: PMMVY is a maternity benefit scheme launched by the Ministry of Women and Child Development to support pregnant and lactating women by providing financial assistance during pregnancy and after childbirth. 
  • Key Objectives: 
    • Compensate Wage Loss: Provide partial compensation for wage loss to women to enable them to rest adequately during pregnancy and after delivery. 
    • Ensure Health and Nutrition: Promote safe delivery and good nutrition for both mother and child. 
    • Reduce Maternal and Infant Mortality: Encourage institutional delivery and postnatal care. 
  • Key Features: A Rs 5,000 direct benefit is provided in three installments. 
    • An additional Rs 1,000 is provided under the Janani Suraksha Yojana (JSY) for institutional delivery, bringing the total benefit to Rs 6,000 per beneficiary. 
  • Eligibility Criteria: The scheme is for pregnant women and lactating mothers with their first live birth, who are 19 years or older. 
    • It excludes women in regular government jobs or receiving similar benefits under other laws. 

What is Sukanya Samriddhi Yojana (SSY)? 

  • About: It was launched as a part of BBBP scheme to provide financial security for the future of the girl child through opening of bank accounts, focusing on education and empowerment. 
  • Account Eligibility: The scheme is open for any resident Indian girl child, with an account being able to be opened from birth until the age of 10. 
    • A guardian can open one account per child, with a maximum of two accounts per family, except for twins or triplets. 
  • Deposit and Contributions: The minimum initial deposit is Rs 250 with the annual deposit limit is Rs 1,50,000.  
    • Deposits can be made for up to 15 years, with the guardian managing the account until the girl turns eighteen. 
  • Account Maturity: The Sukanya Samriddhi account matures after 21 years from the account opening date. Early closure is allowed if the account holder intends to marry before maturity. 
  • Withdrawals: After turning eighteen or completing 10th grade, the account holder can withdraw up to 50% of the balance from the previous financial year for education. 
  • Premature Closure: In case of the account holder's death or compassionate reasons like severe illness or the guardian's death, the account can be prematurely closed. 
    • However, premature closure is not allowed within the first five years of opening the account. 
  • Achievements in 10 Years: As of November 2024, over 4.1 crore Sukanya Samriddhi accounts have been opened, promoting financial discipline and encouraging long-term savings for girls' education and empowerment. 

Sukanya_Samriddhi_Yojana 

What are Key Data Related to Progress in Gender Indicators in India? 

  • Sex Ratio at Birth: According to the Sample Registration System (SRS), the sex ratio at birth improved from 898 females per 1,000 males (2014-16) to 907 (2018-20). 
  • Educational Gender Gap: In 2015-16, the GER for women in higher education was 23.5%, 1.9 percentage points lower than men. However, the AISHE 2021-2022 shows women now lead men in GER by 0.2 percentage points. 
    • At the secondary and higher secondary levels of education, female enrolment surpassed or was equal to male enrolment from 2015-16 onwards.  
  • Maternal and Infant Mortality: Maternal mortality declined to 97 per lakh live births, while infant mortality decreased to 28 per 1,000 live births. 
  • Institutional Deliveries: Institutional deliveries have nearly reached 100% across the country. 

Conclusion 

The Beti Bachao Beti Padhao scheme and Sukanya Samriddhi Yojana have significantly advanced women empowerment in India. With improvements in sex ratio, education, maternal and infant health, and financial security for girls, these initiatives have contributed to a more inclusive and equitable society, aligning with global women-led development goals.

Drishti Mains Question: 

Discuss the impact of the Beti Bachao Beti Padhao scheme and Sukanya Samriddhi Yojana on India's gender-related indicators.

UPSC Civil Services Examination, Previous Year Question (PYQ) 

Prelims 

Q. What is/are the facility/facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi) in branchless areas? (2014) 

  1. It enables the beneficiaries to draw their subsidies and social security benefits in their villages. 
  2. It enables the beneficiaries in the rural areas to make deposits and withdrawals.

Select the correct answer using the code given below:

(a) 1 only  

(b) 2 only 

(c) Both 1 and 2  

(d) Neither 1 nor 2 

Ans: (c)

Q. In India, the interest rate on savings accounts in all the nationalized commercial banks is fixed by (2010) 

(a) Union Ministry of Finance 

(b) Union Finance Commission 

(c) Indian Banks’ Association 

(d) None of the above 

Ans: (d)

Mains 

Q. What are the continued challenges for Women in India against time and space? (2019) 

Q. Women empowerment in India needs gender budgeting. What are the requirements and status of gender budgeting in the Indian context? (2016)

Indian Economy

9th Anniversary of Startup India Initiative

For Prelims: India's startup ecosystem, Startup India, Artificial Intelligence, Reserve Bank of India, Corporate Venture Capital, Fund of Funds for Startups, National Research Foundation , SAMRIDH (Startup Accelerator of MeitY for Product Innovation, Development, and Growth.          

For Mains: Achievements under Start-up India Mission, Current Growth Drivers of India’s Startup Ecosystem, Key Issues Related to India’s Startup Ecosystem, Way Forward 

    Source: PIB 

    Why in News? 

    16th January 2025 marked the 9 years of completion of Startup India Scheme since it was launched on 16th January 2016. 

    • This day has been recognized as National Startup Day. Startup India initiative aims to cultivate innovation, support startups, and stimulate investments. 

    What is the Startup India Initiative? 

    • About: 
    • The Startup India initiative is a government program launched in 2016 that supports entrepreneurs and startups in India.  
    • The goal of the initiative is to create a strong ecosystem for innovation and entrepreneurship that will drive economic growth and employment by supporting startups through measures such as tax benefits, easier compliance, and access to funding. 
    • Flagship Schemes under Startup India: 
      • Fund of Funds for Startups (FFS): A Rs 10,000 crore fund to provide early-stage funding support. 
      • Startup India Seed Fund Scheme (SISFS): SISFS offers financial assistance to startups for proof of concept, prototype development, and product trials. 
      • Credit Guarantee Scheme for Startups (CGSS): CGSS facilitates collateral-free loans to startups to ensure access to credit. 
      • Startup Intellectual Property Protection (SIPP): SIPP provides startups with assistance in patent filing, trademark registration, and Intellectual Property Rights (IPRs) protection at reduced costs. 

     Support_Under_Start-Up_India_Scheme

    • Key Features: 
      • Startup Recognition: Streamlined registration and eligibility criteria. 
      • Ease of Doing Business: Simplified compliance, self-certification, and single-window clearances reduce bureaucratic hurdles for startups. 
      • Tax Benefits: Eligible startups receive tax exemptions on profits for 3 consecutive financial years, encouraging profitability and growth. 
      • Sector-Specific Policies: Targeted initiatives in sectors like biotechnology, agriculture, and renewable energy drive focused development and innovation. 
      • Capacity Building: The Startup India Hub serves as a one-stop platform connecting startups with mentors, investors, and industry experts, while mentorship programs offer guidance and training to enhance entrepreneurial skills and business acumen. 

    What are the Key Achievements Under Startup India Initiative? 

    • Increase in Startups: The DPIIT- recognized startups increased from 500 (2016) to 1.59 lakh (2025). 

     Increase_ in _Startups

    • Startup Ecosystem: India is now the 3rd largest startup ecosystem globally, after the US and China, with over 100 unicorns (startups valued over USD 1 billion). 
    • Employment Generation: By October 2024, startups have created 16.6 lakh direct jobs, with key sectors like IT Services (2.04 lakh) and Healthcare & Lifesciences (1.47 lakh). 

     Employment _Generation

    • Rise of Women Entrepreneurs: As of 2024, 73,151 startups have at least one woman director, reflecting the increasing participation of women in entrepreneurship. 
    • Focus on Non-Metro Cities: Programs like the States’ Startup Ranking and capacity-building workshops have strengthened startup ecosystems in non-metro cities. 

    What are the Other Significant Initiatives Under Startup India? 

    • Ecosystem Development Events: Startup Mahakumbh is a national event that showcases India’s entrepreneurial spirit and innovation.  
      • The first edition in 2024 attracted over 48,000 visitors and 392 speakers. The second edition (April 2025), will focus on "Startup India @ 2047-Unfolding the Bharat Story," highlighting India’s future as a global innovation hub. 
      • ASCEND (Accelerating Startup Calibre and Entrepreneurial Drive) workshops support entrepreneurs in North Eastern States, and the Startup India Innovation Week celebrates entrepreneurship during National Startup Day. 
    • International Exposure: India’s G20 Presidency institutionalized the Startup20 Engagement Group to facilitate global collaboration.  
    • BHASKAR: BHASKAR (Bharat Startup Knowledge Access Registry), launched in 2024 is a one-stop digital platform where diverse startup ecosystem stakeholders like investors, mentors, service providers, and government bodies can seamlessly connect and collaborate. 
      • It offers centralized resources for scaling startups, personalized BHASKAR IDs for streamlined interactions, and an advanced search feature for better discoverability of opportunities.  
      • The platform also promotes India as a global innovation hub and empowers startups from non-metro regions by fostering inclusivity and regional growth. 

    What are the Challenges to the Startup Ecosystem in India? 

    • Access to Capital: Despite initiatives, many startups struggle with securing adequate funding, especially in Tier-II and Tier-III cities. 
      • In August 2024, funding in Tier-II and Tier-III cities dropped to Rs 630 crore from Rs 2,202 crore in July 2024, and further to Rs 202 crore in November 2024 from Rs 1,743 crore in October 2024, highlighting disparities with Tier-I cities. 
    • Regulatory Hurdles: India's complex and ambiguous regulatory environment poses significant challenges for startups. For instance, the debate over categorizing app-based cab services like Ola and Uber under the Motor Vehicles Act has created operational uncertainties.  
    • Scaling Challenges:  According to studies, despite strong growth, around 90% of startups fail within the first 5 years primarily due to issues related to scaling, operational inefficiencies and challenges in entering new markets. 
    • Sustainability Issues:  Several sectors in India's startup ecosystem, including edtech, are witnessing increasing competition, leading to market saturation and reduced profit margins.  
      • The post-pandemic downturn in edtech highlights the challenges of hyper-competition, often resulting in unsustainable cash burn and market consolidation. 

    Way Forward 

    • Streamlined Regulatory Sandbox: Establish a comprehensive regulatory sandbox across sectors, building on the success of the RBI's fintech model.  
      • This would enable startups in sectors like healthtech, edtech, and cleantech to test innovative products in a controlled environment, easing regulatory burdens. 
    • Targeted Skill Development: Sector-specific skill initiatives focusing on emerging technologies like Artificial Intelligence (AI), blockchain, and IoT can be expanded through the Skill India program. 
    • Decentralized Startup Hubs: Develop tier-2 and tier-3 cities as startup hubs by enhancing infrastructure and offering incentives. 
      • Implement a hub-and-spoke model, where major cities (hubs) support surrounding smaller cities (spokes). 
    • Enhanced Tax Incentives: Extend tax benefits for startups from 3 to 5 years, with additional breaks for deep-tech startups and those addressing national priorities, modeled on Israel's 12% corporate tax rate for tech firms. 
    • Robust IP Protection: Streamline the patent process with fast-track examinations for critical sectors and implement an IP awareness program, inspired by Japan’s reduced patent examination time to 14 months. 
    • Government Procurement Boost: Mandate a percentage of government procurement from startups, akin to the US's 23% small business procurement target, opening significant market opportunities for Indian startups. 

    Conclusion 

    The nine-year evolution of the Startup India initiative has transformed India's entrepreneurial ecosystem, promoting innovation and self-reliance. With over 1.59 lakh startups, India is poised to emerge as a global entrepreneurship leader. To maintain this growth, overcoming current challenges and ensuring inclusivity will be crucial as India looks towards its entrepreneurial future in 2047. 

    Drishti Mains Question 

    India’s startup ecosystem has gained global recognition, yet challenges like funding gaps, regulatory hurdles, and limited innovation scaling persist. Discuss. 

    UPSC Previous Year Question (PYQ)  

    Q. What does venture capital mean? (2014)

    (a) A short-term capital provided to industries  

    (b) A long-term start-up capital provided to new entrepreneurs  

    (c) Funds provided to industries at times of incurring losses  

    (d) Funds provided for replacement and renovation of industries  

    Ans: (b) 

    Important Facts For Prelims

    RBI Issues Revised ‘Master Direction’ for ARCs

    Source: LM 

    Why in News? 

    Reserve Bank of India (RBI) has revised the 'Master Direction - Reserve Bank of India (Asset Reconstruction Companies-ARCs) Directions, 2024. 

    • The revised norms for ARCs aim to streamline operations, ensure transparency, protect creditor interests, and emphasize due diligence in settlement processes. 

    What are the Key Points of the RBI's Revised Master Direction on ARC? 

    • Board-Approved Policy: Each asset reconstruction company (ARC) must establish a board-approved policy for settling borrower dues, covering various key elements such as:  
      • Cut-off date for eligibility of one-time settlement. 
      • Permissible sacrifice for different categories when deciding the settlement amount. 
      • Methodology for evaluating the realizable value of the security. 
    • Settlement Process: Settlement should be considered only after all recovery options have been explored. 
      • Preferably, the settlement amount should be paid in a lump sum (one- time payment). 
      • Non-lump sum payment plans must align with business models, borrower cash flows, and projected earnings. 
    • Independent Advisory Committee (IAC): An IAC, with technical, financial, or legal experts, should review settlement proposals and advise the ARC's board committee. 

    What are ARCs? 

    • About: An ARC is a special type of financial institution that buys non-performing assets (NPAs) from banks and financial institutions and attempts to recover the debts or associated securities by itself.  
    • Background of ARCs: The concept of ARCs was introduced by the Narasimham Committee – II (1998), leading to the establishment of ARCs under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, 2002).  
    • Registration and Regulation of ARCs: ARC is registered under the Companies Act, 2013 and must also be registered with the RBI under section 3 of the SARFAESI Act, 2002. 
      • It operates under the SARFAESI Act, 2002, and follows guidelines issued by the RBI. 
    • Working of the ARCs: 
      • Asset Reconstruction: It involves acquiring a bank's or financial institution's rights in loans, advances, bonds, guarantees, or other credit facilities for recovery, known as 'financial assistance'. 
      • Securitisation: It involves acquiring financial assets by issuing security receipts to Qualified Buyers (QB). 
        • QBs include insurance companies, banks, state financial corporations, ARCs under SARFAESI, and SEBI-registered asset management companies. 
      • Security Receipts: ARCs issue security receipts to lenders, redeemable upon loan recovery, charge a management fee, and share recovery gains with the selling financial institutions. 

    Non-Performing Asset (NPA) 

    • About: NPA is a loan classified as an NPA when the loan payments have not been made for a minimum period of 90 days. 
      • For agriculture, a loan is classified as an NPA if the principal or interest is not paid for two cropping seasons. 
    • Types: Banks classify NPAs into three categories based on the duration of non-performance and recovery chances. 
      • Sub-standard Assets: NPAs for 12 months or less. 
      • Doubtful Assets: NPAs for over 12 months. 
      • Loss Assets: Uncollectible assets with little or no chance of recovery, needing full write-off. 

     

    UPSC Civil Services Examination, Previous Year Question (PYQ) 

    Prelims 

    Q. Which of the following statements best describes the term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news?(2017)

    (a) It is a procedure for considering ecological costs of developmental schemes formulated by the Government. 

    (b) It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties. 

    (c) It is a disinvestment plan of the Government regarding Central Public Sector Undertakings. 

    (d) It is an important provision in ‘The Insolvency and Bankruptcy Code’ recently implemented by the Government. 

    Ans: (b)  

    Important Facts For Prelims

    Oysters’ Antimicrobial Properties

    Source: DTE 

    Why in News? 

    According to new research, antimicrobial proteins isolated from oyster hemolymph (the equivalent of blood) can kill certain drug resistant-bacteria.  

    • The proteins can also improve the efficacy of conventional antibiotics against resistant bacteria species. 

     Oyster

    What are the Key Facts Regarding Oysters’ Antimicrobial Properties? 

    • Role of Oysters: Antimicrobial proteins and peptides from oyster hemolymph can: 
      • Kill bacteria like Streptococcus spp., responsible for pneumonia, tonsillitis, and rheumatic fever. 
      • Inhibit and penetrate biofilms that protect bacteria from antibiotics and immune responses. 
      • Enhance conventional antibiotics’ efficacy by 2 to 32 times. 
    • Immune Defenses of Oysters: Oysters face many microorganisms in their marine environment, so they have strong immune defenses. 
      • Oyster hemolymph contains antiviral and antibacterial proteins and peptides effective against various human and marine pathogens. 
    • New Antimicrobial Agents: Over 90% of antibiotics humans currently use are derived from nature. The same is true for over 65% of antibiotics under recent development. 
    • Traditional Relevance: It is used in traditional Chinese medicine for respiratory and inflammatory conditions. 
      • It is integral to the health practices of Indigenous Australians. 

    Note: Globally, nearly 5 million people die from antimicrobial resistant infections each year.  

    • The annual toll of antimicrobial resistant infections is expected to rise by 70%, with an estimated 40 million deaths between 2025 and 2050. 
    • Biofilms are bacterial communities embedded in a self-produced substance that sticks to surfaces, shielding bacteria from the immune system and antibiotics.  
      • They are involved in nearly all bacterial infections. 

    What are Oysters? 

    • About: Oysters belong to the family Ostreidae and are classified as invertebrates. 
      • They are omnivorous and live in groups called colonies, beds, or reefs. 
      • They are covered with shells that are rough, rock-hard, and usually oval or pear-shaped. 
    • Habitat: Oysters are found in shallow ocean waters worldwide and form colonies in beds or reefs. 
      • Food oysters can occasionally produce pearls, though they are not the same as pearl oysters, which belong to a different bivalve family. 
    • Ecological Role: 
      • Keystone Species: Oysters are considered a keystone species as Oyster beds and reefs provide critical habitat and protection for various marine organisms, including sea anemones, barnacles, and mussels. 
        • Keystone species are organisms that have a disproportionately large impact on their ecosystems relative to their abundance. E.g., Tigers, Sea Otters etc. 
      • Water Filtration: A single oyster can filter over two gallons of water per hour, amounting to up to 50 gallons per day. 
        • Oysters remove pollutants like nitrates, ammonia, phosphates, bacteria, and organic matter, significantly improving water quality and clarity. 
    • Diet and Behavior: Oysters feed by filtering algae and food particles from water drawn over their gills.  
      • All oysters begin life as males but typically change permanently to females after about a year. Also, oysters can change gender multiple times during their lifespan. 
    • Role as Food: They are high in calcium, iron, and protein and have been consumed raw or cooked by humans for thousands of years.  

    antimicrobial_Resistance 

    UPSC Civil Services Examination, Previous Year Questions (PYQ) 

    Prelims 

     Q. Which one of the following is a filter feeder? (2021)

    (a) Catfish  

    (b) Octopus 

    (c) Oyster  

    (d) Pelican 

    Ans: (c) 

     Q. Which of the following are the reasons for the occurrence of multi-drug resistance in microbial pathogens in India? (2019)

    1. Genetic predisposition of some people
    2. Taking incorrect doses of antibiotics to cure diseases
    3. Using antibiotics in livestock farming
    4. Multiple chronic diseases in some people

    Select the correct answer using the code given below. 

    (a) 1 and 2  

    (b) 2 and 3 only 

    (c) 1, 3 and 4  

    (d) 2, 3 and 4 

    Ans: (b)  

    Rapid Fire

    H5N1 Bird Flu and Demoiselle Cranes

    Source: DTE 

    Migratory Demoiselle cranes in Jaisalmer, Rajasthan, face threats from the spreading H5N1 bird flu, compounded by unusually high rainfall creating toxic water bodies and pesticide spraying on chickpea fields. 

    • H5N1: Avian Influenza A (H5N1) or H5N1 Bird Flu is a highly pathogenic virus primarily affecting birds but can also infect mammals.  
      • It originated in China in 1996 and rapidly evolved into a more dangerous strain.  
      • Since 2020, it has spread globally across continents. India first encountered an H5N1 outbreak in 2015, affecting Maharashtra and Gujarat. 
    • Spread to Humans: Close contact with infected birds or contaminated environments is the primary route of human infection of avian influenza A viruses. Person-to-person transmission is rare but possible. 
    • Demoiselle Cranes: The Demoiselle crane (known as the koonj or kurjan in India), native to Russia's Siberian region, migrates to India during winters to escape extreme cold, particularly to Rajasthan. 

     Demoiselle_Cranes

    Read more: H5N1 Bird Flu 

    Rapid Fire

    Boreal Forests

    Source: DTE 

    A study reveals that nearly half of the world’s boreal forests are undergoing major changes due to climate change, increasing wild fire risks and altering their carbon sink role. 

    • Key Findings of the Study: Boreal forests are warming four times faster than the global average. 
      • Boreal forests are transitioning to an open state (with sparse tree cover), reducing their carbon storage capacity and increasing wildfire risks, with tree density decreasing from south to north. 
      • Permafrost thawing may release significant soil carbon, further complicating carbon storage projections. 
    • Boreal Forests: The boreal forest (or "taiga") is the world's largest land biome, covering 30% of global forest area and 10% of Earth's land surface. 
      • The boreal ecozone principally spans eight countries in the Northern Hemisphere (Canada, China, Finland, Japan, Norway, Russia, Sweden, and the US). 
      • Boreal forests are dominated by coniferous trees like pine, spruce, and fir, along with some broadleaf species such as poplar and birch. They thrive in high-latitude environments. 
        • Contains more surface freshwater than any other biome, significantly impacting northern oceans and global climate. 
      • Boreal regions provide over 33% of lumber and 25% of paper exports, playing a key role in climate regulation and acting as a major carbon reservoir, rivaling tropical forests. 

     Boreal_Forest

    Read more: Types of Forests in India 

    Rapid Fire

    8th Pay Commission

    Source: BS 

     The Union government has approved the formation of the 8th Pay Commission, a move that will benefit 4.5 million central government employees and 6.8 million pensioners, including defence personnel. 

    • Pay Commission (PC):  It assesses the pay scales, allowances, and benefits for central government employees, taking into account inflation and its impact on remuneration and the cost of living.   
      • A new PC is established every 10 years under the Department of Expenditure (Ministry of Finance) to revise salaries and pensions, ensuring fair compensation for government employees. Usually, a retired Supreme Court judge heads the PC. 
      • Its recommendations are often adopted by state-owned organizations as well. 
    • Historical Context of Implications of PC: Since 1947, the Indian government has established 7 Pay Commissions, with the 7th Pay Commission (2016-2026) under the chairmanship of Justice Ashok Kumar Mathur. 
      • The 7th Pay Commission led to an increase of Rs 1 lakh crore in government expenditure in fiscal year 2016-17. 
    • 8th Pay Commission: It will likely propose formulas for revising the Dearness Allowance (DA) and Dearness Relief (DR) for employees and pensioners to counter inflation. 

    Read more: Pay Commission 

    Rapid Fire

    Entity Locker

    Source: PIB 

    The Ministry of Electronics and Information Technology (MeitY) has introduced Entity Locker, developed by the National eGovernance Division (NeGD) of meity, is part of India's Digital Public Infrastructure initiative, aimed at enhancing business efficiency. 

    • About: Entity Locker is a secure, cloud-based solution for businesses and organizations of all sizes, including MSMEs, corporations, and startups. 
    • Key Features: Features encrypted cloud storage, digital signature authentication and Aadhaar-authenticated role-based access for secure, accountable document sharing. 
    • Benefits: Reduces administrative friction and boosts business efficiency, Minimizes document processing times and operational bottlenecks. 

     Entity_Locker

    Read more: DigiLocker Partners with UMANG 

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