REDUCING IMPORT DEPENDENCE ON VEGETABLE OILS
TOPIC: (GS2) POLITY: THE HINDU
India’s dependence on vegetable oil imports has grown sharply, making it a structural issue like crude oil imports. While Minimum Support Price (MSP) has helped in rice and wheat, it is not a sustainable solution for reducing edible oil imports.
Rising Import of Vegetable Oils
- In 2024–25, India imported 16.4 million tonnes of vegetable oil worth $17.3 billion.
- This is over double the 2013–14 import level of 7.9 million tonnes.
- Unlike pulses, this import dependency shows a long-term structural trend, not just temporary demand shocks.
Why MSP Hike Won’t Solve the Problem
- No Procurement Mechanism: MSP only works when backed by government procurement like in rice/wheat. Oilseeds lack this setup, making MSP ineffective on ground.
- Uncompetitive Price: India’s MSP for soyabean is ₹5,328/quintal. Global prices (Brazil/US) are around $400–450, making imports cheaper.
- No Yield Breakthroughs
- Soyabean yield in India: ~1 tonne/hectare
- Brazil & US yield: 3.4–3.5 tonnes/hectare
- Poor productivity keeps domestic costs high despite MSP.
Lessons from Pulses Sector
- Scientific breakthroughs helped reduce pulse imports.
- Short-duration chana and photo-insensitive moong enabled farmers to grow more with less water and in more seasons.
- In normal years, India now produces 90% of pulse requirements.
Solutions for Oilseeds Sector
- Support Research & GM Crops: Introduce genetically modified (GM) mustard and soyabean to boost yields. Encourage indigenous R&D for high-yield varieties.
- Income Support Over MSP: Give direct income support to oilseed farmers instead of increasing MSP. This ensures incentive without market distortion.
- Lower Production Costs: Invest in irrigation, input subsidies, and technology access. Encourage mechanisation and reduce dependence on imports.
Current Affairs Relevance (2025)
- Budget 2025 proposed expansion of PM-AASHA scheme to include targeted income support for oilseed farmers.
- ISAPP (Indian Seed and Agri Productivity Panel) has recommended revisiting GM crop approvals, especially for edible oil sector.
Conclusion
India must address structural weaknesses in the oilseeds sector through technology, policy reform, and investment in R&D. MSP alone is not enough. Learning from the success in pulses, the focus must shift towards productivity and farmer income stability, if India wants to reduce its heavy import burden in edible oils.
CASTE CENSUS, RESERVATION & NINTH SCHEDULE INCLUSION
TOPIC: (GS2) POLITY: THE HINDU
The demand for increasing reservation to 85% and its inclusion in the Ninth Schedule of the Constitution has re-ignited the debate on caste-based inequality, social representation, and empirical governance.
Why Caste Census is Essential
- India’s affirmative action policies rely on outdated data; the last caste-wise data was fully collected in 1931.
- A caste census would reveal the real socio-economic status and representation of OBCs, SCs, and STs, enabling more accurate reservation policies.
- Without data, reservations risk becoming symbolic and unscientific.
- It also helps to address intra-group inequalities within backward classes.
Reservation Ceiling: The 50% Debate
- The Supreme Court’s 50% cap on reservations is considered by critics to be arbitrary, unscientific, and not reflective of India’s demographic realities.
- The push to increase quotas to 85% in Bihar challenges this limit and calls for protection under the Ninth Schedule, which shields laws from judicial review.
- This would require legislative and constitutional action.
Why Ninth Schedule Protection?
- Judicial scrutiny has struck down state laws breaching the 50% quota.
- Inclusion in the Ninth Schedule (under Article 31B) gives constitutional protection.
- Past examples include the Tamil Nadu 69% reservation law protected through this route.
Way Forward
- Conduct a transparent, scientific caste census under central supervision.
- Base reservation quotas on updated population and deprivation data.
- Push for legislative protection (like Ninth Schedule inclusion) to withstand judicial challenges.
- Ensure inclusive governance by aligning representation with actual demographics.
Ninth Schedule
Introduced by: First Constitutional Amendment Act, 1951
- Purpose: To protect land reform and other progressive laws from judicial review by placing them under Article 31B.
- Laws listed in Ninth Schedule are shielded from being declared invalid even if they violate Fundamental Rights.
- Initially contained 13 laws – today, it contains over 280 laws (as of 2024).
- Mostly used for:
- Land reform laws (abolition of zamindari)
- Reservation-related laws (e.g., Tamil Nadu’s 69% reservation law)
Kesavananda Bharati Case – 1973 (Landmark Judgment)
- Judgment by: 13-judge Constitution Bench of the Supreme Court (largest ever)
- Key Doctrine Established: Basic Structure Doctrine
- Parliament can amend the Constitution, but cannot alter the basic structure (e.g., secularism, federalism, judicial review, rule of law).
- Impact on Ninth Schedule:
- Before 1973: Any law placed in Ninth Schedule was completely immune from judicial review.
- After 1973 (Kesavananda Bharati): Parliament’s power to place laws in the Ninth Schedule was limited.
Post-Kesavananda Developments
- In I.R. Coelho v. State of Tamil Nadu (2007):
- SC ruled that any law added to the Ninth Schedule after April 24, 1973 (i.e., after Kesavananda judgment) can be judicially reviewed.
- If such a law violates fundamental rights, especially Article 14 (Equality), Article 19 (Freedom), or Article 21 (Right to Life), it can be struck down.
Conclusion
A comprehensive caste census is not just a policy tool but a constitutional necessity to achieve true equality and justice. Without data, policy-making remains blind. Expanding reservation and protecting it constitutionally ensures that historically marginalized communities get fair access to education, employment, and power.
RBI’S MONETARY POLICY SHIFT AMID DECLINING INFLATION
TOPIC: (GS3) ECONOMY: INDIAN EXPRESS
In June 2025, the Reserve Bank of India (RBI), through its Monetary Policy Committee (MPC), initiated a major policy shift by reducing the repo, and changing its policy stance from accommodative to neutral. This move reflects RBI’s approach to supporting economic growth, as inflation has sharply declined.
What is Repo Rate?
- The Repo Rate is the interest rate at which the Reserve Bank of India (RBI) lends short-term money to commercial banks against government securities.
- It is a tool of monetary policy used by RBI to control inflation and manage liquidity in the economy.
- “Repo” = Repurchase Agreement — banks sell securities to RBI and agree to repurchase them at a later date.
How Does Repo Rate Affect the Economy?
- Controls Inflation: If inflation is high, RBI increases the repo rate → borrowing becomes costlier for banks → loans become expensive for people → spending reduces → inflation comes down.
- Boosts Growth: If growth is slow, RBI cuts the repo rate → borrowing becomes cheaper → banks give loans at lower interest → people and businesses spend more → growth improves.
- Affects Loan EMIs: When repo rate is increased, loan EMIs go up. When repo rate is reduced, EMIs decrease, encouraging housing, car, and education loans.
- Impacts Investment: Lower repo rate = cheaper loans = more private investment in business & industry. Higher repo rate = costly loans = less investment.
Why the Rate Cut Was Done
- Retail inflation dropped from 6.2% in October 2024 to 3.2% in April 2025.
- The average projected inflation for 2025–26 is 3.7%, down from 4.6% earlier.
- With inflation largely under control, the RBI now aims to boost investment and consumption by making borrowing cheaper.
MONETARY POLICY COMMITTEE (MPC)
- The Monetary Policy Committee (MPC) is a statutory body created under the RBI Act, 1934 (amended in 2016).
- It is responsible for deciding India’s monetary policy, especially the repo rate, to control inflation and ensure economic growth.
- The MPC was formed in 2016 to bring transparency and accountability to monetary policy decisions.
Composition of the MPC
- Total 6 members:
- 3 members from the RBI (including the RBI Governor as the Chairperson)
- 3 external members nominated by the Central Government
- Decisions are made by majority vote; the RBI Governor has a casting vote in case of a tie.
Functions of the MPC
- Fixing the Repo Rate:
- The repo rate is the rate at which RBI lends to banks.
- Changing this rate helps to control inflation or boost growth.
- Maintaining Price Stability:
- The main aim is to keep inflation within the target band (currently 4% ± 2%).
- Supporting Economic Growth:
- The MPC balances inflation control with the need to support GDP growth.
- Communicating Policy Clearly:
- After each meeting (held every 2 months), MPC publishes its decision and reasoning, ensuring transparency.
Conclusion
The RBI’s proactive rate cut, supported by a neutral stance, reflects a balanced strategy — maintaining price stability while stimulating growth. As inflation moderates, monetary policy becomes a tool for reviving economic momentum amid global and domestic challenges.
INDIA’S GROWING ELECTRIC CAR MANUFACTURING INDUSTRY
TOPIC: (GS3) ECONOMY: INDIAN EXPRESS
India is set to become the fourth-largest electric car producer by 2030, after China, Europe, and the US, according to the Rhodium Group report. With growing capacity and strong domestic players, India shows significant progress in EV manufacturing.
Highlights of the Report
- Production Capacity Rise: India’s EV four-wheeler manufacturing is expected to rise from 0.2 million to 2.5 million units by 2030.
- Demand-Production Gap: Domestic demand projected to reach 0.4–1.4 million units, leaving a surplus of up to 2.1 million units—indicating export potential.
- Current Market Leaders: Tata Motors, MG Motor, and Mahindra hold 90% share of India’s EV market (2024–25).
- Global Comparison: India will surpass Japan and South Korea in capacity by 2030 but remain behind China (29 million), EU (9 million), and US (6 million).
Policy and Industry Support
- India’s growth in EVs is supported by:
- Subsidies linked to localisation
- Incentives for battery and component makers
- Expansion of charging infrastructure
- High Import Tariffs (up to 100%) protect local industries but reduce consumer choices.
Battery Sector Development
- India is emerging as a key player in battery modules and is set to be the largest module producer outside China, US, and EU.
- However, cell manufacturing still lags behind leading nations.
Current Affairs Relevance (2025)
- Under FAME-II scheme and the PLI scheme for ACC batteries, India is pushing localization and EV ecosystem development.
- Union Budget 2025–26 proposed additional funds for EV infrastructure and battery storage R&D.
Conclusion
India’s EV journey shows rapid capacity growth but faces challenges in cost-competitiveness, export strategy, and technology leadership. Policy focus must now shift to reducing input costs, improving global competitiveness, and ensuring delivery of ongoing projects.
QUANTUM TECHNOLOGY AND ADMINISTRATIVE REFORMS
TOPIC: (GS3) SCIENCE AND TECHNOLOGY: THE HINDU
Quantum communication by IIT-Delhi and DRDO has highlighted India’s potential in the field of quantum cybersecurity. The current policy and administrative setup is proving to be a bottleneck in scaling such innovations.
Quantum Cybersecurity
- Quantum communication allows information to be transferred securely using quantum key distribution (QKD).
- Any interception attempt by a third party can be detected instantly due to the quantum properties of particles.
- Recently, IIT-Delhi & DRDO conducted a successful QKD test over 1 km of free space, showcasing India’s growing capability.
- If extended through satellites, such technology can make nationwide secure communication possible, especially for strategic sectors like defence and intelligence.
National Quantum Mission (NQM)
- Approved in 2023 with a budget of ₹6,003 crore till 2031, focusing on:
- Quantum Communication
- Quantum Computing
- Quantum Sensing & Metrology
- Quantum Materials & Devices
- Mission aims to support fundamental research and build quantum-based applications in strategic areas.
Major Challenges in Implementation
- Delayed Funding & Low VC Participation: Only a small part of the announced funds has been released. Startups receive little venture capital, affecting innovation and product development.
- Cumbersome Administrative Procedures: Multiple approvals, bureaucratic delays, and heavy documentation affect project timelines. Lack of single-window clearances hinders smooth research operations.
- Software Dependency: Critical equipment like cryostats, lasers, and quantum sensors are import-dependent.
- Human Resource Challenges: Low government salaries compared to global offers deter top talent. Researchers often work on short-term contracts and rent expensive equipment due to funding gaps.
Global Comparison
- India’s NQM budget is much smaller compared to:
- U.S.: ₹30,000 crore approx.
- China: ₹1.2 lakh crore approx.
- Global leaders invest heavily in quantum infrastructure and talent retention.
Way Forward: Need for Administrative Reforms
- Simplify funding procedures to ensure real-time access to grants.
- Develop indigenous manufacturing capacity for quantum devices.
- Create dedicated quantum research hubs with autonomy and industry tie-ups.
- Improve public-private partnership (PPP) models to bring private investment and agility.
- Enhance scientist salaries and infrastructure to attract global talent.
Conclusion
India’s progress in quantum technology is promising, but scientific excellence needs matching policy support. Administrative bottlenecks must be removed to unlock the full potential of initiatives like the National Quantum Mission. Only through bold reforms and strategic investment can India emerge as a global leader in this futuristic domain.
RISK OF NUCLEAR DISASTER FROM POSSIBLE ATTACK ON IRAN’S BUSHEHR PLANT
TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU
The ongoing military tensions between Israel and Iran have triggered global alarm, especially over the safety of nuclear installations. The International Atomic Energy Agency (IAEA) recently warned that any direct attack on Iran’s Bushehr nuclear power plant could cause a serious nuclear crisis in West Asia.
What is the Bushehr Nuclear Plant?
- Iran’s first civilian nuclear reactor, located in southern Iran.
- Initially developed by German engineers in the 1970s; completed with Russian assistance since the 1990s.
- Currently holds thousands of kilograms of nuclear material.
IAEA Warnings and Risks Involved
- Rafael Grossi, Director-General of the IAEA, told the UN Security Council that a strike on Bushehr could lead to massive radioactive release.
- Even an attack on the power supply lines of the plant could lead to a reactor meltdown.
- A worst-case scenario would include:
- Mass evacuations within hundreds of kilometres, including parts of Gulf nations.
- Public advised to take iodine tablets to counter radiation.
- Food and water safety could be compromised.
- Disruption to global oil supply lines through the Gulf region.
International ATOMIC Energy Agency (IAEA),
- Established: 1957 under the UN system
- Headquarters: Vienna, Austria
- Motto: Atoms for Peace and Development
- Current Director General (2025): Rafael Mariano Grossi (from Argentina)
Objectives
- Promote peaceful use of nuclear energy for electricity, medicine, agriculture, etc.
- Prevent the spread of nuclear weapons through safeguards and inspections.
- Ensure nuclear safety and security, especially for civilian nuclear facilities.
- Assist member states in nuclear science and technology for development.
Conclusion
The situation underscores the critical need for diplomacy in volatile regions. Attacks on nuclear plants can lead to regional environmental disasters, affect millions of lives, and destabilise the global economy. Agencies like the IAEA must be empowered to ensure nuclear safety and peace through verification and dialogue.
GLOBAL DROUGHT OUTLOOK REPORT
TOPIC: (GS3) ENVIRONMENT: THE HINDU
The Global Drought Outlook Report, released by the Organization for Economic Co-operation and Development (OECD), presents urgent warnings about the rising frequency and intensity of droughts across the globe due to climate change. It also provides policy-level solutions for building drought resilience.
Highlights of the Report
- Nearly 40% of global land is now vulnerable to more frequent and intense droughts.
- Economic costs of droughts are increasing by 3%–7.5% annually, with a minimum 35% increase in losses expected by 2035.
- Since 1980, about 37% of the world’s land has suffered soil moisture decline.
- Many rivers and aquifers are showing falling water levels, and groundwater tables have declined significantly over the years.
- Though droughts account for only 6% of natural disasters, they cause nearly 34% of disaster-related deaths, especially affecting Sub-Saharan Africa.
- Droughts are also linked to forced migration, livelihood loss, and regional instability.
Recommendations
- Countries need to develop drought early warning systems, improve water conservation practices, and enhance groundwater recharge methods.
- Integrated water resource management, afforestation, and crop diversification should be promoted.
- The report stresses the need for long-term adaptation strategies and international cooperation.
Current Affairs Relevance
- India’s 2023–24 El Niño-induced drought significantly impacted agriculture and rural incomes.
- The findings are important for India’s National Water Mission and Disaster Risk Reduction policies.
Conclusion
The report is a timely reminder that drought is no longer a rare event but a recurring global risk. Proactive drought planning and sustainable water use are essential to ensure climate resilience and food security.
FASTAG ANNUAL PASS SCHEME
TOPIC: (GS3) ECONOMY: THE HINDU
To promote seamless highway travel and encourage digital payments, the Ministry of Road Transport and Highways has introduced the FASTag Annual Pass Scheme for private vehicles. This new initiative aims to reduce congestion and simplify toll transactions on National Highways (NH) and Expressways (NE).
Features of the Scheme
- Launched in 2025, the scheme offers an annual toll pass for ₹3,000, applicable to private cars, jeeps, and vans.
- Once activated, the pass enables free passage at all NH and NE toll plazas for 200 trips or one year, whichever comes first.
- After 200 trips, the system reverts to the standard FASTag toll deduction process.
- Users may re-purchase the pass even if 200 trips are used before a year ends.
- It is non-transferable and linked to a specific vehicle and its registered FASTag.
- The pass is valid only for non-commercial private vehicles.
- Activation requires vehicle verification and payment via the Rajmargyatra app or NHAI website.
Operational Mechanism
- At point-based plazas, one crossing = one trip; round trip = two trips.
- At closed toll systems, one entry-exit pair = one trip.
Significance
- Promotes cashless and digital tolling.
- Reduces waiting time and congestion at toll booths.
- Encourages pre-paid system to ease long-distance travel.
- Supports the government’s goal of enhancing digital infrastructure and mobility efficiency.
Current Affairs Relevance:
- This initiative is part of India’s broader strategy for transport sector reforms under the Bharatmala Pariyojana and the Digital India programme.
- It aligns with India’s push towards smart transportation systems and user-centric road services.
Conclusion
The FASTag Annual Pass is a forward-thinking step to simplify toll collection, promote digital governance, and ease travel for private vehicle users, helping India modernize its highway infrastructure.