Archives
(PRELIMS Focus)
Subject: Economy (External Sector & Monetary System) (Gold Reserves, Central Banks, Foreign Exchange Reserves, International Financial Institutions)
Why in News?
According to the World Gold Council (WGC) Central Bank Gold Reserves Survey 2026, a record 45% of central banks surveyed expect to increase their gold holdings over the next 12 months. Further, 89% of respondents believe global central bank gold reserves will continue to rise, reflecting gold’s growing importance in reserve management amid geopolitical and economic uncertainties.
- Members include leading gold mining companies worldwide.
- Promotes responsible gold mining, investment, and research on gold markets.
Key Functions
- Publishes reports on global gold demand and supply.
- Conducts the annual Central Bank Gold Reserves Survey (CBGR).
- Develops international standards for gold markets.
- Provides data through Goldhub, WGC’s research platform. a year.
- Only 1% expect a decline in holdings. Store of long-term value. ** in global reserves to decline over the next five years, while gold’s share is expected to increase. and India’s Foreign Exchange Reserves**
Reserve Assets Include
- Foreign currencies.
- Gold reserves.
- Special Drawing Rights (SDRs).
- Reserve Tranche Position (RTP) in the ****.
Why Central Banks Hold Gold
- No counterparty risk.
- Universally accepted asset.
- Protection during financial crises.
- Diversification from currency-based assets.
UPSC Prelims-Oriented Analysis
Static–Dynamic Linkage
- Gold reserves as a component of foreign exchange reserves.
- Role of central banks in reserve management.
- IMF-related reserve assets (SDR and RTP).
- Trends in global monetary systems and reserve diversification.
Source/Reference:
Subject: Environment & Ecology / Agriculture / Rural Development (Watershed Management, Rainfed Agriculture, Land Resource Conservation, World Bank-Assisted Programmes)
Why in News?
The National Rainfed Area Authority (NRAA) recently organized the Second National-Level Consultation Meeting on the draft National Technical Guidelines (NTG) for improved watershed management under the REWARD Programme. The consultation focused on strengthening scientific, technology-driven, and climate-resilient watershed development across India.
What is the REWARD Programme?
REWARD stands for Rejuvenating Watersheds for Agricultural Resilience through Innovative Development.
- It is a World Bank-assisted programme implemented by the Department of Land Resources (DoLR), Ministry of Rural Development.
- Aims to improve watershed management in rainfed regions through modern technologies, scientific planning, and community participation.
- Supports sustainable management of land and water resources while enhancing agricultural productivity and climate resilience.
Objectives of REWARD
- Improve productivity in rainfed agricultural areas.
- Enhance groundwater recharge and water security.
- Restore degraded landscapes.
- Build resilience against climate change and drought.
- Strengthen post-project sustainability of watershed assets.
- Promote data-driven watershed governance.
Key Features
- Scientific Watershed Management
- Use of Land Resource Inventory (LRI) and hydrological assessments.
- Adoption of evidence-based planning approaches.
- Technology Integration
- Drone-based mapping and high-resolution imagery.
- Remote Sensing and GIS-enabled monitoring.
- Decision Support Systems (DSS).
- Technology-enabled Monitoring & Evaluation (M&E).
- AI-enabled applications and digital platforms.
- Community Participation
- Greater involvement of:
- Farmers
- Panchayati Raj Institutions (PRIs)
- Local watershed institutions
- NGOs and technical service providers.
Institutional Framework
Key Agencies
- Department of Land Resources (DoLR)
- National Rainfed Area Authority (NRAA)
- World Bank
- National Bank for Agriculture and Rural Development
- Indian Council of Agricultural Research
Current REWARD States
- Karnataka
- Odisha
Important Themes under NTG
- Land Resource Inventory (LRI)
- Hydrology
- Watershed Sustainability
- Livelihood Promotion
- Community Mobilization
- Remote Sensing & GIS-based Web Portals
- Climate Resilience
- Groundwater Recharge
UPSC Prelims-Oriented Analysis
Static–Dynamic Linkage
- Links with:
- Watershed Development Programmes.
- Rainfed Area Development.
- Desertification and Land Degradation.
- Sustainable Agriculture and Climate Adaptation.
Source/Reference:
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2274394®=48&lang=1
Subject: International Relations / Environment & Ecology (Blue Economy, Sustainable Ocean Governance, Indian Ocean Region, Global South Cooperation)
Why in News?
The Mombasa Declaration was adopted during the Global South Blue Economy Summit 2025 held in Mombasa, Kenya. The declaration emphasizes sustainable utilization of ocean resources, marine conservation, climate resilience, and enhanced cooperation among developing countries to harness the potential of the Blue Economy.
What is the Mombasa Declaration?
- A joint declaration adopted by countries participating in the Global South Blue Economy Summit.
- Named after Mombasa, Kenya’s major Indian Ocean port city.
- Focuses on balancing economic growth from marine resources with environmental sustainability.
- Seeks to strengthen collaboration among developing countries in ocean-based sectors.
Key Objectives of the Declaration
- Sustainable Blue Economy Development
- Promote sustainable use of marine and coastal resources.
- Support ocean-based livelihoods while preserving marine ecosystems.
- Marine Conservation
- Combat marine pollution, including plastic waste.
- Protect coral reefs, mangroves, seagrass beds, and marine biodiversity.
- Climate Resilience
- Enhance adaptation strategies for coastal communities vulnerable to:
- Sea-level rise
- Coastal erosion
- Extreme weather events
- Blue Finance
- Mobilize investments for sustainable marine infrastructure and conservation projects.
- Encourage innovative financing mechanisms for ocean governance.
- Capacity Building and Technology Transfer
- Facilitate knowledge sharing, scientific research, and marine technology cooperation among Global South countries.
What is the Blue Economy?
According to the World Bank, the Blue Economy refers to the sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of marine ecosystems.
Major Components
- Fisheries and aquaculture
- Maritime transport
- Coastal tourism
- Offshore renewable energy
- Marine biotechnology
- Seabed resources
Importance for India
- India has a coastline of approximately 7,500 km.
- Blue Economy is a key pillar of India’s maritime vision under:
- SAGAR (Security and Growth for All in the Region)
- Maritime India Vision 2030
- Deep Ocean Mission
- Strengthens India’s engagement with African and Indian Ocean littoral countries.
UPSC Prelims-Oriented Analysis
Static–Dynamic Linkage
- Ocean governance and sustainable development.
- International environmental agreements.
- India’s maritime strategy in the Indian Ocean Region.
Source/Reference:
Subject: Agriculture / Economy / Geography (Geographical Indication (GI) Tags, High-Value Crops, Horticulture, Kashmir Valley Agriculture)
Why in News?
The ongoing geopolitical tensions in West Asia and a significant decline in saffron production in Iran—the world’s largest saffron producer—have led to a surge in global demand for Kashmir Saffron. Consequently, prices and exports of Kashmiri saffron have increased despite a decline in local production.
What is Kashmir Saffron?
- Saffron is obtained from the dried stigmas of the flower Crocus sativus.
- Known as “Red Gold” due to its high value.
- India is among the few countries producing saffron, with cultivation concentrated in Jammu & Kashmir.
- Major cultivation area: Pampore, often called the Saffron Town of India.
Key Characteristics
Why Kashmir Saffron is Unique
- Higher concentration of:
- Crocin (colour)
- Safranal (aroma)
- Picrocrocin (flavour)
- Longer and thicker stigmas than many competing varieties.
- Distinct deep-red colour and strong fragrance.
GI Tag
- Kashmir Saffron received a Geographical Indication (GI) Tag in 2020, enhancing authenticity and export potential.
Recent Developments
- Iran’s production reportedly declined significantly, creating supply shortages in global markets.
- Kashmiri saffron prices increased from around ₹2.5 lakh/kg to ₹3.2–3.7 lakh/kg in many markets.
- Exports have risen to destinations such as:
- UAE, USA, UK, Gulf countries.
Challenges Facing Saffron Cultivation
- Erratic rainfall and climate change.
- Inadequate irrigation infrastructure.
- Urbanization and shrinking saffron fields.
- Adulteration in markets.
- Rising cultivation costs.
Government Initiatives
National Saffron Mission (NSM)
- Launched in 2010.
- Focuses on:
- Irrigation facilities.
- Quality improvement.
- Scientific post-harvest management.
- Farmer support and productivity enhancement.
India International Kashmir Saffron Trading Centre
- Located at Pampore.
- Supports grading, storage, branding, and marketing of saffron.
UPSC Prelims-Oriented Analysis
Static–Dynamic Linkage
- GI-tagged agricultural products of India.
- High-value horticultural crops.
- Climate change impacts on agriculture.
- Agricultural exports and value chains.
Source/Reference:
Subject: Environment & Ecology (Desertification, Land Degradation, Drought, UNCCD, Sustainable Land Management)
Why in News?
World Day to Combat Desertification and Drought was observed globally on 17 June 2026 to raise awareness about land degradation, desertification, and drought. The observance highlighted the urgent need for sustainable land management and ecosystem restoration to achieve global environmental and development goals.
About the World Day to Combat Desertification and Drought
- Observed annually on 17 June.
- Established by the United Nations General Assembly (UNGA) in 1994.
- Marks the adoption of the United Nations Convention to Combat Desertification (UNCCD) on 17 June 1994.
- Aims to promote public awareness regarding desertification, drought resilience, and land restoration.
Theme for 2026
“Restore the Land. Unlock the Opportunities.”
- Focuses on the economic, social, and environmental benefits of restoring degraded land.
- Emphasizes job creation, food security, water security, and climate resilience through land restoration.
What is Desertification?
- Desertification refers to land degradation in arid, semi-arid, and dry sub-humid areas resulting from:
- Climatic variations
- Human activities
Major Causes
- Deforestation
- Overgrazing
- Unsustainable agricultural practices
- Soil erosion
- Excessive groundwater extraction
- Climate change
United Nations Convention to Combat Desertification (UNCCD)
United Nations Convention to Combat Desertification
- One of the three Rio Conventions, along with:
- United Nations Framework Convention on Climate Change
- Convention on Biological Diversity
- Legally binding international agreement on land degradation.
- Headquarters: Bonn.
- India became a Party in 1996.
Land Degradation in India
Key Facts
- According to the Desertification and Land Degradation Atlas of India, around 29.7% of India’s geographical area is affected by land degradation and desertification.
- Major affected states include:
- Rajasthan
- Gujarat
- Maharashtra
- Karnataka
- Jharkhand
India’s Commitment
- Restore 26 million hectares of degraded land by 2030.
- Achieve Land Degradation Neutrality (LDN) targets under UNCCD.
Important Government Initiatives
- National Action Programme (NAP) to Combat Desertification
- India’s primary strategy under UNCCD.
- PMKSY – Watershed Development Component
- Promotes soil and water conservation.
- Green India Mission
- Enhances forest and tree cover.
- National Afforestation Programme
- Supports ecological restoration of degraded lands.
- REWARD Programme
- Promotes climate-resilient watershed management in rainfed regions.
UPSC Prelims-Oriented Analysis
Static–Dynamic Linkage
- Environment conventions and protocols.
- Climate change adaptation.
- Soil conservation and watershed management.
- Sustainable Development Goals (SDGs), especially SDG 15 (Life on Land).
Source/Reference:
Subject: Geography / Environment / Economy (River Valley Projects, Hydropower Development, Inter-State Water Management, Yamuna River System)
Why in News?
The long-pending Kishau Dam Project has moved forward after Himachal Pradesh and Uttarakhand resolved an eight-year deadlock over cost-sharing and implementation. The project is expected to improve hydropower generation, water storage, irrigation, and flood control in the Yamuna basin.
About the Kishau Dam Project
- Kishau Dam is a multipurpose storage project proposed on the Yamuna River.
- It is located on the border of Himachal Pradesh and Uttarakhand.
- The project is being developed under the framework of the Upper Yamuna River Board (UYRB).
- It is one of the largest storage projects planned in the Yamuna basin.
- The proposed installed hydropower generation capacity is 660 MW.
Objectives of the Project
Hydropower Generation
- Produce renewable electricity for northern India.
- Strengthen energy security in the region.
Water Storage
- Create a large reservoir for regulated water release.
- Ensure water availability during dry seasons.
Irrigation and Drinking Water
- Benefit downstream states such as Delhi, Haryana, Rajasthan, and Uttar Pradesh.
- Improve agricultural productivity and urban water supply.
Flood Management
- Help moderate floods during the monsoon season by regulating river flow.
About the Yamuna River
- The Yamuna is the largest tributary of the Ganga River.
- It originates from the Yamunotri Glacier near the Bandarpunch range in Uttarakhand.
- Important tributaries include Tons, Chambal, Sind, Betwa, and Ken.
- A frequently asked UPSC fact is that the Tons River contributes more water than the Yamuna at their confluence.
Upper Yamuna River Board (UYRB)
- Established in 1995 following the 1994 inter-state agreement on Yamuna waters.
- Responsible for regulating and monitoring water sharing among basin states.
- Member states include Himachal Pradesh, Uttarakhand, Haryana, Uttar Pradesh, Rajasthan, and Delhi.
Challenges
- Rehabilitation and resettlement of affected populations.
- Ecological impacts on Himalayan River ecosystems.
- Concerns regarding biodiversity loss and submergence of land.
- Inter-state coordination and financial commitments.
UPSC Prelims-Oriented Analysis
- The project links static topics such as the Yamuna River System, river valley projects, hydropower development, and inter-state water management with current developments.
- UPSC may ask about the location of the project, the river involved, the role of UYRB, or important tributaries of the Yamuna.
Source/Reference
(MAINS Focus)
GS III – Internal Security
Challenges to Internal Security through Terrorism, Linkages of Terrorist Groups, and Security Forces
Introduction
Over the past 12 years, India’s counter-terrorism framework has shifted from reactive crisis management to a proactive, doctrine-driven system. Earlier challenges included high terrorist incident rates, frequent unrest in J&K, and limited legal tools to designate individuals as terrorists. Since then, India has strengthened its legislative, institutional, operational, and diplomatic responses, culminating in the 2026 National Counter-Terrorism Policy “PRAHAAR.”
Background and Conceptual Foundation
Historical Context and Challenge Landscape (2014)
- Pakistan’s ISI continued providing training, arms, and financial support to LeT, JeM, and Hizbul Mujahideen
- Kashmir separatism sustained by Over-Ground Worker networks complicating governance
- Emergence of ISIS introduced online radicalisation and self-radicalised attack threats
- Legal framework lacked provisions to designate individuals as terrorists
Constitutional and Legal Framework Evolution
- UAPA Amendment Act, 2019: Empowered Central Government to designate individuals as terrorists; 57 individuals designated including Masood Azhar, Dawood Ibrahim
- Bharatiya Nyaya Sanhita, 2023: First statutory definitions for terrorism and organised crime; death penalty where terrorist act results in death
- NIA Amendment Act, 2019: Expanded jurisdiction to include cyber terrorism and offences outside India
- PMLA Amendments: Sharper instruments to trace and confiscate terror-linked assets
Significance and Rationale
Institutional Strengthening and Intelligence Integration
- NIA Transformation: Budget grew from ₹91.32 crore (2014-15) to ₹394.66 crore (2024-25); conviction rate of 92.70% – highest globally
- MAC Network: Connects 28 central and state agencies; ₹500 crore technological upgrade with AI/ML-enabled analytical tools
- NATGRID: Connects 11 Central User Agencies, all 28 States and 8 UTs; GANDIVA tool enables multi-source intelligence analysis
- CCTNS 2.0: Connects all 17,798 police stations, eliminating information silos
Operational Doctrine: From Strategic Restraint to Deterrence
- Surgical Strikes (2016): Pre-emptive action against terrorist launch pads across LoC
- Balakot Airstrike (2019): Precision strike against JeM training facility in Pakistan
- Operation Sindoor (2025): Targeted terrorist infrastructure in Pakistan and PoJK
- Established principle: Terrorist attacks invite swift, calibrated, multidimensional consequences
Key Issues and Challenges
Evolving Nature of Terror Threats
- Terrorist networks moving towards decentralised, digitally mediated communication
- Use of end-to-end encrypted platforms, dark web, and cryptocurrencies
- “White-collar radicalisation”: Educated, economically secure youth drawn into extremism
- Radicalisation diffusing into educational institutions and workplaces
Counter-Radicalisation Gap
- India’s response remains primarily security-centric (intelligence gathering, disruption, prosecution)
- PRAHAAR acknowledges need to “attenuate conditions enabling terrorism” but implementation weak
- Global best practices offer lessons:
- UK’s “Prevent” strategy for early identification
- Denmark’s Aarhus Model for community engagement
- Germany’s HAYAT programme for family intervention
Technological and Fifth Generation Warfare Challenges
- Fifth Generation Warfare blurs traditional boundaries between war and peace
- Terrorist groups collaborate with organised criminal networks
- Exploitation of e-commerce platforms for procuring materials
- Drone-based attacks emerging as new threat vector
- NSG Ajit Doval’s “0.5 front”: Modern conflicts extend beyond military engagements
Way Forward
Strengthening Counter-Radicalisation Ecosystem
- Develop dedicated national counter-radicalisation policy complementing counter-terrorism framework
- Establish early identification mechanisms through multi-agency coordination
- Implement deradicalisation programs in prisons with continuous monitoring
- Engage community leaders, religious heads, and NGOs
- Develop counter-narrative campaigns addressing online radicalisation
Technological and Institutional Modernisation
- Continue investment in AI/ML-enabled threat detection
- Expand NATGRID’s analytical capabilities
- Develop capabilities against drone-based threats and cyber-attacks
- Strengthen CyMAC with adequate resources and state-level integration
- Enhance public-private partnerships with e-commerce platforms and social media companies
Diplomatic and Legal Consolidation
- Continue leveraging FATF and UN platforms to expose state-sponsored terrorism
- Pursue UN Comprehensive Convention on International Terrorism (CCIT)
- Expand Mutual Legal Assistance Treaties and extradition arrangements
- Codify PRAHAAR into operational guidelines for all states and agencies
- Establish clear accountability mechanisms for consistent implementation across federal structure
Conclusion
India’s counter-terrorism transformation reflects a shift from managing terror to dismantling its root causes. The PRAHAAR doctrine consolidates reforms across prevention, response, capacity-building, and global cooperation. However, emerging threats like online radicalisation and hybrid warfare require continuous adaptation. Security now involves society alongside the state, aiming toward a resilient, development-focused “Jan-Kalyan” outcome.
Practice Question
- “India’s counter-terrorism strategy has shifted from reactive response to proactive deterrence, but gaps in counter-radicalisation remain.” Critically examine and suggest a way forward for a holistic internal security framework. (250 words, 15 marks)
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2275007®=3&lang=1
GS III – Indian Economy
Employment Generation, Labour Reforms, and Inclusive Development
Introduction
India’s employment landscape has shifted significantly over the past decade, supported by initiatives like Make in India, Digital India, Startup India, and Skill India. From economic fragility in 2013 to a leading startup and digital economy today, employment generation has strengthened, reflected in improved employment elasticity. The PM Viksit Bharat Rozgar Yojana (PMVBRY), with a ₹1 lakh crore outlay targeting 3.5 crore jobs, marks a major push toward large-scale job creation.
Background and Conceptual Foundation
Historical Context and Challenge Landscape (2014)
- India counted among “Fragile Five” economies in 2013 with high inflation, fiscal deficit, and currency volatility
- Employment elasticity of 0.008 between 2011-12 and 2017-18 indicated weak job creation
- Social security coverage limited to only 25 crore people (19% of population) in 2015
- Limited formal sector job creation; informal economy dominated employment landscape
Policy Framework Evolution
- Make in India (2014): Manufacturing promotion through FDI liberalisation and infrastructure development
- Digital India (2015): Digital public infrastructure creating new employment opportunities
- Startup India (2016): Built one of the largest startup ecosystems globally
- Skill India (2015): Skill development and vocational training expansion
- PM Mudra Yojana (2015): Micro-financing for entrepreneurship
- National Career Service Portal: Digital job matching platform
Significance and Measurable Outcomes
Employment Generation
- 17 crore jobs created between 2014-24 (compared to 2.9 crore during 2004-14) as per RBI KLEMS data
- Employment elasticity improved from 0.008 (2011-12 to 2017-18) to 1.11 (2017-18 to 2023-24)
- Employment rate increased from 46.8% (2017-18) to 57.4% (2025)
- Unemployment declined to ~3.1%, below global average of 4.8%
- EPFO payroll data: 8 crore formal-sector jobs added between 2017-2025
Social Security Expansion
- Coverage increased from 25 crore (19%) in 2015 to 94 crore (64.3%) in 2025
- International recognition: International Social Security Association’s Award for Outstanding Achievement in Social Security (2025)
- Multiple schemes integrated:
- Employee State Insurance Corporation (ESIC)
- Employees’ Provident Fund Organisation (EPFO)
- Pradhan Mantri Shram Yogi Maandhan (PMSYM)
- National Pension System (NPS) expansion
Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY)
- Outlay: Nearly ₹1 lakh crore
- Target: 3.5 crore employment opportunities over two years
- Part A (Worker Incentive): First-time employees receive financial assistance up to ₹15,000 in two instalments
- Part B (Employer Incentive):
- Incentives up to ₹3,000 per employee per month
- Up to 4 years for manufacturing employers
- Up to 2 years for other sectors
- Current Disbursement: ₹2,400 crore incentives to 15 lakh beneficiaries through DBT
- Nationwide Implementation: Events across 200 major industrial clusters
Key Issues and Challenges
Quality of Employment
- Precarious employment: Gig economy workers lack traditional benefits and job security
- Platformisation of work: Rapid growth of app-based platforms without adequate regulatory framework
- Underemployment: Educated youth working in jobs below their skill levels
- Informal sector dominance: Despite formalisation efforts, large workforce remains in informal employment
Skill-Job Mismatch
- Skill gap: India’s workforce lacks industry-relevant skills despite Skill India initiatives
- Technological disruption: Automation and AI threaten traditional job categories
- Educational outcomes: Disconnect between academic curricula and industry requirements
- Limited vocational training penetration: Only small percentage of workforce has formal vocational training
Regional Disparities
- Uneven industrial development: Employment concentrated in few states
- Rural-urban divide: Limited non-farm employment opportunities in rural areas
- Migration challenges: Seasonal migration creates social and economic vulnerabilities
- MSME constraints: Small enterprises face compliance burden affecting formalisation
Labour Law Implementation
- Multiple Labour Codes: Implementation challenges across 4 codes (Code on Wages, Industrial Relations, Social Security, OSH & Working Conditions)
- Compliance burden: Small businesses struggle with multiple registrations and returns
- Union representation: Declining union membership affecting worker bargaining power
- Contracted workforce: Growing practice of contract labour limiting job security
Way Forward
Strengthening Employment Quality
- Universal Social Security: Extend coverage to all workers including gig and platform employees
- Code of Practice: Develop regulatory framework for platform economy addressing wages, benefits, working conditions
- Quality monitoring: Track not just job creation but job quality indicators
- Productivity-linked wages: Incentivise productivity improvement in informal sector
Skill Ecosystem Reform
- Industry-driven curricula: Regular curriculum revision based on industry 4.0 requirements
- National Apprenticeship Promotion Scheme: Expand apprenticeship opportunities
- Digital skilling: Focus on AI, data analytics, and emerging technologies
- Lifelong learning: Create platforms for continuous skill upgrading
MSME and Entrepreneurship Support
- Compliance simplification: Single window for labour and tax compliance
- Technology adoption: Support MSMEs in Industry 4.0 adoption
- Credit access: Expand MUDRA and other micro-financing mechanisms
- Cluster development: Focus on MSME clusters for infrastructure and market access
Regional and Rural Focus
- Rural non-farm sector: Promote rural entrepreneurship and agro-processing
- Infrastructure development: Improve connectivity and logistics in backward regions
- State-level strategies: Customised employment strategies for different states
- District-level monitoring: Create employment surveillance at district level
Conclusion
India’s employment transformation reflects reforms, digital infrastructure, and welfare-led growth. Job creation has risen significantly from 2004–14 to 2014–24, supported by proactive policies. The PMVBRY scheme introduces a worker–employer partnership model to boost employment generation. However, challenges like job quality, skill gaps, and gig economy regulation persist. Moving toward Viksit Bharat, inclusive growth must ensure equitable distribution of economic gains.
Practice Question
- India’s employment shift reflects a ‘reform–rozgar’ model, but job quality and gig economy issues remain. Critically examine in the context of India’s labour market and suggest measures for sustainable, quality employment. (250 words, 15 marks)