Category: Economy

Context:

• Budget clarified that capital gains tax exemption on sovereign gold bonds will not apply to investors who purchase them in the secondary market and hold them to maturity.

About Sovereign Gold Bonds:

• • Nature: These bonds are government securities denominated in grams of gold.

• Launch: The Sovereign Gold Bond (SGB) Scheme was first launched by the Government of India (GOI) on October 30, 2015.

• • Significance: They are substitutes for holding physical gold. Investors have to pay the issue price, and the bonds will be redeemed upon maturity.
  • Issuance: The bond is issued by the Reserve Bank on behalf of the GOI.

• Eligibility: The bonds will be restricted for sale to resident Indian entities, including individuals, Hindu Undivided Family (HUF), Trusts, Universities and Charitable Institutions.

• Investment limits: The bonds are issued in denominations of one gram of gold and in multiples thereof. The minimum investment in the bond shall be one gram, with a maximum subscription limit of 4 kg for individuals, 4 kg for HUFs, and 20 kg for trusts.

• Term: The term of the bond will be for a period of 8 years, with an exit option in the 5th, 6th, and 7th years, to be exercised on the interest payment dates.
• Selling: Bonds are sold through offices or branches of Nationalised Banks, Scheduled Private Banks, Scheduled Foreign Banks, designated Post Offices, Stock Holding Corporation of India Ltd. (SHCIL), and the authorised stock exchanges either directly or through their agents.

Source:

• The Hindu Businessline

Category: History and Culture

Context:

• The Prime Minister recently inaugurated the Adampur Airport in Punjab and renamed it after Sri Sant Guru Ravidas Ji to honour the revered saint on his birth anniversary.

About Guru Ravidas:

• • Time period: Guru Ravidas (1377-1527 C.E.) was a renowned saint known for his contributions to the Bhakti movement. His devotional songs and verses made a lasting impact upon the Bhakti Movement.

• Other names: Guru Ravidas is also known as Raidas, Rohidas, and Ruhidas.

• • Birth: Ravidas was born in a village called Sir Gobardhanpur, near Varanasi in Uttar Pradesh, India. Today, his birthplace is a special place known as Shri Guru Ravidass Janam Asthan. His birthday is celebrated as Ravidas Jayanti.
  • Contemporaries: Ravidas is traditionally seen as a student of the bhakti-poet Ramananda. He is also thought to have lived around the same time as Kabir, another famous poet-saint.
  • Contributions: He was a well-known poet. His poems, written in local languages, inspired many people. 41 of his devotional songs and poems are found in the Sikh holy book, the Guru Granth Sahib. Many of his poems are also in the Panch Vani text of the Dadu Panthi tradition within Hinduism. 
  • Philosophy and teachings: The core of Guru Ravidas’s philosophy was the rejection of the caste system and the promotion of human rights and dignity. He envisioned a society called ‘Beghumpura’ (a city without sorrow), where there is no suffering, no fear, and no discrimination.
  • Symbolism: He also became a symbol of opposition to untouchability in society by the higher caste people for the lower caste people. He emphasised the philosophy of spiritual freedom.

• Nirguna saint: He abandoned the saguna (with attributes, image) forms of supreme beings and focussed on the nirguna (without attributes, abstract) form of supreme beings.

• Disciple: Meera Bai, a revered figure in Hindu spiritualism, is said to have considered Guru Ravidas as her spiritual Guru.

• Ravidassia religion: The Guru’s teachings now form the basis of the Ravidassia religion. Ravidassias believe that Guru Ravidas should be treated as a saint just like the other gurus, as he lived before the first Sikh Guru, and his teachings were studied by the Sikh Gurus.

• Holy book: The Ravidassia community adopted the Amrit Bani Guru Ravidass as its holy book and established its own symbols and rituals.

Source:

• • • India Today

Category: Environment and Ecology

Context:

• Recently, the Finance Minister proposed an outlay of Rs 20,000 crore over the next five years in Carbon Capture Utilisation and Storage (CCUS) technologies.

About Carbon Capture Utilisation and Storage (CCUS):

• • Definition: CCUS refers to technologies designed to capture CO2 emissions from large point sources and either reuse them or store them permanently underground to prevent atmospheric release.
  • Objective: It aims to mitigate carbon dioxide (CO2) emissions from sources like power plants, refineries and other industrial facilities.

• Process: It involves a three-stage process:

• • Capture: This involves separating CO₂ from other gases. Methods include post-combustion (after burning fuel), pre-combustion (before full combustion), oxy-fuel combustion (burning in pure oxygen), and Direct Air Capture (DAC).
  • Transport: Captured CO₂ is compressed and moved via pipelines, ships, or trucks.
  • Utilisation or storage: CCU converts CO₂ into products like Green Urea or building materials, or uses it for Enhanced Oil Recovery (EOR). CCS involves injecting CO₂ into geological formations such as depleted oil/gas fields or saline aquifers for permanent storage.
• Capturing methods: The main methods for capturing CO2 are: post-combustion; pre-combustion; and oxy-fuel combustion.
  • Post-combustion technology: It separates CO2 from the flue gas, by using a chemical solvent for instance, after the fuel is burnt.
  • Pre-combustion methods: It involves converting the fuel into a gas mixture consisting of hydrogen and CO2 before it is burnt. 
  • Oxy-fuel Combustion: Oxy-fuel technology involves burning a fuel with almost pure oxygen to produce CO2 and steam, with the released CO2 subsequently captured.
• Policy: NITI Aayog released a policy framework in 2022 emphasizing CCUS for sustainable development and an “Atmanirbhar Bharat”.
• Challenges: These include high capital cost, technological maturity, and infrastructural requirements for transport and storage.
• Significance: CCUS can play a strategic role in global decarbonisation efforts in a number of ways.
  • Reducing emissions in ‘hard-to-abate’ industries
  • Producing low-carbon electricity and hydrogen, this can be used to decarbonise various activities
  • Removing existing CO2 from the atmosphere.

Source:

• The Indian Express

Category: Science and Technology

Context:

• Recently, the Union Minister for Finance announced the launch of Biopharma Shakti initiative in budget 2026-27.

About Biopharma SHAKTI:

• • Full form: SHAKTI stands for Strategy for Healthcare Advancement through Knowledge, Technology & Innovation.

• Objective: It is designed to develop India into a global biopharmaceutical manufacturing hub.

• • Ecosystem: This will build the ecosystem for domestic production of biologics and biosimilars. It will include a Biopharma-focused network with 3 new National Institutes of Pharmaceutical Education and Research (NIPER) and upgrading 7 existing ones.

• Network: It will also create a network of over 1000 accredited India Clinical Trials sites.

• Financial outlay: It involves Rs. 10,000 crore over the next five years.

• Significance: This initiative will catalyse investments in advanced biomanufacturing infrastructure, promote innovation and enhance India’s capabilities in high-value, next-generation therapies.
• Focus areas: It will focus on building a biopharma-centric innovation and manufacturing network, responding to India’s rapidly changing disease profile marked by a rising burden of non-communicable diseases such as diabetes, cancer and autoimmune disorders.

About Biologics and Biosimilars:

• Biologics: These are complex medicines derived from living organisms. Their complex manufacturing processes have traditionally limited their availability, primarily serving high-income countries.
• Biosimilars: These are highly similar versions of biologic medicines, developed through comprehensive analytical studies and rigorous clinical trials to ensure therapeutic equivalence. These products offer equally effective and safe alternatives thereby increasing market competition and reducing the costs of biologic therapies.

Source:

• PIB

Category: Government Schemes

Context:

• In the Union Budget, Finance Minister announced the launch of the Mahatma Gandhi Gram Swaraj Initiative aimed at strengthening Khadi, handloom, and handicrafts.

About Mahatma Gandhi Gram Swaraj Initiative (MGGSI):

• • Launch: It was announced in the Union Budget 2026-27 to strengthen India’s traditional craft sectors.  
  • Objective: It is aimed at making traditional rural industries more competitive while ensuring sustainable livelihoods for artisans and weavers.
  • Focus areas: It is a major initiative to strengthen the khadi, handloom, and handicrafts sector by improving global market access, branding, and market linkages.
  • Beneficiaries: The programme mainly targets weavers, village industries, beneficiaries of the One District One Product (ODOP) initiative, and rural youth, and MGGSI aims to address structural challenges.
  • Preservation of traditional craftsmanship: MGGSI encourages artisans to adopt modern production methods, while preserving traditional craftsmanship. The initiative also focuses on improving market access by better branding and marketing to enable artisans to reach organised retail, export markets, and online platforms.

• Atmanirbhar Bharat: It aligns with the “Vocal for Local” philosophy and efforts to strengthen micro, small, and medium enterprises (MSMEs). By reinforcing traditional industries, the initiative seeks to generate sustainable employment, and reduce rural distress, thereby aligning with the broader vision of Atmanirbhar Bharat.

• Constitutional link: While the 73rd Constitutional Amendment Act 1992 provided the political framework for Panchayati Raj, schemes like MGGSI aim to provide the economic foundation necessary for true self-rule.

Source:

• • • The Indian Express

(GS Paper III – Environment, Conservation, Climate Change)

Context (Introduction)

India’s wetlands, central to water security, biodiversity and disaster resilience, are rapidly declining despite legal protection. World Wetlands Day 2026 underscores the urgency of integrating traditional knowledge with science-based governance to safeguard these fragile ecosystems.

Current Status of Wetlands in India

• Rapid Decline: Nearly 40% of India’s wetlands have disappeared in the last three decades, while about 50% of the remaining wetlands are degraded, reducing their ecological and economic value.
• Ecological & Economic Role: Wetlands support fisheries, agriculture, groundwater recharge, flood control and livelihoods, especially for rural and coastal communities, acting as both ecological buffers and local economic assets.
• Global Commitments: India has designated 98 Ramsar sites, reflecting international recognition, but designation alone has not ensured on-ground protection or restoration.
• Urban Wetland Stress: Urban wetlands are overburdened with sewage inflows, stormwater, solid waste and encroachments, often without legal buffers or hydrological protection.
• Climate Vulnerability: Coastal wetlands such as mangroves face a dual threat from sea-level rise and development pressure, limiting their ability to migrate or regenerate.

Key Issues and Challenges

• Weak Implementation: Although the Wetlands (Conservation and Management) Rules, 2017 exist, poor notification, demarcation and enforcement have diluted their impact.
• Encroachment & Land Conversion: Infrastructure, real estate and road projects have replaced wetlands, treating them as “spare land” rather than active ecological systems.
• Hydrological Disruption: Dams, embankments, sand mining and groundwater over-extraction alter natural water flows, degrading wetland functions, especially floodplains and riparian zones.
• Pollution Load: Untreated sewage, industrial effluents and agricultural runoff cause eutrophication, biodiversity loss and public health risks.
• Institutional Capacity Gaps: State Wetland Authorities are often underfunded and understaffed, lacking expertise in hydrology, ecology, GIS and community engagement.

Government Efforts So Far

• Regulatory Framework: The Wetlands Rules, 2017 mandate identification, notification and restriction of harmful activities in wetlands.
• NPCA Guidelines: The National Plan for Conservation of Aquatic Ecosystems (NPCA) promotes structured planning, monitoring and outcome-based wetland management.
• CRZ Regulations: The Coastal Regulation Zone framework seeks to protect coastal wetlands like mangroves and lagoons from unregulated development.
• Technology Use: Increasing use of remote sensing, GIS and satellite monitoring to track encroachment, water spread and vegetation change.
• Community-linked Models: Pilot projects by research institutions and NGOs demonstrate participatory wetland management linked to local livelihoods.

Way Forward 

• From Projects to Programmes: Shift from isolated beautification projects to long-term, basin-level wetland programmes focused on ecological functionality.
• Boundary Notification & Transparency: Ensure clear demarcation, public maps, grievance redress mechanisms and community-led ground verification of wetland boundaries.
• Treat Wastewater at Source: Urban wetlands must receive only treated effluents; wetlands cannot substitute for sewage treatment plants.
• Catchment & Connectivity Protection: Manage wetlands as part of entire watersheds by restoring feeder channels and preventing physical blockages.
• Nature-based Infrastructure: Recognise wetlands as disaster risk reduction assets, comparable to grey infrastructure, especially for floods and cyclones.
• Capacity Building: Launch a national training mission for wetland managers in hydrology, restoration ecology, GIS, environmental law and participatory governance.

Conclusion

Wetlands are not wastelands but national public goods vital for India’s water security, climate resilience and livelihoods. Aligning science, policy and community stewardship—while scaling from cosmetic interventions to ecosystem-based governance—is essential to restore wetlands as living, working systems for a sustainable future.

Mains Question

1. Examine the importance of wetlands for India’s water security, climate resilience and livelihoods. Discuss the challenges in their conservation. (250 words)

Source: The Hindu

GS Paper II (Social Justice) and GS Paper III (Inclusive Growth).

Context

Women-led Self-Help Groups (SHGs) have emerged as one of India’s most effective instruments for poverty reduction, financial inclusion and grassroots democracy. Over the last decade, the rural economy has diversified beyond subsistence agriculture, raising aspirations among women for enterprise-led growth rather than mere income support. 

• As India enters the next planning cycle (2026–31), the question is how to transition rural women from collective micro-finance participants to independent, scalable entrepreneurs.

Current Status: What DAY-NRLM Has Achieved

• Scale and Reach: Deendayal Antyodaya Yojana–National Rural Livelihoods Mission has mobilised 10 crore rural households into 91 lakh SHGs, federated into 5.35 lakh Village Organisations and 33,558 Cluster-Level Federations (CLFs).
• Financial Inclusion: SHGs have leveraged over ₹11 lakh crore bank credit with NPAs of just ~1.7%, far lower than conventional retail lending.
• Income Outcomes: The number of Lakhpati Didis has crossed 2 crore, reflecting successful livelihood diversification.
• Political and Social Capital: SHGs have strengthened women’s bargaining power, enabling States to use women collectives as delivery platforms for DBT schemes (e.g., Ladli Laxmi Yojana – MP, Jeevika – Bihar, Kudumbashree – Kerala).
• Institutional Backbone: CLFs function as sub-block institutions anchoring finance, livelihoods, training and social mobilisation.

Key Challenges Limiting the Next Leap

• Weak Autonomy of CLFs: Many CLFs function under administrative control of officials, diluting their original vision as community-owned institutions; leadership decision-making remains constrained.
• Idle and Poorly Governed Funds: Over ₹56,000 crore of capitalisation support lies with community institutions, increasing risks of underutilisation and misuse in absence of strong social and statutory audits.
• Credit Ceiling for Mature Enterprises: SHG-bank linkage loans are often too small for enterprise expansion; most women lack individual credit histories or CIBIL scores, restricting access to larger loans.
• Overdependence on Debt Financing: Current financing is dominated by loans; there is limited access to equity, venture capital or blended finance, which constrains innovation and scaling.
• Fragmented Livelihood Support: Sub-schemes operate in silos (farm, livestock, non-farm), reducing cumulative impact despite availability of planning tools like Village Prosperity and Resilience Plans (VPRPs).
• Severe Marketing Bottlenecks: SHG products face weak branding, poor packaging, lack of logistics and minimal access to organised retail or e-commerce markets.

Way Forward: Strategy for 2026–2031

• Reclaim CLFs as Community Institutions: Strengthen CLFs as autonomous, professionally managed bodies on the lines of Kudumbashree (Kerala) and Jeevika (Bihar), insulated from routine bureaucratic interference.
• Robust Financial Governance: Institutionalise mandatory social audits, statutory audits and transparent MIS for CLFs to ensure accountable use of large community funds.
• Graduation to Individual Credit: Generate individual credit scores for SHG members and position CLFs as guarantor-cum-monitoring agencies to facilitate higher-value enterprise loans.
• Innovative Financing Models: Move beyond micro-credit to equity funding, blended finance and venture support, in partnership with SIDBI, NBFCs, fintechs and neo-banks, tailored to rural women entrepreneurs.
• Business Clinic Model: Transform CLFs into one-stop enterprise hubs offering training, finance facilitation, compliance support, technology access and mentoring.
• Institutionalised Convergence: Establish a Convergence Cell at NITI Aayog to align NRLM with schemes of agriculture, dairy, food processing and MSMEs, reducing duplication and ensuring scale.
• Dedicated Marketing Architecture: Create a National Marketing Vertical for SHG products focusing on branding, quality certification, logistics and partnerships with private players; select CLFs can act as regional logistics hubs.
• Professional Human Resources: Deploy trained professionals (finance, marketing, agri-business, digital commerce) while respecting the organic growth pace of community institutions.

Conclusion

The next phase of rural women entrepreneurship must shift from credit-led inclusion to enterprise-led transformation. If CLFs are empowered as autonomous institutions, finance is diversified beyond debt, and market access is professionalised, DAY-NRLM can evolve from a poverty alleviation programme into India’s largest platform for women-led rural economic growth, social leadership and resilient livelihoods.

Mains Questions

1. Self-Help Groups have emerged as key institutions of economic and social empowerment in rural India. In this context, evaluate the role of Cluster-Level Federations (CLFs) in deepening women entrepreneurship and financial autonomy. What reforms are required to strengthen them?
   (250 words)

Source: The Hindu