Category: ECONOMICS

Context: India’s foreign exchange earnings from invisible exports—services and private remittance transfers—now exceed visible goods exports.

Decoding context:

Key Points:

Definition and Shift:

• Visible trade refers to physical goods exports.
• Invisible trade includes services (like IT, finance) and private transfers (like remittances).
• India’s invisible exports in 2024–25: $576.54 billion, surpassing goods exports of $441.79 billion.

Tangibles vs Intangibles:

• Goods exports grew from $66.29 billion (2003-04) to $441.79 billion (2024-25).
• Invisible receipts jumped sharply post-2020 due to services boom and remittance inflows.
• Major boost came during 2021–23 due to global recovery post-COVID.

Invisible Components:

• Services exports: $387.54 billion in 2024–25, largely from IT, financial, and professional services.
• Private transfers (mainly NRI remittances): $135.43 billion, driven by Indian diaspora in the Gulf and West.

Economic Significance:

• Invisibles are resilient to geopolitics, tariffs, and supply shocks, unlike goods trade.
• India maintains a goods trade deficit (e.g., -$278.1 billion in 2024–25) but balances it via a strong invisibles surplus ($263.85 billion).

Strategic Advantage:

• India’s comparative advantage lies in exporting skills, services, and human capital rather than material goods.
• This has shielded the economy from global economic disruptions and enhanced macro-economic stability.

Learning Corner:

Balance of Payments (BoP)

The Balance of Payments (BoP) is a systematic record of all economic transactions between a country and the rest of the world during a specific period, usually a year or a quarter.

Main Components of BoP:

Current Account

Deals with day-to-day transactions of goods, services, and transfers.

• a) Merchandise Trade (Visible Trade):
  Export and import of physical goods (e.g., oil, machinery).
• b) Services (Invisible Trade):
  Export and import of intangible services like IT, banking, tourism.
• c) Primary Income:
  Income from investments and wages, such as dividends, interest, and salaries earned abroad.
• d) Secondary Income (Transfers):
  One-way transfers like remittances from NRIs, gifts, and donations.

Current Account Balance = Exports – Imports (of goods, services, income & transfers)

Capital Account

Records capital transfers and acquisition/disposal of non-produced, non-financial assets (minor component).

Financial Account

Tracks investment flows across borders.

• a) Foreign Direct Investment (FDI)
• b) Foreign Portfolio Investment (FPI)
• c) Loans and banking capital
• d) Reserve assets (like foreign exchange reserves held by the RBI)

Errors and Omissions

A balancing item to account for discrepancies due to data mismatches.

BoP Status:

• If inflows > outflows → BoP Surplus
• If outflows > inflows → BoP Deficit

India often has a current account deficit (due to goods import dependency) but maintains BoP stability through strong capital inflows and invisible receipts.

Source: THE INDIAN EXPRESS

Category: INTERNATIONAL

Context: PM Narendra Modi addressed the 17th BRICS Summit in Rio de Janeiro.

Key Takeaways

• Emphasized that 20th-century institutions like the UNSC, WTO, and Multilateral Development Banks no longer reflect the realities of the 21st century.
• Urged for a multipolar and inclusive world order, with reforms in global institutions to ensure fair representation.
• Highlighted that two-thirds of the global population, largely from developing nations, remain underrepresented.
• Criticized double standards and tokenism in global commitments on development, climate finance, and technology access.
• Called for reforms that bring tangible outcomes—restructuring governance, leadership roles, and voting rights.
• Used analogies like “SIM card without network” and “21st-century software on a 20th-century typewriter” to stress outdated global systems.
• Welcomed Indonesia as a new BRICS member and praised Brazil’s leadership in expanding the bloc.
• Reiterated India’s commitment to the Global South and working with BRICS to promote inclusive global cooperation.
• The summit saw participation from new members such as Egypt, Ethiopia, Iran, UAE, and Indonesia, focusing on building a more just and sustainable world order.

Learning Corner:

17th BRICS Summit (2025)

• The 17th BRICS Summit was held in Rio de Janeiro, Brazil, from July 6–7, 2025.

Theme:

“Reforming Global Governance for a Multipolar World”

Key Highlights:

• Attended by leaders of Brazil, Russia, India, China, South Africa, and new members: Egypt, Ethiopia, Iran, UAE, and Indonesia.
• Prime Minister Narendra Modi called for:
  • Greater representation of the Global South in global institutions
  • Urgent reforms in the UNSC, WTO, and international financial institutions
  • End to double standards in global development, climate finance, and technology access
• Modi emphasized that 20th-century institutions are outdated for 21st-century challenges.
• Welcomed Indonesia’s inclusion and praised Brazil’s leadership in driving BRICS expansion.

Summit Outcomes:

• Reaffirmed commitment to inclusive multilateralism
• Supported expansion of BRICS membership
• Called for equitable and sustainable global development
• Emphasized South-South cooperation and reforms in global governance architecture

Significance:

• Marked a shift toward making BRICS a more inclusive platform for the Global South.
• Strengthened BRICS’ role in shaping a more balanced international order.

BRICS

BRICS is a multilateral grouping of five major emerging economies:
Brazil, Russia, India, China, and South Africa. It was established to promote peace, development, and cooperation among developing countries and to reform global governance structures.

Key Features:

• Formation:
  Originated as “BRIC” in 2006; South Africa joined in 2010, making it BRICS.
• Purpose:
  • Promote economic cooperation among emerging economies
  • Advocate for a multipolar world order
  • Push for reforms in global institutions like the UN, IMF, and World Bank
  • Strengthen South-South cooperation
• Core Pillars of Cooperation:

1. Political and Security
2. Economic and Financial
3. Cultural and People-to-People Exchanges

• Major Initiatives:
  1. New Development Bank (NDB): Provides funding for infrastructure and development projects
  2. Contingent Reserve Arrangement (CRA): Supports member countries during financial crises
  3. BRICS Summit: Annual meeting of leaders to discuss strategic global issues
• Recent Expansion:
  In 2024–25, BRICS expanded to include Egypt, Ethiopia, Iran, UAE, and Indonesia, increasing its global influence.

Significance:

• Represents over 40% of the world population and nearly 25% of global GDP.
• Acts as a voice for the Global South in shaping a more balanced and equitable international order.

Source: THE HINDU

Category:SCIENCE AND TECHNOLOGY

Context : Indigenous 700 MW Heavy Water Reactors Get Operational Licence

Key Highlights:

• India’s Atomic Energy Regulatory Board (AERB) has granted operational licences to two indigenously built 700 MW Pressurized Heavy Water Reactors (PHWRs) at Kakrapar Atomic Power Station (KAPS) in Gujarat.
• KAPS-3 and KAPS-4 are the first Indian-designed reactors of this scale. KAPS-3 reached full power in August 2023; KAPS-4 followed in August 2024. Licensing was granted in July 2025 after safety assessments.

Significance:

• A major step in India’s nuclear self-reliance, reinforcing the country’s capability to design, build, and operate large-scale reactors.
• NPCIL is now constructing 10 more 700 MW PHWRs in fleet mode across India, expanding clean energy capacity.
• India already operates 15 PHWRs (220 MW) and 2 PHWRs (540 MW). The 700 MW model is a technological upgrade.

Technology Overview:

• PHWRs use natural uranium as fuel and heavy water as both moderator and coolant.
• Known for high safety, cost-efficiency, and suitability for India’s resource base.

Future Plans:

• Additional 700 MW PHWRs are under construction or planned in Rajasthan, Haryana, Madhya Pradesh, and Karnataka.
• This progress supports India’s clean energy goals and enhances energy security through indigenous technology.

Learning Corner:

India’s Nuclear Energy Journey

Early Foundations:

• Visionary Leadership: India’s nuclear program was envisioned by Dr. Homi J. Bhabha, who laid out a three-stage nuclear power program to utilize India’s limited uranium and abundant thorium resources.
• Institutional Framework:
  • Atomic Energy Commission (AEC) established in 1948
  • Department of Atomic Energy (DAE) set up in 1954
  • Nuclear Power Corporation of India Limited (NPCIL) established in 1987 to construct and operate nuclear power plants

 Three-Stage Nuclear Power Program:

• Stage 1: Pressurized Heavy Water Reactors (PHWRs) using natural uranium
• Stage 2: Fast Breeder Reactors (FBRs) using plutonium from spent fuel
• Stage 3: Advanced reactors using thorium-based fuel (yet to be commercially deployed)

Key Milestones:

• 1969: First commercial nuclear power plant, Tarapur Atomic Power Station, commissioned
• 1974 & 1998: Conducted nuclear tests (Pokhran-I & II), demonstrating strategic capability
• 2008: India-US Civil Nuclear Agreement ended nuclear isolation, enabling import of uranium and international cooperation
• 2023–25: Indigenous 700 MW PHWRs like KAPS-3 and KAPS-4 reached full power

Current Status (as of 2025):

• Installed capacity: ~7,500 MW
• Reactors in operation: 22 nuclear reactors
• Reactors under construction: 10+ PHWRs in fleet mode
• Technology mix: PHWRs, Boiling Water Reactors (BWRs), Light Water Reactors (LWRs), Fast Breeder Reactors (FBRs)

Future Outlook:

• Prototype Fast Breeder Reactor (PFBR) in Kalpakkam expected soon
• Emphasis on indigenous reactor technology and thorium utilization
• Nuclear energy seen as critical to achieving net-zero and energy security

Different Types of Nuclear Reactors

Nuclear reactors are classified based on the type of fuel, moderator, and coolant used. Below are the key types relevant globally and in India:

Pressurized Heavy Water Reactor (PHWR)

• Fuel: Natural uranium
• Moderator & Coolant: Heavy water (D₂O)
• Example: Kakrapar (KAPS), Rajasthan (RAPS)
• Features:
  • High neutron economy
  • Suitable for India’s limited uranium resources
  • Indigenous design (700 MW PHWRs are India’s latest advancement)

Boiling Water Reactor (BWR)

• Fuel: Enriched uranium
• Moderator & Coolant: Light water
• Example: Tarapur Atomic Power Station
• Features:
  • Steam is generated directly in the reactor core
  • Simple design but higher risk of radioactive steam leakage

Pressurized Water Reactor (PWR)

• Fuel: Enriched uranium
• Moderator & Coolant: Light water
• Example: Kudankulam Nuclear Power Plant (Russian design)
• Features:
  • Most widely used globally
  • Coolant is kept under high pressure to prevent boiling

Fast Breeder Reactor (FBR)

• Fuel: Plutonium mixed oxide (MOX)
• Moderator: None
• Coolant: Liquid sodium
• Example: Prototype Fast Breeder Reactor (PFBR), Kalpakkam
• Features:
  • Breeds more fuel than it consumes
  • Essential for India’s second stage of nuclear program

Advanced Heavy Water Reactor (AHWR) (Under development)

• Fuel: Thorium + Uranium-233
• Moderator & Coolant: Heavy water/light water
• Purpose:
  • Part of India’s third stage
  • Utilizes abundant thorium reserves
  • High safety and passive cooling features

Light Water Reactor (LWR)

• Fuel: Enriched uranium
• Moderator & Coolant: Light water
• Note:
  • Includes both BWR and PWR as subtypes
  • Used widely in international civilian nuclear programs

Atomic Energy Regulatory Board (AERB)

The Atomic Energy Regulatory Board (AERB) is India’s independent nuclear regulatory authority, responsible for ensuring the safe use of ionising radiation and nuclear energy. It functions under the Atomic Energy Act, 1962.

Establishment:

• Established: November 15, 1983
• By: Government of India
• Under: Atomic Energy Act, 1962

Mandate & Functions:

1. Regulatory Oversight:
   • Approves siting, design, construction, commissioning, operation, and decommissioning of nuclear facilities.
2. Radiation Safety:
   • Regulates use of radiation in medicine, industry, agriculture, and research.
3. Standards & Guidelines:
   • Frames safety codes, manuals, and procedures for nuclear and radiation facilities in line with IAEA (International Atomic Energy Agency) standards.
4. Licensing:
   • Issues licences to nuclear power plants and radiation installations after thorough safety assessment.
5. Inspections & Enforcement:
   • Conducts periodic inspections and enforces safety compliance, including shutdown orders if necessary.
6. Public and Environmental Protection:
   • Ensures that radiation exposure to workers and the public remains within prescribed limits.

Structure:

• AERB reports to the Atomic Energy Commission (AEC), which is under the Department of Atomic Energy (DAE).
• It operates independently of nuclear plant operators like NPCIL to maintain objectivity.

Source :  THE HINDU

Category: ENVIRONMENT

Context: The Great Nicobar Island infrastructure project has sparked criticism for inadequately addressing seismic risks in its Environmental Impact Assessment (EIA), despite the region’s vulnerability to major earthquakes.

Key Criticisms:

• Downplaying Seismic Risk:
  The EIA relies on a limited 2019 study focused mainly on tsunami threats and overlooks broader earthquake hazards, despite the region having a high probability of major quakes.
• Neglect of Independent Research:
  Independent studies indicate the region is among India’s most seismically active, with potential for ground shaking, soil liquefaction, and land subsidence, as witnessed in the 2004 tsunami.
• Lack of Transparency:
  Critics claim the clearance process was non-transparent and prioritized technical and financial considerations over environmental and safety concerns.

Official Stand:

• The government assures that all construction will follow Indian earthquake-resistant codes and a disaster management plan is in place.
• It downplays the risk of another 2004-scale earthquake in the near future.

Expert Recommendations:

• Independent Review:
  Experts urge a transparent reassessment by a high-powered committee focused on seismic vulnerability.
• Regulatory Oversight:
  The National Green Tribunal had imposed a temporary stay, calling for re-evaluation of environmental and coastal regulation clearances.

Learning Corner:

Environmental Impact Assessment (EIA)

Environmental Impact Assessment (EIA) is a process used to evaluate the potential environmental consequences of a proposed development project before it is approved or implemented. It aims to ensure that decision-makers consider environmental impacts alongside economic and technical factors.

Objectives of EIA:

• Predict environmental impacts at an early stage of project planning
• Propose mitigation measures to reduce adverse impacts
• Promote sustainable development
• Facilitate informed and transparent decision-making

Key Components of an EIA:

1. Screening – Determines if a project requires EIA
2. Scoping – Identifies the key issues and impacts to be studied
3. Impact Assessment – Evaluates potential environmental effects
4. Public Consultation – Involves stakeholders in decision-making
5. Environmental Management Plan (EMP) – Suggests mitigation strategies
6. Monitoring and Compliance – Ensures project follows environmental safeguards

Legal Framework in India:

• Governed by the Environmental Protection Act, 1986
• Operationalized through the EIA Notification, 2006 (amended from time to time)
• Regulated by the Ministry of Environment, Forest and Climate Change (MoEFCC) and State Environmental Impact Assessment Authorities (SEIAAs)

Great Nicobar Island Project

The Great Nicobar Island Project is a mega infrastructure development initiative aimed at strategically transforming the southernmost island of the Andaman & Nicobar archipelago. It has significant economic, strategic, and environmental implications.

Key Features:

• Location: Great Nicobar Island, located in the Bay of Bengal near the Malacca Strait
• Project Components:
  • International Container Transshipment Terminal (ICTT)
  • Greenfield Airport
  • Power Plant
  • Township for workers and residents
• Implementing Agency: Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO), with support from the central government

Strategic Importance:

• Enhances India’s maritime presence in the Indo-Pacific region
• Aims to counterbalance Chinese influence in the Indian Ocean
• Facilitates secure maritime trade through proximity to major shipping routes

Environmental Concerns:

• The island is an ecologically fragile zone, rich in biodiversity and tribal heritage
• Criticisms of EIA: Alleged underestimation of seismic risks, lack of transparency, and insufficient consultation
• Potential impact on coral reefs, mangroves, tribal communities, and wildlife habitats

Current Status:

• Project has received environmental and coastal regulation clearances, though challenged by environmentalists and civil society groups
• Subject to review by the National Green Tribunal (NGT) for compliance and risk reassessment

Source: THE HINDU

Category:SCIENCE AND TECHNOLOGY

Context: Kerala has confirmed fresh cases of Nipah virus, prompting heightened vigilance in Malappuram and Palakkad, with an alert issued in Kozhikode due to risk of further spread

Containment and Response Measures:

• Surveillance & Contact Tracing:
  Over 400 individuals are under observation across the three districts. Dedicated teams are conducting tracing, symptom monitoring, and quarantines.
• Medical Infrastructure:
  Isolation wards and ICU facilities have been activated. Malappuram has 12 patients under treatment, including 5 in ICU, while Palakkad has 4 in isolation.
• Containment Zones & Awareness:
  Affected wards have been declared containment zones. Mask mandates and movement restrictions are in place, along with door-to-door awareness campaigns.
• Emergency Coordination:
  District authorities, in collaboration with police and health departments, are managing containment, helplines, and tracking unexplained deaths.
• Ministerial Oversight:
  Health Minister Veena George is overseeing high-level review meetings to ensure swift and coordinated action.

Learning Corner:

Nipah Virus

Nipah virus (NiV) is a zoonotic virus (transmitted from animals to humans) that can also spread through contaminated food or direct human-to-human contact. It is considered a highly lethal pathogen with epidemic potential.

Key Features:

• Causative Agent: Nipah virus, belonging to the Paramyxoviridae family
• Natural Host: Fruit bats of the Pteropus genus
• Transmission:
  • From bats to humans via contaminated fruit or palm sap
  • From animals (especially pigs) to humans
  • Human-to-human through close contact or bodily fluids

Symptoms:

• Fever, headache, muscle pain
• Vomiting and sore throat
• Dizziness, drowsiness
• In severe cases: encephalitis (brain inflammation), coma, and death

Fatality Rate:

• Ranges from 40% to 75%, depending on outbreak response and healthcare access

Geographical Context:

• First identified in Malaysia (1998–99)
• In India, outbreaks have occurred in West Bengal (2001, 2007) and Kerala (2018, 2019, 2021, 2023, and 2025)

Treatment and Prevention:

• No specific antiviral treatment or licensed vaccine currently available
• Management is supportive, focusing on symptom relief and critical care
• Prevention includes:
  • Avoiding exposure to bats and pigs
  • Not consuming fruits fallen on the ground or palm sap
  • Strict infection control measures in hospitals

Source: THE HINDU

Introduction (Context)

The Union Cabinet approved an Employment-Linked Incentive (ELI) scheme with an outlay of ₹99,446 crore. The scheme, a promise made in the 2024-25 budget, is aimed at creating employment, particularly in the manufacturing sector.

Status of Employment in India

According to the Periodic Labour Force Survey

• Labour Force Participation Rate (LFPR):

• Urban male LFPR increased from 74.3% (2023) to 75.6% (2024).
• Urban female LFPR rose slightly from 25.5% to 25.8%.
• Overall urban LFPR increased from 50.3% to 51.0%.
• All-India LFPR remained steady at 56.2%, despite category-wise variations.

• Worker Population Ratio (WPR):

• Slight improvements were seen across all categories, particularly in the overall WPR (47.0% to 47.6%) in Urban areas. 

• At all India level overall WPR remained relatively unchanged (53.4% to 53.5%).

• Unemployment Trends (PLFS 2023–24)

• Rural unemployment slightly declined from 4.3% to 4.2%.
• Urban male unemployment increased from 6.0% to 6.1%
• Urban female unemployment dropped from 8.9% to 8.2%.
• Overall urban unemployment remained stable at 6.7%.
• All-India unemployment rate fell slightly from 5.0% to 4.9%.
• Decline in unpaid female helpers in household enterprises (from 19.9% to 18.1%) contributed to lower WPR and LFPR in rural areas.

Salient Provisions of the Scheme

• • Who will implement? The Employees Provident Fund Organisation (EPFO) will implement the scheme. 
  • It will run from August 1, 2025 to July 31, 2027.

• Key provisions:

• Newly recruited employees, with salaries up to ₹1 lakh, will get a one-month EPF wage up to ₹15,000 in two installments. 
• The EPFO will pay the first instalment after six months of service and the second instalment after 12 months of service — both as direct bank transfer. 
• A portion of the incentive will be kept in “a savings instrument of deposit account for a fixed period and can be withdrawn by the employee at a later date”. 
• The establishments, registered with EPFO, will get up to ₹3,000 per month, for two years, “for each additional employee with sustained employment for at least six months”. 
• For the manufacturing sector, incentives will be extended to third and fourth years as well.
• All payments to the First Time Employees under Part A of the Scheme will be made through DBT (Direct Benefit Transfer) mode using Aadhar Bridge Payment System (ABPS).  Payments to the Employers under Part B will be made directly into their PAN-linked Accounts.

Proposed benefits

The ELI scheme aims to address India’s employment crisis by incentivising the private sector for job creation, retention and skill development. The objectives of the scheme are:

• Enhance private sector employment opportunities: The initiative encourages private sector companies to recruit additional staff, especially new entrants to the workforce, by providing financial rewards for job creation.  
• Promote youth employment: The scheme primarily aims to decrease youth unemployment by encouraging businesses to recruit young individuals, especially those joining the workforce for the first time.  
• Promote job retention: The ELI programme features measures to encourage job retention by offering incentives to employers who maintain elevated workforce levels over time, especially those who recruit beyond a specific threshold.  
• Encourage skill advancement: The initiative aligns with governmental objectives to improve skills, particularly among young people, by motivating employers to invest in training and upskilling their workforce.  
• Enhance formal employment: The initiative aims to formalise employment, especially in industries that have historically depended on informal labour. This involves offering incentives to employers who transition workers into the formal economy, providing advantages such as Provident Fund (PF) coverage.  
• Improve employment in the manufacturing sector: The programme features targeted measures for the manufacturing industry, seeking to boost job opportunities in this vital sector by promoting the recruitment of individuals new to the workforce.  
• Decrease economic disparity: By prioritising job creation and skill enhancement for young individuals, especially those from underprivileged backgrounds, the initiative seeks to diminish economic disparity and improve social mobility.  
• Assist employers in recruitment: By providing financial assistance, such as reimbursing employers for their PF contributions for new hires, the programme aims to lower employers’ expenses and motivate them to increase their staffing levels.  

The ELI scheme, incentivises creation of more than 3.5 crore jobs over a period of two years. The Centre expects 1.92 crore newly employed people to get the benefit of the scheme, which comes into operation from August 1, 2025 and ends on July 31, 2027. \

View of Trade Unions

• Barring the RSS-backed Bharatiya Mazdoor Sangh (BMS), all 10 central trade unions have questioned the scheme. 
• Other unions fear that workers’ money will be used to incentivise employers. 
• Citing the fate of the Production-Linked Incentive of 2020, wherein certain sectors were given sops by the Centre to create jobs, but the money had gone into the pockets of big companies. 
• They argued that the EPFO had to conduct a probe and ban certain companies after finding the scheme was misused for employers’ benefits.

With ELI Scheme, the government intends to catalyse job creation in all sectors, particularly in manufacturing sector, besides incentivizing youth joining the workforce for the first time.  An important outcome of the Scheme will also be formalization of the country’s workforce by extending social security coverage for crores of young men and women.

Concerns raised by experts

• As EPFO is only a custodian of savings of employees, how it can act as an agency to implement the scheme. 
• As the EPFO has no government funds in its books, there are doubts over the reimbursement of the money which could go to the employer or a newly recruited employee. As EPFO is not an agency with the responsibility of creating jobs, there are demands to create a separate agency to implement the scheme.

Value Addition: EPFO

• EPFO is a government body under the Ministry of Labour and Employment.
• It manages the Employees’ Provident Fund (EPF), a retirement savings scheme for salaried employees in India.
• Both employee and employer contribute a portion of the salary to the EPF account every month.
• EPFO ensures safe investment of this money and provides returns along with pension and insurance benefits.
• It mainly acts as a custodian of workers’ savings, not as a job-creating or welfare-distributing agency.

Conclusion

In conclusion, the introduction of the Employment-Linked Incentive (ELI) schemes highlights the government’s strategic approach to addressing unemployment while driving economic growth. By offering targeted incentives to employees and employers, these schemes aim to create a more inclusive and dynamic job market. The ELI initiatives not only support workforce expansion and formalisation but also provide significant financial relief to employers, particularly SMEs, making it easy for them to grow and hire.

Mains Practice Question

Q Discuss the key features and objectives of the Employment-Linked Incentive (ELI) Scheme. What are the major concerns raised regarding its implementation? (250 words, 15 marks)

Introduction (Context)

Prime Minister Narendra Modi’s call for “Jai Anusandhan” (Hail Innovation), backed by a ₹1 lakh crore Research, Development, and Innovation (RDI) fund, aims to transform Indian agriculture. However, this vision needs the commercial adoption of genetically modified (GM) crops, which have been stuck in regulatory mechanism.

What are Genetically Modified Crops?

• Genetically modified (GM) crops are plants used in agriculture, the DNA of which has been modified using genetic engineering techniques. 
• The aim is to introduce a new trait to the plant which does not occur naturally in the species like resistance to certain pests, diseases, environmental conditions, herbicides etc. Genetic modification is also done to increase nutritional value, production of pharmaceuticals, biofuels etc. 
• GM crops are also referred as genetically engineered (GE) plants, transgenic crops, living modified organisms (LMOs) or biotech crops.

Benefits of GM crops:

• GM crops can lead to higher yields, potentially addressing food security concerns. 
• Some GM crops, like Bt cotton, reduce the need for synthetic pesticides, benefiting the environment.  
• Some GM crops are modified to have a longer shelf life, reducing food waste. 

Status of GM crops

• As of 2023, over 200 million hectares of GM soyabean, maize, canola, and more are in cultivation across 76 countries.

• In India, only Bt cotton is officially approved and widely adopted since 2002. More than 90 per cent of India’s cotton area is under Bt cotton, and its seed is fed to cattle. So, in a way, a GM crop is already in our food system. 
• Bt Brinjal: Approved by GEAC in 2009, but commercial release is under a moratorium.
• GM Mustard (DMH-11): Given conditional environmental clearance in 2022, but yet to be commercialised.

Impact on cotton

• Cotton production surged from 13.6 million bales in 2002–03 to 39.8 million bales in 2013–14, a phenomenal 193 per cent growth. 
• Productivity shot up by 87 per cent (from 302 kg/ha to 566 kg/ha) 
• Cultivated area expanded by 56 per cent, with Bt cotton dominating. 
• Farmers’ incomes soared, and Gujarat even witnessed an agrarian boom — the state averaged over 8 per cent annual growth in agri GDP. 
• India had become the world’s second-largest cotton producer after China and the second-largest exporter after the US, hitting $4.1 billion of net exports during 2011-12.
• However, after 2015, Cotton yield declined from 566 kg/ha (2013–14) to 436 kg/ha (2023–24). This is below the global average (~770 kg/ha) and far behind China (1,945 kg/ha) and Brazil (1,839 kg/ha).
• Average annual cotton production dropped by 2% since 2015 driven largely by pest outbreaks like pink bollworm and whiteflies, tangled regulations, and a prohibition on next-generation cotton seeds such as herbicide-tolerant (HT) Bt cotton.

Reasons: 

• HT-Bt cotton, engineered to survive glyphosate spraying, has not been cleared. Despite this, the seeds have leaked into farms across Gujarat, Maharashtra, Telangana, Andhra Pradesh, and Punjab. Industry bodies and surveys estimate that illegal HT-Bt covers 15–25 per cent of cotton acreage. 
• Since 2015, government intervention in private seed contracts has emerged as a major challenge to innovation in India’s cotton sector. Cotton Seed Price Control Order (2015) has slashed royalty fees, discouraging innovation, capped trait fees at 10% of MSP, with mandatory tech transfer in 30 days which resulted in reduced participation by global biotech firms

Consequently, cotton exports began to decline after 2011-12, and by 2024-25, India turned into a net importer of raw cotton, with net imports valued at $0.4 billion.

Status of other crops

• Approval for Bt brinjal and GM mustard (DMH 11), remains on hold. These crops cleared in principle by the Genetic Engineering Appraisal Committee (GEAC) haven’t received full commercial green light. 
• Bt brinjal has been under moratorium since 2009, while GM mustard got conditional environmental release in 2022—but commercialisation has stalled pending further regulatory checks and potentially a Supreme Court ruling. 
• By muzzling trait monetisation and hindering technology transfer, India’s rigid regulatory posture has stalled crop innovation, forced reliance on imports, and squandered a chance to lead the gene revolution.

Way forward

• Create a transparent and science-based regulatory framework
• Encourage public-private R&D partnerships
• Support pilot programmes for GM crops cleared by GEAC
• Review SPCO 2015 to balance affordability with innovation
• Spread awareness to counter misinformation about GM foods
• Integrate GM tech with climate-smart agriculture

Conclusion

From plate to plough, India’s future depends on embracing gene technology. GM crops, if deployed responsibly, can be the key to enhancing productivity, ensuring food security, reducing import dependency, and empowering farmers. 

Mains Practice Question

Q “India’s cautious approach to genetically modified (GM) crops reflects a deep conflict between scientific innovation and regulatory hesitation.” Critically examine. (250 words, 15 marks)

Today’s – Daily Practice MCQs’ will be updated in our “Daily Current Affairs Quiz” section on our website

Please click on the below link 

Daily Current Affairs Quiz for UPSC IAS Prelims | IASbaba