PIB Summary - 18th August 2025 | PIB (Press Information Bureau) Summary - UPSC PDF Download

DEEP OCEAN MISSION

Context and Background

• Oceans and Human History: Oceans cover about 71% of the Earth’s surface, yet more than 80% of them remain unexplored. They play a crucial role in influencing climate, biodiversity, energy, and the economy.
• Mineral Wealth: The deep sea holds valuable minerals like polymetallic nodules containing cobalt, nickel, manganese, and copper.
• Biodiversity: The deep ocean is home to unique microbes, plants, and animals that could have important applications in biotechnology and medicine.
• Energy and Freshwater: Technologies like Ocean Thermal Energy Conversion (OTEC), gas hydrates, and desalination are potential sources of energy and freshwater from the ocean.
• Blue Economy: This concept, highlighted by the World Bank in 2017, focuses on the sustainable use of ocean resources for economic growth, improved livelihoods, and the health of ocean ecosystems. India has included this as a core growth dimension in its Vision 2030.
• Global Initiatives: The UN Decade of Ocean Science (2021–2030) encourages nations to explore and utilize ocean resources sustainably.
• India’s Geographical Advantage: With a coastline of 11,098 km, 1,382 islands, and an Exclusive Economic Zone (EEZ) of approximately 2.37 million sq. km, India is well-positioned for deep-sea exploration.

Deep Ocean Mission

• Launch and Budget: The Deep Ocean Mission was launched in September 2021 by the Ministry of Earth Sciences (MoES) with a budget of ₹4,077 crore for five years.
• Objectives: The mission aims to develop technologies for sustainable deep-ocean exploration and resource harnessing to support the Blue Economy.
• National Ambition: India aims to join an elite group of countries (USA, Russia, France, Japan, China) with the capability to deploy manned submersibles in deep-sea exploration.
• Key Event: In August 2025, Indian aquanauts are expected to conduct the first deep dive at 5,000 meters, collecting cobalt-rich polymetallic nodules.

Mission Components

1. Deep Sea Mining & Manned Submersible

• Development of MATSYA 6000, a manned submersible capable of reaching depths of 6,000 meters.
• Extraction system for polymetallic nodules in the Central Indian Ocean Basin, preparing India for future commercial mining.

2. Ocean Climate Change Advisory Services

• Development of climate models ranging from seasonal to decadal scales.
• Providing inputs for fisheries, coastal tourism, and disaster resilience.

3. Biodiversity & Bioprospecting

• Exploring deep-sea microbes, flora, and fauna for potential applications in pharmaceuticals, enzymes, and nutraceuticals.
• Supporting marine fisheries and allied services.

4. Deep Ocean Survey & Exploration

• Identifying potential sites for hydrothermal sulphide deposits.
• Mapping polymetallic nodule sites in the ocean.

5. Energy & Freshwater from Ocean

• Developing proof-of-concept offshore OTEC-powered desalination plants.

6. Advanced Marine Station for Ocean Biology

• Establishing a research and development incubator focusing on ocean biology and engineering.
• Promoting industrial spin-offs from research findings.

Project Samudrayaan

• MATSYA 6000:
• Design: A spherical vessel made of titanium alloy, capable of withstanding extreme pressures and temperatures.
  • Diameter: 2260 mm
  • Wall Thickness: 80 mm
  • Depth Capacity: 6000 m
  • Temperature Range: -3°C
• Safety Systems: Equipped with advanced safety features such as:
  • Li-Po Batteries for power
  • Acoustic Telephones for communication
  • Emergency Drop-Weight for rapid ascent
  • Bio-Vests for individual safety
  • Life-Support Redundancy systems
• Indigenous Manufacturing: The titanium alloy welding technology has been perfected by ISRO’s Liquid Propulsion Systems Centre (LPSC) after 700 trials. The vessel has been tested using advanced Non-Destructive Evaluation (NDE) methods like Time of Flight Diffraction (TOFD) and Phased Array Ultrasonic Testing (PAUT).
• Collaboration: The project is a collaboration between the National Institute of Ocean Technology (NIOT), under the Ministry of Earth Sciences (MoES), and the Vikram Sarabhai Space Centre (VSSC) of ISRO.
• Trials: Planned dry and wet trials at L&T Shipyard in Chennai in 2025.
• International Collaboration: An Indo-French expedition is scheduled for August 2025, in collaboration with IFREMER’s Nautile, to conduct a deep-sea dive at 5000 m and train Indian aquanauts.

Technology and Validation

Testing Phases:

• 8 Dives:These include 5 unmanned and 3 to 5 manned dives aimed at validating various systems such as:
  • Life-support systems
  • Navigation systems
  • Manipulator arms
  • Communication systems
• 2022 Mapping: The OMe 6000 Autonomous Underwater Vehicle (AUV) successfully mapped a polymetallic nodule site at a depth of 5271 m, covering an area of 14 sq. km.

Future Roadmap:

• 2026: Shallow water demonstration at a depth of 500 m.
• 2027: Deep-sea validation at a depth of 6000 m.
• 2027-28: Full-fledged scientific exploration using MATSYA 6000.

Strategic Significance

• Economic Potential: The Blue Economy sector in India is projected to exceed $100 billion, focusing on sustainable ocean resource management.
• Strategic Importance: Deep-sea mining for rare earths and cobalt is critical for industries such as electric vehicle (EV) batteries, defense, and artificial intelligence (AI) electronics.
• Geopolitical Context: The mission aims to counter China’s dominance in deep-sea mining, as China holds four contracts with the International Seabed Authority (ISA) for seabed exploration and mining.
• Technology Sovereignty: Developing indigenous manned submersibles places India in an exclusive group of countries capable of advanced deep-sea exploration.
• Employment and Innovation: The mission is expected to spur job creation and innovation in marine engineering, biotechnology, offshore energy, and startups focused on marine and ocean technologies.

Challenges and Concerns

• Ecological Concerns: Deep-sea ecosystems are fragile and have long recovery times, often spanning centuries. Mining activities can disrupt biodiversity and impact carbon storage capabilities of these ecosystems.
• Legal Framework: Deep-sea mining is governed by the United Nations Convention on the Law of the Sea (UNCLOS) and regulations set by the International Seabed Authority (ISA). India holds a 75,000 sq. km exploration block in the Central Indian Ocean Basin (CIOB) but must comply with the global seabed mining code, which is still being finalized.
• Financial Viability: The high costs associated with deep-sea exploration and mining, coupled with uncertain commercial returns, pose significant financial challenges.
• Technological Challenges: Ensuring the safety of crew members during long-duration missions, maintaining reliable communication, and ensuring power endurance are critical technological hurdles that need to be addressed.
• Social Impact: Expansion of coastal projects may lead to the displacement of local fisherfolk, raising social and ethical concerns.

India’s Position Compared to the World

• USA, Russia, and France: These countries have advanced manned submersibles like Alvin and Nautile, capable of deep-sea exploration.
• China: China’s Fendouzhe achieved a record depth of 10,909 m in the Mariana Trench in 2020 and leads in polymetallic nodule exploration, holding multiple contracts with the ISA.
• Japan: The Japan Agency for Marine-Earth Science and Technology (JAMSTEC) operates Shinkai 6500, a manned submersible capable of deep-sea exploration.
• India: India is rapidly advancing in this field, with the success of MATSYA 6000 expected to elevate its status in deep-sea exploration, similar to the impact of Chandrayaan-3 in space exploration.

Conclusion

• Strategic and Scientific Advancement: The Deep Ocean Mission positions India among a select group of nations with expertise in deep-sea technologies, enhancing its sovereignty over critical minerals and advancing marine research and ocean engineering capabilities. 
• Economic and Blue Economy Growth: The mission has the potential to unlock billions of dollars in resources, drive innovation, and strengthen key pillars of India’s Blue Economy, including fisheries, biotechnology, offshore energy, and marine industries. 
• Sustainability and Ecological Balance: While the mission promises significant economic benefits, it is crucial to balance exploration activities with ecological safeguards. Adhering to global norms will ensure that oceans remain resilient and continue to be a valuable resource for future generations. 

S&P Upgrades India’s Sovereign Rating to ‘BBB’

• What is a sovereign credit rating?
• An independent evaluation of a country’s capability and willingness to fulfill its debt obligations.
• These ratings are issued by rating agencies such as S&P, Moody’s, and Fitch.
• Sovereign credit ratings influence borrowing costs, foreign direct investment (FDI) flows, and the perception of global investors.
• Who is S&P Global?
• Standard & Poor’s Global Ratings is one of the “Big Three” rating agencies, alongside Moody’s and Fitch.
• S&P Global is recognized for its ratings in sovereign, corporate, and financial markets.
• Rating Scale (simplified)
• Investment grade: AAA, AA, A, BBB.
• Speculative (junk): BB, B, CCC, etc.
• India’s shift: BBB- (lowest investment grade, 2007) to BBB (2025).
• Short-term rating: A-3 to A-2, indicating a stronger short-term repayment capacity.
• Significance of the 2025 Upgrade
• This upgrade marks the first improvement in India’s credit rating in 18 years.
• It reflects the country’s stronger economic fundamentals in the post-pandemic period.
• The upgrade aligns with India’s ambition to become one of the top three global economies by 2030.

Why the Upgrade Happened

• Strong GDP Growth: India experienced a robust post-pandemic economic rebound, with an average GDP growth rate of 8.8% from FY22 to FY24. The projected growth rate for the next three years is 6.8% annually, making it one of the fastest-growing economies in the Asia-Pacific region.
• Fiscal Discipline: The central government has demonstrated fiscal discipline, with a targeted deficit reduction from 4.8% of GDP in FY25 to 4.4% in FY26. The general government deficit is expected to decrease from 7.3% in FY26 to 6.6% by FY29. This fiscal consolidation is supported by an infrastructure push of approximately 5.5% of GDP, funded without widening the Current Account Deficit (CAD).
• Monetary Stability: India has maintained monetary stability, with inflation kept within the Reserve Bank of India’s (RBI) target range of 2% to 6% since 2015. Although the average Consumer Price Index (CPI) inflation was 5.5% over the past three years, it dropped to 1.6% in July 2025. The repo rate was also eased to 5.5% between February and July 2025, further supporting monetary stability.
• External Stability: India’s external stability is characterized by a modest net external asset position. The CAD remains small, and the depreciation of the rupee has improved export competitiveness, contributing to external stability.

Fiscal & Debt Dynamics

• Debt Profile: During the pandemic, India experienced a significant increase in debt, ranging from 9% to 13% of GDP. However, this has now been reduced to a net debt level of 7.8% of GDP.
• Capex Strategy: The Union government has planned a capital expenditure (capex) of ₹11.2 trillion, which is 3.1% of GDP for FY26. Public investment, including contributions from both the centre and state governments, is expected to be around 5.5% of GDP. The focus of this investment is on infrastructure, logistics, and the energy transition.
• Quality of Spending: There has been a shift in the quality of spending from subsidies to capital formation. This shift has reinforced the credibility of the government as deficits decrease while infrastructure investment increases.

Economic & Financial Implications

• Lower Borrowing Costs: The upgrade in sovereign credit rating is expected to lead to lower borrowing costs for the government, making sovereign bonds cheaper. This, in turn, will have a spillover effect, lowering borrowing costs for corporations and banks as well.
• Investor Confidence: The improved rating is likely to boost investor confidence, leading to higher foreign portfolio investment (FPI) and foreign institutional investment (FII) inflows into both debt and equity markets. The lower country risk premium will make India more attractive compared to its emerging market peers.
• Multiplier Effect: The influx of capital is expected to contribute to rupee stability and strengthen the balance of payments. This will lead to an increase in foreign exchange reserves and provide more funds for infrastructure development and job creation.

Global Context & Comparisons

• India’s Credit Rating: As of now, India’s credit rating of BBB is at the lowest level of the mid-tier investment grade. This places India in a position where it has broken free from stagnation, but there is still a need for further reforms to improve its rating.
• Comparison with Peers: India’s credit rating can be compared with its peers in the region:
  • Higher-rated countries: China (A+), South Korea (AA), and Singapore (AAA).
  • Countries with similar ratings: Indonesia (BBB) and the Philippines (BBB+).

Risks & Challenges

• Debt Burden: India’s public debt is estimated to be around 83% to 85% of GDP, which is considered high compared to its peers. This elevated debt level poses a risk to fiscal sustainability and creditworthiness.
• Banking Sector and Non-Performing Assets (NPAs): Although the situation has improved, the health of public sector banks (PSUs) remains uneven. The presence of non-performing assets (NPAs) continues to be a challenge for the banking sector, affecting its stability and ability to lend.
• Employment Generation: There is a critical need for economic growth to translate into job creation. Rating agencies are cautious and may downgrade the rating if growth does not lead to increased employment opportunities. The concern is that the economy could experience growth without a corresponding increase in jobs, which would be detrimental.
• Global Headwinds: India faces several global risks, including potential oil price shocks, changes in the monetary policy of the US Federal Reserve, and geopolitical tensions in regions such as the Red Sea, Russia-Ukraine conflict, and China-Taiwan relations. These factors could impact India’s economic stability and growth prospects.
• Inflation Risks: While inflation is currently low, there is a risk that commodity price cycles could reverse, leading to higher inflation. This could impact purchasing power and economic stability.
• Structural Bottlenecks: India continues to face structural challenges, including issues related to land acquisition, labor regulations, judicial delays, and the execution of infrastructure projects. These bottlenecks can hinder economic growth and development.

Conclusion

• Validation of Reforms: The upgrade in India’s credit rating reflects the country’s resilient economic growth, prudent fiscal consolidation, and stability in inflation rates. It signifies global recognition of India’s policy credibility and the effectiveness of its reforms.
• Catalyst for Investment: The improved rating acts as a catalyst for investment by lowering borrowing costs and boosting investor confidence. This creates an environment conducive to capital inflows, which are essential for infrastructure development and job creation.
• Way Forward: To sustain the positive momentum and further improve its credit rating, India needs to focus on deeper structural reforms. Prudent management of public debt and ensuring that economic growth translates into inclusive development are crucial for maintaining investor confidence and supporting long-term growth.