Yojana Summary: April 2025 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Improving Skills for India's Exports

Trade Advancement

Introduction

Exports play a crucial role in driving economic growth, generating employment, and boosting foreign exchange reserves. For India, an export-oriented strategy is essential to reach the ambitious target of becoming a USD 20 trillion economy.

• India benefits from a young population and expanding manufacturing capabilities.
• The growing digital infrastructure positions India to emerge as a global export leader, particularly in high-tech sectors such as semiconductors, electric mobility, and digital services.

Current Trends in India’s Exports

1. Sectoral Growth

• Non-petroleum exports saw a 7% increase in FY23, driven by sectors like pharmaceuticals, chemicals, electronics, and engineering goods.
• Electronics exports surged from $11 billion in FY21 to $26 billion in FY24, significantly supported by the Production Linked Incentive (PLI) scheme.
• Textiles experienced a recovery with 7.6% growth, while sectors like renewable energy and electric vehicles (EVs) are emerging as new engines of export growth.

2. Global Context

• Despite a 2% global trade slowdown in 2023, India’s diverse export base and supportive government policies have contributed to its resilience.
• Trade agreements such as the India-UAE Comprehensive Economic Partnership Agreement (CEPA) and the India-Australia Economic Cooperation and Trade Agreement (ECTA) are facilitating access to new markets.

Importance of Export-Led Growth

1. Job Creation and Equity

• Industries focused on exports have the potential to create around 200 million jobs, helping to resolve persistent underemployment issues.
• Industrial hubs in states like Tamil Nadu, Karnataka, and Uttar Pradesh promote balanced regional development.

2. Technological Advancement

• Participation in Global Value Chains (GVCs) enhances competitiveness, fosters innovation, and provides access to cutting-edge technology.

3. Strategic and Economic Diplomacy

• Boosting exports enhances India’s standing in international forums and strengthens partnerships through trade agreements.

Challenges to Export Growth

1. Infrastructure and Logistics Challenges

• Logistics costs in India are high, ranging from 14% to 16% of GDP, compared to 8% to 10% in developed countries.
• Key issues include port congestion, insufficient last-mile connectivity, and delays in customs processing.

2. Structural and Sectoral Limitations

• There is a heavy dependence on traditional sectors like IT, petroleum products, and gems/jewellery for exports.
• Sectors such as textiles and agriculture have low value addition, limiting their export potential.

3. Regulatory and Market Access Challenges

• Non-tariff barriers (NTBs) imposed by the EU and US hinder exports. For instance, the US Food and Drug Administration (USFDA) rejected 3,925 Indian food shipments over five years.
• There is a lack of globally accredited testing and certification facilities in India.

4. Financial and Geopolitical Challenges

• Micro, Small, and Medium Enterprises (MSMEs) face high credit costs and often lack awareness of export promotion schemes.
• Global challenges such as protectionist measures, carbon border taxes, and geopolitical tensions disrupt supply chains and export activities.

Government Initiatives

1. Policy and Financial Support

• Implementation of Production Linked Incentive (PLI) schemes across 14 sectors, including electronics, electric vehicles, and pharmaceuticals, to boost manufacturing and exports.
• Launch of the Export Promotion Mission with an allocation of ₹2,250 crore to address non-tariff barriers (NTBs) and enhance export financing facilities.
• The PM Gati Shakti initiative aims to create a unified multimodal logistics infrastructure, improving supply chain efficiency and reducing logistics costs.

2. Digital Infrastructure Development

• Introduction of BharatTradeNet, a digital platform that streamlines trade documentation and financing processes, drawing inspiration from Singapore’s TradeNet system.
• The Unified Logistics Interface Platform (ULIP) is being developed to enhance supply chain visibility and coordination, facilitating smoother logistics operations.

3. Skill Development Initiatives

• The Skill India Mission 2.0 focuses on upskilling the workforce in areas such as artificial intelligence (AI), green technology, and digital trade, aligning skills with the demands of emerging industries and export sectors.

Strategies for Enhancing Export Competitiveness

1. Infrastructure Modernization

• Establish export hubs near major ports to facilitate quicker and more efficient shipping processes.
• Implement AI-driven customs clearance processes to speed up clearance times and reduce bottlenecks.
• Enhance the Sagarmala and Bharatmala projects to improve port connectivity and road infrastructure, respectively.
• Develop connections to dry ports and logistics parks to ensure smooth cargo movement and reduce congestion at major ports.

2. Diversification and Value Addition

• Identify and target high-growth export sectors such as green hydrogen, semiconductors, aerospace, and precision tools.
• Promote processed agricultural products, technical textiles, and organic food items to tap into niche global markets that demand these products.

3. MSME Empowerment

• Expand the RAMP and TIES schemes to enhance the productivity and market access capabilities of MSMEs involved in export activities.
• Facilitate the participation of MSMEs in global public procurement opportunities through platforms like the Government e-Marketplace (GeM).

4. Quality and Compliance Enhancement

• Establish testing facilities that are globally accredited to ensure that Indian products meet international standards.
• Negotiate Mutual Recognition Agreements (MRAs) with other countries to simplify the recognition of testing and certification results across borders.
• Encourage compliance with international standards such as ISO, Codex, and HACCP to enhance product credibility and market acceptance.

5. Leveraging Digital Trade Opportunities

• Promote cross-border e-commerce initiatives through platforms like the Open Network for Digital Commerce (ONDC) and establish robust digital payment systems to facilitate seamless transactions.
• Support digital onboarding processes for exporters and ensure product traceability to enhance consumer trust and compliance.

6. Brand Building and Research & Development (R&D) Investment

• Launch a “Brand India” campaign that emphasizes innovation, sustainability, and the quality of Indian products to enhance global brand recognition.
• Increase public and private investment in R&D activities focused on areas such as AI, biotechnology, semiconductors, and pharmaceuticals to drive innovation and competitiveness in these sectors.

Conclusion

To fully harness its export potential, India needs to implement a comprehensive strategy that includes modernizing infrastructure, diversifying product offerings and markets, empowering MSMEs, and aligning with Industry 4.0 standards. By addressing supply-side constraints, ensuring regulatory alignment, and making the most of its youthful workforce, India can replicate the success stories of countries like South Korea and Vietnam. Achieving policy coherence, being adaptable on the global stage, and committing to sustainable practices will be key to establishing India as a reliable and resilient export powerhouse in the world.

India’s Economic Transformation: From Restricted to Global Investment Hub

Economic Evolution

Over the past decade, India has transformed its economy from being restricted and financially limited to becoming a global hub for investment. Initiatives like Viksit Bharat @2047 aim to link this growth with inclusive development, sustainability, and global competitiveness. Key factors such as FDI liberalisation, improvements in the Ease of Doing Business (EoDB), and significant infrastructure development are boosting investor confidence.

The PwC Global CEO Survey 2024 highlights India’s rising prominence, ranking it among the top 5 global investment destinations, reflecting its economic strength and reform-oriented governance.

Progressive Trends & Strategic Initiatives

A. Domestic Production & Self-Reliance

• Make in India : This initiative focuses on reducing import reliance by boosting domestic production in key sectors such as electronics, defence, and pharmaceuticals. For instance, India’s mobile manufacturing has increased 20 times in less than a decade.
• Production-Linked Incentive (PLI) Schemes : With an investment of ₹1.97 lakh crore across 14 sectors, these schemes aim to enhance domestic manufacturing and create jobs.
• Intellectual Property Rights (IPR) Ecosystem : The government is promoting innovation by speeding up patent approvals, offering incentives for start-ups, and reducing compliance costs.
• Digital India and AI Initiatives : Public digital infrastructure projects like the Aadhaar stack, DigiLocker, and the Open Network for Digital Commerce (ONDC) are fostering digital entrepreneurship and innovation.

B. Structural & Policy Reforms

C. Global Recognition & Rankings

• In the PwC 2024 CEO Survey, India improved its ranking to 5th place as the most attractive investment destination, up from 9th in 2023.
• 86% of Indian CEOs express optimism about the economy’s improvement in the coming year.
• The World Bank’s Logistics Performance Index (2023) saw India rise from 44th to 38th place, indicating enhanced trade facilitation.
• India’s ranking in the Global Innovation Index (2023) improved to 40th place, up from 81st in 2015, reflecting significant progress in innovation.

FDI Liberalization & Ease of Doing Business

A. Foreign Direct Investment (FDI) Trends

• Cumulative FDI from 2014 to 2024 exceeded $650 billion, a 119% increase compared to the previous decade.
• FDI in manufacturing rose from $98 billion to $165 billion between 2014 and 2024.
• Over the past five years, more than $70 billion in tech-related FDI has been invested in India.

B. Ease of Doing Business Outcomes

• The startup ecosystem has flourished, with over 100,000 startups recognized by the DPIIT and 110 unicorns emerging.
• In the first half of FY25, IPOs raised double the amount compared to FY24, indicating strong market confidence (KPMG).
• Retail investor confidence is reflected in strong oversubscription rates and SIP inflows, averaging around ₹19,000 crore per month.

C. Global Financial Integration

• India’s inclusion in JP Morgan’s GBI-EM index in 2024 and the anticipated inclusion in Bloomberg’s index could attract $30–40 billion in passive flows, further integrating India into global financial markets.

Ripple Effects on the Economy

A. Employment & MSME Growth

Initiatives like PM Gati Shakti, the National Logistics Policy, and the development of industrial corridors have significantly boosted local entrepreneurship and enhanced supply chain resilience.

Skill Development and Inclusion

Sustainable Progress

• Skill India Mission: Trained more than 1.5 crore youth in 500 different trades.
• MUDRA Yojana: Disbursed over ₹24 lakh crore, with around 70% of beneficiaries being women.
• Jan Dhan-Aadhaar-Mobile (JAM) Trinity: Achieved financial inclusion by opening 50 crore bank accounts.

Infrastructure and Industrial Capabilities

• Semiconductor Mission: With a budget of ₹76,000 crore, TATA Group and Micron are setting up fabrication plants.
• Mega Infrastructure Push: Initiatives like PM Gati Shakti, National Infrastructure Pipeline (₹111 lakh crore), High-Speed Rail, Expressways, and Green Energy Corridors.
• Renewable Energy Sector: India ranks 4th globally in renewable energy capacity, aiming for 500 GW by 2030.

• Geopolitical Volatility: Disruptions in supply chains due to conflicts and economic decoupling.
• Structural Reforms Pending: Challenges in land acquisition and labour code implementation due to state-level resistance.
• Judicial Delays: Difficulties in enforcing contracts, with skill gaps in areas like AI, green hydrogen, and semiconductors.

Way Forward for Viksit Bharat @2047

• Boost R&D Spending: Increase research and development spending from 0.7% to at least 2% of GDP.
• Integrated Skill Mapping: Align education with future skill requirements in areas like AI, climate technology, and robotics.
• Sustainable Growth Models: Encourage green finance, carbon credit trading, and compliance with Environmental, Social, and Governance (ESG) standards.
• Deepen Global Trade: Finalize Free Trade Agreements (FTAs) with the European Union and the United Kingdom, and enhance leadership in forums like the G20 and the Indo-Pacific Economic Framework (IPEF).
• Institutional Stability: Ensure predictable policies, enforce contracts, and maintain transparency in governance.

India's transition to a global investment hub is driven not only by its favourable demographics but also by deliberate policy changes, visionary leadership, and collaboration among various stakeholders. If India continues its reform trajectory, invests in its human capital, and leverages its geopolitical advantages, the vision for Viksit Bharat 2047 is attainable. This vision could position India as an economic powerhouse and a significant contributor to global economic governance.

Transforming India’s Financial Landscape

Inclusive Banking Reform

India’s aspiration to become a ‘Viksit Bharat by 2047’ is intricately connected to crucial financial reforms aimed at fostering inclusive growth, technological advancement, and enhancing global competitiveness.

• Reforms such as liberalising FDI in insurance, expanding rural banking through India Post, and improving infrastructure financing via NaBFID reflect the government’s commitment to building a robust, technology-driven economy.
• These initiatives align with the Sustainable Development Goals (SDGs), targeting objectives like poverty reduction (SDG 1), industry innovation (SDG 9), and promoting financial inclusion.

Key Reforms and Their Implications

1. Liberalising FDI in Insurance

• The limit on Foreign Direct Investment (FDI) in insurance has been increased from 74% to 100% to attract international investors.
• This change has led to $6.5 billion in FDI over the last nine years, with expectations for increased investment.
• The aim is to expand market access, particularly in rural and semi-urban areas where insurance coverage is currently low (3.7% in India compared to 7% globally).
• By 2030, the insurance sector is projected to generate 3 million jobs .
• Challenges include ensuring compliance with rural service obligations and preventing the emergence of market monopolies.

2. GST Rationalisation for Insurance

• The current 18% GST on insurance premiums makes coverage less affordable.
• Reducing the GST rate could significantly improve insurance accessibility, particularly for low-income individuals.

Addressing Revenue Loss for Long-Term Financial Inclusion

Inclusive Fintech Solutions

• Short-Term Trade-Off: The proposal may lead to an immediate loss of revenue.
• Long-Term Benefits: However, the long-term advantages of financial inclusion make this proposal crucial.

Technology-Driven Insurance

Government Investment: The government has set aside Rs 500 crore for establishing AI Centers of Excellence. These centers aim to enhance various aspects of insurance, including underwriting, fraud detection, and policy personalization through advanced technology.

• Operational Efficiency: The use of technology is expected to improve operational efficiency within insurance companies.
• Customer Satisfaction: By leveraging technology, insurance providers can offer better services, leading to increased customer satisfaction.
• Product Innovation: The initiative is likely to foster innovation in insurance products, making them more tailored to individual needs.

Challenges to Address: Despite the potential benefits, there are challenges that need to be addressed for effective implementation:

• Digital Divide: Ensuring that all segments of the population have access to the necessary technology and digital infrastructure is crucial.
• Data Privacy: Safeguarding data privacy is essential to build trust among consumers and comply with regulations.

Expansion of India Post Payment Bank (IPPB)

Role in Financial Inclusion: The India Post Payment Bank (IPPB) is vital for financial inclusion in India. It utilizes 2 lakh postmen and Gramin Dak Sevaks to offer banking services, reaching people in remote areas through over 1.36 lakh post offices.

• Improvement in FI-Index: The Financial Inclusion Index (FI-Index) has improved from 53.9 in 2021 to 64.2 in 2024, indicating better access to financial services. This progress is attributed to initiatives like IPPB's expansion.
• Rural Access: IPPB's efforts have significantly enhanced rural access to essential financial services such as savings accounts, insurance, and pension schemes.
• Ongoing Challenges: Despite these advancements, challenges remain in further improving last-mile connectivity and digital literacy. These issues need to be addressed to ensure comprehensive financial inclusion.

NaBFID’s Credit Enhancement Facility

Support for Infrastructure Financing: The National Bank for Financing Infrastructure and Development (NaBFID) plays a crucial role in supporting infrastructure financing in India. One of the ways it does this is through Partial Credit Enhancement (PCE) for corporate bonds.

• Approval for Projects: NaBFID has approved a significant amount of Rs 1.3 lakh crore for various infrastructure projects, particularly in the roads and energy sectors.
• Role of PCE: Partial Credit Enhancement helps improve the credit quality of corporate bonds, making them more attractive to investors. This, in turn, facilitates easier access to financing for infrastructure projects.

Growth of the Corporate Bond Market

Financial Innovation

• The corporate bond market in India is projected to expand significantly, reaching Rs 3 lakh crore by FY26. Currently, this market constitutes only 16% of GDP, which is far below the global average of 40%. This growth is expected to enhance the overall corporate bond market.
• However, a major challenge lies in ensuring the viability of bonds and maintaining investor confidence. Addressing these issues is crucial for the successful expansion of the corporate bond market.

Introduction of Grameen Credit Score (GCS) for Self-Help Groups (SHGs)

• The Grameen Credit Score (GCS) is being introduced to provide data-driven credit assessments for rural borrowers, particularly Self-Help Groups (SHGs) and farmers. This initiative aims to reduce reliance on informal lenders and supplement traditional credit scores like CIBIL.
• However, there are challenges to address, such as ensuring data accuracy and preventing over-indebtedness, to ensure sustainable credit access for these borrowers.

Challenges and Future Directions

• One of the main challenges is finding a regulatory balance that guarantees foreign insurers meet their rural coverage obligations while fostering competition in the market.
• Additionally, there is a growing need for skills development to keep pace with the increasing demand for AI-related roles, particularly in cybersecurity within the insurance sector.
• The National Bank for Financing Infrastructure and Development (NaBFID) needs to implement transparent risk-assessment frameworks for infrastructure financing to ensure sustainability and accountability.
• Furthermore, inclusive policies that combine Goods and Services Tax (GST) reductions with targeted subsidies can help offset potential revenue losses from lower taxes.

India’s financial reforms are crucial for achieving the ambitious goal of a $10 trillion economy by 2047. These reforms aim to boost Foreign Direct Investment (FDI), harness technology, and improve financial inclusion, addressing significant gaps in insurance penetration, rural credit access, and infrastructure financing. The success of these initiatives relies on effective implementation, collaboration among stakeholders, and adaptive regulation. By focusing on these areas, India not only aims to accelerate economic growth but also ensure equitable, resilient, and sustainable development, aligning with the vision of ‘ Sabka Saath, Sabka Vikas ’ (Together with All, Development for All).

Boosting Manufacturing and Trade in India

Sustainable Manufacturing

The Union Budget 2025-26 for India outlines a comprehensive strategy to enhance the manufacturing sector, reduce trade deficits, and promote self-reliance through the Atmanirbhar Bharat initiative. The budget aims to stimulate growth in key sectors and strengthen India’s position in global trade through various policy measures, financial incentives, and infrastructure improvements.

1. National Manufacturing Mission (NMM)

• Objective: Increase the share of manufacturing in GDP from 16-17% to 25% by 2030, aligning with global leaders like China (28%) and South Korea (25%).
• Key Focus Areas: Enhance the ease of doing business, improve skills training, support Micro, Small, and Medium Enterprises (MSMEs), provide access to technology, and ensure product quality.
• Sustainability Initiatives: Promote clean technologies such as solar photovoltaic (PV), electric vehicles (EVs), and batteries, along with circular economy practices to reduce environmental impact.
• Trade Deficit Reduction: Target to decrease the trade deficit of $250 billion by increasing local production of high-demand items like semiconductors and solar panels.

2. Fiscal and Policy Reforms

• Customs Duty Exemptions: Waivers on Basic Customs Duty for critical minerals like lithium and cobalt, as well as shipbuilding inputs, to lower production costs and attract foreign investment.
• Smartphone Components: Removal of a 2.5% import duty to position India as a global hub for electronics manufacturing.
• Simplified Tax Structure: Introduction of a single cess or surcharge to create a more predictable tax environment for investors.

3. Expansion of Production-Linked Incentive (PLI) Scheme

• Sectors Included: Expanded to cover 14 key sectors, including electronics, automobiles, and textiles.
• Financial Allocations: ₹8,885 crore for Electronics/IT and ₹2,819 crore for EV component production.
• Impact: Positioned India as the second-largest mobile phone producer globally, significantly boosting manufacturing output.

4. Support for Micro, Small, and Medium Enterprises (MSMEs)

• Economic Contribution: MSMEs account for 35% of manufacturing output, 30% of Gross Value Added (GVA), and employ 25.18 crore people.
• Credit Support: Increase in guarantee limit to ₹10 crore for micro and small enterprises, with an additional ₹1.5 lakh crore credit over five years.
• Focus on Entrepreneurship: Provision of loans up to ₹2 crore for 5 lakh first-time entrepreneurs, with a focus on women and Scheduled Caste/Scheduled Tribe (SC/ST) communities.

5. Support for Labour-Intensive Sectors

• Leather and Footwear: Target of creating 22 lakh jobs, with Basic Customs Duty exemptions for crust and wet blue leather.
• Textiles: Introduction of the Cotton Productivity Mission to enhance the quality of staple varieties, supported by a 57.7% budget increase to ₹5,272 crore.
• Toys: Initiative to boost domestic manufacturing and reduce reliance on imports, particularly from China, which accounted for 64% of toy imports in FY24.

6. Export Promotion and Digital Infrastructure

• Export Promotion Mission: Allocation of ₹2,250 crore to improve credit access, address non-tariff barriers, and promote cross-border factoring.
• Bharat TradeNet (BTN): Development of a unified digital platform to streamline trade documentation and facilitate smoother trade operations by easing non-tariff barriers.

7. Infrastructure Development and Research & Development (R&D)

• Logistics: Investments in enhancing air cargo infrastructure, particularly for perishable goods.
• R&D Fund: Allocation of ₹20,000 crore for research in areas such as artificial intelligence (AI), semiconductors, renewable energy, and Industry 4.0 technologies.
• Special Economic Zone (SEZ) Reforms: Introduction of the new DESH legislation to replace existing SEZs, facilitating quicker customs clearances and promoting state partnerships.

8. Focus on Sustainable Growth

• Green Manufacturing: Emphasis on eco-friendly manufacturing practices, including investments in electric vehicles (EVs) and solar technologies, while enhancing resource efficiency across various industries.

Policy Updates

Rural Financial Growth

Incentive Scheme for Low-value BHIM-UPI (P2M) Transactions:

• The Union Cabinet has given the green light to an Incentive Scheme aimed at promoting low-value BHIM-UPI (P2M) transactions for small merchants in the fiscal year 2024-25. This scheme comes with a substantial outlay of Rs 1,500 crore.
• The scheme specifically targets transactions up to Rs 2,000, offering an incentive of 0.15% per transaction. To ensure smooth disbursement, 80% of the claims will be paid out without any conditions. The remaining 20% is contingent upon meeting technical criteria, including a decline below 0.75% and system uptime exceeding 99.5%.
• The scheme aims to facilitate transactions worth Rs 20,000 crore, thereby promoting the use of BHIM-UPI and encouraging greater adoption in rural areas through products like UPI 123PAY and UPI Lite.
• This initiative is a step towards fostering a less-cash economy and reinforcing the digital payment infrastructure across the country.
• The government is actively promoting digital payments as a means of enhancing financial inclusion, with cost recovery through the Merchant Discount Rate (MDR). The MDR for debit cards is capped at 0.90%, while for UPI P2M transactions, it stands at 0.30%. Since January 2020, the MDR has been waived for RuPay Debit Cards and BHIM-UPI to incentivize digital transactions.
• The Incentive Scheme is designed to support RuPay and BHIM-UPI transactions, with payouts directed to acquiring banks, issuer banks, payment service providers, and app providers (TPAPs).

Revised National Programme for Dairy Development (NPDD):

• The Union Cabinet has approved the Revised National Programme for Dairy Development (NPDD) covering the period from 2021 to 2026.
• This initiative aims to modernize dairy infrastructure, enhance milk procurement, processing, and quality control, ultimately assisting farmers in accessing markets, obtaining better prices, and improving supply chain efficiency.
• The NPDD comprises two components: Component A focuses on improving dairy infrastructure, particularly in remote areas, while Component B provides support to dairy cooperatives with assistance from Japan.
• Since its inception, the NPDD has positively impacted over 18.74 lakh farmers, generated 30,000 jobs, and increased milk procurement capacity by 100.95 lakh litres per day.
• The program has also upgraded 51,777 village-level milk testing laboratories and installed 5,123 bulk milk coolers.
• The revised NPDD is expected to establish 10,000 new dairy cooperatives and create 3.2 lakh additional jobs, thereby strengthening rural livelihoods and contributing to the White Revolution 2.0.

Revised Rashtriya Gokul Mission (RGM):

• The Union Cabinet has approved the Revised Rashtriya Gokul Mission (RGM) with a significantly increased budget of Rs 3,400 crore for the period 2021 to 2026.
• Key enhancements in the mission include 35% capital assistance for establishing Heifer Rearing Centres, aiming to set up 30 facilities housing 15,000 heifers, and 3% interest subvention on loans for acquiring High Genetic Merit (HGM) IVF heifers.
• The RGM is designed to strengthen various aspects of the bovine sector, including semen stations, artificial insemination, bull production, and breed improvement initiatives.
• Over the past decade, the country has witnessed a remarkable 63.55% increase in milk production, with per capita milk availability rising from 307 grams per day in 2013-14 to 471 grams per day in 2023-24.
• The Nationwide AI Programme, a crucial component of the mission, has successfully covered 8.39 crore animals and benefitted 5.21 crore farmers.
• Additionally, the RGM places a strong emphasis on the preservation of indigenous bovine breeds, leveraging genomic chips and IVF technology to enhance milk productivity and improve farmers’ incomes.

Overview of the Scheme

Dairy Development

• The scheme aims to modernize dairy infrastructure and improve various aspects of the dairy sector, including milk procurement, processing, and quality control.
• The primary goals are to enhance farmers' access to markets, improve prices, and increase supply chain efficiency.

Components of the Scheme

• Component A focuses on enhancing dairy infrastructure, especially in remote areas.
• Component B promotes the development of dairy cooperatives in collaboration with Japan.

Impact of the NPDD

• The National Dairy Plan (NPDD) has positively impacted over 18.74 lakh farmers and created 30,000 jobs.
• It has significantly increased milk procurement capacity by 100.95 lakh litres/day.
• The initiative has led to the upgrading of 51,777 village-level milk testing labs and the installation of 5,123 bulk milk coolers.
• The revised scheme aims to establish 10,000 new dairy cooperatives, generate 3.2 lakh jobs, and strengthen rural livelihoods, contributing to the White Revolution 2.0.

Funding and Approval

The Union Cabinet has approved the Revised Rashtriya Gokul Mission (RGM) with an increased budget of Rs 3,400 crore for the period from 2021 to 2026.

• The new additions include:
  • 35% capital assistance for setting up Heifer Rearing Centres, which will have 30 facilities and 15,000 heifers.
  • 3% interest support on loans for purchasing High Genetic Merit (HGM) IVF heifers.
• The scheme is designed to strengthen various aspects of cattle breeding and milk production, including:
  • semen stations,
  • artificial insemination,
  • bull production, and
  • breed improvement.
  Over the past ten years, milk production has seen a significant increase of 63.55%. During the same period, milk availability per person has risen from 307 grams per day in 2013-14 to 471 grams per day in 2023-24.
• The Nationwide AI Programme has successfully covered 8.39 crore animals and has benefited 5.21 crore farmers. One of the mission's goals is to preserve indigenous bovine breeds using advanced technologies like genomic chips and IVF technology. This not only aims to enhance milk productivity but also improve farmers' incomes.

Indigenous Dairy Progress

News Digest

AI-Driven Semiconductors

India’s First Indigenous Semiconductor Chipset Set for Production by 2025

• Madhya Pradesh is emerging as a significant hub for electronics, boasting 85 active electronics companies and the establishment of two new electronics manufacturing clusters in Bhopal and Jabalpur. The state is also focusing on skill development, with 85,000 engineers being trained in advanced electronics, including 20,000 engineers trained specifically within Madhya Pradesh.
• India ranks among the top three countries in electronics exports, valued at Rs 5 lakh crore.

AIKosha

• AIKosha, also known as the IndiaAI Datasets Platform, is a secure repository designed to enhance AI innovation across India. The platform offers access to over 300 datasets and 80 AI models for various applications.
• It features an AI sandbox with an integrated development environment (IDE), tools, and tutorials to support AI research and development. Key datasets available on the platform include data from the 2011 Census, satellite images from Indian satellites, Open Governance Data, health data, as well as meteorological and pollution data.
• These resources aim to facilitate diverse AI solutions across different sectors. By providing reliable data, AIKosha seeks to empower developers, researchers, and organizations, fostering AI-driven innovation throughout the country.

Jaipur 3R and Circular Economy Declaration (2025–2035)

• During the 12th Regional 3R and Circular Economy Forum held in Jaipur, countries from the Asia-Pacific region came together to endorse the Jaipur Declaration (2025–2035). This declaration sets forth a vision for a circular, low-carbon, and resource-efficient economy in the region.

• The declaration advocates for the 3R principles— Reduce, Reuse, and Recycle. It aligns with international frameworks such as the Sustainable Development Goals (SDGs), the Paris Agreement, and the Kunming-Montreal Biodiversity Framework, while building upon the Hanoi 3R Declaration.
• Key outcomes include India’s initiative for the Cities Coalition for Circularity (C-3) to enhance collaboration and knowledge sharing, the establishment of a working group for its operational framework, and a Memorandum of Understanding (MoU) under CITIIS 2.0 for circular projects in urban areas. Focus areas involve addressing the triple planetary crisis of climate change, biodiversity loss, and pollution, along with promoting resource efficiency, local industry, and employment.

Maritime Reforms 2025

Sustainable Innovation

• The government has introduced significant maritime reforms, including the ‘One Nation-One Port Process (ONOP)’. This initiative aims to standardise operations across all major ports, enhancing efficiency, reducing logistics costs, and improving the overall ease of doing business.

Bharat Global Ports Consortium

Innovative Connections

• The Bharat Global Ports Consortium has been established to strengthen global trade resilience and bolster Make in India exports. This initiative includes the MAITRI platform (Master Application for International Trade and Regulatory Interface), which leverages AI and Blockchain technologies to create a seamless virtual trade corridor.
• Furthermore, the India Maritime Week 2025 is scheduled to be held in Mumbai from October 27 to 31, anticipating the participation of 100,000 delegates from 100 countries. This event will underscore India’s strategic objectives in maritime development.

India's First Semiconductor Fabrication Unit

• India is set to establish its first commercial semiconductor fabrication unit in Dholera, Gujarat. This initiative is part of a Fiscal Support Agreement (FSA) between the India Semiconductor Mission (ISM) and Tata Electronics.
• The project, exceeding Rs 91,000 crore in value, will receive 50% fiscal support from the Indian government. With the backing of Taiwan’s PSMC, the fabrication unit will produce chips for various sectors, including automotive, computing, artificial intelligence, and communication.
• This venture is anticipated to generate over 20,000 jobs and represents a significant milestone in India’s pursuit of technological self-reliance and strengthening its semiconductor supply chain.

Khelo India Para Games 2025

• The second edition of the Khelo India Para Games (KIPG) is set to take place in New Delhi from March 20 to 27, 2025. This event will feature 1,230 para-athletes competing across six different disciplines.

Event Overview

Para-athletics Triumph

• The upcoming event will showcase some of the best para-athletes from India.
• Among the participants will be medal winners from the Paris 2024 Paralympics and the 2022 Asian Para Games.

Featured Athletes

• Harvinder Singh – A talented archery para-athlete.
• Dharambir – A skilled competitor in the club throw event.
• Praveen Kumar – An accomplished high jump para-athlete.