Economic Development - 2 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Lab-Grown Diamonds

Why in news?

Lab-grown diamonds (LGDs), commonly referred to as synthetic diamonds, are making significant waves in the traditional diamond market. These diamonds are produced in controlled laboratory environments using sophisticated methods that replicate the natural conditions under which diamonds form deep within the Earth.

What are Laboratory-Grown Diamonds?

About: LGDs are created in laboratories, contrasting with naturally formed diamonds. Despite their different origins, their chemical makeup as well as their physical and optical properties are identical to those of natural diamonds.

Formation Time: Natural diamonds require millions of years to develop, occurring when carbon deposits buried deep within the earth undergo extreme heat and pressure.

Manufacturing Processes: The primary methods for creating LGDs are:

• High Pressure High Temperature (HPHT) method
• Chemical Vapour Deposition (CVD) method

Both methods initiate the diamond growth from a seed, which is a slice of another diamond. In the HPHT process, the seed is combined with pure graphite carbon and subjected to temperatures around 1,500 degrees Celsius and immense pressure. In contrast, the CVD method heats the seed to approximately 800 degrees Celsius in a sealed chamber filled with a carbon-rich gas, allowing the gas to adhere to the seed and gradually form the diamond.

Applications:

• LGDs are utilized for various industrial applications such as tools and machinery, where their hardness and durability make them particularly suitable for cutting instruments.
• Pure synthetic diamonds are also employed in electronics, serving as heat spreaders for high-power laser diodes, laser arrays, and transistors.
• In addition to industrial uses, LGDs are also favored for luxurious and aesthetic purposes.

Significance:

• The environmental impact of lab-grown diamonds is considerably lower than that of natural diamonds. According to research from Diamond Foundry, a manufacturer focused on sustainability, extracting a natural diamond from the earth consumes ten times more energy than producing one in a lab.
• Open-pit mining, a prevalent method for obtaining natural diamonds, requires moving vast amounts of earth and rock, leading to significant environmental disruption.

What is the Scenario of Lab-Grown Diamonds in India?

• Surat: The Hub of Diamond Cutting and Polishing: Surat is a crucial center in the global diamond trade, responsible for cutting and polishing approximately 90% of the world's diamonds.
• The Rise of Lab-Grown Diamond Exports from India: From 2019 to 2022, India's exports of lab-grown diamonds tripled in value. Between April and October 2023, export volumes increased by 25%, compared to a 15% growth during the same period the previous year. The popularity of LGDs is attributed to their affordability and ethical production, often referred to as "blood-free diamonds" since they ensure no involvement in violence or human rights abuses.
• Market Share and Industry Impact: The global market share of lab-grown diamonds has escalated from 3.5% in 2018 to 18.5% in 2023, with expectations that it will surpass 20% by 2024-2025. This rapid growth is exerting pressure on an industry already facing geopolitical challenges and diminishing demand for natural diamonds.

What are the Ethical Concerns Related to Natural Diamonds?

• Blood Diamonds (Conflict Diamonds): Some natural diamonds originate from conflict zones, known as blood or conflict diamonds, where the profits from their sale fund armed conflicts and contribute to human rights abuses, causing immense suffering in affected regions.
• Exploitation and Labour Conditions: Workers in natural diamond mines often face harsh working conditions, receive low wages, and lack job security. Child labor remains a significant issue in certain mining regions.
• Environmental Impact: Natural diamond mining is infamous for its environmental degradation, leading to deforestation, soil erosion, and the release of harmful chemicals into ecosystems, which adversely affects local communities and their livelihoods.
• Conversely, lab-grown diamonds are seen as a more eco-friendly alternative, as they significantly reduce the need for destructive mining practices.
• Money Laundering and Corruption: The diamond trade is frequently associated with money laundering and corruption, which hampers social and economic development in diamond-producing nations. Addressing these issues necessitates increased transparency and accountability.

What are the Government Initiatives to Promote Lab-Grown Diamonds?

• Five-Year Research Grant: In the Union Budget of 2023-24, the government announced a five-year research grant directed towards one of the Indian Institutes of Technology (IITs). This initiative aims to foster the indigenous production of LGD machinery, seeds, and technology recipes. IIT Madras has been selected for this project, and the proposed India Centre for Lab-Grown Diamond (InCent-LGD) will provide technical support to industries and entrepreneurs. The objective is to enhance local manufacturing of both CVD and HPHT systems and to grow the LGD sector.
• Customs Duty Reduction: The government has lowered customs duties on lab-grown diamond seeds to make production more economical and stimulate the growth of the LGD industry. The duty on seeds for rough LGDs has been reduced from 5% to zero.
• New Tariff for Synthetic Diamonds: The government has proposed new tariff lines to better categorize various synthetic diamond products. This step aims to facilitate trade and clarify eligibility for reduced import duties, promoting efficiency and transparency in trade matters.

Conclusion

Lab-grown diamonds are not merely a passing trend; they signify a transformative change in the diamond industry. As technological advancements continue and consumer awareness increases, these brilliant gems are reshaping the way diamonds are perceived and purchased.

Horticulture Sector in India

Why in News?

India has recently observed a significant transformation in dietary preferences, prioritizing nutrition security over mere calorie consumption. To cater to the changing dietary demands of a growing population, there has been a remarkable rise in horticulture farming throughout the country.

What is Horticulture Farming?

• Horticulture is a sector of agriculture focused on the intensive cultivation of plants that are directly utilized by humans for food, medicinal purposes, and aesthetic enjoyment.
• It encompasses the cultivation, production, and sale of vegetables, fruits, flowers, herbs, and ornamental plants.
• The term originates from the Latin words "hortus" (garden) and "cultura" (cultivation).
• L.H. Bailey is recognized as the Father of American Horticulture.
• M.H. Marigowda is celebrated as the Father of Indian Horticulture.

Classification:

• Pomology: Focuses on the planting, harvesting, storing, processing, and marketing of fruit and nut crops.
• Olericulture: Involves the production and marketing of vegetables.
• Arboriculture: Concerns the study, selection, and care of individual trees, shrubs, or other perennial woody plants.
• Ornamental Horticulture: Divided into two subcategories:
  • Floriculture: Involves the production, usage, and marketing of floral crops.
  • Landscape Horticulture: Deals with the production and marketing of plants intended to enhance outdoor environments.

What is the State of Horticulture Sector in India?

• India ranks as the second-largest producer of horticultural products globally.
• The horticulture sector contributes approximately 33% to the Gross Value Added (GVA) of agriculture, playing a vital role in the Indian economy.
• Current production stands at around 320.48 million tons, surpassing food grain production despite utilizing significantly less land (25.66 million hectares for horticulture compared to 127.6 million hectares for food grains).
• Productivity in horticulture is markedly higher than in food grains, with yields of 12.49 tons per hectare versus 2.23 tons per hectare.
• From 2004-05 to 2021-22, productivity of horticultural crops has risen by around 38.5%.
• India leads in the production of specific vegetables (such as ginger and okra) and fruits (like bananas, mangoes, and papayas).
• In terms of exports, India ranks 14th, holding only 1% of the global horticultural market share.
• Approximately 15-20% of fruits and vegetables produced in India are wasted throughout the supply chain or at the consumer level, contributing to greenhouse gas emissions.

What are the Challenges Faced by the Horticulture Sector in India?

Climate Change Vulnerability:

• Erratic Weather Patterns: Variations in temperature, rainfall, and unpredictable weather conditions significantly challenge horticultural production, leading to reduced yields and crop losses.
• Extreme Events: The increasing frequency of droughts, floods, and cyclones disrupts production and impacts crop quality.

Water Management Issues:

• Water Scarcity: Limited access to irrigation and poor water management hinder the growth of horticultural crops, especially in regions facing water stress.
• Overexploitation of Water Resources: Unsustainable groundwater extraction and ineffective irrigation techniques exacerbate water scarcity problems.

Pests and Diseases:

• Pesticide Resistance: Growing resistance of pests and diseases to traditional pesticides necessitates the development of integrated pest management (IPM) practices.
• Invasive Species: The introduction and spread of invasive pests and diseases pose significant threats, requiring robust monitoring and management strategies.

Post-Harvest Losses and Infrastructure Constraints:

• Inadequate Storage Facilities: The lack of proper storage infrastructure leads to post-harvest losses, diminishing shelf life and market value of horticultural products.
• Cold Chain and Transportation Challenges: Insufficient cold chain facilities and inadequate transport networks result in spoilage of perishable goods.

How can the Horticulture Sector be Improved?

Adoption of Climate-Smart Practices:

• Encourage the use of climate-resilient crop varieties and sustainable farming methods to counteract the adverse effects of climate change.
• Invest in research to develop drought-tolerant and heat-resistant crop varieties suitable for changing conditions.

Efficient Water Management:

• Promote drip irrigation, rainwater harvesting, and other water-saving technologies to optimize water usage in horticulture.
• Implement strategies like water pricing and watershed management to tackle water scarcity.

Integrated Pest and Disease Management:

• Encourage the adoption of IPM practices that emphasize biological control and cultural methods along with careful pesticide use.
• Strengthen surveillance systems for early detection and management of pest and disease outbreaks.

Investment in Infrastructure and Value Chain Development:

• Upgrade and expand cold storage, packhouses, and transportation networks to minimize post-harvest losses and enhance market access.
• Foster public-private partnerships to boost infrastructure development and improve the competitiveness of the horticultural value chain.

Capacity Building and Knowledge Transfer:

• Provide training to farmers on modern agricultural techniques and good practices to enhance productivity and market orientation.
• Encourage collaboration between research institutions and agricultural extension agencies to share best practices and innovations.

What are the Government Initiatives to Improve Horticulture?

Mission for Integrated Development of Horticulture (MIDH):

• About: A Centrally Sponsored Scheme aimed at the comprehensive growth of the horticulture sector, covering a variety of crops including fruits, vegetables, mushrooms, spices, and more.
• Nodal Ministry: Implemented by the Ministry of Agriculture and Farmers Welfare since 2014-15 under the Green Revolution - Krishonnati Yojana.
• Funding Pattern: 60% from the Union and 40% from states, with a higher contribution for North Eastern and Himalayan states (90%).

MIDH Sub-Schemes:

• National Horticulture Mission (NHM): Implemented by State Horticulture Missions in selected districts across 18 states and 6 Union Territories.
• Horticulture Mission for North East & Himalayan States (HMNEH): Focuses on the overall development of horticulture in these regions.
• Central Institute for Horticulture (CIH): Established in Nagaland to provide technical support and training for farmers in the northeastern region.
• Horticulture Cluster Development Programme: Aims to grow and enhance specific horticulture clusters to improve their global competitiveness.

Conclusion

To achieve demand-driven production, increased productivity, effective credit and risk management, and improved market connections, it is crucial to strengthen partnerships among farmers, government, consumers, industry, and academia. As India aims to become a leading global hub for fruits and vegetables, collaborative efforts will be essential for enhancing income and livelihood opportunities for small-scale farmers.

Parliamentary Committee on local fintech players

Why in news?

The Standing Committee on Communications and Information Technology has raised concerns regarding the significant influence of foreign-owned fintech applications in India. The committee has recommended greater support for Indian-owned fintech applications.
The Unified Payments Interface (UPI) has demonstrated substantial usage, comprising 73.5% of all digital transactions in terms of volume for the fiscal year 2022-23, although its representation in the total payment value is only 6.67%.

What is National Payments Corporation of India (NPCI)?

• NPCI serves as an overarching body responsible for managing retail payment and settlement systems in India.
• It was established as a collaborative initiative by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) under the Payment and Settlement Systems Act, 2007.
• Its primary goal is to develop a robust payment and settlement infrastructure throughout India.
• NPCI operates as a "Not for Profit" entity under Section 25 of the Companies Act, 1956 (now Section 8 of the Companies Act, 2013).

What is UPI?

• UPI is a payment system that integrates multiple bank accounts into a single mobile application, allowing users to access various banking features, efficient fund routing, and seamless merchant payments.
• It supports "Peer to Peer" collection requests, which can be scheduled and paid according to user convenience.

News Summary: Parliamentary Committee on local fintech players:

• The committee emphasized the need to regulate digital payment applications due to their rising popularity in India.
• It suggested that regulation should focus more on local apps than on foreign ones, which would be feasible for the RBI and NPCI.

Domination of Foreign-Owned Fintech Apps:

• The committee highlighted the dominance of foreign fintech applications, such as PhonePe (backed by Walmart) and Google Pay, in the Indian market.
• As of late 2023, PhonePe commanded a market share of 46.91%, while Google Pay held 36.39%.
• In contrast, NPCI's BHIM UPI accounted for only 0.22% of transaction volume.

Usage Statistics:

• According to NPCI, PhonePe users initiated 5,642.66 million transactions, while Google Pay users completed 4,375 million transactions.
• In comparison, BHIM recorded merely 24.30 million transactions.

Committee’s recommendation supported NPCI's Transaction Volume Cap:

• In November 2020, NPCI imposed a 30% cap on transaction volumes for third-party applications using the UPI to maintain a balanced ecosystem.
• Apps exceeding this cap were initially given until December 31, 2022, to comply, but this deadline was extended to December 31, 2024, to allow for further growth and balance.
• The committee endorsed this regulatory measure in its findings.

Fintech Companies and Money Laundering Concerns:

• The committee expressed concerns over the misuse of fintech platforms for money laundering activities.
• An example discussed was the Pyppl app, linked to Chinese investment scams, which complicated tracking for Indian law enforcement.

Fraud Trends and Ratio:

• Despite an increase in transaction volumes over the past five years, the proportion of fraudulent transactions has remained low.
• The ratio of fraudulent transactions to total transactions was approximately 0.0015%, which slightly increased to 0.0016% by September 2023.

Impact on UPI Users:

• The fraction of UPI users experiencing fraud stood at 0.0189%, indicating a relatively low impact on the overall user base compared to total transactions.

Advantages of Local and Foreign Fintech Players:

• Local fintech firms have an intrinsic understanding of the Indian customer base and the broader digital infrastructure.
• Foreign fintech companies excel in utilizing advanced technologies and innovative methods, benefiting from global networks.
• A balanced ecosystem of local and foreign fintech players is essential for effectively serving India's diverse financial sectors, including payments, lending, and insurance.

Regulatory Emphasis on Accountability and Compliance:

• Analysts noted the importance of accountability and compliance with local regulations within the fintech sector.
• Adhering to regulatory standards is crucial for maintaining the integrity and stability of the fintech landscape in India.

Lakshadweep: Balancing Geopolitical Challenges and Unleashing Tourism Opportunities

Why in news?

The Maldivian government recently sparked outrage among Indian citizens for using derogatory language towards Indians and the Indian Prime Minister in response to his visit to Lakshadweep.

Boycott Maldives’ Movement & Turmoil in Indian-Maldivian Relations

Recently, the Maldives government faced significant backlash from Indian citizens due to derogatory remarks made against Indians and the Indian Prime Minister following his visit to Lakshadweep. This sparked widespread social media campaigns advocating for a 'boycott Maldives' and 'choose Lakshadweep' movement. The situation escalated into a diplomatic dispute when India formally lodged a complaint with the Maldivian government regarding the offensive statements made by their ministers. In response to the growing tensions, the Maldivian government dismissed the ministers responsible for the comments. Despite these actions, the anger among Indian citizens persisted, leading to thousands canceling their travel plans to the Maldives and encouraging others to do the same. Additionally, the Maldivian tourism sector issued a formal apology to Indian tourists, who represent the largest group of visitors to the country.

The direct impact of tourism is crucial for the Maldives, contributing over 20% to its GDP, with indirect contributions reaching as high as 80%. In 2023, around 210,000 Indians traveled to the Maldives, solidifying their status as the predominant nationality among tourists.

India has historically been a key partner for the Maldives, providing both financial and military support. For example, India extended a financial assistance package of $250 million to help the Maldives navigate the economic challenges posed by the pandemic, alongside donating COVID-19 vaccines through the Vaccine Maitri initiative. However, a faction within the Maldivian populace has exhibited anti-Indian sentiments, aligning themselves with China. This group has organized protests under the banner 'India-Out,' significantly influencing the election campaign of the current President, Mohammed Muizzu. The opposition party previously criticized the presence of Indian defense personnel in the Maldives, labeling it as 'militarization by India.' Anti-India sentiment has been exacerbated by growing radicalization within the Maldives, with perceptions that India supports Israel in its conflict with Hamas.

Lakshadweep: Islands, Administration, and Cultural Diversity in the Arabian Sea

• Lakshadweep is an archipelago consisting of 36 islands situated in the Arabian Sea, approximately 440 km from Kerala's coast.
• The term "Lakshadweep" means "one lakh islands" in both Malayalam and Sanskrit, though the actual number of islands is less than a hundred.
• This Union Territory is divided into 10 subdivisions, with Kavaratti serving as its capital.
• The Lieutenant Governor acts as the head of the Union Territory's government, and it falls under the jurisdiction of the Kerala High Court.
• Jeseri, a dialect of Malayalam, is the primary language spoken in Lakshadweep.
• The majority of the indigenous population practices Islam, specifically the Shafi school of the Sunni sect.
• Culturally, the inhabitants share similarities with the Malayalis from Kerala, with significant resemblance to the Mapillas.
• The Minicoy islands are home to the ethnically distinct Mahl people.

Lakshadweep: Geological Wonders and Climate Harmony of the Archipelago

• The Lakshadweep islands are the northernmost section of the Lakshadweep–Maldives–Chagos group, characterized as the peaks of a vast underwater mountain range known as the Chagos-Lakshadweep Ridge.
• The geographical composition includes 12 atolls, three reefs, five submerged banks, and ten inhabited islands, formed from the exposed parts of underwater volcanic mountains.
• The islands are separated from each other by the 200-km-wide Nine Degree Channel, which lies between the Laccadive and Minicoy islands.
• The soil composition results from the disintegration of limestone from corals and sedimentary rocks due to prolonged exposure.
• The region experiences a tropical maritime climate, with minimal temperature variation between summer and winter.

Lakshadweep: Tracing Centuries of Trade, Cultural Encounters & Changing Dynasties

• Lakshadweep's strategic location on the main trade route connecting the Middle East to the Malabar Coast, Ceylon, and Southeast Asia has historically made it significant.
• References to Lakshadweep can be found in Buddhist Jataka tales dating back to the sixth century BCE, highlighting its status as a trade hub visited by notable figures like the Buddhist monk Sanghamitra.
• The introduction of Islam occurred in the seventh century through Arab traders, preceding the British colonial era, during which the area was governed by the Chera and Chola dynasties, followed by the Kingdom of Kannur.
• Notable rulers included the Muslim house of Arakkal and Tipu Sultan. The Union Territory was established in 1956 after the British left.

Lakshadweep: Strategic Gem, Tourism Haven, and Ecological Marvel

• Lakshadweep serves as a potential naval outpost for the Indian Navy in the Arabian Sea, enhancing maritime security.
• This region has been historically used for smuggling arms and narcotics, necessitating security measures for internal safety.
• Its geographical position allows monitoring of piracy and vessel movements in the Arabian Sea.
• The nine-degree channel is the most direct route for shipping between West Asia and East Asia.
• Developing Lakshadweep could serve as a leverage point for India in negotiations with the Maldivian government, which has shown favoritism towards China.

Lakshadweep: Untapped Beauty, Tourism Aspirations, and the Road to Development

• Lakshadweep has vast tourism potential due to its favorable climate and geographical features similar to the Maldives.
• Currently, the Union Territory lacks adequate infrastructure to accommodate tourists, including world-class hotels and seamless connectivity to the mainland.
• The government is focusing on developing Minicoy Island, a scenic destination close to the Maldives, to attract tourists.
• To facilitate tourism, liquor sales have been authorized at specific locations with the Tourism department's approval.

Lakshadweep: Exploring the Economic Riches of its Exclusive Economic Zone

• The Exclusive Economic Zone (EEZ) surrounding the islands is rich in fisheries and minerals, holding significant economic value.
• Deep-sea mining in these waters is expected to yield precious metals like cobalt, nickel, and copper, which can boost the local economy.

Lakshadweep: Exploring Solar, Wind, and Wave Energy Potential

• With its extensive open seas, Lakshadweep presents opportunities for establishing floating solar energy generation units.
• The region's monsoonal winds make it a viable site for offshore wind energy projects.
• Wave energy, harnessed from the ocean's motion, could provide sustainable energy solutions for Lakshadweep.

Lakshadweep: Celebrating the Unique Flora and Fauna of the Coral Isles

• The coral ecosystem in Lakshadweep is one of the most biodiverse underwater regions in India.
• The islands are home to an impressive variety of flora and fauna, with 400 plant species, 101 bird species, and 603 marine fish species documented.

Lakshadweep’s Challenges: Balancing Preservation, Accessibility, and Sustainable Development

• Increasing human presence is likely to lead to waste generation and pollution, posing risks to the islands' delicate ecology.
• Due to their fragile environment, the islands are ill-equipped to handle a large influx of tourists.
• Transport to Lakshadweep is expensive, with limited options available (flights or ships).
• Conservative local attitudes, influenced by religious beliefs, can limit the acceptance of tourism, including restrictions on alcohol sales.
• Lakshadweep lacks sufficient resources (food, water, electricity) to support a heavy tourist population.
• Infrastructure deficits in transportation, healthcare, and education hinder the development necessary for tourism growth.

Lakshadweep’s Path Ahead: Building Infrastructure and Embracing Sustainable Tourism Development

• To evolve into a major tourist destination, Lakshadweep needs urgent improvements in basic infrastructure.
• Sustainable development strategies must be implemented to promote tourism without compromising the environment.

India Employment Report 2024 - Employment Conditions Continue to be Poor

Why in news?

The International Labour Organisation (ILO) and the Institute of Human Development (IHD) have jointly published a report titled “India Employment Report 2024.” The report sheds light on the current state of employment in India, particularly focusing on the challenges faced by the youth in the labour market.

About Institute of Human Development (IHD):

• The Institute for Human Development (IHD) was founded in 1998 under the Indian Society of Labour Economics (ISLE).
• Its mission is to foster a society that values inclusivity in social, economic, and political systems, aiming to eliminate poverty and deprivation.
• IHD conducts research in various domains including labour, employment, gender issues, health, education, and overall human development.

Objectives of IHD:

• To analyze and improve the conditions of labour and employment in India.
• To investigate various aspects affecting human development.

About India Employment Report 2024:

• This report is the third in a series published by IHD that addresses labour and employment issues.
• It examines youth employment challenges against the backdrop of evolving economic, educational, and labour market dynamics.
• The report highlights trends observed over the last two decades, including impacts from the COVID-19 pandemic.
• Data analysis is based on National Sample Surveys and Periodic Labour Force Surveys from 2000 to 2022.

Key Highlights of the India Employment Report 2024

• There has been a notable increase in female labour market participation since 2019, particularly in rural areas.
• India's workforce is gradually moving away from agriculture towards non-farm sectors.
• Self-employment and casual work dominate the employment landscape, with around 82% of the workforce in the informal sector.
• While wages for casual labourers have shown modest growth, real wages for regular workers have stagnated or fallen.
• The official statistics do not fully capture the extent of migration in India.
• Future projections indicate that urbanization and migration rates will rise, with an expected migration rate of around 40% by 2030.

Challenges of Youth Employment

• India's demographic profile presents an opportunity, as the working-age population is expected to remain significant for another decade.
• However, the youth population is projected to decline from 27% in 2021 to 23% by 2036.
• Approximately 7-8 million youths enter the labour force annually, presenting potential for demographic dividends.
• Youth participation in the labour market has historically been lower than that of adults, primarily due to increased educational pursuits.
• From 2000 to 2019, youth unemployment surged from 5.7% to 17.5%, though it decreased to 12.1% by 2022.
• Post-lockdown recovery in youth labour market indicators was swift, but much of this growth was in low-quality jobs.

Suggestions

The report recommends five key policy areas for improvement, which include:

• Promoting job creation.
• Enhancing the quality of employment.
• Tackling inequalities in the labour market.
• Strengthening skills training and active labour market policies.
• Bridging knowledge gaps regarding labour market trends and youth employment.

Omnibus SRO Framework

Why in news?

The Reserve Bank of India (RBI) has recently announced the finalisation of the Omnibus Framework for recognising Self-Regulatory Organisations (SRO) for its Regulated Entities (RE). This framework is designed to manage the growing operations of regulated entities and the use of innovative technologies. Additionally, it aims to enhance industry standards related to self-regulation.

What is the Omnibus SRO Framework?

• The Omnibus Framework consists of a detailed set of guidelines and regulations that help in recognising Self-Regulatory Organisations (SROs).
• This framework outlines common objectives, functions, eligibility criteria, and governance standards applicable to all SROs, irrespective of the sector they belong to.
• It specifies the membership criteria and terms that SROs must adhere to in order to gain recognition from the RBI.
• This framework establishes minimum requirements for SROs, encouraging them to develop and implement their best practices.
• The RBI may also impose additional sector-specific conditions when requests for SRO recognition are made, all while adhering to the broader parameters of the framework.
• It promotes a coordinated and integrated regulatory oversight, while still allowing for the issuance of separate guidelines tailored to different sectors.
• The primary aim is to enhance transparency, professionalism, and independence within SROs, which in turn builds confidence in the integrity of the sectors that these organisations oversee.