PIB Summary - 4th September 2025 | PIB (Press Information Bureau) Summary - UPSC PDF Download

Role of Technology in Empowering Annadatas

Introduction

Annadata means “provider of food” and refers to Indian farmers. Agriculture in India employs over 45% of the workforce and contributes around 18% to the GDP. However, it faces challenges like low productivity, climate change, fragmented landholdings, price volatility, and exploitation by middlemen. The solution involves modernizing the agricultural process from “Beej se Bazaar Tak. using technology to achieve higher yields, reduce risks, and improve incomes.

Role of Technology in Indian Agriculture

Artificial Intelligence (AI) and the Internet of Things (IoT)

• Information Access:
  • Kisan e-Mitra: An AI chatbot available in 11 languages that has solved over 95 lakh queries, helping to overcome language and literacy barriers for farmers.
• Crop Protection:
  • NPSS (2024):. national pest surveillance system covering 61 crops and 400 pests, providing pest advisories to minimize losses from pests and climate risks.
• Precision and Smart Farming:
  • AI-Enabled Satellite Mapping: Enhances crop forecasting and farm-level decision-making.
  • IoT Sensors: Monitor soil, water, and weather conditions to optimize input usage.
• Research Application:
  • IIT Ropar’s IoT for Saffron: Focuses on enhancing niche and high-value crops like saffron.
• Impact: Predictive analytics reduce reliance on guesswork, lower costs, and increase sustainability in farming practices.

Space Technology in Agriculture

• Crop Forecasting (FASAL Project):
  • MNCFC utilizes ISRO’s optical and microwave satellite data for monitoring major crops like wheat, rice, sugarcane, pulses, and oilseeds.
  • Introduction of the Crop Health Factor for better early warning of crop stress.
• Risk Management:
  • Real-time drought monitoring through SAC geoportals.
  • Support for PMFBY (Pradhan Mantri Fasal Bima Yojana) through smart sampling, yield estimation, and dispute resolution.
• Decision Making:
  • Krishi-DSS:. decision support system integrating weather, soil, and water data for farmers and policymakers.
• Impact: Transformation of space-based agriculture from macro-forecasting to micro-advisories, providing farmers with specific guidance based on satellite data.

Drone Revolution

• Government Support (SMAM):
  • Subsidies: Ranging from 100% for ICAR/Institutions, 75% for Farmer Producer Organizations (FPOs), to 40-50% for individual farmers and Custom Hiring Centres (CHCs).
  • Special Benefits: Targeted support for Scheduled Castes/Scheduled Tribes (SC/ST), women, and farmers in Northeastern states.
• Applications of Drones in Agriculture:
  • Precision spraying of pesticides and fertilizers.
  • Crop monitoring for health and growth assessment.
  • Soil health mapping to assess and improve soil conditions.
  • Insurance surveys to assess crop damage and facilitate claims.
• Namo Drone Didi (2023-2026):
  • Budget of ₹1261 crore to provide 15,000 drones to Women Self-Help Groups (SHGs) with an 80% subsidy up to ₹8 lakh.
  • Empowerment of women as agricultural entrepreneurs through drone technology.
• SVAMITVA (Land Mapping): Drones have surveyed 3.23 lakh villages (as of July 2025), leading to reduced land disputes and formal ownership documentation, facilitating access to bank credit.
• Impact of Drone Technology: Drones are reducing costs, democratizing access to advanced technology, and empowering women and rural youth in agricultural activities.

JAM Trinity in Agriculture

• Direct Benefit Transfers (DBT): This system eliminates middlemen and corruption by transferring benefits directly to farmers’ accounts. For example, the PM-KISAN scheme’s 20th installment in August 2025 transferred ₹20,500 crore to 9.7 crore farmers.
• Financial Empowerment: The integration of bank accounts, Aadhaar, and mobile numbers (JAM) promotes rural credit inclusion and financial empowerment of farmers.
• Impact on Farmers: DBT provides a predictable income flow, enhancing farmers’ planning capacity and financial stability.

Broader Digital Ecosystem

• Digital Agriculture Mission: This initiative promotes agricultural startups, the use of big data, and digital platforms to enhance agricultural practices and productivity.
• e-NAM (National Agricultural Market): An online trading platform that reduces exploitation based on mandis (market yards) and widens market access for farmers, ensuring better prices and reducing intermediaries.
• Agri-Tech Startups: These startups are innovating in areas such as supply chain management, storage solutions, e-commerce for agricultural products, and credit scoring for small farmers, improving efficiency and access to services.
• Integration of Agricultural Processes: The entire process from seed production to market access, including insurance and credit facilities, is digitized, ensuring seamless and efficient operations.

Strategic Impact of Technology on Annadatas

• Productivity: Smart farming techniques and AI forecasting help in reducing input costs and increasing crop yields, making agriculture more efficient.
• Resilience: Space-based and IoT monitoring systems contribute to making agriculture more resilient to climate change by providing real-time data and analytics.
• Equity: Initiatives like JAM and drone schemes empower smallholder farmers, women, and marginalized groups by providing them with resources and opportunities previously unavailable to them.
• Efficiency: The use of drones, digital marketplaces, and satellite tools helps in cutting down delays and wastage in agricultural processes, enhancing overall efficiency.
• Trust and Transparency: DBT and land mapping initiatives reduce disputes and exploitation by middlemen, building trust among farmers and ensuring fair practices.
• Contribution to National Goals: These technological advancements contribute to national objectives like doubling farmers’ income, promoting self-reliant (Atmanirbhar) Bharat, and achieving Sustainable Development Goals (SDGs) such as Zero Hunger, Gender Equality, Decent Work, and Climate Action.

Conclusion

• Technology as an Equalizer: Innovations in AI, IoT, drones, and space technology are bridging the information and resource gaps in agriculture, empowering small and marginal farmers with advanced tools that were once accessible only to large-scale farmers. 
• Driver of Inclusive Growth: Initiatives like JAM, Namo Drone Didi, and SVAMITVA are ensuring transparency, financial inclusion, and increased participation of women in agriculture, making the sector more equitable and resilient. 
• Future-Ready Agricultural Ecosystem: By digitally integrating the entire agricultural process from “Beej se Bazaar Tak ”, India is building a climate-smart, market-linked, and self-reliant agricultural system that secures the prosperity of farmers and ensures national food security. 

Recommendations of the 56th Meeting of the GST Council held at New Delhi, today

Basics of GST

• GST (Goods and Services Tax) is an indirect tax that replaces various other taxes like excise duty, service tax, VAT, and CST. It was implemented in India on July 1, 2017.
• The GST Council is the top federal body responsible for deciding GST rates and reforms. It is chaired by the Union Finance Minister and includes State Finance Ministers.
• Currently, GST has a 4-tier rate system with rates of 5%, 12%, 18%, and 28%, along with a cess on demerit goods.
• Challenges in GST:
• Complex Multi-Rate Structure: The existence of multiple tax rates complicates compliance and administration.
• Inverted Duty Structure: This occurs when the tax on inputs is higher than the tax on finished goods, leading to revenue loss for businesses.
• Pending Disputes: The lack of an appellate tribunal has resulted in unresolved disputes.
• Compliance Burden on Small Businesses: Small businesses face difficulties in meeting compliance requirements due to the complexity of GST.
• Affordability of Essentials: There are concerns about the impact of GST on the affordability of essential services like healthcare, insurance, and medicines.

Rate Rationalisation

• The proposed change from a 4-tiered GST structure to a simpler system with 2 rates plus a demerit slab aims to streamline compliance and reduce disputes.
• The Merit Rate of 5% would cover essential items such as food, agricultural goods, and labour-intensive products.
• The Standard Rate of 18% would apply to the majority of goods and services.
• The Demerit Rate of 40% would target sin goods like pan masala, gutkha, cigarettes, and tobacco products.
• This rationalisation is expected to simplify compliance, reduce disputes, and improve consumer trust in the GST system.

Relief to Common Man

• Insurance: GST exemption on all life and health insurance policies. Healthcare: GST NIL on 33 lifesaving drugs, NIL on 3 cancer/rare disease medicines.  Medicines: 12% → 5%; Medical apparatus & diagnostic kits: 18/12% → 5%. Household goods: Reduction to 5% on soaps, shampoos, toothpaste, bicycles, tableware. Food: UHT milk, paneer, Indian breads → NIL. Packaged food (noodles, chocolates, coffee, butter, ghee, cornflakes) → 5%. 

  Boost to Key Sectors

  • Agriculture: Reduction in GST from 12% to 5% on machinery and tractors.
  • Labour-Intensive Industries: GST set at 5% for handicrafts, granite, and leather goods.
  • Automobiles: Elimination of inverted duty structure with uniform 18% rate for auto parts. Small Cars and Motorcycles: GST reduced from 28% to 18% for vehicles ≤350cc. Buses, Trucks, Ambulances, and 3-Wheelers: GST set at 18%.
  • Cement: GST reduced from 28% to 18% to support massive infrastructure push.
  • Textiles: Correction of inverted duty with fibre GST reduced from 18% to 5% and yarn from 12% to 5%.
  • Fertilizers: Reduction in GST on acids (sulphuric, nitric, ammonia) from 18% to 5%.
  • Renewable Energy: Reduction in GST on devices and parts from 12% to 5%.
  • Hospitality: GST set at 5% for hotel accommodation priced ≤ ₹7,500 per day.
  • Well-Being Services: GST set at 5% for gyms, salons, and yoga centres.

  Institutional Reforms

  • Operationalisation of GST Appellate Tribunal (GSTAT): Appeals are expected to be processed by September 2025, with hearings commencing by December 2025. The Principal Bench will serve as the National Appellate Authority for Advance Rulings. This initiative aims to reduce the backlog of litigation and enhance taxpayer trust in the system.

  Trade Facilitation

  • Refunds: Introduce 90% risk-based provisional refunds for exports (zero-rated supplies) and for inverted duty claims, starting from November 2025. Remove the threshold for small exporters using courier or postal modes for exports.
  • Simplified GST Registration: Auto-registration within 3 days for low-risk businesses with monthly liabilities under ₹2.5 lakh, benefiting approximately 96% of new applicants.
  • E-commerce Sellers: Simplified GST processes for small suppliers operating across states.
  • Amendments for Intermediary Services: Tax export services at the location of the recipient to enable export benefits.

  Law & Procedure Reforms

  • Post-sale Discounts: Simplify the eligibility criteria for post-sale discounts and clarify the ITC reversal mechanism.
  • Pan Masala, Gutkha, Tobacco: Base GST on Retail Sale Price (RSP) instead of transaction value to curb evasion.
  • Lottery Valuation Rules: Align with revised GST guidelines to ensure consistency.

  Implementation Timeline

  • 22 Sept 2025: New GST rates on goods & services (except tobacco/sin goods).
  • 1 Nov 2025: Refund reforms + simplified registration.
  • Till compensation cess loan repayment: No rate cut on sin goods (pan masala, cigarettes, gutkha).

  Broader Implications

  • For Citizens: Lower prices on essentials, healthcare, and insurance, leading to higher affordability and enhanced social security. 
  • For Economy: Boost to agriculture, MSMEs, textiles, construction, and renewables, acting as a growth multiplier. 
  • For Business Climate: Simplified structure, uniform auto-parts rate, and corrected duty inversions, improving the ease of doing business. 
  • For Governance: GSTAT and refund reforms reducing litigation and delays, strengthening trust in the GST system. 
  • For Fiscal Health: Expected compensation for short-term revenue dips through broadened base and improved compliance efficiency. 

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