X-FACTOR NOTES FOR UPSC MAINS 2025

Table of Contents
1. Water Resources  3

2. Mineral Resources: 15

3. Energy Resources 26

4. Population and Migration In India 37

5. Settlements and Urbanization 54

6. Regional Planning and Human development  64

7. Transport, Communication and Trade 71

8. Primary, Secondary and Tertiary sector Industries  84

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CHAPTER 1

Water Resources

PYQ’s
1. The groundwater potential of the Gangetic valley is on a serious decline. How may it affect the food security of India?
2024
2. What are the environmental implications of the reclamation of the water bodies into urban land use? Explain with
examples. 2021
3. The interlinking of rivers can provide viable solutions to the multi-dimensional inter-related problems of droughts,
floods and interrupted navigation. Critically examine. 2020
4. How will the melting of Himalayan glaciers have a far-reaching impact on the water resources of India? 2020
5. What is water stress? How and why does it differ regionally in India? 2019
6. “The ideal solution to depleting groundwater resources in India is a water harvesting system.” How can it be made
effective in urban areas? 2018
7. What is water use efficiency? Describe the role of micro-irrigation in increasing their-use efficiency. 2016
8. In what way do micro-watershed Development projects help in water conservation in drought-prone and semi- arid
regions of India? 2015
9. India is well endowed with fresh water resources. Critically examine why it still suffers from water scarcity. 2015
10. Bring out the relationship between the shrinking Himalayan glaciers and the symptoms of climate change in the Indian
subcontinent.

“Anyone who can solve the problems of water will be worthy of two Nobel Prizes — one for peace and one for science.”
— John F. Kennedy

“The world is facing a water crisis that will challenge our ability to feed growing populations.”
—Lester R. Brown (Founder, Earth Policy Institute)

“We need a paradigm shift from supply-side to demand-side water management.”

—Dr. Mihir Shah (Former Member, Planning Commission of India)

“Access to safe water is a fundamental human need and, therefore, a basic human right.”
—Kofi Annan (Former UN Secretary-General)

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Data:
• India has 18% of the world’s population but only 4% of global freshwater resources.
• Annual rainfall averages 4,000 billion cubic meters (BCM), mostly from the monsoon.
• Per capita water availability ranks 133rd globally.
• India is the second-largest consumer of water, using 20.1% of global freshwater.
• Usable annual water resources are estimated at 1,121 BCM.
• Water demand is projected to reach 1,093 BCM by 2025 and 1,447 BCM by 2050.
• As per the Falkenmark Water Index, water availability below 1,700 m³ per capita indicates scarcity.
• Currently, 76% of India’s population lives under water-scarce conditions.

Water Scarcity Water Stress Water Risk

“Water scarcity” refers to the volu- “Water stress” refers to the ability, or lack “Water risk” refers to the possibility of an
metric abundance, or lack thereof, of thereof, to meet human and ecological entity experiencing a water-related chal-
freshwater resources. ”Scarcity” is demand for fresh water. Compared to lenge (Eg- water scarcity, water stress,
human-driven; it is a function of the scarcity, “water stress” is a more inclu- flooding, infrastructure decay, drought).
volume of human water consumption sive and broader concept. It considers The extent of risk is a function of the
relative to the volume of water resourc- several physical aspects related to likelihood of a specific challenge occur-
es in a given area. water resources, including water avail- ring and the severity of the challenge’s
ability, water quality, and the accessi- impact.
bility of water (i.e., whether people are
able to make use of physically-available
water supplies), which is often a function
of the sufficiency of infrastructure and
the affordability of water, among other
things.

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Reasons of Water Scarcity in India:

1. Demand-Supply Imbalance:
a. India’s water demand is projected to be twice the available
supply by 2030 (NITI Aayog).
b. A report by the NITI Aayog stated that around 2 lakh people
die in India every year due to inadequate water supply.
2. Over-Extraction and Resource Mismanagement:
a. India extracts ~25% of the world’s groundwater (World
Bank), largely for irrigation.
b. Unplanned urbanisation, loss of green cover, and destruction
of traditional water bodies (e.g. Bengaluru’s lakes reduced
from 262 to 81) have diminished groundwater recharge.
c. Around 78% of freshwater is used in agriculture, with
crops like rice and wheat consuming excessive amounts —
65% of rice and 74% of wheat areas face extreme water
stress.
3. Pollution and Environmental Neglect:
a. In a report from 2022, the Central Pollution Control
Board (CPCB) identified 311 polluted river stretches
across 279 rivers in India.
b. In India, nearly one third of the natural wetlands have
been lost in the last four decades due to urbanisation,
agricultural expansion and pollution.
4. Climate Change and Environmental Variability:
a. Studies by the Indian Institute of Tropical Meteorology
(IITM) show a decline in average monsoon rainfall by 10% since the 1950s.
b. A study published in Nature found that the volume of water loss (evaporation volume) of India’s natural lakes
and reservoirs (artificial lakes) increased at a rate of 5.9% per decade during 1985-2018.
5. Infrastructure and Governance Challenges:
a. Aging Infrastructure: Water distribution systems are outdated and inefficient. For example, Mumbai loses 700
million liters/day due to leaks.
b. Low Wastewater Recycling: India treats and recycles only ~30% of its wastewater, compared to 90% in Israel.
c. Fragmented Water Governance: Different bodies such as CGWB, CWC and local bodies do overlapping functions.
d. The legal framework governing water belongs to the 19th-century British common law, which legitimizes and
perpetuates inequity in access to water by giving unlimited water withdrawal powers to landowners.
6. Societal Awareness and Behavior
a. Traditional practices like rainwater harvesting, once central to Indian water systems, are neglected in urban plan-
ning.
b. Lack of public awareness and the perception of water as a free resource

Alarming Impacts:
1. Economic Impact:
a. According to the World Bank report (2016) titled “Climate Change, Water and the Economy”, water scarcity
could reduce India’s GDP by 6% by 2050.
b. Industrial Disruption: In Chennai (2019), the IT and hospitality sectors slowed down due to the “Day Zero” wa-
ter crisis.
c. Increased Water Management Costs: Bangalore spends over ₹100 crore annually on water tankers during summers.
d. Energy Sector Impact: Thermal power plants, responsible for 60% of India’s electricity, rely on large quantities of
water for cooling. In 2016, 11 thermal plants were shut down due to lack of water (CSE Report).
2. Social Impact:
a. It is estimated that Indian women spend 150 million workdays each year fetching water.
b. In drought-hit regions like Marathwada, the practice of “Water Wives” reflects how water scarcity deepens
gender inequality and rural hardships.
c. Urban Inequality: Disparities in access — Eg- Delhi’s posh colonies receive 5–10 times more water per capita
than slums. Eg- In Mumbai, while Malabar Hill gets 300+ LPCD, Dharavi receives <45 LPCD.
3. Agricultural and Food Security Impact:
a. According to the World Economic Forum (2024), India’s economy could suffer a 16% drop in agricultural output by
2030, which would translate to a 2.8% GDP loss.
b. Over 50% of India’s agriculture depends on monsoons, making it vulnerable to erratic rainfall.
4. Ecological and Environmental Impact:
a. Shrinking wetlands, drying rivers, and contaminated lakes threaten aquatic and terrestrial biodiversity. Eg- Sambhar
Lake (Rajasthan) — India’s largest inland saltwater lake — has seen massive flamingo deaths due to drying and
pollution.

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b. The endangered Ganges River Dolphin faces habitat loss due to declining river flows.
5. Political and Federal Impact:
a. Scarcity exacerbates long-standing river water conflicts. E.g. Cauvery River dispute (Karnataka vs Tamil Nadu),
Krishna River (Andhra Pradesh, Karnataka, Telangana, Maharashtra), Mahadayi River (Goa vs Karnataka)
b. Power dynamics between upper and lower riparian states cause resentment and weaken trust in water-sharing
mechanisms. E.g. The Mullaperiyar dam issue is a long-standing dispute between Kerala and Tamil Nadu concern-
ing the safety and operational control of the dam.
6. International and Strategic Impact:
a. India shares 54 rivers with Bangladesh, and several with Nepal, Pakistan, and China.
b. China’s dam-building activities on the Brahmaputra (Yarlung Tsangpo) threaten flows to Northeast India, espe-
cially during dry seasons.

Regional Variation of Water Stress in India

Water stress in India differs across states due to a complex interplay of climatic, geographic, socioeconomic, and institutional factors.
1. Climatic and Rainfall Variability:
a. Western and Northwestern India (Eg- Rajasthan, Gujarat) receive <500 mm of rainfall annually.
b. In contrast, Northeastern states like Meghalaya receive >2,500 mm, causing stark spatial disparities.
c. Eg- Jaisalmer (Rajasthan) is water-scarce, while Cherrapunji (Meghalaya) suffers from poor accessibility despite
abundance.
2. Geographic and Hydrogeological Factors:
a. Peninsular India has hard rock aquifers, which limit groundwater recharge.
b. Indo-Gangetic plains (Punjab, UP, Bihar) have deep alluvial aquifers, enabling high groundwater availability but
also leading to over-extraction.
3. Over Extraction and Agricultural Demands:
a. Punjab and Haryana, despite good aquifers, face water stress due to water-intensive cropping patterns like paddy
cultivation.
b. Punjab’s groundwater level has declined in over 80% of blocks (CGWB, 2023).
4. Urban-Rural Divide:
a. Metro cities like Delhi, Chennai, and Bengaluru suffer acute water stress due to rising urban populations, infra-
structure overload, and over-dependence on distant water sources.
b. Chennai faced a “Day Zero” crisis in 2019, relying entirely on tankers and desalination.
5. Policy and Institutional Gaps:
a. States with effective water governance and community participation (Eg- Maharashtra’s Pani Panchayats) man-
age stress better.
b. Others lack Integrated Water Resource Management (IWRM) frameworks.
6. Groundwater Depletion and Quality:
a. In Eastern India (Eg- West Bengal, Bihar), despite water availability, arsenic contamination renders groundwater
unusable.
b. Fluoride and salinity affect water quality in parts of Gujarat and Rajasthan.

The crisis of availability of freshwater resources in the world:

Though 71% of Earth’s surface is covered by water, only 2.5% is freshwater, and of that, merely 0.3% is accessible for human use. This
crisis is two-fold: it is not just about the availability of water, but also about its equitable accessibility.

Reasons of crisis of Availability of Freshwater Resources

Availability refers to the total quantum of freshwater that exists and can be sustainably extracted for human, agricultural, and indus-
trial needs.
1. Over-extraction of Groundwater: India is the largest extractor of groundwater globally, using over 25% of the world’s total.
Nearly 60% of India’s districts have seen a decline in groundwater levels in the past decade (CWC, 2023).
2. Climate Change and Variability in Precipitation: The IPCC reports that warming has altered the hydrological cycle, causing
unpredictable monsoons, prolonged droughts, and flash floods. Eg- The Horn of Africa has faced five consecutive failed
rainy seasons (2019–2022).
3. Pollution of Surface Water Sources: In India, nearly 70% of surface water is contaminated (NITI Aayog, CWMI report).
Rivers like the Yamuna and Ganga have dangerously high levels of BOD and pathogenic content.
4. Melting of Glaciers: Himalayan glaciers, the source of major Asian rivers (Ganges, Indus, Brahmaputra), are retreating at a
rate of 20 meters per year. This will affect 1.9 billion people dependent on glacier-fed rivers (World Bank).
5. Virtual Water Trade: Countries export water-intensive crops (Eg- India’s rice exports consume 10 trillion liters of water
annually). This creates “water stress” even in water-rich regions.
6. Mismanagement and Inefficient Use: Agriculture uses about 80% of freshwater in India, but irrigation efficiency remains
at 30–40% due to flood irrigation.

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Reasons of crisis of Accessibility to Freshwater Resources:

Accessibility refers to the extent to which available water can be reliably and affordably reached by people, particularly the marginal-
ized.
1. Infrastructure Deficit: In Sub-Saharan Africa, only 24% of rural population has access to piped water (UNICEF, 2024).
India’s only 21.4% of households have piped drinking water according to the National Sample Survey Office’s (NSSO) 76th
round.
2. Urban-Rural Divide: Urban areas get preference in water allocation (Eg- Delhi gets more per capita water than drought-hit
Bundelkhand). Slums and peri-urban areas often lack piped water, relying on tankers and contaminated sources.
3. Socioeconomic Barriers: In many regions, caste, class, and gender dictate water access. Eg- Dalits in parts of Maharashtra
and MP are denied access to village wells (as reported by NCRB-linked studies).
4. Water Privatization: In Chile and parts of Africa, water markets have led to concentration of access in private hands, pricing
out the poor. In India, cities like Nagpur and Bengaluru have seen debates over PPP in water delivery.
5. Conflict and Displacement: Armed conflict in places like Syria and Gaza has damaged water infrastructure. In India, in-
ter-state river disputes (Eg- Cauvery) cause inequitable distribution among regions.
6. Seasonal & Geographic Variability: North-east India receives >2000 mm rainfall annually; Rajasthan gets <300 mm —
yet infrastructure does not compensate for this skewed natural availability.

Groundwater resources in India:

As per National Compilation on Dynamic Ground Water Resources of India, 2024, India’s total annual groundwater recharge stands
at 446.90 BCM, with 406.19 BCM deemed extractable, and an annual extraction of 245.64 BCM, highlighting the urgent need for
sustainable utilisation and conservation strategies.

Positive Developments in Groundwater Status – 2024 Assessment:

● Increase in Total Annual Groundwater Recharge: Rise of 15 BCM in 2024 compared to the 2017 assessment.
● Decline in Groundwater Extraction: Reduced by 3 BCM since 2017, indicating improved usage practices.
● Improved Recharge from Tanks, Ponds, and Water Control Systems (WCS): Increased by 0.39 BCM from 2023 to
2024. Overall increase of 11.36 BCM from 2017 (13.98 BCM) to 2024 (25.34 BCM).
● Improvement in Safe Category Assessment Units: Safe units increased from 62.6% in 2017 to 73.4% in 2024.
● Reduction in Over-Exploited Units: Declined from 17.24% in 2017 to 11.13% in 2024.

Reasons for depletion of groundwater resources in india:

1. Agricultural Over-Exploitation: India extracts ~25% of the world’s groundwater (World Bank), largely for irrigation.
2. Energy Subsidies: Power subsidies in Punjab and Maharashtra encourage 24x7 pumping, regardless of aquifer levels.
3. MSP Distortion: According to India Water Portal, output subsidy policy contributed to at least 50 percent of the local
decline in the groundwater table in Punjab.
4. Weak Regulatory Framework: Despite being a shared resource, groundwater is treated as private property under the
Indian Easements Act, 1882. State-level regulations (like Maharashtra Groundwater Act) exist but are poorly enforced.
5. Rural and Urban Demand: 85% of the rural and 50% of the urban population in India is dependent on groundwater for
fulfilling their needs.
6. Encroachment of Recharge Zones: Bengaluru’s rapid urbanisation has led to a drastic reduction in green spaces and
waterbodies, with built-up areas increasing from 8% in 1973 to 93% in 2020
7. Climate Change and Erratic Rainfall: The southwest monsoon, which contributes 60% of India’s groundwater recharge,
has become unpredictable, with 2023 witnessing a cumulative rainfall shortfall of 5.6% and over 200 districts experiencing
deficient precipitation.

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Water Resource Management:

Water Resources Management (WRM) is the process of planning, devel-
oping, and managing water resources, in terms of both water quantity
and quality, across all water uses. It includes the institutions, infrastruc-
ture, incentives, and information systems that support and guide
water management.

Government Steps for Water Re-

source Management
1. Jal Shakti Ministry: Formed in 2019 by integrating earlier two
water-related ministries for water management in the country.
2. Swajal Scheme: It is designed as a demand-driven and com-
munity-centred program to provide sustainable access to
drinking water to people in rural areas. It encourages partner-
ship between village communities, NGOs and the government
as the facilitator.
3. Jal Jeevan Mission (2019): To provide piped potable water to
every rural household by 2024. In the past year, the Jal Jeevan
Mission.
4. Bureau of Water Use Efficiency (BWUE): Set up under the Na-
tional Water Mission in 2022, the BWUE promotes water use
efficiency across sectors such as irrigation, drinking water
supply, power generation, and industries.
5. Mission Amrit Sarovar (2022): This mission aims to create
or rejuvenate 75 Amrit Sarovars in every district to enhance
water harvesting and conservation.
6. National Aquifer Mapping (NAQUIM): Completed by the
Central Ground Water Board (CGWB) for over 25 lakh sq. km,
this initiative supports groundwater recharge and conservation
planning.
7. Interlinking of Rivers project: To ensure greater equity in the distribution of water by enhancing the availability of water in
drought-prone and rain-fed areas.
8. National Hydrology Project (2016): To improve the extent, quality, and accessibility of water resources information and
to strengthen the capacity of targeted water resources management institutions in India.
9. Atal Bhujal Yojana (ABHY): Launched in 2019 to improve the management of groundwater resources in selected states.
10. PM Krishi Sinchayi Yojana: To improve farm productivity and ensure better utilization of the resources in the country i.e., Per
Drop, More Crop.
11. National Water Mission: To ensure integrated water resource management helping to conserve water, minimize wastage and
ensure more equitable distribution both across and within states.
12. AMRUT 2.0: To ensure complete sewage and septage management in 500 AMRUT cities and establish the “selfreliance”
and “water security” of those cities.

Measures for effective water management in

india:
1. Water-Efficient Agriculture:
a. Drip and Micro-Irrigation: Reduce water use in agriculture, which accounts for ~89% of groundwater extraction.
b. Policy Integration: Link Pradhan Mantri Krishi Sinchai Yojana (PMKSY) with Atal Bhujal Yojana to promote
sustainable irrigation in groundwater-stressed regions.
2. Crop Diversification:
a. Shift from paddy and sugarcane to millets, pulses, and oilseeds, especially in arid regions.
b. Policy Incentives: Provide higher MSPs for less water-intensive crops under National Food Security Mission
(NFSM) and integrate with crop insurance schemes. Eg- Punjab and Haryana can be encouraged to replace paddy
with bajra and moong.
3. Energy Subsidy Reforms:
a. Metered Power Supply: Link electricity usage to groundwater pumping.

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b. Incentive-Based Subsidies: Provide power subsidies conditional on adoption of water-saving techniques. Eg- Guja-
rat’s Jyotigram Yojana separated feeders for agriculture and households, helping monitor and manage farm power
use.
4. Rainwater Harvesting and Aquifer Recharge:
a. Scaling up RWH structures in both rural and urban areas.
b. Link MGNREGA with groundwater recharge and watershed development. Eg- Tamil Nadu’s widespread rainwater
harvesting revival has improved groundwater levels significantly.
5. Managed Aquifer Recharge (MAR) with Solar Desalination:
a. Combined MAR and desalination can recharge saline or contaminated aquifers, especially in coastal and arid
zones. Eg- In Kutch, Gujarat, solar-powered MAR can combat salinity and groundwater scarcity.
6. Use of Biochar in Recharge Systems:
a. Biochar (from agricultural residue) acts as a natural filter to remove nitrates and heavy metals during aquifer re-
charge. Eg- Introduction in Punjab’s paddy belts to reduce nitrate contamination from fertilizer runoff.
7. Aquifer Mapping Using AI and IoT:
a. AI and IoT-enabled sensors can track water levels, quality, and recharge rates in real time. Deploy predictive
analytics for targeted intervention. Eg- Vidarbha region of Maharashtra could benefit from dynamic monitoring of
stressed aquifers.
8. Strengthening Monitoring Infrastructure:
a. Expand real-time groundwater monitoring stations. Integrate with India Water Resources Information System
(WRIS). Eg- Telangana’s Mission Kakatiya uses local data to restore tanks and monitor aquifer health.
9. Urban Water Management:
a. Promote wastewater recycling for non-potable uses (industrial cooling, landscaping, etc.).
b. Integrate with AMRUT 2.0 for decentralized treatment and reuse. Eg- BWSSB, Bengaluru plans to reuse 1 crore
MLD sewage to reduce dependence on the Cauvery River by 50%.
10. Community Participation and Awareness:
a. Behavioral change campaigns, training, and school awareness drives.
b. Link Jal Shakti Abhiyan with self-help groups (SHGs), Panchayats, and NGOs. Eg- Water budgeting programs in
Maharashtra villages (like Hiware Bazar) improved participatory groundwater management.
11. Involving Private Sector and CSR: Attract CSR funds for water conservation, recharge pits, and monitoring. Encourage
public-private partnerships (PPP) in groundwater recharge. Eg- Corporate-supported recharge wells in Rajasthan’s Alwar
district have improved water access.
12. Climate-Resilient Groundwater Banking:
a. Create groundwater banks in wet years for use in dry periods. Link climate-resilient agriculture under National
Adaptation Fund for Climate Change (NAFCC) with recharge zones and storage.
13. Phytoremediation for Contaminated Aquifers:
a. Use of plants like vetiver or water hyacinth to absorb heavy metals and clean polluted water. Eg- Kanpur’s ground-
water, polluted by tannery waste, can be treated using phytoremediation systems.

International Best Practices:

1. Singapore uses dynamic pricing and public education campaigns to reduce consumption.
2. Israel uses drip irrigation, fertigation, and soil-moisture sensors to optimize water use and enhance yields.
3. California’s Sustainable Groundwater Management Act (SGMA) mandates local groundwater sustainability plans
with real-time monitoring and extraction limits.
4. Spain & Netherlands use Managed Aquifer Recharge (MAR) to store excess rainfall and treated wastewater under-
ground.
5. Australia has formal water markets that allow farmers to buy/sell water entitlements, promoting efficient allocation.

Modern water management practices:

1. Solar Desalination - uses solar energy to evaporate and condense seawater, producing freshwater. This process mimics
the natural water cycle, where the sun’s energy evaporates water, which is then condensed into clean water.
a. Merits: Environmentally friendly, using renewable energy and Suitable for remote, off-grid locations.
b. Demerits: Limited water output compared to conventional desalination plants and Initial investment costs for solar
infrastructure are high.
2. Atmospheric Water Generation (AWG) - extracts water from the moisture in the air through condensation. Devices can
be designed to capture water by cooling the air or by using desiccants that absorb moisture.
a. Merits: Produces clean drinking water from the atmosphere, reducing dependence on surface or groundwater
and Can be used in off-grid locations with solar-powered AWG units.
b. Demerits: Limited output in areas with low humidity and High energy demand for cooling and dehumidification
processes.
3. Fog Harvesting - capturing water droplets from fog using large mesh nets. The droplets condense on the mesh and are
collected in containers for use.

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a. Merits: Provides water in arid, foggy regions where other sources are limited and Low-tech and low-energy solu-
tion, relatively inexpensive to set up.
b. Demerits: Only viable in regions with frequent fog and Limited water output, making it impractical for large-scale
use.

Traditional water management practices:

Water Use Efficiency:

It is defined as the amount of carbon assimilated as biomass or grain produced per unit of water used by the crop. It is about care-
ful management of water supply sources, use of water serving technologies, reduction of excessive demand and other actions.

Methods to increase water use efficiency:

Micro-Irrigation:
Micro irrigation is a water-efficient technology where water is delivered directly to the plant’s root zone through low-pressure
systems like drips, sprinklers, or bubblers. This method ensures minimal water wastage by controlling the water’s flow rate and tim-
ing, allowing precise application directly where it’s needed most.

Status:
● As of 2022-23, out of India’s total irrigated area of 73 million hectares, only 8 million hectares were equipped with
micro irrigation systems.
● States like Karnataka, Tamil Nadu, Gujarat, Maharashtra, and Andhra Pradesh are leading in its adoption.
● As of Dec 2024, India has an average penetration of micro irrigation—22%—substantially lower than many other
nations.
● Over the next five years, the government wants to cover 100 lakh acres of land with micro-irrigation.

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Major challenges faced by Indian irrigation system in recent

times:
1. Groundwater exploitation: According to CGWA, India extracts nearly 25% of global groundwater annually. Punjab and
Haryana groundwater tables deplete by 33% in the last two decades.
2. Inefficient Water Use: Due to electricity subsidies and Traditional methods like flood irrigation, still used in 85% of irrigated
areas.
3. Poor Infrastructure: Canal systems, which cover around 40% of irrigated land, suffer from leakages and evaporation
losses, leading to about 30-40% wastage (Central Water Commission).
4. Unequal Distribution: Punjab, with 98% irrigation coverage, contrasts with underdeveloped infrastructure in eastern and
southern states. (NITI Aayog).
5. Low Adoption of Modern Techniques: As per ICAR, only 6% of India’s irrigated land uses drip or sprinkler systems, mainly
due to high initial costs and lack of awareness.

Benefits of Micro-Irrigation in India

1. Increased Water Use Efficiency: Micro-irrigation minimizes conveyance, runoff, evaporation, seepage, and deep percola-
tion losses. Results in water use efficiency of 50–90%, ensuring optimal usage of scarce water resources.
2. Improved Energy Efficiency: Operates at low pressure and flow rates, reducing overall energy demand. Enables use of so-
lar or diesel pumps, even from small water sources like wells and tanks.Energy savings up to 30.5% compared to conven-
tional irrigation methods.
3. Fertilizer Use Efficiency: Allows direct application of water-soluble fertilizers at root zones (fertigation). Results in fertilizer
savings up to 28.5%. Improves nutrient use efficiency and reduces environmental contamination.
4. Productivity Enhancement: Estimated yield increases up to 42.4% for fruits and up to 52.7% for vegetables
5. Reduced Irrigation Costs: Lowers labor requirements for irrigation, weeding, and fertilizer application. Leads to irrigation
cost savings of up to 31.9%.
6. Increase in Farmers’ Income: Average income increase of up to 42% observed among micro-irrigation adopters.
7. Bringing Degraded Lands Under Cultivation: A national-level survey found that farmers brought 519.43 hectares of
degraded land under cultivation using this technique.
8. Success story of Israel: a desert nation with water scarcity has become a water surplus nation because drip irrigation
saves almost three-fourths of the water used for irrigation done through open canals.

Measures taken by the government for efficient irrigation

management:
1. National Mission for Sustainable Agriculture (NMSA): to promote sustainable agriculture practices, enhance water use
efficiency, and encourage adoption of new irrigation technologies.
2. Pradhan Mantri Krishi Sinchai Yojana (PMKSY): aims to improve irrigation coverage, enhance water efficiency, and promote
modern irrigation techniques such as drip and sprinkler systems.
3. Command Area Development & Water Management (CADWM): Improves irrigation efficiency by repairing and upgrading
canal systems across 17 million hectares (CWC).
4. Atal Bhujal Yojana: With a budget of ₹6,000 crores, this scheme focuses on sustainable groundwater management in
stressed regions, aiming to reduce over-extraction in 78 districts.
5. Jal Shakti Abhiyan: A water conservation campaign targeting 256 water-stressed districts, focusing on rainwater harvesting
and recharging groundwater (NITI Aayog).
6. State Led initiatives:
a. Mission Kakatiya(Telangana)-for rejuvenation of tanks and micro-irrigation sources.
b. Jalyukt Shivar Abhiyan(Maharashtra)-promotes water conservation and management by constructing farm
ponds, percolation tanks, and check dams.
c. Krishi Bhagya(Karnataka)-promotes the adoption of micro-irrigation systems, rainwater harvesting, etc.

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Watershed development and management:

A watershed is a geo-hydrological
land unit that gathers water and
empties it through a central loca-
tion. The main goal of watershed
management is to store and replenish
groundwater using a variety of tech-
niques, including percolation tanks,
recharge wells, and artificial ponds.

Watershed management is an
adaptive, comprehensive, integrat-
ed multi-resource management
planning process that seeks to balance
healthy ecological, economic, and
cultural/social conditions within a
watershed.

Watershed management serves to

integrate planning for land and wa-
ter; it takes into account both ground
and surface water flow, recognizing
and planning for the interaction of
water, plants, animals and human land
use found within the physical boundar-
ies of a watershed.

Significance of Water-
shed
Management
1. Water Conservation
and Recharge: Enhances
groundwater recharge, re-
duces runoff and soil erosion.
Increased water table in
over 70% of project areas as
per Ministry of Rural Develop-
ment assessments.
2. Agricultural Productivity:
Promotes moisture reten-
tion, supporting multiple
cropping and improved
yields. Eg- NABARD reported
20–60% increase in crop
yields in treated areas.
3. Livelihood Generation:
Promotes agri-allied activities like horticulture, fodder cultivation, and agroforestry. Encourages women’s SHGs, animal
husbandry, and wage employment via asset creation.
4. Soil Health and Biodiversity: Reduces soil erosion and degradation; promotes native vegetation and biodiversity.
5. Climate Resilience: Helps combat droughts and erratic monsoons through decentralized water conservation. Builds resil-
ience for small and marginal farmers in rain-fed areas.

Government initiatives for watershed management:

1. Integrated Watershed Development Programme (IWMP): Launched in 2009, now a part of Pradhan Mantri Krishi Sinchay-
ee Yojana (PMKSY) (since 2015). Focus on rain-fed area development, water harvesting, soil and moisture conservation.
2. Neeranchal National Watershed Project (2016–2021): Funded by World Bank and GoI to strengthen institutional capaci-
ty, monitoring, and knowledge sharing in watershed programs.
3. Haryali is a watershed development project sponsored by the Central Government which aims at enabling the rural popula-
tion to conserve water for drinking, irrigation, fisheries and afforestation.

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Interlinking of Rivers:

NRLP, formerly known as the National Perspective Plan, proposes to connect 14 Himalayan and 16 peninsular rivers with 30
canals and 3,000 reservoirs to form a gigantic South Asian Water Grid. The initial plan to interlink India’s rivers came in 1858 from a
British irrigation engineer, Sir Arthur Thomas Cotton.

Benefits:
1. Hydropower potential: It would add approx. 34,000 MW of hydropower to the energy pool of the nation addressing the
electricity woes of industrial, agricultural, and rural households.
2. Addressing the Hydrological Imbalance of India- India has a large-scale hydrological imbalance with an effective rainfall
period of 28 to 29 days. Interlinking would enable the transfer of water from flood-prone regions to drought-prone regions.
3. Aiding irrigation potential- The interlinking of rivers has the potential to irrigate around 35 million hectares of land in the
water-scarce western peninsula.

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4. Drinking water supply- The project envisages a supply of clean drinking water amounting to 90 billion cubic meter. It can
help in the resolution of the issue of drinking water scarcity in India.
5. Boost to industries- Interlinking of rivers has the potential to provide around 64.8 billion cubic meter of water for industri-
al use.
6. Sustainable development: It would help address the critical groundwater situation in the country by utilizing surface
water and preventing flow of freshwater into the sea.

Challenges:
1. Environmental challenges: It may result in evaporation losses, water logging & salinity, and land submergence. For eg:
Ken Betwa link may imperil areas of Panna National Park.
2. Federal aspects: Water being a state subject, it is difficult to resolve issues of water sharing between states. For eg,
Kerala and Tamil Nadu.
3. Economic Concerns: High implementation costs (Eg- Ken-Betwa at ₹44,605 crore) raising questions about viability.
4. Displacement of People/Social Cost – Interlinking of Rivers in India is a very costly project and also rehabilitation of dis-
placed people would hamper more on the budget.
5. Impact of the Climate change- Reports point out that Climate change will cause a meltdown of 1/3rd of the Hindu Kush
Region’s glaciers by 2100. So, the Himalayan rivers might not have ‘surplus water’ for a long time.

Way Ahead For Water Resource Management

1. Arth Ganga Model: To connect people with the river through the economy.
a. It aims to provide at least 3% of the GDP from within the Ganga Basin.
b. Interventions made as part of the Arth Ganga project are in line with India’s commitments to the UN sustainable
development goals.
2. India’s Water Vision: Aims to provide all Indians with access to clean, safe water. The initiative also emphasises water re-
source preservation and the advancement of sustainable water practices.
3. River Cities Alliance: It provides the member cities with a platform to discuss and exchange information on aspects that
are vital for sustainable management of urban rivers .
4. Decentralized Water Management: There is a need to drive a decentralized, community-driven approach to rural water
supply and sanitation like the Uttarakhand’s Swajal project.
5. Promoting decentralized wastewater treatment systems at the community or building level. These compact systems treat
wastewater for reuse in non-potable applications, reducing the burden on centralized treatment plants and saving freshwater.
6. Public-PrivatePartnerships (PPPs)forWater Infrastructure:Encouraging public-private partnerships for developing and
maintaining water infrastructure projects

Mihir Shah Committee Recommendations:

1. One Water Approach for integrated water management, merging CGWB and CWC into a National Water Commis-
sion (NWC) for better governance, and strengthening decentralized water management.
2. Advocated breaking groundwater-surface water silos. Encouraged community involvement and decentralised
decision-making.
3. Shift focus from purely economic valuation of water to include social, ecological, and cultural values in water con-
servation and management strategies.
4. Simplify and rationalise the bureaucratic setup of the existing bodies by addressing issues like numerous over-
lapping designations and lack of accountability.

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CHAPTER 2

Mineral Resources:

Previous Year Questions:

1. Discuss the natural resource potentials of ‘Deccan Trap’.
2. How does India see its place in the economic space of rising natural resource rich Africa?
3. Comment on the resource potentials of the long coastline of India and highlight the status of natural hazard preparedness in
these areas.

Classification of minerals:
1. Metallic Minerals: The
provisional value of metallic
minerals during 2023-24 is
estimated at ₹ 1,27,599
crore, constituting 90.3%
of the total value of mineral
production.
Ferrous Minerals: Hard
substance having luster and shine.
Good conductors of electricity.
a. Iron Ore: India has the larg-
est reserve of iron ore in
Asia and is 5th largest ex-
porter of iron in the world.
About 95 per cent of the
total reserves of iron ore
is located in the States
of Odisha, Jharkhand,
Chhattisgarh, Karnataka,
Goa, etc.
Odisha: Barabil-Koira val-
ley, Sundargarh, Mayur-
bhanj, Cuttack, Sambalpur, Keonjhar and Koraput districts.
Chattisgarh: Bailadila mine, Dalli-Rajhara range.
Jharkhand: Noamandi mines in Singhbhum are the richest. Magnetite ores occur near Daltenganj in Palamu district.
Karnataka: Kemmangundi in Bababudan hills of Chikmagalur district and Sandur and Hospet in Bellary.

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Global distribution:
• Australia: Major iron ore mine in Pilbara in Western Australia.
• South America: The Carajas mine in the state of Para.
• Asia: China(Hebel, Liaoning and Anhui) and India(Odisha, Jharkhand, Chhattisgarh, Karnataka, Goa).
• Africa: Sishen mine in the northern Cape of South Africa.
• North America: In Quebec and Labrador in Canada and Mesabi range in Minnesota and Lake Superior district in
Michigan in the USA.
• Europe: Kiruna mine in Sweden, Kryvyi Rih basin Ukraine and Kursk, ural and kola regions in Russia.

b.
Manganese: India has the world’s second largest
ores and is the world’s 5th largest producer of man-
ganese ore.
Odisha is the leading producer of Manganese. Major
mines in Odisha are located in the central part of the
iron ore belt of India, particularly in Bonai, Kendu-
jhar, Sundergarh, Gangpur, Koraput, Kalahandi and
Bolangir.
Manganese mines located in Karnataka include:
Dharwar, Bellary, Belgaum, North Canara, Chik-
manglur, Shimogga, Chitradurg and Tumkur.
Minor producers include: Maharashtra, Madhya
Pradesh, Andhra Pradesh, Goa and Jharkhand.
Global distribution:
• Australia: Groote Eylandt region, Woodie
Woodie, Bootu Creek Mines.
• South America: Brazil, Carajas region.
• Asia: China(Guangxi and Hunan province),
India(Odisha and Karnataka)
• Africa: South Africa(Kalahari Basin), Ga-
bon(Moanda deposits), Ghana(N Suta and
Tarkwa mines).
• North America: Mexico(Chiapas and Hi-
dalgo region)
• Europe:Russia(Ural and Siberia) and
Ukraine(Nikopol region)

Non-Ferrous Minerals:
a. Bauxite: India ranks fourth in
the world in terms of bauxite
reserves. Found in the tertiary
deposits. Odisha happens to be
the largest producer of Bauxite.
Kalahandi and Sambalpur are
the leading producers.
Bhavnagar and Jamnagar in
Gujarat. Chhattisgarh has
bauxite deposits in Amarkan-
tak Plateau. Madhya Pradesh
has bauxite deposits in Katni
Jabalpur area and Balaghat.
Global Distribution:
• Australia: Largest pro-
ducer(Western Australia,
Queensland and the Northern
Territory).
• China: Second Largest pro-
ducer(Guangxi and Hunan
province).
• Guinea: Boke region
• Brazil: Minas Gerais and Para.
• Indonesia: Islands of Borneo
and Sumatra.

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b. Copper: Copper deposits are mainly found in Jharkhand, Madhya Pradesh, and Rajasthan. Copper is essential in
the electrical industry for manufacturing wires, motors, transformers, and generators.
Rajasthan: Khetri Copper Complex: Operated by Hindustan Copper Limited (HCL), this complex is one of the
oldest copper mines in India and plays a vital role in copper production.
Madhya Pradesh: Location: Madhya Pradesh is home to the Malajkhand Copper Project, one of the largest
copper mines in India.
Jharkhand: Singhbhum Copper Mine: This mine is known for its copper-rich deposits and has been an important
contributor to the state’s economy.
Maharashtra: Kedgaon Mine: This mine is known for its copper deposits and contributes to the overall copper
production in the state

Global deposits:
• Chile: Andes mountains(major mines: Escondida, Collahuasi, El Teneinte)
• Peru: Major mines like Cerro Verde and Antamina.
• China: Jiangxi, Inner Mongolia and Xinxiang
• USA: Arizona, Utah(Bingham Canyon mine), New Mexico and Nevada.
• Australia: South Australia and Queensland, Olympic Dam mine.

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2. Non-Metallic Minerals:

The production of non-metallic minerals is valued at ₹ 13,640 crore, accounting for 9.7% of the total value as compared to
the previous year.
a. Mica: Mica is used in the electrical and electronic industries. India produces around 60% of the world’s mica. It is found in
states like Jharkhand, Andhra Pradesh, Telangana, etc.
• Andhra Pradesh: The mica belt lies in Nellore district [Gudur Mica mines]. Vishakhapatnam, West Godavari and Krish-
na are other important mica producing districts.
• Rajasthan: The main mica belt extends from Jaipur to Udaipur [Along Aravalis].
• Jharkhand: Mica is found in a belt extending for about 150 km in length and 32 km in width from Gaya district of Bihar
to Hazaribagh and Koderma districts of Jharkhand. This belt contains the richest deposits of high quality ruby mica.
Koderma is a well-known place for mica production in Jharkhand.
b. Limestone: Limestone deposits are of sedimentary origin and exist in all the geological sequences from Pre-Cambrian to
Recent except in Gondwana. 75% Limestone is used in cement industry, 16% in iron and steel industry [It acts as flux] and
4% in the chemical industries.
Over three-fourths of the total limestone of India is produced by Madhya Pradesh, Rajasthan, Andhra Pradesh, Guja-
rat, Chhattisgarh and Tamil Nadu.
• Madhya Pradesh:Large deposits occur in the districts of Jabalpur, Satna, Betul, etc.
• Rajasthan: Production occurs in almost all districts.
• Andhra Pradesh:Extensive deposits occur in Cuddapah, Kumool, Guntur, etc.
• Gujarat: High grade limestone deposits occur in Banaskantha district.
• Chhattisgarh: Deposits of limestone occur in Bastar, Durg and surrounding districts.
• Tamil Nadu: Large scale reserves in Ramnathapuram, Tirunelveli, Salem, Coimbatore and Madurai districts.
• Karnataka: Gulbarga, Bijapur and Shimoga districts.

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Mineral Belts in India:

Mineral Belt Location Key Minerals Industrial Significance
Western Belt Maharashtra and Gujarat Manganese, bauxite, - Manganese: Essential for steel production, - Bauxite: Alu-
limestone, gypsum minum production, - Limestone & Gypsum: Construction,
cement, and industrial uses
Eastern Belt Odisha, West Bengal, Iron ore, coal, manga- - Iron Ore: Supports iron and steel industry- Coal: Meets
parts of Jharkhand nese, chromite India’s energy needs- Manganese & Chromite: Steel and
various industries
Southern Belt Tamil Nadu, Andhra Iron ore, bauxite, lime- - Iron Ore: Steel production- Bauxite & Limestone: Alumi-
Pradesh, Karnataka stone num, cement, and construction
Central Belt Chhattisgarh and Mad- Coal, iron ore, bauxite, - Coal: Substantial reserves for energy- Iron Ore: Supports
hya Pradesh limestone, dolomite iron and steel- Bauxite, Limestone, Dolomite: Industrial
uses
North Eastern Aravalli range (Rajasthan) Coal, iron ore, copper, - Coal: Power generation and industry- Iron Ore: Steel in-
Peninsular to Chotanagpur Plateau lead, zinc dustry- Copper, Lead, Zinc: Economic value for industries
Belt (Jharkhand, Odisha)
South West- Karnataka, Goa, parts of Iron ore, manganese, - Iron Ore: High-grade deposits for steel- Manganese:
ern Belt Maharashtra limestone, bauxite Steel and other industries- Bauxite: Aluminum production
North West- Rajasthan and Gujarat Limestone, marble, gyp- - Limestone & Marble: Construction and cement- Gypsum:
ern Belt sum, rock phosphate, Construction, agriculture, manufacturing- Bentonite: Drill-
lignite, bentonite ing fluids, foundry mold

Distribution of mineral resources across the world:

Continent Major Minerals Key Producing Countries / Remarks
Regions
Asia Tin, iron ore, lead, antimony, China (tin, iron ore, lead, antimo- Produces over half of the world’s tin; wide
tungsten, manganese, bauxite, ny, tungsten), Malaysia, Indone- range of ferrous and non-ferrous minerals
nickel, zinc, copper sia (tin)
Europe Iron ore, copper, lead, zinc, Russia, Ukraine, Sweden, France Rich in iron ore and polymetallic deposits in
manganese, nickel (iron); Eastern Europe and Euro- Eastern Europe
pean Russia (other minerals)
North Iron ore, nickel, gold, uranium, Canadian Region (iron, nickel, Mineral-rich regions across the continent
America copper, coal, zinc, lead, silver gold, uranium, copper), Appa-
lachian Region (coal), Western
Cordillera (copper, gold etc.)
South Iron ore, tin, copper, gold, silver, Brazil (iron ore, tin), Bolivia (tin), Major global source of copper and tin; also sig-
America zinc, chromium, manganese, Chile and Peru (copper) nificant in precious and industrial minerals
bauxite, mica, platinum, asbes-
tos, diamond
Africa Diamonds, gold, platinum, co- DRC (cobalt), South Africa, World’s largest producer of diamonds, gold,
balt, copper, iron ore, chromi- Zimbabwe, Zaire (gold), Nigeria, platinum; DRC has 70% of global cobalt pro-
um, uranium, bauxite, oil Libya, Angola (oil) duction
Australia Bauxite, gold, diamond, iron Kalgoorlie and Coolgardie (gold), Largest producer of bauxite; also a global
ore, tin, nickel, copper, lead, other regions across Australia leader in gold, diamonds, and iron ore
zinc, manganese
Antarc- Coal, iron ore, gold, silver, oil Transantarctic Mountains (coal), Forecasted commercial quantities of multiple
tica Prince Charles Mountains (iron) minerals; subject to international treaties and
limited exploitation

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Mining Sector in India:

Significance of Mining Sector in India
1. Economic Contribution: The mining sector contributes
2.2–2.5% of India’s GDP. By enabling domestic raw material
availability, it reduces import dependency and supports Make
in India.
2. Employment Generation:As per the 12th Five Year Plan, each
percentage point of growth in mining creates 13 times more
jobs than agriculture and 6 times more than manufacturing.
3. Economic Diversification and Strategic Positioning: Pro-
motes economic diversification, reducing over-dependence
on agriculture and services. Helps India integrate into global
mineral supply chains, Enhances India’s geo economic and
strategic leverage in a resource-constrained world.
4. Support for the Electric Vehicle (EV) Industry: Domestic min-
ing of these critical and rare earth minerals is vital for the Make
in India EV ecosystem and battery manufacturing. Reduces
reliance on countries like China for battery-grade minerals.
5. Foreign Direct Investment (FDI) and InflowsFinancial : At-
tracts FDI and Foreign Portfolio Investment (FPI), promoting capital formation and technological upgradation. Helps reduce
the Current Account Deficit (CAD) by lowering the import bill of key minerals and fuels.
6. Support to the Renewable Energy Sector: Minerals like aluminium and copper are essential for Solar panels and wind
turbines, Transmission lines and storage batteries. The Panchamrit goals and the 500 GW non-fossil energy target by
2030 require massive mineral inputs. Wind energy, in particular, requires 9x more minerals than gas-based systems (as per
IEA).

Challenges in the Indian Mining Sector:

1. Limited Private Sector Participation in Exploration: Mineral exploration in India is dominated by government agencies
like the Geological Survey of India (GSI) and Mineral Exploration Corporation Limited (MECL) etc. Lack of private investment
results in inefficiencies, slower discovery rates, and minimal adoption of cutting-edge exploration technologies.
2. Regulatory Constraints and Policy Rigidities: The Mines and Minerals (Development and Regulation) Act (MMDR Act),
even after amendments in 1957, 2015, 2021, and 2023, continues to have restrictive provisions: E.g. Mining lease cap at 10
km² per mineral per state limits the scale for large private players.
3. High-Risk, Low-Reward Exploration Environment: Mineral exploration involves long gestation periods, high capital costs,
and low success rates: E.g. Less than 1% of surveyed sites yield commercially viable mines.
4. Double Taxation and Cost Inefficiencies: Minerals like iron ore and bauxite face double taxation: Royalty is calculated on
the Average Sale Price (ASP). No deduction of royalty is allowed while calculating ASP, leading to royalty on royalty.
5. Environmental Degradation and Ecological Sensitivity: E.g. The Damodar River has been severely polluted due to unreg-
ulated coal mining in Jharkhand and West Bengal.
6. Social Displacement and Human Rights Issues: Examples: Niyamgiri Hills protests (against Vedanta’s bauxite mining)
due to tribal and ecological concerns. Sterlite protest in Tamil Nadu due to alleged pollution. POSCO project in Odisha was
stalled despite significant investment promise.
7. Judicial Delays: Judicial interventions, though important for environmental justice, often lead to protracted litigation and
financial losses. Eg- In 2017, the Supreme Court imposed penalties on illegal mining without green clearances in Andhra
Pradesh, Telangana, Karnataka, and Odisha.
8. Occupational Hazards and Safety Deficits: e.g. Chasnala Disaster (1975) near Dhanbad killed over 375 miners, Ksan
coal mine tragedy (2018) in Meghalaya trapped miners in a rat-hole mine and recent coal mining tragedy in Assam’s Dima
Hasao.

Way Forward for India’s Mining Sector

1. Expand and Incentivize Mineral Exploration:
a. Expand exploration coverage from the current ~10% of India’s landmass to tap untapped reserves.
b. Shift from a revenue-maximizing auction model to an exploration investment-incentivizing model, following the
successful examples of Canada, Australia, and South Africa.
2. Regulatory Reforms and Governance Enhancements: Rationalize and streamline the Mines and Minerals (Development
and Regulation) Act, 1957, especially:
a. Remove non-fissile minerals like lithium, titanium, and rare earths from Part B of Schedule I, allowing private sec-
tor participation.
b. Lift the 10 km² area restriction per lessee to enable large-scale and efficient mining operations.

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3. Ensure Environmental and Social Sustainability:

a. Strict enforcement of Environmental Impact Assessments (EIA) and Social Impact Assessments (SIA).
b. Implementing the Precautionary Principle, intergenerational equity, and scientific mining as core decision
principles. Eg- The Goa Iron Ore Permanent Fund, as directed by the Supreme Court in 2014, must be emulated to
preserve mineral wealth for future generations.
4. Technology Adoption and Transparency:
a. Implement real-time surveillance systems, drone monitoring, and GIS mapping for: Transparent mineral block
allocations, Prevention of illegal and unscientific mining (Eg- rat-hole mining ban enforcement)
5. Maximise Socio-Economic Gains:
a. Institutionalise District Mineral Foundation (DMF) funds for: Building infrastructure, health and education services
in affected communities.
b. Ensuring tribal rights and community consent in accordance with the PESA Act and Forest Rights Act (FRA).
6. Adherence to Zero-Loss Principle:
a. Ensure full economic rent is captured by the state: Sale price minus extraction costs (including a reasonable profit
for the miner) must accrue to public benefit.
b. Public ownership of minerals must translate into wealth for future generations through mechanisms like the
Future Generations Fund. Inspired by Norway’s Sovereign Wealth Fund, India should institutionalize resource
revenue savings.

Natural Resource Potential of Deccan Trap:

The Deccan Trap is one of the world’s largest volcanic provinces,
formed by massive volcanic eruptions around 66 million years ago.
Spanning approximately 500,000 square kilometers, it covers large parts
of Maharashtra, Madhya Pradesh, Gujarat, Karnataka, Telangana, and
Andhra Pradesh. The Deccan Trap is not only a geological marvel but
also a region of immense natural resource potential, which has played a
crucial role in India’s economic development and continues to offer new
opportunities for sustainable growth.

Natural Resource Potential of

Deccan Trap:
1. Mineral Resources: Basalt: The primary rock, used extensively
in construction—roads, bridges, concrete aggregates.
a. Bauxite: Formed through basalt weathering. Found in
Kolhapur, Satara (MH), Gujarat, Odisha. Vital for the
aluminum industry.
b. Iron Ore & Manganese: Found in Vidarbha (MH), Durg-Bastar (CG). Crucial for steel and battery manufacturing.
c. Copper: Balaghat (MP) is rich in copper deposits—supports electronics and industry.
d. Other Minerals: Limestone & Dolomite – for cement & steel (Eg- Chandrapur, MH) Zeolites, Agates, Jaspers –
used in filtration, gems, and industry, Quartz & Silica – for glass and ceramics
2. Hydrocarbon Potential: Deep sedimentary basins under basalt in Saurashtra & central India have shown petroleum and
natural gas reserves.
3. Soil Resources:
a. Black Soil (Regur) High moisture retention, rich in lime, iron, magnesium.Ideal for cotton, oilseeds, pulses, sugar-
cane.Found in MH, Gujarat, MP, Telangana, KA. Backbone of India’s cotton economy.
b. Laterite Soil: Rich in iron and aluminum; found on higher plateau zones. Suitable for tea, coffee, cashew—common
in Western Ghats, KA, TN, Kerala.
4. Water Resources:
a. Surface Water: Major rivers: Godavari, Krishna, Narmada, Tapi, Kaveri
b. Key Dams: Sardar Sarovar (Narmada), Nagarjuna Sagar (Krishna), Jayakwadi (Godavari), Koyna (Maharashtra)
Supports irrigation, hydroelectricity, drinking water, and industry.

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5. Energy Resources:
a. Hydroelectricity: Elevation + rivers = ideal for dams (Eg- Koyna HEP – one of India’s largest).
b. Geothermal: Residual volcanic heat in Konkan geothermal province (Eg- Unhavare, Tural).
c. Wind & Solar Power: Open plateau topography enables large wind farms (Satara, TN) and solar parks.
6. Forest and Biodiversity:
a. Forest Types: Dry and moist deciduous, montane forests
b. Key Flora: Teak, bamboo, Hardwickia,
c. Key Fauna: Tiger, Gaur, Blackbuck, Wild dog
d. Eco-tourism & conservation: Sanctuaries and biosphere reserves in Western Ghats and Maharashtra
7. Environmental and Climate Significance:
a. Western Ghats influence monsoon patterns – vital for water availability.
b. Carbon sequestration potential of basaltic rocks – natural climate mitigation tool.
8. Tourism and Cultural Heritage: Ajanta & Ellora Caves, Elephanta, Mahabaleshwar, Lonar Crater. Boosts local economy and jobs.

Natural Resource Potential of Chotanagpur Region:

Chotanagpur plateau represents the north-eastern projection of the Indian Peninsula comprising Jharkhand, northern part of
Chhattisgarh and Purulia district of West Bengal with an average elevation of the plateau is 700 m above sea level and is called the
Ruhr of India.

Natural resource potential of Chotanagpur Plateau:

1. Mineral Resources:
a. Coal: The Jharia coalfields
(Jharkhand) are India’s oldest and
most significant coalfields, providing a
substantial amount of coking coal.
b. Iron Ore: More than 26% of iron ore
reserves are located in Odisha, contrib-
uting nearly 18% of annual Indian iron
ore production.
c. Bauxite: The Kalahandi district in
Odisha and Singhbhum in Jharkhand
have significant bauxite Reserves.
2. Water Resources:
a. The plateau is the origin of several
important rivers, including the Sub-
arnarekha, Damodar, Koel, and Sankh.
b. The Maithon Dam and Tilaiya Dam on the Damodar River provide irrigation and hydropower to Jharkhand and
West Bengal.
3. Forest Resources:
a. The Saranda Forest in Jharkhand, one of the largest sal forests in Asia, provides timber and other forest products.
b. Key species include sal (Shorea robusta), which provides valuable timber and supports diverse wildlife, and mahua
(Madhuca longifolia), known for its fragrant flowers used to make a traditional alcoholic beverage and as a food
source for animals.
c. Significant plants include bamboo (Bambusa), teak (Tectona grandis),and wild mango (Mangifera indica), flame
of the forest (Butea monosperma).
4. Ecological and Biodiversity Resources:
a. It is home to wildlife sanctuaries like the Betla National Park, Palamau Tiger Reserve, and Hazaribagh Wildlife
Sanctuary, which are vital for conservation efforts.
b. These areas support species such as tigers, leopards, elephants, sloth bears, and a variety of bird species.
5. Agriculture Potential: Presence of favourable conditions:
a. The region receives 1,000 mm to 1,600 mm of rainfall annually, which is adequate to support agriculture.
b. Red Soil: Found primarily in the Damodar Valley and Rajmahal area. This soil is non-calcareous, acidic (pH rang-
ing from 5 to 6.8), and rich in ferric oxide.

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Critical Minerals
Critical minerals are those minerals that are essential for a country’s economic development and national security. Their limited
availability or concentrated extraction and processing in a few geographical locations can create supply chain vulnerabilities or
disrupt critical industries.

India’s Identification of Critical Minerals: Recognizing the importance

of critical minerals, the Government of India has identified 30 critical
minerals through a three-stage assessment process.
• This list includes lithium, cobalt, nickel, rare earth ele-
ments, titanium, molybdenum, and vanadium, among
others.
• The parameters used for selection include resource avail-
ability, import dependency, and their significance for
future technologies, clean energy, and agriculture.

Importance of critical minerals:

1. Accelerating India’s Electric Vehicle (EV) Ecosystem: The
Economic Survey 2023-24 predicts that India’s electric vehi-
cle market will see a 49% compound annual growth (CAGR)
between 2022 and 2030.
2. Driving Economic Growth and Employment: The govern-
ment’s identification of 30 critical minerals and reforms
like exploration licenses for private players are expected to
de-risk investments and attract foreign players.
3. Supporting Semiconductor and High-Tech Manufacturing:
Developing a domestic critical mineral base would strengthen
India’s $10 billion semiconductor initiative and position it as
a global electronics hub.
4. Strengthening India’s Global Trade Position: With China
accounting for 90% of global rare earth processing, India can leverage its own reserves and KABIL partnerships to diversify
supply chains and capture global markets.
5. Securing India’s Energy Storage Needs: Energy storage solutions are critical for grid stability, especially as India scales up
renewable energy installations to meet its target of 500 GW by 2030.

Challenges:
1. Overdependence on Imports: India imports 100% of its germanium needs, leaving it exposed to China’s 2023 tightened
export policies on these minerals.
2. Limited Domestic Exploration and Mining: only 48% of mineral blocks auctioned between 2020 and 2023 were sold,
and many auctioned blocks lack G1 or G2-level exploration data, making them commercially unattractive.
3. Underdeveloped Processing and Refining Capacity: India has discovered lithium in Jammu & Kashmir but lacks the
refining capacity to process it domestically. China, by contrast, processes over 90% of global rare earths, enabling it to
dominate the global supply chain of advanced technologies
4. Policy and Regulatory Gaps: While the 2023 Mines and Minerals Act introduced exploration licenses, its execution has
been slow, with only a few licenses cleared and most going to public sector firms.
5. Geopolitical Risks and Global Competition: Countries like the U.S., China, and Australia are entering into exclusive
agreements with other countries for mineral supplies, leaving India lagging behind.
6. Environmental and Social Concerns: India’s lithium reserves in Jammu & Kashmir, for instance, are located in ecological-
ly sensitive areas, raising concerns about water contamination and biodiversity loss.

National Critical Mineral Mission (NCMM):

Announced in Budget 2024-25, to secure India’s critical mineral supply chain by ensuring mineral availability from domestic and
foreign sources. It will encompass all stages of the value chain, including mineral exploration, mining, beneficiation, processing,
and recovery from end-of-life products.

Key Features:
1. It will offer financial incentives for critical mineral exploration and promote the recovery of these minerals from overbur-
den and tailings.
2. It aims to create a fast track regulatory approval process for critical mineral mining projects.
3. It will encourage Indian PSUs and private sector companies to acquire critical mineral assets abroad and enhance trade
with resource-rich countries.

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4. It proposes development of a stockpile of critical minerals within the country.

5. It includes provisions for setting up mineral processing parks.
6. Mining in offshore areas (Polymetallic nodules contain minerals like Cobalt, REE, etc.)

Way Forward:
1. Strengthening Domestic Critical Mineral Production: Exploring alternative allocation mechanisms to attract more private
investment, such as granting exploration companies the right to mine the minerals they discover. Increase public and private
investment in geological surveys, exploration technologies, etc.
2. Developing Domestic Processing Capabilities: Provide financial incentives, tax breaks, and other policy support to encour-
age private and public sector companies to invest in processing facilities. Special Economic Zones (SEZs) focused on critical
mineral processing can be established.
3. Need for Robust Global Cooperation: Strengthening bilateral and multilateral partnerships with mineral-rich countries and
other key stakeholders to secure access to critical mineral supplies.
4. Develop a Comprehensive Critical Minerals Strategy (CMS): It can help focus on priority concerns in supply risks, domes-
tic policy regimes, and sustainability. Conduct periodic detailed assessments of India’s critical mineral needs across various
sectors.
5. Setting up a state-of-the-art e-waste recycling facility, introducing a nationwide “Recycle for Resources” campaign to
increase public awareness and participation in e-waste recycling, etc. Diversifying import sources from various countries.
6. Role of State Government: Infrastructure Development- Develop transportation, power, and storage infrastructure near
Critical Mineral mining areas, etc.

Lithium Reserves:
Lithium is a non-ferrous, soft, silvery-white alkali metal. It is also called ‘white gold’ due to its high demand for rechargeable batter-
ies. Under standard conditions, it is the least dense metal and the least dense solid element. Like all alkali metals, it is highly reac-
tive and flammable, so it must be stored in a vacuum, inert atmosphere, or inert liquid (such as purified kerosene or mineral oil).

Lithium Reserves in India:

1. According to the researchers at the Atomic Minerals Directorate for Exploration and Research (AMD), Department of
Atomic Energy, Government of India, potential lithium reserves have been found in the Mandya district, Karnatak, an
element that is increasingly finding applications in battery technology used in electric vehicles.
2. The Geological Survey of India (GSI) has established “inferred” lithium resources of 5.9 million tonnes in the Sa-
lal-Haimana area of the Reasi District of Jammu and Kashmir. These resources have been established as part of the “Reasi
Sersandu-Kherikot-Rahotkot-Darabi” mineral block, where prospecting has been ongoing since 2021-22.

Significance of Lithium for India:

1. Lithium is a soft, silvery-white alkali metal
with high reactivity, low density, and excellent
electrochemical properties.
2. India has pledged to reduce its emissions
towards net-zero by 2070, requiring lithium as
a critical component in EV batteries, and renew-
able energy storage systems.
3. India needs 27 GW of grid-scale battery ener-
gy storage systems by 2030, requiring massive
amounts of lithium.
4. The World Economic Forum warns of global
lithium shortages due to rising demand for EVs
and rechargeable batteries, estimated to reach
2 billion by 2050.
5. Lithium’s role in green technologies and ener-
gy storage makes it a vital resource as countries aim to meet climate goals and transition to cleaner energy.
6. India imports 70–80% of its lithium and 70% of its lithium-ion from China, which could put its growth and domestic
industries at risk if tensions between the countries continue.

Challenges in Extraction and Investment of Lithium in India:

1. Extraction Challenges:
a. Lithium extraction from hard rock pegmatite deposits is difficult, requiring specialised technology and expertise.
b. Lithium extraction, particularly through open-pit mining, can have substantial environmental impacts, including
habitat destruction and pollution.

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c. In remote areas like J&K’s Reasi district, inadequate infrastructure for transportation and logistics can hinder
efficient extraction and increase costs.
d. Lithium projects, especially from brine assets, typically take 6 to 7 years from discovery to production, accord-
ing to the International Energy Agency (IEA).
e. China currently dominates the lithium processing sector, handling 65% of the global market. India lacks a foot-
hold in this critical area.
2. Investment Challenges:
a. India’s current mineral reporting standards, based on the United Nations Framework Classification for Resources
(UNFC), do not align with the Committee for Mineral Reserves International Reporting Standards (CRIRSCO)
used globally.
b. The ethnic and religious tensions could complicate efforts to attract investment and manage resource development.
E.g. Lithium exploration efforts in Kamjong district have been stalled due to local resistance.
c. China controls 77% of the global lithium-ion battery manufacturing capacity, creating a strategic challenge for
other nations, including India, which seeks to reduce its dependency on Chinese supplies.

Way Forward:
1. Diversify International collaboration: Collaborate with the US, Japan, Indonesia, and South Korea, Indo-Pacific Econom-
ic Framework, etc. to enhance the management of the global lithium supply chain and mitigate strategic vulnerabilities.
2. Public-Private partnership: To speed up the process of commercial production, more involvement of the private sector.
Recent decision to allow the auction of lithium mines is the right step in this direction.
3. Technology: Environment-friendly technology transfers from Australia regarding hard rock mineral extraction could be
utilized in earthquake-prone regions like J&K and Uttarakhand.
4. Involvement of local communities: Prioritize transparent communication and engagement with local communities to
address concerns, providing jobs for locals etc.
5. Integrate sustainability principles into the entire lifecycle of lithium mining, from extraction to end-of-life battery manage-
ment.
6. Government initiatives, including Production-Linked Incentive (PLI) schemes, aim to improve the ease of doing business
and incentivize investments in the critical minerals sector can draw interest from major players like Ola Electric and
Reliance New Energy.

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CHAPTER 3

Energy Resources

● India is the third-largest energy consumer globally, with demand driven by economic growth, urbanization, and
industrialization.
● As of 2024, the major contributors to India’s electricity generation were coal (about 69%), renewable energy
sources (about 26%), hydroelectric power (about 3%), and nuclear power (about 2%), according to the Ministry
of Power.
● According to the Ministry of Power, the country’s peak demand reached a record high of 223 gigawatts (GW) in
June 2023.
● As of April, 2025, India’s installed renewable energy capacity reached around 201 gigawatts (GW), which includes
solar power (106 GW), wind power (80 GW), biomass, and small hydropower, as reported by the Ministry of New
and Renewable Energy (MNRE).
● India ranked 4th globally in renewable energy installed capacity, 4th in wind power, and 5th in solar power.
● Expected installed capacity: 777 GW by 2029-30 and 900 GW by 2031-32. Non-fossil based energy to contrib-
ute 485.15 GW (62.43%) by 2029-30 and 596.27 GW (66.22%) by 2031-32.

Non-Conventional sources of Energy:

Current status of renewable energy in india:
1. The share of RE in the total installed generation capacity in the country stands at 43.12%.
2. India ranks fourth globally in renewable energy capacity. 4th in Wind Power (46.65 GW) capacity and 5th in solar
photovoltaic power (85.47 GW).
3. First time crossed 200 GW capacity from non-fossil fuel sources. It includes Solar power: 85.47 GW, Large hydro
power: 46.93 GW, Wind power: 46.66 GW, Biopower: 10.95 GW, Small hydropower: 5.00 GW, Waste to Energy: 0.60
GW.
4. RE targets in India
a. India aims to reach a non-fossil fuel energy capacity of 500 GW by 2030.
b. Fulfilling at least half of its energy requirements via RE by 2030.

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Solar Power:
• As of January, 2025, India’s total solar capacity installed stands at 100.33 GW.
• Potential of Solar Energy in India: 748 GW assuming 3% of the waste land area to be covered by Solar PV modules
[National Institute of Solar Energy (NISE)].
• As of 2025, more than 70 solar parks with a combined capacity of more than 40 GW were in various stages of
development.
• The Bhadla Solar Park in Rajasthan is one of the largest solar power plants in India. It has a total installed capacity of
2.25 GW.

Advantages of solar power Disadvantages of solar power.

Energy Independence: With the country importing over 80% of Land Acquisition Challenges: Solar Power Plants occupy at
its oil needs, solar power offers a path to reduce this dependen- least 5 acres of land per 1 MW output. E.g. the 5000 MW
cy. Dholera Solar Park in Gujarat faced protests from local
farmers.
Economic Catalyst: Solar energy sector is projected to gener-
ate 3.26 million jobs by 2050. Grid Integration and Infrastructure Bottlenecks: The coun-
try’s transmission losses stand at about 16.4%, grid failures, like
Climate Change Mitigation: India’s Carbon Credit Trading the one in Mumbai in October 2020, highlight the vulnerability of
Scheme further incentivizes solar adoption, potentially acceler- the system.
ating the transition and positioning India as a leader in climate
action among developing nations. Environmental concerns: Extraction of minerals needed for
Solar, particularly Lithium, Cobalt, Nickel, etc require substantial
Rural Electrification: The Pradhan Mantri Kisan Urja Suraksha water, releasing about 15 tonnes of CO2 per tonne of mineral.
evam Utthaan Mahabhiyan (PM-KUSUM) scheme aims to add (Economic Survey 2023-24)
30.8 GW of solar capacity by 2026.
Efficiency: Most silicon solar cells have efficiencies of around
Technological Innovation: The establishment of the National 15-20% with theoretical limits of around 30%.
Institute of Solar Energy (NISE) as an autonomous R&D in-
stitution, indigenous development of highly stable, low-cost Storage and Round-the-Clock Power: The current battery
Carbon-based perovskite solar cells. storage capacity in India is merely 20 MWh, against a projected
requirement of 74 gigawatts by 2032.

Emerging solar technologies:

1. Floating solar PV farms: Modules are mounted on floating structures on water bodies instead of ground installation. Eg- A
600 MW floating solar farm is being set up at Omkareshwar Dam in Madhya Pradesh.
2. Perovskite solar cells: Employ perovskites as light absorbers having the potential for high efficiencies and low costs. Eg-
Oxford PV has achieved 28% efficiency in perovskite solar cells, nearing silicon cell efficiency.
3. Solar Carports: Solar panels are installed as rooftops over vehicle parking areas to generate power while providing shade.
Dual land use improves efficiency. Carports with solar tracking to optimize generation are being adopted. Tata Motors in-
stalled India’s largest 6.2 MW solar carport at its Pune facility
4. Bifacial Solar Cells: They have both front and back photo-sensitive surfaces to capture reflected light, generating up to 30%
more energy than traditional panels. Global installation is rising, given higher efficiency and cost benefits.

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5. Building integrated photovoltaics (BIPV): Solar cells integrated into building materials, serving as construction surfaces
and electricity generators. It helps avoid separate land requirements but has higher installation complexity and costs.

Factors behind the growth of solar energy in india:

1. Geographical Advantage: With ~300 sunny days per year and an average of 4-7 kWh/m²/day, making most regions ideal for
solar power generation.
2. Government Schemes:
a. Pradhan Mantri Kisan Urja Suraksha
evam Utthaan Mahabhiyan (PM-KUSUM)
Scheme targeting 30.8 GW solar power in
the agricultural sector.
b. PM Surya Ghar: Muft Bijli Yojana enabling
nearly 10.09 lakh rooftop solar instal-
lations (March 2025), establishment of
National Institute of Solar Energy etc.
3. Financial support and encouraging investment:
a. India has allowed 100% of foreign direct
investment (FDI) through the automated
process.
b. Further, Interstate transmission system
(ISTS) fees are waived for solar and wind
energy sales across states from June 30,
2025.
4. Boost RE consumption: Renewable Purchase Obligation (RPO) trajectory has been announced till 2029-30 including
separate RPO for Decentralized Renewable Energy.
5. Indigenous manufacturing of solar components: Through initiatives like Solar Park Scheme, Production Linked Incentive
(PLI) Scheme under National Programme on High Efficiency Solar PV Modules, etc.
6. Consumer awareness: Bureau of Energy Efficiency (BEE) launched Standards and Labeling (S&L) programs for both
grid-connected solar inverters and solar photovoltaic (PV) modules in March 2024, aiming to help consumers make
informed choices and improve energy efficiency.
7. Building infrastructure: Under the Green Energy Corridor Scheme, the government is laying new transmission lines and
creating new substation capacity for evacuation of renewable power.
8. International Cooperation and Leadership: Initiatives like International Solar alliance, Indo-German Solar Energy Part-
nership (IGSP) are developing market forces while introducing enabling mechanisms and facilitating investments in rooftop
PV systems.

Government initiatives for solar energy promotion:

1. Pradhan Mantri Suryodaya Yojana: aimed at installing rooftop solar power systems in one crore households across the
nation.
2. Solar Park Scheme: The Solar Park Scheme plans to build a number of solar parks, each with a capacity of nearly 500 MW,
across several states.
3. National Solar Mission: It is a major initiative of the Government of India and State Governments to promote ecologically
sustainable growth while addressing India’s energy security challenge.
4. Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM): The PM-KUSUM scheme was launched by the Ministry
of New and Renewable Energy (MNRE) to support installation of off-grid solar pumps in rural areas and reduce dependence
on grid, in grid-connected areas.

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Wind Energy:
● India ranks fourth globally for installed wind energy capacity.
● According to the National Institute of Wind Energy (NIWE), India has a wind potential of 1,163.86 GW at 150 meters
above ground level.
● Wind Power contributes to nearly 47 GW of installed renewable energy capacity in India.
● Key states for wind capacity include Gujarat, Tamil Nadu, Karnataka, Maharashtra, Rajasthan, and Andhra
Pradesh. These states collectively account for over 93% of India’s wind power capacity.
● With 10,603.5 MW of installed wind capacity, Tamil Nadu holds the second-highest capacity in the country.

Advantages of wind energy Challenges Associated

Unlimited Supply: Wind Energy is unlimited in supply; Land Acquisition Issues- Acquiring large tracts of land for wind farms is
this makes wind power a sustainable energy source a complex and time-consuming process in India.
for the future.
Inadequate Transmission and Grid Infrastructure: Eg- Curtailment
Reduced Greenhouse Gas Emissions: Eg- In 2021, issues in Gujarat and Tamil Nadu due to limited transmission lines con-
wind energy in the United States helped avoid ap- necting wind farms to the main grid.
proximately 189 million metric tons of CO₂ emissions,
equivalent to taking 41 million cars off the road. Lack of Updated Policies and Incentives: Eg- Opposition to TN’s wind
energy policy from wind energy investors for not accounting for older
Job Creation: Eg- India’s wind energy sector has creat- turbines in the wind energy policy.
ed thousands of jobs, with Tamil Nadu alone providing
numerous opportunities for local technicians and Local Ecological Concerns: Eg- Rajasthan has faced resistance to wind
engineers. energy installations due to concerns over the impact on bird migratory
routes and local wildlife habitats.

National Offshore Wind Energy Policy – 2015

• Aim: To provide a legal framework for development of the offshore wind sector in India.
• Development Scope: The policy allows for offshore wind energy projects up to 200 nautical miles from India’s baseline, cov-
ering the country’s Exclusive Economic Zone (EEZ).
• Nodal Ministry and Agency: The Ministry of New & Renewable Energy (MNRE) serves as the primary ministry, with the Na-
tional Institute of Wind Energy (NIWE) designated as the lead agency for offshore wind energy development.
• Long-Term Capacity Target: The policy sets a goal to reach 30 GW of offshore wind power capacity by 2030, supporting
India’s renewable energy ambitions.
• Renewable Purchase Obligation (RPO) Trajectory: A roadmap has been declared for the Wind Renewable Purchase Obliga-
tion (RPO), establishing targets through the year 2030 to enhance offshore wind energy adoption.

Way Forward
• Policy Incentives: Introduce financial incentives for repowering projects, such as tax benefits, grants, or subsidies, to im-
prove project viability.
• Banking Facility Extension: Allow energy banking for repowered turbines to ensure financial stability for wind energy genera-
tors.
• Land Use Flexibility: Streamline land allocation and consider shared or additional land for high-capacity turbine installations
where feasible.
• Infrastructure Upgrades: Invest in transmission and evacuation infrastructure to handle increased energy output from new
turbines.
• Streamlined Approvals: Simplify approval processes for repowering and refurbishment to accelerate project timelines and
reduce administrative hurdles.

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Hydrogen fuel:
Hydrogen fuel cells, a type of Fuel Cells, offer immense promise as sources of clean energy for the future. These generate electricity by
combining hydrogen (as a fuel) and oxygen electrochemically, producing only water and heat as byproducts. Hydrogen fuel cells
are much quieter than gasoline or diesel vehicles and can be easily scaled up by increasing the fuel supply, unlike batteries,
which require heavier components.

National Green Hydrogen Mission (NGHM):

Launched in 2023, with an outlay of ₹ 19,744, to make India a Global Hub for production, usage and export of Green Hydrogen and its deriva-
tives.

Key features of NGHM:

• Power capacity: The mission seeks to promote the development of green hydrogen production capacity of at least 5 MMT
per annum with an associated renewable energy capacity addition of about 125 GW in the country by 2030.
• Job creation: It envisages an investment of over ₹8 lakh crore and creation of over 6 lakh jobs by 2030.
• Reducing energy import bill: It will also result in a cumulative reduction in fossil fuel imports of over ₹1 lakh crore and abate-
ment of nearly 50 MMT of annual greenhouse gas emissions by 2030.
• Export promotion: The mission will facilitate demand creation, production, utilisation and export of green hydrogen.
• Incentivization: Under the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), two distinct financial
incentive mechanisms targeting domestic manufacturing of electrolysers and production of green hydrogen will be provided
under the mission.
• Green Hydrogen Hubs: Regions capable of supporting large-scale production and/or utilisation of hydrogen will be identified
and developed as Green Hydrogen Hubs.

Initial steps taken under NGHM

• GAIL Limited has started India’s maiden project of blending Hydrogen in City Gas Distribution grid in Indore (Madhya
Pradesh)
• NTPC Limited has initiated blending of Green Hydrogen up to 8% in PNG Network at NTPC Surat (Gujarat).
• Hydrogen based Fuel-Cell Electric Vehicle (FCEV) Buses in Greater Noida (Uttar Pradesh) and Leh by NTPC.
• Oil India Limited has developed a 60-kW capacity hydrogen fuel cell bus, which is a hybrid of an electric drive and a
fuel cell.

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Challenges in green hydrogen adoption

1. Economically viability: The current cost of producing green hydrogen via electrolysis, ranging from $4.10 to $7 per
kg, is still too high to compete with grey or brown hydrogen.(NITI Aayog)
2. Difficulty in Hydrogen Storage: As hydrogen as a gas typically requires high-pressure tanks (350–700 bar) and as a
liquid requires cryogenic temperatures because the boiling point of hydrogen at one atmosphere pressure is −252.8°C.
3. Lack of Skill: In the domain of hydrogen production, the workforce demand is expected to reach ~2.83 lakhs, encom-
passing roles in design and planning, installation, commissioning, and green hydrogen production units.
4. Resource scarcity: Green hydrogen is produced by electrolyzing water, which can require up to 9 Liters of water per
kilogram of hydrogen (As per International Energy Agency).
5. Lack of global standards on carbon intensity & safety: Regulations for green hydrogen definitions, transportation,
storage, safety, and usage vary widely across countries.

Way forward
• Reduce cost: India aims to reduce green hydrogen production costs to $1 per kg by 2030 through low-cost renewable
energy, local electrolyser manufacturing, and technological advancements.
• Incentives: For new applications, where the viability of using green hydrogen is still at an early stage, necessary incen-
tives should be designed. For example, the Production-Linked Incentive (PLI) scheme for green steel targeting export
markets.
• Research and Development: India should invest $1 billion in R&D by 2030 to advance commercial green hydrogen
technologies and promote alternative methods like bio-hydrogen
• Initiate green hydrogen standards and a labelling programme: A digital (AI/ML equipped) labelling and tracing mech-
anism certification of origin should be initiated.
• Construct an inter-ministerial governance structure: An interdisciplinary Project Management Unit (PMU) with
globally trained experts must be created which can dedicate fulltime resources to effectively implement the mission.

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Nuclear Energy
• India follows a unique three-stage nuclear
power program designed to efficiently
utilize its vast thorium reserves.
• As of 2024, nuclear energy contributes
approximately 3% to India’s total electric-
ity generation.
• The country has an installed nuclear
capacity of 7.48 GWe, which is set to
increase to 13.08 GWe by 2029 with new
reactor additions.
• Tamil Nadu is the largest producer of
nuclear energy in India, hosting significant
facilities like the Kudankulam Nuclear Pow-
er Plant, which has an operational capacity
of 2,000 MW.
• As of now, India operates 22 nuclear
reactors with a total installed capacity of
over 7,480 MW.

Role of Nuclear Energy in Advancing India’s Energy Transi-

tion and Driving Economic Growth:
1. Reducing Fossil Fuel Dependency and Achieving Net-Zero Goals: As India’s nuclear power capacity is set to grow from
8,180 MW to 22,480 MW by 2031-32.
2. Catalyst for Energy Security and Stable Supply: As India’s electricity demand grows at 6-8% annually, the government
plans to add 18 reactors by 2031-32, underscoring nuclear energy’s critical role in maintaining a stable power supply amid
rising demand.
3. Economic Growth Through Industrial Decarbonization: By providing reliable captive power through technologies like
Bharat Small Reactors (BSRs), nuclear energy supports industrial sectors in meeting carbon reduction targets.
4. Enhancing Technological Innovation and R&D: The Prototype Fast Breeder Reactor (PFBR), which reached core loading
in 2024, exemplifies India’s progress toward developing thorium-based nuclear power.
5. Job Creation and Skill Development: Nuclear power creates about 25% more employment per unit of electricity than
wind power, while workers in the nuclear industry earn one third more than other renewable sectors. (International Atomic
Energy Agency)

Challenges:
1. Slow Pace of Project Implementation: The Prototype Fast Breeder Reactor (PFBR), which began construction in 2004,
only achieved core loading in 2024, and commercial operations are still far off.
2. Uranium Supply Constraints: India’s uranium production is limited, contributing to only 1-2% of global production..
a. The 2005 US-India Civil Nuclear Agreement has alleviated some pressure by securing access to internation-
al uranium markets, but India still faces dependency on external sources for fuel, which can lead to geopolitical
risks.
3. Technological Bottlenecks in Thorium Utilization: The Fast Breeder Reactors (FBRs), essential for transitioning to
thorium, have faced consistent technological bottlenecks. Also, India’s accelerator-driven subcritical system (ADSS),
proposed in 2003, has not yet materialized, delaying the shift to thorium.
4. Financial Constraints and Investment Challenges: Although the Union Budget 2025-26 allocated ₹20,000 crore for
Small Modular Reactors (SMRs), the nuclear sector still faces challenges in attracting sufficient investment. According to
the CEA (Central Electricity Authority), the capital cost of a PHW nuclear power plant in India is about INR 117 million.
5. Safety Concerns and Public Perception: Incidents like the Fukushima disaster have heightened global concerns about
nuclear safety, contributing to resistance in some regions.
6. Environmental and Waste Management Issues: India’s nuclear plants store waste for five to seven years before transfer-
ring it to storage facilities, but the long-term management of spent fuel is still unresolved.

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Nuclear Energy Mission

Announced in Union Budget 2025-26, with an allocation of 20,000 crore, the
mission aims to achieve 100 GW of nuclear power capacity by 2047, aligning
with its long-term energy transition strategy and broader “Viksit Bharat” vision.
1. India’s installed nuclear energy capacity is 8180 MW as of January 30,
2025. The government plans to increase this to 22,480 MW by 2031-
32.
2. Aim: For research and development of small modular reactors (SMRs),
and setting up of at least five SMRs by 2033.
3. Private Sector Participation: Proposed changes to the Atomic Energy
Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010, aim
to encourage private sector involvement in nuclear energy projects.
4. Indigenous Technology Development: The mission emphasizes the de-
velopment of BSRs, which are compact 220 MW Pressurized Heavy
Water Reactors (PHWRs) designed for captive use.
5. Help in energy transition: India’s commitment to achieving 500 GW of
non-fossil fuel-based energy generation by 2030 and meeting 50% of
its energy requirements from renewable energy by 2030, as pledged at
the COP26 Summit in Glasgow in 2021.

Significance of SMR Nuclear Energy

1. Compact Architecture and Passive Safety: There is less reliance on
active safety systems and additional pumps, as well as AC power for ac-
cident mitigation. E.g. US based NuScale’s SMR design includes pas-
sive cooling systems that eliminate the need for external electricity
during emergencies.
2. Flexibility in Applications: SMRs can be used for diverse applications such as electricity generation, industrial heat supply,
and desalination. E.g. South Korea’s SMART (System-integrated Modular Advanced Reactor) is designed for generating
electricity (up to 100 MWe) and/or thermal applications such as seawater desalination.
3. Modularity for Factory Fabrication: Major components of SMRs are factory-built, enabling higher quality standards and
reducing construction time and costs. E.g. NuScale’s SMR plant can be assembled in modules at a factory and transport-
ed to the site, reducing overall space.
4. Potential for subgrade (underground or underwater) location: Reactor unit providing more protection from natural (e.g.
seismic or tsunami according to the location) or man-made hazards. E.g. Russia’s Akademik Lomonosov, a floating
nuclear power plant, is designed to operate in remote Arctic regions.
5. Scalability: The modular design and small size lends itself to having multiple units on the same site.
6. Portability: Ability to remove reactor module or in-situ decommissioning at the end of the lifetime.

Challenges:
1. Private sector and profit orientation: Private sector can be tempted to lower costs by cutting corners compromising
safety and security. The Fukushima accident review has already resulted in new safety requirements for operating
and new reactors.
2. Unreliability of passive safety features: As per U.S. Nuclear Regulatory Commission review of the NuScale design
revealed that passive emergency systems could deplete cooling water of boron, which is needed to keep the reactor
safely shut down after an accident.
3. Economic Viability: For example, a 1,100 MWe plant would cost only about three times as much to build as a 180
MWe version, but would generate six times the power.
4. Problem of radioactive waste: In terms of the quantity of highly radioactive isotopes, small reactors will produce just
as much as large reactors per unit of heat generated and will require the same disposal arrangements.
5. No fuel efficiency than large reactors: On contrary some SMRs require fuel called “high-assay low enriched uranium
(HALEU),” with higher concentrations of the isotope uranium-235 than conventional light-water reactor fuel requiring
a cumbersome enrichment process.

Way forward
1. Universal Regulatory Frameworks: Standardization and Licensing by regulatory frameworks to facilitate the deployment
of SMRs across different countries.
2. Addressing Safety Concerns: Engaging with the public to address safety and environmental concerns can improve
acceptance and support for SMR projects.
3. A comprehensive safety assessment methodology is required to ensure that the Systems, Structures and Compo-
nents (SSCs) of SMRs.
4. Construction of FOAK (First of a kind) SMR demonstration units and learning: Government can support projects in
many forms, ranging from specific long-term power purchase agreements to cost-sharing mechanisms that can minimize

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construction risks so as to attract more investors.

5. Project specific Techno-Economic Assessment (TEA): It needs to be performed against a set of pre-defined criteria
such as potential of the SMR towards emission free generation of electricity etc.
6. Safeguards by Design (SBD): Consideration of Safeguards requirements during early stages of SMR designs in close
interaction with IAEA, such that the implementation of Safeguards can be effective throughout the life cycle of SMR
plant.
7. Innovative Financing Framework: Availability of low-cost finance, green finance and incorporation of nuclear into
green taxonomy can improve the economics of SMR projects.

Conventional sources of Energy:

• India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of
442.85 GW as of April 30, 2024.
• Power consumption in India in FY23 logged a 9.5% growth to 1,503.65 billion units (BU).
• India has committed to augment non fossil fuel based installed electricity generation capacity to over 5,00,000
MW by 2031-32.
• 100% FDI allowed in the power sector has boosted FDI inflow in this sector.
• Coal-fired power plants dominate India’s power generation, accounting for over 65% of the installed capacity.

Gas Based Economy:

Natural gas is primarily composed of methane and is a fossil fuel source. It is commonly found alongside other fossil fuels such
as coal beds and is naturally produced by methanogenic organisms in environments like bogs, landfills, and marshes.

• India’s natural gas consumption is projected to grow by 8% annually, reaching around 34,949 million standard cubic
meters in the current calendar year.
• City Gas Distribution (CGD) accounts for the largest consumption, followed by fertilizers, power, and other industri-
al sectors.
• India’s current share of natural gas in its energy mix is only 6%, significantly lower than the global average of 23%.
• The Indian government has set an ambitious target to increase this share to 15% by 2030.
• 55% of natural gas is imported in the form of Liquified Natural Gas (LNG).
• In India, 80% of natural gas produced by ONGC and Oil India Limited falls under Administered Price Mechanism
(APM) which means the government controls its price.

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Importance of Natural Gas in India

1. Energy Efficiency: Natural gas provides more energy per unit compared to other fossil fuels.
2. Cleaner Fuel: It is an environment -friendly, safer, and more affordable fuel option compared to coal and liquid fuels.
3. Economic Benefits: Compressed Natural Gas (CNG) is cheaper than petrol or diesel, promoting cost savings for consumers.
4. Emission Commitments: India committed to reducing carbon emissions by 33%-35% of 2005 levels by 2030 under the COP-
21 Paris Convention.
5. Diverse Applications: Natural gas can be used for domestic cooking, transportation, and as a fuel in fertilizer industries and
commercial units.
6. Supply Chain Convenience: Natural gas is supplied through pipelines, eliminating the need for cylinder storage in house-
holds and saving space.
7. Global Progress: Switching to natural gas globally has shown positive results. According to the International Energy Agency
(IEA), natural gas surpassed coal in electricity production for the first time.

Challenges:
1. ONGC under APM: In India, 80% of natural gas produced by ONGC and Oil India Limited falls under Administered Price
Mechanism (APM) which means the government controls its price.
2. Limited Reserves: Resources of natural gas are limited in India; 55% of natural gas is imported in the form of Liquified Natural
Gas (LNG) (which is even costlier).
3. Varied Prices: In India, natural gas is sold at varied prices- the gas under administered price regime at $1.79 per mBtu and
other domestic gas in the range of $4.5 to $5.5 per mBtu.
4. Cooperative Federalism Challenges: Pipeline laying has faced obstacles due to land acquisition issues and unviable routes
proposed by state governments, leading to major project delays.
5. Underutilization of Gas-Based Power Capacity: More than half of the natural gas-based power capacity remains idle due to
a lack of domestic gas supply, hindering the transformation of India’s economy to a gas-based one.

Government Initiatives
1. Draft CGD Policy: Released by the Ministry of Petroleum and Natural Gas to facilitate the implementation of CGD networks
and value-added services in states.
2. CNG/LNG as Preferred Fuel in Public Transportation: Encouraging state transport corporations to prioritize CNG/LNG
buses to promote cleaner fuel usage.
3. $60bn Investment Plan: Significant investment in gas pipeline and terminal infrastructure.
4. National Gas Grid: Aims to remove regional imbalance, connect gas sources to demand centers, and develop CGD networks.
5. Urja Ganga Project: Gas pipeline project by GAIL to transport gas to various regions.
6. Initiatives for Energy Security: Bio-CNG policy, SATAT initiative, and policy guidelines for exploration and exploitation of
unconventional hydrocarbons.
7. Regulatory Framework Enhancement: PNGRB’s role in granting authorization for CGD networks to expand coverage and
ensure availability of CNG/PNG.

Way Forward
1. Seizing Opportunities: India should take advantage of low gas prices and enter into contracts with gas-rich countries
through pipelines.
2. Aggressive Reforms: More dynamic reforms are needed, including subsidy restructuring and improved production.
3. Empowering Producers and Buyers: Allowing greater control over pricing and marketing, and introducing e-bidding systems.
4. Focus on Electricity: Encouraging greater reliance on electricity as a cleaner alternative to natural gas and other fuels.
5. Government as Facilitator: The government should facilitate resource development, improve quality and quantity, and
reduce import dependence.
6. Subsidy Reforms: Directly transferring fertilizer subsidies to farmers’ accounts and granting marketing and pricing freedom
to the fertilizer industry.
7. Extending Policies: The policy reforms should cover the entire gas sector, moving away from administrative pricing mechanisms.
8. Effective Implementation: Governments play a crucial role in driving energy sector growth, and India’s gas market is still in
its early stages. Ensuring effective implementation of policies is essential for the transition to a gas-based economy.

Kirith Parikh Panel recommendations on Gas pricing:

• Fixed Ceiling pricing for APM gas from old fields.
• Market determined Pricing System by 2027.
• Linking gas price on a nomination basis to 10% of the cost of imported crude oil prices.
• Ceiling rate to be increased by $0.5 per mmBtu annually.
• Not tinkering with the existing pricing formula.
• Natural gas in the GST regime by subsuming excise duty and varying rates of VAT. Setting up a mechanism similar to
the compensation cess regime to address the issue of loss of concern.
• No Cut Category and city gas to get top priority in the allocation of APM gas.
• Removal of Caps on gas prices within three years.

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Shale Gas:
Shale gas is a form of natural gas (mostly methane), found underground in shale
rock. The gas is extracted using a process called hydraulic fracturing, or frack-
ing, which involves injecting high-pressure water, sand, and chemicals into the
shale formation to crack it.
1. The gum made from Cluster bean (Guar) seed is used in the extraction
of shale gas.
2. Shale is a fine-grained, sedimentary rock formed as a result of the
compaction of clay, silt, mud and organic matter over time.
3. Shales were deposited in ancient seas, river deltas, lakes and lagoons
and found at both the Earth’s surface and deep underground.

Shale gas extraction: US vs INDIA:

1. India suffers from physical and economic water scarcity whereas the
U.S. do not have the same water worries.
2. In the US, the natural gas department is exempt from scrutiny for
chemical injection in the ground. There is no such legislation in India.
3. The US has mapped all its shale reserves. In India there is clarity on the
exact recoverable shale reserves.
4. Government-issued leases for conventional petroleum exploration do not include unconventional sources such as
shale gas.
5. All locations in the US are well connected with gas pipelines. Bulk of the reserves in eastern India lack the necessary net-
work of pipelines to transport the gas.

Distribution of shale gas across the world:

Measures taken by Government

1. Hydrocarbon Exploration and Licensing Policy (HELP) in 2016, which allows for a uniform licensing regime covering conven-
tional and unconventional resources, including shale gas.
2. PSUs like ONGC and Oil India Limited have been granted permission to explore shale gas within their existing oil and gas
blocks.
3. Guidelines for Environmental Management during Shale Gas/Oil Exploration and Production.

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CHAPTER 4

Population and
Migration In India

PYQs
1. Why do large cities tend to attract more migrants than smaller towns? Discuss in the light of conditions in developing
countries. 2024
2. What is the concept of a ‘demographic winter’? Is the world moving towards such a situation? Elaborate. 2024
3. Why did human development fail to keep pace with economic development in India? 2023
4. Discuss the main objectives of Population Education and point out the measures to achieve them in India in detail.
2021
5. The COVID-19 pandemic accelerated class inequalities and poverty in India. Comment. 2020
6. Mention core strategies for the transformation of aspirational districts in India and explain the nature of convergence,
collaboration and competition for its success. 2018
7. Critically examine whether growing population is the cause of poverty OR poverty is the main cause of population
increase in India. 2015
8. Discuss the changes in the trends of labour migration within and outside India in the last four decades. 2015

Key Facts and Data:

• India’s population is approximately 1.44 billion, making it the most populous country in the world, having overtak-
en China in mid-2023.
• India’s population is expected to grow by 25% from 1.21 billion in 2011 to 1.52 billion in 2036.
• Distribution of rural and urban population is 65% and 35% respectively.
• The TFR is anticipated to decrease from 2.1 in 2019 to 1.29 by 2050, as per a study published in The Lancet.
• The number of individuals over 65 years of age worldwide is estimated to reach 2.37 billion by 2100, compared to
703 million in 2019.
• The population density of India is 492 per Km²

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Phases of population growth in India:

Growth of population in India is the change in the number of people living in a particular area between two points of time. Its
rate is expressed in percentage. The growth rate of population in India over the last one century has been caused by annual
birth rate and death rate and rate of migration and thereby shows different trends.

There are four distinct phases of growth identified within the last century:
1. Phase I: The period from 1901-1921 is referred to as a period of stagnant or stationary phase of growth of population in
India, since in this period growth rate was extremely low, even recording a negative growth rate during 1911-1921. Both
the birth rate and death rate were high keeping the rate of increase low. Poor health and medical services, illiteracy of
people at large and inefficient distribution system of food and other basic necessities were largely responsible for high birth
and death rates in this period.
2. Phase II: The decades 1921-1951 are referred to as the period of steady population growth in India. 1921 is considered
as the year of Demographic divide, as the growth rate has changed from being zero to substantially positive. An overall im-
provement in health and sanitation throughout the country brought down the mortality rate. The crude birth rate remained
high in this period leading to higher growth rate than the previous phase.
3. Phase III: The decades 1951-1981 are referred to as the period of population explosion in India, which was caused by
a rapid fall in the mortality rate but a high fertility rate of population in India. Developmental activities were introduced
through a centralized planning process and the economy started showing up, ensuring the improvement of living condi-
tions of people at large. Increased international migration bringing in Tibetans, Bangladeshis, Nepalis and even people
from Pakistan contributed to the high growth rate.
4. Phase IV: In the post 1981 till present, the growth rate of population in India though remained high, has started slowing
down gradually. A downward trend of crude birth rate is held responsible for such a population growth. This was, in turn,
affected by an increase in the mean age at marriage, improving quality of life particularly education of females in the
country.

Factors responsible for high population growth in india:

1. Social Factors
• High Fertility Norms and Traditions
− Cultural ideal of large families, often reinforced by
religious or patriarchal values.
− Limited awareness or access to modern contraceptive
methods.
− TFR remains high in states like Bihar (2.98) and Uttar
Pradesh (2.35), per NFHS-5.
• Low Female Literacy and Empowerment
− Women’s education is strongly correlated with fertil- i-
ty decline.
− Lower awareness about reproductive rights and delayed
marriage.
− Female literacy in Bihar is ~61% vs 77% national
average (Census 2011).
• Child Marriage and Early Marriage
− Extends the reproductive span of women.
− NFHS-5 shows 23% of women aged 20–24 were married before age 18.

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• Declining Mortality Rates

− Improved healthcare, immunization, and sanitation have reduced infant and child mortality.
− India infant mortality rate for 2025 is 24.98, a 3.18% decline from 2024.

2. Cultural and Religious Factors

• Son Meta-Preference
− Families continue having children until a male child is born.
− Sex ratio at birth in Uttar Pradesh: ~903 females per 1000 males (NFHS-5).
• Religious and Social Beliefs
− Some communities see procreation as a religious duty, hesitation or resistance to contraception on religious grounds.
− Eg- Pockets of resistance to family planning in rural Bihar and western UP.

3. Economic Factors
• Poverty and Lack of Social Security
− Children seen as future earners and old-age security, especially in rural/agrarian settings.
− Eg- Poorer districts like Sitamarhi and Bahraich exhibit high TFR and child labor.
• Children as Economic Assets
− In informal economies, more children mean more labor force for farms or family businesses.
− The number of working children in India in the age group 5-14 years is 10.1 million

4. Inadequate Use of Family Planning

• Low Contraceptive Prevalence Rate (CPR)
− Social stigma, and male opposition hinder adoption, limited availability and accessibility.
− Data: NFHS-5 shows only 56.5% modern contraceptive use nationally.
• Gender Inequality
− Limited reproductive choices for women; decisions made by male or family elders.
− According to NFHS-5, just 10% of women in India are independently able to make decisions about their own health.

5. Policy and Governance Factors

• Weak Policy Implementation
− India has had population policies (1976, 2000), but implementation is uneven across states.
− Eg- Kerala and Tamil Nadu achieved replacement fertility through robust health and education policies, while BIMA-
RU states lag.
• Absence of Uniform Population Strategy
− India lacks a comprehensive, community-sensitive, rights-based national strategy.
− Attempts at coercive measures in the past (Eg- Emergency sterilization) created mistrust.

Consequences of high population growth:

Positive Negative
1. Demographic Dividend: India’s youth bulge 1. Resource Strain: Pressure on Food, Water, Energy. Per capita avail-
(median age ~29) offers potential for rapid ability of natural resources declines. Eg- Bengaluru faces recur-
growth if leveraged through skill development. ring water crises due to urban overpopulation and groundwater
Window of opportunity lasts till ~2040. depletion.
2. Large Domestic Market: Consumption-driven 2. Infrastructure Overload: Transport, Housing, Sanitation, Health get
economy benefits from a vast, diverse customer overburdened. Inadequate infrastructure leads to slums, pollution,
base. Fuels demand in FMCG, digital services, and disease spread. Eg- Dharavi, Mumbai, Asia’s largest slum,
real estate, and mobility sectors. exemplifies unplanned urban expansion.
3. Global Labour Exporter: India can supply skilled 3. Unemployment and Underemployment: Job creation fails to match
manpower to aging societies in Europe, Japan, workforce growth, leading to informal employment. Eg- India adds 1
and North America. Eg- India is a top source million job seekers per month, but quality job creation lags.
of IT professionals and healthcare workers 4. Environmental Degradation: Overconsumption of resources leads
globally. to pollution, deforestation, and biodiversity loss. Eg- Delhi’s air pol-
4. Services and Outsourcing Hub: Abundant hu- lution worsened by construction, vehicular load, and population
man capital has enabled India to become a global density.
IT and BPO leader. Eg- India’s $250+ billion IT 5. Poverty and Inequality: Population growth exacerbates poverty,
sector relies heavily on population advantage. especially in rural and high-fertility regions. Eg- BIMARU states have
5. Geopolitical Leverage: A large population higher TFR and lower HDI compared to Kerala or Tamil Nadu.
enhances India’s voice in global forums like G20, 6. Food Insecurity: Demand for food outpaces agricultural productivity.
BRICS, and climate negotiations. India must increase crop yields sustainably to feed its population.

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Uneven Population Distribution in India:

1. Temporal: In 1951, the population density of India was 117 persons per square kilometre. By 2001, it had increased to
324 persons per square kilometre. By 2011, it had increased further to 382 persons per sq kilometre. This means that the
population density of India has more than tripled in the last 70 years
a. According to the UN, India’s population is expected to grow for the next three decades, reaching 166.8 crore by
2050. The UN’s “medium variant” projection estimates that India’s population will peak at 1.7 billion people in
2064.
b. Presently the population density in India according to the Worldometer is 492 people per square kilometer. The
population density of India in 2021 was 428.19 people per square kilometer, a 0.8% increase from 2020.
2. Spatial: Based on state-level data, India’s population density can be divided into three broad zones: high-density, moder-
ate-density, and low-density areas.
a. Areas of extremely low density: Density below 100 people per square kilometre.
• Arunachal Pradesh (17), Mizoram, Andaman & Nicobar, and Sikkim (86) have densities below 100
people per square kilometre.
• Arunachal Pradesh, Mizoram, and Sikkim have low density due to natural factors like poor accessibility,
harsh climate, and topography, while Andaman & Nicobar have tropical hot & humid climate, disease,
dense forests, and tribal people, and lack of economic development.
b. Moderate Density Areas: States and Union Territories with a population density of 100-400 people per square km
are considered moderately dense.
• This region is the largest in the country in terms of area.
• Moderate population density is typically found in places with challenging topography, poor precipita-
tion.
c. High-Density Areas: Areas with a population density of above 400 people per square kilometre are classified as
high density.
• Fertile land and heavy precipitation in places like Kerala, West Bengal, and Tamil Nadu lead to high
density because of fertile soil leading to food production for a large population.
• The situation differs significantly in Union Territories such as Delhi, Chandigarh, and Pondicherry.
These urbanised regions provide career prospects in industrial and service industries. Thus, dense
populations are found in places with excellent land and abundant work prospects.

Based on population growth rate:

The States like Kerala, Karnataka, Tamil Nadu, Andhra Pradesh, Odisha, Puducherry, and Goa show a low rate of growth not
exceeding 20 per cent over the decade. (1991-2001). The percentage decadal growth rates of the six most populous States, namely,
Uttar Pradesh, Maharashtra, Bihar, West Bengal, Andhra Pradesh and Madhya Pradesh have all fallen during 2001-2011 com-
pared to 1991-2001.
STATES WITH LOW GROWTH RATES STATES WITH HIGH GROWTH RATES
The States like Kerala, Karnataka, Tamil Nadu, A continuous belt of states from west to east in the north-west, north,
Andhra Pradesh, Odisha, Puducherry, and Goa show and north central parts of the country has a relatively higher growth
a low rate of growth not exceeding 20 per cent over the rate than the southern states.
decade.
It is in this belt comprising Gujarat, Maharashtra, Rajasthan, Punjab,
Kerala registered the lowest growth rate (9.4) not Haryana, Uttar Pradesh, Uttarakhand, Madhya Pradesh, Sikkim,
only in this group of states but also in the country as a Assam, West Bengal, Bihar, Chhattisgarh, and Jharkhand, the growth
whole. rate on the average remained 20-25 per cent.
Nagaland experienced a decline in population.

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Reasons for uneven population distribution in india:

1. Physical Factors:
a. Relief and Topography:
• Plains support high population due to flat land,
fertile soil, and ease of construction and farm-
ing. Eg- Indo-Gangetic Plain – Uttar Pradesh,
Bihar, and West Bengal are densely populat-
ed.
• Hilly and mountainous areas have low popu-
lation due to difficult terrain and poor acces-
sibility. Eg- Himalayan Region – Arunachal
Pradesh, Sikkim, and parts of Uttarakhand
have sparse populations.
b. Climate: Extreme climates (arid, semi-arid, or cold) deter
dense populations. Eg- Thar Desert (Rajasthan) and
cold deserts (Ladakh) have low population density.
2. Economic Factors:
a. Industrialization and Urbanization: Industrial belts
attract large populations for employment opportunities.
Eg- Mumbai-Pune belt, Delhi NCR, Bengaluru, Chen-
nai, and Ahmedabad.
b. Infrastructure Development: Areas with better roads,
electricity, schools, and hospitals attract and sustain
higher populations. Eg- Southern states like Tamil
Nadu and Kerala have relatively balanced population
distribution.
3. Social and Cultural Factors:
a. Historical Settlements and Cultural Preference: Regions with long-standing civilizations have naturally evolved
into dense population centers. Eg- Varanasi and Kolkata have been inhabited for centuries.
b. Caste and Community Preferences: Some communities prefer living in particular areas due to social and cultural
cohesion. Eg- Tribal populations are mostly confined to central India (Chhattisgarh, Jharkhand, Odisha), often
away from mainstream settlements.
4. Political and Administrative Factors:
a. Government Policies: Urban-centric development and special economic zones draw population. Eg- Gujarat’s
industrial policy has led to denser settlements in places like Surat and Vadodara.
b. Law and Order, Border Issues: Areas affected by insurgency, border conflicts, or poor law and order have lower pop-
ulation. Eg- Jammu & Kashmir, border areas of North-East India, parts of Chhattisgarh affected by Naxalism.

Age Composition of India:

Age structure of population refers to the way a population is distributed over all its many age groups. It is a demographic concept
that specifies how different age cohorts: the children, working-age adults, and the elderly are represented in any given population.

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Features:
1. The country is transitioning from demographic transition where birth rates are dropping.
2. As birth and death rates decrease, the proportion of old people is rising overtime.Over 50 years there has been a 2.9 points
gain.
3. Kerala is in the last stage of demographic transition and has an age mix similar to modern countries with a children popula-
tion of 23.44% and elderly population of 12.55%.
4. Similar trend is followed by states like Goa, Punjab, Himachal Pradesh, Tamil Nadu etc.
5. The lowest percentage of children is in Goa i.e. 21.81% and on the other hand states like Bihar, Meghalaya, Jharkhand,
Uttar Pradesh, Arunachal Pradesh have the children population close to 35-40%, which shows the first or second stage of
demographic transition in these states.

Ageing in India:
1. The number of individuals aged 60 years and older is
expected to more than double from 10 crore (100 million) in
2011 to 23 crore (230 million) by 2036, with their share of
the total population rising from 8.4% to 14.9%.
2. In Kerala, the proportion of individuals aged 60 and older is
projected to rise from 13% in 2011 to 23% by 2036, meaning
nearly 1 in 4 individuals will be in this age group. In Uttar
Pradesh, the share of the 60+ population is expected to rise
from 7% in 2011 to 12% in 2036.
3. North-South Divide: The increase in the proportion of people aged 60 and older will be smaller in Northern states com-
pared to the South. Southern states transitioned to lower fertility rates earlier. E.g., Uttar Pradesh is projected to reach the
Replacement Level of Fertility (2.1 children per woman) in 2025, over two decades later than Andhra Pradesh (2004).

Causes of Ageing and Shrinking Population

1. Contraception and Family Planning: The increased availability of contraception and abortion services allows individuals to
have greater control over their reproductive choices. The overall contraception prevalence rate has increased to 67% from
54% in NFHS-5.
2. Women’s Economic Participation: As women have increasingly entered the workforce, many have chosen to delay childbirth
or forego having children altogether. India’s Female Labour Force Participation Rate (FLFPR) is at 41.7% (PLFS 2023-24).
3. Improved Child Survival Rates: According to the World Health Organization (WHO), the under-five mortality rate (deaths
per 1,000 live births) in India declined. Since 2000, India has achieved an under-five mortality reduction of 70% and a
neonatal mortality reduction of 61%.
4. Urbanisation: As more people move to urban areas, the cost of living often rises, making it more difficult for families to
afford children. Urban lifestyles may also prioritise careers over family expansion.
5. Migration: Indian migration due to foreign countries like UAE and USA also leads to decline in India’s population. India has
the world’s largest emigrant population, with over 18.5 million people of Indian origin living overseas in 2024

Challenges associated with ageing population:

1. Social Isolation: The shift to nuclear families and rising urban migration has led to 20% of urban and 10% of rural elderly
living alone, increasing loneliness (NSO 2021).
2. Elder Abuse: Nearly 50% of elderly face emotional, physical, or financial abuse, yet only 15% report it due to fear and
dependency (HelpAge India 2023).
3. Economic Vulnerability: Limited pension coverage, with only 10% of elderly and 5% in rural areas having financial security
(PFRDA 2023), makes many elderly dependent on family or informal work.
4. Health Issues: According to the Longitudinal Ageing Survey in India (LASI), the majority of those above 60 suffer from
NCDs like diabetes, hypertension, and cardiovascular conditions. India is home to 1/4th of the world’s elderly but gets
only 20 geriatricians/year.
5. Feminization of Ageing: Higher life expectancy leaves over 50% of elderly women as widows, facing social exclusion,
lack of property rights, and financial insecurity (Census 2011).
6. Higher Public Expenditure: The cost of public programs for health care, pensions, and long-term care will increase
significantly as populations age.
7. Slowing GDP Growth: Eg. In the US, the growth of the 20 to 64-year-old population is expected to decrease from 1.24%
per year (1975-2015) to only 0.29% (2015-2055) leading to a corresponding decline in the growth rate of GDP and
aggregate consumption.
8. High Dependency Ratio: According to the World Bank collection of development indicators, India’s current age depen-
dency ratio of 47% in 2023 is expected to rise significantly.

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Best Practices:
1. China’s Three-Child Policy: In 2016, China moved to allow its citizens to have two children and in 2021, China an-
nounced that families are permitted to have three children. From 1980 to 2016, China imposed a one-child policy, which
slowed population growth.
2. Japan’s Parental Leave: It includes mandating twelve-month parental leave, offering direct financial aid to parents, and
investing heavily in subsidised childcare.
3. Extended Retirement Age: Some countries, such as France and the Netherlands, extended the retirement age or the
age at which people are eligible for pension benefits to alleviate pressure on pension systems.
4. Open Immigration Policy: Australia, Canada, and other countries have adopted more open immigration policies to
counter labour shortages due to their declining populations.

Measures that can be Adopted to Enhance Elderly Care in India:

1. Silver Economy Boost: Implement a national “Silver Skills” program to retrain and employ seniors in sectors like
childcare, mentorship roles. Create tax incentives for companies hiring workers over 60. For example, Singapore’s
successful “WorkPro” scheme, which provides grants to companies that implement age-friendly practices.
2. Tech-Empowered Eldercare: Launch a nationwide “Digital Dada-Dadi” initiative to improve digital literacy among
the elderly . Additionally, create a network of “Digital Sahayaks” - young volunteers who can provide tech support to
the elderly in their communities.
3. Community Care Hubs: Establish formalized “Varishtha Seva Kendras” (Senior Service Centers) in every urban
ward and rural panchayat, modeled after Japan’s successful community-based integrated care system.
4. Geriatric Health Corps: Create a cadre of “Geriatric Health Workers” within the existing ASHA (Accredited Social
Health Activist) framework.
5. Improving Financial Security Net: Introduce a “Senior Citizen Savings Bond” with higher interest rates to encour-
age financial planning for old age. For example, Japan’s Long-Term Care Insurance system, which covers a range of
elderly care services, could be adapted to the Indian context.
6. Elder Rights Protection: Establish dedicated “Elder Protection Units” in police stations to handle cases of elder
abuse and exploitation.
7. Age-Friendly Cities: Develop a national “Age-Friendly City” certification program with guidelines for accessible
public spaces, transportation, and services.
8. Elderly Nutrition Mission: Launch a “Poshan for Elders” scheme, extending the principles of the successful child
nutrition program to the elderly.

Sex Ratio in India:

Sex Ratio is defined as the number of females per thousand males. According to the 2011 census, the sex ratio is 943 females
per thousand males. However, according to NFHS-5, the sex ratio is 1020 for the country as a whole, with sex ratio rural at
1037 and urban at 985.

Regional Variations in Sex Ratio in India

1. Green Revolution Areas: States like Punjab (895), Haryana
(879) and parts of western Uttar Pradesh continue to record
some of the lowest sex ratios in India (Census 2011). Reasons:
a. Mechanisation and commercialization of agriculture
during the Green Revolution marginalized women’s
traditional role in farming.
b. Sex-selective practices increased as families pre-
ferred male heirs to maintain landholding sizes.
c. District-level data show sex ratios below 850 in
some agriculturally prosperous districts of Haryana
and Punjab.
2. Prosperous and Urban Areas: States such as Delhi (868),
Gujarat (919), and Himachal Pradesh (972) exhibit skewed
child sex ratios despite higher literacy and income levels.
Reasons:
a. National Family Health Survey (NFHS-5, 2019-21)
reveals that even among the richest quintile house-
holds, the child sex ratio remains below the national average.
b. Preference for small families with at least one male child has led to misuse of prenatal diagnostic techniques.

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3. Tribal Areas: Tribal-dominated states like Meghalaya (989) and Nagaland (931) have higher sex ratios compared to the
national average. Reasons:
a. Tribal societies are relatively egalitarian.
b. NFHS data show lower incidence of sex-selective abortions and greater female workforce participation in tribal areas.
c. Missionary activities have promoted education and healthcare access,helping reduce gender bias.
4. Southern States: States like Kerala (1084) and Tamil Nadu (996) report the highest sex ratios among major Indian
states. Reasons:
a. Kerala’s high female literacy rate (92%) and better healthcare contribute to a healthier sex ratio.
b. Tamil Nadu’s targeted schemes like Cradle Baby Scheme, Girl Child Protection Scheme, and education incentives
have helped reduce gender discrimination.
5. Western and Central States: States like Maharashtra (929) and Gujarat (919) show intra-state variations. For example,
Mumbai suburban district has one of the lowest sex ratios (857) despite being an urban, literate region.

Factors Shaping the Sex Ratio in India:

1. Social and Cultural Factors: Son Preference:
a. As per NFHS-5, 23% of women (age 15-49) still express a preference for sons over daughters.
b. Dowry: Economic burden of dowry reinforces male preference, especially in northern and central India.
c. Patriarchal Norms: In many communities, sons are seen as carriers of lineage and old-age support.
2. Economic Factors:
a. Agricultural Societies: Preference for male labor persists in northern India, especially in states like Bihar, Rajas-
than, and Uttar Pradesh.
b. Urban Migration: Men migrate for jobs, distorting local sex ratios in source areas and leading to ‘marriage squeeze’.
3. Educational Factors:
a. States with high female literacy tend to have better sex ratios. For example: Kerala (Female Literacy: 92%) – Sex
Ratio: 1084, Bihar (Female Literacy: 60%) – Sex Ratio: 918 .
b. NFHS-5 reveals that women with secondary or higher education are more likely to have balanced family planning
preferences.
4. Government Policies:
a. PCPNDT Act (1994): Bans sex selection and prenatal gender testing. However, enforcement remains inconsistent.
b. Beti Bachao Beti Padhao (BBBP): Launched in 2015 across 640 districts.In districts like Haryana, sex ratio im-
proved from 871 (2014) to 914 (2022) (Source: Ministry of WCD).
c. Sukanya Samriddhi Yojana: Promotes financial security for the girl child.
d. Ladli Scheme (Delhi) and Dhanlakshmi Scheme provide financial incentives to discourage gender bias.

Population and Poverty:

Population as the Cause of Poverty:
1. Resource Strain: India has only 2.4% of the world’s land area sup-
porting about 17.7% of the global population (Census 2011), the
per capita availability of resources like food, land, water, and minerals is
significantly reduced.
2. Overburdened Infrastructure: A rapidly growing population strains
infrastructure and public services, leading to inadequate access to ed-
ucation, healthcare, and sanitation. The doctor-to-population ratio
is approximately 1:1,445, lower than the WHO recommendation of
1:1,000.
3. Labor Market Saturation: The labor force grows with the population,
but job creation has not kept pace, leading to unemployment and underemployment. As per the Periodic Labour Force Survey
(PLFS) 2018-19, the unemployment rate was 5.8%
4. Low Wages: A surplus labor force leads to a large informal sector with low wages and job insecurity. Over 81% of employed
people work in the informal sector (NSSO, 2011-12).
5. Urban Slums: Rapid urbanization without adequate planning results in slums with poor living conditions. About 65 million
people lived in slums in 2011, representing 17.4% of urban households (Census 2011).

Poverty as the Cause of Population Increase

1. Lack of Awareness: Poor people often lack access to education and family planning knowledge. According to NFHS-5, 97%
of women and 97.5% of men are aware of modern contraceptives.
2. Child as Economic Asset: Children are seen as income earners and support for old age in poor families. Census 2011 data
indicates that approximately 10.1 million children (3.9% of the total child population) in the 5-14 age group were working.
3. High Infant Mortality: Families have more children to offset child mortality risks.
4. Early Marriage and Fertility: Poverty leads to early marriage and higher fertility rates due to lack of alternatives. 23.3% of
women aged 20-24 years were married before age 18 years-NFHS 5.

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Human Development in India

Human development is a multifaceted concept that encompasses health, education, and living standards to enhance individual
capabilities and ensure well-being.
According to the Human Development Report 2023-2024, India’s HDI value for 2022 stood at 0.644, placing it in the medium
human development category and ranking 134th out of 193 countries and territories — an improvement from 135th in 2021.

Key Findings of the report:

India’s HDI Rank & Value Ranked 130 out of 193 countries in 2023, improving from 133 in 2022; HDI value increased from
0.676 (2022) to 0.685 (2023), approaching the high human development threshold (≥0.700).
Health Life expectancy at birth reached 72 years in 2023, the highest since the index was introduced in
1990.
Education Expected years of schooling: 13 years; Mean years of schooling: 6.9 years.
Income Gross National Income (GNI) per capita: $9,047 in 2023, up from $2,167 in 1990.
Gender & Inequality Female labour force participation: 41.7%; however, income and gender disparities persist, leading to
a 30.7% loss in HDI due to inequality.
Global Comparison India shares its rank with Bangladesh (130); China (78), Sri Lanka (89), and Bhutan (125) rank high-
er; Nepal (145) and Pakistan (168) rank lower.
AI & Development India retains 20% of global AI researchers, up from nearly zero in 2019, highlighting its growing role
in AI development.
Multidimensional Poverty 135 million Indians exited multidimensional poverty between 2015–16 and 2019–21; however, re-
gional and social disparities remain significant.

Challenges related to human development in India:

1. Income Inequality: Despite economic growth, India faces significant income inequality. Eg- India’s consumption-based Gini
index was 25.5 in 2022-23. (PIB)
2. Gender Inequality: Gender inequality remains a significant challenge. Eg- India ranks 102nd in the Gender Inequality
Index (GII) 2023.
3. Regional Disparities: Development is uneven across India. Eg- states like Kerala and Tamil Nadu perform well in HDI indi-
cators, while states like Bihar and Uttar Pradesh lag behind.
4. Poor Health Outcomes in Rural Areas: Although life expectancy has improved to 72 years nationally, rural areas continue
to face significant health challenges.
5. Multidimensional Poverty: 135 million people escaped multidimensional poverty, but 11.28% of India’s population still lives
in poverty (2022-23, NITI Aayog).
6. Environmental Sustainability: Environmental degradation is a growing challenge for human development in India. Eg- 13 of
the world’s 20 most polluted cities are in India (World Air Quality Report 2024).

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AI as a catalyst for human development in india:

1. Boosting Economic Growth: AI supports automation in agriculture, manufacturing, and services. Eg- AI is projected to add
₹33.8 lakh crore to India’s GDP by 2030. (Google-NASSCOM)
2. Advancing Healthcare: Enhance rural healthcare by facilitating early disease detection and ensuring accurate diagnostics,
particularly in underserved areas. Eg- Microsoft’s AI Network and Qure.ai.
3. Transforming Education: Offer real-time, adaptive learning experiences that help bridge learning gaps for students in under-
served regions. Eg- ‘DIKSHA’ Platforms.
4. Strengthening Governance: Helps to detect mule accounts in digital fraud and promotes inclusive e-governance through
RBI’s MuleHunter.AI and Bhashini project.
5. Promoting Inclusion: AI-driven dashboards in schemes like the Aspirational Districts Programme help identify service
gaps and monitor development outcomes for marginalised communities.

Government Initiatives:
1. Ayushman Bharat – PM-JAY: To ensure universal health coverage by providing free health insurance of ₹5 lakh per family
each year for secondary and tertiary hospitalisation.
2. Samagra Shiksha Abhiyan: To holistically strengthen school education from pre-primary to Class 12, with a focus on ac-
cess, equity, and quality.
3. National Education Policy (NEP): Reform India’s education system to promote foundational learning and critical thinking,
targeting a 50% Gross Enrollment Ratio in higher education by 2035.
4. Pradhan Mantri Kaushal Vikas Yojana (PMKVY): To equip youth with market-relevant skills and boost employment through
short-term training and certification.
5. MGNREGA: To guarantee 100 days of wage employment per year for rural households engaged in unskilled labor.
6. Poshan Abhiyaan: To combat malnutrition by reducing stunting, wasting, and anemia among women and children.
7. Pradhan Mantri Jan Dhan Yojana: To attain universal financial inclusion by offering affordable banking services to the un-
banked.

Way Forward:
1. Improving Gender Equality and Economic Empowerment: Increase female labor force participation by developing skills and
improving access to finance for women, such as through MUDRA Yojana and Stand-Up India.
2. Focused Regional Development: Address regional disparities by investing in underperforming states like Bihar and Uttar
Pradesh. Eg- the Aspirational Districts Programme (ADP).
3. Boosting Healthcare and Rural Infrastructure: Improve healthcare access, particularly in rural areas, by raising the health-
care budget to 3% from the current 1.2%.
4. Enhancing Education and Skill Development: Enhance education quality, especially in rural and underserved areas, to
achieve a 50% Gross Enrollment Ratio in higher education by 2035.
5. Promoting Sustainable Development: Invest in clean energy, climate-resilient agriculture, and water management for envi-
ronmental sustainability. Eg- include the National Clean Energy Fund and Swachh Bharat Abhiyan.

Demographic Dividend in India:

According to United Nation Population Fund, Demograph-
ic Dividend is defined as, the economic growth potential
that can result from a change in population age structure
where shares of the working age (15-64 years) population
is greater than non-working age share.

According to the McKinsey Global Institute’s 2023 report,

India has a 33-year window to leverage its demographic
dividend—making investment in human capital and inclusive
job creation an urgent national priority.

Potential Benefits of Demo-

graphic Dividend in India
1. Accelerated Economic Growth:
a. IMF estimates India’s demographic dividend
could add 2 percentage points annually to
per capita GDP growth for two decades.
China’s Eg- Between 1980–2010, demograph-
ic shifts contributed to one-third of China’s
economic growth.

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2. Enhanced Savings and Capital Formation:

a. Fewer dependents → higher household savings → increased capital accumulation and investment.
b. India’s gross savings rate rose from 23.5% (1991) to 30.2% (2023), boosting infrastructure, innovation, and finan-
cial depth.
3. Fiscal Dividend:
a. Lower dependency ratio reduces government spending on basic services (e.g. childcare, elderly care). Dependency ratio
currently stands at 46.3%, expected to decline further by 2030.
4. Labor Force Expansion:
a. LFPR in usual status (ps+ss) for persons of age 15 years and above has increased from 57.9% during July 2022 –
June 2023 to 60.1% during July 2023 – June 2024.
b. Eg- India’s expanding gig economy and IT-enabled services employ millions of young professionals.
5. Boost to Consumption and Demand:
a. McKinsey projects India will account for 16% of global consumption at PPP by 2050.
b. Demand for housing, mobility, services, and education surges with urban youth aspirations.
6. Rise in Innovation and Entrepreneurship:
a. India’s Startup Ecosystem: Over 60,000 startups and more than 100 unicorns.
b. India is the third-largest startup hub after the USA and China.
7. Global Human Resource Exporter:
a. India can cater to aging societies in Europe, Japan, and the US through skilled migration.
b. In 2024, India received a record $129 billion, capturing 14.3% of global remittance flows, the highest share
ever.

Challenges in Leveraging India’s Demographic Dividend

1. Social Challenges
• Low Human Development Indicators
− India ranks 134th out of 193 on the UNDP Human Development Index 2023–24.
− HDI score: 0.644 (2022) → improved to 0.685 (2023), but still below global average.
• Hunger and Malnutrition
− India ranked 105th out of 125 in the Global Hunger Index 2024.
− High rates of child stunting (35.5%), wasting (19.3%), and anaemia (57%) in women (NFHS-5).
• Gender Disparities
− While the female Labour Force Participation Rate has risen to 41.7% but still remains significantly lower than their male
counterparts.

2. Economic Challenges
• Insufficient Job Creation
− India faces jobless growth—GDP increases but employment does not rise proportionally.
− Unemployment Rate for youth (15–29 years): ~12% nationally (CMIE 2024).
• Skill Mismatch
− According to the India Employment Report 2024, one in every three youngsters falls under the NEET(Not in Employ-
ment, Education, or Training) category as of 2022.
− Economic Survey 2023-24: Only 51% graduates employable
• Informal Economy Dominance
− Around 92% of India’s workforce is engaged in informal employment with no social security, low wages, and vulnerability to
economic shocks.

3. Political and Governance Barriers

• Policy Shortcomings
− Lack of continuity, long-term planning, and prioritization of human capital development.
− Focus remains on short-term populist schemes instead of systemic reforms in education, health, and employment.
• Corruption and Administrative Inefficiency
− Leakages in welfare delivery, bureaucratic delays, and implementation deficits plague public programs.

4. Technological and Educational Gaps

• Digital Divide
− Unequal access to the internet, digital tools, and low digital literacy widens urban-rural and rich-poor divides.
• Automation and AI Displacement
− Increasing automation and use of AI in industries threaten low-skill jobs, necessitating reskilling and upskilling of the workforce.

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5. Health and Productivity Constraints

• Poor Health Outcomes
− High disease burden, especially from Non-Communicable Diseases (NCDs) like diabetes and hypertension, impacts work-
force productivity.
• Lack of Universal Healthcare Access
− Despite Ayushman Bharat, rural and poor populations still face accessibility and affordability issues.

6. Environmental and Resource Stress

• Urbanization Pressure
− India’s urban population is expected to grow from 410 million (2014) to 814 million by 2050.
− Unplanned urbanization leads to slums, traffic congestion, and pollution.
− India is expected to add 4 new megacities by 2030, intensifying pressure on civic amenities.
• Resource Scarcity
− Per capita water availability has dropped from 1,816 m³ (2001) to 1,486 m³ (2024) (Central Water Commission), pushing
India toward water stress.
• Climate Change and Pollution
− Environmental degradation, extreme weather events, and poor air quality affect livelihoods and health, especially in
urban areas like Delhi, Bengaluru.

7. Demographic Risks
• Youth Bulge Becoming a Liability
− India’s working-age population increased from 61% (2011) → 64% (2021) → 65% by 2036.
− Without jobs and education, this can lead to unrest, crime, and poverty.
• Rapid Ageing Post-2050
− As per UNFPA India Ageing Report 2023, over 20% of India’s population will be elderly by 2050.
− Challenges: Elder care, pensions, healthcare infrastructure for the aged.

Measures & Reforms to Harness India’s Demographic Dividend

1. Labour Market and Employment Reforms:
a. Resolve Labour Law Bottlenecks: The delay in implementing the four labour codes creates uncertainty. Compli-
ance burdens on MSMEs prevent job creation in labour-intensive sectors like apparel, textiles, toys, etc.
b. As of 2022-23, 45% of the workforce is employed in agriculture contributing only 18% to GDP, while only 9% are in
formal wage employment. Transitioning this workforce is critical to productivity gains.
2. Education and Skilling Reforms:
a. Address Skill Mismatch: Only 4.4% of India’s youth (15–29) are formally skilled (Economic Survey 2023–24).
Public-private partnerships must enable industry-aligned, hands-on skilling through programs like Skill India and
PMKVY.
b. NEP 2020 Implementation: NEP’s focus on foundational and cognitive skills is promising but must be periodi-
cally updated in line with industry needs and the digital economy.
3. Healthcare and Human Capital Investment:
a. Increase Public Health Spending: India spends just 1.2% of GDP on health, one of the lowest among major econ-
omies. Raise this to at least 2.5% to improve life expectancy, productivity, and reduce dependency ratios.
b. Strengthen Nutrition & Maternal Care: India ranked 105th in the Global Hunger Index 2024, and anaemia rates
among women remain high. Scale up POSHAN Abhiyaan, and target adolescent health and nutrition.
4. Gender Equality and Female Participation: Only 24% (ILO, 2022) of women are in the workforce. Promote gender-re-
sponsive policies, safe workplaces, flexible hours, and upskilling programs tailored for women.
5. Infrastructure and Urban Planning:
a. With urban population projected to double to 814 million by 2050, India must avoid unplanned expansion and
invest in sustainable urban ecosystems.
b. Expand BharatNet and 5G penetration to enable digital livelihoods, especially in Tier 2 and rural India.
6. Governance and Inter-State Coordination:
a. Labour, education, and healthcare are concurrent subjects. Reforms must be co-owned by both levels of govern-
ment. Eg- States like Tamil Nadu and Gujarat with strong industrial bases can pilot new labour laws and skill
models.
b. Southern states face an ageing population; Northern and BIMARU states still have demographic bulges. Cre-
ate labour mobility agreements and promote interstate demographic transition cooperation.
As PM Modi stated, “Population control is a form of patriotism,” underlining the importance of sustainable policies to transform
this potential into a powerful force for national progress and global leadership.

“Demographic dividend is not a given—it must be earned through investment in human capital.” — World Bank & UNFPA

“If we fail to equip our youth with education and jobs, we may turn our demographic dividend into a demographic bomb.” — UN-
FPA India, 2023

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Population Policy in India:

National Population Policy (NPP) 2000: The National Population Policy 2000 focuses on population stabilisation for sustainable development,
linking it to improvements in education, sanitation, housing, transport, and women’s empowerment.

Objectives of NPP 2000:

• Immediate Objectives: Address unmet needs for contraception and health infrastructure, and provide integrated ser-
vices for basic reproductive and child health.
• Medium-Term Objectives: Achieve a replacement level fertility by 2010, reducing the Total Fertility Rate (TFR) to 2.1.
• Long-Term Objective: Stabilize the population by 2045.

Key Strategies
• Voluntary Family Planning: The policy adopts a voluntary approach to family planning, promoting informed choice and
awareness rather than coercion.
• Reproductive and Child Health (RCH) Programme: Launched in 1997, this initiative focuses on decentralized planning, em-
phasizing quality family welfare services, safe motherhood, child survival, and control of sexually transmitted infections (STIs).
• Family Welfare Services: Improving access to healthcare for women and children through government and non-government
sectors.
• Public Awareness and Education: Promote small family norms and delayed marriage for girls (preferably after 20 years).

Success: Criticism:
1. The total fertility rate has been reduced to 2.1 1. The policy has faced criticism for being undemocratic as it
restricts citizens’ freedom of choice and their sexual and
2. The unmet needs of contraception have been reduced reproductive liberties.
from 12% in 2000 to 8% in 2021.
2. The policy’s approach to targeting high fertility zones with-
3. MMR has declined to 93 per 1 lakh live births during 2019- out addressing root causes (poverty, education, services) is
21, down from 97 in 2018-20 and 103 in 2017-19. seen as punitive to the poor.
4. Infant Mortality Rate declined from 39 per 1000 live births 3. The policy had a narrow focus since it prioritised steril-
in 2014 to 27 per 1000 live births in 2021 ization and contraceptives above key prerequisites of
population control.

Measures Taken For Population Stabilisation In India:

• National Family Planning Program: provides voluntary and informed choices to the beneficiaries.
− Example: Mission ParivarVikas has been introduced for substantially increasing access to contraceptives and
family planning services.
− Scheme for Home Delivery of contraceptives by ASHAs at doorstep of beneficiaries
• National Rural Health Mission: Government of India has been implementing the National Rural Health Mission since 2005
in line with the policy framework of population stabilization as envisaged in NPP-2000, by helping to create a robust service
delivery mechanism to address the unmet need for family planning.
• Prerna Strategy: Jansankhya Sthirata Kosh (JSK) has launched this strategy for helping to push up the age of marriage of
girls and delay in first child and spacing in second child.
• Santushti Strategy: Under this strategy, Jansankhya Sthirata Kosh, invites private sector gynaecologists and vasectomy
surgeons to conduct sterilization operations in Public Private Partnership mode.
• National Family Planning Indemnity Scheme (NFPIS): under which clients are compensated in the eventualities of death,
complication and failure following sterilisation operations.

Way Forward
• Promoting Female Empowerment and Education: Example: The effective implementation of Beti Bachao Beti Padhao
scheme can help in empowering women to make their own choices especially reproductive choices.
• Improving Healthcare Infrastructure: Example: The Pradhan Mantri Jan Arogya Yojana (PMJAY) could be leveraged for
universal health coverage.
• Awareness through Campaigns: Example: The National Family Planning Program has utilised mass media to spread
awareness about contraceptive methods and reproductive health.
• Incentivising Family Planning: Encouraging people to adopt small family norms through incentives such as tax benefits,
priority in social welfare schemes, or cash rewards can be effective.
• Capitalising on India’s Demographic Dividend: India should invest in skilling its youth to capitalise on its demographic
dividend. By providing skilled workers to countries facing labor shortages, India can strengthen its global position.

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Migration in India:
As per the International Organization for Migration’s definition, a migrant is an individual who is relocating or has relocated across
an international boundary or within a state, departing from their usual place of residence.

• The 2011 Census recorded the number of internal migrants in India at 45.36 crores, which accounted for 37% of the
country’s population at that time.
• Close to 85% of the migration has been within the state.
• According to NSSO surveys, rural-urban migration is the most dominant form of migration and comprises 25.2% of
all internal migration in India, followed by urban-urban (22.9%), urban-rural (17.5%), and rural-rural (4.4%).
• According to the Migration in India (2020-21) survey, 29% of Indians are migrants, which is nearly 400 million.
• According to World Bank data, 35% of Indians lived in cities as of 2021 as compared to 63% in China and 43% in
lower-middle-income countries.
• The annual net migrant flows in India amounted to approximately 1% of the working age population.

Causes of Internal and External Migration in India

Internal Migration
1. Economic Factors:
a. Push Factors: Poverty, unemploy-
ment, low agricultural productivity,
frequent droughts (Eg- Bundelkhand
region), underemployment.
b. Pull Factors: Better employment
in cities, higher wages, access to
industrial/service sector jobs (Eg-
construction jobs in Delhi NCR, IT
jobs in Bengaluru).
2. Socio-Cultural Factors:
a. Marriage is a major driver, particu-
larly for female migration.
b. Family reunification, escaping
caste-based discrimination, or
seeking better educational/health facilities.
3. Environmental Factors: Natural disasters (floods, droughts, cyclones), climate change impacts (migration of around 45
million people by 2050), and developmental displacement (Eg- Sardar Sarovar Dam).
4. Political Factors:
a. Political instability or conflict in certain regions leading to migration for safety.
b. Eg- People migrating from Kashmir due to security concerns.

External Migration
1. Economic Drivers:
a. Pull Factors: Better jobs and pay abroad, especially in Gulf countries (for
blue-collar jobs), the US (IT and medical sectors), Canada, and Europe.
b. Push Factors: Limited job opportunities and poor wage conditions at
home.
2. Socio-Political Factors:
a. Family reunification, higher education, and healthcare access. Eg- Spous-
es or children of Indian-origin citizens settling in countries like the US
or Australia
b. Persecution or insecurity (Eg- refugees from neighboring countries like
Afghanistan or Myanmar). Eg- Refugees fleeing war-torn countries like
Syria or Afghanistan.
3. Reverse Migration:
a. Return of migrants due to job loss, family reasons, or better opportunities at home (as witnessed during the
COVID-19 lockdown).
4. Globalization and Connectivity:
a. Increased global linkages, better communication, and transport infrastructure make international migration more acces-
sible. Eg- IT professionals relocating through multinational job placements.

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Consequences:
Positive Negative
• Remittances: India received $111 billion in • Demographic Imbalance: Skewed sex ratio and aging popula-
remittances in 2022. Internal remittances help tion in villages.
rural families meet basic needs.
• Urban Stress: Overcrowding, slums, pressure on housing, sanita-
• Economic Development: Labor availability in tion, and water supply (Eg- Mumbai, Delhi).
urban areas boosts construction, industry, and
services. Eg- Migration from Kerala to the Gulf • Health and Education Issues: Migrant children face school
has eased local unemployment. dropouts; poor access to healthcare.

• Social Change: Migrants bring new ideas on • Social Tensions: Discrimination, xenophobia, and ethnic clashes
education, family planning, and gender equality. (Eg- Bihar-Maharashtra conflicts).

• Cultural Exchange: Promotes a composite cul- • Environmental Degradation: Unplanned settlements lead to
ture and social integration. Eg- Indian diaspora pollution and land degradation.
influencing global cuisine, arts, and culture.
• Brain Drain: Loss of skilled professionals like doctors, engineers,
• Skill Upgradation: Migration often leads to and scientists to developed nations. Eg- High emigration rates
better training and job skills. Eg- IT professionals among Indian STEM graduates.
returning from the US with advanced expertise.
• Regional Imbalances: High migration from specific regions can
• Diplomatic and Strategic Leverage: A large lead to demographic and development disparities. Eg- Over-de-
diaspora strengthens bilateral ties and enhances pendence on remittances in states like Kerala and Punjab.
soft power. Eg- The Indian diaspora in the US
influencing India–US relations.

Large cities attract more migrants than small cities:

1. Economic Opportunities: large cities offer a wide range of jobs and higher wages in manufacturing and services sectors as
compared to smaller towns. Eg- Cities like Mumbai and Bengaluru attract rural youth seeking employment in finance,
tech, and manufacturing.
2. Access to Better Services: superior healthcare, education facilities in large cities compared to rural and small towns make
way for more ease of living. Eg.Delhi offers premier institutes like AIIMS and DU, drawing migrants for education and
treatment.
3. Superior Infrastructure: better transportation, utilities, and amenities in large cities that enhance quality of life, making them
appealing destinations for migrants. Eg- Nairobi has advanced hospitals and public transport compared to rural Kenyan
towns.
4. Urban Informal Economy Absorbs Unskilled Labor: The vast informal sector in large cities absorbs low-skilled migrants who
may not find employment in structured environments. Eg- Migrants from Bihar and UP find work in Mumbai’s construction
and domestic work sectors.
5. Political and institutional support: large cities like Ho Chi Minh City in Vietnam, Shanghai in China or Chittagong in
Bangladesh are the focus of government policies, investments and FDI, making them hub of economic activities attracting
migrants.
6. Social Reasons:
a. Presence of Social Networks: established migrant communities in large cities provide support and resources for
newcomers, facilitating their integration and job searches.
b. Cultural and Social Mobility – Cities offer a modern lifestyle. In São Paulo, Brazil, migrants are attracted to the
cosmopolitan environment and entertainment options that smaller towns lack.
c. Perceptions about growth, prosperity and modernity attract more migrants to large cities rather than smaller
towns. Eg. Mumbai’s image as the city of dreams.

However, smaller cities are also attracting migrants in re-

cent years
1. Lower Cost of Living: For example, in India, living in a smaller town like Coimbatore is far cheaper than in Mumbai.
2. Less Congestion and Pollution: Smaller towns offer a cleaner environment with less traffic congestion and pollution com-
pared to big cities.
3. Closer Community and Social Ties: Smaller towns often have stronger community bonds, where individuals feel more
connected and supported by local networks, unlike the anonymity of big cities. This appeals to migrants looking for a close-
knit society.
4. Decreasing Urban Job Opportunities: As big cities face saturation of jobs, smaller towns have become attractive due to the
rise of industries and remote working opportunities. For example, the growth of IT hubs in smaller cities like Kochi in India.

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Demographic Winter:
The term “demographic winter” refers to a situation where birth rates fall significantly
below the replacement level, leading to an aging population, a shrinking workforce, and
economic challenges. By 2022, there were 771 million people aged 65 and older, making
up about 10% of the global population. This figure is expected to rise to 16% by 2050, with
further increases projected as life expectancy grows and fertility rates decline.​

Reasons behind demographic winter:

1. Changing Family Dynamics: Delayed marriages, fewer children, and the rise of sin-
gle-person households are leading to lower birth rates.
2. Low Religious Observance: as per World Population Prospects 2024, Countries
with low religious observance like Sweden, Denmark, Russia see lower birth rates and
higher abortion rates.
3. Modernization Effects: Urbanization and economic changes often shift societal
values away from family-oriented lifestyles, discouraging childbirth.
4. Economic Factors: High living costs and economic instability make raising children less feasible for many families, resulting
in delayed or reduced family planning. Eg. the cost of living index in Mumbai is approximately 30% higher than the nation-
al average.
5. Changing socio-cultural norms like prioritizing individualism, education and career over family. Eg. In USA, TFR declined to
1.8 as compared to 4.5 in 1950 because more women are pursuing education and career over marriage.
6. Advancements in Health: While modern medicine has extended life expectancy, contributing to aging populations, fertility
treatments and contraception allow for better control of reproductive choices, often leading to fewer children.

Countries showing signs of Demographic Winter

While not every region is experiencing demographic winter, many parts of the world—especially in developed countries—are showing
signs of this phenomenon.
1. Europe: fertility rates in Spain, Germany, Italy, Russia, and Japan are all around 1.4, and Latvia’s and Poland’s are near
1.3 – well below 2.1.
2. East Asia: Japan’s population is already shrinking, with fertility rates around 1.3, and South Korea has one of the lowest
fertility rates in the world at just 0.8.
3. North America: The U.S. birth rate is below replacement level, though it is partly offset by immigration. Without suffi-
cient immigration, the U.S. would also face a demographic winter.
4. China: After decades of the one-child policy, China is now facing a declining birth rate and a rapidly aging population.
5. India – As per the fifth NFHS 2019-21, the TFR in India has declined to 2.0 children per woman
6. However in many developing countries in Africa like Nigeria, Ethiopia,etc. And in Bangladesh, Pakistan TFR is still
above 4.0

Changing Trends of migration:

Report titled ‘400 Million Dreams’ highlights the changing patterns of migra-
tion in India since the 2011 Census.
Key Findings:
• Reduction in Domestic Migrant Numbers: By about 12% from 45.57 crore to 40.20 crore in 2023 with migration
rate dropping from ~38% to an estimated ~29% in 2023.
• Migration Dynamics:
• Short-distance migration is predominant, with distance negatively affecting labour mobility.
• Migration originates primarily from areas around major urban centers like Delhi, Mumbai, Chennai, Bangalore, and
Kolkata
• Major Migration Routes: UP-Delhi, Gujarat-Maharashtra, Telangana-AP, Bihar-Delhi (state level).
• Increase in Migrant Share: West Bengal, Rajasthan, and Karnataka have seen an increase in percentage of arriv-
ing migrants.
• Decrease in Migrant Share: Maharashtra and Andhra Pradesh experienced reduction in their share of total mi-
grants.

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Government Initiatives for Migrants

1. e-Shram Portal (2021): National database for unorganized workers, providing access to welfare schemes.
2. One Nation One Ration Card (ONORC): Enables food security across state borders.
3. Affordable Rental Housing Complexes (ARHC): For urban migrants and poor.
4. PM Garib Kalyan Yojana: Food and income support during COVID-19.
5. PM Jeevan Jyoti Bima Yojana: Rs. 2 lakh insurance cover for workers.
6. PM SVANidhi: Micro-credit scheme for street vendors including migrants.
7. PM Shram Yogi Maan Dhan: Pension for informal workers.
8. Skill India Mission: Vocational training and skilling programs.
9. Inter-State Migrant Workmen Act, 1979: Regulates employment conditions of inter-state migrants.
10. Ayushman Bharat PM-JAY: Health insurance for poor, including migrant workers.

Way Forward:
1. Policy Interventions: The government should focus on strengthening social security measures, providing affordable
housing, and creating employment opportunities to improve the living conditions of migrants.
2. Skill Development: Implementing training programs and vocational education initiatives can help migrants acquire
better skills, enabling them to secure stable and higher-paying jobs.
3. Better Urban Planning: Authorities must enhance urban infrastructure, including transportation, sanitation, and hous-
ing, to accommodate the growing migrant population and prevent the expansion of slums.
4. Legal Protection: Strengthening labor laws and ensuring strict enforcement can safeguard migrant workers from exploita-
tion, discrimination, and unfair working conditions.
5. Counter Magnet Cities: By investing in infrastructure, amenities, and economic opportunities in regional cities, governments
should aim to promote balanced regional development and reduce pressure on major urban hubs.

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CHAPTER 5

Settlements and
Urbanization

Previous year Questions

[2013] Bring out the causes for the formation of heat islands in the urban habitat of the World.
[2013] Discuss on the various social problems which originated out of the speedy process of urbanization in India.
[2015] Smart cities in India cannot sustain without smart villages. Discuss this statement in the backdrop of rural urban integration.
[2016] Major cities of India are becoming more vulnerable to flood conditions. Discuss.
[2016] With a brief background of quality of urban life in India, introduce the objectives and strategy of the ‘Smart City Programme’.
[2017] The growth of cities as I.T. hubs has opened up new avenues employment but has also created new problems. Substantiate this
statement with examples.
[2020] Account for the huge flooding of million cities in India including the smart ones like Hyderabad and Pune. Suggest lasting reme-
dial measures.
[2021] What are the environmental implications of the reclamation of water bodies into urban land use? Explain with examples.
[2021] What are the main socio-economic implications arising out of the development of IT industries in major cities of India?
[2022] How is the growth of Tier 2 cities related to the rise of a new middle class with an emphasis on the culture of consumption?
[2023] Does urbanization lead to more segregation and/or marginalization of the poor in Indian metropolises?
[2024] Why do large cities tend to attract more migrants than smaller towns? Discuss in the light of conditions in developing countries.

Migration
“The movement of persons away from their place of usual res-
idence, either across an international border or within a State.”
- International Organization for Migration (IOM).

Key Facts on Regional and

International Migration
• Regional Migration in India
− High Internal Migration Rate: As of 2020–
21, India’s migration rate was 28.9%, with

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26.5% in rural areas and 34.9% in urban areas. The majority of migration occurs within states, with 85.5% of rural and
77.5% of urban migrant households moving within the same state.
• Dominance of Rural-to-Rural Migration: According to Census 2011, rural-to-rural migration accounted for about 53.8% of
all internal migrants. Marriage is the main reason for total migration, while employment is the leading reason for male migra-
tion.
• International Migration
− India as a Top Remittance Recipient: India received the highest amount of international remittances globally, with
USD 129 billion in 2024. This underscores the scale of Indian migration abroad and its economic significance for
the country.
− Volume of International Migrants: The World Migration Report 2024 estimates there were 281 million interna-
tional migrants worldwide in 2020, representing 3.6% of the global population. India is one of the leading countries
of origin for international migrants

Evolution of Migration Patterns

1. Pre-Independence and Early Post-Independence:
a. Large-scale forced migration occurred during
the Partition in 1947, with over 14 million people
moving between India and Pakistan.
b. Early voluntary migration was driven by industrial
growth in port cities like Kolkata and Mumbai,
attracting unskilled labor from surrounding rural
areas.
2. Patterns from 1970s to 1990s
a. Economic Shifts:
i. The 1970s and 1980s saw migration
influenced by economic crises, limited
manufacturing growth, and rising pe-
troleum prices, affecting all migration
streams.
b. Rural-to-Urban Migration:
i. Migration to cities for employment,
education, and better living standards
became prominent, especially among
young men.
3. Liberalization and Post-1991 Trends
a. Impact of Economic Reforms:
i. The 1991 liberalization increased in-
ternal migration due to both push (rural
distress) and pull (urban job opportunities) factors.
ii. There was a notable shift from agricultural to industrial and service sector employment, increasing work-
force mobility.
b. Rural-to-Rural Migration: Remains the largest stream, accounting for over half of all internal migration, largely due
to marriage and family reasons, especially among women.
c. Rural-to-Urban Migration: Declined in recent years, partly due to high urban living costs and improved rural con-
nectivity. Still significant for the employment-related movement, especially among men.
d. Urban-to-Urban Migration: Increased sharply in the 2000s and 2010s, reflecting “step migration” as people move
between urban centers for better opportunities.
e. Urban-to-Rural Migration: Remains minor but has grown slightly, often due to retirement or high urban costs.
4. Recent Developments (2000s–2020s)
a. Marriage vs. Employment: Marriage is the leading cause of migration (especially for women), while employment
dominates for male migrants.
b. Intra-State vs. Inter-State Migration: Intra-state migration accounts for about 88% of all internal migration; in-
ter-state migration is about 12%, with Uttar Pradesh and Bihar as major source states and Maharashtra and Delhi as
major destinations.
c. Short-Distance Migration: Most migration is over short distances, with distance negatively affecting labor mobility.
d. Temporary and Seasonal Migration: Seasonal/circular migration for agriculture, construction, and industry remains
a key livelihood strategy for the rural poor.
5. Impact of Covid-19
a. Reverse Migration: The 2020 lockdown triggered unprecedented urban-to-rural reverse migration, with tens of
millions returning to rural areas due to job loss and urban hardships.
b. Rebound and New Trends: As rural economies struggled to absorb returnees, many migrants returned to cities, and
urban migration resumed, especially for work in construction and services.
c. Changing Destinations:
− Migrants now prefer cities closer to their home regions and show increased interest in short-distance migration.

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International Migration

Shift in Migration Policy Frameworks of the Global North

• United States
− The US has initiated mass deportation operations, tightened asylum and refugee admissions, and ended Temporary
Protected Status (TPS) for several countries.
− Birthright citizenship is being legally challenged, and a new “remigration” office is proposed to encourage voluntary
returns and streamline deportations.
• United Kingdom
− The UK now requires most migrants to wait ten years (up from five) for permanent settlement and has raised skill
and salary thresholds for work visas.
− Overseas recruitment for care workers has ended, English proficiency standards are stricter, and sectors must devel-
op domestic workforce plans to retain access to migration channels.
• Canada
− Canada is reducing both permanent and temporary migration targets, with significant cuts to the Provincial Nominee
Program (PNP) and stricter eligibility criteria.
− There is a new focus on transitioning existing residents (workers, students) to permanent status and prioritizing
critical sectors like healthcare and construction.
• Germany
− Germany has made citizenship and family reunification rules more stringent, including longer residency require-
ments and suspended reunification for some protection categories.
• France
− France’s reforms balance skilled migration needs with stricter controls, introducing new “Talent” residence permits
for qualified professionals and faster deportation procedures.
− Integration measures include mandatory language and civic education, while Schengen visa processes are being
overhauled for efficiency.

Impact on India
1. Restrictive Turn in Developed Nations
a. United States: While deportations of undocumented migrants, including Indians, have accelerated, legal pathways
like H-1B and student visas remain open—though with stricter scrutiny and longer wait times. This paradox creates
both opportunities and uncertainty.
b. UK & Canada: Rising thresholds for language proficiency, income, and skills have made it harder for Indian profes-
sionals to qualify. Sector-specific restrictions—e.g., UK’s ban on overseas care workers—further narrow access.
c. European Nations: A growing securitization of migration (post-Brexit and post-COVID) has resulted in tighter visa
regimes and capped intakes, affecting both students and low-skilled migrants.
2. Ripple Effects on India
a. Remittances Under Pressure: India, the world’s top remittance recipient, could face a dip as stricter policies reduce
outbound migration, especially to Gulf and Western countries.

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b. Brain Circulation Interrupted: Reduced outbound movement limits India’s soft power, access to global skill ecosys-
tems, and return migration benefits like tech transfer and capital infusion.
c. Reverse Migration Risks: Deportations and stricter norms are triggering return migration, particularly in Punjab and
Haryana—risking socio-economic tensions in already job-scarce states.
d. Student Shift: Countries like Germany, Ireland, and Canada are emerging as fallback options due to more welcom-
ing education policies, though even these are tightening.
3. India’s Diplomatic and Policy Response
a. Negotiated Repatriation: India accepts its obligation to take back illegal migrants but stresses identity verification
and discrete processes to manage domestic backlash.
b. Push for Legal Routes: India continues to lobby for broader access to work and student visas and is focusing on
bilateral mobility partnerships to safeguard diaspora interests.
c. Immigration Reform at Home: The proposed Immigration and Foreigners Bill, 2025 aims to overhaul outdated
laws, introduce border technology, and streamline legal entry for professionals and investors.

Way forward
1. Strengthen Legal and Safe Migration Pathways
• Negotiate Bilateral Agreements: Proactively engage with major destination countries (US, UK, Canada, EU) to expand and
protect legal migration channels for skilled workers, students, and professionals.
• Modernize Emigration Systems: Streamline and digitize emigration processes, ensuring transparency and faster response
to global policy shifts. Implement real-time tracking and grievance redressal for migrants.
2. Enhance Support and Protection for Indian Migrants
• Legal Aid and Counseling: Establish dedicated support centers in key destination countries to provide legal assistance,
counseling, and emergency aid for migrants facing deportation or legal challenges.
• Skill Recognition and Upgradation: Facilitate international recognition of Indian qualifications and invest in upskilling pro-
grams aligned with global labor market demands, especially in emerging sectors.
3. Diversify Migration Destinations and Sectors
• Explore New Opportunities: Encourage migration to alternative destinations with favorable policies (e.g., Germany, Japan,
Australia) and promote sectors beyond traditional fields like IT and healthcare, such as green energy, construction, and hospi-
tality.
• Promote Regional Mobility: Leverage regional agreements (e.g., with Gulf countries, ASEAN) to create more balanced and
secure migration flows.
4. Safeguard Remittance Flows and Diaspora Engagement
• Protect Remittance Channels: Collaborate with financial institutions to ensure safe, affordable, and efficient remittance
systems, safeguarding the economic well-being of migrant families in India.
• Engage the Diaspora: Strengthen outreach and engagement with the Indian diaspora for knowledge transfer, investment,
and advocacy, turning migration challenges into opportunities for national development.
5. Policy and Institutional Reforms
• Data-Driven Policy: Establish a national migration data platform for evidence-based policy-making, monitoring trends, and
responding swiftly to global changes.

Urban Floods
In July 2025, Central Texas faced catastrophic floods as the Guadalupe River surged 26 feet within an hour, causing 82 deaths.
This tragedy exposed the vulnerability of advanced urban systems to sudden, extreme weather events despite early warning mecha-
nisms.

Data
1. Rising Frequency and Urban Exposure- Urban flooding is increasingly frequent in major Indian cities like Bengaluru (2025)
and Chennai (2015), driven by rapid urban expansion—urban area rose from 77,370 to 102,220 sq. km (2001–2011.
2. Economic Consequences- Historic events like the Mumbai (2005) and Chennai (2015) floods caused damages of $5.3
billion and $6.6 billion (2024 prices), crippling urban economies and infrastructure.
3. Human and Social Costs- Between 2012–2021, over 17,000 lives were lost to floods in India. Urban flooding also leads to
mass displacement, breakdown of transport, power, and water services, and worsening urban inequality as vulnerable popula-
tions bear the brunt of repeated crises.

Key Reasons Behind Urban Flooding

1. Climate Change & Extreme Rainfall: Global climate change has intensified short-duration, high-intensity rainfall events. Ur-
banized catchments now record flood peaks 1.8 to 8 times higher and flood volumes up to 6 times greater than rural areas.
2. Urban Heat Island Effect: As per NDMA, urban heat islands—dense areas that trap heat—cause localized temperature rise,
intensifying convection and rainfall. Rising heat lifts moisture-laden clouds, triggering intense rainfall episodes over cities.
3. Encroachment in Low-Lying and Wetland Areas: Due to high land prices and urban sprawl, cities are expanding into
flood-prone low-lying zones and natural drains. Encroachment of wetlands (e.g., Velachery Lake, TN) reduces natural water
retention capacity.

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4. Inadequate and Faulty Drainage Infrastructure: Cities lack robust drainage systems to handle intense rainfall. Paved surfaces
and concretized drains prevent groundwater recharge, while poor waste disposal and clogged drains worsen waterlogging.
5. Unplanned Urbanization and Grey Infrastructure: Haphazard development—like wide roads, flyovers, and construction
without environmental planning—has disrupted natural drainage. Recent floods in Gurugram and Bengaluru highlight these
structural failures.

Government Response to Urban Flooding in India

1. Policy and Institutional Framework
− The NDMA’s 2010 Urban Flood Guidelines laid the groundwork for integrated flood management.
− After the 2020 Hyderabad floods, the GHMC (Greater Hyderabad Municipal Corporation) formed a dedicated Flood
Management Cell for rapid urban response.
2. Urban Planning and Land Use Regulation
− The Chennai Master Plan now mandates No-Development Zones around water bodies after the 2015 floods.
3. Infrastructure Modernization and SUDS
− Indore has piloted permeable pavements and rain gardens in public parks under its Smart City Plan.
4. Technology and Early Warning Systems
− Delhi’s Irrigation and Flood Control Department uses automated rain gauges and real-time monitoring to manage
Yamuna overflow.
5. Community Engagement and Capacity Building
− In Guwahati, local residents were trained in flood drills and early warning responses under the Aapda Mitra pro-
gramme.
6. Finance, Climate Resilience, and Governance Reforms
− AMRUT 2.0 and Smart Cities Mission provide dedicated funding for urban resilience, including flood control infra-
structure.
− Mithi River Rejuvenation in Mumbai and wetland restoration in Kochi showcase nature-based solutions to miti-
gate urban floods.

Way Forward
1. Integrated Urban Planning with Flood Zonation
− Enforce floodplain zoning laws and integrate hydrological risk mapping into urban master plans.
− Example: Ahmedabad now incorporates flood vulnerability layers in its Development Plan 2041 using GIS tools.

2. Strengthen Natural Infrastructure and Blue-Green Networks

− Rejuvenate lakes, wetlands, and urban green spaces to act as sponges for excess rainwater.
− Example: Kolkata East Wetlands and Pune’s riverfront restoration projects showcase ecological buffers for
stormwater management.
3. Decentralized Stormwater Management
− Promote Sustainable Urban Drainage Systems (SUDS) such as bioswales, soak pits, and green roofs across new
and existing constructions.

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− Example: Indore Smart City mandates green roofs and rainwater harvesting in select zones under building by-laws.
4. Strengthen Forecasting and Early Warning Systems
− Expand real-time rainfall, waterlogging, and flood-level monitoring with public alert systems.
− Example: Mumbai’s Disaster Management Unit now integrates Digital Twin modelling to simulate flood scenarios
in advance.
5. Institutional Convergence and Accountability
− Establish dedicated Urban Flood Management Authorities in flood-prone cities for inter-agency coordination and
response.
− Example: Hyderabad’s multi-agency War Room post-2020 floods now serves as a model for integrated disaster
response.
6. Community-Centric Preparedness and Local Action
− Involve RWAs, youth volunteers, and local self-governments in localized flood response and awareness.
− Example: The “Namma Jalamarga” initiative in Bengaluru empowers citizen groups to report and manage drain
encroachments and blockages.

Urban Heat Island

The World Meteorological Organization (WMO) defines the urban heat island as a typical feature of the urban climate, characterized
by the difference in air temperature between a hotter city and its cooler surrounding countryside. This temperature difference is most
pronounced during very sunny, low-wind weather conditions and can reach up to 10 Kelvin (°C) in large cities.

Urban Heat Island (UHI) Effect: Key Insights from India and the World
1. Urban–Rural Temperature Gaps
− Indian cities show UHI intensity from 1°C to 9°C, with Delhi (8.3°C) and Chennai (2.5°C) among the highest.
− Globally, urban areas are 1–7°C hotter by day and up to 5°C at night, with extreme cases like 10–15°C gaps
during heatwaves.
2. Nighttime Amplification & City-Specific Variations
− UHI is more intense at night: Bengaluru and Hyderabad record 1.9–2.4°C higher nighttime temperatures.
− Pune saw land temperature rise by 1–6°C between 1999–2006; 42 Indian cities show consistent nocturnal UHI
intensity.
3. Drivers: Impervious Surfaces and Urban Design
− Indian cities experienced a 68% rise in impervious surfaces, blocking natural cooling and enhancing heat retention.
− Globally, despite covering just 0.5% of land, urban areas host over 50% of people, concentrating heat-producing
infrastructure.
4. Health and Economic Impacts
− In India, heatwave days increased by 2.5 between 1961–2021; vulnerable populations face higher heat stress and
illness.
− In Europe, UHI causes 6,700 premature deaths annually; every 1°C rise can increase energy demand by up to 5%.
5. Policy Relevance and Urban Planning Needs
− India’s cities contribute 44% of GHG emissions, making UHI a climate justice and urban resilience concern.
− Tackling UHI requires green infrastructure, building codes, water body restoration, and city-level heat action
plans.

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WMO Recommendations to Mitigate Urban Heat Island (UHI) Effect

The World Meteorological Organization (WMO) calls for a systems-level response to Urban Heat Islands (UHI), integrating science,
planning, and citizen engagement to make cities climate-resilient.
1. Urban Greening as Climate Infrastructure
• Core Principle: Leverage evapotranspiration and shading to cool urban microclimates.
• Instruments:
− Green roofs (e.g., Seoul’s mandatory green roof law)
− Urban forests (e.g., Ahmedabad Heat Action Plan)
2. Climate-Smart Urban Materials and Layout
• WMO Emphasis: Shift from heat-retaining to reflective materials and ventilated designs.
• Recommendations:
− High-albedo surfaces: White/reflective roofing materials (e.g., Ahmedabad’s cool roof pilot)
− Permeable pavements: Used in Indore Smart City to manage heat and runoff
3. Integrated Land–Water–Climate Planning
• Embed UHI mitigation into:
− Master Plans (e.g., Pune’s Development Plan links to heat resilience)
− Wetland restoration (e.g., revival of Ambazari Lake, Nagpur)
4. Monitoring & Forecasting: Digital Urban Services
• Tools:
− Remote sensing, IoT sensors, AI-powered climate models
− Digital twins for predictive heat mapping (e.g., used in Singapore & Vienna)
5. Sponge City and Nature-Based Cooling
• Concept: Convert hardscapes into absorbent, multifunctional zones
− Sponge city pilots: China (Wuhan), India (Kolkata and Bengaluru)
− District cooling systems: Used in Dubai, Singapore, and GIFT City, India
6. Community-Led Cooling and Governance
• WMO stresses social inclusion in climate design:
− Cooling shelters in slums during heat waves (e.g., Ahmedabad’s Heat Action Plan)
− Awareness campaigns (e.g., HeatWatch in Hyderabad)

Urban Infrastructure
“Urban development is not merely a policy agenda; it is an instrument for achieving faster growth and poverty alleviation.” — Narendra
Modi, Prime Minister of India

Status of Urbanisation in India – Key Insights

1. Rising Urban Share and Growth Trajectory- Urbanisation in India has steadily accelerated, growing from 31.2% in 2011 to
an estimated 37.1% in 2025 (~543 million people). Projections suggest the urban population will cross 600 million (40%) by
2030 and reach 50% by 2050.
2. Annual Growth and Urban Spread- India’s urban population is growing at ~2.25% annually (2023). Alongside megacities
like Mumbai, Delhi, and Bengaluru, Tier-2 and Tier-3 cities are emerging as major urban hubs.
3. Regional Disparities in Urbanisation- Urbanisation is uneven across states—Tamil Nadu (48.4%), Kerala (47.7%), and
Maharashtra (45.2%) lead, while Bihar (11.3%), Assam (14.1%), and Odisha (16.7%) lag.
4. Economic Centrality of Urban India - Just 15 urban centres account for ~30% of India’s GDP, underlining their role as
engines of economic growth, innovation, and service delivery.

Funding Urban Infrastructure

The World Bank’s 2022 report, “Financing India’s Urban Infrastructure Needs,” provides a comprehensive analysis of the challenges
and opportunities in funding urban growth. It highlights India’s $840 billion investment gap through 2036, examining fiscal, insti-
tutional, and governance barriers, and recommends reforms to boost private and commercial financing for sustainable urban develop-
ment.

Challenges in Urban Infrastructure in India

1. Large Financing Gap: Urban infrastructure investment needs are estimated at $840 billion over 15 years (2020–2036), but
current spending is only about a quarter of this requirement, leaving a significant shortfall.

2. Over-Reliance on Public Funds: Most infrastructure is financed by central and state government grants; private/commer-
cial financing (municipal bonds, PPPs) accounts for less than 5% of total capital investment.

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3. Weak Revenue Base: Urban Local Bodies (ULBs) have low own-source revenues (OSR), with property tax collections at just
0.15% of GDP—much lower than international benchmarks. Service charges often do not cover even operating costs.

4. Limited Absorptive and Implementation Capacity: Many ULBs are unable to fully utilize their capital budgets due to weak
project planning, technical capacity, and slow execution, resulting in unspent funds and delayed infrastructure delivery.
5. Centralized Control and Regulatory Constraints: State governments retain strong control over ULB borrowing and invest-
ment decisions, limiting local autonomy and responsiveness. Approval processes for private financing are cumbersome and
case-by-case.
6. Fragmented Governance and Accountability: Overlapping mandates and weak functional devolution to ULBs result in
fragmented service delivery and diluted accountability, especially outside major metropolitan areas.

Way Forward
1. Boost Urban Revenues and Cost Recovery:
Double ULB own-source revenue every 5 years by rationalizing property tax assessments (using GIS mapping like in Pune),
expanding user charges (e.g., water metering in Nagpur), and improving billing/collection efficiency to enhance financial
sustainability.
2. Empower ULBs with Capacity and Autonomy: Enhance technical and financial capacity through AMRUT 2.0–Capacity
Building Component, decentralize capital investment decisions (as recommended by the 15th Finance Commission), and
build professional municipal cadres for planning and implementation.
3. Reform Intergovernmental Transfers: Shift from ad-hoc grants to stable, formula-based fiscal transfers, linked to out-
comes (e.g., performance grants for sanitation under SBM).
4. Mobilize Private Capital and PPPs: Strengthen creditworthiness of cities via credit ratings e.g., Ahmedabad’s AAA rating.
5. Plan Smart, Climate-Resilient Infrastructure: Embed climate risk assessments, flood zoning, and green infrastructure
in urban master plans as seen in Kochi.
6. Foster Democratic and Transparent Urban Governance: Institutionalize Ward Committees and Area Sabhas for grass-
roots oversight, mandate real-time disclosure e.g., Budget Tracking Portals in Delhi

Quality of Urban Life in India (2016)

India’s urban landscape is marked by rapid population growth, expanding cities, and rising aspirations for better living standards. While
urban centers drive economic growth and innovation, they also face significant challenges:
1. Urban Poverty and Inequality: Over 25% of urban Indians still live below the poverty line, concentrated in informal set-
tlements with limited services. The Urban Multidimensional Poverty Index (NITI Aayog) highlights deep spatial inequality
between gated colonies and slums in cities like Delhi and Mumbai.
2. Infrastructure Deficit Beyond Metros: Tier-2 and Tier-3 cities face critical gaps in piped water, sanitation, housing, and
public transport. For example, only 50% of Class I towns have sewerage networks, despite rising urbanization.
3. Climate Vulnerability and Poor Resilience: Indian cities are increasingly exposed to heatwaves, flash floods, and air
pollution. Chennai floods (2015, 2023) and Delhi’s heat dome (2024) exposed weak stormwater infrastructure and vanishing
wetlands
4. Lagging Quality of Life Indicators: Access to 24x7 clean water, scientific waste disposal, and open spaces remains limited.
India ranks low on the EIU Global Liveability Index, with most cities scoring poorly on health infrastructure and environmen-
tal sustainability.
5. Policy Focus on ‘Viksit Bharat’: Recent budgets emphasize urban rejuvenation as a growth engine, with expanded invest-
ment in metro rail, affordable housing (PMAY-U), urban employment (NULM), and circular economy initiatives. AMRUT
2.0, SVANidhi, and Digital India stack are tools driving this vision.

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AMRUT
“For the first time in India, people and urban leadership will play a pivotal role in deciding the future course of their cities… urbanisation
should be viewed as an opportunity, and urban centres should be viewed as growth engines”. PM Narendra Modi

The Atal Mission for Rejuvenation and Urban Transformation (AMRUT), launched in 2015, is a flagship centrally sponsored scheme
aimed at transforming urban infrastructure and improving the quality of life for all, especially the poor and disadvantaged, across 500
selected cities and towns in India.

Objectives of AMRUT
AMRUT’s objectives, as outlined by the Ministry of Housing and Urban Affairs are to:
1. Ensure universal access to basic services: Provide every household with a tap connection for assured water supply and a
sewerage connection.
2. Enhance urban amenities: Develop well-maintained green spaces and parks to increase the amenity value of cities.
3. Reduce urban pollution: Promote public transport and non-motorized transport (walking, cycling) to cut air pollution and
congestion.
4. Build climate resilience: Construct and maintain stormwater drains to reduce flooding and make cities more resilient to
extreme weather.
5. Promote inclusive and sustainable urban growth: Focus on infrastructure creation that directly improves service delivery
and living standards, with special attention to the needs of the poor and marginalized.

Strategy and Key Features

AMRUT’s strategy is multi-pronged and rooted in cooperative federalism, with states and urban local bodies (ULBs) playing a central
role in planning and implementation:
1. City-Specific Action Plans: States and ULBs identify priority projects based on local needs, within the broad framework of
AMRUT’s thrust areas: water supply, sewerage and septage management, stormwater drainage, urban transport, and green
spaces.
2. Reform-Linked Incentives: The scheme incentivizes urban governance reforms, including e-governance, municipal cadre
professionalization, improved tax collection, and credit ratings for ULBs.
3. Capacity Building: AMRUT invests in training and empowering municipal staff to ensure timely and effective project execu-
tion6.
4. Performance Monitoring: Dedicated review committees, independent monitoring agencies, and a central AMRUT portal
track progress, ensure transparency, and resolve bottlenecks.
5. Incremental and Inclusive Approach: The mission follows a stepwise process (“incrementalism”)—first achieving universal
coverage of core services, then targeting higher benchmarks for service quality and sustainability.
6. Financial Structure: The total outlay for AMRUT (Phase 1) was ₹50,000 crore over five years, with further expansion under
AMRUT 2.0. Funds are allocated equitably among states/UTs based on urban population and number of statutory towns.

Recent Outcomes under AMRUT and AMRUT 2.0

1. Widespread Service Coverage Achieved: Under AMRUT, over 134 lakh households have received tap water connections
and 102 lakh households have sewerage access, improving urban service delivery across targeted cities.
2. Massive Infrastructure Push: A total of 5,873 projects worth ₹82,222 crore have been taken up. Of these, 4,676 projects
are completed and another 1,197 projects are under implementation, accelerating urban transformation.
3. Physical Progress and Spending: Projects worth over ₹66,313 crore have been physically completed, with ₹59,615 crore
expenditure incurred, indicating high fund utilization and ground-level activity.
4. Focus on Circular Economy in AMRUT 2.0: Cities are now preparing City Water Balance Plans (CWBP) to promote waste-
water reuse, rainwater harvesting, and water body rejuvenation, advancing long-term water sustainability.
5. New Tools for Better Urban Water Governance: AMRUT 2.0 has introduced Pey Jal Survekshan for service benchmarking,
Technology Sub-Mission for innovation, and IEC campaigns to raise public awareness about water conservation.

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Recent Initiatives for Slum Area Development in India

In a landmark moment for urban housing reform, around 1,400 families from northwest Delhi’s Jailorwala Bagh slum clusters re-
ceived new flats under the Swabhiman Apartments in-situ rehabilitation project. This transition from decades of informal living to
formal housing marks a significant step toward inclusive urban development and dignified living conditions.

1. Pradhan Mantri Awas Yojana – Urban (PMAY-U) (2015–present)

• Objective: Achieve “Housing for All” in urban areas by providing affordable housing, especially to slum dwellers and the urban poor.
• Key Features:
− In-Situ Slum Redevelopment (ISSR): Utilizes land as a resource to redevelop slums on the same site, ensuring mini-
mal disruption to residents’ livelihoods. Eligible slum households receive new, permanent houses.
− Beneficiary-Led Construction (BLC): Provides financial assistance to individuals for new house construction or
enhancement.
− Affordable Housing in Partnership (AHP): Encourages private sector and public agencies to build affordable housing
projects.
− Credit Linked Subsidy Scheme (CLSS): Offers interest subsidies on home loans for EWS/LIG/MIG groups.
• Progress: Over 1.2 crore houses sanctioned; real-time monitoring via a central dashboard; significant focus on in-situ rede-
velopment and integrated infrastructure.
2. Odisha’s Jaga Mission (2018–present)
• Objective: Empower slum dwellers by granting land rights and improving living conditions.
• Key Features:
− World’s largest slum land titling initiative: Provides legal land rights to over 200,000 urban slum households.
− Integrated Infrastructure Upgradation: Upgrades water supply, sanitation, roads, and lighting in recognized slums.
− Community Participation: Involves slum dwellers in planning and implementation, ensuring needs-based solutions.
• Recognition: Awarded by the World Habitat Awards and recognized as a national best practice by NITI Aayog.
3. Smart Cities Mission – Slum Integration Components (2015–present)
• Objective: Integrate slum development with broader urban transformation in selected cities.
• Key Features:
− Inclusion in Area-Based Development: Many Smart Cities projects include slum redevelopment, infrastructure
upgradation, and provision of digital amenities.
− Focus on Livability: Upgrades not just housing but also public spaces, green areas, and access to services within
slum clusters.
• Progress: Over 8,000 projects completed or underway, with a significant share targeting slum and informal settlements.
5. In-Situ Slum Redevelopment (ISSR) Models in Maharashtra and Gujarat
• Maharashtra (Mumbai):
− Slum Rehabilitation Authority (SRA) continues to implement PPP-based in-situ redevelopment, providing free
housing to eligible slum dwellers and leveraging land value for cross-subsidization.
− Recent Focus: Faster clearances, digital tracking of projects, and stricter eligibility norms to curb misuse.
• Gujarat (Ahmedabad, Surat):
− Slum Networking Projects: Upgrade infrastructure (water, roads, sanitation) in partnership with communities and
NGOs, emphasizing participatory planning and sustainability.

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CHAPTER 6

Regional Planning and

Human development

Previous Year Questions

[2016] What is the basis of regionalism? Is it that unequal distribution of benefits of development on a regional basis eventually pro-
motes regionalism? Substantiate your answer.
[2019] Define the concept of carrying capacity of an ecosystem as relevant to an environment. Explain how understanding this con-
cept is vital while planning for sustainable development of a region.
[2024] What is regional disparity? How does it differ from diversity? How serious is the issue of regional disparity in India?

Relative Economic Performance of Indian States: 1960-61 to 2023-24

“Balanced regional development is not a matter of charity — it is a matter of justice and national interest.”
— Jawaharlal Nehru, Former Prime Minister of India

India’s post-Independence economic journey has witnessed striking regional disparities. While some states have surged ahead
on the back of industrialization, IT-led services, and fiscal reforms, others have lagged due to structural rigidities, agrarian overdepen-
dence, or missed opportunities. The economic liberalization of 1991 became a pivotal inflection point, reshaping growth trajecto-
ries across the Indian federal landscape.

According to paper published by EAC-PM

1. Southern States: Post-1991 Growth Leaders
• Pre-1991: Southern states lagged behind national growth trends.
• Post-Liberalization Boom: After 1991, Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, and Telangana emerged as high
performers.
• GDP Contribution: These five states together accounted for ~30% of India’s GDP in 2023–24.
• Per Capita Income (2023–24):
− Telangana: 193.6% of national average
− Karnataka: 181%
− Tamil Nadu: 171%
− Kerala: 152.5%
• Key Insight: Liberalization catalyzed services, IT, and manufacturing growth in South India.

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2. Western States: Consistent Top Performers

• Maharashtra: Maintained the highest GDP share since
1960.
• Gujarat: Surpassed Maharashtra in per capita income by
2011; now at 160.7% vs Maharashtra’s 150%.
• Growth Driver: Industrialization, infrastructure, export
orientation.
• Goa:
− Per capita income ~3x national average in 2023
− Second only to Sikkim nationally
3. Northern States: Mixed Performance
• Delhi & Haryana: Strong GDP and income growth
− Haryana’s per capita income (2023–24): 176.8%
of national average
− Delhi’s GDP share rose from 1.4% to 3.6%
• Punjab: Once a leader during the Green Revolution
− Now declining: Per capita income dropped to 106.7% (from 169% in 1970–71)
− Dutch Disease? Focus on agriculture may have delayed industrial transition
4. Eastern States: Long-Term Decline, Some Recovery
• West Bengal:
− GDP share fell from 10.5% (1960–61) to 5.6% (2023–24)
− Per capita income down to 83.7% (below Rajasthan, Odisha)
• Bihar:
− Dropped to ~33% of national average post-bifurcation
− Remittances not fully captured in GDP stats
• Odisha:
− Turnaround after 1990s: Per capita income rose
from 54.3% to 88.5%
− Mineral, port-led growth and fiscal reforms con-
tributed
5. Central States: From Powerhouse to Mid-Tier
• Uttar Pradesh:
− GDP share declined from 14.4% (1960–61) to
8.4% (2023–24)
− Per capita income stagnated
• Madhya Pradesh:
− Recovered from a long decline post-2010
Per capita income rose from 60.1% (2010) to
77.4% (2023)
6. North-Eastern States: Diverging Paths
• Sikkim:
− Became top-ranked in per capita income: 320%
of national average in 2023–24
− Driven by hydropower, tourism, low population base
• Assam:
− Fell from 103% (1960) to 61.2% (2010), then modest recovery to 73.7% (2023)

Drivers of Regional Disparity in India

1. Economic Structure and Sectoral Composition- States with a diversified economic base—such as Karnataka and Tamil
Nadu—benefit from a robust mix of services, manufacturing, and trade. In contrast, states with an agrarian-dominated
economy like Bihar or UP are more vulnerable to monsoonal shocks and low productivity cycles.
2. Governance and Reform Orientation- States that adopted proactive reforms, improved ease of doing business attracted
greater private investment. Gujarat and Telangana, for instance, have leveraged digital governance and investor summit.
3. Geographic and Logistic Advantages - Coastal proximity, better connectivity infrastructure, and higher urbanization
rates have made maritime states like Maharashtra and Tamil Nadu more competitive in global trade.
4. Historical Legacies and Policy Drift- Once-prosperous states like Punjab and West Bengal have experienced stagnation
due to overreliance on legacy sectors (e.g., agriculture in Punjab, industrial unions in Bengal), inflexible policy responses, and
failure to adapt to the post-1991 market economy.

Policy Implications and Strategic Pathways

1. Targeted Fiscal and Infrastructure Push in Lagging Regions- Programs like Aspirational Districts, PM Gati Shakti, and
National Infrastructure Pipeline must focus on building connectivity, human capital, and skilling ecosystems in eastern,
central, and northeastern states.

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2. Promoting Equitable Federalism and Broad-Based Growth - Encourage cluster-based industrialization, rural entrepre-
neurship, and agro-logistics in lagging areas to diversify the economic base and reduce dependence on remittances and
subsidies.
3. Dynamic Monitoring and Feedback Mechanisms - Establish state-level competitiveness indices, link perfor-
mance-based fiscal transfers, and promote inter-state knowledge exchange to enable adaptive policy making and contin-
uous course correction.
4. Demographic Dividend with Regional Equity- States like UP and Bihar have young populations but low industrialization. A
focused strategy on labour-intensive sectors, education reform, and MSME integration can convert this potential into a
growth multiplier.

Regional Variation in Human Development Across Indian

States
“India’s human development journey has been one of expansion — from survival to well-being, from well-being to empowerment.” UN
Human Development Report

India’s human development landscape is marked by significant disparities across states and regions. While the country’s overall Human
Development Index (HDI) has steadily improved—reaching 0.685 in 2023 and ranking 130 out of 193 countries—there are pro-
nounced differences in health, education, and income outcomes between leading and lagging states.

Key Patterns of Regional Variation

1. High-HDI States and Union Territories
• Top Performers: Goa, Kerala, Chandigarh, Delhi, and Himachal Pradesh consistently register the highest HDI scores, with
values above 0.73.
− Goa leads with an HDI of 0.760, followed by Kerala (0.758), Chandigarh (0.751), and Delhi (0.7340.
− These states excel in life expectancy, literacy, and per capita income, often matching or exceeding global averages.
• Contributing Factors: High investment in health and education, robust social indicators, and diversified economies drive
their performance.
2. Medium-HDI States
• States in Transition: Maharashtra, Haryana, Tamil Nadu, Karnataka, and Gujarat fall in the medium-high HDI bracket
(0.65–0.70).
− These states have made significant progress in education and healthcare but face intra-state disparities, especially
between urban and rural areas4.
• Urban-Rural Divide: Urban centers in these states often mirror high-HDI regions, while rural and tribal districts lag behind.
3. Low-HDI States
• Persistently Low Performers: Bihar, Uttar Pradesh, Jharkhand, Chhattisgarh, and Madhya Pradesh remain at the bottom,
with HDI values below 0.62.
− Bihar has the lowest HDI among major states (0.577), with low life expectancy, literacy, and income indices.
• Challenges: Chronic poverty, low female literacy, poor health infrastructure, and high fertility rates impede progress.

Trends and Insights

1. Mismatch with Economic Growth: States like Gujarat and Haryana, despite high per capita GDP, have relatively lower HDI
rankings due to gaps in health and education outcomes.
2. North-South Divide: Southern states (Kerala, Tamil Nadu, Karnataka) generally outperform northern and eastern states
(Bihar, UP, Jharkhand) in human development metrics.
3. Urban vs. Rural: Even within high-HDI states, rural and tribal districts often lag behind urban centers, highlighting intra-state
disparities.
4. Gender and Social Inequality: Lower female literacy and workforce participation, especially in northern and central states,
contribute to lower HDI scores.

Recent Developments
1. Steady National Progress: India’s HDI has improved from 0.676 in 2022 to 0.685 in 2023, with life expectancy reaching its
highest level since the index’s inception.
2. Policy Focus: Government initiatives like the Aspirational Districts Programme and SDG India Index target lagging regions,
aiming to bridge gaps in health, education, and income.
3. Global Context: India remains in the medium human development category, but regional disparities slow its progress
toward high human development status.

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Growth Centres and Growth Poles: Concepts and Strategic

Relevance
Growth Centre:
A growth centre is a spatially defined
area—urban, semi-urban, or rural—des-
ignated for targeted multi-sectoral
investment to stimulate economic activity
and regional upliftment. These centres
act as development magnets, enhancing
access to infrastructure, markets, and
employment, often selected for their stra-
tegic location, resource base, or logistic
advantage.

Growth Pole:
A growth pole is an economic node where
development is led by a dominant indus-
try or firm. Coined by François Perroux,
the theory posits that development is not uniform but emerges around a nucleus of high-productivity, innovation-driven economic
activity that induces growth in surrounding areas through backward-forward linkages and external economies.

Key Differences: Growth Centre vs. Growth Pole

Feature Growth Centre Growth Pole
Core Concept Spatial planning for multi-sectoral growth Sector-led growth agglomeration
Scale District or sub-regional Regional to national
Driver Location, infrastructure, service provision Anchor industry or firm (e.g., steel, IT, finance)
Spillover Mechanism Investment attraction, service diffusion Industrial linkages, technological diffusion
Policy Use Balanced regional development, decentralization Rapid economic acceleration, innovation clusters
Examples (India) Kalinganagar, Kochi, Dholera Smart City Mumbai (Finance), Chota Nagpur (Steel), Banga-
lore (IT)
Theoretical Origin American spatial planning French economic geography (Perroux)

Theoretical Roots and Application

1. Growth Pole Theory – François Perroux
Growth occurs through dominant firms and industries that pull ancillary sectors via supply chains and market interactions. However,
if poorly planned, such poles can widen regional disparities.
2. Growth Centre Strategy
Rooted in American and Indian planning models (e.g. Town and Country Planning), this approach selects nodal towns to decentralize
development. Often linked to hierarchical urban systems, it supports planned migration, employment generation, and equitable infra-
structure access.

Application in India: Growth Planning in Action

Growth Centre Scheme (1988):
Launched by the GoI to develop 71 growth centres aimed at industrial dispersion in backward districts. Funding was shared be-
tween Centre and States; however, challenges in land acquisition, power supply, and private investment limited its impact.

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Sectoral Growth Poles:

• Chota Nagpur Plateau (Jharkhand): Steel, mining, and heavy industries form the industrial pole with linkages to power,
transport, and manufacturing.
• Mumbai (Maharashtra): Financial pole with deep linkages to insurance, media, and corporate services.
• Bangalore (Karnataka): Global tech pole, with spillovers to education, real estate, and R&D.

Emerging Growth Centres:

• Kalinganagar (Odisha): Industrial cluster with focus on steel and allied sectors.
Dholera (Gujarat): Greenfield smart city being developed as part of Delhi–Mumbai Industrial Corridor (DMIC).
• Kochi (Kerala): Port-led growth centre under Sagarmala, linked with logistics and IT services.

Benefits
• Reduces pressure on mega cities by distributing economic opportunities.
• Spurs employment generation, especially in peri-urban and rural areas.
Enhances regional infrastructure and service delivery access.
• Promotes economic corridors and smart specialization.

Challenges
• Uneven trickle-down: Benefits may remain concentrated if connectivity and governance are poor.
• Environmental stress: Rapid industrialization can deplete local ecology and water.
Planning gaps: Many growth centres lack integrated urban-rural linkages, leading to isolated development.

Contemporary Relevance for India

• Niti Aayog’s Aspirational Districts and Gati Shakti PM Master Plan emphasize node-based development with growth pole
logic.
• Economic corridors (e.g. East Coast Economic Corridor) are structured around growth centers–growth pole hybrid mod-
els.
• With rising urbanization, the balance between decongestion (growth centres) and economic clustering (growth poles) is
critical to inclusive and sustainable urbanization.

Regional Development Strategies: An Integrated Approach

India’s journey toward equitable regional development has been marked by wide disparities in income, infrastructure, and opportuni-
ties. Regional development strategies aim not only to bridge these gaps but also to convert lagging regions into engines of inclusive
growth. As noted by the UNDP (2023–27 Programme), “Development must reach the last mile through local empowerment and
context-sensitive planning.” These strategies combine spatial planning, fiscal incentives, infrastructure investment, and institutional
capacity-building to ensure that every region contributes to and benefits from India’s growth story .

Core Approaches to Regional Development

1. Growth Pole and Growth Centre Strategies
a. Growth Poles (Perroux Model): Anchor economic activi-
ty around advanced industrial clusters (e.g., Chhota Nag-
pur – steel, Pune – auto, Mumbai – finance) to generate
backward and forward linkages.
b. Growth Centres: Strategic development of urban-in-
dustrial nodes in backward regions to decentralize
investment and reduce urban-rural divides. Eg The
Delhi-Mumbai Industrial Corridor (DMIC) incorporates
growth pole thinking by establishing investment zones
and smart cities with high logistics connectivity.
2. Balanced Regional Development
a. Equitable Resource Allocation: Policies like the Fi-
nance Commission’s formula, and schemes like PM Gati
Shakti, aim to distribute development equitably.
b. Urban-Rural Synergy: Avoid rural neglect and urban
congestion by developing intermediate towns and
peri-urban zones. Eg: The Rurban Mission aims to bring
urban amenities to rural clusters, strengthening hinter-
land economies.

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3. Infrastructure-Led Development
a. Physical Infrastructure: Improved highways (Bharatmala), rural roads (PMGSY), ports (Sagarmala), and airports
(UDAN) connect lagging regions.
b. Social Infrastructure: Investment in health, education, and sanitation improves human capital and quality of life.
c. World Bank Insight: Targeted infrastructure not only raises regional productivity but enables private sector expan-
sion .
4. Innovation, Technology, and Skill Development
a. Localized Skilling: Skill India and Jan Shikshan Sansthan tailor training to regional economic needs (e.g., leather in
Kanpur, handlooms in Assam).
b. Tech-Driven Leapfrogging: Digital India, BharatNet, and Startup India are enabling remote areas to integrate with
knowledge economies.
5. Institutional and Governance Reforms
a. Decentralized Planning:
States like Kerala (People’s Plan) and Maharashtra (District Planning Committees) have institutionalized local devel-
opment planning.
b. Performance-Based Transfers:
The 15th Finance Commission incentivizes governance and service delivery reforms through tied and untied grants

Government and Global Policy Frameworks

1. Government of India
a. Aspirational Districts Programme: Uses real-time data, rank-based competition, and handholding to transform
112 backward districts across India.
b. NITI Aayog’s Strategy for New India @75: Encourages region-specific development blueprints and inter-state
cooperation.
2. World Bank
a. Country Economic Memorandum (2025): Emphasizes a “laddered approach” — foundational public services in
lagging states; value-chain integration in advanced ones.
b. Project Support: Investments in energy, logistics, and urban resilience with strong emphasis on state-level capacity
building .
3. United Nations
a. UNDP Country Programme (2023–27): Prioritizes social protection, climate resilience, and digital platforms to
support inclusive regional growth.
b. India–UN Development Fund: Funds localized SDG-linked infrastructure, especially in vulnerable and disas-
ter-prone regions.

Recent Trends and Strategic Recommendations

1. Differentiated Development Paths: Advanced states (e.g., Tamil Nadu, Gujarat) need productivity reforms; lagging states
(e.g., Bihar, Odisha) need health, education, infrastructure focus.
2. Incentive-Driven Federalism: Performance-based grants, rankings (like SDG Index), and competitive schemes like PM MI-
TRA (for textiles) are reshaping cooperative federalism.
3. Integrated Resilience Planning: Regional development strategies increasingly account for climate shocks, disaster risks,
and gender vulnerability.
4. Global Partnerships: Projects funded through World Bank and UNDP offer access to expertise, monitoring frameworks, and
catalytic capital.

Environmental Issues in Regional Planning

“Sustainable regional planning is essential to ensure that economic growth, environmental protection, and social well-being advance
together. By integrating sustainability principles, regional planning safeguards natural resources, mitigates climate risks, and creates
resilient communities for present and future generations.” — United Nations Department of Economic and Social Affairs (UNDESA)

Key Environmental Challenges in Regional Planning

1. Land Use Change and Ecological Degradation
• Urban encroachment and deforestation for SEZs, industrial corridors, and highways has led to habitat loss and biodiversity
decline (e.g., NCR, Aarey Forest, Great Nicobar project).
• Soil degradation due to over-mining, shifting cultivation, and unregulated construction undermines agricultural productivity
and resilience.
2. Pollution Load in High-Growth Zones
• Air pollution in urban-industrial clusters (e.g., Delhi-NCR, Dhanbad, Ludhiana) leads to public health crises.
• Water pollution from untreated urban sewage and industrial effluents affects rivers (e.g., Ganga, Yamuna) and groundwater
recharge.
• Noise and solid waste pollution rise in peri-urban growth belts due to poor urban design and waste segregation gaps.

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3. Resource Stress and Ecological Limits

• Groundwater depletion in regions like Punjab, Rajasthan, and Karnataka due to urban and agricultural overdraw.
• Wetland and forest loss, weakening the ecological buffers needed for disaster resilience (e.g., Pallikaranai, East Kolkata
Wetlands).
4. Climate Risks and Disaster Exposure
• Increased urban flooding in cities like Bengaluru and Chennai due to loss of natural drainage and unchecked urban sprawl.
• Heat islands and prolonged droughts due to unplanned concretisation and green cover loss (e.g., Ahmedabad, Delhi).
5. Infrastructure Footprint
• Linear projects (highways, railways, canals) fragment ecologically sensitive regions (e.g., Western Ghats, Aravallis).
• Rapid metro and airport expansion often bypasses Environmental Impact Assessments (EIA), as seen in certain Tier-2 city
projects.

Challenges in Integration of Environmental Concerns

Challenge Implication
Growth vs Sustainability Trade-off Short-term GDP growth prioritized over long-term ecological costs
Regulatory Weakness Poor implementation of EIA norms, weak local capacity, and fragmented governance
Data and Monitoring Gaps Inadequate mapping of ecosystems and pollution for regional planning
Political Economy Factors Lobbying and vested interests in land conversion and infrastructure approvals

Strategic Interventions for Greener Regional Planning

1. Green Infrastructure and Nature-Based Solutions
a. Urban forests, wetland rejuvenation (e.g., Bashettihalli,
Bellandur Lake revival).
b. Green belts and rainwater harvesting in industrial town-
ships (e.g., Dahej, Sri City).
2. Sustainable Urban Design
a. Transit-oriented development (e.g., Kochi Metro), vertical
growth over horizontal sprawl.
b. Climate-resilient city plans with green roofs, shaded
streets, and walkability.
3. Renewable Energy and Decentralised Technologies
a. Solar parks in Rajasthan, off-grid solar microgrids in
Sundarbans.
b. Use of digital tools for environmental compliance and
urban monitoring (e.g., ENVIS, GIS zoning).
4. Policy and Institutional Reforms
a. EIA reform with region-specific thresholds and cumula-
tive impact assessments.
b. Integrated regional plans with environmental zoning and
carrying capacity frameworks.
c. Empower State Pollution Control Boards and Urban Local
Bodies with funding and expertise.
5. Community and Civil Society Participation
a. Stakeholder-driven planning through participatory GIS
(e.g., watershed projects in Maharashtra).
b. Citizen science for wetland mapping, pollution reporting,
and local monitoring.

Recent Government and

International Initiatives
Initiative Focus Area
Amrit Dharohar (2023) Wetland restoration, sustainable livelihoods
Forest Cover Expansion (2013–2023) Increased by ~16,000 km², aiding carbon sink goals
National Adaptation Fund for Climate Change Climate-proofing regional infrastructure
India–UNDP Programme (2023–27) Climate adaptation, resilient planning, social protection
Forest Cover Expansion (2013–2023) Increased by ~16,000 km², aiding carbon sink goals
World Bank CPF(2023–28) Promotes resource efficiency, urban resilience, and governance

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CHAPTER 7

Transport,
Communication and
Trade

PYQs
[2014] International civil aviation laws provide all countries complete and exclusive sovereignty over the airspace above the territory.
What do you understand by airspace? What are the implications of these laws on the space above this airspace? Discuss the challeng-
es which this poses and suggests ways to contain the threat.
[2014] National urban transport policy emphasizes on moving people instead of moving vehicles. Discuss critically the success of
various strategies of the government in this regard.
[2019] How is efficient and affordable urban mass transport key to the rapid economic development of India?
[2021] Investment in infrastructure is essential for a more rapid and inclusive economic growth. Discuss in the light of India’s experience.
[2022] The Gati-Shakti Yojana needs meticulous coordination between the government and the private sector to achieve the goal of
connectivity. Discuss
[2024] What is the need for expanding the regional air connectivity in India? In this context, discuss the government’s UDAN Scheme
and its achievements.

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Road Transport
“If you want to eradicate poverty, you need good roads. Roads are not just infrastructure; they are the path to progress.” Nitin Gadkari,
Minister of MoRTH

Recent Trends and Achievements

1. Network Expansion: India’s road network exceeds 63
lakh km, with National Highways at 1,46,204 km as
of March 2025.
2. Construction Pace: 12,349 km of highways built in
FY 2023-24; target for FY 2025-26 is 10,000 km,
with a focus on high-speed corridors.
3. Capital Outlay: Ministry of Road Transport & High-
ways and NHAI capital expenditure reached over ₹2.5
lakh crore in FY 2024-25; budget outlay for FY 2025-
26 remains substantial.
4. Monetization & Private Investment: NHAI monetized
33 assets across 12 states, raising over ₹6,600 crore
in September 2024; targets for FY 2025-26 are
₹30,000 crore (monetization) and ₹35,000 crore (private investment).
5. Road Safety: Expansion of cashless treatment for road crash victims, removal of 1,000 accident-prone black spots, and
safety audits on 40,000 km of highways.
6. Green Technologies: Adoption of waste plastic, cold mix, full-depth reclamation, and other sustainable methods in road
construction

Bharatmala Pariyojana:
Bharatmala Pariyojana is a flagship highway development program launched by the Government of India in 2017 to overhaul the
country’s road infrastructure. The project aims to develop a seamless network of highways and expressways, focusing on economic
corridors, border and coastal roads, and improving connectivity to remote and backward areas.

Key Objectives
1. Enhance National Connectivity: Bridge critical infrastructure gaps in the highway network for smoother movement of goods
and people.
2. Reduce Logistics Costs: Streamline freight movement and reduce travel time, supporting the government’s goal to lower
logistics costs as a percentage of GDP.
3. Promote Economic Growth: Spur regional development by connecting industrial clusters, ports, and agricultural markets.
4. Boost Border and International Trade: Improve border and coastal road infrastructure to enhance security and facilitate
cross-border trade.

Major Features
1. Scope:
− Construction and upgradation of approximately 34,800 km of highways in Phase I.
− Focus on economic corridors, feeder routes, inter-corridor and feeder roads, border and international connectivity
roads, coastal roads, and port connectivity.
2. Implementation:
− Led by the Ministry of Road Transport and Highways (MoRTH) and the National Highways Authority of India (NHAI).
− Utilizes a mix of engineering, procurement, and construction (EPC), hybrid annuity, and public-private partnership
(PPP) models.
3. Funding:
− Total estimated outlay for Phase I is about ₹5.35 lakh crore.
− Funding sources include central budgetary support, market borrowings, toll revenues, and asset monetization.

Progress and Achievements (as of 2025)

• Corridors Developed:
− Over 26,000 km of highway projects awarded; nearly 20,000 km constructed.
− Major completed corridors include the Delhi-Mumbai Expressway, Eastern and Western Peripheral Expressways,
and several high-speed corridors.
• Network Expansion:
− Enhanced connectivity between economic hubs, ports, and hinterlands.
− Focus on integrating remote and border regions with the national network.

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• Technological Innovation:
− Adoption of digital project management tools, use of green technologies (e.g., waste plastic in roads), and modern
construction practices.

Impact
• Reduced Travel Time: Major expressways have cut travel times between key cities by 30–50%.
• Economic Upliftment: Improved access to markets and resources for remote and rural areas.
• Job Creation: Significant employment generated during construction and operation.
• Enhanced Safety: Upgraded highways with better safety features and monitoring.

Challenges
• Land Acquisition: Delays due to issues in acquiring land and securing clearances.
• Environmental Concerns: Need for sustainable practices to minimize ecological impact.
• Project Delays: Some stretches have seen slower progress due to funding and administrative hurdles.

Future Directions
• Phase II Planning: Expansion to cover an additional 48,000 km, focusing on last-mile connectivity and integrating multimod-
al transport.
• Integration with Gati Shakti: Use of digital platforms for unified infrastructure planning and execution.
• Sustainability: Continued emphasis on green technologies and climate-resilient infrastructure.

PM Gati Shakti
PM Gati Shakti – National Master Plan for Multimodal Connectivity is a transformative infrastructure initiative launched by the
Government of India in October 2021. It aims to bring together 16 ministries for integrated planning and coordinated implementation
of infrastructure projects across the country. The mission is to break departmental silos, streamline approvals, and create a seamless
multimodal logistics network that reduces costs and enhances efficiency.

Key Objectives
1. Integrated Infrastructure Development: Foster holistic planning and synchronized execution of roads, railways, ports,
airports, inland waterways, and logistics parks.
2. Reduce Logistics Costs: Lower logistics costs as a share of GDP (currently 13–14%) to globally competitive levels by improv-
ing connectivity and reducing bottlenecks.
3. Accelerate Project Delivery: Use digital tools for real-time monitoring, faster clearances, and reduced project delays.
4. Support Economic Growth: Enable industry, trade, and agriculture to access markets efficiently, boosting exports and
regional development.

Major Features
1. Digital Platform: The Gati Shakti digital platform provides a Geographic Information System (GIS)-based dashboard, inte-
grating data from all infrastructure ministries for evidence-based decision-making and project tracking.
2. Multimodal Connectivity: Focuses on connecting economic zones, manufacturing clusters, and rural areas through a net-
work of roads, railways, ports, airports, and logistics hubs.
3. Institutional Mechanism: An empowered Group of Secretaries and a Network Planning Group coordinate and monitor proj-
ect implementation across ministries and states.
4. Data-Driven Planning: Uses over 1,200 data layers (land, utilities, forests, etc.) to optimize route selection and minimize envi-
ronmental and social impacts.

Progress and Achievements (as of 2025)

1. Projects Integrated:
− Over 1,900 infrastructure projects mapped and monitored on the Gati Shakti portal, including expressways, dedi-
cated freight corridors, and logistics parks.
2. Faster Clearances:
− Average project approval time reduced by 50%, with significant savings in cost and time overruns.
3. Enhanced Connectivity:
− Key corridors such as the Delhi-Mumbai Expressway, Dedicated Freight Corridors, and new multimodal logistics
parks have been fast-tracked.
4. State-Level Adoption:
− 36 states and UTs have set up Gati Shakti cells, integrating state projects with the national master plan.

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Impact
1. Reduced Logistics Time and Cost: Seamless movement of goods and people, with logistics costs expected to fall by 4–5%
of GDP in the medium term.
2. Boost to Manufacturing and Exports: Improved access to ports and industrial hubs supports the Make in India and ex-
port-led growth strategies.
3. Job Creation: Infrastructure development and logistics modernization generate substantial employment opportunities.
4. Environmental Benefits: Optimized routes and multimodal transport reduce fuel consumption and emissions.

Challenges
1. Inter-Ministerial Coordination: Sustaining collaboration across ministries and states remains complex.
2. Capacity Building: Upgrading skills and digital literacy at all levels is essential for effective implementation.
3. Land and Environmental Clearances: Despite digital tools, some projects still face delays due to regulatory hurdles.

Future Directions
1. Expansion of Digital Twin Models: Enhanced real-time monitoring and predictive analytics for infrastructure management.
2. Greater Private Sector Participation: Attracting investment in logistics parks, warehousing, and multimodal hubs.
3. Sustainability Focus: Integrating green infrastructure and climate resilience into all future projects.

Progress in the Road Sector in Northeast India (2025)

Major Achievements
1. Expansion of National Highways:
Nearly 10,000 km of National Highways have been constructed in the Northeast from 2014 to 2024, at a cost exceeding
₹1.07 lakh crore. Over 5,000 km of additional highway projects are currently under implementation, aiming to further en-
hance connectivity across the region.
2. Flagship Schemes and Programs:
− Special Accelerated Road Development Programme for North East (SARDP-NE): Targets all-weather connectivi-
ty to district headquarters and remote areas. As of 2025, 186 NH projects (3,582 km, ₹77,362 crore) are ongoing in
Assam, Arunachal Pradesh, Nagaland, Manipur, and Tripura.
− Bharatmala Pariyojana: Over 3,800 km of highways are being developed in the Northeast under this national
program, with a focus on economic corridors and border roads.
− NESIDS (Roads): The North East Special Infrastructure Development Scheme funds critical road projects, with
the scheme extended to 2026 and a significant portion allocated to road infrastructure.
3. Strategic and High-Speed Corridors:
− Shillong–Silchar High-Speed Corridor: A 166.8 km, four-lane highway (₹22,864 crore) is under construction, set
to reduce travel time from 8.5 to 5 hours and provide the first high-speed route through the region’s hilly terrain. This
project will boost regional mobility and strategic integration, linking Assam, Meghalaya, Mizoram, Tripura, Manipur,
and the Barak Valley.
− Trans-Arunachal Highway & East-West Corridor: Enhance connectivity across Arunachal Pradesh and between
Assam, Nagaland, and Manipur, supporting both economic and strategic objectives.

Policy and Institutional Support

1. Dedicated Funding: The Ministry of Road Transport and Highways allocates at least 10% of its annual budget to the North-
east, ensuring sustained investment in road infrastructure6.
2. Integrated Planning: Initiatives like PM Gati Shakti and PM-DevINE are driving coordinated, multi-modal infrastructure
development, integrating roads with rail, air, and waterways for comprehensive regional growth.
3. International Connectivity: Projects like the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multi-Modal
Transit Transport Project are enhancing cross-border trade and reducing dependence on traditional maritime routes.

Impact and Outlook

1. Economic Growth: Improved road connectivity is catalyzing investment, trade, and tourism, positioning the Northeast as a
gateway to Southeast Asia.
2. Social Integration: Enhanced access to remote and border areas is improving service delivery, disaster management, and
security.
3. Future Prospects: All under-construction NH projects are targeted for completion by 2028, with ongoing efforts to address
remaining gaps in connectivity and ensure last-mile access.

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Road Safety in India

Road safety remains a critical public health and infrastructure challenge in India. Despite progress in policy and enforcement, the coun-
try continues to record some of the highest rates of road accidents and fatalities globally, impacting lives and the economy.

Key Statistics
1. India accounts for about 11% of global road accident deaths, with over 150,000 fatalities annually.
2. The majority of road accidents involve two-wheelers, pedestrians, and cyclists.
3. High-risk factors include speeding, drunk driving, poor road infrastructure, and low use of helmets and seatbelts.
4. Economic losses due to road accidents are estimated at over 3% of India’s GDP each year.

Government Initiatives
1. Motor Vehicles (Amendment) Act, 2019: Introduced stricter penalties for traffic violations, enhanced enforcement powers,
and provisions for electronic monitoring and road safety audits.
2. National Road Safety Policy (2010) and National Road Safety Board: Provide a framework for coordinated, multi-sectoral
road safety efforts.
3. Road Safety Audits and Black Spot Identification: Systematic audits and corrective measures on highways to address
accident-prone locations.
4. Awareness and Capacity Building: Promotion of awareness campaigns, driver training programs, and emergency response
systems.

Major Schemes and Projects

1. Road Safety Week & ‘Sadak Suraksha’ Campaign: Annual and ongoing campaigns to promote safe driving behavior and
public awareness.
2. CCTV and Speed Monitoring: Installation of surveillance and speed detection devices on national highways to deter viola-
tions.

3. Trauma Care and Emergency Services: Establishment of trauma care centers and improved emergency medical services
along highways.
4. Black Spot Removal Program: Targeted interventions to redesign and improve accident-prone locations.

Challenges
1. Inadequate Enforcement: Gaps in traffic policing and corruption hinder effective implementation of safety norms.
2. Poor Road Design and Maintenance: Many roads lack proper signage, lighting, and pedestrian/cyclist infrastructure.
3. Low Public Awareness: Limited compliance with safety measures such as helmet and seatbelt use.
Data and Coordination Gaps: Inconsistent data quality and limited inter-agency coordination impede evidence-based policy.

Way Forward
1. Strengthen Enforcement: Leverage technology (e.g., automated surveillance) and impose stricter penalties for violations.
2. Safer Infrastructure: Invest in intelligent transport systems, better road design, and maintenance.
3. Public Education: Expand education campaigns and community engagement to foster a culture of safety.
4. Data and Policy Integration:Improve data collection, analysis, and coordination among agencies for targeted interventions.

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Civil Aviation
“A common man who travels in slippers should also be seen in aircraft. This is my dream.”
— PM Narendra Modi

Civil aviation is one of the fastest-growing sectors in India, serving as a catalyst for mobility, economic growth, tourism, and em-
ployment. As the sector transitions from an elite mode of travel to mass connectivity, it plays a pivotal role in realizing the goal of “Ease
of Living and Ease of Doing Business.”

India’s Aviation at a Glance

1. Passenger Traffic Surge
a. Domestic passengers (FY 2024–25): 165.4 million
i. 7.6% growth YoY and 16.8% above pre-COVID levels
b. International passengers: 33.8 million
i. 14.1% growth YoY and 49% higher than pre-pandemic levels
2. Infrastructure and Connectivity
a. Operational airports under UDAN: 92 (includes 15 heliports and 2 water aerodromes)
b. Aircraft fleet: ~800 in service; over 1,000 aircraft on order for the next 10–15 years
c. UDAN achievements:
i. 635 routes operationalized
ii. 310,000 flights conducted
15.24 million passengers served (till May 2025)
3. Strategic Growth and Vision
a. India’s global status: 3rd largest aviation market in the world
b. Vision 2040 targets:
i. 1.1 billion passengers annually
ii. 190–200 airports
4. Emerging Trends and Inclusion
a. Women in aviation: DGCA targets 25% female representation by 2025
b. Innovation push:
i. DigiYatra for seamless travel
ii. Aircraft leasing at GIFT City
iii. Sustainable Aviation Fuel (SAF) adoption
iv. Green airport infrastructure expansion

Key Challenges
Challenge Explanation Real-world Example
1. Infrastructure Metro airports nearing saturation Delhi & Mumbai face delays and limited runway capacity
Congestion
2. High Operation- Aviation Turbine Fuel (ATF) is taxed at 20–30%, Affects profitability of IndiGo, SpiceJet
al Costs ~40% costlier than global average
3. Regional Gaps Remote and Tier-II cities lack adequate service Jamshedpur-Kolkata UDAN route discontinued due to
low viability
4. Environmental Emissions, noise, and land-use impacts Mumbai airport expansion faced opposition over man-
Concerns grove destruction
5. Financial Sta- Airlines struggle with debt and thin margins GoAir’s operational instability
bility
6. Skill Deficit & Shortage of skilled workforce; congestion Need for pilot training, ATC upskilling
Safety increases risks

Government Reforms & Initiatives

1. Connectivity & Affordability
a. UDAN Scheme: Affordable air travel for Tier 2 & 3 cities; over 450 routes operationalized.
b. RCS (Regional Connectivity Scheme): Focus on reviving airstrips and developing no-frills airports.
c. Open Sky Agreements: With SAARC & distant nations (>5,000 km from Delhi) to promote global access.

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2. Infrastructure & Ecosystem

a. DigiYatra: Biometric boarding for seamless airport experience.
b. Krishi UDAN: Air cargo corridor for perishable agri-exports from rural zones.
c. Aircraft Leasing @ GIFT City: Reduced foreign dependence; boosting Indian leasing industry.
3. Skill, Safety & Modernization
a. GAGAN (GPS-Aided Navigation): Improves airspace navigation and safety.
b. MRO Push under Atma Nirbhar Bharat: Tax rationalization to boost India’s maintenance hub potential.
4. Sustainability Focus
a. Green Airports: Promote carbon-neutral terminals and solar-powered infrastructure
b. Sustainable Aviation Fuel (SAF): R&D and policy focus to reduce carbon intensity
c. Carbon Offset Schemes: To meet ICAO targets and reduce aviation footprint
5. Budget 2025–26 Highlights
a. ₹2,400 crore Allocation to Civil Aviation Ministry
b. 120 New UDAN Destinations planned; targets 4 crore additional passengers over 10 years
c. Greenfield Projects: Expansion of Patna airport; Bihta brownfield development
d. Hilly & Aspirational Areas: Helipads and smaller airstrips prioritized

Why Are Indian Airlines Ordering Over 1,000 Aircraft for the Next Decade?
India’s airlines are placing record aircraft orders—over 1,000 jets for the next decade—to meet surging passenger demand, mod-
ernize fleets, and support the country’s ambition to become a global aviation hub. This expansion is driven by economic growth, policy
reforms, airport upgrades, and a rapidly rising middle class.
1. Rising Demand for Air Travel
• Domestic growth: In FY 2024–25, India recorded approximately 165.4 million domestic passengers, marking a 7.6% year-
on-year increase and surpassing pre-COVID levels by 16.8%.
• International recovery: International passenger traffic reached 33.8 million, up 14.1% YoY and 49% higher than pre-pandemic
figures.
• Airport capacity: Major airports like Delhi, Bengaluru, and Mumbai are operating near full capacity, reflecting infrastructure
strain and demand for more flights5.
• Macro-economic linkage: India is projected to become the third-largest aviation market globally by 2024, underscoring
the sector’s rapid expansion.
2. Fleet Expansion and Modernization
• Fuel-efficient aircraft induction: Airlines are upgrading fleets to reduce aviation turbine fuel (ATF) costs, which constitute
about 40% of operational expenses in India5.
• Mega orders: Air India placed a record order for 470 aircraft with Boeing and Airbus; IndiGo has over 500 aircraft on order,
and Akasa Air has ordered 226 Boeing 737 MAXs.
• Wide-body expansion: Indian carriers are acquiring wide-body jets to shift towards a hub-and-spoke model, aiming to posi-
tion cities like Delhi and Hyderabad as global transit hubs.
• Institutional linkage: Modernization aligns with India’s ambition to become a global aviation hub and compete with estab-
lished international carriers.
3. Structural Undersupply and First-Mover Advantage
• Global aircraft backlog: Boeing and Airbus delivery slots are booked until 2030–2032, creating a structural undersupply of
new aircraft.
• Bulk orders as a hedge: Indian airlines’ large orders secure early delivery slots, ensuring capacity growth and resilience
against future supply chain disruptions.
• Example: Akasa Air’s rapid expansion with 226 Boeing 737 MAXs within three years of launch demonstrates aggressive
market positioning.
4. Supportive Infrastructure and Policy Ecosystem
• Airport expansion: India has more than doubled its operational airports from 74 in 2014 to 160 by March 2025; the govern-
ment targets 220+ airports by 2030 and 350+ by 2047.
• Aircraft leasing at GIFT City: Policy reforms promote domestic aircraft leasing, reducing dependence on foreign lessors and
strengthening aviation finance6.
• Digital and regulatory reforms:
− DigiYatra: Facilitates biometric, paperless boarding for seamless travel.
− GAGAN satellite system: Enhances navigation accuracy and safety6.
− MRO tax reforms: GST on Maintenance, Repair, and Overhaul (MRO) services reduced from 18% to 5%, boosting
domestic MRO capacity.
• Institutional linkage: These initiatives are part of the PM Gati Shakti and UDAN schemes, integrating aviation into broader
infrastructure and connectivity plans.
5. Economic, Strategic, and Demographic Drivers
• Job creation: The aviation sector supports over 4 million jobs directly and indirectly, with significant multiplier effects in
tourism, trade, and allied industries.
• Demographic dividend: A rapidly growing middle class, rising disposable incomes, and urbanization are fueling sustained
demand for air travel.
• Strategic ambition: India aims to become a global aviation hub—not just for passenger traffic, but also for aircraft mainte-
nance (MRO), cargo, and logistics.
• Example: The Krishi Udaan scheme integrates agricultural exports with air logistics, linking rural producers to global markets.

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Rail Transport
Railways is not just a mode of transport. It is the lifeline of the nation — connecting people, catalysing growth, and powering the econo-
my.”
— Narendra Modi, Prime Minister of India

Key Progress achieved in 2024

1. Modernization and Infrastructure: Indian Railways made significant progress in 2024, focusing on world-class travel, freight
efficiency, and advanced technology. 6,200 km of rails were renewed, 6,450 km of tracks fully renewed, and 8,550 turnouts
replaced. Sectional speeds were raised, and 3,433 km were commissioned (1,158 km new lines, 259 km gauge conversion,
2,016 km doubling).
2. Gati Shakti Projects: 434 projects planned across three key corridors (Energy/Mineral/Cement, High Traffic Density, Rail
Sagar), with 58 projects sanctioned in 2024 at a cost of ₹88,875 crore, covering 4,107 km.
3. Electrification & Sustainability: 3,210 route km electrified in 2024; 97% of the broad gauge network is now electrified.
4. Station Redevelopment & Digital Initiatives: Major upgrades to stations, deployment of Wi-Fi at 6,112 stations, CCTV at
1,051 stations, and advanced telecom systems. Digital VHF sets and tunnel communication projects were rolled out.
5. Freight Corridors: Dedicated Freight Corridors (EDFC & WDFC) saw high-speed, high-volume freight movement, boosting
efficiency.
6. Safety & Security: Implementation of ‘Kavach’ (indigenous Automatic Train Protection system), elephant intrusion detection,
and enhanced passenger safety measures.
7. Passenger Services: Introduction of Vande Bharat, Namo Bharat Rapid Rail, Amrit Bharat, and Bharat Gaurav Tourist Trains.
Special focus on modern LHB coaches and bullet train progress.
8. RPF Achievements: Rescue operations, anti-trafficking, crime prevention, and passenger assistance under various opera-
tions (e.g., Nanhe Faristey, Yatri Suraksha, Amanat, Jeevan Raksha).
9. Skill Development & HR: Over 11.9 lakh officials onboarded on HRMS, with extensive training and digital learning initiatives.
10. Heritage & Cleanliness: Preservation of historic assets, robust grievance redressal, and cleanliness campaigns.

Vande Bharat Train

Progress and Recent Data
1. Network Expansion: As of March 2025, 136 Vande Bharat trains
are operational across India, connecting major cities and regions and
offering world-class travel experiences.
2. Indigenous Manufacturing: The trains are fully designed and man-
ufactured in India under the Make in India initiative, with the Integral
Coach Factory (ICF), Chennai, leading the effort.
3. Speed and Technology: Vande Bharat Express trains can reach speeds
up to 160 kmph and are equipped with advanced safety, comfort, and
digital features. The latest sleeper versions have completed success-
ful trials at 180 kmph, and production of 24-car sleeper train sets will
commence full-scale in 2026–27.
4. Ridership and Utilization: The trains consistently report high occu-
pancy rates (over 96% in 2022–23), with millions of passengers booking
tickets annually.
5. Revenue and Investment: Passenger segment earnings have increased
by 6% in FY 2024–25, with overall railway capital expenditure rising to
₹1.92 lakh crore, reflecting commitment to modernization.

Impact
1. Enhanced Connectivity: Vande Bharat trains have significantly improved intercity and regional connectivity, especially on
high-demand corridors such as Delhi–Varanasi, Mumbai–Ahmedabad, and Chennai–Bengaluru.
2. Travel Experience: Passengers benefit from faster journeys, reclining seats, Wi-Fi, automatic doors, and aircraft-like interiors,
raising the standard of train travel in India.
3. Economic and Social Benefits: The network supports regional development, reduces travel time by 30–50% on key routes,
and stimulates tourism and business activity. The project has also generated jobs and fostered domestic manufacturing.
4. Symbol of Self-Reliance: The Vande Bharat Express is seen as a flagship of India’s technological and engineering capabili-
ties, with costs significantly lower than comparable global models.

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Challenges
1. Safety and Infrastructure
a. Cattle and Trespass Risks: The trains’ lighter, distributed-power design makes them more vulnerable to accidents,
especially from cattle run-overs and trespassing in rural stretches. Frequent nose damage and operational disrup-
tions have been reported.
b. Track and Corridor Readiness: High-speed operations require robust fencing, elimination of level crossings, and
dedicated corridors—areas where current infrastructure is still catching up.
c. Expert Recommendations: Safety reports urge urgent installation of sturdy fencing, grade separation, and ad-
vanced monitoring (thermal cameras, animal sensors) to match speed with safety.
2. Operational and Institutional
a. Rapid Rollout vs. Ecosystem Preparedness: The swift expansion of Vande Bharat services is not always matched
by supporting upgrades in tracks, crossings, and maintenance, raising concerns about long-term sustainability.
b. Maintenance and Cost: While the trains are cost-effective to build, maintenance costs and the need for specialized
repair facilities are rising with the network’s expansion.
3. Equity and Accessibility: Some critics point out that premium services like Vande Bharat should not divert resources from
the broader need for affordable, reliable connectivity in underserved regions.

Way Forward
1. Comprehensive Safety Upgrades: Prioritize fencing, elimination of crossings, and advanced surveillance on all Vande Bharat
routes.
2. Balanced Modernization: Integrate Vande Bharat expansion with broader railway reforms—station upgrades, digital ticket-
ing, and improved last-mile connectivity.
3. Inclusive Development: Ensure that investments in high-speed rail complement efforts to enhance basic rail services in
remote and rural areas.

Regional Rapid Transit System (RRTS)

Progress and Recent Data
• Network Development:
− The Delhi-Ghaziabad-Meerut RRTS is India’s first high-speed regional rail corridor, spanning 82 km and connecting
Delhi to Meerut via Ghaziabad, Muradnagar, and Modinagar.
- As of July 2025, over 55 km of the corridor are operational, with full commissioning targeted for June
2025.
− The project is being implemented by the National Capital Region Transport Corporation (NCRTC), a joint venture
between the Government of India and states of Delhi, Haryana, Rajasthan, and Uttar Pradesh.
− The corridor features advanced “Namo Bharat” trains, with a design speed of 180 km/h and operational speed of
160 km/h, making it the fastest rapid transit train in India.
− The project is supported by multilateral funding from ADB, AIIB, and NDB, with a total cost exceeding ₹30,000
crore.

Impact
1. Travel Time and Connectivity:
− The RRTS will reduce travel time between Delhi and Meerut from 3–4 hours by road to about 1 hour.
− High-frequency services (every 5–10 minutes) will provide safe, reliable, and high-capacity commuter transit for the
National Capital Region (NCR).
2. Urban and Regional Development:
− The corridor supports transit-oriented development (TOD), boosting economic growth, real estate values, and job
opportunities along the route.
− Improved access to employment, education, and healthcare for peri-urban and suburban populations.
− Expected daily ridership is projected to reach 740,000 by 2028.
3. Environmental and Social Benefits:
− Annual reduction in CO₂ emissions is estimated at 258,000 tonnes by 2028, due to modal shift from private vehi-
cles to public transit.
Enhanced mobility and economic opportunities for women and people with disabilities through universal access
features.
− Significant reduction in vehicular congestion and air pollution in NCR.
4. Economic and Institutional Strengthening:
− The project stimulates regional economic activity and supports balanced development of Tier-2 and Tier-3 cities.
− NCRTC’s institutional capacity has been strengthened for future corridor development.

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Challenges
1. Implementation and Engineering
a. Complex Alignment: The 82 km corridor includes 70 km elevated and 12 km underground stretches, requiring
special spans and viaducts to cross highways, railways, rivers, and dense urban infrastructure.
b. Land Acquisition and Utility Shifting: Timely acquisition of land and shifting of utilities (power, water, sewer lines)
posed major hurdles, especially in congested urban areas.
c. COVID-19 Disruptions: The pandemic caused labor shortages and supply chain delays, but progress was largely
maintained through meticulous planning and risk mitigation.
2. Financial and Institutional
a. High Capital Expenditure: The project’s cost exceeds ₹30,000 crore, requiring coordinated funding from central,
state, and multilateral sources.
b. Operational Sustainability: Ensuring long-term financial sustainability and achieving projected ridership and reve-
nue targets remains a challenge.
3. Social and Environmental
a. Environmental Management: Construction led to deforestation, land use changes, and temporary disruptions,
mitigated by environmental management plans and green building practices.
b. Inclusive Development: Ensuring equitable benefits for peri-urban and informal communities, and integrating last-
mile connectivity, are ongoing priorities.

Way Forward
1. Complete Corridor Integration: Prioritize seamless integration with Delhi Metro, city bus services, and non-motorized trans-
port for last-mile connectivity.
2. Expand RRTS Network: Accelerate planning and approval of additional corridors (Delhi–Alwar, Delhi–Panipat) to extend
benefits across NCR.
3. Sustainability and Inclusivity: Strengthen environmental safeguards, promote green infrastructure, and ensure affordable,
accessible services for all user groups.
4. Institutional Capacity: Continue building NCRTC’s capacity for project management, innovation, and stakeholder engage-
ment.

Rail Safety in India

Key Data and Trends
1. Decline in Train Accidents
a. Consequential train accidents have dropped sharply from 473 in 2000-01 to 48 in 2022-23.
b. The average annual accidents fell from 171 (2004-14) to 71 (2014-23).
c. Accidents per Million Train Kilometres (APMTKM) reduced from 0.11 in 2014-15 to 0.03 in 2023-24, a 73%
improvement.
2. Investment and Expenditure
a. Track renewal expenditure rose from ₹47,038 crore (2004-14) to ₹1,09,577 crore (2014-24).
b. Bridge rehabilitation, signalling upgrades, and rolling stock modernization have all seen significant increases in
funding.
c. Unmanned Level Crossings (UMLCs) on broad gauge were eliminated by January 2019.
3. Technological and Operational Improvements
a. Electronic interlocking at 6,427 stations (as of May 2023).
b. Kavach system (Automatic Train Protection) deployed on 1,465 route km and 121 locomotives, with major expan-
sion underway.
c. Fire and smoke detection systems in over 19,000 coaches, and fire extinguishers in 66,840 non-AC coaches.
d. Track machines increased from 748 (2014) to 1,661 (2024), improving mechanized maintenance.

Achievements
1. Steep reduction in accidents: Data from PIB and government reports confirm a sustained decline in accident numbers and
severity.
2. Elimination of UMLCs: This has removed a major cause of fatalities and accidents.
3. Massive investment: The creation of the Rashtriya Rail Sanraksha Kosh (RRSK) and increased capital expenditure have
enabled modernization and safety upgrades.
4. Adoption of technology: Introduction of Kavach, electronic interlocking, and modern rolling stock has reduced human error
and improved operational safety.

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Persistent Challenges
1. Human error and maintenance lapses: Despite technology, human error and maintenance shortfalls remain leading causes
of derailments.
2. Inspection Gaps: CAG audits highlight shortfalls (30-100%) in track inspection schedules, directly impacting safety.
3. Resource constraints: High-density mixed-traffic networks and severe resource limitations challenge consistent safety
standards.
4. Vacancies in safety posts: Recruitment and training for safety-critical positions is an ongoing concern, though recent drives
have improved numbers.

The Way Forward

1. Policy and Institutional Measures
a. Strengthen monitoring and compliance: Implement robust, real-time monitoring systems for track and asset main-
tenance; ensure timely inspections and follow-up.
b. Expand Kavach and ATP systems: Accelerate deployment of Kavach and other ATP technologies across the entire
high-density network.
c. Continuous training and recruitment: Prioritize filling vacancies in safety categories and provide regular, updated
training for all safety-critical staff.
d. Independent safety audits: Regular third-party audits and transparent reporting of safety performance.
2. Technological and Infrastructure Upgrades
a. Mechanized maintenance: Increase the use of track machines and automated inspection tools to reduce human
error.
b. Modern rolling stock: Continue replacing older ICF coaches with LHB coaches and equip all coaches with fire
detection and suppression systems.
c. Bridge and signalling upgrades: Prioritize rehabilitation of old bridges and upgrade signalling systems to electronic
interlocking and automatic block signalling.
3. Cultural and Systemic Reforms
a. Safety-first culture: Embed safety as the top priority at every organizational level, even if it means sacrificing punc-
tuality or throughput6.
b. Transparent accountability: Ensure that lapses are investigated and corrective action is taken, not just at the oper-
ational but also at the managerial level7.
c. Public engagement: Increase awareness and cooperation with passengers and the public regarding safety proto-
cols and reporting hazards.

Shipping and Inland waterways

“Inland waterways transport is emerging as a game‑chang-
er—being both cost‑effective and environmentally friendly.”
- Prime Minister Narendra Modi

India’s shipping and inland waterways sector serves as

a strategic freight backbone, handling nearly 90% of the
country’s external trade by volume. It offers a highly
cost-effective and energy-efficient mode of transport,
particularly suited for bulk cargo such as coal, cement, and
agricultural commodities.

Key Data and Trends

1. Underutilized Potential: IWT forms only 2% of
modal share despite India having 20,000+ km of
navigable waterways; MIV-2030 targets raising it
to 5%.
2. Declared Waterways: 111 declared National
Waterways under the 2016 Act, yet only a few are
commercially active.
3. Ambitious Targets: Aim to move 200 MMT of
cargo via waterways by 2030—critical for reducing
logistic costs (currently ~13% of GDP).
4. Rapid Policy Push: Dedicated efforts under Mar-
itime India Vision and Sagarmala to mainstream
inland and coastal shipping.

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Budget 2025–26 Announcements

1. Maritime Development Fund (₹25,000 crore): Will ease long-term financing bottlenecks for port and vessel development.
2. Tonnage Tax & Financial Assistance: Extending benefits to inland vessels will incentivize private participation and vessel
modernization.
3. Tax Exemptions: Customs duty relief for shipbuilding inputs will reduce capital costs and promote India’s competitiveness in
global shipbuilding.
4. GIFT City Incentives: SEZ-based ship leasing, financing, and insurance support to attract international players and reduce
dollar outflow on leasing.

Advantages of Waterways
1. Ultra-Low Cost: At ₹0.25/tonne/km, waterways are 5–6x cheaper than road transport—significantly lowering end-user prod-
uct costs.
2. Carbon Efficiency: Inland vessels emit ~50% less CO₂ per tonne-km, supporting India’s Paris Agreement goals and National
Green Hydrogen Mission.
3. Traffic Decongestion: Diverts heavy cargo from overloaded roads and railways, reducing accidents, pollution, and mainte-
nance costs.
4. Enhances Logistics for NE & BIMSTEC: The India–Bangladesh Protocol Route enables access to the Northeast, integrating
with the Act East Policy.
5. Tourism & Rural Livelihoods: River cruises (e.g., Ganga Vilas) promote eco-tourism and create non-farm income in rural areas.

Environmental and Social Benefits

1. Low Ecological Footprint: Compared to roadways, water transport requires less land acquisition and causes less habitat
disruption.
2. Sustainable Urban Logistics: Inland freight corridors can reduce congestion in megacities—e.g., container movement in
Kolkata via NW-1.
3. Employment Creation: Port-led development under Sagarmala can generate 1 crore+ jobs over time—direct and indirect.
4. Balanced Regional Development: Helps integrate underdeveloped riverine regions with national markets and economic
hubs.

Challenges for Inland Waterways in India

1. Infrastructure and Navigability
a. Inadequate infrastructure: Many stretches of national waterways lack modern terminals, cargo handling facilities,
and proper jetties, limiting operational efficiency.
b. Seasonal navigability: River depth fluctuates due to monsoons and siltation, causing unreliable year-round naviga-
tion.
c. Dredging delays: Regular and scientific dredging is often insufficient, leading to shallow stretches and bottlenecks.
2. Multimodal Integration
a. Poor last-mile connectivity: Limited integration with road, rail, and coastal shipping networks hampers seamless
cargo movement.
b. Lack of multimodal logistics hubs: Absence of well-developed logistics parks and transshipment points reduces
overall efficiency.
3. Fleet and Technology Constraints
a. Aging and inefficient vessels: Much of the existing fleet is outdated, with limited adoption of eco-friendly or tech-
nologically advanced barges.
b. Limited indigenous shipbuilding: Domestic shipyards face challenges in producing modern, efficient vessels at
scale.
4. Regulatory and Policy Issues
a. Complex regulatory environment: Multiple agencies and overlapping jurisdictions create procedural delays in
permissions and clearances.
b. Tariff and policy inconsistencies: Non-uniform tariffs and lack of standardized regulations deter private invest-
ment and innovation.
5. Cargo and Commercial Viability
a. Low cargo volumes: Inland waterways currently handle less than 2% of India’s total freight, making commercial
operations less attractive for private players.
b. Limited cargo diversity: Over-reliance on bulk commodities; containerized and perishable cargo movement remains
minimal.
6. Environmental and Social Concerns
a. Ecological impact: Dredging, vessel movement, and terminal construction can disrupt riverine ecosystems and
aquatic biodiversity.
b. Community displacement: Infrastructure development may affect local communities dependent on river resources
for livelihood.

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7. Awareness and Skill Gaps

a. Low awareness among shippers: Many logistics players and shippers are unfamiliar with the cost and efficiency
benefits of inland waterways.
b. Skill shortages: Limited training and capacity-building for navigation, vessel operation, and waterway logistics.
8. International and Cross-Border Issues
a. Bilateral coordination: Cross-border navigation agreements with neighboring countries (e.g., Bangladesh, Nepal)
require continuous negotiation and harmonization of standards.

Way Forward for Inland Waterways in India

1. Infrastructure Expansion and Modernization
a. Accelerate development of National Waterways: Prioritize completion and operationalization of key stretches,
especially on NW-1 (Ganga), NW-2 (Brahmaputra), NW-4 (Godavari-Krishna), and NW-5 (Brahmani-Mahanadi).
b. Upgrade terminals and jetties: Invest in modern cargo handling, passenger amenities, and digital tracking systems.
c. Dredging and navigational aids: Ensure year-round navigability through systematic dredging, installation of buoys,
and deployment of night navigation systems.
2. Multimodal Integration
a. Seamless connectivity: Integrate inland waterways with rail, road, and coastal shipping networks for efficient end-
to-end logistics.
b. Development of multimodal logistics parks: Establish hubs at strategic locations to facilitate cargo transfer and
storage.
3. Fleet Modernization and Sustainability
a. Promote eco-friendly vessels: Encourage adoption of LNG/electric-powered barges and retrofitting of existing
fleets to reduce emissions.
b. Indigenous shipbuilding: Support domestic shipyards through incentives and technology transfer for building mod-
ern, efficient vessels.
4. Policy, Regulation, and Private Sector Participation
a. Streamline regulations: Simplify permissions, standardize tariffs, and reduce bureaucratic delays to attract private
investment.
b. Public-Private Partnerships (PPP): Expand PPP models for terminal operation, dredging, and fleet management.
5. Cargo and Passenger Traffic Enhancement
a. Diversify cargo base: Target bulk commodities (coal, cement, fertilizers), containerized cargo, and perishable goods.
b. Promote passenger and cruise services: Develop river cruises, ferry services, and tourism circuits along major
waterways.
6. Technology Adoption and Digitalization
a. Digital tracking and management: Implement real-time cargo tracking, e-documentation, and smart traffic man-
agement systems.
b. Data-driven planning: Use GIS, satellite imagery, and predictive analytics for route optimization and demand fore-
casting.
7. Environmental and Social Safeguards
a. Sustainable dredging and operations: Adopt best practices to minimize ecological impact and protect aquatic
biodiversity.
b. Community engagement: Involve local communities in planning and ensure their livelihoods are protected, espe-
cially those dependent on riverine ecosystems.

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CHAPTER 8

Primary, Secondary
and Tertiary sector
Industries

Primary Sector
Previous year Questions
[2014] Why did the Green Revolution in India virtually by-pass the eastern region despite fertile soil and good availability of water?
[2014] Whereas the British planters had developed tea gardens all along the Shivaliks and Lesser Himalayas from Assam to Himachal
Pradesh, in effect they did not succeed beyond the Darjeeling area. Explain.
[2017] Mention the advantages of the cultivation of pulse because of which the year 2016 was declared as the International Year of
Pulses by the United Nations.
[2017] In spite of adverse environmental impact, coal mining is still inevitable for development.” Discuss.
[2021]Despite India being one of the countries of the Gondwanaland, its mining industry contributes much less to Gross Domestic
Product (GDP) in percentage. Discuss.
[2023] From being net food importer in 1960s, India has emerged as a net food exporter to the world. Provide reasons.

Agriculture
“Agriculture is the backbone of the livelihood security system of nearly 700 million people in the country and we need to build our
food security on the foundation of home-grown food.”
— M. S. Swaminathan, renowned agronomist and architect of India’s Green Revolution

India’s agricultural sector has shown strong resilience, supported by consistent growth and proactive government initiatives aimed
at boosting productivity, promoting crop diversification, and enhancing farmers’ incomes. While climate variability poses challenges,
income diversification through allied activities like animal husbandry, fisheries, and agroforestry helps farmers manage risks more
effectively. Targeted schemes further strengthen this adaptability.

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Key data from Economic Survey 2024-25

1. Sectoral Contribution and Growth
a. Share of GDP (FY24): 16% of
the country’s GDP
b. Population Supported: 46.1%
of India’s population
c. Annual Growth Rate (FY17–
FY23): 5% per year
d. Agricultural Income Growth
(past decade): 5.23% annually
e. Non-Agricultural Income
Growth (past decade): 6.24%
annually
2. Production and Output
a. Kharif Foodgrain Production
(2024): 1647.05 Lakh Metric
Tonnes (LMT)
b. Increase in Kharif Produc-
tion (2024 over previous
year): 89.37 LMT
c. India’s Share in Global Cereal Output: 11.6%
d. Crop Sector CAGR (FY13–FY22): 2.1%
e. Oilseeds Growth Rate: 1.9%
3. High-Value Sectors
a. Fishery Sector CAGR (FY15–FY23): 13.67%
b. Livestock Sector CAGR (FY15–FY23): 12.99%
c. Fish Production (FY23): 184.02 lakh tonnes
4. Institutional Support and Coverage
a. Kisan Credit Card (KCC) Accounts (March 2024): 7.75 crore
b. Farmers Enrolled under PM-KISAN: Over 11 crore

India vs China: Agriculture Comparison

Sector Overview
Indicator India China
Share of GDP (2024-25) ~16% ~7.3% (2023 est.)
Population Dependent ~46% ~25%
Arable Land 156 million ha 120 million ha
Irrigated Area 48% of cultivated area 41% of cultivated area
Gross Cropped Area 198 million ha 166 million ha
R&D Spend (% of Agri GVA) 0.35% 0.8%

Production and Productivity

• Grain Production (2025 Target):
− India: ~330 million tonnes (2023-24 actual: 355.25 million tonnes for horticulture)
− China: >770 million tonnes
• Productivity (Rice Example):
− India: ~3 tonnes/hectare
− China: ~6.5 tonnes/hectare
• Output per Hectare:
− India: $1,900/ha
− China: $5,900/ha

Government Support and Policy

• India:
− Focus on food security, farmer income, and sustainability.
− Major schemes: PM-KISAN, crop insurance, support for pulses and cotton, and organic/natural farming.

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− Lower direct market incentives; negative Producer Support Estimate (PSE) of -5.7% (2019).
− High input subsidies, but restrictive marketing/trade policies.
• China:
− Strong focus on food security, rural revitalization, and modernization.
− Heavy investment in agri-R&D, biotechnology, and mechanization.
− PSE of 15.3% (2019) — Chinese farmers receive net positive support.
− Aggressive commercialization of GM crops and digital agriculture.

Mechanization and Technology

• India:
− Higher tractor sales (~1 million units/year), but overall mechanization is lower (~47%)5.
− Gradual adoption of agri-tech and precision farming.
• China:
− Fewer tractor sales, but higher mechanization (60-75%).
− 98% of rice farming is mechanized vs. ~50% in India5.
− Rapid adoption of biotechnology, digital tech, and high-yield seeds.

Challenges
India China
Small landholdings, low productivity per hectare Land consolidation, but high pressure on limited arable land
High rural population dependence Aging rural workforce, urban migration
Input subsidies, but low market price realization Over-reliance on imports for some agri-products (e.g., oilseeds)
Climate vulnerability, water stress Extreme weather events, ecological sustainability
Low R&D investment, slow tech adoption High R&D investment, rapid tech adoption

Recent Reforms and Trends

• India: Push for organic/natural farming, cluster-based horticulture, and increased credit limits for Kisan Credit Cards.
• China: Focus on high-standard farmland, GM crop commercialization, digital agriculture, and rural modernization.

Key Takeaways
• China outpaces India in agricultural output and productivity, despite having less arable land and fewer people engaged in
agriculture.

• China’s higher investment in R&D, mechanization, and market support policies drive its superior performance.
• India’s strengths lie in its large arable area and rural workforce, but it needs greater investment in technology, research,
and market reforms to close the productivity gap.

Fisheries Sector in India

Overview and Economic Significance

1. India is the world’s second-largest fish producer, contributing approximately 8% of global fish production.
2. The sector supports over 28 million livelihoods directly and indirectly, playing a vital role in food security, employment, and
rural income generation.
3. Share in GVA: Fisheries contributed about 1.12% of India’s total Gross Value Added (GVA) and 7.26% of agricultural GVA
in 2022-23.
4. Fish production reached a record 195 lakh tonnes (19.5 million tonnes) in 2024-25, more than doubling since 2013-14.

Growth Trends and Drivers

1. Average annual growth rate: 6.3% over the last five years; some estimates cite growth rates up to 11% since 2014-15.
2. Inland fisheries and aquaculture have seen a 140% increase since 2013-14, now accounting for over 75% of total output.
3. Marine fisheries also expanded, but at a slower pace compared to inland aquaculture2.
4. Seafood exports reached ₹60,500 crore in 2024-25, with India emerging as a global leader in shrimp exports (shrimp pro-
duction up 270% in the last decade).

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Key States and Regional Patterns

State Contribution/Notes
Andhra Pradesh Top inland fish producer, major aquaculture hub
West Bengal Largest fish market share (19.7% in 2024)
Karnataka, Kerala, Gujarat, Tamil Nadu, Maharashtra Key marine and inland contributors

Policy Initiatives and Investments

• Government investment: Over ₹38,500 crore infused since 2015 for holistic sectoral development.
• Union Budget 2025-26: Highest-ever allocation of ₹2,703.67 crore for fisheries, with a focus on financial inclusion, credit
access (KCC limit raised to ₹5 lakh), and sustainable marine resource utilization.
• Flagship schemes: Pradhan Mantri Matsya Sampada Yojana (PMMSY), Blue Revolution, infrastructure upgrades, and tech-
nology adoption (e.g., drone-based monitoring, cold chain development).

Opportunities and Strengths

1. Rising domestic demand for protein-rich diets and health awareness is fueling growth in fish consumption.
2. Export potential remains robust, especially for shrimp and value-added products, though the share of value-added exports is
still low (~7%).
3. Technological innovation: Initiatives like drone-based fish transport, improved aquaculture practices, and digital supply
chains are enhancing productivity and sustainability.
4. Employment generation: The sector is a major source of jobs, including for women and marginalized communities.

Challenges
1. Infrastructure gaps: Inadequate cold storage, processing, and transport facilities lead to post-harvest losses and limit mar-
ket access.
2. Financial access: Small fishers often struggle to obtain credit for modern equipment and technology.
3. Environmental concerns: Water pollution, overfishing, shrinking fish farming areas due to urbanization, and unpredictable
monsoons threaten sustainability.
4. Regulatory and market issues: Inefficient market channels, poor price discovery, and dependence on a few export markets/
products increase vulnerability.
5. Research and extension: Limited research and weak extension services hinder the adoption of new technologies and best
practices.

The Way Forward

1. Sustainable practices: Promote responsible aquaculture, enforce regulations against overfishing, and encourage adoption of
FAO’s Code of Conduct for Responsible Fisheries.
2. Infrastructure development: Invest in cold chains, processing units, and logistics to reduce post-harvest losses and improve
export competitiveness.
3. Financial inclusion: Expand credit facilities and insurance coverage for small-scale fishers and farmers.
4. Technology adoption: Scale up innovations such as drone monitoring, digital marketplaces, and climate-resilient farming
methods.
5. Research and capacity building: Strengthen research institutions, extension services, and training programs to improve
productivity and sustainability.
Market diversification: Enhance value addition, branding, and access to new export markets to reduce dependence on a few
products or destinations.

Horticulture in India
Overview and Economic Significance
• India is the world’s second-largest producer of horticultural crops, trailing only China.
• The horticulture sector contributes about 33% to the agriculture Gross Value Added (GVA), making it a critical driver of
agricultural growth and rural livelihoods12.
• Horticulture includes fruits, vegetables, spices, flowers, medicinal and aromatic plants, and plantation crops.

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Production and Growth Trends

Indicator 2023-24 2024-25 (Est.) Growth (%)
Total Horticulture Production 354.74 million t 367.72 million t 3.66%
Area under Horticulture (Mha) 29.08 29.27 0.65%
Fruit Production 1,130.70 lakh t 1,145.10 lakh t 1.36%
Vegetable Production 2,072.30 lakh t 2,196.74 lakh t 6.0%

• Vegetable output saw the strongest growth, with notable increases in onion (up 26%) and potato (up 5.5%) production.
• Fruit production also rose, driven by crops like mango and banana.
• Horticulture production continues to exceed foodgrain output in absolute terms, underlining its growing importance.

Key Drivers and Government Initiatives

1. Mission for Integrated Development of Horticulture (MIDH): The flagship centrally sponsored scheme supports holistic
growth covering all horticulture crops. It operates through sub-missions and provides funding for infrastructure, capacity
building, and technology adoption.
2. Horticulture Cluster Development Programme (CDP): Focuses on developing 53 identified clusters for market-led, inte-
grated growth, aiming to make Indian produce globally competitive and boost exports by 20%.
3. Clean Plant Programme (CPP): Launched in 2024, this initiative ensures access to high-quality, virus-free planting material,
aiming to enhance productivity and export potential, especially for fruit crops.
4. Post-Harvest Infrastructure Development Scheme: Supports cold storage, pack houses, and processing units to reduce
post-harvest losses and improve returns for farmers.
5. Insurance and Credit: Horticulture crops are covered under the Pradhan Mantri Fasal Bima Yojana (PMFBY), and farmers
benefit from expanded Kisan Credit Card (KCC) access.

Strengths and Opportunities

1. Diverse agro-climatic zones enable cultivation of a wide variety of horticultural crops year-round.
2. Export potential is rising, especially for fruits, vegetables, and value-added products, supported by government initiatives to
improve quality and branding67.
3. Technological advances (protected cultivation, precision farming, improved planting material) are enhancing productivity
and resilience.
4. Employment generation: The sector provides significant rural employment, including for women and marginal farmers.

Challenges
1. Post-harvest losses remain high due to inadequate cold chain and processing infrastructure.
2. Smallholder fragmentation limits economies of scale and adoption of advanced technologies.
3. Market volatility and price fluctuations, especially for perishable crops, affect farmer incomes.
4. Climate vulnerability: Horticultural crops are sensitive to extreme weather, pests, and diseases.
5. Quality and export standards: Meeting international phytosanitary and quality standards is a persistent challenge for ex-
panding exports.

The Way Forward

1. Expand infrastructure: Invest further in cold chains, processing, and logistics to reduce losses and boost exports.
2. Promote cluster-based and value-chain approaches: Scale up cluster development and integrate smallholders into modern
value chains.
3. Enhance research and extension: Focus on climate-resilient varieties, pest management, and digital advisory services.
4. Strengthen market linkages: Expand e-NAM and other digital platforms for better price discovery and direct market access.
5. Boost financial and insurance coverage: Ensure wider and easier access to credit and risk mitigation tools for small and
marginal farmers.

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Sugar Industry in India

Overview and Global Standing
1. India is the world’s largest sugar producer and second-larg-
est consumer, playing a foundational role in global sugar
markets.
2. With over 28 million farmers and their families reliant on sug-
arcane, the industry is a vital part of the rural economy.
3. India consistently ranks among the top sugar exporters,
although government controls on exports fluctuate depending
on domestic conditions.

Key Data: Production, Consumption,

Exports
1. Production (2024-25): Output dipped to around 25.5–26.0
MMT (after adjusting for ethanol diversion), a five-year low, due
to adverse weather and lower cane yield, notably in Maharash-
tra and Karnataka.
2. Consumption: Steady growth, projected at 28–31 MMT, driv-
en by domestic food demand and the food service sector.
3. Exports: Tightened export controls since 2023, with about
0.9–1.0 MMT permitted in 2024-25 to ensure adequate do-
mestic supply and price stability.

Major States and Regional Patterns

1. Uttar Pradesh: Largest producer with over 9 MMT of sugar in 2024-25.
2. Maharashtra: Second largest, around 8 MMT.
3. Karnataka: Significant contributor, at about 4 MMT.
4. Tamil Nadu and Gujarat also make notable contributions, with regional variations based on weather and irrigation.

Policy, Regulatory and Industry Structure

Sugar (Control) Order, 2025
• A sweeping update, replacing the Sugar Control Order, 1966. Key highlights:
a. Mandates digital integration: All sugar mills must integrate with the Department of Food and Public Distribution
(DFPD) via ERP/APIs for real-time production/sales data.
b. Unified Minimum Sale Price (MSP): Maintains price controls, supports stability, and protects farmers.
c. Expanded regulation to khandsari units: Large khandsari mills are now under the FRP regime for cane pricing,
improving payment equity for farmers.
d. Focus on transparency: Digital monitoring and GST-linked sales data for accountability and industry oversight.
e. Support for diversification: Clear rules for diversion of sugarcane to ethanol, khandsari, and jaggery.
f. Stockholding limits and export quotas: Continue to be used to ensure domestic supply and price moderation.

Other Major Policies and Reforms

1. Fair and Remunerative Price (FRP): 4% hike for 2025-26 to ₹355/quintal, strengthening farmer income.
2. Ethanol Blending Programme: Significant portion of sugar diverted to ethanol—about 3.5–3.8 MMT in 2024-25, projected
to rise further as India pursues 20% ethanol blending in petrol.
3. Export Restriction: Ongoing restrictions, but managed quotas are allowed to balance farmer and consumer interests.
4. Modernization push: Digital reporting, better transparency, and strict quality controls.

Growth Drivers
1. Steady demand expansion—especially from the food processing, beverage, and hospitality sectors.
2. Government support for ethanol blending—providing mills with additional revenue streams and reducing the sugar surplus
problem.
3. Improving yields and area: Positive monsoon outlooks, increased cane planting projected to boost output to 35 MMT in
2025-26.

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Challenges
1. Production Volatility: Heavily dependent on monsoons and irrigation. Drought, pests (like red rot), and declining groundwater
can sharply reduce yields, as seen in 2023-24.
2. Overcapacity in some states and obsolete technology in smaller mills impacts efficiency.
3. Payment Delays: While reforms have improved payment timelines, occasional backlogs persist in cane payment to farmers,
especially in private sector mills.
4. Ethanol Policy: Rapid scale-up to E20 blending may affect future sugar supply if not carefully balanced.
5. Global Competition: Surplus years invite dumping accusations and fluctuating global prices affect export competitiveness.
6. Environmental Concerns: High water use and land stress in key states.
7. Price Stability: With exports capped, excess supply during bumper years can reduce prices and strain mill finances.

Recent Developments and Trends

1. Digital transformation: Over 450 mills integrated with the government’s DFPD portal; real-time production/sales tracking is
now standard.
2. Diversification: Record sugar diversion to ethanol, supporting India’s bioenergy goals.
3. Export policy evolution: After severe curbs in 2023–24, limited quotas were restored in 2024–25, with ongoing reviews
based on supply.

The Way Forward

1. Sustain transparency and digital reporting for accurate, real-time regulation and payment tracking.
2. Balance ethanol and sugar production to ensure food and energy security, with careful, adaptive policy.
3. Promote sustainable practices: Invest in less water-intensive cane, better irrigation, and modernization.
4. Industry consolidation and tech upgrades: Support economically stressed mills in adopting new technologies.
5. Farmer welfare: Ensure prompt and equitable payments, especially as khandsari and jaggery units come under FRP ambit.
6. Global competitiveness: Encourage exports strategically, leveraging strong years while protecting domestic interests.

Major Government Initiatives in the Agriculture Sector

1. Direct Income Support and Financial Inclusion
a. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
i. Overview: Provides ₹6,000 per year to all landholding farmer families in three equal installments via Direct
Benefit Transfer (DBT).
ii. Scale: Over 11 crore farmers have benefited; more than ₹3.46 lakh crore disbursed in 18 installments as
of February 2025.
iii. Impact: Acts as a financial lifeline for small and marginal farmers, supports input purchases, and boosts
rural consumption. Recent saturation drives have expanded coverage, especially among women and left-
out eligible farmers.
iv. Critical View: While effective in providing liquidity, the amount is modest relative to rising input costs.
Exclusion errors and land record issues persist.
2. Crop Insurance and Risk Mitigation
a. Pradhan Mantri Fasal Bima Yojana (PMF-
BY)
i. Overview: Offers insurance
against crop loss due to natural
calamities, pests, or diseases.
Premiums are subsidized: 2% for
Kharif, 1.5% for Rabi, and 5% for
commercial/horticulture crops,
with the remainder covered by
central and state governments.
ii. Recent Data: Kharif 2025 and
Rabi 2025-26 enrolments open
until July 31, 2025. Both loanee
and non-loanee farmers are eligi-
ble.
iii. Impact: Reduces farmers’ vulnerability to climate shocks and crop failures, stabilizes incomes, and encour-
ages adoption of modern practices.
iv. Critical View: Delays in claim settlement and low awareness in some regions remain challenges.

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3. Infrastructure and Modernization

a. Agriculture Infrastructure Fund (AIF)
i. Overview: ₹1 lakh crore financing facility for post-harvest management infrastructure (cold storage, ware-
houses, processing units) at farm-gate and aggregation points.
b. Impact: Reduces post-harvest losses, improves value addition, and enhances farmers’ bargaining power by enabling
better storage and market access.
c. Critical View: Uptake is stronger among larger FPOs and agribusinesses; smallholders need more handholding and
awareness.
d. Sub-Mission on Agricultural Mechanization (SMAM)
e. Overview: Subsidizes purchase of tractors, harvesters, and other machinery, with special focus on women and
small/marginal farmers.
f. Impact: Enhances productivity and reduces drudgery, but mechanization rates in India still lag behind global lead-
ers89.
4. Sustainable and Organic Farming
a. Paramparagat Krishi Vikas Yojana (PKVY)
i. Overview: Promotes organic farming via cluster-based approaches, providing subsidies for organic inputs
and certification.
ii. Scale: As of 2025, nearly 15 lakh hectares and over 25 lakh farmers covered.
iii. Impact: Boosts soil health, reduces chemical input use, and creates export opportunities for organic pro-
duce.
iv. Critical View: Scaling up remains a challenge due to market linkages and certification bottlenecks.
5. Irrigation and Water Management
a. Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)
i. Overview: Aims for “Har Khet Ko Pani” (water to every farm) through micro-irrigation, watershed develop-
ment, and efficient water use.
ii. Impact: Expands irrigated area, improves resilience to drought, and promotes water-use efficiency.
iii. Critical View: Implementation varies across states; maintenance of assets and last-mile delivery need
strengthening.
6. Allied Sector Initiatives
a. Rashtriya Gokul Mission (RGM) & National Program for Dairy Development (NPDD)
i. Overview: Focus on genetic improvement, animal health, and infrastructure for dairy and livestock sectors.
ii. Recent Boost: Additional outlays in 2025 to modernize dairying and enhance livestock productivity, sup-
porting rural incomes and nutrition.
b. Fisheries and Allied Schemes
i. Overview: Flagship schemes like Pradhan Mantri Matsya Sampada Yojana (PMMSY) drive investments in
aquaculture, marine fisheries, and cold chain development.
c. Impact: India is now the world’s second-largest fish producer, with sectoral growth outpacing most other agri-seg-
ments.
7. New and Emerging Initiatives
a. Prime Minister Dhan-Dhaanya Krishi Yojana (2025)
i. Overview: Introduced in the 2025 budget, this flagship scheme focuses on direct cash transfers, digital
integration, skill development, and improved market linkages for farmers.
ii. Potential: Aims to be a game-changer by leveraging technology and capacity building, but its effective-
ness will depend on robust implementation and grassroots reach.
b. Digital Agriculture Mission 2025
i. Overview: Integrates AI, digital platforms, and smart technologies for precision farming, market access,
and transparent benefit delivery.
ii. Impact: Promises to transform farm management and data-driven decision-making, though digital literacy
and infrastructure gaps remain.
8. Other Key Schemes
Scheme/Initiative Focus Area Recent Highlights (2025)
Rashtriya Krishi Vikas Yojana State-driven agri-development, Enhanced state flexibility, cluster-based models
(RKVY) infrastructure, entrepreneurship
PM Kusum Yojana Solarization of irrigation, energy Up to 60% subsidy for solar pumps
savings
National Mission for Sustainable Climate resilience, soil health Expanded focus on carbon-neutral farming
Agriculture (NMSA)

Critical Analysis
• Strengths: Direct income support, insurance, and infrastructure funding have improved resilience and reduced distress.
Focus on sustainability, digitalization, and allied sectors reflects a holistic approach.
• Challenges: Implementation gaps, exclusion of tenant and landless farmers from some schemes, delays in insurance pay-
outs, and regional disparities in uptake.

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Way Forward:
• Accelerate digital and financial inclusion.
• Strengthen last-mile delivery, especially for smallholders and women.
• Enhance convergence between schemes for greater impact.
• Foster public-private partnerships and invest in research, extension, and market reforms.

Mining Sector in India

Overview and Economic Significance
1. Contribution to GDP: The mining sector contributes about 2.5% to India’s GDP, supporting millions of direct and indirect
jobs.
2. Employment: Employs approximately 1.25 crore people.
3. Production Value: The estimated value of mineral production for 2024-25 is ₹1.48 lakh crore, up from ₹1.40 lakh crore in
2023-24.
4. Number of Working Mines: Around 1,206–1,426 operational mines.

Production and Growth Trends

Mineral Growth YoY 2024-25 (%)
Iron Ore 4.3%
Manganese Ore 11.8%
Bauxite 2.9%
Refined Copper 12.6%

1. Iron ore accounts for 70% of total mineral production by value and India is the 4th largest iron ore producer globally.
2. Aluminium: India is the second-largest producer globally.
3. Refined Copper: India ranks among the top 10 global producers5678.

Major Reforms & Government Initiatives

1. Auction-based allocation: All mineral concessions are now allocated via transparent auctions, increasing efficiency and
reducing corruption.
2. Critical Minerals Focus: The National Critical Mineral Mission (NCMM) was launched in 2025 to boost self-reliance in
minerals like lithium, cobalt, and rare earths, crucial for clean energy and technology.
3. Mining Lease Reforms: Uniform lease period of 50 years, with the introduction of exploration licences for strategic minerals.
4. District Mineral Foundation (DMF) & National Mineral Exploration Trust (NMET): These have improved local development
and exploration funding.
5. Incentives for Recycling and Mineral Recovery: New policies promote mineral recovery from mining tailings and recycling of
critical minerals, enhancing sustainability.
6. State Mining Index: Introduced to rank states by mining sector performance and encourage competitive reforms.

Strengths and Opportunities

1. Abundant Resources: India has about 95 mineral deposits and ranks among the top global producers of iron ore, bauxite,
manganese, aluminium, and zinc.
2. Growing Demand: Robust demand from steel, infrastructure, construction, automotive, and energy sectors is driving produc-
tion growth.
3. Private Sector Role: Private companies contribute 60% of industry revenue, fostering competition and investment.
4. Strategic Minerals: Recent discoveries (e.g., 5.9 million tonnes of lithium in Jammu & Kashmir) position India as a future lead-
er in energy-transition minerals.

Challenges
1. Environmental Impact: Mining activities often lead to land degradation, water pollution, and ecological disruption.
2. Safety and Social Issues: Worker safety and rehabilitation of mining-affected communities remain concerns.
3. Regulatory Hurdles: Complex regulations, delays in clearances, and legal disputes can slow project execution.

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4. Import Dependence: Despite abundant resources, India still imports certain minerals (e.g., copper, phosphorite, coal) to meet
domestic demand.
5. Small-scale Operations: The sector is dominated by small mines, which can limit economies of scale and technological
adoption.

Recent Trends and Developments

1. Record Production: FY 2024-25 saw all-time highs in iron ore, manganese, bauxite, aluminium, and copper production,
reflecting strong industrial activity and policy support.
2. Technological Advancements: Increased use of digital monitoring, automation, and sustainable mining practices.
3. Clean Energy Transition: Mining of critical minerals is prioritized for supporting renewable energy, electric vehicles, and
battery manufacturing.

The Way Forward

1. Sustainable Mining: Emphasize environmentally responsible mining, rehabilitation of mined areas, and community develop-
ment.
2. Infrastructure Investment: Enhance logistics, transport, and processing facilities for greater efficiency.
3. Policy Simplification: Streamline regulatory processes and ensure timely clearances for new projects.
4. Skill Development: Invest in training and upskilling the mining workforce for modern technologies.
5. Global Competitiveness: Focus on value addition, export promotion, and integration into global supply chains for critical
minerals.

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Secondary Sector
Previous year Questions
[2013] Analyze the factors for the highly decentralized cotton textile industry in India.
[2013] Do you agree that there is a growing trend of opening new sugar mills in the Southern states of India? Discuss with justification
[2017] Petroleum refineries are not necessarily located nearer to crude oil producing areas, particularly in many of the developing
countries. Explain its implications.
[2018] What is the significance of Industrial Corridors in India? Identify industrial corridors, explain their main characteristics.
[2019] Discuss the factors for localization of agro-based food processing industries of North-West India.
[2019] Can the strategy of regional-resource based manufacturing help in promoting employment in India?
[2014] Account for the change in the spatial pattern of the Iron and Steel industry in the world.

Industrial Corridors
Industrial corridors are large-scale infrastructure projects designed to foster manufacturing, attract investment, and promote
planned urbanization by linking key economic hubs through integrated networks of roads, railways, ports, and smart cities. India’s
National Industrial Corridor Development Programme (NICDP) is at the core of this transformation, aiming to create globally
competitive manufacturing hubs and drive economic growth.

Major Industrial Corridors

.
Key Features and Innovations
1. Plug-n-play infrastructure: Immediate operational readiness for industries.
2. Single-window clearances: Streamlined approvals and ease of doing business.
3. Sustainable development: Emphasis on green technologies, ICT integration, and environmental stewardship.
4. Integrated planning: Collaboration with state governments, alignment with logistics and urban planning.

Recent Developments
1. In August 2024, the Cabinet approved 12 new industrial cities/nodes across 10 states, with an investment of ₹28,602
crore. Groundwork for these smart cities begins in 2025, aiming for completion within three years.
2. As of 2025, 11 major corridors are in various stages of development, with 32+ development nodes identified

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3. These cities are planned as greenfield smart cities with advanced infrastructure, “plug-n-play” facilities, and “walk-to-work”
concepts, built ahead of demand to attract both large industries and MSMEs.
4. The NICDP aligns with the PM Gati Shakti National Master Plan for multimodal logistics, ensuring seamless connectivity
and efficient supply chains.

Economic and Social Impact

1. Industrial Growth and Investment
a. Corridors are designed to attract domestic and foreign investment, foster manufacturing, and integrate India into
global value chains.
b. They provide ready-to-use land parcels and robust infrastructure, reducing project gestation and operational costs.
2. Employment Generation
a. Projected to create over 1 million direct and 3 million indirect jobs through new industries, logistics, and ancillary
services.
b. Skill development centers and training hubs are being established near industrial nodes to enhance employability.
3. Infrastructure and Urbanization
a. Massive investments in roads, expressways, freight corridors, power, and water supply.
b. Development of smart cities and planned urban townships, improving living standards and reducing migration pres-
sure on metros.
4. Balanced Regional Development
a. Corridors are strategically located to uplift backward regions, promote inclusive growth, and reduce regional eco-
nomic disparities.
b. Example: AKIC aims to spur industrialization in eastern states like Bihar and Jharkhand.
5. Boost to MSMEs and Startups
a. Special Economic Zones (SEZs), technology parks, and cluster-based approaches foster MSME growth and innovation.

Challenges in Industrial Corridor Development

1. Disjointed Planning and Governance Gaps
− Poor coordination between industrial infrastructure and urban development (e.g., housing, mobility, waste systems).
Local urban bodies are often bypassed in planning, affecting service delivery and livability.
− Example: In some DMIC nodes, industrial zones have progressed faster than planned urban settlements, leading to
ghost infrastructure.
2. Land Acquisition and Regulatory Bottlenecks
− Land aggregation is hindered by fragmented ownership, unclear titles, and community resistance. Environmental and
forest clearances often delay timelines.
− Example: The Bengaluru–Mumbai Industrial Corridor faced delays due to land disputes and environmental concerns
in Maharashtra.
3. Sustainability and Environmental Risks
− Rapid industrialization increases pressure on water, waste, and energy systems. Inadequate environmental safe-
guards can lead to resource depletion and social displacement.
− Example: In Gujarat’s PCPIR zone, concerns have been raised over ecological degradation in coastal and estuarine
ecosystems.
4. Financing and PPP Constraints
− Delays in financial closure and lack of long-term patient capital for trunk infrastructure (rail, power, ICT) pose a hur-
dle. PPP models often suffer from poor risk allocation.
5. Inclusion and Skill Gaps
− Limited integration of local workforce, MSMEs, and skill ecosystems results in social exclusion and mismatch be-
tween employment creation and local needs.

Way Forward
1. Integrated Planning and Institutional Convergence
− Establish strong coordination between NICDC (National Industrial Corridor Development Corporation), state SPVs,
ULBs, and regional transport agencies.
− Use platforms like PM Gati Shakti for synchronized infrastructure deployment across sectors.
2. Expedited Land and Environmental Approvals
− Digitize land records and use land pooling for faster aggregation. Establish fast-track environmental appraisal mech-
anisms for low-impact green industries.
3. Green and Climate-Resilient Corridors
− Incorporate green buffers, low-carbon transport, zero-discharge norms, and renewable energy grids in all new corri-
dor plans.
− Example: The Dholera Special Investment Region (SIR) integrates solar parks and smart water recycling systems.
4. Boost Local Industry and MSME Integration
− Design MSME-focused zones with shared infrastructure (common effluent plants, logistics hubs). Encourage innova-
tion through incubation centers and industrial clusters.

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5. Social and Skill Development Linkages

− Establish ITIs, skilling hubs, and affordable housing near corridors to enable inclusive development. Ensure rehabili-
tation and compensation frameworks are robust and participatory.
6. Performance Monitoring and Adaptive Frameworks
− Institutionalize third-party monitoring, GIS-based dashboards, and social impact audits to track corridor outcomes
in real time. Flexibility in design must allow course correction.

Textile Industry in India

Overview and Economic Significance
1. India’s textile industry is among the largest globally, deeply
rooted in the country’s economic and cultural fabric.
2. The sector contributes about 2.3% to India’s GDP and is pro-
jected to reach 5% by 2030.
3. It is a major employer, providing direct jobs to 45 million people
and indirect employment to around 100 million in allied sec-
tors.
4. India is the second-largest producer of textiles and gar-
ments and the sixth-largest exporter globally, accounting for
8.2% of total exports in 2023-24.

Production, Exports, and Market Size

1. Exports are projected to reach $65 billion by FY26, with the
domestic market also expanding rapidly.
2. Technical textiles and personal protective equipment (PPE)
are emerging as growth drivers, with India now the world’s sec-
ond-largest PPE manufacturer.

Key Growth Drivers

1. Rising global demand for Indian textiles, especially in the US, Europe, and the Middle East.
2. Government initiatives such as the Production Linked Incentive (PLI) scheme, Mega Investment Textile Parks (MITRA),
and increased budgetary allocations (₹5,272 crore for 2025-26, up 19% from previous year).
3. Technological advancements: Automation, AI, digital textile printing, and smart textiles are enhancing productivity and
product offerings.
4. Sustainability: Growing global preference for eco-friendly and ethically produced goods is pushing Indian manufacturers to
adopt green practices.

Strengths and Opportunities

1. Complete value chain: From raw materials (cotton, jute, silk, and synthetics) to finished products, India has a robust and
diverse manufacturing base.
2. Rising domestic consumption: Driven by higher disposable incomes, urbanization, and a young, fashion-conscious popula-
tion.
3. Export potential: India’s share in global textile trade is expected to double to 10% by FY25.
4. Technical textiles: Rapid growth in sectors like healthcare, agriculture, and defense, supported by government incentives.

Challenges
1. Fragmented industry: Dominance of MSMEs limits economies of scale and efficiency, increasing logistical costs.
2. Raw material volatility: Fluctuations in cotton and synthetic fiber prices impact profitability.
3. Global competition: Countries like Bangladesh and Vietnam offer lower production costs, challenging India’s competitive-
ness.
4. Limited FDI and technology adoption: The sector has attracted relatively little foreign investment, leading to reliance on
imported machinery and slower technological upgrades.
5. Skill gaps: Persistent gaps in workforce skills hinder productivity and innovation6.
6. Environmental concerns: High water usage and chemical discharge require urgent adoption of sustainable practices.

Recent Trends and Developments

1. Export diversification: India is diversifying its export markets beyond traditional regions.
2. E-commerce boom: Online retail is expanding market access for smaller manufacturers and brands.
3. Supply chain resilience: Global shifts (e.g., “China +1” strategy) are prompting multinational brands to source more from
India.

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4. Investments: The industry is projected to attract $120–200 billion in investments by 2025, catalyzing job creation and
modernization.

Government Initiatives
• PLI Scheme: Incentivizes investment in high-value textiles, including MMF (manmade fiber) and technical textiles.
• PM MITRA Parks: Mega textile parks with integrated infrastructure to boost scale and competitiveness.
• Skill development: Training programs to bridge workforce skill gaps and promote innovation.
• Sustainability push: Policies and incentives for green manufacturing and circular economy models.

The Way Forward

1. Scale up MMF and technical textiles to align with global trends and reduce dependence on cotton.
2. Promote R&D and innovation for value-added, differentiated products.
3. Simplify regulations and improve ease of doing business to attract FDI and support MSMEs.
4. Invest in green technologies and sustainable practices to meet global standards and consumer expectations.
5. Strengthen supply chains and logistics to reduce costs and improve export competitiveness.

Iron and Steel Industry in India

Overview and Global Standing
1. India is the world’s second-largest producer of crude steel,
behind China. In 2024-25, India produced approximately
151.1 million metric tons (MT) of crude steel, reflecting a
robust 4.7% year-on-year growth.
2. The industry is central to India’s infrastructure drive, support-
ing sectors like construction, automobiles, transport, and
energy.
3. India’s steel consumption is projected to rise by 8.5% in
2025, among the highest global growth rates, fueled by rapid
urbanization, large-scale government infrastructure initiatives,
and growth in manufacturing.

Key Data: Production, Consumption, Ex-

ports
1. Capacity: India’s steel production capacity reached 198.5–
205 MT in FY25, up by almost 10% from the previous year.
2. Imports vs. Exports: India became a net importer of finished
steel for a second consecutive year in 2024-25. Imports rose 14.6% (to 9.5 MT), while exports fell by 35.1% (to 4.9 MT),
prompting the government to impose temporary safeguard duties to protect domestic producers.
3. Per Capita Consumption: Current per capita consumption is about 98 kg (2023-24), with a national target to reach 160 kg
by 2030.

Industry Structure and Major Players

1. The sector comprises both public and private players. The private sector produced around 84% of the national crude steel
output in 2024-25.
2. Major companies: Tata Steel, JSW Steel, Steel Authority of India Ltd. (SAIL), Jindal Steel & Power, and ArcelorMittal Nippon
Steel.
3. Production methods: Growth in both traditional blast furnace (up 17%) and induction furnace (up 9%) capacities in 2025,
with electric arc furnaces remaining stable.

Government Policies and Initiatives

1. National Steel Policy (NSP) 2017: Targets 300 MT capacity and 255 MT production of crude steel by 2030-31, with fin-
ished steel production of 230 MT.
2. Production Linked Incentive (PLI) Scheme for Specialty Steel: Allocates ₹29,500 crore for new investments to boost
specialty steel manufacturing, aiming for 25 MT additional capacity.

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3. Domestically Manufactured Iron & Steel Products (DMI&SP) Policy: Promotes ‘Make in India’ steel in government procure-
ment.
4. Quality Control Orders: Bans sub-standard steel; ensures only BIS-certified steel is available to end users.
5. Green Steel and Decarbonization: Adoption of best available technologies, participation in the National Green Hydrogen
Mission, and formation of task forces for energy efficiency and decarbonization in steel production.
6. Infrastructure push: Extensive demand growth is linked to mega infrastructure projects like the PM Gati Shakti Master Plan,
metro rail, expressways, and housing schemes.

Growth Drivers
1. Infrastructure Investment: Government capital expenditure and housing schemes are principal engines for growth5.
2. Urbanization and Industrialization: Rising urban populations and expansion of manufacturing drive steady steel demand.
3. Automobile and Engineering Sectors: Increased activity in these sectors boosts both flat and long steel consumption.

Challenges in India’s Iron and Steel Industry

1. Rising Imports and Global Competition- Despite being the 2nd largest steel producer globally, India has become a net
importer of finished steel in recent quarters due to cheap imports from countries like China, Vietnam, and Russia.
− Example: In FY2024–25, steel imports rose by over 25% YoY, while exports declined due to global demand slow-
down and pricing pressure.
2. Raw Material Security and Cost Volatility- Stable access to iron ore, coking coal, and steel scrap is crucial. While India is
self-reliant in iron ore, it imports over 85% of its coking coal, mainly from Australia.
3. Decarbonization and Green Steel Transition- The steel sector contributes nearly 12% of India’s industrial CO₂ emissions.
Global markets (e.g., EU’s Carbon Border Adjustment Mechanism) are increasingly demanding low-carbon or “green” steel.
− The Ministry of Steel’s draft policy targets net-zero steel production by 2070, but funding and technology gaps
remain.
4. Overcapacity and Domestic Demand Mismatch- India aims to raise its steel production capacity from 160 MTPA to 300
MTPA by 2030 under the National Steel Policy.
− Example- Overcapacity led to years of suppressed prices and unviable plants in China.
5. Environmental and Compliance Burden- Many small and medium steel plants struggle to meet rising environmental
norms, especially regarding water use, air pollution, and solid waste disposal.

Way Forward for India’s Iron and Steel Industry

1. Secure Raw Material Value Chains
− Long-Term Contracts & Exploration: Ensure stable coking coal supplies through overseas mining investments (e.g.,
Australia, Mozambique) and incentivize domestic exploration.
− Scrap Policy Implementation: Operationalize the Steel Scrap Recycling Policy to reduce import dependence and
lower emissions.
2. Green Steel Mission
− Technology Transition: Accelerate shift toward Electric Arc Furnaces (EAF) and Direct Reduced Iron (DRI) using
green hydrogen.
− Public–Private R&D Collaboration: Launch a Green Steel Technology Fund under a PPP model to support startups
and research in carbon-neutral processes.
− Global Link: Align with the EU’s CBAM compliance norms to avoid future export penalties.
3. Boost Domestic Demand and Downstream Integration
− Infra-Led Demand Creation: Integrate steel use targets in infra programs like Gati Shakti, PM Awas Yojana, and Rail
Vikas.
− Develop Ancillary Clusters: Encourage MSME linkages in downstream products (e.g., auto parts, appliances) to
create employment and absorb excess capacity.
4. Rational Capacity Expansion
− Demand-Based Planning: Encourage expansion based on regional demand forecasts and export potential, not just
production ambition.
− Disincentivize Idle Capacity: Link fiscal incentives to utilization rates and environmental performance, avoiding the
“China trap” of overproduction.
5. Digitalization and ESG Compliance
− Smart Plants: Promote adoption of Industry 4.0 tools—IoT, automation, and predictive maintenance—for efficient
operations.
− Mandatory ESG Reporting: Enforce ESG disclosures for large and medium plants to build investor confidence and
global competitiveness.
6. Ease of Doing Business and Fast-Track Clearances
− Single-Window Clearances: Streamline environmental and operational approvals, especially for greenfield projects.
− Infrastructure Support: Develop dedicated steel corridors and logistics hubs under PM Gati Shakti for raw material
and finished goods transport.

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Recent Trends and Outlook

1. CAGR: Steel demand in India is on a strong uptrend, with a Compound Annual Growth Rate (CAGR) of about 6.5% in finished
steel consumption over the past five years.
2. Specialty Steel: The specialty steel segment is expected to grow rapidly, reaching 42 MT by 2026-27.
3. Rising Domestic Demand: Forecasts indicate 8–9% steel demand growth for 2025, fueled by infrastructure, construction,
and manufacturing.
4. Net Importer Status: For the past two years, India has been a net importer of finished steel, with policies now focusing on
boosting domestic production and limiting imports.

Petrochemical Industry in India (2025)

Overview and Global Standing
1. India is among the world’s largest and fastest-growing petrochemical markets, with a current market size estimated at
$220 billion. The sector is projected to reach $300 billion by 2025 and further rise to $1 trillion by 2040, positioning it as a
global investment hotspot.
2. It contributes approximately 6% of India’s GDP and provides direct and indirect employment to over 5 million people.
3. The industry underpins a wide array of downstream sectors, including plastics, automotive, textiles, packaging, construc-
tion, electronics, and consumer goods.
4. India’s major petrochemical hubs include Gujarat, Maharashtra, Odisha, Tamil Nadu, and Andhra Pradesh, anchored by public
and private players such as IOCL, Reliance Industries, GAIL, HPCL, BPCL, ONGC, and Haldia Petrochemicals.

Industry Structure and Investment

1. Private sector dominance: Over 60% of production capacity is in the private sector, with major investments in integrated
complexes.
2. Downstream linkages: Strong backward (refining, pipelines) and forward (plastics, textiles) linkages support inclusive indus-
trial growth.
3. Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs): Four key PCPIRs—at Dahej, Paradeep, Cuddalore,
and Vishakhapatnam—anchor planned infrastructure development.
4. The PCPIR Policy 2020-35 targets investment of ₹10 lakh crore (~$142 billion) by 2025, supporting cluster-based industri-
alization and innovation.

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Key Government Policies and Reforms

1. 100% FDI allowed via the automatic route (except hazardous chemicals), attracting global players for joint ventures and
greenfield projects.
2. PCPIR Policy 2020-35: Incentivizes mega-infrastructure, R&D, technology parks, and ease of regulatory clearances.
3. Draft Petroleum & Natural Gas Rules (2025):
− Introduce a stabilization clause shielding investors from adverse future policy shifts.
− Mandate disclosure of underutilized infrastructure for regulated third-party access.
− Enable renewable energy integration and enforce environmental reporting, carbon capture, and post-closure moni-
toring.
4. Plastic Parks and Research Initiatives: Promote downstream industry growth, innovation, and employment through cluster
and park models receiving government support.
5. Sustainability Focus: Greater emphasis on cleaner technologies, circular economy principles, and green manufacturing.

Strengths and Growth Drivers

1. Growing domestic demand: Expanding middle class boosts use of petrochemical products (plastics, packaging, FMCG,
etc.).
2. Low per capita consumption: At 12 kg, India’s per capita petrochemical use is about one-third of the global average, sug-
gesting ample headroom for growth.
3. Strategic geographic location, skilled workforce, and cost advantages draw global investors.
4. Government’s push for Atmanirbhar Bharat and Make in India has energized both investments and domestic value addi-
tion.

Challenges Facing India’s Petrochemical Industry

1. Import Dependency for Feedstock
− India imports ~85% of its crude oil and large volumes of natural gas and naphtha—core inputs for petrochemical
manufacturing.
− This creates vulnerability to global price shocks, geopolitical tensions (e.g., West Asia conflicts), and forex pres-
sure, undermining cost competitiveness of domestic units.
2. High Transition Costs for Sustainability
− The industry faces pressure to reduce Scope 1 and 2 emissions, shift to bio-based or recycled feedstocks, and
adopt green chemistry practices.
− However, retrofitting existing plants and scaling up circular economy infrastructure (e.g., chemical recycling)
involves high capex and long gestation.
3. Technology and Innovation Gap
− India still lags behind global leaders (e.g., China, South Korea) in advanced polymers, composites, and specialty
chemicals.
− R&D spending is under 1% of industry turnover, and technology imports dominate high-value segments like car-
bon fibre, biodegradable plastics, or precision chemical engineering.
4. Fragmented Regulation and Policy Instability
− Multiple regulatory bodies (MoEFCC, CPCB, State PCBs, Petroleum Ministry) and lack of coordination result in
delays and compliance burden.
− Infrastructure bottlenecks (e.g., pipeline connectivity, inland freight logistics) slow capacity ramp-up and raise supply
chain costs.
5. Skilled Manpower Shortage and Brain Drain
− India lacks sufficient chemical engineers, polymer technologists, and safety/environment specialists, especial-
ly in Tier-2/3 clusters.
− Global firms attract top Indian talent due to better pay and R&D infrastructure, weakening domestic innovation
ecosystems.

Way Forward
1. Feedstock Security through Domestic Exploration and Diversification
− Accelerate domestic oil and gas exploration under OALP and increase natural gas grid penetration to reduce
reliance on volatile imports.

− Promote use of alternative feedstocks like bio-naphtha, ethanol derivatives, and plastic waste oil for circular feed-
stock security.
2. Green Transition via Incentives and Innovation
− Promote cluster-based common effluent treatment plants (CETPs) and green energy integration (solar, hydro-
gen) in industrial parks.
− Set clear roadmaps for carbon pricing and tax incentives to shift towards low-emission processes.

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3. Strengthen R&D and Scale-Up Infrastructure

− Establish Centre–State funded R&D hubs for petrochemicals in partnership with academia and industry.
− Prioritize public–private partnerships (PPPs) for pilot-scale demonstration units, particularly for green hydrogen,
bio-polymers, and advanced materials.
4. Regulatory Streamlining and Ease of Doing Business
− Develop a single-window clearance system for environmental and industrial approvals, especially for large petro-
chemical complexes.
− Harmonize regulations across MoPNG, MoEFCC, and CPCB to avoid compliance overlap and reduce turnaround
time.
5. Build Future-Ready Workforce and Regional Innovation Hubs
− Launch Petrochem Skill Missions under NSDC for chemical engineering, process safety, and green chemistry
roles.
− Set up Technology Innovation Zones (TIZs) in eastern and southern coastal states to leverage port-based econo-
mies and support value-added exports.
6. Foster Global Integration and Exports
− Enhance Free Trade Agreements to include provisions for export of specialty chemicals and refined petro prod-
ucts.
− Position India as a “China+1” hub for global investors by branding India as a cost-effective, sustainable, and compli-
ant production base.

Recent Trends and Developments

1. Investments wrapped in the PCPIR Policy are aimed at bridging infrastructure and scale gaps; over $87 billion invested
since 2015, with more in the pipeline.
2. Digital transformation: Growing adoption of IoT, automation, and AI for process optimization, efficiency, and sustainability.
3. Sustainability movements: Companies increasingly integrating renewable energy, carbon capture, and recycling into opera-
tions as required by new policy frameworks.

Outlook and Opportunities

1. Huge growth potential: With expected CAGRs of 6–7% through 2030 and robust government support, India is set to emerge
as the world’s third-largest petrochemical market.
2. Export capacity: Strategic policy support for exports, especially to Asia and Africa, can create new economic opportunities.
3. Specialty and green chemicals: Niche product development and investments in green chemistry, bioplastics, and circular
economy practices can help India leapfrog in global value chains.

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Services Sector
Previous year Questions
[2015] The states of Jammu and Kashmir, Himachal Pradesh and Uttarakhand reaching the limits of their ecological carrying capacity
due to tourism. Critically evaluate.

Tourism Industry
Overview and Economic Significance
• Tourism is a key driver of India’s economic growth, contributing an estimated ₹22 lakh crore (US$256 billion) to GDP in
2025, which is about 6.6% of national output.
• The sector is a major source of employment, supporting over 48 million jobs—more than 9% of India’s total workforce—
with projections to reach nearly 64 million by 2035.
• Foreign Exchange Earnings (FEEs): In 2024, FEEs from tourism reached ₹2,77,842 crore (provisional), with a 19.8% growth
over the previous year.

Government Initiatives and Policy Support

1. Budget 2025-26 allocated ₹2,541 crore to tourism, with a focus on infrastructure, skill development, and travel facilitation.
2. Swadesh Darshan 2.0: Revamped to develop 50 major tourist destinations with eco-friendly and theme-based circuits (e.g.,
Buddhist, Himalayan, Desert, Tribal, Coastal).

3. PRASHAD Scheme: Ongoing investment in spiritual and heritage tourism, especially at pilgrimage sites and cities of cultural
importance.
4. Medical Tourism: The “Heal in India” initiative leverages India’s medical expertise and wellness traditions to attract interna-
tional patients.
5. Skill Development and Homestays: Special training for hospitality, MUDRA loans for homestay owners, and incentives for
local tourism businesses.
6. Connectivity: Expansion of the UDAN scheme to improve air connectivity to remote and hilly destinations, making travel
more accessible.
7. Visa Reforms: Streamlined e-visa systems and visa fee waivers for select groups to boost international arrivals.

Sectoral Strengths and Opportunities

1. Diverse Offerings: India’s tourism portfolio includes heritage, spiritual, adventure, eco, medical, wellness, rural, and MICE
(Meetings, Incentives, Conferences, Exhibitions) tourism.
2. Rising Middle Class: Increased disposable incomes and changing travel patterns (shorter, more frequent trips) are fueling
domestic travel growth.
3. Digitalization: Enhanced digital tourism tools, online booking platforms, and smart tourist facilities are improving visitor
experience.
4. Niche Tourism: Focus on adventure, rural, eco, and cruise tourism to attract specific interest groups and reduce seasonality.

Challenges in India’s Tourism Sector

1. Infrastructure Gaps and Last-Mile Connectivity
− While major tourist hubs like Delhi, Agra, and Jaipur are well-connected, many potential destinations lack seamless
access through roads, railways, or regional airports.
− Example: Sites in Northeast India and tribal heartlands remain underexplored due to poor connectivity and lack of
logistics support.
− Tourism-specific infrastructure like interpretation centres, eco-lodges, and visitor amenities are uneven across
states.
2. Sustainability and Environmental Degradation
− Over-tourism has led to ecological strain in destinations such as Shimla, Manali, and Goa — resulting in water scar-
city, traffic congestion, and waste mismanagement.
− Example: The Kedarnath flood (2013) and Joshimath land subsidence (2023) underscore the impact of unregulated
tourism on fragile ecosystems.
− Lack of carrying capacity frameworks and eco-tourism norms in many states aggravate the problem.
3. Skill an Human Resource Deficit
− There is a shortage of trained professionals in tourism operations, hospitality, and foreign language services, espe-
cially in emerging tourism zones.
− Seasonal employment trends also discourage long-term skilling and quality service delivery.
− Example: The Skill India Mission and Hunar Se Rozgar Tak are yet to bridge the gap at scale.

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4. Global Competition and Brand Positioning

− India competes with better-packaged and subsidized Asian destinations like Thailand, Vietnam, and Sri Lanka,
which offer competitive pricing and smoother visa processes.
− Inconsistent marketing, limited adoption of digital platforms, and low ease of travel deter international visitors.
5. Safety, Hygiene, and Traveller Confidence
− Post-pandemic expectations of hygiene, contactless services, and medical safety are often unmet in budget and
rural tourism circuits.
− Women travelers and solo tourists still express safety concerns due to sporadic incidents and lack of dedicated
grievance redressal systems.
− Example: Despite guidelines under Swachh Bharat and Dekho Apna Desh campaigns, many tourist sites still lack
adequate sanitation infrastructure.
6. Fragmented Tourism Governance
− Tourism is a State subject under the Constitution, leading to policy fragmentation and uneven development.
− Lack of coordination between the Ministry of Tourism, ASI, Forest Departments, and local bodies results in bureau-
cratic delays and inefficient site management.
7. Underutilized Niche Segments
− High-potential areas such as wellness tourism, adventure sports, rural homestays, and cruise tourism remain under-
developed due to limited investment and lack of ecosystem support.
− Example: Despite India being the birthplace of yoga, it lags behind Bali and Thailand in promoting wellness tourism
infrastructure globally.

Recent Trends and Developments

• Record-breaking growth: Both domestic and international tourism have surpassed pre-pandemic levels, with 2024 de-
scribed as a “truly incredible year” for the sector.
• Tour operator revenue: Expected to grow by 15–17% in FY2025, driven by increased travel propensity and improved infra-
structure.
• Focus on Offbeat Destinations: Promotion of lesser-known sites to decongest popular spots and spread economic benefits.

Way Forward for India’s Tourism Sector

1. Sustainable and Responsible Tourism
− Promote eco-tourism models that balance footfall with carrying capacity assessments—especially in Himalayan,
coastal, and forested areas.
− Example: Adopt best practices from Bhutan’s “High Value, Low Impact” tourism model and implement green certifi-
cation for hospitality units.
− Encourage community-based tourism to ensure locals benefit while preserving cultural heritage.
2. Infrastructure and Connectivity Investments
− Prioritize last-mile connectivity through roads, heliports, and regional airstrips under schemes like UDAN 5.0.
− Develop tourism circuits (e.g., Buddhist Circuit, Ramayana Circuit) with uniform amenities, signage, and rest areas.
− Invest in digital infrastructure for app-based navigation, crowd management, ticketing, and grievance redressal.
3. Policy Reforms and PPP Enablement
− Rationalize permissions under the National Integrated Tourism Policy and enable Single Window Clearance for
tourism businesses.
− Foster Public-Private Partnerships (PPPs) for hotel development, heritage site management (Adopt a Heritage), and
adventure tourism.
− Strengthen convergence between Ministries of Tourism, Civil Aviation, Culture, and Road Transport.
4. Branding, Marketing, and Soft Power Diplomacy
− Leverage India’s civilizational assets—Ayurveda, Yoga, Buddhism, and Festivals—for cultural tourism branding.
− Use campaigns like Incredible India 2.0 and Dekho Apna Desh to expand both domestic and global tourist bases.
− Promote film tourism (e.g., Kashmir and Northeast) and destination weddings as niche growth areas.
5. Inclusive and Localized Growth
− Empower women, tribal artisans, and youth through skilling programs in hospitality, handicrafts, and guide services.
− Support rural homestays, SHG-led tourism services, and local entrepreneurship through Mudra, SVANidhi, and PM
Vishwakarma schemes.
− Example: Meghalaya’s Living Root Bridges and Nagaland’s Hornbill Festival showcase tourism as a tool for eth-
no-cultural revival and income generation.

IT Sector in India
Overview and Economic Significance
1. India’s IT industry has reached a total revenue of $283 billion in 2024-25, up from $118 billion in 2014-15.
2. The sector accounts for 7.3% of India’s GDP and is expected to approach 10% by FY25.
3. Exports are the mainstay, projected at $224 billion in 2024-25, representing 18% of global IT outsourcing spending.
4. The industry employs 5.8 million people, with over 150,000 freshers expected to be hired in FY25.

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Key Data and Growth Trends

1. IT spending in India is forecast to rise by 11.2% to $160 billion in 2025, with software and IT services leading growth.
2. Job opportunities are anticipated to grow by 15–20%, especially in emerging technologies.

Key Trends and Sectoral Drivers

1. Artificial Intelligence (AI) and Machine Learning (ML): 75% of Indian enterprises are expected to integrate AI by 2025;
government funding for the India AI Mission and new AI Centres of Excellence are accelerating adoption.
2. Cloud Computing: 62% of Indian companies plan to implement hybrid cloud strategies, driving demand for data centers and
cloud services.
3. 5G and IoT: The rollout of 5G is enabling new applications in smart cities, manufacturing, and logistics, with the 5G market
expected to contribute $17 billion to the economy by 2025.
4. Cybersecurity: Investments are rising as digital transformation and cyber threats increase.
5. SaaS and Product Innovation: Growth in SaaS startups and product-first companies is diversifying the industry beyond
traditional IT services.

Government Initiatives and Policy Support

1. Digital India: Massive digital infrastructure rollout, including BharatNet to bridge the rural-urban digital divide.
2. India AI Mission: Enhanced funding and policy focus on AI research, talent, and applications69.
3. Deep Tech Fund: Dedicated fund for deep-tech startups, with a focus on AI, semiconductors, and clean tech.
4. Skill Development: Programs like FutureSkills PRIME, NIELIT training centers, and support for startups through TIDE 2.0 and
SAMRIDH.
5. Ease of Doing Business: 100% FDI permitted in IT, 67 Software Technology Parks of India (STPI), and a national framework
for Global Capability Centres in tier-2 cities.

Strengths and Opportunities

1. Global Leadership: India remains a top global outsourcing destination, with a balanced mix of MNCs and Indian IT firms each
contributing $112 billion in exports.
2. Startup Ecosystem: Over 30,000 tech startups, with strong growth in SaaS, fintech, healthtech, and deep tech.
3. Talent Pool: Large, skilled workforce, with increasing specialization in AI, data analytics, and cybersecurity.
4. Digital Inclusion: Expanding internet access (76 crore users) and rising digital adoption in rural areas.

Challenges
1. Margin Compression and Workforce Volatility
− Employee costs accounted for 57% of revenues in FY24, driven by high attrition, wage inflation, and expensive later-
al hiring.
− Example: IT majors like Infosys and Wipro reported elevated employee churn and slower fresher onboarding amid
rising demand for niche digital skills.
2. Intensifying Global Competition
− India faces growing competition from Vietnam, the Philippines, and Eastern Europe in BPO and low-code/no-code
services.
− To sustain its edge, the sector must continuously upskill its workforce in AI, quantum computing, cybersecurity, and
domain expertise.
3. Infrastructure and Capacity Gaps
− Cloud adoption and AI workloads are straining existing data center capacity, especially in Tier-2/3 cities.
− Significant investments are needed in green data centers, edge computing hubs, and uninterrupted power and
cooling infrastructure.
4. Digital Divide and Inclusion Challenges
− Despite widespread mobile usage, rural areas still lag in broadband access, device affordability, and digital
literacy.
− This limits the reach of IT-enabled services (ITES), fintech, and ed-tech models, exacerbating digital inequality.
5. Regulatory Complexity and Cybersecurity Threats
− With the implementation of the Digital Personal Data Protection Act (2023) and global data localization norms,
compliance burdens have increased.
− Cyberattacks on healthcare, banking, and government institutions highlight the need for a national cybersecurity
grid and skilled personnel.

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Recent Developments
1. Hiring Rebound: After a slowdown, IT hiring is set to surge in 2025, with fresher intake projected to surpass 150,000.
2. Export Growth: Exports crossed $224 billion in FY25, with even distribution between MNCs and Indian firms.
3. Tech Investments: Major investments in AI, cloud, and data centers, with government support for semiconductor and clean
tech manufacturing.

The Way Forward

1. Boost Innovation and R&D Ecosystems
− Scale up investments in deep-tech, AI/ML, quantum computing, and cybersecurity to move from a service-led to
a product-led model.
− Example: Initiatives like Digital India Innovation Fund and STPI’s NextGen incubators can help startups scale
globally.
2. Strengthen Talent and Skilling Frameworks
− Bridge the skills gap through reskilling and upskilling programs, focusing on cloud computing, blockchain, and
data engineering.
− Example: NASSCOM FutureSkills Prime, in partnership with MeitY, aims to train over 4 lakh professionals in
emerging tech domains.
3. Accelerate Digital Inclusion
− Expand rural broadband, promote local language content, and improve digital literacy to bring the next billion
online.
− Example: BharatNet and PMGDISHA are critical to connecting India’s heartland to digital services and economic
participation.
4. Promote Sustainable IT Infrastructure
− Develop energy-efficient data centers and adopt green practices across IT campuses and delivery models.
− Example: India’s first solar-powered data center park in Tamil Nadu sets a benchmark for green computing.
5. Enhance Global Competitiveness
− Strengthen public-private partnerships, simplify compliance norms, and enable IT exports in underpenetrated
markets like Africa and Latin America.
− Promote India as a trusted digital partner amid global reorientation of tech supply chains (China+1 strategy).

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