The Hindu Daily Current Affairs – 29 October 2026
Thursday, 29 October 2026
The Hindu – Important News Articles & Editorial
Today’s edition covers Andhra Pradesh’s request for Central aid after Cyclone Arnab, the Cabinet’s new ₹7,396-crore scheme to build panchayat capacity, how gene editing and apomixis could transform rice and wheat, the case for disinvestment as an economic strategy, and whether GRAP can curb Delhi’s winter pollution, along with an editorial analysis on India–New Zealand trade under the new FTA.
Naidu Seeks Central Aid for Cyclone Damage
Very Severe Cyclonic Storm Arnab crossed the Andhra Pradesh and Yanam coasts on Wednesday morning, damaging crops, houses, roads and power infrastructure, mainly along the Godavari delta. Chief Minister N. Chandrababu Naidu has sought continued NDRF support and an early Central team to assess the damage. The episode shows both the success of pre-emptive evacuation and the heavy economic cost that remains.
Key Facts
- More than 28,000 people were evacuated to relief shelters before landfall.
- Preliminary damage: about 180 houses (mostly in Konaseema), over 220 trees uprooted along State roads, nearly 1,000 trees in Visakhapatnam, and power disruption in parts of the affected districts.
- Crops affected: about 70,900 hectares of paddy and other crops plus 10,450 hectares of horticulture – about 81,350 hectares in all.
- Worst-hit districts: Konaseema, Kakinada, East Godavari and West Godavari, with Krishna and Anakapalli also affected.
- The State’s requests: continued NDRF support and early deputation of a Central team once the State submits its detailed assessment.
- Telangana received 10–21 mm of rain in several districts.
- All figures are preliminary and expected to be revised.
How Disaster Relief Is Funded
| Fund / body | Role | Key feature |
|---|---|---|
| State Disaster Response Fund (SDRF) | First line of relief for notified disasters | Centre contributes 75% for general States and 90% for north-eastern and Himalayan States |
| National Disaster Response Fund (NDRF fund) | Additional Central assistance for disasters of severe nature | Released after assessment by an Inter-Ministerial Central Team |
| Inter-Ministerial Central Team (IMCT) | Visits affected areas and verifies the State’s memorandum | Its report goes to the High-Level Committee |
| High-Level Committee (HLC) | Approves additional Central assistance | Chaired by the Union Home Minister |
| PM Fasal Bima Yojana | Crop insurance | Covers localised calamities and post-harvest losses from cyclones and unseasonal rain |
Static Dimensions
- Disaster funding: the Disaster Management Act, 2005 provides for the SDRF and the National Disaster Response Fund. Additional Central assistance follows assessment by an IMCT and approval by the High-Level Committee chaired by the Home Minister.
- Norms: relief follows SDRF/NDRF norms – area-based input subsidy for crop loss (usually where loss is 33% or more) and assistance for damaged houses.
- Crop protection: PM Fasal Bima Yojana covers localised calamities including inundation and cyclones, with post-harvest cover for crops drying in the field.
- Institutions: NDMA, the National Disaster Response Force, IMD (warnings), and the Fifteenth Finance Commission’s design of disaster funds with mitigation and recovery-and-reconstruction windows.
- Cyclone data: IMD classifies a “very severe cyclonic storm” as one with sustained winds of 118–165 kmph.
- Delta ecology: the Godavari delta is a major rice-producing and aquaculture zone, vulnerable to storm surge and salinity.
Analysis
- Preparedness worked: early evacuation of 28,000 people, boat recall and pre-positioned NDRF teams kept loss of life low, in line with Odisha’s “zero casualty” model.
- Economic damage outlasts the storm: crop loss over 81,000 hectares threatens farm incomes in a year already hit by a deficit monsoon and food inflation.
- Assessment process: Central aid depends on State memoranda and IMCT verification, so the speed and accuracy of damage assessment decide when relief arrives.
- Infrastructure fragility: uprooted trees, poles and transformers show the weakness of overhead power networks in coastal towns.
- Fiscal factor: SDRF resources may fall short of the damage, making a timely NDRF top-up important.
Challenges
- Delay between damage and disbursal of relief.
- Crop-loss assessment, coverage of tenant farmers and settlement of insurance claims.
- Restoring power and roads quickly in affected districts.
- Salinity intrusion and damage to delta land; fishers’ loss of boats and nets.
- Recurring cyclones raising reconstruction costs.
Way Forward
- Fast, transparent joint damage assessment using satellite and drone surveys.
- Prompt NDRF assistance and speedy settlement of crop insurance claims.
- Underground cabling and resilient power networks in coastal areas.
- Strengthen coastal shelterbelts, mangroves and embankments.
- Promote climate-resilient crop varieties and cropping calendars in the delta.
- Compensate fishers and help them replace boats and gear.
India Implications
- From saving lives to saving livelihoods: India’s cyclone response now protects lives well, but crop, housing and infrastructure losses still need faster compensation and risk transfer.
- Fiscal federalism: the gap between assessed damage and SDRF balances makes the speed of Central top-ups a recurring Centre–State issue.
- Food prices: losses in the Godavari delta’s rice belt add to pressure on food inflation in a deficit-monsoon year.
As a Himalayan State, Himachal Pradesh receives 90% Central funding for its SDRF, against 75% for most States. After the 2023 and 2025 monsoon disasters, the State likewise had to submit memoranda and wait for Inter-Ministerial Central Team visits before additional Central assistance was released. Apple and other horticultural losses are often assessed late, after orchards are reached. Faster joint assessment using drones and satellite data would speed relief for hill farmers as much as for delta farmers.
ConclusionCyclone Arnab shows that early warning and evacuation can save lives, while recovering livelihoods and infrastructure needs timely assessment and funding. Investing in resilient infrastructure and ecosystem-based protection will reduce losses from future storms.
Prelims Practice
Q. With reference to the classification of cyclonic storms by the India Meteorological Department (IMD), consider the following statements:
- A Very Severe Cyclonic Storm has a maximum sustained wind speed of 118–165 kmph.
- The classification of cyclonic storms is based on wind speed.
- A Very Severe Cyclonic Storm is weaker than a Severe Cyclonic Storm.
Which of the statements given above are correct?
- (a)1 only
- (b)1 and 2 only
- (c)2 and 3 only
- (d)1, 2 and 3
Click to reveal answer
Answer: (b)
Statement 3 is incorrect: a Very Severe Cyclonic Storm (118–165 kmph) is stronger than a Severe Cyclonic Storm (89–117 kmph).
Q. Discuss the institutional framework for disaster management in India, highlighting the roles of the NDMA, NDRF and IMD during cyclones.
(10 Marks, 150 Words)
Union Cabinet Gives Nod to ₹7,396-Crore Panchayat Scheme
The Union Cabinet has approved the Pradhan Mantri Viksit Gram Swaraj Yojana (PM-VGSY), a ₹7,395.55-crore scheme to strengthen the planning and governance capacity of gram panchayats from 2026-27 to 2030-31. It upgrades the Rashtriya Gram Swaraj Abhiyan (RGSA) and shifts from scheme-wise training to holistic, evidence-based local planning.
Key Facts
- Outlay: ₹7,395.55 crore – Central share ₹4,869.48 crore and State share ₹2,526.07 crore.
- Period: 2026-27 to 2030-31.
- Coverage: about 32 lakh elected representatives, panchayat functionaries and other stakeholders across 2.55 lakh gram panchayats and traditional local bodies.
- No stipend is offered to trainees, though they are described as “beneficiaries”.
- Preparation of 2.55 lakh Gram Panchayat Development Plans (GPDPs) through the eGramSwaraj portal, aligned with Central and State schemes and resources.
- “Digital handholding” for evidence-based planning.
- A common digital platform will integrate data on schemes, beneficiaries, community assets and resources to identify development gaps, improve coordination and monitor implementation.
- Awareness drives, each reaching at least one lakh citizens.
RGSA vs PM-VGSY
| Aspect | Rashtriya Gram Swaraj Abhiyan (2018) | PM-VGSY (2026-27 to 2030-31) |
|---|---|---|
| Focus | Capacity-building, often through scheme-specific training modules | Holistic, evidence-based local planning |
| Planning tool | GPDP under the People’s Plan Campaign | 2.55 lakh GPDPs through eGramSwaraj, aligned with Central and State schemes |
| Data | Separate scheme portals | A common digital platform on schemes, beneficiaries and community assets |
| Outlay | — | ₹7,395.55 crore (Centre about two-thirds, States about one-third) |
Key Committees on Panchayati Raj
| Committee | Year | Key recommendation |
|---|---|---|
| Balwant Rai Mehta | 1957 | Three-tier Panchayati Raj (village, block, district) |
| Ashok Mehta | 1977 | Two-tier system; district as the base of decentralised planning |
| L.M. Singhvi | 1986 | Constitutional status for panchayats |
Static Dimensions
- 73rd Constitutional Amendment (1992): Part IX, Articles 243 to 243-O; the Eleventh Schedule (29 subjects); Article 243G (powers and responsibilities); Article 243-I (State Finance Commission); Article 243ZD (District Planning Committee, under Part IX-A).
- Article 40: Directive Principle on organising village panchayats.
- Ministry of Panchayati Raj: nodal ministry; RGSA (2018) was the earlier capacity-building scheme.
- Related initiatives: People’s Plan Campaign and GPDP (from 2018), eGramSwaraj, SVAMITVA, the Panchayat Advancement Index, and Fifteenth Finance Commission grants to local bodies.
- Concepts: the “3Fs” (funds, functions, functionaries), decentralised planning and subsidiarity.
Analysis
- Capacity as the bottleneck: many panchayats have devolved functions but lack the skills and data to plan, so integrated training addresses a real gap.
- Holistic planning: replacing scheme-specific modules can reduce fragmentation and improve convergence of schemes.
- Digital platform: shared data on assets and beneficiaries can improve targeting and monitoring, but depends on connectivity and digital skills.
- Gaps: training alone does not give panchayats funds, functions or functionaries, and unpaid trainees – many of them women representatives – may bear participation costs.
- Federal angle: with States bearing about a third of the cost, outcomes depend on their fiscal and administrative commitment.
Challenges
- Weak devolution of the 3Fs by States.
- Digital divide and poor connectivity in remote villages.
- Proxy representation (“sarpanch-pati”) and the capacity of women representatives.
- Dependence on tied grants, limiting local autonomy.
- Quality of training and follow-up.
Way Forward
- Pair capacity-building with real devolution of funds, functions and functionaries.
- Use local-language, hands-on and peer-learning training, with support for women and SC/ST representatives.
- Ensure last-mile connectivity and data quality for the digital platform.
- Strengthen State Finance Commissions and panchayats’ own-source revenue.
- Monitor outcomes through the Panchayat Advancement Index.
India Implications
- Viksit Bharat from below: village-level plans linked to scheme data can make national programmes more responsive to local needs.
- Women’s leadership: with many States reserving 50% of panchayat seats for women, training can help end proxy representation.
- Cooperative federalism: success depends on States devolving real powers alongside Central capacity-building.
Himachal Pradesh has over 3,500 gram panchayats under the HP Panchayati Raj Act, 1994, many in remote areas of Lahaul-Spiti, Kinnaur, Pangi and Dodra-Kwar with weak mobile and internet connectivity. As a Himalayan State, HP generally gets a higher Central share in centrally sponsored schemes. The State already reserves 50% of panchayat seats for women. Hands-on training in GPDP preparation and offline-capable digital tools would matter most for these high-altitude panchayats.
ConclusionPM-VGSY addresses the capacity side of local self-government. Its impact will depend on whether panchayats also get genuine powers, resources and digital access to turn plans into results.
Prelims Practice
Q. In the context of Panchayati Raj, the term “3Fs” refers to:
- (a)Federalism, Finance and Functioning
- (b)Funds, Functions and Functionaries
- (c)Fiscal policy, Federalism and Finance
- (d)Functions, Facilities and Frameworks
Click to reveal answer
Answer: (b)
Effective local self-government needs States to devolve all three – funds, functions and functionaries – to panchayats; devolution of the 29 Eleventh Schedule subjects is left to State legislatures under Article 243G.
Q. Discuss the objectives of the Pradhan Mantri Viksit Gram Swaraj Yojana (PM-VGSY). How can integrated capacity-building improve the functioning of gram panchayats?
(10 Marks, 150 Words)
New Genetic Tools Are Breathing Fresh Life into India’s Staple Crops
The author argues that new genetic tools – from CRISPR gene editing to apomixis – can reshape rice and wheat, which cover over half of India’s farmland and supply most of its calories. In 2025 India became the first country to release gene-edited rice varieties. India can lead, the author says, if it restores the appeal of fundamental plant science and prepares its seed system for new technologies and growing private investment.
Key Facts
- Rice and wheat occupy over half of India’s farmland and provide most calories. Today’s varieties were bred when fertiliser, pesticide, water and power were less constrained; climate stress and sustainability now set a higher bar.
- Seed system: National Seeds Corporation (1963), State seed corporations and agricultural universities, with ICAR supplying breeder seed that is multiplied into foundation and certified seed. Private firms hold only about 5% of the wheat seed market (growing about 8% a year), but dominate hybrid rice, maize and cotton.
- Two gene-edited rice varieties (2025):
- DRR Dhan 100 (Kamala): matures in about 130 days instead of 150, with about 20% higher yield (about 5.4 t/ha) and lower water and labour use. The edit partly reduces a cytokinin-degrading enzyme, raising grain number.
- Pusa DST Rice 1: an edited OsDST gene gives salt and alkaline tolerance, with 10–30% higher yield in such soils (65% survival under salt stress versus 20% in unedited plants).
- No residues of the editing tools were found; the outcomes are equivalent to conventional mutagenesis, only faster and more precise.
- Both were developed by public institutions, so seeds are not locked into restrictive patents or licences.
- Apomixis: an engineered bypass of sexual reproduction, so hybrid vigour is retained across generations. First shown in rice by Venkatesan Sundaresan and Imtiyaz Khanday (UC Davis) in 2018–19, with success rates now near 90%. It would let small farmers save and replant high-yielding hybrid seed, and needs no foreign genes – but field trials and seed-production systems are still needed.
- Wheat: no gene-edited wheat has been released in India. The government recently released 184 new varieties across 25 crops, including climate-resilient wheat. Hybrid wheat is difficult because of wheat’s floral biology, though Mahyco and Nuziveedu are working on it. HB4 drought-tolerant wheat (Bioceres, with a sunflower gene) is a transgenic trait grown in Argentina and approved in the US (2024); CRISPR wheat trials are under way internationally.
- Author’s call: invest in fundamental research (genetics, physiology, development, host–pathogen interactions) and draw students back to plant science.
India’s First Genome-Edited Rice Varieties (2025)
| Feature | DRR Dhan 100 (Kamala) | Pusa DST Rice 1 |
|---|---|---|
| Developed by | ICAR-Indian Institute of Rice Research, Hyderabad | ICAR-Indian Agricultural Research Institute, New Delhi |
| Trait | Higher grain number and earlier maturity | Salt and alkaline tolerance |
| Gain | About 20% higher yield (about 5.4 t/ha); matures in about 130 days instead of 150 | 10–30% higher yield in saline and alkaline soils |
| Gene targeted | Gene for a cytokinin-degrading enzyme | OsDST (drought and salt tolerance) gene |
| Foreign DNA | None (SDN-1 type edit) | None (SDN-1 type edit) |
Ways to Improve Crops
| Method | How it works | Regulation in India |
|---|---|---|
| Conventional breeding / mutagenesis | Crossing or random mutations, then selection over many years | Normal variety release process |
| Genome editing (SDN-1, SDN-2) | Targeted change in the plant’s own genes, no foreign DNA | Exempt from GM rules since 2022, after biosafety checks |
| Transgenic (GM) | Gene from another species inserted (e.g. HB4 wheat with a sunflower gene) | GEAC approval under the Environment (Protection) Act rules, 1989 |
| Synthetic apomixis | Seed forms without fertilisation, so a hybrid breeds true | Path still to be defined; field trials needed |
Static Dimensions
- Genome editing vs GM: SDN-1 and SDN-2 edits without foreign DNA were exempted from GM rules in 2022. Transgenic crops need GEAC approval under the 1989 Rules of the Environment (Protection) Act, 1986.
- Seed law and rights: Seeds Act, 1966; PPVFR Act, 2001; Patents Act, 1970 (Section 3(j)); and the proposed new Seeds Bill.
- Institutions: ICAR, ICAR-IARI (Pusa), ICAR-IIRR (Hyderabad), DBT, GEAC and the National Seeds Corporation.
- Concepts: hybrid vigour (heterosis); breeder, foundation and certified seed; apomixis; mutagenesis; and stress-tolerant varieties.
Analysis
- Speed and precision: gene editing recreates in months what breeding takes years to achieve, using known natural variants.
- Public-sector advantage: public development keeps technology and seed accessible to small farmers and avoids patent bottlenecks, easing seed-sovereignty concerns.
- Regulatory distinction: edits without foreign DNA are treated like conventional breeding, easing acceptance – unlike transgenics such as HB4.
- Apomixis and farm economics: saving high-yield hybrid seed could cut input costs but disrupt hybrid seed businesses, so policy on seed supply and pricing must adapt.
- Private entry: rising private investment could bring capital and speed but may concentrate seed control unless public systems stay strong.
- Research pipeline: the author links applied success to decades of basic research, and warns that anti-GMO sentiment has driven talent away from plant science.
Challenges
- Gap between laboratory results and field-scale, multi-location performance.
- Regulatory uncertainty for new techniques such as apomixis.
- Public acceptance and misinformation about gene editing.
- Limited talent and funding in plant science.
- The complexity of wheat genetics.
- Adapting seed multiplication and certification to new tools.
Way Forward
- Keep gene-edited public varieties open and affordable through the national seed system.
- Issue clear, science-based guidelines for genome-edited crops and apomictic lines, with biosafety checks.
- Scale up multi-location trials and seed-production capacity.
- Fund fundamental plant science and fellowships, and engage students.
- Build safeguards so that private entry serves farmers (fair pricing, farmers’ rights).
- Extend editing to wheat and climate-resilient traits, and collaborate internationally.
India Implications
- Climate-resilient food security: faster breeding for heat, salt and drought tolerance protects rice and wheat output as climate stress grows.
- Resource savings: shorter-duration rice cuts water and power use, easing pressure on groundwater in rice–wheat belts.
- Seed sovereignty: a strong public system keeps new technology affordable for small and marginal farmers.
Himachal farmers spend heavily on hybrid vegetable seed – tomato in Solan, capsicum, cauliflower and cabbage across the mid-hills – and must buy fresh seed every season. If apomixis reaches vegetables, they could save and replant hybrid seed. The State is also a major producer of quality seed in its cool, disease-free valleys, such as seed potato and pea in Lahaul. CSK HPKV Palampur and Dr Y.S. Parmar University at Nauni could use gene editing for cold-tolerant, disease-resistant hill varieties of rainfed wheat and rice.
ConclusionGene editing and apomixis offer faster, cheaper and more sustainable improvement of staple crops. India’s strong public breeding system is an advantage – and keeping it strong, with sustained basic research and clear regulation, will decide whether farmers benefit.
Prelims Practice
Q. Consider the following pairs:
- DRR Dhan 100 (Kamala) : Genome-edited rice with higher yield and earlier maturity
- Pusa DST Rice 1 : Genome-edited rice tolerant to salinity and alkalinity
- HB4 wheat : Genome-edited wheat containing no foreign DNA
Which of the pairs given above are correctly matched?
- (a)1 and 2 only
- (b)2 and 3 only
- (c)1 and 3 only
- (d)1, 2 and 3
Click to reveal answer
Answer: (a)
Pair 3 is incorrect: HB4 drought-tolerant wheat, developed by Argentina’s Bioceres, is a transgenic (GM) crop carrying a sunflower gene – not a genome-edited variety.
Q. What is apomixis? Examine its potential to preserve hybrid vigour across generations and reduce seed costs for small and marginal farmers.
(10 Marks, 150 Words)
Disinvestment as a Key Economic Strategy
The author, Director General of the Confederation of Indian Industry (CII), argues that disinvestment and asset monetisation have helped the Centre navigate a difficult 2026-27, marked by global uncertainty, high energy prices and a deficient monsoon. The 14 October approval of the government’s IDBI Bank stake sale makes it likely that the budget target will be exceeded. He frames disinvestment as a policy choice to unlock value and improve governance, not merely a way to meet fiscal targets.
Key Facts
- DIPAM data: ₹62,124 crore mobilised in April–September 2026 through disinvestment and asset monetisation, of which ₹55,757 crore came from disinvestment – 78% of the ₹80,000 crore full-year target. IDBI proceeds will take it past the target.
- Fiscal position (April–August 2026): net tax revenue up only 3.4% and non-tax revenue up 3.2%, capital expenditure up over 18%, and the fiscal deficit already at 42% of the budgeted level.
- Most receipts so far came through Offer for Sale (OFS), which broadens ownership without changing operations. IDBI Bank is the first major strategic sale since Air India (2022) and one of the largest FDI deals in India’s financial sector.
- The author calls it a first step towards a “Privatisation 2.0” framework – investor-led, professionally managed and time-bound.
- The New Public Sector Enterprise Policy (2021) envisages a bare-minimum presence of PSEs in strategic sectors. NMP 2.0 targets ₹16.72 lakh crore for FY26–FY30, after about 90% achievement in Phase 1.
- CII proposals:
- Demand-based selection: gauge investor interest first and prioritise PSEs that draw strong bids.
- A rolling three-year privatisation pipeline for due diligence and price discovery.
- Calibrated disinvestment as an interim step: cutting the government stake to 51% in 95 listed PSEs could fetch about ₹9 lakh crore, starting with PSEs where government holding is 75% or less.
- A dedicated body with a ministerial board, industry advisers and a professional management team.
- The LIC IPO (2022) is cited as a success in drawing first-time retail investors.
Routes of Disinvestment
| Route | What happens | Control | Example |
|---|---|---|---|
| IPO / FPO | Shares sold to the public through the stock market | Stays with government | LIC IPO (2022) |
| Offer for Sale (OFS) | Government sells part of its stake through the exchange | Stays with government | Most 2026-27 receipts |
| Strategic sale | Large stake sold with management control to a buyer | Passes to buyer | Air India (2022); IDBI Bank (approved 2026) |
| Asset monetisation | Brownfield assets leased for upfront or periodic payments | Ownership stays with government | National Monetisation Pipeline |
Static Dimensions
- Disinvestment: sale of government equity in PSEs. Forms include minority stake sales (OFS, IPO, FPO), strategic sale (with management control) and privatisation.
- DIPAM: Department of Investment and Public Asset Management under the Ministry of Finance, which manages disinvestment. It began as the Department of Disinvestment (1999), was a separate Ministry in 2001–04, and was renamed DIPAM in 2016.
- Policy history: 1991 reforms; Disinvestment Commission (1996); Air India sold to the Tata group (2022); and the 2021 PSE Policy with its list of strategic sectors.
- Fiscal link: disinvestment proceeds are a non-debt capital receipt that reduces borrowing needs – but a one-time source, not recurring revenue.
- NMP: the National Monetisation Pipeline (2021) leases brownfield assets (roads, railways, power, etc.) while retaining ownership.
- Related: IDBI Bank (majority-owned by LIC and reclassified by the RBI as a private sector bank for regulatory purposes), the FRBM glide path, and Article 298 (executive power to carry on trade).
Analysis
- Fiscal cushion: weak tax growth and high capex make non-debt receipts valuable for staying on the consolidation path.
- Beyond revenue: market discipline, professional management and wider ownership can raise PSE efficiency.
- Strategic sale versus OFS: OFS raises cash without governance change, while strategic sales bring management and capital – the real reform.
- Demand-led design: testing investor appetite first can improve valuations and reduce failed auctions.
- Interim route: cutting stakes to 51% keeps control while raising funds and exposing PSEs to market scrutiny.
- Caution: disinvestment is one-off, and the author himself stresses fiscal prudence. The piece reflects an industry-body view; employee interests, strategic concerns and selling at the right price get little attention.
Challenges
- Market volatility and weak valuations.
- Employee and political resistance, and legal or regulatory hurdles.
- A history of missed disinvestment targets.
- Risk of selling assets to plug deficits rather than to improve efficiency.
- Governance of strategic PSEs and protection of the public interest.
Way Forward
- Adopt a rolling, transparent privatisation pipeline with investor feedback.
- Prioritise strategic sales in non-strategic sectors, using calibrated stake sales as an interim measure.
- Create a dedicated, professional institution to run the process.
- Protect employee interests and ensure transparent valuation.
- Combine disinvestment with tax and expenditure reform for lasting consolidation.
India Implications
- Fiscal space: non-debt receipts help protect capital expenditure without raising borrowing in a year of weak revenue growth.
- Capital markets: stake sales deepen markets and widen retail participation, as the LIC IPO showed.
- Efficiency: privatisation in non-strategic sectors can free public resources for health, education and infrastructure.
Himachal Pradesh is itself a shareholder in a listed central PSU – it holds about 27% of SJVN Ltd, alongside the Centre’s majority stake – so any OFS in SJVN affects the State’s asset value and dividends. The State also runs loss-making undertakings such as HRTC and the State Electricity Board, where the article’s ideas – professional management, a clear pipeline and calibrated reform rather than one-off sales – are relevant to its own fiscal stress.
ConclusionDisinvestment can cushion the budget and improve efficiency, but it is a supplement to – not a substitute for – sustained fiscal prudence. A transparent, demand-led and time-bound programme is most likely to deliver both value and reform.
Prelims Practice
Q. The Department of Investment and Public Asset Management (DIPAM) is primarily associated with:
- (a)Regulation of monetary policy and inflation
- (b)Management of government investments in public sector enterprises and disinvestment
- (c)Administration of direct and indirect taxes
- (d)Regulation of foreign exchange markets
Click to reveal answer
Answer: (b)
DIPAM works under the Ministry of Finance and manages disinvestment, strategic sales and the government’s equity in CPSEs. Monetary policy (a) is the RBI’s domain, and taxes (c) fall under the Department of Revenue.
Q. What is disinvestment? Explain how it can contribute to resource mobilisation, wider public ownership and improved efficiency in public sector enterprises.
(10 Marks, 150 Words)
Is GRAP Enough to Curb Pollution?
As Delhi’s air quality slipped into the “poor” category, the Commission for Air Quality Management (CAQM) invoked Stage I of the Graded Response Action Plan (GRAP) in Delhi-NCR. A CREA analysis (22 October 2026) finds no consistent improvement in Delhi’s winter air quality over four years despite GRAP. The question is whether emergency, short-term curbs can substitute for long-term pollution control.
Key Facts
- GRAP is a set of graded emergency measures announced by CAQM according to recorded or forecast pollution levels.
- Stage I mostly directs strict enforcement of existing norms, such as barring regular use of diesel generator sets.
- Stage III: ban on construction and demolition in Delhi-NCR, and on BS-III petrol and BS-IV or older diesel light motor vehicles in Delhi and high-vehicle-density NCR districts (Gurugram, Faridabad, Sonipat, Ghaziabad, Gautam Buddh Nagar).
- Stage IV: a stricter construction ban with fewer exemptions, and a bar on trucks entering Delhi except BS-VI, electric, CNG and LNG vehicles.
- CAQM directions bind the governments of Delhi, Haryana, Uttar Pradesh and Rajasthan (NCR areas), with legal action possible against defaulting officers; restrictions take effect when States issue orders.
- New this winter (Delhi government notification, 23 June):
- 1 November–31 January: ban on non-Delhi-registered vehicles below BS-VI (electric, CNG, emergency and official-duty vehicles exempt).
- 1 November–28 February: doubled parking charges (DMRC sites excluded).
- GRAP takes precedence in case of conflict.
- Causes of winter spikes: low wind speed and falling temperatures (inversion), stubble burning (October–November), firecrackers, vehicles and dust.
GRAP Stages (Delhi AQI)
| Stage | AQI category | AQI range | Typical measures |
|---|---|---|---|
| Stage I | Poor | 201–300 | Strict enforcement of existing norms; curbs on diesel generator use |
| Stage II | Very Poor | 301–400 | Tighter dust and generator controls; higher parking fees; more public transport |
| Stage III | Severe | 401–450 | Construction and demolition ban; curbs on BS-III petrol and BS-IV diesel LMVs |
| Stage IV | Severe+ | Above 450 | Stricter construction ban; truck entry limited to BS-VI, electric, CNG and LNG vehicles |
Delhi’s Winter AQI: Four Years of GRAP (CREA)
| Winter | Mean AQI | Median AQI |
|---|---|---|
| 2022-23 | 280 | 294 |
| 2023-24 | 304 | 324 |
| 2024-25 | 285 | 289 |
| 2025-26 | 295 | 305 |
Static Dimensions
- GRAP history: notified by MoEFCC in January 2017 on the Supreme Court’s direction (M.C. Mehta case); enforced until 2020 by the Environment Pollution (Prevention and Control) Authority (EPCA, constituted in 1998 under the Environment (Protection) Act), which was replaced by CAQM.
- CAQM: statutory body under the Commission for Air Quality Management in National Capital Region and Adjoining Areas Act, 2021.
- Legal framework: Air (Prevention and Control of Pollution) Act, 1981; Environment (Protection) Act, 1986; Article 21 (right to a clean environment); Articles 48A and 51A(g); the polluter-pays and precautionary principles.
- Programmes: National Clean Air Programme (NCAP, 2019; target of up to 40% reduction in particulate matter by 2025-26), the National Air Quality Index (2015), BS-VI norms (2020), and the Agriculture Ministry’s Crop Residue Management scheme.
- Stubble burning: Punjab, Haryana and western UP; alternatives include the Happy Seeder, in-situ and ex-situ management, and the PUSA bio-decomposer.
- Concepts: PM2.5 and PM10, temperature inversion, the airshed approach, and short-term versus structural measures.
Analysis
- Reactive design: GRAP is triggered after pollution worsens, so it manages peaks but does not reduce baseline emissions.
- Weak evidence of impact: a flat AQI trend over four winters suggests that weather and structural sources dominate outcomes.
- Enforcement dependency: measures work only when States implement and monitor them, and Stage I largely repeats existing norms.
- Shift towards preventive rules: Delhi’s fixed seasonal restrictions move towards measures that do not wait for a trigger, though their implementation is untested.
- Regional problem: Delhi’s airshed spans several States, so coordination is essential and CAQM’s statutory powers help.
- Equity: vehicle and construction bans hit livelihoods, so support measures – public transport and compensation for workers – matter.
Challenges
- Weak enforcement and fragmented State action.
- Stubble burning and industrial and vehicular emissions.
- Poor public transport and dependence on private vehicles.
- Limited real-time monitoring and source apportionment.
- Livelihood impact of construction and transport curbs.
Way Forward
- Shift from emergency response to year-round structural measures: clean transport, industrial fuel switching, dust control and waste management.
- Strengthen airshed-wide coordination and CAQM enforcement.
- Expand incentives and machinery for crop-residue management, with alternative uses of straw.
- Improve public transport and EV adoption, and use parking and congestion pricing.
- Use better monitoring, source apportionment and transparent reporting of outcomes.
- Provide safety nets for workers during construction bans.
India Implications
- Public health: long winter exposure to PM2.5 raises respiratory and cardiovascular disease and reduces life expectancy across the Indo-Gangetic plain.
- Model for other cities: Delhi’s experience shows that emergency plans must be backed by year-round, airshed-level action under NCAP.
- Federal coordination: CAQM shows how a statutory inter-State body can tackle pollution that crosses State borders.
Seven Himachal towns – Baddi, Damtal, Kala Amb, Nalagarh, Paonta Sahib, Parwanoo and Sundernagar – are non-attainment cities under NCAP. Industrial towns in narrow valleys such as Baddi often record “poor” air in winter, when temperature inversion traps emissions from factories, trucks and diesel generators. The GRAP lesson applies here too: emergency curbs cannot replace year-round controls on industrial fuel, road dust and traffic in the Baddi–Barotiwala–Nalagarh belt.
ConclusionGRAP is a useful emergency tool, but it cannot replace long-term, year-round and regionally coordinated action. Durable improvement needs structural cuts in emissions, backed by enforcement and public support.
Prelims Practice
Q. Temperature inversion can aggravate winter air pollution because it:
- (a)Increases vertical mixing and disperses pollutants rapidly
- (b)Prevents the accumulation of pollutants by increasing wind speed
- (c)Limits vertical air movement and traps pollutants near the ground
- (d)Converts all particulate matter into harmless gases
Click to reveal answer
Answer: (c)
In an inversion, a layer of warmer air sits above cooler air near the ground, acting like a lid that stops pollutants from rising and dispersing – common on calm winter nights in north India and in hill valleys.
Q. What is the Graded Response Action Plan (GRAP)? Explain its different stages and examine its role in managing severe air pollution episodes in Delhi-NCR.
(10 Marks, 150 Words)
India–New Zealand Trade Ties Set to Scale New Heights
The author, President of the Federation of Indian Chambers of Commerce and Industry (FICCI), argues that the entry into force of the India–New Zealand Free Trade Agreement is a chance to lift a trade relationship that is far below potential – bilateral merchandise trade is only about $1.2 billion. The FTA is among India’s recent modern trade agreements and strengthens its economic footprint in the Indo-Pacific. Gains will come, the author says, only if Indian businesses actually use the agreement.
Key Facts
- Bilateral merchandise trade: about $1.2 billion. India supplies just 1.9% of New Zealand’s $47.5 billion merchandise imports, while China supplies over 22% and Australia, the US, South Korea and Japan together about 33%.
- Most rival suppliers (except the US) already enjoy preferential access through their own trade agreements, putting Indian exporters at a disadvantage. The FTA gives Indian goods duty-free access across all tariff lines offered.
- Sectoral opportunities:
- Apparel: New Zealand imported about $1.2 billion in 2025, with India’s share around 4%; average tariffs of nearly 10% are removed. Similar scope exists in leather, footwear, home textiles and carpets.
- Machinery (about $7 billion of imports) and vehicles and auto components ($5.2 billion): India’s share is about 1% or less.
- Pharmaceuticals: India already had zero-duty access and about a 5.5% share; the FTA allows reliance on recognised regulators’ evaluation and inspection reports, cutting duplicate compliance.
- Services: New Zealand imported $24.2 billion of services in 2024, with India’s share under 3%. Commitments cover 118 service sectors (IT, professional services, healthcare, education, finance).
- Mobility: a quota of 5,000 skilled-professional visas at any time, with stays of up to three years, plus better student mobility and post-study work options.
- Investment: New Zealand will facilitate $20 billion of FDI into India over 15 years.
- Target: doubling bilateral trade by 2030.
- Requirements for success: market intelligence, distribution networks, regulatory preparedness, commercial partnerships and sustained engagement with New Zealand investors.
Where Indian Exporters Can Gain
| Sector | NZ imports | India’s share | What the FTA changes |
|---|---|---|---|
| Apparel | About $1.2 billion (2025) | About 4% | Removes average tariffs of nearly 10% |
| Machinery | About $7 billion | About 1% or less | Duty-free access; scope for long-term upgrading |
| Vehicles and auto parts | About $5.2 billion | About 1% or less | Duty-free access |
| Pharmaceuticals | — | About 5.5% | Reliance on recognised regulators’ reports cuts duplicate compliance |
| Services | $24.2 billion (2024) | Under 3% | Commitments in 118 sectors; 5,000 skilled-professional visas |
India’s Recent Trade Agreements
| Agreement | Year | Highlight |
|---|---|---|
| India–UAE CEPA | 2022 | First comprehensive deal of the new generation |
| India–Australia ECTA | 2022 | Early-harvest deal; wider CECA under negotiation |
| India–EFTA TEPA | 2024 | $100 billion investment commitment over 15 years |
| India–UK CETA | 2025 | Goods, services and mobility |
| India–New Zealand FTA | 2026 | Duty-free access; $20 billion FDI facilitation; 5,000 professional visas |
Static Dimensions
- FTA concepts: tariff elimination, rules of origin, non-tariff barriers, mutual recognition of regulators, and services and mobility chapters. FTAs are permitted under Article XXIV of GATT and Article V of GATS (WTO).
- India’s recent FTAs: India–UAE CEPA (2022), India–Australia ECTA (2022), India–EFTA TEPA (2024), India–UK CETA (2025), and ongoing India–EU talks.
- Policy links: Foreign Trade Policy 2023, Make in India, PLI, Districts as Export Hubs, and the $2 trillion goods-and-services export ambition by 2030.
- Indo-Pacific context: India stayed out of RCEP (2019), so bilateral FTAs are its route into the region; it is part of the Indo-Pacific Economic Framework (IPEF) and the Quad.
- Institutions: Ministry of Commerce and Industry, DGFT, FICCI and other chambers, and Export Promotion Councils.
- New Zealand: an agriculture- and dairy-based economy, member of the CPTPP, with a large Indian diaspora.
Analysis
- Level playing field: the FTA removes the disadvantage Indian exporters faced against FTA-backed competitors.
- Labour-intensive and higher-value goods: apparel and leather offer quick gains, while machinery and auto parts offer longer-term upgrading.
- Services and mobility: professional visas and education links play to India’s strengths, since New Zealand imports services India supplies competitively.
- Investment pledge: $20 billion is a facilitation commitment, not a guarantee; delivery depends on a pipeline of projects.
- Utilisation risk: FTAs often go underused because MSMEs struggle with rules of origin and documentation, so benefits are not automatic.
- Strategic value: small in trade terms, the FTA supports India’s wider Indo-Pacific and diversification strategy.
- Caution: the article reflects an industry-body view and says little about sensitive sectors such as dairy and agriculture, or about India’s concessions.
Challenges
- A low base, long distance and the small size of New Zealand’s market.
- Low awareness and compliance capacity among exporters.
- Competition from established suppliers.
- Non-tariff barriers, and sanitary and quality standards.
- Turning investment commitments into projects.
Way Forward
- Provide market intelligence, helpdesks and digital certificate-of-origin systems.
- Build distribution networks and commercial partnerships in New Zealand.
- Run sector-wise outreach for apparel, auto, machinery, pharma and services.
- Develop an investor pipeline for the $20 billion commitment.
- Track FTA utilisation data and review performance periodically.
India Implications
- Trade diversification: bilateral FTAs give India preferential access to Indo-Pacific markets despite staying out of RCEP.
- Jobs: duty-free access for apparel, leather and footwear supports labour-intensive manufacturing.
- Services and talent: mobility provisions open opportunities for Indian professionals and students.
New Zealand is one of the world’s most efficient apple and kiwifruit exporters, so the terms on which its apples and kiwis enter India are watched closely by Himachal’s orchardists. Safeguards such as quotas and seasonal windows matter to protect growers. At the same time, New Zealand’s strengths in high-density orchards, rootstocks, post-harvest handling and kiwifruit cultivation – already grown in parts of Solan and Sirmaur – offer HP a chance to upgrade its own horticulture through technical cooperation.
ConclusionThe FTA creates an enabling framework, but results depend on effective use by exporters and investors. With focused outreach and implementation, India can double trade with New Zealand by 2030 and deepen its Indo-Pacific economic ties.
Q. What is a Free Trade Agreement (FTA)? Explain how tariff elimination and rules of origin influence trade flows between participating countries.
(15 Marks, 250 Words)
