1. Sariska Tiger Reserve – Environment
Why in News?
A recent proposal seeks to rationalize the boundary of Sariska Tiger Reserve’s Critical Tiger Habitat (CTH). This adjustment could potentially lead to reopening of more than 50 marble and dolomite mines, previously shut down following a Supreme Court directive due to their close proximity to critical tiger habitats.
Key Highlights:
About Sariska Tiger Reserve
- Location: Alwar district, Rajasthan.
- Established: Initially as a royal hunting reserve of Maharaja of Alwar; became a wildlife reserve in 1955 and declared a national park in 1979. It is a Tiger Reserve under Project Tiger since 1978.
- Geographical significance: Located within the ancient Aravalli mountain ranges, one of the world’s oldest mountain chains.
- Historical importance: Hosts several historical sites, including ancient temples, palaces, and scenic lakes.
Ecological Importance:
Vegetation:
- Dominated by Northern Tropical Dry Deciduous Forests and Northern Tropical Thorn Forests.
- Key plant species include:
- Dhok (Anogeissus pendula), dominant tree species
- Salar, Kadaya, Gol, Ber, Banyan, Gugal, Bamboo, and Kair.
Wildlife:
- Mammals: Tigers (flagship species), Leopards, Sambhar deer, Chital (spotted deer), Nilgai (blue bull), Four-horned antelope (Chausingha), Wild Boars, etc.
- Birds and Reptiles: Diverse birdlife, several reptilian species enhancing biodiversity.
Implications of the Proposal:
- Economic: Revival of marble and dolomite mining industries can boost local economy, generate employment, and enhance state revenue.
- Environmental Concerns: Mining activities could pose threats to tiger habitats, increase human-animal conflicts, disturb the ecosystem, and affect biodiversity adversely.
- Balancing Act: The rationalization aims to achieve a careful balance between economic development and environmental conservation.
Summary
- Sariska Tiger Reserve in Rajasthan is historically significant, ecologically rich, and geographically notable.
- A recent move suggests adjusting boundaries of its Critical Tiger Habitat, potentially reopening previously closed mining operations.
- Ecological balance and sustainability concerns remain critical, necessitating careful environmental assessments and policies.
Exam Connect – Possible Questions
Prelims
1. Sariska Tiger Reserve is located in which Indian state?
A. Madhya Pradesh
B. Rajasthan
C. Gujarat
D. Uttarakhand
Answer: B. Rajasthan
2. Which of the following tree species is dominant in the forests of Sariska Tiger Reserve?
A. Sal (Shorea robusta)
B. Teak (Tectona grandis)
C. Dhok (Anogeissus pendula)
D. Sandalwood (Santalum album)
Answer: C. Dhok (Anogeissus pendula)
3. Sariska Tiger Reserve lies in which mountain range?
A. Himalayas
B. Vindhyas
C. Aravalli
D. Satpura
Answer: C. Aravalli
Mains
1. Discuss the ecological and economic implications of the recent proposal to rationalize boundaries of Sariska Tiger Reserve’s Critical Tiger Habitat. Suggest measures to ensure a balanced approach to conservation and economic development. (15 Marks, 250 words)
2. “The conservation of tiger reserves in India demands not only strict environmental regulations but also sustainable economic alternatives for local communities.” Critically analyze this statement with reference to Sariska Tiger Reserve. (15 Marks, 250 words)
2. Integration of Rare Donor Registry of India with e-Rakt Kosh Platform – Governance
Why in News?
The Indian Council of Medical Research (ICMR) has recently launched the Rare Donor Registry of India (RDRI). Additionally, the Ministry of Health and Family Welfare is planning to integrate the RDRI with the national digital blood bank management platform “e-Rakt Kosh” to significantly improve blood transfusion services nationwide, particularly catering to rare blood groups.
Key Highlights:
Rare Blood Groups:
Rare blood groups are defined by:
- Absence of High-Frequency Antigens (HFAs).
- Unique antigen combinations, making transfusions challenging.
Examples in India:
- Bombay Blood Group (hh)
- p-null
- Rh-null
- Rare antigen profiles such as S-s-U-
Importance of rare blood groups:
- Essential for specific medical conditions such as thalassemia and sickle cell disease.
- Limited availability, posing severe challenges during emergencies.
Rare Donor Registry of India (RDRI)
- Launched by: ICMR—National Institute of Immunohaematology (NIIH), with support from four regional medical institutes.
- Aim: To systematically address the shortage of rare blood types.
Key Features of RDRI:
- DNA-Based Testing:
- Employs molecular assays for precise donor identification.
- Centralized national database accessible via a dedicated web platform.
- Real-Time Transfusion Support:
- Secure, instant data access and matching capabilities.
- Rapid mobilization for urgent patient requirements.
- Global Connectivity:
- Plans for integration with international rare donor registries.
- Establishment of frozen rare blood inventories for sustainable long-term availability.
Challenges Facing RDRI Implementation:
- Public awareness: Insufficient knowledge and participation in blood donation drives.
- Personnel shortage: Lack of adequately trained staff for specialized antigen screening and handling.
- Decentralized infrastructure: Weak antibody screening capabilities in remote or smaller blood banks.
e-Rakt Kosh Platform: Overview & Features
Developed by: Centre for Development of Advanced Computing (C-DAC) under the National Health Mission, launched in 2016.
Purpose:
A centralized digital platform providing real-time blood availability updates, streamlining donor records, and improving management of blood banks across India.
Coverage:
- Integrated with over 3,800 blood centers in 29 states & 8 Union Territories.
- Connectivity with UMANG App, e-Hospital system, National Health Portal.
Core Features:
- Real-Time Donor Information:
- Immediate updates on blood availability and donor profiles.
- Health history maintenance ensuring transfusion safety.
- Inventory Management:
- Efficiently monitors blood stocks, identifies expired units, ensures timely disposal.
- Camp Management:
- Coordinates blood donation events and proactively addresses shortages through alerts.
- Transparency & Accountability:
- Enhances communication across hospitals, blood banks, and donors.
Significance of RDRI & e-Rakt Kosh Integration:
- Improved availability and quick access to rare blood types during critical emergencies.
- Enhanced donor-recipient matching processes.
- Better management of national blood inventory, reducing wastage and ensuring optimal utilization.
- Strengthened public confidence and increased participation through transparency and efficiency.
Summary
- RDRI, launched by ICMR, targets addressing the scarcity of rare blood types in India.
- Integration with e-Rakt Kosh, India’s national blood bank management digital platform, promises significant improvements in emergency blood transfusions.
- Enhanced system efficiency, donor safety, and improved management of blood resources are key benefits expected from this integration.
Exam Connect – Possible Questions
Prelims
1. Which institution launched India’s Rare Donor Registry (RDRI)?
A. Ministry of Health and Family Welfare
B. Indian Council of Medical Research (ICMR)
C. NITI Aayog
D. AIIMS
Answer: B. Indian Council of Medical Research (ICMR)
2. Consider the following about e-Rakt Kosh:
- It was launched under the National Health Mission.
- Developed by Centre for Development of Advanced Computing (C-DAC).
- It provides real-time blood availability updates.
Select the correct statements using the codes below:
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2, and 3
Answer: D. 1, 2, and 3
3. Bombay blood group (hh) is an example of:
A. Common blood group
B. Rare blood group
C. High-frequency antigen blood group
D. Blood group without clinical relevance
Answer: B. Rare blood group
Mains
1. Explain the significance of integrating India’s Rare Donor Registry (RDRI) with e-Rakt Kosh digital platform. Also, discuss the challenges and suggest measures to enhance the effectiveness of blood transfusion services in India. (15 marks, 250 words)
2. Effective management of blood transfusion services demands technological interventions alongside public awareness. Analyze this statement with reference to initiatives like Rare Donor Registry of India and e-Rakt Kosh. (15 marks, 250 words)
3. Commissioning of INS Tamal – India’s Latest Stealth Multi-Role Frigate – Defence & Security
Why in News?
- The Indian Navy will commission INS Tamal, its latest stealth multi-role frigate, on 01 July 2025 at Kaliningrad, Russia.
- This marks a crucial step forward in India’s defense modernization and aligns with the Aatmanirbhar Bharat initiative.
Key Highlights:
About INS Tamal
- Class: Krivak-class frigate (legacy of Russian origin frigates).
- Name Significance: Named after the mythical sword wielded by Indra, the King of Gods in Hindu mythology.
- Historical Context: It is slated to be the last warship imported, moving towards full indigenous naval construction under Aatmanirbhar Bharat.
Technical Specifications & Capabilities:
1. Indigenous Components (26% Indigenous)
- Prominent inclusion of the BrahMos missile system (long-range supersonic cruise missile).
- Demonstrates India’s growing self-reliance in defense technology.
2. Advanced Weaponry:
- Vertically Launched Surface-to-Air Missiles (VL-SAMs): Enhance defensive capabilities against aerial threats.
- 100 mm Naval Gun: Superior firepower and precision over predecessors.
- Electro-Optical/Infrared (EO/IR) System: Advanced sensor technology to track and engage enemy targets efficiently.
- Heavyweight Torpedoes: Strengthen anti-submarine warfare capabilities.
3. Enhanced Combat Systems:
- Equipped for Network Centric Warfare (NCW), facilitating real-time data sharing and command coordination.
- Advanced Electronic Warfare (EW) suite, crucial for detecting, tracking, and neutralizing enemy electronic systems.
4. Operational Performance:
- Optimal balance between tonnage and firepower.
- Extended endurance allowing prolonged naval operations.
- Speed exceeding 30 knots, providing rapid maneuverability.
5. Mascot:
- Symbolically represented by ‘Jambavant’, the Immortal Bear King from Indian mythology, and the Eurasian Brown Bear, Russia’s national animal—highlighting Indo-Russian strategic ties.
Significance & Strategic Implications:
- Enhanced Naval Power: Bolsters India’s maritime security and surveillance capabilities, especially in critical oceanic regions.
- Strategic Autonomy: Marking the end of dependency on foreign ship imports, encouraging domestic shipbuilding industries.
- Geopolitical Signal: Reflects India’s strategic vision of bolstering maritime diplomacy and defense ties, particularly with Russia.
Summary
- INS Tamal commissioning (July 2025) underlines India’s commitment to modernizing naval capabilities through indigenous components.
- It carries advanced weaponry, surveillance systems, and network-centric warfare technology.
- Represents India’s strategic shift towards defense self-reliance (Aatmanirbhar Bharat) and robust naval presence.
Exam Connect – Possible Questions
Prelims
1. INS Tamal, recently in news, belongs to which class of naval frigates?
A. Talwar Class
B. Krivak Class
C. Shivalik Class
D. Kamorta Class
Answer: B. Krivak Class
2. Which of the following missiles, indigenously developed, is featured prominently in INS Tamal?
A. Prithvi Missile
B. Agni Missile
C. BrahMos Missile
D. Akash Missile
Answer: C. BrahMos Missile
3. INS Tamal is named after a mythical weapon associated with which deity?
A. Vishnu
B. Shiva
C. Indra
D. Agni
Answer: C. Indra
Mains
1. The commissioning of INS Tamal marks a significant milestone in India’s defense modernization. Discuss the strategic importance of incorporating advanced naval technologies and indigenous defense capabilities in the Indian Navy. (15 Marks, 250 words)
2. “Achieving self-reliance in defense manufacturing is critical for India’s strategic autonomy and maritime security.” Critically analyze this statement in the context of INS Tamal’s induction into the Indian Navy. (15 Marks, 250 words)
4. India’s Standing in Critical Technologies – Challenges and Strategic Imperatives – Science and Technology
Why in News?
The Critical and Emerging Technologies Index, a new global benchmarking tool, has assessed 25 countries across five vital technology sectors:
- Artificial Intelligence (AI)
- Semiconductors
- Biotechnology
- Space Technology
- Quantum Technology
India scored 15.2 overall, placing it well behind global leaders like the United States, China, and several European nations.
Key Highlights:
1. About the Index:
- Developed using public and commercial datasets, this index is intended to help policymakers and industry leaders understand their country’s technological strengths and gaps.
- Countries are evaluated on parameters like:
- Funding and investment
- Talent and human capital
- Core technologies
- R&D infrastructure
- Industry-academia collaboration
2. Sector Weightage in the Index:
| Sector | Weightage |
|---|---|
| Semiconductors | 35% |
| Artificial Intelligence (AI) | 25% |
| Biotechnology | 20% |
| Space | 15% |
| Quantum Technology | 5% |
3. India’s Performance – Sector-wise Challenges:
a. Semiconductors (Highest weighted sector – 35%)
- India lacks advanced fabrication facilities (fabs).
- Heavy dependence on imports.
- Insufficient R&D, limited design capability, and talent shortages.
b. Artificial Intelligence (AI)
- Limited by low private R&D spending and slow integration into core industries.
- The U.S. leads due to robust funding and academia-industry collaboration.
c. Biotechnology
- India shows moderate strength in vaccine manufacturing, but falls behind in biopharmaceutical innovation and genomic research.
- France and China perform better due to targeted funding and translational research ecosystems.
d. Space Technology
- India’s achievements through ISRO are commendable (e.g., Chandrayaan, PSLV launches).
- However, it lacks commercial competitiveness and advanced satellite constellations compared to the U.S. or EU.
e. Quantum Technology
- India is in the nascent stage, with fragmented initiatives.
- Limited talent pool, lack of quantum labs and dedicated programs hinder progress.
4. Structural Challenges for India:
- Low strategic investment in frontier technologies compared to OECD countries.
- Fragmented innovation ecosystem: weak coordination between government, academia, and industry.
- Talent gap in high-tech domains due to outdated curricula and limited research opportunities.
- Bureaucratic bottlenecks and slow project implementation cycles.
Recommendations & Way Forward:
- Boost R&D Investment:
- Increase government and private sector spending on critical tech areas, particularly semiconductors and quantum computing.
- Strengthen Talent Development:
- Promote STEM education, specialized PhD programs, and skilling in AI, chip design, and quantum science.
- Foster Synergy Across Sectors:
- Encourage deeper collaboration between academia, industry, and government through innovation hubs and tech clusters.
- Enhance International Collaborations:
- Learn from China’s state-led models and Europe’s R&D consortiums to build scalable tech programs.
- Leverage the PLI Scheme:
- Utilize the Production Linked Incentive (PLI) Scheme for electronics and semiconductor manufacturing effectively.
Summary
- India ranked low in the Critical and Emerging Technologies Index due to poor performance in semiconductors, AI, quantum, and biotech.
- Key challenges: low funding, talent gaps, fragmented innovation ecosystem.
- U.S. leads due to massive investment and strong academia-industry links.
- India must increase R&D investment, build strategic partnerships, and develop a robust tech talent base to improve global competitiveness.
Exam Connect – Possible Questions
Prelims
1. The Critical and Emerging Technologies Index evaluates countries in how many tech sectors?
A. 3
B. 4
C. 5
D. 6
Answer: C. 5
2. In the Critical and Emerging Technologies Index, which sector carries the highest weightage?
A. AI
B. Biotechnology
C. Space
D. Semiconductors
Answer: D. Semiconductors
3. Which of the following is a major reason behind India’s low score in quantum technology?
A. Lack of internet connectivity
B. Weak space infrastructure
C. Talent shortage and lack of research facilities
D. High inflation
Answer: C. Talent shortage and lack of research facilities
Mains
1. India lags behind global leaders in critical technologies despite having a strong IT base. Analyze the reasons behind this gap and suggest strategic measures to boost India’s technological competitiveness. (15 marks, 250 words)
2. “Semiconductor self-sufficiency is crucial for India’s national security and economic autonomy.” Discuss this statement in the context of India’s current technological capabilities and global supply chain disruptions. (15 marks, 250 words)
5. Decadal Analysis of India’s Growth, Equity Issues, and Policy Prospects – Economy
Why in News?
As Prime Minister Narendra Modi completes 11 years in office, a comprehensive review by EY analyzed India’s economic progress (2014–2025) compared to the preceding decade (2004–2014). The report highlights economic achievements, persisting equity challenges, and necessary policy reforms, particularly in agriculture and subsidy structures.
Key Highlights:
1. Macroeconomic Growth:
- India’s nominal GDP increased substantially from $2.04 trillion in 2014 to an anticipated $4.19 trillion by 2025.
- In the decade before (2004–2014), nominal GDP grew from $709 billion to $2.04 trillion.
- By 2025, India is projected to become the world’s 4th largest economy.
2. Per Capita Income Improvement:
- India’s Per Capita Income (PPP terms) has significantly risen from $2,424.2 (2004) to $12,131.8 (2025).
- Despite substantial progress, India’s global per capita income rank improved modestly from 181st to 149th, indicating continued challenges compared to G20 peers.
3. Inclusivity and Equity:
- The Gini coefficient (measuring income inequality: 0 = perfect equality, 1 = maximum inequality) displayed minor fluctuations:
- 2004: 0.34
- 2014: 0.35
- 2021: 0.33
- This suggests moderate inequality, with recent slight improvements.
4. Agricultural Sector Growth:
- Agricultural GDP growth from FY15 to FY25 averaged around 4% annually, despite environmental stresses like droughts.
- Exceeded the previous decade’s growth rate (3.5% annually), showcasing resilience and productivity improvements.
5. Poverty Reduction Achievements:
- Marked reduction in extreme poverty levels:
- 2011: 27.1% population living in extreme poverty.
- 2022: Declined significantly to 5.3%.
- Reflects success of government initiatives on poverty alleviation and socio-economic support programs.
6. Subsidy Reform Proposals:
- Proposed shift towards a targeted, coupon-based system for food and fertilizer subsidies to:
- Enhance nutritional outcomes.
- Improve subsidy efficiency and effectiveness.
- Reduce leakages and fiscal burdens.
7. Challenges & Policy Imperatives:
- Identification of Tenant Farmers:
- Essential for inclusive agricultural support.
- Tenant farmers often overlooked in subsidy distribution.
- Communication and Trust-Building:
- Effective and transparent communication strategies needed to foster farmer trust and successful policy implementation.
Significance and Policy Implications:
- India’s decade-long economic trajectory highlights robust growth and substantial socio-economic improvements.
- Despite achievements, challenges remain, particularly concerning equitable development, rural sustainability, and agricultural productivity.
- Effective subsidy reform, efficient resource allocation, and targeted interventions remain critical to ensure balanced and inclusive economic growth.
Summary
- India’s economy saw significant growth from $2.04 trillion to $4.19 trillion (2014–2025).
- Improved per capita income but global ranking relatively low.
- Gini coefficient suggests stable moderate inequality levels.
- Agricultural sector displayed robust growth, exceeding previous decade performance.
- Remarkable poverty reduction; extreme poverty dropped sharply from 27.1% to 5.3%.
- Emphasis on subsidy reforms and better targeting mechanisms to ensure inclusivity.
Exam Connect – Possible Questions
Prelims
1. According to EY’s report, India’s nominal GDP is projected to reach approximately how much by 2025?
A. $3 trillion
B. $3.5 trillion
C. $4.19 trillion
D. $5 trillion
Answer: C. $4.19 trillion
2. India’s Gini coefficient in 2021 was approximately:
A. 0.28
B. 0.33
C. 0.40
D. 0.45
Answer: B. 0.33
3. India’s agricultural GDP grew at an annual average of what rate from FY15 to FY25?
A. 2%
B. 3.5%
C. 4%
D. 5.5%
Answer: C. 4%
Mains
1. Examine India’s economic growth trajectory from 2014 to 2025. Analyze major achievements and discuss the key challenges India faces in ensuring inclusive growth. (15 marks, 250 words)
2. “Effective subsidy reforms are vital for India’s sustainable economic and agricultural development.” Critically evaluate this statement, suggesting measures for enhancing the inclusivity and efficiency of subsidy delivery in India. (15 marks, 250 words)
6. Entry of Foreign Universities into India – Challenges and Opportunities – Polity
Why in News?
India is witnessing a new phase in its higher education sector as several foreign universities begin establishing branch campuses in the country.
- 7 UK universities, 5 Australian, and 1 each from the US, Italy, and Canada are either in the approval process or have received clearance.
- This shift aligns with the vision of the National Education Policy (NEP) 2020 and is facilitated by UGC’s Foreign Higher Educational Institutions (FHEI) Regulations, 2023.
Key Highlights:
1. Policy and Regulatory Framework:
- NEP 2020: Envisions the internationalization of Indian education and encourages top global universities to operate in India.
- FHEI Regulations, 2023 (UGC):
- Grants significant autonomy to foreign institutions.
- Allows flexibility in curriculum design, admissions, and faculty hiring.
- Ensures accountability and mandates global standards for operation.
2. Proposed Locations:
- Major campuses are likely to come up in:
- GIFT City (Gujarat International Finance Tec-City) – a special economic zone designed to promote world-class infrastructure and ease of doing business.
- Navi Mumbai – an emerging educational and commercial hub.
3. Opportunities for India:
- Large Education Market: India has over 40 million students but a Gross Enrolment Ratio (GER) below 30%, showing untapped potential.
- Growing Demand: Many students seek international-quality education within the country due to:
- High costs of studying abroad.
- Personal and visa-related constraints.
- Economic Benefits: Attracting students from South Asia and other neighboring countries can make India a regional education hub.
- Improving Quality: Exposure to global pedagogies and standards could elevate the overall quality of higher education.
4. Drivers for Foreign Universities:
- Falling Enrolments Abroad: Universities in the UK, Australia, and Canada are seeing a decline in domestic and international enrolments.
- Seeking diversification and financial sustainability, these institutions are targeting India’s youthful demographic and growing middle class.
5. Key Challenges:
a. Affordability:
- Even though tuition fees may be lower than studying abroad, foreign university education in India may still remain unaffordable for a large section of the population.
b. Regulatory Complexity:
- Navigating Indian bureaucracy, infrastructure, and academic regulations can be difficult.
c. Market Adaptability:
- Foreign universities need to adapt their courses, pedagogy, and pricing to Indian socio-economic conditions.
- Global experiences show mixed success in other countries due to cultural and administrative disconnects.
Future Outlook:
- The entry of global institutions can boost India’s educational stature globally, provided:
- A supportive regulatory and policy environment is maintained.
- Fee structures are aligned with domestic affordability.
- Institutions invest in long-term integration, not just profit-making.
Summary
- India is opening its education sector to foreign universities under NEP 2020 and UGC FHEI Regulations 2023.
- Over a dozen universities from the UK, Australia, US, and others are planning campuses in India.
- Key benefits include better access to international education and raising academic standards.
- Major concerns involve affordability, regulatory clarity, and adapting to Indian needs.
- If managed well, India could emerge as a regional education hub.
Exam Connect – Possible Questions
Prelims
1. The UGC’s Foreign Higher Educational Institutions (FHEI) Regulations were released in which year?
A. 2020
B. 2021
C. 2022
D. 2023
Answer: D. 2023
2. Which of the following Indian cities is proposed as a major location for foreign university campuses?
A. Pune
B. Chennai
C. GIFT City
D. Bengaluru
Answer: C. GIFT City
3. The Gross Enrolment Ratio (GER) in India’s higher education sector currently stands at approximately:
A. 45%
B. 30%
C. 25%
D. 50%
Answer: B. 30%
Mains
1. The entry of foreign universities into India marks a transformational shift in the higher education sector. Discuss the opportunities and challenges associated with this development. Suggest measures to ensure affordability and academic quality. (15 marks, 250 words)
2. “Internationalization of higher education can complement but not replace the need for robust domestic education reform.” Critically examine this statement in the context of recent regulatory developments in India. (15 marks, 250 words)
7. Navigating Global Trade Disruptions – Challenges and Strategic Responses for India – Economy
Why in News?
With rising global protectionism and ongoing geopolitical tensions, India faces significant uncertainty in trade and export performance. These global shifts are disrupting supply chains, challenging Indian MSMEs, and affecting long-term economic planning and stability.
Key Highlights:
1. Global Protectionism and Its Impact:
- Several countries, including the United States, are adopting protectionist trade policies—such as increased tariffs and import restrictions—to safeguard their domestic industries.
- Indian exporters are struggling with unpredictable trade routes and changing foreign regulations.
- Sectors affected: Garments, pharmaceuticals, auto components, and gems & jewellery.
2. Geopolitical Tensions Disrupting Trade:
- The U.S.-China trade war, the Russia-Ukraine conflict, and the Red Sea shipping disruptions have:
- Altered global supply chains.
- Increased freight costs and delivery times.
- Made export planning more volatile for Indian businesses.
- Indian exporters now face difficulties in maintaining consistent market access.
3. Tariff Uncertainty and Market Volatility:
- The frequent revision of tariffs, particularly by the U.S., makes it difficult for Indian exporters to commit to long-term trade relationships.
- Export-reliant industries like auto components and jewellery face unpredictability in demand and pricing.
4. MSMEs: Disproportionately Affected:
- Micro, Small, and Medium Enterprises (MSMEs), which form the backbone of Indian exports, suffer the most due to:
- Narrow profit margins.
- Inability to absorb sudden cost escalations.
- Order cancellations and uncertainty in global demand.
5. Strategic Importance of FTAs (Free Trade Agreements):
- FTAs offer preferential market access, reduce tariff burdens, and make Indian products more competitive.
- Example: A proposed India–UK FTA could boost apparel exports, helping Indian producers avoid high tariffs.
- By expanding bilateral and regional FTAs, India can:
- Strengthen trade ties.
- Diversify export markets.
- Reduce dependency on volatile trade partners.
6. Policy Recommendations for India:
To enhance economic resilience and maintain growth momentum, India must:
a. Boost Public Capital Expenditure:
- Invest in infrastructure, logistics, and industrial corridors to reduce domestic bottlenecks.
b. Expand Production-Linked Incentive (PLI) Schemes:
- Encourage manufacturing competitiveness and reduce import dependency in strategic sectors.
c. Maintain Accommodative Monetary Policy:
- Support credit flow and liquidity to businesses, especially MSMEs, during global uncertainty.
Summary
- India faces increasing challenges from global protectionism, tariff uncertainty, and geopolitical disruptions.
- MSMEs, which form a crucial part of the export ecosystem, are especially vulnerable.
- Strategic use of FTAs and robust domestic policy measures can help India mitigate risks and emerge as a reliable global manufacturing and export hub.
- Long-term success requires adaptability, resilience, and proactive international trade diplomacy.
Exam Connect – Possible Questions
Prelims
1. Which of the following is a likely impact of rising global protectionism on Indian exporters?
A. Increased subsidies
B. Unrestricted market access
C. Trade route predictability
D. Tariff-related uncertainties
Answer: D. Tariff-related uncertainties
2. The sector most vulnerable to U.S. tariff fluctuations among the following is:
A. IT Services
B. Pharmaceuticals
C. Gems & Jewellery
D. Agriculture
Answer: C. Gems & Jewellery
3. Which of the following is NOT a proposed solution to navigate global trade uncertainties?
A. Accommodative monetary policy
B. Cutting FTAs
C. Expanding PLI schemes
D. Strengthening public capital expenditure
Answer: B. Cutting FTAs
Mains
1. Rising protectionism and global geopolitical tensions are reshaping international trade. Analyze how these developments are affecting India’s export sector. Suggest strategies to ensure economic resilience and growth. (15 marks, 250 words)
2. “FTAs offer India a strategic opportunity to secure its trade interests in a volatile global environment.” Critically evaluate this statement in light of current global trade disruptions. (15 marks, 250 words)