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DAILY CURRENT AFFAIRS, 16 JANUARY 2026

CONSUMER RIGHTS

 
 
1. Context
 
Every year, National Consumer Rights Day is observed on 24th December to raise awareness about consumer rights and promote fair trade practices. In this context, let’s know about the history of this day and consumer rights in detail.
 
 
2. National Consumer Rights Day
 
  • National Consumer Rights Day in India marks the coming into force of the Consumer Protection Act, 1986, which received the President’s assent on 24 December 1986. In recognition of this milestone, 24 December is observed every year as National Consumer Day.

  • This historic law was enacted to protect the rights of consumers, establish an effective system for resolving complaints related to goods and services, and guarantee fair practices and access to justice in the marketplace.

 
3. Consumer Protection Act, 2019
 
  • The Consumer Protection Act, 2019 superseded the Consumer Protection Act, 1986. It identifies offences such as the supply of incorrect or deceptive information about the quality or quantity of goods or services and the publication of misleading advertisements. The Act also lays down measures to be taken when goods or services are found to be unsafe, hazardous, or harmful.

  • Section 2(28) of the Consumer Protection Act, 2019 explains a “misleading advertisement” as one relating to any product or service that:

    • (i) presents an untrue or incorrect description of the product or service; or

    • (ii) offers a false assurance or is likely to deceive consumers regarding the nature, composition, quantity, or quality of the product or service; or

    • (iii) communicates an implied claim which, if expressly stated by the manufacturer, seller, or service provider, would amount to an unfair trade practice; or

    • (iv) intentionally withholds material information.

  • Section 21 of the Act outlines the enforcement powers of the Central Consumer Protection Authority (CCPA) against deceptive advertising. If, after inquiry, the CCPA concludes that an advertisement is false or misleading and prejudicial to consumer interests or violates consumer rights, it may direct the trader, manufacturer, advertiser, publisher, or endorser to withdraw or suitably alter the advertisement within a specified timeframe.

  • The CCPA is empowered to levy a fine of up to ₹10 lakh and impose imprisonment up to two years on manufacturers or endorsers responsible for misleading advertisements. For repeated violations, the penalty may increase to ₹50 lakh, along with imprisonment up to five years. Additionally, the authority can prohibit endorsers from promoting any goods or services for up to one year, which may extend to three years for subsequent breaches of the Act.

 
 
4.  Government Guidelines on Misleading Ads
 
  • In November last year, the Union government issued fresh norms to curb deceptive advertising by coaching institutes, barring exaggerated or false assurances such as “100% selection” or “guaranteed employment”. These rules were framed by the Central Consumer Protection Authority (CCPA) following a surge in complaints received through the National Consumer Helpline.

  • As per the new framework, coaching institutions are barred from making misleading statements about the nature and length of courses, qualifications of faculty, fee details and refund terms, success rates and rankings in examinations, as well as promises of assured jobs or salary hikes.

  • The guidelines clarify that the term “coaching” covers educational assistance, academic guidance, structured study programmes and tuition, while excluding counselling services, sports training, and creative or artistic pursuits.

  • Coaching centres are not permitted to use the names, images, or endorsements of successful candidates unless explicit written permission is obtained after their selection. They are also required to clearly display disclaimers and fully disclose key course-related information in their advertisements.

 
 
5. Central Consumer Protection Authority (CCPA)
 
 
  • The Central Consumer Protection Authority (CCPA) functions as India’s highest consumer regulatory body. It was constituted under Section 10(1) of the Consumer Protection Act, 2019 and started functioning on 24 July 2020.

  • The Authority is responsible for overseeing violations of consumer rights, addressing unfair trade practices, and taking action against false or deceptive advertisements that harm the collective interests of consumers and the wider public.

  • Powers and Functions of the CCPA include:

    (i) Safeguarding, advancing, and enforcing consumer rights as a collective and preventing their infringement under the Act;

    (ii) Curbing unfair trade practices and ensuring that individuals or entities do not indulge in such practices;

    (iii) Preventing the circulation of misleading or false advertisements for goods or services that violate the Act or related rules and regulations;

    (iv) Ensuring accountability of all parties involved in publishing deceptive advertisements;

    (v) Initiating complaints before Consumer Commissions and examining issues connected to the protection of consumer rights;

    (vi) Advising on the adoption of international agreements and standards relating to consumer protection;

    (vii) Encouraging consumer awareness and supporting research in the area of consumer rights;

    (viii) Providing guidance to Central and State governments and their departments on policies and measures aimed at consumer welfare.

 
 
6. Way Forward
 
Consumer rights form the backbone of a fair, transparent, and accountable market economy. With the enactment of the Consumer Protection Act, 2019 and the establishment of the Central Consumer Protection Authority, India has significantly strengthened its institutional and legal framework to protect consumers against unfair trade practices and misleading advertisements. These measures not only empower consumers with enforceable rights and effective grievance redressal mechanisms but also promote ethical business conduct. As markets become more complex and digitalised, continuous awareness, strict enforcement, and responsive regulation are essential to ensure that consumer welfare remains central to economic growth and good governance
 
 
 
 
For Prelims: Current events of national and international importance
For Mains: General Studies II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation
 
Previous Year Questions
1. Which of the following statements about the 'Consumer Protection Act 2019' is not true? (UGC NET 2020)
A.It has widened the definition of consumer
B.It provides for E-filing of complaints
C.It establishes Central Consumer Protection Authority
D.It ignores mediation as an alternate disputes resolution mechanism
Answer (D)
Source: Indanexpress
 

MINERALS SECURITY PARTNERSHIP (MSP)

 
 
1. Context
 
Amid anticipation that India and the US are close to signing the first phase of the long-awaited trade deal, the newly appointed US Ambassador Sergio Gor on Monday said that the “next call” on trade between the two countries is set to happen on January 13
 
2.Minerals Security Partnership (MSP)
 
The Minerals Security Partnership (MSP) is a strategic international initiative aimed at bolstering the security and sustainability of critical mineral supply chains. These minerals are essential for advanced technologies, including renewable energy systems, electric vehicles, and semiconductors

The partnership includes major economies and resource-rich nations, typically led by countries such as the United States, Canada, Australia, and Japan, among others. These nations collaborate to identify and develop alternative sources of critical minerals and secure reliable supply chains.

India, though not a formal member of the MSP, recognizes the strategic importance of securing critical mineral supplies. The country has been taking steps to explore domestic resources, establish bilateral agreements, and invest in overseas mining ventures.
This partnership underscores the global recognition of the importance of critical minerals in achieving economic security, energy transition goals, and technological resilience

Importance of Critical Minerals:

Critical minerals like lithium, cobalt, nickel, rare earth elements, and graphite are vital for:

  • Clean Energy Transition: Supporting technologies like wind turbines, solar panels, and batteries.
  • Defense and Aerospace: Enabling advanced weaponry, satellites, and aviation systems.
  • Technological Advancements: Powering semiconductors, smartphones, and electric vehicles
 
3. Key takeaways on Minerals Security Partnership
 
  • In June 2023, India became part of the MSP, a US-led alliance of 14 countries focused on fostering public and private investments to enhance global supply chains for critical minerals. A joint statement released by India and the US on June 23, 2023, highlighted their shared commitment to ensuring adequate supplies of essential critical minerals for their respective markets. It also emphasized accelerating bilateral efforts to establish resilient supply chains, marking India's formal entry into the partnership.

  • The MSP member countries include Australia, Canada, Estonia, Finland, France, Germany, India, Italy, Japan, Norway, South Korea, Sweden, the United Kingdom, the United States, and the European Union, represented by the European Commission.

  • The partnership focuses on minerals such as cobalt, nickel, lithium, and the 17 rare earth elements. Its objective is to create an alternative to China's dominance in rare earth processing and its acquisition of cobalt mines in Africa.

  • Current collaborative efforts within the MSP involve establishing a forum for expertise sharing, building a robust battery material supply chain, and working on the development of a minerals processing facility in South America.

  • The MSP gained further momentum with the creation of the MSFN in September, which comes amid a growing reliance on countries like China for critical resources, particularly rare earth minerals.

  • As part of the new partnership, member nations acknowledged that addressing the rising global demand for critical minerals to facilitate the clean energy transition requires collective efforts beyond the capacity of any single institution. Public and private sectors within member countries must collaborate to mobilize investments in both new and existing markets in this field.

  • Speaking at the United Nations General Assembly in New York, US Undersecretary of State Jose W. Fernandez remarked, “The energy transition is at risk. We need increased production capacity for critical minerals, as many supply chains are concentrated in one or two countries and lack resilience.”

 
4. Rear Earth Minerals
 
  • The 17 rare earth elements (REEs) comprise the 15 Lanthanides (atomic numbers 57 to 71, starting with Lanthanum) along with Scandium (atomic number 21) and Yttrium (atomic number 39). These elements are categorized into two groups: light rare earth elements (LREEs) and heavy rare earth elements (HREEs).

  • REEs, though used in small amounts, are critical components in over 200 consumer products, such as mobile phones, computer hard drives, electric and hybrid vehicles, semiconductors, flat-screen TVs, monitors, and advanced electronics. India has been a late entrant in the lithium value chain, coinciding with projections of a significant transformation in the electric vehicle (EV) sector.

  • India has some REEs, including Lanthanum, Cerium, Neodymium, Praseodymium, and Samarium. However, heavy rare earth elements like Dysprosium, Terbium, and Europium are not present in extractable quantities within Indian deposits. As a result, India depends on imports from countries like China, which dominates the global REE market with an estimated 70% share of global production

 
5. Critical minerals and India's import reliance
 
Minerals Security Partnership (MSP), Minerals Security Finance Network (MSFN), critical minerals, rare earths

Critical minerals are essential for the manufacturing of advanced technologies, including renewable energy systems, electric vehicles, and high-end electronics. These minerals, such as lithium, cobalt, nickel, and rare earth elements, play a vital role in supporting India's transition to a low-carbon economy and enhancing its industrial and technological capabilities.

India's Import Reliance

  • Dependence on Key Suppliers:
    India heavily depends on imports for critical minerals, with China being a dominant supplier, especially for rare earth elements (REEs). China's extensive processing infrastructure and global mining investments make it a critical player in this sector.

  • Limited Domestic Availability:
    While India possesses some rare earth elements like lanthanum, cerium, neodymium, and praseodymium, others, particularly heavy rare earth elements such as dysprosium and terbium, are either unavailable or found in non-extractable quantities within the country.

  • Strategic Vulnerability:
    Over-reliance on imports exposes India to supply chain disruptions, geopolitical risks, and market volatility, threatening its clean energy and technological goals

 
 
For Prelims: Critical minerals, Ministry of Mines, carbon emissions,  cleaner energy,  lithium, cobalt, nickel, graphite, tin, copper, Selenium, Cadmium, Centre of Excellence on critical minerals, Australia's CSIRO, Geological Survey of India, 
 
For Mains: 
1. What are critical minerals? Discuss their significance for a country's economic development and national security. Explain how the identification of critical minerals helps in reducing import dependency and ensuring resource security. (250 Words)
 
 
Previous Year Questions
 
1. With reference to the mineral resources of India, consider the following pairs: (UPSC 2010)
Mineral                         90%Natural sources in
1. Copper                       Jharkhand
2. Nickel                        Orissa
3. Tungsten                    Kerala
Which of the pairs given above is/are correctly matched?  
A. 1 and 2 only            B. 2 only             C. 1 and 3 only            D. 1, 2 and 3
 
Answer: B
 
2. Recently, there has been a concern over the short supply of a group of elements called 'rare earth metals.' Why? (UPSC 2012)
1. China, which is the largest producer of these elements, has imposed some restrictions on their export.
2. Other than China, Australia, Canada and Chile, these elements are not found in any country. 3. Rare earth metals are essential for the manufacture of various kinds of electronic items and there is a growing demand for these elements.
Which of the statements given above is/are correct?
A. 1 only              B. 2 and 3 only           C. 1 and 3 only          D.  1, 2 and 3
 
Answer: C
 
3. In India, what is the role of the Coal Controller's Organization (CCO)? (UPSC 2022)
1. CCO is the major source of Coal Statistics in Government of India.
2. It monitors progress of development of Captive Coal/Lignite blocks.
3. It hears any objection to the Government's notification relating to acquisition of coal-bearing areas.
4. It ensures that coal mining companies deliver the coal to end users in the prescribed time. Select the correct answer using the code given below:
A. 1, 2 and 3            B. 3 and 4 only           C. 1 and 2 only          D. 1, 2 and 4
 
Answer: A
 
4. Which of the following statements best describes the term 'Social Cost of Carbon'? It is a measure, in monetary value, of the (UPSC 2020) 
A. long-term damage done by a tonne of CO2 emission in a given year.
B. requirement of fossil fuels for a country to provide goods and services to its citizens, based on the burning of those fuels.
C. efforts put in by a climate refugee to adapt to live in a new place.
D. contribution of an individual person to the carbon footprint on the planet Earth.
 
Answer: A
 
5. Direction: It consists of two statements, one labelled as ‘Statement (I)’ and the others as ‘Statement (II)’. You are to examine these two statements carefully and select the answer using the codes given below: (UPSC ESE 2018)
Statement (I): Green energy refers to one which does not harm the ecosystem of planet earth. Statement (II): All renewable energy is green energy.
A. Both Statement (I) and Statement (II) individually true and Statement (II) is the correct explanation of Statement (I)
B. Both statement (I) and Statement (II) are individually true, but Statement (II) is not the correct explanation of Statement (I)
C. Statement (I) is true, but Statement (II) is false
D. Statement (I) is false, but Statement (II) is true
 
Answer: C
 
6. Which type of battery is used in the recently launched world's first fully electric cargo ship by change? (Delhi Police Constable 2017)
A.  Lead Acid        B. Manganese        C. Lithium ion        D. Nickel metal hydride
 
Answer: C
 
7. White gold is an alloy of (UPSC CAPF 2022) 
A. gold, nickel and palladium
B. gold, cobalt and palladium
C. gold, titanium and platinum
D. gold, magnesium and palladium
 
Answer: A
 
8. Graphene is frequently in news recently. What is its importance? (UPSC 2012) 
1. It is a two-dimensional material and has good electrical conductivity.
2. It is one of the thinnest but strongest materials tested so far.
3. It is entirely made of silicon and has high optical transparency.
4. It can be used as 'conducting electrodes' required for touch screens, LCDs and organic LEDs. Which of the statements given above are correct?
A. 1 and 2 only          B. 3 and 4 only         C.  1, 2 and 4 only          D.  1, 2, 3 and 4
 
Answer: C
 
9. Graphite and diamonds are__________. (WBCS Prelims 2020)
 
A. isotopes           B.  isomers             C. isotones           D. allotropes
 
Answer: D
 
10. Consider the following statements: (UPSC 2020)
1. Coal ash contains arsenic, lead and mercury.
2. Coal-fired power plants release sulphur dioxide and oxides of nitrogen into the environment. 3. High ash content is observed in Indian coal.
Which of the statements given above is/are correct?
A. 1 only         B. 2 and 3 only        C.  3 only         D. 1, 2 and 3
 
Answer: D
 
11. Which of the following can be found as pollutants in the drinking water in some parts of India? (UPSC 2013)
1. Arsenic
2. Sorbitol
3. Fluoride
4. Formaldehyde
5. Uranium
Select the correct answer using the codes given below.
A. 1 and 3 only           B. 2, 4 and 5 only          C. 1, 3 and 5 only           D.  1, 2, 3, 4 and 5
 
Answer: C
 
12. In the context of solving pollution problems, what is/are the advantage/advantages of the bioremediation technique? (UPSC 2017)
1. It is a technique for cleaning up pollution by enhancing the same biodegradation process that occurs in nature.
2. Any contaminant with heavy metals such as cadmium and lead can be readily and completely treated by bioremediation using microorganisms.
3. Genetic engineering can be used to create microorganisms specifically designed for bioremediation.
Select the correct answer using the code given below: 
A. 1 only         B.  2 and 3 only          C.  1 and 3 only             D. 1, 2 and 3
 
Answer: C
 
13. Due to improper/indiscriminate disposal of old and used computers or their parts, which of the following are released into the environment as e-waste? (UPSC 2013) 
1. Beryllium
2. Cadmium
3. Chromium
4. Heptachlor
5. Mercury
6. Lead
7. Plutonium
Select the correct answer using the codes given below. 
A. 1, 3, 4, 6 and 7 only           B. 1, 2, 3, 5 and 6 only         
C. 2, 4, 5 and 7 only               D. 1, 2, 3, 4, 5, 6 and 7
 
Answer: B
 
14. When was the Geological Survey of India (GSI) of India founded? (UPRVUNL Staff Nurse 2021)
A. 1851             B. 1951            C. 1871              D. 1931
 
Answer: A
 
 
Source: Indianexpress
 

RETAIL INFLATION

 

1. Context

India’s retail inflation quickened to a three-month high of 1.33% in December 2025, which is still significantly below the lower comfort level of 2% set by the Reserve Bank of India (RBI), official data released on Monday showed.

2. What is Inflation?

  • It is the rise in prices of goods and services within a particular economy wherein consumers' purchasing power decreases, and the value of the cash holdings erodes.
  • In India, the Ministry of Statistics and Programme Implementation (MoSPI) measures inflation.
  • Some causes that lead to inflation are demand increases, reduction in supply, demand-supply gap, excess circulation of money, increase in input costs, devaluation of the currency, and rise in wages, among others.

3. Retail Inflation

Consumers often directly buy from retailers. So, the inflation experienced at retail reflects the actual price rise in the country. It also shows the cost of living better. In India, the index that reflects the inflation rate at the retail level is known as Consumer Price Index (CPI). Unlike WPI, CPI includes both goods and services. CPI is used to calculate the Dearness Allowance (DA) for government employees.

4. How Inflation is measured?

  • In India, inflation is primarily measured by two main indices- WPI (Wholesale Price Index) and CPI (Consumer Price Index), Which measures Wholesale and retail-level price changes, respectively.
  • The CPI calculates the difference in the price of commodities and services such as food, medical care, education, electronics, etc, which Indian consumers buy for use.
  • On the other hand, the goods or services sold by businesses to smaller businesses for selling further are captured by the WPI.
  • Both WPI (Wholesale Price Index) and CPI (Consumer Price Index) are used to measure inflation in India. 

5. What is the Inflation Target?

  • Under Section 45ZA, in consultation with the RBI Act, the Central Government determines the inflation target in terms of the Consumer Price Index (CPI), once in five years and notifies it in the Official Gazette.
  • Accordingly, on August 5, 2016, the Central Government notified in the Official Gazette 4 percent Consumer Price Index (CPI) inflation as the target for the period from August 5, 2016, to March 31, 2021, with the upper tolerance limit of 6 percent and the lower tolerance limit of 2 percent.
  • On March 31, 2021, the Central Government retained the inflation target and the tolerance band for the next 5-year period-April 1, 2021 to March 31, 2026.
  • Section 45ZB of the RBI Act provides for the constitution of a six-member Monetary Policy Committee (MPC) to determine the policy rate required to achieve the inflation target.

6. Monetary Policy Committee (MPC)

  • The MPC is a statutory and institutionalized framework under the RBI Act, of 1934, for maintaining price stability, keeping in mind the objective of growth. It was created in 2016.
  • It was created to bring transparency and accountability in deciding monetary policy.
  • MPC determines the policy interest rate required to achieve the inflation target.
  • The committee comprises six members and Governor RBI acts as an ex-officio chairman. Three members are from RBI and three are selected by the government. The inflation target is to be set once every five years. It is set by the Government of India, in consultation with the Reserve Bank of India.
  • The current inflation target is pegged at 4% with -2/+2 tolerance till March 31, 2021.

7. What Caused the drop in Inflation?

  • Retail Inflation or price gains based on the Consumer Price Index, slowed to 6.77 % last month, from September's 7.41%, aided by an appreciable deceleration in food price inflation.
  • The year-on-year inflation based on the Consumer Food Price Index eased by almost 160 basis points in October, to 7.01%, from the preceding month's 8.60%, helped by a 'decline in prices of vegetables, fruits, pulses and oils, and fats', the Government said.
  • With the food and beverages sub-index representing almost 46% of the CPI's weight, the slowdown in food price gains understandably steered overall inflation lower even as price gains in three other essential categories, namely clothing, and footwear, housing, and health remained either little changed from September or quickened.
  • Inflation at the Wholesale Prices Level also continued to decelerate, with the headline reading easing into single digits for the first time in 19 months. A favorable base effect along with a distinct cooling in international prices of commodities including crude oil and steel amid gathering uncertainty in advanced economies was largely instrumental in tempering wholesale price gains.

8. Recent Measures by the Government

To soften the prices of edible oils and pulses, tariffs on imported items have been rationalized from time to time. The stock limits on edible oils are also maintained, to avoid hoarding.
The Government has taken trade-related measures on wheat and rice to keep domestic supplies steady and curb the rise in prices.
The impact of these measures is expected to be felt more significantly in the coming months.

For Prelims & Mains

 

For Prelims: Inflation, MPC, CPI, WPI, food Inflation, RBI, Headline inflation, Core inflation

For Mains: 
 1. Explain the concept of inflation and its impact on an economy. Discuss the various causes of inflation and the measures that can be taken to control it, with specific reference to India. (250 Words)
2. What are the challenges and opportunities associated with managing inflation in India? Evaluate the effectiveness of recent policy measures in addressing inflationary pressures and maintaining price stability. Suggest strategies for sustainable economic growth while managing inflation risks. (250 Words)
 
 
Previous Year Questions
 
1. Consider the following statements:  (UPSC 2021)
1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in the public interest.
3. The Governor of the RBI draws his natural power from the RBI Act.
Which of the above statements is/are correct? 
A. 1 and 2 only    B.  2 and 3 only     C. 1 and 3 only     D. 1, 2 and 3
 
 
2. Concerning the Indian economy, consider the following: (UPSC 2015)
  1. Bank rate
  2. Open Market Operations
  3. Public debt
  4. Public revenue

Which of the above is/are component(s) of Monetary Policy?

(a) 1 only   (b) 2, 3 and 4    (c) 1 and 2     (d) 1, 3 and 4

 

3. An increase in Bank Rate generally indicates: (UPSC 2013)

(a) Market rate of interest is likely to fall.
(b) Central bank is no longer making loans to commercial banks.
(c) Central bank is following an easy money policy.
(d) Central bank is following a tight money policy.
 

4. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)? (UPSC 2017) 

1. It decides the RBI's benchmark interest rates.
2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
3. It functions under the chairmanship of the Union Finance Minister.

Select the correct answer using the code given below:

A. 1 only      B.  1 and 2 only      C. 3 only      D. 2 and 3 only

 
5. Read the following passage and answer the question that follows. Your answers to these items should be based on the passage only.
Policymakers and media have placed the blame for skyrocketing food prices on a variety of factors, including high fuel prices, bad weather in key food producing countries, and the diversion of land to non-food production. Increased emphasis, however, has been placed on a surge in demand for food from the most populous emerging economics. It seems highly probable that mass consumption in these countries could be well poised to create a food crisis.
With reference to the above passage, the following assumptions have been made: (UPSC 2021)
1. Oil producing countries are one of the reasons for high food prices.
2. If there is a food crisis in the world in the near future, it will be in the emerging economies. Which of the above assumptions is/are valid?
A. 1 only        B. 2 only           C. Both 1 and 2         D.  Neither 1 nor 2
 
 
6. India has experienced persistent and high food inflation in the recent past. What could be the reasons? (UPSC 2011)
1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3. The food supply chain has structural constraints.
Which of the statements given above are correct? 
A. 1 and 2 only          B. 2 and 3 only        C. 1 and 3 only          D. 1, 2 and 3
 
 
7. With reference to inflation in India, which of the following statements is correct? (UPSC 2015) 
A. Controlling the inflation in India is the responsibility of the Government of India only
B. The Reserve Bank of India has no role in controlling the inflation
C. Decreased money circulation helps in controlling the inflation
D. Increased money circulation helps in controlling the inflation
 
 
8. With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct? (UPSC 2016)
1. The Agreement was signed by all the member countries of the UN and it will go into effect in 2017
2. The Agreement aims to limit greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2°C or even 1.5°C above pre-industrial levels.
3. Developed countries acknowledged their historical responsibility in global warming and committed to donate $ 1000 billion a year from 2020 to help developing countries to cope with climate change.
Select the correct answer using the code given below:
A. 1 and 3 only     B.  2 only        C. 2 and 3 only        D. 1, 2 and 3
 
Answers: 1-C, 2-C, 3-D, 4-A, 5-D, 6-B, 6-C, 7-B
 
 
Source: The Hindu
 
 

PARTICULARLY VULNERABLE GROUPS (PVTG)

 
 
1. Context
The Biju Janata Dal (BJD) warned on Friday that it will take to the streets if the interests of Particularly Vulnerable Tribal Groups (PVTGs) in Odisha’s Malkangiri district are compromised by the Polavaram irrigation project, which the Opposition party alleges is progressing without “valid environmental clearanc4es” from the Ministry of Environment, Forest and Climate Change for its revised parameters.
 
2.Who are Particularly Vulnerable Tribal Groups (PVTG)?
 
  • Particularly Vulnerable Tribal Groups (PVTGs) are specific indigenous communities in India that face an exceptionally high risk of vulnerability and marginalization due to various factors like geographic isolation, social and economic deprivation, and historical injustices.
  • These groups are identified based on criteria set by the Indian government, considering their unique cultural practices, distinct languages, and social customs that set them apart from the larger population.
  • PVTGs receive special attention and support from government agencies and NGOs to protect their distinct identities, preserve their cultural heritage, improve their living conditions, and ensure their socio-economic development. Various welfare schemes and initiatives are directed towards these groups to address their specific needs, including access to healthcare, education, livelihood opportunities, land rights, and basic amenities. The aim is to empower these communities while respecting their traditions and way of life
  • The actual number of PVTGs is around 63, accounting for overlaps and repetitions, as per the publication ‘The Particularly Vulnerable Tribal Groups of India — Privileges and Predicaments’ by the Anthropological Survey of India
  • Baseline surveys have only been conducted for about 40 PVTG groups, emphasising the need for targeted development planning.
  • In India, the identification and declaration of Particularly Vulnerable Tribal Groups (PVTGs) is done by the Ministry of Tribal Affairs at the national level, in collaboration with state governments. The identification process involves specific criteria and guidelines set by the government to assess the vulnerability and distinctiveness of tribal communities
  • Odisha (formerly Orissa) in India is known to have the highest number of Primitive Tribal Groups (PTGs). This state is home to a significant population of indigenous or tribal communities, some of which are categorized as Primitive Tribal Groups due to their isolated lifestyle, unique cultural practices, and historical marginalisation.
 
3. What are the challenges in PVTG development?

The development of Particularly Vulnerable Tribal Groups (PVTGs) faces several challenges, primarily due to their unique circumstances, cultural isolation, historical marginalization, and specific vulnerabilities.

Some of the key challenges include:

  • Many PVTGs reside in remote and geographically isolated areas, which pose challenges in terms of accessibility for delivering essential services like healthcare, education, and infrastructure development
  • PVTGs often face economic deprivation, lack of livelihood opportunities, and limited access to resources. Poverty and inadequate infrastructure exacerbate their challenges
  • Balancing the preservation of their distinct cultural identities and traditions with the need for socio-economic development poses a challenge. Development interventions must be culturally sensitive and respect their traditional practices
  • PVTGs frequently experience health disparities and inadequate access to healthcare facilities. Malnutrition and lack of awareness about modern healthcare practices are common concerns
  • Limited access to quality education due to factors like language barriers, lack of schools in remote areas, and cultural differences hampers educational development among PVTGs
  • Disputes over land rights and lack of secure land tenure affect their livelihoods. Encroachment on their traditional lands and displacement due to development projects further exacerbate these challenges
  • PVTGs are vulnerable to exploitation due to their marginalized status. They often face social discrimination, human rights violations, and exploitation in labor and other spheres

4.Government's Approach in addressing the Issues

 

  • Participatory approach from the grassroots level: Rather than a standardized approach, the program tailors strategies to suit the unique requirements of PVTGs, actively engaging them in decision-making related to land rights, social integration, and cultural conservation. This method, rooted in community involvement, embraces their customs, beliefs, and traditions, ensuring their active involvement in the planning, execution, and oversight of development endeavors.
  • Enhancing livelihoods: Empowering through skill-building programs and providing resources such as land and credit facilitates sustainable livelihoods. Implementation of the Forest Rights Act, specifically Section 3(1)(e) for the rights of primitive tribal groups and pre-agricultural communities, secures their access to forest resources. Encouraging traditional techniques and skill enhancement via partnerships with industries contributes to preserving cultural heritage alongside sustainable progress.
  • Health, nutrition, and education focus: Deploying outreach methods like Mobile Medical Health Units becomes imperative in remote regions. Tailoring these strategies to address specific health concerns like teenage pregnancies and dental health, and bridging language and cultural gaps through trained healthcare personnel or recruiting community members is vital. Collaborating with trusted traditional healers can also assist in addressing intricate health challenges.
  • Incorporating their language and culture into educational curricula, offering transportation services, and training educators about PVTG cultural contexts enhance educational accessibility. Additionally, incentivizing staff working in PVTG areas and establishing specialized educational institutions catering to PVTG needs can augment opportunities for these communities.
  • Infrastructure development challenges: The settlements of PVTGs often fail to meet requirements for schemes like the Pradhan Mantri Grameen Sadak Yojana, Pradhan Mantri Awas Yojana, and Jal Jeevan Mission due to factors like population thresholds or insufficient surveys
5.What schemes have been floated for PVTG?
 

Several schemes and initiatives have been introduced by the Indian government to address the needs and uplift the living standards of Particularly Vulnerable Tribal Groups (PVTGs). Some of these schemes include:

  • Vanbandhu Kalyan Yojana: Launched by the Ministry of Tribal Affairs, this scheme aims to improve the socio-economic status of tribal communities, including PVTGs, by focusing on areas like education, healthcare, livelihood, and infrastructure development.

  • Scheduled Tribes Component (STC): Under this scheme, funds are allocated to states to implement various development programs for tribal communities, including PVTGs. These funds support initiatives related to education, health, housing, and skill development.

  • Special Central Assistance to Tribal Sub-Schemes (SCA to TSS): This scheme provides financial assistance to tribal development projects, including those focused on PVTGs, aimed at their socio-economic empowerment.

  • Forest Rights Act (FRA): Implementation of the Forest Rights Act is crucial for securing land and resource rights for tribal communities, including PVTGs, allowing them access to forest resources and improving their livelihoods.

  • Eklavya Model Residential Schools (EMRS): EMRS aims to provide quality education to tribal children, including those from PVTGs, by establishing residential schools with modern facilities and educational resources.

  • Integrated Tribal Development Agencies (ITDAs): These agencies work on comprehensive development plans for tribal areas, including PVTG regions, focusing on education, healthcare, infrastructure, and livelihood promotion.

  • Tribal Sub-Plan (TSP) and Tribal Development Blocks (TDBs): These plans and blocks are dedicated to tribal development, including PVTGs, ensuring targeted allocation of funds for their socio-economic upliftment

6. Way forward
 
A 2014 report by Dr. Hrusikesh Panda, Secretary of the Ministry of Tribal Affairs, and a 2015 report by Virginius Xaxa highlighted these concerns. The actual number of PVTGs is around 63, accounting for overlaps and repetitions, as per the publication ‘The Particularly Vulnerable Tribal Groups of India — Privileges and Predicaments’ by the Anthropological Survey of India
 
 
For Prelims: Indian Polity and Governance-Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues, etc.
For Mains: General Studies II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation
 

Previous Year Questions

1. Consider the following statements about Particularly Vulnerable Tribal Groups (PVTGs) in India:  (UPSC 2019)
1. PVTGs reside in 18 States and one Union Territory.
2. A stagnant or declining population is one of the criteria for determining PVTG status.
3. There are 95 PVTGs officially notified in the country so far.
4. Irular and Konda Reddi tribes are included in the list of PVTGs.
Which of the statements given above are correct?
A. 1, 2 and 3             B.  2, 3 and 4               C. 1, 2 and 4               D. 1, 3 and 4

Answer: C

2. With reference to the history of India, "Ulgulan" or the Great Tumult is the description of which of the following events? (UPSC 2020)

A. The Revolt of 1857
B. The Mappila Rebellion of 1921
C. The Indigo Revolt of 1859 - 60
D. Birsa Munda's Revolt of 1899 - 1900

Answer: D

3. When did the Tana’ Bhagat Movement start?  (Jharkhand Civil Service 2015) 
A. April 1912             B. April 1913     C.  April 1914          D.  April 1915
 
Answer: C
 
4. Consider the following statements about the Santhal Hool of 1855 - 56: (UPSC CAPF)
1. The Santhals were in a desperate situation as tribal lands were leased out
2. The Santhal rebels were treated very leniently by British officials
3. Santhal inhabited areas were eventually constituted separate administrative units called Santhal parganas
4. The Santhal rebellion was the only major rebellion in mid-19th century India.
Which of the statements given above is/are correct? 
A. 1 only         B. 2 and 3    C. 1, 3 and 4     D. 1 and 3 only
 
Answer: D
 
 
5. After the Santhal Uprising subsided, what was/were the measure/measures taken by the colonial government? (UPSC 2018)
1. The territories called 'Santhal Paraganas' were created.
2. It became illegal for a Santhal to transfer land to a non-Santhal.
Select the correct answer using the code given below:
A. 1 only          B.  2 only             C. Both 1 and 2         D. Neither 1 nor 2
 
Answer: C
 
6. The National Commission for Backward Classes (NCBC) was formed by insertion of Article ______ in the Constitution of India. (SSC CGL 2020) 
A. 328B         B.  338A            C. 338B            D. 328A
 
Answer: B
 
 
7. With reference to the Parliament of India, which of the following Parliamentary Committees scrutinizes and reports to the House whether the powers to make regulations, rules, sub-rules, by-laws, etc. conferred by the Constitution or delegated by the Parliament are being properly exercised by the Executive within the scope of such delegation? (UPSC  2018)
 
A. Committee on Government Assurances
B. Committee on Subordinate Legislation
C. Rules Committee
D. Business Advisory Committee
 
Answer: B
 
8. Justice Madan B Lokur committee was set up to take steps to (Haryana Civil Services 2021)
A. Look into violation of environment rules.
B. Prevent stubble burning
C. Draft new water policy
D. Regulate digital lending
 
Answer: B
 
9. Match the pairs -  (Committees on Media) (MPSC 2019)
(A) (Name)                                    (B) (Year)
(a) Chanda Committee                   (i) 1982
(b) Kuldip Nayar Committee        (ii) August, 1977
(c) Verghese Committee               (iii) March, 1977
(d) P.C. Joshi Committee              (iv) 1964
 
1. (a) – (i), (b) – (ii), (c – (iii), (d) – (iv)
2. (a) – (i), (b) – (iii), (c – (ii), (d) – (iv)
3. (a) – (iv), (b) – (iii), (c – (ii), (d) – (i)
4. (a) – (iv), (b) – (ii), (c – (iii), (d) – (i)
 
Answer: 3
 
10. Consider the formation of the following States and arrange these in chronological order :  (UPPSC Combined State Exam 2021)
1. Goa
2. Telangana
3. Jharkhand
4. Haryana
Select the correct answer from the codes given below.
A. 1, 2, 3, 4       B. 4, 1, 3, 2       C. 3, 2, 4, 1          D. 4, 3, 1, 2
 
Answer: 2
 
Source: Indianexpress
 

GOODS AND SERVICE TAX (GST)

 
 
1. Context
 
Revenue losses due to implementation of mid-year GST rationalisation, erosion of fiscal powers, more equitable Centre-state funding pattern in centrally sponsored schemes (CSS), including the recently-amended rural employment guarantee scheme — these were some of the key issues raised by states and Union territories in the pre-Budget meeting chaired by Union Finance Minister
 
2. What is the Goods and Services Tax (GST)?
  • The Goods and Services Tax (GST) is a value-added tax levied on the supply of goods and services at each stage of the production and distribution chain. It is a comprehensive indirect tax that aims to replace multiple indirect taxes imposed by the central and state governments in India.
  • GST is designed to simplify the tax structure, eliminate the cascading effect of taxes, and create a unified national market. Under the GST system, both goods and services are taxed at multiple rates based on the nature of the product or service. The tax is collected at each stage of the supply chain, and businesses are allowed to claim a credit for the taxes paid on their inputs.
  • The GST system in India came into effect on July 1, 2017, replacing a complex tax structure that included central excise duty, service tax, and state-level taxes like VAT (Value Added Tax), among others. The GST Council, consisting of representatives from the central and state governments, is responsible for making decisions on various aspects of GST, including tax rates and rules.
  • GST is intended to create a more transparent and efficient tax system, reduce tax evasion, and promote economic growth by fostering a seamless flow of goods and services across the country. It has a significant impact on businesses, as they need to comply with the new tax regulations and maintain detailed records of their transactions for GST filing

3.Goods and Services Tax (GST) and 101st Amendment Act, 2016

The Goods and Services Tax (GST) in India was introduced through the 101st Amendment Act of 2016. This constitutional amendment was a crucial step in the implementation of GST, which aimed to create a unified and comprehensive indirect tax system across the country.

Here are some key points related to the 101st Amendment Act and GST:

 

  • The 101st Amendment Act was enacted to amend the Constitution of India to pave the way for the introduction of the Goods and Services Tax.
  • It added a new article, Article 246A, which confers concurrent powers to both the central and state governments to levy and collect GST
  • The amendment led to the creation of the GST Council, a constitutional body consisting of representatives from the central and state governments. The council is responsible for making recommendations on GST rates, exemptions, and other related issues
  • The amendment introduced a dual GST structure, where both the central government and the state governments have the power to levy and collect GST on the supply of goods and services
  • For inter-state transactions, the 101st Amendment Act provides that the central government would levy and collect the Integrated Goods and Services Tax (IGST), which would be a sum total of the central and state GST
  • The amendment also included a provision for compensating states for any revenue loss they might incur due to the implementation of GST for a period of five years
The 101st Amendment Act was a critical legislative step that provided the constitutional framework for the implementation of GST in India. It addressed the need for a unified tax system, simplifying the tax structure and promoting a common market across the country. The subsequent establishment of the GST Council has played a pivotal role in the ongoing management and evolution of the GST system in India
 
4. What are the different types of Goods and Services Tax (GST)?

In India, the Goods and Services Tax (GST) is structured into different tax rates based on the nature of the goods and services. As of my last knowledge update in January 2022, the GST rates are divided into multiple slabs. It's important to note that tax rates may be subject to changes, and new amendments could have been introduced since then. As of my last update, the GST rates are as follows:

  • Nil Rate:

    • Some goods and services are categorized under the nil rate, meaning they attract a 0% GST. This implies that no tax is levied on the supply of these goods or services.
  • 5% Rate:

    • This is a lower rate, applicable to essential goods such as certain food items, medical supplies, and other basic necessities.
  • 12% Rate:

    • Goods and services falling in this category attract a 12% GST rate. Items such as mobile phones, processed foods, and certain services fall under this slab.
  • 18% Rate:

    • A higher rate of 18% is applicable to goods and services such as electronic items, capital goods, and various services.
  • 28% Rate:

    • The highest GST rate of 28% is applied to luxury items, automobiles, and certain goods and services that are considered non-essential or fall into the luxury category.
  • Compensation Cess:

    • In addition to the above rates, some specific goods attract a compensation cess, which is levied to compensate the states for any revenue loss during the transition to GST. This is often applied to items like tobacco and luxury cars.
  • Zero Rate:

    • Certain categories of goods and services may be specified as "zero-rated," which means they are effectively taxed at 0%. This is different from the nil rate, as it allows businesses to claim input tax credit on inputs, capital goods, and input services.
  • Exempt Supplies:

    • Some goods and services may be exempt from GST altogether. This means that they are not subject to any GST, and businesses cannot claim input tax credit on related inputs
 
5.Central GST (CGST), State GST (SGST), Union territory GST (UTGST) and Integrated GST (IGST)
 
 
Subject Central GST (CGST) State GST (SGST) Union Territory GST (UTGST) Integrated GST (IGST)
Levied by Central Government Respective State Governments Union Territory Administrations Central Government (on inter-state transactions)
Applicability On intra-state supplies (within the same state) On intra-state supplies (within the same state) On intra-union territory supplies (within the same union territory) On inter-state supplies (across states or union territories)
Rate Determination Determined by the Central Government Determined by the Respective State Government Determined by the Union Territory Administration IGST rate is a sum of CGST and SGST rates
Revenue Collection Collected by the Central Government Collected by the Respective State Government Collected by the Union Territory Administration Collected by the Central Government (on inter-state transactions)
Utilization of Revenue Shared between Central and State Governments Retained by the Respective State Government Retained by the Union Territory Administration Shared between Central and State Governments
Purpose Part of the dual GST structure, meant to cover central taxes Part of the dual GST structure, meant to cover state taxes Applicable in union territories for intra-territory supplies Applied to regulate and tax inter-state supplies
Input Tax Credit (ITC) ITC available for CGST paid on inputs and services ITC available for SGST paid on inputs and services ITC available for UTGST paid on inputs and services ITC available for both CGST and SGST paid on inputs
Tax Jurisdiction Applies within a particular state Applies within a particular state Applies within a particular union territory Applies to transactions across states and union territories
GSTN Portal for Filing Returns Central GSTN portal State-specific GSTN portals UTGSTN portal Integrated GSTN portal
 
 
6.What are the benefits of Goods and Services Tax (GST) in India?
 
The Goods and Services Tax (GST) in India was implemented with the aim of bringing about significant reforms in the indirect tax structure. Several benefits have been associated with the introduction of GST.
 
Here are some key advantages:
 
  • GST replaced multiple indirect taxes levied by the central and state governments, simplifying the tax structure. This streamlined system reduces the complexity of compliance for businesses
  • GST eliminates the cascading effect of taxes, where taxes are levied on top of other taxes. With a seamless credit mechanism, businesses can claim input tax credit on the taxes paid on their purchases, leading to a more transparent and efficient system
  • GST has facilitated the creation of a common national market by harmonizing tax rates and regulations across states. This has reduced trade barriers and promoted the free flow of goods and services throughout the country
  • The GST system has incorporated technology-driven processes, including electronic filing and real-time reporting, making it harder for businesses to evade taxes. This has contributed to increased tax compliance
  • The input tax credit mechanism under GST benefits manufacturers, as they can claim credits for taxes paid on raw materials and input services. This has a positive impact on the cost of production and enhances the competitiveness of Indian goods in the international market
  • GST brings transparency to the taxation system. The online filing of returns and the availability of transaction-level data make it easier for tax authorities to monitor and track transactions, reducing the scope for corruption
  • GST has replaced a complex system of filing multiple tax returns with a more straightforward mechanism. Businesses now need to file fewer returns, reducing the compliance burden
  • The implementation of GST has contributed to an improvement in the ease of doing business in India. The unified tax system has made it simpler for businesses to operate across states and has reduced the paperwork and bureaucratic hurdles associated with tax compliance
  • GST has led to the harmonization of tax rates across states and union territories, minimizing the tax rate disparities that existed earlier. This creates a more predictable tax environment for businesses
7.Goods and Services Tax (GST)-Issues and Challenge
 
  • Despite the intention to simplify the tax structure, the multi-tiered rate system (0%, 5%, 12%, 18%, and 28%) and the inclusion of cess on certain goods have introduced complexity. The classification of goods and services under different tax slabs can be challenging, leading to disputes and confusion
  • The successful implementation of GST relies heavily on technology. Issues such as technical glitches on the GSTN (Goods and Services Tax Network) portal, especially during the initial phases, have caused difficulties for businesses in filing returns and complying with regulations
  • The compliance requirements for businesses under GST, including multiple returns filing, have been perceived as burdensome. Smaller businesses, in particular, may find it challenging to adapt to the new system and comply with the various provisions
  • The transition from the previous tax regime to GST posed challenges, especially for businesses in terms of understanding the new tax structure, reconfiguring accounting systems, and ensuring a smooth transition of credits from the old tax system to the GST system
  • The classification of certain goods and services into specific tax slabs has been a source of contention. Ambiguities in classification have led to disputes and litigations, with businesses seeking clarity on the applicable tax rates
  • The implementation of GST has increased compliance costs for businesses due to the need for sophisticated IT infrastructure, the hiring of tax professionals, and efforts to ensure accurate reporting and filing
  • Challenges related to availing and matching input tax credits have been reported. Timely matching of credits and resolving discrepancies can be cumbersome, leading to concerns about the seamless flow of credit across the supply chain
  • The anti-profiteering provisions were introduced to ensure that businesses pass on the benefits of reduced tax rates to consumers. However, the implementation of anti-profiteering measures has been criticized for its complexity and potential for disputes
  • The periodic changes in the GST return filing system have created challenges for businesses in adapting their processes. Delays and complexities in return filing can affect working capital management
8.Goods and Services Tax Council (GST Council)
 
The Goods and Services Tax Council (GST Council) is a constitutional body in India that makes recommendations on the Goods and Services Tax (GST). It was established under the Constitution (122nd Amendment) Act, 2016, which introduced the GST in India

The GST Council consists of the following members:

  • The Union Finance Minister, who is the Chairperson of the Council.
  • The Union Minister of State in charge of revenue or any other Minister of State nominated by the Union Government.
  • One Minister from each state, nominated by the Governor of that state.
  • The Chief Secretary of each state, ex-officio.
  • If the President, on the recommendation of the Council, so directs, one representative of each Union territory which has a legislature, to be nominated by the Lieutenant Governor of that Union territory.
  • Three to seven members (other than Ministers) to be nominated by the Union Government, of whom at least one member shall be from the field of economics and another from the field of chartered accountancy, legal affairs or public finance
9. Way forward
 
It's important to note that the composition and structure of the GST Council may evolve over time, and there might have been changes since my last update in January 2022. To obtain the latest and most accurate information about the GST Council and its members, it is recommended to refer to official government sources or recent announcements by the relevant authorities

 

For Prelims: Economic and Social Development and Indian Polity and Governance
For Mains: General Studies II: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein

General Studies III: Inclusive growth and issues arising from it

 
 
Previous Year Questions
 
1.Which of the following are true of the Goods and Services Tax (GST) introduced in India in recent times? (UGC Paper II 2020)
A. It is a destination tax
B. It benefits producing states more
C. It benefits consuming states more
D. It is a progressive taxation
E. It is an umbrella tax to improve ease of doing business
Choose the most appropriate answer from the options given below:
A.B, D and E only
B.A, C and D only
C.A, D and E only
D.A, C and E only
Answer (D)
2.What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’? (UPSC CSE 2017)

1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.

2. It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves.

3. It will enormously increase the growth and size of the economy of India and will enable it to overtake China in the near future.

Select the correct answer using the code given below:

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer (a)
 
Source: Indianexpress
 
 

NATIONAL CRITICAL MINERAL MISSION(NCMM)

 
 
1. Context
 
As the curtain rises on 2026, the global landscape resembles less a cohesive portrait gallery of national foreign policies and more a jagged mosaic of competing interests protruding into one another. The stage reveals the world at an inflection point: Geopolitical turbulence, AI- and tariff-driven economic uncertainty, and climate urgency are all reshaping the global order. 
 
2. What is the National Critical Mineral Mission (NCMM)?
 
  • The National Critical Mineral Mission (NCMM) is a strategic initiative by the Government of India aimed at securing the nation's access to essential minerals that are crucial for modern technologies and industrial development.
  • These minerals, often referred to as "critical minerals," include lithium, cobalt, nickel, rare earth elements, and others that play a vital role in sectors such as renewable energy, electronics, electric mobility, defense, and telecommunications.
  • India’s growing push towards clean energy, electric vehicles, and advanced manufacturing has significantly increased the demand for these minerals. However, many of these resources are either scarce within India or are largely controlled by a few countries, making their supply highly vulnerable to geopolitical and market uncertainties.
  • Recognizing this challenge, the NCMM has been envisioned to ensure a reliable, long-term, and secure supply chain for critical minerals.
  • Under this mission, India seeks to undertake comprehensive mapping and exploration of its own geological resources to identify potential domestic sources of critical minerals.
  • At the same time, the mission aims to foster international partnerships and joint ventures in mineral-rich countries to access these essential resources.
  • In addition to exploration and acquisition, the NCMM focuses on building the capacity for value addition, processing, and recycling of critical minerals within the country, thereby reducing dependence on imports and enhancing self-reliance.
  • The mission also emphasizes sustainability and environmental responsibility in mineral extraction and processing. It integrates research and innovation to develop efficient technologies for extraction, separation, and recycling of these minerals.
  • Overall, the National Critical Mineral Mission reflects India’s strategic vision to secure its mineral resources in line with its developmental goals, green transition agenda, and national security interests
 
3. Significance of National Critical Mineral Mission (NCMM)
 
  • The significance of the National Critical Mineral Mission (NCMM) lies in its strategic role in safeguarding India's economic growth, technological advancement, and national security in an increasingly resource-competitive world.
  • As India transitions toward clean energy, digital infrastructure, and advanced manufacturing, the demand for critical minerals—such as lithium, cobalt, nickel, graphite, and rare earth elements—is expected to surge.
  • These minerals are essential components in electric vehicle batteries, solar panels, wind turbines, electronics, and defense systems. However, India's domestic availability of many of these minerals is either limited or unexplored, and their global supply chains are often concentrated in a few countries, making India vulnerable to external shocks and supply disruptions.
  • The NCMM is significant because it addresses this vulnerability by adopting a multi-pronged approach. It encourages extensive exploration and development of domestic mineral resources, reduces overdependence on imports, and ensures strategic tie-ups with resource-rich countries to secure stable and diversified supply chains.
  • This is particularly important for ensuring energy security and industrial competitiveness in the long term.
  • Moreover, by promoting research, innovation, and recycling of critical minerals, the mission supports the development of indigenous capabilities in mineral processing and value addition.
  • This aligns with the broader goals of "Aatmanirbhar Bharat" (self-reliant India) and strengthens India's position in global supply chains, especially in emerging technologies.
  • From a geopolitical perspective, the NCMM enhances India's strategic autonomy by reducing dependence on any single country for crucial inputs. Environmentally, it also promotes sustainable mining practices and efficient resource utilization, ensuring that the push for critical minerals does not come at the cost of ecological damage.
  • In essence, the National Critical Mineral Mission is a foundational step in preparing India for the demands of the 21st-century economy—securing essential raw materials, supporting innovation and green technologies, and reinforcing national resilience in a rapidly changing global landscape
 
4. What are critical minerals?
 
  • Critical minerals are naturally occurring elements or minerals that are essential for the functioning of modern technologies, national defense, clean energy systems, and advanced manufacturing, but which also face a high risk of supply disruption. Their "criticality" arises from two main factors: their economic importance and the vulnerability of their supply chains.
  • These minerals are vital for a wide range of applications—from renewable energy technologies like solar panels, wind turbines, and batteries, to electronic devices, telecommunications, aerospace, and defense equipment.
  • For instance, lithium, cobalt, and nickel are key components of lithium-ion batteries used in electric vehicles (EVs), while rare earth elements like neodymium and dysprosium are used in permanent magnets for wind turbines and electronics.
  • What makes these minerals "critical" is not just their usage, but the challenges associated with their availability. Many critical minerals are geographically concentrated in a few countries—such as China, the Democratic Republic of Congo, or Australia—making other countries dependent on imports and vulnerable to geopolitical risks, trade restrictions, or supply shocks.
  • In the Indian context, the government has identified several minerals as critical, including lithium, cobalt, graphite, nickel, rare earth elements, and tantalum, among others. These are essential for India's ambitions in renewable energy, electric mobility, and high-tech industries.
  • Thus, critical minerals are at the heart of the 21st-century global economy, and their secure and sustainable supply is increasingly viewed as a matter of national interest and strategic importance
 
5. Components of NCMM
 
  • Increasing Domestic Critical Minerals Production

  • Acquisition of Critical Mineral Assets Abroad

  • Recycling of Critical Minerals

  • Trade and Markets for Critical Minerals

  • Scientific Research and Technological Advancement

  • Human Resource Development

  • Developing Effective Funding, Financing, and Fiscal Incentives

 
6. Usage of Critical minerals
 

Critical minerals play a crucial role in supporting clean energy technologies and various industrial applications. Their relevance spans multiple sectors:

  • Solar Energy
    Elements such as silicon, tellurium, indium, and gallium are essential for manufacturing photovoltaic (PV) cells, which are the core components of solar panels. India's existing solar power capacity of 64 GW significantly relies on these materials.

  • Wind Energy
    Rare earth elements, particularly neodymium and dysprosium, are vital for producing permanent magnets used in wind turbines. With India setting a target to boost its wind energy capacity from the current 42 GW to 140 GW by 2030, a dependable supply of these minerals is critical.

  • Electric Vehicles (EVs)
    Key minerals like lithium, cobalt, and nickel are integral to the production of lithium-ion batteries, which power electric vehicles. India’s National Electric Mobility Mission Plan (NEMMP) envisions the adoption of 6 to 7 million EVs by 2024, further intensifying the demand for these critical materials.

  • Energy Storage
    Advanced energy storage systems, particularly those based on lithium-ion technology, require substantial amounts of lithium, nickel, and cobalt to function effectively.

 
 
7. Way Forward
 
India aims to reduce the emissions intensity of its GDP by 45% by 2030 (from 2005 levels), achieve 50% of its electric power capacity from non-fossil sources by 2030, and reach net-zero emissions by 2070. To achieve these climate goals, the National Critical Mineral Mission (NCMM) plays a vital role by building a resilient and self-reliant ecosystem for critical minerals. The mission focuses on boosting domestic production, encouraging private sector participation, strengthening international partnerships, and streamlining regulations to ensure a steady supply of minerals essential for clean energy technologies
 
For Prelims: National Critical Mineral Mission (NCMM), Critical Minerals, 
Usage of Critical minerals
 
For Mains: GS III - Environment & Ecology
 
 
 
For Prelims: Critical minerals, Ministry of Mines, carbon emissions,  cleaner energy,  lithium, cobalt, nickel, graphite, tin, copper, Selenium, Cadmium, Centre of Excellence on critical minerals, Australia's CSIRO, Geological Survey of India, 
 
For Mains: 
1. What are critical minerals? Discuss their significance for a country's economic development and national security. Explain how the identification of critical minerals helps in reducing import dependency and ensuring resource security. (250 Words)
 
 
Previous Year Questions
 
1. With reference to the mineral resources of India, consider the following pairs: (UPSC 2010)
Mineral                         90%Natural sources in
1. Copper                       Jharkhand
2. Nickel                        Orissa
3. Tungsten                    Kerala
Which of the pairs given above is/are correctly matched?  
A. 1 and 2 only            B. 2 only             C. 1 and 3 only            D. 1, 2 and 3
 
Answer: B
 
2. Recently, there has been a concern over the short supply of a group of elements called 'rare earth metals.' Why? (UPSC 2012)
1. China, which is the largest producer of these elements, has imposed some restrictions on their export.
2. Other than China, Australia, Canada and Chile, these elements are not found in any country. 3. Rare earth metals are essential for the manufacture of various kinds of electronic items and there is a growing demand for these elements.
Which of the statements given above is/are correct?
A. 1 only              B. 2 and 3 only           C. 1 and 3 only          D.  1, 2 and 3
 
Answer: C
 
3. In India, what is the role of the Coal Controller's Organization (CCO)? (UPSC 2022)
1. CCO is the major source of Coal Statistics in Government of India.
2. It monitors progress of development of Captive Coal/Lignite blocks.
3. It hears any objection to the Government's notification relating to acquisition of coal-bearing areas.
4. It ensures that coal mining companies deliver the coal to end users in the prescribed time. Select the correct answer using the code given below:
A. 1, 2 and 3            B. 3 and 4 only           C. 1 and 2 only          D. 1, 2 and 4
 
Answer: A
 
4. Which of the following statements best describes the term 'Social Cost of Carbon'? It is a measure, in monetary value, of the (UPSC 2020) 
A. long-term damage done by a tonne of CO2 emission in a given year.
B. requirement of fossil fuels for a country to provide goods and services to its citizens, based on the burning of those fuels.
C. efforts put in by a climate refugee to adapt to live in a new place.
D. contribution of an individual person to the carbon footprint on the planet Earth.
 
Answer: A
 
5. Direction: It consists of two statements, one labelled as ‘Statement (I)’ and the others as ‘Statement (II)’. You are to examine these two statements carefully and select the answer using the codes given below: (UPSC ESE 2018)
Statement (I): Green energy refers to one which does not harm the ecosystem of planet earth. Statement (II): All renewable energy is green energy.
A. Both Statement (I) and Statement (II) individually true and Statement (II) is the correct explanation of Statement (I)
B. Both statement (I) and Statement (II) are individually true, but Statement (II) is not the correct explanation of Statement (I)
C. Statement (I) is true, but Statement (II) is false
D. Statement (I) is false, but Statement (II) is true
 
Answer: C
 
6. Which type of battery is used in the recently launched world's first fully electric cargo ship by change? (Delhi Police Constable 2017)
A.  Lead Acid        B. Manganese        C. Lithium ion        D. Nickel metal hydride
 
Answer: C
 
7. White gold is an alloy of (UPSC CAPF 2022) 
A. gold, nickel and palladium
B. gold, cobalt and palladium
C. gold, titanium and platinum
D. gold, magnesium and palladium
 
Answer: A
 
8. Graphene is frequently in news recently. What is its importance? (UPSC 2012) 
1. It is a two-dimensional material and has good electrical conductivity.
2. It is one of the thinnest but strongest materials tested so far.
3. It is entirely made of silicon and has high optical transparency.
4. It can be used as 'conducting electrodes' required for touch screens, LCDs and organic LEDs. Which of the statements given above are correct?
A. 1 and 2 only          B. 3 and 4 only         C.  1, 2 and 4 only          D.  1, 2, 3 and 4
 
Answer: C
 
9. Graphite and diamonds are__________. (WBCS Prelims 2020)
 
A. isotopes           B.  isomers             C. isotones           D. allotropes
 
Answer: D
 
10. Consider the following statements: (UPSC 2020)
1. Coal ash contains arsenic, lead and mercury.
2. Coal-fired power plants release sulphur dioxide and oxides of nitrogen into the environment. 3. High ash content is observed in Indian coal.
Which of the statements given above is/are correct?
A. 1 only         B. 2 and 3 only        C.  3 only         D. 1, 2 and 3
 
Answer: D
 
11. Which of the following can be found as pollutants in the drinking water in some parts of India? (UPSC 2013)
1. Arsenic
2. Sorbitol
3. Fluoride
4. Formaldehyde
5. Uranium
Select the correct answer using the codes given below.
A. 1 and 3 only           B. 2, 4 and 5 only          C. 1, 3 and 5 only           D.  1, 2, 3, 4 and 5
 
Answer: C
 
12. In the context of solving pollution problems, what is/are the advantage/advantages of the bioremediation technique? (UPSC 2017)
1. It is a technique for cleaning up pollution by enhancing the same biodegradation process that occurs in nature.
2. Any contaminant with heavy metals such as cadmium and lead can be readily and completely treated by bioremediation using microorganisms.
3. Genetic engineering can be used to create microorganisms specifically designed for bioremediation.
Select the correct answer using the code given below: 
A. 1 only         B.  2 and 3 only          C.  1 and 3 only             D. 1, 2 and 3
 
Answer: C
 
13. Due to improper/indiscriminate disposal of old and used computers or their parts, which of the following are released into the environment as e-waste? (UPSC 2013) 
1. Beryllium
2. Cadmium
3. Chromium
4. Heptachlor
5. Mercury
6. Lead
7. Plutonium
Select the correct answer using the codes given below. 
A. 1, 3, 4, 6 and 7 only           B. 1, 2, 3, 5 and 6 only         
C. 2, 4, 5 and 7 only               D. 1, 2, 3, 4, 5, 6 and 7
 
Answer: B
 
14. When was the Geological Survey of India (GSI) of India founded? (UPRVUNL Staff Nurse 2021)
A. 1851             B. 1951            C. 1871              D. 1931
 
Answer: A
 
Source: PIB

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