INDEX OF INDUSTRIAL PRODUCTION (IIP)
1. Context
Growth in the Index of Industrial Production (IIP) slowed from a 26-month high of 7.8% in December 2025, which was later revised to 8%. Manufacturing growth slowed to 4.8% in January from 8.4% in December 2025 and 5.8% in January 2025.
2. About the Index of Industrial Production (IIP)
- The Index of Industrial Production (IIP) is a macroeconomic indicator that measures the changes in the volume of production of a basket of industrial goods over some time.
- It is a composite index that reflects the performance of the industrial sector of an economy.
- The IIP is compiled and released by the Central Statistical Organisation (CSO) in India.
- The IIP is calculated using a Laspeyres index formula, which means that the weights assigned to different industries are based on their relative importance in a base year. The current base year for the IIP is 2011-12.
- The eight core sector industries represent about 40% of the weight of items that are included in the IIP.
- The eight core industries are Refinery Products, Electricity, Steel, Coal, Crude Oil, Natural Gas, Cement and Fertilizers.
- It covers 407 item groups included into 3 categories viz. Manufacturing, Mining and Electricity.
- The IIP is a useful tool for assessing the health of the industrial sector and the overall economy.
- It is used by policymakers, businesses, and investors to track trends in industrial production and make informed decisions.
3. Significance of IIP
The IIP is a significant economic indicator that provides insights into the following aspects
- The IIP reflects the growth or decline of the industrial sector, which is a major contributor to overall economic growth.
- The IIP measures the level of industrial activity, indicating the production volume of various industries.
- The IIP serves as a guide for policymakers to assess the effectiveness of economic policies and make informed decisions.
- Businesses use the IIP to assess market conditions, make production plans, and evaluate investment opportunities.
- The IIP influences investor sentiment as it reflects the overall health of the industrial sector.
4. Service Sector and IIP
- The IIP does not include the service sector. It focuses on the production of goods in the industrial sector, such as manufacturing, mining, and electricity.
- The service sector is measured by a separate index, the Index of Services Production (ISP).
- The IIP data is released monthly by the Central Statistical Organisation (CSO) in India.
- The data is released with a lag of six weeks, allowing for the collection and compilation of information from various industries.
5. Users of IIP Data
The IIP data is used by a wide range of stakeholders, including:
- Government agencies and central banks use the IIP to assess economic conditions and formulate policies.
- Companies use the IIP to evaluate market trends, make production decisions, and assess investment opportunities.
- Investors use the IIP to gauge the health of the industrial sector and make investment decisions.
- Economic analysts and researchers use the IIP to study economic trends and develop forecasts.
- The IIP is widely reported in the media and is of interest to the general public as an indicator of economic performance.
6. Manufacturing Drives Industrial Production Growth
- Factory output gained on the back of a 9.3 per cent increase in manufacturing, which accounts for 77.6 per cent of the weight of the IIP (Index of Industrial Production).
- Manufacturing output had grown by 5 per cent in July and had contracted by 0.5 per cent in August 2022.
- In absolute terms, it improved to 143.5 in August from 141.8 in July and 131.3 in the year-ago period.
- As per the IIP data, seven of the 23 sectors in manufacturing registered a contraction in August, with furniture, apparel, and computer and electronics among the significant non-performers.
- Among the performing sectors, fabricated metal products, electrical equipment and basic metals fared better.
- Garments and chemicals witnessed negative growth. This can be attributed to lower growth in exports as these two are export-dependent.
- The electronics industry also witnessed negative growth, which again can be linked to existing high stocks and lower export demand.
- In terms of the use-based industries, consumer durables output returned to positive territory for the second time this fiscal with 5.7 per cent growth in August, reflecting a pickup in consumption demand.
- However, it came on the back of a 4.4 per cent contraction in consumer durables output in the year-ago period.
- Primary, infrastructure/ construction, and capital goods recorded double-digit growth rates in August at 12.4 per cent, 14.9 per cent and 12.6 per cent, respectively.
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For Prelims: The Index of Industrial Production (IIP), Central Statistical Organisation,
For Mains:
1. Discuss the significance of the Index of Industrial Production (IIP) as an economic indicator and its role in assessing the health of the industrial sector and the overall economy. (250 Words)
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| Previous Year Questions
1. In India, in the overall Index of Industrial Production, the Indices of Eight Core Industries have a combined weight of 37.90%. Which of the following are among those Eight Core Industries? (UPSC CSE 2012)
1. Cement
2. Fertilizers
3. Natural gas
4. Refinery products
5. Textiles
Select the correct answer using the codes given below:
A. 1 and 5 only B. 2, 3 and 4 only C. 1, 2, 3 and 4 only D. 1, 2, 3, 4 and 5
Answer: C
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Source: indianexpress
STRAIT OF HORMUZ
1. Context
The ever-widening conflict involving Iran, US and Israel has severely disrupted oil and gas flows through the Strait of Hormuz — a critical artery for global energy supply.
2. What is the Strait of Hormuz?
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The Strait of Hormuz is a strategically significant and narrow maritime passage situated between Iran and Oman, serving as a link between the Persian Gulf, the Gulf of Oman, and the Arabian Sea. The U.S. Energy Information Administration (EIA) has labeled it as the world’s most vital oil transit chokepoint, through which nearly 20% of global liquid petroleum fuels and a substantial portion of LNG trade pass. In May, more than 45% of India’s crude oil imports were estimated to have transited through this strait. Given that India is the third-largest consumer of crude oil globally and imports over 85% of its oil needs, the strait plays a crucial role in its energy security.
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Data from the commodity analytics firm Kpler indicates that, as of June, India has been importing over 2.2 million barrels per day (bpd) of crude oil from Russia, which constitutes more than 41% of its total oil imports.
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While oil imports from the U.S. have shown a steady rise, supplies from West Asian nations such as Iraq, Saudi Arabia, the UAE, and Kuwait have remained relatively consistent. Many of these shipments were likely planned prior to the recent escalation in tensions between Israel and Iran, and therefore, may not reflect the impact of the current geopolitical developments.
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Over the past two to three years, India has notably adjusted its oil import strategy. Russia has emerged as India’s top crude supplier, overtaking traditional exporters from West Asia. Importantly, Russian oil bypasses the Strait of Hormuz, as it is mainly transported via alternative sea routes like the Suez Canal and Red Sea, and sometimes through the Cape of Good Hope or Pacific Ocean routes.
3. Why is the Strait of Hormuz strategically important for India?
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India’s current oil procurement approach already demonstrates a diversified and risk-mitigated strategy, especially in light of uncertainties in West Asian oil routes, with Russian crude now making up the largest share of India’s import basket.
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After recent U.S. air strikes targeting Iranian nuclear sites, Iran’s parliament passed a resolution on Sunday advocating the closure of the Strait of Hormuz, a vital corridor for global oil transportation. The final decision on this move now lies with Iran’s Supreme National Security Council.
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Although Iran has repeatedly issued threats in the past to shut the strait, it has never acted on them. Even in the present context, industry analysts consider the likelihood of an actual blockade to be low. Nevertheless, the increased risk perception surrounding the potential closure is expected to trigger global alarm, including in India, by raising concerns over the security of oil and gas supplies and potentially driving up global energy prices.
4.How does the Israel-Iran conflict pose a threat to global oil and gas flows?
- The Israel-Iran conflict poses a significant threat to global oil and gas flows due to the geopolitical sensitivity and strategic location of the region. At the heart of this issue lies the Strait of Hormuz—a narrow but crucial maritime passage through which nearly 20% of the world’s petroleum and a substantial share of liquefied natural gas (LNG) are transported.
- Iran borders this strait and has, over the years, repeatedly threatened to block it during periods of heightened tension, including in response to military actions or sanctions.
- When hostilities between Israel and Iran escalate—such as through air strikes, proxy conflicts, or cyber warfare—it increases the likelihood of retaliation from Iran that could involve disrupting maritime traffic in the Strait of Hormuz.
- Even if Iran does not fully close the strait, the mere threat or perception of such an action is enough to cause volatility in global energy markets. Tanker insurance rates rise, shipping routes are reconsidered, and countries heavily dependent on oil imports, like India, become increasingly vulnerable to supply disruptions and price shocks.
- Furthermore, any military conflict in this region risks damaging key infrastructure such as refineries, pipelines, or export terminals in the broader West Asian region.
- This would constrain oil production and distribution, affecting both the availability and price of crude oil and gas worldwide. Global markets respond quickly to these risks, often resulting in immediate spikes in prices due to concerns over supply security.
- In summary, the Israel-Iran conflict amplifies the risk to global oil and gas flows by potentially destabilizing a region that is central to global energy supply chains. It heightens fears of supply disruptions, increases market speculation, and threatens the economic stability of energy-importing countries, making it a matter of both geopolitical and economic concern
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For Prelims: Strait of Hormuz, Persian Gulf, Energy Information Administration (EIA), liquefied natural gas (LNG)
For Mains: General Studies II: Effect of policies and politics of developed and developing countries on India’s interests.
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Previous Year Questions
1.Which one of the following straits is nearest to the International Date Line? (UPSC CSE 2008) (a) Malacca Strait (b) Bering Strait (c) Strait of Florida (d) Strait of Gibraltar Answer (b) The International Date Line (IDL) roughly follows the 180° longitude, which lies in the Pacific Ocean, deviating slightly to accommodate international boundaries. The Bering Strait lies between Russia and Alaska, and it is very close to the 180° meridian, making it the closest strait to the International Date Line. Here's why the other options are incorrect:
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Source: Indianexpress
GROSS DOMESTIC PRODUCT (GDP)
1. Context
The Ministry of Statistics and Programme Implementation’s (MoSPI) revamp of the GDP data has thrown up several interesting changes from what we previously thought of the Indian economy, chief among them being that growth in 2023-24 is now not as high as estimated earlier (9.2% in the old series, 7.2% in the new).
2. Gross Domestic Product (GDP)
Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. It is often used as a measure of a country's economic health
GDP provides insight into the overall economic health of a nation and is often used for comparing the economic output of different countries.
There are three primary ways to calculate GDP:
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Production Approach (GDP by Production): This approach calculates GDP by adding up the value-added at each stage of production. It involves summing up the value of all final goods and services produced in an economy.
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Income Approach (GDP by Income): This approach calculates GDP by summing up all the incomes earned in an economy, including wages, rents, interests, and profits. The idea is that all the income generated in an economy must ultimately be spent on purchasing goods and services.
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Expenditure Approach (GDP by Expenditure): This approach calculates GDP by summing up all the expenditures made on final goods and services. It includes consumption by households, investments by businesses, government spending, and net exports (exports minus imports).
3. Measuring GDP
GDP can be measured in three different ways:
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Nominal GDP: This is the raw GDP figure without adjusting for inflation. It reflects the total value of goods and services produced at current prices.
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Real GDP: Real GDP adjusts the nominal GDP for inflation, allowing for a more accurate comparison of economic performance over time. It represents the value of goods and services produced using constant prices from a specific base year.
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GDP per capita: This is the GDP divided by the population of a country. It provides a per-person measure of economic output and can be useful for comparing the relative economic well-being of different countries.
The GDP growth rate is the percentage change in the GDP from one year to the next. A positive GDP growth rate indicates that the economy is growing, while a negative GDP growth rate indicates that the economy is shrinking
The GDP is a useful measure of economic health, but it has some limitations. For example, it does not take into account the distribution of income in an economy. It also does not take into account the quality of goods and services produced.
Despite its limitations, the GDP is a widely used measure of economic health. It is used by economists, policymakers, and businesses to track the performance of an economy and to make decisions about economic policy
4. Gross Value Added (GVA)
Gross Value Added (GVA) is a closely related concept to Gross Domestic Product (GDP) and is used to measure the economic value generated by various economic activities within a country. GVA represents the value of goods and services produced in an economy minus the value of inputs (such as raw materials and intermediate goods) used in production. It's a way to measure the contribution of each individual sector or industry to the overall economy.
GVA can be calculated using the production approach, similar to one of the methods used to calculate GDP. The formula for calculating GVA is as follows:
GVA = Output Value - Intermediate Consumption
Where:
- Output Value: The total value of goods and services produced by an industry or sector.
- Intermediate Consumption: The value of inputs used in the production process, including raw materials, energy, and other intermediate goods.
5. GDP vs GNP
Gross Domestic Product (GDP) and Gross National Product (GNP) are both important economic indicators used to measure the size and health of an economy, but they focus on slightly different aspects of economic activity and include different factors. Here are the key differences between GDP and GNP:
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Definition and Scope:
- GDP: GDP measures the total value of all goods and services produced within a country's borders, regardless of whether the production is done by domestic or foreign entities. It only considers economic activities that take place within the country.
- GNP: GNP measures the total value of all goods and services produced by a country's residents, whether they are located within the country's borders or abroad. It takes into account the production of residents, both domestically and internationally.
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Foreign Income and Payments:
- GDP: GDP does not consider the income earned by residents of a country from their economic activities abroad, nor does it account for payments made to foreigners working within the country.
- GNP: GNP includes the income earned by a country's residents from their investments and activities abroad, minus the income earned by foreign residents from their investments within the country.
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Net Factor Income from Abroad:
- GDP: GDP does not account for net factor income from abroad, which is the difference between income earned by domestic residents abroad and income earned by foreign residents domestically.
- GNP: GNP includes net factor income from abroad as part of its calculation.
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Foreign Direct Investment:
- GDP: GDP does not directly consider foreign direct investment (FDI) flowing into or out of a country.
- GNP: GNP considers the impact of FDI on the income of a country's residents, both from investments made within the country and from investments made by residents abroad.
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Measurement Approach:
- GDP: GDP can be calculated using three different approaches: production, income, and expenditure approaches.
- GNP: GNP is primarily calculated using the income approach, as it focuses on the income earned by residents from their economic activities.
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For Prelims: GDP, GVA, FDI, GNP
For Mains: 1.Discuss the recent trends and challenges in India's GDP growth
2.Examine the role of the service sector in India's GDP growth
3.Compare and contrast the growth trajectories of India's GDP and GNP
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Previous Year Questions
1.With reference to Indian economy, consider the following statements: (UPSC CSE, 2015)
1. The rate of growth of Real Gross Domestic Product has steadily increased in the last decade. 2. The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Answer (b)
2.A decrease in tax to GDP ratio of a country indicates which of the following? (UPSC CSE, 2015) 1. Slowing economic growth rate 2. Less equitable distribution of national income 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 (a)
Previous year UPSC Mains Question Covering similar theme: Define potential GDP and explain its determinants. What are the factors that have been inhibiting India from realizing its potential GDP? (UPSC CSE GS3, 2020) Explain the difference between computing methodology of India’s Gross Domestic Product (GDP) before the year 2015 and after the year 2015. (UPSC CSE GS3, 2021) |
Source: indianexpress
SEMICONDUCTOR
1. Context
Prime Minister Narendra Modi on Saturday inaugurated the country’s first semiconductor plant at Sanand in Gujarat, and said a “loud and clear” message has gone out to the world that “India is capable, India is competitive and India is committed.”
2. What are Semiconductors?
Semiconductors constitute a unique category of materials exhibiting electrical characteristics that blend those of conductors and insulators. Analogous to a faucet regulating water flow, semiconductors offer precise control over electric currents.
Among semiconductors, the transistor holds paramount importance. In the early stages of modern electronics, integrated circuits featured a mere four transistors, enabling basic arithmetic operations. Presently, single chips accommodate billions of transistors.
The intricate process of integrating numerous transistors onto a minuscule chip, comparable in size to a fingernail, demands meticulous precision akin to dividing a strand of human hair into a thousand segments, each with specific width, and further subdividing each segment into a hundred parts. Consequently, semiconductor fabrication necessitates cutting-edge technological and scientific expertise
3. How are Semiconductors made?
- The process commences with an engineer meticulously selecting a silicon wafer as the base upon which the semiconductor will be constructed.
- A dedicated team subjects the silicon, derived from sand, to an elaborate purification procedure to isolate it from other substances, resulting in an ultra-pure wafer with impurity levels as minimal as a few parts per billion.
- This proportion is akin to an error margin of merely one centimeter when measuring the Earth's diameter.
- Subsequently, the photolithography process ensues—a pivotal stage wherein the circuit pattern is etched onto the wafer.
- The wafer is coated with a light-sensitive substance known as a photoresist. A mask is then positioned in front of the wafer, and light is directed onto it. The mask features small apertures corresponding to the circuit pattern.
- Light passes through these apertures, eroding the underlying sections of the photoresist. Consequently, the photoresist on the wafer adopts the configuration of the transistor circuits.
- After photolithography, engineers employ chemical and/or physical methods to eliminate the unetched portions of the photoresist, leaving the circuit's framework on the silicon substrate intact.
- Next, they introduce impurities into specific areas of the semiconductor—a process known as doping—to modify its electrical properties deliberately.
- Thin layers of materials such as metals or insulators are then deposited onto the wafer's surface to establish electrical connections or insulate components.
- Subsequently, the resultant product undergoes packaging—individual chips are segregated, encapsulated, and subjected to testing to ensure functionality and reliability—before integration into the electronic device
4. Semiconductor Fabrication
- Every stage of semiconductor production necessitates exceptionally precise techniques and draws upon a variety of scientific principles. For instance, in crafting cutting-edge transistors, the photolithography process demands a light source emitting electromagnetic radiation with a wavelength of 13.5 nm.
- To achieve this, the High NA EUV machine developed by the Dutch company ASML employs a unique method: a cannon propels a 50-micrometer droplet of liquid tin at 300 km/hr through a vacuum chamber, where laser beams impart sufficient energy to generate a plasma emitting the required wavelength of radiation.
- Semiconductor manufacturing is characterized by specialization, resulting in an oligopoly dominated by companies specializing in specific areas. ASML, originally a spin-off of Philips, holds a monopoly on photolithography machines essential for cutting-edge semiconductor production worldwide.
- In the realm of software tools for circuit design, American firms Synopsys and Cadence reign supreme, while Japan's Shin Etsu leads in silicon wafer production.
- Taiwan's TSMC leads the market in fabrication, utilizing equipment from U.S.-based Applied Materials and Lam Research. The bulk of intellectual property rights are owned by the British company Arm.
- India plays a significant role in chip design, particularly centered in Bengaluru. However, ownership of most intellectual property rights necessary for executing these designs lies with parent companies or with Arm, relegating India to a consumer rather than a proprietor of these products.
- This dynamic mirrors the business model of McDonald's: while India may host numerous McDonald's outlets, the recipe and supply chain are controlled by a parent company headquartered elsewhere
5. Benefits of Semiconductors
- Smartphones and computers epitomize the apex of semiconductor technology, yet the impact of semiconductors permeates nearly every aspect of daily life. These components power not only the sophisticated functions of electronic devices but also enable the operation of "smart" air conditioners for temperature regulation and facilitate space telescopes in capturing both captivating and scientifically significant images from the depths of the universe, among various other applications.
- The solutions to many of the pivotal challenges of the 21st century, encompassing realms such as artificial intelligence, electric vehicles, space exploration, robotics, personalized healthcare, and environmental monitoring, hinge upon a reliable supply of advanced semiconductors. This underscores their critical importance for humanity's survival and pursuit of fairness, sustainability, and justice.
- The establishments dedicated to semiconductor technology not only foster innovation and generate high-income employment opportunities but also cultivate the potential for startups specializing in cutting-edge technologies.
- Furthermore, they contribute to and benefit from advancements in fields such as materials science, computer engineering, big data, optics, chemical engineering, and chip design, among others.
- Given their significance in sectors like defense and automotive industries, semiconductors have become focal points of geopolitical interest. Countries vie to establish semiconductor fabrication facilities domestically, offering various incentives to attract industry leaders. Notably, the United States has imposed sanctions on Chinese technology companies, including bans on acquiring advanced ASML equipment and high-end design software, citing similar reasons.
- In response, China has intensified efforts to bolster its domestic semiconductor production capabilities to meet internal demand.
- India, on the other hand, has been leveraging its expertise in design to establish semiconductor manufacturing plants domestically. It is hoped that this strategic initiative, coupled with the potential for continued innovation and collaboration, will enhance India's position in the semiconductor industry
6. Way Forward
While the physical realm of human activity contains an array of languages, the digital realm is founded on just one fundamental binary language: the 1s and 0s, also called the bits of data. Computers represent these bits as electrical signals and this forms the foundation of modern computing, communication, social media, robotics, and artificial intelligence. The 0s and 1s constantly shape the way we interact with technology and with each other — and the beating heart of this binary revolution is the semiconductor device
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For Prelims: Semiconductor, intellectual property rights, India Semiconductor Mission, Semicon India Program
For Mains:
1. Discuss the potential of India's semiconductor industry to reduce the country's dependence on imported chips and contribute to the "Make in India" initiative. (250 Words)
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Source: The Hindu
LANGUAGE LEARNING MODEL (LLM)
1. Context
At the AI Impact Summit, the Bengaluru-based startup Sarvam AI released two Large Language Models (LLMs), which are the foundation for AI systems that power services like Google’s Gemini and OpenAI’s ChatGPT. The two models were trained on 35 billion and 105 billion parameters respectively, and were less power- and compute-intensive than comparable models, while demonstrating improvements over other models in Indian languages, Pratyush Kumar, a Sarvam co-founder said.
2. What are Language Learning Models (LLM)?
- Language Learning Models, more commonly referred to as Large Language Models (LLMs), are a type of artificial intelligence system designed to understand and generate human language.
- They are built to read text, identify patterns in how language is used, and then produce responses that are coherent and contextually relevant. The term “large” refers to the enormous amount of data they are trained on, as well as the vast number of parameters—mathematical values—that help them process and predict language.
- At their core, these models work by learning from examples. During training, they are exposed to massive collections of text drawn from books, articles, research papers, and other publicly available material.
- Instead of memorizing specific answers, they learn the statistical relationships between words. In simple terms, they learn how likely one word is to follow another in a given context. Over time, this ability to predict the next word in a sentence becomes highly refined, allowing the model to generate complete paragraphs, essays, summaries, translations, or even computer code.
- Modern language models are typically built using a neural network architecture known as the Transformer. This design allows the system to pay attention to the relationships between words in a sentence, even if those words are far apart.
- Because of this, the model can understand context better than earlier language-processing systems. For example, it can distinguish between different meanings of the same word depending on how it is used in a sentence, and it can maintain coherence across longer passages of text.
- Although these models can appear intelligent, they do not truly “understand” language in the human sense. They do not possess consciousness, personal experiences, or emotions.
- Their responses are generated based on learned patterns rather than genuine comprehension. This means they can sometimes produce incorrect or misleading information, especially if the training data contained errors or biases.
- Language Learning Models have become important because they change the way humans interact with technology. Instead of using rigid commands or technical instructions, users can communicate naturally in everyday language.
- This has applications in education, business, governance, research, customer service, and many other fields. By enabling machines to process and generate language fluently, these models act as powerful tools that assist with writing, problem-solving, and information analysis.
3.How are LLM are Trained ?
- Large Language Models are developed and deployed using clusters of high-performance Graphics Processing Units (GPUs). The expense of procuring these GPUs, combined with the substantial electricity required to operate them for extended training periods, often amounts to several million dollars.
- Equally critical to this process is access to vast volumes of data, much of which is sourced from the internet. However, online content is far more abundant in English, European languages, and East Asian languages such as Korean and Japanese, compared to most Indian languages.
- This imbalance creates a dual difficulty for building LLMs within India using domestic funding.
- First, the limited availability of high-quality data in Indian languages means that many models either deliver weaker performance in these languages or consume additional computational resources—often translating user inputs into English for processing and then translating responses back into the original language.
- Although machine translation for Indian languages has improved significantly and is frequently relied upon to enhance output quality, this approach is not always optimal.
- Second, financial constraints present another barrier. Developing and training large-scale language models requires significant capital investment, which can be difficult for Indian companies to justify, particularly in the absence of clear and immediate commercial applications tailored to local markets.
- Dependence on translation layers also poses practical challenges for developers aiming to promote indigenous LLMs.
- For instance, locally developed models such as Sarvam’s 35-billion-parameter system—demonstrated at a summit research symposium and adapted for use on feature phones—may face limitations if their performance in Indian languages is not robust. Such shortcomings can affect user experience, adoption rates, and overall effectiveness in real-world applications
4. Government Initiatives
- Under the IndiaAI Mission, the government has supported domestic AI development by facilitating large-scale computing infrastructure within the country.
- More than 36,000 GPUs have been deployed across data centres run by Indian companies such as Yotta, enabling researchers and startups to undertake model training and inference at concessional rates.
- As part of this initiative, Sarvam was provided access to 4,096 GPUs from a shared national compute facility, with government support for this effort estimated at nearly ₹100 crore.
- The total infrastructure cost of this GPU cluster is reported to be around ₹246 crore, though the resources are expected to remain available for broader use beyond a single project.
- The Ministry of Electronics and Information Technology has promoted indigenous LLM development for multiple strategic reasons. A central concern is that models created abroad may lack both the incentive and the contextual depth needed to effectively support India’s diverse linguistic landscape.
- Additionally, building domestic capacity to train and deploy large language models is viewed as essential for strengthening India’s broader artificial intelligence ecosystem and nurturing homegrown expertise.
- In this context, Sarvam’s unveiling of its two language models marks an important milestone in India’s efforts to build a high-performance yet cost-efficient LLM. The government appears keen to replicate the kind of cost innovation seen when China’s DeepSeek introduced its R1 model, which was rapidly adopted across the AI sector for reducing training and inference expenses without sacrificing performance quality. Policymakers hope to encourage a similar competitive advantage in India
5. Way Forward
An important advancement for AI systems designed to operate efficiently in local environments has been the development of the Mixture of Experts (MoE) architecture. Early large language models were built with hundreds of billions—or even more than a trillion—parameters, and during inference they generally relied on activating the entire network of parameters to generate responses. This approach significantly increased computational costs and made each query resource-intensive.
In contrast, the MoE framework improves efficiency by engaging only a selected subset of the model’s parameters for any given task. By activating just a portion of the overall network rather than the whole system, MoE-based models can process requests more quickly while reducing computational load and operational expenses
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For Prelims: Current events of national and international importance
For Mains: GS-III: Awareness in the fields of IT, Space, Computers, robotics, nano-technology, bio-technology and issues relating to intellectual property rights.
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Previous Year Questions
1.With the present state of development, Artificial Intelligence can effectively do which of the following? (UPSC CSE 2020) 1. Bring down electricity consumption in industrial units 2. Create meaningful short stories and songs 3. Disease diagnosis 4. Text-to-Speech Conversion 5. Wireless transmission of electrical energy Select the correct answer using the code given below: (a) 1, 2, 3 and 5 only (b) 1, 3 and 4 only (c) 2, 4 and 5 only (d) 1, 2, 3, 4 and 5 Answer (b) (b) 1, 3, and 4 only Explanation:
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Source: The Hindu
CRBON CAPTURE AND UTILISATION (CCU)
1. Context
Carbon Capture and Utilisation (CCU) refers to a set of technologies that capture carbon dioxide emissions from industrial sources or directly from the air and convert them into useful products. This process removes carbon from the atmosphere and puts it into the economy as inputs for fuels, chemicals, building materials, or polymers. Unlike carbon capture and storage, where captured CO₂ is permanently stored underground rather than reused, CCU uses up the captured carbon.
2. What is Carbon Capture and Utilisation (CCU)?
- Carbon Capture and Utilisation (CCU) is an approach to climate mitigation that focuses on treating carbon dioxide not merely as a waste product, but as a resource.
- In the context of rising global temperatures and increasing industrial emissions, CCU represents an attempt to balance economic development with environmental responsibility.
- When fossil fuels such as coal, oil, or natural gas are burned in power plants or used in industries like cement and steel manufacturing, large quantities of carbon dioxide (CO₂) are released into the atmosphere.
- This CO₂ traps heat and contributes to global warming. Carbon Capture and Utilisation seeks to intervene in this process. Instead of allowing the carbon dioxide to escape into the air, it is captured at the source of emission through specialized technologies.
- These technologies separate CO₂ from other gases produced during combustion or industrial processes.
- Once captured, the carbon dioxide is compressed and transported to facilities where it can be put to productive use. This is the key difference between CCU and Carbon Capture and Storage (CCS).
- While CCS focuses on storing the captured carbon dioxide deep underground in geological formations to prevent its release, CCU aims to convert the captured CO₂ into valuable products.
- The utilisation aspect of CCU can take many forms. Carbon dioxide can be used to manufacture chemicals such as methanol and urea, which are widely used in fertilisers and industry.
- It can also be converted into synthetic fuels, building materials like carbon-infused concrete, and even used in the production of carbonated beverages. In some cases, CO₂ is injected into oil fields to enhance oil recovery.
- By turning emissions into economically useful goods, CCU attempts to create a circular carbon economy, where carbon is reused instead of continuously extracted and emitted.
- The importance of CCU becomes particularly relevant for countries that rely heavily on fossil fuels for energy and industrial growth.
- For example, India, which has significant coal-based power generation, is exploring CCU as part of its broader climate strategy, with policy discussions supported by institutions such as NITI Aayog. For developing economies, CCU offers a transitional pathway: it allows industries to continue operating while reducing their carbon footprint.
- However, CCU is not without challenges. Capturing carbon dioxide requires substantial energy and investment. In some cases, the process itself can be energy-intensive, which may reduce the overall environmental benefit unless powered by renewable energy.
- Moreover, the long-term climate impact depends on how permanently the carbon is locked into products. If CO₂ is used to produce fuels that are later burned, it eventually returns to the atmosphere.
3. Why does India need CCU?
- India needs Carbon Capture and Utilisation (CCU) because of the unique structure of its economy, energy system, and development priorities.
- Unlike many developed countries that have already industrialised and are now transitioning away from fossil fuels, India is still in a growth phase where energy demand, infrastructure expansion, and industrial production are rapidly increasing.
- This creates a complex challenge: how to grow economically while reducing carbon emissions.
- One of the primary reasons India needs CCU is its continued dependence on coal. A large portion of India’s electricity generation comes from coal-based thermal power plants.
- While renewable energy capacity is expanding significantly, coal remains critical for ensuring energy security and meeting base-load power requirements. Completely phasing out coal in the short term is neither economically nor socially feasible.
- CCU provides a transitional solution by capturing carbon emissions from these plants and converting them into useful products, thereby reducing the overall carbon footprint without abruptly disrupting energy supply.
- Another important factor is the nature of India’s industrial emissions. Sectors such as cement, steel, fertilisers, and petrochemicals are considered “hard-to-abate” sectors because their production processes inherently generate carbon dioxide.
- For example, cement manufacturing releases CO₂ not only from fuel combustion but also from chemical reactions in limestone processing.
- In such sectors, switching to renewable energy alone cannot eliminate emissions. CCU offers a technological pathway to manage these unavoidable emissions.
- India’s climate commitments also make CCU strategically important. Under the Paris Agreement, India has pledged to reduce the emissions intensity of its GDP and achieve net-zero emissions by 2070.
- Achieving this target while maintaining high economic growth will require a combination of renewable energy expansion, energy efficiency improvements, green hydrogen, and carbon management technologies like CCU.
- Institutions such as NITI Aayog have recognised CCU as part of India’s long-term decarbonisation strategy.
- Economic considerations further strengthen the case for CCU. By converting captured carbon into products such as methanol, synthetic fuels, construction materials, and chemicals, India can create new industries and green jobs.
- This supports the vision of a circular carbon economy, where waste emissions become raw materials for other sectors. For a country aiming to boost manufacturing under initiatives like Make in India, CCU can align environmental sustainability with industrial competitiveness
4. Where does India Stand today ?
- India has started promoting Carbon Capture and Utilisation (CCU) by extending research support through the Department of Science and Technology, which has developed a dedicated roadmap to guide research and development in this field.
- Additionally, the Ministry of Petroleum and Natural Gas has released a draft 2030 roadmap for Carbon Capture, Utilisation and Storage (CCUS), outlining potential projects where these technologies can be implemented.
- In the private sector, Ambuja Cements, part of the Adani Group, is collaborating with IIT Bombay on an Indo-Swedish pilot initiative aimed at converting captured carbon dioxide into fuels and other value-added materials.
- Similarly, JK Cement is engaged in developing a CCU demonstration facility focused on capturing CO₂ for use in products such as lightweight concrete blocks and olefins.
- Expanding beyond the cement industry, Organic Recycling Systems Limited (ORSL) is spearheading India’s first pilot-scale Bio-CCU platform, which transforms carbon dioxide derived from biogas streams into bio-alcohols and specialised chemical products
5. Global Scenario
- The European Union’s Bioeconomy Strategy and its Circular Economy Action Plan clearly endorse CCU as an approach to transform carbon dioxide into raw materials for fuels, chemicals, and other industrial products, aligning the technology with broader sustainability and circular economy objectives.
- In the industrial sector, ArcelorMittal and Mitsubishi Heavy Industries, Ltd. have partnered with the climate technology firm D-CRBN to test an innovative process at ArcelorMittal’s facility in Ghent, Belgium.
- This initiative focuses on converting captured CO₂ into carbon monoxide, which can then be reused in steelmaking and chemical manufacturing.
- In the United States, the expansion of CCU technologies is supported through a mix of fiscal incentives, including tax credits and government funding, especially for projects producing fuels and chemicals derived from carbon dioxide.
- Meanwhile, in the United Arab Emirates, the Al Reyadah project and proposed CO₂-to-chemicals clusters are integrating CCU solutions with green hydrogen to advance low-carbon industrial development
6. Way Forward
The primary challenge in expanding CCU in India relates to economic viability. The processes involved in capturing, refining, and converting carbon dioxide demand significant energy and financial investment. In the absence of supportive policy measures or incentives, products manufactured using captured CO₂ may find it difficult to compete with conventional, fossil-fuel-based alternatives that are currently more affordable.
Another major concern is the state of infrastructure. Effective deployment of CCU depends on the presence of well-developed industrial clusters, efficient systems for transporting captured CO₂, and seamless integration with downstream manufacturing units. However, such integrated ecosystems are not uniformly available across India’s industrial landscape.
In addition, the lack of well-defined regulatory standards, certification mechanisms, and stable market signals generates uncertainty for investors. This uncertainty can dampen private sector participation and restrict market demand for products derived from captured carbon.
That said, India has made encouraging progress by formulating strategic roadmaps for the advancement of CCU technologies. The successful and timely implementation of these plans will be crucial in ensuring that CCU contributes meaningfully to the country’s broader climate and industrial objectives
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For Prelims: Carbon Capturing, COP21, Paris Agreement, carbon cycle
For Mains:
1. What is Carbon farming? discuss the effective techniques within carbon farming for reducing greenhouse gas emissions, and explain the challenges that exist in implementing them, particularly in developing countries like India. (250 Words)
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Previous Year Questions
1. With reference to carbon nanotubes, consider the following statements (UPSC 2020)
1. They can be used as carriers of drugs and antigens in the human body.
2. They can be made into artificial blood capillaries for an injured part of the human body.
3. They can be used in biochemical sensors.
4. Carbon nanotubes are biodegradable.
Which of the statements given above are correct?
A. 1 and 2 only B. 2, 3 and 4 only C. 1, 3 and 4 only D. 1, 2, 3 and 4
2. With reference to the recent developments in science, which one of the following statements is not correct? (UPSC 2019)
A. Functional chromosomes can be created by joining segments of DNA taken from cells of different species.
B. Pieces of artificial functional DNA can be created in laboratories.
C. A piece of DNA taken out from an animal cell can be made to replicate outside a living cell in a laboratory.
D. Cells taken out from plants and animals can be made to undergo cell division in laboratory petri dishes
3. Consider the following statements (upsc 2016)
1. The Sustainable Development Goals were first proposed in 1972 by a global think tank called the 'Club of Rome
2. Sustainable Development goals has to be achieved by the year 2030
Which of the statements given above is/ are correct
A. 1 Only B. 2 Only C. Both 1 and 2 D. Neither 1 Nor 2
4. LPG stands for (MPSC 2017)
A. Liquidity, Profitability and Growth
B. Liberalisation, Privatisation and Growth
C. Liberalisation, Privatisation and Globalisation
D.None of the above
5. Pradhan Mantri Ujjwala Yojana was launched (RRC Group D 2018)
A. July 2017 B. January 2018 C. May 2014 D. May 2016
6. In the context of WHO Air Quality Guidelines, consider the following statements: (UPSC 2022)
1. The 24-hour mean of PM2.5 should not exceed 15 μg/m³ and annual mean of PM2.5 should not exceed 5 μg/m³.
2. In a year, the highest levels of ozone pollution occur during the periods of inclement weather.
3. PM10 can penetrate the lung barrier and enter the bloodstream.
4. Excessive ozone in the air can trigger asthma.
Which of the statements given above are correct?
A. 1, 3 and 4 B. 1 and 4 only C. 2, 3 and 4 D. 1 and 2 only
Answers: 1-C, 2-A, 3-B, 4-C, 5-D, 6-B
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Source: The Hindu
DIVERSITY IN JUDICIARY
1. Context
P. Wilson, senior advocate and Rajya Sabha MP of the Dravida Munnetra Kazhagam (DMK) party, has introduced a private member Bill to amend the Constitution in order to bring diversity in judicial appointments and set up regional benches of the Supreme Court
2. What does the Constitution provide?
Article 124 of the Constitution states that the President appoints judges of the Supreme Court in consultation with the Chief Justice of India (CJI). In the same manner, Article 217 lays down that High Court judges are appointed by the President after consulting the CJI, the concerned High Court’s Chief Justice, and the Governor of the respective State. Further, under Article 130, the Supreme Court is to function from Delhi, unless the Chief Justice of India, with the approval of the Central Government, designates another location as its seat
3. What is the collegium system?
- According to the constitutional framework, judicial appointments were made by the government in consultation with the judiciary until the 1980s.
- In the First Judges Case (1981), the Supreme Court ruled that the executive had primacy in appointing judges, on the ground that it is democratically accountable to the people.
- However, to safeguard judicial independence and prevent political influence, the Supreme Court in the Second Judges Case (1993) introduced the collegium system for appointments. This position was reaffirmed in the Third Judges Case (1998).
- Under the collegium system, appointments to the Supreme Court are recommended by a body comprising the Chief Justice of India (CJI) and four senior-most judges of the Supreme Court.
- For High Court appointments, the collegium includes the CJI and two senior-most Supreme Court judges. The collegium initiates proposals for appointments and forwards its recommendations to the Central Government.
- While the government may return a recommendation for reconsideration, if the collegium reiterates its view, the appointment becomes binding.
- The collegium system has played a significant role in maintaining judicial independence from the executive in matters of appointments. However, it has faced criticism for its opacity and limited accountability.
- Concerns have also been raised about alleged favoritism, including the appointment of relatives of sitting judges. In 2014, Parliament enacted the 99th Constitutional Amendment to establish the National Judicial Appointments Commission (NJAC), which was intended to recommend judicial appointments.
- The proposed NJAC was to include the CJI, two senior Supreme Court judges, the Union Law Minister, and two eminent persons.
- However, in 2015, the Supreme Court struck down the NJAC, holding that it violated the basic structure of the Constitution by undermining judicial independence. As a result, the collegium system continues to govern judicial appointments today
4. About this new private member's bill
- The collegium system prioritizes merit while recommending appointments to the higher judiciary. However, it has been criticized for not adequately representing the country’s social diversity.
- For example, among judges appointed to the higher judiciary between 2018 and 2024, only about one-fifth were from Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC).
- The representation of women has remained below 15%, while that of religious minorities is under 5%.
- A Private Member’s Bill seeks to address this imbalance by mandating proportional representation for SCs, STs, OBCs, women, and religious minorities in appointments to the Supreme Court and High Courts, in line with their population share.
- The Bill also proposes that the Central Government must notify collegium recommendations within a maximum period of 90 days.
- Access to the Supreme Court is another concern, as it functions solely from Delhi, making it difficult for many citizens to approach the apex court. Additionally, over 90,000 cases were pending before the Supreme Court as of January 2026.
- To tackle these challenges, the Bill suggests establishing regional benches of the Supreme Court in New Delhi, Kolkata, Mumbai, and Chennai.
- These benches would exercise the Court’s full jurisdiction, except in matters involving substantial constitutional questions, which would continue to be heard by the Constitution Bench at the principal seat in Delhi.
5. Way Forward
The responsibility for promoting social diversity in judicial appointments largely rests with the judiciary, particularly through the collegium mechanism. The proposed Private Member’s Bill assumes significance because it seeks to establish a constitutional mandate to achieve greater inclusivity. As a long-term measure, the National Judicial Appointments Commission (NJAC) could be reconsidered with a more diversified composition. Its structure may be expanded to include members from the legislature, the Bar Council, and academia, similar to appointment frameworks followed in countries such as South Africa and the United Kingdom. Such a model would make the consultative process more representative and participatory, while ensuring adequate inclusion of SCs, STs, OBCs, minorities, and women.
Furthermore, as suggested earlier by Parliamentary Committees and the Law Commission, regional benches of the Supreme Court can be created within the existing constitutional framework. The Court could begin by establishing a bench in one region on a pilot basis and subsequently expand to other regions within a defined timeframe
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For Prelims: Collegium system, National Judicial Appointments Commission (NJAC), Supreme court, Article 124, 99th Constitutional Amendment Act
For Mains:
1. Discuss the evolution of the Supreme Court of India from its inauguration in 1950 to the present day. How has its structure and capacity evolved to meet the changing demands of the legal landscape? (250 Words)
2. Examine the constitutional provisions that govern the Supreme Court of India. How do these provisions delineate the powers, jurisdiction, and composition of the Supreme Court? (250 Words)
3. What are the key features of the National Judicial Appointments Commission (NJAC) Act, and how did it differ from the Collegium system? (250 Words)
4. How does the appointment process of judges in the Supreme Court of India, emphasise the role of the Collegium system? What are the concerns associated with this system, and do you believe reforms are necessary? (250 Words)
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Previous Year Questions
1. With reference to the Indian judiciary, consider the following statements: (UPSC 2021)
1. Any retired judge of the Supreme Court of India can be called back to sit and act as a Supreme Court judge by the Chief Justice of India with the prior permission of the President of India.
2. A High Court in India has the power to review its own judgment as the Supreme Court does.
Which of the statements given above is/are correct?
A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
2. In India, Judicial Review implies (UPSC 2017)
A. the power of the Judiciary to pronounce upon the constitutionality of laws and executive orders
B. the power of the Judiciary to question the wisdom of the laws enacted by the Legislatures
C. the power of the Judiciary to review all the legislative enactments before they are assented to by the President
D. the power of the Judiciary to review its own judgments given earlier in similar or different cases
3. Consider the following statements:
1. The motion to impeach a Judge of the Supreme Court of India cannot be rejected by the Speaker of the Lok Sabha as per the Judges (Inquiry) Act, 1968.
2. The Constitution of India defines and gives details of what constitutes 'incapacity and proved misbehaviour' of the Judges of the Supreme Court of India
3. The details of the process of impeachment of the Judges of the Supreme Court of India are given in the Judges (Inquiry) Act, of 1968.
4. If the motion for the impeachment of a Judge is taken up for voting, the law requires the motion to be backed by each House of the Parliament and supported by a majority of the total membership of that House and by not less than two-thirds of total members of that House present and voting.
Which of the statements given above is/are correct?
A. 1 and 2 B. 3 only C. 3 and 4 only D. 1, 3 and 4
4.The power to increase the number of judges in the Supreme Court of India is vested in (UPSC 2014)
A. the President of India B. the Parliament C. the Chief Justice of India D. the Law Commission 5.The power of the Supreme Court of India to decide disputes between the Centre and the States falls under its (UPSC P 2014)
A. advisory jurisdiction B. appellate jurisdiction. C. original jurisdiction D. writ jurisdiction Answers: 1-A, 2-A, 3-C, 4-B, 5-C
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Source: The Hindu
