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DAILY CURRENT AFFAIRS, 28 MARCH 2026

RENEWABLE ENERGY

 

 

1. Context

India on Wednesday (March 25) revealed its climate targets for 2035, promising to make further progress on cutting the carbon intensity of its economy, expanding the deployment of renewable energy and creating carbon sinks from forests and trees.

2. Why use Renewable energy

  • Today we primarily use fossil fuels to heat and power our homes and fuel our cars. 
  • It’s convenient to use coal, oil, and natural gas for meeting our energy needs, but we have a limited supply of these fuels on Earth. 
  • We’re using them much more rapidly than they are being created. Eventually, they will run out. 
  • And because of safety concerns and waste disposal problems, the United States will retire much of its nuclear capacity by 2020. 
  • In the meantime, the nation’s energy needs are expected to grow by 33 per cent during the next 20 years. 
  • Renewable energy can help fill the gap
  • Even if we had an unlimited supply of fossil fuels, using renewable energy is better for the environment. 
  • We often call renewable energy technologies “clean” or “green” because they produce few if any pollutants. 
  • Burning fossil fuels, however, sends greenhouse gases into the atmosphere, trapping the sun’s heat and contributing to global warming. 
  • Climate scientists generally agree that the Earth’s average temperature has risen in the past century. 
  • If this trend continues, sea levels will rise, and scientists predict that floods, heat waves, droughts, and other extreme weather conditions could occur more often. 
  • Other pollutants are released into the air, soil, and water when fossil fuels are burned. 
  • These pollutants take a dramatic toll on the environment—and humans. 
  • Air pollution contributes to diseases like asthma. 
  • Acid rain from sulfur dioxide and nitrogen oxides harms plants and fish. Nitrogen oxides also contribute to smog.
  • Renewable energy will also help us develop energy independence and security. 
  • Replacing some of our petroleum with fuels made from plant matter, for example, could save money and strengthen our energy security. 
  • Renewable energy is plentiful, and the technologies are improving all the time. 
  • There are many ways to use renewable energy. 
  • Most of us already use renewable energy in our daily lives.
 

2.1.Hydropower 

  • Hydropower is our most mature and largest source of renewable power, producing about 10 per cent of the nation’s electricity. 
  • Existing hydropower capacity is about 77,000 megawatts (MW). Hydropower plants convert the energy in flowing water into electricity. 
  • The most common form of hydropower uses a dam on a river to retain a large reservoir of water. Water is released through turbines to generate power.
  •  “Run of the river” systems, however, divert water from the river and direct it through a pipeline to a turbine. 
  • Hydropower plants produce no air emissions but can affect water quality and wildlife habitats. 
 

2.2.Bioenergy 

  • Bioenergy is the energy derived from biomass (organic matter), such as plants. If you’ve ever burned wood in a fireplace or campfire, you’ve used bioenergy. 
  • But we don’t get all of our biomass resources directly from trees or other plants. 
  • Many industries, such as those involved in construction or the processing of agricultural products, can create large quantities of unused or residual biomass, which can serve as a bioenergy source. 
 

2.3.Geothermal Energy 

  • The Earth’s core, 4,000 miles below the surface, can reach temperatures of 9000° F. 
  • This heat—geothermal energy—flows outward from the core, heating the surrounding area, which can form underground reservoirs of hot water and steam. 
  • These reservoirs can be tapped for a variety of uses, such as to generate electricity or heat buildings. 
  • By using geothermal heat pumps (GHPs), we can even take advantage of the shallow ground’s stable temperature for heating and cooling buildings. 
 

2.4.Solar Energy 

  • Solar technologies tap directly into the infinite power of the sun and use that energy to produce heat, light, and power.
 

2.5. Wind Energy 

  • For hundreds of years, people have used windmills to harness the wind’s energy. 
  • Today’s wind turbines, which operate differently from windmills, are a much more efficient technology. 
  • Wind turbine technology may look simple: the wind spins turbine blades around a central hub; the hub is connected to a shaft, which powers a generator to make electricity. 
  • However, turbines are highly sophisticated power systems that capture the wind’s energy using new blade designs or airfoils. 
  • Modern, mechanical drive systems, combined with advanced generators, convert that energy into electricity. 
  • Wind turbines that provide electricity to the utility grid range in size from 50 kW to 6 
  • Wind energy has been the fastest growing source of energy since 1990.
 

2.6.Ocean Energy 

  • The ocean can produce two types of energy: thermal energy from the sun’s heat, and mechanical energy from the tides and waves. 
  • Ocean thermal energy can be used for many applications, including electricity generation. 
  • Electricity conversion systems use either the warm surface water or boil the seawater to turn a turbine, which activates a generator. 
  • The electricity conversion of both tidal and wave energy usually involves mechanical devices. 
  • A dam is typically used to convert tidal energy into electricity by forcing the water through turbines and activating a generator. 
  • Meanwhile, wave energy uses mechanical power to directly activate a generator or to transfer to a working fluid, water, or air, which then drives a turbine/generator.

2.7.Hydrogen 

  • Hydrogen is high in energy, yet its use as a fuel produces water as the only emission. 
  • Hydrogen is the universe’s most abundant element and also its simplest. 
  • A hydrogen atom consists of only one proton and one electron. 
  • Despite its abundance and simplicity, it doesn’t occur naturally as a gas on the Earth. 
  • Today, industry produces more than 4 trillion cubic feet of hydrogen annually. 
  • Most of this hydrogen is produced through a process called reforming, which involves the application of heat to separate hydrogen from carbon. Researchers are developing highly efficient, advanced reformers to produce hydrogen from natural gas for what’s called Proton Exchange Membrane fuel cells.
 

3. Steps were taken by the government to promote Renewable energy

The Indian renewable energy sector is the fourth most attractive renewable energy market in the world. India was ranked fourth in wind power, fifth in solar power and fourth in renewable power installed capacity, as of 2020.

 

3.1.Distribution of prominent renewable energy Hubs

  • Rajasthan
  • Gujarat
  • Andhra Pradesh
  • Karnataka
  • Telangana
  • Tamil Nadu

3.2.Steps taken

  • Permitting Foreign Direct Investment (FDI) up to 100 per cent under the automatic route,
  • Waiver of Inter-State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025,
  • Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2022,
  • Setting up of Ultra Mega Renewable Energy Parks to provide land and transmission to RE developers on a plug-and-play basis,
  • Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), Solar Rooftop Phase II, 12000 MW CPSU Scheme Phase II, etc,
  • Laying of new transmission lines and creating new sub-station capacity under the Green Energy Corridor Scheme for evacuation of renewable power,
  • Setting up of Project Development Cell for attracting and facilitating investments,
  • Standard Bidding Guidelines for tariff-based competitive bidding process for procurement of Power from Grid Connected Solar PV and Wind Projects.
4. Employment Generation
 
  • Deployment of large-scale renewable energy (RE) has the potential to create numerous employment opportunities in rural India in the coming decades. By 2030, it is projected that the clean-energy sectors could provide jobs for around one million individuals in the country.
  • However, the expansion of RE may have significant impacts on communities reliant on the land, involving changes in land use, modifications to ecosystems, shifts in livelihoods, and overall effects on land productivity.
  • As India progresses in scaling up RE, striking a balance between these interests may result in project commissioning delays, contributing to a waning interest among developers in RE tenders.
  • In 2020, wind developers, facing setbacks such as delays in land allocation, sought to terminate power-purchase agreements for approximately 565 MW wind capacity signed with the Solar Energy Corporation of India (SECI), prompting a decline in developers' enthusiasm for RE projects. Commissioning delays not only pose substantial financial risks but also jeopardize the reputation of RE developers.
  • In the pursuit of responsible RE deployment and the enhancement of communities in and around project sites, many developers actively support local development activities and community-led programs through corporate social responsibility (CSR) initiatives.
  • As an illustration, Tata Power Solar has established integrated vocational training programs for women and youth in multiple project sites.
  • Given the pivotal role of project developers in interacting with communities during land acquisition, construction, and operational phases, they play a crucial role in driving responsible practices. Additionally, regulators and investors prioritize assessing the responsible practices of new projects.
  • To encourage all developers to contribute to the rapidly growing RE ecosystem and promote responsible practices, two essential prerequisites need to be addressed
5. Way forward
 
The push for responsible energy is not to create new barriers for developers but is with the benefit of hindsight, that energy projects have externalities that must be addressed at the outset before they become entrenched. Responsible RE will strengthen the renewable ecosystem in India, and address roadblocks in siting, public acceptance and find the right synergy between energy security, society and the environment
 
 
For Prelims: Current events of national and international Significance
 
For Mains: General Studies II: Conservation, environmental pollution and degradation, environmental impact assessment.
 
Previous Year Questions
 

1.The term ‘Intended Nationally Determined Contributions’ is sometimes seen in the news in the context of (UPSC CSE, 2016)
a) pledges made by the European countries to rehabilitate refugees from the war-affected Middle East
b) plan of action outlined by the countries of the world to combat climate change
c) capital contributed by the member countries in the establishment of Asian Infrastructure Investment
d) Bank plan of action outlined by the countries of the world regarding Sustainable Development Goals

Answer (b)

2.Consider the following statements: (UPSC CSE, 2023)
Statement-I: Carbon markets are likely to be one of the most widespread tools in the fight
against climate change.
Statement-II: Carbon markets transfer resources from the private sector to the State.
Which one of the following is correct in respect of the above statements?
(a) Both Statement-I and Statement-II are correct and Statement-II is the correct
explanation for Statement-I
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct
explanation for Statement-I
(c) Statement-I is correct but Statement-II is incorrect
(d) Statement-I is incorrect but Statement-II is correct

Answer (b)

3. Consider the following activities: (UPSC CSE, 2023)
1. Spreading finely ground basalt rock on farmlands extensively
2. Increasing the alkalinity of oceans by adding lime
3. Capturing carbon dioxide released by various industries and pumping it into abandoned subterranean mines in the form of carbonated waters.
How many of the above activities are often considered and discussed for carbon capture and sequestration?
(a) Only one
(b) Only two
(c) All three
(d) None

Answer (c)

4. Consider the following statements: (UPSC CSE, 2025)
Statement I: At the 28th United Nations Climate Change Conference (COP28), India refrained from signing the ‘Declaration on Climate and Health’.
Statement II: The COP28 Declaration on Climate and Health is a binding declaration; and if signed, it becomes mandatory to decarbonize health sector.
Statement III: If India’s health sector is decarbonized, the resilience of its health-care system may be compromised.
Which one of the following is correct in respect of the above statements?
(a) Both Statement II and Statement III are correct and both of them explain Statement
(b) Both Statement II and Statement III are correct but only one of them explains Statement I
(c) Only one of the Statements II and III is correct and that explains Statement I
(d) Neither Statement II nor Statement II is correct

Answer (c)

Source: The Hindu
 
 

WORLD TRADE ORGANISATION (WTO)

 

1. Context

The World Trade Organization’s 14th Ministerial Conference (MC14) began in Cameroon on Thursday at a time when the trade body faces a crisis of relevance.

2. World Trade Organisation (WTO)

  • WTO is an international organization set up in 1995 by replacing the General Agreement on Trade and Tariffs (GATT) under the Marrakesh Agreement.
  • It is the only global international organization dealing with international Trade between nations.
  • Its HQ is located in Geneva, Switzerland.
  • Currently, WTO has 164 members and India is a founding member of WTO.
  • Currently, the head (Director-General) of WTO is Ngozi Okonjo-Iweala.

3. Objectives of WTO

  • To formulate and implement rules for international trade.
  • To provide a platform for negotiating and monitoring further trade liberalization.
  • To provide a platform for the settlement of disputes.
  • Providing assistance to the developing, least-developed, and low-income countries in transition to adjust to WTO rules and disciplines through technical cooperation and training.
  • To cooperate with the other major economic institutions (like the UN, World Bank, IMF, etc.) involved in global economic management.

4. Important trade agreements of WTO

  • Agreement on Agriculture (AoA),
  • Agreement on TRIPS (Trade-Related Aspects of Intellectual Property Rights),
  • Agreement on the Application of Sanitary and Phytosanitary Measures (SPS),
  • Agreement on Technical Barriers to Trade (TBT),
  • Agreement on Trade-Related Investment Measures (TRIMS),
  • General Agreement on Trade in Services (GATS) etc.

5. Geoeconomic Shift and the Need for WTO Reforms

  • Over 50 years ago, Richard Cooper argued that "trade policy is foreign policy," emphasizing the value of economic interdependence to deter security confrontation.
  • Today, the world is characterized by heightened securitization of international economic relations and a shift towards geoeconomic considerations, challenging the belief in economic interdependence as a deterrent to security issues.
  • The WTO, established to legalize and monitor economic interdependence, faces challenges due to unilateralism in international economic relations, particularly by developed countries like the US, who show little regard for WTO law.
  • Economic policies such as industrial subsidies and local content requirements have resurfaced, forgotten WTO rules like security exceptions are gaining prominence, and efforts to weaken trade multilateralism in favor of external plurilateral alignments are being made.
  •  Jeffrey Schott argues that expecting the G20 countries, especially the developed ones, to reform the WTO for the better is naïve, as a weak WTO aligns with the US foreign policy objective of strategic rivalry with China.
  • Schott suggests that middle powers like India, Indonesia, Brazil, and South Africa should take the lead in pushing for WTO reforms to address the current challenges.
  • Developing countries should prioritize four critical areas for WTO reform, with special attention on preserving the principle of special and differential treatment (SDT), which provides special rights to developing countries and obligates developed countries to treat them more favorably.

6. Key Areas for WTO Reforms

Strengthening Special and Differential Treatment (SDT): Lawyers Vineet Hegde and Jan Wouters highlight that only 21% of SDT provisions in WTO agreements obligate developed countries to provide differential treatment to developing countries. Efforts should focus on giving more enforceability to SDT provisions.

Reviving the Appellate Body: The WTO's appellate body has been paralyzed since 2019 due to the US's indifference. Other G20 countries need to either convince the US to change its stance or revive the appellate body without US participation to restore the WTO's dispute settlement mechanism.

Balancing Consensus and Plurilateral Discussions: With consensus-based decision-making in the WTO proving slow, there has been a shift towards plurilateral discussions on specific issues. While plurilateral agreements offer opportunities for rule-making, there is a need to establish a multilateral governance framework that incorporates key principles of non-discrimination, transparency, and inclusivity.

Addressing Transparency Gap: The WTO lacks transparency in terms of notification requirements. Members have a poor record of notifying laws and regulations affecting trade, leading to increased trade costs, particularly for developing countries. Efforts should be made to improve compliance with notification obligations.

Importance of Trade Multilateralism: Despite current trends, trade multilateralism remains crucial for countries like India. India, as the G20 President, should collaborate with other nations to drive the WTO reforms agenda, promoting inclusive trade multilateralism.

For Prelims: World Trade Organisation (WTO), General Agreement on Trade and Tariffs (GATT), Trade-Related Aspects of Intellectual Property Rights (TRIPS), and General Agreement on Trade in Services (GATS).

For Mains: 1. Discuss the key areas for reforms in the World Trade Organization (WTO) and their significance for promoting inclusive trade multilateralism. (250 Words)

Previous year Questions

1. In the context of the affairs which of the following is the phrase "Special Safeguard Mechanisms" mentioned in the news frequently? (UPSC 2010)

A. United Nations Environment Program

B. World Trade Organization Agreement

C. ASEAN-India

D. Free Trade G-20 Summits

Answer: B

2. Consider the following statements: (UPSC 2017)

1. India has ratified the Trade Facilitation Agreement (TFA) of the WTO

2. TFA is a part of WTO's Bali Ministerial Package of 2013

3. TFA came into force in January 2016

Which of the statements given above is/are correct?

A. 1 and 2 only

B. 1 and 3 only

C. 2 and 3 only

D. 1, 2 and 3

Answer: A

3. In the context of which of the following do you sometimes find the terms 'amber box, blue box, and green box' in the news? (UPSC 2016)

A. WTO affairs

B. SAARC affairs

C. UNFCCC affairs

D. India-EU negotiations on FTA

Answer: A

Source: The Indian Express

 

FINANCE BILL

 
 
1.Context
The Lok Sabha on Wednesday passed the Finance Bill 2026 with a voice vote, negating amendments moved by the Opposition members and approving the 33 government amendments moved by Finance Minister Nirmala Sitharaman.
 
2. What is Finance Bill
  • When a piece of legislation is yet to be passed as a law by the Houses of Parliament, it is termed a Bill. A Finance Bill is a Bill that, as the name suggests, concerns the country's finances it could be about taxes, government expenditures, government borrowings, revenues, etc. Since the Union Budget deals with these things, it is passed as a Finance Bill
  • Rule 219 of the Rules of Procedure of Lok Sabha states: ‘Finance Bill’ means the Bill ordinarily introduced in each year to give effect to the financial proposals of the Government of India for the following financial year and includes a Bill to give effect to supplementary financial proposals for any period
  • There are different kinds of Finance Bills:The most important of them is the Money Bill, The Money Bill is concretely defined in Article 110
  • A Money Bill is certified by the Speaker as such  in other words, only those Financial Bills that carry the Speaker’s certification are Money Bills
Article 110 states that a Bill shall be deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters:
(a) the imposition, abolition, remission, alteration or regulation of any tax;
 
(b) the regulation of the borrowing of money or the giving of any guarantee by the Government of India, or the amendment of the law with respect to any financial obligations undertaken or to be undertaken by the Government of India;
 
(c) the custody of the Consolidated Fund or the Contingency Fund of India, the payment of money into or the withdrawal of money from any such Fund
(d) the appropriation of money out of the Consolidated Fund of India;
 
(e) the declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any such expenditure;
 
(f) the receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money or the audit of the accounts of the Union or of a State; or
 
(g) any matter incidental to any of the matters specified in sub clauses (a) to (f)
 
  • A Bill shall not be deemed to be a Money Bill by reason only that it provides for the imposition of fines or other pecuniary penalties, or for the demand or payment of fees for licences or fees for services rendered, or by reason that it provides for the imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes
  • If any question arises whether a Bill is a Money Bill or not, the decision of the Speaker of the House of the People thereon shall be final
     
  • There shall be an endorsement of every Money Bill when it is transmitted to the Council of States under Article 109, and when it is presented to the President for assent under Article 111, the certificate of the Speaker of the House of the People signed by him that it is a Money Bill
3. Indexation
  • Which is offered to debt fund investors if the investment is redeemed after 36 months  means adjusting the cost of funds by taking inflation into consideration
  • In the case of debt funds, long-term capital gains were taxed at 20 per cent with indexation benefits
  • This benefit brought down an investor’s tax liability
  • However, there are concerns that the withdrawal of the benefit will lead to investors reassessing their allocations to debt mutual funds
  • This may impact flows into these funds. And as debt mutual funds in turn channel funds into the bond market, this move is being seen as one that is to the detriment of the growth and development of the bond market in India
 
For Prelims: Money Bill, Finance Bill, Lok Sabha, Rajya Sabha
For Mains:
1. What do you understand by money bill and How is it different from Finance Bill? (250 Words)
 
 
Previous Year Questions:
1.Regarding Money Bill, Which of the following statements is not correct? (UPSC 2018)
A. A bill shall be deemed to be a money bill if it contains only provisions relating to imposition, abolition, remission, 
B. A money Bill has provisions for the custody of the Consolidated fund of India or the Contingency Fund of India
C. A money bill is concerned with the appropriation of money out of the Contingency Fund of India
D. A money Bill deals with the regulation of borrowing of Money or giving of any guarantee by the Government of India
 
Answer (C)
 
 
Source: Business Standard
 
 

BRICS

 

1. Context

Having positioned itself as the leader of the Global South, New Delhi must balance its aspirations with the demands of its strategic partnerships

2. BRICS

  • The BRICS alliance, composed of Brazil, Russia, India, China, and South Africa, has evolved from an economic consortium to a multifaceted geopolitical force.
  • Emerging economies with considerable potential, these countries together form a collective that challenges traditional power dynamics and fosters cooperation in an increasingly interconnected world.

Formation and Evolution

  • BRICS was officially established in 2006, with the objective of fostering economic growth, development, and cooperation among member nations.
  • Over time, it has transformed into a platform for addressing a broader spectrum of global challenges, encompassing political, security, and social concerns alongside economic issues.
3.Push back against liberal international order 
 
  • A core principle in international relations is the absence of a central global authority. While nations may come to agreements on certain rules, there’s no global body with the power to universally enforce them. Scholars often refer to this as an “anarchic system”—not because it's chaotic, but because there is no supreme governing structure overseeing international conduct.
  • States primarily pursue their national interests. Although collaboration between countries is possible, it tends to be unstable. Power dynamics are crucial—stronger nations usually assert their will, while weaker ones often have limited choices, echoing themes from the Melian Dialogue in Thucydides’ History of the Peloponnesian War. Global power is unevenly shared, and those who hold more influence often shape international norms to benefit themselves.
  • Following World War II, the Western powers—led by the United States—established the liberal international order. This system, built through institutions like the IMF, World Bank, and WTO, mirrored Western ideals such as market liberalism, democratic governance, and the central role of the US dollar in global finance.
  • This framework functioned effectively for the Western world for decades. However, in the current century, many countries are beginning to question the relevance of a system rooted in the post-1945 era.
  • While rising nations like China, India, Brazil, and South Africa once accepted this order, they are now challenging it due to shifting economic power and the emergence of a multipolar world. The BRICS group has become the most prominent symbol of this growing resistance
4. De-dollarisation and global power shift 
 
  • One of the strongest themes to emerge from the BRICS summit in Brazil was the push toward de-dollarisation. While the term may sound technical, its implications are heavily political.
  • This concept has been gaining momentum over the years, but recent developments—particularly the use of financial systems as tools for sanctions—have made it more urgent. Currently, global trade and finance rely heavily on the US dollar.
  • For example, India typically pays in dollars when importing oil from Russia, Brazil often borrows in dollars, and China's overseas investments usually pass through dollar-based networks like SWIFT. This entrenched dependence grants the US both economic power and political influence.
  • During the Brazil summit, BRICS nations revisited the proposal of creating a common currency—not as an immediate goal, but as a statement of direction. In the short term, they are encouraging trade using their own national currencies.
  • Russia and China now conduct the majority of their bilateral trade in roubles and yuan. India has started settling some payments with countries like Iran and Sri Lanka in rupees, and has begun conducting oil transactions with the UAE in rupees and dirhams.
  • The New Development Bank, established by BRICS, is also moving toward issuing loans in local currencies to minimize reliance on the dollar. This shift is not just about cutting transaction fees—it's about gaining independence from a financial system that many nations in the Global South feel is skewed against their interests.
  • The path toward de-dollarisation will be challenging. The US dollar continues to dominate global finance due to its stability, global trust, and the strength of America’s financial infrastructure.
  • However, the repeated calls by BRICS for alternatives reflect a growing dissatisfaction. While this transition won’t happen quickly, the direction is clear: reduce dependency on a system largely controlled by Washington
5. South-South Cooperation
 
  • BRICS positions itself as a collective voice for nations that were excluded from shaping the global order established after World War II. It portrays itself as an advocate for the Global South, promoting equitable development, more inclusive trade frameworks, and the restructuring of major international institutions.
  • Unlike the IMF or World Bank, the New Development Bank (NDB) provides financing without the usual political conditions. BRICS members are also collaborating on joint ventures in sectors like infrastructure and renewable energy.
  • There have also been discussions about setting up a BRICS-led credit rating agency to reduce reliance on dominant Western agencies. The group consistently calls for changes to institutions such as the UN Security Council and the World Bank, aiming to amplify the influence of emerging economies.
  • Within BRICS, countries like Brazil, India, and South Africa act as intermediaries. As democratic nations with expanding economies, they are often seen as relatable leaders among developing states.
  • China contributes significant financial resources and geopolitical clout, while Russia, increasingly distanced from Western alliances, is seeking closer ties with non-Western countries.
  • This drive to create new systems and mechanisms stems from a common dissatisfaction with a global order that many feel does not account for the realities and needs of the developing world. BRICS is not only advocating for policy reforms but also striving to reshape global perceptions of development and leadership

6. Geopolitical Relevance

  • Counterbalance to Western Influence: BRICS serves as a counterweight to the dominance of Western powers. The coalition's diverse representation from different regions empowers non-Western countries to assert their interests on the global stage.
  • Global South Unity: BRICS resonates with many countries in the Global South that seek a voice in international affairs. It presents an alternative to the traditional Western-dominated institutions, offering a platform for collaboration and advocacy.

7. Economic Cooperation and Growth

  • Economic Powerhouses: Collectively, BRICS nations account for a substantial portion of the world's population and GDP. Their economic potential has led to discussions on reforming global financial institutions to better reflect contemporary realities.
  • Intra-BRICS Trade: Trade among BRICS members has grown significantly. Initiatives like the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) bolster financial cooperation and stability within the group.

8. Geopolitical Challenges and Opportunities

  • Diverse Interests: As BRICS expands and diversifies, differing geopolitical interests may arise, potentially leading to internal divisions. However, this diversity also presents opportunities for creative solutions to global challenges.
  • Diplomatic Outreach: BRICS engages with other regional and international organizations, strengthening its influence. The expansion of the group's membership underscores its growing geopolitical relevance.

9. India's Role and Beyond

  • India's Diplomacy: India has played an active role within BRICS, emphasizing issues such as counter-terrorism, cybersecurity, and climate change. Its strategic partnerships contribute to the coalition's expansion and its influence in shaping its direction.
  • Global Impact: BRICS expansion into a broader coalition incorporating West Asian countries like Egypt, Iran, Saudi Arabia, and the UAE signifies a deliberate shift towards greater global political relevance. This expansion highlights BRICS' adaptability to changing geopolitical dynamics.

10. BRICS New Members Dynamics

  • Unanimous Decisions: BRICS decisions require unanimous agreement, reflecting collective decision-making.
  • Geopolitical Partnerships: While Russia and China confront West-related challenges, Brazil, South Africa, and India maintain significant partnerships with the US and Europe.
  • China's Expansion Drive: China spearheads BRICS expansion, prioritizing membership growth.
  • Inclusion of Iran: China and Russia's influence is seen in Iran's inclusion, showcasing their collaboration.
  • Mediation Efforts: China's role reconciles rivals Saudi Arabia and Iran within the alliance.
  • Saudi Arabia's Shift: Saudi Arabia's entry signifies a move towards an independent foreign policy, diverging from the US alliance.
  • Global Significance for Russia and Iran: BRICS membership elevates Russia and Iran's global partnerships, challenging Western dominance.

11. Implications for India

  • Strategic Role: India played a lead role in drafting BRICS membership criteria, demonstrating its strategic influence within the alliance.
  • Expanded Influence: The inclusion of new members who are strategic partners of India enhances its influence within BRICS.
  • Geopolitical Balancing: BRICS expansion allows India to navigate between its ties with the West and its position within this non-Western coalition.
  • Global Advocacy: With more representation and diverse members, India can push for UN reforms and increased Global South representation.
  • Diplomatic Challenges: India might need to exert more effort to assert its influence in an alliance with a wider range of members and potential competing interests.
  • Economic Opportunities: Collaboration with economically strong members like China can lead to enhanced trade and investment prospects for India.
For Prelims: BRICS, Global South Unity, Western Influence, New Development Bank (NDB), and Contingent Reserve Arrangement (CRA).
For Mains: 1. Discuss the Implications of BRICS' Expansion for India's Geopolitical Positioning and Influence within the Alliance.
2. Analyze India's Role in Shaping BRICS' Membership Criteria and Its Strategic Significance in the Expanded Coalition.
 

Previous year Questions

1. With reference to a grouping of countries known as BRICS, consider the following statements: (UPSC 2014)
1. The First Summit of BRICS was held in Rio de Janeiro in 2009.
2. South Africa was the last to join the BRICS grouping.
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. With reference to BRIC countries, consider the following statements: (UPSC 2010)
1. At present, China's GDP is more than the combined GDP of all three other countries.
2. China's population is more than the combined population of any two other countries.
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: A
 
3. The 'Fortaleza Declaration', recently in the news, is related to the affairs of  (UPSC 2015)
A. ASEAN
B. BRICS
C. OECD
D. WTO
Answer: B
Source: The Hindu
 
 

DEFENCE ACQUISITION COUNCIL

 

1. Context

Defence Acquisition Council (DAC) clears proposals worth Rs 2.38 lakh crore to augment defence capabilities 

2. About the Defence Acquisition Council

The Defence Acquisition Council (DAC) is the apex body for all defence acquisitions in India. It was formed after recommendations made by the Group of Ministers on 'Reforming the National Security System' in 2001, post-Kargil war. The DAC is headed by the Defence Minister and comprises the following members:

  • Chief of the Defence Staff (CDS)
  • Secretary, Department of Defence Production
  • Secretary, Finance
  • Secretary, Defence Research and Development
  • Controller General of Defence Accounts
  • Other senior officers from the Ministry of Defence and the Services

The Role of the Defence Acquisition Council

The DAC's primary role is to:

  • Accord approval for AoN (Acceptance of Necessity) for Capital Acquisition Proposals.
  • Categorise the acquisition proposals into 'Buy, Buy & Make, & Make'.
  • In-principle approval of 15-Year Long-Term Integrated Perspective Plan (LTPP) for Defence Forces.
  • Delegate powers to Services/C&AS for the acquisition of items up to a certain value.
  • Consider and approve other issues as may be referred to it by the Defence Minister.

Functions of the Defence Acquisition Council

The DAC's primary functions are to:

  • Approve capital acquisitions for the Indian Armed Forces.
  • Formulate and implement policies and procedures for defence acquisitions.
  • Monitor the progress of defence acquisitions.
  • Oversee the implementation of the Defence Procurement Procedure (DPP).

Reasons for the creation of the Defence Acquisitions Council 

The DAC was created to address the following shortcomings of the previous defence acquisition system:

  • Lack of a clear and transparent decision-making process.
  • Delays in the procurement of defence equipment.
  • Escalation of costs.
  • Lack of coordination between different agencies involved in the procurement process.

3. About Defence acquisition

Defence acquisition is the process of acquiring goods and services for the Indian Armed Forces. It is a complex and time-consuming process that involves the identification of requirements, the preparation of specifications, the selection of vendors, the negotiation of contracts, and the delivery of equipment. The Indian defence acquisition process is governed by the Defence Procurement Procedure (DPP), which is a set of guidelines that outlines the process for acquiring defence equipment.

The key stages of the defence acquisition process:

  •  The first step is to identify the requirements of the Armed Forces. This is done through a detailed assessment of the operational needs of the Armed Forces and the availability of resources.
  • Once the requirements have been identified, the next step is to prepare the specifications for the equipment to be acquired. The specifications must be clear, detailed, and unambiguous so that the vendors can understand what is required.
  • The next step is to select the vendors who will be invited to participate in the bidding process. The vendors are selected based on their technical ability, financial strength, and experience.
  • Once the vendors have been selected, the next step is to negotiate the contracts. The contracts must be fair and reasonable, and they must protect the interests of the government.
  • The final step is to deliver the equipment to the Armed Forces. Once the equipment has been delivered, it must be tested and accepted by the Armed Forces.

4. The Defence Procurement Procedure (DPP)

The Defence Procurement Procedure (DPP) is the guideline for defence acquisitions in India. The DPP was first introduced in 2006 and has been revised several times since then. The DPP outlines the process for defence acquisitions, from the identification of a requirement to the final acceptance of a product.

The DPP is designed to ensure that defence acquisitions are conducted in a transparent, efficient, and cost-effective manner. The DPP also seeks to promote indigenous defence production and to maximize the involvement of Indian companies in the defence sector.

Key features of the DPP

  • The DPP emphasizes the need for transparency in all stages of the defence acquisition process. This includes publishing all relevant documents online and making them available to the public.
  • The DPP aims to streamline the defence acquisition process and reduce delays. This includes simplifying the tendering process and reducing the number of approvals required.
  • The DPP seeks to ensure that defence acquisitions are conducted cost-effectively. This includes negotiating the best possible price for goods and services and promoting indigenous defence production.
  • The DPP promotes indigenous defence production by giving preference to Indian companies in the tendering process. The DPP also provides incentives for Indian companies to invest in research and development.
  • The DPP seeks to maximize the involvement of Indian companies in the defence sector. This includes encouraging Indian companies to form joint ventures with foreign companies.

5. The Way Forward

The DAC and the DPP play a vital role in ensuring that the Indian Armed Forces are equipped with the latest and best possible weapons and equipment. The DAC and the DPP are also important for promoting indigenous defence production and for maximizing the involvement of Indian companies in the defence sector.

 

For Prelims: Defence Acquisition Council, Defence Procurement Procedure, Light Combat Aircraft, Tejas Mk 1 A and 156, Light Combat Helicopters, Hindustan Aeronautics Limited, Kargil war
For Mains: 
1. Critically analyze the role of the Defence Acquisition Council (DAC) in streamlining and expediting defence acquisitions in India. (250 Words)
 
Previous Year Questions
 
1. The Light Combat Aircraft (LCA) designed and developed by HAL is also known as (MP Police Constable 2017)
A. Suryakiran        B. Aryabhatta      C. Tejas         D. Prakash
 
 
2. Which of the following statements is true about the recent procurement of Tejas fighter’s aircraft by IAF? (IB ACIO Grade II 2021) 
(1) The IAF has recently purchased 83 Tejas fighters aircraft from HAL
(2) The total deal is Rs. 78,000-crore
A. 1 only         B. Neither 1 nor 2         C.  Both 1 and 2      D. 2 only
 
 
3. What is the name of India's indigenously built Light Combat Helicopter? (OSSC BSSO  2022) 
A. Nag         B. Trishul         C. Prachand          D. Agni
 
 
4. The headquarters of the Hindustan Aeronautics Limited is located at _______________. (MP Police Constable 2017) 
A. Chennai        B. Bengaluru        C.  Dewas     D. Koraput
 
 
5. What was Kargil war otherwise known as? (MP Patwari  2017) 
A. Operation Vijay       B. Operation Vishwas   C. Operation Shaurya   D. Operation Paramveer
 
Answers:1-C, 2-A, 3-C, 4-B 5-A
 
Mains
1. Analyze the circumstances that led to the Tashkent Agreement in 1966. Discuss the highlights of the Agreement. (UPSC 2013)
 
Source: The Indian Express
 
 

PRODUCTION LINKED INCENTIVE (PLI) SCHEME

 
 
 
1. Context
 
The status of implementation of Production Linked Incentive (PLI) Scheme for promotion of domestic manufacturing of critical Key Starting Materials (KSMs) / Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India
 
 
2. About Production-Linked Incentive (PLI) Scheme

 

The Production-Linked Incentive (PLI) scheme is an initiative by the Indian government to boost domestic manufacturing in specific sectors. It incentivizes companies, both domestic and foreign, to set up or expand production facilities in India by offering financial rewards based on incremental sales achieved over a set period.

  • The government announces a PLI scheme for a particular sector with specific targets for production and sales.
  • Companies apply for the scheme and submit their production plans.
  • If selected, companies receive a percentage of their incremental sales (over a base year) as an incentive.
  • The incentive amount varies depending on the sector and the level of incremental sales achieved.
  • The scheme typically runs for several years, providing companies with long-term financial support.

 

3. Sectors with Current PLI Schemes

 

  • Mobile phone manufacturing and specified electronic components have been successful in attracting major players like Apple and Samsung to set up production in India.
  • Large-scale electronics manufacturing to boost domestic production of TVs, laptops, and other electronics products.
  • High-efficiency solar PV modules to make India a global leader in solar energy production.
  • Automobiles and auto components incentivize the production of electric vehicles, hydrogen fuel cell vehicles, and advanced auto components.
  • Man-made fibre (MMF) apparel and textiles to boost domestic production of high-quality MMF textiles.
  • White goods (air conditioners, refrigerators, etc.) to make India a global hub for white goods manufacturing.

 

4. Sectors Likely to See PLI Schemes in the Future

 

  • The pharmaceuticals and medical devices sector is crucial for national health security and has the potential for significant growth.
  • Green hydrogen and ammonia fuels are essential for achieving climate goals and could benefit from PLI support.
  • Advanced manufacturing technologies include robotics, 3D printing, and artificial intelligence, which are crucial for future industries.
  • The food processing sector has vast potential for value creation and job creation, and PLI could help address inefficiencies.

 

5. Benefits of the PLI Scheme

 

  • PLI attracts investment and encourages companies to manufacture in India, reducing dependence on imports.
  • New manufacturing units and increased production lead to job creation in various sectors.
  • PLI attracts global companies with advanced technology, leading to knowledge transfer and skill development in India.
  • Increased domestic production can lead to higher exports and strengthen the Indian economy.
 

6. Challenges in the PLI Scheme

 

  • Companies need significant upfront investment to set up new production facilities, which can be a deterrent for some.
  • The application and approval process for PLI schemes can be lengthy and complex, discouraging some companies.
  • The government needs to ensure the long-term sustainability of PLI schemes to avoid dependence on subsidies.

 

7. The Way Forward

 

The PLI scheme is a promising initiative with the potential to transform India's manufacturing landscape. By addressing the challenges and continuously improving its design, the government can further incentivize domestic production and boost India's economic growth.

 
For Prelims: Production Linked Incentive scheme,  industrial policy
For Mains: 
1. Discuss the role of the government in promoting domestic manufacturing. Should the focus be on incentives like the Production Linked Incentive scheme or on creating a conducive business environment? (250 Words)
 
 
 
Previous Year Questions
 

1. Consider, the following statements : (UPSC 2023)

Statement-I : India accounts for 3.2% of global export of goods.

Statement-II : Many local companies and some foreign companies operating in India have taken advantage of India's ‘Production-linked Incentive’ scheme.

Which one of the following is correct in respect of the above statements?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

(c) Statement-I is correct but Statement-II is incorrect

(d) Statement-I is incorrect but Statement-II is correct

Answer: D

 

Source: The Indian Express

 

ELECTRIC VEHICLES ARE CATCHING FIRE

 
 
 
1. Context
 
A fire tore through a house in Indore on March 18, killing eight people, including two children. An electric vehicle (EV) charging point outside appeared to have sparked the blaze. An investigation is underway.
 
2. Are EV Batteries Safe?
 
 
  • Electric vehicle (EV) batteries are generally safe, but understanding why they are considered safe—and where the risks come from—requires a closer look at how they work.
  • Most EVs use lithium-ion batteries, which store a large amount of energy in a compact space. This high energy density is what makes EVs efficient and capable of long driving ranges.
  • However, it also means that if something goes wrong—such as overheating or physical damage—the energy can be released rapidly. This is where concerns about safety, especially fires, arise.
  • In normal conditions, EV batteries are carefully controlled by sophisticated systems. Each battery pack is managed by a Battery Management System (BMS), which continuously monitors temperature, voltage, and current.
  • If any abnormality is detected—like excessive heat or overcharging—the system can shut down or isolate parts of the battery to prevent further damage.
  • In addition, modern EVs are equipped with cooling systems, often liquid-based, that regulate temperature during charging and driving. These features significantly reduce the likelihood of dangerous situations.
  • Despite these safeguards, there are specific scenarios where risks can emerge. One of the most discussed is “thermal runaway,” a chain reaction where a battery cell overheats and triggers neighboring cells to do the same.
  • This can happen due to manufacturing defects, poor-quality materials, or external damage such as a severe accident. Once initiated, thermal runaway can be difficult to stop and may lead to fire. However, it is important to note that such incidents are relatively rare, especially in well-regulated and high-quality vehicles.
  • Another factor influencing safety is the quality of manufacturing and regulation. In countries like India, earlier incidents involving electric two-wheelers highlighted how substandard battery design or lack of proper testing could lead to failures.
  • This prompted the government to introduce stricter safety standards, such as AIS-156, which mandate rigorous testing and better thermal management systems. As a result, the industry has been moving toward safer battery chemistries, such as lithium iron phosphate (LFP), which are more stable and less prone to overheating.
  • When compared to conventional petrol or diesel vehicles, EVs actually catch fire less frequently. However, when EV fires do occur, they can be more challenging to extinguish because the battery can reignite even after the initial flames are put out. This has led to new firefighting protocols and safety training worldwide
 
 
3. What are the Causes for thermal runaway?
 
 
  • Manufacturers typically enclose EV battery packs within strong casings made of reinforced steel or aluminium to enhance protection. However, a severe impact—especially to the underside of the vehicle—can distort the outer casing and damage the internal cells, potentially causing a short circuit.
  • Overcharging is another concern. When a battery is charged beyond its intended limits, excess charge may accumulate in unintended areas within the cells.
  • While established EV manufacturers incorporate safety mechanisms to prevent this, the same level of protection may not exist with faulty or third-party chargers. Regular overnight charging using such equipment can therefore raise the risk.
  • In addition, batteries naturally expand and contract during operation. In rare cases, manufacturing flaws—such as tiny metal irregularities—can cause the positive and negative electrodes to come into contact.
  • This can trigger a surge of current, generating heat that may spread across the battery pack. Electrical infrastructure also plays a role; for instance, outdated household wiring or extension cords may overheat if they are unable to handle the continuous electrical load
 
4. Do external conditions matter?
 
 
  • In high temperatures, the cooling mechanisms in EVs may find it difficult to dissipate excess heat effectively. Leaving a vehicle parked under direct sunlight for extended periods or plugging it in for charging immediately after a long drive can further increase thermal strain on the battery.
  • Over time, batteries undergo natural wear and tear, leading to the deterioration of their internal components. If users neglect warning signals or fail to carry out routine inspections, early indicators such as swelling or chemical breakdown may go unnoticed.
  • Flood conditions pose another significant risk. After heavy rains, polluted water can seep into the battery pack, potentially triggering short circuits. In fact, several EV fire incidents have been reported days after vehicles were exposed to floodwater.
  • It is important to note that EVs are not inherently more hazardous than conventional vehicles. Petrol-powered cars also catch fire—and often more frequently—because they store highly flammable fuel near engines that operate at high temperatures.
  • However, fires involving EV batteries tend to burn at higher temperatures, spread more rapidly, and are more difficult to extinguish, partly because the battery can release oxygen during combustion.
  • In the Indore case, the severity of the incident was compounded by additional factors, including the presence of LPG cylinders inside the house, a sports bike parked indoors, and electronic door locks that failed during the power outage
 
 
5. Contemporary Scenario in Industry
 
  • Most modern EVs are equipped with cooling channels running alongside the battery cells, through which a coolant circulates to absorb excess heat and release it into the surrounding air.
  • Researchers are now working on advanced cooling methods in which the coolant evaporates as it takes in heat, allowing for more efficient heat transfer and better management of sudden temperature increases.
  • At the same time, manufacturers are experimenting with batteries that use solid electrolytes instead of liquid ones, aiming to lower the chances of thermal runaway.
  • They are also improving internal safety barriers so that if a single cell malfunctions, the resulting fire does not spread to the rest of the battery pack.
  • On the user side, certain precautions can significantly enhance safety. It is advisable to use only the charger provided with the vehicle or one approved by the manufacturer, avoid leaving the vehicle to charge unattended for long periods, and ensure that household electrical systems are capable of handling high-power loads.
  • Additionally, batteries should be checked after any major impact. Experts also suggest allowing the battery to cool down after extended use before plugging it in, and keeping the charging area free from obstructions.
  • In response to a series of fire incidents, the Bureau of Indian Standards introduced revised safety guidelines for EV batteries in 2023.
  • Under the AIS-156 standard, the Automotive Research Association of India mandates rigorous testing to assess how heat spreads within a battery pack and requires designs that provide occupants with at least five minutes to safely evacuate in the event of a fire.
 
6. Way Forward
 
 
Another critical dimension is charging infrastructure and electrical readiness. As EV adoption grows in countries like India, the supporting electrical systems—especially in residential areas—must be upgraded. Old wiring, unsafe extension cords, and uncertified chargers can become weak links. Standardization and certification of public and private charging systems will reduce these risks significantly
 
 
 
For Prelims: Electric Vehicles, Fuel Cell Electric Vehicles (FCEVs), Electric Vehicle Policy, 2020, National Electric Mobility Mission Plan (NEMMP), Faster Adoption and Manufacturing of (hybrid and) electric vehicles (FAME), Global Lithium Value Chain.
For Mains: 1. Analyze the challenges and opportunities in promoting the adoption of electric vehicles (EVs) in developing countries like India. Discuss the key factors that hinder EV penetration and propose strategies to overcome them.(250 Words)
 
 

Previous year Question

1. Which of the following Indian States/Union Territories launched Electric Vehicle Policy on 7th August 2020? (UPPSC 2020)

A. Madhya Pradesh
B. Uttar Pradesh
C. Delhi
D. Tamil Nadu
Answer: C
Source: The Hindu

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