HEATWAVE
1. Context
The United Nations Food and Agriculture Organization (FAO) and the World Meteorological Organization (WMO) said heatwaves are becoming more frequent, intense and prolonged, damaging crops, livestock, fisheries, and forests
2. What is a Heat Wave?
- A heatwave is a period of abnormally high temperatures, a common phenomenon in India during the months of May-June and in some rare cases even extends till July.
- Indian Meteorological Department (IMD) classifies heat waves according to regions and temperature ranges. As per IMD, the number of heatwave days in India has increased from 413 over 1981-1990 to 600 over 2011-2020.
- This sharp rise in the number of heatwave days has resulted due to the increasing impact of climate change.
- The last three years have been La Niña years, which has served as a precursor to 2023 likely being an El Niño year. (The El Niño is a complementary phenomenon in which warmer water spreads westeast across the equatorial Pacific Ocean.)
- As we eagerly await the likely birth of an El Niño this year, we have already had a heat wave occur over northwest India.
- Heat waves tend to be confined to north and northwest India in El Niño years.
Image Source:News18
3. How do Heat waves Occur?
- Heat waves are formed for one of two reasons warmer air is flowing in from elsewhere or it is being produced locally.
- It is a local phenomenon when the air is warmed by higher land surface temperature or because the air sinking down from above is compressed along the way, producing hot air near the surface.
- First of all, in spring, India typically has air flowing in from the westnorthwest. This direction of airflow is bad news for India for several reasons.
- Likewise, air flowing in from the northwest rolls in over the mountains of Afghanistan and Pakistan, so some of the compression also happens on the leeward side of these mountains, entering India with a bristling warmth.
- While air flowing over the oceans is expected to bring cooler air, the Arabian Sea is warming faster than most other ocean regions.
- Next, the strong upper atmospheric westerly winds, from the Atlantic Ocean to India during spring, control the near-surface winds.
- Any time winds flow from the west to the east, we need to remember that the winds are blowing faster than the planet which also rotates from west to east.
- The energy to run past the earth near the surface, against surface friction, can only come from above. This descending air compresses and warms up to generate some heat waves.
4. Impacts of heat waves in India
- The frequent occurrence of heat waves also adversely affects different sectors of the economy.
- For instance, the livelihood of poor and marginal farmers is negatively impacted due to the loss of working days.
- Heatwaves also have an adverse impact on daily wage workers' productivity, impacting the economy.
- Crop yields suffer when temperatures exceed the ideal range.
- Farmers in Haryana, Punjab, and Uttar Pradesh have reported losses in their wheat crop in the past rabi season. Across India, wheat production could be down 6-7% due to heat waves.
- Mortality due to heat waves occurs because of rising temperatures, lack of public awareness programs, and inadequate long-term mitigation measures.
- According to a 2019 report by the Tata Center for Development and the University of Chicago, by 2100 annually, more than 1.5 million people will be likely to die due to extreme heat caused by climate change.
- The increased heat wave will lead to an increase in diseases like diabetes, circulatory and respiratory conditions, as well as mental health challenges.
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The concurrence of heat and drought events is causing crop production losses and tree mortality. The risks to health and food production will be made more severe by the sudden food production losses exacerbated by heat-induced labor productivity losses.These interacting impacts will increase food prices, reduce household incomes, and lead to malnutrition and climate-related deaths, especially in tropical regions.
5. How does air mass contribute to heat waves?
- The other factors that affect the formation of heat waves are the age of the air mass and how far it has traveled.
- The north northwestern heatwaves are typically formed with air masses that come from 800-1600 km away and are around two days old.
- Heat waves over peninsular India on the other hand, arrive from the oceans, which are closer (around 200-400km) and are barely a day old. As a result, they are on average less intense.
6. Way ahead for Heat waves
- Identifying heat hot spots through appropriate tracking of meteorological data and promoting timely development and implementation of local Heat Action Plans with strategic inter-agency coordination, and a response that targets the most vulnerable groups.
- Review existing occupational health standards, labor laws, and sectoral regulations for worker safety in relation to climatic conditions.
- Policy intervention and coordination across three sectors health, water, and power are necessary.
- Promotion of traditional adaptation practices, such as staying indoors and wearing comfortable clothes.
- Popularisation of simple design features such as shaded windows, underground water storage tanks, and insulating house materials.
- Advance implementation of local Heat Action Plans, plus effective inter-agency coordination is a vital response that the government can deploy in order to protect vulnerable groups.
For Prelims & Mains
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For Prelims: Heat Wave, India Meteorological Department (IMD), El Nino, Equatorial Pacific Ocean, La Nina, Malnutrition, Heat Action Plans.
For Mains: 1. Examine the various adverse impacts caused by heat waves and how India should deal with them.
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Previous Year Questions
1.What are the possible limitations of India in mitigating global warming at present and in the immediate future? (UPSC CSE 2010)
1. Appropriate alternate technologies are not sufficiently available. 2. India cannot invest huge funds in research and development. 3. Many developed countries have already set up their polluting industries in India. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3 Answer (a) India faces challenges in addressing Global Warming: Developing and underdeveloped nations lack access to advanced technologies, resulting in a scarcity of viable alternatives for combating climate change. Being a developing nation, India relies partially or entirely on developed countries for technology. Moreover, a significant portion of the annual budget in these nations is allocated to development and poverty alleviation programs, leaving limited funds for research and development of alternative technologies compared to developed nations. Analyzing the statements provided: Statements 1 and 2 hold true based on the aforementioned factors. However, Statement 3 is inaccurate as the establishment of polluting industries by developed countries within India is not feasible due to regulations governing industrial setup Mains 1.Bring out the causes for the formation of heat islands in the urban habitat of the world. (UPSC CSE Mains GS 1 2013) |
Source: The Hindu
MONETARY POLICY COMMITTEE (MPC)
1. Context
The impact of the West Asia conflict on the Indian economy dominated discourses at the last Monetary Policy Committee (MPC) meeting (April 6-8) with all members expressing serious concern, minutes of the MPC meeting released on Tuesday indicated
2. What is Monetary policy?
Monetary policy refers to the actions and strategies undertaken by a country's central bank to control and regulate the supply of money, credit availability, and interest rates in an economy. Its primary goal is to achieve specific economic objectives, such as price stability, full employment, and sustainable economic growth.
Central banks use various tools to implement monetary policy, including:
Interest Rates: Adjusting the interest rates at which banks lend to each other (known as the federal funds rate in the United States) influences borrowing and spending in the economy.
Open Market Operations: Buying or selling government securities in the open market to regulate the money supply. When a central bank buys securities, it injects money into the system, and when it sells them, it reduces the money supply.
Reserve Requirements: Mandating the amount of reserves banks must hold, affecting their ability to lend money.
By influencing the availability and cost of money, central banks aim to stabilize prices, control inflation, encourage or discourage borrowing and spending, and promote economic growth. However, the effectiveness of monetary policy can be influenced by various factors such as global economic conditions, fiscal policies, and market expectations.
3.What is the primary objective of the monetary policy?
The primary objective of monetary policy typically revolves around maintaining price stability or controlling inflation within an economy. Central banks often set an inflation target, aiming to keep it at a moderate and steady level. Stable prices help in fostering confidence in the economy, encouraging investment, and ensuring that the value of money remains relatively constant over time.
However, while controlling inflation is often the primary goal, central banks might also consider other objectives, such as:
Full Employment: Some central banks have a secondary objective of supporting maximum employment or reducing unemployment rates.
Economic Growth: Encouraging sustainable economic growth by managing interest rates and credit availability to stimulate or cool down economic activity.
Exchange Rate Stability: In some cases, maintaining stable exchange rates might be an important consideration, especially for countries with open economies heavily reliant on international trade.
These additional objectives can vary depending on the economic conditions, priorities of the government, and the central bank's mandate. Nonetheless, ensuring price stability is typically the fundamental goal of most monetary policies, as it forms the basis for a healthy and growing economy.
4. Monetary Policy Committee (MPC)
- In line with the amended RBI Act, 1934, Section 45ZB grants authority to the central government to establish a six-member Monetary Policy Committee (MPC) responsible for determining the policy interest rate aimed at achieving the inflation target.
- The inaugural MPC was formed on September 29, 2016. Section 45ZB stipulates that "the Monetary Policy Committee will ascertain the Policy Rate necessary to meet the inflation target" and that "the decisions made by the Monetary Policy Committee will be obligatory for the Bank."
- According to Section 45ZB, the MPC comprises the RBI Governor as the ex officio chairperson, the Deputy Governor overseeing monetary policy, a Bank official nominated by the Central Board, and three individuals appointed by the central government.
- The individuals chosen by the central government must possess "capabilities, ethical standing, expertise, and experience in economics, banking, finance, or monetary policy" (Section 45ZC)
5.Monetary Policy Committe and Inflation
- The Monetary Policy Committee (MPC) plays a crucial role in managing inflation through its decisions on the policy interest rate.
- When inflation is too high, the MPC might decide to increase the policy interest rate. This action aims to make borrowing more expensive, which can reduce spending and investment in the economy.
- As a result, it could help decrease demand for goods and services, potentially curbing inflation.
- Conversely, when inflation is too low or the economy needs a boost, the MPC might decrease the policy interest rate.
- This move makes borrowing cheaper, encouraging businesses and individuals to spend and invest more, thus stimulating economic activity and potentially raising inflation closer to the target level.
- The MPC's goal is to use the policy interest rate as a tool to steer inflation toward a target set by the government or central bank.
- By monitoring economic indicators and assessing the current and expected inflation levels, the MPC makes informed decisions to maintain price stability within the economy
6. Way forward
With more than half of the current financial year witnessing positive developments in the economy, the full financial year should conclude as projected with a strong growth performance and macroeconomic stability. Yet risks on the downside persist. Inflation is one of them that has kept both the government and the RBI on high alert. Financial flows in the external sector also need constant monitoring as they impact the value of rupee and the balance of payments. A fuller transmission of the monetary policy may also temper domestic demand
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For Prelims: Economic and Social Development
For Mains: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
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Previous Year Questions
1. Consider the following statements: (UPSC 2021)
1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in the public interest.
3. The Governor of the RBI draws his natural power from the RBI Act.
Which of the above statements is/are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
Answer: C
2. Concerning the Indian economy, consider the following: (UPSC 2015)
Which of the above is/are component(s) of Monetary Policy? (a) 1 only (b) 2, 3 and 4 (c) 1 and 2 (d) 1, 3 and 4 Answer: C 3. An increase in Bank Rate generally indicates: (UPSC 2013) (a) Market rate of interest is likely to fall. (b) Central bank is no longer making loans to commercial banks. (c) Central bank is following an easy money policy. (d) Central bank is following a tight money policy. Answer: (d) 4. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)? (UPSC 2017) 1. It decides the RBI's benchmark interest rates. 2. It is a 12-member body including the Governor of RBI and is reconstituted every year. 3. It functions under the chairmanship of the Union Finance Minister. Select the correct answer using the code given below: A. 1 only B. 1 and 2 only C. 3 only D. 2 and 3 only Answer: A |
Source: Indianexpress
FOSSIL FUELS
1. Context
Record power generation from clean energy sources in India in 2025 resulted in a rare decline in production of electricity from fossil fuels not just in India but also globally, a new report has revealed.
2. About Fossil Fuels
Fossil fuels are hydrocarbon-based energy sources derived from the remains of ancient plants and animals buried and subjected to geological processes over millions of years. The three primary types of fossil fuels are coal, oil (petroleum), and natural gas. These fuels have been pivotal in powering the industrialization and development of modern societies, serving as the mainstay for electricity generation, transportation, and numerous industrial processes.
Challenges regarding Fossil Fuels
Despite their widespread use, fossil fuels pose significant challenges:
- The combustion of fossil fuels releases carbon dioxide (CO2) and other greenhouse gases, contributing to global warming and climate change.
- Burning fossil fuels releases pollutants that degrade air quality, leading to respiratory issues and environmental damage.
- Fossil fuels are finite resources, and their extraction raises concerns about depletion and environmental degradation, such as oil spills and coal mining impacts.
- Dependence on fossil fuels, often concentrated in specific regions, raises concerns about geopolitical stability and energy security.
Net Zero by 2050
- The concept of achieving net-zero emissions by 2050 involves balancing the amount of greenhouse gases emitted with an equivalent amount removed from the atmosphere.
- This ambitious target aims to mitigate the impacts of climate change and limit global warming to 1.5 degrees Celsius above pre-industrial levels.
- Achieving net-zero emissions requires a transition to renewable energy, energy efficiency, and carbon capture technologies.
3. Dubai Consensus
The Dubai Consensus, adopted at COP28 in December 2023, represents a significant step forward in the global fight against climate change.
Dubai Consensus and Fossil Fuels
- The Dubai Consensus, a recent agreement, marks a significant departure by formally acknowledging that emissions from fossil fuels play a central role in driving global warming. Contrary to previous agreements that broadly addressed "greenhouse gas emissions," this marks the first explicit acknowledgement since 1995 that fossil fuels, including coal, oil, and gas, are the primary contributors to climate change.
- Despite the acknowledgement of the role of fossil fuels, particularly coal, in global warming, the Dubai Consensus does not signal an imminent end to the era of fossil fuels. Notably, it's crucial to recognize that the agreement falls short of providing specific timelines or commitments to phase out these fuels entirely.
- The Glasgow Climate Conference in 2021 marked a notable shift when countries, for the first time, agreed to address the impact of coal, the fossil fuel with the most substantial global warming footprint. However, the commitment made was to "phase down" coal rather than "phase out," and it lacked a specific termination year.
- The Dubai Consensus, by encompassing all fossil fuels, acknowledges the necessity of eliminating these energy sources to prevent a 1.5-degree Celsius rise in global average temperatures. However, the absence of concrete timelines reflects the challenges posed by varying energy needs and sources among nations.
- Large developing countries like India and China have raised objections to singling out coal, emphasizing its crucial role in lifting populations out of poverty and ensuring energy security. Both countries have substantial coal reserves, with India being a net importer. The consensus brings parity among fossil fuels, recognizing that all need eventual elimination.
4. Challenges in the Immediate Replacement of Fossil Fuels
The immediate replacement of fossil fuels poses substantial challenges, primarily due to the deeply entrenched and efficient infrastructure supporting the extraction, processing, and distribution of coal, oil, and gas. Over nearly two centuries of industrialization, a sophisticated system has evolved to convert these fossil fuels into electricity, petrol, diesel, and various other combustible products.
- Fossil fuel infrastructure is well-established, encompassing extraction, processing, and distribution networks for coal, oil, and gas.
- Power plants and refineries are optimized for the combustion of fossil fuels, contributing to the reliability and stability of energy supply.
- Fossil fuels offer on-demand availability, providing a consistent and controllable source of energy.
- Natural sources such as solar and wind, while cleaner, face challenges due to intermittency (nighttime for solar, variable wind patterns) and lack of effective energy storage infrastructure.
- Energy storage infrastructure for renewable sources is inadequate to handle the intermittency of solar and wind power, hindering their widespread adoption.
- Developing efficient and scalable energy storage solutions is crucial for transitioning away from fossil fuels.
- National plans, such as India's National Electricity Plan 2022-27, continue to include substantial additions to coal-fired capacity, highlighting the persistent reliance on fossil fuels.
- The infrastructure and investment in new coal-fired power plants reflect the ongoing challenges in immediately replacing fossil fuels.
- The Dubai Consensus acknowledges the necessity of transitioning away from fossil fuels but suggests the potential role of "transition fuels" to facilitate the process while ensuring energy security.
- While the consensus does not define these fuels, natural gas is considered a contender due to its lower emissions compared to coal. However, concerns exist regarding methane emissions associated with natural gas production.
- The COP deliberations face challenges due to the substantial presence of oil and gas manufacturers. Hosting a climate summit in a petro-state adds complexity to addressing the transition from fossil fuels.
- Natural gas, often considered a transition fuel, has advantages in reducing emissions when producing electricity and providing heat. However, criticisms argue that framing natural gas in this context may disproportionately benefit countries with existing production and distribution capabilities.
5. Dubai Consensus on Methane Emissions
- The Dubai Consensus underscores the critical importance of addressing methane emissions, recognizing methane as a potent greenhouse gas with significantly higher heat-trapping capabilities than carbon dioxide. The consensus acknowledges that substantial and accelerated reductions in non-carbon-dioxide emissions, particularly methane emissions, are essential to limit global warming and prevent average temperatures from exceeding a 1.5-degree Celsius increase by the end of the century.
- The agreement emphasizes the need for urgent action, setting a target for humanity to significantly reduce methane emissions by the year 2030. It aligns with the Global Methane Pledge, signed by nearly 150 countries at the COP-27 summit held in Egypt the previous year. The pledge commits countries to cut methane emissions by 30% of 2020 levels by the end of this decade.
- China and the United States, two major global players, have taken specific steps to address industrial methane emissions resulting from natural gas production. This collaborative effort signifies a shared commitment to tackling a significant source of methane release and contributing to the global reduction target.
- India, while resisting external pressure to cut methane emissions, has outlined plans to enhance the efficiency of its energy production processes. The nation contends that a substantial portion of its methane emissions originates from the agricultural sector. Despite resistance, India's commitment to making energy production more efficient aligns with the broader goal of reducing greenhouse gas emissions.
6. The Way Forward
Fossil fuels have played a pivotal role in shaping modern societies, their challenges have spurred global efforts, including the pursuit of net-zero emissions and the recognition of their impact in agreements like the Dubai Consensus. The transition to cleaner energy sources and international collaboration are critical components of addressing the environmental and economic concerns associated with fossil fuel use.
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For Prelims: Fossil Fuels, Cop 28, Net zero emission, air pollution, Dubai Consensus, Global Methane Pladge, India's National Energy Plan, climate change
For Mains:
1. Discuss the challenges and opportunities associated with transitioning away from fossil fuels to achieve net-zero emissions by 2050. (250 Words)
2. Discuss the potential economic benefits of transitioning to a green economy. How can this transition create new jobs and opportunities? (250 Words)
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Previous Year Questions
1. The UN Framework Convention on Climate Change (UNFCCC) has announced which country to host the 28th Conference of the Parties (COP28) in 2023? (SSC CGL 2023) A. UAE B. US C. UK D. Russia
2. The United Nations Framework Convention on Climate Change (UNFCCC) is an international treaty drawn at (UPSC 2010) A. United Nations Conference on the Human Environment, Stockholm, 1972 B. UN Conference on Environment and Development, Rio de Janeiro, 1992 C. World Summit on Sustainable Development, Johannesburg, 2002 D. UN Climate Change Conference Copenhagen, 2009
3. UNFCCC (United Nations Framework Convention on Climate Change) entered into from - (Sr. Teacher Gr II NON-TSP G.K. 2018) A. 21 March 1994 B. 5 June 1992 C. 12 May 1991 D. 5 June 1993
4. The 'Paris Agreement' adopted in Conference of the Parties (COP 21) in December 2015 will be effective provided the document is signed by: (UPSC CAPF 2016) A. 51 UNFCCC parties accounting for at least 51% of global greenhouse gas emission
B. 51 UNFCCC parties accounting for at least 55% of global greenhouse gas emission
C. 55 UNFCCC parties accounting for at least 55% of global greenhouse gas emission
D. 75 UNFCCC parties accounting for at least 51% of global greeenhouse gas emission
5. The term ‘Intended Nationally Determined Contributions’ is sometimes seen in the news in the context of (UPSC 2016) (a) pledges made by the European countries to rehabilitate refugees from the war-affected Middle East
6. With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct? (UPSC 2016)
Select the correct answer using the code given below. (a) 1 and 3 only (b) 2 only (c) 2 and 3 only (d) 1, 2 and 3
7. Consider the following statements with reference to Organisation for Economic Co-operation and Development (OECD): (RBI Grade B 2022) 1. OECD is an official Permanent observer to the United Nations and is referred to as a think-tank or as a monitoring group.
2. India is not a member of OECD.
3. OECD is funded by its member countries.
Which of the statement given above is/ are correct? A.1 only B.1 and 2 only C.2 and 3 only D.1, 2 and 3 E.2 only Answer: D 8. Which one of the following is associated with the issue of control and phasing out of the use of ozone-depleting substance? (UPSC CSE 2015) A.Bretton woods conference
B. Montreal Protocol
C. Kyoto Protocol
D. Nagoya Protocol
Answer: B
9. Headquarters of the World Meteorological Organization is located in (NDA 2017)
A. Washington
B. Geneva
C. Moscow
D. London
Answer: B
10. With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct? (UPSC 2016)
1. The Agreement was signed by all the member countries of the UN and it will go into effect in 2017
2. The Agreement aims to limit greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2°C or even 1.5°C above pre-industrial levels.
3. Developed countries acknowledged their historical responsibility in global warming and committed to donate $ 1000 billion a year from 2020 to help developing countries to cope with climate change.
Select the correct answer using the code given below:
A. 1 and 3 only B. 2 only C. 2 and 3 only D. 1, 2 and 3
Answer: B
11. A new type of El Nino called El Nino Modoki appeared in the news. In this context, consider the following statements: (UPSC 2010)
1. Normal El Nino forms in the Central Pacific ocean whereas El Nino Modoki forms in the Eastern Pacific ocean.
2. Normal El Nino results in diminished hurricanes in the Atlantic ocean but El Nino Modoki results in a greater number of hurricanes with greater frequency.
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
12. La Nina is suspected to have caused recent floods in Australia. How is La Nina different from El Nino? (UPSC 2011)
1. La Nina is characterized by unusually cold ocean temperature in the equatorial Indian Ocean whereas El Nino is characterized by unusually warm ocean temperature in the equatorial Pacific Ocean.
2. El Nino has an adverse effect on the south-west monsoon of India, but La Nina has no effect on the monsoon climate.
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: D
13. Consider the following statements: (MPSC 2017)
a. La Nina is a little girl.
b. During the time of La Nina cold water in the ocean rises to the surface.
c. La Nina strengthens the Indian monsoon.
d. During the time of El Nino, trade winds weaken, and warm water moves east in the ocean. Which of the above statements is/are correct?
A. Only a and b B. a, b and c C. Only b and c D. All of the above
Answer: D
14. Which of the following statements regarding 'Green Climate Fund' is/are correct? (UPSC 2015)
1. It is intended to assist the developing countries in adaptation and mitigation practices to counter climate change.
2. It is founded under the aegis of UNEP, OECS, Asian Development Bank and World Bank. 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
15. In the context of any country, which one of the following would be considered as part of its social capital? (UPSC 2019)
A. The proportion of literature in the population
B. The stock of its buildings, other infrastructure and machines
C. The size of population in the working age group
D. The level of mutual trust and harmony in the society
Answer: D
16. The International Development Association, a lending agency, is administered by the (UPSC 2010)
A. International Bank for Reconstruction and Development
B. International Fund for Development
C. United Nations Development Programme.
D. United Nations Industrial Development Organization
Answer: A
Answers: 1-A, 2-B, 3-A, 4-C, 5-B, 6-B, 7-D, 8-B, 9-B, 10-B, 11-B, 12-D, 13-D, 14-A, 15-D, 16-A
Mains
1. Describe the major outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference? (UPSC 2021)
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Source: The Hindu
SEMICONDUCTOR
1. Context
The foundation stone for India’s first advanced 3D chip packaging unit was laid in Bhubaneswar, a project which IT Secretary S Krishnan said can put the country “on the map” in terms of advanced chip packaging, and one the government will be watching “very closely
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
FOREIGN EXCHANGE RESERVES
1. Context
Concerned about the falling value of the rupee amid the rise in oil prices and fears over inflation in the wake of the West Asia conflict, the Reserve Bank of India last week instructed banks to limit their net open exposure to the currency in the foreign exchange market to $100 million by the end of each day. Authorised dealers must comply with this rule by April 10.
2. What are foreign exchange reserves?
- Foreign exchange reserves are the stock of foreign money and other external assets kept by a country’s central bank, in India’s case the Reserve Bank of India (RBI). You can think of it as the country’s financial emergency fund in foreign currencies.
- Imagine India as a large household. Just as a family keeps savings in the bank for emergencies, the country keeps a reserve of foreign assets so that it can meet international payments whenever required.
- Since India imports many essential goods—especially crude oil, electronics, machinery, and gold—it has to pay other countries mostly in US dollars or other international currencies. This is where foreign exchange reserves become extremely important.
- These reserves are mainly held in the form of US dollars, euros, pounds, yen, gold, and assets such as US government bonds and treasury bills. They may also include Special Drawing Rights (SDRs) and the reserve position with the IMF.
- To understand it more clearly, suppose India wants to import crude oil from another country. The payment cannot usually be made in Indian rupees because international trade is largely settled in dollars. The RBI uses the country’s foreign exchange reserves to ensure that sufficient dollars are available in the system for such payments.
- Foreign exchange reserves also play a major role in protecting the value of the rupee. For example, if the rupee starts falling sharply against the dollar, the RBI may sell dollars from its reserves in the market and buy rupees.
- This increases the supply of dollars and helps stabilize the exchange rate. Recently, the RBI has used reserves to reduce volatility in the rupee during global tensions and oil price shocks.
- In simple terms, foreign exchange reserves act as the country’s economic shield and confidence booster. They help India continue imports during crises, repay external debt, stabilize the currency, and reassure investors that the country is financially strong
3. What is the foreign exchange reserves of India in 2026?
- The central bank introduced this ceiling at a time when the Indian rupee had slipped to a historic low of 94.81 against the US dollar, marking a depreciation of nearly 4 percent since the conflict began in late February.
- This measure was primarily intended to arrest the rupee’s slide by restricting the extent of foreign currency exposure that banks are allowed to hold within the domestic market.
- Moreover, as pressure on the domestic currency intensified, the Reserve Bank of India deployed dollars from its foreign exchange reserves to support the rupee and contain excessive volatility.
- Consequently, India’s forex reserves have declined by more than $30 billion, falling to around $698.34 billion since the onset of the conflict. This move reflects the central bank’s growing concern over exchange-rate instability and its efforts to prevent sharp and disorderly fluctuations in the currency market.
- Large-scale outflows by foreign investors have further intensified downward pressure on the rupee, causing it to breach the ?92, ?93, and now ?94 per dollar levels within the same month.
- The currency had already weakened beyond the ?90 and ?91 marks in December 2025, and it is now hovering dangerously close to the ?95 per dollar threshold, underscoring the severity of the ongoing external and financial pressures
4. What are the components of the foreign reserves of India?
- The largest component is Foreign Currency Assets (FCA). This forms the bulk of India’s reserves—usually around 80–85 percent. It includes assets held in major international currencies such as US dollars, euros, pounds, and yen.
- These are not just bundles of cash; most of them are invested in safe foreign assets such as US Treasury bonds, sovereign securities, deposits with foreign central banks, and commercial banks. This is the main pool the RBI uses when it wants to stabilize the rupee in the forex market.
- The second component is gold reserves. India holds a significant quantity of gold as part of its reserves. Gold acts as a store of value and a hedge during times of global uncertainty, inflation, or geopolitical tensions. Unlike paper currencies, gold retains intrinsic value and strengthens confidence in the country’s reserve position
- The third component is Special Drawing Rights (SDRs). These are international reserve assets created by the International Monetary Fund.
- SDRs are not a currency in themselves, but they can be exchanged for freely usable currencies like the US dollar. They act as an additional source of international liquidity for member countries.
- The fourth component is the Reserve Tranche Position (RTP) in the IMF. This refers to the amount India can immediately withdraw from the IMF without any conditions, based on its quota contribution to the Fund. It is like India’s readily available claim with the IMF
5. RBI Proposed Changes
- Bankers are showing growing concern over the proposed regulatory changes, as these measures could have immediate operational and financial implications. A key issue being raised is the pace of implementation.
- Several banks have requested the Reserve Bank of India to provide a transition period of nearly three months so that existing foreign exchange positions can be gradually reduced or restructured in an orderly manner.
- According to market analysts tracking the developments, sudden enforcement would leave limited scope for effective risk management and could result in avoidable losses.
- The magnitude of existing exposure has further heightened these concerns. Estimates suggest that individual banks currently hold significant dollar positions, making the cumulative exposure across the banking system quite large.
- If the revised limits are introduced without any transition period, banks may be forced to unwind these positions quickly, potentially leading to dollar sales worth nearly $11–15 billion across the sector, according to market assessments.
- Such rapid unwinding could also expose banks to mark-to-market losses, particularly if positions have to be exited at unfavourable exchange rates.
- These losses would be reflected in their treasury books for the ongoing March quarter, thereby exerting pressure on profitability and quarterly earnings.
- Market observers also note that if the rupee continues to weaken, the RBI may introduce additional measures to support the currency and preserve foreign exchange reserves.
- A similar approach was witnessed during the global financial crisis and the taper tantrum, when then RBI Governor Raghuram Rajan responded to pressure on the rupee by encouraging foreign currency inflows.
- One notable intervention was the FCNR(B) scheme, which offered subsidized swap rates and successfully attracted more than $30 billion, significantly strengthening India’s forex reserves
6. Way Forward
Market analysts suggest that if the rupee’s depreciation persists, the Reserve Bank of India may introduce additional policy measures to support the currency and protect foreign exchange reserves. A similar approach was seen during earlier episodes of financial stress. During the global financial crisis and the subsequent taper tantrum, when the rupee came under significant pressure, then RBI Governor Raghuram Rajan responded by encouraging foreign currency inflows into the country. One of the most notable interventions was the FCNR(B) scheme, which offered concessional swap rates and succeeded in attracting more than $30 billion, thereby substantially strengthening India’s foreign exchange reserves
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For Prelims: Current events of national and international importance
For Mains: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
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Previous Year Questions
1.Which of the following has/have occurred in India after its liberalization of economic policies in 1991? (UPSC CSE, 2017)
1. Share of agriculture in GDP increased enormously. 2. Share of India’s exports in world trade increased. 3. FDI inflows increased. 4. India’s foreign exchange reserves increased enormously. Select the correct answer using the codes given below: (a) 1 and 4 only (b) 2, 3 and 4 only (c) 2 and 3 only (d) 1, 2, 3 and 4 Answer (b)
2. With reference to the Indian economy, consider the following statements: (UPSC CSE, 2022)
1. If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities. 2. If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market. 3. If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars. Which of the statements given above are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Answer (b)
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Source: The Hindu
MATERNITY LEAVE IN INDIA
1. Context
Last week, the Supreme Court ruled that adoptive mothers could avail themselves of 12 weeks of paid maternity leave regardless of the age of their children at the time of adoption. Striking down Section 60(4) of the Social Security Code, 2020 (previously Section 5(4) of the Maternity Benefit Act, 1961), which limited this benefit only to mothers who adopted children under the age of three months, the Court said that an adoptive mother had the same rights and obligations towards the child as a biological mother.
2. Maternity leave in India
- The provision of statutory maternity benefits for working women in India traces its origins to the colonial period. The Bombay Maternity Benefit Act of 1929 was among the earliest laws, extending such benefits to women employed in factories.
- Over time, similar legislation was introduced in other regions prior to Independence. Eventually, in 1961, Parliament enacted the Maternity Benefit Act, which granted 12 weeks of paid maternity leave to working women nationwide.
- A significant reform came in 2017 with the Maternity Benefit (Amendment) Act. This amendment increased paid maternity leave for biological mothers to 26 weeks and, for the first time, included provisions for adoptive and surrogate mothers.
- Under Section 5(4), women who legally adopt a child below the age of three months, as well as commissioning mothers, are eligible for 12 weeks of maternity leave starting from the date the child is handed over to them
3. Drawbacks of the above law
- While the Maternity Benefit Act, 1961 and its 2017 amendment marked a progressive step for working women, the framework has several structural and practical limitations that affect its effectiveness.
- One of the most significant drawbacks is that the law places the entire financial burden of paid maternity leave on employers rather than the state.
- This increases the cost of hiring women, especially in the private sector, and can unintentionally discourage employers from recruiting or promoting women of childbearing age. In this sense, a well-intentioned welfare measure may contribute to gender discrimination in hiring practices.
- Another major limitation is its restricted coverage. The law applies mainly to women working in the formal sector, which constitutes only a small fraction of India’s workforce.
- A vast majority of women employed in the informal sector—such as domestic workers, agricultural labourers, and gig workers—remain outside its scope, thereby excluding those who are often most vulnerable.
- The 2017 amendment to the Maternity Benefit (Amendment) Act, 2017 extended leave to 26 weeks, which is beneficial for child and maternal health, but it has also raised concerns among employers regarding productivity and workforce continuity.
- Smaller firms, in particular, may struggle to manage prolonged employee absence without adequate support or incentives from the government.
- The provision for adoptive and surrogate mothers, while a positive inclusion, is limited in scope.
- It applies only when the adopted child is below three months of age, excluding many adoptive parents who take in older infants or children. This creates an inconsistency in how caregiving responsibilities are recognized.
- Additionally, the law does not adequately address paternity leave or shared parental responsibilities. By focusing almost entirely on mothers, it reinforces traditional gender roles and places the burden of childcare primarily on women, which can further affect their long-term career progression.
- There are also implementation challenges. Awareness about entitlements remains low among workers, and compliance is uneven, particularly in smaller establishments. Monitoring mechanisms are not always robust, leading to gaps between legal provisions and actual practice
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Supreme Court on Motherhood
The Court emphasized that motherhood should not be confined to a purely biological perspective. It recognized adoption as an integral aspect of reproductive autonomy. Highlighting the importance of leave, the Court observed that this period is essential for building a strong emotional connection between the mother and the child. It further pointed out that children raised in institutional settings often exhibit higher levels of stress hormones compared to those brought up in family environments, underscoring the need for adequate paid leave even in cases involving older adopted children
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4. Maternity Benefit Act 1961
- The Maternity Benefit Act was originally passed by Parliament on December 12, 1961, to regulate the employment of women in “certain establishments” for the period before and after childbirth and “to provide for maternity benefit and certain other benefits.”
- Originally it applied to every establishment “being a factory, mine or plantation” and later in 1973, it was extended to “any such establishment belonging to Government” and “every establishment where persons are employed for the exhibition of equestrian, acrobatic and other performances.”
- It repealed the Mines Maternity Benefit Act, 1941 and Maternity Benefit Act, 1929
- Section 4 of the 1961 Act prohibited the employment of or work by women during a certain period and under sub-section (1) stated, “No employer shall knowingly employ a woman in any establishment during the six weeks immediately following the day of her delivery or her miscarriage.”
- The right to paid maternity leaves was also given under Section 5 of the 1961 Act, although the period of such leave could not exceed twelve weeks, “that is to say, six weeks up to and including the day of her delivery and six weeks immediately following that day.”
- Additionally, no woman could be allowed to avail maternity benefits if she had not worked in the establishment for at least “one hundred and sixty days in the twelve months immediately preceding the date of her expected delivery.”
- These benefits would be allowed without dismissing the female worker from service or reduction of wages
- Violating provisions of the Act could result in three months’ punishment, with or without a fine
- On March 9, 2017, the Maternity Benefits (Amendment) Act 2017, was passed by Parliament, which brought about key changes to the original Act
5. Way Forward
The Court also urged the Union government to consider introducing a comprehensive legal provision that formally recognises paternity leave for all fathers, whether biological or adoptive. It observed that India’s existing legal framework does not sufficiently acknowledge the role of fathers in childcare and stressed the need to promote shared parenting responsibilities. At present, only male government employees are eligible for 15 days of paternity leave in cases of childbirth or adoption, while in the private sector, such leave is largely governed by individual company policies
Source: The Hindu
SILVER ECONOMY
1. Context
India isn’t ageing yet. We are still a young country, with more than half our population under 25, and about 65 per cent under 35. But some of our states are ageing — and Kerala leads the way.
2. What is the concept of Silver Economy?
- The Silver Economy refers to the part of the economy that is shaped by the needs, aspirations, and economic participation of older people, especially senior citizens and the ageing population. The word silver symbolically comes from the silver or grey hair associated with old age.
- In simple terms, it is the entire ecosystem of goods, services, jobs, technologies, and policies that revolve around people in the later stages of life.
- It is not just about healthcare or pensions. Rather, it covers everything that helps older people live longer, healthier, more independent, and economically active lives.
- To understand it in an explanatory way, imagine a society where the proportion of elderly people is steadily increasing because people are living longer and birth rates are falling.
- This demographic shift changes the nature of demand in the economy. Older people need age-friendly housing, better healthcare, assisted living services, insurance products, medicines, financial planning, rehabilitation support, travel packages designed for seniors, digital tools that are easy to use, and even leisure and wellness services.
- All the industries that respond to these needs together form the silver economy.
- For example, when companies design smart watches that monitor heart rate and falls, or when hospitals expand geriatric care, or when banks create pension investment plans specifically for retired people, these are all part of the silver economy.
- Even sectors like tourism and transport become part of it when they create senior-friendly services such as easy boarding, medical assistance, and comfortable travel packages.
- But the concept goes beyond consumption. It also recognizes that elderly people are not merely dependents; they are also contributors to economic growth.
- Many senior citizens continue to work, invest, mentor younger generations, start businesses, or participate in the service sector. Their experience, skills, and purchasing power make them an important economic force.
- Modern policy discussions increasingly see ageing not as a burden alone, but as an opportunity for innovation, employment generation, and market expansion.
- A very important aspect of the silver economy is technology for ageing populations, sometimes called gerontechnology.
- This includes medical devices, AI-based caregiving tools, mobility aids, telemedicine, home automation systems, and robotic assistance for elderly care. Such innovations not only improve quality of life but also open new markets and industries
3. What are the merits and demerits in the Silver Economy?
- The Silver Economy has both strong advantages and serious challenges. To explain it in a flowing way rather than points, think of it as a double-edged economic transformation caused by an ageing population.
- The first major merit is that it creates new markets and economic opportunities. As the number of elderly people increases, demand rises for healthcare, medicines, medical devices, insurance, assisted living, age-friendly housing, tourism, and digital services.
- This demand encourages innovation and investment, leading to new industries such as geriatric healthcare, telemedicine, mobility aids, and senior-focused financial products. In many countries, this has become a major source of economic growth and job creation.
- Another important merit is that it recognizes senior citizens as active contributors rather than dependents. Older people today often remain healthy and skilled for a longer period of life.
- Many continue to work, mentor younger generations, invest savings, or start small businesses after retirement. Their experience and accumulated wealth can contribute significantly to productivity and consumption in the economy. This helps change the traditional view that ageing is only a burden.
- The silver economy also promotes social inclusion and better quality of life. When governments and businesses focus on elderly needs, it leads to better healthcare infrastructure, improved public transport, senior-friendly urban design, and digital accessibility. This improves dignity, independence, and social participation for older people.
- However, the demerits are equally significant. One major drawback is the pressure on public finances. An ageing population means higher expenditure on pensions, healthcare, old-age care, and social security.
- If the working-age population shrinks while the elderly population grows, governments may face fiscal stress because fewer workers are supporting a larger retired population through taxes.
- A second challenge is the dependency burden on the workforce. When more people retire and fewer young people enter the labour market, the dependency ratio rises.
- This can slow economic growth, reduce labour supply, and put stress on productivity unless supported by technology and policy reforms.
- Another demerit, especially in countries like India, is the unequal access to silver economy benefits. Urban areas may get advanced hospitals, insurance, and senior services, while rural elderly populations may remain excluded because of poor infrastructure, digital illiteracy, and lack of pension coverage
4. What is the population status of the elderly in India?
- Kerala’s ageing population is no longer a distant demographic possibility but an ongoing and significant shift that is reshaping the state’s social structure. What was once seen as a future trend has now become an immediate reality with wide-ranging implications.
- By the close of 2026, individuals aged 60 years and above are expected to constitute nearly 20 per cent of Kerala’s population, substantially higher than the national average of around 12 per cent.
- Interestingly, this demographic transition is largely the result of Kerala’s long-standing achievements in the fields of healthcare and education, which have contributed to higher life expectancy and declining birth rates.
- However, the existing social support systems and healthcare infrastructure are not adequately prepared to meet the complex and specialised needs of an ageing society. This concern becomes even more serious as older persons increasingly face rising medical expenses, chronic illnesses, and financial insecurity.
- To effectively respond to this emerging “silver sunrise,” Kerala needs to shift from short-term, reactive responses to a long-term strategy that redesigns both its economy and urban spaces in line with the realities of an ageing population.
- If handled effectively, the state can emerge as a model for the rest of India, especially as demographic ageing gradually becomes a national phenomenon in the coming decades.
- Kerala is uniquely positioned to convert what is often viewed as a demographic challenge into a major economic opportunity.
- The state has often been informally described as an “ageing society” because of significant youth migration to other states and countries, leaving behind a relatively older population.
- To turn this challenge into a sustainable driver of growth, Kerala must adopt a multi-layered policy approach to ageing, one that encourages private sector involvement while safeguarding principles of social justice and inclusiveness.
- This would require moving beyond a purely welfare-oriented approach and embracing a silver economy framework, where elderly care and related services are developed as a high-value and growth-oriented sector.
- In this context, Kerala’s natural geography offers a major advantage. Its tranquil coastal belts and the cool, misty, climate-friendly landscapes of the Western Ghats provide ideal locations for developing high-quality retirement communities.
- Such spaces can serve not only the local elderly population but also attract members of the Indian diaspora and international retirees seeking peaceful living environments
5. What Reforms are Needed to Strengthen India’s Silver Economy?
- Strengthening India’s Silver Economy requires a shift from seeing ageing merely as a welfare concern to treating it as a strategic pillar of economic growth, social justice, and human development.
- Since India’s elderly population is expected to rise sharply in the coming decades, reforms must focus on making older persons healthier, financially secure, socially included, and economically productive.
- The first and most urgent reform lies in healthcare transformation. India needs a dedicated geriatric healthcare ecosystem rather than treating elderly care as an extension of general medicine.
- This means expanding geriatric wards in district hospitals, strengthening home-based care, promoting telemedicine, and ensuring regular screening for chronic illnesses such as diabetes, hypertension, arthritis, and dementia.
- Integrating elderly care into Ayushman Bharat and Ayushman Arogya Mandirs would significantly reduce out-of-pocket expenditure and improve access, especially in rural areas.
- A second major reform is financial security and pension expansion. A large proportion of India’s workforce is employed in the informal sector and reaches old age without adequate savings or social protection.
- Therefore, pension schemes such as the Atal Pension Yojana need wider coverage, higher awareness, and better contribution flexibility.
- Insurance products specifically designed for senior citizens, including long-term care and assisted-living coverage, must also be promoted so that old age does not translate into financial vulnerability.
- Another important reform is to create employment opportunities for senior citizens. Many elderly persons remain physically and mentally capable of working but face age-based discrimination and lack of flexible jobs.
- India should encourage part-time work, consultancy roles, mentoring positions, digital freelancing, and re-skilling programmes through platforms such as the SACRED Portal. This will help seniors remain economically independent while also allowing the economy to benefit from their experience and knowledge.
- India also needs reforms in the care economy and skill development sector. A rapidly ageing population requires trained caregivers, physiotherapists, geriatric nurses, and counsellors.
- The recent push to train caregivers is a step in the right direction, but it must be scaled up through vocational institutions and skill missions. This not only supports elderly care but also creates employment for youth, especially women, thereby generating a “double dividend.”
- Urban planning reforms are equally important. India’s cities and towns need to become age-friendly spaces with barrier-free public transport, accessible footpaths, senior-friendly housing, emergency response systems, and community day-care centres. Such reforms are essential for preserving dignity and independent living among senior citizens.
- Finally, India should promote innovation and private investment in elder-tech. Startups working in remote health monitoring, fall-detection devices, smart homes, assistive robotics, and retirement communities should receive policy incentives, tax support, and regulatory clarity. This would help transform the silver economy into a major growth sector
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For Prelims: Economic and Social Development
For Mains: General Studies I: population and associated issues
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Previous Year Questions
1. Consider the following statements with reference to Indira Gandhi National Old Age Pension Scheme (IGNOAPS): (UPSC CSE, 2008)
1. All persons of 60 years or above belonging to the households below poverty line in rural areas are eligible. 2. The Central Assistance under this Scheme is at the rate of `300 per month per beneficiary. Under the Scheme, States have been urged to give matching amounts. 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 (d)
2.Consider the following statements with reference to Indira Gandhi National Old Age Pension Scheme (IGNOAPS): (2008)
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 (d) |
Source: Indianexpress
