Daily News Bytes

Chautal:

stylish_lining

The recent performance of the traditional Bhojpuri Chautal at the welcoming ceremony of India’s Prime Minister in Trinidad and Tobago highlighted the importance of Chautal in Indian classical music, especially in its North Indian and Hindustani classical music forms.

Chautal, also known as Chartaal or Chowtaal, is a rhythmic cycle with 12 beats. It plays a significant role in the accompaniment of Dhrupad and Dhamar styles of both vocal and instrumental performances.

Understanding the Structure of Chautal

  1. Rhythmic Cycle (12 beats):

    • Chautal is based on a cycle of 12 beats, which are broken into different segments known as vibhags. There are two primary schools of thought regarding its structure:

      • First View: It is divided into four vibhags of 4, 4, 2, and 2 matras respectively.

      • Second View: It follows a pattern similar to Ektal, consisting of six vibhags, each containing two matras.

    The cyclic structure and its divisions allow for intricate rhythmic variations, creating a dynamic and powerful atmosphere when performed.

  2. The Meaning of the Name "Chautal":

    • The name "Chautal" translates to "four claps," referring to the clapping method used in the rhythmic division of the beats. The rhythmic cycle often involves counting or clapping at regular intervals, guiding the performer and the audience through the structure.

Chautal in Musical Performance

  • Chautal is often used in the Dhrupad and Dhamar genres, which are ancient forms of Indian classical music. These styles are known for their deep, meditative tones and require a specific rhythmic and melodic framework.

  • Pakhawaj: The rhythm of Chautal is closely associated with the pakhawaj, a traditional Indian percussion instrument. The pakhawaj provides a heavy and powerful sound that contrasts with the lighter and more delicate rhythms played on the tabla.

  • Performance Style: The performance of Chautal is typically heavy and powerful, bringing out the full weight of the beats and their resonance. It is in contrast to the more delicate style of the tabla, a drum that is often used in other classical genres.

Cultural Significance of Chautal

  • Bhojpuri Chautal: Chautal is deeply ingrained in the cultural heritage of regions like Bihar, Uttar Pradesh, and parts of Madhya Pradesh. It’s often performed in various folk traditions in these areas, including Bhojpuri music and regional celebrations.

  • Global Influence: Chautal has crossed borders and continues to influence musical communities worldwide, especially within the Indian diaspora. The performance in Trinidad and Tobago is a testament to how Indian classical traditions, such as Chautal, are carried and cherished beyond India’s borders.


 

Green Climate Fund (GCF)

stylish_lining

The Green Climate Fund (GCF) has recently approved over USD 120 million to support climate resilience projects in Ghana, the Maldives, and Mauritania. This funding aims to assist these countries in building climate resilience and addressing the adverse effects of climate change.

What is the Green Climate Fund (GCF)?

The Green Climate Fund is the world’s largest dedicated fund for addressing climate change and is a critical part of global efforts to mitigate and adapt to climate impacts.

  1. Establishment and Mandate:

    • The GCF was set up at COP 16 in Cancun in 2010 as part of the United Nations Framework Convention on Climate Change (UNFCCC).

    • It was created to help developing countries raise and implement their Nationally Determined Contributions (NDCs) for low-emission and climate-resilient pathways.

    • The GCF’s mission is to accelerate transformative climate action in developing countries using flexible financing solutions and climate investment expertise.

  2. Role in Climate Action:

    • The GCF provides financing to support both mitigation (reducing greenhouse gas emissions) and adaptation (building resilience to climate impacts) projects in developing countries.

    • 50% of its resources are allocated to mitigation and 50% to adaptation, with at least half of the adaptation funds specifically directed towards the most vulnerable countries like Small Island Developing States (SIDS), Least Developed Countries (LDCs), and African States.

  3. Country-Driven Approach:

    • The GCF follows a country-driven approach, meaning developing countries themselves take the lead in designing and implementing their climate actions.

    • The GCF provides resources and expertise, but the country is in charge of how the funds are used, ensuring that the solutions are locally tailored and relevant.

Key Features of the GCF:

  • Independent Institution: The GCF is a legally independent institution, governed by an independent board. It operates through a secretariat based in Songdo, South Korea, which started its work in December 2013.

    Flexible Financing: The GCF offers flexible financial solutions, including grants, loans, equity, and guarantees, to accelerate the implementation of climate projects.

    Global Partnerships: It collaborates with a range of public and private sector actors to pool knowledge and funding for large-scale climate initiatives.

Key Areas of Focus

  • Mitigation:

    • Projects that reduce or eliminate greenhouse gas emissions, helping countries transition to low-carbon economies.

    • Includes areas such as renewable energy, energy efficiency, and sustainable transport.

    Adaptation:

    • Projects that help countries build resilience to climate impacts, such as flood defenses, drought resilience, and agriculture adaptation.

    • The GCF is particularly focused on supporting the most climate-vulnerable countries.

Impact on Developing Countries

  • The GCF plays a pivotal role in the global response to climate change, particularly for developing countries that often lack the resources to address the challenges of a changing climate.

  • By providing financial and technical support, the GCF enables these countries to mitigate climate change, build resilience, and achieve sustainable development goals.

Global Reach: Funding Projects Worldwide

  • Recent Approvals: As mentioned, the GCF recently approved over USD 120 million in new funding for Ghana, the Maldives, and Mauritania. These countries will use the funds to enhance climate resilience and adaptation efforts.

  • GCF Partnerships: The GCF works in collaboration with national governments, private sector entities, and multilateral institutions to ensure comprehensive solutions to the climate crisis.

United Nations Framework Convention on Climate Change (UNFCCC)

The UNFCCC is a key international environmental treaty that addresses the global challenge of climate change. It aims to stabilize greenhouse gas concentrations in the atmosphere and prevent dangerous interference with the climate system.

Key Facts about UNFCCC

  1. Signing & Ratification:

    • Signed: 1992, at the Earth Summit in Rio de Janeiro (also known as the Rio Conference or Rio Summit).

    • Entered into Force: 1994.

    • Ratified by: 197 countries.

  2. Mission:
    The UNFCCC's ultimate goal, as stated in
    Article 2, is to stabilize greenhouse gas concentrations at a level that prevents dangerous anthropogenic interference with the climate system.

    • Time Frame: This should be achieved in a time frame that allows ecosystems to adapt naturally, ensures food production is not threatened, and enables sustainable economic development.

  3. Establishment of the IPCC:
    In
    1988, the World Meteorological Organization (WMO) and UNEP established the Intergovernmental Panel on Climate Change (IPCC). The IPCC assesses the impacts of climate change, presents response strategies, and provides up-to-date interdisciplinary knowledge on climate science.

Institutional Structure of the UNFCCC

  1. The Conference of the Parties (COP):

    • Role: The COP is the supreme decision-making body of the UNFCCC.

    • Function: The COP holds annual sessions where decisions regarding the climate change process are made.

    • COP Presidency: The position of COP President rotates among the five UN regional groups. The President, usually the environment minister of their country, facilitates COP proceedings and promotes agreements among Parties.

  2. Subsidiary Bodies (SBs):
    The UNFCCC has two permanent subsidiary bodies:

    • SBSTA (Subsidiary Body for Scientific and Technological Advice): Provides timely advice to the COP on scientific and technological matters related to the Convention.

    • SBI (Subsidiary Body for Implementation): Assists the COP in assessing and reviewing the effective implementation of the Convention.

  3. The Secretariat:
    The
    UNFCCC Secretariat services the COP, the subsidiary bodies, and other bodies established by the COP. It is based in Bonn, Germany (since 1996), and its role is to coordinate the operations of the Convention.

  4. Other Bodies:
    Various bodies have been set up by the COP to focus on specific issues, and they report back to the COP once their work is completed. For example, the
    Dialogue established at COP 11 helps analyze strategic approaches for long-term climate cooperation.

Timeline of Major UNFCCC Events

  • 1979: First World Climate Conference (WCC).

  • 1988: IPCC established to assess climate change science.

  • 1992: Adoption of the UNFCCC at the Earth Summit in Rio.

  • 1994: UNFCCC enters into force.

  • 1997: COP 3 in Kyoto, Japan: Adoption of the Kyoto Protocol, which legally binds developed nations to emission reduction targets.

  • 2001: COP 6-2 (Bonn, Germany): Significant progress on the operational rules for the Kyoto Protocol.

  • 2007: COP 13 (Bali, Indonesia): Launch of the Bali Road Map for post-2012 climate action.

  • 2009: COP 15 (Copenhagen, Denmark): The Copenhagen Accord is drafted, but failed to achieve a binding agreement.

  • 2015: COP 21 (Paris, France): Adoption of the Paris Agreement, which aims to limit global temperature rise to well below 2°C above pre-industrial levels and pursue efforts to limit it to 1.5°C.

  • 2018: COP 24 (Katowice, Poland): The Paris Rulebook is finalized, clarifying how the Paris Agreement's targets should be met.

  • 2020: COP 25: Discussions on finalizing the Paris Agreement Rulebook and increasing climate ambition.

Key Agreements & Mechanisms

  1. Kyoto Protocol (1997):

    • Legally binding targets for developed countries to reduce greenhouse gas emissions.

    • Established market-based mechanisms like emissions trading, Clean Development Mechanism (CDM), and Joint Implementation (JI).

  2. Paris Agreement (2015):

    • A landmark accord aimed at keeping global temperature rise below 2°C, with an aspiration of 1.5°C.

    • Includes financial commitments from developed countries to support developing nations with $100 billion annually for climate change mitigation and adaptation.

  3. Green Climate Fund (GCF):

    • Established under the Cancun Agreements (COP 16, 2010), the GCF provides financial support to developing countries for climate change adaptation and mitigation projects.

Challenges and Issues Faced by the UNFCCC Process

  1. Disagreements on the IPCC's 1.5°C Report:

    • The U.S., Saudi Arabia, and Russia did not accept the 1.5°C target as a critical benchmark, leading to delays in decision-making.

  2. Equity Issues:

    • Developing countries continue to call for clearer commitments from developed nations regarding the $100 billion/year climate finance pledge.

    • The principle of common but differentiated responsibilities remains a contentious issue, especially regarding financial contributions from wealthier nations.

  3. Market Mechanisms:

    • Negotiations around the carbon markets and carbon credits have been challenging, with developing countries like China, India, and Brazil pushing for the recognition of unused carbon credits under the Kyoto Protocol.

  4. Slow Progress on Targets:

    • While climate change science has advanced, global emission reduction targets have not been met, and some countries, like the United States, have withdrawn from the Paris Agreement, undermining collective efforts.

  5. Financial Constraints:

    • The $100 billion/year funding commitment made by developed nations under the Paris Agreement has not been sufficient for some nations, particularly small island states.

Achievements of the UNFCCC Process

  1. Public Awareness:
    The UNFCCC has significantly raised global awareness of climate change and its impacts, particularly through efforts like the
    Nairobi Work Programme and National Adaptation Programmes of Action (NAPAs).

  2. Market-based Solutions:
    Initiatives like the
    Clean Development Mechanism (CDM) have allowed countries to generate and trade carbon credits to meet emissions reduction targets.

  3. Global Cooperation:
    The UNFCCC has facilitated international partnerships for technology transfer and climate finance, particularly benefiting
    developing countries in addressing climate change.

  4. Paris Agreement:
    The Paris Agreement is a historic breakthrough, representing a global consensus on the need for urgent climate action, with all countries committing to mitigate climate impacts according to their capacities.

India’s Position in the UNFCCC Process

India has consistently advocated for the principle of common but differentiated responsibilities, emphasizing the historical responsibility of developed countries for the majority of greenhouse gas emissions. India's agenda includes:

  • Reaffirming its climate action efforts, which already exceed those of many developed nations.

  • Advocating for equity in climate finance and technology transfer.

  • Reiterating the need for increased funding for climate adaptation in vulnerable countries.

Conclusion: A Crucial Tool in the Fight Against Climate Change

The Green Climate Fund is an essential component in the global response to climate change, providing vital resources to support developing countries. With its flexible financing approach and country-driven programming, it helps nations reduce emissions, adapt to climate impacts, and progress toward a sustainable, climate-resilient future.

 


 


 

Quad Critical Minerals Initiative

stylish_lining

The Quad Critical Minerals Initiative launched by the United States, India, Australia, and Japan marks a significant shift in global geopolitics and economic strategy, especially with regard to critical mineral supply chains. The backdrop of this initiative stems from the growing concern over China's dominant position in the production and processing of rare earth elements (REEs) and other vital minerals that power modern technologies.

Key Highlights:

1. Objective of the Quad Critical Minerals Initiative:

  • Resilient Supply Chains: The initiative aims to diversify and secure supply chains for critical minerals needed in industries like electric vehicles (EVs), semiconductors, and defense technologies.

  • Reduce Dependency on China: Quad nations want to reduce their reliance on China, which currently dominates the global market for critical mineral processing.

  • Enhance Recycling & Innovation: The initiative includes efforts to boost private sector investment and promote the recycling of critical minerals, along with technology development for mineral extraction and processing.

2. China’s Dominance in Critical Minerals:

  • China's Strategic Position: China controls a large percentage of global processing, particularly in rare earth elements like neodymium and praseodymium (used in EV motors, military applications, etc.).

  • Risk of Supply Disruptions: The dependency on China has led to vulnerabilities such as economic coercion, price manipulation, and supply disruptions, especially in the context of rising geopolitical tensions.

3. India’s Struggles with Mineral Supply:

  • Electric Vehicle Setbacks: India's burgeoning electric vehicle industry has faced serious hurdles due to Chinese export restrictions on rare earth minerals, such as the vital neodymium magnets for EV motors.

  • Bureaucratic Hurdles: China's end-user licenses and bureaucratic requirements for approving Indian carmaker applications have further complicated the situation, with India struggling to compete with foreign car manufacturers who have more access to China's supply chain.

4. Quad’s Geopolitical Response:

  • Cooperative Approach: The Quad nations are not only focusing on securing resources but also ensuring that the supply chain remains diversified. This includes international collaboration, research and development (R&D), and investment in sustainable mining practices.

  • Public-Private Collaboration: One of the cornerstones of this initiative is enhancing cooperation between government bodies and private sectors to bring innovation to mining, processing, and recycling efforts.

5. G7 Action Plan & Strategic Partnership:

  • G7 Critical Minerals Action Plan: The Quad initiative is rooted in the commitments made by the G7 in Canada to diversify supply chains and collaborate with emerging markets for mineral extraction and processing.

  • RISE Initiative & World Bank Support: The Resilient and Inclusive Supply Chain Enhancement (RISE) initiative aims to develop secure and sustainable mineral supply chains in partnership with the World Bank. This aligns with Quad's long-term goals.

6. India's National Critical Mineral Mission:

  • Domestic Push for Mineral Security: India is ramping up its efforts to strengthen mineral exploration, research and development, and recycling through its National Critical Mineral Mission, which is backed by a massive ₹16,300 crore investment.

  • Global Partnerships: India has joined the Minerals Security Partnership (MSP) to enhance its global outreach and collaborate with nations like Australia, South Korea, Finland, and Sweden to improve access to critical minerals.

7. The TRUST Agreement Between India and the U.S.:

  • Strategic Technology Partnership: The Transforming Relationship Utilizing Strategic Technology (TRUST) initiative signed during PM Modi’s visit to Washington in 2025 aims to focus on key minerals like lithium and rare earth elements.

  • Co-Develop Extraction Technologies: This partnership will focus on joint technologies for extraction and processing, ensuring that both nations are better equipped to manage critical mineral supplies independently of China.

Implications:

  • Geopolitical Ramifications: This move could reshape the global balance of power in terms of resource access and technological competitiveness, especially as countries like China are cornered into a position where their monopoly on critical minerals could be threatened.

  • Economic Growth for Emerging Markets: The Quad's initiative and related partnerships will likely lead to more investment in mineral-rich developing countries, bringing economic prosperity and infrastructure growth.

  • Environmental Impact: The push for increasing the supply of critical minerals comes with its own environmental risks. Sustainable mining practices, recycling, and tech innovation will be necessary to balance supply needs with ecological preservation.

The Quad Critical Minerals Initiative is an ambitious, multifaceted strategy to ensure that the global supply chains for critical minerals are not only secure but also sustainable and diversified. For countries like India, this initiative promises to bolster energy security, industrial growth, and strategic partnerships in the ever-competitive global market for high-tech minerals.

This effort builds on existing frameworks like the G7 Critical Minerals Action Plan and India’s National Critical Mineral Mission, while also fostering new technological advancements that will help reduce the global over-reliance on China, making the global supply of critical minerals more resilient and diverse.

What Are Critical Minerals?

Critical minerals are resources that are essential for a country’s economic development and national security. They are needed to manufacture high-tech goods, enable the transition to clean energy, and strengthen defense capabilities. These minerals are often in limited supply or concentrated in specific regions, creating risks of supply chain disruptions and geopolitical tensions.

  • Examples: Lithium, cobalt, rare earth elements, nickel, graphite, and gallium are all crucial for the renewable energy transition, EVs, semiconductors, and defense technologies.

  • India's List: India has identified 30 critical minerals, including lithium, cobalt, rare earth elements, and titanium, through a comprehensive process based on resource availability, import dependence, and their role in advancing future technologies and clean energy solutions.

Why Are Critical Minerals Important for India’s Economic Transformation?

  1. Catalyzing Green Energy and EV Transition:

    • Renewable Energy: Minerals like lithium and cobalt are essential for lithium-ion batteries, solar panels, and wind turbines.

    • Electric Vehicles: India's transition to EVs hinges on domestic access to critical minerals, which would help lower battery production costs and make EVs more affordable. The discovery of lithium reserves in Jammu & Kashmir and the Mines and Minerals Amendment Act show India's intention to reduce its reliance on imports.

    • Target: India’s goal to become a net-zero emitter by 2070 means significantly increasing the use of clean energy technologies. The demand for minerals like lithium is projected to increase by 500% by 2050 to meet global Net Zero commitments.

  2. Strategic Autonomy and Reducing Import Dependency:

    • India currently sources 60% of its rare earth minerals from China, making its industries, including defense, vulnerable to supply chain disruptions. Expanding domestic mining operations and refining capabilities will help reduce this dependency and boost self-sufficiency.

  3. Electric Vehicle Ecosystem:

    • India aims to achieve 30% EV penetration by 2030, which would require significant amounts of critical minerals for battery manufacturing. Domestic production would help in reducing costs and improving accessibility.

    • India’s collaboration with Australia through the Critical Minerals Investment Partnership (2022) and efforts like KABIL (Khanij Bidesh India Ltd.) will be vital in securing global mineral supply chains for EVs.

  4. Supporting Semiconductor and High-Tech Manufacturing:

    • Critical minerals are vital for semiconductor production. Rare minerals like gallium and germanium are needed for high-tech devices, making them essential for India’s $10 billion semiconductor initiative. Developing domestic mineral processing would reduce import dependency and position India as a global electronics manufacturing hub.

  5. Job Creation and Economic Growth:

    • Developing critical mineral industries will create a new industrial ecosystem in India, fostering job creation, GDP growth, and reducing regional disparities. Government efforts to attract foreign investments and develop infrastructure in resource-rich areas can help ensure the viability of this sector.

  6. Global Trade Position and Export Growth:

    • With China currently processing 90% of global rare earths, India has an opportunity to enter the market with value-added processed minerals. It can leverage its own reserves and global partnerships to capture global markets and reduce its trade deficit.

Challenges India Faces in Securing Critical Minerals

  1. Overdependence on Imports:

    • India remains heavily reliant on imports, especially from China, for many critical minerals. This dependency exposes India to geopolitical risks and trade barriers, such as China's export restrictions on minerals like germanium.

  2. Limited Domestic Exploration:

    • Exploration gaps and outdated methods hinder India’s ability to capitalize on its reserves. Only 48% of mineral blocks auctioned between 2020-2023 were sold, and many of these lacked the required exploration data, making them unattractive to investors.

  3. Underdeveloped Processing and Refining Capacity:

    • Although India has some critical mineral reserves, it lacks the infrastructure and technology to process these minerals. For example, it has lithium reserves but no domestic refining capacity. This forces India to rely on external players for value-added processing, just as China does for rare earths.

  4. Geopolitical Competition:

    • Resource-rich nations are increasingly entering exclusive agreements for mineral supply with countries like China and the U.S. India’s efforts to secure minerals from countries like Argentina and Australia through KABIL have been slow compared to the aggressive strategies employed by other nations.

  5. Environmental and Social Concerns:

    • Mining operations in ecologically sensitive areas like Jammu & Kashmir raise environmental and social concerns. Local communities may resist mineral extraction, especially in areas with vulnerable ecosystems.

  6. High Upfront Costs and Delayed Returns:

    • The high capital costs required for mining critical minerals, combined with long timelines for transitioning from exploration to production, deter private investment. The delayed returns from such projects can make the sector less attractive to potential investors.

  7. Weak Recycling and Circular Economy:

    • India’s recycling industry is underdeveloped, particularly for e-waste. With India generating millions of tonnes of e-waste annually, there is significant potential for recovering valuable minerals like cobalt and rare earth elements. Developing formal recycling systems can help reduce the need for virgin minerals and increase resource efficiency.

Measures India Can Adopt to Secure Its Critical Mineral Supply Chain

  1. Establish a Unified National Authority:

    • India needs a centralized body to oversee exploration, acquisition, processing, and recycling, ensuring streamlined decision-making and policy coordination across ministries. A Center of Excellence for Critical Minerals (CECM) could facilitate this.

  2. Develop Strategic Stockpiles:

    • India could build stockpiles of high-priority minerals like lithium, cobalt, and gallium to safeguard against global supply disruptions and price fluctuations.

  3. Fiscal Incentives for Exploration and Processing:

    • Providing upfront fiscal incentives (e.g., subsidies, tax rebates, or soft loans) for exploration and processing activities can de-risk investments and attract private players. This model has worked in other sectors, such as semiconductors under the PLI scheme.

  4. Public-Private Partnerships (PPP):

    • India should foster PPPs for mining and refining to leverage advanced technologies, investments, and expertise. Collaborating with global leaders like Australia’s Lynas Rare Earths or Tesla could boost India’s refining capabilities.

  5. Leverage Mineral Diplomacy:

    • India should expand bilateral agreements with resource-rich nations like Australia, Canada, and Chile, focusing on securing stable, diversified mineral supplies. India’s partnership with Australia in 2022 was a step in this direction.

  6. Promote Domestic Manufacturing:

    • India should incentivize domestic manufacturing of EV batteries, solar panels, and other products using critical minerals through dedicated PLI schemes for these sectors.

  7. Invest in Recycling and Circular Economy:

    • India should invest in advanced recycling technologies for e-waste and create formal recycling ecosystems. The introduction of take-back schemes for used electronics could significantly reduce reliance on new mineral supplies.

  8. R&D in Mining and Processing:

    • India must invest in R&D for advanced mining technologies to improve the efficiency of operations, such as AI-based exploration or in-situ leaching, and develop more sustainable processing methods.

     

NITI Aayog's Proposal

stylish_lining

NITI Aayog's proposed roadmap to boost India's chemical exports is a significant step toward enhancing the country's position in global chemical supply chains and addressing existing infrastructure and production bottlenecks.

Key Points from NITI Aayog's Proposal:

  1. Goal to Double Chemical Exports by 2030:

    • India aims to nearly double its chemical exports from the current $44 billion by 2030.

    • The target is to overcome the limitations of domestic demand by tapping into the global market, especially in high-value and high-demand specialty chemicals.

  2. Focus on Production Clusters:

    • India plans to develop new and enhance existing production clusters to scale up production.

    • The key regions for this will be Maharashtra, Gujarat, West Bengal, and Tamil Nadu, which already dominate India’s chemical manufacturing landscape.

  3. Improvement of Infrastructure:

    • A significant focus is on upgrading port infrastructure to streamline logistics and storage.

    • The creation of port-centric clusters will directly support chemical manufacturing, enabling smooth movement of raw materials and finished products.

    • The strategic identification of potential supply chain choke points, similar to China’s approach, will be used to guide targeted investments.

  4. Sales-Linked Incentive Scheme:

    • The scheme, proposed as an operational expenditure (opex) subsidy, is designed to:

      • Encourage the production of critical chemicals locally, thus reducing dependency on imports.

      • Support the expansion of sectors like agrochemicals, pharma intermediates, battery chemicals, dyes, and petrochemicals.

      • Promote exports, particularly in high-value chemical segments.

  5. Specialty Chemicals as a Growth Area:

    • The shift towards specialty chemicals (higher value and more in-demand chemicals) could significantly increase India’s share in global value chains (GVCs).

    • This move aligns with NITI Aayog’s estimate that India could increase its share in global value chains to 5-6% by 2030, up from its current 3.5%.

  6. Challenges and Recommendations:

    • The existing PCPIRs (Petroleum, Chemicals, and Petrochemical Investment Regions) in places like Dahej, Paradeep, and Vizag face challenges related to infrastructure, financing, and regulatory hurdles.

    • Recommendations include revitalizing these regions to make them more attractive for investment, along with a focus on long-term sustainability.

  7. Support for MSMEs and Foreign Investment:

    • The new incentives and infrastructure upgrades are designed not only to attract large corporations but also to give a boost to MSMEs in the chemical sector, which are crucial for production diversity and employment generation.

    • Foreign investments will be encouraged through the establishment of more robust infrastructure and the localization of manufacturing.

Current Standing:

  • 6th Largest Chemical Producer Globally: India is among the top producers in the world, reflecting a strong presence in various sectors like bulk chemicals, petrochemicals, and agrochemicals.

  • 3rd Largest in Asia: India stands as the third-largest producer in Asia, following China and Japan, two chemical industry giants.

  • Contribution to GDP: The sector contributes 7% to India’s national GDP, a sizable share that highlights its importance to the economy.

  • Chemical Exports: India ranks 14th in global chemical exports (excluding pharma), with major chemical and petrochemical exports totaling $23.8 billion in FY23.

  • Trade Deficit: India faces a $31 billion trade deficit in chemicals, signaling a significant gap between domestic production and import reliance.

  • Global Value Chain Share: India holds only 3.5% of the global chemical value chain, a fraction of China's 23%. This highlights the untapped potential for growth and export diversification.

Ambitious Growth Target:

  • Market Value in 2023: The chemical market was valued at $220 billion in 2023.

  • Target for 2040: The goal is to reach $1 trillion by 2040, a growth of over 4.5 times the current size. This is an ambitious target but feasible with the right strategies and infrastructure investments.

Government Initiatives for the Chemical Sector:

  • The Chemical Promotion and Development Scheme (CPDS), which facilitates knowledge dissemination and research, is essential to driving innovation and enhancing sectoral capabilities.

  • Under the PCPIR Policy (2020–2035), the government has set ambitious investment targets—reaching $142 billion by 2025 and potentially scaling to $284 billion by 2035.

  • De-licensing of the chemical sector (except hazardous chemicals) is another step that has helped make the sector more dynamic.

Challenges India Faces in the Chemical Export Sector:

  1. Trade Deficit in Chemicals:

    • India faces a $31 billion trade deficit in chemicals (FY23), highlighting the need for both domestic production and export enhancements.

  2. Heavy Dependency on Imports:

    • Key chemicals, such as those used in pharma intermediates and agrochemicals, are often imported, and shifting this dependency is critical for India’s chemical industry to become more competitive.

  3. Infrastructure and Logistics Bottlenecks:

    • Despite its considerable production capacity, India’s chemical industry faces logistical issues, especially when it comes to handling bulk chemicals, particularly at ports.

  4. Domestic Demand Not Sufficient:

    • Limited domestic demand, as emphasized in the report, is a constraint that NITI Aayog plans to address by tapping into the global export market, especially in specialty chemicals.

Actionable Steps and Strategy Going Forward:

  1. Focus on Niche Specialization:
    India should build on its strength in specialty chemicals, agrochemicals, and polymers, areas where it has established itself as a global leader.

  2. Strategic Partnerships:
    Encouraging joint ventures and collaborations with international players in the specialty chemicals sector will enable technology transfer, enhance expertise, and improve market access.

  3. Sustainability and Green Chemistry:
    As global industries and consumers are increasingly prioritizing sustainability, India can carve out a niche in green chemistry, which focuses on producing chemicals with minimal environmental impact.

  4. Investment in Skill Development:
    The sector will need a skilled workforce for the increased demand for chemicals. Developing vocational training programs and research hubs could help India meet this demand.

Concluding Thoughts:

NITI Aayog’s proposal offers a strategic roadmap for transforming India’s chemical industry from being heavily import-dependent to becoming a major global player, particularly in high-demand specialty chemicals. By focusing on production clusters, infrastructure upgrades, and new policy frameworks like the sales-linked incentive scheme, India is positioning itself to take advantage of the expanding global demand for chemicals in areas like clean energy, pharma, and advanced manufacturing.


 

One Big Beautiful Bill Act

stylish_lining

The newly introduced 1% tax on outbound remittances under the One Big Beautiful Bill Act (OBBBA) by the United States has raised concerns about its potential impact on global remittance flows, particularly for countries like India, which are major recipients of remittances

Key Features of the US Remittance Tax:

  1. Tax Introduction:
    • A 1% tax on certain outbound remittances from the United States will come into effect starting January 1, 2026. Initially, there was a proposal for a 5% tax, but it was revised to 1% after bipartisan discussions.
  2. Scope of the Tax:
    • The tax applies to physical transfer methods, including cash, money orders, and cashier's checks. This means that bank account transfers or digital payments made via debit/credit cards are exempt.
    • Small transactions under $15 will not be taxed.
    • US citizens sending remittances are not subject to the tax.

Exemptions and Mitigation:

  • Bank Transfers and Digital Methods Exempted: This is the key point that will alleviate the tax’s impact for most remitters who use digital or formal channels for sending money. India, as the largest recipient of remittances globally, relies heavily on such channels, especially for Indian-origin expatriates using bank transfers or digital payment methods.
  • Small Transactions Exempt: The tax does not apply to smaller remittance amounts under $15, which is significant for lower-income families who may rely on frequent but smaller remittance transfers.

Impact on India’s Remittance Economy:

India is the largest recipient of remittances globally, and a major portion of these come from the United States.

  1. Potential Loss in Remittance Inflows:
    • According to the Centre for Global Development, India may lose just under $500 million in formal remittance inflows due to the tax.
    • While this may seem like a minor sum relative to India’s overall remittance receipts of $124.31 billion in FY2024-25, the tax could still influence the transaction costs for many families, especially in rural regions reliant on cash-based transfers.
  2. Proportion of US Remittances:
    • Remittances from the US accounted for 27.7% of India’s total remittance inflows, amounting to around $32 billion in 2023-24.
    • Even though the proportion of cash-based transfers is low, the tax may marginally increase transaction costs for these transfers, which could impact poorer households.
  3. Macroeconomic Importance of Remittances:
    • Remittances play a crucial role in India’s economy. Not only do they cover the entire trade deficit of $98.39 billion, but they also result in a $26 billion surplus.
    • The growth in remittances (up 16% year-on-year) reflects their increasing importance in financing India’s current account balance and ensuring financial stability.

Distributional and Timing Effects:

  • Frontloaded Impact: Economists predict that the impact of the tax will be frontloaded into the first three quarters of FY2025-26, as senders might try to advance their transfers to avoid the tax. This could lead to an increased flow of remittances in 2025 before the tax takes effect.
  • However, since the tax is relatively low (1%), the long-term impact will likely remain limited and primarily manifest in higher transaction costs rather than significant reductions in remittance volumes.

Broader Trends in Remittance Flows:

  • India’s Remittance Growth:
    • India’s gross remittances have been steadily increasing, with $132.07 billion received in FY2024-25, reflecting a 14% growth over the previous year.
    • US share of remittances has grown from 22.9% in 2016-17 to 27.7% in 2023-24, further underscoring the importance of US-based remittances in supporting India’s economy.
  • Cost of Sending Money:
    • Even before the new tax, sending money to India was already expensive. The average cost of sending $200 to India in Q4 2024 was 5.3%, compared to the global average of 6.6%. This indicates that transaction costs for remitters from the US were relatively lower compared to other corridors, though still significant.
    • The 1% tax could further increase these costs, especially in channels involving intermediaries or non-bank methods, which are often more expensive.

India’s Response: Mitigating the Impact

  1. Payment Infrastructure:
    India has already made significant strides in improving its cross-border payment infrastructure. For example:
    • UPI-PayNow Link: India has partnered with Singapore for seamless cross-border payments, reducing remittance costs.
    • Project Nexus (RBI and BIS): This initiative aims to enable cheaper, faster, and more transparent global transfers, which will help mitigate the impact of new tax measures and facilitate better cross-border remittance flows.
  2. Encouraging Digital Transfers:
    India’s efforts to encourage digital remittance channels, which are exempt from the tax, will be crucial. Digital payment platforms, such as UPI, IMPS, and RTGS, can play a significant role in circumventing the tax and ensuring cost-efficient and timely transfers.
  3. Policy Response and Diplomacy:
    India may also engage in diplomatic efforts with the United States to either:
    • Reduce the scope of the tax on remittances,
    • Or explore mutual agreements to minimize transaction costs through better infrastructure and regulatory alignment.

Conclusion:

While the 1% tax on outbound remittances from the US under the One Big Beautiful Bill Act may slightly increase costs for Indian remitters, the overall long-term impact on India’s remittance inflows is expected to be marginal. The exemption for digital channels and smaller transactions will protect most remitters from this tax. Moreover, India's ongoing efforts to enhance payment infrastructure and encourage digital remittance methods will help offset the negative effects of this tax

 

pulse cultivation

stylish_lining

The Department of Consumer Affairs, under the Ministry of Consumer Affairs, Food and Public Distribution, has launched an important initiative to promote pulse cultivation in India, especially to address surging imports and growing domestic demand.

Key Highlights and Government Initiatives:

  1. Launch of Pulse Cultivation Campaign:

    • The campaign's aim is to boost domestic production of pulses, especially arhar (tur) and urad, which are in high demand both for consumption and import substitution.

    • Targeted Implementation: The National Cooperative Consumer’s Federation of India Ltd. (NCCF) will oversee the campaign. After a successful pilot in Jharkhand, the initiative will be expanded to 12 districts across seven states:

      • Jharkhand: Palamu, Latehar, Garhwa

      • Uttar Pradesh: Mirzapur, Lalitpur

      • Bihar: Gaya, Jehanabad

      • Karnataka: Vijaypura

      • Other States: Manipur and Tripura (districts not specified)

    • District Selection Criteria: The focus will be on rainfed areas and Aspirational Blocks as identified by NITI Aayog to maximize agricultural impact in underdeveloped regions.

  2. Financial and Procurement Support:

    • The government has allocated ₹1 crore for seed distribution as part of the initiative.

    • A 100% procurement guarantee has been offered at the Minimum Support Price (MSP) if the market price falls below the prescribed level.

    • MSP for the Kharif Season 2025-26:

      • Arhar (Tur): ₹8,000/quintal

      • Urad: ₹7,800/quintal

Pulse Production and Trade Trends:

  1. Overview:

    • Pulses, particularly arhar (tur) and urad, are vital sources of protein in India’s predominantly carbohydrate-rich diet.

    • India is the largest producer of pulses globally, contributing significantly to world pulse production.

  2. Domestic Production Trends:

    • India's pulse production has grown from 163.23 lakh tonnes in 2015–16 to 244.93 lakh tonnes in 2023–24.

    • Major pulse-producing states include:

      • Madhya Pradesh (MP)

      • Maharashtra

      • Rajasthan

      • Uttar Pradesh (UP)

      • Karnataka

      • Tamil Nadu

      • Kerala

      • West Bengal

  3. Import-Export Data:

    • India's dependence on pulse imports has grown significantly, as seen in the following import-export trends:

      • 2021-22: Imports = 26.99 lakh tonnes, Exports = 3.87 lakh tonnes

      • 2022-23: Imports = 24.96 lakh tonnes, Exports = 7.62 lakh tonnes

      • 2023-24: Imports = 47.38 lakh tonnes ($5 billion), Exports = 5.94 lakh tonnes ($686.9 million)

    • Notably, imports doubled in 2023–24, underlining the rising dependency on foreign sources.

  4. Import and Export Destinations:

    • Major Import Countries: Canada, Australia, Myanmar, Mozambique, Tanzania

    • Key Export Destinations: Bangladesh, China, UAE, USA, Sri Lanka

Policy Support for Pulse Cultivation:

  1. Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA):

    • Under the Price Support Scheme (PSS), the government procures pulses at MSP.

    • Procurement Limit Removal: During 2023–24 and 2024–25, the government lifted the 25% procurement limit for pulses like Tur, Masoor, and Urad, ensuring better procurement and market stability.

  2. National Food Security Mission (NFSM):

    • Aimed at enhancing foodgrain production, including pulses, across 28 states and 2 Union Territories (J&K and Ladakh).

  3. Crop Diversification Programme (CDP):

    • Aimed at shifting from water-intensive crops like paddy to pulses and oilseeds in states like Haryana, Punjab, and Western Uttar Pradesh, helping ensure better resource allocation and resilience.

  4. Rashtriya Krishi Vikas Yojana (RKVY):

    • Provides states with flexibility to address regional agricultural needs, including specific initiatives for pulse promotion.

Impact and Objectives of the Programme:

  • Reducing Import Dependence: The surge in pulse imports, particularly from Canada, Myanmar, and Australia, has been a growing concern for India's food security and self-sufficiency. By promoting domestic pulse cultivation, the government hopes to significantly reduce import reliance.

  • Enhancing Food Security: Pulses are a vital source of protein, and improving domestic production can contribute to better nutrition security for the population, especially for vulnerable groups.

  • Strengthening Rural Livelihoods: The focus on rainfed and aspirational areas will not only help in boosting production but also create economic opportunities in rural and underdeveloped regions, thereby supporting the rural economy.

  • Improving Market Stability: The MSP guarantee ensures that farmers are not exposed to significant price fluctuations, which often result in their financial instability, especially when market prices fall below production costs.

Pulses Production in India:

India, historically the largest producer of pulses globally, has been grappling with a decline in pulse production in recent years. According to the Department of Agriculture and Farmers' Welfare, production dropped significantly in the 2023-24 crop year, from 260 lakh tonnes in 2022-23 to about 234 lakh tonnes in 2023-24, reflecting a decline of around 10% compared to the previous year. This reduction in production follows a drop from 273 lakh tonnes in 2021-22, pointing to a continuous downward trend.

Decline in Cultivation of Major Pulses:

  • Moong (green gram) saw a sharp drop of over 40% in acreage and a 60% decline in output.

  • Urad (black gram) also witnessed a 20% fall in both acreage and output, largely attributed to deficit rainfall in major producing states.

  • Chana and tur saw smaller declines in acreage (2.6% and 0.6%, respectively), but their output remained nearly constant compared to previous years.

Price Disparities:

The rise in pulse prices has not been uniform:

  • Tur prices saw a steep rise of 30-40%.

  • Moong and Urad had a relatively smaller rise of 10-14% over the same period.

This uneven price surge has implications for affordability, with poorer households being hit hardest by the increased cost of protein-rich pulses.

Impact on Protein Accessibility:

The increasing price of pulses has a direct impact on the poor, as pulses are a crucial source of protein in a predominantly carbohydrate-heavy diet. A steep rise in their prices further exacerbates the challenges faced by low-income households.

Persistent Lag in Meeting Demand:

Despite the rise in domestic pulse production over the last decade (from 171 lakh tonnes in 2014-15 to 234 lakh tonnes in 2023-24), India still lags behind demand. This discrepancy in supply and demand is a chronic issue, resulting in increased imports to meet the deficit.

Rising Reliance on Imports:

India's dependence on pulse imports has grown significantly, especially in the face of declining domestic production. The data from the Commerce Ministry reveals a sharp 60% increase in pulse imports in 2023-24:

  • Imports: 32.5 lakh tonnes (up from 20.3 lakh tonnes in the previous year)
    This highlights the growing challenge for India to balance domestic supply and external sourcing.

Challenges in Pulse Imports:

  1. Limited Short-Term Import Options:

    • India is both the largest producer and consumer of pulses, making it difficult to quickly augment supplies from other countries in the short term.

  2. Traditional Import Sources:

    • Myanmar has been a major source of tur, moong, and urad pulses.

    • For peas, the primary suppliers have been Canada and Australia.

  3. Emerging Import Sources:

    • Countries like Tanzania, Mozambique, Malawi, and Kenya have recently become emerging suppliers.

  4. Price Fluctuations in Exporting Countries:

    • The shortages in India can result in higher prices in the exporting countries, which impacts the cost competitiveness of imports.

Per Capita Availability of Pulses:

The per capita availability of pulses has steadily declined, from 25 kg in 1961 to 16 kg in 2021. This sharp drop highlights the long-term structural issues in the pulses sector, including:

  • Sluggish growth in production since the 1960s,

  • A shift in cropping patterns,

  • Low irrigation levels in pulse-growing areas.

Shifting Cropping Patterns:

  • Irrigated Areas: There has been a notable shift from cereal-pulse cropping to cereal-cereal cropping, especially in irrigated areas. This shift has been particularly visible in states like Punjab, Haryana, and Uttar Pradesh, where water-intensive crops like wheat and rice dominate, and the area under pulse cultivation has been shrinking.

Irrigation Disparity:

  • Irrigation coverage:

    • Sugarcane: 96% irrigated

    • Wheat: 95% irrigated

    • Rice: 65% irrigated

    • Pulses: Only 23% irrigated

This low irrigation coverage in pulse-growing regions is a major reason for lower yields and lower output.

Conclusion:

The government’s targeted program to promote pulse cultivation is a strategic step towards ensuring food security, reducing import dependency, and improving rural livelihoods in India. With financial support, procurement guarantees, and policy initiatives, this program has the potential to bolster domestic production of pulses, helping to meet the increasing demand while safeguarding farmers' interests. This is a timely move to address the growing challenge posed by rising pulse imports and to enhance India’s agricultural self-sufficiency.


 

Other Related News

08 July,2025

Roll Cloud

The recent appearance of a roll cloud over Portugal’s coast during a heatwave is an intriguing weather event that highlights the complex dynamics of cloud formations and extreme weather.
Share It

SAKSHAM-3000

The launch of the SAKSHAM-3000, a high-capacity switch-router by the Minister of State for Communications and Rural Development, marks a significant step in India's push for self-reliance in d
Share It

PARAKH

The launch of the PARAKH Rashtriya Sarvekshan Dissemination Portal is a significant step toward enhancing education outcomes and addressing learning gaps across India. PARAKH Rashtriya Sarveksh
Share It

Apache AH-64E

The Apache AH-64E attack helicopters are a major addition to India's military capabilities, offering cutting-edge technology and multi-role combat capabilities. Apache AH-64E Attack Helicop
Share It

Garcinia kusumae

The discovery of Garcinia kusumae adds another exciting chapter to the rich botanical diversity of Assam. This species, named after Jatindra Sarma’s late mother, Kusum Devi, is an excellent
Share It

Gaden Phodrang Trust

The announcement by the 14th Dalai Lama about the continued institution of the Dalai Lama and the Gaden Phodrang Trust being the sole authority to recognize the future reincarnation is highly sign
Share It

Grand Ethiopian Renaissance Dam (GERD)

The completion of the Grand Ethiopian Renaissance Dam (GERD) marks a major milestone for Ethiopia and is a significant development in Africa’s energy infrastructure. However, it remains a hi
Share It

Vector-Borne Diseases

Vector-borne diseases are illnesses caused by pathogens (viruses, bacteria, or parasites) that are transmitted to humans and other animals by vectors, such as mosquitoes, ticks, fleas, and flies.
Share It

Alaknanda River

The Alaknanda River is a vital and revered river that flows through the state of Uttarakhand, India. It holds immense spiritual and geographical significance, forming one of the two main headstrea
Share It

Gini Coefficient

The Gini coefficient is a key measure used in economics to quantify income inequality within a country or region. Developed by the Italian statistician Corrado Gini, it serves as an essential tool
Share It

Onge Tribe

The Onge tribe, one of the most ancient and primitive tribes of India, is a fascinating yet vulnerable community that resides on Little Andaman Island. Recently, the Andaman and Nicobar Islands ad
Share It

Nipah Virus

Nipah Virus (NiV) is an emerging zoonotic virus that poses a serious health risk due to its high mortality rate and ability to spread through both animal-to-human and human-to-human transmission.
Share It

WHO’s "3 by 35" Initiative

The World Health Organization (WHO) recently launched the "3 by 35" initiative, which aims to reduce the harmful consumption of tobacco, alcohol, and sugary drinks globally. This is part
Share It

07 July,2025

NCB Busts Darknet Drug Syndicate

The Narcotics Control Bureau (NCB) has reported a major crackdown by its Kochi Zonal Unit, claiming it has dismantled India’s most prolific darknet drug syndicate, operating under the alias
Share It

Bond Yield

According to Bank of Baroda Research, the yield on India’s benchmark 10-year government bonds is expected to stay soft (low) in July. This indicates stable or easing borrowing costs for the
Share It

Sinking Kariyachalli Island

The Tamil Nadu government has recently launched an initiative to save Kariyachalli Island, which is sinking due to rapid erosion, rising sea levels, and the degradation of surrounding ecosystems,
Share It

Detection of Liver Cancer Using Terbium

Scientists at the Indian Institute of Science (IISc) have developed a simple and innovative glowing paper sensor that could help in the early detection of liver cancer. The sensor uses a green glo
Share It

Discovery of Facciolella smithi

Indian scientists have recently made a significant marine discovery—a new species of deep-sea eel called Facciolella smithi, or Smith’s witch eel, found in the Arabian Sea. The discove
Share It

VWAP for Institutional Investors

In a move aimed at making trading more transparent and efficient for institutional investors and market participants, SEBI (Securities and Exchange Board of India) has mandated the issuance of a C
Share It

White-Eared Night Heron Captured in Namdapha National Park

In a remarkable discovery, the white-eared night heron, an elusive and endangered bird species, has been camera-trapped in Namdapha National Park and Tiger Reserve in Arunachal Pradesh. This marks
Share It

Santhal Rebellion (Hul) - 170th Anniversary

On June 30, 2025, India marked the 170th anniversary of the Santhal Rebellion, or Hul, which began in 1855 and was one of the earliest tribal uprisings against British colonialism. The Santhal Reb
Share It

Genome Sequencing

The recent sequencing of the oldest ancient Egyptian genome, dating back 4,500 to 4,800 years, is a groundbreaking achievement in the field of genomics. About the Genome: A genome is the com
Share It

RECLAIM Framework

The RECLAIM Framework is an important initiative launched by the Coal Ministry to ensure that mine closures in India are managed in a sustainable and just manner, addressing the socio-economic cha
Share It

Financial Fraud Risk Indicator (FRI)

Recently, the Reserve Bank of India’s (RBI) directed all Scheduled Commercial Banks, Small Finance Banks, Payments Banks, and Co-operative Banks to integrate the Financial Fraud Risk Indicat
Share It

Very Massive Stars

Very Massive Stars, sometimes referred to as Very Luminous Stars, are celestial giants that possess over 100 times the mass of the Sun. These stars are critical to our understanding of the evoluti
Share It

Newsletter Subscription


ACQ IAS
ACQ IAS