News At a Glance

Economy: India’s Cotton Sector: Challenges, Policy Measures, and Implications of Import Duty Withdrawal

Polity and Governance: Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)

Environment and Ecology: Coal Operations in India: Environmental and Health Implications

Science and Technology: India’s Second Space Launch Complex at Kulasekarapattinam

UN General Assembly Launches Two New Initiatives to Strengthen Global AI Governance

Modern History: Swadeshi in India: A Detailed Historical Overview

India’s Cotton Sector: Challenges, Policy Measures, and Implications of Import Duty Withdrawal

Source: The Hindu

UPSC Relevance: GS3 Economy

Context: India’s Cotton Sector

Why in News

India withdraws the 11% cotton import duty till September 30, 2025, amid declining domestic production and rising imports, affecting farmers and the textile industry.

Introduction

• Cotton, the primary raw material for India’s textile industry, is cultivated by nearly six million farmers across the country.
• It plays a crucial role in both rural livelihoods and the industrial textile value chain.
• However, in recent years, domestic cotton production has declined sharply, creating challenges for the textile sector and prompting the government to adjust import duties to balance the interests of farmers and industry.

Why the Import Duty was Introduced

In the 2021 Union Budget, Finance Minister Nirmala Sitharaman announced an 11% import duty on cotton. At that time:

• India’s annual production was approximately 350 lakh bales, slightly higher than the domestic requirement of 335 lakh bales.
• Despite being a net exporter of cotton, India was still importing cotton, which raised concerns about protecting domestic farmers.
• The duty was intended to shield Indian cotton growers from international competition and ensure that domestic prices remained profitable.

(Image Source: The Hindu)

Previous Measures to Address Raw Material Shortage

Despite the duty, cotton imports increased sharply due to industry demand:

• In April 2022, the government exempted all varieties of cotton from import duty to alleviate raw material shortages faced by textile manufacturers.
• The exemption initially lasted until September 30, 2022, and was later extended to October 31, 2022.
• According to the Global Trade Research Initiative, cotton imports surged 107.4%, increasing from $579.2 million in FY2023-24 to $1.20 billion in FY2024-25.

Current Situation

Domestic Production:

• The 2024-25 cotton season saw production decline to 294 lakh bales, the lowest in 15 years, against a requirement of 318 lakh bales (including non-mill use).
• Production is 20 lakh bales lower than the previous season.

Imports:

• To meet demand, India is expected to import about 40 lakh bales, primarily from:
  • Australia ($258.2 million)
  • U.S. ($234.1 million)
  • Brazil ($180.8 million)
  • Egypt ($116.3 million)

Government Support:

• The Cotton Corporation of India (CCI) purchased 100 lakh bales at Minimum Support Price (MSP), spending ₹37,500 crore, and has sold 73 lakh bales in the market.
• For the 2025-26 season, starting October 1, the MSP has been increased by 8% to incentivize farmers.

Market Timing:

• Northern states will start supplying cotton in October, while central and western states are expected to start after Deepavali.

Implications of the Import Duty Withdrawal

On August 18, 2025, the government announced the withdrawal of the 11% import duty until September 30, coinciding with the end of the current cotton season.

For the Textile Industry:

• Only about 2 lakh bales of imported cotton will be available duty-free by the end of the season.
• Textile exporters gain a level playing field, as the removal of duty reduces raw material costs, enhancing their competitiveness in the international market.
• International brands and garment manufacturers, who rely on global cotton suppliers, are expected to benefit.

For Cotton Farmers:

• Farmers expressed concerns that duty removal discourages domestic cultivation, as cheaper imported cotton could reduce domestic prices.
• According to farmer representatives, the benefit to growers is minimal, as there is no additional support provided by the government.

Long-term Policy Solutions

The industry advocates two major government interventions:

1. Stable Policy Framework:
   • A predictable cotton import duty policy is essential for mills to plan procurement efficiently.
   • One suggestion is to suspend import duty during the non-peak season (April to September), when farmers have already sold most of their produce.
2. Financial Support for Mills:
   • 5% interest subvention for working capital during the peak cotton season can help mills, particularly MSMEs, secure adequate raw material.
   • Adequate financing reduces reliance on government MSP purchases, thereby reducing the fiscal burden.

Conclusion

• India’s cotton sector is at a critical juncture. The withdrawal of import duty temporarily eases raw material costs for the textile industry but raises concerns for cotton farmers.
• A balanced, long-term strategy combining stable policy, financial support for mills, and incentivization for farmers is crucial to secure sustainable growth in both agriculture and the textile industry.
• This case highlights the delicate balance between farmer welfare, industrial competitiveness, and fiscal policy, a recurring theme in India’s agricultural and trade policy framework.

CARE MCQ

UPSC PYQ

Q1. Consider the following statements regarding the recent withdrawal of cotton import duty in India: The import duty was initially introduced to protect domestic cotton farmers. Domestic cotton production in 2024-25 fell below domestic requirement for the first time in 15 years. The withdrawal of import duty is expected to reduce raw material costs for textile exporters. Which of the statements given above is/are correct? A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) 1, 2, and 3

Q.   A state in India has the following characteristics: (2011) Its northern part is arid and semi-arid. Its central part produces cotton. Cultivation of cash crops is predominant over food crops. Which one of the following states has all of the above characteristics? (a) Andhra Pradesh (b) Gujarat (c) Karnataka (d) Tamil Nadu Ans: (b)

Answer 1- B Explanation Statement 1 is correct: The import duty on cotton was introduced in February 2021 to protect domestic cotton farmers from cheaper imports, ensuring better prices and encouraging cultivation. Statement 2 is incorrect: While domestic cotton production in 2024-25 declined to 294 lakh bales against a requirement of 318 lakh bales, it is not the first time in 15 years that production fell below requirement. Previous seasons have seen lower production as well, making the “first time in 15 years” claim inaccurate. Statement 3 is correct: The withdrawal of the import duty reduces the cost of imported cotton, benefiting textile exporters and improving their competitiveness in international markets. Therefore, option B is the correct answer.

Union Cabinet has extended and restructured the PM SVANidhi scheme till 2030

Source: Indian Express

UPSC Relevance: GS2 Polity and Governance

Context: PM SVANidhi

Why in News

The Union Cabinet has extended and restructured the PM SVANidhi scheme till 2030, enhancing loans and promoting digital transactions to empower street vendors.

Introduction

• The Union Cabinet recently approved the restructuring and extension of the Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme.
• Launched in 2020 during the COVID-19 pandemic, the scheme aimed to provide affordable working capital to street vendors whose livelihoods were severely impacted by lockdowns and restricted economic activity.
• The restructuring extends the scheme till March 31, 2030, with enhanced financial support and additional benefits.

Objectives of the Scheme

• To provide financial assistance to street vendors for business revival and expansion.
• To promote digital transactions through cashback incentives.
• To integrate street vendors into the formal urban economy, fostering financial inclusion.
• To ensure socio-economic upliftment of vendors and their families.

(Image Source: Indian Express)

Key Features of the Restructured Scheme

1. Extension of Scheme Duration:
   • Original expiry: December 31, 2024
   • Extended till: March 31, 2030
   • Expected beneficiaries: 1.15 crore, including 50 lakh new vendors.
2. Enhanced Loan Amounts:

Tranche	Original Amount	Revised Amount
First	Rs 10,000	Rs 15,000
Second	Rs 20,000	Rs 25,000
Third	Rs 50,000	Rs 50,000 (unchanged)

1. Coverage Expansion:
   • Now includes census towns, peri-urban areas, and other urban localities beyond statutory towns.
2. Digital Incentives:
   • Cashback of up to Rs 1,600 for retail and wholesale digital transactions.
   • Provision of UPI-linked RuPay Credit Card for vendors repaying the second tranche.
3. Implementation:
   • Coordinated by the Ministry of Housing and Urban Affairs (MoHUA) and the Department of Financial Services (DFS).
   • Sequential tranche system encourages repayment and responsible borrowing.

Financial Outlay and Achievements

• Total outlay of Rs 7,332 crore for the restructured scheme.
• As of July 30, 2025, 96 lakh loans worth Rs 13,797 crore had been disbursed to 68 lakh street vendors.
• The scheme facilitates micro-enterprise growth and promotes a self-sustaining urban ecosystem.

Significance for Inclusive Urban Development

• Supports economic resilience among informal sector workers.
• Enhances financial inclusion and digital adoption.
• Encourages sustainable urban growth and vibrant city economies.
• Empowers vendors socially and economically, ensuring a long-term positive impact on livelihoods and urban planning.

Conclusion

• The restructured PM SVANidhi scheme represents a holistic approach towards street vendor empowerment.
• By combining enhanced credit support, digital incentives, and expanded coverage, the initiative not only strengthens urban micro-economies but also promotes inclusive, sustainable, and financially resilient urban development in India.

CARE MCQ

UPSC PYQ

Q2. Consider the following statements regarding the PM SVANidhi Scheme: It was launched in 2020 to provide affordable working capital to street vendors affected by the COVID-19 pandemic. The restructured scheme has increased the first tranche of loan from Rs 10,000 to Rs 15,000 and the second tranche from Rs 20,000 to Rs 25,000. The scheme is implemented exclusively in statutory towns and does not cover census or peri-urban areas. Vendors repaying the second tranche become eligible for a UPI-linked RuPay Credit Card and digital cashback incentives. Which of the statements given above are correct? A) 1, 2 and 3 only B) 1, 2 and 4 only C) 2, 3 and 4 only D) 1, 3 and 4 only

Q.   Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?(2020) Working capital for maintenance of farm assets Purchase of combine harvesters, tractors and mini trucks Consumption requirements of farm households Post-harvest expenses Construction of family house and setting up of village cold storage facility Select the correct answer using the code given below: (a) 1, 2 and 5 only (b) 1, 3 and 4 only (c) 2, 3, 4 and 5 only (d) 1, 2, 3, 4 and 5 Ans: (b)

Answer 2- B Explanation Statement 1 is correct: The PM SVANidhi scheme was launched in 2020 as a part of the government’s economic relief package during the COVID-19 pandemic. It aims to provide affordable working capital loans to street vendors whose livelihoods were severely impacted. Statement 2 is correct: Under the restructured scheme, the first tranche of loan has been increased from Rs 10,000 to Rs 15,000 and the second tranche from Rs 20,000 to Rs 25,000, enhancing financial support for business revival and expansion. Statement 3 is incorrect: The scheme is not limited to statutory towns; it has been expanded to cover census towns, peri-urban areas, and other graded urban areas to promote wider financial inclusion. Statement 4 is correct: Vendors who repay the second tranche become eligible for a UPI-linked RuPay Credit Card and can avail digital cashback incentives for retail and wholesale transactions, encouraging digital adoption and financial literacy. Therefore, option B is the correct answer.

Coal Operations in India: Environmental and Health Implications

Source: Down To Earth

UPSC Syllabus Relevance: GS3 Environment and Ecology

Context: Environmental impact of Coal Operations

Why in News

A recent Vikalpa report highlights the environmental, health, and social impacts of coal operations in India.

Introduction

• India’s energy landscape continues to rely heavily on coal, despite ambitious efforts to transition toward renewable energy.
• According to recent data, coal and lignite-based power constituted 73% of India’s electricity generation in 2022–23 and is projected to remain at around 50% by 2031–32.
• This underscores that coal will continue to play a dominant role in India’s energy security for the foreseeable future.
• However, coal mining and coal-based power generation are associated with severe environmental, health, and social challenges.
• Recognising these concerns, a new report titled Regulating Coal Operations: Environmental and Social Impacts through the Lens of the National Green Tribunal was released by non-profit Vikalpa on August 26, 2025. The study, authored by Shripad Dharmadhikari and Kush Tanwani, analyses eight National Green Tribunal (NGT) cases concerning coal operations.

(Image Source: Down To Earth)

Environmental Impacts of Coal Operations

Coal extraction and utilisation generate both direct and indirect environmental consequences:

1. Air Pollution: Coal transportation, storage, and handling release coal dust, increasing PM10 levels up to five times the permissible limits (460 μg/m³) in some areas. Thermal power plants also emit particulate matter, sulphur dioxide, nitrogen oxides, and heavy metals.
2. Water Contamination: Improper disposal of fly ash and wastewater pollutes rivers, canals, and groundwater. For example, Ennore in Tamil Nadu experienced river clogging and flood risks due to fly ash deposition.
3. Soil Degradation: Fly ash disposal can poison agricultural land, reduce soil fertility, and disrupt biodiversity. Ash dyke breaches in certain regions destroyed farmland and fishery resources.
4. Biodiversity Loss: Coal mining leads to deforestation, degradation of water bodies, and habitat destruction.

Health Impacts

The report highlights the serious health consequences of coal operations:

• Respiratory and Neurological Diseases: Exposure to silica in fly ash increases the risk of silicosis, cancer, and neurological disorders.
• Heavy Metal Contamination: Cadmium and lead exposure has resulted in high cancer risks in children and adults. Fish contaminated with heavy metals pose additional risks to consumers.
• Double Burden on Communities: Local populations face both health expenses and loss of income due to impacts on agriculture, fisheries, and animal husbandry.

Social and Livelihood Impacts

• Coal operations significantly affect traditional livelihoods. Agriculture, fisheries, and animal husbandry are the most affected sectors.
• The social disruption is compounded by inadequate compensation mechanisms and limited community participation in decision-making processes.

Regulatory Gaps and NGT Interventions

The report underscores regulatory failures:

• Thermal plants like Ennore have manipulated emissions data, consistently exceeding permissible pollution levels.
• Affected communities have minimal participation, reducing accountability of coal operators.
• Compensation imposed by the NGT often faces delays or legal challenges. For example, in the Mejia case, compensation calculations varied widely, with only partial amounts reaching farmers.

However, the NGT has also mandated environmental restoration in several cases:

• Sonbhadra and Mejia cases: Restoration committees were formed to plan and implement environmental repair.
• Ennore: A detailed plan for fly ash removal and mangrove restoration was directed by the tribunal.

Despite these interventions, implementation delays and weak monitoring remain a major challenge.

Recommendations from the Report

The report lays out several key recommendations for improving coal sector governance:

1. Monitoring and Assessment: Regular monitoring of air, water, soil, biodiversity, and community well-being in coal-bearing areas is essential to evaluate the effectiveness of NGT orders.
2. Community Involvement: Affected communities should participate in restoration committees to leverage traditional knowledge and ensure that livelihood impacts are addressed.
3. Capacity Building: Pollution control boards need enhanced capacities, with inputs from civil society and independent experts for long-term monitoring.
4. Health Impact Assessment: All large-scale coal operations should include mandatory health impact studies to inform policy and compensation measures.
5. Restoration and Cleanup: The Ministry of Environment, Forest, and Climate Change, along with regulatory agencies, should prioritize environmental restoration in areas affected by coal operations.
6. Just Transition Considerations: Coal transition plans must account for environmental, social, and health impacts on local communities. Long-term studies and robust data are crucial for evidence-based policymaking and compensation.
7. Tribunal Oversight: In certain cases, the NGT could keep matters pending to ensure regulatory follow-ups while avoiding overburdening the tribunal with enforcement duties.

Conclusion

• While coal remains central to India’s energy security, the environmental, health, and social costs of coal mining and power generation cannot be ignored.
• Evidence from NGT cases highlights significant gaps in enforcement, monitoring, and community participation.
• A comprehensive approach—combining stringent regulation, active restoration, health impact assessments, community participation, and robust monitoring—is essential to ensure a sustainable and just energy transition.
• Long-term studies and data-driven interventions will be key to protecting public health, preserving ecosystems, and ensuring fairness for affected communities.
• India’s energy future must balance development with sustainability, ensuring that coal operations do not compromise the health, environment, or livelihoods of vulnerable populations.

CARE MCQ

UPSC PYQ

Q3. Consider the following statements regarding coal-based power generation and its impacts in India: Coal and lignite-based power accounted for nearly three-fourths of India’s electricity generation in 2022–23. Fly ash disposal can cause water contamination, soil degradation, and increase risks of respiratory and neurological diseases. The National Green Tribunal (NGT) has consistently ensured that compensation from polluters reaches affected communities without delays. Community participation and traditional knowledge are recommended to be integrated into environmental restoration processes. Which of the statements given above is/are correct? A) 1 and 2 only B) 1, 2, and 4 only C) 2 and 3 only D) 1, 2, 3, and 4

Q. Consider the following statements: (2019) Coal sector was nationalized by the Government of India under Indira Gandhi. Now, coal blocks are allocated on lottery basis. Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-sufficient in coal production. Which of the statements given above is/are correct? (a) 1 only (b) 2 and 3 only (c) 3 only (d) 1, 2 and 3 Ans: (a)

Answer 3- B Explanation Statement 1 is correct: Coal and lignite-based power accounted for 73% of India’s electricity generation in 2022–23, highlighting the continued dominance of coal in India’s energy mix despite the push for renewables. Statement 2 is correct: Improper fly ash disposal and coal operations lead to water contamination, soil degradation, loss of biodiversity, and increased risks of respiratory, neurological, and cancer-related health issues among local communities. Statement 3 is incorrect: Although the National Green Tribunal (NGT) imposes compensation and restoration orders on polluters, delays, legal challenges, and partial implementation often prevent the affected communities from receiving full or timely compensation. Statement 4 is correct: The report recommends active involvement of affected communities and incorporation of traditional knowledge in environmental restoration committees to ensure livelihoods, social well-being, and sustainable remediation of coal-affected areas. Therefore, option B is the correct answer.

India’s Second Space Launch Complex at Kulasekarapattinam

Source: The Hindu

UPSC Syllabus Relevance: GS3 Science and Technology

Context: Space Launch Complex

Why in News?

ISRO is constructing its second launch complex at Kulasekarapattinam, Tamil Nadu, primarily for Small Satellite Launch Vehicle (SSLV) missions, expected to be operational by December 2026.

Introduction

• India is set to expand its space launch capabilities with the construction of a second launch complex at Kulasekarapattinam in the Tuticorin district of Tamil Nadu.
• This development reflects India’s growing ambitions in the space sector, particularly in small satellite launches and commercial space applications.

Project Overview

• Location: Kulasekarapattinam, a coastal village in Tuticorin district, Tamil Nadu.
• Area: Approximately 2,300 acres of land have been allocated for the project.
• Timeline: The Indian Space Research Organisation (ISRO) aims to complete construction by December 2026.
• Launch Capacity: The spaceport is expected to facilitate 20–25 satellite launches per year.
• Foundation Ceremony: The Bhumi Puja and foundation stone-laying ceremony were conducted with ISRO Chairman V. Narayanan, other senior ISRO officials, and scientists in attendance. The foundation stone was initially laid via video conferencing by Prime Minister Narendra Modi in February 2024.

(Image Source: The Economic Times)

Technical Specifications

• The Kulasekarapattinam complex will primarily host launches using the Small Satellite Launch Vehicle (SSLV).
• SSLV Capabilities:
  • Payload capacity: up to 500 kg
  • Orbit: up to 400 km altitude
• Purpose: The SSLV is designed for small satellite missions, commercial launches, and rapid deployment, contrasting with the heavier PSLV (Polar Satellite Launch Vehicle) and GSLV (Geosynchronous Satellite Launch Vehicle), which are used for larger payloads and deep space exploration.
• Unlike PSLVs and GSLVs, which are launched from Sriharikota (Andhra Pradesh), the Kulasekarapattinam complex will specifically focus on small satellite launches.

Small Satellite Launch Vehicle (SSLV) – Overview

The SSLV is India’s lightweight launch vehicle developed by ISRO to cater specifically to the small satellite market, both domestic and international. It is designed for rapid, flexible, and cost-effective satellite launches.

Key Features

1. Payload Capacity:
   • Can carry up to 500 kg to Low Earth Orbit (LEO) (~400 km altitude).
   • Smaller than PSLV and GSLV, which handle heavier payloads.
2. Design and Size:
   • Lightweight, modular, and simpler compared to PSLV/GSLV.
   • Can be assembled and launched quickly, reducing turnaround time.
3. Launch Flexibility:
   • Suitable for on-demand launches of small satellites.
   • Can support single or multiple small satellites in one mission.
4. Cost-Effectiveness:
   • Lower operational and launch costs compared to heavier rockets.
   • Attracts commercial clients globally, making India competitive in the small satellite market.

Significance

1. Augmenting Launch Capabilities:
   The new spaceport will increase India’s satellite launch capacity, enabling simultaneous handling of multiple launches annually and reducing dependency on Sriharikota.
2. Boost to Small Satellite Industry:
   The SSLV is tailored for small satellites, which are increasingly used in communication, remote sensing, scientific research, and commercial ventures.
3. Strategic and Commercial Edge:
   • Enhances India’s position in the global space market, particularly in affordable satellite launch services.
   • Supports national security, navigation, and earth observation capabilities.
4. National Aspirations:
   The project aligns with India’s vision of becoming a major space power and complements other initiatives such as the Gaganyaan human spaceflight programme, which demonstrates national technological and scientific capabilities.

Future Prospects

• ISRO aims for the first rocket launch from Kulasekarapattinam in the fourth quarter of 2026, with the Prime Minister announcing the exact date.
• With 20–25 launches planned annually, the new facility will significantly contribute to India’s growing space ambitions, both in scientific exploration and commercial satellite services.

Conclusion

• The Kulasekarapattinam space launch complex represents a major step forward in India’s space infrastructure, complementing the existing Sriharikota facility.
• By focusing on small satellite launches through the SSLV, India is positioning itself as a competitive and reliable player in the global space economy, while simultaneously advancing its technological self-reliance and strategic space capabilities.

CARE MCQ

UPSC PYQ

Q4. Consider the following statements regarding the Kulasekarapattinam space launch complex: It is being constructed on 2,300 acres of land in Tamil Nadu. The complex will primarily support Polar Satellite Launch Vehicle (PSLV) and Geosynchronous Satellite Launch Vehicle (GSLV) launches. It is expected to handle about 20–25 satellite launches per year. Which of the statements given above is/are correct? A. 1 and 2 only B. 1 and 3 only C. 2 and 3 only D. 1, 2 and 3

Q. With reference to India’s satellite launch vehicles, consider the following statements: (2018) PSLVs launch the satellites useful for Earth resources monitoring whereas GSLVs are designed mainly to launch communication satellites. Satellites launched by PSLV appear to remain permanently fixed in the same position in the sky, as viewed from a particular location on Earth. GSLV Mk III is a four-staged launch vehicle with the first and third stages using solid rocket motors; and the second and fourth stages using liquid rocket engines. Which of the statements given above is/are correct? (a) 1 only (b) 2 and 3 (c) 1 and 2 (d) 3 only Ans: (a)

Answer – 4 – B Explanation – Statement 1 is correct: The Kulasekarapattinam space launch complex is being constructed on 2,300 acres of land in Tamil Nadu. This forms India’s second spaceport, complementing the existing facility at Sriharikota. Statement 2 is incorrect: The complex will primarily support Small Satellite Launch Vehicle (SSLV) launches, not PSLV or GSLV, which continue to operate from Sriharikota. Statement 3 is correct: ISRO plans 20–25 satellite launches per year from the Kulasekarapattinam complex, enhancing India’s satellite launch capacity. Therefore, option B is the correct answer.

UN General Assembly Launches Two New Initiatives to Strengthen Global AI Governance

Source: Down To Earth

UPSC Syllabus Relevance: GS3 Science and Technology

Context: Global AI Governance

Why in News?

The UN General Assembly has launched the Independent International Scientific Panel on AI and the Global Dialogue on AI Governance to strengthen global cooperation on AI governance.

Introduction

• The United Nations General Assembly (UNGA) has announced two landmark initiatives aimed at fostering international cooperation in the governance of Artificial Intelligence (AI).
• The initiatives—the United Nations Independent International Scientific Panel on AI and the Global Dialogue on AI Governance—seek to address both the opportunities and challenges posed by rapidly advancing AI technologies.

Background: The Need for Global AI Governance

• Artificial Intelligence is increasingly shaping economic, social, and political landscapes worldwide.
• While AI offers significant benefits, including automation, innovation, and enhanced decision-making, it also poses risks such as job displacement, bias, privacy violations, and potential misuse in critical domains.
• These challenges have prompted calls for international collaboration and coherent governance frameworks to ensure that AI technologies are developed and deployed ethically and safely.
• The UN initiatives align with the Global Digital Compact, adopted in September 2024 under the Pact for the Future, which emphasizes multilateral cooperation in digital technology governance.

(Image Source: Down To Earth)

The United Nations Independent International Scientific Panel on AI

The Scientific Panel on AI is designed to serve as a bridge between cutting-edge AI research and policymaking. Its core objectives include:

• • Providing rigorous, independent scientific assessments of AI technologies.
  • Enabling governments and stakeholders to anticipate emerging AI challenges.
  • Informing evidence-based policy decisions on AI governance.
• The panel’s work will culminate in annual reports, which will be presented at the Global Dialogue on AI Governance sessions scheduled for July 2026 in Geneva and 2027 in New York.
• An open nomination process for panel members will be announced shortly, ensuring transparency and inclusivity in the selection of experts.

The Global Dialogue on AI Governance

The Global Dialogue on AI Governance is envisaged as an inclusive platform for States and other stakeholders to engage on critical issues related to AI. The dialogue aims to:

• Facilitate discussions on the societal, economic, ethical, and security implications of AI.
• Promote international collaboration on policies and frameworks for responsible AI development.
• Strengthen global consensus-building on principles and standards for AI governance.
• This platform will complement the work of the Scientific Panel, translating scientific assessments into actionable recommendations for policymakers.

Significance and International Response

• UN Secretary-General Antonio Guterres hailed the initiatives as a “pathbreaking milestone” demonstrating member states’ commitment to advancing global AI governance.
• He emphasized that these mechanisms represent a significant step forward in harnessing the benefits of AI while mitigating its risks.
• The Secretary-General also called on all stakeholders—including governments, private sector actors, civil society, and researchers—to support these initiatives and contribute to a future where AI serves the common good of humanity.

Conclusion

• The launch of these initiatives comes at a critical juncture, as AI technologies continue to advance at an unprecedented pace.
• By combining scientific assessment with inclusive dialogue, the UN aims to create a robust, multilateral framework for AI governance, ensuring that technological innovation benefits societies globally while minimizing potential harms.

CARE MCQ

UPSC PYQ

Q5. Consider the following statements regarding the recent UN initiatives on AI governance: The Independent International Scientific Panel on AI will provide independent scientific assessments to guide policymaking. The Global Dialogue on AI Governance aims to serve as a platform for inclusive discussions among States and stakeholders. Both initiatives are part of the Global Digital Compact under the Pact for the Future. Which of the statements given above is/are correct? A) 1 and 2 only B) 2 and 3 only C) 1 and 3 only D) 1, 2 and 3

Q.  With the present state of development, Artificial Intelligence can effectively do which of the following? (2020) Bring down electricity consumption in industrial units Create meaningful short stories and songs Disease diagnosis Text-to-Speech Conversion Wireless transmission of electrical energy Select the correct answer using the code given below: (a) 1, 2, 3 and 5 only (b) 1, 3 and 4 only (c) 2, 4 and 5 only (d) 1, 2, 3, 4 and 5 Ans: (b)

Answer – 5 – D Explanation – Statement 1 is correct: The Independent International Scientific Panel on AI will provide rigorous, independent scientific assessments to guide policymakers in anticipating emerging challenges and making informed decisions on AI governance. Statement 2 is correct: The Global Dialogue on AI Governance is designed as an inclusive platform within the UN for States and stakeholders to discuss critical issues related to AI, ensuring multilateral dialogue and consensus-building. Statement 3 is correct: Both initiatives are aligned with the Global Digital Compact, adopted under the Pact for the Future (2024), reflecting member nations’ commitment to responsible digital and AI governance at the international level. Therefore, option D is the correct answer.

Swadeshi in India: A Detailed Historical Overview

Source: Indian Express

UPSC Syllabus Relevance: GS1 Modern History

Context: Swadeshi in India

Why in News?

Swadeshi in India refers to the preference for locally produced goods and self-reliance, evolving from early 19th-century cultural and economic ideas to modern initiatives.

Introduction

• Swadeshi literally means “of one’s own country” and refers to the preference for indigenous goods and self-reliance.
• It has been a persistent theme in India’s social, cultural, and economic history, shaping ideas about local industry, self-sufficiency, and economic development.

Early Articulations (Early 19th Century)

• The earliest manifestations of swadeshi were cultural and religious. In 1822, the Bengali weekly Samachar Chandrika urged the use of Indian goods for religious and social reasons.
• Marathi social reformer Gopal Hari Deshmukh (1823–1892) and Bengali intellectual Rajnarayan Basu (1826–1899) emphasized the use of locally produced goods.
• The motive was twofold:
  1. Preserve indigenous industries and crafts.
  2. Protect artisans from cheap foreign imports, ensuring their economic survival.

(Image Source: Indian Express)

Mid-19th Century: Economic Awareness

• During and after the 1857 revolt, proclamations highlighted the impoverishment of weavers, carpenters, and other artisans, noting the need for reviving traditional crafts.
• Mahadev Govind Ranade (1842–1901) stressed preferring domestic products even if costlier or of lower quality.
• Swadeshi thus evolved from a cultural practice to an economic principle, emphasizing local production and self-sufficiency.

Late 19th – Early 20th Century: Economic Nationalism

• Economists like Dadabhai Naoroji and Romesh Chunder Dutt expanded swadeshi into a critique of colonial economic policies:
  • Naoroji’s Drain of Wealth Theory: Excessive outflow of wealth from India to Britain impoverished Indian society.
  • Dutt’s Economic History of India: Highlighted deindustrialization due to foreign imports and land tax policies, emphasizing the need to revive local industries.
• These ideas underscored the economic rationale for self-reliance and industrial development within India.

Swadeshi and Industrial Development

• Early 20th-century movements to promote swadeshi encouraged the establishment of domestic industries, including textiles, soap, tanneries, banks, and chemical factories.
• Leaders and reformers promoted local manufacturing to reduce dependence on imported goods, supporting economic growth and employment.

Mahatma Gandhi’s Conception of Swadeshi

• Gandhi expanded swadeshi beyond economics, giving it social, moral, and ethical dimensions:
  • Economic: Use locally produced goods, including hand-spun khadi, and support small-scale cottage industries.
  • Social and moral: Avoid goods produced by exploitative labor and embrace simple living.
  • Cultural: Preserve Indian crafts and traditional knowledge systems.
• The charkha (spinning wheel) symbolized self-reliance, promoting village-based cottage industries alongside agriculture.
• Gandhi’s swadeshi emphasized decentralized economic activity, with villages becoming largely self-sufficient units.

Modern Industrial Swadeshi

• While Gandhi prioritized village industries, other economic thinkers promoted modern industrialization with Indian ownership and management.
• Post-independence economic policy incorporated swadeshi principles:
  1. Mixed economy model combining public and private sectors.
  2. Import substitution to protect and nurture domestic industries.
  3. Support for small-scale and handicraft industries.
• Swadeshi became a guiding principle for national capital investment, ensuring Indian enterprises served local economic development.

Swadeshi in Contemporary India

• In recent decades, swadeshi has been emphasized as part of self-reliant economic initiatives:
  • Focus on promoting domestic manufacturing and reducing dependence on imports.
  • Support for small and medium enterprises, local industries, and supply chain resilience.
  • Emphasis on local production in response to global disruptions and economic sustainability concerns.

Significance of Swadeshi

• Swadeshi has consistently emphasized self-reliance, indigenous industry, and economic sustainability.
• Its evolution shows a balance between:
  • Cultural and moral aspects: promoting ethical consumption and local knowledge.
  • Economic aspects: fostering local industries, employment, and capital formation.
• Today, swadeshi remains relevant as a strategy for economic resilience and sustainable development.

Conclusion

• Swadeshi in India has evolved from a cultural and religious practice in the early 19th century to a comprehensive economic strategy encompassing cottage industries, modern manufacturing, and self-reliance.
• Its principles continue to inform economic policies, industrial development, and sustainable consumption patterns, demonstrating its enduring relevance in shaping India’s socio-economic landscape.

CARE MCQ

UPSC PYQ

Q6. Consider the following statements regarding Swadeshi in India: Swadeshi initially emerged as a cultural and religious practice in the early 19th century. Dadabhai Naoroji’s “Drain of Wealth” theory contributed to the economic rationale for Swadeshi. Mahatma Gandhi advocated Swadeshi purely as an economic strategy, without social or moral dimensions. Post-independence, Swadeshi influenced India’s mixed economy model and import substitution policies. Which of the statements given above is/are correct? Options: A. 1 and 2 only B. 1, 2, and 4 only C. 2 and 3 only D. All of the above

Q. Consider the following statements : (2023) Statement-I: 7th August is declared as the National Handloom Day. Statement-II: It was in 1905 that the Swadeshi Movement was launched on the same day. Which one of the following is correct in respect of the above statements?  (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I. (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I. (c) Statement-I is correct but Statement-II is incorrect. (d) Statement-I is incorrect but Statement-II is correct. Ans: (a)

Answer – 6 – B Explanation – Statement 1 is correct: Swadeshi first emerged in the early 19th century in Bengal and Maharashtra as a cultural and religious practice, encouraging the use of locally produced goods for social and moral reasons. Statement 2 is correct: Dadabhai Naoroji’s “Drain of Wealth” theory highlighted how colonial economic policies caused a massive outflow of wealth from India to Britain, providing a strong economic rationale for promoting Swadeshi and protecting indigenous industries. Statement 3 is incorrect: Mahatma Gandhi’s concept of Swadeshi was not purely economic. It included social, moral, and ethical dimensions, such as promoting hand-spinning, village industries, and ethical consumption. Statement 4 is correct: Post-independence, Swadeshi principles influenced India’s mixed economy model, import substitution policies, and protection of small-scale and handicraft industries, aiming at self-reliance and domestic industrial development. Therefore, option B is the correct answer.