UPSC Daily Current Affairs 6th March 2026
Relevance: GS Paper III – Economy, Industry, Manufacturing, Exports
For Prelims:
- Atmanirbhar Bharat, Import Substitution, Export Diversification, Production Linked Incentive (PLI), India Semiconductor Mission (ISM), Electronics Components Manufacturing Scheme (ECMS), Active Pharmaceutical Ingredients (APIs), PM E-DRIVE Scheme, Defence Industrial Corridors, Export Promotion Mission (EPM)
For Mains:
- Manufacturing-Led Growth, Export Competitiveness, Supply Chain Resilience, Strategic Industrial Policy, Global Value Chain Integration, Industrial Ecosystem Development, MSME Export Support, Trade Facilitation Reforms, Services-Led Growth Model, Viksit Bharat 2047 Economic Vision
Why in News?
India’s export sector has shown strong resilience amid global economic uncertainties. According to recent data, cumulative exports (merchandise and services) reached USD 720.76 billion during April–January 2025-26, reflecting steady growth driven by manufacturing expansion, policy reforms, and diversified global trade partnerships.
Key Highlights
- Total exports: USD 720.76 billion during Apr–Jan 2025-26 (+6.15% YoY)
- Services exports: USD 354.13 billion (+10.57% YoY)
- Rapid growth in electronics, automobiles, pharmaceuticals, and defence manufacturing
- Institutional reforms such as the Export Promotion Mission (EPM) strengthening the export ecosystem
India’s Manufacturing Push
India’s strategy of Atmanirbhar Bharat combines import substitution with export expansion. Major initiatives include:
- Make in India
- Production Linked Incentive (PLI) schemes
- Industrial infrastructure and logistics reforms
These initiatives aim to strengthen domestic production while integrating India into global value chains (GVCs).
Budget 2026-27: Key Manufacturing Measures
The Union Budget 2026-27 emphasises strategic manufacturing sectors through initiatives such as:
- Biopharma SHAKTI
- India Semiconductor Mission 2.0
- Electronics Components Manufacturing Scheme expansion
- Rare Earth Corridors
- Chemical Parks development
Duty reductions on aviation components, lithium-ion cells and defence parts are expected to lower production costs and enhance export competitiveness.
Electronics Manufacturing: A Major Success
India’s electronics sector has witnessed rapid growth:
- Production increased from ₹1.9 lakh crore (2014-15) to ₹11.3 lakh crore (2024-25)
- 25 lakh jobs created in the past decade
- 300+ mobile manufacturing units compared to just two in 2014
- India is now the world’s second-largest mobile phone manufacturer
To strengthen semiconductor capability, the government launched India Semiconductor Mission 2.0 and expanded incentives for electronics component manufacturing.
Growth in Key Industrial Sectors
Automobile Industry
- India is the largest market for two-wheelers and three-wheelers
- Third-largest globally for passenger and commercial vehicles
- Industry supports over 30 million jobs
Key initiatives include:
- PLI Scheme for Automobile and Auto Components
- PM E-DRIVE Scheme promoting electric mobility
- Advanced Chemistry Cell (ACC) Battery Storage scheme
Pharmaceutical Industry
India is widely known as the “Pharmacy of the World.”
- Third-largest pharmaceutical producer globally by volume
- Sector turnover reached ₹4.72 lakh crore in FY25
Government initiatives include:
- PLI for Bulk Drugs to boost domestic API production
- PLI for Medical Devices
- Establishment of Bulk Drug Parks and Medical Device Parks
- Global promotion of AYUSH systems, supported by the WHO Global Traditional Medicine Centre in Jamnagar
Defence Manufacturing
India’s defence sector is undergoing rapid transformation:
- Indigenous defence production rose from ₹46,429 crore (2014-15) to ₹1.54 lakh crore (2024-25)
- 65% of defence equipment is now manufactured domestically
- Defence exports reached ₹23,622 crore in FY25
Major initiatives include:
- Defence Acquisition Procedure (DAP) 2020
- Technology Development Fund (TDF)
- Uttar Pradesh and Tamil Nadu Defence Industrial Corridors
India aims to achieve ₹3 lakh crore defence manufacturing and ₹50,000 crore defence exports by 2029.
Export Diversification
India’s export resilience is also supported by diversification:
- India ranks among the top five Global South economies for export diversity
- Expansion of Free Trade Agreements (FTAs) covering 38 countries
- Agreements now provide access to around 70% of global GDP markets
Key export sectors include:
- Petroleum products
- Electronic goods
- Pharmaceuticals
- Textiles
- Automobiles
- Defence equipment
Export Promotion Mission (EPM)
To strengthen export competitiveness, the government launched the Export Promotion Mission with an outlay of ₹25,060 crore (2025-26 to 2030-31).
Two key components:
- Niryat Protsahan – financial and credit support
- Niryat Disha – market access and compliance support
Key interventions include:
- Export factoring support for MSMEs
- Credit facilities for e-commerce exporters
- Overseas warehousing assistance
- Freight cost reimbursements for exporters
- Trade intelligence and compliance support
Services Exports: India’s Strongest Sector
Services remain a major growth engine:
- Services exports reached USD 387.5 billion in FY25
- Trade surplus expanded to USD 188.8 billion
Drivers include:
- Growth of Global Capability Centres (GCCs)
- Strong demand for IT, BPM, consulting and fintech services
- Skilled workforce and digital infrastructure
India ranks second globally in AI skill penetration according to the Stanford AI Index Report 2025.
Conclusion
India’s economic strategy demonstrates that self-reliance and global integration can progress simultaneously. Through targeted manufacturing policies, diversified export markets and institutional reforms, India is strengthening both domestic capacity and global trade presence.
As the country moves toward the vision of Viksit Bharat 2047, expanding Made in India manufacturing for global markets will remain central to job creation, technological advancement, and export-led growth.
UPSC PYQ
Q. A “closed economy” is an economy in which:
A. the money supply is fully controlled
B.deficit financing takes place
C. only exports take place
D. neither exports nor imports take place
Answer: D
Explanation
- A closed economy is one that does not interact with other economies through trade.
- In such an economy, no international trade occurs, meaning there are no imports or exports.
- All goods and services are produced and consumed within the domestic economy.
CARE MCQ
Q.Consider the following statements:
- The PLI Scheme for Automobile and Auto Components promotes high-value Advanced Automotive Technology (AAT) vehicles and products.
- The PM E-DRIVE Scheme provides incentives only for electric two-wheelers and excludes other electric vehicle categories.
Which of the statements given above is/are correct?
A.1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer: A
Explanation
- Statement 1 is correct: The PLI-Auto Scheme supports Advanced Automotive Technology (AAT) vehicles and components to boost India’s automobile manufacturing sector.
- Statement 2 is incorrect: The PM E-DRIVE Scheme supports not only e-2W but also e-3W, e-trucks, e-ambulances, along with charging infrastructure and testing facilities.
Relevance: GS Paper III – Environment, Biodiversity Conservation, Sustainable Development; GS Paper II – Traditional Knowledge Systems
For Prelims:
- World Wildlife Day, Convention on International Trade in Endangered Species (CITES), Medicinal and Aromatic Plants (MAPs), Mega Biodiversity Countries, Botanical Survey of India (BSI), Medicinal Plants Conservation Areas (MPCAs), National Medicinal Plants Board (NMPB), Geographical Indication (GI) Tags
For Mains:
- Biodiversity Conservation, Traditional Knowledge Systems, In-Situ Conservation, Ex-Situ Conservation, Community-Based Conservation, Forest-Based Livelihoods, Sustainable Harvesting Practices, Biodiversity–Health Nexus
Why in News?
World Wildlife Day 2026 was observed on 3 March with the theme “Medicinal and Aromatic Plants: Conserving Health, Heritage and Livelihoods.” The theme highlights the importance of medicinal plants in healthcare systems, biodiversity conservation, and livelihood generation for local communities.
About World Wildlife Day
World Wildlife Day is celebrated annually on 3 March to commemorate the adoption of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) in 1973.
The day aims to:
- Raise awareness about the conservation of wildlife and plant species
- Promote sustainable use of biodiversity resources
- Highlight the role of wildlife in ecosystems, livelihoods, and sustainable development
Theme for 2026
The 2026 theme – “Medicinal and Aromatic Plants: Conserving Health, Heritage and Livelihoods” focuses on three important dimensions:
- Healthcare: Medicinal plants form the backbone of traditional medicine systems.
- Cultural Heritage: Many communities rely on traditional knowledge related to plant-based remedies.
- Livelihoods: Cultivation, collection, and trade of medicinal plants provide income to rural and forest-dependent communities.
Globally, 70–95% of people in developing countries rely on traditional medicine, much of which is derived from plant resources.
India’s Rich Biodiversity of Medicinal Plants
India is among the 17 mega biodiversity-rich countries in the world and possesses immense plant diversity.
Key facts include:
- India holds about 7% of global biodiversity.
- Around 45,000 plant species are found in the country.
- Nearly 15,000 species are medicinal plants.
- Approximately 8,000 species are used in traditional systems of medicine such as Ayurveda, Siddha and Unani.
Nearly 70% of medicinal and aromatic plants are found in biodiversity-rich regions such as:
- Western Ghats
- Eastern Ghats
- Himalayan region
- Aravalli range
The Botanical Survey of India has documented 5,250 plant species and over 9,500 traditional medicinal claims.
Demand and Trade of Medicinal Plants
According to the study “Medicinal Plants in India: An Assessment of their Demand and Supply” (Ved & Goraya, 2017):
- Domestic demand for medicinal plants: ~5,12,000 metric tonnes annually
- 1,178 medicinal plant species are involved in trade
- 242 species are traded in high volumes (above 100 tonnes annually)
This indicates the significant economic and commercial value of the medicinal plant sector.
Conservation Approaches in India
India follows a multi-layered conservation strategy for medicinal and aromatic plants.
In-Situ Conservation
In-situ conservation protects species within their natural ecosystems.
Key mechanisms include:
- National Parks
- Biosphere Reserves
- Gene Sanctuaries
- Medicinal Plants Conservation Areas (MPCAs)
Currently, 115 MPCAs across India protect medicinal plant species while preserving indigenous knowledge and biodiversity.
Ex-Situ Conservation
Ex-situ conservation involves preserving plant genetic resources outside their natural habitats.
Important measures include:
- 9,361 medicinal plant accessions conserved in the National Bureau of Plant Genetic Resources (NBPGR), New Delhi.
- Conservation through seed banks, botanical gardens, and controlled cultivation.
These methods are particularly useful for species with low seed viability or vegetative propagation challenges.
Key Government Schemes and Initiatives
National Medicinal Plants Board (NMPB)
The National Medicinal Plants Board under the Ministry of AYUSH implements several initiatives for medicinal plant conservation and cultivation.
National AYUSH Mission (NAM)
The National AYUSH Mission promoted cultivation of medicinal plants integrated with farming systems between 2015–16 and 2020–21, helping farmers diversify crops and increase income.
Mission for Integrated Development of Horticulture (MIDH)
Currently, medicinal plant cultivation is supported under the Mission for Integrated Development of Horticulture implemented by the Ministry of Agriculture and Farmers Welfare.
Central Sector Scheme for Medicinal Plants
The government has launched the Central Sector Scheme on Conservation, Development and Sustainable Management of Medicinal Plants with an outlay of ₹322.41 crore (2021–22 to 2025–26).
Key activities include:
- Establishment of Medicinal Plants Conservation and Development Areas (MPCDAs)
- Research and quality assurance
- Promotion of Good Agricultural and Collection Practices (GACPs)
- Raw drug repositories
Aushadhi Vanaspati Mitra Programme
This initiative recognises individuals and communities working for the conservation and cultivation of medicinal plants, encouraging greater public participation.
e-CHARAK Platform
The **e-CHARAK mobile app and web portal facilitate trade and market access for medicinal plants.
Features include:
- Market price updates from herbal markets
- Information exchange among farmers and stakeholders
- Availability in multiple regional languages
Livelihood Support to Local Communities
The medicinal plant sector provides significant livelihood opportunities.
Support is provided to:
- Joint Forest Management Committees (JFMCs)
- Self-Help Groups (SHGs)
- Van Panchayats
- Biodiversity Management Committees
Infrastructure support includes:
- Drying and processing units
- Storage and warehousing facilities
- Value addition and marketing support
Aushadhi Vanaspati Mitra Programme
This initiative recognises individuals and communities working for the conservation and cultivation of medicinal plants, encouraging greater public participation.
e-CHARAK Platform
The **e-CHARAK mobile app and web portal facilitate trade and market access for medicinal plants.
Features include:
- Market price updates from herbal markets
- Information exchange among farmers and stakeholders
- Availability in multiple regional languages
Livelihood Support to Local Communities
The medicinal plant sector provides significant livelihood opportunities.
Support is provided to:
- Joint Forest Management Committees (JFMCs)
- Self-Help Groups (SHGs)
- Van Panchayats
- Biodiversity Management Committees
Infrastructure support includes:
- Drying and processing units
- Storage and warehousing facilities
- Value addition and marketing support
GI-Tagged Medicinal Plant Products
Several medicinal plants and plant-based products have received Geographical Indication (GI) tags, highlighting their cultural and therapeutic significance.
Examples include:
- Navara Rice (Kerala) – used in Ayurvedic Panchakarma therapy
- Green Cardamom (Kerala and Karnataka) – used for respiratory and digestive ailments
- Ganjam Kewda Flower (Odisha) – used in traditional medicine and perfumery
- Kashmir Saffron – used in Ayurveda for multiple health benefits
- Nagauri Ashwagandha (Rajasthan) – GI registered in 2025
Conclusion
Medicinal and aromatic plants represent a vital link between biodiversity conservation, traditional knowledge, healthcare, and rural livelihoods. Through conservation initiatives, digital platforms, cultivation schemes, and community participation, India is strengthening its medicinal plant sector while preserving centuries-old herbal traditions.
As the world observes World Wildlife Day 2026, the focus on medicinal plants underscores the need to protect nature’s pharmacy while ensuring sustainable livelihoods and healthcare security for future generations.
UPSC PYQ
Q. Consider the following statements in respect of Trade Related Analysis of Fauna and Flora in Commerce (TRAFFIC):
- TRAFFIC is a bureau under the United Nations Environment Programme (UNEP).
- The mission of TRAFFIC is to ensure that trade in wild plants and animals is not a threat to the conservation of nature.
Which of the above statements is/are correct?
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer: B
CARE MCQ
Q. Consider the following statements regarding Seed Gene Banks:
- Seed banks conserve plant species by storing orthodox seeds under controlled conditions.
- Long-term storage of seeds in gene banks is generally maintained at temperatures around –10°C to –20°C.
Which of the statements given above is/are correct?
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer: C
Explanation:
Statement 1 is correct: Seed gene banks are an important method of ex-situ conservation where seeds of plant species (especially orthodox seeds) are stored under controlled temperature and humidity conditions to preserve genetic diversity.
Statement 2 is correct: For long-term conservation, seeds are usually stored at very low temperatures (–10°C to –20°C) to slow down metabolic activity and maintain seed viability for decades or even centuries.
Additional Information
- Medium-term storage of seeds is usually maintained at 0–5°C and about 35% relative humidity.
- Seed banks are widely used to conserve agricultural crop diversity and wild plant species.
- The Svalbard Global Seed Vault (Norway) is the world’s largest international seed storage facility designed to safeguard global crop diversi
