1) Budget 2025-26: Fuelling MSME Expansion

GS 3: Economy: Promoting MSMEs

Why is it in the news?

• The Union Budget 2025-26 introduces a series of reforms aimed at strengthening the Micro, Small, and Medium Enterprises (MSME) sector, recognizing its vital role in India’s economic growth. Alongside agriculture, investment, and exports, MSMEs serve as a key driver of development.
• To facilitate business expansion and improve efficiency, the investment and turnover limits for MSME classification have been raised. Additionally, access to credit is set to improve with an enhanced credit guarantee cover for micro and small enterprises, startups, and export-focused MSMEs.
• A new scheme will also provide financial support to first-time entrepreneurs from disadvantaged backgrounds, while sector-specific initiatives will enhance productivity in industries such as footwear, leather, and toy manufacturing.

MSME Contribution to the Economy

• MSMEs play a crucial role in India’s industrial landscape, contributing significantly to manufacturing, exports, and employment. With 5.93 crore registered MSMEs employing over 25 crore people, they generate a major share of the country’s economic output.
• In 2023-24, MSME-related products accounted for 45.73% of India’s total exports, reinforcing their importance in positioning the country as a global manufacturing hub.
• The new budgetary provisions aim to build on this strong foundation by fostering innovation, enhancing competitiveness, and ensuring better access to resources.

Key Measures for MSMEs in Union Budget 2025-26

Revised Classification Criteria

• To help MSMEs scale operations and access better resources, the investment and turnover limits for classification have been increased by 2.5 times and 2 times, respectively. This move is expected to boost efficiency, technological adoption, and employment generation in the sector.

Enhanced Credit Availability

• The credit guarantee cover for micro and small enterprises has been raised from ₹5 crore to ₹10 crore, allowing for an additional credit flow of ₹1.5 lakh crore over five years.
• For startups, the guarantee cover has doubled from ₹10 crore to ₹20 crore, with a reduced fee of 1% for loans in 27 priority sectors. Exporter MSMEs will also benefit from term loans up to ₹20 crore with enhanced guarantee coverage.

Credit Cards for Micro Enterprises

• A new Credit Card scheme will provide ₹5 lakh in credit to micro enterprises registered on the Udyam portal. In the first year, 10 lakh such cards will be issued, enhancing financial accessibility for small businesses.

Support for Startups and First-Time Entrepreneurs

• A new Fund of Funds worth ₹10,000 crore will be set up to expand financial support for startups. Additionally, a scheme targeting 5 lakh first-time entrepreneurs from women, Scheduled Caste, and Scheduled Tribe communities will provide term loans up to ₹2 crore over five years.
• This initiative incorporates lessons from the Stand-Up India scheme to promote inclusive entrepreneurship.

Focus on Labour-Intensive Sectors

Footwear and Leather Industry

• A Focus Product Scheme for the footwear and leather sector will support design, component manufacturing, and non-leather footwear production. This initiative is expected to create 22 lakh jobs and generate a turnover of ₹4 lakh crore.

Toy Manufacturing

• A new scheme for the toy sector aims to promote cluster development and skill-building, positioning India as a global toy manufacturing hub.

Food Processing Industry

• A National Institute of Food Technology, Entrepreneurship, and Management will be established in Bihar to boost food processing industries in the eastern region.

Manufacturing and Clean Tech Initiatives

• A National Manufacturing Mission will provide policy support and roadmaps for small, medium, and large industries under the Make in India initiative.
• Special emphasis will be placed on clean tech manufacturing, promoting domestic production of solar PV cells, EV batteries, wind turbines, and high-voltage transmission equipment.

Budgetary Allocation for MSME Ministry

• The budgetary outlay for the Ministry of MSME has increased over the years, reflecting the government’s commitment to the sector. The allocation for 2025-26 stands at ₹23,168.15 crore.

Current Landscape of MSMEs in India

• The MSME sector has demonstrated remarkable resilience, with its share in India’s Gross Value Added (GVA) rising from 27.3% in 2020-21 to 30.1% in 2022-23.
• Exports from MSMEs have grown significantly, from ₹3.95 lakh crore in 2020-21 to ₹12.39 lakh crore in 2024-25.
• The number of exporting MSMEs has also surged from 52,849 in 2020-21 to 1,73,350 in 2024-25, reinforcing their increasing integration into global trade.

Government Initiatives for MSMEs

PM Vishwakarma Scheme

• Launched in 2023, this scheme aims to enhance the quality and reach of artisans and craftspeople by integrating them into domestic and global value chains.
• With an initial outlay of ₹13,000 crore for 2023-24 to 2027-28, the scheme has facilitated 2.65 crore applications, with 27.13 lakh successfully registered.

Udyam Registration Portal

• Launched on July 1, 2020, this portal simplifies enterprise registration, making it paperless and self-declaration-based. As of February 4, 2025, the portal has 5.93 crore registered MSMEs, employing over 25.18 crore people.
• The Udyam Assist Platform, introduced in 2023, helps integrate informal micro-enterprises into the formal economy.

Prime Minister’s Employment Generation Programme (PMEGP)

• This credit-linked subsidy scheme promotes employment by supporting micro-enterprises. In 2023-24, PMEGP supported 89,118 enterprises, disbursing ₹3,093.87 crore in subsidies and generating 7,12,944 jobs.

Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

• Since its revamp in 2014-15, SFURTI has approved 513 clusters, with 376 becoming functional, supporting 2,20,800 artisans with ₹1,336 crore in grants.

Public Procurement Policy for MSMEs

• The 2012 policy mandates that 25% of government procurement must be from MSEs, including 4% from SC/ST-owned enterprises and 3% from women-owned enterprises.
• In 2023-24, ₹74,717 crore worth of goods and services were procured from MSEs, benefiting 2,58,413 enterprises.

Conclusion

• The Union Budget 2025-26 lays out a comprehensive strategy to boost the MSME sector by expanding credit access, supporting entrepreneurs, and focusing on key industries. Enhanced classification criteria, increased financial support, and targeted sectoral initiatives are set to drive innovation and competitiveness.
• The continued emphasis on programs like Udyam Registration, PM Vishwakarma, PMEGP, SFURTI, and the Public Procurement Policy underscores the government’s commitment to strengthening MSMEs.
• These measures will not only sustain but significantly enhance the sector’s role in economic growth, employment generation, and inclusive development across India.

2) Supreme Court’s Order on Ad-Hoc Judges in High Courts

GS 2: Polity and Governance: SC on ad-hoc judges

Why is it in the news?

• To address the increasing backlog of criminal cases, the Supreme Court on January 30 permitted High Courts to appoint retired judges on an ad-hoc basis. These judges, however, will only hear criminal appeals and must be part of a Bench led by a sitting judge.
• A Bench comprising Chief Justice of India (CJI), relaxed a restriction set in the Lok Prahari through its General Secretary S.N. Shukla IAS (Retd.) vs Union of India (2021) case, which had allowed such appointments only in High Courts where judicial vacancies exceeded 20% of the sanctioned strength.

Appointment Process for Ad-Hoc Judges

• Article 224-A of the Constitution, introduced by the Fifteenth Amendment Act, 1963, enables the appointment of retired judges to High Courts on an ad-hoc basis. Such appointments require the consent of both the retired judge and the President of India.
• Once appointed, these judges receive allowances as determined by the President’s order and exercise the same jurisdiction, powers, and privileges as a sitting High Court judge.
• The procedure for such appointments is detailed in the 1998 Memorandum of Procedure (MoP).

Circumstances for Ad-Hoc Appointments

• The Lok Prahari judgment identified specific conditions under which ad-hoc judges could be appointed. At that time, nearly 40% of judicial positions in High Courts were vacant.
• The judgment cited Law Commission reports from 1979, 1988, and 2003, which recommended the temporary appointment of retired judges as a solution to case backlogs. However, the Supreme Court cautioned that relying on Article 224-A could discourage regular judicial appointments.
• The Court laid out several “trigger points” for appointing ad-hoc judges, though the list is not exhaustive:

1. 1. If vacancies exceed 20% of a High Court’s sanctioned strength.
   2. If cases in a specific category have been pending for more than five years.
   3. If more than 10% of the total cases in a High Court are pending for over five years.
   4. If the case clearance rate is lower than the rate of new case filings.

• The Supreme Court also suggested that each Chief Justice maintain a panel of retired and soon-to-retire judges for potential ad-hoc appointments.

Key Directives in the Latest Order

• The CJI-led Bench noted that, as of January 25, 2025, High Courts had a pending caseload of 62 lakh cases, with over 18.2 lakh criminal cases and more than 44 lakh civil cases, according to the National Judicial Data Grid.
• To manage this backlog, the Supreme Court set aside the 20% vacancy rule established in Lok Prahari.
• However, the Court imposed new restrictions:

1. 1. Ad-hoc judges can only hear criminal appeals.
   2. The number of ad-hoc judges cannot exceed 10% of a High Court’s sanctioned strength.
   3. Each High Court can appoint only 2 to 5 ad-hoc judges.

Past Instances of Ad-Hoc Appointments

There have been only three documented cases of ad-hoc judicial appointments:

• Justice Suraj Bhan (1972) – Appointed to the Madhya Pradesh High Court after retirement to handle election petitions.
• Justice P. Venugopal (1982) – Appointed to the Madras High Court.
• Justice O.P. Srivastava (2007) – Appointed to the Allahabad High Court to preside over the Ayodhya title suits.
• These limited instances highlight the rarity of ad-hoc appointments in India’s judiciary.

3) Challenges in India’s Diagnostics Sector

GS 2: Polity and Governance: India’s diagnostic sector

Why is it in the news?

• India’s diagnostics sector is expanding rapidly, with an estimated 300,000 labs across the country. This sector contributes around 9% to the healthcare industry, valued at ₹860 billion in FY 2024, and is projected to grow to ₹1,275 billion by FY 2028.
• However, despite this growth, the sector remains highly fragmented, under-regulated, and concentrated in urban areas.

Regulatory Challenges

• The Clinical Establishments (Registration and Regulation) Act 2010 was introduced to regulate diagnostic centres by ensuring their registration with State councils and setting minimum quality standards.
• However, only 12 States and all Union Territories (except Delhi) have adopted it. States like Kerala and Karnataka have their own laws, but implementation remains weak or inconsistent.

Lack of Standardization

• With low entry barriers and weak regulation, the sector has many small, standalone labs operating without accreditation. Accreditation by the National Accreditation Board for Testing and Calibration Laboratories (NABL) is voluntary, leading to inconsistent quality standards.
• Many labs lack skilled personnel and struggle with pricing disparities, resource constraints, and biomedical waste management issues.

Shortage of Skilled Personnel

• The shortage of trained professionals is a major issue. Many diagnostic centres operate without full-time pathologists, relying instead on technicians.
• In some cases, lab reports are signed off using ‘bought-out’ signatures of pathologists who are not actually supervising the lab. The Health Ministry has highlighted the lack of microbiologists and trained technicians, further exacerbating the problem.

The Issue of Ghost Pathologists

• A major malpractice in the sector is the presence of ‘ghost pathologists,’ where pathologists lend their signatures for reports without actual involvement. Some labs operate solely with technicians, violating regulations that mandate pathologist supervision.
• In Maharashtra, for instance, fraudulent use of doctors’ credentials has been reported, with complaints of identity theft and false reports issued without professional oversight.

Urban-Rural Divide

• A significant challenge is the urban-rural disparity in diagnostic facilities. Only 24% of diagnostics revenue comes from rural areas, despite nearly 70% of India’s population residing there.
• Government labs, though present, suffer from outdated infrastructure, limited operational hours, and inadequate staffing, forcing patients to rely on private centres.

Heavy Workload in Government Labs

• Government labs, particularly in major hospitals, face immense workload pressure due to staff shortages. In Kolkata’s Medical College, for instance, three MD pathology students handle over 800 tests daily.
• District hospitals often lack adequate testing facilities, pushing patients to urban centres and overburdening city hospitals.

Cost and Accessibility Issues

• High pricing in private labs further exacerbates the problem. Some States have attempted to address this issue through government initiatives. Telangana’s ‘T-Diagnostics’ programme, launched in 2018, has conducted over 18.10 crore tests, saving ₹1,100 crore in out-of-pocket expenses.
• Kerala’s ‘Aardram Mission’ has upgraded primary health centres to offer basic laboratory tests at nominal rates. However, supply chain issues, such as shortages of testing reagents, continue to hinder these efforts.

Space and Infrastructure Constraints

• Stringent space requirements under regulatory frameworks are another concern. Kerala’s Clinical Establishments Act mandates minimum space standards that many small labs struggle to meet.
• Tamil Nadu’s 2024 amendments require 300 sq. ft. for rural labs and 500-700 sq. ft. for urban labs, a burden for smaller facilities catering to limited patients. Industry representatives argue that focus should be on quality assurance rather than space constraints.

The Need for Stronger Regulations

• The diagnostics industry recognizes the need for regulation but seeks balanced policies.
• In Karnataka, the Indian Association of Pathologists and Microbiologists (KCIAPM) advocates for strengthening the Karnataka Private Medical Establishments (KPME) Act to include licensing norms, accreditation requirements, and penalties for non-compliance.
• Experts emphasize that every lab should have a qualified pathologist and trained technicians to ensure reliable and standardized services.

Conclusion

• India’s diagnostics sector, while growing rapidly, faces significant regulatory, manpower, and quality-related challenges. Addressing these issues requires strict implementation of existing laws, better accreditation standards, and improved access in rural areas.
• Without systemic reforms, the sector will continue to struggle with inconsistencies, affecting both healthcare quality and patient outcomes.

4) India’s Changing Stance on the Climate Crisis

GS 3: Environment and Biodiversity: India’s approach to climate change

Why is it in the news?

• In the past year, India has signalled a crucial shift in its approach to climate change, questioning the global focus on achieving a specific temperature target. Instead, it argues that for developing nations like itself, adaptation should take precedence over emission reductions.
• India has also emphasized that rapid economic growth is the best defense against climate change and has opposed restrictions like curbs on coal usage that could hamper development.
• While these arguments are not entirely new, they are now being made with greater clarity, indicating India’s intent to maintain flexibility in its climate policies.

An Analysis

Slow Progress on Emission Reductions

• India’s reassessment of its climate strategy is driven by the slow global progress on emission reduction targets. Developed nations, which bear the primary responsibility, have failed to take adequate action, and global emissions continue to rise.
• Given this reality, India sees little incentive to allocate resources for mitigation, as its benefits depend on collective global action and take time to materialize. In contrast, adaptation measures offer immediate and localized benefits.
• India argues that economic development is the best way to build resilience against climate change, as prosperity enhances a country’s ability to cope with climate risks.

Economic Growth as a Priority

• The Economic Survey for 2024-25 reinforced India’s stance, emphasizing that the country must first achieve developed nation status by 2047 before prioritizing its net-zero goal for 2070. This approach liberates India from the dilemma of balancing aggressive decarbonization with rapid economic growth.
• A similar strategy has been followed by China, which prioritized industrialization over emission reductions, leading to substantial economic growth. Today, China is the global leader in renewable energy deployment and clean energy manufacturing, positioning itself for a faster transition to low-carbon energy.
• India appears to be adopting a similar path, ensuring its growth is not compromised by stringent climate policies.

Declining Global Attention on Climate Action

• India’s recalibration comes at a time when international focus on climate change has waned, despite consecutive years of record-breaking global temperatures. Geopolitical conflicts and economic tensions have diverted attention from the climate crisis.
• Additionally, developing nations have grown frustrated with the international climate process, as developed countries have failed to meet their commitments on emission cuts and financial aid. The weak financial package agreed upon at COP29 further eroded trust in the global climate regime.
• The United States’ potential withdrawal from the Paris Agreement under a new Trump administration in 2025 could further weaken global climate efforts. With major powers prioritizing their energy security over climate concerns, India faces reduced pressure to phase out coal and can justify its energy choices in the national interest.

Balancing Economic Growth with Clean Energy Transition

• Despite its stance on prioritizing development, India is not abandoning decarbonization. It acknowledges that long-term economic growth must align with clean energy adoption to remain competitive.
• The transition to a low-carbon economy cannot be delayed indefinitely, as it risks leaving India behind in the global shift towards renewable energy and green technologies. While India asserts its right to decide its own pace of energy transition, it must also build domestic manufacturing and technological capacities in clean energy sectors.

The Role of Nuclear and Renewable Energy

• A critical part of India’s clean energy transition is the push to develop Small Modular Nuclear Reactors (SMRs). While the India-US Civil Nuclear Deal and a special waiver from the Nuclear Suppliers Group should have accelerated nuclear energy expansion, progress has been slow.
• The renewed focus on SMRs presents an opportunity to enhance India’s nuclear power capacity. However, even if the ambitious target of 100 GW of nuclear energy by 2047 is achieved, it will contribute less than 10% of the total installed electricity capacity.
• To succeed in its climate goals, India must aggressively scale up solar, wind, and hydrogen energy. The next two decades will be crucial in ensuring that India’s economic growth is accompanied by a steady transition to clean energy.
• While India insists on autonomy in determining its climate policies, it must also take proactive steps to strengthen its clean energy infrastructure and reduce dependence on foreign supply chains.

Conclusion

• India’s evolving climate policy reflects a pragmatic approach that balances economic growth with environmental responsibility. By prioritizing adaptation, pushing for energy security, and gradually integrating clean energy, India aims to develop on its own terms while preparing for a sustainable future.
• However, the success of this strategy will depend on its ability to build domestic capabilities in renewable and nuclear energy, ensuring long-term energy security and climate resilience.

5) Intensifying Marine Heatwaves and Climate Change

GS 3: Environment and Biodiversity: Marine Heatwaves (MHWs)

Why is it in the news?

• The marine heatwaves (MHWs) off Western Australia, which led to the death of over 30,000 fish in January 2025, were made up to 100 times more likely due to climate change, according to Climate Central.
• These MHWs, which began in September 2024, are still ongoing, with sea surface temperatures (SSTs) in some areas rising over 2°C above average. This event is the second-worst MHW in the region’s recorded history, following the extreme 2010-11 summer, when temperatures soared 5°C above average.

What are Marine Heatwaves?

• MHWs are extreme weather events that occur when the surface temperature of a sea region rises 3–4°C above the average for at least five days. They can persist for weeks, months, or even years.
• According to US government’s agency National Oceanic and Atmospheric Administration (NOAA), MHWs have become more frequent and intense over the past few decades. A 2018 study in Nature reported a doubling of MHW days between 1982 and 2016.
• Similarly, a 2021 International Union for Conservation of Nature (IUCN) report found a 50% increase in MHWs over the past decade, with these heat events becoming longer and more severe, affecting marine ecosystems worldwide.

Causes of Intensified Marine Heatwaves

• The primary driver of MHW intensification is the climate crisis. Global temperatures have risen 1.3°C above pre-industrial levels, with oceans absorbing 90% of the excess heat. Since 1850, global mean SST has increased by 0.9°C, with 0.6°C of this rise occurring in the last four decades.
• The Climate Central report highlights that since September 2024, temperature anomalies in Western Australia have steadily increased, reaching over 2°C on multiple occasions by January 2025.
• Global projections indicate that if warming reaches 1.5°C, MHW frequency could increase 16 times, and at 2°C warming, they could rise 23 times.

Impacts of Marine Heatwaves

• MHWs have devastating effects on marine ecosystems. The 2010-11 MHWs in Western Australia led to large-scale fish kills and the destruction of kelp forests, which provide essential habitats and food for marine life.
• These heatwaves also cause coral bleaching, weakening coral reproduction and making them vulnerable to diseases.
• Australia’s Great Barrier Reef experienced its seventh mass bleaching event in 2024 due to intense MHWs, reaching “catastrophic” levels. Such damage threatens thousands of marine species that depend on corals for survival.

Conclusion

• The intensification of marine heatwaves due to climate change is a growing global threat. With rising ocean temperatures, these extreme events will become more frequent and severe, leading to widespread marine ecosystem disruptions.
• Urgent global action to mitigate climate change is essential to prevent further damage to marine biodiversity and coastal economies.

6) Land Acquisition Laws: Comparing India, US, and South Africa Amid Global Debate

GS 2: Polity and Governance: Comparing Land acquisition laws

Why is it in the news?

• On February 6, US Secretary of State announced he would not attend the G20 summit in Johannesburg, citing concerns over South Africa’s land policies.
• He criticized the country for “expropriating private property,” referring to the Expropriation Act, 2024, which allows the government to acquire private land without consent for public use or interest. US President Donald Trump also threatened to cut aid, accusing South Africa of “confiscating land” and mistreating certain groups.
• In response, South African President defended the law, stating it was a constitutionally mandated process ensuring equitable land access.

Origins of Compulsory Land Acquisition

• Despite different historical trajectories, South Africa, the US, and India share a colonial legacy that shaped their land laws. The concept of eminent domain, or compulsory land acquisition, dates back to Dutch scholar Hugo Grotius in 1625.
• He argued that the state holds supreme ownership over all property and can take private land for public utility. This principle was later codified in colonial-era laws like India’s Land Acquisition Act, 1894, and South Africa’s Expropriation Act, 1975.

The Evolution of Private Property Rights

• The Magna Carta of 1215 laid the foundation for property rights by stating that land could only be taken through lawful judgment or due process. This influenced legal frameworks worldwide.
• The US Constitution’s Fifth Amendment (1791) includes a “Takings Clause,” ensuring private property is not taken without just compensation.
• Similarly, South Africa’s Constitution (Section 25) prohibits arbitrary deprivation of property and mandates compensation for public interest expropriations.
• India’s Constitution originally recognized property as a fundamental right under Articles 19 and 31, but in 1978, these were replaced by Article 300A, which allows land deprivation only under the authority of law.

Land Acquisition Laws in India, the US, and South Africa

       India: From Colonial Law to Inclusive Land Reforms

• • For over a century, land acquisition in India was governed by the Land Acquisition Act, 1894, which allowed the government to acquire land for public purposes with compensation to landowners but ignored the concerns of displaced communities.
  • In 2013, Parliament replaced this with the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act. This law mandates a participatory, transparent process, requiring a Social Impact Assessment and provisions for rehabilitation and fair compensation.

      USA: Encouraging Private Investment in Land Acquisition

• • In the US, land acquisition has increasingly supported private investment. The landmark 2005 case Kelo v. City of New London ruled that property could be acquired for private economic development if it served a broader public use.
  • The ruling sparked controversy, leading several states, including Texas, Alabama, and Delaware, to pass laws restricting eminent domain for private projects.

      South Africa: Addressing Historical Land Inequality

• • After apartheid, South Africa adopted a “Willing Seller, Willing Buyer” policy to redistribute land from white owners to the native majority. However, progress was slow—by 2017, white ownership had only decreased from 86% to 72%.
  • The 2024 Expropriation Act aims to accelerate redistribution by allowing the state to expropriate land with “just and equitable” compensation. In some cases, land may be acquired with nil compensation if deemed necessary in the public interest.
• The law also permits “urgent expropriation” for up to 12 months for temporary public use.

Conclusion

• While all three countries recognize land acquisition for public purposes, their legal approaches differ. India has shifted towards more inclusive policies, the US has moved toward private investment-driven development, and South Africa’s new law seeks to correct historical inequalities.
• The ongoing global debate highlights the complex balance between economic growth, public welfare, and private property rights.

7) Chaman Arora Awarded Sahitya Akademi Award 2024 for Dogri Literature

GS 1: Culture: Arts

About the news

• Late Chaman Arora has been honoured with the Sahitya Akademi Award 2024 in Dogri for his short story collection Ik Hor Ashwthama.
• The award includes a casket with an engraved copper plaque and a cash prize of ₹1,00,000.