Prelims
The Santhali Language
Context
- The President of India highlighted language and literature’s unifying role.
- Observed during centenary celebrations of the Ol Chiki script and Santhali Language Day.
What it is
- Santhali is one of India’s oldest living tribal languages.
- Primarily spoken by the Santhal community across eastern and central India.
- Recognised in the Eighth Schedule of the Indian Constitution.
Linguistic Origin
- Belongs to the Munda branch of the Austroasiatic language family.
- Linguistically distinct from Indo-European and Dravidian languages.
- Traditionally preserved through oral transmission, not early written forms.
Evolution of Script
- Acquired a distinct script, Ol Chiki, in 1925.
- Script developed by Pandit Raghunath Murmu, a Santhal reformer.
- Provided Santhali with a standardised written identity.
Constitutional and Legal Status
- Included in the Eighth Schedule by the 92nd Constitutional Amendment Act, 2003.
- Enables official recognition, promotion, and inclusion in education and administration.
Geographical Spread
- Spoken by nearly 7 million people in India.
- Major regions include Jharkhand, Odisha, West Bengal, and Bihar.
- Also spoken by Santhal communities in Nepal and Bangladesh.
Key Linguistic Features
- Ol Chiki script: Phonetic, scientific, and designed for Santhali sound patterns.
- Agglutinative structure: Words formed by adding meaningful suffixes.
- Tonal and phonological elements common with Ho and Mundari languages.
- Avoids distortions caused by earlier use of borrowed scripts.
Cultural and Social Significance
- Strong oral tradition of songs, myths, folktales, and rituals.
- Preserves Santhal history, ecology, worldview, and social norms.
- Acts as a marker of tribal identity, dignity, and cohesion.
- Language and script symbolise cultural continuity and self-respect.
Conclusion
- Santhali language and Ol Chiki script represent linguistic resilience and cultural assertion.
- Their recognition strengthens tribal heritage within India’s plural constitutional framework.
Narsapuram Lace Craft
Context
- The Prime Minister highlighted Narsapuram Lace Craft in Man Ki Baat.
- Recognised as a women-led livelihood model ensuring cultural continuity.
- Its Geographical Indication (GI) tag has revived national attention.
What it is
- Narsapuram Lace Craft is a handmade crochet lace tradition.
- Fine threads are converted into intricate lace using a single crochet hook.
- Reflects high skill, patience, and manual precision.
Region and Centres
- Practised in West Godavari and Dr. B.R. Ambedkar Konaseema districts.
- Major centres include Narsapur, Palacole, Razole, and Amalapuram.
Historical Background
- Introduced in 1844 through European missionaries teaching lace-making techniques.
- The craft endured famines and economic depressions, sustaining women’s livelihoods.
- Gradually evolved into a globally recognised handcrafted textile tradition.
Key Characteristics
- Raw materials: Fine cotton threads; silk, rayon, and synthetic yarns for export-grade lace.
- Tools: Crochet hooks of varying sizes create different lace textures and densities.
- Technique: Manual looping and interlocking of stitches without mechanical assistance.
- Design motifs: Floral, paisley, and geometric patterns inspired by nature and tradition.
- Product range: Garments, doilies, bedspreads, table linen, cushion covers, stoles, wall hangings.
Economic and Cultural Significance
- Provides regular income to thousands of women artisans.
- Women often act as primary contributors to household economies.
- Supports women-led economic empowerment in rural Andhra Pradesh.
- Preserves an indigenous textile heritage transmitted across generations.
- GI recognition strengthens market visibility and cultural identity.
Conclusion
- Narsapuram Lace Craft exemplifies the linkage between heritage preservation and livelihood security.
- It highlights how traditional crafts can sustain inclusive and women-centric rural economies.
India Becomes World’s Fourth Largest Economy
Context: India has surpassed Japan to become the world’s fourth largest economy with GDP valued at $4.18 trillion, the government announced on Tuesday. India is poised to overtake Germany to become third largest by 2030 with projected GDP of $7.3 trillion.
More in News
- India’s real GDP grew 8.2% in Q2 2025-26, up from 7.8% in Q1 and 7.4% in Q4 last fiscal.
- GDP expansion reached six-quarter high in Q2 2025-26, driven by robust private consumption amid global trade uncertainties.
- World Bank projected 6.5% growth in 2026; IMF raised projections to 6.6% for 2025 and 6.2% for 2026.
- ADB lifted 2025 forecast to 7.2%; Fitch raised FY26 projection to 7.4% on stronger consumer demand.
- Inflation remains below lower tolerance threshold; unemployment declining; export performance improving with strong credit flows to commercial sector.
Key Determinants of India’s Economic Ascent
- Expanding Domestic Consumption
-
- Private consumption contributes nearly 60% of GDP, anchored largely in rural demand growth.
- Rapid urbanisation, projected to reach 600 million people by 2030, is boosting aggregate demand.
- Rising middle class, youthful population, and lifestyle shifts are driving consumption-led expansion.
- Demographic Dividend
-
- India’s median age of 29 years ensures sustained labour availability and productivity.
- Young workforce supports long-term growth in manufacturing, services, and innovation sectors.
- Infrastructure Development and Digital Transformation
-
- Massive investments in roads, railways, logistics, ports, and energy enhance economic efficiency.
- Digital Public Infrastructure (DPI) like Aadhaar, UPI, and CoWIN improves service delivery.
- India Stack and JAM trinity promote financial inclusion and digital integration at scale.
- External Realignment and Global Integration
-
- China Plus One strategy is redirecting global manufacturing and FDI towards India.
- Multinationals like Apple and Samsung are expanding production bases in India.
- Strategic partnerships with Japan and QUAD nations enhance supply chain resilience.
- Reform-Driven Growth
-
- GST created a unified national market and improved tax compliance.
- IBC strengthened credit discipline and resolution of stressed assets.
- Corporate tax rationalisation improved business sentiment and investment attractiveness.
Challenges to Sustained Growth
- Global Geopolitical and Trade Uncertainty
-
- Conflicts like Russia–Ukraine war and Red Sea crisis raised shipping costs sharply.
- US–China rivalry disrupts technology and semiconductor supply chains.
- Export-oriented sectors face global demand shocks and trade barriers.
- Inflation and Price Pressures
-
- CPI inflation moderated, but services inflation remains elevated around 6%.
- Food and fuel volatility, driven by climate events and crude prices, strains households.
- Rising urban housing and transport costs limit discretionary spending.
- Employment and Workforce Disruption
-
- Automation and AI threaten routine jobs in manufacturing and IT-BPO sectors.
- India must upskill 400 million workers by 2030 to remain competitive.
- Over 80% workforce remains informal, lacking job and social security.
- Trade and Investment Gaps
-
- Merchandise exports declined, despite services exports and remittances supporting CAD.
- Sustained infrastructure and green investment is required to meet Net Zero targets.
Way Forward
- Diversify trade partnerships beyond traditional markets through new FTAs.
- Strengthen manufacturing in semiconductors, EVs, drones, and green hydrogen.
- Deepen digital inclusion, cybersecurity, and 5G expansion beyond metros.
- Ensure inclusive, sustainable growth via education reforms, R&D, and climate-smart policies.
Digital Payment Systems
Context: Small value retail digital payments are growing faster, with digital payments increasing 35% in volume during 2024-25, the Reserve Bank of India said in its report. The average value of retail digital payments decreased to ₹3,830 during 2024-25 from ₹4,382 in 2023-24.
More in News
- Digital payments grew 17.9% in value terms during 2024-25, accounting for 97.6% of India’s total payments nationwide.
- Paper-based instruments (cheques) declined during the year, representing the remaining 2.4% of total payments in India.
- Volume growth in digital payments was much higher at 35% amid increasing usage of digital methods for small-value payments.
- Unified Payments Interface (UPI) accounted for majority share in transaction volume; RTGS had largest share in value terms.
Digital Payment Systems in India
- Concept and Framework
-
- Digital payments involve electronic transfer of money using devices or channels like apps, cards, QR codes.
- Payments occur between accounts through bank transfers, mobile money, and digital interfaces.
- National Payments Corporation of India (NPCI) acts as umbrella organisation for retail payment systems.
- NPCI functions under the Payment and Settlement Systems Act, 2007.
- Payment Systems by NPCI
- Immediate Payment Service (IMPS)
-
-
-
- Designed primarily for retail customers requiring instant fund transfers.
- Transaction limit ranges between ₹1–5 lakh, including applicable fees and GST.
- Operates 24×7 with real-time settlement.
- Services provided through banks, PPIs, and mobile wallet companies.
-
-
- Unified Payments Interface (UPI)
-
-
-
- Digital payment technology built on the IMPS infrastructure.
- Supports both push and pull transactions between users.
- Widely adopted internationally, including France, UAE, and Singapore.
- UPI Lite + NFC enables small-value offline payments.
- BHIM-UPI functions as a dedicated money transfer application.
-
-
- RuPay Card Payment Gateway
-
-
-
- Operates across ATM, PoS devices, and online portals.
- Free card issuance under Pradhan Mantri Jan Dhan Yojana.
- Accepted in foreign countries, including Mauritius.
-
-
- RBI’s Centralised Payment Systems (CPS)
- Real Time Gross Settlement (RTGS)
-
-
-
- Used for high-value transactions.
- Lower threshold fixed at ₹2 lakh, with no upper ceiling.
- Functions 24×7 with instant settlement and no fees.
-
-
- National Electronic Fund Transfer (NEFT)
-
-
-
- Suitable for mid-range transactions.
- No transaction limit imposed by RBI and no fees charged.
- Operates 24×7, settling transactions at 30-minute intervals.
-
-
- Lightweight Payment and Settlement System (LPSS)
-
-
- RBI’s emergency alternative to NEFT and RTGS.
- Designed as a temporary and portable solution.
-
- Miscellaneous Digital Payment Initiatives
- BBPS and UPMS streamline bill payments and presentment.
- NETC enables electronic toll collection.
- PAI Chatbot, Bharat QR, e-RUPI support digital inclusion.
- Aadhaar Payment Bridge (APB) and AePS facilitate Aadhaar-based transactions.
- Regulatory Bodies
- Digital Transactions Ombudsman addresses customer grievances.
- BPSS regulates and supervises payment and settlement systems.
Trend and Progress of Banking in India 2024–25 Report
Overview
- RBI’s flagship annual assessment evaluating banks and NBFCs’ performance, risks, regulation, inclusion, and payments.
- Provides a consolidated view of systemic soundness, policy priorities, and financial sector resilience.
Key Systemic Trends
- Balance sheet expansion continued, with SCBs recording double-digit growth in deposits and credit.
- Asset quality strengthened, as GNPA ratios declined to multi-decadal lows.
- Capital and liquidity buffers remained comfortable, exceeding prescribed regulatory thresholds.
- Digital inclusion scaled up, with 514 districts achieving universal digital payment enablement.
- Financial Inclusion Index improved to 67.0, reflecting deeper access and usage.
- Unified Lending Interface (ULI) expanded, onboarding 64 lenders using 136+ data services.
- Deposit insurance reform approved, shifting towards a risk-based premium structure.
Performance of the Banking Sector
- GNPA ratio declined to nearly 2.1%, marking the strongest asset quality in decades.
- Credit growth sustained at 14–16%, driven by industry, MSMEs, housing and services.
- Capital adequacy stayed robust, with CRAR above 16%, exceeding Basel III norms.
- Deposit mobilisation grew around 12–13%, signalling rising public confidence.
- Financial inclusion depth improved significantly, supported by digital payments expansion.
Major Policy and Institutional Initiatives
- PRAVAAH portal launched for centralised regulatory submissions and faster approvals.
- Digital payments push focused on district-level inclusion and accessibility for persons with disabilities.
- ULI framework enabled faster, safer credit decisions through plug-and-play data architecture.
- FREE-AI framework introduced governance principles for responsible AI adoption.
- Risk-based deposit insurance aligned premiums with institutional risk profiles.
Emerging Challenges
- Customer grievances increased, particularly in loans, cards and digital channels.
- Cybersecurity and digital fraud risks intensified with rapid UPI and online banking growth.
- AI and model-risk concerns arose due to opacity, bias and privacy vulnerabilities.
- Retail credit stress pockets observed in certain unsecured and small-ticket segments.
- Inclusion-quality gap persisted due to low literacy and digital discomfort.
Way Forward
- Prioritise quality-first credit expansion with stronger underwriting and affordability checks.
- Strengthen consumer protection mechanisms through faster grievance redressal.
- Enhance technology governance, including AI explainability and periodic audits.
- Adopt cybersecurity-by-design with continuous monitoring and staff training.
- Deepen financial literacy among rural users, seniors and first-time digital customers.
Conclusion
- The report highlights a resilient banking system with low NPAs and strong buffers.
- Sustained gains depend on responsible technology adoption and fair consumer protection.
Pinaka Long Range Guided Rocket (LRGR-120)
Context
- DRDO successfully conducted the maiden flight test of Pinaka LRGR-120 at ITR Chandipur.
What it is
- Pinaka LRGR-120 is an indigenously developed precision-guided rocket of the Pinaka system.
- It is a guided variant of the Pinaka multi-barrel rocket launcher (MBRL).
- Designed for long-range, high-accuracy battlefield strikes.
Developing Agencies
- Developed by ARDE, DRDO, in collaboration with HEMRL.
- Entire system reflects domestic research, design, and development capability.
Objectives
- Extend strike range of the Pinaka rocket artillery system.
- Provide precision-guided firepower with improved accuracy.
- Minimise collateral damage during long-range engagements.
- Enhance operational flexibility using existing Pinaka launchers.
Key Features
- Extended range: Capable of striking targets up to 120 km, expanding battlefield reach.
- Precision guidance: Advanced navigation and control systems ensure high accuracy.
- In-flight manoeuvrability: Rocket successfully demonstrated planned trajectory manoeuvres.
- Launcher compatibility: Fully compatible with in-service Pinaka launchers.
- Platform commonality: Enables firing of multiple Pinaka variants from the same launcher.
- Indigenous design: Developed entirely using Indian technologies and materials.
Operational Significance
- Acts as a major force multiplier for the Indian Army’s artillery capabilities.
- Strengthens long-range precision strike potential without new launcher infrastructure.
- Improves target discrimination, reducing unintended damage.
- Enhances rapid deployment and flexibility in varied operational scenarios.
- Reinforces India’s push towards self-reliance in defence technology.
Conclusion
- Pinaka LRGR-120 marks a significant leap in indigenous rocket artillery precision and range.
- It strengthens India’s modern artillery deterrence and operational readiness.
Kolleru Lake
Context
- Kolleru Lake has gained renewed attention due to rising demand for traditional black dried fish.
- The value-added fish product supports hundreds of local fishing families.
What it is
- Kolleru Lake is one of India’s largest freshwater lakes.
- It is renowned for biodiversity, fisheries productivity, and wetland functions.
Location
- Located in Andhra Pradesh.
- Spreads across Krishna and West Godavari districts.
River System Association
- Lies in the inter-deltaic plain between the Krishna and Godavari rivers.
- Fed by seasonal streams, irrigation canals, and drainage channels linked to both rivers.
- Functions as a natural flood-balancing reservoir for Krishna–Godavari basin.
Geological and Physical Features
- Inter-deltaic freshwater basin enables seasonal water storage and groundwater recharge.
- Shallow wetland system with low depth and wide spread supports rich aquatic life.
- Flood moderation role reduces monsoon flood intensity in coastal Andhra Pradesh.
- Nutrient-rich alluvial sediments enhance fish productivity and aquatic vegetation growth.
Ecological Significance
- Declared a Wildlife Sanctuary in 1999, ensuring habitat protection.
- Designated a Ramsar Wetland in 2002, recognising international wetland importance.
- Serves as a major habitat for resident and migratory birds.
- Hosts nearly 20 million birds, including pelicans, storks, and ibises.
Biodiversity Importance
- Recognised as a biodiversity hotspot in peninsular India.
- Supports around 90 varieties of fish, sustaining inland fisheries.
- Contains diverse aquatic flora and fauna, crucial for wetland stability.
Economic and Social Relevance
- Fisheries form a primary livelihood source for surrounding rural communities.
- Traditional black dried fish processing adds value to local produce.
- Emerging domestic and international markets enhance income security for fisher families.
Conclusion
- Kolleru Lake represents a vital ecological, hydrological, and livelihood-supporting wetland.
- Sustainable management is essential to balance conservation, fisheries, and local economies.
