Indian labour Market

Prelims (GS - I) – Economy and social development

Mains (GS III) – Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

Why in news?

In recent times India's job market is struggling to keep up with its growing young population, with automation and lack of skills make it challenging to create adequate jobs.

What are the issues in Indian labour market?

• Job deficit – Working-age population of India has increased by about 9 crores, while formal sector jobs rose by 6 crores, which is a deficit of 50 lakh jobs annually.
• Inadequate formal employment – Most of the recent increase in employment has come either from self-employment in rural areas or from informal services.
• Lack of skilled labour force – Less than 10% of our labour force has any formal technical or vocational training.
• The majority of educated youth in India do not possess skills that make them employment ready.
• Inflated labour cost – The long-standing issue of  labour laws had artificially inflated the cost of labour and encouraged the adoption of capital-intensive technologies by firms.
• Mismatch in PLI allocation – The Production Linked Incentive scheme prioritizes high-value sectors like electronics, IT hardware, and drones with over 50% of the budget allocation.
• But most jobs are being created in industries like food processing and pharmaceuticals, not the high-value sectors.
• Lack of sustainability in job creation – Short -term subsidies under Employment Linked Incentive (2 -3 years) may not ensure durable employment or long -term skilling.

Why are the challenges in job creation?

• Rapid technological progress – Rapid technological progress and advent of AI makes firms to move towards capital intensive production process.
• It leads to persistent and steady decline in the labour intensity of production across sectors.

Capital Intensity of Production - Machinery dominates and less labour.

Labour Intensity of Production - Labour dominates and less machinery.

• Cheaper capital or machinery – With advancements in technology the relative cost of capital or machinery falls  and the firms adopt capital -intensive techniques to boost productivity and value -added at low cost.
• Devaluing redundant tasks – Tasks that are repetitive or less specialized become less valuable because machines can perform them more quickly and accurately.
• As technology advances, many tasks that were previously performed by humans are either automated or replaced by machines.
• Lack of skill upgradation – There aren't enough skilled workers available to match the demand for specialized jobs with advanced technical skills to work on high-tech machinery.
• Lack of coordination among ministries – Each ministry focuses on utilisation of its own PLI budget with little coordination with the ministries of labour and skilling.

What can be done to improve the labour market?

• Dynamic policy framework – To focus on creating a workforce for the future to advance the agenda of Viksit Bharat is critical.
• Linking PLI and ELI – Policymakers can consider linking the production and labour skilling strategies.
• It will ensure a pipeline of workers with requisite, complementary skills in these sectors.
• Graded incentives in ELI – Current structure of ELI incentives could be amended from flat to graded.
• Incentive transfers can be increased with each level of skills that is certified to support on-the-job training and upgrading of skills.
• Revamp training institutes – Rewarding the training institutes based on employment and earnings outcomes through skills that are linked to the projected future demand.
• Investment in workforce – As we collectively move up the production value chain, we must simultaneously invest in both the quantity and quality of our present and future workforce.
• Balance capital and labour – Incentives can be given to firms to adopt labour -complementary technologies and to reduce the relative cost of hiring through subsidies or tax credits.
• Data -driven policy - Track ELI interns and PLI outcomes longitudinally to evaluate effectiveness and adapt policies dynamically.

Reference

The Indian Express| India’s Job Market

Air Pollution

Mains Syllabus: GS III – Environmental pollution and degradation.

Why in the news?

 In the recently held 2^nd WHO conference on Air Pollution and Health, India has committed to reduce the health impacts of air pollution by 2040.

What is the status of air pollution in India?

 According to the WHO, Air pollution is the contamination of the indoor or outdoor environment by any chemical, physical, or biological agent that modifies the natural characteristics of the atmosphere.

• India’s pollution - According to the 2024 World Air Quality Report by IQAir, India ranked as the 5th  most polluted country  and 6 of the world's ten most polluted cities remain in India.
• According to the report, the country saw a 7 % decline in PM2.5 concentrations in 2024, averaging 50.6 micrograms per cubic metre.
• Air pollution mortality – Air pollution is causing 2 Million early deaths every year in India, as per CleanAirFund.
• Delhi pollution - For the first time in six years, the city did not witness even one day of ‘good’ air quality days (AQI lesser than 50) in 2024.

What are the major causes of air pollution in India?

• Vehicular Emissions – Rising vehicle numbers increase CO, NOx, PM2.5, and PM10, worsened by old vehicles, poor fuel quality, and traffic congestion.
• Industrial Pollution – Factories and power plants release SO₂, NOx, and particulate matter, with coal-based industries being major polluters.
• Agricultural Activities – Stubble burning in Punjab & Haryana emits PM2.5 & CO, while excessive fertilizer use adds NOx to the air.
• Household Biomass Burning – Use of wood, cow dung, and coal for cooking emits CO, black carbon, and fine particulates, impacting air quality and climate.
• Construction & Road Dust – Cement dust, silica, and unpaved roads contribute significantly to urban air pollution.
• Other reasons – Waste burning, stubble burning and deforestation.

What are the major Government Initiatives against air pollution?

• National Clean Air Programme (NCAP)- NCAP target has been revised to achieve up to a 40% reduction in PM10 levels or to meet national standards (60 µg/m³) by 2025-26.

• Focuses on monitoring, awareness, and pollution control measures at national, state, and city levels.

• Bharat VI Emission Standards- Introduced stricter vehicle emission norms to reduce air pollution from transportation.

• Pradhan Mantri Ujjwala Yojana (PMUY)- Provided free LPG connections to poor households, reducing indoor air pollution from biomass burning.
• Faster Adoption and Manufacturing of Electric Vehicles (FAME II)- Incentivizes the adoption of electric vehicles to reduce vehicular emissions.
• Swachh Bharat Mission - Focuses on waste management and reducing the open burning of solid waste, a key pollution source.
• Coal Phase-Out in National Capital Region (NCR)-Targeted measures to shut down coal-burning industries to control pollution in Delhi and surrounding areas.
• Air Quality Monitoring & Digital Tools – Investment has been made in AI-driven dashboards, smog towers, and pollution tracking systems for enhanced air quality management.

What are the challenges in combating air pollution?

• Governance Incapacity – Local governments, both rural and urban are not, adequately equipped with resources and data such as high-resolution, open-source data on emissions-generating activities  to handle air pollution.
• Without such data, air pollution remains an abstract issue, disconnected from daily governance
• Underutilization of funds - Between 2019 and 2023, only 60% of the funds released were utilised, reflecting not a lack of intent but institutional misalignment.
• Demographic pressure – Increasing population of 1.4 billion and rapid urbanization ( about 40% by 2030)  strains air quality;
• Socio-Economic Disparity – Rural and informal sectors lack pollution control, while urban areas get high-tech solutions, deepening inequality.
• Behavioral Norms – Biomass burning and waste incineration persist, with wood, coal, and kerosene driving high PM2.5 and PM10 levels.
• Economic Systems – More than 50% of India’s energy requirements are met through fossil fuels of coal, crude oil.

What lies ahead?

• India needs a phased, data-driven approach.
  • Phase I: Build local emissions profiles to identify the biggest pollution sources;
  • Phase II: Link funding directly to targeted actions based on that data;
  • Phase III: Track reductions in emissions, not just pollution concentrations, to measure real progress.
• Shifting to activity-based metrics — such as the number of stoves replaced or diesel buses retired — would offer a clearer picture of impact and strengthen accountability.
• To turn national goals into real progress, we need to connect them to the everyday activities that actually drive emissions.
• This shift from passive monitoring to proactive management mirrors how meaningful change happens on the ground.
• Separate funding can be created one for research and another for immediate, on-ground interventions.

References

The Hindu| India needs to clean its air

UPSC Daily Current Affairs| Prelim Bits 03-04-2025

Navika Sagar Parikrama-II Expedition

Prelims – Current events of national and international importance.

Why in news?

Recently, INSV Tarini entered Cape Town, South Africa, completing the 4^th leg of the Navika Sagar Parikrama II (NSP) expedition.

• It is global circumnavigation mission of Indian Navy.
• Flagged off in – October 2024.
• Undertaken by – 2 women officers of the Indian Navy.
• Onboard vessel – Indian Naval Sailing Vessel (INSV Tarini).
• Objectives – To cover more than 23,400 nautical miles in 8 months, with a scheduled return to Goa in May 2025.
• To further marine and scientific researches.
• To promote women empowerment in the Indian Armed Forces and is to motivate many young women to join the Services and Indian Navy in particular.
• Coverage – It will unfold in 5 legs with stop overs at 4 ports for replenishment and maintenance, as required.
• The broad contour of voyage will be as follows
  •  Goa to Fremantle, Australia
  •  Fremantle to Lyttleton, New Zealand
  •  Lyttleton to Port Stanley, Falkland (UK)
  • Port Stanley to Cape Town, South Africa
  • Cape Town to Goa
• 4^th stopover in South Africa – It is at Royal Cape Yacht Club in for 2 weeks, for scheduled maintenance and repairs.
• It exhibits the growing relations between India and South Africa and how India stands committed to strengthen its maritime cooperation with the friendly countries in the Indian Ocean Region.

In the recent past, Indian Naval Ship Talwar participated in the 8^th edition of Exercise IBSAMAR in October 2024 in South Africa. In January 2025, the latest stealth frigate of Indian Navy INS Tushil made a port call at Durban and engaged with the South African Navy and the Indian community in Kwa-Zulu Natal.

• Significance – It symbolises India's maritime endeavours, showcasing nation's prominence in global maritime activities and Indian Navy's commitment to excellence and women empowerment.
• It is a significant step in fostering maritime consciousness, embodying the spirit of Sashakt and Saksham India (Strong and Abled India).
• It is 1^st ever circumnavigation of the globe onboard a sailing vessel by Indian women in double handed mode.

The indigenously built INSV Tarini is a 56-foot sailing vessel, which was inducted in the Indian Navy in 2018 and has participated in many such expeditions earlier. The vessel is a true testament of ‘Make in India’ and Aatmanirbhar Bharat initiative of the Government of India.

Reference

PIB| INSV Tarini in South Africa as a part of NSP 2^nd Edition

International Treaty on Plant Genetic Resources for Food and Agriculture

Prelims – Current events of national and international importance | General issues on Environmental ecology, Bio-diversity and Climate Change

Mains – GS-III (Conservation, environmental pollution and degradation, environmental impact assessment)

Why in news?

The 13^th meeting of the Ad Hoc Working Group under the International Treaty on Plant Genetic Resources for Food and Agriculture is discussing controversial amendments that could dilute benefit-sharing provisions.

• International Treaty on Plant Genetic Resources for Food and Agriculture, also called as Plant Treaty.
• Objective – Conservation and sustainable use of all plant genetic resources for food and agriculture and the fair and equitable sharing of the benefits arising out of their use.
• It is in harmony with the Convention on Biological Diversity, for sustainable agriculture and food security.
• It is signed by many countries including India.
• Multilateral System (MLS) – It is administered by the ITPGRFA.
• It is a global system facilitating access to plant genetic resources for food and agriculture (PGRFA) and ensuring fair and equitable benefit-sharing among countries.
• It is the International Treaty's truly innovative solution to access and benefit-sharing, which includes 64 of the world’s most important crops.

Proposed Amendments & Concerns

• The Proposed Change Allow all plant species to be included if they have traits useful for food/forage breeding.

Implications on Developing Countries

• Loss of Sovereignty – Developing countries, rich in biodiversity, fear losing sovereign rights over their plants.
• The proposal could force them to share everything under a Standard Material Transfer Agreement, reducing their say.
• Unfair Benefits – The current system ensures benefits return to providers. Expanding access might dilute this, favouring richer nations or corporations.
• Bio piracy Risk – Free access could lead to exploitation, including “digital bio piracy,” where genetic data is used without permission.
• Food Security Threat – Instead of protecting food crops for global hunger, this might weaken local farmers and seed systems.

Reference

Down to Earth | Plant Treaty

The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006

Prelims (GS – I) – Indian Polity and Governance-Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues, etc.

Mains (GS - II & III) – GS II (Government policies and interventions for development in various sectors and issues arising out of their design and implementation) | GS III (Conservation, environmental pollution and degradation, environmental impact assessment)

Why in news?

Ahead of the Supreme Court hearing (April 2, 2025) on the Forest Rights Act (FRA), 2006, Adivasi rights groups and environmental organizations have urged the Tribal Affairs Ministry to defend the law.

• Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 – Also known as Forest Rights Act (FRA), 2006.
• The Act aims to legally recognize and protect the rights of tribal communities and other traditional forest dwellers over the forest land and resources they have traditionally used.
• Key Provisions
• Individual Forest Rights (IFR) – Land titles for cultivation/habitation.
• Community Forest Rights (CFR) – Rights over forest resources and management.
• Gram Sabha’s Role – Primary authority to initiate and verify claims.
• Legal challenges – In 2008, Wildlife First, an NGO challenged the FRA in the Supreme Court, arguing that it led to forest encroachments.
• The court later ordered the eviction of people whose FRA claims were rejected (2019).
• After protests, the Tribal Affairs Ministry intervened, pointing out wrongful rejections due to procedural flaws.
• The SC stayed the eviction order and asked for a review of rejected claims.

Current Concerns

• Improper Review of Rejected Claims – States conducted arbitrary reviews, leading to repeated rejections.
• Undermining Gram Sabhas – Gram Sabhas (village councils), which are supposed to be key decision-makers under FRA, were side-lined in many cases.
• Higher authorities such as Sub-Divisional Level Committee (SDLC) overruled Gram Sabha approvals (e.g., Gujarat: 98% approved by Gram Sabhas, but only 62% accepted by SDLC).
• Over-Reliance on Satellite Imagery – States like Gujarat and Madhya Pradesh relied heavily on satellite images to verify claims without ground verification, leading to wrongful rejections.
• The Tribal Affairs Ministry had raised concerns about misuse of technology, as it bypasses the FRA’s evidence requirements (e.g., community records, historical proof).

Reference

The Hindu | Forest Rights Act (FRA), 2006

Frankincense

Prelims – Environmental Ecology & Climate Change, International Relations.

Mains – GS-III (Conservation, environmental pollution and degradation, environmental impact assessment).

Why in news?

The International Union for Conservation of Nature (IUCN) has recently issued a warning, highlighting the extinction risk faced by Frankincense-producing trees (Boswellia species).

• Frankincense – Is a fragrant resin obtained from various species of trees belonging to the Boswellia genus.
• The five main species of Boswellia are:
  1. Boswellia carterii
  2. Boswellia serrata (Indian Frankincense)
  3. Boswellia sacra
  4. Boswellia frereana
  5. Boswellia papyrifera

Significance

• Historically famous as one of the three gifts (along with gold and myrrh) brought to the infant Jesus.

• Used for centuries in perfumes and incense.
• Research suggests potential medicinal benefits due to its anti-inflammatory properties (for conditions like ulcerative colitis, IBS, bronchitis, sinusitis) and possible use in reducing asthma risk.
• Frankincense was once considered more valuable than gold and was reserved for royalty.
• Frankincense remains deeply embedded in Dhofari culture, symbolizing warmth, respect, and hospitality.

Dhofari culture, found in the Dhofar region of Oman, is a rich tapestry woven from influences of the Arabian Peninsula, East Africa, and the Indian subcontinent.

• It played a significant role in cultural exchange between Oman and India.
• IUCN Red List Update – Multiple Boswellia species on Yemen's Socotra Island have recently been moved to more threatened conservation status categories (Endangered/Critically Endangered).

Causes of Decline

• Overgrazing – Goats graze on saplings, exacerbated by the decline of traditional rotational grazing and larger herd sizes.

• Climate Change Impacts – Prolonged droughts hinder sapling survival, while more frequent and intense cyclones, floods, and landslides damage or uproot mature trees.

Way forward

• Building fences to protect young trees from goats.
• Promoting frankincense honey production for alternative income.
• Emphasizing the need for local action to combat extreme weather impacts.

References

1. Down to Earth | Frankincense
2. Mint | Frankincense

Banking Laws (Amendment) act, 2024

Prelims – Current events of national and international importance.

Mains – GS III (Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment | Government Budgeting)

Why in news?

Recently, Parliament passed the Banking Laws (Amendment) Bill, 2024.

• The Banking Laws (Amendment) Bill, 2024 was introduced in Lok Sabha on August 9, 2024. 
• The bill was passed in Rajya sabha on March 26, 2025.
• It amends five acts including:

1. Reserve Bank of India (RBI) Act, 1934.
2. Banking Regulation Act, 1949.
3. State Bank of India Act, 1955.
4. Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970.
5. Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.

Key features of the act:

• Definition of Fortnight for Cash Reserves – Currently, banks maintain cash reserves based on a 14-day period (Saturday to the second Friday).
• The Bill changes the definition of fortnight to 1^st day to 15^th day of each month or 16^th day to the last day of each month.
• Tenure of Directors in Co-operative Banks – Directors (except chairman/whole-time director) can serve 10 years instead of 8 years.
• Common Directors in Co-operative Banks – Directors of central co-operative banks can also serve on the board of state co-operative banks.
• Change Substantial Interest in a Company – Substantial interest in a company refers to holding shares of over five lakh rupees or 10% of the paid-up capital of the company, whichever is less.
• This may be held by an individual, his spouse, or minor child, either individually or collectively.
  • New rule – The threshold in the substantial interest in a company has been increased from five lakh rupees to 2 crore rupees.
• Nomination Rules – The Current Rule allows single nominee for bank deposits/lockers.
• The Amendment allows up to 4 nominees successive/simultaneous).
• Nominations can be simultaneous (divided in a set proportion) or successive (priority-based).
• Unclaimed Amounts & Investor Education Fund – Money unclaimed for 7 years will be transferred to the Investor Education and Protection Fund (IEPF).
• Remuneration of Bank Auditors – Instead of RBI fixing auditor salaries, banks will now decide their auditors' remuneration.

Reference

1. The Business Standard |  Banking Laws (Amendment) act, 2024
2. PRS India | Banking Laws (Amendment) Bill, 2024

Navika Sagar Parikrama-II Expedition

Prelims – Current events of national and international importance.

Why in news?

Recently, INSV Tarini entered Cape Town, South Africa, completing the 4^th leg of the Navika Sagar Parikrama II (NSP) expedition.

• It is global circumnavigation mission of Indian Navy.
• Flagged off in – October 2024.
• Undertaken by – 2 women officers of the Indian Navy.
• Onboard vessel – Indian Naval Sailing Vessel (INSV Tarini).
• Objectives – To cover more than 23,400 nautical miles in 8 months, with a scheduled return to Goa in May 2025.
• To further marine and scientific researches.
• To promote women empowerment in the Indian Armed Forces and is to motivate many young women to join the Services and Indian Navy in particular.
• Coverage – It will unfold in 5 legs with stop overs at 4 ports for replenishment and maintenance, as required.
• The broad contour of voyage will be as follows
  •  Goa to Fremantle, Australia
  •  Fremantle to Lyttleton, New Zealand
  •  Lyttleton to Port Stanley, Falkland (UK)
  • Port Stanley to Cape Town, South Africa
  • Cape Town to Goa
• 4^th stopover in South Africa – It is at Royal Cape Yacht Club in for 2 weeks, for scheduled maintenance and repairs.
• It exhibits the growing relations between India and South Africa and how India stands committed to strengthen its maritime cooperation with the friendly countries in the Indian Ocean Region.

In the recent past, Indian Naval Ship Talwar participated in the 8^th edition of Exercise IBSAMAR in October 2024 in South Africa. In January 2025, the latest stealth frigate of Indian Navy INS Tushil made a port call at Durban and engaged with the South African Navy and the Indian community in Kwa-Zulu Natal.

• Significance – It symbolises India's maritime endeavours, showcasing nation's prominence in global maritime activities and Indian Navy's commitment to excellence and women empowerment.
• It is a significant step in fostering maritime consciousness, embodying the spirit of Sashakt and Saksham India (Strong and Abled India).
• It is 1^st ever circumnavigation of the globe onboard a sailing vessel by Indian women in double handed mode.

The indigenously built INSV Tarini is a 56-foot sailing vessel, which was inducted in the Indian Navy in 2018 and has participated in many such expeditions earlier. The vessel is a true testament of ‘Make in India’ and Aatmanirbhar Bharat initiative of the Government of India.

Reference

PIB| INSV Tarini in South Africa as a part of NSP 2^nd Edition

International Treaty on Plant Genetic Resources for Food and Agriculture

Prelims – Current events of national and international importance | General issues on Environmental ecology, Bio-diversity and Climate Change

Mains – GS-III (Conservation, environmental pollution and degradation, environmental impact assessment)

Why in news?

The 13^th meeting of the Ad Hoc Working Group under the International Treaty on Plant Genetic Resources for Food and Agriculture is discussing controversial amendments that could dilute benefit-sharing provisions.

• International Treaty on Plant Genetic Resources for Food and Agriculture, also called as Plant Treaty.
• Objective – Conservation and sustainable use of all plant genetic resources for food and agriculture and the fair and equitable sharing of the benefits arising out of their use.
• It is in harmony with the Convention on Biological Diversity, for sustainable agriculture and food security.
• It is signed by many countries including India.
• Multilateral System (MLS) – It is administered by the ITPGRFA.
• It is a global system facilitating access to plant genetic resources for food and agriculture (PGRFA) and ensuring fair and equitable benefit-sharing among countries.
• It is the International Treaty's truly innovative solution to access and benefit-sharing, which includes 64 of the world’s most important crops.

Proposed Amendments & Concerns

• The Proposed Change Allow all plant species to be included if they have traits useful for food/forage breeding.

Implications on Developing Countries

• Loss of Sovereignty – Developing countries, rich in biodiversity, fear losing sovereign rights over their plants.
• The proposal could force them to share everything under a Standard Material Transfer Agreement, reducing their say.
• Unfair Benefits – The current system ensures benefits return to providers. Expanding access might dilute this, favouring richer nations or corporations.
• Bio piracy Risk – Free access could lead to exploitation, including “digital bio piracy,” where genetic data is used without permission.
• Food Security Threat – Instead of protecting food crops for global hunger, this might weaken local farmers and seed systems.

Reference

Down to Earth | Plant Treaty

The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006

Prelims (GS – I) – Indian Polity and Governance-Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues, etc.

Mains (GS - II & III) – GS II (Government policies and interventions for development in various sectors and issues arising out of their design and implementation) | GS III (Conservation, environmental pollution and degradation, environmental impact assessment)

Why in news?

Ahead of the Supreme Court hearing (April 2, 2025) on the Forest Rights Act (FRA), 2006, Adivasi rights groups and environmental organizations have urged the Tribal Affairs Ministry to defend the law.

• Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 – Also known as Forest Rights Act (FRA), 2006.
• The Act aims to legally recognize and protect the rights of tribal communities and other traditional forest dwellers over the forest land and resources they have traditionally used.
• Key Provisions
• Individual Forest Rights (IFR) – Land titles for cultivation/habitation.
• Community Forest Rights (CFR) – Rights over forest resources and management.
• Gram Sabha’s Role – Primary authority to initiate and verify claims.
• Legal challenges – In 2008, Wildlife First, an NGO challenged the FRA in the Supreme Court, arguing that it led to forest encroachments.
• The court later ordered the eviction of people whose FRA claims were rejected (2019).
• After protests, the Tribal Affairs Ministry intervened, pointing out wrongful rejections due to procedural flaws.
• The SC stayed the eviction order and asked for a review of rejected claims.

Current Concerns

• Improper Review of Rejected Claims – States conducted arbitrary reviews, leading to repeated rejections.
• Undermining Gram Sabhas – Gram Sabhas (village councils), which are supposed to be key decision-makers under FRA, were side-lined in many cases.
• Higher authorities such as Sub-Divisional Level Committee (SDLC) overruled Gram Sabha approvals (e.g., Gujarat: 98% approved by Gram Sabhas, but only 62% accepted by SDLC).
• Over-Reliance on Satellite Imagery – States like Gujarat and Madhya Pradesh relied heavily on satellite images to verify claims without ground verification, leading to wrongful rejections.
• The Tribal Affairs Ministry had raised concerns about misuse of technology, as it bypasses the FRA’s evidence requirements (e.g., community records, historical proof).

Reference

The Hindu | Forest Rights Act (FRA), 2006

Frankincense

Prelims – Environmental Ecology & Climate Change, International Relations.

Mains – GS-III (Conservation, environmental pollution and degradation, environmental impact assessment).

Why in news?

The International Union for Conservation of Nature (IUCN) has recently issued a warning, highlighting the extinction risk faced by Frankincense-producing trees (Boswellia species).

• Frankincense – Is a fragrant resin obtained from various species of trees belonging to the Boswellia genus.
• The five main species of Boswellia are:
  1. Boswellia carterii
  2. Boswellia serrata (Indian Frankincense)
  3. Boswellia sacra
  4. Boswellia frereana
  5. Boswellia papyrifera

Significance

• Historically famous as one of the three gifts (along with gold and myrrh) brought to the infant Jesus.
• Used for centuries in perfumes and incense.
• Research suggests potential medicinal benefits due to its anti-inflammatory properties (for conditions like ulcerative colitis, IBS, bronchitis, sinusitis) and possible use in reducing asthma risk.
• Frankincense was once considered more valuable than gold and was reserved for royalty.
• Frankincense remains deeply embedded in Dhofari culture, symbolizing warmth, respect, and hospitality.

Dhofari culture, found in the Dhofar region of Oman, is a rich tapestry woven from influences of the Arabian Peninsula, East Africa, and the Indian subcontinent.

• It played a significant role in cultural exchange between Oman and India.
• IUCN Red List Update – Multiple Boswellia species on Yemen's Socotra Island have recently been moved to more threatened conservation status categories (Endangered/Critically Endangered).

Causes of Decline

• Overgrazing – Goats graze on saplings, exacerbated by the decline of traditional rotational grazing and larger herd sizes.
• Climate Change Impacts – Prolonged droughts hinder sapling survival, while more frequent and intense cyclones, floods, and landslides damage or uproot mature trees.

Way forward

• Building fences to protect young trees from goats.
• Promoting frankincense honey production for alternative income.
• Emphasizing the need for local action to combat extreme weather impacts.

References

1. Down to Earth | Frankincense
2. Mint | Frankincense

Banking Laws (Amendment) act, 2024

Prelims – Current events of national and international importance.

Mains – GS III (Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment | Government Budgeting)

Why in news?

Recently, Parliament passed the Banking Laws (Amendment) Bill, 2024.

• The Banking Laws (Amendment) Bill, 2024 was introduced in Lok Sabha on August 9, 2024. 
• The bill was passed in Rajya sabha on March 26, 2025.
• It amends five acts including:

1. Reserve Bank of India (RBI) Act, 1934.
2. Banking Regulation Act, 1949.
3. State Bank of India Act, 1955.
4. Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970.
5. Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.

Key features of the act:

• Definition of Fortnight for Cash Reserves – Currently, banks maintain cash reserves based on a 14-day period (Saturday to the second Friday).
• The Bill changes the definition of fortnight to 1^st day to 15^th day of each month or 16^th day to the last day of each month.
• Tenure of Directors in Co-operative Banks – Directors (except chairman/whole-time director) can serve 10 years instead of 8 years.
• Common Directors in Co-operative Banks – Directors of central co-operative banks can also serve on the board of state co-operative banks.
• Change Substantial Interest in a Company – Substantial interest in a company refers to holding shares of over five lakh rupees or 10% of the paid-up capital of the company, whichever is less.
• This may be held by an individual, his spouse, or minor child, either individually or collectively.
  • New rule – The threshold in the substantial interest in a company has been increased from five lakh rupees to 2 crore rupees.
• Nomination Rules – The Current Rule allows single nominee for bank deposits/lockers.
• The Amendment allows up to 4 nominees successive/simultaneous).
• Nominations can be simultaneous (divided in a set proportion) or successive (priority-based).
• Unclaimed Amounts & Investor Education Fund – Money unclaimed for 7 years will be transferred to the Investor Education and Protection Fund (IEPF).
• Remuneration of Bank Auditors – Instead of RBI fixing auditor salaries, banks will now decide their auditors' remuneration.

References

1. The Business Standard |  Banking Laws (Amendment) act, 2024
2. PRS India | Banking Laws (Amendment) Bill, 2024