1.The Fertilizer Challenge Amid the Iran War
Source: The Indian Express
Why in News
• The ongoing US-Israel versus Iran conflict and the closure of the Strait of Hormuz since February 2026 have triggered a major global fertilizer supply disruption.
• India, which depends heavily on the Persian Gulf for both finished fertilizers and Liquefied Natural Gas (LNG) used in domestic urea production, is facing serious risks for Kharif and upcoming Rabi crop seasons.
• Rising prices of urea, ammonia, sulphur, and DAP have intensified concerns regarding food security, fertilizer subsidies, and agricultural productivity.
About the Fertilizer Challenge
• The fertilizer challenge refers to India’s strategic vulnerability arising from excessive dependence on Gulf countries for fertilizer imports and energy feedstock.
• The Strait of Hormuz is the main maritime corridor through which a large share of India’s imported urea, LNG, ammonia, and sulphur moves.
• Any disruption in this route directly affects fertilizer availability, domestic production capacity, and ultimately crop output.
• Since Indian agriculture remains heavily dependent on chemical fertilizers, especially urea, external geopolitical conflicts quickly become domestic agricultural crises.
Source: Indian Express
Key Data and Current Situation
• Urea import bids rose sharply from around $510 per tonne in February to nearly $950 per tonne in April 2026 due to the Hormuz blockade.
• For Kharif 2026, India requires about 19.4 million tonnes of urea, while opening stocks were only 5.5 million tonnes.
• Domestic urea production normally stands at around 2.5 million tonnes per month, but it dropped to nearly 1.5 million tonnes in March 2026 because of LNG shortages.
• GCC countries including Oman, Qatar, Saudi Arabia, UAE, and Bahrain account for nearly 40 percent of India’s urea imports and over 60 percent of LNG imports.
• Prices of raw materials like ammonia and sulphur have also surged sharply, increasing production costs further.
Why Fertilizers Are Critical for India?
• India consumes nearly 39–40 million tonnes of urea annually, making it the most important fertilizer for crops such as rice, wheat, sugarcane, and maize.
• Fertilizers remain the backbone of the Green Revolution production model and directly influence foodgrain output and food inflation.
• Heavy subsidy on urea has made farmers highly dependent on nitrogen-based fertilizers, creating both productivity dependence and nutrient imbalance.
• Shortage during Kharif affects sowing immediately, while prolonged disruption threatens the Rabi season more severely.
• Since fertilizers determine yield stability, supply shocks become national food security concerns.
Government Response and Existing Measures
• India has started diversifying sourcing of ammonia and DAP toward countries like Morocco, Jordan, Indonesia, and Malaysia to reduce Gulf dependence.
• Indian Potash Limited issued emergency tenders for 2.5 million tonnes of urea to secure supply before peak sowing.
• The government has extended loading deadlines for import vessels affected by conflict-zone shipping delays.
• Farmers are being encouraged to use alternatives like Single Super Phosphate (SSP) and Triple Super Phosphate (TSP) where feasible.
• Efforts are also being made to stabilize fertilizer distribution and prevent panic buying and hoarding.
Challenges Associated with the Crisis
• The closure of the Strait of Hormuz is not merely a price issue but a physical chokepoint problem where ships cannot move regardless of willingness to pay.
• Higher import prices significantly increase the fertilizer subsidy burden on the Union Budget, creating fiscal pressure.
• Shipping companies face high war-risk insurance premiums and avoid conflict zones, worsening logistical bottlenecks.
• Domestic fertilizer plants are also affected because they depend on imported LNG, reducing local production capacity.
• Shortages create black marketing, hoarding, and unequal access, especially harming small and marginal farmers.
Way Forward
• India must accelerate the use of Nano Urea and Nano DAP, which reduce bulk fertilizer dependence and improve nutrient efficiency.
• Fertilizer fortification with micronutrients like Zinc and Boron should be promoted to increase yield with lower input intensity.
• Biological alternatives such as biostimulants and phosphate-solubilizing bacteria should be scaled up to reduce dependence on imported chemicals.
• Long-term diversification of LNG and fertilizer supply chains must be treated as a strategic national priority.
• Diplomatic engagement should focus on securing neutral trade corridors for essential commodities like fertilizers and energy supplies during conflicts.
Conclusion
• The Iran war has exposed how closely India’s food security is tied to global energy and maritime stability.
• A fertilizer shortage is not just an agricultural problem—it directly affects inflation, rural livelihoods, and national economic stability.
• While emergency imports may protect the immediate Kharif season, long-term resilience requires a shift toward nutrient-efficient technologies and diversified supply chains.
• Securing fertilizer access is therefore not only an agricultural necessity but also a matter of strategic sovereignty.
Prelims MCQ
Q. With reference to India’s fertilizer sector, consider the following statements:
- Urea production in India depends significantly on imported Liquefied Natural Gas (LNG).
- The Strait of Hormuz is strategically important for India’s fertilizer and energy imports.
- Nano Urea is promoted to reduce dependence on bulk imported fertilizers.
Which of the statements given above are correct?
(a) 1 and 2 only(b) 2 and 3 only(c) 1, 2 and 3(d) 1 and 3 only
Answer: (c)
Mains Question
Q. Discuss how geopolitical conflicts in West Asia affect India’s fertilizer security. Examine the challenges posed by the Strait of Hormuz disruption and suggest long-term solutions for reducing India’s fertilizer vulnerability.
2.Accelerating India’s High-Value Crop Diversification
Source: PIB
Why in News?
• The Union Budget 2026–27 has introduced a crop-specific and regionally differentiated strategy to accelerate diversification into high-value crops across India’s coastal, North Eastern, and Himalayan regions.
• The focus is on moving agriculture from low-return cereal dominance toward horticulture, plantation crops, spices, medicinal plants, and export-oriented commercial farming.
• This strategy aims to improve farmer incomes, strengthen agro-processing, and promote region-based agricultural specialization.
About High-Value Crops
• High-value crops (HVCs) mainly include fruits, vegetables, flowers, spices, plantation crops, medicinal plants, aromatic plants, nuts, and specialty horticultural produce.
• These crops generate much higher returns per unit of land compared to traditional staple crops such as rice, wheat, and pulses.
• They are called high-value because they create stronger market linkages, better export opportunities, and more employment per hectare.
• HVCs are also critical for nutritional security as they supply vitamins, minerals, and diversified diets beyond cereals.
Source: PIB
Key Data and Current Status
• India ranks second globally in coconut production, contributing around 22.44 percent of world production and supporting nearly 30 million livelihoods.
• In 2024–25, cashew exports reached USD 369.17 million while cocoa exports stood at USD 295.58 million.
• Total horticultural production increased to 370.74 million tonnes in 2024–25, showing strong growth over previous decades.
• India has nearly 150 million agarwood trees, with around 90 percent concentrated in North Eastern states like Tripura and Assam.
• India is the world’s largest producer of onions and shallots and ranks second in vegetables, fruits, and potatoes.
Importance of Horticulture in Agricultural Growth
• Horticulture contributes nearly 37 percent of the Gross Value Output (GVO) of the agricultural crops sub-sector.
• It has recorded around 4.45 percent annual growth over the last decade, which is higher than traditional crop agriculture.
• High-value crops are labour-intensive and create substantial employment opportunities in rural, tribal, and hilly regions.
• They strengthen agro-processing industries such as food processing, essential oils, floriculture, and export chains.
• Diversification toward HVCs improves resilience against cereal price shocks and supports income security for farmers.
Region-Specific Diversification Strategy
• Coastal regions are focusing on coconut, cashew, cocoa, and sandalwood with replacement of old trees by high-yielding varieties and premium branding of Indian cashew.
• North Eastern states are emphasizing agarwood cultivation linked to the global Oud market, with strong export potential and CITES-regulated trade opportunities.
• Himalayan and hilly regions such as Jammu & Kashmir and Himachal Pradesh are promoting walnuts, almonds, and Chilgoza pine nuts through high-density cultivation.
• Cocoa is being promoted as an intercrop in coconut and arecanut plantations to improve land productivity and provide additional farmer income.
• Institutions like the Coconut Development Board and Directorate of Cashewnut and Cocoa Development are supporting nursery modernization and farmer training.
Challenges Associated with Diversification
• Transitioning to perennial crops like sandalwood, agarwood, and nuts requires high initial investment and long waiting periods before returns begin.
• Horticultural crops are highly perishable and require strong cold-chain infrastructure to reduce post-harvest losses.
• Climate change is affecting snowfall, rainfall, and temperature stability, especially in hilly horticulture zones.
• Small and fragmented landholdings reduce economies of scale and limit efficient processing and marketing.
• Meeting international phytosanitary standards remains difficult for exports to premium markets like the EU and USA.
Way Forward
• Post-Harvest Management infrastructure under schemes like Mission for Integrated Development of Horticulture (MIDH) must be strengthened.
• Farmer Producer Organizations (FPOs) should be expanded in coconut, cashew, and horticulture clusters to improve collective bargaining and market access.
• India should build premium international branding for Indian sandalwood, cocoa, and specialty horticulture products.
• Geospatial mapping and digital monitoring should be used for agarwood plantations and high-density orchards for better yield forecasting.
• Rural youth and startups should be encouraged to enter value-added processing such as virgin coconut oil, fermented cocoa, essential oils, and packaged nut products.
Conclusion
• High-value crop diversification represents a major shift from subsistence agriculture to commercially viable and export-oriented farming.
• By aligning crops with regional agro-climatic strengths, India can create a stronger agriculture-industry-export linkage.
• The Union Budget 2026–27 strategy recognizes that future agricultural prosperity lies not only in foodgrain security but also in farmer profitability and value creation.
• A successful transition to high-value crops can transform Indian farmers from producers of raw output into participants in global value chains.
Prelims MCQ
Q. With reference to High-Value Crops (HVCs), consider the following statements:
- They mainly include horticultural crops such as fruits, vegetables, spices, and plantation crops.
- They generate lower returns per hectare compared to cereals like wheat and rice.
- They are generally more labour-intensive than staple cereal crops.
Which of the statements given above are correct?
(a) 1 and 3 only(b) 2 and 3 only(c) 1 and 2 only(d) 1, 2 and 3
Answer: (a)
Mains Question
Q.Discuss the significance of high-value crop diversification in India’s agricultural transformation. Examine the region-specific strategies introduced in Union Budget 2026–27 and the challenges associated with horticulture-led growth.
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3.G20 Satellite
Source: The Hindu
Why in News?
• Indian Space Research Organisation (ISRO) Chairman V. Narayanan announced that the proposed G20 Satellite is expected to be launched in 2027 for G20 member nations.
• The satellite is being planned as a collaborative Earth observation mission led by India to support climate monitoring, pollution tracking, and disaster forecasting for G20 countries.
• The initiative reflects India’s growing role in global space diplomacy and scientific cooperation.
About G20 Satellite
• The G20 Satellite is a proposed common Earth observation satellite being developed under India’s leadership for the collective benefit of G20 member nations.
• It is intended to provide shared satellite-based environmental and climate data that can support global policymaking and sustainable development.
• The satellite will focus on monitoring climate-sensitive indicators, atmospheric conditions, pollution levels, and weather-related risks.
• It represents an effort to use space technology as a tool for international cooperation rather than only national strategic use.
Source: The Hindu
Objectives of the Satellite
• To create a shared platform for climate monitoring and environmental observation among G20 countries.
• To improve early warning systems for disasters such as cyclones, floods, droughts, and extreme weather events.
• To strengthen scientific cooperation in addressing global challenges like climate change and transboundary pollution.
• To enhance India’s leadership in peaceful space cooperation and technology-driven diplomacy.
Key Features
• It will function as a climate observation platform capable of tracking greenhouse gas concentrations, atmospheric changes, and ecological stress indicators.
• It will help monitor aerosol movement, air pollution hotspots, and pollution flows across national boundaries.
• It will improve weather observation and forecasting through real-time Earth observation systems.
• It will support better management of environmental disasters and improve preparedness through early warning mechanisms.
• The data generated will be useful for governments, research institutions, and policy planners across G20 countries.
Significance for India
• India’s leadership in this project strengthens its image as a major global space power with technological credibility.
• It expands India’s soft power by using scientific cooperation as an instrument of diplomacy.
• The mission supports India’s broader vision of “Vasudhaiva Kutumbakam” by promoting collective global solutions.
• It reinforces the role of ISRO as not only a national agency but also a contributor to international public goods.
• It may create new opportunities for India in satellite services, Earth observation technology, and international partnerships.
Global Importance
• Climate change and pollution are transnational problems that require shared scientific data and coordinated policy responses.
• A common satellite platform improves trust and transparency in environmental monitoring among major economies.
• It strengthens the climate agenda of the G20 by providing evidence-based tools for action rather than only declarations.
• Better forecasting of disasters can reduce economic losses and save lives across multiple countries.
• It also encourages responsible and peaceful uses of outer space for sustainable development.
Challenges
• Sharing sensitive Earth observation data among multiple countries may raise strategic and security concerns.
• Different G20 members may have varying expectations regarding access, control, and use of satellite-generated information.
• Funding, operational coordination, and governance structure need clear institutional arrangements.
• Long-term success depends on data-sharing trust and sustained political commitment beyond launch.
• Integration of satellite data into domestic policy systems across all G20 countries may remain uneven.
Way Forward
• India should establish a clear governance and data-sharing framework to ensure transparency and confidence among G20 partners.
• Capacity-building support should be extended to developing G20 members for effective use of satellite data.
• The mission should be linked with climate adaptation planning, SDGs, and disaster resilience frameworks.
• Strong institutional coordination between ISRO, environment ministries, and international agencies will be essential.
• The satellite should become a permanent model for future multilateral scientific cooperation beyond the G20 framework.
Conclusion
• The G20 Satellite represents a major step in transforming space technology into a shared global public good.
• By combining climate science, disaster resilience, and international cooperation, the mission reflects the future direction of global governance.
• India’s leadership in this initiative strengthens both its strategic standing and its moral authority in international affairs.
• In the coming decades, such cooperative missions may define how nations respond collectively to planetary challenges.
Prelims MCQ
Q. With reference to the proposed G20 Satellite, consider the following statements:
- It is primarily intended for military surveillance among G20 countries.
- It is proposed as a collaborative Earth observation satellite led by India.
- It aims to support climate monitoring and disaster forecasting.
Which of the statements given above are correct?
(a) 2 and 3 only(b) 1 and 2 only(c) 1 and 3 only(d) 1, 2 and 3
Answer: (a)
Mains Question
Q.Discuss the significance of the proposed G20 Satellite as an instrument of climate governance and space diplomacy. How can such collaborative missions strengthen India’s role in global environmental leadership?
4.Bharat Maritime Insurance Pool (BMI Pool)
Source: The Hindu
Why in News?
• The Union Cabinet has approved the creation of the Bharat Maritime Insurance Pool (BMI Pool), supported by a ₹12,980 crore sovereign guarantee.
• The initiative aims to ensure uninterrupted insurance coverage for Indian vessels, especially during geopolitical conflicts, sanctions, or withdrawal of international insurers.
• The move gains importance amid instability in West Asia and disruptions in strategic maritime routes such as the Strait of Hormuz and the Red Sea.
Source: The Hindu
About Bharat Maritime Insurance Pool
• The BMI Pool is a domestic, state-backed maritime insurance mechanism created to provide comprehensive insurance coverage for Indian shipping interests.
• It is designed for Indian-flagged vessels, Indian-controlled vessels, and foreign vessels trading to or from Indian ports.
• The pool acts as a strategic financial shield so that India’s maritime trade does not stop if global insurers withdraw protection due to war risks, sanctions, or geopolitical instability.
• It strengthens India’s maritime security by reducing excessive dependence on foreign marine insurance systems.
Objectives of the BMI Pool
• To reduce India’s dependence on the International Group of Protection and Indemnity (IGP&I) Clubs, which dominate global marine insurance.
• To provide affordable and reliable insurance for Indian ships operating in volatile maritime corridors.
• To ensure uninterrupted trade flows, especially for crude oil, LNG, fertilizers, and strategic imports.
• To maintain sovereign control over maritime trade and protect Indian shipping from the impact of foreign sanctions or insurance disruptions.
Organizations Involved
• A newly constituted governing body will supervise the structure and day-to-day functioning of the BMI Pool.
• Domestic insurance companies will participate as Pool Members and collectively provide underwriting capacity.
• These insurers together offer an underwriting capacity of nearly ₹950 crore for issuing policies.
• The Government of India provides a sovereign guarantee of ₹12,980 crore as a financial backstop against large-scale claims.
Key Features of the BMI Pool
• It provides comprehensive maritime risk coverage instead of only limited insurance support.
• Hull and Machinery (H&M) insurance covers physical damage to ships and onboard machinery.
• Cargo insurance protects the goods being transported through maritime trade routes.
• Protection and Indemnity (P&I) covers third-party liabilities such as oil pollution, crew injury, wreck removal, and cargo damage.
• War Risk insurance protects ships operating in conflict-prone maritime zones.
• Coverage extends not only to Indian-flagged vessels but also to Indian-controlled ships and foreign ships connected to Indian ports.
• Insurance policies are managed domestically, allowing terms suitable for Indian commercial and regulatory realities.
Significance
• If international P&I Clubs withdraw support because of sanctions or conflict, the BMI Pool ensures that Indian shipping and trade continue without disruption.
• It protects strategic imports such as crude oil, fertilizers, and LNG which are vital for India’s economy and energy security.
• Domestic underwriting reduces foreign exchange outflow that currently goes abroad as insurance premiums.
• It strengthens India’s maritime sovereignty and supports the broader vision of strategic economic self-reliance.
• It also helps develop Indian expertise in marine underwriting, maritime legal systems, and claims settlement.
Challenges
• Marine insurance involves very high-value and unpredictable risks, especially in war zones, making financial sustainability difficult.
• Building domestic expertise comparable to established global P&I Clubs will take time and institutional capacity.
• Trust and credibility among ship owners and international trade partners must be developed for the new pool to be widely accepted.
• Large claims from major oil spills or wartime losses can create serious financial pressure despite sovereign backing.
• Coordination between insurers, regulators, shipping companies, and ports must remain strong for effective implementation.
Way Forward
• India should gradually strengthen domestic marine underwriting capabilities through training and specialized institutional development.
• The BMI Pool should be integrated with broader maritime initiatives such as Sagarmala, port-led development, and energy security planning.
• Transparent governance and efficient claims settlement mechanisms are necessary to build market confidence.
• Strategic partnerships with global reinsurers can improve technical capacity while retaining domestic control.
• Long-term success depends on making BMI not only a crisis-response mechanism but a permanent pillar of India’s maritime economic architecture.
Conclusion
• The Bharat Maritime Insurance Pool is more than an insurance reform—it is a strategic instrument of economic sovereignty.
• In an era where shipping routes are increasingly shaped by conflict and sanctions, control over insurance becomes as important as control over ports and ships.
• By creating a sovereign-backed maritime insurance framework, India is protecting both trade continuity and national strategic interests.
• The BMI Pool reflects the shift from dependence-based globalization toward resilience-based economic security.
Prelims MCQ
Q. With reference to the Bharat Maritime Insurance Pool (BMI Pool), consider the following statements:
- It aims to reduce India’s dependence on foreign maritime insurance providers.
- It covers only cargo insurance and excludes war-risk insurance.
- It is backed by a sovereign guarantee provided by the Government of India.
Which of the statements given above are correct?
(a) 1 and 3 only(b) 2 and 3 only(c) 1 and 2 only(d) 1, 2 and 3
Answer: (a)
Mains Question
Q. Discuss the significance of the Bharat Maritime Insurance Pool (BMI Pool) in strengthening India’s maritime trade security. How does it contribute to strategic economic sovereignty in an era of geopolitical uncertainty?
5.Pradhan Mantri Gram Sadak Yojana-III (PMGSY-III)
Source: PIB
Why in News?
• The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the continuation of Pradhan Mantri Gram Sadak Yojana-III (PMGSY-III) beyond March 2025 up to March 2028.
• The decision has been taken to complete pending rural road projects, strengthen agricultural connectivity, and improve access to schools, hospitals, and rural markets.
• The Cabinet has also approved additional Long Span Bridges and an increased financial outlay for unfinished works.
About PMGSY-III
• PMGSY-III is an important phase of the Pradhan Mantri Gram Sadak Yojana that focuses on consolidation and upgradation of existing Through Routes and Major Rural Links.
• Unlike earlier phases that concentrated mainly on providing first-time road connectivity to unconnected habitations, PMGSY-III aims to strengthen roads already built and improve their economic utility.
• Its main objective is to connect rural habitations with essential socio-economic centers such as Gramin Agricultural Markets (GrAMs), Higher Secondary Schools, and Hospitals.
• It seeks to improve rural mobility, reduce transportation costs, and enhance access to services and opportunities.
Background of PMGSY
• Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched on 25 December 2000 as a 100% Centrally Sponsored Scheme.
• PMGSY-I focused on providing all-weather road connectivity to eligible unconnected rural habitations.
• PMGSY-II emphasized upgradation of existing rural road networks to improve rural transport systems.
• PMGSY-III was launched in July 2019 with a stronger focus on economic connectivity and rural infrastructure consolidation.
• The scheme is implemented by the Ministry of Rural Development (MoRD).
Objectives of PMGSY-III
• To consolidate nearly 1,25,000 km of rural road routes across the country.
• To improve connectivity between villages and Gramin Agricultural Markets for better agricultural marketing.
• To strengthen access to higher secondary schools and healthcare institutions.
• To reduce travel time and transportation costs for both agricultural and non-farm products.
• To support rural economic growth and reduce regional development disparities.
Key Features of the Continuation Approval
• The completion timeline for roads and bridges in plain areas has been extended till March 2028.
• In hilly and difficult areas, road completion has been extended till March 2028, while bridge completion has been extended till March 2029 because of geographical constraints.
• The total financial outlay has been revised upward from ₹80,250 crore to ₹83,977 crore.
• Pending works sanctioned before March 31, 2025, but not yet awarded, are now allowed for tendering and execution.
• The Cabinet has approved 161 Long Span Bridges (LSBs) with an estimated cost of ₹961 crore.
• These bridges are necessary for the continuity and functionality of already sanctioned rural road alignments.
• The scheme promotes Green Roads by using waste plastic, cold mix technology, and other sustainable construction practices.
Significance of PMGSY-III
• Better road connectivity improves access to education, healthcare, and emergency services for rural populations.
• Improved access to Gramin Agricultural Markets helps farmers secure better prices and reduce post-harvest losses.
• Rural transport efficiency supports small businesses, self-employment, and non-farm rural livelihoods.
• Long Span Bridges improve year-round connectivity in flood-prone, tribal, and hilly regions where seasonal isolation is common.
• The scheme contributes directly to inclusive development and the vision of balanced regional growth.
• It also supports the broader goal of doubling farmers’ income by reducing logistics barriers.
Challenges
• Land acquisition issues and local disputes often delay project execution.
• Hilly terrain, floods, landslides, and difficult weather conditions slow down construction in remote areas.
• Rising construction costs and contractor shortages affect timely completion.
• Maintenance of completed rural roads remains a major challenge for long-term sustainability.
• Quality monitoring in remote areas requires stronger institutional capacity and regular inspection.
Way Forward
• Stronger coordination between states, local bodies, and implementing agencies is necessary for timely execution.
• Greater use of GIS mapping, digital monitoring, and geo-tagging can improve transparency and supervision.
• Dedicated funding for maintenance should be ensured so roads remain durable after construction.
• Climate-resilient infrastructure design should be prioritized in flood-prone and disaster-prone areas.
• Rural road planning should be integrated with agricultural value chains, warehousing, and digital service delivery.
Conclusion
• PMGSY-III marks the transition from basic connectivity to quality connectivity in rural India.
• Roads are not merely transport infrastructure—they are instruments of social justice, economic mobility, and human development.
• By strengthening rural links to markets, schools, and hospitals, PMGSY-III deepens the foundations of inclusive growth.
• Its continuation ensures that rural transformation is not interrupted and that development truly reaches the last mile.
Prelims MCQ
Q. With reference to Pradhan Mantri Gram Sadak Yojana-III (PMGSY-III), consider the following statements:
- It mainly focuses on providing first-time road connectivity to unconnected rural habitations.
- It aims to connect rural habitations with Gramin Agricultural Markets, Higher Secondary Schools, and Hospitals.
- It promotes the use of green road technologies such as waste plastic and cold mix technology.
Which of the statements given above are correct?
(a) 2 and 3 only(b) 1 and 2 only(c) 1 and 3 only(d) 1, 2 and 3
Answer: (a)
Mains Question
Q. Discuss the role of PMGSY-III in transforming rural connectivity from basic access to economic integration. How does rural road infrastructure contribute to inclusive development in India?
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