2nd July Current Affairs

VB-G RAM G Act, 2025: Centre Fixes ₹300 Daily Floor Wage
Civil Registration System (CRS) Report 2024
Delhi Electric Vehicle (EV) Policy, 2026
India’s Cotton Productivity: Beyond GM Seeds
PPP 2.0: Matching Capital to Risk for Infrastructure Financing

1.VB-G RAM G Act, 2025: Centre Fixes ₹300 Daily Floor Wage

Why in News?

The Central Government has notified a minimum floor wage of ₹300 per day under the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) [VB-G RAM G] Act, 2025, which has replaced the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005. The notification has revived the debate over the adequacy of rural wages amid inflation and rural distress.

Key Highlights

  • VB-G RAM G Act, 2025 has replaced MGNREGA, 2005.
  • ₹300/day has been fixed as the national floor wage.
  • 21 States/UTs, where MGNREGA wages were below ₹300, have revised their wages upward.
  • States already paying higher wages (e.g., Haryana ₹409, Goa ₹406, Kerala ₹401) continue to retain higher rates.
  • The notification has drawn criticism from opposition parties and labour groups, which argue that ₹300 is inadequate considering inflation and rising rural living costs.

Why has the Floor Wage been Revised?

The Government aims to:

  • Ensure a minimum wage guarantee across all States.
  • Reduce inter-state disparities in rural wage rates.
  • Strengthen livelihood security under the new rural employment guarantee framework.
  • Improve rural purchasing power and employment generation.

Concerns Raised

  • ₹300/day remains lower than the ₹375/day recommended by the Anoop Satpathy Expert Committee (2019).
  • Several stakeholders have demanded a national minimum wage of ₹400/day.
  • Rural wages have not kept pace with inflation, increasing the risk of declining real incomes.
  • A uniform national floor wage may not adequately reflect state-wise differences in cost of living.
  • Effective implementation will depend on adequate budgetary allocation and timely wage payments.

Significance

  • Provides a basic income safety net for rural households during periods of agricultural distress.
  • Supports rural consumption and local economic activity.
  • Helps reduce distress migration and creates productive community assets.
  • Contributes to inclusive rural development alongside other livelihood programmes.

Way Forward

  • Periodically revise wages by linking them to inflation and rural consumption indices.
  • Ensure timely wage payments and adequate budgetary support.
  • Strengthen convergence with agriculture, watershed development and rural infrastructure programmes.
  • Improve transparency through social audits and digital monitoring.
UPSC Prelims MCQQ. With reference to the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) [VB-G RAM G] Act, 2025, consider the following statements:It replaces the Mahatma Gandhi National Rural Employment Guarantee Act, 2005. The Centre has fixed a national floor wage of ₹300 per day under the Act. States are prohibited from notifying wages higher than the national floor wage. Which of the statements given above is/are correct?(a) 1 only(b) 1 and 2 only(c) 2 and 3 only(d) 1, 2 and 3Answer: (b)UPSC Mains Question (15 Marks)“Employment guarantee programmes are crucial instruments of rural livelihood security. Discuss the significance of the VB-G RAM G Act, 2025, and examine whether the revised floor wage is adequate to address the challenges of rural distress and inflation

2.Civil Registration System (CRS) Report 2024

Why in News?

The Civil Registration System (CRS) Report 2024, released by the Registrar General of India (RGI), shows that over 99% of births and deaths in India were registered during 2024, reflecting near-universal registration coverage. The report also highlights significant inter-state variations in the Sex Ratio at Birth (SRB).

Key Highlights

  • Over 99% of births and deaths were registered under the Civil Registration System (CRS).
  • Registered births increased from 2.52 crore (2023) to 2.54 crore (2024).
  • Registered deaths increased from 86.6 lakh to 89.4 lakh.
  • National Sex Ratio at Birth (SRB): 917 females per 1,000 male births.
  • Highest SRB:
    • Arunachal Pradesh – 1050
    • Andaman & Nicobar Islands – 984
    • Meghalaya – 974
    • Mizoram – 972
  • Lowest SRB:
    • Nagaland – 865
    • Lakshadweep – 865
    • Jharkhand – 890
  • 81,117 stillbirths were registered, nearly 69% occurring in urban areas.

Civil Registration System (CRS)

  • A nationwide system for compulsory registration of births and deaths under the Registration of Births and Deaths Act, 1969.
  • Administered by the Registrar General of India (RGI) under the Ministry of Home Affairs.
  • Generates vital statistics for governance, public health, demographic planning and welfare schemes.
  • Supports issuance of legal documents such as birth and death certificates.

Significance of the Report

Strengthening Governance

  • Near-universal registration improves the reliability of demographic and population statistics.
  • Facilitates evidence-based policymaking in health, education and social welfare.

Public Health Planning

  • Enables better estimation of fertility, mortality and disease burden.
  • Supports implementation of maternal and child health programmes.

Monitoring Gender Balance

  • Sex Ratio at Birth (SRB) serves as an important indicator of gender discrimination and sex-selective practices.
  • Persistent regional disparities indicate the need for stronger enforcement of gender equity measures.

Legal Identity

  • Birth registration ensures access to citizenship documentation, education, healthcare and social protection benefits.

Challenges

  • Considerable inter-state disparities in Sex Ratio at Birth persist.
  • Continued son preference and misuse of prenatal sex determination remain concerns in some regions.
  • Quality, timeliness and completeness of registration require continuous improvement.
  • Better reporting of stillbirths and cause-of-death data remains essential.

Way Forward

  • Achieve universal, timely and digital registration of vital events.
  • Strengthen implementation of the Pre-Conception and Pre-Natal Diagnostic Techniques (PCPNDT) Act, 1994.
  • Promote awareness regarding birth and death registration, especially in remote areas.
  • Integrate CRS data with health and digital governance platforms for real-time demographic monitoring.
UPSC Prelims MCQQ. With reference to the Civil Registration System (CRS) in India, consider the following statements:It is governed by the Registration of Births and Deaths Act, 1969.The Registrar General of India is responsible for administering the system.The Sex Ratio at Birth is calculated using data generated under the Civil Registration System.Which of the statements given above is/are correct?(a) 1 and 2 only(b) 2 and 3 only(c) 1 and 3 only(d) 1, 2 and 3Answer: (d)UPSC Mains Question (10 Marks)“Reliable civil registration systems form the foundation of evidence-based governance and inclusive development. Discuss the significance of the Civil Registration System (CRS) in India, with reference to demographic planning, public health and gender equity.”

3.Delhi Electric Vehicle (EV) Policy, 2026

Why in News?

The Delhi Government has notified the Delhi Electric Vehicle (EV) Policy, 2026, effective from 1 July 2026, introducing a phased roadmap to electrify transport by restricting registration of new petrol and diesel vehicles, beginning with two- and three-wheelers and gradually extending to four-wheelers.

Key Highlights

  • Policy effective from 1 July 2026 to 31 March 2030.
  • Targets at least 30% electrification of Delhi’s vehicle fleet by 2030.
  • From 1 January 2027: Registration of new non-electric three-wheelers to stop.
  • From 1 April 2028: Registration of new non-electric two-wheelers to stop.
  • Signals future Zero-Emission Vehicle (ZEV) mandate for four-wheelers.
  • Delhi becomes the first Indian State/UT to mandate phased discontinuation of new petrol and diesel two- and three-wheelers.

Major Provisions

Electrification Roadmap

  • Mandatory transition towards Battery Electric Vehicles (BEVs) through phased registration restrictions.
  • Gradual electrification of commercial fleets, school buses and future passenger cars.

Financial Incentives

  • Purchase incentives for electric 2-wheelers, 3-wheelers and electric trucks.
  • 100% exemption from road tax and registration charges for EVs (subject to specified limits).
  • Scrappage incentive of up to ₹1 lakh for replacing old Internal Combustion Engine (ICE) cars with EVs.

EV Infrastructure

  • Development of 30,000+ public charging stations.
  • Establishment of a Model Approval Committee for eligible EV models.
  • Three-year lock-in period to prevent misuse of subsidies.

Significance

  • Addresses vehicular pollution, which contributes significantly to Delhi’s air pollution.
  • Accelerates transition towards clean mobility and lower greenhouse gas emissions.
  • Promotes EV manufacturing, charging infrastructure and green jobs.
  • May serve as a model for similar EV policies across other States.

Challenges

  • Limited availability and affordability of electric vehicle models, particularly two-wheelers.
  • Heavy dependence on imported battery materials and supply chains.
  • Nearly 70% of India’s electricity is still generated from coal, reducing the immediate climate benefits of EV adoption.
  • Need for adequate charging infrastructure and grid readiness.
  • Concerns from industry regarding rapid transition timelines.

Way Forward

  • Expand domestic battery manufacturing under PLI and critical mineral initiatives.
  • Increase renewable energy share to maximise environmental benefits of EVs.
  • Strengthen charging infrastructure and battery recycling ecosystem.
  • Support R&D for affordable indigenous EV technologies.
  • Adopt a phased and predictable transition balancing environmental objectives with industry readiness.
UPSC Prelims MCQQ. With reference to the Delhi Electric Vehicle (EV) Policy, 2026, consider the following statements:It mandates that registration of new non-electric three-wheelers will cease from January 2027.It provides exemption from road tax and registration charges for Battery Electric Vehicles.The policy extends incentives to strong hybrid vehicles on par with Battery Electric Vehicles.Which of the statements given above is/are correct?(a) 1 only(b) 1 and 2 only(c) 2 and 3 only(d) 1, 2 and 3Answer: (b)UPSC Mains Question (15 Marks)“Electrification of the transport sector is central to India’s clean mobility transition. Discuss the significance of the Delhi Electric Vehicle Policy, 2026, and examine the challenges in achieving large-scale electric vehicle adoption in India.”

4.India’s Cotton Productivity: Beyond GM Seeds

Why in News?

An expert analysis argues that India’s declining cotton productivity cannot be reversed merely through approval of new Genetically Modified (GM) cotton seeds. It emphasizes that soil health, agronomic practices, varietal development, and regenerative agriculture are equally critical for improving cotton yields.

Cotton Productivity: Current Scenario

  • India’s cotton productivity peaked at 566 kg/ha (2013-14) but has declined to around 458 kg/ha.
  • Countries such as China and Turkey record much higher yields despite following different technological pathways.
  • Nearly 32% of India’s land is degraded, while about 25% faces desertification.
  • Soil Organic Carbon (SOC) in most cotton-growing regions remains only 0.3–0.6%, far below the desirable 1–1.5% needed for productive soils.

Why Productivity is Declining?

Soil Degradation

  • Declining soil organic carbon reduces nutrient availability, water retention and microbial activity.
  • Excessive dependence on chemical fertilizers and monocropping has weakened soil fertility.

Agronomic Constraints

  • Saturation of input use has resulted in diminishing returns.
  • Inadequate irrigation, poor nutrient management and pest resistance continue to affect yields.

Limited Genetic Improvement

  • Bt technology primarily protects against bollworm attack but does not directly enhance yield potential.
  • Greater emphasis is needed on developing high-yielding, climate-resilient cotton varieties.

Pest and Climate Challenges

  • Emergence of pink bollworm resistance and increasing climate variability adversely affect production.

Why GM Seeds Alone Are Not Enough?

  • GM traits mainly provide insect resistance and weed management, not higher productivity by themselves.
  • Countries like Turkey have achieved substantial yield improvements without commercial GM cotton through better agronomic practices and varietal improvement.
  • China’s higher productivity is supported by improved varieties, irrigation, nutrient management and scientific farming.

Way Forward

  • Restore soil organic carbon through regenerative agriculture, composting and biochar application.
  • Promote climate-resilient and high-yielding cotton varieties through conventional and modern breeding.
  • Improve irrigation efficiency, balanced fertilizer use and integrated pest management.
  • Encourage mechanization, precision agriculture and better extension services.
  • Focus on improving ginning outturn and input-use efficiency under the Cotton Technology Mission.
UPSC Prelims MCQQ. With reference to Bt Cotton in India, consider the following statements:Bt Cotton is genetically engineered to provide resistance against bollworms. Bt Cotton directly increases cotton yield irrespective of agronomic practices. Bt Cotton remains the only genetically modified crop approved for commercial cultivation in India. Which of the statements given above is/are correct?(a) 1 only(b) 1 and 3 only(c) 2 and 3 only(d) 1, 2 and 3Answer: (b)UPSC Mains Question (15 Marks)“Sustainable improvement in India’s cotton productivity requires a holistic approach beyond genetically modified seeds.” Discuss with suitable examples.

5.PPP 2.0: Matching Capital to Risk for Infrastructure Financing

Why in News?

An expert has proposed PPP 2.0, a new financing framework for India’s infrastructure sector that emphasizes matching capital to project risk through circular finance, enabling sustained investments for infrastructure expansion and the green transition.

Why is PPP 2.0 Needed?

  • India’s infrastructure pipeline exceeds 13,000 projects worth about ₹185 lakh crore.
  • India requires massive investments to achieve Viksit Bharat 2047 and Net Zero by 2070.
  • Traditional PPP 1.0 faced financing challenges due to mismatch between project duration and funding sources.

Challenges with PPP 1.0

  • Long-gestation infrastructure projects (30–50 years) financed through short-term bank loans (7–10 years).
  • Revenue uncertainty during initial years increased debt-servicing burden.
  • Led to stressed assets and rising Non-Performing Assets (NPAs) in the banking sector.
  • Limited participation of long-term institutional investors.

What is PPP 2.0?

PPP 2.0 proposes “matching capital to risk”, where different sources of finance support different stages of a project’s lifecycle.

  • Government and private developers finance high-risk stages such as project preparation and construction.
  • Once operational, mature assets are transferred to Infrastructure Investment Trusts (InvITs).
  • Infrastructure Debt Funds (IDFs) refinance costly bank loans with long-term debt.
  • Banks recycle capital into new infrastructure projects, creating a circular finance ecosystem.

Expected Benefits

  • Better allocation of financial risk across project stages.
  • Reduces stress on the banking system and lowers NPAs.
  • Improves availability of long-term infrastructure finance.
  • Attracts pension funds, insurance funds and sovereign wealth funds seeking stable long-term returns.
  • Supports green infrastructure, logistics, transport and energy transition.

Way Forward

  • Strengthen the InvIT and IDF ecosystem for capital recycling.
  • RBI should enable dynamic risk-based repricing of infrastructure loans after project stabilization.
  • Expand the role of institutions like National Investment and Infrastructure Fund (NIIF) in mobilizing global capital.
  • Develop a diversified long-term bond market to finance infrastructure sustainably.
UPSC Prelims MCQQ. With reference to Infrastructure Investment Trusts (InvITs), consider the following statements:They enable investors to invest in revenue-generating infrastructure assets. They facilitate capital recycling by allowing developers to monetize operational assets. They are regulated by the Reserve Bank of India. Which of the statements given above is/are correct?(a) 1 only(b) 1 and 2 only(c) 2 and 3 only(d) 1, 2 and 3Answer: (b)UPSC Mains Question (15 Marks)“India’s next generation of infrastructure financing requires moving from Public-Private Partnership (PPP) 1.0 to PPP 2.0 based on matching capital to project risk.” Discuss.

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