DAILY NEWS ANALYSIS

In a significant step toward expanding renewable energy and ensuring round-the-clock electricity supply, the Tripura government has identified 10 river sites for generating 185 MW of power using Hydrokinetic Turbine Technology. This initiative highlights India’s efforts to diversify clean energy sources while minimizing environmental impacts.

What is Hydrokinetic Turbine Technology?

Hydrokinetic turbine technology is an emerging form of hydropower generation that harnesses the kinetic energy of flowing water—such as rivers, canals, or tidal currents—to produce electricity.

Unlike conventional hydroelectric systems, which rely on the potential energy of stored water created through dams, barrages, or diversion structures, hydrokinetic turbines operate with practically zero water head and are installed directly within the natural flow of the river.

Working Principle of Hydrokinetic Turbines

Hydrokinetic turbines convert the energy of moving water currents into mechanical energy, which is then transformed into electrical energy. Since no large civil structures are required, the natural flow of water remains largely undisturbed, making the technology environmentally sustainable.

Key Features of Hydrokinetic Turbine Technology

• These turbines are placed directly in river channels rather than behind dams.

• They have a small physical footprint, reducing interference with river hydrology.

• Electricity generation depends solely on water velocity, not water storage or elevation difference.

• The technology is suitable for remote and river-rich regions where large dams are not feasible.

Benefits of Hydrokinetic Turbines

Renewable and Clean Energy Source

Hydrokinetic turbines provide a reliable renewable energy source by continuously harnessing flowing water. This helps reduce dependence on fossil fuels and lowers greenhouse gas emissions.

Minimal Environmental Impact

Since the turbines work with the natural flow of rivers, they preserve aquatic ecosystems, avoid large-scale displacement, and minimize changes to sediment flow and river morphology.

Scalability and Flexibility

The technology is highly adaptable and can be deployed in small local installations or expanded into large multi-turbine arrays, depending on energy requirements.

Cost-Effective Maintenance

Hydrokinetic turbines typically have fewer moving parts and are equipped with debris protection systems. This leads to lower maintenance costs and ensures dependable long-term performance.

Significance for India’s Energy Transition

Hydrokinetic turbine technology offers India an opportunity to tap into untapped riverine energy potential, particularly in states with abundant flowing water but limited scope for large hydropower projects. The Tripura initiative demonstrates how innovative renewable technologies can support sustainable development, energy security, and climate goals simultaneously.

The Pakistan Air Force (PAF) has recently conducted a successful flight test of the indigenously developed Taimoor Weapon System, marking a significant development in Pakistan’s air-launched strike capabilities.

About the Taimoor Missile

The Taimoor missile is an air-launched cruise missile developed by Pakistan. It is designed to deliver high-precision strikes against both land and sea-based targets, enhancing Pakistan’s stand-off attack capability.

Key Features of the Taimoor Missile

The missile uses subsonic turbojet propulsion, which provides greater fuel efficiency and enables long-range operations.

It has an operational range of up to 600 kilometres and is equipped with a conventional warhead.

The missile incorporates stealth features, including a box-shaped fuselage, X-type tail configuration, and foldable wings, which help reduce radar detection.

The Taimoor missile is capable of flying at very low altitudes, allowing it to evade enemy radar systems and air and missile defence networks.

For guidance and navigation, the missile relies on a combination of inertial navigation systems, satellite-based navigation, and terrain-referenced guidance, ensuring high accuracy throughout its flight.

What is a Cruise Missile?

A cruise missile is an unmanned, self-propelled weapon system that operates much like an aircraft. It is powered by jet engines and remains within the Earth’s atmosphere for the entire duration of its flight.

Cruise missiles can be launched from multiple platforms, including land-based launchers, aircraft, naval ships, and submarines.

They are capable of flying at very low altitudes, sometimes just a few metres above the surface, which makes them difficult to detect by radar despite higher fuel consumption.

Types and Propulsion of Cruise Missiles

Most cruise missiles are subsonic and use turbofan or turbojet engines. However, advanced variants include supersonic and hypersonic cruise missiles, which use ramjet and scramjet engines for much higher speeds.

Guidance Systems in Cruise Missiles

Cruise missiles are self-guided and employ a combination of technologies such as terrain contour matching, Global Positioning Systems (GPS), and inertial navigation systems using gyroscopes and motion sensors. These systems allow the missile to follow a pre-programmed flight path with high precision.

Ladakh’s double-humped Bactrian camels are set to make their debut at the 77th Republic Day Parade, highlighting the cultural and ecological significance of this rare species native to India’s high-altitude cold deserts.

About the Double-Humped Bactrian Camel

The double-humped Bactrian camel is scientifically known as Camelus bactrianus.
These large, even-toed ungulates are often referred to as Ladakh’s “silent warriors” due to their historical role in transport and survival in extreme terrain.

Distribution and Habitat

Bactrian camels are native to the harsh, arid regions of Central Asia.
Their natural range extends from Afghanistan to China, with significant populations found in the Mongolian steppes and the Gobi Desert.

In India, small and isolated populations are found in the high-altitude cold desert of Nubra Valley in Ladakh, where they are adapted to extreme climatic conditions.

Key Characteristics of the Double-Humped Bactrian Camel

The two humps of the Bactrian camel store fat reserves, which can be metabolised into energy and water during prolonged periods of food scarcity.

They possess a thick, shaggy coat that changes seasonally, becoming denser in winter to withstand temperatures as low as –40°C.

Their sealable nostrils protect them from icy winds and frozen dust, while their broad, padded feet function like natural snowshoes, enabling movement across snow and sand.

Bactrian camels are among the few terrestrial animals capable of eating snow to meet their hydration requirements when liquid water is unavailable.

Diet

Bactrian camels are omnivorous, but they are primarily herbivores, feeding on a wide variety of grasses, shrubs, and desert vegetation.

Conservation Status

According to the IUCN Red List, the double-humped Bactrian camel (Camelus bactrianus) is classified as Critically Endangered, making its conservation a priority in fragile cold desert ecosystems.

The Design Linked Incentive (DLI) Scheme is a critical initiative aimed at anchoring India in the most strategic and value-intensive segment of the global semiconductor value chain—chip design.
The scheme focuses on building India’s fabless semiconductor ecosystem, which emphasises design and intellectual property rather than manufacturing alone.

About the Design Linked Incentive (DLI) Scheme

The Design Linked Incentive Scheme is a key policy instrument to advance India’s ambition of developing a strong domestic semiconductor design capability.
It is implemented by the Ministry of Electronics and Information Technology (MeitY) under the broader Semicon India Programme.

Objective

The primary objectives of the scheme are to:

• Reduce India’s import dependence in semiconductors,

• Strengthen supply-chain resilience, and

• Enhance domestic value addition in high-technology electronics.

Eligibility under the DLI Scheme

• Start-ups and Micro, Small and Medium Enterprises (MSMEs) are eligible for both financial incentives and design infrastructure support for semiconductor product design and deployment.

• Other domestic companies are eligible for financial incentives for the deployment of semiconductor designs.

Scope of Support under the DLI Scheme

The DLI Scheme supports semiconductor design across the entire product lifecycle, from design and development to deployment.
It covers a wide range of products, including:

• Integrated Circuits (ICs),

• Chipsets,

• Systems-on-Chip (SoCs),

• Systems, and

• Intellectual Property (IP) cores.

Nodal Agency

The Centre for Development of Advanced Computing (C-DAC) acts as the nodal agency for the implementation of the DLI Scheme.

Financial Incentives and Design Infrastructure Support

1. Product Design Linked Incentive

Under this component, eligible entities receive reimbursement of up to 50% of eligible expenditure incurred on semiconductor design.
The reimbursement is capped at ?15 crore per application.

This incentive applies to semiconductor designs related to:

• Integrated Circuits (ICs),

• Chipsets,

• Systems-on-Chips (SoCs),

• Systems and IP cores, and

• Other semiconductor-linked designs.

2. Deployment Linked Incentive

The scheme provides turnover-based incentives ranging from 6% to 4% of net sales for a period of five years.
The total incentive under this component is capped at ?30 crore per application.

The minimum cumulative net sales requirement over Years 1–5 is:

• ?1 crore for start-ups and MSMEs, and

• ?5 crore for other domestic companies.

Significance of the DLI Scheme

By focusing on chip design and intellectual property creation, the DLI Scheme positions India in the highest value segment of the semiconductor ecosystem.
It supports innovation-driven start-ups, enhances technological self-reliance, and complements manufacturing-oriented initiatives under Semicon India, contributing to India’s long-term strategic and economic security.

A recent scientific study has revealed that a DNA sequence which normally acts as a stop signal for protein synthesis in almost all organisms behaves differently in some archaea. Instead of stopping protein production, this sequence codes for a rare amino acid in certain archaeal species.
This discovery is significant because it challenges the concept of a universal genetic code and highlights the unique molecular biology of archaea, further distinguishing them from bacteria and eukaryotes.

About Archaea

Archaea are a group of microorganisms whose name is derived from the Greek word meaning “ancient things.” They are considered one of the oldest forms of life on Earth and constitute the third domain of life, alongside Bacteria and Eukarya.

Habitat of Archaea

Archaea are known for their ability to survive in extreme environmental conditions. They are commonly found in hot springs, cold deserts, hypersaline lakes, acidic environments, and deep-sea regions.
Although many archaea are extremophiles, not all archaea live in extreme habitats.

Characteristics of Archaea

Archaea are single-celled, prokaryotic organisms that lack a nucleus and membrane-bound organelles.
They are similar to bacteria in size and shape but are biochemically and genetically distinct.

• Their cell membrane contains unique ether-linked lipids, unlike the ester-linked lipids of bacteria and eukaryotes.

• Most archaea possess a cell wall, but it does not contain peptidoglycan, which is a key component of bacterial cell walls.

• Archaea are generally slow-growing organisms.

Archaea and Human Health

Certain species of archaea are found in the human gut microbiome. Ongoing research suggests that they may play a role in human digestion, metabolism, and overall gut health, though their exact functions are still being explored.

Applications of Archaea

Archaea are known to produce antimicrobial compounds and exhibit strong antioxidant activity.
Due to their ability to survive in extreme conditions, they are widely used in biotechnology and eco-friendly wastewater treatment processes.

Challenges in Culturing Archaea

Archaea are extremely difficult to culture in laboratory conditions. This is because they require very specific environmental conditions, such as precise temperature, pressure, salinity, and pH levels, which are hard to replicate artificially.

Scientific Importance of Archaea

Archaea play a crucial role in helping scientists understand:

• The origin and evolution of life on Earth

• Mechanisms of survival in extreme environments

• The possibility of life existing beyond Earth

The Lok Sabha has passed the Sabka Bima, Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, which proposes to raise the Foreign Direct Investment (FDI) limit in the insurance sector from 74% to 100%.
The reform is positioned as a key step towards deepening insurance coverage and achieving the vision of “Insurance for All by 2047.”

Overview of the Bill

The Bill enables 100% foreign ownership in insurance companies, strengthens the regulatory authority of the Insurance Regulatory and Development Authority of India (IRDAI), liberalises the reinsurance sector, and aims to accelerate insurance penetration across India.
While it promises to attract global capital, technology, and innovation, concerns persist regarding foreign dominance, rural exclusion, and safeguarding policyholder interests.

Key Provisions of the Sabka Bima, Sabki Raksha Bill, 2025

1. 100% FDI in Insurance

The Bill raises the foreign direct investment limit in insurance companies from 74% to 100%, allowing full foreign ownership.
This is intended to attract long-term capital, advanced technologies, and global best practices into India’s insurance ecosystem.

2. Amendments to Insurance Laws

The Bill amends multiple legislations, including the Insurance Act, 1938, LIC Act, 1956, and IRDA Act, 1999, to modernise the regulatory framework and align it with current sectoral requirements.

3. Liberalisation of Reinsurance

The Net Owned Fund (NOF) requirement for Foreign Reinsurance Branches is reduced from ?5,000 crore to ?1,000 crore.
This move aims to deepen the reinsurance market and position India as a regional reinsurance hub.

4. Policyholders’ Education and Protection Fund

A dedicated Policyholders’ Education and Protection Fund will be established to promote insurance awareness and safeguard consumer interests.
The Bill mandates that policyholder data be collected and protected in accordance with the Digital Personal Data Protection (DPDP) Act, 2023.

5. Enhanced Powers of IRDAI

The Bill significantly strengthens IRDAI’s enforcement powers, enabling it to investigate violations, curb illegal commissions and rebates, and ensure strict compliance by insurers and intermediaries.
The IRDAI Chairperson is empowered to order searches, inspections, and seizures where records are concealed or tampered with.
IRDAI may also deploy officers to scrutinise returns, disclosures, and statements submitted by insurers, improving regulatory oversight.

6. Greater Autonomy for LIC

The Life Insurance Corporation of India (LIC) is granted greater operational autonomy, including the freedom to open new zonal offices without prior government approval, facilitating faster expansion and improved regional management.

7. Simplified Compliance Regime

The Bill simplifies procedural and compliance requirements to improve ease of doing business, while retaining safeguards for consumer protection.

Limitations and Concerns

Critics argue that allowing 100% foreign ownership could place citizens’ long-term savings under foreign control, raising concerns over national financial sovereignty.
There are fears that foreign insurers may prioritise urban and high-profit markets, neglecting rural and social sector obligations.
A trust deficit also exists, as insurance relies heavily on public confidence in state-backed institutions.
The reform is seen as a shift in the state’s role from direct social risk protection toward a model of shared responsibility.

Government Initiatives to Promote Insurance Penetration

• Pradhan Mantri Jan Arogya Yojana (PM-JAY): Provides health insurance cover of ?5 lakh per family per year for secondary and tertiary care to vulnerable households.

• Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): A life insurance scheme covering death due to any cause for individuals aged 18–50 years.

• Pradhan Mantri Suraksha Bima Yojana (PMSBY): Offers accident insurance coverage for death or disability due to accidents.

• JAM Trinity (Jan Dhan–Aadhaar–Mobile): Facilitates easy enrolment, premium payments, and direct benefit transfers, expanding insurance access.

Current Status of the Indian Insurance Sector

Market Size and Global Standing

India is currently the 10th largest insurance market globally and the 2nd largest among emerging markets, with a global market share of about 1.9%.
According to Swiss Re, India is projected to become the 6th largest insurance market by 2032.

Penetration and Density

Insurance penetration increased from 3.4% in FY16 to 4.0% in FY23.
General insurance density rose from USD 9 in 2019 to USD 25 in FY23.
The number of insurers increased from 53 in 2014–15 to 74 in 2024–25, while total premiums nearly tripled during this period.

Life and Non-Life Insurance Segments

India is the 5th largest life insurance market globally, growing at 32–34% annually.
LIC remains the dominant player with around 60% market share, though private insurers are expanding.
In non-life insurance, India ranks 4th in Asia and 14th globally.

Key Challenges in the Insurance Sector

India continues to face low general insurance penetration, particularly in rural areas and among informal workers, MSMEs, and gig workers.
Insurance products are often complex and poorly aligned with the needs of low-income households and emerging risks such as climate change, cyber threats, and pandemics.
Mis-selling, delayed claim settlements, and opaque policy terms have weakened public trust.
Limited awareness leads many people to view insurance as an expense rather than a risk-management tool.

Measures Needed to Strengthen India’s Insurance Sector

Technology should be leveraged through RegTech and SupTech tools, AI-based underwriting, fraud detection, and integration with India Stack for faster onboarding and claim settlement.
Product innovation must focus on climate risks, cyber security, health pandemics, and on-demand insurance models.
Insurance penetration should be deepened through micro-insurance, parametric insurance, and last-mile delivery via Self-Help Groups, PACS, CSCs, and post offices.
Strong regulatory oversight is essential to balance investor interests with policyholder protection.

Conclusion

Allowing 100% FDI in the insurance sector represents a bold and mature reform in India’s financial landscape.
While it addresses capital and expertise constraints, its long-term success will depend on robust regulation, inclusive growth, and the effective protection of Indian policyholders under the vision of “Insurance for All by 2047.”

Recent debates among economists, policymakers, and global institutions have highlighted concerns that India’s current GDP measurement framework does not fully capture the realities of a rapidly changing economy.
The Indian economy has increasingly become digital, informal, service-oriented, and platform-driven, while GDP estimation still relies on older assumptions and data structures.

In response, India will implement a new base-year revision of the GDP series in 2026, with Financial Year 2022–23 as the new base year.

What is GDP and How is it Calculated?

Gross Domestic Product (GDP) measures the total monetary value of all final goods and services produced within a country during a given period.

Methods of GDP Calculation in India

India uses three standard approaches:

1. Production (Value Added) Method

2. Income Method

3. Expenditure Method

Among these, India primarily relies on the Production (Value Added) Method, which uses corporate and administrative databases to estimate economic output.

The responsibility for GDP data compilation lies with the Central Statistics Office (CSO) under the Ministry of Statistics and Programme Implementation (MoSPI).

Sectoral Contribution to India’s GDP

• The services sector is the largest contributor, accounting for about 61.5% of GDP.

• The industrial sector contributes approximately 23%.

• The agriculture sector contributes around 15.4% of GDP.

This sectoral composition highlights the growing dominance of services in India’s economy.

What is a Base Year?

A base year is a benchmark year used for comparison in economic and statistical calculations. It serves as a reference point against which current values of indicators such as GDP, Consumer Price Index (CPI), and Index of Industrial Production (IIP) are measured.

Significance of a Base Year

• It helps remove the effect of inflation and measure real economic growth.

• It enables the construction of index numbers (e.g., CPI = 100 in the base year).

• It ensures that economic data reflects the current structure of the economy, including prices, production patterns, and consumption behaviour.

Why India’s GDP Measurement Needs a Reset

1. Outdated Base Year (2011–12)

India’s GDP series still uses 2011–12 as the base year, despite significant structural changes such as digitisation, rise of services, and the gig economy.
International best practices recommend revising the base year every five years to avoid distortions.

2. Poor Capture of the Informal Sector

Nearly half of India’s workforce operates in the informal sector, but GDP estimation relies heavily on old surveys and proxy assumptions, leading to inaccurate measurement—especially after GST implementation and COVID-19 disruptions.

3. Over-Reliance on MCA-21 Database

GDP estimates depend significantly on corporate filings (MCA-21), which:

• Exclude micro and informal enterprises

• Include inactive or shell companies, thereby affecting data quality

4. Weak Measurement of the Services Sector

Although services contribute around 55–60% of GDP, areas such as health, education, care work, digital platforms, intangibles, and quality improvements remain inadequately measured.

5. Employment–Growth Disconnect

High GDP growth has not translated into proportional job creation, suggesting that GDP figures may not reflect inclusive or employment-intensive growth.

6. Post-COVID Structural Changes Ignored

The closure of small firms and the expansion of gig and platform-based work are not fully captured, as existing methodologies still assume a pre-pandemic economic structure.

7. Limited Use of Alternative Data Sources

Unlike global best practices that use satellite imagery, electricity consumption, and digital transaction data, India’s GDP estimation remains survey-heavy and time-lagged.

2026 Base-Year Revision: A Major Opportunity

1. Shift Away from the Commodity-Flow Approach

The revised framework will move away from the commodity-flow method used to estimate consumption.
Earlier, fixed ratios based on a 2011–12 study were used to allocate commodities between intermediate consumption, final consumption, and other uses.

The new system will use dynamic rates and ratios, allowing estimates to evolve with changing consumption patterns.

2. Elimination of ‘Discrepancies’ in GDP Estimates

MoSPI plans to integrate Supply and Use Tables (SUTs) directly into annual GDP compilation.

• Supply and Use Tables show how goods and services are supplied by domestic industries and imports and how they are distributed among intermediate use, final consumption, and exports.

• This approach aims to reduce discrepancies in early estimates and eliminate them entirely in final estimates.

3. Greater Use of Digital and Administrative Data

The revised GDP series will increasingly rely on high-frequency administrative datasets, such as:

• e-Vahan (vehicle registrations)

• GST data and other administrative records

This will improve timeliness, accuracy, and coverage.

4. Updated Surveys as the Data Backbone

Key surveys supporting the new GDP series include:

• Household Consumption Expenditure Survey (HCES) 2022–23 and 2023–24

• Updated surveys of formal and informal enterprises

These surveys are expected to provide more granular and realistic insights into consumption behaviour and production activity than earlier benchmarks.

Conclusion

GDP remains a vital macroeconomic indicator, but without regular methodological updates, it risks misrepresenting India’s structural transformation.
The 2026 base-year revision is essential to make GDP a more accurate, reliable, and policy-relevant tool, supporting evidence-based policymaking, inclusive growth, and sustainable development.