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Growth in India's Livestock Sector

Published on: 11-Aug-2026

Source: PIB

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Growth in India's Livestock Sector

Article Summary

Summary of Key Developments in India's Livestock Sector

  1. Growth in Livestock Sector:

    • Significant growth in India's livestock sector highlighted by Union Minister Rajiv Ranjan Singh.
    • The number of beneficiaries of the Kisan Credit Card (KCC) scheme increased to 50.42 lakh in FY 2025-26, up from 15.08 lakh in FY 2021-22.
  2. Dairy Production:

    • Annual milk production reached 247.87 million tons in FY 2024-25, exceeding domestic demand of 243 million tons.
    • Total dairy exports in FY 2025-26 amounted to $407.18 million.
  3. Government Schemes:

    • National Gokul Mission (RGM): Launched in December 2014 to support the development and conservation of indigenous breeds, enhance genetic improvement of livestock, and increase milk productivity.
    • National Livestock Mission (NLM): Implemented since FY 2014-15, aimed at promoting scientific breeding, improving fodder quality, and increasing productivity of meat, goat milk, eggs, and wool. It focuses on creating entrepreneurs and establishing linkages in the unorganized sector.
  4. Financial Assistance Programs:

    • Under the NLM-EDP, 50% capital subsidy is provided to individuals, farmer producer organizations (FPOs), self-help groups (SHGs), joint liability groups (JLGs), and farmer cooperative organizations (FCOs).
    • The Livestock Health and Disease Control Program (LHDCP) provides 100% financial assistance for vaccination against economically significant livestock diseases such as Foot and Mouth Disease (FMD), Brucellosis, Peste des Petits Ruminants (PPR), and Classical Swine Fever (CSF).
  5. Veterinary Services:

    • Strengthening of veterinary health services through 245 mobile veterinary units (MVUs) in Tamil Nadu, supported by shared financial assistance.
  6. Disease Control Initiatives:

    • Financial assistance for vaccination against emerging and foreign diseases, laboratory strengthening, disease surveillance, training, and awareness activities provided to states and union territories.
  7. Economic Indicators:

    • The livestock sector contributes significantly to rural employment and income, with a focus on increasing per-animal productivity and supporting entrepreneurship in the livestock sector.

These initiatives reflect the government's commitment to enhancing the productivity and health of livestock in India, aiming for sustainable growth and improved livelihoods for farmers in the sector.

Key Terms & Concepts

Kisan Credit Card (KCC)Loan scheme for farmers
50.42 lakhBeneficiaries of KCC
247.87 million tonsAnnual milk production
407.18 million dollarsTotal dairy exports
National Gokul Mission (RGM)Promotes scientific breeding
National Livestock Mission (NLM)Enhances livestock productivity
50% capital subsidySupport for livestock development
FMD and BrucellosisEconomic livestock diseases
245 mobile veterinary unitsVeterinary services for farmers
December 2014Start of RGM implementation
2014-15Start of NLM implementation

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Innovations in Rural Technology Ecosystem
Economic and Social Development26-Sep-2026

Innovations in Rural Technology Ecosystem

Summary of Key Points

Profiles and Contributions

  • Nagaraja Prakasam: Angel investor, fund advisor, and mentor with a focus on social enterprises, particularly in rural technology and appropriate technology.
  • Mentoring Initiatives: First resident mentor at NSRCEL, IIM-Bangalore; involved with IIT-Madras Rural Technology Business Incubator and IIM-Ahmedabad’s Centre for Innovation.

Government and Policy Engagement

  • NITI Aayog, NABARD, Ministry of Rural Development: Contributed to policy design and rural innovation.
  • Kisan Mitr Platform: Established during the pandemic to curate and disseminate technologies for rural entrepreneurs. Aimed to empower communities and facilitate a reverse brain drain.

Technological Innovations in Rural Development

  • Rural Smart Village Centers (RSVC): NABARD is coordinating the establishment of 200 centres across India to provide access to technologies and foster entrepreneurship.
  • Technology Focus: Emphasis on appropriate technologies pertinent to local contexts, diverging from typical IT sector applications.
    • Example: Ecosan Technologies for waste management and sanitation solutions.

Startups and Innovations

  • Examples of Successful Startups:
    • GoCoop: Marketplace for rural handloom weavers connecting them to global buyers; leverages carbon credits for sustainability.
    • Kosha.ai: Uses QR codes for traceability in textile markets, enhancing transparency in supply chains.
  • IIT Initiatives: RUTAG (Rural Technology Action Group) focuses on village problem-solving and technology implementation.

Judicial and Development Milestones

  • ICAR: Various agricultural technologies curated via Kisan Mitr helped address practical rural needs.

Challenges and Observations

  • Inappropriate Technology Transplants: Introduction of foreign technologies without local adaptation can lead to failures (e.g., biogas systems).
  • Local Conditions Consideration: Emphasis on technologies being relevant to Indian climatic and socio-economic situations is critical.
  • Educational Initiatives: Courses that encourage students to engage with rural communities to identify and solve real problems.

Future Directions

  • Focus on Diverse Opportunities: A shift in traditional rural entrepreneurial activities (beyond food products) towards technology-enabled enterprises, ensuring greater economic resilience and innovation.
  • Integration and Ecosystem Development: Strengthening connections between entrepreneurs, technology, and institutions to enhance rural capacities.

Economic Indicators and Impact

  • Enterprises Growth: Creating scalable models that incorporate local solutions to solve national challenges, potentially transforming rural economies.

This summary encapsulates significant contributions in the field of rural development through technology and entrepreneurship and emphasizes the need for contextually relevant innovations.

Crude Oil Prices Affect Indian OMCs
Economic and Social Development24-Sep-2026

Crude Oil Prices Affect Indian OMCs

  1. Current Situation:

    • The public sector oil marketing companies (OMCs) in India—Indian Oil, Bharat Petroleum, and Hindustan Petroleum—are suffering losses due to a surge in global crude oil prices influenced by geopolitical tensions in West Asia.
    • Estimated losses per litre: Rs 9 on diesel, Rs 8 on petrol, and Rs 300 per cylinder on domestic LPG.
    • Daily losses for OMCs approximately amount to Rs 530 crore.
  2. Economic Projections:

    • If crude oil prices stay above $105 per barrel, projected under-recoveries for petrol and diesel may exceed Rs 64,000 crore for FY 2026-27.
    • Combined under-recoveries for LPG could surpass Rs 1 lakh crore this financial year if current trends persist.
  3. Crude Oil Price Data:

    • Indian crude basket climbed to $117.4 per barrel as of September 21, 2026, compared to an average of $66 in the previous fiscal year.
    • Price hikes for petrol and diesel last occurred in May 2026, with a total increase of Rs 7.35 per litre for petrol and Rs 7.53 per litre for diesel.
  4. Financial Health of OMCs:

    • The three major OMCs control around 90% of India's petrol and diesel retail market and are the sole entities supplying LPG.
    • In the April-June quarter of 2026, OMCs reported a net loss of over Rs 18,000 crore.
    • Marketing losses are expanding again due to high international prices.
  5. Policy and Government Response:

    • The Indian government generally avoids compensating OMCs for losses from petrol and diesel, which are deregulated.
    • For regulated LPG pricing, the government has provided financial grants to mitigate losses in recent years.
    • The cumulative negative buffer for LPG reached Rs 61,940 crore as of June 30, 2026, with under-recoveries of Rs 500 and Rs 300 per cylinder reported for the June quarter and September 2026, respectively.
  6. Operational Insights:

    • OMCs break even when crude prices range between $85-$90 per barrel; prices above this level without corresponding fuel price hikes lead to significant operational losses.
    • Despite high gross refining margins (GRMs), the benefits do not entirely offset marketing and operational losses.
    • GRMs were noted to be above $10 per barrel since the escalation of the West Asia crisis.
  7. Future Projections Based on Oil Prices:

    • If Brent crude prices average between $105-$115 per barrel, OMCs could incur under-recoveries of around Rs 64,000 crore.
    • A price hike of Rs 4-6 per litre is estimated to neutralise marketing losses at these price levels.
    • Under certain price scenarios (e.g., Brent prices averaging $130-$140), under-recoveries might escalate to approximately Rs 1.9 lakh crore.
  8. Conclusion:

    • The financial health of OMCs is critically linked to international crude oil prices, the government's approach to regulating fuel prices, and the overall economic conditions driven by geopolitical crises in oil-producing regions. Continuous monitoring and potential policy adjustments may be necessary to safeguard the viability of OMCs amidst fluctuating market conditions.
India's Inflation and Monetary Policy Update
Economic and Social Development21-Sep-2026

India's Inflation and Monetary Policy Update

Monetary Policy Context in India

Key Economic Indicators:

  • Repo Rate: Currently held at 5.25% by the Reserve Bank of India (RBI).
  • Inflation Rates:
    • Consumer Price Inflation: 4.82% (August 2023), up from 4.45% (July).
    • Food Inflation: Higher at 5.95%.
    • Core Inflation: Approximately 4.2%.

Monetary Policy Dynamics:

  • The real interest rate may approach zero if inflation expectations rise. This scenario indicates a shift from a positive real interest rate environment.
  • RBI projects inflation for FY2026-27 at around 5%, but current rates exceed this projection.

External Factors Affecting Inflation:

  • Oil Prices: Brent crude oil has surpassed $100 a barrel, approaching $110, influenced by geopolitical tensions in West Asia affecting shipping routes.
  • The combination of rising oil prices, a weaker rupee, and elevated global commodity prices adds to inflationary pressures.

Banking Sector Analysis:

  • Bank Credit Growth: Strong at 19.1% as of August 2023.
  • Deposit Growth: Increased to 17.8%, the fastest rate in a decade, partly due to the RBI's special FCNR(B) scheme.
  • Credit-Deposit Ratio: Approximately 80.3% at the end of August.

Impact of Inflation on Savings:

  • Rising inflation reduces the real return on conventional bank deposits, encouraging households to explore alternatives such as mutual funds, equities, and gold.
  • There is a historical correlation between gold imports and inflation expectations (correlation coefficient of 0.83 between 2010-2013).

Judicial and Institutional Considerations:

  • The RBI's decision-making reflects a tension between the need to manage inflation and the implications of a steadily growing economy and bank credit.
  • The timing of monetary policy adjustments is crucial; a timely 25-basis-point increase may be preferable to a later 50-basis-point response in managing inflation expectations.

Conclusion:

India is navigating a nuanced economic landscape where inflationary pressures are juxtaposed with robust growth and credit demand. The RBI may need to reassess its monetary policy strategies promptly to avoid a zero real interest rate environment which could further complicate inflation control.

India-New Zealand FTA Implementation Date
Economic and Social Development21-Sep-2026

India-New Zealand FTA Implementation Date

India-New Zealand Free Trade Agreement (FTA) Summary

Implementation Date:

  • The India-New Zealand FTA will come into effect on October 20, 2026.

Key Figures:

  • India and New Zealand aim to double bilateral trade in goods and services to NZD 7 billion (approximately ₹35,000 crores) by 2030.
  • In 2025-26, bilateral trade reached approximately USD 1.1 billion.

Bilateral Trade Benefits:

  • New Zealand will receive zero tariffs on 100% of India's exports from day one.
  • Key sectors benefiting from tariff-free access include textiles, leather, footwear, engineering goods, and processed agricultural products.
  • Indian industries will gain competitive advantages through duty-free access to essential inputs like wooden logs, coking coal, and metal scrap.

Government Schemes and Policies:

  • The FTA is part of the "Strategic Partnership: Roadmap to 2030," enhancing trade relations and economic cooperation.
  • The agreement includes provisions for protecting sensitive Indian agricultural products (e.g., dairy, meat, sugar, edible oils) from tariff concessions.
  • A joint Agricultural Productivity Council will monitor and enhance agricultural productivity and cooperation.
  • Judicial and Legislative Aspects:

    • New Zealand's parliament passed the relevant laws on September 16, 2026, to facilitate the agreement.

    Employment and Migration:

    • The agreement includes special provisions for 5,000 temporary employment visas for skilled Indians and 1,000 work-holiday visas annually for young Indians.
    • Unlimited movement is allowed for students, with post-study work rights for graduates (3 years) and PhD holders (4 years).

    Science and Technology Collaboration:

    • The FTA will enhance cooperation in sectors like IT, professional services, audiovisual, construction, and tourism, covering about 118 sectors.
    • Indian pharmaceutical and medical device exporters will benefit from New Zealand's acceptance of global regulatory approvals, expediting market access.

    Economic Implications:

    • The agreement is expected to stimulate job creation, investment, and trade, benefiting women, youth, farmers, and MSMEs.
    • It aligns with India's vision of "Developed India @2047" and reflects growing partnerships with developed economies.

    Cultural and Social Engagement:

    • The FTA is designed to strengthen ties in various fields, including culture, sports, and business, aiming to create a robust foundation for cooperation.

    Additional Resources:

    • Detailed fact sheet and FAQs can be accessed through the Ministry of Commerce's official links.

    This FTA marks a significant step in enhancing economic cooperation and trade relations between India and New Zealand, contributing to broader economic objectives and mutual prosperity.