UPSC Mains Current Affairs for 29 October 2025

NITI Aayog Highlights Rising Role of India’s Service Sector

October 29, 2025

Service Sector Latest News

India’s services sector is in the news after NITI Aayog released two comprehensive reports highlighting that the sector now contributes 55% to India’s GVA and nearly 30% to total employment.

India’s Service Sector: Driving Jobs and Growth in a Transforming Economy

India’s service sector has emerged as the core pillar of its economic transformation, shaping the country’s journey from an agrarian economy to a knowledge and innovation-driven one.
Encompassing a wide range of industries, including information technology, financial services, communications, education, healthcare, transport, tourism, and retail, the sector not only drives GDP but also represents India’s global competitiveness.
The sector’s contribution to India’s Gross Value Added (GVA) has steadily risen over the years, while its employment potential has expanded across both traditional and modern sub-sectors.
India is today the 7th largest exporter of services in the world, with a share of over 4% in global services exports.

Key Highlights and Insights from the NITI Aayog Reports

Employment Growth and Rising Share in Workforce
- According to the latest twin reports released by NITI Aayog, “India’s Services Sector: Insights from Employment Trends and State-Level Dynamics” and “India’s Services Sector: Insights from GVA Trends and State-Level Dynamics”, between 2017-18 and 2023-24, India’s service sector added nearly 40 million new jobs, raising its employment share from 26.9% in 2011-12 to 29.7% in 2023–24.
- This means almost one in three Indian workers is now engaged in the services economy.
- The report also notes an improvement in employment elasticity, which rose from 0.35 pre-pandemic to 0.63 post-pandemic, indicating that job creation is increasingly responding to output growth.
- The sector’s ability to absorb labour displaced from agriculture and low-productivity industry makes it a crucial driver of inclusive growth.
Contribution to GDP and Economic Stability
- The services sector’s contribution to India’s Gross Value Added (GVA) increased from 49% in 2011-12 to 55% in 2023-24, outpacing the secondary and primary sectors.
- It also recorded a Compound Annual Growth Rate (CAGR) of about 7%, showing consistent resilience even during economic downturns.
- Sub-sectors such as Information Technology (IT), financial and professional services, communication, and logistics have been the key growth engines.
- For instance, Computer and Information Services GVA increased nearly fourfold, from Rs. 2.4 trillion in 2011–12 to Rs. 10.8 trillion in 2023–24, highlighting India’s digital dominance and the rapid expansion of knowledge-based services.
Traditional vs Modern Services
- While traditional services such as trade, repair, and transport continue to employ a large section of the population, modern services like IT, finance, R&D, and consulting have seen faster growth and higher productivity levels.
- The Professional, Scientific, and Business Services segment alone contributes about 20% of total services output, underlining the importance of high-skilled and innovation-driven activities.
- Conversely, postal, courier, and insurance services remain underperforming and require modernisation and digital transformation.
Regional Trends and State-Level Dynamics
- The NITI Aayog’s state-level analysis reveals significant disparities in the development and composition of the services sector across India.
- Leaders: Karnataka, Maharashtra, Telangana, Tamil Nadu, Delhi, and Kerala dominate the modern service economy, driven by IT, finance, and professional consulting. Together, they account for 40% of total services output.
- Lagging States: Bihar, Uttar Pradesh, Jharkhand, and Odisha remain concentrated in low-value traditional services, with limited participation in high-value segments.
- Emerging Catch-Up: Encouragingly, lower-income states are showing “beta convergence”, meaning they are growing faster in services GVA, narrowing the regional gap over time.
NITI Aayog recommends a “Build–Embed–Scale” framework to strengthen state-specific service ecosystems:
- Build - Invest in physical and digital infrastructure.
- Embed - Link services with industrial and skill ecosystems.
- Scale - Promote innovation and decentralised service delivery.
Linkages with Income, Exports, and Digitalisation
- The correlation between a state’s service sector strength and its per capita income is strong; states with higher service contributions, like Karnataka and Telangana, record higher incomes.
- At the macro level, India’s services sector has become the largest recipient of FDI and a key contributor to foreign exchange earnings.
- India’s digitally deliverable services exports, such as software and IT-enabled services, have surged, supported by Global Capability Centres (GCCs) that employ over 1.6 million professionals.
- The report also highlights the growing importance of Digital Public Infrastructure (DPI), including UPI, DigiLocker, and e-governance systems, in enabling service delivery and financial inclusion across Tier-2 and Tier-3 cities.

Policy Priorities for the Road Ahead

NITI Aayog stresses that service-led growth must be inclusive, sustainable, and regionally balanced. Key policy priorities include:
- Expanding digital and physical infrastructure across smaller cities.
- Establishing skill hubs for emerging areas such as fintech, AI, and healthcare.
- Promoting MSME integration into service supply chains.
- Strengthening data and institutional capacity for evidence-based policymaking.
- Encouraging green and sustainable services to align with India’s climate goals.

Source : TH | BW

Service Sector FAQs

Q1: What is the current share of services in India’s employment?

Ans: The service sector accounts for nearly 30% of total employment in India as of 2023–24.

Q2: How many new jobs has the sector created recently?

Ans: The services sector has added approximately 40 million new jobs in the past six years.

Q3: What is the sector’s share in India’s GVA?

Ans: The services sector contributes around 55% to India’s Gross Value Added.

Q4: Which states lead India’s modern services economy?

Ans: Karnataka, Maharashtra, Telangana, Tamil Nadu, Delhi, and Kerala are the top-performing states.

Q5: What are NITI Aayog’s key recommendations for service sector growth?

Ans: NITI Aayog recommends expanding digital infrastructure, regional skill hubs, MSME participation, and sustainable innovation-led service development.

India’s Diaspora Diplomacy: Pride, Power, and the Need for Restraint Abroad

October 29, 2025

Diaspora Diplomacy Latest News

In recent weeks, the Indian diaspora has drawn global attention for religious and cultural displays that, in some cases, have crossed local norms in developed countries.
Incidents such as Ganapati idol immersion in public water bodies and Deepavali fireworks in residential areas have sparked controversy. In Edmonton, Canada, fireworks set two houses on fire, leading police to warn, “Light up your home, not your neighbour’s roof.”
Meanwhile, in Australia, anti-immigrant protesters have targeted Indians, while in the U.S. and Canada, nationalist groups have increasingly focused on the Indian community, reflecting a rising tension between cultural expression and local sensitivities abroad.

Diaspora Diplomacy and Soft Power

India has become the world’s fourth-largest economy with a GDP of USD 4.19 trillion, supported significantly by its 35 million–strong diaspora.
Comprising NRIs and OCIs, the diaspora contributes through remittances exceeding USD 100 billion annually, investments, and social initiatives like village development.
From ancient traders and indentured labourers to today’s skilled professionals, Indian migration has evolved over centuries.
Once criticized as a brain drain, it is now viewed as “brain gain,” symbolizing India’s global strength.
India’s diaspora enhances soft power through culture, technology, and advocacy, influencing major outcomes like the U.S.–India nuclear deal.
However, lobbying successes vary with host-country politics and diaspora unity.

Cultural Assertion and the Evolution of India’s Diaspora Policy

A growing section of the Indian diaspora is displaying assertive cultural nationalism, promoting practices like Deepavali firecrackers abroad as symbols of community pride and identity.
Simultaneously, some groups are urging the diaspora to advocate India’s political positions, especially in the United States.
Historically, however, Jawaharlal Nehru maintained a clear distinction between India and its overseas communities.
While the freedom movement had global links, Nehru insisted that post-Independence India stay out of PIO politics.
He urged persons of Indian origin (PIOs) to remain loyal to their adopted countries, avoiding any perception of Indian interference in foreign domestic affairs.

From Territorial to Cultural Nationalism

In the early decades after Independence, India’s foreign policy and diaspora engagement were guided by territorial nationalism, not cultural identity.
Issues like discrimination and racism were framed as universal human rights concerns, reflecting India’s commitment to global justice rather than ethnic solidarity.

Rise of Global Cultural Nationalism

From the 1990s onward, the increasing Indian migration created a global network of cultural nationalists.
This trend gained strong momentum after Narendra Modi became Prime Minister in 2014, marked by large-scale diaspora rallies abroad, particularly in the United States.

Growing Western Sensitivity to Foreign Influence

At the same time, Western nations — notably the U.S., Canada, Australia, and parts of Europe — became increasingly wary of foreign interference in domestic politics.
Allegations of Chinese and Russian influence sharpened this sensitivity, even as Israel’s lobbying began facing bipartisan criticism in the U.S.
Although foreign influence operations are legal in the U.S. if transparently registered, the state-backed mobilisation of the Indian diaspora has drawn quiet scrutiny.

India’s Position in the Changing Landscape

Historically seen as a benign and diverse immigrant community, Indian Americans now face growing attention as India’s outreach to its diaspora becomes more overtly strategic.
While India has avoided the hostility directed at Russia or China, there are increasing signs of Western unease over efforts to align diaspora networks with New Delhi’s political and cultural agenda.

India’s Approach to Overseas Citizenship

India does not permit dual citizenship, but in 2003, it introduced Overseas Citizenship of India (OCI) status through amendments to the Citizenship Act, 1955.
This provided Persons of Indian Origin (PIOs) with lifetime visa-free entry, exemption from police registration, and rights similar to NRIs in education, property, and business.
In 2015, the government merged the PIO and OCI categories, describing the arrangement as “dual citizenship in spirit, but not in law.”
In contrast, the United States allows dual citizenship, but growing concerns about foreign political influence have prompted calls for stricter scrutiny.
Analysts have voiced concerns about divided loyalties and potential foreign interference.

Navigating Nationalist Tensions Abroad

As Western nations experience heightened nationalism, diaspora communities face pressure to demonstrate loyalty to host countries.
For Indians abroad, expectations to promote India’s interests must be balanced with these realities.
In an era of rising protectionism and political suspicion, “multi-alignment” diplomacy — being loyal to both India and the host nation — is increasingly difficult.
Ultimately, nationalist fervour is not unique to India, and diaspora members must operate within the nationalist sensitivities of their adopted countries.

Source: TH | AFPR

Diaspora Diplomacy FAQs

Q1: Why is India’s diaspora in the news?

Ans: Recent cultural incidents abroad, like fireworks and idol immersions, have sparked debates on responsible behaviour and cultural sensitivity among Indian communities overseas.

Q2: How does the Indian diaspora strengthen India’s influence?

Ans: The diaspora contributes over $100 billion in remittances annually, boosts investments, and enhances India’s global image through cultural, academic, and technological achievements.

Q3: What is India’s approach to overseas citizenship?

Ans: India offers Overseas Citizenship of India (OCI) status—visa-free entry and NRI-like privileges—but no dual citizenship, unlike countries such as the United States.

Q4: How has India’s diaspora diplomacy evolved?

Ans: From Nehru’s hands-off approach to Modi’s active engagement, India’s diaspora has shifted from “brain drain” to “brain gain,” reflecting new cultural assertiveness.

Q5: What challenges do diaspora communities face abroad?

Ans: They must balance loyalty between India and host nations amid rising nationalism, scrutiny over foreign influence, and cultural friction in Western societies.

Delhi’s Cloud-Seeding Trials: Can Artificial Rain Help Reduce Air Pollution?

October 29, 2025

Cloud Seeding Latest News

Amid worsening air quality, the Delhi government, in collaboration with IIT-Kanpur, conducted two cloud-seeding trials to induce artificial rain, though only negligible rainfall was recorded — 0.1 mm in Noida and 0.2 mm in Greater Noida.
According to experts, the weak results were due to low cloud moisture (15–20% humidity), but more sorties are planned as better moisture conditions are expected in coming days.

Cloud Seeding

Cloud seeding is a weather modification technique used to enhance rainfall by introducing “seed” particles into suitable clouds.
- The method was first tested globally in the 1940s.
The process involves dispersing cloud condensation nuclei (CCN) — particles that attract water vapour — or ice nuclei particles, which promote ice crystal formation.
In natural conditions, water vapour condenses around airborne particles to form droplets that grow, collide, and eventually fall as rain.
In cloud seeding, artificial nuclei such as silver iodide or salt particles are added to accelerate this process.
Ice crystals grow faster, combine, and become heavy enough to precipitate, increasing the likelihood of rainfall.

Process of Cloud Seeding

To artificially induce rain, salts such as silver iodide, potassium iodide, or sodium chloride are used as “seeds” to create additional nuclei for cloud droplet formation.
These particles are dispersed into clouds using aircraft, ground-based generators, rockets, drones, or flares.
- The method chosen depends on cloud type and conditions.

Conditions Needed for Successful Cloud Seeding

Cloud seeding can only be done when suitable clouds with adequate depth and moisture are present.
- As per the experts, cloud seeding needs humidity above 50%, cool temperatures, and existing cloud formation.
The process requires a sufficient number of droplets inside clouds to enlarge through condensation and eventually fall as rain. It cannot be done under clear skies.
In Delhi’s winters, cloud formation depends on western disturbances — weather systems originating from the Caspian or Mediterranean Sea that bring non-monsoonal rain to northwest India.
However, these clouds often lack the required depth and liquid water content for effective seeding.
Experts emphasize that before any attempt, it’s essential to assess cloud height, moisture levels, and liquid water content using specialized monitoring tools to determine if conditions are right for seeding.

Environmental concerns

Silver iodide (AgI), used in seeding, is insoluble but toxic in large quantities.
Even small amounts (0.2 micrograms) can harm fish and microorganisms, though iodine in AgI is not considered toxic.

Why Cloud-Seeding Trials in Delhi Failed to Induce Rain

A Delhi government report cited low atmospheric moisture (10–15%), as predicted by the India Meteorological Department (IMD), as the main reason the cloud-seeding trials did not produce significant rainfall.
Experts explained that although there was good cloud cover, moisture levels were too low to trigger rain.
They added that the team gained technical experience from the trials and would conduct a third round once weather conditions improve.

Limited Rainfall and Technical Challenges

Experts noted that while Delhi plans more trials, cloud seeding in convective, low-level clouds remains highly uncertain.
Success depends on timing, cloud type, altitude, and adequate moisture, conditions that are rarely met over the plains.
- Cloud bases were around 10,000 feet, which meteorologists said was too high for effective seeding.
- If clouds descend below 5,000 feet, chances of rainfall improve.
The World Meteorological Organization (WMO) notes that the biggest challenge is quantifying seeding’s actual impact on precipitation.

How Cloud Seeding Helped Reduce Pollution

Despite limited rainfall — 0.1 mm in Noida and 0.2 mm in Greater Noida — the trials had a measurable impact on air quality.
According to the Delhi government’s report, levels of particulate matter (PM2.5 and PM10) dropped after cloud seeding:
- PM2.5 fell from 221–230 to 203–207 across Mayur Vihar, Karol Bagh, and Burari.
- PM10 reduced from 206–209 to 163–177 in the same areas.
The report concluded that while rainfall was minimal, pollution reduction was evident, offering valuable insights for future cloud-seeding efforts.

Air Quality and Broader Solutions

Air quality analysts cautioned that cloud seeding does not address emissions at their source.
Experts point out that such measures — like smog towers or anti-smog guns — offer only short-term benefits.
Sustainable improvement requires coordinated action across states, targeting emissions from transport, power plants, and construction, under an airshed-based approach.

Conclusion

Delhi’s cloud-seeding trials provided valuable learning but limited rain, highlighting the complex science, environmental risks, and logistical constraints of such interventions.
Experts agree that while cloud seeding can supplement pollution control efforts, lasting air quality improvement demands systemic emission reductions and regional cooperation.

Source: TH | IE | HT

Cloud Seeding FAQs

Q1: What is cloud seeding?

Ans: Cloud seeding is a weather modification technique that uses particles like silver iodide or salt to enhance rainfall by stimulating droplet or ice crystal formation.

Q2: Why did Delhi’s cloud-seeding trials fail?

Ans: Low moisture levels (10–15%) and high cloud bases around 10,000 feet prevented sufficient condensation, leading to negligible rainfall despite good cloud cover.

Q3: How did cloud seeding affect air quality in Delhi?

Ans: Although rainfall was minimal, PM2.5 and PM10 levels dropped significantly in areas like Mayur Vihar and Karol Bagh after the trials.

Q4: What conditions are required for successful cloud seeding?

Ans: Effective seeding needs sufficient cloud depth, humidity above 50%, low temperatures, and early targeting of developing clouds before they begin natural rainfall.

Q5: What are the environmental concerns of cloud seeding?

Ans: Excessive use of silver iodide can harm fish and microorganisms, highlighting the need for proper monitoring and environmental impact studies before large-scale use.