Current Affairs of 17 September 2026

Mining Amendment is Unfair to States 

Context

• India’s mineral resources are concentrated in States such as Odisha, Jharkhand, Chhattisgarh and Karnataka.
• These resources support industrialisation, employment and public revenue. However, mining also causes displacement, environmental degradation, infrastructure pressure and depletion of non-renewable resources.
• The Mines and Minerals (Development and Regulation) Amendment Act, 2026 raises important questions about the distribution of mining benefits and burdens.
• Although the amendment seeks to promote investment, it has significant implications for State fiscal autonomy, constitutional federalism and resource justice.

Mineral Wealth and Unequal Regional Development

• India’s mineral economy reflects the geographical concentration of natural resources.
• Odisha, Jharkhand, Chhattisgarh and Karnataka possess valuable deposits of coal, iron ore and other minerals that supply industries across the country.
• Mining generates investment, employment and industrial growth. Royalties, auction premiums and other payments strengthen State finances.
• However, mineral-producing regions frequently bear the direct costs of extraction, including:
• Displacement and resettlement of communities.
• Environmental damage and ecological loss.
• Pressure on roads, water supply, healthcare and other public infrastructure.
• Long-term economic consequences of extracting non-renewable resources.

Section 9D and the Question of State Revenue

• Section 9D restricts State Governments from imposing taxes, cesses or other levies on mineral rights or mineral-bearing land except under conditions prescribed by the Centre.
• The Central Government argues that the provision will create a predictable taxation environment, prevent excessive levies and encourage long-term investment.
• Mining projects involve substantial capital and operate over extended periods, making financial stability important for investors.
• However, the issue extends beyond existing revenues. The Centre maintains that 90% of mining sector revenue accrues to States and that this arrangement will continue.
• The larger concern is whether States will retain the ability to raise additional revenue from mineral resources in the future.
• A mineral-rich State possesses a natural economic advantage. Restricting its ability to use that advantage for development may reduce its fiscal flexibility.
• NITI Aayog’s Fiscal Health Index has recognised the revenue mobilisation performance of Odisha and Chhattisgarh and the role of mining receipts.

The Federal Problem

• Under Entry 50 of the State List, States possess the power to tax mineral rights, subject to limitations imposed by Parliament through laws relating to mineral development.
• The 2026 Amendment raises questions about the extent to which Parliament can restrict these powers through mineral-development legislation.
• While Entry 50 permits limitations on taxation of mineral rights, extending restrictions to mineral-bearing land may create a separate constitutional issue concerning Entry 49.
• The amendment therefore raises a broader question: can a Central law regulating mineral development substantially restrict a State’s independent power to tax land?

Fiscal Federalism and Resource Justice

• India’s federal system requires States to perform important responsibilities while possessing adequate financial resources.
• Mineral-producing States often bear the direct consequences of extraction, including environmental damage, infrastructure stress and social displacement.
• If States are prevented from raising resources from mineral wealth, they may face difficulties financing the development needs of affected communities.
• This creates a potential imbalance between national benefits and regional costs.
• Fiscal federalism requires a balance between national economic objectives and the financial autonomy necessary for States to fulfil their responsibilities.
• Uniformity may encourage investment, but excessive centralisation can weaken the ability of States to respond to their own economic and environmental conditions.

The Way Forward: Balancing Investment and State Autonomy

• The debate over the MMDR Amendment should not be reduced to a choice between investment and taxation. Both objectives are important.
• Investors require stable rules, transparent taxation and long-term certainty. States require adequate revenue, constitutional authority and the ability to finance public services.
• A balanced approach would seek to:
  • Maintain predictable taxation for mining investors.
  • Preserve the constitutional powers of State Governments.
  • Ensure adequate compensation for extraction-related costs.
  • Strengthen transparency in the distribution of mining revenues.
  • Encourage cooperation between the Centre and States in mineral policy.
  • Such an approach would recognise that national industrial development depends partly on the economic and social stability of mineral-producing regions.

Conclusion

• The MMDR Amendment, 2026, represents an important development in India’s mining and federal governance framework.
• Section 9D seeks to promote investment certainty and prevent excessive levies, but it also raises questions about the future fiscal autonomy of mineral-rich States.
• A sustainable mining policy must combine investment certainty, fiscal federalism, environmental responsibility and equitable resource distribution.
• The long-term success of India’s mineral economy will depend not only on how much wealth is extracted, but also on how fairly that wealth and its costs are shared.

Mining Amendment is Unfair to States FAQs

Q1. What is the main purpose of the MMDR Amendment, 2026?
Ans. The amendment aims to promote investment certainty and regulate State taxation of mineral resources.

Q2. Which provision restricts State taxation powers?
Ans. Section 9D restricts State Governments from imposing certain levies on mineral rights and mineral-bearing land.

Q3. Why is mining important for mineral-rich States?
Ans. Mining generates revenue, employment and industrial development in mineral-rich States.

Q4. What constitutional issue does the amendment raise?
Ans. The amendment raises questions about the balance between Parliament’s mineral-development powers and State taxation powers.

Q5. What is essential for sustainable mining?
Ans. Sustainable mining requires investment certainty, fiscal federalism, environmental responsibility and equitable resource distribution.

Source: The Hindu

Blue Revolution - Unlocking India’s Maritime Potential for Inclusive and Sustainable Growth

Context

• India’s development strategy increasingly emphasises inclusive growth, with the idea of Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas.
• The next phase of this inclusive growth can come from India’s vast marine and fisheries resources, particularly through sustainable exploitation of the Exclusive Economic Zone (EEZ) and high seas.
• The approach seeks to transform geographical and economic marginalisation into opportunity by recognising backward districts as Aspirational Districts, border settlements as Vibrant Villages, and the Northeast as Ashtalakshmi.

From Green and White to Blue Revolution

• India’s development experience has witnessed major transformations -
  • Green revolution: Addressed food shortages and strengthened India’s contribution to global food security. India is now among the leading producers of rice, wheat, pulses and millets.
  • White revolution: Eliminated chronic milk shortages and dependence on dairy imports, making India the world’s largest milk producer.
  • Blue revolution: The fisheries and aquaculture sector represents the next major opportunity for food security, nutrition, employment and exports.
• The blue economy broadly refers to the sustainable use of ocean resources for economic growth, improved livelihoods and employment while preserving marine ecosystem health.

India’s Untapped Maritime Potential

• India has over 11,000 km of coastline; an EEZ of nearly 24 lakh sq km; and a rich maritime heritage and substantial marine biodiversity.
• Despite this potential, fishing historically remained concentrated close to the coastline.
• The deep waters of the EEZ and high seas offer opportunities for sustainable harvesting of high-value species such as tuna.
• The creation of the Ministry of Fisheries, Animal Husbandry and Dairying in 2019 gave dedicated institutional attention to fisheries.
• The sector has subsequently emerged as a sunrise sector. India is now the 2nd-largest fish-producing country, contributing around 8% of global fish production.
• Fisheries and aquaculture support the livelihoods of nearly 3 crore fishers and fish farmers, while fish production exceeded 195 lakh tonnes in 2024-25.

Policy Push for Deep-Sea and High-Sea Fisheries

• The Union Budget 2025-26 recognised the untapped potential of India’s deep waters and proposed an enabling framework for sustainable fisheries in the EEZ and high seas.
• The Fisheries Rules for the EEZ and Guidelines for Fisheries in the High Seas, 2025 mark an important shift towards expanding India’s marine fishing frontier while keeping conservation at the centre.
• A key feature is placing traditional fishing communities and their collective institutions at the centre.
• Priority is given to fisheries cooperatives; Fish Farmer Producer Organisations (FFPOs); and Indian fishermen.
• This can enable fishing communities to access deeper waters, modern technology, finance and markets rather than allowing expansion to benefit only large commercial operators.

Lakshadweep - A Strategic Maritime Asset

• Lakshadweep illustrates India’s enormous maritime potential.
• Despite having a land area of only around 32 sq km, it possesses nearly 145 km coastline; lagoon area of about 4,200 sq km; territorial waters exceeding 20,000 sq km; and EEZ of about 4 lakh sq km.
• Thus, Lakshadweep accounts for nearly one-sixth of India’s EEZ, highlighting the strategic and economic significance of India’s island territories.
• The Pradhan Mantri Matsya Sampada Yojana (PMMSY) has also supported fisheries development projects in Lakshadweep.

Fisheries as an Engine of Jobs, Exports and Women’s Participation

• India’s seafood reaches more than 120 countries. Seafood exports crossed ₹73,000 crore in the last financial year mentioned, representing a rise of over 140% since 2013-14.
• Greater use of digital authorisation systems; vessel tracking; international certification; processing and quality-control systems can improve traceability, market access and India’s competitiveness in premium seafood markets.
• Deep-sea fisheries can generate employment beyond fishing itself, including processing, cold chains, transportation, packaging, logistics and exports.
• This creates opportunities for youth and can expand women’s participation in processing and value addition.

Sustainability Must Accompany Expansion

• The expansion of marine fisheries must not compromise ocean ecosystems.
• Unsustainable fishing, overexploitation and Illegal, Unreported and Unregulated (IUU) fishing can undermine long-term food security and livelihoods.
• The new framework therefore emphasises compliance with conservation measures; sustainable harvesting; monitoring and vessel tracking; action against IUU fishing; and responsible exploitation of marine resources.

Way Forward:

• For India’s Blue Economy to become genuinely inclusive, the focus should extend from merely increasing fish production to developing a complete marine value chain.
• This requires -
  • Modern technology: GPS, satellite monitoring, deep-sea fishing technology and digital traceability.
  • Access to finance: Affordable credit and insurance for small fishers and cooperatives.
  • Cold-chain infrastructure: Reducing post-harvest losses and improving export quality.
  • Skill development: Training youth in modern fisheries, navigation, processing and marine technologies.
  • Women-led value addition: Greater participation in processing, packaging and marketing.
  • Marine conservation: Science-based catch limits, sustainable fishing practices and stronger action against IUU fishing.
  • Cooperative approach: Strengthening fisheries cooperatives and FFPOs so that local communities capture a larger share of value.

Conclusion:

• The Blue Revolution can become an important pillar of Viksit Bharat @ 2047 by combining economic opportunity with ecological responsibility.
• Therefore, fishing must not merely remain an inherited occupation but as a modern, technology-driven and globally connected profession balancing the ‘triple bottom line’ of economic viability, social equity and ecological sustainability.

Blue Revolution FAQs

Q1. What is the significance of the Blue Revolution for India’s inclusive growth?

Ans. It can enhance food and nutritional security, employment, exports, coastal livelihoods and women’s participation.

Q2. Why are India’s EEZ and high seas important for the future of fisheries?

Ans. India’s nearly 24 lakh sq km EEZ offers substantial untapped potential for sustainable deep-sea fishing.

Q3. How can deep-sea fisheries contribute to employment generation?

Ans. By creating jobs across the harvesting–processing–cold chain–transportation–packaging–logistics–export value chain.

Q4. What are the major sustainability concerns associated with expansion of marine fisheries?

Ans. Fisheries expansion must address overfishing, marine ecosystem degradation and IUU fishing.

Q5. What measures are required to make India’s Blue Economy inclusive and sustainable?

Ans. India needs modern technology, affordable finance, cold-chain infrastructure, skill development, etc.

Source: IE

What India’s Growth Really Means

Context

• India's real GDP grew 7.8 per cent in April–June 2026, exceeding the RBI's forecast of 7 per cent despite the West Asian conflict, high energy prices and uncertain global trade.
• In this context, this article highlights that the true significance of this number lies in the breadth of production and demand.
• It also argues that India must now convert this momentum into private investment, quality jobs and domestic resilience.

A Sustained Growth Trajectory

• The latest quarter continues a strong run:
  • 2023-24: 7.2 per cent
  • 2024-25: 7.1 per cent
  • 2025-26: 7.7 per cent
  • April–June 2026: 7.8 per cent
• Real GDP, the value of goods and services after adjusting for inflation, rose to Rs 81.36 lakh crore.
• Real Gross Value Added (GVA), the value added by farms, factories and services before product taxes and subsidies, grew 8.2 per cent to Rs 82 lakh crore.

Broad-Based Production Growth

• Growth is spread across sectors, with a few identifiable weak spots:
  • Manufacturing:2 per cent;
  • Utilities:9 per cent;
  • Construction:7 per cent;
  • Secondary sector overall:6 per cent;
  • Services: 10 per cent, led by finance, real estate, IT and professional services at 12.1 per cent;
  • Agriculture:6 per cent;
  • Mining: contracted 2.4 per cent.

Strong Demand Indicators

• Demand-side data reinforces the picture:
  • Gross fixed capital formation (GFCF) grew 11.9 per cent
  • Private consumption grew 7.1 per cent
  • Real exports grew 12 per cent

The Investment Composition

• Using GFCF data for 2023-24, analysts break down who is investing:
  • Private corporations: 10.3 per cent of GDP;
  • General government: 4.2 per cent of GDP;
  • Total public sector (including public corporations): 7.8 per cent of GDP;
  • Total non-public investment (including household investment in housing and unincorporated businesses): 24.1 per cent of GDP.
• The lesson is clear. Public capital expenditure has built the platform, but the next acceleration requires more private investment.

Understanding the Base Year Change

• The base year was updated from 2011-12 to 2022-23. A base year removes inflation and reflects the economy's structure.
• Updating it replaces an outdated market basket with today's products, services and prices.
• Some estimates may rise and others fall, but "changing the ruler does not shrink the economy."

India Among the Fastest-Growing Major Economies

• On comparable year-on-year data, India's 7.8 per cent exceeded:
  • Malaysia: 6 per cent
  • Singapore:9 per cent
  • Indonesia:29 per cent
  • China: 4.3 per cent
• India's expanding market supports global demand for energy, technology, machinery and services, while offering a trusted location for diversified supply chains.
• This advances India's path to becoming the world's third-largest economy in nominal terms.
• But since rankings also reflect prices and exchange rates, the milestone will endure only if real growth leads to higher productivity, stronger firms and better household incomes.

Employment: The Decisive Test

• India added 19 crore jobs between 2014-15 and 2023-24, according to RBI KLEMS-based data.
• The next employment revolution must focus on job quality through productivity, wages, formalisation, social security and skilling.
• Women's labour force participation reached 7 per cent in 2023-24.
• Bringing more women into productive employment requires safe transport, affordable childcare, flexible work, and access to credit and markets.

The Agenda for the Next Phase

• Manufacturing must move from assembly to design, components, machinery, electronics and clean technology.
• Services must spread beyond metros into tourism, health, education, logistics, finance and Indian-language digital businesses.
• AI preparedness must move from adoption to original capability through domestic compute, Indian-language data, research talent and trusted applications.
• Free Trade Agreements must be properly used. An FTA utilisation mission should guide firms on tariff rules and markets.
• MSMEs need hand-holding on non-tariff barriers through shared testing, affordable certification, standards, customs support and buyer discovery.

Energy and Domestic Resilience

• External ambition requires domestic resilience. India should counter energy risks through diversified suppliers, long-term contracts, strategic reserves, renewables, domestic exploration and efficiency.
• Timely infrastructure, predictable regulation, easier credit and stable taxation can crowd in private investment.

Conclusion

• The 7.8 per cent quarter warrants confidence, not complacency.
• India must convert public capital expenditure into private investment, job numbers into quality employment, and FTAs into opportunities for MSMEs.
• If energy and macroeconomic stability accompany inclusion, productivity and transparent measurement, becoming the third-largest economy will be a foundation for broad-based prosperity rather than a mere statistical milestone.

What India’s Growth Really Means FAQs

Q1. What was India’s real GDP growth in April–June 2026?

Ans. India’s real GDP grew 7.8 per cent in April–June 2026, exceeding the RBI’s 7 per cent forecast despite global economic uncertainties.

Q2. Which sectors contributed significantly to India’s growth?

Ans. Manufacturing, utilities, construction and services contributed strongly, with services growing 10 per cent and manufacturing expanding 9.2 per cent during the quarter.

Q3. What do demand indicators reveal about India’s growth?

Ans. Demand indicators remained strong, with gross fixed capital formation growing 11.9 per cent, private consumption 7.1 per cent and real exports 12 per cent.

Q4. Why is greater private investment important for India’s growth?

Ans. Public capital expenditure has created the investment platform, but India’s growth needs stronger private investment to sustain the next phase of economic acceleration.

Q5. What should India focus on to sustain economic growth?

Ans. India should strengthen manufacturing, services, AI capabilities, MSMEs, energy security and private investment while improving employment quality, productivity and domestic resilience.

Source: TH