UPSC Mains Current Affairs for 3 October 2025

India Withdraws Approval for 11 Animal-Based Biostimulants Over Religious Concerns

October 3, 2025

Biostimulants Latest News

The Union Agriculture Ministry has revoked approval for 11 biostimulants derived from animal sources such as chicken feathers, pig tissue, bovine hide, and cod scales.
These products, earlier cleared for use in crops like paddy, tomato, potato, cucumber, and chilli, were withdrawn following complaints citing “religious and dietary restrictions.”

Biostimulants: An Overview

Biostimulants are natural or synthetic substances that enhance plant growth, nutrient uptake, and stress tolerance, without being traditional fertilizers or pesticides.
It can be derived from plant extracts, microorganisms, animal by-products, or synthetic compounds.
Importantly, biostimulants are distinct from pesticides or plant growth regulators, which are covered under the Insecticide Act, 1968.

Examples of Biostimulants with Uses

Seaweed extracts: Improve root growth, enhance flowering, and increase resistance to drought and salinity.
Humic & fulvic acids: Boost nutrient absorption and soil fertility.
Protein hydrolysates & amino acids: Promote early plant growth, increase yield and fruit quality.
Microbial inoculants (e.g., Azotobacter, Mycorrhizae): Aid in nitrogen fixation, phosphorus solubilization, and better soil health.
Chitosan (from crustacean shells): Enhances plant defense mechanisms against pests and diseases.

Advantages

Improve nutrient use efficiency, reducing dependence on chemical fertilizers.
Enhance plant tolerance to abiotic stresses like drought, heat, or salinity.
Contribute to higher yields and better quality produce (size, color, taste).
Promote soil health and microbial activity, supporting sustainable agriculture.
Environmentally friendly alternative compared to excessive agrochemical use.

Regulation of Biostimulants in India

Biostimulants in India are regulated under the Fertilizer Control Order (FCO), 1985, formally included through a 2021 amendment.
Manufacturers must register products in Schedule VI with detailed data on chemistry, bio-efficacy, toxicology, and heavy metals.
Oversight lies with the Central Biostimulant Committee.

India’s Biostimulants Market

India’s biostimulants market, valued at US$ 355.53 million in 2024, is projected to rise to US$ 1,135.96 million by 2032.
Major producers include Coromandel International, Syngenta, and Godrej Agrovet.
Biostimulants are typically sold in liquid form and applied to crops via spraying.

Centre Withdraws Approval for Animal-Based Biostimulants

The government has withdrawn approval for 11 biostimulants derived from animal-based protein hydrolysates—made from bovine hide, chicken feathers, pig tissue, cod scales, sardines, and other animal parts.
These biostimulants were earlier cleared for crops like paddy, tomato, chilli, cotton, cucumber, soybean, grapes, and green gram.

Regulatory Action

The move came via a recent notification, which omitted these products from Schedule VI of the Fertiliser Control Order (FCO), 1985.
Though cleared earlier this year by the Indian Council of Agricultural Research (ICAR), ICAR later withheld permission citing ethical, religious, and dietary concerns.
It stressed the need for pre-harvest interval data before allowing animal-derived foliar sprays.

Regulatory Evolution

Biostimulants, distinct from fertilisers, are used mainly as sprays to boost crop yield, quality, and growth.
Until 2021, they were freely sold without specific rules on safety or efficacy.
The 2021 amendment to the FCO mandated registration and proof of safety, but companies could continue sales until June 16, 2025, if applications were filed.

Minister’s Concerns on Market Proliferation

Union Agriculture Minister Shivraj Singh Chouhan highlighted the rampant sale of unregulated biostimulants, with nearly 30,000 products in circulation earlier.
Even after stricter checks, about 8,000 remained in the last four years, but the crackdown has now reduced this to around 650 products.

Source: IE | IE

Biostimulants FAQs

Q1: What are biostimulants and how do they help crops?

Ans: Biostimulants are substances or microorganisms that improve plant growth, nutrient uptake, stress tolerance, and yield without being classified as fertilisers or pesticides.

Q2: Why did India withdraw approval for 11 biostimulants?

Ans: The Agriculture Ministry revoked them after complaints from Hindu and Jain communities, citing religious and dietary concerns over animal-based raw materials.

Q3: Which crops were these biostimulants approved for?

Ans: They were cleared earlier for paddy, tomato, potato, cucumber, chilli, cotton, soybean, grapes, and green gram before the approval was withdrawn.

Q4: What regulations govern biostimulants in India?

Ans: Biostimulants are regulated under the Fertiliser Control Order (FCO) 1985, with a 2021 amendment mandating registration, safety tests, and proof of efficacy.

Q5: What is the size of India’s biostimulants market?

Ans: Valued at $355.53 million in 2024, the Indian market is projected to grow to $1,135.96 million by 2032, driven by sustainable agriculture demand.

RBI Relaxes Rules to Boost Market Liquidity and Retail Investor Access

October 3, 2025

RBI Market Liquidity Measures Latest News

The RBI has unveiled key measures to ease access to capital, including removing the ceiling on loans against listed debt securities, raising the loan limit against shares from ₹20 lakh to ₹1 crore, and increasing IPO financing for retail investors from ₹10 lakh to ₹25 lakh.
The steps aim to revitalize India’s financial markets, enhance retail and institutional participation, and improve liquidity amid a busy IPO season.
While boosting lending opportunities for banks, the RBI assured that systemic risks will be managed through macroprudential safeguards, balancing growth with financial stability.

RBI’s Moves Timed to Counter Market Pressures

The RBI’s latest relaxations come as Indian equity markets face global and domestic headwinds.
Trade tensions with the US, H1-B visa curbs, and geopolitical flashpoints in West Asia and Europe have hurt investor sentiment.
Adding to the strain, foreign portfolio investors have withdrawn $21 billion from equities in the past year, weakening the rupee and leaving domestic investors to sustain volumes.
By easing rules on lending against shares, debt securities, and IPO financing, the RBI aims to address liquidity shortfalls, bolster domestic participation, and restore confidence in capital markets, while also helping banks reclaim business from structured credit players.

RBI’s IPO Financing Boost to Broaden Retail Access

The RBI’s decision to raise the IPO financing limit for retail investors from ₹10 lakh to ₹25 lakh comes as several big-ticket offerings, including Tata Capital and LG, near launch.
Strong listing gains and corporate earnings have already fuelled robust investor appetite.
By easing capital constraints, the move will broaden retail participation, inject more liquidity into the primary market, and deepen India’s capital markets.
Analysts note the timing is critical, ensuring savings flow into equities when demand is peaking, thereby sustaining growth momentum and supporting industry funding.

RBI Eases Rules on Lending Against Shares and Securities

The RBI has proposed major relaxations in lending norms, including removing the ceiling on loans against listed debt securities and raising the loan limit against shares to ₹1 crore per borrower, up from ₹20 lakh.
Banks can also now lend more against REITs and InvITs, widening collateral options and boosting liquidity.
The move is expected to increase trading volumes, broaden investor participation, and strengthen credit growth.
Investors, especially high-net-worth individuals, gain quicker and cheaper access to funds without selling securities, while banks benefit from a more diverse collateral base.
However, analysts caution that prudent risk management will be essential to avoid over-leverage in volatile markets.

RBI Lifts Curbs on Lending to Large Borrowers

The RBI has proposed withdrawing its 2016 framework that discouraged banks from lending to corporates with exposures of ₹10,000 crore or more.
Initially introduced to push big firms toward capital markets, the framework is now seen as redundant, since the Large Exposure Framework already caps single-bank lending to large groups, managing concentration risks.
The shift will give corporates easier access to bank credit for major projects, mergers, and expansions, while allowing banks more flexibility in financing without undermining financial stability.

RBI Eases NBFC Funding for Infrastructure Projects

The RBI has proposed reducing risk weights on NBFC loans to operational, high-quality infrastructure projects, lowering capital requirements and enabling more competitive lending rates.
This move is expected to ease financing costs for developers in critical sectors such as roads, power, transport, and renewables, boosting India’s infrastructure growth.
By improving liquidity and encouraging NBFCs to expand exposure to stable, cash-generating projects, the step supports long-term economic development.
However, analysts caution that the relaxation could raise leverage risks in concentrated NBFC infrastructure portfolios, making prudent capital management essential.

RBI Relaxes Rules on ECBs and IFSC Accounts

The RBI has announced major relaxations in External Commercial Borrowing (ECB) norms, including expanding eligible borrowers and lenders, easing maturity and cost restrictions, and simplifying reporting.
These changes are expected to lower overseas borrowing costs and improve compliance ease, making foreign debt more attractive for Indian firms while maintaining safeguards against risk.
In parallel, the RBI has extended the repatriation period for foreign currency accounts in IFSCs (like GIFT City) from one to three months, giving exporters more flexibility in managing forex inflows.
This brings onshore rules in line with offshore arrangements, strengthens liquidity in IFSC banking units, and supports India’s ambition of building a globally competitive financial hub.

Source: IE | MC

RBI Market Liquidity Measures FAQs

Q1: What measures has RBI taken to improve market liquidity?

Ans: RBI removed lending caps on debt securities, raised IPO financing and share loan limits, and relaxed NBFC, ECB, and IFSC regulations to ease liquidity.

Q2: How will IPO financing relaxations benefit retail investors?

Ans: By raising the financing cap from ₹10 lakh to ₹25 lakh, RBI enables broader retail participation in big-ticket IPOs, enhancing liquidity in primary markets.

Q3: What changes were made for lending against shares and securities?

Ans: The limit for individual loans against shares was raised to ₹1 crore, and banks can now lend more against REITs, InvITs, and debt securities.

Q4: How does RBI’s move impact infrastructure funding?

Ans: NBFC loans to operational, high-quality infrastructure projects will attract lower risk weights, reducing financing costs and boosting investment in critical sectors.

Q5: Why did RBI relax ECB and IFSC account norms?

Ans: The changes make overseas borrowing cheaper, expand eligible lenders, and allow exporters more time to repatriate funds, strengthening India’s financial ecosystem.

Draft Rules for Regulation of Online Gaming in India

October 3, 2025

Regulation of Online Gaming in India Latest News

The Ministry of Electronics and IT has released draft rules under the Promotion and Regulation of Online Gaming Act, 2025.
The Act, which received Presidential assent in August 2025, aims to regulate online gaming in India, ensure user safety, and curb societal and security concerns linked to money-based online games.

Key Provisions of the Draft Rules

Establishment of the Online Gaming Authority of India:
- Composition: A chairperson and five members from various government ministries.
- Powers:
  - Decide whether a game qualifies as an “online money game.”
  - Register online games.
  - Issue directions and impose penalties.
  - Cancel registration in case of material changes (e.g., revenue model shift to betting).
Scope of regulation:
- Prohibited: All forms of online money games (poker, fantasy sports, wagering).
- Permitted: “Online social games” and e-sports, for purposes like recreation, education, and skill development.
Registration process:
- Mandatory for all online game operators.
- Companies must provide:
  - Revenue model.
  - User safety measures.
  - Proof that revenue comes from ads, subscriptions, or one-time fees (not wagers).
Penalties and liabilities:
- Violations classified as non-bailable offences.
- Entire company staff can be held liable.
- Penalty quantum to be decided based on:
  - Profits earned through non-compliance.
  - Losses caused to users.
  - Repeated nature of violation.
Grievance redressal mechanism (3-tiered system):
- Internal redressal by the gaming service provider.
- Appeal to the Grievance Appellate Committee (under IT Intermediary Rules, 2021).
- Appeal to the Online Gaming Authority.
Role of Ministry of Information and Broadcasting:
- Issue codes of practice for classification of online social games.
- Provide guidelines for games related to recreation, education, and skill development.

Significance of the Draft Rules and Way Forward

Significance:

- Addresses security and societal concerns over online gaming.
- Introduces comprehensive regulation for a growing digital sector.
- Balances innovation in e-sports and gaming with public safety and consumer protection.

Way forward:

- Ensure clarity in defining “online money games” vs. “social games.”
- Build stakeholder consensus through public consultation (Example, draft rules open for public consultation till October 31).
- Develop technological tools to monitor compliance.
- Encourage responsible gaming while supporting India’s gaming and e-sports industry growth.

Conclusion

The draft rules mark a decisive step in regulating India’s fast-growing online gaming industry.
The government seeks to safeguard consumers, curb societal harms, and promote e-sports and skill-based gaming.
The balance between regulation and innovation will determine the effectiveness of this legislation in shaping a responsible digital gaming ecosystem in India.

Source: IE

Regulation of Online Gaming in India FAQs

Q1: What is the primary objective of the Promotion and Regulation of Online Gaming Act, 2025?

Ans: To regulate online gaming in India by prohibiting money-based games and promoting safe, skill-based and social gaming.

Q2: How is the Online Gaming Authority of India structured?

Ans: It consists of a chairperson and five members from different ministries, empowered to register games, classify them, cancel registrations for violations, etc.

Q3: What is the difference between ‘online money games’ and ‘online social games’?

Ans: Online money games involve stakes or wagers and are prohibited, while online social games and e-sports for recreation, education, or skill development are permitted.

Q4: What is the grievance redressal mechanism under the draft online gaming rules?

Ans: It is a three-tier system: internal grievance mechanism of service providers, appeal to the Grievance Appellate Committee, and final appeal to the Online Gaming Authority.

Q5: What challenges need to be addressed for the effective implementation of the online gaming regulatory framework?

Ans: Clear definitions of permissible games, effective monitoring tools, preventing misuse of platforms, and balancing regulation with industry innovation.

China’s Growing Role in the Global Electrolyser Market

October 3, 2025

Electrolyser Market Latest News

China is capturing nearly 85% of the global alkaline electrolyser market, raising concerns about its dominance in green hydrogen supply chains.

Introduction

As the world transitions towards clean energy, green hydrogen has emerged as a central pillar of decarbonisation strategies.
Electrolysers, which split water into hydrogen and oxygen using electricity, are at the heart of this revolution.
Much like photovoltaic (PV) modules in solar energy, electrolysers are becoming critical in determining the pace and cost-effectiveness of green hydrogen adoption.
A new debate has surfaced around China’s growing dominance in electrolyser manufacturing and whether it can replicate its success from the solar industry in this new sector.

The Role of Electrolysers in Green Hydrogen

Green hydrogen is produced when electrolysers use renewable electricity, such as from wind or solar, to split water. Currently, two main types of electrolysers are commercially used:
- Alkaline Electrolysers (ALK): A mature technology with lower costs but less efficient under fluctuating loads, making them less suited for renewables.
- Proton Exchange Membrane (PEM) Electrolysers: More efficient at variable loads and capable of producing high-purity hydrogen, though significantly costlier due to reliance on rare metals like platinum and iridium.
Electrolysers are thus crucial in scaling up global green hydrogen production, especially as industries such as refining, steelmaking, and ammonia production pivot towards decarbonisation.

China’s Dominance in the Electrolyser Market

By 2024, China had become the world’s leading hydrogen producer with 36.5 million tonnes annually, including 1,20,000 tonnes of green hydrogen, nearly half the global share. Its dominance in the electrolyser market stems largely from:
- Manufacturing Scale: China controls about 85% of global alkaline electrolyser capacity.
- Cost Advantage: Chinese alkaline electrolysers are up to 45% cheaper for international buyers, especially in Europe.
- Integrated Supply Chains: Abundant domestic access to raw materials like nickel and steel lowers costs.
- Rapid Deployment: Chinese firms such as LONGi and Envision Energy are not only producing electrolysers but also constructing overseas hydrogen plants.

Price Reductions and Market Push

Electrolyser prices in China have fallen steeply, aided by economies of scale and supply chain maturity:
- A 5 MW ALK electrolyser system cost six million yuan (~$167/kW) in 2024, a 20% drop from 2023.
- A 1 MW PEM electrolyser system was priced at the same six million yuan (~$838/kW), reflecting a 32% fall in one year.
These reductions enhance China’s competitiveness, mirroring the strategy it adopted in the solar PV industry.

Challenges to China’s Global Expansion

Despite its momentum, China faces hurdles in capturing the electrolyser market outright:
- Resource Constraints: PEM electrolysers need precious metals like platinum and iridium, where China depends heavily on imports.
- System Integration Requirements: Hydrogen systems must be tailored to purity and end-use, limiting the benefits of scale alone.
- Geopolitical Pushback: Unlike the solar sector, many countries view green hydrogen as strategic and are building domestic capabilities, creating resistance to Chinese imports.
- Regulatory Scrutiny: Concerns over supply chain security and national energy independence are likely to restrict China’s free entry into global markets.

Global Competition in Green Hydrogen

While China is scaling aggressively, other nations are also ramping up efforts. The EU, U.S., Japan, and India have launched national hydrogen missions to secure domestic manufacturing capacity and reduce reliance on imports.
This creates a more contested environment than the solar PV industry, where China’s entry was relatively unchallenged.

Source: TH

Electrolyser Market FAQs

Q1: What role do electrolysers play in green hydrogen production?

Ans: Electrolysers split water into hydrogen and oxygen using electricity, making them central to green hydrogen production.

Q2: Which electrolyser technology is cheaper and widely produced by China?

Ans: China dominates in alkaline electrolysers, which are cheaper but less efficient than PEM electrolysers.

Q3: Why are PEM electrolysers costlier than ALK electrolysers?

Ans: PEM electrolysers use precious metals like platinum and iridium, which are expensive and imported.

Q4: How much of the global alkaline electrolyser manufacturing does China control?

Ans: China holds nearly 85% of global alkaline electrolyser manufacturing capacity.

Q5: What challenges could restrict China’s dominance in the electrolyser market?

Ans: Resource dependence, system integration needs, regulatory scrutiny, and global competition could limit its dominance.