10 Years of UPI

Why in News?

UPI, now 10 years old, has become India’s backbone for digital payments, has not just transformed payments in India, but the behaviour of customers and merchants.

What is UPI & it’s working?

• UPI (Unified Payments Interface) – It is India’s mobile-based, real-time payment system that allows instant money transfers between bank accounts using a smartphone app, without needing to enter sensitive bank details each time.
• Purpose – To simplifies digital payments by linking multiple bank accounts to one app.
• Developed by – NPCI on 2016, which has  transformed digital payments ecosystems.
• Regulated by – Reserve Bank of India (RBI).
• The system uses Immediate Payment Service (IMPS) and Aadhaar Enabled Payment System (AEPS) for seamless money transfers.

Working

• Setup – Download a UPI-enabled app (e.g., PhonePe, Google Pay, Paytm, BHIM), link your bank account, create a Virtual Payment Address (VPA) (e.g., name@bank), & set a UPI PIN for authentication.
• Transaction Flow – To send money, enter recipient’s UPI ID/scan QR, enter amount, confirm with UPI PIN.
• For request money, enter payer’s UPI ID, request amount, payer approves with UPI PIN.
• Both sender and receiver get instant confirmation.

Journey of UPI  

What is the present status of UPI in India?

• UPI’s Growth rate & Target – UPI is growing at a healthy rate of 30% and is now targeting a billion users over the next 10 years.
• User base – The platform currently has around 400 million active users.
• Nature of growth – The growth feels more organic now because the base is huge.
• But in absolute transaction volumes, expansion will remain relentless as UPI becomes a financial identity for all age groups and population segments.
• NPCI’s Innovation Drive with UPI – NPCI, which runs UPI, has kept up the pace of innovation even as the platform and the company have scaled up dramatically over the last 10 years.
• Ecosystem Scale – More than 700 banks plug into the UPI network.
• There are close to 50 third-party UPI apps (TPAP) like PhonePe and Google Pay.
• More than 100 financial apps connect to the network through partners.
• Smaller Players Rising – Navi, super.money, BHIM, WhatsApp Pay showing growth & new apps focusing on RuPay Credit on UPI: Kiwi, Jupiter, BharatPe, Scapia, all these could become major players in the next decade.
• Market Outlook – The pie is expanding, inevitably, no single player can serve all needs, will expect broad‑based players (general services) + specialists (recurring payments, credit products).
• Recent Launches
  • Reserve Pay – AI‑powered agentic payments for e‑commerce without user intervention.
  • Biometric Authentication – Fingerprint/face ID for UPI payments.
  • UPI Circle – Delegated payments to others for minors & seniors with checks/controls.
  • Credit Line on UPI (CLOU) – Access to micro‑credit.
  • Hello UPI – Voice‑activated UPI payments.
  • BillPay Connect – Facilitates chat-based bill payments.
  • UPI Tap & Pay – Payments based on near-field communication (NFC) technology
  • UPI Lite X – An on-device wallet facility.
  • Cash Withdrawal in ATMs – via UPI without using cards.
• NPCI’s Strength and focus
• Infinite Scalability – UPI’s technology stack architecture allows for infinite scalability.
• It is designed for limitless growth, supporting massive transaction volumes.
• Reliability – UPI faces several failures at the bank-level, the system-wide outages are rare.
• NPCI has been working with banks to improve the technical decline (TD) rates (server unavailability issues) to reduce such incidents.
• From around 5-6% in 2020 and 2021, the TD rates have come down to below 1% for most large banks.
• Ownership & Model – NPCI is owned by the banks and other payment companies.
• Being a non-profit organisation, the organisation is likely investing all the profits to build more products and add more features.

What about the global impact created by the UPI?

• Focus on internationalization – NPCI is expanding UPI abroad and boosting RuPay credit cards with offers/partnerships.
• Global Recognition – India’s digital payments model praised by IMF and World Bank for scale, efficiency, inclusiveness.
• Leaders like Emmanuel Macron (President of France) highlighted UPI’s unmatched scale (over 20 billion monthly transactions).
• Cross‑border Expansion – UPI has expanded beyond India and is now linked with payment systems in
  • UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, Mauritius, and Qatar.
• Significance – This growing international footprint is facilitating cross-border transactions, supporting remittance flows, and contributing to financial inclusion, while strengthening India’s role in the global fintech landscape.

What are the concerns?

• Subsidies Declining – The central government subsidies for UPI have been declining since FY 24, even as transaction volumes keep rising.
• Fraud & Security Risks – Digital payment frauds are increasing & emerging tech like AI and quantum computing are likely to threaten security and strengthen defenses.
• Lack of monetisation – The payment companies have been requesting the government to implement the Merchant Discount Rate (MDR) on high value  transactions or large merchants, who have an annual turnover of more than Rs 40 lakh.
  • Merchant Discount Rate (MDR) – The fee businesses pay for digital transactions (like credit cards, debit cards, or UPI), it usually 1–3% of the transaction amount, covering bank and network processing costs.
• Credit Line on UPI (CLOU) offers some revenue, but scale is still too small.
• Infrastructure Strain – UPI processes 22 billion transactions/month or over 750 million transactions/day.
• It requires huge investment in data centers and robust tech stacks to handle peak loads.
• Ecosystem partners worry about long-term viability without stronger revenue streams.
• Two‑player dominance – PhonePe has around 45% market share followed by Google Pay at around 33% (together accounts for approximately 78%) & Paytm is 6%, much smaller share.
• The consumer market has sparked fears of systemic risks if any breach or outages happen at either of these companies.
• Several members of the Parliament has expressed fears of both these companies being owned by US-owned multinational firms, possible relief if PhonePe lists in India.

What are the future opportunities?

• Next phase of growth – The next focus is not just transaction value/volume, but bringing more people into the system.
• Credit Expansion – Enabled formal lending for underserved populations with a target of  500 million credit customers.
• Micro-credit – Provide micro-credit to the millions of underserved people in the country, who do not have access to formal credit at reasonable interest rates.
• Credit Line on UPI – It expected to become large and successful if more banks and non-banking financial companies could participate in the ecosystem.

References

1. Money Control | UPI at 10: Next phase of growth
2. Investopedia | UPI

Green Factory Standards for India

Why in News?

Recently there has been a demand to create green factory standards for India to make the manufacturing process more climate friendly.

What is the issue?

• Changing Global Sustainability Landscape – The global manufacturing ecosystem is undergoing a transformation driven by climate commitments, ESG (Environmental, Social, and Governance) norms, and carbon accountability.
• Today, supply chains are evaluated not just on cost and efficiency but also on their environmental footprint.
• Investors increasingly favor companies with credible sustainability disclosures, and global indices reward standardized certifications.
• Case in developed nations – In developed economies, green manufacturing achievements are often backed by widely recognized certifications, enabling industries to attract capital and enhance market credibility.
• In contrast, Indian manufacturing units, despite achieving comparable or even superior sustainability outcomes, often fail to receive similar recognition due to fragmented certification systems.
• This disparity highlights the importance of institutional frameworks in shaping global perception.
• India’s Industrial Growth and Climate Dilemma – India contributes approximately 7–8% of global greenhouse gas emissions while aiming to expand its manufacturing sector significantly over the next decade.
• With industrial output projected to grow rapidly, the country must decouple economic growth from environmental degradation.
• Dual obligation – This creates a structural dual mandate:
  • Accelerate industrialization to sustain economic growth and employment.
  • Reduce emissions intensity in line with global climate commitments.
• Achieving this balance requires a structured and context-sensitive framework tailored to India’s unique conditions.
• Challenges – Factors such as varying state-level energy tariffs, high levels of water stress across more than half of the country’s land area.
• The dominance of MSMEs (Micro, Small, and Medium Enterprises) make it impractical to replicate Western green manufacturing models.

What are the Existing Green Certification Ecosystem in India?

• Available  certifications – Several robust certification systems already exist, including:
  • Green building ratings
  • Energy efficiency programs
  • Industrial sustainability assessments
• These frameworks are scientifically sound and adapted to local conditions.
• Other initiatives – Measures such as rooftop solar adoption, waste heat recovery, and recycling practices are gaining momentum across manufacturing clusters.
• Issues with the existing measures – However, the issue lies in fragmentation.
• Multiple certifications operate independently without converging into a unified national standard.
• This leads to:
  • Lack of a single recognizable benchmark
  • Reduced global legibility
  • Difficulty in communicating sustainability achievements to international stakeholders
• The Certification Paradox – India faces a paradox where sustainability practices are advancing faster than their institutional recognition.
• Thousands of manufacturing units, especially among MSMEs, are adopting green practices such as renewable energy usage, water conservation, and waste management.
• Yet, these efforts often remain undervalued in global markets.
• The consequences:
  • Limited access to ESG-linked financing
  • Reduced export competitiveness
  • Inadequate integration into global green supply chains
• International investors and rating agencies often rely on familiar global standards, leading to under-recognition of India-specific certifications.
• This creates an uneven playing field despite genuine progress on the ground.

Why India Needs Its Own Green Factory Framework

• Contextual Relevance – India’s environmental and economic conditions differ significantly from developed nations. A domestic framework can account for:
  • Water scarcity challenges
  • Energy cost variability
  • MSME constraints
  • Regional climatic diversity
• Enhanced Global Competitiveness – A unified certification can act as a credible signal to global investors and supply chains, improving India’s position as a sustainable manufacturing hub.
• MSME Inclusion – With MSMEs contributing over 30% of GDP and employing millions, any sustainability framework must be scalable and accessible.
• A tailored system can ensure inclusivity rather than exclusion.
• Capital Attraction – Clear and standardized sustainability metrics can help industries attract ESG-focused investments, which are increasingly shaping global capital flows.
• Policy Alignment – Such a framework can integrate seamlessly with national initiatives like production-linked incentives (PLI) and sustainability disclosure requirements, ensuring coherence across policies.

What are the Key Components of an Indian Green Factory Standard?

• Energy Efficiency and Renewable Adoption – Measurement of energy consumption intensity.
• Integration of renewable sources such as rooftop solar.
• Incentives for energy optimization technologies.
• Water Stewardship – Efficient water usage practices.
• Recycling and reuse systems.
• Adaptation strategies for water-stressed regions.
• Waste and Circular Economy Practices – Waste reduction and recycling
• Industrial symbiosis.
• Resource recovery mechanisms.
• Carbon Footprint Reduction – Emissions tracking and reporting.
• Transition pathways toward net-zero goals.
• Digital and Technological Integration – Use of smart monitoring systems.
• Data-driven sustainability reporting.
• Financial and Market Linkages – Alignment with ESG reporting standards.
• Facilitation of green financing opportunities.
• MSME Scalability – Simplified compliance mechanisms.
• Tiered certification levels to encourage gradual adoption.
• Linking Sustainability with Strategic Growth – Sustainability is no longer a peripheral concern, it is central to industrial strategy.
• A well-defined green factory framework can:
  • Strengthen India’s export competitiveness by aligning with global environmental standards.
  • Reduce long-term energy and operational risks.
  • Enhance resilience against climate-induced disruptions.
  • Improve brand value and global reputation.
• Moreover, integrating sustainability into industrial identity can position India as a preferred destination for low-carbon manufacturing, especially as global supply chains diversify.

What should be done?

• Policy Convergence – Collaboration between ministries, industry bodies, and regulatory agencies to create a unified framework.
• Global Alignment with Local Adaptation – Ensuring compatibility with international standards while retaining Indian specificity.
• Incentivization Mechanisms – Financial and regulatory incentives to encourage adoption, particularly among MSMEs.
• Capacity Building – Training and awareness programs to facilitate implementation at scale.
• Robust Monitoring and Verification: Ensuring transparency and credibility in certification processes.

What lies ahead?

• India’s journey toward becoming a global manufacturing powerhouse cannot be divorced from sustainability imperatives.
• While industries are increasingly adopting green practices, the absence of a unified and globally recognized certification system undermines their potential impact.
• Defining an Indian green factory standard is not merely an environmental necessity but an economic imperative.
• It will enable the country to communicate its sustainability achievements effectively, attract global capital, and integrate seamlessly into future-ready supply chains.
• An Indian green factory does not need to mirror Western models to be considered sustainable.
• Instead, it must reflect the country’s unique realities, aspirations, and strengths.
• By defining green manufacturing on its own terms, India can lay the foundation for resilient, inclusive, and globally competitive industrial growth.

Reference

The Hindu| Green Factory Standards of India.

Green Factory Standards for India

Why in News?

Recently there has been a demand to create green factory standards for India to make the manufacturing process more climate friendly.

What is the issue?

• Changing Global Sustainability Landscape – The global manufacturing ecosystem is undergoing a transformation driven by climate commitments, ESG (Environmental, Social, and Governance) norms, and carbon accountability.
• Today, supply chains are evaluated not just on cost and efficiency but also on their environmental footprint.
• Investors increasingly favor companies with credible sustainability disclosures, and global indices reward standardized certifications.
• Case in developed nations – In developed economies, green manufacturing achievements are often backed by widely recognized certifications, enabling industries to attract capital and enhance market credibility.
• In contrast, Indian manufacturing units, despite achieving comparable or even superior sustainability outcomes, often fail to receive similar recognition due to fragmented certification systems.
• This disparity highlights the importance of institutional frameworks in shaping global perception.
• India’s Industrial Growth and Climate Dilemma – India contributes approximately 7–8% of global greenhouse gas emissions while aiming to expand its manufacturing sector significantly over the next decade.
• With industrial output projected to grow rapidly, the country must decouple economic growth from environmental degradation.
• Dual obligation – This creates a structural dual mandate:
  • Accelerate industrialization to sustain economic growth and employment.
  • Reduce emissions intensity in line with global climate commitments.
• Achieving this balance requires a structured and context-sensitive framework tailored to India’s unique conditions.
• Challenges – Factors such as varying state-level energy tariffs, high levels of water stress across more than half of the country’s land area.
• The dominance of MSMEs (Micro, Small, and Medium Enterprises) make it impractical to replicate Western green manufacturing models.

What are the Existing Green Certification Ecosystem in India?

• Available  certifications – Several robust certification systems already exist, including:
  • Green building ratings
  • Energy efficiency programs
  • Industrial sustainability assessments
• These frameworks are scientifically sound and adapted to local conditions.
• Other initiatives – Measures such as rooftop solar adoption, waste heat recovery, and recycling practices are gaining momentum across manufacturing clusters.
• Issues with the existing measures – However, the issue lies in fragmentation.
• Multiple certifications operate independently without converging into a unified national standard.
• This leads to:
  • Lack of a single recognizable benchmark
  • Reduced global legibility
  • Difficulty in communicating sustainability achievements to international stakeholders
• The Certification Paradox – India faces a paradox where sustainability practices are advancing faster than their institutional recognition.
• Thousands of manufacturing units, especially among MSMEs, are adopting green practices such as renewable energy usage, water conservation, and waste management.
• Yet, these efforts often remain undervalued in global markets.
• The consequences:
  • Limited access to ESG-linked financing
  • Reduced export competitiveness
  • Inadequate integration into global green supply chains
• International investors and rating agencies often rely on familiar global standards, leading to under-recognition of India-specific certifications.
• This creates an uneven playing field despite genuine progress on the ground.

Why India Needs Its Own Green Factory Framework

• Contextual Relevance – India’s environmental and economic conditions differ significantly from developed nations. A domestic framework can account for:
  • Water scarcity challenges
  • Energy cost variability
  • MSME constraints
  • Regional climatic diversity
• Enhanced Global Competitiveness – A unified certification can act as a credible signal to global investors and supply chains, improving India’s position as a sustainable manufacturing hub.
• MSME Inclusion – With MSMEs contributing over 30% of GDP and employing millions, any sustainability framework must be scalable and accessible.
• A tailored system can ensure inclusivity rather than exclusion.
• Capital Attraction – Clear and standardized sustainability metrics can help industries attract ESG-focused investments, which are increasingly shaping global capital flows.
• Policy Alignment – Such a framework can integrate seamlessly with national initiatives like production-linked incentives (PLI) and sustainability disclosure requirements, ensuring coherence across policies.

What are the Key Components of an Indian Green Factory Standard?

• Energy Efficiency and Renewable Adoption – Measurement of energy consumption intensity.
• Integration of renewable sources such as rooftop solar.
• Incentives for energy optimization technologies.
• Water Stewardship – Efficient water usage practices.
• Recycling and reuse systems.
• Adaptation strategies for water-stressed regions.
• Waste and Circular Economy Practices – Waste reduction and recycling
• Industrial symbiosis.
• Resource recovery mechanisms.
• Carbon Footprint Reduction – Emissions tracking and reporting.
• Transition pathways toward net-zero goals.
• Digital and Technological Integration – Use of smart monitoring systems.
• Data-driven sustainability reporting.
• Financial and Market Linkages – Alignment with ESG reporting standards.
• Facilitation of green financing opportunities.
• MSME Scalability – Simplified compliance mechanisms.
• Tiered certification levels to encourage gradual adoption.
• Linking Sustainability with Strategic Growth – Sustainability is no longer a peripheral concern, it is central to industrial strategy.
• A well-defined green factory framework can:
  • Strengthen India’s export competitiveness by aligning with global environmental standards.
  • Reduce long-term energy and operational risks.
  • Enhance resilience against climate-induced disruptions.
  • Improve brand value and global reputation.
• Moreover, integrating sustainability into industrial identity can position India as a preferred destination for low-carbon manufacturing, especially as global supply chains diversify.

What should be done?

• Policy Convergence – Collaboration between ministries, industry bodies, and regulatory agencies to create a unified framework.
• Global Alignment with Local Adaptation – Ensuring compatibility with international standards while retaining Indian specificity.
• Incentivization Mechanisms – Financial and regulatory incentives to encourage adoption, particularly among MSMEs.
• Capacity Building – Training and awareness programs to facilitate implementation at scale.
• Robust Monitoring and Verification: Ensuring transparency and credibility in certification processes.

What lies ahead?

• India’s journey toward becoming a global manufacturing powerhouse cannot be divorced from sustainability imperatives.
• While industries are increasingly adopting green practices, the absence of a unified and globally recognized certification system undermines their potential impact.
• Defining an Indian green factory standard is not merely an environmental necessity but an economic imperative.
• It will enable the country to communicate its sustainability achievements effectively, attract global capital, and integrate seamlessly into future-ready supply chains.
• An Indian green factory does not need to mirror Western models to be considered sustainable.
• Instead, it must reflect the country’s unique realities, aspirations, and strengths.
• By defining green manufacturing on its own terms, India can lay the foundation for resilient, inclusive, and globally competitive industrial growth.

Reference

The Hindu| Green Factory Standards of India.

Gaganyaan Mission – Second Integrated Air Drop Test (IADT-02)

Why in News?

Recently, ISRO successfully conducted the second Integrated Air Drop Test (IADT-02) for India’s first human spaceflight mission.

• Mission Name – Gaganyaan
• Aim – To demonstrate India’s capability to send humans to space and bring them back safely.
• Crew – 3 Vyomnauts (space sailors) to Low Earth Orbit (LEO) at 400 km altitude.
• Mission Duration – 3 days.
• Return – Safe splashdown in the Indian Ocean.
• Launch Vehicle – Human-rated GSLV Mk III (HLV), renamed LVM3.
• Launch Site – Satish Dhawan Space Centre, Sriharikota.
• Planned Timeline – Early 2027.
• India will join the US, Russia, and China as nations with human spaceflight capability.
• Orbital Module (OM) – It is the spacecraft that will orbit Earth in the Gaganyaan mission.
• It has 2 main parts.
  •  Crew Module (CM) – Astronauts’ living capsule, survives re-entry.
  • Habitable space with Earth-like environment, double-walled with Thermal Protection System (TPS), houses crew interfaces, life support, avionics, and deceleration systems.
  • Service Module (SM) – Provides propulsion, power, thermal management, and avionics support.
• Test Procedure – Lifted by an Indian Air Force Chinook helicopter to 3 km altitude and released over a designated drop zone in the sea near Sriharikota coast.
• Parachute Deployment – 10 parachutes of 4 types deployed in sequence to reduce velocity for safe touchdown.
• Recovery – Coordinated successfully with the Indian Navy.

Human Space Flight Centre (HSFC)

• HSFC – It is the lead division of the ISRO responsible for implementing the Indian Human Spaceflight Programme, specifically the Gaganyaan mission.
• Mission led – Primary hub managing the Gaganyaan project for crewed orbital flight.
• Crew Management – Handles astronaut selection, health monitoring, and training in Bengaluru.
• Life Support – Develops ECLSS technology to provide air, water, and pressure in space.
• Safety Testing – Manages the Vyommitra humanoid robot to test systems before human flight.
• Future Vision – Leads planning for the Indian Space Station and crewed lunar missions.
• Agencies Involved
  • ISRO – Mission lead.
  • Indian Air Force – Helicopter support.
  • Indian Navy – Recovery operations.
  • DRDO – Technical support.

References

1. ISRO | Gaganyaan
2. The Hindu | Gaganyaan

Emperor Penguin

Why in News?

The International Union for Conservation of Nature (IUCN) has listed the Emperor Penguin as an Endangered Species.

• Common Name – Emperor Penguin
• Scientific Name – Aptenodytes forsteri
• Genus – Aptenodytes
• Kingdom – Animalia
• Family – Spheniscidae
• Habitat – Native to Antarctica.
• They are dependent on sea ice platforms for breeding, moulting, and chick rearing.
• Distribution – Closely tied to the extent and stability of Antarctic Sea ice.
• Morphology – Largest and heaviest of all penguin species.
  • Height – up to 120 cm.
  • Weight – 20–40 kg.
  • Distinctive golden-orange streak on neck and chest.

• Diet – Primarily fish, squid, and krill.
• Sentinel Species – Emperor penguins are considered sentinel species, their decline signals broader ecological impacts of climate change on Antarctic ecosystems.
• Their survival is directly linked to greenhouse gas emissions and global warming trends.
• Conservation Status
  • IUCN Red List – Endangered
  • CITES – Appendix I (trade strictly regulated).
• Threats
  • Climate change – Shrinking and unstable sea ice.
  • Early break-up of breeding platforms.
  • Decline in food availability (krill moving deeper).

Quick Facts

Reference

The Hindu | Emperor Penguins

Plurilateralism in Global Trade

Why in News?

The 14th Ministerial Conference (MC14) of the WTO, held in March 2026, highlighted a deep divide between multilateralism (consensus-based) and plurilateralism (coalition-based).

Cause - The shift is driven by the paralysis of the WTO's Appellate Body and the failure to resolve long-standing issues like agricultural subsidies.

Multilateralism: Agreements involving all members of an international organization (e.g., all 166 WTO members). Decisions require consensus, and the outcomes are binding on everyone.

Plurilateralism: Agreements negotiated by a subset of members (a "coalition of the willing"). These are legally binding only on the signatories.

Joint Statement Initiatives (JSIs): The modern vehicle for plurilateralism within the WTO, used to bypass the "consensus deadlock" on new-age issues like digital trade.

Plurilateral vs. Multilateral

Topic of Discussion at MC14 (2026):

Investment Facilitation for Development (IFD) Agreement

• What it is: A China-led plurilateral initiative backed by over 125 members to streamline bureaucratic hurdles for FDI.
• India’s Stance: Rejected its incorporation into the WTO framework at MC14.

The Investment Facilitation for Development (IFD) Agreement

It is a WTO plurilateral pact aimed at boosting global FDI by streamlining administrative procedures, enhancing regulatory transparency, and improving efficiency for sustainable investment

• Why India Rejected:  India argues investment is a "non-trade issue" and outside the WTO's mandate. It fears the "plurilateral route" creates a two-tier WTO that sidelines the Global South.

The E-Commerce Moratorium: Definition: A 1998 agreement to not impose customs duties on electronic transmissions (software, music, data).

• Current Status: The moratorium expired on March 31, 2026, after years of pressure from India and South Africa.
• Impact: Countries have now the legal right to tax digital downloads and streaming services, though many are wary of retaliatory tariffs.

India's Strategic "Red Lines"

• Public Stockholding (PSH): India refuses to move on new plurilateral issues until a permanent solution is found for food security subsidies (to protect the MSP regime).
• Dispute Settlement Reform: India demands the restoration of the Appellate Body, which has been defunct due to US blocking appointments since 2017.
• Sovereign Policy Space: India opposes rules that might restrict its ability to regulate data (Data Localization) or provide domestic subsidies.