Inclusive Finance
- FI-Index Improvement: India’s Financial Inclusion Index rose to 67 in March 2025 from 64.2 in March 2024, indicating progress.
- Why in News: The recent release of the RBI’s FI-Index for FY 2025 and its improved score is the primary news driver.
- Drivers of Improvement: The increase is attributed to enhanced “usage” and “quality” dimensions of financial inclusion, reflecting sustained financial literacy efforts.
- FI-Index Explained: It’s a composite score from 0-100 measuring financial inclusion across banking, investments, insurance, postal, and pension sectors.
- Parameters: Access (35%), Usage (45%), Quality (20%).
- Quality: Includes financial literacy, consumer protection, and service quality.
- Financial Inclusion Definition: Ensuring vulnerable groups access affordable, timely financial services, including banking, insurance, and equity products.
- SDG Link: Financial inclusion is crucial for 7 out of 17 Sustainable Development Goals, boosting growth, jobs, and poverty reduction. It empowers women and builds climate resilience.
- Key Government Initiatives:
- PMJDY: Provides basic banking, insurance, pension, and credit access with no charges and free RuPay debit cards.
- Digital India: Promotes digital literacy and services like UPI, BHIM app, making India a digitally empowered society. UPI is the world’s leading real-time payment system.
- JAM Trinity (Jan Dhan, Aadhaar, Mobile): Facilitates Direct Benefit Transfers and easy bank account opening.
- PMJJBY & PMSBY: Affordable life and accident insurance schemes.
- Atal Pension Yojana: Aims to provide pension security to unorganized sector workers.
- Telecom Survey Findings: Significant increase in online banking access in rural areas, especially among young women, with their ability to conduct online banking transactions more than doubling.
- Key Challenges: Low financial awareness, weak infrastructure, digital gaps, high delivery costs, lack of trust, language barriers, gender gaps, reliance on cash, dormant accounts, limited credit access, and complex regulations.
- Meaningful Participation: Financial inclusion goes beyond just opening accounts; it requires active and beneficial participation in the economy.

NEP
- School Curriculum Revamp: 10+2 replaced by 5+3+3+4. NCERT books focus on experiential learning.
- Why news: Major structural change aimed at improving learning.
- Early Childhood Education & Foundational Learning: Strengthening pre-primary with resources like ‘Jaadui Pitara’ and NIPUN Bharat for reading/math skills by Class 3.
- Why news: Focus on foundational skills is crucial for future academic success.
- Academic Credit System & CUET: National Credit Framework for flexible credit transfer. CUET implemented for undergraduate admissions.
- Why news: Streamlines higher education access and pathways.
- Indian Campuses Abroad & Foreign Universities in India: IITs/IIMs expanding globally, foreign universities entering India.
- Why news: Globalization of Indian higher education.
- Board Exam Changes (2026): CBSE to allow subject choice and twice-yearly board exams for Class 10.
- Why news: Offers flexibility and reduces exam stress.
- Holistic Report Cards: PARAKH developing assessments with self-evaluation and skills.
- Why news: Moves beyond rote learning to assess broader competencies.
- Four-Year UG Degrees: Rollout facing infrastructure challenges.
- Why news: Implementation hurdles affect a significant higher education reform.
- Three-Language Formula: Remains controversial due to state opposition (e.g., Tamil Nadu on Hindi).
- Why news: Highlights centre-state friction on language policy.
- Teacher Education Overhaul: 4-year integrated B.Ed. announced but not implemented.
- Why news: Delays in improving teacher quality.
- UGC Replacement Delayed: HECI bill pending.
- Why news: Affects the restructuring of higher education governance.
- Mother Tongue in Schools: Partial implementation from pre-primary to Class 5.
- Why news: Uneven progress on a key NEP principle.
- No School Breakfast: Financial Ministry rejected the proposal.
- Why news: A welfare initiative for students faces funding rejection.
- Centre-State Divide: States like Kerala, Tamil Nadu, West Bengal resist reforms.
- Why news: Indicates significant implementation challenges due to federal disagreements.
Textile Sector
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Low Wages & Women’s Participation: A significant barrier for women entering formal employment in the textile sector is low pay, with 54% unhappy and 80% earning under ₹20,000/month. High costs like transport and childcare also force women out of the workforce. This contributes to a low female labour force participation rate (32%).
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Govt’s ‘Living Wage’ Initiative: The Ministry of Labour and Employment is developing a “living wage” concept, which goes beyond minimum wage to include housing, education, healthcare, and nutrition. This is aimed at improving women’s quality of life and encouraging their workforce participation.
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Survey Highlights Dissatisfaction: A survey of over 10,000 women, particularly in manufacturing, revealed widespread dissatisfaction with current income levels, underscoring the need for better wages.
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Other Hindrances for Women: Besides inadequate income, women’s participation is also hampered by a lack of childcare, safety concerns, transport issues, and unsuitable job timings.
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Policy Focus & Dialogue: The “living wage” is intended to be state-specific. A key policy direction is to foster “social dialogue” between employers and employees to address these issues.
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Wage Types in Context: Understanding wage structures is crucial, with distinctions between Minimum Wage (legally enforced lowest pay), Fair Wage (balancing worker needs and industry capacity), and the proposed Living Wage (covering comprehensive needs for quality of life).
Case Backlog & Justice
- Massive Case Pendency: Over 5 crore cases are pending across Indian courts, highlighting a severe backlog and a challenge to timely justice delivery.
- Why it’s news: This directly impacts citizens’ ability to access justice, a fundamental right.
- Low Judge-to-Population Ratio: India has significantly fewer judges per capita compared to global standards, and a substantial percentage of sanctioned judicial posts remain vacant.
- Why it’s news: This is a core structural reason for delays, impacting the judiciary’s capacity.
- Infrastructure and HR Deficiencies: Many courts lack adequate infrastructure, trained staff, and modern digital management systems.
- Why it’s news: Poor infrastructure and staff shortages directly contribute to inefficiency and prolong case durations.
- Procedural and Administrative Inefficiencies: Issues like frequent adjournments, inefficient case management, and the dominance of manual processes hinder speedy disposal.
- Why it’s news: These are practical bottlenecks that lawyers, litigants, and judges face daily, causing frustration and delays.
- High Litigation Volume: A rising number of cases, including those filed by the government and frivolous litigations, overwhelm the system.
- Why it’s news: The sheer volume of cases, often unnecessarily, exacerbates the existing problem.
- Impact on Justice and Rights: Pendency infringes upon the fundamental right to a speedy trial (Article 21), leads to prolonged detention of undertrials, and erodes public trust.
- Why it’s news: This underscores the human and societal cost of judicial delays.
- Key Reforms Needed: Solutions include increasing judicial capacity (filling vacancies, fast-track courts), improving court administration, leveraging technology (AI, digital courts), and promoting Alternative Dispute Resolution (ADR).
- Why it’s news: These are actionable steps that can address the deep-rooted problem of pendency and improve access to justice.
- Lok Adalats Success: These alternative forums have proven effective in resolving a large number of cases, demonstrating the potential of out-of-court settlements.
- Why it’s news: Highlights a successful, practical measure that can be scaled up to alleviate court burdens.
Tiger Day 2025
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Why in News? International Tiger Day 2025, on July 29th, aims to raise global awareness for tiger conservation, particularly highlighting the Amur tiger, the world’s largest wild cat.
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India’s Conservation Contribution:
- Project Tiger: Launched in 1973 to address a drastic decline in tiger numbers (from 1 lakh in the early 1900s to 1,827 in 1972).
- Aim: Ensure a viable Bengal tiger population in natural habitats.
- Methods: Establishment of tiger reserves with core-buffer zones and oversight by the National Tiger Conservation Authority (NTCA).
- Progress: Expanded from 9 reserves to over 50, covering 2.2% of India’s land. Tiger numbers have risen to an estimated 3,682 (as of 2022 data).
- Global Significance: India now hosts around 75% of the world’s tiger population, with a significant growth rate.
- Project Integration: Project Tiger and Project Elephant merged into “Project Tiger & Elephant” from FY 2023-24.
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Global Context of International Tiger Day:
- Origin: Established in 2010 at the Saint Petersburg Tiger Summit to combat alarming tiger population decline.
- “Tx2” Goal: Aimed to double tiger populations globally by 2022 through international collaboration.
- Purpose: Raise awareness about threats like habitat loss, poaching, and human-wildlife conflict, inspiring collective action.
- Celebration: Marked globally with educational programs, media campaigns, and conservation activities.
Cotton Boost
- Why in News: Launched to strengthen India’s textile value chain and enhance global competitiveness, aligning with Textile Vision 2030.
- What is the Mission: A five-year initiative to boost cotton production, providing scientific and technological support to farmers.
- Nodal Agency: Department of Agricultural Research & Education (DARE), with Ministry of Textiles as partner.
- Key Objectives: Enhance productivity via climate-smart, pest-resistant, high-yielding varieties (including ELS cotton), improve fiber quality using advanced breeding/biotech, and build farmer resilience.
- Reasons for Mission:
- Low Productivity: India leads in acreage but ranks 39th globally in yield.
- Import Dependence: Cotton imports have significantly increased.
- Stagnation: Lack of new GM cotton variants since 2006.
- Infestation: Increased pink bollworm resistance to Bt cotton.
- Missed Opportunities: Competitors like the US and Brazil are gaining ground.
- Alignment: Supports the Government’s 5F vision (Farm to Fibre to Factory to Fashion to Foreign).
- Special Project: ICAR-CICR implementing a project to demonstrate best practices and enhance ELS cotton production.
- Expected Outcomes: Boost farmer incomes, ensure quality cotton supply, revitalize the textile sector, and enhance global competitiveness.
Veer Sahayata 2025
- Scheme Name: Veer Parivar Sahayata Yojana 2025.
- Launched By: National Legal Services Authority (NALSA).
- Target Beneficiaries: Soldiers, veterans, and their dependents.
- Objective: To provide free legal aid, advice, and support to army and paramilitary personnel and their families, addressing service-related constraints.
- Key Features:
- Online application filing.
- Video consultations.
- Dispute resolution via e-Lok Adalats and online mediation.
- Coverage: Nationwide, across all Indian states.
- Constitutional Basis: Article 39A of the Constitution (ensuring equal justice and legal aid).
- Infrastructure: NALSA will establish legal aid clinics at district, state, and national levels.
- NALSA’s Role: A statutory body established in 1995 to monitor and evaluate legal aid programs for various eligible groups.
- Launch Event: Launched in Srinagar by NALSA led by Justice Surya Kant, along with J&K Lt Governor Manoj Sinha and Union Law Minister Arjun Ram Meghwal.
HW Test Facility
- India’s First Private Heavy Water Upgrade Facility Inaugurated: Located in Palghar, Maharashtra, this facility marks a significant step in private sector involvement in critical nuclear infrastructure.
- Why it’s news: It signifies a shift from solely government-run facilities (BARC) to private sector participation, boosting efficiency.
- Enhances Depleted Heavy Water Purity: The facility tests equipment to upgrade depleted heavy water (D₂O) to the required 99.9% purity for Pressurised Heavy Water Reactors (PHWRs).
- Why it’s news: High purity is essential for efficient nuclear reactions, and upgrading ensures reactor effectiveness.
- Reduces Upgrade Time Significantly: By allowing private testing, the process is expected to be cut by at least two years compared to the previous in-house BARC testing.
- Why it’s news: Time savings are crucial for maintaining operational readiness of nuclear power plants and accelerating expansion plans.
- Supports Nuclear Capacity Goals: The project directly contributes to India’s ambitious target of achieving 100 GW nuclear capacity by 2047.
- Why it’s news: Demonstrates tangible progress towards national energy security and expansion of nuclear power.
- Private Firm (TEMA India) Involved: TEMA India will manufacture parts for distillation and ensure quality before deployment, including dispatching components for RAPP-8.
- Why it’s news: Highlights the growing role of private Indian companies in the strategic nuclear sector.
- Heavy Water (D₂O) Explained: A moderator and coolant in PHWRs, it’s dense, non-radioactive water where hydrogen is replaced by deuterium.
- Why it’s news: Provides context on the importance and function of the upgraded material within the nuclear process.
Chola’s Sea Reign
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Why in News: PM Modi visited Gangaikonda Cholapuram during the Aadi Thiruvathirai festival, highlighting the Chola Empire’s maritime expedition and releasing a commemorative coin for Rajendra Chola I’s 1000th year of Gangetic expedition. The festival also marked 1,000 years of Rajendra Chola I’s Southeast Asian maritime expedition.
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Rajendra Chola I’s Significance:
- Ruled 1014-1044 AD, son of Rajaraja Chola I.
- First Indian king to lead overseas military expeditions, extending influence across South and Southeast Asia.
- Assumed titles like Gangaikonda Cholan and Kadaram Kondan.
- Founded Gangaikondacholapuram as his capital.
- Built the Brihadisvara Temple (Gangaikondacholeeswaram) and Chola Gangam Lake.
- Possessed a powerful navy, securing dominance in the Bay of Bengal and influence in Southeast Asia.
- Promoted trade with China and Southeast Asia through merchant guilds.
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Chola Administration & Architecture:
- Centralised monarchy with strong local self-governance, including village assemblies (Sabhas/Urs).
- Used a Kudavolai system (palm-leaf ballot) for transparent village elections.
- Dravidian temple architecture reached its peak, featuring impressive Vimanas and intricate sculptures.
- Famous for bronze sculptures, notably the Nataraja.
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Political Context: The visit and commemoration of Chola achievements are also seen in the context of upcoming Tamil Nadu polls, with the BJP seeking to gain influence and Chief Minister MK Stalin promoting Dravida pride. The Chola Empire is presented as a symbol of Hindu and Dravida power.
Vihear & Thom
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Ceasefire Agreement: Thailand and Cambodia have agreed to a ceasefire after clashes occurred near the Preah Vihear and Prasat Ta Muen Thom temple complexes.
- Why in News: This marks an attempt to de-escalate significant military confrontations along their shared border.
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Border Disputes: The conflict stems from long-standing territorial disagreements, exacerbated by colonial-era border demarcations and competing cultural claims.
- Why in News: These historical claims are actively used by political elites in both nations to foster nationalism and bolster domestic support, making border skirmishes volatile.
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Preah Vihear Temple: This 11th-century Hindu shrine, a UNESCO World Heritage Site, is located in Cambodia near the Thai border.
- Why in News: The International Court of Justice (ICJ) has ruled that the temple belongs to Cambodia (1962, reaffirmed 2013), but Thailand disputes the ICJ’s jurisdiction, keeping tensions alive. Recent Cambodian efforts to list it as a UNESCO site in 2008 reignited conflict.
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Prasat Ta Muen Thom: This 12th-century temple complex, with Hindu and later Buddhist significance, is also a flashpoint for conflict.
- Why in News: Fighting occurred at this site during recent hostilities, highlighting its role in the broader border dispute and cultural ownership claims.
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Escalation of Tensions: Tensions simmered since May with skirmishes, a Cambodian soldier’s death, nationalist rhetoric, and reciprocal diplomatic actions like expulsions and bans.
- Why in News: The conflict escalated to air strikes by Thailand and rocket/artillery fire from Cambodia, resulting in casualties and significant civilian displacement.
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External Pressure for Ceasefire: International pressure, notably from China and the United States, played a role in facilitating the ceasefire talks.
- Why in News: US President Donald Trump reportedly made the ceasefire a precondition for trade talks, indicating external actors’ interest in regional stability.
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Underlying Issues Unresolved: The ceasefire does not address the fundamental issues of cultural inheritance and ownership disputes.
- Why in News: Analysts expect an uneasy peace, as deep-seated historical and cultural claims require more substantial resolution to achieve lasting stability.
India’s Hydrogen Train
- First Hydrogen-Powered Coach Tested: Indian Railways successfully tested its first hydrogen-powered coach at ICF, Chennai, under the “Hydrogen for Heritage” initiative.
- Project Details: Two 1600 HP diesel power cars are being converted into Hydrogen Fuel Cell systems. A 3,000 kg hydrogen refuelling station is being set up at Jind, Haryana. The project began in 2020-21 and costs approximately Rs. 136 crore.
- “Why in News”: This test signifies a significant step for Indian Railways towards adopting cleaner, sustainable energy sources for its operations, aiming to decarbonize the railway sector.
- Key Benefits of Hydrogen:
- Zero Emission: Emits only water vapor when used in fuel cells.
- High Energy Density: Suitable for heavy-duty transportation.
- Renewable Energy Integration: Acts as an energy storage vector for intermittent renewable sources.
- Decarbonization: Helps decarbonize hard-to-abate sectors.
- Operational Plan: The train is planned to operate between Jind and Sonepat stations in Haryana, covering two round-trips of 356 km.
- Technology and Safety: Each power car will carry 220 kg of hydrogen stored in cylinders. Extensive testing of equipment and safety features like leak detection, flame detection, and ventilation are in place. A German third-party auditor (TUV-SUD) is involved to ensure safety standards.
- Hydrogen Fuelling Facility: The Jind facility will have a storage capacity of 3,000 kg, divided into low and high-pressure storage, and will be operated according to PESO standards.
India’s H.W. Test Hub
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India’s First Private Heavy Water Test Facility Launched: TEMA India has opened the nation’s inaugural private facility for testing heavy water upgrade equipment.
- Why it’s news: This marks a significant step in public-private collaboration within India’s nuclear sector, moving a critical testing function from a government institution (BARC) to the private domain.
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Streamlining Heavy Water Upgrading: The facility will manufacture and test distillation columns used to restore the purity of depleted heavy water (D₂O).
- Why it’s news: This process is essential for maintaining efficient performance of Pressurised Heavy Water Reactors (PHWRs), India’s primary nuclear reactor type.
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Reduced Project Timelines: The private facility is expected to cut the time for upgrading heavy water equipment by 1-2 years.
- Why it’s news: Previously, BARC handled the testing after equipment was manufactured by various vendors, a process that could take 7-8 years. The new integrated approach will significantly expedite the process.
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Technology Transfer and Collaboration: The facility was designed and built by TEMA India under technology transfer from BARC and with a purchase order from Nuclear Power Corporation of India Ltd (NPCIL).
- Why it’s news: This highlights a direct collaboration between government research bodies and private industry, leveraging existing expertise for national development.
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Supporting India’s Nuclear Expansion: TEMA India has already dispatched its first batch of tested equipment for the Rawatbhata Nuclear Power Plant and will supply for upcoming reactors in Gorakhpur and Kaiga.
- Why it’s news: This directly supports India’s ambitious nuclear energy expansion plans, aiming for 22.4 GW by 2032 and 100 GW by 2047, as the nuclear sector grows rapidly.
Golden Jackals
- Adaptability to Human Landscapes: Golden jackals are thriving beyond traditional forests in Kerala, inhabiting agricultural lands, village edges, and peri-urban areas.
- Why it’s news: This shows a significant shift in their habitat preference, moving into human-dominated zones.
- Exploitation of Human-Derived Food Sources: They are utilizing waste and livestock carrion, demonstrating a flexible diet and strong scavenging skills.
- Why it’s news: This highlights their opportunistic nature and ability to capitalize on human activity for survival.
- Ecological Plasticity: This adaptability allows them to cope with habitat fragmentation and loss.
- Why it’s news: It explains their success in a changing environment.
- Raised Concerns: Their increasing presence near human settlements raises worries about potential conflicts and disease transmission.
- Why it’s news: This points to emerging challenges for both wildlife and humans.
- Need for Management: Effective management of human-wildlife interactions is crucial due to these concerns.
- Why it’s news: This emphasizes the practical implications of the jackals’ adaptation.
India’s Ethanol Leap
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Milestone Achieved: India has reached 20% ethanol blending in petrol (E20) ahead of its 2025-26 target.
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Why in News: This signifies India’s strong commitment to energy security, boosting rural incomes, and environmental sustainability.
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Policy and Regulation:
- National Policy on Biofuels (2018, amended 2022) accelerated the E20 target.
- Flexibility in feedstock (sugarcane, corn, residues, waste) ensures stable supply.
- Pradhan Mantri JI-VAN Yojana promotes advanced biofuels.
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Infrastructure and Pricing:
- Ethanol Interest Subvention Schemes supported plant setup.
- Long-Term Offtake Agreements provided market stability.
- Administered pricing and GST reduction incentivized production.
- Easier interstate movement of ethanol facilitated by law amendments.
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Socio-Economic Impacts:
- Enhanced farmer and distillery incomes, boosted rural employment.
- Saved Rs 1.36 lakh crore in foreign exchange by reducing crude oil imports.
- Promoted ‘Make in India’ and self-reliance in energy.
- Stabilized farm gate prices and encouraged crop diversification.
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Environmental Impacts:
- Avoided ~700 lakh tonnes of CO₂ emissions, aiding climate goals.
- Reduced vehicular emissions like carbon monoxide and hydrocarbons.
- Lowered urban air pollution due to more complete fuel burning.
- Utilized waste materials, reducing landfill burden and methane.
Monsoon
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India’s Southwest Monsoon Strong Overall: As of July 28, 2025, India has recorded 8% above-normal rainfall (440.1 mm) for the monsoon season. This indicates a generally favorable start.
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Regional Disparities Exist: While most regions are experiencing normal or above-normal rainfall, East and Northeast India are facing a significant deficit of 23%.
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Specific Deficit Areas: Punjab, Bihar, Sikkim, Manipur, Arunachal Pradesh, and Meghalaya are highlighted as states with persistent rain deficiency.
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July is Crucial and Performing Well: July, the most important month for monsoon rainfall, has so far seen 5.4% above-normal rainfall.
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Low-Pressure Systems Aiding Rainfall: The occurrence of back-to-back low-pressure systems and depressions over the Bay of Bengal has been instrumental in sustaining rainfall across much of the country.
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Monsoon’s Significance for India: Monsoons are vital for India’s agriculture (supporting crops like rice), water resources (replenishing water bodies), and the economy (impacting rural demand and food security).
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Monsoon Variability and Challenges: Factors like El Niño/La Niña and climate change contribute to the unpredictability of monsoon behavior, leading to potential floods or droughts and impacting sowing cycles.
