Global Capability Centres (GCCs)

Context: Recently, the Union Finance Minister at Confederation of Indian Industry’s (CII’s) event said  that the Global Capability Center (GCC) holds a huge opportunity in India.

About Global Capability Center (GCC)

• Refers: A strategic unit that supports an organization’s global operations through technology, talent, and innovation.
• Owned Offshore Unit: Multinational Corporation (MNC) wholly-owned, integrated extension in another country.
• Functions: IT, engineering, R&D, finance, HR, data analytics, product development.
• Evolution: From cost-saving (back-office) to strategic (innovation, R&D).

India’s Emergence as a Global GCC Hub

• Nearly 50% of Fortune 500 companies have established their GCCs in India.
• India’s GCC workforce currently employs around 2.16 million professionals.
• GCC employment is expected to rise to 2.8 million by 2030.
• The GCC sector in India has grown at a CAGR of 11% over the past five years.
• India hosts 32% of the world’s GCC talent pool.
  • 42.7% of STEM graduates in India are female, among the highest globally
  • Women constitute ~35% of India’s GCC workforce
• GCCs contribute $68 billion in Gross Value Addition (GVA), about 1.6% of India’s GDP.
• By 2030, GCCs in India could contribute $150–200 billion to the economy.

India’s Competitive Edge

• Cost Efficiency: Operating GCCs in India costs 30–50% less than in the US, UK, or Australia.
• Digital and Policy Readiness: The Government of India is providing policy and infrastructural support to expand GCC presence with initiatives like Smart Cities, and Digital India.
• Abundant Skilled and English-proficient Workforce: India contributes 28% to the global STEM workforce
  • 23% of global software engineering talent is based in India
• Access to a vast consumer market
• Global leadership Roles: GCCs are set to grow from 6,500 to over 30,000 by 2030.
  • On average, 1 new GCC was established per week in 2024.

Key Benefits

• Talent Access: Taps skilled, scalable global talent pools.
• Cost Efficiency: Lower operational and labor costs.
• Innovation Hub: Drives new products, services, and digital transformation.
• Control: Full ownership ensures intellectual property (IP) and strategic alignment.
• Scalability: Rapidly expands/contracts operations.
• Risk Mitigation: Diversifies operations, enhances business continuity.

PM Professorships Scheme

Context: The Anusandhan National Research Foundation (ANRF) has launched the Prime Minister Professorship Scheme to leverage the expertise of retired scientists and professionals to bolster research ecosystems, especially in State universities with limited R&D capacity.

About the PM Professorship Scheme

• Objective: To tap into the experience of superannuated scientists, industry experts, and Professors of Practice to mentor and strengthen research in emerging institutions.
• Administering Body: ANRF, India’s new apex body for research funding, replacing the Science and Engineering Research Board (SERB).
• Key Features:
  • Fellowship: ₹30 lakh per annum
  • Research Grant: ₹24 lakh per annum (for equipment, consumables, travel, etc.)
  • Institutional Overhead: ₹1 lakh annually
  • Tenure: Up to 5 years (performance-based)
  • Eligibility:
    • Retired scientists from reputed national/international institutions
    • Industry professionals & Professors of Practice with a strong research record
    • NRIs, PIOs, and OCIs are also eligible
  • Requirement: Full-time relocation to the host State university (no dual honorarium)
• Comparison with Earlier Scheme: Replaces the SERB Distinguished Fellowship, which offered lower fellowship (₹60,000/month) and a ₹20 lakh annual research grant.
• Implementation via the PAIR Programme: The scheme is embedded within ANRF’s Promoting Advanced and Inclusive Research (PAIR) initiative that uses a hub-and-spoke model to link elite institutions with emerging ones.
• Model Structure:
  • Hub Institutions: Ranked within the top 25 of NIRF or classified as Institutions of National Importance
    • Mentor up to seven spoke institutions
  • Spoke Institutions (Category A): State universities, select Central Universities, NITs, and IIITs
    • Must form multi-departmental faculty teams and ensure regional diversity
  • Professor’s Role at Spoke Institutions
    • Mentor faculty and students in research design and innovation
    • Facilitate industry and institutional collaborations
    • Promote interdisciplinary and globally competitive research
    • Guide infrastructure development and research facility setup
    • Enable internships at leading institutions

Significance and Impact

• Bridges research gaps in under-resourced universities
• Strengthens India’s R&D ecosystem by decentralizing excellence
• Encourages international scientific participation through diaspora inclusion
• Fosters a culture of mentorship, collaboration, and innovation in state institutions

AI Appreciation Day

Context: July 16, 2025 is AI Appreciation Day, celebrating India’s rising global AI presence. From cities to villages, AI is revolutionizing healthcare, education, agriculture, governance, and industry.

• AI Appreciation Day was founded in May 2021 by A.I. Heart LLC to honor the positive impact of artificial intelligence.

India’s AI Journey: A Strategic Evolution

• Vision & Strategy: India’s “AI for All” vision and the National Strategy for AI emphasize leveraging AI not just for economic prosperity but also for improving lives, fostering inclusion, and promoting equity.
• Historical Milestones:
  • 1960s: Early computer science research marks the beginning.
  • 1986: Launch of the Knowledge-Based Computer Systems project.
  • 1990s: Organizations like C-DAC advance supercomputing and early AI work.
  • 2000s: Major IT companies (TCS, Infosys, Wipro) invest in AI, universities build talent.
  • 2015: Digital India initiative provides a significant push.
  • 2018: NITI Aayog’s AI strategy accelerates growth.
• India’s Growing Global AI Leadership- Key Strengths:
  • Exceptional software talent pool.
  • Access to large, diverse datasets for effective AI solution development.
  • Diverse national needs provide real-world testing grounds (e.g., farming, healthcare, traffic control, public services).

Government Initiatives for AI Growth

• Skill Development:
  • Skill India AI Portal.
  • National AI Skilling Programme.
  • AI Youth Bootcamp.
    • These initiatives offer training, certifications, and hands-on projects for students and workers, with vocational centers adopting AI tools for traditional industries.
• Research & Collaboration:
  • Investment in AI research through funding programs and new centers bridging academia and industry.
  • Partnerships with global tech giants (Google, Microsoft, IBM) to stay abreast of international developments.

Responsible AI: A Core Principle

• As India celebrates AI Appreciation Day, there’s also a significant focus on using AI responsibly and ethically. India’s approach to AI transcends mere technological advancement, aiming fundamentally to make a tangible difference in people’s lives.

Services exports cut India’s Trade Deficit by 9.4% in Q1

Context: India’s overall trade deficit saw a significant contraction of 9.4% to $20.3 billion in the first quarter (Q1) of the current financial year (April-June 2025). This positive development was primarily driven by a robust nearly 11% growth in services exports.

Overall Trade Performance (Q1 FY 2025-26)

• Total Exports: Grew by approximately 6% to $210.3 billion (up from $198.5 billion in Q1 FY 2024-25).
  • Both merchandise and services exports are in positive points, exceeding WTO’s world trade expectations.
  • WTO expected a -0.2% contraction in merchandise trade in 2025 – down from +2.9% in 2024 – followed by a 2.5% increase in 2026 reflecting weaker global demand.
• Total Imports: Grew 4.4% to $230.6 billion.
• Trade Deficit: Contracted by 9.4% to $20.3 billion.
• Services Exports: Rose nearly 11% to $98.1 billion (from $88.5 billion in Q1 FY 2024-25).
• Merchandise Exports: Grew modestly by 2% to $112.2 billion.
  • Reason for slowdown: Primarily attributed to falling petroleum prices.
  • Non-petroleum exports: Grew by a healthier 6% during this period.
• Previous Fiscal Year (FY 2024-25): India’s total exports achieved an all-time high of $825 billion.
• Merchandise Imports: Grew 4.2%.
• Services Imports: Grew 4.9%.

Sectoral Growth

• Exports:
  • Electronics: Highest growth, up 47.1% to $12.4 billion.
  • Marine Products: Grew over 19% to $1.9 billion.
  • Tobacco: Around 19% double-digit growth.
  • Tea: Around 16% double-digit growth.
• Imports:
  • Sulphur and unroasted iron pyrites: Highest growth, 284%.
  • Silver: Grew 216%.
  • Chemical materials and products: Grew 142%.
  • Raw and waste cotton: Grew 73%.

Top Trading Partners (Q1 FY 2025-26)

• Top Export Destinations:
  1. United States: $25.5 billion (up 22.1%)
  2. United Arab Emirates: $9.04 billion
  3. Netherlands: $5.65 billion
  4. China: $4.4 billion
  5. United Kingdom: $3.3 billion
• Top Import Sources:
  1. China: $29.7 billion (up 16%)
  2. UAE: $16.8 billion
  3. Russia: $16.77 billion
  4. U.S.: $12.86 billion
  5. Iraq: $7.26 billion

Furlough and Parole

Context: Recently, the Delhi High Court clarified that furlough and parole can be considered even if a convict’s appeal is pending before the Supreme Court, ending previous legal ambiguities.

What are Furloughs? 

• Furlough is a temporary release of a prisoner without suspending the sentence, primarily to reduce the adverse psychological effects of long-term imprisonment and to maintain social and family ties.
• Legal Provisions: Furlough is governed by The Prisons Act, 1894 and detailed through state-specific prison rules. It is granted at the discretion of prison authorities, typically by the Deputy Inspector General of Prisons.
• Conditions for Grant: Furlough may be granted to long-term convicts with good conduct, usually after serving a minimum period of their sentence. No specific reason is required, but it can be denied if deemed against public interest

How Furlough Differs from Parole?

• Purpose and Nature of Release: Furlough is aimed at breaking the monotony of jail life and is treated as a remission of sentence.
  • Parole, on the other hand, is granted for specific exigencies such as illness, death in the family, or court appearances, and involves suspension of sentence.
• Right vs. Discretion: Furlough is considered a privilege for eligible prisoners based on conduct and cannot be claimed as a matter of right.
  • Parole is also not a right, but more readily granted in genuine emergencies and can be challenged in higher courts if denied.

This judgment reinforces the discretionary yet humanitarian role of furlough and parole in prison administration, while ensuring they remain subject to judicial oversight and factual scrutiny.

E10 Shinkansen

Context: Recently Japan has  agreed to provide E10 Shinkansen trains on the Mumbai-Ahmedabad corridor.

• The first section of the 21 km undersea tunnel between Ghansoli and Shilphata for the Mumbai–Ahmedabad bullet train project has been completed, marking a significant step in India’s first high-speed rail corridor.

About E10 Shinkansen

• The E10 Shinkansen, Japan’s next-generation bullet train model, will debut simultaneously in India and Japan, symbolizing deepening technological collaboration between the two countries.
• E10 is the successor to the E5 Shinkansen and features advanced aerodynamics, energy efficiency, and enhanced passenger comfort.
• Developed by: East Japan Railway Company (JR East)
• Unique Features: It reflects Japan’s latest innovations in speed, safety, and reliability, tailored for high-speed rail corridors.
  • Blowerless Induction Motor: Uses no cooling motor, making it quieter and energy-efficient.
  • L-Shaped Vehicle Guides: Designed to prevent derailment during earthquakes, enhancing seismic resilience.

Significance of E10 Shinkansen for India

• Modernizing Indian Rail Infrastructure: The 508 km Mumbai–Ahmedabad High-Speed Rail (MAHSR) corridor, powered entirely by Japanese Shinkansen technology, represents a major leap in infrastructure modernization.

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