NITI Aayog’s Water Budgeting Report – A Crucial Step for India’s Water Security 

In 2024–25, NITI Aayog released an extensive Water Budgeting and Water Balance Assessment Report, aimed at addressing India’s rapidly growing water scarcity. The report stresses the urgent requirement of scientific water budgeting at the state, district, block, and village levels, making it one of the most comprehensive water governance documents released in recent years.

India is entering a phase of heightened water stress due to population pressure, agricultural demands, climate change, and mismanagement. The report therefore serves as a strategic national roadmap for ensuring water sustainability over the next decade.

Key Highlights of the Report 

Population–Water Availability Imbalance

• India holds 18% of the world’s population but has access to only 4% of global freshwater resources.

• As per NITI Aayog, over 600 million Indians experience high to extreme water stress annually.

• Nearly 75% of households do not have clean drinking water piped to their homes.

Micro-Level Water Balance Sheets

• The report recommends annual water balance sheets for

  • Villages

  • Gram Panchayats

  • Districts

  • States

• These balance sheets must include:

  • Total available water (surface + groundwater + rainfall)

  • Total household and agricultural demand

  • Industrial consumption

  • Seasonal shortages and surpluses

Mandatory Groundwater Audits

• States with critical groundwater zones must conduct yearly audits.

• High-risk zones identified include:

  • Punjab

  • Haryana

  • Rajasthan

  • Gujarat

  • Northern Karnataka

  • Bundelkhand region

• Over 60% of India’s districts have groundwater extraction rates exceeding recharge levels.

Crop Diversification and Water-Efficient Agriculture

• NITI Aayog highlights that crops like paddy and sugarcane consume 60–80% more water than climate-appropriate options.

• Recommendations:

  • Promote millets, pulses, oilseeds, and drought-resistant varieties.

  • Introduce micro-irrigation (drip, sprinkler) to reduce water use by 30–40%.

  • Encourage less water-intensive livestock fodder crops.

Community Water Governance Committees

• The report calls for the formation of Village Water Councils (VWCs) to:

  • Monitor local water availability

  • Maintain village water balance sheets

  • Regulate groundwater extraction

  • Enhance community participation

• The aim is to make water management community-driven rather than purely government-driven.

Why Water Budgeting Matters 

Predicting and Managing Water Shortages

• Water budgeting helps forecast:

  • Seasonal shortages

  • Drought cycles

  • Areas requiring tanker supply

  • Regions that need storage structures

Improved Water Infrastructure Planning

• Enables scientifically informed construction of:

  • Check dams

  • Recharge pits

  • Watershed structures

  • Greywater reuse systems

  • Community storage tanks

Efficient Irrigation and Agriculture Management

• Helps farmers plan cropping patterns based on available water.

• Prevents over-extraction of groundwater during dry seasons.

Better Urban Water Management

• Urban local bodies can plan:

  • Daily municipal supply

  • Non-revenue water reduction

  • Stormwater capture

  • Leakage audits

Long-Term Climate Adaptation

• Water budgeting is crucial as India faces:

  • Increased drought frequency

  • Irregular monsoons

  • Rapid groundwater decline

  • Higher evapotranspiration

Major Risks Identified in the Report

Falling Groundwater Tables

• Nearly 70% of India’s freshwater is sourced from groundwater.

• States like Punjab and Haryana may face agricultural collapse within 10–15 years if extraction continues at current levels.

Poor Water Quality

• Over 65% of households use contaminated water sources.

• High presence of fluoride, arsenic, nitrate, and salinity.

Urban Water Stress

• 21 major cities, including Delhi, Bengaluru, Hyderabad, Chennai, risk running out of groundwater soon.

Climate-Driven Variability

• Expected 5–10% decline in rainfall reliability by 2030.

• More frequent flash floods and droughts.

Policy Linkages – How the Report Connects With National Schemes

Atal Bhujal Yojana

• Supports groundwater recharge

• Promotes participatory water management

• Currently implemented in 7 states

Jal Jeevan Mission

• Targets Har Ghar Jal (tap water for every household)

• Water budgeting helps estimate supply capacity and demand requirements

Jal Shakti Abhiyan

• Encourages village-level water conservation

• Water budgeting adds scientific structuring to this mission

PM Krishi Sinchai Yojana

• Focuses on efficient irrigation

• Water budgeting guides micro-irrigation planning

Mahatma Gandhi NREGA

• Funds water conservation structures

• Water budgets identify where such structures are most needed

The Future of India’s Water Security – What the Report Suggests

Mandatory Water Auditing for Industries

• Industries must adhere to water usage norms.

• Mandatory recycling for water-intensive businesses like textiles, sugar mills, breweries, etc.

Digital Water Monitoring

• Real-time sensors for groundwater levels

• GIS-based mapping of aquifers

• Online dashboards for villages and states

School-Level Water Literacy Curriculum

• To create awareness on conservation

• Encourage youth involvement in water management

Smart Water Pricing

• Discourage overuse through slab-based pricing in urban areas

• Promote reuse and recycling

Important Points – NITI Aayog Water Budgeting Report 

• India has 18% of global population but only 4% of global freshwater resources.

• Nearly 600 million Indians face high or extreme water stress every year.

• Over 60% of districts in India have groundwater extraction higher than recharge levels.

• The report mandates creating annual water balance sheets at village, district, and state levels.

• High-risk groundwater states: Punjab, Haryana, Rajasthan, Gujarat, Karnataka (North), Bundelkhand.

• Suggests mandatory groundwater audits in critically exploited zones.

• Encourages crop diversification away from water-intensive crops like paddy and sugarcane.

• Promotes micro-irrigation (drip/sprinkler), which can save 30–40% water.

• Recommends forming Village Water Councils / Water Governance Committees.

• Focus on rainwater harvesting, check dams, recharge pits, watershed development, and greywater recycling.

• Emphasizes real-time digital monitoring of groundwater using GIS and sensors.

• Links strongly with national schemes like Jal Jeevan Mission, Atal Bhujal Yojana, and Jal Shakti Abhiyan.

• Urban risk: 21 major cities including Delhi, Bengaluru, Chennai, Hyderabad could face groundwater depletion.

• Climate impact: higher frequency of droughts, erratic monsoons, and 5–10% rainfall variability expected by 2030.

• Industrial mandate: water-heavy industries must adopt recycling and reuse systems.

• Prioritises community-led management over top-down water governance.

• Calls for school-level water conservation curriculum to build awareness.

• Stresses the need for smart water pricing to discourage overuse in urban sectors.

• Identifies water budgeting as essential for agriculture planning, urban supply management, and future climate resilience.

2. India–USA Javelin Missile Deal – Strengthening Defence Ties 

In late 2024, India and the United States finalized a landmark defence cooperation agreement that allows the co-production of the FGM-148 Javelin Anti-Tank Guided Missile within India. This deal marks a significant milestone in India’s pursuit of defence self-reliance, advanced battlefield technology, and deeper military collaboration with the United States.

The co-production initiative is part of the U.S.–India Defence Industrial Cooperation Roadmap, aligning with national goals such as ‘Make in India’, defence indigenization, and technology transfer for high-end weapon systems. The agreement includes shared manufacturing, joint quality testing, and potential export opportunities to friendly nations.

What is the Javelin Missile? 

The FGM-148 Javelin is one of the world’s most advanced man-portable, fire-and-forget anti-tank guided missiles. Known for its high accuracy and reliability, it has been widely used in multiple conflicts including Iraq, Afghanistan, and Ukraine.

Key Characteristics

• Operates on infrared homing guidance, requiring no further operator tracking once fired.

• Has a range of approximately 2.5 km, with newer variants extending beyond 3 km.

• Capable of destroying armored vehicles, bunkers, low-flying helicopters, and fortified positions.

• Carries a tandem high-explosive anti-tank (HEAT) warhead, effective against modern explosive-reactive armor.

• Dual attack modes:

  • Top Attack – targets the weakest armor on the top of tanks.

  • Direct Attack – effective against bunkers, walls, and soft targets.

• Lightweight and easy to operate, making it ideal for infantry use in high-altitude and mountainous terrain.

Key Features of the India–USA Javelin Deal 

Co-Production in India

• The Javelin will be jointly produced by Lockheed Martin, Raytheon, and Indian defence companies.

• Manufacturing will include:

  • Missile components

  • Guidance units

  • Launch systems

  • Electronic assemblies

Advanced Technology Transfer

• India will receive critical seeker and infrared imaging technologies.

• Access to Javelin’s fire-and-forget algorithm architecture (rarely shared by the U.S.)

• Improves India’s domestic capability to develop the next generation of ATGMs.

Industrial and Export Benefits

• India will become a production hub for Asia and Africa, enhancing export potential.

• Creates thousands of jobs in India’s private and public defence sectors.

• Strengthens India’s role in the Quad defence supply chain.

Why This Deal Matters 

1. Strategic Importance Against Armored Threats

• Enhances India’s ability to counter Chinese armored divisions deployed near Ladakh.

• Provides a strong deterrent against Pakistan’s armored formations.

2. Boost to Mountain Warfare Capability

• Javelin’s portability makes it essential for high-altitude infantry.

• No need for heavy launch platforms or complex targeting systems.

3. Reducing Dependency on Russia

• Diversifies India’s anti-tank missile inventory beyond the Russian Konkurs and Kornet systems.

• Strengthens defence reliability amid evolving geopolitics.

4. Strengthening India–US Strategic Partnership

• The deal is part of a broader shift toward high-technology defence collaboration.

• Reflects deeper trust, similar to past deals on drones, aircraft engines, and secure communications.

5. Support for Self-Reliance & Long-Term Capability

• Helps India build domestic expertise in:

  • Infrared imaging

  • Missile guidance technology

  • Electronic fuzes

  • Seeker technology

• These capabilities are essential for India’s future missile development roadmap.

Important Points – India–USA Javelin Missile Deal 

• The Javelin is a man-portable, fire-and-forget anti-tank guided missile with a range of 2.5 km.

• Co-production approved under ‘Make in India’ and the US–India Defence Industrial Cooperation Roadmap.

• Includes advanced technology transfer, particularly infrared seeker systems.

• Javelin has top-attack and direct-attack modes, effective against modern tanks and bunkers.

• Strengthens India’s infantry capability in high-altitude terrain like Ladakh.

• Reduces dependency on Russian anti-tank missiles.

• Enhances India–USA defence relations, especially in high-end missile technology.

• Creates export potential for India in the Indo-Pacific region.

• Supports India’s goal of becoming a global ATGM manufacturing hub.

• Helps counter regional threats posed by Chinese & Pakistani armored deployments.

• Strengthens India’s position in the Quad defence supply network.

• Aligns with India’s long-term objective of defence indigenization and self-reliance.

3. Prime Minister Fasal Bima Yojana – New Changes & Improvements

The Pradhan Mantri Fasal Bima Yojana (PMFBY), launched in 2016, is India’s flagship crop insurance scheme aimed at protecting farmers against crop losses resulting from natural calamities, pests, diseases, and weather extremes. In 2024–25, the scheme underwent major reforms to improve efficiency, transparency, and accessibility for farmers across the country.

The new changes reflect the government’s commitment to building a technology-driven, farmer-centric insurance ecosystem that ensures timely compensation and reduces administrative delays.

Recent Major Reforms 

1. Faster Claim Settlement Using AI

• Introduction of AI-driven crop-loss assessment models.

• Machine learning tools analyze:

  • Weather deviations

  • Vegetation changes

  • Crop health patterns

  • Yield variations

• This reduces manual dependency and speeds up claim evaluation.

2. Satellite Imagery & Drone-Based Assessments

• Drones deployed for:

  • Real-time damage mapping

  • Post-disaster field inspections

  • High-resolution geo-tagged surveys

• Satellite data helps in area yield estimation, ensuring accuracy and minimizing disputes.

3. Uniform Premium Limits (No Change to Farmer Premium Caps)

• Farmers continue paying a fixed subsidized premium:

  • 2% for Kharif crops

  • 1.5% for Rabi crops

  • 5% for commercial/horticulture crops

• The government and insurers bear the remaining premium burden.

4. Voluntary Enrolment for Loanee Farmers

• Earlier, farmers with crop loans were mandatorily enrolled.

• Now, they have the freedom to choose participation.

• This resolves complaints of automatic deductions from bank accounts.

5. Mobile-Based Crop Insurance App Integration

• Farmers can:

  • Register claims

  • Upload photographs of damaged crops

  • Track claim progress

  • Verify insurance coverage

• The app is available in multiple regional languages.

6. Multi-Stakeholder Digital Platform

• A unified portal connects:

  • Farmers

  • Insurance companies

  • Banks

  • State governments

• Ensures transparent claim processing and reduces data errors.

7. Focus on Localized Calamity Assessment

• Granular evaluation at village and panchayat level, instead of district-wise estimates.

• Helps in recognizing micro-level crop damage.

Why the Updates Were Needed 

1. Delayed Claim Settlements

Farmers frequently experienced delays of several months, causing financial distress during critical periods.

2. Inaccurate or Incomplete Damage Assessments

Traditional methods depended heavily on manual crop-cutting experiments (CCEs), which were slow, inconsistent, and prone to human error.

3. Lack of Transparency

Farmers often did not know:

• Whether their application was accepted

• Premium deducted

• Claim status

• Reason for rejection

4. Coordination Weakness

Banks, insurers, and state authorities sometimes failed to share updated data, leading to:

• Duplicate entries

• Incorrect coverage

• Claim rejection due to mismatched records

5. Climate-Related Crop Risks Increasing

Frequent:

• Unseasonal rains

• Droughts

• Floods

• Heatwaves

• Cyclones
  increased the need for a more efficient insurance system.

Impact of the 2024–25 Reforms 

1. More Accurate Claims

Use of AI and satellite imagery ensures accuracy in identifying the actual extent of damage, reducing disputes and re-evaluations.

2. Faster Compensation

Claim turnaround time has significantly reduced, providing funds to farmers when they need them the most — especially during sowing and repayment seasons.

3. Increased Farmer Participation

Voluntary enrolment and transparency have improved trust in the scheme.

4. Better Disaster Preparedness

Real-time monitoring helps governments respond more effectively during extreme weather events.

5. Strengthened Digital Ecosystem

Digital verification reduces fraud, enhances data management, and streamlines claim disbursal.

Important Points – PM Fasal Bima Yojana 

• Launched in 2016 to provide crop insurance to farmers.

• Major reforms introduced in 2024–25 to improve transparency and speed.

• AI, drones, and satellite imagery used for accurate crop-loss assessment.

• Farmers pay a fixed premium: 2% (Kharif), 1.5% (Rabi), 5% (Commercial crops).

• Loanee farmers now have voluntary participation.

• Mobile app allows real-time claim tracking and uploading of damage photos.

• Digital platform connects farmers, banks, insurers, and state governments.

• Local-level assessment (village/panchayat) replaces broad district-level evaluation.

• Faster claim processing improves farmer financial stability.

• Helps manage climate risks like drought, floods, and unseasonal rain.

• Goal: create a technology-driven, farmer-centric crop insurance ecosystem.

4. RBI’s Upcoming Monetary Policy – What to Expect

The Reserve Bank of India’s Monetary Policy Committee (MPC) meeting scheduled for December has major expectations from the public, banks, and markets.

Your notes had questions like:

• “RBI issues what?”
•  “How many targets?”
• “What is CPI inflation?”
•  “Important terms?”

Let’s cover everything:

What RBI Releases

RBI releases the Monetary Policy Statement, which includes:

• Repo Rate

• Reverse Repo Rate

• MSF (Marginal Standing Facility)

• Bank Rate

• CRR (Cash Reserve Ratio)

• SLR (Statutory Liquidity Ratio)

• Outlook on inflation & GDP growth

India’s Monetary Policy Targets

RBI’s primary mandate:

Keep CPI inflation at 4% ± 2%

This means inflation must stay between 2% and 6%.

Key Terms You Must Know

Repo Rate

Rate at which RBI lends money to banks.

Reverse Repo

Rate at which RBI borrows from banks.

CRR

Percentage of bank deposits to be kept with RBI in cash.

SLR

Percentage of deposits banks must keep in safe government securities.

MSF

Emergency borrowing window for banks.

RBI’s Expected Measures in December

Based on economic indicators:

• Inflation expected to remain above 5%

• Hence, RBI may continue with a pause in repo rate cuts

• Liquidity tightening measures likely

• Focus on controlling food inflation and stabilizing the rupee

The monetary policy outlook is crucial for sectors like housing, loans, banking, and investments.

RBI Governor (G.G) and Deputy Governors (Delta G)

RBI Governor – Term Duration and Appointment Rules

• The RBI Governor is appointed for a fixed term of 3 years.

• The term can be extended by the Government of India based on performance and requirement.

• Extensions may be for 2 years or 3 years, depending on the government’s decision.

• There is no upper age limit mentioned in the RBI Act for the Governor.

RBI Deputy Governors – Term Duration and Rules

• Each Deputy Governor is appointed for 5 years or until they reach the age of 62, whichever comes earlier.

• Deputy Governors may also receive extensions, depending on the approval of the central government.

• The RBI has four Deputy Governor positions at any time.

How Many Times Are These Appointments Done in a Year?

• There is no fixed number of times these appointments occur in a year.

• Appointments are made only when a term ends, a seat becomes vacant, or someone retires or resigns.

• This means appointments happen as needed, not on an annual schedule.

Important Points – RBI Monetary Policy 

• RBI releases the Monetary Policy Statement every two months.

• Monetary Policy includes: Repo Rate, Reverse Repo, MSF, Bank Rate, CRR, SLR, inflation and GDP outlook.

• The RBI’s primary target: CPI inflation at 4% ± 2% (range 2–6%).

• Repo Rate: Rate at which RBI lends to banks.

• Reverse Repo: Rate at which RBI borrows from banks.

• CRR: Percentage of deposits banks must keep with RBI in cash.

• SLR: Percentage of deposits banks must maintain in government securities.

• MSF: Emergency borrowing window for banks from RBI.

• The Monetary Policy Committee (MPC) has 6 members:

  • RBI Governor

  • RBI Deputy Governor (Monetary Policy)

  • One RBI Executive Director

  • Three government-appointed external members

• MPC meets 6 times a year, and each meeting lasts 3 days.

• RBI was established on 1 April 1935 under the RBI Act, 1934.

• RBI Governor (G.G) term: 3 years, extendable by government.

• RBI Deputy Governors (Delta G) term: 5 years or up to age 62, whichever comes earlier.

• Appointments of Governor and Deputy Governors are not annual; they occur only when vacancies arise.

• Upcoming monetary policy expectations:

  • Inflation likely to remain above 5%.

  • Repo rate cuts may remain on pause.

  • Focus on controlling food inflation, market liquidity, and stabilizing the rupee.

• RBI decisions impact key sectors: housing loans, banking, investments, inflation, and growth.

• CPI is the main inflation measure used by RBI for policy decisions.

• RBI monitors parameters like GDP growth, crude oil prices, rupee stability, liquidity, global interest rates, and forex reserves.

5. BrahMos Missile – Recent Successful Test & Strategic Importance 

The BrahMos Supersonic Cruise Missile, jointly developed by India and Russia, continues to be one of the most advanced cruise missiles in the world. In 2024–25, India achieved a major milestone when the Indian Navy successfully conducted a precision strike test of an upgraded BrahMos variant in the Bay of Bengal.

This test demonstrated India’s expanding strike capability, technological sophistication, and strengthening deterrence posture in the Indo-Pacific region.

About the Recent Test 

• The test was conducted from an Indian Navy frontline warship, using the latest BrahMos Block-III/IV variant.

• The missile accurately hit a surface maritime target, showcasing high stability, precision, and reliability.

• The missile followed a complex trajectory, including:

  • High-altitude climb

  • Terminal sea-skimming

  • Evasive manoeuvres

• The successful trial confirmed improvements in:

  • Range

  • Accuracy

  • Speed consistency

  • Anti-jamming capability

• It reinforced India’s operational readiness and combat superiority in the Indian Ocean Region (IOR).

Why This Test Is Important 

1. Upgraded Extended Range: 450–500 km

• Earlier versions had a range of 290 km due to export restrictions under MTCR.

• Newer variants can reach 450–500 km, and ongoing tests suggest future versions could touch 800–1,000 km.

2. Enhanced “Seeker” Accuracy

• The latest test validated an Indigenously developed Seeker by DRDO.

• Improved target tracking under:

  • Jamming

  • Low-visibility

  • High-electronic warfare conditions

3. Boost to Naval Deterrence

• Ideal for anti-ship and land-attack roles.

• Strengthens India’s capability to dominate chokepoints such as:

  • Malacca Strait

  • Andaman Sea

  • Arabian Sea

4. Critical for the Indian Ocean Region (IOR)

• Counters increasing Chinese naval activity.

• Ensures maritime stability and sea-lane security.

5. Supports India’s Global Export Strategy

• Philippines already signed a $375 million BrahMos deal, receiving first deliveries in 2024.

• Vietnam, Indonesia, Brazil and other countries have also shown interest.

Latest BrahMos Developments (2024–25)

1. BrahMos-NG (Next Generation) Under Development

• Lighter and smaller version (1.5 ton → 1.0 ton)

• Speed: Mach 3.5 (faster than current versions)

• Will be deployable on:

  • Tejas MK2

  • AMCA

  • Multi-role helicopters

  • Smaller naval ships

2. Air-Launched BrahMos Success

• The IAF continues to deploy BrahMos from Su-30MKI fighter jets.

• In 2024, IAF tested extended-range air-launched BrahMos with 450+ km range.

3. Stealth & Reduced Radar Signature Upgrades

• BrahMos now includes reduced RCS (Radar Cross Section) to evade detection.

4. Integration With Indian Submarines

• DRDO is developing a submarine-launched vertical variant, enhancing underwater strike capability.

5. Improved Fuel Efficiency & Propulsion

• Ramjet propulsion improvements allow better fuel burn and higher sustained supersonic speed.

BrahMos – Key Features 

Speed & Performance

• Speed: Mach 2.8–3.0 (supersonic throughout flight)

• Difficult to intercept by modern air-defense systems due to:

  • High speed

  • Low-altitude sea-skimming

  • Terminal manoeuvres

Multi-Platform Capability

• Land-based mobile launchers

• Naval warships

• Submarine vertical launch systems

• Air-launch (Su-30MKI)

• Future: Helicopters & Tejas Mk2 (BrahMos-NG)

Dual Guidance System

• Uses a combination of:

  • INS/GPS mid-course guidance

  • Active radar seeker for terminal phase

Warhead

• 200–300 kg precision warhead

• Suitable for:

  • Ships

  • Fortified targets

  • Bunkers

  • Command centres

Strike Modes

• Sea-skimming

• High-diving attack

• Mixed trajectory

• Terminal manoeuvre mode

India’s Export Momentum

Philippines BrahMos Deal (Delivered 2024)

• First-ever exported version of BrahMos

• Part of Manila’s coastal defence modernization

Growing Global Interest

Countries showing interest:

• Vietnam

• Indonesia

• Malaysia

• Brazil

• UAE

• South Africa

This positions India as a global missile exporter, strengthening defence diplomacy.

Important Points – BrahMos Missile 

• Jointly developed by India (DRDO) and Russia (NPOM).

• Supersonic cruise missile with speed Mach 2.8–3.0.

• Latest test (2024–25) from Indian Navy warship in Bay of Bengal achieved a precision strike.

• Upgraded range: 450–500 km, future versions may reach 800–1,000 km.

• New test validated DRDO’s indigenous seeker and enhanced accuracy.

• Multi-platform missile: land, sea, air, submarine.

• Air-launched variant used by Su-30MKI, now with extended range.

• BrahMos-NG (Next Gen) under development with faster speed (Mach 3.5) and smaller size.

• Key for India’s naval dominance in the Indian Ocean Region (IOR).

• Enhances India’s anti-ship and land-attack capability.

• Philippines is the first export customer; multiple countries are interested.

• Sea-skimming and terminal manoeuvre make it difficult to intercept.

• Boosts India’s defence self-reliance and global arms export profile.

Conclusion

India is witnessing rapid progress in sectors like water management, defence modernization, agricultural insurance, and monetary policy reforms. These developments indicate a nation preparing for future challenges with advanced technology, global cooperation, and smarter governance.

From the scientific NITI Aayog Water Budgeting Report, to the strategic India-USA Javelin Missile Deal, to the strengthened PM Fasal Bima Yojana, and the impactful RBI Monetary Policy, each development contributes to India’s long-term resilience.

The successful BRAHMOS missile test further elevates India’s defence capabilities on the global stage.

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