Small and Smart: How AI is powering SMEs in India's e-commerce boom

iStock AI has been a great help not just for sellers but for consumers as well.
Since OpenAI launched ChatGPT, a conversational chatbot powered by artificial intelligence (AI), in 2022, the world has not been the same. Although AI wasn't entirely new to businesses and consumers, ChatGPT showcased the potential for technology to be used across various sectors with diverse and nuanced applications. The world of supply chain and e-commerce had already begun employing data analytics and machine learning (ML) to gain insights into consumer behaviour and facilitate demand forecasting and inventory management. As AI continues to advance, experts say it is reshaping the e-commerce industry in India and changing the way Indians shop online.
People no longer use short keywords while using AI tools like ChatGPT for shopping online, according to Kapil Makhija, CEO & MD of Unicommerce. Instead, they ask complete, natural questions, such as 'What are the best high-quality shoes for running?' or 'Show me kurti options under Rs 1,000' or 'Show me running shoes that can be delivered in 2 days.'
'These and more are real examples of how customers are using AI in their digital commerce journeys,' says Makhija. 'Evolving user behaviour, expansion in the number of online channels, growing emphasis on enhanced user experience and the need to drive higher operational efficiencies are driving AI adoption in multiple ways,' he observes.To stay visible in AI-driven conversations, he says, product data needs to mirror the way people speak with natural phrases like 'reliable running shoes for daily jogs' or 'suitable for gym workouts', which mimic how shoppers describe their needs in AI tools. 'The more closely product information matches the way people actually describe what they're looking for, the more likely it is for the product to be recommended by conversational AI tools.''AI can enable an enhanced search experience by using natural language processing (NLP), which helps understand customers' search intent while offering conversational search. It can allow customers to refine queries through dialogues, like a discussion with a human salesperson,' he says.
Additionally, AI is helping these demands sync up with the inventory, says Makhija. 'When a customer looks for running shoes that can be delivered in two days, it will look at available data and give the results. If a brand's inventory is not synced across channels, the choice will not show up, even if it is available,' he explains.'Real-time inventory visibility is no longer an operational strength; it is the starting point in an AI-powered shopping world. While there are a growing number of sales channels like multiple marketplaces, quick-commerce chains, brand websites and apps, physical stores and omni-channel integrations that connect brands to sellers, the inventory is typically held in a few locations only. Technology helps track real-time inventory across various points of sale and storage,' he says.At the same time, he points out that AI can simplify the complexity of selling on multiple e-commerce platforms by automating product listings to ensure consistent descriptions and images across platforms.
For automating operations, e-commerce enablement platform Shiprocket has recently launched an AI-integrated model context protocol (MCP) server. This server allows AI agents to perform key operations, such as checking shipping rates or tracking orders, all through a single line of instruction.
Saahil Goel, Co-founder and CEO of Shiprocket, says that India has a very good opportunity with AI due to the abundance of unstructured data in the country. This includes different accents, languages, and voices, which means that many things that could be automated in the West remain unautomated in India.'Additionally, India has struggled with DIY (Do-It-Yourself) in the past, and it still hasn't accepted it to a great degree. I do think that can change with AI. Right now, the merchant depends on service providers for many things, all of which can come down to a prompt. Today's AI-powered co-pilots are very intelligent; they can be connected to a merchant's business, their ad account, their marketplaces, Google Analytics, etc. A merchant can simply ask the co-pilot to do a reconciliation or ask, 'How much money does Amazon owe me?' and they will get accurate answers. SMEs could have a McKinsey consultant in their pocket,' he says, adding that often SMEs struggle with not knowing, and then the cost to deliver that knowledge to them is very high in a service-orientated market.AI also helps with eliminating errors, especially in logistics, such as getting the right state and PIN codes, he says.Makhija also highlights that logistics accounts for a substantial expense in e-commerce operations. Different products, geographies, modes of payment, values of products and more determine the right courier selection for a certain order. AI models predict which courier will deliver fastest or with the least risk of RTO (Return to Origin) for a specific package or geography.'For businesses using multiple delivery partners, AI engines help allocate deliveries across different courier partners based on service levels, area efficiency, or cost. Shipway is Unicommerce's logistics management platform that provides both courier aggregation and courier automation services. Shipway's smart courier automation services help it dynamically suggest the best carrier based on current rate cards, package weight, distance, and urgency. This helps businesses reduce RTOs, improve delivery SLAs and manage costs,' he says.He adds that AI can also help in RTO (return-to-origin) reduction and fraud detection. AI helps in predictive analytics to determine likely failure chances of a delivery based on address patterns, COD risk, or past delivery success. 'AI can predict the likelihood of delivery failure and automate proactive action like calling the customer in advance. AI can also increase the efficiency of fraud detection by flagging suspicious delivery patterns, like unusually high failed deliveries from a specific area or user,' he says.AI has been a great help not just for sellers but for consumers as well. As per Praveen Govindu, Partner, Deloitte India, AI now permeates nearly every aspect of the digital retail experience. From bot-led customer support to reduced cart abandonment, AI has a lot to offer to enhance consumer experience.'Virtual assistants and chatbots now handle a wide range of customer interactions—from answering questions to guiding users through purchases and resolving post-purchase issues, improving conversion rates and post-purchase satisfaction. AI also tackles the persistent problem of cart abandonment by sending smart, personalised reminders and offering targeted discounts on abandoned cart products. Real-time chatbots also step in to resolve last-minute doubts, nudging customers to complete purchases,' he says.He continues, 'AI-driven AR (Augmented Reality) allows customers to visualise how products like cosmetics, clothing or furniture will look like on real users/set-ups, bridging the gap between online convenience and in-store confidence.'However, this technology comes with its own set of challenges, such as outdated data quality, over-automation, integration issues and privacy risks.AI can automate only what is well-defined. If business processes are flawed, automation will simply make bad outcomes happen faster. Over-automation can also lead to inefficiencies and customer frustration if not properly managed. Further, integrating AI with existing systems can be difficult, especially with legacy infrastructure causing delays and additional costs. Implementing AI involves significant upfront investment, ongoing maintenance and employee training. 'These can be barriers for small businesses,' he says. He also points out the lack of human touch.According to Deloitte India's Govindu, AI cannot think strategically, create original ideas or form emotional connections with customers. 'It only excels at well-defined and repetitive tasks.'Adds Shiprocket's Goel, saying that AI is also capable of generating fake content and fake reviews and thus has the potential to be abused. Interestingly, it is also good at catching these fake reviews and accounts and checking whether they are spam.Nevertheless, the future looks promising as per the experts. Goel believes that AI's applications will go deep into regional tier II and tier III markets using video and voice-based intelligence.'Today, when we work with brands or B2C firms, there are typically 4-5 segments—male, female, urban, non-urban, etc., and their combinations. But, in reality, there could be 1000s. You could do thousands of creatives for these thousands of people. With AI, it becomes possible to run the same ad in different versions as per every city,' he says.Talking about the future use cases, Govindu said that there will be a lot more autonomous product tagging and catalog management as well as real-time profiling and customer targeting. AI will automatically tag, categorise, and update product listing based on image and text recognition, he says.'By analysing real-time data streams like browsing patterns, cursor movements, and session interactions, AI constructs evolving customer profiles and plans hyper personalised targeting strategies. For example, AI can monitor micro interactions (scroll depth, hover duration) to infer intent adjusting recommendations mid-session. It can also analyse externally integrated data like weather, location, and device-type to tailor offers,' he says.
On the occasion of World MSME Day on June 27, 2025, ET Digital will also open registrations for its sixth edition of the ET MSME Awards 2025. The coveted award programme celebrates India's top MSMEs for their achievements and contribution to the nation's economic development.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Time of India

15 minutes ago

• Time of India

Not just co-founder's company, Meta CEO Mark Zuckerberg also wanted to buy another ex-OpenAI employee's AI startup

Meta CEO has reportedly explored acquiring several prominent artificial intelligence (AI) startups to accelerate the company's development in the field. According to recent reports, Meta held preliminary discussions to purchase Perplexity, led by CEO Aravind Srinivas, and Safe Superintelligence (SSI), the new venture from former co-founder Ilya Sutskever . Tired of too many ads? go ad free now It has also been claimed that Zuckerberg showed interest in buying Thinking Machines Lab , a startup founded by former OpenAI CTO Mira Murati . Citing sources familiar with the matter, The Verge said that the talks did not advance to the formal offer stage due to disagreements over valuation and strategic alignment. Notably, Murati's AI startup has closed on a $ 2 billion investment at a $10 billion valuation. OpenAI CEO recently stated that Meta has aggressively tried to poach OpenAI employees, offering signing bonuses as high as $100 million along with substantial annual compensation packages. Speaking on the "Uncapped" podcast, Altman addressed the rivalry between the two companies. 'I've heard that Meta thinks of us as their biggest competitor,' he said. 'Their current AI efforts have not worked as well as they have hoped, and I respect being aggressive and continuing to try new things,' he added. Meta acquires ScaleAI, hires its CEO The canvassing efforts coincide with the formation of a new AI leadership team at Meta. Alexandr Wang, the former CEO of Scale, has been hired to lead the new division in a deal reportedly valued at over $14 billion. Wang officially joined Meta this week after his departure from Scale last week. Reporting to Wang, SSI co-founder Daniel Gross and former GitHub CEO Nat Friedman are poised to co-lead the Meta AI assistant project. Wang is currently meeting with Meta's senior leadership and actively recruiting for the new team, with an official announcement anticipated as early as next week. 5 Must-Have Gadgets for Your Next Beach Holiday to Stay Safe, Cool & Connected

The Hindu

2 hours ago

• The Hindu

Investors want to buy multiple financial products under a single umbrella, says Shriram Wealth's Vikas Satija

Chennai-based Shriram Group, which recently announced its foray into the wealth management business in partnership with South African financial services player Sanlam Group that globally manages assets worth over $80 billion, said it would serve India's growing base of affluent and high-networth investors with personalised solutions designed with the help of artificial intelligence. Shriram Wealth, the wealth management arm of the group, said it would offer a range of services including wealth management, lending solutions, protection solutions, global investment opportunities, inheritance and legacy planning. On market potential, Vikas Satija, Chief Executive Officer and Managing Director, Shriram Wealth told The Hindu that: 'India has 30 lakh households with each home having investable financial assets in excess of ₹2 crore. This opens up a huge market opportunity for wealth- management business.' Although new investor behaviours have been constantly evolving, the traditional Systematic Investment Plan (SIP) alone attracted ₹26,000 crore a month, which amounts to savings of ₹2,64,000 crore a year. 'This gives lot of depth to the capital market today and SIPs can even help absorb some of the pressure from Foreign Institutional Investor exits and overall, manage the pressure on the markets,'' Mr. Satija said. On emerging investor trends, Mr. Satija, said clients were increasingly looking forward to buying multiple products from a single company, unlike the conventional way of going to banks/NBFCs for deposits, insurance firms for various insurances, someone else for mutual funds etc. 'The emerging trend is, customers now prefer to buy all what they want, in terms of alternate investments, under a single umbrella. They want a Swiggy or Zomato for financial services,'' he observed. Paul Hanratty, CEO, Sanlam Group said, 'We see wealth management as a natural evolution as India's economy grows, and people become wealthier. Our aim is not just to manage money, but to create meaningful solutions. This isn't a short-term play; we're here to build a trusted, customer-first wealth business in India for the next 100 years.'' Shriram Wealth said primary target audience would be typically individuals in the 45 years plus, as generally wealth resided in that age group while additional thrust would be on customer relationship over number of transactions. The company would also be deploying artificial intelligence to enable personalised advisory, to make risk profiling sharper to ensure real-time portfolio recommendations. A digital mindset would make Shriram Wealth a provider that is anticipating investor needs rather than just responding. Subhasri Sriram, MD & CEO, Shriram Capital said, the new business, wealth management, was a mission of the company to unlock financial prosperity for millions of Indians.

Indian Express

3 hours ago

• Indian Express

UPSC Key: SSLV, King Cobra, and Nuclear Non-Proliferation Treaty

Important topics and their relevance in UPSC CSE exam for June 21, 2025. If you missed the June 20, 2025, UPSC CSE exam key from the Indian Express, read it here. Syllabus: Preliminary Examination: Current events of national and international importance. Mains Examination: General Studies-III: Science and Technology- developments and their applications and effects in everyday life. Achievements of Indians in science & technology; indigenization of technology and developing new technology. What's the ongoing story: In a big boost to open up the rapidly-growing space sector to private players, fighter jet maker Hindustan Aeronautics Limited (HAL) has won a bid to commercialise the SSLV — the smallest rocket developed by ISRO — with the technology transfer set to take place over the next two years. Key Points to Ponder: • What are the various space vehicles of ISRO? • What is the advantage of SSLV? • What do you understand by low-earth orbit? • What is the purpose of ISRO's commercial arm? • What is POEM on PSLV? Key Takeaways: • The cost-effective vehicle, capable of carrying up to 500 kg payload to low-Earth orbit, can be assembled quickly for commercially launching small and nano satellites, most of which were being sent outside the country for launch by foreign companies so far • During the technology transfer phase, HAL will have to make at least two SSLVs end-to-end while observing the procedure ISRO followed for the three developmental flights. In August 2027, the company can start manufacturing and offering commercial launches on its own. • HAL is also part of the consortium that won the bid to privately manufacture India's workhorse rocket PSLV, whose first launch is expected to happen this year. • CMD of NewSpace India Limited, the commercial arm of the space department, Radhakrishnan Durairaj said, 'This is different from the PSLV model, where we were the buyers. Here, the company will manufacture, launch, and look for its own market. And, there is a lot of potential considering that world over, satellites are being miniaturised and several constellations are coming up.' • Dr Pawan Goenka, Chairman of IN-SPACe, said that the second SSLV flights will also have the SMiLE (SSLV Module in LEO Experiment) — a technology demonstrator platform similar to POEM on PSLV where experiments are placed on the last stage of the rocket. Do You Know: • Satellites don't go into the space on their own. They have to be carried there by launch vehicles, or rockets, like the PSLV. The rockets have powerful propulsion systems that generate the huge amount of energy required to lift heavy objects like satellites into space, overcoming the gravitational pull of the earth. • ISRO's Small Satellite Launch Vehicle (SSLV) is a three-stage Launch Vehicle configured with three Solid Propulsion Stages. It also has a liquid propulsion-based Velocity Trimming Module (VTM) as a terminal stage, which can help adjust the velocity as it prepares to place the satellite. • Essentially, the aim behind SSLVs is to produce low-cost launch vehicles with short turnaround times and minimal infrastructural requirements. The SSLV can launch satellites weighing up to 500kg and accommodate multiple satellites. • Before SSLVs, smaller payloads had to be sent into Space using other launch vehicles carrying multiple, bigger satellites. They depended upon the launch schedules of those satellites. • The Polar Satellite Launch Vehicle (PSLV) is the third generation of Indian satellite launch vehicles. first used in 1994. More than 50 successful PSLV launches have taken place to date. It has also been called 'the workhorse of ISRO' for consistently delivering various satellites into low earth orbits (less than 2,000 km in altitude) with a high success rate. The PSLV-XL can carry around 1,860 kg of payload. • On the other hand, Geosynchronous Satellite Launch Vehicles (GSLVs) have been instrumental in launching communication satellites in the geosynchronous transfer orbit. According to the European Space Agency (ESA), telecommunications satellites are usually placed in geostationary Earth orbit (GEO). It is a circular orbit 35,786 kilometres above Earth's equator. Other Important Articles Covering the same topic: 📍Everyday Science: What are ISRO's launch vehicles, and how are satellites placed into space? 📍ISRO launches SSLV: What is the aim behind developing Small Satellite Launch Vehicles? UPSC Prelims Question Covering similar theme: (1) With reference to India's satellite launch vehicles, consider the following statements: (2018) 1. PSLVs launch the satellites useful for Earth resources monitoring whereas GSLVs are designed mainly to launch communication satellites. 2. Satellites launched by PSLV appear to remain permanently fixed in the same position in the sky, as viewed from a particular location on Earth. 3. GSLV Mk III is a four-staged launch vehicle with the first and third stages using solid rocket motors, and the second and fourth stages using liquid rocket engines. Which of the statements given above is/are correct? (a) 1 only (b) 2 and 3 (c) 1 and 2 (d) 3 only Syllabus: Preliminary Examination: Current events of national and international importance Mains Examination: General Studies-II: Government policies and interventions; General Studies-III: Conservation, environmental pollution and degradation, environmental impact assessment What's the ongoing story: A king cobra brought to Bhopal's Van Vihar zoo from Karnataka's Mangalore zoo in exchange for a tiger died in its enclosure on June 18. Chief Minister Mohan Yadav is keen on 'reintroducing' king cobras in Madhya Pradesh as an antidote to spiralling snakebite deaths. He also wants snakes in the state counted in order to assess numbers of the venomous ones. Key Points to Ponder: • Know about the habitat and distinctive features of the King Cobra • What are the challenges in introducing a new species into a region? • What is the IUCN status of the King Cobra? • How is the introduction of the King Cobra going to address the issue of snake bites in Madhya Pradesh? • What are the potential challenges in conducting a snake census? • What are the initiatives taken by the government to prevent snake bites? • What is the role of snakes in the ecosystem? Key Takeaways: • He also wants snakes in the state counted in order to assess numbers of the venomous ones. There are two problems with the CM's plans. • One, there is no protocol for counting snakes in the wild because nobody ever considered it feasible or necessary. • Two, irrespective of the merits of the claim that king cobras once inhabited the hot, dry forests of Madhya Pradesh, the selection of source — Karnataka — did not take into account new research that shows all king cobras are not the same. • The king cobra, the world's longest venomous snake, can grow to 15 feet in length. It prefers humid, dark forests with thick undergrowth, cool swamps, and bamboo patches across diverse habitats — from highland evergreen and semi-evergreen forests to estuarine mangroves with high rainfall. • In India, the king cobra's range includes the Western Ghats, the North Indian terai belt, Northeast India, the mangrove coastlines of West Bengal and Odisha, Andaman and Nicobar, and parts of the Eastern Ghats. • Since 2014, king cobras have been reported in Korba, eastern Chhattisgarh — hundreds of kilometres from Srikakulam in Andhra Pradesh or Berhampur in Orissa, the established range of the species. • Until recently, king cobras were considered one species, Ophiophagus hannah. However, in 2021, a study led by wildlife biologist Gowri Shankar used genetic and morphometric (shape and size) data for 'a species delimitation analysis', which identified four geographically separate lineages. • The small endemic population of king cobras in the hills of Western Ghats — Kerala, Tamil Nadu, Karnataka, Goa, and adjacent areas of Maharashtra — was distinguished as a separate species (Ophiophagus kaalinga), different from the king cobras found in the rest of India, including the Korba population closest to MP. • On the one hand, therefore, a king cobra brought from Karnataka to MP would be of a hill-dwelling species unused to central India's dry, bare, and hot forests. • A study by an international team of researchers published in the European Journal of Taxonomy last year underlined that the king cobra species endemic to the Western Ghats is 'restricted to relatively small areas and highly threatened habitats', and 'understanding the systematics of the genus' is important for identifying captive stocks for conservation. Do You Know: • Know about other snake species: — Black mamba Known for its black mouth, Black Mambas are highly aggressive species of snake. Found in sub Saharan Africa, they are the most feared of all. Like most snakes, even Mambas do not seek out humans but if they are threatened, they will attack. According to the BBC, if you are bitten by a black mamba, symptoms such as slurred speech and muscle twitches will follow in 10 minutes and likely death in half an hour. — Russel's viper Russel Vipers' bite is the most painful of all. They are quite aggressive and one of the 'the Big Four' along with Indian Cobra, common krait and saw-scaled viper. As per the BBC, these snakes account for 43% of all snakebites in India. However, an anti venom has been developed against its venom saving many lives. Other Important Articles Covering the same topic: 📍6 of the world's most venomous snakes that could easily kill you Previous year UPSC Prelims Question Covering similar theme: (2) King Cobra is the only snake that makes its own nest. Why does it make its nest? (2010) (a) It is a snake-eater and the nest helps attract other snakes (b) It is a viviparous snake and needs a nest to give birth to its offspring (c) It is an oviparous snake and lays its eggs in the nest and guards the nest until they are hatched (d) It is a large, cold-blooded animal and needs a nest to hibernate in the cold season (3) For which one of the following snakes is the diet mainly composed of other snakes? (2008) (a) Krait (b) Russell's viper (c) Rattlesnake (d) King Cobra Syllabus: Preliminary Examination: Current events of national and international importance Mains Examination: General Studies-II: Important International institutions, agencies and fora- their structure, mandate What's the ongoing story: Amid the heightened military tensions between Iran and Israel, the Islamic Republic said earlier this week that its Parliament was preparing a Bill to potentially leave the Treaty on the Non-Proliferation of Nuclear Weapons (NPT). Key Points to Ponder: • What is the Non-Proliferation of Nuclear Weapons (NPT)? • Is India part of the NPT? • What is the purpose of the NPT? • What are the concerns regarding nuclear energy? • What are Israel's concerns about Iran's nuclear programme? • What is the role of the IAEA? Key Takeaways: • The Israeli attack on Iran began on June 13, after Tel Aviv claimed that Iran was close to enriching weapons-grade uranium, effectively allowing it to build a nuclear weapon and pose, as per Prime Minister Benjamin Netanyahu, a 'threat to Israel's very survival'. Israel struck major nuclear facilities in Natanz and other Iranian cities. • Iran has denied the charges, saying it only plans to use nuclear power for peaceful purposes. It also vowed retaliation and launched ballistic missiles towards Israel. • NPT: Signed in 1968 and entered into force in 1970, the international treaty is aimed at preventing the spread of nuclear weapons and technology, and promoting cooperation in the peaceful uses of nuclear energy, as well as disarmament. • Soon after World War 2 (1939-45) which ended with the United States dropping atomic bombs on Japan, world powers raced to develop their own nuclear weapons. Simultaneously, efforts were also made to restrict the proliferation of nuclear technology. • In 1953, the US government launched the Atoms for Peace initiative under President Dwight D Eisenhower, laying the groundwork for the International Atomic Energy Agency (IAEA). • The treaty defines a nuclear state as one 'which has manufactured and exploded a nuclear weapon or other nuclear explosive device prior to 1 January 1967.' These are the US, the UK, France, the Soviet Union (later Russia) and China. • Today, 191 states have joined the treaty. India carried out its first nuclear tests in 1974 but has not signed it, and instead reiterated the principle of universality in preventing nuclear proliferation. Given the treaty's exceptions for the permanent five members of the UN Security Council, and the arbitrary date chosen as the cut-off point to accommodate the P5 members, it has been criticised as discriminatory. • Pakistan is also not a signatory. Israel, which is reported to possess nuclear weapons but has never confirmed it officially, has not signed it. North Korea signed it in 1985 but announced its withdrawal in 2003 after it was found to have built an enrichment program. It also expelled IAEA inspectors. • One of the treaty's 11 articles mentions the procedure for leaving it. Article 10 speaks of withdrawal: 'Each Party shall in exercising its national sovereignty have the right to withdraw from the Treaty if it decides that extraordinary events, related to the subject matter of this Treaty, have jeopardized the supreme interests of its country.' • A notice of withdrawal must be given to other parties and the UNSC three months in advance, and 'such notice shall include a statement of the extraordinary events it regards as having jeopardized its supreme interests.' • Iran has been a signatory since 1970 – nine years before the Islamic Revolution saw the formation of a theocratic state. However, in its first such decision in almost 20 years, the IAEA's 35-nation Board of Governors (which includes the P5, India, Bangladesh, Japan and Ukraine) recently said that Iran breached its non-proliferation obligations. • Exiting the treaty raises two major concerns: first, it will keep Iran out of the IAEA's purview and regular inspections, and second, it could set a precedent for other states to leave the global framework, weakening cooperation on a crucial subject. Do You Know: • Established in 1957, the IAEA was created in response to the deep fears and expectations generated by the increased use of nuclear technology. It was the result of U.S. President Eisenhower's 'Atoms for Peace' address to the General Assembly of the United Nations on 8 December 1953. • IAEA Safeguards are embedded in legally binding agreements. These safeguards are accepted by the states after the conclusion of such agreements with the agency. It plays a central role in preventing the proliferation of nuclear weapons through the independent verification of States' compliance with nuclear non-proliferation undertakings. • In 2014, India ratified the Additional Protocol (AP), which granted the International Atomic Energy Agency (IAEA) greater access to India's civil nuclear programme. India has signed an item-specific safeguards agreement under the IAEA along with Pakistan and Israel. They are nuclear-power states that are not a member of the Nuclear Suppliers Group (NSG). Other Important Articles Covering the same topic: 📍Knowledge Nugget | International Atomic Energy Agency (IAEA), the nuclear watchdog: A must-know for UPSC exam 📍What you must know about Uranium enrichment for UPSC exam UPSC Prelims Question Covering similar theme: (4) In the Indian context, what is the implication of ratifying the 'Additional Protocol' with the 'International Atomic Energy Agency (IAEA)'? (UPSC CSE 2018) (a) The civilian nuclear reactors come under IAEA safeguards. (b) The military nuclear installations come under the inspection of IAEA. (c) The country will have the privilege to buy uranium from the Nuclear Suppliers Group (NSG). (d) The country automatically becomes a member of the NSG. Syllabus: Preliminary Examination: Current events of national and international importance Mains Examination: General Studies-II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. What's the ongoing story: Earlier this month, the Union Ministry of Rural Development (MoRD) asked states to attach QR codes on all maintenance information display boards for roads built under the Prime Minister Gram Sadak Yojana (PMGSY). Key Points to Ponder: • What is the objective of PMGSY? • What is the difference between the Center Sector Scheme and the Centrally Sponsored Scheme? • How does the introduction of QR codes on all maintenance information ensure good governance? • What is the objective of the e-MARG system? • How are AI and ML being used by the government in various departments? Key Takeaways: • The first phase of the PMGSY was launched on December 25, 2000, by the then NDA government headed by Prime Minister Atal Bihari Vajpayee to improve rural infrastructure through road construction. • The second phase was launched in 2013. Another component, called the Road Connectivity Project for Left Wing Extremism Affected Areas (RCPLWEA), was launched in 2016 for the construction of rural roads in LWE-affected areas. The third phase was launched in 2019. • On September 11, 2024, the Central government approved phase IV to provide all-weather road connectivity to 25,000 unconnected habitations of population size 500+ in plains, 250+ in northeastern and hill states/UTs, special category areas and 100+ in LWE-affected areas, as per Census 2011. • Starting as a totally Centrally Sponsored Scheme, the funding pattern was modified from 2015-16 to 60:40 between the Centre and states (except for northeastern and Himalayan states). • The National Rural Infrastructure Development Agency (NRIDA), which comes under the MoRD and provides technical support for implementing the PMGSY, has written to all states about QR codes. The aim is to get public feedback about the quality and maintenance of roads. • Under the PMGSY, all roads after the completion of construction are maintained by the contractor for five years. This is done using a mobile-cum-web-based e-MARG (electronic Maintenance of Rural Roads) system. It is an e-governance solution for managing and monitoring rural road maintenance. • To enable easy sharing of feedback, a utility has been created in eMARG. A QR code can be generated for each road, to be displayed on the maintenance information display board on the road. The board can contain instructions for registering feedback in English and the local language. • The citizens' feedback photos will be integrated with the relevant Routine Inspection. Artificial Intelligence and Machine Learning will be employed to analyse these photographs to advise on Performance Evaluation (PE) marks. All programs implementing units, while giving PE marks, shall be responsible for checking these photos. Other Important Articles Covering the same topic: 📍Express Investigation: Tweak in Jal Jeevan tender rule removed cap on expense, led to Rs 16,000-crore extra cost Syllabus: Preliminary Examination: Current events of national and international importance Mains Examination: General Studies-II: Effect of policies and politics of developed and developing countries on India's interests, Indian diaspora. What's the ongoing story: As the Israel-Iran war rages amid indications that the US could join the strikes against Iranian nuclear facilities, Delhi has managed to persuade Tehran to open Iranian airspace for the evacuation of around 1,000 Indians via the north-eastern town of Mashhad. Key Points to Ponder: • What is the current situation in the Israel-Iran war? • Know about India's evacuation plan from conflict-hit regions • What is the Operation Sindhu? • What is the impact of the Israel-Iran war on India? • Why has Israel attacked Iran? • Map work: Sites where Israel attacked in Iran, Mashhad • Understand India's relationship with countries in West Asia • How is India's relationship with Israel and Iran? Key Takeaways: • Sources said Delhi, after days of negotiations, has moved its nationals to Mashhad and secured overflight permissions from Iran and Turkmenistan to fly Indians out of harm's way. • Mashhad is close to Iran's border with Turkmenistan, and India has found an air corridor for a safe flight out. • On Wednesday, India said it had launched Operation Sindhu to evacuate Indian nationals from Iran. A total of 110 Indian students were evacuated from northern Iran to Armenia on June 19. It has now started working on an evacuation plan from Israel as well. • India has faced a diplomatic challenge post Operation Sindoor. Armenia and Turkmenistan are some of Iran's neighbouring countries that Delhi is in touch with. India doesn't have very good ties with some of the other countries bordering Iran – Turkey, Azerbaijan and Pakistan. Both Ankara and Baku were seen taking sides with Islamabad. • Besides Armenia, Turkmenistan and Iraq are the other neighbouring countries of Iran with whom India has good ties; it doesn't have formal diplomatic ties with Afghanistan. It also has the Persian Gulf route, from where it can evacuate Indians through ships or via Saudi Arabia and Kuwait. Do You Know: Understanding Pakistan's balancing act on Iran • Islamabad has extended strong rhetorical support to Tehran amid the ongoing Iran-Israel conflict, calling Israel's actions a 'violation of all rules of civilised behaviour…and international humanitarian law'. Yet it has stopped short of making any tangible military commitments to Iran. • This delicate, deliberate balancing act is a product of Pakistan's complicated relationship with Iran as well as larger geopolitical considerations, especially regarding its relationship with the US and anxieties about India. • Iran was the first country to recognise Pakistan in 1947, and the Shah's regime extended military and diplomatic assistance to Pakistan during the 1965 and 1971 wars. But beyond the oft-emphasised veneer of Islamic brotherhood lie a number of friction points, which have surfaced frequently in the years after the Iranian Revolution of 1979. • The 900-km Iran-Pakistan border runs through the Baloch heartland, with the Pak province of Balochistan on one side and the Iranian province of Sistan-Baluchistan on the other. Each side accuses the other of providing safe haven to separatist groups. • Pakistan's relationship with Saudi Arabia, which funds and sustains several networks of Sunni madrasas in the country, has often come at the expense of its potential ties with Iran. • Iran's post-Revolution rupture with the US and Pakistan's continuing reliance on American support has further complicated the Islamabad-Tehran relationship. This is at the heart of Islamabad's current balancing act. • Iran has been a key element in India's strategy to circumvent Pakistan in regional connectivity projects. India's investment and operation of the deep-sea port in Chabahar, and the International North South Trade Corridor through Iran, potentially threaten to undermine the importance of Pakistan's own deep sea port at Gwadar (merely 70 km away on the same coast). • Pakistan's view of Israeli action against Iranian nuclear sites might also be coloured by its own experience during Op Sindoor, and the possibility of India hitting Pakistan's nuclear storage sites during a future conflict. For Pakistan, Israel's actions being potentially normalised by the international community might set a precedent for India to act similarly in the future. Other Important Articles Covering the same topic: 📍Expert Explains: Understanding Pakistan's balancing act on Iran 📍Expert Explains | War in Middle East: what next Previous year UPSC Prelims Question Covering similar theme: (5) The term 'two-state solution' is sometimes mentioned in the news in the context of the affairs of (2018) (a) China (b) Israel (c) Iraq (d) Yemen Previous year UPSC Prelims Question Covering similar theme: 'India's relations with Israel have, of late, acquired a depth and diversity, which cannot be rolled back.' Discuss. (2018) Syllabus: Preliminary Examination: Current events of national and international importance Mains Examination: General Studies-III: Infrastructure: Energy, Ports, Roads, Airports, Railways etc. What's the ongoing story: India's planned electric four-wheeler manufacturing capacity is set to rise over tenfold to 2.5 million (1 million = 10 lakh) units by 2030 — up from just 0.2 million today — making it the fourth-largest globally after China, Europe, and the US, according to new research by Rhodium Group. Key Points to Ponder: • What are the steps taken by the government to promote electric vehicle production in India? • What are the various types of EVs? • What are the benefits of EVs? Why did the government want to adopt EVs? • What are the challenges of EV adoption in India? • What are the challenges in battery technology for EVs? • Hybrids vs EVs— what is it? • Know about the technology behind EVs Key Takeaways: • The New York-headquartered think tank estimates that India's electric car manufacturing capacity will outstrip domestic demand by 1.1–2.1 million units over the next five years. However, tapping export markets will require 'driving down costs' to compete with China, it said. • By 2030, Rhodium projects India's electric car demand to reach between 0.4–1.4 million units, up from 0.1 million in 2024. With total car sales expected to hit 6 million, as per industry estimates, this implies an electric vehicle (EV) penetration rate of 7–23 per cent in four-wheelers. • India's anticipated production capacity of 2.5 million will be far behind China's 29 million, EU's 9 million, and 6 million in the US. • Comparing electric car sales growth, the report noted that EV penetration in India reached just 2 per cent in 2024, while in Vietnam it jumped from 3 per cent in 2022 to 17 per cent in 2024 — driven largely by domestic automaker VinFast. • On the battery front, the report observed India 'has rapidly become a standout player', and shows 'meaningful activity in both cells and modules'. 'India is set to become the largest module producer outside China, the US, and Europe, with significant capacity already under construction and announced,' it said. Do You Know: • An EV is defined as a vehicle that can be powered by an electric motor that draws electricity from a battery and is capable of being charged from an external source. An EV includes both a vehicle that can only be powered by an electric motor that draws electricity from a battery (EV) and a vehicle that can be powered by an electric motor that draws electricity from a battery and by an internal combustion engine (plug-in hybrid electric vehicle). • Presently, road transport contributes 12% of CO2 emissions related to energy in India and plays a significant role in urban air pollution, as reported by the IEA. • In response to these environmental challenges, Indian automotive manufacturers are making significant investments in electrification, along with the Government of India's subsidy schemes to boost electric vehicle (EV) adoption. • As the Indian government, both at the central and state levels has implemented various schemes to promote electric vehicle (EV) adoption: PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive), e-AMRIT, and States providing EV Subsidy. Other Important Articles Covering the same topic: 📍Electric Vehicles (EV) Schemes across India 2024: All you need to know 📍Hybrids vs EVs: Honda's pivot to hybrids is now part of a growing trend Previous year UPSC Prelims Question Covering similar theme: (6) In the context of electric vehicle batteries, consider the following elements: (2025) I. Cobalt II. Graphite III. Lithium IV. Nickel How many of the above usually make up battery cathodes? (a) Only one (b) Only two (c) Only three (d) All the four (7) Consider the following types of vehicles: (2025) 1. Full battery electric vehicles 2. Hydrogen fuel cell vehicles III. Fuel cell electric hybrid vehicles How many of the above are considered as alternative powertrain vehicles? (a) Only one (b) Only two (c) All the three (d) None (Please note: The official answer key of Prelims 2025 has not been provided by UPSC yet.) Previous year UPSC Mains Question Covering similar theme: How is efficient and affordable urban mass transport key to the rapid economic development in India? (2019) ALSO IN NEWS Subscribe to our UPSC newsletter. Stay updated with the latest UPSC articles by joining our Telegram channel – IndianExpress UPSC Hub, and follow us on Instagram and X. 🚨 Click Here to read the UPSC Essentials magazine for June 2025. Share your views and suggestions in the comment box or at Khushboo Kumari is a Deputy Copy Editor with The Indian Express. She has done her graduation and post-graduation in History from the University of Delhi. At The Indian Express, she writes for the UPSC section. She holds experience in UPSC-related content development. You can contact her via email: ... Read More