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August 28th Current Affairs

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Govt pushes for e-commerce exports amid US tariff hit

Govt pushes for e-commerce exports amid US tariff hit

Context

India is exploring e-commerce export models to counter a 50% US tariff, with the government consulting stakeholders on boosting e-commerce exports and allowing foreign direct investment (FDI) in inventory-led e-commerce.

Background

The government is responding to a significant US tariff on Indian goods by exploring new export avenues, particularly through e-commerce. The move aims to mitigate the economic impact and support micro, small, and medium enterprises (MSMEs).

Government Schemes and Policies

The government is promoting the e-commerce Export Hubs (ECEHs) model, which was announced in the Union Budget. This scheme aims to create a supportive ecosystem for e-commerce exports, especially for MSMEs, by providing necessary infrastructure and logistical support. The FDI policy, which currently prohibits FDI in the inventory-based model of e-commerce, is a central point of discussion. The government is considering a review of this policy to potentially ease the compliance burden for MSMEs and attract foreign investment. Other policies, such as the Foreign Trade Policy (FTP), are also being reviewed to align with the push for digital exports.

Laws & WTO Resolutions

The Foreign Exchange Management Act (FEMA) governs the inflow of FDI into India. The government’s decision on allowing FDI in the inventory-led model would necessitate changes to the existing FEMA rules. There are no direct Supreme Court verdicts on this specific issue, but related cases on FDI and e-commerce have upheld the government’s right to regulate foreign investment to protect domestic players. At the international level, India’s trade policies must align with World Trade Organization (WTO) rules on non-discrimination and market access. While WTO doesn’t have specific rules on domestic FDI regulations, trade disputes can arise if a country’s policies are seen as a barrier to trade.

Trade Experts' Views

Trade experts are divided. Proponents argue that allowing FDI in the inventory-led model will bring in significant capital, improve logistics, and provide MSMEs with access to a global customer base through established e-commerce platforms like Amazon and Flipkart. They believe this model can streamline the supply chain and reduce the cost of exports. Conversely, opponents, mainly domestic traders and some smaller manufacturers, fear that this would create an uneven playing field. They argue that large foreign players with deep pockets could monopolize the market, driving out smaller domestic retailers and manufacturers. They suggest that the government should instead focus on strengthening domestic e-commerce infrastructure and promoting Indian platforms.

Significance

This policy push is crucial for India’s economic resilience. E-commerce exports have the potential to diversify India’s export basket and reduce its dependence on traditional markets and goods. By leveraging digital platforms, MSMEs can bypass traditional trade barriers and directly reach global consumers, which is vital for employment and economic growth. The move also signals India’s intent to become a major player in the global digital economy.

Definition of Technical Terms

  • Inventory-led Model: An e-commerce business model where the company owns or controls the goods it sells and manages the entire inventory. It’s different from a marketplace model, where the platform only connects buyers and sellers without owning the goods.
  • FDI (Foreign Direct Investment): An investment made by a firm or individual in one country into business interests located in another country. It’s distinct from portfolio investment, which is a passive investment in a foreign company’s securities.
  • MSMEs (Micro, Small, and Medium Enterprises): Small businesses defined by their investment in plant and machinery or turnover. They are the backbone of the Indian economy, contributing significantly to employment and exports.

Trade Nuances

The core trade nuance is the balancing act between fostering foreign investment and protecting domestic players. While FDI can bring capital and expertise, it also poses a risk of market dominance and potential displacement of local businesses. The debate highlights the tension between free-market principles and protectionist measures. The current policy review reflects a shift towards a more liberalized approach to counter external economic pressures.

Impacts on Our Economy

Allowing FDI in the inventory-led model could lead to a surge in e-commerce exports, providing a much-needed boost to the economy, especially in the face of global trade tensions. It could also lead to job creation in logistics, technology, and related sectors. However, it might also pose a threat to small domestic retailers, who might struggle to compete with global giants on price and scale. The policy decision will have long-term implications for the structure of India’s retail and export sectors.

Challenges

The main challenge is addressing the concerns of domestic MSMEs and retailers who fear being marginalized. There is a need to create a regulatory framework that ensures fair competition and prevents monopolistic practices. Another challenge is data security and privacy, as large foreign platforms will be handling vast amounts of data related to Indian businesses and consumers. Additionally, logistical and infrastructure gaps, particularly in tier-2 and tier-3 cities, need to be addressed to ensure the benefits of e-commerce exports are widely distributed.

Way Forward

The government should adopt a phased and consultative approach. It could consider a hybrid model that allows limited FDI in inventory-led e-commerce, perhaps with a cap or specific conditions to protect domestic interests. A robust dispute resolution mechanism and a level playing field are essential. The focus should be on building a strong domestic ecosystem that complements foreign investment, rather than being supplanted by it. Investing in skilling, technology, and logistics will be key to unlocking the full potential of e-commerce exports.

Prelims MCQ

Q. Consider the following statements: 1. The e-commerce Export Hubs (ECEHs) model, announced in the Union Budget, aims to facilitate e-commerce exports primarily for large corporations. 2. The current FDI policy in India prohibits FDI in the marketplace model of e-commerce. Which of the statements given above is/are correct?

A. 1 only

B. 2 only

C. Both 1 and 2

D. Neither 1 nor 2

Mains Question

Q. Analyze the policy debate surrounding FDI in inventory-led e-commerce and its implications for India’s economy and MSMEs. (15 marks)

Govt. looking into rare earth shortage, says PM

Govt looking into rare earth shortage, says PM

Context

Prime Minister Modi’s recent comments address India’s urgent need to secure a domestic supply of rare earth minerals, which are crucial for the automotive and clean energy sectors, amid Chinese export curbs impacting Indian industries.

Background

India is highly dependent on imports of rare earth minerals, with China dominating the global supply chain. The recent restrictions by China have highlighted this vulnerability, prompting the government to prioritize self-reliance.

Government Schemes and Policies

The government’s primary initiative is the National Critical Mineral Mission (NCMM), launched in 2025 with an outlay of ₹34,300 crore over seven years. The mission aims to establish a robust framework for self-reliance in critical minerals by intensifying domestic exploration, encouraging private sector participation, and securing overseas mineral assets through public sector undertakings like KABIL. The Mines and Minerals (Development and Regulation) Amendment Act, 2023, has been a key legislative reform, giving the central government exclusive power to auction mining leases for critical minerals.

Constitutional Provisions, Rules, Laws, SC Verdicts, Global Resolutions

Mineral rights in India are governed by the Mines and Minerals (Development and Regulation) Act, 1957, and the Constitution’s Seventh Schedule places mineral development under both central and state jurisdiction. The 2023 amendment to the MMDR Act has centralized the auction process for critical minerals to streamline development. SC ruling on the allocation of natural resources highlights the state’s role as a trustee of public resources. Globally, resolutions from bodies like the International Energy Agency (IEA) emphasize the need for secure and diversified critical mineral supply chains to achieve energy transition goals.

Mining Engineer's Views

Mining engineers advocate for a multi-pronged strategy. They emphasize the need for advanced geological surveys using modern technologies like airborne surveys to accurately identify potential deposits. They also point out that India possesses some of the world’s largest monazite deposits on its coastal beaches, a key source of rare earths, which are currently underutilized. Engineers stress the importance of investing in processing and refining infrastructure, as simply extracting raw minerals is not enough; value addition occurs in the downstream processes, where China currently holds a near-monopoly. They also recommend encouraging R&D in recycling technologies to recover rare earths from electronic waste.

Significance

This push is critical for India’s national security, economic sovereignty, and climate goals. Rare earths are indispensable for high-tech industries, including defense, electronics, and electric vehicles (EVs). Securing a stable domestic supply reduces India’s dependence on foreign adversaries and strengthens its position in the global supply chain. Furthermore, it is a non-negotiable step toward achieving India’s ambitious targets for renewable energy and EV adoption, which are central to its commitment to net-zero emissions by 2070.

Definition of Technical Terms

  • Rare Earth Minerals/Elements (REEs): A group of 17 chemically similar metallic elements essential for modern technologies. They are not as “rare” in the Earth’s crust as the name suggests, but finding them in economically viable concentrations is uncommon.
  • Critical Minerals: Minerals deemed vital for a nation’s economy or national security, whose supply chains are vulnerable to disruption.
  • Swadeshi: An Indian term meaning “of one’s own country.” In this context, it promotes self-reliance and domestic production over imports.

Mineral Trade aspects

The global trade in rare earths is a geopolitical chess game. China’s dominance is not just in mining but also in the refining and processing stages, giving it immense leverage. Other countries, including the U.S. and Australia, are now actively working to create alternative supply chains. India’s strategy must involve not only domestic exploration but also international partnerships to diversify its sources and build a resilient ecosystem. The trade is highly opaque, with prices often manipulated to serve strategic interests.

Impacts on Renewable Energy

The shortage of rare earths directly impacts India’s renewable energy ambitions. Neodymium, for example, is a key component of the powerful permanent magnets used in wind turbines and EV motors. Without a secure supply, India’s plans to scale up wind energy and transition to electric vehicles would be hampered, making it difficult to meet its climate targets and fulfill its commitment under the Paris Agreement.

Challenges

The path to self-reliance is fraught with challenges. Environmental concerns are paramount, as rare earth mining is often associated with significant ecological damage. Securing a skilled workforce and the massive capital required for large-scale mining and processing infrastructure is a major hurdle. Moreover, the long lead times for mineral exploration and mine development mean that a domestic supply will not be available in the short term, requiring a dual strategy of immediate diversification and long-term domestic capacity building.

Way Forward

A “whole-of-government” approach is essential. India must accelerate its domestic exploration missions and fast-track the auctioning of mineral blocks. Simultaneously, it should forge strategic alliances with resource-rich nations like Australia and Argentina to secure overseas assets. Investing in a robust recycling infrastructure for e-waste is also a low-hanging fruit. Finally, incentivizing private sector participation through clear, stable, and investor-friendly policies will be critical to attracting the necessary capital and technology.

Prelims MCQ

Q. Consider the following statements regarding India’s National Critical Mineral Mission (NCMM) and related policies: 1. India’s NCMM primarily focuses on securing rare earth elements for its defense sector. 2. The Mines and Minerals (Development and Regulation) Amendment Act, 2023, grants state governments the exclusive power to auction mining leases for critical minerals. 3. India currently has no known reserves of rare earth elements and is entirely dependent on imports. Which of the statements given above is/are correct?

A. 1 only

B. 2 only

C. 3 only

D. None of the above

Mains Question

Q. Discuss the geopolitical and economic implications of India’s rare earth mineral strategy in a China-dominated supply chain. (10 marks)

In Jammu, unprecedented rain, deaths, and questions over Vaishno Devi yatra

In Jammu, unprecedented rain, deaths, and questions over Vaishno Devi yatra

Context

Unprecedented rainfall and a cloudburst near the Vaishno Devi shrine in Jammu’s Reasi district have led to the tragic deaths of 41 people, raising serious questions about pilgrim safety and disaster management in the region.

Background

The region of Jammu and Kashmir is highly susceptible to natural disasters due to its mountainous terrain. The recent rainfall, the heaviest on record for 24 hours, triggered a cloudburst at Adhkunwari, causing fatal flash floods and landslides. This incident highlights the growing risks faced by pilgrims and locals.

Government Schemes and Policies

The National Disaster Management Act (NDMA) of 2005 established the National Disaster Management Authority, which coordinates disaster response and mitigation efforts. The National Disaster Management Plan (NDMP) of 2016 aims to make India disaster resilient. State Disaster Management Authorities (SDMAs) and District Disaster Management Authorities (DDMAs) are responsible for implementing these policies at the local level. Other schemes include the National Flood Management Programme and the National Policy on Disaster Management.

Constitutional Provisions, Rules, Laws, SC Verdicts, NDMA Guidelines

  • Constitutional Provisions: Disaster management falls under the Concurrent List, allowing both the central and state governments to legislate.
  • National Disaster Management Act, 2005: This is the primary law governing disaster management in India. It mandates the creation of various authorities and plans to manage all phases of a disaster.
  • Rules and Laws: The Jammu and Kashmir Disaster Management Act aligns with the NDMA. Rules concerning public safety and pilgrimage management, such as those governing the Vaishno Devi yatra, must adhere to these broader legal frameworks.
  • Supreme Court Verdicts: The Supreme Court has often intervened in matters of disaster management, emphasizing the state’s duty to protect citizens’ lives, as seen in cases related to Uttarakhand floods and other natural calamities. It has stressed proactive measures over reactive ones.
  • NDMA Guidelines: NDMA has issued specific guidelines for managing various disasters, including floods, landslides, and cloudbursts. These include early warning systems, mapping of vulnerable areas, community preparedness, and infrastructure development to withstand extreme weather.

Environmentalists' Views

Environmentalists argue that the increasing frequency of such events is a direct result of anthropogenic activities. Deforestation for infrastructure projects and urbanization, coupled with unregulated construction in ecologically fragile zones, destabilizes the mountain slopes. The destruction of natural drainage systems exacerbates flash floods. They advocate for a moratorium on construction in sensitive areas and a shift towards sustainable development practices to preserve the ecological balance.

Significance

The Vaishno Devi shrine is one of India’s most popular pilgrimage sites, attracting millions of visitors annually. The safety of these pilgrims is of national importance. The recent tragedy highlights the need for robust disaster management, improved infrastructure, and a reassessment of pilgrimage routes to ensure they are safe from natural hazards.

Definition of Technical Terms

  • Cloudburst: A cloudburst is an extreme weather event characterized by a sudden, very heavy downpour of rain, often localized. It is a specific type of flash flood event.
  • Flash Flood: A flash flood is a rapid, intense flood that occurs with little to no warning, often caused by heavy rainfall from a storm or a cloudburst.
  • Cloudburst vs. Flash Flood: A cloudburst is the meteorological cause, while a flash flood is the hydrological effect.

Geological aspects

The geology of the Lesser Himalayas, where the Vaishno Devi shrine is located, is a combination of soft, easily erodible rocks like shales and sandstones. This region is seismically active and prone to landslides. The steep slopes and fragmented rock strata make the area highly vulnerable to erosion and mass movement, especially when saturated by heavy rainfall. The recent cloudburst on these unstable slopes triggered the devastating debris flow and flash flood.

Impacts on Geography

The tragedy has significantly impacted the local geography, leading to landslides that have blocked roads and disrupted normal life. Riverbeds have widened due to the increased flow of water and debris. The topography of the affected area has been altered, with new channels carved out by the powerful flash floods. The incident also highlights the vulnerability of the region’s infrastructure to such extreme events.

Challenges

  • Forecasting: Accurately forecasting localized extreme events like cloudbursts remains a significant challenge.
  • Infrastructure: The existing infrastructure, including roads and pilgrim routes, is often not built to withstand such intense weather events.
  • Enforcement: Strict enforcement of environmental regulations and building codes in ecologically sensitive areas is often lacking.

Way Forward

  • Early Warning Systems: Invest in advanced, localized weather forecasting and early warning systems.
  • Sustainable Infrastructure: Prioritize the development of disaster-resilient infrastructure using eco-friendly engineering techniques.
  • Pilgrim Management: Reassess and implement stricter safety protocols for pilgrimage routes, including real-time monitoring of weather conditions.
  • Community Preparedness: Enhance awareness and train local communities and pilgrims on disaster preparedness and response.
  • Policy Enforcement: Ensure strict implementation of environmental and building regulations to prevent further degradation of the fragile Himalayan ecosystem.

Prelims MCQ

Q. Consider the following statements regarding cloudbursts in India:
1. A cloudburst is an extreme weather event defined by a sudden, intense rainfall, typically measuring over 100 mm per hour.
2. The frequency of cloudbursts in the Himalayan region is increasing due to climate change and localized atmospheric disturbances.
Which of the statements given above is/are correct?

A. 1 only

B. 2 only

C. Both 1 and 2

D. Neither 1 nor 2

Mains Question

Q. Analyze the factors contributing to increasing natural disasters in the Himalayan region and suggest a comprehensive framework for proactive disaster management. (15 marks)

Government extends duty-free imports of cotton by three months

Government extends duty-free imports of cotton by three months

Context

In response to a steep 50% U.S. tariff on Indian goods, the government has extended the duty-free import of cotton until December 31, 2025. This move aims to lower production costs and maintain the competitiveness of India’s textile exports.

Background

The U.S. has imposed a 50% tariff on various Indian goods, including textiles, due to trade disputes. This has severely impacted Indian exporters, prompting the government to take measures to provide relief and protect the textile sector.

Government Schemes and Policies

The primary policy is the extension of the import duty exemption on raw cotton (HS 5201). This includes waiving the 5% Basic Customs Duty (BCD), the 5% Agriculture Infrastructure and Development Cess (AIDC), and a 10% Social Welfare Surcharge. By doing so, the government is providing a direct fiscal relief to textile manufacturers. This is a targeted intervention to counteract the external shock from the U.S. tariffs. It complements other potential measures being considered, such as the proposed Export Promotion Mission and reforms to the GST framework, aimed at boosting domestic consumption and providing financial assistance to exporters.

Rules, Laws, UN Resolutions

The government’s power to impose or exempt customs duties is derived from the Customs Act, 1962. This legislative power allows the Central Government to make policy changes to tariffs and duties as a tool for economic management. The Foreign Trade Policy (FTP), updated periodically, also provides the overarching framework for import and export regulations. Indian government’s trade actions must align with its commitments to the World Trade Organization (WTO), which promotes fair trade and discourages retaliatory protectionist measures, unless in a well-defined context. U.N. resolutions on global trade and sustainable development also encourage policies that support small and medium-sized enterprises (SMEs) and promote stable supply chains, which this policy aims to do.

Trade Expert's Views

Trade experts have a mixed reaction. While they welcome the move as a necessary step to reduce input costs, many believe it’s a short-term fix. They point out that the duty exemption, while helpful, doesn’t fully compensate for the massive 50% tariff on finished products. Some experts argue that the duty-free import is a strategic signal to the U.S., showing India’s willingness to make concessions on trade barriers, especially since the U.S. is a major cotton exporter. However, they emphasize that the long-term solution lies in market diversification beyond the U.S. and actively pursuing Free Trade Agreements (FTAs) with other key markets like the EU and UK to regain competitiveness.

Significance

This policy is of immense significance for India’s textile sector, which is a major contributor to both GDP and employment. The textile industry, especially the cotton value chain, provides direct employment to millions. The U.S. is one of the largest markets for Indian textiles, and the 50% tariff threatens to make Indian goods uncompetitive, potentially leading to job losses and a decline in exports. By lowering the cost of raw materials, the government is attempting to soften this blow, protect domestic employment, and prevent a complete collapse of export orders.

Definition of Technical Terms

  • Import Duty Exemption: A government waiver on taxes levied on goods brought into a country, making them cheaper for domestic producers.
  • HS 5201: The Harmonized System (HS) code for raw cotton that is not carded or combed. This international classification system is used by customs authorities worldwide to identify products for customs duties and trade statistics.
  • AIDC (Agriculture Infrastructure and Development Cess): A tax levied on certain imported goods to fund agricultural infrastructure projects in the country.

Economic Aspects

The decision has several key economic angles. Firstly, it’s a supply-side intervention, aiming to reduce production costs rather than directly subsidizing exports. Secondly, it highlights the interconnectedness of different sectors; a trade dispute in finished goods (garments) has necessitated a policy change in raw materials (cotton). Thirdly, the policy attempts to address the issue of cost-push inflation in finished textile products by stabilizing the price of a key input. Finally, it demonstrates the government’s strategic use of trade policy to manage macroeconomic shocks and protect key sectors from external headwinds.

Impacts on MSMEs

The impact on Micro, Small, and Medium Enterprises (MSMEs) is particularly significant. Many MSMEs in the textile sector operate on thin margins and are highly vulnerable to input cost fluctuations and trade disruptions. The duty-free import of cotton provides them with much-needed relief by making raw materials more affordable. This helps them stay competitive in the global market, fulfill existing orders, and prevents them from shutting down, thus safeguarding employment and economic activity at the grassroots level. Without this support, many SMEs would be priced out of the market.

Challenges

The main challenge is that this is only a partial solution. The core problem is the 50% U.S. tariff on final products, which makes Indian goods significantly more expensive for American consumers. The duty exemption on cotton only offsets a small fraction of this disadvantage. Another challenge is the sustainability of this policy. A prolonged period of duty-free imports could potentially affect domestic cotton farmers in the long run, although the current timing is in the off-season. There is also the challenge of market diversification, which is a slow and complex process.

Way Forward

The government should pursue a multi-pronged strategy. While the duty exemption is a good short-term fix, long-term solutions are needed. These include:

  • Accelerating trade negotiations with other key economies to secure more favorable market access for textiles.
  • Providing direct financial assistance and incentives to exporters to help them absorb the tariff shock.
  • Promoting innovation and technology adoption in the textile sector to improve productivity and quality.
  • Strengthening domestic consumption through policies that boost purchasing power.
  • Investing in brand-building to position Indian textiles as premium products in new markets.

Prelims MCQ

Q. Consider the following statements:
1. The government’s extension of duty-free cotton imports is a long-term solution aimed at completely nullifying the impact of the U.S. tariffs on Indian textile exports.
2. The HS 5201 classification for cotton refers to both carded and uncarded cotton, as it is a general code for all forms of the fiber.
Which of the statements given above is/are correct?

A. 1 only

B. 2 only

C. Both 1 and 2

D. Neither 1 nor 2

Mains Question

Q. Critically analyze the government’s policy of duty-free cotton imports in the context of recent global trade protectionism. (15 marks)

IIT Bombay charts path to cool data centres using deep ocean water

IIT Bombay charts path to cool data centres using deep ocean water

Context

An IIT Bombay study proposes using Deep Seawater Cooling (DSWC) for data centers, demonstrating that this method can cut energy use by 79% and significantly reduce carbon emissions, offering a sustainable alternative to conventional cooling methods.

Background

Data centers consume a significant portion of global electricity, with nearly 40% of this energy dedicated to cooling. The escalating demand for digital services necessitates a shift toward more energy-efficient and environmentally friendly cooling technologies.

Government Schemes and Policies

The Indian government has recognized the importance of energy efficiency in data centers through policies like the Draft National Data Centre Policy (2020). This policy aims to make India a global hub for data centers by providing uninterrupted and affordable power, and promoting the domestic manufacturing of IT equipment. State-level policies, such as those in Gujarat and Karnataka, also offer incentives like power tariff subsidies and capital expenditure support for green data centers. These policies create a favorable environment for the adoption of innovative solutions like DSWC, which aligns with the national focus on sustainability and energy conservation. The Bureau of Energy Efficiency (BEE) sets national energy efficiency standards, which further incentivize green technologies.

Rules, Laws, SC Verdicts, Global Resolutions

The National Data Centre Policy (2020), provides a regulatory framework that could be backed by legislative action. The National Building Code of India (NBC 2016) also incorporates energy-efficient building standards, which could be specifically tailored for data centers. The Digital Personal Data Protection Act, 2023 (DPDP Act), while focused on data security, indirectly supports domestic data center growth. Globally, the United Nations Environment Programme (UNEP) has released guidelines to curb the environmental impact of data centers, emphasizing sustainable procurement and operations. These global resolutions and guidelines provide a strong impetus for countries like India to invest in and adopt technologies that reduce carbon footprints.

Tech Scientists' Views

Tech scientists and researchers, like those at IIT Bombay, view DSWC as a game-changer for coastal regions. They highlight its potential to drastically reduce Power Usage Effectiveness (PUE), a key metric for data center efficiency. While acknowledging the high initial capital investment for pipelines and infrastructure, they point to the long-term operational savings and rapid payback period as compelling reasons for adoption. They also suggest that DSWC’s application extends beyond data centers to other energy-intensive facilities like hospitals and industrial units in coastal areas. Scientists are also exploring other cooling methods such as immersion cooling, where servers are submerged in a non-conductive liquid, as another way to improve efficiency.

Significance

This research is a significant step towards decoupling India’s digital growth from its energy consumption and carbon emissions. The projected 79% energy savings from DSWC can alleviate pressure on the national power grid, which is already strained. It offers a tangible and economically viable solution for building sustainable digital infrastructure, which is crucial for a country with a long coastline. The technology can also position India as a leader in green technology and attract foreign investment in its coastal regions.

Definition of Technical Terms

  •  Deep Seawater Cooling (DSWC): A cooling method that uses cold water from deep ocean layers as a heat sink to cool buildings or equipment on land. The cold water is pumped through pipelines to a heat exchanger, which then cools the facility’s internal water or air systems.
  •  Data Centre: A facility used to house computer systems and associated components, such as telecommunications and storage systems.
  •  Payback Period: The time it takes for an investment to generate enough cash flow to recover its initial cost.
  •  Biofouling: The accumulation of microorganisms, plants, or algae on wetted surfaces, which can block pipelines and reduce system efficiency.

Environmental aspects

DSWC, while promising, has specific environmental nuances. The process of drawing and discharging large volumes of deep ocean water could potentially impact local marine ecosystems, particularly if the discharged water is warmer than the surface water, a phenomenon known as thermal pollution. Proper design, including the use of diffusion outlets, is crucial to minimizing this impact. The manufacturing of long pipelines also has a carbon footprint. However, compared to the continuous high energy consumption and greenhouse gas emissions of traditional cooling systems, DSWC represents a significant net environmental gain over its operational life.

Impacts on Clean Energy Demand

DSWC directly contributes to reducing the demand for clean energy by minimizing the power required for cooling. While the system requires electricity to run pumps, the overall energy savings are substantial. This allows the electricity generated from renewable sources, such as solar and wind, to be used for more productive computing tasks rather than being diverted to energy-intensive cooling. By reducing the overall power load, DSWC frees up grid capacity and makes the transition to a cleaner energy grid more feasible.

Challenges

The primary challenges for DSWC are the high initial capital investment and the geographical limitations. The system is only economically viable in coastal areas with access to deep water. Additionally, the construction and maintenance of long pipelines in a harsh marine environment pose significant engineering challenges, including corrosion, biofouling, and potential damage from seismic activity or storms. The lack of a robust policy and regulatory framework specifically for this technology in India could also hinder its widespread adoption.

Way Forward

The way forward involves a collaborative effort. The government needs to create a specific policy and regulatory framework to support DSWC projects, including green financing options and subsidies. Public-private partnerships can help de-risk large-scale projects. Research institutions like IIT Bombay should continue to refine the technology, focusing on reducing capital costs and mitigating environmental risks. Furthermore, a nationwide feasibility study is needed to identify all suitable coastal and island locations for DSWC, allowing for a strategic and scalable rollout.

Prelims MCQ

Q. Consider the following statements:
1. Deep Seawater Cooling (DSWC) is a technology best suited for inland data centers due to its low operational costs.
2. The primary challenge for DSWC is the high operational energy consumption required to pump water from deep ocean layers.
Which of the statements given above is/are correct?

A. 1 only

B. 2 only

C. Both 1 and 2

D. Neither 1 nor 2

Mains Question

Q. Evaluate the feasibility of Deep Seawater Cooling as a sustainable solution for India’s growing digital infrastructure, considering its economic, environmental, and technological implications. (15 marks)

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