PIB Summaries 18 August 2025

Content

1. DEEP OCEAN MISSION
2. S&P Upgrades India’s Sovereign Rating to ‘BBB’

DEEP OCEAN MISSION

Context & Background

• Oceans & Human History: Oceans cover ~71% of Earth’s surface; yet >80% remains unexplored. They influence climate, biodiversity, energy, and economy.
• Why deep-sea exploration matters:
  • Mineral wealth (polymetallic nodules: cobalt, nickel, manganese, copper).
  • Biodiversity (microbes, flora, fauna with biotech/medical potential).
  • Energy & freshwater (OTEC, gas hydrates, desalination).
• Blue Economy (World Bank, 2017): Sustainable use of ocean resources for economic growth, improved livelihoods, and ocean ecosystem health. India included it as a 10 core growth dimension in its Vision 2030.
• Global backdrop: UN Decade of Ocean Science (2021–30) pushes nations to explore oceans sustainably.
• India’s geography advantage: 11,098 km coastline, 1382 islands, EEZ (Exclusive Economic Zone) of ~2.37 million sq. km.

Relevance : GS 3(Science and Tech,Environment )

Deep Ocean Mission (Launched: Sept 2021, MoES)

• Budget: ₹4077 crore (5 years).
• Objective: Develop technologies for sustainable deep-ocean exploration and harnessing resources to power Blue Economy.
• National ambition: Position India among elite group (USA, Russia, France, Japan, China) with deep-sea manned submersible capability.
• Key event (Aug 2025): India’s aquanauts conducted first 5000 m deep dive, collecting 100+ kg cobalt-rich polymetallic nodules.

Mission Components (6 Pillars)

1. Deep Sea Mining & Manned Submersible
   1. Development of MATSYA 6000 (HOV, 3 crew, depth: 6000 m, 12 hr op., 96 hr emergency).
   1. Extraction system for polymetallic nodules in Central Indian Ocean Basin (CIOB).
   1. Prepares India for future commercial mining (post-International Seabed Authority regulations).
2. Ocean Climate Change Advisory Services
   1. Climate models from seasonal to decadal scale.
   1. Input for fisheries, coastal tourism, disaster resilience.
3. Biodiversity & Bioprospecting
   1. Exploration of microbes, flora, fauna → applications in pharma, enzymes, nutraceuticals.
   1. Supports marine fisheries & allied services.
4. Deep Ocean Survey & Exploration
   1. Identifying hydrothermal sulphide sites & mapping polymetallic nodules.
5. Energy & Freshwater from Ocean
   1. Offshore OTEC-powered desalination plant (proof of concept).
6. Advanced Marine Station for Ocean Biology
   1. R&D incubator: ocean biology + engineering → industrial spin-offs.

Project Samudrayaan (Flagship under DOM)

• MATSYA 6000:
  • Design: Spherical titanium-alloy vessel, diameter 2260 mm, wall 80 mm, withstands 600 bar, temp -3°C.
  • Safety systems: Li-Po batteries, acoustic telephones, emergency drop-weight, bio-vests, life-support redundancy.
  • Made in India: Ti-alloy welding perfected by ISRO (LPSC), 700 trials. Tested by advanced NDE methods (TOFD, PAUT).

• Collaboration: NIOT (MoES) + VSSC (ISRO).
• Trials (2025): Dry & wet trials at L&T Shipyard, Chennai.
• International milestone: Indo-French expedition (Aug 2025) with IFREMER’s Nautile → 5000 m dive, training Indian aquanauts.

Technology & Validation

• Testing phases:
  • 8 dives (5 unmanned, 3–5 manned) validating life-support, navigation, manipulator arms, communication.
  • 2022: OMe 6000 AUV mapped PMN site (5271 m depth, 14 sq. km).
• Future roadmap:
  • 2026: Shallow water demo (500 m).
  • 2027: Deep-sea validation (6000 m).
  • 2027–28: Full-fledged scientific exploration with MATSYA 6000.

Strategic Significance

• Economic: Potential $100+ billion Blue Economy sector for India.
• Strategic: Rare Earths, cobalt (critical for EV batteries, defense, AI electronics).
• Geopolitics: Counters China’s lead in deep-sea mining (Beijing holds 4 ISA contracts).
• Technology Sovereignty: Indigenous HOV places India in exclusive club (<6 nations).
• Employment & Innovation: Marine engineering, biotechnology, offshore energy, start-ups.

Challenges & Concerns

• Ecological:
  • Deep-sea ecosystems fragile, recovery spans centuries.
  • Mining disrupts biodiversity, carbon storage.
• Legal:
  • Governed by UNCLOS + International Seabed Authority (ISA) (India holds 75,000 sq. km exploration block in CIOB).
  • Need compliance with global seabed mining code (not finalized yet).
• Financial: High costs; uncertain commercial returns.
• Technological: Ensuring long-duration crew safety, reliable communication, power endurance.
• Social: Fisherfolk displacement if coastal projects expand unchecked.

India vs World

• USA/Russia/France: Advanced manned subs (e.g., Alvin, Nautile).
• China: Fendouzhe reached 10,909 m (Mariana Trench, 2020). Leads in polymetallic nodules exploration.
• Japan: JAMSTEC – Shinkai 6500.
• India: Catching up fast → success of Matsya 6000 will be a prestige multiplier, like Chandrayaan-3 in space.

Conclusion

• Strategic & Scientific Leap: DOM places India among the few nations mastering deep-sea technologies, enhancing sovereignty in critical minerals, marine research, and ocean engineering.
• Economic & Blue Economy Potential: It can unlock resources worth billions, drive innovation, and strengthen India’s Blue Economy pillars—fisheries, biotechnology, offshore energy, and marine industries.
• Sustainability Imperative: While promising prosperity, DOM must balance exploration with ecological safeguards under global norms, ensuring oceans remain a resilient resource for future generations.

S&P Upgrades India’s Sovereign Rating to ‘BBB’

Basics & Context

• What is a sovereign credit rating?
  • An independent assessment of a country’s ability and willingness to meet debt obligations.
  • Issued by rating agencies (S&P, Moody’s, Fitch).
  • Impacts borrowing costs, FDI flows, and global investor perception.
• Who is S&P Global?
  • Standard & Poor’s Global Ratings – among the “Big Three” agencies along with Moody’s and Fitch.
  • Known for sovereign, corporate, and financial market ratings.
• Rating Scale (simplified):
  • Investment grade: AAA, AA, A, BBB.
  • Speculative (junk): BB, B, CCC, etc.
  • India’s shift: BBB- (lowest investment grade, 2007) → BBB (2025).
  • Short-term rating: A-3 → A-2 (stronger short-term repayment capacity).
• Significance of the 2025 Upgrade:
  • First upgrade in 18 years.
  • Reflects stronger fundamentals post-pandemic.
  • Aligns with India’s ambition to be a top-3 global economy by 2030.

Relevance: GS 3(Indian Economy)

Why the Upgrade Happened

• Strong GDP Growth:
  • Post-pandemic rebound → avg. 8.8% (FY22–FY24).
  • Projection: 6.8% annually next 3 years (fastest in Asia-Pacific).
• Fiscal Discipline:
  • Centre’s deficit: 4.8% (FY25), target 4.4% (FY26).
  • General govt. deficit: expected fall from 7.3% (FY26) → 6.6% (FY29).
  • Infrastructure push (~5.5% of GDP) funded without widening CAD.
• Monetary Stability:
  • Inflation kept within RBI’s 2–6% band since 2015.
  • CPI avg. 5.5% (3 yrs), but dropped to 1.6% (July 2025).
  • Repo rate eased to 5.5% (Feb–July 2025).
• External Stability:
  • Modest net external asset position.
  • CAD small, weaker rupee improving export competitiveness.

Fiscal & Debt Dynamics

• Debt Profile:
  • Pandemic spike: +9–13% of GDP debt increase.
  • Now reduced to +7.8% net debt/GDP.
• Capex Strategy:
  • Union govt. capex: ₹11.2 trillion (3.1% of GDP, FY26).
  • Public investment (centre + states): ~5.5% of GDP.
  • Focus: infra, logistics, energy transition.
• Quality of Spending:
  • Shift from subsidies to capital formation.
  • Credibility reinforced as deficits fall while infra rises.

Economic & Financial Implications

• Lower Borrowing Costs:
  • Sovereign bonds → cheaper global loans.
  • Spillover → lower corporate & bank borrowing costs.
• Investor Confidence:
  • Higher FPI/FII inflows into debt & equity.
  • Lower country risk premium → India more attractive vs EM peers.
• Multiplier Effect:
  • Capital inflows → rupee stability.
  • Stronger balance of payments → forex reserves rise.
  • More funds for infra & job creation.

Global Context & Comparisons

• India’s position: BBB is still lowest rung of mid-tier investment grade.
• Peers:
  • Higher-rated: China (A+), Korea (AA), Singapore (AAA).
  • Similar: Indonesia (BBB), Philippines (BBB+).
• Implication: India has broken stagnation, but still needs reforms to climb higher.

Risks & Challenges

• Debt Burden: Public debt ~83–85% of GDP (high vs peers).
• Banking/NPAs: Though reduced, PSU banks’ health remains uneven.
• Employment Generation: Growth needs to translate into jobs; rating agencies wary if jobless growth persists.
• Global Headwinds: Oil shocks, US Fed policy tightening, geopolitical risks (Red Sea, Russia-Ukraine, China-Taiwan).
• Inflation Risks: Currently low, but commodity cycles could reverse.
• Structural Bottlenecks: Land, labour, judicial delays, infra project execution.

Conclusion

• Validation of Reforms: The upgrade reflects India’s resilient growth, prudent fiscal consolidation, and inflation stability, marking global recognition of its policy credibility.
• Catalyst for Investment: Improved rating lowers borrowing costs and boosts investor confidence, enabling capital inflows for infrastructure and job creation.
• Way Forward: Sustaining this momentum requires deeper structural reforms, managing debt prudently, and ensuring growth translates into inclusive development.