GS1 · History · Society · Geography · 3
GS1Indian Society › Population, demography & migrationMains Why in news: The Andhra Pradesh government proposed the 'Pillale Sampada' policy to shift from population control to promotion to address declining fertility rates.
The 'Pillale Sampada' (children are wealth) policy proposes financial incentives of ₹30,000 for a third child and ₹40,000 for a fourth child. The policy aims to ensure workforce availability for economic sustainability.
Prelims pointers (3)
- SchemePillale Sampada: A population management policy proposed by the Andhra Pradesh government
- FactFinancial incentives: ₹30,000 for a third child and ₹40,000 for a fourth child
- PlaceAndhra Pradesh: State implementing the 'Pillale Sampada' policy
Mains angle
Q. Discuss the demographic shift from population control to population promotion in Indian states and its implications for long-term economic sustainability.
- Demographic dividend: Balancing declining fertility rates with the need for a sustainable future workforce
- Fiscal sustainability: Evaluating the long-term viability of direct cash transfers for population growth incentives
Keywords: Demographic transition · Fertility rate · Economic sustainability · Population policy · Fiscal incentives
Why in news: Archaeologists are studying a 2,000-year-old circular stone labyrinth discovered in Maharashtra, which may indicate ancient commercial links between India and the Roman Mediterranean.
The structure was discovered in the Boramani grasslands of Solapur district, Maharashtra. It is identified as India's largest circular labyrinth and is believed to date back to the Satavahana dynasty.
Prelims pointers (2)
- FactAge: Estimated to be more than 2,000 years old
- FactCultural Link: Shares design similarities with ancient Cretan coins from the Roman period
Mains angle
Q. Discuss how archaeological discoveries like the Boramani labyrinth provide evidence for the extent of maritime trade and cultural exchange between ancient India and the Mediterranean.
- Trade route analysis: Evidence of maritime silk routes connecting Satavahana ports to Roman Mediterranean
- Cultural syncretism: Architectural parallels between Indian 'chakravyuha' concepts and Cretan coin iconography
Keywords: Satavahana dynasty · maritime trade · cultural exchange · archaeological evidence · Mediterranean links
GS1Geography › Physical geography (landforms, oceans, climate)Prelims Why in news: A study led by Cochin University of Science and Technology (Cusat) and SAC-ISRO found evidence of internal deformation within the Indian tectonic plate, challenging the long-held view of its rigidity.
The research utilized high-precision GPS data from 34 stations across India to analyze crustal movement. The study specifically focused on the Central Indian Tectonic Zone (CITZ) north of the Narmada–Son Lineament.
Prelims pointers (3)
- S&TCochin University of Science and Technology (Cusat) and Space Applications Centre (SAC-ISRO) collaborated on the tectonic plate study.
- PlaceThe study focused on the Central Indian Tectonic Zone (CITZ) north of the Narmada–Son Lineament.
- FactThe research analyzed crustal movement patterns using high-precision GPS data from 34 stations across India.
Mains angle
Q. Discuss how the discovery of internal deformation in the Indian tectonic plate alters the current understanding of seismic risk assessment in the Indian subcontinent.
- Seismic risk reassessment: Shift from rigid block models to internal deformation models for earthquake hazard mapping
- Data-driven monitoring: Integration of high-precision GPS data with satellite imagery for real-time crustal movement tracking
Keywords: tectonic plate · crustal movement · seismic risk · Narmada–Son Lineament · geophysical monitoring
GS2 · Polity · Governance · IR · 10
Why in news: Prime Minister Narendra Modi and Swedish Prime Minister Ulf Kristersson agreed to elevate India-Sweden relations to a Strategic Partnership during talks in Sweden on May 17, 2026.
The leaders discussed collaboration in AI, green mobility, and defense. Key initiatives agreed upon include the India-Sweden Science and Technology Centre and the Leadership Group for Industry Transition.
Prelims pointers (4)
- FactIndia and Sweden agreed to elevate ties to a Strategic Partnership in May 2026
- S&TIndia-Sweden Science and Technology Centre is a key initiative for deepening ties
- FactLeadership Group for Industry Transition was agreed upon to foster cooperation
- FactKey areas of collaboration include AI, green mobility, and defense
Mains angle
Q. Examine the significance of elevating bilateral ties to a Strategic Partnership in the context of India's pursuit of technological and green energy leadership.
- Technological synergy: Collaborative R&D in AI and green mobility to reduce import dependency
- Defense cooperation: Strengthening maritime and security ties against global terrorism
- Climate leadership: Joint initiatives in green mobility to meet decarbonization targets
Keywords: Strategic Partnership · Green Mobility · Technological Collaboration · Bilateral Relations · Defense Cooperation
Why in news: Prime Minister Narendra Modi is visiting Norway to discuss trade, energy supplies, and the implementation of the India-EFTA Trade and Economic Partnership Agreement (TEPA).
The India-EFTA Trade and Economic Partnership Agreement (TEPA) involves Iceland, Liechtenstein, Norway, and Switzerland and came into force in October 2025. The visit includes discussions on investments from the Norwegian Government Pension Fund and collaborations in space and digital infrastructure.
Prelims pointers (4)
- Intl. orgTEPA: Trade and Economic Partnership Agreement between India and EFTA (Iceland, Liechtenstein, Norway, Switzerland)
- FactTEPA came into force in October 2025
- PlaceNorway: Host country for PM Modi's visit in May 2026
- S&TNorway's Government Pension Fund is a key source of investment for Indian infrastructure
Mains angle
Q. Examine how the India-EFTA Trade and Economic Partnership Agreement (TEPA) contributes to India's objective of diversifying its trade partners and securing energy supplies.
- Strategic diversification: Reducing trade reliance on single markets through EFTA partnerships
- Energy security: Leveraging Nordic expertise in green sustainability and energy supply chains
- Investment synergy: Utilizing Norwegian pension funds for Indian digital and space infrastructure
Keywords: Trade Diversification · Energy Security · Strategic Partnership · Green Sustainability · Investment Synergy
Why in news: Pakistan expressed satisfaction with a supplemental award by the Permanent Court of Arbitration (PCA) regarding the Indus Waters Treaty (IWT)
The PCA supplemental award addressed maximum pondage in disputes over the Ratle and Kishenganga hydroelectric projects in occupied Kashmir. India stated it does not recognize the Court of Arbitration (CoA) and maintains its suspension of the IWT.
Prelims pointers (2)
- BodyPCA: Permanent Court of Arbitration
- FactRatle and Kishenganga: Hydroelectric projects in occupied Kashmir under dispute
Mains angle
Q. Discuss the challenges in resolving transboundary water disputes between India and Pakistan despite the existence of the Indus Waters Treaty.
- Legal impasse: India's non-recognition of the Court of Arbitration's jurisdiction over IWT disputes
- Hydrological security: Conflict over maximum pondage limits and hydroelectric project capacities
- Diplomatic friction: Impact of unilateral treaty suspensions on regional water-sharing stability
Keywords: transboundary water management · hydro-diplomacy · sovereignty · resource conflict · bilateral relations
GS2International Relations › International institutions & agencies (UN, WTO, IMF...)Prelims + Mains Why in news: The World Health Organization (WHO) declared the Ebola outbreak in the Democratic Republic of the Congo (DRC) and Uganda a public health emergency of international concern.
The outbreak involves the Bundibugyo strain of Ebola, which currently has no approved vaccine or treatment. It originated in the Ituri province of eastern DRC and has resulted in nearly 90 deaths across both countries.
Prelims pointers (4)
- BodyWHO: World Health Organization declared the outbreak a public health emergency of international concern
- FactThe Bundibugyo strain of Ebola currently has no approved vaccine or treatment
- PlaceThe outbreak originated in the Ituri province of eastern DRC
- FactNearly 90 deaths have been recorded in the DRC and Uganda outbreak
Mains angle
Q. Discuss the challenges in managing transboundary infectious disease outbreaks in regions with weak healthcare infrastructure and active conflict.
- Infrastructure deficit: Limited healthcare access in Ituri province hindering early detection and containment
- Security-Health nexus: Armed group violence complicating medical intervention and population movement monitoring
- Policy trade-off: Balancing border closure measures against the risk of hindering regional containment efforts
Keywords: Public health emergency · Transboundary disease · Regional transmission · Healthcare infrastructure · Epidemiological surveillance
Why in news: Tata Electronics and Dutch firm ASML signed a deal for a semiconductor plant in Gujarat to deepen India-Netherlands economic ties.
Tata Electronics will establish a semiconductor facility in Dholera, Gujarat. ASML will supply advanced chipmaking tools to the facility to ramp up production.
Prelims pointers (3)
- FactTata Electronics and ASML signed a semiconductor deal during PM Modi's visit.
- PlaceThe semiconductor plant is being constructed in Dholera, Gujarat.
- S&TASML is a Dutch technology giant specializing in advanced chipmaking tools.
Mains angle
Q. Discuss the significance of India's strategy to attract foreign technology and investment in the semiconductor manufacturing sector to achieve economic self-reliance.
- Supply chain resilience: Reducing dependence on external chip manufacturing through domestic production hubs
- Technology transfer: Leveraging Dutch expertise to bridge the gap in high-end semiconductor fabrication capabilities
Keywords: Semiconductor manufacturing · Technology transfer · Economic ties · Foreign Direct Investment · Strategic autonomy
Why in news: The Union Education Ministry and CBSE defended the new 'on-screen marking' system for Class 12 answer sheets, which aims to enhance transparency and reduce re-evaluation costs.
The CBSE has reduced the fee for viewing mark sheets and rechecking answers from ₹700 to ₹100. The on-screen marking system is modeled after international practices used by the International Baccalaureate (IB) and Cambridge boards.
Prelims pointers (3)
- BodyCBSE: Central Board of Secondary Education
- FactRe-evaluation fee reduction: From ₹700 to ₹100
- FactOn-screen marking system: Used by International Baccalaureate (IB) and Cambridge boards
Mains angle
Q. Discuss how the adoption of digital marking systems in national examinations can enhance transparency and address the concerns regarding the integrity of the evaluation process.
- Transparency enhancement: Real-time digital tracking of marks to minimize human bias in subjective grading
- Technological constraints: Addressing legibility issues of light-colored ink on physical sheets during digital conversion
- Accessibility: Reducing financial barriers for students seeking re-evaluation through significant fee reductions
Keywords: Transparency · Digital Transformation · Educational Governance · Standardization · Accountability
GS2Governance › Government policies & schemesPrelims Why in news: Ladakh Lieutenant Governor Vinai Kumar Saxena announced a wage rationalization reform to increase daily wages for skilled and unskilled workers in the Union Territory.
The new wage matrix sets a daily rate of ₹575 for skilled workers and ₹450 for unskilled workers. The policy aims to replace previous monthly pay scales that ranged from ₹300 to ₹500.
Prelims pointers (4)
- FactSkilled workers' daily wage: ₹575
- FactUnskilled workers' daily wage: ₹450
- SchemeDirect Benefit Transfer (DBT) will be used to credit wages into workers' bank accounts
- PostVinai Kumar Saxena is the Lieutenant Governor of Ladakh
Mains angle
Q. Discuss the significance of wage rationalization and Direct Benefit Transfer in ensuring social justice and administrative efficiency in Union Territories.
- Fiscal sustainability: Balancing increased labor costs with the Union Territory's budgetary constraints
- Transparency mechanism: Reducing leakages in public service payments through DBT integration
Keywords: Wage Rationalization · Social Justice · Direct Benefit Transfer · Union Territory Governance · Labor Welfare
Why in news: Prime Minister Narendra Modi and Dutch Prime Minister Rob Jetten visited the Afsluitdijk Dam to discuss collaboration on water management and climate-resilient infrastructure.
The Afsluitdijk Dam is a Dutch structure used for water management, flood protection, and freshwater storage. The visit occurred on May 17, 2026, with the Ministry of External Affairs (MEA) linking its technology to India's Kalpasar Project.
Prelims pointers (3)
- PlaceAfsluitdijk Dam: A Dutch dam used for flood protection and freshwater storage.
- FactKalpasar Project: An Indian infrastructure project linked by the MEA to water management technologies.
- PostRob Jetten: The Prime Minister of the Netherlands.
Mains angle
Q. Discuss how international technological collaborations in water management can enhance India's climate-resilient infrastructure and inland waterway expansion.
- Technological leapfrogging: Adopting Dutch flood-protection engineering to mitigate monsoon-related flooding in Indian plains.
- Infrastructure synergy: Integrating water management technologies with the Kalpasar Project to enhance regional connectivity.
Keywords: Climate-resilient infrastructure · Water management · Inland waterways · Technological collaboration · Flood protection
Why in news: President Ilham Aliyev of Azerbaijan and Punjab CM Maryam Nawaz discussed expanding trade and cooperation within the Pakistan-Turkiye-Azerbaiyan trilateral framework.
President Aliyev and Maryam Nawaz met in Baku during the 13th UN World Urban Forum (WUF13). They discussed cooperation in political, economic, diplomatic, and defense fields, highlighting Azerbaijan's ASAN Khidmet experience.
Prelims pointers (3)
- FactThe 13th UN World Urban Forum (WUF13) was the venue for the meeting.
- S&TASAN Khidmet is an Azerbaijani service model discussed for replication in Pakistan.
- FactThe meeting involved the Pakistan-Turkiye-Azerbaijan trilateral framework.
Mains angle
Q. Examine the significance of trilateral frameworks in enhancing the geopolitical and economic influence of middle powers in Eurasia.
- Geopolitical alignment: Strengthening the Pakistan-Turkiye-Azerbaijan axis to counter regional hegemony
- Service model replication: Leveraging Azerbaijan's ASAN Khidmet for public service delivery in Pakistan
- Trade diversification: Expanding non-traditional trade corridors through trilateral diplomatic cooperation
Keywords: Trilateral framework · Geopolitical alignment · Interregional cooperation · Public service delivery · Economic diplomacy
Why in news: India's Permanent Representative to the UN, Parvathaneni Harish, flagged concerns over attacks on commercial shipping and the targeting of civilian crews in the Strait of Hormuz.
India expressed these concerns during a UNECOSOC meeting focused on safeguarding energy and supply flows. The statement followed a recent attack on an India-flagged vessel off the coast of Oman which is currently under investigation.
Prelims pointers (1)
- FactIndia-flagged vessel: The specific target of a recent attack off the coast of Oman.
Mains angle
Q. Discuss the significance of the Strait of Hormuz for India's energy security and the importance of upholding freedom of navigation in international waters.
- Maritime security: Vulnerability of commercial shipping to non-state and state-sponsored maritime threats
- Energy security: High dependence on the Strait of Hormuz for Middle Eastern crude oil imports
- Legal framework: Enforcement of international maritime laws against the targeting of civilian vessels
Keywords: Freedom of navigation · Energy security · Maritime safety · International law · Strategic waterways
GS3 · Economy · S&T · Environment · Security · 10
GS3Economy › Monetary policy, RBI & bankingPrelims + Mains Why in news: The Reserve Bank of India (RBI) intervened with billions of dollars to stabilize the rupee after it dropped over 5% due to Middle East conflict-driven oil price surges.
The Indian rupee hit record lows following a 5% depreciation triggered by Middle East conflict. The RBI responded by providing credit lines for oil importers and utilizing dollar reserves to curb the currency's slide.
Prelims pointers (3)
- FactRupee depreciation: Exceeded 5% since the start of the Middle East conflict.
- BodyReserve Bank of India (RBI): Intervened by providing credit lines to oil importers.
- FactEconomic drivers: Depreciation linked to surging oil prices, widening current account deficit, and foreign investor outflows.
Mains angle
Q. Analyze the impact of external shocks on India's current account and the role of the RBI in managing currency volatility during global energy crises.
- External vulnerability: High import reliance on crude oil exacerbates current account deficits during geopolitical shocks.
- Monetary policy trade-offs: Balancing currency stabilization against domestic inflation and capital flight pressures.
- Cost-push inflation: Depreciation-led increase in import costs for raw materials and education services.
Keywords: Current Account Deficit · Currency Volatility · External Shocks · Monetary Intervention · Cost-Push Inflation
GS3Economy › Infrastructure (energy, ports, roads, railways)Prelims Why in news: Railway Minister Ashwini Vaishnaw flagged off the SMVT Bengaluru–Lokmanya Tilak Terminus Express and announced the upcoming Vande Bharat Sleeper service between Bengaluru and Mumbai.
The Minister announced the approval of bullet train corridors connecting Bengaluru with Hyderabad and Chennai. The high-speed rail network expansion aims to reach nearly 7,000 km.
Prelims pointers (3)
- FactThe target expansion for the high-speed rail network is nearly 7,000 km.
- PlaceThe new express train connects SMVT Bengaluru and Lokmanya Tilak Terminus.
- S&TBullet train corridors are approved to connect Bengaluru with Hyderabad and Chennai.
Mains angle
Q. Discuss how the expansion of high-speed rail and modern express services can enhance regional connectivity and economic integration in Southern India.
- Logistical efficiency: Reduction in transit time between major industrial hubs like Bengaluru and Mumbai
- Infrastructure bottleneck: Requirement for specialized maintenance facilities for high-speed sleeper services
- Regional integration: Linking Bengaluru, Hyderabad, and Chennai via bullet train corridors to foster economic corridors
Keywords: Regional Connectivity · High-Speed Rail · Infrastructure Development · Logistics Efficiency · Economic Integration
GS3Economy › Infrastructure (energy, ports, roads, railways)Mains Why in news: Special Chief Secretary M.T. Krishna Babu refuted claims that the introduction of 750 electric buses in APSRTC under the PM eBus Sewa scheme will lead to privatization.
The Andhra Pradesh State Road Transport Corporation (APSRTC) is receiving 750 electric buses under the PM eBus Sewa scheme. The project uses a Gross Cost Contract (GCC) model and includes incentives of nearly ₹1,774 crore from the Centre.
Prelims pointers (4)
- SchemePM eBus Sewa: A central scheme to promote clean, sustainable urban public transport.
- FactAPSRTC is expected to receive incentives of nearly ₹1,774 crore under the PM eBus Sewa scheme.
- FactThe fleet expansion includes 750 electric buses for Andhra Pradesh.
- FactGross Cost Contract (GCC) model: The operational model used for the electric bus fleet.
Mains angle
Q. Discuss how the Gross Cost Contract model in public transport infrastructure balances the need for modernization with the protection of public sector employment.
- Operational efficiency: Balancing private fleet management with public service mandates
- Labor protection: Mitigating job insecurity during the transition to electric mobility
- Fiscal sustainability: Leveraging central grants to offset high capital costs of EV transition
Keywords: Gross Cost Contract · Public-Private Partnership · Sustainable Mobility · Fiscal Incentives · Labor Protection
GS3Economy › Industry, investment & MSMEsPrelims Why in news: Chennai Petroleum Corporation Limited (CPCL) has commenced construction of a ₹1,600 crore base stocks production unit at its Manali Refinery to reduce import reliance.
CPCL is establishing a unit to produce Group II and III lubricant base oils at its Manali Refinery. The project involves a ₹1,600 crore investment and includes upgrades to the Hydrocracker and Catalytic Dewaxing Units.
Prelims pointers (4)
- FactThe new base stocks production unit at Manali Refinery costs ₹1,600 crore.
- FactThe unit will produce Group II and III lubricant base oils.
- BodyCPCL (Chennai Petroleum Corporation Limited) is the entity establishing the production unit.
- FactThe project includes upgrades to the Hydrocracker Unit and Catalytic Dewaxing Unit.
Mains angle
Q. Discuss how the expansion of domestic lubricant base oil production contributes to India's goal of reducing import dependency in the downstream petroleum sector.
- Import substitution: Reducing foreign exchange outflow by localizing production of specialized lubricant base oils.
- Infrastructure synergy: Integration between CPCL's production units and Indian Oil Corporation Ltd's lube plant.
- Capacity expansion: Enhancing refinery throughput via Hydrocracker and Catalytic Dewaxing Unit upgrades.
Keywords: Import Substitution · Downstream Petroleum · Industrial Investment · Manufacturing Capacity · Supply Chain Localization
GS3Agriculture › Cropping patterns & irrigationPrelims Why in news: The Andhra Pradesh government launched the Jala Dhara-Jala Harathi program to rejuvenate over 7,000 tanks in Vizianagaram district to improve groundwater and irrigation.
The program targets the rejuvenation of 7,062 tanks and the development of 4,801 canals in Vizianagaram district. Key activities include strengthening bunds, removing silt, and connecting tanks to support farmers and cattle during the Kharif season.
Prelims pointers (3)
- SchemeJala Dhara-Jala Harathi: Andhra Pradesh state program for tank rejuvenation and canal development
- Fact7,062 tanks and 4,801 canals are targeted for rejuvenation/development in Vizianagaram district
- PlaceVizianagaram: District in Andhra Pradesh where the program is being implemented
Mains angle
Q. Discuss the significance of rejuvenating traditional water bodies in ensuring sustainable irrigation and groundwater recharge in drought-prone regions of India.
- Groundwater recharge: Mitigation of falling water tables through decentralized storage
- Agricultural productivity: Ensuring water availability for Kharif crops and livestock
- Siltation management: Enhancing reservoir capacity through systematic desilting and bund strengthening
Keywords: Groundwater recharge · Irrigation infrastructure · Water conservation · Sustainable agriculture · Desilting
Why in news: Families of abducted Kuki-Zo people in Manipur appealed for the release of captives after the United Naga Council (UNC) deadline expired following a brawl-triggered conflict.
The conflict between Kuki-Zo and Naga communities in Manipur's hill districts began in February following a brawl. The United Naga Council (UNC) demanded the government secure the release of Nagas missing since May 13th.
Prelims pointers (3)
- PlaceKuki-Zo and Naga communities are involved in the conflict in Manipur's hill districts
- Fact14 Kuki-Zo people were reported abducted in the hill districts
- FactThe conflict began in February following a brawl
Mains angle
Q. Examine the factors contributing to ethnic and communal violence in Northeast India and suggest measures to ensure internal security and communal harmony.
- Institutional bottleneck: Delay in mediation between tribal bodies and state home department
- Security gap: Difficulty in monitoring remote hill districts during active communal brawls
- Social friction: Breakdown of traditional peace-sharing mechanisms between Kuki-Zo and Naga communities
Keywords: Internal Security · Communal Violence · Ethnic Conflict · Peacekeeping · Human Rights
Why in news: West Bengal Minister Ashok Kirtania announced the state government's commitment to hand over 600 acres of land to the BSF within 45 days for border fencing along the Bangladesh border.
The West Bengal government, led by Chief Minister Suvendu Adhikari, authorized the transfer of approximately 600 acres of land to the Border Security Force (BSF). The project faces local resistance in the Basirhat area of North 24 Parganas district due to residents' refusal to relocate.
Prelims pointers (4)
- Fact600 acres of land authorized for transfer to BSF for border fencing.
- Fact45-day deadline set for the land handover by the West Bengal government.
- PlaceBasirhat and North 24 Parganas district are the primary locations for the fencing project.
- BodyBorder Security Force (BSF) is the agency responsible for the fence erection.
Mains angle
Q. Discuss the challenges in implementing border infrastructure projects in India, focusing on the conflict between national security requirements and the rights of local residents.
- Land acquisition friction: Balancing national security imperatives with the rehabilitation of local residents in border zones.
- Inter-agency coordination: Streamlining land handover protocols between state governments and central security forces.
- Security-Development trade-off: Addressing local resistance to infrastructure that impacts traditional livelihoods in border districts.
Keywords: Border Management · Land Acquisition · National Security · Internal Security · Infrastructure Development
GS3Economy › Infrastructure (energy, ports, roads, railways)Prelims Why in news: The Power Finance Corporation (PFC) board authorized its CMD to seek government approval for a merger with REC Limited to create a massive infrastructure financing entity.
The merger is based on a share exchange ratio determined by valuers and will maintain PFC's status as a government company. The merged entity will focus on power generation, transmission, renewable energy, and infrastructure lending.
Prelims pointers (3)
- BodyPFC: Power Finance Corporation is a major infrastructure financing institution in India
- FactThe merger will retain PFC's status as a government company
- FactThe merged entity will focus on power generation, transmission, and renewable energy
Mains angle
Q. Discuss the significance of consolidating Public Sector Undertakings (PSUs) in the power and infrastructure financing sectors for achieving India's energy transition goals.
- Capital efficiency: Economies of scale in infrastructure lending to reduce per-unit financing costs
- Strategic alignment: Unified focus on renewable energy and transmission infrastructure for national grid stability
- Regulatory oversight: Ensuring competition and transparency in the public infrastructure financing landscape
Keywords: Infrastructure financing · Public Sector Undertakings · Economies of scale · Energy transition · Capital infusion
GS3Economy › External sector, trade & FDIPrelims Why in news: The Indian government placed silver imports with 99.9% purity and semi-manufactured products under the 'restricted' category following an increase in import duties from 6% to 15%.
The government restricted imports of silver with 99.9% purity and specific semi-manufactured products. Import duties on gold and silver were recently hiked from 6% to 15%.
Prelims pointers (4)
- FactImport duty on gold and silver increased from 6% to 15%.
- FactSilver imports with 99.9% purity are now under the 'restricted' category.
- BodyRBI-authorized banks and bullion exchanges are identified as potential channels for nominated silver imports.
- Intl. orgUAE Comprehensive Economic Partnership Agreement (CEPA) includes a tariff quota mechanism for trade flows.
Mains angle
Q. Analyze the impact of import restrictions and increased duties on precious metals on India's domestic bullion market and trade dynamics.
- Market distortion: Potential increase in domestic premiums for physical silver due to restricted supply.
- Trade diversion: Shift of trade flows through regional channels like the UAE CEPA tariff quota mechanism.
- Regulatory shift: Transition toward nominated agencies like RBI-authorized banks for silver procurement.
Keywords: Import restrictions · Trade policy · Bullion market · Tariff quota · Trade diversion
GS3Economy › Capital markets & SEBIPrelims Why in news: Foreign Portfolio Investors (FPIs) recorded a record withdrawal of Rs 2.2 lakh crore from the Indian equity market in 2026, significantly exceeding 2025 outflows.
FPIs withdrew Rs 27,000 crore in May 2026 alone. The peak outflow occurred in March 2026 at Rs 1.17 lakh crore, driven by global growth uncertainty and geopolitical tensions.
Prelims pointers (4)
- FactFPI total outflow in 2026 reached Rs 2.2 lakh crore.
- FactFPI outflow in March 2026 peaked at Rs 1.17 lakh crore.
- FactFPI withdrawal in May 2026 was Rs 27,000 crore.
- FactFPI selling has led to a significant weakening of the rupee against the US dollar.
Mains angle
Q. Analyze the impact of Foreign Portfolio Investment (FPI) volatility on India's capital markets and the stability of the Indian Rupee.
- Currency volatility: Sustained FPI selling leading to significant rupee depreciation against the US dollar
- Risk appetite shift: Global geopolitical tensions and crude oil price volatility dampening emerging market investments
Keywords: Capital Flight · Portfolio Investment · Currency Depreciation · Emerging Markets · Market Volatility
Notes are generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.