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Subject: Economic Activities

  • India’s Record Exports in FY 2025-26

    Why in News?

    India recorded its highest-ever exports of US$ 863.1 billion in FY 2025-26, driven by strong merchandise and services exports and growing benefits from recent Free Trade Agreements (FTAs), particularly with the UAE, UK, Australia, Oman and EFTA.

    Key Highlights

    • Record exports: India’s total exports reached US$ 863.1 billion in FY 2025-26.
      • Merchandise exports: US$ 441.8 billion
      • Services exports: US$ 421.3 billion
    • Top FTA export destinations:
      • ASEAN: US$ 38.4 billion
      • UAE (CEPA): US$ 37.4 billion
      • SAFTA: US$ 25.8 billion
      • UK (CETA): US$ 13.4 billion
      • Singapore (CECA): US$ 11.9 billion
    • Recent FTAs boosted exports:
      • UAE CEPA: 4.45 lakh Certificates of Origin issued; export tariff lines increased from 7,546 to 8,053.
      • Australia ECTA: Certificates of Origin rose from 1,482 (FY21) to an average 45,500+ annually after implementation.
      • Mauritius CECPA: Export tariff lines increased by 20.9%.
      • Oman CEPA: June 2026 exports grew 54.7% month-on-month and 189.6% year-on-year.
      • India-EFTA TEPA: Over 7,885 Certificates of Origin issued since October 2025.
    • Labour-intensive sectors benefited most: Textiles & apparel, Leather & footwear, Gems & jewellery, Marine products, Carpets, Handicrafts, Agricultural products
    • Trade facilitation initiatives:
      • Trade e-Connect: Provides market intelligence, tariff information, Rules of Origin guidance and FTA advisory.
      • Trade Intelligence & Analytics (TIA) Portal: Offers commodity-wise trade analytics and real-time export monitoring.

    Significance

    • Diversifies export markets and products.
    • Enhances global value chain integration.
    • Boosts manufacturing and employment in labour-intensive industries.
    • Improves India’s competitiveness through preferential tariff access.

    [2023] Consider the following statements:
    Statement-I: India accounts for 3.2% of global export of goods.
    Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India’s Production-linked Incentive’ scheme.
    Which one of the following is correct in respect of the above statements?

    [A] Both Statement-I and Statement-II are correct and Statement-ll is the correct explanation for Statement-I.

    [B] Both Statement-I and Statement-II are correct and Statement-l is not the correct explanation for Statement-I.

    [C] Statement-l is correct but Statement-II is incorrect.

    [D] Statement-I is incorrect but Statement-II is correct.

  • NITI Aayog Trade Watch Quarterly (Q4 FY 2025-26)

    Why in News?

    NITI Aayog released the 8th edition of “Trade Watch Quarterly” (Jan-Mar 2026), highlighting India’s trade performance and focusing on the pharmaceutical sector.

    India’s Trade Performance

    • Total merchandise and services trade: $1.84 trillion in FY 2025-26 (↑5.4% YoY).
    • Exports: Grew by 4.2%.
    • Imports: Grew by 6.5%.
    • Services exports: Increased by 9.0%, maintaining a strong services surplus.
    • India remained the 8th largest services exporter in 2025.
    • Services exports recorded a CAGR of 10.3% (2015-2025), higher than the global average.

    Pharmaceutical Sector

    • Global pharmaceutical and API market estimated at $1.3 trillion (2025).
    • India’s pharmaceutical and API exports reached $35.8 billion.
    • India is a leading supplier of Generic medicines, Vaccines, and Essential therapeutics

    Challenges

    • Export basket remains concentrated in generic formulations and retail medicaments.
    • Limited presence in biologics, biosimilars, immunologicals, and advanced therapeutics.
    • Continued dependence on imported Active Pharmaceutical Ingredients (APIs) and intermediates, especially from China.

    Leading Pharmaceutical States

    • Telangana, Gujarat, and Maharashtra
    • These states lead in production, exports, and integration into global pharmaceutical value chains.

    Way Forward

    • Expand into high-value pharmaceutical segments.
    • Strengthen domestic API manufacturing.
    • Increase investments in R&D, technology, and skill development.
    • Improve regulatory efficiency and market access.

    Active Pharmaceutical Ingredient (API)

    • The biologically active component of a medicine responsible for its therapeutic effect.
    • APIs are combined with excipients to produce the final dosage form.

    Biologics

    • Medicines produced from living organisms or biological processes.
    • Examples include monoclonal antibodies, vaccines, and recombinant proteins.

    [2021] With reference to international trade of India, which of the following statements are correct:
    1.The Top 3 export destinations of India are – USA, UAE, China.
    2.The Top 3 exports from India include – Petroleum Products, Drug Formulations, Agricultural Products.
    3.Agricultural exports have consistently risen from 2016-17 to 2021-22.
    4.India’s merchandise exports are less than its merchandise imports.
    Select the correct code from the options given below:

    [A] 1 and 4

    [B] 1 and 3

    [C] 2 and 4

    [D] 1, 2, 3 and 4

  • Consider the following statements

    Consider the following statements:
    Statement I: Circular economy reduces the emissions of greenhouse gases.
    Statement II: Circular economy reduces the use of raw materials as inputs.
    Statement III: Circular economy reduces wastage in the production process.

    Which one of the following is correct in respect of the above statements?

  • Periodic Labour Force Survey (PLFS) Monthly Bulletin, May 2026

    Why in the news?

    The National Statistical Office (NSO) released the PLFS Monthly Bulletin for May 2026, showing a marginal softening in labour market conditions, while urban unemployment fell to its lowest level in one year.

    Key Highlights (15 years and above, Current Weekly Status)

    Labour Force Participation Rate (LFPR)

    • Overall LFPR: 54.4%
      • April 2026: 55.0%
      • May 2025: 54.8%
    • Rural LFPR: 56.6%
    • Urban LFPR: 49.8%

    Female LFPR

    • Overall female LFPR: 32.8%
    • Rural female LFPR: 36.7%
    • Urban female LFPR: 24.8%
    • Urban female participation remained broadly stable compared to the previous month.

    Worker Population Ratio (WPR)

    • Overall WPR: 51.4%
      • April 2026: 52.2%
      • May 2025: 51.7%
    • Rural WPR: 53.8%
    • Urban WPR: 46.6%
    • Urban WPR remained largely unchanged.

    Unemployment Rate (UR)

    • Overall UR: 5.5%
    • Rural UR: 5.1%
    • Urban UR: 6.4%
      • April 2026: 6.6%
      • May 2025: 6.9%
    • Urban unemployment reached its lowest level since May 2025.

    Urban Unemployment

    • Female urban UR: 8.2%
    • Male urban UR: 5.9% (unchanged from April 2026).

    About PLFS

    • Conducted by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI).
    • It is India’s primary survey on employment and unemployment.
    • Since January 2025, the methodology has been modified to provide monthly and quarterly estimates.

    [2020] With reference to the Indian economy after the 1991 economic liberalization, consider the following statements:

    1.Worker productivity (Rs. per worker at 2004 — 05 prices) increased in urban areas while it decreased in rural areas.
    2.The percentage share of rural areas in the workforce steadily increased.
    3.In rural areas, the growth in non-farm economy increased.
    4.The growth rate in rural employment decreased.

    Which of the statements given above is/are Correct?
    a) 1 and 2 only
    b) 3 and 4 only
    c) 3 only
    d) 1, 2 and 4 only

  • Which of the following activities constitute real sector in the economy

    Which of the following activities constitute real sector in the economy ?
    1. Farmers harvesting their crops
    2. Textile mills converting raw cotton into fabrics
    3. A commercial bank lending money to a trading company
    4. A corporate body issuing Rupee Denominated Bonds overseas
    Select the correct answer using the code given below :

  • With reference to the sectors of the Indian economy, consider the following pairs

    With reference to the sectors of the Indian economy, consider the following pairs:
    Economic activity Sector
    1. Storage of agricultural produce Secondary
    2. Dairy farm Primary
    3. Mineral exploration Tertiary
    4. Weaving cloth Secondary
    How many of the pairs given above are correctly matched?

  • With reference to physical capital in Indian economy, consider the following pairs

    With reference to physical capital in Indian economy, consider the following pairs:
    Items : Category
    1. Farmer’s plough : Working capital
    2. Computer : Fixed capital
    3. Yarn used by the weaver : Fixed capital
    4. Petrol : Working capital
    How many of the above pairs are correctly matched?