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Type: Prelims Only

  • RBI’s Dollar Inflows Keep India’s Bond Yields Under Control

    Why in News?

    India’s 10-year government bond yield rose only 8 basis points in six months, compared with much larger increases in major advanced and emerging economies. The RBI relied more on foreign exchange and liquidity management than policy-rate hikes.

    Key Concepts

    1. FCNR(B) Deposits

    • FCNR(B) = Foreign Currency Non-Resident (Bank) deposits.
    • Term deposits held by NRIs in permitted foreign currencies.
    • Principal and interest are repaid in the same foreign currency, protecting depositors from exchange-rate risk.
    • Banks can bring these foreign currency funds into India and swap them with the RBI.
    • This increases forex reserves and rupee liquidity.
    • It is a borrowed inflow with fixed maturity, not permanent capital.

    2. 10-Year Benchmark Bond Yield

    • Return earned on the most actively traded 10-year government security.
    • Bond price and yield move inversely:
      • Bond price ↓ → Yield ↑
      • Bond price ↑ → Yield ↓
    • It influences pricing of corporate bonds and long-term loans.
    • 1 basis point = 0.01 percentage point.

    3. RBI’s Policy Corridor

    The overnight money-market rate operates within a corridor around the repo rate.

    • MSF → Upper ceiling; banks borrow from RBI.
    • SDF → Lower floor; banks park surplus funds with RBI.
    • The corridor is 25 basis points on either side of the repo rate.

    4. Certificate of Deposit

    • A short-tenor negotiable money-market instrument issued by banks to raise funds.
    • Rising CD issuance can indicate credit growth exceeding deposit growth.
    • Falling issuance suggests deposits are sufficient to finance lending.

    5. Bloomberg Global Aggregate Index

    • A global benchmark bond index tracked by passive funds.
    • Inclusion of Indian government bonds would lead index-tracking funds to purchase Indian bonds.
    • India’s inclusion was deferred, postponing potential index-driven inflows.

    What Did the RBI Do?

    • Instead of aggressively raising the policy rate, the RBI used targeted measures to attract foreign currency:
      • FCNR(B) deposits
      • External Commercial Borrowings
      • Overseas foreign-currency borrowings
    • These measures attracted about $56.8 billion between 8 June and 13 August, with $52.3 billion through FCNR(B).

    Impact on Banking Liquidity

    • Overnight rates moved below the repo rate towards the SDF floor.
    • Deposits increased.
    • Banks relied less on market borrowing.
    • Certificate of Deposit issuance declined.
    • Banking-system surplus liquidity increased.

    “[2022] With reference to the Indian economy, consider the following statements:
    1. If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities.
    2. If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market.
    3. If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars.
    Which of the statements given above are correct?
    (a) 1 and 2 only
    (b) 2 and 3 only
    (c) 1 and 3 only
    (d) 1, 2 and 3

  • Gaganyaan vs ISS: India’s Mission Is About Proving Indigenous Technology

    Why in the News

    The Indian astronaut who flew on Axiom Mission 4 has described Gaganyaan as a prototype mission built to prove technology, test systems and communicate with the ground, unlike the International Space Station flight, which was an established mission of experiments and return. The distinction separates having flown from owning the capability to fly. Axiom Space owned no hardware, while the Indian Space Research Organisation (ISRO) is building the capsule and the spacecraft in house.

    What is the Gaganyaan mission?

    1. About: It is India’s first human spaceflight programme, designed to carry a crew to low Earth orbit in an indigenously built crew module and return them safely.
    2. Nature of the mission: It is a prototype mission, focused on proving the technology, testing out systems and communicating with the ground, not on a defined experiment schedule.
    3. In house hardware: ISRO is building the capsule and the spacecraft in which the astronauts will travel, and launching Indian astronauts on an Indian vehicle.
    4. Engineering intensity: The work is described as heavy engineering, with robust processes and review mechanisms being set up around it.
    5. Status: The programme is scheduled over the next year or two, and preparation is currently ground based.

    What was Axiom Mission 4?

    1. About: It was a commercial crewed mission to the International Space Station, on which an Indian became only the second Indian in space and the first in over four decades.
    2. Duration: The Indian crew member spent 20 days at the International Space Station after a launch on 25 June.

    What is microgravity?

    1. About: It is the condition of near weightlessness experienced in orbit, where objects and fluids behave differently from how they behave on the ground.
    2. Why it matters for training: Microgravity cannot be simulated on the ground, so the environment is encountered fully only in flight.

    Why is the Axiom model not comparable to the Gaganyaan model?

    1. Axiom owned no hardware: Axiom Space is a private company coordinating missions to space and did not own any of the hardware used.
    2. Station ownership: The International Space Station is owned by NASA and its international partners, not by the mission coordinator.
    3. Vehicle ownership: The crew flew in SpaceX’s Crew Dragon vehicle, launched by the Falcon 9 rocket, both owned by SpaceX.
    4. ISRO’s position: India is attempting to make the hardware in house and launch its own astronauts in its own capsule, which is a different nature of work.
    5. Consequence: The two programmes cannot be compared, because one buys access to space and the other builds the means of access.

    What did India actually gain from the Axiom flight?

    1. Stated objective: The primary objective of the mission was to learn as much as possible and use that experience to enable India’s own mission.
    2. Observation team: An ISRO team was present alongside the astronaut to observe how operations were run.
    3. End to end exposure: The team witnessed the end to end execution of an entire crewed mission, from preparation to recovery.
    4. Ecosystem lesson: ISRO has launched many successful missions, but human spaceflight requires a different ecosystem, and the scale of operations was the biggest learning.
    5. Disciplines identified: The flight showed the range of disciplines India must address before sending people to space and bringing them back.

    Back2Basics: International Space Station

    1. What it is: The largest crewed structure in low Earth orbit, operated as a multinational research laboratory.
    2. First module: The Zarya module was launched in 1998, with continuous human occupation since November 2000.
    3. Partners: Five participating space agencies, NASA, Roscosmos, the European Space Agency, the Japan Aerospace Exploration Agency and the Canadian Space Agency.
    4. Orbit: It orbits at roughly 400 km altitude, completing an orbit in about 90 minutes and around 16 orbits a day.
    5. Function: It hosts microgravity research in biology, human physiology, materials science and Earth observation.
    6. Retirement: The station is planned for controlled deorbit around 2030 to 2031, which is driving commercial station projects.

    Government Initiatives

    1. Indian Space Policy, 2023: Opens the space sector to non government entities across the value chain and redefines the roles of ISRO, IN-SPACe and NSIL.
    2. IN-SPACe: The Indian National Space Promotion and Authorisation Centre, a single window autonomous body that authorises and promotes private space activity.
    3. NewSpace India Limited (NSIL): The commercial arm of the Department of Space, handling technology transfer and demand driven satellite and launch missions.
    4. Gaganyaan Programme: Sanctioned in 2018 and later expanded in scope and outlay to include the first module of the Bharatiya Antariksh Station.
    5. Foreign Direct Investment reform, 2024: Liberalised FDI limits for satellite manufacturing, launch vehicles and ground segment components.
    6. SpaDeX: The Space Docking Experiment, which demonstrated autonomous docking of two Indian satellites, a prerequisite technology for a space station and crewed missions.

    Key Facts about India in Space

    1. First Indian in space: Flew aboard the Soviet Soyuz T-11 mission in 1984, spending about eight days aboard the Salyut 7 station.
    2. Second Indian in space: Flew on Axiom Mission 4 in 2025, over four decades after the first flight, spending 20 days at the International Space Station.
    3. ISRO: Established in 1969, headquartered in Bengaluru, functioning under the Department of Space.
    4. Chandrayaan 3: Made India the first country to soft land near the lunar south pole, in August 2023, with National Space Day observed on 23 August.
    5. Aditya L1: India’s first solar observatory, placed in a halo orbit around the Sun Earth Lagrange point L1.
    6. Private launch: India’s first privately built rocket flew a suborbital mission in November 2022, marking the entry of startups into launch services.

    “[2025] Consider the following space missions:
    I. Axiom-4
    II. SpaDeX
    III. Gaganyaan
    How many of the space missions given above encourage and support microgravity research?
    (a) Only one
    (b) Only two
    (c) All the three
    (d) None

  • Despite reputation, India’s per-unit space launch cost highest

    Why in the News

    A peer-reviewed study estimates India’s 2025 launch cost to Low Earth Orbit (LEO) at $13,302/kg, the highest among major spacefaring nations and far above the global average of $3,868/kg.

    The key distinction is between low mission cost and low cost per kilogram. India is efficient in spacecraft and mission design, but low launch frequency and limited payload capacity raise its per-kg cost.

    Cost per kg to LEO

    1. Meaning: Launch cost divided by payload mass delivered to LEO.
    2. Why important: A low-cost mission can still have a high per-kg cost if it carries a small payload.
    3. What it measures: Launch vehicle efficiency and utilisation, rather than spacecraft-design frugality.

    Experience Curve

    • An experience curve shows declining unit costs as cumulative production or launch volume increases.
    • Since 2010, the study finds a significant experience curve mainly for the US and Europe.
    • Higher launch frequency allows fixed costs to be distributed across more missions.

    Comparative Cost

    • India: $13,302/kg, Europe: $9,897/kg, Russia: $6,682/kg, China: $5,809/kg, Japan: $5,287/kg, USA: $3,225/kg, and Global average: $3,868/kg

    Why is India’s Cost High?

    1. Small vehicle bias: Smaller rockets carry limited payloads, increasing per-kg costs.
    2. Low launch cadence: India recorded only five launches in 2025.
    3. Heavy-lift gap: The 4,700 kg GSAT-N2 was launched by Falcon 9 in 2024 as it was beyond India’s available launch capability.
    4. High fixed costs: Launch infrastructure, range and workforce costs remain even with fewer launches.
    5. Limited demand: Indian satellite operators sometimes depend on foreign rideshare missions.

    Private Space Ecosystem

    • Around 400 startups have registered with IN-SPACe since 2020.
    • Skyroot Aerospace achieved India’s first privately developed orbital launch milestone.
    • Pixxel and Digantara have developed private satellite capabilities.
    • GalaxEye has booked Falcon 9 launch capacity.
    • The emerging pattern is domestic spacecraft development but foreign launch dependence.

    “[2026] Consider the following statements about involvement of private entities in India’s space programme:

    1. IN-SPACe is an autonomous agency formed to facilitate participation of private entities.

    2. Agnikul Cosmos launched the world’s first flight using 3D-printed rocket engine.

    3. Skyroot Aerospace has developed liquid fuel for GSLV.

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 2 only

    (d) 1, 2 and 3

  • Strikes on Black Sea and Sea of Azov grain terminals open a second food-price chokepoint

    Why in the News?

    A Ukrainian drone strike on 11 August destroyed two major grain export terminals at Russia’s Novorossiysk port, removing 15.6 million tonnes (mt) of annual export capacity. This opens a second global trade chokepoint alongside the Strait of Hormuz, shifting the food security crisis from a production problem to a shipping/transit blockade.

    Key Geography & Infrastructure

    • Black Sea & Sea of Azov Grain Corridor: Primary maritime route for Russian and Ukrainian agricultural exports via the Kerch Strait and Turkish Straits.
    • Novorossiysk: Major Russian Black Sea port handling bulk grain shipments.
    • Kerch Strait: The sole, narrow maritime outlet connecting the Sea of Azov to the Black Sea (a classic single point of failure).
    • Greater Odesa Port Complex: Ukraine’s main shipping hub (Odesa, Chornomorsk, Pivdennyi), handling ~90% of its agricultural exports.
    • Izmail: Ukraine’s primary Danube River port, serving as an alternative inland waterway route.

    Regional Dependence & Export Weight

    • Russian Routing: Over 80% of Russian grain exports move through Sea of Azov and Black Sea ports.
    • Ukrainian Routing: The Greater Odesa complex handles about 90% of Ukraine’s agricultural exports.
    • Global Wheat Share: Russia and Ukraine combined account for 27.4% of global wheat exports.
    • Global Sunflower Oil Share: Russia and Ukraine combined supply 61.5% of global sunflower oil shipments, the highest concentration of any commodity.
    • Other Staples: Together they control 15.8% of global barley and 12.5% of global corn shipments.

    Causes of the Global Price Shock

    1. Shipping Bottleneck, Not Output Deficit: Granaries are full in Russia and Ukraine, but cross-border strikes have created severe risk, stopping safe physical transport.
    2. Soaring Insurance Premiums: War risk cover on hulls and cargo acts as a hidden tariff, driving up freight costs and pricing out smaller buyers.
    3. Compounding EU Crop Yield Reductions (USDA Data):
      • Wheat: Projected to drop 7.5% (down to 134.2 mt).
      • Corn: Expected to drop to 50.2 mt (a nearly two-decade low).
      • Cause: Record summer heatwaves and prolonged drought cut yields across Europe.
    4. Global Repricing: CBOT wheat and corn futures rose 4–5% following the strikes. Major alternative exporters (US, Canada, Australia) saw prices surge simultaneously.

    Impact on India & Domestic Policy Measures

    Key Exposures

    • Edible Oil Risk: India is the world’s largest vegetable oil importer and heavily relies on Black Sea sunflower oil.
    • Dual Chokepoint Strain: Simultaneous disruptions in the Strait of Hormuz (energy/fertilizers) and Black Sea/Kerch Strait (food/edible oils).

    Statutory & Policy Framework

    • Essential Commodities Act, 1955: Regulates production, stock limits, and distribution of foodstuffs and edible oils.
    • National Food Security Act (NFSA), 2013: Guarantees subsidized foodgrains to ~two-thirds of India’s population.
    • Foreign Trade (D&R) Act, 1992: Legal framework for export bans, quotas, and Minimum Export Prices (MEP).
    • Customs Tariff Act, 1975: Regulates import duty structures on crude and refined edible oils.
    • Key Interventions: Open Market Sale Scheme (OMSS), Price Stabilisation Fund (PSF), Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), and the National Mission on Edible Oils – Oil Palm (NMEO-OP).

    Key Institutional Concepts

    • FAO Food Price Index: A monthly index tracking international market prices of five commodity groups (Cereals, Vegetable Oils, Dairy, Meat, Sugar), weighted by export shares. Hosted by the Food and Agriculture Organization (HQ: Rome, established 1945).
    • Chicago Board of Trade (CBOT): Premier futures exchange establishing global benchmark prices for wheat, corn, and soybeans.
    • USDA WASDE Report: World Agricultural Supply and Demand Estimates; the primary global benchmark for crop yields and trade shares.
    • Maritime Chokepoint: A narrow, strategic passage (e.g., Turkish Straits, Kerch Strait, Strait of Hormuz, Bab el-Mandeb) where high volumes of global trade pass, creating high geographical vulnerability.

    “[2024, GS3, 15 marks] Elucidate the importance of buffer stocks for stabilizing agricultural prices in India. What are the challenges associated with the storage of buffer stock? Discuss.”

    [2014] Turkey is located between

    [A] Black Sea and Caspian Sea

    [B] Black Sea and Mediterranean Sea

    [C] Gulf of Suez and Mediterranean Sea

    [D] Gulf of Aqaba and Dead Sea

  • India contracts 17 lakh tonnes of urea at $390 a tonne, a fraction of the April tender price

    Why in the News?

    India has contracted 17 lakh tonnes (1.7 mt) of imported urea at landed prices of $390.25 to $393.65 per tonne, marking a ~58% drop from the peak rates of $935 to $959 per tonne seen in the April 2026 tender. This sharp collapse highlights how heavily India’s fertiliser subsidy bill depends on external factors, ranging from West Asian energy disruptions to Chinese inventory accumulation.

    Global Urea Import Tender Mechanism

    • Nominated State Agencies: Import tenders are invited by designated state-owned canalising agencies like Rashtriya Chemicals and Fertilizers (RCF) and Indian Potash Limited (IPL).
    • Landed Price (CFR): Offers are quoted on a landed basis—covering both material cost and ocean freight to destination ports. This shifts shipping risk to the supplier.
    • Geographical Distribution: Tenders split required tonnages between the East Coast and West Coast to optimize port discharge and domestic logistics.
    • Market Signals: Bids from multiple global traders (e.g., Ameropa Group) establish the benchmark. High oversubscription indicates a loose global supply market.

    Price Trajectory & Global Supply Dynamics

    1. April Peak ($935–$959/tonne): Driven by peak war risk premiums, high global fuel prices, and Strait of Hormuz shipping anxieties.
    2. May Moderation ($444.9–$449.3/tonne): Easing immediate supply shocks.
    3. July/August Drop ($390.25–$393.65/tonne): Triggered by:
      • China’s Surplus Inventory: Domestic in-plant inventories in China surged 76% year-on-year, turning it into a major swing supplier.
      • Re-routed Supplies: Iranian material reaching markets through China.
      • Alternative Sourcing: Diversification of LNG feedstock by agencies like GAIL and IOC away from Hormuz transit routes toward the US, Oman, Norway, Angola, Congo, Indonesia, and Trinidad.

    Current Supply & Demand Position

    • Adequate Reserves: Imports reached 25.08 lakh tonnes in Q1 (April–June 2026) compared to 8.38 lakh tonnes in the previous year.
    • Domestic Production: Expanded to 71.53 lakh tonnes in Q1 2026.
    • Cropping Seasons Covered: Sufficient availability reported across both the ongoing Kharif (monsoon) season and upcoming Rabi (winter/spring) sowing.

    Challenges in India’s Fertiliser Policy

    • Subsidy Exposure: Urea sells at a statutorily controlled Maximum Retail Price (MRP), meaning any surge in landed cost directly increases the exchequer’s subsidy burden.
    • Nutrient Imbalance: Controlled urea pricing versus decontrolled phosphatic and potassic nutrients encourages over-application of nitrogen (N), skewing the ideal 4:2:1 (N:P:K) ratio.
    • Phosphate Vulnerability: While urea and LNG supply sources have been widened, Di-ammonium Phosphate (DAP) and raw intermediates (phosphoric acid, ammonia, sulphur) remain vulnerable to concentrated import sources and price spikes.
    • Feedstock Dependence: Domestic plants remain tied to imported LNG, linking production costs directly to international gas trends.

    Statutory & Regulatory Framework

    • Essential Commodities Act, 1955: Empowers the Union Government to regulate production, stock limits, supply, and pricing of fertilisers.
    • Fertiliser (Control) Order, 1985 & Movement Control Order, 1973: Governs quality standards, dealer registrations, and inter-state distribution.
    • New Urea Policy, 2015: Promotes energy efficiency in production units and mandates 100% Neem Coating of domestic urea to prevent industrial diversion.
    • Nutrient Based Subsidy (NBS) Scheme, 2010: Provides a fixed annual per-kg subsidy on N, P, K, and S for decontrolled fertilisers (DAP, MOP, Complex).
    • Direct Benefit Transfer (DBT): Releases subsidies to manufacturers only after Aadhaar-authenticated point-of-sale (PoS) transactions at retail outlets.

    Key Government Initiatives

    • PM PRANAM: Encourages States to reduce chemical fertiliser usage by sharing the resulting subsidy savings.
    • One Nation One Fertiliser: Standardises all subsidised crop nutrients under the single Bharat brand.
    • Nano Urea: Liquid alternative developed by IFFCO to lower overall bulk tonnage requirements.
    • Plant Revivals: Reactivation of closed units (Ramagundam, Gorakhpur, Sindri, Barauni, Talcher) to boost domestic capacity.
    • Coal Gasification: Talcher plant designed to produce urea using coal gasification rather than natural gas, cutting gas import reliance.

    Key Concepts

    • Urea: Solid nitrogenous fertiliser (carbamide) carrying 46% Nitrogen—the highest among solid fertilisers.
    • Di-ammonium Phosphate (DAP): Phosphatic fertiliser containing 18% Nitrogen and 46% Phosphorus.
    • Fertiliser Association of India (FAI): Industry body (est. 1955) providing production, import, and consumption stats for supply planning.
    • Muriate of Potash (MOP): Fully import-dependent nutrient; India has no commercial potash reserves.

    [2020] With reference to chemical fertilizers in India, consider the following statements:
    1. At present, the retail price of chemical fertilizers is market-driven and not administered by the Government.
    2. Ammonia, which is an input of urea, is produced from natural gas.
    3. Sulphur, which is a raw material for Phosphoric acid fertilizer, is a by-product of oil refineries.
    Which of the statements given above is/are correct?
    (a) 1 only
    (b) 2 and 3 only
    (c) 2 only
    (d) 1, 2 and 3
    Answer: (b)”

  • US Gives Private Firms Power to Hack Criminal Networks

    Why in the News

    A US presidential memorandum allows vetted private companies to participate in government-authorised offensive cyber operations against overseas transnational criminal organisations (TCOs).

    Note: Vetted private firms are privately owned companies that have passed thorough background checks by a client, usually a government agency, to prove they are safe, reliable, and qualified to do sensitive work

    What does the memorandum allow?

    1. Private participation: Selected firms can conduct hacking operations under government supervision.
    2. Permitted actions: Operations may include entering, disabling or destroying criminal networks’ systems.
    3. Oversight: Firms require government contracts, security vetting and supervision.
    4. Targets: Criminal organisations attacking US persons or interests, excluding entities formally controlled by foreign governments.

    Key Concepts

    • TCO: Criminal network operating across national borders.
    • Offensive cyber operation: Entering, disrupting or destroying another computer system.
    • Attribution: Identifying the actor responsible for a cyberattack.
    • Hacktivist: Non-state actor conducting cyber operations for political or ideological purposes.

    Why is it controversial?

    • Misattribution: Attacks may hit innocent third-party systems.
    • Collateral damage: Destructive operations can affect infrastructure in other countries.
    • Escalation: Private hacking can trigger cross-border conflicts.
    • Accountability: Commercial actors may have weaker accountability than state agencies.
    • Proxy problem: It resembles the private or proxy cyber models the US has criticised in China and Russia.

    Implications for India

    • India has no publicly declared offensive cyber doctrine.
    • Sections 43 and 66 of the IT Act, 2000 criminalise unauthorised access and damage.
    • Compromised Indian servers could become staging infrastructure for foreign cyber operations.
    • India continues to advocate state responsibility and opposition to cyber proxies at the UN.

    Prelims Pointers

    • CERT-In: National agency for cyber incident response.
    • NCIIPC: Protects Critical Information Infrastructure.
    • I4C: Coordinates India’s response to cybercrime.
    • Defence Cyber Agency: Handles cyber operations for the armed forces.
    • Section 70B, IT Act: Provides the statutory basis for CERT-In.

    [2022, GS3, 10 marks] What are the different elements of cyber security? Keeping in view the challenges in cyber security, examine the extent to which India has successfully developed a comprehensive National Cyber Security Strategy.”

    [2017] In India, it is legally mandatory for which of the following to report on cyber security incidents?
    1.Service providers
    2.Intermediaries
    3.Corporate bodies
    Select the correct answer using the code given below:

    [A] .1 and 2 only

    [B] .2 and 3 only

    [C] 1 and 3 only

    [D] 1, 2 and 3 only

  • Kashmir’s willow bat industry strains under cleft shortage, smuggling and wetland loss despite the 2025 GI tag

    Why in the News

    Kashmir’s ₹700 crore cricket bat industry supports around 50,000 livelihoods, but faces a shortage of quality willow. English willow prices have risen from ₹300 to ₹4,250 per foot since 2021.

    Key Facts

    1. Raw material: Mainly Salix alba (English willow).
    2. Industry: 195 registered manufacturers and around 150 cleft dealers.
    3. Production: Around 30 lakh bats annually.
    4. Trees: Nearly 1.2 lakh mature trees are felled annually.
    5. Maturity: Willow requires about 12 to 15 years to reach harvest maturity.
    6. Smuggling: Over 25 lakh clefts are reportedly smuggled out annually.
    7. GI Tag: Kashmir willow bats received a GI tag in 2025.

    Why is the industry facing a crisis?

    • Scarcity of quality willow
    • Wetland and spring degradation
    • Smuggling of clefts
    • Long 12 to 15 year plantation cycle
    • Inconsistent timber quality

    What does the GI Tag do?

    • Protects the Kashmir willow name from misuse.
    • Enhances product reputation and market value.
    • Provides legal protection to registered producers.
    • Does not increase willow supply or shorten the growth cycle.

    Government Response

    • Plantation of 2.2 lakh willow trees across 200 hectares.
    • Introduction of improved willow clones.
    • Identification of new plantation sites.
    • Greater farmer participation and scientific plantation management.

    Prelims Pointers

    • GI Act: Geographical Indications of Goods (Registration and Protection) Act, 1999.
    • First Indian GI: Darjeeling Tea, 2004.
    • GI validity: 10 years, renewable indefinitely.
    • GI ownership: Collective, not individually transferable.
    • Kashmir willow species: Salix alba.

    [2018] India enacted The Geographical Indications of Goods (Registration and Protection) Act, 1999 in order to comply with the obligations to
    (a) ILO
    (b) IMF
    (c) UNCTAD
    (d) WTO

  • Draft rules under the SHANTI Act open nuclear power to captive industrial use and a composite licence

    Why in the News

    The Department of Atomic Energy released draft rules under the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act on 14 August 2026, opening nuclear power generation to private and captive users. Comments are invited until 4 September 2026.

    What is the SHANTI Act?

    • Replaces the earlier state monopoly framework with a licensing regime for non-government operators.
    • Covers private participation, captive generation, foreign reactor technology, safety and nuclear liability.
    • Provides a single composite licence for building, owning, operating and decommissioning a reactor.

    Key Provisions

    1. Captive nuclear power: Industries can generate nuclear electricity mainly for their own consumption.
    2. In-principle approval: Allows land acquisition and vendor negotiations before final licensing.
    3. Foreign technology: Imported designs must be certified by the regulator in the country of origin and already operational.
    4. Nuclear liability: Operators must maintain insurance or financial security; a Nuclear Liability Fund is proposed.
    5. Eligible users: Aluminium, cement, data centres, semiconductor fabs and Artificial Intelligence (AI) facilities.

    Key Concern

    • The country-of-origin certification may speed up safety approval but restrict technology sourcing to a few countries. Requiring continued support and retaining Intellectual Property Rights (IPR) with foreign developers could also limit technology transfer and indigenous reactor design.

    India’s Nuclear Programme

    • Stage 1: Pressurised Heavy Water Reactors (PHWRs) using natural uranium.
    • Stage 2: Fast Breeder Reactors (FBRs) using plutonium.
    • Stage 3: Thorium-based reactors using Uranium-233 (U-233).
    • Target: 100 GW nuclear capacity by 2047.

    Challenges

    • Supplier liability concerns
    • Limited regulatory independence
    • Land and public acceptance
    • Uranium and fuel constraints
    • Nuclear waste management
    • High project costs and long construction timelines

    Prelims Pointers

    • DAE: Department of Atomic Energy
    • AERB: Atomic Energy Regulatory Board
    • NPCIL: Nuclear Power Corporation of India Limited
    • BHAVINI: Bharatiya Nabhikiya Vidyut Nigam Limited
    • NPT: Nuclear Non-Proliferation Treaty
    • NSG: Nuclear Suppliers Group
    • India is not a signatory to NPT and received an NSG waiver in 2008.

    [2018, GS3, 15 marks] With growing energy needs should India keep on expanding its nuclear energy programme? Discuss the facts and fears associated with nuclear energy.”

    [2020]  In India, why are some nuclear reactors kept under “IAEA safeguards” while others are not ?

    a) Some use uranium and others use thorium
    b) Some use imported uranium and others use domestic supplies
    c) Some are operated by foreign enterprises and others are operated by domestic enterprises
    d) Some are State-owned and others are privately-owned

  • WPI inflation eases to 9.78% in July, first month-on-month softening since October 2025

    Why in the News

    Wholesale Price Index (WPI) inflation eased to 9.78% in July 2026 from 9.87% in June, mainly due to lower fuel and power inflation.

    What is WPI?

    • Measures price changes of goods traded in bulk between businesses.
    • Covers only goods, not services.
    • Three groups: Primary Articles, Fuel & Power, Manufactured Products.
    • Base year: 2011-12.
    • Released by the Office of the Economic Adviser, Ministry of Commerce and Industry.
    • Weights: Manufactured Products 64.23%, Primary Articles 22.62%, Fuel & Power 13.15%.

    July 2026 Trends

    • Fuel & Power: 20.05%, down from 27.41%.
    • Manufactured Products: 8.29%, up from 7.48%.
    • Food Articles: 5.44%, marginally down from 5.49%.
    • PPI: Producer Price Index remained at 9.6%.

    WPI vs CPI

    • WPI: Wholesale prices of goods; excludes services.
    • CPI: Retail prices of goods and services; used as India’s inflation-targeting anchor.
    • CPI target: 4% with a tolerance band of ±2%.

    Why is inflation a concern?

    • Imported crude oil shocks
    • Food price volatility
    • Supply-chain constraints
    • Fertiliser import dependence
    • Input cost pressures

    “[2010] With reference to India, consider the following Statements:

    1. The Wholesale Price Index (WPI) in India is available on a monthly basis only

    2. As compared to Consumer Price Index for Industrial Workers (CPI (IW)), the WPI gives less weight to food articles.

    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.

  • White House transshipment report places India in Tier 1 of illegal transshipment risk

    Why in the News

    A White House report, The Great Transshipment Scam, places India in Tier 1 for elevated illegal transshipment risk, alleging that some Chinese goods are routed through India to evade US tariffs.

    Key Definitions

    • Illegal Transshipment: Routing goods through a third country and making minimal changes to disguise their actual country of origin and avoid tariffs.
    • Tariff Arbitrage: Earning a profit by routing goods through a country with a lower tariff.
    • Rules of Origin: Rules used to determine the country of origin of a product, generally based on where substantial transformation occurs.
    • Substantial Transformation: A manufacturing process that changes a product sufficiently to give it a new identity, character or use.
    • Screwdriver Factory: A facility that mainly assembles imported components with minimal domestic value addition.
    • Section 301: US law allowing action against foreign trade practices considered unfair or discriminatory.
    • Trade Diversion: Shifting trade flows from one country or route to another due to tariffs, restrictions or other trade barriers.

    What does the US report allege?

    • India is placed in Tier 1.
    • The Pune, Gujarat and Chennai production belt is specifically mentioned.
    • Pumps and compressors are cited as examples.
    • India, Mexico and Vietnam together accounted for an estimated $67 billion of transshipped goods in 2025.
    • No punitive action has yet been announced.

    Why does it matter for India?

    • Greater scrutiny of Indian exports.
    • China Plus One manufacturing could face stricter origin verification.
    • Dependence on Chinese components may complicate origin claims.
    • Tariff action could affect India’s access to the US market.

    [2025, GS3, 10 marks] What are the challenges before the Indian economy when the world is moving away from free trade and multilateralism to protectionism and bilateralism? How can these challenges be met?”

    [2017] Consider the following statements:
    1. India has ratified the Trade Facilitation Agreement (TFA) of WTO.
    2. TFA is a part of WTO’s Bali Ministerial Package of 2013.
    3. TFA came into force in January 2016.
    Which of the statements given above is/are correct?

    (a) 1 and 2 only

    (b) 1 and 3 only

    (c) 2 and 3 only

    (d) 1, 2 and 3