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Type: Prelims Only

  • FII Outflows and Rupee Depreciation 

    Why in the News

    Foreign investors have withdrawn ₹60,847 crore from Indian equity markets in April 2026, leading to a sharp depreciation of the Indian rupee, which touched nearly ₹95 per dollar.

    Foreign Institutional Investor (FII)

    While the terms FPI and FII are often used interchangeably, there is a technical distinction based on the 2014 SEBI regulations which merged several categories into the FPI regime.

    • Definition: FIIs are large entities (like Pension Funds, Mutual Funds, Investment Trusts) registered in a country outside India that propose to invest in Indian financial markets.
    • Consolidation: Previously, there were FIIs and QFIs (Qualified Foreign Investors). To simplify the process, SEBI introduced the Foreign Portfolio Investor (FPI) Regulations, 2014, effectively making FIIs a part of the broader FPI category.
    • Key Distinction: FPI is the investment, whereas FII is the institutional entity that performs the investment.
    FeatureFDIFPIFII
    Primary GoalManagement control & long-term growthCapital gains & dividendsInstitutional portfolio diversification
    Investment AssetPhysical assets (factories, land)Financial assets (stocks, bonds)Financial assets (stocks, bonds)
    DurationLong-termShort to Medium-termShort to Medium-term
    ComplexityHigh (involves legal & operational setup)Low (easy to trade via exchanges)Low (but requires regulatory registration)
    VolatilityVery LowHighHigh
    Who Invests?Multinational corporationsIndividuals or InstitutionsLarge organizations (e.g., Pension Funds)
    [2022] Consider the following statements: 
    1 Tight monetary policy of US Federal Reserve could lead to capital flight. 
    2 Capital flight may increase the interest cost of firms with existing External Commercial Borrowings (ECBs). 
    3 Devaluation of domestic currency decreases the currency risk associated with ECBs. 
    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

  • India’s First Green Methanol Plant 

    Why in the News

    India is set to establish its first green methanol plant at Kandla using the invasive plant Prosopis juliflora as feedstock. The project aims to produce clean marine fuel and support India’s transition to green shipping.

    About Prosopis juliflora

    • A Mexican-origin invasive species
    • Known locally as:
      • Vilayati Keekar (North India)
      • Gando Baval (Gujarat)
    • Introduced in India:
      • 1920s by British
      • Later in 1961 in Gujarat to check desertification
    • Problem:
      • Replaces native grasses
      • Harms biodiversity in Banni grasslands (Kutch)

    About Green Methanol

    • Methanol produced using renewable biomass instead of fossil fuels
    • Used as marine fuel replacing bunker oil
    • Helps reduce emissions significantly

    Key Features of the Project

    • Location: Deendayal Port Authority
    • Production capacity: 5 tonnes per day
    • Developed by: Thermax and Ankur Scientific
    • Feedstock:
      • Prosopis juliflora
      • Other biomass like bagasse and cotton stalk
    [2018] Why is a plant called Prosopis juliflora often mentioned in news? 
    (a) Its extract is widely used in cosmetics. 
    (b) It tends to reduce the biodiversity in the area in which it grows. 
    (c) Its extract is used in the synthesis of pesticides. 
    (d) None of the above.

  • Revenue Deficit and Fiscal Stress in States 

    Why in the News

    The Ministry of Finance in its Monthly Economic Review (April 2026) has warned that several Indian States with revenue deficits and high debt burdens may face fiscal stress, especially during economic shocks.

    What is Revenue Deficit

    • Occurs when revenue expenditure exceeds revenue receipts
    • Revenue expenditure includes:
      • Salaries
      • Pensions
      • Subsidies
      • Interest payments
    • Revenue receipts include:
      • Taxes
      • Fees
      • Non tax revenues

    Key Findings

    • Out of 18 major States analysed:
      • 9 States projected to have revenue deficit
      • 7 States projected to have revenue surplus
      • 1 State in revenue balance

    States with Revenue Deficit (Important)

    • Himachal Pradesh, Punjab, Kerala, Andhra Pradesh, Rajasthan, Haryana, Karnataka, Maharashtra, and Chhattisgarh.
    • Punjab has highest interest burden (22.8 percent of revenue receipts)

    States with Revenue Surplus

    • Odisha, Jharkhand, Uttar Pradesh, Goa, Gujarat, Uttarakhand, Telangana, and Bihar

    Key Concept

    • Golden Rule of Fiscal Policy
      • Governments should borrow only for capital expenditure
      • Revenue deficit should ideally be zero

    Fiscal Concerns

    • High interest payments reduce fiscal flexibility
    • Revenue deficit States may:
      • Cut productive expenditure (capital spending)
      • Seek higher central transfers
    • Limited ability to respond to economic shocks
    [2025] Suppose the revenue expenditure is ₹ 80,000 crores and the revenue receipts of the Government are ₹ 60,000 crores. The Government budget also shows borrowings of ₹ 10,000 crores and interest payments of ₹ 6,000 crores. Which of the following statements are correct? 
    I. Revenue deficit is ₹ 20,000 crores. 
    II. Fiscal deficit is ₹ 10,000 crores. 
    III. Primary deficit is ₹ 4,000 crores. 
    Select the correct answer using the code given below. 
    [A] I and II only [B] II and III only [C] I and III only [D] I, II and III

  • Supreme Court on Abortion Law for Minor Rape Victims 

    Why in the News

    The Supreme Court of India has asked the Union government to consider removing the time limit on abortion in cases involving minor rape survivors, while hearing a case allowing termination of a 30 week pregnancy of a 15 year old survivor.

    Background

    • Under the Medical Termination of Pregnancy Act, 1971 (amended in 2021):
      • Abortion allowed up to 24 weeks for special categories
        • Rape survivors
        • Minors
        • Women with disabilities

    Key Observations of the Court

    • State or doctors cannot decide for the survivor
    • Decision should rest with:
      • Survivor
      • Parents or guardians
    • Emphasised reproductive autonomy and dignity
    • Forcing continuation of pregnancy may cause lifelong trauma

    Court’s Suggestions

    • Amend law to:
      • Remove time limit for abortion in minor rape cases
      • Ensure speedy trial (within one week)
      • Provide compensation to victim (including property of accused)

    Legal and Constitutional Aspects

    Article 21

    • Right to life and personal liberty
    • Includes reproductive autonomy and bodily integrity
    • Reproductive Rights: Recognised as part of privacy and dignity

    Key Issues Highlighted

    • Conflict between: Foetal rights vs rights of the survivor
    • Importance of informed consent
    • Role of doctors: Provide medical guidance, not impose decisions

    Important Concepts

    • Medical Termination of Pregnancy (MTP): Legal framework governing abortion in India
    • Reproductive Autonomy: Right of a woman to make decisions about her body and pregnancy
    [2019] Which Article of the Constitution of India safeguards one’s right to marry the person of one’s choice? 
    (a) Article 19 (b) Article 21 (c) Article 25 (d) Article 29

  • Sabarimala Review and Religious Reform 

    Why in the News

    The Supreme Court of India, while hearing the Sabarimala review case, observed that courts cannot reform religion, even as debates continue on balancing religious freedom and constitutional rights.

    Background of the Case

    • Concerns entry of women aged 10 to 50 years into the Sabarimala Temple
    • 2018 judgment allowed entry, upholding right to worship
    • Review petitions challenge this verdict

    Key Observations by the Court

    • Courts cannot initiate religious reform
    • Reform must come from within religion or society
    • Need to balance:
      • Religious practices
      • Constitutional values

    Arguments Presented

    For Reform (Indira Jaising’s View)

    • Religion must evolve to remain relevant
    • Equality (Article 14) and dignity (Article 21) cannot be subordinate to religion
    • Religious practices must align with constitutional morality

    Concerns Raised by Judges

    • Reforms should not destroy core religious identity
    • Need to avoid excessive interference in doctrinal matters

    Key Constitutional Provisions

    • Article 14: Right to equality before law
    • Article 21: Right to life and dignity
    • Article 25: Freedom of religion and worship

    Important Legal Concepts

    • Essential Religious Practices Test
      • Determines which practices are essential to a religion
      • Only essential practices get constitutional protection
    • Constitutional Morality: Principles like equality, dignity, and justice guide interpretation of laws
    [2019] Which Article of the Constitution of India safeguards one’s right to marry the person of one’s choice? 
    (a) Article 19
    (b) Article 21
    (c) Article 25
    (d) Article 29

  • Supreme Court on Hate Speech 

    Why in the News?

    The Supreme Court of India, in an April 2026 judgment, highlighted that hate speech and rumour mongering threaten the constitutional value of fraternity, but declined to direct enactment of new laws, emphasizing effective enforcement of existing legal provisions.

    Key Observations of the Court

    • Hate speech arises from an “us versus them” mindset
    • It promotes exclusion and discrimination
    • Undermines fraternity and unity in a diverse society
    • Considered against constitutional morality and civilisational ethos
    • Linked to the idea of “Vasudhaiva Kutumbakam” (world is one family)

    Constitutional Provisions Involved

    • Article 19(1)(a): Guarantees freedom of speech and expression
    • Article 19(2): Allows reasonable restrictions on grounds like:
      • Public order
      • Decency
      • Morality
      • Sovereignty and integrity
    • Fraternity (Preamble): Ensures unity and sense of brotherhood among citizens

    Legal Position on Hate Speech

    • No single comprehensive law exclusively defining hate speech
    • Covered under various provisions:
      • Indian Penal Code sections related to
        • Promoting enmity
        • Public mischief
      • IT laws for online content

    Court’s Stand

    • Court cannot legislate new laws
    • Responsibility lies with: Legislature and Executive
    • Focus should be on better implementation of existing laws

    Key Concepts

    • Hate Speech: Speech that incites hatred, discrimination, or violence against groups
    • Fraternity: A constitutional value promoting unity, dignity, and brotherhood
    [2017] The mind of the makers of the Constitution of India is reflected in which of the following? 
    (a) The Preamble 
    (b) The Fundamental Rights 
    (c) The Directive Principles of State Policy 
    (d) The Fundamental Duties

  • Return of Trafficked Artefacts to India 

    Why in the News?

    Authorities in the United States have returned 657 trafficked antiquities worth about 14 million dollars to India. The artefacts were recovered from international smuggling networks linked to traffickers like Subash Kapoor and Nancy Wiener.

    Key Facts

    • Total artefacts returned: 657
    • Total value: 14 million dollars
    • Returned in three phases:
      • 612 artefacts in November 2024
      • 26 artefacts in July 2025
      • 19 artefacts in 2026
    • Major recovery led by investigative agencies in New York

    Important Artefacts Returned

    Buddha Sculpture

    • Material: Red sandstone
    • Value: 7.5 million dollars
    • Depicts Abhaya Mudra (gesture of protection)

    Avalokiteshvara Bronze

    • Value: 2 million dollars
    • Origin: Sirpur
    • Associated with Lakshmana Temple region

    Dancing Ganesha Sculpture

    • Origin: Temple in Madhya Pradesh
    • Smuggled through international art networks
    [2012] Lord Buddha’s image is sometimes shown with the hand gesture called ‘Bhumisparsha Mudra’. It symbolizes: (a) Buddha’s calling of the Earth to watch over Mara and to prevent Mara from disturbing his meditation. (b) Buddha’s calling of the Earth to witness his purity and chastity despite the temptations of Mara. (c) Buddha’s reminder to his followers that they all arise from the Earth and finally dissolve into the Earth, and thus this life is transitory. (d) Both (a) and (b)

  • NSO Survey on Health Seeking Behaviour 

    Why in the News?

    The National Statistical Office has released findings from its 80th round health survey (2025) showing improved health seeking behaviour in India, with higher reporting of illnesses and increased use of public healthcare services.

    Key Indicator

    Proportion of Population Reporting Ailment (PPRA)

    • Rural: 6.8 percent (2017–18) to 12.2 percent (2025)
    • Urban: 9.1 percent to 14.9 percent
      • Increase indicates greater awareness and reporting of illnesses

    Health Insurance Coverage

    • Rural: 12.9 percent to 45.5 percent
    • Urban: 8.9 percent to 31.8 percent
      • Driven by schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana

    Institutional Deliveries

    • Rural: 95.6 percent
    • Urban: 97.8 percent
      • Indicates improved maternal healthcare access

    Out of Pocket Expenditure (OOPE)

    • Median OOPE (hospitalisation): ₹11,285
    • Public facilities:
      • Hospitalisation median: ₹1,100
      • Outpatient care: Zero in many cases
    • Suggests affordability of public healthcare services

    Disease Pattern Shift

    • Decline in infectious diseases
    • Rise in Non Communicable Diseases (NCDs)
      • Diabetes
      • Cardiovascular diseases

    Utilisation of Public Healthcare

    • Rural outpatient care: 28 percent (2014) to 35 percent (2025)
    • Increase due to:
      • Free drugs and diagnostics
      • Expansion of primary healthcare services

    Survey Coverage

    • Total households surveyed: 1,39,732
      • Rural: 76,296
      • Urban: 63,436
    [2025] Consider the following statements in relation to Janani Suraksha Yojana: 
    1 It is a safe motherhood intervention of the State Health Departments. 
    2 Its objective is to reduce maternal and neonatal mortality among poor pregnant women.
    3 It aims to promote institutional delivery among poor pregnant women. 
    4 Its objective includes providing public health facilities to sick infants up to one year of age.
    How many of the statements given above are correct? 
    (a) Only one (b) Only two (c) Only three (d) All four

  • Sahayog Portal

    Why in the News

    The Delhi High Court has asked the Union government to clarify whether social media platform X Corp. must participate in the Sahayog Portal for cases related to human trafficking, child trafficking, and national security.

    About Sahayog Portal

    • Launched in October 2024
    • An online platform to enable rapid removal of illegal content from the internet
    • Facilitates direct communication between government agencies and online intermediaries
    • Nodal Ministry: Ministry of Home Affairs

    Legal Basis

    • Operates under Section 79(3)(b) of the Information Technology Act, 2000
    • Ensures intermediaries act on lawful takedown requests
    • Maintains safe harbour protection if due diligence is followed
    [2017] In India, it is legally mandatory for which of the following to report on cyber security incidents?
    1 Service providers 
    2 Data Centres 
    3 Body corporate 
    Select the correct answer using the code given below: 
    (a) 1 only (b) 2 only (c) 1 and 2 only (d) 1, 2 and 3

  • Barbary Macaque

    Why in the News

    Scientists studying the Barbary Macaque population in Gibraltar have observed geophagy (soil eating) behavior. This is believed to help them counter the harmful effects of tourist provided junk food.

    About Barbary Macaque

    • One of the 25 species of macaques worldwide
    • The only macaque species found outside Asia
    • The only non human primate in Europe and North Africa

    Distribution

    • Native range:
      • Atlas Mountains in Algeria and Morocco
    • Introduced population: Gibraltar
    • IUCN Red List: Endangered
    [2013] In which of the following states is lion-tailed macaque found in its natural habitat? 
    1 Tamil Nadu
    2 Kerala 
    3 Karnataka 
    4 Andhra Pradesh 
    Select the correct answer using the codes given below: 
    (a) 1, 2 and 3 only (b) 2 only (c) 1, 3 and 4 only (d) 1, 2, 3 and 4