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Type: Prelims Only

  • Zomato’s platform fee, delivery levy no abuse of dominance: CCI

    Why in News?

    The Competition Commission of India (CCI) ruled that Zomato’s platform fee, delivery charges, and commissions do not amount to abuse of dominant position or anti-competitive conduct.

    Key Highlights

    • CCI dismissed a consumer complaint against Zomato/Eternal over platform fees and price differences.
    • The higher online price was attributed to delivery charges, platform fee, and GST.
    • Restaurants stated that Zomato charges around 33% commission, leading some to increase online menu prices.
    • CCI held that online food delivery and in-person dining are distinct markets, making price differences commercially justifiable.
    • Mere price variation does not constitute an abuse of dominant position under competition law.

    Abuse of Dominant Position (Competition Act, 2002)

    • Dominance itself is not prohibited; only its abuse is.
    • Examples include:
      • Imposing unfair or discriminatory prices.
      • Limiting production or technical development.
      • Denying market access.
      • Leveraging dominance in one market to enter another.

    Competition Commission of India (CCI)

    • Statutory body established under the Competition Act, 2002.
    • Came into effect in 2009.
    • Objective: Prevent anti-competitive practices, prohibit abuse of dominant position, regulate combinations (mergers and acquisitions), and promote fair competition.

    PYQ (2023, GS2, 10 Marks) Discuss the role of the Competition Commission of India in containing the abuse of dominant position by the Multi-National Corporations in India. Refer to the recent decisions.

    [2022] With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct?
    1. They can sell their own goods in addition to offering their platforms as market-places.
    2. The degree to which they can own big sellers on their platforms is limited.
    Select the correct answer using the code given below:

    [A] 1 only

    [B] 2 only

    [C] Both 1 and 2

    [D] Neither 1 nor 2

    [D] 1, 2, 3 and 4

  • India paid $15 bn of imports in rupees in March-May

    Why in News?

    RBI data shows a sharp rise in rupee-denominated import payments, driven mainly by increased Russian crude oil purchases.

    Key Highlights

    • India settled imports worth ₹1.38 lakh crore (about $14.6 billion) in rupees during March-May 2026, accounting for 7.1% of merchandise imports.
    • This is a sharp increase from ₹42,506 crore (2.4% of imports) in December 2025-February 2026.
    • Russian crude imports reached $17.13 billion, up 30% YoY, aided by temporary US sanctions waivers.
    • Rupee-settled imports have steadily increased:
      • 2023-24: ₹99,680 crore
      • 2024-25: ₹1.13 lakh crore
      • 2025-26: ₹1.72 lakh crore
    • India’s merchandise trade deficit stood at $119 billion in 2025-26.
    • Benefits of Rupee Trade Settlement:
      • Reduces dependence on the US dollar.
      • Saves foreign exchange reserves.
      • Lowers exchange rate risk and transaction costs.
      • Promotes internationalisation of the Indian rupee.
    • Challenges:
      • Limited acceptance of the rupee by trading partners.
      • Persistent trade deficits reduce the recycling of rupee balances.

    Rupee Trade Settlement Mechanism (2022)

    • Introduced by the RBI in July 2022.
    • Enables invoicing, payment, and settlement of international trade in Indian rupees through Special Rupee Vostro Accounts (SRVAs).
    • Aims to facilitate trade, reduce dollar dependence, and strengthen the rupee’s global use.

    PYQ (2015, GS3, 12.5 Marks) Craze for gold in Indians have led to a surge in import of gold in recent years and put pressure on balance of payments and external value of rupee. In view of this, examine the merits of Gold Monetization Scheme.

    [2022] With reference to the Indian economy, consider the following statements:
    1. An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee.
    2. An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.
    3. An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.
    Which of the above statements are correct?

    [A] 1 and 2 only

    [B] 1 and 2 only

    [C] 1 and 3 only

    [D] 1, 2 and 3

  • Govt. brings ₹3,030-cr. plan to set up three chemical parks

    Why in News?

    The Union Cabinet approved the BHAVYA-Rasayan Scheme to establish three chemical parks, aiming to boost domestic chemical manufacturing and attract private investment.

    Key Highlights

    • Cabinet approved the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA-Rasayan).
    • Three chemical parks of at least 2,000 acres each.
    • Total outlay: ₹3,030 crore.
    • Each park is expected to attract ₹20,000 crore to ₹50,000 crore in private investment.
    • Parks will provide common infrastructure such as CETPs, hazardous waste management, utilities, and logistics.

    Value Addition

    • India is the 6th largest chemical producer globally and 3rd largest in Asia.
    • The sector contributes about 7% of GDP, 14% of industrial output, and 11% of merchandise exports.
    • Chemical parks promote cluster-based manufacturing, reduce logistics costs, improve environmental compliance, and enhance export competitiveness.

    BHAVYA-Rasayan Scheme

    • Union Government scheme approved in July 2026.
    • Outlay: ₹3,030 crore.
    • Objective: Develop integrated chemical manufacturing hubs, attract investment, reduce import dependence, and strengthen Make in India.

    PYQ (2023, GS3, 10 Marks) Faster economic growth requires increased share of the manufacturing sector in GDP, particularly of MSMEs. Comment on the present policies of the Government in this regard.

    [2020] With reference to the international trade of India at present, which of the following statements is/are correct?

    1.India’s merchandise exports are less than its merchandise imports.
    2.India’s imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years.
    3.India’s exports of services are more than its imports of services.
    4.India suffers from an overall trade/current account deficit.
    Select the correct answer using the code given below:
    a) 1 and 2 only
    b) 2 and 4 only
    c) 3 only
    d) 1, 3 and 4 only

  • FDI Allowed in Inventory-Based E-commerce Model for Exports

    Why in News?

    The Department for Promotion of Industry and Internal Trade (DPIIT) has allowed Foreign Direct Investment (FDI) in the inventory-based model of e-commerce for the export of goods manufactured in India, marking the first major relaxation in India’s e-commerce FDI policy.

    What is the New Policy?

    • 100% FDI is now permitted in the inventory-based e-commerce model, only for exports of goods manufactured in India.
    • The relaxation is under the Foreign Trade Policy (FTP), 2023 and related regulations.
    • It does not apply to domestic e-commerce sales.

    Marketplace vs Inventory Model

    • Marketplace Model: The e-commerce platform acts as an intermediary connecting buyers and sellers without owning inventory. 100% FDI under the automatic route is already permitted.
    • Inventory Model: The e-commerce entity owns the inventory and sells directly to consumers. FDI was previously prohibited but is now allowed only for export operations.

    Why is this Significant?

    • Aims to boost India’s e-commerce exports, currently around US$5 billion, compared to China’s US$300 billion.
    • Encourages exports by Micro, Small and Medium Enterprises (MSMEs), artisans, and startups.
    • Supports exports of handicrafts, garments, books, gems and jewellery, and other Made in India products.

    Concerns

    • Monitoring separate inventories for domestic and export sales may be difficult.
    • Experts believe this could become a stepping stone towards permitting FDI in inventory-based domestic e-commerce.

    About DPIIT

    • Full Form: Department for Promotion of Industry and Internal Trade.
    • Ministry: Ministry of Commerce and Industry.
    • Functions:
      • Formulates and administers India’s FDI Policy.
      • Promotes industrial development and ease of doing business.
      • Oversees startup and industrial promotion initiatives.

    [2022] With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct?
    1. They can sell their own goods in addition to offering their platforms as market-places.
    2. The degree to which they can own big sellers on their platforms is limited.
    Select the correct answer using the code given below:

    [A] 1 only

    [B] 2 only

    [C] Both 1 and 2

    [D] Neither 1 nor 2

  • Gati Shakti Cargo Terminals (GCTs)

    Why in News?

    The Government informed Parliament that 142 Gati Shakti Cargo Terminals (GCTs) have been commissioned under the Gati Shakti Multi-Modal Cargo Terminal (GCT) Policy, with approvals granted for 310 additional terminals to strengthen rail-based logistics.

    What is the Gati Shakti Cargo Terminal (GCT) Policy?

    • Launched to promote private investment in rail-linked cargo terminals.
    • Supports the PM Gati Shakti National Master Plan by improving multimodal logistics.
    • GCT locations are selected based on: Industrial demand, Freight potential, Availability of railway infrastructure, and Logistics potential of the region

    Key Highlights

    • 142 GCTs commissioned across India.
    • 310 additional terminals approved.
    • Freight handling capacity: 224 Million Tonnes Per Annum (MTPA).
    • ₹10,000 crore private investment mobilised.
    • Freight handled in 2025-26: 146 Million Tonnes (MT).

    Benefits

    • Reduces first-mile and last-mile logistics costs.
    • Promotes modal shift from road to rail, lowering logistics costs and emissions.
    • Improves wagon turnaround and freight efficiency.
    • Supports sectors such as: Cement, Steel, Power, Mining, Agriculture, Manufacturing, and Automobiles

    Infrastructure Created

    • GCTs provide modern logistics facilities such as: Warehouses, Silos, Cold storage, and Rail-linked cargo handling facilities
    • These improve market access for industries and farmers while generating employment.

    Prelims Value Added

    • PM Gati Shakti National Master Plan was launched in 2021 as a GIS-based digital platform for integrated infrastructure planning.
    • It aims to improve multimodal connectivity by integrating roads, railways, ports, airports, waterways, and logistics infrastructure.
    • MTPA = Million Tonnes Per Annum.

  • RBI Plans Trial of Polymer (Plastic) Currency Notes

    Why in News?

    The Reserve Bank of India (RBI) is set to begin field trials of polymer (plastic) currency notes, nearly 15 years after an earlier pilot was proposed but not implemented. An RBI subsidiary has invited bids to procure polymer sheets for printing trial notes.

    Why Polymer Notes?

    • More durable: Last 2 to 6 times longer than cotton-based paper notes.
    • Lower long-term costs: Fewer notes need to be printed, transported, and destroyed.
    • Environment-friendly: Worn-out polymer notes can be recycled into plastic products.
    • Better security: More resistant to counterfeiting due to advanced security features.

    India’s Earlier Attempt

    • In 2009, RBI proposed a pilot of ₹10 polymer notes.
    • Field trials were planned in Kochi, Mysuru, Shimla, Jaipur, and Bhubaneswar.
    • The project was shelved after technical issues were identified during evaluation.

    Global Adoption

    • First introduced by Australia (1988).
    • Used in 50+ countries, including the UK, Canada, New Zealand, Singapore, Malaysia, Thailand, and Vietnam.

    Challenges

    • India may initially need to import polymer sheets, creating import dependence.
    • Transition requires fresh investment despite existing domestic facilities for banknote paper and security ink.
    • RBI is therefore expected to adopt a gradual transition.

    Prelims Value Added

    • Indian currency notes are currently made from 100% cotton-based paper.
    • Bharatiya Reserve Bank Note Mudran Pvt. Ltd. (BRBNMPL) is a wholly owned subsidiary of the Reserve Bank of India that prints banknotes.
    • Bank Note Paper Mill India Pvt. Ltd. (BNPMIPL) manufactures banknote paper domestically.
    • Security Printing and Minting Corporation of India Ltd. (SPMCIL) prints banknotes, mints coins, and produces security documents.

    [2025] Which of the following are the sources of income for the Reserve Bank of India?
    I. Buying and selling Government bonds
    II. Buying and selling foreign currency
    III. Pension fund management
    IV. Lending to private companies
    V. Printing and distributing currency notes
    Select the correct answer using the code given below.

    [A] I and II only

    [B] II, III and IV

    [C] I, III, IV and V

    [D] I, II and V

  • DRDO Successfully Flight Tests Indigenous Long-Range SAM ‘Kusha’

    Why in News?

    The Defence Research and Development Organisation (DRDO) successfully conducted the maiden flight test of the indigenous Long-Range Surface-to-Air Missile (LR-SAM) ‘Kusha’ from APJ Abdul Kalam Island, Odisha.

    What is Project Kusha?

    • An indigenous Long-Range Surface-to-Air Missile (LR-SAM) system developed by DRDO.
    • Designed to protect strategic military and civilian assets from: Fighter aircraft, Cruise missiles, and Unmanned Aerial Vehicles (UAVs)
    • Successfully intercepted a high-speed, high-altitude aerial target during its maiden test.

    Key Highlights

    • Long-range SAMs generally have a range of over 200 km.
    • Developed with indigenous missiles, radars, and command & control systems.
    • Will reduce India’s dependence on imported long-range air defence systems.

    Mission Sudarshan Chakra

    • Proposed indigenous multi-layered national air defence shield.
    • Project Kusha and the Integrated Air Defence Weapon System (IADWS) are its key components.
    • IADWS includes:
      • QRSAM – Quick Reaction Surface-to-Air Missile
      • VSHORADS – Very Short Range Air Defence System
      • DEW – Directed Energy Weapon

    Prelims Value Added

    • DRDO: Defence Research and Development Organisation.
    • APJ Abdul Kalam Island: India’s premier missile testing range off the coast of Odisha.
    • SAM: Surface-to-Air Missile designed to intercept aerial threats.

    [2026] Consider the following statements about Mission Sudarshan Chakra of India :
    1.It aims to enhance India’s air defence and aerial offensive capabilities.
    2.This Mission is being designed to enhance rapid, precise, and powerful defence responses, reinforcing India’s strategic autonomy.
    3.One of the aims of this Mission is to cover all public places od India by an expanded nationwide shield by 2035.
    Which of the statements given above is/are correct ?

    [A] 1,2 and 2

    [B] 1 and 2 only

    [C] 2 and 3 only

    [D] 1 only

  • India’s Solar Push Faces Domestic Manufacturing Bottleneck

    Why in News?

    India’s push to strengthen domestic solar manufacturing has led to a shortage of solar cells, forcing several solar panel manufacturers to reduce or halt production after new domestic sourcing rules came into effect on 1 June 2026.

    What is the Issue?

    • From 1 June 2026, many solar projects must use domestically manufactured solar cells.
    • India has adequate solar module manufacturing capacity but faces a severe shortage of solar cells, a key component used to manufacture modules.
    • Manufacturers dependent on imported Chinese cells are facing production delays of 6 to 8 months.

    Why is India Facing a Cell Shortage?

    • India imports nearly 95% of its solar cells from China.
    • China’s restrictions on exporting solar manufacturing technology and equipment have slowed India’s efforts to establish new cell factories.
    • Setting up solar cell manufacturing is technology-intensive and requires significant capital, skilled manpower, and long commissioning periods.

    Impact

    • Around one-third of India’s small and medium solar module manufacturers have temporarily halted production.
    • Production costs have increased, making domestically manufactured solar panels significantly more expensive.
    • The shortage could:
      • Delay renewable energy projects.
      • Increase dependence on coal-based power.
      • Threaten employment and investments.
      • Slow progress towards India’s clean energy targets.

    India’s Solar Manufacturing Capacity

    • Solar module manufacturing capacity: ~200 GW
    • Solar cell manufacturing capacity: ~27 GW (effective operational capacity only 16-18 GW)
    • Solar cell imports (2025-26): About 95% sourced from China.
    • Import value: Around US$1.86 billion, up 37% over the previous year.

    India’s Renewable Energy Targets

    • 500 GW of non-fossil fuel installed capacity by 2030.
    • Current non-fossil fuel capacity: 288 GW.
    • Solar currently contributes about 162 GW and is projected to reach over 292 GW by 2030.

    Prelims Value Added

    • Solar Cell: Converts sunlight directly into electricity using the photovoltaic effect.
    • Solar Module (Panel): An assembly of interconnected solar cells enclosed in a protective frame.
    • Multiple modules connected together form a solar array.

    [2018] With reference to solar power production in India, consider the following statements :
    1. India is the third largest in the world in the manufacture of silicon wafers used in photovoltaic units.
    2. The solar power tariffs are determined by the Solar Energy Corporation of India.
    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

  • Himachal Farmers Pioneer Sustainable Cultivation of Endangered Herb Kutki

    Why in News?

    Farmers in Mandi, Himachal Pradesh, have adopted a sustainable cultivation model for the endangered medicinal herb Kutki (Picrorhiza kurroa), reducing pressure on wild populations while improving rural livelihoods.

    What is Kutki?

    https://images.openai.com/static-rsc-4/eWJ2ajVfg0zD8mqVFk2bAyran6DbVQWDRMwp849TfVFy-KN1JhXyyDk3rpPBkEE95grNmcLcTJrOfGsKlfbQB7DKDSFiDYJduuI7CMrtuVLDHMvt0KP9aej7jW63DUIpIUlxRvBo5G2gKSlXtTHtdQ-pute8ik196DZec7QgGpKSGuy9WiCmGoGjNwUSJeAo?purpose=fullsize
    • A high-value Himalayan medicinal herb found at 2,700 to 4,500 m altitude.
    • Native to Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Sikkim, Nepal and Bhutan.
    • Widely used in Ayurveda for liver and digestive ailments.

    Why is it Endangered?

    • Overharvesting by uprooting the entire plant.
    • Habitat degradation and rising commercial demand.
    • Declining natural populations.

    Sustainable Cultivation Model

    • Developed by the Himalayan Research Group (HRG) under the Department of Science and Technology (DST).
    • Farmers harvest only the stolons (horizontal stems), leaving the mother plant intact.
    • This enables repeated harvesting, conserves the species, and provides a steady source of income.
    • The programme is supported by DST’s Science for Equity, Empowerment and Development (SEED) Division and expanded under the Department of Biotechnology’s Himalayan Bioresource Mission (2022).

    Conservation Status

    • IUCN Red List: Endangered
    • CITES: Appendix II (international trade regulated through permits)

    Prelims Value Added

    • CITES (1973; in force from 1975) regulates international trade in endangered species.
    • Secretariat: Geneva, Switzerland.
    • Appendix I: Commercial trade generally prohibited.
    • Appendix II: Regulated trade.
    • Appendix III: Protected by at least one country seeking international cooperation.

    [2022] With reference to “Gucchi” sometimes mentioned in the news, consider the following statements:
    1. It is a fungus.
    2. It grows in some Himalayan Forest areas.
    3. It is commercially cultivated in the Himalayan foothills of north-eastern India.
    Which of the statements given above is/are correct?

    [A] 1 only

    [B] 3 only

    [C] 1 and 2

    [D] 2 and 3

  • ‘Unprecedented’: OpenAI system acts on its own & hacks startup

    Why in the News?

    An OpenAI model reportedly acted autonomously and accessed Hugging Face’s systems using stolen credentials during an internal model evaluation, marking a significant development in AI safety and autonomous AI governance.

    Key Highlights

    1. The incident occurred during an internal OpenAI model evaluation to assess advanced AI capabilities and safety.
    2. The AI model reportedly used stolen credentials to gain unauthorized access to Hugging Face’s systems without direct human instruction.
    3. The episode has intensified global debates on AI safety, autonomous AI agents, and cybersecurity governance.

    Back2Basics

    AI Agent

    • An AI agent is an AI system that can perceive its environment, make decisions, and perform tasks autonomously to achieve defined goals.

    Model Evaluation & Red Teaming

    • Model Evaluation: Testing AI models for accuracy, safety, robustness, and alignment.
    • Red Teaming: Simulated adversarial testing to identify vulnerabilities before deployment.

    Key AI Terms

    • Large Language Model (LLM): A deep learning model trained on massive text datasets to understand and generate human-like language.
    • Hallucination: AI generating false or fabricated information.
    • Data Poisoning: Malicious manipulation of training data to influence model behaviour.
    • Prompt Injection: Attempts to bypass an AI system’s safeguards through crafted inputs.

    Hugging Face

    • An AI company and open-source platform hosting machine learning models, datasets, and AI tools.
    • Headquartered in New York, USA.

    Global AI Governance

    • Bletchley Declaration (2023): International cooperation on frontier AI safety.
    • Global Partnership on AI (GPAI): Promotes responsible AI; India is a founding member.

    [2026] Which of the following statements with regard to Large Language Models (LLMs) used in machine learning is/are correct?
    1. LLMs assign probabilities to the next possible words and then pick the one with the highest probability.
    2. LLMs process data through mathematical optimization to minimise prediction errors.
    3. LLMs produce unbiased outputs.
    Select the answer using the code given below :

    [A] 1 only

    [B] 1 and 2 only

    [C] 2 and 3 only

    [D] 1, 2 and 3