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Type: Prelims Only

  • SBI Targets 25% of India’s GDP Balance Sheet

    Why in the News?

    • State Bank of India (SBI) aims to expand its balance sheet to 25% of India’s GDP by 2030 (from ~20% currently).

    What is a Bank’s Balance Sheet

    • A balance sheet shows: Liabilities + Capital = Assets

    Components

    1. Liabilities

    • Deposits
    • Borrowings
    • Other obligations

    2. Capital

    • Tier I capital
    • Tier II capital
    • Reserves

    3. Assets

    • Loans and advances
    • Investments
    • Cash balances (including with Reserve Bank of India)
    [2018] With reference to the governance of public sector banking in India, consider the following statements:
    1. Capital infusion into public sector banks by the Government of India has steadily increased in the last decade.
    2. To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected. 
    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
    [2015] With reference to ‘Basel III Accord’, sometimes seen in the news, which of the following statements is/are correct?
    1. It strives to improve the banking sector’s ability to deal with financial and economic stress and improve risk management.
    2. It aims at making the banks more capital-intensive. 
    Select the correct answer:
    (a) 1 only(b) 2 only(c) Both 1 and 2(d) Neither 1 nor 2

  • Ethanol 85 (E85) Fuel

    Why in the News?

    • Government likely to notify draft rules for E85 fuel rollout as part of alternative fuel strategy and energy security push.

    What is E85 Fuel

    • Fuel blend containing:
      • Up to 85% ethanol
      • About 15% petrol

    Current Context

    • India already implemented: E20 fuel (20% ethanol blending) nationwide (April 2026)
    • E85 will be: A separate fuel category

    Key Features of E85

    • High ethanol concentration
    • Requires:
      • Special engines (flex-fuel vehicles)
      • Dedicated fuel infrastructure

    Raw Materials for Ethanol

    • Produced from: Sugarcane, Maize, and Other grains
    • Renewable and domestically available

    Benefits of E85

    • Energy Security: Reduces dependence on crude oil imports
    • Environmental Benefits: Cleaner burning than petrol and Reduces vehicular emissions
    • Economic Benefits: Supports: Farmers and Biofuel industry

    Back2Basics

    GenerationSource MaterialContext for India
    1st Gen (1G)Edible crops (Sugarcane, Maize, Rice).Currently used for E20; raises “Food Security” concerns.
    2nd Gen (2G)Non-edible waste (Rice straw, Corn cobs, Wood chips).Promoted under PM JI-VAN Yojana to stop stubble burning.
    3rd Gen (3G)Micro-organisms like Algae.High yield, doesn’t require agricultural land.
    4th Gen (4G)Genetically modified (GM) crops.Focuses on Carbon Capture and Storage (CCS) while growing.
    [2020] According to India’s National Policy on Biofuels, which of the following can be used as raw materials for the production of biofuels?  
    1. Cassava
    2. Damaged wheat
    3. grains
    4. Groundnut seeds
    5. Horse gram
    6. Rotten potatoes
    7. Sugar beet 
    Select the correct answer using the code given below:
    (a) 1, 2, 5 and 6 only(b) 1, 3, 4 and 6 only(c) 2, 3, 4 and 5 only(d) 1, 2, 3, 4, 5 and 6

  • India’s Forest Carbon Storage Could Double

    Why in the News

    • A study published in Environmental Research: Climate suggests that India’s forests could nearly double carbon storage by 2100 under current emission trends.

    Key Findings

    • Vegetation carbon increase:
      • 35 percent under low emissions
      • 62 percent under medium emissions
      • 97 percent under high emissions
    • Growth pattern:
      • Similar till about 2030
      • Rapid increase after 2050

    Key Drivers

    1. Increased Rainfall

    • More moisture availability
    • Enhances vegetation growth

    2. Higher Atmospheric CO2

    • Improves photosynthesis
    • Increases water-use efficiency

    3. Time Lag Effect

    • Forest response is delayed:
      • About 2 years (low and medium emissions)
      • About 4 years (high emissions)

    Regional Trends

    Highest Increase

    • Desert and semi-arid regions: Rajasthan, Gujarat, and Western Madhya Pradesh

    Moderate Increase

    • Trans-Himalayas
    • Gangetic plains
    • Deccan Plateau

    Lower Increase

    • Western Ghats
    • Himalayas

    Reason:

    • Ecological saturation
    • Climatic limitations

    Important Institution

    • Forest Survey of India: Official body for forest and tree cover data. 
    Consider the following statements: (2019)
    1. As per the Law, the Compensatory Afforestation Fund Management and Planning Authority (CAMPA) exists at both National and State levels.
    2. People’s participation is mandatory in the compensatory afforestation programmes carried out under the Compensatory Afforestation Fund Act, 2016. 
    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
    In the context of mitigating the impending global warming due to anthropogenic emissions of carbon dioxide, which of the following can be potential sites for carbon sequestration? (2017)
    1. Abandoned and uneconomic coal seams.
    2. Depleted oil and gas reservoirs.Subterranean deep saline formations. 
    Select the correct answer using the code given below:
    (a) 1 and 2 only(b) 3 only(c) 1 and 3 only(d) 1, 2 and 3

  • “Yellow Line” Strategy (Israel)  

    Why in the News?

    • Israel has extended its “Yellow Line” buffer zone strategy from the Gaza Strip to southern Lebanon during ongoing conflict dynamics.

    What is the “Yellow Line”

    • A military demarcation and deployment boundary
    • Divides territory into:
      • Israeli-controlled zone
      • Local (Palestinian/Lebanese) areas
    • Marked physically by:
      • Concrete bollards
      • Tall poles at regular intervals

    Origin

    • First introduced in: October 2025 (Gaza conflict)
    • Later extended to: Southern Lebanon
    [2018] The term “two-state solution” is sometimes mentioned in the news in the context of the affairs of: 
    (a) China 
    (b) Israel 
    (c) Iraq 
    (d) Yemen

  • Corporate Social Responsibility (CSR) in India

    Why in the News?

    • CSR spending by listed companies rose by 23% in FY25, reaching about ₹22,212 crore, driven by strong profit growth.

    What is CSR

    • Corporate Social Responsibility refers to:
      • Companies investing in social, environmental, and developmental activities
    • Mandated under:
      • Companies Act, 2013 (effective April 2014)

    CSR Legal Framework

    Mandatory Requirement

    • Eligible companies must spend: At least 2% of average net profits (last 3 years)

    Applicability Criteria

    Applies to companies with:

    • Net worth ≥ ₹500 crore
    • Turnover ≥ ₹1,000 crore
    • Net profit ≥ ₹5 crore

    Key Trends (FY25)

    • CSR spending: ₹22,212 crore (up 23%)
    • Companies spending CSR: 98% compliance
    • Increase due to: Higher corporate profits

    Sector-wise Allocation

    • Highest spending: Education
    • Second: Healthcare
    • Low spending:
      • Slum development
      • Disaster management
      • Armed forces welfare
    [2024] With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements: 
    1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities. 
    2. CSR rules do not specify minimum spending on CSR activities. 
    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

  • Women in the Economy: Rising Participation, Low Leadership  

    Why in the News?

    • Female participation in India’s workforce is rising, but representation in leadership roles remains low, raising concerns for inclusive growth.

    Key Trends

    Rising Female Labour Force Participation (LFPR)

    • Female LFPR:
      • 2022: 33.9%
      • 2025: 40%
    • Still below:
      • Global average: 49%
      • Brazil: 53%
      • Vietnam: 69%

    Why Female Participation Matters

    • According to the World Bank: India needs ~8% growth to become developed by 2047
    • Low female participation: Major constraint to growth

    Economic Impact

    • Study (2018): Constituencies with women legislators: +1.8% higher economic performance

    Women in Leadership (Major Concern)

    1. Academia

    • IITs: Female faculty ~14%
    • IIMs: Range: 19% to 31%
    • Professors (India overall): ~29.5%

    2. Business & Corporate Sector

    • Female-owned establishments: ~27%
    • Women in leadership roles: Only 13 women per 100 men

    3. Corporate Boards

    • Many firms: Only 1–2 women directors
    • Women board chairpersons:
      • BSE 200: ~7%
      • NSE 500: ~5%
    • Indicates token representation

    Note: 

    • The BSE 200 is a stock market index on the Bombay Stock Exchange (BSE) in India, comprising 200 of the largest, most liquid, and highly traded companies across various sectors.
    • The Nifty 500 is a broad-based stock market index representing the top 500 companies listed on the National Stock Exchange of India (NSE) based on market capitalization and average daily turnover.
    [2024] Consider the following statements regarding ‘Nari Shakti Vandan Adhiniyam’ : 
    1. Provisions will come into effect from 18th Lok Sabha. 
    2. This will be in force for 15 years after becoming an Act. 
    3. There are provisions for the reservation of seats for Scheduled Castes Women within the quota reserved for the Scheduled Castes. 
    Which of the statements given above are correct? 
    [A] 1, 2 and 3 [B] 1 and 2 only [C] 2 and 3 only [D] 1 and 3 only

  • OCI Card Extension to 6th Generation in Sri Lanka  

    Why in the News?

    • India extended OCI card eligibility to the 6th generation of the Indian-origin community in Sri Lanka.
    • Announced during the visit of C. P. Radhakrishnan.

    What is OCI (Overseas Citizen of India)

    • A form of long-term visa status for persons of Indian origin
    • Not full citizenship, but provides:
      • Multiple-entry lifelong visa
      • Exemption from police reporting
      • Parity with NRIs in certain fields

    Key Update

    • Earlier eligibility: Up to 4th generation
    • Now extended to: 5th and 6th generation (Sri Lanka specific)
    • Based on documents issued by Sri Lankan authorities

    How “Generation” is counted

    It is counted family-wise (lineage):

    • 1st generation → Person born in India (original ancestor)
    • 2nd generation → Child of that person
    • 3rd generation → Grandchild
    • 4th generation → Great-grandchild
    • 5th generation → Next generation after that
    • 6th generation → Further descendant

    Significance

    1. Diaspora Outreach

    • Benefits: Indian-origin Tamil community (~7% of Sri Lanka population)
    • Strengthens cultural and historical ties

    2. India–Sri Lanka Relations

    • Reinforces: Neighbourhood First Policy
    • Builds goodwill and trust

    3. Strategic Diplomacy

    • India positioning as: First responder in region
    • Seen in: 2022 Sri Lankan economic crisis support
    [2021] With reference to India, consider the following statements: 
    1. There is only one citizenship and one domicile. 
    2. A Citizen by birth only can become the Head of State. 
    3. A foreigner once granted the citizenship cannot be deprived of it under any circumstance. 
    Which of the statements given above is/are correct? 
    [A] 1 only [B] 2 only [C] 1 and 3 [D] 2 and 3

  • Marine Heatwaves (MHWs) 

    Why in the News?

    • A recent study shows that tropical cyclones passing over marine heatwaves become far more destructive, leading to about 60% more billion-dollar disasters due to rapid intensification.

    What are Marine Heatwaves

    • A prolonged period of unusually high sea surface temperature
    • Duration: Days to months
    • Temperature anomaly: Typically 1°C to 3°C above normal

    Key Characteristics

    • Region-specific phenomenon
    • Defined by: Duration, Intensity, and Spatial extent

    Causes of Marine Heatwaves

    1. Climate Change

    • Oceans absorb over 90% of excess heat
    • Raises baseline temperature

    2. Weakening Winds

    • Less: Evaporation and Vertical mixing

    3. Ocean Stratification

    • Warm water trapped at surface
    • No mixing with cooler deep water

    4. Ocean Currents

    • Transport warm water to new regions

    5. Climate Oscillations

    • Example: El Niño
    • Raises sea surface temperatures
    [2020] With reference to Ocean Mean Temperature (OMT), which of the following statements is/are correct? 
    1 OMT is measured up to a depth of 26°C isotherm which is 129 meters in the southwestern Indian Ocean during January — March. 
    2 OMT collected during January – March can be used in assessing whether the amount of rainfall in monsoon will be less or more than a certain long-term mean. 
    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

  • Bank Nationalisation in India  

    Why in the News?

    • The 55th anniversary of bank nationalisation (1969) has revived debate on its long-term economic impact.

    What is Bank Nationalisation

    • Transfer of private banks into government ownership
    • Objective:
      • Align banking with national development goals
      • Move control of finance to the public sector

    Phases of Nationalisation

    Phase 1 (1955)

    • Nationalisation of Imperial Bank of India
    • Converted into: State Bank of India

    Phase 2 (1969)

    • 14 major banks nationalised
    • Criteria: Deposits ≥ ₹50 crore
    • Led by: Indira Gandhi
    • Covered about 85–90% of banking sector

    Phase 3 (1980)

    • 6 more banks nationalised
    • Increased state control over banking

    Objectives

    • Expand banking in Rural and semi-urban areas
    • Provide credit to: Agriculture, Small industries, and Weaker sections
    • Reduce: Concentration of wealth
    • Support: Planned economic development
    [2018] Consider the following events: 
    1 The first democratically elected communist party government formed in a State in India. 
    2 India’s then largest bank, ‘Imperial Bank of India’, was renamed ‘State Bank of India’. 
    3 Air India was nationalised and became the national carrier. 
    4 Goa became a part of independent India. 
    Which of the following is the correct chronological sequence of the above events? 
    a) 4 – 1 – 2 – 3
    b) 3 – 2 – 1 – 4
    c) 4 – 2 – 1 – 3
    d) 3 – 1 – 2 – 4

  • Why India Slipped to 6th Largest Economy

    Why in the News

    • According to the International Monetary Fund World Economic Outlook (2026), India slipped to the 6th-largest economy, with the United Kingdom and Japan overtaking it.

    Latest GDP Rankings (2026)

    • USA: ~$32.3 trillion
    • China: ~$20.8 trillion
    • Germany, Japan, UK, India: ~around $4 trillion range
    • Recently, India has now ranked 6th

    Key Reason: How the IMF Calculates GDP

    • IMF ranking depends on:
      • GDP in local currency
      • Exchange rate (currency vs US dollar)
    • Both factors worsened for India

    Reasons for India’s Decline

    1. Revision of GDP Data

    • New base year introduced
    • GDP revised downward:
      • ₹357 trillion → ₹345 trillion
    • Earlier estimates were overstated

    2. Rupee Depreciation

    • Indian rupee weakened against US dollar
    • Dollar also weakened against: Pound and Yen
    • Double impact:
      • India’s GDP falls in dollar terms
      • UK & Japan appear stronger

    3. Dollar-Based Ranking Effect

    • Even if real growth continues:
      • Dollar conversion reduces ranking
    • Example: India GDP revised: $4.1 trillion → $3.9 trillion

    Why the UK & Japan Overtook India

    • Stronger currencies (pound, yen)
    • India’s GDP revision downward
    • Exchange rate disadvantage

    Important Concept

    Nominal GDP vs Real Strength

    • IMF rankings use: Nominal GDP (in USD)
    • Not: Purchasing Power Parity (PPP)
    • India still ranks 3rd in PPP terms

    Future Outlook

    • IMF projection:
      • India likely to regain 4th position by 2027
      • May become 3rd largest by ~2031

    Key Insight

    • Top 2 economies (US & China) are far ahead
    • Next 4 economies (Germany, Japan, UK, India):
      • Very close (~$4 trillion range)
    • Small changes in exchange rate can change rankings
    [2019] Consider the following statements:
    1. Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods and services in different countries
    2. In terms of PPP dollars, India is the sixth largest economy in the world.
    Which of the statement given above is/are correct?
    [A] 1 only [B] 2 only [C] Both 1 and 2 [D] Neither 1 nor 2