Daily Current Affairs Quiz
22 May, 2026
National Affairs
1. India has abstained from voting on a United Nations General Assembly (UNGA) resolution
Context:
India has abstained from voting on a United Nations General Assembly (UNGA) resolution calling on countries to comply with their obligations on climate change, expressing concern that the draft “undermines” the “sacrosanct architecture” of the United Nations Framework Convention on Climate Change (UNFCCC). The resolution was adopted in the 193-member General Assembly with 141 votes in favour, 8 against, and 28 abstentions. In its Explanation of Vote delivered by First Secretary Petal Gahlot at India’s Permanent Mission to the UN, India clarified that it had “engaged constructively” but was “disappointed that our concerns were not addressed” — particularly its insistence that climate obligations be rooted in the UNFCCC’s principle of Common But Differentiated Responsibilities and Respective Capabilities (CBDR-RC), rather than uniform obligations across developed and developing countries. India also emphasised that adoption of the resolution does not create binding commitments for India — reinforcing that UNGA resolutions are recommendatory.
Key Highlights
- Forum: UN General Assembly — 193 members.
- Voting result: 141 in favour, 8 against, 28 abstentions (incl. India).
- India’s vote: Abstention.
- India’s stated reason: Resolution “undermines” the “sacrosanct architecture” of the UNFCCC.
- India’s EOV: Delivered by First Secretary Petal Gahlot — said adoption does NOT create binding commitments for India.
- Resolution welcomed: July 2025 unanimous ICJ Advisory Opinion on States’ obligations on climate change.
- Origin of ICJ opinion: Initiated by Vanuatu and Pacific Island states, requested via UNGA resolution in March 2023, hearings in December 2024.
- Strategic context: Reflects the CBDR-RC vs harmonised-obligations divide in global climate diplomacy.
About the News
What has India done?
India has abstained from a UNGA resolution on climate-change obligations, citing concerns that it undermines the UNFCCC’s core architecture — particularly the CBDR-RC principle.
What is India’s core objection?
That the resolution flattens differences between developed and developing countries, understates historical emissions of the developed world, dilutes climate-finance obligations of rich nations, and shifts toward uniform climate obligations for all.
Are UNGA resolutions binding?
No. UNGA resolutions are recommendatory in nature. India specifically reiterated that adoption of this resolution does not create binding commitments for it.
What is the July 2025 ICJ Advisory Opinion?
A landmark unanimous Advisory Opinion by the International Court of Justice — initiated by Vanuatu and Pacific Island states — which held that states have obligations under international law (UNFCCC, Paris Agreement, UNCLOS, customary international law, human rights law) to protect the climate system, and that failure to act could constitute an internationally wrongful act potentially attracting reparations.
Why is CBDR-RC central to India’s position?
Because it recognises that developed countries bear greater historical responsibility for emissions and must therefore lead on mitigation and finance, while developing countries retain policy space for their development needs. India sees uniform obligations as unjust and inequitable.
Background Concepts (Q&A)
What is the UNFCCC?
The United Nations Framework Convention on Climate Change — adopted at the 1992 Rio Earth Summit, in force since 1994. It is the foundational international treaty on climate change with 198 Parties and is implemented through annual Conferences of Parties (COPs).
What is the CBDR-RC principle?
Common But Differentiated Responsibilities and Respective Capabilities — the core equity principle of UNFCCC. It recognises that all countries share responsibility for climate action but developed countries bear greater obligations due to historical emissions and capacity.
What is the Paris Agreement?
A 2015 global climate treaty under the UNFCCC, with goals to limit warming to well below 2°C (and ideally 1.5°C) above pre-industrial levels, operating through Nationally Determined Contributions (NDCs) — country-set climate targets.
What is the International Court of Justice (ICJ)?
The principal judicial organ of the UN, based in The Hague, with 15 judges. It handles two types of cases: contentious cases (between states, binding) and Advisory Opinions (for UN organs, non-binding but authoritative).
What is India’s climate position?
(a) Net-zero by 2070 (announced at COP26 Glasgow). (b) Per-capita emissions principle. (c) Developed countries’ historical responsibility. (d) Climate finance as central obligation. (e) Leadership through International Solar Alliance, CDRI, LIFE (Lifestyle for Environment), Mission LiFE.
Practice MCQs
Q1. With reference to India’s abstention on the recent UNGA climate resolution, consider the following statements:
- The resolution was adopted with 141 votes in favour, 8 against, and 28 abstentions.
- India’s main concern was that the resolution undermines the sacrosanct architecture of the UNFCCC.
- India stated that adoption of the resolution by the UNGA does not create binding commitments for India.
- The resolution welcomed the July 2025 unanimous Advisory Opinion of the International Court of Justice.
How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None
Q2. Consider the following statements about the UNFCCC and the Paris Agreement:
- The UNFCCC was adopted at the 1992 Rio Earth Summit.
- The CBDR-RC principle is the core equity principle of the UNFCCC.
- The Paris Agreement was adopted in 2015 and operates through Nationally Determined Contributions (NDCs).
- The UNFCCC has 198 Parties.
Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Q3. Consider the following statements about the International Court of Justice (ICJ):
- It is the principal judicial organ of the United Nations.
- It is based in The Hague, Netherlands.
- It consists of 15 judges.
- Its Advisory Opinions are legally binding on UN member states.
Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Q4. Consider the following statements about India’s climate policy:
- India announced its target of net-zero emissions by 2070 at COP26 in Glasgow.
- India is a founding member of the International Solar Alliance.
- India launched Mission LiFE (Lifestyle for Environment) to promote sustainable consumption.
- India is the largest historical emitter of greenhouse gases globally.
Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Answer Key
- (d) — All four statements are correct.
- (e) — All four statements are correct.
- (a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; ICJ Advisory Opinions are NOT legally binding — only contentious case judgments between states are binding. Advisory Opinions carry moral and legal weight but are recommendatory.
- (a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; India is NOT the largest historical emitter — historically, the United States, European Union, and other industrialised countries account for the bulk of cumulative emissions. India’s per-capita emissions remain among the lowest globally despite its current size.
2. India-Italy Bilateral Relations
Source: PIB
Context of the News
Prime Minister Narendra Modi’s landmark official visit to Rome has formally elevated India-Italy ties to a “Special Strategic Partnership” — anchored by a comprehensive multi-sectoral Joint Declaration, a localised Defence Industrial Roadmap, and an ambitious bilateral trade target of €20 billion by 2029, backed by the newly concluded India-EU Free Trade Agreement.
Key Highlights
- Strategic upgrade: Bilateral ties elevated to “Special Strategic Partnership”.
- Bilateral trade target: €20 billion by 2029 (current: €14.25 billion in 2025).
- Backed by: India-EU FTA + India-EFTA TEPA.
Joint Declaration outcomes across 9 pillars:
| Pillar | Key Outcome |
|---|---|
| Institutional Governance | Special Strategic Partnership; Foreign Ministers-led mechanism; Joint Strategic Action Plan 2025-2029 |
| Economic & Critical Minerals | €20 bn trade target; MoU on critical minerals recovery from e-waste and mine tailings |
| Connectivity & Infrastructure | Commitment to IMEC; first IMEC Ministerial in 2026; maritime transport MoU for port networks |
| Deep-Tech | INNOVIT India hub (AI, quantum, fintech, semiconductors); Elettra Sincrotrone (Trieste) access for Indian researchers |
| Defence | Industrial Roadmap — helicopters, naval platforms, marine armaments, EW systems; Maritime Security Dialogue |
| Security & Financial Intelligence | Guardia di Finanza – ED MoU; Permanent Task Force on terror-financing |
| Migration & Talent | Indian nurses mobility pact; Social Security Agreement progress; “ICI – Italy Calls India” university-enterprise bridge |
| Trilateral Africa | India’s DPI + Italy’s Mattei Plan for African development |
| Cultural | MoU for Italy’s role in National Maritime Heritage Complex (NMHC), Lothal; 2027 designated as Year of Culture and Tourism |
About the News
What has changed in India-Italy ties?
Bilateral relations have been formally elevated to a “Special Strategic Partnership” — the highest tier of India’s diplomatic relationships — backed by a multi-sectoral Joint Declaration covering trade, defence, technology, mobility, and culture.
What is INNOVIT India?
A dedicated India-based innovation hub to accelerate startups in AI, quantum computing, fintech, and semiconductors — leveraging Italian tech-industrial expertise and India’s large innovation ecosystem.
What is the Critical Minerals MoU?
A milestone agreement to recover rare-earth and other critical minerals from electronic waste and mine tailings — using Italy’s advanced circular-economy and recycling technology to insulate India’s semiconductor and clean-tech sectors from raw-material supply chokepoints.
What is the Trilateral Africa Initiative?
A new framework where India provides Digital Public Infrastructure (DPI) — UPI-style payments, Aadhaar-style ID, ULI-style credit — and Italy provides infrastructure-finance through its Mattei Plan for joint developmental projects in Africa (agriculture, healthcare, digital payment grids).
What is the National Maritime Heritage Complex (NMHC)?
A flagship cultural and tourism project at Lothal, Gujarat — the ancient Indus Valley port-city — to showcase India’s maritime heritage dating back 5000 years. Italy is contributing technical expertise in maritime archaeology and museum design.
Background Concepts (Q&A)
What is the IMEC?
The India-Middle East-Europe Economic Corridor — a multi-country trade, energy, rail, and digital infrastructure corridor announced at the G20 New Delhi Summit (September 2023), connecting India → UAE → Saudi Arabia → Jordan → Israel → Europe. Italy is a key European anchor with its Mediterranean ports.
What is the Mattei Plan?
Italy’s strategic plan for Africa (named after Italian energy industrialist Enrico Mattei), launched by PM Meloni in 2024 — focused on infrastructure, energy, education, healthcare, and agriculture partnerships across the African continent. Aimed as a European alternative to China’s BRI in Africa.
What is a Social Security Agreement (SSA)?
A bilateral treaty that prevents double taxation on social-security contributions for professionals working abroad, and allows pension portability. India has SSAs with 20+ countries (Germany, France, Belgium, Switzerland, Netherlands, etc.).
What is the Guardia di Finanza?
Italy’s financial police force — a paramilitary corps under the Ministry of Economy, responsible for financial crimes, tax evasion, money laundering, and counter-terrorism financing. The MoU with India’s ED (Enforcement Directorate) strengthens anti-terror-financing cooperation.
What is the National Maritime Heritage Complex (NMHC), Lothal?
A museum and educational complex being built at Lothal, Gujarat — the Indus Valley Civilisation port-city dating from ~2500 BCE. The complex will showcase India’s 5000-year maritime tradition, with galleries, replicas, and research facilities. Italian expertise contributes to maritime archaeology.
Practice MCQs
Q1. With reference to the recent India-Italy Joint Declaration, consider the following statements:
- Bilateral ties have been elevated to a “Special Strategic Partnership.”
- A bilateral trade target of €20 billion by 2029 has been set.
- A new MoU on critical minerals focuses on recovery from electronic waste and mine tailings.
- The first IMEC Ministerial meeting is scheduled for 2026.
How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None
Q2. Consider the following statements about INNOVIT India and Elettra Sincrotrone:
- INNOVIT India is a dedicated innovation hub to accelerate startups in AI, quantum computing, fintech, and semiconductors.
- The Elettra Sincrotrone is a synchrotron-light research facility located in Trieste, Italy.
- Indian researchers have been granted direct beamline access to the Elettra Sincrotrone facility.
- INNOVIT India and Elettra Sincrotrone are both based in India.
Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Q3. Consider the following statements about the India-Italy Trilateral Africa Initiative:
- It combines India’s Digital Public Infrastructure (DPI) with Italy’s Mattei Plan for Africa.
- The Mattei Plan is Italy’s strategic plan for Africa, launched in 2024 by PM Meloni.
- The initiative covers sectors such as agriculture, healthcare, and digital payment systems.
- The Mattei Plan is named after the World War II Italian general Enrico Mattei.
Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Q4. With reference to India’s maritime and cultural heritage initiatives, consider the following statements:
- The National Maritime Heritage Complex (NMHC) is being built at Lothal, Gujarat.
- Lothal was a port-city of the Indus Valley Civilisation, dating to around 2500 BCE.
- Italy has signed an MoU for technical participation in the NMHC project.
- The year 2027 has been designated as the “Year of Culture and Tourism between Italy and India.”
How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None
Answer Key
- (d) — All four statements are correct.
- (a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; INNOVIT India is based in India, but Elettra Sincrotrone is in Trieste, Italy — not in India.
- (a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; the Mattei Plan is named after Enrico Mattei, who was an Italian energy industrialist (founder of ENI), NOT a World War II general.
- (d) — All four statements are correct.
Exam Relevance
| Exam | Relevance |
|---|---|
| UPSC Prelims | GS Paper II — IR (India-Italy, IMEC, India-EU FTA); GS Paper I — Geography & Culture (Lothal, IVC); GS Paper III — Critical minerals, Defence |
| UPSC Mains | GS Paper II — India’s bilateral, regional, multilateral diplomacy |
| State PCS | International Affairs, History (Lothal/IVC), Current Affairs |
| Banking (RBI Gr B, NABARD) | General Awareness — moderate importance |
3. PM Modi Conferred FAO Agricola Medal in Rome
Context:
Prime Minister Narendra Modi has been conferred the prestigious Agricola Medal by the Food and Agriculture Organization (FAO) of the United Nations at its headquarters in Rome, Italy — during his recent landmark visit to Italy as part of his five-nation European tour. The Agricola Medal — named after “Agricola” (Latin for farmer) — is the premier institutional accolade awarded by the FAO Director-General to exceptional global leaders who have demonstrated visionary statecraft and concrete policy execution in transforming global agrifood systems. Established by FAO in 1977 as part of its international numismatic award programme, the medal is awarded selectively to high-level political figures whose work materially advances UN Sustainable Development Goal 2 (Zero Hunger).
Key Highlights
- Recipient: PM Narendra Modi.
- Award: FAO Agricola Medal.
- Conferring authority: FAO Director-General (currently QU Dongyu, China).
- Venue: FAO Headquarters, Rome, Italy.
- Award meaning: “Agricola” — Latin for “farmer”.
- Established: 1977 by FAO.
- Indian recipients (only two):
- Dr. Manmohan Singh (2008) — for rural agricultural reforms.
- PM Narendra Modi (2026) — for structural agrifood transformation.
Stated rationale (basis of conferral):
| Area | India’s Initiative | Scale |
|---|---|---|
| Food Safety Net | PMGKAY — free foodgrains | 800 million citizens |
| Farmer Income Support | PM-KISAN — direct cash transfers via DPI | 110+ million smallholders |
| Climate Resilience | Indigenous bio-fortified, climate-resilient varieties | ~3,000 varieties |
| Agritech Integration | Drones, AI weather advisories, satellite remote-sensing | Across multiple states |
| Water Conservation | ‘Per Drop More Crop’ (PMKSY) — micro-irrigation, sensor-based management | Water-stressed agrarian belts |
About the News
What is the FAO Agricola Medal?
The highest institutional accolade awarded by the FAO of the United Nations to exceptional global leaders for visionary leadership in transforming global agrifood systems — established in 1977.
Why was it conferred on PM Modi?
For India’s structural agrifood achievements over the past decade, particularly the world’s largest free food-grain safety net (PMGKAY), direct income transfers to smallholders (PM-KISAN), deployment of 3,000+ climate-resilient bio-fortified crop varieties, tech-driven farm interventions, and micro-irrigation scaling.
Who are the only Indian recipients?
Only two Indian Prime Ministers have received it: Dr. Manmohan Singh (2008) for rural agricultural reforms, and PM Narendra Modi (2026) for comprehensive agrifood transformation.
What is the medal’s underlying aim?
To recognise extraordinary action toward UN SDG 2 (Zero Hunger) — honouring leaders who dismantle structural poverty, upgrade smallholder livelihoods, enforce robust food safety nets, and champion sustainable, science-driven ecological farming.
Background Concepts
What is the FAO?
The Food and Agriculture Organization — a specialised agency of the United Nations founded on 16 October 1945, headquartered in Rome, Italy. Its mandate covers defeating hunger, improving nutrition, ensuring food security, and supporting sustainable agriculture and rural development. It has 194 member countries + the European Union (195 members in total). World Food Day is observed on 16 October to mark its founding.
What is PMGKAY?
Pradhan Mantri Garib Kalyan Anna Yojana — launched in March 2020 during COVID-19, providing free foodgrains to ~80 crore (800 million) National Food Security Act (NFSA) beneficiaries. In December 2023, the Cabinet extended PMGKAY for 5 years till December 2028.
What is PM-KISAN?
Pradhan Mantri Kisan Samman Nidhi — launched in February 2019, providing ₹6,000 per year (in three ₹2,000 instalments) as direct cash transfer to the bank accounts of smallholder and marginal farmers. Currently benefits ~11 crore farmers.
What is ‘Per Drop More Crop’?
A component of the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) — launched in 2015 — focused on micro-irrigation (drip and sprinkler systems) and sensor-based water-management to improve water-use efficiency in agriculture.
What is SDG 2?
Sustainable Development Goal 2 — “Zero Hunger” — one of 17 SDGs adopted by the UN in 2015 (with 2030 target). It aims to end hunger, achieve food security, improve nutrition, and promote sustainable agriculture globally.
What is Digital Public Infrastructure (DPI)?
Open, interoperable digital systems that serve as foundational layers for government, private, and citizen interactions. India’s DPI stack includes Aadhaar (identity), UPI (payments), Account Aggregator (data), ULI (credit), Bhashini (language), ONDC (commerce) — enabling transparent, leakage-free delivery of welfare like PM-KISAN.
Practice MCQs
Q1. With reference to the FAO Agricola Medal recently conferred on PM Modi, consider the following statements:
- The medal is the highest institutional accolade awarded by the FAO of the United Nations.
- It was established by the FAO in 1977 as part of its international numismatic award programme.
- The medal is awarded by the FAO Director-General to recognise leaders advancing UN SDG 2 (Zero Hunger).
- PM Narendra Modi is the first Indian leader to receive the Agricola Medal.
How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None
Q2. Consider the following statements about the Food and Agriculture Organization (FAO):
- The FAO was founded on 16 October 1945.
- Its headquarters are in Rome, Italy.
- The FAO has 195 members, including 194 countries and the European Union.
- World Food Day is observed on 16 October each year, marking the founding of the FAO.
Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Q3. Consider the following statements about India’s major agrifood schemes:
- PMGKAY provides free foodgrains to around 80 crore NFSA beneficiaries and has been extended till December 2028.
- PM-KISAN provides ₹6,000 per year in three equal instalments of ₹2,000 to smallholder farmers.
- ‘Per Drop More Crop’ is a component of the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY).
- The Pradhan Mantri Krishi Sinchayee Yojana was launched in 2010.
Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Q4. With reference to the United Nations Sustainable Development Goals (SDGs), consider the following statements:
- The SDGs were adopted by UN member states in 2015 with a target year of 2030.
- There are a total of 17 Sustainable Development Goals.
- SDG 2 specifically addresses Zero Hunger, food security, nutrition, and sustainable agriculture.
- India has its own SDG India Index prepared by NITI Aayog to track progress.
Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Answer Key
- (c) — Statements 1, 2, 3 are correct. Statement 4 is wrong; PM Modi is the second Indian leader to receive the Agricola Medal — the first was Dr. Manmohan Singh in 2008 for his rural agricultural reforms.
- (e) — All four statements are correct.
- (a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) was launched in 2015, not 2010.
- (e) — All four statements are correct.
4. Sweden Joins India’s Shukrayaan (Venus Orbiter) Mission
Source: TNIE
Context:
During PM Modi’s official visit to Sweden (part of his five-nation European tour), the Indian Space Research Organisation (ISRO) and the Swedish National Space Agency (SNSA) signed a Memorandum of Understanding (MoU) formalising Sweden’s participation in India’s upcoming Venus Orbiter Mission (VOM) — Shukrayaan (“Venus Craft”). Shukrayaan, approved by the Union Cabinet in September 2024 with a budget of ₹1,236 crore, is India’s first dedicated planetary mission to Venus.
Key Highlights
- MoU signatories: ISRO and Swedish National Space Agency (SNSA).
- Mission: Venus Orbiter Mission (VOM) — Shukrayaan (“Venus Craft”).
- Approved: September 2024 by Union Cabinet.
- Budget: ₹1,236 crore.
- Payloads: 19 scientific instruments.
- Launch vehicle: LVM-3 (heavy-lift).
- Insertion technique: Aerobraking (using planetary atmosphere to slow down).
Mission scientific objectives:
| Objective | Investigation |
|---|---|
| Surface mapping | Volcanic features, terrain |
| Hotspot detection | Active volcanism |
| Subsurface sounding | Internal structure |
| Cloud dynamics | Atmospheric monitoring |
| Liquid water history | Did Venus once have water? |
Sweden’s contribution:
- Instrument: Venusian Neutrals Analyser (VNA).
- Integrated into: VISWAS (Venus Ionospheric and Solar Wind particle AnalySer) — broader sensory package.
- Functions:
- Observe Energetic Neutral Atoms (ENAs) and plasma boundaries.
- Study solar-wind interaction with Venusian ionosphere.
- Help decipher atmospheric escape processes and planetary climate evolution.
Other international collaborators on Shukrayaan:
| Country | Contribution |
|---|---|
| Russia | VIRAL instrument |
| Germany | RAVI experiment |
| Sweden | VNA / VISWAS (new) |
About the News
What is Shukrayaan?
India’s first dedicated planetary mission to Venus — officially the Venus Orbiter Mission (VOM) — approved in September 2024 with a budget of ₹1,236 crore. It will carry 19 scientific payloads and is targeted to launch on 29 March 2028 aboard the LVM-3 rocket.
What is Sweden contributing?
The Venusian Neutrals Analyser (VNA) — a specialised instrument that will become part of the broader VISWAS payload package. It will study Energetic Neutral Atoms (ENAs), plasma boundaries, and solar-wind interactions with the Venusian ionosphere.
What is aerobraking?
A technique where a spacecraft uses atmospheric friction (rather than rocket fuel) to gradually reduce its orbital velocity, achieving a final scientific orbit. It is a fuel-efficient method widely used in planetary missions (used successfully by NASA’s Mars Reconnaissance Orbiter and others).
Background Concepts (Q&A)
What is ISRO?
The Indian Space Research Organisation — India’s national space agency, established in 1969 (succeeding INCOSPAR, founded 1962). Headquartered in Bengaluru, under the Department of Space. Major achievements include Chandrayaan-3 (lunar south pole landing), Mangalyaan (Mars), Aditya-L1 (Sun), GSAT and IRS satellite series, and upcoming Gaganyaan (human spaceflight).
What is the LVM-3?
The Launch Vehicle Mark-3 (formerly GSLV Mk-III) — ISRO’s heavy-lift rocket capable of carrying: (a) 8 tonnes to LEO (Low Earth Orbit). (b) 4 tonnes to GTO (Geostationary Transfer Orbit). Used for Chandrayaan-2 and 3, OneWeb satellite missions, and planned for Gaganyaan.
Why is Venus called Earth’s “twin”?
Because of similar size, mass, density, and composition. However, Venus has: (a) A runaway greenhouse atmosphere (96% CO₂). (b) Surface temperature ~462°C — hotter than Mercury. (c) Pressure 92x Earth’s. (d) Sulfuric acid clouds. (e) Slow retrograde rotation (day longer than year).
What are Energetic Neutral Atoms (ENAs)?
Neutral atoms with high kinetic energy produced when charged particles (ions) from the solar wind capture electrons from neutral gases in a planetary atmosphere. ENAs escape magnetic fields (being neutral) and can be detected remotely — making them excellent probes of plasma interactions and atmospheric escape.
What is the Swedish National Space Agency (SNSA)?
Sweden’s national space agency — established in 1972, headquartered in Stockholm. SNSA coordinates Sweden’s space activities, research, and international collaboration. Sweden has a strong heritage in space plasma research (e.g., Swedish Institute of Space Physics in Kiruna).
Practice MCQs
Q1. With reference to India’s Venus Orbiter Mission (Shukrayaan), consider the following statements:
- It was approved by the Union Cabinet in September 2024 with a budget of ₹1,236 crore.
- The mission will carry 19 scientific payloads.
- The mission is targeted to launch on 29 March 2028 aboard the LVM-3 rocket.
- The spacecraft will use aerobraking techniques to achieve its final scientific orbit.
How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None
Q2. Consider the following statements about Sweden’s contribution to Shukrayaan:
- Sweden is providing the Venusian Neutrals Analyser (VNA) instrument.
- The VNA will be integrated into the larger VISWAS payload package.
- The instrument will study Energetic Neutral Atoms (ENAs) and plasma boundaries around Venus.
- The data will help understand atmospheric escape processes and planetary climate evolution.
Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Q3. Consider the following statements about international collaborations on the Venus Orbiter Mission:
- Russia is providing the VIRAL instrument.
- Germany is collaborating on the RAVI experiment.
- Sweden’s collaboration was formalised during PM Modi’s recent visit to Sweden.
- The MoU was signed between ISRO and the European Space Agency (ESA).
Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Q4. With reference to ISRO and India’s space programme, consider the following statements:
- ISRO was established in 1969 and is headquartered in Bengaluru.
- The LVM-3 (formerly GSLV Mk-III) is India’s heavy-lift launch vehicle.
- ISRO operates under the Department of Space, Government of India.
- India’s first interplanetary mission was Chandrayaan-1 to the Moon.
Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Answer Key
- (d) — All four statements are correct.
- (e) — All four statements are correct.
- (a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; the MoU was signed between ISRO and the Swedish National Space Agency (SNSA) — NOT the European Space Agency (ESA).
- (a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; Chandrayaan-1 was a lunar mission, but it was not an “interplanetary” mission in the strict sense (the Moon is not a planet). India’s first interplanetary mission was the Mars Orbiter Mission (Mangalyaan) launched in November 2013.
5. India Hosts 68th Session of the Asian Productivity Organization (APO)
Source: PIB
Context:
The Government of India is hosting the 68th Session of the Asian Productivity Organization (APO) Governing Body at Bharat Mandapam, New Delhi — reinforcing India’s role as a central force in Asia-Pacific productivity cooperation. The APO, established on 11 May 1961, is a non-political, non-profit, and non-discriminatory intergovernmental organisation comprising 21 member economies from the Asia-Pacific region, headquartered in Tokyo, Japan. Its mandate is to contribute to the sustainable socioeconomic development of Asia and the Pacific by enhancing productivity through mutual cooperation, knowledge sharing, and innovation-led growth.
Key Highlights
- Event: 68th Session of the APO Governing Body.
- Host: Government of India.
- Venue: Bharat Mandapam, New Delhi.
- About APO:
- Established: 11 May 1961.
- HQ: Tokyo, Japan.
- Members: 21 economies in the Asia-Pacific.
- Nature: Non-political, non-profit, non-discriminatory intergovernmental organisation.
- Aim: Sustainable socioeconomic development of Asia-Pacific via productivity enhancement through cooperation, knowledge sharing, innovation.
Five APO functional roles:
| Function | Role |
|---|---|
| Think Tank | Research on productivity, climate, economic trends |
| Catalyst | Promote bilateral/multilateral engagements; institutional reforms |
| Regional Adviser | Policy advisory to governments |
| Institution Builder | Train HR; strengthen NPOs, SMEs, public sector |
| Clearinghouse | Gather and disseminate productivity best practices and tools |
- India’s national arm: National Productivity Council (NPC) — established 1958.
- Strategic context: Aligned with Viksit Bharat 2047 vision — productivity-led growth.
About the News
What is the APO?
The Asian Productivity Organization — a non-political, non-profit intergovernmental body of 21 Asia-Pacific economies working together to enhance productivity for sustainable socioeconomic development. Founded in 1961, headquartered in Tokyo.
Why is India hosting the 68th Session?
India, as a founding member, hosts APO Governing Body sessions periodically. The 68th Session at Bharat Mandapam positions India as a leading voice on productivity-led growth in the Asia-Pacific, aligned with its Viksit Bharat 2047 agenda.
Background Concepts
What is “productivity” in economic terms?
The efficiency with which inputs (labour, capital, technology, energy) are converted into outputs. Higher productivity means more output from the same inputs — essential for sustained economic growth, higher wages, and improved living standards.
What are National Productivity Organizations (NPOs)?
National-level bodies in APO member economies that promote productivity through training, research, consultancy, and policy advice. India’s NPO is the National Productivity Council (NPC).
What is the National Productivity Council (NPC)?
An autonomous, registered society under India’s Ministry of Commerce and Industry, established in 1958. It promotes productivity culture in India through training, consultancy, research, and dissemination across manufacturing, services, agriculture, and public sectors.
What is Bharat Mandapam?
A state-of-the-art international exhibition and convention centre at Pragati Maidan, New Delhi, inaugurated in July 2023. It was the venue for the G20 Summit (September 2023) and now hosts major international conferences and events.
Practice MCQs
Q1. With reference to the Asian Productivity Organization (APO), consider the following statements:
- It was established on 11 May 1961.
- It is headquartered in Tokyo, Japan.
- It is a non-political, non-profit, and non-discriminatory intergovernmental organisation.
- It currently has 21 member economies from the Asia-Pacific region.
How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None
Q2. Consider the following statements about India’s engagement with the APO:
- India is a founding member of the APO.
- The National Productivity Council (NPC) is India’s designated National Productivity Organization (NPO).
- The NPC was established in 1958.
- The NPC functions under the Ministry of Labour and Employment.
Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Q3. Consider the following functional roles of the Asian Productivity Organization (APO):
- Think Tank — conducting research on productivity, climate impact, and economic trends.
- Catalyst — promoting institutional reforms and innovation ecosystems.
- Regional Adviser — providing policy advisory services to governments.
- Clearinghouse — gathering and disseminating best practices on productivity enhancement.
Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Q4. Consider the following statements about Bharat Mandapam:
- It is located at Pragati Maidan, New Delhi.
- It was inaugurated in July 2023.
- It hosted the G20 Summit in September 2023.
- It is currently the venue for the 68th Session of the APO Governing Body.
Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Answer Key
- (d) — All four statements are correct.
- (a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; the NPC is an autonomous registered society under the Ministry of Commerce and Industry, NOT under the Ministry of Labour and Employment.
- (e) — All four statements are correct.
- (e) — All four statements are correct.
Exam Relevance
| Exam | Relevance |
|---|---|
| UPSC Prelims | GS Paper II — International Organisations (APO, regional groupings); GS Paper III — Indian Economy (Productivity, growth) |
| UPSC Mains | GS Paper II — International institutions, India’s regional engagement |
| State PCS | International Affairs, Indian Economy, Current Affairs |
| Banking (RBI Gr B, NABARD) | Banking & Economy — moderate importance |
| SEBI / IRDAI / NABARD Grade A | Financial-economic awareness |
6. Union Minister Jyotiraditya Scindia Launches Mission on “Arunachal Kiwi
Context:
Union Minister Jyotiraditya Madhavrao Scindia, Ministry of Development of North Eastern Region (MoDoNER), has launched the Mission on “Arunachal Kiwi: The USP of Arunachal Pradesh” — a cluster-based Kiwi cultivation and value-chain Development Mission designed specifically for Arunachal Pradesh. The Mission, with a total budget outlay of ₹167 crore, is built on a whole-of-government, convergence-led approach, combining schemes from multiple Union Ministries Ministry of Agriculture and Farmers Welfare (MoA&FW), Ministry of Rural Development (MoRD), and Ministry of Food Processing Industries (MoFPI) — and supported by various other organisations. Arunachal Pradesh is India’s largest kiwi-producing state (~57% of national production) and the only state where kiwi cultivation has both ecological suitability and significant farmer base.
Key Highlights
- Launching Minister: Jyotiraditya Madhavrao Scindia, Union Minister, MoDoNER.
- Mission name: Arunachal Kiwi: The USP of Arunachal Pradesh.
- State: Arunachal Pradesh.
- Budget outlay: ₹167 crore.
- Approach: Whole-of-government, convergence-led.
- Convergence of Ministries:
- Ministry of Agriculture and Farmers Welfare (MoA&FW).
- Ministry of Rural Development (MoRD).
- Ministry of Food Processing Industries (MoFPI).
- MoDoNER as lead.
- Strategy: Cluster-based approach with six integrated cluster-level Post-Harvest Management Hubs.
- Identified locations:
- Ziro Valley (Lower Subansiri district).
- Dirang and Kalaktang (West Kameng district).
- Other locations across kiwi-producing belts.
About the News (Q&A)
What is the Mission about?
A cluster-based kiwi cultivation and value-chain development mission specifically designed for Arunachal Pradesh — combining schemes from multiple Union ministries under a whole-of-government, convergence-led approach with a budget of ₹167 crore.
Why focus on kiwi in Arunachal?
(a) Arunachal Pradesh produces ~57% of India’s kiwi — making it the largest kiwi-producing state. (b) GI-tagged “Arunachal Kiwi” — granted in 2015. (c) Ecological suitability — temperate climate of Arunachal’s mid-hills ideal for kiwi. (d) Existing farmer base with growing interest. (e) High commercial potential in domestic and export markets.
Background Concepts (Q&A)
What is MoDoNER?
The Ministry of Development of North Eastern Region — established as a separate ministry in 2004 (from the earlier Department of Development of North Eastern Region). It is responsible for planning, coordinating, and supporting the development of the eight North Eastern states: Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura.
What is the “convergence-led approach”?
A development model where multiple schemes from different ministries and agencies are integrated to deliver coordinated outcomes for a specific objective or region — avoiding siloed implementation and maximising impact through complementary interventions.
Why is kiwi commercially important?
(a) High-value export crop — strong global demand. (b) Long shelf life with cold chain — facilitates trade. (c) High nutritional value — Vitamin C, antioxidants. (d) Premium pricing compared to staple crops. (e) Income diversification for farmers.
What is the GI tag for Arunachal Kiwi?
The Arunachal Kiwi was granted GI (Geographical Indication) tag in 2015 — recognising its unique qualities tied to the Arunachal region’s terroir (climate, soil, traditional practices). GI tags provide legal protection to the producers and brand recognition in domestic and export markets.
Practice MCQs
Q1. With reference to the recently launched Mission on “Arunachal Kiwi: The USP of Arunachal Pradesh”, consider the following statements:
- The Mission was launched by Union Minister Jyotiraditya M. Scindia of MoDoNER.
- The total budget outlay is ₹167 crore.
- It is built on a whole-of-government, convergence-led approach combining schemes of MoA&FW, MoRD, and MoFPI.
- The Mission targets the creation of 2,000 MT cold-chain capacity for kiwi.
How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None
Q2. Consider the following statements about kiwi cultivation in India:
- Arunachal Pradesh is India’s largest kiwi-producing state.
- The “Arunachal Kiwi” received a Geographical Indication (GI) tag in 2015.
- Kiwi cultivation in Arunachal Pradesh is concentrated in districts like Lower Subansiri and West Kameng.
- India is currently a leading global exporter of kiwi.
Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Q3. Consider the following statements about the Ministry of Development of North Eastern Region (MoDoNER):
- MoDoNER was established as a separate ministry in 2004.
- It coordinates development across the eight North Eastern states.
- Sikkim is included within MoDoNER’s purview.
- The North East Council is an advisory body that works closely with MoDoNER.
Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Q4. With reference to GI-tagged products from the Northeast, consider the following pairs:
- Naga Mircha (King Chilli) — Nagaland.
- Chak-Hao (Black Rice) — Manipur.
- Large Cardamom — Sikkim.
- Queen Pineapple — Tripura.
Which of the above are correctly matched? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Answer Key
- (d) — All four statements are correct.
- (a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; India is NOT a leading global exporter of kiwi — global kiwi exports are dominated by New Zealand, Italy, Chile, and Greece. India’s kiwi is largely consumed domestically, though export potential exists.
- (e) — All four statements are correct.
- (e) — All four statements are correctly matched.
Banking/Finance
1. RBI Revives Aggressive Pre-Market Intervention to Arrest Rupee’s Slide
Source: ET
Context:
The Reserve Bank of India (RBI) has revived its aggressive pre-market intervention strategy to arrest the rupee’s slide, after the currency fell within a whisker of 97 against the US dollar — a fresh record low. Through heavy dollar sales via state-run banks before market open on Thursday, the RBI engineered a 70-paise intra-day rally, with the rupee opening at 96.30 and closing at 96.36 — a 50-paise recovery from Wednesday’s intraday low. The intervention reflects a deliberate tactical choice: deploying stealth liquidity through PSU bank treasuries during the 9:00 am pre-open phase, when thin liquidity amplifies the signalling effect and breaks speculative momentum before continuous trading begins.
Key Highlights
- Strategy revived: Pre-market spot dollar intervention via state-run banks.
- Day: Thursday (RBI intervention day).
- Rupee path:
- Wednesday low: Within a whisker of 97/USD.
- Thursday opening: 96.30 (after intervention).
- Intra-day rally: ~70 paise within minutes.
- Thursday close: 96.36 (~50-paise recovery from low).
- Previous deployment: March 2026.
- Tactical logic:
- Thin pre-open liquidity → maximises signalling impact.
- Stealth via PSU bank treasuries.
- Breaks speculative momentum before continuous trading.
Drivers of rupee pressure (May 2026):
| Factor | Impact |
|---|---|
| 2026 West Asia conflict | Oil >$100/barrel; supply-chain risk |
| Strait of Hormuz disruption | Tanker insurance costs; shipping delays |
| FPI outflows | ~₹14,231 crore in May 2026 |
| Strong US dollar globally | DXY pressure on all EM currencies |
| CAD widening pressures | Trade deficit deterioration |
| Bearish sentiment | Self-reinforcing depreciation expectations |
- RBI tools deployed:
- Spot dollar sales.
- Forward operations.
- NDF interventions (offshore).
- FX swaps.
- Framework: Managed float — no specific level targeted; volatility-smoothing mandate.
About the News
What did the RBI do?
The RBI sold dollars heavily via state-run banks before market open on Thursday, causing the rupee to rally ~70 paise and open at 96.30 — a sharp recovery from Wednesday’s near-97 low.
Why pre-market intervention specifically?
Because the pre-open window (9:00-9:15 am) has thin liquidity — meaning smaller dollar sales generate larger price impact, maximising signalling value and breaking speculative momentum before continuous trading.
What are PSU banks’ role?
State-run banks (especially SBI) act as the RBI’s market arm — executing dollar sales with discretion and market secrecy, allowing the RBI to intervene without identifying itself and without market-disruptive disclosure.
What is the NDF market and why does it matter?
The Non-Deliverable Forward (NDF) market is the offshore forward market for the rupee — operating in Singapore, London, Dubai, Hong Kong. It is outside RBI’s direct control but influences onshore spot rates through arbitrage. The RBI sometimes intervenes in NDF too to prevent offshore-onshore arbitrage from undermining spot defence.
Does the RBI target a specific rupee level?
No. The RBI operates a “managed float” — intervening to smooth excessive volatility without targeting a level. However, in practice, the RBI leans against trends and defends key psychological levels when sentiment turns disorderly
Background Concepts (Q&A)
What is the “managed float” exchange rate regime?
A regime where the exchange rate is largely market-determined but the central bank intervenes to smooth volatility — without targeting a specific level. India has followed this since the 1993 LERMS (Liberalised Exchange Rate Management System) transition.
What is the Mundell-Fleming trilemma (impossible trinity)?
The principle that a country cannot simultaneously have: (a) Free capital mobility. (b) Independent monetary policy. (c) Exchange rate stability. A country must choose two of three — typically India accepts limited capital account openness and an independent monetary policy, while letting the rupee adjust within bounds.
What are India’s forex reserves used for?
(a) Import cover (currently ~10-11 months). (b) External debt service. (c) Currency stabilisation. (d) Confidence buffer for global investors. (e) Crisis management.
What is the difference between spot and NDF markets?
(a) Spot market: Onshore in India; under RBI’s direct regulation; settles in INR. (b) NDF market: Offshore (Singapore, London, etc.); settles in USD without physical INR delivery; used by non-residents to bet on/hedge rupee.
Why is “self-reinforcing depreciation” dangerous?
Because: (a) Falling rupee → expectations of further fall → speculators sell → rupee falls more. (b) Importers rush to cover → demand for dollars rises. (c) Exporters delay realisation → dollar supply tightens. (d) Sentiment becomes the fundamental — disconnecting from underlying economics. RBI’s aggressive intervention specifically aims to break this feedback loop.
Practice MCQs
Q1. With reference to the RBI’s pre-market intervention strategy, consider the following statements:
- The RBI deployed heavy dollar sales via state-run banks before market open to arrest the rupee’s slide.
- The rupee fell to within a whisker of 97 against the US dollar on Wednesday before the intervention.
- The RBI uses the pre-open window because thin liquidity in that period maximises the price-impact of intervention.
- The RBI publicly identifies itself as the intervening party during such operations.
How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None
Q2. Consider the following statements about India’s exchange rate management:
- India operates a “managed float” exchange rate regime.
- The RBI intervenes in spot, forward, and NDF markets to manage the rupee.
- State-run banks (PSU banks) act as the RBI’s market arm in forex interventions.
- The RBI targets a specific rupee level under its current framework.
Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Q3. With reference to the Mundell-Fleming trilemma (Impossible Trinity), consider the following statements:
- A country cannot simultaneously have free capital mobility, an independent monetary policy, and a fixed exchange rate.
- A country must choose any two of these three policy goals.
- India accepts limited capital account openness, allowing it to have an independent monetary policy and managed exchange rate.
- The trilemma was developed by economists Robert Mundell and Marcus Fleming in the 1960s.
Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Q4. Consider the following statements about the Non-Deliverable Forward (NDF) market:
- The NDF market for the rupee is located offshore in centres like Singapore, London, and Dubai.
- NDF contracts settle in USD without physical delivery of INR.
- The NDF market is directly regulated by the RBI within India.
- The NDF market can influence onshore spot rates through arbitrage.
Which of the above are correct? (a) 1, 2 and 4 only (b) 1, 2 and 3 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Answer Key
- (c) — Statements 1, 2, 3 are correct. Statement 4 is wrong; the RBI does NOT publicly identify itself during forex interventions — it operates through PSU banks with deliberate market secrecy to preserve tactical effectiveness.
- (a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; the RBI does NOT target any specific rupee level — it operates a managed float and intervenes to smooth disorderly volatility, not to defend a particular level.
- (e) — All four statements are correct.
- (a) — Statements 1, 2, 4 are correct. Statement 3 is wrong; the NDF market operates offshore and is OUTSIDE the RBI’s direct regulatory control. The RBI can influence it only through indirect interventions and through onshore-offshore arbitrage channels.
Exam Relevance
| Exam | Relevance |
|---|---|
| Banking (RBI Gr B, SBI PO, IBPS, NABARD) | Banking & Economy — high importance |
| SEBI / IRDAI / NABARD Grade A | Financial markets, forex |
2. SEBI Moots New Price Discovery Mechanism for IPOs & Relistings
Source: BL
Context:
The Securities and Exchange Board of India (SEBI) has proposed comprehensive changes to the price-discovery mechanism for Initial Public Offerings (IPOs) and relisted stocks during the pre-open call auction session — the one-hour window between 9 am and 10 am on the first day of listing or relisting. The revision addresses distorted price-discovery that has emerged from the current “dummy price band” formula and base-price methodology — including a striking case where 90% of buy orders during the call auction were rejected as they fell outside the prescribed price bands.
Key Highlights
- Regulator: Securities and Exchange Board of India (SEBI).
- Action: Proposed overhaul of price-discovery mechanism for IPOs and relistings.
- Concern flagged: Distorted price-discovery and inefficient call-auction sessions — case noted where 90% of buy orders were rejected.
Proposed changes:
| Area | Current Framework | Proposed Reform |
|---|---|---|
| Mainboard IPO band | -50% to +100% from base price | Auto-widening by 10% when equilibrium price approaches threshold |
| SME IPO band | ±90%, no flexing | Flexing mechanism extended |
| Band expansion trigger | — | 5 PAN-based unique investors needed at extremes |
| Relisting base price | — | Latest traded price ≤ 6 months old |
| No recent price | — | Independent valuation agency certificates |
| Relisting after >6 months suspension | — | Lower of two independent valuers’ book values |
- Pre-open call auction session: 9 am – 10 am on first day of listing/relisting.
- Strategic goals: Improve price-discovery accuracy, reduce order rejections, protect retail investors, especially in volatile SME segment.
About the News
What is SEBI proposing?
A revised price-discovery framework for the pre-open call auction session of IPOs and relisted stocks — including auto-widening of price bands, flexing mechanisms for SME IPOs, and clear base-price rules for relistings.
What is the pre-open call auction session?
A one-hour window (9 am – 10 am) on the first trading day of a listing or relisting, during which investors place buy/sell orders at various prices, and an equilibrium opening price is discovered by matching demand and supply.
Why did SEBI propose changes?
Because the current framework was creating distorted price discovery — including a case where 90% of buy orders were rejected for being outside the prescribed bands.
What are dummy price bands?
Provisional price ranges applied to IPOs and relistings during their first day to cap allowable order prices. Current limits: mainboard IPOs at -50% to +100% of base price; SME IPOs at ±90%.
What is the new flexing mechanism?
(a) Exchanges automatically widen bands by 10% when the indicative equilibrium price nears the upper/lower threshold. (b) Bands may also widen if orders cluster at extreme ends, subject to validation of 5 PAN-based unique investors.
How will relisting base prices be determined?
(a) Latest traded price within the last 6 months (preferred). (b) If unavailable: Independent valuation agency certificate. (c) If suspension >6 months: Lower of two independent valuers’ book values.
Background Concepts
What is an IPO?
Initial Public Offering — the first sale of a company’s shares to the public, after which the stock is listed on an exchange. India distinguishes between mainboard IPOs (larger, BSE/NSE main platforms) and SME IPOs (smaller companies, BSE SME and NSE Emerge platforms).
What is “price discovery”?
The process by which a market determines an asset’s price through the interaction of supply and demand. For IPOs, accurate price discovery on Day 1 is critical to prevent extreme volatility and protect retail investors.
What is a “call auction”?
A periodic batch-trading mechanism where orders are collected over a window and then matched simultaneously at a single equilibrium price — used instead of continuous trading during specific sessions like pre-open and listing day.
What is a “relisted” stock?
A previously listed stock that was suspended from trading (due to non-compliance, financial distress, etc.) and is re-admitted to trading after the underlying issues are resolved.
Why is SME segment particularly volatile?
(a) Smaller market caps are more susceptible to manipulation. (b) Lower liquidity amplifies price moves. (c) Concentrated ownership patterns. (d) Lower analyst coverage. SEBI’s extension of flexing mechanisms to SME IPOs directly addresses these vulnerabilities.
Practice MCQs
Q1. With reference to SEBI’s proposed price-discovery mechanism for IPOs and relistings, consider the following statements:
- The pre-open call auction session is conducted between 9 am and 10 am on the first day of listing or relisting.
- For mainboard IPOs, the current dummy price band is -50% to +100% from the base price.
- The proposed flexing mechanism will require validation of at least 5 PAN-based unique investors at extreme price points.
- SME IPOs currently have a flexing mechanism with band ranges of ±50%.
How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None
Q2. Consider the following statements about the proposed base-price framework for relisted stocks:
- The latest traded price should not be older than six months for use as base price.
- If no recent traded price is available, the base price may be derived from valuation certificates issued by independent agencies.
- For stocks relisted after more than six months of suspension, the higher of the book values from two independent valuers will be used.
- The reforms aim to improve price-discovery accuracy and reduce order rejections.
Which of the above are correct? (a) 1, 2 and 4 only (b) 1, 2 and 3 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Q3. Consider the following statements about SEBI:
- SEBI is a statutory body established under the SEBI Act, 1992.
- It regulates primary and secondary securities markets in India.
- It distinguishes between mainboard IPOs and SME IPOs, with separate exchange platforms.
- Appeals against SEBI orders lie with the Securities Appellate Tribunal (SAT).
Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Q4. With reference to call auctions and price discovery, consider the following statements:
- A call auction collects orders over a window and matches them simultaneously at a single equilibrium price.
- Price discovery is the process by which markets determine asset prices through the interaction of supply and demand.
- The pre-open call auction session is used for both newly listed and relisted stocks on Day 1.
- Continuous trading and call auctions are identical mechanisms.
Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Answer Key
- (c) — Statements 1, 2, 3 are correct. Statement 4 is wrong; SME IPOs currently have a price band of ±90%, NOT ±50%, and they currently lack any flexing mechanism — which the new proposal addresses.
- (a) — Statements 1, 2, 4 are correct. Statement 3 is wrong; the proposal uses the LOWER of the book values from two independent valuers — not the higher — as a conservative pricing approach.
- (e) — All four statements are correct.
- (a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; continuous trading and call auctions are DIFFERENT mechanisms — continuous trading matches orders in real-time as they arrive, while call auctions collect orders over a window and match at one equilibrium price.
Facts To Remember
1. Multinational Military Exercise PRAGATI 2026 Begins in Meghalaya
The first edition of the multinational military exercise PRAGATI 2026 commenced at Umroi Military Station in Meghalaya. Organised by the Indian Army, the exercise is being conducted from May 18 to 31, 2026 with participation from 12 friendly nations across South Asia and Southeast Asia. The exercise focuses on counter-terrorism operations in jungle and semi-mountain terrain under India’s SAGAR and Act East frameworks.
2. Tonbo Imaging Secures Indian Navy Contract for High Power Microwave System
Tonbo Imaging secured a contract from the Indian Navy under the ADITI 3.0 innovation framework to develop and integrate a High Power Microwave (HPM) system for naval platforms. The project aims to strengthen directed-energy capabilities for maritime warfare and counter unmanned threats. The programme is supported by iDEX and the Defence Innovation Organisation under the Ministry of Defence.
3. ICAR-CRRI Develops World’s First AI-Designed Gene Editor for Crops
Scientists at ICAR’s Central Rice Research Institute developed “Plant-OpenCRISPR1”, the world’s first AI-designed genome-editing platform for crops using rice as a model. The platform enables advanced gene editing for climate-resilient, disease-resistant, and high-yield crops without introducing foreign genes. The research was led by Dr. Kutubuddin Ali Molla and has been accepted for publication in the journal New Phytologist.
4. PM Narendra Modi Visits Sweden on May 17–18, 2026
Prime Minister Narendra Modi visited Sweden on a two-day official visit and held bilateral talks with Swedish Prime Minister Ulf Kristersson. During the visit, PM Modi received Sweden’s “Royal Order of Polar Star”, one of the country’s highest civilian honours. India and Sweden also agreed to elevate bilateral relations, launch new innovation partnerships, and strengthen cooperation in trade, space, startups, and clean technologies.
5. Bajaj General Insurance Launches MHCP EDGE+ Health Plan
Bajaj General Insurance launched “My Health Care Plan Edge+”, a new health indemnity insurance plan offering coverage from Rs 5 lakh to Rs 5 crore. The plan includes unlimited reinstatement benefits, global treatment coverage, wellness-linked services, and multiple add-on features. It aims to provide flexible and long-term healthcare protection for individuals and families.
6. NCDEX Launches India’s First Weather Derivatives Contract
The National Commodities and Derivatives Exchange launched India’s first exchange-traded weather derivatives contract named “RAINMUMBAI”. The contract is designed to hedge financial risks arising from rainfall variability in Mumbai and surrounding areas. Developed with IIT Bombay and based on IMD rainfall data, the contract will begin implementation from June 1, 2026.
7. UNDESA Lowers India’s GDP Forecast to 6.4% for FY27
The United Nations Department of Economic and Social Affairs revised India’s GDP growth forecast for FY27 to 6.4% from its earlier estimate of 6.6% in the report “World Economic Situation and Prospects 2026”. The revision was attributed to global uncertainties and the ongoing West Asia crisis. The report also projected inflation in India at 4.9% for FY27.
8. ICRA Cuts India’s GDP Growth Forecast to 6.2% for FY27
ICRA revised India’s GDP growth forecast for FY27 downward to 6.2%, citing elevated crude oil prices and global uncertainties arising from the West Asia conflict. The rating agency also projected India’s GDP growth for Q4FY26 at 7%. Merchandise exports in Q4FY26 declined due to weak global demand and energy supply disruptions.
9. Tata Power and Bhutan’s Druk Green Sign Clean Energy Pact
Tata Power and Bhutan’s Druk Green Power Corporation signed an MoU to establish a clean energy cooperation framework targeting 5,000 MW clean energy capacity in Bhutan. The partnership will also support skill development and renewable energy workforce training through Tata Power Skill Development Institute. The initiative aims to strengthen regional cooperation in clean energy and sustainability.
10. Taiwanese Author Yáng Shuāng-zǐ Wins International Booker Prize 2026
Taiwanese author Yáng Shuāng-zǐ and translator Lin King won the International Booker Prize 2026 for the novel Taiwan Travelogue. The book became the first Mandarin Chinese novel to receive the award. The prize carries a cash award of 50,000 British Pounds shared equally between the author and translator.
11. BWSSB Ranked Among Top Five Global Water Utilities
The Bengaluru Water Supply and Sewerage Board secured a place among the top five global water utilities at the Global Water Awards 2026 held in Madrid, Spain. BWSSB received recognition in three categories including Utility of the Year, SDG-6 Champion, and Water Project of the Year. It became the only Indian utility to achieve top-five global recognition in all three categories.
12. HAL’s K.K. Venugopal Becomes First Indian Test Pilot Elected Fellow of SETP
K.K. Venugopal of Hindustan Aeronautics Limited became the first Indian test pilot to be elected Fellow of the Society of Experimental Test Pilots, USA. The recognition honours his contributions to aerospace innovation and experimental flight testing in India’s indigenous defence aviation programmes. He currently serves as Executive Director and Chief Test Pilot at HAL.
13. GRSE Launches Next Generation Offshore Patrol Vessel ‘INS Sanghmitra’
Garden Reach Shipbuilders and Engineers launched INS Sanghmitra, the first of four Next Generation Offshore Patrol Vessels for the Indian Navy in Kolkata. Built under the Buy (Indian-IDDM) category, the vessel is designed to strengthen indigenous naval manufacturing capabilities under the Aatmanirbhar Bharat initiative. The ship has a range of 8,500 nautical miles and a maximum speed of 23 knots.
14. India Successfully Tests ‘Suryastra’ Rocket System
India successfully conducted trials of the “Suryastra” Universal Rocket Launcher system with strike capability up to 300 kilometres. Developed by NIBE Limited in collaboration with Elbit Systems of Israel, the precision-guided rocket system is designed for deep-strike operations against strategic targets. The trials were conducted from the Integrated Test Range in Odisha.
15. World Fair Play Day 2026 – May 19
World Fair Play Day 2026 was observed globally on May 19 to promote sportsmanship, honesty, inclusion, and fairness in sports. The observance encourages athletes, organisations, and stakeholders to uphold integrity and the spirit of fair competition. The year 2026 marked the second observance of the day.
16. World Bee Day 2026 – May 20
World Bee Day 2026 was observed on May 20 to raise awareness about the importance of bees and pollinators in biodiversity and food security. The 2026 theme was “Bee Together for People and the Planet – A partnership that sustains us all.” The day commemorates the birth anniversary of Anton Janša, a pioneer of modern apiculture.
