Context: Indian companies´ foreign borrowings plunged 20.2 per cent to $23.33 billion in 2024, down from $29.22 billion a year earlier. Foreign Borrowings Foreign borrowings, also referred to as external debt, is borrowed money by a government, corporation, or household from another country. Foreign borrowings can either be short-term or long-term liabilities. India Inc’s Foreign Borrowings Down in 2024
Merchandise Trade Deficit
Context: India´s merchandise trade narrowed to $21.94 in December, down from a record $31.86 billion in November, as gold imports halved to $4.7 billion, according to commerce department released. Merchandise Trade Deficit A merchandise trade deficit is when a country imports more than it exports. This simply means that the country is spending more on foreign goods than it is earning from exports.
RBI’s Exchange Rate Policy
Context: The RBI has discontinued its flexible exchange rate regime in 2022 and is maintaining a de facto peg against the U.S. dollar. Exchange Rate Policy A flexible exchange rate is a monetary system where the exchange rate of a currency is determined by supply and demand in the foreign exchange market. It’s also known as a floating exchange rate. Key Assumptions Unintended Consequences of the Peg External Commercial Borrowing Currency peg A currency peg is a policy that ties a country’s currency to another country’s currency, or a basket of currencies. The goal is to keep a country’s currency stable so that it can compete in international trade. Price-to-earnings-to-growth (PEG) ratio A PEG ratio is a financial metric that investors use to evaluate a stock’s value. It compares a stock’s price-to-earnings (P/E) ratio to its earnings growth rate.
Variable Rate Repo (VRR)
Context: the Reserve Bank of India (RBI) has announced that it will conduct daily variable rate repo (VRR) auctions on all working days in Mumbai, until further notice. The daily auctions, aimed at easing the current liquidity tightness in the banking system. The Variable Rate Repo (VRR) The Variable Rate Repo (VRR) is that tool with the Reserve Bank of India (RBI) can fine-tune liquidity in the banking system. The VRR is a lending rate which might change as and when required to the economy. UPSC Civil Services Examination, Previous Year Questions (PYQs) Prelims Q. If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do (2020) Select the correct answer using the code given below: (a) 1 and 2 only(b) 2 only(c) 1 and 3 only(d) 1, 2 and 3 Ans: (b) Q. With reference to Indian economy, consider the following: (2015) Which of the above is/are component/ components of Monetary Policy? (a) 1 only(b) 2, 3 and 4(c) 1 and 2(d) 1, 3 and 4 Ans: (c) Mains Q. Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments. (2019)
Initiative for Nutritional Security through Intensive Millets Promotion (INSIMP)
The INSIMP is a programme to promote intensive millet cultivation and consumption in India. It was launched in 2011-12 under Rashtriya Krishi Vikas Yojana (RKVY). UPSC Prelims PYQ Q. With reference to ‘Initiative for Nutritional Security through Intensive Millets Promotion’, which of the following statements is/are correct? (2016) Select the correct answer using the code given below: (a) 1 only(b) 2 and 3 only(c) 1 and 2 only(d) 1, 2 and 3 Ans: (c) Exp:
Permaculture Farming vs Conventional Farming
Permaculture farming is a sustainable farming method that is nature-based and productive for future generations. Conventional farming, also referred to as chemical farming, is based on chemical inputs to control pests and increase growth. Differences between Permaculture and Conventional farming Permaculture Farming Conventional Farming UPSC PYQ Prelims Question Q. How is permaculture farming different from conventional chemical farming? (2021) Select the correct answer using the code given below: (a) 1 and 3(b) 1, 2 and 4(c) 4 only(d) 2 and 3 Ans: (b) Q. With references to organic farming in India, consider the following statements: (2018) Which of the statements given above is/are correct? (a) 1 and 2 only(b) 2 and 3 only(c) 3 only(d) 1, 2 and 3 Ans: B
PM-WANI Scheme
Context: The draft Telecommunication Tariff (Seventy First Amendment) Order, 2025 proposes that the “broadband tariff (fiber to the home [FTTH]) for Public Data Office (PDO) under the PM-WANI scheme shall not exceed twice the tariff applicable for retail broadband FTTH services for the corresponding capacity offered by the respective service provider.” PM-WANI Scheme The Prime Minister’s Wi-Fi Access Network Interface (PM-WANI) was launched in December 2020 by the Department of Telecommunications (DoT) PM-WANI Ecosystem Digital Public Infrastructure (DPI) UPSC Civil Services Examination Previous Year’s Questions (PYQs) Prelims Q. Consider the following statements: (2018) 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 Ans: (d)
The Indian National Science Academy (INSA)
Context: The annual list of Fellows announced by the 90-year-old Indian National Science Academy, among the country’s most prestigious assembly of scientists, sticks out this year for its deviation from the academy’s traditional practice. The list features a phalanx of famous Indians who are not professional scientists. The Indian National Science Academy (INSA) The Indian National Science Academy (INSA) is the New Delhi-based national academy for Indian scientists of all disciplines. In 2015, it founded the Indian National Young Academy of Sciences (INYAS), a junior wing for young scientists. INYAS is affiliated with Global Young Academy and has signed the declaration on Core Values of Young Academies. The current president of INYAS is Prof. Ashutosh Sharma. History and Growth
5. Maharishi Agastya
Context: “With Maharishi Agasthyar as the central theme and Mahakumbh and Shri Ayodhya Dham as the backdrop, Kashi Tamil Sangamam 3.0 will offer a divine experience and bring Tamil Nadu and Kashi – the two timeless centres of our civilisation and culture, more closer than ever” Said Union Education Minister Dharmendra Pradhan. Maharishi Agastya Agastya was a revered Indian sage of Hinduism.. In the Indian tradition, he is a known ascetic and a great scholar of various Indian subcontinent languages. In some traditions, he is considered a Chiranjivi. He and his wife Lopamudra are the famous authors of the Sanskrit text Rigveda hymns 1.165 to 1.191 and other Vedic literature. Agastya is the father of Siddha medicine. He is one of the Tamil Siddhar in the Shaivism tradition and is revered as such. He invented the grammar of the early Tamil language called Agattiyam and took the pioneering steps in the development of Tampraparniyan medicine and spirituality.
India-China Border Dispute
China’s Provocative Actions Geographical Dispute India and China have argued over the sovereignty of many areas along their border, including Aksai Chin and Arunachal Pradesh. India’s Strategic Challenges UPSC Civil Services Examination, Previous Year Question (PYQ) Prelims Q.‘Hand-in-Hand 2007’ a joint anti-terrorism military training was held by the officers of the Indian Army and officers of the Army of which one of the following countries? (2008) (a) China (b) Japan (c) Russia (d) USA Ans: (a) Mains Q. The China-Pakistan Economic Corridor (CPEC) is viewed as a cardinal subset of China’s larger ‘One Belt One Road’ initiative. Give a brief description of CPEC and enumerate the reasons why India has distanced itself from the same. (2018)
