Source: Down To Earth Context India’s Andhra Pradesh Community Managed Natural Farming (APCNF) programme has won the prestigious 2026 Food Planet Prize, awarded in Båstad, Sweden. The Food Planet Prize is the world’s largest environmental award dedicated to transforming global food systems, established by Sweden’s Curt Bergfors Foundation. APCNF, launched in 2016, won over 1,000 international nominations from six continents, and now scales across 1.8 million farming families and 3,40,000 women’s Self Help Groups (SHGs) in Andhra Pradesh. Key Facts Indicator Detail Award Food Planet Prize 2026 Award venue Båstad, Sweden Awarding body Curt Bergfors Foundation, Sweden Winner Andhra Pradesh Community Managed Natural Farming (APCNF) programme, India Implementing agency for APCNF Rythu Sadhikara Samstha (RySS), under Andhra Pradesh’s agriculture department APCNF launch year 2016 Grand prize amount USD 1.5 million Prize for specialised international finalists USD 150,000 each About the Food Planet Prize: About Andhra Pradesh Community Managed Natural Farming (APCNF): About Natural Farming: Practice MCQs Q1. With reference to the 2026 Food Planet Prize, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None Q2. With reference to the Andhra Pradesh Community Managed Natural Farming (APCNF) programme, consider the following statements: 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 (Statement 4 is wrong; APCNF is a chemical-free natural farming approach, NOT one that promotes heavy use of chemicals.) Q3. With reference to the architecture of the Food Planet Prize, consider the following statements: 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 (Statement 4 is wrong; the prize specifically funds early-stage, high-potential projects, NOT only legacy projects.) Q4. Consider the following statements about natural farming and related policies 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 (Statement 4 is wrong; natural farming is the opposite of industrial high-input agriculture, and does not depend on GM seeds.) Answer Key Exam Relevance NABARD Grade A Very high importance, sustainable agriculture, SHGs, rural development
RBI to Release Updated List of Upper Layer NBFCs Soon
Context: The Reserve Bank of India (RBI) will soon release the updated list of Upper Layer NBFCs (NBFC-UL), Governor Sanjay Malhotra said at the post-policy press conference. The central bank has not released a list of Upper Layer NBFCs for the financial year ended March 2026. Meanwhile, Tata Sons, the holding company of the Tata Group, has sought to de-register as an Upper Layer NBFC, which would exempt it from the mandatory listing requirement (deadline was September 2025). The RBI has said the matter is under examination, with the process for finalising the revised list underway. About the Scale-Based Regulation (SBR) for NBFCs: About the Upper Layer NBFCs and Listing Requirement: About NBFCs: Practice MCQs Q1. With reference to the RBI’s announcement on Upper Layer NBFCs, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None Q2. With reference to the Scale-Based Regulation (SBR) framework for NBFCs, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None Q3. With reference to Non-Banking Financial Companies (NBFCs) in India, consider the following statements: 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 Tata Sons and Upper Layer NBFC classification, consider the following statements: 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 (Statement 4 is wrong; the RBI has said that Tata Sons’ application is under examination, NOT that it has been formally accepted.) Answer Key
RBI MPC Holds Repo Rate at 5.25 %
Source: The Hindu, June 2026 Context The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has unanimously voted to hold the policy repo rate at 5.25 per cent under the Liquidity Adjustment Facility (LAF) and continue with the neutral stance. The decision was driven by a deteriorating global environment, with the West Asia conflict, extended supply-chain disruptions, elevated energy prices, and uncertainty over the south-west monsoon and El Niño. The MPC has cut its real GDP growth projection for 2026-27 to 6.6 per cent (from 6.9 per cent) and raised the CPI inflation projection to 5.1 per cent (from 4.6 per cent, that is, 50 bps higher). Key Facts Key Terms (Simple) Practice MCQs Q1. With reference to the RBI MPC’s latest decisions, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None (Statement 4 is wrong; the MPC has raised the CPI projection for 2026-27 to 5.1 per cent, which is 50 bps higher than the earlier projection.) Q2. Consider the following statements about the RBI’s revised projections for 2026-27: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None Q3. With reference to the institutional framework of India’s monetary policy, consider the following statements: 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 (Statement 4 is wrong; the bank rate is the rate at which the RBI lends to commercial banks and is set by the RBI, not by banks themselves.) Q4. Consider the following statements about the global and domestic backdrop influencing the MPC’s decision: 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 (Statement 4 is wrong; the MPC explicitly discussed global supply chains and conflict spillovers in its reasoning, which means monetary policy is closely connected to global conditions.) Answer Key Exam Relevance Banking (RBI Gr B, SBI PO, IBPS, NABARD) Very high importance, MPC decisions, rates, inflation framework RBI Grade B Core area, Economic and Social Issues, Finance and Management
Jai Prakash Narayan Bird Sanctuary (Surha Tal), Ballia, Becomes India’s 100th Ramsar Site on World Environment Day
Source: TOI Context: The Jai Prakash Narayan Bird Sanctuary, also known as Surha Tal, located in Ballia district, Uttar Pradesh, has been designated as India’s 100th Ramsar Site on World Environment Day (5 June 2026). It is Uttar Pradesh’s 13th Ramsar Site. Surha Tal is a freshwater wetland in the middle stretch of the Ganga River basin, recognised for its ecological importance and role as a bird habitat. Key Facts Indicator Detail New Ramsar Site Jai Prakash Narayan Bird Sanctuary (Surha Tal) Location Ballia district, Uttar Pradesh Type of wetland Freshwater wetland in the middle stretch of the Ganga River basin India’s Ramsar Site count 100 (Surha Tal is the 100th) Uttar Pradesh’s Ramsar Site count 13 (Surha Tal is UP’s 13th) Date of designation 5 June 2026, World Environment Day Underlying treaty Ramsar Convention on Wetlands, 1971 About Surha Tal (Jai Prakash Narayan Bird Sanctuary): About the Ramsar Convention: About India’s Ramsar Sites: About World Environment Day: Key Terms (Simple): Practice MCQs Q1. With reference to the recent Ramsar designation, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None Q2. With reference to the Ramsar Convention, consider the following statements: 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 (Statement 4 is wrong; the Ramsar Convention is an independent intergovernmental treaty and is NOT administered by the WTO.) Q3. Consider the following statements about wetlands and Ramsar Sites: 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 (Statement 4 is wrong; wetlands are extremely important for migratory birds and are key parts of major bird conservation strategies globally.) Q4. With reference to World Environment Day, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None Answer Key
Cabinet Approves ₹10,000 Crore Price Stabilization Fund for ATF
Source: News on Air Context: The Union Cabinet has approved a one-time budgetary support package of up to ₹10,000 crore to establish a Price Stabilization Fund for Aviation Turbine Fuel (ATF), in response to unprecedented global fuel volatility triggered by the West Asia crisis. International ATF prices surged 2.5 times, from ₹60.50 per litre in March 2026 to ₹142 per litre in May 2026. The fund will offer interest-free advances to Oil Marketing Companies (OMCs), shield Scheduled Indian Airlines from extreme fuel costs, and protect passenger fares and air connectivity. Key Facts Indicator Detail Fund name Price Stabilization Fund for Aviation Turbine Fuel (ATF) Approving authority Union Cabinet Budgetary support Up to ₹10,000 crore (one-time, interest-free) Routing Demands for Grants of the Ministry of Petroleum and Natural Gas Beneficiaries All willing Scheduled Indian Airlines (domestic and international flight paths) Trigger West Asia crisis and global ATF price spike MoU signatories Participating airlines, OMCs, Ministry of Civil Aviation, Ministry of Petroleum and Natural Gas Monitoring Committee composition Ministry of Civil Aviation, Ministry of Petroleum and Natural Gas, and Department of Expenditure About the Aim of the Fund: Key Features: Practice MCQs Q1. With reference to the recently approved Price Stabilization Fund for Aviation Turbine Fuel (ATF), consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None (Statement 4 is wrong; the fund operates on a revolving, non-deficit model, with true-up recovery when prices fall, and is not a permanent subsidy.) Q2. With reference to the structure and operation of the fund, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None Q3. With reference to Aviation Turbine Fuel (ATF) and India’s policy backdrop, consider the following statements: 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 (Statement 4 is wrong; ATF prices are closely linked to global crude oil prices and the Import Parity Price (IPP) mechanism.) Q4. With reference to oversight and governance of the ATF Price Stabilization Fund, consider the following statements: 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 (Statement 4 is wrong; the fund is overseen by the tri-ministerial Monitoring Committee, NOT the RBI.) Answer Key
Daily Current Affairs (DCA) 6 June, 2026
Daily Current Affairs Quiz6 June, 2026 National Affairs 1. India and UK Launch Critical Minerals Global Supply Chain Observatory (GSCO) in New Delhi Source: PIB Context India and the United Kingdom have formally launched the Critical Minerals Global Supply Chain Observatory (GSCO) in New Delhi, a bilateral intelligence platform designed to monitor global supply chains for critical minerals in real time. The Observatory was conceived during the India-UK Prime Ministers’ bilateral engagement in October 2025 and formalised through a Research Collaboration Agreement in March 2026. It operates under the umbrella of India’s National Critical Mineral Mission (NCMM) and the broader India-UK Technology Security Initiative, aimed at securing trusted access to strategic resources for clean energy, electric mobility, and advanced manufacturing. Key Facts Indicator Detail Initiative Critical Minerals Global Supply Chain Observatory (GSCO) Member nations India and the United Kingdom Launch venue New Delhi Conceived during India-UK PMs’ bilateral engagement, October 2025 Formalised through Research Collaboration Agreement, March 2026 Linked Indian programme National Critical Mineral Mission (NCMM) Broader bilateral framework India-UK Technology Security Initiative Stakeholders involved Ministry of Mines, Ministry of External Affairs, British High Commission, industry leaders, research institutions Aim of the GSCO: Key Features of the GSCO: About Critical Minerals: About the National Critical Mineral Mission (NCMM): About the India-UK Technology Security Initiative: Practice MCQs Q1. With reference to the Critical Minerals Global Supply Chain Observatory (GSCO), consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None Q2. With reference to the aims and features of the GSCO, consider the following statements: 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 (Statement 4 is wrong; the GSCO is aimed at strengthening trusted supply chains and shielding democracies from market monopolies and supply shocks, NOT at restricting trade between them.) Q3. With reference to critical minerals and India’s policy framework, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None Q4. With reference to India-UK cooperation on critical minerals, consider the following statements: 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 (Statement 4 is wrong; the GSCO is a bilateral initiative between India and the United Kingdom, NOT a multilateral G20 platform.) Answer Key 2. India’s First Flex-Fuel Passenger Vehicle Launched by Maruti Suzuki Source: News on Air Context: The Union Minister for Petroleum and Natural Gas has launched India’s first Flex-Fuel Passenger Vehicle, developed by Maruti Suzuki, in New Delhi. A Flex-Fuel Vehicle (FFV) is an advanced car with an internal combustion engine that can run on different petrol-ethanol blends, from E20 (20 per cent ethanol) all the way to E100 (100 per cent ethanol). The launch is being seen as a new chapter in India’s energy transition, supporting ethanol-blended fuels, lower emissions, and reduced crude oil imports. Key Facts Indicator Detail Vehicle India’s first Flex-Fuel Passenger Vehicle Developer Maruti Suzuki Launched by Union Minister for Petroleum and Natural Gas Launch venue New Delhi Fuel range supported From E20 (20 per cent ethanol) to E100 (100 per cent ethanol) Mono-fuel standard for FFVs in India E85 (identified by NITI Aayog and BIS) Classification of high-blend ethanol FFVs Zero-Emission Vehicles (per NITI Aayog) Ethanol feedstock sources in India Broken grains, agricultural waste, bamboo, and seaweed About Flex-Fuel Vehicles (FFVs): How an FFV Works (Simple Steps)? About India’s Ethanol-Blended Petrol (EBP) Programme: Practice MCQs Q1. With reference to India’s first Flex-Fuel Passenger Vehicle, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None Q2. With reference to how a Flex-Fuel Vehicle works, consider the following statements: 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 (Statement 4 is wrong; Flex-Fuel Vehicles use a single, unified fuel tank for all blends from E20 to E100.) Q3. With reference to ethanol-blended petrol and India’s policy, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None Q4. With reference to the FFV ecosystem in India, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None Answer Key Exam Relevance Exam Relevance UPSC Prelims GS Paper III on Science and Technology, Environment, Energy (Biofuels, FFVs, NITI Aayog, BIS) UPSC Mains GS Paper III on Indian Economy, Energy Security, Environment, Sustainable Development BPSC and State PCS Science and Technology, Environment, Current Affairs Banking and NABARD General Awareness on energy and rural economy NABARD Grade A Bioethanol, rural feedstocks, sustainable agriculture 3. Cabinet Approves ₹10,000 Crore Price Stabilization Fund for ATF Source: News on Air Context: The Union Cabinet has approved a one-time budgetary support package of up to ₹10,000 crore to establish a Price Stabilization Fund for Aviation Turbine Fuel (ATF), in response to unprecedented global fuel volatility triggered by the West Asia crisis. International ATF prices surged 2.5 times, from ₹60.50 per litre in March 2026 to ₹142 per litre in May 2026. The fund will offer interest-free advances to Oil Marketing Companies (OMCs), shield Scheduled Indian Airlines from extreme fuel costs, and protect passenger fares and air connectivity. Key Facts Indicator Detail Fund name Price Stabilization Fund for Aviation Turbine Fuel (ATF) Approving authority Union Cabinet Budgetary support Up to ₹10,000 crore (one-time, interest-free) Routing Demands for Grants of the Ministry of Petroleum and Natural Gas Beneficiaries All willing Scheduled Indian Airlines (domestic and international flight paths)
Daily Current Affairs (DCA) 5 June, 2026
Daily Current Affairs Quiz5 June, 2026 National Affairs 1. Navachar Mantra Initiative, Supplementary Revision Pack Source: PIB Context: Building on the earlier launch coverage, this update gives a closer look at Navachar Mantra’s target demographics, eligibility, six priority sectors, and structured 1-year incubation cycle. The initiative is a flagship scheme of the Ministry of Skill Development and Entrepreneurship (MSDE), implemented by NIESBUD, and aimed at identifying, supporting, and scaling grassroots innovations from Tier-2, Tier-3, and rural India. Key Facts Indicator Detail Initiative Navachar Mantra Ministry Ministry of Skill Development and Entrepreneurship (MSDE) Implementing agency NIESBUD (National Institute for Entrepreneurship and Small Business Development) Target age group 18 to 55 years Target geography Aspirational districts, underserved geographies, and smaller towns Eligibility Open to ideas in validation phase or early prototype stage; no need for a registered corporate entity or a finished product Engagement duration 1-year structured incubation Application deadline 5 July 2026 Six Priority Operational Sectors: About the Programme’s Design and Approach: What are Aspirational Districts? Practice MCQs Q1. With reference to the Navachar Mantra initiative, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None (Statement 4 is wrong; Navachar Mantra has flexible eligibility, and ideas in validation phase or early prototype stage are also eligible.) Q2. Consider the following statements about the priority sectors under Navachar Mantra: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None Q3. With reference to the structure of Navachar Mantra, consider the following statements: 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 (Statement 4 is wrong; Navachar Mantra is a flagship scheme of the MSDE, NOT the Ministry of Corporate Affairs.) Q4. Consider the following statements about the Aspirational Districts Programme of NITI Aayog: 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 (Statement 4 is wrong; the Aspirational Districts Programme is run by NITI Aayog, NOT by the RBI or Ministry of Finance.) Answer Key Exam Relevance Exam Relevance UPSC Prelims GS Paper II on Government Schemes (MSDE, Skill India, Entrepreneurship, Aspirational Districts) UPSC Mains GS Paper II on Welfare and Government policies; GS Paper III on Skill development, Entrepreneurship, Inclusive growth BPSC and State PCS Schemes, Skill Development, Rural Innovation, Current Affairs Banking (RBI Gr B, SBI PO, IBPS, NABARD) General Awareness on skilling and entrepreneurship NABARD Grade A Rural entrepreneurship and grassroots innovation SIDBI Grade A Entrepreneurship, innovation finance, start-up ecosystem 2. 14th Dalai Lama Formally Receives Grammy Award for Audiobook “Meditations” Source: The New Indian Express Context: The 14th Dalai Lama, the Tibetan spiritual leader, has formally received his physical Grammy Award at his official residence in Dharamshala (McLeodganj), Himachal Pradesh, in June 2026. The 90-year-old leader won the award for his spoken-word audiobook album titled “Meditations: The Reflections of His Holiness the Dalai Lama”, which had won at the 68th Annual Grammy Awards in Los Angeles. He becomes the first person holding the paramount position in Tibetan Buddhism to win a Grammy Award. The album won in the “Best Audio Book, Narration, and Storytelling Recording” category. Key Facts Indicator Detail Awardee 14th Dalai Lama (Tenzin Gyatso), age 90 Award Grammy Award (68th Annual Grammy Awards) Album title “Meditations: The Reflections of His Holiness the Dalai Lama” Album category Best Audio Book, Narration, and Storytelling Recording Award venue (original ceremony) Los Angeles, USA Trophy accepted on his behalf at the ceremony by Musician Rufus Wainwright Formal handover location Dharamshala (McLeodganj), Himachal Pradesh Historic significance First Tibetan Buddhist supreme leader to win a Grammy Producer of the album Kabir Sehgal (multi-Grammy winner) Number of tracks 10 specialised tracks First Grammy Award ceremony 4 May 1959 About the Album “Meditations”: About the Grammy Awards: Who is 14th Dalai Lama? Practice MCQs Q1. With reference to the 14th Dalai Lama’s Grammy Award, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None Q2. With reference to the Grammy Awards, consider the following statements: 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 (Statement 4 is wrong; the Grammy Awards are presented by the Recording Academy in the United States, NOT by UNESCO.) Q3. Consider the following statements about the album “Meditations”: 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 (Statement 4 is wrong; the album features international collaborations with artists like Andra Day, Maggie Rogers, Tony Succar, Ted Nash, Debi Nova, and Rufus Wainwright.) Q4. With reference to the 14th Dalai Lama, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None Answer Key 3. India Hosts 1st World Yogasana Sports Championship 2026 at Ahmedabad Source: PIB Context: The Prime Minister of India is set to virtually inaugurate the 1st World Yogasana Sports Championship 2026, a first-of-its-kind global tournament that transforms yoga into a structured, competitive sport. The 5-day inaugural event is being held at the EKA Arena in Ahmedabad, Gujarat. The championship is organised by Yogasana Bharat in association with the World Yogasana Body and the Indian Olympic Association (IOA), and aims to standardise rules, scoring, and governance for competitive yoga to pave the way for its inclusion in the Olympics, Asian Games, and Commonwealth Games. Key Facts Indicator Detail Event 1st World Yogasana Sports Championship 2026 Inauguration Virtually by the
Daily Current Affairs (DCA) 4 June, 2026
Daily Current Affairs Quiz4 June, 2026 International Affairs 1. USTR Proposes 12.5 Per Cent Additional Tariff on India Source: TNIE Context: The Office of the United States Trade Representative (USTR) has proposed an additional 12.5 per cent tariff on imports from India and 53 other countries, alleging their failure to effectively enforce prohibitions on goods produced using forced labour. The proposal is not final, with written submissions due by 6 July and public hearings scheduled for 7 July 2026. The proposal comes under Section 301 of the US Trade Act, 1974, even as India and the US are close to finalising an interim bilateral trade deal. Key Facts Indicator Detail Proposed extra tariff 12.5 per cent Total countries listed 54 (including India) Legal basis Section 301 of the US Trade Act, 1974 Status Not final What is Section 301 of the US Trade Act? Section 301 empowers the US government to: (a) Investigate unfair trade practices by foreign countries. (b) Impose tariffs or trade restrictions if such practices are seen as harmful to US commerce. Reason for the investigation: The US has alleged that certain countries failed to effectively prevent imports of goods produced using forced labour. India’s response: The Ministry of Commerce and Industry has said that India remains engaged with the US regarding: (a) Section 301 proceedings. (b) Interim trade agreement negotiations. Sectors likely to be impacted (labour-intensive): Sector Textiles Garments Leather products Carpets Brassware What is “Forced Labour”? According to international labour standards (notably the ILO Forced Labour Convention, 1930, Convention 29), forced labour is work extracted under threat, coercion, or without voluntary consent. About the News (Q&A) What is the USTR’s proposal? An additional 12.5 per cent tariff on imports from India and 53 other countries, on the grounds that they have failed to effectively enforce prohibitions on goods produced using forced labour. Under what law has this been proposed? Section 301 of the US Trade Act, 1974, which allows the US to investigate and act against unfair trade practices considered harmful to US commerce. Background Concepts (Q&A) What is “Section 301 of the US Trade Act, 1974”, and Why is It Significant? Section 301 of the US Trade Act, 1974 is a US domestic law that gives the Office of the United States Trade Representative (USTR) wide authority to investigate and respond to foreign trade practices considered unjustified, unreasonable, or discriminatory, and that burden or restrict US commerce. Under Section 301, the USTR can: (a) Impose additional tariffs on imports from specific countries. (b) Suspend trade concessions previously granted. (c) Restrict services trade or investment. (d) Take other appropriate actions. Section 301 has been controversial because it is a unilateral instrument, meaning the US can act based on its own investigation rather than through multilateral processes like the WTO Dispute Settlement Mechanism. It has been used in recent years against China (during the 2018-19 trade war), the European Union (digital services taxes), Vietnam, and India on various issues, including intellectual property protection, digital taxes, and now forced-labour enforcement. What is “Forced Labour”, and How is It Defined in International Law? Forced labour is defined by the International Labour Organization (ILO) Forced Labour Convention, 1930 (Convention 29) as “all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily.” Forced labour includes: (a) Bonded labour (debt-driven coercion). (b) State-imposed forced labour. (c) Trafficking in persons for labour exploitation. (d) Coerced labour of migrants, prisoners, or members of religious or ethnic minorities. Key international and Indian legal instruments: (a) ILO Conventions 29 (1930) and 105 (1957): on forced labour and its abolition. India is a party to both. (b) Universal Declaration of Human Rights (UDHR), 1948: prohibits slavery and servitude. (c) Bonded Labour System (Abolition) Act, 1976 (India). (d) Article 23 of the Indian Constitution: prohibits trafficking and forced labour. The US Tariff Act of 1930, Section 307 prohibits the import of goods made with forced labour, and is enforced by the US Customs and Border Protection (CBP) through Withhold Release Orders (WROs). The Uyghur Forced Labor Prevention Act, 2021 is the most prominent recent example, presuming goods from Xinjiang (China) to be made with forced labour unless proven otherwise. Practice MCQs Q1. With reference to the USTR’s recent proposal for an additional 12.5 per cent tariff, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None (Statement 4 is wrong; the proposal is not yet final, and is subject to public hearings and written submissions before a final decision.) Q2. Consider the following statements about Section 301 of the US Trade Act, 1974: Which of the above are correct? (a) 1, 2 and 4 only (b) 1, 3 and 4 only (c) 2 and 3 only (d) 1 and 4 only (e) All four (Statement 3 is wrong; Section 301 is a US domestic law, NOT part of the WTO Dispute Settlement Understanding.) Q3. With reference to Indian export sectors potentially affected by the proposed USTR tariff, consider the following statements: 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 (Statement 4 is wrong; the proposed tariff is on goods, NOT on IT services or software.) Q4. Consider the following statements about forced labour and the ILO framework: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None Answer Key PYQ Reference [Prelims 2018] International Labour Organization’s Conventions 138 and 182 are related to: (a) Child labour ← CORRECT (b) Adaptation of agricultural practices to global climate change (c) Regulation of food prices and food security (d) Gender parity at the workplace ILO Convention 138 (1973) is the Minimum Age Convention for employment, while ILO Convention 182 (1999) is the
RBI Annual Report 2025-26
Source: RBI Context: The Reserve Bank of India has released its Annual Report 2025-26, a statutory report of its Central Board of Directors covering its working and functions from April 2025 to March 2026. The report shows an Indian economy that grew at 7.6 per cent, with sharp food deflation pulling CPI to 2.1 per cent, alongside a depreciating rupee, FPI outflows, falling Sensex, a widening trade deficit cushioned by services and remittances, and an RBI that cut the policy repo rate by 100 bps to 5.25 per cent while running a larger balance sheet (26.4 per cent of GDP) through the West Asia conflict-driven external stress. PART ONE: THE ECONOMY Chapter I: Taking Stock and Looking Forward The World Economy Worldwide output expanded 3.4% during 2025, a touch above the 3.3% recorded in 2024. The year was a tug-of-war: steep tariffs, mounting public debts, and murky trade rules dragged on activity, while early stockpiling of imports ahead of tariffs, the reshaping of supply chains, and a wave of AI-driven technology spending propped it up. Once hostilities erupted in West Asia in the final days of February 2026, the IMF trimmed its 2026 global growth call to 3.1%. Trade told a similar story. The total volume of goods and services traded across borders climbed 5.1% in 2025. Goods led with 4.6% growth as firms loaded up on technology inventory, whereas services cooled to 5.3% once the rush of post-pandemic travel ran its course. For 2026, the IMF anticipates a marked slowdown to 2.8%. On prices, global inflation drifted down to 4.1% over 2025. With the West Asian flare-up snarling shipping lanes and supply networks, however, the Fund nudged its 2026 inflation projection up to 4.4%. India’s Economy India held on to its title as the quickest-expanding major economy. Real GDP rose 7.6% in 2025-26, building on the prior year’s 7.1%, with buoyant household demand and dependable investment doing the heavy lifting. Looking to 2026-27, growth is pencilled in at 6.9%, though the balance of risks tilts downward given the threat of dearer freight and energy from overseas. Inflation eased dramatically. Headline CPI cooled to 2.1% in 2025-26 from 4.6% a year earlier, almost entirely because food turned cheaper. The forecast for 2026-27 sits at 4.6%, with risks pointing higher. Chapter II: The Economy in Detail The Real Economy On the demand side, consumer spending continued to anchor the economy. It quickened to 7.7% in 2025-26 from 5.8%, lifted by firm appetite in both rural and urban markets. Investment in physical assets such as plants and machinery advanced a healthy 7.1%, and the broader investment-to-GDP ratio held firm at 34.3% in 2024-25. Savings improved as well. National savings reached 34.2% of disposable income in 2024-25, households’ net financial savings edged up to 7.0%, and the government’s shortfall between earning and spending narrowed to 4.6% of GDP from 5.3%. Closing this gap between what the nation saves and invests has left India leaning less heavily on fickle foreign capital. Turning to supply, farming lost momentum, slowing to 2.4% from 4.2% as poor weather hit the monsoon (Kharif) harvest. A generous South-West monsoon offered relief, though, pushing reservoir levels to a record 91.4% by October 2025 and giving the winter and summer crops a boost. Come end-March 2026, the government’s grain reserves stood at over four times the legally required cushion. Industry was a standout, growing 9.5% versus 8.7% the year before, with manufacturing surging 11.5% and factory utilisation climbing to 75.6% by the third quarter. The clean-energy push also hit milestones: renewable capacity passed 250 GW, total non-fossil capacity reached 283 GW — more than half (53.2%) of the power mix — fulfilling the COP26 pledge years ahead of 2030, while EV sales topped 25 lakh units under PM E-DRIVE. Services, contributing 69% of real growth, grew 8.7%, powered by trade, transport, hospitality, and professional finance and IT work. Prices A new price-measurement framework arrived in February 2026, when MoSPI rolled out a CPI series rebased to 2024, refreshing the basket using the 2023-24 household spending survey. Food and beverages saw their weight cut from 45.9% to 36.8%, ready meals were folded into restaurants and accommodation, a single housing-and-fuel category was carved out at 17.7%, and transport (8.8%) and information and communication (3.6%) were given their own slots. Behind the headline numbers, food prices slipped 0.8% from April to December 2025. Tomatoes, onions, and potatoes plunged 31.3% as onion output jumped 26.7% and buffer stocks were released; pulses also fell, down 13%. Cutting the other way, edible oils and fats vaulted 15.0% on the back of global palm-oil biodiesel rules. Fuel inflation crept up to 2.4% over the same stretch after LPG cylinders rose ₹50 in April 2025 and another ₹60 in March 2026. Stripping out food and fuel, core inflation lingered near 4.3% (3.7% in the fourth quarter under the new series), kept warm by personal-care costs — chiefly gold and silver, which spiked as nervous investors sought shelter. Elsewhere, wholesale inflation softened to 0.7% from 2.3% on cheaper energy, and the GDP deflator fell to 0.9% from 2.5%. Money and Credit The RBI’s balance sheet equalled 26.4% of GDP. After accounting for the staggered one-percentage-point cut to the Cash Reserve Ratio — which brought the requirement down to 3.0% — reserve money grew 10.8%, while cash in public hands rose 11.4% on welfare payouts and stronger retail spending after tax cuts. Broad money expanded 13.0%, up from 9.4%, aided by a 10.6% rise in time deposits; the currency-to-deposit ratio dipped to 14.9% and the money multiplier firmed to 6.1. Lending stayed robust. Non-food bank credit grew 15.9%, with non-bank credit up 13.3%. Loans to micro and small firms leapt 33.1% and to medium firms 21.7%; personal loans rose 16.2%, of which housing made up close to half; and bank lending to NBFCs climbed 26.3% once the RBI reset risk weights to normal in April 2025. Because credit outran deposits, the funding gap widened, nudging banks to issue more Certificates
USTR Proposes 12.5 Per Cent Additional Tariff on India
Source: TNIE Context: The Office of the United States Trade Representative (USTR) has proposed an additional 12.5 per cent tariff on imports from India and 53 other countries, alleging their failure to effectively enforce prohibitions on goods produced using forced labour. The proposal is not final, with written submissions due by 6 July and public hearings scheduled for 7 July 2026. The proposal comes under Section 301 of the US Trade Act, 1974, even as India and the US are close to finalising an interim bilateral trade deal. Key Facts Indicator Detail Proposed extra tariff 12.5 per cent Total countries listed 54 (including India) Legal basis Section 301 of the US Trade Act, 1974 Status Not final What is Section 301 of the US Trade Act? Section 301 empowers the US government to: (a) Investigate unfair trade practices by foreign countries. (b) Impose tariffs or trade restrictions if such practices are seen as harmful to US commerce. Reason for the investigation: The US has alleged that certain countries failed to effectively prevent imports of goods produced using forced labour. India’s response: The Ministry of Commerce and Industry has said that India remains engaged with the US regarding: (a) Section 301 proceedings. (b) Interim trade agreement negotiations. Sectors likely to be impacted (labour-intensive): Sector Textiles Garments Leather products Carpets Brassware What is “Forced Labour”? According to international labour standards (notably the ILO Forced Labour Convention, 1930, Convention 29), forced labour is work extracted under threat, coercion, or without voluntary consent. About the News (Q&A) What is the USTR’s proposal? An additional 12.5 per cent tariff on imports from India and 53 other countries, on the grounds that they have failed to effectively enforce prohibitions on goods produced using forced labour. Under what law has this been proposed? Section 301 of the US Trade Act, 1974, which allows the US to investigate and act against unfair trade practices considered harmful to US commerce. Background Concepts (Q&A) What is “Section 301 of the US Trade Act, 1974”, and Why is It Significant? Section 301 of the US Trade Act, 1974 is a US domestic law that gives the Office of the United States Trade Representative (USTR) wide authority to investigate and respond to foreign trade practices considered unjustified, unreasonable, or discriminatory, and that burden or restrict US commerce. Under Section 301, the USTR can: (a) Impose additional tariffs on imports from specific countries. (b) Suspend trade concessions previously granted. (c) Restrict services trade or investment. (d) Take other appropriate actions. Section 301 has been controversial because it is a unilateral instrument, meaning the US can act based on its own investigation rather than through multilateral processes like the WTO Dispute Settlement Mechanism. It has been used in recent years against China (during the 2018-19 trade war), the European Union (digital services taxes), Vietnam, and India on various issues, including intellectual property protection, digital taxes, and now forced-labour enforcement. What is “Forced Labour”, and How is It Defined in International Law? Forced labour is defined by the International Labour Organization (ILO) Forced Labour Convention, 1930 (Convention 29) as “all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily.” Forced labour includes: (a) Bonded labour (debt-driven coercion). (b) State-imposed forced labour. (c) Trafficking in persons for labour exploitation. (d) Coerced labour of migrants, prisoners, or members of religious or ethnic minorities. Key international and Indian legal instruments: (a) ILO Conventions 29 (1930) and 105 (1957): on forced labour and its abolition. India is a party to both. (b) Universal Declaration of Human Rights (UDHR), 1948: prohibits slavery and servitude. (c) Bonded Labour System (Abolition) Act, 1976 (India). (d) Article 23 of the Indian Constitution: prohibits trafficking and forced labour. The US Tariff Act of 1930, Section 307 prohibits the import of goods made with forced labour, and is enforced by the US Customs and Border Protection (CBP) through Withhold Release Orders (WROs). The Uyghur Forced Labor Prevention Act, 2021 is the most prominent recent example, presuming goods from Xinjiang (China) to be made with forced labour unless proven otherwise. Practice MCQs Q1. With reference to the USTR’s recent proposal for an additional 12.5 per cent tariff, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None (Statement 4 is wrong; the proposal is not yet final, and is subject to public hearings and written submissions before a final decision.) Q2. Consider the following statements about Section 301 of the US Trade Act, 1974: Which of the above are correct? (a) 1, 2 and 4 only (b) 1, 3 and 4 only (c) 2 and 3 only (d) 1 and 4 only (e) All four (Statement 3 is wrong; Section 301 is a US domestic law, NOT part of the WTO Dispute Settlement Understanding.) Q3. With reference to Indian export sectors potentially affected by the proposed USTR tariff, consider the following statements: 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 (Statement 4 is wrong; the proposed tariff is on goods, NOT on IT services or software.) Q4. Consider the following statements about forced labour and the ILO framework: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None Answer Key PYQ Reference [Prelims 2018] International Labour Organization’s Conventions 138 and 182 are related to: (a) Child labour ← CORRECT (b) Adaptation of agricultural practices to global climate change (c) Regulation of food prices and food security (d) Gender parity at the workplace ILO Convention 138 (1973) is the Minimum Age Convention for employment, while ILO Convention 182 (1999) is the Worst Forms of Child Labour Convention. India ratified both in 2017. Quick memory hook: Exam Relevance Exam
