The Reserve Bank of India (RBI) has raised the repo rate to 5.5% as part of its calibrated approach to maintaining price stability.
What is the Repo Rate?
The repo rate is the interest rate at which the RBI provides short-term funds to commercial banks against eligible government securities.
Key Economic Implications:
A higher repo rate increases the cost of borrowing for banks and consumers.
Costlier credit can moderate aggregate demand and help contain inflationary pressures.
However, prolonged monetary tightening may affect private investment and consumption.
The policy therefore involves balancing inflation control with economic growth.
UPSC Relevance: GS-3 – Indian Economy | Monetary Policy | Inflation
Seasonal monsoon rainfall has recorded the second-lowest level in the past 70 years, raising concerns about its wider impact on agriculture, water resources and the rural economy.
Agriculture:
Lower rainfall can affect Kharif crop yields and may also disrupt the timely sowing of Rabi crops.
Water Resources:
Reduced precipitation can lead to declining reservoir levels and affect water availability for irrigation and other uses.
Power Generation:
Lower reservoir storage may reduce hydropower generation.
Rural Economy:
Agricultural stress can reduce rural purchasing power and contribute to food-price pressures.
UPSC Relevance: GS-1 – Physical Geography | Indian Monsoon | Agriculture
The Nobel Prize in Chemistry has recognised pioneering research related to molecules with mirror-image structures, highlighting the importance of molecular chirality in science and medicine.
Chiral molecules have structures that cannot be perfectly superimposed on their mirror images. They are comparable to the left and right hands, which are mirror images but not identical.
Chirality has major applications in the pharmaceutical sector because two mirror-image forms of the same molecule can interact differently with biological systems.
As a result:
One form may have a desired therapeutic effect.
Another form may produce a significantly different biological response.
Understanding molecular structure is therefore critical in drug development and pharmacology.
UPSC Relevance: GS-3 – Science & Technology | Biotechnology | Pharmaceuticals
India and the United Arab Emirates (UAE) have considerable potential to further expand their comprehensive strategic partnership across multiple sectors.
Bilateral trade and the Comprehensive Economic Partnership Agreement (CEPA)
Sovereign and strategic investments
Renewable energy and hydrocarbons
Critical and emerging technologies
Multimodal logistics and connectivity
Food security and supply chains
The UAE occupies an important position in India's engagement with West Asia. Stronger India–UAE cooperation can also contribute to India's wider regional initiatives, including the I2U2 framework.
UPSC Relevance: GS-2 – International Relations | India–West Asia Relations | I2U2
Special camps are being conducted across West Bengal as part of the Special Intensive Revision (SIR) process to address issues related to electoral rolls and facilitate the inclusion of eligible voters.
The exercise seeks to:
Ensure eligible citizens are included in electoral rolls.
Reduce the possibility of wrongful exclusion.
Strengthen the principle of universal adult franchise.
Improve the accuracy and integrity of electoral records ahead of elections.
Article 324 gives the Election Commission of India (ECI) the constitutional authority of superintendence, direction and control over the preparation of electoral rolls and the conduct of elections.
UPSC Relevance: GS-2 – Election Commission | Electoral Reforms | Constitutional Bodies
India faces a structural merchandise trade deficit with China, while its trade relationship with the United States provides an important source of export earnings.
This trade pattern highlights the importance of maintaining diversified and resilient international trade relationships.
Any significant:
Increase in tariff barriers,
Decline in U.S. demand, or
Disruption in major export markets
could affect India's export revenues and place pressure on the current account, exchange rate and foreign-exchange position.
India needs to:
Diversify its export destinations.
Expand and strengthen its export basket.
Make effective use of Free Trade Agreements (FTAs).
Integrate more deeply into regional and global value chains.
Improve domestic manufacturing competitiveness.
UPSC Relevance: GS-3 – International Trade | Balance of Payments | Export Competitiveness
A forum in Arunachal Pradesh has raised concerns regarding a technical issue on an SBI recruitment portal that reportedly affected the ability of eligible candidates to select Scheduled Tribe (ST) reservation.
Scheduled Tribe status is determined through the constitutional framework under Article 342. Recognition is based on the notified communities and the applicable constitutional and legal framework.
The issue highlights the importance of ensuring that recruitment systems accurately implement constitutionally recognised reservation provisions.
UPSC Relevance: GS-2 – Social Justice | Reservation | Scheduled Tribes | Constitutional Provisions
Two cheetahs, Vyom and Neera, have been introduced into Madhya Pradesh's Veerangana Durgavati Tiger Reserve.
The development expands the geographical footprint of Project Cheetah beyond its existing conservation sites.
The creation of additional habitat sites can:
Reduce concentration-related risks within a single landscape.
Provide additional habitat for the growing cheetah population.
Expand the available prey base.
Reduce territorial pressure in areas with high population density.
The new site becomes the third habitat node under Project Cheetah after Kuno National Park and Gandhi Sagar Wildlife Sanctuary.
UPSC Relevance: GS-3 – Biodiversity | Wildlife Conservation | Project Cheetah
Karnataka has indicated its intention to seek a review of the existing Cauvery water allocation, citing changed circumstances and referring to broader principles associated with interstate river-water disputes.
The Cauvery dispute involves:
Karnataka
Tamil Nadu
Kerala
Union Territory of Puducherry
Article 262 of the Constitution deals with the adjudication of disputes relating to the waters of interstate rivers and river valleys.
The Inter-State River Water Disputes Act, 1956 provides the statutory framework for addressing such disputes.
UPSC Relevance: GS-2 – Federalism | Inter-State Water Disputes | Article 262
Discussions within the GST Council are increasingly focusing on structural and procedural reforms in addition to changes in tax rates and slabs.
The major areas of focus include:
Simplifying the GST structure.
Improving automated compliance mechanisms.
Making Input Tax Credit (ITC) matching more efficient.
Strengthening technology-driven tax administration.
Developing more efficient dispute-resolution mechanisms.
Using data analytics to detect and prevent tax evasion.
The GST Council is a constitutional body established under Article 279A. It serves as an important platform for cooperative fiscal decision-making between the Union and the States.
UPSC Relevance: GS-3 – GST | Fiscal Federalism | Taxation | Cooperative Federalism
India continues to face challenges in controlling the transmission of leprosy, with persistent cases, childhood infections and instances of Grade-2 disability remaining areas of concern.
The occurrence of leprosy among children can indicate ongoing transmission within communities. It therefore highlights the need for early detection and stronger disease-control interventions.
Effective control requires:
Active case detection.
Contact tracing.
Post-Exposure Prophylaxis (PEP).
Early diagnosis.
Timely Multidrug Therapy (MDT).
Measures to prevent long-term disability.
Causative Organism: Mycobacterium leprae
UPSC Relevance: GS-2 – Health | Public Health | Disease Control
The cement industry is a critical component of India's infrastructure and construction sector. However, it is also considered a hard-to-abate industry because of its significant carbon emissions.
A substantial share of emissions arises from:
Limestone Calcination:
The chemical conversion of limestone during cement production generates process-related carbon dioxide emissions.
Energy Consumption:
Cement manufacturing also requires substantial thermal and electrical energy, contributing further to its carbon footprint.
India can reduce emissions from the sector through:
Greater use of low-carbon and blended cements.
Adoption of LC3 (Limestone Calcined Clay Cement).
Alternative fuels and raw materials.
Co-processing of suitable industrial waste.
Improved energy efficiency.
Greater adoption of renewable energy.
Carbon Capture, Utilisation and Storage (CCUS) technologies.
Decarbonising the cement sector will be important for aligning industrial growth with India's long-term net-zero objectives.
UPSC Relevance: GS-3 – Environment | Climate Change | Industry | Net Zero
“India’s economic resilience is increasingly challenged by external trade pressures, climate variability and the carbon intensity of key industries.” Discuss the measures India should adopt to strengthen export competitiveness and achieve its net-zero targets.
Word Limit: 150 words
Marks: 10
Relevant Paper: GS Paper 3 – Economy & Environment
While attempting this question, candidates should establish linkages between:
External Trade Pressures → Export Competitiveness → Economic Resilience
and
Climate Variability + Industrial Emissions → Sustainable Growth → Net-Zero Transition
A balanced answer should include both short-term policy measures and long-term structural reforms.