What mattered in the last day or two — from PIB, The Hindu and The Indian Express, written in our own words — then 21 questions in UPSC's formats. +2 for a right answer, −0.67 for a wrong one, 0 for a blank.
1. RBI Shifts to Calibrated Tightening; Repo Rate Hike Expected
The RBI raised the repo rate by 25 basis points, its first hike in over three years, and shifted its stance to 'calibrated tightening' to combat persistent inflation.
Repo rate increased by 25 basis points, marking the first hike in more than three years.
Monetary policy stance changed from 'neutral' to 'calibrated tightening'.
Governor Sanjay Malhotra stated that rate cuts are off the table in the near term.
Economists predict an additional 50-75 basis points hike in upcoming reviews.
Headline CPI inflation is projected to average nearly 5.8% in the next three quarters.
Key terms
Calibrated Tightening
— A monetary policy stance indicating that the central bank will gradually raise interest rates to curb inflation without causing abrupt economic disruption.
Repo Rate
— The key policy rate at which the Reserve Bank of India lends money to commercial banks; changes here influence broader lending rates in the economy.
Second Round Effects
— The impact of initial price increases (like fuel or food) on general wages and prices, leading to sustained higher inflation expectations.
2. 57th GST Council Meeting: Process Reforms and Registration Simplification
The 57th GST Council meeting focused on streamlining registration, returns, refunds, and adjudication processes to reduce officer interface and enhance trade facilitation.
3. India to release AI regulation consultation paper within a month
IT Minister Ashwini Vaishnaw announced that the government will soon issue a consultation paper on AI regulations, prioritizing safety, deepfake mitigation, and a human-centric approach.
4. GST Council 57th Meeting: Decriminalisation and Process Reforms
The 57th GST Council meeting focused on removing pre-prosecution arrest powers, raising prosecution thresholds, and implementing technological process reforms to enhance compliance ease and business liquidity.
Proposal to remove arrest powers in the pre-prosecution stage, replacing them with civil consequences like tax recovery, interest, and penalties.
Prosecution threshold for GST violations is likely to be increased from Rs 1 crore to Rs 5 crore.
Five major states (Maharashtra, Gujarat, UP, Karnataka, Andhra Pradesh) opposed sweeping curtailment of tax officers' powers, demanding graded arrest options for serious violations.
Introduction of an invoice matching system to automatically validate input tax credit and reduce mismatch notices.
Refund claims to be acknowledged within 10 days, with 90% released based on risk checks; no notices for amounts below Rs 10,000.
Key terms
Decriminalisation
— The process of removing criminal penalties (like arrest and prosecution) for certain offenses, replacing them with civil or administrative consequences.
Input Tax Credit (ITC)
— The credit allowed to a taxpayer for the tax paid on inputs (goods/services) used in the production of taxable goods or services.
Inverted Duty Structure
— A situation where the tax rate on inputs is higher than the tax rate on the final product, leading to a refund of the excess tax paid.
5. WWF Report: 73% Decline in Vertebrate Populations (1970-2022)
The WWF Living Planet Report 2026 reveals a 73% average decline in monitored vertebrate populations over 52 years, driven primarily by food and agriculture systems, though it highlights successful recoveries like tigers.
Average size of monitored vertebrate populations declined by 73% between 1970 and 2022.
Freshwater ecosystems recorded the steepest drop at 85%, followed by terrestrial (69%) and marine (59%).
The report identifies the way the world produces and consumes food as the single largest driver of biodiversity loss.
Global wild tiger numbers rose from 3,200 to approximately 5,700 between 2010 and 2025.
The Living Planet Index tracks relative abundance rather than absolute numbers or the count of lost individuals.
Key terms
Living Planet Index (LPI)
— A biennial indicator that measures changes in the size of wild populations of vertebrate species over time by tracking variations in relative abundance.
Relative Abundance
— A measure of the size of a population relative to its past state, used to track trends without relying on absolute individual counts.
6. India's New Bilateral Investment Treaty Framework
India is reviving its bilateral investment treaty network with a revised, investor-friendly model that reduces the waiting period for international arbitration while balancing state regulatory powers.
Finance Minister Nirmala Sitharaman announced the new BIT template will be approved by the Cabinet shortly.
New agreements have been signed or finalized with Saudi Arabia, Israel, and the UAE.
The 'Exhaustion of Local Remedies' (ELR) period has been reduced to two years in the Saudi deal and three years in the UAE deal.
The previous 2016 model mandated a five-year ELR period, which foreign investors criticized as too restrictive.
The new framework aims to attract sustained foreign direct investment amid a slowdown in net inflows.
Key terms
Bilateral Investment Treaty (BIT)
— An agreement between two countries defining rules for private investment, aiming to promote, protect, and clarify foreign investments.
Exhaustion of Local Remedies (ELR)
— A requirement for foreign investors to seek redress in the host country's domestic courts or administrative bodies before initiating international arbitration.
Investor-State Dispute Settlement (ISDS)
— A mechanism allowing foreign investors to bring claims against host states for alleged violations of treaty obligations through international arbitration.
The Prime Minister endorsed the GST Council's latest recommendations aimed at decriminalising tax administration and simplifying compliance procedures.
8. India Seeks Flexibility and Balanced Outcomes at Pre-COP31
At the Pre-COP31 meeting in Fiji, India urged global parties to adopt flexibility and pragmatism to secure an ambitious yet balanced climate outcome that respects national development pathways.
Union Minister Bhupender Yadav represented India at the Pre-COP31 Plenary in Nadi, Fiji.
India emphasized that higher climate ambition must be matched by scaled-up finance, technology transfer, and capacity-building.
The Minister highlighted Article 9.1 (finance) and Article 6 (cooperative approaches) of the Paris Agreement as key tools for implementation.
COP31 is scheduled to take place in Antalya, Türkiye, in November 2026.
India called for respecting 'nationally determined pathways' allowing countries to transition based on unique circumstances.
Key terms
Pre-COP
— A preparatory ministerial-level meeting held weeks before the annual UN Climate Change Conference to narrow down political differences and set agendas.
Article 9.1
— A provision in the Paris Agreement requiring developed countries to provide financial support to assist developing countries in mitigation and adaptation actions.
Article 6
— A mechanism in the Paris Agreement enabling voluntary cooperation between countries to achieve higher climate ambition through carbon markets and non-market approaches.
Nationally Determined Pathways
— Country-specific strategies for transitioning to low-carbon economies that account for unique national circumstances, development stages, and capabilities.
9. Govt Caps Margins on Non-Scheduled Cancer Drugs to Save ₹2,500 Crore
The government has approved a 30% cap on trade margins for non-scheduled anti-cancer drugs, aiming to reduce patient costs by up to 70% and save ₹2,500 crore annually.
10. MeitY Advises Social Media Platforms to Curb Manipulated Content
The IT Ministry issued an advisory urging social media platforms to proactively remove manipulated, out-of-context, and AI-generated content that threatens public order.
11. Kakodkar urges NSG membership to secure uranium supply
AEC member Anil Kakodkar highlighted the vulnerability of India's current nuclear fuel supply reliance on a temporary waiver, urging diplomatic efforts to secure full Nuclear Suppliers Group (NSG) membership and accelerate thorium…
Anil Kakodkar, Member of the Atomic Energy Commission (AEC), emphasized that India's access to international uranium is based on a revocable waiver, not permanent NSG membership.
The call for NSG membership was made at the 'Building India’s Nuclear Ecosystem' conference organized by IIT-Madras and DCIR in Chennai.
Kakodkar identified the SHANTI Act, 2025, as having legal restrictions that may hinder specific reactor designs like molten-salt reactors where back-end activities occur within the system.
T.S. Tirumurti noted that private capital and advanced manufacturing are becoming central to the global nuclear landscape, requiring India to shape its next chapter actively.
Key terms
Nuclear Suppliers Group (NSG)
— A multilateral export control regime that seeks to prevent nuclear proliferation by controlling exports of sensitive nuclear materials and technology.
SHANTI Act
— The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025, legislation aimed at promoting nuclear energy development in India.
Molten-Salt Reactor
— A type of nuclear reactor that uses molten salt as a coolant or fuel carrier, often associated with advanced back-end processing capabilities.
12. Centre caps trade margins on non-scheduled cancer drugs
The Union government has capped trade margins at 30% of MRP for all non-scheduled anti-cancer medicines to reduce out-of-pocket expenditure and address high distribution mark-ups.
Trade margins are capped at 30% of the Maximum Retail Price (MRP) for non-scheduled anti-cancer drugs.
The measure covers branded, generic, imported, domestic, patented, and non-patented products.
NPPA data showed average trade mark-ups were around 170%, reaching up to 700% in some cases.
An expert committee under DGHS will finalize the specific list of medicines covered.
Expected annual savings are estimated at ₹2,500 crore with price reductions up to 70% of MRP.
Key terms
Non-scheduled anti-cancer drugs
— Cancer medicines that are not included in the National List of Essential Medicines or other scheduled lists, thus previously subject to higher, unregulated trade margins.
Trade margin
— The profit percentage retained by distributors, wholesalers, and retailers in the supply chain between the manufacturer's price and the final retail price.
Drug Price Control Order, 2013
— The regulatory framework under which the National Pharmaceutical Pricing Authority (NPPA) derives its authority to regulate drug prices and invoke extraordinary powers for price control.
13. India-US Overcapacity Stance and Section 301 Tariff Implications
India joined a US-led G20 statement on structural overcapacity, potentially influencing the outcome of Section 301 investigations and future tariff rates.
The World Bank's 2026 report on AI's development potential was launched in India, highlighting the nation's role in scaling AI for agriculture, health, and governance.
16. NBA Collects Rs 9.68 Crore via ABS Framework in H1 FY2026
The National Biodiversity Authority received significant funds from biological resource users, reinforcing India's Access and Benefit Sharing mechanism for conservation.
17. JOSH Teams Launched to Accelerate Youth-Led TB Elimination
The Union Health Minister launched JOSH (Joint Squad for Health) Teams under the TB Mukt Bharat Abhiyaan to mobilize youth volunteers for community-based tuberculosis prevention, diagnosis, and stigma reduction.
Consider the following statements regarding Investor State Dispute Settlement (ISDS) mechanisms and global trends:
1. ISDS allows investors to bring claims against host states for alleged treaty violations.
2. Developed economies like the US, Canada, and EU members have recently strengthened their commitment to ISDS clauses in new trade agreements.
3. Developing nations like South Africa and Indonesia terminated multiple BITs primarily to preserve policy space against adverse international tribunal orders.
How many of the above statements are correct?
Answer: (b)
Statement 1 is correct: The text defines ISDS as a mechanism allowing investors to bring claims against host states for alleged treaty violations.
Statement 2 is incorrect: The text cites examples where the EU withdrew from the Energy Charter Treaty, and the US/Canada removed ISDS clauses from USMCA, indicating a move away from or restriction of ISDS, not strengthening it.
Statement 3 is correct: The text notes that South Africa and Indonesia terminated BITs to preserve policy space after seeing decisions by international tribunals encroaching on domestic policy.
a Statements 1 and 3 are both correct.
c Statement 2 is factually opposite to the trends described in the text.
With reference to the Nuclear Suppliers Group (NSG) and India's status therein, consider the following statements:
1. India is currently a full member of the NSG, which guarantees permanent access to uranium supplies.
2. The benefit India derives from international uranium markets is primarily due to a waiver granted by the NSG, not membership.
3. Anil Kakodkar argued that obtaining NSG membership would de-risk the availability of uranium for India's nuclear programme.
Which of the statements given above is/are correct?
Answer: (a)
Statement 1 is incorrect: The text explicitly states India benefits from a 'waiver' and that it is 'not a membership'.
Statement 2 is correct: The text notes, 'We get a lot of uranium now from the international market, thanks to the NSG waiver.'
Statement 3 is correct: Kakodkar stated that membership 'is what will de-risk the availability of uranium,' whereas the current waiver can be turned around easily.
b Statement 1 is incorrect; India does not have full membership.
c Statement 1 is factually incorrect as per the source; India holds a waiver, not membership.
According to the WWF Living Planet Report 2026, which of the following ecosystems recorded the strongest decline in the average size of monitored vertebrate populations between 1970 and 2022?
Answer: (b)
The report states that the strongest declines, 85%, were seen in freshwater ecosystems.
Terrestrial ecosystems declined by 69% and marine ecosystems by 59%.
Therefore, freshwater ecosystems had the highest rate of decline.
a The decline rates varied significantly across ecosystems (85%, 69%, and 59%).
c Marine ecosystems recorded a 59% decline, which is lower than freshwater.
d Terrestrial ecosystems recorded a 69% decline, which is lower than freshwater.
How many of the following statements regarding the 2019 intervention by the National Pharmaceutical Pricing Authority (NPPA) on non-scheduled anti-cancer drugs are correct?
1. The NPPA invoked its extraordinary powers under Paragraph 19 of the Drug Price Control Order, 2013.
2. The intervention covered 42 selected non-scheduled anti-cancer drugs.
3. The exercise resulted in price reductions of up to 91% and annual savings of ₹984 crore.
Answer: (c)
Statement 1 is correct: The text states the NPPA invoked extraordinary powers under Paragraph 19 of the Drug Price Control Order, 2013.
Statement 2 is correct: The 2019 intervention covered 42 selected non-scheduled anti-cancer drugs.
Statement 3 is correct: The text reports price reductions of up to 91% and annual savings of ₹984 crore across 526 brands.
a All three statements are factually correct based on the source text.
b All three statements are factually correct based on the source text.
d All three statements are factually correct based on the source text.
Consider the following statements regarding the sources of biological resources contributing to ABS receipts in India:
1. The Agri-seed sector has emerged as the largest contributor to ABS receipts.
2. Contributions to the ABS fund are derived solely from domestic entities.
3. Livestock genetic resources such as Mithun and Jersey cattle are included among the biological resources whose utilization generates ABS payments.
How many of the above statements are correct?
Answer: (b)
Statement 1 is correct: The text explicitly states, 'The Agri-seed sector accounted for the largest share of receipts, with Rs 7.16 crore'.
Statement 2 is incorrect: The text mentions contributions from 'both domestic and international entities, including entities from Sri Lanka, Germany, France, the Republic of Korea and Bhutan'.
Statement 3 is correct: The text lists 'livestock genetic resources such as Mithun (Bos frontalis), Jersey cattle (Bos taurus)...' as part of the diverse range of biological resources reflected in the receipts.
a Two statements (1 and 3) are correct, not just one.
c Statement 2 is incorrect because international entities also contribute.
d Statements 1 and 3 are factually supported by the text.
With reference to the 'JOSH (Joint Squad for Health) Teams' launched under the TB Mukt Bharat Abhiyaan, consider the following statements:
1. It is an initiative aimed at harnessing youth-led community participation for TB prevention, diagnosis, and stigma reduction.
2. The initiative involves collaboration between the Ministry of Health and Family Welfare, the Ministry of Youth Affairs & Sports, and the Ministry of Defence.
3. The primary objective of JOSH Teams is to replace government healthcare workers in rural areas with volunteer squads for direct treatment administration.
Which of the statements given above is/are correct?
Answer: (c)
Statement 1 is correct: The release explicitly states JOSH seeks to harness the energy and commitment of young people for TB prevention, early diagnosis, timely treatment, and stigma reduction.
Statement 2 is correct: The text mentions appreciation for collaboration with the Ministry of Youth Affairs & Sports and the Ministry of Defence.
Statement 3 is incorrect: The initiative aims to strengthen community participation and outreach (Jan Bhagidari), not to replace government healthcare workers or administer treatment directly.
a Statement 3 is incorrect; Statement 2 is correct.
b Statement 3 is incorrect.
d Statement 3 is incorrect as JOSH does not replace government workers.
With reference to the registration reforms recommended by the GST Council in its 57th meeting, consider the following statements:
1. Automatic registration without officer intervention is granted under Rule 14A of the CGST Rules if the applicant intends to pass on Input Tax Credit (ITC) exceeding ₹2.5 lakh per month.
2. Amendments to all registration particulars, including the Principal Place of Business (PPoB), are automatically accepted for taxpayers registered under the automatic route (Rule 14A).
3. The simplified registration mechanism for small sellers on Electronic Commerce Operators (ECO) platforms allows them to declare an ECO's warehouse as their PPoB even if they have no physical presence in that State/UT.
Which of the statements given above is/are correct?
Answer: (c)
Statement 1 is incorrect: Automatic registration under Rule 14A applies when the applicant does not intend to pass on ITC more than ₹2.5 lakh per month.
Statement 2 is correct: For taxpayers registered under Rule 14A (automatic route), amendments to all particulars, including PPoB, are accepted automatically.
Statement 3 is correct: Rule 14B allows small suppliers on ECOs with no physical presence to use the ECO's warehouse as their PPoB.
a Statement 1 is incorrect.
b Statement 1 is factually inverted regarding the ITC threshold condition.
d Statement 1 is incorrect due to the wrong ITC threshold direction.
With reference to the reforms announced by the GST Council in its 57th meeting, consider the following statements:
1. The Council has recommended increasing the prosecution threshold under GST from ₹1 crore to ₹5 crore and reducing the general penalty from ₹25,000 to ₹10,000.
2. Goods moving between States can now be inspected or detained by any GST enforcement officer along the transit route, provided they have specific intelligence.
3. An optional scheme allowing businesses with a turnover of up to ₹5 crore to file annual returns instead of quarterly ones has received final approval and is effective immediately.
Which of the statements given above is/are correct?
Answer: (a)
Statement 1 is correct: The release explicitly states that the Council recommended removing arrest powers, increasing the prosecution threshold to ₹5 crore, and reducing the general penalty to ₹10,000.
Statement 2 is incorrect: The reform restricts inspection/detention to officers of the supplier's or destination State only, prohibiting arbitrary checks by intermediate officers.
Statement 3 is incorrect: The optional annual return scheme for small taxpayers has only received 'in-principle approval'; the final decision is pending the next Council meeting.
b Statement 2 is factually opposite to the new rule which limits interception authority to origin/destination states.
c Statements 2 and 3 are incorrect as explained above.
d Both Statement 2 (wrong authority) and Statement 3 (wrong status of approval) are incorrect.
With reference to the decriminalisation reforms proposed by the GST Council, consider the following statements:
1. The proposal seeks to remove arrest powers in the pre-prosecution stage, resolving disputes primarily through civil consequences such as recovery of tax, interest, and penalty.
2. The threshold for prosecution under the GST Act is proposed to be increased from Rs 1 crore to Rs 5 crore.
3. All states and Union Territories unanimously supported the sweeping curtailment of taxmen’s arrest powers to ensure ease of doing business.
Which of the statements given above is/are correct?
Answer: (d)
Statement 1 is correct: The text explicitly states that arrest powers in the pre-prosecution stage are to be removed, with disputes resolved via civil consequences (recovery, interest, penalty).
Statement 2 is correct: The text mentions the threshold for prosecution is likely to be increased from Rs 1 crore to Rs 5 crore.
Statement 3 is incorrect: The text notes that at least five major states (Maharashtra, Gujarat, UP, Karnataka, AP) expressed concern over any sweeping curtailment of powers, arguing the regime should not be rendered 'toothless'.
a Statement 3 is incorrect; Statement 2 is correct.
b Statement 3 is incorrect due to state opposition.
With reference to the proposed consultation paper on Artificial Intelligence (AI) regulations in India, consider the following statements:
1. The consultation paper is intended to focus primarily on AI safety, deepfakes, and a human-first approach.
2. The government has stated that AI and other technologies can be effectively regulated solely through legislative frameworks without the need for technological solutions.
3. The industry is expected to shoulder the primary responsibility for issues such as cybersecurity, user harm, and psychological disorders.
Which of the statements given above is/are correct?
Answer: (d)
Statement 1 is correct: The text explicitly states the consultation paper will focus on AI safety, deepfakes, and a human-first approach.
Statement 2 is incorrect: The Minister stated that AI cannot be regulated by law alone and that a "techno-legal solution" is required.
Statement 3 is correct: The text notes that the industry must take the primary responsibility for cybersecurity, safety, user harm, etc.
a Statement 2 is incorrect because the government advocates for a techno-legal solution, not just law.
b Statement 2 is incorrect because the government advocates for a techno-legal solution, not just law.
c Statement 2 is incorrect because the government advocates for a techno-legal solution, not just law.
With reference to the Information Technology (Intermediary Liability and Digital Media Ethics Code) Rules, 2021, consider the following statements:
1. The Rules mandate social media platforms to provide users with an option for labelling AI-generated imagery.
2. Section 79(3)(b) of the IT Act legally binds intermediaries to remove content upon receiving a notice from authorized government agencies.
Which of the statements given above is/are correct?
Answer: (c)
Statement 1 is correct: The text explicitly states that the IT Rules, 2021 require social media platforms to provide users with an option of labelling AI-generated imagery.
Statement 2 is incorrect: The text clarifies that while Section 79(3)(b) allows authorized agencies to inform platforms about illegal content, it 'does not bind them to removing posts.' Platforms like Meta choose to remove content due to reduced compliance timelines, but the legal obligation under this specific section is not absolute.
a Statement 2 is incorrect, so 'Both' cannot be the answer.
b Statement 2 is factually incorrect as Section 79(3)(b) does not create a binding legal obligation to remove posts.
d Statement 1 is correct, so 'Neither' cannot be the answer.
With reference to the price regulation of non-scheduled anti-cancer drugs in India, consider the following statements:
1. The National Pharmaceutical Pricing Authority (NPPA) is responsible for finalizing the list of medicines to be covered under the new margin cap.
2. The new decision extends price protection to non-scheduled cancer medicines by limiting trade margins to 30% of the Maximum Retail Price (MRP).
3. Essential cancer medicines included in the scheduled list are already subject to strict government-set ceiling prices, whereas non-scheduled drugs previously lacked such specific margin caps.
Which of the statements given above is/are correct?
Answer: (a)
Statement 1 is incorrect: The expert committee under the Directorate General of Health Services (DGHS) will finalize the list of medicines, while NPPA takes the decision and issues the notification.
Statement 2 is correct: The release explicitly states that margins on non-scheduled anti-cancer drugs are capped at 30% of MRP.
Statement 3 is correct: Scheduled essential medicines have ceiling prices; this new move specifically targets non-scheduled drugs which were outside that list.
b Statement 1 is incorrect as DGHS finalizes the list, not NPPA.
c Statement 1 is incorrect regarding the role of NPPA vs DGHS.
With reference to the World Development Report (WDR) 2026 on Artificial Intelligence, consider the following statements:
1. The report sets out a framework for countries to harness AI for development through adoption, adaptation, and advancement.
2. It emphasizes that gains from AI in developing economies rest solely on digital infrastructure such as reliable electricity and connectivity.
3. The launch event was organized by the Ministry of Electronics and Information Technology (MeitY) in collaboration with the World Bank Group.
Which of the statements given above is/are correct?
Answer: (a)
Statement 1 is correct: The release explicitly states the report 'sets out a framework for countries to harness AI for development through adoption, adaptation and advancement.'
Statement 2 is incorrect: The release notes that gains rest on strong foundations including not just infrastructure (electricity, connectivity, computing), but also 'quality data, skills, education systems and capable institutions,' not solely digital infrastructure.
Statement 3 is correct: The text confirms the launch was organised by the IndiaAI Mission, MeitY, Government of India, in collaboration with the World Bank Group.
b Statement 2 is incorrect because it limits the foundations to digital infrastructure, ignoring human and institutional factors mentioned in the text.
c Statement 2 is incorrect.
d Statement 2 is incorrect for the same reason; limiting foundations to digital infrastructure is false.
With reference to the G20 Trade Ministers Meeting held in Milwaukee, consider the following statements regarding the joint statement on structural excess capacity:
1. The joint statement identified sectors such as automobiles, electric vehicles, batteries, chemicals, foundational semiconductors, and solar panels as areas of concern.
2. The participating trade ministers committed to meeting at the technical level before December 2026 to develop terms of reference and share non-confidential data, drawing upon the work of the OECD.
3. The statement explicitly mandated that all participating countries must immediately eliminate all non-market policies and practices in their economies to address overcapacity.
Which of the statements given above is/are correct?
Answer: (d)
Statement 1 is correct as the text lists these specific sectors as being of concern.
Statement 2 is correct; the joint statement commits to technical meetings before December 2026 to develop terms of reference and share data, utilizing OECD work.
Statement 3 is incorrect because the statement 'sought countries to take steps' to eliminate structural excess capacity, rather than explicitly mandating the immediate elimination of all non-market policies as a binding condition in the joint declaration itself.
a Statement 3 is incorrect as the text describes a commitment to 'explore' and 'take steps' rather than an explicit mandate to immediately eliminate all non-market policies.
b Statement 3 is incorrect as the text describes a commitment to 'explore' and 'take steps' rather than an explicit mandate to immediately eliminate all non-market policies.
c Statement 3 is incorrect as the text describes a commitment to 'explore' and 'take steps' rather than an explicit mandate to immediately eliminate all non-market policies.
Which of the following statements regarding the impact of the recent El Niño event on India's climate is/are correct?
1. The 2026 southwest monsoon season ended with a 13 per cent rainfall deficit, making it the fourth driest since 2001.
2. El Niño typically enhances rainfall over India during the second half of the monsoon season.
3. Maharashtra has imposed a 10 per cent water cut in many of its districts due to drought conditions linked to El Niño.
Answer: (d)
Statement 1 is correct; the text confirms a 13% deficit and the fourth-driest status since 2001.
Statement 2 is incorrect; El Niño is known to suppress, not enhance, rainfall over India.
Statement 3 is correct; Maharashtra has indeed implemented a 10% water cut in affected districts.
a Statement 2 is incorrect as El Niño suppresses rather than enhances Indian rainfall.
b Statement 2 is incorrect as El Niño suppresses rather than enhances Indian rainfall.
c Statement 2 is incorrect as El Niño suppresses rather than enhances Indian rainfall.
With reference to the Namami Gange Programme and its implementation status as reviewed by the Empowered Task Force, consider the following statements:
1. As of August 2026, the programme has sanctioned 527 projects at a total cost of ₹43,266 crore, with 368 projects completed.
2. The programme’s interventions are limited to sewage infrastructure and solid waste management, excluding research and development or biodiversity conservation.
3. The Master Plan for the Rejuvenation and Integrated Development of Gomti Udgam Sthal in Pilibhit was approved by the Executive Committee of NMCG in December 2025.
Which of the statements given above is/are correct?
Answer: (c)
Statement 1 is correct: The release states that as of August 2026, 527 projects were sanctioned at ₹43,266 crore, with 368 completed.
Statement 2 is incorrect: The release explicitly lists bioremediation, research and development, biodiversity and afforestation, and public outreach as part of the programme's interventions, not just sewage and solid waste.
Statement 3 is correct: The release confirms the Master Plan for Gomti Udgam Sthal was approved in the 68th Executive Committee meeting in December 2025.
a Statement 2 is incorrect because the programme includes R&D and biodiversity, not just sewage and waste.
b Statement 2 is incorrect because the programme includes R&D and biodiversity, not just sewage and waste.
d Statement 2 is incorrect because the programme includes R&D and biodiversity, not just sewage and waste.
Consider the following statements regarding the 'Trust-Based Administration' mentioned in the context of recent GST reforms:
Statement I: The GST Council's new recommendations emphasize simplification of procedures and decriminalisation to foster a trust-based administrative approach.
Statement II: Trust-based administration in this context implies that taxpayers are exempted from all forms of audit and verification processes.
Which one of the following is correct in respect of the above statements?
Answer: (c)
Statement I is correct: The release links 'trust-based administration' with 'removal of arrest provisions', 'greater decriminalisation', and 'simpler procedures'.
Statement II is incorrect: 'Trust-based administration' refers to reducing punitive measures (like arrests) and streamlining processes (automated refunds), not eliminating statutory audits or verifications entirely. The text does not support the claim of exemption from all audits.
a Statement II is factually unsupported by the text.
In the context of the UNFCCC COP31 negotiations, which of the following best describes the role of 'Article 6' as emphasized by India at the Pre-COP31 meeting?
Answer: (c)
The text explicitly states that India emphasized the 'strategic use of Article 6 cooperative approaches to plug critical gaps in finance and other means of implementation and unlock market-driven resources for sustainable development.'
Article 9.1 is mentioned separately as the opportunity to address matching finance to country needs, not Article 6.
The 1.5°C goal is an aspirational target, not the subject of Article 6's specific mechanism described here.
'Political Landing Zones' are discussed in the plenary, not defined as an outcome of Article 6.
a Article 9.1 is linked to finance matching, and the 1.5°C goal is a general aspirational target, not the specific function of Article 6 in this context.
b Article 6 is described as unlocking market-driven resources and cooperative approaches, not primarily direct grants for adaptation.
d The text does not link Article 6 to the drafting of Political Landing Zones; it links it to finance and means of implementation.
In the context of the Reserve Bank of India's (RBI) monetary policy review and the outlook for FY2027, which of the following statements is/are correct?
1. ICRA’s baseline estimate projects CPI inflation at 5.0 per cent in FY2027, which is lower than the MPC’s forecast.
2. UBS expects headline inflation to remain above 5.5 per cent YoY for three consecutive quarters starting in Q3 FY27, which is significantly above the RBI's medium-term target of 4 per cent.
3. SBI Funds Management expects the repo rate to reach 6.0 per cent following a cumulative 75 bps of hikes through the cycle.
Answer: (c)
Statement 1 is correct: The text states ICRA’s baseline CPI inflation estimate for FY2027 is 5.0%, lower than the MPC’s forecast.
Statement 2 is correct: UBS Chief India Economist Tanvee Gupta Jain stated headline inflation will remain above 5.5% YoY for three consecutive quarters starting Q3 FY27, above the 4% target.
Statement 3 is correct: Namrata Mittal of SBI Funds Management expects cumulative 75 bps hikes, potentially taking the repo rate to 6.0%.
a Statement 1 is also correct, so this option is incomplete.
b Statement 3 is also correct, so this option is incomplete.
d Statement 2 is also correct, so this option is incomplete.
Consider the following statements regarding the impact of trade dynamics on India's current account and currency value:
1. India runs a structural trade deficit with China due to the import of goods that are not easily substitutable in the short run.
2. A rise in the price of the U.S. dollar (depreciation of INR) typically leads to an increase in the demand for dollars by Indian importers as imports become cheaper.
3. If a tariff reduces India's exports to the U.S., it shifts the supply curve of dollars to the left, potentially leading to further depreciation of the rupee.
Answer: (a)
Statement 1 is correct; the text identifies the India-China deficit as 'structural' because India buys goods from China that are not easily substitutable.
Statement 2 is incorrect; the text states that a rise in the dollar price makes imports more expensive for Indians, which generally causes the demand for dollars to fall, not rise.
Statement 3 is correct; the text explains that a fall in exports to the U.S. (due to tariffs) pushes the supply curve of dollars to the left, adding to depreciation pressure.
b Statement 2 is wrong because it misstates the economic effect of rupee depreciation on import costs and subsequent dollar demand.
c Statement 2 is wrong because a stronger dollar makes imports more expensive, reducing demand for dollars, not increasing it.
d Statement 2 is wrong because the relationship between dollar price and import demand is inverse, not positive, in the standard model described.
How many of the following statements regarding the structural issues impacting property tax outcomes in India are correct?
1. India's cumulative property tax as a percentage of GDP is significantly lower than that of both middle-income and low-income countries.
2. GIS-based mapping using satellite imagery and drones has been deployed to improve enumeration, but it requires physical inspections by municipal staff to be effective.
3. The 'circle rate' set by the State revenue department is the most common valuation method followed by municipal bodies for determining property tax.
Answer: (c)
Statement 1 is correct: India's property tax (0.15-0.2% of GDP) is lower than middle-income (0.6%) and low-income (0.3%) countries.
Statement 2 is correct: The text notes that GIS mapping needs to be accompanied by physical inspections due to the need for institutional memory and regular updates.
Statement 3 is incorrect: Most municipal bodies follow a 'base rate' method defined in rupees per sq ft per month, whereas the 'circle rate' is the recommendation for capital valuation, not the current common practice.
a Statement 3 is incorrect as it confuses the recommended capital valuation process with the actual prevalent base rate method used by municipalities.
b Statements 1 and 2 are clearly supported by the source text.
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