Granular Trade and Fiscal Calibrations: UPSC Current Affairs Analysis & Study Strategy

In-Depth Analysis

The Big Picture

The Indian regulatory landscape in 2025-26 is shifting from broad macroeconomic management to 'surgical interventions'. This is evident in the DGFT's specific commodity-level controls (Honey MEP, Silver import licenses), the Supreme Court's scrutiny of aviation pricing, and the government's pivot from temporary GST compensation to permanent health-linked 'sin taxes'. The state is refining its role as a micro-regulator to protect domestic industry and consumers from global volatility while maintaining a liberal FDI facade.

Cross-Theme Insight

Together, these threads reveal a 'Digital-Facilitation-with-Control' model. While FSSAI and CBIC integrate digitally to speed up trade (Ease of Doing Business), the DGFT simultaneously tightens non-tariff barriers like Halal certification streamlining and anti-dumping duties. This creates a dual-track economy where entry is easier for 'compliant' capital (FDI in Renewables) but much harder for 'opportunistic' imports (Chinese PVC, Bangladeshi Jute).

Textbook vs Reality Gap

Standard textbooks like 'Indian Economy' by Nitin Singhania (p. 95) describe the GST Compensation Cess as a 5-year temporary measure ending in 2022. However, 2025 reality shows a 'legislative repurposing' where the cessation of compensation for states has transitioned into a 'Health Security and National Security Cess' on tobacco and pan masala to prevent revenue shocks (News 13, 14). Similarly, while textbooks list Mauritius as a primary FDI source due to DTAA (IAS 2010 PYQ), current RBI Census data (2024-25) marks a structural shift with the USA and Singapore now accounting for over one-third of total FDI inflows (News 17).

How This Theme Is Evolving

Trade policy has evolved from 'broad liberalization' to 'strategic protectionism'. In 2025-26, we see a heavy reliance on Non-Tariff Measures (NTMs) like MEP, stockholding limits, and specific port restrictions (Nhava Sheva for Jute) rather than just basic customs duties.

UPSC Exam Intelligence

Previous Year Question Pattern

Recent exams focus on Foreign Trade Policy 2023 pillars and GST mechanisms. For instance, CAPF 2024 (NID: 17408) tested the pillars of FTP-2023, emphasizing 'Ease of Doing Business'. The shift from Mauritius-centric FDI to broader sources has been a recurring theme (IAS 2010, NID: 5211). Emerging focus on 'Sin Taxes' and 'Cesses' is likely to replace older questions on the basic GST 101st Amendment.

Probable Prelims Angles

• FDI limits in Renewable Energy (currently 100% under automatic route)
• Top two FDI source countries for India in 2024-25 (USA and Singapore)
• Institutional role of DGFT in notifying 'Anti-dumping duties' vs the role of Ministry of Finance in imposing them
• Essential Commodities Act: Stockholding limits on Jute and Sugarcane
• FSSAI's new ₹100 registration fee for seasonal food businesses

Mains Answer Framework

• India's recent trade and fiscal reforms reflect a transition from post-liberalization expansion to a state of 'calibrated protectionism' aimed at achieving Aatmanirbhar Bharat.
• Surgical Trade Tools: Use of Anti-dumping duties on 5 Chinese products and MEP on Honey as tools to protect domestic SMEs from unfair competition.. Fiscal Federalism 2.0: The transition of GST Compensation Cess into National Security cesses demonstrates the state's need to find permanent revenue streams for 'sin goods'.. Regulatory Oversight in Infrastructure: Judicial and governmental intervention in aviation pricing (MoCA airfare caps) highlights the balance between market freedom and consumer protection.
• The focus must shift from merely increasing trade volume to enhancing 'trade quality' through digital integration and safety standards like FSSAI-ICEGATE synchronization.

Essay Connections

• Economic Sovereignty in a Globalized World: Using jute/silver import restrictions as examples of strategic autonomy.

Preparation Strategy

Reading Approach

First, read the 'Foreign Trade' chapter in Singhania to understand the role of DGFT and Anti-Dumping. Then, map current items like the Silver import license and Halal certification to the concept of 'Non-Tariff Barriers'.

Textbook Roadmap

• Indian Economy, Nitin Singhania (2nd ed), Ch 17, p. 506. Threads 1 & 4 (DGFT and FTP pillars). SCOMET policy and Digitalization of Foreign Trade
• Indian Economy, Vivek Singh (7th ed), Ch 4, p. 177. Thread 6 (GST Cess transition). Compensation mechanism and back-to-back loans for states

Revision Bullets

• FDI Sources: USA and Singapore (Top 2 in FY25)
• Nifty Range (Oct-Nov 2025): 25,700 - 26,100 (Indicates resistance/volatility)
• Jute Stock Limit: 2,000 quintals for balers; 45 days consumption for mills
• FSSAI Seasonal License: ₹100 for 3 months
• IndiGo Disruptions: MoCA mandated refunds by Dec 7, 2025
• Silver Imports: Restricted till March 31, 2026
• New Cess: Health Security and National Security Cess (repurposed from GST compensation)

Sub-Themes and News Coverage (9 themes, 41 news items)

Routine Market Volatility & Technical Movements

Focus: Daily or weekly market reports describing ordinary fluctuations, technical levels, or ceremonial trading without major structural triggers.

UPSC Value: Illustrates the 'noise' of the market, including technical corrections, profit booking, and sentiment-driven intraday moves.

8 news items in this theme:

• 2025-12-31 [Economy] — Sensex and Nifty 50: Market indecision
  Indian stock market indices, Sensex and Nifty 50, were expected to open flat on December 31, 2025, amid muted cues from global peers. The Gift Nifty was trading near 26,127, up 24 points or 0.09% from the previous close. The Sensex settled at 84,675.08, down 20 points, or 0.02 percent, while the Nifty 50 edged lower by 3 points, or 0.01 percent, to end at 25,938.85 on December 30.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • Gift Nifty: 26,127 (up 24 points or 0.09%)
  • Sensex: 84,675.08 (down 20 points or 0.02%)
  • Nifty 50: 25,938.85 (down 3 points, or 0.01%)
  • India VIX: 9.67
• 2025-11-03 [Economy] — Vaishali Parekh Recommends Stocks
  Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, suggests that the Indian stock market is range-bound and recommends purchasing CSB Bank, MCX, and UCO Bank. The Nifty 50 index is confined to the 25,700-26,100 range, and a bullish or bearish trend can be assumed based on the breakage of either side of this range.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • Nifty 50 range-bound between 25,700 and 26,100.
  • Immediate support for Nifty 50 at 25,500.
  • Resistance level for Nifty 50 at 26,000.
  • Bank Nifty expected range: 57,000 to 58,500.
  • Vaishali Parekh is the Vice President of Technical Research at Prabhudas Lilladher.
  • Nifty 50 index confined to the 25,700-26,100 range.
  • Recommends purchasing CSB Bank, MCX, and UCO Bank.
• 2025-10-24 [Economy] — Markets Slip Amid Profit Booking; Metal Stocks Shine
  Indian markets closed lower weighed down by profit booking in select sectors. The Nifty 50 slipped 0.37% to 25,795.15, while the Sensex edged down 0.04% to 24,218.18. Hindalco Industries, ICICI Bank, and Bharti Airtel were among the top gainers, whereas Cipla, Hindustan Unilever, and Max Healthcare declined the most.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • Nifty 50 slipped 0.37% to 25,795.15
  • Sensex edged down 0.04% to 24,218.18
  • Hindalco Industries, ICICI Bank, and Bharti Airtel were among the top gainers
  • Cipla, Hindustan Unilever, and Max Healthcare declined the most
• 2025-10-21 [Economy] — Muhurat Trading 2025: Sensex and Nifty 50 Close with Gains
  On October 21, 2025, the Indian stock market benchmarks, Sensex and Nifty 50, experienced nominal gains during the one-hour Muhurat trading session. The Sensex closed at 84,426.34, up by 63 points (0.07%), and the Nifty 50 settled at 25,868.60, with a gain of 25 points (0.10%). The BSE Midcap index rose 0.23%, while the Smallcap index increased by 0.91%.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • October 21, 2025: Date of Muhurat trading
  • Sensex: Closed at 84,426.34, gaining 63 points (0.07%)
  • Nifty 50: Settled at 25,868.60, up 25 points (0.10%)
  • BSE Midcap index: Rose 0.23%
  • Smallcap index: Jumped 0.91%
• 2025-10-10 [Economy] — Indian Equities Open Firm
  On October 10, 2025, Indian equities opened with a firm note, supported by positive cues from derivatives markets and continued buying by domestic institutions. The Nifty 50 climbed into positive territory and hovered near 25,300, while the Sensex traded around 82,600.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • Gift Nifty traded above 25,430 in early deals.
  • Nifty 50 hovered near 25,300.
  • Sensex traded around 82,600.
  • FPIs were net buyers of roughly ₹1,308 crore on 9 October.
  • Domestic institutional investors (DIIs) added about ₹864 crore on 9 October.
• 2025-08-25 [Economy] — Sensex and Nifty close higher
  On August 25, 2025, Indian benchmark indices Sensex and Nifty closed higher, boosted by IT shares, after the Federal Reserve hinted at potential US rate cuts. The BSE Sensex rose by 329.06 points (0.40%) to 81,635.91, while the NSE Nifty gained 97.65 points (0.39%) to settle at 24,967.75.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • BSE Sensex
  • 81,635.91
  • +329.06 points
  • NSE Nifty
  • 24,967.75
  • +97.65 points
• 2025-07-22 [Economy] — Nifty 50 opens above 25,100
  On July 22, 2025, the Nifty 50 index opened above 25,100, and the BSE Sensex was up over 150 points. At 9:26 AM, Nifty50 was trading at 25,123.10, up 32 points or 0.13%, and the BSE Sensex was trading at 82,352.59, up 152 points or 0.19%.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • Nifty 50 opened above 25,100
  • BSE Sensex up over 150 points
  • Nifty50 at 25,123.10 (up 0.13%)
  • BSE Sensex at 82,352.59 (up 0.19%)
• 2025-06-16 [Economy] — Stock Market Updates
  On June 16, 2025, the Indian equity benchmark indices, Nifty50 and BSE Sensex, recovered approximately 1 per cent due to strategic buying in IT and oil sectors, global market gains and reduced Brent crude oil prices. The NSE Nifty increased by 227.90 points or 0.92 per cent to reach 24,946.50, and the BSE Sensex rose by 677.55 points or 0.84 per cent, closing at 81,796.15.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • NSE Nifty increased by 227.90 points or 0.92 per cent to reach 24,946.50.
  • BSE Sensex rose by 677.55 points or 0.84 per cent, closing at 81,796.15.

Technical Equity Analysis and Short-Term Trading Recommendations

Focus: Recurring stock picks from technical analysts that provide specific entry points, price targets, and stop-loss levels for retail investors across various market phases.

UPSC Value: Understanding the role of technical brokerage advice in shaping short-term retail trading patterns and market volatility in the Indian equity market.

6 news items in this theme:

• 2025-11-03 [Economy] — Sumeet Bagadia's Stock Recommendations
  Sumeet Bagadia, Executive Director at Choice Broking, has recommended Shriram Finance, Bharat Electronics (BEL), and Canara Bank as stocks to buy. The Nifty 50 index is trading range-bound between 25,700 and 26,100.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • Sumeet Bagadia is Executive Director at Choice Broking.
  • Recommends buying Shriram Finance, Bharat Electronics (BEL), and Canara Bank.
  • Nifty 50 index is trading range-bound between 25,700 and 26,100.
• 2025-10-10 [Economy] — Stock Market Recommendations
  Sumeet Bagadia from Choice Broking recommends buying Dr. Agarwal's Health Care, Precision Wires India, Blackbuck, Subros, and Hi-Tech Gears. Vaishali Parekh from Prabhudas Lilladher suggests buying Aurobindo Pharma, SAIL, and Astra Microwave Products.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • Dr. Agarwal's Health Care: Buy at ₹506, target ₹545, stop loss ₹490.
  • Precision Wires India: Buy at ₹213, target ₹230, stop loss ₹206.
  • Subros: Buy at ₹1164, target ₹1250, stop loss ₹1120.
  • Blackbuck: Buy at ₹679, target ₹730, stop loss ₹655.
  • Hi-Tech Gears: Buy at ₹814, target ₹875, stop loss ₹785.
  • Aurobindo Pharma: Buy at ₹1119.90, Target ₹1165, Stop Loss ₹1100.
  • SAIL: Buy at ₹136.45, Target ₹144, Stop Loss ₹133.
  • Astra Microwave Products: Buy at ₹1162, Target ₹1220, Stop Loss ₹1140.
• 2025-08-04 [Economy] — Stock Recommendations for August 4, 2025
  Sumeet Bagadia from Choice Broking recommends buying ITC, Asian Paints, and Metropolis Healthcare. The Nifty 50 index is trading in the 24,500 to 24,950 range.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • ITC: Buy at ₹416.45, Target ₹450, Stop Loss ₹400.
  • Asian Paints, and Metropolis Healthcare are also recommended.
• 2025-06-10 [Economy] — Experts Recommend Stocks to Buy Under ₹100
  Analysts recommend buying six stocks under ₹100 for intraday trade, including Reliance Power, NMDC, MIC Electronics, Imagicaaworld Entertainment, Asian Granito, and HCC.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • Reliance Power
  • ₹64.62
  • ₹71.62
  • ₹62.35
  • NMDC
  • ₹74
  • ₹79.18
  • ₹71.41
  • MIC Electronics
  • ₹66
  • ₹82-90
  • ₹55
  • Imagicaaworld Entertainment
  • ₹73.50
  • ₹80
  • ₹70
  • HCC
  • ₹35.15-36.15
  • ₹38
  • ₹41
  • ₹44
  • ₹47
  • ₹33.80
• 2025-04-17 [Economy] — Stock Recommendations: Bank of Maharashtra, Hindustan Zinc, and Syngene International
  Vaishali Parekh recommended buying Bank of Maharashtra at ₹47.40 with a target of ₹52 and a stop loss at ₹45; Hindustan Zinc at ₹439 with a target of ₹465 and a stop loss at ₹425; and Syngene International at ₹735 with a target of ₹760 and a stop loss at ₹720.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • Bank of Maharashtra: Buy at ₹47.40, Target ₹52, Stop Loss ₹45
  • Hindustan Zinc: Buy at ₹439, Target ₹465, Stop Loss ₹425
  • Syngene International: Buy at ₹735, Target ₹760, Stop Loss ₹720
• 2025-04-15 [Economy] — Stock Recommendations
  Vaishali Parekh of Prabhudas Lilladher recommends buying Jio Financial Services at ₹230 with a target of ₹260 and a stop loss at ₹222, Coal India at ₹392 with a target of ₹415 and a stop loss at ₹382, and Texmaco Rail at ₹134 with a target of ₹145 and a stop loss at ₹128. Sumeet Bagadia recommends buying Suzlon Energy at ₹53, target ₹58, stop loss ₹50.50. Mehul Kothari suggests buying NTPC Green Energy at ₹94 to ₹95, target ₹106, stop loss ₹88. Mahesh M Ojha recommends buying Reliance Power at ₹40, targets ₹44, ₹48, and ₹52, stop loss ₹36; and Canara Bank at ₹90 to ₹90.50, targets ₹94, ₹96, and ₹100, stop loss ₹87.80. Sugandha Sachdeva's stock to buy under ₹100 is NMDC: Buy at ₹61.80, target ₹65.80, stop loss ₹59.50.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • Jio Financial Services: Buy at ₹230, target ₹260, stop loss ₹222
  • Coal India: Buy at ₹392, target ₹415, stop loss ₹382
  • Texmaco Rail: Buy at ₹134, target ₹145, stop loss ₹128
  • Suzlon Energy: Buy at ₹53, target ₹58, stop loss ₹50.50
  • NTPC Green Energy: Buy at ₹94 to ₹95, target ₹106, stop loss ₹88
  • Reliance Power: Buy at ₹40, targets ₹44, ₹48, and ₹52, stop loss ₹36
  • Canara Bank: Buy at ₹90 to ₹90.50, targets ₹94, ₹96, and ₹100, stop loss ₹87.80
  • NMDC: Buy at ₹61.80, target ₹65.80, stop loss ₹59.50

DGFT Import/Export Policy Amendments

Focus: Official notifications by the Directorate General of Foreign Trade (DGFT) modifying specific import/export policies and standards for various commodities.

UPSC Value: Demonstrates the granular use of trade policy tools (restrictions, MEP, standards) to regulate specific sectors like food, textiles, and raw materials.

5 news items in this theme:

• 2026-02-09 [Economy] — DGFT Notification on Halal Certification
  The Directorate General of Foreign Trade (DGFT) issued a notification regarding the streamlining of the Halal Certification Process for Meat and Meat Products.
  More details

  UPSC Angle: DGFT notification on streamlining Halal Certification Process.

  Key Facts:

  • DGFT Notification
  • Streamlining of Halal Certification Process for Meat and Meat Products
• 2025-12-31 [Economy] — Amendment for extension of validity of Minimum Export Price (MEP) on export of Natural Honey
  The DGFT has issued a notification regarding the amendment for the extension of validity of Minimum Export Price (MEP) on export of Natural Honey.
  More details

  UPSC Angle: DGFT extended validity of Minimum Export Price (MEP) on Natural Honey.

  Key Facts:

  • Amendment for extension of validity of Minimum Export Price (MEP) on export of Natural Honey.
• 2025-12-31 [Economy] — Amendment in Import policy & policy condition of Low Ash Metallurgical Coke
  The DGFT has issued a notification regarding the amendment in Import policy & policy condition of Low Ash Metallurgical Coke under Chapter 27 of ITC (HS), 2022, Schedule-I (Import Policy).
  More details

  UPSC Angle: DGFT amended import policy for Low Ash Metallurgical Coke.

  Key Facts:

  • Amendment in Import policy & policy condition of Low Ash Metallurgical Coke under Chapter 27 of ITC (HS), 2022, Schedule-I (Import Policy).
• 2025-05-23 [Economy] — DGFT Notification
  DGFT issued Notification 57/2025-26 regarding amendment in Import Policy and policy condition of Umbrellas covered under Chapter 66 of Schedule-I (Import Policy) of ITC (HS) 2022.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • DGFT
  • Notification 57/2025-26
  • Amendment in Import Policy
  • Umbrellas
  • Chapter 66
  • Schedule-I (Import Policy)
  • ITC (HS) 2022
• 2025-05-17 [International Relations] — India restricts port entry for Bangladeshi goods
  The Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, has issued a notification imposing port restrictions on the import of certain goods such as Readymade garments and processed food items from Bangladesh to India. However, such said port restriction will not apply to Bangladesh goods transiting through India but destined for Nepal and Bhutan.
  More details

  UPSC Angle: India restricts port entry for Bangladeshi goods.

  Key Facts:

  • Directorate General of Foreign Trade (DGFT)
  • Ministry of Commerce and Industry
  • Restrictions on import of Readymade garments, processed food items etc., from Bangladesh to India
  • Restriction will not apply to Bangladesh goods transiting through India but destined for Nepal and Bhutan

Regulation of Aviation Pricing and Passenger Redressal

Focus: Government and judicial actions aimed at curbing predatory airfare pricing and ensuring passenger compensation during operational disruptions.

UPSC Value: Relevant for GS Paper 3 (Infrastructure and Regulatory Bodies) regarding the oversight of the aviation sector and the protection of consumer rights against market volatility.

4 news items in this theme:

• 2026-01-20 [Polity & Governance] — Supreme Court flags airfare surges during festivals
  The Supreme Court on January 19, 2026, expressed concerns over the "exploitative" and erratic pricing of airfares, particularly during festivals and peak travel periods, while hearing a PIL seeking regulatory guidelines to control these fluctuations. Justices Vikram Nath and Sandeep Mehta composed the bench.
  More details

  UPSC Angle: SC flags airfare surges during festivals.

  Key Facts:

  • Date: January 19, 2026
  • Justices Vikram Nath and Sandeep Mehta: Bench members hearing the PIL
• 2025-12-11 [Economy] — IndiGo Offers Travel Vouchers to Impacted Customers
  IndiGo is providing travel vouchers worth Rs 10,000 to customers severely affected by recent operational disruptions. These vouchers are valid for future IndiGo travel within the next 12 months.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • IndiGo
  • Travel vouchers
  • Rs 10,000
  • Valid for 12 months
• 2025-12-06 [Economy] — Centre Imposes Caps on Air Fares and Orders Refunds
  The central government has imposed caps on 'unusually high fares' and has mandated the completion of passenger refunds by December 7.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • December 7: Deadline for completing passenger refunds
• 2025-12-06 [Economy] — Airfare Caps Imposed Due to Flight Disruptions
  Due to ongoing flight disruptions with IndiGo, the Ministry of Civil Aviation (MoCA) announced capping of airfares to control the surge in ticket prices. MoCA directed IndiGo to clear all pending passenger refunds, mandating the refund process be completed by December 7, 2025.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • Ministry of Civil Aviation (MoCA) imposed caps on airfares due to 'unusually high fares'.
  • MoCA ordered IndiGo to complete all passenger refunds by December 7, 2025.

FSSAI Ease of Doing Business and Digital Integration

Focus: FSSAI measures to simplify compliance and enhance trade facilitation through digital and procedural reforms.

UPSC Value: Analysis of institutional efforts to improve the business environment in the food sector while maintaining safety standards.

4 news items in this theme:

• 2025-11-02 [Schemes & Programs] — FSSAI at India International Trade Fair (IITF) 2025
  FSSAI participated in the India International Trade Fair (IITF) 2025 under the MoHFW pavilion, showcasing a range of IEC materials designed to raise awareness about obesity, adulteration, healthy eating and lifestyle choices. FSSAI and Central Board of Indirect Taxes and Customs (CBIC) went live with Single Window Interface for Facilitating Trade (SWIFT) 2.0 Pilot to Enhance Transparency and Efficiency in Food Imports.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • FSSAI participated in the India International Trade Fair (IITF) 2025 under the MoHFW pavilion
  • Showcased IEC materials to raise awareness about obesity, adulteration, healthy eating and lifestyle choices
  • FSSAI and Central Board of Indirect Taxes and Customs (CBIC) went live with Single Window Interface for Facilitating Trade (SWIFT) 2.0 Pilot to Enhance Transparency and Efficiency in Food Imports
• 2025-10-28 [Schemes & Programs] — FSSAI simplifies licensing for seasonal food businesses
  The Food Safety and Standards Authority of India (FSSAI) has introduced a simplified registration framework to support seasonal and short-term food business operators. Seasonal operators can now obtain an FSSAI license for just ₹100, valid for a maximum period of three months, through a single-form application process using Form A. This initiative aims to help small and temporary food vendors, ensuring that food sold during temporary events adheres to safety standards without burdening small entrepreneurs with procedural complexities.
  More details

  UPSC Angle: FSSAI simplifies licensing for seasonal food businesses.

  Key Facts:

  • FSSAI
  • FSSAI license for ₹100
  • Valid for three months
  • Single-form application process
  • Form A
  • Non-renewable
  • October 28, 2025
• 2025-08-01 [Economy] — India, BoB & FSSAI launch web-based payment solution
  Bank of Baroda (BoB) and Food Safety and Standards Authority of India (FSSAI) collaborated to launch a customized web-based payment solution on August 1, 2025. This will likely facilitate transactions within the food safety ecosystem.
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  UPSC Angle: Bank of Baroda & FSSAI launch web-based payment solution.

  Key Facts:

  • Bank of Baroda
  • BoB
  • Food Safety and Standards Authority of India
  • FSSAI
  • August 1, 2025
• 2025-06-13 [Economy] — FSSAI Extends Validity for Alcoholic Beverage NOC
  FSSAI has extended the validity of the NOC for imported alcoholic beverages bottled in origin & in bulk containing more than 10 percent alcohol, which does not have an expiry date, to 365 days. This revision aims to facilitate ease of doing business while ensuring food safety.
  More details

  UPSC Angle: FSSAI extends validity for alcoholic beverage NOC to 365 days.

  Key Facts:

  • FSSAI
  • NOC validity extended to 365 days
  • Alcoholic beverages bottled in origin & in bulk
  • More than 10 percent alcohol
  • No expiry date
  • FSS (Import) Regulations, 2017
  • Visual inspection for re-validation beyond 365 days

Foreign Investment Ecosystem Reforms

Focus: Policy measures, statistical reports, and bilateral agreements aimed at regulating and boosting Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) inflows.

UPSC Value: Highlights the macroeconomic trends and policy shifts governing foreign capital in India's growth story.

4 news items in this theme:

• 2025-11-01 [Economy] — RBI Data on FDI Sources in FY25
  The Reserve Bank of India (RBI) released the provisional results of the 2024–25 Annual Census on Foreign Liabilities and Assets (FLA), revealing that the United States (USA) and Singapore together accounted for over one-third of India's Foreign Direct Investment (FDI) during 2024–25. The FLA Census covered cross-border liabilities and assets of Indian entities with inward/outward direct investment (DI).
  More details

  UPSC Angle: RBI data: USA and Singapore largest FDI sources in FY25.

  Key Facts:

  • Top FDI sources: USA (20%), Singapore (14.3%), Mauritius (13.3%), United Kingdom (7.2%), Netherlands (7%), Japan (6%).
• 2025-10-04 [Economy] — FDI in Renewable Energy
  The Indian government has authorized 100% annual Foreign Direct Investment (FDI) for renewable power generation and distribution projects. This is to meet the INR 1.5-2 trillion annual investment requirement in renewable energy.
  More details

  UPSC Angle: 100% annual FDI authorized for renewable power generation projects.

  Key Facts:

  • 100% annual Foreign Direct Investment (FDI) authorized for renewable power generation and distribution projects
• 2025-09-09 [International Relations] — India-Israel Bilateral Investment Agreement
  India and Israel signed a Bilateral Investment Agreement (BIA) in New Delhi to boost investments and ensure investor protection. Israel is the first OECD member state to sign an investment pact under India's new model treaty framework. The agreement will increase bilateral investments, which presently stands at a total of USD 800 million.
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  UPSC Angle: India and Israel sign Bilateral Investment Agreement (BIA).

  Key Facts:

  • Bilateral Investment Agreement (BIA) signed between India and Israel
  • Israel is the first OECD member to sign under India's new treaty framework
  • Current bilateral investments total USD 800 million
  • Finance Ministers Nirmala Sitharaman and Bezalel Smotrich signed the pact
  • The BIA replaces an earlier investment treaty signed in 1996 and terminated in 2017
  • The agreement safeguards against expropriation, promotes transparency, and eases investment transfers
• 2025-05-28 [Economy] — RBI Increases FPI Investment Limit
  RBI has increased the investment limit for Foreign Portfolio Investors (FPIs) in corporate bonds to ₹8.22 lakh crore for April–September 2025 and ₹8.80 lakh crore for October 2025–March 2026.
  More details

  UPSC Angle: RBI increases FPI investment limit in corporate bonds.

  Key Facts:

  • FPI investment limit: ₹8.22 lakh crore for April–September 2025.
  • FPI investment limit: ₹8.80 lakh crore for October 2025–March 2026.

Agricultural Market Interventions and Price Stabilization

Focus: Governmental policy interventions, such as stockholding limits and trade restrictions, aimed at stabilizing prices and managing supply-demand imbalances in key agricultural commodities.

UPSC Value: Understanding the regulatory framework and economic tools used by the state to intervene in agricultural markets to balance the interests of producers and consumers.

4 news items in this theme:

• 2025-09-27 [Economy] — Raw Jute Stockholding Limits Imposed
  The Government of India has imposed stockholding limits on raw jute due to a steep surge in prices, which have exceeded ₹9,000/quintal. The maximum stock limit for balers with presses is 2,000 quintals, while mills are restricted to 45 days of consumption.
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  UPSC Angle: Govt imposes stockholding limits on raw jute due to price surge.

  Key Facts:

  • Stock limits imposed on: Raw jute
  • Reason: Surge in prices
  • Price exceeding: ₹9,000/quintal
  • Stock limit for balers with presses: 2,000 quintals
  • Stock limit for mills: 45 days of consumption
• 2025-06-30 [International Relations] — India Imposes Curbs on Jute Imports from Bangladesh
  In June 2025, India restricted jute imports from Bangladesh via land routes, permitting entry only through Nhava Sheva seaport in Maharashtra. This decision addresses concerns about Bangladesh's growing strategic alignment with China and trade malpractices such as circumventing anti-dumping duties, which have negatively impacted India's domestic jute industry, particularly in West Bengal and Bihar. The restrictions apply to various jute products that previously had duty-free access under the South Asian Free Trade Area (SAFTA) Agreement.
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  UPSC Angle: India restricts jute imports from Bangladesh via land routes.

  Key Facts:

  • India imposed restrictions on jute imports from Bangladesh in June 2025.
  • Imports are now only allowed through Nhava Sheva seaport in Maharashtra.
  • The Directorate General of Foreign Trade (DGFT) announced the policy shift.
  • The move excludes Bangladeshi goods in transit to Nepal and Bhutan.
  • The decision is due to Dhaka's proximity to Beijing and trade malpractices by Bangladeshi exporters.
  • The restrictions apply to jute products, flax tow and waste, jute and other bast fibres, single yarn of jute or flax, multiple folded woven fabrics and unbleached woven jute fabrics.
  • Jute prices in India fell below Rs. 5,000 per quintal in FY 2024-25, lower than the MSP of Rs. 5,335.
  • Six jute mills remain shut with Rs. 1,400 crore in unpaid dues, including Rs. 400 crore in legacy liabilities.
  • Over 4 lakh workers are employed in the organised jute sector.
  • India imposed restrictions on jute imports from Bangladesh through land routes
  • Imports only allowed through Nhava Sheva seaport in Maharashtra
  • Excludes Bangladeshi goods in transit to Nepal and Bhutan
  • Move due to concerns about Dhaka's growing strategic proximity to Beijing and trade malpractices
  • In FY 2024-25, jute prices in India fell below Rs. 5,000 per quintal (MSP was Rs. 5,335)
  • Six jute mills remain shut with Rs. 1,400 crore in unpaid dues
  • Over 4 lakh workers employed in the organised jute sector
  • Jute imports from Bangladesh rose from USD 117 million in FY 2021-22 to USD 144 million in FY 2023-24
• 2025-05-27 [Economy] — Central Govt Withdraws Wheat Stock Limit Order
  The Central Government has decided to withdraw the wheat stock limit order dated May 27, 2025, to ensure adequate availability of wheat before the upcoming festive season, as wheat stock availability with private entities is significantly higher compared to last year. The Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2025, which is applicable for all States and Union Territories, was issued on May 27, 2025.
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  UPSC Angle: Central Govt withdraws wheat stock limit order.

  Key Facts:

  • The Central Government has decided to withdraw the wheat stock limit order dated 27 May 2025.
  • The Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2025 was issued on 27 May 2025.
  • The order is applicable for all States and Union Territories.
  • All wheat stocking entities are required to declare the stock position on every Friday on the food stock portal (https://foodstock.dfpd.gov.in).
• 2025-05-05 [Economy] — Demand and Supply Imbalance of Maize
  The demand supply balance of maize has been upset. Earlier average prices of maize were around 14,000 to 15,000 rupees per ton this has increased to 24 to 25,000 rupees per ton that is an increase of 66%.
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  UPSC Angle: Not exam-relevant

  Key Facts:

  • India allows up till 5 million metric tonses of maze imports annually at a customs duty of 15%.
  • India does not permit imports of genetically modified maze.
  • India imported last year between April and January 0.51 million metric tons for from Myanmar Ukraine.
  • All India is generating about 5 million metric tons of GDDS.
  • Earlier average prices of maze were around 14,000 to 15,000 rupees per ton this has increased to 24 to 25,000 rupees per ton

GST Compensation Cess Transition

Focus: Legislative and administrative actions taken to phase out the original GST Compensation Cess and transition toward targeted levies on sin goods.

UPSC Value: Understanding the evolution of Indian fiscal federalism and the shift from temporary compensation mechanisms to permanent health and security-linked levies.

3 news items in this theme:

• 2025-12-05 [Polity & Governance] — Legislative Agenda and Key Bills
  The government has put forward 14 Bills that carry significant political weight. The Jan Vishwas (Amendment) Bill, 2025 aims to streamline criminal justice procedures. Nirmala Sitharaman has introduced the Health Security se National Security Cess Bill, which repurposes an existing cess on tobacco products.
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  UPSC Angle: Jan Vishwas (Amendment) Bill, 2025 aims to streamline criminal justice.

  Key Facts:

  • 14 Bills put forward by the government
  • Jan Vishwas (Amendment) Bill, 2025: Aims to streamline criminal justice procedures
  • Health Security se National Security Cess Bill: Repurposes an existing cess on tobacco products
• 2025-12-02 [Economy] — Central government introduces bills to increase taxes on tobacco and pan masala
  The central government has introduced bills aimed at increasing the cess on pan masala and tobacco. This action is likely intended to offset an expected decrease in revenue following the conclusion of the GST compensation cess in March.
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  UPSC Angle: Central government introduces bills to increase taxes on tobacco and pan masala.

  Key Facts:

  • The bills aim to increase the cess on pan masala and tobacco products.
  • The increase is meant to compensate for the end of the GST compensation cess in March.
• 2025-09-13 [Economy] — GST Council Relieves Coal Sector
  The 56th GST Council made changes to the taxation structure of the coal sector, removing the compensation cess and raising GST to 18%. This is expected to reduce the overall tax burden on consumers and support Aatmanirbhar Bharat by reducing dependence on imported coal.
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  UPSC Angle: GST Council changes taxation structure of coal sector; impacts consumers.

  Key Facts:

  • 56th GST Council meeting
  • GST on coal raised to 18%
  • Compensation cess removed
  • Tax rate rationalised to 39.81%
  • Coal grades G6 to G17 tax reduction: ₹13.40 to ₹329.61 per ton
  • Power sector reduction: ₹260 per ton
  • Lowering the cost of power generation by nearly 17 to 18 paise per unit.

Targeted Commodity Import Controls

Focus: Discrete regulatory actions (Anti-dumping, Licensing, Duty withdrawal) managing the import flow of specific commodities.

UPSC Value: Demonstrates the variety of trade policy tools (Tariff vs. Non-Tariff) used to manage domestic supply and protect local industry.

3 news items in this theme:

• 2025-09-25 [Economy] — India Restricts Silver Imports Till March 31, 2026
  The Indian government has restricted silver and unstudded jewellery imports until March 31, 2026, requiring a government license for imports of these products. This decision follows a surge in imports, particularly from Thailand, raising concerns about duty evasion under the Asean-India Trade Agreement.
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  UPSC Angle: India restricts silver imports until March 31, 2026.

  Key Facts:

  • Silver and unstudded jewellery imports are restricted until March 31, 2026.
  • Imports now require a government license.
  • The restriction addresses concerns of duty evasion under the Asean-India Trade Agreement.
  • Exports of non-basmati rice are now subject to mandatory contract registration with APEDA.
• 2025-08-27 [Economy] — Government Withdraws Import Duty on Cotton
  The central government has withdrawn the 11% import duty on cotton, originally introduced in the budget of 2021, due to declining cotton production in the country. The removal of the duty, effective until September 30, 2025, aims to sustain the textile industry's raw material supply. The government increased the minimum support price by 8% due to the reduced domestic production.
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  UPSC Angle: Government withdraws 11% import duty on cotton.

  Key Facts:

  • Central Government withdrew 11% import duty on cotton.
  • Import duty was introduced in the budget of 2021.
  • Withdrawal effective until September 30, 2025.
  • Domestic cotton production is approximately 294 lakh bales.
  • Requirement is approximately 380 lakh bales.
  • Shortage is 24 lakh bales.
  • Cotton Corporation of India purchased approximately 100 lakh bales.
  • Cotton Corporation of India sold approximately 73 lakh bales in the market.
  • Government increased minimum support price by 8%.
• 2025-03-24 [Economy] — India Imposes Anti-Dumping Duty on Chinese Goods
  India has imposed anti-dumping duties on five products imported from China, including Soft Ferrite Cores, vacuum insulated flasks, aluminium foil, Trichloro Isocyanuric Acid, and PVC Paste Resin, for up to five years. This action aims to protect domestic industries from unfair trade practices by preventing the import of low-priced goods. The duties are based on recommendations from the Directorate General of Trade Remedies (DGTR).
  More details

  UPSC Angle: India imposes anti-dumping duties on five products from China.

  Key Facts:

  • India imposed anti-dumping duties on Chinese goods
  • Anti-dumping duties imposed on five Chinese products: Soft Ferrite Cores, vacuum insulated flasks, aluminium foil, Trichloro Isocyanuric Acid, and PVC Paste Resin.
  • Duties applicable for up to five years.
  • Based on recommendations from the Directorate General of Trade Remedies (DGTR).
  • Soft Ferrite Cores face up to 35% duty.
  • Other products have specific per-tonne tariffs.
  • Anti-dumping duties imposed on five Chinese products: Soft Ferrite Cores, vacuum insulated flasks, aluminium foil, Trichloro Isocyanuric Acid, and PVC Paste Resin
  • Duties in place for up to five years
  • Duty rates vary, with Soft Ferrite Cores facing up to 35% duty