Industrial Growth & Financial Governance (2025-26): UPSC Current Affairs Analysis & Study Strategy

In-Depth Analysis

The Big Picture

The 2025-26 period marks a shift from reactive to proactive governance in India's industrial and financial sectors. This is characterized by the tightening of regulatory standards (Indian Pharmacopoeia 10th Ed, AMR NAP-2), the diversification of financial instruments (Infrastructure Bonds, P2P IPOs), and a more stringent approach to foreign investment taxation (Tiger Global ruling) despite record FDI inflows.

Cross-Theme Insight

Together, these threads reveal a 'Formalization-Globalisation Paradox'. While India is liberalizing its markets to attract capital (record $81bn FDI, private bank entry into CGAS), it is simultaneously imposing stricter domestic standards and tax enforcement to shed the 'low-cost, low-quality' tag. The integration of ESG, infrastructure bonds, and the 'One Health' strategy for AMR shows that India's industrial policy is now aligning with high-standard global sustainability and health norms rather than just volume-driven growth.

Textbook vs Reality Gap

Standard textbooks like 'Indian Economy' by Nitin Singhania (p. 119) highlight DTAAs as a facilitator of FDI, noting the Mauritius-India DTAA as a key driver of investment. However, the 2026 Supreme Court ruling on Tiger Global and the NITI Aayog's proposal for 'Presumptive Taxation' for foreign firms represent a significant shift toward 'substance over form' in tax compliance. Similarly, while NCERT Class X Geography (p. 86) describes the tea industry largely in terms of labor-intensive production and climate, the current 'Tea Development & Promotion Scheme (2025-30)' pivots toward climate resilience, GI tagging, and mechanization to combat stagnation.

How This Theme Is Evolving

The theme has evolved from attracting any foreign capital to attracting 'strategic' capital, as evidenced by the review of Press Note 3 and the record $81bn FDI driven by manufacturing and services. We are moving toward a period where Indian corporate giants (SBI, LIC) are undergoing divestment or scrutiny to ensure financial stability as Domestic Systemically Important Institutions (D-SIIs).

UPSC Exam Intelligence

Previous Year Question Pattern

FDI trends and DTAA have been frequently tested (IAS 2010, nid: 5211), particularly the Mauritius route. Public health and AMR (IAS 2019, nid: 6445) are recurring themes focusing on causes of resistance. Recent questions have shifted towards specific financial instruments like the Digital Rupee (IAS 2024, nid: 6144) and the regulatory role of RBI, indicating that future exams will likely target Infrastructure Bonds and the new CGAS amendments.

Probable Prelims Angles

• Mandatory minimum maturity of 7 years for Infrastructure Bonds issued by banks.
• The 10th Edition of Indian Pharmacopoeia (IP 2026) and its coverage of biologics.
• Eligibility criteria for ITR-1 (Sahaj) regarding LTCG up to ₹1.25 lakh.
• Identification of SBI, HDFC, and ICICI as the 2025-confirmed D-SIBs.
• The seven categories of the Bharat Steel Awards (Efficiency, Sustainability, etc.).

Mains Answer Framework

• India's emergence as a global economic hub in 2025-26 is underpinned by a transition from traditional industrial growth to a high-standard, regulated 'Value-Addition' model.
• Regulatory Strengthening: Launch of IP 2026 and AMR NAP-2 ensures the pharmaceutical sector's credibility as the 'Pharmacy of the World'.. Financial Deepening: Expansion of CGAS accounts to private banks and the push for P2P IPOs (LenDenClub) democratize credit and savings.. Tax Sovereignty vs. FDI: Balancing the Tiger Global ruling's tax enforcement with the review of Press Note 3 to sustain manufacturing momentum.
• The convergence of stringent quality standards and a transparent tax-regulatory regime will be the bedrock of India's 'Viksit Bharat' industrial strategy.

Essay Connections

• Economic Sovereignty in an Interconnected World: Use the Tiger Global tax ruling and Press Note 3 review as case studies.
• Health as Wealth: The One Health approach in AMR NAP-2 as a necessity for sustainable development.

Preparation Strategy

Reading Approach

Start with Vivek Singh's Economy for the foundational definitions of FDI, FPI, and the tax structure. Then, apply the current threads (Tiger Global, record FDI data) to see how the government is refining these static concepts to prevent tax avoidance.

Textbook Roadmap

• Vivek Singh, Indian Economy (7th ed.), p. 98. Threads 3 & 6 (FDI rules and Press Note 3). Section 2.23 on FDI/FPI definitions and the role of DPIIT.
• Majid Husain, Geography of India (9th ed.), p. 60. Threads 1 & 7 (Pharma Sector). The section on the growth and rankings of the Pharmaceutical industry in India.
• Nitin Singhania, Indian Economy (2nd ed.), p. 119. Thread 6 (Capital Gains/DTAA). The sub-section on Double Taxation Avoidance Agreements (DTAA).

Revision Bullets

• FDI Inflow FY 2024-25: USD 81.04 billion (14% increase).
• AMR NAP Version 2: Integrated 'One Health' strategy across human and animal sectors.
• Infrastructure Bonds: Minimum 7-year maturity mandated by RBI.
• LTCG Threshold: Simplified ITR-1 for gains up to ₹1.25 lakh (Assessment Year 2025-26).
• Tea Sector: 1.303 billion kg produced in 2024; per capita consumption 840g.
• D-SIBs: SBI, HDFC, and ICICI remain the three confirmed entities for 2025.
• Tiger Global Ruling: SC establishes liability for capital gains tax despite tax treaties.

Sub-Themes and News Coverage (13 themes, 51 news items)

Pharmaceutical Sector Governance and Standards

Focus: Items relating to the regulation, quality standards, supply chain management, and global positioning of India's pharmaceutical industry.

UPSC Value: Highlights the regulatory framework (Pharmacopoeia, enforcement) and challenges (AMR, patents) in maintaining India's status as the 'Pharmacy of the World'.

6 news items in this theme:

• 2026-01-02 [Schemes & Programs] — 10th Edition of Indian Pharmacopoeia (IP 2026) Released
  The 10th edition of the Indian Pharmacopoeia (IP 2026) was released on January 2, 2026, by Union Health Minister J. P. Nadda. It updates India's official drug standards, reflecting advances in pharmaceuticals, biologics, blood products, and pharmacovigilance, strengthening India's role in global health governance.
  More details

  UPSC Angle: 10th Edition of Indian Pharmacopoeia (IP 2026) released.

  Key Facts:

  • 10th edition of the Indian Pharmacopoeia (IP 2026) released on January 2, 2026.
  • Released by Union Health Minister J. P. Nadda.
  • Updates India's official drug standards.
  • Reflects advances in pharmaceuticals, biologics, blood products, and pharmacovigilance.
• 2025-11-23 [Economy] — India Mulls Floating Global Tenders for Key Patented Drugs
  The Indian government is considering floating global tenders for over 65 patented drugs to ensure supplies for armed forces and healthcare establishments, amid limited domestic manufacturing capabilities. Prime Minister Modi has proposed a G20 initiative to combat the drug-terror nexus, emphasizing the need for a rethinking of global development parameters.
  More details

  UPSC Angle: India considers global tenders for patented drugs for armed forces.

  Key Facts:

  • Indian government
  • global tenders
  • 65 patented drugs
  • armed forces
  • healthcare establishments
  • Prime Minister Modi
  • G20 initiative
  • drug-terror nexus
• 2025-11-22 [Schemes & Programs] — India's Push Against Antimicrobial Resistance (AMR)
  India's renewed effort to combat drug-resistant infections is highlighted by the launch of the National Action Plan – AMR (Version 2). This plan addresses the urgent need for an integrated One Health strategy due to the ongoing misuse of antibiotics across human, animal, and environmental sectors. The policy aims to correct the shortcomings of the previous 2017-21 plan and strengthen the national response to the growing public health threat.
  More details

  UPSC Angle: India launches National Action Plan – AMR (Version 2).

  Key Facts:

  • National Action Plan – AMR (Version 2) launched to combat drug-resistant infections.
  • WHO Global AMR Surveillance Report 2023 indicates 1 in 3 infections in India are resistant to common antibiotics, compared to 1 in 6 globally.
  • Critical pathogens like E. coli and Klebsiella pneumoniae show resistance to last-line drugs.
  • The plan emphasizes strict regulation of antibiotic misuse across human health, veterinary sectors, and agriculture.
  • The plan aims to strengthen the One Health framework to reduce cross-sectoral transmission of resistance.
  • Second National Action Plan on Antimicrobial Resistance (AMR)
  • One Health framework
• 2025-10-28 [Polity & Governance] — Big Tech's Contempt for Indian Public Health
  An article in The Hindu highlights the urgent need to address Big Tech's violations of Indian drug advertising laws, specifically the Drugs and Magic Remedies (Objectionable Advertisements) Act (DMRA), noting their disregard for compliance compared to stricter US regulations and suggests legal reforms to ensure accountability in India.
  More details

  UPSC Angle: Big Tech violations of Drugs and Magic Remedies Act (DMRA).

  Key Facts:

  • The article addresses Big Tech's violations of Indian drug advertising laws.
  • The Drugs and Magic Remedies (Objectionable Advertisements) Act (DMRA) is mentioned.
  • The article compares Big Tech's compliance in India versus the US.
  • The article suggests legal reforms to hold Big Tech accountable in India.
• 2025-10-13 [Economy] — Searches at Sresan Pharma
  On October 13, 2025, the Enforcement Directorate (ED) conducted searches at seven locations in Tamil Nadu, including properties linked to key employees of Sresan Pharma and officials of the Tamil Nadu Drugs Control Department. All drug manufacturing licenses of Sresan Pharmaceuticals have been cancelled, and the company has been permanently shut down, with the Tamil Nadu government ordering inspections of all pharmaceutical manufacturing units across the State.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • October 13, 2025
  • Enforcement Directorate (ED)
  • 7 locations in Tamil Nadu
  • Sresan Pharma
  • Tamil Nadu Drugs Control Department
  • All drug manufacturing licenses of Sresan Pharmaceuticals cancelled
  • Sresan Pharmaceuticals permanently shut down
  • Comprehensive inspections of all pharmaceutical manufacturing units across the State
• 2025-04-18 [Economy] — India's Global Pharmaceutical Footprint
  The Department of Pharmaceuticals aims to make India the world's largest provider of quality medicines at reasonable prices, transforming the country's global pharmaceutical footprint. India's pharmaceutical market for FY 2023-24 is valued at USD 50 billion, with domestic consumption valued at USD 23.5 billion and exports valued at USD 26.5 billion.
  More details

  UPSC Angle: India aims to be world's largest provider of quality medicines.

  Key Facts:

  • Pharmaceutical market value (FY 2023-24): USD 50 billion
  • Domestic consumption value: USD 23.5 billion
  • Export value: USD 26.5 billion

Evolution of Debt Market Instruments and Regulation

Focus: Developments in the Indian bond market, including new instrument frameworks (Green, Infra, ESG, STRIPS) and regulatory easing for investors.

UPSC Value: Illustrates the deepening of the Indian financial market through product diversification and regulatory liberalization to attract capital.

6 news items in this theme:

• 2025-12-29 [Economy] — RBI Allows Banks to Issue Infrastructure Bonds
  The Reserve Bank of India (RBI) is allowing banks to issue infrastructure bonds with a minimum maturity of 7 years. Typical tenures range between 10 to 15 years, and may extend further. Public Sector Banks (PSBs) dominate issuance due to regulatory incentives and government backing.
  More details

  UPSC Angle: RBI allows banks to issue infrastructure bonds with 7-year maturity.

  Key Facts:

  • RBI allows banks to issue infrastructure bonds
  • Minimum maturity: 7 years
  • Typical tenures range: 10 to 15 years
  • PSBs dominate issuance
• 2025-09-11 [Economy] — India to relax foreign investor regulations in government bonds
  The Securities and Exchange Board of India (SEBI) is set to announce relaxed regulations for foreign investment in government securities, effective from February 2026. This move is aimed at attracting more foreign capital into the Indian debt market.
  More details

  UPSC Angle: SEBI to relax foreign investor regulations in government bonds.

  Key Facts:

  • SEBI
  • Securities and Exchange Board of India
  • foreign investment
  • government securities
  • regulatory relaxations
  • February 2026
• 2025-09-02 [Economy] — Rising Bond Yields in India
  India's 10-year benchmark government bond yield has risen from around 6.34% to 6.60% despite the Reserve Bank of India (RBI) cutting the repo rate by 100 basis points over seven months. This divergence signals investor unease in the bond market in India over inflation, fiscal risks, and government borrowing requirements, leading to falling bond prices due to selling pressure.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • 10-year bond yield: Rose from around 6.34% to 6.60%
  • RBI repo rate cut: 100 basis points over seven months
  • Possible revenue loss: ₹50,000–60,000 crore
• 2025-06-14 [Economy] — RBI Allows Trading of State Government Securities in STRIPS
  RBI has allowed state government securities to be traded in STRIPS format (Separate Trading of Registered Interest and Principal of Securities), enabling traders to separate and trade principal and interest components of bonds individually. This move aims to deepen the bond market and enhance liquidity in state government securities.
  More details

  UPSC Angle: RBI allows trading of state government securities in STRIPS format.

  Key Facts:

  • RBI allows trading of state government securities in STRIPS format
  • STRIPS: Separate Trading of Registered Interest and Principal of Securities
• 2025-06-11 [Economy] — SEBI issues new ESG debt framework
  The Securities and Exchange Board of India (SEBI) introduced a comprehensive framework to govern the issuance and listing of Environmental, Social, and Governance (ESG) debt securities. This framework specifically governs social bonds, sustainability bonds, and Sustainability-Linked Bonds (SLBs), while excluding green bonds, and the new regulations came into effect on June 5, 2025.
  More details

  UPSC Angle: SEBI issues new framework for ESG debt securities.

  Key Facts:

  • Framework governs social bonds, sustainability bonds, and Sustainability-Linked Bonds (SLBs)
  • Framework excludes green bonds
  • New regulations came into effect on June 5, 2025
• 2025-03-15 [Economy] — India's Sovereign Green Bonds Face Muted Response
  India's Sovereign Green Bonds (SGrBs) have received a lukewarm response, with bonds worth ₹7,443 crore remaining unsold despite rule changes allowing NRIs and foreign portfolio investors to participate without restrictions. SGrBs are issued by sovereign entities to fund "green projects" that encourage energy efficiency, reduce carbon emissions, and promote climate resilience. The government's inability to raise adequate proceeds through bonds increases fiscal constraints.
  More details

  UPSC Angle: India's Sovereign Green Bonds face muted response.

  Key Facts:

  • Unsold SGrBs: ₹7,443 crore
  • Framework formulated: 2022
  • Green projects: Energy efficiency, carbon emission reduction, climate resilience, natural ecosystem improvement
  • SGrBs are issued by: sovereign entities

Indian Capital Gains and Foreign Investment Taxation

Focus: Developments in India's tax framework regarding capital gains, foreign direct investment routing, and compliance for foreign entities.

UPSC Value: Understanding the evolving legal and regulatory landscape of direct taxation and FDI is crucial for Economy and Governance papers.

5 news items in this theme:

• 2026-01-17 [Economy] — Tiger Global liable to pay capital gains tax
  The Supreme Court ruled that Tiger Global must pay capital gains tax on its sale of Flipkart shares, setting a precedent for investors from countries with tax treaties with India.
  More details

  UPSC Angle: SC rules Tiger Global must pay capital gains tax on Flipkart shares.

• 2025-11-25 [Economy] — Capital Gains Accounts Scheme (CGAS) Amendment
  The Capital Gains Accounts Scheme (CGAS), 1988 has been amended to authorize all non-rural branches of 19 major private banks to receive deposits and maintain CGAS accounts. The amended scheme defines 'electronic mode' of deposit to include credit/debit cards, net banking, UPI, IMPS, RTGS, NEFT, BHIM/Aadhaar Pay etc.
  More details

  UPSC Angle: CGAS amended to authorize private banks to receive deposits.

  Key Facts:

  • CGAS Deposits: Now includes non-rural branches of 19 major private banks
  • Non-rural branch definition: Branches at centres with population 10,000 or more (per 2011 census)
  • Electronic mode definition: Includes credit/debit cards, net banking, UPI, IMPS, RTGS, NEFT, BHIM/Aadhaar Pay etc.
  • CGAS, 1988: Introduced to help taxpayers claim exemptions on long-term capital gains
  • Section 54 of the Income Tax Act: Income from capital gains must be reinvested within 3 years to avoid tax liability
  • Short-term capital gains: Not eligible for CGAS
  • The Ministry of Finance notified the Capital Gains Accounts (Second Amendment) Scheme, 2025.
  • The scheme introduces changes to the Capital Gains Account Scheme (CGAS), 1988.
  • All non-rural branches of 19 major private banks are now authorized to receive deposits and maintain CGAS accounts.
• 2025-10-04 [Economy] — NITI Aayog Proposes Presumptive Taxation for Foreign Companies
  NITI Aayog has proposed an optional presumptive taxation regime for foreign companies to reduce litigation, improve compliance, and encourage higher FDI inflows. The system allows foreign companies to choose between the presumptive regime and the regular tax framework. Profit attribution percentages would vary across industries, ranging between 5% and 30%.
  More details

  UPSC Angle: NITI Aayog Proposes Presumptive Taxation for Foreign Companies.

  Key Facts:

  • Cumulative FDI inflows crossed USD 1 trillion between April 2000 and March 2025
  • Profit attribution percentages would vary across industries, ranging between 5% and 30%
  • In technology, 5% of offshore supply and 20% of onshore services could be deemed profitable
• 2025-09-15 [Economy] — India's Outward FDI via Tax Havens
  Indian companies are increasingly routing outward foreign direct investment (FDI) through low-tax jurisdictions, such as Singapore, Mauritius, UAE, the Netherlands, UK, and Switzerland. In 2023-24, 56% of India's outward FDI (₹1,946 crore of ₹3,488.5 crore) went to these jurisdictions, increasing to 63% in Q1 of 2024-25.
  More details

  UPSC Angle: Indian companies routing FDI through tax havens; impacts revenue and transparency.

  Key Facts:

  • India
  • outward foreign direct investment (FDI)
  • Singapore
  • Mauritius
  • UAE
  • Netherlands
  • UK
  • Switzerland
  • 56%
  • 2023-24
  • ₹1,946 crore
  • ₹3,488.5 crore
  • 63%
  • Q1
  • 2024-25
• 2025-05-01 [Economy] — New Income Tax Return (ITR) Forms Notified
  The government has notified ITR forms 1 and 4 for Assessment Year 2025-26, which simplifies the filing process for individuals with salary or presumptive income having long-term capital gains (LTCG) up to ₹1.25 lakh from listed equities. These taxpayers can now use the simpler ITR-1 (Sahaj) and ITR-4 (Sugam) forms, which they were previously required to file using the more complex ITR-2.
  More details

  UPSC Angle: Government notified ITR forms 1 and 4 for Assessment Year 2025-26.

  Key Facts:

  • ITR forms 1 and 4 notified for Assessment Year 2025-26.
  • Individuals with LTCG up to ₹1.25 lakh from listed equities can use ITR 1 and 4.
  • ITR Forms: ITR-1 and ITR-4 notified
  • Assessment Year: 2025-26
  • LTCG Limit: ₹1.25 lakh
  • Applicable Forms: ITR-1 (Sahaj) and ITR-4 (Sugam)

Strategic Developments in the Insurance Sector

Focus: A collection of strategic partnerships, acquisitions, and product launches aimed at expanding market reach and capabilities within the Indian insurance industry.

UPSC Value: Useful for tracking the evolution of the insurance sector, specifically regarding bancassurance models, foreign investment, and niche product diversification.

4 news items in this theme:

• 2026-02-05 [Economy] — Equitas Small Finance Bank and Bharti AXA Life Insurance Partner
  Equitas Small Finance Bank ( Equitas SFB) signed a strategic bancassurance partnership with Bharti AXA Life Insurance to expand the reach of life insurance across India. Bharti AXA Life will offer its life insurance products to customers of Equitas SFB.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • Equitas SFB partnered with Bharti AXA Life Insurance.
  • Bharti AXA Life will offer its life insurance products to Equitas SFB customers.
• 2025-11-13 [Economy] — Axis Max Life Partners with IFC to Advance Inclusive Life Insurance in India
  Axis Max Life Insurance Limited, a Joint Venture (JV) between Max Financial Services Limited (MFSL) and Axis Bank Limited, partnered with the International Finance Corporation (IFC), the lending arm of the World Bank (WB), to promote inclusive life insurance services in India. The aim of the partnership is to expand access to life insurance for underserved and low-income communities, with a special focus on women, promoting financial inclusion across India.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • IFC invested Rs. 285 crore (approximately USD 33 million) in Axis Max Life Insurance
  • Partnership aligns with India's vision of “Insurance for All by 2047”
• 2025-06-08 [Economy] — Central Bank of India Acquires Stakes in Future Generali
  Central Bank of India acquired a 91% stake in Future Generali India for Rs 451 crore and a 25.18% stake in Future Generali India Life Insurance for Rs 57 crore, completing the acquisition with approvals from CCI, RBI, and IRDAI. Future Generali's insurance businesses, established in 2006 as joint ventures between Future Enterprises Ltd and Generali Group, showed strong growth.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • Central Bank of India acquired a 91% stake in Future Generali India for Rs 451 crore.
  • Central Bank of India acquired a 25.18% stake in Future Generali India Life Insurance for Rs 57 crore.
  • Future Generali's insurance businesses were established in 2006 as joint ventures between Future Enterprises Ltd and Generali Group.
• 2025-04-22 [Economy] — Bajaj Allianz Life Launches Superwoman Term Insurance
  Bajaj Allianz Life Insurance launched a new term insurance product named Superwoman Term (SWT), designed exclusively for women. The new product covers 60 critical illnesses, including breast, cervix, and ovarian cancers and manages over Rs. 2,200 crore in assets.
  More details

  UPSC Angle: Bajaj Allianz Life launches Superwoman Term insurance for women.

  Key Facts:

  • Company: Bajaj Allianz Life Insurance
  • Product: Superwoman Term (SWT)
  • Target: Women
  • Coverage: 60 critical illnesses (including breast, cervix, and ovarian cancers)
  • Assets under management: Rs. 2,200 crore

Strategic and Regulatory Evolution of India's Pharmaceutical Sector

Focus: A series of developments tracking the Indian pharmaceutical industry's growth through domestic regulatory updates, capital market activity, bilateral trade agreements, and major corporate acquisitions.

UPSC Value: Relevant for GS Paper III (Economy and Industry), highlighting India's strengthening position as a global pharmaceutical hub through policy support, financial formalization, and global expansion.

4 news items in this theme:

• 2026-01-20 [Economy] — Sun Pharma offer to acquire Organon
  Sun Pharma has submitted a non-binding offer to acquire Organon.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • Sun Pharma
  • Organon
• 2025-07-11 [Economy] — Asston Pharmaceuticals IPO Subscribed 173 Times
  The IPO of Asston Pharmaceuticals was heavily oversubscribed, reaching 173.35 times its offering by the final day of bidding. Non-institutional investors bid 261.66 times their quota, retail investors subscribed 172.06 times, and qualified institutional buyers (QIBs) subscribed 85.76 times.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • Asston Pharmaceuticals
  • IPO
  • 173.35 times subscribed
  • Non-institutional investors: 261.66 times
  • Retail investors: 172.06 times
  • QIBs: 85.76 times
• 2025-07-06 [International Relations] — India, Trinidad and Tobago ink deals on pharma, finance
  India and Trinidad and Tobago have signed agreements focusing on pharmaceuticals and finance, aiming to strengthen bilateral relations. These deals signal enhanced cooperation and trade between the two countries.
  More details

  UPSC Angle: India and Trinidad & Tobago sign deals on pharma and finance.

  Key Facts:

  • India
  • Trinidad and Tobago
  • Pharmaceuticals
  • Finance
  • Bilateral agreements
• 2025-03-05 [Schemes & Programs] — India to release new list of OTC drugs
  India is set to release a new list of over-the-counter (OTC) drugs, which can be purchased without a prescription. This move is expected to benefit generic medicine companies like Cipla and Sun Pharma.
  More details

  UPSC Angle: India to release new list of over-the-counter (OTC) drugs.

  Key Facts:

  • India is to release a new list of OTC drugs.

Strategic and Regulatory Evolution of India's Systemically Important Financial Institutions

Focus: Developments concerning the ownership restructuring, investment scrutiny, and regulatory classification of India's 'too big to fail' entities, specifically LIC and SBI.

UPSC Value: Crucial for understanding financial stability, the role of state-backed institutional investors, and banking sector reforms under GS Paper III.

4 news items in this theme:

• 2025-12-03 [Economy] — RBI Confirms D-SIBs
  The RBI's 2025 list confirms that State Bank of India, HDFC Bank, and ICICI Bank continue as Domestic Systemically Important Banks (D‑SIBs).
  More details

  UPSC Angle: RBI confirms SBI, HDFC, and ICICI as D-SIBs in 2025.

  Key Facts:

  • State Bank of India, HDFC Bank, and ICICI Bank continue as Domestic Systemically Important Banks (D‑SIBs).
• 2025-10-26 [Economy] — India's LIC Investment in Adani Group Under Scrutiny
  Concerns are rising about LIC's investment of ₹33,000 crore in the Adani Group, particularly due to the timing coinciding with corruption charges against the group in the USA. Allegations suggest the Department of Financial Services influenced the investment to stabilize Adani Group amidst declining investor confidence. A probe is demanded to investigate potential misuse of public funds.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • LIC investment in Adani Group: ₹33,000 crore
  • Timing: During corruption charges against Adani Group in USA
  • Allegation: Department of Financial Services influenced investment
  • Demand: Probe into potential misuse of public funds
  • Demanding authority: Public Accounts Committee (PAC)
• 2025-09-18 [Economy] — SBI Divests Stake in Yes Bank
  State Bank of India (SBI) has completed the divestment of a 13.18% stake in Yes Bank to Japan's Sumitomo Mitsui Banking Corporation (SMBC) for ₹8,889 crore, selling 413.44 crore shares at ₹21.50 per share. This is part of a larger ₹13,483 crore deal, where SMBC aims to acquire up to a 24.99% stake in Yes Bank, marking one of the largest cross-border banking deals in India.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • State Bank of India (SBI)
  • Divestment of a 13.18% stake in Yes Bank to Japan's Sumitomo Mitsui Banking Corporation (SMBC)
  • ₹8,889 crore
  • selling 413.44 crore shares at ₹21.50 per share
  • Yes Bank
  • Sumitomo Mitsui Banking Corporation (SMBC)
  • 13.18% stake divestment
  • 413.44 crore shares
  • ₹21.50 per share
  • RBI approval
  • Competition Commission of India approval
• 2025-08-25 [Economy] — LIC to be reclassified as public shareholder in IDBI Bank
  Life Insurance Corporation of India (LIC), which holds a 50% stake in IDBI Bank, will be reclassified as a public shareholder after the lender's strategic disinvestment is finalized. LIC acquired a controlling stake in 2019 to facilitate IDBI Bank's rescue.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • LIC
  • IDBI Bank
  • public shareholder
  • 50% stake

Strategic and Administrative Evolution of the Indian Defence Sector

Focus: Developments involving leadership appointments, honorary recognitions, and long-term fiscal projections within the Indian Ministry of Defence and its various branches.

UPSC Value: Provides a comprehensive overview of the administrative, military, and financial aspects of India's national security apparatus, relevant for GS Paper II (Institutional Framework) and GS Paper III (Security).

4 news items in this theme:

• 2025-11-05 [Polity & Governance] — Viswajeet Ray Appointed as Controller General of Defence Accounts
  Viswajeet Ray has been appointed as the Controller General of Defence Accounts.
  More details

  UPSC Angle: Viswajeet Ray appointed as Controller General of Defence Accounts.

  Key Facts:

  • Viswajeet Ray: Appointed as Controller General of Defence Accounts
• 2025-05-30 [Defense & Security] — Defence budget to rise five-fold to Rs 31.7 lakh crore by 2047: CII KPMG Report
  According to a CII KPMG Report, India's Defence budget is projected to increase five-fold to Rs 31.7 lakh crore by 2047.
  More details

  UPSC Angle: India's Defence budget is projected to increase to Rs 31.7 lakh crore by 2047.

  Key Facts:

  • India's Defence budget projection by 2047: Rs 31.7 lakh crore
  • Source: CII KPMG Report
• 2025-05-15 [Defense & Security] — Neeraj Chopra conferred honorary rank of Lt. Col. in Territorial Army
  Olympic gold medallist Neeraj Chopra has been granted the honorary rank of Lieutenant Colonel in the Territorial Army. The Ministry of Defence's Department of Military Affairs issued the notification on May 13, 2025. Mr. Chopra was previously a Subedar Major in the Indian Army and was scheduled to retire this year.
  More details

  UPSC Angle: Neeraj Chopra conferred honorary rank of Lt. Col. in Territorial Army.

  Key Facts:

  • Awardee: Neeraj Chopra
  • Honorary rank: Lieutenant Colonel
  • Organization: Territorial Army
  • Notification date: May 13, 2025
  • Issued by: Ministry of Defence's Department of Military Affairs
  • Previous rank: Subedar Major
• 2025-05-03 [Defense & Security] — Air Marshal Narmdeshwar Tiwari Appointed Vice Chief of IAF
  Air Marshal Narmdeshwar Tiwari assumed the position of Vice Chief of the Air Staff of the Indian Air Force (IAF). He is a decorated officer with over three decades of service, bringing operational expertise, flight testing credentials, and strategic leadership experience.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • Air Marshal Narmdeshwar Tiwari appointed Vice Chief of the Air Staff of the Indian Air Force (IAF)
  • Over three decades of distinguished service

Evolution of India's Foreign Direct Investment (FDI) Landscape

Focus: Items specifically focused on the lifecycle of FDI in India: performance data, taxation policy changes for foreign firms, and regulatory framework reviews.

UPSC Value: Connects the statistical performance of FDI with the specific policy levers (taxation and Press Note 3) being used to sustain it.

3 news items in this theme:

• 2026-01-19 [Economy] — India's Manufacturing Sector
  India is reviewing its Foreign Direct Investment (FDI) framework, especially Press Note 3 (PN3), to support manufacturing exports in electronics, automobiles, and renewables. The HSBC India Manufacturing PMI has consistently remained in the expansion zone (above 50), signalling broad-based improvement in new orders, output, and employment.
  More details

  UPSC Angle: India reviewing FDI framework, especially Press Note 3 (PN3).

  Key Facts:

  • India's manufacturing PMI has consistently remained in the expansion zone (above 50)
  • The PMI rose from 58.4 in June 2025 to 59.1 in July 2025
  • Over 5.70 crore MSMEs are registered on the Udyam Registration and Assist Platforms as of June 2025
  • Raising and Accelerating MSME Performance (RAMP) Scheme outlay: ₹6,062.45 crore
• 2025-10-04 [Economy] — NITI Aayog Proposes Presumptive Taxation for Foreign Firms
  NITI Aayog, in its first Tax Policy Working Paper (2025), has suggested an optional presumptive taxation regime for foreign firms to simplify compliance, reduce litigation, and bring certainty on Permanent Establishment (PE) disputes. The aim is to provide certainty, reduce litigation, simplify compliance, and secure predictable revenue. India has received rising FDI inflows, from about USD 6 billion in 2005–06 to USD 50 billion in 2024–25.
  More details

  UPSC Angle: NITI Aayog Proposes Presumptive Taxation for Foreign Firms.

  Key Facts:

  • India's FDI inflows rose from USD 6 billion in 2005–06 to USD 50 billion in 2024–25
  • Optional presumptive taxation regime for foreign firms
  • Taxation based on a fixed deemed profit percentage of gross receipts
  • Reduce litigation, simplify compliance, and secure predictable revenue
  • India's FDI inflows: About USD 6 billion in 2005–06 to USD 50 billion in 2024–25
• 2025-05-28 [Economy] — India's Record FDI in FY 2024-25
  India achieved a record FDI inflow of USD 81.04 billion in FY 2024–25, a 14% increase from the previous year. The services sector led the surge with a 40.77% increase, followed by manufacturing and software & hardware. Maharashtra, Karnataka, and Delhi were the top FDI destinations.
  More details

  UPSC Angle: India achieved a record FDI inflow of USD 81.04 billion in FY25.

  Key Facts:

  • FDI inflow: USD 81.04 billion in FY 2024–25.
  • Increase of 14% from the previous year.
  • Services sector increase: 40.77%.
  • Top FDI destinations: Maharashtra, Karnataka, and Delhi.
  • India's FDI inflow in FY 2024-25: USD 81.04 billion
  • Increase over FY 2023-24: 14%
  • FDI inflow in FY 2013-14: USD 36.05 billion
  • Reforms from 2014–2019: Liberalized FDI in Defence, Insurance, Pension; Eased norms in Construction, Civil Aviation, Retail Trading
  • Reforms from 2019–2024: 100% FDI via automatic route in coal mining, contract manufacturing, insurance intermediaries
  • 2025 Union Budget Proposal: Raise FDI cap from 74% to 100% for firms reinvesting all premiums domestically

Strategic Evolution of the Indian Steel Sector

Focus: A collection of developments highlighting government policy, infrastructure expansion, and incentive frameworks specifically within the Indian steel industry.

UPSC Value: Useful for tracking the steel sector's trajectory (GS-3) regarding green transition, regional industrialization, and performance incentives.

3 news items in this theme:

• 2026-01-10 [Economy] — Bharat Steel Awards Introduced
  The Ministry of Steel introduced the Bharat Steel Awards to recognise exemplary performance and significant contributions across critical areas of the steel sector, featuring 7 categories, including Efficiency, Export, Sustainability, Indigenization, Innovation, Safety, and Exceptional Contribution.
  More details

  UPSC Angle: Bharat Steel Awards introduced.

  Key Facts:

  • Bharat Steel Awards introduced by Ministry of Steel
  • 7 categories: Efficiency, Export, Sustainability, Indigenization, Innovation, Safety, Exceptional Contribution
  • Awards recognise exemplary performance in the steel sector
• 2025-07-26 [Economy] — India's Green Steel Procurement Policy
  The Indian government is finalizing a green steel procurement policy that may mandate 25% of public steel purchases to be low-emission “green steel”.
  More details

  UPSC Angle: India's green steel procurement policy may mandate 25% low-emission steel.

  Key Facts:

  • Government is finalising green steel procurement policy
  • Potentially mandating that 25% of public steel purchases be low-emission green steel
• 2025-07-19 [Economy] — Maharashtra to Get First Integrated Steel Plant in Vidarbha
  Maharashtra Chief Minister Devendra Fadnavis laid the foundation for Vidarbha's first integrated steel plant in Gadchiroli, developed by Lloyds Metals & Energy Limited (LMEL). This is a major step toward industrial diversification, economic upliftment, and sustainable infrastructure in the mineral-rich but underdeveloped region.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • Vidarbha's first integrated steel plant to be established in Gadchiroli, Maharashtra
  • Developed by Lloyds Metals & Energy Limited (LMEL)
  • Foundation laid by Maharashtra Chief Minister Devendra Fadnavis

Indian Equity Capital Market and IPO Regulatory Landscape

Focus: Developments involving planned Initial Public Offerings (IPOs) and the regulatory framework governing public shareholding and listing in India.

UPSC Value: Essential for understanding financial market reforms, corporate governance, and the role of SEBI in facilitating market liquidity and participation.

3 news items in this theme:

• 2025-12-11 [Economy] — LenDenClub Plans IPO
  Vartis Platforms, the operator of LenDenClub, is planning an initial public offering (IPO) within the next 18 to 36 months. The company aims to be the first P2P lender in India to be listed.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • Vartis Platforms
  • LenDenClub
  • Initial Public Offering (IPO)
  • 18-36 months
• 2025-11-09 [Economy] — SBI to Divest Stake in SBI Funds Management via IPO
  The State Bank of India (SBI) will divest 6.30% stake in SBI Funds Management Ltd (SBIFML) via an Initial Public Offering (IPO). Amundi India Holding will also sell 3.70% stake.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • SBI to divest 3.20 crore shares (6.30%) of its stake in SBI Funds Management Ltd (SBIFML) via an IPO
  • Amundi India Holding to sell 1.88 crore shares (3.70%)
  • Jointly offering 10.0013% equity to the public
  • Expected completion in 2026
• 2025-08-19 [Economy] — Minimum Public Shareholding (MPS)
  SEBI has proposed increasing the flexibility of minimum public shareholding (MPS) and minimum public offer (MPO) for companies aspiring to get listed. The objective is to enhance liquidity in the market, promote fair price discovery and ensure broader participation and corporate governance.
  More details

  UPSC Angle: SEBI proposes increasing flexibility of MPS and MPO for listed companies.

  Key Facts:

  • Regulatory requirement for Minimum Public Shareholding (MPS) is laid down under Securities Contracts (Regulation) Rules, 1957 and SEBI LODR Regulations
  • Maximum period allowed for newly listed companies (with market cap less than ₹1 trillion) to comply with the 25% Minimum Public Shareholding (MPS) requirement: 3 years
  • If the public shareholding of a listed company falls below 25%, the maximum time within which it must be restored to 25%: 12 months

Indian Tea Industry: Performance and Policy

Focus: A collection of items detailing the production statistics, export growth, and the overarching development scheme for the Indian tea sector in 2024-2025.

UPSC Value: Provides a comprehensive case study on how sectoral performance data (production and exports) informs and is supported by long-term government development and promotion schemes.

3 news items in this theme:

• 2025-12-03 [Schemes & Programs] — Tea Development & Promotion Scheme Approved
  A new centrally sponsored Tea Development & Promotion Scheme has been approved for 2025–30, focusing on productivity, quality, export promotion, worker welfare, GI tagging, mechanisation, and climate resilience.
  More details

  UPSC Angle: Tea Development & Promotion Scheme approved for 2025–30.

  Key Facts:

  • The Tea Development & Promotion Scheme is a new centrally sponsored scheme approved for 2025–30.
• 2025-09-24 [Economy] — Indian Tea Sector
  India is the second-largest producer of tea globally, producing 1.303 billion kg in 2024, with a per capita consumption of 840 grams per year. The government and industry are taking steps to modernize tea estates, promote the India Tea brand, and provide incentives for organic and speciality tea production. South America and Africa are identified as emerging opportunities for India's tea exports.
  More details

  UPSC Angle: India is the second-largest producer of tea globally.

  Key Facts:

  • India's rank in global tea production: Second-largest
  • India's tea production in 2024: 1.303 billion kg
  • India's per capita tea consumption: 840 grams per year
  • Emerging markets for India's tea exports: South America and Africa
  • India's rank in tea production: Second-largest
  • India's rank in tea exporter: Third-largest
  • India produced in 2024: 1.303 billion kg
  • India consumed in 2024: 1.22 billion kg
  • Total global tea output in 2024: 7.074 billion kg
  • Total global tea consumption in 2024: 6.97 billion kg
• 2025-06-16 [Economy] — Tea Exports Increased in 2024
  Tea exports from India saw a 9.92% year-on-year increase, reaching 254.67 million kilograms in Calendar Year 2024, compared to 231.69 million kilograms in CY23, according to data released by the Tea Board of India. North India produced 154.81 million kg of tea in CY24, a 9.79% increase, while South India produced 99.86 million kg, a 10.11% increase.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • Tea exports: 254.67 million kg in CY24
  • 9. 92% year-on-year increase
  • North India tea production: 154.81 million kg in CY24 (+9.79%)
  • South India tea production: 99.86 million kg in CY24 (+10.11%)

India's Multi-Pronged Tobacco Control Strategy

Focus: Items detailing India's comprehensive approach to tobacco control through public awareness initiatives, economic impact assessments, and strict regulatory enforcement against industry lobbying.

UPSC Value: Demonstrates the implementation of public health policy and the state's role in balancing economic costs with the constitutional right to health.

3 news items in this theme:

• 2025-11-24 [Economy] — India Sticks to E-Cigarette Ban, Snubs Philip Morris
  India has rejected Philip Morris International's lobbying efforts to relax the 2019 ban on e-cigarettes, including heat-not-burn devices like IQOS. The government remains committed to its evidence-based tobacco control measures and will continue to prohibit these products.
  More details

  UPSC Angle: India maintains ban on e-cigarettes, rejecting Philip Morris lobbying.

  Key Facts:

  • India: Rejected relaxation of e-cigarette ban
  • Company: Philip Morris International
  • Product: IQOS (heat-not-burn device)
  • Ban: Includes heat-not-burn devices
  • Government commitment: Evidence-based tobacco control measures
• 2025-08-24 [Schemes & Programs] — Vision of a Tobacco-Free India
  India aims to strengthen its tobacco control framework to reduce the health and economic burden caused by tobacco use. In 2017, the annual economic costs of tobacco were ₹1,773.4 billion (1.04% of GDP), with an additional ₹566.7 billion (0.33% of GDP) in healthcare costs due to second-hand smoking. The plan involves stringent laws, higher taxation, effective awareness campaigns, social support, and school-based interventions.
  More details

  UPSC Angle: India aims to strengthen tobacco control framework.

  Key Facts:

  • Annual economic costs of tobacco use (2017): ₹1,773.4 billion (1.04% of GDP)
  • Annual healthcare costs due to second-hand smoking (2017): ₹566.7 billion (0.33% of GDP)
  • Tax burden on bidis: 22%
  • Tax burden on cigarettes: 50%
  • WHO recommends a 75% tax on tobacco products
• 2025-06-04 [Schemes & Programs] — World No Tobacco Day Awareness Quiz 2025
  The World No Tobacco Day Awareness Quiz 2025 is a large-scale initiative promoting healthy lifestyles and tobacco-free living, available in 12 Indian languages to align with the National Education Policy (NEP) 2020. Participants will receive a digital certificate from MyGov.
  More details

  UPSC Angle: World No Tobacco Day Quiz aligns with National Education Policy.

  Key Facts:

  • World No Tobacco Day Awareness Quiz 2025
  • Multilingual quiz available in 12 Indian languages
  • Aligns with the National Education Policy (NEP) 2020
  • Digital certificate from MyGov for participants

Strategic and Financial Evolution of Infosys

Focus: Corporate and financial strategies of Infosys, including international acquisitions, strategic digital alliances, and shareholder capital return programs.

UPSC Value: Analyzes the growth strategies and capital management of major Indian IT firms in response to global digital transformation trends and macroeconomic conditions.

3 news items in this theme:

• 2025-10-25 [Economy] — India's IT Sector Faces Macroeconomic Headwinds
  India's IT services sector anticipates modest Q2 2025 results due to macroeconomic uncertainty and client caution. Tier-I firms like Infosys and HCLTech show slight growth, while mid-tier companies are set to outperform. Reliance partners with Google to offer AI Pro for free, providing access to Google's Gemini 2.5 Pro model and 2 TB of cloud storage for eligible Jio users.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • Infosys expects 2% quarter-on-quarter growth.
  • HCLTech expects 1.7% quarter-on-quarter growth.
  • Reliance partners with Google to offer AI Pro for free.
  • AI Pro includes access to Google's Gemini 2.5 Pro model and 2 TB of cloud storage.
• 2025-09-12 [Economy] — Infosys Approves Share Buyback and Enters Strategic Alliance
  Infosys' board approved a share buyback of equity shares worth Rs 18,000 crore at Rs 1,800 per share, covering 10 crore shares (2.41% stake). Infosys has also entered a strategic alliance with NYSE-listed HanesBrands Inc. for a ten-year engagement across digital, business applications, and data operations.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • Infosys share buyback: Rs 18,000 crore at Rs 1,800 per share
  • Covers 10 crore shares (2.41% stake)
  • Strategic alliance with HanesBrands Inc.
  • Ten-year engagement
• 2025-08-14 [Economy] — Infosys to Acquire Stake in Versent Group
  Infosys, through Infosys Singapore, will acquire a 75% stake in Versent Group, an Australian telecommunications and technology firm unit (Telstra Group), for approximately ₹1,336 crore ($153 million). This joint venture aims to deliver cloud and digital transformation services.
  More details

  UPSC Angle: Not exam-relevant

  Key Facts:

  • Infosys to acquire 75% stake in Versent Group for ₹1,336 crore ($153 million)
  • Acquisition to be made through Infosys Singapore
  • Versent Group is a unit of Australian telecommunications and technology firm Telstra Group
  • Aims to deliver cloud and digital transformation services