UPSC Key: Free Trade Agreement, Screen Addiction and Health of the Soil

Drone swarming to smarter war rooms: Army’s AI roadmap for ops by 2026-27

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies III: Security challenges and their management in border areas – linkages of organized crime with terrorism and Challenges to internal security through communication networks,

What’s the ongoing story: From coordinated drone missions (or drone swarming) and real-time battlefield monitoring to combat simulations for troop training, information warfare, and data-backed decision-making — the Indian Army is learnt to have drawn up a detailed roadmap identifying key areas where it plans to deploy Artificial Intelligence (AI), Machine Learning (ML), and Big Data Analytics by 2026–27.

Key Points to Ponder:

• What are the key areas where Indian Army plans to deploy Artificial Intelligence (AI), Machine Learning (ML), and Big Data Analytics by 2026–27?

• What are the immediate priorities?

• Why the use of AI which has been discussed by the Army in the past, it is now being fast-tracked?

• What you know about AI task force under the Directorate General of Information Systems (DGIS)?

• How satellites, including the Cartosat and RISAT, have played a big role in helping defence forces?

• How lessons from Operation Sindoor have shaped the Army’s AI roadmap, especially in drone swarming and smart war room capabilities?

• Compare India’s efforts in AI-enabled warfare with global trends.

Key Takeaways:

• According to sources, one of the immediate priorities is to improve battlefield awareness using AI tools that can process large volumes of information quickly. These include text summarisers built on Large Language Models (LLMs) to scan and condense long reports, AI-powered chatbots, voice-to-text systems, facial recognition, and tools that can detect unusual patterns or threats.

• Sources said the roadmap — which sets specific tactical, operational and strategic goals to be met by 2026–27 — includes deploying AI across a wide range of functions, including decision support systems that can generate counter-intelligence, enhance surveillance, manage logistics and supply chains, analyse Open Source Intelligence (OSINT) and social media, map adversary capabilities, and run wargaming simulations.

• These technologies will also be used for better positioning and targeting of equipment, predictive maintenance, and AI-based navigation in environments where GPS access is denied. Decision support systems will further assist in operational planning and threat detection.

• To support long-term integration, AI features will be embedded in the General Staff Qualitative Requirements — the technical specifications for all new equipment being procured. The Army also plans to explore retrofitting select AI capabilities into legacy equipment, sources said.

Do You Know:

• AI will also be used to analyse feeds from drones, satellites, aircraft and ground sensors, and fuse this data in real time to support faster, more informed decision-making.

• Although the use of AI has been discussed by the Army in the past, it is now being fast-tracked, in the wake of lessons learnt from Operation Sindoor — the Army’s cross-border operation in May targeting terror infrastructure in Pakistan and Pakistan-occupied Kashmir.

• As part of this push, an AI task force under the Directorate General of Information Systems (DGIS), with representatives from other Army directorates, will soon be set up to oversee the implementation of niche technologies across the force.

• An AI lab is being set up at DGIS to develop and test models, which will also be integrated with AI applications being developed by the Navy and the Air Force. Additionally, the Army is pushing for greater collaboration with industry and academia to advance research in this space.

Other Important Articles Covering the same topic:

📍To boost surveillance, Govt taps global firms for high-resolution satellite imagery

Inking of India-UK trade pact, ties with Maldives focus of PM visit this week

Syllabus:

Preliminary Examination: Current events of national and international importance

Mains Examination: General Studies II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

What’s the ongoing story: Prime Minister Narendra Modi will travel to the United Kingdom and the Maldives from July 23 to 26, the government said on Sunday. While India and the UK are likely to formally sign the Free Trade Agreement (FTA) during the visit, Modi will be the guest of honour at the Maldives’ Independence Day celebrations.

Key Points to Ponder:

• India-UK FTA—know key features and objectives

• What you understand by Free Trade Agreements (FTAs)?

• Know the types of Trade Agreements.

• Why the Free Trade Agreement (FTA) matter to India?

• How India-UK Free Trade Agreement will benefit India and UK?

• What are the key goods included in India-UK Free Trade Agreement?

• What do you understand by the ‘Rules of origin’?

• What led to the deal, and what issues emerged during negotiations?

• What about UK’s carbon tax?

• How PM Modi’s participation as Guest of Honour in Maldives’ Independence Day serves India’s ‘Neighbourhood First’ foreign policy framework.

• What is the role of India’s ‘Vision MAHASAGAR’ in enhancing maritime security and economic collaboration with Maldives?

• How the visit can mend earlier diplomatic strains and advance the India Maldives Comprehensive Economic & Maritime Security Partnership?

• Compare India’s recent strategic engagements with the UK and Maldives within the contexts of post Brexit diplomacy and Indo Pacific geopolitics.

Key Takeaways:

• “At the invitation of the Prime Minister of the United Kingdom Keir Starmer, Prime Minister Narendra Modi will pay an official visit to the United Kingdom from July 23-24, 2025,” the Ministry of External Affairs (MEA) said in a statement.

• “During the visit, Prime Minister Modi will hold wide ranging discussions with Prime Minister Starmer on the entire gamut of India-UK bilateral relations. They will also exchange views on issues of regional and global importance. Prime Minister is also expected to call on His Majesty King Charles III. During the visit, the two sides will also review the progress of the Comprehensive Strategic Partnership (CSP) with a specific focus on trade and economy, technology and innovation, defence and security, climate, health, education and people-to-people ties,” it said.

Do You Know:

• This will be Modi’s fourth visit to the UK, but the first since Starmer came to power after he led the Labour landslide to end 14 years of Conservative rule in July last year. Since then, the two leaders have met a couple of times on the sidelines of multilateral meetings — at the G20 Summit in Rio de Janeiro, Brazil, in November last year, and the G7 leaders’ summit in Kananaskis in Canada in June this year.

• While the India-UK Free Trade Agreement was finalised in May this year, the pact is expected to be signed during Modi’s visit. The FTA, finalised after three years of negotiations, is expected to benefit 99 per cent Indian exports from tariff and will make it easier for British firms to export whiskey, cars and other products to India besides boosting the overall trade basket.

• In the second leg of his visit, Modi will go to Maldives for the first time since President Mohamed Muizzu came to power in November 2023. “Prime Minister Modi will be the ‘Guest of Honour’ at the celebrations of the 60th anniversary of the Independence of Maldives on July 26,” the MEA said.

• This will mark a turnaround in the relationship which started on a confrontational note. Earlier, Muizzu had asked India to withdraw Indian military personnel associated with the aviation platforms — two choppers and an aircraft — and they had to be replaced by technical personnel. Muizzu visited India in October last year, and the two sides moved forward to mend ties. Modi’s visit will be aimed at taking this forward.

• It said the visit reflects the importance India attaches to its maritime neighbour, Maldives, which continues to hold a special place in India’s ‘Neighbourhood First’ policy and Vision MAHASAGAR. It will provide an opportunity for both sides to further deepen and strengthen the close bilateral relationship, it said.

Other Important Articles Covering the same topic:

📍Deal’s done: India-UK Free Trade

Previous year UPSC Main Question Covering similar theme:

📍How would the recent phenomena of protectionism and currency manipulations in world trade affect macroeconomic stability of India? (2018)

THE CITY

Slipping grades, social withdrawal, aggression: How screens affect children

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies I: Effects of globalization on Indian society.

What’s the ongoing story: The entry of Artificial Intelligence (AI) hasn’t helped matters. “AI has impacted students, leading to more smartphone usage,” says Pavan Duggal, a leading cyber law expert.

Key Points to Ponder:

• What are the early warning signs of screen addiction in adolescents, as described in the article?

• How prolonged screen time and negative health outcomes like spinal deformities, sleep loss, and mental health problems among youth are corelated?

• How effective are the judicial interventions—like the Delhi High Court directive—on regulating smartphone use in schools?

• How AI is exacerbating screen addiction?

• What should be the digital policy measures to curb its misuse by young adults?

• What are the role of mental health professionals and educational institutions in addressing screen addiction among teens?

• Compare how other countries handle screen-time regulation for schoolchildren?

• How parental awareness and family routines can mitigate negative impacts of excessive screen use on children?

Key Takeaways:

• According to Anjali Kharbanda, Principal, N K Bargodia Public School in Dwarka, it usually starts with slipping grades. “The children then withdraw from social spaces, there is a loss of interest in participating in school activities, and their behaviour changes.” However, the drop in grades, she explains, is rarely the problem — more often, it’s a symptom.

• According to an international study published in June, in the medical Journal JAMA, researchers analysed screen use among 4,285 children from 10 years of age in the United States; they screened them for compulsive use and distress when denied devices.

• The study found that by the age of 14, those with high addictive behaviour were two or three times more likely to have suicidal thoughts. It also found a direct link between “high and increasing addictive screen use trajectories” with “suicidal behaviours and ideation and worse mental health”.

• Schools, meanwhile, are grappling with how to handle screens in classrooms. “Banning phones makes no sense at all,” says Dr Ameeta Mulla Wattal, DLF Foundation schools chairperson and former principal of Springdales School. “Many use it as a teaching and learning device. Before Covid, there were very stringent measures in place in schools. Phones were confiscated.”
But she acknowledges the dangers. She recalls an incident from Springdales a few years ago, of a teenage girl being bullied.

Do You Know:

• In February, the Delhi High Court, responding to a PIL, issued a set of directives for managing smartphone use in schools. It stopped short of imposing a ban, instead urging institutions to strike a balance between regulation and responsible access.

• Students, the court said, should not be barred from carrying smartphones, but schools must regulate their use — encouraging safe deposit systems at entry and prohibiting devices from disrupting classrooms, school discipline, or being used in common areas and vehicles.

• Following this, the Directorate of Education in April issued a circular to all government school heads, directing them to begin drafting institution-level smartphone usage policies. The circular acknowledged that no formal provision for managing smartphones existed in government schools.

• A vice-principal of a Delhi government school, who is drafting the policy in her school, says her staff agreed to allow only basic keypad phones — enough for emergencies. “There have been several cases of misuse,” the vice-principal adds.

• In 2022, twins Samaya and Samhara Chauhan, who study in Class XII at Pushp Vihar’s Amity International School, launched an anti-bullying initiative after seeing how mental health and cyberbullying are major concerns in their peer groups. “We realised the intensity of the issue and formed a team of four for an anti-bullying project,” says Samaya.

Other Important Articles Covering the same topic:

📍Australia passes social media ban for children under 16

Previous year UPSC Main Question Covering similar theme:

📍Child cuddling is now being replaced by mobile phones. Discuss its impact on the socialization of children. (2023)

THE IDEAS PAGE

The soil of a nation

Syllabus:

Preliminary Examination: Economic and Social Development

Mains Examination: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

What’s the ongoing story: Ashok Gulati, Leonardus Vergutz and Ritika Juneja writes: Only when soils receive the nutrients do they produce food that nourishes rather than merely fills stomachs. This is no longer just an agricultural issue; it’s a public health imperative.

Key Points to Ponder:

• What is the health of the soil?

• What is ‘Soil Health Card’ scheme?

• Soil health and its relationship with food security and human health-connect the dots

• How tailored soil nutrition strategies can help India move from food security to nutrient security?

• Know the role of the Soil Health Card Scheme in transforming India’s agricultural and health landscape.

• How a paradigm shift in fertiliser management can support sustainable agriculture, soil health, and ecosystem resilience in the context of the Green Revolution’s legacy.

• Compare Indian soil-health challenges with global initiatives in crop and human nutrition.

Key Takeaways:
Ashok Gulati, Leonardus Vergutz and Ritika Juneja writes:

• In 2024-25 (FY25), India exported 20.2 million tonnes (MT) of rice in a global market of 61 MT. The country also runs the world’s largest food distribution programme, the PM-Garib Kalyan Yojana (PMGKY), which provides 5 kg of free rice or wheat per person per month to more than 800 million people. Yet, the Food Corporation of India holds about 57 MT of rice — the highest stock in 20 years and nearly four times the buffer norm of 13.54 million tonnes as of July 1, 2025.

• Poverty, too, has receded significantly. The extreme poverty head count (those earning less than $3/day at 2021 PPP) dropped from 27.1 per cent in 2011 to just 5.3 per cent in 2022.

• The National Family Health Survey (NFHS 5) (2019–21) reports that 35.5 per cent of children under five years of age are stunted, 32.1 per cent are underweight, and 19.3 per cent are wasted. Food security in India has evolved beyond merely ensuring caloric sufficiency; it must now encompass nutritional security as well.

• One critical, and often overlooked, factor here is the health of soils. Soil micronutrient deficiencies not only impair agricultural productivity but also degrade the nutritional quality of crops.

• Crops grown on nutrient-deficient soils often mirror those deficiencies, leading to a silent but pervasive form of malnutrition in humans. Take zinc. Its deficiency in soils translates into low zinc content in cereals like wheat and rice, which in turn is linked to childhood stunting — a condition that affects the physical development, long-term cognitive health, as well as the professional life of a person.

• Importantly, SOC is a critical parameter defining the physical, chemical, and biological properties of soil — these govern its holding capacity and nutrient use efficiency. There is also a debate as to how much SOC is considered sufficient.

Do You Know:
Ashok Gulati, Leonardus Vergutz and Ritika Juneja writes:

• As per the Indian Institute of Soil Science (IISC), SOC in the range of 0.50- 0.75 per cent is adequate. But the World Food Laureate, Rattan Lal, who has worked on soil health throughout his career, prescribes that the carbon content in soils should be at least 1.5 to 2 per cent.

• Our soils also suffer from a deficiency of sulphur, as well as micronutrients like iron, zinc and boron. These deficiencies range from moderate to severe. It won’t be an exaggeration to say that many parcels of Indian soils need to be immediately taken to an intensive care unit (ICU) to restore them to normal health so that they can produce nutritious food on a sustainable basis.

• Recognising the urgency of this challenge, the Indian Council for Research on International Economic Relations (ICRIER) and OCP Nutricrops have committed to collaborating to improve soil health in India and beyond.

• OCP Nutricrops brings cutting-edge expertise in soil nutrition and fertiliser solutions aimed at addressing global challenges in sustainable food production. The collaboration aims to develop, implement, and scale region-specific, data-driven soil nutrition solutions that enhance crop productivity while improving their nutritional profile.

Other Important Articles Covering the same topic:

📍All is not well with soil

Previous year UPSC Main Question Covering similar theme:

📍How far is the Integrated Farming System (IFS) helpful in sustaining agricultural production? (2019)

ECONOMY

Erratic rain, high base drags Apr-Jun power use in 8 out of 10 top consuming states

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

What’s the ongoing story: Eight of India’s ten highest power-consuming states saw a year-on-year drop in electricity use in the first quarter of financial year 2025-26 (FY26), on account of unseasonal rain in May and a high base from last year. 

Key Points to Ponder:

• What are the impact of erratic rainfall on India’s seasonal electricity consumption?

• What is the concept of “high base drag” in power demand analysis?

• ‘The decline in hydropower generation in FY24 (16.3%)’-what are the contributing meteorological and policy factors?

• How climate variability, including El Niño and Rossby-gravity waves, is influencing electricity demand and grid stability in India?

• Know the resilience of India’s power mix in coping with monsoon-related fluctuations in hydropower availability.

• Do you think that improved water management (irrigation scheduling, storage) can improve energy efficiency and sector performance?

Key Takeaways:

• Overall, power consumption across the country fell 1.4 per cent year-on-year to 451.8 billion units (BU) between April and June, according to data from the Central Electricity Authority (CEA).

• Maharashtra, India’s biggest power guzzler, saw a marginal dip in electricity use to 53 BU in Q1 FY26, from 53.4 BU a year ago. Uttar Pradesh logged a sharper 5.6 per cent fall to 46.1 BU. Only Punjab and Gujarat bucked the trend, inching up by 2.2 per cent and 0.4 per
cent to 20.9 BU and 41.9 BU, respectively.

• Consumption fell 3 per cent in Tamil Nadu, 2.9 per cent in Karnataka, 2.4 per cent in Rajasthan, 1.4 per cent in West Bengal, 1 per cent in Madhya Pradesh, and 0.2 per cent in Andhra Pradesh. These ten states account for 70 per cent of India’s electricity consumption.

• Barring Maharashtra (flat), Andhra Pradesh (-2 per cent), and Karnataka (1 per cent), most of these states had recorded strong growth in Q1 FY25. Uttar Pradesh had grown 24 per cent, Rajasthan 21 per cent, and Madhya Pradesh 14 per cent, while national power consumption had risen 11 per cent. Notably, power use in Punjab and Gujarat registered positive growth this year despite having expanded by 25 per cent and 15 per cent, respectively, in Q1 FY25.

• In addition to last year’s high base, unseasonal rain also weighed on power demand between April and June. While consumption rose 2.6 per cent y-o-y in April, it fell 4.7 per cent in May amid unexpected showers in north India, and declined 1.8 per cent in June due to excess rainfall. The southwest monsoon had covered the entire country by June 29 this year, against the normal date of July 8.

• Still, despite the dip in Q1 FY26, India’s power consumption has grown at a compound annual growth rate (CAGR) of 7 per cent since Q1 FY22. Among the top ten states, Uttar Pradesh led with 9.2 per cent, followed by West Bengal (8.8 per cent), Rajasthan (8.3 per cent), Gujarat (8.2 per cent), and Punjab (8.1 per cent). At the other end, Andhra Pradesh (3.6 per cent), Tamil Nadu (4.9 per cent), and Maharashtra (5 per cent) saw the slowest growth.

Do You Know:

• According to the PIB, Over the past decade, India’s power sector has seen robust expansion driven by rising demand, infrastructure development, and strong policy support for both conventional and renewable energy sources. Electricity generation has increased from 1,168 billion units (BU) in 2015–16 to an estimated 1,824 BU in 2024–25. Similarly, total installed capacity has grown from 305 gigawatts (GW) in 2015–16 to a projected 475 GW in 2024–25.

• India’s power sector is among the most diversified in the world, with generation from conventional sources like coal, gas, hydro, and nuclear, as well as renewable sources such as solar, wind, biomass, and small hydro. With rising electricity demand, India continues to expand its energy capacity to support economic growth and sustainability goals.

• Over the past eleven years, India has made remarkable progress in the renewable energy sector. In line with the commitment made at COP26, the Ministry of New & Renewable Energy (MNRE) is working tirelessly to achieve 500 GW of installed electricity capacity from non-fossil fuel sources by 2030. As of June 2025, the country has already achieved 235.7 GW from non-fossil fuel sources, comprising 226.9 GW of renewable energy and 8.8 GW of nuclear power, accounting for 49% of the total installed power generation capacity of 476 GW.

Other Important Articles Covering the same topic:

📍India’s Energy Landscape

EXPLAINED

Why 78% coal plants won’t need to add anti-pollution devices

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies III: Conservation, environmental pollution and degradation, environmental impact assessment

What’s the ongoing story: In 2015, the Environment Ministry notified the first-ever emission norms for control of SO2 and other harmful substances from coal-based thermal plants. These were required to install FGD devices by December 2017.

Key Points to Ponder:

• Why are SO2 emissions from thermal plants an issue?

• Sulphur Dioxide (SO₂) emissions are primarily associated with which industries?

• According to India’s environmental regulations, SO₂ emission limits are set under which frameworks?

• What has the government done to address the issue over the years

• What is behind the latest change in norms?

• Why have experts criticised the change in norms?

• What are the environmental and health impacts of sulphur dioxide emissions in India, with particular reference to coal-based thermal power generation?

• How does Flue Gas Desulphurization (FGD) technology help in reducing SO₂ emissions?

Key Takeaways:

• The Environment Ministry on July 11 exempted the majority of India’s coal-based thermal plants from installing systems that are designed
to remove sulphur dioxide (SO2) emissions, a key contributor to air pollution. Known as flue gas desulphurisation (FGD) devices, these systems cut SO2 from flue gas, which is a residue from thermal plants.

• Once released into the atmosphere, SO2 usually reacts with ammonia (NH3) to produce ammonium sulfate, which is responsible for roughly one-third of India’s fine particulate matter (PM2.5) pollution, according to recent research by the Centre for Research on Energy and Clean Air (CREA). PM2.5 is injurious to human health as it can lead to chronic diseases such as asthma, heart attack, bronchitis, and other respiratory problems.

• Direct exposure to high levels of SO2 can irritate the eyes, throat, and lungs. Long-term exposure can result in increased risk of heart attacks, strokes, and premature death, according to CREA.

• One of the biggest sources of SO2 emissions in India is the power sector, especially the coal-based thermal plants. The CREA research found the SO2 levels were higher in 2023 compared to 2019, with a notable increase in regions dominated by coal-based thermal plants. This highlighted “the influence of power plant emissions on air quality”, the research said.

Do You Know:

• The July 11 order said that plants in Category A, which are located within 10 kms of the Delhi-National Capital Region (NCR) or cities with a million plus population have to continue complying with the norms by the end of 2027.

• For category B plants, located within 10-km of critically polluted areas or cities not in compliance with national ambient air quality standards will apply on a case to case basis, based on recommendations of an expert appraisal committee. For Category C plants, located outside of these two areas, will be completely exempted from meeting the SO2 norms. However, they will have to comply with stack height criteria.

• The ministry notification said that thermal power plants due to retire before December 2030 shall not be required to meet the SO2 emission norms, provided they submit an undertaking for exemption. A compensation at the rate of Rs 0.40 per unit of electricity generated would be levied if they continue to operate beyond the 2030 timeline.

• In a report, the National Institute of Advanced Studies submitted to the high-powered committee that Indian coal, used to generate 92% electricity produced by thermal plants, has a low average sulphur content. In fact, it said that FGD installation in all coal plants by 2030 will increase auxiliary power consumption and add more long-lived carbon dioxide emissions, while removing short-lived sulphur dioxide emissions.

Other Important Articles Covering the same topic:

📍Environment Ministry defends revised framework for thermal plants to meet SO2 emission norms

Relief from food inflation

Syllabus:

Preliminary Examination: Economic and Social Development

Mains Examination: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

What’s the ongoing story: At 2.1% year-on-year, India’s consumer price index inflation in June was below the 2.7% of the United States and 3.6% of the United Kingdom. That gap was wider in food, with the annual price increases at 3% for the US, 4.5% for the UK and minus 1.1% for India.

Key Points to Ponder:

• What is Inflation?

• Know the Types of Inflation like Moderate Inflation, Galloping Inflation, Hyper-Inflation, Stagflation, Deflation, Core Inflation etc.

• What are the causes of Inflation in the present situation

• How Inflation is Measured in India?

• What is the Long term, Medium Term and Short-term impact of Inflation?

• New Standard for Measuring Inflation in India and Old Standard for Measuring Inflation-Key Differences

• How monsoon variability influences India’s food inflation trajectory?

• How do government import policy interventions complement domestic supply-side measures in managing inflation?

• How effective is RBI’s monetary policy in containing food inflation, especially when inflation stays below the 4% target?

• What is the significance of buffer stock management and Public Distribution System (PDS) mechanisms in stabilizing food prices?

Key Takeaways:

• Both overall retail and consumer food inflation falling to their lowest since January 2019 is a huge relief, especially for the Reserve Bank of India. The country’s central bank was, at least till six months ago, struggling to rein in inflation and, hence, unable to cut its policy interest rates. Much of it was courtesy of food, where India experienced sustained high inflation from roughly mid-2023 to the end of 2024.

• That ended with a surplus monsoon in 2024, translating into bumper crops. As the market arrivals of these crops – kharif (cultivated during the monsoon season) plus rabi (winter-spring) – picked up, food inflationary pressures eased from early 2025 and slipped into negative in June.

• The effects of favourable soil moisture and replenished groundwater as well as reservoir levels from abundant rainfall – 7.6% above the historical average or “normal” for the 2024 monsoon season (June-September) – were best seen in wheat.

• Wheat stocks in government godowns last year on July 1, at 282.61 lakh tonnes (lt), were at their lowest for this date since 2008 and just above the minimum buffer of 275.80 lt.

Do You Know:

• Food inflation in India refers to the rate at which the prices of food items—such as cereals, pulses, vegetables, fruits, milk products, and meats—increase over a period of time. It is usually expressed as a percentage change compared to a previous period (typically month-over-month or year-over-year) and is an important indicator of how the cost of living for households, especially those in lower and middle-income groups, is evolving.

• Food inflation specifically tracks changes in the prices of food and beverages. Unlike general inflation—which covers a broad basket of goods and services—food inflation focuses solely on the cost of food items.

• In India, food inflation is commonly measured using price indices, the most notable being the Consumer Price Index (CPI) for food. This index aggregates the price movements of a diverse basket of food items. The percentage change in this index over a specified period is what we refer to as the food inflation rate.

• The CPI has six main components, each with differing weights and many more sub-components within them. The main components are—Food and beverages, Pan, tobacco and intoxicants, Clothing and footwear, Housing, Fuel and light and Miscellaneous (services such as education, health care etc.)

• Among these, food articles currently weigh 45% of the total index. The second-biggest component is that of miscellaneous services. Within the food category, cereal prices are the biggest factor — they account for 9.67% of the total CPI. This means that a spike in prices of food articles like cereals, vegetables, milk and pulses tends to have the biggest impact in raising consumer inflation. And the reason why food articles have been given such a high weightage is that most Indian consumers tend to spend a considerable portion of their income towards meeting their food demand.

Other Important Articles Covering the same topic:

📍What latest inflation data say

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