© IE Online Media Services Pvt Ltd
Tags:
Journalism of Courage
Important topics and their relevance in UPSC CSE exam for February 11, 2025. If you missed the February 10, 2025 UPSC CSE exam key from the Indian Express, read it here
FRONT PAGE
Trump threatens 25% tariffs on steel, aluminium, raises dumping concerns
Syllabus:
Preliminary Examination: Current events of national and international importance.
Main Examination: General Studies II: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.
What’s the ongoing story: As US President Donald Trump issued a fresh threat of imposing a 25 per cent tariff on steel and aluminium, Indian companies feared a downward pressure in domestic steel prices due to the risk of losing out on the largest steel consumer market.
Key Points to Ponder:
• Know the terms-Tariffs, Non-Tariffs, dumping, Trade diversion and Protectionism
• Why Tariffs are imposed?
• What will be the impact of the U.S. steel and aluminium tariffs on global trade dynamics?
• How does such protectionist policy affect developing economies like India?
• ‘Trade protectionism has seen a resurgence in global economic policies’-discuss
• Discuss the merits and demerits of protectionist measures such as tariffs and import duties.
Key Takeaways:
• There are concerns over dumping with steel imports already on the rise due to trade diversion and protectionist measures that began when Trump imposed 25 per cent import duty on steel products and 10 per cent on certain aluminium products during his first term.
• Fearing a further surge, the Ministry of Steel in India had last year asked the Union Ministry of Commerce to impose a 25 per cent duty on steel products, citing a 80 per cent surge in steel imports from China to 1.61 million tonnes between January-July 2024.
• Exporters, however, said there are chances of an exception for India as both the countries agreed to a trade resolution after India had in 2019 retaliated with tariffs on 28 US items in response to Trump’s tariffs.
• All eyes are on once again on Modi’s February 12-13 visit to the US.
• Moody’s Ratings on Monday said Indian steel producers will face increased challenges in exporting their products following the US decision to impose an additional 25 per cent tariff on all steel and aluminium import.
• Over the past 12 months, high steel imports have already dampened prices and earnings of steel producers in India, said Hui Ting Sim, assistant vice president at Moody’s Ratings.
• “The US tariffs on steel will increase competition and exacerbate oversupply at other steel producing markets. Indian steel producers will face increased challenges in exporting their products,” Hui Ting Sim said.
Do You Know:
• According to Investopedia, Protectionism refers to government policies that restrict international trade to help domestic industries. Protectionist policies are usually implemented with the goal of improving economic activity within a domestic economy but can also be implemented for safety or quality concerns.
—Protectionist policies are typically focused on imports but may also involve other aspects of international trade, such as product standards and government subsidies.
—Import tariffs are one of the top tools that a government uses when seeking to enact protectionist policies.
• Trade diversion is an economic concept in international trade where a free trade agreement or customs union shifts trade from a more efficient exporter to a less efficient one. This occurs because trading within the agreement incurs lower tariffs, making goods more affordable compared to importing from countries outside the agreement, which may offer lower-cost goods but face higher tariffs.
• Tariffs are a type of trade barrier that makes imported products more expensive than domestic ones. Tariffs typically come in the form of taxes or duties levied on importers, and they’re eventually passed on to consumers. They’re commonly used in international trade as a protectionist measure.
• According to Investopedia, a trade war is an economic dispute between two countries. It can occur when one country retaliates against another’s perceived unfair trading practices with restrictions, such as tariffs, on imports.
—Trade wars are usually considered a side effect of protectionism.
• According to Investopedia, dumping is when a country or company exports a product at a lower price than its domestic sale price. In the context of international trade, dumping is often considered an unfair pricing strategy. Because dumping typically involves substantial export volumes of a product, it often endangers the financial viability of the product’s manufacturer or producer in the importing nation.
— An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value.
Other Important Articles Covering the same topic:
📍Trump says he is considering tariff exemptions on Australian steel and aluminum
UPSC Previous Year Prelims Question Covering similar theme:
1. With reference to the international trade of India at present, which of the following statements is/are correct? (2020)
(1) India’s merchandise exports are less than its merchandise imports.
(2) India’s imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years.
(3) India’s exports of services are more than its imports of services.
(4) India suffers from an overall trade/current account deficit.
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 2 and 4 only
(c) 3 only
(d) 1, 3 and 4 only
PM visit: Paris AI meet, US trade, tech ties
Syllabus:
Preliminary Examination: Current events of national and international importance.
Main Examination: General Studies II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
What’s the ongoing story: “I believe that France cannot continue to be France if it leaves its role in the world by the wayside”, French President Emmanuel Macron wrote in his memoir, Revolution, in 2017.
Key Points to Ponder:
• India and France have a long-standing strategic partnership that spans defence, space, and energy cooperation—Critically examine
• Discuss the significance of Indo-French cooperation in the Indo-Pacific region.
• The Paris AI Action Summit 2025 focused on ethical AI governance and regulation—Analyse the importance of AI governance at the global level and India’s role in shaping international AI policies.
• Evaluate the role of India-France cooperation in the field of renewable energy. How does this partnership contribute to India’s clean energy goals and global climate commitments?
• Examine the importance of civil nuclear cooperation between India and France. What are the strategic and economic implications of this partnership?
• Discuss the impact of Indo-French defence collaboration, with a focus on technology transfer and self-reliance in defence manufacturing.
• How does India’s engagement with France in artificial intelligence and emerging technologies align with its Digital India and Make in India initiatives?
Key Takeaways:
• As chair of the Artificial Intelligence (AI) Action Summit in Paris on February 11, the President would be trying to fulfil this obligation. And he has invited Prime Minister Narendra Modi to co-chair the Summit, offering India an important part in the effort to make and shape the rules for technologies on the next frontier.
• Back in 1998, speaking in New Delhi’s Vigyan Bhawan, President Jacques Chirac first proposed the idea of “a partnership for the 21st century” with India, “a global partnership grounded in our complementarities and our common interests”. The two countries have travelled a significant distance on that high road since then
Do You Know:
• The invitation to India to co-chair the AI Summit is being seen as a recognition of New Delhi’s approach to AI, and its expanding role in the domain of new and emerging technologies. While China is a global leader in this breakthrough technology, the choice made by Paris signals the importance it attaches to shared values and convergences.
• India’s Strategic Partnership with France is its oldest, and the two countries have stood together in addressing a range of global issues.
• In 2015, they launched the International Solar Alliance on the sidelines of the Paris climate conference, and they are co-chairs of the Coalition for Disaster Resilient Infrastructure (CDRI). Together, they have made significant contributions to writing the code for a green and sustainable planet; they are now collaborating to mark the contours of development in the digital world.
• The Summit, which is likely to be attended by United States Vice President J D Vance, Chinese Vice Premier Zhang Guoqing, European Commission President Ursula von der Leyen, and German Chancellor Olaf Scholz, will provide India with a platform to contribute towards the development of AI in an inclusive, responsible, and equitable manner, and to address associated risks and issues of ethics, governance, and accessibility.
• The Paris Summit will seek to build on the two summits held in the United Kingdom in November 2023 and South Korea in May 2024.
• The Bletchley Park Declaration signed at the AI Safety Summit, which was attended by 28 countries, affirmed that AI should be designed, developed, deployed, and used in a manner that is safe, human-centric, trustworthy, and responsible.
• The Seoul Summit, co-hosted by the UK, was attended by 27 nations. The Seoul Declaration reaffirmed their commitment to international cooperation on AI, and to addressing the challenges and opportunities presented by the new technology. The Seoul Summit also proposed a network of AI Safety Institutes.
• India will be putting forward the example of the IndiaAI Mission. The Rs 10,371 crore program of “Making AI in India and Making AI for India” aims to democratise AI innovation and ensure that its benefits are equitably distributed to all citizens.
• The Prime Minister’s visit will be an occasion to further deepen the India-France strategic partnership. The PM shares a warm personal equation with President Macron, and the two leaders met thrice in 2024, with the President attending the Republic Day celebrations as Chief Guest.
Other Important Articles Covering the same topic:
UPSC Prelims Practice Question Covering similar theme:
2. Which of the following areas is NOT a key focus of Indo-French bilateral relations?
(a) Defence cooperation
(b) Space technology
(c) Renewable energy
(d) Immigration policy reform
For second year, no death penalty passes SC test
Syllabus:
Preliminary Examination: Indian Polity and Governance
Mains Examination: General Studies II: Structure, organization and functioning of the Executive and the Judiciary—Ministries and Departments of the Government; pressure groups and formal/informal associations and their role in the Polity
What’s the ongoing story: REFLECTING A divergence in decision-making on death penalty at different levels in the judiciary, the Supreme Court — for the second consecutive year — did not confirm a single death sentence in 2024 while trial courts awarded 139 such verdicts, according to a report by Project 39A, a criminal justice programme at the National Law University Delhi.
Key Points to Ponder:
• What is Project 39A?
• Death Penalty in India: Annual Statistics Report 2024-Know the key highlights
• What Article 39A of the Indian Constitution says?
• How Article 39A is different from Article 22 of the Indian Constitution?
• What else the annual statistics report ‘death penalty in India’ says on Capital Punishment?
• What is Capital Punishment?
• How Countries retained death penalty or Capital Punishment?
• Know the Important Supreme Court Judgements Related To Capital Punishments in detail
• What was the judgment delivered by the Supreme Court recently in Manoj & others v. State of MP?
• What was the Supreme Court of India’s verdict in Jagmohan Singh v state of Uttar Pradesh in 1972?
• Bachan Singh v state of Punjab in 1980 and ‘rarest of rare cases’-What Supreme Court said about rarest of rare cases?
• Machhi Singh v state of Punjab in 1983 and broadening the categories of rarest of the rare cases by Supreme Court of India-Know in detail
• Kehar Singh v union of India,1989 and pardoning power of executive is subject to judicial review-Know in detail
• What are the arguments for Capital Punishment in India?
• What are the arguments against Capital Punishment in India?
• “Capital Punishment is a form of retribution”- What do you understand by this statement?
• Objective of justice should be reformative and not retributive- What do you understand by this statement?
• What Law commission of India says about death penalty?
Key Takeaways:
• The SC heard six appeals in 2024 — it commuted five death sentences to life imprisonment while one was acquitted. For second year, no death penalty passes SC test while one was acquitted.
• “In a continuation of past year trends since 2021, the Court relied on reports pertaining to the accused’s life history, jail conduct and mental health evaluations in its death penalty decisions,” the report stated.
• ‘Death Penalty in India: Annual Statistics Report 2024’, accessed by The Indian Express, states that at the end of 2024, there were 564 death row prisoners in jails across India, the highest number since 2000.
• In 2024, of the 139 death sentences awarded by trial courts, 87 (62%) were imposed in murder cases and 35 (25%) in cases of murder involving sexual offences. This is a reversal from the previous year, when more death sentences were imposed in cases of murder involving sexual offences (59) than in simple murder cases (40).
• In 2023, the trial courts had awarded 122 death sentences.
Do You Know:
• Under Section 366 of the Criminal Procedure Code, 1973, and Section 407 of the Bharatiya Nyaya Suraksha Sanhita, 2023, death sentence proceedings must be forwarded to the High Court for confirmation before they can be executed. In 2024, High Courts decided 87 cases whereas trial courts imposed 139 death penalties.
• High Courts confirmed the death sentences of 9 convicts, the highest since 2019 (26). Of the 9 confirmations, 5 were in cases of murder involving sexual offence, 3 in simple murder and one in a case of kidnapping with murder.
• In High Court cases as well, the report states that the “death penalty appeals were disposed of without seeking information about the accused including mitigation reports, jail conduct reports and psychiatric evaluations”. Aside from confirmations, the High Courts commuted the sentence of 79 convicts, acquitted 49, and sent the case of one convict back to the trial court in 2024.
Other Important Articles Covering the same topic:
📍An Expert Explains: Reforming death penalty
UPSC Prelims Practice Question Covering similar theme:
Which of the following judgments laid down the ‘rarest of rare’ doctrine for awarding the death penalty in India?
(a) Bachan Singh v. State of Punjab (1980)
(b) Maneka Gandhi v. Union of India (1978)
(c) Keshavananda Bharati v. State of Kerala (1973)
(d) Vishaka v. State of Rajasthan (1997)
GOVT & POLITICS
How can a convicted person return to legislature, asks SC
Syllabus:
Preliminary Examination: Indian Polity and Governance
Main Examination: General Studies II: Salient features of the Representation of People’s Act.
What’s the ongoing story: Stating that “criminalisation of politics is a very major issue”, the Supreme Court on Monday wondered how convicted politicians can return to the legislature after completing their sentence.
Key Points to Ponder:
• Discuss the constitutional and legal provisions governing the disqualification of convicted politicians in India.
• The Supreme Court has raised concerns about convicted politicians returning to Parliament—Critically analyse the legal, ethical, and democratic implications of this issue.
• Examine the role of the Representation of the People Act, 1951, in preventing criminals from entering politics. Should there be stricter disqualification criteria? Justify your answer.
• What are the limitations of existing laws in curbing the criminalisation of politics? Suggest reforms to make the electoral process more transparent and accountable.
• What role do political parties play in the criminalisation of politics?
• Voter awareness is a key factor in addressing the issue of convicted politicians returning to Parliament. Discuss strategies to improve voter literacy on electoral ethics and political accountability.
Key Takeaways:
• “Once he is convicted, and the conviction is upheld… how can people come back to Parliament and Legislature? That they have to answer,” Justice Dipankar Datta presiding over a two-judge bench said. He said “there is also an apparent conflict of interest” as these politicians “would be vetting the laws”.
• The bench also comprising Justice Manmohan was hearing a pending PIL by Advocate Ashwini Kumar Upadhyay seeking life ban on contesting polls for MPs and MLAs convicted of criminal offences.
• The plea also challenges Section 8 of ‘The Representation of The People Act, 1951’, which limits the period for which convicted politicians are barred from contesting elections to six years after serving the jail sentence and the issue of convicted persons being office-bearers of political parties.
• Hearing it in 2017, the SC directed setting up of 12 special courts in 10 states to try cases against MPs and MLAs. In 2023, it asked high courts to set up special benches to monitor trials in pending cases against MPs and MLAs.
• Monday, Senior Advocate Vijay Hansaria, who is amicus curiae in the case, told the bench that despite its directions from time to time, about 5,000 criminal cases pertaining to MPs/MLAs continue to remain pending.
• The bench of Justices Datta and Manmohan will continue to hear the pleas challenging provisions of ‘The Representation of The People Act’ after three weeks. The court gave the Centre and Election Commission time to file their affidavits in the matter and also called on Attorney General R Venkataramani to address it on the legal issues involved.
Do You Know:
S Y Quraishi writes in “Criminalisation of politics must be curbed”—
• Growing criminalisation has been a constant theme of Indian politics. According to the Association for Democratic Reforms (ADR), 233 MPs in the current Lok Sabha are facing criminal charges, up from 187 in 2014, 162 in 2009 and 128 in 2004.
• While seeking to add strength to the Election Commission to combat criminalisation is a welcome step, the Supreme Court remains sceptical about the legislature taking concrete steps to solve the problem. This scepticism is not unwarranted. Political parties in India have always been notoriously reluctant to introduce changes to combat criminalisation, and the excuses they have given for doing so have remained nearly unchanged since Independence.
• The legislature has been very slow in addressing this issue, and political parties remain extremely reluctant to change their ways, citing two major excuses. “Winnability” of candidates is the first reason. The logic of a candidate with criminal charges doing good for the people of a constituency is dubious at best. The winnability clause is an attempt by the party to absolve itself of all blame and put the onus of sending a criminally charged candidate to Parliament solely on the voter. This is unacceptable.
Other Important Articles Covering the same topic:
📍Criminalisation of politics: Why ADR has approached the ECI seeking action against political parties
UPSC Previous Year Prelims Question Covering similar theme:
Consider the following statements: (2021)
1. In India, there is no law restricting the candidates from contesting in one Lok Sabha election from three constituencies.
2. In the 1991 Lok Sabha Election, Shri Devi Lal contested from three Lok Sabha constituencies.
3. As per the existing rules, if a candidate contests in one Lok Sabha election from many constituencies, his/her party should bear the cost of bye-elections to the constituencies vacated by him/her winning in all the constituencies.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) 1 and 3
(d) 2 and 3
UPSC Previous Year mains Question Covering similar theme:
📍It is often said that ‘politics’ and ‘ethics’ do not go together. What is your opinion in this regard? Justify your answer with illustrations. (2013)
EXPRESS NETWORK
Doctors flag gut concerns over weight loss drugs
Syllabus:
Preliminary Examination: Current events of national and international importance.
Main Examination: General Studies II: Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.
What’s the ongoing story: In July last year, a 32-year-old businessman from Agra visited a hospital in Ahmedabad complaining of nausea and severe loss of appetite, saying he could even smell the food he had consumed a day before. Doctors advised the patient, weighing 105 kg, an endoscopy and found his gastrointestinal (GI) tract clogged with undigested food from 48 hours before.
Key Points to Ponder:
• What is Stomach paralysis or gastroparesis?
• Examine the public health risks associated with the unregulated sale and use of weight-loss drugs.
• Discuss the regulatory framework governing the pharmaceutical sector in India. How effective is it in curbing the sale of unauthorized drugs?
• Analyse the role of the Central Drugs Standard Control Organization (CDSCO) in ensuring drug safety in India.
• The rise of the grey market for pharmaceutical drugs poses serious challenges to public health—Suggest policy and legal measures to counter this issue.
• Compare India’s pharmaceutical drug regulation with that of developed countries like the USA and the European Union.
• The sale of unregulated drugs has increased with digital marketplaces and online pharmacies—How can India create a robust regulatory mechanism for e-pharmacies?
Key Takeaways:
• The craze for weight loss began with Ozempic, a diabetes drug by Novo Nordisk, whose active ingredient, semaglutide, was FDA-approved in 2017. Soon, doctors started prescribing it off-label for obesity as it reduces appetite, calorie intake, thereby supporting weight loss.
• As celebrities and influencers flaunted their dramatic transformations, the frenzy intensified with Eli Lilly’s Zepbound, FDA-approved for weight loss in November 2023. This came after the success of its diabetes drug, Mounjaro.
• “However, these drugs can become life-threatening if not used in consultation with an endocrinologist as everybody needs a different dosage and protocol,” says Dr Parag Shah of the Gujarat Endocrine Centre, who has been seeing many such cases.
• Tirzepatide, found in Mounjaro and Zepbound, mimics both GIP and GLP-1 hormones to activate insulin production. Semaglutide, found in Ozempic and Wegovy, mimics only GLP-1. Notably, the oral semaglutide Rybelsus is approved only for diabetes in India but is used off-label for weight loss.
Do You Know:
• “Stomach paralysis, medically known as gastroparesis, is a condition where the stomach muscles are weakened or unable to function properly, leading to delayed emptying of food into the small intestine,” said Dr Prakruti Shah, associate consultant, department of gastroenterology, Paras Hospital, Gurugram.
• It disrupts the normal digestive process and can result in symptoms including nausea, vomiting, bloating, early satiety, and abdominal discomfort, said Dr Avinash B, HOD and consultant, department of medical gastroenterology, Ramaiah Memorial Hospital.
• Gastroparesis can occur for several reasons. According to Dr Shah, one of the most common causes is damage to the vagus nerve, which controls food movement through the digestive tract. “This damage is often seen in individuals with diabetes, particularly if blood sugar levels have been poorly managed over time. Other potential causes include viral infections, certain medications that affect digestive muscle function, such as opioids or antidepressants, and underlying neurological conditions like Parkinson’s disease or multiple sclerosis. In some cases, however, the cause may be idiopathic, meaning no specific reason can be identified,” said Dr Shah.
Other Important Articles Covering the same topic:
📍All about stomach paralysis, and why diabetics are at a higher risk
UPSC Prelims Practice Question Covering similar theme:
Which government body in India is primarily responsible for controlling and regulating new drugs and clinical trials?
(a) Medical Council of India (MCI)
(b) Central Drugs Standard Control Organization (CDSCO)
(c) National Health Authority (NHA)
(d) Department of Pharmaceuticals
FIR in Assam, probe in Mumbai over Allahbadia’s ‘joke’; he issues apology
Syllabus:
Main Examination: General Studies IV: Ethics and Human Interface
What’s the ongoing story: Two days after the video clip featuring Allahbadia’s remarks drew considerable flak, the episode of the show, which was shot in November and was premiered last week, was removed from Youtube.
Key Points to Ponder:
• What sections of the law have police applied against Ranveer Allahbadia?
• What is the section of the Information Technology Act that Ranveer has allegedly violated?
• Who has been prosecuted for ‘obscenity’ before?
• What is obscenity?
• What do you mean by vulgarity?
• The rise of digital platforms has led to new challenges in content moderation and responsible speech. Discuss the role of self-regulation by content creators in ensuring ethical communication.
• Public figures and influencers have a major impact on social discourse. What ethical guidelines should be put in place to regulate their speech on digital platforms?
• In 1965, the landmark Ranjit Udeshi judgment of the Supreme Court adopted the Victorian-era Hicklin test- What is ‘Hicklin test’?
• In the Aveek Sarkar v. State of West Bengal, 2014, Supreme Court of India did away with the British Hicklin test and adopted the American Roth test-Why?
• What defines ‘contemporary community standards’?
• “Ranveer Allahbadia as a young public figure has more responsibilities towards society”- How far do you agree with this statement?
• What are the ethical issues associated with public figure?
• Social media outrage often leads to legal action against content creators. Examine the role of cancel culture in shaping digital discourse.
• Media trials and public outrage often affect judicial proceedings. Should there be stricter legal provisions to prevent media sensationalism in controversial cases? Discuss with examples.
Key Takeaways:
• The comment triggered a row after it went viral on social media on Sunday, following which the Assam Police registered an FIR against five people, including the duo on the panel.
• The Mumbai police also began a probe into the matter, following a written complaint filed by Mumbai lawyers on Monday who claimed obscene comments were made against parents, women, and their body parts.
• Samay Raina’s online show ‘India’s Got Latent,’ known for its dark humour, is at the centre of the controversy where content creators Ashish Chanchlani, Jaspreet Singh, Apoorva Mukhija, along with Youtuber-podcaster Ranveer Allahbadia, were invited as panelists. Notably, the comedy show has provoked uproar on social media earlier on multiple occasions.
• A clip of his joke caused a stir on social media on Sunday, with several prominent figures criticising Allahbadia and the other panelists.
• Moreover, Assam Chief Minister Himanta Biswa Sarma, following the uproar, took to social media to announce that an FIR in the matter had been filed. The FIR in Assam was registered on the basis of a complaint by Alok Boruah from Guwahati. Boruah complained that the remarks caused “serious harm to public decency”.
• The case was filed with the Guwahati Crime Branch under sections of the IT Act and Indecent Representation of Women (Prohibition) Act, 1986 as well as section of the BNS pertaining to insulting a woman’s modesty and “obscene acts”.
• Following two days of heavy backlash, the entire episode of Samay Raina’s show was removed from Youtube on Tuesday. Initially exclusive to members only, the episode is now unavailable in India following a government directive.
• The controversial segment was first edited out after Allahbadia had apologized for his remark on social media and also requested the show’s makers to take it down. However, YouTube has now removed the entire episode.
Do You Know:
• The Indecent Representation of Women (Prohibition) Act, 1986 is an Act of the Parliament of India which was enacted to prohibit indecent representation of women through film, web series, advertisement or in publications, writings, paintings, figures or in any other manner. If any OTT platforms presented women as a sex object or showing nudity and obscenity towards women in its shows, then it would be a punishable offence and this may lead to banning of the series or its OTT platform
• The right to freedom of speech and expression is not absolute. Article 19 of the Constitution of India, which guarantees the right also provides for reasonable restrictions on various grounds, including that of decency and morality. This means that free speech has to be balanced against the contemporary community standards of morality when it comes to penalising obscene acts or content.
Other Important Articles Covering the same topic:
📍Ranveer Allahbadia was crass, but he shouldn’t be banned
UPSC Prelims Practice Question Covering similar theme:
Which of the following cases is significant in the interpretation of free speech and reasonable restrictions in India?
(a) Shreya Singhal v. Union of India (2015)
(b) Vishaka v. State of Rajasthan (1997)
(c) Kesavananda Bharati v. State of Kerala (1973)
(d) Maneka Gandhi v. Union of India (1978)
THE EDITORIAL PAGE
Syllabus:
Preliminary Examination: Current events of national and international importance.
Main Examination: General Studies II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
What’s the ongoing story: Kurt Jäger Writes: This is not merely a transactional arrangement to improve market access, but the basis for a relationship grounded in trust, shared values and a vision for mutual growth
Key Points to Ponder:
• Map Work-Iceland, Liechtenstein, Norway and Switzerland
• Discuss the significance of the India-EFTA trade agreement in strengthening India’s economic diplomacy.
• How does India-EFTA trade agreement compare with other FTAs India has signed?
• What are the key provisions of the India-EFTA trade agreement?
• Evaluate the challenges India might face in implementing the India-EFTA trade agreement.
• The European Free Trade Association (EFTA) has strong financial and technological capabilities—How can India leverage this agreement to boost its domestic manufacturing and innovation ecosystem?
Key Takeaways:
• The economic ties between the four European Free Trade Association (EFTA) states (Iceland, Liechtenstein, Norway and Switzerland) and India hold immense potential.
• The EFTA countries may have small markets, but they are world leaders in advanced technologies and major foreign investors. EFTA industries excel in areas such as precision engineering, renewable energy, pharmaceuticals and financial services — sectors that align with India’s growth ambitions and innovation-driven economy. These strengths position EFTA as a valuable partner in supporting India’s technological advancement, sustainability efforts and investment landscape.
• The recently signed EFTA–India Trade and Economic Partnership Agreement (TEPA) opens the door to long-term cooperation. The launch of the EFTA desk in India on February 10 marks a step beyond typical trade facilitation; it represents a commitment to an ambitious, win-win partnership that challenges both sides to think bigger, aim higher and go beyond business as usual.
• The EFTA desk will be pivotal in turning these opportunities into results. From facilitating partnerships to guiding regulatory frameworks, the EFTA desk will serve as a critical resource for businesses navigating the complexities of a new market.
• What makes the EFTA–India partnership unique is its long-term focus. This is not merely a transactional arrangement to improve market access, but the basis for a long-term relationship grounded in trust, shared values and a vision for mutual growth. The EFTA desk embodies this commitment by fostering connections that benefit economies and societies of all parties, not just economically but socially and environmentally as well.
Do You Know:
• According The European Free Trade Association website, European Free Trade Association (EFTA) is the intergovernmental organisation of Iceland, Liechtenstein, Norway and Switzerland. It was set up in 1960 by its then seven Member States for the promotion of free trade and economic integration between its members.
• The founding members – Austria, Denmark, Norway, Portugal, Sweden, Switzerland and the United Kingdom – established EFTA by signing a Convention in Stockholm on 4 January 1960.
• EFTA was established to foster economic cooperation and promote free trade between its seven founding Member States. The formation of the EFTA trade bloc was a response to the European Union’s predecessor, the European Economic Community (EEC), which was established in 1957 as a project for European integration. EFTA was founded as an alternative model for European integration through an intergovernmental model, by countries that were either unwilling or unable to join the EEC. Another key difference between the two blocs was that EFTA did not establish a customs union, thus allowing its members to retain a greater degree of sovereignty.
• EFTA consists of four countries – Iceland, Liechtenstein, Norway and Switzerland. However, only three of them are members of the EEA, with Switzerland having its own set of bilateral agreements with the EU instead. Thus, when speaking of EEA-related matters, the term “EFTA at three” is often used to highlight that these only concern Iceland, Liechtenstein and Norway. “EFTA at four” is used when needing to clarify that all four Member States are concerned, usually in the context of the EFTA Convention or EFTA’s third-country relations.
Other Important Articles Covering the same topic:
📍India-EFTA Trade and Economic Partnership Agreement
UPSC Previous Year Prelims Question Covering similar theme:
7. Consider the following countries: (2018)
1. Australia
2. Canada
3. China
4. India
5. Japan
6. USA
Which of the above are among the ‘free-trade partners’ of ASEAN?
(a) 1, 2, 4 and 5
(b) 3, 4, 5 and 6
(c) 1, 3, 4 and 5
(d) 2, 3, 4 and 6
ECONOMY
India’s oil & gas companies look to increase LNG imports from US
Syllabus:
Preliminary Examination: Current events of national and international importance.
Main Examination:
• General Studies II: Effect of policies and politics of developed and developing countries on India’s interests
• General Studies III: Infrastructure: Energy, Ports, Roads, Airports, Railways etc.
What’s the ongoing story: With the new Donald Trump administration in the United States looking to push American energy production and exports, India’s public sector oil and gas companies, including GAIL, Indian Oil Corporation (IOC), and Bharat Petroleum Corporation (BPCL), are in active discussions with American suppliers to import more liquefied natural gas (LNG) from the US.
Key Points to Ponder:
• Discuss the significance of India’s growing LNG imports from the US in the context of India’s energy security and diversification strategy.
• Analyse the geopolitical and economic implications of India’s shift towards importing more natural gas from the United States.
• How does India’s shift towards importing more natural gas from the United States will
affect India’s relationships with traditional energy suppliers like the Middle East and Russia?
• India is increasing its LNG imports as part of its energy transition strategy. What challenges does India face in integrating LNG into its energy mix, and what steps should be taken to overcome these?
• The US has emerged as a major LNG supplier in the global energy market. How does this impact global energy geopolitics, particularly for energy-importing countries like India?
Key Takeaways:
• Higher LNG purchase may feature in deliberations between India and the US during Modi’s US visit. Discussions between US and Indian companies on potential long-term LNG contracts are also expected to take place on the sidelines of the India Energy Week in Delhi.
• After taking charge last month, Trump lifted the Joe Biden administration’s ban on export permits for new US LNG projects, which could further solidify Washington’s position as the world’s largest LNG exporter.
• According to industry watchers, apart from securing more LNG for India’s growing natural gas consumption, higher energy imports from the US could signal a reduction in New Delhi’s trade surplus with Washington amid Trump’s hard talk and tariff threats. A few other countries have already signalled that they are interested in buying more LNG from the US, evidently in a bid to balance their trade with Washington.
• Currently, GAIL has term contracts for US LNG totalling 5.8 million tonnes per year. The bulk of India’s long-term LNG volumes come from Qatar. LNG prices under the term contracts with Qatar are linked to crude oil prices, while supply contracts for US LNG are usually linked to the Henry Hub prices, a benchmark for LNG prices in the US.
Do You Know:
• India is already among the top LNG importers in the world. The government wants the share of natural gas in India’s primary energy mix to grow to 15 per cent by 2030 from a little over 6 per cent at present. Given limited domestic production of natural gas, the growth in gas consumption is expected to be driven by higher LNG imports. Over the years, India has been expanding LNG import and regasification capacity to support higher imports of the fuel.
• When cooled to minus 162 degrees Celsius, natural gas becomes a liquid that can be transported by special ships. Non-liquid natural gas, in comparison, has been traditionally transported by pipelines, which are costly and often tie particular sellers and buyers together.
• Liquefaction facilitates trade of gas, and makes the gas market more global, flexible, and accessible. So, while the security situation in Afghanistan and Pakistan makes a pipeline to India from West Asia unfeasible, India imports large quantities of the supercooled fuel gas.
Other Important Articles Covering the same topic:
📍Geopolitics of LNG: The winners and the victims
UPSC Previous Year Mains Question Covering similar theme:
📍The question of India’s Energy Security constitutes the most important part of India’s economic progress. Analyse India’s energy policy cooperation with West Asian countries. (2017)
Rupee fall: Overseas loans turn dearer for Indian cos
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: The weakening rupee has started impacting Indian corporates that have gone for foreign currency borrowings, compounding concerns at a time when trade wars and economic slowdown are casting a shadow over global growth prospects.
Key Points to Ponder:
• What is Currency depreciation?
• What do you understand by Rupee depreciation?
• Appreciation vs Depreciation of Currency-Compare and Contrast
• What is Devaluation of Currency? Depreciation and Devaluation both are same?
• What are the reasons for Current Depreciation of Indian Rupee?
• What will be the impact, and will exporters benefit?
• What measures can the RBI and the government take to stabilize the currency?
• How does the fall of the Indian Rupee impact the macroeconomic indicators of India, such as inflation, foreign exchange reserves, and the current account deficit (CAD)?
Key Takeaways:
• The five per cent depreciation in the rupee since April 2024 has directly increased the rupee equivalent of debt repayment for companies relying on external commercial borrowings (ECBs) by the same percentage, pinching the corporate sector.
• There could be more trouble in the offing as there are clear indications from the RBI that it may not be averse to the idea of a steady depreciation in the rupee in line with other currencies.
• RBI Governor Sanjay Malhotra last week said the RBI’s interventions in the forex market focus on smoothening excessive and disruptive volatility rather than targeting any specific exchange rate level or band.
• When the interest rate differential between the US and India was nearly 5 per cent in 2020, foreign loans were more attractive than rupee borrowing. However, that’s not the case now.
• With the U.S. Federal Reserve hiking rates and the dollar appreciating, this advantage has eroded and the foreign loans have started haunting Indian firms which have failed to hedge the risk.
• As the rupee has depreciated by 3.2 per cent in the last three months, a company which has borrowed Rs 2,000 crore overseas – mostly unhedged – will see the slide squeezing them hard of late. If the loan of this company is five years old, the depreciation burden will shoot up by over 22 per cent in addition to the interest of 6.6-7 per cent per annum.
Do You Know:
• The depreciation of the Indian rupee has a dual impact on the economy, presenting both advantages and disadvantages. On the downside, a weaker rupee increases the cost of imports, particularly crude oil, leading to higher production costs and inflationary pressures.
• Foreign Institutional Investors (FII) have been on a selling spree in Indian markets since October 2024. Net sales of $11 billion by FIIs in the third quarter of FY25 have exerted additional pressure on the Indian rupee. Furthermore, the widening trade deficit, which has reached $188 billion in the current fiscal year to date and is expected to increase by 18 per cent over FY24, has also contributed to the downward pressure on the currency.
• The rupee has depreciated by 3.6 per cent over the past 10 months.
• In response, the Reserve Bank has adopted a more measured approach to intervention, selling foreign exchange reserves at an average of $3.3 billion over the past seven weeks.
Other Important Articles Covering the same topic:
UPSC Previous Year Prelims Question Covering similar theme:
8. Which one of the following is not the most likely measure the Government/RBI takes to stop the slide of Indian rupee? (2019)
(a) Curbing imports of non-essential goods and promoting exports
(b) Encouraging Indian borrowers to issue rupee denominated Masala Bonds
(c) Easing conditions relating to external commercial borrowing
(d) Following an expansionary monetary policy
9. Consider the following statements:
The effect of devaluation of a currency is that it necessarily
1. improves the competitiveness of the domestic exports in the foreign markets
2. increases the foreign value of domestic currency
3. improves the trade balance
Which of the above statements is/are correct?
(a) 1 only
(b) 1 and 2
(c) 3 only
(d) 2 and 3
Switzerland, Liechtenstein pushing for bilateral investment treaty with India
Syllabus:
Preliminary Examination: Current events of national and international importance.
Main Examination: General Studies II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
What’s the ongoing story: Two of the four-member European Free Trade Association (EFTA) countries—Switzerland and Liechtenstein—are pushing for a bilateral investment treaty (BIT) with India after the regional trade organisation signed a trade agreement with India in March last year, committing to a $100 billion investment over 15 years.
Key Points to Ponder:
• Explain the significance of Switzerland and Liechtenstein as investment partners for India.
• What are the potential benefits of signing a new BIT with Switzerland and Liechtenstein?
• India is negotiating a trade and investment agreement with the European Free Trade Association (EFTA). Discuss the implications of this agreement for India’s economy and foreign direct investment (FDI) inflows.
• Examine the role of financial centres like Switzerland and Liechtenstein in global investment flows.
• DTAA between India and Switzerland and MFN Clause-Connect the dots
Key Takeaways:
• Initially, a BIT was not part of the discussion, but two of the EFTA countries, Switzerland and Liechtenstein, are now advocating for a treaty after India unilaterally cancelled its old BITs, two people familiar with the development told The Indian Express. Switzerland is the largest trading partner of India among the countries in the EFTA region.
• The push for a BIT assumes significance amid a tax-related concern involving Switzerland-headquartered Nestlé. In December last year, Switzerland suspended the Most-Favoured-Nation (MFN) clause in the Double Taxation Avoidance Agreement (DTAA) originally signed between India and Switzerland in 1994.
• This decision followed a ruling by the Indian Supreme Court last year, which determined that the DTAA cannot be enforced unless it is notified under the Income Tax Act. As a result, Swiss companies such as Nestlé face higher taxes on dividends
Do You Know:
• Notably, India had annulled BITs based on older model texts framed in 1993 after receiving adverse judgments in multibillion-dollar disputes in international courts. To prevent this, the model BIT included the clause “exhaustion of local remedies,” emphasising state rights over investor rights. To be sure, India has now signalled that better protection for foreign investors is on offer for its trade partners as it begins the groundwork to revamp the conservative 2016 model Bilateral Investment Treaty (BIT), which favoured the state over investors in investor-state disputes.
• A revamp of the 2016 model BIT was mentioned in the Union Budget after multiple Western trade partners cited burdensome norms during ongoing treaty negotiations. India is currently in talks with the UK and the European Union for an investment treaty.
Other Important Articles Covering the same topic:
📍Why India needs a forward-looking approach to Bilateral Investment Treaties
UPSC Previous Year Prelims Question Covering similar theme:
10. With reference to India’s decision to levy an equalization tax of 6% on online advertisement services offered by non-resident entities, which of the following statements is/are correct? (2018)
1. It is introduced as a part of the Income Tax Act.
2. Non-resident entities that offer advertisement services in India can claim a tax credit in their
3. home country under the “Double Taxation Avoidance Agreements”.
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
EXPLAINED
DEI (DIVERSITY, EQUITY, INCLUSION)
Syllabus:
Preliminary Examination: Current events of national and international importance.
Main Examination: General Studies II: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.
What’s the ongoing story: In his second term as President of the United States, Donald Trump has moved to dismantle the DEI (Diversity, Equity and Inclusion) policies initiated by his predecessor Joe Biden.
Key Points to Ponder:
• Explain the concept of Diversity, Equity, and Inclusion (DEI). How do DEI policies aim to address historical inequalities in society?
• Analyse the reasons behind Donald Trump’s opposition to DEI policies in the U.S. What political and social factors contribute to the ongoing debate?
• Examine the argument that DEI policies undermine meritocracy. Can equity and merit coexist in a fair and just society? Provide examples.
• Discuss the implications of the recent U.S. Supreme Court decision against race-based affirmative action in college admissions. What impact could this have on DEI initiatives globally?
Key Takeaways:
• US Secretary of State Marco Rubio echoed this view in a post on X last week, when he said he would not be attending the G20 Summit in South Africa this year, citing (among other things) its promotion of “solidarity, equality, & sustainability”. He equated these to “DEI and climate change” – issues the Trump Administration has rallied against.
• DEI refers to policies that seek to promote the fair treatment and full participation of all, particularly groups who have historically been underrepresented or subject to discrimination based on identity or disability.
• Biden in June 2021 passed an executive order titled ‘Diversity, Equity, Inclusion, and Accessibility in the Federal Workforce’, which defined these terms as follows:
—Diversity: The practice of including the many communities, identities, races, ethnicities, backgrounds, abilities, cultures, and beliefs of the American people, including underserved communities.
—Equity: The consistent and systematic fair, just, and impartial treatment of all individuals, including individuals who belong to underserved communities that have been denied such treatment.
—Inclusion: The recognition, appreciation, and use of the talents and skills of employees of all backgrounds.
Do You Know:
• The call to diversify workplaces and make them more inclusive is not new. Such efforts date back to World War II (1939-45), when US President Franklin D Roosevelt banned racial discrimination in hiring defence contractors. This was taken forward by the civil rights movement of the 1960s, with the Civil Rights Act of 1964 banning employment discrimination based on race, colour, sex, religion and other criteria.
• The Civil Rights Act of1964 officially banned any employer from discriminating based on race, colour, sex, religion, and other criteria. This did not, however, lead to women, queer persons, or Black and Brown people automatically receiving the kind of opportunities that historically more privileged groups did.
• Organisations, at times of their own volition, at times pushed by the government, had to make a concerted effort to hire a more diverse workforce. According to a 2019 article in Time magazine, especially since “Trump’s election, and with the emergence of movements like #MeToo and Black Lives Matter”, DEI has “exploded”.
Other Important Articles Covering the same topic:
📍Trump sued in attempt to block his anti-diversity orders
Jan 2025 was warmest ever: Why La Niña did not bring down temperatures
Syllabus:
Preliminary Examination: Current events of national and international importance.
Main Examination:
• General Studies I: Important Geophysical phenomena such as earthquakes, Tsunami, Volcanic activity, cyclone etc., geographical features and their location-changes in critical geographical features (including water-bodies and ice-caps) and in flora and fauna and the effects of such changes.
• General Studies III: Conservation, environmental pollution and degradation, environmental impact assessment.
What’s the ongoing story: January 2025 was the 18th month in the last 19 when the global average surface air temperature breached the 1.5 degree Celsius threshold. Scientists had expected that the arrival of the La Niña phase, which emerged in December 2024, would bring some relief from the heat.
Key Points to Ponder:
• Explain the La Niña phenomenon and its typical climatic impacts globally. How does it differ from El Niño?
• Discuss the role of La Niña in influencing India’s monsoon patterns. How does it impact agriculture and water resources?
• How does the Pacific Ocean influence global weather patterns?
• Examine the role of El Niño-Southern Oscillation (ENSO) in climate variability.
• Despite La Niña’s cooling effect, January recorded high global temperatures. Analyze the reasons behind this anomaly.
• What strategies should India adopt to mitigate the risks posed by climate variability, including La Niña and El Niño events?
• How can global climate policies incorporate the understanding of La Niña and El Niño effects to build resilience against extreme weather events?
Key Takeaways:
• Last month was the hottest January on record, with the global average surface air temperature being 1.75 degrees Celsius above the pre-
industrial level (1850-1900 average), Europe’s Copernicus Climate Change Service (C3S) said last week.
• It also said the temperatures reached record-breaking levels despite the development of La Niña conditions in the tropical Pacific and their temporary cooling effect on global temperatures.
• January 2025 was the 18th month in the last 19 when the global average surface air temperature breached the 1.5 degree Celsius threshold. Scientists had expected that the arrival of the La Niña phase, which emerged in December 2024, would bring some relief from the heat. However, this did not happen.
Do You Know:
• La Niña is one of the three phases of what is known as the El Niño Southern Oscillation (ENSO), a climate phenomenon characterised by changes in sea temperatures along the central and eastern tropical Pacific Ocean, accompanied by fluctuations in the atmosphere overhead. ENSO influences, alters, and interferes with global atmospheric circulation, which, in turn, influences the weather worldwide.
• ENSO has three phases — warm (El Niño), cool (La Niña), and neutral — which occur in irregular cycles of two to seven years.
• In the neutral phase, the eastern side of the Pacific Ocean (near the northwestern coast of South America) is cooler than the western side (near the Philippines and Indonesia). This is due to the prevailing wind systems that move from east to west, sweeping the warmer surface waters towards the Indonesian coast. The relatively cooler waters from below come up to replace the displaced water.
• Experts suggest that a particularly warm January cannot foretell the long-term trajectory of weather patterns on the planet. However, it does indicate that the ability of natural cooling phases to temporarily bring down global temperatures might be waning.
• The only way to thwart this from happening is to drastically reduce greenhouse gas (GHG) emissions. In 2024, atmospheric GHG reached the highest annual levels ever recorded in the atmosphere, according to C3S.
Other Important Articles Covering the same topic:
📍Earth sets another heat record in January despite freezing US, expectations of cooler 2025
UPSC Previous Year Prelims Question Covering similar theme:
11. La Nina is suspected to have caused recent floods in Australia. How is La Nina different from El Nino? (2011)
1. La Nina is characterised by an usually cold ocean temperature in equatorial Indian Ocean whereas El Nino is characterised by unusually warm ocean temperature in the equatorial Pacific Ocean.
2. El Nino has adverse effect on south-west monsoon of India but La Nina has no effect on monsoon climate.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
|
PRELIMS ANSWER KEY |
| 1. (d) 2. (d) 3. (a) 4.(b) 5.(b) 6.(a) 7.(c) 8.(d) 9.(a) 10. (d) 11.(d) |
For any queries and feedback, contact priya.shukla@indianexpress.com
Subscribe to our UPSC newsletter. Stay updated with the latest UPSC articles by joining our Telegram channel – IndianExpress UPSC Hub, and follow us on Instagram and X.
