UPSC Key: PM’s Independence Day speech, FAST-DS, and Privilege notice

Mains Examination: General Studies II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. 

What’s the ongoing story: Marking the 80th Independence Day in the shadow of the Jantar Mantar protests by the youth — which saw the resignation of a Union Minister and the promise of exam reform — Prime Minister Narendra Modi Saturday underlined “yuva shakti” (youth power) assuring them that the Government was committed to fulfilling their dreams. Calling them the biggest beneficiaries (labharthi) of India’s development journey, he urged the youth to step up and become agents of change.

Key Points to Ponder:

— What are the key highlights of PM’s Independence day speech?

— Know the history of India’s independence day. 

— What is a seven-point growth framework ‘Sapt Dhara’?

— Why is self-reliance in various sectors important for India’s economic and strategic security?

— What is the significance of youth participation in India’s development process?

— What are the challenges to India’s energy security?

— With which countries India has recently signed FTAs?

— How is India increasing its self-reliant capabilities in various sectors like defence and energy? 

— How has digitalisation improved governance and public policy in India?

Key Takeaways:

— Addressing the nation on Independence Day, Modi announced free online coaching for those preparing for competitive exams, training for 1 crore youth in AI skills and a concerted action plan to expand and nurture sporting talent for the 2036 Olympics. As their duty, he called upon the young to take part in the national Census and help their family digitize their household data which, he said, was key to policy-making.

— Towards the end of his address, he echoed his ideological refrain about “urban Naxals” and “Andolanjeevis.” He said that while Maoists, who had killed more than 3,000 security personnel and stalled development, had been effectively countered, there were “dimagi Naxals” (those with a Maoist mindset), who were looking for ways to unleash violence and anarchy and push society onto the wrong path.

— In his 13th address from the ramparts of the Red Fort, Modi went beyond the mantra of self-reliance and outlined seven vital areas — shakti ki sapta dhara – for reform. The goal: to ensure that India can build and scale up domestic capacity to transform itself into an exporting nation and compete globally on an equal or better footing with quality made-in- India products.

— He peppered his 75-minute speech with references comparing the track record of his government with that of the previous Congress period saying speed in governance has been a defining feature of his 12-year tenure.

— While this theme was a throwback to his earlier addresses, what stood out was how the PM made the youth the front and centre of his address. There were nearly 50 references to “yuva shakti” (youth power), “naujawan” (youth) and “yuva” (youth).

— Modi also announced the launch of a talent hunt in villages, cities and schools across the country to spot budding sporting talent in the 5-16  age group to prepare them for the 2036 Olympics which India is bidding to host.

— With job creation emerging as a major concern for the youth, Modi sought to broaden the definition of employment — projecting startups, AI, aviation, sports, drones, electric vehicles and the bio-economy, among other things, as emerging employment avenues.

“We must take forward the goal of a ‘Viksit Bharat’ by connecting it with the aspirations and participation of our youth,” said Prime Minister Narendra Modi in his Independence Day speech, on Saturday. (Express photo by Praveen Khanna)

— Modi said India could withstand global challenges and headwinds, including the “weaponization” of resources by many countries, because of his government’s thrust on self-reliance. This wasn’t defined as economic isolation. In fact, he coupled it with an aggressive export agenda. Referring to free trade agreements being negotiated or signed with around 40 countries, he urged MSMEs to use this opening to enter global markets.

— He framed self-reliance as building capacities along “sapta dhara” — seven streams through which India can build global capabilities and become a developed country: manufacturing, agro-food production and food processing, technology and innovation, logistics and faster connectivity, defence and security, green and blue economy; and soft power.

— He called for complete manufacturing value chains, global-scale food exports, Made-in-India 6G, stronger defence exports, green hydrogen and renewable energy, and greater use of India’s cultural and creative strengths. He said India has already begun production at three semiconductor plants, and five to eight more plants are expected to come up in the coming years. Flagging free trade agreements, the PM said these unlocked countless opportunities that must be seized by all.

— He also put energy security, semiconductor manufacturing and advanced technology at the centre of India’s next phase of growth, while calling for faster reforms and challenging Indian companies to become global leaders as the country seeks to become a developed economy by 2047.

From the Economy page- “PM puts self-reliance, energy, tech at centre of Viksit Bharat push”

— Prime Minister Narendra Modi on Saturday underscored the need for self-reliance, particularly in sectors like energy, semiconductors, and critical minerals, to avoid being vulnerable to the “weaponisation” of resources and even territory being done by some other countries.

— The Prime Minister identified energy security as a critical need of the hour, emphasising that a world powered by chips, artificial intelligence (AI), and data centres requires massive and reliable energy supply.

— Modi also outlined a seven-point growth framework ‘Sapt Dhara’ for the next five-seven years, with focus on manufacturing, agriculture and food production, technology and innovation, infrastructure and connectivity, defence, green and blue economy, and India’s soft power.

— Modi also said that India is now focussed on offshore oil and gas exploration, after opening up 99% of its coastline — previously designated as “no-go” areas to upstream activities. India depends on imports to meet over 88% of its crude oil requirement and about half of its natural gas needs. 

Other Important Articles Covering the same topic:

📍Highlights of PM’s Red Fort speech: ‘AI training, free coaching for youth’

Previous year UPSC Mains Question Covering similar theme:

It is argued that the strategy of inclusive growth is intended to meet the objectives of inclusiveness and sustainability together. Comment on this statement. (UPSC CSE 2019)

For small tax payers, Govt opens window to declare foreign income, assets

Syllabus:

Preliminary Examination: Current events of national importance and economic development.

Mains Examination: General Studies-II, III: Government policies and interventions for development in various sectors and issues arising out of their design and implementation, Indian economy.

What’s the ongoing story: The government has notified a one-time voluntary disclosure scheme, Foreign Assets of Small Taxpayers – Disclosure Scheme (FAST-DS), allowing taxpayers to declare their undisclosed foreign bank accounts, immovable property, jewellery, artistic work, shares, securities or any other asset or income on payment of a specified tax or fee. 

Key Points to Ponder:

— What are the key features of Foreign Assets of Small Taxpayers – Disclosure Scheme (FAST-DS)?

— How can FAST-DS improve tax compliance?

— What are the challenges related with the regulation of undisclosed foreign assets?

— How will FAST-DS benefit small taxpayers?

— Know about the Black Money Act, 2015.

— How can voluntary disclosure schemes help tackle the challenge of black money?

Key Takeaways:

— The Central Board of Direct Taxes (CBDT) has notified the Foreign Assets of Small Taxpayers – Disclosure Scheme Rules, 2026, operationalising the Budget announcement of FAST-DS, effective August 16 with last declaration date on December 31. 

— The scheme applies to two broad categories of asset or income — undisclosed foreign income or asset located outside India up to Rs 1 crore in value; and assets located outside India up to Rs 5 crore in value acquired from income accruing or arising outside India by an assessee when he or she was a non-resident, but did not declare them in the tax return on becoming a resident; or assets acquired from income offered to tax under the Income-tax Act but not declared in the relevant schedule in the tax return.

— Under the first category, taxpayers need to pay 30% of fair market value of assets or 30% of undisclosed income as tax and 30% as additional income tax in lieu of penalty in order to get immunity from prosecution. For the second category, immunity from both penalty and prosecution is available with the fee payment of Rs 1 lakh.

— On making a valid declaration and payment under FAST-DS, immunity will be provided from any further tax or penalty, and from prosecution, under the Black Money Act, 2015, in respect of the income or asset so declared, the Income Tax Department said. Also, the income or amount of investment in the asset declared under this scheme will not be included in the total income of the taxpayer under the Income-tax Act or the Black Money Act, it said. 

— As per the newly notified rules, a declaration for any asset or income has to be made electronically in Form 1 to the income tax authority under the two categories where the aggregate value of undisclosed income and assets do not exceed Rs 1 crore or Rs 5 crore, depending on the category under which the assets are declared.

— Other than a bank account, the declaration for any asset will not be treated as invalid or void on the grounds of misrepresentation, suppression of facts, or furnishing of false material particulars, only if the variance between the fair market value and the value determined by the assessing officer or any other income tax authority during any assessment or inquiry does not exceed 20%, the rules stated.

— For the scheme, the valuation date is March 31, 2026 and the fair market value of assets proposed to be declared must be computed as on this date. 

— The scheme will not apply if any income or asset, directly or indirectly, represents proceeds of crime in respect of which proceedings have been initiated, or are pending, under the Prevention of Money-laundering Act, 2002; or any income or asset relating to an assessment year for which assessment proceedings have already been completed under the Black Money Act, 2015, the Department said.

Do You Know:

— In her Budget speech in February, Union Finance Minister Nirmala Sitharaman had said that the government will introduce a one-time, 6-month foreign asset window to address practical issues of small taxpayers like students, young professionals, tech employees, relocated NRIs and others, for disclosing income or assets below a certain size.

Other Important Articles Covering the same topic:

📍Over 30,000 taxpayers declare foreign assets worth Rs 29,208 crore

 

NATION

Rahul Gandhi gets privilege notice for allegations against Shah

Syllabus:

Preliminary Examination:Indian Polity and Governance – Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues, etc. 

Mains Examination: General Studies-II:  Parliament and State legislatures—structure, functioning, conduct of business, powers & privileges and issues arising out of these.

What’s the ongoing story: Leader of Opposition in Lok Sabha Rahul Gandhi has been served a breach of privilege notice for allegedly using “unparliamentary and derogatory language” and for levelling “grave allegations” against Union Home Minister Amit Shah, it is learnt. 

Key Points to Ponder:

— What is a privilege motion?

— What are parliamentary privileges?

— What is the constitutional provision with regard to the privilege motion?

— What is the privileges committee of Parliament?

— Parliamentary privileges can be classified into two broad categories. What are those two categories?

— How does Parliament act on breach of privilege?

— What are some of the important judgements related to parliamentary privileges?

Key Takeaways:

— The senior Congress leader is learnt to have been asked to furnish his reply by August 28 for consideration by Lok Sabha Speaker Om Birla after he received two notices in this regard from Bharatiya Janata Party (BJP) Chief Whip Sanjay Jaiswal and party MP Anurag Thakur.

— Thakur is said to have given a notice of “question of breach of privilege” and “contempt of the House” on July 30, accusing Gandhi of “using unparliamentary and derogatory language and for levelling grave allegations against” Shah without adequate advance notice under Rule 353 during the debate on Public Examination (Prevention of Unfair Means) Amendment Bill, 2026.

— Jaiswal, in a letter on July 29, is learnt to have asked Birla to take cognisance of the alleged use of “unparliamentary expressions” by Gandhi during the debate on the Public Examination (Prevention of Unfair Means) Amendment Bill, 2026, and to take appropriate action under the Rules of Procedure.

Do You Know:

— Parliamentary privileges are certain rights conferred to the Members of Parliament for conducting the business of the Parliament.

— According to the Constitution, the powers, privileges and immunities of Parliament and MP’s are to be defined by Parliament. According to the Constitution of India, Articles 105 and 122 outline the privileges of Parliament, while Articles 194 and 212 pertain to the privileges of state governments. 

— Article 105, there shall be freedom of speech in Parliament. No member of Parliament shall be liable to any proceedings in any court in respect of anything said or any vote given by him in Parliament or any committee thereof.

— Article 122: The validity of any proceedings in Parliament shall not be called in question in court on the ground of any alleged irregularity of procedure.

— Article 194 and Article 212 are corresponding articles for state legislature. 

— If there is a belief that such a privilege has been breached, a motion can be raised by any member.

— The right to raise a question of privilege is based on satisfying two conditions, namely: (i) the question shall be restricted to a specific matter of recent occurrence, and (ii) the matter requires the intervention of the Council.

— The Speaker/Rajya Sabha Chairman is the first level of scrutiny of a privilege motion. Therefore, the Speaker/Chairman can decide on the privilege motion himself or herself or refer it to the privileges committee of Parliament.

Other Important Articles Covering the same topic:

📍What is a Privilege Motion and how does the Committee of Privileges in Parliament examine it?

📍Explained: What constitutes a breach of legislature’s privilege?

UPSC Prelims Practice Question Covering similar theme:

(1) Consider the following statements:

Statement 1:

A defamation suit cannot be filed for a statement made in the House.

Statement 2:

Members of Parliament are not exempted from legal action for any statement made in the course of their duties.

Which one of the following is correct in respect of the above statements?

(a) Both Statement 1 and Statement 2 are correct and Statement 2 is the correct explanation for Statement 1.

(b) Both Statement 1 and Statement 2 are correct and Statement 2 is not the correct explanation for Statement 1.

(c) Statement 1 is correct Statement 2 is incorrect

(d) Statement 1 is incorrect Statement 2 is correct

Previous year UPSC Mains Question Covering similar theme:

The ‘Powers, Privileges and Immunities of Parliament and its Members’ as envisaged in Article 105 of the Constitution leave room for a large number of un-codified and un-enumerated privileges to continue. Assess the reasons for the absence of legal codification of the ‘parliamentary privileges’. How can this problem be addressed? (UPSC CSE 2014)

 

OPINION

Power of the name: Why ‘Mecca’ matters in new defence pact

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: Rahana Sherin K V writes- “On 7 August 2026, Saudi Arabia, Pakistan and Türkiye signed a landmark defence agreement. On paper, the agreement is about hard-power realpolitik. Yet, instead of giving this pact an administrative or technical name, such as the Riyadh-Islamabad-Ankara Joint Defence Agreement, the signatories chose the title Mecca Joint Defence Agreement. The choice matters because Mecca holds a sacred place in the Muslim community as the birthplace of Prophet Muhammad, giving the agreement a meaning that goes beyond its military purpose.”

Key Points to Ponder:

—What are the key provisions of the Mecca Joint Defence Agreement?

— What is the concept of collective defence? How does it differ from a security partnership or strategic alliance?

— How do regional security alliances influence the balance of power in international relations?

— What are India’s strategic interests in maintaining balanced relations with Saudi Arabia, Turkey, Iran and the Gulf countries?

— Why is West Asia strategically important for India’s economic and security interests?

— What are the key pillars of India’s Act West Asia policy?

— How could evolving security architectures in West Asia affect India’s strategic interests?

— Read about the Abraham Accords. 

— How have India–Turkey and India–Pakistan relations evolved in recent years?

— Map work: Locate Saudi Arabia, Turkey and countries of West Asia on a map.

Key Takeaways:

— “So, why do governments spend time choosing highly symbolic titles for their treaties? The answer lies in how shared ideas and symbols shape our political world. A treaty title is not just a label. It is a deliberate “frame” designed to guide how the public, regional rivals, and the global community perceive a deal. By choosing a symbolic name, leaders can elevate a cold, transactional military deal to something sacred.”

— “We have seen this before. Consider the 2020 Abraham Accords between Israel, the United Arab Emirates, and Bahrain. The agreements focused on issues such as trade, direct flights, and security cooperation. However, the choice of the name carried a broader symbolic meaning.”

— “In his keynote address at the Abraham Accords dinner in Abu Dhabi on October 20, 2020, the then-US Treasury Secretary Steven T Mnuchin explained that the accords were named after Abraham, a figure revered in Judaism, Christianity, and Islam. By invoking a figure shared by the three Abrahamic faiths, the name emphasised their common religious heritage. It therefore presented a strategic geopolitical realignment not only as a security and diplomatic arrangement, but also as a symbol of shared identity and interfaith reconciliation.”

— “The 2026 Mecca Agreement offers a similar example, but through the symbolism of place rather than a shared religious figure. By invoking Mecca, a deeply respected sacred city and the spiritual heart of the Islamic world, the agreement draws upon an existing source of religious legitimacy.”

— “For Saudi Arabia, hosting the pact in Mecca and associating it with the city’s name offers an opportunity to reassert its regional leadership at a time when that position has come under pressure from questions over Riyadh’s response to regional crises, and growing public criticism of its perceived restraint.”

— “For Pakistan and Turkey, the ‘Mecca’ frame serves as a powerful shield against domestic political pushback. For Pakistan, being part of a defence pact named after a holy city gives the agreement a stronger ideological meaning.”

— “In Turkey, the civilisational framing appeals directly to nationalist pride, presenting Turkish defence exports not as mere business transactions, but as a noble, protective alliance.”

— “This strategy works because of a clever division between the symbolic frame and the legal text. By keeping the sacred name in the title and the strategic limits in the text, these three states can project a grand narrative of pan-Islamic solidarity to their domestic bases. Meanwhile, their actual legal liabilities remain strictly technical and limited.”

Do You Know:

— Saudi Arabia, Turkey and Pakistan signed the Mecca Joint Defence Agreement, creating a new trilateral security framework under which an armed attack on one country will be treated as an attack on all three.

— The agreement’s central provision states that an armed attack against any one of the three countries will be regarded as an attack against them all, making it the first trilateral mutual-defence arrangement among the three Sunni Muslim-majority nations. According to a joint statement cited by the Associated Press, the pact is intended to strengthen collective deterrence against any act of aggression.

— The clause resembles the principle of collective defence used by military alliances such as NATO, although the Mecca agreement does not spell out automatic military obligations.

Other Important Articles Covering the same topic:

📍Why Pakistan, Saudi Arabia, Turkey just signed a new defence pact

📍Saudi Arabia-Pakistan defence pact: What it means for the two countries

UPSC Prelims Practice Question Covering similar theme:

(2) Which of the following countries have signed a new defence agreement that contains a key “attack on one, attack on all” provision, drawing comparisons with NATO’s collective-defence principle?

1. Turkey

2. India

3. Australia

4. Pakistan

5. Saudi Arabia

Select the correct answer using the codes given below:

(a) 1 and 4 only

(b) 2 and 3 only

(c) 2, 3 and 4 only

(d) 1, 4 and 5 only

Previous year UPSC Mains Question Covering similar theme:

The question of India’s Energy Security constitutes the most important part of India’s economic progress. Analyze India’s energy policy cooperation with West Asian Countries. (UPSC CSE, 2017) 

 

ECONOMY

Why India needs more power for AI, chips and data centres

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies-II, III: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Infrastructure: Energy.

What’s the ongoing story: India is betting on nuclear power to meet the rapidly rising electricity demand from emerging sectors such as semiconductors, artificial intelligence (AI) and data centres, with Prime Minister Narendra Modi setting a target of commissioning five new nuclear reactors in the current decade and expanding nuclear capacity to 100 GW by 2047.

Key Points to Ponder:

— How has India’s civil nuclear programme evolved?

— The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act-know the key highlights and features. 

— What do you know about light water reactors (LWR), Pressurised Heavy Water Reactor (PHWR) technology and small modular reactors (SMR)? 

— What are the opportunities offered by SMRs for India’s energy sector? 

— India is cooperating with which countries in the development of nuclear plants? 

— Read about India’s nuclear energy programme and Nuclear Energy Mission.

— What is the status of the nuclear energy sector in India?

— How can the Private sector strengthen India’s nuclear energy sector?

— What are the concerns related to private sector participation in India’s Nuclear power programme?

Key Takeaways:

— In his Independence Day address, Modi said “We are working towards a target of 100 GW of nuclear power by 2047. In this decade itself, we have set a target of commissioning five new nuclear reactors.” 

— PM Modi’s comments come against the backdrop of the Parliament passing the SHANTI Act last year, paving the way for wider private participation in India’s tightly regulated civil nuclear power sector and drawing interest from global nuclear technology suppliers from Russia, the US and France.

— On Friday, the Department of Atomic Energy (DAE) also released the draft rules under the Act, laying out the regulatory framework for a broader nuclear power ecosystem, including private participation, captive generation, licensing, safety oversight and nuclear liability.

— As the Centre targets expanding India’s nuclear energy capacity to 100 GWe by 2047, the government is pursuing a two-pronged approach: the deployment of large-capacity reactors as well as the use of small modular reactors (SMRs) to ensure faster deployment of units.

— Even though India’s indigenous pressurised heavy water reactors (PHWR) will continue to form the backbone of the country’s nuclear expansion plans, SMRs are increasingly viewed as a promising technology that could help in industrial decarbonisation.

—  SMRs are also becoming the focal point in India’s international outreach for nuclear collaborations, with the high project costs of large light water reactors (LWRs) triggering questions about the feasibility of their large-scale deployment in the country.

— On the domestic front, India is pursuing an indigenous small reactor programme, with three types of SMR being designed and developed by the Bhabha Atomic Research Centre for demonstration: the 200 MWe Bharat Small Modular Reactor (BSMR-200), a 55 MWe small modular reactor (SMR), and a 5 MWt high-temperature gas-cooled reactor for hydrogen production by coupling with a suitable thermochemical process for hydrogen production. The government has set a target of having at least five indigenously designed and operational SMRs by 2033.

— India has announced the Nuclear Energy Mission to research, design, development, and deployment of SMRs with a total budgetary outlay of Rs 20,000 crore.

— On the large-reactor front, India currently has 25 operational nuclear reactors totalling 8.7 gigawatt-electric (GWe) of capacity, with 10 reactors — with around 8 GWe of capacity — under construction. Another 10 units — with some 6.6 GWe of capacity — are in the pre-project stage.

— India has already developed and mastered indigenous PHWR technology and is following a three-stage nuclear power programme aimed at achieving long-term fuel self-reliance.

— In April, India’s first indigenous fast breeder reactor at Kalpakkam attained criticality, marking a major milestone in the country’s civil nuclear programme.

Do You Know:

— India’s nuclear energy programme has three stages. In the first stage, India is using the uranium fuelled Pressurized Heavy Water Reactor (PHWR). However, India has much less access to uranium than to thorium. Hence, the subsequent stages are designed to transition to using plutonium and thorium.

— In the second stage, India will use plutonium-based mixed oxide as fuel for the Prototype Fast Breeder Reactor (PFBR). It will also utilise the spent fuel of Pressurised Heavy Water Reactors.

— In the third stage, it seeks to make use of thorium-based Advanced Heavy Water Reactors (AHWR), which utilise thorium to breed uranium. This stage is focused on attaining self-sufficiency.

Other Important Articles Covering the same topic:

📍Knowledge Nugget: How is Nuclear Energy Mission and Small Modular Reactors relevant for UPSC Exam?

UPSC Prelims Practice Question Covering similar theme:

(3) With reference to the Small Modular Reactors (SMRs), consider the following statements:

1. They are suitable only for on-grid and not for off-grid applications.

2. These are cost-effective alternatives to conventional large nuclear reactors.

3. India is extensively researching Small Modular Reactors (SMRs) to achieve net-zero emissions while maintaining energy security.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Previous year UPSC main Question Covering similar theme:

With growing energy needs should India keep on expanding its nuclear energy programme? Discuss the facts and fears associated with nuclear energy. (UPSC CSE 2018) 

ALSO IN NEWS

India courts will decide extradition of Hasina, talks on to change course

— As the Tarique Rahman government reiterates its request for the extradition of Bangladesh’s ousted Prime Minister Sheikh Hasina, top government officials in India said such requests have to come before the Indian judiciary and be decided by it, but added that intense discussions were on with Dhaka to move away from such a maximalist position.

— “The decision to extradite will be finally taken by our courts, it will not be a political or diplomatic decision. And what has to be established during the court process is whether the crimes that are alleged to have been committed are also categorised as crimes under the Indian law,” a top official told The Indian Express.

— The extradition request  cannot be decoupled from the current diplomatic exchanges between Delhi and Dhaka, this official said. 

How US is building a case for ‘transhipment’ crackdown & why India may beat risk

— After significantly reducing its direct dependency on Chinese products, the Trump administration, in a report titled ‘The Great Transhipment Scam: Global Evasion and Economic Costs’ on Friday, said that more than 40 countries, including India, are part of a ‘shadow transhipment network’ designed to hide the true economic origin of goods produced in China.

— The White House report categorised the ‘shadow network’ into three tiers, with countries such as India, Mexico, Canada, and the European Union forming tier 1, where illegal transhipment risk is “embedded” within massive legitimate trade flows. While “closely integrated” countries with China such as Vietnam, Malaysia, and Thailand were categorised as tier 2, smaller economies such as Cambodia, Panama, and the UAE, with “weak customs enforcement” were classified as tier 3.

— The report claimed that tariff revenue is the most obvious loss from illegal transhipment and that when China-linked goods enter the US through third countries, they widen the effective trade deficit, displace domestic production, reduce GDP growth, and lower associated federal tax receipts.

— Calling for stronger curbs and Congressional action, the report said that current standards for determining country of origin are complex and cumbersome, and that the rules apply to goods made using components manufactured in multiple countries. 

FDA notices to SRK, Ajay Devgn and Tiger Shroff over Vimal Elaichi ad

— The Maharashtra Food and Drug Administration (FDA) is learned to have issued show-cause notices to Bollywood actors Ajay Devgn, Shah Rukh Khan and Tiger Shroff, alleging that their advertisement for Vimal Elaichi amounts to surrogate advertising for Vimal Pan Masala, a product prohibited in the state.

— The three actors are the latest to come under the FDA’s scrutiny as the regulator steps up its crackdown on gutkha and pan masala containing tobacco or nicotine, coordinating with police to invoke the Maharashtra Control of Organised Crime Act (MCOCA) against eligible cases involving organised networks dealing in banned products.

— The FDA says the advertisement’s presentation, dialogue, product name and market context raise a “serious question” over whether it constitutes indirect or surrogate promotion of a prohibited tobacco-related product, with all three actors participating as brand endorsers.

— The regulator has invoked Section 24 of the Food Safety and Standards (FSS) Act, 2006, which restricts misleading and deceptive food advertisements, and Section 53, which provides for a penalty of up to Rs 10 lakh for anyone who is “party to the publication” of a misleading food advertisement. The FDA has also cited the Food Safety and Standards (Advertising and Claims) Regulations, 2018. The three actors have been asked to respond.

PRELIMS ANSWER KEY 

1. (c), 2. (d), 3.(b)

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