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Important topics and their relevance in UPSC CSE exam for August 27, 2025. If you missed the August 26, 2025, UPSC CSE exam key from the Indian Express, read it here.
Syllabus:
Preliminary Examination: Current events of national and international importance.
Main Examination: General Studies-II, III: Effect of policies and politics of developed and developing countries on India’s interests, Indian Economy.
What’s the ongoing story: WITH THE US deciding to implement the steep 50 per cent tariffs on merchandise from India starting Wednesday, exports of low-margin and labour-intensive goods ranging from apparel, textiles, gems and jewellery to shrimps, carpets and furniture, are set to become unviable in the American market, jeopardising low-skilled jobs in India.
Key Points to Ponder:
— What are tariffs? Why are tariffs imposed?
— What are India’s import and export trends with regard to the US?
— What can be the implications of the higher tariff imposed by the US on India?
— What are the Goods exempt from Trump’s tariffs?
— What are the sectors to be affected most by the higher tariff imposed by the US?
— What steps should be taken to manage the implications of higher tariffs?
— Read about Production Linked Incentive (PLI) schemes.
Key Takeaways:
— With Trump’s new tariffs kicking in, trade experts estimate that the value of India’s merchandise exports to the US could drop by as much as 40-45% in 2025-26 compared with the previous year.
— Around 30 per cent of exports to the US — valued at $27.6 billion in FY25 — will remain duty free as product categories like pharmaceuticals, electronics, and petroleum products have been exempt from Trump’s tariffs, while 4 per cent of the exports — mainly auto parts — will face a 25 per cent tariff rate.
— Meanwhile, competitors like Vietnam, Bangladesh, Cambodia, and even China and Pakistan, which currently face lower tariffs from the Donald Trump administration, are set to benefit from India’s potential losses in various export-oriented sectors.
— The 50 per cent tariff imposed on the majority of Indian goods exported to the US includes the 25 per cent tariff rate announced by Trump late July, and an additional 25 per cent tariff announced early August as a “penalty” for New Delhi’s purchases of Russian oil, apart from its defence imports from Moscow. The additional 25 per cent tariff will take effect from Wednesday.
— The sky-high tariffs mean that goods exporters would be rendered uncompetitive in the US market, which is among the handful of trade partners with whom India has a net goods trade surplus. India runs a sharp trade deficit with China, Russia and the UAE, its other top trading partners in the goods category.
— The impact of the tariffs could be broad-based, as the US accounts for 20 per cent of merchandise exports from India and 2 per cent of the GDP. Sensing a deeper challenge for semi-skilled workers, the textile and gems and jewellery sectors have sought COVID-19-era support for the industry to prevent job losses, as nearly 30 per cent of exports from these sectors go to the US market.
— Product categories likely to be hit the hardest by high US tariffs include textiles and apparel, gems and jewellery, shrimps, machinery and mechanical appliances, some metals (steel, aluminium, copper), organic chemicals, agriculture and processed foods, leather and footwear, handicrafts, furniture, and carpets.
— Exporters have urged the government to introduce a targeted scheme, such as duty drawback or reimbursement, covering approximately 25–50 per cent of the new tariffs imposed on gems and jewellery exports to the US from August to December 2025.
Do You Know:
From the Economy Page “Steep US tariffs could hit India’s PLI push and deepen private capex slowdown”
— With US tariffs on India set to double to 50 per cent starting Wednesday (August 27), the impact could extend much beyond just the direct loss of goods exports. Risk aversion has already been dampening private capital investment, and trade friction with the US – India’s largest export market – could drag momentum in the performance of capital-intensive Production Linked Incentive (PLI) schemes.
— Even before the US tariffs came into play, Indian industry had flagged the lack of domestic demand as one of the key concerns holding back capacity addition. This has resulted in weak PLI performance in a number of sectors. While schemes requiring lower capital investments have taken off faster, investors appear to be sitting on the fence when it comes to sectors that require higher investments – and a trade war could deepen the challenge.
Other Important Articles Covering the same topic:
📍Jaishankar hits out at US tariff, says talks on, ‘lines not cut’
Previous year UPSC Mains Question Covering similar theme:
What are the key areas of reform if the WTO has to survive in the present context of ‘Trade War’, especially keeping in mind the interest of India? (UPSC CSE 2018)
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: As Prime Minister Narendra Modi heads to Japan on August 29-30, the two sides are expected to upgrade the 2008 Joint Declaration on Security Cooperation, launch an economic security initiative on semiconductors, Artificial Intelligence and critical minerals, and increase the investments’ target to 7-10 trillion Yen, The Indian Express has learnt.
Key Points to Ponder:
— Know about the historic background of the India-Japan relationship
— What target has been set by India and Japan for public and private investments and financing by 2026?
— What are the concerns related to the declining population in Japan?
— What are the challenges in the India-Japan relationship?
— How is the current geopolitical situation going to affect India-Japan relationship?
— What is the Shanghai Cooperation Organisation (SCO)?
— Who are the members of the SCO?
Key Takeaways:
— Modi and his Japanese counterpart, Shigeru Ishiba, will take part in the 15th India-Japan Annual Summit and are also expected to travel to Sendai — a city known for its semiconductor prowess — in a bullet train.
— India and Japan are also working on promoting a bilateral energy partnership, starting a digital partnership, and launching a new mobility partnership that encompasses railways, roads and bridges across India, sources said.
— While this will be Modi’s eighth visit to Japan, it is his first summit with Prime Minister Ishiba. According to sources, there are three broad elements of the visit — security; economy, science and technology, innovation; and people-to-people exchange.
— India and Japan will definitely move towards upgrading the 2008 Joint Declaration on Security Cooperation, and will review progress in defence and technology transfer.
— Modi and Ishiba are likely to launch an economic security initiative, which focuses on semiconductors, critical minerals, AI, telecommunication and clean energy.
— They will also encourage Japanese investments to India to be upscaled — the two sides had set a target of 5-trillion Yen for public and private investments and financing by 2026.
— In view of the Japanese involvement in the Ahmedabad–Mumbai bullet train project, the two sides are considering launching a mobility partnership.
— With regard to people-to-people exchange, the two sides are expected to figure out how to help Japan’s aging population and India’s need to skill the younger people.
— The two Prime Ministers will review the Special Strategic and Global Partnership between India and Japan, including defence and security, trade and economy, technology and innovation, and people-to-people exchanges, as well as discuss issues of regional and global importance.
— Prime Minister Narendra Modi’s Asian tour this week could prove doubly consequential for Indian diplomacy. It offers a chance to impart fresh momentum to India’s partnership with Japan while cautiously advancing the normalisation of ties with China.
— India’s manufacturing industries remain dangerously vulnerable to China. Beijing’s bans on rare earth magnets, and the withdrawal of Chinese engineers from Apple’s iPhone production in India have starkly exposed the vulnerabilities created by three decades of neglect in industrial policy.
— Neither “Make in India” nor the current campaign to “buy swadeshi” will quickly enhance Delhi’s strategic autonomy from Beijing. That India is now compelled to seek relief from China on specific trade embargoes only underscores the deepening of economic reliance in the near term.
— Russia’s role in India’s energy security has become contentious. The Biden administration once viewed India’s purchase of discounted Russian oil as a stabilising factor. Trump’s White House, however, treats it as leverage to compel Delhi to cut energy ties with Moscow.
— The SCO is often portrayed as an inner-Asian club standing up to American dominance. That aspiration is undermined, though, by severe internal contradictions. Beyond Delhi’s fraught ties with Beijing, its disputes with Islamabad continue to cast a shadow.
— It will not be surprising if Islamabad raises the pitch for a dialogue with India at Tianjin. Improved ties with the US and a deepening partnership with China have given a new wind to Pakistan’s stalled diplomacy in recent year
— If Tianjin is about stabilising ties with China, Tokyo is about elevating India’s strategic partnership with Japan. New initiatives in defence, trade, and technology cooperation are likely to be announced in Tokyo.
— PM Modi’s talks with the Japanese leadership will give India a first-hand sense of the unfolding disruptions in Northeast Asia.
— Japan, South Korea, and Taiwan now face high tariffs, harsh demands for greater defence spending, and Trump’s extortionist pressures on transferring wealth and technology to the US.
— While still dependent on US protection, these allies are looking to explore greater self-reliance and diversification. After the focus in recent years on working with the US in Asia, India would want to enhance its independent role in Asia, creating space for expanded strategic cooperation with Japan and Northeast Asia more broadly.
Do You Know:
— Formal relations between Japan and India began in 1952. After the Second World War, instead of signing the multilateral San Francisco Peace Treaty, India opted for concluding a bilateral peace treaty with Japan, considering that honour and equality should be ensured for Japan to rejoin the international community.
— In 1951, when India hosted the first Asian Games in New Delhi, it invited Japanese athletes. This was one of the first occasions where the Japanese flag was hoisted after WWII.
— The year 2024 saw Japan’s total population decline by more than 908,000 people to around 120.65 million (or 12 crore), according to recent official data. A DW report stated that while this was the largest population drop since 1968, it was also the 16th straight year in which the Japanese population shrank.
— The origins of SCO lie in the “Shanghai Five” which was formed in 1996, consisting of China, Russia, Kazakhstan, Kyrgyzstan, and Tajikistan. With the dissolution of the USSR in 1991 into 15 independent countries, there were concerns in the region about extremist religious groups and ethnic tensions coming to the fore. To manage these issues, a grouping was created for cooperation on security matters.
— Building on this, SCO was established on June 15, 2001, in Shanghai as an international organisation, and also included Uzbekistan as a sixth member.
— Today, it consists of 10 member countries- India, Iran, Kazakhstan, China, Kyrgyzstan, Pakistan, Russia, Tajikistan, Uzbekistan, and Belarus. India and Pakistan became full members in 2017. Afghanistan and Mongolia hold Observer Status.
Other Important Articles Covering the same topic:
📍How the India-Japan friendship can help global peace, prosperity
📍UPSC Knowledge Nugget of the day: Shanghai Cooperation Organisation (SCO)
UPSC Prelims Practice Question Covering similar theme:
(1) Consider the following countries:
1. Japan
2. China
3. India
4. Russia
Which among the above are members of the Shanghai Cooperation Organisation?
(a) 1, 2 and 3 only
(b) 2, 3 and 4 only
(c) 1, 2, 3 and 4
(d) 2 and 3 only
Syllabus:
Preliminary Examination: Indian Polity and Governance – Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues
Mains Examination: General Studies-II: Constitution of India —historical underpinnings, evolution, features, amendments, significant provisions and basic structure.
What’s the ongoing story: The Supreme Court Constitution bench hearing the reference made by President Droupadi Murmu said Tuesday that the Centre’s argument that the Governor can withhold a Bill at the very outset and that the Bill would then lapse, would mean that they can also withhold Money Bills, which cannot be done in the normal course.
Key Points to Ponder:
— What is a Money Bill?
— Which Article in the constitution provides for the Money Bill?
— Who has the final authority to declare any Bill as the Money Bill?
— What is the role of Governor?
— What is the ongoing case in the Supreme Court on Presidential reference?
(Note: It is an ongoing case so keep track of the developments.)
Key Takeaways:
— The state of Maharashtra, meanwhile, told the bench – comprising Chief Justice of India B R Gavai and Justices Surya Kant, Vikram Nath, P S Narasimha, and A S Chandurkar – that “the notion that assent must follow once a law is made by the Assembly, is wrong.”
— President Murmu had made the reference in the wake of the decision by a two-judge bench of the court to fix time limits for the President and governors to act on Bills sent by state Assemblies.
— On Tuesday, Justice Narasimha referred to the Centre’s submission that the Governor can independently withhold a Bill, without returning it to the Assembly and then the Bill would then lapse.
— Solicitor General Tushar Mehta, appearing for the Centre, then referred to Article 207 (Special provisions as to financial Bills). The SG said that as per the Article, a Money Bill can be introduced only with the proposal of the Governor and therefore, there is no question of the Governor withholding a Money Bill, since it is introduced with his or her recommendation.
— Salve said there may be situations where the Money Bill passed by the legislature is different from the one recommended by the Governor, and then the latter can withhold assent.
Do You Know:
— According to Article 110 of the Constitution, a Bill can be designated as a money Bill if it exclusively deals with certain subjects. These include taxation, financial obligations of the Indian government, the consolidated fund (revenue received by the government through taxes and expenses incurred in the form of borrowings and loans) or contingency fund (money to meet unforeseen expenditure) of India, or “any matter incidental” to the subjects listed in the Article.
— Under Article 109, however, a Bill introduced as a money Bill only requires assent from the Lok Sabha and the Rajya Sabha merely has 14 days to consider the Bsill and return it with recommendations. The Lok Sabha may either accept or reject these recommendations and enact the money Bill into law.
— The Constitution empowers the Governor to summon, prorogue, or dissolve the State Assembly. However, the Governor can exercise this power only after due consultation with the Council of Ministers.
— As the executive head of the state, the Governor is entrusted with powers such as the appointment of the Chief Minister, Council of Ministers, Advocate General, State Election Commissioner, State Universities officials, Chairman and members of the State Public Service Commission and others.
— The Supreme Court, through its five-judge Constitution bench, is currently hearing the reference made by President Droupadi Murmu — after a two-Judge bench fixed timelines for the President and Governors to act on Bills sent by State Legislatures. The Supreme Court has asked the Centre if a Governor has unlimited power to withhold a Bill for time immemorial, then what is the safeguard for a duly elected legislature.
Other Important Articles Covering the same topic:
📍Governor vs. State: Supreme Court draws the line
📍Knowledge Nugget: Why is the Presidential Reference important for UPSC aspirants?
Previous year UPSC Prelims Question Covering similar theme:
(2) Regarding Money Bill, which of the following statements is not correct? (UPSC CSE 2018)
(a) A bill shall be deemed to be a Money Bill if it contains only provisions relating to imposition, abolition, remission, alteration or regulation of any tax.
(b) A Money Bill has provisions for the custody of the Consolidated Fund of India or the Contingency Fund of India.
(c) A Money Bill is concerned with the appropriation of moneys out of the Contingency Fund of India.
(d) A Money Bill deals with the regulation of borrowing of money or giving of any guarantee by the Government of India.
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, Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.
What’s the ongoing story: Amid the strain in ties over New Delhi’s import of Russian oil, and even as the United States has issued a notification to implement the penalty tariffs on India effective from Wednesday, the two countries discussed energy security and increasing defence cooperation under the India-US 2+2 Dialogue framework.
Key Points to Ponder:
— What is the 2+2 Dialogue framework?
— 2+2 dialogue between India and the US-Know the Background
— What is the history of India-US relations? How have India-US defence relations evolved?
— What are the areas of cooperation between India and the US?
— What are the key developments in India-US relations in the various sectors?
— What are the other countries with which India holds 2+2 Dialogue?
— Read about the US-India COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce & Technology), Logistics Exchange Memorandum of Agreement (LEMOA), Communications Compatibility and Security Agreement (COMCASA), Basic Exchange and Cooperation Agreement (BECA)
— What is QUAD and its significance?
Key Takeaways:
— According to a statement issued by the Ministry of External Affairs (MEA) on Tuesday evening, the two sides “looked forward to increasing defence cooperation, including signing a new 10-year ‘Framework for the India-US Major Defense Partnership’, as well as advancing defence industrial, science, and technology cooperation; operational coordination; regional cooperation; and information-sharing”.
— They also discussed trade and investment; energy security, including strengthening civil-nuclear cooperation; critical minerals exploration; counternarcotics and counterterrorism cooperation, it said, adding that “both sides looked forward to increasing defence cooperation, and build upon the progress made in these areas under the auspices of the US-India COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce & Technology) for the 21st Century and beyond”.
— The chairs reaffirmed their commitment to promoting a safer, stronger, and more prosperous Indo-Pacific region through the Quad, the MEA said. India is scheduled to host the Quad Leaders Summit this year, which besides the US, also has Japan and Australia as members.
— The dialogue concluded with the chairs expressing their appreciation for the productive meeting and eagerness to continue enhancing the breadth and depth of the bilateral relationship in a manner that benefits the people of India and the United States, the MEA said.
Do You Know:
— The 2+2 dialogue is a format of meeting of the foreign and defence ministers of India and its allies on strategic and security issues. A 2+2 ministerial dialogue enables the partners to better understand and appreciate each other’s strategic concerns and sensitivities taking into account political factors on both sides, in order to build a stronger, more integrated strategic relationship in a rapidly changing global environment.
— India has 2+2 dialogues with four key strategic partners: the US, Australia, Japan, and Russia. Besides Russia, the other three countries are also India’s partners in the Quad.
Other Important Articles Covering the same topic:
📍Explained: What is the ‘2+2’ format of dialogue between India and US?
Previous year UPSC Mains Questions Covering similar theme:
What is the significance of Indo-US defence deals over Indo-Russian defence deals? Discuss with reference to stability in the Indo-Pacific region. (UPSC CSE 2020)
‘What introduces friction into the ties between India and the United States is that Washington is still unable to find for India a position in its global strategy, which would satisfy India’s National self-esteem and ambitions’. Explain with suitable examples. UPSC CSE 2019)
Syllabus:
Preliminary Examination: Current events of national and international importance
Mains Examination: General Studies-III: Achievements of Indians in science & technology; indigenization of technology and developing new technology.
What’s the ongoing story: The Indian Navy on Tuesday (August 26) simultaneously commissioned two Nilgiri-class stealth guided-missile frigates, the INS Udaygiri and INS Himgiri, at Visakhapatnam.
Key Points to Ponder:
— What are stealth guided-missile frigates?
— What are the features of the INS Udaygiri and INS Himgiri?
— What is the destroyer category of warship?
— What is Project 17 Alpha?
— What are the recent ships commissioned by the Indian government?
Key Takeaways:
— The Ministry of Defence (MoD) has said that this is the first time that two major surface combatants from two different Indian shipyards were commissioned simultaneously.
— INS Udaygiri is the second ship of the Project 17A stealth frigates built by Mazagon Dock Shipbuilders Limited (MDL) in Mumbai. INS Himgiri is the first of the Project 17A ships constructed by Garden Reach Shipbuilders and Engineers (GRSE), Kolkata.
— In another major milestone for the Indian Navy, INS Udaygiri is the 100th ship designed by the Navy’s in-house Warship Design Bureau.
— Both ships are the result of an industrial ecosystem spanning over 200 Micro, Small, and Medium Enterprises (MSMEs), supporting approximately 4,000 direct jobs and more than 10,000 indirect jobs, the MoD has said.
— The year 2025 has, until now, witnessed the commissioning of several indigenous platforms including the destroyer INS Surat, the frigate INS Nilgiri, and the submarine INS Vaghsheer, all of which were constructed by MDL and commissioned together in Mumbai in January, and others including the Anti-submarine Warfare (ASW) Shallow Water Craft INS Arnala, and the Diving Support Vessel INS Nistar.
— INS Udaygiri is going to be part of the Eastern Command’s fleet, also referred to as the Sunrise Fleet. It is being commanded by Captain Vikas Sood, whose father served on board the erstwhile INS Udaygiri, which has the motto Sanyuktaha Paramojayaha – in togetherness there is great victory.
— INS Himgiri, which will serve under the Western Naval Command, has the motto Adrushyam Ajayam, which means “invisible and invincible”, suggesting that it is invisible on the battlefield and invincible in battle.
— Among the weapons and equipment fitted on this class of ships are Long Range Surface to Air Missiles (LRSAM), Eight Vertically launched Surface to Surface Brahmos supersonic cruise missiles, Barak 8 Anti aircraft missile, Light weight Anti-Submarine Torpedo, Indigenous Rocket Launcher (IRL), 127 mm Main Role Gun, two AK-630 rapid fire Guns, Multi Mission Surveillance Radar, Shakti Electronic Warfare Suite, Airborne Early Warning Radar, Surface Surveillance Radar and Sonar Humsa (NG).
— Udaygiri has been named after the mountain range in Andhra Pradesh. The erstwhile INS Udaygiri was commissioned in February 1976.
— While there is no particular mountain range named Himgiri, it primarily refers to the snow-clad mountains of the Himalaya range. The erstwhile INS Himgiri was commissioned in November 1974 and joined the Western Naval Command as the frontline warship.
Do You Know:
— The Nilgiri-class stealth frigates are being constructed under the codename Project 17 Alpha. They are follow-ons of the Shivalik class or Project 17 frigates that are currently active in service. The frigate commissioned in January, INS Nilgiri, was the first of seven frigates in Project 17A.
— Of the seven-member class of ships, four – Nilgiri, Udaygiri, Taragiri, and Mahendragiri – are being built by MDL, and three by GRSE (Himgiri, Dunagiri, and Vindhyagiri). Around 75 per cent of the orders for equipment and systems of the Nilgiri class have been given to indigenous firms, the MoD has said.
— The Nilgiri class of ships have been built using an “integrated construction” philosophy, which involves extensive pre-outfitting at the block stages to reduce the overall building periods.
— The hull of P17A ships is geo-symmetrically larger by 4.54 per cent as compared to P17 Shivalik-class ships, but still has a much smaller radar cross section, making it “sleek and stealthy”.
Other Important Articles Covering the same topic:
Previous year UPSC Prelims Question Covering similar theme:
(3) Which one of the following is the best description of ‘INS Astradharini’, that was in the news recently? (UPSC CSE 2016)
(a) Amphibious warfare ship
(b) Nuclear-powered submarine
(c) Torpedo launch and recovery vessel
(d) Nuclear-powered aircraft carrier
Syllabus:
Preliminary Examination: Current events of national and international importance.
Mains Examination: General Studies-III: Science and Technology- Achievements of Indians in science & technology; indigenization of technology and developing new technology; Awareness in the fields of IT and space.
What’s the ongoing story: The Indian Space Research Organisation (ISRO) successfully carried out its first Integrated Air Drop Test (IADT-1) on Sunday to evaluate the parachute-based deceleration system for the upcoming Gaganyaan mission. The system is critical for ensuring safe recovery of the crew module — the capsule in which astronauts sit during a human flight — during re-entry and landing.
Key Points to Ponder:
— What is the Gaganyaan mission and its significance?
— What are the challenges India faces in establishing a long-term human spaceflight program?
— What are the major achievements of ISRO in recent years?
— How is the space sector moving towards the Atmanirbhaar Bharat?
— Read about the Indian Space Research Organisation.
— What are the other important space missions of the ISRO?
Key Takeaways:
— The first crewed mission under the Gaganyaan programme is scheduled for 2027, and the first uncrewed mission is likely toward the end of this year.
— An air drop test recreates the final leg of a spacecraft’s journey back to Earth. An aircraft or helicopter drops the spacecraft from a height to test various systems under different circumstances. These include the deployment of the parachute system if the mission is aborted mid-flight, system performance when one parachute fails to open, and the spacecraft’s orientation and safety during splashdown.
— The test, however, cannot simulate actual re-entry scenarios as helicopters cannot carry spacecraft high enough. To create re-entry scenarios, sub-orbital or orbital flights carry the spacecraft outside Earth’s atmosphere.
— The test simulated a scenario in which the mission is aborted at the launch pad and the crew is ejected from the capsule. To execute this, a 4.8-tonne dummy crew module was dropped from a height of 3 kilometres by a Chinook helicopter.
— Upon release, the onboard avionics system autonomously commanded vehicle deceleration, which triggered the deployment of the parachute system, comprising 10 parachutes. The parachutes successfully decelerated the capsule to a safe splashdown speed.
— The test also verified the crew module’s orientation during splashdown and its subsequent recovery.
— In October 2023, ISRO carried out the Test Vehicle Abort Mission (TV-D1), which launched a single-stage test vehicle for sub-orbital flight with the crew module to demonstrate the performance of the crew escape system.
— After the success of TV-D1, ISRO is currently preparing to conduct a second test vehicle mission in the third quarter of 2025. The TV-D2 mission is being designed to simulate an abort scenario and demonstrate the Gaganyaan crew escape system at a more complex level than TV-D1.
— The first uncrewed mission, Gaganyaan-1 (G-1), which is scheduled for the fourth quarter of 2025, will demonstrate technology preparedness before the manned mission. The unmanned mission will carry an unpressurised crew module to space and back. The G-1 mission’s crew module will not have the Environment Control and Life Support System, which ensures an Earth-like environment inside the module.
Do You Know:
— Announced in 2018, Gaganyaan is one of India’s most ambitious space programmes. It is India’s maiden human spaceflight mission that was originally scheduled for 2022 but is now expected to happen in early 2027. A successful execution of this mission would put India in the company of the US, Russia and China.
— Group Captain Prasanth Balakrishnan Nair, Group Captain Ajit Krishnan, Group Captain Angad Pratap, and Wing Commander Shubhanshu Shukla are India’s astronauts-designate for Gaganyaan.
Other Important Articles Covering the same topic:
📍Major leap for Gaganyaan mission as crew module passes key re-entry test
📍What the success of Gaganyaan could mean for Indian science
Previous year UPSC Prelims Question Covering similar theme:
(4) With reference to India’s satellite launch vehicles, consider the following statements: (UPSC CSE 2018)
1. PSLVs launch the satellites useful for Earth resources monitoring whereas GSLVs are designed mainly to launch communication satellites.
2. Satellites launched by PSLV appear to remain permanently fixed in the same position in the sky, as viewed from a particular location on Earth.
3. GSLV Mk III is a four-staged launch vehicle with the first and third stages using solid rocket motors; and the second and fourth stages using liquid rocket engines.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 2 only
(d) 3 only
Syllabus:
Preliminary Examination: Economic and Social Development.
Mains Examination: General Studies-II, III: Government policies and interventions; Economic development, Government Schemes.
What’s the ongoing story: M Nagaraju writes- “Financial inclusion is meant to empower individuals and businesses, foster growth, reduce poverty, and promote social equality. A government-backed financial inclusion drive is important for a developing country like India. That was one of the reasons behind the Pradhan Mantri Jan Dhan Yojana (PMJDY) launched on August 28, 2014. It aimed to provide universal access to banking services and ensure that every household, particularly the marginalised, could participate in the formal financial system.”
Key Points to Ponder:
— What is the Pradhan Mantri Jan Dhan Yojana (PMJDY) and its objectives?
— What do you understand by the term “financial inclusion”?
— What is JAM trinity?
— What are the benefits of PMJDY?
— What is Unified Lending Interface?
— What are the issues and challenges faced by the Indian Banking System?
— What initiatives have been taken by the government to promote financial inclusion?
Key Takeaways:
— “PMJDY has grown into the world’s largest financial inclusion programme. Before PMJDY, only 59 per cent of Indian households and 35 per cent of adults had bank accounts. Eleven years since it was launched, almost 100 per cent of households and over 90 per cent of adults have a bank account. The informal credit systems that used to trap the marginalised in debt cycles have become relics.”
— “When PMJDY was launched, approximately 7.5 crore households did not have bank accounts. In 2018, we achieved household-level saturation and shifted our focus to covering all adults with bank accounts. As per the World Bank’s Findex report, account ownership in India in 2024 increased to 89 per cent with respect to individuals aged 15 years and more. The NSS survey 2022-23 states that 94.65 per cent of adults in the country own a bank account.”
— “The scheme has promoted digital transactions through RuPay cards. Over 38.7 crore RuPay cards have been issued. PMJDY accounts are being used not only for receiving DBT but also for savings and to provide access to micro-insurance and investment products.”
— “UPI and digital transactions have grown several-fold. This can also be attributed to the large number of PMJDY accounts. With an increase in average balances in Jan Dhan accounts, the PMJDY ecosystem can be expanded to facilitate investments. Artificial intelligence and natural language processing can help in voice-based transaction authorisations, doing away with the need for smartphones or internet connectivity. This has facilitated innovations in e-commerce with fast and reliable delivery systems in Tier 4 and Tier 5 centres.”
— “As PMJDY enters its 12th year, our focus is on sustaining and expanding its impact. The government has launched a financial inclusion saturation drive, and banks are organising camps to update KYC details, open new accounts, and promote micro-insurance and pension schemes. They are also working to reduce inactive accounts under PMJDY.”
Do You Know:
— The PMJDY was launched on August 28, 2014, as a national mission for financial inclusion. * The foremost objective of the PMJDY was to open a Basic Savings Bank Account for unbanked individuals. There was no requirement to maintain any minimum balance in PMJDY accounts, and these accounts earned interest on deposits like regular accounts.
— PMJDY account-holders were given RuPay debit cards.
— An accident insurance cover of Rs 1 lakh was available with RuPay cards issued to PMJDY account holders. The cover was enhanced to Rs 2 lakh for new PMJDY accounts opened after August 28, 2018.
— PMJDY accounts are also eligible for Direct Benefit Transfers (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), and the Micro Units Development & Refinance Agency Bank (MUDRA) scheme.
— The scheme, which is one of the components of the JAM trinity of PMJDY, Aadhaar, and mobile, has had a transformative impact on the financial and banking sectors of the economy.
Other Important Articles Covering the same topic:
📍Knowledge nugget of the day: PM Jan Dhan Yojana (PMJDY)
UPSC Prelims Practice Question Covering similar theme:
(5) With reference to the Pradhan Mantri Jan Dhan Yojana (PMJDY), consider the following statements:
1. The scheme provided an unprecedented boost to the government’s campaign for financial inclusion.
2. It was launched in 2016.
3. The objective of the PMJDY was to open a Basic Savings Bank Account for unbanked individuals.
4. These accounts are required to maintain any minimum balance in PMJDY accounts.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) Only three
(d) All four
Previous year UPSC Mains Question Covering similar theme:
Pradhan Mantri Jan Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion. (UPSC CSE 2016)
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| Prelims Answer Key |
| 1. (b) 2. (c) 3. (c) 4. (a) 5. (b) |
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