Chapter B — Economy & Banking

Coverage: Jan 2025 – Jun 2026. Sources: Union Budget 2025-26 & 2026-27, Economic Survey 2025-26, PIB, RBI MPC statements (Feb 2025–Feb 2026), SEBI, GST Council (56th meeting, Sep 2025), NITI Aayog, India Briefing, PRS, The Hindu, Indian Express, LiveMint, Business Standard.

Contents

1. Union Budget 2026-27 — headline numbers
2. Union Budget 2025-26 — recap (still tested for Prelims 2027)
3. Economic Survey 2025-26 — key projections
4. New Income Tax Act 2025 — slab architecture (effective 1 Apr 2026)
5. GST 2.0 — 56th GST Council, new slab structure (from 22 Sep 2025)
6. RBI Monetary Policy Trajectory (Feb 2025 → Feb 2026) — repo & CRR
7. RBI institutional updates — Governor Sanjay Malhotra, MPC composition
8. CPI inflation regime + new CPI base year (2024)
9. Banking sector health — GNPA at multi-decadal low
10. Insolvency and Bankruptcy Code Amendment + IBBI
11. Insurance — Sabka Bima Sabki Raksha Bill 2025 + 100% FDI
12. SEBI reforms — F&O risk framework, mutual fund disclosure, T+0 settlement
13. CBDC (e-Rupee) — pilot scale and offline mode
14. UPI internationalisation + India Stack abroad
15. India Semiconductor Mission 2.0 (Budget 2026-27 announcement)
16. PLI Scheme 2.0 — sectoral status
17. ECMS — Electronics Components Manufacturing Scheme
18. Biopharma SHAKTI — Strategy for Healthcare Advancement
19. National Critical Mineral Mission (NCMM) + MMDR Amendment
20. National Manufacturing Mission
21. PM Gati Shakti + National Logistics Policy update
22. Sagarmala, Bharatmala status
23. National Industrial Corridor Development Programme (NICDP) — 12 new projects 2025
24. National Sports Governance Act → economic dimension (sports economy)
25. Disinvestment & Asset Monetisation — NMP-II
26. 16th Finance Commission ToR & report
27. New FRBM target architecture — debt-to-GDP path
28. Cooperative sector — Tribhuvan Sahkari University Act, 2025
29. e-Shram, gig workers social security
30. India's external sector — CAD, forex reserves, rupee
31. India-UK FTA + India-EU FTA + India-USA Trade Deal updates
32. Foreign Direct Investment landscape — 2025-26 trends
33. Atmanirbhar shipping — Maritime laws (economic dimension)
34. Green & Blue economy — climate finance, sustainability bonds
35. Real Estate, REITs, InvITs — SEBI updates

▣ At the close: prelims facts strip + 15 MCQ block.

1. Union Budget 2026-27 — Headline Numbers

Why in News. Presented by FM Nirmala Sitharaman on 1 February 2026 in Parliament; Finance Bill 2026 passed by both Houses in March 2026.

Key facts.

Six interventions (Kartavyas) for sustained growth.

1. Scaling up manufacturing in 7 strategic & frontier sectors (incl. biopharma, electronics, semiconductors, EVs, defence).
2. Biopharma SHAKTI — ₹10,000 cr over 5 yrs (covered separately).
3. ISM 2.0 — ₹1,000 cr (FY 26-27) + ₹8,000 cr to ISM overall.
4. Power-sector reforms.
5. Urban-development push.
6. Financial-sector & regulatory deregulation.

Sectoral allocations (₹ cr, BE 2026-27).

• Transport: 5,98,520 · Defence: 5,94,585 · Rural Development: 2,73,108 · Home Affairs: 2,55,234 · Agri & Allied: 1,62,671 · Education: 1,39,289 · Energy: 1,09,029 · Health: 1,04,599 · Urban Dev: 85,522 · IT & Telecom: 74,560.

🔗 Static Link. Laxmikanth — Budget; FRBM; Ramesh Singh — fiscal policy.

⚠ UPSC Trap. Effective Capital Expenditure = capex + grants-in-aid for creation of capital assets to States. Effective Revenue Deficit = Revenue Deficit − grants for creation of capital assets.

🎯 Prelims Angle. "Consider the following statements about the Union Budget 2026-27: (1) Fiscal deficit is targeted at 4.3% of GDP. (2) Debt-to-GDP is targeted to 50 ± 1% by 2030. (3) Income-Tax Act 2025 becomes effective from this fiscal."

13. One-line summary. Budget 2026-27 — FD 4.3%; capex ₹12.22 L cr; ISM 2.0 launched; Biopharma SHAKTI ₹10k cr; Income Tax Act 2025 effective 1 Apr 2026.

2. Union Budget 2025-26 — Recap

Headline. FM Sitharaman, 1 February 2025.

Key facts.

• Total Expenditure: ₹50.65 lakh crore; Capex ₹11.21 lakh crore.
• Fiscal Deficit: 4.4% of GDP (BE & RE).
• ₹12 lakh zero-tax threshold under new regime (Section 87A rebate raised); standard deduction ₹75,000 for salaried.
• 4 engines of growth: Agriculture, MSMEs, Investment, Exports.
• National Manufacturing Mission launched.
• Makhana Board (Bihar), Bihar IIT Patna expansion.
• ₹500 cr Centre of Excellence in AI for Education.
• Saksham Anganwadi & Poshan 2.0 strengthened.
• Customs duty rationalisation — 7 tariff rates retained.

⚠ UPSC Trap. New tax regime is now default (since Budget 2023); old regime opt-in.

13. One-line summary. Budget 2025-26 — FD 4.4%; zero-tax up to ₹12 L; 4 engines (Agri, MSME, Investment, Exports); National Manufacturing Mission launched.

3. Economic Survey 2025-26

Tabled. 29 January 2026 by FM (CEA: V. Anantha Nageswaran).

Key projections.

• Real GDP 2026-27: projected 6.8–7.2%.
• Real GDP 2025-26 (FAE): 7.4% (vs 6.5% in 2024-25).
• Potential growth: ~7%, highest among major economies.
• GVA 2025-26 (FAE): 7.3%.
• Private Final Consumption Expenditure (PFCE) share rose to 61.5% of GDP — highest since 2003-04.
• GNPA at 2.2% in Sep 2025 — multi-decadal low.
• Centre's revenue receipts rose to 9.2% of GDP in FY25 (PA).
• Effective capital expenditure rose from avg 2.7% to 4% of GDP in 2024-25.

Themes & recommendations.

• "Entrepreneurial State" — augment State capacity, structure uncertainty for innovation.
• Targeting debt-to-GDP (not annual fiscal deficit) under FRBM until 2031.
• India's private R&D share 41% vs China's 77% — push private R&D.
• Promote frugal AI, climate adaptation financing, deregulation, MSME global value chain integration.
• Quality Control Orders (QCOs) — to be industry-aligned (not blanket).
• Plan to reduce CPSE stake to 26% for asset monetisation.

🔗 Static Link. NCERT Macroeconomics; Ramesh Singh — Sectoral composition, FRBM.

⚠ UPSC Trap. Economic Survey is prepared by DEA (Department of Economic Affairs) under guidance of the Chief Economic Adviser — not by FM directly. CEA is not a constitutional or statutory office.

11. Prelims facts.

• Survey FY26 GDP: 7.4%
• Potential growth: ~7%
• Debt-to-GDP target: 50 ± 1% by 2030
• GNPA Sep 2025: 2.2%
• PFCE share: 61.5%
• "Entrepreneurial State" framing
• Two Surveys (Survey + Statistical Appendix)

13. One-line summary. Survey 2025-26 — 7.4% growth FY26; 6.8-7.2% FY27; "Entrepreneurial State"; debt-to-GDP target replaces annual FD target.

4. New Income Tax Act 2025 — Slab Architecture

Effective. 1 April 2026 (replaces Income-Tax Act, 1961).

New Tax Regime slabs (default) — unchanged in Budget 2026-27.

• Section 87A rebate → effective zero tax up to ₹12 lakh (₹12.75 lakh for salaried, after ₹75,000 standard deduction).
• Surcharge cap 25% in new regime (vs 37% old).
• Education cess 4%.
• Concept of "Tax Year" replaces Previous Year + Assessment Year.
• Revised return deadline extended to 31 March of AY (with nominal fee).
• Filing deadlines staggered: 31 July (salaried), 31 August (non-audit business).
• New chapter on Virtual Digital Assets retained.
• Securities Transaction Tax (STT) hiked on derivatives (Budget 2024 measure retained).

⚠ UPSC Trap. This is not the 2009 Direct Tax Code; it is a clean rewrite drawing from DTC. Old regime continues to be opt-in.

13. One-line summary. New IT Act 2025 effective 1 Apr 2026; 7-slab new regime; zero tax up to ₹12 L (₹12.75 L salaried); Tax Year concept.

5. GST 2.0 — 56th GST Council & New Slab Structure

Why in News. 56th GST Council meeting chaired by FM Sitharaman, 3 September 2025, recommended overhaul; new rates effective 22 September 2025.

Old structure. 4 slabs — 5%, 12%, 18%, 28% + cess. New structure. 2 core slabs — 5% (merit) and 18% (standard) + a 40% rate for luxury/sin goods.

Key changes (effective 22 Sep 2025).

• 12% slab abolished; most items moved to 5%.
• 28% slab abolished (except sin/demerit goods relocated to 40%).
• 40% rate = luxury cars, demerit goods, online gaming, etc.
• Cigarettes, zarda, unmanufactured tobacco, beedi — old rates + cess continue until compensation-cess loan obligations fully discharged.
• Insurance premiums — individual life & health insurance moved to 0% / exempt category (long-pending reform).
• Renewable energy equipment, medical devices, cement rates rationalised lower.
• Inverted duty structures corrected in textiles, fertilisers.

Performance dataline.

• GST taxpayer base: 66.5 lakh (2017) → 1.51 crore (2025).
• FY 24-25 collections: ₹22.08 lakh crore.
• FY 25-26 net collections: ₹19.35 lakh crore (cumulative).
• March 2026 net GST: ₹1.78 lakh crore (+8.2% YoY).

🔗 Static Link. 101st Constitutional Amendment Act 2016; Article 246A, 269A, 279A; GST Council = constitutional body.

⚠ UPSC Trap. GST Council = Article 279A (not 280); decisions require ¾ weighted majority (Centre 1/3 weight, States 2/3 weight collectively). Petroleum products, alcohol still outside GST.

🎯 Prelims Angle. "The 56th GST Council meeting (2025) recommended which of the following? (1) Abolition of 12% & 28% slabs (2) Creation of 40% slab for luxury/sin (3) Exemption of individual life & health insurance."

13. One-line summary. GST 2.0 effective 22 Sep 2025 — 2 slabs (5%, 18%) + 40% luxury/sin; insurance exempt; corrects inverted duty.

6. RBI Monetary Policy Trajectory (Feb 2025 → Feb 2026)

Calendar of MPC actions.

Cumulative cut FY 25-26: 125 bps. Repo at lowest since July 2022.

Current policy corridor (as of Apr 2026).

• Repo: 5.25%
• SDF (floor): 5.00%
• MSF (ceiling): 5.50%
• Bank Rate: 5.50%
• Reverse Repo: 3.35% (now largely symbolic)
• CRR: 3.00% (cut 100 bps from 4%, staggered Sep–Nov 2025)
• SLR: 18.00%

Inflation/Growth projections (Feb 2026 MPC).

• FY 25-26 CPI: 2.1% (lowest in series since data started).
• FY 25-26 GDP: 7.4% (FAE).
• Q1 FY27 GDP: 6.9%; Q2: 7.0%.
• Q1 FY27 CPI: 4.0%; Q2: 4.2%.

MPC composition. 6 members — 3 RBI (Governor + DG + one nominee) + 3 government-nominated experts. RBI Governor chairs; casting vote with Governor.

🔗 Static Link. RBI Act 1934 (as amended 2016); Inflation target 4% ± 2% (band 2–6%).

⚠ UPSC Trap. Repo = RBI lends to banks. SDF = floor; replaced the old reverse repo as floor in April 2022. CRR uplift goes to Cash Reserve (no interest); SLR to government securities (interest-bearing).

11. Prelims facts.

• Repo (Jun 2026): 5.25%
• CRR: 3.00% (after 100 bps cut Sep-Nov 2025)
• SDF: 5.00%; MSF: 5.50%
• Inflation target: 4% ± 2%
• MPC: 6 members; Governor casts deciding vote
• CPI Oct 2025: lowest in series; Dec 2025: 1.3%

13. One-line summary. FY26 cumulative repo cut 125 bps to 5.25%; CRR 3%; stance "Neutral"; CPI 2.1% FY26; GDP 7.4%.

7. RBI Institutional Updates — New Governor

Sanjay Malhotra assumed office as 26th Governor of RBI in December 2024, succeeding Shaktikanta Das. First MPC chaired Feb 2025 (rate cut cycle began).

⚠ UPSC Trap. First Governor: Sir Osborne Smith (1935). First Indian Governor: C.D. Deshmukh (1943). Longest-serving (post-independence): Benegal Rama Rau. RBI founded 1 April 1935; nationalised 1949.

13. One-line summary. Sanjay Malhotra = 26th RBI Governor (Dec 2024–); began rate-cut cycle Feb 2025.

8. CPI Inflation Regime + New CPI Base Year

Key facts.

• Inflation target: 4% ± 2% (statutorily fixed; current cycle valid till 31 Mar 2026; review pending).
• Base year change: NSO released CPI base year 2024 (replacing 2012 base year) — effective for releases from 2026.
• New series uses HCES 2022-23 + HCES 2023-24 consumption baskets.
• CPI October 2025 = lowest level in this data series (~0.7% headline).

⚠ UPSC Trap. RBI targets CPI-Combined (not WPI). WPI still released by Office of Economic Adviser, DPIIT. CPI by NSO under MoSPI.

13. One-line summary. CPI target 4% ± 2%; CPI base year shifted from 2012 → 2024; CPI 2.1% projected FY26.

9. Banking Sector Health — GNPA at Multi-Decadal Low

Key facts.

• GNPA (Sep 2025): 2.2% — lowest in multi-decade.
• Net NPA: ~0.5%.
• CRAR (capital adequacy): well above 16% (regulatory min 11.5%).
• PCR (Provision Coverage Ratio): ~78%.
• Bank credit growth: ~12–13% YoY (FY26).
• Public sector banks: collectively profitable for 4th straight year.

Recent reforms.

• Expected Credit Loss (ECL) framework — phased adoption.
• Project finance norms revised — provisioning during construction phase reduced from 5% (draft) to 1–1.25% (final, 2025).
• PSL (Priority Sector Lending) guidelines revised — small farmer credit limit raised.

🔗 Static Link. Basel III; Banking Regulation Act 1949; Insolvency & Bankruptcy Code 2016; PCA Framework.

13. One-line summary. GNPA 2.2% Sep 2025 (multi-decadal low); ECL framework being phased in; project-finance norms eased 2025.

10. IBC Amendment + IBBI

(Covered in detail in Chapter A, Topic 14.) Economic-side facts:

• IBC recovery rate: ~31% (cumulative, Mar 2026); avg resolution time ~600 days (vs target 330).
• Cross-border insolvency based on UNCITRAL Model Law introduced.
• Group insolvency and expanded pre-pack added.
• IBBI strengthened; CIRP for personal guarantors rolled out.

13. One-line summary. IBC reforms 2025-26 — cross-border (UNCITRAL), group insolvency, pre-pack expansion; recovery ~31%.

11. Insurance — Sabka Bima Sabki Raksha Bill 2025 + 100% FDI

Why in News. Budget 2025-26 announced raising FDI in insurance from 74% to 100% (with conditions); legislation through Sabka Bima Sabki Raksha Bill, 2025 (PRS tracker; in Committee as of mid-2026).

Key facts.

• 100% FDI allowed only for companies investing entire premium in India.
• Composite licence proposed — single insurer can offer life + health + general (vs sectoral silos under Insurance Act 1938).
• Bima Sugam, Bima Vahak, Bima Vistaar — trinity of IRDAI digital initiatives.
• GST on individual life & health insurance exempt (from 22 Sep 2025) — significant affordability push.

🔗 Static Link. IRDAI Act 1999; Insurance Act 1938; LIC Act 1956.

⚠ UPSC Trap. IRDAI HQ: Hyderabad. Bima Sugam = online marketplace; Bima Vahak = village-level women-led intermediary; Bima Vistaar = bundled insurance product.

13. One-line summary. Sabka Bima Sabki Raksha Bill 2025; FDI 74→100%; composite licence; GST exempt on life/health insurance; Bima Sugam/Vahak/Vistaar.

12. SEBI Reforms (2025–26)

Key facts.

• F&O Risk Framework (Oct 2024 → fully effective 2025-26): index derivatives min contract size ₹15 lakh; weekly index expiry capped to one per exchange; upfront premium collection from buyers; intra-day position monitoring.
• T+0 settlement in equity cash market — optional beta operational across 25 scrips (2024) → expanded list 2025-26; instant settlement in pilot.
• Mutual Fund Lite framework — simpler entry norms for passive-only AMCs.
• REIT/InvIT reforms — lower minimum subscription (SM REITs allow ₹10 lakh).
• Disclosure of related-party transactions — strict timelines (within 2 days of approval).
• Algo trading retail framework notified 2024-25.

🔗 Static Link. SEBI Act 1992; SEBI is statutory (1992 Act); HQ Mumbai.

⚠ UPSC Trap. SEBI Chair (2025-26): Tuhin Kanta Pandey (took over from Madhabi Puri Buch).

13. One-line summary. SEBI 2025-26 — F&O tightened; T+0 expanded; MF Lite; SM REITs; Tuhin Kanta Pandey heads SEBI.

13. CBDC (e-Rupee)

Key facts.

• e-Rupee (₹) = legal tender; retail (e-₹-R) pilot since Dec 2022; wholesale (e-₹-W) since Nov 2022.
• Offline mode rolled out 2025 — proximity-based transactions without internet.
• Programmable, expiring, and interoperable with UPI since 2024.
• Cumulative retail CBDC volume: ~5–6 cr transactions by mid-2026.
• Trade-settlement pilots in e-₹-W explored with select foreign central banks.

⚠ UPSC Trap. CBDC is a sovereign liability of RBI (unlike commercial bank money); issued under RBI Act 1934 amended via Finance Act 2022 which defined CBDC as "Bank Note".

🔗 Static Link. Cryptocurrency vs CBDC distinction; Reserve Bank of India Act 1934; FEMA.

13. One-line summary. e-Rupee (CBDC) — retail + wholesale + offline (2025); RBI liability; UPI-interoperable.

14. UPI Internationalisation + India Stack Abroad

Key facts.

• UPI: ~16-17 billion monthly transactions by mid-2026; ~₹24 lakh crore monthly value.
• NIPL (NPCI International Payments Ltd) has rolled UPI to: Singapore (PayNow), Bhutan, Nepal, UAE, Mauritius, Sri Lanka, France (selective merchants), Maldives, Namibia (under deployment), Peru (under deployment).
• India Stack — Aadhaar + UPI + DigiLocker + Account Aggregator + ONDC + e-Sign — being exported as DPI (Digital Public Infrastructure).
• One Sun One World One Grid (OSOWOG), MOSIP (Modular Open Source Identity Platform) — Aadhaar-derived export.
• G20 DPI Framework endorsed under India's 2023 presidency continues to expand 2025-26.

⚠ UPSC Trap. NPCI is the umbrella organisation; NIPL is its international arm. RuPay, IMPS, BBPS, FASTag, AePS — all NPCI products.

13. One-line summary. UPI in 8+ countries; India Stack/DPI exported via MOSIP & NIPL; G20 DPI framework endorsed.

15. India Semiconductor Mission 2.0

Why in News. Announced in Budget 2026-27; ₹1,000 cr for FY 26-27; ₹8,000 cr to ISM overall — largest single-year outlay.

Key facts.

• ISM 1.0 (2021) covered fabs, display fabs, compound semiconductors, ATMP/OSAT; full $10 bn outlay committed.
• 13 approved projects (12 under ISM + 1 under SPECS) operational/under construction as of May 2026 across 6 states; cumulative investment ₹1.64 lakh crore.
• ISM 2.0 focus: equipment & materials, full-stack Indian IP, secure & defence chips, advanced packaging.
• Includes AI-Enabled Semiconductor Engineering Mission.
• Operational facilities (as of May 2026): Micron ATMP Sanand (Feb 2026), Kaynes Semicon OSAT Sanand (Mar 2026), CG Power-Renesas ATMP Sanand, Tata-PSMC Dholera fab (production commencing Dec 2025 → full ops 2026-27), Tata Electronics ATMP Assam, HCL-Foxconn (Jewar/YEIDA, UP), Suchi Semicon (Surat), CRYSTAL MATRIX (Dholera), 3DGS Bhubaneswar (first 3D packaging).
• Tata–ASML agreement (May 2026) — front-end fab in Gujarat.

Sub-schemes.

• SPECS — Scheme for Promotion of Manufacturing of Electronic Components & Semiconductors.
• DLI — Design Linked Incentive (chip design startups).
• C2S — Chips-to-Startup program.
• SCL Mohali — public-sector design house upgrade.

🔗 Static Link. MeitY structure; PLI scheme; National Policy on Electronics 2019.

⚠ UPSC Trap. ISM = nodal agency under MeitY; not statutory; established under Digital India Corporation (Sec 8 company). ISA (India Semiconductor Association) is industry body — distinct.

11. Prelims facts.

• ISM 1.0 outlay: $10 bn fully committed
• ISM 2.0: Budget 2026-27
• States with semi projects: Gujarat, UP, Assam, Karnataka, Odisha, Rajasthan
• Tata-PSMC Dholera = India's first true fab
• 3DGS Bhubaneswar = India's first 3D packaging
• Kaynes Sanand = first ISM unit in commercial production

13. One-line summary. ISM 2.0 launched Budget 2026-27; 13 projects, ₹1.64 L cr; Dholera fab + Sanand cluster; Tata-ASML front-end fab MoU May 2026.

16. PLI Scheme 2.0 — Sectoral Status

Key facts.

• PLI scheme covers 14 sectors; total budget outlay ₹1.97 lakh crore since 2020.
• Sectors: Mobile phones & electronics, Pharma, Medical devices, Auto & Auto components, Advanced Chemistry Cell (ACC) Batteries, Textile (technical & MMF), Specialty steel, Telecom & networking products, Drones, Food processing, White goods (AC/LED), Solar PV modules, IT hardware, Semiconductors.
• PLI for Toy industry (new, 2025) and PLI for Pharma APIs expansion in pipeline.
• IT Hardware PLI: HP, Dell, Asus, Lenovo participating; FY 25-26 critical implementation year.

⚠ UPSC Trap. PLI ≠ Make in India alone; PLI is output-linked; the predecessor M-SIPS was input/capex-linked.

13. One-line summary. PLI in 14 sectors; ₹1.97 L cr outlay; new PLI for toys 2025; IT hardware PLI critical year FY 25-26.

17. ECMS — Electronics Components Manufacturing Scheme

Why in News. Cabinet approved 2025; outlay ~₹22,919 crore over 6 years.

Key facts.

• Targets passive components, multi-layer PCBs, lithium-ion battery cells (electronics-grade), camera modules, displays.
• Bridges the gap between finished electronics (PLI) and semiconductor fab (ISM).
• Aim: reduce import dependence on China for sub-assembly.
• Implementing ministry: MeitY.

13. One-line summary. ECMS (~₹22,919 cr) — PCBs, passives, camera modules, battery cells; bridges PLI ↔ ISM.

18. Biopharma SHAKTI

Strategy for Healthcare Advancement through Knowledge, Technology and Innovation.

Key facts.

• Announced Budget 2026-27; outlay ₹10,000 crore over 5 years.
• Aim: India = global biopharma manufacturing hub.
• Coverage: vaccines, biologics, biosimilars, mRNA platforms, gene & cell therapies.
• Implementing: Department of Pharmaceuticals (DoP) + DBT.
• Builds on PRIP (Promotion of Research & Innovation in Pharma-MedTech) scheme and BIRAC.

13. One-line summary. Biopharma SHAKTI — ₹10k cr over 5 yrs; biologics/vaccines/cell therapies; Budget 2026-27; DoP + DBT.

19. National Critical Mineral Mission (NCMM)

Why in News. Launched Jan 2025; backed by MMDR Amendment Act 2025.

Key facts.

• Outlay: ₹16,300 cr (Centre) + ₹18,000 cr (PSU investment) over 7 years.
• Targets exploration, acquisition, recycling of 30 critical minerals (lithium, cobalt, graphite, nickel, REEs, etc.).
• Empowers Geological Survey of India (GSI) for extensive exploration.
• KABIL (Khanij Bidesh India Ltd) — overseas acquisition (JV of NALCO, HCL, MECL).
• Lithium reserves: Reasi, J&K (5.9 mn tonnes inferred, 2023); second find in Degana, Rajasthan (2024).
• India in Minerals Security Partnership (MSP) since 2023.

🔗 Static Link. MMDR Act 1957; Mining sector contribution to GDP ~2.3%.

⚠ UPSC Trap. 30 critical minerals list by MoM 2023. Atomic minerals (uranium, thorium, beryllium) are reserved for Centre (Schedule I of Atomic Energy Act).

13. One-line summary. NCMM (Jan 2025); ₹16.3k+18k cr; 30 critical minerals; MMDR 2025 backing; KABIL + MSP membership.

20. National Manufacturing Mission

Announced. Budget 2025-26.

Key facts.

• Covers small, medium, and large industries.
• 5 focus areas: (a) ease & cost of doing business; (b) future-ready workforce; (c) vibrant MSME sector; (d) technology availability; (e) quality products.
• Sectoral focus 2025-26 highlight: Clean Tech — solar PV cells & modules, EV batteries, wind turbines, electrolysers, grid-scale batteries, high-voltage transmission equipment.
• Operationally implemented via DPIIT + MeitY + MoCI synergy.

13. One-line summary. National Manufacturing Mission (Budget 2025-26) — 5 focus areas; clean-tech anchor; DPIIT-led.

21. PM Gati Shakti + National Logistics Policy (Update)

Status (2025-26).

• Gati Shakti National Master Plan (Oct 2021) — over 1,600+ data layers integrated.
• All 44 ministries onboarded; 36 States/UTs on board.
• NPG (Network Planning Group) has evaluated ~250+ infra projects.
• NLP (National Logistics Policy, 2022) target: bring logistics cost from ~13–14% of GDP to ~8% by 2030.
• LEADS Index (Logistics Ease Across Different States) — Gujarat, Haryana, Maharashtra in Achievers (2024).
• India's LPI 2023 rank: 38 (out of 139); improvement on infrastructure score.

🔗 Static Link. Multi-Modal Logistics Parks (MMLPs); ULIP (Unified Logistics Interface Platform).

13. One-line summary. Gati Shakti — 1,600+ data layers; NLP target 8% of GDP by 2030; LEADS Index; LPI rank 38 (2023).

22. Sagarmala & Bharatmala — Status

Sagarmala (2015).

• 802 projects worth ₹5.5 lakh crore identified for implementation by 2035 across port modernisation, port-led industrialisation, port connectivity, coastal community development.
• Coastal Shipping Act 2025 enabling cabotage relaxation.
• Maritime Amrit Kaal Vision 2047 — long-term blueprint.

Bharatmala Pariyojana (2017).

• Phase 1: 34,800 km of National Highways targeted; ~85% awarded; ~70% completed by 2026.
• Phase 2 under planning.

Sagarmala 2.0 announced in Budget 2025-26 with focus on ship-building & ship-breaking incentives.

13. One-line summary. Sagarmala 802 projects; Bharatmala Phase 1 ~70% complete (2026); Maritime Amrit Kaal Vision 2047.

23. National Industrial Corridor Development Programme (NICDP)

Why in News. Cabinet Committee on Economic Affairs approved 12 new projects worth ₹28,602 crore across 10 states in March 2025.

Key facts.

• Created in 2008; restructured 2020.
• Six existing corridors: DMIC (Delhi-Mumbai), CBIC (Chennai-Bengaluru), AKIC (Amritsar-Kolkata), ECEC (East Coast Economic Corridor), BMIC (Bengaluru-Mumbai), VCIC (Vizag-Chennai Industrial Corridor).
• NICDIT = National Industrial Corridor Development & Implementation Trust (executes).
• 12 projects (2025) include sites in Khurpia (Uttarakhand), Rajpura-Patiala (Punjab), Dighi (Maharashtra), Palakkad (Kerala), Agra & Prayagraj (UP), Gaya (Bihar), Zaheerabad (Telangana), Orvakal & Kopparthy (AP), Jodhpur-Pali (Rajasthan), Ganganagar (Rajasthan).

13. One-line summary. NICDP — 12 new projects ₹28,602 cr (Mar 2025) across 10 states; 6 corridors (DMIC, CBIC, AKIC, ECEC, BMIC, VCIC); NICDIT executes.

24. National Sports Governance Act — Economic Dimension

Covered in Chapter A (legal). Economic dimension: positions India for 2036 Olympic bid; statutorisation expected to unlock private sponsorship and ESG-linked sports finance.

13. One-line summary. Sports economy formalised via NSGA 2025; 2036 Olympic bid backdrop.

25. Disinvestment & Asset Monetisation

Key facts.

• NMP-I (National Monetisation Pipeline 2021-25): ₹6 lakh crore target; ~70% achieved.
• NMP-II (2025-30) in formulation — focus on land assets, roads, telecom towers, power transmission.
• CPSE stake reduction to 26% planned (Economic Survey 2025-26).
• LIC IPO (2022) remains largest; IDBI Bank strategic disinvestment advanced 2025-26; CONCOR, Shipping Corp of India pipelines slipped.
• DIPAM (Department of Investment & Public Asset Management) under MoF runs the process.

13. One-line summary. NMP-I ~70% achieved; NMP-II 2025-30 in works; CPSE stake target 26%; DIPAM-led.

26. 16th Finance Commission

(Covered Chapter A, Topic 29.) Economy-side facts:

• Chair: Arvind Panagariya; Member-Secretary: Ritvik Pandey.
• Term: 1 April 2026 – 31 March 2031.
• Article 280.
• 15th FC had recommended 41% vertical devolution; 16th FC report (2026) maintained broadly similar share.
• Special emphasis on disaster management financing and local body grants (~₹4.36 lakh crore for local bodies under 15th FC).

13. One-line summary. 16th FC (Panagariya) report 2026-31; Article 280; vertical devolution ~41%; disaster + local body finance focus.

27. New FRBM Architecture — Debt-to-GDP Path

Key facts.

• Budget 2025-26 + Economic Survey 2025-26 confirmed: Centre will target debt-to-GDP instead of annual fiscal-deficit targets under FRBM (provisional, till 2031).
• Path: Debt/GDP from ~55-56% (RE 2025-26) → 50 ± 1% by 2030.
• Original FRBM Act 2003 mandated 3% fiscal deficit, 0% revenue deficit by FY 2008-09; missed and re-set multiple times.
• N.K. Singh Committee (2017) recommended debt-to-GDP anchor (Centre 40%, States 20%) — now operationalised.

⚠ UPSC Trap. FRBM Act covers Centre only; States have their own Fiscal Responsibility Acts. Effective Revenue Deficit introduced via FRBM amendments 2012.

13. One-line summary. FRBM shift — debt-to-GDP (not annual FD) is anchor till 2031; 50±1% by 2030; N.K. Singh Committee operationalised.

28. Cooperative Sector — Tribhuvan Sahkari University Act, 2025

Why in News. Assented Mar 2025; first national-level cooperative university.

Key facts.

• Named after Tribhuvandas Patel, founder of Amul (Kaira District Cooperative Milk Producers' Union).
• Located: Anand, Gujarat.
• Ministry: Ministry of Cooperation (new ministry, July 2021).
• Cooperatives constitutional status: 97th Amendment 2011 (Part IX-B; Articles 243-ZH to 243-ZT; right to form cooperative society added as fundamental right under Article 19(1)(c)).

🔗 Static Link. Cooperative movement; PACS (Primary Agricultural Credit Societies); NABARD.

⚠ UPSC Trap. SC in Rajendra N. Shah v UoI (2021) struck down parts of 97th Amendment dealing with State-level cooperatives (federalism issue) but upheld fundamental-right amendment.

13. One-line summary. Tribhuvan Sahkari University (Anand, Gujarat) — first national cooperative university; Min of Cooperation; 97th Amendment backbone.

29. e-Shram & Gig-Worker Social Security

Key facts.

• e-Shram portal (Aug 2021) — registrations crossed 30 cr+ by mid-2026.
• Code on Social Security 2020 §141 mandates aggregator contribution (1–2% of turnover, capped at 5% of payments to gig workers) towards a fund.
• National Social Security Board operational under MoLE.
• e-Shram one-stop rolled out — health insurance + accident cover.
• PM-SYM (Pradhan Mantri Shram Yogi Maan-dhan) and NPS Traders also linked.

13. One-line summary. e-Shram 30 cr+ registrations; gig-worker social security via aggregator contribution under SS Code 2020 §141.

30. External Sector — CAD, Forex, Rupee

Key facts (FY 25-26).

• CAD: ~0.7–1.2% of GDP (low; helped by services & remittances).
• Remittances: India world's #1 — ~$135 bn (2024); expected ~$140+ bn (2025).
• Forex Reserves: all-time high crossed ~$704 bn (Sep 2024); ~$685–700 bn corridor in 2025-26.
• RBI FX forward book: ~$66 bn (Nov 2025).
• Rupee: traded ~83–88/USD through FY26; depreciation phase amid global dollar strength.
• Goods trade deficit: persistent, partially offset by services surplus (~$155 bn).

🔗 Static Link. Balance of Payments; FEMA 1999; FCRA 2010.

⚠ UPSC Trap. Forex reserves components: Foreign Currency Assets (largest), Gold, SDR, Reserve Position in IMF.

13. One-line summary. CAD ~1% GDP; remittances ~$135 bn (#1); forex ~$685-700 bn; rupee 83-88/USD FY26.

31. Trade Deals — UK, EU, USA (2025-26)

India-UK FTA (CETA) — signed July 2025, ratified 2026.

• 99% Indian exports → zero duty into UK.
• 90% of UK tariff lines reduced; whisky, automotive, services concessions.
• Double Contribution Convention (no double social-security payments for 3 years).

India-EU FTA.

• Negotiations advanced through 2025-26; carbon border adjustment mechanism (CBAM) friction; expected closure 2026.

India-USA Mini Trade Deal (2025-26).

• Bilateral Trade Agreement first tranche signed; agriculture (corn, dairy) frictions; MTCR/Wassenaar/Australia Group membership intact (NSG entry pending).
• Tariff disputes — US imposed tariffs on Indian goods (2025-26) including pharma; India retaliated on selected items.

🔗 Static Link. WTO; Doha Round; ASEAN-India FTA (under review).

13. One-line summary. India-UK FTA signed Jul 2025; India-EU FTA advancing; India-US Mini Deal first tranche; CBAM friction with EU.

32. FDI Landscape FY 25-26

Key facts.

• FDI equity inflows (FY 25-26): ~$50-55 bn; total FDI ~$70 bn.
• Top sectors: Services, Computer Software & Hardware, Trading, Telecom, Construction.
• Top source countries: Singapore, Mauritius, USA, UAE, Netherlands, Japan.
• 100% FDI allowed in Insurance (with conditions, 2025); Space sector (sub-routes) automatic up to 74-100% per category; Defence up to 74% automatic.
• Cumulative FDI 2000-2026: ~$1.05 trillion.

13. One-line summary. FDI FY 25-26 ~$70 bn; top source Singapore; sector top services; insurance 100% FDI; cumulative >$1 tn.

33. Atmanirbhar Shipping (Economic)

(Covered Chapter A.) Economic dimension:

• Maritime Development Fund (MDF) ₹25,000 cr proposed Budget 2025-26.
• Shipbuilding clusters in Gujarat, Tamil Nadu, AP, Odisha.
• Cabotage relaxation under Coastal Shipping Act 2025.

13. One-line summary. MDF ₹25,000 cr; cabotage relaxation; shipbuilding clusters; Maritime Amrit Kaal Vision 2047.

34. Green & Blue Economy

Key facts.

• Sovereign Green Bonds — total issued ~₹40,000 cr since 2023; FY 25-26 fresh issuance ~₹20,000 cr.
• Climate Finance Taxonomy — draft 2025; final notification awaited.
• Blue economy contribution to GDP target: ~4% (current ~3%).
• MISHTI (Mangrove Initiative for Shoreline Habitats & Tangible Incomes) — 540 sq km mangrove restoration target.
• PM-PRANAM — promotes balanced fertiliser use, alternative fertilisers.
• Bharat Carbon Market — Carbon Credit Trading Scheme (CCTS) — registry operational, first compliance cycle FY 26-27.

🔗 Static Link. Environment Chapter (4); Energy Conservation (Amendment) Act 2022.

13. One-line summary. Sovereign Green Bonds; CCTS operational; MISHTI 540 sq km; Blue economy target 4% GDP.

35. Real Estate / REITs / InvITs / SM REITs

Key facts.

• REITs in India: 5 listed (incl. Embassy, Mindspace, Brookfield, Nexus Select).
• SM REITs (Small & Medium REITs) — SEBI framework (Mar 2024) enables ₹50-500 cr asset pools; minimum subscription ₹10 lakh.
• InvITs: ~25 registered; PowerGrid, IRB, NHAI's NIIT.
• NaBFID (National Bank for Financing Infrastructure & Development) — became fully operational 2025-26; ₹1 lakh cr+ sanctions cumulative.

🔗 Static Link. Infrastructure finance; SEBI Act 1992.

13. One-line summary. REITs (5 listed); SM REITs min ₹10 L; NaBFID full ops 2025-26 ₹1 L cr+ sanctions.

📌 Economy — Consolidated Prelims Facts Strip

🎯 Economy — Practice MCQs (Prelims Standard)

Q1. Consider the following about the Union Budget 2026-27:

1. Fiscal deficit is targeted at 4.3% of GDP.
2. The Centre will target an annual fiscal-deficit anchor under FRBM until 2031.
3. The debt-to-GDP target is 50 ± 1% by 2030.

Which are correct? (a) 1 only (b) 1 and 3 (c) 2 and 3 (d) 1, 2 and 3 Ans: (b). Statement 2 is wrong — Centre has shifted to debt-to-GDP anchor till 2031, replacing annual FD targets.

Q2. With reference to GST 2.0 (effective 22 September 2025), consider:

1. The 12% and 28% slabs were abolished.
2. A 40% rate was introduced for luxury and sin goods.
3. Petroleum products and alcohol were brought under GST.
4. Individual life and health insurance were exempted.

(a) 1, 2 and 4 (b) 1, 2 and 3 (c) 2, 3 and 4 (d) 1, 2, 3 and 4 Ans: (a). Petroleum & alcohol remain outside GST.

Q3. The Goods and Services Tax Council is established under which Article? Decisions of the Council require: (a) Article 280; simple majority (b) Article 279A; three-fourths weighted majority (c) Article 279A; two-thirds simple majority (d) Article 268; consensus Ans: (b).

Q4. As per the Monetary Policy framework after April 2022, which of the following is the floor of the LAF corridor? (a) Reverse Repo Rate (b) Repo Rate (c) Standing Deposit Facility (SDF) Rate (d) Bank Rate Ans: (c).

Q5. The Cash Reserve Ratio (CRR) reduction announced by RBI in June 2025 was: (a) 25 bps; effective immediately (b) 50 bps; effective immediately (c) 100 bps; staggered between September and November 2025 (d) 100 bps; effective immediately Ans: (c).

Q6. With reference to the Income Tax Act, 2025:

1. It replaces the Income-Tax Act, 1961.
2. It introduces a single concept of "Tax Year" replacing Previous Year and Assessment Year.
3. It comes into force from 1 April 2025.

Which are correct? (a) 1 and 2 only (b) 1 and 3 only (c) 2 and 3 only (d) 1, 2 and 3 Ans: (a). Effective from 1 April 2026.

Q7. Consider the following statements about the Economic Survey 2025-26:

1. It projects real GDP growth for FY 2026-27 in the range of 6.8–7.2%.
2. It pegs India's potential growth at around 7%.
3. It is prepared by NITI Aayog.

Which are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Ans: (a). Survey is prepared by DEA under the CEA, not by NITI Aayog.

Q8. With reference to the India Semiconductor Mission (ISM):

1. ISM is a statutory body under the Ministry of Electronics and IT.
2. ISM 2.0 was announced in the Union Budget 2026-27.
3. India's first true semiconductor fab is being set up in Dholera, Gujarat.

(a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Ans: (b). ISM is nodal agency under MeitY, established under Digital India Corporation — not statutory.

Q9. The National Critical Mineral Mission (2025) covers approximately how many critical minerals notified by the Ministry of Mines? Lithium reserves in India were first significantly notified in: (a) 24; Reasi (J&K) (b) 30; Reasi (J&K) (c) 30; Degana (Rajasthan) (d) 50; Khargone (Madhya Pradesh) Ans: (b).

Q10. Tribhuvan Sahkari University, India's first national cooperative university, is located in: (a) Vaikom, Kerala (b) Anand, Gujarat (c) Pune, Maharashtra (d) Karnal, Haryana Ans: (b).

Q11. The 97th Constitutional Amendment (2011) inserted Part IX-B for cooperatives. In Rajendra N. Shah v Union of India (2021), the Supreme Court: (a) Struck down the entire Amendment. (b) Upheld the entire Amendment. (c) Struck down parts dealing with State cooperatives but upheld the fundamental-right amendment. (d) Referred the matter to a larger Constitution Bench. Ans: (c).

Q12. With reference to the National Industrial Corridor Development Programme (NICDP):

1. NICDIT is the executing arm of NICDP.
2. The Delhi-Mumbai Industrial Corridor is one of six existing corridors.
3. In March 2025, the Cabinet approved 12 new projects worth ₹28,602 crore across 10 states.

Which are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Ans: (d).

Q13. Which of the following correctly describes the Sabka Bima Sabki Raksha Bill, 2025? (a) Restructures public-sector general insurers (b) Raises FDI in insurance from 74% to 100% and introduces a composite licence regime (c) Replaces the LIC Act 1956 (d) Establishes a new insurance regulator parallel to IRDAI Ans: (b).

Q14. Consider the following pairs (Body / Initiative → Role):

1. NPCI International Payments Ltd → Roll out of UPI abroad
2. KABIL → Acquisition of overseas critical-mineral assets
3. NaBFID → Long-term infrastructure financing
4. DIPAM → Disinvestment process

How many pairs are correctly matched? (a) Only two (b) Only three (c) All four (d) Only one Ans: (c).

Q15. As per the Economic Survey 2025-26, the Gross Non-Performing Asset (GNPA) ratio of scheduled commercial banks as of September 2025 was approximately: (a) 2.2% — multi-decadal low (b) 3.2% (c) 5.8% (d) 7.1% Ans: (a).

End of Chapter B — Economy & Banking. Next: Chapter C — International Relations (file 03).