Finance Minister Nirmala Sitharaman expressed confidence that recent GST rationalization, including a move towards a two-tier tax structure (5% and 18%) and a 40% slab, will bolster GDP growth by stimulating consumption. Despite an estimated revenue shortfall of ₹48,000 crore, the government expects revenue buoyancy to bridge this gap within the current fiscal year. The reforms aim to simplify the tax regime, making it a 'people's reform' that touches all citizens. Additionally, the exemption of GST on health and life insurance premiums is highlighted as a significant move to support the financial security of India's youthful population.
The GST Council approved a two-tier structure of 5% and 18%, along with a 40% peak slab for specific items.
The government estimates the fiscal deficit for 2025-26 at 4.4% of the GDP, or approximately ₹15.69 lakh crore.
GST 2.0 aims to reduce the tax burden on essentials and exempt critical services like insurance to increase household purchasing power.
Exam Points
Fiscal deficit target for 2025-26: 4.4% of GDP (₹15.69 lakh crore).
Economic Survey projected real economic growth: 6.3-6.8%.
Proposed GST rationalization slabs: 5%, 18%, and a 40% peak rate.
The Union Home Ministry recently exempted undocumented Sri Lankan Tamil refugees who entered India before January 9, 2015, from penal provisions under the Immigration and Foreigners Act, 2025. However, a senior official clarified that these refugees remain ineligible for Long-Term Visas (LTVs). While the order removes the 'illegal migrant' tag, it does not grant immediate citizenship. In contrast, members of six minority communities from Afghanistan, Bangladesh, and Pakistan are eligible for LTVs and subsequent citizenship after 11 years of stay. This distinction highlights the specific legal framework governing different refugee groups in India.
The MHA notified the Immigration and Foreigners (Exemption) Order under the new 2025 Act to protect refugees from deportation.
Registered Sri Lankan Tamil nationals entering before January 9, 2015, are exempt from passport and visa requirements.
Unlike the six minority communities covered under the CAA framework, Sri Lankan Tamils currently cannot apply for LTVs.
Exam Points
Cut-off date for Sri Lankan Tamil refugee exemption: January 9, 2015.
Governing Law: Immigration and Foreigners Act, 2025 (replacing the Passport Act and Foreigners Act).
Relevant Statutes: Citizenship Act, 1955 and Citizenship Rules, 1956.
Kerala is witnessing a rise in cases of Primary Amoebic Meningoencephalitis (PAM), a rare but highly fatal brain infection. A 32-year-old man in Kasaragod and a 45-year-old in Wayanad are among the recent victims. The infection is caused by Naegleria fowleri, an amoeba commonly found in warm, stagnant freshwater bodies like ponds and rivers. The amoeba enters the human body through the nose and travels to the brain, causing severe inflammation. Symptoms include headache, fever, and vomiting, progressing rapidly to seizures and memory loss. Health departments are currently monitoring several others under treatment.
Amoebic meningoencephalitis is caused by the free-living amoeba Naegleria fowleri, often found in stagnant water.
The pathogen typically enters the body through the nasal passage during activities like swimming or bathing in contaminated water.
Initial symptoms include neck stiffness, fever, and vomiting, but the disease progresses rapidly with a very high mortality rate.
Exam Points
Pathogen: Naegleria fowleri (commonly known as the 'brain-eating amoeba').
Affected regions: Kasaragod, Wayanad, Malappuram, and Kozhikode in Kerala.
Transmission route: Nasal entry from warm, stagnant freshwater bodies.
The Great Nicobar Project, a ₹72,000 crore mega-infrastructure plan, is facing criticism for being a potential ecological disaster. The project threatens the ancestral lands of the Shompen (a PVTG) and Nicobarese tribes, potentially displacing them permanently. Critics argue that mandatory Social Impact Assessments and consultations with tribal councils were bypassed. Furthermore, the project involves clearing vast tracts of rainforest, with 'compensatory afforestation' planned thousands of kilometers away in Haryana. The site also falls within a seismically active zone and critical turtle nesting grounds, raising serious environmental and safety concerns.
The project impacts the Shompen tribe, classified as a Particularly Vulnerable Tribal Group (PVTG) with unique ancestral rights.
Legal safeguards under the Forest Rights Act (2006) and the LARR Act (2013) were allegedly ignored during the approval process.
Environmentalists warn about the destruction of the habitat of the Nicobar long-tailed macaque and leatherback sea turtles.
Exam Points
Project Cost: ₹72,000 crore.
Affected Tribes: Shompen (PVTG) and Nicobarese.
Relevant Laws: Forest Rights Act (2006) and Right to Fair Compensation (LARR) Act, 2013.
Recent Sample Registration System (SRS) data reveals a significant decline in India's Crude Birth Rate (CBR) and Total Fertility Rate (TFR). The national TFR has fallen to 1.9, which is below the replacement-level fertility of 2.1. While northern states like Bihar still maintain higher rates, southern states like Tamil Nadu and Delhi have seen sharp declines. This demographic shift indicates a transition toward an aging population, with the proportion of people above 60 rising to 9.7%. This 'greying' of the nation necessitates a policy reorientation toward healthcare, social support, and financial security for the elderly.
India's Total Fertility Rate (TFR) has declined to 1.9, falling below the replacement level of 2.1 required for a stable population.
There is a wide regional disparity in demographics, with Bihar reporting the highest TFR (2.8) and Delhi the lowest (1.2).
Kerala has the highest proportion of elderly population at 15%, while states like Assam and Jharkhand report the lowest.
Exam Points
National TFR: 1.9 (Replacement level: 2.1).
Highest CBR: Bihar (25.8); Lowest CBR: Tamil Nadu (12).
Elderly population (60+): 9.7% of the total Indian population.
While India saw gross FDI inflows of $81 billion in FY 2024-25, the net retained capital has fallen due to a sharp rise in disinvestments and repatriations. Recent trends show a shift from long-term strategic investments to short-term profit-seeking. Manufacturing, once a primary sector for FDI, now receives only 12% of total inflows. Furthermore, FDI is increasingly dominated by financial centers like Singapore and Mauritius, rather than traditional industrial sources like the US or UK. The surge in outward FDI by Indian firms also raises concerns about the domestic investment climate and long-term economic resilience.
Net FDI inflows have declined as gross inflows are offset by high levels of disinvestment, reaching $51.4 billion in FY 2024-25.
FDI in the manufacturing sector has dropped significantly, now accounting for only 12% of the total investment share.
A large portion of FDI is driven by tax-efficient routes through Singapore and Mauritius rather than direct industrial investment.
Exam Points
Gross FDI inflow (FY 2024-25): $81 billion.
Disinvestments and Repatriations (FY 2024-25): $51.4 billion.
The India-China border remains indeterminate due to the inability of both nations to clearly define the Line of Actual Control (LAC). Following Rajiv Gandhi’s 1988 visit, the 1993 Border Peace and Tranquility Agreement (BPTA) was signed to maintain the status quo. However, subsequent attempts to exchange maps and clarify the LAC, particularly during the early 2000s, failed as both sides presented maximalist positions. The lack of a mutually agreed-upon boundary has led to frequent face-offs, most notably in Eastern Ladakh in 2020. The article emphasizes that without a defined LAC, peace remains fragile.
The 1993 Border Peace and Tranquility Agreement (BPTA) was the first formal pact to maintain peace along the LAC.
The 1996 agreement expanded on the BPTA, focusing on military confidence-building measures (CBMs) to prevent escalation.
Efforts to clarify the LAC through map exchanges in 2000-2002 stalled due to conflicting territorial claims in the western and eastern sectors.
Exam Points
Key Agreements: BPTA (1993) and CBM Agreement (1996).
Joint Working Group (JWG) established after PM Rajiv Gandhi's 1988 visit to Beijing.
Major conflict zones: Depsang, Pangong Tso, Spanggur Gap, and Chumar.
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