India and the European Union (EU) have concluded a historic Free Trade Agreement (FTA) after nearly 20 years of talks. The deal aims to double exports to India and eliminate tariffs on 99.5% of Indian exports to the 27-nation bloc. Key sectors benefiting include textiles, leather, gems, and jewelry. In return, India has granted tariff concessions on 97.5% of imports from the EU, making European wines and luxury cars significantly cheaper. The agreement also includes a Security and Defence Partnership and a memorandum on mobility for Indian professionals and students, marking a major shift in bilateral relations.
The FTA eliminates duties on 99.5% of Indian exports and 97.5% of EU imports into India.
Key Indian labor-intensive sectors like textiles, leather, and footwear will gain zero-duty access to the EU market.
The deal includes a Security and Defence Partnership to enhance cooperation in maritime security and cyber-security.
Exam Points
Negotiations for the FTA originally started in 2007, were suspended in 2013, and relaunched in 2022.
The deal targets a reduction in tariffs for European wines from 150% to 20-30% and cars from 110% to 10%.
The agreement covers 144 service sub-sectors for the EU and 102 for India.
The Election Commission of India (ECI) informed the Supreme Court that maintaining a place in the electoral roll is a 'qualified right' rather than an absolute one. During a hearing on the Special Intensive Revision (SIR) exercise in Bihar, the EC argued that voters must continuously fulfill essential conditions, such as Indian citizenship and age requirements, as laid out in Article 326 of the Constitution. The SIR is a verification exercise to ensure the integrity of the roll by weeding out duplicates and deceased voters, rather than a process to determine citizenship.
Article 326 of the Constitution provides for adult suffrage but requires voters to be 18 years old and Indian citizens.
The EC maintains that the fulfillment of these conditions is a continuous requirement to remain on the electoral roll.
The Special Intensive Revision (SIR) is defended as a verification exercise to improve voter turnout and roll accuracy.
Exam Points
Article 326 of the Indian Constitution deals with elections to the House of the People and Legislative Assemblies on the basis of adult suffrage.
Sections 16 and 19 of the Representation of the People Act, 1950, prescribe disqualifications and conditions for registration.
Former RBI Governor C. Rangarajan argues that the recent decline in the Indian rupee's value is driven more by geopolitical factors and U.S. trade policies than domestic economic fundamentals. Despite a strong growth rate of 7.4% and low inflation, the rupee has depreciated due to capital outflows sparked by U.S. tariff threats. Rangarajan suggests that while the RBI can intervene to reduce volatility, a long-term solution lies in diplomatic engagement with the U.S. to resolve trade disputes. He warns that devaluation is not a remedy when inflation disparities are low.
The rupee's depreciation is attributed to capital outflows following U.S. threats of reciprocal tariffs.
India's current account deficit remains modest at 0.76% of GDP, indicating strong internal economic health.
The RBI's role is to reduce exchange rate volatility rather than pegging the rupee to a specific value.
Exam Points
India's growth rate for the current year is estimated at 7.4%, with CPI inflation ending 2025 at 1.33%.
The trade deficit for April-December 2025 was $96.58 billion compared to $88.43 billion in the previous year.
India's four new Labour Codes aim to promote the formalisation of employment and improve the ease of doing business. However, data from the Periodic Labour Force Survey (PLFS) 2023-24 highlights significant challenges for the youth (aged 15-29). Youth unemployment stands at 10.2%, and a large portion of young workers are in informal or self-employed roles without written contracts or social security. The new codes introduce the 'gig worker' category and mandate social security, but gaps in coverage and the lack of a statutory national floor wage remain concerns for labor advocates.
The four Labour Codes consolidate 29 central laws to simplify compliance and expand social protection.
Youth labor force participation is 46.5%, significantly lower than the 76.4% for those aged 30-59.
Over 90% of young workers are informally employed, with 66.1% of regular salaried youth lacking written contracts.
Exam Points
The four codes are: Code on Wages (2019), Industrial Relations Code (2020), Social Security Code (2020), and OSHWC Code (2020).
NITI Aayog estimates the gig workforce will rise to 2.35 crore by 2029-30.
Following the collapse of Bashar al-Assad’s regime, Syria’s Kurdish regions, led by the Syrian Democratic Forces (SDF), face new challenges. The Kurdish population established the 'Rojava' autonomous administration, but recent clashes with government forces and Turkish-backed groups led to a ceasefire agreement. The deal requires the SDF to hand over key cities like Raqqa and Deir al-Zour to the central government and integrate its administrative and military structures. The U.S. maintains a small troop presence to counter IS remnants, while Turkey continues to view the Kurdish militia as a major security threat.
The Kurdish-led SDF controlled nearly 30% of Syrian territory before the recent regime change.
A ceasefire agreement mediated by the interim government requires the SDF to integrate into the national military.
Turkey opposes Kurdish autonomy, labeling the YPG militia as a terrorist organization linked to the PKK.
Exam Points
The Kurdish population constitutes approximately 10% of Syria's total population.
The main political entity in Rojava is the Democratic Union Party (PYD), which follows 'democratic confederalism'.
The India-EU Free Trade Agreement extends beyond trade to include deep technological collaboration. A 'Comprehensive Strategic Agenda' for 2030 focuses on joint R&D in advanced semiconductor 'heterogeneous integration' and chip design. It also links the European AI Office with India’s National AI Mission to develop safe, human-centric AI. The deal aims to create a 'common market' for AI, where Indian companies complying with EU standards can flow into the European market. This partnership seeks to secure strategic autonomy in critical technologies and reduce dependence on U.S.-based intellectual property.
The agreement focuses on 'heterogeneous integration,' which combines different types of chips into a single package.
India’s design talent will be linked with the EU’s physical fabrication infrastructure, such as IMEC in Belgium.
The collaboration aims to align Indian AI policy with the EU's AI Act to facilitate market access.
Exam Points
The EU’s Horizon Europe programme has a budget of €95.5 billion for research and innovation.
The India-EU Trade and Technology Council (TTC) was established in 2022 to manage this relationship.
The Karnataka government has officially constituted the Karnataka Platform-Based Gig Workers’ Welfare Development Board under the 2025 Act. This move aims to implement welfare measures for gig workers engaged with platforms like Zomato, Uber, and Amazon. Both workers and aggregators must register with the Board within 45 days. A welfare fee of 1% to 1.5% will be levied on aggregator platforms to fund social security benefits. The Board will include representatives from the government, labor unions, and aggregator platforms, with the Labour Minister serving as the ex-officio president.
Karnataka is among the first states to create a dedicated welfare board and fund for gig workers.
Aggregators are required to pay a welfare fee based on their turnover to support the fund.
Registered gig workers will receive a unique identification number to access social security benefits.
Exam Points
The welfare fee on aggregators is set between 1% and 1.5% with a specific cap.
Aggregators have a 45-day window to complete registration and submit worker details.
India's ambition to install 500 GW of non-fossil fuel capacity by 2030 relies heavily on Production Linked Incentive (PLI) schemes. While downstream module assembly is progressing, critical upstream segments like polysilicon and wafer manufacturing remain bottlenecks, reaching only 14% and 10% of targets respectively. Similarly, battery cell manufacturing progress is sluggish, with only 2.8% of the targeted 50 GWh capacity commissioned by late 2025. The article argues that capital subsidies alone are insufficient; India needs deep technical expertise, workforce training, and a relook at PLI provisions to prioritize know-how over company net worth.
PLI schemes for solar and batteries face significant implementation challenges in high-technology upstream segments.
Stringent domestic value addition requirements (60% within five years) are difficult for manufacturers to meet.
The lack of technical expertise and difficulties in obtaining visas for foreign experts hinder factory construction.
Exam Points
India's target is 500 GW of non-fossil fuel capacity by 2030.
The outlay for the domestic battery cell production scheme is ₹18,000 crore for 50 GWh capacity.
India and the European Union have committed to promoting collaboration on the peaceful uses of nuclear energy through the India-Euratom agreement. This partnership focuses on research and development in nuclear science, technology, and safety. Key areas include fusion energy research via the International Thermonuclear Experimental Reactor (ITER) and non-power applications of atomic energy like radio-pharmaceuticals. The two sides also discussed the Carbon Border Adjustment Mechanism (CBAM), which remains a point of contention due to its impact on Indian iron and steel exports, with India seeking flexibility under the regulation.
The collaboration falls under the research and development agreement signed with Euratom in July 2020.
Focus areas include nuclear security, radiation safety, and the use of nuclear technology in health and agriculture.
India and the EU are both partners in the ITER project, aimed at developing fusion energy.
Exam Points
Euratom is the European Atomic Energy Community.
The Horizon Europe programme is the EU's key funding mechanism for research, which India seeks to join.
The Bureau of Energy Efficiency (BEE) has unveiled a fuel consumption standard proposal for Light Commercial Vehicles (LCVs) in India, set to run from 2027 through 2032. LCVs, which account for 48% of commercial vehicles, have largely operated without regulatory mandates compared to passenger cars. The draft introduces super credits for electric LCVs (e-LCVs) to encourage electrification. However, experts warn that allowing credits for hybrids and older internal combustion engine (ICE) technologies might dilute the regulation's effectiveness and delay the transition to zero-emission transport.
LCVs under 3.5 tonnes are the backbone of India's e-commerce economy but have lacked fuel efficiency mandates.
The BEE proposal aims to bring LCVs under regulatory oversight to meet decarbonisation goals.
Super credits are designed to make electric vehicles more attractive on paper for manufacturers.
Exam Points
LCVs accounted for 48% of commercial vehicles in India in 2024, but electrification was only 2%.
The proposed fuel efficiency standards for LCVs will run from 2027 to 2032.
The Initial Public Offering (IPO) of Bharat Coking Coal Limited (BCCL), a subsidiary of Coal India, has created capital market history by being oversubscribed 147 times. This success reflects a broader trend where Public Sector Undertakings (PSUs) are being viewed as value-driven, strategically critical enterprises rather than loss-making entities. Over the past 7-8 years, 15 PSEs have listed, raising significant capital and creating shareholder value. The shift is attributed to improved administrative quality, strategic planning, and the government's focus on self-reliance in critical sectors like energy and minerals.
BCCL's IPO received over 90 lakh applications, the highest ever recorded in India's mainboard IPO market.
The cumulative market capitalisation of listed PSEs rose from ₹1.4 lakh crore to ₹8.53 lakh crore between 2017 and 2025.
PSUs are increasingly funding critical missions, such as the National Critical Mineral Mission, through their own resources.
Exam Points
BCCL is India's largest producer of coking coal and accounts for nearly 58.5% of domestic production.
The Ministry of Mines launched the National Critical Mineral Mission (NCMM) in January 2025 with an expenditure of ₹34,300 crore.
A petition has been filed in the Supreme Court challenging the validity of the University Grants Commission (UGC) Regulations, 2026. The petitioner argues that Regulation 3(c) is discriminatory because it limits the benefit of reservation and protection against discrimination solely to Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC). The plea contends that this excludes members of the general or upper castes from legal protection against caste-based hostility, thereby violating the right to equality under Article 14 of the Constitution. The petition seeks a more inclusive definition of caste-based discrimination.
The 2026 UGC Regulations superseded the 2012 version with the goal of fostering equity in higher education.
The petitioner argues that the current definition of discrimination creates a 'hierarchy of victimhood'.
The plea claims that the regulations assume caste-based discrimination only operates in one direction.
Exam Points
The petition challenges Regulation 3(c) of the UGC (Promotion of Equity in Higher Education Institutions) Regulations, 2026.
Article 14 of the Indian Constitution guarantees equality before the law and equal protection of the laws.
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