General Studies Paper-3 Context The GST Council has simplified the existing four-tier system (5%, 12%, 18%, and 28%) into a two-slab structure: 5% – for essential goods 18% – for most standard goods and services Additionally, a new 40% slab is introduced to tax sin and luxury items. More About the News 0% GST on vital goods/services: Basic food items, health and life insurance, educational materials, select medical devices. 33 life-saving drugs + 3 key cancer medicines have zero GST. Benefits of Key Changes For Consumers: Lower living costs and improved access to healthcare and education due to reduced or....Read More

General Studies Paper-2 Context Recently, the 56th GST Council, chaired by Union Finance Minister, has approved Next-Gen GST reforms, i.e. GST 2.0 that focuses on improving the lives of the common man and ensuring ease of doing business for all with a broader vision of a Viksit Bharat 2047. About the GST 2.0 (Next-Generation GST Reforms) These are designed to reduce tax rates, and create a virtuous cycle of growth. These include lower prices, higher demand, support for MSMEs, ease of living, wider tax net, support for manufacturing, revenue growth, economic momentum, and social protection. Key Features Simplification of Tax....Read More

General Studies Paper-3 Context Recently, the President of India underscored the transformative role of India’s banking sector in shaping the nation’s economic trajectory. About the Banking Industry in India India’s banking sector is a financial intermediary, primary conduit for credit delivery, liquidity modulation, financial inclusion, and serves as the operational backbone of macroeconomic management. Cooperative and Local Area Banks: Serve niche markets and rural populations. Development Financial Institutions: Such as NABARD, SIDBI, and IDBI, cater to agriculture, small industries, and infrastructure. Non-Banking Financial Companies (NBFCs): Over 9,000 registered entities support credit delivery to underserved segments. Role of the Banking Industry....Read More

General Studies Paper-3 Context PM Modi launched the Bihar Rajya Jeevika Nidhi Saakh Sahkari Sangh Limited, highlighting that “empowered women are the foundation of Viksit Bharat.” About Jeevika Nidhi Saakh Sahkari Sangh Limited Jeevika Nidhi is a state-level cooperative financial institution established to support women entrepreneurs in Bihar. Objective: To provide timely credit at lower interest rates, reducing dependence on microfinance institutions (MFIs) that charge 18%–24%. Membership: All registered cluster-level federations of Jeevika SHGs will be part of the Society. Financing: Both the Government of Bihar and the Central government will contribute funds. Technology: The system is entirely digital, enabling....Read More

General Studies Paper-3 Context Recently, the Prime Minister of India, at the SEMICON India 2025 (4th Edition), unveiled an ambitious roadmap to position India as a global leader in semiconductor manufacturing. Why Semiconductors Matter? Semiconductors are the backbone of modern electronics — powering everything from smartphones and electric vehicles to defense systems and space technologies. These have become central to economic security and strategic independence, as the world moves toward greater digitalization and automation. India’s Semiconductor Sector The Ministry of Electronics and Information Technology (MeitY) is the nodal agency responsible for implementing India’s semiconductor and display ecosystem strategy. Its goals....Read More

General Studies Paper-3 Context Recently, in his latest Mann Ki Baat address, the Prime Minister of India renewed his call for citizens to adopt the mantra of ‘Vocal for Local’, emphasizing the importance of supporting indigenous products to build a self-reliant India. About the ‘Vocal for Local’ Initiative It was launched by NITI Aayog under its Aspirational Blocks Programme in 2024. It emphasizes supporting locally made products, artisans, and industries to boost India’s economy and reduce dependency on imports. It draws inspiration from the Swadeshi Movement led by Mahatma Gandhi, but it is framed in the modern context of globalization....Read More

General Studies Paper-3 Context India possesses a demographic dividend, with over 65% of its population under the age of 35. This latent potential needs to be harnessed and transformed into tangible prosperity. Role of India’s Youth: From Shram Shakti to Viksit Bharat Economic Transformation in the Last Decade: India has cemented its place in the global economic order, rising from the world’s 10th largest economy in 2014 to the 4th largest today. At the core of this progress lies its Shram Shakti (Labour Power), driving growth through resilience and productivity. Job Creation and Formalisation: According to RBI-KLEMS (K: Capital, L:....Read More

General Studies Paper-3 Context In an era of global economic uncertainty and rising protectionism, like the recent U.S. hike on Indian steel and chemical products, India’s tourism sector stands out as a resilient, inclusive, and tariff-proof engine of growth. About Tourism Sector in India Current Statistics (2023–24): India’s tourism sector has rebounded strongly post-pandemic, with both domestic and international travel showing impressive growth: Foreign Tourist Arrivals (FTAs):52 million (2023), up 47.89% from 2022; Non-Resident Indian (NRI) Arrivals: 9.38 million (2023), up 18.9% from 2022; Domestic Tourist Visits (DTVs): Domestic visitor spending ₹14.64 trillion (2023), up 15% from 2019; Foreign Exchange....Read More

General Studies Paper-3 Context The United States has imposed 50% tariffs on a wide range of Indian merchandise exports starting August 27, 2025. About The move combines the 25% tariff announced in July 2025 and an additional 25% “penalty tariff” in August 2025 linked to India’s purchases of Russian oil and defence imports. Key sectors affected include textiles, apparel, gems and jewellery, shrimp, carpets, leather, and furniture — all of which are labour-intensive and job-generating industries. Major Goods Exempted from Tariffs: Pharmaceuticals, Electronics and Petroleum products. Impact on India’s Economy Trade Impact: India’s exports to the US could fall from....Read More

General Studies Paper -3 Context: In August 2025, U.S. President Donald Trump imposed a 50% tariff on imports from India, including a 25% penalty related to India’s oil purchases from Russia. India’s vulnerabilities in the global system. S. tariffs averaged 2–3% for two decades until April 2024 but the new hike marks a sharp departure. In return for tariff relaxation, the U.S. is demanding greater market access, especially for agricultural and dairy products, which could hurt Indian farmers. Despite being a U.S. ally, India faces steeper tariffs than China (now reduced to 30%). The tariff war highlights India’s vulnerabilities in....Read More