Important topics and their relevance in UPSC CSE exam for April 16, 2025. If you missed the April 15, 2025 UPSC CSE exam key from the Indian Express, read it here FRONT PAGE Urdu isn’t alien, born in this land, says SC, clears its use in signboard Syllabus: Preliminary Examination: Current events of national and international importance. Main Examination: • General Studies I: Indian culture will cover the salient aspects of Art Forms, literature and Architecture from ancient to modern times. • General Studies II: Indian Constitution—historical underpinnings, evolution, features, amendments, significant provisions and basic structure. What’s the ongoing story: Upholding the use of Urdu on the signboard of a municipal council building in Maharashtra, the Supreme Court on Tuesday said language is culture and must not become a cause for dividing people, and Urdu “is the finest specimen of Ganga-Jamuni tehzeeb, or the Hindustani tehzeeb”. Key Points to Ponder: • What exactly the Supreme Court said regarding the use of Urdu on the signboard? • Urdu “is the finest specimen of Ganga-Jamuni tehzeeb, or the Hindustani tehzeeb”—Decode the quote? • What is Ganga-Jamuni Tehzeeb? • Why Urdu “is the finest specimen of Ganga-Jamuni Tehzeeb”? • What is the origin of Urdu Language? • How Urdu got developed and flourished in India? • What significance does Urdu play in India's struggle for independence and national movement? • Mahatma Gandhi had admonished those who were opposing Urdu—what exactly he said? • Urdu’s connection with Deccan India—know in detail • Is Urdu included in 8th schedule of the Constitution of India? • Hindi–Urdu controversy—Know in detail? • "Hindi for Hindus; Urdu for Muslims"—How Urdu and Hindi become religiously polarized. • What is Urdu’s official status in India? • Do you use terms from Urdu every day? If yes, what are they? Key Takeaways: • The bench of Justices Sudhanshu Dhulia and K Vinod Chandran refused to interfere with the Bombay High Court’s finding that the use of Urdu is not prohibited under the Maharashtra Local Authorities (Official Languages) Act, 2022, or in any provision of law. • A former councillor had filed a petition challenging the use of Urdu on the signboard of the Patur Municipal Council building in Akola district of Maharashtra. • “Our misconceptions, perhaps even our prejudices against a language, have to be courageously and truthfully tested against the reality, which is this great diversity of our nation: our strength can never be our weakness. Let us make friends with Urdu and every language,” the SC said. • The court said it is a “misconception that Urdu is alien to India”, adding that “it is a language which was born in this land”. • Writing for the bench, Justice Dhulia elaborated on the bench’s views on Urdu and languages in general. “Language is not religion. Language does not even represent religion. Language belongs to a community, to a region, to a people; and not to a religion,” said the judgment. • “Language is culture. Language is the yardstick to measure the civilisational march of a community and its people. So is the case of Urdu, which is the finest specimen of Ganga-Jamuni tehzeeb, or the Hindustani tehzeeb, which is the composite cultural ethos of the plains of northern and central India,” it said. • “Before language became a tool for learning, its earliest and primary purpose will always remain communication,” Justice Dhulia said. “The purpose here for the use of Urdu is merely communication. All the municipal council wanted to do was to make an effective communication. This is the primary purpose of a language, which the Bombay High Court has laid emphasis on,” the court said. • “We must respect and rejoice in our diversity, including our many languages. India has more than hundred major languages. Then there are other languages known as dialects or ‘mother tongues’ which also run into hundreds. According to the 2001 Census, India had a total of 122 major languages including the 22 scheduled languages, and a total of 234 mother tongues. Urdu was the sixth most spoken scheduled language of India. In fact, it is spoken by at least a part of the population in all States and Union Territories, except perhaps in our North-Eastern States,” it said. Do You Know: • According to the Urdu Language experts, the origin of Urdu language had taken place in India several centuries back and the names of three places-all in India- are quoted in the historical references where this language had developed and got flourished with different names. • Assistant Professor and Coordinator of Department of Urdu Punjab University, Chandigarh, Prof. Ali Abbas, said that all the historical references indicate that origin of Urdu had taken place in Punjab state of India and the great poet Ameer Khusro, in his book ‘Ghurrat-ul- Kamal’ had written that Masood Lahori (Masood Saad Salman), a renowned poet who was born in Lahore in 11th century) had composed poetry in Hindvi (Urdu), which is also called Dehlavi. This shows that Urdu was very much originated from Punjab as Lahore was the part of greater Punjab only before partition. —The subject, object, auxiliary, verb, grammar, tenses of Urdu are very much Indian and like the Hindi language. “Even if it has derived some root words from Persian and Arabic languages then they were changed into Urdu language in India,” he stressed. —He said before it is called Urdu, it was familiar with other names including Hindustani, Hindavi, Dehlavi and Rekhta. —He also mentioned that we write it from right to left but the same was the case of Punjabi Shahmukhi language which was also written right to left. —“Despite its Persian script, Urdu is an Indian language because there are several examples of great Indian languages which are written in scripts derived from outside the country,” informed he. For instance, Punjabi Shahmukhi language is also written in Persian Script. • Experts said that as per the historical references after its origin in Punjab, Urdu got developed and flourished in Delhi along with part of Haryana state and some states in South where it was developed in the form of ‘Dakhni (Deccani) language’. • Historians said that it had developed and flourished in Delhi during the period of ‘Delhi Sultanate’ from 12th to 16th century and then during the period of ‘Mughal Empire’ in Delhi from 16th century to 19th century when several court poets used this language in their great poetry and writings. And then it was also developed in Deccan states. Other Important Articles Covering the same topic: 📍No bar on use of any language along with Marathi on signboards for municipal councils: Bombay HC 📍Krishna Sobti: A gateway to Ganga-Jamuni vista 📍Explained: Why Urdu is an Indian language, not a foreign one Above normal rain likely, says IMD; may spur consumption Syllabus: Preliminary Examination: Indian and World Geography-Physical, Social, Economic Geography of India and the World. Main Examination: General Studies I: Important Geophysical phenomena such as earthquakes, Tsunami, Volcanic activity, cyclone etc., geographical features and their location-changes in critical geographical features (including water-bodies and ice-caps) and in flora and fauna and the effects of such changes. What’s the ongoing story: The country is all set to have another good year of monsoon rains, with the India Meteorological Department (IMD) forecasting more than 100 per cent of the normal rainfall in the upcoming June-September monsoon season. Key Points to Ponder: • What has the India Meteorological Department (IMD) forecasted for this year’s rain? • What is the average rainfall for a prolonged period of time called? • What is the long period average rainfall (LPA)? • What is ‘above normal’ rainfall? • How IMD defines rainfall as ‘normal’, ‘above normal’ and ‘excess’? • What are the main drivers of Indian monsoon? • know the terms and their influence on Indian Monsoon—El Nino Southern Oscillation (ENSO), Indian Ocean Dipole (IOD), El Nino, La Nina. • How less spring snow cover over the northern hemisphere including Eurasia is good for monsoon rainfall? • Indian monsoon is a "real finance minister of India"—Decode Key Takeaways: • In its first long-range forecast for the season, IMD said all the main drivers of Indian monsoon, including El Nino Southern Oscillation (ENSO) in the equatorial Pacific Ocean, Indian Ocean Dipole (IOD), and snow-cover around the north pole, were favourable. • It said the monsoon season was likely to bring rainfall that was 105 per cent of the long-period average. The long-period average rainfall for the season is 87 cm. This means that India could receive over 91 cm (105 per cent of 87 cm) of rainfall this season over the entire four-month season. • If it turns out to be so, this would be the fifth time in the last seven years — since 2019 — that the country would receive 100 per cent or more rainfall in the season. • It would also be the second consecutive year of ‘above normal’ rainfall, an IMD categorisation that refers to rainfall in excess of 104 per cent of normal. IMD defines 96-104 per cent of rainfall as ‘normal’, between 104 and 110 per cent as ‘above normal’, and anything above that as ‘excess’. Last year, 2024, had produced 108 per cent of normal rainfall. Do You Know: • ENSO and IOD refer to the condition of sea surface temperatures in the Pacific and Indian Oceans respectively. Both of them influence monsoon rainfall. If the sea surface temperature in the eastern Pacific Ocean, off the cost of South America, is warmer than usual, a condition called El Nino, rainfall over India during the monsoon season is generally adversely affected. The opposite condition, called La Nina, favours good rainfall. IOD refers to the difference in temperatures in the Bay of Bengal and Arabian Sea sides of the Indian ocean. IOD is considered positive when the Arabian Sea side is warmer than the Bay of Bengal side. This is generally favourable for Indian monsoon. • Almost 75 per cent of India’s annual rains are realised in the four-month monsoon season. The rainfall received during this time is absolutely critical for irrigation, drinking water, power generation, and economy in general. Other Important Articles Covering the same topic: 📍What is El Nino and how it impacts the monsoon 📍Indian Ocean Dipole: What is it, how it can limit El Nino effects 📍Emergence of La Niña delayed: Will this affect Indian monsoon? Previous year UPSC Prelims Question Covering similar theme: 1. With reference to 'Indian Ocean Dipole (IOD)' sometimes mentioned in the news while forecasting Indian monsoon, which of the following statements is/are correct? (2018) 1. IOD phenomenon is characterised by a difference in sea surface temperature between tropical Western Indian Ocean and tropical Eastern Pacific Ocean. 2. An IOD phenomenon can influence an EI Nino's impact on the monsoon. Select the correct answer using the code given below: (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 2. The seasonal reversal of winds is the typical characteristic of (2014) (a) Equatorial climate (b) Mediterranean climate (c) Monsoon climate (d) All of the above climates 3. La Nina is suspected to have caused recent floods in Australia. How is La Nina different from EI Nino? (2011) 1. La Nina is characterized by un¬usually cold ocean temperature in equatorial Indian ocean whereas EI Nino is characterized by unusually warm ocean temperature in the equatorial pacific ocean. 2. EI Nino has adverse effect on south¬west monsoon of India, but La Nina has no effect on monsoon climate. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Govt fears trade war may trigger import surge of US farm, Chinese factory goods Syllabus: Preliminary Examination: Economic and Social Development Main Examination: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. What’s the ongoing story: AMID ESCALATING global trade tensions, the Commerce and Industry Ministry is assessing the risks of significant trade diversion from other countries to India and is particularly concerned about the likely surge in imports of US farm produce and factory goods from China, Vietnam and Indonesia into the country. Key Points to Ponder: • Know the basics—Import and Export • How Import and Export Impacts the Economy? • In the present situation, there is rising global trade tensions—why? • How trade diversion from other countries to India will impact Indian Economy? • How the recent tariff war will affect India’s GDP and GNP? • What happens if there is surge in imports? • What happens if there is surge in exports? • What is dumping in international trade? • ‘A recent assessment by the Commerce and Industry Ministry highlighted the risk of merchandise dumping into India due to reciprocal tariffs amid global trade tensions’—Discuss • What is an example of trade diversion in the international trade? • What is the difference between trade diversion and trade deflection? Key Takeaways: • “A recent assessment highlighted the risk of merchandise dumping into India due to reciprocal tariffs amid global trade tensions. Rising US costs may prompt exporters from countries like China, Vietnam, and Indonesia — all facing US trade deficits — to divert goods to India, potentially triggering import surges. Additionally, Chinese retaliatory tariffs on US goods could further increase the inflow of US agricultural products into India,” the official said. • Unlike other countries, China retaliated against US tariffs, which in turn has raised the risk of trade diversions globally. While the US has imposed a cumulative of 145 per cent tariffs on Chinese products apart from electronic items, Chinese tariffs on US items have also surged to a record 125 per cent. Notably, soybean and corn are the top US agri exports to China. • To support stakeholders amid shifting global trade conditions, including tariff hikes, import surges, and export-related disruptions, the Directorate General of Foreign Trade (DGFT) under the Commerce Ministry launched the Global Tariff and Trade Helpdesk on April 11, 2025, the Commerce and Industry Ministry said. • The Indian Express had reported earlier this month that a high-level meeting had taken place at the Commerce and Industry Ministry to assess possible import surge as a result of trade diversions in the backdrop of the reciprocal tariffs. • Meanwhile, the Commerce Ministry said the Directorate General of Trade Remedies (DGTR), the anti-dumping watchdog, has issued final findings on 13 trade remedy investigations on imports in March alone, particularly from China and other countries such as Japan, Taiwan, and the European Union. Items include Vitamin-A Palmitate, Insoluble Sulphur, and Aluminium Foil up to 80 microns, among others. • Economists and trade experts have also raised concerns over a surge in exports from China. • International think tank the Lowy Institute, in a recent research paper, estimated that about 80 per cent of countries traded more with China than with the US in 2023. However, the US remains a key driver of global demand, particularly as it has increased imports from countries such as Vietnam and Mexico, shifting away from China following the first round of Trump-era tariff hikes. Do You Know: • According to the Investopedia, Gross domestic product (GDP) is a broad measurement of a nation's overall economic activity. Imports and exports are important components of the expenditure method of calculating GDP. The formula for GDP is: GDP=C+I+G+(X−M) where: C=Consumer spending on goods and services I=Investment spending on business capital goods G=Government spending on public goods and services X=Exports M=Imports —Exports minus imports (X – M) equals net exports in this equation. The net exports figure is positive when exports exceed imports. This indicates that a country has a trade surplus. The net exports figure is negative when exports are less than imports. This indicates that the nation has a trade deficit. • Both imports and exports are experiencing growth in a healthy economy. A balance between the two is key. • The trade deflection is the redirection of trade flows from the third-country partner that has a higher external tariff, whereas trade diversion is the redirection of trade flows from third-country that has a lower external tariff. Other Important Articles Covering the same topic: 📍Explain Speaking: Trump’s reciprocal tariffs and the impact on India Previous year UPSC Prelims Question Covering similar theme: 4. With reference to the international trade of India at present, which of the following statements is/are correct? (2020) 1. India's merchandise exports are less than its merchandise imports. 2. India's imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years. 3. India's exports of services are more than its imports of services. 4. India suffers from an overall trade/current account deficit. Select the correct answer using the code given below: (a) 1 and 2 only (b) 2 and 4 only (c) 3 only (d) 1, 3 and 4 only 5. Increase in absolute and per capita real GNP do not connote a higher level of economic development, if (2018) (a) industrial output fails to keep pace with agricultural output. (b) agricultural output fails to keep pace with industrial output. (c) poverty and unemployment increase. (d) imports grow faster than exports. 6. Which of the following has/have occurred in India after its liberalization of economic policies in 1991? (2017) 1. Share of agriculture in GDP increased enormously. 2. Share of India’s exports in world trade increased. 3. FDI inflows increased. 4. India’s foreign exchange reserves increased enormously. Select the correct answer using the codes given below: (a) 1 and 4 only (b) 2, 3 and 4 only (c) 2 and 3 only (d) 1, 2, 3 GOVT & POLITICS Amid faceoff with Centre, Stalin sets up committee on autonomy of states Syllabus: Preliminary Examination: Indian Polity and Governance-Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues, etc. Main Examination: General Studies II: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure What’s the ongoing story: In a charged speech in the Tamil Nadu Assembly on Tuesday, Chief Minister M K Stalin announced the formation of a high-level committee to review and recommend measures to safeguard the rights of states and rebalance the federal structure of India, accusing the Union government of repeatedly infringing upon the Constitutional powers of states. Key Points to Ponder: • What do you mean by state autonomy? • Do States have autonomy in India? • What Chief Minister M K Stalin announced recently? • Why Tamil Nadu wants autonomy? • How does federalism promote regional autonomy in India? • What is the role of state government in federalism? • Is India a unitary or federal? • In the backdrop of the Centre-Tamil Nadu controversy, what exactly did the Sarkaria Commission recommend regarding Centre-State relations? Key Takeaways: • “To protect the rightful entitlements of the States and to enhance the relationship between the Union and state governments, a high-level committee has been formed,” Stalin said. • Former Supreme Court judge Kurian Joseph will head the panel that also includes former IAS officer Ashok Vardhan Shetty and economist M Naganathan. • The formation of this committee comes amid rising tensions between the DMK-led Tamil Nadu government and the BJP-ruled Centre, especially around the issues of education policy, taxation, fiscal devolution, and institutional autonomy. • The current push gains significance in light of concern in Tamil parties that the state’s representation in Parliament is under threat due to the impending delimitation exercise. Because the state has successfully implemented population control measures, the next delimitation could reduce the number of its seats, a move Stalin called “punishment for success”. • Stalin’s speech devoted considerable time to how education, once a state subject, has now become an arena of contention. He alleged that the National Education Policy 2020 was being used to impose Hindi in the name of a three-language formula. He accused the Centre of withholding Rs 2,500 crore meant for Tamil Nadu under the Samagra Shiksha Abhiyan scheme, a move he described as a betrayal of students’ welfare. • Stalin said the committee would deliver an interim report by January 2026 and a final one within two years. It will examine all relevant constitutional provisions, laws, and policies, and recommend ways to reclaim powers shifted from the State List to the Concurrent List. Do You Know: • The journey of India towards federalism began with its struggle for independence from colonial rule. The demand for autonomy and self-governance had a significant influence on a variety of linguistic, cultural, and geographical groupings. The framers of the Indian Constitution recognised the need to uphold our ethos, i.e. unity in diversity. Consequently, the Indian Constitution established a federal system of governance. It possesses all the traits of a federation such as bicameralism, two governments (the Union and the State), a written constitution that is neither too easy nor too stiff to amend, and an independent court to uphold the system of checks and balances. • Since independence, the evolution of federalism in India has been dynamic and can be examined along various phases, i.e. inner-party federalism, multi-party federalism, co-operative federalism, competitive federalism, confrontational federalism and bargaining federalism. Other Important Articles Covering the same topic: 📍Federalism in India: What you need to know Previous year UPSC Prelims Question Covering similar theme: 7. Consider the following statements: (2020) 1. The Constitution of India defines its ‘basic structure’ in terms of federalism, secularism, fundamental rights and democracy. 2. The Constitution of India provides for ‘judicial review’ to safeguard the citizens’ liberties and to preserve the ideals on which the Constitution is based. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 EXPRESS NETWORK Study: Surat particulate emissions market cut pollution in industries by up to 30% Syllabus: Preliminary Examination: General issues on Environmental ecology, Bio-diversity and Climate Change - that do not require subject specialization. Main Examination: General Studies III: Conservation, environmental pollution and degradation, environmental impact assessment and Inclusive growth and issues arising from it. What’s the ongoing story: The world’s first-ever market for trading in particulate matter emissions—launched in Gujarat’s Surat in 2019 through partnerships with the University of Chicago, Yale University, and the Abdul Latif Jameel Poverty Action Lab (J-PAL)—has reduced pollution by 20-30% among participating industries while lowering their compliance costs, according to a recent study published in The Quarterly Journal of Economics. Key Points to Ponder: • What is market-based particulate matter emissions trading scheme (ETS)? • What is the primary objective of the Emissions Trading Scheme (ETS) implemented in Surat? • What mechanism does the Surat ETS employ to regulate emissions? • Why was Surat chosen for the scheme? • How will ETS help reduce emissions? • Is there be a punitive action for non-compliance? • Know the significance of the Surat Emissions Trading Scheme (ETS). • What are the other innovative environmental governance schemes and policies in India? Key Takeaways: • The Surat Emission Trading Scheme (ETS) seeks to curb air pollution by allowing plants to buy and sell permits for particulate matter emissions to stay within a fixed pollution limit. • Each plant is given a limit on how much it can pollute. Those that stay within the limit can sell their unused permits to others that exceed theirs. This approach, known globally as a cap-and-trade system, has been used in Europe for greenhouse gases and in China for carbon emissions. • The Surat ETS is run by the Gujarat Pollution Control Board (GPCB) in collaboration with the Energy Policy Institute at the University of Chicago (EPIC), J-PAL, and industry associations. Surat was chosen for the pilot market as it is a highly industrialised city where industrial pollution contributes nearly a third of the ambient particulate matter, the study notes. • A cluster of industrial plants in Surat traded permits on a platform hosted by the National Commodities and Derivatives Exchange e-Markets Limited (NeML). Plants that failed to comply with emission caps or permit requirements were fined. • A randomised controlled trial (RCT), conducted between April 2019 and March 2021, studied 162 plants randomly assigned to participate in the emissions market and 156 that continued to follow existing particulate matter regulations. The study was conducted by researchers from EPIC, Yale University, and the University of Warwick. • It found that plants in the ETS reduced emissions significantly more than those under conventional regulation, and had permits to cover their emissions 99% of the time. These plants cut particulate matter emissions by 20–30%, while also lowering pollution control costs by 11%, thereby improving compliance. In contrast, plants outside the market failed to meet pollution norms for nearly a third of the study period. Do You Know: • The GPCB issued about 80% of the emissions cap in free permits, distributed in proportion to a plant’s emissions potential (e.g., boiler size), while the remaining 20% were auctioned weekly. Plants that failed to acquire sufficient permits to meet their caps were fined. • Launched in Surat, the Emissions Trading Scheme (ETS) is a regulatory tool that is aimed at reducing the pollution load in an area and at the same time minimising the cost of compliance for the industry. • The Emissions Trading Scheme (ETS) is a market in which the traded commodity is particulate matter emissions. The Gujarat Pollution Control Board (GPCB) sets a cap on the total emission load from all industries. Various industries can buy and sell the ability to emit particulate matter, by trading permits (in kilograms) under this cap. For this reason, ETS is also called a cap-and-trade market. Other Important Articles Covering the same topic: 📍Gujarat becomes first market in world for particulate matter emissions trading Previous year UPSC Prelims Question Covering similar theme: 8. The ‘Common Carbon Metric’, supported by UNEP, had been developed for (2021) (a) Assessing the carbon footprint of building operations around the world (b) Enabling commercial farming entities around the world to enter carbon emission trading (c) Enabling governments to assess the overall carbon footprint caused by their countries (d) Assessing the overall carbon footprint caused by the use of fossil fuels by the world in a unit time THE EDITORIAL PAGE THE BIT MODEL INDIA NEEDS Syllabus: Preliminary Examination: Current events of national and international importance. Main Examination: General Studies II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests. What’s the ongoing story: Prabhash Ranjan Writes: In an article in this paper, Rajesh Kumar Singh and Karamjeet Kaur (IE, March 17, ‘Thinking a BIT differently’) rightly welcomed the finance minister’s budget proposal to revamp India’s 2015 model bilateral investment treaty (BIT) to make it more investor-friendly. Key Points to Ponder: • What is a bilateral investment treaty? • Why Bilateral Investment Treaties (BITs) is required for foreign direct investment (FDI)? • What are the major reasons behind India’s recent move to renegotiate or terminate many of its Bilateral Investment Treaties (BITs)? • What are the highlights of India's 2016 Model Bilateral Investment Treaty (BIT)? • What are the implications of excluding the Most-Favoured-Nation (MFN) clause in India's Model BIT on foreign investment? • What do you understand by ‘Most-Favoured-Nation (MFN)’? Key Takeaways: Prabhash Ranjan Writes: • India has struggled to convince the world of its model BIT’s viability over the past decade. This shows that the model BIT has serious flaws, which the government now acknowledges. • Singh and Kaur propose a novel approach by suggesting that India adopt two distinct model BITs. One, it could adopt a host-state-friendly BIT with countries where it views itself as a capital importer. This defensive BIT would allow states greater control over foreign investments while granting fewer rights to foreign investors. In contrast, with countries where India exports capital, it could adopt an investor-friendly model for BITs, which provides extensive protections for foreign investors while allowing limited space for sovereign regulation. • The relationship between countries is dynamic. India signed a BIT with the UK in 1994 as a capital importer. However, according to the UK’s Department of International Trade, by 2021-2022, India had become a significant capital exporter to the UK. Likewise, India imports and exports capital to several western European, North American, African and Asian nations. Distinguishing between capital-exporting and capital-importing nations is quite difficult, making two model BITs impractical. Do You Know: • Article 1 of General Agreement on Tariffs and Trade (GATT), 1994, requires every WTO member country to accord MFN status (or preferential trade terms with respect to tariffs and trade barriers) to all other member countries. • Prabhash Ranjan Writes—The MFN clause is a fundamental principle of non-discrimination in international economic relations, ensuring that any benefits granted to one country are automatically extended to others. Contrary to Singh and Kaur argue, that the MFN clause undermines the carefully negotiated balance of a BIT, the MFN clause actually supports the treaty’s objectives by creating a level playing field. Other Important Articles Covering the same topic: 📍Thinking a BIT differently Previous year UPSC Prelims Question Covering similar theme: 9. Consider the following: (2021) 1. Foreign currency convertible bonds 2. Foreign institutional investment with certain conditions 3. Global depository receipts 4. Non-resident external deposits Which of the above can be included in Foreign Direct Investments? (a) 1, 2 and 3 (b) 3 only (c) 2 and 4 (d) 1 and 4 ECONOMY India, European Union weigh early harvest trade pact, says Commerce Secretary Syllabus: Preliminary Examination: Current events of national and international importance. Main Examination: General Studies II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests. What’s the ongoing story: With trade tensions triggering an urgency for trade diversification, India is exploring faster trade deals in the form of an ‘early harvest’ trade agreement with the European Union focused on core trade issues, Commerce Secretary Sunil Barthwal said on Tuesday. Key Points to Ponder: • What is ‘early harvest trade agreement’? • India is exploring faster trade deals in the form of an ‘early harvest’ trade agreement with the European Union—what are the highlights? • What is the primary objective of the proposed India-EU Early Harvest agreement? • What are the significant concern for India regarding the European Union's trade policies? • What are the key demands of the European Union in the India-EU FTA negotiations? • What are the challenges and opportunities associated with the India-EU Free Trade Agreement negotiations especially in the present geopolitical trade and tariffs conflict? Key Takeaways: • In trade parlance, an early harvest agreement between two trading partners helps countries identify certain products for tariff liberalisation pending the conclusion of Free Trade Agreement (FTA) negotiation. India had earlier signed a similar early harvest or mini-trade deal with Australia and is currently negotiating a comprehensive trade deal. • A similar strategy has been adopted with the US to negotiate a first tranche ahead of the full Bilateral Trade Agreement, for which the negotiations are underway. Officials indicated that the negotiations for the BTA with the US could be wrapped up “as soon as possible” with the outer limits being fall of this year. • In February, India and the European Union had held the tenth round of trade deal negotiations, where both countries had made considerable progress in agreeing on the norms that will guide dispute settlement under the pact but failed to make a significant breakthrough on rules of origin, which help determine the national source of a product. The 10th round of talks focused on potential market access in goods, services, investment and government procurement. • Prime Minister Narendra Modi and Ursula von der Leyen, President of the European Commission, had announced that both sides would aim to conclude the free trade agreement by the end of 2025. The two parties have been negotiating the agreement since July 2022 and have held ten rounds of talks. The 11th round of talks between the two trade partners is scheduled for May 12-16 in New Delhi. Do You Know: • A free trade agreement (FTA) between two trading partners is preceded by an early harvest program. This assists the two trading nations in determining which products should have their tariffs liberalized while the FTA negotiations are still ongoing. Its main purpose is to boost confidence between two commercial partners. Before a Free Trade Agreement (FTA) is signed, two nations (or regional trading blocs) may agree to liberalize tariffs on specific items under an Early Harvest Scheme (EHS). Other Important Articles Covering the same topic: 📍India-EU FTA Talks: Progress on dispute settlement, stalemate on rules of origin Previous year UPSC Prelims Question Covering similar theme: 10. Consider the following statements: (2023) The ‘Stability and Growth Pact’ of the European Union is a treaty that 1. limits the levels of the budgetary deficit of the countries of the European Union 2. makes the countries of the European Union to share their infrastructure facilities 3. enables the countries of the European Union to share their technologies How many of the above statements are correct? (a) Only one (b) Only two (c) All three (d) None Could Meta be broken up for being an illegal monopoly? A historic trial in US Syllabus: Preliminary Examination: Current events of national and international importance. Main Examination: General Studies II: Effect of policies and politics of developed and developing countries on India’s interests What’s the ongoing story: Social media giant Meta, parent to popular companies like Facebook, Instagram and WhatsApp, is on the stand. The allegation: it engaged in “illegal monopolisation” by buying out competitors — at the time Instagram (in 2012 for $1 billion) and WhatsApp (in 2014 for $19 billion) — in an anticompetitive fashion, described by regulators as a “buy-or-bury strategy”. Key Points to Ponder: • What is the Meta antitrust trial about? • What is an illegal monopoly? • What is “buy-or-bury strategy”? • What is the primary allegation made by the U.S. Federal Trade Commission (FTC) against Meta Platforms Inc.? • Which two major platforms did Meta acquire that are central to the FTC's antitrust case? • What challenges do regulatory bodies face in defining relevant markets in the digital economy, with reference to the Meta antitrust case? • What are the ethical considerations of the 'buy or bury' strategy? Key Takeaways: • Meta could be ordered to break off from these companies, setting up a landmark precedence in the technology sector. • It was in this context that Meta CEO Mark Zuckerberg took the witness stand on Monday in the consequential trial, which was first brought to court in 2020 under US President Donald Trump’s previous term, and defended against allegations that his company operates a social media monopoly. • The case was prepared by the Federal Trade Commission (FTC) and if the regulator manages to convince a Washington court to rule in its favour, it could lead to a split up of the $1.4 trillion company — the biggest splintering of a company in over four decades, when telecom giant AT&T was unwound. But more broadly, it could set a new precedence for how Big Tech companies operate. • It would also show the appetite the new US administration has to take on the Big Tech, especially as many of them have made a beeline to placate Trump, by adopting measures such as pausing diversity hires, stopping fact checks, and establishing a clearer communication line with the White House, among other things. Do You Know: • The regulator had alleged that Meta had illegally maintained its personal social networking monopoly through a years-long course of anticompetitive conduct. • According to the FTC’s complaint, Facebook targeted potential competitive threats to its dominance. Instagram, a rapidly growing startup, emerged at a critical time in personal social networking competition, when users of personal social networking services were migrating from desktop computers to smartphones, and when consumers were increasingly embracing photo-sharing. • The complaint alleged that “Facebook executives, including CEO Mark Zuckerberg, quickly recognised that Instagram was a vibrant and innovative personal social network and an existential threat to Facebook’s monopoly power”. • According to the FTC, Facebook (since rebranded to Meta) initially tried to compete with Instagram on the merits by improving its own offerings, but ultimately chose to buy Instagram rather than compete with it. “Facebook’s acquisition of Instagram for $1 billion in April 2012 allegedly both neutralises the direct threat posed by Instagram and makes it more difficult for another personal social networking competitor to gain scale,” the complaint said. • Around the same time, according to the complaint, Facebook perceived that “over-the-top” mobile messaging apps also presented a serious threat to the company’s monopoly power. Other Important Articles Covering the same topic: 📍Meta’s Zuckerberg eyed Instagram spinoff amid antitrust scrutiny, document shows EXPLAINED Trump’s sledgehammer Syllabus: Preliminary Examination: Current events of national and international importance. Main Examination: General Studies II: Effect of policies and politics of developed and developing countries on India’s interests What’s the ongoing story: President Donald Trump’s tariff actions are currently focused on China as the United States works on trade deals with other countries, including India. Key Points to Ponder: • Which Indian sectors are most vulnerable to increased U.S. tariffs under President Trump's policies? • What is the primary reason behind President Trump's imposition of high tariffs on imports? • What exactly describes the 'sledgehammer' approach in trade policy? • How has India responded to the U.S. tariffs under President Trump's administration? • What are the challenges and opportunities for India in diversifying its export markets in response to protectionist policies by major trading partners? Key Takeaways: • As it closes in on three months in office, the Trump administration is keen to demonstrate to the President’s MAGA base that he has kept his campaign promises — from tariffs to cracking down on immigration and “aliens”. • While the Chinese, the world’s second-largest economy and the world’s second superpower, have remained defiant, these US actions have impacted countries around the world in ways that have gone beyond just the economy and trade, and triggered disruptions and uncertainty. • India has been put in an uncomfortable diplomatic position, with the US, its strategic partner, having imposed costs on it, and moved transactionalism to the heart of the bilateral relationship. Do You Know: • Here are five elements that stand out in Trump’s chaotic view of the world, and their impact India and India-US ties— —Trump identified China as the biggest problem and concern for the US in his first term (2017-21). In its National Security Strategy, the Trump 1.0 administration named China as a strategic threat and a rival. Harold James, professor of history and international affairs at Princeton University, told Gideon Rachman, chief foreign affairs commentator at The Financial Times, last week that Trump is now making decisions in the same way as Russia’s President Vladimir Putin did in February 2022 about invading Ukraine — when no adviser had the courage to tell him that Ukraine would not fall in days or weeks. — The reason for imposing tariffs on all countries was to make sure that China is not able to reroute its products to the US through other Asian countries. The tariffs have impacted Indians — even though the lower rate applicable to India has given New Delhi an advantage over other Asian economies. — The second-order impact of Trump’s actions has been an erosion of goodwill and a real risk of lowering of trust for the US. — Precipitate action, including deportation, by the Trump administration against foreign students who may have participated in campus protests — or perhaps even got a parking ticket — is undermining the status of the US as the world’s favourite destination for educational opportunities. —As the Indian strategic establishment grapples with ways to navigate these challenges, policymakers have been trying to impress upon their US interlocutors the self-defeating consequences of punishing friends and allies, and the need to remain laser-focused on the adversary, China. Other Important Articles Covering the same topic: 📍C Raja Mohan writes: Xi Jinping is wooing America’s economic partners PRELIMS ANSWER KEY 1. (b) 2.(c) 3.(d) 4.(d) 5.(c) 6.(b) 7.(b) 8.(a) 9.(a) 10.(a) For any queries and feedback, contact priya.shukla@indianexpress.com Subscribe to our UPSC newsletter. Stay updated with the latest UPSC articles by joining our Telegram channel – IndianExpress UPSC Hub, and follow us on Instagram and X.
