UPSC economy

ASHTALAKSHMI GROWTH MODEL: TRANSFORMING NORTHEAST INDIA INTO A GROWTH ENGINE

The Ashtalakshmi Growth Model transforms Northeast India into a central economic engine. By leveraging the HIRA connectivity model, PM-DevINE funding, and the "Act Fast" policy, India actively integrates the region with Southeast Asia while boosting organic agriculture and green energy.

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DROP SHIPPING: BUSINESS MODEL, WORKING MECHANISM, BENEFITS AND RISKS

Dropshipping is an inventory-free retail model where sellers forward orders to suppliers who ship directly to consumers. While it offers low-risk entrepreneurship, it requires strict adherence to GST, customs, and consumer protection laws to mitigate supply chain and fraud risks.

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FCNR(B) ACCOUNT: FEATURES, BENEFITS AND IMPORTANCE FOR NRIS

FCNR(B) accounts allow Non-Resident Indians to maintain fixed deposits in foreign currencies like the US Dollar. They offer tax-free returns and full repatriability, making them essential instruments for the RBI to manage forex reserves and ensure rupee stability.

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INDIA'S INCLUSION IN THE BLOOMBERG GLOBAL BOND INDEX

India targets inclusion in the Bloomberg Global Aggregate Bond Index to attract foreign capital, lower borrowing costs, and strengthen the rupee. However, operational hurdles like settlement delays remain, prompting government reforms to ensure macroeconomic stability and secure index entry.

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RBI MONETARY POLICY JUNE 2026: KEY DECISIONS, IMPLICATIONS FOR INDIAN ECONOMY

The June 2026 RBI MPC meeting maintained the repo rate at 5.25% while revising FY27 GDP growth down to 6.6% and inflation up to 5.1%. The RBI also introduced key capital inflow measures and is evaluating polymer currency notes.

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INDEX OF INDUSTRIAL PRODUCTION (IIP) TRENDS

The government revised the Index of Industrial Production (IIP) base year to 2022-23, adding sectors like water and waste management. Driven by manufacturing and capital goods, industrial output recorded a 4.9% growth in April 2026 under this new series.

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MIDDLE EAST CRISIS AND INDIA'S ENERGY VULNERABILITY

The Middle East crisis highlights India's fossil fuel vulnerability, necessitating energy austerity. Transitioning to renewable energy, addressing fragmented governance through the proposed DERS, and leveraging nuclear expansion via the SHANTI Act are critical steps toward ensuring long-term energy Atmanirbharta.

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BHARAT AUDYOGIK VIKAS YOJNA (BHAVYA) INFRASTRUCTURE FRAMEWORK

The ₹33,660-crore BHAVYA scheme by DPIIT aims to develop 100 plug-and-play industrial parks across India by 2032. Managed by NICDC via SPVs, it leverages a competitive challenge-based selection process to enhance the manufacturing ecosystem and PM Gati Shakti integration.

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RBI APPROVES ₹2.86 LAKH CRORE SURPLUS TRANSFER TO CENTRAL GOVERNMENT

The RBI transferred a record ₹2.87 lakh crore surplus to the Central Government for FY26 under the Economic Capital Framework. This crucial non-tax revenue aids fiscal consolidation, effectively manages the fiscal deficit, and balances monetary stability with national public expenditure.

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INDIA'S AGRICULTURAL EXPORT RESILIENCE AND TRADE POLICY

India's agricultural exports demonstrated remarkable resilience, growing to $53.1 billion in 2025-26 despite aggressive US tariffs. This was driven by strategic market diversification to Asia and Europe, offsetting challenges from stringent non-tariff barriers and WTO subsidy disputes over MSP.

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FISCAL HEALTH INDEX 2026 BY NITI AAYOG

 NITI Aayog’s Fiscal Health Index 2026 assesses states’ finances, grouping them as Achievers or Aspirational. It warns that weak revenue mobilisation, rising committed expenditure, and poor transparency threaten stability. Examples like Odisha’s improvement and Punjab’s stress highlight the need for fiscal discipline and FRBM adherence.

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Restoring river biodiversity through river ranching

River Ranching is a scientific fisheries management initiative implemented under the Pradhan Mantri Matsya Sampada Yojana (PMMSY) to restore depleted fish populations in India’s rivers. The programme involves releasing hatchery-reared fingerlings of native species into natural water bodies to enhance fish production, conserve riverine biodiversity, and strengthen ecological balance. Implemented by the Department of Fisheries with the National Fisheries Development Board (NFDB) as the nodal agency, it covers major river basins such as the Ganga, Brahmaputra, and Mahanadi. The initiative also supports sustainable inland fisheries, improves food security, and enhances the livelihoods of river-dependent communities while contributing to the broader goal of sustainable river ecosystem management.

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