UPSC GS 3

DISASTER JUSTICE: MEANING, SIGNIFICANCE, CHALLENGES, WAY FORWARD

Kerala’s decision to waive ₹18.75 crore in loans for Wayanad landslide survivors signals a shift toward financial rehabilitation. It addresses post-disaster debt traps, contrasts State welfare with rigid national frameworks, and highlights the need for catastrophe insurance and reforms to strengthen disaster justice and recovery systems.

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PM E-DRIVE SCHEME: SUCCESS, FEATURES, CHALLENGES AND WAY FORWARD

The PM E-DRIVE Scheme, replacing FAME-II with a ₹10,900 crore outlay, has driven over 22 lakh EV sales by January 2026, prioritising e-buses and two-wheelers. Aadhaar-linked e-vouchers and charging expansion improve delivery, but lithium dependence, grid greening, and infrastructure gaps demand stronger domestic manufacturing and ecosystem development.

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New Customs Baggage Policy 2026

The Central Board of Indirect Taxes and Customs has notified the Baggage Rules, 2026, raising duty-free limits for residents and tourists. The move supports ease of travel, consumption, and tourism, but raises enforcement challenges like valuation disputes and gold smuggling, requiring tech-enabled customs oversight.

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HIGHLIGHTS OF THE 16TH FINANCE COMMISSION RECOMMENDATIONS

The 16th Finance Commission backs 41% vertical devolution but reshapes horizontal criteria by adding States’ GDP contribution, balancing equity with performance. It proposes fiscal discipline through curbing off-budget borrowings, subsidy sunset clauses, and power reforms, while flagging cesses and surcharges as a key challenge to cooperative federalism.

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FISCAL FEDERALISM IN CRISIS: HOW BUDGET 2026-27 BURDENS THE STATES

Budget 2026–27 exposes strains in India’s fiscal federalism as the Centre retains policy control while shifting welfare costs to States through unfunded mandates and CSS changes. Non-shareable cesses shrink States’ revenues, social spending stagnates, and a capex-first approach sidelines human capital, prompting calls to rationalise cesses and revive cooperative federalism.

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Analysing the Viability of Extracting REEs from Fly Ash

India’s plan to extract rare earths from fly ash under Atma Nirbhar Bharat faces criticism as techno-economically unviable due to very low REE content. Experts warn it undermines fly ash reuse and creates waste challenges, advocating instead for sustainably exploiting high-grade monazite sands, with fly ash extraction limited to long-term research.

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ENVIRONMENTAL DIPLOMACY: INTERNATIONAL BIG CAT ALLIANCE (IBCA)

India will host the first Global Big Cat Summit in 2026, reinforcing leadership in environmental diplomacy through the International Big Cat Alliance. The alliance promotes South-South cooperation to conserve seven big cat species, addressing habitat loss, conflict, and poaching through strong institutions, community-led conservation, and technology-driven solutions.

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CITIES CAN NO LONGER BEAR THE BURDEN OF RURAL MIGRATION

The Economic Survey 2025–26 cautions that unchecked rural–urban migration strains cities and weakens villages through a care drain. Existing schemes fall short. It calls for holistic rural revival by boosting non-farm jobs, local governance, and rural–urban integration to achieve sustainable, inclusive growth.

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ECONOMIC SURVEY 2025-26: HIGHLIGHTS, ASSESSMENT, OUTLOOK

The Economic Survey 2025–26 projects 7.4% GDP growth in FY26, showing India’s resilience amid global stress. Broad-based growth spans agriculture, PLI-led manufacturing, and services exports. Prudent fiscal policy, stable inflation, reforms, and inclusion strengthen long-term, inclusive growth toward India@2047.

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Van (Sanrakshan Evam Samvardhan) Adhiniyam: Impact on Economy, Environment & Forest Rights

The amendment to the Van (Sanrakshan Evam Samvardhan) Adhiniyam allows private commercial plantations on forest land, exempt from NPV and CA, to support Make in India and the paper industry. However, it risks weakening forest protection, promoting monocultures, and clashing with Forest Rights Act safeguards.

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NEARLY HALF OF THE GLOBAL POPULATION WILL FACE EXTREME HEAT BY 2050

An Oxford study warns that with 2°C warming, nearly half the world, especially India, will face extreme heat by 2050. Despite Heat Action Plans, ICAP, and judicial recognition of climate rights, weak implementation, urban heat stress, and cooling demands call for a stronger, integrated response.

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India-EU FTA Explained: Opportunities, Challenges like CBAM, and the Way Forward

India and the EU have concluded the BTIA, creating a two-billion-people market. By cutting tariffs and opening services, it boosts Indian exports, global value-chain integration, and IMEC. Despite CBAM and ratification hurdles, it marks a historic strategic and economic compact.

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