Economy

The India-UK Comprehensive Economic and Trade Agreement (CETA) will come into force on 15 July 2026, after both sides resolved a dispute over the UK's new steel safeguard measures that had delayed the rollout. Signed in July 2025, the deal grants duty-free access to 99% of India's exports and takes effect alongside the Double Contribution Convention (DCC) on social security. This article explains what CETA is, the gains for India's exporters and professionals, the steel compromise, the concessions to the UK, how the pact fits India's wider FTA strategy, and the concerns it raises.

Tripura is preparing to showcase its GI-tagged Tripura Queen Pineapple at a Global Pineapple Festival in Delhi, while the Centre and the State have launched Mission Queen Pineapple to strengthen cultivation, processing, branding and exports of the state fruit. The issue is important for UPSC because it links horticulture, Geographical Indications, tribal livelihoods, food processing, agri-exports and North East regional development.

India is preparing to move beyond E20 fuel by giving tax relief to higher ethanol-petrol blends and creating standards for fuels such as E22, E25, E27 and E30. The move aims to reduce crude-oil import dependence, support farmers and promote cleaner mobility, but it has also raised concerns about vehicle compatibility, mileage, consumer choice and ethanol supply sustainability.

The Reserve Bank of India has revived a 2013-style FCNR(B) swap facility to attract foreign currency deposits from non-resident Indians, support dollar inflows and reduce pressure on the rupee. The move comes amid external-sector concerns, including rupee volatility, global uncertainty and the need to strengthen India’s Balance of Payments position.

The Union Government, Assam and Nagaland have signed a tripartite MoU to facilitate mineral oil operations in the Assam-Nagaland boundary areas, where exploration had been stalled due to border and law-and-order concerns. The development is important for UPSC because it links energy security, cooperative federalism, inter-state boundary disputes, Article 371A, environmental clearance and India’s dependence on hydrocarbon imports.

Amid rising public attention on youth and jobs, India's employment data is again under the scanner. Private data from the Centre for Monitoring Indian Economy (CMIE) shows the share of working-age Indians holding a job falling over the past decade, even as official Periodic Labour Force Survey (PLFS) figures from the government show participation and employment ratios improving. This article explains the core concepts — working-age population, labour force, the Employment Rate (Worker Population Ratio), Labour Force Participation Rate and Unemployment Rate — clarifies why these data sources diverge, and links the debate to "jobless growth" and India's demographic dividend.

A recent personal finance report highlighted how NRIs may earn higher returns by using leverage to invest in Foreign Currency Non-Resident Bank deposits, after the RBI opened a special swap window for fresh 3–5 year FCNR(B) deposits till September 30, 2026. The issue is important for UPSC because it connects NRI deposits, foreign capital inflows, exchange-rate management, banking regulation and external-sector stability.

Prime Minister Narendra Modi chaired the 11th Governing Council Meeting of NITI Aayog on 11 June 2026, where states were urged to strengthen district-level growth assessment, attract investments, focus on ODOP-led exports, affordable energy, skilling, women-led development and Viksit Bharat 2047. The meeting is important for UPSC because it connects cooperative federalism, decentralised economic planning, energy security and district-level data systems.

Urea import prices have fallen sharply in National Fertilizers Ltd’s latest tender after China partially relaxed export restrictions, giving India relief during the kharif season. The issue is important for UPSC because it links fertiliser subsidy, global supply chains, China’s export policy, farm input security, fiscal pressure, soil health and India’s dependence on imported fertilisers.

The Zojila Tunnel project recently achieved a major breakthrough at Minamarg in Kargil district, bringing India closer to year-round road connectivity between Jammu & Kashmir and Ladakh. The tunnel is significant for UPSC because it connects infrastructure development, Himalayan geology, disaster risk, border-road strategy, tourism, regional integration and engineering methods used in fragile mountain terrain.

A recent Indian Express report highlighted that fertility rates are falling across the world despite very different economic and social conditions, while several governments are trying cash incentives, IVF support and housing policies to encourage childbirth. For UPSC, the issue is important because it links population, demographic dividend, ageing, women’s autonomy, social policy, health systems, labour markets and India’s long-term development planning.

India's fertiliser subsidy bill for 2026-27 is set to overshoot the Budget Estimate of about Rs 1.71 lakh crore, with the Department of Fertilizers seeking a near-100% hike as the West Asia crisis and the Strait of Hormuz disruption push up the cost of imported urea, DAP and feedstock. State-owned firms have floated fresh import tenders and the government is exploring supplies from Russia. This article explains how India's fertiliser subsidy works, the Nutrient Based Subsidy (NBS) and urea regimes, the DBT mechanism, India's deep import dependence, and the fiscal and policy challenges ahead.