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Government Policy
Welcome to the dedicated study hub for Government Policy, a cornerstone of your UPSC Civil Services Examination preparation, particularly within the broader domain of Economy. Government Policy
199 articles in this topic
Articles on Government Policy
PSU Disinvestment as a Pillar of Growth-Oriented Fiscal Consolidation
Context The Union Budget 2026–27 reiterates the government’s preference for growth-led fiscal consolidation, balancing deficit reduction with sustained capital expenditure, and disinvestment. About Economic growth has been prioritised over fiscal deficit reduction to sustain demand and investment. Capital expenditure and infrastructure spending have been protected due to their high growth multiplier effects.
16th Finance Commission: Key Recommendations and Implications
Published on: 03 February, 2026 Recently, the Report of the 16th Finance Commission, Chaired by Dr Arvind Panagariya, was tabled in Parliament for the five-year period between 2026-27 and 2030-31.
Marginal Hike For Agriculture
In News Farmer organisations across the political spectrum criticised the Union Budget 2026–27. Agricultural Sector Announcements in Union Budget 2026–27 The Union Budget 2026–27 has increased the allocation for the agriculture sector by 2.6%, adding about ₹3,000 crore compared to last year, even as the Economic Survey reported a slowdown in agricultural growth. The Finance Minister proposed ₹1.3 lakh crore for agriculture, slightly higher than the 2025–26 Budget Estimate and the Revised Estimat
Government Constituted Panel to look at AI Impact on Jobs and Services
Context Union Finance Minister in her Budget Speech said a high-level ‘Education to Employment and Enterprise’ Standing Committee will be formed to recommend measures that focus on the services sector. Terms of reference of the high-level standing committee, according to Budget documents Identify services sub-sectors with potential for growth, employment and exports. Assess the impact of emerging technologies, including AI, on jobs and skill requirements.
Union Budget 2026: Key Highlights
Context Recently, the Finance Minister Nirmala Sitharaman presented the Union Budget 2026-2027 in Parliament. Key Highlights of Union Budget 2026–27 It is the first Union Budget prepared in Kartavya Bhawan, and the Finance Minister underscored it is guided by three kartavya (duties) to accelerate growth, build people’s capacity, and ensure inclusive development. text Read More
Health in the Union Budget 2026-27: Promises, Priorities, and the Reality
Published on: 02 February, 2026 Recently, the Finance Minister presented the Union Budget for 2026-27 signals recognition of India’s growing health and care needs.
Health in the Union Budget 2026-27: Promises, Priorities, and the Reality
Published on: 02 February, 2026 Recently, the Finance Minister presented the Union Budget for 2026-27 signals recognition of India’s growing health and care needs.
Amendments to New Drugs and Clinical Trials Rules, 2019
Context The Union Ministry of Health and Family Welfare has notified key amendments to the New Drugs and Clinical Trials (NDCT) Rules, 2019, to reduce regulatory burden and promote ease of doing business. Rational behind the reforms India is one of the worlds largest suppliers of generic medicines and vaccines, accounting for nearly 20% of global generic drug exports by volume, according to the World Health Organization (WHO). Issue: The industry stakeholders have long flagged lengthy regulatory
Economic Survey: India Must Shift to Entrepreneurial State
Context The Economic Survey 2025-26 borrows a phrase from Mariana Mazzucato to describe what Indian governance must become: an Entrepreneurial State. What is an Entrepreneurial State? It is a deeper shift towards entrepreneurial policymaking under uncertainty: a state that can act before certainty emerges, structures risk rather than avoiding it, learns systematically from experimentation, and corrects course without paralysis.
Swadeshi as a Disciplined Strategy
Context As per the Economic Survey 2025-26, Swadeshi is “inevitable and necessary” as the global trading environment is marked by export controls, technology denial regimes and carbon border mechanisms. About The Survey noted that, unlike corporates in post-war America, Germany, Japan, and East Asia, Indian firms show a relative lack of appetite for long-term risk absorption and nation-building investments. It said Indian firms show limited willingness for long-term risk absorption and global co
Eco Survey Calls for Relaxing FRBM for Centre
Context The Economic Survey 2025-26 has argued in favour of a delay in strict fiscal targets for the Centre, such as those that had been set under the Fiscal Responsibility and Budget Management Act. Highlights of survey on Fiscal Targets After spiking to 9.2% of GDP during the pandemic year of 2020-21, the Centre’s fiscal deficit was on target to be 4.4% at the end of the current financial year, in line with commitment to halve the FY21 fiscal deficit in five years. India lowered its general go
Economic Survey 2025-26 Key Highlights
Context Recently, the Union Minister for Finance and Corporate Affairs tabled the Economic Survey 2025-26 in Parliament. What is an Economic Survey? It is an official annual document that reviews the state of the Indian economy over the past year and outlines key economic trends, challenges, and policy directions.
Public Sector Enterprises in India: A Decade of Transformation
Published on: 30 January, 2026 Across the world, the decline of centralised economic planning has reshaped the role of state-owned enterprises, pushing them toward efficiency, competitiveness, and innovation.
One District One Product (ODOP)
Context The One District One Product (ODOP) initiative has completed 8 years of transformative impact by promoting traditional industries. About The ODOP initiative, spearheaded by the Department for Promotion of Industry and Internal Trade (DPIIT), aims to unlock each district’s unique economic potential, drive balanced regional growth, and equip local artisans to compete in national and global markets. Product Selection Framework under ODOP: Products are selected by States and Union Territorie
Agricultural Subsidies and Need for Reform
Context The food subsidy is likely to touch Rs 2.25 trillion and the fertiliser subsidy may go up to Rs 2 trillion, in a total budget of around Rs 51 trillion. Agricultural Subsidies in India Agricultural subsidies refer to financial support and incentives provided by the government to farmers to reduce production costs, stabilise farm incomes, ensure food security, and promote adoption of modern inputs and sustainable practices. Price Support: Government supports farmers by setting Minimum Supp
Reimagining Cooperatives in India
Published on: 19 January, 2026 With the United Nations declaring 2025 as the International Year of Cooperatives (IYC) under the theme “Cooperatives Build a Better World”, India’s cooperative sector has gained renewed global attention.
Achieving Efficiencies in MSME Sector through Convergence of Schemes: NITI Aayog
Context The NITI Aayog has released a report titled ‘Achieving Efficiencies in MSME Sector through Convergence of Schemes’, presenting a detailed framework to strengthen the effectiveness of government interventions in the MSME sector. Need for Convergence of Schemes Avoid duplication and inefficiency: The Ministry of MSME currently oversees 18 schemes with overlapping objectives, leading to fragmented implementation and reduced outreach. Enhance efficiency and outcomes: Convergence simplifies a
Ministry of Rural Development Launches National Campaign on Entrepreneurship
In News A National Campaign on Entrepreneurship was launched to strengthen non-farm livelihoods for rural women under Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM). Importance of Rural Entrepreneurship Reducing Overdependence on Agriculture: Agriculture still employs 45% of India’s workforce but contributes only 18% to GDP. Non-farm rural enterprises help absorb surplus labour.
Faster, Demand-led Approach Needed for PSEs Privatisation: CII
Context Recently, the Confederation of Indian Industry (CII), in its recommendations for the Union Budget 2026–27, has urged the government to adopt a faster, demand-led approach to the privatisation of Public Sector Enterprises (PSEs). Disinvestment of Public Sector Enterprises (PSEs) It refers to the process by which the government reduces its stake in state-owned enterprises, either partially or fully. It aims to infuse market efficiency, attract private investment, and reduce the fiscal burd
District-Led Textiles Transformation (DLTT)" Plan
Context The Ministry of Textiles has unveiled the District-Led Textiles Transformation (DLTT) initiative, a strategic initiative designed to catalyze inclusive and sustainable growth across Indias textile landscape. About The Ministry plans to transform 100 high-potential districts into Global Export Champions and develop 100 Aspirational Districts into self-sufficient hubs by adopting a district-level, sector-specific approach. The Ministry analyzed all districts using a data-driven scoring met