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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
Third Anniversary of the National Logistics Policy (NLP)
Context The Department for Promotion of Industry and Internal Trade (DPIIT) commemorates the third anniversary of the National Logistics Policy (NLP), launched in 2022. Key Achievements of India’s Logistics Sector The Unified Logistics Interface Platform (ULIP) has facilitated secure Application Programming Interface (API) integration across more than 30 digital systems. Ranking in 2023 Logistics Performance Index (LPI): India was ranked 38th place out of 139 nations, a notable improvement of si
CII Suggested Framework For a National Global Capability Centres (GCC) Policy
Context The Confederation of Indian Industry (CII) has unveiled a proposed National Framework for Global Capability Centres (GCCs). What are Global Capability Centres? Global In-house Centres or Captives (GICs) or Global Capability Centres (GCCs), are mainly offshore centres established by global level firms/MNCs to provide various services to their parent organisations.
Unlocking Innovation with India’s Procurement Reforms
Procurement policies and frameworks in India, often designed with transparency and cost-efficiency, frequently killing innovation by prioritising procedural compliance over scientific needs.
GST Reforms to Boost India’s Drone Ecosystem
Context The slash in GST for drones by fixing it at a uniform 5 percent in the 56th GST Council meet is set to boost the countrys rapidly growing drone ecosystem. Drone Ecosystem According to industry estimates, the global drone market is valued at over $30 billion in 2025 and is projected to reach $90–100 billion by 2030, driven by rapid adoption of AI, automation, and 5G integration. India is incentivising indigenous drone and counter-drone technologies with USD 230 million support packages, t
Impact of GST Reforms on Cooperative Sector
Context The government has said the GST reforms will strengthen the cooperative sector, make their products competitive, increase demand for their products and increase the income of cooperatives. About In the dairy sector: The tax on butter, ghee and similar products has been reduced from 12% to 5%. GST on milk cans made of iron, steel or aluminium has also been lowered from 12% to 5%.
Next-Gen GST Reforms to Take Effect from September 22
More About the News 0% GST on vital goods/services: Basic food items, health and life insurance, educational materials, select medical devices. 33 life-saving drugs + 3 key cancer medicines have zero GST. Benefits of Key Changes For Consumers: Lower living costs and improved access to healthcare and education due to reduced or zero GST.
Scheme to Promote Critical Mineral Recycling in the Country
Context The Union Cabinet chaired by PM Modi approved a Rs.1,500 crore Incentive Scheme to develop recycling capacity in the country for the separation and production of critical minerals from secondary sources. What are Critical Minerals? These are minerals that are essential for economic development and national security.
GST 2.0: A Landmark in India’s Tax Journey
Recently, the 56th GST Council, chaired by Union Finance Minister, has approved Next-Gen GST reforms, i.e. GST 2.0 that focuses on improving the lives of the common man and ensuring ease of doing business for all with a broader vision of a Viksit Bharat 2047.
APEDA Launches BHARATI Initiative to Boost Agri-food Exports
In News The Agricultural and Processed Food Products Export Development Authority (APEDA) launched its new initiative BHARATI (Bharat’s Hub for Agritech, Resilience, Advancement and Incubation for Export Enablement). Key Features of BHARATI Startup-Centric Initiative: Supports 100 agri-food and agri-tech startups in the inaugural cohort. Three-Month Acceleration Programme: Focus on product development, export readiness, regulatory compliance, market access, and collaborative solutions.
PM Urges Indians to Embrace ‘Vocal for Local’ Mantra
Context Recently, in his latest Mann Ki Baat address, the Prime Minister of India renewed his call for citizens to adopt the mantra of ‘Vocal for Local’, emphasizing the importance of supporting indigenous products to build a self-reliant India. About the ‘Vocal for Local’ Initiative It was launched by NITI Aayog under its Aspirational Blocks Programme in 2024. It emphasizes supporting locally made products, artisans, and industries to boost India’s economy and reduce dependency on imports.
India’s Vocational Training System & Employability
Context India needs to address the long-standing gaps in its vocational education and training (VET) systems to truly transform its growth model. About the India’s Vocational Training System It is one of the largest in the world, designed to equip youth and workers with industry-relevant skills across sectors. It is overseen by the Ministry of Skill Development and Entrepreneurship (MSDE) and regulated by the National Council for Vocational Education and Training (NCVET).
PM Announced Next-gen GST Reforms
Context Recently, the Prime Minister of India has unveiled a new vision for India’s Goods and Services Tax (GST) regime aimed at simplifying tax structures benefiting the poor, middle class, entrepreneurs, traders, and business owners. Suggestions for Future Improvements Settle classification disputes to reduce litigation; Correct inverted duty structures, especially in textiles and MSMEs; Establish GST Appellate Tribunals for faster resolution of disputes; Enhance digital infrastructure for smo
Lok Sabha Passes Income Tax (No. 2) and Taxation Laws (Amendment) Bills
Context The Lok Sabha has passed the Taxation Laws (Amendment) Bill, 2025 and the Income-Tax (No.2) Bill, 2025. About The Income-Tax (No.2) Bill, 2025 The Bill seeks to replace the Income-tax Act, 1961. It simplifies tax language, clarifies deductions, and strengthens cross-referencing across provisions.
ELI Scheme: Debunking the Myth of Job Creation
Recently, the Union Government approved the Employment Linked Incentive (ELI) Scheme to support employment generation. However, it raises concerns regarding its design, target population, and its potential to reinforce, rather than reduce, existing labour market inequalities.
States Must Fix Their Own Economies and Address Structural Issues
A recent report by Crisil projects revenue growth of 7–9% in FY26 for India’s 18 largest states (covering 90% of GSDP), slightly up from 6.6% in FY25.
Cabinet Clears ₹6,520 crore For PM Kisan Sampada Yojana
Context The Union Cabinet increased the budgetary outlay for the flagship scheme Pradhan Mantri Kisan Sampada Yojana (PMKSY) by Rs 1,920 crore to Rs 6,520 crore to boost the food processing sector. About Of the total outlay, ₹1,000 crore has been earmarked to set up 50 Multi-Product Food Irradiation Units under the component scheme Integrated Cold Chain and Value Addition Infrastructure (ICCVAI). And 100 NABL-accredited Food Testing Laboratories under the Food Safety and Quality Assurance Infras
What State Finances Tell Us About the Economy?
State finances and budgets reflect both macroeconomic resilience and local governance priorities, from infrastructure and education to healthcare and local employment initiatives.
Textile Sector in India
Context PM Modi in his Mann Ki Baat program, remarked that the textile sector has become a major strength of the country. Overview of Indias Textile Industry Contribution: The textile and apparel industry contributes 2.3% to our GDP, 13% to industrial production, and 12% to exports. Export Basket: India exported textile items worth US$ 34.4 billion in 2023-24, with apparel constituting 42%, followed by raw materials/semi-finished materials at 34% and finished non-apparel goods at 30%.
Study on GST Burden on Indian Households
In Context A recent study analysing Indias Goods and Services Tax (GST) regime using the 2022–23 Household Consumption Expenditure Survey (HCES) has revealed that the bottom 50% of consumers bear the same GST burden as the middle 30%, raising important questions about the tax systems progressivity and equity. How Is GST Intended to Work? GST is a consumption-based indirect tax and is designed for simplicity and broad-based collection.
Government aims to raise share of tourism in economy to 10%
Context The Union Minister of Culture and Tourism has said that the government is committed to raising the contribution of tourism in the country’s economy to 10% by 2047. India’s Tourism Sector: Key Highlights India’s tourism sector, rich in heritage, culture, and diversity, is emerging as a global favorite and a key driver of economic growth. India’s economy is $4 trillion today, expected to reach $32 trillion by 2047.