Economy
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
198 articles in this topic
Articles on Government Policy
GST Reforms: Home Minister to open talks for Consensus on Rate Rationalisation
Context The Union Home Minister is set to lead consultations with states and key central ministries to push forward long-pending reforms to the Goods and Services Tax (GST) structure. Rate Rationalisation A key long-pending proposal is to eliminate the 12% slab to move toward a simplified three-rate structure. The 12% slab currently includes items like packaged food (condensed milk, fruit juices), household goods (furniture, sewing machines), and medical supplies (diagnostic kits, bandages).
Green Revolution: Its Legacy and India’s Strategic Role in Agricultural R&D
Context India is facing both a responsibility and a historic opportunity — to repay the debt owed to regions that fueled India’s food security, and to reimagine agriculture for a sustainable future. About the Green Revolution The term ‘Green Revolution’ was coined by William S. Gaud, then Administrator of the United States Agency for International Development (USAID), in 1968.
India Officially Launched Its First-ever E‑truck Incentive Scheme
Context The Centre unveiled a scheme to provide financial incentives for purchase of electric trucks under the PM E-Drive initiative, where a sum of ₹500 crore has been set aside for 5,600 electric trucks. About This is India’s first dedicated scheme for electric trucks, which were not included under the earlier FAME (Faster Adoption and Manufacturing of Electric Vehicles) scheme. Eligibility Conditions: Manufacturers must provide a battery warranty of 5 years or 5 lakh kilometres, whichever is
Panch Sankalpa of NEP 2020 to Guide Universities in Building Viksit Bharat
Context The Union Education Minister inaugurated the two-day Vice-Chancellors’ Conference of Central Universities at Kevadia, Gujarat, to assess the implementation of the National Education Policy (NEP) 2020. Progress in Higher Education in India Total Enrollment Growth: Total student enrollment has reached 4.46 crore, reflecting a 30% increase since 2014–15. Female Empowerment: Female enrollment has surged by 38%, and the Gross Enrollment Ratio (GER) for women now exceeds that of men.
How Cooperatives Can Boost MSME Potential?
On July 5, 2025, India marks both the fourth anniversary of its Ministry of Cooperation and the International Day of Cooperatives, during a year globally recognized as the United Nations International Year of Cooperatives.
Chemical Industry: Powering India’s Participation in Global Value Chains: Report
Context NITI Aayog has released its report Chemical Industry: Powering India’s Participation in Global Value Chains. About This report offers an extensive analysis of India’s chemical sector, highlighting both opportunities and challenges, and outlining a pathway for positioning India as a key player in global chemical markets. The chemical industry is a vast and diverse sector that encompasses the production, transformation, and distribution of chemical substances.
WHO’s “3 by 35” Initiative
In News The World Health Organization (WHO) has launched the “3 by 35” Initiative, calling on countries globally to increase taxes on tobacco, alcohol, and sugary drinks. About The world faces an urgent challenge of non-communicable diseases (NCDs) such as heart disease, cancer, and diabetes now account for over 75% of global deaths. Simultaneously, shrinking development aid and rising public debt have strained health systems, especially in low- and middle-income countries.
8 Years of Goods and Services Tax (GST)
In Context India has completed eight years since the implementation of the Goods and Services Tax (GST) on July 1, 2017, a significant reform aimed at creating a One Nation, One Tax regime. Key Aspects of GST Destination-Based Indirect Tax: GST is a destination-based tax, meaning the tax revenue accrues to the State where the goods or services are consumed, not where they are produced. This is a key shift from the earlier origin-based taxation system.
India to Cut Logistics Cost to 9% by Year-End
Context The Union Road Transport and Highways Minister has said that Indias logistics cost will come down to 9% by the Year-End. Background Logistics cost refers to the total expenditure incurred to move goods from the point of origin to the point of consumption. It includes Transportation cost, Warehousing cost, Inventory carrying cost and Packaging and administrative cost.
Steel Industry in India
In News Recently ,the Ministry of Steel has extended Bureau of Indian Standards (BIS) quality norms to steel inputs and imports, giving industry players less than one working day to comply. India’s Steel Sector Steel has been a key driver of industrialization and is considered a foundation of economic development. As both a raw material and intermediate product, its production and consumption reflect a nations growth.
India’s Aviation Sector Needs to Address Safety Concerns
The recent crash of Air India Flight, en route to London Gatwick, in Ahmedabad has sent shockwaves through the aviation industry and the nation demanding to address the safety related concerns.
Critical Importance of the Next Census for India’s Economy
India’s upcoming Census 2027 is a cornerstone for economic planning and governance that aims to provide crucial data that influences everything from inflation tracking to urban development.
India’s IBC Framework: Balancing Resolution with Recovery
Context Over eight years since its enactment, India’s Insolvency and Bankruptcy Code (IBC), 2016 has significantly altered the country’s credit landscape. How has IBC helped improve resolutions? Since the introduction of IBC, India has improved its Ease of Doing Business ranking (basis World Bank report 2020), particularly in ‘Resolving Insolvency’, from 136 in 2016 to 52 in 2020.
Govt Notifies SEZ reforms to Boost Semiconductor, Electronics Component Manufacturing
In News The Union government notified key amendments to the Special Economic Zones (SEZ) Rules, 2006, to ease the establishment of semiconductor and electronics component manufacturing units. About Special Economic Zones (SEZs) Definition: They are designated areas within a country that operate under different economic regulations compared to the rest of the nation. Purpose: The primary goal of establishing SEZs is to promote rapid economic growth by attracting domestic and foreign investment, b
NHAI Releases First-Ever Asset Monetisation Strategy Document
Context National Highways Authority of India (NHAI) released its first ever ‘Asset Monetization Strategy for the Road Sector’. What is Asset Monetization? Asset monetization, also commonly referred to as asset or capital recycling, is a widely used business practice globally.
Consultative Regulation-making
Context The Reserve Bank of India (RBI) issued a policy framework for how it will publish regulations, directions, guidelines and notifications. Background This follows a similar move by the Securities and Exchange Board of India (SEBI), which published regulations setting out the procedure it would follow to issue regulations. Both RBI and SEBI are statutory regulators with quasi-legislative powers, have initiated reforms to improve transparency and accountability in regulation-making.
Demand for Compulsory Licensing for Rare Disease
Context A growing number of rare disease patients in India are urging the government to invoke the compulsory licensing provision under the Indian Patents Act, 1970. About Compulsory licensing is a legal tool under Section 84 of the Indian Patents Act, 1970, which allows the government or any third party to manufacture a patented product or use a patented process without the consent of the patent owner in certain conditions. It aims to protect public health and access to affordable medicines.
Guidelines For Electric Passenger Vehicle Manufacturing Scheme
Context The Ministry of Heavy Industries (MHI) has notified the detailed guidelines for the “Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI)”, aiming to position India as a major electric vehicle (EV) manufacturing hub. Significance of the Scheme Encourages cutting-edge EV technology transfer to India. It strengthens Make in India and Aatmanirbhar Bharat initiatives.
Opportunity for Investment in India’s Aviation Sector
In News Prime Minister Narendra Modi recently highlighted Indias rapidly growing aviation sector as a major investment opportunity. Indias aviation sector It is rapidly expanding, driven by rising demand and strong government support through strategic policies. This transformation has made India the world’s third-largest domestic aviation market, after the U.S.
Government Achieves Fiscal Deficit Target of 4.8% for FY25
Context The Government of India has successfully met its fiscal deficit target of 4.8% of GDP for the financial year 2024-25, as per provisional data released by the Controller General of Accounts (CGA). What is the fiscal deficit? Fiscal Deficit is defined as excess of total budget expenditure (revenue and capital) over total budget receipts (revenue and capital) excluding borrowings during a fiscal year.