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
Promotion of Organic Farming
Context Indian Overseas Bank (IOB), Amul, and Rich Plus have signed a tripartite Memorandum of Understanding (MoU) to promote organic farming in India. More About the News Launch of Organic Farming Card: A co-branded Organic Farming Card has been introduced for account holders of IOB who are engaged in organic farming. This card will enable farmers to access discounted organic agricultural inputs through Amul’s certified retail outlets.
NITI Aayog Releases Report on “Designing a Policy for Medium Enterprises”
In Context The MSME sector is a cornerstone of India’s economy, contributing nearly 29% to GDP, 40% to exports, and employing over 60% of the workforce. However, its overwhelmingly skewed in favour of micro enterprises: Challenges Faced by Medium Enterprises Access to Finance is Limited: Only 37% of medium enterprises can access formal loans. Collateral-heavy procedures, poor risk assessment, and lack of dedicated credit lines are barriers.
Rising North East Investors Summit 2025
Context The Prime Minister inaugurated the Rising North East Investors Summit 2025. North Eastern Region (NER) The NER comprises eight States viz. Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.
Rising Northeast: A Vision For The Northeast India
The Ministry of Development of North-Eastern Region (DoNER) is organizing the ‘Rising Northeast: The Investor Summit’ in New Delhi to showcase the investment and trade potential of the Northeast Region of India.
GeM Celebrates 8th Incorporation Day
Context Government e Marketplace (GeM), India’s national public procurement portal, marked its 8th Incorporation Day. Government e-Marketplace GeM is a one stop portal to facilitate online procurement of common use Goods Services required by various Government Departments / Organizations / PSUs. It was launched in 2016, and is operated by the GeM SPV (Special Purpose Vehicle), a 100% government-owned company under the Ministry of Commerce and Industry.
Mismatch Between MGNREGS Coverage and Delivery
Context A recent report by LibTech India has raised questions about the effectiveness of Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) for the financial year 2024–25. Key Findings of the Report Increase in Coverage: The number of registered households under MGNREGS rose by 8.6%, from 13.80 crore in FY 2023–24 to 14.98 crore in FY 2024–25. Decline in Employment Days: Despite higher registration, persondays fell by 7.1%.
70 Applications Received for Scheme to Produce Electronic Components
Context The Government of India has received 70 applications, 80% from small and medium enterprises (SMEs), for its Electronics Component Manufacturing Scheme. Government initiatives Make in India, Digital India, and Startup India are promoting domestic manufacturing and technological innovation. Production Linked Incentive Scheme (PLI): The scheme aims to attract large investments in the mobile phone manufacturing and specified electronic components, including Assembly, Testing, Marking and Pac
Manufacturing Mission: Need of Right Policy Intervention
Recently, the Union government moved to establish an inter-ministerial panel for drafting a National Manufacturing Mission, aiming to strengthen Indias manufacturing sector.
India’s Major Ports Achieve Historic Milestones in FY 2024-25
Context In FY 2024-25, Major Ports registered an impressive annual growth rate of 4.3% in cargo handling, increasing from 819 million tonnes in FY 2023-24 to ~855 million tonnes in FY 2024-25. About Average Turnaround Time (TRT) improved by 48%, reducing from 96 hours in FY 2014-15 to 49.5 hours in FY 2024-25. Major Ports financial performance has been equally impressive, with total income more than doubling over the past decade, registering a 7.5% CAGR over 10 years.
Natural Farming Certification System
Context In a bid to boost consumer trust and farmer incomes, the central government is likely to introduce a nationwide Natural Farming Certification System (NFCS). Benefits of Natural Farming Lower Input Costs: Natural farming requires fewer external inputs like chemical fertilizers and pesticides, which can reduce overall production costs for farmers. Ensures Better Health: As Natural Farming does not use any synthetic chemicals, health risks and hazards are eliminated.
Strengthening Inland Water Transport in India
Context The Inland Waterways Authority of India (IWAI) has established a new regional office in Srinagar, committed ₹100 crore to improve three National Waterways in the region — River Chenab (NW-26), River Jhelum (NW-49), and River Ravi (NW-84). Inland Water Transport in India National Waterways Act, 2016 has declared 111 inland waterways as ‘National Waterways’ (NWs) in the country to promote shipping and navigation on them. The total length of NWs is 20,275 km spread across 24 States in the c
Why Farmers Prefer Growing Rice and Wheat
Context Indian farmers continue to choose rice and wheat as their primary crops despite growing discourse around crop diversification, and complex interplay of historical legacy, economic security, policy incentives, and agro-ecological conditions. Rice and Wheat Production in India (2024-25) Wheat Production: It is estimated at 122.724 million tonnes, covering 330.8 lakh hectares. Major wheat-growing states include Uttar Pradesh, Madhya Pradesh, Rajasthan, Punjab, Haryana, Bihar, Gujarat, and M
10 Years of Three Jan Suraksha Schemes
Context India is celebrating the 10th anniversary of the three social security (Jan Suraksha) schemes — Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY). Pradhan Mantri Suraksha Bima Yojana (PMSBY) Scheme: PMSBY is a one-year accidental insurance scheme renewable from year to year offering coverage for death or disability due to accident. Eligibility: Persons in the age group of 18-70 years having an individual bank or a
CCI Notifies New Definitions to Curb Predatory Pricing
In News The Competition Commission of India (CCI) has notified the “Determination of Cost of Production Regulations, 2025”, replacing its 2009 framework. Background: Predatory Pricing and Competition Law Predatory pricing is defined under the Competition Act, 2002 as the sale of goods or provision of services, at a price below the cost of production with a view to reduce competition or eliminate competitors. Such practices are deemed abuse of dominant position under Section 4 of the Act.
Revised SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) Policy for Coal Allocation
Context The Cabinet Committee on Economic Affairs (CCEA) has accorded its approval for the Revised SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) Policy for Coal Allocation to Power Sector. SHAKTI Policy It was introduced in 2017 and there was a paradigm shift of the coal allocation mechanism from a nomination-based regime to a more transparent way of allocation of coal linkages through auction / tariff-based bidding. The current revision with innovative features wil
Report on “Enhancing Competitiveness of MSMEs in India”
In News NITI Aayog released a report on improving Micro, Small, and Medium Enterprises (MSMEs) competitiveness in India. India’s MSME sector It is a key driver of Indias industrial economy, with 5.93 crore registered enterprises employing over 25 crore people. In 2023-24, MSME-related products contributed 45.73% to Indias total exports.
Strengthening Entrepreneurship Ecosystems in India
Context The Global Alliance for Mass Entrepreneurship (GAME) and NITI Aayog have announced a strategic partnership aimed at fostering vibrant entrepreneurship ecosystems across multiple states in India. About Mass Entrepreneurship It refers to the widespread creation of small and medium-sized enterprises (SMEs) that generate jobs, economic growth, and social impact. It emphasizes inclusive business creation, enabling millions of individuals to become job creators rather than job seekers, unlike
National Mission for Clean Ganga Gets Tax Exemption Status
In News The Central Board of Direct Taxes (CBDT) has granted tax exemption to the National Mission for Clean Ganga (NMCG) by notifying it as an authority under clause 46A of Section 10 of the Income Tax Act, 1961. About Section 10 of the Income Tax Act Section 10 of the Income Tax Act, 1961, lays out different types of income that can be exempt from taxes, with the goal of easing the financial load on certain entities. The Clause (46A) in this section grants tax exemptions to statutory bodies or
Guidelines For Setting Up Bio-resource Centres
In News The Ministry of Agriculture and Farmers’ Welfare has come up with the guidelines for setting up of bio-input resource centres (BRC) under the National Mission on Natural Farming (NMNF). Key Highlights of the Guidelines Financial Assistance: ₹1 lakh per BRC, provided in two installments of ₹50,000 each. Assistance excludes costs like sheds, land rental, or permanent infrastructure.
India’s Record Cargo Movement on Inland Waterways
Context India has achieved a record of over 145 million tonnes of cargo movement on inland waterways in 2024-25. About The number of National Waterways increased from 5 to 111, with the operational length growing from 2,716 km (2014–15) to 4,894 km (2023–24). Massive infrastructure development includes Multi-Modal Terminals (MMTs), Inter-Modal Terminals (IMTs), community jetties, floating terminals, and green tech like Hybrid Electric and Hydrogen Vessels.