INTEGRATED MAINS AND PRELIMS MENTORSHIP (IMPM) 2025 Daily KEY
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Goods and Services Tax (GST) and Expenditure on Childrens Education in India and its significance for the UPSC Exam? Why are topics like Free Movement regime, Particularly vulnerable tribal groups (PVTGs) , India-US relations important for both preliminary and main exams? Discover more insights in the UPSC Exam Notes for September 08, 2025 |
- On September 3, 2025, the GST Council approved a major restructuring of the indirect tax framework. The new model reduces the number of slabs and lowers GST on most goods. While these changes have been welcomed by many industries, some sectors have expressed dissatisfaction, and concerns remain over possible revenue shortfalls.
- Discussions on rationalising GST rates have been ongoing for several years. In 2021, the Council set up a Group of Ministers (GoM) composed of state representatives to examine this issue, though its progress was limited.
- To accelerate the process, the Union Finance Ministry submitted its proposals to the GoM on August 15, 2025, the same day Prime Minister Narendra Modi described these “next-generation” reforms as a Deepavali gift in his Independence Day speech.
- Following a briefing by Finance Minister Nirmala Sitharaman, the GoM endorsed the proposals and forwarded them to the Council, which took them up in a marathon 10.5-hour meeting on September 3.
- The revised tax structure reduces the earlier slabs of 0%, 5%, 12%, 18%, 28% plus cess to 0%, 5%, 18% and 40%, with most compensation cesses withdrawn. The cess continues only on tobacco products but will also be phased out once the Centre clears its COVID-19 compensation loans.
- Of the 453 items affected, 413 (over 91%) saw rate reductions, particularly shifting common-use goods from 12% to 5%. A smaller group of 40 items faced hikes, including 17 luxury products that moved from 28% to 40%, though in cases like SUVs, the effective tax incidence will actually decline when the cess is removed.
- The timing of these changes is tied to two developments. First, the legal window for levying the compensation cess will soon close, likely by the end of this year, once the Centre repays its borrowings.
- Without new rates, items such as tobacco would have become cheaper, which the government could not justify. Second, the reforms may also cushion the economic impact of recent U.S. tariffs of 50% on Indian imports, which are expected to slow growth in the coming quarters despite a strong 7.8% GDP growth in Q1.
- The healthcare sector has welcomed the cut in GST on medical products from 12% to 5%, highlighting benefits for patients. The renewable energy sector also hailed the reduction on components as a boost to India’s clean energy goals. Real estate developers have praised the lowering of GST on cement from 28% to 18%, while auto manufacturers expect stronger demand from tax cuts on cars and two-wheelers.
- On the other hand, some industries are less satisfied. The textile sector supported the 5% rate on fibres but criticised the 18% duty on garments above ₹2,500, warning it will make woollens and wedding apparel costlier.
- Auto dealers fear customers may delay purchases until the new rates take effect. The insurance sector faces a mixed outcome—while exemptions for personal life and health insurance may deepen penetration, the removal of input tax credits could squeeze profits.
- Airlines opposed the higher tax on non-economy seats, while edible oil producers expressed frustration that the inverted duty structure was not resolved. The MSME sector raised concerns about higher GST on labour charges from 12% to 18%, citing increased operating costs.
- The revenue effects remain contested. The Centre projects a hit of ₹48,000 crore based on current consumption, while an SBI study places the figure closer to ₹3,700 crore. Opposition-ruled states have demanded a cess on the new 40% slab to offset losses, but this proposal was rejected, leaving states dependent on their own resources and the recommendations of the 16th Finance Commission
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Answer (D)
A. It is a destination tax ✅ B. It benefits producing states more ⌠C. It benefits consuming states more ✅ D. It is a progressive taxation ⌠E. It is an umbrella tax to improve ease of doing business ✅ |
- The latest findings from the Comprehensive Modular Survey on Education, conducted during April–June under the 80th round of the National Sample Survey (NSS), reveal a consistent gender disparity in educational spending.
- Across all stages of schooling—from pre-primary to higher secondary—and across both rural and urban areas, households spend less per girl student compared to boys. The survey covered 52,085 households in 2,384 villages and 1,982 urban blocks, collecting education-related details for 57,742 currently enrolled students.
- In rural regions, families spent on average ₹1,373 (18%) more on boys, factoring in course fees, books, stationery, uniforms, and transportation. In urban areas, the gap was even starker, with ₹2,791 less being spent on each girl than on boys.
- By the higher secondary stage in cities, families spend nearly 30% more on boys’ education. When tuition fees alone are considered, the disparity is sharper: nationwide, households pay 21.5% higher course fees for boys than for girls.
- This bias is also reflected in school choices. Around 58.4% of girls attend government schools, where course fees are minimal, while only 29.5% are in private schools. By contrast, 34% of boys are enrolled in costlier private unaided schools.
- The divide extends beyond classrooms into private tuitions, now widely seen as essential for quality education. Although 26% of girls and 27.8% of boys take tuition classes, spending patterns show inequity: by higher secondary level, families invest on average 22% more in tuition fees for boys than for girls
- The gender gap in education differs considerably across Indian States. Looking at enrolments in government versus private schools, the widest disparities appear in places like Delhi, where about 65% of girls attend government schools compared to 54% of boys.
- In contrast, nearly 38.8% of boys study in private institutions, while only 26.6% of girls do so. States such as Madhya Pradesh, Rajasthan, and Punjab also record gaps exceeding 10 percentage points.
- In Gujarat, the imbalance is pronounced in urban centres but relatively narrow in rural regions. By comparison, Tamil Nadu and Kerala display near parity between boys and girls in both government and private school enrolment, whereas some northeastern States actually show higher private school attendance among girls than boys.
- Spending patterns further complicate this picture, especially at the higher secondary level. In States like Telangana, Tamil Nadu, and West Bengal, households invest far more in boys than in girls, even though at the secondary stage spending on girls was higher.
- For example, in Tamil Nadu, families spent an average of ₹23,796 on a girl student in secondary school compared to ₹22,593 on a boy. But at the higher secondary stage, the average expenditure on boys rises to ₹35,973, while it drops to just ₹19,412 for girls.
- This shift partly reflects higher dropout rates among girls at that stage, though government subsidies for girls may also explain some of the gap.
- In Andhra Pradesh, Himachal Pradesh, and Kerala, however, higher secondary expenditure on girls surpasses that of boys, particularly in urban areas where transport costs—linked to ensuring girls’ safety—constitute a major share.
- Differences are also stark in private coaching expenditure at higher secondary level. In Himachal Pradesh, families spent an average of ₹9,813 per boy enrolled in tuition compared to only ₹1,550 per girl. States such as Bihar, Jharkhand, Rajasthan, and Tamil Nadu also recorded significant gender-based disparities in tuition spending
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Answer (B)
Statement 1: Construction sector gave employment to nearly one-tenth of the urban male workforce in India. Statement 2: Nearly one-fourth of urban female workers in India were working in the manufacturing sector. Statement 3: One-fourth of rural female workers in India were engaged in the agriculture sector. 👉 So, only Statement 1 is correct. Correct Answer: A. 2 only ⌠Looking back at the official PLFS 2017-18 data:
So actually: Statements 1 and 2 are correct; Statement 3 is wrong |
- The boundary between India and Myanmar was originally drawn by the British in 1826 without consulting the local population. This division split communities of the same ethnic and cultural background into two different countries, and the present-day border still follows that colonial demarcation.
- The people living along this border maintain close ethnic, cultural, and family ties. In Manipur’s Moreh, some villages have houses that physically straddle the border, while in Nagaland’s Longwa village, the dividing line even cuts through the residence of the village chief.
- The Free Movement Regime (FMR) was introduced not only to facilitate cross-border interaction but also to boost small-scale trade. For a region historically dependent on local markets and cross-border exchanges, such trade remains crucial for survival in a low-income economy.
- However, the United Naga Council (UNC) recently announced a “trade embargo” from September 8 in protest against the India-Myanmar border fencing project and the suspension of the FMR.
- The FMR, which permitted movement up to 16 km across the border without visas, has become a contentious issue among various ethnic groups. Both the Nagas and Kukis oppose its cancellation and the construction of fencing, with some Kukis even comparing the barrier to the Berlin Wall.
- In contrast, the Meitei community in the Valley claims that the open border and FMR have encouraged illegal immigration and drug trafficking, aggravating the ethnic tensions that have plagued Manipur over the past two years.
- In response, the central government has signed a fresh Suspension of Operations (SoO) agreement with Kuki armed groups. Under this pact, the groups agreed to move their camps away from Meitei-dominated areas and affirm Manipur’s territorial integrity.
- If the Kukis allow freer movement across their areas, the government is expected to pressurize the Meiteis to reciprocate, which could mark a step toward restoring normalcy in a state torn by ethnic violence since May 2023.
- At present, “buffer zones” guarded by security forces separate Kuki-Zo dominated areas from Meitei regions to prevent clashes. The latest SoO deal, signed in New Delhi after a tripartite meeting involving the Ministry of Home Affairs (MHA), the Manipur government, and Kuki organisations (KNO and UPF), is valid for one year under revised terms.
- According to the MHA, the new terms require respecting Manipur’s territorial integrity, relocating seven Kuki camps from conflict-prone areas, reducing the number of camps overall, depositing weapons with security forces, and verifying cadres to identify and exclude foreign nationals.
- Currently, Manipur has 14 SoO camps. While many are located deep in the hills, some are near the Valley, leading to accusations from Meitei groups that they have been staging attacks from these bases — a claim that Kuki organisations deny
1.Consider the following pairs: (UPSC 2018)
| Tradition | State | |
| 1. | Chapchar Kut festival | Mizoram |
| 2. | Khongjom Parba ballad | Manipur |
| 3. | Thang-Ta dance | Sikkim |
Which of the pairs given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 3 only
(d) 2 and 3 only
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Answer (b)
Correct Answer: (b) 1 and 2 only ✅ |
- The Pradhan Mantri Janjati Adivasi Nyay Maha Abhiyan (PM JANMAN) was inaugurated by the Prime Minister on Janjatiya Gaurav Divas (15 November 2023) at Khunti, Jharkhand.
- It seeks to benefit 75 Particularly Vulnerable Tribal Groups (PVTGs) by ensuring access to essential amenities such as secure housing, safe drinking water, sanitation, better health and nutrition services, quality education, road and telecom connectivity, and livelihood opportunities.
- The Registrar General and Census Commissioner of India (RGI), under the Ministry of Home Affairs, is responsible for conducting the decennial Census. The Ministry of Tribal Affairs (MoTA) has written to the RGI, requesting the inclusion of data on PVTG households and individuals, along with their demographic, cultural, and socio-economic characteristics.
- According to the ministry, such information would significantly improve the targeted implementation of schemes like PM JANMAN.
- PVTGs, a distinct subgroup within Scheduled Tribes (STs), are characterized by stagnant or declining population, isolation, dependence on pre-agrarian practices (such as hunting and gathering), low literacy levels, and economic backwardness.
- The category was created on the basis of the Dhebar Commission (1960–61), chaired by U.N. Dhebar, which had highlighted disparities in the conditions of various tribal groups and identified certain communities as more vulnerable.
- Initially, during the Fifth Five-Year Plan (1974–79), 52 tribal groups were recognized as PVTGs (then referred to as Primitive Tribal Groups). In 2006, another 23 groups were added, bringing the total to 75 communities spread across 18 states and the Andaman & Nicobar Islands.
- Of these, 40 groups have been classified as “single entry,” meaning they are explicitly listed as Scheduled Tribes under Article 342 of the Constitution.
- In November 2023, the government announced the ₹24,104 crore PM JANMAN scheme to improve the living standards of PVTGs in more than 200 districts. To support its rollout, MoTA and state governments carried out a habitation-level survey to assess PVTG populations and infrastructure deficiencies.
- The survey estimated the PVTG population at 47.5 lakh nationwide. Madhya Pradesh recorded the largest share with 13.22 lakh, followed by Maharashtra (6.7 lakh) and Andhra Pradesh (5.18 lakh).
- Officials emphasized that accurate demographic data would address critical gaps in the delivery of welfare schemes—especially in health and education—and help evaluate whether the criteria used for classifying PVTGs remain appropriate
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Answer (C)
Correct Answer: C. 1, 2 and 4 ✅ |
- The United States is India’s top trading partner, with bilateral trade in FY24 touching nearly $120 billion, marginally above India’s trade volume with China. Unlike the trade imbalance with China, India enjoys a favourable trade equation with the US, making it an important source of foreign exchange.
- Reflecting the frequent policy swings in Washington, former US President Donald Trump stated at the Oval Office on Friday that India and the US share a “special relationship” and that there was “nothing to worry about.” Hours later, Prime Minister Narendra Modi responded by saying he “deeply” valued and fully endorsed Trump’s sentiments and positive assessment of bilateral ties.
- This marked Modi’s first direct remark since Trump announced his global tariff plan, which had earlier imposed a 25% duty on Indian goods in April, followed by another 25% in response to India’s purchase of Russian oil.
- Trump’s latest executive order on tariff exemptions extends relief to just $15 million worth of Indian exports, according to an analysis by the Global Trade Research Initiative (GTRI).
- The Friday order expanded the exemption list by adding 44 new items, covering industrial goods such as nickel, gold, other metals, pharmaceutical ingredients, and chemicals.
- However, these newly exempted products accounted for only $15.2 million of India’s 2024 exports to the US, a negligible portion of the overall trade, said GTRI co-founder Ajay Srivastava.
- With these inclusions, the total value of India’s tariff-exempt exports now stands at $28.4 billion, which is 31.3% of India’s $91.2 billion total exports to the US in 2024, GTRI noted.
- The organisation underlined that while Washington continues to use tariffs as an instrument of trade and security policy, the latest changes carry limited commercial impact for India due to the small scale of the newly exempted shipments
- The story of India–US relations has been one of constant change—sometimes warm, sometimes strained, but always significant. When India gained independence in 1947, the United States was among the first nations to recognize it.
- However, the relationship in the early years was cautious rather than close. India, under Prime Minister Jawaharlal Nehru, adopted a policy of non-alignment during the Cold War, trying to steer clear of both the US-led Western bloc and the Soviet bloc.
- The US, meanwhile, was keen on building strong alliances in Asia to contain communism, which often led to friction with India’s independent stance.
- The 1950s and 1960s saw moments of both cooperation and distrust. While the US did extend food aid through the PL-480 program and offered developmental assistance, it grew uneasy about India’s growing closeness to the Soviet Union.
- Tensions heightened after the 1962 Sino-Indian war, when the US briefly supported India against China, but relations soured again as Washington developed stronger ties with Pakistan, a key US ally in the Cold War.
- The 1970s marked a particularly low point. India’s 1971 war with Pakistan, which led to the creation of Bangladesh, strained ties severely because the US sided with Pakistan, even sending the Seventh Fleet into the Bay of Bengal as a show of force.
- In 1974, India’s first nuclear test at Pokhran further deepened the rift, as Washington responded with technology sanctions.
- The Cold War alignment between the US and Pakistan on one side, and India’s growing closeness to the USSR on the other, kept relations cool for much of this period.
- With the end of the Cold War in the early 1990s, the dynamics began to shift. India’s economic liberalization in 1991 opened new avenues for trade and investment, and the US started to see India as a promising market and a potential partner in Asia.
- However, relations were jolted again in 1998 when India conducted a series of nuclear tests, prompting US sanctions.
- Yet, this also created an opportunity for dialogue: by the early 2000s, both countries had begun to recognize their shared strategic interests.
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A turning point came during the presidency of George W. Bush and the leadership of Prime Minister Manmohan Singh, when the India–US Civil Nuclear Agreement (2005–08) was signed.
- This landmark deal ended decades of nuclear isolation for India and symbolized a new era of trust and cooperation. Around the same time, defense ties began to grow, and the US gradually emerged as one of India’s biggest suppliers of defense equipment.
- In the 2010s, relations expanded beyond defense and nuclear energy. Economic and technological cooperation grew, people-to-people ties flourished thanks to the large Indian diaspora in the US, and both nations found common ground in areas like counter-terrorism, climate change, and maritime security.
- The US began to openly endorse India’s role as a rising global power, supporting its aspiration for a greater say in institutions like the UN Security Council.
- More recently, under leaders like Narendra Modi, Barack Obama, Donald Trump, and Joe Biden, the partnership has taken on an even broader scope. Strategic frameworks such as the Quad grouping (India, US, Japan, Australia) highlight their shared interest in maintaining a free and open Indo-Pacific in the face of China’s rise.
- Economic ties have deepened, with the US becoming India’s largest trading partner. At the same time, differences remain over issues such as tariffs, visas, and India’s ties with Russia, but these disputes have not derailed the overall upward trajectory