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Revolt 1857 and IMF Bailout and its significance for the UPSC Exam? Why are topics like BrahMos missile, Carbon Credit Trading Scheme (CCTS), Joint Military Exercise important for both preliminary and main exams? Discover more insights in the UPSC Exam Notes for May 10, 2025 |
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Critical Topics and Their Significance for the UPSC CSE Examination on May 10, 2025
Daily Insights and Initiatives for UPSC Exam Notes: Comprehensive explanations and high-quality material provided regularly for students
For Preliminary Examination: Current events of national and international Significance
For Mains Examination: GS II - International Organisations
Context:
A day before the International Monetary Fund (IMF) is set to review the financing facilities extended to Pakistan, India’s Foreign Secretary Vikram Misri on Thursday said the Fund’s Board should look “deep within” and take into account the facts before generously bailing out the country
Read about:
What is IMF bailout?.
Instances of IMF bailout
Key takeaways:
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The International Monetary Fund (IMF) supports countries facing economic crises by offering financial assistance. This support helps nations implement necessary policy adjustments to restore stability and foster growth. In addition, the IMF offers precautionary funding to guard against potential crises. The institution continually updates its lending instruments to better suit the evolving needs of member countries.
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In contrast to development banks, the IMF does not finance individual development projects. Its focus is on aiding countries in crisis by providing temporary financial relief while they enact economic reforms. The IMF also extends precautionary lines of credit to prevent potential financial turmoil. Its range of lending programs is regularly adapted to stay aligned with changing global economic conditions.
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Economic crises can arise from a complex mix of domestic and international factors. Internally, poor fiscal and monetary decisions can lead to unsustainable deficits and mounting public debt. An inflexible or misaligned exchange rate can reduce a country’s competitiveness and drain its foreign reserves. Weak financial institutions may also contribute to economic volatility. Political instability and fragile governance systems are further domestic contributors. On the external front, countries—especially low-income ones—may be affected by events such as natural disasters or dramatic changes in commodity prices. In a globalized economy, abrupt shifts in investor sentiment can also cause volatile capital flows, impacting even well-managed economies.
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Since joining the IMF in 1950, Pakistan has entered into 25 agreements with the institution. As of March 31, 2025, the IMF’s outstanding loans to Pakistan amounted to 6.23 billion Special Drawing Rights (SDRs).
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Currently, Pakistan is receiving financial support from a $7 billion IMF aid package approved in September 2024. This package is structured under a 37-month Extended Fund Facility, which includes six performance reviews. The disbursement of the next installment, approximately $1 billion, is dependent on the successful completion of the upcoming review.
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Parameswaran Iyer, who serves as the Executive Director at the World Bank, has been temporarily assigned as India’s representative on the IMF Board. He will attend the significant Board meeting scheduled for May 9. This appointment follows the early termination of Krishnamurthy V. Subramanian’s term as India’s Executive Director at the IMF, which ended six months prior to its original conclusion.
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Amid escalating tensions with Pakistan, the Indian government plans to engage with various multilateral development banks to discourage further lending and financial assistance to Pakistan, according to a senior official
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Answer (B)
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For Preliminary Examination: Current events of national and international Significance
For Mains Examination: General Studies III: Role of external state and non-state actors in creating challenges to internal security
Context:
Built as a joint venture between the Defence Research and Development Organisation (DRDO) and Russia’s NPO Mashinostroyeniya, the BrahMos supersonic cruise missiles form a crucial part of India’s arsenal, with Uttar Pradesh set to be the centre of its production
Read about:
BrahMos missile
BrahMos missile is classified as which type of missile?
Key takeaways:
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The BrahMos missile derives its name from a blend of two rivers — Brahmaputra in India and Moskva in Russia. It is developed by BrahMos Aerospace, a collaborative venture between India's DRDO (Defence Research and Development Organisation) and Russia’s NPO Mashinostroyenia.
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Several variants of the BrahMos missile have been successfully developed and tested, including those launched from land platforms, naval ships, submarines, and Su-30MKI fighter aircraft. The Indian Navy and Army have been operating the earliest naval and ground-based BrahMos systems since 2005 and 2007, respectively.
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BrahMos is a two-stage missile system, featuring a solid-fuel booster in the first stage and a liquid-fuel ramjet engine in the second. Classified as a standoff weapon, it is designed to strike from a distance, allowing launch platforms to remain out of enemy range. Most modern militaries maintain such capabilities. While the initial versions had a range of 290 km, newer versions under testing can strike targets up to 400 km away, with longer-range models currently in development.
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The land-based BrahMos system comprises mobile autonomous launchers, typically housing three missiles each, capable of launching in rapid succession. These systems are strategically positioned along India’s borders.
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The land-attack version of the BrahMos travels at speeds of up to Mach 2.8. With recent enhancements, it can now deliver precision strikes over a 400 km range. Development of longer-range versions continues.
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On May 11, Defence Minister Rajnath Singh is scheduled to inaugurate a BrahMos manufacturing facility in Lucknow, which aims to produce 80–100 missiles annually. The plant is a key project under the Defence Industrial Corridor, first announced by Prime Minister Narendra Modi in 2018 during an international investment summit.
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A senior official from the Uttar Pradesh Expressways Industrial Development Authority (UPIEDA) stated that the Rs 300-crore BrahMos facility would significantly contribute to the defence ecosystem in the state. So far, around 1,600 hectares have been allocated for the defence corridor's initial phase, and several major companies have signed MOUs. Negotiations are also ongoing with BHEL to establish a unit in the region.
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The defence corridor in Uttar Pradesh, announced by PM Modi in 2018, spans six major nodes: Lucknow, Kanpur, Aligarh, Agra, Jhansi, and Chitrakoot.
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According to government sources, the second phase of land allocation is being planned, starting with Aligarh. Land in Lucknow, Kanpur, and Aligarh has already been distributed, while Jhansi, one of the largest nodes with 1,000 hectares, is nearing full allocation.
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Overall, about 60% of the required land has been allocated. Meanwhile, Chief Secretary Manoj Kumar Singh and other senior officials are currently in Athens, Greece, seeking international investments in the defence manufacturing sector
1.Consider the following statements: (UPSC CSE Prelims 2023)
- Ballistic missiles are jet-propelled at subsonic speeds throughout their flights, while cruise missiles are rocket-powered only in the initial phase of flight.
- Agni-V is a medium-range supersonic cruise missile, while BrahMos is a solid-fuelled intercontinental ballistic missile.
Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
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Answer (D)
Statement 1: "Ballistic missiles are jet-propelled at subsonic speeds throughout their flights, while cruise missiles are rocket-powered only in the initial phase of flight."Incorrect.
Statement 2: "Agni-V is a medium-range supersonic cruise missile, while BrahMos is a solid-fuelled intercontinental ballistic missile."Incorrect.
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Carbon Border Adjustment Mechanism (CBAM)
For Preliminary Examination: Current events of national and international Significance
For Mains Examination: GS III - Environment & Ecology
Context:
India reserves the right to retaliate against the UK if it introduces a carbon tax as United Kingdom may have not agreed to India’s request for a country-specific concession or a carve-out for Indian micro, small, and medium enterprises (MSMEs) under the trade deal announced earlier this week
Read about:
Carbon Credit Trading Scheme (CCTS)
What are the benefits of India UK free trade agreement?
Key takeaways:
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The European Union was the first to introduce a carbon tax, a move that has faced considerable pushback from India. The EU’s Carbon Border Adjustment Mechanism (CBAM) is scheduled to become fully operational in January 2026, with a transition phase already in place since October 1, 2023, during which exporters must submit emissions-related data to EU regulators. This development is particularly critical for India, as over 15% of its total exports are directed to the EU, amounting to $75 billion in 2022–23.
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Several major economies such as China, Russia, Brazil, and South Africa have already challenged the CBAM at the World Trade Organization (WTO). While India has not yet filed a formal complaint, it is simultaneously working toward a free trade agreement (FTA) with the EU, and similarly negotiating with the United Kingdom to resolve related issues.
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The total value of UK–India trade reached £42.6 billion in 2024, making India the 11th largest trade partner of the UK.
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Talks have included concerns over potential UK implementation of a CBAM starting January 1, 2027, which could undermine agreed tariff reductions on certain goods. In response, discussions around possible retaliatory measures by India have emerged.
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According to officials, India and the UK have agreed that if Britain goes ahead with its CBAM, India reserves the right to impose countermeasures. If India applies a domestic carbon tax on the same products, this could negate the need for Indian exporters to pay the tax in the UK. The funds collected through such a domestic tax could then support India’s sustainability programs.
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Earlier this month, it was reported by The Indian Express that the UK has not shown readiness to offer exemptions under its proposed CBAM, which remains a major point of contention. India had initially requested an exemption for Micro, Small, and Medium Enterprises (MSMEs), and later proposed a “rebalancing mechanism”, under which the UK would financially compensate Indian industries affected by the regulation
- The Carbon Border Adjustment Mechanism (CBAM) is a trade policy tool introduced by the European Union to address carbon leakage and promote cleaner industrial production globally.
- Carbon leakage occurs when companies transfer production to countries with less stringent climate regulations to reduce costs, thereby undermining global emissions reduction efforts. CBAM seeks to level the playing field by ensuring that imported goods are subject to the same carbon costs as those produced within the EU.
- Set to be fully implemented by January 2026, with a transitional reporting phase that began on October 1, 2023, CBAM will initially apply to carbon-intensive sectors such as steel, aluminum, cement, fertilizers, electricity, and hydrogen.
- During the transition phase, exporters are required to report emissions embedded in their products, though they are not yet obligated to pay any tax.
- Once the system is fully in place, companies importing goods into the EU will need to purchase CBAM certificates equivalent to the carbon price that EU producers pay under the EU Emissions Trading System (ETS).
- The objective of CBAM is not only environmental but also economic. It is intended to prevent unfair competition from countries with laxer environmental regulations, while simultaneously encouraging other nations to adopt similar carbon pricing mechanisms.
- This has led to diplomatic tensions, especially with large exporting countries like India, China, Brazil, Russia, and South Africa, which argue that CBAM could function as a trade barrier and potentially violate World Trade Organization (WTO) rules.
- India, while yet to challenge CBAM formally at the WTO, has voiced strong concerns. Since a significant portion of India’s exports go to the EU—over 15% in 2022–23—it fears that CBAM will increase the cost of Indian goods and affect their competitiveness in the European market.
- India is currently negotiating trade agreements with both the EU and the UK, and the issue of carbon tariffs remains a significant point of contention. There are ongoing discussions about whether India might impose a domestic carbon tax to neutralize the impact of CBAM and retain the tax revenue for its own sustainability programs.
- In essence, CBAM represents a significant shift in how climate and trade policies are intertwined, with potentially wide-ranging implications for global trade dynamics, particularly for developing countries that are major exporters of carbon-intensive goods
Follow Up Question
1.Which of the following adopted a law on data protection and privacy for its citizens known as ‘General Data Protection Regulation’ in April, 2016 and started implementation of it from 25th May, 2018? (UPSC CSE 2019)
(a) Australia
(b) Canada
(c) The European Union
(d) The United States of America
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Answer (c)
The General Data Protection Regulation (GDPR) was adopted by the European Union in April 2016 and came into effect on May 25, 2018. It is a comprehensive data protection law that aims to give EU citizens greater control over their personal data and to standardize data privacy laws across Europe
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Major defence agreements by India
For Prelims Examination: Current events of national and international Significance
For Mains Examination: GS III - Defence Acquisition
Context:
The “Pahalgam attack was the first escalation,” the government said during a special briefing on Operation Sindoor on Thursday. Responding to the Pakistani attack on Indian military installations, India also attacked their military targets, even taking out an air defence system in Lahore, using its latest loitering munitions such as the Israeli HAROPs and the HARPYs. These can “loiter” or hover in the air close to the designated target before self-destructing on impact
Read about:
Joint Military Exercise
Inter-Governmental Agreement (IGA)
Key takeaways:
India has not officially disclosed the specific weapons used during Operation Sindoor, conducted in the early hours of May 7. The Indian Armed Forces, however, confirmed that precision strikes were executed against terrorist infrastructure located deep within Pakistan and Pakistan-occupied Kashmir (PoK). While the details of the armaments remain classified, India possesses several advanced long-range precision-guided weapons and drones that are likely candidates for such operations. These include:
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HAMMER (Highly Agile and Manoeuvrable Munition Extended Range): Designed for the Rafale jets, HAMMER is an air-to-ground precision weapon capable of striking targets up to 70 km away. It is adaptable and can be integrated with different bomb configurations and guided munitions.
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SCALP (Système de Croisière Autonome à Longue Portée – Emploi Général): Known as Storm Shadow in the UK, SCALP is a stealthy, air-launched cruise missile optimized for deep-penetration strikes. It functions effectively under all weather conditions and at night, making it a formidable tool for long-range precision targeting.
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BRAHMOS: This supersonic cruise missile is jointly developed by India’s DRDO and Russia’s NPO Mashinostroyeniya under the BrahMos Aerospace partnership. Capable of being launched from land, sea, and air platforms, BrahMos follows the "fire-and-forget" model and can maneuver along various flight trajectories to accurately strike its target.
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METEOR: The Meteor is an advanced Beyond Visual Range Air-to-Air Missile (BVRAAM) equipped to handle high-threat environments, including those with dense electronic warfare activity. It enhances an aircraft’s capability to neutralize aerial threats from a significant distance.
Joint Military Exercises between India and Other Nations
India actively participates in a wide range of joint military exercises across the three branches of its armed forces—Army, Navy, and Air Force—to strengthen defence cooperation, enhance interoperability, and share strategic and tactical knowledge with partner countries.
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With the United Kingdom:
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Exercise Ajeya Warrior involves the Indian Army and the British Army, focusing on counter-insurgency and counter-terrorism operations in semi-urban environments.
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Exercise Konkan is a bilateral naval exercise between the Indian Navy and the Royal Navy, designed to boost maritime collaboration and operational synergy.
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Exercise Indradhanush-IV is an Air Force-level drill, where the Indian Air Force and the Royal Air Force engage in joint air combat maneuvers, including aerial refueling and close-combat simulations.
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With Thailand:
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Exercise Maitree is a joint Army exercise conducted between the Indian Army and the Royal Thai Army, focusing on counter-terrorism and jungle warfare.
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The India–Thailand Coordinated Patrol (Indo-Thai CORPAT) is a naval exercise aimed at enhancing maritime security through coordinated patrols in the Andaman Sea.
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With the United States:
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Exercise Yudh Abhyas is a bilateral Army exercise focusing on joint military operations in counter-insurgency and humanitarian assistance scenarios.
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Exercise Vajra Prahar is a special forces training program between the Indian and U.S. Armies to enhance joint tactical cooperation.
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Exercise Malabar is a high-end naval exercise involving India, the U.S., and other Indo-Pacific allies, focusing on naval interoperability, anti-submarine warfare, and maritime security.
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Red Flag 16-1 is a prestigious multinational air combat exercise hosted by the United States Air Force, in which the Indian Air Force has participated to enhance aerial combat readiness and coordination with allied forces.
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With Indonesia:
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Exercise Garuda Shakti is an Army-level joint drill with the Indonesian Army, aimed at improving tactical-level operations in counter-insurgency environments.
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Exercise Samudra Shakti is a naval exercise with the Indonesian Navy, designed to improve interoperability in maritime security operations and joint navigation tactics.
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1.Consider the following pairs:
| Exercise | Countries |
| 1. Ex Shakti | India-UK |
| 2. Ex Maitree | India-Bangladesh |
| 3. Ex Vajra Prahar | India-France |
| 4. Ex Garuda Shakti | India-indonesia |
How many pairs given above are correctly matched?
(a) Only one pair
(b) Only two pairs
(c) Only three pairs
(d) All four pairs
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Answer (a)
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Why is the Revolt of 1857 important for UPSC?
For Preliminary Examination: Modern Indian History
For Mains Examination: GS I: Modern Indian History
Context:
The rebellion of 1857, also known as India’s first war of Independence, began on May 10, 1857. In the revolt, Indian sepoys rose up against the might of the British officers of the East India Company
Read about:
Queen’s Proclamation of 1858
Government of India Act 1858
Key takeaways:
- The uprising of 1857, often referred to as India’s First War of Independence, erupted on May 10 of that year. This insurrection saw Indian soldiers, known as sepoys, rising in rebellion against British officers of the East India Company. The conflict was marked by intense violence on both sides.
- Ultimately, it led to the dissolution of the East India Company’s rule in India. Following this, the British Crown assumed direct control over the Indian territories, formalized through the Queen’s Proclamation of 1858.
- One of the immediate triggers of the rebellion was a widespread belief among sepoys that the newly issued Enfield rifle cartridges were greased with cow and pig fat—offensive to Hindu and Muslim religious sentiments, respectively. These cartridges had to be bitten open before use, leading to widespread outrage.
- On March 29, 1857, a sepoy named Mangal Pandey shot at a British officer, and his fellow soldiers refused to apprehend him. This act of defiance led to his arrest, trial, and eventual execution.
- Subsequent acts of insubordination and arson were reported from several military cantonments, including those in Ambala, Lucknow, and Meerut. The mutiny formally began in Meerut on May 10.
- Historian Sekhar Bandopadhyay, in his book From Plassey to Partition, notes that the rebellion primarily affected the Bengal army. In contrast, the Madras and Bombay armies remained largely uninvolved, while Punjabi and Gurkha troops assisted in suppressing the uprising. Southern India saw minimal involvement.
- Apart from religious and military grievances, deep economic discontent fueled the rebellion. This included rising rents, exploitation of peasants, suppression of traditional crafts, and interference in native governance.
- The annexation of Awadh by Lord Dalhousie under the pretense of misgovernance particularly angered sepoys from that region, many of whom served in the Bengal Army.
- The revolt saw leadership emerge from various northern regions. In Kanpur, Nana Sahib, the adopted heir of Peshwa Baji Rao II, led the resistance.
- Begum Hazrat Mahal took command in Lucknow, Veer Kunwar Singh mobilized forces in Bihar’s Bhojpur area, Khan Bahadur Khan led in Rohilkhand, and Rani Lakshmibai became the iconic leader in Jhansi.
- Following the rebellion’s onset in Meerut, the insurgents marched to Delhi, where they declared the Mughal emperor, Bahadur Shah Zafar, as the sovereign of India. However, he was soon captured by the British, tried for treason, and exiled to Rangoon. Many members of the royal family were either killed while fleeing or perished in destitution
- The Government of India Act of 1858 marked a major shift in colonial governance following the Revolt of 1857, often termed the First War of Independence. Through this Act, the control of India was transferred from the East India Company to the British Crown.
- The position of the Governor-General was elevated and renamed as the Viceroy, who now acted as the direct representative of the British monarch in India.
- The Act also included assurances to India’s princely states, affirming that their sovereignty, dignity, and traditional privileges would be preserved. It pledged religious tolerance and committed to administering India in alignment with its social and cultural customs.
- In Britain, the Act established a new administrative structure with the creation of the India Office, overseen by the Secretary of State for India. A Council of India was also formed to advise the Secretary of State. This restructuring ensured that Indian governance was now subject to direct oversight by the British Parliament
1.What was/were the object/objects of Queen Victoria’s Proclamation (1858)? (UPSC CSE 2014)
1. To disclaim any intention to annex Indian states.
2. To place the Indian administration under the British Crown.
3. To regulate East India Company’s trade with India.
Select the correct answer using the codes given below.
(a) 1 and 2
(b) Only 2
(c) 1 and 3
(d) All of the above
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Answer (a)
Queen Victoria’s Proclamation of 1858 was issued after the Revolt of 1857, when the control of India was transferred from the East India Company to the British Crown. The proclamation had several key objectives:
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For Preliminary Examination: Current events of national and international Significance.
For Mains Examination: GS III: Awareness in the fields of IT, Space, Computers, robotics, nanotechnology
Context:
The first uncrewed mission of the Gaganyaan programme would be launched in the last quarter of this year, chairman of the India Space Research Organisation (Isro) V Narayanan
Read about:
Gaganyaan Mission
What makes this Mission very Unique?
Key takeaways:
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The Axiom-4 space mission, operated by a U.S.-based private firm, is set to carry Indian astronaut Subhranshu Shukla along with three other international crew members to the International Space Station (ISS). According to ISRO Chairman V. Narayanan, this mission will conduct a series of scientific experiments that will contribute valuable insights to India’s Gaganyaan programme, scheduled for launch around 2027.
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Axiom Space, in collaboration with NASA and SpaceX, is overseeing the mission. Shukla will serve as the pilot of SpaceX’s Crew Dragon spacecraft. The other crew members include astronauts from the United States, Poland, and Hungary. This mission marks a return to space for these three countries — India, Poland, and Hungary — after more than four decades.
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The agreement enabling an Indian astronaut’s participation in the mission stems from a bilateral arrangement between ISRO and NASA. This collaboration is a strategic step in advancing India’s human spaceflight ambitions.
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The mission will be led by Peggy Whitson, a veteran astronaut and the current director of human spaceflight at Axiom Space. She will be joined by Sławosz Uznański of Poland and Tibor Kapu of Hungary, in addition to Shukla.
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Gaganyaan, India’s maiden crewed space mission, will include three uncrewed test flights before astronauts are finally sent into low Earth orbit at an altitude of 400 km for a duration ranging from one to three days.
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Narayanan confirmed that the Axiom-4 mission is scheduled for launch in early June, and the data and experience obtained from it will directly contribute to refining the systems and protocols for Gaganyaan’s manned flight
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Answer (A)
"PSLVs launch satellites useful for Earth resources monitoring whereas GSLVs are designed mainly to launch communication satellites."
"Satellites launched by PSLV appear to remain permanently fixed in the same position in the sky, as viewed from a particular location on Earth."
"GSLV Mk III is a four-stage launch vehicle with the first and third stages using solid rocket motors; and the second and fourth stages using liquid rocket engines."
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| Subject | Topic | Description |
| Polity | Municipalities | Municipalities |
| Polity | Emergency Provisions | Emergency Provisions |
| History | Medieval History | Harshavardhan |
| Environment | Protected Area | Protected Area |
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