INTEGRATED MAINS AND PRELIMS MENTORSHIP (IMPM) 2025 Daily KEY
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European Free Trade Association (EFTA) and India’s carbon emission its significance for the UPSC Exam? Why are topics like Representation of the People Act, 1950 (RP Act) , Environment Impact Assesment (EIA), Stubble Burning, FDI and FPI important for both preliminary and main exams? Discover more insights in the UPSC Exam Notes for October 10, 2025 |
- The European Free Trade Association (EFTA) is an intergovernmental organization established in 1960 as an alternative to the European Economic Community (EEC), which later became the European Union (EU). Its main purpose is to promote free trade and economic integration among its member countries without requiring them to join the EU.
- The founding idea behind EFTA was to provide a platform for countries that wanted to enjoy the benefits of trade liberalization in Europe but did not wish to participate in the deeper political and economic union envisioned by the EEC.
- While many of its original members later joined the EU, the current EFTA membership includes Iceland, Liechtenstein, Norway, and Switzerland.
- EFTA works to remove tariffs and trade barriers among its members and to negotiate free trade agreements (FTAs) with other countries and regional blocs around the world. This allows its members to access global markets on favorable terms while maintaining their own national trade policies.
- Notably, three of the four EFTA members — Iceland, Liechtenstein, and Norway — are also part of the European Economic Area (EEA), which gives them access to the EU’s single market while remaining outside the EU’s customs union and political institutions. Switzerland, on the other hand, has chosen to maintain a separate set of bilateral agreements with the EU to regulate its trade and cooperation.
- In essence, EFTA represents a model of economic cooperation based on sovereignty and flexibility, enabling small but advanced economies to participate in global trade networks without full EU membership. It plays a significant role in promoting open markets, economic stability, and cooperation among European and global trading partners
- India achieved independence during the turbulent period of the Cold War, when two competing economic systems — capitalism and socialism — were shaping global politics. Emerging from years of colonial exploitation, India deliberately chose to remain non-aligned, avoiding formal association with either bloc.
- Instead, the country pursued a balanced and pragmatic economic approach, blending features of both capitalist and socialist models to suit its distinctive developmental needs.
- After years of limited engagement, India has renewed its focus on Europe, at a time when the continent itself is beginning to redefine its global role — moving away from being merely an extension of the United States within the broader “collective West.”
- Since the Second World War, the notion of “the West” has implied a political and strategic unity dominated by American power, with Europe and Japan largely deferring to Washington.
- The collapse of the Soviet Union further reinforced this unity, briefly bringing Russia into Western institutions such as the G7 and giving rise to the 1990s belief in the “end of history” and the triumph of liberal democracy.
- However, this unipolar moment did not last. A resentful Russia began seeking greater respect in international affairs, while a rising China set out to challenge Western dominance by constructing an alternative global order.
- In recent years, internal rifts within the Western bloc have become more visible, giving rise to what can be described as a “multipolar West.” India’s foreign policy increasingly reflects an understanding of this evolving dynamic.
- The “America First” approach under former U.S. President Donald Trump deepened these divisions by questioning alliances, revising security commitments, and altering global norms.
- This period compelled both Europe and Asia to reconsider their dependence on U.S. leadership and to pursue strategic autonomy in anticipation of a more unpredictable American role.
- Today, differences among Western allies — on issues like Russia, China, trade, and technology — are substantial. Europe also views with unease the political polarization in the U.S., where internal cultural and ideological conflicts are spilling over into transatlantic relations.
- Despite persisting internal divisions — between eastern and western threat perceptions and northern and southern economic priorities — Europe is unmistakably moving toward greater strategic coherence and a more independent geopolitical identity. This evolution is not a sign of decline but a reconfiguration of power within the West.
- Europe is actively strengthening its defence capabilities, expanding cooperation both within the EU and with partners such as the UK, Canada, Japan, and South Korea. On the economic front, it is seeking to diversify trade by building deeper ties with the Indo-Pacific and Latin America.
- Similarly, America’s key allies in Asia — including Australia, Japan, South Korea, and ASEAN — are adapting to a world where U.S. commitments are less predictable, balancing the need to manage risks with opportunities emerging from a more pluralistic Western order.
- Within this changing landscape, India has become a central partner in Europe’s strategic diversification. The EU’s Joint Communication on relations with India (September 2025) emphasizes that India and Europe share a mutually reinforcing relationship — “India’s success benefits the EU, just as the EU’s success benefits India.”
- For India, however, a multipolar West presents both opportunities and challenges. On one hand, it creates greater flexibility and space for forming varied partnerships within the Western bloc. On the other, the fragmentation of Western unity could dilute global responses to authoritarian assertiveness and introduce new forms of instability in the international order
Broad-based Trade and Investment Agreement (BTIA)’ is sometimes seen in the news in the context of negotiations held between India and (2017)
(a) European Union
(b) Gulf Cooperation Council
(c) Organization for Economic Cooperation and Development
(d) Shanghai Cooperation Organization
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Answer (a)
The Broad-based Trade and Investment Agreement (BTIA) refers to the proposed Free Trade Agreement (FTA) between India and the European Union (EU). Negotiations for this agreement began in 2007, aiming to enhance trade in goods and services, promote investments, and strengthen economic cooperation between India and the EU. However, talks have faced multiple challenges over issues such as market access, intellectual property rights, data protection, and tariff reductions. Efforts to revive negotiations have continued in recent years to deepen the India–EU economic partnership |
- As of June 2025, India’s installed power generation capacity had reached 485 gigawatts (GW). Of this, about 185 GW came from renewable energy sources such as solar, wind, small hydro, and biogas, as per data from the Ministry of New and Renewable Energy (MNRE).
- In addition, large hydro projects accounted for 49 GW, while nuclear energy contributed 9 GW, pushing the total non-fossil fuel capacity just beyond the 50% mark.
- The remaining 242 GW, or nearly 49.9%, came from thermal power plants—mainly coal and gas-based—marking a significant decline from 2015, when thermal energy made up nearly 70% of India’s electricity mix.
- The sharp rise in renewable capacity has begun to show results: carbon dioxide emissions from India’s power sector registered a slight decline in the first half of 2025 compared to the same period the previous year, according to an analysis by the Centre for Research on Energy and Clean Air (CREA), a UK-based think tank.
- This is the first recorded drop in India’s electricity-related COâ‚‚ emissions, partly due to favorable weather conditions reducing energy demand.
- Since over half of India’s total emissions stem from coal use for electricity and heat, this sector remains the country’s largest source of carbon output.
- However, India’s rapid renewable expansion—without corresponding growth in energy storage capacity—has begun to strain the power grid, creating instability.
- The problem is worsened by a slowdown in thermal power additions, which traditionally provide baseload stability, especially during evening demand peaks when solar generation falls.
- Recognizing this challenge, the Government of India has started taking corrective policy measures. It is now re-emphasizing thermal and nuclear energy, including plans for small modular reactors, while also accelerating efforts to develop energy storage systems.
- In February 2025, the Central Electricity Authority (CEA) advised that future solar projects should integrate co-located energy storage to enhance grid reliability.
- Similarly, the Ministry of Power expanded its Viability Gap Funding (VGF) program for battery storage, adding 30 gigawatt-hours (GWh) to the existing 13 GWh, backed by an allocation of ₹5,400 crore.
- According to government data up to June 30, 2025, non-fossil fuel sources—including renewables, nuclear, and large hydro—accounted for 50.1% of India’s installed capacity, overtaking thermal power for the first time.
- This marks a remarkable transition from 30% in 2015 and 38% in 2020, driven largely by the boom in solar and wind power.
- When India signed the Paris Agreement in 2015, it pledged to achieve 40% non-fossil capacity by 2030, a target later raised to 50% in 2022—a goal that the country has now already met.
- The Ember 2025 report on global electricity trends highlighted that while coal use declined in both China and India, the drop in India was viewed as temporary, while in China it was described as structural.
- A separate International Energy Agency (IEA) report predicted that global renewable capacity could more than double by 2030, with solar power accounting for 80% of new additions. It also projected China to remain the largest market for renewables, with India emerging as the second largest.
- Globally, the first half of 2025 saw solar and wind generation surpassing overall demand growth — electricity demand rose by 2.6%, while solar generation grew by 31% and wind by 7.7%. For the first time in history, renewables overtook coal in global electricity generation, with their share reaching 34.3%, compared to 33.1% for coal.
- Despite higher global electricity consumption, power sector emissions plateaued in early 2025. Emission reductions in China and India offset increases in Europe and the United States, signaling a potential turning point in the global transition toward cleaner energy systems
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Answer (A)
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What are the various electoral forms?
For Preliminary Examination: Current events of national and international Significance like special intensive revision (SIR)
For Mains Examination: GS III - Indian Polity
Context:
The Election Commission (EC) has just concluded the special intensive revision (SIR) of electoral rolls in Bihar. It proposes to roll it out in other States in a phased manner.
Read about:
Representation of the People Act, 1950 (RP Act)
Registration of Electors Rules, 1960 (RER)
Key takeaways:
- Section 21 of the Representation of the People Act, 1950 (RP Act) outlines the procedure for the preparation and revision of electoral rolls in India. Under this provision, a summary revision of electoral rolls is conducted before every general or by-election to update voter information. Additionally, the Act empowers the Election Commission (EC) to undertake a special revision of electoral rolls whenever necessary.
- By its order dated June 24, the EC decided to implement a Special Intensive Revision (SIR) of electoral rolls across the country. Since Bihar’s Assembly elections are scheduled for November, the Commission began the process there first, designating July 1 as the qualifying date for voter eligibility.
- The SIR process in Bihar included several steps: submission of enumeration forms by all registered voters; submission of citizenship proof (for those registered after 2003); publication of draft electoral rolls; a period for claims and objections; verification and disposal of these claims by the Electoral Registration Officers (EROs); and finally, the publication of the final roll.
- The process was later challenged before the Supreme Court, which, through interim orders, directed the EC to accept Aadhaar as one of the valid documents to establish identity along with the enumeration forms.
- The final electoral roll for Bihar was published on September 30. The EC now plans to expand the SIR exercise to other States in phases, in line with their respective Assembly election schedules.
- In this context, it is crucial for citizens to understand the various forms related to electoral rolls, which are provided under the Registration of Electors Rules, 1960 (RER). These rules include detailed instructions for filling out each form, and a summary of these is generally made available for public reference.
- While there are differing political opinions on the SIR exercise in Bihar, maintaining accurate and updated electoral rolls remains fundamental to ensuring free and fair elections — the cornerstone of Indian democracy.
- Going forward, the EC is expected to adopt a more spaced-out schedule for similar exercises, allowing sufficient time for voter participation and minimizing procedural hurdles.
- Following the Supreme Court’s direction, Aadhaar will likely continue to be accepted as a valid identity proof in future revisions.
- Meanwhile, citizens are encouraged to check the draft electoral rolls, submit the required forms, and ensure their details are accurate. New voters and those who have moved to different constituencies should complete the necessary applications.
- Active involvement by political parties and civil society organizations in assisting voters—particularly from marginalized groups—will help create a more inclusive and error-free voter list, thereby strengthening the integrity of the electoral process
Representation of the People Act, 1950 (RP Act)
The Representation of the People Act, 1950 (RP Act) is one of the foundational laws that governs elections and voter registration in India. Enacted on May 12, 1950, it lays down the legal framework for the preparation and revision of electoral rolls, the allocation of seats in the legislature, and the delimitation of constituencies. It ensures that every citizen who meets the eligibility criteria can be properly registered as a voter and exercise their right to vote.
Key Features and Provisions
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Electoral Rolls (Section 15–23):
The Act mandates the preparation and revision of electoral rolls for every constituency under the supervision of the Election Commission of India (ECI).-
Section 21 specifically deals with the preparation and periodic revision of electoral rolls.
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The rolls are revised before every general election and can also be specially revised if required.
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The Registration of Electors Rules, 1960 provide detailed procedures for these revisions.
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Eligibility for Registration (Section 19):
Every person who is a citizen of India, at least 18 years old, and ordinarily resident in a constituency is eligible to be registered as a voter. -
Disqualifications (Section 16):
A person may be disqualified from registration if they are:-
Not a citizen of India,
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Of unsound mind, declared so by a competent court, or
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Disqualified for voting under any law relating to corrupt practices or offences in connection with elections.
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Delimitation and Allocation of Seats:
The Act provides for the allocation of seats in the Lok Sabha and State Legislative Assemblies and the delimitation of constituencies based on population data from the latest Census. -
Role of the Election Commission:
The Election Commission of India is entrusted with the supervision, direction, and control of the preparation and revision of electoral rolls. It ensures that the rolls are free from duplication, errors, and ineligible entries. -
Forms and Procedures:
The process for inclusion, deletion, or correction of names in electoral rolls is governed by rules under this Act. Citizens can apply using prescribed forms (Form 6, 7, 8, etc.) as defined in the Registration of Electors Rules, 1960.
Follow Up Question
Mains
1.Discuss the role of the Election Commission of India in the light of the evolution of the Model Code of Conduct. (UPSC 2022)
Prelims
1.Consider the following statements: (UPSC 2017)
- The Election Commission of India is a five-member body.
- The Union Ministry of Home Affairs decides the election schedule for the conduct of both general elections and bye-elections.
- Election Commission resolves the disputes relating to splits/mergers of recognised political parties.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 only
(c) 2 and 3 only
(d) 3 only
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Answer (d)
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Punjab farm fire cases fell 70% in 2024, but total scorched area shows a rising trend
For Preliminary Examination: Current events of national and international significance like Stubble burning issue
For Mains Examination: GS III - Environment and Ecology
Context:
Punjab reported about 70% fewer farm fires in 2024 than in 2023, yet the total area scorched by these fires expanded year-on-year, leading to questions over the accuracy of the data.
Read about:
What is Stubble Burning?
PM2.5 and PM10
Key takeaways:
- Stubble burning is the practice of setting fire to the remains of crops—mainly the stalks and roots left behind in fields after harvesting. It is most common in northern India, especially in states like Punjab, Haryana, and Uttar Pradesh, where farmers grow rice and wheat in rotation.
- After paddy (rice) is harvested, a large amount of straw and stubble remains in the fields. Since farmers usually have only a short window of time before they must sow the next crop, particularly wheat, they often choose to burn the leftover residue instead of removing it by hand or using machines.
- This method is considered quick and inexpensive, but it causes serious environmental and health problems. The burning releases large quantities of smoke, carbon dioxide, carbon monoxide, methane, and fine particulate matter (PM2.5 and PM10) into the atmosphere.
- These pollutants contribute heavily to smog, especially in and around Delhi during the winter months, when cooler air traps the smoke close to the ground.
- The resulting air pollution causes respiratory problems, eye irritation, and worsens diseases like asthma and bronchitis. It also reduces soil fertility by destroying beneficial microorganisms and nutrients.
- Although governments have introduced alternatives such as using crop residue for biofuel, compost, or as fodder, many farmers still rely on burning because it is fast, requires little labor, and avoids the high costs of residue management equipment.
- Therefore, stubble burning remains both an agricultural challenge and a public health concern, tied to questions of farmer livelihood, environmental sustainability, and effective policy implementation
Additional Information
- In 2024, Punjab witnessed a sharp drop of nearly 70% in the number of reported farm fire incidents compared to the previous year, but the overall land affected by burning actually grew, raising doubts about the reliability of the figures.
- According to satellite-based assessments by the Punjab Remote Sensing Centre (PRSC) and the Punjab Pollution Control Board (PPCB), the state recorded 10,909 farm fire cases in 2024, down from 36,663 in 2023.
- Despite this steep decline, the land identified as burnt under paddy residue expanded slightly, from 19.14 lakh hectares in 2023 to 19.17 lakh hectares in 2024.
- These findings were published in a report titled “Comparison of district-wise area classified under residue burning (paddy) for year 2023 and 2024”, covering the period between September 15 and November 30. Data also show that paddy cultivation itself had increased—from over 30.02 lakh hectares in 2023 to around 31 lakh hectares in 2024.
- Experts and former officials argue that burnt area statistics give a clearer picture of the scale of stubble burning, and the latest numbers indicate possible under-reporting of fire incidents in 2024.
- Sources suggest that some farmers may have deliberately timed the burning to avoid detection, carrying it out after satellite monitoring had already passed over their fields.
- While fire incidents are tracked on a daily basis, the actual burnt area is mapped through satellites only once a week, which leaves scope for gaps in reporting
Follow Up Question
Mains
1.Describe the key points of the revised Global Air Quality Guidelines (AQGs) recently released by the World Health Organisation (WHO). How are these different from its last update in 2005? What changes in India’s National Clean Air Programme are required to achieve revised standards? ( UPSC 2021)
Prelims
1.In the cities of our country, which among the following atmospheric gases are normally considered in calculating the value of Air Quality Index? ( UPSC 2016)
- Carbon dioxide
- Carbon monoxide
- Nitrogen dioxide
- Sulfur dioxide
- Methane
Select the correct answer using the code given below:
(a) 1, 2 and 3 only
(b) 2, 3 and 4 only
(c) 1, 4 and 5 only
(d) 1, 2, 3, 4 and 5
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Answer (b)
The Air Quality Index (AQI) in India is calculated on the basis of eight pollutants under the National Air Quality Monitoring Programme (NAMP). These are:
Notice that Carbon dioxide (COâ‚‚) and Methane (CHâ‚„) are not part of AQI calculations. They are greenhouse gases, but they are not considered local air quality pollutants for AQI. So, from the options given:
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FPIs withdraw from Indian equities for third straight month
For Preliminary Examination: Current events of national and international Significance
For Mains Examination: GS III - Economy
Context:
Foreign Portfolio Investors (FPIs) withdrew ₹23,885 crore from Indian stocks in September, making it the third consecutive month of net outflows from the Indian stock market, according to data from the National Securities and Depositories Ltd. (NSDL).
Read about:
Foreign Portfolio Investors (FPIs)
Foreign Direct Investment (FDI)
Key takeaways:
- Foreign Portfolio Investment (FPI) refers to the entry of international investors into a country’s financial markets, mainly through the purchase of shares, bonds, or other financial assets.
- Unlike Foreign Direct Investment (FDI), where investors take a long-term interest in a business by acquiring ownership and management control, FPI is largely about seeking quick financial returns.
- It is typically short-term in nature and involves buying and selling of securities without getting involved in the day-to-day functioning of companies.
- When a foreign investor invests in Indian stock markets, government securities, or corporate bonds through the registered route prescribed by SEBI (Securities and Exchange Board of India), it is treated as FPI.
- These investors could be individuals, hedge funds, mutual funds, or other institutional investors. Since they invest in liquid assets, they can enter or exit the market relatively quickly, depending on the global and domestic economic climate.
- FPI plays an important role in the economy because it brings in foreign capital, adds liquidity to the financial markets, and helps deepen the capital market system. It often reflects global confidence in a country’s growth prospects.
- However, it is also very volatile in nature. If there is global uncertainty, political instability, or unfavorable policy changes, foreign investors can withdraw their money suddenly, causing stock market fluctuations and putting pressure on the currency.
- In India, the government regulates FPI through the Foreign Exchange Management Act (FEMA), while SEBI oversees operational aspects. Categories of FPIs are defined to ensure transparency and compliance.
- Thus, FPI acts as a barometer of investor sentiment and provides much-needed foreign exchange inflows, but its short-term and speculative character makes it less stable compared to long-term investments like FDI
Foreign Direct Investment (FDI)
- Foreign Direct Investment (FDI) refers to an investment made by a foreign entity—whether an individual, a company, or a government—directly into the productive capacity of another country.
- Unlike Foreign Portfolio Investment, which is limited to buying shares and bonds in financial markets, FDI is about acquiring a lasting interest and significant control over a business.
- This often involves setting up factories, offices, or other facilities, or acquiring a substantial stake in an existing company with the intention of influencing its management and operations.
- FDI is generally seen as a long-term commitment. For instance, when a multinational corporation establishes a manufacturing plant in India or acquires majority ownership in an Indian company, it is considered FDI.
- The key feature is not only the transfer of capital but also the transfer of technology, skills, and managerial practices that come along with it. Because of this, FDI is regarded as more stable and development-oriented compared to short-term financial flows.
- Countries encourage FDI because it brings several benefits. It supplements domestic savings and provides much-needed capital for growth, especially in developing economies.
- It also integrates the host country into global supply chains, improves employment opportunities, and fosters technological advancement. At the same time, governments regulate FDI carefully, since it involves foreign control over domestic enterprises and can affect sensitive sectors.
- In India, FDI is regulated under the Foreign Exchange Management Act (FEMA), with the Reserve Bank of India and the Department for Promotion of Industry and Internal Trade (DPIIT) overseeing its implementation.
- FDI can enter either through the automatic route, where no prior government approval is required, or the government route, which needs clearance from the authorities for specific sectors. The proportion of foreign ownership permitted varies by sector, as the government balances the need for foreign capital with considerations of national interest and security.
- Thus, FDI is more than just financial investment—it represents a long-term partnership between foreign investors and the host country, contributing not only capital but also expertise, jobs, and integration into the global economy
Difference
- Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) are two major ways in which foreign capital enters a country, but they differ in their nature, intent, and impact on the economy.
- FDI involves long-term investment where a foreign entity acquires a substantial stake in a company or sets up new facilities, such as factories, offices, or infrastructure.
- The focus here is not only on financial returns but also on gaining managerial control, transferring technology, and building a lasting presence in the host country.
- For example, when a multinational automaker establishes a manufacturing plant in India, it is FDI. Such investment is relatively stable and contributes to employment generation, skill development, and integration into global value chains.
- FPI, on the other hand, is short-term and limited to buying financial assets such as shares, bonds, or debentures in the host country’s markets. Investors in FPI do not seek control or involvement in the operations of companies.
- Their primary goal is quick financial gain, and they can withdraw investments rapidly depending on market conditions. For instance, when foreign mutual funds purchase Indian stocks, it is considered FPI.
- While FPI adds liquidity to capital markets and brings foreign exchange inflows, it is highly volatile and can lead to sudden capital outflows that destabilize markets.
Follow Up Question
Mains
1.Discuss the differences between FDI and FPI in terms of their nature, objectives, and impact on India’s economic stability and growth. Also, examine the policy measures taken by the Government of India to attract sustainable foreign investment.
(Answer in 250 words)
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Answer (B)
FII helps in increasing capital availability in general, while FDI only targets specific sectors ✅ Explanation:
The other options are incorrect because:
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