INTEGRATED MAINS AND PRELIMS MENTORSHIP (IMPM) KEY (23/09/2025)

INTEGRATED MAINS AND PRELIMS MENTORSHIP (IMPM) 2025 Daily KEY

 
 
 
 
Exclusive for Subscribers Daily: Indus Waters Treaty (IWT)
Comptroller and Auditor General of India (CAG) and Strategic Mutual Defense Agreement (SMDA), Representation of the People Act, 1950 (RP Act, 1950), Indus Waters Treaty (IWT), Foreign Portfolio Investment (FPI) for the UPSC Exam? Why are topics like Illegal migrants  and India-EU FTA important for both preliminary and main exams? Discover more insights in the UPSC Exam Notes for September 23, 2024
 
 
 
 
For Preliminary Examination:   Current events of national and international Significance
 
For Mains Examination: GS II - Indian Polity
 
Context:
 
The public debt of all 28 states combined trebled in 10 years — from Rs 17.57 lakh crore in 2013-14 to Rs 59.60 lakh crore in 2022-23 — according to a first-of-its-kind report by the Comptroller and Auditor General of India (CAG) that provides a decadal analysis on fiscal health of states.
 
Read about:
 
Comptroller and Auditor General of India (CAG)
 
What is the role and function of the CAG?
 
 
Key takeaways
 
 
  • Ways and Means Advances (WMA) serve as a temporary borrowing mechanism provided by the Reserve Bank of India (RBI) to both the Union and state governments. These funds are intended only to manage short-term mismatches between revenue inflows and expenditure needs, and not as a regular financing tool.
  • Under Section 17(5) of the RBI Act, 1934, the central bank is permitted to extend such advances to governments, provided the repayment is made within three months of disbursement.
  • The Fiscal Health Index for 2022–23, covering 18 major states, evaluated fiscal management on five parameters: expenditure quality, revenue mobilisation, fiscal discipline, debt levels, and debt sustainability.
  • Odisha topped the rankings, followed by Chhattisgarh, Goa, Jharkhand, and Gujarat. The strong performance of Odisha, Chhattisgarh, and Jharkhand was attributed largely to mining-related revenues, whereas states like Punjab, Andhra Pradesh, and West Bengal performed poorly, particularly in revenue mobilisation and fiscal discipline. The findings were presented by CAG K. Sanjay Murthy during the State Finance Secretaries’ Conference.
  • According to the report, the combined public debt of 28 states stood at ₹59.6 lakh crore at the close of FY 2022–23. This amounted to 22.96% of their aggregate Gross State Domestic Product (GSDP) of ₹259.57 lakh crore.
  • Punjab recorded the highest debt-to-GSDP ratio at 40.35%, followed by Nagaland (37.15%) and West Bengal (33.70%). At the other end, Odisha (8.45%), Maharashtra (14.64%), and Gujarat (16.37%) had the lowest ratios. Collectively, states’ debt in 2022–23 equalled 22.17% of India’s GDP, which was ₹268.90 lakh crore.
  • State public debt consists of borrowings through market securities, treasury bills, bonds, loans from commercial banks (including SBI), WMAs from the RBI, as well as funding from institutions like LIC and NABARD.
  • The report reiterated the “golden rule” of public borrowing—that loans should be used for investment and asset creation, not routine expenditure. Yet, 11 states diverted borrowed resources toward meeting revenue deficits.
  • For instance, Andhra Pradesh and Punjab allocated only 17% and 26% of their net borrowings, respectively, to capital spending, while in Haryana and Himachal Pradesh the figure was about 50%
 
Follow Up Question
 
Mains
 
1.Examine the evolving pattern of Centre-State financial relations in the context of planned development in India. How far have the recent reforms impacted the fiscal federalism in India? (UPSC CSE 2025)
 
Prelims
 
1.Consider the following statements : (UPSC CSE 2018)

1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments.

2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments.

3. As per the Constitution of India, it is mandatory for a State to take the Central Government’s consent for raising any loan if the former owes any outstanding liabilities to the latter.

Which of the statements given above is/are correct ?

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer (c)
 

Statement 1: ✅ Correct.
The FRBM Review Committee (N.K. Singh Committee, 2017) recommended that the combined debt-to-GDP ratio of the Union and States should be brought down to 60% by 2023 (40% for the Centre and 20% for the States).

Statement 2: ❌ Incorrect.
At that time, the Centre’s liabilities were much higher than the States’. The Centre’s domestic liabilities were around 49% of GDP, while States’ were about 21% of GDP (the statement reverses the figures).

Statement 3: ✅ Correct.
Under Article 293(3) of the Constitution, a State requires the Centre’s consent to borrow if it owes any outstanding loan to the Union Government

 
 
 
 
For Preliminary Examination:   Current events of national and international Significance
 
For Mains Examination: GS II - International relations
 
Context:
 
Pakistan and Saudi Arabia on Wednesday signed a Strategic Mutual Defense Agreement (SMDA) during Pak Prime Minister Shahbaz Sharif’s and Army Chief Asim Munir’s visit to Riyadh.
 
Read about:
 
What is the Gulf Cooperation Council?
 
What are the kye highlights of SMDA?
 
 
Key takeaways
 
 
  • Although India and the Arab world share deep-rooted civilisational, historical, and religious bonds, New Delhi’s approach to the region for a long time was marked by ideological caution, concern over Pakistan, and reluctance to engage fully.
  • Even as India’s dependence on the Gulf grew significantly — particularly after the oil crises of the 1970s–80s and the rise in Indian expatriate workers (now nearly 10 million) — political ties, especially with Saudi Arabia, remained limited.
  • A shift began in the early 21st century with External Affairs Minister Jaswant Singh’s visit to Riyadh in 2000, followed by King Abdullah’s landmark 2006 trip to India — the first by a Saudi ruler in five decades.
  • Under Prime Minister Modi, however, relations with the Gulf, particularly Saudi Arabia, have advanced into one of the most important aspects of Indian foreign policy.
  • Regular top-level exchanges and diplomatic outreach have expanded cooperation in energy, technology, trade, security, and connectivity, with new initiatives expected during Modi’s ongoing visits.
  • Meanwhile, Saudi Arabia under Crown Prince Mohammed bin Salman (MbS) has transitioned from a traditionally reactive role in regional politics to a more assertive one — intervening in Yemen, spearheading the Qatar blockade, and confronting Iran.
  • Yet, MbS has also shown pragmatism by reconciling with Qatar, re-engaging with Turkey, reaching out to Iran, and signalling openness to normalize relations with Israel, conditional on progress toward a Palestinian state.
  • At the same time, Riyadh is diversifying its foreign ties, moving beyond its reliance on Washington through strategic outreach to China, Russia, and emerging powers. Its entry into the expanded BRICS grouping and growing engagement with Africa and Latin America underline its pursuit of greater influence in a multipolar global order.
  • Within the region, the Gulf Cooperation Council (GCC) remains central. Formed in 1981 by Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, it was conceived as a mechanism to collectively address political, security, and economic challenges amid regional upheavals.
  • Recently, Saudi Arabia and Pakistan signed the Saudi–Pakistan Mutual Defense Agreement (SMDA), shortly after Israeli airstrikes on Qatar. While its exact terms are undisclosed, a joint statement declared that any attack on one would be treated as aggression against both. Responding to speculation, a senior Saudi official noted that the pact covers “all military means,” though denied specific mention of nuclear guarantees.
  • The motivations of both countries differ. For Riyadh, and by extension the Arab Gulf, the pact represents an effort to reduce conflicts in the Middle East. The Saudi–Pakistan defence bond has historically rested on shared religious identity, Saudi financial aid, and Pakistani military backing.
  • Pakistan’s involvement has been notable — Gen. Raheel Sharif has led the Islamic Military Counter-Terrorism Coalition since 2015, and Pakistani troops were deployed to Saudi Arabia in 2018 to assist in the Yemen war. Against this backdrop, Pakistan is seen as a reliable partner, especially as Arab states seek to counterbalance Israeli unilateralism in the region.
  • The timing of the SMDA suggests that Israel’s strikes in Doha were a stronger trigger for the agreement than even the 2019 Houthi drone attacks on Saudi oil facilities, highlighting the erosion of trust between Israel and Arab powers.
  • For Pakistan, however, the calculus is straightforward — leveraging Arab strategic anxieties to strengthen its own deterrence against India while maintaining its longstanding security role in the Gulf.
  • By contrast, India’s defence partnership with Saudi Arabia remains relatively new. This was reflected in the 7th India–Saudi Joint Committee on Defence Cooperation meeting in August 2025, where India offered to train Saudi forces — a function Pakistan has long performed. Nonetheless, the relationship is growing, with recent joint exercises and the establishment of a Ministerial Committee on Defence Cooperation in April 2025.
  • Saudi Arabia’s balanced stance during India–Pakistan tensions has helped this bilateral partnership grow. As such, the new Saudi–Pakistan defense pact, in its current form, is unlikely to significantly alter the South Asian security dynamic
 
 
Follow Up Question
Mains
 
1.The question of India’s Energy Security constitutes the most important part of India’s economic progress. Analyse India’s energy policy cooperation with West Asian countries. (UPSC CSE 2017)
 
Prelims
 
1.In the context of India’s preparation for Climate -Smart Agriculture, consider the following statements: (UPSC 2021)
1. The ‘Climate-Smart Village’ approach in India is part of a project led by the Climate Change, Agriculture and Food Security (CCAFS), an international research program.
2. The project of CCAFS is carried out under the Consultative Group on International Agricultural (CGIAR) headquartered in France.
3. The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) in India is one of the CGIAR’s research centers.
Which of the statements given above is correct?
(a) 1 and 2 only               
(b) 2 and 3 only             
(c) 1 and 3 only                     
(d) 1, 2 and 3
 
Answer (d)
 

Statement 1: ✅ Correct.
The Climate-Smart Village (CSV) approach in India is part of the global program Climate Change, Agriculture and Food Security (CCAFS), which indeed introduced the concept.

Statement 2: ✅ Correct.
CCAFS is part of the Consultative Group on International Agricultural Research (CGIAR), an international consortium headquartered in Montpellier, France.

Statement 3: ✅ Correct.
ICRISAT (International Crops Research Institute for the Semi-Arid Tropics), headquartered in Hyderabad, is one of CGIAR’s research centers.

 
 
 
For Preliminary Examination: Current events of national and international Significance
 
For Mains Examination: GS II - Indian Polity
 
Context:
 
Leader of Opposition in the Lok Sabha Rahul Gandhi on Thursday alleged that there were attempts to delete the names of 6,018 voters from the electoral rolls in Karnataka’s Aland constituency in 2023 by filling out deletion forms online on behalf of locals without their knowledge.
 
Read about:
 
What are the silent features of the Representation of the People (RP) Act, 1950?
 
Who has the responsibility to make an electoral roll?
 
 
Key takeaways:
 
 
  • The Representation of the People Act, 1950 (RP Act, 1950) is one of the foundational laws of India’s electoral system, laying down the framework for preparing and maintaining electoral rolls and regulating how seats are allocated and delimited for elections.
  • Unlike the RP Act, 1951, which deals with the conduct of elections and post-election matters such as disputes and corrupt practices, the 1950 Act focuses primarily on the pre-election stage.
  • One of its key features is the provision for allocation of seats in the Lok Sabha and State Legislative Assemblies. It specifies how many seats each state and union territory will have, and how these seats will be divided among different territorial constituencies.
  • Alongside this, the Act provides for the delimitation of constituencies, meaning it sets the legal basis for drawing and revising constituency boundaries so that representation remains broadly equal across regions.
  • Another important aspect of the Act is the preparation and maintenance of electoral rolls. It authorises the Election Commission of India (ECI) to supervise the process of compiling, updating, and revising electoral rolls for both parliamentary and assembly constituencies. This ensures that only eligible citizens are included, and it provides for periodic revisions to accommodate new voters or remove ineligible ones.
  • The RP Act, 1950 also lays down the criteria for qualification of voters. It makes it clear that every person who is a citizen of India, who is not otherwise disqualified under the Constitution or any law, and who is ordinarily resident in a constituency, has the right to be enrolled as a voter.
  • At the same time, it also provides for disqualifications from voter registration—for example, if a person is not a citizen of India, has been declared of unsound mind by a competent court, or has been convicted of certain election-related offences.
  • An additional silent feature is the provision for special representation. The Act originally provided for reserved seats for Scheduled Castes and Scheduled Tribes in legislatures, in line with constitutional mandates. Over time, amendments to the Act have refined how such reservations are implemented.
  • Overall, the RP Act, 1950 plays a crucial role in ensuring the fairness and inclusiveness of the Indian electoral system by establishing who can vote, how electoral rolls are maintained, and how constituencies are structured. It is, therefore, a legal foundation for India’s democratic process
 
Additional Information
 
  • Under Section 22 of the Representation of the People Act, 1950, electoral registration officers (EROs) of parliamentary constituencies have the authority to correct entries or remove names from electoral rolls.
  • They may do this either on their own initiative or in response to applications made to them. Before passing any order, the ERO is legally bound to conduct an inquiry, allow the voter concerned to present their case, and only then take a decision.
  • Names can be deleted from the rolls if the individual has passed away, no longer resides in the constituency, or has been found ineligible — such as being under 18 years of age or not holding Indian citizenship.
  • The Registration of Electors Rules, 1960 prescribes the formats for new registrations, corrections, and deletions. Among these, Form 7 is specifically meant for filing objections to the inclusion of a voter’s name or for requesting the removal of an existing entry. Any elector may file Form 7 either to remove their own name or to raise objections regarding another voter in their constituency.
  • Form 7 can be downloaded from the Election Commission of India’s voter portal (voters.eci.gov.in), submitted physically to the Booth Level Officer (BLO), or filed digitally through the same portal or the ECINet app.
  • Applicants are required to provide details such as their own name, EPIC number, and phone number, along with the name, address, and EPIC number (if available) of the individual being objected to. The form does not require submission of evidence at the time of filing, though the applicant must sign a declaration.
  • Since 2018, the processing of such applications has been standardised through ERONet, a nationwide portal for EROs, which replaced the earlier state-level systems. Even though the platform is centralised, applications continue to be handled locally by the ERO concerned.
  • Each application triggers a formal process: the ERO must send a notice to the elector whose inclusion is being challenged, provide them seven days to respond, conduct a hearing, and order a field verification by the BLO before issuing a final decision.
  • A key issue is that the online system does not automatically verify whether the EPIC number and phone number submitted actually belong to the applicant.
  • This loophole allows for the possibility of filing a Form 7 by linking someone else’s EPIC with another individual’s phone number. Such misuse reportedly occurred in Karnataka’s Aland constituency, a fact acknowledged by the Election Commission itself.
  • Nevertheless, ECI officials have clarified that attempts to delete names were detected during the ERO’s inquiry. They stress that safeguards exist within the framework of the RP Act and the Registration of Electors Rules. Even though the initial filing may not require proof, any deletion is finalised only after a thorough investigation by both the ERO and the BLO at the local level
 
Follow Up Question
 
1.According to the Representation of the People Act, 1951, in the event of a person being elected to both houses of Parliament, he has to notify within ______ days in which house he intends to function. (Delhi Police Constable 2020) 
A. 22       
B. 10       
C.  20           
D. 15
 
Answer (B)
 
According to the Representation of the People Act, 1951, if a person is elected to both Houses of Parliament, he must intimate within 10 days which House he wishes to serve in.
 
 
 
 
For Preliminary Examination:  Current events of national and international Significance like Indus Water Treaty between India and Pakistan
 
For Mains Examination: GS II - International relations
 
Context:
 
Sixty-five years ago, India and Pakistan signed the Indus Waters Treaty (IWT). Brokered by the World Bank, it divided a collection of rivers into two “national” halves. The western rivers flowing from J&K — Chenab, Jhelum, and the Indus — were for Pakistan’s use, while the eastern rivers in Punjab — Sutlej, Beas, and Ravi — were assigned for India’s exclusive utilisation.
 
 
Read about:
 

What is the Indus Waters Treaty (IWT)?

Know about the Indus Water river system

 

Key takeaways:

 

  • India and Pakistan signed the Indus Waters Treaty (IWT) on September 19, 1960, to regulate the sharing of waters from the Indus River system. The agreement, signed in Karachi by Prime Minister Jawaharlal Nehru and Pakistan’s President Ayub Khan, divided the river basin between the two countries.
  • Under this arrangement, India, as the upper riparian, gained exclusive control over the three eastern rivers—Ravi, Beas, and Sutlej—amounting to nearly 33 million acre-feet (about 20% of the basin’s waters). Pakistan, the lower riparian, received rights over the three western rivers—Indus, Jhelum, and Chenab—giving it access to around 135 million acre-feet, or 80% of the system’s flow.
  • The Indus system itself is composed of six rivers: Indus, Jhelum, Chenab, Ravi, Beas, and Sutlej. Of these, the Indus and Sutlej are antecedent rivers that predate the rise of the Himalayas and carve through deep gorges after originating in Tibet. The remaining four rivers begin in Indian territory.
  • The Indus, which originates near Lake Mansarovar in Tibet (called Singi Khamban or the Lion’s Mouth), enters India at Demchok in Ladakh. Its major right-bank tributaries include the Shyok, Shigar, and Gilgit, while the Zaskar and Hanle flow in from the left bank.
  • The treaty was not just about dividing waters but also about creating mechanisms for governance, arbitration, and infrastructure building. For Pakistan, it enabled the construction of canals, barrages, and dams to transfer water from western rivers for irrigation, reducing dependence on the eastern rivers.
  • For India, exclusive rights over the eastern rivers made possible projects such as the Bhakra–Nangal dam, irrigation of 15 million hectares in Punjab, the Rajasthan Canal, and the Ravi–Beas link canal.
  • More than six decades later, however, the treaty faces new pressures. Political tensions and terror-related incidents have strained its cooperative framework; for example, following the Pahalgam attack, India suspended participation in IWT mechanisms. Yet, the rivers themselves remain oblivious to politics, even as the basin faces unprecedented challenges.
  • Climate change is transforming the hydrology of the region. Rapid glacier retreat in the Hindu Kush–Himalayan ranges is altering flows in the Upper Indus Basin. Extreme floods, like those that devastated Punjab recently, point to a new water reality. In Pakistan’s Punjab, millions were displaced during similar flooding episodes, highlighting shared vulnerabilities that extend beyond treaty provisions.
  • Equally alarming is the problem of siltation. Reservoirs are losing storage capacity, canals are carrying less water, and rising riverbeds are intensifying floods. The recent floods in Punjab deposited heavy layers of silt over farmland, compounding crop losses. The realisation is clear: silt is not waste but a resource that, if managed, can enrich soils, support construction, and mitigate floods. A coordinated national silt management strategy is urgently needed.
  • The IWT was a product of its time, when water was viewed largely in terms of irrigation, canals, and hydropower projects. Today, water management is about far more—resilience against climate shocks, preparedness for disasters, and the sustainability of ecosystems.
  • What matters now is not rigid adherence to a 1960s document but real-time sharing of hydrological data and flood warnings.
  • A lean, flexible framework—similar to the Memorandum of Understanding India already has with China for Brahmaputra flood data—may be more effective than detailed, outdated treaty clauses.
  • As the treaty completes 65 years, it calls for a re-examination in light of contemporary challenges. Dialogue and cooperation remain essential, but equally critical is India’s need to adopt a national siltation policy and modernise its approach to basin management. The true danger lies not in the past divisions of water but in failing to prepare for the escalating climate and ecological crises of the future
 
Follow Up Question
 
Mains
 
1.The interlinking of rivers can provide viable solutions to the multi-dimensional inter-related problems of droughts, floods, and interrupted navigation. Critically examine. (2020)
 
Prelims
 

1.Consider the following pairs (2019)

Glacier River
1. Bandarpunch Yamuna
2. Bara Shigri Chenab
3. Milam Mandakini
4. Siachen Nubra
5. Zemu Manas

Answer (d)

Which of the pairs given above are correctly matched?

(a) 1, 2 and 4

(b) 1, 3 and 4

(c) 2 and 5

(d) 3 and 5

Answer (a)
 
  1. Bandarpunch - Yamuna: The Bandarpunch glacier is located in the Garhwal Himalayas and is indeed one of the sources of the Yamuna River. This is correctly matched.
  2. Bara Shigri - Chenab: The Bara Shigri glacier is located in Himachal Pradesh in the Chandra valley. It feeds the Chandra River, which later joins the Bhaga River to form the Chenab. This is correctly matched.
  3. Milam - Mandakini: The Milam glacier is located in Uttarakhand and is a source of the Gori Ganga River, not the Mandakini River. The Mandakini River originates from the Kedarnath area. This is incorrectly matched.
  4. Siachen - Nubra: The Siachen glacier is located in the eastern Karakoram range and feeds the Nubra River through the Shyok River system. This is correctly matched.
  5. Zemu - Manas: The Zemu glacier is located in Sikkim and feeds the Teesta River, not the Manas River. The Manas River originates in Bhutan. This is incorrectly matched.

Therefore, the correctly matched pairs are 1, 2, and 4

 

Foreign portfolio investors (FPIs)

For Preliminary Examination: Current events of national and international Significance like Foreign Portfolio investment

For Mains Examination: GS III - Economy

Context:

Recently, SEBI Chairman Tuhin Kanta Pandey said that a proposal to permit foreign portfolio investors (FPIs) to trade in non-cash settled, non-agricultural commodity derivatives contracts is currently under review.

 

Read about:

Foreign Direct Investment (FDI)

Foreign Portfolio Investment (FPI)

 

Key takeaways:

 

Foreign Portfolio Investment (FPI) refers to the investment made by non-residents in a country’s financial assets, such as shares, government bonds, corporate debt, mutual funds, and other market instruments. Unlike Foreign Direct Investment (FDI), it does not involve management control or long-term interest in a company.

Key Features:

  • Nature of investment: Short-term, liquid, and primarily profit-oriented.

  • Assets targeted: Stocks, bonds, money market instruments, mutual funds.

  • No control: Investors only hold a financial stake; they do not take part in management or operations.

  • Highly volatile: FPIs can enter or exit the market quickly depending on global conditions, making them sensitive to exchange rates, interest rates, and policy changes.

  • Regulation in India: FPIs are regulated by the Securities and Exchange Board of India (SEBI) and Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA), 1999.

Difference from FDI:

  • FPI is short-term, market-driven, and does not provide management control.

  • FDI is long-term, involves investment in physical assets (factories, infrastructure), and often brings technology and management expertise.

Importance for India:

  • Provides foreign capital inflows to support economic growth.

  • Improves liquidity and depth of financial markets.

  • Reflects global investor confidence in the Indian economy.

  • However, sudden withdrawal of FPIs can trigger stock market volatility and currency depreciation (known as “hot money”)

 

Follow Up Question

1.Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly? (UPSC CSE 2019)

(a) Certificate of Deposit

(b) Commercial Paper

(c) Promissory Note

(d) Participatory Note

 

Answer (d)
 
  • Participatory Notes (P-Notes or PNs) are financial instruments issued by registered Foreign Portfolio Investors (FPIs) to overseas investors who wish to invest in the Indian stock market without registering themselves directly with the Securities and Exchange Board of India (SEBI).

  • They are used to route investments into Indian equities and derivatives while maintaining investor anonymity.

  • Other options:

    • Certificate of Deposit (CD): Short-term money market instrument issued by banks.

    • Commercial Paper (CP): Short-term unsecured debt issued by corporations.

    • Promissory Note: Written promise to pay a specific sum, generally used in debt transactions, not for routing foreign equity investment

 


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