INTEGRATED MAINS AND PRELIMS MENTORSHIP (IMPM) 2025 Daily KEY
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Trade Deficit Dilemma and Right to Work, G20 , Launch Vehicle Mark-3 (LVM3), Food price index are important for both preliminary and main exams? Discover more insights in the UPSC Exam Notes for November 24, 2025
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What happened to India’s trade balance?
- The trade balance reflects the gap between a country’s imports and exports. When imports outweigh exports, it results in a trade deficit; the opposite leads to a trade surplus.
- In October 2025, India’s trade deficit widened sharply to $21.8 billion, compared to $9.05 billion in the same month of the previous year.
- This expansion was driven by a surge in imports alongside a slight drop in exports, mainly within the merchandise trade segment, while services trade remained relatively stable.
How did India’s exports fare?
- India’s overall exports slipped by 0.7%, totalling $72.9 billion in October 2025.
- This decline stemmed from an 11.8% fall in merchandise exports, which fell to $34.4 billion. However, services exports recorded an 11.9% increase during the same period.
- Despite October’s weaker performance, India’s export situation over April–October 2025 remained positive, with total exports growing 4.8%, merchandise exports increasing 0.6%, and services exports rising 9.75%.
- India achieved its highest-ever export figures in both Q1 and Q2 of the financial year, primarily due to strong service-sector earnings.
- The key challenge for exports at the moment is the 50% tariff imposed by the U.S., which affects merchandise exports but not services.
Impact of U.S. tariffs
- The elevated U.S. tariffs imposed by President Donald Trump have clearly affected India’s shipments.
- Merchandise exports to the U.S. fell 20.4% in September 2025, the first full month of tariff enforcement, and have been declining since June.
- Although exports to the U.S. rose 15.4% in October compared to September, they still remained 8.6% lower than October last year. Exporters attribute the temporary rise to discounts and market diversification, though the tariff burden remains heavy.
Which sectors suffered most?
Several labour-intensive industries saw notable declines in October 2025:
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Leather goods (–15.7%)
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Gems and jewellery (–29.5%)
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Organic and inorganic chemicals (–21%)
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Engineering goods (–16.7%)
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Cotton yarn (–13.3%)
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Man-made yarn (–11.8%)
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Jute (–27.8%)
Since the U.S. is a major buyer of these products, tariffs have hit these sectors particularly hard. While exporters are seeking alternative markets, such adjustments take time.
Why did imports rise sharply?
- India’s imports grew nearly 15%, touching $94.7 billion in October 2025. Services imports increased modestly by 8.1%, but merchandise imports surged 16.7%, largely due to soaring purchases of gold and silver.
- Gold imports alone jumped almost 200%, reaching $14.7 billion, driven by the festival season falling entirely in October.
- Despite weaker gold imports earlier in the year, this surge led to a 21.4% increase in gold imports during April–October 2025. Silver purchases also spiked by around 530%, although from a much smaller base
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Note: This is a refrence approach to the Question and Model Answer Only
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(a) Industrial output fails to keep pace with agricultural output.
(b) Agricultural output fails to keep pace with industrial output.
(c) Poverty and unemployment increase.
(d) Imports grow faster than exports.
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Answer (c)
Economic development is a qualitative concept—it reflects improvements in living standards, reduction in poverty, better education, health, and overall well-being. Even if absolute and per capita real GNP rise, development is not achieved if poverty and unemployment are also rising, because the benefits of growth are not reaching the population equitably. Therefore, option (c) best captures the situation where higher growth does not translate into genuine economic development |
Are e-KYC norms excluding MGNREGA workers?
For Preliminary Examination: Current events of national and international Significance
For Mains Examination: GS II - Governance
Context:
The Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) covers 26 crore registered workers across 2.69 lakh gram panchayats. Over the last six months, about 15 lakh workers were deleted. But in just one month, between October 10 and November 14 this year, they shot up to 27 lakh — nearly double the six-month total.
Read about:
Periodic Labour Force Survey (PLFS)
Right to Work
Key takeaways:
- The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a social welfare legislation enacted by the Indian government in 2005 with the aim of providing livelihood security to rural households.
- At its core, the Act guarantees the right to work: every rural household is legally entitled to demand up to 100 days of paid employment in a financial year. This employment must be provided by the government, and it must involve unskilled manual labour.
- By making employment a legal right rather than just a welfare provision, MGNREGA seeks to reduce rural poverty, prevent distress migration, and create durable assets that support long-term development.
- MGNREGA is demand-driven, meaning that work must be provided whenever a worker asks for it. If employment is not provided within fifteen days of demanding it, the worker becomes eligible for unemployment allowance, making it one of the few schemes in which the state is legally accountable to citizens.
- The programme is implemented primarily through Gram Panchayats, which identify suitable works, issue job cards, maintain records, and ensure transparency.
- This decentralised approach brings decision-making closer to local communities and allows projects to align with local needs—such as building rural roads, water conservation structures, ponds, drainage systems, or soil improvement works.
- The Act also places strong emphasis on inclusivity and social justice. It mandates that at least one-third of the workers must be women, and wages are paid directly to bank accounts to prevent leakages.
- By assuring a minimum level of income, MGNREGA acts as a safety net during times of drought, crop failure, inflation, or economic distress. It not only empowers rural households economically but also increases their bargaining power in the labour market, as they are no longer forced to accept exploitative wages.
- Overall, MGNREGA represents an important shift in India’s approach to rural development. Beyond merely providing temporary work, it strengthens local infrastructure, promotes environmental sustainability, and enhances social security in villages
Additional Information
- The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) currently covers around 26 crore registered workers spread across 2.69 lakh gram panchayats. In the past six months, nearly 15 lakh names were removed from the rolls.
- However, within just one month — from October 10 to November 14 — deletions rose sharply to 27 lakh, almost twice the total removed in the earlier half-year, and far higher than the 10.5 lakh new registrations during the same period.
- This sudden surge in deletions coincides with the Centre’s intensified effort to carry out e-KYC verification of workers, aimed at eliminating those considered ineligible.
- The Union Rural Development Ministry clarified that verifying the status of MGNREGA workers is an ongoing exercise, and the introduction of e-KYC is meant to enhance transparency, efficiency, and smooth delivery of services. According to the Ministry, over half of all active workers—around 56%—have completed e-KYC so far.
- The government has periodically introduced new verification measures to prevent benefits from reaching unauthorised persons.
- After nearly a year-long pilot beginning May 2022, it made digital attendance compulsory through the National Mobile Monitoring System (NMMS) app, requiring mates or supervisors to upload geotagged photos of workers twice daily.
- In January 2023, the Aadhaar-Based Payment System (ABPS) was also made mandatory. This system uses a worker’s Aadhaar number as the basis for wage payments, which requires linking their Aadhaar to both their job card and bank account.
- The Aadhaar must also be mapped in the National Payments Corporation of India (NPCI) database, along with the bank’s Institutional Identification Number (IIN), for the payment process to function smoothly
Follow Up Question
Mains
1. Recent reforms such as e-KYC verification, digital attendance, and the Aadhaar-Based Payment System (ABPS) have been introduced to enhance transparency in MGNREGA. Critically examine the implications of these measures on worker inclusion, service delivery, and the overall functioning of the scheme.
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Note: This is a refrence approach to the Question and Model Answer Only
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(a) Adult members of only the scheduled caste and scheduled tribe households
(b) Adult members of below poverty line (BPL) households
(c) Adult members of households of all backward communities
(d) Adult members of any household
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Answer (d)
MGNREGA is a universal, demand-driven programme, meaning any adult member of a rural household willing to do unskilled manual work is eligible, irrespective of caste, community, or BPL status
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— The G20, or Group of Twenty, is an informal platform comprising 19 major nations — including Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom and the United States — along with the European Union and the African Union.
— In June 2023, the African Union, which represents 55 nations, became the newest member of the G20.
— The Global Alliance Against Hunger and Poverty was launched during the G20 Leaders’ Summit held in Rio de Janeiro, Brazil. This initiative seeks to intensify global efforts to eliminate hunger and poverty while advancing the Sustainable Development Goals (SDGs). Notably, this is the first G20 Summit hosted on African soil.
— During the summit, the Prime Minister is scheduled to hold bilateral meetings with several world leaders, including Japan’s new Prime Minister, Sanae Takaichi.
— The visit from November 21–23 also includes participation in the sixth IBSA (India, Brazil, South Africa) Summit. In his departure note, the Prime Minister said he would articulate India’s views in alignment with the principles of “Vasudhaiva Kutumbakam” and “One Earth, One Family, One Future.”
— South Africa’s leadership marks the fourth consecutive presidency by a developing nation, helping maintain focus on development-related priorities. This also marks the end of the current presidency cycle. With the United States set to assume the presidency next year, it becomes crucial to secure meaningful outcomes for Africa and the wider Global South.
— The theme guiding this year’s G20 discussions is “Solidarity, Equality and Sustainability.” South Africa has continued to build on the progress made in the earlier summits in New Delhi and Rio de Janeiro. Since taking charge in December 2024, South Africa has emphasised development-centric goals, particularly those relevant to Africa. Key agenda items include disaster resilience, sustainable debt management for poorer countries, financing for equitable energy transition, and the responsible use of critical minerals for inclusive growth.
— Because G20 decisions require unanimity, the possibility of a US boycott may prevent the adoption of a joint communiqué at the South Africa summit. With the US set to lead the grouping next year, concerns arise regarding the future direction of the G20’s agenda.
— Developments since the beginning of Donald Trump’s second term highlight that even a broadly representative grouping can achieve very little without US participation, at least in the near term.
— The G20 was formed in 1999 after the Asian financial crisis of 1997–98 exposed the limitations of the G7. Global economic interdependence created by rapid WTO-led globalisation meant that a wider forum was needed.
— Initially, the G20 acted as a platform for finance ministers and central bank chiefs from major advanced and emerging economies to discuss global financial and economic challenges.
— Following the 2007–08 global financial crisis, the G20 was elevated to a leaders’ forum to coordinate international crisis response. Since 2009, annual G20 Leaders’ Summits have established it as the foremost platform for global economic cooperation.
— Despite the name, the current G20 extends far beyond 20 individual countries. It includes the G7, the EU, Russia, major emerging economies such as China, India, Brazil, and South Africa, as well as the African Union’s 55 members. The EU alone represents 27 countries, making the grouping much larger than the numerical label suggests
Follow Up Question
Mains
1.With the African Union joining the G20 and South Africa steering the presidency with a development-centric agenda, the grouping is undergoing a structural and geopolitical transition. In this context, critically examine the evolving role of the G20 in addressing global economic challenges, especially for the Global South. Also discuss the implications of a potential US disengagement for the future functioning of the G20
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Note: This is a refrence approach to the Question and Model Answer Only
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Answer (B)
The Montreal Protocol (1987) specifically deals with the control, reduction, and eventual elimination of ozone-depleting substances (ODS) such as CFCs, halons, and HCFCs.
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— Satellites cannot reach space independently; they must be transported using launch vehicles such as the PSLV. These rockets rely on high-powered propulsion systems that provide the massive thrust needed to lift heavy payloads into orbit and counter Earth’s gravity.
— The Polar Satellite Launch Vehicle (PSLV), India’s third-generation launch system, first flew in 1994. With over 50 successful missions, it has earned the title “ISRO’s workhorse” for repeatedly deploying satellites into low Earth orbit (below 2,000 km) with remarkable reliability.
— Geosynchronous Satellite Launch Vehicles (GSLVs) play a crucial role in placing communication satellites into geosynchronous transfer orbits. As per the European Space Agency, such satellites are typically positioned in geostationary orbit—an altitude of about 35,786 km above the equator.
— ISRO’s strongest rocket is the LVM3 (formerly GSLV Mk-3), capable of lifting around 8,000 kg to low Earth orbit and 4,000 kg to geosynchronous orbit.
— LVM3 employs solid, liquid, and cryogenic propulsion stages and has been used for key missions including Chandrayaan-2, Chandrayaan-3, and OneWeb launches. For the current mission, ISRO aimed for a slightly lower orbit (approximately 29,970 km at its highest point) to support a heavier payload.
— To enhance its lifting capacity by about 10% over the previous LVM3-M4 mission, ISRO upgraded the vehicle. The cryogenic upper stage was improved from the C25 (28,000 kg fuel, 20 tonnes thrust) to the more capable C32 (32,000 kg fuel, 22 tonnes thrust). Due to its strength, the rocket is often referred to as “Bahubali.”
— The first PSLV-N1 launch will carry the EOS-10 Earth observation satellite.
— The mission, initially planned for early 2025, was postponed because the satellite was not yet ready, even though a privately built PSLV could have been launched this year.
— In 2022, ISRO initiated the commercialisation of the PSLV, making it the first Indian rocket to be opened up for production by private industry after reforms in the space sector.
— Under the agreement with the HAL–L&T consortium, five PSLVs will be produced for ISRO, with the possibility of additional orders later.
— This arrangement differs from the SSLV model, where companies were responsible for manufacturing the vehicle and marketing launches from the start, based entirely on market demand.
— SSLV technology has already been handed over to HAL, which is also a member of the PSLV manufacturing consortium
Follow Up Question
Mains
1.Discuss the significance of India’s ongoing efforts to commercialise its launch vehicle ecosystem, particularly the PSLV and LVM3. How do these developments strengthen India’s space capabilities, and what challenges may arise in transitioning to greater private-sector participation?”(250 words)
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Note: This is a refrence approach to the Question and Model Answer Only
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Answer (A)
Statement 1:“PSLVs launch satellites useful for Earth resources monitoring whereas GSLVs are designed mainly to launch communication satellites.”
Statement 2:“Satellites launched by PSLV appear to remain permanently fixed in the same position in the sky...”
Statement 3:“GSLV Mk III is a four-stage launch vehicle…”
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— This increase is higher than the 2.9% rise in India’s overall merchandise exports, which went from $213.7 billion in April–September 2024 to $219.9 billion in the same period of 2025.
— For the full financial year 2024–25 (April–March), agricultural exports expanded by 6.4%, climbing from $48.8 billion to $52 billion. In contrast, total goods exports barely grew, inching up by only 0.1% from $437.1 billion to $437.7 billion.
— The key drivers of export growth this year have been non-basmati rice, buffalo meat, marine products, coffee, and fruits and vegetables.
— The United States was the destination for $2.7 billion worth of India’s $7.4 billion marine product shipments in 2024–25, accounting for 36.2% of the total. With such dependence, the steep effective tariff of over 58% imposed by the Trump administration might have been expected to severely hurt Indian seafood exports.
— Yet, comparing April–September 2025 with April–September 2024 shows overall marine exports increased from $3.4 billion to $4 billion, even though shipments to the US dipped slightly by 0.4% to $1.3 billion. Exporters appear to have cushioned the tariff impact by boosting sales to China, Vietnam, Japan, Thailand, the EU, and Canada.
— The FAO’s global food price index fell sharply from an average of 119.1 points in 2013–14 to 90 points in 2015–16. This index—based on global prices of selected food commodities, using 2014–16 as the base period (set at 100)—remained below 100 until 2019–20, before rising to 102.4, 133.1 and 140.6 in the next three fiscal years.
— As the FAO index declined from these peaks, India’s agricultural exports slipped to $48.8 billion in 2023–24 and then recovered to $52 billion in 2024–25. Export restrictions on items like wheat, rice, sugar, onions and de-oiled rice bran—imposed by the Modi government to control inflation—also contributed to the volatility.
— The Trump-era tariffs are beginning to show their impact as well, with US-bound exports of marine products, spices and basmati rice falling by 26.9%, 45.1% and 17.8%, respectively, in September. The silver lining is that indications of a possible India-US trade agreement have emerged, with Washington showing signs of easing its earlier hardline approach.
— Similar to exports, India’s agricultural imports recorded faster year-on-year growth in April–September 2025 at 5.9%, rising from $18.4 billion to $19.5 billion. This compares with a 4.5% increase in overall imports, which went from $358.9 billion to $375 billion.
— Unlike exports, which are widely diversified, India’s import basket is concentrated in only a few products. Vegetable oils top the list, with imports rising by 13.5% in April–September 2025 and likely approaching the previous peak of $20.8 billion recorded in 2022–23.
— As noted earlier, agricultural imports grew 5.9% during April–September 2025, outpacing the 4.5% growth in total merchandise imports.
Follow Up Question
Mains
1. “India’s agricultural trade trends in recent years reflect both external shocks—such as global food price volatility and tariff actions by major partners—and domestic policy interventions. Critically examine how these factors have shaped India’s farm exports and imports, and discuss their implications for India’s agricultural economy.”(250 words)
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Note: This is a refrence approach to the Question and Model Answer Only
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(a) Industrial output fails to keep pace with agricultural output.
(b) Agricultural output fails to keep pace with industrial output.
(c) Poverty and unemployment increase.
(d) Imports grow faster than exports.
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Answer (b)
Economic development is a qualitative concept, not just quantitative.
Therefore, an increase in GNP without improvements in people’s well-being does not indicate true economic development. |