GS Paper 3 practice questions for UPSC Mains 2026.

Introduction: RBI Act amended 2016 created the six-member MPC; inflation band 2-6% with 4% target. Headline CPI moderated to ~4.6% in early 2026 (RBI Bulletin).

Body: 1) Toolkit — repo, CRR, OMO, SDF, MSF, LAF corridor. 2) Trade-offs — food inflation, imported inflation from rupee depreciation, growth slowdown. 3) Communication and forward guidance limits.

Way forward: Strengthen RBI's macroprudential toolkit (Section 45W RBI Act); coordinate with Ministry of Finance on supply-side food inflation; review the 2026 inflation-target reset due under Section 45ZA.

Introduction: Combined Centre-State tax-GDP ratio ~17-18%; Centre alone ~11.7% (Economic Survey 2024-25); OECD average ~34%.

Body: 1) Narrow direct tax base — ~8 crore filers, less than 2 crore pay. 2) GST structure — rate rationalisation pending; cess sunset. 3) Compliance leakages, exemptions, exclusions (petroleum, real estate).

Way forward: GoM on GST rate rationalisation under GST Council Article 279A; Direct Tax Code roll-out; widen TDS net and use AIS-based nudges by CBDT.

Introduction: PLFS Annual Report 2023-24 reports female LFPR (usual status, 15+) at 41.7%, up from 23.3% in 2017-18; NFHS-5 records 32.8% female workforce participation.

Body: 1) Composition — agriculture and self-employment dominate; salaried work share stagnant. 2) Structural barriers — unpaid care (NSO Time Use Survey), safety, mobility, skilling. 3) Policy levers — Code on Social Security 2020, Mission Shakti, creche under MGNREGA.

Way forward: Implement four Labour Codes; expand creche infrastructure under Mission Shakti; couple Skill India Digital Hub with women-led FPOs; urban employment guarantee pilots.

Introduction: 16th Finance Commission under Arvind Panagariya was constituted in December 2023 for the award period 2026-31; 15th FC retained vertical devolution at 41%.

Body: 1) 15th FC — 41% vertical share, 2011 Census + demographic performance weight. 2) Issues — cesses and surcharges erode divisible pool (~18-20%), GST compensation sunset, off-budget borrowing by states. 3) Article 280 mandate and grants-in-aid under Article 275.

Way forward: Rationalise cesses; revise FRBM debt path for states; institutionalise GST Council and Finance Commission interface.

Introduction: Gross NPAs of scheduled commercial banks fell to a 12-year low of 2.6% in March 2025 (RBI Financial Stability Report, June 2025); credit growth at ~13.7% outpacing deposit growth ~10.8%.

Body: 1) IBC 2016 and 4R framework (Recognition, Resolution, Recapitalisation, Reforms). 2) Credit-deposit gap and reliance on certificates of deposit. 3) Governance — PSB Reform Agenda EASE, RBI PCA framework.

Way forward: Strengthen IBC resolution timelines (Section 12), expand digital deposits via UPI-linked products, complete privatisation roadmap per NITI Aayog.

Introduction: Union Budget 2025-26 pegs the Centre's fiscal deficit at 4.4% of GDP, down from a pandemic peak of 9.2% (2020-21); FRBM Act 2003 originally targeted 3%.

Body: 1) FRBM trajectory and N.K. Singh Committee debt-anchor (Centre 40%, States 20%, General 60%). 2) Composition risks — capex push (₹11.21 lakh crore), subsidy stickiness, off-budget liabilities. 3) State finances and 16th Finance Commission window. Cite RBI State Finances 2024-25.

Way forward: Operationalise an independent Fiscal Council (NK Singh recommendation); shift FRBM to debt-to-GDP anchor; align Centre-state borrowing under Article 293(3).

Introduction: UPI processed 18.4 billion transactions worth ₹24.77 lakh crore in May 2025 (NPCI data); Aadhaar enrolment crossed 1.4 billion; the India Stack now spans identity, payment, data and discovery layers.

Body: 1) Four layers — Aadhaar/DigiLocker (identity), UPI/AePS (payment), Account Aggregator/DEPA (data), ONDC/OCEN (discovery and credit). 2) DPDP Act 2023 — Data Principal rights, Consent Manager, Data Protection Board, child data norms. 3) Gaps — algorithmic accountability, deemed consent narrowness, cross-border data flow rules pending.

Way forward: Notify DPDP Rules with grievance redress; standardise Account Aggregator under RBI Master Directions; export DPI through G20 Global DPI Repository; preserve open standards via MOSIP.

Introduction: CACP fixes MSP for 22 mandated crops plus toria and dehusked coconut; FCI procurement covers ~30% of paddy and ~35% of wheat output, but under 10% of pulses and oilseeds.

Body: 1) Computation — A2+FL formula; Swaminathan C2+50% demand. 2) Distortions — groundwater depletion (CGWB 2024 report), MSP-driven monoculture in Punjab-Haryana, fiscal cost (food subsidy ₹2.05 lakh crore 2025-26 BE). 3) Reform pillars — PM-AASHA, PSS, e-NAM, e-Samridhi portal.

Way forward: Expand procurement of pulses/oilseeds via NAFED under PM-AASHA; price deficiency payments in Madhya Pradesh-style PSS; link to PMFBY and PM Kisan; scale e-NAM Platform of Platforms to 2,700 mandis.

Introduction: Digital Agriculture Mission 2024 has an outlay of ₹2,817 crore; AgriStack builds a federated farmer ID linked to land records and Krishi Decision Support System.

Body: 1) Stack components — Farmer Registry, Geo-referenced village maps, Crop Sown Registry. 2) Use cases — PM-KISAN targeting, KCC, PMFBY claim settlement, advisories via Kisan Sarathi. 3) Exclusion risks — tenancy invisibility, female cultivators, internet access in tribal blocks.

Way forward: Anchor AgriStack to DPDP Act 2023 consent norms; co-design with Krishi Vigyan Kendras; subsidise Kisan Drone use under SMAM.

Introduction: India's food processing GVA contributes ~1.7% of GVA and ~7.7% of manufacturing GVA (MoFPI Annual Report 2024-25); processing levels at ~10% vs 30%+ in Thailand.

Body: 1) Constraints — cold-chain gap, fragmented sourcing, APMC frictions, low R&D. 2) Schemes — PLI for Food Processing (₹10,900 crore), PMKSY mega food parks and cold-chain. 3) Aggregation — FPOs and One District One Product.

Way forward: Operationalise 10,000 FPOs scheme; revise APMC Acts under e-NAM; expand PMFME for micro units.

Introduction: India Semiconductor Mission (ISM) launched 2021 with ₹76,000 crore outlay; approved fabs include Tata-PSMC Dholera, Micron ATMP Sanand, CG Power-Renesas, Kaynes Sanand and Tata Jagiroad OSAT (cumulative ~₹1.5 lakh crore investment).

Body: 1) Strategic logic — chip imports ~$30 bn FY24; geopolitical concentration in Taiwan and Korea; Pax Silica framing. 2) Programme architecture — SPECS, DLI, modified incentive scheme covering 50% capex. 3) Risks — IP and talent gap, water and power needs (Dholera 110 ML/day), trailing-edge node focus (28-65 nm).

Way forward: Scale Semicon India 2.0 with leading-edge node pathway; expand C-DAC and IITs through Chips to Startup; align with US CHIPS Act dialogue and Quad supply chain.

Introduction: The Ministry of Home Affairs reports LWE-affected districts have shrunk from 126 in 2014 to 38 in 2024, with violent incidents down ~73% since 2010 (MHA Annual Report 2023-24).

Body: 1) SAMADHAN doctrine — Smart Leadership, Aggressive Strategy, Motivation and Training, Actionable Intelligence, Dashboard-based KPIs, Harnessing technology, Action plan for each Theatre, No access to financing. 2) Security forces — CRPF CoBRA, state police, Greyhounds; tech inputs from NTRO, UAVs. 3) Development — Special Central Assistance, Aspirational Districts Programme, road connectivity (RCPLWEA), mobile towers, banking-financial inclusion.

Way forward: Sunset SCA only when violence is zero for 3 consecutive years; expand Skill India in Bastar; align with Forest Rights Act recognition under MoTA.

Introduction: Indian Space Policy 2023 demarcates roles of ISRO (R&D), IN-SPACe (regulator-promoter), NSIL (commercial arm) and NGEs (private entities); India's space economy is targeted at $44 bn by 2033 (IN-SPACe Decadal Vision).

Body: 1) Policy enablers — 100% FDI under automatic route (revised 2024), GST relief, technology transfer norms. 2) Achievements — SpaDeX docking, EOS-08, Agnikul Cosmos, Skyroot Vikram-S. 3) Gaps — Space Activities Bill pending, IP and liability law, venture capital depth.

Way forward: Enact Space Activities Bill in 2026; expand IN-SPACe Technology Transfer Centre; deepen ANIC and venture financing under DPIIT.

Introduction: Cabinet approved the BioE3 Policy (Biotechnology for Economy, Environment, Employment) in August 2024; India's bioeconomy is estimated at $165.7 billion (~5.2% of GDP, India BioEconomy Report 2024) and is targeted at $300 billion by 2030.

Body: 1) BioE3 pillars — bio-based chemicals, functional foods, precision biotherapeutics, climate-resilient agriculture, marine and space research, carbon capture. 2) Genome India Project sequenced 10,000 whole genomes (Jan 2025 milestone); IBDC repository. 3) Gene editing — DBT 2022 guidelines exempt SDN-1, SDN-2 from GM regulation under EPA 1986.

Way forward: Operationalise National Bio-manufacturing Hubs; align Drugs and Cosmetics Act with CDSCO biosimilar pathway; fast-track Cell and Gene Therapy NexCAR19 commercialisation.

Introduction: India's updated NDC (Aug 2022) commits to 45% reduction in GDP emissions intensity by 2030 over 2005 levels and 50% non-fossil installed capacity; India's LT-LEDS was submitted at COP27 (2022) targeting net-zero by 2070.

Body: 1) Pathways — power decarbonisation (500 GW non-fossil by 2030), industrial transition (green hydrogen, steel), urban transport (EV30@30). 2) CBAM — EU Carbon Border Adjustment Mechanism transitional phase since Oct 2023, full from Jan 2026; covers steel, cement, aluminium, fertilisers, electricity, hydrogen. 3) Just transition — RECLAIM Framework for closed coal mines.

Way forward: Operationalise CCTS under Carbon Credit Trading Scheme 2023 (MoEFCC, BEE); negotiate CBAM equivalence with EU; expand National Adaptation Fund and Green Hydrogen Mission.

Introduction: India's non-fossil installed capacity crossed 200 GW in 2024 (MNRE); the National Green Hydrogen Mission targets 5 MMT of green hydrogen by 2030 with an outlay of ₹19,744 crore.

Body: 1) Capacity additions — solar 90+ GW, wind 47 GW. 2) Grid integration — round-the-clock RE, BESS auctions under VGF, Green Energy Open Access Rules 2022. 3) Storage and transmission — PSP pipeline 47 GW, Green Energy Corridor phase II.

Way forward: Scale SIGHT incentives under NGHM; auction 13 GWh BESS under VGF; complete Green Energy Corridor and ISTS waiver extension.

Introduction: Biological Diversity (Amendment) Act 2023 streamlines ABS, exempts AYUSH practitioners and codified traditional knowledge; India is one of 17 mega-diverse countries hosting 7-8% of global recorded species (NBA Annual Report 2023-24).

Body: 1) Three-tier structure — NBA, SBBs, BMCs and the People's Biodiversity Register. 2) 2023 Amendment — narrower ABS for domestic users, faster IP approvals, Section 36A reforms. 3) Critiques — dilution risk, AYUSH exemption breadth.

Way forward: Strengthen NBA capacity; integrate the Nagoya Protocol; align with WIPO Genetic Resources Treaty 2024.

Introduction: India recorded its longest heatwave ever in summer 2024 with 536 heatwave days (IMD); over 40 cities now have Heat Action Plans (HAPs), but only 11 are state-level.

Body: 1) Health burden — 11,000+ suspected heat deaths since 2013 (NCDC). 2) HAP gaps — single-season focus, weak cooling-centre network, no labour rules. 3) Disaster Management Act 2005 silence on heat as 'notified disaster'.

Way forward: Notify heatwave under DM Act 2005; mandate cool-roof and white-paint norms via MoHUA; integrate with NDMA Heat Wave Guidelines 2019 and Ayushman Bharat Health and Wellness Centres.

Introduction: The Disaster Management (Amendment) Act 2024 introduces statutory backing for the National Crisis Management Committee, creates Urban Disaster Management Authorities (UDMAs) in state capitals, and clarifies the role of NDMA and NEC.

Body: 1) Key changes — statutory plans by NDMA and SDMA; database of disaster losses; database role of NDMA. 2) Financing — NDRF, SDRF, NDMF; 15th FC allocations — ₹1.28 lakh crore for SDRF and ₹68,463 crore for NDRF. 3) Gaps — declaration of 'national disaster' unresolved; man-made disasters under-defined.

Way forward: Notify UDMAs by 2026 in mega-cities; converge with Sendai Framework targets; expand C-FLOOD and INSAT-3DS-based early warning.

Introduction: CERT-In reported over 22 lakh cyber incidents in 2024 (Annual Report); India ranked 10th in ITU Global Cybersecurity Index 2024 (Tier 1).

Body: 1) Institutions — CERT-In (MeitY), NCIIPC under NTRO, I4C under MHA, NCSC, Defence Cyber Agency. 2) Laws — IT Act 2000, DPDP Act 2023, Section 70 CII regime, draft Digital India Act. 3) Gaps — sector-specific CSIRTs limited, attribution lag, OT and IoT exposure.

Way forward: Operationalise Digital India Act; expand NCIIPC sectoral coverage; mandate PQC migration timeline per CERT-In; ratify Budapest Convention dialogue.