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: 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: 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: 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: 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: India's median age is 28.4 years; UNFPA State of World Population 2024 confirms India crossed China as most populous; working-age share peaks ~68% by 2036.

Body: 1) Dividend window — 2018 to ~2055, with state-wise variance (Bihar peaks 2051, Kerala already past). 2) Skill gap — only 4.4% of workforce formally skilled (Economic Survey 2024-25). 3) Schemes — Skill India Digital Hub, PMKVY 4.0, NAPS, Employment Linked Incentive. 4) Risks — automation, weak female participation, mismatch between higher education and industry.

Way forward: Align NEP 2020 vocational integration; expand National Apprenticeship Promotion Scheme (NAPS); fast-track Labour Codes; gender-disaggregated Skill India targets.

Introduction: National Infrastructure Pipeline (NIP) projects ₹111 lakh crore capex over FY20-25; NaBFID created by Act of Parliament 2021 with ₹20,000 crore paid-up capital.

Body: 1) NaBFID sanctions crossed ₹1 lakh crore by Q3 FY25 across roads, renewables and railways. 2) Funding stack — sovereign guarantee, ECB window, tax exemptions under Section 10(48D). 3) Constraints — bond market depth, take-out finance, ALM mismatch.

Way forward: Deepen corporate bond market via SEBI; build infra debt funds; co-financing with multilateral development banks under G20 Common Framework.

Introduction: RBI Monetary Policy Transmission Report 2024 records 175 bps repo cycle (May 2022-Feb 2023) transmitting only ~120 bps to fresh rupee loans and ~75 bps to outstanding loans.

Body: 1) Tools — External Benchmark Linked Lending Rate (EBLR) since 1 Oct 2019; MCLR for legacy book. 2) Frictions — small savings rate stickiness, deposit competition, NBFC parallel rates. 3) Liquidity — Standing Deposit Facility (SDF), VRRR/VRR auctions. 4) Coordination — Ministry of Finance on small savings, FSDC oversight.

Way forward: Align administered small savings rates with G-Sec yield via Shyamala Gopinath formula; deepen overnight call money; broaden EBLR to MSME and personal beyond 2019 sectors.

Introduction: NBFC sector AUM crossed ₹50 lakh crore (RBI Financial Stability Report Dec 2024); credit to GDP from NBFCs ~13%; IL&FS (2018) and DHFL (2019) defaults reshaped supervision.

Body: 1) Scale-Based Regulation effective 1 Oct 2022 — Base, Middle, Upper, Top Layer with PCA-like norms. 2) Risk concerns — unsecured retail (RBI Nov 2023 risk weight increase to 125%), interconnectedness, ALM mismatch. 3) Governance — CFO and compliance officer norms; bank-NBFC co-lending caps.

Way forward: Operationalise NBFC-Upper Layer PCA; deepen corporate bond market; expand NaBFID's take-out finance window; supervisory colleges for large NBFCs.

Introduction: MoRTH built 12,349 km of NH in FY24 (33.8 km/day); Bharatmala Pariyojana Phase-I (2017) covers 34,800 km at ₹5.35 lakh crore — extended completion to FY28.

Body: 1) Asset creation — economic corridors, expressways (Delhi-Mumbai, Dwarka, Bengaluru-Chennai). 2) Financing — toll-operate-transfer (TOT) bundles, NHAI InvIT, NHIT raised ₹16,000+ crore. 3) Constraints — land acquisition, environmental clearances, ribbon development.

Way forward: Sequence Bharatmala Phase-II under National Master Plan; expand TOT and InvIT pipeline; integrate Gati Shakti for forest and wildlife clearances; emphasis on EV charging on NH grid.

Introduction: DPIIT data: FY24 gross FDI inflows $70.95 billion vs $84.83 billion peak in FY22; outward FDI commitments crossed $46 billion in FY24 (RBI Bulletin).

Body: 1) Causes — global rate cycle, China-plus-one slow uptake, US-EU reshoring, BIT vacuum (most BITs terminated post-2016 Model BIT). 2) Sectors — services (39%), computer software, telecom, automobiles attract bulk. 3) Outflows — Indian conglomerates' overseas acquisitions, GIFT IFSC routing. 4) Policy — InvestIndia, NSWS (National Single Window System).

Way forward: Renegotiate BITs (UAE 2024, Australia ongoing); operationalise NSWS as single-window for clearances; sectoral PLI linkage; revisit Model BIT 2016 ISDS clause.

Introduction: Ramesh Chand-NITI study: post-harvest losses 4.6%-15.9% across crops; Agricultural Infrastructure Fund (AIF) ₹1 lakh crore sanctioned through FY33 (MoAFW dashboard).

Body: 1) Storage deficit — 145 MT capacity vs 311 MT foodgrain production; cold storage skewed to potato. 2) AIF disbursals — over ₹50,000 crore sanctioned to 80,000+ projects (Apr 2025). 3) FCI silos — modern steel silos 11.50 LMT (replacing CAP). 4) Cooperative push — World's Largest Grain Storage Plan via PACS approved May 2023, ₹1 lakh crore.

Way forward: Operationalise PACS-led storage in 5,000 villages; expand WDRA-registered warehouses for e-NWR pledge loans; CIPHET-led cold chain training.

Introduction: PDS launched 1960s for urban areas; TPDS 1997 introduced; National Food Security Act 2013 entitles 81.35 crore beneficiaries; ONORC operational across all 36 states/UTs since June 2022.

Body: 1) Evolution — TPDS, Antyodaya Anna Yojana (1.5 crore households), PMGKAY extended five years from Jan 2024 (₹11.8 lakh crore). 2) ONORC — Integrated Management of PDS (IMPDS) on Annavitran portal; over 145 crore portability transactions. 3) Gaps — exclusion errors (Census 2011 base), 35 kg vs PMGKAY 5 kg per person per month difference, FPS leakage.

Way forward: Use SECC 2021 once finalised; e-PoS Aadhaar authentication penetration; cash transfer pilots in surplus states; biometric exemption for elderly.

Introduction: MoFPI Annual Report 2023-24: food processing 7.7% of manufacturing GVA, 12.2% of agri GVA; PMKSY (Pradhan Mantri Kisan Sampada Yojana, formerly SAMPADA) operational since 2017; perishable processing only ~10%.

Body: 1) Constraints — backward linkages, cold chain (only 8.4 lakh MT vs 31 lakh MT demand), credit, MSME formalisation. 2) PMKSY components — Mega Food Parks (24 operational), cold chain (320), integrated cold chains. 3) Operation Greens for TOP (tomato-onion-potato) → All Fruits & Vegetables since 2021.

Way forward: Converge with PM Formalisation of Micro Food Processing Enterprises (PMFME, ₹10,000 crore); align with ONE District ONE Product (ODOP); CIPHET R&D for shelf-life extension.

Introduction: Land is a State subject (Entry 18, List II); Five-Year Plans emphasised land reforms from 1951; average operational holding shrunk to 1.08 ha (10th Agricultural Census 2015-16, refresh underway).

Body: 1) Phases — abolition of intermediaries (Zamindari), tenancy reform, ceiling laws, consolidation, Bhoodan. 2) Successes — West Bengal Operation Barga, Kerala 1969 Act, Karnataka tenancy. 3) Failures — Bihar, UP — political economy of landlordism; cooperatives stalled. 4) Modern issues — digitisation (SVAMITVA, DILRMP), Land Pooling for urbanisation.

Way forward: Accelerate Digital India Land Records Modernisation Programme (DILRMP); SVAMITVA full coverage by 2026; Model Land Leasing Act 2016 (NITI Aayog) adoption.

Introduction: Union Cabinet approved the IndiaAI Mission on 7 March 2024 with an outlay of ₹10,371.92 crore over five years (MeitY); Stanford HAI AI Index 2025 ranks India 2nd globally on AI talent with ~50,460 AI authors and inventors.

Body: 1) Seven pillars — AIKosh datasets, Compute Capacity (10,000+ GPUs PPP), Innovation Centre, Application Development, FutureSkills, Startup Financing, Safe and Trusted AI. 2) Compute gap — single empanelled provider concentration risk; lag against US and China hyperscalers. 3) Foundation-model gap — India funds applied AI but lacks a sovereign frontier model; Sarvam-1 and Krutrim are small relative to GPT-4 class.

Way forward: Operationalise the AI Safety Institute; pre-fund a sovereign frontier-model consortium; mandate compute neutrality; align with the IT (Intermediary) Amendment Rules 2026 on synthetic content.

Introduction: BioE3 Policy approved 24 August 2024; bioeconomy at US$195.3 billion in 2025 (~4.8% of GDP), up from US$10 billion in 2014; 11,855 biotech startups in 2025 (DBT India Bioeconomy Report).

Body: 1) Six BioE3 sectors — bio-chemicals, smart proteins, precision biotherapeutics, climate-resilient agriculture, carbon capture, marine/space biotech. 2) National Biofoundry Network — 21 facilities launched 1 September 2025. 3) Genome-edited rice Kamala (DRR Dhan 100) and Pusa DST Rice 1 released 4 May 2025 via CRISPR SDN-1; ~19% higher yield, 20% lower emissions. 4) Regulatory gap — Supreme Court split verdict on GM mustard DMH-11 (July 2024) directed Centre to frame National GM Crop Policy.

Way forward: Operationalise National GM Crop Policy; bring GEAC under a statutory Biotechnology Regulatory Authority; expand biofoundry access to startups; align SDN-1 exemption with EU/US norms.

Introduction: Mission Divyastra demonstrated Agni-5 MIRV capability on 11 March 2024 — India joined a small club of MIRV powers; Defence R&D budget for 2025-26 stands at ₹26,816 crore (~0.7% of total defence outlay).

Body: 1) Indigenisation pivot — Pralay quasi-ballistic missile inducted 2023; Pinaka exported to Armenia; iDEX startups received 500+ contracts. 2) Restructuring — K. Vijayaraghavan Committee 2023 recommended a Defence Technology Council chaired by PM, slimmer DRDO. 3) Gaps — public R&D ~0.65% of GDP (DST 2024); private defence R&D thin; long programme cycles.

Way forward: Operationalise Defence Technology Council; raise R&D to 2% of GDP per Anusandhan NRF target; expand iDEX and Technology Development Fund; ring-fence frontier-tech budgets.

Introduction: Indian Space Policy 2023 notified by Department of Space on 20 April 2023; FDI policy revised 21 February 2024 — up to 100% under automatic route for satellites (74% for manufacturing, 49% for launch vehicles); ~190 space startups (DPIIT 2025).

Body: 1) Institutional roles — IN-SPACe as single-window authoriser (300+ authorisations), NSIL as commercial arm, ISRO retains R&D. 2) Private milestones — Skyroot Vikram-S suborbital (Nov 2022), Agnikul Agnibaan SOrTeD (May 2024). 3) Legislative gaps — no Space Activities Act yet, no liability/insurance framework, IP allocation between IN-SPACe authorisations and private innovators unclear.

Way forward: Pass Space Activities Bill 2025; ratify Liability and Registration Conventions in domestic law; create a dedicated space-IP regime; structured procurement from private launch providers.

Introduction: Aadhaar reached 1.4 billion enrolments by 2025 (UIDAI); UPI handled 18.4 billion transactions in March 2025; G20 New Delhi Declaration 2023 endorsed DPI as a development framework.

Body: 1) India Stack layers — Identity (Aadhaar), Payments (UPI, Aadhaar Enabled Payments), Data (Account Aggregator, DigiLocker), Sectoral (ABDM, OCEN, AgriStack, ONDC). 2) DPDP Act 2023 — notice and consent, Data Protection Board, exemptions for State processing under Section 17. 3) Governance gaps — DPDP rules pending operationalisation; Aadhaar exclusion documented (Hadi-Reetika Khera research); MOSIP exports to ~12 countries.

Way forward: Notify DPDP Rules with grievance redress timelines; strengthen Data Protection Board independence; mandate exclusion audits; export India Stack via MOSIP partnerships.