8 August 2026

Business and Economy updates

These updates provide useful context on India's economic indicators, energy diversification, and technological shifts in the transport sector, which are relevant for GS3 and GS2 but lack the singular policy focus required for a higher rating.

Questions

1. Analyze the significance of diversifying energy import sources for India's energy security, with reference to the shift in LPG supply chains. 150 words
   Attempt this — 150 words in 8 min

   0 / 150 words 8:00 Reset
2. Discuss the role of foreign exchange reserves in maintaining macroeconomic stability in India. How do central bank interventions and capital inflows impact the volatility of the rupee? 250 words
   Attempt this — 250 words in 11 min

   0 / 250 words 11:00 Reset

Prelims

1. Which of the following components is primarily responsible for the fluctuations in India's foreign currency assets as reported by the RBI?

   1. A Domestic government bond yields
   2. B Appreciation or depreciation of non-US currency units held in reserves
   3. C Special Drawing Rights (SDR) with the IMF
   4. D Gold reserves held by the central bank

2. What is the primary objective of the government's review of the Model Bilateral Investment Treaty?

   1. A To increase tax revenue from multinational corporations
   2. B To restrict foreign direct investment in sensitive sectors
   3. C To mandate the use of domestic arbitration centers exclusively
   4. D To make the treaty more investor-friendly and align with global practices