Current Affairs — 21 September 2026

1. Tulu Gets Additional Official Language Status in Karnataka

Basic Concept

India recognises languages at two distinct levels. The Eighth Schedule of the Constitution currently lists 22 "scheduled languages," inclusion in which brings benefits such as representation on the Official Languages Commission, translation of laws, and eligibility as a medium/subject in competitive examinations including the UPSC Civil Services Examination. Separately, under Article 345, a state legislature may adopt any one or more languages in use within the state for official state purposes, quite independent of Eighth Schedule status. Tulu is a Dravidian language spoken mainly in the coastal Karnataka districts of Dakshina Kannada and Udupi and in parts of Kasaragod in Kerala, with an attested literary and performance tradition (including the Yakshagana theatre form) stretching back over two millennia, and it has historically been written in the Tigalari (Tulu) script.

Core Context

The Karnataka Cabinet has approved granting Tulu "additional official language" status specifically within Dakshina Kannada and Udupi districts, with an annual allocation of about ₹82 lakh to support implementation. The decision will require amending the Karnataka Official Language Act, 1963, and paves the way for wider use of Tulu in local government functioning and signage in the two districts, alongside Kannada.

Latest Developments

• The move responds to a long-standing demand from Tulu literary and cultural organisations, distinct from the separate, more difficult demand for Tulu's inclusion in the Eighth Schedule of the Constitution, which needs a constitutional amendment and Union government action.

• Tulu remains outside the Eighth Schedule even though it is spoken by several million people and has an Akademi-recognised literary tradition, illustrating how linguistic recognition in India is often incremental and layered across state and Union levels.

• The decision is being read as part of a broader pattern where India's linguistically diverse states extend official recognition to demographically concentrated minority languages within specific districts rather than state-wide.

UPSC Prelims Pointers

• Tulu belongs to the Dravidian language family and is written traditionally in the Tigalari script.

• The Eighth Schedule of the Constitution presently lists 22 languages; Tulu, Bhojpuri, and Rajasthani are prominent languages still outside it.

• Article 345 empowers a state legislature to adopt any language(s) in use in the state for official state purposes.

• Dakshina Kannada and Udupi, the two districts covered by this decision, lie in coastal Karnataka.

2. Scientists Flag a Possible "Super El Niño" for 2026-27

Basic Concept

El Niño is the warm phase of the El Niño-Southern Oscillation (ENSO), a periodic warming of sea-surface temperatures in the central and eastern equatorial Pacific Ocean that disrupts normal wind and rainfall patterns worldwide. A "Super El Niño" refers to an exceptionally intense episode, historically associated with events such as 1997-98 and 2015-16, which have been linked to weakened Indian monsoons, droughts, coral bleaching episodes, and altered cyclone activity across the Indian Ocean basin. Because India's agriculture and water security remain heavily monsoon-dependent, ENSO forecasts are closely tracked by policymakers and disaster-management agencies.

Core Context

Climate scientists have reported that a Pacific sea-surface temperature anomaly reached about +2.6°C in August 2026, with some projections suggesting it could climb toward +4.0°C, which would make it unprecedented in roughly a thousand years of reconstructed climate records. Researchers are urging early documentation of ecosystem baselines, since the most pronounced impacts are expected to build up from around November 2026 onward.

Latest Developments

• Potential downstream effects being discussed include a weaker or delayed monsoon in the following cycle, drought stress in vulnerable regions, increased risk of coral bleaching, and elevated wildfire risk in fire-prone regions.

• A Super El Niño year typically also affects global food and commodity prices because it simultaneously stresses major agricultural regions across different continents.

• India's disaster-management and agriculture ministries typically use such advance ENSO signals to plan contingency measures such as drought-proofing, seed-bank readiness, and reservoir management.

UPSC Prelims Pointers

• El Niño is associated with warming of the central/eastern equatorial Pacific; La Niña is its cooling counterpart.

• El Niño years have historically correlated with below-normal Indian monsoon rainfall, though the relationship is not absolute.

• The India Meteorological Department (IMD) and international bodies like NOAA track ENSO indices such as the Oceanic Niño Index (ONI).

• Coral bleaching is a stress response in which corals expel symbiotic algae (zooxanthellae) due to elevated sea temperatures.

3. UN's "Gender Snapshot 2026" Flags Slowing Progress on Gender Equality

Basic Concept

UN Women and allied UN agencies periodically publish a "Gender Snapshot" report tracking global progress toward Sustainable Development Goal 5 (Gender Equality) using indicators spanning economic participation, unpaid care work, political representation, and institutional capacity for gender-responsive policymaking. Such reports are useful for benchmarking India's own performance (via indices such as the Gender Inequality Index) against global trends and for understanding how funding and institutional support for gender programmes shift during periods of fiscal stress or shifting donor priorities.

Core Context

The 2026 edition of the report finds that roughly one-third of national and international gender-equality institutions have weakened in recent years, alongside a reported 13% drop in gender-focused development aid and a steeper 28% fall in funding reaching women's organisations directly. At the current pace of change, the report estimates full gender equality is roughly 171 years away.

Latest Developments

• The report notes that women continue to perform about two-and-a-half times more unpaid care work than men globally, a structural barrier to their full labour-force participation.

• Political leadership remains skewed: the report highlights that men head the majority of countries surveyed in a comparative sample.

• Declining donor funding for grassroots women's organisations is flagged as especially damaging because such organisations often deliver last-mile services that large institutions cannot.

UPSC Prelims Pointers

• SDG 5 (Gender Equality) is one of the 17 Sustainable Development Goals under the 2030 Agenda.

• The Gender Inequality Index (GII) is published annually by the UNDP as part of the Human Development Report.

• "Unpaid care work" refers to domestic and caregiving labour performed without direct monetary compensation, a key concept in feminist economics.

• UN Women is the UN entity dedicated to gender equality and women's empowerment, created in 2010.

4. Special Intensive Revision (SIR) of Electoral Rolls Draws Scrutiny Over Mass Deletions

Basic Concept

The Election Commission of India (ECI) is constitutionally mandated under Article 324 to prepare and periodically revise electoral rolls to ensure free and fair elections. A "Special Intensive Revision" (SIR) is a more rigorous, house-to-house verification exercise (as opposed to routine summary revisions) meant to remove ineligible entries such as duplicate, deceased, or shifted voters, and is typically undertaken ahead of major elections or after long gaps in comprehensive verification.

Core Context

Commentary around the ongoing SIR exercise has drawn attention to the scale of deletions from draft electoral rolls, with cumulative reported deletions running into several crore names across multiple states and Union Territories, and deletion rates varying widely between states (from roughly the mid-teens percentage in some states to over half of certain draft rolls in others). Opposition parties have alleged that the burden of proving continued eligibility has effectively shifted onto ordinary citizens rather than resting with state-level verification machinery, while the ECI maintains the exercise is necessary for roll accuracy.

Latest Developments

• Because deletion rates differ sharply across states, critics argue the exercise risks disenfranchising genuine voters, particularly the poor, migrant workers, and those without ready access to the required documents, ahead of the SIR being rolled out nationally.

• The ECI's process typically involves distribution and collection of enumeration forms, followed by publication of a draft roll, a claims-and-objections window, and then a final roll, giving affected citizens a formal opportunity to get their names restored.

• The debate has revived a broader constitutional discussion on balancing the ECI's mandate to maintain "purity" of electoral rolls against citizens' fundamental right to vote and be represented fairly.

UPSC Prelims Pointers

• Article 324 vests the ECI with superintendence, direction, and control of elections, including preparation of electoral rolls.

• Article 326 provides for elections to the Lok Sabha and state assemblies on the basis of adult suffrage.

• The Representation of the People Act, 1950 governs the preparation and revision of electoral rolls.

• A "draft roll" is published for public claims and objections before a "final roll" is notified.

5. Sharp Decline in NGO FCRA Registrations Reshapes India's Funding Landscape

Basic Concept

The Foreign Contribution (Regulation) Act (FCRA), 2010 (amended in 2020) regulates the acceptance and utilisation of foreign contributions by individuals, associations, and companies in India, requiring registration or prior permission from the Ministry of Home Affairs and mandating that funds be routed through a designated FCRA bank account. The law is meant to ensure foreign funding does not compromise India's sovereignty, security, or public order, but it has also drawn criticism for making compliance onerous for genuine civil-society organisations engaged in welfare and rights work.

Core Context

Reports show that more than 22,496 NGO FCRA registrations have been cancelled since 2015, leaving roughly 14,466 associations still eligible to receive foreign funds. In parallel, domestic philanthropic giving in India is projected to reach about ₹1.43 lakh crore in FY25, positioning domestic sources as an increasingly important substitute as foreign aid recedes, even though newer, high-visibility sectors tend to attract more domestic funding than traditional welfare areas.

Latest Developments

• The cancellations have been attributed variously to non-compliance with reporting/audit requirements, alleged violation of FCRA conditions, and, in some cases, to national-security related concerns cited by the government.

• Domestic philanthropy, spanning corporate CSR spending (mandated under Section 135 of the Companies Act, 2013), high-net-worth individual giving, and public charitable trusts, is being seen as a structural cushion, though it does not uniformly reach the same sectors that foreign funding traditionally supported (e.g., grassroots human-rights or minority welfare work).

• Analysts caution that the funding transition could leave certain traditional welfare sectors comparatively underfunded even as overall philanthropic capital in India expands.

UPSC Prelims Pointers

• FCRA, 2010 replaced the earlier FCRA of 1976 and is administered by the Ministry of Home Affairs.

• All FCRA remittances must be received only through a specified FCRA account at the State Bank of India, New Delhi Main Branch.

• Section 135 of the Companies Act, 2013 mandates CSR spending for companies meeting specified net worth, turnover, or profit thresholds.

• FCRA registration is typically valid for five years and must be renewed periodically.

6. UGC's Equity-Promotion Regulations: Protest Called Off After Government Assurance

Basic Concept

The University Grants Commission (UGC) periodically issues regulations to promote equity and prevent discrimination in higher-education institutions, given India's constitutional commitments under Articles 15, 16, and 46 to protect the interests of Scheduled Castes, Scheduled Tribes, and other disadvantaged groups. Caste-based discrimination in premier institutions such as the IITs, despite reservation policy, has repeatedly surfaced as a governance and social-justice concern, prompting periodic institutional and regulatory responses.

Core Context

Planned protests against the UGC's 2026 draft caste-equity regulations, notified earlier this year and subsequently stayed by the courts, were called off after the government committed to a three-week review of the draft. The debate had intensified following an alleged caste-discrimination-linked death of a student at IIT Bombay, which reignited scrutiny of institutional accountability mechanisms for handling discrimination complaints on campuses.

Latest Developments

• The episode highlights the continuing gap between reservation policy on paper and lived experience of marginalised students within elite technical and higher-education institutions.

• UGC regulations of this kind typically seek to mandate equity cells, grievance-redressal mechanisms, and disciplinary consequences for institutions found to tolerate caste-based discrimination.

• The government's decision to review rather than immediately withdraw or enforce the draft reflects the balancing act between student/civil-society demands for stronger safeguards and institutional pushback over compliance burdens.

UPSC Prelims Pointers

• The UGC was established under the UGC Act, 1956 to coordinate and maintain standards in university education.

• Article 15(4) and 15(5) enable the State to make special provisions for socially and educationally backward classes, SCs, and STs.

• The SC/ST (Prevention of Atrocities) Act, 1989 is the principal law addressing caste-based atrocities, distinct from UGC's regulatory/administrative remit over institutions.

• IITs are Institutes of National Importance established under the Institutes of Technology Act, 1961.

7. Nepal Signals a Bid to "Reset" Relations with India

Basic Concept

India's "Neighbourhood First" policy prioritises close, cooperative ties with immediate neighbours including Nepal, with whom India shares an open border, deep cultural and religious links, and the 1950 Treaty of Peace and Friendship. Ties have periodically been strained by disagreements over trade and transit arrangements, boundary issues (e.g., Kalapani-Lipulekh-Limpiyadhura), and political shifts in Kathmandu, requiring periodic diplomatic recalibration from both sides.

Core Context

Nepal's Finance Minister Swarnim Wagle has signalled that the country's new government wants to "reset" relations with India, moving past what he described as "jingoism"-driven narratives. The overture comes as Nepal grapples with reconstruction costs from the Bhotekoshi floods, estimated at $4.7-5 billion, and follows years of intermittently tense ties.

Latest Developments

• Long-pending bilateral issues flagged include overflight rights for Nepal's Bhairahawa and Pokhara international airports (currently constrained by Indian airspace restrictions) and a long-due revision of the bilateral Trade Treaty.

• India has historically extended disaster and reconstruction assistance to Nepal, and flood-recovery cooperation is being cited as one avenue through which renewed goodwill is being built.

• Kathmandu's outreach also needs to be read against the backdrop of China's growing infrastructure and diplomatic engagement with Nepal, which India watches closely as part of its regional strategic calculus.

UPSC Prelims Pointers

• The India-Nepal Treaty of Peace and Friendship was signed in 1950 and underpins the open border and free movement arrangement between the two countries.

• Kalapani, Lipulekh, and Limpiyadhura are disputed boundary points between India and Nepal in the Kumaon-Mahakali region.

• Bhairahawa (Gautam Buddha International Airport) and Pokhara International Airport are two of Nepal's newer international airports facing airspace-related operational constraints.

• "Neighbourhood First" is one of India's stated foreign-policy doctrines aimed at prioritising South Asian neighbours.

8. U.S. Enacts "Russia Sanctions Act": Tariff Risk for India's Oil Trade

Basic Concept

Sanctions and secondary tariffs are foreign-policy tools used by major powers to pressure a target state economically without direct military conflict, but they often have significant spillover effects on third countries that continue to trade with the sanctioned state. India has historically balanced its strategic autonomy and energy-security needs (importing crude oil from diverse sources, including Russia, at competitive prices) against pressure from Western partners to align with sanctions regimes, particularly since Russia's invasion of Ukraine in 2022, which had already triggered earlier rounds of executive-order-based U.S. sanctions.

Core Context

The United States has enacted a new "Russia Sanctions Act," reported to have been signed around 18 September 2026, which empowers the U.S. administration to impose tariffs of up to 100% on entities and countries that continue to import Russian oil and gas. Unlike earlier executive-order-based measures, being enshrined in statute makes this sanctions authority considerably more durable and harder to reverse through a simple change in administration.

Latest Developments

• India is exposed on two fronts: roughly a fifth of its total exports go to the United States (making it vulnerable to retaliatory or associated tariff actions), while Russia supplies roughly half of India's crude-oil imports, making energy security and trade competitiveness pull in opposite directions.

• Indian officials have reportedly cautioned Washington that such measures risk straining bilateral relations, even as India continues to defend its right to source energy based on national interest and price considerations.

• Export-oriented MSMEs are considered particularly vulnerable to any escalation, since they typically have thinner margins and less capacity to absorb tariff shocks compared to large corporates.

• India's External Affairs Minister is expected to raise concerns about such unilateral sanctions measures at the UN General Assembly session, framing them as disruptive to a rules-based, multipolar trading order.

UPSC Prelims Pointers

• India remains one of the largest buyers of discounted Russian crude oil since 2022, alongside China.

• The U.S. is one of India's largest export markets, making bilateral trade policy highly consequential for Indian exporters.

• MSMEs (Micro, Small and Medium Enterprises) are classified in India under the MSME Development Act read with the 2020 revised investment/turnover criteria.

• Secondary sanctions target third-country entities dealing with a sanctioned state, as distinct from primary sanctions imposed directly on that state.

9. Iran Sets Conditions for Reopening the Strait of Hormuz

Basic Concept

The Strait of Hormuz, between Iran and Oman, is one of the world's most critical energy chokepoints, through which roughly a fifth of global oil trade transits en route from Gulf producers to markets in Asia, Europe, and beyond. Any disruption there has outsized effects on global crude prices and, by extension, on oil-importing economies like India, which sources a substantial share of its crude and LNG from the Gulf region.

Core Context

Amid heightened West Asia tensions, Iran has reportedly conveyed, through Qatari mediation, a set of conditions for reopening the strait to normal traffic and lifting associated naval blockade measures: an end to the wider West Asia conflict, release of Iranian funds frozen in foreign jurisdictions, and a lifting of naval blockade activity around its coast. The move follows an earlier Iranian strike on a tanker in the strait that had already unsettled global energy markets.

Latest Developments

• With crude prices already elevated (reported above $100/barrel amid these tensions), continued disruption or the threat of disruption at Hormuz carries direct implications for India's import bill, inflation trajectory, and current account balance.

• Qatar's mediating role reflects its established diplomatic position as an interlocutor between Iran and Western/Gulf stakeholders in successive regional crises.

• Energy-security planners in India track such chokepoint risks closely because a large share of India's crude and LNG imports transit the Gulf region and the Strait of Hormuz specifically.

UPSC Prelims Pointers

• The Strait of Hormuz connects the Persian Gulf to the Gulf of Oman and the Arabian Sea, separating Iran from Oman's Musandam exclave.

• Other major global energy chokepoints include the Strait of Malacca, the Suez Canal, and the Bab-el-Mandeb strait.

• India imports a significant share of its crude oil requirement, making it sensitive to Gulf-region geopolitical shocks.

• Qatar has historically played a mediating role in West Asian conflicts, including Iran-related and Israel-Hamas negotiations.

10. Ukraine Launches Its Largest-Ever Drone Offensive on Moscow

Basic Concept

The Russia-Ukraine war, ongoing since Russia's February 2022 invasion, has increasingly featured long-range drone and missile strikes deep into each other's territory, targeting military, energy, and logistics infrastructure rather than being confined to front-line combat. Such strikes are a form of "economic and infrastructural warfare," aimed at degrading an adversary's capacity to sustain the war effort (e.g., by damaging refineries, power grids, or transport networks) rather than seizing territory directly.

Core Context

Ukraine fired an estimated 1,600 drones at Moscow, timed to coincide with Russia's parliamentary elections, marking the largest such attack on the Russian capital since the war began in 2022. The strikes reportedly targeted oil refineries and logistics infrastructure, underscoring the shift toward hitting economic chokepoints.

Latest Developments

• Targeting refineries and logistics hubs aims to degrade Russia's fuel supply chains and export revenues, which are central to financing its war effort.

• Timing the strikes around Russian elections carries a symbolic dimension, aiming to demonstrate Ukraine's reach and undercut any narrative of normalcy within Russia.

• The scale of such attacks (in the thousands of drones) reflects how low-cost drone swarms have become a central feature of modern warfare, altering traditional calculations of military strength that once centred on manned aircraft and missiles.

UPSC Prelims Pointers

• The Russia-Ukraine war began with Russia's full-scale invasion in February 2022.

• Drone warfare has emerged as a defining feature of the conflict, used for both reconnaissance and long-range strikes by both sides.

• Moscow is the capital of Russia and its most significant political and economic centre.

• Attacks on energy infrastructure during conflicts are sometimes analysed under the concept of "economic warfare."

11. Draft India-EU FTA's Copyright Chapter Raises Concerns Over Fair-Use Exceptions

Basic Concept

India and the European Union have been negotiating a comprehensive Free Trade Agreement (FTA) covering goods, services, investment, and intellectual property, among other areas. India's domestic copyright framework, the Copyright Act, 1957, balances protection for rights-holders with public-interest exceptions such as Section 52 (fair dealing, e.g., for research, education, and reporting) and Section 65A (which criminalises circumvention of technological protection measures but carves out specific exceptions).

Core Context

The draft intellectual-property chapter of the India-EU FTA reportedly adopts enforcement obligations drawn from the WIPO Copyright Treaty (WCT) — such as anti-circumvention rules and technological-protection-measure mandates — while omitting the WCT's own balancing exceptions (e.g., for students, libraries, and internet service providers) from the agreement's National Treatment clause. This asymmetric, "TRIPS-plus" structure could pressure India to tighten its Copyright Act's anti-circumvention and fair-dealing provisions without corresponding safeguards.

Latest Developments

• If enacted as drafted, the changes could narrow protections currently available under Section 52 (fair dealing) and Section 65A of India's Copyright Act, affecting researchers, educators, libraries, and even routine practices like format-shifting.

• "TRIPS-plus" refers to intellectual-property commitments in bilateral/regional trade deals that go beyond the baseline standards set by the WTO's TRIPS Agreement, often sought by developed economies with strong IP-exporting industries.

• Indian industry and civil-society groups working on access to knowledge and digital rights are expected to push back during ongoing negotiation rounds, given India's historical stance of preserving flexibilities within its IP laws.

UPSC Prelims Pointers

• TRIPS (Trade-Related Aspects of Intellectual Property Rights) is a WTO agreement setting minimum global IP standards.

• The WIPO Copyright Treaty (WCT), 1996 is a special agreement under the Berne Convention addressing digital-era copyright issues.

• Section 52 of India's Copyright Act, 1957 lists acts that do not constitute copyright infringement ("fair dealing").

• "TRIPS-plus" provisions are commonly sought in FTAs by IP-exporting economies such as the EU and the US.

12. India's Widening Trade Deficit with China: The "Assembly Trap"

Basic Concept

India's trade relationship with China has long been marked by a structural imbalance: India exports comparatively low-value raw materials and intermediate goods while importing high-value machinery, electronics, and components. Government initiatives like "Make in India" and the Production-Linked Incentive (PLI) schemes aim to build genuine domestic manufacturing capacity and reduce import dependence, particularly in strategic sectors such as electronics and telecom.

Core Context

India's bilateral trade deficit with China widened to $131.4 billion in 2025 (up from $87.2 billion in 2021), even as total bilateral trade touched $167.6 billion. Analysts note that despite headline growth in India's domestic mobile-phone manufacturing, around 91.7% of related imports from China remain intermediate or capital goods, suggesting India has largely industrialised at the assembly stage while remaining structurally dependent on Chinese components — a pattern described as the "assembly trap."

Latest Developments

• The mobile-phone manufacturing success story, often cited as a PLI-scheme achievement, is being reassessed in light of data showing that component-level value addition within India remains limited.

• The trade-deficit widening also reflects gaps in India's mapping of critical technology and mineral dependencies — for instance, in the neodymium-iron-boron (NdFeB) permanent-magnet value chain used in electronics and EVs, where reported domestic market size figures (around ₹750 crore) appear inconsistent with actual import volumes, pointing to data and policy blind spots.

• Bridging the "assembly trap" would require deeper investment in component manufacturing, critical-mineral processing, and R&D rather than only final-stage assembly incentives.

UPSC Prelims Pointers

• The Production-Linked Incentive (PLI) scheme offers financial incentives to boost domestic manufacturing and exports across specified sectors, including electronics.

• Neodymium-Iron-Boron (NdFeB) magnets are "permanent magnets" critical for electric-vehicle motors, wind turbines, and electronics; China dominates their global supply chain.

• India's trade deficit is the excess of the value of imports over exports in merchandise trade.

• "Make in India," launched in 2014, aims to boost domestic manufacturing and attract foreign investment.

13. RBI's Near-Zero Real Interest Rate Dilemma

Basic Concept

The "real interest rate" is the nominal policy interest rate (the repo rate, set by the Reserve Bank of India's Monetary Policy Committee) adjusted for inflation; it is a key indicator of how accommodative or tight monetary policy actually is. A real rate close to zero or negative can boost growth in the short term but risks fuelling inflationary pressures, discouraging financial savings, and embedding inflation expectations if left unaddressed for too long.

Core Context

With the repo rate at 5.25% and retail (CPI) inflation at 4.82%, India's real policy rate has narrowed to nearly zero, a situation compounded by elevated global crude prices (above $100/barrel amid West Asia tensions). Commentary suggests the RBI faces a choice between a timely, modest tightening (around 25 basis points) versus risking a delayed but sharper correction later if inflationary pressures build further.

Latest Developments

• A near-zero real rate can weaken household financial savings behaviour, as returns on bank deposits fail to meaningfully outpace inflation, potentially pushing savings toward other asset classes.

• Elevated crude prices are an "imported inflation" risk for India, given its heavy dependence on crude-oil imports, and interact directly with domestic monetary-policy choices.

• The RBI's Monetary Policy Committee (MPC) is mandated to keep CPI inflation within a target band, currently 4% with a tolerance of +/-2%, a framework that shapes how much room it has to delay rate action.

UPSC Prelims Pointers

• The Monetary Policy Committee (MPC) of the RBI has six members and decides the policy repo rate; it was constituted under the RBI Act, 1934 (as amended in 2016).

• India's flexible inflation-targeting framework sets a CPI inflation target of 4%, with a tolerance band of 2-6%.

• The repo rate is the rate at which the RBI lends short-term funds to commercial banks against government securities.

• "Real interest rate" = nominal interest rate minus the rate of inflation (approximately, per the Fisher equation).

14. Record Foreign Portfolio Investment (FPI) Outflows from Indian Equities

Basic Concept

Foreign Portfolio Investment (FPI) refers to investment by foreign entities in Indian financial assets such as listed equities and bonds, without seeking management control (unlike Foreign Direct Investment). FPI flows are highly sensitive to relative interest rates, currency movements, and global risk sentiment, making them more volatile than FDI and a closely tracked barometer of investor confidence in the Indian economy.

Core Context

Foreign Portfolio Investors withdrew about ₹20,974 crore from Indian equities in September, reversing inflows seen in July-August. Cumulative FPI outflows for 2026 have reached about ₹2.45 lakh crore, already exceeding the entire ₹1.66 lakh crore outflow recorded in 2025, driven by higher U.S. interest rates, elevated crude prices, and a weaker rupee.

Latest Developments

• Higher U.S. interest rates make dollar-denominated assets more attractive relative to emerging-market equities, prompting capital to flow out of markets like India's toward the U.S.

• A weaker rupee can itself trigger further FPI outflows in a self-reinforcing cycle, as foreign investors seek to avoid currency-translation losses on their India holdings.

• Sustained FPI outflows put downward pressure on equity indices and the rupee, and can complicate the RBI's monetary-policy calculus (linking this story to the real-interest-rate dilemma above).

UPSC Prelims Pointers

• FPI is regulated in India primarily under SEBI's FPI Regulations, distinct from FDI, which is governed by the FDI policy administered via the DPIIT and RBI's FEMA rules.

• FDI implies a lasting management interest (conventionally 10% or more equity stake), while FPI is typically portfolio-only investment.

• The Reserve Bank of India tracks FPI/FDI flows as part of the Balance of Payments' capital account.

• A depreciating rupee makes imports costlier and can widen the current account deficit if not offset by export gains.

15. Global Sulphur Price Surge Threatens India's Fertiliser Security

Basic Concept

Sulphur is a key raw material for producing sulphuric acid, which in turn is essential for manufacturing phosphatic fertilisers such as DAP (di-ammonium phosphate) and NPK complexes. India, a major consumer of phosphatic fertilisers to support its foodgrain production, imports most of its sulphur and phosphoric-acid requirements, making its fertiliser supply chain vulnerable to global commodity-price and geopolitical shocks.

Core Context

Global sulphur prices have roughly doubled to about $1,050-1,100 a tonne, driven by supply disruptions linked to geopolitical conflicts in major producing/exporting regions and rising demand from unconventional users such as electric-vehicle battery manufacturing. India consumes around 3.8-3.9 million tonnes of sulphur annually, most of it imported, putting cost pressure on the domestic fertiliser subsidy bill.

Latest Developments

• Higher input costs typically get absorbed either by higher government fertiliser-subsidy outgo (to keep retail prices stable for farmers under the Nutrient-Based Subsidy regime) or by farmers themselves through higher effective costs.

• Sulphur's growing use in lithium-ion battery-adjacent and EV-related applications is a relatively new demand driver competing with agriculture for a historically "by-product" commodity (sulphur is largely recovered from oil and gas refining).

• Diversifying sulphur and phosphate-rock sourcing (e.g., from Morocco, Jordan, and Gulf countries) and boosting domestic recovery from refineries are among the strategies being discussed to cushion India's exposure.

UPSC Prelims Pointers

• DAP (Di-Ammonium Phosphate) is one of India's most widely used phosphatic fertilisers.

• The Nutrient-Based Subsidy (NBS) scheme fixes subsidy on a per-nutrient (N, P, K, S) basis for fertilisers.

• Sulphur is mostly recovered as a by-product of petroleum refining and natural-gas processing globally.

• India is heavily import-dependent for both sulphur and rock phosphate, key fertiliser inputs.

16. Rising Wildlife Trafficking: Baby Orangutans Seized in Odisha

Basic Concept

Orangutans are great apes native only to the rainforests of Borneo and Sumatra in Southeast Asia, and are listed as Critically Endangered on the IUCN Red List, with international trade in them prohibited under CITES Appendix I. India is both a transit and destination point for illegal wildlife trade, governed domestically by the Wildlife (Protection) Act, 1972, and internationally bound by CITES obligations as a signatory.

Core Context

Authorities discovered five baby orangutans in Odisha, roughly 2,000 km from their native Borneo habitat, reviving concern over international wildlife-trafficking networks operating through India. The seizure has renewed discussion on how such trafficking is organised and sustained by demand.

Latest Developments

• A separately cited long-term study on parrot confiscations in Mexico, spanning 30 years of data, found that urban centres — not just biodiverse source habitats — are the real demand hubs driving global wildlife trafficking, a finding with direct relevance to India's own enforcement strategy.

• This reframes anti-trafficking strategy: enforcement focused only on forest/border checkpoints may be insufficient if urban demand (as exotic pets or status symbols) is not simultaneously tackled.

• India's own wildlife-trafficking hotspots for exotic/exported species increasingly mirror this global pattern, with metropolitan centres serving as both transit points and end markets.

UPSC Prelims Pointers

• Orangutans are native only to Borneo and Sumatra and are listed under CITES Appendix I (highest protection, commercial trade banned).

• The Wildlife (Protection) Act, 1972 is India's principal law for wildlife conservation, with species listed under different Schedules based on protection level.

• CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora), 1973, regulates international wildlife trade.

• India is a party to CITES and enforces it domestically through agencies like the Wildlife Crime Control Bureau (WCCB).

17. Antimicrobial Resistance Spreads Beyond ICUs: Kerala's KARS-Net Findings

Basic Concept

Antimicrobial Resistance (AMR) occurs when bacteria, viruses, fungi, and parasites evolve to resist medicines designed to kill them, making standard treatments ineffective and increasing the risk of disease spread, severe illness, and death. The WHO has flagged AMR as one of the top global public-health threats, and India runs surveillance networks under its National Action Plan on AMR to track resistance patterns across healthcare settings.

Core Context

Kerala's Antimicrobial Resistance Surveillance Network (KARS-Net) reports that drug resistance is now widespread across both hospital and community healthcare settings, not confined to intensive-care units as often assumed. The surveillance drew on 65,849 clinical isolates from 59 institutions, with E. coli and Klebsiella species dominating among resistant pathogens.

Latest Developments

• The finding that resistance has spread into primary/community care settings signals a shift in India's AMR crisis from a hospital-infection-control problem to a broader public-health challenge requiring community-level antibiotic stewardship.

• E. coli and Klebsiella pneumoniae are common Gram-negative bacteria responsible for urinary-tract, bloodstream, and respiratory infections, and their rising resistance narrows effective treatment options significantly.

• Kerala's KARS-Net model, being one of India's more granular state-level AMR surveillance systems, is being viewed as a template other states could adopt to strengthen the national AMR surveillance picture.

UPSC Prelims Pointers

• AMR is recognised by the WHO as one of the top ten global public-health threats facing humanity.

• India's National Action Plan on AMR (NAP-AMR) was launched in 2017 under a One Health approach spanning human health, animal husbandry, and environment.

• E. coli (Escherichia coli) and Klebsiella pneumoniae are Gram-negative bacteria frequently implicated in drug-resistant infections.

• "One Health" is an approach recognising the interconnection between human, animal, and environmental health in tackling issues like AMR.

18. Army's AASHVAST Labs to Screen Military Drones for Hidden Vulnerabilities

Basic Concept

Modern militaries increasingly rely on unmanned aerial systems (drones) for surveillance, reconnaissance, and strike roles, but the widespread use of imported components and firmware in such systems creates supply-chain security risks, including the possibility of hidden vulnerabilities, backdoors, or foreign-controlled kill-switches that could compromise a mission if triggered by an adversary. Ensuring indigenous verification of critical defence hardware and software is an increasingly important dimension of India's defence self-reliance (Atmanirbhar Bharat in defence) push.

Core Context

The Indian Army is establishing a network of six "AASHVAST" labs tasked with examining military drones for firmware vulnerabilities and foreign-sourced components, aiming to prevent mission compromise arising from compromised electronics embedded in unmanned systems.

Latest Developments

• Such labs would typically conduct reverse-engineering, firmware audits, and component-traceability checks to certify drones (whether indigenous or procured) as safe for operational deployment.

• The initiative reflects lessons drawn from global conflicts (including the Russia-Ukraine war) where drone warfare has become central, and where compromised or jammed/hijacked drones have had significant battlefield consequences.

• This effort complements India's broader push for indigenisation of drone components under schemes promoting domestic defence manufacturing and the government's periodic restrictions on import of foreign drones for security-sensitive applications.

UPSC Prelims Pointers

• "Atmanirbhar Bharat" in defence refers to India's push for self-reliance in defence production and reduced import dependence.

• Firmware refers to low-level software embedded in hardware devices that controls their basic functioning.

• Supply-chain security in defence electronics is a growing concern globally, given the risk of embedded vulnerabilities in imported components.

• The Indian Army, Navy, and Air Force have all been expanding indigenous drone and counter-drone capability development in recent years.

19. Practice MCQs

Practice MCQs

Q1. Consider the following statements regarding Tulu language:
1. Tulu belongs to the Indo-Aryan language family.
2. Tulu is currently included in the Eighth Schedule of the Constitution.
3. Tulu has traditionally been written in the Tigalari script.
Which of the statements given above is/are correct?

• (a) 1 and 2 only

• (b) 3 only

• (c) 2 and 3 only

• (d) 1, 2 and 3

Answer: (b) 3 only

Explanation: Tulu belongs to the Dravidian, not Indo-Aryan, language family, so Statement 1 is incorrect. It is not among the 22 languages currently listed in the Eighth Schedule, so Statement 2 is incorrect. It has traditionally been written in the Tigalari (Tulu) script, so Statement 3 is correct.

Q2. The Strait of Hormuz, sometimes seen in the news, connects which of the following?

• (a) The Persian Gulf and the Gulf of Oman

• (b) The Red Sea and the Mediterranean Sea

• (c) The Arabian Sea and the Bay of Bengal

• (d) The Black Sea and the Mediterranean Sea

Answer: (a) The Persian Gulf and the Gulf of Oman

Explanation: The Strait of Hormuz lies between Iran and Oman and connects the Persian Gulf to the Gulf of Oman (and onward to the Arabian Sea), making it a critical chokepoint for global oil trade, with roughly a fifth of world oil transiting through it.

Q3. Consider the following statements regarding Foreign Portfolio Investment (FPI):
1. FPI typically involves a controlling management stake in the invested entity, unlike Foreign Direct Investment (FDI).
2. FPI flows are generally regulated in India under SEBI's FPI Regulations.
3. A depreciating rupee can trigger further FPI outflows.
Which of the statements given above is/are correct?

• (a) 1 and 2 only

• (b) 2 and 3 only

• (c) 1 and 3 only

• (d) 1, 2 and 3

Answer: (b) 2 and 3 only

Explanation: FPI does NOT involve a controlling management stake — that is a feature of FDI — so Statement 1 is incorrect. FPI is regulated in India under SEBI's FPI Regulations, so Statement 2 is correct. A weakening rupee can indeed trigger further FPI outflows due to currency-translation losses for foreign investors, so Statement 3 is correct.

Q4. The Foreign Contribution (Regulation) Act (FCRA) requires that all foreign contributions received by a registered association in India be routed through a designated FCRA account maintained at which of the following?

• (a) Reserve Bank of India, Mumbai

• (b) State Bank of India, New Delhi Main Branch

• (c) NABARD, Mumbai

• (d) Any nationalised bank branch of the recipient's choice

Answer: (b) State Bank of India, New Delhi Main Branch

Explanation: Under FCRA rules, all foreign contributions must first be received into a specified FCRA account maintained at the State Bank of India's New Delhi Main Branch, before being transferred to the association's utilisation accounts.

Q5. Consider the following statements regarding the Special Intensive Revision (SIR) of electoral rolls:
1. It is conducted under powers vested in the Election Commission of India by Article 324 of the Constitution.
2. It involves only a summary revision without house-to-house verification.
3. Citizens whose names are deleted in the draft roll have no opportunity to have them restored.
Which of the statements given above is/are correct?

• (a) 1 only

• (b) 1 and 2 only

• (c) 2 and 3 only

• (d) 1, 2 and 3

Answer: (a) 1 only

Explanation: The ECI conducts electoral roll revisions, including SIR, under its Article 324 mandate, so Statement 1 is correct. SIR is a more rigorous house-to-house verification exercise, not a mere summary revision, so Statement 2 is incorrect. Citizens do get an opportunity to file claims and objections before the final roll is published, so Statement 3 is incorrect.

Q6. Which of the following best explains India's "assembly trap" in the context of its trade relationship with China, as recently discussed?

• (a) India exports more finished goods to China than it imports from China

• (b) India has become a large exporter of critical minerals such as neodymium to China

• (c) India's manufacturing growth (e.g., mobile phones) is concentrated at the assembly stage, while remaining structurally dependent on imported Chinese components

• (d) India has eliminated its trade deficit with China through import-substitution policies

Answer: (c) India's manufacturing growth (e.g., mobile phones) is concentrated at the assembly stage, while remaining structurally dependent on imported Chinese components

Explanation: The "assembly trap" refers to India's manufacturing success (such as in mobile phones) being concentrated at final assembly, while a large share of imports from China continue to be intermediate and capital goods, meaning genuine component-level self-reliance has not been achieved and the trade deficit with China has in fact widened.

Q7. Antimicrobial Resistance (AMR) surveillance in Kerala under the KARS-Net network has found that drug-resistant infections are:
1. Confined mostly to intensive care units (ICUs).
2. Dominated among pathogens by species such as E. coli and Klebsiella.
3. A concern recognised by the WHO as among the top global public-health threats.
Which of the statements given above is/are correct?

• (a) 1 and 2 only

• (b) 2 and 3 only

• (c) 1 and 3 only

• (d) 1, 2 and 3

Answer: (b) 2 and 3 only

Explanation: KARS-Net found resistance to be widespread across both hospital AND community settings, not confined to ICUs, so Statement 1 is incorrect. E. coli and Klebsiella were found to dominate among resistant pathogens, so Statement 2 is correct. The WHO has indeed flagged AMR as one of the top ten global public-health threats, so Statement 3 is correct.