7 February 2026, Questions & Answers

Explanation

The Monetary Policy Committee (MPC) is a statutory body constituted under the Reserve Bank of India Act, 1934. Its primary objective is to maintain price stability while keeping in mind the objective of growth, and it does so by fixing the benchmark interest rate (repo rate). The RBI's Central Board oversees general superintendence, while FSDC focuses on macro-prudential regulation.

Explanation

Statement 1 is correct: The article states the RBI had cut rates by a cumulative 125 bps in 2025. Statement 2 is correct: The advance estimate for FY26 GDP growth is 7.4%. Statement 3 is incorrect: The article mentions the trade deal is expected to provide a growth boost of around 0.2 percentage points, not 0.5.

Explanation

The article clearly states that exports to the US account for around 20% of India's exports. This is a crucial data point highlighting the significance of the bilateral trade relationship and the impact of US tariffs.

Explanation

The article explicitly states that the RBI's decision is supported by India's improving growth outlook and continuation of benign inflation. This forms the core rationale for pausing the rate-cut cycle and 'conserving policy ammunition'. Other options, like a weak rupee or fiscal slippage, are not mentioned as reasons for the pause.

Explanation

Piyush Goyal is the Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles. The tweet quoted in the article is from his official handle, announcing the framework.

Explanation

Statement 1 is incorrect because India secured concessions (like TRQ for auto parts, outcomes for pharma) on 'certain' items, not the complete removal of all Section 232 tariffs. Statement 2 is incorrect as the article explicitly states the Section 232 concession is NOT subject to the Supreme Court case. Statement 3 is correct as per the joint statement.

Explanation

The joint statement said India 'intends' to purchase $500 billion of U.S. energy products, aircraft, precious metals, technology, and coking coal over the next 5 years. Note the strategic use of the word 'intends', indicating it is not a legally binding commitment.

Explanation

The article states the Section 232 concession is significant because it is 'not subject to the ongoing US Supreme Court case' that could rule against the President's authority to impose such tariffs under IEEPA. This provides a degree of certainty and stability for Indian exporters in these sectors.

Explanation

As stated by RBI Deputy Governor Swaminathan J, the payout will be made from the surplus income accrued on the Deposit Education and Awareness Fund (DEAF). This fund also holds unclaimed deposits.

Explanation

Statement 1 is correct: Rat-hole mining involves narrow pits. Statement 2 is correct: The NGT banned it in 2014. Statement 3 is incorrect: The MMDR Act, 1957, is the central law governing all mines and minerals, including coal, across India. Its provisions apply nationwide, though state governments have certain roles in regulation.

Explanation

The RBI's Monetary Policy Committee revised the GDP growth projection for FY26 upwards to 7.4%, from its earlier estimate of 7.3%. This reflects optimism based on robust consumption and positive budgetary measures.

Explanation

Nayara Energy is significantly owned by Rosneft (a Russian state company) and is heavily reliant on Russian crude. Abruptly stopping imports could mean shutting down the refinery, causing economic and energy security issues. While other options present challenges, this is a direct and specific impediment highlighted in the article.

Explanation

The SHANTI Bill (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India) pertains to the nuclear energy sector, which is governed by the Department of Atomic Energy (DAE) under the Prime Minister's Office. The DAE is responsible for all nuclear power generation and research in India.

Explanation

Statement 1 is correct: The budget saw a 15.19% increase over FY 2025-26 Budget Estimates. Statement 2 is incorrect: The DRDO allocation increased to ₹29,100.25 crore from ₹26,816.82 crore, indicating a boost to indigenous R&D, not a reduction. Statement 3 is correct: The allocation accounts for 14.67% of total Central Government expenditure.

Explanation

The government has launched the Research Development Innovation (RDI) initiative with an outlay of ₹1 lakh crore. ₹76,000 crore is the outlay for the 2021 semiconductor policy, which is a different scheme mentioned in the same context.

Explanation

As stated by V.K. Saraswat, private sector participation is deemed critical to achieving India's ambitious target of 100 GW of nuclear power, which cannot be met by public sector efforts alone. The bill aims to leverage private investment and expertise for design, development, and manufacturing of nuclear power plants.

Explanation

RBI Deputy Governor Swaminathan J stated that the payout will be made from surplus income accrued on the Deposit Education and Awareness Fund. This fund, established under the Banking Regulation Act, also includes unclaimed deposits.

Explanation

Statement 1 is incorrect: The compensation cap is Rs 25,000, not Rs 50,000. Statement 2 is correct as per the article. Statement 3 is incorrect: The compensation will be paid from the RBI's Deposit Education and Awareness Fund, not entirely by the bank.

Explanation

The article clearly states: 'Close to 65 per cent of frauds involve amounts less than Rs 50,000'. This is a key data point highlighting the rationale for targeting small-value transactions.

Explanation

The core objective is consumer protection and building systemic trust. The RBI acknowledges that sophisticated social engineering can trick users, and a blanket denial of compensation erodes confidence in digital finance. The move aims to strike a balance, not shift all liability to banks.

Explanation

The news article explicitly states that the interim framework is linked to the broader U.S.-India Bilateral Trade Agreement (BTA) talks launched on February 13, 2025. CEPA and FTA are types of agreements, but the specific term used is BTA.

Explanation

Statement 1 is incorrect: India agreed to cut duties on a 'wide range' of US farm products, not 'all'. Statement 2 is incorrect: The 18% reciprocal tariff applies to sectors like textiles and leather, not 'all' goods. Statement 3 is correct as per the article.

Explanation

The article clearly states: 'India intends to purchase $500 billion worth of U.S. goods over five years.' This is a key numerical commitment from the Indian side.

Explanation

The article's core theme is economic cooperation for supply chain resilience. It states the deal aims at 'supply chain resilience' and that both countries seek to 'realign global supply chains'. The other options are not mentioned and are beyond the scope of a trade framework.

Explanation

The Ministry of Women and Child Development (WCD) is the nodal agency for promoting Gender Budgeting in India. It issues guidelines and works with other ministries to integrate a gender perspective into their budgets, although the Department of Economic Affairs (Ministry of Finance) also plays a role in the overall process.

Explanation

Statement 1 is correct: The Gender Budget was first pioneered in 2008-09. Statement 2 is incorrect: It was pioneered by then Deputy Chief Minister Sushil Kumar Modi, not CM Nitish Kumar. Statement 3 is correct: In 2023-24, the Gender Budget was Rs 75,691 crore, which was 30.03% of the total budget.

Explanation

The article explicitly states: "Rs 2.5 lakh crore, or 20 percent of the total Budget — that’s how much the Bihar government has spent over the last five years under its Gender Budget." The other figures are close distractors.

Explanation

The article directly links the spending to creating a "caste-neutral constituency of women" and states the Dashhazari scheme "is considered to have played a major role in the NDA’s landslide victory." This highlights the political and electoral implications of such targeted welfare schemes.

Explanation

The Registrar General of India (RGI), under the Ministry of Home Affairs, is responsible for the NPR. While the Office of the Registrar General & Census Commissioner is the same office, the specific nodal authority for NPR is the RGI. NSO and MoSPI are involved in other statistical surveys.

Explanation

Statement 1 is correct: The order suspends NPR from 20 December 2019, the day CAA implementation began (not the passage date, which was 11 Dec 2019 - a trap). Statement 2 is incorrect: The budget allocation is for "schemes of RGI, including NPR and expenditure on Census," not separate funds. Statement 3 is correct: Kerala was the first state assembly to pass a resolution against CAA.

Explanation

The article clearly states that Rs 6,000 crore has been allocated under 'Census, Survey and Statistics/Registrar General of India (RGI)'. This includes provisions for the office of the RGI and various schemes, including NPR and Census 2027. Rs 218 crore out of this is capital expenditure.

Explanation

While 'Citizenship' is in the Union List (I), 'Population' is in the Concurrent List (III). Laws made by Parliament on Concurrent subjects are executed by the states (except when expressly directed). Therefore, state cooperation is crucial for field-level implementation of exercises like NPR, giving states leverage to resist.

Explanation

The Passports Act, 1967 is the specific legislation governing the issuance and revocation of Indian passports. Section 10(3) of this Act provides the legal basis for revoking a passport if the holder is likely to engage in activities prejudicial to the sovereignty and integrity of India.

Explanation

Statement 1 is incorrect: The court specifically stated there are exceptions to natural justice, like national security. Statement 2 is correct: The court upheld the revocation based on the secret intelligence input. Statement 3 is incorrect: The petition claimed violation of Articles 14, 19, and 21, but the court dismissed it, implicitly accepting an infringement justified by national security.

Explanation

The article clearly states the passport was revoked in October 2019. August 2018 is when his previous passport expired. December 2019 is when a clarification order was issued. January 2026 is when the judgment was delivered.

Explanation

The core ruling of the judgment is that the principle of audi alteram partem (right to a hearing), a facet of natural justice, can be dispensed with when matters of national security, public interest, and confidentiality are involved. This significantly expands executive discretion in security matters.

Explanation

The IndiaAI Mission is a flagship initiative under the Ministry of Electronics and Information Technology (MeitY). It aims to strengthen the AI innovation ecosystem through funding, infrastructure (like GPU access), and strategic programs.

Explanation

Statement 1 is correct: The agreement helps India avoid stringent export controls like those on China. Statement 2 is incorrect: The tax holiday is for foreign companies (not domestic) and lasts until 2047 (not 2035). Statement 3 is correct: The article mentions the $100 billion bilateral electronics trade projection.

Explanation

The allocation was halved to Rs 1,000 crore for 2026-27 from Rs 2,000 crore in the previous fiscal year. The total outlay for the mission remains Rs 10,370 crore. Examiners often test this specific reduction figure.

Explanation

India lacks domestic GPU production. GPUs are critical hardware for training and running AI models. The core objective is to bridge the 'compute deficit' for its growing AI ecosystem (startups and researchers) by securing unimpeded access to imports, thereby fueling innovation and economic growth in the AI sector.

Explanation

The Ministry of Commerce and Industry is the nodal agency for formulating India's foreign trade policy and conducting bilateral/multilateral trade negotiations, including interim agreements like this one.

Explanation

Statement 1 is correct as per the joint statement. Statement 2 is incorrect because while Argentina is India's largest soybean oil supplier, Brazil is the world's largest soybean producer. Statement 3 is correct as DDGs are indeed a protein-rich by-product of grain-based ethanol production.

Explanation

The article clearly states that the US accounted for just 2.2 per cent (or 1.06 lakh tonnes) of India’s total soybean oil imports in 2024-25. 6.3% is the share of soybean oil in India's total import bill, a common distractor.

Explanation

Analysts like Ajay Srivastava warned that tariff cuts on US fresh fruits and soybean oil are likely to hurt Indian farmers and could face opposition from farmer groups, highlighting the tension between trade liberalization and domestic agricultural protection.

Explanation

The article clearly states the initiative is launched by the Maharashtra government's Revenue Department. The high-level committee is also chaired by the Additional Chief Secretary (Revenue). Land records and surveys are a state subject under the Revenue Department.

Explanation

Statement 1 and 2 are correct as per the article. Statement 3 is incorrect because the first land survey was conducted between 1890 and 1930, not 1901-1947. This is a classic trap testing attention to historical dates.

Explanation

The article specifies the exact figure: 'around 2 crore 12 lakh 76 thousand 499' new land sub-divisions. The closest approximation is 'About 2.12 crore'. Other options are distractors.

Explanation

The core objective, as stated, is to use ULPIN as a single reference point for all land-related information (like Aadhaar) and to reduce land disputes by reconciling maps with records. While other options may be indirect benefits, the primary and direct outcome is the creation of a unified, accurate digital land database.

Explanation

The Supreme Court's Prakash Singh judgment and the subsequent directives specifically govern the appointment process and tenure of the Director General of Police (DGP), the head of the state police force, to ensure its autonomy.

Explanation

Statement 1 is incorrect: The SC empowered UPSC to remind states and file for accountability, not to directly appoint. Statement 2 is correct as per the Prakash Singh guidelines. Statement 3 is incorrect: The Punjab Police (Amendment) Bill, 2023, is still pending presidential assent; it is not an Act yet.

Explanation

The article clearly states that Gaurav Yadav has been serving as officiating DGP for over three and a half years, having started on July 5, 2022. This is a key data point highlighting the violation of the six-month limit.

Explanation

The core implication is the shift in the UPSC's role from merely preparing a panel to actively reminding states and initiating contempt proceedings for non-compliance, thereby strengthening the enforcement mechanism of the Prakash Singh judgment.

Explanation

The Income Tax Department, which functions under the Department of Revenue in the Ministry of Finance, is responsible for administering direct tax laws including the Income Tax Act. The Central Board of Direct Taxes (CBDT) provides policy inputs to this department.

Explanation

Statement 1 is correct as per the article. Statement 2 is incorrect because the draft rules REDUCE the number from 511 (1962) to 333 (2026). Statement 3 is correct as the article mentions smart forms for auto-reconciliation and pre-fill.

Explanation

The article clearly states that the Income-tax Rules, 1962, had 399 forms, while the draft Income-tax Rules, 2026, contain 190 forms. 333 is the number of rules in the new draft, making it a close distractor.

Explanation

The article's core theme is simplification and ease of compliance. It explicitly states the Act aims to 'simplify the provisions and reduce compliance burden for ease of understanding and make it taxpayer-friendly.' The other options are not mentioned or are incorrect.

Explanation

The IndiaAI Mission is a flagship initiative under the Ministry of Electronics and Information Technology (MeitY) aimed at strengthening the AI ecosystem in India through funding for compute infrastructure, datasets, and startups.

Explanation

Statement 1 is correct: The article states the summit is coming to the Global South for the first time. Statement 2 is incorrect: India's theme is 'People, Planet, and Progress', focusing on practical solutions, not catastrophic risks (which was the focus of the Bletchley Summit). Statement 3 is correct: The government will launch indigenous AI language models during the summit under the IndiaAI Mission.

Explanation

The article explicitly mentions the IndiaAI Mission has an outlay of Rs 10,370 crore. This is a precise data point that can be tested in Prelims. The other figures are distractors.

Explanation

The article identifies the absence of domestically available hardware (GPUs) as a key disadvantage for India in the AI race, preventing true self-reliance. While other options may be challenges, the article specifically emphasizes the hardware and compute power issue.

Explanation

The executive order authorizes actions under the International Emergency Economic Powers Act (IEEPA). IEEPA grants the U.S. President authority to regulate international commerce during a declared national emergency.

Explanation

Statement 1 is incorrect: The duty was imposed over India's purchase of Russian crude oil, not defence purchases. Statement 2 is correct as per the effective date. Statement 3 is incorrect: The commitment is for a 10-year defence framework, not 5 years.

Explanation

The U.S. removed the additional ad valorem rate of duty of 25% imposed pursuant to Executive Order 14329. This is a precise data point from the news article.

Explanation

The tariff relief is directly conditional on India's commitment to stop importing Russian oil and its agreement to a framework for expanding defence cooperation over the next 10 years. The order explicitly states tariffs can be reimposed if Russian oil imports resume.

Explanation

The article explicitly states that MEA spokesperson Randhir Jaiswal reiterated India's stated position on energy security. While other ministries handle related aspects, the official diplomatic response to an international development like a US Executive Order falls under the purview of the Ministry of External Affairs.

Explanation

Statement 1 is correct as per the article dates. Statement 2 is incorrect; the rollback is conditional (on stopping Russian oil imports, etc.) and the Executive Order is separate from the joint statement, which made no mention of Russian oil. Statement 3 is correct as the article mentions India committed to a 10-year defence cooperation framework.

Explanation

The article states: "Trade data showed that the US's share in India's oil imports has surged to 7.48% between April and October this year." Option A (4.43%) was the share during the comparable period last year. Option C (32.18%) is Russia's current share, and D (37.88%) is Russia's previous share.

Explanation

The core challenge is the tension between India's need for affordable, secure energy (heavily reliant on discounted Russian crude) and the geopolitical pressure from the US to align against Russia. The article discusses technical hurdles (refinery compatibility, cost) but the fundamental policy dilemma is this balance. The other options are secondary or not the primary challenge.

Explanation

As per convention, the Finance Minister tables the Finance Commission report in Parliament. The Finance Commission submits its report to the President, but it is laid before each House of Parliament by the Union Finance Minister.

Explanation

Statement 1 is correct (₹3.5 lakh crore). Statement 2 is correct (230% increase from ₹1.5 lakh crore). Statement 3 is incorrect because over 60% were 'basic grants', which include both 'tied' and 'untied' components, not solely untied grants.

Explanation

The 16th Finance Commission recommended ₹3.5 lakh crore for Urban Local Governments (ULGs). ₹1.5 lakh crore was the allocation by the preceding 15th Finance Commission. The other figures are distractors.

Explanation

The core objective is to empower the third tier of government (ULBs) financially, as envisioned by the 74th Amendment, to enable them to provide better basic services like water, sanitation, and infrastructure, thereby improving urban governance.

Explanation

The article explicitly states the framework builds on trade talks launched by US President Donald Trump and Prime Minister Narendra Modi in February 2025. This tests static recall of key personalities and dates associated with the initiative.

Explanation

Statement 1 is correct as per India's commitments. Statement 2 is incorrect; the US will apply an 18% reciprocal tariff on Indian textiles and clothing, not remove all tariffs. Statement 3 is correct as India agreed to tackle NTBs, with talks on standards to be concluded within six months.

Explanation

The article clearly states: "India plans to buy $500 billion worth of US goods over five years." This tests precise recall of a key quantitative commitment made in the agreement.

Explanation

The article mentions that strategic concerns, including competition with China and supply chain shifts, have given the talks fresh momentum. The deal aims to deepen cooperation on innovation, supply chains, and economic security, aligning with this broader geostrategic objective.

Explanation

The article states the 'Resilience Roadmap for Permanent Magnets' was released in August 2025 by the German Federal Ministry for Economic Affairs and Climate Action (BMWK) and the European wind industry. This is a key nodal body for Germany's economic and climate policy.

Explanation

Statement 1 is incorrect: India has the third-largest 'inferred' deposits (6.9 million tonnes), not proven reserves. Output is less than 1% of global capacity. Statement 2 is correct as per the article. Statement 3 is incorrect: Most deposits are located around coastal areas in the form of monazite sands.

Explanation

The Cabinet approved funding with the objective of producing 6000 metric tonnes per annum of REPM till 2031. This is a precise data point crucial for prelims. Other options are close distractors.

Explanation

The core objective is de-risking and building supply chain resilience. Both countries import over 90% of their permanent magnets from China, creating strategic vulnerability. The partnership aims at collaborative exploration, R&D, processing, and recycling to diversify sources.