01
Mobile Manufacturing Scheme: Context & Design
The new ₹62,500 crore scheme is a successor to the earlier PLI for smartphones. It is split into two tracks: Track A targets large manufacturers (minimum turnover ₹10,000 crore in FY26) with escalating sales thresholds (₹5,000 crore to ₹25,000 crore). Track B is for Indian brands, offering higher incentives for companies that retain IP, design, R&D, and management control in India. The baseline moves annually (previous year sales + 15%). This reflects a shift from assembly hub to building domestic brands.
02
RBI Forex Swap: Mechanism & Impact
The RBI introduced a special USD-rupee concessional swap facility on June 8, 2026, to attract foreign currency inflows and support the rupee. By August 21, it drew $72.85 billion, with FCNR(B) deposits contributing $65.397 billion, OFCBs $4.86 billion, and ECBs $2.591 billion. The facility was closed early on August 31 due to encouraging response. However, the cost to RBI is estimated at ~15% of the amount raised (~$10.5 billion on $70 billion). The swap helped stabilize the dollar-rupee at the 95-handle.
03
India-Mauritius Energy Partnership
India and Mauritius signed a five-year agreement under which Indian Oil Corporation will supply the island nation's entire import requirement of petrol, diesel, and aviation turbine fuel. This strengthens India's role as a key energy-security partner in the Indian Ocean, aligned with the SAGAR policy. Mauritius, with ~70% Indian-origin population, is a strategic neighbor. The Comprehensive Economic Cooperation and Partnership Agreement (CECPA) signed in 2021 is India's first trade agreement with an African country.
04
India-Bangladesh Tensions Over Extradition
Ties between India and Bangladesh remain strained after the ouster of Sheikh Hasina in August 2024. Bangladesh Prime Minister Tarique Rahman's visit to India is uncertain due to India's refusal to extradite Hasina, who faces a death sentence. External Affairs Minister Jaishankar emphasized 'mutual interests' and 'common ground'. The India-Bangladesh Extradition Treaty (2013) contains Article 6 which allows refusal for political offences. The Ganges Water Treaty (1996) renewal and Teesta water-sharing also remain unresolved.
05
E20 Fuel: Consumer Choice and Pricing Issues
India achieved 20% ethanol blending (E20) five years ahead of target, now standard nationwide. While ethanol blending reduces carbon emissions (~30% less than E10) and cuts fossil fuel imports, consumers face lower mileage without a tangible price benefit. The government has not offered differential pricing (e.g., cheaper E20 vs E10) to incentivize transition. At $70/barrel crude, E20 is costlier than pure petrol. The article argues that offering consumer choice and price advantage is key to public acceptance.
06
Unemployment and NEET Youth Data
NITI Aayog's report 'Reimagining Skilling for Viksit Bharat@2047' reveals 8.7 crore youth (15-29) are NEET (not in education, employment or training). Only 8.25% of graduates are employed in roles aligned with their qualifications. The article by Pulapre Balakrishnan argues that unemployment is not solely due to poor education; it is also linked to slowing aggregate demand, demonetisation, COVID, and declining capital formation. Real wages have stagnated, and consumption expenditure is impacted.
