News1 :PM Modi Defends Trade Deals as ‘Position of Strength’ After Opposition Attack; Urges Private Sector to Seize Opportunity
In a wide-ranging interview to PTI, Prime Minister Narendra Modi asserted that India’s recent spate of trade agreements, including with the European Union and the United States, were negotiated from a “position of strength” born out of preparation and inspiration, not compulsion. He framed the pacts as tools to integrate MSMEs into global value chains and urged the private sector to respond decisively to the policy framework.
1. Preliminary Facts (For Mains Answer Introduction)
- Core Assertion: PM Modi defended India’s recent trade breakthroughs (EU FTA concluded January 2026, US tariff breakthrough February 2026) as outcomes of a “position of strength,” contrasting his government’s record with the UPA’s “uncertainty and inconsistency” which left India unable to negotiate from confidence .
- MSME Focus: Modi emphasized that FTAs are “designed to reduce non-tariff barriers and expand market access for MSMEs” in labour-intensive sectors such as textiles, leather, processed food, engineering goods, chemicals, handicrafts, and gems and jewellery. He stated Indian MSMEs are “more export-ready than before” .
- Private Sector Challenge: The Prime Minister called on the corporate sector to respond decisively: “Policy can only create the enabling framework. The next phase of transformation requires a decisive response from the private sector… durable competitiveness must rest on innovation, efficiency and scale” .
- Defence & Reforms: Modi linked the record ₹7.85 lakh crore defence budget to lessons from Operation Sindoor, asserting India must be “prepared at all times.” He outlined three reform priorities: continued structural reforms, deepening innovation, and simplifying governance .
- Context: The interview came as Parliament remained in recess after the first part of the Budget Session where the government faced opposition attack on trade deal terms.
Prelims 360
🇮🇳 India–US Trade Relations
📌 Nature of Arrangement
- No full Free Trade Agreement (FTA) yet.
- Ongoing negotiations for a Bilateral Trade Agreement (BTA).
- Focus areas:
- Tariff rationalisation
- Market access
- Digital trade
- Supply chain resilience
- Critical & emerging technologies
📌 Key Features
- Reduction in reciprocal tariffs on selected goods.
- Cooperation in:
- Semiconductor supply chains
- Clean energy
- Defence manufacturing
- Emphasis on “China+1” diversification strategy.
📌 Strategic Significance
- US is India’s largest trading partner.
- Enhances:
- Export competitiveness
- Technology transfer
- Integration into global value chains (GVCs)
🇮🇳 India–EU Trade Agreement
📌 Agreement Status
- India negotiating a Free Trade Agreement (FTA) with the European Union.
- Talks resumed in 2022 after long suspension.
- Also negotiating:
- Investment Protection Agreement
- Geographical Indications (GI) protection
📌 Key Focus Areas
- Reduction of tariffs on:
- Textiles
- Leather
- Automobiles
- Pharmaceuticals
- Addressing:
- Carbon Border Adjustment Mechanism (CBAM)
- Sustainability standards
- Data protection norms
MSME (Micro, Small and Medium Enterprises) – UPSC Prelims Notes
📌 Legal Basis
- Governed by the Micro, Small and Medium Enterprises Development Act.
- Administered by the Ministry of Micro, Small and Medium Enterprises.
📌 Revised Definition (2020 onwards)
👉 Based on Investment + Turnover (both criteria must be satisfied).
| Category | Investment Limit | Turnover Limit |
| Micro | ≤ ₹1 crore | ≤ ₹5 crore |
| Small | ≤ ₹10 crore | ≤ ₹50 crore |
| Medium | ≤ ₹50 crore | ≤ ₹250 crore |
🔹 Applies to both manufacturing and services (earlier separate).
📌 Key Features
- Registration through Udyam Portal (Udyam Registration).
- Composite criteria (investment + turnover).
- Export turnover excluded while calculating turnover.
📌 Importance in Indian Economy
- Contributes ~30% to GDP.
- Around 45% of total exports.
- Major source of employment after agriculture.
- Promotes:
- Inclusive growth
- Regional balance
- Entrepreneurship
NEWS 2:Cotton Farmers Erupt Against Goyal’s U.S. Import Remarks, Warn of Price Crash and ‘Surrender’ to U.S. Imperialism
A wave of protest has swept across India’s cotton belt following Union Commerce Minister Piyush Goyal’s statement that India will match Bangladesh’s zero-tariff benefit on textile exports to the U.S., conditional on importing American cotton. Farmer bodies, including the Samyukt Kisan Morcha (SKM) and All India Kisan Sabha (AIKS), have denounced the move as “anti-farmer,” warning of collapsing domestic prices, intensifying indebtedness, and a “blueprint of economic colonisation.”
1. Preliminary Facts (For Mains Answer Introduction)
- Core Controversy: Union Commerce Minister Piyush Goyal announced that India will receive the same concession as Bangladesh in the recent U.S. trade deal: zero reciprocal tariffs on textile exports if Indian manufacturers use U.S.-origin cotton [source article]. Farmer organisations across Punjab, Gujarat, and other cotton-growing states have launched protests against this condition.
- Farmer Bodies’ Condemnation:
- Samyukt Kisan Morcha (SKM): Called Goyal’s statement a “blueprint of economic colonisation,” proving FTAs are “capitulation before U.S. Imperialism.” It highlighted that zero-tariff imports will devastate domestic cotton prices, noting that MSP should have been ₹10,075/quintal (per M.S. Swaminathan formula) but is fixed at only ₹7,710/quintal .
- All India Kisan Sabha (AIKS): Termed the statement “anti-farmer and atrocious,” warning of “intensifying indebtedness as well as greater peasant suicides” .
- Data Points Cited:
- Cotton Imports Surge: U.S. cotton imports surged 95.5% from $199.30 million (Jan-Nov 2024) to $377.90 million (Jan-Nov 2025) .
- Production Comparison: India’s 2025-26 cotton production is estimated at 29.22 million bales, roughly double the U.S. 2024-25 production of 14.41 million bales .
- Record Imports 2024-25: India’s total cotton imports hit a record 4.13 million bales (₹11,989 crore) in 2024-25, nearly three times the previous year’s volume, with the U.S. as the biggest contributor .
- Political Battle: The controversy has sparked a fierce exchange, with Rahul Gandhi attacking the deal as “anti-farmer” and “cheating India’s cotton farmers,” while Goyal dismissed him as a “drama artiste perpetrating lies” and defended the deal’s benefits for farmers .
Prelims 360
Cotton Production in India – UPSC Prelims Notes
📌 Basic Facts
- India is among the largest cotton producers in the world.
- Also one of the largest consumers and exporters.
- Cotton is a Kharif crop.
- Requires 6–8 months of frost-free climate.
🌡️ Agro-Climatic Conditions
| Factor | Requirement |
| Temperature | 21°C–30°C |
| Rainfall | 50–100 cm |
| Soil | Well-drained black cotton soil (Regur) |
| Climate | Warm with dry weather at maturity |
👉 Excess rainfall at picking stage reduces quality.
🗺️ Geographical Extent (Major Cotton Belts)
India’s cotton cultivation is divided into 3 major zones:
1️⃣ Northern Zone
States:
- Punjab
- Haryana
- Rajasthan
🔹 Irrigation-dependent
🔹 Long-staple cotton
🔹 Smaller area but high productivity
2️⃣ Central Zone (Largest Area)
States:
- Maharashtra
- Gujarat
- Madhya Pradesh
🔹 Largest cotton-producing belt
🔹 Black soil (Deccan Plateau)
🔹 Mostly rain-fed
🔹 Gujarat is often the leading producer
3️⃣ Southern Zone
States:
- Telangana
- Andhra Pradesh
- Karnataka
- Tamil Nadu
🔹 Produces long & extra-long staple cotton
🔹 Mixed irrigation and rain-fed
🧵 Types of Cotton in India
- Short staple
- Medium staple
- Long staple
- Extra-long staple (ELS)
👉 ELS used for high-quality textile exports.
🧬 Bt Cotton
- Genetically modified cotton resistant to bollworm.
- Introduced in India in 2002.
- Covers majority of cotton cultivation area.
News 3:India Launches AI Impact Summit 2026 with ‘Human-Centric’ Focus,
Prime Minister Narendra Modi inaugurated the India AI Impact Expo 2026 on Monday, kicking off a five-day global summit focused on equitable access to AI resources and a “human-centric” approach. The event, the first AI Safety Summit hosted in the Global South, brings together leaders from nearly 20 countries and tech CEOs,
1. Preliminary Facts (For Mains Answer Introduction)
- Event Launch: PM Modi inaugurated the India AI Impact Expo 2026 at Bharat Mandapam, New Delhi, on February 16, marking the start of a five-day summit (Feb 16-20) .
- Global Participation: The summit hosts representatives from nearly 100 countries, with leaders from ~20 countries including French President Emmanuel Macron, Brazil President Lula da Silva, and the Crown Princes of UAE and Liechtenstein. UN Secretary-General Antonio Guterres also attends .
- Tech Leaders: Key industry figures include Sundar Pichai (Google), Sam Altman (OpenAI), Demis Hassabis (DeepMind), Dario Amodei (Anthropic), and Brad Smith (Microsoft) . NVIDIA CEO Jensen Huang pulled out citing “unforeseen circumstances” .
- India’s Positioning: Officials emphasized India is championing a “human-centric” approach and equitable access to AI resources, not just regulatory frameworks, as the first Global South host of an AI summit .
Prelims 360
What is Artificial Intelligence (AI)?
Artificial Intelligence (AI) refers to the ability of machines or computer systems to perform tasks that normally require human intelligence.
Coined in 1956 at the Dartmouth Conference by computer scientist John McCarthy.
Evolution of AI
1️⃣ Early AI (1950s–1970s) – Rule-Based Systems
- Based on logic and symbolic reasoning.
- Example: Expert systems.
- Limitation: No learning ability.
2️⃣ AI Winter (1970s & late 1980s)
- Reduced funding due to poor results.
- Hardware and data limitations.
3️⃣ Machine Learning Era (1990s–2000s)
- Shift from rule-based to data-driven systems.
- Algorithms learn patterns from data.
- Boost due to:
- Big Data
- Internet expansion
- Better computing power
4️⃣ Deep Learning Revolution (2010 onwards)
- Neural networks with multiple layers.
- Breakthroughs in:
- Image recognition
- Speech processing
- Natural language processing (NLP)
5️⃣ Generative AI Era (2020s)
- AI that generates:
- Text
- Images
- Audio
- Code
- Powered by Large Language Models (LLMs).
🧠 Types of AI (Based on Capability)
1️⃣ Narrow AI (Weak AI)
- Performs specific tasks.
- Most AI today falls in this category.
- Examples:
- Voice assistants
- Recommendation systems
- Self-driving features
2️⃣ General AI (Strong AI)
- Can perform any intellectual task like a human.
- Still theoretical (not achieved yet).
3️⃣ Super AI
- Surpasses human intelligence.
- Hypothetical stage.
⚙️ Types of AI (Based on Functionality)
1️⃣ Reactive Machines
- No memory.
- Respond only to current input.
2️⃣ Limited Memory AI
- Uses past data for decision-making.
- Example: Self-driving cars.
3️⃣ Theory of Mind AI
- Would understand emotions & beliefs.
- Not yet developed.
4️⃣ Self-Aware AI
- Conscious machines.
- Purely hypothetical.
News 4 : Herath in Kashmir: Displaced Pandits Celebrate as Muslims Recall Fading Bonds of Brotherhood
On the occasion of Herath (Maha Shivaratri), displaced Kashmiri Pandits celebrated the festival with fervor across India, while Muslims in Kashmir remembered the shared traditions and cultural exchanges that once united communities before the 1990s conflict and subsequent Pandit exodus.
1. Preliminary Facts (For Mains Answer Introduction)
- Festival Observed: Herath, the Kashmiri name for Shivaratri, was celebrated on Sunday, February 15, 2026 . Unlike celebrations elsewhere, Kashmiri Pandits traditionally prepare mutton and fish dishes and exchange walnuts with neighbors.
- Dual Narrative: Displaced Kashmiri Pandits celebrated across their new homes, while Muslims in Kashmir recalled memories of shared traditions now faded after 36 years of conflict.
- Shared Memories: Prominent figures shared personal stories. Former J&K Minister Haseeb Drabu wrote about reviving the tradition of sharing walnuts. Photojournalist Javed Dar recalled attending a Pandit friend’s Herath feast after 32 years.
- Temple Gatherings: Pandits who remained in Kashmir thronged temples in Srinagar, including Hanuman Temple, Sharika Devi Temple, and Shankaracharya Temple, to offer prayers.
- Leadership Greetings: Top J&K leaders—including Chief Minister Omar Abdullah, PDP leader Mehbooba Mufti, and chief cleric Mirwaiz Umar Farooq—greeted the community, emphasizing peace, harmony, and the shared cultural ethos of Kashmir .
News 5:ISRO Rocket Debris with National Emblem Washes Ashore in Maldives, Raising Ocean Drift Concerns
A large piece of payload fairing debris bearing the ISRO logo and Indian national emblem has been discovered on an uninhabited island near L. Kunahandhoo in the Maldives’ Laamu Atoll. Found by a local fisherman on February 12, 2026, the fragment is believed to be from ISRO’s LVM3-M6 mission launched in December 2025, marking the second such recovery after similar debris appeared in Sri Lanka last year.
1. Preliminary Facts (For Mains Answer Introduction)
- Discovery: A curved white panel, identified as a payload fairing (PLF) fragment, was found in the lagoon of an uninhabited island near L. Kunahandhoo, Laamu Atoll, Maldives, on February 12, 2026 by a local fisherman .
- Markings: The debris prominently displays the ISRO logo in blue and the Indian national emblem, with markings indicating the rocket originated in 2025 .
- Suspected Origin: Spaceflight tracking website indianspaceflight.in suggests the debris is likely from the LVM3-M6 mission launched on December 19, 2025, which deployed the BlueBird Block-2 satellite for AST SpaceMobile, USA .
- Previous Incident: This follows a similar recovery on December 28, 2025, in Trincomalee, Sri Lanka, also believed to be from the same mission .
- Official Response: Local authorities (Kunahandhoo Council) and Maldives Police inspected the debris. The Maldives National Defence Force (MNDF) has been informed and is expected to take possession for analysis. ISRO has not yet officially confirmed the origin .
EDITORIAL 360
Building Trust in AI in Asia: A Call for a Common Framework as Diverse National Agendas Emerge
As AI adoption accelerates unevenly across Asia, a common framework to measure and strengthen trust in AI ecosystems is urgently needed. Drawing on diverse national policies—from India’s techno-legal governance to South Korea’s chip dominance and Singapore’s pace-setter ambitions—the author argues for a regionally grounded yet globally interoperable framework built on trusted datasets, resilient infrastructure, proportionate governance, and robust cybersecurity.
1. Preliminary Facts (For Mains Answer Introduction)
India’s Opportunity: The India AI Impact Summit (Feb 16-20, 2026) offers a platform to advance a shared Asian framework measuring trust in AI ecosystems .
Core Thesis: Artificial Intelligence’s benefits will only be realized if AI systems are trusted by users, developers, regulators, and society. Currently, decisions about safety, bias, and accountability are often made far from affected communities .
Regional Challenge: AI ecosystems are transnational—global data flows, interdependent hardware supply chains, and absent common cybersecurity practices. For developing countries in South/Southeast Asia, this risks becoming passive consumers of AI systems over which they exercise little influence .
Diverse National Agendas: The author surveys key Asian approaches:
- South Korea : Retaining memory chip dominance in the AI supply chain .
- Singapore: Aiming to become the “pace-setter” for AI governance .
- China: Leading global governance efforts while respecting sovereign control .
- India: Upskilling IT workforce, leveraging digital market, anchored in techno-legal solutions .
Nepal: Positioning as provider of energy-efficient compute infrastructure .
Common Principle: Amid diversity, all emphasize building trust. India’s AI Governance Guidelines (Nov 2025), South Korea’s AI Basic Act (Jan 2026), and UN Secretary-General’s AI Advisory Body all anchor on trust .