News 1: Petrol, Diesel Excise Duty Cut; Prices Won’t Change
Preliminary Facts (For Mains Answer Introduction)
- Duty Reduction: The Union government on Thursday reduced the special additional excise duty on petrol and diesel by ₹10 a litre each . This effectively brings duty on diesel to zero and on petrol to ₹3 a litre .
- No Price Cut for Consumers: The duty reduction will not translate into lower fuel prices at the pump. Instead, the government stated the move aims to reduce the under-recoveries being absorbed by public sector oil marketing companies (OMCs) due to high global oil prices .
- Fiscal Impact: The duty cut is expected to cost the exchequer ₹7,000 crore over the next 15 days . However, the government simultaneously hiked export duties on diesel (by ₹21.5 a litre) and ATF (by ₹29.5 a litre), expected to add ₹1,500 crore, bringing the net revenue impact to ₹5,500 crore over 15 days .
- OMC Under-Recoveries: According to the Ministry, OMCs face under-recoveries of approximately ₹26 for every litre of petrol and ₹81.90 a litre of diesel , totalling about ₹2,400 crore per day being absorbed by public sector OMCs .
- Private Sector Pass-Through: Privately-owned refiner Nayara Energy increased petrol prices by ₹3 a litre and diesel by ₹5 a litre , citing “unprecedented challenges” and fuel disruption .
- Government’s Stance: Union Petroleum Minister Hardeep Singh Puri dismissed rumours of a potential lockdown due to the fuel crisis as “completely false” .
Prelims 360
1. Taxes Initially Levied on OMCs (Companies)
These are legally imposed on producers/importers (OMCs/refineries):
(A) Excise Duty
- Levied by Union Govt on:
- Petrol
- Diesel
👉 Technically paid by OMCs (like Indian Oil Corporation, Bharat Petroleum)
📌 BUT:
- It is indirect tax → burden shifted to consumers
- Included in retail price
(B) Customs Duty
- Levied on import of:
- Crude Oil
👉 Paid by:
- OMCs / refiners importing crude
📌 Again:
- Cost passed on to consumers via fuel pricing
(C) Windfall Tax (SAED)
- A tax imposed on companies when they earn abnormal (windfall) profits due to external factors like:
- Surge in global crude prices
- Geopolitical events (wars, supply shocks)
👉 In India, it is implemented as Special Additional Excise Duty (SAED)
- Levied on:
- Domestic crude producers (e.g., ONGC)
- Export of petroleum products
👉 Paid by:
- Upstream companies / exporters
📌 Impact:
- May indirectly affect prices, but not directly visible to consumers
2. Taxes Directly Affecting Consumers (People)
These are collected at point of sale but legally imposed earlier:
(A) VAT (Value Added Tax)
- Levied by State Governments
👉 Paid by:
- Consumers at petrol pumps
📌 Key point:
- Though collected by dealers/OMCs, actual burden = final consumer
(B) Dealer Commission
- Not a tax, but:
- Included in price paid by consumers
3. Conceptual Understanding (Very Important)
👉 Almost ALL petroleum taxes are INDIRECT TAXES
Meaning:
- Levied on OMCs / producers
- Burden shifted to consumers
News 2: 5 Killed as Avalanche Strikes Zojila Pass
Preliminary Facts (For Mains Answer Introduction)
- Tragic Incident : Five persons were killed and as many injured after an avalanche hit the high-altitude Zojila Pass (3,580 metres) on Friday, which connects the Kashmir Valley with Ladakh. Two more persons are feared trapped .
- Location and Cause: The avalanche struck the Srinagar-Leh National Highway near Zero Point in the afternoon, apparently triggered by bright sunlight when several passenger vehicles were negotiating the snow-laden road .
- Impact: A huge volume of snow crashed down, burying vehicles. One vehicle was thrown off the road in the impact, and several vehicles were left stranded .
- Rescue Operations: Ladakh Lieutenant-Governor Vinai Kumar Saxena directed the Deputy Commissioner and SSP of Kargil to mobilise relief and rescue operations. Disaster relief forces and the Border Road Organisation (BRO) have been put on high alert .
- Official Responses: Union Minister Jitendra Singh expressed condolences and assured assistance. J&K Chief Minister Omar Abdullah also expressed deep sorrow .
Prelims 360
Highly Avalanche-Prone Passes (Very Important)
1. Zoji La
- Connects: Srinagar ↔ Leh
- Region: Ladakh
- ❗ One of the most avalanche-prone passes in India
- Heavy snowfall + steep slopes → frequent road closures
2. Rohtang Pass
- Connects: Manali ↔ Lahaul-Spiti
- ❗ Known for:
- Sudden snowstorms
- Avalanches in winter & early spring
3. Baralacha La
- On: Manali–Leh highway
- ❗ High altitude + heavy snow accumulation
- Avalanche risk during snowmelt season
4. Khardung La
- Near: Leh
- ❗ Extremely high altitude (~5,359 m)
- Snow buildup → avalanche risk
5. Chang La
- Route to Pangong Lake
- ❗ Frequent snow slides & avalanches in winter
🟠 Moderately Avalanche-Prone Passes
6. Nathu La
- Connects India–China (Tibet)
- ❗ Avalanches occur but less frequent than western Himalayas
7. Jelep La
- Eastern Himalayas
- ❗ Snowfall → occasional avalanches
🔵 Why Western Himalayas Are More Prone? (Concept)
👉 Regions like Jammu and Kashmir and Himachal Pradesh have:
- Heavy winter snowfall (Western Disturbances)
- Steep slopes
- Loose snow layers
➡️ Leads to frequent avalanches
News 3:Trade Deal with India Not Far-Off, but Still Has Gaps
Preliminary Facts (For Mains Answer Introduction)
- Interim Deal Status: A U.S. official has stated that India and the United States are “not that far off” from finalising an interim trade deal, but “some gaps remain” in negotiations .
- Key Gaps Identified:
- Pulses: India is seeking to safeguard its domestic market for pulses, while the U.S. wants greater market access .
- Staging of Tariff Reductions: The U.S. is seeking a sped-up phased reduction of tariffs .
- Political Sensitivity: Agriculture is deeply sensitive for both countries. Last month, the White House issued a ‘fact sheet’ claiming India would cut tariffs on “certain pulses,” leading to a political furore in India. The sheet was quietly reissued, omitting the reference to pulses .
- Special 301 Investigations: U.S. trade officials are currently focused on Special 301 investigations launched in March 2026 against multiple countries (including India) over excess manufacturing capacity and forced labour. These probes could enable additional tariffs on top of the 10% universal tariff .
- Section 122 Tariffs: The current 10% universal tariffs (applied from February 24) are under Section 122 of the Trade Act, limited to 150 days and capped at 15%. Trump had previously indicated he would raise the rate to 15%, but officials are uncertain whether this will happen .
- E-Commerce Divergence: India wants to end the moratorium on tariffs for e-commerce (software downloads, digital music, etc.), while the U.S. wants to make it permanent .
Prelims 360
Pulses Production in India
🔹 What are Pulses?
- Edible seeds of leguminous crops
- Rich in protein (20–25%)
- Improve soil fertility via Nitrogen Fixation
🔹 Major Pulses in India
- Gram (Chana) – largest share
- Tur/Arhar (Pigeon Pea)
- Urad (Black gram)
- Moong (Green gram)
- Lentil (Masur)
🔹 India’s Position
- 🇮🇳 Largest producer, consumer, and importer of pulses in the world
- Contributes ~25% of global production
🔹 Major Producing States
🌟 Top States
- Madhya Pradesh → “Pulse Bowl of India”
- Maharashtra
- Rajasthan
- Uttar Pradesh
- Karnataka
📌 MP alone contributes the largest share
🔹 Season-wise Production
1. Rabi Pulses (Major Share)
- Gram (Chana)
- Lentil
👉 Grown in winter → depend on residual soil moisture
2. Kharif Pulses
- Tur (Arhar)
- Moong
- Urad
👉 Rainfed crops
🔹 Agro-Climatic Requirements
- Temperature: 20–30°C
- Rainfall: 25–75 cm (low requirement)
- Soil: Well-drained loamy soil
📌 Mostly grown in rainfed/dryland areas
🔹 Key Features of Pulses Farming
✔ Mostly rainfed (low irrigation)
✔ Often grown as intercrop/mixed crop
✔ Improve soil fertility (nitrogen fixing)
✔ Lower yield compared to cereals
Why Pulses Are Crucial in India–US Trade Deal
1. 🇮🇳 India = Largest Consumer but Not Fully Self-Sufficient
- India is the world’s largest consumer of pulses
- Domestic production is unstable (rainfed, low productivity)
- Hence, India depends on imports to stabilize prices
📌 This creates a natural entry point for exporters like the US
2. 🇺🇸 US is a Major Exporter of Pulses
- The United States exports:
- Lentils
- Dry peas
- Chickpeas
📌 US farmers want:
- Stable and predictable access to Indian markets
3. India Uses Tariffs as a Policy Tool
India imposes:
- High import duties
- Quantitative restrictions
👉 Objective:
- Protect domestic farmers
- Control price crashes during bumper harvests
📌 Issue:
- US sees these as trade barriers
4. Conflict: Farmer Protection vs Market Access
India’s Concern:
- Cheap imports → hurt farmers in states like:
- Madhya Pradesh
- Maharashtra
US Concern:
- Wants lower tariffs & fewer restrictions
👉 Hence, pulses become a negotiation flashpoint
5. WTO & Trade Disputes Angle
- US has challenged India’s restrictions at the World Trade Organization
- Issue:
- India’s quantitative restrictions on pulses imports
📌 Makes pulses a legal + diplomatic issue
News 4 : Amid Conflict, India Sends Out Invites for Key BRICS Meetings
Preliminary Facts (For Mains Answer Introduction)
- BRICS Calendar: India, as the current Chair of BRICS, has sent out invitations for key meetings of the 10-nation grouping, including the BRICS Foreign Ministers’ Meeting in May 2026 and the 18th BRICS Summit in September 2026 (expected on September 9-10 in Delhi) .
- Membership: The BRICS grouping now includes Iran and the United Arab Emirates (UAE), both directly involved in the ongoing West Asia conflict .
- Consensus Challenge : Diplomats have acknowledged difficulties in forging a joint statement on the West Asia conflict, as the grouping includes countries on opposing sides of the conflict (Iran vs. UAE) .
- India’s Position: The Ministry of External Affairs (MEA) stated that while India has an “ongoing conversation” with BRICS members on the conflict, differing opinions have made consensus difficult .
- Historical Context: In June 2025, under Brazil’s chairmanship, BRICS had managed to issue a strong statement condemning U.S.-Israeli strikes on Iranian nuclear sites .
- Russia’s Role: Russian government spokesperson Maria Zakharova confirmed the May Foreign Ministers’ Meeting, calling it “a good opportunity for a thorough discussion of current issues on the international agenda” .
PRELIMS 360
What is BRICS?
- An intergovernmental grouping of emerging economies
- Originally:
- Brazil
- Russia
- India
- China
- South Africa
New Members (BRICS+):
- Saudi Arabia
- United Arab Emirates
- Iran
- Egypt
- Ethiopia
📌 Expansion reflects Global South representation
- BRICS+ aims to:
- Increase representation of Global South
- Counter dominance of Western blocs (like G7)
- Expand influence in energy, trade, geopolitics
🔹 Why BRICS+ Matters?
1. Energy Powerhouse
- Inclusion of:
- Saudi Arabia
- Iran
- United Arab Emirates
👉 Makes bloc dominant in global oil supply
2. Greater Global Influence
- More population, resources, markets
- Stronger voice in:
- IMF reforms
- Global governance
3. Push for Multipolar World
- Reduces Western dominance
- Promotes alternative institutions like:
- New Development Bank
🔹 Challenges of BRICS+
- More members → less cohesion
- Conflicting interests:
- India–China
- Iran–Saudi rivalry
- Decision-making becomes complex
🧠 UPSC Prelims Traps
✔ BRICS+ is not a separate formal organization
✔ It is an expanded/extended version of BRICS
✔ Expansion started as outreach → now institutionalising
