What is the India-Oman Free Trade Agreement (FTA)?

The India-Oman Free Trade Agreement (FTA), signed in December, aims to enhance bilateral trade by reducing tariffs and expanding market access. Under the agreement, Oman has offered zero-duty access on 98% of its tariff lines for Indian goods. The agreement is expected to improve India's export access to West Asia and Africa through Omani ports such as Salalah and Duqm.

Why are remittances important for India's economy?

Remittances are a major source of foreign exchange for India. They help offset the country's trade deficit and support overall Balance of Payments stability. According to RBI data, remittance inflows from Gulf countries declined from 47% in 2016-17 to 38% in 2023-24, while inflows from advanced economies such as the US and UK have increased.

How did the closure of the Strait of Hormuz affect India’s exports?

The closure of the Strait of Hormuz led to a shift in India's trade routes. Singapore became India's second-largest export destination in April 2026, with exports rising by 180% year-on-year to $3.20 billion. Meanwhile, exports to the UAE declined by 36% due to trade disruptions in West Asia.

What is the India-Nordic Green Technology Partnership?

The India-Nordic Green Technology Partnership is a Strategic Partnership focused on innovation and sustainable development. It leverages Nordic expertise in geothermal energy, Blue Economy, Arctic affairs, and sustainability along with India’s scale and manufacturing capacity. India-Nordic trade reached USD 19 billion in 2024, with exports at USD 9.4 billion and imports at USD 9.6 billion.

What is SARTHAK-PDS and why is it important?

SARTHAK-PDS is a government initiative aimed at modernizing India's Public Distribution System (PDS). With a total allocation of Rs 25,530 crore until March 2031, it merges intra-state foodgrain transport support and SMART PDS technology reforms. The scheme enhances logistics efficiency, grievance redressal, and digital integration while strengthening the National Food Security Act implementation.

What is the Pax Silica initiative?

Pax Silica is a US-led strategic initiative aimed at countering China's dominance in emerging sectors such as Artificial Intelligence. India became a signatory in February 2026 and signed the India-U.S. Critical Minerals Framework to secure supply chains in semiconductors, critical minerals, and advanced technologies.

What is Special Additional Excise Duty (SAED)?

Special Additional Excise Duty (SAED) is a tax levied by the Government of India on petroleum products and crude oil. It is used to regulate fuel prices and generate revenue. The government recently reduced SAED by Rs 10 per litre on petrol and diesel to cushion the impact of rising global crude oil prices.

Is India the largest cotton producer in the world?

India is the second-largest cotton producer after China. However, it imports about 15% of raw cotton and 20% of yarn to meet domestic demand. Cotton production has stagnated due to limited seed innovation, inadequate irrigation, and frequent pest attacks.

How is minimum wage calculated in India?

Minimum wage in India is calculated under the Minimum Wages Act, 1948. It considers factors such as the nature of work, skill level, and cost of living. The calculation includes basic wages, Variable Dearness Allowance (VDA), and other essential components. Expenditure on health and education is considered under discussions related to living wage, but not currently included in minimum wage calculations.

Daily UPSC Prelims MCQs - Economy - 1st June 2026

Devesh
Jun 1
1 min read

Test your UPSC CSE 2027 preparation with today’s Economy (Every Monday) Quiz — covering India-Oman trade, Remittances, India-Nordic relationship, SARTHAK-PDS programme, Pax Silica initiative, SAED, largest cotton producer, calculating the minimum wage and more.

Monthly Current Affairs Pointer April 2026

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