Background
The Government replaced the Planning Commission with a new institution named NITI Aayog, the National Institution for Transforming India, through a Cabinet Resolution.
It is meant to be a think-tank giving governments at the Centre and in the States strategic and technical advice, and to replace a centre-to-state one-way flow of policy with a continuing partnership with the States.
The Prime Minister is the Chairperson, and the Governing Council has the Chief Ministers of all States and the Lt. Governors of Union Territories.
Regional Councils can be formed for a specified tenure to handle issues affecting more than one State or a region.
The full-time framework has a Vice-Chairperson and a Chief Executive Officer of Secretary rank, both appointed by the Prime Minister, along with full-time Members, a maximum of 2 part-time Members and a maximum of 4 ex-officio Members.
Chairperson:
Prime Minister of India
Governing Council:
Chief Ministers of all States and Lt. Governors of Union Territories
Part-time Members:
Maximum of 2
Ex-officio Members:
Maximum of 4
Why it matters for exams: NITI Aayog's replacement of the Planning Commission, its Governing Council and its cooperative-federalism aim are standard polity and economy questions.
Kerala PSCUPSCSSCBank
In plain words
Cooperative federalism Cooperative federalism — Centre and States working as partners in policy rather than the Centre dictating to the States.
Ex-officio member Ex-officio member — A member who sits on the body because of another office he or she holds.
3 October 2026
Between April and September 2026, Kerala's GST revenue after IGST settlement rose 18.8% to Rs 19,583 crore, from Rs 16,482 crore a year earlier.
Across all states the increase was 16%, with combined collections of Rs 5.79 lakh crore.
Kerala's own SGST collections grew 13.8% to Rs 8,970 crore, against 5.8% nationally.
In September 2026, post-settlement revenue rose 9% to Rs 3,451 crore and own SGST rose 8% to Rs 1,481 crore.
April-September 2026 is the first April-September period fully under the revised GST rate structure introduced in September 2025, so it is compared with a year-earlier period wholly under the old structure; the figures are provisional.
Post-settlement GST revenue, April-September:
Rs 19,583 crore
Growth over a year earlier:
18.8%
Own SGST collections:
Rs 8,970 crore
September 2026 post-settlement revenue:
Rs 3,451 crore
Why it matters for exams: GST revenue sharing, SGST and IGST settlement and State finances are recurring topics in Kerala PSC and UPSC economy papers.
Kerala PSCUPSC
In plain words
IGST Integrated Goods and Services Tax — Tax on inter-State supplies and imports, apportioned to the State where the goods are consumed.
SGST State Goods and Services Tax — The State's share of GST on supplies made within the State.
Background
The Udhampur-Srinagar-Baramulla Rail Link (USBRL), 272 km long, covers Udhampur, Reasi, Ramban, Srinagar, Anantnag, Pulwama, Budgam and Baramulla districts of Jammu and Kashmir.
The Chenab Bridge in Reasi district is the world's highest railway bridge: 1315 m long, with an arch span of 467 m and a height of 359 m above the river bed.
The Anji Khad Bridge is Indian Railways' first cable-stayed bridge; its deck is 331 m above the river bed and its main pylon is 193 m high.
All tunnels longer than 2 km have mechanical ventilation, and escape tunnels have been built where a tunnel is more than 3 km long, totalling 66 km.
USBRL length:
272 km
Chenab Bridge height above river bed:
359 m
Chenab Bridge arch span:
467 m
Anji Khad deck height:
331 m
Escape tunnels:
66 km
Why it matters for exams: The record dimensions of the Chenab Bridge and the layout of USBRL are favourite static-GK and infrastructure questions.
Kerala PSCUPSCSSC
In plain words
Arch span — The distance covered by the curved arch of a bridge between its supports.
Pylon — The tall tower of a cable-stayed bridge from which the cables are strung.
Background
The Zojila Tunnel is being built between Baltal and Minamarg on National Highway-1 to give year-round connectivity between Jammu and Kashmir and Ladakh.
The nearly 14-km-long bi-directional tunnel is being developed at a cost of approximately ₹6,800 crore, at altitudes of 2,900 metres to 3,310 metres.
The National Highways & Infrastructure Development Corporation Limited (NHIDCL) is executing the project.
On June 9, 2026, Union Minister Nitin Gadkari witnessed the breakthrough of the main tunnel at the eastern portal at Minamarg in Kargil district.
On completion, travel time between Sonamarg and Minamarg will fall from nearly two hours to about 30 minutes.
Length:
nearly 14 km
Cost:
approximately ₹6,800 crore
Altitude:
2,900 metres to 3,310 metres
Road:
National Highway-1
Sonamarg-Minamarg time:
nearly two hours to about 30 minutes
Why it matters for exams: Zojila and other Himalayan tunnels are staple infrastructure and strategic-connectivity questions in UPSC, SSC and PSC papers.
Kerala PSCUPSCSSC
In plain words
NHIDCL National Highways & Infrastructure Development Corporation Limited — The government company that builds highways in strategic and remote regions.
Bi-directional tunnel — A single tunnel in which traffic moves in both directions.
3 October 2026
Spain's Congress on Friday 2 October rejected two decree-laws that the government had presented to tackle the housing crisis.
The first decree was defeated by 178 votes to 172 and the second by 184 to 166.
The decrees introduced initiatives to protect tenants in the rental market and needed parliamentary approval to remain in place.
They were a response to nationwide protests after 87-year-old Maricarmen Abascal was evicted from her flat when she could not pay a sharp rent increase.
The defeat raises pressure on Prime Minister Pedro Sánchez, who has no congressional majority, to call a snap election not due until next summer.
First decree:
rejected 178 to 172
Second decree:
rejected 184 to 166
Eviction that sparked protests:
Maricarmen Abascal, 87
Election due:
next summer
Why it matters for exams: Decree-laws, parliamentary majorities and snap elections are core polity concepts, and housing is a live issue across Europe.
Kerala PSCUPSC
In plain words
Decree-law Royal decree-law — An emergency government measure that needs parliamentary approval to remain in place.
Snap election Early general election — An election called before the scheduled date.
3 October 2026
G7 leaders announced on Friday 2 October that up to 100 million barrels of oil and diesel will be released from reserves to ease supply concerns.
The release begins immediately and lasts four months, coordinated by the International Energy Agency.
It includes a 'substantial release' of diesel within 20 days, with further diesel releases to be discussed as necessary.
Members agreed there will be no export restrictions on energy and energy products between G7 members.
The deal followed President Trump's threat to ban US diesel exports unless Europe released more of its own stocks; President Macron chaired the leaders' meeting.
Size of release:
up to 100 million barrels
Duration:
four months
Substantial diesel release:
within 20 days
Coordinating agency:
International Energy Agency
Why it matters for exams: Emergency stock releases, the IEA and the G7 are staple topics when oil prices and energy security are in the news.
Kerala PSCUPSCSSCBank
In plain words
G7 Group of Seven — Advanced economies comprising the US, UK, Canada, Japan, Germany, Italy and France, with the EU also represented at meetings.
IEA International Energy Agency — The body that coordinates the collective release of its members' emergency oil stocks.
3 October 2026
In a first for the Union Territory, two mineral blocks in Jammu and Kashmir were successfully auctioned through the Ministry of Mines under the Central Government's mineral auction process, PIB said on 2 October 2026.
The Koot-Kapran Limestone Block in Anantnag covers 22.43 hectares with estimated resources of 4.75 million tonnes, explored up to the G-4 stage.
The Wantrag Limestone Block in Anantnag covers 5.36 hectares with estimated resources of 10.853 million tonnes, explored up to the G-3 stage including 159 metres of drilling.
The Government of Jammu and Kashmir had entrusted the auction of mineral blocks to the Ministry of Mines.
Blocks auctioned:
2 limestone blocks, Anantnag
Koot-Kapran block:
22.43 hectares; 4.75 million tonnes
Wantrag block:
5.36 hectares; 10.853 million tonnes
Auction conducted by:
Ministry of Mines
Why it matters for exams: Mineral auctions, resource estimates and Union Territory development are useful for economy and geography questions.
Kerala PSCUPSCSSC
In plain words
Mineral block — A defined area with identified mineral resources that is offered for mining through auction.
3 October 2026
Union Minister Sarbananda Sonowal attended the 65-year ceremony of the Shipping Corporation of India (SCI) at the International Cruise Terminal, Mumbai, on 2 October 2026.
Founded in 1961 as a liner shipping company with 19 vessels, SCI now operates 58 vessels totalling 5.26 million deadweight tonnage (DWT).
Mr Sonowal asked SCI to take a leading role in self-reliant shipbuilding and tied its growth to the Maritime Amrit Kaal Vision 2047.
He pointed to SCI's performance during the recent Strait of Hormuz crisis in safeguarding energy and trade security.
Capt. B.K. Tyagi is SCI's Chairman and Managing Director.
Founded:
1961
Fleet at founding:
19 vessels
Fleet now:
58 vessels
Total tonnage:
5.26 million DWT
National goal:
Maritime Amrit Kaal Vision 2047
Why it matters for exams: Maritime sector milestones, public sector undertakings and the Maritime Amrit Kaal Vision 2047 feature in economy and current-affairs papers.
Kerala PSCUPSCSSCBank
In plain words
DWT Deadweight tonnage — The total weight a ship can carry, including cargo, fuel, crew and supplies.
3 October 2026
Union Agriculture Minister Shivraj Singh Chouhan held bilateral talks in New Delhi on 28 September 2026 with Silvio Erkens, the Netherlands' Minister for Agriculture, Fisheries, Food Security and Nature.
They reviewed ongoing cooperation and reiterated their resolve to enhance productivity through modern technology, innovation and knowledge exchange.
Progress on establishing 25 Centres of Excellence (CoEs) in the agriculture and horticulture sectors was discussed.
Both sides agreed to explore seed-sector cooperation through a work plan outlining key areas of cooperation.
PIB issued the release on 2 October 2026.
Meeting date:
28 September 2026
Venue:
New Delhi
Netherlands minister:
Silvio Erkens
Centres of Excellence discussed:
25
Why it matters for exams: India's bilateral partnerships in agriculture and the Centres of Excellence model are useful for international relations and agriculture questions.
Kerala PSCUPSCSSC
In plain words
CoE Centre of Excellence — A specialised centre set up to promote research, skills and best practice in a field.
3 October 2026
NABKISAN Finance Limited, a subsidiary of NABARD, listed India's first social bond dedicated to the water, sanitation and hygiene (WASH) sector on the National Stock Exchange in Mumbai on 1 October 2026.
The issue was oversubscribed 1.8 times and raised ₹180 crore.
The five-year bond carries a coupon rate of 8.10% and matures in September 2031; it is rated CRISIL AAA (Stable) and CARE AAA (Stable).
The proceeds will expand access to safe water, sanitation and hygiene in rural and underserved communities.
Water.org acted as Technical Advisor and Knowledge Partner for the issue.
Issuer:
NABKISAN Finance Limited (NABARD subsidiary)
Amount raised:
₹180 crore
Subscription:
1.8 times
Coupon rate:
8.10%
Maturity:
September 2031
Why it matters for exams: Social bonds, sustainable finance and NABARD's role in rural development are recurring economy and banking topics.
Kerala PSCUPSCSSCBank
In plain words
NABARD National Bank for Agriculture and Rural Development — The national development bank for agriculture and rural development; NABKISAN is its subsidiary.
WASH Water, Sanitation and Hygiene — The sector covering safe drinking water, toilets and hygiene practices.
Social bond — A bond whose proceeds are used for projects with social benefits.
Background
This matters now because the Chief Minister inaugurated five new Kerala Forest Development Corporation (KFDC) projects on 30 September, led by the SHOLA workation brand.
SHOLA, short for Seek-Hike-Observe-Lodge-Absorb, offers workation facilities at Gavi and Suryanelli, the first such idea in the government sector in Kerala.
KFDC also released 'Atma', a brand for tea and coffee from its plantations, and began work on a premium pod stay at Vagamon, where four pods are due by December.
The 'Travel Today Pay Tomorrow' instalment tour scheme and eco-guide training also began.
Forest Minister Shibu Baby John said sandalwood from KFDC trees will be released under the 'Kalabham' brand.
Workation locations:
Gavi and Suryanelli
Pods at Vagamon:
four
Tea and coffee brand:
Atma
Sandalwood brand:
Kalabham
Why it matters for exams: Forest-department schemes, brand names and eco-tourism locations such as Gavi and Vagamon are staple Kerala PSC facts.
Kerala PSC
In plain words
Workation — Working remotely while staying at a holiday destination.
KFDC Kerala Forest Development Corporation — A State corporation that runs plantations and forest-based enterprises.
3 October 2026
Kerala's decision on arranging its share of the Angamaly-Erumeli Sabari rail project cost is still pending.
The State had told the Centre that half the cost would be raised through the Kerala Infrastructure Investment Fund Board (KIIFB), but the plan is in doubt after the change in government and the appointment of a committee to examine KIIFB's functioning.
Kerala must provide around Rs 1,900 crore, of which around Rs 1,300 crore is needed for land acquisition.
The proposed plan envisages Rs 300 crore each in the first two years, with further allocations in 2028-29.
The Railways is examining whether land acquisition can be completed at least up to Thodupuzha in the first phase; the line is to add 14 new railway stations.
Kerala's share:
around Rs 1,900 crore
Needed for land acquisition:
around Rs 1,300 crore
New railway stations:
14
Planned yearly release (first two years):
Rs 300 crore
Why it matters for exams: Centre-State cost sharing and KIIFB financing are frequent Kerala PSC topics on infrastructure and State finance.
Kerala PSCUPSC
In plain words
KIIFB Kerala Infrastructure Investment Fund Board — The State body that raises money for infrastructure projects.
3 October 2026
According to the New Indian Express, the Himachal Pradesh State Electricity Board has agreed to supply 600 MW during peak hours from October 1 to May 31, 2027, and KSEB began receiving it on Thursday, avoiding power cuts for two days.
The Hindu, reporting on 1 October, said KSEB officials had ensured 600 MW to 800 MW from Himachal Pradesh for October, with talks on for November and December.
The rate is Rs 14.5 per unit; KSEB had rejected an earlier offer of 210 MW round the clock at Rs 10 per unit as daytime power was in surplus and available on the exchange at about Rs 2.
With the deal, peak-hour availability has risen to 4795 MW against average consumption of 4500 to 5000 MW.
The report says Chief Minister V D Satheesan's intervention helped clinch the deal, and a Super El Nino forecast also weighed on the decision.
KSEB chairman M G Rajamanickam said the Chief Minister has directly asked Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu to reduce the rate.
Peak-hour supply:
600 MW
Rate:
Rs 14.5 per unit
Peak-hour availability after deal:
4795 MW
Supply period:
October 1 to May 31, 2027
Why it matters for exams: Power purchase, peak demand and the role of KSEB are recurring Kerala PSC economy and current-affairs topics.
Kerala PSCUPSC
In plain words
MW Megawatt — A unit of electrical power equal to one million watts.
KSEB Kerala State Electricity Board — The State's public power utility.
Background
India established a legal framework for protecting products linked to specific regions through the Geographical Indications of Goods (Registration and Protection) Act, 1999, with the Rules notified in 2002; the framework became operational in 2003.
Darjeeling Tea from West Bengal was the first product in India to receive a GI tag, with protection extended to both the product and its logo.
Other early registrations included Aranmula Kannadi, a traditional handicraft from Kerala, and Pochampalli Ikat, a renowned textile craft from Telangana.
Any association of producers, organisation, or authority established under law can apply for GI registration, and the applicant must be a legal entity and represent the interests of the producers of the concerned product.
The GI Registry is located at Geographical Indications Registry, Chennai, which has all-India Jurisdiction.
The registration of a GI is valid for ten years, but may be renewed from time to time.
Revocation, cancellation or variation is governed by Section 27 of the Act, and a registration may be cancelled if it was obtained through fraud or misrepresentation, or if it has fallen into disuse.
India is home to over 800 registered GI products, and 445 handicraft products and 27 product logos have been registered under the Act; a GI that misleads consumers about geographical origin cannot be registered at all.
Act under which GIs are registered in India:
Geographical Indications of Goods (Registration and Protection) Act, 1999
Kerala handicraft among India's early GI registrations:
Aranmula Kannadi
Where the Registry sits and its reach:
Geographical Indications Registry, Chennai, which has all-India Jurisdiction
Validity of a GI registration:
registration of a GI is valid for ten years
Provision governing revocation and cancellation:
Section 27 of the Act
Registered GI products in India:
over 800 registered GI products
Why it matters for exams: GI filings and the fee changes around them are a steady news item, and an examiner is far more likely to ask where the Registry sits or how long a tag lasts than to ask for a list of tagged products.
Kerala PSCUPSCSSC
In plain words
GI Geographical Indication — A sign used on goods whose quality or reputation comes from a particular place of origin.
Authorised user Authorised user of a GI — A producer registered to use a GI tag, as distinct from the body that owns the registration.
Aranmula Kannadi Aranmula metal mirror — A front-surface mirror made at Aranmula in Kerala from a polished metal alloy rather than glass.
Background
Kudumbashree is the poverty eradication and women empowerment programme implemented by the State Poverty Eradication Mission (SPEM) of the Government of Kerala.
The name Kudumbashree in Malayalam language means 'prosperity of the family'.
Kudumbashree has a three-tier structure for its women community network, with Neighbourhood Groups (NHGs) at the lowest level, Area Development Societies (ADS) at the ward level, and Community Development Societies (CDS) at the local government level.
The community structure that Kudumbashree adopted evolved from the experiments in Alappuzha Municipality and Malappuram in early 1990s, and the network was extended to cover the entire State in three phases during 2000-2002.
Membership is open to all women, limited to one member per family.
The Ministry of Rural Development (MoRD), Government of India recognised Kudumbashree as the State Rural Livelihoods Mission (SRLM) under the National Rural Livelihoods Mission (NRLM).
2.23 lakh Neighbourhood Groups have live bank linkage loans worth Rs.8948 crores and are engaged in income-generating livelihood activities.
Kudumbashree has onboarded products on the Open Network for Digital Commerce (ONDC) platform, and its National Resource Organisation has entered into MOU with over 16 states to support livelihoods and the panchayat-community interface.
Mission that implements Kudumbashree:
State Poverty Eradication Mission (SPEM)
Shape of the women community network:
three-tier structure
Unit at the lowest level:
Neighbourhood Groups (NHGs) at the lowest level
Unit at the ward level:
Area Development Societies (ADS) at the ward level
Unit at the local government level:
Community Development Societies (CDS) at the local government level
Bank linkage loans live with Neighbourhood Groups:
Rs.8948 crores
Why it matters for exams: Kudumbashree is in the news continuously through ONDC listings, janakeeya hotels and its resource teams working in other States, and the fact that decides a mark is which tier sits at which level of government.
Kerala PSCUPSCBank
In plain words
NHG Neighbourhood Group — The base unit of Kudumbashree, a group of women from neighbouring households.
Bank linkage Bank linkage loan — A loan a bank gives directly to a self-help group on the strength of its savings and repayment record.
Background
Vizhinjam Port is a strategic maritime project near Thiruvananthapuram in Kerala, and the first deep water container transhipment port in India.
As one of the few natural deep-water ports in India, it can efficiently accommodate large cargo and container ships - including the capacity to handle megamax containerships - without the dredging a shallower harbour would need.
This is the first Greenfield port project in India, initiated by a state Government, with an investment exceeding ₹18,000 crores, and it was developed under the Public Private Partnership (PPP) mode.
Transhipment means moving containers from a very large ocean-going ship onto smaller feeder vessels for the last leg, so a transhipment hub needs depth at the quay rather than a big local market.
The first mother ship to dock there, MV San Fernando, came with a capacity upto 9000 TEUs.
Its strategic location near international shipping routes significantly reduces transit times for vessels, and it is placed to serve commerce between Southeast Asia, the Middle East, and Africa.
The port brings healthy competition with Colombo and Singapore transhipment hubs, which have long handled cargo bound for India.
Projects worth more than ₹24,000 crores are being implemented in Kerala under the Sagarmala project.
What the site is, in the Ministry's words:
few natural deep-water ports
Investment in the port project:
₹18,000 crores
Capacity of the first mother ship to dock, MV San Fernando:
9000 TEUs
Mode under which the port was developed:
Public Private Partnership (PPP)
Transhipment hubs it now competes with:
Colombo and Singapore transhipment hubs
Value of Sagarmala projects being implemented in Kerala:
₹24,000 crores
Why it matters for exams: Vizhinjam is live news almost every month, and the question that actually separates candidates is why a natural deep draught matters at all, not when the port opened.
Kerala PSCUPSCSSCBank
In plain words
TEU Twenty-foot Equivalent Unit — The standard measure of container capacity, counted as one twenty-foot box.
Transhipment Transhipment of cargo — Shifting containers from one ship to another at an intermediate port instead of carrying them all the way.
Greenfield port Greenfield port project — A port built from nothing on a fresh site, rather than an expansion of an existing harbour.
Draught Draught of a vessel — The depth of water a loaded ship needs under it to float clear of the seabed.
Background
The Constitution (One Hundred and First Amendment) Act, 2016 inserted Article 279A, under which the GST Council is a constitutional body and a joint forum of the Centre and the States.
Article 279A(1) required the GST Council to be constituted by the President within 60 days of the commencement of Article 279A; the notification bringing Article 279A into force took effect from 12th September, 2016 and the Council was constituted on 15.09.2016.
Its members are the Union Finance Minister as Chairperson, the Union Minister of State in charge of Revenue or Finance, and the Minister in charge of finance or taxation or any other Minister nominated by each State Government.
Under Article 279A(4) the Council makes recommendations to the Union and the States on the goods and services that may be subjected to or exempted from GST, model GST laws, the principles that govern place of supply, threshold limits, and GST rates including floor rates with bands, as well as special rates for raising additional resources during natural calamities or disasters and special provisions for certain States.
Every decision of the Council is taken by a majority of not less than three-fourths of the weighted votes of the members present and voting.
Within that weighting, one-third of the total votes cast belongs to the Centre and two-thirds of the total votes cast to the States taken together.
The Secretary (Revenue) is the ex-officio Secretary to the GST Council, and the Council Secretariat has its office at New Delhi, manned by officers taken on deputation from both the Central and State Governments.
Because neither side alone commands three-fourths of the weighted votes, the design forces the Centre and the States to build agreement before a recommendation can carry.
Voting threshold for a decision of the Council:
three-fourths of the weighted votes of the members present and voting
Weight of the Centre's vote:
weightage of one-third of the total votes cast to the Centre
Weight of the States' votes:
weightage of two-thirds of the total votes cast to the States
Time limit for constituting the Council:
within 60 days of the commencement of Article 279A
Chairperson of the Council:
Union Finance Minister - Chairperson
Why it matters for exams: The weighted-voting arithmetic is the one question on the Council that cannot be answered by memory alone, and the composition and the 60-day limit are standard recall.
Kerala PSCUPSCSSCBank
In plain words
GST Goods and Services Tax — A single indirect tax on the supply of goods and services, shared between the Union and the States.
weighted vote weighted vote — A vote counted not as one head but as a fixed share of the total, fixed here at one-third for the Centre and two-thirds for the States.
place of supply place of supply — The rule that decides which State a transaction is taxed in.
Background
Article 280 of the Constitution requires the President, within two years from the commencement of the Constitution and thereafter at the expiration of every fifth year, or at such earlier time as the President considers necessary, to constitute a Finance Commission by order.
The Commission consists of a Chairman and four other members, all appointed by the President.
Its duty is to recommend the distribution between the Union and the States of the net proceeds of taxes that are to be, or may be, divided between them, and the allocation between the States of their respective shares.
It also recommends the principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India.
Article 280 further asks it to recommend the measures needed to augment the Consolidated Fund of a State so as to supplement the resources of the Panchayats and of the Municipalities in that State, on the basis of the recommendations made by the Finance Commission of the State.
Any other matter referred to the Commission by the President in the interests of sound finance also falls within its terms of reference, and the Commission determines its own procedure.
Under Article 281 the President must cause every recommendation of the Commission, together with an explanatory memorandum on the action taken on it, to be laid before each House of Parliament.
The Finance Commission (Miscellaneous Provisions) Act, 1951 fixes the qualifications: the Chairman is selected from persons who have had experience in public affairs, and the four other members from persons who are, have been or are qualified to be appointed as Judges of a High Court, or have special knowledge of the finances and accounts of Government, or have had wide experience in financial matters and in administration, or have special knowledge of economics.
Membership Article 280 provides for:
a Chairman and four other members
Interval at which a Commission is to be constituted:
at the expiration of every fifth year
Outer limit for the first Commission after the Constitution commenced:
within two years from the commencement
Principles the Commission recommends on Union grants:
the principles which should govern the grants-in-aid
Residuary head in the terms of reference:
any other matter referred to the Commission by the President
Why it matters for exams: The Commission's membership, its five-yearly cycle, the five heads in its terms of reference and the Article 281 laying requirement are the standard objective questions on Centre-State fiscal relations.
Kerala PSCUPSCSSCBank
In plain words
Consolidated Fund of India Consolidated Fund of India — The main government account into which all revenues flow and out of which spending needs legislative authorisation.
grants-in-aid grants-in-aid of the revenues of the States — Money the Union gives a State out of the Consolidated Fund of India over and above its share of taxes.
net proceeds net proceeds of a tax or duty — The collection from a tax after the cost of collecting it has been deducted.
Background
The World Bank's Mexico country overview states that with a population of nearly 130 million people, a rich cultural history, great diversity, and a favorable geography with abundant natural resources, Mexico ranks among the fifteen largest economies in the world and is the second largest in Latin America. The same page adds that the country has strong macroeconomic institutions, an open trade policy, and a diversified manufacturing base integrated into global value chains. On oil, the US Energy Information Administration records that Mexico's petroleum and liquid fuels production peaked at 3.9 million barrels per day (b/d) in 2004 and decreased each year until 2019, when production stabilized around 1.9 million b/d. The EIA also records that in December 2013, Mexico changed its constitution to allow for private petroleum production for the first time since 1938; before that, Pemex, Mexico's national oil company, was the sole petroleum producer in the country. The World Trade Organization's member page records that Mexico joined the WTO at its creation and had been a member of GATT since 24 August 1986. Taken together, the two accounts show an economy whose weight rests on a large population and a diversified manufacturing base rather than on rising oil output.
Mexico's placement among world economies, as the World Bank writes it:
among the fifteen largest economies in the world
Mexico's placement within Latin America:
the second largest in Latin America
Population, as the World Bank writes it:
nearly 130 million people
Peak petroleum and liquid fuels production:
3.9 million barrels per day (b/d) in 2004
Level at which production later stabilised:
stabilized around 1.9 million b/d
Manufacturing base, as the World Bank describes it:
a diversified manufacturing base integrated into global value chains
GATT membership, as the WTO records it:
a member of GATT since 24 August 1986
Why it matters for exams: Country-economy questions ask for a defensible placement rather than a precise rank, and the World Bank's own wording gives that, while the oil story supplies the standard example of a resource sector shrinking as manufacturing grows.
Kerala PSCUPSCBank
In plain words
Pemex Petroleos Mexicanos — Mexico's national oil company, which the EIA records as the country's sole petroleum producer before private production was allowed.
b/d barrels per day — The standard unit for crude oil output, counting barrels produced in a day.
global value chain global value chain — A production network in which different stages of making one product are carried out in different countries.
Background
Mexico, which gained independence from Spain in 1821, was the first country in Latin America to establish diplomatic relations with independent India in 1950. A 'Privileged Partnership' was established between the two countries during a visit by the then President of Mexico to India in 2007. India is Mexico's ninth largest trading partner, with a bilateral trade of US$ 11.090 billion in 2025, made up of Indian exports of US$ 9.13 billion to Mexico and imports of US$ 1.969 billion from Mexico. The most important items of export from India are automobiles and auto parts, pharmaceuticals, engineering goods and chemical products; from the Mexican side the most important item is crude oil which occupies 75% its export basket. India's investments in Mexico up to 2024 are around US $ 4 billion and over 250 Indian companies have a presence in Mexico, while the total investment of Mexican companies in India is approximately USD 810 Million. The ITEC program was extended to Mexico in 1991 and 35 training slots are available annually to Mexican participants. Mexican wheat varieties and hybrids developed with scientists based at CIMMYT in Mexico were instrumental in the success of the Green Revolution in India.
Bilateral trade in 2025:
US$ 11.090 billion
Indian exports to Mexico:
US$ 9.13 billion
Indian imports from Mexico:
US$ 1.969 billion
India's rank among Mexico's trading partners:
ninth largest trading partner
Indian investment in Mexico up to 2024:
around US $ 4 billion
Mexican investment in India:
USD 810 Million
Why it matters for exams: India-Latin America questions almost always start with Mexico, and the examinable points are stacked here: the first diplomatic relationship in the region, the named Privileged Partnership, a trade basket dominated by Indian manufactured exports against Mexican crude oil, and the CIMMYT wheat link to the Green Revolution.
Kerala PSCUPSCBank
In plain words
ITEC Indian Technical and Economic Cooperation — India's training and capacity-building programme that offers course places to partner countries.
CIMMYT International Maize and Wheat Improvement Center — The wheat and maize research centre based in Mexico whose varieties fed India's Green Revolution.