Prelims Focus 1st September 2026

01/09/2026

24 4 minutes read

Most-Favoured Nation (MFN)

In News: India has reportedly proposed to limit the application of the Most-Favoured Nation (MFN) in the proposed changes to its bilateral investment treaty (BIT) regime.

India did not include MFN in its BIT in 2016 after its experience of investment arbitration.
The current move is believed to be required to attract foreign investors as well as give Indian investors such treatment in other major economies such as the US or the EU.
But giving qualified MFN status to foreign investment, as an open-minded approach, could be a great leverage in bilateral negotiations as well.

Pradhan Mantri Fasal Bima Yojana

In News: Pradhan Mantri Fasal Bima Yojana (PMFBY) has evolved as one of the key pillars of India’s agricultural risk management system in the last 10 years.

Pradhan Mantri Fasal Bima Yojana (PMFBY)
It was launched in 2016 to expand the scope of farmers’ coverage for crop insurance.
It covers risks from pre-sowing, including prevented/failed sowing, broad-based mid-season adversity, localised calamities due to hailstorms, floods, landslides, etc. at specific land parcels, to post-harvest losses due to cyclones, unseasonal rainfall and other specified hazards.
The Union budget has allocated Rs. The Government has reiterated its continued efforts on farmer coverage under crop insurance with Rs 12200 crore for PMFBY.

Sardar Patel National Unity Award

In News: It is expected that the Sardar Patel National Unity awards will be announced on 31st October, marking the celebration of Sardar Vallabhbhai Patel’s 150th birth anniversary.

In 2019, the Ministry of Home Affairs (MHA) introduced Sardar Patel National Unity Award for exceptional service in the cause of national unity and national integrity.
The award is anticipated to be awarded on par with the Padma Vibhushan.
The award committee would be headed by the Prime Minister, and would consist of the Cabinet Secretary, Principal Secretary to the Prime Minister, Secretary to the President, Home Secretary, and 3/4 of eminent persons appointed by the Prime Minister.
The award will consist of a medal and a certificate, but there will be no monetary award or cash prize attached.
It would not be awarded after death, unless in exceptional and highly meritorious circumstances.
The medal will be in the shape of a lotus leaf, constructed from gold and silver, with Patel’s portrait on one side of the medal and the national emblem on the other.

Vacuum Birefringence

In News: The study revealed strong evidence of vacuum birefringence around the magnetar 1E 1547.0−5408, as the X-rays revealed polarisations up to 80%.

About vacuum birefringence
A quantum phenomenon predicted by Quantum Electrodynamics (QED) that causes very strong magnetic fields to make space act as a birefringent crystal.
Theoretically, it was first formulated in the 1930s by Werner Heisenberg and Hans Heinrich Euler.
In effect, it occurs when the high magnetic field of a magnetar influences virtual electron–positron pairs in the quantum vacuum, leading to strong polarisation of light travelling through the magnetar.
It offers a unique opportunity for testing Quantum Electrodynamics (QED) under extreme conditions and it assists in the comprehension of the quantum nature of the vacuum and the magnetic field in neutron stars.

Mission Rangeen Machhli

In News: Mission Rangeen Machhli 2031 is a newly launched Strategic Action Plan for Ornamental Fisheries Development in India. Released on 31 August 2026 by Vice President C. P. Radhakrishnan in Agatti, Lakshadweep, the roadmap aims to transition India’s decorative aquarium fish sector into a highly organized, scientifically backed, and globally competitive industry while boosting the country’s Blue Economy.

Core Objectives & Framework

The strategic plan establishes a uniform national framework across the entire ornamental fisheries value chain, addressing historically fragmented practices. It focuses on three core pillars:

Scientific Management: Standardizing protocols for broodstock management, selective breeding, and advanced hatchery operations.
Biosecurity & Health: Setting stringent regulations for quarantine, disease prevention, and pathogen control in farms and facilities.
Market Competitiveness & Compliance: Enhancing quality assurance, animal welfare, eco-friendly handling, secure transportation, and international trade protocols.

Semicon 2.0 Scheme

In News: The Ministry of Electronics and Information Technology (MeitY) officially notified the Semicon 2.0 Scheme on August 31, 2026. Administered by the India Semiconductor Mission (ISM), it features a consolidated fiscal outlay of ₹1,27,500 crore to build a self-reliant, full-stack semiconductor ecosystem.

Core Pillars & Incentives

Silicon Wafer Fabs: Offers 40% fiscal support on capital expenditure (Capex) for core facilities (minimum investment ₹20,000 crore).
Specialized Fabs & ATMP: Provides 35% support for Compound, Display, Photonics, and Advanced Packaging units; legacy OSAT units receive 25%.
Design & DLI: Limited to Indian citizens/OCIs. Includes a Deployment-Linked Incentive (DLI) of 9% of net sales (capped at ₹30 crore).
Workforce & R&D: Mandates training 100,000 additional semiconductor engineers and establishes Semiconductor Deep-Tech Awards.

India’s Coconut Sector

In News: According to the latest data released by the government, India’s coconut product exports surged by 62% in FY26, reaching ₹7,038.35 crore (approx. $794.70 million) compared to ₹4,349.03 crore in the previous fiscal year. This rapid expansion highlights India’s shift from a domestic-heavy consumer to a global export hub, moving significantly past the baseline of FY02 when exports stood at a mere ₹25.3 crore.

Core Growth Drivers & Value-Addition

Dominance of Activated Carbon: This niche product continues to anchor India’s export basket, contributing ₹4,688.89 crore (approx. 67% of the total coconut product exports, excluding coir). It is highly sought after globally for gold mining, water/air purification, capacitors, and pharmaceuticals.
Diversified Portfolio: Strong growth was observed in premium value-added segments such as virgin coconut oil, coconut milk, coconut water, and cosmetics.
Major Global Markets: The primary destinations driving this demand include the US, UAE, Germany, Sri Lanka, Russia, Turkey, and the UK.

Key Agronomic & Production Facts

Global Standing: India is the world’s largest coconut producer, contributing 31.24% of global output.
Regional Concentration: Just four southern states—Karnataka, Tamil Nadu, Kerala, and Andhra Pradesh—account for 91.11% of India’s total production.
Socio-Economic Impact: The domestic coconut sector supports nearly 30 million livelihoods, which includes approximately 10 million small and marginal farmers.