Prelims Focus 24th July 2026

24/07/2026

13 3 minutes read

FDI in Inventory-Based E-Commerce for Exports

In News: The government has permitted 100% Foreign Direct Investment (FDI) in inventory-based e-commerce models exclusively for the export of goods manufactured or produced in India, continuing the ban on such models for domestic retail.

Policy Context & Background

Previous Norms: FDI was restricted to the marketplace model; inventory-based B2C e-commerce was prohibited to protect small domestic retailers.
Recent Change: The Department for Promotion of Industry and Internal Trade (DPIIT) issued an update relaxing inventory restrictions solely for outbound shipments.

Key Provisions

Export Exclusive: Inventory ownership by foreign-funded entities is permitted only for India-made products.
Regulatory Compliance: Operations must align with the Foreign Trade Policy and Foreign Exchange Management Act (FEMA) guidelines.
Domestic Safeguards: Restrictions remain fully active for domestic B2C retail trading.

Significance

MSME Benefit: Enhances global market integration for small domestic manufacturers.
Safeguard: Protects local mom-and-pop retailers from foreign retail dominance.

Gati Shakti Multi-Modal Cargo Terminal (GCT) Policy

In News: The Union Government informed Parliament that 142 Gati Shakti Cargo Terminals (GCTs) have been commissioned, with 310 additional terminals approved to transition India toward efficient rail-based logistics.

Policy Framework & Background

The Ministry of Railways launched the Gati Shakti Multi-Modal Cargo Terminal Policy in December 2021 to streamline various terminal models. It integrates with the PM Gati Shakti National Master Plan, which provides a digital GIS platform for cross-sectoral infrastructure planning.

Target Mandate: Establish 300 GCTs initially to accelerate freight infrastructure.
Funding Architecture: Development uses private investment without financial onus on Indian Railways.
Land Allocation: Terminals are built on both private land and vacant railway land.

Core Objectives of the GCT Policy

Infrastructure Convergence: Build synchronized multi-modal transport hubs linking rail, road, waterways, and ports.
Cargo Proliferation: Increase the volume of non-bulk commodities transported via rail networks.
Monetization Strategy: Utilize idle railway land assets to generate non-fare revenue through licensing.
Simplified Approvals: Replace complex multi-departmental clearances with a single-window timeline.

Bab el-Mandeb Strait

In News: The Bab el-Mandeb Strait is once again in the security spotlight because Iran has requested the Houthis to shut down the strategic waterway in case of a US attack on Iran.

The narrow water passage from Red Sea to the Gulf of Aden.
It is linked to the Suez Canal in north and to Mediterranean Sea, Arabian Sea, and the Indian Ocean in the east.

Importance

Strait is one of the world’s key shipping and energy lanes. Typically 12% of world trade transits through it.
Some 4.1 billion barrels of oil and oil products were transported through the Strait in 2024, representing approximately 5 per cent of the world’s total.
The closure would force ships to go around the Cape of Good Hope, adding 4,000 to 6,000 nautical miles and 10 to 20 days to transit times, leading to higher shipping costs and disrupting global supply chains.

Police Identification During Crowd Control

In News: Some police officers from the Delhi Police and Rapid Action Force (RAF) wearing plain clothes or without any nameplates in a recent protest in the city have raised questions about police identification and accountability.

In some cases, e.g., intelligence gathering, it is necessary to disguise identification or even to pose as someone else; in other cases, it is necessary to follow a statutory process and adhere to judicial guidance.
The Bharatiya Nagarik Suraksha Sanhita (Sections 148 to 160) allows only a Magistrate or a police officer to order the dispersal of an unlawful assembly. The law does not mandate that officers wear identification, but legal experts say that a police officer must be identifiable for the orders to have legal force.
D.K. Basu v. State of West Bengal (1997) is a landmark Supreme Court case which established that police officers carrying out arrests should be identifiable with a visible and conspicuous identity, thereby ensuring police accountability.
The Andhra Pradesh High Court in 2025 pointed out that citizens would not be able to identify plainclothes officers as police officers while they are in action.
Therefore, in exceptional cases, the use of plain clothes is acceptable; but in routine law and order work, it is a grey area.