LIC AAO Notification 2025 out

https://t.me/upsc_cse_update

🔆 S&P Upgrades India’s Sovereign Rating to ‘BBB’

📍 Context
✅ On Aug 16, 2025, S&P Global upgraded India’s long-term sovereign credit rating to BBB (from BBB-).
✅ Short-term rating: A-2 (from A-3).
✅ First upgrade since 2007 → signals confidence in India’s economic fundamentals.

📍 Key Highlights
✅ Robust Growth
• GDP avg growth 8.8% (FY22–24), highest in Asia-Pacific.
• Projected GDP growth 6.8% (next 3 yrs).
• Public infra investment ~5.5% of GDP; Union capex to hit ₹11.2 trillion (3.1% of GDP) by FY26.

✅ Fiscal Stability
• General govt deficit → decline from 7.3% (FY26) to 6.6% (FY29).
• State deficit avg → 2.7% of GDP.
• Centre’s deficit target → 4.4% of GDP (FY26).

✅ Credit & Inflation
• Inflation within RBI’s 2–6% band since 2015.
• CPI inflation July 2025 → 1.6% (down from 2.1% in June).
• RBI repo rate cut (100 bps) → now 5.5%.
• Current account deficit small, external position strong.

📍 Significance
✅ Boosts investor confidence → lower borrowing costs.
✅ Strengthens India’s data & financial credibility globally.
✅ Positions India as a resilient, attractive destination for global capital.

#Economy #UPSC #GS3

🔆 Logistics: India’s Growth Engine

📍 Context & Importance
✅ Logistics sector = backbone of trade, supports manufacturing, services, e-commerce.
✅ Employs 22 million+ people; CAGR of 10.7% expected till 2026.
✅ India aims to reduce logistics cost ✅ World Bank LPI 2023: India ranked 38th (up 6 places from 2018).

📍 Key Government Initiatives
✅ National Logistics Policy (2022): ULIP & LDB for efficiency & transparency.
✅ PM GatiShakti (2021): Integrated multimodal infrastructure with 1,700+ data layers.
✅ Dedicated Freight Corridors: 96% operational (EDFC & WDFC).
✅ Maritime Amrit Kaal Vision 2047: Green ports, hydrogen hubs, shipbuilding push.
✅ Multi-Modal Logistics Parks: 35 approved hubs, 5 ready by 2027.
✅ GST & e-Way Bill: Streamlined goods movement, reduced delays.
✅ Gati Shakti Vishwavidyalaya: First logistics-focused university in India.
✅ LEADS Report: Assesses state logistics performance.

📍 Sustainability Path
✅ Freight GHG Calculator & Rail Green Points for eco-friendly freight.
✅ Aim: Rail freight share from 35–36% → 45% by 2030.
✅ Digital platforms (ULIP) supporting greener transport choices.

📍 Recent Milestones
✅ Inland Waterways cargo: 145.5 MT (2024–25), 29 operational waterways.
✅ Record 100 crore API transactions on ULIP (Mar 2025).
✅ ₹10 lakh crore investment commitments under Maritime Summit 2023.

📍 Significance
✅ Boosts competitiveness, trade & economic growth.
✅ Creates jobs, supports balanced regional development.
✅ Essential for India’s $5 trillion economy by 2027 & Viksit Bharat 2047 vision.

Possible Prelims MCQs

Q1. Which of the following are features of the National Logistics Policy (2022)?
1. Unified Logistics Interface Platform (ULIP)
2. Logistics Data Bank (LDB)
3. Direct subsidies to exporters
4. Integration with PM GatiShakti

Options:
A. 1, 2 and 4 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2, 3 and 4

Answer: A

Q2. The term “Rail Green P

oints”, recently seen in the news, relates to:
A. Carbon credits issued for renewable energy projects
B. Incentives for passengers choosing green tourism trains
C. Points earned by freight customers showing emission savings
D. Government subsidies for electrified rail corridors

Answer: C


Possib

Mains Question

Q. Discuss the significance of logistics reforms like the National Logistics Policy and PM GatiShakti Master Plan in enhancing India’s competitiveness. How can these contribute to achieving the $5 trillion economy goal? (250 words)

#Economy #Infrastructure #UPSC #GS3