Important topics and their relevance in UPSC CSE exam for February 26, 2026. If you missed the February 25, 2026, UPSC CSE exam key from the Indian Express, read it here.Mains Examination: General Studies-II, III: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests; Indian Economy and issues relating to planning, mobilisation of resources, growth, development and employment.What’s the ongoing story: The US Department of Commerce has imposed a 126 per cent tariff on Indian solar products after two Adani Group companies, Mundra Solar Energy and Mundra Solar PV, withdrew from the investigation proceedings, a preliminary anti-subsidy investigation report reviewed by The Indian Express shows.Key Points to Ponder:— What are the reasons for India’s dependence on solar energy equipment from China?— Know about the process and role of semiconductors in converting solar power into electricity?— What is the significance of solar energy for India?— What are the efforts taken by the Indian government to promote solar energy?— What is countervailing duty (CVD)?Story continues below this ad— What is the contribution of solar energy in India’s energy production profile?— Know about the following schemes: Advance Authorisation Program/Advance License Program, Duty Free Import Authorisation Scheme Program, Duty Drawback Program, and Export Promotion of Capital Goods SchemeKey Takeaways:— The Adani Group companies were ‘mandatory respondents’ in the proceedings, and their non-cooperation triggered ‘Adverse Facts Available’ penalty, the toughest methodology used by the US Department of Commerce. The order dated February 20 has resulted in steep tariffs being slapped on the sector.— The anti-subsidy investigation report stated: “We preliminarily determine that these non-responsive mandatory respondents (i.e., Mundra Solar Energy and Mundra Solar PV) withheld necessary information that Commerce requested, failed to provide information within the established deadlines, and significantly impeded this proceeding by failing to respond to Commerce’s Initial Questionnaire, either in whole or in part, by the applicable deadline.”Story continues below this ad— While imposing steep tariffs on Indian solar products, the US Department of Commerce also pointed to India’s high dependency on Chinese imports.— The document showed that the US Commerce Department initiated the countervailing duty (CVD) investigation on August 6 last year after it received a petition from Alliance for American Solar Manufacturing and Trade, a coalition of US solar manufacturers.— Based on requests by the Indian government and Adani Group companies, the Department of Commerce also amended the period of investigation from January 1, 2024, through December 31, 2024, to April 1, 2024, through March 31, 2025, aligning with the most recently completed Indian fiscal year.— Srivastava said that a significant aspect of the case is the US Department of Commerce’s focus on transnational subsidies. Investigators examined whether key inputs – such as polysilicon, silicon wafers, silver paste, solar glass, aluminium frames and junction boxes – were supplied across borders at below-market prices.Story continues below this ad— Solar imports from India were valued at $792.6 million in 2024, a more than nine-fold increase compared with 2022 levels, according to the US Commerce Department. Between 2021 and 2024, over 90% of India’s solar photovoltaic module exports were shipped to the US, data from India’s Ministry of Commerce showed.From the Economy page: US import duties on Indian solar panels may hit domestic OEMs— The US’ decision to impose preliminary countervailing duties (CVD) of 126% on solar imports from India comes at a critical juncture. The country’s solar module manufacturing capacity has expanded rapidly and now exceeds 140 gigawatts (GW) per annum.— Solar imports from India were valued at $792.6 million in 2024, a more than nine-fold increase compared with 2022 levels, according to the Commerce Department. Between 2021 and 2024, over 90% of India’s solar photovoltaic module exports were shipped to the US, according to the data from India’s Ministry of Commerce.— Piyush Goyal, the Co-Founder and Chief Executive Officer of Volks Energie, said 126% preliminary countervailing duty on Indian solar imports will have “widespread consequences.”Story continues below this ad— “While the immediate focus will understandably be on manufacturers, the real impact will extend beyond export numbers to project execution and the broader economics of the power sector,” he said.ALSO READ | Knowledge Nugget: Veer Savarkar — Essential facts and literary contributions that you should know— According to Goyal, the tariffs could alter key assumptions overnight, affecting financing structures, project timelines, and ultimately the price at which electricity is delivered. With renewable energy demand in India growing at an exponential pace, he stressed that manufacturing capacity must keep up.— Annual solar capacity installations in India are expected to be around 45-50 gigawatt direct current (GWdc), creating a substantial supply-demand gap.— The US’ decision follows the department’s countervailing duty investigations into crystalline silicon photovoltaic cells — whether or not assembled into modules — from India, Indonesia, and the Lao People’s Democratic Republic.Do You Know:Story continues below this ad— Light as a form of energy is observed either as a wave or particle behaving like discrete packets of energy called photons depending on the nature of the experiment. When photons strike electrons in the valence band, they can transfer their energy to those electrons, allowing them to jump to the conduction band.— But this transition happens if certain conditions, first explained by Einstein in his photoelectric effect theory, are met – the energy of the photon must be equal to the difference of energy between the two bands, also called band gap, which is measured in electron volts. Photons with higher energy will transfer the excess energy as heat leading to loss of electrons.— Apart from the energy criterion, there is also a symmetry criterion which is less relevant in this case. These two conditions immediately render approximately 50.4 per cent of the total solar spectrum unusable for electricity generation from PV cells made of crystalline silicon – 20.2 per cent of photons have lower energy, while 30.2 per cent have higher energy that is wasted as heat.— Other materials – such as gallium arsenide, cadmium telluride, and copper indium selenide – can capture different portion of the solar spectrum. However, issues like scarce natural abundance, handling difficulty, and environmental toxicity limit their widespread use.Other Important Articles Covering the same topic:Story continues below this adSolar energy systems: What is the science behind clean energy generation?To tap India’s clean energy potential, a to-do listPrevious year UPSC Prelims Question Covering similar theme:(1) Consider the following: (UPSC CSE 2024)1. Battery storage2. Biomass generators3. Fuel cells4. Rooftop solar photovoltaic unitsHow many of the above are considered “Distributed Energy Resources”?(a) Only one(b) Only two(c) Only three(d) All fourPrevious year UPSC Mains Question Covering similar theme:To what factors can the recent dramatic fall in equipment costs and tariff of solar energy be attributed ? What implications does the trend have for the thermal power producers and the related industry? (UPSC CSE 2015)Story continues below this adLinked by blood and sacrifice, back Gaza peace: PM to Israel ParliamentSyllabus:Preliminary Examination: Current events of national and international importance.Mains Examination: General Studies-II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.What’s the ongoing story: In a significant formulation before Israeli parliamentarians in the Knesset, Prime Minister Narendra Modi Wednesday backed the Gaza peace initiative, saying it holds the promise of a “just and durable peace” for all people of the region, including by “addressing the Palestine issue”.Key Points to Ponder:— Know the history of India-Israel bilateral relations.— What are the areas of cooperation between both the nations?— What is India’s stand on the Israel-Palestine issue?— Read about the Abraham Accords.— What is the significance of peace in West Asia from India’s perspective?— What is the Gaza peace plan?— How does cross-border terror pose a huge security challenge for India?— What is the significance of the India-Middle East-Europe Economic Corridor?Key Takeaways:— His remarks are significant given that a fragile ceasefire between Israel and Hamas is holding in Gaza after two years of intense fighting. Becoming the first Indian Prime Minister to address the Knesset, hours after he was received by counterpart Benjamin Netanyahu and his wife Sara at the Ben Gurion international airport in Tel Aviv, Modi mentioned the Palestine issue before Israel’s political leadership seated across the aisle.— He struck a chord with the Israeli lawmakers when he recalled the October 7 and 26/11 terror attacks in the same breath: “I also carry with me the deepest condolences of the people of India for every life lost and for every family whose world was shattered in the barbaric terrorist attack by Hamas on October 7. We feel your pain. We share your grief. India stands with Israel, firmly, with full conviction, in this moment, and beyond.”— “Terrorism aims to destabilise societies, to block development, and to erode trust. Countering terrorism requires sustained and coordinated global action, because terror anywhere threatens peace everywhere. That is why, India supports all efforts that contribute to durable peace and regional stability,” he said.— “Some years ago, when you concluded the Abraham Accords, we applauded your courage and vision. It was a moment of new hope for a long-troubled region. Since then, the situation has changed significantly. The path is even more challenging. Yet it is important to sustain that hope,” he said, in a reference to the US-brokered accord to normalise ties between Israel and the Arab world, and how the efforts were scuttled by the October 7, 2023 attacks on Israel by Hamas and the war in Gaza that followed.ALSO READ | UPSC Issue at a Glance | India AI Impact Summit 2026: Backdrop, key highlights, initiatives and concerns— Highlighting historical and cultural ties between India and Israel, dating back over 2,000 years, Modi flagged India’s economic growth and strategic partnership with Israel, including defence cooperation and technological collaboration. He also highlighted cultural exchanges, such as yoga and Ayurveda in Israel, and the establishment of 43 centres of excellence for agriculture in India.— Netanyahu, on his part, recalled the “Modi hug” at the airport, and described him as “more than a friend, a brother.” He said, “You stood next to Israel. You stood by Israel. You stood for Israel. You stood for the truth.”— India and Israel are set to elevate their strategic partnership Thursday, and are also expected to sign a series of agreements in the economic, security, and diplomatic spheres.Do You Know:— India recognised the state of Israel soon after it was created in 1948. The establishment of full diplomatic relations would take four more decades — but not before a defining moment involving an unlikely figure.— Palestinian President Yasser Arafat was in India on January 19-20, 1992. During a meeting with Prime Minister P V Narsimha Rao, he was told that India’s establishment of the relationship with Israel would be helpful for the Palestinian cause.— This would prove to be a game-changer. India formally established diplomatic ties with Israel on January 29, 1992, around 10 days after Arafat’s public approval.— By the time of the Kargil war in 1999, full diplomatic ties came in handy. The Indian Air Force (IAF) desperately needed precision bombs to target Pakistani intruders hiding in the caves and bunkers in Kargil’s mountains. After political approvals, IAF leaders reached out to their Israeli counterparts, who wasted no time. Israel is understood to have dug into its emergency stockpiles and shipped them to India’s air bases within days.— India responded to this decisive show of support by organising a series of high-profile visits to Israel in 2000, with external affairs minister Jaswant Singh leading the first-ever Indian bilateral visit to the country. Home minister L K Advani also visited that summer.— After coming to power in 2014, Modi has made the relationship much more visible. He met Netanyahu in New York on the sidelines of the UN General Assembly in September 2014 — the first such meeting in a decade.Other Important Articles Covering the same topic:With Israel and broader Middle East, a diplomacy less defensive, more realistIndia and Israel, trusted partners in times of needDefence ties to regional alignments: Why PM Modi is visiting Israel nowPrevious year UPSC Prelims Question Covering similar theme:(2) The term “two-state solution” is sometimes mentioned in the news in the context of the affairs of (UPSC CSE 2018)(a) China(b) Israel(c) Iraq(d) YemenPrevious year UPSC Mains Question Covering similar theme:“India’s relations with Israel have, of late, acquired a depth and diversity, which cannot be rolled back.” Discuss (UPSC CSE 2018)NATIONNext session, 3 languages in Class 6 — English can bear ‘foreign’ optionSyllabus:Preliminary Examination: Current events of national and international importanceMains Examination: General Studies-II: Issues relating to development and management of Social Sector/Services relating to Health, Education, Human ResourcesWhat’s the ongoing story: From the 2026-27 academic session onward, the Central Board of Secondary Education (CBSE) is set to implement the National Education Policy (NEP) 2020 and National Curriculum Framework for School Education (NCFSE) 2023 recommendations on introducing a third language — other than two Indian languages — to students in Class 6.Key Points to Ponder:— What are the features of the NEP 2020?— What is the objective of NEP?— What is the “three-language formula”?— What is the significance of the three-language formula in the education system?— Know about the debate regarding the three-language formula?— How significant is language in the development of culture and linguistic heritage of the country?— What are the provisions related to education in the constitution?— Is Education part of the Union list?Key Takeaways:— Official sources said English will be considered a “foreign” language. The NEP states that at least two of the three languages should be “native to India”.— For schools that teach English in Class 6, it will become the one “foreign” language that can be taught, in addition to two Indian languages, a source said.— If another foreign language is taught as the third language in Class 6, like French or German, it will have to be accompanied by two Indian languages, the source said.— This also paves the way for the third language to be made mandatory all the way until Class 10 in later years — the NCFSE recommends that all three languages continue in Classes 9 and 10.— The Class 10 Board examination in 2031 will require students to write an exam for the third language as well, unlike the current system of two languages, the source said.— Since the NCFSE specifies the proficiency that a student must acquire in the third language in the middle and secondary stages of school, textbooks aligned with these recommendations will have to be developed.— The Board will issue details soon, along with learning material. For the third language in Class 6, the CBSE is preparing learning material for nine languages for the 2026-27 academic session. This will include Tamil, Telugu, Malayalam, Kannada, Gujarati and Bangla, the source said.— The NCFSE states that a third language (R3) gets introduced in the middle stage (Classes 6-8) and requires an adequate amount of time to develop basic interpersonal communication skills.— The NCFSE specifies that “language education plays a crucial role in keeping students rooted to their country, as it allows individuals to connect with their culture, heritage, and society… India is a country with a rich linguistic heritage, comprising scores of languages with a great literary heritage… Exposure to two other languages (R2 and R3) will help students to become multilingual, appreciate unity in diversity, and thereby help form a national identity.”Do You Know:— In 1968, a national education policy (NEP) formulated by the Indira Gandhi-led Congress government had introduced the three-language formula. Centred on a Hindi-English fulcrum, the policy called for teaching a southern language in Hindi-speaking states and a regional language in non-Hindi-speaking states as the third language.— Since then the three-language formula has been an issue of intense dispute. In 1968, Tamil Nadu had opposed the policy and has since persisted with a two-language formula of its own.— The NEP only provides a broad direction and is not mandatory to follow. Since education is a concurrent subject (both the Centre and the state governments can make laws on it). The incumbent government has set a target of 2040 to implement the entire policy.Other Important Articles Covering the same topic:Dis/Agree: Don’t be fooled – ‘three-language formula’ is about imposing HindiWhy Tamil Nadu, Centre are clashing over New Education Policy’s 3-language formulaPrevious year UPSC Prelims Question Covering similar theme:(3) Which of the following provisions of the Constitution does India have a bearing on Education? (UPSC CSE 2012)1. Directive Principles of State Policy2. Rural and Urban Local Bodies3. Fifth Schedule4. Sixth Schedule5. Seventh ScheduleSelect the correct answer using the codes given below:(a) 1 and 2 only(b) 3, 4 and 5 only(c) 1, 2 and 5 only(d) 1, 2, 3, 4 and 5Previous year UPSC Mains Question Covering similar theme:National Education Policy 2020 is in conformity with the Sustainable Development Goal-4 (2030). It intends to restructure and reorient the education system in India. Critically examine the statement. (UPSC CSE 2020) THE IDEAS PAGEIndia’s recent defence surge is not a sign of militarism. it is a sign of maturitySyllabus:Preliminary Examination: Current events of national and international importanceMains Examination: General Studies-III: Government BudgetingWhat’s the ongoing story: Shashi Tharoor writes: In a welcome departure from past trends, the Union Budget 2026-27 has significantly bolstered its national security framework with a record allocation of Rs 7.85 lakh crore (approximately $86.7 billion), representing a robust 15.19 per cent increase over the previous year’s estimate of Rs 6.81 lakh crore ($81.2 billion).Key Points to Ponder:— What sector has the highest allocation in the Union Budget 2026?— What is the significance of public capital expenditure for the economy?— What is the Atmanirbhar Bharat initiative of the government in the defence sector?— What are the major defence agreements signed by the government in recent years?— Strategic autonomy requires credible national capability. Elaborate.— What do you mean by deterrence in international relations?Key Takeaways:— The primary engine of this growth is a 21.8 per cent surge in capital outlay, which has risen to Rs 2.19 lakh crore to accelerate military modernisation and the procurement of next-generation platforms like fighter aircraft, submarines, and drones.— Notably, the government has intensified its Atmanirbhar Bharat initiative by earmarking nearly 75 per cent of this modernisation fund for domestic procurement, while simultaneously boosting the revenue budget to Rs 3.65 lakh crore to ensure higher operational readiness and logistics following Operation Sindoor.— India’s defence spending has inevitably drawn some accusations abroad that New Delhi is fuelling an arms race in Asia. The charge is familiar: Any significant Indian military modernisation is cast by some as destabilising, provocative, or jingoist.— For years, India has lived with a dangerous mismatch between its strategic ambitions and its actual military preparedness. The deficiencies have been documented by parliamentary committees, military chiefs, and independent analysts.— Deterrence, after all, is not a matter of slogans or sentiment. It is a material condition rooted in capability. An adversary is deterred only when it believes that aggression will fail or cost more than it is worth. When a state underinvests in its own defence, it does not buy peace; it invites coercion.— India’s recent spending surge is therefore not a sign of belligerence but of responsibility: A recognition that credible deterrence cannot be built on hope, nostalgia, or the assumption that past restraint will automatically guarantee future stability.— This recognition is especially urgent because India’s security environment has grown more complex. Pakistan’s military posture remains tightly coupled to its nuclear strategy, designed to exploit any conventional imbalance. Its tolerance for risk, particularly under domestic political strain, is not something we can prudently bank on.— More troubling still is the growing diplomatic and military coordination between China and Pakistan — a two-front dynamic that India has long worried about but now confronts in increasingly tangible ways.ALSO READ | UPSC Essentials | Daily subject-wise quiz : Science and Technology MCQs on applications of critical minerals, Project Silica and more (Week 151)— Add to this the geopolitical uncertainty unleashed by Donald Trump’s Washington, whose global commitments are subject to transactionalism. India has no interest in being dependent on the whims of any external power, friendly or otherwise.— Strategic autonomy, if it means anything, requires credible national capability. A country that cannot defend its borders, protect its sea lanes, or absorb the first blow without collapsing into crisis is not strategically autonomous; it is merely exposed.— India inhabits a region in which our adversaries are alert to perceived weakness. Underinvestment creates the worst of both worlds — louder alarms without stronger locks. A weak India would encourage risk-taking by those who believe they can coerce or punish New Delhi at acceptable costs. The purpose of India’s current defence spending is to avoid that trap.— A more secure India ensures a more stable Asia. That is the simple but often overlooked truth. Stability does not come from wishful thinking or moral exhortation. It comes from capability — and from the quiet confidence that crises can be managed. The defence budget is a course correction.— If India does not get its defence right — if it continues to underinvest, delay, or defer — we risk increased insecurity without the stabilising effect of real capability. The real danger is not that India is doing too much. It is that, for too long, we did too little.— India’s recent defence surge is not a sign of militarism. It is a sign of maturity — the maturity to recognise that peace is preserved not by the absence of arms but by the presence of credible deterrence. Deterrence consolidation is the foundation of stability in a region where the margin for error is shrinking. India is finally taking real responsibility for its own security.Do You Know:— According to a statement from the Ministry of Defence, during 2025-26, up to December 2025, it concluded contracts worth Rs 2.10 lakh crore and has, so far, given Acceptance of Necessity approval for more than Rs 3.50 lakh crore.— The government allocated Rs 1.39 lakh crore, ie, 75 per cent of the Capital Acquisition budget for procurement from domestic industries during FY 2026-27.— In 2025-26, the government allocated Rs 6.81 lakh crore to the defence budget, which was six per cent higher than the revised estimate for 2024-25.— With the government maintaining that Operation Sindoor is still ongoing and preparations underway in terms of stocking up the military with additional platforms as well as with fuel, ammunition, and procurement of critical spares and other capabilities to maintain the assets, Rs 3.6 lakh crore has been earmarked as the Indian military’s sustenance budget for 2026-27, up by 17 per cent from the previous fiscal.— The budget for defence pensions stands at Rs 1.7 lakh crore for the upcoming financial year, to be spent on disbursing monthly pensions to more than 34 lakh pensioners through SPARSH and other pension disbursing authorities. The outlay on research and development has been raised to Rs 0.17 lakh crore in 2026-2027, from Rs 0.14 lakh crore in the previous fiscal.Other Important Articles Covering the same topic:Union Budget 2026 : Key highlights for UPSC and other competitive examsFirst budget after Op Sindoor: India hikes defence budget by 15% to Rs 7.85 lakh crore, capital outlay by 22%First budget after Op Sindoor: India hikes defence budget by 15% to Rs 7.85 lakh crore, capital outlay by 22%Previous year UPSC Prelims Question Covering similar theme:(4) With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure? (UPSC CSE 2014)1. Defence expenditure2. Interest payments3. Salaries and pensions4. SubsidiesSelect the correct answer using the code given below.(a) 1 only(b) 2 and 3 only(c) 1, 2, 3 and 4(d) NoneEXPLAINED HPV vaccine drive is key to battling cervical cancerSyllabus:Preliminary Examination: Current events of national importance.Mains Examination: General Studies-II: Issues relating to development and management of Social Sector/Services relating to Health, Government policies and interventions.What’s the ongoing story: The Union government is set to roll out a nationwide single-dose human papillomavirus (HPV) vaccination campaign for 14-year-old girls to reduce India’s high burden of cervical cancer.Key Points to Ponder:— What is HPV infection?— Know about the Human Papillomavirus and cervical cancers.— How common is cervical cancer in India?— How does the vaccine prevent cancers?— What vaccine is being used?— Why is an HPV vaccination campaign important?Key Takeaways:— Cervical cancers are the second most common type of cancer among women in India. Almost 90% of all cervical cancers are caused by persistent HPV infection, making it one of the two types of vaccine-preventable cancers (the other is liver cancer).— HPV infection is also linked to anal, penile, vaginal, vulvar and throat cancers — the incidence of which is also likely to come down with vaccination.— HPV is a common, sexually-transmitted infection. Only certain forms of the virus progress to cancer. HPV immunisation in the teenage years — when girls are going through puberty but are not sexually active — results in better and longer immunity.— The 90-day vaccination campaign, likely to be rolled out in a matter of days, will be open to all 14-year-old girls in the country. Eligible girls will need to book a slot at government health centres using the vaccine management platform U-win — just like people used Co-Win during the Covid-19 pandemic.— Vaccinations will not end after the 90-day period. The programme will continue at health and wellness centres alongside the country’s routine immunisation framework. Girls who keep turning 14 each year will be able to access the shot this way. An estimated 1.15 crore girls turn 14 every year in India.— There are at least 14 types of HPV that can potentially cause cancer. Among these, HPV types 16 and 18 are considered to be the most likely to lead to tumour development, causing about 70% of all cervical cancer cases globally. The vaccines work by preventing the entry of two, four or nine of the most common types of HPV.— Though India has an indigenously developed HPV vaccine, which will likely be cheaper, the government will use the proven Gardasil by MSD Pharmaceuticals during this phase of immunisation.— This is because the Serum Institute of India’s Cervavac is yet to receive WHO approval and the ICMR is still studying its single-dose effectiveness.— For the current campaign, the GAVI Vaccine Alliance (a global public-private partnership) will provide India 2.6 crore doses that should be sufficient for two years. Of these, one crore doses are already in India, with the rest being delivered through this year and the next.ALSO READ | What makes bats important reservoirs of zoonotic viruses like Nipah— India accounts for a fifth of global cervical cancer cases. Within the country, it continues to be the second most common cancer among women, affecting 1.25 lakh and killing 75,000 each year.— While earlier evidence has shown that the vaccine is effective at reducing HPV infection and pre-cancerous lesions, studies have since demonstrated that it also reduces the incidence of cancer. Importantly, universal immunisation of girls also reduces the transmission of the infection to boys and protects them from other cancers.— While the incidence of cervical cancer in India has been declining over the years, a drastic drop in numbers will not only bring down the mortality but also free up overburdened doctors and hospitals for the treatment of other cancers. The world’s first HPV vaccine was approved in 2006, with nearly 158 countries introducing an immunisation programme.Do You Know:— Notably, states such as Sikkim, Punjab, and Delhi have previously attempted to introduce the HPV vaccine. Sikkim was the first to roll out a state-wide campaign in 2018, achieving more than 95% coverage for two doses.— In 2016, Punjab rolled out a vaccination campaign in Mansa and Bhatinda districts that was later expanded to some other high-burden districts. The coverage was over 97% during the initial phase. Delhi also rolled out an HPV vaccination campaign in 2016 from its standalone cancer hospital, Delhi State Cancer Institute. The programme, however, did not pick up pace as it required girls to come to the hospital and seek vaccination.Other Important Articles Covering the same topic:Centre to soon roll out HPV vaccination drive for girls aged 14UPSC Prelims Practice Question Covering similar theme:(5) Consider the following statements:1. Cervical cancer is a common sexually transmitted infection.2. Long-lasting infection with certain types of HPV is the main cause of cervical cancer.3. Cervical cancer is the second most common cancer type.How many of the statements given above is/are correct?(a) Only one(b) Only two(c) All three(d) NoneTrump says US economy is booming. The data is mixedSyllabus:Preliminary Examination: Current events of national and international importance.Mains Examination: General Studies-II, III: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora, Effects of liberalization on economy.What’s the ongoing story: US President Donald Trump doubled down on his economic policy agenda as he delivered the latest State of the Union (SOTU) address to the US Congress on Tuesday. Trump said that the US “is back, bigger, better, richer and stronger than ever before” and asserted that “the golden age of America is upon us”.Key Points to Ponder:— What was the rationale behind imposing reciprocal tariffs by the Trump administration?— How is tariff collection enforced in the US?— What tariffs did the US Supreme Court strike down?— What is the International Emergency Economic Powers Act (IEEPA)?— What is Section 122 of the Trade Act of 1974?— How does Trump’s tariff impact the Indian economy?— What are the areas of cooperation between India and the USA?— Know about the interim trade framework between India and the USA.Key Takeaways:— The SOTU is a constitutionally-mandated event where a US President is supposed to provide a snapshot of how the country is faring across different areas of concern. Typically this happens once every year.— This SOTU comes at a time when Trump’s approval ratings have taken a heavy beating, and the Republican Party (to which Trump belongs) has seen several electoral losses to Democrats since November last year. To make matters worse, the US Supreme Court, which has many justices appointed by Trump, has just recently ruled the bulk of his tariffs illegal — a decision that has embarrassed him and forced him to work with the US Congress on the issue of imposing tariffs.— Worsening public perception of Trump’s presidency could end up hurting the Republicans in the midterm elections in the US Congress in November. If the Democrats can flip majorities in the House of Representatives and the Senate in November, it could not only spell the death-knell for Trump’s policy agenda for the rest of his term but also open him up for impeachment proceedings.— In other words, the SOTU was Trump’s big opportunity to tell the American public that his policies are working for them.— Trump’s address on the economy can be broken into four broad categories:1. Affordability & Welfare: A key reason why Americans voted Trump back to office in 2024 — after rejecting him at the end of his first term in 2020 — was the high cost of living during President Biden’s term, which saw inflation rise to historic levels. By the time Trump won, the inflation rate had simmered down to less than 3%. However, the deceleration in the inflation rate reversed after Trump announced “reciprocal” tariffs in April last year, and since then, inflation has remained sticky. Higher prices were essentially because of higher tariffs, as more than 90% of all tariffs were paid by American consumers and companies.— Higher-than-anticipated inflation also caused the US Federal Reserve (their central bank) to maintain interest rates at elevated levels, thus hurting borrowers (be it for homes or cars).2. Economic Output and Growth: Trump has repeatedly claimed that under Biden, the US was a “dead” economy and is now the “hottest” one. While the US has continued to expand at an enviable pace, given the fact that it is the world’s largest economy. However, contrary to Trump’s claims, the GDP growth rate moderated in 2025.3. Employment: Between the Trump administration’s crackdown on immigrants and, more broadly, on immigration, coupled with the effect of Artificial Intelligence in the workplace, employment in the US economy has remained in a “low hire and low fire” zone.4. Tariffs: After the snub by the Supreme Court, a rational course of action for Trump would have been to relinquish his tariff agenda. After all, it was hurting both the American consumers as well as Trump’s own political standing without even achieving its primary goal: the reduction in the US trade deficit.From the Explained Page- “With IEEP a tariffs ruled illegal, who can claim refunds, and how”— When the US Supreme Court struck down Donald Trump’s sweeping tariffs on American trading partners on Friday (February 20), it did not specify how the US would go about issuing an estimated $175 billion in refunds to importers.— In a dissenting opinion, Justice Brett Kavanaugh, a Trump appointee, warned that the refund process would likely be a “mess”.— This has also been a point of contention repeatedly raised by the Trump administration, with the President himself criticising the court for both its ruling and this omission at a press conference on Friday. He subsequently unveiled a fresh set of duties under a different law.— Treasury Secretary Scott Bessent, who previously acknowledged that an adverse court ruling would mean refunds for importers, has pointed to the lower courts for the way forward.— The US Customs and Border Protection (CBP) is entrusted with enforcing the regulations at the country’s 330 entry points under the Treasury Secretary’s directive. Every importer posts a bond with the CBP and pays an estimated tariff on their consignment. The tariff revenue collected is thus deposited in the Treasury Department’s General Fund.— If the CBP rules that goods arriving in the US were ‘transshipped’, meaning they were transported through a country with a relatively favourable tariff rate, those will be subjected to a 40% tax and additional penalties.— The government makes a final determination of the tariffs on these goods through a process called liquidation, usually 314 days after the goods have entered the US. Any excess payments will be refunded, or the importer will be charged the shortfall.— According to court filings, the Department of Justice (DoJ) said that refunds would be initiated if the tariffs were deemed unlawful. The CBP would process these through its Automated Commercial Environment System.Small importers would be disproportionately affected since legal recourse would prove to be more expensive than continuing their current operations.— Despite the Trump administration’s claims, the actual process of refunding the money should not be complicated. Importers have noted that the Customs paperwork, specifically the Entry Summary form, clearly details the tariffs they pay on the goods brought into the US.— Importers would need to file a protest against their liquidated entries using the Entry Summary form, which directly links each shipment to the duties paid. However, the sheer volume of such forms with hundreds of thousands of importers would likely draw out the refunds over the next 12-18 months in processing time.— The Trump administration would likely be the major impediment to a smooth refund process, with Bessent telling the Supreme Court that unwinding refunds — which he put at $750 billion to $1 trillion — could cause “significant disruption”. The Executive Order revoking the IEEPA tariffs also used deliberately vague language on the timeline – “as soon as practicable”.Other Important Articles Covering the same topic:What are Section 122 tariffs and how will they differ from Trump’s earlier tariffs?Despite US tariffs hike to 15%, most countries better off: Where India, others standPrevious year UPSC Mains Question Covering similar theme:‘What introduces friction into the ties between India and the United States is that Washington is still unable to find for India a position in its global strategy, which would satisfy India’s National self-esteem and ambitions’. Explain with suitable examples. (UPSC CSE 2019)ALSO IN NEWSWill not let anyone defame institution: CJI on NCERT bookTaking note of a report by The Indian Express that the new Social Science textbook for Class 8 by National Council of Educational Research and Training (NCERT) includes a section on “corruption in the judiciary”, Chief Justice of India (CJI) Surya Kant Wednesday took serious exception to the content and said he “will not allow anyone on earth to play with the integrity and to defame the institution”.The Supreme Court later registered a suo motu case “In Re: Social Science Textbook For Grade – 8 (Part – 2) Published By NCERT and Ancillary Issues” in the matter. On Thursday, the SC imposed a complete ban on further publication, printing or digital dissemination of NCERT class 8 book.LS Speaker reconstitutes panel probing charges against Justice Varma in cash recovery caseLok Sabha Speaker om birla on Wednesday reconstituted a three-member committee set up to probe the grounds for the removal of Justice Yashwant Varma after burnt wads of cash were recovered from his Delhi residence in March last year. The Speaker had constituted the committee on August 12 last year after admitting a multi-party notice for the removal of the Allahabad high Court judge, setting in motion the process of his impeachment.Bangladesh backed a key reforms charter. Implementing it will be a challengeWith around 70% of Bangladesh’s electorate voting “yes” to this document, called the July National Charter, the 300 new MPs were also assigned a second oath for the new Constitutional Reform Council.The charter, about half of whose 80 proposed reforms are constitutional in nature, is a key part of Bangladesh’s journey towards a reformed polity. The rift at the very beginning of this path raises questions about the BNP’s outlook towards these proposed reforms.The July National Charter referendum came in for criticism, including from the BNP, over its lack of nuance. Voters were given a blanket “yes” or “no” choice for a document that proposes at least 80 constitutional and legal changes.But the party is also cognisant that the February 2026 polls represented a mandate for reform — not just through the July charter but also its manifesto, which contains its own set of distinct reforms for Bangladesh’s polity. Some aspects of the manifesto, such as reintroducing “Absolute trust and faith in Almighty Allah” in the Constitution, do not find a mention in the charter. PRELIMS ANSWER KEY1. (d) 2. (b) 3. (d) 4. (c) 5. (c)Subscribe to our UPSC newsletter. Stay updated with the latest UPSC articles by joining our Telegram channel – IndianExpress UPSC Hub, and follow us on Instagram and X. Click Here to read the UPSC Essentials magazine for February 2026. Share your views and suggestions in the comment box or at manas.srivastava@indianexpress.com