External Sector (Indian Economy).
Syllabus: UPSC Pre GS1: Economic & Social Development; Mains GS3
WTO for UPSC: GATT to WTO, MFN and national treatment, Agreement on Agriculture boxes, TRIPS, dispute settlement crisis, public stockholding, fisheries, PYQs.
Globalisation for UPSC: meaning and drivers, India's 1991 LPG reforms, effects on economy, jobs, women, farms and culture, and deglobalisation.
On 19 October 2026 China’s Commerce Ministry announced export controls on tunnel boring machines (TBMs) and related items from 18 November, calling them clearly dual-use. India imports TBMs for metro, rail and border tunnels and has faced customs delays on Chinese machines since 2024. China also announced controls on some drones.
UPSC angle: Prelims: export control regimes, SCOMET, Wassenaar, MTCR. · Mains GS-II/III: China dependence and supply-chain resilience.
19 Oct 2026
India's merchandise exports rose 23.04% to US$ 44.40 billion in September 2026, data released by the Commerce Ministry on 15 October show. Imports were US$ 74.61 billion, leaving a goods trade deficit of US$ 30.21 billion. Counting services, exports reached about US$ 80.75 billion and the combined deficit was US$ 13.30 billion.
UPSC angle: Prelims: merchandise vs services trade, trade deficit vs current account deficit. · Mains GS-III: export diversification and the external sector.
15 Oct 2026
The 16th India-UK Joint Economic and Trade Committee (JETCO) met in New Delhi on 12 October 2026. It was the first JETCO since CETA talks began in January 2022. Both sides reviewed early trade under CETA, agreed to share data every year on its use, and fixed the 17th JETCO for the UK in 2027.
UPSC angle: Prelims: JETCO, CETA, eCoO 2.0, tariff-rate quota. · Mains GS-II/GS-III: India-UK relations; FTAs and exports.
12 Oct 2026
On 10 October 2026 RBI issued two circulars to curb speculation in the rupee: cancelled INR forex derivatives cannot be rebooked, the no-proof hedging limit falls from USD 100 million to USD 5 million, and banks must keep a 20% cash reserve on large dollar-buying hedges. RBI also opened a dollar window for three public sector oil companies.
UPSC angle: Prelims: FERR, USD 5 mn, OMC window, FEMA. · Mains GS-III: exchange rate management, external sector.
10 Oct 2026
The 15th Joint Committee reviewing the ASEAN-India Trade in Goods Agreement met in Jakarta from 6 to 9 October 2026, co-chaired by India and Malaysia. It told all sub-committees to speed up pending chapters with firm, time-bound deliverables. Three of eight sub-committees met, including rules of origin. The next meeting is in India in January 2027.
UPSC angle: Prelims: ASEAN members, AITIGA. · Mains GS-II: regional groupings; GS-III: trade policy.
9 Oct 2026
At the G20 Trade Ministers' Meeting in Milwaukee, USA, concluding on 2 October 2026, India said it has no structural excess capacity in the sectors named by the G20 Presidency. It argued that trade distortions should be handled through WTO-consistent anti-dumping and countervailing duties, backed MFN and consensus, and wanted the two-tier dispute settlement system restored.
UPSC angle: Prelims: MFN; anti-dumping vs countervailing duty. · Mains: Is the MFN principle under threat?
2 Oct 2026