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.
US Secretary of State Marco Rubio began his second India visit of the year in Mumbai on 20 October 2026 and met External Affairs Minister S. Jaishankar on trade, energy, technology and defence. Rubio said the two sides are ‘very, very close’ to a trade deal with ‘a small number of items left’, and praised India’s progress in diversifying energy supplies.
UPSC angle: Prelims: I2U2, Jamnagar, key office holders. · Mains GS-II: India-US partnership, tariffs and strategic autonomy.
20 Oct 2026
The India–New Zealand Free Trade Agreement came into force on 20 October 2026. From day one, New Zealand charges no customs duty on any Indian export, the first time India has got full duty-free access on all tariff lines at entry into force. New Zealand has also committed to facilitate USD 20 billion of investment into India, while dairy, sugar and edible oils stay protected.
UPSC angle: Prelims: FTA dates, Centres of Excellence, visa quotas, TRQ items. · Mains GS-II/III: FTAs with developed economies and farm safeguards.
20 Oct 2026
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