UPSC Current Affairs Quiz : 25 March 2026

Solution: A

• Statement I is correct. The RoDTEP scheme, which replaced the Merchandise Exports from India Scheme (MEIS), was specifically designed to be WTO-compliant. Its predecessor, MEIS, was challenged at the WTO because it was seen as an export subsidy rather than a simple tax remission.
• Statement II is correct and provides the underlying reason for Statement I’s correctness. The WTO allows for the remission of duties and taxes on inputs used in the production of exported goods, provided the remission does not exceed the actual taxes paid. RoDTEP strictly follows this “taxes should not be exported” principle by refunding embedded costs—such as VAT on fuel used in transport, electricity duty, and Mandi tax—which are not covered under GST or Duty Drawback.

By ensuring that the refund is a mathematical remission of actual costs incurred rather than an arbitrary incentive, the Indian government shields its exporters from potential “countervailing duties” or legal challenges in international trade forums. This makes Indian goods more price-competitive globally while adhering to the legal framework of international trade.

Solution: B

• Statement 1 is incorrect. Infrastructure Investment Trusts (InvITs) like RIIT are primarily designed to monetize completed, income-generating assets. The core purpose is to transfer “toll-ready” roads from the NHAI to the Trust to raise upfront capital. Greenfield projects (new constructions) involve high risk and no immediate cash flow, making them unsuitable for the primary monetization function of an InvIT until they are operational.
• Statement 2 is correct. Under SEBI (Infrastructure Investment Trusts) Regulations, 2014, these trusts are required to distribute a significant portion (typically at least 90%) of their net distributable cash flows to the unit holders. This ensures a steady stream of income for investors, making it an attractive long-term investment.
• Statement 3 is correct. An InvIT is essentially a collective investment vehicle that pools money from various investors (both retail and institutional) to invest in infrastructure. It operates on a structure similar to a Mutual Fund or a Real Estate Investment Trust (REIT), providing liquidity to the infrastructure sector while allowing individual investors to own units of massive assets like National Highways. This helps the government unlock equity to reinvest in further infrastructure development.

Solution: C

• Statement 1 is incorrect. While the ISPRL (Indian Strategic Petroleum Reserve Limited) does manage the reserves, it was created under the Oil Industry Development Board (OIDB), which falls under the Ministry of Petroleum and Natural Gas, not the Ministry of Power.
• Statement 2 is correct. India’s SPRs utilize underground rock caverns. This method is safer than above-ground tanks as it is protected from external strikes and natural disasters. Hydrostatic containment uses the pressure of surrounding groundwater to ensure the oil remains trapped within the unlined cavern, preventing leaks.
• Statement 3 is correct. India is an Associate Member of the IEA. The IEA standard for energy security suggests that member nations should hold emergency oil stocks equivalent to at least 90 days of net imports. Currently, India’s own SPR capacity covers about 9.5 days, supplemented by stocks held by domestic refineries.
• Statement 4 is correct. Phase-I included Visakhapatnam, Mangaluru, and Padur. The Phase-II expansion focuses on adding capacity at Chandikhol in Odisha and additional capacity at Padur in Karnataka to enhance the nation’s energy sovereignty against global supply shocks.

Solution: D

The Nilgiri Tahr (Nilgiritragus hylocrius) is an endangered ungulate endemic to the Western Ghats.

• A matches with 2: Adult males are known as “Saddlebacks” because they develop a distinct, light-colored patch on their backs as they mature. This is a key feature of sexual dimorphism in the species, where males are also larger and darker than females.
• B matches with 3: The social structure of the Nilgiri Tahr involves living in groups called “droves.” These groups typically consist of several adult females and their offspring, often led or accompanied by a dominant male.
• C matches with 1: The Tahr is exceptionally agile. Its preferred habitat includes cliffs and crags (steep, rocky areas). They utilize these inaccessible heights as “escape terrain” to flee from predators like tigers and leopards, which cannot navigate the vertical rock faces as effectively.

The species is primarily found in the high-altitude shola-grassland ecosystems. The restoration of habitats like the Chokramudi hills in Munnar is crucial for their survival, as these hills serve as natural corridors between larger protected areas like Eravikulam National Park.

Solution: A

• Statement 1 is correct. The Aghanashini River originates at Sirsi in the Shankara Tirtha of the Heggarne forest. It is a pristine, free-flowing river that is notable for being largely undammed and free from significant industrial pollution. It flows entirely through Karnataka and empties into the Arabian Sea at Tadri.
• Statement 2 is correct. The Vedavathi River is formed by the confluence of the Veda and Avati streams, which originate in the Bababudangiri It flows east and eventually joins the Tungabhadra River, which is a major tributary of the Krishna River. Thus, it is part of the larger Krishna River system.
• Statement 3 is incorrect. While the Aghanashini is a west-flowing river that drains into the Arabian Sea, the Vedavathi is an east-flowing river. As a tributary of the Tungabhadra (and subsequently the Krishna), its waters eventually flow into the Bay of Bengal.
• The proposed Aghanashini–Vedavathi river-linking project aims to divert water from the surplus, west-flowing Aghanashini to the water-deficit, east-flowing Vedavathi. This project has faced scrutiny from UNESCO due to the ecological sensitivity of the Aghanashini’s free-flowing nature and its impact on World Heritage Conservation norms.

Solution: B

• Pair 1 is correctly matched. Drug-Resistant TB (which includes MDR-TB and XDR-TB) refers to strains of Mycobacterium tuberculosis that have developed resistance to standard treatments. Multidrug-resistant TB (MDR-TB) specifically does not respond to at least isoniazid and rifampicin, the two most powerful first-line drugs.
• Pair 2 is incorrectly matched. In Latent TB, the person has the bacteria in their body, but the immune system prevents them from multiplying. Therefore, the person is not symptomatic (correct) but cannot spread the disease (incorrect in the pair). A person with Latent TB is not infectious.
• Pair 3 is correctly matched. Active TB occurs when the immune system can no longer contain the bacteria. The bacteria multiply, causing tissue damage (usually in the lungs). The person becomes symptomatic (fever, weight loss, cough) and can spread the bacteria to others through the air.
• WHO End TB Strategy, which aims for a 90% reduction in incidence by 2035. Proper diagnosis of Latent cases prevents them from progressing to Active cases, while managing Drug-Resistant cases requires more expensive and prolonged second-line antibiotic regimens.

Solution: C

The Model Context Protocol (MCP) is an open-source standard originally introduced by Anthropic and later adopted for various implementations, including by the Government of India for the e-Sankhyiki portal.

Option (c) is the correct description. The primary aim is to eliminate data silos. Currently, AI models like ChatGPT or Gemini are “frozen” in time based on their training data. By using MCP, these models can “plug into” a live database (the Server). When a user asks a question about current economic figures, the AI uses the protocol to fetch the latest available statistics from the portal.

This is significant for several reasons:

1. Accuracy: It reduces “hallucinations” by providing ground truth.
2. Governance: It democratizes access to official statistics, allowing policymakers and the public to query complex datasets using simple chat interfaces.
3. Universal Integration: Since it is an open standard, any developer can build an MCP server. A single server (like the e-Sankhyiki one) can allow multiple different AI tools to access the same verified data simultaneously. It does not aim to replace humans (Option a), nor is it about encryption (Option b) or creating a proprietary system (Option d).

Solution: B

Explanation:

• Statement I is correct. The Nilgiri Tahr (Nilgiritragus hylocrius) is indeed the state animal of Tamil Nadu and the only caprine (mountain goat/antelope) found in the tropical region of India. It is endemic to the Western Ghats, meaning it is found nowhere else in the world. Its range is restricted to a narrow stretch between the Nilgiri Hills and the Kanyakumari hills.
• Statement II is correct. Their habitat is highly specific: high-altitude shola-grassland They are known for their incredible agility on steep, rocky cliffs (crags), which they use as escape terrain to avoid predators like leopards.
• However, Statement II does not explain why they are the only caprine in tropical India (Statement I). The presence of only one caprine species in this region is a result of evolutionary history and biogeography (specifically the isolation of the Western Ghats), whereas Statement II describes their current ecological preferences and survival strategies.
• Therefore, while both statements are individually true, the second is not a causal explanation for the first. The Nilgiri Tahr’s IUCN status is Endangered, primarily due to habitat fragmentation and the loss of these specific grassland-shola corridors.

Solution: A

• Statement-I is correct because Diego Garcia is the largest atoll in the Chagos Archipelago and hosts a joint U.K.-U.S. military base. Its location allows for surveillance and rapid response across the Strait of Hormuz, Malacca Strait, and Bab-el-Mandeb, which are vital global trade chokepoints.
• Statement-II is also correct and provides the geological and logistical reason why the island is so valuable. As part of the Chagos-Laccadive Ridge, it is an atoll with a unique “footprint” shape. The central deep-water lagoon acts as a natural protected harbor, allowing the U.S. Navy to dock massive aircraft carriers and submarines. Furthermore, its geographic isolation provides a security buffer.
• The link between the two statements is direct: the physical geography (the lagoon and location on the ridge) is what enables the military strategic utility (projection of power).
• Therefore, Statement-II explains why Statement-I is possible.

Solution: D

• CGSMFI-2.0 was launched in March 2026 to stabilize the microfinance sector. Statement 1 is incorrect because the scheme uses a tiered guarantee structure. It provides 80% coverage for small MFIs, 75% for medium, and 70% for large ones. This design prioritizes smaller players who often face higher credit risks and lack the collateral of larger institutions.
• Statement 2 is correct. The NCGTC acts as the trustee and manager, providing the financial cushion to Member Lending Institutions (MLIs) like banks. This encourages banks to lend to MFIs by mitigating the risk of default.
• Statement 3 is correct. A key conceptual goal of the scheme is affordable credit. Microfinance Institutions receiving this support must cap their lending rates to the public at 1% below their average lending rate of the previous six months. Additionally, the bank-to- Microfinance Institution loan rate is capped at EBLR/MCLR + 2%. This ensures that the benefit of the government guarantee is passed down to the 36 lakh targeted small borrowers, promoting rural economic stability and financial inclusion.