UPSC CARE Mains Practice 4th February 2026
Mains Practice Questions for the Day
- The India–US Trade Deal represents both an economic opportunity and a strategic test for India’s foreign policy.” Examine the opportunities and challenges associated with the tariff reduction, and suggest measures to maximise its benefits. (GS Paper II – International Relations – India-USA Trade Deal)
- Examine how recent policy initiatives, including the Biopharma SHAKTI announced in Budget 2026–27, aim to transform India into a global biopharma hub. Discuss the opportunities and challenges involved. GS Paper II (Governance & Health Policy)
The India–US Trade Deal represents both an economic opportunity and a strategic test for India’s foreign policy.” Examine the opportunities and challenges associated with the tariff reduction, and suggest measures to maximise its benefits. (GS Paper II – International Relations – India-USA Trade Deal)
Introduction:
The reduction of United States tariffs on Indian goods to 18% marks a significant shift in bilateral trade relations. Beyond a commercial arrangement, the deal reflects deepening geopolitical alignment in the Indo-Pacific and the restructuring of global supply chains. However, it simultaneously tests India’s ability to balance economic gains with strategic autonomy.
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Opportunities
1. Boost to Export Competitiveness
Lower tariffs enhance the price competitiveness of Indian sectors such as textiles, pharmaceuticals, engineering goods, and gems & jewellery, potentially expanding market share in the world’s largest consumer economy.
2. Friendshoring and Supply Chain Diversification
As firms seek alternatives to China, India can position itself as a trusted manufacturing hub, attracting foreign investment and technology transfers.
3. Strategic Technology Collaboration
Partnerships under initiatives like critical and emerging technologies can accelerate India’s progress in semiconductors, artificial intelligence, and defence manufacturing.
4. Energy Security Partnerships
Increased imports of US energy diversify supply sources and reduce overdependence on volatile regions.
Challenges
1. Strategic Autonomy Concerns
Reducing Russian oil imports may strain long-standing ties with Moscow, challenging India’s multi-alignment doctrine.
2. Domestic Sector Vulnerability
Greater market access for US agricultural products could expose small farmers and MSMEs to subsidised competition.
3. Transactional Nature of Trade Diplomacy
Reciprocal concessions suggest a quid-pro-quo framework, potentially limiting India’s policy flexibility.
4. Continued Non-Tariff Barriers
Sanitary standards, intellectual property pressures, and digital trade disagreements may still restrict Indian exports.
Way Forward
• Adopt calibrated tariff liberalisation with safeguards for sensitive sectors.
• Accelerate manufacturing competitiveness under Make in India.
• Diversify export markets to avoid overdependence on a single partner.
• Invest in renewable energy to maintain strategic flexibility.
• Strengthen trade negotiation capacity to secure balanced agreements.
Conclusion:
The India–US trade deal is a strategic milestone that can propel India’s economic transformation if leveraged prudently. The true challenge lies in harmonising economic integration with strategic independence, ensuring that India emerges not merely as a trading partner but as a decisive global economic power.
Examine how recent policy initiatives, including the Biopharma SHAKTI announced in Budget 2026–27, aim to transform India into a global biopharma hub. Discuss the opportunities and challenges involved. GS Paper II (Governance & Health Policy)
Introduction:
India’s pharmaceutical sector has traditionally been dominated by low-cost generic medicines. However, with the rising global demand for biologics and biosimilars driven by non-communicable diseases, the Union Budget 2026–27 marks a strategic shift by positioning biopharma as a core pillar of India’s healthcare and manufacturing strategy. The announcement of Biopharma SHAKTI reflects India’s ambition to capture 5% of the global biopharmaceutical market and move up the pharmaceutical value chain.
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Policy Push towards a Global Biopharma Hub
- Biopharma SHAKTI (₹10,000 crore) aims to strengthen end-to-end capabilities in biologics and biosimilars by focusing on manufacturing scale, skilled manpower, clinical trials, and regulatory reforms.
- Expansion and upgradation of NIPERs addresses the shortage of specialised human resources.
- Creation of 1,000+ accredited clinical trial sites enhances India’s position as a global destination for ethical and cost-efficient trials.
- Strengthening CDSCO improves regulatory credibility and alignment with global standards.
Complementary Ecosystem Support
- National Biopharma Mission (NBM) and BIRAC have supported indigenous vaccines, biosimilars, diagnostics, and startups, fostering innovation and affordability.
- Manufacturing-focused schemes such as PLI for pharmaceuticals, Bulk Drug Parks, and SPI enhance supply chain resilience.
- PRIP, BioE3 Policy, and Bio-RIDE Scheme promote advanced R&D, biomanufacturing, and bio-entrepreneurship.
Opportunities
- Affordable biologics improve access to advanced healthcare.
- High-skilled employment generation and export competitiveness.
- Reduced import dependence and technological self-reliance.
Challenges
- High R&D costs and long gestation periods.
- Regulatory complexity and biosafety concerns.
- Need for sustained investment in quality assurance and IP protection.
Conclusion:
India’s biopharma strategy reflects a coherent, long-term policy vision integrating innovation, manufacturing, regulation, and skill development. If effectively implemented, initiatives like Biopharma SHAKTI can transform India from a generic drug supplier into a globally competitive, innovation-driven biopharma hub, strengthening both public health outcomes and economic growth.
