CIVIL SERVICE INFO

TAX HEAVEN COUNTRIES AND INDIA About 60% of India's outward FDI in 2024-25 went to low-tax jurisdictions, commonly called "tax havens," such as Singapore, Mauritius, UAE, Netherlands, UK, and Switzerland. Key Insights - Nearly 56% of India's foreign direct investments in 2024-25 were routed through these tax havens, with the rest going to standard destinations or "other low-tax countries" as per RBI data[1]. - Indian companies use these jurisdictions strategically—not just for tax savings but to improve global presence, ease of operations, and investment structure flexibility. - accounted for the bulk of tax haven FDI destinations. - Investment through tax havens allows easier cross-border movement of funds and greater protection from regulatory risks and tariff wars. Expert Views and Rationale - Experts say outward FDI to tax havens is often a strategic choice, not just for evading taxes but for better efficiency, ease in fund movement, and lega...

GEN Z AND NEPAL Gen Z protests in Nepal forced democratic changes in September 2025, leading to the resignation of Prime Minister K.P. Sharma Oli, the dissolving of Parliament, and the appointment of an interim government tasked with organizing new elections by March 2026.    Why Did Gen Z Protest? - Many young Nepalis were frustrated by poor job opportunities, widespread corruption, and government inaction.  - The government’s ban on 26 social media platforms triggered sharp opposition, as youth relied on these for communication and activism.  - Unlike past protests, Gen Z’s movement was decentralized, mobilized via platforms like Instagram and Discord rather than established political parties.  How Were These Protests Different? - Gen Z activists rejected traditional party affiliations and focused on clear, short-term goals—such as removing the aging political leadership and demanding a technocratic interim government.  - The protests evolved ...

Nepal Crisis  Nepal is facing a severe political and democratic crisis after violent protests led mostly by Gen Z demonstrators. The unrest, triggered by a deadly crackdown that killed 19 protesters, escalated into mobs torching Parliament, the Supreme Court, politicians’ residences, and media offices, while also releasing prisoners. Prime Minister K.P. Oli’s resignation exposed widespread frustration with decades of instability, corruption, and failed governance since the 2005 Jan Andolan II movement that ended monarchy.   Nepal’s youth, disillusioned by unemployment, mass migration, reliance on remittances, and failed political leadership, now back new forces like the Rashtriya Swatantra Party and independent leaders such as Kathmandu Mayor Balendra Shah. However, some of these figures risk undermining democracy with extreme positions, such as advocating the dissolution of Parliament.   The crisis underscores the danger of violent nihilism replacing democratic...

INDIA - JAPAN RELATIONS India-Japan relations are strengthening as both countries pursue new strategic priorities, including major infrastructure investment and security cooperation, while balancing broader regional dynamics and global uncertainties[1]. ## Investment and Economic Cooperation Japan has announced a significant investment plan involving ¥3 trillion (about $68 billion) in India over the next decade, which is aimed at boosting infrastructure, manufacturing, clean energy, and technology[1]. This commitment signals Japan’s long-term stake in India’s economic rise during a time of widespread caution about China[1]. High-speed rail collaboration and economic projects further cement bilateral ties[1]. ## Security and Strategic Alignment Both nations have updated their security and defense partnerships, revising older agreements for contemporary relevance[1]. The visit underscores India’s strategic balancing—deepening ties with Japan while keeping diplomatic lines ...

LONG AWAITED GST REFORMS IN INDIA The article describes five key ideas for transformative **GST reforms** in India, focusing on rationalising tax rates, boosting manufacturing and consumption, and implementing trust-based systems to help industry growth[1]. ## Main GST Reform Ideas - **Rationalisation of Rates**: Simplifying the current multiple GST slabs into fewer, lower tax brackets aims to encourage manufacturing and consumption, making India’s tax system more predictable and competitive internationally[1]. - **Low-cost Housing Incentives**: Promoting affordable housing through GST reductions is expected to stimulate broad economic effects, benefiting various sectors and driving GDP growth[1]. - **Trust-Based Tax System**: Shifting towards a taxation approach based on trust rather than suspicion encourages greater compliance and less adversarial relationships between businesses and authorities[1]. - **Cheaper Goods, Boosting Demand**: Reducing GST rates will lower prices for consum...

## Summary: "India’s Queasy Federalism" (The Times of India, August 23, 2025) This article discusses the **challenges to India's federal structure** posed by recent attempts to alter the balance of power between the Union (central government) and the States. The focus is on a bill proposing the removal of jailed ministers, which has triggered constitutional debates around Articles 368 (amendment power) and 164 (appointment of State ministers). ### Key Points - **Core Constitutional Tension:** The Indian Constitution aims for a cooperative federalism, but recent events have seen a tilt favoring central authority over states, raising questions about autonomy[1]. - **Role of Articles 368 & 164:** Article 368 determines how constitutional amendments occur, while Article 164 concerns ministerial appointments at the State level. The intersection of these articles has sparked controversy amid the bill proposing removal of ministers who are jailed[1]. - **Power Dy...