UPSC Mains Current Affairs for 23 June 2026

India-US Trade Talks – Falling Trade Surplus & the Stakes in the New Deal

June 23, 2026

Trade Talks Latest News

Union Commerce Minister Piyush Goyal has begun high-level talks with US Trade Representative Jamieson Greer to finalise the first tranche of an India-US trade deal, even as India’s trade surplus with the US has fallen by over 40%.

India-US Trade Relations

India and the United States share one of the world’s most important bilateral economic relationships.
India’s goods trade with the U.S. totalled an estimated $149.4 billion in 2025.
Trade between the two countries includes:
- Indian exports include pharmaceuticals, engineering goods, petroleum products, gems and jewellery, textiles, electronics, and chemicals.
- US exports include crude oil and LNG, defence equipment, agricultural products, aircraft parts, machinery, electronics, and medical instruments.
The relationship has expanded beyond merchandise trade to include:
- Services trade, especially IT and business services.
- Investment flows, though, net FDI trends have weakened in recent years.
- Technology cooperation in semiconductors, digital trade, and advanced manufacturing.
- Strategic supply chains, especially in energy and defence.
At the same time, India-US trade ties have often seen friction over tariffs, market access, agricultural subsidies, digital regulation, and localisation rules.

Key Issues in India-US Trade Ties

A central issue has been the trade imbalance, with India traditionally enjoying a surplus in merchandise trade with the US. Washington has often pushed for:
- Greater access for US farm products,
- Lower tariffs on industrial goods,
- Better terms for energy exports,
- Easier market access for American companies.
India, on the other hand, has sought:
- Better access for its manufactured goods and services,
- Predictable tariff treatment,
- Recognition of its concerns on farm livelihoods,
- Protection from heavily subsidised agricultural imports.
The wider trade environment has become more uncertain because the US is expected to complete its Section 301 investigation and unveil a new tariff architecture, which may become an alternative to reciprocal tariffs.

News Summary

India and the US have entered a critical phase of trade negotiations, with Commerce Minister Piyush Goyal holding two-day talks with US Trade Representative Jamieson Greer to finalise the first tranche of a trade agreement by next month.

Trade Surplus Has Fallen Sharply

Data from the Commerce and Industry Ministry show that India’s trade surplus with the US has declined by over 40% since negotiations began last year after Prime Minister Narendra Modi’s meeting with then US President Donald Trump on February 13, 2025.
- India’s export surplus fell to $2.94 billion in May 2026
- It had stood at $5.02 billion in May 2025
This sharp decline shows that India’s trade position with the US has weakened even before the deal is concluded.

Concessions Already Affecting Trade Balance

The decline in surplus is linked to a number of concessions and changing import patterns.
Before the Prime Minister’s US visit last year, India:
- Reduced duty on American bourbon whiskey
- Slashed tariffs on Harley-Davidson motorcycles
In addition:
- Indian public sector refiners signed a one-year deal last November to import 2.2 million tonnes per annum of US LPG
- Amid disruption in LNG supplies from West Asia, the US became India’s top source of LNG in May 2026
This suggests that the US has already gained greater export access in energy and premium consumer segments.

Declining Exports, Rising Imports Across Sectors

The data indicate that India’s trade surplus is shrinking in several sectors beyond energy. In petroleum products:
- India’s exports to the US in March 2026 fell 24.02% to $235.47 million
- Imports from the US in the same category rose 130.95% to $321.73 million
In electronic components:
- India’s exports fell 33.41% to $135.54 million
- Imports from the US jumped 136.30% to $431.89 million
A similar pattern was visible in:
- Organic chemicals
- Copper products
- Motor vehicles
- Fresh fruits
- Scientific instruments
In many of these categories, exports slipped while imports rose sharply, pointing to stronger US competition in the Indian market.

Agriculture Remains the Most Sensitive Issue

The most contentious element in the negotiations continues to be agriculture.
Several farm groups have warned the government not to compromise on farm imports, especially because the US has one of the largest agricultural subsidy programmes in the world.
Concerns have been raised for producers of Apples, Almonds, Walnuts, Soybean, Cotton and Rubber.
Farm groups argue that allowing heavily subsidised US farm goods into India would:
- Hurt domestic farmers,
- Undermine India’s long-standing WTO stance against US farm subsidies,
- Damage rural livelihoods, especially in hill and rainfed regions.
Apple growers from Himachal Pradesh, Jammu & Kashmir, and Uttarakhand have said that even a minimum import price may not protect them adequately because US apples are already entering at higher price points.
Farmer organisations have also pointed out that the US Farm Bill has allocated extremely large financial support packages over the years, while Indian farmers effectively face a negative producer support environment.

Strategic Context of the Talks

These talks are taking place at a time when the US is preparing a new tariff regime under the Section 301 process.
This means the agreement is not just about improving trade ties but also about shielding India from potentially harsher tariff action later.
Government officials have indicated that the current talks are expected to give the “final touch” to the first tranche of the agreement.

Significance

The current round of India-US trade talks is important for several reasons.
First, it will shape the future of India’s access to one of its biggest export markets.
Second, it comes at a time when India’s trade surplus with the US is already narrowing, meaning the room for further unilateral concessions may be limited.
Third, agriculture remains politically and economically sensitive, and any compromise could have direct implications for farm incomes and India’s WTO position.
Finally, the talks reflect a broader strategic balancing act: India wants deeper economic ties with the US, but without weakening domestic manufacturing, agriculture, or trade policy autonomy.

Source: IE | TH

Trade Talks FAQs

Q1: Why are the current India-US trade talks important?

Ans: They are aimed at finalising the first tranche of a trade agreement and may shape tariff treatment, market access, and sectoral trade flows between the two countries.

Q2: How much has India’s trade surplus with the US fallen?

Ans: India’s trade surplus with the US has fallen by over 40%, from $5.02 billion in May 2025 to $2.94 billion in May 2026.

Q3: Which sectors show rising US imports and falling Indian exports?

Ans: Petroleum products, electronic components, organic chemicals, copper products, motor vehicles, and fresh fruits have shown this trend.

Q4: Why is agriculture a sensitive issue in the negotiations?

Ans: US agriculture is heavily subsidised, and cheaper imports could harm Indian farmers in sectors like apples, almonds, walnuts, soybean, cotton, and rubber.

Q5: What is the Section 301 issue mentioned in the talks?

Ans: Section 301 is a US trade investigation mechanism under which Washington may introduce a new tariff architecture that could affect its trade relations with partners, including India.

Western Ghats ESA: The Debate Over Protecting India’s Biodiversity Hotspot

June 23, 2026

Western Ghats ESA Latest News

The Western Ghats Ecologically Sensitive Area (ESA) notification, currently valid until the end of July 2026, is once again in focus.
Six state governments continue to resist finalisation of ESA boundaries, even as a fresh expert committee works toward a resolution.
The debate captures a fundamental tension in Indian environmental governance — conservation versus development.

What Are the Western Ghats and Why Do They Matter

The Western Ghats are a nearly unbroken mountain chain stretching 1,500 km along India's western coast.
Second only to the Himalayas in ecological importance, the Ghats are one of the eight "hottest hotspots" of biological diversity in the entire world. They harbour hundreds of plant and animal species found nowhere else on earth.
The Ghats are not just ecologically rich — they are hydrologically critical. They act as a physical barrier against moisture-carrying monsoon winds, channelling heavy rainfall onto the coastal side.
This rainfall feeds major rivers including the Godavari, Krishna, Cauvery, and Periyar — rivers that sustain the livelihoods of millions across peninsular India.
Importantly, unlike most protected ecosystems, the Western Ghats are densely populated and economically active.
The region is famous for cash crops — pepper, cardamom, cinnamon, coffee, mango, and jackfruit.
It spans six states: Gujarat, Maharashtra, Goa, Karnataka, Kerala, and Tamil Nadu.
This combination of ecological fragility and human habitation is at the heart of the ESA dispute.

What Is an Ecologically Sensitive Area (ESA)

Under the Environment Protection Act, 1986, the Central Government can notify certain areas as Ecologically Sensitive Areas (ESAs) — also called Eco-Sensitive Zones (ESZs).
The idea is to regulate or prohibit activities that could damage fragile ecosystems.
In an ESA, activities like mining, quarrying, red-category polluting industries, thermal power plants, and large construction and townships are either banned or heavily regulated.
ESAs have previously been notified around Dahanu (Maharashtra), Mahabaleshwar-Panchgani, and the Doon Valley.

The Two Panels: Gadgil vs. Kasturirangan

The Gadgil Panel (2011)
- The Western Ghats Ecology Expert Panel, chaired by ecologist Madhav Gadgil, submitted its report in 2011.
- It took a strict position: the entire 1,29,037 sq km of the Ghats should be designated as ESA, with heavy cross-sectoral restrictions on development activities.
- States and local communities found this too restrictive and strongly opposed it.
The Kasturirangan Panel (2013)
- Given the political resistance to the Gadgil report, the Centre set up a high-level working group under K. Kasturirangan, former chief of ISRO. His panel took a more calibrated approach.
- The panel identified 1,64,280 sq km as the Ghats' total extent. Of this, it found that 60% was already "cultural landscape" — land under human use: settlements, plantations, and agriculture.
- The remaining 40% (approximately 60,000 sq km) was classified as "natural landscape" — high biological richness, low human density, and home to national parks, tiger reserves, and elephant habitats.
- The panel recommended that only this 60,000 sq km natural landscape be notified as ESA, along with a ban on the most damaging industrial activities.
- The then government accepted this in principle in December 2013.

A Decade of Draft Notifications and Deadlock

The Centre issued its first draft ESA notification in March 2014, demarcating 56,825.7 sq km — already reduced from the 60,000 sq km recommended by Kasturirangan.
Since 2014, the ESA draft notification has been issued and revised six times. The latest notification was issued on July 31, 2024, and is valid until the end of July 2026.
Each time, the Environment Ministry has sought state approval on final ESA boundaries. Each time, states have returned with fresh demands or remained deadlocked.
A notable change in the July 2024 notification: for the first time, it introduced a provision to finalise ESA in a phased, state-wise manner — rather than waiting for all six states to agree simultaneously.
This allows the Centre to proceed with states where consensus is closer, without being held back by the more resistant ones.

Why Are States Opposing the ESA

The core objection is economic. States fear that ESA notification will impose severe restrictions on industrial activity, mining, quarrying, and construction in their territories.
Karnataka has been the most resistant. It has completely rejected the Kasturirangan panel recommendations and remains far from consensus.
Kerala has sought to reduce its notified area from 9,993.7 sq km by another approximately 1,000 sq km. It wants villages in Idukki — particularly in the Cardamom Hills — excluded, citing active plantation and agricultural activity.
Maharashtra has sought exclusion of 378 villages from the 2,133 listed in the draft, arguing these villages host industries, mining operations, or are geographically distant from core ESA zones.
Goa, Gujarat, and Tamil Nadu have also raised objections, though the most acute tensions remain in Kerala and Karnataka.

The 2022 Expert Committee: A Fresh Attempt

In 2022, the Centre constituted a new expert committee under Sanjay Kumar, former Director General of Forests, to re-examine state objections while keeping conservation needs in view.
It has been working to resolve ground-level disputes — reconciling village-level data, revenue records, and satellite imagery.
Notably, the committee is also considering financial incentives for states that protect the Ghats.
- The Kasturirangan panel had recommended that the six states negotiate for a grant-in-aid from the Centre as compensation for ecological protection.
The concept of Payments for Ecosystem Services (PES) — where states receive financial compensation for the ecological services their forests provide (clean water, carbon sequestration, biodiversity) — is also on the table.

Conclusion

The Western Ghats debate is not just about land demarcation. It is about how India balances ecological survival with economic development — a question central to India's climate commitments, disaster preparedness, and long-term water security.
The region has already seen the consequences of ecological degradation. Landslides and floods — including the devastating 2018 and 2019 Kerala floods — have been partly attributed to deforestation and unregulated construction in ecologically sensitive zones.
Civil society groups in Kerala, Goa, Karnataka, and Maharashtra have simultaneously protested demanding both stronger protection and exclusion of their villages — reflecting the internal contradictions within states themselves.

Source: IE

Western Ghats ESA FAQs

Q1: Why is the Western Ghats ESA important for India?

Ans: The Western Ghats ESA protects biodiversity, safeguards water security, preserves endemic species and supports ecological stability across peninsular India.

Q2: What is an Ecologically Sensitive Area under the Western Ghats ESA framework?

Ans: Under the Western Ghats ESA framework, ecologically fragile regions face restrictions on mining, quarrying, polluting industries and large-scale construction.

Q3: How do the Gadgil and Kasturirangan reports differ on Western Ghats ESA?

Ans: The Gadgil report proposed Western Ghats ESA status for the entire region, while the Kasturirangan report recommended protection only for natural landscapes.

Q4: Why have states opposed the Western Ghats ESA notification?

Ans: States argue that the Western Ghats ESA could restrict economic activities, affect livelihoods, limit infrastructure development and reduce industrial opportunities.

Q5: What solutions are being explored to resolve the Western Ghats ESA deadlock?

Ans: The Western Ghats ESA debate is exploring phased implementation, village-level boundary revisions and Payments for Ecosystem Services to incentivise conservation.

Keir Starmer Resignation: Understanding the Constitutional Process Behind the Political Crisis

June 23, 2026

Keir Starmer Resignation Latest News

Keir Starmer has formally resigned as the Prime Minister of the United Kingdom and as leader of the Labour Party.
With this, the UK will have had seven Prime Ministers in a single decade — a remarkable sign of political instability in one of the world's oldest parliamentary democracies.
The 2024 general election was a landslide for Labour. The party won 412 seats, ending 14 years of Conservative rule. Two years later, he is gone.

Why Did Starmer Resign

The 'Freebies Gate' Scandal - Starmer and his Cabinet Ministers were accused of accepting gifts worth thousands of pounds. Dubbed "Freebies Gate," it caused a sharp drop in his approval ratings.
Unpopular Policy Decisions - Several decisions deepened public resentment. He cut winter fuel subsidies for roughly 10 million pensioners to fund the National Health Service (NHS). He released 1,700 prisoners before their sentences were complete.
The Brexit Shadow - Starmer's resignation came a day before the tenth anniversary of Brexit — Britain's 2016 decision to leave the European Union (EU). A decade on, the economic consequences are deeply felt.
- An estimated 2–8% contraction in GDP, high borrowing, tax hikes, rampant inflation, failed immigration control, and trade complications have made 57% of Britons believe Brexit was a mistake.
The Final Blow: Local Elections and the Makerfield By-Election - In the May 2026 local elections, Labour lost 1,100 council seats and control of over 30 councils — a catastrophic performance.

How the UK Constitutional System Works: Understanding the Process

This section is particularly important for UPSC, as it involves comparing parliamentary systems.

How the UK Chooses Its Prime Minister

The UK Parliament has two Houses — the House of Lords and the House of Commons.
The Commons has 650 seats. Citizens vote in general elections to elect their local Member of Parliament (MP).
The leader of the party that secures a majority in the House of Commons is invited by the Monarch (currently King Charles III) to form the government.
That leader becomes the Prime Minister.
A critical point: the five-year term limit applies to Parliament, not to the individual PM.
So even if the party retains its majority, the PM can be changed mid-term — without a fresh general election.

The PM as "First Among Equals" (Primus Inter Pares)

The British system treats the PM not as a supreme executive, but as first among equals within the Cabinet and the parliamentary party.
The PM's authority rests entirely on the confidence of their own party's MPs.
Once that confidence erodes, the PM can be replaced — a much simpler and faster process than in presidential systems.

How a PM Is Replaced: Labour Party's Internal Process

Step 1 — Triggering a Vacancy: A leadership contest begins when the sitting leader resigns, or when 20% of Labour MPs (currently 81 members) formally back a challenger.
Step 2 — NEC Convenes: The National Executive Committee (NEC) immediately meets to set the timetable — defining deadlines for nominations and the voting process.
Step 3 — Candidate Nomination: Candidates must be sitting House of Commons MPs and must secure nominations from either 5% of Constituency Labour Parties (CLPs) or three affiliated organisations such as trade unions.
Step 4 — Preferential Ballot: All party members and affiliates vote using a preferential ballot, ranking candidates in order of preference. The winner must cross 50% of votes. If no one achieves this in the first round, the least popular candidates are eliminated and their votes redistributed — until a winner emerges.

The Constitutional Handover

The new Labour leader does not become PM automatically. The outgoing PM (Starmer) must travel to Buckingham Palace to formally tender resignation to King Charles III.
The newly elected Labour leader is then summoned for an audience with the King, who invites them to form the government. Upon accepting, they officially become Prime Minister.
Andy Burnham — the newly elected MP for Makerfield and former Mayor of Greater Manchester — is currently the frontrunner, with Streeting having withdrawn to back him.

Conclusion

Since 2016, the UK has cycled through leaders with striking speed: David Cameron, Theresa May, Boris Johnson, Liz Truss (45 days — the shortest tenure in UK history), Rishi Sunak, and now Starmer. None has completed a full term.
This pattern reflects a deeper structural crisis — the unresolved consequences of Brexit, economic stagnation, fractured party politics, and a rising far-right that is challenging the two-party order Britain has known for over a century.

Source: IE | IE

Keir Starmer Resignation FAQs

Q1: What factors led to the Keir Starmer Resignation?

Ans: The Keir Starmer Resignation was driven by declining popularity, the "Freebies Gate" controversy, unpopular policies, Brexit-related economic pressures and electoral setbacks.

Q2: How does the Keir Starmer Resignation reflect the UK parliamentary system?

Ans: The Keir Starmer Resignation demonstrates that a Prime Minister serves as long as they retain the confidence of their party and Parliament.

Q3: What constitutional process follows the Keir Starmer Resignation?

Ans: Following the Keir Starmer Resignation, the Labour Party elects a new leader, who is then invited by the Monarch to form the government.

Q4: Why is the Keir Starmer Resignation significant in British politics?

Ans: The Keir Starmer Resignation means the UK has witnessed seven Prime Ministers within a decade, highlighting persistent political instability.

Q5: How is Brexit connected to the Keir Starmer Resignation?

Ans: The Keir Starmer Resignation occurred amid continuing economic and political consequences of Brexit, including inflation, slower growth and public dissatisfaction.