GK One-Liners

What: India and France have amended their Double Taxation Avoidance Convention (DTAC), introducing significant structural changes to bilateral tax treatment. Under the revised treaty, capital gains will now be taxed in the country where the company is resident. The Most Favoured Nation (MFN) clause has been removed, and a new two-tier dividend tax structure of 5% and 15% has been adopted. A new concept of Service Permanent Establishment (Service PE) has also been introduced.

How: DTACs are bilateral agreements that prevent the same income from being taxed in both countries. The removal of the MFN clause means France will no longer automatically receive the benefit of lower tax rates India may offer to other OECD nations in future treaties. The Service PE concept allows India to tax foreign companies that provide services in India beyond a threshold period, even without a physical office. This aligns India’s treaty network with its domestic tax policy goals.

Why: International taxation is a growing area in UPSC GS3 (Economy) and is frequently tested in banking and SSC exams. Key terms to remember include DTAC/DTAA, MFN clause, PE (Permanent Establishment), and source-based vs. residence-based taxation. The India–France amendment signals India’s broader strategy of renegotiating older treaties to protect its tax base — a theme that connects to BEPS (Base Erosion and Profit Shifting) and OECD’s Pillar One/Two framework.

What: The Ministry of Home Affairs (MHA) has released PRAHAAR, India’s first comprehensive national counter-terrorism (CT) doctrine. Built on 7 pillars, the document adopts a zero-tolerance stance and a whole-of-government approach to tackling terrorism. It specifically criminalises terror financing and radicalisation as distinct offences within the CT framework.

How: The whole-of-government approach integrates intelligence agencies, law enforcement, financial regulators, border forces, cyber security units, and diplomatic channels under a unified doctrinal umbrella. The 7 pillars cover the entire spectrum from prevention and pre-emption to prosecution and international cooperation. By criminalising terror financing and radicalisation separately, PRAHAAR strengthens the legal architecture beyond existing provisions under the Unlawful Activities (Prevention) Act (UAPA), 1967 and the National Investigation Agency (NIA) Act, 2008.

Why: Internal security is a dedicated topic in GS3 for UPSC Mains, and a unified CT doctrine is a first-of-its-kind development for India. For Prelims, remember: PRAHAAR (double ‘A’), released by MHA, 7 pillars, zero-tolerance approach. For Mains, this connects to India’s counter-terrorism architecture (NIA, NATGRID, MAC), the challenge of radicalisation, terror financing under FATF (Financial Action Task Force) scrutiny, and India’s push for a Comprehensive Convention on International Terrorism (CCIT) at the UN.

What: The 16th edition of Exercise Vajra Prahar, a joint special forces exercise between India and the United States, has commenced at Bakloh in Himachal Pradesh. The exercise runs until March 16, 2026 and involves 45 Indian special forces personnel alongside 12 US Green Berets. The primary focus is mountain warfare and counter-insurgency operations in high-altitude terrain.

How: Vajra Prahar is an annual bilateral exercise that rotates between India and the US. This edition emphasises close-quarters combat, heliborne operations, joint intelligence-sharing protocols, and survival techniques in sub-zero mountain environments. The participation of US Army Green Berets (7th Special Forces Group) alongside Indian Army’s Para (Special Forces) enhances interoperability between the two forces.

Why: Joint military exercises are among the most frequently tested factual topics in Prelims across UPSC, CDS, and NDA exams. Key recall points: Vajra Prahar = India + USA + Special Forces + Army. Other India-US exercises to note include Yudh Abhyas (Army), Cope India (Air Force), Malabar (Navy, also includes Japan and Australia), and Tiger Triumph (Tri-service HADR). For Mains, these exercises illustrate the deepening India-US defence partnership under the framework of the Initiative on Critical and Emerging Technology (iCET) and the 2+2 Ministerial Dialogue.

What: The United Nations designated Sachin Tendulkar as a Global Champion for Road Safety on February 24, 2026. Tendulkar joins a select group of international leaders and public figures who advocate for reducing road traffic deaths and injuries worldwide. India records one of the highest road accident fatality rates globally, making the appointment particularly significant.

How: As a UN Global Champion, Tendulkar will leverage his global profile to raise awareness about road safety, support advocacy campaigns, and promote behavioural change. The designation falls under the UN Decade of Action for Road Safety (2021–2030), which targets a 50% reduction in global road traffic deaths and injuries by 2030. India’s Motor Vehicles (Amendment) Act, 2019 already strengthened penalties and introduced electronic enforcement, and Tendulkar’s role complements these domestic efforts with international visibility.

Why: UN-related appointments and designations of Indians are high-frequency Prelims questions. Key facts to remember: Sachin Tendulkar + Road Safety + February 2026. For broader context, Tendulkar was earlier a Rajya Sabha MP (2012–2018) and received the Bharat Ratna in 2014. For Mains, road safety connects to governance themes (GS2) and infrastructure/transport policy (GS3). India’s National Road Safety Policy and the Brasília Declaration on Road Safety are useful references.

What: The Asian Development Bank (ADB) has signed a USD 108 million financing agreement with Aavas Financiers to support affordable housing and Micro, Small and Medium Enterprises (MSME) lending in India. The package includes USD 8 million in concessional debt under the Climate Action Nexus for Productivity Advancement (CANPA) facility, specifically earmarked for green-certified homes.

How: ADB’s financing will be channelled through Aavas Financiers — a housing finance company focused on low- and middle-income borrowers in semi-urban and rural India. The CANPA concessional component incentivises the construction of energy-efficient, green-certified housing by offering below-market interest rates. This blends traditional development finance with climate-linked lending, a model increasingly used by Multilateral Development Banks (MDBs) to mainstream climate goals into sectoral lending.

Why: ADB partnerships are tested in both Prelims (headquarters: Manila; President: Masatsugu Asakawa) and Mains (role of MDBs in development finance). The affordable housing angle connects to Pradhan Mantri Awas Yojana (PMAY) and Housing for All. The green finance component links to India’s Green Taxonomy, Sovereign Green Bonds, and climate commitments. MSME lending is a perennial theme in banking exams. Remember: ADB + USD 108 Mn + Aavas + CANPA for green homes.

What: India and the Gulf Cooperation Council (GCC) have signed a Joint Statement formally launching comprehensive Free Trade Agreement (FTA) negotiations. The statement was signed by Commerce & Industry Minister Piyush Goyal and the GCC Secretary General. Bilateral trade between India and the GCC bloc stood at USD 178.56 billion in FY 2024–25, and the FTA will cover trade in goods, services, and investment.

How: The GCC comprises six member states — Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, and Oman. FTA negotiations will address tariff reduction schedules, rules of origin, services liberalisation (especially IT and professional services), and investment protection mechanisms. India already has a bilateral Comprehensive Economic Partnership Agreement (CEPA) with the UAE (signed 2022), and the India–GCC FTA would create a broader multilateral trade framework encompassing the entire Gulf bloc.

Why: India–GCC trade relations are a high-probability area for both Prelims and Mains. For Prelims: GCC = 6 members (mnemonic: SUQ-KBO — Saudi, UAE, Qatar, Kuwait, Bahrain, Oman), trade figure of USD 178.56 billion, and the signatory (Piyush Goyal). For Mains (GS2 — International Relations and GS3 — Economy), this connects to India’s energy security (GCC supplies ~40% of crude oil imports), the Indian diaspora (~10 million in GCC), remittance inflows (India is the world’s top remittance recipient), and India’s broader FTA strategy alongside RCEP opt-out and IPEF membership.