• Rank: 80th • Mobility: 55 visa-free destinations • Context: India has moved up 5 places from its 85th position in 2025. • Shares rank with: Algeria and Niger
Quick Facts for Reference
• Singapore has maintained the #1 spot for three years in a row • Weakest passport: Afghanistan (Rank 101) with 24 visa-free destinations • Methodology: Uses IATA data; covers 199 passports against 227 destinations
• Total India–EU merchandise trade: $90.7 billion • India’s exports to EU: $51.0 billion • India’s imports from EU: $39.7 billion
Negotiation progress
• FTA talks started: July 2022 • 14 rounds of negotiations completed so far • Negotiations concluded in 20 out of 24 chapters/policy areas
Strategic significance
• EU is currently India’s largest trading partner • The FTA also covers cooperation beyond trade, including security, clean energy transition, and people-to-people ties
• India’s debt-to-GDP ratio in FY27 is projected to decline to ~55.1%, down from ~61.4% in FY21. • Fiscal deficit is expected to narrow to ~4.2% of GDP in FY27, from 4.4% in FY26. • The government targets a steadily declining debt path, aiming for ~50% (±1%) by FY31.
Formula: Revenue Deficit = Revenue Expenditure − Revenue Receipts • What it shows: The government is borrowing for routine consumption (salaries, subsidies). • Why it is bad: No asset creation → weak fiscal quality.
2. Fiscal Deficit (Borrowing Need)
• Meaning: Total funds the government needs to borrow in a year. Formula: Fiscal Deficit = Total Expenditure − (Revenue Receipts + Non-debt Capital Receipts) • Article data: ~4.2% of GDP in FY27
Formula: Debt–GDP Ratio = Total Public Debt / GDP Why it matters more than deficit: • Reflects long-term fiscal sustainability • Used by rating agencies, IMF, investors
PYQ – 2018 ( Ans – C )
PYQ – 2025 ( Ans – D )
PYQ – 2025 ( Ans – A )
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