Context: Cities generate ~67% of GDP and ~90% of government revenue, yet Finance Commission transfers to urban local bodies remain only ~0.12–0.13% of GDP. 1. Finance Commission — Basis & Role • Constituted under Article 280 by the President (every 5 years).• Composition: 1 Chairman + 4 Members. Recommends: – Tax devolution (Union–States; among States).– Grants-in-aid under Article 275.– Measures to augment funds of Panchayats & Municipalities (urban local bodies). 2. Transfers to Urban Local Bodies • 15th Finance Commission: ~₹1.2–1.3 lakh crore (5 years).• 16th Finance Commission: ₹3.56 lakh crore (2026–31) (₹75,000 crore/year). • Urban population:– ~470 million (2020)– May exceed 600 million by 2030 → Per-capita support limited. 3. Why Grants Stay Limited • Mostly tied grants (water, sanitation, waste), limiting flexibility.• Performance-linked conditions: audits, elections, fiscal discipline, State Finance Commissions.• Urban development is a State subject (State List), raising federal concerns. 4. Structural Constraints • Rising cess collections (~2.2% of GDP) outside divisible pool reduce devolution space.• Weak own-source revenue (property tax, user charges) constrains cities.

Context: The Centre invoked the Essential Commodities Act, 1955 to direct refiners to prioritise LPG production for domestic cooking needs amid supply concerns linked to West Asia disruptions. Key Data • Government ordered refiners to maximise LPG production and prioritise domestic supply.• Refiners instructed not to divert propane–butane streams for petrochemicals or other derivatives.• LPG is mainly a mixture of propane and butane.• Production can be increased by rebalancing refining streams. • Around 60% of India’s LPG is imported, mainly from Persian Gulf countries such as Saudi Arabia and Qatar.• Domestic refineries produce roughly 40% of India’s LPG requirement.• Disruption in the Strait of Hormuz may affect LPG imports and logistics. Essential Commodities Act — Provision Used • Action taken under Section 3 of the Essential Commodities Act, 1955.• Section 3 empowers the Centre to regulate production, supply, distribution and pricing of essential commodities to ensure availability and prevent hoarding.

Context: Escalating West Asia tensions threaten India’s gem and jewellery trade through supply disruptions, demand shocks and rising logistics costs linked to GCC markets. 1. India–GCC Trade (Gem & Jewellery — Key Data) • GCC supplies 30%+ of India’s gem and jewellery imports (raw materials and precious metals).• Imports from GCC increased from $16 billion (FY22) to $28 billion (FY25).• India’s exports to GCC rose from $5.1 billion (FY22) to $8.3 billion (FY25).• GCC accounts for over 50% of India’s gold jewellery exports.• UAE serves as a major hub for gold bars, bullion and rough diamonds, with Dubai acting as a global diamond trading centre. 2. India–GCC Overall Trade • FY 2024–25 bilateral trade ≈ $178.56 billion • GCC accounts for about 15.4% of India’s global trade.• GCC is one of India’s largest regional trade partners, led by UAE and Saudi Arabia. 3. Gulf Cooperation Council (GCC) • Established in 1981.• Members: Saudi Arabia, UAE, Qatar, Kuwait, Oman, Bahrain.• Focus areas include economic integration, energy cooperation, trade and security coordination.

Context: The ongoing West Asia conflict risks disrupting several critical industrial inputs for India, beyond oil and gas. Key Raw Materials at Risk • Limestone• Gypsum• Sulphur• Direct reduced iron (iron produced from ore without melting)• Copper wires Key Points • Import dependence from West Asia is significant: • More than 40% of India’s rough diamonds are sourced from the region for processing and export.• Disruptions in the Strait of Hormuz could increase logistics costs and delay supplies.• Industries likely affected include steel, fertiliser and construction sectors.