UPSC CURRENT AFFAIRS – 25 February 2026

UPSC CURRENT AFFAIRS – 25 February 2026 covers important current affairs of the day, their backward linkages, their relevance for Prelims exam and MCQs on main articles

InstaLinks : Insta Links help you think beyond the current affairs issue and help you think multidimensionally to develop depth in your understanding of these issues. These linkages provided in this ‘hint’ format help you frame possible questions in your mind that might arise(or an examiner might imagine) from each current event. InstaLinks also connect every issue to their static or theoretical background.

Table of Contents

GS Paper 1 & 2:

• World Bank’s Women, Business and the Law 2026 report

World Bank’s Women, Business and the Law 2026 report

GS Paper 3:

• India’s Energy Shift through the Green Ammonia Route

India’s Energy Shift through the Green Ammonia Route

Content for Mains Enrichment (CME):

• India–GCC Free Trade Agreement (FTA)

India–GCC Free Trade Agreement (FTA)

Facts for Prelims (FFP):

• Union Cabinet approves renaming Kerala as Keralam

Union Cabinet approves renaming Kerala as Keralam

• 75th Anniversary of Employees’ State Insurance Corporation (ESIC)

75th Anniversary of Employees’ State Insurance Corporation (ESIC)

• Human Papillomavirus (HPV) Vaccination

Human Papillomavirus (HPV) Vaccination

• Congo Lakes (Mai Ndombe and Tumba)

Congo Lakes (Mai Ndombe and Tumba)

• Military Exercises in News

Military Exercises in News

• Double Taxation Avoidance Convention (DTAC)

Double Taxation Avoidance Convention (DTAC)

Mapping:

• Israel

Israel

UPSC CURRENT AFFAIRS – 25 February 2026

GS Paper 1 & 2 :

World Bank’s Women, Business and the Law 2026 report

Source: DTE

Subject: Role of Women and Vulnerable Section

Context: The World Bank’s Women, Business and the Law 2026 report highlights a significant global implementation gap, where laws for women’s economic equality exist on paper but often fail in practice due to weak enforcement and lack of supportive systems.

About the World Bank’s Women, Business and the Law 2026 report:

What it is?

• The Women, Business and the Law (WBL) 2026 report is the 11th in a series of annual studies measuring the laws and policies affecting women’s economic opportunities in 190 economies.

• This edition uses the WBL 2.0 framework, which benchmarks three pillars: Legal Frameworks (the laws), Supportive Frameworks (policies and services), and Enforcement Perceptions (how laws are applied in reality).

• Legal Frameworks (the laws),

• Supportive Frameworks (policies and services), and

• Enforcement Perceptions (how laws are applied in reality).

Key Highlights of the Report:

• The Global Score: The global average score for legal frameworks is 67.9 out of 100, but it drops sharply to 47.3 for supportive frameworks and 53.4 for enforcement perceptions.

• Safety Gap: Safety is the lowest-scoring area; while many countries have some laws, enforcement fails roughly 80% of the time, and only one-third of the necessary safety laws are in place globally.

• The 4% Benchmark: Only 4% of women live in economies that have achieved nearly full legal equality (scoring 90 or above) across all three pillars.

• Economic Stakes: Closing the gender gap in labor force participation could increase global GDP by more than 20% over the next decade.

• Childcare Deficit: Less than half of the 190 economies have laws providing financial support for families, and in low-income economies, only 1% of the required childcare support mechanisms exist.

• Entrepreneurship Barriers: Although women can legally start businesses in most places, only half of economies promote equal access to credit.

• Reform Momentum: Over the last two years, 68 economies enacted 113 positive legal reforms, with Sub-Saharan Africa leading with 33 reforms.

• Implementation Crisis: On average, economies have established fewer than half of the policies and services needed for effective enforcement of equality laws.

Global Best Practices:

• Integrated Implementation: Best-performing economies align legal changes with dedicated budgets and specialized enforcement agencies, such as gender-specific police units for safety.

• Incentivizing Care: Economies that provide direct subsidies for childcare and mandate paid parental leave for both parents see significantly higher female labor participation.

• Gender-Responsive Procurement: Countries like Viet Nam have enacted legislation including gender-responsive provisions for public procurement processes to support women-led businesses.

Challenges Associated:

• Ineffective Safety Protections: Laws against harassment often lack the specialized agencies needed for real protection.

E.g. In many economies, laws against sexual harassment exist, but specialized courts or hotlines to handle cases are frequently missing.

• The Motherhood Penalty: A lack of affordable childcare often forces women to exit the workforce.

E.g. In many developing economies, there is a total absence of financial or tax support for families to access high-quality childcare services.

• Financial Exclusion: Cultural norms and credit biases prevent women from securing loans even when they have the legal right to start a business.

E.g. Only half of the world’s economies have laws that specifically prohibit gender-based discrimination in financial services.

• Weak Monitoring Systems: Governments fail to track how laws are actually impacting women’s lives.

E.g. Most economies lack the data-gathering systems required to monitor if equal pay for equal work is actually being practiced in the private sector.

• Legal Gaps in Basic Rights: In some regions, laws still restrict women’s mobility or rights within marriage.

E.g. In parts of the Middle East and North Africa, legal reforms are slow to address basic issues like a woman’s right to choose where to live.

Way Ahead:

• Bridge the Implementation Gap: Focus on building the institutional capacity and funding required for the supportive frameworks that turn laws into reality.

• Invest in Care Infrastructure: Prioritize the expansion of public and private childcare services to reduce the unpaid care burden on women.

• Mandate Equal Credit Access: Enact laws that prohibit gender discrimination in lending and promote credit-reporting models that recognize women’s repayment histories.

• Strengthen Safety Services: Establish 24/7 hotlines, specialized police units, and legal aid services for survivors of violence.

• Adopt Gender-Disaggregated Data: Use data to track policy impacts and identify specific areas where enforcement is failing at the local level.

Conclusion:

The 2026 report demonstrates that while legal progress is being made, the global community is failing on the implementation of these rights. To unlock massive economic growth, governments must move beyond legislative milestones and invest in the enforcement and support systems that ensure true equality in practice. Only then will the 600 million girls entering the workforce this decade have a fair chance at success.

Q. Addressing gender inequality in the workplace requires a comprehensive approach that tackles its root causes and fosters a culture of equality and inclusivity. Discuss. (250 words).

#### UPSC CURRENT AFFAIRS – 25 February 2026 GS Paper 3:

India’s Energy Shift through the Green Ammonia Route

Source: TH

Subject: Energy

Context: India recently conducted a landmark auction through the Solar Energy Corporation of India (SECI), discovering record-low prices for green ammonia that are 40%–50% lower than European benchmarks.

About India’s Energy Shift through the Green Ammonia Route:

What it is?

• Green ammonia is produced by combining nitrogen from the air with green hydrogen (generated by splitting water using renewable energy).

• Unlike traditional grey ammonia, which relies on natural gas and emits significant CO2, green ammonia has a near-zero carbon footprint.

Key Data/Stats:

• Record Low Price: SECI’s auction discovered a price of ₹49.75 to ₹64.74/kg ($572–$744/tonne), nearly half the cost of the EU’s H2Global auction ($1,153/tonne).

• Demand Aggregation: The tender targeted an annual demand of 724,000 tonnes of green ammonia across 13 fertilizer plants.

• Investment Goal: PM highlighted investment opportunities worth $500 billion across India’s energy sector.

• Import Reduction: Green ammonia is expected to replace 30% of India’s ammonia imports, insulating the economy from gas market volatility.

• Emission Savings: The National Green Hydrogen Mission aims to avoid nearly 50 MMT of CO2 emissions annually by 2030.

Potential of Green Ammonia:

• Decarbonizing Agriculture: It replaces fossil-fuel-based feedstock in fertilizers, making the food supply chain sustainable.

E.g. The supply of 75,000 tonnes of green ammonia to Paradeep Phosphates in Odisha marks the start of this transition in India’s fertilizer hubs.

• Zero-Carbon Marine Fuel: Ammonia is easier to store than hydrogen and can be used as a clean alternative to heavy fuel oil in ships.

E.g. India is developing the Rotterdam-India-Singapore green shipping corridor to operationalize maritime decarbonization.

• Hydrogen Carrier: Ammonia acts as a stable medium to transport hydrogen over long distances.

E.g. India is positioning its coastal ports like Kandla and Tuticorin as Hydrogen Hubs for global exports to Japan and South Korea.

• Energy Storage: It serves as a long-duration energy storage solution, helping balance the grid during renewable energy fluctuations.

E.g. Integration of hybrid renewable systems (solar + wind + storage) is being piloted to ensure round-the-clock green ammonia production.

Initiatives Taken:

• SIGHT Programme: An outlay of ₹17,490 crore under the Strategic Interventions for Green Hydrogen Transition to provide production-linked incentives (PLI).

• Green Hydrogen Hubs: Recognition of Deendayal, Paradip, and V.O. Chidambaranar ports as dedicated hubs for hydrogen and its derivatives.

• National Green Hydrogen Mission (2023): An umbrella mission to create a 5 MMTPA production capacity and attract ₹8 lakh crore in investments by 2030.

• SECI Auction Model: Implementing 10-year fixed-price offtake agreements and aggregated procurement to provide market certainty to developers.

Challenges Associated:

• Cost Gap with Grey Ammonia: Despite the price drop, green ammonia is still slightly more expensive than grey ammonia (approx. $515/tonne).

E.g. Even with incentives, the Green Premium remains a hurdle for price-sensitive industries without mandatory blending norms.

• Infrastructure Deficit: Lack of specialized bunkering and storage facilities at ports.

E.g. Current e-fuel demand at ports like VOC (Tuticorin) is insufficient to justify high-cost dedicated bunkering infrastructure without further scaling.

• Regulatory Fragmentation: Inconsistent state-level policies on grid banking and transmission charges.

E.g. Many states find it fiscally strained to provide the 60% subsidy promised in their local green hydrogen policies.

• Technology Readiness: High capital cost of electrolysers and the need for large-scale ammonia cracking units.

E.g. India still relies heavily on imported electrolyser technology, though local manufacturing PLIs are trying to address this.

• Safety and Toxicity: Ammonia is highly corrosive and toxic, requiring stringent handling protocols.

E.g. Expanding its use as a marine fuel requires re-engineering ship engines and training maritime staff in new safety standards.

Way Ahead:

• Harmonize Regulations: Implement stable and uniform rules across all states for grid access, power banking, and wheeling charges.

• Blended Finance: Leverage long-tenor, low-interest capital from multilateral banks to improve project bankability.

• Global Certification: Align India’s green hydrogen standards with global norms (like the EU) to facilitate seamless exports.

• Mandatory Blending: Introduce green hydrogen/ammonia consumption mandates for refineries and fertilizer plants to ensure a guaranteed market.

• R&D in Safety: Invest in indigenous safety monitoring and sensor technologies to manage the risks associated with ammonia handling.

Conclusion:

India’s move toward green ammonia marks a decisive shift from energy security to energy independence. By creating a competitive market through the SIGHT programme and SECI auctions, India is effectively narrowing the gap between clean and fossil-fuel-based energy. If supported by sustained policy and infrastructure investment, green ammonia will become the cornerstone of India’s journey toward Net Zero by 2070.

#### UPSC CURRENT AFFAIRS – 25 February 2026 Content for Mains Enrichment (CME)

India–GCC Free Trade Agreement (FTA)

Context: India and the Gulf Cooperation Council (GCC) signed a Joint Statement formally launching negotiations for the India–GCC Free Trade Agreement (FTA).

About India–GCC Free Trade Agreement (FTA):

What it is?

• The India–GCC FTA is a proposed comprehensive trade agreement between India and the Gulf Cooperation Council (Saudi Arabia, UAE, Qatar, Kuwait, Oman, and Bahrain).

• It aims to establish a structured framework to enhance bilateral trade, investment flows, and economic integration through reduced trade barriers and improved market access.

Key Features:

• Formal Launch of Negotiations: Joint Statement signed in February 2026, marking the beginning of structured negotiations for a broad-based trade pact.

• Comprehensive Economic Coverage: Expected to include trade in goods, services, investment facilitation, and regulatory cooperation for smoother business operations.

• Major Trade Partnership: GCC is India’s largest trading partner bloc, with bilateral trade of USD 178.56 billion (FY 2024–25), accounting for over 15% of India’s global trade.

• Sectoral Complementarity: India exports engineering goods, textiles, rice, gems & jewellery, while importing crude oil, LNG, petrochemicals and precious metals from GCC nations.

• Investment and Diaspora Linkages: GCC nations are major investors in India (over USD 31 billion FDI) and host nearly 10 million Indians, strengthening economic and social ties.

Relevance in UPSC Exam Syllabus

• GS Paper II – International Relations

• India and its neighbourhood & regional groupings Bilateral, regional and global trade agreements India’s relations with West Asia / Gulf region

• India and its neighbourhood & regional groupings

• Bilateral, regional and global trade agreements

• India’s relations with West Asia / Gulf region

• GS Paper III – Indian Economy

• External sector and trade policy Free Trade Agreements and export diversification FDI flows and economic integration

• External sector and trade policy

• Free Trade Agreements and export diversification

• FDI flows and economic integration

UPSC CURRENT AFFAIRS –25 February 2026 Facts for Prelims (FFP)

Union Cabinet approves renaming Kerala as Keralam

Source: DD News

Subject: Polity

Context: The Union Cabinet has approved the proposal to rename the State of Kerala as Keralam, following resolutions passed by the Kerala Legislative Assembly in 2023 and 2024.

About Union Cabinet approves renaming Kerala as Keralam:

What it is?

• The Union Cabinet has approved the proposal to alter the official name of the State of Kerala to Keralam.

• The change seeks to replace the English-adopted constitutional term “Kerala” with the traditional Malayalam usage “Keralam.”

• After Cabinet approval, the Kerala (Alteration of Name) Bill, 2026 will follow the constitutional process before becoming law.

Articles associated:

• Article 3 of the Constitution: Empowers Parliament to form new states or alter areas, boundaries, or names of existing states.

• Proviso to Article 3: A Bill altering a state’s name can be introduced only on the recommendation of the President. The President must refer the Bill to the concerned State Legislature to seek its views.

• A Bill altering a state’s name can be introduced only on the recommendation of the President.

• The President must refer the Bill to the concerned State Legislature to seek its views.

• First Schedule of the Constitution: Contains the list and names of states and Union Territories; amendment required here for renaming.

Procedure for renaming a state:

• State Legislature Resolution: Kerala Assembly passed resolutions requesting the name change.

• Examination by Union Government: Ministry of Home Affairs scrutinizes the proposal and consults relevant ministries/agencies.

• Union Cabinet Approval: Cabinet clears the proposal for legislative action.

• President’s Reference: President refers the Bill to the State Legislature for its opinion (Article 3 proviso).

• Parliamentary Approval: Bill introduced in Parliament after Presidential recommendation and passed by both Houses.

• Notification & Amendment: First Schedule amended; new name comes into legal effect.

Reason for the change:

• The state is called “Keralam” in Malayalam, while the Constitution records it as “Kerala.”

• The demand reflects linguistic identity and the legacy of the Aikya Kerala movement, which sought unification of Malayalam-speaking regions.

• The Assembly argued that states formed on linguistic lines (1956) should reflect native linguistic nomenclature.

75th Anniversary of Employees’ State Insurance Corporation (ESIC)

Source: PIB

Subject: Polity

Context: The Employees’ State Insurance Corporation (ESIC) has commenced its 75th Foundation Year celebrations, marking seven decades of social security service to workers in India.

About 75th Anniversary of Employees’ State Insurance Corporation (ESIC):

What it is?

• ESIC is a statutory social security body under the Ministry of Labour & Employment, Government of India.

• It manages the ESI Scheme, which provides comprehensive medical care and financial protection to employees against sickness, maternity, disablement, and death due to employment injury.

Established In:

• Act: The Employees’ State Insurance Act was promulgated in 1948.

• Inauguration: The scheme was officially launched on February 24, 1952 (celebrated annually as ESIC Foundation Day).

History:

• Genesis: The first document on social insurance in India was the Report on Health Insurance (1944) by Prof. B.P. Adarkar, who was known as Chhota Beveridge.

• Launch: Inaugurated in Kanpur and Delhi by then PM Pandit Jawaharlal Nehru, who was the first honorary insured person of the scheme.

• Leadership: Dr. C.L. Katial served as the first Director General of ESIC.

Key Functions:

• Medical Benefit: Provides full medical care (from primary to tertiary) to insured persons and their families.

• Sickness & Maternity Benefit: Cash compensation for loss of wages during periods of certified sickness or pregnancy.

• Disablement Benefit: Monthly pension for permanent disability arising out of employment injury.

• Dependents’ Benefit: Financial support to the dependents of an insured person who dies due to employment-related injury or occupational disease.

• Preventive Care: Newly introduced annual health check-ups for workers aged 40 years and above under the new Labour Codes.

Significance:

• It acts as a cornerstone of India’s social protection architecture, preventing poverty by protecting the family’s breadwinners.

• Through MoUs with NHA (convergence with Ayushman Bharat) and NABL (quality standards), it is modernizing healthcare delivery.

Human Papillomavirus (HPV) Vaccination

Source: TP

Subject: Science and Technology

Context: The Government of India is set to launch a nationwide Human Papillomavirus (HPV) vaccination programme to prevent cervical cancer among adolescent girls.

About Human Papillomavirus (HPV) Vaccination:

What it is?

• The HPV vaccine is a recombinant vaccine that uses virus-like genetic material to trigger an immune response without containing a live virus.

• It is a powerful preventive tool designed to protect against high-risk variants of the Human Papillomavirus, which are responsible for the majority of cervical cancer cases globally.

Need for Vaccination:

• High Disease Burden: Cervical cancer is the second most common cancer among women in India.

• High Mortality: India reports nearly 80,000 new cases and over 42,000 deaths annually—roughly one death every eight minutes.

• Global Impact: India accounts for about one-fifth of the world’s total cervical cancer burden.

• Preventability: According to the WHO, cervical cancer is one of the most preventable forms of cancer if vaccination and screening are widely accessible.

Vector for HPV:

The Human Papillomavirus (HPV) is the primary cause of cervical cancer.

• It is a common sexually transmitted infection that persistent infection with high-risk types (particularly 16 and 18) causes abnormal cell changes in the cervix.

• If left untreated, these pre-cancerous lesions can develop into cancer over 10 to 15 years.

Key Features of the Initiative:

• Target Group: Specifically girls who turn 14 years old, as the vaccine is most effective before potential exposure to the virus and generates a stronger immune response at this age.

• Vaccine Used: The programme will use Gardasil-4 (manufactured by Merck & Co.), which protects against four HPV types (16, 18, 6, and 11).

• Dosage Schedule: The government has opted for a single-dose schedule, which WHO research (2022) indicates provides protection comparable to multi-dose regimens for this age group.

• Cost & Access: The vaccine will be voluntary and free of cost at government healthcare facilities like Ayushman Arogya Mandirs and district hospitals.

• Digital Platform: Parents can register and book appointments through U-WIN, the government’s digital immunisation platform.

Significance:

• Vaccination can reduce the risk of developing pre-cancer and cervical cancer by approximately 90% to 95%.

• By providing the vaccine for free, the government removes the significant cost barrier associated with private market vaccines.

Congo Lakes (Mai Ndombe and Tumba)

Source: DD News

Subject: Environment

Context: A recent scientific study has found that lakes (Mai Ndombe and Tumba) in the Congo Basin are releasing ancient carbon stored for thousands of years in surrounding peatlands, raising fresh climate concerns.

About Congo Lakes (Mai Ndombe and Tumba):

What they are?

• Lakes Mai Ndombe and Tumba are large, shallow blackwater lakes characterized by their dark, tea-like color. This unique appearance is caused by high concentrations of dissolved organic matter and humic acids leached from the surrounding dense swamp forests and peatlands.

Location:

• Country: Democratic Republic of Congo (DRC).

• Region: Situated within the Cuvette Centrale (Central Basin), a vast depression in the heart of the Congo Basin.

• Wetland Status: They form part of the Tumba-Ngiri-Maindombe area, the world’s largest Wetland of International Importance recognized by the Ramsar Convention.

Formation:

• These lakes are primarily floodplain and wetland-origin lakes, formed through riverine processes associated with the Congo River system.

• Continuous waterlogging led to the accumulation of organic plant material over thousands of years, forming deep peat deposits around the lakes.

• Peat formation occurs when dead vegetation accumulates faster than decomposition under oxygen-poor conditions.

Key Features:

• Shallow Depth: Both lakes are extremely shallow, with average depths of only 3 to 5 meters.

• Blackwater Ecosystem: The high acidity (pH 4.0–5.5) and low oxygen levels in the surrounding flooded forests create a unique habitat for endemic fish species.

• Size Fluctuation: The lakes are highly dynamic, with Lake Mai Ndombe doubling or tripling in size during the rainy season.

• Carbon Reservoir: The surrounding peatlands cover only 0.3% of Earth’s land surface but hold one-third of all tropical peatland carbon (approx. 30 billion metric tons).

Reason for carbon emission:

• Research shows up to 40% of CO₂ emissions from these lakes originate from ancient peat carbon (over 3,000 years old).

• Carbon likely moves from peatlands into lake water and escapes into the atmosphere.

• Key contributing factors include: Drying of peatlands, which reactivates decomposition processes. Climate change, increasing drought and temperature stress. Land-use change, such as deforestation and conversion to cropland.

• Drying of peatlands, which reactivates decomposition processes.

• Climate change, increasing drought and temperature stress.

• Land-use change, such as deforestation and conversion to cropland.

Military Exercises in News

Source: ET

Subject: Security

Context: India has commenced two major joint military exercises — Exercise DHARMA GUARDIAN (India–Japan) and Exercise VAJRA PRAHAR (India–US) — aimed at strengthening defence cooperation and interoperability.

About Military Exercises in News:

What it is?

• Military exercises are joint training operations conducted between armed forces of two or more countries to enhance interoperability, operational readiness, and strategic cooperation.

• They help participating nations share best practices, improve tactical coordination, and strengthen defence partnerships through realistic combat simulations.

About Exercise DHARMA GUARDIAN:

• What it is?

• A bilateral annual military exercise between the Indian Army and the Japan Ground Self-Defense Force (JGSDF). The exercise focuses on joint operations in semi-urban environments and improving coordinated military responses.

• A bilateral annual military exercise between the Indian Army and the Japan Ground Self-Defense Force (JGSDF).

• The exercise focuses on joint operations in semi-urban environments and improving coordinated military responses.

• Host: Foreign Training Node, Chaubattia, Uttarakhand (India)

• Nations involved: India and Japan

• Key features:

• Focus on joint tactical drills including cordon-and-search operations and house intervention. Emphasis on modern technology and interoperability, including ISR (Intelligence, Surveillance & Reconnaissance) grid development. Training includes heliborne operations and temporary operating base establishment for realistic combat simulation.

• Focus on joint tactical drills including cordon-and-search operations and house intervention.

• Emphasis on modern technology and interoperability, including ISR (Intelligence, Surveillance & Reconnaissance) grid development.

• Training includes heliborne operations and temporary operating base establishment for realistic combat simulation.

About Exercise VAJRA PRAHAR:

• What it is?

• A joint Special Forces exercise between India and the United States aimed at enhancing cooperation in special operations. Designed to improve joint operational capability in mountainous terrain.

• A joint Special Forces exercise between India and the United States aimed at enhancing cooperation in special operations.

• Designed to improve joint operational capability in mountainous terrain.

• Host: Special Forces Training School, Bakloh, Himachal Pradesh (India)

• Nations involved: India and United States (US Green Berets)

• Key features:

• Focus on special operations tactics, techniques, and procedures (TTPs). Intensive joint mission planning and physical conditioning. Enhances interoperability, mutual trust, and professional exchange between Special Forces.

• Focus on special operations tactics, techniques, and procedures (TTPs).

• Intensive joint mission planning and physical conditioning.

• Enhances interoperability, mutual trust, and professional exchange between Special Forces.

Double Taxation Avoidance Convention (DTAC)

Source: PIB

Subject: Economy

Context: India and France have signed an Amending Protocol to update their 1992 Double Taxation Avoidance Convention (DTAC) to align with international tax standards.

About Double Taxation Avoidance Convention (DTAC):

What it is?

• A Double Taxation Avoidance Convention (also known as a DTAA or Tax Treaty) is a bilateral agreement between two countries.

• It is designed to ensure that the same income is not taxed in both the country where it is earned (the Source Country) and the country where the taxpayer resides (the Resident Country).

How it Works?

The convention allocates taxing rights between the two contracting nations based on the type of income. It typically utilizes two main methods to provide relief:

• Exemption Method: The income is taxed in only one country and is entirely exempt in the other.

• Tax Credit Method: The income is taxed in both countries, but the resident country allows the taxpayer to claim a credit for the taxes already paid in the source country.

Key Features of the Amended India-France DTAC:

• Capital Gains Taxation: Provides full taxing rights to the country where a company is resident (Source State) for gains arising from the sale of its shares.

• Revised Dividend Rates: Replaces the flat 10% rate with a split rate: 5% for those holding at least 10% of the company’s capital and 15% for all other cases.

• MFN Clause Deletion: Formally removes the Most-Favoured-Nation (MFN) clause, ending interpretational disputes and ensuring treaty benefits are limited to the specific agreed terms.

• BEPS Integration: Incorporates provisions from the Base Erosion and Profit Shifting (BEPS) Multilateral Instrument (MLI) to prevent tax avoidance by multinational corporations.

• Enhanced Cooperation: Updates provisions for the Exchange of Information and introduces a new article on Assistance in Collection of Taxes to combat fiscal evasion.

• Service Permanent Establishment (PE): Expands the scope of Permanent Establishment by adding Service PE and aligns the definition of Fees for Technical Services with international models.

Significance:

• By providing a clear and predictable tax regime, it makes India and France more attractive destinations for foreign direct investment (FDI).

• The removal of the MFN clause and clarification of taxing rights on shares provides much-needed legal certainty for large portfolio investors and global corporations.

• The updated standards for information exchange help both governments track and prevent illegal financial activities and profit shifting.

#### UPSC CURRENT AFFAIRS – 25 February 2026 Mapping:

Israel

Source: HT

Subject: Mapping

Context: Prime Minister of India is undertaking a State visit to Israel at the invitation of Israeli Prime Minister Benjamin Netanyahu.

About Israel:

What it is?

• Israel is a resilient democracy located at the eastern end of the Mediterranean Sea in West Asia (the Levant).

• Established in 1948, it is the world’s only Jewish-majority nation and is recognized as a global leader in high-tech innovation, water management, and defense systems.

Capital: Jerusalem is the seat of the Israeli government, including the Knesset (Parliament) and the Supreme Court.

Bordering Nations: Lebanon, Syria, Jordan, West Bank, Egypt, Gaza Strip, and Mediterranean Sea.

Key Features:

• Four Regions: The country consists of the Mediterranean coastal plain, the central hill regions (Galilee, Samaria, Judea), the Great Rift Valley, and the Negev Desert in the south.

• The Dead Sea: Located in the Jordan Rift Valley, it is the lowest point on Earth’s surface (approx. 430m below sea level) and is famous for its extreme salinity.

• Sea of Galilee (Lake Tiberias): Israel’s largest freshwater lake and a primary water source.

• Tectonic Setting: Israel sits on the Dead Sea Transform fault system, a boundary between the African and Arabian plates, leading to significant geological activity.

• Water Scarcity: Despite having no navigable rivers and chronic water shortages, Israel has pioneered desalination and drip irrigation technologies.

Significance:

• Israel is one of India’s top defense suppliers and a knowledge partner in the India-Israel Agricultural Project (IIAP).

• Known as the Startup Nation, it leads the world in R&D spending per capita, particularly in Cyber Security, AI, and Quantum Computing.

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