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Key Terms & Concepts — UPSC Mains

Concessional

GS3 GS2

"Involving reduced rates, subsidised terms, or special favourable conditions, especially in the context of loans, finan..."

Definition

Involving reduced rates, subsidised terms, or special favourable conditions, especially in the context of loans, financing, or trade arrangements extended to developing countries.

⭐ Significance for UPSC

Frequently appears in Economy and IR answers. Concessional loans from multilateral institutions (World Bank IDA, ADB) carry low interest rates and long repayment periods, contrast with commercial borrowing. Also relevant to India's development partnerships and South-South cooperation.

Example / Context
India extends concessional lines of credit to African nations through EXIM Bank to fund infrastructure projects, strengthening bilateral ties under the India-Africa Forum Summit framework.
Mains GS Relevance
GS Paper 3
Economy, Environment, S&T, Security
GS Paper 2
Polity, Governance, IR, Social Justice
Subject
Economy International Relations
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