Daily Current Affairs (DCA) 03 & 04 February, 2026

Daily Current Affairs Quiz
03 & 04 February, 2026

National Affairs

1. Wetlands as a National Public Good

Source: The Hindu

Context:

India observed World Wetlands Day 2026 under the theme “Wetlands and traditional knowledge”, highlighting the cultural–ecological linkages of wetlands. On this occasion, India added two new Ramsar sites — Patna Bird Sanctuary (Uttar Pradesh) and Chhari-Dhand (Gujarat) — taking the national total to 98 Ramsar sites, the highest in South Asia.

What are Wetlands and Why are They a National Public Good?

Wetlands are ecosystems where land is permanently or seasonally saturated with water, either fresh, brackish, or saline. They include marshes, swamps, floodplains, mangroves, peatlands, lakes, lagoons, and human-made systems such as tanks and paddy fields.

Why a National Public Good?

Wetlands qualify as national public goods because:

• Their benefits are non-excludable (no one can be easily prevented from benefiting)
• Their services are largely non-rivalrous (one person’s use does not diminish another’s)

They provide ecosystem services essential to society at large—flood control, groundwater recharge, water purification, climate regulation, biodiversity conservation, and livelihoods—which markets often fail to value adequately.

Key Characteristics of Wetlands

1. Hydrology
   Presence of water at or near the surface for at least part of the year, determining wetland functions.
2. Hydric Soils
   Anaerobic, waterlogged soils formed due to prolonged saturation.
3. Hydrophytes
   Specialized vegetation (e.g., mangroves, reeds, sedges) adapted to low-oxygen conditions.
4. Ecotone Status
   Act as transition zones between terrestrial and aquatic ecosystems, enhancing ecological productivity and resilience.

Status of Wetlands in India

• Ramsar Network: 98 Ramsar sites (as of February 2026)
• Geographical Coverage: ~5% of India’s land area (≈15.9 million hectares)
• Rate of Loss: Nearly 40% of natural wetlands lost in the last three decades
• Leading State: Tamil Nadu (20 Ramsar sites)

Despite global recognition, ecological degradation remains widespread, even within notified wetlands.

Importance of Wetlands as a Public Good

1. Flood Mitigation

Wetlands act as natural sponges, absorbing excess rainfall and moderating floods.

• Example: Deepor Beel absorbs nearly 40% of Brahmaputra overflow, protecting Guwahati from severe floods.

2. Water Purification

Wetlands naturally filter pollutants such as nutrients, sediments, and heavy metals.

• Example: East Kolkata Wetlands treat ~750 million litres of sewage daily, saving substantial public expenditure.

3. Climate Resilience & Carbon Storage

Wetlands are significant carbon sinks and act as buffers against extreme weather.

• Example: Bhitarkanika Mangroves reduced wind impact during Cyclone Dana (2024), protecting inland habitations.

4. Livelihood Security

Millions depend on wetlands for fisheries, agriculture, fodder, and allied activities.

• Example: Kuttanad supports below-sea-level farming, producing over 6 lakh tonnes of rice annually.

5. Biodiversity Hotspots

Wetlands support nearly 40% of global species, including migratory birds and endemic fauna.

• Example: Chhari-Dhand hosts flamingos and supports breeding of endangered species like the Desert Fox.

2. Miniratna Category-I Status to Yantra India Limited (YIL)

Source: News on Air

Context:

Raksha Mantri Rajnath Singh approved Miniratna Category-I status to Yantra India Limited.

What is Miniratna Status?

Miniratna is a classification accorded to profit-making Central Public Sector Enterprises (CPSEs) to provide enhanced financial and operational autonomy, enabling faster and more competitive decision-making—below Navratna and Maharatna levels.

Historical Background

• Introduced: October 1997
• By: Government of India
• Objective:
  • Decentralise decision-making
  • Empower efficient CPSEs through delegated financial powers
  • Reduce procedural delays and improve commercial efficiency

Types of Miniratna CPSEs

1. Miniratna Category-I – Higher financial and operational autonomy
2. Miniratna Category-II – Moderate autonomy

Eligibility Criteria for Miniratna Status

Common Conditions (Category-I & II)

• Continuous profit in the last 3 years
• Positive net worth
• No default in repayment of Government loans/interest
• No dependence on budgetary support or Government guarantees
• Board restructuring with at least three independent (non-official) directors

Additional Criteria

• Category-I:
  • Pre-tax profit of ₹30 crore or more in at least one of the last three years
• Category-II:
  • Profit in all three years (no minimum profit threshold)

3. Addition of 2 New Wetlands to India’s Ramsar List

Source: TOI

Context:

The Union Environment Minister announced the inclusion of Patna Bird Sanctuary (Uttar Pradesh) and Chhari Dhand Wetland Reserve (Gujarat) in India’s Ramsar List ahead of World Wetlands Day 2026. With this, India now has 98 Ramsar sites, marking a 276% increase since 2014.

What is the Ramsar Convention?

• An international treaty for the conservation and wise use of wetlands
• Adopted in 1971 at Ramsar, Iran
• India became a Contracting Party on 1 February 1982
• Ramsar sites serve as model ecosystems for:
  • Biodiversity conservation
  • Climate resilience
  • Sustainable livelihoods

Newly Designated Ramsar Sites (2026)

1. Patna Bird Sanctuary

What it is

• A protected bird sanctuary and wetland ecosystem
• Also known as Patna Vihar Bird Sanctuary

Location

• Etah district, Uttar Pradesh

Key Facts

• Established: 1991
• Area: 108 hectares (wetland area ~1 km²)
• Smallest bird sanctuary in Uttar Pradesh

Important Avifauna

• Lesser Whistling Duck
• Graylag Goose
• Ruddy Shelduck
• Gadwall
• Eurasian Wigeon
• Northern Pintail

2. Chhari Dhand Wetland Reserve

What it is

• A seasonal desert wetland with unique saline–freshwater interactions

Location

• Kutch district, Gujarat
• Lies between:
  • Banni Grasslands
  • Rann of Kutch

Local Meaning

• Chhari = Salty
• Dhand = Shallow wetland

Key Features

• Becomes swampy during monsoon
• Fed by north-flowing rivers and surrounding hills
• Crucial habitat for migratory birds in monsoon and winter

Endangered & Notable Species

• Dalmatian Pelican
• Oriental Darter
• Black-necked Stork
• Indian Skimmer
• Large congregations of:
  • Flamingos
  • Cranes
  • Painted storks
  • Raptors
  • Spoonbills

4. Motion of Thanks to President’s Address

Source: News on Air

Context:

Both Houses of Parliament discussed the Motion of Thanks following the President’s Address delivered by Droupadi Murmu at the start of the Budget Session.

What is the Motion of Thanks?

• A formal resolution moved in both Houses of Parliament to express gratitude to the President for the Special Address to a joint sitting of Parliament.
• The Address is delivered:
  • At the beginning of each year’s first session, and
  • After a general election.
• It provides Parliament an opportunity to debate, critique, and assess the policies and programmes of the Government outlined in the Address.

Origin and Background

• Rooted in the Westminster parliamentary tradition, adapted to India’s constitutional framework.
• The President’s Address is essentially the Government’s policy statement, drafted by the Council of Ministers and approved by the Cabinet.
• No direct discussion takes place on the Address itself; discussion is enabled only through the Motion of Thanks.

Constitutional Provisions

• Article 86(1): Empowers the President to address either House or both Houses assembled together.
• Article 87(1): Mandates a Special Address by the President:
  • At the commencement of the first session after a general election, and
  • At the commencement of the first session of every year.
• Article 87(2): Requires Parliament to frame rules for discussion on matters referred to in the Address—implemented via the Motion of Thanks.

5. IOM Global Appeal 2026 Report

Source: International Organization for Migration

Context:

IOM has sought USD 4.7 billion to assist 41 million people globally in 2026, signalling sharper prioritisation amid a Humanitarian Reset and a constrained global funding environment.

What is the IOM Global Appeal 2026?

• The Global Appeal 2026 is IOM’s operational and financing blueprint, aligned with its Strategic Plan 2024–2028.
• It aims to:
  • Deliver life-saving humanitarian assistance
  • Advance durable solutions to displacement
  • Facilitate safe, orderly, and regular migration pathways
  • Support vulnerable populations across migration corridors

Key Findings & Trends

• Record Internal Displacement: 83.4 million internally displaced persons (end-2024) — highest on record.
• Climate Acceleration: Disaster-related displacement rose to 9.8 million (2024) — +29% YoY.
• Deadliest Year for Migrants: ≥9,197 deaths (2024) — highest since 2014.
• Remittances: USD 905 billion (2024) — critical macroeconomic lifeline for many countries.
• Narrow Regular Pathways: <20% of assessed countries have programmes for regular labour migration.
• Workforce Indispensability: 168 million migrant workers globally, vital in healthcare, care economy, innovation.
• Funding Gap: Of USD 4.7 bn required, USD 1.3 bn secured → USD 3.4 bn shortfall.

Reasons for Migration

1. Economic Opportunity: Labour shortages and innovation pull (168 million workers).
2. Conflict & Violence: Protracted crises (e.g., Sudan, DR Congo).
3. Environmental Degradation: Climate shocks and extreme weather.
4. Protracted Displacement: Long stays erode local coping capacity, prompting onward movement.
5. Inequality & Hardship: Push toward risky, irregular routes in search of dignity.

Key Challenges Highlighted

• Social Security Deficits: Insecure jobs; limited access to welfare/health systems.
  • India example: Despite eShram, many urban migrants struggle to access state-specific benefits.
• Hazardous Living Conditions: Informal settlements; poor WASH outcomes.
  • India example: Overcrowding in Dharavi (Mumbai) affects water and waste services.
• Exploitation & Low Wages: Weak legal protection; unsafe worksites; wage theft.
  • India example: Seasonal construction labour from Bihar/UP.
• Restrictive Global Policies: Narrower admission rules.
  • Example: H-1B changes (2025)—higher fees, wage-weighted selection.
• Harmful Narratives & Misinformation: Fuels exclusion and policy tightening.
  • Example: Student and migration caps in UK/Canada (2025).

Way Forward (IOM’s Recommendations)

• Route-Based Approach: Integrated, corridor-wide responses over fragmented actions.
• Enhanced Localization: Empower local/national actors to lead.
• Regular Pathway Expansion: Flexible channels aligned to real labour-market needs.
• Data-Driven Solutions: Scale Displacement Tracking Matrix (DTM) for actionable insights.
• Resilience Funding: Increase flexible, unearmarked funds for agile field operations.

6. Waste-pickers Enumeration under NAMASTE Scheme

Source: TH

Context:

The Union government released nationwide enumeration data of waste-pickers for the first time under the NAMASTE scheme, revealing sharp social stratification within informal urban labour.

What is NAMASTE?

• NAMASTE (National Action for Mechanised Sanitation Ecosystem) is a central initiative aimed at:
  • Eliminating hazardous sanitation work
  • Mechanising sewer/septic tank cleaning
  • Ensuring safety, dignity, and rehabilitation of sanitation workers
• Implemented by the Government of India in partnership with States/UTs and Urban Local Bodies (ULBs).

Key Enumeration Findings

Overall Numbers

• Total waste-pickers enumerated: 52 lakh
• Coverage: 35 States/UTs
• Social composition: 84.5% belong to SC, ST, and OBC communities

Regional Outliers

• General category majority: Delhi and Goa
• West Bengal: 42.4% from the General category

Linked Sanitation Data

• Sewer/Septic tank workers: 91.95% from SC/ST/OBC groups
  → Indicates continuity between waste-picking and hazardous sanitation work along caste lines.

7. Solid Fuel Ducted Ramjet (SFDR) Technology

Source: TH

Context:

The Defence Research and Development Organisation (DRDO) successfully demonstrated Solid Fuel Ducted Ramjet (SFDR) technology from the Integrated Test Range, Chandipur.

What is SFDR Technology?

• SFDR is an air-breathing missile propulsion system that:
  • Uses atmospheric oxygen for combustion
  • Burns solid fuel in a controlled manner
• It provides sustained thrust at supersonic speeds, unlike conventional rockets that burn out early.
• Ensures high energy retention, especially during the terminal phase of missile flight.

How SFDR Works

1. Initial Acceleration
   • A nozzle-less booster accelerates the missile to the required Mach number.
2. Ramjet Takeover
   • At high speed, atmospheric air is ingested and compressed naturally due to forward motion (no rotating compressors).
3. Controlled Combustion
   • Solid fuel burns steadily inside the duct.
   • Combustion is regulated by an indigenous fuel flow control system.
4. Sustained Thrust
   • Continuous thrust keeps the missile fast, stable, and highly manoeuvrable until impact.

Key Features of SFDR

• Air-breathing propulsion
  • No onboard oxidiser → more fuel space and longer range
• Sustained high-speed flight
  • Maintains supersonic velocity throughout flight
• High terminal energy
  • Retains speed in final phase → greater lethality against agile targets
• Enhanced end-game manoeuvrability
  • Continuous thrust allows sharp evasive turns
  • Makes interception by enemy air defence extremely difficult
• Reduced drag & improved range
  • Optimised airflow minimises energy losses
• Indigenous supersonic combustion control
  • Stable fuel-air combustion at high Mach numbers achieved domestically
  • Considered a major technological breakthrough

Applications & Strategic Significance

1. Beyond Visual Range Air-to-Air Missiles (BVRAAMs)

• Enables long-range engagement of enemy aircraft
• Maintains high kill probability at extended distances

2. Air Superiority & BVR Combat Edge

• Allows first-strike capability
• Enhances pilot survivability by enabling safe disengagement

3. Defence Indigenisation

• Reduces dependence on foreign propulsion technologies
• Strengthens Aatmanirbhar Bharat in advanced missile systems

8. Peacocks

Source: TOI

Context:

A pair of peacocks was spotted at over 6,000 ft (~1,800 m) near Manali in Himachal Pradesh, an ecologically unusual altitude for a species typically associated with warmer lowland regions.

What are Peacocks?

• Peacocks are large, colourful birds of the pheasant family (Phasianidae).
• Collectively called peafowl:
  • Male: Peacock
  • Female: Peahen
  • Young: Peachicks
• India’s national bird is the Indian / Blue Peacock (Pavo cristatus).

Habitat & Distribution

• Natural habitats:
  • Warm semi-arid to moist deciduous forests
  • Grasslands and agricultural landscapes
• Indian distribution:
  • Mostly plains and low hills
• Typical altitude range:
  • Up to ~1,000 m
  • Occasionally up to ~1,500 m
• Why the Manali sighting is unusual:
  • Recent observation at ~1,800 m (6,000 ft) exceeds the species’ normal altitudinal range
  • Suggests behavioural flexibility, habitat expansion, or climate-linked shifts

IUCN Conservation Status

• Indian (Blue) Peacock (Pavo cristatus): Least Concern
• Green (Javanese) Peacock (Pavo muticus): Endangered
• Congo Peacock (Afropavo congensis): Vulnerable

9. Turtle Trails

Context:

The Union Budget 2026–27 proposed developing ‘turtle trails’ along key Olive Ridley nesting sites in Odisha, Karnataka, and Kerala to promote eco-tourism with conservation safeguards.

What are Turtle Trails?

• Turtle trails are regulated eco-tourism pathways and guided experiences near sea turtle nesting beaches.
• Objectives:
  • Conservation awareness and protection of nesting habitats
  • Community livelihoods through nature-based tourism
  • Low-impact tourism aligned with sustainability principles

States & Locations Involved

• Odisha
  • Rushikulya
  • Vicinity of Gahirmatha
• Karnataka
  • Coastal turtle nesting beaches along the Arabian Sea
• Kerala
  • Key nesting stretches along the Arabian Sea coast

Key Features of Turtle Trails

• Guided & regulated access
  • Entry limited by time/season (typically breeding season)
  • Trained guides to prevent disturbance to turtles and nests
• Awareness & education
  • Interpretation on marine biodiversity, turtle life cycles, threats
• Community participation
  • Involvement of local fishers, volunteers, self-help groups, NGOs
• Low-impact infrastructure
  • Temporary walkways, observation zones (as proposed)
  • Minimal lighting and noise to avoid hatchling disorientation
• Policy integration
  • Aligned with eco-tourism policies, livelihood generation, and sustainable tourism goals

10. AYUSH Ministry to Invite Proposals for New Ayurveda Institutes

Source: The Hindu

Context:

The Union Minister of State for AYUSH, Prataprao Jadhav, announced that the Ministry of AYUSH will soon invite proposals from States to establish three new All India Institutes of Ayurveda (AIIAs), as announced in the Union Budget 2026–27.

The move signals a strategic expansion of Ayurveda-based tertiary healthcare, education, and research infrastructure across India.

What are All India Institutes of Ayurveda (AIIAs)?

• AIIAs are apex institutions for Ayurveda, on the lines of AIIMS in allopathic medicine
• Mandate includes:
  • High-quality undergraduate and postgraduate education
  • Advanced research in Ayurveda and integrative medicine
  • Tertiary-level healthcare services
  • Standard-setting for Ayurveda education and practice

They function as centres of excellence to modernise and mainstream Ayurveda.

Key Budgetary and Policy Signals

1Increased Budget Allocation for AYUSH

• AYUSH Budget 2025–26 (RE): ₹3,671.82 crore
• AYUSH Budget 2026–27 (BE): ₹4,408.93 crore
• Increase: ~10%

This increase reflects the government’s intent to:

• Strengthen traditional systems of medicine
• Integrate AYUSH with mainstream healthcare delivery
• Build skilled human resources

11. Members of Parliament Local Area Development Scheme (MPLADS)

Context:

The Members of Parliament Local Area Development Scheme (MPLADS), launched in December 1993, has once again come under scrutiny following allegations of misuse by some Members of Parliament.

MPLADS is a Central Sector Scheme, fully funded by the Government of India, that allows MPs to recommend developmental works worth ₹5 crore annually, primarily for creating durable community assets such as roads, schools, drinking water facilities, and health infrastructure.

MPLADS Funds (Members of Parliament Local Area Development Scheme)

• MPLADS is a Central Sector Scheme that enables Members of Parliament to recommend developmental works in their constituencies with an emphasis on creation of durable community assets.
• Introduced in 1993.

Key Features

Annual Allocation

• ₹5 crore per MP per year
  • Applicable to Lok Sabha MPs
  • Rajya Sabha MPs can recommend works anywhere in the State/UT they represent
  • Nominated MPs can recommend works anywhere in the country

Nature of Works

• Creation of durable assets such as:
  • Drinking water facilities
  • Roads, bridges, culverts
  • School buildings, toilets
  • Health infrastructure
  • Community halls
• No private or individual assets allowed.

12. Pennaiyar River

Context:

The Supreme Court of India directed the Union Government to constitute an Inter-State River Water Disputes Tribunal within one month to resolve the Pennaiyar water dispute between Tamil Nadu and Karnataka.
The suit was filed by Tamil Nadu under Article 131 invoking the Inter-State River Water Disputes Act, 1956.

What is the Pennaiyar River?

• An east-flowing inter-state river of southern India
• Known as:
  • Thenpennai / Ponnaiyar (Tamil)
  • Dakshina Pinakini (Kannada)
• Crucial for irrigation, industry, and drinking water security, especially in Tamil Nadu

Origin

• Originates in the Nandi Hills
• Located in Chikkaballapura district, Karnataka
• Part of the Eastern Ghats river system
  (Important prelims trap: not a Western Ghats river)

States Covered

• Karnataka – Upper riparian state
• Tamil Nadu – Lower riparian state

Banking/Finance

1.16th Finance Commission (2026–31)

Why in News?

The 16th Finance Commission report was tabled in Parliament of India on 1 February 2026 by Finance Minister Nirmala Sitharaman, alongside the Union Budget.
The government accepted the key recommendation to retain States’ share in central taxes at 41% for 2026–31.

I. Vertical Devolution (Centre → States)

• States’ Share: 41% of the divisible pool (unchanged from the 15th FC).
• Divisible Pool: Centre’s gross tax revenue minus cesses, surcharges, and cost of collection.
• Impact: Stability and predictability in transfers; reinforces fiscal federalism.

II. Horizontal Devolution (Among States)

Recalibrated formula with revised weights and a new parameter.

Devolution Criteria: 15th FC vs 16th FC

Criteria	15th FC	16th FC	Key Change
Income Distance	45%	42.5%	Slight reduction
Population (2011)	15%	17.5%	Increased
Demographic Performance	12.5%	10%	Redefined
Area	15%	10%	Reduced
Forest & Ecology	10%	10%	Expanded scope
Tax Effort	2.5%	0%	Dropped
Contribution to GDP	0%	10%	New
Total	100%	100%

Key Changes Explained

• Income Distance: Gap in per-capita GSDP vis-à-vis top-3 states (avg. 2018-19 & 2023-24; 2020-21 excluded).
• Contribution to GDP (10%): Rewards economic size using √GSDP (balances scale without overpowering).
• Forest & Ecology: Includes open forests and increase in forest cover (2015–23).
• Demographic Performance: Shift from TFR to population growth (1971–2011).
• Tax Effort: Removed.

III. Grants-in-Aid (Total: ₹9.47 lakh crore)

Streamlining: Revenue-deficit, sector-specific, and state-specific grants discontinued.

A. Local Body Grants (₹7,91,493 crore)

• Rural: ₹4.35 lakh crore
• Urban: ₹3.56 lakh crore
• Structure: 80% Basic (of which 50% tied to water & sanitation) + 20% Performance
• New Urban Components:
  • Special Infrastructure Grant (₹56,100 cr): Wastewater management (cities 10–40 lakh population)
  • Urbanisation Premium (₹10,000 cr): One-time support for peri-urban mergers and rural-urban transition policies
• Conditionalities: Timely State Finance Commissions, audited accounts, proper constitution of local bodies.

B. Disaster Management Grants (₹1,55,916 crore)

• For SDRF/SDMF.
• Cost Sharing:
  • 90:10 (NE & Himalayan states)
  • 75:25 (others)

IV. Fiscal Roadmap & Debt Management

• Centre FD: Reduce to 3.5% of GDP by 2030–31.
• States FD: Cap at 3% of GSDP.
• Off-Budget Borrowings: Discontinue; bring fully on-budget; uniform debt definition.
• Combined Debt: Projected to fall 77.3% (2026-27) → 73.1% (2030-31).

V. Power Sector Reforms

• DISCOM Privatisation: Actively pursue.
• SPV: Warehouse existing DISCOM debt.
• Conditional Central Aid: Access to Special Assistance for Capital Investment only post-privatisation.

VI. Subsidy Rationalisation

• Review and better targeting with clear exclusion criteria.
• Move away from unconditional cash transfers.
• No off-budget financing of subsidies.
• Uniform accounting & disclosure across states.

VII. State Public Sector Enterprise (SPSE) Reforms

• Review/close 308 inactive SPSEs.
• State-level disinvestment policy for underperformers.
• Loss-making SPSEs (losses in 3 of 4 years) to go to Cabinet for closure/privatisation/strategic continuation.

2. SBI launches ‘CHAKRA’ Centre of Excellence

Source: TH

Context:

State Bank of India has launched ‘CHAKRA’, a dedicated Centre of Excellence (CoE) to strengthen financing for eight critical sunrise sectors.

What is CHAKRA?

CHAKRA (Centre of Excellence) is a knowledge-led institutional platform created by SBI to enhance its capability to finance capital-intensive, technology-driven sunrise sectors by integrating:

• Sectoral expertise
• Advanced risk assessment
• Innovative and policy-aligned financing models

Aim

• Build institutional expertise in emerging, technology-led sectors
• Improve the flow of domestic and international debt capital into sunrise industries
• Develop innovative financing structures aligned with national policy priorities

3. Centre Tops Up RDI Fund with ₹20,000 Crore

Source: Business Standard

Context:

In the Union Budget 2026–27, Finance Minister Nirmala Sitharaman announced a ₹20,000 crore top-up to the Research, Development and Innovation (RDI) Fund, continuing last year’s allocation and reaffirming the government’s commitment to building a strong domestic R&D and deep-tech ecosystem.

The RDI Fund is the largest component of the ₹23,125 crore earmarked for Central Sector schemes under the Ministry of Science and Technology.

What Is the RDI Fund?

• Total Fund Size: ₹1 trillion
• Deployment Period: 7 years (Cabinet-approved)
• Objective:
  • Support long-gestation, high-risk R&D
  • Promote indigenous product innovation
  • Crowd-in private capital into deep-tech and frontier research
• Launch: November 2025 by Narendra Modi

4. From UPI to CBDCs: India Sets Digital Payments Agenda at BRICS

Source: ET

Context:

During its BRICS presidency, India is expected to push for seamless cross-border digital payments among member countries using Central Bank Digital Currencies (CBDCs). This initiative builds on earlier BRICS commitments to interoperability of payment systems and reflects India’s growing leadership in Digital Public Infrastructure (DPI).

India will host the BRICS Summit later this year, providing a strategic platform to advance this agenda.

About BRICS

BRICS is a 10-member grouping that includes:

• Brazil
• Russia
• India
• China
• South Africa
• Along with newly inducted members (expansion phase)

The grouping aims to enhance economic cooperation, financial resilience, and South–South collaboration.

What Is India Proposing?

1. Cross-Border CBDC Payments

• Promote interoperable CBDC-based settlement systems among BRICS central banks.
• Enable direct, faster, cheaper, and secure cross-border transactions without relying on correspondent banking.

2. Payment System Interoperability

• Build on the 2025 BRICS declaration, which supported interoperability among national payment systems.
• Align technology, regulatory standards, cybersecurity protocols, and settlement mechanisms.

3. Reducing Dependence on Traditional Systems

• Lower reliance on:
  • SWIFT
  • Dollar-dominated settlement channels
• Enhance financial sovereignty of Global South economies.

Why CBDCs, Not Stablecoins?

RBI Governor Sanjay Malhotra, speaking in Washington DC (Nov 2025), stressed:

• CBDCs are:
  • Sovereign-backed
  • Regulated
  • Less prone to volatility and regulatory arbitrage
• Stablecoins:
  • Often privately issued
  • Pose risks to monetary sovereignty and financial stability

4. SBI launches CHAKRA

Source: TH

Why in news?

State Bank of India (SBI) has launched CHAKRA, a Centre of Excellence (CoE) to support financing of sunrise sectors, with a potential investment of ₹100 trillion over the next five years.

What is CHAKRA?

• CHAKRA is a dedicated Centre of Excellence for financing sunrise sectors.
• It aims to strengthen project financing, co-financing, risk assessment, and patient capital structures.
• The initiative builds on SBI’s earlier Centre of Excellence for MSMEs at the State Bank Academy.

Key Sunrise Sectors Covered

• Renewable energy
• Advanced cell chemistry & battery storage
• Semiconductors
• Electric mobility & decarbonisation
• Smart infrastructure
• Data centre infrastructure

Institutional Partnerships

• SBI has signed MoUs with 21 financial institutions.
• Includes:
  • Japanese banks such as SMBC and MUFG
  • Indian institutions like PFC, REC, and NaBFID
• Discussions ongoing with European and American banks.
• Objective: Co-financing, capacity building, and risk sharing.

Rationale Behind CHAKRA

• Sunrise sectors involve high capital needs and new technology risks.
• Cannot rely solely on deposit-funded bank lending.
• Need for patient capital and participation from:
  • Banks
  • NBFCs
  • Development finance institutions
  • Global investors

Functions of CHAKRA

• Preparation of white papers and sector reports
• Industry roundtables and policy dialogues
• Structured engagement with:
  • Multilateral agencies
  • Start-ups and corporates
  • Academia and think tanks

5. SEBI Likely to Extend Ban on Agricultural Futures

Source: Economic Times

Context:

The market regulator Securities and Exchange Board of India (SEBI) is likely to extend the ban on futures trading in key agricultural commodities by another year, beyond its scheduled end in March 2026.

The ban, first imposed in 2021, aims to curb price volatility, speculation, and food inflation, especially in essential commodities that directly affect household consumption.

Agricultural Commodities Under the Ban

Futures trading remains suspended in seven major agri-commodities:

1. Non-basmati paddy
2. Wheat
3. Chana (gram)
4. Mustard seed and its derivatives
5. Soybean and its derivatives
6. Crude palm oil
7. Moong (green gram)

These commodities form a significant part of India’s food basket, making their price stability a political and economic priority.

What are Agricultural Commodities?

Agricultural commodities are primary goods produced through agriculture and allied activities that are standardised, produced in bulk, and traded in markets (spot and derivatives).

Key Features

• Derived from farming, livestock, fisheries, or plantations
• Homogeneous/standardised, enabling large-scale trade
• Prices influenced by demand–supply, weather, global markets, and policy
• Traded in mandis and commodity exchanges

Major Categories

1. Food crops: Wheat, rice, maize
2. Pulses: Chana, moong, urad
3. Oilseeds: Soybean, mustard, groundnut
4. Commercial crops: Cotton, sugarcane, tea, coffee
5. Livestock products: Milk, meat, eggs

6. RBI Proposes Resolution Framework for Borrowers Affected by Natural Calamities

Source: BS

Why in news?

Reserve Bank of India (RBI) has issued draft guidelines proposing a principle-based framework for banks and other regulated entities to implement resolution plans for borrowers impacted by natural calamities.

What has RBI proposed?

• A principle-based resolution regime giving full discretion to regulated entities (REs) in designing and implementing resolution plans.
• Banks must anticipate climate and disaster-related risks and incorporate relief and resolution measures within their credit policies.

Key Features of the Draft Guidelines

• Eligibility:
  • Borrowers who have not defaulted for more than 30 days.
• Possible Resolution Measures:
  • Rescheduling of loan repayments
  • Granting of moratorium
  • Conversion of accrued interest into a separate credit facility
  • Sanction of additional finance to address borrower stress
• Applicability:
  • Banks and all RBI-regulated entities
• Implementation date:
  • April 1
• Public consultation:
  • Feedback invited till February 17

Objectives of the Guidelines

• Enhance financial resilience of borrowers affected by natural disasters
• Prevent sudden loan slippages and NPAs
• Integrate climate risk considerations into banking regulation
• Support orderly credit resolution without compromising prudential discipline

Agriculture

1. Trees Outside Forests (TOF) / Agroforestry in India

Source: BS

Why in news?

A report to be presented at the first South Asian Agroforestry and Trees Outside Forests Congress (TREESCAPES) highlights that India can unlock the full economic, social and environmental potential of Trees Outside Forests (TOF) by focusing on four high-growth industries.

What are Trees Outside Forests (TOF)?

• TOF refers to trees growing outside notified forest areas, including:
  • Agroforestry systems
  • Farm boundary plantations
  • Trees on private, community and urban lands
• TOF is commonly associated with agroforestry in agricultural landscapes.

Status of TOF in India

• TOF cover: ~29.38 million hectares
• Accounts for 36.4% of India’s total forest and tree cover
• Major TOF species:
  • Mango, neem, babool, coconut, palash
  • Teak, ber, eucalyptus, rubber, katha
• These species account for ~40% of trees in rural India

Environmental & Social Benefits

• Reduces pressure on natural forests
• Enhances farm productivity and rural incomes
• Improves food, timber and non-timber supply
• Provides ecosystem services:
  • Carbon sequestration
  • Climate regulation
  • Clean air and water
  • Biodiversity habitats

2. Budget 2026-27: Plantations & Fisheries Central to Farm Income Strategy

Source: BS

Why in news?

The Union Budget 2026–27 has shifted focus from core food crops to allied sectors of agriculture, particularly plantations, livestock, and fisheries, as a strategy to raise farmers’ incomes through high-value agriculture.

Overall Allocation

• Allocation for agriculture and allied activities projected to grow by 7.1% in BE FY27 over RE FY26.
• This comes despite a 4.4% decline in overall sector spending in RE FY26 compared to BE FY26.
• Indicates reprioritisation within agriculture, rather than expansion of traditional crop subsidies.

Key Focus Areas

1. High-value Plantation Crops

Support announced for:

• Coconut
• Cocoa
• Cashew
• Sandalwood
• Agarwood (Northeast)
• Almonds, walnuts, pine nuts (hilly regions)

Special measures

• Coconut promotion scheme for southern states
  • Coconut supports ~30 million people, including ~10 million growers.
• Plan to make Indian cashew and cocoa premium global brands by 2030.
• Partnership with states to revive Indian sandalwood.

2. Fisheries & Aquaculture

• Proposal for integrated development of 500 reservoirs and Amrit Sarovars.
• Aim: Strengthen fisheries value chains, especially in coastal areas.
• Budget allocation for fisheries increased by nearly 60% (BE FY27 over RE FY26).

3. Livestock & Animal Husbandry

• Livestock contributes ~16% of farm income, especially for marginal farmers.
• Key announcements by Nirmala Sitharaman:
  • Loan-linked capital subsidy for:
    • Veterinary & para-vet colleges
    • Veterinary hospitals & diagnostic labs
    • Breeding facilities (private sector)
  • Target: 20,000+ additional veterinary professionals
  • Encourage livestock Farmer Producer Organisations (FPOs)
• Department of Animal Husbandry allocation up by 16% (BE FY27 over RE FY26).

4. Digital & Knowledge Initiatives

• Bharat-VISTAAR (₹150 crore):
  • Multilingual AI-based tool
  • Integrates AgriStack portals with Indian Council of Agricultural Research advisory packages.
• High-value agriculture mission: ₹350 crore.

Facts To Remember

1. Lupin launches generic cancer drug in U.S.

Lupin has launched generic cancer drug Dasatinib Tablets, in multiple strengths, in the U.S. The product, bioequivalent to Bristol-Myers Squibb Company’s Sprycel Tablets, was developed by Lupin in partnership with Pharmascience Inc. 

2. Wings India 2026 Held in Hyderabad

Asia’s largest civil aviation event, Wings India 2026, was held from 28–31 January 2026 at Begumpet Airport, Hyderabad. Inaugurated by Union Civil Aviation Minister Ram Mohan Naidu, it showcased India’s rise as the world’s 3rd-largest domestic aviation market.

3. Gujarat Becomes India’s Largest Renewable Energy Contributor

Gujarat emerged as the top contributor to India’s renewable energy capacity with 42.583 GW as of December 2025. The state leads in wind power, rooftop solar installations, and supports India’s net-zero target for 2070.

4. MHA Mandates Central Deputation for IPS IGP Posting

The Ministry of Home Affairs mandated a minimum two-year Central Deputation for IPS officers to be eligible for IGP-level posts. The move aims to strengthen leadership capacity in CAPFs and Central Police Organisations.

5. CCRAS–Berhampur University MoU on Ayurvedic Manuscripts

CCRAS signed a two-year MoU with Berhampur University to digitize and preserve rare Ayurvedic palm-leaf manuscripts. The initiative focuses on safeguarding traditional knowledge using modern technology.

6. SAIL Launches ‘SAIL-e-BRATION’ Creative Challenge

SAIL launched the SAIL-e-BRATION national challenge to highlight steel’s role in nation-building. Citizens are encouraged to submit creative digital content showcasing SAIL’s contribution to everyday life.

7. GoI Withdraws 18% Excise Duty on Unmanufactured Tobacco

The Government of India withdrew the 18% excise duty on unbranded, non-retail packed unmanufactured tobacco from February 1, 2026. The decision provides relief to farmers and small-scale suppliers.

8. Matrixport Gets In-Principle Approval in Bhutan

Matrixport received in-principle approval to offer regulated financial services in Gelephu Mindfulness City, Bhutan. Operations will commence after meeting all licensing and compliance requirements.

9. Central Bank of India Partners with HSBC AMC

Central Bank of India partnered with HSBC Asset Management India to distribute mutual fund products. The collaboration enhances investment and wealth management options for customers.

10. 68th Grammy Awards 2026 Highlights

The 14th Dalai Lama won his first Grammy, while Bad Bunny secured Album of the Year for a Spanish-language album. The awards reflected growing global diversity in music recognition.

11. Sunetra Pawar Becomes Deputy CM of Maharashtra

Sunetra Pawar was sworn in as Maharashtra’s first woman Deputy Chief Minister on January 31, 2026. She must enter the state legislature within six months to continue in office.

12. Australian Open 2026 Champions

Carlos Alcaraz and Elena Rybakina won the men’s and women’s singles titles at the Australian Open 2026. Alcaraz became the youngest man in the Open Era to complete a career Grand Slam.

13. Devika Sihag Wins Thailand Masters 2026

Indian shuttler Devika Sihag won her maiden BWF Super 300 title at the Thailand Masters 2026. She became the third Indian woman to achieve this milestone.

14. Indian Coast Guard Day 2026 – February 1

Indian Coast Guard Day commemorates the establishment of the ICG and its role in maritime security. The year 2026 marked the 50th Raising Day of the force.

15. World Wetlands Day 2026 – February 2

World Wetlands Day is observed to raise awareness about the ecological importance of wetlands. The 2026 theme highlighted the role of traditional knowledge in wetland conservation.

16. India Hosts 2nd India–Arab Foreign Ministers’ Meeting

India hosted the 2nd India–Arab Foreign Ministers’ Meeting in New Delhi after a gap of nearly 10 years. The meeting adopted the New Delhi Declaration, strengthening India–Arab League cooperation on regional and global issues.

17. NSO to Conduct Nationwide Migration Survey (2026–27)

The National Statistics Office announced a comprehensive migration survey from July 2026 to June 2027. It will generate updated data on migration patterns, labour mobility, employment, and remittance flows.

18. IHMCL–NFSU MoU on Cybersecurity in Highway Operations

IHMCL signed a three-year MoU with NFSU to enhance cybersecurity and data protection in national highway operations. The collaboration will support advanced forensics, secure imaging, and intelligent traffic systems.

19. MeitY Signs e-Signature Cooperation Pact with EU

MeitY and the EU’s DG CONNECT signed an agreement on advanced electronic signatures and seals. The pact enables cross-border digital signing, boosting trust and digital trade, especially for MSMEs.

20. MoPA Launches Upgraded Youth Parliament Portal ‘NYPS 2.0’

The Ministry of Parliamentary Affairs launched NYPS 2.0 to expand participation in the Youth Parliament programme. The upgrade allows institutions, groups, and individuals from remote areas to participate inclusively.

21. World Bank Approves USD 830 Million Loan for PM-SETU

The World Bank approved a USD 830 million loan to upgrade India’s ITIs under the PM-SETU programme. The initiative aims to align skill training with industry needs and generate over one million skilled workers annually.

22. PNB Launches ‘LUXURA Metal Credit Card’

Punjab National Bank launched the LUXURA Metal Credit Card on the Visa Infinite platform. The premium card offers luxury travel, lifestyle benefits, concierge services, and accelerated reward points.

23. Tripura Gramin Bank Launches First RRB Co-Branded RuPay Credit Card

Tripura Gramin Bank, with PNB, launched India’s first RRB co-branded RuPay credit card. The initiative enhances digital credit access for rural and semi-urban customers.

24. Yantra India Gets Miniratna Category-I Status

Defence Minister Rajnath Singh approved Miniratna Category-I status for Yantra India Limited. The status grants greater financial autonomy and strengthens indigenous defence manufacturing.

25. Kabak Yano Summits Mount Aconcagua

Arunachal Pradesh mountaineer Kabak Yano successfully scaled Mount Aconcagua in Argentina. She became the first woman from the Nyishi community to achieve this milestone.

26. Climate Scientist Veerabhadran Ramanathan Wins Crafoord Prize 2026

Indian-origin scientist Veerabhadran Ramanathan won the 2026 Crafoord Prize in Geosciences. He was honoured for pioneering research on aerosols, super-pollutants, and climate change.

27. World Cancer Day 2026 – February 4

World Cancer Day was observed globally to promote cancer awareness, prevention, and equitable treatment. The 2026 theme “United by Unique” emphasised patient-centred cancer care.

28. International Day of Human Fraternity 2026 – February 4

The UN observed the International Day of Human Fraternity to promote peace, tolerance, and interfaith harmony. The day coincided with World Interfaith Harmony Week.

29. Andhra Pradesh Launches ‘Pilloo AI’ for MSMEs

Andhra Pradesh CM N. Chandrababu Naidu launched Pilloo AI, a voice-based billing and accounting platform. The tool supports MSMEs by enabling easy accounting in multiple Indian languages.