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Daily Current Affairs
27 & 28 January, 2026
1. The India–EU Security and Defence Partnership (SDP) primarily signifies which shift in bilateral relations?
A. From political to cultural cooperation
B. From economic aid to humanitarian support
C. From trade-centric engagement to strategic-security partnership
D. From multilateralism to bilateral isolation
E. From climate cooperation to defence manufacturing only
Answer: C. From trade-centric engagement to strategic-security partnership
Explanation: The 16th India–EU Summit marks a clear shift in relations where security, defence, and global strategic issues now complement traditional trade-focused engagement.
2. India–EU Free Trade Agreement (FTA) negotiations were originally launched in 2007 but were suspended in 2013 mainly due to:
A. WTO objections
B. Political instability in India
C. Gap in ambition between the two sides
D. EU financial crisis
E. Disagreement over defence cooperation
Answer: C. Gap in ambition between the two sides
Explanation: The FTA talks were suspended in 2013 due to differences in ambition and expectations, and were later re-launched in June 2022.
3. Which of the following institutions has financed metro rail and sustainable transport projects in India under India–EU cooperation?
A. World Bank
B. Asian Development Bank
C. European Central Bank
D. European Investment Bank
E. Asian Infrastructure Investment Bank
Answer: D. European Investment Bank
Explanation: The European Investment Bank (EIB) has supported India through financing urban rail, metro, and sustainable transport projects.
4. The Advance–Decline Ratio (ADR) falling below 1 indicates:
A. Bullish market sentiment
B. Equal number of advancing and declining stocks
C. More stocks rising than falling
D. Weak market breadth
E. High market volatility only
Answer: D. Weak market breadth
Explanation: ADR below 1 means declining stocks outnumber advancing stocks, indicating weak and narrow market participation.
5. According to RBI’s State Finances analysis, which structural factor poses a long-term fiscal risk to Indian States?
A. Rising crude oil prices
B. Demographic ageing
C. Exchange rate volatility
D. Corporate tax cuts
E. Disinvestment slowdown
Answer: B. Demographic ageing
Explanation: RBI highlights ageing populations as a structural challenge due to rising pension and healthcare costs and slower revenue growth.
6. UBS has maintained an underweight stance on Indian equities primarily due to:
A. High inflation
B. Weak fiscal discipline
C. Limited AI-linked listed companies
D. Excessive government borrowing
E. Banking sector stress
Answer: C. Limited AI-linked listed companies
Explanation: UBS notes that India lacks listed companies directly benefiting from AI, cloud, and semiconductor investment cycles.
7. The renewed ESMA–RBI information-sharing agreement is significant because it:
A. Allows EU regulators to directly inspect Indian banks
B. Restores EU recognition of Indian clearing houses
C. Merges EU and Indian stock exchanges
D. Eliminates capital controls
E. Creates a common currency framework
Answer: B. Restores EU recognition of Indian clearing houses
Explanation: The pact ends a regulatory impasse and enables Indian CCPs to regain ESMA recognition, facilitating EU banks’ access.
8. The core criticism in the “Niyat vs Niti in Farm Policy” article is that Indian agriculture suffers from:
A. Lack of farmer subsidies
B. Excess private sector control
C. Absence of coherent and accountable policy strategy
D. Low agricultural output
E. Over-mechanisation
Answer: C. Absence of coherent and accountable policy strategy
Explanation: The article argues that while political intent exists, India lacks a structured, transparent, and long-term agricultural policy framework.
9. Under the India–EU FTA, which of the following Indian sectors is explicitly protected from import concessions?
A. Tea
B. Coffee
C. Dairy
D. Spices
E. Processed foods
Answer: C. Dairy
Explanation: Sensitive sectors like dairy, cereals, and poultry are protected to safeguard domestic food security and farmer livelihoods.
10. Tariff Rate Quotas (TRQs), as used in the India–EU FTA, imply:
A. Complete elimination of import duties
B. Uniform tariff on all imports
C. Unlimited imports at concessional rates
D. Lower tariffs up to a fixed quantity, higher beyond it
E. Export subsidies for farmers
Answer: D. Lower tariffs up to a fixed quantity, higher beyond it
Explanation: TRQs allow limited imports at concessional tariffs while imposing higher duties once the quota is exceeded, balancing trade and domestic protection.
