Daily current affairs: 1 January 2026

Long Description : In accordance with the 1988 Agreement on the Prohibition of Attack against Nuclear Installations and Facilities, India and Pakistan exchanged lists of their respective nuclear assets on January 1, 2026. This practice, which began in 1992, aims to build confidence and prevent military strikes on nuclear sites. Simultaneously, lists of prisoners in each other's custody were exchanged. Pakistan shared a list of 257 Indian prisoners (199 fishermen and 58 civilians), while India shared a similar list of Pakistani nationals. This ritual remains one of the few surviving diplomatic protocols between the two nations despite ongoing geopolitical tensions.

Long Description : The Union Government has rolled out the 8th Pay Commission recommendations starting today. This transition is expected to lead to a significant hike in basic pay, dearness allowance (DA), and pension benefits, aimed at neutralizing the impact of inflation over the last decade. The fitment factor—used to calculate the new basic pay—has been a point of focus for employee unions. This massive fiscal exercise not only impacts central employees but also serves as a benchmark for various state governments to revise their own pay scales, thereby influencing domestic consumption and the fiscal deficit.

Long Description : IAIRO is a multidisciplinary hub established to accelerate AI research in healthcare, agriculture, and education. It is registered as a non-profit under Section 8 of the Companies Act and operates with an initial five-year budget of ₹300 crore, shared equally by the State, Central Government, and private partners. The Indian Pharmaceutical Alliance (IPA) is the anchor private partner, contributing ₹25 crore for the first year. This facility will use a hybrid compute model, leveraging on-premise GPUs and the IndiaAI Cloud to foster innovation and create a future-ready AI workforce for the nation.

Long Description : In its latest financial stability assessment, the RBI highlighted the robust health of the Indian banking sector. The GNPA ratio has reached its lowest point in over 20 years, driven by better credit appraisal, effective recovery mechanisms like the IBC, and a shift toward secured retail and MSME assets. Net NPAs have also declined significantly, indicating improved provisioning. This stability provides a "growth runway" for 2026, allowing banks to expand credit to productive sectors. However, the RBI remains cautious about global external uncertainties and asset quality in unsecured personal loan segments.

Long Description : The Reserve Bank of India's directive for more frequent credit reporting has gone live. Credit Information Companies (CICs) must now refresh data on a weekly basis, ensuring that loan repayments, defaults, and credit utilization are reflected almost in real-time. This reform benefits borrowers by allowing faster credit score improvements after debt clearance and helps lenders mitigate risks by identifying defaults earlier. It is a significant step toward a more responsive and transparent financial ecosystem, reducing the "information lag" that previously hindered quick credit processing for consumers and small businesses.

Long Description : The 'Pralay' is a surface-to-surface, short-range ballistic missile (SRBM) with a range of 150–500 km. The salvo launch validated the missile's ability to be fired in quick succession to overwhelm enemy air defenses. It is a quasi-ballistic missile, meaning it follows a low trajectory and can maneuver in flight, making it difficult to intercept. The successful test marks a critical milestone in India’s efforts to establish a dedicated 'Rocket Force' for conventional theater-level operations, particularly along the borders with China and Pakistan.

Long Description : The report highlights that India’s IT sector and Digital Public Infrastructure (DPI) have matured to a level where the country is no longer just a back-office for global firms. Instead, it is becoming a center for advanced consulting, product development, and AI-led services. With a projected six-fold increase in per capita income by 2047, the report emphasizes that India's young workforce and rapid formalization of the economy through digital platforms are its biggest competitive advantages. To sustain this, the report recommends reducing logistics costs to 8% of GDP and deepening the corporate bond market.

Long Description : Moving beyond the chair-car format, the new Vande Bharat Sleeper trains are designed for long-distance travel (1,000–1,500 km). These trains will feature a design speed of up to 180 kmph and improved passenger amenities, including better berths, soundproofing, and modular toilets. The first route between Howrah (Kolkata) and Guwahati aims to drastically improve connectivity between the Northeast and the rest of India. The rollout is part of a larger plan to replace existing Rajdhani and Duronto trains with semi-high-speed indigenous technology, significantly reducing travel time for overnight journeys.

Long Description : To streamline the direct benefit transfer (DBT) process and eliminate leakages, the government has made unique digital IDs mandatory for PM-Kisan beneficiaries. Simultaneously, a major policy shift under the PM Kisan Crop Insurance Scheme now allows farmers to claim compensation for crops destroyed by wild animals, a long-standing demand. However, to avail of this, claims must be registered within 72 hours of the incident. These updates aim to enhance the social security net for the rural population and ensure that benefits reach verified landholders.

Long Description : The rollout of VoWiFi (Voice over WiFi) allows BSNL subscribers to make and receive calls and SMS using a Wi-Fi connection even without a mobile network. This technology is particularly useful in remote areas or high-rise buildings where cellular penetration is poor. The service does not require a separate app; it works natively on compatible smartphones. This move is part of BSNL's 2026 strategy to modernize its infrastructure and compete with private players like Jio and Airtel, alongside its ongoing 4G/5G deployment across India.

Long Description : Optical Network Terminals, which are essential for fiber-to-the-home (FTTH) broadband connections, must now undergo rigorous security and quality testing before sale in India. This move aims to secure the country’s digital infrastructure from potential cyber threats and ensure the quality of hardware used in the growing internet ecosystem. The mandatory certification replaces the voluntary phase that was in place since 2024. Companies failing to comply with these "ITSAR" (Indian Trustworthy Systems and Requirements) standards will be barred from selling their equipment in the Indian market.

Long Description : PRAGATI is a unique IT-based platform that brings together Union Government Secretaries and State Chief Secretaries under the Prime Minister to review and monitor high-value projects and public grievances. In the 50th milestone meeting, the PM emphasized the mantra of "Inform" alongside "Reform, Perform, Transform," urging ministers to communicate policy benefits better to the public. The meeting focused on resolving bottlenecks in critical infrastructure projects worth over ₹1.5 lakh crore and reviewed the progress of the PM-SVANidhi and PM-Awas Yojana schemes.

Long Description : The Russian Ministry of Defence confirmed that the Oreshnik system entered active service in Belarus on January 1, 2026. The missile is an intermediate-range ballistic missile (IRBM) with a range of up to 5,500 km and can reach speeds of Mach 10. It features Multiple Independently Targetable Reentry Vehicles (MIRVs), making it extremely difficult for missile defense systems to intercept. This deployment is seen as a strategic response to NATO's expansion and the ongoing conflict in Ukraine, marking a significant shift in the regional power balance and nuclear deterrence architecture.

Long Description : In the monthly price revision on January 1, jet fuel (ATF) prices in Delhi were cut to ₹92,323.02 per kilolitre, reflecting a decline in global crude benchmarks. This provides significant relief to the aviation sector and could lead to lower airfares. Conversely, the price of commercial LPG cylinders—used primarily by hotels and restaurants—was hiked by ₹111, which may increase the cost of dining out. Domestic LPG (cooking gas) prices remained unchanged. These revisions are part of India's dynamic pricing policy for petroleum products based on international market trends.

Long Description : The G-1 mission is the first of two uncrewed orbital tests planned to validate the Gaganyaan spacecraft before the crewed launch in 2027. This mission will carry the humanoid robot 'Vyommitra' to monitor parameters such as vibration, heat, and radiation inside the crew module. Following the success of Group Captain Shubhanshu Shukla's Axiom-4 mission to the ISS, this test is critical for proving the indigenous Environmental Control and Life Support System (ECLSS). 2026 is expected to be a milestone year for India’s human spaceflight program and private space-tech launches.

Long Description : The state cabinet has approved a policy framework to allow the cultivation of hemp, specifically for its fiber and medicinal extracts (CBD). This move is intended to boost the state's economy, provide an alternative source of income for farmers, and attract investment in the pharmaceutical and textile sectors. The policy includes strict regulations to prevent the misuse of cannabis for narcotic purposes, specifying the THC levels allowed in plants. Himachal Pradesh follows Uttarakhand and Madhya Pradesh in exploring the legal commercial potential of a plant that grows abundantly in the Himalayan region.