Daily current affairs: 1 February 2026

Long Description : The Union Budget 2026-27 marks a significant departure from tradition by being the first ever presented on a Sunday. FM Nirmala Sitharaman outlined a roadmap for sustaining growth amid global volatility, projecting a fiscal deficit of 4.3% of GDP. The budget emphasizes three pillars (Kartavyas): accelerating sustainable economic growth, ensuring regional and sectoral resource access, and fulfilling the aspirations of the youth. A total capital expenditure of ₹12.2 lakh crore has been earmarked, representing a substantial increase to drive infrastructure. The government also announced the implementation of the "New Tax Act" effective from April 1, 2026, aimed at simplifying the direct tax regime.

Long Description : Building on the success of the first phase, India Semiconductor Mission 2.0 was officially unveiled during the Budget. The updated mission focuses on establishing a complete semiconductor ecosystem, including the development of homegrown equipment and materials. A key highlight is the push for "Full-stack Indian IP," reducing reliance on foreign designs. The initiative includes industry-led research and specialized training centers to create a workforce of 2 million professionals by 2030. It aligns with the "Make in India" vision to position the country as a global high-tech manufacturing hub and a secure node in the global semiconductor supply chain.

Long Description : The Union Budget 2026 introduces a structural change in India's fiscal framework. Instead of strictly targeting an annual fiscal deficit percentage, the government will now prioritize the Debt-to-GDP ratio as its operational anchor. The target is to reduce the central government's debt from 56.1% (March 2026) to 50±1% by March 2031. This shift provides the government with greater flexibility to handle economic shocks while ensuring long-term sustainability. For FY27, the fiscal deficit is pegged at 4.3%, which is consistent with this new trajectory of reducing debt by approximately one percentage point annually.

Long Description : To future-proof the financial sector, a new High-Level Committee on Banking has been announced. The committee is tasked with a comprehensive review of the Indian banking landscape, focusing on financial stability, inclusion, and enhanced consumer protection. Despite strong balance sheets and high profitability in current PSU banks, the government aims to align the sector with the requirements of a developed India (Viksit Bharat). Additionally, the budget proposed restructuring major NBFCs like Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) to achieve better scale and credit delivery efficiency for long-term infrastructure projects.

Long Description : The "Orange Economy" refers to sectors driven by creativity, culture, and intellectual property, such as Animation, Visual Effects, Gaming, and Comics (AVGC). Recognizing India’s potential to become a global hub for digital content, the government announced the setting up of AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges. This initiative, supported by the Indian Institute of Creative Technologies, Mumbai, aims to prepare 2 million professionals for the industry by 2030. The budget also proposed a new National Institute of Design (NID) in Eastern India to bolster design-led manufacturing and innovation.

Long Description : The Biopharma Shakti (Strategy for Healthcare Advancement through Knowledge, Technology, and Innovation) scheme aims to bolster India's capabilities in high-end biologicals and biosimilars. The mission focuses on tackling non-communicable diseases like cancer, diabetes, and autoimmune disorders through indigenous R&D. Three new National Institutes of Pharmaceutical Education and Research (NIPERs) will be established under this initiative. It also seeks to integrate traditional medicine with modern biopharma, supported by an increased allocation of ₹4,409 crore for the Ministry of AYUSH, promoting a holistic approach to global healthcare challenges.

Long Description : To reduce dependence on imports for high-tech manufacturing, the government announced the creation of Rare Earth Corridors in mineral-rich coastal states. These corridors will integrate the entire value chain—from mining and separation to processing and research. This follows the Rare Earth Permanent Magnets (REPM) scheme, aiming to secure 17 critical elements essential for EV magnets, smartphones, and defense equipment. With a budgetary outlay of ₹7,280 crore over seven years, the initiative aims to build resilient domestic supply chains and enhance India's strategic autonomy in the face of shifting global geopolitics.

Long Description : Aimed at boosting employment in the labor-intensive textile sector, the new programme includes the National Fibre Scheme for self-reliance in natural and man-made fibres. A 'Textile Expansion and Employment Scheme' will provide capital for modernizing traditional clusters with advanced machinery. The 'Tex-Eco Initiative' will promote sustainable and globally competitive apparel manufacturing. Furthermore, 'Samarth 2.0' was launched to upgrade the skilling ecosystem through industry-academic partnerships. To further scale production, the government will set up Mega Textile Parks in "challenge mode," emphasizing value addition in technical textiles.

Long Description : The government has significantly increased the sports budget to transform the national ecosystem. The new "Khelo India Mission" is a decade-long plan focused on upgrading infrastructure, identifying grassroots talent, and embedding a sporting culture in remote and tribal districts. A specific allocation of ₹500 crore was made for the "Promotion of Sports Goods Manufacturing" to boost the domestic industry. The mission also emphasizes sports science and the creation of more professional leagues across various disciplines. This move is seen as part of India's long-term strategy to contribute to the global Olympic movement.

Long Description : Education received its highest-ever funding in this budget, with a focus on bridge learning and infrastructure. A key highlight is the plan to build "Girls' Hostels" in every district to promote higher education among women. The budget also integrates industry demands through a new "Education-to-Employment Standing Committee," which will align curriculum with emerging technologies like AI. For schools, the government is focusing on digital readiness and vocational training through AVGC labs. The allocation aims to improve the Gross Enrolment Ratio (GER) and modernize campuses for future-ready learning.

Long Description : In a move to curb excessive speculation in the derivatives market, the Finance Minister announced a significant hike in the Securities Transaction Tax (STT). Futures trading will now attract a tax of 0.05%, while options transactions see a steep rise to 0.15%. This policy is aimed at protecting retail investors who often face heavy losses in the F&O (Futures and Options) segment. While the stock markets reacted with volatility, especially PSU bank stocks which fell up to 9%, the government maintained that this is necessary for market stability and to encourage long-term equity investment.

Long Description : To establish India as a global data hub, the budget offers a long-term tax holiday for international cloud service providers. Companies that set up data centres in India and provide services globally will be exempt from certain taxes until 2047, provided they use Indian resellers for domestic services. This move is designed to attract massive FDI in digital infrastructure and ensure data sovereignty. Additionally, "Safe Harbour" provisions for IT/ITeS companies have been enhanced, with the threshold raised to ₹2,000 crore, ensuring tax certainty and reducing litigation for India's software giants.

Long Description : In a significant political development, Sunetra Pawar was sworn in as the Deputy Chief Minister of Maharashtra at Lok Bhavan, Mumbai. She becomes the first woman to hold this prestigious post in the state's history. The appointment followed the sudden death of her husband, veteran leader Ajit Pawar, in an air crash. Sunetra Pawar will handle three key portfolios: Excise, Minority Affairs, and Sports and Youth Welfare. While the move was hurried following a state mourning period, it marks a major shift in the state’s political landscape ahead of upcoming assembly elections.

Long Description : The Indian men's cricket team concluded their home series against New Zealand with a convincing win in the final match at the Greenfield International Stadium. Defending a competitive total, the Indian bowlers restricted the Black Caps to secure a 46-run victory. This win finalized the series scoreline at 4-1 in favor of India. The series was characterized by strong performances from young talents, providing a solid buildup for the upcoming ICC tournaments. The victory also solidified India's top ranking in the shortest format of the game.

Long Description : Devika Sihag achieved a career milestone by winning her maiden BWF Super 300 crown at the Thailand Masters in Bangkok. Facing Malaysia's top seed Goh Jin Wei in the women's singles final, Sihag was leading when her opponent was forced to retire due to injury. Throughout the tournament, the young Indian displayed exceptional form, including a grueling semi-final victory over Chinese Taipei's Huang Yu Hsun. This victory makes her one of the youngest Indians to win a Super 300 title, signaling a bright future for Indian badminton on the international stage.

Long Description : India hosted representatives from the Arab League for the second India-Arab Foreign Ministers meeting in New Delhi. EAM S. Jaishankar emphasized that ending the Gaza conflict is a "shared priority" for the global community. The discussions covered a wide range of issues, including maritime security in the Red Sea and peace processes in Sudan, Libya, and Lebanon. The meeting served as a crucial diplomatic precursor to PM Narendra Modi’s expected visit to Israel later in the month. India reiterated its support for a two-state solution and increased humanitarian aid to conflict-affected regions.