Daily current affairs: 2 February 2026

Long Description : In a major policy shift following the Union Budget 2026-27, the government announced that the debt-to-GDP ratio will now serve as the primary fiscal anchor. This move aligns India with global best practices, focusing on the total burden of public debt rather than just annual deficits. The government projects the fiscal deficit for FY27 at 4.3%, slightly lower than the previous year's 4.4%. By targeting a 50% debt-to-GDP ratio by 2030-31, the Centre seeks to reduce interest payment burdens and create more room for private investment, while closely monitoring state-level borrowings through the 16th Finance Commission framework.

Long Description : On February 2, 2026, the World Bank announced a significant financing package to modernize India's Industrial Training Institutes (ITIs). The PM-SETU program, co-prepared with the Asian Development Bank, aims to address the skills mismatch affecting 72% of India's unemployed youth. The initiative will mobilize $680 million in private capital to upgrade facilities, train instructors, and align curriculum with industry needs. The program expects to produce over a million highly skilled workers annually, specifically targeting improved job placement rates and encouraging female participation in traditionally male-dominated trades like welding and mechanics.

Long Description : During post-budget briefings on February 2, officials detailed the transition to the Income Tax Act 2025. This historic overhaul aims to simplify the language of tax laws, reduce litigation, and eliminate redundant exemptions. While income tax slabs remained unchanged in the 2026-27 Budget, the new Act introduces a "Safe Harbour" threshold for IT services, increased from ₹300 crore to ₹2,000 crore. Additionally, a new time-bound "Foreign Assets Disclosure Scheme 2026" was introduced to allow taxpayers to report overseas assets, marking a decisive shift toward a more transparent and digitized tax regime.

Long Description : Announced as a flagship initiative in the 2026-27 Budget, the Biopharma Shakti mission aims to catalyze India's role in the next industrial revolution. Minister Dr. Jitendra Singh highlighted that the scheme focuses on creating high-tech biomanufacturing hubs and accelerating the development of domestic biologics and biosimilars. The initiative also links with health sector goals, such as improving the affordability of cancer treatments. By fostering research and development in frontier biotechnology, the government intends to reduce import dependency and position India as a leading exporter of complex pharmaceutical products by 2030.

Long Description : Bharat-VISTAAR (Virtual Interactive Smart Tool for Agricultural Advisory and Resources) is an AI-driven platform intended to revolutionize farmer decision-making. By leveraging real-time data on weather, soil health, and market prices, the tool provides tailored advice in multiple Indian languages. The project aims to reduce agricultural risks and enhance productivity by bridging the information gap between scientific research and field implementation. This initiative is part of a broader push to deploy AI in the primary sector, ensuring that even smallholder farmers can access advanced technological insights to improve their livelihoods and crop yields.

Long Description : In a milestone for the Ministry of Skill Development and Entrepreneurship, CCSU Meerut has integrated advanced Google Cloud AI systems into its teaching and administrative frameworks. This pilot project serves as a blueprint for "AI-enabled skilling," focusing on personalized learning paths for students and automated administrative efficiency. The initiative is designed to prepare graduates for the "AI-first" economy by embedding emerging technologies into the core curriculum. Success in this pilot is expected to lead to a nationwide rollout of similar AI-integrated educational infrastructures under the government's digital transformation roadmap.

Long Description : On February 2, 2026, coinciding with the 649th birth anniversary of Sant Guru Ravidas, the Union Government approved the renaming of the Adampur Airport. The decision pays tribute to the saint’s immense contribution to social equality and spiritual reform in India. The renaming ceremony highlights the cultural significance of the airport, which serves as a key gateway in the Doaba region of Punjab. This move is seen as part of the government’s efforts to recognize the legacies of historical spiritual leaders while enhancing regional identity through infrastructure branding.

Long Description : President Droupadi Murmu is scheduled to visit Odisha and Chhattisgarh from February 2 to February 7, 2026. Key highlights of the visit include addressing the convocation of Fakir Mohan University and interacting with tribal youth at Simlipal. On February 7, she will inaugurate the 'Bastar Pandum 2026' festival in Chhattisgarh, a major cultural event for the region. The visit emphasizes the government's focus on tribal development and "women-led development," as the President will also lay foundation stones for educational and healthcare infrastructure, including an Ayurveda Medical College in Rairangpur.

Long Description : Finance Minister Nirmala Sitharaman has prioritized infrastructure-led growth by raising the Capex outlay from ₹11.2 lakh crore in the previous year to ₹12.2 lakh crore for FY 2026-27. This 9% increase is intended to create a multiplier effect on the economy, boosting sectors like steel, cement, and logistics. The budget specifically focuses on "City Economic Regions" (CERs) for Tier-II and Tier-III cities and last-mile connectivity projects. By maintaining high public spending, the government aims to sustain India's position as the world's fastest-growing major economy despite global macroeconomic headwinds.

Long Description : On February 2, India joined the global community in celebrating World Wetlands Day. With India now hosting over 80 Ramsar sites, the focus this year shifted toward "Heritage-led Conservation." The Ministry of Environment emphasized the role of local communities and indigenous practices in maintaining wetland ecosystems. In tandem with the Union Budget’s announcement of the "Amrit Sarovar" expansion, the government is focusing on the integrated development of 500 reservoirs to strengthen coastal fisheries and local water security, ensuring that wetlands are protected as vital carbon sinks and biodiversity hotspots.

Long Description : In a top-level military reshuffle, Air Marshal Inderpal Singh Walia took command of the strategically vital Eastern Air Command (EAC) headquartered in Shillong. With the Union Budget 2026-27 increasing defense spending by 15.3% to ₹7.84 lakh crore, the EAC's role in modernizing border infrastructure and maintaining air superiority along the Line of Actual Control (LAC) has become paramount. The new chief will oversee the integration of advanced assets like the S-400 systems and Tejas Mk1A squadrons in the eastern sector, focusing on the "Jointness in Border Security" doctrine emphasized in recent policy papers.

Long Description : As part of the Union Budget 2026-27 highlights, the Finance Ministry introduced a dedicated Seaplane VGF Scheme. This initiative is designed to encourage domestic aircraft manufacturing and improve access to India's vast coastline and interior water bodies. By subsidizing the operational costs for airlines, the government hopes to boost "Medical Value Tourism" and general tourism in regions like the Lakshadweep and Andaman islands. This project aligns with the larger Sagarmala and UDAN (Ude Desh ka Aam Nagrik) frameworks, seeking to make niche aviation sectors commercially viable for private players.

Long Description : Announced on February 1 and detailed on February 2, the CCUS allocation marks India's aggressive move toward "Net Zero" targets. The funds will support pilot projects in heavy industries like steel, cement, and chemicals to trap CO2 emissions before they reach the atmosphere. Science and Technology Minister Dr. Jitendra Singh noted that this is a critical step toward a "circular economy." The initiative will also involve the creation of "Dedicated Rare Earth Corridors" in Odisha and Andhra Pradesh to ensure the supply of materials needed for green technologies, further securing India’s green energy supply chain.

Long Description : Samarth 2.0 is a refined version of the previous skilling scheme, now part of a broader five-part textile strategy. The programme includes the National Fibre Scheme and the Tex-Eco Initiative, focusing on sustainable manufacturing. By integrating legacy industrial clusters with updated technology, the government aims to create "Champion SMEs" in the textile space. The scheme provides liquidity support and technological upgrades to 200 industrial clusters, ensuring that India remains competitive in the global apparel market while supporting millions of weavers through the Mahatma Gandhi Gram Swaraj initiative.

Long Description : In a significant legal development on February 2, the Supreme Court mandated the formation of a water dispute tribunal under the Inter-State River Water Disputes Act, 1956. The dispute centers on Karnataka’s construction of check dams and diversion projects on the Pennaiyar river, which Tamil Nadu claims will affect the water flow to its northern districts. The Court's intervention aims to provide a time-bound judicial mechanism for resolving the conflict after bilateral negotiations failed. This case highlights the ongoing challenges of federalism and resource management in peninsular India.

Long Description : The Finance Ministry has announced the formation of a "High Level Committee on Banking for Viksit Bharat" to recommend structural reforms in the financial sector. The committee will focus on improving credit flow to MSMEs, enhancing the digital banking infrastructure, and ensuring the stability of the banking system against global shocks. Additionally, the committee will evaluate the "Market Making Framework" for corporate bonds and the expansion of municipal bonds to strengthen urban finances. This move signifies a proactive approach to evolving banking regulations to support India’s next phase of high-growth economic development.