Daily current affairs: 29 January 2026

Long Description : The Economic Survey 2025-26, authored by Chief Economic Adviser V. Anantha Nageswaran, serves as a precursor to the Union Budget. It projects a real GDP growth of 7.4% for the current fiscal (FY26) and a slightly moderated 6.8–7.2% for FY27. The document notes that India’s potential growth rate has been revised upward to 7%. Key highlights include a multi-decadal low in Gross Non-Performing Assets (GNPA) at 2.2% and a significant expansion in the tax base, with income tax filings reaching 9.2 crore. The survey emphasizes "strategic sobriety" in navigating global "managed disorder" and trade fragmentation.

Long Description : As India prepares for a sustained human presence in Low Earth Orbit (LEO), ISRO is inviting proposals from academia, start-ups, and national labs to develop scientific payloads. The IMEx-2026 initiative focuses on disciplines such as Space Biology, Biotechnology, Materials Science, and Fluid Physics. These experiments aim to utilize the unique microgravity environment to achieve breakthroughs in drug research and in-space manufacturing. This move aligns with the broader vision of the Gaganyaan program and the phased establishment of the Bharatiya Antariksh Station, marking a transition from purely technological milestones to a robust space-based research ecosystem.

Long Description : The services sector continues to be the backbone of the Indian economy, with Gross Value Added (GVA) estimated to grow at 9.1% in FY26. The record-high exports of $387.6 billion reflect India's growing dominance in Global Capability Centres (GCCs) and digital services. The Survey highlights that India has successfully diversified its services beyond IT into professional, management, and consultancy services. This growth is critical for maintaining a stable Current Account Deficit (CAD) and has contributed to the record foreign exchange reserves, which stood at $701.4 billion as of mid-January 2026.

Long Description : In a statement to the Parliament, the Ministry of Science and Technology detailed the evolution of the 2020 draft policy into actionable missions. Key among these is the "Research, Development and Innovation (RDI) Scheme," which has a financial pool of ₹1 lakh crore over six years. The establishment of the ANRF is designed to bridge the gap between academia and industry. Additionally, the National Quantum Mission, with an outlay of ₹6,003.65 crore, and the expansion of national laboratories to 622 institutions were cited as major steps toward making India an "innovation-led" global economy by 2047.

Long Description : Despite domestic inflation averaging a low 1.7% between April and December 2025, the Reserve Bank of India (RBI) is expected to prioritize currency stability and the "last mile" of policy transmission. With the Rupee facing pressure due to foreign investor outflows—approximately $4 billion in early 2026—the central bank has been intervening in currency markets. This intervention has drained some liquidity, prompting the RBI to inject over $23 billion through bond purchases and OMOs. Most economists believe the Monetary Policy Committee (MPC) will hold rates to buffer against global volatility and high US tariffs.

Long Description : The Economic Survey highlighted the robust external sector of India, noting that the forex reserves have surpassed the $700 billion milestone. This massive cushion is viewed as a "shield of resilience" against global financial shocks and volatile capital flows. Despite the Rupee hitting record lows against the US Dollar (near 91.98), the strong reserve position ensures that India can manage its external obligations comfortably. The survey notes that while the weaker Rupee doesn't hurt domestic inflation (which is currently low), it does warrant "careful examination" regarding investor sentiment and equity outflows.

Long Description : This legal development follows a Kerala High Court ruling that allowed the ED to file writ petitions. The governments of Kerala and Tamil Nadu have challenged this, arguing that as an investigating agency, the ED should not be able to invoke these extraordinary jurisdictions which are primarily meant for the protection of fundamental rights or for individuals against the state. The case will examine the constitutional limits of the ED's powers under the PMLA (Prevention of Money Laundering Act) and could have significant implications for federal relations and the agency's operational scope in various states.

Long Description : A joint initiative of the Namami Gange Mission and the Wildlife Institute of India (WII), the JALAJ project follows a "circular economy" model. By training local communities in sustainable practices—such as organic farming, eco-tourism, and traditional handicrafts—the project seeks to reduce dependency on river resources while promoting biodiversity. A total of 75 such centres are planned across the Ganga basin. This initiative is a key component of the "Arth Ganga" concept, which aims to link the cleaning of the river with the economic development of the people living along its banks.

Long Description : With the world witnessing a shift toward protectionism and high tariffs (specifically from the US), India is fast-tracking FTAs with the UK, EU, Oman, and New Zealand. The Survey notes that these agreements are not just about duty-free access but are designed to integrate Indian firms into Global Value Chains (GVCs). This strategy has helped India nearly double its share of global merchandise exports from 1% to 1.8% over the last two decades. The document stresses that state-level implementation and regulatory certainty are now the primary factors determining India's export competitiveness.

Long Description : During a Rajya Sabha session, the Minister detailed the transformation of the Department of Posts. For the first time, the Indian postal system has appointed a Chief Technology Officer (CTO) and a Chief Marketing Officer (CMO) to drive modernization. Under "Project Streamline," the transition from rudimentary electronic systems to a robust, indigenously developed digital framework has been completed. This upgrade facilitates better integration with India's digital public infrastructure, allowing post offices to serve as efficient hubs for government-to-citizen (G2C) services and financial inclusion in rural areas.

Long Description : Aimed at improving the Ease of Doing Business, the new regime replaces the fragmented approval structure with an "Integrated Consent Mechanism." Previously, industries required separate permissions under the Air Act (1981) and Water Act (1974). Under the new rules, businesses can file a single consolidated application covering air, water, and waste authorizations. While the move speeds up industrial setup, the government maintains that environmental safeguards are upheld through third-party audits and compliance-based governance, shifting away from a purely permission-based model that often caused administrative delays and corruption.

Long Description : The DoPT report provides a socio-economic breakdown of the sanitation workforce within the central government. It highlights a continuing trend of representation from marginalized communities in this sector. While the report showcases the government’s efforts in formalizing these roles, it also reignites discussions on the social stratification of labor in India. The government is using this data to push for better social security, health insurance, and mechanization of sanitation work to end the practice of manual scavenging and improve the working conditions of these essential frontline workers.

Long Description : The commercial arm of ISRO has seen a massive surge in revenue, particularly in the last decade. Out of 434 foreign satellites launched by India, 399 were launched after 2014. The Minister emphasized that the space sector is no longer just a scientific endeavor but a major contributor to the national economy. With the opening of the sector to private players and the success of the SSLV (Small Satellite Launch Vehicle), India is positioning itself as a cost-effective global hub for satellite launches, particularly for small-satellite constellations from Western nations.

Long Description : Addressing questions in the Rajya Sabha, the Communications Minister highlighted the progress of the BharathNet scheme, which was significantly amended in 2023-24 to speed up implementation. The project is the world's largest rural broadband initiative. While the majority of the connectivity targets have been met, the Minister acknowledged delays in areas affected by Left-Wing Extremism (LWE) and challenging Himalayan terrains. The project is seen as the backbone for the "Digital India" vision, enabling tele-medicine, e-education, and digital banking in the remotest parts of the country.

Long Description : This significant improvement in asset quality is attributed to the "Twin Balance Sheet" advantage, where both corporates and banks have deleveraged. The Survey credits the Insolvency and Bankruptcy Code (IBC) and proactive provisioning by banks for this turnaround. Furthermore, the Capital to Risk-Weighted Assets Ratio (CRAR) remains high at 16.8%, indicating that Indian banks are well-capitalized and capable of supporting credit demand. This financial health is crucial as the government expects private investment to pick up pace following the recent rationalization of GST and labor law reforms.

Long Description : The Economic Survey 2025-26 highlighted the success of India's financial inclusion drive. Out of the 55.02 crore accounts, 36.63 crore are in rural or semi-urban pockets, ensuring that the Direct Benefit Transfer (DBT) mechanism reaches the intended beneficiaries without leakages. The Survey also pointed out a "democratization of capital markets," with unique investors crossing the 12-crore mark. Interestingly, nearly 25% of these new investors are women, signifying a shift in the domestic savings habit from traditional assets like gold to formal financial instruments.