18 January 2026

• International: India at Davos World Economic Forum 2026; PM Narendra Modi addressed world leaders. India positioned as the fastest-growing major economy.
• Economy: World Economic Forum: India committed 500 billion USD in investment pledges from domestic and foreign companies.
• Governance: India's position on Trump's "Board of Peace" for Gaza kept in deliberate ambiguity at Davos.
• Science: ISRO's PSLV-C62 failure analysis underway; failure review panel constituted.
• Environment: Draft National Electricity Policy 2026 public consultation phase.

GS area: International Relations, Economy

The World Economic Forum (WEF) Annual Meeting took place in Davos, Switzerland in January 2026.

• India's position: Presented as the world's fastest-growing major economy at 7.4 to 8.2% GDP growth.
• Investment pledges: Reports indicate 500 billion USD in investment pledges to India from domestic and foreign companies over the WEF meetings.
• Board of Peace: India maintained "wait and watch" posture. The Board of Peace (Trump's proposed intergovernmental Gaza reconstruction body) required a 1 billion USD contribution as reported membership cost. India's concerns include its commitment to multilateralism (UN primacy), the presence of Pakistan as a co-member and the Palestine-Israel balance.
• WEF background: Founded 1971 by Klaus Schwab. Annual meeting in Davos brings together heads of state, CEOs, civil society leaders and academics. India has been a consistent participant since the early 1990s.

Static linkage: WEF, foreign investment, India's foreign policy.

GS area: Economy, Governance

The Ministry of Power's Draft National Electricity Policy (NEP) 2026 is in public consultation, replacing NEP 2005.

• Per capita target: 2,000 kWh by 2030; 4,000-plus kWh by 2047. Current level (2024-25): 1,460 kWh.
• Emissions commitment: 45% reduction in emissions intensity from 2005 levels by 2030; net-zero by 2070.
• Sector milestones since 2005: Installed generation capacity increased fourfold. Universal electrification achieved by March 2021. Unified national grid operational since 2013.
• Key reforms proposed:
  • Resource Adequacy Planning: DISCOMs and SLDCs to prepare utility-level plans; CEA to coordinate nationally.
  • Automatic tariff revision linked to inflation index.
  • Cross-subsidy removal for manufacturing and railways by 2027.
  • BESS promotion; domestic cell manufacturing support.
  • Renewable scheduling parity with conventional power by 2030.
• Nuclear energy: Advanced technologies under the SHANTI Act 2025 (covering advanced reactors and small modular reactors). Target: 100 GW nuclear capacity by 2047.
• SCADA domestication: Supervisory Control and Data Acquisition systems (which control power grids) to transition to domestic software by 2030.

Static linkage: Energy policy, electricity regulation, CERC.

GS area: Economy

Reserve Bank and government data tracking household financial health reveals a nuanced picture.

• Household debt: 41.3% of GDP as of March 2025. Up from approximately 36% in mid-2021.
• Comparison: China (60.1%), Malaysia (69.6%), Thailand (88%). India is relatively lower but trajectory is concerning.
• Gross financial assets: 106.6% of GDP. Net financial position: positive. But liabilities are growing faster than assets.
• Net financial savings: Volatile. Fell to 3 to 4% of GDP before recovering to 7.6% in Q4 FY2025-26.
• Risk: Private consumption is approximately 60% of GDP. If debt servicing squeezes consumption, growth moderates sharply.
• Converging risks: Uneven income growth, rapid unsecured retail credit expansion and compressed net savings create a fragile household balance sheet environment.

Static linkage: Household savings, financial stability.

GS area: International Relations

The US-led Board of Peace for Gaza reconstruction remained a live diplomatic question at Davos.

• Structure: Chaired by Donald Trump. Members include Jared Kushner, Tony Blair, Marco Rubio.
• Accepting members: Argentina, Saudi Arabia, Israel, UAE, Egypt, Turkey, Qatar, Pakistan, Indonesia, Vietnam.
• Notable absentees: France, Germany, UK, Italy; Russia and China.
• India's dilemmas:
  • Commitment to UN primacy in conflict resolution.
  • Supporting the two-state solution for Palestine-Israel.
  • Pakistan's membership creates political sensitivity domestically.
  • The 1 billion USD reported membership contribution.
  • Risk of strategic isolation if left out of a body that shapes post-war Gaza.

Static linkage: India's foreign policy, Palestinian state, UN Charter.

GS area: Environment, Governance

The Commission for Air Quality Management released a meta-analysis of PM2.5 sources in Delhi during winter.

• Source contributions to winter PM2.5:
  • Secondary particulate matter (formed in atmosphere from precursor gases): 27% (largest single source).
  • Transport emissions: 23%.
  • Biomass burning (crop residue, municipal waste, wood burning): 20%.
  • Dust (road and construction): 15%.
  • Industrial emissions: 9%.
• Secondary particulate formation: SO2, NOx and NH3 react in the atmosphere to form sulphates and nitrates. These fine particles account for 25 to 60% of PM2.5 in severe winter episodes.
• Ammonia source: About 80% of India's ammonia emissions come from agriculture (synthetic fertilisers and livestock excreta). This is the rural-urban pollution link.

Static linkage: Air quality, CAQM, Delhi pollution.

GS area: Economy, International Relations

The 16th India-EU Summit, scheduled for Republic Day (26 January), was expected to coincide with the FTA signing announcement.

• Combined economic weight: EU and India together represent 25% of global GDP and one-third of world trade.
• Headline numbers: 99% of Indian exports to the EU to receive zero duty treatment. 92 to 97% of EU goods to receive phased tariff elimination.
• Labour-intensive exports: 33 billion USD in zero-duty Indian exports covering textiles, apparel, leather and gems.
• Auto tariffs: India to reduce luxury car import duty from 110% to 10% under a quota-based system.
• Services access: India to get access in 144 EU sub-sectors, including important IT and professional services.
• Exclusions: Agriculture (dairy, cereals, poultry) not covered.

Static linkage: India-EU relations, FTA policy.

GS area: Environment, Governance

The Commission for Air Quality Management in the National Capital Region deserves a full institutional profile.

• Established: Under the CAQM Act 2021.
• Jurisdiction: NCR and adjoining areas (parts of Haryana, UP, Rajasthan and Punjab that contribute to Delhi's pollution).
• Powers: Override authority over state pollution control boards in the NCR on air quality matters. Can issue binding directions to industries, construction sites and farms.
• Predecessor: Replaced the Environment Pollution (Prevention and Control) Authority (EPCA).
• Limitation: Does not have jurisdiction beyond NCR. National air quality issues (Mumbai, Chennai, Bengaluru) remain with SPCB under CPCB oversight.

Static linkage: Environmental institutions, Delhi pollution.

GS area: Science and Technology

China's EAST (Experimental Advanced Superconducting Tokamak) reactor achieved 1.3 to 1.65 times the Greenwald Limit while maintaining plasma stability.

• Greenwald Limit: The theoretical ceiling for plasma density in a tokamak beyond which the plasma becomes inherently unstable and disrupts.
• Significance: Exceeding the Greenwald Limit while maintaining stability is a fusion engineering milestone. Previous reactors stayed below it.
• How EAST achieved it: Divertor cooling (removing heat from the plasma boundary layer) and controlled tungsten impurity levels reduced instability at high density.
• Fusion relevance for prelims: The ITER reactor in France (India is a member), China's EAST, UK's JET and private ventures (Helion, Commonwealth Fusion Systems) all use tokamak design. India participates in ITER.

Static linkage: Nuclear fusion, ITER, science and technology.

GS area: Environment, Geography

Kumbhalgarh Wildlife Sanctuary in Rajasthan was designated an Eco-Sensitive Zone in January 2026.

• Location: Rajsamand, Udaipur and Pali districts, Rajasthan.
• Area: Approximately 610.5 sq km of core and buffer zones.
• Elevation: 500 to 1,300 metres.
• Aravalli connection: Part of the Aravalli hill system, one of the world's oldest mountain ranges.
• Flora: Khathiar-Gir dry deciduous forest ecoregion.
• Fauna: Leopard, Indian wolf, sloth bear, striped hyena, sambhar, chinkara and Indian pangolin.
• ESZ purpose: Creates a regulated buffer around the sanctuary. Development activities (quarrying, large construction) require prior permission.
• Kumbhalgarh Fort: Adjacent to the sanctuary; a UNESCO World Heritage Site (Hill Forts of Rajasthan, 2013 inscription).

Static linkage: Protected area network, Aravalli biodiversity.

• Davos investment figure: The 500 billion USD in investment pledges to India at WEF Davos 2026 covered manufacturing, infrastructure, renewable energy and technology sectors.
• Board of Peace membership requirement: Reported to require a 1 billion USD contribution per joining member to a Gaza reconstruction fund. India has not committed.