Highlights
- Economy: India's GDP growth for FY 2025-26 revised upward to 7.6 per cent (from 7.3 per cent estimate); second advance estimate released.
- Security: Pakistan conducts a second round of air strikes on Afghan border areas; Kabul retaliates for the first time.
- Polity: Delhi Chief Minister Arvind Kejriwal discharged from Tihar jail after Supreme Court bail in the liquor policy case.
- Environment: Fortified rice distribution suspended in three tribal districts of Jharkhand after reported adverse reactions.
- Defence: Light Combat Helicopter Prachand achieves Initial Operational Clearance (IOC) for the Indian Army.
1. GDP second advance estimate: 7.6 per cent for FY26
GS area: Economy (National accounts, Macroeconomics)
The Ministry of Statistics and Programme Implementation (MoSPI) released the Second Advance Estimate of GDP for FY 2025-26. GDP growth is revised to 7.6 per cent from the 7.3 per cent First Advance Estimate.
- GDP vs GVA distinction: GDP (Gross Domestic Product) = GVA (Gross Value Added) + taxes on products minus subsidies. GVA at basic prices was 7.2 per cent, GDP at market prices was 7.6 per cent. The difference reflects the net impact of indirect taxes.
- Strong sector: Manufacturing grew 8.2 per cent in FY26, a four-year high, driven by PLI-linked production in electronics, pharmaceuticals and chemicals.
- Weak sector: Agriculture grew at 3.4 per cent. Real wages of agricultural workers have grown only marginally in inflation-adjusted terms.
- Per capita income: India's nominal per capita income crossed ₹2 lakh per annum (approximately $2,400) for the first time in FY26.
- Comparison with China: China's FY25 GDP growth was 5.0 per cent. India's higher growth rate reflects both stronger domestic demand and a lower base, but also a different measurement methodology.
- What 7.6 per cent does not capture: Informal sector contraction, gig worker vulnerability, and the K-shaped recovery where the top income quintile grew faster than others. GDP is a flow measure; wealth inequality is a stock measure.
Static linkage: National Income accounting, GVA vs GDP, CSO/MoSPI, Second Advance Estimate (Economy).
2. Pakistan-Afghanistan: cross-border conflict escalation
GS area: International Relations (South Asia), Security
Pakistan conducted a second round of air strikes inside Afghan territory on 27-28 February. For the first time, the Afghan Taliban retaliated with artillery strikes on Pakistani border posts.
- Pakistan's stated rationale: Targeting TTP (Tehrik-i-Taliban Pakistan) forward operating bases. Pakistan claims the strikes are defensive, responding to TTP attacks that killed 11 Pakistani soldiers in the previous week.
- Afghan retaliation: The Taliban fired artillery at the Chaman border crossing (Balochistan) in response. The Chaman crossing is Pakistan's primary overland trade route to Afghanistan.
- Trade implications: The Chaman crossing closure halts all Pakistan-Afghanistan overland trade. Pakistan's annual trade with Afghanistan is approximately $1.5 billion.
- India's angle: India maintains the Chabahar route as the alternative to Pakistan-controlled land routes for trade with Afghanistan and Central Asia. Pakistan-Afghanistan conflict increases the strategic value of Chabahar.
- Durand Line (1893): Afghanistan has never formally recognised the Durand Line as an international border. This legal ambiguity means Pakistan's strikes are legally contested as either counter-terrorism (Pakistan's view) or sovereignty violation (Afghanistan's view).
- UN involvement: China and Russia called for a UN Security Council emergency session. The US declined, citing Pakistan's right to self-defence.
Static linkage: TTP, Durand Line, Chabahar, India's neighbourhood policy (IR/Security).
3. LCH Prachand: Initial Operational Clearance
GS area: Security (Defence modernisation, Indigenous production)
The Light Combat Helicopter (LCH) Prachand achieved Initial Operational Clearance (IOC) for the Indian Army on 27 February 2026.
- What IOC means: The helicopter is now cleared for limited operational deployment in specific configurations. Final Operational Clearance (FOC), required for full fleet induction, is pending and expected by end-2026.
- Developed by: Hindustan Aeronautics Limited (HAL). The LCH programme began in the 2000s as a response to the Kargil War (1999), where the Army needed a high-altitude combat helicopter.
- High-altitude capability: Prachand can operate at altitudes up to 6,500 metres (above sea level). This makes it suitable for Siachen and Ladakh deployments. No other operational combat helicopter in the world can fire weapons at this altitude.
- Weapons fit: 20mm chin-mounted gun, 70mm rocket pods, Mistral air-to-air missiles (for self-defence), Helina anti-tank guided missiles.
- Air Force vs Army versions: The Indian Air Force received its first LCH squadron in 2023. The Army version (under IOC now) has different mission configurations for ground support and anti-armour operations.
- Import substitution: Previously, India relied on the Mi-35 (Russian) and upgraded Mi-17 V5 for combat helicopter roles. LCH reduces this import dependence.
Static linkage: HAL, Make in India (defence), Helina, atmanirbhar bharat (Security/Economy).
4. Forest Rights Act: restructuring proposals
GS area: Governance (Tribal rights), Social Justice, Environment
A government-appointed review committee has proposed amendments to the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006.
- Current status of FRA: As of 2025, approximately 21 lakh titles have been issued under FRA - against an estimated potential of 42 lakh claims. More than 20 lakh claims have been rejected without adequate reasoning.
- Proposed changes (controversial):
- Reducing Gram Sabha's exclusive authority to approve individual claims.
- Allowing District Collectors to directly approve or reject claims without mandatory Gram Sabha endorsement.
- Expanding "critical wildlife habitats" where FRA rights can be extinguished.
- Tribal community response: The National Campaign Committee for Forest Rights has called for a halt to the proposed amendments. They argue the amendments violate the PESA Act (Panchayats (Extension to Scheduled Areas) Act, 1996) which makes Gram Sabha the foundational democratic unit in tribal areas.
- Constitutional basis: Fifth Schedule areas (for most tribal states) and Sixth Schedule areas (for Assam, Meghalaya, Tripura, Mizoram) have different governance arrangements. FRA applies to Fifth Schedule areas primarily.
- Niyamgiri case (2013): The Supreme Court ruled that the Gram Sabha of Dongria Kondh tribe could veto mining in their sacred hills. This precedent supports Gram Sabha authority under FRA. The proposed amendments would erode this precedent.
Static linkage: FRA 2006, PESA, Fifth Schedule, Gram Sabha, tribal rights (Governance/Social Justice).
5. Norges Bank excludes Adani Green Energy
GS area: Economy (ESG, Ethics), International Relations
Norway's Government Pension Fund Global (GPFG), the world's largest sovereign wealth fund managing approximately $1.8 trillion, excluded Adani Green Energy from its portfolio.
- Reason for exclusion: The fund's Council on Ethics found "unacceptable risk" of contributing to serious violations of human rights and labour rights during construction of Adani Green's large-scale solar projects, based on third-party audit reports.
- GPFG's ESG process: The Council on Ethics makes recommendations; the Norges Bank Investment Management board decides. The exclusion list includes approximately 170 companies globally.
- Impact on Adani Green: GPFG held approximately 0.5 per cent of Adani Green's equity. The exclusion is primarily reputational and signals concern to other ESG-focused institutional investors.
- Broader ESG context: India's ESG-linked foreign investment is growing. SEBI mandates Business Responsibility and Sustainability Reporting (BRSR) for the top 1,000 listed companies. BRSR-Core (mandatory from 2024-25) requires third-party assurance on nine key performance indicators.
- India's response: Ministry of Commerce and Industry declined to comment on a foreign fund's investment decisions. No regulatory action by SEBI.
Static linkage: ESG, SEBI, BRSR, sovereign wealth funds, foreign investment (Economy).
6. Briefly noted
- India-Bhutan rivers: India and Bhutan signed the Joint Rivers Commission (JRC) framework agreement for 54 shared rivers. The agreement establishes a permanent technical committee for flood warning, embankment maintenance and hydropower data sharing. The Manas and Torsa rivers are the most critical for India's Assam and West Bengal flood management.
- India-Canada reset: Canadian PM Mark Carney expressed willingness to reset India-Canada relations after Prime Minister Trudeau's resignation. The bilateral relationship collapsed after the Hardeep Singh Nijjar assassination (June 2023) and mutual diplomat expulsions in October 2023. Trade is approximately $10 billion annually.
- Power grid oscillations: POSOCO (Power System Operation Corporation of India) detected inter-area oscillations in the Western Regional Grid (Maharashtra-Gujarat interconnect) on 27 February at 23:17 IST. No blackout occurred. Oscillations were dampened by automatic generation control (AGC) within 90 seconds. The incident underscores the need for wide-area monitoring systems in India's integrated national grid.
- Fortified rice suspension: The Ministry of Health suspended fortified rice distribution in 3 tribal districts of Jharkhand (Simdega, Gumla, Lohardaga) after community health workers reported rashes and nausea. ICMR investigation underway. The National Food Security Act covers 81 crore beneficiaries; 14 crore of them receive fortified rice under a pilot.
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