Highlights
- Education: the Supreme Court mandated Computer-Based Testing for NEET and issued guidelines for same-day or next-day bail orders.
- Economy: RBI data showed a sixfold increase in Balance of Payments deficit and a three-year high in the Current Account Deficit.
- Trade: an interim India-US trade agreement was announced against the backdrop of the iCET strategic technology framework.
- Health: NFHS-6 data showed rising Caesarean section rates, improving immunisation, and significant declines in spousal violence.
- Environment: India's solar generation lost 9.6 per cent of output to air pollution in 2023, well above the global average of 5.8 per cent.
1. NEET CBT mandate and judicial efficiency guidelines
GS area: Polity (judiciary, right to education)
The Supreme Court ordered that the National Eligibility-cum-Entrance Test for undergraduate medical admission must shift to Computer-Based Testing mode. The same bench issued procedural guidelines for bail and reserved judgments.
- CBT mandate: the Court found that paper-based examinations are inherently more susceptible to question paper leaks. CBT eliminates physical distribution of question papers and allows different question sets for different candidates at the same centre.
- CBI probe: the Central Bureau of Investigation was directed to continue its probe into the NEET paper leak chain. As of the order, over 45 accused had been charge-sheeted across multiple states.
- 23 lakh candidates: the scale of disruption is relevant for both the rights question (Article 21A education access) and the governance question (NTA's ability to administer India's largest entrance examination system with integrity).
- Same-day bail guideline: the Court directed all High Courts to pronounce bail orders on the day of hearing or the following day in exceptional circumstances. Delayed bail orders themselves become a liberty violation.
- Reserved judgments: the Court issued a 3-month outer limit for High Courts to pronounce judgments reserved after hearing. Reasons must be uploaded within one week of pronouncement. These measures address delays at the HC level that feed Supreme Court pendency through appeals.
Static linkage: NEET, right to education, Article 21, judicial efficiency, CBI.
2. Balance of Payments crisis: RBI Annual Report
GS area: Economy (external sector, RBI, balance of payments)
The RBI's Annual Report 2025-26 showed a sharp deterioration in India's external account, with the Overall Balance of Payments recording a deficit of USD 30.8 billion, a sixfold increase from the previous year.
- BoP structure: the Balance of Payments has three main accounts. The Current Account records trade in goods and services and transfer payments. The Capital Account (small in India's system) records capital transfers. The Financial Account records foreign investment (FDI, FPI, loans).
- Current Account Deficit: USD 30.2 billion, a three-year high. The CAD is the difference between the value of goods and services India imports and the value it exports, plus net transfer income (primarily remittances).
- Capital and Financial Account: the net inflow through FDI, FPI, and loans collapsed to a surplus of only USD 72 million, against a CAD of USD 30.2 billion. The mismatch explains the overall BoP deficit.
- FPI outflows: net Foreign Portfolio Investor outflows of USD 4.3 billion over the year reflected risk-off sentiment driven by Hormuz-related uncertainty and US interest rate dynamics.
- Gold and silver imports: the duty on gold and silver imports was raised to 15 per cent to dampen import demand and narrow the CAD. India is consistently one of the world's largest gold importers.
- Reserve adequacy: despite the BoP deficit, forex reserves remained around USD 620 billion, covering approximately 11 months of imports, providing a substantial buffer.
Static linkage: BoP, CAD, forex reserves, FPI, RBI, capital account, gold imports.
3. India-US interim trade agreement and iCET
GS area: International Relations (India-US, trade, technology)
India and the United States announced the terms of an interim trade agreement, building on the iCET (Initiative on Critical and Emerging Technology) framework established in 2023.
- Bilateral trade trajectory: bilateral merchandise and services trade grew from approximately USD 20 billion to approximately USD 220 billion over two decades, reflecting one of the world's fastest bilateral trade expansions.
- Interim nature: the agreement covers specific tariff concessions in strategic goods, reduces or eliminates restrictions on tech-transfer in covered sectors, and establishes an Investment Incentive Mechanism for supply chain co-investment. A comprehensive FTA remains under negotiation.
- iCET backdrop: launched at the June 2023 Biden-Modi summit, iCET covers semiconductors, AI, quantum computing, biotechnology, space, and advanced telecommunications. It creates "trusted ecosystems" within which technology sharing occurs outside normal export control constraints.
- "Trusted ecosystems" framing: under US export control law (EAR, ITAR), technology transfer to foreign countries requires licences in most cases. "Trusted ecosystem" designation means Indian entities pre-approved within iCET structures receive more streamlined access.
- Strategic significance: the agreement reduces India's dependence on technology from single sources (particularly China-adjacent supply chains) and gives US firms preferential access to India's large consumer and industrial markets.
Static linkage: India-US relations, iCET, trade agreements, semiconductor supply chains.
4. China's green dominance: EVs, batteries, rare earths
GS area: Economy (energy transition, international trade, strategic competition)
China's dominance in the green energy supply chain is relevant to multiple current-affairs threads and is a standard Prelims static-plus-dynamic question.
- Electric vehicle market share: China accounts for approximately 60 per cent of global EV sales, driven by domestic policy support, a mature charging infrastructure, and competitive pricing from local manufacturers.
- Battery manufacturing: China controls approximately 76 per cent of global lithium-ion battery manufacturing capacity. This includes cells, modules, and packs for both EVs and stationary storage.
- Rare-earth processing: China processes approximately 90 per cent of the world's rare-earth elements, far exceeding its share of reserves. The processing stage is where the strategic chokehold lies, not just in mining.
- India's green targets: India has committed to 500 GW of non-fossil fuel electricity capacity by 2030 and net-zero by 2070. Achieving 500 GW requires large volumes of Chinese-processed rare earths for wind turbines and solar panels, creating a strategic dependency even in India's clean energy expansion.
- Policy response: India's Domestic Content Requirement for solar panels, the Production Linked Incentive for Advanced Chemistry Cell batteries, and the Critical Minerals Mission are all attempts to diversify away from Chinese supply chains.
Static linkage: energy transition, critical minerals, India's climate targets, China competition.
5. NFHS-6 women's empowerment and institutional delivery indicators
GS area: Society (health, gender, NFHS)
The National Family Health Survey Round 6 (2023-24) published detailed state and national tables. Several indicators are UPSC examination staples.
- Institutional deliveries: 90.6 per cent of births now occur in health facilities, up significantly from NFHS-5. This is the combined effect of Janani Suraksha Yojana, JSY-MCTS tracking, and Ayushman Arogya Mandirs.
- Full immunisation (12 to 23 months): 87.1 per cent, up from 76.4 per cent in NFHS-5. Full immunisation covers BCG, DPT3, OPV3, and measles/MR vaccines.
- Stunting: 29.3 per cent, down from 35.5 per cent in NFHS-5. Stunting (low height for age) reflects chronic undernutrition in early childhood. WHO threshold for public health emergency is 40 per cent, but any figure above 20 per cent is considered high.
- Caesarean sections: 27.2 per cent of deliveries were by C-section nationally. Private hospitals reported approximately 54.1 per cent and public hospitals 16.9 per cent. WHO recommends 10 to 15 per cent as the medically justified rate. Telangana's C-section rate was 62.2 per cent.
- Spousal violence: declined from 29.2 per cent in NFHS-5 to 22.3 per cent, a significant reduction but still affecting over one in five women.
- Internet use (women): nearly doubled from 33.2 per cent to 64.3 per cent, a major shift in information access. House and land ownership rose from 14 to 18.8 per cent.
- Child marriage (women 20 to 24): 20.1 per cent were married before 18, indicating one in five women in the 20 to 24 cohort was married as a minor. Rural figure is higher.
Static linkage: NFHS, nutrition indicators, gender equity, institutional delivery, child marriage.
6. India's solar generation and air pollution losses
GS area: Environment (solar energy, air quality, climate)
A 2023 study, entered into policy discussion in May 2026, estimated that India lost 9.6 per cent of its total solar generation to air pollution, approximately 15 TWh of lost output. This is nearly double the global average of 5.8 per cent.
- Mechanism: particulate matter and aerosols in the atmosphere scatter and absorb incoming solar radiation before it reaches photovoltaic panels. Panel surfaces also accumulate dust and particulate, reducing efficiency (soiling effect).
- India's high losses: India's solar installations are concentrated in the Indo-Gangetic Plain and Rajasthan, where particulate matter concentrations are among the highest in the world. The combination of atmospheric scattering and soiling produces the large losses.
- China comparison: China loses approximately 7.7 per cent of solar generation to pollution but this rate is declining at approximately 1.4 per cent per year as its air quality improvement programmes take effect.
- Opportunity cost: at current solar tariffs, 15 TWh of lost generation represents a significant economic cost and reduces the effective capacity factor of India's solar fleet.
- Policy implication: air quality improvement and solar energy targets are co-benefits: cleaner air increases effective solar output without any capital investment in panels or capacity.
- India's 500 GW target: the 2030 target requires solar to be the largest contributor. Pollution losses mean actual delivered output will be below nameplate capacity, requiring additional capacity to meet electricity generation targets.
Static linkage: solar energy, air pollution, PM2.5, energy targets, co-benefits.
7. LPG energy security and Strategic Petroleum Reserve
GS area: Economy (energy security)
A domestic LPG supply gap brought the Strategic Petroleum Reserve and liquid fuels security back into focus.
- LPG demand vs supply: daily LPG demand is approximately 72,000 metric tonnes. Domestic production is approximately 50,000 to 52,000 metric tonnes per day. The gap of roughly 20,000 MT is met by imports, primarily from the Middle East.
- Minimum reserve mandate: the government mandated a minimum 30-day LPG reserve at marketing locations to insulate supply chains from short-term import disruption.
- Strategic Petroleum Reserve: India's Strategic Petroleum Reserve for crude oil is maintained by the Indian Strategic Petroleum Reserves Limited at three underground rock cavern facilities: Visakhapatnam (Andhra Pradesh), Mangaluru (Karnataka), and Padur (Karnataka). Combined capacity: approximately 5.33 million metric tonnes of crude.
- ISPRL: Indian Strategic Petroleum Reserves Limited is a special purpose vehicle under the Ministry of Petroleum and Natural Gas. It fills and manages the caverns.
- LPG gap significance: Pradhan Mantri Ujjwala Yojana enrolled over 10 crore households, dramatically increasing LPG demand from the bottom of the economic pyramid. Ensuring supply continuity for this demand is a food security and gender issue (women bear the burden of solid-fuel cooking).
Static linkage: energy security, SPR, LPG, Ujjwala, ISPRL.
Briefly noted
- Quad FMM and Fiji port: the announcement of the first Quad port project in Fiji signals a shift in Quad's operational scope from maritime surveillance and defence to development infrastructure. This is significant in the context of China's infrastructure diplomacy in the Pacific through the Pacific Islands Forum and bilateral loans.
- Urban Heat Island (UHI): cities are 2 to 10 degrees Celsius hotter than surrounding rural areas. The UHI effect contributes approximately 38 per cent of urban warming with climate change contributing approximately 60 per cent. Ahmedabad launched India's first Heat Action Plan in 2013, now used as a model by WHO and other cities.
Practice MCQs