Highlights
- Economy: RBI kept the repo rate unchanged at 5.25 per cent with a neutral stance. GDP growth for FY 2025-26 came in at 7.7 per cent (Q4 at 7.8 per cent).
- Health: a PreVenTB trial of 12,700 participants showed the VPM1002 vaccine is around 50 per cent effective against extrapulmonary TB.
- West Asia: Iran struck a Kuwait airport and a Bahrain military base after US strikes on Qeshm. India's 9 million-strong diaspora and crude import dependence are in the frame.
- India-Russia: Putin offered joint Su-57 fighter development. The partnership is under Western pressure.
1. RBI MPC: repo rate held at 5.25 per cent
GS area: Economy
The Monetary Policy Committee kept the repo rate at 5.25 per cent and maintained a neutral stance. The decision was unanimous among the six members. The governor cited the West Asia conflict as raising uncertainty about oil prices.
- Monetary Policy Committee: the six-member body that sets the repo rate. It has three RBI officials and three external members appointed by the government. Decisions require a majority; the governor has a casting vote.
- Repo rate at 5.25 per cent: the rate at which the RBI lends overnight to commercial banks against government securities. A cut reduces the cost of credit in the economy. The committee chose to hold rather than cut because of the inflation risk from oil.
- Revised projections: the RBI lowered its FY27 GDP growth forecast from 6.9 to 6.6 per cent. It raised its CPI inflation projection for FY27 from 4.6 to 5.1 per cent.
- Neutral stance: means the MPC could move in either direction at the next meeting depending on data. It is not committed to a cut or a hike.
The 5.1 per cent inflation projection sits above the 4 per cent target. The MPC's tolerance band is plus or minus 2 percentage points, so 5.1 per cent is within the band but above the midpoint.
Static linkage: Monetary policy, RBI, inflation targeting.
2. GDP growth: 7.7 per cent for FY 2025-26
GS area: Economy
The provisional estimate for India's GDP growth in 2025-26 came in at 7.7 per cent, higher than the February forecast of 7.6 per cent. Quarter 4 grew at 7.8 per cent.
- Sectoral pattern: manufacturing and services grew double-digit. Agriculture growth slowed to 3 per cent from 4.2 per cent in the previous year despite 108 per cent of LPA monsoon.
- Structural shift: services reached 54.3 per cent of GVA, up from 51.9 per cent in 2022-23. Agriculture fell below 20 per cent of GVA.
- Outlook: the RBI projected 6.6 per cent growth for FY27. The West Asia conflict, a potentially weaker monsoon and global demand uncertainty are the downside risks.
Static linkage: GDP, GVA, national accounts, economic growth.
3. TB vaccine trial: VPM1002 and Immuvac
GS area: Science and Technology, Health
The PreVenTB trial led by ICMR across 18 Indian sites enrolled 12,700-plus household contacts of TB patients. The results:
- VPM1002 efficacy: approximately 50.4 per cent against extrapulmonary TB. Against children aged 6 to 14, efficacy reaches 64.6 per cent.
- Immuvac: over 60 per cent efficacy in children aged 6 to 10 against extrapulmonary TB.
- BCG vaccine: the standard TB vaccine. It was introduced over a century ago and is still the only licensed TB vaccine. It is moderately protective in children but does not reliably prevent adult pulmonary TB.
- National TB Elimination Programme: targets 10-20 cases per 100,000 population (down from over 200 at independence). India accounts for roughly a quarter of the global TB burden.
- Why nutrition matters: low BMI correlates with reduced vaccine response. TB prevalence and malnutrition are structurally linked in India.
India adopted TrueNat (a domestic rapid TB diagnostic), rotavirus vaccines and Covaxin before full international endorsement. The TB vaccine pipeline represents the same pragmatic approach to domestic trials.
Static linkage: TB elimination, vaccines, ICMR, public health.
4. West Asia: Iranian strikes and Indian stakes
GS area: International Relations, Economy
Iran struck targets in Kuwait and Bahrain in retaliation for US strikes on Iran's Qeshm Island air defence installations. India's exposure:
- Diaspora: approximately 9 million Indians live in Gulf countries. Their safety, remittances and welfare are a direct national interest.
- Crude imports: India imports approximately 88 per cent of its crude. A significant share transits the Strait of Hormuz.
- Operation precedents: India has conducted evacuations from conflict zones under Operations Ajay, Kaveri and Sindhu. The government monitored whether a fresh evacuation would be needed.
- IMEC disruption: the India-Middle East-Europe Economic Corridor requires stable Gulf passage. The conflict is a direct obstacle to this connectivity ambition.
Static linkage: West Asia, energy security, Indian diaspora, IMEC.
5. India-Russia: Su-57 offer and CAATSA
GS area: International Relations, Defence
Russia's President Putin called India a "reliable partner" and offered joint development of the Su-57 fifth-generation fighter aircraft. Putin is scheduled to visit India for the BRICS summit in September 2026.
- Su-57: Russia's advanced stealth fighter. A joint development offer would allow India to acquire technology and build a domestic manufacturing base.
- CAATSA risk: any major defence deal with Russia exposes India to the threat of US secondary sanctions under the Countering America's Adversaries Through Sanctions Act.
- India-US friction: the US imposed 50 per cent tariffs on Indian exports in 2026, including a 25 per cent penalty for Indian purchases of discounted Russian crude. The absence of head-of-state Quad summits signals stress in the relationship.
- Strategic autonomy: India's position is to maintain defence and energy partnerships with Russia while deepening economic and technology ties with the US. Holding both simultaneously has become harder.
Static linkage: India-Russia relations, Quad, CAATSA, strategic autonomy.
6. Crypto regulation: India vs EU MiCA
GS area: Economy, Governance
India's approach to crypto regulation contrasts with the EU's:
- EU MiCA: the Markets in Crypto-Assets Regulation. A comprehensive framework covering issuers, exchanges and stablecoin providers. It came into full effect in 2024.
- India's current approach: cryptocurrencies are taxed at 30 per cent on gains plus 1 per cent TDS on transactions. There is no comprehensive regulatory framework.
- RBI position: the RBI favours caution on private cryptocurrencies and is promoting the digital rupee (Central Bank Digital Currency).
- The gap: taxation without regulation creates legal uncertainty. Investors cannot distinguish between lawful trading and activity that could attract enforcement action.
Static linkage: Digital currency, financial regulation, CBDC.
7. PFI charges and UAPA
GS area: Polity, Security
Twenty-five members of the Popular Front of India were charged under UAPA for conspiracy. The PFI was banned in 2022. The charge involves a document titled "Vision 2047."
- UAPA (Unlawful Activities Prevention Act): the primary counter-terrorism statute. It enables designation of unlawful associations and terrorist organisations. Bail under UAPA is difficult: the court must be satisfied that there are reasonable grounds to believe the accusations are prima facie true.
- PFI ban: the government designated PFI and eight affiliated organisations as unlawful associations in September 2022 for five years under UAPA.
Static linkage: UAPA, internal security.
8. Manipur ethnic violence
GS area: Polity, Society, Internal Security
Three Kuki villagers were killed in Kangpokpi district and seven houses were torched. The violence stems from the Meitei-Kuki ethnic conflict that began in May 2023.
- Demand: the Kuki-Zo Tribal Council is seeking a "separate administration," effectively a union territory or separate state for hill district communities.
- Constitutional framework: the demand for Sixth Schedule protection or a separate administrative arrangement sits within Article 3 (Parliament's power to create new states from existing ones).
- Duration: over three years of intermittent violence have killed hundreds and displaced over 100,000 people.
Static linkage: Internal security, tribal affairs, northeast India.
9. Anti-defection law and West Bengal
GS area: Polity
A dispute over recognition of the Leader of the Opposition in the West Bengal Assembly raised Tenth Schedule questions:
- Tenth Schedule (52nd Amendment, 1985): the anti-defection law. A member who voluntarily gives up party membership or defies the party whip in the House is liable to be disqualified.
- 91st Amendment, 2003: removed the "split" defence. An original provision allowed a one-third group to split and escape disqualification. The 2003 amendment abolished that exception. Now only a merger with another party (two-thirds of the legislature party) saves members from disqualification.
- Adjudicator: the Speaker decides disqualification cases. Kihoto Hollohan (1992) opened those decisions to judicial review.
Static linkage: Tenth Schedule, anti-defection, Parliament and state legislatures.
10. CBSE cyberattack: DDoS and data law
GS area: Governance, Cybersecurity
The CBSE post-results portal faced a DDoS (Distributed Denial of Service) attack. The attacker generated 30 lakh login attempts in a single window against a system built for thousands. The investigation found authentication bypass vulnerabilities and unauthorised admin access.
- DDoS: an attack that floods a server with traffic from multiple sources to make it unavailable to legitimate users.
- IT Act, Sections 66 and 43: Section 66 covers computer-related offences including unauthorised access. Section 43 covers damage to computer systems without authorisation.
Static linkage: Cybersecurity, IT Act.
11. Andaman gas discovery
GS area: Economy, Geography
Oil India Limited confirmed natural gas in the Vijayapuram-3 well in the Andaman basin. The Andaman basin has long been identified as a frontier hydrocarbon area. Successful gas discovery reduces import dependence and opens the possibility of domestic supply to southern and island markets.
Static linkage: Petroleum, domestic exploration, energy security.
12. Briefly noted
- Foreign capital attraction: the Centre removed LTCG tax on FII investments in government bonds effective April 1, 2026. The Fully Accessible Route was expanded to 15-, 30- and 40-year securities.
- El Nino economic impact: editorial noted that heat stress from El Nino reduces outdoor worker productivity and daily wages. Urban heat islands amplify inequality.
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