DAILY CURRENT AFFAIRS

S.No	Topic
	Daily Hindu Analysis
1.	India is now the fourth largest economy
2.	The India–New Zealand FTA — unlocking growth
3.	Law on ‘suspension of sentence’
4.	Defence Ministry inks contracts for procurements for Army and Navy at a cost of over ₹4,600 cr
5.	Open access to AI infra key in India
6.	HAL enters civil market with Dhruv NG helicopter
	Daily Current Affairs
7.	Narsapuram Lace Craft
8.	Australia to eliminate customs duties on 100% tariff lines for Indian exports under Ind-Aus ECTA
9.	Rabies
10.	Kanger Valley National Park
11.	Valmiki Tiger Reserve

India is now the fourth largest economy

Context

India has overtaken Japan to become the world’s fourth-largest economy, with GDP reaching $4.18 trillion, reflecting strong macroeconomic performance, robust domestic demand, and sustained reform momentum.

Key Points

1. India’s Global Economic Position

• India has become the 4th largest economy, surpassing Japan.

• It is projected to become the 3rd largest economy by 2030, overtaking Germany.

2. Growth Performance

• GDP growth recorded at 8.2% in Q2 of 2025–26, up from 7.8% in the previous quarter.

• Growth driven by strong domestic consumption, services, and manufacturing.

3. Drivers of Economic Expansion

• Private consumption remained the key growth engine.

• Public capital expenditure supported infrastructure expansion.

• Manufacturing and services sectors showed consistent performance.

4. Global Recognition and Forecasts

• World Bank, IMF, and OECD project India to remain the fastest-growing major economy.

• International agencies forecast GDP growth of around 6.5–7% over the next two years.

5. Structural Strengths of the Indian Economy

• Large domestic market and favourable demographics.

• Ongoing reforms in taxation, logistics, infrastructure, and digital economy.

• Stable macroeconomic indicators including controlled inflation and improving fiscal health.

6. Future Outlook

• India aims to achieve high-income status by 2047.

• Focus on manufacturing, exports, and innovation-led growth to sustain momentum.

UPSC Prelims Question

Q. India recently became the world’s fourth-largest economy primarily due to:

1. Rapid growth in domestic consumption

2. Expansion in manufacturing and services

3. Strong export-led growth alone Which of the above statements is/are correct? a) 1 and 2 only

b) 2 and 3 only

c) 1 and 3 only

d) 1, 2 and 3

Answer: a) 1 and 2 only

Explanation: India’s growth is mainly driven by domestic consumption and expanding services and manufacturing sectors. Exports support growth but are not the sole driver.

The India–New Zealand FTA — unlocking growth

Context

India and New Zealand have concluded a Free Trade Agreement (FTA), reflecting India’s growing integration with global markets and its strategy to strengthen economic diplomacy amid changing global trade dynamics.

Detailed Analysis

1. Strategic Significance of the FTA

• The agreement signals deeper economic engagement between India and New Zealand amid shifting global trade patterns.

• It strengthens India’s position as a reliable and rules-based trading partner.

2. Market Access and Trade Expansion

• New Zealand has offered duty-free access on 100% of tariff lines for Indian exports.

• India has provided phased market access to New Zealand on about 70% of tariff lines.

• Key beneficiary sectors: textiles, apparel, pharmaceuticals, engineering goods, and agriculture-based products.

3. Services and Mobility Gains

• Enhanced access for Indian professionals in IT, education, healthcare, and other services.

• Provisions for student mobility, post-study work opportunities, and skilled labour movement strengthen people-to-people ties.

4. Investment and Supply Chain Integration

• The agreement encourages investments in manufacturing, agri-processing, and clean energy.

• It supports resilient supply chains and deeper integration into global value chains.

5. Strategic and Geopolitical Importance

• Reinforces India’s Indo-Pacific engagement and diversifies trade partnerships beyond traditional markets.

• Complements India’s broader strategy of forging high-quality FTAs with trusted partners.

6. Challenges and Implementation Issues

• Indian exporters must address non-tariff barriers, standards compliance, and awareness gaps.

• Effective utilisation of the FTA will depend on capacity-building and industry readiness.

UPSC Mains Question

“Discuss the strategic and economic significance of the India–New Zealand Free Trade

Agreement in the context of India’s evolving trade policy.”

Law on ‘suspension of sentence’

Context

The article examines the legal debate around the suspension of sentence by appellate courts, triggered by the Supreme Court’s intervention in the Kuldeep Singh Sengar case. It analyses how courts balance individual liberty, victim protection, and public interest in serious criminal offences.

Detailed Analysis

1. What is ‘Suspension of Sentence’?

• It refers to the temporary suspension of the execution of a sentence during the pendency of an appeal.

• Governed mainly by Section 389 of the Criminal Procedure Code (CrPC).

• It does not annul conviction; it only pauses punishment.

2. Legal Distinction: Bail vs Suspension of Sentence

• Bail is granted before conviction; suspension of sentence applies after conviction.

• Suspension is discretionary and requires judicial satisfaction based on facts, severity of offence, and likelihood of appeal success.

3. Supreme Court’s Observations in the Case

• The apex court questioned whether suspension of sentence should be routinely granted in cases involving serious crimes like rape and murder.

• It highlighted that appellate courts must record strong reasons before suspending sentences in heinous offences.

4. Public Servant and POCSO Interpretation

• The Delhi High Court had ruled that an MLA does not fall under the definition of ‘public servant’ under the POCSO Act.

• The Supreme Court flagged this interpretation as problematic, stating that narrow readings may dilute the protective intent of child protection laws.

5. Victim-Centric Justice Concerns

• The article stresses that suspension of sentence can retraumatise victims, especially in cases involving sexual violence.

• It underscores the need to balance the rights of the accused with victim dignity, safety, and public confidence in the justice system.

6. Judicial Caution and Precedents

• Past Supreme Court rulings emphasize that suspension of sentence should be an exception, not the norm, particularly in heinous crimes.

• The judiciary must consider societal impact, severity of offence, and risk of witness intimidation.

UPSC Mains Question

“Critically examine the judicial principles governing suspension of sentence in serious criminal cases. How can courts balance individual liberty with societal interest?”

Defence Ministry inks contracts for procurements for Army and Navy at a cost of over ₹4,600 cr

Context

The Ministry of Defence has signed major procurement contracts worth over ₹4,600 crore to strengthen India’s military preparedness, boost indigenisation, and enhance operational capabilities of the Army and Navy.

Key Points

1. Major Defence Procurement Approved

• Contracts worth ₹4,666 crore signed by the Ministry of Defence.

• Aimed at strengthening combat preparedness and modernisation of the armed forces.

2. Army Procurement – Close Quarter Battle (CQB) Carbines

• Over 4.25 lakh CQB carbines to be procured for the Indian Army and Navy.

• Manufactured by Bharat Forge Limited and PLR Systems under Make in India.

• Enhances lethality, mobility, and effectiveness in close-combat and urban warfare situations.

3. Navy Procurement – Heavyweight Torpedoes

• Contract worth ₹1,896 crore signed with WASS Submarine Systems (Italy).

• Procurement of 48 heavyweight torpedoes for Kalvari-class submarines.

• Delivery scheduled to begin from April 2028.

• Enhances undersea warfare, stealth capability, and maritime dominance.

4. Strategic and Economic Significance

• Strengthens indigenous defence manufacturing under Aatmanirbhar Bharat.

• Supports MSMEs and domestic defence industry ecosystem.

• Reduces dependence on imports and enhances technological self-reliance.

5. Operational Impact

• Improves close-quarter combat capability of infantry forces.

• Strengthens underwater combat and deterrence capability of the Indian Navy.

• Enhances overall combat readiness of the armed forces.

UPSC Prelims Question

Q. Consider the following statements regarding the Defence Acquisition Council (DAC):

1. It is the highest decision-making body for defence procurement in India.

2. It is chaired by the Defence Minister of India.

3. It approves capital acquisition proposals of the Armed Forces.

Which of the above statements is/are correct? a) 1 and 2 only

b) 2 and 3 only

c) 1, 2 and 3

d) 1 and 3 only Answer: c) 1, 2 and 3 Explanation:

The Defence Acquisition Council is the apex body for defence procurement, chaired by the Defence Minister, and is responsible for approving capital acquisitions and major defence purchases.

Open access to AI infra key in India

Context

The Office of the Principal Scientific Adviser (PSA) has highlighted the need for open access to Artificial Intelligence (AI) infrastructure to ensure inclusive innovation, prevent concentration of power, and support India’s long-term digital and economic growth.

Key Points

1. Need for Open AI Infrastructure

• The government emphasised that AI infrastructure should not remain limited to a few large corporations.

• Broad access is essential to enable startups, academia, MSMEs and researchers to innovate responsibly.

2. Core Components of AI Infrastructure

• Compute power: GPUs and high-performance computing resources.

• Data availability: High-quality, diverse, and interoperable datasets.

• AI tools and platforms: Open-source frameworks for model development and deployment.

3. Role of Government Initiatives

• Under the IndiaAI Mission, the government is expanding access to computing resources for startups and research institutions.

• India’s Digital Public Infrastructure (DPI) such as Aadhaar and UPI is proposed to be integrated with AI ecosystems to enable inclusive innovation.

4. Energy and Sustainability Concerns

• Data centres currently account for around 0.5% of India’s total electricity consumption, which could rise to 3% by 2030.

• Emphasis is placed on energy-efficient AI systems and sustainable data centre development.

5. Strategic Importance

• Reduces dependence on foreign AI ecosystems dominated by a few global firms.

• Enhances national security, technological sovereignty, and economic competitiveness.

• Encourages innovation in key sectors such as healthcare, agriculture, governance, and education.

6. Way Forward Suggested in the Article

• Democratise access to AI compute and datasets.

• Strengthen public-private partnerships in AI research.

• Build indigenous capacity while ensuring ethical and responsible AI deployment.

UPSC Prelims Question

Q. With reference to India’s Artificial Intelligence ecosystem, consider the following statements:

1. The government aims to democratise access to AI infrastructure through public digital platforms.

2. Data centres currently consume nearly 10% of India’s total electricity.

3. India’s AI strategy emphasises inclusive access, sustainability, and indigenous innovation.

Which of the above statements is/are correct? a) 1 and 2 only

b) 1 and 3 only

c) 2 and 3 only

d) 1, 2 and 3

Answer: b) 1 and 3 only Explanation:

Data centres currently consume around 0.5% of India’s electricity, not 10%. The other statements correctly reflect India’s AI policy focus.

HAL enters civil market with Dhruv NG helicopter

Context

Hindustan Aeronautics Limited (HAL) has entered the civil aviation market with the maiden flight of the Dhruv New Generation (NG) helicopter, marking a major milestone in India’s push for self-reliance in aerospace manufacturing.

Key Points

1. Indigenous Civil Aviation Milestone

• HAL successfully conducted the maiden flight of the Dhruv NG, a 5.5-tonne, light twin-engine helicopter.

• The helicopter is fully designed, developed, and manufactured in India, marking a major step under the Atmanirbhar Bharat initiative.

2. Certification and Regulatory Approval

• The helicopter received certification from the Directorate General of Civil Aviation (DGCA).

• It is the first indigenously developed civil helicopter to receive such certification in its category.

3. Technical and Operational Features

• Powered by the Shakti engine, co-developed by HAL and Safran.

• Designed for multi-role operations including passenger transport, medical evacuation, logistics, and disaster response.

• Capable of operating in diverse terrains, including high-altitude and hot-and-high conditions.

4. Strategic and Industrial Significance

• Marks HAL’s formal entry into the civil helicopter market, traditionally dominated by foreign manufacturers.

Strengthens India’s aerospace manufacturing ecosystem and supports export potential.

• Enhances self-reliance in critical aviation technologies and reduces import dependence.

5. Economic and Strategic Impact

• Boosts domestic manufacturing and skilled employment.

• Aligns with the government’s push for Make in India and Aatmanirbhar Bharat in the aviation sector.

• Positions India as a future hub for civilian helicopter production and maintenance.

UPSC Prelims Question

Q. Consider the following statements regarding the Dhruv NG helicopter:

1. It is India’s first indigenously developed civil helicopter certified by the DGCA.

2. It is powered by a foreign engine without Indian collaboration.

3. It is designed for multi-role operations, including high-altitude missions. Which of the statements given above is/are correct? a) 1 and 2 only

b) 1 and 3 only

c) 2 and 3 only

d) 1, 2 and 3

Answer: b) 1 and 3 only Explanation:

The Dhruv NG is India’s first indigenously developed civil helicopter certified by DGCA and is designed for multi-role operations. Its engine is developed through Indo-French collaboration, not purely foreign.

Source: The Hindu

Narsapuram Lace Craft

Syllabus: GS Paper 1 – Art and Culture

Context

The Prime Minister highlighted Narsapuram Lace Craft in Man Ki Baat as an example of women-led economic empowerment and cultural continuity.

Its Geographical Indication (GI) tag has renewed national focus on this traditional craft of the Godavari region.

Key Points

Nature of the Craft

• A handmade crochet lace tradition created using a single crochet hook.

• Known for intricate designs requiring high skill, patience, and precision.

Region and Centres

• Practised mainly in West Godavari and Dr. B.R. Ambedkar Konaseema districts of Andhra Pradesh.

• Key centres include Narsapur, Palacole, Razole, and Amalapuram.

Historical Background

• Introduced in 1844 by European missionaries who trained local women.

• Survived famines and economic downturns, sustaining livelihoods across generations.

Materials and Tools

• Uses fine cotton threads, along with silk, rayon, or synthetic yarns.

• Crafted with crochet hooks of varying sizes to achieve different lace textures.

Technique and Design

Based on manual looping and interlocking stitches, without machinery.

• Motifs include floral, paisley, and geometric patterns inspired by nature.

Product Range

• Includes doilies, bedspreads, table linen, cushion covers, garments, stoles, and wall hangings.

Economic and Cultural Significance

• Provides regular income to thousands of women, strengthening household economies.

• Preserves an indigenous textile tradition and women-centric artisanal knowledge.

Prelims Practice Question

Q. With reference to Narsapuram Lace Craft, consider the following statements:

1. It is a machine-made lace tradition introduced during the colonial period.

2. The craft is predominantly practised by women in the Godavari region of Andhra Pradesh and has received a GI tag.

Which of the statements given above is/are correct? a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2 Answer: b) 2 only Explanation:

Narsapuram Lace Craft is handmade, not machine-made, and is a women-led traditional craft from Andhra Pradesh with GI recognition.

Source: Deccan Chronicle

Australia to eliminate customs duties on 100% tariff lines for Indian exports under

Ind-Aus ECTA

Syllabus: GS Paper 2 – International Relations (India’s trade relations and agreements)

Context

Australia will eliminate customs duties on 100% of its tariff lines for Indian exports from January 1, 2026, marking three years of the India–Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) and significantly deepening bilateral trade ties.

Key Points

Ind-Aus ECTA and Tariff-Free Access

• From January 2026, all Indian exports to Australia will enjoy zero customs duty.

• Enhances price competitiveness of Indian goods and strengthens supply-chain integration between both economies.

Impact on Bilateral Trade

• India’s exports to Australia grew by 8% in FY 2024–25, improving India’s trade balance.

• Reflects increasing utilisation of ECTA preferences and growing trade confidence.

Sectoral Export Performance

• Strong growth in manufacturing, chemicals, textiles, plastics, pharmaceuticals, petroleum products, and gems & jewellery.

• Gems and jewellery exports rose 16% during April–November 2025.

• Agricultural exports expanded across fruits, vegetables, marine products, spices, and coffee.

Benefits for MSMEs and Labour-Intensive Sectors

Major gains expected for textiles, leather, engineering goods, gems & jewellery, and processed food.

• Lower landed costs improve margins and export volumes, especially for MSMEs with thin profitability.

Strategic Significance for Both Countries

• For India: Access to a developed, high-income market with predictable trade rules.

• For Australia: Stable sourcing from a trusted partner, diversifying supply chains.

Prelims Practice Question

Q. With reference to the India–Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA), consider the following statements:

1. From January 1, 2026, all Indian exports to Australia will attract zero customs duty.

2. The agreement is expected to benefit labour-intensive sectors such as textiles and leather in India.

Which of the statements given above is/are correct? a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2 Answer: c) Both 1 and 2 Explanation:

Ind-Aus ECTA provides for 100% tariff elimination by Australia from January 2026, and the removal of duties significantly benefits labour-intensive sectors and MSMEs in India.

Source: The Hindu

Rabies

Syllabus: GS Paper 3 – Science and Technology (Health and Diseases)

Context

A recent study highlights that out of nearly 59,000 rabies-related human deaths globally each year, India accounts for about one-third (around 20,000 deaths), the highest for any country.

Key Points

Nature of the Disease

• Rabies is a vaccine-preventable, zoonotic viral disease.

• Classified as a Neglected Tropical Disease (NTD) affecting poor and vulnerable populations.

Causative Agent

• Caused by an RNA virus of the Lyssavirus genus, family Rhabdoviridae.

Vulnerable Species

• Affects all mammals, including dogs, cats, livestock, and wildlife.

• Dogs are the primary source of human rabies deaths.

Mode of Transmission

• Spread through saliva via bites, scratches, or contact with mucous membranes (eyes, mouth, open wounds).

Clinical Forms

• Furious rabies: Hyperactivity, agitation, hallucinations.

• Paralytic rabies: Muscle weakness progressing to paralysis and coma.

Incubation Period

Usually 2–3 months, but can range from 1 week to 1 year, depending on bite severity and location.

Symptoms and Progression

• Early symptoms: Fever, pain, tingling or burning at bite site.

• Later stages: Fatal inflammation of the brain and spinal cord.

Fatality Rate

• 100% fatal once clinical symptoms appear, making early prevention critical.

Prevention and Control

• Mass vaccination of dogs, including puppies, is the most cost-effective strategy.

• Prevents transmission at the source and protects humans indirectly.

Prelims Practice Question

Q. With reference to rabies, consider the following statements:

1. Rabies is caused by a DNA virus belonging to the Rhabdoviridae family.

2. Once clinical symptoms of rabies appear, the disease is almost always fatal. Which of the statements given above is/are correct? a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2 

Answer: b) 2 only Explanation:

Rabies is caused by an RNA virus, not a DNA virus, but once symptoms manifest, it is 100% fatal, making prevention and post-exposure prophylaxis crucial.

Source: The Hindu

Kanger Valley National Park

Syllabus: GS Paper 1 – Geography (Physical Geography & Biodiversity)

Context

The Chhattisgarh government has intensified efforts to secure UNESCO World Heritage Site status for Kanger Valley National Park, highlighting its ecological, geological, and biodiversity significance.

Key Points

Location and Setting

• Located in Jagdalpur, Bastar district of Chhattisgarh.

• Lies within the Bastar Plateau, part of the Eastern Ghats ecological region.

Origin of Name

• Named after the Kanger River, which flows through the park and is a tributary of the Kolab River, eventually joining the Godavari basin.

Establishment and Area

• Declared a National Park in 1982 under the Wildlife (Protection) Act, 1972.

• Covers an area of approximately 200 sq. km.

Physiography and Landscape

• Characterised by undulating terrain, deep gorges, limestone caves, plateaus, and forested valleys.

• The diverse topography supports rich biodiversity and unique geomorphological features.

Major Natural Attractions

• Tirathgarh Waterfalls: A spectacular multi-tiered waterfall plunging from about 150 feet.

Limestone Caves: Notable ones include Kotumsar, Kailash, and Dandak caves, known for stalactite and stalagmite formations.

Flora

• Dominated by moist deciduous forests.

• Major species include sal, teak, bamboo, and mixed forest vegetation.

Fauna

• Mammals: Tiger, leopard, wild cat, sambar, chital, barking deer, mouse deer, flying squirrel.

• Primates and birds: Langur, rhesus macaque, hill myna, red jungle fowl, rackettailed drongo, parrots.

Ecological Importance

• Acts as a biodiversity hotspot in central India.

• Supports forest-dependent tribal communities and contributes to regional ecological balance.

Prelims Practice Question

Q. Consider the following statements regarding Kanger Valley National Park:

1. It is located in the Bastar region of Chhattisgarh.

2. It is drained by the Kanger River, a tributary of the Godavari.

3. It is known for extensive mangrove forests and coral reefs.

Which of the statements given above is/are correct? a) 1 and 2 only

b) 2 and 3 only

c) 1 and 3 only

d) 1, 2 and 3

Answer: a) 1 and 2 only Explanation:

Kanger Valley National Park lies in Bastar, is drained by the Kanger River (a tributary of the Godavari), and is known for forests and caves — not mangroves or coral reefs.

Source: Deccan Chronicle