1. National Affairs (India)
1.1 Union Budget 2026–27 Highlights
Union Budget 2026–27 presented on 01 February 2026 by the Union Finance Minister of India.
Fiscal Deficit Target: Approximately 4.5% of GDP, aligned with medium-term fiscal consolidation.
Capital Expenditure Allocation: Increased by over 10%, focusing on railways, highways, and digital infrastructure.
Agriculture & Rural Development: Enhanced allocation for irrigation, agri-tech startups, and farmer credit schemes.
MSME Sector: Expanded credit guarantee coverage and lower interest subvention for small enterprises.
Taxation:
No major changes in direct tax slabs.
Continued push for faceless tax administration and simplified GST compliance.
Green Growth: Higher budgetary allocation for renewable energy, green hydrogen, and EV infrastructure.
1.2 Economic and Financial Developments
India’s GDP Growth Projection (FY 2026): Estimated between 6.8% – 7.1%.
Retail Inflation (CPI): Remained within RBI’s tolerance band of 2–6%.
Forex Reserves: Crossed USD 640 billion, strengthening external sector stability.
Digital Payments: UPI transactions exceeded 14 billion transactions per month in January 2026.
1.3 Government Schemes & Policy Initiatives
Expansion of PM Gati Shakti National Master Plan to include multimodal logistics parks.
Rollout of AI-based crop insurance assessment under the Pradhan Mantri Fasal Bima Yojana.
Nationwide implementation of One Nation One Ration Card completed.
2. International Affairs
2.1 Global Economy & Institutions
International Monetary Fund (IMF) projected global growth at 3.1% for 2026.
Emerging markets, including India, expected to remain key drivers of global growth.
World Bank emphasized climate-resilient infrastructure financing for developing nations.
2.2 Diplomatic & Strategic Developments
India strengthened trade and strategic cooperation with ASEAN nations.
Renewed focus on Indo-Pacific security cooperation through multilateral dialogues.
Global discussions intensified on AI governance and ethical frameworks.
3. Banking, Finance & Economy (Exam Focus)
3.1 Banking Sector Updates
Public Sector Banks (PSBs): Gross NPAs declined below 4%, the lowest in over a decade.
Credit growth remained strong at around 14–15% year-on-year.
RBI continued liquidity management through variable rate repo and reverse repo auctions.
3.2 Financial Markets
Indian equity markets touched fresh highs, driven by banking, capital goods, and PSU stocks.
Benchmark indices recorded strong January 2026 monthly gains.
Increased foreign portfolio inflows into debt markets following index inclusion announcements.
4. Science & Technology
India advanced its semiconductor manufacturing ecosystem with new fabrication units.
Significant progress in quantum computing research under the National Quantum Mission.
ISRO intensified preparations for future human spaceflight and lunar exploration missions.
5. Environment & Ecology
India reaffirmed commitment to Net Zero by 2070.
Expansion of national carbon market framework to incentivize green investments.
Increased forest and tree cover reported in several states due to afforestation drives.
6. Sports Current Affairs
6.1 Cricket
India continued strong performance in international bilateral series in January 2026.
Several Indian players achieved ICC ranking improvements across formats.
6.2 Other Sports
Indian athletes secured medals in international shooting, wrestling, and badminton events.
Preparations intensified for upcoming multi-sport global competitions.
7. Awards & Honours
Padma Awards 2026 announced on the eve of Republic Day:
Honoured individuals from arts, science, medicine, sports, social work, and public service.
National awards recognized contributions in classical music, literature, and grassroots innovation.
8. Appointments & Resignations
Senior appointments made across banking, regulatory bodies, and public sector enterprises.
New leadership roles aimed at strengthening governance, compliance, and digital transformation.
9. Important Days & Observations
1 February: Observed annually as Indian Coast Guard Raising Day.
Various national and international observances focused on financial literacy and environmental awareness during late January.
