National Affairs
1. Union Government Pushes Fiscal Discipline Ahead of Union Budget 2026
The Union Ministry of Finance reaffirmed commitment to fiscal consolidation with a medium-term target to reduce the fiscal deficit below 4.5% of GDP by FY 2026–27.
Capital expenditure allocation for infrastructure is expected to remain above ₹11 lakh crore, focusing on railways, highways, defence manufacturing, and digital public infrastructure.
Special emphasis placed on banking sector recapitalisation and credit flow to MSMEs.
2. RBI Strengthens Banking Liquidity Monitoring Framework
The Reserve Bank of India enhanced Liquidity Coverage Ratio (LCR) monitoring norms for scheduled commercial banks.
Banks directed to maintain high-quality liquid assets (HQLA) sufficient to cover 30-day net cash outflows under stressed scenarios.
Objective: Improve financial stability, relevant for RBI Grade B and Bank PO examinations.
3. National Skill Development Drive for Green Jobs
Government announced expansion of green skill training programs targeting 1 million youth by 2027.
Focus areas include renewable energy technicians, EV maintenance, battery recycling, and hydrogen technology.
Implemented through NSDC and Industrial Training Institutes (ITIs).
International Affairs
4. BRICS Nations Reaffirm Commitment to De-Dollarisation
BRICS member countries reiterated efforts to enhance local currency trade settlement.
Share of trade settled in non-USD currencies among BRICS crossed 28% in 2025, up from 18% in 2022.
Development banks encouraged to increase cross-border financing in local currencies.
5. Global Economic Outlook 2026 Signals Moderate Growth
World economic growth projected at 2.9% for 2026, with emerging markets contributing over 60% of global growth.
Inflation moderation observed globally, though geopolitical tensions remain a downside risk.
India projected to remain the fastest-growing major economy with growth above 6.5%.
Economy & Banking
6. India’s Forex Reserves Remain Above USD 630 Billion
India’s foreign exchange reserves sustained above USD 630 billion, providing import cover of over 10 months.
Major contributors: Foreign Currency Assets (FCA) and Gold reserves exceeding 800 tonnes.
Strengthens rupee stability and external sector resilience.
7. Digital Payments Continue Rapid Expansion
UPI transactions in December 2025 crossed 14 billion transactions, with value exceeding ₹21 lakh crore.
India accounts for nearly 46% of global real-time digital payment volumes.
UPI adoption expanded to cross-border remittances in select countries.
Defence & Security
8. Indigenous Defence Production Reaches Record High
India’s defence production value crossed ₹1.25 lakh crore in FY 2025.
Indigenous content exceeded 70% in several key platforms.
Exports of defence equipment reached ₹21,000 crore, reflecting global demand.
Science & Technology
9. ISRO Advances Human Spaceflight Preparations
Successful testing of crew module recovery systems under Gaganyaan mission.
India targets first crewed mission by 2027.
Emphasis on indigenous life-support and avionics systems.
10. AI Governance Framework Strengthened
India advanced national framework for ethical AI and data protection.
Focus areas: algorithmic transparency, data sovereignty, and responsible AI deployment in public services.
Environment & Climate
11. India Accelerates Renewable Energy Capacity Addition
Total installed renewable energy capacity crossed 195 GW, including solar, wind, biomass, and hydro.
India targets 500 GW of non-fossil fuel capacity by 2030.
Green hydrogen mission expected to attract investments worth ₹8 lakh crore.
Sports
12. India’s Strong Showing in International Cricket
India recorded a series win in overseas Test cricket, strengthening its position in the ICC World Test Championship standings.
Key performances included centuries by top-order batsmen and five-wicket hauls by pace bowlers.
India remained among the top two ranked teams across all ICC formats.
Awards & Honours
13. National Awards for Excellence in Governance Announced
Multiple states recognised for digital governance, ease of doing business, and public service delivery.
Awards focused on technology-driven service delivery and citizen-centric reforms.
Important Appointments
14. Senior Bureaucratic and Financial Appointments
Government announced new appointments in public sector banks and financial regulatory bodies.
Appointees selected based on experience in banking reforms, financial stability, and governance.
Relevant for static GK and current appointments sections.
Key Exam-Relevant Facts at a Glance
Fiscal deficit target: Below 4.5% of GDP
Forex reserves: USD 630+ billion
Renewable energy capacity: 195+ GW
Defence exports: ₹21,000 crore
UPI transactions (Dec 2025): 14 billion+
Global growth forecast (2026): 2.9%
