Daily UPSC Current Affairs

The Reserve Bank of India has introduced the concept of Specified Non-Financial Assets (SNFA) — immovable properties that banks acquire when borrowers default — through amendments to its Resolution of Stressed Assets Directions, 2025. The new framework bars banks, small finance banks, and NBFCs from selling such assets back to the defaulting borrower or its related parties, mandates disposal primarily through public auctions on SARFAESI Act principles, and prescribes conservative valuation norms. This article explains what SNFAs are, the full framework of acquisition, valuation, and disposal, the NPA and SARFAESI background, the statutory basis in the Banking Regulation Act, and why these norms matter — from the UPSC Prelims and Mains perspective.

The Union Cabinet has approved Semicon 2.0, the second phase of the India Semiconductor Mission (ISM 2.0), with a total outlay of ₹1,27,500 crore to build India's semiconductor design and manufacturing ecosystem on six pillars. Media reports indicate the Centre will not subsidise land acquisition or technology transfer costs under the new scheme, with states expected to take the lead on land, and capital subsidies for silicon fabs reduced from 50% to 40%. This article explains what semiconductors are, the achievements of ISM 1.0, the six pillars of Semicon 2.0, the revised incentive structure, the role of states, India's chip targets for 2029 and 2035, and the challenges ahead — all from the UPSC Prelims and Mains perspective.

The Ladakh administration has announced steps to extend the Ladakh Autonomous Hill Development Council framework to all seven districts, instead of limiting such councils to Leh and Kargil. While the administration presents the proposal as democratic decentralisation suited to Ladakh’s difficult geography, the Apex Body Leh and Kargil Democratic Alliance fear that multiple district councils could dilute the powers of a proposed Union Territory-level representative body being discussed under an Article 371-type framework.

The Gujarat government has announced the Viksit Gujarat Data Centre Policy 2026-29, targeting investments of about ₹6 lakh crore and the creation of 7.5 gigawatts (GW) of data centre capacity — claimed to be the highest in the country. The policy offers tax and duty exemptions, power and water guarantees and building-norm relaxations, mandates that 51% of electricity for core operations come from green energy, and seeks to develop Dholera as a global data centre city. This article explains what data centres and hyperscale AI data centres are, the policy's incentives, the Reliance-Meta Jamnagar project, India's data centre landscape, and the associated energy, water and policy challenges.

China test-fired a submarine-launched intercontinental ballistic missile from the South China Sea into the Southern Pacific Ocean on 6 July 2026 — its first-ever SLBM launch into international waters and only its second ballistic missile test in international waters since 1980. The missile, believed to be the JL-2 or JL-3, flew over the Philippines and landed in the South Pacific nuclear-free zone, drawing protests from the US, Japan, Australia and Pacific island nations. This article explains ballistic missile basics, the JL missile family, China's nuclear triad and evolving nuclear strategy, the Treaty of Rarotonga, and the implications for India's nuclear deterrent and the Indo-Pacific.

The India-UK Comprehensive Economic and Trade Agreement (CETA) and the companion Double Contribution Convention (DCC) entered into force on 15 July 2026, operationalising India's first comprehensive free trade agreement with a major developed economy. The UK has eliminated tariffs on 99% of Indian tariff lines, while India has cut duties on around 90% of products, including first-ever FTA concessions on cars and Scotch whisky. This article explains what CETA is, its negotiation journey, sector-wise gains and concessions, the DCC for professionals, the new self-declaration rules of origin, the steel quota arrangement, the CBAM concern, and CETA's place in India's FTA strategy.

The Union Cabinet on 15 July 2026 approved Semicon 2.0, the second phase of the India Semiconductor Mission, with a total outlay of ₹1,27,500 crore to build a complete semiconductor ecosystem across six pillars. The Cabinet also cleared the Mobile Phone Manufacturing Scheme (MPMS) worth ₹62,500 crore as the successor to the PLI scheme for smartphones. This article explains what semiconductors are, the journey of ISM 1.0, the six pillars of Semicon 2.0, the incentive structure of MPMS, India's mobile manufacturing success story, approved chip plants and their locations, and the challenges ahead.

India has amended the Foreign Trade Policy 2023 through DGFT Notification No. 23/2026-27 to prohibit imports produced wholly or partly through forced labour. The amendment inserts Paragraph 2.20B, establishes an enquiry mechanism and adopts the International Labour Organization’s definition of forced labour. The decision comes while the United States Trade Representative is considering a 12.5% additional tariff on Indian goods under its Section 301 investigation.

India's wholesale inflation measured by the Wholesale Price Index (WPI) surged to 9.87 per cent in June 2026 — the highest in the revised series with base year 2022-23 — from 9.68 per cent in May, driven by a sharp acceleration in food prices even as fuel inflation eased, with economists warning that inflation is becoming more generalised. The Ministry of Commerce and Industry also released the new Producer Price Index (PPI), which rose to 9.57 per cent. This article explains the June data, the revised WPI series, the WPI-to-PPI transition, the WPI–CPI distinction, and the implications for monetary policy and the economy, for UPSC Prelims and Mains.

US President Donald Trump has reversed his plan to charge a 20 per cent fee on commercial vessels transiting the Strait of Hormuz, replacing it with trade and investment deals by Gulf states, days after announcing the levy amid the ongoing US–Iran conflict over control of the strait. The proposal had drawn scepticism over its legality and calculation, with the International Maritime Organization opposing tolls on straits used for international navigation. This article explains the episode, the geography and law of the Strait of Hormuz, UNCLOS and transit passage, the US–Iran standoff, and the implications for India's energy security, for UPSC Prelims and Mains.

The Ministry of External Affairs has stated that an Indian passport is a document issued under the Passports Act, 1967 to "regulate the departure" of Indian citizens from the country, and not a proof of citizenship, with less than 8 per cent of Indian citizens currently holding one. The clarification, made amid the debate over documents accepted as proof of citizenship during the Special Intensive Revision (SIR) of electoral rolls, has drawn sharp political reactions. This article explains the MEA's position, the Passports Act 1967, citizenship law under the Citizenship Act, 1955 and Articles 5–11, the SIR exercise, and the Supreme Court's rulings, for UPSC Prelims and Mains.

The Ladakh administration has announced that Autonomous Hill Development Councils (AHDCs) will be constituted in each of the Union Territory's seven districts, extending elected local self-governance to the five new districts of Drass, Sham, Nubra, Changthang and Zanskar. The move has been opposed by the Apex Body Leh (ABL) and the Kargil Democratic Alliance (KDA), who fear it may dilute the powers of the proposed UT-level representative government being negotiated under Article 371. This article explains the announcement, the LAHDC Act, 1997, the background of Ladakh's statehood and Sixth Schedule demands, the ongoing MHA negotiations, and the constitutional dimensions of the issue for UPSC Prelims and Mains.