The Reserve Bank of India (RBI) has proposed to the Union government that a plan to link central bank digital currencies (CBDCs) of BRICS nations be included in the agenda for the 2026 BRICS summit. This initiative aims to simplify cross-border payments and potentially reduce reliance on the U.S. dollar as geopolitical tensions rise. While the RBI clarifies that this is not a direct move toward de-dollarization, it builds on previous declarations for interoperability. Currently, all five main BRICS members—Brazil, Russia, India, China, and South Africa—are running CBDC pilot projects to enhance transaction efficiency.
The proposal seeks to enhance interoperability between the payment systems of BRICS member nations to make cross-border transactions more efficient.
Linking CBDCs could expedite international trade settlements and bolster the global usage of local currencies like the Indian Rupee.
India's digital currency, the e-rupee, has already attracted 7 million retail users since its launch in December 2022.
Exam Points
India's CBDC (e-rupee) was launched in December 2022.
BRICS members include Brazil, Russia, India, China, and South Africa.
The 2026 BRICS summit is the proposed timeline for presenting this digital currency link plan.
The International Monetary Fund (IMF), in its January 2026 World Economic Outlook update, has revised India's GDP growth estimate for the current financial year (2025-26) upward from 6.6% to 7.3%. This revision is primarily a reflection of stronger-than-expected growth in the third quarter and robust momentum in the fourth quarter. While the IMF projects growth to moderate to 6.4% in 2026 and 2027 as temporary factors wane, India remains a global bright spot. The report also notes that inflation in India is expected to return to near-target levels of 4% set by the RBI.
The 0.7 percentage point upward revision reflects India's resilient domestic demand and strong economic momentum despite global headwinds.
Global economic growth is projected to remain steady at 3.3% in 2026 and 3.2% in 2027, largely unchanged from 2025.
The IMF's 7.3% projection is slightly lower than the Union government's prediction of 7.4% for the same fiscal period.
Former diplomat Syed Akbaruddin argues that global governance is shifting from large, stagnant forums like the UN and G-20 to smaller, more functional coalitions. As the UN remains weak and the G-20 faces domestic political pressures, India's best opportunities lie in 'diplomatic white spaces'—gaps in global leadership where no single power can take charge. India should focus on coalitions like the Quad and partnerships with the EU to deliver global public goods. The article emphasizes that success in 2026 will depend on making these 'small tables' work through practical cooperation rather than just ceremony.
The European Union (EU) is represented as a 27-member bloc at India's 2026 Republic Day, signaling a shift toward institutional leadership.
BRICS expansion has widened its reach but blurred its focus, requiring India to steer it toward practical outcomes like the New Development Bank.
The Quad's focus on maritime domain awareness and resilient ports is a model for functional diplomacy that avoids great power rivalries.
Exam Points
The EU is the chief guest at India's Republic Day parade in 2026.
The U.S. boycotted the Johannesburg G-20 summit in 2025.
India's Operation Sagar Bandhu followed Cyclone Ditwah in Sri Lanka.
This article critiques the functioning of the Enforcement Directorate (ED) and the role of 'media trials' in high-profile cases. It highlights instances where the judiciary has called out the ED for exceeding its mandate and violating legal principles, such as conducting searches without credible information or a predicate offence. The article argues that the ED's sweeping powers under the Prevention of Money Laundering Act (PMLA), including the difficulty of obtaining bail, are increasingly being used as tools of political intimidation. It calls for urgent constitutional guardrails to prevent investigative authorities from becoming instruments of arbitrary state power.
The PMLA requires a 'predicate offence' (scheduled offence) that generates proceeds of crime before money laundering charges can be applied.
Section 50 of the PMLA allows the ED to summon individuals and record statements under oath, which can be used as evidence.
The 'reverse burden of proof' under PMLA makes it exceptionally difficult for accused individuals to secure bail compared to regular criminal law.
The article discusses the polarizing nature of illegal immigration in Indian politics, particularly following the Special Intensive Revision (SIR) of electoral rolls. It argues that while the Opposition often dismisses concerns about undocumented immigrants as xenophobic, national security concerns are legitimate and should not be ignored. The author suggests a 'centrist' approach that acknowledges the complexity of the issue, focusing on legal work authorizations and tech-driven regulation. Drawing parallels with global trends in Europe and the U.S., the piece notes that ignoring public anxiety over immigration can lead to the rise of populist, anti-immigration parties.
The Special Intensive Revision (SIR) omitted nearly 6.5 crore electors from draft rolls across nine States and three Union Territories.
The Immigration and Foreigners Bill, passed in June 2025, aims to regulate entry and stay using a tech-driven, time-bound approach.
Centrist politics must reconcile emotive issues like national identity with humanitarian concerns to prevent political polarization.
Exam Points
Immigration and Foreigners Bill, passed in June 2025.
Special Intensive Revision (SIR) of electoral rolls.
The Tamil Nadu government has introduced the Tamil Nadu Assured Pension Scheme (TAPS), a hybrid model combining features of the Old Pension Scheme (OPS) and the National Pension System (NPS). TAPS aims to address the growing demand for pension security while maintaining fiscal sustainability. Under TAPS, employees continue to contribute 10% of their salary (as in NPS), but are assured a monthly pension of 50% of their average pay from the last 12 months of service. This model seeks to provide the certainty of OPS without the massive fiscal burden that led to the shift to NPS in 2003.
TAPS provides an assured pension of 50% of the last drawn pay, similar to the OPS, but retains the contributory nature of the NPS.
The scheme includes a Dearness Allowance (DA) linked to inflation, ensuring the pension's value is maintained over time.
The government's contribution to TAPS will be around 14%, and the scheme is expected to be more fiscally sustainable than a full return to OPS.
Exam Points
Tamil Nadu Assured Pension Scheme (TAPS) launched in January 2026.
NPS was introduced for employees joining after April 1, 2003.
Andhra Pradesh introduced a similar model called the Guaranteed Pension Scheme (APGPS) in 2023.
The Himachal Pradesh Cabinet has approved an ordinance to levy a dedicated 'orphan and widow cess' on the sale of petrol and high-speed diesel within the state. The revenue generated from this cess will be used to fund welfare schemes for orphans and widows. The government stated that the cess would be 'non-burdensome' to consumers while ensuring adequate financial resources for social welfare. Additionally, the Cabinet approved a national policy on geothermal energy and designated the Directorate of Energy as the nodal agency for its implementation in the state.
The cess is aimed at creating a dedicated fund for the effective implementation of welfare schemes for vulnerable groups.
The Cabinet also focused on energy diversification by adopting a policy for geothermal energy exploration.
Four new laboratories will be established for nutritional profiling to strengthen the food testing ecosystem in the state.
Exam Points
Orphan and widow cess on fuel introduced in Himachal Pradesh.
Directorate of Energy named nodal agency for geothermal energy in the state.
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