Prime Minister Narendra Modi and U.S. President Donald Trump announced a significant trade deal following a telephonic conversation. The U.S. will reduce tariffs on "Made in India" products from a 50% penalty rate (imposed in August 2025) to 18%. In exchange, India has reportedly agreed to stop purchasing Russian oil and will work towards reducing its own tariffs and non-tariff barriers against U.S. products to zero. This move is expected to significantly boost Indian exports and reflects a positive turn in bilateral relations that had been under strain due to trade imbalances and geopolitical differences.
The deal reduces the reciprocal tariff on Indian goods from a previous high of 25% (or 50% penalty) to 18%.
India has committed to increasing the purchase of U.S. products with a target of $500 billion.
A major geopolitical shift involves India agreeing to stop buying Russian oil and potentially sourcing from the U.S. and Venezuela.
Exam Points
Reduced tariff rate: 18%.
Target for U.S. product purchases: $500 billion.
Previous penalty tariff imposed in August 2025: 50%.
The Supreme Court of India has directed the Central government to constitute a tribunal within one month to adjudicate the long-standing water-sharing dispute between Tamil Nadu and Karnataka over the Pennaiyar River. The Bench, led by Justice Vikram Nath, invoked Section 5 of the Inter-State River Water Disputes Act of 1956. Tamil Nadu had approached the court in 2018, challenging Karnataka's construction of dams and diversion structures, arguing that inter-state river water is a national asset and no single state can claim exclusive ownership. The court emphasized the need for a formal adjudicatory body.
The Centre must issue a notification for the tribunal's constitution within 30 days.
The dispute centers on Tamil Nadu's objection to Karnataka's unilateral utilization of Pennaiyar river waters through new structures.
The court's direction is based on the Inter-State River Water Disputes Act, 1956.
Exam Points
Inter-State River Water Disputes Act of 1956 (Section 5).
The Sixteenth Finance Commission (FC-16) has recommended maintaining the vertical devolution ratio—the States' share of Central taxes—at 41% for the 2026-31 period, despite States' demands for 50%. A significant change is the reworking of the 'tax effort' criterion into a broader 'contribution to GDP' measure, with its weight increased from 2.5% to 10%. While the Commission acknowledges the fiscal constraints of States, it has chosen a gradual approach to horizontal devolution to avoid abrupt shocks, resulting in only incremental gains for industrialized states like Tamil Nadu and Maharashtra while penalizing population growth.
Vertical devolution remains at 41%, disappointing states that sought a 50% share to increase fiscal space.
The 'contribution to GDP' criterion now carries a 10% weight to reward productive and efficient states.
Demographic performance weight has been reduced, reflecting a shift away from penalizing population growth.
On World Wetlands Day 2026, experts emphasized the urgent need to shift from project-based 'beautification' to ecological functionality in wetland management. Nearly 40% of India's wetlands have vanished in the last three decades, and 50% of the remainder show signs of degradation. The article advocates for a five-point strategy: securing wetland boundaries, treating wastewater before it enters wetlands, restoring feeder channels, treating wetlands as nature-based infrastructure for disaster risk reduction, and building institutional capacity for wetland managers. It highlights the importance of the Ramsar site designation and the National Plan for Conservation of Aquatic Ecosystems.
India has lost approximately 40% of its wetlands over the last 30 years due to encroachment and land conversion.
Wetlands should be managed as part of a basin or catchment system rather than isolated water bodies.
The 2017 Wetland Rules require strong notification and demarcation to prevent illegal activities and land use changes.
Exam Points
Percentage of Indian wetlands vanished in 30 years: 40%.
Number of Ramsar sites in India: 98.
Relevant regulation: Wetlands (Conservation and Management) Rules, 2017.
In a landmark judgment, the Supreme Court of India has encapsulated the right to menstrual health and hygiene within the fundamental right to life and dignity under Article 21 of the Constitution. The Court emphasized that autonomy for girl children requires access to functional toilets, menstrual products, and hygienic disposal mechanisms. Terming the lack of access as 'menstrual poverty,' the Bench directed States and Union Territories to ensure gender-segregated toilets in all schools. This ruling aims to address the gendered lack of equity and high dropout rates among adolescent girls in government and private schools.
Menstrual hygiene is now legally recognized as part of the Right to Life under Article 21.
The Court mandated that every school must have functional, gender-segregated toilets and adequate menstrual products.
NFHS-5 data shows that while hygienic methods usage rose to 77.3%, a quarter of eligible women still lack support.
Exam Points
Constitutional Article: Article 21.
NFHS-5 data: 77.3% of women (15-24 years) use hygienic methods.
The Economic Survey of India (2025-26) provides significant recognition of Tamil Nadu's macroeconomic performance. The state recorded a real growth of 11.19% in 2024-25, driven by a robust manufacturing sector which grew at 14.74%. Tamil Nadu contributes 15% of India’s manufacturing employment, the highest in the country. The state has also doubled its merchandise exports to $52.07 billion in 2024-25. Furthermore, the Survey highlights Tamil Nadu's leadership in green energy, specifically noting the V.O. Chidambaranar Port as one of three green hydrogen hubs under the National Green Hydrogen Mission.
Tamil Nadu is the second-largest state economy in India with a real growth rate of 11.19%.
The state leads in manufacturing employment (15%) and has a diversified industrial ecosystem in automobiles and electronics.
Tamil Nadu and Telangana together account for nearly 40% of India's services output.
The 16th Finance Commission has recommended a record allocation of ₹7.91 lakh crore for local governments for the 2026-31 period, with a significant shift towards Urban Local Governments (ULGs). The share of local government grants for ULGs has been increased to 45%, up from 36% in the previous commission. This move aims to provide first-mile infrastructure and services for India's rapidly growing towns and cities. Kerala received the highest increase in allocation (over 400%), while some states like Himachal Pradesh and Arunachal Pradesh saw declines in their local body funding.
Total local government allocation increased to ₹7.91 lakh crore from ₹4.36 lakh crore in the 15th FC.
The share of grants specifically for Urban Local Governments rose from 36% to 45%.
60% of grants to ULGs are 'tied,' meaning they must be used for basic services like sanitation and water supply.
Exam Points
Total local government allocation (16th FC): ₹7,91,493 crore.
Rural employment activists have criticized the Union Budget's allocation for rural job schemes, citing a lack of clarity in the transition from MGNREGS to the new Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G). While the government promised 125 days of employment, activists argue the ₹1.25 lakh crore allocation is insufficient. They claim that after clearing current dues of ₹15,000 crore, the remaining funds would only provide about 52 days of work for active households. There are also concerns regarding the lack of State-wise normative allocations and transparency in the new regime.
The government is transitioning from MGNREGS to a new scheme called VB-G RAM G.
The budget has earmarked ₹95,692.31 crore for VB-G RAM G and ₹30,000 crore for MGNREGS.
Activists claim the total outlay of ₹1.25 lakh crore is inadequate to fulfill the promise of 125 days of work.
Exam Points
New scheme name: VB-G RAM G.
Total allocation for rural employment: ₹1,25,692.31 crore.
The Indian Space Research Organisation (ISRO) has involved an external team to investigate the consecutive failures of the Polar Satellite Launch Vehicle (PSLV). The most recent mission, PSLV C-62, failed on January 12 during its third stage, resulting in the loss of 16 satellites. This follows a similar failure of PSLV C-61 in May 2025. Union Minister Jitendra Singh stated that the external appraisal is intended to build confidence and ensure the problem is rectified. ISRO is targeting June 2026 for the next launch and has a total of 18 launches scheduled for the year.
ISRO is using a third-party appraisal to investigate the causes of recent PSLV launch failures.
Both PSLV C-61 and C-62 failed during the ignition of the third stage.
The failure of C-62 resulted in the loss of the EOS-09 satellite and several private sector satellites.
Thousands of tribal farmers from Palghar and Nashik districts in Maharashtra have organized long marches to demand land rights, employment, and irrigation. The core of the protest is the implementation of the Forest Rights Act (FRA), 2006. Tribals claim that many individual land claims have been rejected or that titles are issued in the name of the entire village rather than individuals, making them ineligible for government schemes. They are also demanding the completion of pending recruitments under the PESA Act and the diversion of west-flowing rivers to drought-prone tribal areas.
The protests focus on the proper implementation of the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006.
Over 45% of claims under the FRA in Maharashtra have been rejected, according to data accessed by The Hindu.
Tribals are demanding that land titles be issued in individual names to facilitate access to institutional loans and government subsidies.
Exam Points
Relevant Acts: Forest Rights Act (FRA), 2006; PESA Act, 1996.
Rejection rate of FRA claims in Maharashtra: >45%.
Districts involved: Palghar and Nashik.
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