Current Affairs

Current Affairs — 5 June 2026

5 June 2026

Nicobar Port Project: Strategic Rationale Questioned Amid Environmental Concerns

The proposed International Container Transhipment Port (ICTP) at Galathea Bay, Great Nicobar, faces scrutiny over its "strategic" justification. Initially, the Public Investment Board (PIB) deemed it lacking strategic objectives in August 2024, but the Ministry of Defence later labeled it strategic in March 2026. This shift is questioned, especially as environmental impact reports remain undisclosed. Critics argue the ₹81,000-crore project, which includes an airport and tourism zone, is primarily commercial and that military presence could be enhanced without extensive ecological damage, raising concerns about transparency and environmental impact.

  • The Public Investment Board initially questioned the strategic objectives of the Great Nicobar Port project.
  • The Ministry of Defence later designated the project as strategic, despite earlier assessments.
  • Environmental impact reports for the ₹81,000-crore project have been withheld from public access.
Exam Points
  • Project: International Container Transhipment Port (ICTP) at Galathea Bay, Great Nicobar Island.
  • Estimated Cost: ₹81,000-crore.
  • Public Investment Board (PIB) assessment: Lacked strategic objectives (August 2024).
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Monsoon Arrives Late in Kerala Amid El Nino Concerns, Below-Normal Rainfall Predicted

The southwest monsoon commenced in Kerala three days late, missing its normal June 1 onset and the IMD's forecast. This delay coincides with a strengthening El Nino, which the World Meteorological Organisation predicts has an 80% chance of developing by July-August. The India Meteorological Department (IMD) has forecasted a below-normal monsoon, estimating 90% of the long-period average rainfall. A weak monsoon poses significant risks to India's predominantly rain-fed agricultural sector, potentially leading to tightened reservoir discharge and reduced groundwater recharge, impacting food security and rural livelihoods.

  • The southwest monsoon's onset in Kerala was delayed by three days compared to its normal date.
  • The delay is linked to concerns over a strengthening El Nino, with high probability for July-August.
  • The IMD has predicted a below-normal monsoon season, forecasting 90% of the long-period average rainfall.
Exam Points
  • Normal monsoon onset date in Kerala: June 1.
  • IMD's monsoon forecast: 90% of the long-period average (below-normal).
  • World Meteorological Organisation (WMO) El Nino probability: 80% for July and August.
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India's Trillion-Dollar Climate Finance Challenge: Bridging the Gap for Net-Zero Goals

India requires ₹162.5 trillion ($2.5 trillion) by 2030 for its Nationally Determined Contributions and $10.1 trillion by 2070 for net-zero emissions, highlighting a vast climate finance gap. Decarbonizing key sectors alone demands $467 billion by 2030. The article stresses the need for a robust financing strategy, including a climate-finance taxonomy to standardize investments and differentiated capital requirements by the RBI to incentivize green lending. Establishing State Climate Finance Facilities and scaling sovereign green bonds are crucial steps to mobilize capital and achieve India's ambitious climate targets.

  • India faces a massive climate finance requirement to meet its 2030 NDCs and 2070 net-zero targets.
  • A significant financing gap exists, particularly for decarbonizing critical industrial sectors.
  • A comprehensive climate-finance taxonomy is essential to standardize green investments and build investor confidence.
Exam Points
  • India's 2030 climate finance need: ₹162.5 trillion ($2.5 trillion).
  • India's 2070 net-zero finance need: $10.1 trillion.
  • Decarbonization cost for four sectors (steel, cement, power, road transport) by 2030: $467 billion.
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India Lacks Comprehensive Environmental Understanding Amid Mounting Crisis

India is grappling with a severe environmental crisis, marked by extreme weather, widespread pollution, and land degradation, yet lacks a unified understanding of its environmental state. The Ministry of Environment, Forest and Climate Change (MoEFCC) is underfunded and fragmented, hindering effective policymaking. The article proposes an Annual Environmental Survey of India (EnvSI), modeled after the Economic Survey, to provide independent, expert-led assessments. Such a survey would aggregate data, conduct audits, and issue actionable insights, crucial for preventing further degradation, achieving climate targets, and balancing economic growth with environmental conservation and social justice.

  • India is experiencing a significant environmental crisis, including extreme weather events and pollution.
  • The country lacks a comprehensive and unified understanding of its environmental status.
  • The Ministry of Environment, Forest and Climate Change (MoEFCC) is underfunded and fragmented.
Exam Points
  • Yale School of the Environment survey (2024-2025): 71% Indians experienced heat waves.
  • River monitoring: Nearly half of 870 stations showed alarming toxic heavy metal levels.
  • Land degradation: 29.7% of India's land is degraded (Desertification and Land Degradation Atlas).
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Mangroves Over Seawalls: Advocating Ecosystem-Based Adaptation for Coastal Resilience

India's 11,000-km coastline faces escalating climate threats, impacting 250 million people. Despite the proven efficacy of Ecosystem-based Adaptation (EbA) through natural buffers like mangroves, seagrasses, and coral reefs, "grey" infrastructure like seawalls dominates adaptation spending. EbA offers cost-effective protection, strengthens ecosystems, and supports livelihoods, as demonstrated by mangrove restoration in the Sundarbans. The article highlights that fragmented mandates and a preference for visible infrastructure hinder EbA's recognition and scaling within policy frameworks, urging a shift towards integrating EbA as a core climate and development strategy to leverage India's natural capital for resilience.

  • India's extensive coastline is highly vulnerable to climate change impacts, affecting a large population.
  • Ecosystem-based Adaptation (EbA) using natural systems like mangroves offers superior, cost-effective protection.
  • Current adaptation spending disproportionately favors "grey" infrastructure over EbA.
Exam Points
  • India's coastline length: 11,000-kilometre.
  • Coastal population affected: 250 million.
  • Coastal States' spending on hard protection (last decade): ₹2,641 crore.
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Unlocking Climate and Development Capital: A Framework for Multiple Returns

India faces a significant SDG financing gap, particularly in energy transition, infrastructure, and health, which are intrinsically linked to climate challenges. The article argues that investments in climate solutions, such as clean energy, yield multiple returns—carbon reduction, improved health, and enhanced productivity—which are often overlooked by current investment frameworks. This incomplete valuation leads to under-mobilization of capital. A new framework is proposed to measure and value both financial and social returns, ensuring capital is directed towards solutions that maximize overall impact. Technical assistance is highlighted as crucial for developing commercially viable project pipelines.

  • India's SDG financing gap is closely tied to climate challenges, especially in energy transition.
  • Climate investments offer multiple co-benefits, including health and economic productivity, beyond emissions reduction.
  • Current investment frameworks often fail to capture the full spectrum of these diverse returns.
Exam Points
  • Global SDG financing gap: Half of $4 trillion is in energy transition.
  • India's additional investment for SDGs: Around 6% of GDP annually.
  • Kolhapur foundry cluster: Accounts for ~5% of India's cast-iron exports.
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Supreme Court Draft Rules Prohibit AI Use for Judicial Outcomes, Ensure Human Oversight

The Supreme Court AI committee has proposed draft regulations prohibiting the use of artificial intelligence (AI) for determining judicial outcomes, sentencing, or profiling individuals. The rules mandate that AI systems must operate solely in an assistive capacity, under strict human judgment, and must not perpetuate biases based on various grounds like race or gender. While AI is permitted for administrative tasks such as case management and scheduling, its use for "risk scoring" or assessing witness credibility is barred. An "apex body" is proposed to oversee AI adoption in the judiciary, ensuring accessibility and preventing digital divides.

  • The Supreme Court's draft regulations prohibit AI from making judicial decisions or profiling individuals.
  • AI systems are to be used only as assistive tools, always under human oversight and judgment.
  • The rules explicitly forbid AI from perpetuating biases based on protected characteristics.
Exam Points
  • Committee: Supreme Court AI committee, chaired by Justice P.S. Narasimha.
  • Draft regulations title: 'Regulations for Use of Artificial Intelligence (AI) in Courts, 2026'.
  • Public comment deadline: June 20.
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India Plans to Scrap Capital Gains Tax on Foreign Investment in Government Bonds

India intends to eliminate capital gains tax on foreign portfolio investments in government securities to attract more foreign capital. This strategic move aims to bolster the rupee, which has depreciated over 5% this year due to high oil prices and foreign equity outflows. Currently, foreign investors face a 12.5% long-term capital gains tax on bonds held over 12 months, and a 20% withholding tax on interest earned in government bonds may also be removed. While not a definitive solution, this tax easing is expected to positively influence foreign inflows into the Indian bond market in the medium term.

  • India plans to remove capital gains tax for foreign investors in government securities.
  • The measure aims to attract foreign capital and support the Indian rupee.
  • Foreign investors currently pay 12.5% long-term capital gains tax on bonds.
Exam Points
  • Current long-term capital gains tax (foreign investors, bonds >12 months): 12.5%.
  • Current withholding tax on interest (government bonds): 20%.
  • Rupee depreciation (this year): Over 5%.
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India's Double Burden of Malnutrition Requires Evolved Public Health Strategies

India faces a "double burden of malnutrition," with both undernutrition and overnutrition prevalent, as highlighted by a Vellore study and NFHS-6 data. The Vellore study revealed that thinness and overweight issues emerge sharply between ages seven and nine, underscoring the early onset of weight-related problems. This necessitates a re-evaluation of public health strategies, moving beyond a singular focus on undernutrition to encompass comprehensive dietary and lifestyle interventions addressing both ends of the spectrum. A one-sided approach is deemed insufficient given the rising burden of metabolic diseases like diabetes and hypertension in India.

  • India is experiencing a "double burden of malnutrition," characterized by co-existing undernutrition and overnutrition.
  • A Vellore study indicates that weight-related issues, including thinness and overweight, begin early in childhood.
  • Maternal weight is identified as a significant factor contributing to a "trans-generational burden" of malnutrition.
Exam Points
  • NFHS-6 data: 30.7% of women aged 15-49 were overweight or obese (2023-24).
  • Vellore study: Found thinness and overweight rise sharply between ages seven and nine.
  • WHO definition of malnutrition: Includes undernutrition, micronutrient deficiencies, overweight, obesity, and diet-related NCDs.
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