Daily Current Affairs: 2 February 2026

Ministry of Finance (MoF) hikes defence Budget 15.3% to Rs 7.84 lakh crore for FY27

[Ministry of Finance (MoF)]

Key Updates:

• Total FY27 defence allocation set at Rs 7.84 lakh crore, up from Rs 6.81 lakh crore in FY26, marking a 15.3% rise.
• Revenue expenditure for defence services fixed at Rs 3.65 lakh crore.
• Capital outlay raised 21.8% to Rs 2.19 lakh crore against revised estimate of Rs 1.86 lakh crore.
• Defence pensions allocated Rs 1.71 lakh crore and civil defence spending Rs 28,554.61 crore.
• Basic customs duty exempted on components for manufacture of civilian, training and other aircraft.
• Basic customs duty waived on raw materials imported for maintenance, repair or overhaul by defence units.
• Indigenous defence production touched record Rs 1.54 lakh crore in FY 2024-25.
• Defence exports hit all-time high of Rs 23,622 crore in FY 2024-25.
• Domestic share in defence equipment now 65%, with Defence Public Sector Undertakings contributing 77% of output.
• Two Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu have attracted over Rs 9,145 crore investments.
• 788 industrial licences issued to 462 companies under liberalised FDI and Production-Linked Incentive (PLI) regime.
• Defence Acquisition Procedure (DAP) 2020 and Defence Procurement Manual (DPM) 2025 streamline capital acquisition.

Finance Minister Nirmala Sitharaman increases capital expenditure to ₹12.2 lakh crore for Union Budget 2026

Key Updates:

• Finance Minister Nirmala Sitharaman has proposed to increase capital expenditure (capex) to ₹12.2 lakh crore for Financial Year (FY) 2026–27.
• The proposed capex marks an increase from the ₹11.2 lakh crore earmarked for the current fiscal year.
• Public capital expenditure has risen from ₹2 lakh crore in 2014–15 to the current Budget Estimate of ₹11.2 lakh crore for 2025–26.
• Infrastructure development will focus on tier-2 and tier-3 cities with populations exceeding five lakh that have become growth centres.
• The Indian economy is projected to grow at 7.4% in the current financial year with inflation expected at approximately 2%.
• The fiscal deficit for the current year is estimated at 4.4% of the Gross Domestic Product (GDP).
• India recorded a GDP growth of 8.2% in the second quarter of FY26, following a 7.8% expansion in the April–June quarter.
• Economic growth rates for the previous two financial years were recorded at 6.5% and 9.2% respectively.

Ministry of Railways (MoR) Receives Rs 2.93 Lakh Crore Capex Allocation in Union Budget 2026-27

[Ministry of Railways (MoR)]

Key Updates:

• The Ministry of Railways (MoR) has been allocated a total capital expenditure (capex) of Rs 2,93,030 crore for the financial year 2026-27.
• The MoR received a total outlay of Rs 2,78,030 crore in the Union Budget 2026-27, marking the highest-ever allocation for the ministry.
• A total outlay of Rs 2,77,830 crore is provided for capital expenditure in Budget Estimates (BE) 2026-27, with an additional Rs 200 crore sourced from the Nirbhaya Fund.
• Finance Minister Nirmala Sitharaman proposed the development of seven high-speed rail corridors across the country.
• The seven proposed high-speed rail corridors are Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bangalore, Hyderabad-Chennai, Chennai-Bangalore, Delhi-Varanasi, and Varanasi-Siliguri.
• The key focus areas for the capital expenditure include the construction of new lines, gauge conversion, doubling, traffic facilities, and rolling stock.

Union Budget 2026–27 waives customs duty on 17 cancer drugs and cuts TCS on overseas remittances

Key Updates:

• Finance Minister Nirmala Sitharaman fully exempted basic customs duty on 17 cancer drugs and on medicines, drugs and food for special medical purposes related to seven rare diseases.
• Tax Collection at Source (TCS) on overseas tour packages reduced to 2% from the earlier 5–20% with no minimum amount.
• TCS on foreign remittances for education and medical treatment under Liberalised Remittance Scheme (LRS) cut to 2% from 5%.
• Customs duty on specified manufacturing parts of microwave ovens exempted.
• Customs duty on personal-use imports by international travellers reduced to 10% from 20%.
• Export realisation period for textile and leather exporters extended to one year.
• Basic customs duty raised on low-cost imported umbrellas, ATM/cash dispenser machines and parts, potassium hydroxide, film & broadcasting equipment for foreign crews, imported zoo animals and birds, ammonium phosphate/nitro-phosphate fertilisers and naphtha, coffee roasting/brewing/vending machines, and castor oil cake.
• Securities Transaction Tax (STT) on futures trading increased to 0.05% from 0.02% and on options premium and exercise to 0.15%.
• Tax Collection at Source (TCS) on sale of alcoholic liquor, minerals and scrap raised to 2% from 1%.
• National Calamity Contingent Duty (NCCD) on chewing tobacco and gutkha raised to 60% from 25% while effective duty incidence remains at 25% through notification.

Government of India Proposes 38% Increase in Ministry of Communications Outlay to Rs 73,990 Crore

Key Updates:

• The Government of India has proposed to increase the budget outlay for the Ministry of Communications to Rs 73,990 crore.
• Bharat Sanchar Nigam Limited (BSNL) has been allocated Rs 28,473 crore for capital infusion, spectrum costs, and network rollout.
• The total telecom allocation grew from a Revised Estimate (RE) of Rs 53,000 crore in the previous year to the current proposed Rs 73,990 crore.
• The Average Revenue Per User (ARPU) for BSNL increased by approximately 9%, rising from Rs 90 to Rs 99.
• The government has earmarked Rs 1,39,000 crore for the BharatNet rural broadband project.
• BSNL plans to utilise the Capital Expenditure (CAPEX) injection along with internal cash flows for its resurgence path.
• The budget for the Development of the North East Region (NER) increased by nearly 50%, from an RE of Rs 4,495 crore to Rs 6,800 crore.
• Development projects for the NER include the deployment of 4,000 e-buses and the establishment of five Buddhist circuits across six states.

Finance Minister (FM) Nirmala Sitharaman proposes ₹20,000 crore for CCUS and customs duty relief in Union Budget 2026-27

Key Updates:

• The Union Budget 2026-27 proposes an outlay of ₹20,000 crore over the next five years to support Carbon Capture, Utilisation and Storage (CCUS) technologies.
• The CCUS funding aims to scale up projects and improve technology readiness across five industrial sectors: power, steel, cement, refineries, and chemicals.
• The basic customs duty exemption on capital goods used for manufacturing lithium-ion cells is extended to cover energy storage systems.
• The existing customs duty exemption on the import of goods required for nuclear power projects is extended until the year 2035.
• The customs duty exemption for nuclear power is expanded to cover all nuclear power plants, irrespective of their capacity.
• A basic customs duty exemption is proposed on the import of sodium antimonate for use in the manufacture of solar glass.
• The Budget proposes a basic customs duty exemption on the import of capital goods required for processing critical minerals in India.
• The entire value of biogas will be excluded while calculating the central excise duty payable on biogas-blended Compressed Natural Gas (CNG).
• The Finance Minister (FM) proposed to restructure the Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) to improve efficiency.
• The mineral-rich states of Odisha, Kerala, Andhra Pradesh, and Tamil Nadu will be supported to establish dedicated Rare Earth Corridors for mining and processing.

Government of India (GoI) Implements New Excise Duty and Health Cess on Tobacco Products

Key Updates:

• The Government of India (GoI) has imposed an additional excise duty on cigarettes and tobacco products along with a health cess on pan masala effective from 1 February.
• The new tax framework replaces the previous structure of 28 per cent Goods and Services Tax (GST) plus compensation cess with a 40 per cent GST regime.
• The GST Council approved these levies following the repayment of a ₹2.69 lakh crore loan taken to offset state revenue losses, which was scheduled for completion by 31 January 2026.
• Non-filter cigarettes up to 65 mm in length attract an additional levy of approximately ₹2.05 per stick, while filter cigarettes of the same size are charged roughly ₹2.10 per stick.
• Cigarettes in the 65–70 mm category face an extra duty of around ₹3.6–4 per stick, while premium cigarettes measuring 70–75 mm are taxed at approximately ₹5.4 per stick.
• The highest levy of ₹8.50 per stick applies to non-standard or atypical cigarette designs, while retail prices for a pack of 10 sticks have increased by at least ₹22–25.
• Cigarettes measuring 76 mm in length are set to become costlier by ₹50–55 per pack, with brands in the 84 mm segment likely to be re-tagged at ₹220–225 from the previous ₹170.
• The All India Consumer Products Distributors Federation (AICPDF) reports that India has an estimated 8,000–9,000 cigarette and tobacco stockists.

Union Finance Minister Nirmala Sitharaman announces Orange Economy push with AVCG labs in 15,000 schools and 500 colleges.

Key Updates:

• Union Budget 2026–27 proposes support for Indian Institute of Creative Technologies Mumbai to set up AVCG content creator labs in 15,000 secondary schools and 500 colleges across India.
• India’s AVCG sector is projected to require 2 million professionals by 2030.
• Economic Survey 2025–26 terms creative industries as the Orange Economy, deriving value from ideas and cultural capital rather than physical goods.
• UNCTAD estimates show creative industries contribute between 0.5% and over 7% of GDP across countries.
• In 2019, live music in the United States generated over USD 130 billion in economic output and supported more than 900,000 jobs.
• UK music tourism contributed £6.6 billion, around 0.3% of GDP, in 2022.
• Concerts act as short-duration tourism multipliers, intensifying spending on accommodation, food, transport and city services.
• India’s concert economy remains nascent but is expanding due to a young population, rising discretionary spending, digital ticketing platforms and improving urban infrastructure.
• Event organisers in India currently require between 10 and 15 separate clearances for live entertainment events.
• Ministry of Information and Broadcasting is working towards a single-window mechanism for live entertainment permissions, including approvals from state governments.

Union Budget sets Rs 80,000 crore target for disinvestment and asset monetisation in FY 2026-27.

Key Updates:

• The Union Budget for FY 2026-27 has set a disinvestment and asset monetisation target of Rs 80,000 crore under miscellaneous capital receipts.
• The revised target for FY 2025-26 was around Rs 34,000 crore against the initially budgeted Rs 47,000 crore.
• Actual collections from disinvestment and asset monetisation in FY 2024-25 stood at Rs 20,214 crore.
• In FY 2025-26, disinvestment activity included a roughly Rs 5,000 crore divestment in Mazagon Dock Shipbuilders.
• The government combines proceeds from stake sales and asset monetisation under miscellaneous capital receipts since FY24.

Union Finance Ministry offers 20-year tax holiday to foreign cloud firms using Indian data centres

Key Updates:

• Union Finance Minister Nirmala Sitharaman in Budget 2026 proposed a 20-year tax holiday, valid up to 2047, for foreign companies providing cloud services to global customers from data centres located in India.
• Eligible foreign cloud firms must serve Indian customers only through an Indian reseller entity.
• The Budget proposes a 15% safe harbour on cost when data centre services are supplied by a related entity of the foreign cloud company.
• Google, Microsoft, and Amazon Web Services together committed about USD 40 billion in India data centre investments during 2025.
• Global hyperscalers and Indian conglomerates Reliance, Adani, Tata, and L&T plan to invest more than USD 70 billion in India’s data centre industry over the next five to seven years, raising total capacity from 1 GW to about 9 GW.
• India’s data consumption rose from 8 exabytes in FY17 to 229 exabytes in FY25, driven by OTT platforms, digital payments, social media, and ecommerce.

Union Finance Minister (FM) Nirmala Sitharaman presents Union Budget 2026

[State Bank of India (SBI)]

Key Updates:

• Union Finance Minister (FM) Nirmala Sitharaman presented the Union Budget 2026 on 1 February 2026.
• State Bank of India (SBI) opened a Global Trade Finance Centre (GTFC) in Kolkata to strengthen its trade and international banking operations.
• Indian Overseas Bank (IOB) Managing Director (MD) and Chief Executive Officer (CEO) Ajay Kumar Srivastava stated the budget provides a roadmap for Viksit Bharat by balancing industrial scaling with job creation.
• Heritage Foods Ltd Executive Director Brahmani Nara described the budget as a landmark step for strengthening the dairy and livestock ecosystem in India.
• Daimler India Commercial Vehicles (DICV) Chief Financial Officer (CFO) Alexander Schoen noted the budget places manufacturing, infrastructure, and supply-chain resilience at the centre of economic policy.
• The Indian space sector is exploring derived demand for products and services from the defence sector following the FY27 budget proposals.

Union Budget 2026–27 announces India Semiconductor Mission (ISM) 2.0 and multiple sector-specific manufacturing schemes

[India Semiconductor Mission (ISM)]

Key Updates:

• India Semiconductor Mission (ISM) 2.0 launched to strengthen chip manufacturing and ecosystem development.
• Electronics Components Manufacturing Scheme announced to deepen local value addition.
• Biopharma SHAKTI scheme targets pharmaceutical and biotechnology capabilities.
• Three dedicated chemical parks planned to expand domestic chemical production.
• Scheme for rare earth permanent magnets covers research, mining, processing and manufacturing.
• Container manufacturing scheme and initiatives for construction and infrastructure equipment announced.
• Integrated programme for textiles and dedicated push for affordable sports goods manufacturing introduced.
• Revival of 200 legacy industrial clusters and setting up of hi-tech tool rooms in CPSEs planned.
• Five-year income tax exemptions for non-residents supplying capital goods to toll manufacturers in bonded zones.
• Deferred duty payments for trusted manufacturers and expanded duty-free imports for export-oriented sectors such as seafood, footwear, textiles and electronics.

Khelo India Mission: 10-year push with ₹10,000 cr SME growth fund

Key Updates:

• Finance Minister Nirmala Sitharaman announced the Khelo India Mission will run for the next decade.
• A dedicated Rs. 10,000 crores SME growth fund is proposed to incentivise sports equipment manufacturing startups.
• The initiative brings sports goods manufacturing under the Make in India programme.

Union Budget 2026-27: Health Sector Allocation and New Regional Medical Hubs Scheme

Key Updates:

• The Ministry of Health and Family Welfare (MoHFW) has been allocated ₹1,06,530.42 crore for the 2026–27 fiscal year, marking a 10 per cent increase over the previous year.
• The government announced a new scheme to establish five regional medical hubs in partnership with the private sector to function as integrated healthcare, education, and research complexes.
• A dedicated allocation of ₹1,000 crore has been made for Allied Healthcare Professionals (AHPs) to add 100,000 professionals over the next five years across 10 disciplines, including Optometry, Radiology, Anaesthesia, OT technology, Applied Psychology, and Behavioural Health.
• The allocation for the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) has been increased to ₹9,500 crore from the previous ₹8,995 crore.
• Funding for the National Health Mission (NHM) has been raised to ₹39,390 crore for the 2026–27 period, up from ₹37,100.07 crore.
• The government plans to train 1.5 lakh caregivers in the coming year for geriatric and allied care services, covering skills such as wellness, yoga, and the operation of medical devices.
• The All India Institute of Medical Sciences (AIIMS), New Delhi, received an increased allocation of ₹5,500.92 crore.
• The Indian Council of Medical Research (ICMR) has been allotted ₹4,821.21 crore, reflecting an increase of approximately 10 per cent.
• A second National Institute of Mental Health and Neurosciences (NIMHANS 2) is planned for North India to prioritise mental health.
• The National Digital Health Mission (NDHM) has been earmarked ₹350 crore, while the National Tele Mental Health Programme allocation rose to ₹51 crore.

Income Tax Act, 2025 to replace 1961 Act from 1 April 2026

Key Updates:

• Finance Minister Nirmala Sitharaman announced the Income Tax Act, 2025 will come into force from 1 April 2026.
• The new Act is revenue-neutral with no changes to existing tax rates or slabs.
• The legislation cuts overall text volume and number of sections by nearly 50% compared with the 1961 Act.
• A single 'tax year' concept replaces the distinction between 'previous year' and 'assessment year'.
• Taxpayers can claim TDS refunds even if returns are filed after the due date without penal charges.
• The deadline for revising returns has been extended from 31 December to 31 March.
• A six-month foreign asset disclosure window is offered to small taxpayers like students, tech professionals and NRIs for income or assets below a specified threshold.
• TCS reduced to 2% on overseas tour packages and on remittances for education and medical purposes under the Liberalised Remittance Scheme.
• For property transactions involving non-residents, TDS can be deducted using the buyer’s PAN-based challan instead of requiring a TAN.

Union Budget 2026-27: Focus on Manufacturing, MSMEs, and Fiscal Consolidation

Key Updates:

• Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27, targeting an economic growth of approximately 7% with a focus on the goal of Viksit Bharat.
• The government announced the India Semiconductor Mission (ISM) 2.0 and the Electronics Components Manufacturing Scheme to strengthen domestic high-value manufacturing.
• New sector-specific initiatives include Biopharma SHAKTI for biotechnology, three dedicated chemical parks, and a scheme for rare earth permanent magnets.
• The budget proposed the revival of 200 legacy industrial clusters and the establishment of hi-tech tool rooms in Central Public Sector Enterprises (CPSEs).
• For Micro, Small and Medium Enterprises (MSMEs), the government announced a ₹10,000 crore SME Growth Fund and a ₹2,000 crore top-up to the Self-Reliant India (SRI) Fund.
• The Trade Receivables Discounting System (TReDS) will be mandatory for all CPSE purchases from MSMEs and will be linked with the Government e-Marketplace (GeM).
• The existing ₹10 lakh per consignment value cap on courier exports for small firms has been removed to encourage international trade.
• The government will support states to set up five hubs for medical value tourism and establish three new All India Institutes of Ayurveda (AIIA).
• A new National Institute of Design (NID) will be established in eastern India, and AVGC content creator labs will be set up in 15,000 secondary schools and 500 colleges.
• The Bharat-VISTAAR initiative will use Artificial Intelligence (AI) to integrate AgriStack portals with Indian Council of Agricultural Research (ICAR) practices.
• Infrastructure projects include 20 new National Waterways and a Dedicated Freight Corridor (DFC) connecting Dankuni in the east to Surat in the west.
• The government allocated ₹2 lakh crore to states under the Scheme for Special Assistance to States for Capital Investment (SASCI).
• The fiscal deficit for 2026-27 is estimated at 4.3% of Gross Domestic Product (GDP), with a target to bring the debt-to-GDP ratio to 50% by 2030.
• The budget provided ₹1.4 lakh crore as Finance Commission grants to states.

Budget 2026 Kartavya framework sets three growth, inclusion and reform agendas

Key Updates:

• Finance Minister Nirmala Sitharaman announced a three-pronged Kartavya framework in Union Budget 2026 to guide policy action.
• First Kartavya is to accelerate and sustain economic growth by enhancing productivity and competitiveness and building resilience to volatile global dynamics.
• Second Kartavya focuses on people-centric development by fulfilling aspirations and building capacity, making citizens strong partners in India’s prosperity.
• Third Kartavya aims to ensure inclusive access to growth opportunities so that every family, community, region and sector can meaningfully participate.
• Budget 2026 was prepared at Kartavya Bhavan, drawing inspiration from these three core Kartavya to strengthen India’s economic and social foundations.

Rare Earth Corridors Scheme: Government support for mining, processing and manufacturing of critical minerals in coastal states

Key Updates:

• Finance Minister Nirmala Sitharaman announced government backing for rare earth corridors in Odisha, Kerala, Andhra Pradesh and Tamil Nadu in Budget 2026 on February 1.
• The corridors will integrate mining, processing, research and manufacturing of critical minerals.
• Beach sand deposits in these coastal states contain 13.15 million tonne monazite with 7.23 million tonne in-situ rare earth elements oxide and 1.18 million tonne thorium oxide as on January 29, 2026, according to Department of Atomic Energy data.
• A scheme for rare earth permanent magnets launched in November 2025 provides an early framework for downstream manufacturing.

SHE Marts: Community-owned retail outlets for women SHG entrepreneurs announced in Budget 2026

Key Updates:

• Finance Minister Nirmala Sitharaman announced setting up of community-owned retail outlets named 'Self Help Entrepreneur - SHE Marts' for women SHG members.
• SHE Marts will function within cluster-level federations and be supported through enhanced and innovative finance instruments.
• The initiative builds on the Lakhpati Didi scheme, which has enabled over two crore women SHG members to reach an annual household income of ₹1 lakh.
• The Rural Development Ministry (RD Ministry) targets three crore women SHG members achieving ₹1 lakh annual income by 2027.

Bharat Vistar: Multilingual AI Tool Proposed in Union Budget 2026-27

Key Updates:

• Finance Minister (FM) Nirmala Sitharaman announced the launch of Bharat Vistar in the Union Budget 2026-27.
• Bharat Vistar is a multilingual Artificial Intelligence (AI) tool designed to integrate AgriStack portals and Indian Council of Agricultural Research (ICAR) practices with advanced AI systems.
• The platform aims to boost farm productivity and deliver customised advisory support to reduce risks for farmers.
• The FM proposed backing high-value crops to raise farm incomes.
• The government proposed a credit-linked subsidy programme for animal husbandry to spur rural jobs.
• The budget includes plans for the modernisation of livestock enterprises and the creation of integrated value chains for dairy and poultry sectors.
• The initiative encourages the formation of livestock Farmer Producer Organisations (FPOs).

Union Budget 2026-27 announces second national mental health institute and 50% expansion of trauma care capacity in district hospitals

Key Updates:

• Union Budget 2026-27 announced establishment of India’s second national mental health institute, NIMHANS-2, to address absence of national mental healthcare institutes in north India.
• Finance minister Nirmala Sitharaman stated existing mental health institutes in Ranchi and Tezpur will be upgraded as regional apex centres.
• Emergency and trauma care capacity in district hospitals to be expanded by 50% through new Emergency and Trauma Care Centres.
• Economic Survey 2025-26 presented on January 29, 2026, identified mental health as a major public health concern, highlighting high prevalence of social media addiction among 15-24 age group.

Karnataka Hate Speech and Hate Crime (Prevention) Bill, 2025 withheld by Governor

[Karnataka]

Key Updates:

• Karnataka Governor Thawar Chand Gehlot withheld assent to The Karnataka Hate Speech and Hate Crime (Prevention) Bill, 2025 and reserved it for the President’s consideration.
• The Governor’s communication cited vague definition of hate speech, overlap with existing laws, and risk of misuse for political malice.
• The Bill reclassifies non-cognisable and bailable offences as cognisable and non-bailable for individuals and organisations.
• Lok Bhavan noted the Bill could grant authorities arbitrary power to prohibit speech or events likely to cause hatred.
• Governor observed the Bill was passed without meaningful consultation with civil society, media bodies, digital rights groups or constitutional experts.

Union Budget 2026-27 allocates Rs 1,102 crore for ministers' salaries, entertainment of state guests, and ex-governors.

Key Updates:

• Union Budget 2026-27 allocates Rs 1,102 crore for expenses of Council of Ministers, Cabinet Secretariat, Prime Minister's Office (PMO), and hospitality and entertainment of state guests.
• Rs 620 crore allotted for expenses of council of ministers in 2026-27, up from Rs 483.54 crore in 2025-26.
• Rs 256.19 crore allocated to National Security Council Secretariat for 2026-27, against Rs 279.74 crore in 2025-26.
• Rs 65 crore allotted to Office of Principal Scientific Advisor for 2026-27, against Rs 61.32 crore in 2025-26.
• Cabinet Secretariat receives Rs 80 crore in 2026-27, against Rs 78 crore in 2025-26.
• Prime Minister's Office (PMO) allocated Rs 73.52 crore for 2026-27, against Rs 68 crore in 2025-26.
• Rs 5.76 crore allotted for hospitality and entertainment expenses in 2026-27, down from Rs 6.20 crore in 2025-26.
• Rs 1.53 crore allocated for secretariat assistance to former governors in 2026-27, against Rs 1.40 crore in 2025-26.

VB-G RAM G Scheme Launched with ₹95,692.31 Crore Outlay in Budget 2026

Key Updates:

• The Centre has allocated ₹95,692.31 crore for the rollout of the Viksit Bharat-Guarantee for Rozgar Aajeevika Mission (Grameen) (VB-G RAM G).
• The VB-G RAM G scheme promises 125 days of work in a year and is set to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
• An allocation of ₹30,000 crore has been made for MGNREGA, which will continue until the new scheme is implemented and pending works are completed.
• The total expenditure for VB-G RAM G is expected to reach ₹1,51,000 crore when including contributions earmarked by state governments.
• The Department of Rural Development has received a total allocation of ₹1,94,368.81 crore, marking an increase of approximately 3.5 per cent compared to the previous year.
• The Pradhan Mantri Awaas Yojana-Gramin (PMAY-G) has been earmarked ₹54,916.70 crore for the 2026-27 fiscal year.
• The Pradhan Mantri Gram Sadak Yojana (PMGSY) has been allocated ₹19,000 crore, while the Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) received ₹19,200 crore.
• Based on the recommendations of the 16th Finance Commission, panchayats will receive an additional ₹55,990 crore.
• The Department of Land Resources has been allocated ₹2,654.33 crore for the 2026-27 period.

Union Budget 2026-27: New Initiatives for Livestock, Fisheries, and High-Value Agriculture

Key Updates:

• Finance Minister (FM) Nirmala Sitharaman announced a loan-linked capital subsidy scheme to increase the availability of veterinary professionals by more than 20,000.
• The veterinary scheme will support the establishment of private colleges, veterinary hospitals, diagnostic laboratories, and breeding facilities.
• The government will undertake the integrated development of 500 reservoirs and Amrit Sarovars to strengthen the fisheries value chain.
• Fisheries development will be enabled through market linkages involving startups, women-led groups, and Fish Farmers Producer Organisations (FFPOs).
• A credit-linked subsidy programme will be launched for animal husbandry entrepreneurship development and the modernisation of livestock enterprises.
• The Coconut Promotion Scheme aims to replace old and non-productive trees with new varieties in major coconut-growing states.
• A dedicated programme for Indian cashew and cocoa aims to achieve self-reliance and transform them into premium global brands by 2030.
• The government will partner with states to promote sandalwood cultivation and post-harvest processing to restore the Indian sandalwood ecosystem.
• A dedicated programme for hilly regions will support the rejuvenation of old orchards and high-density cultivation of walnuts, almonds, and pine nuts.

Budget 2026–27 Mega Infra Push: Seven High-Speed Rail Corridors, City Economic Regions and Rs 10,000 Cr SME Growth Fund

Key Updates:

• Capital expenditure for 2026–27 raised to Rs 12.2 lakh crore.
• Seven new high-speed rail corridors announced: Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi and Varanasi-Siliguri.
• City Economic Regions to get Rs 5,000 crore per region over five years.
• New Dedicated Freight Corridor to link Dankuni in the East with Surat in the West.
• 20 National Waterways to be operationalised in five years, starting with NW-5 in Odisha connecting Talcher, Angul, Kalinga Nagar to Paradeep and Dhamra ports.
• Infrastructure Risk Guarantee Fund to provide partial credit guarantees to lenders for private developers.
• Rs 10,000 crore SME Growth Fund launched to incentivise small and medium enterprises based on select criteria.
• Self-Reliant India Fund topped up with Rs 2,000 crore to support micro enterprises.
• Three dedicated Chemical Parks to be established with central support to States.
• Rare Earth Corridors to be set up in Odisha, Kerala, Andhra Pradesh and Tamil Nadu for mining, processing, research and manufacturing.
• Mega Textile Parks to be developed in challenge mode, including focus on technical textiles.
• Ship repair ecosystem for inland waterways to be set up at Varanasi and Patna.
• Coastal Cargo Promotion Scheme to raise share of inland waterways and coastal shipping from 6 % to 12 % by 2047.
• Seaplane Viability Gap Funding Scheme introduced to support seaplane operations.

Union Budget 2026 allocates ₹1.63 lakh crore for high-value agriculture and allied sectors

Key Updates:

• Finance Minister Nirmala Sitharaman allocated ₹1,62,671 crore to the agriculture sector in Union Budget 2026-27, a 7% rise from 2025-26’s revised estimate of ₹1,51,853 crore.
• The government will support high-value crops such as coconut, sandalwood, cocoa, cashew, agarwood, walnut, almond and pine nut under dedicated programmes for rejuvenating old orchards and expanding high-density cultivation.
• A new coconut promotion scheme targets replacing non-productive trees with improved varieties in major coconut-growing states, benefiting around 30 million people including nearly 10 million farmers.
• A dedicated programme for Indian cashew and cocoa aims to make India self-reliant in raw material production and processing and to establish these products as premium global brands by 2030.
• Sandalwood cultivation will receive focused support through partnerships with state governments to promote scientific farming and post-harvest processing.
• The Budget proposes integrated development of 500 reservoirs and water bodies to strengthen the fisheries value chain, with emphasis on market linkages and support to startups, women-led groups and fish farmer producer organisations.
• A credit-linked subsidy programme will be introduced for animal husbandry to promote entrepreneurship, modernise livestock enterprises and scale up integrated value chains across dairy, poultry and livestock sectors.
• The government announced the launch of Bharat Vistar, a multilingual AI tool integrating AgriStack portals and Indian Council of Agricultural Research (ICAR) practices to deliver customised advisory support and boost farm productivity.

University Townships and Girls' Hostels: Five educational zones and district-level accommodation announced

Key Updates:

• Union Finance Minister (FM) Nirmala Sitharaman announced the establishment of five university townships along large industrial and logistic corridors in the Union Budget 2026-27.
• The townships will physically integrate universities, colleges, research centres, skill centres, and residential complexes into a single ecosystem.
• The government will assist states via an obstacle road to develop these educational zones to minimize fragmentation between academic study and practical employment.
• The Budget proposes the introduction of girls' hostels in all districts of the country to be financed through the Viability Gap Fund (VGF).
• The township programme is aligned with the National Education Policy 2020 (NEP 2020) objectives of multidisciplinary learning, skill development, and gender inclusion.
• These zones are intended to improve local economies and build innovation clusters by co-locating industries with higher education and research institutions.
• The government has set the total capital expenditure target for the Financial Year 2026-27 (FY27) at ₹12.2 lakh crore.

Union Budget 2026: Centre Announces Divyangjan Kaushal Yojana and Divyang Sahara Yojana

Key Updates:

• Finance Minister Nirmala Sitharaman proposed supporting the Artificial Limbs Manufacturing Corporation of India (ALIMCO) to scale up the production of assistive devices.
• The Divyangjan Kaushal Yojana aims to promote artificial limb manufacturing through Artificial Intelligence (AI) interventions.
• Under the Divyangjan Kaushal Yojana, differently-abled individuals will receive industry-relevant training and access to customised assistive products.
• The Divyang Sahara Yojana will support ALIMCO in increasing production and investing in AI integration and Research and Development (R&D).
• The government plans to strengthen PM Divyasha Kendras and establish Assistive Technology Marts to provide easy access to assistive devices.

Union Budget 2026–27: Basic Customs Duty Removed on 17 Cancer Drugs and Rare Disease Medicines

Key Updates:

• Finance Minister Nirmala Sitharaman announced the complete removal of basic customs duty on 17 cancer-related drugs and medicines in the Union Budget 2026–27.
• Customs duty relief was extended to seven additional rare diseases, exempting personal imports of drugs, medicines, and foods for special medical needs.
• The exemption aims to reduce the financial burden on patients relying on imported oncology medicines for complex and advanced treatments.
• The measure is intended to lower out-of-pocket expenditure for patients, particularly those lacking comprehensive health insurance coverage.
• The Union Budget 2026–27 also provided a 69% increase in funding for the Intelligence Bureau (IB) to strengthen internal security.

UMEED Portal gets Survey and Waqf Property Lease Modules for digital Waqf governance

Key Updates:

• Ministry of Minority Affairs (MoMA) launched Survey Module and Waqf Property Lease Module on UMEED Central Portal.
• Dr. Chandra Shekhar Kumar, Secretary of MoMA, inaugurated the modules in New Delhi.
• Survey Module enables systematic digital recording and updating of Waqf property details.
• Waqf Property Lease Management Module provides end-to-end monitoring of lease periods and amounts.
• Initial UMEED portal was launched by Union Minister Kiren Rijiju in June 2025 under the 1995 Waqf Act.
• Portal features geo-tagging, GIS mapping integration, and online grievance redressal.

United Arab Emirates and United Nations World Food Programme (WFP) sign US$20 million agreement for Sudan

[United Arab Emirates, United Nations World Food Programme (WFP), Sudan]

Key Updates:

• The United Arab Emirates (UAE) Aid Agency signed a US$20 million cooperation agreement with the United Nations World Food Programme (WFP) to provide urgent food assistance to Sudan.
• The grant is directed towards emergency response efforts for conflict-affected communities and displaced populations within Sudan and neighbouring host countries, including Chad, South Sudan, Uganda, and Ethiopia.
• The agreement was signed by Rashid Salem Al Shamsi, Executive Director of Logistics Support at the UAE Aid Agency, and Bashar Al Hammami, Head of the WFP Partnership Office in the UAE.
• The UAE provided a total of US$4.24 billion in assistance to Sudan between 2015 and 2025.
• Between 2023 and 2025, following the outbreak of the civil war, the UAE delivered US$784 million in humanitarian aid to the region.

India slashes Chabahar Port aid to zero in Union Budget 2026-27

Key Updates:

• Union Budget 2026-27 allocated ₹0 to Iran’s Chabahar Port, down from ₹400 crore in FY 2024-25 and ₹100 crore initially in FY 2025-26.
• US sanctions on Iran and a potential 25% tariff warning from the Trump administration influenced the funding pause.
• India holds a six-month US exemption for Chabahar Port participation ending 26 April 2026.
• Bhutan remains the largest aid recipient at ₹2,288 crore in Budget 2026-27.
• Bangladesh’s allocation dropped to ₹60 crore in Budget 2026-27 after being revised to ₹34 crore in FY 2025-26.
• Maldives received ₹550 crore, Sri Lanka ₹400 crore, Nepal ₹800 crore, Myanmar ₹300 crore, Afghanistan ₹150 crore, Mongolia ₹25 crore, African countries ₹225 crore, Mauritius ₹550 crore, and Seychelles ₹19 crore under Aid to Countries in Budget 2026-27.
• Total Aid to Countries outlay for FY 2026-27 is ₹5,686 crore, about 4% higher than FY 2025-26 Budget Estimates of ₹5,483 crore.

Census 2026 boosts Home Ministry budget; Intelligence Bureau allocation jumps 74%

[Intelligence Bureau]

Key Updates:

• The Union government allocated ₹5,762 crore for Census 2026 set to begin on 1 April.
• The overall internal security budget rose by 9.5% to ₹2.55 lakh crore.
• Central police forces CRPF, BSF, ITBP and CISF will receive the bulk of the funds.
• Intelligence Bureau (IB) allocation surged 74% from ₹3,893.35 crore to ₹6,782.43 crore.

India to host first-ever International Big Cat Summit in 2026

Key Updates:

• India will organise the first-ever international summit on big cats in 2026, announced Union Finance Minister Nirmala Sitharaman on 1 February 2026 while presenting the Union Budget 2026.
• The summit will be organised by the International Big Cat Alliance (IBCA) and will see participation from Heads of States and ministers from 95 range countries.
• IBCA was launched by Prime Minister Narendra Modi on 9 April 2023 and officially came into force on 23 January 2025.
• IBCA is now a treaty-based inter-governmental international organisation and international legal entity.

World Bank Group and India launch Country Partnership Framework with USD 8-10 billion annual financing

[World Bank Group]

Key Updates:

• The World Bank Group (WBG) and India announced a new Country Partnership Framework (CPF) envisaging USD 8-10 billion in annual financing over the next five years.
• The CPF is aligned with India's Viksit Bharat vision to become a developed economy by 2047 and was discussed between Finance Minister Nirmala Sitharaman and WBG President Ajay Banga.
• The partnership prioritises private sector-led job creation to accommodate the approximately 12 million young people entering India's labour market each year.
• The strategy focuses on five key sectors for job creation: infrastructure and energy, agribusiness, health care, tourism, and value-added manufacturing.
• The framework targets four strategic outcomes: boosting rural prosperity, supporting urban transformation, investing in energy security and core infrastructure, and strengthening resilience.
• India is the largest client of the WBG, with International Bank for Reconstruction and Development (IBRD) commitments of USD 20 billion across 79 projects.
• The International Finance Corporation (IFC) holds commitments of USD 16.72 billion across 174 projects in India.
• The Multilateral Investment Guarantee Agency (MIGA) has provided USD 618 million in guarantees for Indian projects.

India Energy Week 2026 to be held in Goa from 27–30 January

[Goa]

Key Updates:

• India Energy Week (IEW) 2026 will be held in Goa from 27 to 30 January 2026.
• The event is organised under the patronage of the Ministry of Petroleum and Natural Gas and jointly hosted by the Federation of Indian Petroleum Industry (FIPI) and dmg events.
• Over 120 countries are expected to participate in IEW 2026.
• The previous edition saw 68,000 attendees, 570 exhibitors and 5,400 conference delegates.
• India is projected to account for more than 23 per cent of global incremental energy demand by 2050, according to the International Energy Agency’s World Energy Outlook 2025.
• IEW 2026 will showcase recent reforms under the Oilfields (Regulation and Development) Act, 2025 and the Petroleum and Natural Gas Rules, 2025.
• Clean energy initiatives such as India’s ethanol blending programme, biofuels, green hydrogen and sustainable fuels will be major focus areas.

Indian Institute of Astrophysics (IIA) to implement three telescopes and one planetarium projects

[Indian Institute of Astrophysics (IIA)]

Key Updates:

• Finance minister Nirmala Sitharaman announced plans to establish and upgrade four major astronomy facilities.
• The projects include the National Large Solar Telescope (NLST), the National Large Optical-Infrared Telescope (NLOT), an upgrade to the Himalayan Chandra Telescope, and the Cosmos-2 planetarium.
• Indian Institute of Astrophysics (IIA) director Prof Annapurni Subramaniam confirmed that IIA will implement all projects from its Bengaluru headquarters.
• The NLST will be located near Pangong Lake in Ladakh and will study the Sun’s magnetic fields and solar flares.
• The NLOT will be a 10-12 metre optical and infrared telescope planned for the Hanle region of Ladakh.
• The Himalayan Chandra Telescope, operational since 2000 in Hanle, will receive an upgrade under the Budget proposal.
• Cosmos-2, a planetarium and education centre, will be built in Amaravati, Andhra Pradesh, with digital projection and interactive exhibits.
• IIA has signed an MoU with the Andhra Pradesh government for implementing Cosmos-2.
• IIA is completing Cosmos-1, an 8K resolution LED dome planetarium and research training centre in Mysuru, Karnataka.

SpaceX to Launch Falcon 9 with 25 Starlink Satellites from California

[SpaceX, California]

Key Updates:

• SpaceX is scheduled to launch a Falcon 9 rocket carrying 25 Starlink satellites into low Earth orbit from Space Launch Complex 4 East at Vandenberg Space Force Base, California.
• According to Indian Standard Time (IST), the launch window is scheduled from 20:47 on February 2, 2026, to 00:47 on February 3, 2026.
• The mission will utilise a first-stage booster that has already flown 30 times, marking its 31st flight as part of the company’s reusability programme.
• Following stage separation, the first stage is planned to perform a controlled landing on the Pacific Ocean-based droneship named Of Course I Still Love You.
• The Falcon 9 is a two-stage reusable rocket whose first stage is propelled by nine Merlin engines using liquid oxygen and rocket-grade paraffin as fuel.

NASA validates first Mars rover drives planned entirely by generative AI

[National Aeronautics and Space Administration (NASA), United States]

Key Updates:

• NASA confirmed that the Perseverance rover completed drives on 8 and 10 December 2025 planned entirely by generative AI.
• The AI analysed high-resolution orbital imagery to autonomously map a 246-metre path through Jezero Crater.
• Engineers at the Jet Propulsion Laboratory (JPL) validated the AI’s logic using a digital twin before transmitting commands across 225 million kilometres of space.
• The success provides a blueprint for NASA’s Artemis programme to use AI for split-second decisions on the Moon and Mars when Earth is out of reach.

Post Graduate Institute of Medical Education and Research (PGIMER) study finds fat-based liquid reduces Celphos poisoning mortality

[Post Graduate Institute of Medical Education and Research (PGIMER)]

Key Updates:

• A study led by the Post Graduate Institute of Medical Education and Research (PGIMER) has identified Intravenous Lipid Emulsion (ILE) as a treatment that can reduce the death rate of aluminum phosphide (Celphos) poisoning by 40%.
• The research, published in the European Review for Medical and Pharmacological Sciences, involved a randomised pilot clinical trial with 98 adult patients.
• Aluminum phosphide is a grain fumigant that releases lethal phosphine gas upon ingestion and currently carries a 70% mortality rate with no known specific antidote.
• The ILE treatment acts as a lipid sink, functioning like a sponge to soak up fat-soluble toxins in the bloodstream before they prevent cells from using oxygen.
• The trial results showed that the mortality rate dropped from 62% in the standard care group to 22.9% in the group receiving the lipid emulsion.
• In critical cases where patients were in shock, the survival rate rose from 0% in standard care to 50% in the lipid group.
• For victims who consumed highly toxic fresh tablets, the survival rate reached 71.4% with ILE compared to 0% under standard care.
• Survival for patients with heart muscle damage increased from 3.1% to 64.3% with the addition of the lipid emulsion.
• The treatment uses a 20% lipid emulsion, which is a standard, cost-effective medical product that can be administered by physicians at primary care centres.

Union Budget 2026 allocates Rs 20,000 crore for CCUS to decarbonise hard-to-abate sectors

Key Updates:

• The Union Budget 2026 earmarks Rs 20,000 crore over five years for carbon capture utilisation and storage (CCUS) targeting power, steel, cement, refinery and chemicals sectors.
• The scheme will also support emissions reduction in iron, chemicals, coal gasification and green hydrogen applications.
• India’s annual carbon dioxide emissions are about 2.6 gigatonne per annum (gtpa), making it the third largest emitter after China and the US.
• The NITI Aayog and MN Dastur & Co 2022 joint report states India needs a sustainable solution for sectors contributing 70 % of emissions.
• The programme may be implemented in phases with the first phase spanning six years and some sub-schemes eligible for 100 % government funding.
• Semi-commercial CCUS projects may be fully funded by the government while laboratory-scale projects could receive partial support.

Dr Jitendra Singh inaugurates ₹32 crore CSIR–National Institute of Oceanography (CSIR-NIO) Shore-Based Regional Centre at Visakhapatnam.

[Council of Scientific and Industrial Research (CSIR), CSIR–National Institute of Oceanography (CSIR-NIO)]

Key Updates:

• The CSIR–National Institute of Oceanography (CSIR-NIO) Shore-Based Regional Centre was inaugurated by Union Minister Dr Jitendra Singh at Visakhapatnam.
• The facility cost ₹32 crore and is located on 3.25 acres of a 4-acre campus at Yendada Village, Rushikonda.
• Construction began in November 2024 and was completed by December 2025, executed by the Central Public Works Department (CPWD).
• The built-up area is 4,550 square metres in a G+1 configuration.
• Andhra Pradesh’s coastline exceeds 1,000 km, forming part of India’s nearly 11,000–12,000 km coastline.
• The Eastern Coastal Margin is noted for hydrocarbons, seabed minerals, oil and natural gas potential due to heavy sediment deposits from Himalayan rivers.
• CSIR-NIO collaborates with Oil and Natural Gas Corporation (ONGC), Oil India and supports sectors including pharmaceuticals, ports, thermal power projects and fisheries.
• The centre identifies potential fishing zones, promotes seaweed cultivation and predicts harmful algal blooms to aid livelihoods and public health.
• The Visakhapatnam facility will serve as a hub for capacity building, skill training and nurturing startups for the marine sector.

Indian Oil Corporation Ltd (IOCL) and Akasa Air sign letter of intent to explore sustainable aviation fuel supply

[Indian Oil Corporation Ltd (IOCL), Akasa Air]

Key Updates:

• Indian Oil Corporation Ltd (IOCL) signed a letter of intent with Akasa Air at Wings India 2026 in Hyderabad to explore future sustainable aviation fuel (SAF) supply.
• The agreement sets a framework to assess SAF volumes, feedstocks and logistics without committing to firm timelines or quantities.
• IOCL and Akasa Air will evaluate feasibility of SAF supply to support the airline’s sustainability targets.
• SAF is used as a lower-emission alternative to conventional jet fuel to reduce lifecycle greenhouse gas emissions from air travel.

India adds Patna Bird Sanctuary and Chhari-Dhand as new Ramsar sites, tally reaches 98

[Patna Bird Sanctuary, Chhari-Dhand]

Key Updates:

• Patna Bird Sanctuary in Etah district, Uttar Pradesh, and Chhari-Dhand in Kutch district, Gujarat, were designated as Ramsar wetlands of international importance on 1 February 2026.
• India became a signatory to the Ramsar Convention in 1982 and now has 98 Ramsar sites.
• Chhari-Dhand is a seasonal saline wetland between the Banni grasslands and Kutch salt flats that supports about 30,000 common cranes and critically endangered sociable lapwings each winter.
• Patna Bird Sanctuary comprises freshwater marshes, woodlands and grasslands, records 178 bird species and 252 plant species, and is recognised as an Important Bird and Biodiversity Area by BirdLife International.
• Union Environment Minister Bhupender Yadav stated the sites are also home to chinkara, wolves, caracal, desert cats and desert foxes besides endangered birds.

Carlos Alcaraz conquers Australian Open 2026 to complete career Grand Slam

[Australia]

Key Updates:

• Carlos Alcaraz defeated Novak Djokovic 2-6, 6-2, 6-3, 7-5 to win the Australian Open 2026 men’s singles title.
• The final was played at Melbourne Park on 1 February 2026.
• At 22 years and 272 days, Alcaraz became the youngest man to complete the career Grand Slam, surpassing Rafael Nadal’s 2004 record of 24 years and 101 days.
• This victory gave Alcaraz his seventh Grand Slam title: two each at the French Open, Wimbledon, US Open, and now the Australian Open.
• Djokovic, aged 38, remained on 24 Grand Slam titles after his first-ever runner-up finish at the Australian Open.
• Alcaraz extended his ATP rankings lead to 3,350 points following the win.

Devika Sihag storms into maiden BWF Super 300 final at Thailand Masters 2026

[Thailand]

Key Updates:

• Devika Sihag defeated fifth-seeded Huang Yu-Hsun 22-20, 21-13 in the women’s singles semifinal of the Thailand Masters 2026 in Bangkok.
• The 20-year-old unseeded Indian will face Malaysia’s Goh Jin Wei in the summit clash.
• The tournament carries a prize purse of USD 250,000.

Adampur Airport renamed after Guru Ravidas on 649th birth anniversary

Key Updates:

• Prime Minister Narendra Modi inaugurated Adampur Airport and renamed it after Sri Sant Guru Ravidas Ji on the 649th birth anniversary of the saint.
• PM Modi also inaugurated the new terminal building at Halwara Airport in Ludhiana district, Punjab.
• Halwara Airport hosts a strategic Indian Air Force station and the new civil enclave features a longer runway capable of accommodating A320-type aircraft.
• The Halwara terminal incorporates green features including LED lighting, insulated roofing, rainwater harvesting systems, sewage and water treatment plants, and use of recycled water for landscaping.

International Zebra Day observed on January 31, 2026

Key Updates:

• International Zebra Day is celebrated annually on January 31.
• The day aims to raise awareness about zebras and how we can contribute to their conservation.
• Zebras primarily inhabit semi-desert regions in Kenya and Ethiopia, as well as hilly areas in Namibia, Angola, and South Africa.

Father Thomas V Kunnunkal, Former CBSE Chairman and Padma Shri Awardee, Passes Away at 99

[Central Board of Secondary Education (CBSE)]

Key Updates:

• Father Thomas V Kunnunkal, a Jesuit priest and former chairman of the Central Board of Secondary Education (CBSE), passed away in Delhi at the age of 99.
• He served as the chairman of the CBSE from 1980 to 1987 and is credited with transforming the board into a national academic benchmark.
• He was conferred with the Padma Shri in 1974 for his significant contributions to the field of education.
• Father Kunnunkal played a key role in conceptualising and establishing the National Open School under the National Policy on Education (NPE), 1986.
• He served two terms as the principal of St. Xavier’s School in Delhi, where he banned corporal punishment in 1970 and introduced full-time student counsellors.
• Born in Alappuzha, Kerala, in 1926, he held master’s degrees in English, Educational Administration, and Educational Measurement from the United States (US).
• His other leadership roles included serving as the director of the Indian Social Institute (ISI) in New Delhi and the president of the Islamic Studies Association.