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Daily Current Affairs - 3rd February 2026

Updated: Feb 4

Comprehensive UPSC Current Affairs Summary | India–US Landmark Trade Agreement, Delhi Declaration with Arab League, NSO Migration Survey 2026–27, Bond Yield Spike & Debt-to-GDP Shift, General Theory of Relativity, Gravitational Lensing, Heatwaves & Lightning as National Disasters, Supreme Court on Polluter Pays Principle, FDI & Trade Dynamics, Rural–Urban Migration Challenges and more.

  1. India–United States Trade Agreement

  1. India and the United States have signed a landmark trade agreement, marking a major reset in bilateral economic relations.

  2. Under the agreement, US reciprocal tariffs (tariffs imposed to match another country’s duties) on Made in India products have been reduced from 25% to 18% with immediate effect.

  3. The United States has also withdrawn the additional 25% duty that was imposed earlier on Indian goods.

    • In August 2025, the US had imposed a combined tariff of up to 50% on Indian exports.

    • This 50% tariff consisted of a 25% reciprocal tariff and an additional 25% duty linked to India’s imports of Russian oil.


India’s Commitments Under the Agreement

  1. As per US disclosures, India has agreed to significantly scale up imports of American goods.

  2. These imports include over USD 500 billion worth of energy, technology products, and nuclear equipment.

  3. India has committed to progressively reducing tariffs, which are taxes imposed on imported goods.

  4. India has also agreed to lower Non-Tariff Barriers (NTBs), which are regulatory or procedural restrictions that limit trade without using tariffs.


Economic Significance of the Deal

  1. The agreement creates expanded opportunities for farmers, MSMEs, entrepreneurs, and skilled workers in India.

    • MSMEs refer to Micro, Small and Medium Enterprises, which are key drivers of employment and exports.

  2. The deal strengthens the Make, Design and Innovate in India for the world vision.

  3. The agreement facilitates greater access to advanced US technology for Indian industries.


Strategic and Diplomatic Significance

  1. The deal marks a strategic reset in India–US bilateral relations.

  2. It brings an end to a phase of tariff-led trade escalations, which had strained economic ties.

  3. The agreement helps restore trust and momentum in India–US strategic and economic engagement.


Geopolitical Implications

  1. The agreement strengthens India’s position in global supply chains, which are networks involved in global production and distribution.

  2. It helps India diversify manufacturing and trade linkages, reducing excessive dependence on any single country.

  3. The deal potentially counters China’s dominant position in global trade and manufacturing.


Macroeconomic Stability

  1. The agreement is expected to stabilise capital flows, meaning smoother movement of foreign investment.

  2. It supports the Indian rupee by improving trade and investment confidence.

  3. The deal enhances investor confidence, especially amid global economic uncertainty.


India–US Trade Relations: Key Facts

  1. The United States is one of India’s largest trading partners.

  2. India runs a trade surplus with the US, meaning India exports more to the US than it imports.

  3. This surplus is mainly driven by services exports and high-value manufactured goods.


Foreign Direct Investment (FDI)

  1. The United States is India’s 3rd largest foreign investor.

  2. Cumulative FDI inflows from the US stand at USD 70.65 billion between 2000 and 2025.

    • FDI refers to long-term investment by a foreign entity in domestic businesses.


Bilateral Trade Volume

  1. India–US bilateral trade reached a record USD 132.2 billion in FY25.

  2. This represents a significant increase from USD 119.71 billion in FY24.


Major Indian Exports to the United States

  1. Key Indian exports include pharmaceuticals, which are medicinal products.

  2. India also exports engineering goods, including machinery and industrial equipment.

  3. Other major exports include electronics and gems and jewellery.


Major US Exports to India

  1. The United States exports crude oil and Liquefied Natural Gas (LNG) to India.

    1. LNG refers to natural gas cooled into liquid form for easier transport.

  2. The US also exports aircraft and aircraft parts to India.

  3. Defence equipment forms another important component of US exports to India. 

  1. Delhi Declaration between India and League of Arab States

  1. India and the League of Arab States (Arab League) adopted the Delhi Declaration to strengthen political, economic, and strategic cooperation.

  2. The Declaration was signed with the participation of the Indian External Affairs Minister, the Foreign Ministers of Arab States, and the Secretary-General of the Arab League.


Key Highlights: Peace and Security

  1. The Declaration reaffirms support for multilateralism, which means collective decision-making through international institutions.

  2. It emphasises respect for sovereignty of states, referring to a nation’s authority over its internal and external affairs.

  3. The Declaration highlights cooperation in counterterrorism efforts, which involve preventing and responding to terror activities.

  4. It supports reforms of the United Nations Security Council (UNSC) to make it more representative and effective.

Map showing Arab League countries in green, covering parts of North Africa and the Middle East. "The Arab League" text overlays in yellow.

Key Highlights: Economic Stability and Security

  1. The Declaration recognises the importance of economic stability as a foundation for regional peace and development.

  2. It cites the Suez Canal–Red Sea Economic and Maritime Development Initiative (STREAM) as a key regional framework.

  3. STREAM aims to promote economic integration, which involves deeper trade, investment, and connectivity among countries.

  4. The initiative also focuses on maritime development, referring to port infrastructure, shipping, and sea-based trade.


Key Country-Specific Highlights

  1. On Palestine, the Declaration supports the creation of a sovereign, independent, and viable State of Palestine.

    • Sovereignty here refers to Palestine’s right to self-governance without external control.

  2. The Declaration welcomed the 2025 Sharm El-Sheikh Peace Summit.

  3. The Summit focused on achieving a ceasefire in Gaza, which means a temporary or permanent halt in hostilities.

  4. On Yemen, the Declaration condemned attacks carried out by Houthi militias, an armed non-state group.

  5. It emphasised the need to protect the Bab al-Mandab Strait, a strategic maritime chokepoint.

  6. The Bab al-Mandab Strait connects the Red Sea with the Gulf of Aden and is vital for global trade and energy flows.


About the League of Arab States (Arab League)

  1. The Arab League is an intergovernmental organisation comprising Arab countries in the Middle East and North Africa (MENA) region.

  2. It was formally established on March 22, 1945.

  3. The League was created following the adoption of the Alexandria Protocol in 1944, which laid its foundational principles.

  4. The Arab League has 22 member states. The founding members were Egypt, Iraq, Lebanon, Saudi Arabia, Syria, Transjordan, and Yemen.

  5. The headquarters of the Arab League is located in Cairo, Egypt.


Importance of the Arab League for India

Economic Importance

  1. Trade between India and Arab League countries exceeds USD 240 billion.

  2. India imports over 47% of its crude oil from Arab League nations.

  3. Crude oil is a primary energy source used in transport, industry, and power generation.

  4. India also imports around 50% of its fertilisers and related products from Arab League countries.

  5. Fertilisers are critical inputs for agricultural productivity and food security.

Strategic Significance

  1. A large share of India’s external trade passes through the Suez Canal.

  2. The Suez Canal is a key global maritime route connecting the Mediterranean Sea and the Red Sea.

  3. India’s trade also transits through the Red Sea and the Gulf of Aden.

  4. These sea routes are vital for energy security and uninterrupted trade flows.

Diaspora Linkages

  1. Over 9 million Indians live in Arab League countries.

  2. The Indian diaspora plays a crucial role in remittances, people-to-people ties, and economic engagement.

  1. NSO Survey on Migration in India

  1. The National Statistics Office (NSO) will conduct a nationwide Survey on Migration across India.

  2. The survey will be conducted during the period July 2026 to June 2027.

  3. The survey aims to capture detailed information on the extent and nature of migration.

  4. It will study rural–urban migration, which refers to movement from villages to cities.

  5. The survey will also capture inter-state migration, meaning movement across state boundaries.

  6. It will identify the key reasons for migration, including economic, social, and environmental factors.


Recent Trends in Migration in India

  1. The overall migration rate in India stood at 28%. This estimate is based on the Periodic Labour Force Survey (PLFS) 2020–21.

    • The PLFS is a large-scale household survey that tracks employment and labour market trends.

  2. Migration patterns show sharp gender differences.

  3. The migration rate among males was estimated at 10.7% and females was significantly higher at 47.9%.


Key Reasons for Migration in India

Gender-Specific Reasons

  1. Marriage was the predominant reason for migration among females.

  2. 86.8% of female migrants cited marriage as the primary cause of migration.

  3. Employment was the major reason for migration among males.

  4. 22.8% of male migrants moved due to labour market opportunities.

  5. Labour market opportunities refer to the availability of jobs and income-generating work.

Pull Factors of Migration

  1. Pull factors refer to conditions that attract people to a destination area.

  2. Migration is driven by the presence of job opportunities in destination regions.

  3. Migrants are also attracted by the prospect of a better standard of living.

  4. Rural-to-urban migration is a prominent example of pull-factor-driven movement.

  5. Nearly one in four rural Indians (26.8%) was a migrant in 2020–21.

  6. This estimate is reported in the Economic Survey 2025–26.

Push Factors of Migration

  1. Push factors refer to conditions that force people to leave their place of origin.

  2. A lack of job opportunities is a major push factor in rural and backward regions.

  3. Low wages or salaries also compel individuals to migrate.

  4. Unfavourable environmental conditions contribute to distress migration.

  5. Natural calamities, such as floods and droughts, further accelerate migration.


Key Challenges Associated with Migration in India

Declining Rural Workforce and Agricultural Crisis

  1. Migration leads to a declining rural workforce.

  2. This creates a workforce deficit in agriculture.

  3. The deficit negatively impacts agricultural efficiency.

  4. It also raises concerns related to food supply and food security.

Social Disruptions

  1. Migrants often leave behind elderly family members and dependents.

  2. This disrupts traditional family structures and social support systems.

Strain on Urban Public Services and Infrastructure

  1. Migration increases pressure on urban public services.

  2. It affects healthcare delivery systems in cities.

  3. It places additional burden on education infrastructure.

  4. Urban transport systems also face capacity and congestion challenges.

Impact on Migrants

  1. Migrants often live in precarious living conditions.

  2. Many lack access to adequate sanitation and basic services.

  3. Migrants typically have weaker social networks in destination areas.

  4. They frequently face poor working conditions.

  5. Migrant workers often receive lower wages compared to local workers.


Key Measures to Address Migration Challenges

Rural Development Initiatives

  1. Strengthening rural livelihoods can reduce distress-driven migration.

  2. The Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM) aims to enhance rural incomes.

  3. DAY-NRLM focuses on self-employment and skill development for rural households.

  4. The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 strengthens rural employment.

  5. The Act aims to provide income security and sustainable livelihoods in rural areas.

Urban Resilience Initiatives

  1. Urban planning reforms are needed to manage migration-induced urbanisation.

  2. The Atal Mission for Rejuvenation and Urban Transformation (AMRUT) focuses on basic urban infrastructure.

    • AMRUT improves water supply, sewerage, and urban transport systems.

  3. The Smart Cities Mission promotes technology-driven urban governance.

  4. Transit-Oriented Development (ToD) encourages compact city growth around public transport corridors.

Workers’ Welfare Measures

  1. Social security schemes strengthen the safety net for migrant workers.

  2. The Pradhan Mantri Shram Yogi Maan-Dhan Yojana (PMSYM) provides pension support to unorganised workers.

  3. The Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) ensures free food grains for vulnerable populations.

  4. The One Nation One Ration Card (ONORC) scheme enables nationwide portability of food entitlements.

  5. ONORC allows migrants to access subsidised food anywhere in the country

  1. Bond Yields

  1. The benchmark 10-year government bond yield settled at around 6.77%.

  2. This level was sharply higher than the previous trading session.

  3. It marked the highest closing level since mid-January 2025.


About Bond Yields

  1. Bond yield refers to the annual return earned by an investor from a bond.

  2. It is calculated by considering interest payments, also called coupon payments.

  3. It also accounts for the repayment of principal at maturity.

  4. The yield reflects the return relative to the bond’s purchase price.


Relationship Between Bond Yields and Bond Prices

  1. Bond yields have an inverse relationship with bond prices.

  2. An inverse relationship means that when yields rise, bond prices fall.

  3. A rise in yields leads to lower bond prices in the secondary market.

  4. The secondary market refers to the market where existing bonds are traded.


Impact of Higher Bond Yields

  1. Higher bond yields reduce the market value of existing bonds.

  2. This occurs because newer bonds offer higher returns, making older bonds less attractive.

  3. Rising bond yields increase borrowing costs for companies.

  4. Higher borrowing costs can affect investment and economic activity.

  1. Debt-to-GDP Ratio: Current Status and Projections

  1. India is on track to achieve a debt-to-GDP ratio of 50 ± 1 percent by 2030–31.

  2. The debt-to-GDP ratio is estimated at 55.6 percent of GDP in Budget Estimates (BE) 2026–27.

  3. Budget Estimates refer to the government’s projected fiscal numbers for a financial year.


Shift in Fiscal Policy Target

  1. The debt-to-GDP ratio is increasingly being used as the primary fiscal policy target.

  2. This marks a shift away from the fiscal deficit-to-GDP ratio.

  3. The fiscal deficit-to-GDP ratio measures the gap between government expenditure and revenue as a share of GDP.

  4. The fiscal deficit-based framework was earlier used under the Fiscal Responsibility and Budget Management (FRBM) Act, 2003.


About the FRBM Act, 2003

  1. The FRBM Act, 2003 provides a legal framework for fiscal discipline in India.

  2. It aims to guide the government’s fiscal policy towards a sustainable fiscal path.

  3. The Act seeks to promote long-term economic stability and macroeconomic prudence.


About the Debt-to-GDP Ratio

  1. The debt-to-GDP ratio is a key financial metric used to assess fiscal health.

  2. It compares a country’s total public debt with its Gross Domestic Product (GDP).

  3. GDP represents the total value of goods and services produced in an economy.

  4. The ratio indicates the country’s ability to service and repay its debt.


Implications of a High Debt-to-GDP Ratio

  1. A higher debt-to-GDP ratio reduces the likelihood of timely debt repayment.

  2. It increases the risk of default, which refers to failure to meet debt obligations.

  3. Elevated debt levels can undermine investor confidence and fiscal credibility.

  1. General Theory of Relativity

Researchers have reported that Albert Einstein’s General Theory of Relativity has passed its most rigorous experimental test so far.


Origin and Background of the Theory

  1. The General Theory of Relativity was published in 1915.

  2. It expanded upon the Special Theory of Relativity, which was published 10 years earlier.

  3. Both theories were formulated by Albert Einstein, a theoretical physicist.


Core Idea of the Theory

  1. The theory explains gravity not as a force, but as a curvature of space-time.

  2. Space-time refers to the combined framework of three dimensions of space and one dimension of time.

  3. This curvature is caused by the presence of mass and energy.


Nature of Gravitation in the Theory

  1. The theory established that gravitation propagates at a finite speed.

  2. This speed is equal to the speed of light.

  3. Gravity is understood as the way mass bends or wraps space and time.

  4. A larger mass produces greater curvature of space-time.

  5. Greater curvature results in stronger gravitational effects.


Significance of the General Theory of Relativity

  1. The theory provides a fundamental understanding of gravity.

  2. It accurately predicts phenomena involving strong gravitational fields.

  3. One such prediction is the merger of black holes.

  4. Black holes are regions of space-time where gravity is so strong that even light cannot escape.

  1. Gravitational Lensing

  1. Astronomers have identified rare “time-warped” supernovas.

  2. In these cases, the light from the supernova is split by gravitational lensing.

  3. Part of the light has already reached Earth, while the rest is delayed by decades.

  4. This delay occurs due to space-time distortion, which bends the path of light.


About Supernova

  1. A supernova occurs when a star reaches the end of its life and explodes.

  2. The explosion emits a brilliant burst of light visible across galaxies.

  3. Supernovae are significant because they provide critical data to measure the expansion rate of the universe.

  4. They also help scientists study the early history of the cosmos.


About Gravitational Lensing

  1. Gravitational lensing occurs when a massive object, such as a galaxy or galaxy cluster, acts like a lens.

  2. The massive object warps space and time, bending the path of light passing nearby.

  3. This effect distorts, magnifies, and changes the apparent position of light sources.

  4. Gravitational lensing allows astronomers to observe distant cosmic objects that would otherwise be too faint or hidden.

  1. Nationally Notified Disasters

The 16th Finance Commission has recommended that heatwaves and lightning strikes be added to India’s list of nationally notified disasters.


About Nationally Notified Disasters

  1. Nationally notified disasters are specific categories of disasters recognised under the Disaster Management Act, 2005.

  2. Recognition allows for relief, emergency response, and funding support from government disaster funds.

  3. Key funding sources include the State Disaster Response Fund (SDRF) and the National Disaster Response Fund (NDRF).

    • SDRF is a state-level fund used to respond to disasters within a state.

    • NDRF is a central-level fund supporting states during major disasters.


Currently Included Disasters

  1. The existing list includes cyclones, droughts, and earthquakes.

  2. It also covers fires, floods, and tsunamis.

  3. Other notified disasters include hailstorms, landslides, avalanches, and cloudbursts.

  4. The list further includes pest infestations, frost, and cold waves.

  1. Supreme Court Judgement on Environmental Compensation

  1. The Supreme Court of India emphasised the “polluter pays” principle in its recent judgement.

  2. The Court urged higher environmental penalties for large corporations to ensure compliance.

  3. The polluter pays principle means that entities causing environmental harm must bear the cost of restoring or remediating the damage.


Key Highlights of the Judgement

Deterrence Over Tokenism

  1. The Court emphasised that penalties must act as a real deterrent rather than symbolic fines.

  2. It noted that small fines are inconsequential for large corporations, failing to discourage violations.

Proportional Penalties

  1. Penalties must be proportionate to the financial capacity of violators.

  2. Uniform fines across companies are ineffective in deterring well-resourced corporations.

Reiteration of Polluter Pays Principle

  1. The Court reiterated that entities responsible for environmental harm must bear remediation costs.

  2. Remediation refers to actions taken to restore the environment to its original or safe condition.

Linkage to Fundamental Rights

  1. The judgement linked environmental protection to Article 21 of the Indian Constitution.

  2. Article 21 guarantees the right to life and personal liberty, which includes the right to a healthy environment.

  3. The Court underscored the need for stringent enforcement to uphold sustainable development.

  4. Sustainable development refers to meeting present needs without compromising the ability of future generations to meet theirs.

  1. PAIMANA

Recently a new web-based portal named  PAIMANA has been operationalised.

About PAIMANA (Project Assessment, Infrastructure Monitoring & Analytics for Nation-building)

  1. PAIMANA is a web-based portal operationalised by the Ministry of Statistics & Programme Implementation (MoSPI).

  2. It replaces OCMS-2006 (Online Computerized Monitoring system) for monitoring Central Sector Infrastructure Projects worth ₹150 crore and above.

  3. Based on the principle of “one data, one entry”.

    • Integrated with DPIIT’s Integrated Project Monitoring Portal (IPMP/IIG-PMG) through APIs, enabling automatic data flow.

  4. Functions as a centralised national repository with advanced analytics, dashboards, role-based access, reporting & query modules, and data gap identification.


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