Daily Current Affairs - 3rd January 2026
- TPP
- Jan 3
- 16 min read
Comprehensive UPSC Current Affairs Summary | Geo-Economics & India’s Strategic Challenge, India–Pakistan Nuclear Non-Attack Agreement, WHO Pharmacovigilance Ranking Boost, ECM Scheme, Battery Pack Aadhaar System, Urban Wastewater Crisis, Galaxy Frog Conservation, and more.
If you missed Monthly Current Affairs Pointers (CAP) | Sept - Oct 2025, read it here.Table of Content
SOCIAL ISSUES
SECURITY / DEFENCE
ENVIRONMENT & GEOGRAPHY
Geo-Economics: The New Frontier in International Politics
India is increasingly challenged as international politics shifts from traditional geopolitics to geo-economics.
Geopolitics refers to the pursuit of power through geography, military strength, and territorial control.
Geo-economics refers to the use of economic instruments such as trade, sanctions, investment, and supply chains to achieve geopolitical objectives.
This shift means economic strength is now as decisive as military power in shaping global influence.
How Geo-Economics Is Reshaping Geopolitics
Energy and resource diplomacy has emerged as a core geo-economic tool to control critical technologies and inputs.
The United States launched the “Pax Silica” initiative, which aims to secure global supply chains for semiconductors, artificial intelligence, and critical minerals.
India was excluded from the nine-member Pax Silica group, highlighting geo-economic alignment challenges.
Weaponization of interdependence refers to exploiting global economic linkages to coerce other countries.
The U.S. used financial sanctions by cutting off Russian banks from the SWIFT system, which is a global messaging network for international banking.
Trade policy is increasingly used as a strategic weapon rather than a commercial tool.
The U.S.–China trade war reflects competition for technological supremacy, particularly in semiconductors.
Geo-economic fragmentation refers to the breaking of global markets into rival economic blocs.
The EU’s Carbon Border Adjustment Mechanism (CBAM) imposes tariffs based on carbon emissions of imported goods.
CBAM shifts the burden of emission reductions onto the Global South, affecting developing economies like India.
India’s Key Challenges in the Geo-Economic Arena
India faces a severe mineral and technology gap in the emerging geo-economic order.
Despite having a geology comparable to Australia, India has explored only 25–30 percent of its mineral potential.
This under-exploration has led to 100 percent import dependence for critical minerals like lithium.
Critical minerals are resources essential for renewable energy, electric vehicles, and advanced technologies.
India’s research and development (R&D) ecosystem remains underdeveloped.
India spends only 0.6–0.7 percent of GDP on R&D, which limits technological self-reliance.
China and the United States spend 2.5–3 percent of their GDP on R&D, giving them a competitive edge.
Policy and governance gaps further constrain India’s geo-economic capacity.
Bureaucratic red-tapism discourages private sector participation in mineral exploration.
Limited private investment slows innovation and supply-chain resilience.
Way Ahead for India in Geo-Economics
India must actively forge geo-economic partnerships to reduce strategic vulnerabilities.
The Supply Chain Resilience Initiative (SCRI) involves India, Japan, Australia, and the United States.
SCRI aims to diversify and secure supply chains against geopolitical disruptions.
The Global Biofuels Alliance seeks to promote alternative energy cooperation.
This alliance offers a geo-economic alternative to fossil fuel cartels like OPEC.
India must significantly ramp up innovation and R&D spending.
The Research Development and Innovation (RDI) Scheme is a step toward strengthening domestic technological capacity.
Critical infrastructure and connectivity are essential for geo-economic influence.
The India-Middle East-Europe Economic Corridor (IMEC) aims to integrate trade, energy, and digital connectivity.
IMEC can function as a geo-economic bridge securing India’s trade routes and energy interests.
India–Pakistan Non-attack Agreement
India and Pakistan recently exchanged lists of nuclear installations under the Agreement on Prohibition of Attacks against Nuclear Installations and Facilities.
This agreement is commonly known as the India–Pakistan Non-attack Agreement.
About the India–Pakistan Non-attack Agreement
The agreement was signed on 31st December 1988, reflecting early confidence-building efforts between the two countries.
The agreement entered into force on 27th January 1991, making it legally binding.
The agreement mandates both nations to exchange information every year.
This exchange of information takes place on 1st January each year.
The information shared relates to the location of nuclear installations and facilities.
Nuclear installations refer to facilities involved in nuclear power generation, research, or nuclear material handling.
Aim of the Agreement
The primary aim of the agreement is to prevent direct attacks on nuclear installations.
The agreement also prohibits indirect actions that could cause destruction or damage.
These restrictions apply to any nuclear installation or facility in the other country.
Significance of the Agreement
The agreement is considered a key nuclear confidence-building measure (CBM) between India and Pakistan.
Confidence-building measures are steps taken to reduce mistrust and prevent unintended escalation.
The agreement plays an important role in reducing nuclear risk in South Asia.
World Health Organization’s Pharmacovigilance Database
India has significantly improved its global standing in pharmacovigilance reporting.
India moved to 8th position in 2025 in contributions to the World Health Organization’s pharmacovigilance database.
India was ranked 123rd in 2014, indicating substantial progress over a decade.
This ranking improvement occurred under the WHO Programme for International Drug Monitoring (WHO PIDM).
Role of the Pharmacovigilance Programme of India (PvPI)
The improvement in India’s ranking is primarily attributed to the Pharmacovigilance Programme of India (PvPI).
PvPI was launched in 2010 by the Government of India.
PvPI is India’s flagship drug safety monitoring programme.
Pharmacovigilance refers to the science of detecting, assessing, understanding, and preventing adverse effects of medicines.
PvPI analyses drug-related adverse events, which are unintended or harmful reactions to medicines.
PvPI forwards evidence-based recommendations to the Central Drugs Standard Control Organisation (CDSCO).
CDSCO is India’s national drug regulatory authority.
CDSCO takes appropriate regulatory actions based on PvPI recommendations.
WHO Programme for International Drug Monitoring (WHO PIDM)
The WHO Programme for International Drug Monitoring (WHO PIDM) was established in 1968.
The programme aims to place medicine and vaccine safety at the core of global healthcare systems.
WHO PIDM facilitates international collaboration on drug safety surveillance.
VigiBase is the WHO’s global database under WHO PIDM.
VigiBase contains adverse event reports for medicines and vaccines from participating countries worldwide.
Two Credit-linked Sub-Schemes under Export Promotion Mission
The Government of India launched two pilot credit-linked sub-schemes to support exporters.
These pilot schemes are part of the NIRYAT PROTSAHAN component of the Export Promotion Mission (EPM).
Niryat Protsahan refers to the financial support pillar aimed at improving export competitiveness.
Scheme 1: Interest Subvention for Pre- and Post-Shipment Export Credit
The first scheme provides interest subvention on pre- and post-shipment export credit.
Interest subvention means government support to reduce the effective interest rate for borrowers.
The scheme offers a base interest subvention rate of 2.75 percent on rupee-denominated export credit.
An additional incentive is provided for exports to notified under-represented or emerging markets.
Under-represented markets are countries where India’s export share remains low despite potential demand.
The annual financial cap under the scheme is ₹50 lakh per exporter. This cap applies specifically for FY 2025–26.
Eligibility under the scheme is restricted to exports covered under a notified positive list.
A positive list refers to approved items eligible for benefits under the scheme.
The eligibility list is defined at the HS 6-digit tariff line level.
HS 6-digit classification is an internationally standardized system for classifying traded goods.
The notified list covers approximately 75 percent of India’s total tariff lines.
Scheme 2: Collateral Support for Export Credit
The second scheme provides collateral support for export credit.
Collateral support reduces the need for exporters to provide physical assets as security.
The scheme is implemented in partnership with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
CGTMSE provides credit guarantees to improve MSME access to formal finance.
The scheme offers guarantee coverage of up to 85 percent for Micro and Small exporters.
The scheme provides guarantee coverage of up to 65 percent for Medium exporters.
The maximum guaranteed outstanding exposure is capped at ₹10 crore per exporter. This cap applies per financial year.
Eligibility conditions under this scheme are the same as the interest subvention scheme.
About Export Promotion Mission (EPM)
The Export Promotion Mission (EPM) was launched in November 2025.
The mission has a six-year duration from FY 2025–26 to FY 2030–31.
The mission has a total financial outlay of ₹25,060 crore.
The primary objective of EPM is to provide affordable trade finance.
The mission focuses particularly on MSMEs and labour-intensive sectors.
Textiles are cited as a key labour-intensive sector under the mission.
Mission Architecture of EPM
The Export Promotion Mission is structured around two distinct but integrated pillars.
The first pillar is Niryat Protsahan, which focuses on financial support.
Financial instruments under Niryat Protsahan include interest subvention, collateral guarantees, and export credit cards for e-commerce exporters.
The second pillar is Niryat Disha, which focuses on non-financial support.
Niryat Disha provides support for export quality improvement.
It also assists exporters with regulatory compliance and certification requirements.
The pillar supports international branding and logistics efficiency.
Significance of the Export Promotion Mission
The Export Promotion Mission enhances global competitiveness of Indian exporters.
The mission lowers the cost of exporting by reducing interest and collateral constraints.
It expands access to formal export finance, especially for MSMEs.
The mission strengthens India’s export brand through compliance and certification support.
It promotes diversification of export markets through international branding initiatives.
The mission supports job creation in labour-intensive industries.
It also encourages first-time exporters to enter global markets.
Electronics Component Manufacturing Scheme (ECMS)
The Ministry of Electronics and Information Technology (MeitY) approved 22 proposals under the Electronics Component Manufacturing Scheme (ECMS).
These approvals cover the manufacturing of segment products with cross-sectoral applications.
Cross-sectoral applications mean components that are used across multiple industries.
These sectors include mobile manufacturing and telecommunications.
The approvals further cover consumer electronics manufacturing.
The scheme supports strategic electronics, which are critical for national security and defence.
The approvals also extend to the automotive electronics sector.
The scheme includes components used in IT hardware products.
About Electronics Component Manufacturing Scheme (ECMS)
The ECMS was notified in April 2025. The scheme has a total financial outlay of ₹22,919 crore. The tenure of the scheme is six years.
The scheme allows an optional one-year gestation period, which is the preparatory phase before production begins.
The core objective of ECMS is to develop a robust electronics component manufacturing ecosystem in India.
The scheme aims to attract both global and domestic investments. These investments are targeted across the electronics value chain.
Value chain integration refers to linking raw materials, components, assembly, and final production.
ECMS seeks to integrate India’s domestic electronics industry with Global Value Chains (GVCs).
Global Value Chains (GVCs) are international production networks where different stages of manufacturing occur across countries.
Target Segments under ECMS
Segment A focuses on Sub-Assemblies.
Sub-assemblies under Segment A include Display Modules and Camera Modules.
Segment B focuses on Bare Components.
Bare components include electro-mechanical components and Printed Circuit Boards (PCBs).
Segment B further includes Lithium-ion (Li-ion) cells.
Segment C focuses on Selected Bare Components.
Selected bare components include High Density Interconnect (HDI) PCBs and Flexible PCBs.
Segment D focuses on the Supply Chain Ecosystem and Capital Equipment.
Capital equipment refers to machinery used for manufacturing electronic components.
Segment E focuses on Telecom Sub-Assemblies.
Types of Incentives under ECMS
ECMS provides differentiated fiscal incentives. These incentives are linked to turnover generated from target segment products.
Turnover-Linked Incentive (TLI) is provided for Segments A, B, and E.
TLI is calculated on incremental turnover or sales. The tenure of TLI is six years.
TLI also includes an optional one-year gestation period.
Capital Expenditure (Capex) Incentive is provided for Segment D.
Capex incentive supports eligible capital investments in manufacturing infrastructure.
The tenure of the Capex incentive is five years.
Hybrid Incentive is provided for Segment C.
Hybrid incentive combines turnover-linked and capex-based incentives.
The hybrid model is designed based on specific industry requirements.
India’s Electronics Industry: Current Status
India’s electronics production has witnessed rapid growth in the last decade.
Production increased from ₹1.9 lakh crore in 2014–15.
Production reached ₹11.3 lakh crore in 2024–25.
This growth represents a six-fold increase in electronics production.
India is now the world’s second largest mobile phone manufacturer.
Electronics Exports Performance
Electronics has emerged as India’s third largest export category.
Electronics is also the fastest growing export sector in 2024–25.
Electronics exports stood at ₹38,000 crore in 2014–15.
Exports increased to ₹3.27 lakh crore in 2024–25.
India’s Vision for Electronics Manufacturing
India aims to build a $500 billion domestic electronics manufacturing ecosystem.
The target year for achieving this vision is 2030–31.
Board of Trade (BoT)
The Board of Trade (BoT) recently highlighted a slowdown in India’s exports.
The slowdown was attributed to steep United States tariffs of 50 percent.
Tariffs are taxes imposed on imported goods that raise their cost in the importing country.
About the Board of Trade (BoT)
The Board of Trade is the apex advisory body on trade-related policy matters in India.
The BoT advises the government on measures related to the Foreign Trade Policy (FTP).
Foreign Trade Policy provides the framework for promoting exports and regulating imports.
The core aim of the BoT is to strengthen India’s overall trade ecosystem.
Composition and Leadership of BoT
The Chairman of the Board of Trade is the Minister for Commerce and Industry.
The membership of the BoT includes ministers in charge of trade and commerce from state governments and union territories.
The BoT also includes representatives from Export Promotion Councils (EPCs).
Export Promotion Councils are organizations that promote exports of specific product groups.
The membership further includes industry associations, which represent business interests.
Institutional Evolution of BoT
The Board of Trade was reconstituted in 2019.
This reconstitution occurred through the merger of the Council for Trade Development and Promotion with the BoT.
PRAGATI (Pro-Active Governance and Timely Implementation)
The Prime Minister chaired the 50th meeting of PRAGATI.
PRAGATI stands for Pro-Active Governance and Timely Implementation.
Role and Impact of PRAGATI
The PRAGATI system has accelerated the implementation of mega infrastructure projects.
The platform has also expedited the execution of key government welfare schemes.
About PRAGATI
PRAGATI was launched in 2015. PRAGATI functions as a three-tier governance system.
The first tier of PRAGATI is the Prime Minister’s Office (PMO).
The PMO provides top-level leadership and decision-making.
The second tier consists of Secretaries of the Union Government.
Union Government Secretaries ensure inter-ministerial coordination.
The third tier comprises Chief Secretaries of the States.
Chief Secretaries act as the administrative heads of state governments.
Objectives of PRAGATI
One objective of PRAGATI is Programme Implementation.
Programme implementation focuses on coordination between multiple government agencies.
Another objective of PRAGATI is Project Monitoring.
Project monitoring is carried out through a technology-based digital platform.
A third objective of PRAGATI is Grievance Redressal.
Grievance redressal under PRAGATI is facilitated through CPGRAMS.
CPGRAMS stands for the Centralised Public Grievance Redress and Monitoring System.
Battery Pack Aadhaar Number (BPAN)
The Government of India has released draft guidelines for the Battery Pack Aadhaar System.
Battery Pack Aadhaar System (BPAN) is an indigenous digital identification and data storage system.
The system ensures end-to-end traceability of batteries throughout their entire lifecycle.
Traceability refers to the ability to track a battery from manufacture to disposal.
Each battery pack is assigned a unique identification number under BPAN.
This number captures and stores vital information from raw material extraction to final disposal.
Battery categories required to maintain a Battery Pack Aadhaar as an electronic record include Electric Vehicle (EV) batteries.
The system also applies to Industrial Batteries with capacity greater than 2 kilowatt-hours (kWh).
Kilowatt-hour (kWh) is a unit of energy representing the amount of energy consumed or stored in one hour by a device of one kilowatt.
The significance of BPAN includes enabling second-life usage of batteries.
Second-life usage refers to repurposing used batteries for less demanding applications.
BPAN also ensures regulatory compliance in battery production, usage, and disposal.
Another key benefit is efficient recycling of batteries, reducing environmental impact.
Drinking Water Contamination in Indore
A health crisis occurred in Indore, Madhya Pradesh, due to mixing of sewage with drinking water.
This incident highlights concerns regarding urban wastewater management (UWM) in India.
Urban wastewater management refers to the collection, treatment, and safe disposal or reuse of wastewater generated in cities.
Poor UWM has the potential to turn water contamination into a public health crisis.
Status of Urban Wastewater Management in India
The estimated wastewater generation in urban areas was approximately 72,368 Million Litres per Day (MLD) in 2020–21, according to NITI Aayog.
72 percent of this wastewater remains untreated.
Untreated wastewater is disposed of into rivers, lakes, or infiltrates into groundwater, polluting water resources.
Potential Health Impacts
Contaminated water can cause cholera, a bacterial infection causing severe diarrhea.
It can also lead to diarrhoea and dysentery, causing dehydration and gastrointestinal illness.
Hepatitis A, a viral liver infection, is another potential consequence.
Drinking contaminated water can also spread typhoid.
Polio, a viral disease affecting the nervous system, is another risk associated with poor wastewater management.
Wastewater Treatment Systems
On-site treatment systems retain wastewater near the toilet in a pit or tank.
Sludge produced in on-site systems is removed periodically.
Off-site treatment systems include a sewerage network to transport sewage to a Sewage Treatment Plant (STP).
Sewage Treatment Plants clean wastewater to remove contaminants before release or reuse.
Challenges Faced by UWM in India
Institutional challenges exist as government departments often work in silos, duplicating efforts.
Urban Local Bodies (ULBs), primarily responsible for wastewater management, often lack capacity and expertise.
Archaic infrastructure is a key issue, including lack of periodic maintenance and rehabilitation.
Limited land availability restricts the setup of new wastewater treatment plants.
Economic challenges include high non-revenue water, which is water lost due to leaks or theft.
Urban water service providers also face unrealistic tariffs, low tariff collection, and inadequate cost recovery.
Technological challenges include absence of affordable and efficient treatment technologies.
There is also a lack of mapping of connectivity of sewage drainage systems, hampering planning and maintenance.
Solutions for Sustainable Urban Wastewater Management
Decentralized treatment systems treat wastewater as close to its source as possible, which is ecologically beneficial.
Urban and industrial waste reforms include mandating Zero Liquid Discharge (ZLD).
Zero Liquid Discharge (ZLD) ensures that all wastewater is treated and reused with no discharge into the environment.
Reforms also include regulating landfills and enforcing penalties for illegal discharges.
Modernized monitoring systems integrate water quality data with health surveillance platforms like Health Management Information System (HMIS).
Integration with HMIS allows early detection of waterborne disease outbreaks.
Nature-based solutions include constructed wetlands, green roofs, living walls, waste stabilization ponds, and vermifiltration.
These solutions use natural processes to treat wastewater sustainably and cost-effectively.
Notice to Social Media Platform ‘X’
The Ministry of Electronics and Information Technology (MeitY) has issued a notice to social media platform ‘X’.
The notice concerns misuse of its AI tool ‘Grok’ to generate obscene, indecent, and sexually explicit synthetic images and videos of women and children.
Synthetic images/videos refer to AI-generated content that mimics real individuals or scenarios.
Issues Flagged by the Government
The government flagged non-compliance with Indian IT laws.
Non-compliance includes failure to meet due-diligence obligations under the IT Act, 2000 and IT Rules, 2021.
The government also highlighted violation of privacy and dignity.
AI-generated content undermines women’s privacy, dignity, and safety.
Regulation of Social Media in India
The Information Technology Act, 2000 provides the primary legal framework for online content regulation.
Section 66E punishes violation of privacy by capturing or transmitting private images without consent.
Section 67 punishes publishing or transmitting obscene material in electronic form.
Section 67A specifically punishes sexually explicit content in electronic form.
Section 67B covers sexual content involving children.
The IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 operate under the IT Act, 2000.
Rule 3 (Due diligence by intermediaries) requires platforms to remove unlawful content and stop hosting obscene or sexual material.
Rule 4 (Additional rules for Significant Social Media Intermediaries) mandates platforms to appoint a Chief Compliance Officer and Grievance Officer.
Rule 4 also requires platforms to enable traceability of unlawful content.
Non-compliance with IT Rules may lead to loss of ‘safe harbour protection’, which normally shields platforms from liability for user-generated content.
The Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023 obligates platforms to inform police when they detect serious cognisable offences.
This is particularly important for offences involving women or children.
Galaxy Frog
A recent study reported that a group of seven galaxy frogs vanished from the Western Ghats.
The disappearance was linked to the rise in photo tourism, which disturbs their natural habitat.
About Galaxy Frog
The galaxy frog belongs to the genus Melanobatrachus.
It is the only known species of its genus, making it a monotypic genus.
The species is endemic to the Western Ghats of south-western India.
Endemic species are those found only in a specific geographic area.
The galaxy frog is mostly found in high-altitude evergreen forests.
It is also found in shola forests, a type of montane tropical forest in South India.
Characteristics
The galaxy frog is a rare species with a slender, elongated body of uniform width.
It is terrestrial, meaning it lives primarily on the ground rather than in water or trees.
The species is associated with leaf litter, rocks, and other ground cover in moist evergreen tropical forests.
Conservation Status
According to the International Union for Conservation of Nature (IUCN), the galaxy frog is classified as Vulnerable.
Vulnerable status indicates the species faces a high risk of extinction in the wild.
Staphylococci
Researchers detected high levels of antibiotic-resistant staphylococci in both indoor and outdoor environments in parts of Delhi.
About Staphylococcus
Staphylococci are gram-positive cocci, meaning they are spherical-shaped bacteria that retain the violet color in Gram staining.
They typically occur in groups arranged in clusters, resembling a bunch of grapes.
Staphylococci were first observed in humans by Von Recklinghausen.
These bacteria show tolerance to penicillin.
They also exhibit resistance to clinically useful antibiotics such as erythromycin, tetracycline, and aminoglycosides.
Two main types of staphylococci are Staphylococcus aureus and Staphylococcus epidermidis.
Staphylococcus aureus is often associated with serious infections and antibiotic resistance.
Staphylococcus epidermidis is usually less harmful but can cause infections in immunocompromised individuals.
Access and Benefit Sharing (ABS)
The National Biodiversity Authority (NBA) disbursed ₹45 lakh to red sanders farmers from Andhra Pradesh under Access and Benefit Sharing (ABS).
About Red Sanders
Red Sanders is an Indian endemic tree species. Endemic species are those found only in a specific geographic region.
Red Sanders has a restricted geographic range in the Eastern Ghats, specifically in forests of Andhra Pradesh.
According to the IUCN, Red Sanders is classified as Endangered.
Endangered status indicates that the species faces a very high risk of extinction in the wild.
About Access and Benefit Sharing (ABS)
Access and Benefit Sharing (ABS) is a framework under the Convention on Biological Diversity (CBD, 1992).
ABS is also guided by the Nagoya Protocol (2010).
The framework ensures fair and equitable sharing of benefits arising from the use of genetic resources and traditional knowledge.
In India, ABS is governed by the Biological Diversity Act, 2002.
It is further regulated by the 2025 Access and Benefit Sharing (ABS) Regulations.
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