Daily Current Affairs - 2026-01-11
The Daily Gazette
The Core Update: In the pre-budget consultation with the Union Finance Minister, a majority of States supported the Union government’s reform agenda aligned with the goal of making India a ‘Viksit Bharat’ (developed nation) by 2047, while also seeking continuation of Special Assistance for capital investment and other fiscal support.[4]
This meeting is not a mere formality; it reflects how fiscal federalism is evolving in India.[4] On one hand, States endorsing the ‘Viksit Bharat 2047’ vision indicates broad political convergence on long-term growth, infrastructure expansion and structural reforms.[4] On the other, their demand for continued Special Assistance for capital investment underlines States’ dependence on Union transfers for roads, irrigation, health infrastructure and urban projects—areas critical for inclusive development.[4]
Crucially, these consultations come against the backdrop of the upcoming Union Budget, debates on GST compensation, and concerns over shrinking fiscal space for States due to centrally sponsored schemes. For an aspirant, it is important to see this as an institutionalised form of “cooperative federalism”, but also to recognise the underlying negotiation over resources and autonomy. Going ahead, watch for how the Budget allocates capital spending, alters tax devolution assumptions, or tweaks borrowing limits, as each of these will directly impact State-level welfare and infrastructure priorities.
- ‘Viksit Bharat 2047’ as a long-term national development vision guiding budgetary and reform priorities.[4]
- Pre-budget meetings as instruments of cooperative federalism within the framework of Articles 268–281 (Centre–State financial relations) and Finance Commission recommendations.
The Core Update: The Enforcement Directorate (ED) has moved the Supreme Court against actions and directions of the West Bengal government that allegedly hinder its raids and investigations, and is expected to urgently mention the matter before the Chief Justice of India seeking judicial intervention.[4]
This confrontation is emblematic of the tension between Union investigative agencies and elected State governments.[4] The ED, a central agency under the Union government, invokes its powers under the Prevention of Money Laundering Act (PMLA), while States often allege political misuse and encroachment upon their policing powers under the State List. When such disputes reach the Supreme Court, the issue is no longer just about individual raids but about the constitutional boundaries of federalism, the scope of central agencies and protection of civil liberties.
However, the Court’s role is delicate: it must ensure that corruption and money laundering are effectively investigated while preserving the autonomy of States and preventing arbitrary executive action. In the coming days, the Supreme Court’s interim orders—whether granting protection to the ED, prescribing protocols for raids, or insisting on cooperation from State police—could become important case material on the balance between Union power and State executive authority.
- ED is a statutory body under the Department of Revenue, Ministry of Finance; key law – Prevention of Money Laundering Act (PMLA), 2002.
- Constitutional context: Seventh Schedule (Union vs State List), Articles 245–246 (legislative competence), and judicial review under Articles 32 and 136 when Centre–State conflicts escalate.
The Core Update: The Uttar Pradesh government has revised school admission rules under the Right of Children to Free and Compulsory Education Act (RTE), 2009 by removing the mandatory requirement of a child’s Aadhaar card for admission, thereby easing access for many disadvantaged children.[1][2]
This policy tweak appears small, but for vulnerable families it is decisive.[1][2] Making Aadhaar mandatory often excludes children of migrant workers, urban poor, and those without documentation from exercising their fundamental right to education under Article 21A. By delinking admissions from Aadhaar, the State acknowledges that identification infrastructure cannot become a barrier to welfare entitlements and basic rights.
Crucially, it also reflects the broader debate around Aadhaar-based authentication in welfare schemes, privacy concerns, and exclusion errors. For the exam, angle this issue as a case study: how administrative flexibility can further social justice while still allowing for Aadhaar to be collected later for DBT and monitoring. Going ahead, watch whether other States adopt similar relaxation and how the Centre responds in terms of RTE implementation guidelines.
- RTE Act, 2009 mandates free and compulsory education for children aged 6–14 years (Article 21A and Article 45 in DPSP framework).
- Aadhaar-related jurisprudence: Supreme Court’s Puttaswamy (2017) verdict upholding privacy as a fundamental right and subsequent Aadhaar judgment limiting mandatory use to specific schemes.
The Core Update: Afghanistan has appointed Noor Ahmad Noor as its first envoy to India since the Taliban seized power in Kabul, marking a significant shift in the diplomatic engagement between the two sides after several years of uncertainty.[1][2]
India has so far adopted a cautious policy towards the Taliban regime, maintaining a limited diplomatic footprint and focusing primarily on humanitarian assistance. The arrival of an Afghan envoy suggests a gradual normalisation of channels of communication.[1][2] For India, Afghanistan is not just about development projects; it is a critical piece of the regional security puzzle involving Pakistan, China, Central Asia, and the larger fight against terrorism.
However, formal recognition of the Taliban government remains a sensitive issue, tied to concerns about human rights, women’s education, and anti-India terror groups operating from Afghan soil. What comes next will likely be incremental: enhanced consular services, discussions on stalled infrastructure projects (like dams, Parliament building maintenance, power projects), and cooperation on humanitarian aid. Aspirants should connect this development to India’s “neighbourhood-first” and “Connect Central Asia” policies, and to larger debates on recognition of regimes that come to power through non-democratic means.
- India–Afghanistan relations: historic soft power (education, health, infrastructure), strategic interests (counterterrorism, trade routes via Chabahar and INSTC).
- Concept of recognition of governments in international law and India’s cautious engagement with the Taliban without full formal recognition.
The Core Update: Iran’s Revolutionary Guards have warned that security is a ‘red line’ for the regime as authorities move to quell continuing protests, accusing the US and Israel of fomenting unrest and vowing to protect public property and state authority.[3]
The protests in Iran, driven by grievances over political freedoms, economic hardship, and governance deficits, have repeatedly challenged the legitimacy of the clerical establishment.[3] The Revolutionary Guards stepping in with a ‘red line’ warning signals the securitisation of what began as largely civilian demonstrations. This has two key implications: further clampdowns on dissent domestically and potential hardening of Iran’s posture externally to rally nationalist sentiment.
For India, Iran is a vital partner for energy security (oil, gas) and connectivity (Chabahar Port, access to Afghanistan and Central Asia). Prolonged instability and intensified Western sanctions can disrupt these interests and force India to keep balancing ties with Iran against its relationships with the US and Gulf states. Going forward, aspirants should watch how the unrest affects nuclear negotiations, sanctions regimes, and the operationalisation of connectivity projects like Chabahar.
[Image of Map of Iran and key regional chokepoints including Strait of Hormuz]- Role of Iran’s Islamic Revolutionary Guard Corps (IRGC) in domestic control and regional proxy networks (Iraq, Syria, Yemen, Lebanon).[3]
- India–Iran cooperation: Chabahar Port, International North-South Transport Corridor (INSTC), and implications of US sanctions on India’s strategic autonomy.
The Core Update: Former US President Donald Trump has reportedly pushed for securing around $100 billion for investments in Venezuela’s oil sector, even as energy major ExxonMobil and others caution that the market remains highly risky due to political instability and sanctions.[2]
Venezuela holds some of the largest proven oil reserves in the world, yet its output has collapsed due to corruption, mismanagement, and international sanctions. Any renewed push by US political actors to tap Venezuelan oil reflects concerns about global energy prices, supply diversification, and geopolitical leverage, especially after disruptions in other energy theatres.[2] At the same time, private firms like Exxon are wary of contract sanctity, expropriation risk, and reputational costs.
For India, which imports crude from a diversified basket, any easing of Venezuelan output constraints can, over time, exert downward pressure on global prices and create alternative sourcing options. Conversely, heightened US–Venezuela frictions or sanctions regimes can tighten markets. Aspirants should integrate this with their understanding of how geopolitical events influence India’s current account deficit, inflation, and rupee stability.
- Concepts: Political risk, resource nationalism, and sanctions in international energy markets.[2]
- Link with Indian Economy: Impact of crude oil prices on CAD, fiscal deficit (through subsidies), and inflation (WPI/CPI).
The Core Update: In Ranchi’s Dhurwa area, the disappearance of two siblings has triggered a bandh call and local protests, prompting BJP leaders to visit the family, while the police have formed a Special Investigation Team (SIT) to step up search operations and probe the incident.[4]
Although this incident is located in Jharkhand, its pattern is highly relevant for both BPSC and JPSC: a local law-and-order crisis quickly acquires political overtones, with opposition parties mobilising protests and the administration responding with an SIT.[4] Such episodes highlight citizens’ trust (or mistrust) in policing, the role of media, and how crime can become a site for competitive politics.
Crucially, the decision to constitute an SIT shows how States use specialised investigative mechanisms to reassure the public and ensure focused inquiry. For aspirants, this is a live example of how the criminal justice system, political accountability, and community relations intersect. In interviews, you may be asked how you would handle communication, crowd management, and victim support in such sensitive cases.
- Law and order is a State subject (List II, Seventh Schedule), but political pressures and media scrutiny strongly influence how cases are investigated.[4]
- Special Investigation Teams (SITs): ad hoc mechanisms formed by State or court orders to handle sensitive or complex cases.
The Core Update: Following the case of the missing siblings, local groups in Dhurwa (Ranchi) have called for a bandh, affecting normal life and prompting enhanced police deployment and political outreach, as authorities balance public order with the right to protest.[4]
Bandhs and local shutdowns remain common instruments of political expression in Jharkhand and Bihar. While they signal democratic mobilisation, they also impose economic and social costs on daily-wage workers, students, and small businesses. In this case, the bandh is tied to a demand for swifter investigation and visible administrative action, illustrating how public pressure can accelerate governance response.[4]
However, the administration must walk a fine line: facilitating peaceful protest (as part of Article 19 rights) while preventing damage to public property and ensuring essential services continue. For a future civil servant, the lesson is to prioritise early communication, community liaison, and preventive policing over merely reactive force.
- Constitutional angle: Article 19(1)(b) – right to assemble peacefully, reasonable restrictions under Article 19(3) to maintain public order.
- Practical governance: use of prohibitory orders (e.g., Section 144 CrPC), dialogue with community leaders, and humane crowd control methods.
The Core Update: Shares of the Indian Energy Exchange (IEX) reportedly fell after the Appellate Tribunal for Electricity (APTEL) postponed hearing on a key case related to ‘market coupling’, an arrangement that could significantly change competition and pricing in India’s power exchanges.[2]
Market coupling refers to a mechanism where a central entity matches bids and offers across multiple power exchanges to arrive at a uniform price, aiming to improve efficiency and reduce volatility. The delay in adjudicating the issue by APTEL has created uncertainty among investors and exchange operators.[2] From a policy lens, the debate is about how much competition vs central coordination is optimal in electricity markets, which are quasi-public goods with strong regulatory oversight.
For India’s broader economic story, power market reform is crucial: robust, transparent price discovery encourages investments in generation (including renewables), improves grid stability, and can lower costs for DISCOMs and consumers over time. Aspirants should relate this to ongoing DISCOM reform, UDAY-type schemes, and the evolution from long-term PPAs to more market-based trading.
- Institutional landscape: CERC, SERCs, APTEL, power exchanges (IEX, PXIL etc.).[2]
- Concept of ‘market coupling’ and how it affects competition, efficiency, and regulatory control in electricity trading.
