Current affairs
News for UPSC, SSC and defence exams, with the reason it matters.
CCEA approves Fairfax as strategic buyer of 60.72% IDBI Bank stake for ₹52,878 crore
- The Cabinet Committee on Economic Affairs approved the strategic sale of IDBI Bank on 14 October 2026.
- The buyer is 10955230 Canada Inc., whose parent is Fairfax Financial Holdings Ltd. The price is ₹52,878 crore for 60.72% equity.
- The stake comes from the Government of India (30.48%) and LIC (30.24%). The Government keeps 15% and LIC keeps 19%.
Why it matters
[Policy] This is the first full strategic sale of a public-sector bank. It was decided through a two-stage competitive bid. RBI had put IDBI under Prompt Corrective Action in May 2017 and lifted the curbs in March 2021. The sale shows how disinvestment is moving to ownership transfer. Use it in GS-3 on banking reform and public-sector privatisation.
RBI tightens rupee derivative rules, raises daily CRR maintenance to 99% and opens dollar window for oil firms
- In October 2026, the RBI cut the limit for forex derivative deals with no underlying exposure from $100 million to $5 million.
- It also created a Foreign Exchange Risk Reserve (FERR). Banks must hold cash equal to 20% of qualifying hedge contracts above $2 million.
- From 16 October 2026, banks must maintain 99% of the required CRR every day, up from 90%.
Why it matters
[Policy] These steps defend the rupee and drain surplus liquidity. They follow the repo rate hike of 7 October 2026. The CRR is the share of deposits banks must keep with the RBI. A higher daily CRR requirement leaves banks with less money to lend. The FERR makes speculative hedging costlier. Link this to GS-3 monetary policy, exchange rate management and the RBI's toolkit.
RBI raises repo rate 25 bps to 5.50% and shifts stance to ‘calibrated tightening’
- On 7 October 2026, the MPC voted unanimously to raise the repo rate by 25 bps to 5.50%.
- The SDF rate is now 5.25%. The MSF rate and Bank Rate are 5.75%.
- The stance changed to calibrated tightening. Two members, Nagesh Kumar and Ram Singh, wanted to keep it neutral.
Why it matters
[Policy] This is a clear change of direction. Rate cuts are now off the table, and the next move can only be a hike or a pause. Inflation is rising because of a deficient monsoon, El Niño and high energy prices. Exams ask about the repo rate, SDF, MSF and Bank Rate corridor. Mains answers can use the supply-shock debate: the MPC mainly curbs second-round effects. This links to GS-3 inflation and monetary policy.
VB-G RAM G: Centre notifies 375 permissible rural works, 41% more than under MGNREGA
- On 6 October 2026, PIB said the Rural Development Ministry had notified 375 permissible works under the VB-G RAM G Act, 2025.
- That is 41% more than the 266 works allowed under the previous framework.
- The works sit under four pillars: Water Security (128), Core Rural Infrastructure (111), Livelihood (98) and Disaster Preparedness (38).
Why it matters
[Policy] This schedule is the list of assets that wage work can build under the law that replaced MGNREGA on 1 July 2026. Disaster preparedness and extreme-weather works get their own category for the first time. Every work must come from a Viksit Gram Panchayat Plan approved by the Gram Sabha. Works will be tracked on the Viksit Bharat National Rural Infrastructure Stack. This links to GS-2 welfare schemes and GS-3 rural development.
Asked before: CDS I 2020 asked which of the given options is not an objective of MGNREGA, the scheme VB-G RAM G replaced.
Cabinet approves Integrated Transport & Logistics Authority to plan all transport modes together
- On 6 October 2026, the Union Cabinet approved setting up the Integrated Transport & Logistics Authority (ITLA).
- ITLA is a Special Purpose Vehicle and will be the apex body for transport and logistics planning.
- It will prepare a National Transport Master Plan with a horizon of ten years or more.
Why it matters
[Policy] Roads, railways, ports, airports and waterways are planned by separate ministries today. ITLA is meant to end this fragmented planning with one multimodal master plan. It will build a National Transport Data Repository from e-way bill, FASTag and Vahan data. It complements PM GatiShakti and the National Logistics Policy, 2022. This links to GS-3 infrastructure and logistics costs.
Cabinet commits ₹10,000 crore to an SME Growth Fund for equity in small and medium firms
- On 6 October 2026, the Union Cabinet approved a ₹10,000 crore commitment to the SME Growth Fund (SGF).
- The money goes to an Alternative Investment Fund that makes direct equity investments in SMEs.
- Most of the fund will go to small and medium manufacturing firms.
Why it matters
[Policy] Most existing equity funds back early-stage and micro firms. Small and medium firms that want to scale find little long-term risk capital. The SGF fills this gap with patient growth equity, as promised in Para 28 of Union Budget 2026-27. Since April 2025, a small enterprise means investment up to ₹25 crore and turnover up to ₹100 crore. This links to GS-3 MSMEs and industrial policy.
Cabinet approves Green Energy Corridor Phase-III with 50 GWh battery storage
- The Union Cabinet approved Green Energy Corridor Phase-III (GEC-III) on 30 September 2026.
- It will strengthen intra-state transmission to carry up to 135 GW of renewable power.
- It also adds 50 GWh of Battery Energy Storage Systems (BESS) for grid flexibility.
Why it matters
[Policy] Solar and wind power is useless if it cannot reach consumers. GEC-III builds the state-level wires and adds battery storage for non-solar hours. It supports the 900 GW non-fossil target for 2035. Expect questions on GEC phases and BESS.
Ministry of Power notifies new CAFE fuel-economy norms for cars from April 2027
- The Ministry of Power notified new Corporate Average Fuel Economy (CAFE) norms on 30 September 2026.
- They apply to new passenger vehicles from 1 April 2027 to 31 March 2032.
- The fuel benchmark tightens from 3.996 to 3.3273 litres per 100 km, about 16.7% better.
Why it matters
[Policy] CAFE sets one fuel-economy average for each carmaker's whole fleet. The final rules now replace the July 2026 draft. They reward EVs, hybrids and biofuels inside the compliance maths. The Bureau of Energy Efficiency runs the credit buyout.
Rabi MSP 2027-28: wheat up only ₹25 to ₹2,610; safflower gets the biggest hike
- On 30 September 2026, the CCEA raised wheat MSP by ₹25 to ₹2,610 per quintal for 2027-28.
- This is wheat's smallest absolute MSP hike since 2010-11.
- Safflower got the biggest hike, ₹675, taking it to ₹7,215 per quintal.
Why it matters
[Data] MSP figures change every season, so exams test the latest numbers. The tiny wheat hike and big oilseed hikes signal a push towards oilseeds. The rule of at least 1.5 times cost dates from the 2018-19 Budget.
Asked before: CDS (II) 2018 asked which crop got the largest percentage MSP increase.
GOBARdhan Central Sector Scheme launched with ₹23,731 crore for compressed biogas
- Petroleum Minister Hardeep Singh Puri launched the GOBARdhan Central Sector Scheme on 1 October 2026.
- The Cabinet approved it on 6 August 2026, with an outlay of ₹23,731 crore over ten years.
- It aims to raise compressed biogas (CBG) output nearly ten-fold, to about 5 MMSCMD.
Why it matters
[Policy] India imports nearly half of its natural gas. This scheme turns farm and cattle waste into home-grown gas. It also makes the Petroleum Ministry the single nodal ministry for biogas. Expect questions on the blending targets and the six support tools.
Asked before: NDA (I & II) 2020 asked which gas makes up the largest share of biogas.
NSO releases district-level labour market indicators for the first time
- The National Statistical Office released district-level labour market indicators for the first time.
- About 57.8% of districts had a female Labour Force Participation Rate (LFPR) of 40% or more.
- Among the 100 most populous districts, Surat had the highest LFPR and WPR. Darbhanga had the lowest.
Why it matters
[First] Labour data was earlier available mainly at the national and state level. District figures help local job planning. Know LFPR, WPR and NEET as terms.
India and Bhutan complete two-way UPI payment link
- EAM S. Jaishankar and Bhutan PM Tshering Tobgay launched the second phase of international UPI in Thimphu.
- Bhutanese citizens visiting India can now pay with UPI.
- With UPI already in use in Bhutan, this completes two-way UPI payment links.
Why it matters
[First] UPI is run by NPCI. Its spread abroad is a common exam theme. Bhutan is now linked both ways.
Cabinet raises EPFO wage ceiling to ₹25,000 a month from ₹15,000
- On 16 September 2026, the Union Cabinet raised EPFO's mandatory wage ceiling from ₹15,000 to ₹25,000 a month.
- It took effect on 17 September, Vishwakarma Jayanti.
- Over 51 lakh more workers are expected to get mandatory EPF, EPS and EDLI cover.
Why it matters
[Policy] More workers now get pension and insurance cover. Pension contributions rise too, so some take-home pay may fall. Trade unions called it too little, too late.
UPI merchant payments above ₹2,000 to carry 0.4% MDR from 15 October 2026
- On 15 September 2026, the government set a 0.4% Merchant Discount Rate on some UPI payments.
- It applies to merchant payments above ₹2,000, from 15 October 2026.
- Person-to-person transfers and small merchant payments stay free. Customers pay no charge.
Why it matters
[Policy] The government had paid about ₹2,000 crore a year to keep UPI free for merchants. A parliamentary panel said zero MDR strained public finances. Traders and opposition parties have opposed the fee.
Asked before: UPSC Prelims 2018 asked what the term 'Merchant Discount Rate' describes.
World Circular Economy Forum held in India for the first time, at Gandhinagar
- The 10th World Circular Economy Forum (WCEF 2026) opened at Mahatma Mandir, Gandhinagar.
- It is the first time the forum has been held in India.
- Finland's innovation fund Sitra co-organised it with the Environment Ministry, the CPCB and the Gujarat government.
Why it matters
[First] A circular economy reuses, repairs and recycles instead of throwing away. India's EPR rules and Mission LiFE are linked ideas.
WPI inflation rises to 9.92% in August 2026, fuel and power at 22.93%
- On 14 September 2026, data showed WPI inflation at 9.92% in August, up from 9.78% in July.
- Fuel and power inflation was 22.93%. Manufactured items hit a series high of 8.37%.
- Food index inflation rose to 7.05%.
Why it matters
[Data] Wholesale inflation near 10% is far above retail CPI inflation of 4.82%. The gap shows costs rising for producers before shoppers. The Commerce Ministry releases WPI. The MoSPI releases CPI.
Asked before: CDS (II) 2023 asked which factors raised wholesale price inflation in India in 2021-22.
Draft Seeds Bill to replace the Seeds Act, 1966; traditional seeds to stay free of registration
- On 10 September 2026, Agriculture Minister Shivraj Singh Chouhan met about 20 farmer groups on the draft Seeds Bill.
- The Bill would replace the Seeds Act, 1966. About 70% of seeds used are outside the old law.
- Farmers can still use, exchange and sell traditional seeds. Registering them will be voluntary.
Why it matters
[Policy] Fake seeds cause big crop losses for farmers. The new law aims to cover more seed and track it from source to sale. Farmers' right to save and share seed is a core exam point, as under the PPV&FR Act, 2001.
Centre amends E-Commerce Rules: prior price must be shown, sponsored listings labelled
- The Consumer Protection (E-Commerce) (Amendment) Rules, 2026 amend the 2020 Rules.
- A discount must show both the reduced price and the prior price, the lowest price in the past 30 days.
- Sponsored listings must carry a clear label, and search results must not be manipulated.
Why it matters
[Economy] The 2020 Rules were made under the Consumer Protection Act, 2019. In 2025, about 29% of National Consumer Helpline complaints were about e-commerce.
Japan’s JCR upgrades India’s sovereign credit rating to ‘A-‘
- On 2 September 2026, the Japan Credit Rating Agency raised India's rating one notch, from BBB+ to A-.
- The upgrade covers India's long-term foreign- and local-currency issuer ratings.
- JCR cited growth near 7%, digital public infrastructure, GST and bank NPAs below 2%.
Why it matters
[Data] A higher sovereign rating can lower the cost of government borrowing. The move lifts India out of the BBB band with JCR. Exams test which agencies rate India and why ratings matter.
Asked before: CDS (II) 2016 asked which of the listed bodies are credit rating agencies in India.
India’s GDP grows 7.8% in April-June 2026 quarter (Q1 FY27)
- India's GDP grew 7.8% in April-June 2026, the first quarter of FY27.
- It was faster than 6.9% in Q1 of last year.
- It was slower than 8.6% in January-March 2026.
Why it matters
[Data] Quarterly GDP data is released by the NSO under MoSPI. A high base can make one sector shrink, as in mining.
Asked before: UPSC Mains 2021 (GS-III) asked how India's GDP computing method changed after 2015.
India’s forex reserves hit a record $729.3 billion
- India's foreign exchange reserves rose by $12.4 billion to a record $729.3 billion in the week ended 21 August 2026.
- Foreign currency assets, the largest part, rose to $591.3 billion.
- Gold reserves rose to $114.2 billion.
Why it matters
[Indian Economy] Forex reserves have four parts: foreign currency assets, gold, SDRs and the IMF reserve tranche. The RBI uses them to steady the rupee and pay for imports.
Gross FDI inflows hit a 15-year high of $30.7 billion in April-June 2026
- India got $30.7 billion in gross FDI in April-June 2026, as per RBI data.
- It is the highest quarterly inflow in data going back 15 years.
- Net FDI for the quarter was $7.8 billion, the highest since June 2022.
Why it matters
[Data] Gross and net FDI are different measures. Gross counts all money coming in. Net subtracts repatriation and outward FDI by Indian firms.
Asked before: CDS (I) 2022 asked which kind of investment counts as Foreign Direct Investment.
India’s domestic defence production hits a record Rs 1.78 lakh crore in 2025-26
- India's domestic defence production reached a record Rs 1.78 lakh crore in 2025-26.
- It was about Rs 43,000 crore in 2013-14.
- Defence Production Secretary Sanjeev Kumar gave the figure at a national aerospace and defence manufacturing conference in New Delhi.
Why it matters
[Indian Economy] Higher home production means India buys fewer weapons abroad and saves foreign exchange. It is the core aim of Atmanirbhar Bharat in defence.
29 FDI projects worth Rs 4,896 crore come in under eased Press Note 3 rule allowing 10% land-border ownership
- Press Note 3 of 2020 required government approval for FDI from countries sharing a land border with India.
- A March 2026 amendment lets firms with up to 10% land-border ownership use the automatic route.
- By 20 August 2026, 29 investments worth Rs 4,895.65 crore had come in under the revised rule.
Why it matters
[Policy] China is the largest investor among India's land neighbours. The 2020 rule caught even tiny Chinese stakes. The 10% threshold keeps security screening for big stakes but speeds up small ones.
Asked before: UPSC CSP 2020 asked about the major characteristic of FDI in India.
CBDT notifies FAST-DS, a foreign asset disclosure scheme for small taxpayers
- The Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS) opened on 16 August 2026.
- Declarations can be made online until 31 December 2026.
- Undisclosed assets up to ₹1 crore attract an effective 60% tax.
Why it matters
[Economy] It targets students, young professionals and returning NRIs. Declarants get immunity from prosecution under the Black Money Act, 2015. It was announced in the 2026-27 Budget.
Asked before: UPSC Prelims 2021 asked about the main worry caused by black money in India.
India’s defence production reaches record ₹1.78 lakh crore in 2025-26
- Defence production rose from ₹46,000 crore in 2014 to ₹1.78 lakh crore in 2025-26.
- Public sector units made about 76%; the private sector made 24%.
- Defence exports hit a record ₹38,424 crore in 2025-26.
Why it matters
[Security] Higher home production cuts import dependence. India now has 145 defence exporters selling to over 80 countries. Rajnath Singh shared the data on 14 August 2026.
WPI inflation eases to 9.78% in July 2026, first fall under the new base year
- WPI inflation eased to 9.78% in July 2026 from 9.87% in June.
- It is the first month-on-month fall under the new 2022-23 base year.
- Fuel and power inflation fell to 20.05% from 27.41%.
Why it matters
[Economy] The West Asia war and the Hormuz blockade pushed up crude and fertiliser prices. WPI tracks producer-level prices. The gap with CPI at 4.45% shows costs not yet passed on to shoppers.
Asked before: CDS II 2023 asked which factors raised Wholesale Price Inflation in 2021-22.
Parliament passes MMDR Amendment Bill limiting State taxes on mineral rights
- The Lok Sabha passed the Bill on 12 August and the Rajya Sabha on 13 August 2026.
- It restricts States' powers to tax mineral rights and mineral-bearing land.
- The Centre says it ensures uniform mineral rates across the country.
Why it matters
[Federalism] The Opposition said the Bill hurts fiscal federalism. The Centre said States now get about 88% of mineral revenue. The debate links to the 2024 Supreme Court ruling that let States tax mineral rights.
Parliament passes NCDC (Amendment) Bill to widen lending to the cooperative sector
- The Lok Sabha passed the Bill on 11 August and the Rajya Sabha on 12 August 2026.
- It amends the National Co-operative Development Corporation Act, 1962.
- NCDC can now give loans and grants directly to cooperative societies.
Why it matters
[Economy] Many agencies that help cooperatives are not registered as cooperatives. NCDC could not fund them before. The change widens credit for the cooperative sector without new budget support.
Retail inflation rises to a 19-month high of 4.45% in July 2026
- CPI inflation rose to 4.45% in July 2026, up from 4.38% in June.
- It is the highest level in 19 months.
- Food and beverages inflation rose to 5.2%.
Why it matters
[Economy] CPI is the RBI's inflation target measure. The target is 4%, with a band of 2% to 6%. Inflation is still inside the band but rising.
Asked before: UPSC Prelims 2015 asked which body brings out the CPI for Industrial Workers.