🗞️ Why in News January 29, 2026 saw the Economic Survey 2025-26 tabled in Parliament projecting 7.4% real GDP growth, the India-EU Security and Defence Partnership from the 16th EU-India Summit drawing wide attention, a Supreme Court stay on UGC equity regulations, three NITI Aayog circular economy reports, and multiple key appointments and bilateral developments.

Economic Survey 2025-26 — Tabled in Parliament

Finance Minister Nirmala Sitharaman tabled the Economic Survey 2025-26 in Parliament on January 29, 2026, a day before the Union Budget 2026-27. Authored by Chief Economic Adviser (CEA) Dr. V. Anantha Nageswaran (6th CEA; appointed February 2022), the Survey projects 7.4% real GDP growth for FY2025-26 — the fourth consecutive year India is the fastest-growing major economy.

Headline data (all covered in detail in the Jan 30 deep-dive):

  • GDP FY26: 7.4% real growth; GVA: 7.3%
  • FY27 projection: 6.8%–7.2%
  • CPI inflation (Apr–Dec 2025): 1.7% — historic low since CPI series (2012)
  • PFCE (Private Consumption): 61.5% of GDP — 12-year high
  • Forex reserves: USD 701.4 billion — 11 months import cover; covers 94% of external debt
  • Remittances: USD 135.4 billion — India remains world’s largest remittance recipient
  • Gross NPAs: 2.2% (multi-decadal low); Net NPAs: 0.5%
  • Horticulture (362.08 MT) surpassed foodgrain production (3,577.3 LMT) — first time in history
  • Multidimensional poverty: Declined from 55.3% to 11.28%
  • Budget Session 2026-27 commenced January 28, running till April 2 (two phases)

Policy framework introduced: The Survey introduces “Disciplined Swadeshi” — a trade strategy balancing import substitution with global value chain integration (selectively reduce input duties; maintain protection on finished goods).

India-EU Security and Defence Partnership — 16th EU-India Summit

At the 16th EU-India Summit held on January 27, 2026 in New Delhi, India and the European Union signed their first-ever comprehensive Security and Defence Partnership — a landmark in bilateral relations.

Signatories:

  • EAM Dr. S. Jaishankar (India) and EU High Representative/VP Kaja Kallas (EU)
  • Witnessed by PM Narendra Modi, European Council President António Costa, and European Commission President Ursula von der Leyen

What is new:

  • Only the EU’s third Security and Defence Partnership in Asia — after Japan (2023) and South Korea (2024)
  • Five cooperation pillars: Maritime security; Defence industry and technology; Cyber and hybrid threats; Space; Counter-terrorism
  • Annual EU-India Security and Defence Dialogue to be institutionalised
  • Security of Information Agreement to be negotiated — enabling classified material exchange between the two sides
  • “Towards 2030: India-EU Joint Strategic Agenda” adopted — five pillars for the decade ahead

Republic Day context: EU leaders (António Costa and Ursula von der Leyen) attended India’s 77th Republic Day (January 26, 2026) as chief guests — the first time a collective EU leadership has served as chief guest at a Republic Day.

UPSC angle: India-EU defence partnerships are a major shift — the EU traditionally avoided defence ties with individual Asian countries. GS-2 (India-EU relations, Indo-Pacific strategy, NATO/EU security architecture).

Supreme Court Stays UGC (Promotion of Equity) Regulations 2026

A bench of Chief Justice Sanjiv Khanna and Justice Joymalya Bagchi stayed the UGC (Promotion of Equity in Higher Education Institutions) Regulations, 2026 (notified January 13, 2026).

Issues:

  • Clause 3© defined caste-based discrimination only against SC/ST/OBC members — no protection for general category
  • No mechanism to penalise false complaints
  • Court found the regulations “vague” and “susceptible to misuse”

Interim order: 2012 UGC Guidelines to continue until further orders; next hearing March 19, 2026.

About UGC: Established under the UGC Act, 1956; statutory body under Ministry of Education; coordinates and maintains standards of university education. Legislative basis: Entry 66, List I (Union List) of the Seventh Schedule (coordination and standards in higher education).

Kota Ravi Selected as HAL Chairman and Managing Director

The Public Enterprises Selection Board (PESB) selected Kota Ravi as the next Chairman and Managing Director (CMD) of Hindustan Aeronautics Limited (HAL) on January 29, 2026.

Profile:

  • Current position: Director (Operations), HAL
  • Known as the “LCA man” — key role in operationalising the Tejas (Light Combat Aircraft) fleet for the Indian Air Force
  • Appointment effective: May 2026 (upon superannuation of incumbent CMD D.K. Sunil)
  • Selected from a pool of eight candidates by PESB

About HAL:

  • India’s premier aerospace and defence PSU; Ministry of Defence
  • Headquarters: Bengaluru, Karnataka
  • Key products: Tejas (LCA), Dhruv (Advanced Light Helicopter), HJT-16 Kiran, HTT-40 basic trainer
  • Status: Navratna PSU

UPSC relevance: Prelims (PESB’s role in PSU leadership; HAL as Navratna; Tejas aircraft); Mains GS-3 (Defence indigenisation, Make in India in aerospace).

Adani-Embraer MoU — Regional Transport Aircraft for India

Adani Defence and Aerospace and Brazilian aerospace major Embraer signed an MoU in New Delhi for co-development of a made-in-India Regional Transport Aircraft (RTA).

Aircraft specs: ~90 passenger capacity; 500–900 km operational range

Key elements:

  • Final Assembly Line (FAL) in India — Embraer’s first production facility in Asia
  • Maintenance, Repair and Overhaul (MRO), training, and supply chain development in India
  • Aligned with UDAN Scheme (Ude Desh ka Aam Naagrik) — connecting Tier 2/3 cities
  • Under Make in India (Atmanirbhar Bharat in aviation)

About Embraer:

  • Headquartered in São José dos Campos, Brazil; founded 1969; listed on NYSE
  • World’s third-largest commercial aircraft manufacturer (after Boeing and Airbus)
  • Specialises in regional jets (70–130 seats) — the E-jet series

UPSC relevance: Prelims (Embraer country; UDAN scheme); Mains GS-3 (Civil aviation growth, FDI in aerospace, regional connectivity).

RBI Priority Sector Lending Framework — Key Changes

The Reserve Bank of India (RBI) updated its Priority Sector Lending (PSL) framework with changes effective from early 2026:

Key revisions:

  • Small Finance Banks (SFBs): PSL target revised from 75% to 60% of Adjusted Net Bank Credit (ANBC) — to ease compliance burden while maintaining inclusive lending
  • NCDC (National Cooperative Development Corporation): Included as an eligible on-lending entity for PSL classification (enables cooperative credit to flow under PSL)
  • Healthcare loans: Limit raised to ₹12 crore per borrower for healthcare facilities in Tier II–VI centres

PSL basics: RBI mandates that banks lend a set percentage of their ANBC to priority sectors — agriculture (18%), MSMEs, education, housing, renewable energy, weaker sections. Total PSL target: 40% of ANBC for domestic commercial banks; 32% for foreign banks.

UPSC relevance: Prelims (PSL percentages by category; SFB target change); Mains GS-3 (Financial inclusion, agricultural credit, priority sector lending policy).

NITI Aayog Circular Economy Reports — E-Waste, ELVs, and Tyres

NITI Aayog released three reports on circular economy at the International Material Recycling Conference (IMRC) held in Jaipur, Rajasthan:

1. End-of-Life Vehicles (ELVs):

  • ELVs expected to double from 23 million (2025) to 50 million by 2030
  • BS-I vehicles emit 8x more pollutants than BS-VI vehicles
  • Vehicle Scrappage Policy (2021): Vehicles over 20 years (private) and 15 years (commercial) mandated for scrapping

2. Waste Tyres:

  • India generates 1.5–2 million tonnes of waste tyres annually
  • India is the world’s 3rd largest tyre producer and consumer (after China and USA)

3. E-Waste and Lithium-Ion Batteries:

  • India’s e-waste: projected to grow from 6.19 MMT (million metric tonnes) to 14 MMT by 2030
  • Annual e-waste economic value: ₹51,000 crore — only 18% currently recovered (60% extractable)
  • Governance: E-Waste Management Rules, 2022 (under Environment Protection Act, 1986); Extended Producer Responsibility (EPR) framework

UPSC relevance: Prelims (e-waste MMT projections, India tyre rank, ELV numbers); Mains GS-3 (Circular economy, Urban mining, e-waste management, EPR framework).

Smart Fishing Harbour — Mayabunder, Andaman and Nicobar Islands

The Department of Fisheries approved development of a smart integrated fishing harbour at Mayabunder, Andaman and Nicobar Islands under the Pradhan Mantri Matsya Sampada Yojana (PMMSY).

Key facts:

  • Project cost: ₹199.24 crore (100% Central Financial Assistance)
  • Vessel capacity: 430 fishing vessels; annual fish landing: 9,900 tonnes
  • Leverages the A&N Exclusive Economic Zone (EEZ) of 6 lakh sq km — estimated 60,000 MT tuna potential
  • Features IoT-enabled systems and digital traceability under “SmartBlue” platform

India’s fisheries growth: Production rose from 96 lakh tonnes (2013-14) to 197.75 lakh tonnes (2024-25)

About PMMSY: Pradhan Mantri Matsya Sampada Yojana — flagship fisheries scheme; 2020; Rs 20,050 crore outlay (largest-ever investment in fisheries sector); under Ministry of Fisheries, Animal Husbandry and Dairying.

OCA President — Randhir Singh Resigns; Sheikh Joaan Elected

Randhir Singh resigned as President of the Olympic Council of Asia (OCA) due to health reasons. Sheikh Joaan bin Hamad Al Thani of Qatar was elected as the new OCA President.

Randhir Singh — significance:

  • India’s first-ever OCA President (elected September 2024)
  • Earlier served as IOA Secretary General (1987–2012) and Acting OCA President (2021–24)

About OCA:

  • Governs the Asian Games (Asiad)
  • 45 member National Olympic Committees
  • Headquarters: Kuwait City, Kuwait
  • Founded: 1982 by Sheikh Fahad Al-Ahmad Al-Sabah

UPSC relevance: Prelims (OCA headquarters, founding year, India’s first OCA president, Asian Games governing body).

Kerala — First Indian State to Declare a State Microbe

Kerala became the first Indian state to declare an official State Microbe — Bacillus subtilis — alongside the launch of a Centre of Excellence in Microbiome in the state.

About Bacillus subtilis:

  • A beneficial, spore-forming probiotic bacterium found in soil and fermented foods
  • Applications: pharmaceuticals (antibiotics, probiotics), food processing, sustainable agriculture (as biopesticide and plant growth promoter), industrial enzymes

Significance: Kerala’s declaration mirrors other state symbols (state bird, animal, tree, flower) and elevates microbiology’s role in science governance. State Microbe aligns with Kerala’s growing biotech industry.

International Data Privacy Day — DPDP Act in Focus

January 28 is observed as International Data Privacy Day (also called Data Protection Day in Europe). India highlighted progress on its Digital Personal Data Protection (DPDP) Act, 2023 and DPDP Rules, 2025.

International context: The Day commemorates the signing of Convention 108 — the first binding international data protection treaty — on January 28, 1981, by the Council of Europe.

India’s DPDP Act, 2023:

  • Enacted by Parliament (August 2023)
  • Framework: Consent-based data processing; defines data principal (citizen), data fiduciary (company), and data processor
  • Enforcement body: Data Protection Board of India (adjudicatory body under DPDP Act)
  • Based partly on recommendations of the Justice Srikrishna Committee (2018) — though final Act differs significantly on several provisions
  • India’s digital scale: 101.7 crore broadband users; third-largest digitised economy

Persons in News

PFRDA SAARG Committee:

  • PFRDA (Pension Fund Regulatory and Development Authority) constituted the Strategic Asset Allocation and Risk Governance (SAARG) Committee
  • Chair: Narayan Ramachandran (former CEO, Morgan Stanley India)
  • 10-member committee; mandate to modernise NPS investment framework; submit recommendations within 9 months
  • PFRDA statutory basis: PFRDA Act, 2013; PFRDA Chairman: Sivasubramanian Ramann
  • NPS: Defined Contribution pension for central government employees (mandatory from January 1, 2004)

UPSC Relevance

Prelims: Economic Survey 2025-26 (Jan 29; FM Nirmala Sitharaman; CEA Dr. V. Anantha Nageswaran; GDP 7.4%; CPI 1.7%; remittances USD 135.4 bn largest in world; forex USD 701.4 bn; PFCE 61.5%; gross NPAs 2.2%; poverty 11.28%; horticulture > foodgrains for first time); India-EU 16th Summit (Jan 27; Security & Defence Partnership; Kaja Kallas + Jaishankar; 3rd EU-Asia defence pact; 77th Republic Day EU chief guests); SC stays UGC Equity Regulations 2026 (CJI Sanjiv Khanna; 2012 rules continue); Kota Ravi as HAL CMD (PESB; Navratna; Tejas = LCA); Adani-Embraer RTA MoU (90-pax; FAL India; Embraer = Brazil 1969); RBI PSL changes (SFBs 75%→60%; NCDC added; healthcare ₹12 cr); NITI Aayog e-waste 6.19→14 MMT by 2030; India tyre 3rd globally; ELVs 23mn→50mn by 2030; PMMSY Mayabunder ₹199.24 cr; A&N EEZ 6 lakh sq km; OCA (Kuwait; 45 members; Randhir Singh first Indian OCA President; Sheikh Joaan new president); Kerala first State Microbe — Bacillus subtilis; DPDP Act 2023; Convention 108 (Jan 28, 1981; first binding data treaty); PFRDA SAARG Committee (Narayan Ramachandran; Sivasubramanian Ramann PFRDA Chair).

Mains GS-2: India-EU Security and Defence Partnership — significance for India’s strategic autonomy vs bloc-alignment debate; UGC equity regulations — judicial review of delegated legislation, equity vs equality; DPDP Act — right to privacy (Puttaswamy 2017), consent framework, Data Protection Board. GS-3: Economic Survey 2025-26 — “Disciplined Swadeshi” trade framework; circular economy — e-waste EPR, ELV scrappage policy; blue economy — PMMSY, A&N fisheries potential; NPS reforms — pension architecture, PFRDA role.

📌 Facts Corner — Knowledgepedia

Economic Survey 2025-26 (Key Numbers):

  • Tabled: January 29, 2026 by FM Nirmala Sitharaman; CEA: Dr. V. Anantha Nageswaran
  • Real GDP FY26: 7.4% (4th consecutive year fastest-growing major economy)
  • FY27 projection: 6.8%–7.2%; GVA FY26: 7.3%
  • CPI Apr-Dec 2025: 1.7% — historic low; Food inflation Dec 2025: -2.71% (deflation)
  • PFCE: 61.5% of GDP — 12-year high; GFCF growth: 7.8%
  • Gross NPAs: 2.2% (multi-decadal low); Net NPAs: 0.5%
  • Forex reserves: USD 701.4 billion (11 months imports; 94% external debt)
  • Remittances FY25: USD 135.4 billion — India = world’s largest recipient
  • Services exports: USD 387.6 bn; Merchandise export share: 1.8% of global trade
  • e-Shram registrations: 31 crore workers (54% women)
  • Multidimensional poverty: 11.28% (down from 55.3%)
  • Horticulture (362.08 MT) > Foodgrain (357.73 MT) — first time in history

India-EU Security & Defence Partnership (Jan 27, 2026):

  • Summit: 16th EU-India Summit, New Delhi
  • Signed by: Dr. S. Jaishankar (India) + Kaja Kallas (EU HR/VP)
  • Witnessed by: PM Modi + António Costa (European Council President) + Ursula von der Leyen (EC President)
  • EU’s 3rd Asia defence pact (after Japan 2023, South Korea 2024)
  • Five pillars: Maritime security; Defence industry; Cyber/hybrid; Space; Counter-terrorism
  • Republic Day 2026: 77th Republic Day (Jan 26, 2026); Chief Guest: EU leadership

HAL / Kota Ravi:

  • Selected by: PESB (Public Enterprises Selection Board)
  • Role: Next CMD of HAL (Hindustan Aeronautics Limited)
  • HAL HQ: Bengaluru; Status: Navratna PSU; Ministry: Defence
  • Key products: Tejas (LCA), Dhruv (ALH), HJT-16 Kiran, HTT-40

Adani-Embraer RTA MoU:

  • Aircraft: ~90 passengers; 500–900 km range
  • First FAL (Final Assembly Line) for Embraer in Asia
  • Embraer HQ: São José dos Campos, Brazil; Founded: 1969
  • Supports: UDAN Scheme (regional connectivity, Tier 2/3 cities)

Circular Economy — NITI Aayog Reports (Jan 29):

  • E-waste: India 6.19 MMT → 14 MMT by 2030; economic value ₹51,000 crore; only 18% recovered
  • Waste tyres: 1.5–2 mn tonnes/year; India = 3rd largest tyre producer and consumer
  • ELVs (End-of-Life Vehicles): 23 mn (2025) → 50 mn by 2030; BS-I emits 8x more than BS-VI
  • Governance: E-Waste Management Rules, 2022; EPR (Extended Producer Responsibility)

PMMSY — Mayabunder Smart Harbour:

  • Cost: ₹199.24 crore; 100% Central Financial Assistance
  • Capacity: 430 vessels; 9,900 tonnes annual fish landing
  • A&N EEZ: 6 lakh sq km; Tuna potential: 60,000 MT/year
  • India fisheries: 197.75 lakh tonnes (2024-25), up from 96 lakh tonnes (2013-14)

OCA:

  • Full name: Olympic Council of Asia — governs Asian Games
  • HQ: Kuwait City, Kuwait; Members: 45 National Olympic Committees; Founded: 1982
  • Randhir Singh: India’s first OCA President (elected Sep 2024); resigned health reasons Jan 2026
  • New OCA President: Sheikh Joaan bin Hamad Al Thani (Qatar)

Kerala State Microbe:

  • First Indian state to declare a State Microbe: Kerala
  • Declared microbe: Bacillus subtilis (probiotic; soil bacterium; used in agriculture + pharma)

DPDP Act 2023:

  • Full name: Digital Personal Data Protection Act, 2023
  • Enforcement body: Data Protection Board of India
  • Convention 108: First binding data protection treaty; signed January 28, 1981; Council of Europe
  • International Data Privacy Day: January 28 (annually)
  • India broadband users: 101.7 crore

RBI PSL Changes:

  • Total PSL target (domestic commercial banks): 40% of ANBC
  • Agriculture sub-target: 18% of ANBC
  • SFBs target: revised from 75% → 60% of ANBC
  • NCDC added as on-lending entity; healthcare loans raised to ₹12 crore/borrower

Other Relevant Facts:

  • Budget Session 2026: Started January 28, 2026; runs till April 2, 2026
  • PESB: Public Enterprises Selection Board — recommends senior management appointments in Central CPSEs; under Department of Public Enterprises (Ministry of Finance)
  • PFRDA Act: 2013; governs NPS; PFRDA Chair: Sivasubramanian Ramann
  • NPS: Mandatory for central govt employees from January 1, 2004 (Old Pension Scheme closed from that date)
  • SAARG Committee chair: Narayan Ramachandran (former CEO, Morgan Stanley India)

Sources: AffairsCloud, InsightsIAS, PIB, PRS India, The Hindu