1. MOEFCC EXPANDS CARBON CREDIT TRADING SCHEME (CCTS) TO NEW INDUSTRIAL SECTORS
SUBJECT: POLITY & ENVIRONMENT
- The Ministry of Environment, Forest and Climate Change (MoEFCC) has officially expanded the scope of the Carbon Credit Trading Scheme (CCTS), bringing 208 new obligated entities under its ambit.
- New sectors added to the compliance list include Petroleum Refineries, Petrochemicals, Textiles, and Secondary Aluminium, totaling 490 entities now required to meet Greenhouse Gas Emission Intensity (GEI) targets.
- This transition marks a shift from the previous ‘Perform, Achieve, and Trade’ (PAT) scheme to a comprehensive market-based mechanism where Carbon Credit Certificates (CCC) are traded.
- Each CCC represents the reduction of one tonne of carbon dioxide equivalent ($tCO_2e$), incentivizing industries to adopt cleaner technologies.
- The move is aligned with India’s updated Nationally Determined Contributions (NDCs) to achieve Net-Zero emissions by 2070.
- Concepts: Article 253 – Power of Parliament to legislate for giving effect to international agreements; Environmental Governance – Role of statutory bodies in regulating industrial externalities.
2. CHIEF MINISTER STALIN DEFENDS “TAMIL NADU MODEL” IN ASSEMBLY ADDRESS
SUBJECT: NATIONAL (TAMIL NADU)
- Chief Minister M.K. Stalin, replying to the Governor’s address in the Tamil Nadu Assembly, declared that the “Dravidian Model” of governance has set a national benchmark, with even the Union Government adopting its flagship schemes.
- He highlighted that the ‘Makkalai Thedi Maruthuvam’ (Healthcare at Doorsteps) scheme won the U.N. Interagency Task Force Award (2024), validating the state’s public health success.
- The CM noted that the state cooperative sector received awards from the Union Home Ministry, contrasting this with continued criticism from the State Governor regarding administrative performance.
- In a political assertion, the Chief Minister expressed confidence that his government would return to power in the 2026 Assembly Elections, citing five years of “conscience-led” governance.
- The session was notable for the absence of AIADMK and BJP members, who boycotted the reply to the Governor’s address.
- Concepts: Article 176 – Special address by the Governor at the commencement of the first session each year; Federalism – The evolving dynamic between the Governor (Constitutional Head) and the Chief Minister (Executive Head).
3. EU LEADERS ARRIVE AS CHIEF GUESTS FOR REPUBLIC DAY; 16TH INDIA-EU SUMMIT SET
SUBJECT: INTERNATIONAL
- European Council President António Costa and European Commission President Ursula von der Leyen arrive in New Delhi for a state visit from January 25–27, 2026, serving as Chief Guests for the 77th Republic Day.
- The visit will culminate in the 16th India-EU Summit on January 27, where negotiations for the long-pending Free Trade Agreement (FTA) are expected to reach a decisive “breakthrough” phase.
- Key discussions will center on the Carbon Border Adjustment Mechanism (CBAM), with India seeking to mitigate trade barriers on its steel and cement exports.
- A new Security and Defence Partnership (SDP) is likely to be unveiled, granting Indian companies access to the €150 billion SAFE (Security Action for Europe) defence fund.
- For the first time, a small EU military contingent and flags of EU naval missions (like Operation Atalanta) will participate in the Republic Day parade.
- Concepts: Strategic Autonomy – India’s pursuit of diversified global partnerships; Bilateral Investment Treaties (BIT) – Essential for protecting cross-border capital flow within the FTA framework.
4. IMF UPGRADES INDIA’S FY26 GDP GROWTH PROJECTION TO 7.3%
SUBJECT: ECONOMY
- The International Monetary Fund (IMF), in its January 2026 World Economic Outlook update, revised India’s GDP growth forecast for 2025-26 upward to 7.3% from its previous estimate of 6.6%.
- The revision is attributed to “strong momentum” in the final quarters of the fiscal year and robust domestic demand fueled by tax cuts and increased rural income.
- This aligns with the National Statistical Office (NSO) First Advance Estimates, which projected a 7.4% growth, maintaining India’s status as the world’s fastest-growing major economy.
- India is also preparing to transition from GDP to Net Domestic Product (NDP) as its primary economic measure by 2029-30 to better account for capital depreciation and environmental costs.
- The services sector continues to be the primary driver, though manufacturing is seeing an uptick due to the Production Linked Incentive (PLI) schemes.
- Concepts: System of National Accounts (SNA) 2025 – New UN standards for measuring economic activity; Fiscal Consolidation – Balancing high growth with the 4.5% fiscal deficit target.
5. CDS RELEASES ‘MILITARY QUANTUM MISSION POLICY FRAMEWORK’ FOR DEFENCE MODERNIZATION
SUBJECT: DEFENCE
- Chief of Defence Staff (CDS) General Anil Chauhan released a comprehensive roadmap for integrating quantum technologies across the Indian Armed Forces to ensure dominance in future electronic warfare.
- The framework prioritizes Quantum Key Distribution (QKD) for ultra-secure communications and quantum-based sensing for detecting stealth platforms.
- India’s defence capital outlay for FY 2025-26 has reached ₹1.8 lakh crore, with a specific focus on the indigenization of 100% of the negative import list by the end of the year.
- The Ministry of Defence confirmed that private sector participation in defence production has risen to 23%, supported by over 16,000 MSMEs within the domestic ecosystem.
- Foundation stones were laid for a new Helicopter MRO (Maintenance, Repair, and Overhaul) Hub in Assam to support the Army and IAF’s localized fleet sustainment.
- Concepts: National Quantum Mission (NQM) – The overarching civilian-military tech umbrella; iDEX (Innovations for Defence Excellence) – Facilitating startup entry into high-tech military hardware.
