1. Appropriation Bill and Economic Stability Fund in Parliament
SUBJECT: POLITY
- Union Finance Minister Nirmala Sitharaman moved the Appropriation Bill, 2026 in the Lok Sabha to authorize the spending of supplementary grants for the financial year 2025-26.
- The government announced the creation of a ₹1 lakh crore Economic Stability Fund to insulate the Indian economy from the volatile energy prices caused by the ongoing West Asian conflict.
- In the Rajya Sabha, a Private Member’s Bill titled ‘Climate Resilient Agriculture and Farmer Protection Bill 2025’ was introduced, emphasizing federal cooperation in disaster mitigation.
- Discussions were held regarding the Minimum Support Price (MSP) guarantee, with opposition members seeking a statutory backing to ensure price security for farmers.
- The Ministry of Law and Justice briefed the house on the progress of e-Courts Phase III, aiming for a paperless and digitally integrated judicial system by 2027.
Concepts:
- Article 114: Relates to the Appropriation Bill; no money can be withdrawn from the Consolidated Fund of India without this act.
- Supplementary Demand for Grants: Article 115; used when the amount authorized by the Parliament through the Appropriation Act for the current financial year is found to be insufficient.
2. Energy Security and the Essential Services Maintenance Act
SUBJECT: NATIONAL ISSUES
- Due to the escalating Iran-Israel conflict, India has invoked the Essential Services Maintenance Act (ESMA), 1968 to prevent disruptions in the supply and distribution of petroleum products and LPG.
- The Ministry of Home Affairs directed the Indian Coast Guard to provide “Safe Passage” for Indian-flagged oil tankers traversing the Strait of Hormuz amid rising maritime tensions.
- The Chhattisgarh Cabinet has officially cleared the draft for the ‘Freedom of Religion Bill 2026’, which proposes stringent measures against forced religious conversions.
- Indian Railways successfully completed the deployment of Kavach 4.0 (Automatic Train Protection system) across the high-density Delhi-Mumbai corridor, covering over 1,400 km.
- The Ministry of Environment, Forest and Climate Change released new guidelines for Deep Sea Mining, balancing mineral extraction needs with the preservation of marine biodiversity.
Concepts:
- ESMA: A law that gives the government power to prohibit strikes in certain “essential services” to ensure normal life is not disrupted.
- Kavach: An indigenously developed ATP system designed to prevent train collisions by automatically applying brakes if the driver fails to do so.
3. Shift in Global Trade: India Surpasses China in Cotton Exports to the U.S.
SUBJECT: INTERNATIONAL
- India has emerged as the largest exporter of cotton products to the United States, overtaking China for the first time in a decade, aided by the U.S. ‘Uyghur Forced Labor Prevention Act’ (UFLPA) which restricts Chinese textiles.
- External Affairs Minister S. Jaishankar held a high-level dialogue with his Iranian counterpart to discuss the stability of the Chabahar Port, ensuring that regional conflict does not stall Indian investments.
- India rejected a temporary waiver from the U.S. regarding the purchase of Russian crude oil, asserting its Strategic Autonomy in choosing energy partners based on national interest.
- The 4th India-ASEAN Digital Ministers’ Meeting concluded with a roadmap for cross-border UPI-based payment integration with three more Southeast Asian nations.
Concepts:
- Strategic Autonomy: A pillar of Indian diplomacy where decisions are made independently of external pressure or alliance obligations.
- UFLPA: A U.S. law that assumes all goods manufactured in the Xinjiang region of China are made with forced labor unless proven otherwise.
4. GDP Growth Hits 7.8% Under New Base Year 2022-23
SUBJECT: ECONOMY
- The Ministry of Statistics and Programme Implementation (MoSPI) announced that India’s GDP for Q3 (Oct-Dec 2025) grew at 7.8%, beating the projected 7.2%.
- A significant shift occurred as the government updated the GDP Base Year from 2011-12 to 2022-23 to better reflect the post-pandemic digital economy and structural changes.
- The Manufacturing sector showed a robust recovery with 13.3% growth, while the Agriculture sector remained steady at 3.9% despite global climate fluctuations.
- The Reserve Bank of India (RBI) intervened in the forex market to stabilize the Rupee, which faced pressure due to rising crude oil import bills.
Concepts:
- Base Year Revision: Periodic updating of the benchmark year to capture changes in the structure of the economy; it affects the calculation of Real GDP.
5. Defence Acquisition Procedure (DAP) 2026 and Indigenization
SUBJECT: DEFENCE
- The Ministry of Defence released the draft DAP 2026, which mandates that the Indigenous Content (IC) in all major platforms must be at least 60%, up from the previous 50%.
- India successfully test-fired the ‘Pralay’ short-range ballistic missile from Wheeler Island, strengthening the Strategic Forces Command’s conventional deterrence.
- The INDUS-X initiative (India-U.S. Defence Acceleration Ecosystem) announced a $50 million fund for startups focusing on undersea communication and AI-driven surveillance.
- The Indian Navy commissioned INS Jatayu in Minicoy, Lakshadweep, significantly enhancing its operational reach in the Arabian Sea.
Concepts:
- DAP 2020/2026: Frameworks that govern how the Indian military buys equipment, with a heavy tilt towards ‘Make in India’.
6. Prime Minister’s Developmental Push in Tamil Nadu
SUBJECT: TAMIL NADU
- Prime Minister Narendra Modi inaugurated projects worth ₹5,650 crore in Tiruchirappalli, including a new integrated terminal building and major petroleum pipeline projects.
- Tamil Nadu ranked among the top three states in the ‘Fiscal Health Index 2026’ report, cited for its efficient tax collection and debt-to-GSDP management.
- The Regional Meteorological Centre (RMC) Chennai issued a heavy rain alert for coastal districts including Nagapattinam and Ramanathapuram due to a low-pressure area in the Bay of Bengal.
