🔆 CURRENT AFFAIRS – 3 JULY 2026

🔆 ECONOMY

📍 Employees’ Provident Fund Scheme, 2026 Notified
✅ Effective from 29 June 2026
✅ Replaces EPF Scheme, 1952
✅ Implemented under Code on Social Security, 2020
✅ Employee and employer contribution remains 12%
✅ Greater emphasis on e-filings, online claims, e-passbooks and UAN linkage

🔆 STATES

📍 Himachal Pradesh Gets 8 New GI Tags
✅ Total GI-tagged products increase from 9 to 17
✅ New GI products include Kinnauri Apple, Kinnauri Topi, Chamba Metal Art, Seabuckthorn and Salooni Safed Makka
✅ Strengthens protection of traditional products and local artisans

🔆 NATIONAL

📍 MECON Granted Miniratna Category-I Status
✅ Granted by Ministry of Steel
✅ Achieved after consistent profits and ₹535.42 crore net worth
✅ Receives greater financial and operational autonomy

📍 Second National Skill Olympiad on Seafood Value Addition Concludes
✅ Organised by MPEDA
✅ Held during Seafood Expo Bharat 2026 at Kochi
✅ Promotes skill development in seafood processing sector

📍 India Expands Green Hydrogen Export Partnerships
✅ ACME Group signs Green Ammonia agreement with IHI Corporation (Japan)
✅ Signs Green Methanol supply agreement with Mitsubishi Gas Chemical
✅ Supports National Green Hydrogen Mission
✅ Green Ammonia capacity: 405 kTPA
✅ Green Methanol supply: 100 kTPA for 10 years

📍 MANAS Strengthens Anti-Drug Reporting
✅ MANAS (Madak Padarth Nishedh Asoochna Kendra) operates under NCB
✅ Enables confidential reporting through 1933, UMANG App and Portal
✅ Connected to 30 NCB Zonal Units and 36 State/UT ANTFs
✅ Supports counselling and rehabilitation services

📍 3rd Global Conclave on Plastic Recycling Begins
✅ Held at Bharat Mandapam, New Delhi
✅ Focus on plastic recycling, circular economy and sustainability
✅ Aligns with UN Global Plastics Treaty
✅ Indian recycled plastics market projected to reach US$3.81 billion by 2032

📍 Akashvani Inaugurates ‘Swar Prerna Veethika’
✅ Launched during 90th anniversary celebrations
✅ India to celebrate 100 years of radio broadcasting in 2027
✅ Parent organisation: Prasar Bharati

🔆 AGREEMENTS & MoUs

📍 India–Japan Strengthen Strategic Partnership
✅ 16th India–Japan Annual Summit held in New Delhi
✅ Adopted Joint Declaration on Economic Security Cooperation
✅ Adopted Joint Statement on AI Cooperation
✅ Adopted Joint Statement on Energy Resilience
✅ Launched India–Japan Cooperative Biogas for Growth (CBG) Initiative

🔆 AWARDS & RECOGNITIONS

📍 Sunil Bharti Mittal Receives USISPF Leadership Award 2026
✅ Honoured by US-India Strategic Partnership Forum
✅ Recognised for strengthening India–North America economic ties

📍 Nominations Invited for PM Rashtriya Bal Puraskar 2026
✅ Open for children aged 5–18 years
✅ Categories include Sports, Science & Technology, Environment, Bravery, Art & Culture and Social Service

🔆 SPORTS

📍 135th Durand Cup Schedule Announced
✅ Tournament from 25 July–23 August 2026
✅ Opening match and final in Kolkata
✅ Ranchi added as a new host city
✅ Oldest football tournament in Asia

🔆 SCIENCE & TECHNOLOGY

📍 India–Southeast Asia Submarine Cable Project Announced
✅ I-2SEA cable to connect India, Malaysia and Singapore
✅ Length: 3,600 km
✅ Completion target: Q4 2029
✅ Consortium includes Microsoft, Tata Communications and Singtel
✅ Landing station in India: Machilipatnam, Andhra Pradesh

🔆 DEFENCE

📍 Indian Army Launches VIJAY Roadmap
✅ Launched by Chief of Army Staff General Dhiraj Seth
✅ Vision to build a technology-driven future-ready Army
✅ Based on Decade of Transformation (2023–2032)
✅ Five pillars: Vigilance, Innovation, Jointness, Atmanirbharta and Yodha First

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🔆 ENVIRONMENT

📍 MoEFCC Launches ATS 4.0
✅ Organised by Zoological Survey of India
✅ Released Animal Discoveries–2025 and Plant Discoveries–2025
✅ 709 new faunal records documented
✅ 353 new plant taxa added to India’s floral database

📍 Community Initiative Protects Himalayan Ray-Finned Fish
✅ Conservation drive launched in East Kameng, Arunachal Pradesh
✅ Species: Schizothorax pelzami
✅ IUCN Status: Endangered
✅ Found in cold Himalayan rivers and streams

🔆 IMPORTANT DAYS

📍 World Sports Journalists Day 2026
✅ Observed on 2 July
✅ Commemorates the establishment of the International Sports Press Association

🔆 OBITUARY

📍 Lt Gen M. M. Lakhera Passes Away
✅ Former Governor of Mizoram and Puducherry
✅ Served with distinction in the Indian Army

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Japan 1 trillion investment

🔆 Indian Ocean Dipole (IOD)

Subject: Geography (GS-I)

📍 Why in Focus?
✅ With forecasts of a Super El Niño, meteorologists are assessing whether a 1997-like positive Indian Ocean Dipole (IOD) could again offset its adverse impact on the Indian monsoon.

📍 What is the Indian Ocean Dipole (IOD)?
✅ An ocean-atmosphere phenomenon characterized by the difference in Sea Surface Temperatures (SSTs) between the western and eastern tropical Indian Ocean.
✅ Also known as the “Indian Niño”.
✅ Plays a crucial role in influencing the Southwest Monsoon.

📍 1997 Example
✅ Despite one of the strongest El Niño events on record, India received 2% above-normal monsoon rainfall.
✅ The surplus rainfall was largely attributed to a strong Positive IOD, which offset El Niño’s drying effect.

📍 Phases of IOD
✅ Positive IOD: Western Indian Ocean warmer; eastern Indian Ocean cooler → Generally strengthens the Indian monsoon.
✅ Negative IOD: Eastern Indian Ocean warmer; western cooler → Weakens the monsoon and increases dry spells.
✅ Neutral IOD: Minimal SST difference between east and west; limited influence on monsoon.

📍 How is IOD Measured?
✅ Measured using the Dipole Mode Index (DMI).
✅ Positive DMI: Western Indian Ocean warmer than eastern.
✅ Negative DMI: Eastern Indian Ocean warmer than western.
✅ Current Status: Neutral IOD.

📍 Impact of IOD

✅ Positive IOD
✅ Enhances Southwest Monsoon over India.
✅ Above-normal rainfall in East Africa.
✅ Drought and bushfires in Indonesia and Australia.
✅ Can partially offset El Niño-induced monsoon deficiency.

✅ Negative IOD
✅ Suppresses monsoon rainfall over India.
✅ Heavy rainfall in Indonesia and Australia.
✅ Drier conditions over East Africa.

✅ Neutral IOD
✅ Near-normal ocean and atmospheric conditions with limited impact on seasonal rainfall.

📍 Current Outlook
✅ IMD forecasts a Neutral IOD during the 2026 monsoon season.
✅ Australian Bureau of Meteorology indicates only a small possibility of a weak Positive IOD during August–September.
✅ If a Positive IOD develops late, it is unlikely to significantly counter a strong El Niño.

📍 UPSC Value Addition
✅ IOD vs El Niño
✅ IOD originates in the Indian Ocean; El Niño originates in the Pacific Ocean.
✅ A Positive IOD can weaken the adverse impact of El Niño on the Indian monsoon, whereas a Negative IOD can amplify drought conditions.

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🔆 Indian Diaspora – Opportunities and Challenges

Subject: International Relations (GS-II)

📍 Why in News?
✅ Rising exclusion and strained U.S.–India relations have highlighted the identity and integration challenges faced by the Indian diaspora, especially in the United States.

📍 What is Diaspora?
✅ A diaspora refers to people who migrate from their homeland but continue to maintain cultural, emotional, economic, or political ties with their country of origin.

📍 Types of Diaspora
✅ Victim Diaspora – Migration due to war or persecution (e.g., Jews, Armenians).
✅ Labour Diaspora – Migration for employment (e.g., Indian professionals in the Gulf, US).
✅ Trade Diaspora – Merchant communities engaged in global trade.
✅ Imperial Diaspora – Migration linked to colonial expansion.
✅ De-territorialized Diaspora – Communities sharing cultural identity without a common homeland.
✅ Cultural Diaspora – Communities preserving cultural identity across generations.

📍 Opportunities Offered by the Indian Diaspora
✅ Record Remittances – India receives around US$135 billion, the highest globally.
✅ Investment & Entrepreneurship – Boosts FDI, startups, and innovation.
✅ Knowledge Transfer – Reverse brain drain through research and technology collaborations.
✅ Global Leadership – Indians head major global corporations and institutions.
✅ Strategic & Policy Advocacy – Strengthens India’s diplomatic and economic interests abroad.
✅ Cultural Diplomacy – Promotes Indian heritage, languages, and traditions globally.
✅ Tourism Promotion – Encourages heritage tourism through Know India Programme and Pravasi Bharatiya Divas.

📍 Key Challenges
✅ Rising racism, hate crimes, and anti-immigrant sentiment.
✅ Visa restrictions, green card backlogs, and immigration uncertainties.
✅ Labour exploitation under systems like Kafala in Gulf countries.
✅ Identity conflicts among second and third-generation migrants.
✅ Consular issues, NRI marital disputes, and social security portability.
✅ Increasing discrimination and exclusion faced by Indian Americans.

📍 Government Initiatives
✅ Indian Community Welfare Fund (ICWF).
✅ Pravasi Bharatiya Bima Yojana (PBBY).
✅ MADAD Portal for grievance redressal.
✅ Know India Programme (KIP).
✅ Overseas Citizen of India (OCI) Card.
✅ VAJRA, PRABHASS & VAIBHAV for research collaboration.
✅ Pravasi Bharatiya Divas (PBD) celebrated every 9 January.

📍 Way Forward
✅ Strengthen migration agreements and labour protection.
✅ Simplify diaspora investment procedures and promote dedicated investment instruments.
✅ Enhance welfare and legal assistance for overseas Indians.
✅ Expand cultural engagement programmes to strengthen ties with younger generations.

🔆 SECURE ANSWER WRITING PRACTICE QUESTION
Q. Discuss the opportunities and challenges associated with the Indian diaspora. Examine the measures taken by the Government of India to strengthen diaspora engagement. (15 Marks)

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🔆 CURRENT AFFAIRS – 4 JULY 2026

🔆 ECONOMY

📍 Employees’ Provident Fund Scheme, 2026 Notified
✅ Replaces EPF Scheme, 1952
✅ Employee and employer contribution remains 12%
✅ Withdrawal categories reduced from 13 to 3
✅ Greater emphasis on Aadhaar-linked UAN, UPI withdrawals and digital services
✅ Members must retain at least 25% as retirement corpus

🔆 STATES

📍 Gujarat Launches ‘Operation Surakshit Cyberspace’
✅ 28-day statewide campaign from 1–28 July 2026
✅ Aims to make cyberspace safer for women and children
✅ Led by Gujarat Police

🔆 NATIONAL

📍 Indian Business Leaders Join AI for Good Global Commission
✅ Global initiative launched by ITU and Salesforce
✅ Indian founding members include Mukesh Ambani, Sunil Bharti Mittal, Lakshmi N. Mittal and Vishal Talwar
✅ Promotes responsible, trustworthy and inclusive AI
✅ First meeting during AI for Good Global Summit 2026 at Geneva

📍 India’s First Export-Import Shipping Container Unveiled
✅ Unveiled by Sarbananda Sonowal
✅ Manufactured in Dadri, Uttar Pradesh
✅ Produced for A.P. Moller–Maersk
✅ Supported under ₹10,000 crore Container Manufacturing Promotion Scheme (CMPS)

📍 NIMHANS Launches India’s First Public Sleep Database
✅ iSLEEPS developed by NIMHANS and IIIT Hyderabad
✅ Asia’s first open-access sleep database for ischemic stroke patients
✅ Contains 100 overnight polysomnography recordings
✅ Published in Scientific Data

🔆 AWARDS & RECOGNITIONS

📍 International Booker Prize Gets New Name
✅ Renamed as Bukhman International Booker Prize from 2027
✅ Prize money doubled from £50,000 to £100,000
✅ Follows 10-year funding agreement with Bukhman Philanthropies

📍 7th National Water Awards Launched
✅ Launched by Ministry of Jal Shakti
✅ Organised by Department of Water Resources, River Development & Ganga Rejuvenation
✅ Winners to receive Trophy and Citation
✅ Recognises excellence in water conservation and management

🔆 PERSON IN NEWS

📍 Hokato Hotozhe Sema Becomes World No. 1
✅ Tops World Para Athletics Rankings in Men’s Shot Put F57
✅ Hails from Nagaland
✅ First Paralympian to receive Ati Vishisht Seva Medal (AVSM)
✅ Serves as Subedar in 9 Assam Rifles

🔆 RANKS & REPORTS

📍 NITI Aayog Releases Tourism & Hospitality Report
✅ Report: “Unlocking Growth in Tourism and Hospitality Sector”
✅ Prepared with Ministry of Tourism
✅ Tourism contributed ₹15.73 lakh crore (5.22% of GDP) in FY 2023–24
✅ Generated 84.6 million jobs
✅ India ranked 39th in TTDI 2024

🔆 SUMMITS & CONFERENCES

📍 ASSOCHAM Hosts National Electric Mobility Conference
✅ Held in New Delhi
✅ Focus on EV ecosystem, localisation, battery supply chains and charging infrastructure
✅ Supports Viksit Bharat vision

🔆 SCIENCE & TECHNOLOGY

📍 Skyroot Announces Vikram-1 Launch
✅ India’s first privately developed orbital launch vehicle
✅ Maiden mission: Mission Aagaman
✅ Launch window: 12 July–4 August 2026
✅ Launch site: Satish Dhawan Space Centre, Sriharikota

📍 World’s Largest Digital Camera Begins 10-Year Survey
✅ Installed at Vera C. Rubin Observatory, Chile
✅ Resolution: 3,200 megapixels
✅ Conducts Legacy Survey of Space and Time (LSST)
✅ Captures one image every 40 seconds

📍 NASA Launches Mission to Raise Swift Observatory Orbit
✅ Link spacecraft launched aboard Pegasus rocket
✅ Will raise Swift Observatory by 240 km
✅ Extends mission life threatened by orbital decay
✅ Swift studies Gamma-Ray Bursts and other high-energy cosmic events

🔆 DEFENCE

📍 DAC Clears ₹52,000 Crore Defence Acquisitions
✅ Approved by Defence Acquisition Council (DAC)
✅ Enhances combat readiness of Army, Navy and Air Force
✅ Includes MR-SAM, VSHORADS, MPATGM, Anti-UAV EW Systems and Kamikaze Drones
✅ Supports indigenous defence capability

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🔆 UPSC Editorial Analysis: Transitioning to Sovereign AI

📍 Introduction
✅ The establishment of Anthropic’s Bengaluru office alongside U.S. export restrictions on frontier AI models highlights that Artificial Intelligence (AI) has evolved from a commercial technology into a strategic geopolitical and national security asset.

📍 What is Sovereign AI?
✅ Sovereign AI refers to developing indigenous AI infrastructure, foundational models, computing capacity, and datasets, ensuring technological self-reliance, data sovereignty, and strategic autonomy.

📍 Why Sovereign AI Matters
✅ AI has become a dual-use technology with applications in defence, cyber security, intelligence, healthcare, and governance.
✅ Dependence on foreign AI models exposes countries to export controls, geopolitical risks, and supply disruptions.
✅ Indigenous AI strengthens national security, innovation, and economic competitiveness.

📍 Challenges for India
✅ Wrapper Trap: Many startups depend on foreign AI APIs instead of building foundational models.
✅ Service-Oriented Ecosystem: Strong IT services sector but limited indigenous AI intellectual property.
✅ Data Sovereignty Risks: Sensitive Indian data processed on foreign cloud platforms.
✅ Algorithmic Bias: AI models trained on Western datasets may not suit India’s linguistic and socio-cultural diversity.
✅ Cyber Security Risks: Foreign restrictions can disrupt critical digital infrastructure.

📍 Socio-Economic Implications
✅ AI can transform agriculture through precision farming.
✅ Enables vernacular education and personalized learning.
✅ Improves healthcare diagnostics and public service delivery.
✅ Supports Digital India and inclusive governance.

📍 Government Initiatives
✅ IndiaAI Mission (₹10,000 crore).
✅ Bhashini for Indian language AI.
✅ Support for indigenous models like Krutrim, Sarvam AI, and Project Indus.
✅ Expansion of domestic AI computing infrastructure and GPU capacity.

📍 Way Forward
✅ Develop indigenous Large Language Models (LLMs).
✅ Build domestic AI supercomputing infrastructure.
✅ Promote AI research through IITs, IIITs, IISc, and industry collaboration.
✅ Strengthen AI governance, ethical standards, and data protection.
✅ Encourage deep-tech innovation through public funding and venture capital.

📍 Conclusion
✅ India’s transition to Sovereign AI is essential for strategic autonomy, digital sovereignty, national security, and global technological leadership. Building indigenous AI capabilities will enable India to move from being the world’s technology back-office to becoming a global AI innovation leader.

📝 UPSC GS-II/III Mains Practice Question (15 Marks | 250 Words)

“Discuss the major risks associated with frontier Artificial Intelligence (AI) systems. Examine the limitations of existing global AI governance frameworks and suggest principles for building an equitable and sovereign AI ecosystem.”

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🔆 Delhi Electric Vehicle (EV) Policy, 2026

Subject: Governance

📍 Why in News?
✅ The Delhi Government has notified the Delhi Electric Vehicle (EV) Policy, 2026, introducing a comprehensive roadmap to accelerate the adoption of Battery Electric Vehicles (BEVs) and reduce vehicular pollution.

📍 About Delhi EV Policy, 2026
✅ Effective from 1 July 2026 to 31 March 2030.
✅ Focuses exclusively on Battery Electric Vehicles (BEVs).
✅ Strong hybrid vehicles are not eligible for tax exemptions or purchase incentives.

📍 Aim
✅ Reduce vehicular pollution and promote zero-emission mobility.
✅ Accelerate EV adoption through incentives, infrastructure development, and regulatory measures.

📍 Key Features
✅ Purchase Incentives
✅ Electric two-wheelers: ₹30,000 (Year 1), ₹20,000 (Year 2), ₹10,000 (Year 3).
✅ Electric three-wheelers: ₹50,000 (Year 1), ₹40,000 (Year 2), ₹30,000 (Year 3).

✅ Tax Benefits
✅ 100% exemption from road tax and registration fees for eligible EVs.
✅ For passenger cars, exemption is applicable up to ₹30 lakh (ex-showroom).

✅ Commercial Vehicle Transition
✅ From 1 January 2027, only electric three-wheelers and N1 category light goods vehicles will receive fresh registrations.

✅ Two-Wheeler Transition
✅ From 1 April 2028, registration of new petrol and CNG two-wheelers will be discontinued.

✅ School Bus Electrification
✅ Schools must convert 10% of buses within 2 years, 20% within 3 years, and 30% by 31 March 2030.

✅ Digital Subsidy Portal
✅ Subsidies will be transferred via DBT within 60 days.

📍 Key Challenges
✅ High upfront cost of EVs for lower-income users.
✅ Need for large-scale expansion of charging infrastructure.
✅ Increased electricity demand and grid management.
✅ Opposition from hybrid vehicle manufacturers.
✅ Preventing misuse of subsidies through resale outside Delhi.

📍 Way Forward
✅ Expand the planned 32,000 public charging points.
✅ Ensure timely Aadhaar-enabled DBT of subsidies.
✅ Introduce affordable home charging tariffs through DISCOMs.
✅ Promote commercial EV adoption with regulatory incentives.
✅ Ensure a smooth transition by allowing existing ICE vehicles to operate until the end of their valid registration period.

🔆 SECURE ANSWER WRITING PRACTICE QUESTION
Q. How can electric vehicle adoption contribute to India’s climate commitments? Analyse the constraints that may limit its effectiveness in reducing emissions. (15 Marks)

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