27 January 2026 Current Affairs (With PDF)
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RBI Report Flags India’s Demographic Transition & Its Fiscal Impact on States
RBI Report “State Finances 2025–26” Provides Comprehensive Analysis of Fiscal Health and Budgetary Position of State Governments.
Demographic Transition: Key Takeaways
1. India at a Demographic Inflection Point
- Median age: ~28 years
- Working-age population is at a historic peak, creating a narrow but critical window for growth.
2. Sharp Inter-State Divergences
(a) Youthful States
- Examples: Bihar, Uttar Pradesh
- High share of young population → largest demographic dividend window
(b) Intermediate States
- Examples: Telangana, Uttarakhand
- Dividend window narrowing, transition underway
(c) Ageing States
- Examples: Kerala, Tamil Nadu
- Crossed the demographic turning point; working-age share declining
Fiscal Implications for State Finances
1. Ageing States
(a) Shrinking tax base:
- Lower labour force participation → weaker long-term growth
(b) Rising committed expenditure:
- Pensions + interest payments rising
- Nearly 30% of social sector spending went to pensions in 2024–25
(c) Higher fiscal stress:
- Elevated debt-to-GSDP ratios
- Higher interest payments to revenue receipts
2. Youthful States
- Risk of demographic disaster if education and jobs lag behind population growth.
Policy Prescriptions (State-Specific)
1. Youthful States
- Front-load investment in education, skilling, health
- Convert youth bulge into a productive workforce
2. Intermediate States
Dual strategy:
- Growth-enhancing capital expenditure
- Gradual build-up of healthcare & social security buffers
3. Ageing States
Leverage the “Silver Economy”:
- Extend working lives
- Align retirement age with life expectancy
- Promote flexible and part-time work for seniors
Other Key Fiscal Findings of the Report
- States’ consolidated fiscal deficit: Rose to 3.3% of GDP in 2024–25 (after staying below 3% for 3 years)
- Revenue expenditure: Declined from 15% of GDP (2020–21) to 13.3% (2024–25)
- Outstanding liabilities: Fell to 28% of GDP (March 2024), from 31% in March 2021
Report on Circular Economy of E-Waste & Lithium-ion Batteries
NITI Aayog and TERI Release Report Analysing Fiscal Position of State Governments for 2025–26.
What is Circular Economy?
A production–consumption model focused on sharing, reusing, repairing, refurbishing, and recycling to extend product life cycles and minimize waste.
Key Challenges in India’s E-Waste Circularity
1. Informal & Inefficient Recycling
- ~78% of India’s e-waste handled by informal sector
- Material recovery: Informal (10–20%), Formal facilities (95–97%)
2. Weak Monitoring & Enforcement
- Manipulation of Extended Producer Responsibility (EPR)
- Issue of fake / spurious EPR certificates
3. Limited EPR Coverage
- Recycling dominated by low-value metals [Iron (52%), Copper (18%)]
- Critical minerals (Lithium, Cobalt, Nickel) largely neglected
4. Low Technical Capacity
- Shortage of skilled workforce and advanced recycling technologies
- Safety and scalability challenges in battery recycling
Key Recommendations of the Report
1. Regulatory & Institutional
- Strengthen Waste Management Rules: Expand EPR to include high-value and critical minerals & Real-time monitoring of recyclers
- Integrate Informal Sector: Single-window registration system
- Create a dedicated recycling vertical under National Critical Mineral Mission (NCMM)
2. Economic & Market-Based Measures
- PLI incentives for Advanced Chemistry Cell (ACC) manufacturers linked to recycling
- Integrate battery recycling with Indian Carbon Market
- Allow recyclers to earn credits for GHG emission reductions
3. Capacity & Awareness
- Workforce skilling and re-skilling
- Consumer awareness on responsible disposal
- Promotion of indigenous recycling technologies
Status of E-Waste in India
- Generation: ~6.19 MMT (2024) → projected 14 MMT by 2030
- Global rank: 3rd largest e-waste generator (~7% of global total)
- Recycling rate: India: ~10%
- Global average: ~22%
- EU: ~55% | USA: ~56%
India’s Policy Framework
- E-Waste Management Rules (EWMR) 2022: Mandatory EPR targets via tradable EPR certificates
- Battery Waste Management Rules (BWMR), 2022: Mandatory collection & recycling & Ban on landfilling and incineration
Global Best Practice
- South Korea: Non-compliance penalties up to 130% of recycling cost
WEF announces five new Fourth Industrial Revolution (IR 4.0) Centres globally
Key Highlights
- World Economic Forum (WEF) announced 5 new Centres for the Fourth Industrial Revolution (C4IR) worldwide.
- India gains one new centre in Andhra Pradesh, making it the third C4IR in India, after Mumbai (Maharashtra) and Telangana.
- Reinforces India’s growing role as a global hub for emerging technologies and digital governance.
What is the Fourth Industrial Revolution (IR 4.0)?
1. Coined by:
- Klaus Schwab (Founder, WEF) in 2016
2. Definition:
- The current phase of transformation marked by the convergence of digital, physical, and biological technologies.
3. Key technologies:
- Artificial Intelligence (AI)
- Robotics
- Internet of Things (IoT)
- Quantum Computing
- Big Data, Blockchain, Biotechnology
Distinctive feature: Blurs boundaries between the physical, digital, and biological systems, unlike previous industrial revolutions.
Significance of IR 4.0
1. Economic Growth & Productivity
- Automation, smart manufacturing, and data analytics boost productivity.
- Improves supply-chain resilience and industrial competitiveness.
2. Inclusive Development Potential
- Enables technology leapfrogging for developing economies like India.
- Expands digital access and innovation ecosystems.
3. Environmental Sustainability
- Facilitates low-carbon and resource-efficient growth through:
- Smart grids
- Precision agriculture
- Circular economy models - WEF Lighthouse factories have shown major reductions in CO₂ emissions and water usage using IoT and predictive analytics.
4. Human Capital at the Core
- Shifts emphasis from physical labour to skills, innovation, and lifelong learning.
Challenges and Risks
1. Technology Gap
- Risk of widening global inequality.
- 10 frontrunner economies account for ~91% of global patents in advanced digital production technologies.
2. Workforce Disruption
- Demand for manual, repetitive skills expected to decline by ~30%.
- Demand for tech skills (coding, AI, data science) likely to rise by over 50%.
3. Security & Cyber Resilience
- Increased connectivity exposes industries to cyberattacks, espionage, and infrastructure disruption.
4. Environmental Concerns
- Expansion of sensors, data centres, and connected devices increases energy and resource consumption.
Government launches Digital Climate Atlas; marks 15 years of NICRA
India Launches ACASA-India Digital Platform to Help Farmers Plan Climate Adaptation in Agriculture.
Atlas of Climate Adaptation in Indian Agriculture (ACASA-India)
1. What it is:
- A digital climate platform to support location-specific, data-driven adaptation planning for Indian agriculture.
2. Developed by:
- ICAR-led National Agricultural Research and Extension System (NARES)
In collaboration with: Borlaug Institute for South Asia (BISA) – CIMMYT
3. Purpose:
- Help farmers plan for climate risks (heat, drought, floods, rainfall variability).
- Aid governments in identifying investment needs, prioritising climate-risk mitigation, and scaling adaptation solutions.
4. Significance:
- Translates climate science into actionable, local advisories—a big push toward precision climate adaptation.
National Innovations in Climate Resilient Agriculture (NICRA)
- Launched by: Indian Council of Agricultural Research (ICAR)
- Year: 2011 (completed 15 years)
- Objectives:
- Enhance resilience of Indian agriculture to climate change and variability.
- Validate and demonstrate climate-resilient technologies directly on farmers’ fields.
What is Climate Resilient Agriculture (CRA)?
Adoption of adaptation and mitigation practices in agriculture to improve the system’s capacity to withstand climate shocks, reduce emissions, and recover quickly.
Why CRA is critical for India
- Preventing yield losses: Climate change may reduce crop yields by 4.5–9%, implying ~1.5% GDP loss per year.
- Livelihood security: ~57% of rural households depend on agriculture.
- Rainfed vulnerability:
- 51% of net sown area is rainfed
- Produces ~40% of national food output → highly climate-sensitive. - Food & nutrition security: Rising risks of undernourishment, child malnutrition, and micronutrient deficiencies.
Prime Minister Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi) Scheme
The Prime Minister has launched the PM SVANidhi Credit Card, strengthening formal credit access for street vendors and deepening financial inclusion.
PM SVANidhi Credit Card – Key Features
- Eligibility: Street vendors who have successfully repaid the 2nd tranche loan and are eligible for the 3rd tranche under the PM SVANidhi Scheme.
- Credit Limit: ₹30,000
- Type: RuPay retail (personal) credit card
- Credit Nature: Revolving credit facility, enabling repeated use within the sanctioned limit.
- Significance:
- Moves vendors from one-time microloans to continuous formal credit access
- Encourages digital payments and improves credit history
- Reduces dependence on informal moneylenders
About PM SVANidhi Scheme
- Launch Year: 2020
- Type: Central Sector Scheme
- Objective: To facilitate affordable working capital loans for street vendors to resume livelihoods disrupted due to COVID-19 lockdowns.
- Implementing Ministries: Ministry of Housing & Urban Affairs (MoHUA) and Department of Financial Services (DFS)
Global Investment Trends Monitor (GITM)
The United Nations Conference on Trade and Development (UNCTAD) has released the Global Investment Trends Monitor (GITM), providing an overview of recent global and country-wise Foreign Direct Investment (FDI) trends.
About UNCTAD
- Founded: 1964
- Headquarters: Geneva
- Role: UN’s principal body dealing with trade, investment, finance, and development, especially for developing countries.
Key Findings of GITM
India
- FDI inflows (2025): $47 billion
- Growth: 73% surge compared to the previous year
- Key Drivers:
- Large investments in services (finance, IT, R&D)
- Strong inflows into manufacturing
- Policy push towards global supply chain integration (PLI schemes, ease of doing business, infrastructure push)
Significance: Reinforces India’s position as a preferred destination amid global investment rebalancing and “China+1” strategies.
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