7 January 2026 Current Affairs (With PDF)

We bring you the most relevant and important news updates from around the world and India, specially curated for competitive exams and different entrance exams. Today's Current Affairs cover all significant national and international headlines, legal updates, economic news, and environmental highlights to boost your preparation. With our crisp, to-the-point coverage, you can confidently tackle current affairs questions in your exams.

Partial Implementation of National Sports Governance Act Begins

Why in News

• With effect from 1 January 2026, key institutional mechanisms of the National Sports Governance Act have come into force.
• These include the establishment of National Sports Bodies such as the National Olympic Committee, National Paralympic Committee, National Sports Federations, and Regional Sports Federations.

Key Provisions of the National Sports Governance Act

1. Institutional Architecture:

(a) National Sports Board (NSB)

• Apex regulatory body for sports governance in India.
• Powers & Functions:
  - Grant, renew, suspend, or cancel recognition of National Sports Bodies
  - Maintain a central register of recognized sports bodies-
  - Coordinate with International Sports Bodies and domestic federations
• Designed to curb politicisation, arbitrariness, and lack of accountability in sports administration.

(b) National Sports Bodies (NSBs)

• National Olympic Committee (NOC): Sole governing body for Olympic sports in India
• National Paralympic Committee (NPC): Sole governing body for Paralympic sports
• Other Bodies: National Sports Federations (NSFs) & Regional Sports Federations (RSFs)

2. Dispute Resolution Mechanism:

(a) National Sports Tribunal (NST)

• Established for independent, speedy, effective, and cost-efficient resolution of sports-related disputes.

(b) Excluded Jurisdiction:

• Disputes arising during major international sporting events such as: Olympic Games, Paralympic Games, Commonwealth Games, Asian Games
• Doping-related disputes, which fall exclusively under the National Anti-Doping Act, 2022.

3. Electoral Reforms in Sports:

National Sports Election Panel

• Central roster of experienced former election officials.
• Mandated to oversee free, fair, and transparent elections in sports federations.
• Addresses long-standing issues of conflict of interest and factionalism.

4. Ethical and Safe Sports Framework:

• Mandatory adoption of a Code of Ethics by all recognized bodies.
• Promotion of a Safe Sports Policy, aimed at:
  - Protecting athletes, especially women and minors, from harassment and abuse
  - Ensuring non-discrimination and athlete-centric governance

5. Accountability and Transparency:

• Public Authority Status: Recognized sports bodies deemed “public authorities” under the RTI Act, 2005.
• Financial Oversight: Accounts of the National Sports Board to be audited by the Comptroller and Auditor-General (CAG) of India.

OECD Finalises Agreement on Global Minimum Tax

The OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) has agreed on a “side-by-side arrangement package” for the coordinated implementation of global minimum tax rules across jurisdictions.

What is the Global Minimum Tax?

• Based on the Global Anti-Base Erosion (GloBE) Model Rules.
• Seeks to ensure that large Multinational Enterprises (MNEs) pay at least a minimum effective tax rate (15%) in every jurisdiction where they operate.
• Objective: Curb profit shifting to low-tax or no-tax jurisdictions
  - End the “race to the bottom” in corporate tax rates
  - Protect national tax bases, especially of developing countries

Base Erosion and Profit Shifting (BEPS)

• Refers to tax planning strategies used by MNEs to exploit gaps & mismatches in international tax rules.
• Common methods include: Excessive interest deductions & Royalty payments for intellectual property routed through tax havens
• Result: Artificial shifting of profits away from where economic activity actually occurs.

Global Minimum Tax Package: Key Components

1. Simplification Measures:

• Reduce compliance burdens for both MNEs and tax authorities.

2. Tax Incentive Alignment:

• Introduces a targeted substance-based tax incentive safe harbour.
• Aligns domestic tax incentives with global minimum tax rules to avoid penalising genuine investment.

3. Safe Harbours for Qualifying MNEs:

• Available to MNE groups whose ultimate parent entities are in jurisdictions meeting minimum tax standards.
• Prevents double taxation and excessive compliance.

4. Level Playing Field:

• Includes an evidence-based stock-take mechanism.
• Ensures fair and uniform application of rules across all Inclusive Framework members.

5. Domestic Minimum Tax Protection:

• Strengthens Qualified Domestic Minimum Top-Up Tax (QDMTT) regimes.
• Allows countries—particularly developing economies—to collect top-up tax domestically before profits are taxed elsewhere.

OECD/G20 Inclusive Framework on BEPS

• Launched: 2016
• Led by: OECD and G20
• Membership: 147 countries and jurisdictions (India is a member)
• Objective: Address tax avoidance by MNEs through coordinated global rules.

Two-Pillar Solution

• Pillar One: Reallocates taxing rights to market jurisdictions where consumers/users are located.
• Pillar Two: Introduces a 15% global minimum corporate tax to limit harmful tax competition.

Significance for India & Global Economy

• Enhances tax fairness and revenue certainty.
• Reduces pressure on countries to offer aggressive tax incentives.
• Strengthens India’s ability to tax digital and multinational corporations operating in its market.

Delhi Government–RBI MoU on Borrowing and Cash Management

Why in News

• The Delhi Government has signed a Memorandum of Understanding (MoU) with the Reserve Bank of India (RBI), authorising the central bank to act as its banker, debt manager, and financial agent.
• The arrangement aims to strengthen public debt management, cash flow planning, and financial discipline.

Key Features of the MoU

• RBI will manage:
  - Borrowings and public debt of the Delhi Government
  - Cash and treasury operations
  - Financial agency functions, including payments and settlements
• Such agreements already exist between the RBI and all State Governments except Sikkim, aligning Delhi with the standard federal financial framework.

RBI’s Role as Banker to Governments

1. For State Governments:

• Manages public debt under formal agreements with States.
• Facilitates market borrowings through State Development Loans (SDLs), which are dated securities issued by States.
• Maintains principal accounts of State Governments at the Central Accounts Section, Nagpur.

2. For the Union Government:

(a) Under Section 20 of the RBI Act, 1934, RBI is mandated to:

•  Handle receipts and payments
•  Conduct remittances and exchange operations
•  Manage public debt of the Union

(b) Assists in raising funds through:

• Treasury Bills (short-term) & Government Bonds/Dated Securities (long-term)

Instruments of Government Borrowing

• Central Government: Treasury Bills & Dated Government Securities
• State Governments: Only Dated Securities, known as State Development Loans (SDLs)

Other Core Functions of the RBI

• Monetary Authority: Formulates, implements, and monitors monetary policy.
• Banking Regulator and Supervisor: Sets broad operational norms for banks and financial institutions.
• Foreign Exchange Manager: Administers foreign exchange under the FEMA Act, 1999.
• Currency Issuer: Issues, exchanges, and withdraws currency notes; circulates coins minted by the Government of India.
• Payment Systems Regulator: Oversees and regulates payment and settlement systems.
• Banker to Banks: Maintains accounts of scheduled banks and provides liquidity support.

Significance

• Enhances fiscal credibility and transparency of Delhi’s finances.
• Improves debt sustainability and cash management efficiency.
• Aligns Delhi’s financial administration with best practices followed by other States.

NGT Issues Notice on Environmental Violations around Taj Mahal

Why in News

The National Green Tribunal (NGT) issued a notice to the Centre and the Uttar Pradesh government over non-compliance with environmental norms in the Taj Trapezium Zone (TTZ), a protected eco-sensitive area around the Taj Mahal.

Key Environmental Concerns Highlighted

• Rampant construction activity within the TTZ, violating eco-sensitive norms.
• Illegal felling of trees, leading to loss of green cover.
• Ecological imbalance, including disturbance to the habitat of birds and butterflies.
• Air and water pollution contributing to the deterioration of the Taj Mahal’s marble.
• “Stone Cancer” phenomenon: Discolouration (yellowing and darkening) of white marble due to airborne particulate matter and pollutants.

Taj Trapezium Zone (TTZ)

1. About:

• Area: ~10,400 sq. km
• Coverage: Taj Mahal, Agra Fort, Fatehpur Sikri and surrounding regions
• Nature: Declared an eco-sensitive/protected zone

2. Legal Basis:

• M.C. Mehta vs Union of India (1996): Established the Taj Trapezium Zone.
• Led to the creation of the Taj Trapezium Zone Pollution (Prevention and Control) Authority under the Environment (Protection) Act, 1986.

3. Key Restrictions:

• Regulation of industries, construction activities, and emissions.
• Promotion of cleaner fuels and pollution control measures.
• Supreme Court (M.C. Mehta Case, 2015): Ban on felling of trees within a 5 km aerial distance from the Taj Mahal without prior permission of the Supreme Court.

National Green Tribunal (NGT)

1. About:

• Statutory body established under the National Green Tribunal Act, 2010.
• Objective: Speedy and effective disposal of cases related to environmental protection and conservation.

2. Jurisdiction Covers:

• Environment (Protection) Act, 1986
• Water (Prevention and Control of Pollution) Act, 1974
• Air (Prevention and Control of Pollution) Act, 1981

3. Excluded Acts:

• Wildlife (Protection) Act, 1972
• Indian Forest Act, 1927
• Forest Rights Act, 2006

Important NGT Judgements

1. Vardhaman Kaushik Case (2014–15):

• Ban on 10-year-old diesel vehicles and 15-year-old petrol vehicles in Delhi-NCR to curb air pollution.

2. M.C. Mehta (Ganga Pollution) Case (1988):

• Imposition of environmental compensation on States for failure to treat sewage and regulate industrial effluents.

Strategic Importance of Greenland

Why in News

Denmark’s Prime Minister rejected renewed claims by the U.S. President over Greenland, reaffirming Danish sovereignty over the autonomous Arctic territory.

Why Greenland Matters Strategically

1. Military and Security Significance

• Geostrategic Location: Greenland lies between North America and Europe, making it a linchpin in Arctic and trans-Atlantic security architecture.
• Missile Defence & Early Warning: Hosts critical infrastructure for the U.S. ballistic missile early-warning system, enabling detection of missile launches over the Arctic.
• Space & Intelligence Assets: Ideal location for ground stations tracking polar-orbiting satellites, which are essential for:
  - Military intelligence and surveillance
  - GPS and navigation
  - Weather and climate monitoring
• NATO Relevance: Enhances NATO’s ability to monitor Russian activities in the Arctic and North Atlantic.

2. Critical Minerals and Natural Resources

• Rare Earth Elements (REEs):Greenland possesses large, largely untapped reserves of rare earth minerals, crucial for:}
  - Semiconductors
  - Renewable energy technologies (wind turbines, EVs)
  - Defence systems
• Strategic Diversification: Offers the West an alternative supply chain to China-dominated REE markets, aligning with broader geo-economic decoupling efforts.

3. Emerging Arctic Shipping Routes

• Impact of Climate Change: Melting Arctic ice is opening new maritime corridors, especially the Transpolar Sea Route.
• Global Trade Implications: These routes could:
  - Reduce travel time between the Atlantic and Pacific Oceans
  - Lower fuel and shipping costs
  - Bypass strategic chokepoints like the Panama Canal and Suez Canal
• Economic and Strategic Leverage: Control and influence over Arctic sea lanes will shape future global trade and naval power projection.

4. Great Power Competition in the Arctic

• US–China–Russia Dynamics:
  - China labels itself a “near-Arctic state” and is investing in Arctic research and infrastructure.
  - Russia has heavily militarised the Arctic coastline.
  - The U.S. views Greenland as central to countering both.
• Sovereignty Sensitivities: Denmark’s firm stance highlights tensions between territorial sovereignty and strategic ambitions of major powers.

Kushanas

Why in News

Archaeological excavations near Takshashila (Pakistan)—a UNESCO World Heritage Site—have unearthed rare Kushana-period coins and ornamental stones, including lapis lazuli, shedding new light on the material culture and trade networks of the Kushana Empire.

About the Kushanas (1st Century BCE – 3rd Century CE)

1. Origin and Expansion:

• Ethnic Roots: Emerged from the Yueh-chi, a Central Asian nomadic confederation.
• Empire Building: Established one of the largest trans-regional empires, connecting Central Asia, South Asia, and parts of West Asia.

2. Territorial Extent:

• Core Regions:
  - North-western India, including Gandhara and Kashmir
  - Mathura as a major political and cultural centre
• Eastern Reach:
  - Extended influence into the Ganga–Yamuna Doab, covering parts of present-day eastern Uttar Pradesh and Bihar

3. Administration and Governance

• Decentralised Structure:
  - Empire divided into satrapies
  - Each satrapy administered by a satrap, indicating flexible and region-specific governance
• Integration Strategy: Combined local administrative traditions with imperial authority

4. Economy and Trade

• Monetised Economy: Issued a large number of gold coins, reflecting economic prosperity
• Trade Networks: Actively facilitated long-distance trade through the Silk Route, linking India with Central Asia, Rome, and China
• Archaeological Evidence: Use of lapis lazuli highlights access to luxury materials and inter-regional exchange

5. Cultural and Religious Contributions

• Kanishka I (Most Eminent Ruler):
  - Patron of Buddhism, especially Mahayana traditions
  - Convened the Fourth Buddhist Council
  - Encouraged the spread of Buddhist art and learning across Asia
• Cultural Synthesis: Promoted a fusion of Indian, Greek, Persian, and Central Asian influences, particularly visible in Gandhara art

Historical Significance

• Acted as a cultural and commercial bridge between East and West
• Strengthened early globalisation through trade and ideas
• Left a lasting imprint on coinage, religion, and art history of the Indian subcontinent

Payments Regulatory Board (PRB)

Why in News

The RBI Governor chaired the first meeting of the Payments Regulatory Board, marking the formal operationalisation of India’s new institutional framework for regulating payment systems.

About Payments Regulatory Board (PRB)

1. Establishment

• Year: 2025
• Constituted by: Reserve Bank of India
• Legal Basis: Payment and Settlement Systems Act, 2007

2. Mandate and Functions

(a) Primary Role:

• Regulation and supervision of all payment systems in India.

(b) Scope of Regulation:

• Electronic and non-electronic payment systems
• Domestic as well as cross-border payment mechanisms

(c) Objective:

• Ensure safety, efficiency, stability, and integrity of the payments ecosystem
• Strengthen consumer protection and systemic resilience in digital payments

3. Institutional Change

(a) Replaced Body:

• Board for Regulation and Supervision of Payment and Settlement Systems (BPSS).

(b) Significance of Replacement:

• Reflects the growing scale and complexity of India’s digital payments landscape
• Introduces a more structured and representative regulatory architecture

4. Composition

(a) Chairperson:

• Governor of the Reserve Bank of India

(B) Members:

• Two representatives from the RBI
• Three nominees of the Central Government

Significance

• Regulatory Clarity: Dedicated board ensures focused oversight of rapidly expanding payment systems.
• Governance Balance: Inclusion of Central Government nominees improves coordination between fiscal and monetary authorities.
• Digital Economy Support: Strengthens confidence in platforms such as UPI, cards, wallets, and cross-border payment arrangements.

CAG releases ‘State Finances 2023–24’ Report

Why in News

• The Comptroller and Auditor General (CAG) of India has released the 2nd edition of its annual report ‘State Finances 2023–24’, presenting a comparative overview of the finances of all 28 States for FY 2023–24.
• The first edition (State Finances 2022–23) was released in September 2025.

Key Findings of the Report

1. Public Debt Stress:

• Total State Public Debt: ₹67.87 lakh crore
• Debt–GSDP Ratio: ~23% (as of March 31, 2024)
• Indicates rising indebtedness and shrinking fiscal headroom.

2. Fiscal Deficit Slippage:

• 18 States breached the 3% of GSDP fiscal deficit limit prescribed by the 15th Finance Commission for FY 2023–24.
• Signals weak fiscal discipline in several States.

3. Extreme Fiscal Rigidity:

• Committed expenditure (salaries, pensions, interest payments, subsidies, etc.) accounts for ~60% of revenue expenditure.
• Leaves little fiscal space for new developmental initiatives.

4. Rising Dependence on Union Transfers:

• Share of Union tax devolution in State revenues rose from ~21% (2014–15) to ~30% (2023–24).
• Makes State finances highly vulnerable to macroeconomic shocks and central fiscal constraints.

5. Low Capital Expenditure (Capex):

• Revenue Expenditure: ~83%
• Capital Expenditure: only ~16%
• Indicates prioritisation of short-term consumption over long-term asset creation.
• In States like Punjab and Andhra Pradesh, borrowing is increasingly used for day-to-day expenses rather than productive investment.

6. Transparency and Accounting Issues:

• Presence of “Shadow Budgeting” through misclassification and off-budget practices.
• These practices mask the true fiscal position of States and weaken accountability.

e-Business Visa (e-B-4)

Why in News

India has introduced a new e-Production Investment Business Visa (e-B-4 Visa) for Chinese businessmen to facilitate targeted business activities linked to manufacturing and supply chains.

About e-B-4 Visa

Key Features

• Visa Type: e-Production Investment Business Visa (e-B-4)
• Target Group: Chinese businessmen
• Processing Time: ~45–50 days
• Duration of Stay: Up to 6 months in India
• Nature: Activity-specific, business-linked visa (not general employment)

Permitted Business Activities

Chinese applicants can apply only for specified purposes, including:

• Installation and commissioning of equipment
• Quality checks and essential maintenance
• Supply-chain development, including empanelling of vendors

Significance

• Boost to Manufacturing & Investments: Supports production-linked investments and operational continuity in Indian factories.
• Supply Chain Resilience: Facilitates integration of foreign technical expertise into domestic value chains.
• Targeted Engagement with China: Enables economic cooperation while retaining regulatory oversight and security screening.
• Ease of Doing Business: Digital processing under the e-Visa framework reduces procedural delays.

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