Current Affairs — 26 September 2026

1. The RUPP Conundrum in Political Funding

Basic Concept

Political parties in India register under Section 29A of the Representation of the People Act, 1951, but only some go on to earn "recognised" status (national or state party) from the Election Commission by meeting vote-share or seat thresholds; the rest remain Registered Unrecognised Political Parties (RUPPs). RUPPs enjoy several benefits of registration — including tax exemptions on donations under Section 13A of the Income Tax Act — without the stricter public scrutiny and performance requirements that come with recognition, a gap that has long worried election-finance reformers concerned about parties being used as conduits for unaccounted money. This is relevant to GS2 (elections, political finance, transparency).

Core Context

Former Election Commissioner Ashok Lavasa raised fresh concerns about unaccounted political funding after a BBC investigation flagged suspicious donation patterns among RUPPs.

Latest Developments

• RUPP income reportedly surged 223% in FY 2022-23, yet only 739 of 2,764 parties submitted audited accounts for that year, and the ECI delisted 334 of 2,854 RUPPs in August 2025 for prolonged electoral inactivity.

• Twenty-two parties alone were found holding ₹18,742.31 crore in funds, retaining ₹14,848.46 crore even after election-related spending, raising questions about the source and end-use of such large reserves.

• Revenue forgone through tax exemptions on political contributions is estimated at ₹11,813 crore over a decade; individuals claimed ₹2,275.85 crore in such deductions in FY 2022-23 compared to just ₹514.4 crore by companies, and of ₹28,287 crore in reported donations over nine years, only about 42% attracted any tax-deduction claim at all — a mismatch that itself invites scrutiny.

• Suggested reforms include mandatory independent audits through CAG-empanelled auditors, explicit statutory powers for the ECI to deregister non-compliant RUPPs, campaign expenditure caps, and a unified digital portal for political-party financial reporting.

UPSC Prelims Pointers

• Political parties register under Section 29A of the Representation of the People Act, 1951.

• Section 13A of the Income Tax Act exempts registered political parties' income, including donations, from tax subject to conditions.

• A RUPP is a registered party that has not met the ECI's criteria for "recognised" (national/state) party status.

2. UNSC Veto Reform: Regulating Power in a Crisis

Basic Concept

Under Article 27(3) of the UN Charter, substantive (non-procedural) UN Security Council resolutions require the "concurring votes" of all five permanent members (the P5: US, UK, France, Russia, China) — meaning any one of them can block a resolution through a veto, regardless of how the other Council members vote. Critics argue this has repeatedly paralysed the Council during humanitarian crises and mass-atrocity situations where a P5 member (or its ally) is implicated, prompting a series of voluntary-restraint proposals over the past decade rather than a full Charter amendment, which is structurally very difficult to achieve. This is relevant to GS2 (international organisations, UN reform).

Core Context

French President Emmanuel Macron used his address at the 81st UN General Assembly session to renew calls for P5 members to voluntarily restrain their veto use during humanitarian crises.

Latest Developments

• The French-Mexican Initiative (2015) urges P5 members to voluntarily suspend veto use in cases of genocide, crimes against humanity, and large-scale war crimes; it has gathered backing from 128 UN member states, with France and the UK formally committing to the principle themselves.

• The Liechtenstein Initiative, adopted as UNGA Resolution 76/262 (2022), requires the General Assembly to convene within 10 working days whenever any P5 member casts a veto in the Security Council, creating a forum for public accountability even though it cannot override the veto itself.

• The ACT (Accountability, Coherence and Transparency) Group's Code of Conduct separately urges all Security Council members, not just the P5, not to vote against credible resolutions aimed at preventing or halting mass atrocities.

• Formally abolishing the veto would require a Charter amendment under Article 108, which itself needs ratification by all five permanent members — a structural paradox that has kept reform efforts confined to voluntary restraint rather than binding change.

UPSC Prelims Pointers

• Article 27(3) of the UN Charter requires concurring P5 votes for substantive Security Council resolutions.

• The French-Mexican Initiative (2015) and the Liechtenstein Initiative (UNGA Resolution 76/262, 2022) are voluntary veto-restraint mechanisms, not binding restrictions.

• Article 108 requires all five P5 members to ratify any UN Charter amendment, including one abolishing the veto.

3. West Bengal's Anti-Goonda Bill, 2026, Returned by the President

Basic Concept

"Preventive detention" — detaining a person to prevent an anticipated offence rather than to punish a committed one — is constitutionally permitted in India under Article 22(3)-(7), subject to specific safeguards (such as a maximum initial detention period and review by an advisory board), and several states have enacted their own preventive-detention or "Goonda Act"-style laws targeting habitual offenders and organised anti-social activity. Because both the Union and states can legislate on public order and criminal law (List II and List III of the Seventh Schedule), a state law in this area is often checked against existing central legislation for potential overlap or "repugnancy" under Article 254 before it can take effect after presidential assent. This is relevant to GS2 (polity, Centre-state legislative relations, civil liberties).

Core Context

West Bengal's Legislative Assembly passed a new Anti-Goonda Bill, 2026, aimed at habitual offenders and organised anti-social activity, but the President returned the bill, citing potential overlap with existing central legislation.

Latest Developments

• The bill permits detention without trial for up to 12 months for individuals classified as "goondas," and allows "externment" — barring a person from entering specified areas for up to a year.

• It defines "anti-social activities" broadly, covering habitual offences, intimidation, unlawful dispossession of property, and illegal mining, and grants search, seizure, and legal-immunity powers to officials implementing the law.

• Civil-liberties groups have flagged concerns that such broad, discretion-heavy preventive-detention powers could be misused, echoing long-standing debates in India about balancing public-order enforcement with due-process protections under Article 22.

UPSC Prelims Pointers

• Article 22(3)-(7) lays down safeguards applicable to preventive-detention laws in India.

• Public order and criminal law/procedure appear in List II (State List) and List III (Concurrent List) respectively of the Seventh Schedule.

• Article 254 deals with repugnancy between central and state laws on Concurrent List subjects.

4. The SWIFT Payment System

Basic Concept

Cross-border banking transactions require a standardised way for banks worldwide to securely message each other about payment instructions, since money itself does not move through such a messaging system — actual fund transfers happen separately through correspondent banking relationships. SWIFT (Society for Worldwide Interbank Financial Telecommunication), founded in 1973 and headquartered in La Hulpe, Belgium, provides exactly this messaging backbone for the global financial system, making it a frequent flashpoint in discussions of financial sanctions and "de-dollarisation." This is relevant to GS3 (Indian economy, international financial architecture) and GS2 (international relations, sanctions).

Core Context

Renewed international discussion about bypassing Western-dominated financial networks brought fresh attention to how SWIFT actually works and why alternatives to it have struggled to gain traction.

Latest Developments

• SWIFT connects over 11,000 banking and securities institutions across more than 200 countries, using standardised Business Identifier Codes (BICs) and, increasingly, the ISO 20022 messaging framework for more detailed, error-resistant payment instructions.

• It operates as a member-owned cooperative under Belgian law, overseen by the National Bank of Belgium together with the G10 central banks, and — crucially — SWIFT itself only transmits payment messages; it does not settle or move funds, which still occurs through correspondent banking.

• Because SWIFT is governed under Belgian and EU law, it must comply with EU sanctions regimes, which is why exclusion from SWIFT has been used as a sanctions tool against countries such as Iran and Russia.

• Alternative systems include China's CIPS (launched 2015), Russia's SPFS (2014), and the BIS-linked Project mBridge, an experimental platform for cross-border transactions using central bank digital currencies (CBDCs).

UPSC Prelims Pointers

• SWIFT is a Belgium-headquartered financial messaging cooperative founded in 1973; it does not itself settle payments.

• China's CIPS and Russia's SPFS are alternative cross-border payment messaging systems developed outside the SWIFT network.

• Project mBridge is a multi-country BIS-linked experiment in cross-border central bank digital currency (CBDC) transactions.

5. "Analogue Paneer" and the FSSAI's Labelling Crackdown

Basic Concept

Paneer, a fresh, non-aged dairy product made by curdling milk with an acid (such as lemon juice or vinegar) and pressing out the whey, requires roughly 4-5 litres of milk per kilogram, making it dependent on milk supply and price. "Analogue" food products substitute some or all of a traditional food's core ingredients with cheaper alternatives while retaining a similar appearance — in this case, replacing milk fat and protein with vegetable oils, hydrogenated fats, starches, and plant proteins — which can mislead consumers if sold under the original product's name without clear labelling. This connects to GS3 (food processing, consumer protection, agriculture) and GS2 (regulatory governance).

Core Context

The Food Safety and Standards Authority of India (FSSAI) proposed regulatory amendments to prohibit non-dairy "analogue paneer" from being sold or marketed under the "paneer" name without clear disclosure.

Latest Developments

• Analogue paneer can reportedly be manufactured at 50-70% lower cost than conventional dairy paneer, since it substitutes relatively cheap vegetable fats and starches for milk solids.

• Conventional paneer provides higher-quality, complete milk protein (containing all essential amino acids), whereas the protein quality of analogue versions varies depending on the plant ingredients used.

• The FSSAI's proposed crackdown aims both to protect consumers from being misled about what they are buying and to shield dairy farmers' incomes from unfair, mislabelled competition.

UPSC Prelims Pointers

• FSSAI (Food Safety and Standards Authority of India) regulates food safety standards, including labelling, under the Food Safety and Standards Act, 2006.

• Paneer is a non-aged, acid-coagulated dairy product, distinct from rennet-coagulated cheeses.

• "Analogue" foods replace core original ingredients with substitutes while mimicking the original product's appearance.

6. Pandit Deendayal Upadhyaya's 110th Birth Anniversary

Basic Concept

Pandit Deendayal Upadhyaya (25 September 1916 – 11 February 1968) was a political philosopher and organiser central to the ideological development of Indian nationalist political thought in the post-independence decades, remembered chiefly for articulating "Integral Humanism" as a distinct socio-economic philosophy. Integral Humanism proposed an approach balancing four elements of human existence — body, mind, intellect, and soul — and was presented as an indigenous alternative to both Western capitalism (seen as overly individualistic) and Marxist communism (seen as overly materialistic and class-based). This is relevant to GS1 (Indian political thought, modern Indian history).

Core Context

India observed the 110th birth anniversary of Pandit Deendayal Upadhyaya, marking his contributions to Indian political philosophy and organisational politics.

Latest Developments

• Born in Mathura, Uttar Pradesh, Upadhyaya joined the Rashtriya Swayamsevak Sangh (RSS) in 1937 and became a full-time pracharak (activist), working extensively in Uttar Pradesh in the initial decades of his public life.

• He served as General Secretary of the Bharatiya Jana Sangh from 1951 to 1967, and briefly as its President from December 1967 until his death in February 1968.

• He founded Rashtra Dharma Prakashan in Lucknow and edited three publications — Rashtra Dharma, Panchjanya, and Swadesh — through which he propagated his political and philosophical ideas.

• Alongside Integral Humanism, he articulated the concept of "Antyodaya" — development policy oriented toward uplifting the poorest and most marginalised person first — a term that continues to be invoked in contemporary welfare-scheme framing.

UPSC Prelims Pointers

• Pandit Deendayal Upadhyaya (1916-1968) was General Secretary and later President of the Bharatiya Jana Sangh.

• "Integral Humanism" is his philosophy balancing body, mind, intellect, and soul as a critique of both capitalism and communism.

• "Antyodaya" refers to a development approach prioritising the poorest and most marginalised person first.

7. Typhoon Dujuan Strikes Eastern Japan

Basic Concept

Tropical cyclones (called typhoons in the Northwest Pacific) form over warm ocean waters — typically above about 26.5°C — through a cycle of evaporation, condensation, and latent-heat release that powers an organised, rotating storm system; the Coriolis effect causes this rotation to be anticlockwise in the Northern Hemisphere. Climate science notes that warmer air holds more moisture (roughly 7% more per 1°C of warming under the Clausius-Clapeyron relationship), which is one reason typhoons and cyclones today are frequently associated with record-breaking rainfall totals. This is relevant to GS1 (physical geography, climatology) and GS3 (disaster management).

Core Context

Typhoon Dujuan, Japan's 25th named storm of the season, struck the country's eastern regions with extreme winds and record-breaking rainfall, triggering landslides and transport disruption.

Latest Developments

• Dujuan brought sustained winds of about 130 km/h with gusts up to 194 km/h, and dumped 832 mm of rainfall on Izu Oshima island within 48 hours — a record for the region — alongside an all-time-high rainfall reading in Tokyo's Edogawa ward.

• The storm's intensity was amplified by its interaction with Japan's stationary autumn rain front (Akisame zensen), a seasonal weather feature that channels and intensifies precipitation when a typhoon interacts with it.

• The resulting landslides in volcanic and hilly terrain, along with disrupted aviation and rail services, illustrate the compounding hazards — rainfall, slope failure, and infrastructure disruption — that a single storm can generate in geologically vulnerable terrain.

UPSC Prelims Pointers

• Tropical cyclones form over ocean waters warmer than about 26.5°C.

• The Coriolis effect produces anticlockwise cyclone rotation in the Northern Hemisphere and clockwise rotation in the Southern Hemisphere.

• "Typhoon" is the regional name for a tropical cyclone in the Northwest Pacific, equivalent to a "hurricane" in the Atlantic/Northeast Pacific and a "cyclone" in the Indian Ocean/South Pacific.

8. TRAI's Digital Connectivity Rating (DCR) Platform

Basic Concept

As internet connectivity becomes essential infrastructure — for remote work, telemedicine, and access to digital public services — the quality of in-building connectivity (fibre readiness, indoor mobile signal, Wi-Fi coverage) has become as material to property value and liveability as conventional amenities, yet buyers and tenants have had no standardised way to compare it. The Telecom Regulatory Authority of India (TRAI) is the statutory regulator for telecom services in India, and this initiative extends its role from regulating service providers to also creating consumer-facing information tools, similar in spirit to energy-efficiency star ratings for appliances. This is relevant to GS3 (infrastructure, digital economy, regulatory bodies).

Core Context

TRAI launched a Digital Connectivity Rating (DCR) platform — a web portal and mobile app — allowing properties to be assessed and star-rated on their digital connectivity, from property registration through signal testing to public certification.

Latest Developments

• The rating evaluates fibre readiness, 4G/5G coverage, Wi-Fi infrastructure, and in-building connectivity across common areas, lifts, and basements, covering both under-construction and completed residential, commercial, government, and public properties.

• The platform uses Aadhaar-based eSign for authentication of applications and issues QR-coded digital certificates that the public can verify and use to compare properties.

• By making connectivity quality visible and comparable, the initiative is intended to nudge developers toward integrating fibre ducting and in-building telecom infrastructure at the design stage, rather than expensive retrofitting later.

UPSC Prelims Pointers

• TRAI (Telecom Regulatory Authority of India) is the statutory regulator for the telecommunications sector in India.

• The DCR platform uses Aadhaar-based eSign and issues QR-coded connectivity certificates for properties.

• The initiative draws a conceptual parallel with energy-efficiency star-rating labels for household appliances.

9. Operation Drishti — Restoring Sight Along the LoC

Basic Concept

The Armed Forces Medical Services (AFMS) periodically conduct humanitarian medical outreach in remote and border areas as part of India's broader "Operation Sadbhavana" framework, which uses welfare, healthcare, and infrastructure activities by the Army to build trust and goodwill with local border populations, particularly in sensitive regions like Jammu and Kashmir. Such camps often address specific, high-impact but underserved medical needs — cataract and other eye surgeries are a common focus because they can be performed relatively quickly with portable equipment and produce immediate, life-changing results for patients in areas with limited access to specialist care. This is relevant to GS3 (internal security, border-area development) and GS2 (health governance in remote areas).

Core Context

The Armed Forces Medical Services conducted 220 sight-restoring surgeries at an underground surgical facility in Tangdhar, Kupwara district, along the Line of Control, during the 10th Mega Eye Surgical Camp under "Operation Drishti."

Latest Developments

• Underground operation theatres were used to ensure safe, sterile surgical conditions in a militarily sensitive border area, equipped with portable phacoemulsification systems (for cataract removal), vitreoretinal units, intraocular lenses, and glaucoma-management equipment.

• Patients were mobilised through local health screening camps and community radio (Radio Rooh-e-Karnah), with the Army arranging transport, accommodation, and post-operative care for those undergoing surgery.

• Across all ten editions of the Mega Eye Surgical Camp to date, more than 150,000 people have been screened and over 3,500 ophthalmic surgeries performed in underserved border regions, reinforcing the broader goals of Operation Sadbhavana.

UPSC Prelims Pointers

• Operation Sadbhavana is the Indian Army's welfare and civic-outreach programme in border areas, notably in Jammu and Kashmir.

• Phacoemulsification is a modern cataract-surgery technique using ultrasound energy to break up and remove the lens.

• Tangdhar is a border town in Kupwara district, Jammu and Kashmir, close to the Line of Control.

10. Ethiopia and the Renewed Tigray-Region Conflict Risk (Mapping)

Basic Concept

Ethiopia, the world's most populous landlocked country, is organised as a federal democratic republic along ethno-linguistic lines, with a bicameral legislature comprising the House of Peoples' Representatives and the House of Federation. The 2020-2022 Tigray conflict arose after the Tigray People's Liberation Front (TPLF) — which had dominated Ethiopia's ruling coalition from 1991 until Prime Minister Abiy Ahmed formed the Prosperity Party in 2018 — clashed with federal forces, ending with the 2022 Pretoria Peace Agreement, which provided for disarmament and the restoration of federal authority in Tigray. This is relevant to GS1 (world geography/mapping) and GS2 (international relations, conflict and peace processes).

Core Context

Ethiopia's military reported repelling attacks by the TPLF and allied forces in the Amhara and Afar regions, with reports of airport activity in Tigray reviving concerns about a possible return to civil conflict less than three years after the Pretoria Peace Agreement.

Latest Developments

• Fighting has been reported around fronts in Amhara (including the Kobo-Tumuga front and Western Tigray) and Afar (Abala, Erebti, and Yallo), alongside fighting in Tigray itself around Mekelle, Shire, and Axum.

• Ethiopia borders Eritrea, Djibouti, Somalia, Kenya, South Sudan, and Sudan; its capital is Addis Ababa, and its highest peak, Mount Ras Dejen, rises to 4,533 metres.

• Key rivers include the Blue Nile (originating from Lake Tana), the Tekeze, the Omo, and the Awash; the country's Danakil Depression, at 116 metres below sea level, hosts active volcanoes including Erta Ale.

UPSC Prelims Pointers

• Ethiopia is the world's most populous landlocked country; its capital is Addis Ababa.

• The Blue Nile originates from Lake Tana in Ethiopia and joins the White Nile at Khartoum, Sudan.

• The Danakil Depression in Ethiopia is one of the lowest and hottest places on Earth, at 116 metres below sea level.

• The 2022 Pretoria Peace Agreement ended the 2020-2022 Tigray conflict between federal Ethiopian forces and the TPLF.

11. Ayushman Bharat PM-JAY Marks Eight Years

Basic Concept

Ayushman Bharat, launched in 2018, rests on two main pillars: Ayushman Arogya Mandirs (formerly Health and Wellness Centres) for primary healthcare, and the Pradhan Mantri Jan Arogya Yojana (PM-JAY), a health-insurance scheme providing cashless secondary and tertiary hospitalisation cover to economically vulnerable families, funded jointly by the Centre and states. Out-of-pocket health expenditure — costs borne directly by patients rather than through insurance or government schemes — has historically been very high in India, making health-insurance-style schemes central to reducing catastrophic health spending and medical-debt risk for poorer households. This is relevant to GS2 (health policy, social-sector schemes).

Core Context

Ayushman Bharat PM-JAY marked its eighth anniversary, with the government releasing updated coverage and utilisation figures alongside details of the scheme's expanding architecture.

Latest Developments

• The scheme has issued over 48.51 crore Ayushman cards (covering roughly a third of India's population) and has supported more than 13.25 crore hospital admissions, with a cumulative treatment value of about ₹2.03 lakh crore.

• PM-JAY provides cover of ₹5 lakh per family per year for 1,961 medical procedures across 27 specialties, through a network of more than 38,000 empanelled hospitals; coverage has recently been expanded to include senior citizens aged 70 and above, as well as ASHA and Anganwadi workers.

• Out-of-pocket health expenditure as a share of total health spending fell from about 62.6% (2014-15) to 39.4% (2021-22), a trend the scheme is credited with contributing to, alongside broader components such as the Ayushman Bharat Digital Mission (ABDM), which issues interoperable ABHA health IDs, and PM-ABHIM, a ₹64,180 crore health-infrastructure mission (2021-2026).

UPSC Prelims Pointers

• PM-JAY provides ₹5 lakh per family per year in cashless secondary/tertiary hospitalisation cover.

• The Ayushman Bharat Digital Mission (ABDM) issues ABHA (Ayushman Bharat Health Account) IDs for interoperable digital health records.

• Ayushman Arogya Mandirs are the renamed Health and Wellness Centres providing primary healthcare under Ayushman Bharat.

12. WAVES OTT and MyWAVES — Public Broadcasting Goes Digital

Basic Concept

Prasar Bharati is India's public broadcaster, operating Doordarshan (television) and All India Radio, historically organised around fixed broadcast schedules; like public broadcasters worldwide, it has faced pressure to adapt to on-demand, internet-based content consumption dominated by private streaming platforms. Extending India's Digital Public Infrastructure (DPI) philosophy into public-service media, Prasar Bharati has built WAVES OTT as an on-demand streaming platform and MyWAVES as a participatory arm allowing citizens themselves to contribute content, reflecting a broader shift from broadcaster-only content creation to citizen-driven digital storytelling. This is relevant to GS3 (S&T, digital media) and GS1 (Indian culture, since much content centres on heritage and regional storytelling).

Core Context

Prasar Bharati highlighted the growth of its WAVES OTT platform and the citizen-content initiative MyWAVES as part of its push to transform public broadcasting into a participatory digital ecosystem.

Latest Developments

• WAVES OTT, launched on 20 November 2024, now offers more than 20,000 titles across over 15,000 hours of content in 10 or more languages, with more than 1.2-1.4 crore registered users reaching over 130 countries.

• MyWAVES, launched on 23 March 2026, allows citizens to create and upload their own content, with a pilot "Gems of India Challenge" for short cultural videos rolled out across six states.

• The platform integrates access to over 140 television channels and 220 radio services in one place, aiming to shift Prasar Bharati's role from a schedule-bound broadcaster to an on-demand, participatory digital-media ecosystem supporting regional storytelling and heritage documentation.

UPSC Prelims Pointers

• Prasar Bharati is India's public-service broadcaster, operating Doordarshan and All India Radio.

• WAVES OTT was launched on 20 November 2024; MyWAVES, its citizen-content arm, launched on 23 March 2026.

• Digital Public Infrastructure (DPI) refers to shared digital systems built as public goods, a philosophy now extended to public broadcasting.

13. The Triple Chokepoint Crisis: Hormuz, Red Sea, and Black Sea

Basic Concept

Global trade in energy and food depends heavily on a small number of maritime "chokepoints" — narrow shipping routes such as straits and canals — where disruption can rapidly affect prices and supply chains far beyond the immediate region. The Strait of Hormuz (between Iran and Oman) is the world's most important oil chokepoint; the Bab-el-Mandeb strait at the southern end of the Red Sea links the Indian Ocean to the Suez Canal route to Europe; and Black Sea ports are critical to global grain exports, particularly from Russia and Ukraine. This is relevant to GS3 (Indian economy, energy security, food security) and GS2 (international relations, geopolitics of trade routes).

Core Context

Simultaneous disruptions across all three chokepoints — the Strait of Hormuz, the Red Sea/Bab-el-Mandeb corridor, and Black Sea shipping lanes — are compounding global energy, food, and fertiliser-supply risks.

Latest Developments

• The Strait of Hormuz carries about 20% of global oil and gas supplies, making any disruption there highly consequential for global energy prices, including India's own energy import bill.

• Houthi forces' capture of Perim Island in the Bab-el-Mandeb strait has brought Red Sea shipping lanes toward Djibouti and Eritrea within missile range, adding to the shipping-security risks that have already diverted much traffic away from the Suez Canal route since late 2023.

• Russian Black Sea grain exports have fallen by about a third and Ukraine has lost roughly 33% of its grain-export capacity, pushing Russia to develop alternative outlets at Ust-Luga (37 million tonnes capacity) and Murmansk (24 million tonnes) on other coasts.

• The FAO Food Price Index stood at 133.3 in August 2026, up 1.9% month-on-month, while Egypt — which sourced 82% of its wheat from Russia and Ukraine in the first half of 2026 — illustrates how concentrated some countries' food-security exposure to this single supply corridor really is.

UPSC Prelims Pointers

• The Strait of Hormuz, between Iran and Oman, carries about a fifth of global oil and gas supplies.

• The Bab-el-Mandeb strait connects the Red Sea to the Gulf of Aden and the Indian Ocean.

• The FAO Food Price Index is a widely tracked monthly measure of international prices for a basket of food commodities.

14. India's First "Blue Bond" — Sagarmala Finance Corporation

Basic Concept

"Labelled" bonds — green, social, sustainability, or blue bonds — raise capital for specific categories of environmentally or socially beneficial projects, with proceeds ring-fenced for that purpose and typically subject to independent verification; green bonds (for climate/environment projects) have existed in India for some years, but "blue bonds" specifically for ocean and water-related infrastructure are newer. SEBI's 2023 framework for blue bonds permits Indian issuers to raise debt earmarked for projects supporting sustainable use of ocean and water resources, aligning with UN Sustainable Development Goal 14 (Life Below Water) and SDG 6 (Clean Water and Sanitation). This is relevant to GS3 (economy, infrastructure financing, sustainable development).

Core Context

The Sagarmala Finance Corporation announced plans to issue India's first labelled Blue Bond, with a ten-year tenure and issuance planned for 28 September 2026, to fund port connectivity, shipbuilding, inland waterways, and coastal infrastructure.

Latest Developments

• The bond has a base issue size of ₹600 crore, including a ₹500 crore "greenshoe" option (allowing the issuer to raise additional funds if demand is strong), issued under SEBI's 2023 blue-bond framework.

• Proceeds are earmarked specifically for projects supporting port connectivity, shipbuilding, inland waterways development, and coastal infrastructure — extending the Sagarmala port-led-development programme's financing toolkit beyond conventional budgetary and loan-based funding.

• As India's first labelled blue-bond issuance, it extends the country's sustainable-debt market — previously centred on green bonds — into ocean- and water-linked infrastructure specifically, aligned with SDG 14 and SDG 6.

UPSC Prelims Pointers

• Blue bonds raise debt capital earmarked for sustainable ocean- and water-related projects, under a SEBI framework introduced in 2023.

• Sagarmala is India's flagship port-led development programme.

• SDG 14 ("Life Below Water") and SDG 6 ("Clean Water and Sanitation") are the Sustainable Development Goals most directly linked to blue-bond financing.

15. The Yuan's Stalled Reserve-Currency Challenge

Basic Concept

A "reserve currency" is one that foreign governments and institutions hold in significant quantities for international trade, investment, and central-bank reserves; the US dollar has held this dominant position since the mid-20th century, reinforced by deep, liquid US financial markets, the dollar's free convertibility, and strong global institutional trust — factors sometimes called "network effects," since a currency already used everywhere becomes more useful to use, reinforcing its own dominance. China has sought to internationalise the yuan (renminbi) as part of its broader economic rise, but progress has been constrained by capital controls and policy unpredictability that limit foreign investors' confidence in holding yuan-denominated assets. This is relevant to GS3 (international economy) and GS2 (international relations, global economic governance).

Core Context

Despite China's economic scale, the yuan's share of global SWIFT payments has fallen from its 2024 peak, illustrating how difficult it remains to challenge the dollar's entrenched reserve-currency status.

Latest Developments

• The yuan's share of SWIFT-based global payments peaked at about 4.7% in July 2024 but had fallen to roughly 2.75% by May 2026, even as China's GDP (around $21 trillion) has continued to narrow the gap with the United States' (around $32 trillion).

• The US dollar continues to account for more than half of global transactions and foreign-exchange reserves, reflecting deep capital markets, free convertibility, and decades of accumulated institutional trust that a rising GDP alone cannot quickly replicate.

• Persistent Chinese capital controls — limiting how freely money can move in and out of the yuan — along with periodic policy unpredictability, continue to discourage large-scale foreign holding of yuan-denominated assets, keeping trade invoicing, commodity pricing, and sovereign debt markets predominantly dollar-based.

UPSC Prelims Pointers

• A reserve currency is one widely held by foreign governments and institutions for trade, investment, and central-bank reserves.

• The US dollar accounts for more than half of global foreign-exchange reserves and transactions.

• Capital controls are government restrictions on the inflow or outflow of foreign capital/currency.

16. Practice MCQs

Practice MCQs

Q1. With reference to Registered Unrecognised Political Parties (RUPPs) in India, consider the following statements:
1. RUPPs are registered under Section 29A of the Representation of the People Act, 1951.
2. All RUPPs automatically qualify as "recognised" national or state parties.
Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Answer: (a) 1 only

Explanation: RUPPs register under Section 29A but remain "unrecognised" until they meet the ECI's separate vote-share/seat criteria for national or state party recognition, so statement 2 is incorrect.

Q2. Consider the following statements about UN Security Council veto reform:
1. The French-Mexican Initiative is a binding restriction on P5 veto use.
2. The Liechtenstein Initiative requires a UNGA meeting within 10 working days whenever a veto is cast.
Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Answer: (b) 2 only

Explanation: The French-Mexican Initiative is voluntary, not binding; the Liechtenstein Initiative (UNGA Resolution 76/262) does mandate a General Assembly meeting within 10 working days after any veto.

Q3. The SWIFT financial messaging system is headquartered in which country?

• (a) Switzerland

• (b) Belgium

• (c) United States

• (d) Luxembourg

Answer: (b) Belgium

Explanation: SWIFT is headquartered in La Hulpe, Belgium, and is governed under Belgian and EU law, which is why it must comply with EU sanctions regimes.

Q4. Pandit Deendayal Upadhyaya is most closely associated with which of the following philosophies?

• (a) Trusteeship

• (b) Integral Humanism

• (c) Sarvodaya

• (d) Non-alignment

Answer: (b) Integral Humanism

Explanation: Deendayal Upadhyaya articulated Integral Humanism, balancing body, mind, intellect, and soul, as an indigenous alternative to Western capitalism and Marxist communism; Trusteeship is associated with Gandhi and Sarvodaya with Gandhi/Vinoba Bhave.

Q5. Consider the following statements regarding maritime chokepoints:
1. The Strait of Hormuz lies between Iran and Oman.
2. The Bab-el-Mandeb strait connects the Red Sea to the Indian Ocean via the Gulf of Aden.
Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Answer: (c) Both 1 and 2

Explanation: Both statements accurately describe the geography of these two critical global shipping chokepoints.

Q6. With reference to India's first "Blue Bond," consider the following statements:
1. It is being issued by the Sagarmala Finance Corporation.
2. It is earmarked exclusively for renewable-energy power generation projects.
Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Answer: (a) 1 only

Explanation: The Sagarmala Finance Corporation is indeed the issuer, but proceeds are earmarked for port connectivity, shipbuilding, inland waterways, and coastal infrastructure — not renewable-energy generation — so statement 2 is incorrect.