Current Affairs – August 08, 2026

{GS2 – Governance} Withdrawal of FIRs

• Context (IE): Supreme Court said that the states remain free to close or withdraw FIRs registered against students during recent Cockroach Janta Party protests, as long as they follow procedure prescribed by law.

Ways to End a Case Following an FIR

• Closure report: If an investigation does not disclose sufficient material to proceed, the police may file a closure report before the jurisdictional magistrate under Section 193 of BNSS.
• Withdrawal from Prosecution: Under Section 360 of the BNSS, the Public Prosecutor may withdraw a case from prosecution before the judgment with court’s consent.
  • Withdrawal must be based on prosecutor’s independent judgment, not merely government directions.
  • In Sheonandan Paswan v. State of Bihar (1986), Supreme Court held that courts must ensure the withdrawal is bona fide, serves public justice, and does not obstruct the legal process.
• Court quashes the FIR: A person facing prosecution can approach High Court directly which can use its own powers under Section 528 BNSS for the purpose.

{GS2 – MoPNG} GOBARdhan Scheme

• Context (PIB): Union Cabinet approved the GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme, with a ₹23,731 crore outlay spanning FY 2026-27 to FY 2035-36.

• GOBARdhan is the National Circular Bioenergy Scheme under the Ministry of Petroleum and Natural Gas, integrating the entire Compressed Biogas (CBG) value chain on a single national platform.
• Objective: Tenfold growth in domestic CBG production to replace imported liquefied natural gas (LNG).
• Six Pillars: GOBARdhan is built on six pillars spanning demand, pricing, capital, and infrastructure:
  1. Assured Offtake: Guaranteed CBG market within city gas networks.
  2. Stable Pricing: Administered price of ₹2,110 per MMBTU for a minimum 10-year horizon.
  3. Capital Assistance: Up to ₹2 crore per tonne per day of installed capacity for greenfield projects
  4. Pipeline Infrastructure: Funding to connect CBG plants to City Gas Distribution (CGD) networks.
  5. Credit Guarantee: Up to 85% credit guarantee for MSME-based projects.
  6. CBG Ecosystem Challenge Fund: Support for technology, feedstock mapping, and district planning.
• Obligation: City Gas Distribution entities must meet CBG blending obligations of 3% (FY 2026-27), 4% (FY 2027-28), and 5% (FY 2028-29 onwards) across the CNG (Transport) and PNG (Domestic) segments.

Read More> Compressed Biogas Sector | Biogas

{GS3 – Envi} India’s Electric Vehicles (EV) Ecosystem **

• Context (PIB): India’s EV adoption saw a huge surge, growing from 0.08%(FY15-16) to 8.26% (FY25-26).

Rise in India’s EV Adoption

• Growing Sale: Grown ~46x since 2016 from ~50,000 EVs in 2016 to 2.3 million units in 2025.
  • India aims for 30% of all vehicle sales to be electric by 2030, aligning with global EV30@30 initiative.
• Exports: Surged from USD 1.2 million in 2020 to USD 84 million in 2024.
• State-level Penetration (2025): Uttar Pradesh emerged as the largest EV market, representing 18% of national EV sales followed by Maharashtra 12%.
• Global Penetration: Ramped up to over 2/5^th of the global penetration in 2024 driven by motorised two-wheelers and three-wheelers sold in 2025.
• Rising Investment: India’s EV ecosystem raised over USD1.4 billion in FY 2025, ~27% higher than 2024.
• Projected Growth: Valuation of USD 191.04 billion by 2034, Battery market of USD 15.90 billion by 2034, 1.32 million charging stations by 2030.

Key Measures taken to Enhance EV Adoption in India

• National Electric Mobility Mission Plan (NEMMP 2020): It outlines a strategic roadmap to accelerate the adoption and domestic manufacturing of EVs in India.
• Faster Adoption and Manufacturing of (Hybrid &) EVs in India (FAME India): Launched in 2015 under the NEMMP 2020 framework offering incentives to buyers, manufacturers, etc.
• National Mission on Manufacturing (NMM): Aims to double the manufacturing sector’s contribution to GDP from 12.9% (2023) to 25% by 2035.
• PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme (PM E-DRIVE Scheme): Initiative of Ministry of Heavy Industries covering multiple segments including e-2Ws, e-3Ws, e-trucks, e-buses, and e-ambulances.
• PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme: Payment security coverage to each bus deployed for up to 12 years via Public Private Partnership (PPP) model.
• PLI scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage: Establish a cumulative ACC capacity of 50 GWh in India as batteries account for 35-40% of EV’s total cost.
• India Electric Mobility Index (IEMI): NITI Aayog evaluates performance across 16 indicators and three pillars-transport electrification, charging infrastructure readiness, and EV research & innovation.

Read More> India’s Rare Earth Free EVs Push

{GS3 – IE} Scale-Based Regulation (SBR) Framework for NBFCs

• Context (TH): RBI released its updated list of seventeen Upper Layer Non-Banking Financial Companies (NBFC-UL) for 2026–27.

• An NBFC is a company registered under the Companies Act that provides banking-like financial services without holding a banking license. It cannot accept demand deposits, issue cheques on its own, or participate in the payment and settlement system.
• RBI classifies NBFCs into a four-tier structure under its Scale-Based Regulation (SBR) framework:

{GS3 – IE} India’s Handloom Sector **

• Context (PIB | PIB): The 12^th National Handloom Day was celebrated on August 7, 2026, commemorating the 1905 Swadeshi Movement and India’s weaving heritage.

• During the celebrations, the President of India presented the Sant Kabir Awards and the National Handloom Awards to 22 recipients.
  • The awards, instituted under the Handloom Marketing Assistance of the National Handloom Development Program (NHDP), are the highest national recognition for excellence in the handloom sector.

Significance of India’s Handloom Industry

• Global Leadership: India’s handloom sector, the country’s largest cottage industry, produces nearly 95% of the world’s handwoven fabric.
• Livelihood Support: It is India’s 2nd largest rural employment source after agriculture, supporting ~35.22 lakh workers; includes 17.8% ST, 13.7% SC, and 36% OBC workers, aiding marginalized communities.
• Women Empowerment: Female artisans constitute over 72% of handloom workers, driving women’s empowerment and gender equality.
• Cultural Preservation: Traditional weaving preserves regional identities and intangible heritage through GI-tagged products like Banarasi Silk, Pochampally Ikat, and Kanchipuram Silk.
• Green Production: Handloom textiles use natural fibers, need less electricity, and have a lower carbon footprint, supporting sustainable production and ESG compliance.
• Export Value: India exports over ₹1,146 crore of high-value handloom goods; USA is the largest market.

Key Challenges of the Sector

• Market Competition: Handloom weavers face sustained competition from powerlooms and cheaper synthetic products that imitate traditional designs at lower prices.
• Raw Material Volatility: Fragmented supply chains cause irregular availability and sharp price fluctuations in essential inputs such as quality yarn.
• Credit Constraints: Limited access to institutional finance pushes many artisans towards exploitative intermediaries, forcing many into debt cycles.
• Weak Market Linkages: Poor digital literacy, limited branding and inadequate direct-to-consumer channels restrict access to urban and international markets.
• Inter-Generational Exit: Low and irregular earnings, along with poor occupational health standards, discourage younger generations from continuing ancestral crafts.

Major Government Initiatives

• National Handloom Development Programme (NHDP): Supports handloom infrastructure through Mega Handloom Clusters, with eight functional clusters and four under implementation.
• Weaver MUDRA:  Provides concessional credit at 6% interest for three years to reduce dependence on local intermediaries.
• Pehchan Cards: Registers handloom workers through the e-Pehchan portal and facilitates access to welfare schemes and social security benefits.
• India Handloom Brand (IHB) and GI Tags: Ensures product quality and authenticity and protects the identity of distinctive regional handloom products.
• PMJJBY-PMSBY: PMJJBY provides life insurance for ages 18–50, while PMSBY covers accidents and disability for ages 18–70.
• National Fiber Scheme: Introduced in the Union Budget 2026-27, it strengthens domestic production of natural, man-made and new-age fibers for raw-material reliance.
• Craft Handloom Villages: Integrates traditional weaving into cultural tourism and improves artisans’ direct-to-consumer market access.
• Mahatma Gandhi Gram Swaraj: Expands global market linkages, branding and skill development while strengthening the ODOP ecosystem.

Read More > India’s Handloom Industry

{GS3 – IE} Taxation and Other Laws (Amendment) Bill, 2026

• Context (NOA I NOA): Lok Sabha clears Taxation and Other Laws (Amendment) Bill, 2026 offering tax relief measures.

Key Highlights of the Bill

• Purpose: The bill will replace Income-tax (Amendment) Ordinance, 2026, promulgated to mitigate the impact of external economic shocks, and ensuring stability in domestic economy.
  • It also amends the Finance Act, 2026 and Payment and Settlement Systems Act, 2007.
• Exemption to FIIs and BIS:  The Bill exempts foreign institutional investors and Bank for International Settlements from paying income tax on interest earned on investments in government securities. (w.e.f. 1^st April, 2026).
  • Previously, under Income-tax Act, interest income was taxed at 20%, short-term capital gains at 30% and long-term capital gains at 12.5%.
• Tax Exemptions for Foreign Diamond & Electronics Firms: Tax exemption till 2041 for eligible foreign companies dealing in rough diamonds and supplying electronics components through bonded warehouses; exemption for capital goods/tooling extended from 2031 to 2041.
• Relaxation for Offshore Investment Funds: Removes conditions on minimum investors, corpus size, investor concentration, and investment limits.
• Business Trusts (REITs/InvITs): Increases surcharge on concessional tax regime for SPVs from 10% to 25%, while exempting unit holders from tax on dividend income received through business trusts.
• Tax Relief for Data Centres: Expands tax exemption for foreign companies procuring services from Indian data centres by removing notification requirements.

{Prelims – A&C} Har Ghar Tiranga 2026

• Context (PIB): Ministry of Culture launched the nationwide Har Ghar Tiranga 2026 campaign in New Delhi, which will be observed across the country from 9 to 17 August 2026.

• Ministry of Culture also launched SURYAPATH TIRANGA, a flagship initiative under the Har Ghar Tiranga 2026 campaign. It is conceived as a symbolic global Tiranga relay following the path of the rising sun.
  • The National Flag will be ceremonially hoisted in succession from east to west across Indian Missions worldwide, symbolically travelling with daylight across the globe.
• Har Ghar Tiranga 2026 is dedicated to the Spirit of Vande Mataram.

{Prelims – DM} Flash Droughts

• Context (DTE): Recent study highlights that Maharashtra’s semi-arid districts are increasingly vulnerable to flash droughts, threatening agriculture, water security and rural livelihoods.

• Flash droughts are rapid-onset droughts that develop or intensify within weeks rather than months, caused by low rainfall, unusually high temperatures, strong winds, high evapotranspiration, leading to rapid depletion of soil moisture.
• Causes:
  1. Below-normal rainfall combined with high temperatures accelerates evapotranspiration and dries soils rapidly.
  2. Rapid decline in soil moisture is the earliest indicator of flash drought..
  3. Climate variability and warming increase the likelihood of rapid-onset droughts.

{Prelims – IR} BRICS Anti-Corruption Working Group Meeting

• Context (DDN): India hosted the 2^nd meeting of the BRICS Anti-Corruption Working Group and the 2^nd meeting of the BRICS Expert Network on Asset Recovery in Hyderabad, under BRICS Presidency 2026.

• Organised by the Department of Personnel and Training (DoPT), the meetings were held under the theme of India’s BRICS Presidency, “Building for Resilience, Innovation, Cooperation and Sustainability.”

Key Outcomes

• India proposed to establish a BRICS Network of Law-Enforcement Practitioners aimed at enhancing cooperation in tracing fugitive offenders wanted in corruption cases and supporting extradition efforts.
• The participants also welcomed the creation of a BRICS Repository on Informal Cooperation for tracing fugitive offenders sought in corruption cases and supporting extradition.
• They also called for greater cooperation among Financial Intelligence Units (FIUs), enhanced cross-border coordination and faster information exchange to keep pace with evolving digital financial crimes.

{Prelims – S&T} Agni-4 Ballistic Missile

• Context (ANI): India successfully conducted a routine user trial of the Agni-4 ballistic missile at the Integrated Test Range (ITR) in Chandipur, Odisha.

• Agni-4 is an indigenous, nuclear-capable, surface-to-surface Medium-Range Ballistic Missile (MRBM) developed by the DRDO and operated by the Strategic Forces Command (SFC).
• Its two-stage solid-fuel rocket motor can carry a payload of around 1,000 kg (both conventional and nuclear) to a 4,000 km strike range.
• An indigenous Ring Laser Gyro Inertial Navigation System (RINS), paired with a Micro Navigation System (MINGS), achieves a Circular Error Probable of less than 100 m.
• The missile can be launched from a road-mobile launcher, enabling rapid response and improving survivability against pre-emptive enemy strikes.

{Prelims – PIN World} Danube River *

• Context (TG): Danube River recorded its lowest water levels since 1996 amid prolonged drought and heatwaves across Europe.

• Danube is Europe’s second-longest river after the Volga, and the only major river flowing mainly eastward. It is the EU’s longest river.
• The river originates in the Black Forest mountains in Germany and empties into the Black Sea.
• Flows through 10 countries and 4 capital cities: Vienna (Austria), Bratislava (Slovakia), Budapest (Hungary), and Belgrade (Serbia).
• It forms a key trans-European commercial corridor linking the Black Sea to the North Sea through the Rhine-Main-Danube Canal.

• Danube Delta, located in Romania and partially in Ukraine, is a UNESCO World Heritage Site.