Current Affairs – June 28, 2026

{GS3 – IE} India’s Economic Paradox: High Growth, Low Well-being **

Context (IE): Despite India recording relatively high GDP growth over the past few years, the benefits of economic growth are not trickling down to a large section of the population.

Why GDP Growth Alone Is Not Enough? Gross Domestic Product (GDP) measures the value of goods and services produced in an economy. However, it does not directly measure people’s quality of life.

Key Challenges Hindering Inclusive Growth

Food Deprivation: As per the Household Consumption Expenditure Survey (HCES) 2023-24, 50% of rural and 20% of urban populations cannot afford two thali meals per day.
Jobless or job-poor growth, where output expands faster than employment generation. Youth unemployment stands at nearly 10%, three times the rate for the overall labour force.
Decline in real wages over the past 5 years, primarily driven by rising food prices. Lower purchasing power weakens household demand and affects overall economic activity.
Food Inflation: Since 2011-12, the real price of food has risen by over 30% relative to all other goods. Since food constitutes a major share of household expenditure, higher food prices reduce disposable income available for education, healthcare and other essential consumption.

Limitations of Current Reform Strategy

Supply-side Bias: Policy discussions have largely focused on Ease of Doing Business (EoDB) and attracting FDI. While these measures improve the supply side of the economy, they do not directly address weak household demand, unemployment, or declining purchasing power.
Limited Impact of FDI: Although FDI is an important source of capital and foreign exchange, it is not the primary solution to India’s challenges of unemployment, low consumption, and poor living standards.
Demand-side Challenge: India’s non-agricultural sector is facing weak consumer demand rather than production constraints. Therefore, policies aimed solely at improving the business environment may have limited impact unless household incomes and consumption improve.

{GS3 – IE } A Decade of Tourism-Led Growth

Context (PIB): Government highlighted India’s decade-long tourism transformation through infrastructure, sustainability and inclusive, employment-oriented growth.

Tourism contributes US$231.6 billion to India’s economy, making it the 8^th largest tourism economy globally. India is projected to become the 4^th largest tourism economy over the next decade.

Key Government Schemes for Tourism Development

Swadesh Darshan Scheme: Develops integrated tourism infrastructure across thematic tourist circuits; Swadesh Darshan 2.0 focuses on sustainable, experience-based destinations.
PRASHAD Scheme: Enhances infrastructure, amenities, and visitor facilities at major pilgrimage and heritage destinations.
Special Assistance to States for Capital Investment (SASCI): Supports States in developing iconic tourist centres into globally competitive tourism destinations.
Travel for LiFE (Lifestyle for Environment): Encourages environmentally responsible tourism through sustainable travel practices and community participation.
UDAN Scheme: Expands regional air connectivity, improving access to remote & emerging destinations.
e-Tourist Visa & NIDHI/NIDHI Plus: Simplify visa processing, digital registration, and service delivery to enhance ease of travel and tourism governance.

Challenges for Tourism Sector

Overtourism: Congestion and ecological stress at destinations like Shimla, Manali, Goa and Kedarnath.
Infrastructure Gaps: Poor last-mile connectivity and inadequate amenities in the North-East, Himalayan and tribal regions.
Climate Vulnerability: Heatwaves, floods and glacier retreat threaten destinations like Joshimath, Ladakh and Kerala.
Skill & Service Quality: Shortage of trained guides, multilingual staff and hospitality professionals, especially in rural tourism.

{GS3 – IE } MSMEs as Driver of India’s Inclusive Growth

Context (PIB): India’s MSME sector, with over 8.7 crore enterprises, is driving inclusive growth and advancing the vision for Viksit Bharat 2047.

The UN designated 27 June as Micro, Small and Medium-sized Enterprises Day to raise awareness of MSMEs’ role in achieving the SDGs.

Landscape of India’s MSME Sector

Economic Contribution: It contributes ~31.1% of India’s GDP and 35.4% of total manufacturing output.
Employment Generation: MSMEs are the 2nd-largest employment source after agriculture, sustaining livelihoods for over 38.9 crore people.
Export Dominance: These enterprises account for 48.58% of India’s total exports.
Rural Sales: Khadi and Village Industries recorded sales exceeding ₹1.27 lakh crore in 2025–26.

Significance of MSMEs for India’s Economy

Labour Absorption: MSMEs harness India’s demographic dividend by creating accessible non-farm jobs for first-generation, youth-led, and rural entrepreneurs.
Women Empowerment: Low-capital requirements and proximity to home enable women to own businesses, with women leading over 60% of unincorporated manufacturing firms.
Regional Balance: MSMEs decentralise production, reducing distress migration to overpopulated cities.
Social Inclusion: MSME policies support SC/ST entrepreneurs through the National SC-ST Hub (NSSH), with over 34% of subsidised trade-fair stalls allocated to them.

Key Government Initiatives for MSMEs

PMEGP: Prime Minister’s Employment Generation Programme is a credit-linked scheme that supports self-employment through margin money subsidies for new micro-enterprises.
Digital Integration: Samadhaan portal resolves delayed-payment disputes; major MSME portals now offer services in 22 Scheduled Indian languages via BHASHINI and the National Informatics Centre.

PM Vishwakarma Scheme: Provides skill upgradation, toolkit incentives, digital transaction training, and collateral-free credit to traditional artisans.
ASPIRE: Supports Livelihood Business Incubators and technology business incubation to promote innovation in agro-rural industries.
MSME Champions Scheme: Supports quality through Zero Defect Zero Effect (ZED) certification, efficiency through Lean Manufacturing (LEAN), and intellectual property protection.
Self-Reliant India (SRI) Fund: Provides equity support to viable MSMEs through daughter funds, enabling their expansion and market listing.
RAMP: The World Bank-supported Raising and Accelerating MSME Performance programme strengthens Centre-State MSME institutions and market linkages.

United Nations Development Programme (UNDP) leads UN efforts to eradicate poverty, reduce inequalities, and support SDGs in over 170 countries.
Atal Innovation Mission (AIM) is NITI Aayog’s flagship initiative, launched in 2016 to promote innovation through school-level tinkering labs and startup incubation centres.
T-Hub, based in Hyderabad, is the world’s largest startup hub supporting founders from ideation to scale.

{GS3 – S&T} India’s Emerging Technology Ecosystem **

Context (PIB): India has transformed from a large digital market into an emerging global technology power over the last decade. With systemic investments in Digital Public Infrastructure (DPI), mission-mode initiatives, and human capital, India is laying the technological bedrock for Viksit Bharat 2047.

Digital India Programme as the Backbone of Emerging Capabilities

Digital India Programme, launched in 2015, laid the foundation for India’s emerging technology ecosystem by strengthening digital infrastructure across the country.
Physical Infrastructure: Optical fibre coverage expanded from 19.35 lakh route km in 2019 to 42.36 lakh route km in 2025. This enabled one of the world’s fastest 5G rollouts, covering 99.9% of Indian districts.
Democratization of Data: Internet connections surged from 25.15 crore (2014) to 102.86 crore (2026). Concurrently, data costs plummeted to ₹8–10 per GB.
Strategic Impact: Cheap, ubiquitous data created the massive data pools (population-scale datasets) necessary to train Artificial Intelligence, test blockchain architectures, and scale cloud computing.

Developing Capabilities for Future Readiness

Artificial Intelligence (AI)	IndiaAI Mission (2024): It focuses on building indigenous AI computing infrastructure and expanding access to high-end GPU facilities. Progress: The mission has helped strengthen India’s AI ecosystem. India, as on March 2026, has around 1.8 lakh startups, with nearly 89% of new startups using AI solutions.
Semiconductor Ecosystem	Semicon India Programme (2021): It promoted semiconductor manufacturing, display fabrication, chip design, packaging, testing, talent development, and research collaborations. India Semiconductor Mission (ISM) 2.0: Announced in Union Budget 2026–27 with an initial outlay of ₹1,000 crore for FY 2026–27. Design Linked Incentive (DLI) Scheme (2021): It supports startups, MSMEs, and academic institutions through financial incentives and advanced design infrastructure.
High-Performance Computing	National Supercomputing Mission (NSM): Launched in 2015 with an outlay of ₹4,500 crore, India has deployed 38 supercomputers with a combined computing power of 47 petaflops across leading institutions. A major achievement is the development of the indigenous PARAM Rudra series, built with Indian-designed hardware and software.
Quantum Future	National Quantum Mission (2023): It seeks to develop indigenous quantum technologies, strengthen research infrastructure, build skilled talent, support startups, foster industry-academia collaboration, and position India among the world’s leading quantum technology nations. Progress: Indigenously built and demonstrated a 1,000-km secure quantum communication network (6 years ahead of schedule) & aid the foundation stone for India’s first Quantum Valley in Amaravati (February 2026).
Cloud Computing	MeghRaj Initiative (2014): India’s national cloud platform enables secure digital governance. MeghRaj 2.0 strengthened this ecosystem through hybrid cloud architecture, and stronger cybersecurity. Progress: Adoption of MeghRaj cloud platform increased from 342 government departments in 2015–16 to 2,323 departments.
Blockchain	National Blockchain Framework (2021): It aims to create a secure, scalable, and interoperable blockchain ecosystem for citizen-centric governance and digital trust. Indigenous Platforms: India’s blockchain ecosystem has expanded through indigenous platforms such as the Vishvasya Blockchain Stack, NBFLite sandbox, Praamaanik app verification system, and the National Blockchain Portal.
Bioeconomy & Industrial Biotechnology	Initiatives: National Biopharma Mission, BioE3 Policy, BioNEST incubators, and Promoting Academic Research Conversion to Enterprise (PACE) etc. Achievements: India’s biotech sector reached USD 190 billion by June 2026 (target of USD 150 billion achieved in 2023 — 2 years ahead of schedule).

Building Capacity, Research & Skill

Research

Anusandhan National Research Foundation (ANRF): Operationalized in 2024, it bridges academia-industry gaps.
Research Development and Innovation (RDI) Scheme (2025): It holds a ₹1 lakh crore corpus to provide long-term, low-cost financing for private sector deep-tech R&D.
Other: Mission for Advancement in High-impact Areas (MAHA), Partnerships for Accelerated Innovation and Research (PAIR), and ANRF Translational Research and Innovation (ATRI) etc.

Targeted Skilling

FutureSkills PRIME Programme (2018): It focuses on skilling, reskilling, and upskilling in areas such as AI, Big Data Analytics, Internet of Things (IoT), Cyber Security, & Blockchain, etc. More than 27.53 lakh candidates have registered on the platform (March, 2026).
National Institute of Electronics and Information Technology (NIELIT): It provides training in AI, Cyber Security, Blockchain, IoT, Cloud Computing, and Electronics System Design and Manufacturing. It became a Deemed-to-be University in July 2024.
Skilling for AI Readiness (SOAR) programme (2025): It targets school students from class 6 to class 12.
Skill India Digital Hub (SIDH): It integrates skilling, employment, apprenticeships, and entrepreneurship opportunities through a single trusted digital platform.

India’s Growing Global Technology Credibility

Global Innovation Index: India rose to 38^th in the Global Innovation Index 2025 from 81^st in 2015.
Network Readiness Index (NRI): India’s rank improved from 91 (2016) to 45 (2025).
Bharat 6G Alliance (B6GA): Formed in 2023, it is an industry-led, government-facilitated initiative bringing together telecom service providers, academia, research institutions, and standards organizations
Global Capability Centres (GCC): India now hosts over 2,100 GCCs, employing around 2.36 million professionals. Nearly half of the GCCs established since 2021 have been AI-focused.
New, Emerging and Strategic Technologies (NEST) Division: Set up in 2020 under the Ministry of External Affairs, it handles the foreign policy and international legal aspects of technologies like 5G, 6G, AI, Biotech, Semiconductors, and Clean Technologies.
SEMICON India 2025: It showcased India’s emergence as a trusted global semiconductor destination. The event brought together over 350 exhibiting companies from 48 countries and regions.
India AI Impact Summit 2026: It significantly enhanced India’s credibility as a global leader in responsible and inclusive AI. A landmark achievement was the adoption of the India AI Impact Summit Declaration by 92 countries and organisations.

{Prelims – MIH } Battle of Plassey *

Context (IE): This year marked the 269^th anniversary of the Battle of Plassey (1757), which laid the foundations for British colonial expansion in India.

The battle was fought on the banks of the Bhagirathi River in Bengal, where the British East India Company (EIC), led by Robert Clive, defeated Siraj-ud-Daulah, the last independent Nawab of Bengal.
EIC’s misuse of tax exemptions (dastaks) and fortification of Calcutta led Siraj-ud-Daulah to capture Fort William, imprisoning British troops in a cramped cell, causing multiple deaths (“Black Hole of Calcutta’ incident). This provided Britain with a pretext for military action.
Robert Clive secured support from merchant-bankers like Jagat Seth and Omichund; bribed Siraj’s commander-in-chief, Mir Jafar, to win the battle, and made him the Nawab of Bengal.
Significance: The battle ended French influence in the region, gave EIC control over Bengal’s revenues and resources, transforming it from a trading body into a territorial power.

{Prelims – Envi} Gee’s Golden Langur (Trachypithecus geei)

Context (IE): Seven endangered golden langurs, rescued from wildlife traffickers, were rehabilitated and released in Assam’s Sikhna Jwhwlao National Park.

Gee’s Golden Langur is a rare Old World monkey with a golden coat, a black face, and a very long tail up to 100 cm. It lives in a small polygynous group with one dominant male and several females.
Habitat: It is arboreal and endemic to moist deciduous and semi-evergreen forests in Bhutan & Assam.
- Chakrashila Wildlife Sanctuary is India’s first sanctuary dedicated specifically to golden langurs.
Diet: Being a specialised folivore, it feeds on leaves, young shoots, seeds, buds, and seasonal fruits.
Ecological Role: Primary consumer and seed disperser, supporting local forest regeneration.
IUCN: Endangered; CITES: Appendix I; WPA: Schedule I

{Prelims – Misc} One-Liners

In News – International Police Expo 2026 (NDTV): Showcased ‘Make in India’ security innovations, including India’s first indigenous sniper rifle, ‘Tyto’, AI-powered anti-drone patrol vehicles ‘Indrajaal Ranger’, advanced radar detecting through walls, and AI-driven predictive policing and forensic platforms. The Expo serves as a specialised interactive platform where state police, paramilitary forces, and security agencies collaborate with tech providers to modernise internal security.
Agri – Textiles Summit 2026 (PIB): Ministry of Textiles concluded the two-day summit to chart a roadmap to achieve USD 100 billion in textile exports by 2030. It emphasised maximising FTAs, integrating Districts as Export Hubs (DEH), and using traceability tools like Digital Product Passports to scale up the sector.
- India’s textile sector contributes over 2% to national GDP, nearly 10% to industrial output, and 8.63% to exports.
- Infra – Hub-And-Spoke Aviation Model (ET): India has launched its ambitious hub-and-spoke aviation model at Varanasi, to simplify international travel for citizens in smaller cities. Under the system, smaller airports, known as “spokes”, are connected to larger hub airports such as Delhi. Passengers travelling abroad can begin their journey from a smaller city and connect seamlessly to international flights through the hub airport.
- Geo – Chhattisgarh’s 5% Model (IE): Community-led groundwater recharge initiative launched in Korea district, Chhattisgarh, under which farmers voluntarily allocate 5% of their farmland for soak pits to enhance rainwater percolation, improve soil moisture, and promote decentralised water conservation through convergence with MGNREGS.