UPSC Daily Current Affairs: 2026-02-01

Table of Contents
1. Economic Survey 2025-26 and India's Space Sector
2. Shifting the Fiscal Anchor - India's Move from Fiscal Deficit to Debt-to-GDP Ratio
3. Why India's EV Battery Scheme Is Falling Short
4. India's Low Public Health Spending
5. 34th Foundation Day of National Commission for Women
6. Menstrual Health Fundamental Right under Article 21: SC
7. Space Spinoffs
8. Bomb Cyclone
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GS3/Economy

Economic Survey 2025-26 and India's Space Sector

Why in News?

The Economic Survey 2025-26 has evaluated the current state of India's space sector against a backdrop of a stagnant budget and rising expectations from private industry players.

Key Takeaways

• Transition from a state-dominated space program to a commercially oriented ecosystem.
• 2020 policy reforms have opened the sector for private participation.
• Budgetary constraints have raised concerns over technological competitiveness.

Additional Details

• Evolution and Policy Shift: India's space program has evolved significantly over the last decade, achieving notable milestones like successful lunar missions, which have established India as a reliable player in space exploration. The 2020 reforms led to the establishment of IN-SPACe, a body aimed at facilitating private participation.
• Budgetary Trends: The Department of Space has faced near-stagnant budget growth over four years, with capital expenditure declining while revenue expenditure has risen, indicating a shift towards maintenance over innovation.
• Export Performance: India has successfully launched approximately 400 foreign satellites from 2015 to 2024, generating significant revenue, although underlying structural issues remain unaddressed.
• Role of NSIL: NewSpace India Limited (NSIL) has become essential, reflecting the government's strategy to enhance commercial income. However, concerns persist regarding the sustainability of relying on commercial revenues versus public investment in core research and development.
• Industry Expectations: Industry representatives are calling for increased budget allocations and a procurement-driven model to stimulate private investment and ensure predictable demand.
• Challenges: The Economic Survey highlights a growing disparity between industry demands for expansion and the Department of Space's capability to meet these needs, necessitating improvements in quality assurance and fund utilization.

In conclusion, the Economic Survey 2025-26 emphasizes the need for a balanced approach to transition towards a more commercially driven space sector, while addressing key challenges to ensure India remains competitive in the global space landscape.

GS3/Economy

Shifting the Fiscal Anchor - India's Move from Fiscal Deficit to Debt-to-GDP Ratio

Why in News?

As the Finance Minister prepares to present her ninth consecutive Union Budget, India's fiscal framework is set for a significant transformation. Starting from FY 2026-27, the Centre will shift its fiscal consolidation target from focusing on the fiscal deficit to a debt-to-GDP ratio, aligning India's fiscal approach with global best practices. This upcoming Budget will be the first to outline the specifics of this new fiscal anchor for an entire financial year.

Key Takeaways

• The fiscal anchor is transitioning from an annual fiscal deficit target to a medium-term debt-to-GDP ratio.
• This shift aims to provide flexibility in responding to economic shocks and facilitating gradual fiscal consolidation.

Additional Details

• Key Projections: The Centre anticipates that the debt-to-GDP ratio will decrease to 50 ± 1% by March 2031, down from an estimated 56.1% in March 2026. Most economists expect it to be around 55% of GDP for FY27.
• Fiscal Deficit Implications: To achieve a one percentage point reduction in the debt ratio annually would imply a fiscal deficit of 4.2% of GDP in FY27, amidst high gross borrowings due to significant repayment obligations and future liabilities such as the 8th Pay Commission.
• Role of Growth and Borrowings: The debt-to-GDP ratio is influenced by nominal GDP growth, government borrowing and repayment strategies, and interest costs, which are expected to decrease with softer monetary conditions.
• Economic Survey 2025-26: The Survey notes a reduction of general government debt by approximately 7.1 percentage points since 2020, while maintaining high public capital expenditure.
• Importance of States: Both Centre and state debts contribute to the general government debt, which is crucial for rating agencies evaluating the country's fiscal health. States will face greater scrutiny regarding public finance management.
• RBI's Concerns: The RBI has indicated that high state debt levels may hinder investment and growth, urging states with high leverage to adopt clear debt consolidation paths.
• Centre's Fiscal Position: The Centre aims to maintain its fiscal deficit below 4.5% of GDP by FY26 despite tax cuts, while facing challenges from recent reductions in income taxes and GST.
• Challenges Ahead: Key challenges include managing borrowings, ensuring states' fiscal discipline, balancing development expenditure with debt sustainability, and addressing uncertainties from future liabilities.

The transition from a fiscal deficit-centric framework to a debt-to-GDP-based fiscal anchor signifies a maturation in India's fiscal policy. This new framework aims to prioritize long-term debt sustainability while allowing for growth-oriented spending. The success of this strategy will depend on strong nominal growth, prudent borrowing practices, and active collaboration with states, highlighting the importance of cooperative fiscal federalism.

GS3/Economy

Why India's EV Battery Scheme Is Falling Short

Why in News?

India's ₹18,100 crore Advanced Chemistry Cell (ACC) Production Linked Incentive (PLI) scheme, which aims to enhance domestic battery manufacturing for electric vehicles, has seen limited progress. With a target of achieving 50 GWh capacity by 2025, only 1.4 GWh has been installed, while 8.6 GWh has been delayed and 20 GWh has shown no progress. Additionally, the scheme has resulted in just 1,118 jobs-far fewer than projected-and attracted only about a quarter of the intended investment, raising concerns about its overall effectiveness.

Key Takeaways

• The ACC PLI scheme aims to reduce India's dependency on Chinese battery imports.
• Progress has been minimal, with only 2.8% of the targeted capacity commissioned by October 2025.
• No funds have been disbursed as beneficiaries have not met the required milestones.

Additional Details

• Advanced Chemistry Cells (ACC): These next-generation energy storage technologies store electricity chemically and release it as needed. Lithium-ion batteries are the most common ACCs, but the Indian scheme allows for alternatives like nickel manganese cobalt and sodium-ion batteries.
• Incentives and Requirements: The ACC PLI scheme was designed to incentivize private companies to set up production for key components, with subsidies of up to ₹2,000 per kWh for batteries sold, provided firms commit to a minimum production capacity.
• Challenges Faced: Unrealistic timelines for setting up gigafactories, challenging domestic value addition norms, and heavy dependence on China for raw materials and expertise have hindered progress.
• The selection criteria favored new entrants, which led to established players missing out, causing gaps in experience within the program.

The report suggests immediate measures, such as fast-tracking visas for technical experts and extending project timelines by at least a year, to mitigate penalties for delayed facilities. Long-term recommendations include enhancing domestic capabilities for critical mineral refining and increasing investment in research and development to strengthen India's battery manufacturing ecosystem.

GS2/Governance

India's Low Public Health Spending

Why in News?

India's public health spending is significantly lacking, as the Union government has not met the targets set by the National Health Policy (NHP) 2017.

Current Status of Public Health Spending in India

• Missed National Targets: The NHP 2017 aimed to increase public health spending to 2.5% of GDP by 2025. However, the Union government's share, expected to be 40% of total public spending (1% of GDP), is only 0.29% of GDP for 2025-26.
• Post-Covid-19 Decline: After the Covid-19 pandemic, the Union government's health spending dropped from 0.37% of GDP in 2020-21 to 0.29% in 2025-26.
• State vs. Centre: While states have increased their health spending from 0.67% of GDP in 2017-18 to 1.1% of GDP in 2025-26, the Centre has reduced its share, leading to greater financial centralization.
• Decline in Health Transfers: The Union's share of health transfers to states for Centrally Sponsored Schemes has decreased from 75.9% in 2014-15 to 43% in 2024-25, weakening state capacity to provide healthcare.
• Cess Misallocation: Funds from the Health and Education Cess (HEC), meant to expand healthcare for the poor, are not supplementing but replacing the core health budget. In 2023-24, only 25% of HEC collection was allocated to health.
• Global Disparity: India's per capita public health spending is among the lowest globally, significantly less than countries like Bhutan (2.5 times more) and Sri Lanka (3 times more) in 2021. It is also far behind BRICS nations (14-15 times more) and countries like Thailand and Malaysia (10 times more).

National Health Policy (NHP) 2017

Overview: The NHP 2017 is a detailed plan aimed at achieving Universal Health Coverage (UHC) in India. It addresses the changing disease patterns, rising healthcare costs, and the need for increased public investment to ensure fair, affordable, and quality healthcare for all citizens.

Main Goal: To provide comprehensive, free primary healthcare for everyone, linked to a health card.

Improving access: Ensuring affordable secondary and tertiary care through public hospitals and strategic purchasing from the private sector.

Reducing out-of-pocket expenses: Aiming to significantly lower out-of-pocket and catastrophic health expenditures.

Core Principles: The policy is based on 10 key principles, including Equity, Affordability, Universality, Patient-Centered & Quality Care, and Accountability.

Specific Targets: The policy sets several time-bound goals, such as:

• Increasing government health expenditure from 1.15% to 2.5% of GDP by 2025.
• Raising State health spending to over 8% of their budgets.
• Reducing Maternal Mortality Ratio (MMR) to 100 by 2020 and Under-Five Mortality to 23 by 2025.
• Reducing premature mortality from Non-Communicable Diseases (NCDs) by 25% by 2025.
• Achieving TB elimination by 2025 and maintaining the elimination of Kala-Azar and Leprosy.

Major Shifts Proposed:

• Preventive & Promotive Health: Advocating for a "Health in All" approach, focusing on areas like Swachh Bharat, balanced diets, tobacco control, and road safety.
• Organizing Healthcare Delivery: Shifting from selective to comprehensive primary care through 'Health and Wellness Centers' and ensuring free drugs, diagnostics, and emergency care in public hospitals.
• Strengthening Systems: Closing infrastructure and human resource gaps, particularly in underserved areas, and developing a robust Health Management Information System (HMIS).
• Engaging the Private Sector: Aligning the private sector with public health objectives through strategic purchasing and regulation.

Reasons for Low Public Health Spending in India

• Political Economy of "Visible" Infrastructure: Politically, spending on visible physical infrastructure (like roads and bridges) or direct cash transfers is more rewarding than investing in the gradual strengthening of public health. Public health improvements are long-term benefits with diffused returns, making them less attractive for immediate political gains.
• Fragmented Health Financing Architecture: India lacks a unified health financing pool dedicated solely to health. Health budgets are subject to annual political negotiations and compete with other sectors, unlike systems with dedicated health taxes or insurance funds that ensure stable financing.
• Weak "Health in All Policies" Approach: Although the NHP 2017 promotes this approach, key health determinants such as sanitation, nutrition, and air pollution are managed by different ministries with separate budgets. This fragmented handling underestimates the total public investment required for health and hinders coordinated resource allocation for comprehensive health outcomes.
• Dominance of Private Healthcare Narrative: The rapid expansion of the private healthcare sector fosters the perception that healthcare is primarily a private consumer good. This perception diminishes the urgency for public investment in healthcare, reducing pressure on the state to fund public health systems.
• Absence of Cost, Time-Bound Roadmaps: The NHP 2017 sets a target for health spending as a percentage of GDP, but lacks a legally binding, year-on-year implementation plan with mandatory milestones. This absence allows the target to remain aspirational rather than actionable, weakening accountability.

Necessary Steps to Increase Public Health Spending in India

• Enhance Fiscal Capacity: Improve government revenue by boosting the tax-to-GDP ratio through tax reforms, broadening the tax base, digital compliance, and rationalizing GST. Establish a health cess or increase GST on harmful goods to earmark funds for healthcare.
• Accelerate disbursement of health grants: Expedite the distribution of health grants from the 15th Finance Commission to develop infrastructure like Primary Health Centres (PHCs) and Community Health Centres (CHCs).
• Leverage Blended Finance: Expand blended finance models that combine public, philanthropic, and private capital. Strengthen the Pradhan Mantri Jan Arogya Yojana (PM-JAY) by subsidizing premiums for the "missing middle" and covering indirect costs to alleviate out-of-pocket expenses.
• Improve Efficiency and Accountability: Enhance procurement processes and adopt outcome-based budgeting to reduce wastage. Prevent leakages through Direct Benefit Transfers and ensure audit transparency by publishing health account reports.
• Reframe health as an economic investment: Shift the perception of health spending to an economic investment to foster political will. Rebalance budgets towards primary and preventive care, allocating two-thirds of health budgets to primary healthcare as per NHP 2017.
• Legal & Policy Reforms: Consider enacting a Right to Health Act to legally mandate adequate health provisioning. Explore amending the Constitution to include "public health" in the Concurrent List, strengthening national standards for health provisioning.

Conclusion

India's ongoing underinvestment in public health highlights a significant gap between policy and implementation as outlined in the National Health Policy 2017. Achieving objectives like Universal Health Coverage, reducing out-of-pocket expenses, and ensuring equitable healthcare will remain elusive without increased spending from the Union government, improved fiscal federalism, and legally backed financing mechanisms.

GS2/Polity

34th Foundation Day of National Commission for Women

Why in News?

•  The National Commission for Women (NCW) celebrated its 34th Foundation Day on January 31, reaffirming its commitment to safeguarding women's rights as India's leading statutory body. 
•  The event emphasized the importance of women's health as a fundamental aspect of empowerment and nation-building, under the theme "Swasthya hi Sashaktikaran" (Health is Empowerment). 

About the National Commission for Women (NCW)

• Establishment: The NCW is a statutory body set up on January 31, 1992, under the National Commission for Women Act, 1990. 
• Mandate: Its primary role is to review constitutional safeguards for women, recommend legislative measures, and facilitate the redressal of grievances. 
• Background: The NCW was established based on recommendations from the Committee on the Status of Women in India (CSWI) and the National Perspective Plan for Women (1988-2000). 
• Constitution: The Central Government nominates the Commission, ensuring representation from various fields relevant to women's welfare. 
• Composition: The Commission includes a Chairperson, five members with expertise in law, trade unionism, management, women's organizations, administration, or social welfare, and a Member-Secretary. At least one member must belong to the Scheduled Castes and one to the Scheduled Tribes. All members serve for three years or until the age of 65. 

Functions and Powers

• Investigation: The NCW investigates issues related to constitutional safeguards for women. 
• Reporting: It submits annual reports to the Central Government on the effectiveness of safeguards and recommends improvements. 
• Legislative Review: The Commission reviews existing laws affecting women and suggests necessary amendments. 
• Suo Moto Notice: It takes initiative to address issues of rights deprivation, non-implementation of laws, and policy non-compliance. 
• Research and Studies: The NCW conducts research to identify barriers to women's advancement and funds litigation for issues impacting large groups of women. 
• Inspections: It inspects jails, remand homes, and women's institutions to ensure proper conditions. 
• Powers: The NCW has civil court powers, including summoning individuals, examining witnesses, calling for documents, and receiving evidence on affidavits. 
• Limitations: Despite its powers, the NCW is often seen as a "toothless tiger" due to its recommendatory nature and limited enforcement capabilities. 

Recent Initiatives

• Helplines: The NCW has launched a WhatsApp helpline and a 24x7 Women Helpline for online support, psychological counseling, and connections to police and hospitals. 
• Mahila Jan Sunwai: This pilot project aims to expedite complaint resolutions through in-person and online hearings. 
• Capacity Building: In collaboration with LBSNAA, the NCW trains Protection Officers under the Domestic Violence Act, 2005, to sensitize police personnel on gender issues. 
• "She is a Changemaker" - Women in Politics: This program supports women's leadership and political participation by providing training in public policy, gender-responsive governance, communication, and leadership skills. 
• Cyber Safety: The NCW conducts research on cyber threats to women and runs awareness campaigns on "Misogyny Online" and social media responsibility. 

GS2/ Polity

Menstrual Health Fundamental Right under Article 21: SC

Why is it News? 

• In the case of Dr. Jaya Thakur v. Union of India, the Supreme Court of India has declared that the right to menstrual hygiene is a fundamental part of the right to life as stated in Article 21 of the Constitution.

Key Highlights of Judicial Intervention

• Fundamental Right: The court recognized menstrual health as a crucial aspect of the Right to Life (Article 21) and the Right to Education (Article 21A). It stated that lacking access to menstrual hygiene undermines the right to participate equally in schools, which is protected under Article 14.
• Free Bio-degradable Pads: The court ordered that all government and private schools must provide free bio-degradable sanitary napkins to girl students from Classes 6 to 12.
• Mandatory Infrastructure: Schools are required to have functional, gender-segregated toilets with water facilities. Private schools that do not comply risk losing their recognition.
• Stigma Reduction: The National Council of Educational Research and Training (NCERT) was directed by the court to include gender-responsive curricula to educate both boys and girls, aiming to eliminate the culture of silence and stigma surrounding menstrual health.

Article 21 of the Constitution

• Article 21 is a part of the Fundamental Rights enshrined in Part III of the Constitution. It is applicable to all individuals, including both citizens and non-citizens.
• The article states that no person shall be deprived of their life or personal liberty except through a procedure established by law. This provision restricts the state from interfering arbitrarily in an individual's life and liberty.
• Over time, the Supreme Court has interpreted Article 21 to impose positive obligations on the state, ensuring a dignified life for individuals. This expanded scope includes various rights such as:
• Right to live with human dignity
• Right to privacy (as established in the Puttaswamy case in 2017)
• Right to livelihood (as per the Olga Tellis case)
• Right to health and medical care
• Right to a clean environment
• Right to legal aid and a speedy trial
• Right to education (later explicitly mentioned in Article 21A)
• Protection against custodial torture
• Right to sleep, shelter, and food

Menstrual Health Related Policy of Government of India

• Menstrual Hygiene Scheme (MHS): Supported by the National Health Mission (NHM), where ASHAs distribute packs of 6 napkins (Freedays) at a subsidized rate of ₹6.
• PM Bharatiya Janaushadhi Pariyojna: Over 16,000 Kendras provide 'Suvidha' (Oxo-biodegradable pads) at ₹1 per pad.
• Samagra Shiksha: Funds the installation of vending machines and incinerators. States must now prioritize bio-degradable options following the 2026 Supreme Court ruling.
• Swachh Bharat Mission (Grameen) Phase 2: Focuses on Menstrual Waste Management (MWM) using small-scale incinerators and deep burial pits to prevent environmental clogging.
• Menstrual Hygiene Policy (2024-25): Formulated by the Ministry of Health, it streamlines access to low-cost products, prioritizes "Green" (biodegradable) initiatives, and integrates MHM into the formal school curriculum.
• Standardization of Products: The Department of Health Research is studying sustainable alternatives like menstrual cups and recyclable pads to evaluate their safety and feasibility among rural women.

GS3/Science and Technology

Space Spinoffs

​Why in News?

Space exploration has led to significant advancements in healthcare technology, creating a strong foundation for modern diagnostics, medical devices, and healthcare delivery systems on Earth.

What are Space Spinoffs?

• Space spinoffs refer to civilian applications of technologies that were initially developed for space missions.
• NASA has documented over 2,000 such spinoffs since 1976, while ISRO has transferred more than 350 technologies to Indian industries, including the health and biomedical sectors.

Key Healthcare Transformations from Space Research

• Diagnostics and Medical Imaging: Digital image-processing techniques used in MRI, CT scans, ultrasound, and mammography originated in planetary and astronomical image analysis.
• Point-of-Care Diagnostics: Miniaturized blood analyzers and lab-on-chip devices emerged from the need for medical testing in microgravity.
• Wearables and Biomedical Monitoring: Modern wearables such as ECG, heart rate, and respiration trackers evolved from astronaut biotelemetry systems.
• Infection Control and Hospital Safety: Air and water purification systems, including HEPA filters and catalytic oxidizers, were developed for closed spacecraft.
• Telemedicine and Health Logistics: Satellite-based telemedicine enables remote consultations, disaster response, and teleradiology. Earth-observation satellites support disease surveillance, epidemiological mapping, and disaster health assessment. Solar-powered vaccine refrigerators and drone-based medical delivery rely on satellite navigation and communication.
• Healthcare Systems and Clinical Practice: Studies on bone loss, muscle atrophy, and cardiovascular deconditioning in astronauts have enhanced understanding of conditions such as osteoporosis, sarcopenia, ageing, and the effects of prolonged bed rest on Earth. Research in radiobiology from deep-space missions informs cancer risk assessment and radiotherapy safety.
• Medical Devices and Interventions: Expertise in fluid dynamics has contributed to the development of compact ventricular assist devices with low blood-shear stress. Advances in radiation-hardened electronics and miniaturization have supported the evolution of programmable pacemakers and cardiac rhythm management devices.

GS1/Geography

Bomb Cyclone

Why is it Newsworthy?

• A bomb cyclone is predicted to bring another wave of heavy snow and severe winter weather to the eastern United States.

Bomb Cyclone: What Is It?

• A bomb cyclone happens when the pressure of a low-pressure system drops by at least 24 millibars within 24 hours. This rapid decrease in pressure strengthens the winds due to the increased pressure difference, a process known as bombogenesis.
• It occurs when cold polar air meets warm subtropical air, often over warm ocean currents. The rapid intensification is driven by the temperature difference and the latent heat released during condensation.
• Bomb cyclones usually form over the western North Atlantic, where cold air from North America encounters warm air from the Atlantic. The Gulf Stream often helps to intensify these storms.
• These cyclones bring heavy precipitation, including intense snowfall, and can create blizzard conditions. During the rapid intensification phase, they may also produce occasional lightning.