UPSC Daily Current Affairs: 2026-02-08

Table of Contents
1. India-US Interim Trade Agreement (ITA) - Towards a Strategic Bilateral Trade Architecture
2. India's Strategy to Tackle the Mental Health Burden
3. India-US Trade Pact Opens GPU Access and Data Centre Investment
4. Why AYUSH Received a Major Push in the Union Budget 2026-27
5. Scope of the "right to be forgotten" (RTBF)
6. Government Lays Down Eligibility Criteria For 'Deep Tech' Start-ups
7. RBI Holds Repo Rate at 5.25 per cent
8. Agni-3 Intermediate Range Ballistic Missile
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GS2/International Relations

India-US Interim Trade Agreement (ITA) - Towards a Strategic Bilateral Trade Architecture

Why in News?

The United States and India have reached an agreement on a Framework for an Interim Trade Agreement (ITA). This agreement aims to yield early trade benefits while the negotiations continue for a more comprehensive US-India Bilateral Trade Agreement (BTA), which was initiated in February 2025 by President Donald Trump and Prime Minister Narendra Modi. The framework is a response to evolving geopolitical realities, particularly concerning China's influence, the need for supply chain diversification, energy security issues, and competition in technology, which have all intensified the urgency for bilateral trade discussions.

Key Takeaways

• The Interim Trade Agreement is designed as a reciprocal and mutually beneficial arrangement.
• India will commit to tariff reductions and addressing non-tariff barriers.
• The US will provide tariff reductions on several Indian exports, while imposing reciprocal tariffs on others.
• Both countries aim to enhance cooperation in technology and supply chains.

Additional Details

• Nature and Scope of the Interim Agreement: This agreement is intended to generate early trade benefits and serve as a stepping stone towards a comprehensive BTA, reflecting renewed momentum in India-US relations.
• India's Commitments: India will eliminate or reduce tariffs on various US industrial goods and agricultural products. It will also address non-tariff barriers, including import licensing delays and standards-related restrictions.
• US Commitments: The US will remove tariffs on certain Indian exports, including generic pharmaceuticals and gems, but will maintain an 18% reciprocal tariff on several Indian goods.
• Trade, Technology and Supply Chain Cooperation: India plans to invest $500 billion in US goods over five years, focusing on high-tech products and fostering digital trade agreements aimed at reducing barriers.
• Strategic Significance: The agreement is driven by geopolitical factors and aims to enhance market access while reinforcing India's role in global supply chains.
• Key Challenges: Issues such as agricultural sensitivities, reciprocal tariffs, and digital trade disputes present challenges that need to be addressed for successful implementation.
• Way Forward: Recommendations include fast-tracking the agreement, building trust through early implementation, and aligning digital governance frameworks with global standards.

The India-US Interim Trade Framework signifies more than just tariff adjustments; it represents a strategic recalibration of economic ties in response to shifting global dynamics. If effectively implemented, it could redefine the economic relationship between India and the US, bolster supply chain resilience, and solidify India's position within the contemporary global trade landscape.

GS2/Governance

India's Strategy to Tackle the Mental Health Burden

Why in News?

The recent Economic Survey has highlighted a concerning increase in digital addiction and screen-related mental health issues, particularly among children and adolescents. In response to these challenges, the Union Budget announced on February 1 aims to enhance India's mental health infrastructure.

Key Takeaways

• Proposal for a second National Institute of Mental Health and Neuro Sciences (NIMHANS) in northern India.
• Plans to upgrade leading mental health institutions in Ranchi and Tezpur.
• Focus on improving regional access and expanding specialized mental healthcare services.

Additional Details

• Mental Health Crisis: India accounts for nearly one-third of global cases of suicide, depression, and addiction, marking mental health as a major public health challenge.
• High Suicide Rates Among Youth: Data indicates that suicide is a leading cause of death for individuals aged 15-29, with young people facing vulnerabilities due to academic pressures, unemployment, social stress, and digital addiction.
• Economic Impact: The World Health Organization (WHO) estimates that India may lose $1.03 trillion from 2012 to 2030 due to mental health issues, attributable to decreased productivity, healthcare costs, and premature mortality.
• Treatment Gap: A significant treatment gap exists, with 70% to 92% of individuals with mental disorders lacking adequate care due to factors like stigma and a shortage of trained professionals.
• Shortage of Mental Health Professionals: India has only 0.75 psychiatrists per 100,000 people, far below the WHO recommendation of 3 per 100,000, which restricts access to essential mental health services.
• Low Budgetary Allocation: Despite an increase in overall health spending, mental health receives only about 1% of the total health budget, limiting the development of necessary infrastructure and services.
• Integration into Primary Healthcare: The government is incorporating mental healthcare into primary health services through Ayushman Bharat, with over 1.73 lakh health centres now providing basic mental health screenings and referrals.
• Strengthening Specialist Capacity: Initiatives include establishing over 20 Centres of Excellence for mental health training and expanding postgraduate departments nationwide.
• Tele-Mental Health Support - Tele MANAS: Launched on October 10, 2022, Tele MANAS provides 24/7 free mental health support via helplines and operates across multiple states, bridging access gaps in remote areas.

In conclusion, while India is making strides in addressing mental health challenges through new initiatives and funding increases, significant gaps in treatment, funding allocation, and professional availability remain. The shift towards preventive and community-based care is essential to effectively tackle the mental health burden and improve overall societal well-being.

GS2/International Relations

India-US Trade Pact Opens GPU Access and Data Centre Investment

Why in News?

India and the United States have reached an interim trade agreement to significantly enhance trade in technology products, specifically focusing on Graphics Processing Units (GPUs) and essential equipment for data centres. This development aims to strengthen India's digital and AI ecosystem amid increasing investments in technology.

Key Takeaways

• India is set to increase imports of GPUs from US firms to support growing AI startup demands.
• A tax holiday for foreign data centre investments has been announced, signaling India's commitment to becoming a digital hub.
• Major US tech companies are making substantial investments in India's data centre infrastructure.

Additional Details

• GPU Manufacturing: India currently lacks domestic GPU manufacturing capabilities and will rely on imports, notably from US companies like Nvidia, to meet the rising demand from AI startups.
• AI Mission Funding: The allocation for India's AI mission has been reduced to ₹1,000 crore for 2026-27, down from ₹2,000 crore, raising concerns about the momentum of India's AI initiatives.
• This trade agreement contrasts with previous export controls under the Biden administration, which restricted India's GPU imports for national security reasons.
• Strategic Positioning: India has managed to avoid stringent export controls similar to those placed on China, positioning itself as a reliable technology partner.
• Tax Incentives: India has introduced a tax holiday until 2047 for foreign companies establishing data centres, responding to US demands and enhancing the investment climate.
• Significant investments from US tech giants include:
  • Google: $15 billion for a 1 GW data centre with Adani Group.
  • Microsoft: $17.5 billion focused on AI data centres.
  • Amazon: $35 billion planned over five years for data centre expansion.

In summary, the India-US trade pact marks a pivotal shift in technology cooperation, offering new opportunities for India to enhance its AI infrastructure and integrate more deeply with global supply chains.

GS2/Governance

Why AYUSH Received a Major Push in the Union Budget 2026-27

Why in News?

The Union Budget 2026-27 has notably increased allocations for the AYUSH sector while introducing significant institutional and regulatory initiatives aimed at expanding its presence both domestically and globally.

Key Takeaways

• AYUSH funding increased to Rs. 4,408 crore, a substantial rise from previous years.
• Three new All-India Institutes of Ayurveda to be established as centers of excellence.
• Enhanced funding for the WHO Global Traditional Medicine Centre in Jamnagar.
• Opportunities for AYUSH practitioners in the EU due to the India-EU Free Trade Agreement.

Additional Details

• AYUSH: Stands for Ayurveda, Yoga & Naturopathy, Unani, Siddha, and Homoeopathy, representing India's traditional medicine systems alongside modern healthcare.
• National AYUSH Mission (NAM): Aims to integrate AYUSH services into primary healthcare by co-locating AYUSH facilities with existing health centers.
• Regulatory Oversight: Managed by the National Commission for Indian System of Medicine and the National Commission for Homoeopathy, ensuring safety and standards in AYUSH practices.
• Budgetary Expansion: The increase in funding reflects a long-term policy shift to mainstream AYUSH in India's healthcare framework, with a focus on quality and accessibility.
• India-EU FTA: Opens new markets for AYUSH services and products, facilitating easier export and recognition of Indian traditional knowledge.

In conclusion, the significant push for the AYUSH sector in the Union Budget 2026-27 marks a strategic move by the Indian government to not only enhance the role of traditional medicine within the national healthcare system but also to establish India as a leader in global traditional medicine practices.

​GS2/ Polity and Governance

Scope of the "right to be forgotten" (RTBF)

Why in News?

The Supreme Court has issued a notice regarding a plea that challenges a December 2022 ruling by the Delhi High Court. This ruling ordered the removal of past news reports about a banker who was discharged in a money laundering case. The case raises important questions about the extent of the "right to be forgotten" (RTBF).

Background and Origin of Right to be Forgotten

• The Right to be Forgotten emerged from a 2014 ruling by the European Court of Justice in the Google Spain case. In this case, a Spanish individual requested the removal of outdated information concerning his past debts.
• Subsequently, this principle was integrated into the European Union's General Data Protection Regulation (GDPR) through Article 17. This article establishes the right to erasure while also outlining conditions under which this right may be restricted.

What is the Right to be Forgotten?

• The Right to be Forgotten allows individuals to remove or erase content so that it is no longer accessible to the general public.
• This right empowers individuals to have information, such as news articles, videos, or photographs, deleted from internet records. As a result, this information does not appear in search engine results, as seen in the current case involving Google.

Importance

• Protection of Privacy: The right safeguards individuals from the lasting impact of outdated or irrelevant personal information.
• Digital Dignity: It ensures that past mistakes or allegations do not lead to a permanent negative reputation.
• Global Alignment: The right aligns India with international standards, such as the European Union's General Data Protection Regulation (GDPR).
• Balanced Rights: It strikes a balance between individual privacy and the freedoms of the press and public interest.
• Rehabilitation: The right supports the rehabilitation and reintegration of individuals, particularly those who have been acquitted or have served their sentences.

Challenges

• Content removal requests may conflict with press freedom and raise concerns about censorship.
• Courts face the challenge of determining when privacy interests outweigh legitimate public interests.
• The Digital Personal Data Protection Act, 2023, provides limited recognition of the Right to be Forgotten and lacks clear procedures for its implementation.
• Removing data from various platforms, archives, and search engines is a complex and challenging task.
• A potential increase in Right to be Forgotten petitions could place a strain on court resources and capacity.
• Influential individuals might misuse the Right to be Forgotten to conceal past wrongdoings, undermining transparency.

The law on the Right to be Forgotten

• Section 43A of the Information Technology Act, 2000: This section holds organizations accountable for failing to protect sensitive personal data, allowing individuals to claim damages.
• IT Rules, 2021: While not recognizing the Right to be Forgotten, these rules offer a grievance mechanism for removing content that exposes personal information.
• Digital Personal Data Protection Act, 2023: This act, along with the DPDP Rules, 2025, establishes a citizen-centric data protection framework in India. It emphasizes principles such as consent, transparency, security, and accountability, defines key data roles, creates the Data Protection Board of India for enforcement, and imposes severe penalties for violations. This framework aims to enhance privacy and trust in India's digital ecosystem.

Judicial observations

• The "right to be forgotten" is not explicitly stated in Indian law but has been recognized by courts as part of the Right to Privacy under Article 21 of the Constitution. This recognition dates back to the Supreme Court's 2017 ruling in K.S. Puttaswamy vs Union of India.
• In this case, the Supreme Court acknowledged the right to remove personal data that is no longer necessary, relevant, accurate, or desired to be processed. However, the Court clarified that this right is not absolute and can be limited by factors such as freedom of expression, legal obligations, public interest, public health, research, or legal claims.
• For instance, in the case of Jorawar Singh Mundy vs Union of India (2021), the Delhi High Court applied the right to be forgotten by ordering the removal of online records related to a narcotics case in which the petitioner had been acquitted. The Court noted that the continued online presence of this information was harming the petitioner's employment prospects, despite his acquittal.

Way Ahead

• The Right to be Forgotten in India is at a crucial juncture, necessitating a careful balance between individual privacy and the principles of free speech, public interest, and technological feasibility.
• Moving forward, it is essential to establish a clear and comprehensive legal framework that defines the limits of the Right to be Forgotten. This framework should include independent oversight for adjudicating requests and consistent judicial guidance to ensure uniformity in decision-making.
• Adopting proportionality-based standards is vital to ensure that requests for data removal are evaluated fairly and justly. Strengthening technological cooperation with digital platforms will facilitate the effective implementation of the Right to be Forgotten.
• Increasing public awareness about the Right to be Forgotten and its implications is crucial for its successful integration into the legal framework. Finally, embedding safeguards against the misuse of this right will be essential to prevent potential abuses and ensure that it aligns with constitutional values and democratic accountability.

GS3/ Science and Technology

Government Lays Down Eligibility Criteria For 'Deep Tech' Start-ups

Why in News?

• The Union Government has officially defined "Deep Tech Start-ups" through a gazette notification issued by the Department for Promotion of Industry and Internal Trade (DPIIT).

What is deep technology?

• Deep tech encompasses advanced and disruptive technologies that have the potential to bring about transformative change and offer solutions for the future.
• This term is used to describe cutting-edge research in various fields such as nanotechnology, biotechnology, material sciences, quantum technologies, semiconductors, artificial intelligence, data sciences, robotics, and 3D printing.

Eligibility Criteria for Deep Tech Start-up

• As per the DPIIT notification, a deep tech start-up must:
• Allocate the majority of its budget to research and development (R&D) activities.
• Possess or be in the process of creating significant novel intellectual property (IP) and taking steps to commercialize it.
• Encounter extended development timelines, long gestation periods, high capital and infrastructure requirements, along with considerable technical or scientific uncertainty.
• A start-up is defined as a company that is less than 10 years old with an annual turnover of less than ₹200 crore. However, a deep tech company can consider itself a start-up for up to 20 years with a turnover of up to ₹300 crore.
• Certification Mechanism: To be recognized as a deep tech start-up, companies must apply to the DPIIT for certification. The decisions are made based on guidance from an Inter-Ministerial Board of Certification, which includes:
• Joint Secretary, DPIIT (Convener)
• Representative from Department of Science and Technology (DST)
• Representative from Department of Biotechnology (DBT)
• Prohibitions: The start-up is prohibited from investing in activities that are not directly related to its core mandate of creating new knowledge, such as real estate or speculative assets.

Significance of India's Deep-Tech Ambitions

• Global Leadership: Positions India as a trusted R&D hub in the "China+1" global landscape, leveraging its vast STEM talent pool to lead in frontier technologies like Quantum Computing and 6G.
• Technological Sovereignty: Reduces critical reliance on foreign imports for national security, defense, and space, ensuring India isn't vulnerable to global supply chain disruptions.
• Solving Local Challenges: Enables India-first solutions for massive social hurdles, such as AI for rural healthcare, precision agriculture for food security, and green hydrogen for energy independence.
• Economic Value: A robust deep-tech ecosystem enables India to move up the global value chain, shifting from low-cost services and assembly-based manufacturing to high-value research, design, and intellectual property creation.

Challenges

• Deep tech often requires large upfront investments and long development timelines, making it less attractive to traditional venture capital.
• Limited access to specialized labs, supercomputing, and testing facilities slows innovation.
• A shortage of specialized research talent and relatively low industry-linked R&D spending compared to global peers hinders progress.
• Deep tech solutions often face regulatory and adoption barriers that delay commercialization.

Way Ahead

• India needs to strengthen:
• R&D, IP, and regulatory support to unlock deep tech's potential.
• Build talent through industry-academia collaboration, promote global partnerships, and encourage market adoption.
• With policy backing and funding, deep-tech startups are poised to drive innovation and economic growth.

Research Development and Innovation (RDI) Scheme Fund

• The scheme has an outlay of Rs 1 lakh crore over 6 years, with Rs 20,000 crore allocated for FY 2025-26, funded from the Consolidated Fund of India.
• The Department of Science and Technology (DST) will serve as the nodal department for implementation of the RDI Scheme.
• Key objectives of the Scheme are as follows;
• Encourage the private sector to scale up research, development, and innovation (RDI) in sunrise domains and in other sectors relevant for economic security, strategic purpose, and self-reliance,
• Finance transformative projects at higher levels of Technology Readiness Levels (TRL),
• Support acquisition of technologies which are critical or of high strategic importance,
•  Facilitate setting up of a Deep-Tech Fund of Funds.

 GS3/ Indian Economy

RBI Holds Repo Rate at 5.25 per cent

Why is it Newsworthy?

• The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 5.25%.
• The MPC has made slight adjustments to its projections for GDP growth and retail inflation for FY26.
• Inflation trends are currently stable, with projections for CPI inflation in Q1-Q2 FY27 being slightly raised due to increases in precious metal prices.

What Does the Repo Rate Mean?

The repo rate is the interest rate at which the RBI lends money to commercial banks for the short term. It is a crucial tool used by the RBI to manage liquidity, inflation, and economic growth.

• When the repo rate is lower, banks can borrow from the RBI at reduced rates. This encourages banks to lower their lending rates, resulting in:
• Easier access to credit for individuals and businesses.
• Increased investment, consumption, and overall economic activity.
• Higher liquidity and money supply.
• Stimulating growth, particularly during economic downturns.

Understanding the Monetary Policy Committee (MPC)

• The MPC is a legally established body under the RBI Act of 1934, amended in 2016.
• Its primary responsibility is to set the benchmark interest rate (repo rate) to ensure price stability while considering economic growth.
• The committee comprises six members: three from the RBI, including the Governor who acts as the Chairperson, and three external members appointed by the government.
• Decisions within the MPC are made by a majority vote, with each member having one vote. In the event of a tie, the RBI Governor has the deciding vote.

Flexible Inflation Targeting Framework (FITF)

• India adopted the Flexible Inflation Targeting Framework (FITF) in 2016.
• Under this framework, the government, in consultation with the RBI, sets an inflation target every five years.
• The current inflation mandate, effective until March 31, 2026, targets a Consumer Price Index (CPI) inflation rate of 4%, with a tolerance band of ±2%. This means the inflation rate should be between 2% and 6%.

Reasons for the Recent Policy Decision

• Strong Growth Momentum: Real GDP growth is strong, driven by robust domestic consumption, income tax relief, Goods and Services Tax (GST) rationalisation, and fiscal measures from the Union Budget.
• External Sector Risks: Increasing geopolitical tensions, fluctuating crude oil prices, and differing global monetary policies present risks to capital flows and exchange rate stability. Pausing the rate hike helps maintain macroeconomic stability.
• Inflation Within Target: Retail inflation is within the target range of 2-6%, and core inflation is under control, reducing the need for immediate policy changes.
• Positive Impact of Trade Agreements: Recent trade agreements with the United States, the European Union, Oman, and New Zealand are expected to enhance exports and investments, decrease external vulnerabilities, and support medium-term economic growth.

Effects on the Indian Economy

• Impact on Borrowers and Households: Keeping interest rates stable reduces financial uncertainty for middle-class families and those with housing loans.
• Influence on Investment and Credit Growth: Stable interest rates, coupled with strong demand and trade agreements, foster a predictable environment for private investment.
• Reinforcement of Macroeconomic Stability: The decision bolsters the credibility of India's Flexible Inflation Targeting framework and showcases stability in monetary policymaking.

Future Considerations

• Monetary Transmission: Ensure the effective transmission of previous rate cuts through the banking system to facilitate credit flow to productive sectors.
• External Sector Stability: Engage in active liquidity management, prudent deployment of foreign exchange reserves, and monitoring of global financial conditions to mitigate external shocks.
• Fiscal-Monetary Coordination: Continue fiscal consolidation while targeted public spending to complement monetary policy and sustain long-term growth without triggering inflationary pressures.

GS3/ Defence and Security

Agni-3 Intermediate Range Ballistic Missile

India recently conducted a successful test-firing of the nuclear-capable Agni-3 ballistic missile from Chandipur, Odisha. This missile has a strike range exceeding 3,000 kilometers. 

Agni-3 ballistic missile

• The Agni-3 ballistic missile has been developed by the Defence Research and Development Organisation (DRDO) of India.
• It is a two-stage missile powered by solid fuel, with a strike range that exceeds three thousand kilometres.
• The missile is capable of carrying both conventional and nuclear warheads.
• The Agni-III missile has been part of the Strategic Forces Command since 2011.
• This successful test highlights India's ongoing commitment to strengthening its strategic deterrence and maintaining high levels of operational readiness.

Agni

• The Agni missile system is India's own long-range missile developed by the Defence Research and Development Organisation (DRDO).
• It serves as the primary land-based nuclear delivery platform for the country.
• The Agni series includes various missiles with different ranges and capabilities:
• Agni-I to Agni-IV: These missiles have a range of 700 to 3,500 kilometres and can carry payloads ranging from 12 to 40 kilotonnes. They were developed in the 1990s and deployed in the mid-2000s.
• Agni-V: This is a three-stage solid-fuel missile capable of Multiple Independent Reentry Vehicle (MIRV) technology. It has a range of up to 5,000 kilometres, with the potential for intercontinental range exceeding 5,500 kilometres.
• Agni-P: This is a two-stage solid-fuel missile weighing 11,000 kilograms, with a range of 1,000 to 2,000 kilometres. It incorporates advanced propulsion and navigation systems and can carry high-explosive, thermobaric, or nuclear warheads.