UPSC Daily Current Affairs: 2026-02-12
GS3/Economy
Network Readiness Index 2025
Why in News?
India has made notable progress in its position within the Network Readiness Index (NRI) for 2025, climbing four ranks to achieve the 45th position. This index evaluates how well economies utilize information and communication technologies to foster growth, innovation, and social development.
Key Takeaways
- India improved its score from 53.63 in 2024 to 54.43 in 2025.
- The United States remains the top-ranked country for the fourth year in a row.
- India ranks first in several specific categories like telecommunication investments and AI publications.
Additional Details
- Methodology: The NRI assesses the network readiness landscape of 127 economies across four pillars: Technology, People, Governance, and Impact, utilizing a total of 53 indicators.
- Publishing Agency: The report is published by the Portulans Institute, an independent non-profit based in Washington DC.
- Income Group Performance: India ranks 2nd among lower-middle-income countries, indicating a strong performance in network readiness relative to its income level.
- Countries like Venezuela and Chad were dropped from the index due to insufficient data coverage.
- Global Leadership: India has achieved the highest rank in categories such as annual investments in telecommunications, AI scientific publications, and ICT services exports.
This improvement in India's ranking and score signifies a positive trend in the country's digital infrastructure and technological capabilities, which are crucial for future economic growth and innovation.
GS2/Polity
Judicial Intervention in Religious Disputes: Constitutional Evolution and Limits
Why in News?
Recent rulings from the Madras High Court regarding the recitation rights of the Thiruparankundram Deepathoon and the Thenkalai sect illustrate the ongoing constitutional involvement of courts in religious disputes. These cases highlight that temples function as public institutions, not as private entities, and are thus subject to constitutional oversight. The rise in litigation signifies an ongoing struggle between the autonomy of religious denominations and the principles of constitutional morality.
Key Takeaways
- The nature of temple disputes has shifted from civil rights issues to constitutional matters following the establishment of the Indian Constitution.
- The introduction of Articles 25 and 26 has transformed how courts adjudicate on matters of religious disputes.
- Judicial approaches, such as the Essential Religious Practices doctrine, have evolved to balance religious freedoms with constitutional principles.
Additional Details
- Civil Rights Character: In the case of Sankaralinga Nadan vs Raja Rajeswara Dorai (1908), temple entry disputes were viewed as civil rights issues rather than constitutional questions.
- Legislative Supervision: The Madras Hindu Religious Endowments Act of 1927 established state oversight over temple administration and finances, marking a significant shift in governance.
- Constitutional Transformation: Post-1950, Articles 25 and 26 began to frame temple disputes within the context of fundamental rights.
- Judicial Centrality: Constitutional courts emerged as key arbiters in achieving a balance between equality and religious autonomy.
- Essential Religious Practices Doctrine: The Supreme Court developed the ERP test to differentiate between essential religious protections and secular practices, allowing for state regulation where necessary.
- The Sabarimala case (Indian Young Lawyers Association, 2018) reinforced that even essential religious practices must align with constitutional morality.
- Contemporary tensions persist as Article 26 rights frequently clash with individual equality guarantees, raising questions about judicial overreach and the interpretative nature of constitutional morality.
- To address these challenges, the judiciary could adopt a proportionality framework, ensure clearer legislative parameters, and encourage internal grievance mechanisms within religious institutions.
In conclusion, judicial review of religious practices serves as a constitutional necessity. The objective should not be to withdraw courts from these disputes but to refine judicial tools that harmonize religious faith with constitutional supremacy.
GS3/Economy
16th Finance Commission and Centre-State Fiscal Relations
Why in News?
The 16th Finance Commission has submitted its report for the period 2026-31, and the Union government has accepted its recommendations regarding tax devolution to States.
Key Takeaways
- The Finance Commission plays a crucial role in the distribution of tax revenues between the Centre and States.
- Vertical and horizontal devolution are key components of fiscal federalism in India.
- States have made significant demands regarding their share in tax revenues.
Additional Details
- Fiscal Federalism: India's fiscal federal structure is anchored in Article 270 and Article 280 of the Constitution. Article 270 outlines the distribution of net tax proceeds, while Article 280 mandates the formation of a Finance Commission every five years to recommend the distribution process.
- Taxes Shared: The taxes shared between the Centre and States include Corporation Tax, Personal Income Tax, Central Goods and Services Tax (CGST), and the Centre's share of Integrated GST (IGST). However, cess and surcharge levied by the Centre are excluded from the divisible pool, which constitutes approximately 81% of the Centre's gross tax revenue for 2025-26.
- Vertical Devolution Evolution:
- Until the 13th Finance Commission (2010-15), States received 32% of the divisible pool, along with conditional transfers.
- The 14th Finance Commission (2015-20) increased this share to 42% and rationalised many tied transfers.
- The 15th Finance Commission (2020-26) adjusted the share to 41% following the reorganisation of Jammu and Kashmir.
- Horizontal Devolution Criteria: This refers to the distribution of the States' share among individual States, based on factors such as equity (income distance), population, area, and efficiency parameters like forest cover and tax effort.
- States' Demands:
- Many States advocated for an increase in vertical devolution, with 18 States requesting a rise from 41% to 50%.
- States like Maharashtra and Karnataka sought to include their contributions to GDP as a criterion for horizontal devolution, highlighting the tension between redistribution and rewarding performance.
- Recommendations of the 16th Finance Commission:
- The Commission rejected proposals to cap or include cess and surcharge in the divisible pool.
- It maintained the States' share at 41%, stressing that States already receive substantial tax revenues.
- A new criterion based on States' contribution to GDP was introduced, allowing for gradual changes in shares while recognizing efficiency.
- Broader Fiscal Observations:
- The Centre should decrease its reliance on cess and surcharge.
- States need to enhance the efficiency of subsidies and control fiscal deficits.
- Reforms in the power sector and public sector enterprises are necessary for fiscal sustainability.
These recommendations reflect ongoing concerns over fiscal sustainability and the principles of cooperative federalism.
Related Reading for GS2: Finance Commission
GS2/Governance
Civil Services Reforms - Performance Scorecards for Union Secretaries
Why in News?
The Cabinet Secretariat has implemented performance scorecards for Union Secretaries, signifying a transformative change in how senior civil servants at the national level are evaluated. This initiative is a crucial aspect of ongoing Civil Services reforms.
Key Takeaways
- The scorecards assess secretaries based on approximately a dozen quantifiable criteria.
- There is a focus on output delivery, with negative marking for lapses.
- The framework draws inspiration from corporate-style Key Performance Indicators (KPIs).
Additional Details
- Performance Assessment Criteria:The scorecards evaluate secretaries on measurable administrative outputs such as:
- Timely implementation of responsibilities, including file disposal rates and reduction of pendency.
- Budgetary discipline through expenditure control.
- Measurable project delivery.
- Omitted Dimensions:The scorecards do not account for crucial roles such as:
- Policy formulation and strategic advice.
- Ensuring proposals are administratively feasible, fiscally sustainable, and politically viable.
- Anticipating unintended consequences.
- Preserving institutional continuity and memory.
- Encouraging critical evaluation and dissent.
- Constitutional and Institutional Concerns:Under Article 312 of the Indian Constitution, the All-India Services are meant to serve as:
- Instruments of national integration.
- Impartial and politically neutral administrators.
- Custodians of federal balance and institutional memory.
This reform raises significant concerns about redefining the role of civil servants from policy stewards to mere implementation managers. The emphasis on speed and efficiency risks undermining long-term policy continuity and the foundational principles of an independent civil service. Effective governance necessitates a balance between accountability and the preservation of institutional memory, judgement, and dissent.
GS3/Economy
Carbon Capture to Drive India's Green Steel Transition
Why in News?
The Prime Minister recently highlighted an article discussing the importance of Carbon Capture, Utilisation and Storage (CCUS) in reducing carbon emissions in India's steel sector. This initiative aligns with India's commitment to achieving Net Zero emissions by 2070.
Key Takeaways
- India ranks as the second-largest producer of crude steel in the world.
- Steel production is projected to reach approximately 152 million tonnes in FY 2024-25.
- According to the National Steel Policy 2017, the production targets are:
- 300 million tonnes by 2030-31
- 500 million tonnes by 2047
- Steel production contributes about 10% to 12% of India's total greenhouse gas emissions due to reliance on coal-based blast furnaces and direct reduced iron processes.
What is CCUS?
- Carbon Capture, Utilisation and Storage (CCUS): This technology involves capturing carbon dioxide emissions from industrial processes, either utilising it for various industrial applications or storing it underground to mitigate its release into the atmosphere.
- CCUS addresses emissions that cannot be completely eliminated through energy efficiency or renewable energy sources alone.
Government Measures
- Green Steel Taxonomy: This initiative sets an emission intensity benchmark of less than 2.2 tonnes of CO2 equivalent per tonne of finished steel and introduces a star rating framework.
- National Green Hydrogen Mission: An allocation of ₹455 crore has been made for pilot projects aimed at the steel sector.
- Union Budget Allocation: A significant allocation of ₹20,000 crore is designated for piloting CCUS across five key sectors, including steel.
Significance
- CCUS technology aids in decarbonising existing steel plants without necessitating immediate asset replacement.
- It enhances global competitiveness for India's steel industry, especially in light of evolving carbon border measures.
- CCUS supports India's Net Zero 2070 target.
- This initiative fosters the development of industrial ecosystems focused on carbon transport and storage.
In 2023, consider the following heavy industries:
- Fertilizer plants
- Oil refineries
- Steel plants
Green hydrogen is anticipated to significantly contribute to the decarbonization of how many of the above industries?
- (a) Only one
- (b) Only two
- (c) All three
- (d) None
This information underscores the critical role of innovative technologies like CCUS and green hydrogen in transforming India's industrial landscape towards sustainability.
GS2/Polity
Have States Gained from the 16th Finance Commission?
Why in News?
The 16th Finance Commission (FC), chaired by Dr. Arvind Panagariya, submitted its report for the period of 2026-31, reigniting discussions on fiscal federalism. The previous commissions had seen fluctuations in vertical devolution: the 14th FC raised it to 42%, while the 15th FC reduced it to 41% due to the bifurcation of Jammu and Kashmir into two Union Territories. Industrialized states are advocating for a vertical share increase to 50%, while others seek a restoration to 45-48%. This situation arises amid concerns over a shrinking divisible pool, which has diminished largely because of rising cesses and surcharges, which accounted for about 19% of gross tax revenue in 2015-16, leaving only 81% available for distribution.
Key Takeaways
- The 16th FC's recommendations were accepted by the Union Government and presented in Parliament on February 1, 2026.
- Vertical devolution has seen varied percentages over the years, reflecting changing political and financial scenarios.
Additional Details
- Constitutional Framework: Article 270 provides for the distribution of net tax proceeds between the Centre and the States, while Article 280 mandates the formation of Finance Commissions to recommend devolution formulas.
- Divisible Pool: The divisible pool includes corporation tax, personal income tax, Central Goods and Services Tax (CGST), and the Centre's share of Integrated GST, excluding cesses and surcharges.
- Vertical Devolution Trends:
- 13th FC (2010-15): 32% share to states.
- 14th FC (2015-20): Increased share to 42%.
- 15th FC (2020-26): Reduced share to 41% due to Jammu and Kashmir's reorganization.
- 16th FC (2026-31): Maintained 41% vertical devolution.
The 16th Finance Commission's recommendations reflect a balance between maintaining existing devolution rates and addressing the needs for growth and equity among states. The ongoing discussions highlight the complexity of fiscal federalism in India, where the demands of various states shape the future of financial governance.
GS1/Geography
Almatti Dam
Why in News?
The Chief Minister of Andhra Pradesh has raised concerns regarding Karnataka's decision to raise the height of the Almatti Dam located on the Upper Krishna River.
Key Takeaways
- Almatti Dam serves multiple purposes including irrigation, hydroelectric power generation, and flood control.
- It is located in the Nidgundi area of the Vijayapura (Bijapur) district in North Karnataka.
Additional Details
- Location: Almatti Dam is situated on the border of Vijayapura and Bagalkote districts, built across the Krishna River, which is the second-largest east-flowing river in peninsular India.
- Height and Structure: The dam stands at a height of 52.5 meters and extends 3.5 kilometers in length. It was completed in July 2005.
- Hydroelectric Power: The dam has an annual electric output of 713 million kilowatts and features a 290 MW hydroelectric power station utilizing vertical Kaplan turbines.
- Water Capacity: It holds a gross water storage capacity of 123.08 TMC at 519 meters Mean Sea Level (MSL).
- Project Significance: Almatti Dam serves as the primary reservoir for the Upper Krishna Irrigation Project, which aims to provide irrigation and drinking water to drought-prone districts like Kalaburagi, Yadgir, Raichur, and Bagalkot.
- Environmental and Recreational Aspects: The area features seven terrace gardens, including a picnic spot named "Rock Hill" that has an artificial forest with ceramic representations of wildlife and rural life in India.
This dam plays a crucial role in the region's irrigation and power generation, while also serving as a recreational area for visitors, highlighting its multifaceted importance to both the local ecology and community.
GS2/Polity
Judicial Drift in the Special Intensive Revision Hearings
Why in News?
The ongoing debate surrounding the Special Intensive Revision (SIR) of electoral rolls raises significant constitutional questions about democracy, voting rights, and institutional accountability. The Supreme Court's decision to allow the SIR to continue, while issuing operational directions, may risk legitimizing a potentially unlawful process.
Key Takeaways
- The Supreme Court's approach could transform judicial review into retrospective validation.
- Judicial roles are being blurred with administrative oversight, which undermines the judiciary's function as a guardian of rights.
- The SIR process risks disenfranchisement and raises concerns about the presumption of citizenship.
- Documentation requirements may disproportionately affect marginalized populations.
Additional Details
- Judicial Role vs Administrative Role: Courts exist to enforce constitutional norms, but the SIR's operational guidance indicates a shift towards administrative oversight, detracting from their essential function.
- Power of the Election Commission: The Representation of the People Act allows for targeted revision, but the SIR's broad verification mechanism may overstep statutory limits, raising separation of powers concerns.
- Presumption of Citizenship vs Presumption of Suspicion: The SIR alters the foundational democratic principle by requiring voters to prove their eligibility, shifting the burden of proof and creating potential barriers to voting.
- Implications of Large-Scale Verification: The risk of widespread exclusion from voter rolls represents a significant threat to democratic legitimacy and fundamental rights.
- Social Inequality and Documentation: Documentation requirements can exacerbate existing inequalities, disproportionately impacting vulnerable groups.
- Larger Democratic Concern: The transformation of governance priorities may overshadow individual dignity, with bureaucratic authority potentially leading to exclusionary practices.
The Special Intensive Revision process raises critical questions about citizenship, institutional responsibility, and the essence of democratic participation. Ensuring secure rights and meaningful participation is vital, and only definitive constitutional scrutiny can help strengthen democracy rather than restrict it.
GS3/Environment
Hollongapar Gibbon Wildlife Sanctuary
Why in News?
Recently, a male gibbon was tragically found electrocuted at the Hollongapar Gibbon Wildlife Sanctuary (HGWS) located in Jorhat, Assam, highlighting the ongoing threats to wildlife in this region.
Key Takeaways
- The sanctuary is the only one in India named after a gibbon.
- It was established on July 30, 1997, after upgrading from a reserve forest.
- It spans approximately 20.98 square kilometers.
Additional Details
- Location: The sanctuary is situated in the Jorhat district of Assam, India.
- Unique Features: It is notable for having the densest population of hoolock gibbons in Assam.
- Terrain: The area is at an altitude of 100 to 120 meters, with a gentle slope from southeast to northwest.
- The Bhogdoi River contributes to a waterlogged region filled with semi-hydrophytic plants around the sanctuary's borders.
- Isolation: The sanctuary is described as a "forest island," entirely encircled by tea gardens.
- Flora: The upper canopy is dominated by the Hollong tree, while the middle canopy features the Nahar tree. The lower layers include evergreen shrubs and herbs.
- Fauna: Home to India's only hoolock gibbons, it also hosts the Bengal slow loris, Indian elephants, tigers, leopards, and various other mammals.
The Hollongapar Gibbon Wildlife Sanctuary plays a crucial role in wildlife conservation, particularly for primate species, and highlights the need for enhanced protection mechanisms to prevent incidents like the recent electrocution.
GS3/Science and Technology
Wet Dress Rehearsal
Why in News?
NASA has recently detected a hydrogen leak during a wet dress rehearsal for its Artemis II mission, highlighting the importance of this preparatory process for upcoming rocket launches.
Key Takeaways
- A wet dress rehearsal is a crucial practice run for rocket launches.
- It involves loading cryogenic fuel into the rocket's tanks to identify potential issues.
- The rehearsal simulates launch conditions to ensure systems function correctly.
Additional Details
- Definition: A wet dress rehearsal is the final practice run before a high-stakes rocket launch.
- Nomenclature: The term "wet" refers to the loading of cryogenic fuel, such as liquid oxygen and liquid hydrogen, into the rocket.
- Objective: The primary aim is to identify potential issues that may arise under extreme cryogenic conditions, including seal leaks and material stress.
- Procedure: This rehearsal involves cooling fuel feed lines, loading tanks, pressurizing them, monitoring for leaks, and executing the countdown to the final stages.
- Significance: Wet rehearsals are essential for revealing issues that can only be detected under cryogenic conditions, such as leaks in seals or connections between the rocket and ground equipment.
In contrast, a dry dress rehearsal practices the countdown and essential operations without cryogenic propellants. This includes powering up vehicle systems, verifying communications, simulating critical events, and validating decision-making processes without the risks associated with fuel leaks. Both types of rehearsals ensure the preparedness and safety of the launch process.
GS3/Economy
Expansion of India's Taxpayer Base
Why in News?
India's direct tax system has witnessed a significant and sustained increase in the number of both individual and non-individual taxpayers. Over the past decade, the taxpayer base has more than doubled, with individual taxpayers rising from 3.26 crore in AY2013-14 to nearly 7.26 crore in AY2024-25. The overall taxpayer base has expanded to approximately 4.8 crore. Notably, the cost of collecting direct taxes has decreased to 0.41% in FY2024-25 (provisional), marking the lowest figure recorded in the available data. This growth is attributed to administrative reforms, the digitalization of filing systems, and strengthened compliance mechanisms.
Key Takeaways
- Individual taxpayers: Increased from 3.26 crore (AY2013-14) to nearly 7.26 crore (AY2024-25), more than doubling in a decade.
- Total taxpayer base: Expanded from about 2.9 crore in AY2013-14 to nearly 4.8 crore in AY2024-25.
- Growth rate: Registered a CAGR of approximately 5% over the period.
- Peak annual growth: 7.89% CAGR observed during the period.
- Pandemic impact: Growth slowed sharply in FY2020-21 due to COVID-19-related economic disruption.
- Recovery phase: Growth rebounded in subsequent years, indicating durability of expansion.
Additional Details
- Dominance of individuals: Individual taxpayers continue to be the majority within the tax system.
- Non-individual taxpayers: This category includes firms, companies, LLPs, Associations of Persons (AOPs), Bodies of Individuals (BOIs), local authorities, and artificial juridical persons.
- Steady growth in non-individuals: Growth has been more stable in this category compared to individuals, showing resilience against pandemic volatility.
- Broader base expansion: Evidence indicates increasing formalization across business entities, contributing to a larger taxpayer base.
The decline in the cost of tax collection-from 0.61% of gross direct tax collections in FY2000-01 to 0.41% in FY2024-25 (provisional)-highlights sustained administrative efficiency. The temporary spike during FY2020-21 due to pandemic disruptions has been corrected, demonstrating improved efficiency in revenue mobilization per rupee spent. This expansion of the taxpayer base, coupled with a declining cost of collection, suggests a structural strengthening of India's direct tax system, which is supported by digital governance successes and a deeper compliance culture.
FAQs on UPSC Daily Current Affairs: 2026-02-12
| 1. What is the Network Readiness Index and its significance? |  |
| 2. How does judicial intervention affect religious disputes in India? | |
| 3. What are the main objectives of the 16th Finance Commission? | |
| 4. What role do performance scorecards play in civil services reforms? | |
| 5. How does carbon capture technology contribute to India's green steel transition? | |
