UPSC Daily Current Affairs: 2026-02-15

Table of Contents
1. India-US-Bangladesh Textile Trade Dynamics
2. AI Content Labelling Norms: Government's Latest Framework
3. India's Power Sector - Transitioning From Coal Backbone to Renewable Dominance For Net Zero
4. ₹1 Lakh Crore Urban Challenge Fund Cleared: What It Means for Cities
5. India believed that Panchsheel Pact settled Border with China: CDS
6. Reframing India's Foreign Policy in a Fragmented Global Order
7. Renewables to Lead India's Power Mix by 2070
8. Kerala Declares Bacillus Subtilis 'State Microbe'
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GS2/International Relations

India-US-Bangladesh Textile Trade Dynamics

Why in News?

The recent reciprocal trade agreement between the U.S. and Bangladesh, which provides zero reciprocal tariffs on specific apparel products, has raised alarms among Indian textile exporters regarding their competitive position.

Key Takeaways

• The U.S.-Bangladesh deal allows certain textile goods from Bangladesh to enter the U.S. without tariffs, contingent upon specific conditions.
• India, as a significant exporter of textiles, faces increased competition due to the narrowing tariff gap with Bangladesh.
• The reliance of Bangladesh on Indian cotton for its textile industry poses challenges for Indian exporters.

Additional Details

• U.S.-Bangladesh Textile Deal: The U.S. has agreed to implement a zero reciprocal tariff rate on certain textile and apparel goods from Bangladesh. This benefit is conditional on the volume of imports being linked to U.S.-produced cotton and man-made fiber (MMF) inputs.
• Bangladesh's Textile Industry: In 2024, Bangladesh's garment exports amounted to $50.9 billion, out of which $7.4 billion was directed to the U.S. The industry relies heavily on imported textile inputs, with $16.1 billion worth of imports, including $3.1 billion from India.
• India's Exposure: India exports around $16 billion worth of garments, with nearly one-third targeting the U.S. Indian goods currently face an 18% reciprocal tariff, while Bangladeshi goods will now face 19%, down from 20%.
• Trade Dynamics: Concerns arise that Bangladesh may opt for U.S. cotton instead of Indian cotton to qualify for tariff exemptions, potentially impacting Indian cotton and yarn exporters.
• Strategic Implications: The ongoing developments highlight the growing significance of rules-of-origin conditions in trade agreements and the need for India to align its domestic tariff policies with export competitiveness.

The evolution of the textile trade dynamics between India, the U.S., and Bangladesh underscores the intricate interplay of tariffs, supply chains, and international trade policies that could have far-reaching implications for the employment and economic stability of the textile sector in India.

GS2/Polity

AI Content Labelling Norms: Government's Latest Framework

Why in News?

The Ministry of Electronics and Information Technology (MeitY) has revised the Information Technology (IT) Rules, 2021, to require the labelling of AI-generated content by users and social media platforms. This amendment also reduces the timeline for content takedown from 24-36 hours to just 2-3 hours for all online content, effective from February 20.

Key Takeaways

• Mandatory labelling of AI-generated content.
• Shortened takedown timeline for unlawful content.
• Enhanced responsibilities for social media platforms.

Additional Details

• AI-Generated Content: The revised rules require social media platforms to clearly label content that is "synthetically generated" or AI-generated. Platforms with over five million users must obtain user declarations for AI-generated content and conduct technical verifications prior to publication.
• Prohibited Content: Certain types of AI-generated material are strictly banned, including child sexual exploitation content, forged documents, information on explosives, and deepfakes impersonating real individuals. This is intended to enhance safeguards against harmful AI use.
• Tighter Timelines: The amended rules enforce a 2-3 hour compliance window for government and court-ordered takedowns, significantly reducing the previous 24-36 hour timeline. User complaints related to defamation and misinformation must now be addressed within one week.
• User Notifications: Social media platforms must notify users of their terms and conditions every three months, explaining the consequences of non-compliance and obligations for reporting harmful content.
• Technical Measures: The government mandates that large platforms utilize reasonable technical measures to detect and prevent the distribution of unlawful synthetic content, while also emphasizing the need for proper labelling and provenance tracking.

In conclusion, these amendments aim to enhance accountability and transparency regarding AI-generated content, ensuring that users are informed and protected from potential misuse of technology.

GS3/Environment

India's Power Sector - Transitioning From Coal Backbone to Renewable Dominance For Net Zero

Why in News?

A recent study by NITI Aayog, titled "Scenarios Towards Viksit Bharat and Net Zero," outlines potential pathways for India's electricity transition leading up to 2070. Although coal is currently the predominant source of electricity generation in India, the report anticipates a significant long-term shift towards renewable energy (RE). This transition will be bolstered by nuclear energy expansion, advancements in storage technologies, and the potential decarbonization of coal through Carbon Capture, Utilisation, and Storage (CCUS).

Key Takeaways

• The study examines two scenarios: Current Policy Scenario (CPS) and Net Zero Scenario (NZS).
• Coal currently accounts for approximately 74% of electricity generation.
• Renewable energy capacity is projected to grow substantially by 2070.
• Significant storage expansion and nuclear power growth are essential for a stable energy transition.

Additional Details

• Present Electricity Landscape: Coal is responsible for around 74% of electricity generation, ensuring low-cost base-load power and reliability. As of December 2025, the installed capacity comprises 513 GW, with 50% from renewables.
• Structural Constraints in Renewable Energy: Major challenges include low capacity utilization factors (CUF) for solar and wind, intermittency issues, grid constraints, and a deficit in large-scale storage.
• Electricity Mix Projections: Under CPS, renewables' share in generation could rise to over 80% by 2070, while coal's share may decline significantly.
• Massive Storage Expansion Required: To support a renewables-heavy grid, storage capacity must increase dramatically, with Battery Energy Storage Systems (BESS) projected to grow from under 50 GW in 2030 to up to 3,000 GW by 2070.
• Nuclear Power as a Strategic Pillar: Nuclear capacity is projected to expand from 8.18 GW in 2025 to potentially 295-320 GW by 2070 under the NZS.
• Coal's Continuing Role: Despite the shift towards renewables, coal remains essential in the near term due to high storage costs and the challenges faced by renewables.
• Alternative Pathway Risks: Limited nuclear growth could lead to excessive reliance on solar, heightening grid stability risks and infrastructure challenges.
• Challenges and Way Forward: Solutions include scaling up storage technologies, modernizing grid infrastructure, and managing the transition of coal assets strategically.

In conclusion, India's transition to a sustainable electricity framework will not be a simple switch from coal to solar. Instead, it will require a balanced integration of renewables, storage solutions, nuclear energy, and robust grid reforms. While coal may continue to play a critical role in the short to medium term, the envisioned energy architecture by 2070 will likely be dominated by renewables, supported by comprehensive storage and nuclear power capabilities.

GS3/Economy

₹1 Lakh Crore Urban Challenge Fund Cleared: What It Means for Cities

Why in News?

The Union Cabinet has approved the launch of the Urban Challenge Fund (UCF), which will provide ₹1 lakh crore in central assistance aimed at driving urban development initiatives. This fund is anticipated to catalyze a total investment of ₹4 lakh crore in the urban sector over the next five years, significantly enhancing city infrastructure and development. The approval coincides with the Centre's clearance of projects worth approximately ₹1.6 trillion ($18 billion), focused on infrastructure, urban development, and startup ecosystems.

Key Takeaways

• The UCF aims to support urban development projects with a substantial budget allocation.
• It focuses on enhancing infrastructure and sustainability in cities across India.
• The fund will encourage private sector participation and market financing.

Additional Details

• Urban Challenge Fund (UCF): Initially announced in the Union Budget 2025-26 by Finance Minister Nirmala Sitharaman, the UCF has a proposed corpus of ₹1 lakh crore aimed at positioning cities as growth hubs and improving water and sanitation infrastructure.
• The UCF will operate from FY 2025-26 to FY 2030-31, with a potential extension up to FY 2033-34.
• The fund will cover cities with populations exceeding 1 lakh, with a special focus on Tier-II and Tier-III cities, as well as cities in the North Eastern and hilly regions.

The UCF seeks to create resilient, productive, inclusive, and climate-responsive cities, marking a shift from traditional grant-based funding to a market-linked, reform-driven, and outcome-oriented urban development model. By providing 25% of project costs as central assistance and requiring at least 50% of funding to be sourced from market avenues, the UCF promotes shared financial responsibility, ensuring a collaborative approach to urban development.

GS2/International Relations

India believed that Panchsheel Pact settled Border with China: CDS

Why in News?

• The Chief of Defence Staff (CDS) highlighted India's stance that the 1954 Panchsheel Agreement effectively resolved the northern boundary issue with China, despite differing interpretations by both countries.

Panchsheel Agreement

• In 1954, India acknowledged Tibet as part of China, leading to the signing of the Panchsheel Agreement between the two nations.
• The Panchsheel Agreement outlined five key principles:
• Mutual respect for territorial integrity and sovereignty.
• Mutual non-aggression.
• Mutual non-interference in internal affairs.
• Equality and cooperation for mutual benefit.
• Peaceful co-existence.
• The agreement aimed to foster trade and amicable relations, serving as the foundation for bilateral ties.
• India believed this agreement settled its northern border.
• In 2025, the Chinese President emphasised the importance of cherishing and promoting Panchsheel, coinciding with a reset in India-China relations and Prime Minister Modi's visit to China after seven years.

The India-China Borders

• India perceives the Line of Actual Control (LAC) as approximately 3,488 km long, while China estimates it to be around 2,000 km.
• The border is categorised into three sectors:
• Eastern Sector: Encompassing Arunachal Pradesh and Sikkim. Historically, the McMahon Line differentiated the territories of India and China in this sector. However, during the 1962 war, the People's Liberation Army (PLA) occupied an area of 9,000 sq. km. Although a unilateral ceasefire led to a withdrawal to the international borderline, China continues to claim this territory and has recently escalated its claims to the entire Arunachal Pradesh region.
• Middle Sector: Comprising parts of Uttarakhand and Himachal Pradesh. This section has seen fewer disputes, but recent incidents such as the Doklam standoff and issues related to the Nathu La Pass have introduced tensions.
• Western Sector: Also known as the Aksai Chin Sector. This area is claimed by China as part of its Xinjiang region following the 1962 war, though it was historically part of the Indian state of Jammu and Kashmir.

India-China Relations

2025 marks the 75 Years of India-China diplomatic ties.

• Historical Tensions: Relations have been strained since the 1962 Sino-Indian war, with increasing friction due to recent clashes and growing mistrust. The situation worsened significantly in 2020 following a violent clash between Indian and Chinese troops in the Galwan Valley. In response to these tensions, India took several measures against China, including restricting Chinese investments, banning Chinese mobile applications, and suspending flights to China.
• Trade Relations: Despite the ongoing tensions, trade between India and China reached a record high of $155.6 billion in 2025, showing a year-on-year growth of over 12 per cent. This indicates that economic ties between the two countries continue to grow, even amidst political and military disagreements.
• Ongoing Mechanisms: There are still active mechanisms in place to address the boundary issue, such as the Special Representatives (SR) and the Working Mechanism for Consultation and Coordination (WMCC). These mechanisms aim to facilitate dialogue and coordination between the two countries regarding the border dispute.
• Recent Developments: In 2024, India and China announced successful disengagement of troops in eastern Ladakh, marking a significant step towards de-escalation in the region. In October 2024, Indian Prime Minister Narendra Modi and Chinese President Xi Jinping met and emphasised the importance of "mutual trust, mutual respect, and mutual sensitivity" in their bilateral relations. In 2025, both nations resumed direct flights between them, and Prime Minister Modi also visited China for the Shanghai Cooperation Organisation (SCO) summit, further indicating a thaw in relations.

Areas of Concern

• Ongoing Border Tensions: The border dispute between India and China remains unresolved, stretching over 2,000 miles and marked by frequent clashes. These ongoing tensions continue to strain the relationship between the two countries.
• Military Standoff and Infrastructure Build-up: Both India and China have significantly increased their military presence along the Line of Actual Control (LAC). This includes large-scale troop deployments, rapid infrastructure construction, and overall militarisation of the region, which heightens the risk of escalation into conflict.
• China-Pakistan Nexus: The strategic cooperation between China and Pakistan is deepening, particularly through initiatives like the China-Pakistan Economic Corridor (CPEC). This corridor, part of China's Belt and Road Initiative, passes through territory that India claims as its own in Pakistan-occupied Kashmir. This growing partnership poses a strategic challenge to India.
• Trade Imbalance: India faces a significant trade deficit with China, heavily relying on Chinese imports in critical sectors such as electronics, active pharmaceutical ingredients (APIs), telecommunications equipment, and solar panels. This dependency raises concerns about economic vulnerability.
• China's Growing Presence in the Indian Ocean Region: China's increasing influence in the Indian Ocean Region through various means is a concern for India:
• Sri Lanka: China's presence at Hambantota Port and investments in local infrastructure, such as an oil refinery, are seen as strategic moves that enhance China's foothold in the region.
• Nepal: Chinese investments in infrastructure projects in Nepal, such as the Pokhara airport, challenge India's traditional influence and strategic position in its neighboring country.
• Bangladesh: China's growing influence in Bangladesh, including various loan agreements and infrastructure projects, threatens to undermine India's regional influence and strategic interests.
• Myanmar: China's deepening ties with Myanmar, exemplified by the China-Myanmar Economic Corridor, strengthen China's presence in a region that India considers part of its strategic backyard. This increasing Chinese influence in Myanmar poses a challenge to India's regional security and influence.

India's Efforts to Address these concerns

• Strengthening Military Preparedness: India has enhanced its military readiness along the Line of Actual Control (LAC) by deploying more troops, improving infrastructure, and introducing advanced weapon systems. Surveillance capabilities in border areas such as Ladakh and Arunachal Pradesh have also been upgraded to ensure better monitoring and security.
• Strategic Partnerships in the Indo-Pacific: India is actively participating in the Quadrilateral Security Dialogue (Quad) and strengthening defence cooperation with countries like the United States, Japan, Australia, and France. These partnerships aim to enhance collective security and address shared challenges in the Indo-Pacific region.
• Technology and Cyber Security Safeguards: India is promoting trusted and indigenous digital ecosystems by excluding high-risk vendors from its telecom infrastructure. This move aims to enhance cyber security and build resilience in critical technology sectors.
• Maritime Security: India has prioritised maritime security by expanding its naval capabilities and strengthening defence ties with countries like the United States and Japan. This focus on maritime security aims to safeguard India's interests in the Indian Ocean and beyond.
• Joining Infrastructure Projects: India has joined global infrastructure projects such as the Global Infrastructure Facility and the India-Middle East-Europe Economic Corridor. These initiatives aim to enhance India's economic presence and expand its influence through strategic infrastructure development.
• Trade Relations: India is working to reduce its reliance on Chinese goods, particularly in sectors like electronics and renewable energy. This effort aims to diversify supply chains and enhance domestic production capabilities.

Way Ahead

• Constant Surveillance: India needs to maintain continuous monitoring of border areas and the Indian Ocean Region. This includes being vigilant about geopolitical developments and technological advancements that could impact national security.
• Calibrated Diplomacy: The future approach should combine firmness on sovereignty and territorial integrity with measured diplomacy. This involves engaging with other countries while safeguarding India's core interests.
• Strategic Autonomy: Maintaining strategic autonomy will be crucial. This means making independent decisions that align with India's national interests, without being overly influenced by external pressures.

GS2/International Relations

Reframing India's Foreign Policy in a Fragmented Global Order

Why in News?

Erosion of Multilateralism

Decline of Consensus-Based Institutions

•  Institutions like the United Nations and the World Trade Organization (WTO) have historically played a crucial role in global rule-making through collective decision-making and diplomacy. 
•  However, their effectiveness has diminished as major powers increasingly bypass consensus mechanisms, weakening the rule-based order. 

Rise of Transactional Power Politics

•  Multilateral platforms are being replaced by transactional diplomacy, where power and bilateral leverage take precedence over collective norms. 
•  For example, the United States has resorted to unilateral tariffs and withdrawn from collaborative frameworks, reflecting this shift. 

Rise of Competitive Geoeconomics

• China has become the largest trading partner for over 120 countries, diversifying supply chains and markets. 
•  In response, the United States has prioritized technological containment and supply chain restructuring. 
•  This evolving landscape has increased vulnerability for middle powers like India due to shifting economic alignments. 

Evolution of Strategic Autonomy

Cold War Origins

•  Strategic autonomy originated during India's leadership in the Non-Aligned Movement, allowing the country to navigate Cold War bloc politics. 

Post-Cold War Transition

•  After 1991, strategic autonomy became more declaratory than structural. India's participation in the Quadrilateral Security Dialogue in 2017 marked a shift towards alignment with Indo-Pacific security concerns. 
•  India's procurement of the S-400 missile system from Russia, despite U.S. sanctions, exemplifies this strategic flexibility. 

Swing State Narrative

•  U.S. analysts now increasingly view India as a "swing state " in the context of U.S.-China rivalry, highlighting its pivotal role in global geopolitics. 

Current Policy of India

 India's foreign policy is characterized by: 

• Multi-Alignment : Balancing relationships with multiple powers. 
• Economic Diplomacy : Focusing on economic growth and partnerships. 
• Strategic Flexibility : Adapting to changing geopolitical dynamics. 

 Key Objectives: 

• Defence and Technology Cooperation : Strengthening ties with the United States and Indo-Pacific partners for security and technological advancements. 
• Defence and Energy Ties with Russia : Maintaining strong relations with Russia for defence and energy needs. 
• Engagement with China : Managing competition with China through a mix of dialogue and deterrence strategies. 
• Neighbourhood First Policy : Fostering closer ties and regional connectivity with neighbouring countries in South Asia. 
• Global Institutional Reform : Advocating for reforms in global institutions to reflect current power dynamics and enhance their effectiveness. 

 Overall, India's approach aims to preserve its autonomy while expanding partnerships that contribute to economic growth and technological progress. 

Way Ahead

Flexible Multilateral Engagement:

•  In a fragmented global order, India can preserve its strategic space by engaging in flexible coalitions and issue-based alignments. 
•  Platforms like BRICS offer opportunities to promote economic cooperation and advocate for reforms in global financial governance. 

Diversified Trade Strategy:

•  To reduce overdependence on any single market, India should deepen trade engagements with ASEAN, Africa, and West Asia. 
•  Expanding comprehensive economic partnerships and integrating into global value chains will enhance resilience against tariff volatility and economic shocks. 

GS3/Indian Economy

Renewables to Lead India's Power Mix by 2070

Why in News? 

•  A recent report by NITI Aayog, titled "Scenarios Towards Viksit Bharat and Net Zero," predicts a significant transformation in India's electricity mix by 2070, shifting from a coal-dominated system to one led by renewable energy sources. 

 Present Electricity Landscape of India 

• Coal's Dominance : Coal currently accounts for nearly 74% of India's electricity generation, providing a reliable and cost-effective base-load supply. 
• Global Standing in Renewable Energy : India ranks 3rd globally in solar power capacity, 4th in wind power capacity, and 4th in total renewable energy capacity (IRENA RE Statistics 2025). 
• Installed Capacity Breakdown : India's total installed capacity is 513 GW, with 48% from fossil fuels, 50% from renewable sources, and 1.7% from nuclear energy. 
• Renewable Energy Generation : Despite significant installed capacity, the share of renewable energy in actual generation increased only from 19.6% in 2013-14 to 22% in 2024-25, indicating challenges in utilization. 

 Projections Under Current Policy Scenario (CPS) 

• Renewable Energy Growth : The share of renewable energy in electricity generation is projected to increase from approximately 20% in 2024-25 to over 80% by 2070. 
• Decline of Coal : Coal's share in electricity generation is expected to decline sharply to between 6% and 10% by 2070. 

 Constraints in Renewable Energy Generation 

• Low Capacity Utilization Factor (CUF): Clean energy sources like solar and wind are intermittent and weather-dependent, leading to a much lower actual output compared to their capacity. For instance: 
  •  Solar CUF: ~20%
  •  Wind CUF: ~25-30%
  •  Coal CUF: ~60%
  •  Nuclear CUF: ~80%
• Base Load Dependency on Coal : Coal continues to meet over 75% of India's electricity demand, particularly at night when solar energy is not available. The grid relies heavily on thermal sources for round-the-clock (RTC) power. 
• Storage and Transmission Limitations : The lack of grid-scale battery storage prevents the storage of excess daytime solar energy. Additionally, transmission planning is not keeping pace with the rapid installation of renewable energy. 
• Time-Insensitive Tariff Structures : The absence of time-of-day (ToD) pricing discourages the consumption of daytime solar energy. Uniform tariffs do not incentivize consumers or distribution companies (discoms) to shift loads to peak solar hours. 
• Land and Regulatory Constraints : There are challenges in aggregating land for large-scale solar or hybrid projects. Delays in regulatory clearances, particularly for hybrid renewable systems and storage infrastructure, further hinder progress. 

 Government Initiatives to Improve Clean Energy Utilization 

• Green Energy Corridor (GEC) : This initiative aims to enhance transmission infrastructure, facilitating the efficient evacuation of renewable energy from generation sites to demand centres. 
• PM-KUSUM Scheme : The scheme promotes the installation of solar pumps and grid-connected solar power plants in rural areas, reducing diesel usage and supporting farmers. 
• National Green Hydrogen Mission : This mission seeks to encourage the production and use of green hydrogen, aiming to reduce reliance on fossil fuels in sectors such as refining, steel, and fertilizers. 
• Production Linked Incentive (PLI) Scheme : The PLI scheme offers financial incentives for the domestic manufacturing of high-efficiency solar photovoltaic (PV) modules and advanced battery storage systems. 
• Renewable Energy Hybrid Policy : This policy encourages the establishment of projects that combine solar and wind energy in the same location, enhancing capacity utilization and reliability. 

 Way Ahead 

• Grid Modernisation and Smart Management : Invest in smart grids capable of real-time demand-supply balancing. Implement time-of-day pricing to encourage daytime solar usage. 
• Battery and Storage Infrastructure : Accelerate the deployment of Battery Energy Storage Systems (BESS) through Viability Gap Funding (VGF) or the PLI scheme. Fast-track hybrid projects combining solar, wind, hydro, and battery storage. 
• Decentralised Renewable Energy : Promote rooftop solar installations, solar pumps, and mini-grids to alleviate pressure on base-load power. 
• Revamp Tariff and Market Design : Introduce differential tariffs for peak and off-peak periods. Establish green power markets on energy exchanges with open access for industries. 
• Nuclear Power as a Strategic Pillar : Scale up nuclear capacity in a phased and financially sustainable manner to provide firm, low-carbon base-load power. Prioritize the development of advanced reactors and Small Modular Reactors (SMRs) for flexible deployment and enhanced safety. 

GS2/Governance

Kerala Declares Bacillus Subtilis 'State Microbe'

Why is it News?

Kerala has made history by becoming the first state in India to officially recognize a "State Microbe." The chosen microbe is Bacillus subtilis, a beneficial bacterium that lives in the soil.

About Bacillus subtilis

• Bacillus subtilis is a rod-shaped, gram-positive bacterium that is harmless and commonly found in soil, water, and the human gut.
• It is considered a probiotic, meaning it is a good bacterium that helps improve gut health and boost immunity.
• This bacterium is widely used in agriculture as a biofertilizer and biocontrol agent. It helps enhance crop productivity and suppress plant diseases.
• Due to its resilience and ability to form spores, Bacillus subtilis also has significant industrial and biotechnological applications.

Centre of Excellence in Microbiome

The Centre of Excellence in Microbiome (CoEM) was established by the Government of Kerala under the Kerala State Council for Science, Technology, and Environment.

• Located in Thiruvananthapuram, CoEM is India's first dedicated multi-domain research institution focused on microbiome studies.