UPSC Current Affairs 7th August 2026

1. National Handloom Day 2026 (GS Paper 2 & 3)

Context: The 12th National Handloom Day was observed on August 7, 2026. Instituted in 2015, the date commemorates the launch of the Swadeshi Movement in 1905.

Key Statistics (Fourth All India Handloom Census 2019–20):

• Workforce: 35.22 lakh weavers and allied workers.
• Women-Led: Women constitute over 72% of the workforce (~25.46 lakh).
• Social Inclusion: Workforce includes massive participation from marginalized communities (12.67 lakh OBC, 6.28 lakh ST, 4.84 lakh SC).
• Rural Concentration: 9 out of 10 handlooms are in rural areas.

Major Government Interventions:

• National Handloom Development Programme (NHDP, 2021–26): Provides up to ₹2 crore per small cluster. Electronic Jacquard subsidies under this scheme have improved daily productivity by 55% and wages by 56%.
• Raw Material Supply Scheme (RMSS): Reimburses freight charges and offers a 15% price subsidy on specified yarns.
• Weaver MUDRA Scheme: Provides concessional credit at 6% interest for three years with up to 7% government interest subvention.
• Budget 2026–27 Measures: GST on 36 handicraft/handloom items reduced from 12% to 5%.
• Certifications & IP: Handloom Mark (authenticity), India Handloom Brand (premium quality), and Geographical Indication (GI) tags (currently covering 106 handloom products under the GI Act, 1999) protect the weavers.
• Legal Protection: The Handlooms (Reservation of Articles for Production) Act, 1985 reserves 11 textile articles exclusively for handlooms.

2. Rise of India’s Electric Vehicles Ecosystem (GS Paper 2 & 3)

Context: India’s EV penetration has surged from 0.08% in FY16 to 8.26% in FY26, with an aim to achieve 30% EV sales by 2030, aligning with the 2070 net-zero emission target.

Policy Framework & Schemes:

• PM E-DRIVE Scheme (2024): Outlay of ₹10,900 crore to promote EV adoption, charging infrastructure, and domestic manufacturing via a Phased Manufacturing Programme.
• PLI-ACC Scheme: ₹18,100 crore outlay to establish 50 GWh of domestic Advanced Chemistry Cell (ACC) battery capacity to lower vehicle costs and import dependence.
• PLI-Auto Scheme: Promotes domestic manufacturing of Advanced Automotive Technology products with a minimum 50% domestic value addition requirement.
• PM e-Bus Sewa-PSM Scheme: Provides a payment security mechanism to e-bus operators in case of defaults by Public Transport Authorities (PPP model).
• SPMEPCI (2024): Scheme for Promotion of Manufacturing of Electric Passenger Cars requires manufacturers to invest at least ₹4,150 crore and hit domestic value addition targets.
• India Electric Mobility Index (NITI Aayog, 2025): Evaluates State/UT progress. Delhi, Maharashtra, and Chandigarh are categorized as “Frontrunners”.
• CAFE Norms: Corporate Average Fuel Efficiency (CAFE) norms (III for 2027-32; IV for 2033-37) mandate stricter CO2 emission limits, using super-credits to incentivize EV production.

3. Lab-Grown Diamonds (LGDs) (GS Paper 1 & 3)

Context: With natural diamond mines depleting and raising ethical/environmental concerns, Lab-Grown Diamonds (LGDs) are gaining global attention as a sustainable alternative.

Key Features of LGDs:

• Chemically, physically, and optically identical to natural diamonds.
• Manufactured using two primary technologies: HPHT (High Pressure, High Temperature) and CVD (Chemical Vapour Deposition).
• Applications extend beyond jewelry into industrial cutting, semiconductors, and quantum computing.

India’s Position & Initiatives:

• India processes ~90% of the world’s diamonds and currently manufactures over 15% of global LGD production.
• InCent-LGD: A ₹243 crore grant awarded to IIT Madras to establish the India Centre for Lab-Grown Diamond to develop indigenous machinery and diamond seeds.
• India holds the Chair of the Kimberley Process (KP) for 2026, leading global efforts to curb the trade of “blood diamonds.”

Note on Natural Diamonds in India: The Majhgawan mine in Panna (MP), operated by NMDC, is India’s only active mechanized commercial diamond mine.

4. RBI to Resume Licensing of Urban Cooperative Banks (GS Paper 3)

Context: The RBI will resume ‘on-tap’ licensing for Urban Cooperative Banks (UCBs) following a two-decade pause that began in 2004 due to governance and instability issues.

Draft Guidelines Highlights:

• Eligibility: Credit cooperative societies with a 10-year active operational track record.
• Capital Base: Minimum deposit base of ₹10,000 crore and a net worth of ₹300 crore.
• Financial Health: Must maintain a CRAR of at least 12% and net NPAs of no more than 3%.
• Preference: Entities registered under the Multi-State Co-operative Societies Act, 2002 to ensure geographical risk diversification.

Four-Tier Regulatory Structure (Introduced in 2022):

5. Supreme Court Judges’ Strength Increase via Money Bill (GS Paper 2)

Context: Parliament passed the Supreme Court (Number of Judges) Amendment Bill, 2026, expanding the sanctioned strength of the SC from 34 to 38 judges (including the CJI).

UPSC Relevance (Polity/Constitution):

• Legislative Route: The amendment was controversially passed as a Money Bill (Article 110) because it involves expenditures from the Consolidated Fund of India (salaries, staff, infrastructure).
• Criticism: Passing laws as Money Bills bypasses the Rajya Sabha, which can only make recommendations, not reject or amend the legislation.
• The broader scope of the Lok Sabha Speaker’s power to certify a Money Bill is currently pending before a seven-judge Constitution Bench.

6. Neutrinos as a Tool for Nuclear Safeguards (GS Paper 3)

Context: The Double Chooz Collaboration (France) has successfully measured the precise energy signature of antineutrinos emitted by spent nuclear fuel.

Scientific & Strategic Significance:

• Neutrinos: Extremely light, electrically neutral subatomic particles that pass through matter without detection.
• Mechanism: Nuclear fission produces large quantities of antineutrinos. Radioactive isotopes continue to emit an antineutrino flux even when a reactor is shut down or fuel is moved to cooling pools.
• Nuclear Safeguards: This enables inspectors to remotely verify spent-fuel inventories and estimate plutonium content in real time. Any clandestine removal of fuel for weapons-grade plutonium can be detected via a drop in the residual neutrino signal.
• Limitation: Detectors currently require massive scale (e.g., 500 tonnes) for shielding against cosmic-ray interference.