UPSC Current Affairs — Wednesday, 26 August 2026

3 UPSC-relevant topics from Indian Express · With MCQs, Mains questions & concept explanations

EconomyGovernanceScience & TechnologySecuritySocial Issues

Indian ExpressSecurityScience & TechnologyGovernanceRelevance 8/10

Rajnath approves transfer of missile technology to domestic defence industry

Directly relevant to UPSC Mains GS-3 (Defence and Security). Covers government policy on defence manufacturing, technology transfer, and strategic autonomy in missile production.

UPSC Relevance

Maps to GS Paper 3 (Defence & Security) and GS Paper 2 (Government Policies & Interventions). Relevant for topics on indigenisation of defence production, Make in India, and technology transfer.

What You Need to Know

Technology transfer (ToT) in defence involves sharing design, manufacturing know-how, and production processes of missile systems with domestic firms. This decision enables Indian companies to produce advanced missiles locally, reducing import dependency.

Why It Matters for UPSC

It strengthens India's strategic autonomy, boosts the domestic defence industrial base, and aligns with the 'Make in India' and 'Atmanirbhar Bharat' initiatives. For the exam, it links to defence modernisation, self-reliance, and economic growth.

Background

India has historically imported major defence systems, but recent reforms like the Defence Acquisition Procedure (DAP) 2020 and positive indigenisation lists have pushed for local manufacturing. The decision follows a trend of transferring technology for platforms like BrahMos and Akash missiles.

Current Relevance

The approval is part of India's push for defence self-reliance, with a target of ₹1.75 lakh crore defence production by 2024-25. It will enable private firms to enter missile manufacturing, boosting exports and reducing import bills.

Key Points for Revision

•Defence Minister approved transfer of missile technology to domestic industry, boosting indigenous production.
•Aims to reduce import dependence and strengthen 'Make in India' in defence sector.
•Specific missile platforms identified; implementation to begin in coming months.
•Expected to accelerate growth of defence sector and build robust domestic industrial base.
•Aligns with Atmanirbhar Bharat and Defence Acquisition Procedure (DAP) 2020 reforms.

Prelims Practice MCQs

Q1. Consider the following statements about technology transfer in defence: 1. It enables domestic firms to produce imported systems locally. 2. It is a key component of 'Make in India' in defence. Which of the statements is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Technology transfer allows domestic firms to manufacture systems designed elsewhere, reducing imports. It is a pillar of 'Make in India' in defence, promoting self-reliance.

Q2. Which of the following is an indigenous missile system developed by India?

(a) Tomahawk

(b) BrahMos

(d) Aster

BrahMos is a supersonic cruise missile jointly developed by India and Russia, with significant indigenous content. Others are foreign systems.

Q3. The 'Positive Indigenisation List' (PIL) in defence aims to:

(a) Ban imports of all defence items

(b) List items to be indigenised within a timeframe

(d) Encourage foreign investment in defence

PIL lists defence items that will be indigenised with a ban on imports after a set deadline, promoting domestic manufacturing.

Mains Practice Questions

Discuss the significance of technology transfer in boosting India's defence manufacturing capabilities. How does it align with the 'Make in India' initiative? (150 words)
Discuss
Examine the challenges India faces in indigenising defence production despite technology transfer initiatives. Suggest measures to overcome them. (250 words)
Examine

Indian ExpressEconomyGovernanceRelevance 8/10

Indian economy resilient amid global uncertainties: RBI paper

Directly relevant to UPSC Mains GS-III (Economy). Covers RBI's assessment of Indian economy, inflation, monetary policy, and growth forecasts - key topics for economics and public finance.

UPSC Relevance

Maps to GS Paper III (Indian Economy) — topics on economic growth, inflation, monetary policy, and external sector. Relevant for questions on RBI's role, economic resilience, and policy challenges.

What You Need to Know

The RBI's monthly 'State of the Economy' article assesses current economic conditions. It highlights India's resilience with projected FY2026-27 growth of 6.5-7% and moderated inflation, despite global slowdown.

Why It Matters for UPSC

It signals policy direction and confidence to investors. For UPSC, it tests understanding of macroeconomic indicators, RBI's role, and India's position in a volatile global economy.

Background

The article is part of RBI's regular communication. It comes amid global trade protectionism, geopolitical tensions, and post-pandemic recovery. India has maintained growth through domestic demand and reforms.

Current Relevance

Recent RBI projections indicate growth resilience, but global uncertainties pose risks. This is relevant for policy debates on rate cuts, fiscal consolidation, and structural reforms.

Key Points for Revision

•RBI projects FY2026-27 growth at 6.5-7%, showing resilience despite global slowdown.
•Inflation has moderated and is expected to stay within the 4% +/-2% target band.
•Consumer spending supported by improved monsoon and rural demand.
•Manufacturing sector recovering with pick-up in industrial production.
•RBI emphasizes fiscal prudence and structural reforms for sustained growth.

Prelims Practice MCQs

Q1. Consider the following statements regarding the RBI's State of the Economy article: 1. It projects FY2026-27 growth at 6.5-7%. 2. Inflation is expected to remain above the target band. Which is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

The article projects growth at 6.5-7% for FY2026-27. Inflation is expected to remain within the target band, not above, making statement 2 incorrect.

Q2. Which of the following factors has supported consumer spending in the Indian economy, as per the RBI article?

(a) Improved monsoon and rural demand

(b) Higher global trade

(d) Appreciation of rupee

Improved monsoon conditions and rural demand have supported consumer spending, as per the article.

Q3. The RBI's Monetary Policy Committee is responsible for:

(a) Setting the repo rate to control inflation

(b) Managing fiscal deficit

(d) Regulating stock markets

The MPC sets the repo rate to achieve inflation targets, as per the Flexible Inflation Targeting framework.

Mains Practice Questions

Discuss the factors contributing to the resilience of the Indian economy amidst global uncertainties, and suggest measures to sustain this growth momentum. (250 words)
Discuss
Examine the role of the Reserve Bank of India in maintaining economic stability in the face of global uncertainties. (150 words)
Examine

Indian ExpressSocial IssuesGovernanceEconomyRelevance 7/10

NITI Aayog: Degrees like BA, B.Sc, B.Com have 'weak job linkages', need reforms

Relevant to UPSC Mains GS-2 (Social Issues) and GS-3 (Education Policy). Addresses education reform, employability crisis, and government initiatives through NITI Aayog.

UPSC Relevance

Maps to GS Paper II (Governance) and GS Paper III (Economy) – specifically education policy, skill development, and employment. Relevant for topics on human resource development and inclusive growth.

What You Need to Know

NITI Aayog's report highlights that traditional degree programmes (BA, B.Sc, B.Com) have weak job linkages, with over 90% of graduates employed in roles mismatched to their qualifications. It also notes a 20.8% graduate unemployment rate, higher than the national average.

Why It Matters for UPSC

This issue directly impacts India's demographic dividend and economic growth. For the exam, it connects to policy debates on education reform, employability, and the need for skill development to meet industry demands.

Background

India's higher education system has historically focused on theoretical knowledge, leading to a skill gap. NITI Aayog, as a policy think tank, has been advocating for reforms in education and skill development, aligning with initiatives like Skill India and the National Education Policy 2020.

Current Relevance

The report comes amid rising concerns over graduate unemployment and underemployment in India. It underscores the urgency of implementing NEP 2020's flexible, skill-oriented approach and boosting industry partnerships to bridge the skill gap.

Key Points for Revision

•Over 90% of graduates are employed in roles not matching their qualifications.
•Graduate unemployment rate is 20.8%, higher than the national average.
•52% of formal sector workers lack relevant qualifications for their jobs.
•NITI Aayog recommends skill-based education and industry-academia collaboration.
•Traditional degrees (BA, B.Sc, B.Com) have weak job linkages, needing curriculum reforms.

Prelims Practice MCQs

Q1. According to NITI Aayog's report, what percentage of graduates are unemployed?

(a) 20.8%

(b) 52%

(d) 10%

The NITI Aayog report states that 20.8% of graduates are unemployed, which is significantly higher than the national average. This highlights the weak job linkages in traditional degree programmes.

Q2. Which of the following is a key recommendation of NITI Aayog to improve employability?

(a) Increase number of traditional degree courses

(b) Skill-based education and industry-academia collaboration

(d) Focus only on theoretical knowledge

NITI Aayog recommends skill-based education and industry-academia collaboration to bridge the skill gap. This aligns with NEP 2020's emphasis on practical skills and vocational training.

Q3. What percentage of formal sector workers lack relevant qualifications for their jobs?

(a) 20.8%

(b) 52%

(d) 75%

The report notes that 52% of formal sector workers lack relevant qualifications for their jobs. This indicates a significant skill mismatch in the formal economy, necessitating reforms.

Mains Practice Questions

Discuss the challenges of weak job linkages in traditional degree programmes and suggest reforms to improve employability of graduates in India. (250 words)
Discuss
Examine the role of NITI Aayog in shaping India's education and skill development policies. How can its recommendations address the employability crisis? (250 words)
Examine

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