Daily Current Affairs 08 June 2026 – IAS Current Affairs

Current Affairs 08 June 2026 focuses on the Prelims-Mains perspective. Major events are :

India-Indonesia Relations

Source: Indian Express
GS II: Bilateral, Regional and Global  Groupings and Agreements involving India and/or affecting India’s interest.

Overview

1. News in Brief
2. Key Highlights

Why in the News?

Recently, the 8th India-Indonesia Joint Commission Meeting held in New Delhi.

News in Brief

• External Affairs Minister Dr.S. Jaishankar and Indonesia counterpart Sugiono held bilatral talks.
• Reaffirmed their commitment to strengthen their Comprehensive Strategic Partnership.
• Agreed to deepen cooperation in defence, maritime security, infrastructure, digital connectivity and trade.

Key Highlights

• Defence and Security Cooperation
  • • • Expansion of military-to-military engagement and joint exercises.
      • Enhance defence- industrial cooperation.
      • Focus on maintaining peace and stability in the Indo-Pacific region.
      • Greater cooperation in counter-terrorism and regional security.
• Maritime Security
  • • • Joint efforts to secure critical sea lanes and shipping routes.
      • Cooperation in the strategically important Andaman and Nicobar Islands, and Malacca Strait region.
• Trade and Economic relations
  • • • Expansion of bilateral trade and investments.
      • Strengthening supply chain resilience.
      • Promotion of fintech and digital economy partnerships.
      • Collaboration in critical minerals and fertilizer sectors.
• Digital and Infrastructure Connectivity
  • • • Cooperation in digital public infrastructure and emerging technologies.
      • Encouraging innovation and technology partnerships.
      • Enhancing  connectivity between business and people.
      • Supporting infrastructure development projects.
• Health, Education, and Cultural Exchanges
  • • • Collaboration in healthcare and pharmaceutical sectors.
      • Expansion of educational partnerships.
      • Promotion of people-to-people ties.

Historical context – India and Indonesia Relations

• Shared anti-colonial legacy
  • • • Both countries fought against colonial rule and supported each other’s independence movements.
      • Independent India and Indonesia were among the foremost supporters of cooperation, independence, and solidarity among Asian and African nations.
• Bandung Conference (1955)
  • • • The first Afro-Asian Conference also known as the Bandung Conference, held to unite newly independent Asian and African nations to promote economic and cultural cooperation and also to oppose colonialism.
      • The Bandung Conference laid the foundation for NAM – Non-Aligned Movement.
• Non-Aligned Movement (NAM)
  • • • Non-Aligned Movement was formally established in 1961.
      • India and Indonesia played significant role in its evolution.

UPSC Prelims Practice Question

With reference to India-Indonesia relations, consider the following statements,

1. Indonesia is India’s largest trading partner in ASEAN.
2. The Malacca Strait is strategically important for India-Indonesia maritime cooperation.
3. Indonesia is a key pillar of India’s Act East Policy.

Which of the statements given above are correct?

a) 1 and 2 only

b) 2 and 3 only

c) 1 and 3 only

d) 1,2 and 3

Answer: b) 2 and 3 only

Explanation: Indonesia is important trading partner, but not the largest trading partner of India in ASEAN – largest is Singapore (annual trade – $34 billion).

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Foreign Participation In G-Secs

Source: PIB
GS III: Investment Models

Overview

1. News in Brief
2. Key Reforms Introduced
3. Significance of the reforms

Why in the News?

The Government of India has introduced a series of reforms to increase foreign participation in Government Securities (G-Secs).

News in Brief

• India has undertaken significant reforms to attract foreign investors to its Government Securities (G-Secs) market.
• To strengthen India’s bond market and integrating with global financial markets.
• This facilitates long-term capital inflows into the Indian economy.

Key Reforms Introduced

Tax incentives for Foreign Investors – FIIs/FPIs

• • • • Exemptions on interest income on specified G-Secs.
      • Relief on Long-Term Capital Gains (LTCG).
      • Relief on Short-Term Capital Gains (STCG).

Expansion of Fully Accessible Route (FAR)

• • • • More Government Securities have been brought under the Fully  Accessible Route, broadening investment opportunities for foreign investors across a wider range of G-Secs.
      • Eligible securities can be purchased by foreign investors without investment limits.

Streamlined Investment norms

• • • • Procedures related to registration, compliance, and investment operations have been streamlined.

Relaxation of Investment Limits

• • • • To facilitate greater participation of Foreign Portfolio Investor (FPI) participation in G-Secs, the Government has removed limits on short-term investment, concentration and security-wise investment.

Significance of the reforms

By broadening and diversifying investor base,

• Attract stable long-term capital
• Deepen the G-sec market
• Strengthen India’s debt market

Greater foreign participation,

• Provide an additional source of funding for infrastructure, urban development, manufacturing, climate initiatives, and other national priorities.
• Improve market liquidity and price discovery.
• Support the development of a smoother yield curve.
• Reduce government borrowing costs.
• Strengthen financial market benchmarks.
• Enhance the transmission of monetary policy across the economy.

Institutional Investors

• Attract institutional investors such as pension funds, insurance companies, and sovereign wealth funds, leading to more stable and sustained capital flows.
• Boost foreign exchange inflows and strengthen the resilience of India’s financial markets.

UPSC Prelims Practice Question

Consider the following statements regarding the Fully Accessible Route (FAR):

1. It allows foreign investors to invest in specified government securities without investment limits.
2. Introduced to deepen India’s bond market and attract foreign capital.
3. Only, domestic institutional investors can purchase eligible government securities.

Which of the statements given above is/are correct?

a) 1 and 2 only

b) 2 and 3 only

c)1 and 3 only

d) 1,2,and 3

Answer: a) 1 and 2 only

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Ease Of Doing Business

Source: PIB
GS III: Changes in Industrial Policy, Investment Models, Infrastructure

Overview

1. News in Brief
2. India’s progress in Ease of Doing Business
3. Key Reforms Transforming Business Environment

Why in the News?

Press Information Bureau has highlighted the major reforms undertaken over the past years to strengthen the Ease Of Doing Business.

News in Brief

• India has undertaken wide-ranging reforms that transformed India’s business environment.
• Through digital governance, regulatory simplification, and trust-based administration.
• These reforms have strengthened investor confidence, promoted entrepreneurship, and enhanced India’s position as a globally competitive business destination.

India’s Progress In Ease Of Doing Business

Global Assessments

• India’s rank in World Bank’s Doing Business Report improved from 142 (2014) to 63 (2019).
• India’s ranking in the IMD World Competitiveness Ranking improved from 43 (2021) to 41 (2025).
• India has consistently been placed in the top category of the World Bank’s GovTech Maturity Index.
• In the US E-Government Survey, India has secured overall high score the in the survey, recognizing its strong digital governance capabilities.

Key Reforms Transforming Business Environment

Advancing Business Entry 

• Startup India
  • • • • Over 2.23 lakh recognized startups by March 2026.
        • Generated more than 23.3 lakh direct jobs.
• SPICe+ and MCA21
  • • • • Integrated online company incorporation platform.
        • Streamlined the process of starting and formalizing businesses.
• Udyam Registration Portal
  • • • • Offers free, paperless, self-declaration based system for MSMEs registration.
        • Fully integrated with GST and income tax databases that eliminates administrative hurdles.

Simplifying Property Registration 

• Digital India Land Records Modernization Programme (DILRMP)
  • • • • Digitization of over 97% of cadastral maps.
        • eliminates duplicity, prevents benami transactions, facilitates unified land ecosystems, enhances transparency and reduces land disputes.
• National Generic Document Registration System (NGDRS)
  • • • • Enables online property registration and valuation services.
        • Supports seamless automatic mutation of land records immediately after registration.

Streamlining Permit Procedures 

• Introduction of Labour Code in 2025
  • • • •  Single registration and licensing system.
        • Online approvals and deemed permissions.
        • Inspector-cum-Facilitator system randomized web-based inspection system, replacing traditional inspection mechanisms.
• National Single Window System (NSWS)
  • • • • Integrates approvals from Central Departments and State Governments.
        • Provides a unified digital platform for investors.
• PARIVESH  2.0
  • • • • Digital platform that streamlines Environmental Clearances (EC), Forest Clearance (FC), Wildlife (WL) and Coastal Regulation Zone (CRZ) clearances.

Enhancing Market Connectivity 

• GeM (Government e-Marketplace)
  • • • • Digitize and make public procurement more streamlined and inclusive.
• ONDC (Open Network for Digital Commerce)
  • • • • Promotes open and inclusive digital commerce.
        • Reduces dependency on monopolistic platforms.
• PM Gatishakti National Master Plan
  • • • • Integrates infrastructure planning of transport and logistics infrastructure.
        • Reduces delay and enhances ease of doing businesses.

Facilitating Easier Credit Access 

• Major initiatives
  • • • • Credit Guarantee Scheme for MSMEs.
        • Pradhan Mantri Mudra Yojana (PMMY)
        • Credit Assessment Model using digital footprints.
        • Trade Receivables Discounting System (TReDS)

Ease of Tax Compliance

• Goods and Services Tax (GST)
  • • • • Replaced multiple indirect taxes with a unified tax system.
        • Reduced compliance and transaction costs.
        • Enhanced affordability and fostered entrepreneurship.
        • Registered tax payers increased from around 60 lakh to over 1.64 crore – indicates deeper formalization.
• Faceless Assessment
  • • • • Eliminated physical interface between tax payers and tax officials.
        • Enhances transparency and efficiency.
• Income Tax e-Filing Portal
  • • • • Enables immediate processing of ITRs for quicker refunds.
        • Provides multiple digital payment options.
• E-Way Bill
  • • • • Revolutionized logistics by replacing multiple state-level permits with a single, electronic document for movement of goods.
        • Reduced transport time and improved tax compliance.

Enhancing Cross-border trade 

• Major initiatives
  • • • • Districts as Export Hubs (DEH).
        • Export Promotion Mission
        • ICEGATE (Indian Customs Electronic Gateway)
        • e-coO  2.0 for Certificates of Origin
        • Trade Connect e-Platform

Digital Public Infrastructure

• Key platforms include
  • • • • Unified Payment Interface (UPI)
        • Central KYC Registry (cKYC)
        • EntityLocker

 Trust-based Governance Framework 

• Jan Vishwas Act
  • • • • Decriminalization of minor business-related offences.
        • Rationalization of regulatory provisions, improving business environment.
• Compliance reduction
  • • • • Improved regulatory clarity strengthened ease of compliance for businesses.
• Insolvency and Bankruptcy Code (IBC)
  • • • • Insolvency and Bankruptcy Code (Amendment) Act, 2026 – strengthened procedural efficiency and creditor participation.

UPSC Prelims Practice Question

Which of the following reforms are aimed at improving Ease of Doing Business?

1. National Single Window System 
2. Goods and Services Tax
3. Insolvency and Bankruptcy Code
4. Government e-Marketplace

Select the correct answer using the code below:

a) 1 and 2 only

b)1,2 and 3 only

c)2,3 and 4 only

d)1,2,3 and 4

Answer: d) 1,2, 3 and 4

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