Daily Current Affairs 02 July 2026 – IAS Current Affairs

Current Affairs 02 July 2026 focuses on the Prelims-Mains perspective. Major events are :

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Cotton Productivity In India: Challenges, GM Crops & Way Forward

Source: Indian Express
GS III: Major Crops – Cropping Patterns, Environmental Degradation, Science and Technology- Developments and their Applications 

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Overview

1. News in Brief
2. Cotton in India
3. What is GM Cotton?
4. Reason for Decline of Cotton Productivity
5. Way Forward

Why in the News?

India’s cotton productivity debate has gained attention amid discussions on approving new GM cotton varieties, with emphasis on improving soil health, agronomic practices, and climate resilience rather than relying solely on genetically modified seeds.

News in Brief

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• The debate on reviving India’s cotton sector has highlighted that approving new GM cotton varieties alone is unlikely to significantly increase productivity.
• Declining soil health, climate change, pest resistance, and poor agronomic practices are identified as the major causes of stagnant cotton yields.
• The focus should shift towards soil restoration, efficient irrigation, integrated crop management, and climate-resilient cotton varieties under the Cotton Technology Mission to ensure sustainable productivity.

Cotton in India

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Importance of Cotton

• Supports the textile industry, one of India’s largest manufacturing sectors.
• Provides raw material for the garment and apparel industry.
• Contributes significantly to cotton yarn, textiles, and garment exports, earning valuable foreign exchange.
• Provides livelihood to over six million cotton farmers and millions more engaged in ginning, spinning, weaving, processing, and marketing.
• Generates substantial rural employment, especially in cotton-growing regions.
• Contributes to the growth of allied industries such as textiles, handicrafts, and apparel manufacturing.

Cotton Cultivation in India

• India has the largest area under cotton cultivation in the world.
• Cotton is cultivated in both irrigated and rainfed areas, with nearly two-thirds of the crop grown under rainfed conditions, making production vulnerable to climate variability.
• Cotton is mainly grown in the Kharif season and requires:
  • Warm climate (21–30°C)
  • Moderate rainfall (50–100 cm)
  • Frost-free conditions
  • Deep black cotton (regur) soils, though it is also grown in alluvial and red soils.

Major Cotton-Producing States

• Gujarat
• Maharashtra
• Telangana
• Andhra Pradesh
• Rajasthan
• Madhya Pradesh
• Punjab
• Haryana

Challenges in India’s Cotton Sector

• Stagnating productivity despite widespread adoption of Bt cotton.
• Declining soil fertility and organic carbon.
• Climate change leading to heat stress, droughts, and erratic rainfall.
• Rising pest resistance, especially pink bollworm.
• High dependence on rainfed agriculture.
• Increasing cost of cultivation and input use.

What is GM Cotton?

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• Genetically Modified (GM) Cotton is cotton whose genetic material (DNA) is altered using biotechnology to introduce desirable traits such as insect resistance or herbicide tolerance.
• The objective is to reduce crop losses, lower pesticide use, and improve farm management.

Bt Cotton

• Bt Cotton contains a gene from the soil bacterium Bacillus thuringiensis (Bt).
• The gene produces a Bt protein that is toxic to bollworms, one of the most destructive pests of cotton.
• It reduces the need for chemical insecticides against bollworms.
• Approved for commercial cultivation in India in 2002.
• Bt Cotton is currently the only commercially approved GM crop in India.
  • GM mustard has received regulatory approval but is not yet commercially cultivated on a large scale.

New GM Cotton Technologies

• The next-generation GM cotton technologies proposed for approval:
  • BG-II RRFlex- Combines insect resistance with herbicide tolerance.
  • Bollgard-III- Designed to provide broader and longer-lasting protection against insect pests.
  • Herbicide-Tolerant (HT) Cotton – Allows the use of specific herbicides for effective weed control.
  • ThryvOn Technology – Provides protection against sap-sucking pests such as aphids and thrips.
• Intended Benefits
  • Better weed management.
  • Enhanced protection against insect pests.
  • Reduced pesticide use.
  • Easier and more efficient farm operations.
  • Lower labour requirements for weed control.
• Concerns Highlighted
  • While these technologies can improve pest and weed management, they do not directly increase cotton yields.
  • Sustainable improvements in productivity require:
    • Better soil health.
    • Improved agronomic practices.
    • Efficient water management.
    • Climate-resilient cotton varieties.
    • Integrated Pest Management (IPM) to tackle pest resistance.

Reason for Decline of Cotton Productivity

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• Poor soil health has reduced cotton productivity due to declining Soil Organic Carbon (SOC), nutrient imbalance, and land degradation.
• Climate change has increased heat waves, erratic rainfall, and drought, adversely affecting cotton yields.
• Pink bollworm has developed resistance to Bt cotton, reducing its effectiveness against pests.
• Imbalanced use of chemical fertilizers has lowered soil fertility and nutrient-use efficiency.
• Water stress has become a major challenge as most cotton cultivation in India is rainfed.
• Continuous monocropping has depleted soil nutrients and increased pest and disease incidence.

 

Way Forward

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• Restore soil health by increasing Soil Organic Carbon (SOC) through organic manure and crop residues.
• Promote balanced fertilizer use based on soil health cards and nutrient requirements.
• Improve irrigation efficiency through micro-irrigation and better water management.
• Adopt Integrated Pest Management (IPM) to reduce pest resistance and pesticide use.
• Develop climate-resilient cotton varieties to withstand heat, drought, and emerging pests.
• Strengthen agricultural extension services to disseminate scientific farming practices.
• Approve new technologies only after rigorous scientific assessment and biosafety evaluation.
• Encourage crop diversification and sustainable farming to improve soil fertility and long-term productivity.

 

UPSC Prelims and Mains Practice Question

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Consider the following statements regarding GM crops in India:

1. Bt cotton is the only commercially approved GM crop in India.
2. Bt cotton contains a gene from Bacillus thuringiensis that provides resistance against bollworms.
3. New GM cotton technologies directly guarantee higher cotton yields.

Select correct answer using the code given below

a) 1 and 2 only

b) 2 and 3 only

c) 3 only

d) 1,2 and 3

Answer: a) 1 and 2 only

Mains Practice Question

Q. Critically examine the role of genetically modified (GM) cotton in improving cotton productivity in India. Suggest measures for sustainable growth of the cotton sector. (150 words)

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Public-Private Partnership (PPP) 2.0

Source: Indian Express
GS II: Government Policies and Interventions for Development, GS III: Infrastructure, Investment Models

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Overview

1. News in Brief
2. What is Public-Private Partnership (PPP)?
3. Need for PPP 2.0 and Challenges in the Existing Model
4. Government Initiatives to Promote PPP
5. Way Forward

Why in the News?

An article by former Finance Secretary Arvind Mayaram argues that India needs a PPP 2.0 (Public-Private Partnership 2.0) model for infrastructure financing.

News in Brief

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• PPP 1.0 improved infrastructure but faced financing challenges after the 2008 global financial crisis.
• India’s large infrastructure and Net Zero 2070 goals require greater private investment, capital recycling, and long-term institutional funding.
• PPP 2.0 proposes risk-based financing, capital recycling and greater participation of long-term institutional investors.

What is Public-Private Partnership (PPP)?

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• A Public-Private Partnership (PPP) is a long-term agreement between the government and private sector to develop, finance, operate and maintain public infrastructure or services while sharing risks and rewards.
• Objectives
  • Improve infrastructure quality through private sector expertise.
  • Mobilise private investment for infrastructure development.
  • Enhance efficiency in project execution and service delivery.
  • Reduce the government’s fiscal burden by sharing costs with the private sector.
  • Ensure faster implementation and timely completion of projects.

 

Need for PPP 2.0 and Challenges in the Existing Model

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• India aims to become a developed nation (Viksit Bharat) by 2047, requiring world-class infrastructure and massive investments.
• However, the existing financing model has several structural weaknesses, making PPP 2.0 essential.

Huge Infrastructure Requirement

• India has large infrastructure projects worth around ₹185 lakh crore under the National Infrastructure Pipeline (NIP).
• Significant investments are needed in:
  • Roads, railways, ports and airports.
  • Urban infrastructure (water supply, sanitation, metro rail).
  • Logistics and industrial corridors.
  • Digital infrastructure (5G, broadband, data centres).
• Since government resources alone are insufficient, greater private participation through PPP 2.0 is necessary.

Green Transition and Net Zero Goal

• India’s commitment to Net Zero by 2070 requires large investments in:
  • Renewable energy.
  • Green hydrogen.
  • Smart grids and transmission networks.
  • Climate-resilient infrastructure.
  • Sustainable cities and EV charging infrastructure.
• PPP 2.0 can mobilise long-term private capital to support this transition.

Fiscal Constraints

• The government must also fund health, education, defence, social welfare and rural development.
• Excessive public borrowing increases the fiscal deficit and public debt.
• PPP 2.0 enables the government to share investment costs and risks with the private sector.

Challenges in the Existing Financing Model

• Infrastructure projects have traditionally relied on commercial bank loans, creating several problems:
  • Heavy dependence on banks due to limited long-term financing options.
  • Asset-liability mismatch—bank loans are short-term (7–10 years), while infrastructure assets generate returns over 30–50 years.
  • Banks bear high construction risks such as land acquisition delays, regulatory clearances, cost overruns and legal disputes.
  • Revenue uncertainty due to lower demand, policy changes or economic slowdowns increases default risk.
  • After the 2008 Global Financial Crisis, many projects became stressed assets, leading to rising NPAs, reduced bank lending and declining investor confidence.
• Need for Risk-Based Financing
  • The core problem is that long-term infrastructure assets are financed with short-term bank capital, creating financial stress for both banks and developers.

How PPP 2.0 Solves the Problem

• PPP 2.0 introduces a risk-based financing model, where:
  • High-risk stages (planning, land acquisition and construction) are financed by the Government, developers and Development Finance Institutions (DFIs).
  • Medium-Low Risk Stages (Operational phases) are refinanced by long-term investors such as Pension Funds, Insurance Companies, Sovereign Wealth Funds and InvITs.
• This approach:
  • Matches the right type of capital with the project’s risk.
  • Reduces dependence on commercial banks.
  • Promotes capital recycling.
  • Attracts patient long-term capital such as Pension Funds, Insurance Companies, Sovereign Wealth Funds and Infrastructure Investment Trusts (InvITs).
  • Reduces NPAs and strengthens sustainable infrastructure financing.

Government Initiatives to Promote PPP

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• National Infrastructure Pipeline (NIP)
  • A long-term infrastructure investment plan, envisages investment across sectors such as transport, energy, urban infrastructure and digital connectivity.
  • Aims to improve infrastructure and attract private investment through PPPs.
• PM Gati Shakti- the National Master Plan for Multi-modal Connectivity.
  • Integrates infrastructure planning across ministries using a GIS-based digital platform.
  • Reduces project delays, logistics costs and improves coordinated infrastructure development.
• National Monetisation Pipeline (NMP)
  • Launched to monetise existing brownfield public assets.
  • Generates resources by leasing assets to private players while retaining government ownership.
  • Funds new infrastructure projects through capital recycling.
• Asset Monetisation
  • Monetises operational public assets such as roads, railways, airports and power transmission lines.
  • Unlocks the value of existing assets and attracts long-term private investment.
  • Reduces the fiscal burden on the government.
• Infrastructure Investment Trusts (InvITs)
  • SEBI-regulated investment vehicles that own and manage operational infrastructure assets.
  • Enable infrastructure developers to raise funds by monetising completed projects.
  • Attract long-term investors such as pension funds and insurance companies.
• National Bank for Financing Infrastructure and Development (NaBFID)
  • Established  as India’s Development Finance Institution (DFI).
  • Provides long-term finance for infrastructure projects.
  • Supports PPP projects and reduces dependence on commercial banks.
• Viability Gap Funding (VGF)
  • Financial support provided by the Government to economically justified but financially unviable PPP projects.
  • Improves project viability and encourages private sector participation.
  • Widely used in sectors such as transport, urban infrastructure and social infrastructure.

Way Forward

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• Adopt PPP 2.0 with risk-based financing.
• Strengthen contract enforcement and dispute resolution.
• Develop the corporate bond market for long-term funding.
• Expand the use of InvITs and REITs for asset monetisation.
• Encourage investments by pension funds and insurance companies.
• Strengthen NaBFID for infrastructure financing.
• Improve project planning, governance and transparency.
• Ensure balanced and transparent risk-sharing between public and private partners.

UPSC Prelims and Mains Practice Question

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Consider the following statements regarding Public-Private Partnership (PPP):

1. PPP involves sharing risks between the government and private sector.
2. PPP projects are financed only by government grants.
3. PPP aims to improve infrastructure efficiency.

Which of the statements given above is/are correct?

A. 1 and 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3

Answer: B

Mains Practice Question

Q. “India’s infrastructure financing requires a transition from capital mobilisation to capital circulation.” Discuss the need for PPP 2.0 and examine how matching capital to project risk can improve infrastructure development. (10 Marks, 150 Words)

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Mid-Day Meals: Child Nutrition And The PM POSHAN Scheme

Source: Indian Express
GS II: Welfare Schemes and the Performance of these Schemes, Government Policies and Interventions, Issues in Services Relating  to Health

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Overview

1. News in Brief
2. Background: PM POSHAN Scheme
3. Importance of Eggs in PM POSHAN
4. A Case Study: Tamil Nadu Model
5. Criticism around including Eggs & Way Forward

Why in the News?

The West Bengal Government has decided to remove eggs from school mid-day meals (PM POSHAN), reigniting the debate over child nutrition.

News in Brief

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• The issue highlights the importance of nutrition security, learning outcomes, and public health policy.
• Eggs are among the most nutrient-dense, affordable, and complete protein sources available for children.
• Evidence from successful implementation of the scheme shows that nutritious school meals, including eggs, can improve enrolment, attendance, child health, and overall learning outcomes.

Background: PM POSHAN Scheme

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• The PM POSHAN (Pradhan Mantri Poshan Shakti Nirman) Scheme is the flagship school meal programme of the Government of India aimed at improving the nutritional status of school children.
• It was renamed from the Mid-Day Meal Scheme (MDMS) to PM POSHAN in September 2021.
• Implemented jointly by the Central and State Governments.

Objectives

• Improve Nutritional Status
  • Provide hot cooked, nutritious meals to school children.
    Address malnutrition, undernutrition, and micronutrient deficiencies.
  • Support healthy physical and mental development.
  • Includes School Nutrition Gardens (Poshan Vatikas) to promote dietary diversity and nutrition awareness.
  • Supports the use of Fortified Rice to address micronutrient deficiencies in children.
• Increase School Enrolment
  • Encourage children, especially from economically weaker sections, to attend school.
  • Promote universal access to elementary education.
• Reduce Dropout Rates
  • Incentivize children to continue their education.
  • Reduce child labour and improve school retention.
• Improve Attendance
  • Ensure regular attendance by providing free nutritious meals.
  • Improve concentration and classroom participation.
• Promote Social Equality
  • Children from different social, economic, and caste backgrounds eat together.
  • Promotes social inclusion, equality, and reduces discrimination.

Coverage

• The scheme covers:
  • Government schools
  • Government-aided schools
  • Local body schools
  • Special Training Centres under the Right to Education (RTE) Act
  • Madrasas and Maqtabs supported under the Samagra Shiksha Scheme (where applicable)

Beneficiaries

• Students studying in Classes I to VIII (Primary and Upper Primary).
• Social audits and community participation are encouraged for better transparency and accountability.

Importance of Eggs in PM POSHAN

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• Contains all 9 essential amino acids and is easily digestible.
• Rich in choline, vitamin B12, and folate, supporting memory and cognitive growth.
• Helps reduce stunting, wasting, and protein deficiency.
• Enhances concentration, attendance, and academic performance.
•  Low-cost, widely available, and ideal for school meals.
• Rich in protein, healthy fats, vitamins A, D, B12, riboflavin, choline, iron, selenium, and zinc.
• Importance of Choline – Essential for brain development, memory, and nervous system function.
• Eggs vs Plant-Based Proteins
  • Eggs: Complete protein with high digestibility.
  • Plant Proteins (pulses, soybean, millets): Affordable and fibre-rich but often lack one or more essential amino acids; combining cereals and pulses improves protein quality.

 

A Case Study: Tamil Nadu Model

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• Tamil Nadu is a pioneer in India’s school meal programme.
• Evolution
  • 1925: P. T. Thiagaraya Chetty, President of the Madras Corporation, introduced India’s first school meal programme at the Thousand Lights Municipal School, Madras.
  • 1956: K. Kamaraj expanded the Mid-Day Meal Scheme across Tamil Nadu to improve school enrolment and reduce dropouts.
  • 1982: M.G. Ramachandran (MGR) launched the Nutritious Meal Programme, expanding coverage and improving the nutritional quality of meals.
  • Later: Tamil Nadu Government introduced eggs in school meals to enhance children’s protein intake and nutritional status.
• Achievements
  • Increased school admissions, especially among disadvantaged children.
  • Reduced Dropouts and Improved student retention.
  • Encouraged regular school attendance.
  • Reduced protein and micronutrient deficiencies.
  • Better nutrition improved concentration and academic performance.
  • Inclusion of eggs significantly improved children’s protein consumption.

 

Criticism around including Eggs

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Arguments in Favour 

• Low-cost and nutrient-dense food.
• Provides all essential amino acids.
• Helps prevent stunting, wasting, and protein deficiency.
• Rich in choline and vitamin B12, improving cognitive function.
• Encourages regular attendance and reduces dropouts.
• Better nutrition improves concentration and academic performance.

Arguments Against

• Due to Religious and Cultural dietary belief some communities object
• Considering Vegetarian preferences it is not acceptable to all children.
• Logistical Challenges including procurement, storage, and distribution issues and proper handling to prevent spoilage.

Way Forward

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• Adopt a Science-Based Nutrition Policy
  • Prioritize evidence-based dietary decisions.
• Ensure State Flexibility
  • Allow states to design menus based on local preferences while meeting nutritional standards.
• Provide Nutritious Alternatives
  • Offer milk, pulses, or other protein-rich foods where eggs are not acceptable.
• Strengthen PM POSHAN
  • Improve monitoring, quality, and implementation.
• Promote Nutrition Awareness
  • Educate parents and communities on balanced diets.
• Invest in Human Capital
  • Treat child nutrition as a key driver of health, education, and economic development.

UPSC Prelims and Mains Practice Question

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Which Article of the Constitution directs the State to raise the level of nutrition and improve public health?

A. Article 39A
B. Article 47
C. Article 51A
D. Article 46

Answer: B

Mains Practice Question

Q. “School nutrition programmes are not merely welfare measures but investments in human capital.” Discuss with reference to PM POSHAN and the role of nutrition in improving educational outcomes.

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