Daily Current Affairs 01 August 2026 – IAS Current Affairs
Current Affairs 01 August 2026 focuses on the Prelims-Mains perspective. Major events are :
National Commission For Scheduled Castes (NCSC): Powers, Functions And Supreme Court Ruling
Source: The Hindu
GS II: Polity, Powers, Functions and Responsibilities of various Constitutional Bodies
Overview
- The Supreme Court has clarified that the National Commission for Scheduled Castes (NCSC) is an advisory and recommendatory constitutional body and cannot issue binding directions in service-related disputes.
- The judgment defines the constitutional scope of the Commission’s powers under Article 338, distinguishing its investigative role from the adjudicatory functions of courts and tribunals.
- It also reinforces the constitutional framework governing welfare commissions while ensuring that disputes relating to public employment are resolved through appropriate judicial mechanisms.
Why in the News?
The Supreme Court clarified on July 28, 2026, that the National Commission for Scheduled Castes (NCSC) is strictly a recommendatory and advisory body.
News in Brief
- The Supreme Court ruled that the National Commission for Scheduled Castes (NCSC) cannot issue binding directions in service-related disputes.
- The judgment arose from a dispute involving the Mumbai Port Authority and an employee’s promotion claim.
- The ruling defines the constitutional limits of NCSC’s powers and reinforces the separation between constitutional commissions and judicial bodies.
Key Highlights
- Advisory Role Only- The bench noted that while the NCSC (and parallel bodies like the NCSC and NCBC under Articles 338A and 338B) serve vital social functions, the legislature intended their roles to guide, not to replace courts or tribunals.
- Scope of Civil Court Powers- The NCSC can summon witnesses, examine documents, and receive evidence, but the Supreme Court emphasized these powers exist solely to support investigations, not to grant formal legal reliefs or pass judgments.
- Origin of the Case- The ruling emerged from an appeal by the Mumbai Port Authority against an NCSC order that had directed financial and promotional arrears for a Scheduled Caste employee.
- Broader Impact- The judgment clarifies that statutory and constitutional welfare commissions cannot issue binding directions in public employment and service matters, reinforcing their advisory and recommendatory role.
Significance of the Judgment
- Clarifies the constitutional boundaries of the NCSC.
- Prevents overlap between constitutional commissions and judicial institutions.
- Upholds the rule of law by ensuring service disputes are resolved through appropriate legal forums.
- Reinforces accountability while preserving the Commission’s role in safeguarding Scheduled Castes.
- Article 338- Creates the National Commission for Scheduled Castes (NCSC) to monitor and investigate safeguards for Scheduled Castes.
- Article 338A- Creates the National Commission for Scheduled Tribes (NCST), added by the 89th Constitutional Amendment Act of 2003 after splitting the joint commission.
- Article 338B- Grants constitutional status to the National Commission for Backward Classes (NCBC), added via the 102nd Constitutional Amendment Act of 2018.
Key Aspects of the NCSC
- Constitutional Status- The National Commission for Scheduled Castes (NCSC) is a vital constitutional body established under Article 338 of the Indian Constitution; acts as a national watchdog for marginalized communities.
- Composition- Includes a Chairperson, a Vice-Chairperson, and three Members appointed by the President.
- Core Functions- Investigate and monitor constitutional and legal safeguards for Scheduled Castes, inquires into rights violations,aids in socio-economic planning, and submits annual reports directly to the President.
- Civil Court Powers- While conducting inquiries, the Commission has powers of a civil court, including summoning witnesses, requiring the production of documents, receiving evidence on affidavits, and requisitioning public records.
Reporting Process
- The President of India places the annual and special reports of the National Commission for Scheduled Castes (NCSC), the National Commission for Scheduled Tribes (NCST), and the National Commission for Backward Classes (NCBC) before Parliament, along with an action-taken memorandum explaining the steps taken or proposed on the recommendations.
- If a report relates to a matter concerning a State Government, a copy is sent to the respective Governor, who places it before the state legislature.
Conclusion
By defining the scope of the NCSC’s authority, the judgment strengthens constitutional governance and promotes effective implementation of safeguards for Scheduled Castes.
UPSC Prelims and Mains Practice Question
Consider the following statements regarding the National Commission for Scheduled Castes (NCSC):
- It is a constitutional body established under Article 338.
- It can issue binding directions in service-related disputes.
- It has powers of a civil court while conducting inquiries.
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: C
Mains Practice Question
Q. “Constitutional commissions play an important role in safeguarding the rights of vulnerable groups, but their powers remain largely recommendatory.” Discuss in the context of the Supreme Court’s recent judgment on the National Commission for Scheduled Castes. (250 Words)
Minimum Support Price (MSP) vs Minimum Income Support (MIP)
Source: Indian Express
GS III: Issues related to Direct and Indirect Farm Subsidies and Minimum Support Prices
Overview
- The demand by farmers in Madhya Pradesh for full procurement of summer moong at the Minimum Support Price (MSP) has renewed the debate over the effectiveness of India’s price support system.
- While MSP has long served as a safety net against price fluctuations, its limited coverage, high fiscal costs, and market distortions have raised concerns about its long-term sustainability.
- In this context, economists advocate a shift towards Minimum Income Support (MIP) through direct cash transfers, complemented by crop insurance, infrastructure, and agricultural reforms.
- The issue is significant for India’s efforts to improve farmer incomes, promote crop diversification, and build a more efficient and sustainable agricultural sector.
Why in the News?
Farmers in Madhya Pradesh have demanded full procurement of summer moong at the Minimum Support Price (MSP) after market prices fell below the MSP.
News in Brief
- The issue has revived the debate on whether Minimum Income Support (MIP) through direct income transfers is a more sustainable approach than large-scale MSP procurement.
- Experts argue that while MSP provides price assurance, expanding procurement to all crops is fiscally expensive, difficult to implement, and may discourage crop diversification.
- Economists advocates direct income support, complemented by crop insurance, agricultural research, and rural infrastructure, to ensure stable farmer incomes and sustainable agricultural growth.
Background
- Summer moong prices in Madhya Pradesh have fallen below MSP, leading to demands for higher government procurement.
- The State has increased procurement limits, but farmers continue to seek full MSP procurement.
Note– Government price mechanisms like Minimum Support Price (MSP) distort crop choices and skew markets, whereas direct income transfers (such as PM-KISAN) offer a cleaner, market-friendly safety net that encourages growing what consumers actually demand.
Key Issues with the MSP System
- Market Distortion- High price guarantees for specific staple grains (like wheat and paddy) incentivize farmers to overproduce them, even in water-stressed regions, discouraging crop diversification into pulses, oilseeds, or horticulture.
- Uneven Reach- Government procurement heavily favors select grains and regions, meaning a vast majority of smallholder farmers across India do not actually benefit from guaranteed physical buying.
- Fiscal and Logistical Burden- Large-scale MSP procurement leads to high expenditure on procurement, storage, and maintenance of grain stocks, while surplus stocks can distort market prices.
- Fails to Address Structural Challenges– MSP alone cannot resolve underlying issues such as groundwater depletion, fragmented landholdings, rising input costs, and low agricultural productivity.
Suggested Reform – Minimum Income Support (MIP)
- Market Freedom- Direct cash transfers give farmers baseline financial stability while letting market demand dictate which crops they plant.
- Universal Coverage- Per-acre or per-household cash transfers (like direct benefit transfers) can reach all land-owning or tenant farmers regardless of what crop they grow or where they live.
- Targeted Resource Use- Cash allows families to flexibly buy quality seeds, hire labor, invest in drip irrigation, or manage personal emergencies.
- Complementary Policies- Economists suggest combining direct income support with robust crop insurance, infrastructure investment, and open agricultural research rather than relying on heavy market interventions.
Key Facts – Minimum Support Price (MSP)
- Coverage– MSP is announced for 23 crops—7 cereals, 5 pulses, 7 oilseeds, and 4 commercial crops.
- Recommendation- MSP is recommended by the Commission for Agricultural Costs and Prices (CACP).
- Approval– It is approved by the Cabinet Committee on Economic Affairs (CCEA) before each sowing season.
- Procurement Agencies– Major procurement is carried out by the Food Corporation of India (FCI) (mainly wheat and rice) and NAFED (mainly pulses and oilseeds).
Key Facts – PM-KISAN
- Financial Assistance– Provides ₹6,000 per year to eligible farmer families.
- Payment Method– The amount is transferred through Direct Benefit Transfer (DBT) in three equal instalments of ₹2,000 each.
- Eligibility– Covers eligible landholding farmer families, excluding categories such as institutional landholders and certain high-income taxpayers.
- Objective– To supplement farmers’ income and support their agricultural and household needs.
Conclusion
A sustainable agricultural policy should move beyond price support and focus on stable farm incomes, efficient markets, crop diversification, and greater public investment in agricultural infrastructure, ensuring both farmer welfare and long-term agricultural sustainability.
UPSC Prelims and Mains Practice Question
Consider the following statements:
- MSP is recommended by the Commission for Agricultural Costs and Prices (CACP).
- MSP is legally guaranteed for all agricultural crops in India.
- MSP aims to protect farmers from distress sales.
Which of the statements given above is/are correct?
A. 1 and 3 only
B. 2 only
C. 1, 2 and 3
D. 3 only
Answer: A
Mains Practice Question
Q. “Minimum Support Price alone cannot ensure farmers’ welfare. Discuss the need for a shift towards comprehensive income support and market-oriented agricultural reforms.” (250 words)
SHANTI Initiative And The Bay Of Bengal: Significance And Challenges
Source: The Hindu
GS II: India and its Neighbourhood–Relations
Overview
- The SHANTI (Securing Holistic Advancement through Norms, Trust and Integrity) framework marks the next phase of India’s maritime strategy by translating the broader visions of SAGAR and MAHASAGAR into an operational model for regional cooperation.
- With the Bay of Bengal as its pilot region, the initiative seeks to strengthen maritime security, connectivity, disaster resilience, blue economy cooperation, and rules-based governance through platforms such as BIMSTEC.
- Beyond supporting India’s Act East Policy and Indo-Pacific vision, SHANTI also reinforces India’s aspiration to play a greater role in global governance, including its campaign for the 2028–29 UN Security Council term.
Why in the News?
India proposed the SHANTI (Securing Holistic Advancement through Norms, Trust and Integrity) framework as a maritime governance model while launching India’s candidature for the UN Security Council (UNSC) for the 2028-29 term.
News in Brief
- The Bay of Bengal is emerging as a strategic bridge connecting South Asia and Southeast Asia.
- The region has gained strategic importance amid growing geopolitical competition in the Indo-Pacific.
- The initiative seeks to deepen cooperation with Bay of Bengal littoral countries through security, connectivity, trade and sustainable development.
SHANTI Initiative
Core Purpose & Background
- UNSC Campaign Vision– Launched in July 2026 at UN Headquarters as India’s guiding approach for global governance, peace, and multilateral cooperation.
- Evolution of Maritime Vision– Builds directly on India’s previous regional doctrines—SAGAR (Security and Growth for All in the Region, 2015) and MAHASAGAR (2025).
- Operationalizing Strategy- While SAGAR and MAHASAGAR set broad geographic and strategic goals, SHANTI provides the practical, operational framework to implement them.
Key Pillars of SHANTI
- Norms- Respect for international law, rules-based order, and cooperative maritime behavior.
- Trust– Confidence-building measures, transparent communication, and information sharing.
- Integrity- Open, inclusive governance and reliable regional partnerships.
Regional Focus
- Bay of Bengal Anchor- The framework is initially being operationalized in the Bay of Bengal (leveraging groups like BIMSTEC) as a pilot region before expanding into the broader Indo-Pacific.
- First Responder Role- Positions India as a preferred security provider, focusing on humanitarian assistance, disaster relief, and tackling non-traditional maritime threats.
Significance of SHANTI Initiative
- Promotes Security, Navigation, Trade, Connectivity and Inclusive Development.
- Boosts maritime domain awareness and regional disaster response.
- Drives blue economy cooperation and sustainable marine resource management.
- Strengthens regional partnerships through capacity building and infrastructure.
Bay of Bengal – An Ideal Region for the SHANTI Framework
- Shared maritime ecosystem – Cyclones, marine pollution, and fish stocks transcend national boundaries, making regional cooperation essential.
- Common climate challenges – Littoral states face similar threats from cyclones, sea-level rise, coastal erosion, and extreme weather events.
- Strategic maritime connectivity – The Bay links South Asia with Southeast Asia and provides access to the Strait of Malacca, a vital global shipping route.
- Stable regional environment – Compared to the western Indian Ocean, the Bay of Bengal has relatively lower levels of geopolitical conflict, enabling cooperative maritime governance.
- Strong institutional foundation – Regional mechanisms such as BIMSTEC provide an established platform for collaboration on security, connectivity, disaster management, and economic integration.
- Geopolitical Gateway- Acts as India’s primary access point to the Indo-Pacific and Southeast Asia.
- Maritime Defense- Supports India’s maritime security, through the Andaman and Nicobar Islands to secure critical sea lanes.
- India’s cooperative leadership model – The region allows India to promote a rules-based, inclusive, and trust-driven maritime order through the SHANTI framework.
Significance for India
- Regional Leadership- Solidifies India’s primary security role in the Indo-Pacific.
- Multilateral Ties- Empowers the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) as a core cooperative body.
- Supply Chain Resilience- Expands trade avenues and enhances national energy security.
Key Terms
- BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation)- A seven-member regional organization (Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand) linking South and Southeast Asia.
- SAGAR (Security and Growth for All in the Region)- India’s strategic vision launched in 2015 for maritime economic and security cooperation in the Indian Ocean.
- MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions)- An expanded outreach vision introduced to scale up maritime cooperation, capacity building, and security across the wider Indo-Pacific and Global South.
Key Challenges
Geopolitical & Traditional Security
- China’s Footprint- Beijing seeks alternative access routes through regional ports to bypass the Malacca chokepoint.
- Myanmar Instability- Local conflict halts vital cross-border links like the India–Myanmar–Thailand Highway.
- Response- Boost maritime tracking using regional intelligence hubs and coordinate security at the National Security Adviser level.
Economic & Infrastructure Connectivity
- Trade Barriers- Slow customs checks and poor port facilities stall commerce.
- Financing Limits- Lack of funds delays regional building projects.
- Response- Apply the BIMSTEC Maritime Transport Cooperation Agreement and align port rules.
Institutional Gaps & Trust Deficit
- Fragmented Groups- Existing regional bodies work in isolation rather than together.
- Smaller neighbors worry about India holding an oversized power balance.
- Response- Build inclusive corridor rules and open decision-making processes.
Environmental & Non-Traditional Threats
- Eco-Risks- Rising seas, severe storms, and illegal fishing damage coastal stability and fish stocks
- Response- Set up joint disaster response frameworks and push for green ocean economies.
Conclusion
The Bay of Bengal offers India an opportunity to strengthen regional cooperation through the SHANTI framework by promoting maritime security, connectivity, and sustainable development.
By complementing initiatives such as Act East, SAGAR, and BIMSTEC, India can foster a stable, inclusive, and resilient maritime order while enhancing its role as a responsible stakeholder in the Indo-Pacific.
UPSC Prelims and Mains Practice Question
Consider the following statements:
- The Bay of Bengal connects the Indian Ocean with the Strait of Malacca.
- BIMSTEC includes only South Asian countries.
- SAGAR is India’s maritime vision promoting regional security and cooperation.
Which of the statements given above is/are correct?
A. 1 and 3 only
B. 2 only
C. 1, 2 and 3
D. 3 only
Answer: A
Mains Practice Question
Q. “The Bay of Bengal is central to India’s maritime security and Indo-Pacific strategy.” Discuss the significance of the SHANTI initiative in strengthening regional cooperation and strategic stability. (250 words)
Pradhan Mantri Viksit Bharat Rojgar Yojana (PM-VBRY)- Formal Employment and Social Security
Source: PIB
GS III: Indian Economy, Employment, Inclusive Growth
Overview
- The Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) is an Employment-Linked Incentive (ELI) scheme launched by the Government of India to promote formal employment by supporting first-time employees and incentivising employers to create new jobs.
- Implemented through an EPFO-linked digital platform from 1 August 2025 to 31 July 2027.
- The scheme seeks to expand social security coverage, encourage workforce formalisation, and strengthen employment generation, particularly in labour-intensive sectors, in line with the vision of Viksit Bharat 2047.
Why in the News?
PM-VBRY has completed one year of implementation on 1 August 2026, marking a key milestone in the Government’s employment generation strategy.
News in Brief
- The government highlighted its progress in promoting formal employment and social security through an EPFO-linked framework.
- The scheme supports first-time employees and incentivises employers to generate new jobs.
- It aligns with the vision of Viksit Bharat 2047 by strengthening workforce formalisation.
Key Features of PM- VBRY
- The Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) is an employment-linked incentive scheme by the Government of India.
- It aims to generate employment for over 3.5 crore people, including 1.92 crore first-time employees.
- PM-VBRY was launched in August 2025 and is being implemented from 1 August 2025 to 31 July 2027.
- Eligible registrations can be processed via the PMVBRY Portal.
Objectives
- Promote formal jobs in the organized sector.
- Encourage first-time entry into the workforce.
- Expands social security through direct benefit transfers managed through the Employees’ Provident Fund Organisation.
- Support job creation in labor-intensive sectors.
Incentives for First-Time Employees (Part A)
- Eligibility– The incentive is available to first-time employees registered with the Employees’ Provident Fund Organisation (EPFO) who earn a monthly salary of up to ₹1 lakh, encouraging new entrants to join the formal workforce.
- Financial Incentive– Eligible employees receive a one-time financial incentive equivalent to one month’s EPF wage, subject to a maximum limit of ₹15,000, to support their transition into formal employment.
- Disbursement Mechanism-The incentive is released in two instalments- the first after six months of continuous service and the second after twelve months of continuous service, promoting sustained employment rather than short-term hiring.
- Financial Inclusion- Before receiving the second instalment, employees must complete a financial literacy programme. Additionally, a portion of the incentive is invested in a designated savings instrument, which can be withdrawn later, encouraging long-term savings and financial security.
Incentives for Employers (Part B)
- Eligibility– Employers hiring additional employees with a monthly salary of up to ₹1 lakh are eligible for financial assistance under the scheme, provided the employees are retained for at least six months.
- Financial Incentive– Employers receive up to ₹3,000 per month for each eligible additional employee for a period of two years, helping reduce recruitment and wage-related costs.
- Special Support for Manufacturing– Recognising the sector’s high employment potential, manufacturing establishments are eligible to receive incentives for an additional two years, extending the support period to four years.
- Employment Generation– By lowering the cost of hiring and rewarding workforce retention, the scheme encourages employers to create new formal jobs, particularly in labour-intensive industries, while promoting long-term and stable employment.
Key First-Year Milestones
- Workforce Growth- Over 72 lakh first-time workers registered through the Employees’ Provident Fund Organisation (EPFO).
- Women Participation- Nearly 30% of the total beneficiaries aided in the first year are women.
- Direct Benefit Transfers– More than 15 lakh beneficiaries have already received their initial financial incentives directly via Aadhaar-linked accounts.
- Strengthened organised employment and social security coverage.
Digital Governance Framework
- PM-VBRY is implemented through a fully digital EPFO-linked platform, ensuring seamless verification and efficient service delivery.
- The scheme uses Aadhaar authentication, Universal Account Number (UAN), Electronic Challan-cum-Return (ECR) filings, and Face Authentication through the UMANG App to verify beneficiaries and ensure compliance.
- Incentives are credited directly to beneficiaries’ Aadhaar-linked bank accounts through the Direct Benefit Transfer (DBT) system, reducing leakages and enhancing accountability.
- A dedicated PM-VBRY portal facilitates end-to-end implementation, enabling real-time monitoring of beneficiaries and sector-wise progress while improving transparency.
Significance and Challenges
- Brings millions of informal workers into the organised social security net, promoting formalisation of India’s labour market.
- Focuses heavily on labour-intensive manufacturing to complement the National Manufacturing Mission.
- Direct benefit transfers link young workers to organized banking and provident funds.
- Contributes to inclusive growth and demographic dividend.
Challenges
- A large portion of India’s labour force still operates outside the EPFO framework.
- Smaller businesses and rural workers often lack information on how to claim incentives.
- Ensuring companies maintain employment levels after government subsidies end.
- Achieving seamless, corruption-free rollout across diverse geographic and industrial sectors.
Conclusion
PM-VBRY represents a significant step towards expanding formal employment, strengthening social security, and harnessing India’s demographic dividend.
By combining employment-linked incentives with a technology-driven implementation framework, the scheme seeks to create sustainable jobs while advancing the vision of Viksit Bharat 2047.
UPSC Prelims and Mains Practice Question
Consider the following statements regarding the Pradhan Mantri Viksit Bharat Rojgar Yojana (PM-VBRY):
- It encourages first-time formal employment through EPFO registration.
- Employers in all sectors receive incentives for four years.
- Benefits are transferred through Direct Benefit Transfer (DBT).
Which of the statements given above is/are correct?
(a) 1 and 3 only
(b) 2 only
(c) 1 and 2 only
(d) 1, 2 and 3
Answer: (a)
Mains Practice Question
Q. “Employment generation and labour market formalisation are essential for achieving inclusive economic growth in India.” Discuss. (250 Words)
Daily Current Affairs: Click Here