Daily Current Affairs 08 October 2026 2026 – IAS Current Affairs

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

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NSSH Scheme Empowering SC/ST Entrepreneurs Through MSMEs

Source: PIB
GS II: Welfare schemes for vulnerable sections, GS III: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment

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Why in the News?

The PIB highlighted the role  of the National SC-ST Hub (NSSH) in promoting entrepreneurship among Scheduled Caste (SC) and  Scheduled Tribe (ST) communities by improving access to finance, skills, technology, monitoring and markets.

News in Brief

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• National SC-ST Hub (NSSH), launched in 2016 and implemented through NSIC, supports SC/ST-owned enterprises across different stages of business growth.
• It combines capacity building, financial assistance, mentoring and market support to address barriers faced by SC/ST entrepreneurs.
• Its focus on public procurement has expanded market opportunities for SC/ST-owned MSEs, with procurement witnessing substantial growth over the years.
• In 2025–26, NSSH expanded its training and outreach, including participation of women and coverage of aspirational districts.

About NSSH

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• Launched on 18 October 2016, the National SC-ST Hub (NSSH) Scheme provides focused support to enterprises across different stages of their growth journey.
• Implemented through the National Small Industries Corporation (NSIC), the scheme helps address barriers faced by SC/ST-owned enterprises and supports their participation in public procurement.
• Enterprise development initiatives under NSSH include training, mentoring, business development, networking and knowledge support.
• Together, these interventions help entrepreneurs improve business capabilities, access new opportunities and build more competitive enterprises.

Why is it important?

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• Micro, Small and Medium Enterprises (MSMEs) provide an important pathway to entrepreneurship, employment and economic opportunity across India’s urban and rural areas.
• Making this growth more inclusive requires greater participation of historically underrepresented communities, particularly SC/ST communities, to participate, compete and grow.
• In this context, the National SC-ST Hub (NSSH) promotes inclusive entrepreneurship by helping SC/ST enterprises overcome barriers related to finance, skills, technology and markets.
• Through training, mentoring, financial support and market linkages, the scheme strengthens their capabilities and expands access to wider opportunities.
• Its focus on public procurement further connects SC/ST owned MSEs with institutional buyers, helping them become more competitive and participate meaningfully in India’s growing MSME ecosystem.

Major Components of NSSH

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Special Credit Linked Capital Subsidy Scheme (SCLCSS)

• The scheme supports SC/ST owned MSEs in strengthening their businesses through investment in plant, machinery and equipment.
• It covers both manufacturing and service enterprises and provides capital subsidy on purchases financed through institutional credit.
• Since its inception, it has supported several MSEs across multiple States and Union Territories.

Single Point Registration Scheme (SPRS)

• The scheme facilitates the participation of MSEs in Government procurement through NSIC registration.
• Registered enterprises receive benefits such as free tender sets and exemption from Earnest Money Deposit (EMD), making it easier for them to compete for Government contracts.

Public Procurement Preference

• The Public Procurement Policy provides a dedicated procurement space for MSEs, including a specific share for SC/ST owned MSEs.
• This connects disadvantaged entrepreneurs with institutional buyers and provides a direct market opportunity beyond financial assistance.

Special Marketing Assistance Scheme (SMAS)

• The scheme improves the visibility and market competitiveness of SC/ST enterprises through exhibitions, trade fairs, vendor development programmes, workshops and awareness campaigns.
• It also supports participation in domestic and international events, helping enterprises build market linkages and identify new business opportunities.

Financial and Compliance Support

• NSSH reduces the operational costs faced by SC/ST MSEs through assistance for bank loan processing, bank guarantee charges and product testing.
• Testing support also helps enterprises meet quality, certification and regulatory requirements through recognized laboratories.

Export Promotion Council Membership

• The scheme supports membership of Export Promotion Councils, helping SC/ST enterprises connect with export networks and explore international markets.
• This strengthens their ability to move beyond domestic markets and participate in global trade.

Capacity Building Management Fee Reimbursement

• NSSH promotes managerial and business capabilities through short-term programmes at leading management institutes.
• This helps entrepreneurs improve business strategy, management skills and decision-making, thereby strengthening the long-term competitiveness of their enterprises.

Government-promoted E-commerce Portals

• The scheme facilitates digital market access by supporting membership in Government-promoted platforms such as GeM, e-Khadi, TRIFED, Tribes India and MSME Mart.
• This enables SC/ST MSEs to reach wider markets and participate more effectively in the digital economy.

Business Accelerator Programme (BAP)

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• NSSH also moves beyond basic financial assistance through structured mentoring and industry inputs.
• It focuses on business strategy, pricing, cost and operational efficiency, market positioning, government procurement readiness.
• The aim is to turn SC/ST enterprises from potential suppliers into competitive market participants.

Significance and Challenges

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• The NSSH promotes economic empowerment by encouraging enterprises ownership among historically underrepresented SC/ST communities and broadening their participation in the MSME ecosystem.
• By improving access to finance, skills, technology, mentoring and markets, it helps enterprises build greater capacity and competitiveness.
• Its focus on public procurement provides access to institutional buyers and creates opportunities for sustainable enterprises growth and employment.
• The scheme also supports women’s participation, with women accounting for a significant share of those trained, while its outreach to aspirational districts and different States strengthens regional inclusion.
• Overall, NSSH moves beyond welfare-based assistance towards economic opportunity, entrepreneurship and productive participation, contributing to a more inclusive and competitive MSME ecosystem.

Challenges

• Access to institutional credit remains difficult for small entrepreneurs.
• Limited managerial and technological capabilities can affect competitiveness.
• Certification, testing and compliance can impose additional costs.
• Merely providing procurement preference does not guarantee sustained market competitiveness.
• Need for stronger integration with digital markets, exports and value chains.

Way Forward And Conclusion

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NSSH can be strengthened through better credit access, market linkages, industry mentoring and demand-driven training, along with greater integration into global value chains and exports.

Overall, it shifts support from welfare to economic empowerment, helping SC/ST entrepreneurs become competitive participants in the MSME ecosystem.

UPSC Prelims and Mains Practice Question

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Which of the following best explains the economic rationale behind National SC-ST Hub Scheme?

A. It replaces competitive markets with permanent State support for SC/ST enterprises.

B. It combines capacity building and financial support with assured institutional market opportunities, helping enterprises become more competitive and sustainable.

C. It primarily provides subsidies to reduce the fiscal burden of SC/ST entrepreneurs.

D. It focuses mainly on increasing the number of SC/ST enterprises without directly addressing their market access.

Answer: B

Mains Practice Question

Q) Discuss the role of entrepreneurship and MSMEs in promoting inclusive growth and economic empowerment of vulnerable sections in India. (150 words)

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Police Detention And Arrest Under BNSS Article 22 And Supreme Court Judgments

Source: Indian Express
GS II: Separation of powers between various organs; dispute redressal mechanisms and institutions

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Why in the News?

The detention of Opposition leaders and protesters in New Delhi during protests over alleged irregularities in the Election Commission’s Special Intensive Revision (SIR) exercise has raised questions about the differences between detention and arrest and the limits on police powers.

News in Brief

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• The BNSS, 2023 provides preventive powers to police under Sections 163, 170 and 172 to address potential law-and-order situations.
• Article 22 ensures safeguards for arrested persons, including communication of grounds and production before a Magistrate within 24 hours.
• The issue highlights the need to balance public order, personal liberty and the right to peaceful protest.

Detention vs Arrest

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Arrest	Detention
Formal act of taking a person into custody in connection with an alleged offence.	May involve temporarily stopping/removing a person to prevent a law-and-order problem.
Marks the beginning of criminal proceedings.	May be short-term and may not necessarily involve registration of a criminal case.
Constitutional and statutory safeguards immediately apply.	Police powers must still have a lawful basis and cannot be arbitrary.
In an arrest, grounds of arrest and other safeguards have to be followed.	A detention cannot be used as a substitute for an arrest merely to avoid legal safeguards.

• In practice, the terms are sometimes used interchangeably, but a temporary detention cannot become an informal way of exercising the power of arrest.

What is a Cognizable Offence?

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• A cognizable offence is one in which police can arrest without a warrant.
• Under Section 170 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), preventive action can be taken even before an offence is committed when;
  • a police officer knows of a person’s design to commit a cognizable offence; and
  • The offence cannot otherwise be prevented.
• The provision permits arrest without a Magistrate’s order and without a warrant for preventing such an offence.

Preventive Powers During Protests

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• Most protest-related detentions are justified on the ground of preventing a possible law-and-order problem.

Section 163, BNSS

• Allows authorities to issue prohibitory directions/orders in situations requiring prevention of danger, obstruction or disturbance of public tranquillity.
• During the Delhi protests mentioned in the article, Section 163 was imposed across New Delhi.
• If protesters refuse to disperse or continue activities prohibited by a lawful order, police may use preventive powers to remove them temporarily.

Section 172, BNSS

• This is particularly important in the context of protest-related detention.
• It permits a police officer to detain or remove a person who resists, refuses, ignores or disregards a lawful direction given by the police.
• The person must then be taken before a Magistrate, or in petty cases, released within 24 hours.
• Section 172 is a new provision in the BNSS and has no direct equivalent in the earlier CrPC.

Detention and Preventive Detention are two distinct legal concepts

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• A crucial distinction is between brief police detention and preventive detention under special laws.

Brief police detention

• • Generally connected with immediate maintenance of law and order.
  • May involve taking protesters away from the spot temporarily.
  • Does not automatically mean that a criminal case has been registered.

Preventive detention

• A separate legal mechanism.
• Allows a person to be held without a normal criminal trial under special laws such as the National Security Act (NSA).
• It is subject to specific constitutional and statutory safeguards.

Thus, ordinary detention during a protest should not be casually equated with preventive detention.

Constitutional Safeguards

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• Article 22 of the Constitution provides important protection against arbitrary arrest and detention.
• For an arrested person;
  • Grounds of arrest must be communicated.
  • The person must be produced before a Magistrate within 24 hours of arrest, excluding travel time.
  • The person has the right to consult and be defended by a legal practitioner.
  • Continued custody requires judicial authority.
• The Supreme Court has repeatedly emphasised that written grounds of arrest must be furnished to the arrested person.

Why the Distinction Matters

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• A person may be taken away by police, kept in custody for several hours and later released without a case being registered.
• Although this may technically be described as detention, from the person’s perspective it can feel very similar to an arrest.
• The legal issue is therefore;
  • Can police exercise powers without using them as a substitute for the formal power of arrest?
• Courts have stressed that police powers cannot be exercised casually or arbitrarily.

Supreme Court on Arrest and Police Discretion

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Joginder Kumar v. State of U.P (1994)

• The Court held that the existence of the power to arrest is different from the justification for exercising it.
• Simply because police have the legal power to arrest does not mean that arrest is automatically justified.

Arnesh Kumar v. State of Bihar (2014)

• The Court cautioned against automatic arrests, particularly in offences punishable with imprisonment up to seven years.
• Police must apply their mind and satisfy the statutory requirements before making an arrest.

Mazdoor Kisan Shakti Sangathan v. Union of India (2018)

• The Court recognised that reasonable restrictions may be imposed on protests for public order, but such restrictions should be regulatory rather than effectively eliminating the right to protest.

Checks on Police Power

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• Courts have made it clear that preventive action;
  • cannot be arbitrary
  • must have a lawful basis
  • must be proportionate to the situation
  • must be supported by reasons
  • cannot be used merely to suppress legitimate dissent.
• A prohibitory order itself does not give unlimited power to arrest everyone present.

Key Issues

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• Preventive policing raises a delicate balance between individual liberty and public order, particularly when action is taken before an actual offence occurs.
• Detention should not be used as a means to bypass the safeguards attached to formal arrest.
• At the same time, while the right to peaceful protest is constitutionally protected, reasonable restrictions may be imposed to maintain public order.
• The broad use of preventive powers may also discourage legitimate dissent.
• Therefore, police action should be lawful, necessary and proportionate to the threat involved.

Way Forward and Conclusion

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Preventive powers should be used only when necessary, with clear legal grounds and proper safeguards. Detention should not become a substitute for arrest, and police action must remain lawful, proportionate and subject to oversight.

The BNSS seeks to maintain public order while protecting personal liberty. Its preventive powers must therefore be balanced with the right to peaceful protest, liberty and due process.

UPSC Prelims and Mains Practice Question

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Which one of the following best distinguishes detention from arrest?

A. Detention can never involve physical custody, whereas arrest always does.
B. Arrest is a formal legal act connected with an alleged offence, whereas detention may be a temporary preventive measure.
C. Detention does not require any legal authority.
D. Arrest can only be made with a warrant.

Answer: B

Mains Practice Question

Q) The distinction between detention and arrest is crucial for balancing the State’s power to maintain public order with an individual’s right to personal liberty. Examine the constitutional safeguards against arbitrary arrest and detention in India. ( 150 words)

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RBI’s Monetary Policy And The Imperative Of Price Stability

Source: Indian Express
GS III: Monetary Policy, Inflation and Price Stability

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Why in the News?

The  RBI’s decision to raise the policy rate in its October review reflects a shift in monetary policy priorities.

News in Brief

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• The RBI’s recent rate hike was largely driven by rising upside risks to inflation, even as economic growth remains robust.
• The inflation outlook is being affected by West Asia tensions, crude oil prices, weak monsoon conditions and possible El Niño effects.
• Strong domestic demand is adding a demand-side component to what was earlier largely a supply-driven inflation problem.
• Tighter global monetary conditions, rising advanced-economy bond yields and reduced interest-rate differentials are also influencing India’s policy choices.

Why has the RBI shifted towards tightening?

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West Asia conflict and crude oil prices

• Repeated escalation in West Asia has increased uncertainty in global commodity markets.
• India’s crude basket has risen sharply, with prices estimated around $88-93/barrel, compared with an earlier forecast of $82-87.
• Even if geopolitical tensions ease, prices could remain elevated due to damaged, infrastructure and depleted inventories.
• Higher crude prices can pass through to India via;
  • Petrol and diesel prices
  • Transport costs
  • Input costs
  • Inflation expectations.
• Thus, crude oil remains an important external inflation risk.

Food Inflation and monsoon concerns

• Food inflation remains a major vulnerability because food has a large weight in India’s inflation basket.
  • The 2026 monsoon ended with rainfall 13% below the long-period average.
  • More than 42% of districts were classified as deficient.
  • Uneven spatial distribution and timing of rainfall have increased concerns over agricultural output.
  • Reservoir storage was 12.2% below normal and 20.4% lower than a year earlier as of October 1.
  • Weak monsoons can reduce soil moisture and reservoir levels, affecting the next agricultural cycle.
• However, the relationship between monsoon rainfall and food inflation is not linear.
• Government food reserves and other supply-management measures provide some cushion.

El Nino and global food pressures

• Intensifying El Nino conditions, combined with supply disruptions linked to the West Asian conflict, could push global food prices higher.
• The World Meteorological Organization indicates a high probability of a significant El Nino extending into early 2027.
• India imports more than 55% of its edible-oil requirements, making it vulnerable to global prices and currency movements.
• Consequently, edible-oil inflation could remain elevated.

Inflation is becoming demand-driven too

• Earlier, inflation pressures were largely supply-side.
• Now strong domestic demand is becoming an additional concern.
  • GDP growth in the first quarter exceeded expectations and remained above trend.
  • The RBI raised its growth projection to 7.1% from 6.7% earlier.
  • CRISIL expects around 7% growth.
  • When strong demand coincides with persistent supply shocks, inflation can spread beyond a few commodities.
• Supply-driven inflation occurring alongside strong growth can become more broad-based and persistent.

Global factors influencing RBI policy

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Rising global interest rates

• Advanced economies are witnessing higher bond yields because of persistent inflation and fiscal concerns.
• The spread between US and Indian 10-year government bond yields has narrowed to around 200 basis points, compared with more than 400 bps a few years ago.
• This reduces the relative attractiveness of Indian government securities for foreign investors.
• The US Federal Reserve raised rates 25 bps in September, while markets continued to expect further tightening.
• The European Central Bank and Bank of Japan have also maintained a tightening bias in response to inflation.

India’s liquidity situation

• RBI measures to attract foreign-currency non-resident deposits have strengthened foreign exchange reserves and improved external-sector resilience.
• At the same time, these flows have injected substantial liquidity into the financial system.
• Financial conditions therefore remained relatively easy through August, with liquidity in surplus.
• This creates a temporary mismatch between easy domestic liquidity conditions and the tightening stance warranted by inflation and growth dynamics.

Why price stability matters?

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• Persistent inflation can;
  • Reduce household purchasing power.
  • Hurt poorer households disproportionately.
  • Increase production and borrowing costs.
  • Distort investment and consumption decisions.
  • Reduce the attractiveness of Indian financial assets if inflation remains high.
  • Complete the RBI’s objective of maintaining sustainable growth.
• The concern is particularly important because inflation may broaden from food and fuel into core inflation.

Key Challenges for the RBI

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• External shocks- Escalating West Asian tensions can push up crude oil prices, raising India’s import bill and adding to inflationary pressures.
• Climate risks- Weak monsoon conditions and El Nino can affect agricultural output, putting upward pressure on food prices.
• Strong domestic demand- Resilient economic growth can strengthen demand-side pressures, making inflation more broad-based and persistent.
• Global monetary tightening- Higher interest rates in advanced economies can narrow India-US yield, differentials, affecting capital flows, and financial stability.
• Excess liquidity- Surplus liquidity can ease financial conditions and stimulate demand, potentially adding to inflationary pressures.

Way Forward and Conclusion

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The RBI should pursue a data-driven monetary policy while managing liquidity and monitoring food, fuel and core inflation. Supply-side measures such as better water management, buffer stocks, energy diversification and higher domestic edible-oil production can reduce inflation risks.

With strong growth alongside food, crude oil and global risks, India must control inflation without compromising growth momentum.

UPSC Prelims and Mains Practice Question

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Consider the following factors:

1. Rising crude oil prices
2. Weak monsoon
3. Strong domestic demand
4. Higher global interest rates

Which of the above can influence the RBI’s monetary policy stance?
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

Mains Practice Question

Q) With resilient economic growth but emerging inflationary pressures, the RBI faces a delicate trade-off between supporting growth and safeguarding price stability. Discuss. (250 words)

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