Daily Current Affairs 20 October 2026 – IAS Current Affairs

Current Affairs 20 October 2026 focuses on the Prelims-Mains perspective. Major events are :

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Affidavit Reform In India And The Role Of Self-Declarations

Source: Indian Express
GS II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation

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Why in the News?

An opinion article in Indian Express questions the continued use of affidavits in government services and legal proceedings.

News in Brief

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• Affidavits are sworn written statements used as evidence or to establish facts in administrative and judicial proceedings.
• Obtaining an affidavit often involves stamp paper, notarization or an authorized officer, increasing the cost and time required to access public services.
• Digitally authenticated self-declarations, supported by documentary verification and legal penalties for deliberate falsehood, could replace affidavits in routine matters.
• The issue is whether mandatory swearing adds meaningful legal protection or merely creates procedural hurdles for citizens.

What is Affidavit?

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• An affidavit is a written statement of facts that a person formally swears or affirms to be true before an authorized authority.
• Affidavits are commonly used in:
  • Income, residence and caste-related declarations.
  • Applications for government schemes and welfare benefits.
  • Court proceedings and certain legal disputes.
  • Property, maintenance and other administrative matters.
• The article traces the historical use of affidavits to Act XIV of 1848, which empowered the Supreme Court at Fort William to commission persons to take affidavits and solemn affirmations.
• The original purpose was practical: to enable a sworn statement to be treated as evidence without requiring the person making it to appear in court.
• However, a procedure intended to simplify the administration of justice can become burdensome when it is required even where simpler alternatives are available.

Why is the existing system being questioned?

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Financial and administration burden

•  Citizen may have to purchase stamp paper, locate a notary or magistrate, pay fees and spend time completing formalities.
• These requirements can disproportionately affect economically weaker sections, rural residents and people seeking essential welfare benefits.

Limited verification of facts

• An affidavit does not automatically establish that its contents are true.
• For example, a person declaring that their annual family income is below ₹2 lakh may be required to submit an affidavit without the authority independently verifying income-tax returns, employment records or bank accounts.
• The affidavit establishes that the person has formally asserted the claim, but the underlying fact may still require verification.

Procedural formalities may not prevent fraud

• The possibility of making a false statement does not disappear merely because the statement is sworn.
• Effective verification, the availability of supporting records and meaningful consequences for deliberate falsehood may be more important than the ritual of notarization itself.

Unequal impact on citizens

• A procedural requirement that appears minor to an administrator may become a significant obstacle for a person seeking a scholarship, pension, welfare benefit or legal remedy.
• Therefore, administrative convenience must be assessed from the perspective of citizens as well as government institutions.

Distinguishing Formality from Legal Accountability

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• Requiring an affidavit involves four separate legal questions:
  • Authorship: Who made the statement?
  • Legal admissibility: Can the authority or court legally receive it?
  • Truthfulness: Are the facts stated actually true?
  • Accountability: What happens if the person deliberately makes a false statement?
• These questions should not be treated as interchangeable.
• An affidavit may establish that a statement was formally made, but it does not necessarily prove the truth of every assertion.
• Similarly, verifying a person’s identity does not independently establish the accuracy of the information submitted.

Self-Declaration as an alternative

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• Experts proposes replacing routine sworn affidavits with self-declarations wherever the law permits.
• A self-declaration is a statement in which an individual personally asserts that the information provided is true, without necessarily swearing it before a notary or magistrate.
• Such declarations could be submitted electronically and authenticated through appropriate digital mechanisms.
• Potential advantages include:
  • Reducing paperwork and administrative delays.
  • Lowering the cost of accessing government services.
  • Improving the accessibility of welfare schemes.
  • Promoting digital governance and ease of living.
  • Allowing public authorities to focus on verification rather than procedural formalities.
• However, self-declaration should not be confused with an exemption from legal responsibility.
• A declaration can carry legal consequences if the law expressly provides for them.

International Example: United States

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•  The 28 U.S.C. § 1746, a provision of United States law that permits certain unsworn declarations to be used in place of affidavits when made under penalty of perjury and in the prescribed form.
• The example demonstrates that a formal oath is not the only possible mechanism for establishing legal accountability.
• The broader principle is that the law can distinguish between the requirement to swear a statement and the consequences of deliberately making a false one.
• India can examine such approaches while accounting for its own legal framework and administrative requirements.

India’s Legal and Administrative Developments

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• India’s efforts to simplify affidavit requirements align with its broader shift towards digital governance and easier access to public services.
• The Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) and the Bharatiya Nyaya Sanhita, 2023 (BNS), came into force on 1 July 2024 as part of the country’s criminal law reforms.
• The relevant legal reforms have recognized electronically signed self-declarations, or statements of truth, as alternatives to sworn affidavits in certain proceedings.
• However, this should not be interpreted as the abolition of affidavits across India.
• The availability of a self-declaration depends on the applicable statute, procedural rules and the type of proceeding.
• A general replacement of affidavits would require appropriate legal and procedural changes.

What Should Replace Routine Affidavits?

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• The experts proposes a principle-based approach to affidavit reform.
  Preserve legal consequences, dispense with unnecessary formalities.
• The proposed approach involves the following measures:
  •  Self-declaration by default: Accept self-declarations for routine administrative claims wherever legally permissible.
  • Digital authentication: Use appropriate electronic authentication mechanisms to establish the identity of the declarant.
  • Documentary verification: Verify claims through relevant official records where necessary.
  • Targeted scrutiny: Investigate declarations when inconsistencies, complaints or reasonable grounds for suspicion arise.
  • Accountability for fraud: Provide appropriate legal consequences for deliberate falsehood, subject to applicable law and due process.
  • Retain safeguards where necessary: Continue requiring affidavits when a statute or judicial procedure mandates them or when the nature of the proceeding requires a sworn statement.
• The aim should be to eliminate unnecessary procedures without weakening the integrity of public administration or judicial proceedings.

Implications for Judicial Proceedings

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• Affidavit reform must also consider individuals involved in litigation, including accident victims, maintenance claimants, spouses in matrimonial disputes and people defending property rights.
• Removing unnecessary formalities can improve access to justice, but legal safeguards must remain effective.
• Where a statement is disputed, the appropriate response should depend on the circumstances:
  • If the maker’s identity is in doubt, verify identity.
  • If the underlying facts are disputed, examine the relevant evidence.
  • If the maker needs to be questioned, use the applicable procedure for examination or cross-examination.
  • If deliberate falsehood is established, apply the relevant legal consequences.
• The central argument is that a person’s legal responsibility should not depend exclusively on whether the statement was sworn before an authorized official.

Digital Authentication and Aadhaar

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• The experts suggests that electronically authenticated statements could be recognized by law, with Aadhaar-based authentication serving as one possible means of establishing identity where legally permitted.
• However, identity authentication and factual verification are different.
• Aadhaar-based authentication may help establish that a declaration is associated with a particular identity, but it does not prove that the declared income, residence or other facts are accurate.
• Any digital system should also provide safeguards for:
  • Data privacy and security.
  • Accessibility for citizens with limited digital literacy.
  • Alternative authentication for people who face technological barriers.
  • Opportunities to challenge incorrect records or disputed declarations.
  • Proportionate legal consequences for deliberate fraud.

The Broader Principle: Access to Justice

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• The experts draws on Jeremy Bentham’s Swear Not at All (1817) to question whether compulsory swearing is necessary when truthfulness can be secured through other legal mechanisms.
• The larger argument is that the legal system should prioritize the substance of accountability over procedural rituals.
• An effective reform should make public services more accessible while preserving the ability of courts and administrative authorities to establish facts and punish deliberate deception.

Challenges in implementing Affidavit Reform

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Despite its advantages, replacing affidavits requires careful consideration.

• Risk of fraudulent declarations: Simplification without effective verification could increase false claims.
• Digital divide: Citizens without reliable internet access, digital literacy or suitable devices may face exclusion.
• Identity-related concerns: Authentication systems must address impersonation, errors and misuse of personal information.
• Legal validity: Some affidavits are specifically required by legislation or judicial rules and cannot simply be replaced administratively.
• Evidentiary concerns: Courts must retain appropriate procedures for testing disputed statements.
• Accountability: Penalties must be proportionate and accompanied by due process to avoid discouraging genuine applicants.

Way Forward and Conclusion

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India should replace unnecessary affidavit requirements with self-declaration  wherever legally permissible, supported by reliable verification and penalties for deliberate falsehood. Digital authentication, privacy safeguards and offline alternatives should ensure inclusive access.

Affidavit reform should simplify procedures without weakening accountability, improving administrative efficiency and access to justice while preserving essential legal safeguards.

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IDBI Bank Disinvestment And India’s Governance Reforms

Source: Indian Express
GS II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation; GS III: Indian Economy, Investment models

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Why in the News?

The Union Government’s decision to disinvest its stake in IDBI Bank marks another step towards reducing state ownership in the banking sector and improving the efficiency of financial intermediation.

News in Brief

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• India’s banking system continues to face challenges related to credit allocation, regulatory requirements and the legacy of non-performing assets.
• Digital initiatives such as Aadhaar, UPI and Direct Benefit Transfer have strengthened financial inclusion and welfare delivery.
• GST, the Insolvency and Bankruptcy Code and PRAGATI aim to improve tax administration, credit discipline and project implementation.
• Future reforms require stronger manufacturing, labour-market efficiency, infrastructure, skill development and research capabilities to enhance India’s global competitiveness.

Banking Reforms and Financial Intermediation

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• The proposed disinvestment of the government’s stake in IDBI Bank represents a significant development in India’s banking sector reforms.
• Significance;
  • Private participation can strengthen operational efficiency, governance and competition, depending on the quality of regulation and management.
  • An efficient banking system channels savings towards productive investments and viable businesses.
  • Disinvestment can help the government focus on regulation, financial stability and essential public services.
  • A competitive financial system can improve access to affordable credit for businesses and entrepreneurs.
• However, privatization alone cannot resolve all banking sector problems.
• Effective regulation, depositor protection, financial inclusion and safeguards against excessive risk-taking remain essential.

Challenges in India’s banking system

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• Structural constraints in India’s banking system include; the cash reserve ratio, statutory liquidity requirements and priority-sector lending obligations.
• While these measures serve monetary, financial stability and social objectives, their design must be balanced against the need for efficient credit allocation.
• Historically, political interference in lending, weak credit appraisal and recurring bad loans have affected the performance of parts of India’s banking system.
• Bank nationalization expanded public control over banking, but the experience also demonstrated the importance of professional management and sound lending practices.

India’s Reform Journey Since 1991

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India’s economic reforms have evolved through different phases.

• 1991 economic liberalisation: The balance of economic policy shifted towards greater competition, private participation and integration with the global economy.
• Bank nationalisation: Earlier nationalisation measures expanded public ownership and were intended to widen access to institutional credit.
• Post-reform challenges: Despite liberalisation, structural weaknesses in manufacturing, labour markets and capital allocation continued to constrain productivity.
• Recent reform approach: Greater emphasis has been placed on implementation, digital infrastructure, formalisation, investment and improving the ease of doing business.

The broader lesson is that economic reforms require more than changes in laws or ownership structures. Their success depends on institutional capacity, administrative coordination and sustained implementation.

Governance through consistency and continuity

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• Consistency is an important feature of governance.
• Long-term reforms require stable policy direction and the ability to translate political commitments into administrative outcomes.
• Key examples;
  • Minimum government, maximum governance: The approach emphasizes improving public service delivery while reducing unnecessary administrative barriers.
  • Vibrant Gujarat: Investment-oriented initiatives seek to build investor confidence and promote industrial development.
  • Jan Dhan, Aadhaar and UPI: These initiatives have strengthened financial inclusion and digital transactions.
  • Swachh Bharat Mission: The programme has focused on sanitation, behavioural change and public health.
  • GST, DBT and PRAGATI: These initiatives support tax reform, targeted welfare delivery and the monitoring of infrastructure projects.
• Policy continuity helps build investor confidence, but it must be accompanied by regular evaluation, transparency and corrective action.
• Continuity should not become resistance to necessary policy changes.

Governance through institutional capacity and programme improvement

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The effective governance involves improving inherited programmes rather than replacing them without evaluation.

Important examples

• Aadhaar: Provides a digital identity framework that supports authentication and welfare delivery.
• MGNREGA: Provides a statutory employment guarantee in rural areas and contributes to livelihood security and rural asset creation.
• Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin): Reforms in rural employment guarantees include changes to the guaranteed employment period. The specific provisions and implementation status should be verified before publication.
• Digital public infrastructure: Digital platforms can reduce transaction costs, improve service delivery and facilitate access to public services.

Technology-Driven Governance and Administrative Reforms

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PRAGATI (Pro-Active Governance and Timely Implementation) is a technology-enabled platform that reviews infrastructure projects and public grievances.

• It monitors projects and addresses implementation delays.
• Improves coordination between the Centre, states and district administrations.
• Strengthens accountability through regular reviews.

Effective governance requires centralized monitoring and decentralized implementation.

GST and Cooperative Federalism

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• The Goods and Services Tax (GST) represents a major reform of India’s indirect taxation system.
• It replaced several central and state indirect taxes with a more integrated tax framework, seeking to reduce cascading taxation and facilitate a common national market.

Significance of GST

• Simplifies the indirect tax structure by bringing multiple taxes within a common framework.
• Improves tax compliance through digital reporting and invoice-based mechanisms.
• Facilitates the movement of goods across state borders.
• Can improve revenue mobilization and formalization of economic activity.
• Provides a platform for coordination between the Union and state governments.

Role of the GST Council

• The GST Council is a constitutional body established under Article 279A.
• It provides a forum for the Union and states to make recommendations on GST rates, exemptions and other important matters.
• The Council illustrates cooperative federalism because taxation decisions require consultation between different levels of government.
• However, GST implementation continues to face challenges, including compliance costs for smaller businesses, classification disputes, refund delays and disagreements over revenue distribution.

Fiscal Consolidation and Public Investment

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• Fiscal consolidation refers to measures aimed at reducing the fiscal deficit and stabilizing public debt over time.
• A lower fiscal deficit can help contain government borrowing requirements and support macroeconomic stability.
• However, fiscal consolidation must be balanced against the need for public investment and welfare expenditure.

Capital expenditure as a growth driver

• Capital expenditure creates or improves long-term productive assets, such as roads, railways, ports and public infrastructure.
• Its benefits include:
  • Improving logistics and reducing transportation costs.
  • Encouraging private investment by addressing infrastructure gaps.
  • Generating employment during construction and through economic activity.
  • Improving productivity and the competitiveness of Indian businesses.
• Infrastructure programmes, including the PM Gati Shakti National Master Plan, improve coordination across ministries.
• The quality of public expenditure matters as much as its quantity.
• Productive capital expenditure can strengthen long-term growth, while inefficient spending can increase fiscal pressures without generating proportionate economic benefits.

Manufacturing, Industrial Policy and Competitiveness

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• India must strengthen its manufacturing base to achieve its long-term development objectives.
• Major initiatives;
  • Production Linked Incentive (PLI) schemes: Provide incentives to eligible manufacturers in selected sectors to encourage domestic production and investment.
  • Make in India: Seeks to promote manufacturing, investment and employment.
  • Semiconductor development: Aims to build domestic capabilities in semiconductor manufacturing and related technologies.
  • Infrastructure development: Better transport, logistics and power supply can reduce production costs and improve competitiveness.
  • National Manufacturing Mission: The article refers to manufacturing-related policy initiatives aimed at strengthening domestic industrial capacity.

Why is manufacturing important?

• A stronger manufacturing sector can generate employment, diversify export, reduce excessive dependence on imported goods and support technological development.
• However, incentives alone cannot guarantee competitiveness.
• India also needs reliable electricity, efficient logistics, access to finance, skilled workers, predictable regulations and stronger research and development capabilites.

Labour Reforms and Employment Generation

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• Labor reforms are important for improving productivity, encouraging formal employment and supporting industrial expansion.
• India’s four labour codes cover wages, industrial relations, social security, and occupational safety and working conditions.
• They aim to simplify compliance, promote formal employment and expand social security.
• Informal employment, skill mismatches, low female labour-force participation and the need to balance workers’ rights with business flexibility.

Infrastructure and Energy Transition

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• Infrastructure investment improves connectivity, logistics and economic productivity.
• Renewable energy supports energy security and emissions reduction.
• India faces the challenge of meeting rising energy demand while reducing emissions and ensuring affordable, reliable electricity.
• Key focus areas must include; Expand transport networks, strengthen electricity transmission, develop energy storage and increase renewable energy capacity while ensuring affordable power.

International Trade and India’s Global Engagement

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• Free Trade Agreements (FTAs) can expand exports, attract investment, improve technology access and integrate Indian industries into global value chains.
• Platforms such as the G20 and BRICS support economic cooperation and development discussions.
• Challenges include; Import competition, domestic industrial vulnerabilities and the need to improve export quality and competitiveness.
• India’s external economic strategy must balance greater global integration with domestic industrial development and economic resilience.

Governance and the next phase of reforms

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• First, improving productivity and competitiveness
  • India needs to reduce the cost of doing business through better infrastructure, efficient logistics, reliable power and predictable regulations.
• Second, completing factor-market reforms
  • Land, labour and capital are essential inputs for production.
  • Reforms should improve their efficient allocation while protecting legitimate social and economic interests.
• Third, strengthening the legal and regulatory framework
  • Predictable regulations, faster dispute resolution, effective contract enforcement and investor protection can encourage long-term investment.
• Fourth, expanding manufacturing capacity
  • India must strengthen domestic supply chains, improve industrial infrastructure and encourage innovation to become more competitive in global markets.
• Fifth, improving skills and research
  • Education, vocational training, research and development, and industry–academia collaboration are essential for generating productive employment and supporting technological progress.
  • The central message is that India’s next phase of development will depend on the quality of implementation and the ability to translate economic growth into broad-based improvements in living standards.

Critical analysis

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• India has made progress in digital governance, financial inclusion, taxation, infrastructure and manufacturing.
• However, challenges such as inadequate quality employment, uneven industrial development, limited access to affordable capital, regulatory delays, and skills gaps persist.
• Strengthening institutional accountability, transparency and effective implementation is essential for achieving inclusive and sustainable growth.

Way forward and Conclusion

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India should pursue reforms that balance economic efficiency with social inclusion. Privatization and deregulation must be accompanied by effective regulation, while digital governance should protect privacy and ensure digital accessibility. Fiscal discipline must also preserve essential spending on health, education and social protection.

Ultimately, the success of governance depends not on the number of reforms announced but on their effective implementation and measurable impact on productivity, employment, public service delivery and citizens’ welfare. Sustainable growth requires strong institutions, accountability and inclusive development.

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India-New Zealand Free Trade Agreement (FTA)

Source: Indian Express
GS II: International Relations

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Why in the News?

The India-New Zealand Free Trade Agreement (FTA) came into effect on October 20, 2026, providing zero-duty access for Indian exports to New Zealand.

News in Brief

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• All India goods exports to New Zealand will receive zero-duty access, improving the competitiveness of Indian products in the New Zealand market.
• New Zealand has committed to investing $20 billion in India over the next 15 years.
• The agreement provides dedicated pathways for Indian students, including post-study work opportunities and provisions allowing students to work for at least 20 hours per week during their studies.

Key Highlights of the India-New Zealand FTA

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Market Access for Indian Exports

• The agreement eliminates import duties on Indian goods entering New Zealand, creating opportunities for Indian exporters.
• Labor-intensive sectors expected to benefit include textiles and apparel, leather and footwear, engineering goods, pharmaceuticals and agricultural products.
• Lower trade barriers could help Indian businesses expand their international market presence, generate employment and improve export competitiveness.

Tariff Reductions on New Zealand Goods

• India will reduce tariffs on approximately 95% of New Zealand’s imports, although the extent of tariff reduction may vary across product categories.
• Products expected to benefit from lower tariffs include wine, pharmaceutical products, polymers, aluminium, iron and steel products.
• New Zealand has also received tariff concessions on selected agricultural products, including honey, apples, kiwifruit and albumins, subject to specified conditions and tariff-rate quotas where applicable.

Protection of Sensitive Agricultural Sectors

• India has excluded several sensitive agricultural products from tariff concessions to protect domestic farmers and food security.
• Products kept outside the agreement’s tariff concessions include diary products such as milk, cream, whey, yoghurt and cheese, onions, chickpeas and other pulses, peas and corn, almonds, sugar, artificial honey.
• Protecting sensitive agricultural sectors helps India balance export expansion with the interests of farmers, rural livelihoods and domestic producers.

Tariff-Rate Quota (TRQ)

• A Tariff-Rate Quota (TRQ) permits imports of a specified quantity of a product at a preferential tariff rate, while imports beyond the quota may face a higher tariff.
• The agreement provides for TRQ arrangements for selected agricultural products.
• Products such as apples, kiwifruit, albumins and Manuka honey are covered by specified arrangements.
• TRQs can provide market access while limiting the impact of imports on domestic producers.

Investment Commitment

• New Zealand has committed to investing $20 billion in India over 15 years.
• The investment commitment could support industrial expansion, infrastructure development, employment generation and technology transfer.
• Effective implementation will be important to translate the commitment into actual investment flows.

Cooperation in Agriculture

• The agreement envisages cooperation to improve agricultural productivity and market opportunities.
• Centers of Excellence are proposed for agricultural products such as apples, kiwifruit and honey.
• Such centers could facilitate the exchange of technical knowledge, improved farming practices and better post-harvest management.
• The arrangement could benefit farmers and agribusinesses through capacity-building and improved value-chain integration.

Student Mobility and Work Visas

• The agreement creates dedicated pathways for Indian students and professionals.

Key provisions include:

• Removal of numerical caps on Indian students under the relevant student mobility arrangements.
• A minimum provision of 20 hours of work per week for students during their studies.
• Post-study work opportunities of up to three years for graduates of STEM bachelor’s and master’s programmes.
• Post-study work opportunities of up to four years for doctoral graduates.
• These provisions can improve access to international education, facilitate skill development and strengthen people-to-people ties between the two countries.

Bilateral Trade Relations

• India and New Zealand have relatively modest bilateral trade compared with their respective global trade volumes.
• Bilateral trade in goods and services stood at approximately $2.4 billion.
• India’s goods exports to New Zealand were valued at around $711.1 million, while imports stood at approximately $587.13 million during the period cited in the report.
• The FTA aims to expand these trade flows by reducing trade barriers and improving market access.

Significance and Challenges for India

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• The FTA can diversify India’s export markets, generate employment in labor-intensive sectors, and improve the competitiveness of domestic industries.
• New Zealand’s investment commitment could support industrial development and technology transfer, while agricultural cooperation and student mobility can promote skill development.
• It also strengthens India’s economic partnerships and presence in the Indo-Pacific region.

Challenges

• Key challenges include inadequate logistics, non-tariff barriers, New Zealand’s limited market size and increased competition for domestic industries.
• The investment commitment must translate into actual capital inflows, while MSMEs may struggle to benefit due to financial and technological constraints.

Way Forward and Conclusion

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India should support MSMEs through export credit, better logistics and quality certification, while helping exporters meet new Zealand’s standards. It should monitor sensitive sectors, strengthen agricultural cooperation and ensure that investment commitments translate into actual projects. Transparent visa procedures can further improve student mobility and skill development.

The India-New Zealand FTA can boost exports, employment and investment while strengthening bilateral ties. Its success will depend on effective implementation, wider participation of Indian businesses and adequate protection for vulnerable domestic sectors, making it an instrument for export-led growth and deeper economic cooperation.

 

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