Daily Current Affairs 01 June 2026 – IAS Current Affairs

Current Affairs 01 June 2026 focuses on the Prelims-Mains perspective. Major events are :

The Delisting And The Constitution

Source: Indian Express

GS II: Government Policies and interventions for development in various sectors and issues arising out of their design and implementation.

Overview

1. News in Brief
2. Historical background
3. Arguments related to Delisting
4. Constitutional Provisions

Why in the News?

In Jharkhand, the row over ‘Delisting’ has raised questions about religion and tribal identity, and the constitutional safeguards.

News in Brief

• Recently, the Supreme Court observed that Dalits converting to Christianity or Islam can not continue to claim Scheduled Caste status under Article 341.
• Amid this observation, the Adivasi Hindu community demands delisting from the Scheduled Tribes(ST) category for tribal people who convert to Christianity or Islam.
• The Sarna Community of Adivasis argues that the same should apply to those tribal people who have converted to Hinduism.
• However, Article 342 does not explicitly mention religion to claim ST status.

Historical background

• The origin of the delisting demand can be traced to Baba Kartik Oraon’s efforts.
• In the 1960s, concerns were raised that converted tribes were benefiting from ST’s status.
• Kartik Oraon was a minister in Indira Gandhi’s cabinet and was asked to revise the criteria to include and exclude tribes across India.
• The Parliament did not adopt the proposal.
• Since then, various organisations and groups have periodically demanded the exclusion of converted tribes from the Scheduled Tribes lists.

Arguments related to Delisting

Arguments in favour of Delisting:

• Delisting ensures that the benefits are reaching the most marginalised tribal groups.
• Tribal status is linked to indigenous identity and practices. Conversion may alter these identities, and receiving access to STs status is unjust.
• Conversion may lead to changes in cultural practices. This could affect traditional identity.

Arguments against Delisting:

• Excluding those tribes that are converted may get adversely affect their educational and economic opportunities on reservations.
• Tribal identity is based on ancestry, rather than religious belief.
• Delisting may question or undermine the constitutional safeguards of religious freedom.

Significance of the delisting and the Constitution

• The debate around Delisting highlights the complex relationship between religion and identity.
• It also raises questions on constitutional provisions guaranteeing religious freedom and the balance between social justice and religious beliefs.

Constitutional provisions

Article 341: Empowers the President of India, after consulting with the Governor of a State, by way of public notification, to specify castes, race, or tribes to be classified as Scheduled Castes (SCs).

Article 342: Empowers the President of India, after consulting with the Governor of the State by way of public notification, to specify tribal communities that will be classified as Scheduled Tribes (STs).

Articles 25 to 28: The Right to Freedom of Religion in India.

India-Oman Free Trade Agreement

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

Overview

1. News in Brief
2. Key Highlights of India-Oman Free Trade Agreements (FTA)
3. Significance of India – Oman Free Trade Agreement (FTA)
4. What is Free Trade Agreement (FTA)?
5. Conclusion

Why in the News?

India-Oman Comprehensive Economic Partnership Agreement (CEPA) will come to force from June 1.

News in Brief

• India-Oman Comprehensive Economic Partnership Agreement (CEPA) is India’s 15^th Bilateral trade agreement.
• Provides 100% duty free market access and supports farmers, factories and small businesses.

Key Highlights of India–Oman Free Trade Agreement

• Zero-duty market access on 98% of tariff lines, covering 4% of India’s exports to Oman.
• India opens up 77% of tariff lines for Oman, covering 94% of its total exports to India.
• Annual Indian remittances from Oman: $2 billion.
• More than 6000 Indian enterprises operates in Oman.

Significance of India-Oman Free Trade Agreement (FTA)

Opportunities for MSMEs:

• Some of the sectors under MSMEs such as Iron and steel, textiles, leather, auto components and industrial equipment will get large international demand.
• This will boost production, investment and employment generation.

Job creation:

• Labour-intensive sectors such as textiles and apparel, leather and footwear, food processing, marine products, gems and jewellery, and selective engineering segments are likely to boost production and will accelerate employment growth.
• With tariff barriers removed, these sectors gain international demand for their products.

Benefit farmers and fishermen:

• India gave no tariff concession for major agricultural products to safeguard domestic farmers and it will boost rural incomes.
• India’s National Programme for Organic Production (NPOP) certification was accepted, which provides opportunities to Indian farmers to sell organic outputs to Oman.
• Marine product industry will generate more jobs in fishing, processing, packaging, cold-chain logistics and export operations.

Enhance Pharma exports and traditional medicines:

• CEPA provides for joint research in traditional medicine.
• Indian medicines approved by USFDA, EMA, UK MHRA and TGA will receive marketing authorization in Oman automatically within 90 days.

Strengthen services and mobility:

• Improved market access benefits professionals in education, healthcare, tourism, research and development, environmental services, computer and IT services, medicine, construction, accounting, engineering and consulting.
• Enhanced mobility commitments for Indian professionals and workers.

What is Free Trade Agreement (FTA)?

• It is a treaty signed between two or more countries to reduce or eliminate trade barriers.
• This includes tariffs, quotas and subsidies.
• FTA helps to exchange goods, services and investments across borders easily.
• India has signed 15 Free Trade Agreements (FTAs) and 6 Preferential Trade Agreements (PTAs) with various economic blocs.
• Free Trade Agreements signed in 2026 include; India – European Union FTA, India- New Zealand FTA, an interim trade agreement with United States and CEPA with UK and Oman.

What is Preferential Trade Agreement (PTA)?

• An introductory trade pact that reduces customs duties only to specific products.

Conclusion

India has a deep economic and strategic ties, people-to-people connect with Oman. The Comprehensive Economic Partnership Agreement (CEPA) will transform this relationship and contribute to India’s long-term economic growth through enhanced competitiveness and greater global engagement.

Balancing Rising Inflation and Economic Growth

Source: PIB
GS II: Indian Economy and issues relating to planning, Mobilization of Resources, Growth, Development and Employment. 

Overview

1. News in Brief
2. What is the Repo Rate and inflation?
3. Key highlights

Why in the News?

The Monetary Policy Committee under the Reserve Bank of India will meet this week amid rising inflation.

News in Brief

• Inflation has started increasing quickly, due to higher prices of crude oil and other critical imports, driven by  the war involving Iran and disruptions in supply chain through the Strait of Hormuz.

What is Repo Rate and Reverse Repo Rate?

Repo Rate:

• The interest rate at which India’s central bank (Reserve Bank of India) lends money to commercial banks.
• Banks pledge government securities as collateral to secure these funds.
• When prices rise at a faster rate, the central bank rules out a repo rate hike to control inflation.
• Current repo rate: 5.25%.
• This is maintained to balance economic growth with price stability.

Reverse Repo Rate:

• The interest rate at which India’s central bank (Reserve Bank of India) borrows money from commercial banks.
• Incentivizes banks to deposit funds with the RBI rather than lending to customers, reducing the circulation of money.
• When there is high inflation or excessive money supply, the central bank rules out a reverse repo rate hike to manage liquidity.
• Current Reverse Repo Rate: 3.35%
• This is maintained to absorb excess liquidity in the banking system and to control inflation.

What is Inflation?

• It occurs when prices of goods and services of daily use, such as food, transport, housing, clothing, etc., increase.
• Measured by comparing the prices of a selected basket of goods and services to those in a base year.
• The percentage increase in the selected basket of goods and services represents the inflation rate.
• Example: 1 kg Apple price in 2024(base year) is ₹140. And the same 1 kg Apple price in 2025 is ₹150. This represents an inflation rate of approximately 7.14%.

Key highlights

• Wholesale inflation crossed 8%.
• Retail inflation has already increased to 3.5% and is expected to rise further to 5%.
• Inflation would remain within the RBI’s comfort band of 2-6%.
• RBI’s stance on the rupee’s exchange rate and attracting foreign capital remains crucial.

Challenges in balancing inflation and economic growth:

• The higher wholesale costs will soon lead to higher retail inflation for consumers.
• Monsoon could affect the farm sector and raise food prices.
• Raising interest rates could reduce India’s growth momentum by adversely affecting consumption and investment.
• Current inflation is supply-driven and RBI has limited chance to boost crude oil supplies.

Significance of balancing inflation and economic growth:

• Encourage sustainable production and consumption.
• Balancing inflation and economic growth attracts domestic and foreign investments.
• Preventing increasing inflation protects purchasing power of consumers.
• Facilitating seamless industrial activity and maintaining economic growth supports employment generation.
• Ensures balanced price stability and economic expansion (Macroeconomic Stability).

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