Daily Current Affairs 15 July 2026 – IAS Current Affairs

Current Affairs 15 July 2026 focuses on the Prelims-Mains perspective. Major events are :

Rising Inflation In India: Reasons, Impact And RBI Measures

Source: Indian Express
GS III: Indian Economy and issues relating to planning, mobilisation of resources, growth, development and employment.

Overview

1. News in Brief
2. Inflation
3. Reasons for Rising Inflation
4. Impact of Rising Inflation
5. Challenges Before the RBI
6. How RBI is Responding

Why in the News?

Retail inflation (CPI) rose from 3.93% in May to 4.38% in June, primarily driven by higher food, transport, and restaurant prices.

News in Brief

• Food inflation increased to 5.32%, led by rising vegetable and spice prices, while weak monsoon conditions and lower kharif sowing raised concerns over future price pressures.
• Fuel price hikes and rising global crude oil prices, amid West Asia tensions, added to transport and services inflation, increasing overall inflationary risks.
• The RBI faces the challenge of balancing inflation control with economic growth as it prepares for its upcoming Monetary Policy Committee (MPC) meeting.

Inflation

• Inflation is the sustained rise in the general price level of goods and services over time, reducing the purchasing power of money.

Types of Inflation

• Demand-pull- Occurs when aggregate demand for goods and services outpaces aggregate supply, often described as “too much money chasing too few goods”.
• Cost-push – Driven by an increase in the cost of production (wages, raw materials), suppliers “push” the higher costs onto consumers.
• Core – Calculated by excluding highly volatile items (usually food and fuel) from the headline figure to reflect the long-term trend in price changes.
• Headline-  The total inflation within an economy, including all commodities in the price index, even volatile items like food and energy.
• In India, inflation is measured using the Consumer Price Index (CPI), Wholesale Price Index (WPI), and GDP Deflator.
• While CPI reflects retail prices and guides monetary policy, WPI tracks wholesale prices and excludes services.

Inflation Targeting in India

• India follows a Flexible Inflation Targeting (FIT) framework under the RBI Act, 1934 (amended in 2016).
  • Historically, when domestic consumption demand pushes inflation up, the RBI raises the repo rate.
  • This makes borrowing costlier for commercial banks, subsequently raising interest rates for car, home, and business loans.
  • Cooling Demand: By making loans more expensive, consumer spending and business investments moderate, which brings down aggregate demand and helps lower inflation
• The Reserve Bank of India aims to maintain inflation at 4% with a tolerance band of ±2%.
• Role of Government and RBI- The RBI uses monetary policy tools to achieve price stability, while the Government supports inflation management through fiscal measures, supply-side interventions, and food management policies.

Reasons for Rising Inflation

• Adverse weather, including heatwaves, an uneven monsoon, and El Niño,  severely impacted domestic agricultural output.
• Prices for cereals, pulses, dairy, and perishables (like onions, tomatoes, and capsicum) spiked sharply, making food inflation the primary catalyst.
• Global geopolitical tensions in West Asia have driven up crude petroleum and input costs, which directly hit retail transport and energy prices, leading to imported inflation.
• WPI pressures from higher raw material and transportation costs gradually passed through to CPI inflation.

Impact of Rising Inflation

• Economic
  • Reduces purchasing power.
  • Increases cost of living.
  • Lowers household savings.
  • Raises business input costs.
  • Creates investment uncertainty.
• Fiscal
  • Increases subsidy burden.
  • Raises government expenditure.
• Monetary
  • Limits RBI’s scope for interest rate cuts.
  • Tightens liquidity conditions.
• Social
  • Disproportionately affects poor households.
  • Increases food insecurity.
  • Widens income inequality.

Challenges Before the RBI

• Balancing inflation control with economic growth.
• Uncertain monsoon and agricultural output.
• Volatility in global crude oil prices.
• Geopolitical uncertainties.
• Evolving inflation expectations.
• Spillover effects of monetary policy decisions by the US Federal Reserve and European Central Bank (ECB).

How RBI is Responding

• Maintaining the Status Quo
  • Instead of immediately raising interest rates, the Monetary Policy Committee (MPC) has chosen to hold the repo rate steady.
  • This allows the central bank to avoid choking economic growth while treating the recent spikes as temporary supply shocks.
• Liquidity Management
  • The RBI uses tools like the Standing Deposit Facility (SDF) to encourage banks to park excess funds directly with the central bank.
  • This absorbs surplus cash from the system without needing to formally hike benchmark borrowing rates.
• Forex Interventions
  • To support the rupee and manage imported inflation, the RBI utilizes its foreign exchange reserves and introduces measures designed to attract foreign capital inflows

Way Forward and Conclusion

• Strengthen agricultural resilience, improve food supply chains, and reduce dependence on imported crude through renewable energy and ethanol blending to address structural drivers of inflation.
• Ensure coordinated monetary and fiscal policies, supported by better inflation forecasting and timely interventions, to maintain price stability and sustain long-term economic growth.

Key Takeaways

UPSC Prelims and Mains Practice Question

With reference to inflation and the Reserve Bank of India’s Monetary Policy Committee (MPC), consider the following statements:

1. The RBI follows a Flexible Inflation Targeting framework with a target of 4% inflation, with a tolerance band of ±2%.
2. Food inflation is measured using the Wholesale Price Index (WPI).
3. The Monetary Policy Committee consists of six members, with the RBI Governor serving as its Chairperson.
4. A rise in crude oil prices can contribute to inflation by increasing transport and production costs.

Which of the statements given above are correct?

(a) 1, 3 and 4 only
(b) 1 and 2 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4

Answer: (a) 1, 3 and 4 only

Mains Practice Question

Q. Food inflation and global crude oil price volatility continue to influence India’s inflation trajectory. Analyse their impact on monetary policy and suggest measures to ensure sustainable price stability and economic growth. (15 Marks , 250 Words)

Index Of Services Production (ISP)

Source: PIB
GS III: Indian Economy

Overview

1. News in Brief
2. Index of Services Production (ISP)
3. Significance of the ISP
4. Challenges
5. Way Forward & Conclusion

Why in the News?

The Ministry of Statistics and Programme Implementation (MoSPI) released the first trial Index of Services Production (ISP) for April 2026, covering 19 service sub-sectors representing around 60% of the services sector.

News in Brief

• The ISP has been introduced to address the gap in economic measurement, as the Index of Industrial Production (IIP) covers only the industrial sector.
• It provides a high-frequency measure of services sector output, enabling timely assessment of economic activity.
• The index strengthens economic monitoring, national accounts estimation, and evidence-based policymaking.

Index of Services Production (ISP)

• The Index of Services Production (ISP) is India’s first high-frequency indicator to measure the performance of the services sector.
• Key Features
  • It is a monthly macroeconomic indicator that measures short-term real output changes in India’s formal services sector.
  • It is a weighted volume index based on Gross Value Added (GVA) that maps production across formal service industries relative to a specific base period.
• Objective
  • To provide high-frequency economic data
  • Strengthen short-term macroeconomic indicators
  • Support evidence-based policy and business cycle analysis.
• Need for ISP
  • The services sector accounts for over 50% of India’s Gross Value Added (GVA).
  • Historically, India did not have a high-frequency indicator for the services sector, while the IIP was limited to manufacturing, mining, and electricity.
• Base Year (2024–25)– The index is calibrated to the 2024–25 base year, calculated via a fixed-weight Laspeyres volume index.
• Nodal Ministry (MoSPI)– It is developed and compiled by the Ministry of Statistics and Programme Implementation (MoSPI).
• Methodology, Data Sources & Sectoral Coverage
  • The ISP measures the real volume of services by removing the effects of inflation using Consumer Price Index and Wholesale Price Index as deflators.
    • A price deflator transforms “value-based” (nominal) data into “volume-based” (real) data, providing accurate measurement of actual changes over time.
  • It is compiled using GST data, administrative records, and ASISSE.
    • GST data will be used for the first time in statistical applications.
  • The index initially covers major formal service sectors, while government-dominated and non-market activities are excluded due to limited market-based and high-frequency data.

Significance of the ISP

• Fills a Major Data Gap
  • Policymakers previously lacked a structured, monthly volume indicator to track short-term service growth.
  • The ISP bridges this gap, preventing reliance on delayed quarterly GDP estimates
• Measures Real Output
  • Instead of tracking nominal revenues, the ISP measures the actual volume of services produced, thereby complementing the Index of Industrial Production (IIP).
• Improves Evidence-Based Policymaking
  • By providing high-frequency data, the ISP allows economists and government bodies to monitor economic trends, forecast growth, and make timely interventions.
• Utilizes Modern Digital Footprints
  • The index relies on high-quality administrative data and outward GST supplies, which improves the reliability of national accounts estimation without creating new reporting burdens for businesses.
• Tracks Vital Sub-Sectors
  • The inaugural trial series (base year 2024–25) covers 19 sub-sectors, capturing dynamic parts of the economy such as accommodation, food services, and retail trade.

Challenges

• The ISP primarily covers the formal services sector, limiting representation of informal activities.
• Dependence on multiple data sources may affect consistency and timely publication.
• Developing sector-specific deflators remains challenging for accurate measurement of real output.
• Several service sub-sectors are currently excluded due to data limitations.
• Monthly estimates may undergo frequent revisions as more comprehensive data becomes available.

Way Forward & Conclusion

Expand the ISP’s coverage, strengthen data quality through digital databases and better sector specific price deflators, and continuously refine its methodology in line with international best practices.

The Index of Services Production (ISP) is a significant step towards modernising India’s statistical framework. By providing timely insights into the country’s largest economic sector, it will enhance economic monitoring, strengthen evidence-based policymaking, and support India’s journey towards a Viksit Bharat.

Key Takeaways

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UPSC Prelims and Mains Practice Question

With reference to the Index of Services Production (ISP), consider the following statements:

1. It is India’s first high-frequency indicator dedicated to measuring the output of the services sector.
2. It is released by the Ministry of Statistics and Programme Implementation (MoSPI).
3. The base year for the Index of Services Production is 2024–25.
4. The Index of Industrial Production (IIP) comprehensively measures both industrial and services sector output.

Which of the statements given above are correct?

A. 1, 2 and 3 only
B. 1 and 4 only
C. 2, 3 and 4 only
D. 1, 2, 3 and 4

Answer: A

Mains Practice Question

Q. “The introduction of the Index of Services Production (ISP) marks a significant step in strengthening India’s economic statistics and evidence-based policymaking.” Discuss its significance, key features, and challenges. (150 words)

India–Australia Civil Nuclear Cooperation

Source: PIB
GS II: Bilateral , Regional and Global Groupings and Agreements involving India or affecting India’s interests, GS III: Energy Security, Science & Technology, Environment.

Overview

1. News in Brief
2. Background
3. Key Highlights
4. Significance for India

Why in the News?

India and Australia finalised the Administrative Arrangement under the India–Australia Civil Nuclear Cooperation Agreement during the Third India–Australia Annual Summit (9 July 2026).

News in Brief

• The arrangement enables long-term exports of Australian uranium to India for peaceful civilian nuclear use under IAEA safeguards.
• It strengthens India’s energy security by ensuring a reliable fuel supply for its expanding nuclear power programme and supporting the Nuclear Energy Mission.
• The agreement deepens the India–Australia Comprehensive Strategic Partnership while advancing India’s clean energy transition and net-zero goals.

Background

• Historically, Australia maintained a strict policy against exporting uranium to nations that are non-signatories to the Nuclear Non-Proliferation Treaty (NPT), which restricted trade with India.
• Following the landmark 2008 India–US Civil Nuclear Agreement and India’s subsequent Nuclear Suppliers Group (NSG) waiver, Australia lifted its export ban in 2012.
• India and Australia signed the Civil Nuclear Cooperation Agreement in September 2014, which entered into force in November 2015.
• Between 2018 and the 2020s, Australia exported limited, closely monitored trial shipments (~300 tonnes) of uranium to India to build regulatory trust and evaluate bilateral verification mechanisms.
• The 2026 Breakthrough- Finalized during the Third India–Australia Annual Summit in Melbourne, the new Administrative Arrangement established concrete procedures, paving the way for larger commercial deliveries.

Key Highlights

• Operationalized Agreement- Following the initial 2014 agreement, the new Administrative Arrangement establishes the procedures and long-term framework for industry collaboration and government oversight.
• IAEA Safeguards– All Australian uranium supplied to India will be exclusively used for peaceful purposes and will remain under strict International Atomic Energy Agency safeguards.
• Energy Security– With Australia holding over one-third of the world’s uranium reserves, the agreement bolsters India’s long-term energy security and directly supports its goals under the targeted Nuclear Energy Mission.
• NSG membership–  Australia continuously reaffirmed its strong support for India’s membership in the Nuclear Suppliers Group (NSG).
  • A 48-member nuclear export control regime that regulates global nuclear trade; India seeks membership with strong and consistent support from Australia.

Impact on India

• Economic Growth- Reliable clean electricity will support manufacturing, digital infrastructure, and industrial expansion.
• Nuclear Power Expansion- The agreement reinforces the momentum of India’s nuclear programme, reflected in milestones such as the PFBR at Kalpakkam, while ensuring long-term fuel security for sustained expansion.
• Investment & Industry Confidence- Stable fuel availability encourages greater participation by developers, private companies, and investors in the nuclear sector.
• Stronger Bilateral Cooperation- The agreement broadens India–Australia collaboration in energy, technology, and strategic sectors.

Significance for India

• Strengthens Energy Security
  • Ensures a reliable long-term uranium supply for India’s expanding nuclear power programme, supporting uninterrupted baseload electricity and grid stability.
• Supports Clean Energy Transition
  • Expands the share of low-carbon nuclear power, reducing dependence on fossil fuels while meeting growing industrial and digital energy demand.
• Advances Climate Goals
  • Facilitates the expansion of non-fossil energy capacity, contributing to India’s Nationally Determined Contributions (NDCs) and Net Zero target by 2070.
• Enhances Strategic Partnership
  • Deepens India–Australia cooperation in energy, trade, defence, critical minerals, technology, and the Indo-Pacific, while reinforcing confidence in India’s responsible nuclear record.

Conclusion

The India–Australia Civil Nuclear Cooperation marks a significant step towards strengthening India’s energy security, clean energy transition, and strategic partnership, supporting its vision of sustainable growth and Net Zero by 2070.

Key Takeaways

UPSC Prelims and Mains Practice Question

With reference to the India–Australia Civil Nuclear Cooperation, consider the following statements:

1. The Administrative Arrangement enables long-term exports of Australian uranium to India for peaceful purposes under IAEA safeguards.
2. Australia is the world’s largest producer of uranium.
3. India’s three-stage nuclear programme ultimately aims to utilise thorium as the primary nuclear fuel.

Which of the statements given above are correct?

(a) 1 and 3 only
(b) 1, 2 and 3 only
(c) 2 and 3 only
(d) 2 only

Answer: (a) 1 and 3 only

Mains Practice Question

Q. Discuss the significance of the India–Australia Civil Nuclear Cooperation Agreement for India’s energy security and clean energy transition. (10 Marks, 150 Words)

Guru Ravidas and the Ravidassia Community

Source: Indian Express
GS I: Salient features of Indian Society, Diversity of India, Social Empowerment, GS-II: Fundamental Rights, Governance

Overview

1. News in Brief
2. Guru Ravidas
3. Ravidassia Religion: Origin And History

Why in the News?

The Ravidassia community has renewed its demand for a separate religion category in the upcoming Census.

News in Brief

• Thousands of members of the Ravidassia community gathered at Phagwara, Punjab, and renewed their long-standing demand for a separate “Ravidassia religion” category in the Census.
• The programme, organized by the Akhil Bharatiya Ravidassia Dharam Sangathan, was attended by the head of Dera Sachkhand Ballan, the community’s largest religious institution.
• The gathering submitted a memorandum to the President, Prime Minister, and Union Home Minister, reviving the debate over separate religious recognition ahead of the Punjab Assembly elections.

Guru Ravidas

Guru Ravidas (also known as Raidas) was an influential 15th to 16th-century Indian mystic poet-saint, social reformer, and spiritual leader who played a pivotal role in the northern Indian Bhakti movement.

Key Teachings & Philosophy

• Egalitarian Society– He envisioned Begampura—a utopian “city without sorrow” free from grief, taxes, fear, and caste-based discrimination.
• Nirguna Bhakti– He rejected external rituals, idol worship, and rigid religious hierarchies in favour of inner purity and direct personal devotion.
• Spiritual Equality– Belonging to a marginalized leather-working community, he broke caste barriers by proving that spiritual enlightenment depends on devotion, not birth or social status.

Literary & Religious Legacy

• Sikhism Integration– A profound testament to his universal relevance is the inclusion of 41 of his devotional hymns and verses in the Guru Granth Sahib, the holy scripture of Sikhism.
• Prominent Disciples– The iconic Rajput princess and mystic poetess Meera Bai revered Guru Ravidas as her spiritual guide.
• Ravidassia Religion– His philosophy forms the bedrock of the 21st-century Ravidassia religion, which follows the holy book Amrit Bani Guru Ravidass.
• Panch Vani-  Many of his poems are also preserved in the Panchvani tradition of the Hindu Dadupanthi sect.
• Annual Commemoration– His birth anniversary is celebrated annually as Guru Ravidas Jayanti on Magh Purnima (the full moon day of the January–February ).

Ravidassia Religion: Origin And History

• The Ravidassia religion is a distinct faith centered around the teachings of the 15th-century mystic poet-saint Guru Ravidas.
• Followers advocate for Begampura, an egalitarian society free of sorrow, fear, and caste divisions
• Emphasises equality, social justice, dignity, and devotion.
• While rooted in the broader Sikh tradition, the Ravidassia identity emerged as an independent faith following attacks on spiritual leaders at the Dera Sachkhand Ballan dera (temple) in Vienna in 2009.
• Following this tragic event  the community formally established its own identity as  Ravidassia in 2010.

Key Takeaways

UPSC Prelims and Mains Practice Question

Consider the following statements regarding the Ravidassia community:

1. The Ravidassia religion traces its origins to the teachings of Guru Ravidas, a Bhakti saint.
2. The demand for a separate religion category seeks official recognition of Ravidassia as a distinct religion in the Census.
3. The Dera Sachkhand Ballan is a major religious institution associated with the Ravidassia community.

Which of the statements given above are correct?

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

Answer: A

Mains Practice Question

Q. “Identity-based demands in a diverse society pose both opportunities and challenges for democratic governance.” Discuss.

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