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July14th Current Affairs

Home / UPSC / Current affairs / UPSC Current Affairs – July 14th

Table of Contents

Foreigners Tribunals: Supreme Court Stresses Fair Process in Citizenship Determination

Why in News?

The Supreme Court has set aside the Gauhati High Court’s decisions that had upheld the declaration of 27 persons as foreigners and ordered fresh consideration. The Court held that determining a person’s citizenship or foreigner status must follow a fair, lawful and reasonable procedure, emphasizing that individuals should be given adequate opportunity to produce evidence before Foreigners Tribunals.

What are Foreigners Tribunals (FTs)?

Foreigners Tribunals are quasi-judicial bodies constituted under the Foreigners (Tribunals) Order, 1964, issued under the Foreigners Act, 1946.

Purpose          

  • Determine whether a person is a foreigner or an Indian citizen.
  • Primarily operational in Assam due to issues relating to illegal migration.
  • Hear cases referred by:
    • Assam Border Police,
    • Election Commission (D-Voters),
    • Other competent authorities.

Legal Framework

  • Foreigners Act, 1946
    • Defines a foreigner as a person who is not a citizen of India.
    • Places the burden of proof on the person suspected to be a foreigner (Section 9).
  • Foreigners (Tribunals) Order, 1964
    • Empowers the Central Government to establish Foreigners Tribunals.
  • Citizenship Act, 1955
    • Governs acquisition and determination of Indian citizenship.

Functions of Foreigners Tribunals

  • Determine nationality and citizenship status.
  • Decide cases of suspected illegal migrants.
  • Hear appeals relating to D (Doubtful) Voters in Assam.
  • Recommend whether an individual should be declared an Indian citizen or a foreigner.

Recent Supreme Court Observations

The Supreme Court observed that:           

    • Citizenship determination has serious consequences, including:
      • Detention,
      • Deportation,
      • Separation from family,
      • Risk of statelessness.
    • Therefore, tribunals must:
      • Follow principles of natural justice.
      • Give individuals sufficient opportunity to present documentary evidence.
      • Ensure decisions are based on a fair, lawful and reasonable process rather than procedural lapses.

Importance for Assam

Foreigners Tribunals play a significant role in:

    • Implementation of the National Register of Citizens (NRC) process.
    • Deciding the status of D-Voters.
    • Addressing illegal migration concerns from Bangladesh.
    • Maintaining electoral integrity while safeguarding constitutional rights.

Challenges

  • Large backlog of pending cases.
  • Difficulty in producing decades-old citizenship documents.
  • Concerns regarding procedural fairness.
  • Human rights issues involving detention and possible statelessness.
  • Balancing national security with individual rights.

Retail Inflation Climbs to 4.4%, Breaching RBI's Medium-Term Target

Why in News?

According to the latest Consumer Price Index (CPI) data released by the National Statistics Office (NSO), India’s retail inflation rose to 4.4%, crossing the Reserve Bank of India’s (RBI) medium-term target of 4%. The increase was mainly driven by rising prices of food items such as vegetables, fruits, edible oils, and protein-rich products, raising concerns over inflationary pressures and their impact on monetary policy.

What is Retail Inflation?

Retail inflation measures the change in the prices of goods and services purchased by households over time. It is measured through the Consumer Price Index (CPI) and reflects the cost of living faced by consumers.

Key Highlights of the News

Retail Inflation (CPI): 4.4%

  • Inflation has crossed the RBI’s medium-term target of 4%, though it remains within the permissible tolerance band of 2%–6%.
  • Major contributors to the rise:
    • Increase in prices of vegetables and fruits.
    • Higher edible oil prices.
    • Costlier milk and protein-rich food items.
    • Seasonal supply disruptions and weather-related factors.

RBI's Inflation Target

Under the Flexible Inflation Targeting (FIT) framework:

  • Target Inflation: 4%
  • Tolerance Band: 2%–6%

The Monetary Policy Committee (MPC) of the RBI is mandated to maintain inflation within this range while supporting economic growth.

Note: Although inflation is above the 4% target, it has not breached the upper limit of 6%, so the RBI may assess whether the rise is temporary before altering its policy stance.

Consumer Price Index (CPI)

  • Compiled by the National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI).
  • Measures retail prices paid by consumers.
  • It is the key inflation indicator used by the RBI for monetary policy.

Implications of Rising Inflation

Economic Impact

  • Reduces consumers’ purchasing power.
  • Increases the cost of living.
  • Raises input costs for businesses.
  • Can slow private consumption if prices remain elevated.

Monetary Policy Impact

    • The RBI may adopt a cautious approach toward reducing interest rates.
    • Persistent inflation above the target could lead to tighter monetary policy to contain price pressures.

Factors Influencing Retail Inflation

  • Food prices (largest weight in CPI basket)
  • Fuel and energy costs
  • Global crude oil prices
  • Supply chain disruptions
  • Monsoon performance and agricultural output
  • International commodity prices

India's Trade Deficit Jumps Fourfold in June as Imports Surge

Why is it in News?

India’s merchandise trade deficit widened sharply in June 2026, increasing nearly fourfold compared to the previous month, as imports surged while export growth remained modest. According to data released by the Ministry of Commerce and Industry, higher imports of crude oil, gold, electronics, and industrial raw materials were the primary reasons for the sharp rise in the trade deficit.

Key Highlights of the News

  • Trade deficit increased nearly fourfold in June 2026 compared to May.
  • The widening gap was mainly due to a sharp rise in imports.
  • Crude oil, gold, electronics, and machinery accounted for a significant share of import growth.
  • Merchandise exports recorded only modest growth amid weak global demand.
  • Despite the rise in the merchandise trade deficit, services exports continue to provide support to India’s external sector.

What is Trade Deficit?

A trade deficit occurs when the value of imports exceeds the value of exports during a specific period.

Formula:       

Trade Deficit = Value of Imports − Value of Exports

    • Exports > Imports → Trade Surplus
    • Imports > Exports → Trade Deficit

Why Did the Trade Deficit Rise?

1. Higher Crude Oil Imports

  • India imports nearly 85% of its crude oil requirement.
  • Increased global crude oil prices and higher import volumes pushed up the import bill.

2. Rising Gold Imports

  • Seasonal demand from the jewellery sector and investment demand increased gold imports.

3. Growth in Electronics and Machinery Imports

  • Strong domestic demand for electronic goods and capital equipment contributed to higher imports.

4. Weak Global Demand

    • Slower growth in major economies affected India’s export performance.

Economic Implications

Negative Impacts                   

  • Increases the Current Account Deficit (CAD).
  • Puts downward pressure on the Indian Rupee.
  • Raises dependence on foreign capital inflows.
  • Makes the economy more vulnerable to fluctuations in global commodity prices.

Positive Perspective

  • Higher imports of machinery and capital goods can support industrial production and infrastructure development.
  • Imports of intermediate goods are essential for export-oriented industries.

Government Measures to Address Trade Deficit

  • Promoting exports through the Foreign Trade Policy (FTP) 2023.
  • Expanding Free Trade Agreements (FTAs) to access new markets.
  • Encouraging domestic manufacturing under Make in India and the Production Linked Incentive (PLI) Scheme.
  • Reducing crude oil dependence through renewable energy, ethanol blending, and electric mobility.
  • Improving logistics efficiency through PM Gati Shakti.

Trade Deficit vs Current Account Deficit (CAD)

Trade Deficit

Current Account Deficit (CAD)

Difference between merchandise imports and exports

Includes trade balance, services, remittances, and investment income

Covers only goods

Covers goods, services, primary income, and transfers

Component of the Current Account

Broader indicator of external sector health

 

 

India and Japan Review Defence Cooperation, Lay Groundwork for Next 2+2 Ministerial Dialogue

Why in News?

India and Japan reviewed their expanding defence and security cooperation during high-level bilateral consultations and discussed preparations for the next India–Japan 2+2 Ministerial Dialogue. Both countries reaffirmed their commitment to strengthening defence ties, maritime security, and ensuring a Free, Open and Inclusive Indo-Pacific (FOIP) amid growing geopolitical challenges in the region.

What is the India–Japan 2+2 Dialogue?

The 2+2 Ministerial Dialogue is a strategic dialogue involving:

  • Two Ministers from India
    • External Affairs Minister
    • Defence Minister
  • Two Ministers from Japan
    • Foreign Minister
    • Defence Minister

It serves as the highest institutional mechanism for discussing bilateral strategic, security, and defence cooperation.

India and Japan held their inaugural 2+2 Ministerial Dialogue in 2019.

Objectives of the 2+2 Dialogue

  • Strengthen defence and strategic partnership.
  • Enhance maritime security cooperation.
  • Promote a Free, Open and Inclusive Indo-Pacific (FOIP).
  • Expand defence technology and industrial collaboration.
  • Improve interoperability between the armed forces.
  • Coordinate responses to regional and global security challenges.

Key Highlights of the News

  • Both countries reviewed progress in defence cooperation.
  • Preparations began for the next 2+2 Ministerial Dialogue.
  • Discussions focused on:
    • Maritime security.
    • Defence equipment and technology cooperation.
    • Military exercises.
    • Regional peace and stability.
    • Indo-Pacific security architecture.
  • Both sides reaffirmed their commitment to strengthening the India–Japan Special Strategic and Global Partnership.

India–Japan Defence Cooperation

1. Joint Military Exercises                          

  • Dharma Guardian – Army Exercise.
  • JIMEX (Japan–India Maritime Exercise) – Naval Exercise.
  • Veer Guardian – Air Force Exercise.
  • Participation in the Malabar Naval Exercise along with the United States and Australia.

2. Maritime Security

  • Cooperation in the Indian Ocean Region (IOR).
  • Freedom of navigation.
  • Maritime Domain Awareness (MDA).
  • Humanitarian Assistance and Disaster Relief (HADR).

3. Defence Technology

  • Collaboration in defence equipment and emerging technologies.
  • Strengthening defence industrial cooperation under India’s Atmanirbhar Bharat initiative.

Strategic Importance

For India

  • Strengthens Indo-Pacific strategy.
  • Enhances maritime security in the Indian Ocean.
  • Diversifies defence partnerships.
  • Supports defence modernization.

For Japan                       

    • Promotes regional peace and stability.
    • Ensures secure sea lanes of communication.
    • Balances evolving security challenges in the Indo-Pacific.
    • Deepens partnership with a key democratic partner.

India–Japan Comprehensive Relationship

The bilateral relationship extends beyond defence to include:

    • Economic cooperation.
    • High-speed rail (Mumbai–Ahmedabad Bullet Train Project).
    • Supply Chain Resilience Initiative (SCRI).
    • Clean energy and green hydrogen.
    • Semiconductor and critical technology cooperation.
    • Infrastructure development.
    • Digital partnership.

Global Liveability Index 2026: Indian Cities Continue to Lag in Quality of Urban Living

Why in News?

The Economist Intelligence Unit (EIU) released the Global Liveability Index 2026, in which New Delhi ranked 120th out of 173 cities, followed by Mumbai (121), Chennai (123), and Bengaluru (127). Copenhagen (Denmark) retained its position as the world’s most liveable city for the second consecutive year.

What is the Global Liveability Index?

The Global Liveability Index is an annual ranking published by the Economist Intelligence Unit (EIU) that assesses the quality of life in major cities across the world.

Objectives

  • Assess living conditions in global cities.
  • Help governments, businesses, and policymakers understand urban strengths and weaknesses.
  • Provide a comparative assessment of urban quality of life.

Parameters of the Index

The index evaluates 173 cities across 30 indicators grouped into five categories:

              Category             

Weight

Stability

25%

Healthcare

20%

Culture & Environment

25%

Education

10%

Infrastructure

20%

Top 10 Most Liveable Cities (2026)

Rank

City

Country

1

Copenhagen

Denmark

2

Vienna

Austria

3

Melbourne

Australia

4

Sydney

Australia

5

Zurich

Switzerland

6

Geneva

Switzerland

7

Osaka

Japan

8

Adelaide

Australia

9

Vancouver

Canada

10

Tokyo

Japan

                                 

Performance of Indian Cities

City

Rank

New Delhi

120

Mumbai

121

Chennai

123

Bengaluru

127

No Indian city featured in the top 100, reflecting persistent challenges in urban governance, infrastructure, environmental quality, and public services.

Why Do Indian Cities Rank Lower?

  • Traffic congestion and inadequate public transport.
  • Air pollution and environmental degradation.
  • Pressure on urban infrastructure due to rapid urbanisation.
  • Housing shortages and informal settlements.
  • Public safety and governance challenges.
  • Limited access to quality healthcare and urban amenities.
  •  

Significance for India

The rankings highlight the need to:

  • Improve urban planning and governance.
  • Invest in sustainable infrastructure.
  • Enhance public transport systems.
  • Strengthen healthcare and education facilities.
  • Promote smart and climate-resilient cities.
  • Improve environmental quality and waste management.

Government initiatives such as the Smart Cities Mission, AMRUT, Swachh Bharat Mission, and PM Gati Shakti aim to address many of these challenges.

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