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July 29th Current Affairs

Home / UPSC / Current affairs / UPSC Current Affairs – July 29th

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India's Industrial Output Accelerates to 7.3% in June 2026, Driven by Manufacturing Growth

What is the Index of Industrial Production (IIP)?

The Index of Industrial Production (IIP) is an important economic indicator that measures the monthly growth of industrial production in India. It reflects the performance of the country’s industrial sector and is released every month by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI).

Key Highlights of the News

  • India’s industrial output (IIP) grew by 7.3% in June 2026, the fastest growth in nearly two years.
  • Growth improved from 5.1% in May 2026, indicating stronger industrial activity.
  • The expansion was mainly driven by:
    • Manufacturing: 7.8% growth
    • Electricity: 10.6% growth
    • Mining: Returned to positive growth after contracting in May.
  • Capital goods production increased sharply, indicating higher investment in machinery and infrastructure.
  • Consumer durables such as automobiles and electronics also recorded healthy growth due to rising domestic demand.

What Does IIP Measure?

The IIP measures production in three major sectors:

Sector

Importance

Manufacturing

Largest contributor to IIP

Mining

Extraction of minerals and fuels

Electricity

Power generation and supply

Manufacturing carries the highest weight, so its performance largely determines the overall IIP.

Why Did Industrial Output Increase?

  1. Strong growth in manufacturing industries.
  2. Higher electricity generation due to increased industrial demand.
  3. Rising domestic consumption.
  4. Increased government spending on infrastructure.
  5. Improved production of capital goods, indicating investment confidence.

Why is IIP Important?

  • Indicates the health of India’s industrial sector.
  • Helps assess overall economic growth.
  • Used by the Reserve Bank of India (RBI) while framing monetary policy.
  • Influences investment decisions by businesses.
  • Serves as a leading indicator of GDP growth.

Cauvery Water Regulation Committee Orders Karnataka to Release 3,500 Cusecs of Water to Tamil Nadu

Why in News?

The Cauvery Water Regulation Committee (CWRC) has directed Karnataka to release 3,500 cusecs of Cauvery water per day for 15 days (from July 29) to Tamil Nadu, in accordance with the approved monthly water-sharing schedule. Karnataka has indicated that it may challenge the order due to concerns over deficient rainfall and low reservoir levels.

What is the Cauvery Water Dispute?

The Cauvery River is an interstate river shared by:

  • Karnataka (Upper riparian State)
  • Tamil Nadu (Lower riparian State)
  • Kerala
  • Puducherry

The dispute revolves around the sharing of river water, especially during years of poor monsoon, when available water is insufficient to meet the needs of all basin states.

Background

  • The Cauvery Water Disputes Tribunal (CWDT) was constituted in 1990.
  • In 2007, it gave its final award allocating water among the basin states.
  • In 2018, the Supreme Court slightly modified the allocation and directed the Centre to establish institutions for implementing the award.
  • Following the judgment, the Cauvery Water Management Authority (CWMA) and the Cauvery Water Regulation Committee (CWRC) were established.

What is CWRC?

The Cauvery Water Regulation Committee (CWRC):

  • Functions under the Cauvery Water Management Authority (CWMA).
  • Monitors reservoir levels and rainfall.
  • Recommends and oversees monthly water releases according to the approved schedule.
  • Ensures implementation of the Supreme Court’s directions.

Why is the Issue Sensitive?

  • Karnataka argues that below-normal rainfall has reduced inflows into reservoirs.
  • Tamil Nadu seeks its allocated share for irrigation and drinking water.
  • Water scarcity often increases tensions between the two states, especially during drought years.

Centre Releases Seventh Draft Notification to Declare Ecologically Sensitive Areas (ESA) in the Western Ghats

Why is it in News?

The Union Government has issued the 7th draft notification proposing to declare 56,825 sq. km. of the Western Ghats as an Ecologically Sensitive Area (ESA). The notification seeks public comments before finalization and aims to regulate activities that may harm this globally important biodiversity hotspot.

What is an Ecologically Sensitive Area (ESA)?

An Ecologically Sensitive Area (ESA) is a region identified under the Environment (Protection) Act, 1986, where environmentally harmful activities are either prohibited or strictly regulated to conserve fragile ecosystems.

Objectives

  • Protect biodiversity and wildlife habitats.
  • Prevent ecological degradation.
  • Promote sustainable development.
  • Maintain ecological balance while allowing environmentally compatible livelihoods.

About the Western Ghats

  • Also known as the Sahyadri Hills.
  • Stretch for about 1,600 km along India’s western coast.
  • Pass through Gujarat, Maharashtra, Goa, Karnataka, Kerala, and Tamil Nadu.
  • Recognized as one of the world’s eight “hottest” biodiversity hotspots.
  • A UNESCO World Heritage Site with numerous protected areas.
  •  

Key Features of the 7th Draft ESA Notification

  • Proposes 56,825 sq. km. as ESA across six Western Ghats states.
  • Seeks to prohibit or regulate activities that could damage the fragile ecosystem.
  • Public objections and suggestions will be considered before issuing the final notification.
  • The notification continues a process that has seen six earlier draft notifications since 2014 without a final consensus among states.
  •  

Activities Proposed to be Prohibited

  • New mining and quarrying.
  • Setting up highly polluting industries (Red Category).
  • New thermal power plants.
  • Other environmentally destructive activities.

Activities Generally Permitted (Subject to Regulations)

  • Agriculture and horticulture.
  • Plantations.
  • Eco-tourism.
  • Existing settlements and sustainable livelihood activities.

Background

Gadgil Committee (WGEEP), 2011

  • Headed by Madhav Gadgil.
  • Recommended that about 64% of the Western Ghats be declared ecologically sensitive.
  • Proposed three levels of ecological sensitivity and a dedicated authority for conservation.

Kasturirangan Committee, 2013

    • Recommended a more balanced approach between conservation and development.
    • Suggested protecting about 37% of the Western Ghats as ESA.
    • Its recommendations form the basis of the present draft notifications

Why are States Concerned?

Some states fear that ESA notification may:

  • Restrict infrastructure and development projects.
  • Affect mining and quarrying.
  • Impact local livelihoods and land-use decisions.

The Centre maintains that normal agriculture, plantations, and existing settlements will not be adversely affected, while environmentally destructive activities alone will face restrictions.

India's Rapid Urbanisation Demands Sustainable and Inclusive Urban Planning

Why in News?

The editorial “The Urban Nightmare” highlights the growing challenges faced by Indian cities due to rapid and unplanned urbanisation. It argues that without better planning, cities will struggle with congestion, pollution, housing shortages, flooding, and declining quality of life.

What is Urbanisation?

Urbanisation is the process by which an increasing proportion of the population lives in towns and cities due to:

  • Migration from rural areas.
  • Expansion of existing cities.
  • Growth of industries and services.

According to the 2011 Census, about 31% of India’s population lived in urban areas, and this share is expected to continue rising in the coming decades.

Major Challenges Faced by Indian Cities

  1. Traffic Congestion
  • Increasing number of private vehicles.
  • Inadequate public transport.
  • Loss of productive time and fuel.
  1. Housing Shortage
  • Rising urban population has led to the growth of slums and informal settlements.
  • Affordable housing remains insufficient.
  1. Urban Flooding
  • Encroachment of lakes, wetlands, and natural drains.
  • Poor storm-water drainage systems.
  • Climate change has intensified extreme rainfall events.
  1. Air and Water Pollution
  • Vehicle emissions and industries worsen air quality.
  • Untreated sewage pollutes rivers and lakes.
  1. Poor Civic Infrastructure
  • Inadequate waste management.
  • Water scarcity.
  • Overburdened healthcare and public services.

Government Initiatives

  • Smart Cities Mission – Improve urban infrastructure through technology.
  • AMRUT (Atal Mission for Rejuvenation and Urban Transformation) – Improve water supply, sewerage, and urban infrastructure.
  • PMAY (Urban) – Affordable housing for urban poor.

Swachh Bharat Mission (Urban) – Sanitation and solid waste management.

Way Forward

  • Promote planned urban development with updated master plans.
  • Strengthen public transport and non-motorised transport.
  • Protect wetlands, lakes, and green spaces.
  • Improve drainage and adopt climate-resilient infrastructure.
  • Encourage Transit-Oriented Development (TOD) and mixed land use.
  • Enhance participation of Urban Local Bodies (ULBs) and citizens in city governance.

Iran Balances Engagement with the Taliban While Protecting Its Strategic and Security Interests

Why in News?

The editorial “Iran’s Afghan Balancing Act” examines how Iran is maintaining a cautious relationship with Afghanistan’s Taliban-led government. While Tehran cooperates with the Taliban on trade, border management, and security, it remains wary of terrorism, water disputes, refugee flows, and the treatment of Afghanistan’s Shia minority.

The editorial argues that high economic growth alone is not sufficient to solve India’s unemployment problem. Despite being one of the world’s fastest-growing economies, India continues to face jobless growth, especially among youth and educated graduates. It emphasizes the need for structural reforms that generate quality employment alongside economic expansion.

Why is Afghanistan Important for Iran?

Iran and Afghanistan share:

  • A 921 km-long land border.
  • Deep historical, cultural, and economic ties.
  • Trade and transit links connecting Central and South Asia.
  • Shared concerns over terrorism and narcotics trafficking.

Iran seeks a stable Afghanistan, as instability directly affects its eastern provinces.

Iran's Balancing Strategy

  1. Engagement with the Taliban
  • Iran maintains diplomatic and economic engagement with the Taliban administration.
  • It promotes trade, border connectivity, and regional cooperation.
  • However, Iran has not formally recognized the Taliban government.

2. Security Concerns

Iran is concerned about:

  • The presence of Islamic State–Khorasan Province (ISKP).
  • Cross-border terrorism.
  • Drug trafficking and illegal migration.

3. Water Disputes

  • Iran and Afghanistan have long disagreed over the Helmand River.
  • Iran argues that reduced river flows are affecting the Sistan region and the Hamoun wetlands.
  • Water sharing remains a major source of tension.

4. Refugees and Humanitarian Issues

  • Iran hosts millions of Afghan refugees and migrant workers.
  • Economic pressures and security concerns have increased debates over migration management.

5. Protection of Shia Communities

      • Iran closely monitors the condition of Afghanistan’s Hazara Shia community.
      • It expects the Taliban to ensure their safety and equal rights.

Challenges Before Iran

  • Balancing cooperation without fully endorsing the Taliban.
  • Preventing extremist groups from using Afghan territory.
  • Managing refugee inflows.
  • Resolving transboundary water disputes.
  • Maintaining regional influence amid competition from Pakistan, China, Russia, and Central Asian countries.

Why Does This Matter for India?

  • A stable Afghanistan is important for regional connectivity and security.
  • Instability can strengthen terrorist groups affecting South Asia.
  • Iran remains India’s key partner in projects such as the Chabahar Port, which provides access to Afghanistan and Central Asia while bypassing Pakistan.

 

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