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May 26th Current Affairs

Home / UPSC / Current affairs / UPSC Current Affairs – May 26

Table of Contents

Abraham Accords Return to Global Focus Amid New U.S. Push in West Asia

The Abraham Accords have once again become important in international politics after former U.S. President Donald Trump called for a wider expansion of the agreement as part of a possible peace understanding with Iran and broader West Asian diplomacy.

What are the Abraham Accords?

The Abraham Accords are a set of agreements signed in 2020 under U.S. mediation to normalize diplomatic relations between Israel and several Arab nations.

Countries that joined initially:

  • United Arab Emirates (UAE)
  • Bahrain
  • Morocco
  • Sudan

These agreements marked a historic shift because many Arab nations had earlier refused formal ties with Israel until the Palestinian issue was resolved.

Why is it in News?

The issue is back in the spotlight because the U.S. is reportedly encouraging more countries especially Saudi Arabia and other Muslim-majority nations  to join the Abraham Accords framework as part of a larger regional peace strategy involving Iran.

However, many countries are hesitant due to:

  • The ongoing Gaza conflict
  • Rising tensions in West Asia
  • Continued concerns over Palestinian statehood

Pakistan has also reiterated that it will not recognize Israel until an independent Palestinian state is established.

Objectives of the Abraham Accords

  • Normalize Israel-Arab relations
  • Increase trade and investment cooperation
  • Strengthen defence and intelligence partnerships
  • Improve regional stability in West Asia
  • Build a strategic bloc against Iranian influence

Significance for India

India has strong relations with both Israel and Arab countries. The Abraham Accords are important for India because they:

  • Improve regional stability in West Asia
  • Support India’s energy security
  • Boost economic and technological cooperation
  • Strengthen initiatives like the India–Middle East–Europe Economic Corridor (IMEC)
  • Help India balance ties with Israel, UAE, Saudi Arabia, and the U.S.

Challenges and Concerns

  • Palestinian issue remains unresolved
  • Public opinion in many Arab countries opposes normalization during the Gaza conflict
  • Iran views the agreements as anti-Iran strategic grouping
  • Risk of increasing geopolitical polarization in West Asia

Finance Commission Transfers and Equity Debate Back in Focus

The issue of Finance Commission transfers has returned to national debate after concerns were raised that southern States may receive a lower share of central tax revenues due to their better performance in population control and economic indicators.

What is the Finance Commission?

The Finance Commission of India is a constitutional body established under Article 280 of the Indian Constitution.

It is appointed by the President every five years to recommend:

  • Distribution of tax revenue between the Centre and States
  • Grants-in-aid to States
  • Measures to improve fiscal balance

The current recommendations are based on the 15th Finance Commission

What is the Current Issue?

Southern States such as:

  • Karnataka
  • Tamil Nadu
  • Kerala
  • Telangana

have argued that they are being “penalized” in tax devolution despite:

  • Better population control
  • Higher tax contribution
  • Better governance and development indicators

The concern arises because the Finance Commission gives significant weight to population figures, especially the 2011 Census, while deciding how central taxes are distributed among States.

States with larger populations and lower income levels often receive a larger share.

Why is this Debate Important?

Southern States argue that:

  • They invested heavily in education, healthcare, and family planning.
  • Their success in reducing population growth should not reduce their share of funds.
  • Fiscal transfers should reward efficiency and governance, not only population size.

On the other hand, poorer and more populous States argue that:

  • They require greater financial support for development.
  • Fiscal equalization is necessary to reduce regional inequality.

Key Terms for UPSC

Tax Devolution

The sharing of Union tax revenue with States.

Horizontal Distribution

Distribution of funds among States.

Vertical Distribution             

Distribution between Centre and States.

Criteria Used by the Finance Commission

The 15th Finance Commission used factors such as:

  • Income distance
  • Population (2011 Census)
  • Area
  • Forest and ecology
  • Demographic performance
  • Tax effort

Challenges

  • Balancing equity and efficiency
  • Addressing regional disparities
  • Preventing political tensions between States

Ensuring fair resource allocation

BHAVYA Scheme: Centre Launches Mega Industrial Parks Mission to Boost Manufacturing

What is BHAVYA?

Department for Promotion of Industry and Internal Trade launched the BHAVYA Scheme (Bharat Audyogik Vikas Yojna) to establish 100 plug-and-play industrial parks across the country. The scheme has an outlay of ₹33,660 crore and will be implemented from 2026–27 to 2031–32.

Key Objectives

  • Develop world-class industrial infrastructure
  • Promote Make in India and Aatmanirbhar Bharat
  • Increase manufacturing competitiveness
  • Attract domestic and foreign investment

Generate large-scale employment

Major Features of the Scheme

    • Plug-and-Play Industrial Parks

      Industries will get:

      • Pre-approved land
      • Ready infrastructure
      • Faster clearances
      • Integrated logistics support

      This reduces delays in setting up factories.

      Scale of Development             

      • Around 100 industrial parks
      • Park size: 100–1000 acres
      • Smaller relaxation for hilly and northeastern regions

      Financial Support

      • Up to ₹1 crore per acre central assistance
      • Support for roads, utilities, ICT systems, drainage, testing labs, warehouses, and worker housing.

      Implementation Agency

      The scheme will be implemented by:

      • National Industrial Corridor Development Corporation
        under the DPIIT, Ministry of Commerce and Industry.

Why is the Scheme Important?

    • Boost to Manufacturing

      India aims to become a global manufacturing hub similar to China and Vietnam.

      Employment Generation

      The scheme is expected to create:

      • Direct industrial jobs
      • Indirect jobs in logistics and services

      Balanced Regional Development

      Industrial parks across different States can reduce regional imbalance and improve industrialization in backward regions.

      Ease of Doing Business

      Single-window clearances and ready infrastructure reduce bureaucratic delays.

Challenges

  • Land acquisition issues
  • Environmental concerns
  • Need for strong state cooperation
  • Ensuring infrastructure connectivity
  • Competition from global manufacturing hubs

India-Australia Relations: Bridging the Trade and Trust Barrier

India and Australia are working to deepen their partnership beyond traditional diplomacy by expanding cooperation in trade, defence, critical minerals, education, and Indo-Pacific security. The issue gained attention during the recent Quad Foreign Ministers’ meeting and discussions on a broader India-Australia economic partnership.

Why is it in News?

The discussion revolves around:

  • Expanding the India–Australia Economic Cooperation and Trade Agreement (ECTA)
  • Negotiations for a Comprehensive Economic Cooperation Agreement (CECA)
  • Growing defence and strategic cooperation under the Quad framework

Building greater “trust” in supply chains, technology, and critical minerals partnerships

Background of India-Australia Relations

India and Australia upgraded their ties to a Comprehensive Strategic Partnership in 2020.

Key areas of cooperation:              

  • Trade and investment
  • Maritime security
  • Defence exercises
  • Critical minerals
  • Education and technology
  • Indo-Pacific strategy

Both countries are members of:       

  • Quadrilateral Security Dialogue
  • World Trade Organization
  • G20

Economic Cooperation

    • ECTA Agreement

      The India–Australia Economic Cooperation and Trade Agreement (ECTA) came into force in 2022.

      Benefits:        

      • Reduced tariffs on goods
      • Better market access
      • Increased mobility for students and professionals
      • Boost to exports and investment

      CECA Negotiations

      Both countries are now negotiating a more comprehensive trade agreement called CECA.

      Focus areas:

      • Services trade
      • Digital economy
      • Investment protection
      • Supply chain resilience

Strategic and Defence Importance

India and Australia share concerns regarding:

  • China’s growing influence in the Indo-Pacific
  • Maritime security
  • Critical infrastructure vulnerabilities
  • Supply chain disruptions

Recent cooperation includes:

  • Joint naval exercises
  • Defence policy dialogues
  • Cybersecurity cooperation
  • Critical minerals partnership

Importance for India

Indo-Pacific Strategy

Australia is a key partner in India’s Indo-Pacific vision and maritime security architecture.

Critical Minerals

Australia possesses large reserves of lithium and rare earth minerals essential for:

  • Electric vehicles
  • Renewable energy
  • Semiconductor industries

Education and Skilled Mobility

Australia is one of the top destinations for Indian students.

Trade Diversification                        

Closer ties help India reduce overdependence on China-centric supply chains.

Challenges in the Relationship

  • Trade imbalance concerns
  • Visa and migration issues
  • Different economic priorities
  • Trust deficit in strategic sectors

China-related geopolitical pressures

Padma Awards 2026: President Murmu Confers India’s Highest Civilian Honours

President Droupadi Murmu conferred the Padma Awards 2026 at the Civil Investiture Ceremony held at Rashtrapati Bhavan, recognizing individuals for exceptional contributions in fields such as art, literature, sports, science, public affairs, medicine, and social service.

What are the Padma Awards?

    • The Padma Awards are among India’s highest civilian honours instituted in 1954.

      They are divided into three categories:

      1. Padma Vibhushan
        • Awarded for exceptional and distinguished service
      2. Padma Bhushan
        • Awarded for distinguished service of a high order
      3. Padma Shri
        • Awarded for distinguished service in any field

      These awards are announced every year on Republic Day.

Selection Process

The Padma Awards Committee is constituted every year by the Prime Minister.

Recommendations are received from:      

  • State governments
  • Union Territories
  • Ministries
  • Governors and Chief Ministers
  • Members of Parliament
  • Previous awardees
  • General public nominations

The committee submits recommendations to the President for approval.

Important Features

    • Open to All Fields

      Awards are given in fields such as:

      • Arts
      • Literature
      • Education
      • Sports
      • Medicine
      • Science
      • Social work
      • Public affairs

      No Monetary Reward

      Padma Awards do not carry any cash prize or financial benefit. Awardees receive:

      • A medal
      • A certificate signed by the President of India

      Recognition of “Unsung Heroes”         

      In recent years, the government has focused on recognizing grassroots contributors and lesser-known personalities from rural and tribal communities.

Constitutional and Administrative Significance

Although the Padma Awards are civilian honours, they:

  • Do not carry titles
  • Cannot be used as prefixes or suffixes to names under Article 18 of the Constitution

Criticism and Debates

Some recurring concerns include:

  • Allegations of politicisation
  • Regional imbalance
  • Lack of transparency
  • Debate over celebrity dominance versus grassroots recognition

Major Padma Awardees 2026

Padma Vibhushan

Highest among Padma awards after Bharat Ratna.

  • Dharmendra (Posthumous) – Art
  • K. T. Thomas – Public Affairs
  • N. Rajam – Art
  • P. Narayanan – Science & Engineering
  • V. S. Achuthanandan (Posthumous) – Public Affairs

Padma Bhushan Awardees

  • Mammootty – Art
  • Alka Yagnik – Art
  • Piyush Pandey – Literature & Education
  • Uday Kotak – Trade & Industry
  • Shibu Soren – Public Affairs

Padma Shri Awardees

Sports                  

  • Rohit Sharma
  • Harmanpreet Kaur

Cinema & Entertainment

  • R. Madhavan
  • Prosenjit Chatterjee
  • Satish Shah (Posthumous)

Folk & Culture

  • Taga Ram Bheel – Folk Music

Literature & Social Work

  • Shafi Shauq – Literature & Education
  • Anke Gowda – Social Work
  • S. G. Susheelamma – Social Work

Overall Statistics of Padma Awards 2026

  • Total Awards: 131
  • Padma Vibhushan: 5
  • Padma Bhushan: 13
  • Padma Shri: 113
  • Women Awardees: 19
  • Foreigners/NRI/PIO/OCI recipients: 6
  • Posthumous awards: 16

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