Current Affairs 06 May 2026

Mexico City is sinking at nearly 25 cm per year

Mexico City is sinking at a rate of nearly 25 cm per year, according to new satellite imagery released by NASA. The city, built on an ancient lake bed, is among the world’s fastest-subsiding metropolitan areas.

The primary reason is excessive groundwater extraction and rapid urban development, which have caused the underlying aquifer to shrink. This has impacted key infrastructure roads, housing, drainage networks, water supply systems, and the metro network.

The recent findings are based on observations made between October 2025 and January 2026 by the NISAR satellite, a joint mission of NASA and ISRO.

Assembly Election Results 2026

The 2026 Assembly election results produced major political realignments across several Indian States and Union Territories.

• In Tamil Nadu, C. Joseph Vijay’s Tamilaga Vettri Kazhagam (TVK) made a dramatic electoral debut by emerging as the single largest party with 107 seats in the 234-member Assembly.
• In Kerala, the Congress-led United Democratic Front (UDF) returned to power after ten years by winning 102 seats in the 140-member Assembly.
• In West Bengal, the BJP achieved a historic victory by winning 206 seats in the 294-member Assembly,
• In Puducherry, the National Democratic Alliance (NDA) retained power by winning 18 of 30 seats.
• In Assam, the BJP-led NDA recorded a third consecutive term, winning 102 of 126 seats.

India’s first commercial Mini/Micro-LED display facility

The Union Cabinet, chaired by the Prime Minister of India, approved two new semiconductor manufacturing projects under the India Semiconductor Mission (ISM) on May 5, 2026.

The two projects will be established in Gujarat with a cumulative investment of approximately ₹3,936 crore and are expected to generate employment for 2,230 skilled professionals.

Key approved projects:

• Crystal Matrix Limited will set up an integrated compound semiconductor fabrication and ATMP facility at Dholera. It will manufacture Mini/Micro-LED display modules based on Gallium Nitride (GaN) technology. This will be India’s first commercial Mini/Micro-LED display facility.
• Suchi Semicon Private Limited will establish an OSAT (Outsourced Semiconductor Assembly and Test) facility at Surat for manufacturing discrete semiconductors.

With these approvals, the total number of projects cleared under the India Semiconductor Mission has increased to 12, with cumulative investments of around ₹1.64 lakh crore.

The Cabinet approves an increase in the strength of the Supreme Court judges from 33 to 37

The Union Cabinet, chaired by Narendra Modi, approved the introduction of the Supreme Court (Number of Judges) Amendment Bill, 2026, in Parliament.

The Bill seeks to amend the Supreme Court (Number of Judges) Act, 1956, by increasing the number of judges of the Supreme Court of India from 33 to 37, excluding the Chief Justice of India.

The objective is to improve the efficiency of the Supreme Court, reduce the pendency of cases, and ensure the speedy delivery of justice. The expenditure on salaries of judges, supporting staff, and related facilities will be met from the Consolidated Fund of India.

Constitutional background

• Under Article 124(1) of the Constitution of India, Parliament has the power to increase the number of Supreme Court judges through legislation.

Evolution of Supreme Court judge strength (excluding CJI)

Electronic Gold Receipts (EGRs)

The National Stock Exchange of India launched Electronic Gold Receipts (EGRs) on May 4, 2026, creating a new exchange-traded segment for digital gold trading in India.

EGRs are dematerialised securities that represent ownership of physical gold. They allow investors to buy, sell, hold, and transfer gold through existing demat and trading accounts. The initiative is aimed at bringing greater transparency, standardisation, and efficiency to India’s gold market.

A key feature of EGRs is the two-way conversion between physical gold and digital receipts. The underlying gold is stored in SEBI-accredited vaults, ensuring secure custody.

The Difference between Electronic Gold Receipts (EGRs) and Gold ETFs

Emergency Credit Line Guarantee Scheme 5.0 (ECLGS 5.0)

The Union Cabinet has approved Emergency Credit Line Guarantee Scheme 5.0 (ECLGS 5.0) on May 5, 2026.

The scheme aims to provide additional credit support to businesses facing short-term liquidity stress arising from the West Asia crisis. It will offer credit guarantee coverage through National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions.

Key features

• Targeted additional credit flow: ₹2.55 lakh crore, including ₹5,000 crore for airlines.
• Eligible borrowers: MSMEs, non-MSMEs, and scheduled passenger airlines with standard accounts as of March 31, 2026.
• Guarantee coverage:
  • 100% for MSMEs
  • 90% for non-MSMEs and the airline sector
• Guarantee fee: Nil
• Loan tenor:
  • MSMEs/non-MSMEs — 5 years, including a 1-year moratorium
  • Airlines — 7 years, including a 2-year moratorium
• Scheme validity: Loans sanctioned up to March 31, 2027.

Significance

ECLGS 5.0 is designed to help businesses maintain operations, protect employment, support supply chains, and ensure uninterrupted domestic production during external economic disruptions.

Mission for Cotton Productivity

The Union Cabinet, chaired by Narendra Modi, approved the Mission for Cotton Productivity with an outlay of ₹5,659.22 crore for the period 2026–27 to 2030–31.

The mission aims to address declining growth, productivity bottlenecks, and quality concerns in India’s cotton sector, while advancing the government’s 5F vision, Farm to Fibre to Factory to Fashion to Foreign.

Implementation

• The mission will be implemented jointly by the Ministry of Agriculture and Farmers Welfare and the Ministry of Textiles.