Current Affairs 15 August 2026

India Launches CBDC-Based Food Subsidy Transfers under PMGKAY

The Government of India on August 14, 2026 launched Central Bank Digital Currency (CBDC)-based Direct Benefit Transfer (DBT) under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in Chandigarh and Dadra & Nagar Haveli. The programme was inaugurated by Union Minister Pralhad Joshi, along with Punjab Governor and Chandigarh Administrator Gulab Chand Kataria and Union Minister Shivraj Singh Chouhan.

Under the new system, eligible beneficiaries receive the food subsidy directly in their Digital Rupee (e₹) wallets instead of conventional bank accounts. The CBDC is programmable or purpose-bound, meaning the subsidy can be used for the intended purpose of purchasing foodgrains from empanelled merchants. Smartphone users can pay by scanning QR codes, while provision has also been made for feature-phone users through OTP-based mechanisms.

Chandigarh and Dadra & Nagar Haveli became the first targeted Union Territory areas to operationalise CBDC-based food-subsidy transfers for all eligible PMGKAY beneficiaries. The initiative builds on earlier pilots launched in Gujarat on February 15, 2026 and Puducherry on February 26, 2026. The government describes the present rollout as the first large-scale application of CBDC in a Central Government welfare programme and as a proof-of-concept that can potentially be scaled to other States and UTs.

What is the Digital Rupee?

The Digital Rupee or e₹ is India’s Central Bank Digital Currency, issued by the Reserve Bank of India (RBI). It is the digital form of the physical rupee, is a liability of the RBI and is legal tender. Unlike UPI, which is primarily a payment mechanism, e₹ itself represents money and can be stored in a CBDC wallet. India’s retail CBDC pilot became operational on December 1, 2022.

Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)

Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) provides free foodgrains to around 81.35 crore beneficiaries covered under the National Food Security Act, including Antyodaya Anna Yojana and Priority Household beneficiaries. The Central Government decided to continue free foodgrain distribution under PMGKAY for five years from January 1, 2024, with an estimated expenditure of about ₹11.80 lakh crore over the period.

Supreme Court Reinforces Constitutional Safeguards Against Arbitrary Arrest

The Supreme Court, in Vihaan Kumar v. State of Haryana (2025), reinforced that every arrested person must be effectively and meaningfully informed of the grounds of arrest. This requirement flows from Article 22(1) of the Constitution. The Court held that failure to communicate the grounds directly to the arrested person renders the arrest illegal and can also vitiate subsequent remand.

The Court clarified that merely informing the arrested person’s relatives about the arrest or its grounds does not satisfy Article 22(1). Similarly, an arrest memo containing the FIR details, place, date and time of arrest is different from the actual “grounds of arrest”. The grounds must be communicated in a manner and language that enables the arrested person to understand why he or she has been arrested.

Under the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, Section 47 requires that a person arrested without a warrant be informed immediately of the full particulars of the offence or other grounds for arrest. Section 35 regulates the police power to arrest without a warrant and requires that specified conditions be satisfied in relevant cases.

Article 22(2) provides that an arrested and detained person must be produced before the nearest Magistrate within 24 hours of arrest, excluding the time required for travel from the place of arrest to the Magistrate’s court. These protections are closely connected to the right to life and personal liberty under Article 21. The Supreme Court observed that failure to follow Article 22 safeguards can also violate Article 21.

Key Points for Exams:

• Right to know grounds of arrest: Article 22(1)
• Right to consult and be defended by a legal practitioner: Article 22(1)
• Production before Magistrate within 24 hours: Article 22(2)
• Right to life and personal liberty: Article 21
• BNSS provision on communicating grounds of arrest: Section 47
• BNSS provision governing arrest without warrant: Section 35
• Articles 14, 19 and 21 are often referred to in constitutional jurisprudence as the “Golden Triangle” of fundamental rights.

India’s Defence Sector Records ₹1.78 Lakh Crore Production and ₹38,424 Crore Exports

The Ministry of Defence highlighted the rapid expansion of the country’s indigenous defence ecosystem under Atmanirbhar Bharat. India’s defence budget has increased from ₹2.53 lakh crore in 2013–14 to ₹7.85 lakh crore in 2026–27, while capital expenditure for military modernisation has risen from ₹94,587.95 crore in 2014–15 to ₹2.19 lakh crore in 2026–27.

India recorded its highest-ever defence production of ₹1.78 lakh crore in FY 2025–26. Public-sector entities accounted for about 76% of production and the private sector for 24%. Defence exports also reached a record ₹38,424 crore, compared with only ₹686 crore in 2013–14—a more than 56-fold increase. Indian defence products are now exported to over 80 countries. The government has targeted annual defence production of ₹3 lakh crore and defence exports of ₹50,000 crore by 2029.

The government is also increasing indigenous procurement and innovation. The Defence Acquisition Council (DAC) has accorded Acceptance of Necessity (AoN) for more than ₹6 lakh crore of DRDO-designed systems to be manufactured by Indian industry. Major approvals include 97 Tejas Mk-1A fighter aircraft and 156 Light Combat Helicopter (LCH) Prachand helicopters. The Draft Defence Acquisition Procedure (DAP) 2026 proposes simpler acquisition categories and indigenous-content requirements of up to 60%; it remains a draft proposal and should not be treated as an implemented procurement regime.

India has established two Defence Industrial Corridors — Uttar Pradesh and Tamil Nadu. By April 2026, the Uttar Pradesh corridor had received investment commitments of ₹42,057 crore, while the Tamil Nadu corridor had attracted ₹32,699 crore. Foreign Direct Investment in defence is permitted up to 74% under the Automatic Route and up to 100% under the Government Route, subject to applicable conditions.

NITI Aayog Report: India’s Services Sector

NITI Aayog has published the report “India’s Services Sector: Insights on Regulatory Regime in Professional Services” in August 2026. Prepared by its Services Division, the report examines the regulatory framework governing legal services, accounting, auditing and bookkeeping, architectural services, engineering services, and healthcare and allied healthcare services. It seeks to identify regulatory gaps and improve the competitiveness and global mobility of Indian professionals.

The report highlights the growing importance of services to the Indian economy. In FY 2023–24, services contributed 55% of India’s GDP. India ranked 7th globally in services exports in 2024, accounting for 4.3% of global services exports, compared with about 2% in 2005. Professional and management consulting services contributed nearly 20% of India’s total services exports in 2024–25. Professional services exports recorded a Compound Annual Growth Rate (CAGR) of about 18% between FY15 and FY25.

The report also examines regulatory restrictiveness using the Organisation for Economic Co-operation and Development (OECD) Services Trade Restrictiveness Index (STRI). Among 51 countries covered, India ranked 2nd most restrictive in architectural services, 3rd in legal services and 4th in accounting services, while it ranked 38th in engineering services, indicating a comparatively more open regulatory regime for engineering. These rankings are presented by the report as indicators of the regulatory environment rather than as an overall ranking of service quality.

Key Points for Exams:

• Report: India’s Services Sector: Insights on Regulatory Regime in Professional Services
• Services contribution to India’s GDP in FY24: 55%
• India’s global rank in services exports in 2024: 7th
• India’s share of global services exports: 4.3%

Q1. Which Article of the Constitution of India provides that an arrested person must be informed, as soon as may be, of the grounds of arrest?
A. Article 19(1)
B. Article 20(2)
C. Article 21
D. Article 22(1)

Q2. Which Article of the Constitution of India requires that an arrested person be produced before the nearest Magistrate within 24 hours of arrest?
A. Article 20(1)
B. Article 21
C. Article 22(1)
D. Article 22(2)

Q3. According to NITI Aayog’s 2026 report “India’s Services Sector: Insights on Regulatory Regime in Professional Services”, what was India’s rank in global services exports in 2024?
A. 3rd
B. 5th
C. 7th
D. 10th

Q4. What was India’s defence export value in the Financial Year 2025–26?
A. ₹23,622 crore
B. ₹30,424 crore
C. ₹38,424 crore
D. ₹50,000 crore

Q5. The CBDC-based food subsidy delivery pilot programme under PMGKAY was first implemented in which of the following States/Union Territories?
A. Gujarat and Puducherry
B. Rajasthan and Chandigarh
C. Gujarat and Goa
D. Puducherry and Kerala

Q6. The full-scale rollout of CBDC-based food subsidy transfers under PMGKAY was operationalised in which of the following?
A. Gujarat and Puducherry
B. Chandigarh and Dadra & Nagar Haveli
C. Delhi and Chandigarh
D. Gujarat and Rajasthan