UPSC CSE Current Affairs — 30 July 2026

DRDO successfully conducted the maiden flight-test of 'Kusha' Long-Range Surface-to-Air Missile (LR-SAM) from the APJ Abdul Kalam Island test range off Odisha's coast. Kusha is indigenously developed to intercept aerial threats including aircraft, drones, and cruise missiles at long ranges. The system is designed to replace the ageing Akash missile system and strengthen India's air defence architecture. Development is led by DRDO under the Project Kusha programme approved by the Defence Acquisition Council.

Kusha fills a critical capability gap in India's layered air defence architecture. India currently relies on imported S-400 Triumf systems (from Russia) for long-range surface-to-air coverage and the domestically developed Akash system for medium range. Kusha is intended to provide an indigenous long-range option — reportedly capable of engaging targets at ranges exceeding 350 km at high altitudes — bridging the gap between Akash and S-400 class systems.

The development is strategically significant for three reasons. First, it reduces dependence on Russian hardware at a time when geopolitical tensions and sanctions risks make supply chain continuity uncertain. Second, it advances India's defence indigenisation goals under Atmanirbhar Bharat, directly aligned with the government's push to increase domestic defence production. Third, it strengthens multi-layered air defence, which has become critical after lessons from conflicts like Ukraine where integrated air defence networks proved decisive.

The test was conducted from APJ Abdul Kalam Island (formerly Wheeler Island), Odisha — India's primary integrated test range for missiles. DRDO's Defence Research & Development Laboratory (DRDL), Hyderabad, is the nodal lab. The system uses an active radar seeker for terminal guidance and is intended for deployment with the Indian Air Force. Project Kusha was formally approved by the Cabinet Committee on Security (CCS), underlining its strategic priority status.

PM SHRI (PM Schools for Rising India) is a centrally sponsored scheme launched in September 2022 to upgrade 14,500 existing government schools into model schools across India. These schools showcase NEP 2020 implementation, emphasizing holistic, inquiry-based learning. The scheme operates in two phases with a total outlay of approximately ₹27,360 crore over five years. As of 2024–25, over 6,400 schools have been selected and onboarded under the scheme across states and union territories.

PM SHRI is not just another school infrastructure scheme — it is the flagship vehicle for embedding NEP 2020 philosophy into public school education at scale. The key distinction is the word 'model': these schools are expected to demonstrate best practices in pedagogy, assessment, and green campus design, so that surrounding schools replicate them organically.

The scheme is implemented by the Department of School Education and Literacy under the Ministry of Education. States must sign a Memorandum of Understanding (MoU) with the Centre, agreeing to implement NEP 2020 fully. This conditionality is significant — states that have not adopted NEP 2020 framework cannot access PM SHRI funds.

Funding follows the Centrally Sponsored Scheme pattern: 60:40 between Centre and states (90:10 for North-Eastern and Himalayan states; 100% Central funding for UTs without legislature). Each selected school receives phased grants for infrastructure, labs, libraries, sports facilities, and teacher training.

From an exam perspective, PM SHRI matters because it operationalises NEP 2020 — examiners frequently link the two. It also touches on fiscal federalism (Centre-State funding ratios), education governance (MoU conditionality), and school-level financial inclusion through mid-day meals and digital learning tools. NABARD's interest is indirect: rural school upgradation connects to rural human capital formation, a key input for agricultural productivity and rural livelihood programmes.

Lok Sabha resumed discussion on three Bills in 2026: the Constitution (131st Amendment) Bill, 2026, the Delimitation Bill, 2026, and the Union Territories Laws (Amendment) Bill, 2026. Together, these seek to reserve one-third of seats for women in the Lok Sabha, State Legislative Assemblies, and Union Territory legislatures. Implementation is contingent on a fresh delimitation exercise post the next Census. The original Women's Reservation Act, 2023 (106th Amendment) was passed in September 2023.

India's women's reservation saga spans three decades. The 73rd and 74th Constitutional Amendments (1992–93) mandated one-third reservation for women in Panchayats and Urban Local Bodies — a success story. Extending that logic to Parliament proved far harder. The Women's Reservation Bill was introduced in 1996, lapsed multiple times, and finally passed as the Constitution (106th Amendment) Act, 2023 — but with a critical trigger clause: reservation kicks in only after a Census and subsequent delimitation.

The 2026 Bills operationalise this mechanism. The 131st Amendment Bill proposes to formally insert the reservation provisions into the Constitution once delimitation boundaries are redrawn. The Delimitation Bill, 2026 sets the legal framework for that delimitation exercise. The UT Amendment Bill extends the same reservation to UT legislatures like Delhi and Puducherry.

The significance is enormous: India currently ranks poorly globally on women's parliamentary representation (around 15% in Lok Sabha). Critics note that until the Census is conducted and delimitation completed — realistically not before 2029 elections — reservation will not be operative, making this a delayed promise. The OBC sub-quota debate and 'rotation of constituencies' mechanism (which could disadvantage incumbents) remain politically contentious. For exam purposes, the 2023 Act's amendment number, the trigger conditions, and the three-bill structure of 2026 are key.

EPFO, managing over ₹24 lakh crore in corpus, deploys funds through empanelled Portfolio Management Service (PMS) providers under SEBI's regulatory framework. PMS firms invest across government securities, bonds, and equities under EPFO's investment pattern notified by the Ministry of Finance. SEBI's latest data shows retirement funds like EPFO account for nearly 85% of institutional PMS AUM. EPFO's equity exposure via ETFs began in 2015–16, with allocation capped at 15% of incremental deposits annually.

EPFO is the world's largest defined-contribution retirement fund administrator, covering over 7 crore active members. Because it is a statutory trust — not a mutual fund — it cannot invest directly in markets. Instead, it delegates fund management to SEBI-registered Portfolio Management Service providers such as SBI Funds Management and UTI AMC, operating under a discretionary or non-discretionary mandate. This separates accountability: EPFO sets the investment pattern (notified by the Finance Ministry), while PMS managers execute trades within those bounds.

The investment pattern mandates a minimum 45% in government securities, up to 45% in bonds of PSUs and rated corporates, and up to 15% in equities (only via ETFs, never direct stocks). The ETF route was introduced in 2015–16 to give members equity upside while limiting volatility risk. EPFO typically invests through Nifty 50 and Sensex ETFs, with SBI Nifty 50 ETF being the largest single holding.

Why does this matter? EPFO's asset allocation decisions move markets. A 15% equity ceiling translates to tens of thousands of crores annually entering equity markets. Any policy change — say, raising the equity cap or allowing REITs/InvITs — would have systemic consequences for capital markets and domestic institutional investor (DII) flows. The PMS regulatory layer is thus SEBI's oversight mechanism for India's largest retirement corpus, linking labour welfare policy directly to securities market regulation.