Daily Current Affairs Brief: February 2, 2026

Authored By: K Shiva

1. International Current Affairs

India-US Trade Pact: India and the U.S. have finalized a framework for an interim trade agreement, with a formal signing expected in March 2026.

Tariff Reductions: Following the deal, President Trump has removed additional tariffs on Indian goods, including jewelry and aqua products.

Import Concessions: India has scrapped import duties on 800-1600cc bikes (benefiting brands like Harley Davidson) and nuclear generation equipment from the U.S..

Gaza Border Opening: The Rafah border crossing was expected to reopen for Palestinians on foot after being closed for nearly two years.

Venezuela Oil Deal: President Trump claimed a "concept of a deal" is in place for India to purchase crude oil from Venezuela instead of Iran or Russia.

2. National Current Affairs

Union Budget 2026: Finance Minister Nirmala Sitharaman presented her record ninth consecutive budget with a total size of ₹53.47 trillion.

Capex Push: The government set a massive capital expenditure (capex) target of ₹12.22 trillion for FY27, the highest in a decade at 4.4% of GDP.

Tax on F&O: Securities Transaction Tax (STT) on futures was hiked to 0.05% and on options to 0.15% to discourage speculative trading.

Buyback Taxation: Proceeds from share buybacks will now be taxed as capital gains for shareholders rather than as dividends, effective April 1, 2026.

16th Finance Commission: The Centre accepted the recommendation to maintain the states' share in central taxes at 41% for the next five years.

3. Science & Technology

Quantum Valley: CM Chandrababu Naidu and Union Minister Jitendra Singh laid the foundation for the "Amaravati Quantum Valley" in Andhra Pradesh.

First Quantum Computer: India’s first quantum computer is expected to be operational in Andhra Pradesh by December 2026.

Data Centre Tax Holiday: Foreign cloud service providers are offered a 20-year tax holiday (until 2047) to set up data centres in India.

Semiconductor Mission 2.0: The government allocated ₹1,000 crore for phase two of the India Semiconductor Mission to boost domestic chip equipment manufacturing.

Rare Earth Corridors: Dedicated corridors for mining and processing rare earth minerals will be established in Kerala, Tamil Nadu, Odisha, and Andhra Pradesh.

4. States Current Affairs

Andhra Pradesh (Polavaram): The Union Budget allocated ₹3,320 crore for the Polavaram project and ₹1,561 crore for the development of Amaravati.

Telangana Dissatisfaction: The Telangana government expressed dissatisfaction, claiming the state's interests were "cold-shouldered" in the Union Budget.

Purvodaya States: Five states—Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh—were designated as "Purvodaya" states for targeted industrial and tourism development.

Health Infrastructure: Five regional medical hubs and a second NIMHANS in North India were proposed to strengthen healthcare access.

Rare Earths: Odisha, Andhra, Kerala, and Tamil Nadu will receive support to establish mineral-rich "rare earth corridors".

5. District & Local News

Visakhapatnam: Selected as one of seven "City Economic Regions" to receive ₹5,000 crore for infrastructure over five years.

Varanasi Connectivity: Two of the seven new high-speed rail corridors will connect to Varanasi (Delhi-Varanasi and Varanasi-Siliguri).

Local Body Polls: The Andhra Pradesh State Election Commission issued notifications for preparing voter lists for upcoming municipal and panchayat elections.

Turtle & Bird Trails: Conservation trails will be developed at Pulicat Lake (Andhra/TN) and along the coasts of Odisha and Kerala.

Keesara Bus Fire: A private sleeper bus caught fire near Keesara; 39 passengers escaped safely due to the driver's alertness.

6. Sports & Games

T20 World Cup: Captain Suryakumar Yadav’s heroic 94-run innings led India to a winning start in the T20 World Cup 2026 against an unspecified opponent.

Pakistan Boycott: The Pakistan government directed its team not to play the group-stage match against India in Colombo on February 15.

Khelo India Mission: A revitalized mission was launched to transform sports infrastructure and coaching over the next decade.

High Jump Success: Tejaswin Shankar won the men’s high jump title at the DeLoss Dodds Invitational 2026 with a jump of 2.26m.

Sports Goods Hub: The Budget allocated ₹500 crore to promote sports goods manufacturing hubs in India.

7. Cinema & Entertainment

Orange Economy: The Budget recognizes animation, visual effects, and gaming as the "Orange Economy," planning content creator labs in 15,000 schools.

Digital Heritage Grid: A "National Destination Digital Knowledge Grid" will be created to document cultural, spiritual, and heritage sites.

Modern Classic Rally: Over 140 iconic cars, including Ratan Tata's personal collection, were showcased at the Autocar India Modern Classic Rally in Mumbai.

Gaming Sops: While some sectors saw duty cuts, the budget offered no new duty sops for video games and e-readers.

8. GK Points for Competitive Jobs

1. Which major global environmental day is observed today, 2 February? Answer: World Wetlands Day (The theme for 2026 is "Wetlands and Traditional Knowledge: Celebrating Cultural Heritage," highlighting the link between local indigenous practices and wetland conservation.)

2. Who made history on February 1 by becoming the youngest man to achieve a "Career Grand Slam" after winning the Australian Open 2026? Answer: Carlos Alcaraz (The 22-year-old Spaniard defeated 10-time champion Novak Djokovic in four sets to clinch his first Australian Open title.)

3. Which state recently launched the "Mukhyamantri Gramotthan Yojana" to provide urban-style infrastructure to 114 rural villages? Answer: Gujarat (Inaugurated by CM Bhupendra Patel, the scheme focuses on roads, drainage, solar street lighting, and e-Gram services.)

4. Who was sworn in as the first-ever woman Deputy Chief Minister of Maharashtra on 2 February 2026? Answer: Sunetra Pawar (She succeeds the late Ajit Pawar and was unanimously elected as the leader of the NCP legislature party.)

5. To provide relief to cancer patients, the Union Budget 2026 has proposed a full exemption of Basic Customs Duty (BCD) on how many cancer drugs? Answer: 17 drugs (This move aims to reduce the financial burden on patients requiring life-saving oncology medications.)

6. Which Indian state recently achieved a Guinness World Record by distributing 5,555 e-cycles to women in just 24 hours? Answer: Andhra Pradesh (The initiative, led by CM N. Chandrababu Naidu in Kuppam, aims to promote green mobility and women's empowerment.)

7. Which Indian city recently hosted the "IndiaAI–Digital India Workshop" as a pre-event for the upcoming 2026 Impact Summit? Answer: Gangtok (Sikkim) (The workshop focused on the practical applications of AI in governance and education.)

8. The Indian Meteorological Department (IMD) recently warned that which climate phenomenon is likely to develop after July 2026? Answer: El Niño (El Niño is the warming phase of the ENSO cycle, which can significantly suppress the Indian monsoon rains.)

9. Who won the Women's Doubles title at the Australian Open 2026? Answer: Elise Mertens (Belgium) and Zhang Shuai (China) (This was their ninth Grand Slam doubles title together.)

10. Which two states are the "Theme States" for the 39th Surajkund International Crafts Mela, which began on 31 January 2026? Answer: Uttar Pradesh and Meghalaya (The partner nation for this year's Mela is Egypt.)

11. Fastest Economy: India remains the fastest-growing major economy with a projected growth rate of 7.4% in 2025-26.

12. Debt-to-GDP Target: The government aim is to reduce the debt-to-GDP ratio to 50% by FY 2030-31.

13. STT Definition: Securities Transaction Tax is a tax levied on the value of securities (excluding commodities and currency) transacted on a recognized stock exchange.

14. Divisible Pool: Refers to the portion of central taxes that is shared with state governments based on Finance Commission recommendations.

15. Viksit Bharat 2047: The government’s vision to transform India into a developed nation by the 100th anniversary of its independence.

9. Do You Know?

• The "LRS" Change: In Budget 2026, the government proposed tracking outward remittances more strictly to prevent money laundering, while simultaneously easing the process for students studying abroad.

• Wetlands as "Kidneys": Wetlands are often called the "Kidneys of the Earth" because they filter out toxins and sediment from water before it enters the sea.

• Ramsar Record: India now has 98 Ramsar Sites, making it the country with the largest number of protected wetlands in South Asia.

• The "Romeo-Juliet" Clause: The Supreme Court is currently debating a new legal concept known as the "Romeo-Juliet" clause to prevent the criminalization of consensual adolescent relationships under the POCSO Act.

• Inverse Relation: Historically, gold and stocks are often inversely proportional; gold acts as a stabilizer during market stress when equities fall.

• Customs Duty on Drugs: Basic Customs Duty has been fully exempted for 17 life-saving drugs, including those for cancer.

• Taxpayer Trust: Minor tax defaults have been decriminalized, and the time limit to revise returns is extended by 3 months with a small fee.

• Rare Earth Dependence: India is pushing for domestic rare earth corridors to reduce dependence on China for critical minerals used in electronics.

10. Job & Educational Topics

Skilling Pipeline: The Budget focuses on building "skilling pipelines" in healthcare, aiming to add 100,000 professionals over five years.

Caregiver Training: A proposal to train 15 lakh caregivers for geriatric and allied care to meet global demand for nursing services.

University Townships: Five university townships will be developed near industrial corridors to align education with industry needs.

Skill Gap Mapping: A high-powered committee will be set up to map skill gaps and assess the impact of AI on future jobs.

11. Day Special: February 2nd

Budget Aftermath: Traditionally, the day following the Union Budget is marked by market reactions; the 2026 Budget led to a 1,500+ point drop in the Sensex due to the STT hike.

Operation Sindoor: The 2026 Budget is the first after "Operation Sindoor," leading to a record 15% hike in the defense outlay.

Gaza Developments: This date marks the anticipated reopening of the Rafah border crossing for humanitarian movement