UPSC Current Affairs 18 June 2026

Topics Covered Today (4)

1. Water Security for Viksit Bharat — GS 3 (Water Resources, Governance, Sustainable Development)
2. RBI and Its Growing Fiscal Role — GS 3 (Indian Economy, Banking, Fiscal Federalism)
3. India-Russia RELOS Agreement — GS 2/3 (International Relations, Defence Cooperation)
4. The New Grammar of Energy Security — GS 3 (Energy Security, Critical Minerals, Geopolitics)

Topic 1: Water Security for Viksit Bharat (Developed India) GS Paper 3 | Water Resources | Jal Jeevan Mission | Namami Gange | Sustainable Development

Why in the News? India holds 18% of the world’s population but only 4% of global freshwater resources. As India targets “Viksit Bharat” by 2047, the government has shifted from fragmented water schemes to an integrated water security approach spanning drinking water access, sanitation, groundwater recharge, river conservation, and inter-basin transfer.

India’s Water Resource Reality: Key Statistics

Indicator	Figure
India’s share of world population	18%
India’s share of global freshwater resources	Only 4%
Water used in agriculture	80–85% of total water consumption
Rural households with tap water (2014)	17% (3.23 crore households)
Rural households with tap water (2026)	81%+ (15.8 crore+ households)
JJM target for 100% coverage	2028
Daily time saved for rural women (JJM impact)	~55 crore hours daily

Five Pillars of India’s Water Security Framework

A. Jal Jeevan Mission (JJM) — Rural Drinking Water

The world’s largest rural drinking water supply programme. Tap water coverage has grown from 17% (2014) to over 81% (2026) — more than 15.8 crore rural households now have functional household tap connections (FHTC). Beyond infrastructure, JJM’s most significant impact is socio-economic: an estimated 55 crore hours of daily time saved for rural women, previously spent fetching water, is now available for education, livelihoods, and child development.

B. Swachh Bharat Mission-Gramin (SBM-G) — From Sanitation to Health

• Not merely a toilet construction campaign — SBM-G is recognised globally as a model of public participation (“Janbhagidari”)
• WHO estimates SBM-G averted over 3 lakh diarrhoeal deaths between 2014 and 2019
• SBM 2.0 has shifted focus from Open Defecation Free (ODF) status to “ODF Plus” — incorporating solid and liquid waste management at the village level

C. Water Conservation and Groundwater Recharge

• Under “Jal Sanchay Jan Bhagidari,” over 1.55 crore rainwater harvesting and groundwater recharge structures built nationwide (as of May 2026)
• Result: decline in over-exploited groundwater blocks in several regions; measurable water table improvement recorded

D. Namami Gange and River Conservation

Indicator	Progress
Sewage treatment capacity developed	4,260 MLD (Million Litres per Day) over the past decade
BOD level (2017)	26 Tons Per Day (TPD)
BOD level (2024)	10.75 TPD — sharp reduction in pollution load
Current status	Ganga water meets bathing water quality standards at most monitoring sites

E. River Interlinking Project — Ken-Betwa

The Ken-Betwa River Interlinking Project — India’s first major river interlinking initiative, pending for decades — is now progressing on the ground. It is designed as a lifeline for the chronically drought-prone and arid Bundelkhand region, transferring surplus water from the Ken river basin to the water-deficit Betwa basin.

Key Challenges to Water Security

Challenge	Detail
Climate Change Threat	Changing monsoon patterns and intensifying heatwaves are causing water sources to dry up rapidly — undermining infrastructure gains
Sustainability of Sources	Connecting households to tap water is one challenge; ensuring year-round water availability at the source is a separate, larger challenge
Agricultural Over-Utilisation	80–85% of India’s water goes to agriculture — complete water security is unachievable without improving irrigation efficiency (drip/sprinkler adoption, crop diversification away from water-intensive crops)

UPSC Note GS 3 connection: This topic links water resources with governance (integrated vs. fragmented management), SDG 6 (Clean Water and Sanitation), federalism (water is a State subject under the Constitution, but inter-state river disputes require central coordination), and climate adaptation.

Practice Question “The challenge of water security in India has not only been about a scarcity of resources but also about their fragmented management.” In light of recent government initiatives, discuss how an integrated water management approach can help achieve the goal of ‘Viksit Bharat’. (15 Marks, 250 Words)

Practice MCQ With reference to India’s water security initiatives, consider the following statements: 1. The Jal Jeevan Mission aims to provide Functional Household Tap Connections to all rural households by 2028. 2. Under SBM 2.0, the focus has shifted from Open Defecation Free status to ODF Plus status through solid and liquid waste management. 3. The Ken-Betwa Link Project is designed to address water scarcity in the Bundelkhand region. Which of the statements given above is/are correct? (A) 1 and 2 only   (B) 2 and 3 only   (C) 1 and 3 only   (D) 1, 2 and 3 Answer: (D) 1, 2 and 3 — All three statements are correct based on current government water security initiatives.

Topic 2: RBI and Its Growing Fiscal Role GS Paper 3 | Indian Economy | Banking | Fiscal Federalism | Central Bank Autonomy

Why in the News? The RBI approved a record surplus transfer of ₹2.87 lakh crore to the Central Government for FY 2026 — far exceeding historical averages of ₹30,000–65,000 crore. While compliant with RBI’s revised Economic Capital Framework, the scale has reignited debate on the central bank’s changing fiscal role, its operational autonomy, and the implications for fiscal federalism.

Key Statistics: The Scale of the Surplus Transfer

Indicator	Figure
RBI surplus transfer to Centre (FY 2026)	₹2.87 lakh crore (record high)
Historical average surplus transfer	₹30,000 crore – ₹65,000 crore
RBI balance sheet (March 2026)	₹91.97 lakh crore (grew 20.6%)
RBI gross income growth	26%+ year-on-year
Gold sold by RBI (forex intervention)	~$12 billion
Foreign currency assets purchased	~$7.5 billion

Why Did the Surplus Grow So Sharply?

• Interest on Foreign Assets: Elevated global interest rates significantly boosted RBI’s income from its foreign currency investments and securities holdings
• Forex Market Intervention: To stabilise the Rupee, RBI actively traded — selling approximately $12 billion in gold and purchasing ~$7.5 billion in foreign currency assets, generating substantial trading profits in the process

Understanding the Institutional Background

Traditionally, an “institutional distance” separates the central bank and the government: governments manage expenditure through taxation and borrowing, while central banks focus on monetary stability and inflation control. The scale of this transfer challenges that traditional separation.

Challenge A: Central Bank Independence vs. Fiscal Tool

The core concern: is the RBI gradually shifting from a “stabilising institution” toward becoming a “fiscal tool” for the government? The surplus gives the government substantial fiscal headroom without raising new taxes or fresh borrowing — but excessive reliance on this mechanism could, over time, compromise the independence of monetary policy decision-making.

Challenge B: Fiscal Federalism — The “Federal Blind Spot”

Issue	Implication
Classification as Non-Tax Revenue	The RBI surplus falls under “non-tax revenue” — it is NOT part of the divisible pool shared with states
Finance Commission Formula Inapplicable	States receive zero automatic share of this ₹2.87 lakh crore, despite the formula governing most other Central revenues
Constitutional Tension	States face heavy expenditure pressure and strict borrowing limits under Article 293 of the Constitution, while this massive sum remains concentrated solely with the Centre — promoting “fiscal centralisation”

UPSC Note Article 293 of the Constitution restricts state borrowing — states need Central government consent to raise loans if they are indebted to the Centre. This constitutional asymmetry is central to the fiscal federalism debate around RBI surplus transfers.

Practice Question “Large-scale surplus transfers by the central bank to the government help manage the fiscal deficit, but they also raise serious questions about fiscal federalism and the central bank’s autonomy.” Critically evaluate this statement. (15 Marks, 250 Words)

Practice MCQ With reference to the RBI’s surplus transfer to the Government of India, consider the following statements: 1. The surplus transfer is governed by the RBI’s Economic Capital Framework. 2. RBI surplus transfers are classified as tax revenue and are therefore part of the divisible pool shared with states. 3. States automatically receive a share of the RBI surplus transfer based on the Finance Commission’s formula. Which of the statements given above is/are correct? (A) 1 only   (B) 1 and 2 only   (C) 2 and 3 only   (D) 1, 2 and 3 Answer: (A) 1 only — Statements 2 and 3 are incorrect: the RBI surplus is classified as NON-TAX revenue, meaning it is not part of the divisible pool, and states do not receive any automatic share through the Finance Commission formula.

Topic 3: India-Russia Reciprocal Logistics Exchange Agreement (RELOS) GS Paper 2/3 | International Relations | Defence Cooperation | Strategic Autonomy | LSA

Why in the News? RELOS between India and Russia came into force in January 2026. Social media rumours falsely claimed it permits permanent deployment of 3,000 Russian troops on Indian soil or constitutes a military alliance. Defence experts have clarified RELOS is a purely administrative and logistics agreement — India’s ninth such Logistics Support Agreement (LSA) globally.

What Are Logistics Support Agreements (LSAs)?

Aspect	Detail
Definition	A foundational agreement between two countries’ militaries for administrative purposes
Objective	Allows reciprocal use of military bases, ports, and airports for supplies, repairs, and refuelling
Permitted Occasions	Joint military exercises, training, informal port calls, Humanitarian Assistance and Disaster Relief (HADR) operations
Core Benefit	Reduces operational paperwork and administrative delays between armed forces

Key Features of RELOS

• Reciprocal Access: Warships from both nations get refuelling, repair, and port-visit facilities at each other’s ports; military aircraft permitted to use each other’s airspace and airfields
• The “3,000 Troops” Ceiling: This is NOT a permanent deployment figure — it is a broad upper ceiling regulating the maximum personnel, ships, or aircraft movement during joint exercises or missions
• No Permanent Bases: RELOS explicitly prohibits the establishment of any permanent military base of either country on the other’s territory
• Duration: Valid for 5 years, amendable or extendable as needed

Rumour vs. Reality: RELOS Fact-Check

Social Media Claim (Rumour)	Actual Defence Policy (Reality)
India and Russia will permanently deploy 3,000 troops in each other’s territory	The 3,000 figure is only the maximum personnel ceiling permitted during joint exercises and HADR missions — not permanent deployment
This is a new “military alliance” between India and Russia	RELOS is a non-binding logistics support framework — similar to agreements India already has with the US and 8 other nations
This threatens India’s sovereignty and will lead to foreign bases	The agreement strictly prohibits any permanent basing arrangement by either party

Strategic Importance for India

A. Geopolitical Balance and Strategic Autonomy

India signed a similar agreement with the United States in 2016 — LEMOA (Logistics Exchange Memorandum of Agreement). By also implementing RELOS with Russia, India demonstrates it is not tilted toward any single bloc (Western or non-Western) — a direct expression of strategic autonomy in practice.

B. Access to the Arctic Region

The most strategically significant feature of RELOS is that it grants India access to Russian military and logistical facilities in the Arctic. As global warming opens new Arctic shipping routes and accelerates energy resource exploration, this access strengthens India’s presence in an emerging geopolitical theatre.

C. India’s Global LSA Network

India has now signed LSAs with a total of 9 countries: USA (LEMOA), UK, France, Vietnam, Japan, Australia, Singapore, Oman, and now Russia (RELOS) — reflecting India’s expanding global naval and military operational footprint.

UPSC Note Compare with LEMOA (2016, USA): both LEMOA and RELOS are logistics-only agreements, not mutual defence pacts. Neither obligates India to join military operations or alliances. This distinction is frequently tested in GS 2 International Relations questions.

Practice Question “Logistics Support Agreements (LSAs) enhance the operational capability and strategic reach of a country’s armed forces without becoming part of a military alliance.” Critically analyse this statement with special reference to the recently implemented India-Russia ‘RELOS’ agreement. (15 Marks, 250 Words)

Practice MCQ With reference to the India-Russia Reciprocal Logistics Exchange Agreement (RELOS), consider the following statements: 1. RELOS permits the permanent stationing of foreign military bases on each other’s territory. 2. The agreement allows reciprocal access to ports and airfields for refuelling, repair, and resupply purposes. 3. India has signed similar Logistics Support Agreements with the United States, Japan, France, and Australia, among others. Which of the statements given above is/are correct? (A) 1 and 2 only   (B) 2 and 3 only   (C) 1 and 3 only   (D) 1, 2 and 3 Answer: (B) 2 and 3 only — Statement 1 is incorrect: RELOS explicitly prohibits permanent military bases of either country on the other’s soil; it is strictly a reciprocal access and logistics support framework.

Topic 4: The New Grammar of Energy Security GS Paper 3 | Energy Security | Critical Minerals | Clean Energy Transition | Geopolitics

Why in the News? The global clean energy transition is fundamentally restructuring the concept of energy security — shifting it from a “flow-based” model (fossil fuels requiring continuous extraction) to a “stock-based” model (critical minerals used in equipment manufacturing). This expands the security mandate from protecting sea lanes to mastering complex industrial supply chains.

Conceptual Shift: Flow-Based vs. Stock-Based Energy Systems

Dimension	Traditional Energy System (Fossil Fuels)	Modern Clean Energy System (Clean Tech)
Core Nature	Flow-based	Stock-based
Process	Requires continuous extraction and combustion of oil, coal, or gas	Minerals (lithium, cobalt) used to manufacture equipment (batteries, solar panels) — not combusted
Impact of Disruption	Blocked shipping routes or severed pipelines cause immediate power outages or crises	Supply chain halt delays new plant construction, but existing solar panels or EVs continue functioning

The “Analytical Trap”: Why Simple Stockpiling Doesn’t Work

• Extreme Centralisation: Raw lithium may be found in Africa or South America (the “Lithium Triangle” — Argentina, Bolivia, Chile), but approximately 90% of global refining occurs in China
• Fragmented Process: Mining, processing, and advanced manufacturing (semiconductors, permanent magnets) are three entirely distinct industrial capabilities — controlling one does not guarantee control of the others
• Limits of Storage: Stockpiling raw minerals alone does not guarantee security. Without domestic industrial capacity to transform raw material into high-tech components, the stockpile has limited strategic value

Key Insight: Tomorrow’s Energy Security Is About Industrial Mastery

The central reframing: “Tomorrow’s energy security is not about protecting straits and shipping lanes; it is about mastering complex and fragmented industrial processes.” This represents a fundamental shift in what national security planning must prioritise — from naval power projection (protecting the Strait of Hormuz, Malacca Strait) toward industrial policy and processing capability.

Policy Implications for India

Required Shift	Detail
Beyond Mining Blocks Abroad	India must not focus solely on acquiring overseas mining rights — domestic processing and value-addition capability is the more durable strategic asset
Targeted Vulnerability Assessment	Supply chain security cannot be addressed indiscriminately — India must pinpoint precisely whether its vulnerability lies at the mining stage, refining stage, or advanced component manufacturing stage
Stage-Specific Intervention	Each stage (mining/refining/manufacturing) requires different policy tools — trade policy, PLI-style manufacturing incentives, or strategic partnerships respectively

Key Terms for UPSC

Term	Definition
Critical Minerals	Minerals essential for economic and national security with supply chains vulnerable to disruption — lithium, cobalt, nickel, rare earth elements
Lithium Triangle	Region spanning Argentina, Bolivia, and Chile holding the world’s largest known lithium reserves
Flow-Based Energy Security	Security model dependent on continuous, uninterrupted physical supply (oil, gas) — vulnerable to immediate disruption
Stock-Based Energy Security	Security model based on accumulated mineral stocks converted into durable equipment — disruption delays future capacity but doesn’t stop existing assets
Value Addition	Industrial processes that convert raw minerals into higher-value intermediate or finished products — the stage where most strategic value and employment is created

UPSC Note This topic connects directly to India’s National Critical Mineral Mission, KABIL (Khanij Bidesh India Limited — India’s overseas critical mineral acquisition arm), and the PLI scheme for Advanced Chemistry Cell (ACC) battery manufacturing — all examinable alongside this conceptual framework.

Practice Question “The global transition from fossil fuels to renewable energy is not just a change of fuels, but a structural shift from a ‘flow-based’ system to a ‘stock-based’ system.” In light of this statement, analyse the emerging geopolitics and India’s energy security strategies. (15 Marks, 250 Words)

📝 Practice MCQ With reference to the changing nature of global energy security, consider the following statements: 1. A “stock-based” energy system, unlike a “flow-based” system, means that supply chain disruptions immediately halt the functioning of already-deployed equipment such as solar panels and EVs. 2. The majority of global lithium refining capacity is concentrated in China, despite raw lithium reserves being located primarily in South America and Africa. 3. Mining, refining, and advanced component manufacturing of critical minerals require fundamentally different industrial capabilities. Which of the statements given above is/are correct? (A) 1 and 2 only   (B) 2 and 3 only   (C) 1 and 3 only   (D) 1, 2 and 3 Answer: (B) 2 and 3 only — Statement 1 is incorrect: in a stock-based system, supply chain disruption delays the construction of NEW capacity, but already-deployed solar panels and EVs continue functioning normally — this is precisely the resilience advantage of stock-based systems over flow-based ones.

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