Daily Current Affairs

1. The Core Ruling (May 2026) Judicial Decision: The Indore Bench of the Madhya Pradesh High Court ruled that the disputed 11th-century Bhojshala-Kamal Maula Mosque complex in Dhar is a Hindu temple dedicated to Goddess Vagdevi (Saraswati). Quashing of 2003 Order: The court struck down the April 2003 Archaeological Survey of India (ASI) arrangement that divided access (Hindus on Tuesdays/Basant Panchami; Muslims on Fridays). Exclusive Worship Rights: The Hindu community has been granted continuous daily rights to perform worship rituals at the site; Friday namaz is no longer permitted. 2. Key Legal & Scientific Evidence ASI Scientific Survey: The judgment relied heavily on a multi-volume ASI report utilizing advanced techniques (carbon dating, GPR, XRF spot analysis, and palaeography). Structural Findings: The survey concluded that the current standing structure was constructed centuries later using the dismantled, recycled remains of an 11th-century monumental complex from the Paramara dynasty. Recovered Artefacts: Excavations revealed sculptures and iconography representing Hindu deities (Ganesha, Brahma, Narasimha, Hanuman, Krishna) alongside Jain Tirthankara imagery. Reused basalt pillars showed Arabic/Persian inscriptions carved on older temple components. Historical Continuity: The court recorded that the site historically served as a Bhojshala (a prominent center for Sanskrit learning) under Raja Bhoj, and noted that the continuity of Hindu worship at the site had never been legally extinguished. 3. Key Directives Issued by the Court Administration & Upkeep: The court handed over full supervisory control, conservation, and regulation of religious access to the ASI and directed the Central Government to manage the site as a Bhojshala temple and Sanskrit learning center. Repatriation of the Deity: The Union Government has been directed to consider active representations to bring back the original Pratima (idol) of Goddess Saraswati/Vagdevi, currently housed in the British Museum in London, and re-establish it at the site. Alternate Land for Mosque: To secure religious equity, the court stated that the state government may consider allocating an alternate, suitable piece of land within Dhar district for the Muslim community to construct a mosque. 4. Constitutional & Jurisprudential Grounding Articles 25 & 26 Alignment: The Bench noted that under the Constitution, the State has an obligation to protect ancient monuments of historical and spiritual significance, including the preservation of the sanctum sanctorum and the purity of the deity. Ayodhya Principles: The 242-page judgment drew from the 10 principles of the Supreme Court's Ram Janmabhoomi verdict, reiterating that courts can safely rely on multidisciplinary, transdisciplinary archaeological studies when determining the historical character of a site. Rejection of the 1935 Proclamation: The court dismissed the Muslim side's reliance on a 1935 official proclamation (Ailaan) by the princely State of Dhar naming it a mosque, noting it lacked legal validity as the site was already a protected monument under the 1904 Ancient Monuments Preservation Act.

1. Event Overview Context: Prime Minister Narendra Modi’s state visit to the UAE (Abu Dhabi) as part of a 5-nation tour (including the Netherlands, Sweden, Norway, and Italy). Geopolitical Stance: India explicitly condemned recent regional attacks on the UAE, praising its "restraint" and offering support for regional peace efforts. 2. Key Pillar: Strategic Energy Security To fortify India's energy cushions against external shocks, the Abu Dhabi National Oil Company (ADNOC) and Indian Strategic Petroleum Reserves Ltd. (ISPRL) signed two major MoUs: Strategic Reserves: Agreement for storing up to 30 million barrels of crude oil in India's underground strategic reserves. Reciprocal Storage: Exploration of potential Indian crude oil storage facilities within the UAE. Supply Stability: Concluded pacts on long-term LNG (Liquefied Natural Gas) supplies to diversify India’s fuel basket. 3. Key Pillar: Strategic Defence Cooperation Framework An institutional framework proposed during January was officially concluded to upgrade the bilateral security relationship: Industrial & Tech Alliance: Deepened collaboration in defence manufacturing, technology transfer, and joint industrial production. Operational Interoperability: Increased scale of joint military exercises, specialized training, and special forces operations. Modern Security Domains: Enhanced intelligence sharing and coordination in maritime security, cyber-defence, and information exchange. 4. Key Analytical Takeaways The "West Asia" Pivot: Amid the broader West Asia crisis (which dragged down India's regional trade volumes in April 2026), these pacts show India actively using deep bilateral diplomacy to insulate its vital energy supply lines. Strategic Depth via Storage: Relying on the UAE to fill India's commercial and strategic petroleum reserves provides a cushion against price volatility and transit chokepoint disruptions. Beyond Buyer-Seller Relations: The shift from simple oil procurement to joint defence manufacturing and cyber-warfare capabilities marks a transition from a transactional relationship to a comprehensive strategic partnership.

India’s April 2026 merchandise exports grew 14% to $43.6B. Driven by market diversification and strong services, the overall trade deficit fell 30% to $7.8B. Trade Performance 1. Data Merchandise Trade: Exports grew ~14% to $43.6 billion (vs $38.3B in April 2025); Imports rose to $71.9 billion. Services Trade: Exports jumped to $37.2 billion; Imports marginally dipped to $16.7 billion. Net Deficit: The overall trade deficit (Goods + Services) shrank by 30% to $7.8 billion, thanks to a strong services surplus cushioning the goods deficit. 2. Core Trends & Drivers Price Effect: Rising global commodity prices artificially boosted the nominal value of exports. Supply Resilience: Industry successfully maintained domestic supply chains despite global maritime bottlenecks. Market Diversification: Exporters hedged risks by shifting focus to non-traditional and historically smaller destinations. 3. Shift in Export Destinations India recorded massive growth spikes in alternate markets to counter traditional slowdowns: Asia-Pacific & Neighborhood: Sri Lanka (+215%), Singapore (+179%), Bangladesh (+64%), and Vietnam (+53%). Africa: Exports to Tanzania surged 158% to reach $1.2 billion. 4. Geopolitical Shock: West Asia Crisis Regional conflict heavily depressed trade volumes along traditional Middle Eastern/Red Sea routes: Exports to West Asia: Dropped 28% to $4.16 billion. Imports from West Asia: Fell 31.6% to $10.5 billion (reflecting lower/disrupted energy and raw material inflows). 5. Key Takeaways Services as a Macro Buffer: The widening gap in merchandise trade is systematically absorbed by India's structural strength in service exports, keeping the overall external balance stable. Volume vs. Value: Growth driven by global price inflation is a temporary cushion. Long-term export stability requires scaling up real cargo volumes, lowering logistics overheads, and expediting bilateral trade pacts. Transit Vulnerabilities: The sharp drop in West Asian trade underlines India's extreme exposure to strategic maritime chokepoints, stressing the urgency for viable, multi-modal transport corridors.

The recently released Periodic Labour Force Survey (PLFS) 2025 highlights important changes in India’s employment situation. Every year, nearly 7–10 million young Indians enter the labour market, making job creation and skill development critical for the country’s economic future. According to the report, India’s Labour Force Participation Rate (LFPR) reached 59%, while the unemployment rate remained low at 3%. Youth unemployment has also declined compared to 2024, showing improvement in both rural and urban areas. One of the biggest positive trends is the rise in women’s participation in the workforce. Female labour participation, especially in rural areas, increased steadily during 2025. The report also shows improvement in the quality of jobs, as regular salaried employment increased from 22% to 24%, while dependence on self-employment slightly declined. Women’s earnings also improved across salaried jobs, self-employment, and casual labour. However, gender wage gaps still remain a major concern. Women continue to earn less than men in most sectors. The report also points towards structural changes in the economy. Agriculture’s share in employment has declined, while manufacturing and services are creating more opportunities, especially for young people and women. Despite these positive developments, several challenges continue: Many graduates still struggle to find jobs after completing higher education. Only a small percentage of people have formal vocational or technical training. Women often leave the workforce because of childcare and household responsibilities. Around 25% of youth aged 15–29 belong to the NEET category (Not in Education, Employment, or Training). Experts suggest that India must focus on skill development, apprenticeships, women-friendly workplace policies, and expansion of stable salaried jobs to fully utilise its demographic dividend. Why is this important? Shows India’s employment and unemployment trends Highlights progress in women’s workforce participation Explains challenges in job creation and skill training Important for understanding India’s demographic dividend Key Points PLFS 2025 shows unemployment rate at 3%. Labour Force Participation Rate reached 59%. Women’s participation in workforce improved. Manufacturing and services sectors are growing. Skill gaps and NEET youth remain major concerns.

Evika Siliņa resigned as the Prime Minister of Latvia after her coalition government lost its majority in Parliament. The political crisis began when the left-leaning Progressives party withdrew support from the ruling coalition. This happened after Defence Minister Andris Sprūds was removed from his position following controversy over stray Ukrainian drones entering Latvian airspace. The drone incidents raised concerns about national security and border protection in Latvia, which shares regional security concerns because of the ongoing Russia-Ukraine conflict. Evika Siliņa’s resignation is significant because it comes only a few months before Latvia’s general elections. Political analysts believe the incident may affect public opinion and increase pressure on the next government to strengthen defence and security policies. Why is this important? Shows political instability in Latvia before elections Highlights security concerns linked to the Russia-Ukraine war Raises questions about airspace monitoring in European countries May influence Latvia’s future defence policies Key Points Latvian PM Evika Siliņa resigned. Coalition lost majority after partner party withdrew support. Defence Minister Andris Sprūds was removed over drone controversy. Ukrainian drones reportedly entered Latvian airspace. Resignation comes before Latvia’s general elections.

External Affairs Minister S. Jaishankar strongly criticised unilateral sanctions imposed by countries outside the United Nations framework during the BRICS Foreign Ministers’ Meeting held under India’s chairmanship. His remarks came as India awaits the decision of the United States on extending the waiver that allows India to continue importing Russian crude oil despite U.S. sanctions on Russia. Speaking at the BRICS meeting, Jaishankar said that sanctions not approved by the United Nations are “unjustified” and negatively affect developing countries. He stressed that dialogue and diplomacy are better solutions than pressure and coercive measures. The meeting was attended by Russian Foreign Minister Sergey Lavrov and Iranian Foreign Minister Abbas Araghchi, representing two countries heavily affected by U.S. sanctions. According to global shipping data, India’s imports of Russian oil increased sharply in May 2026. Indian refiners are buying more Russian oil because supplies from West Asia are facing disruptions due to tensions around the Strait of Hormuz. Reports suggest Russian oil imports reached around 1.96 million barrels per day in May, compared to 1.57 million barrels per day in April. The U.S. had earlier granted temporary waivers allowing countries like India to import oil from Russia and Iran due to the ongoing West Asia conflict. However, the waiver for Iran has already ended, and the Russian oil waiver is expected to expire soon. India has traditionally opposed unilateral sanctions that are not approved by the United Nations. At the same time, India also balances its foreign policy and energy needs carefully to protect national interests and ensure stable oil supplies for its large population. Why is this important? Highlights India’s independent foreign policy Shows the importance of energy security for India Reflects global tensions affecting oil markets Demonstrates BRICS cooperation on international issues Key Points India criticised non-UN sanctions at the BRICS meeting. S. Jaishankar called unilateral sanctions unjustified. India is waiting for the U.S. decision on the Russian oil waiver. Russian oil imports by India increased in May 2026. West Asia tensions are affecting global energy supplies.

India’s wholesale inflation, measured by the Wholesale Price Index (WPI), rose sharply to 8.3% in April 2026, the highest level in the last 3.5 years. The main reason behind this rise is the increase in crude oil and natural gas prices due to tensions in West Asia. According to data released by the Ministry of Commerce and Industry, WPI inflation was only 3.9% in March 2026. The sharp increase shows the growing impact of global events on the Indian economy. The biggest rise was seen in the crude oil and natural gas sector, where inflation touched 67.2% in April. Fuel and power inflation also increased to 24.7%. Experts say higher fuel prices increase transportation and production costs, which can later make everyday goods more expensive for consumers. Companies may also face lower profits if they are unable to pass these rising costs to customers. However, food inflation at the wholesale level remained low at around 2%, giving some relief. Why is this important? Shows the impact of global conflicts on India’s economy Higher fuel prices may increase prices of daily-use goods Could raise retail inflation in coming months May affect profits of manufacturing companies Key Points WPI inflation rose to 8.3% in April 2026. Highest wholesale inflation in 3.5 years. Crude oil and gas prices were the main reason. West Asia tensions affected global energy prices. Food inflation remained relatively low.

India has received a major boost in the seafood sector. The European Union (EU) has again allowed India to export aquaculture products like fish and shrimp to European countries from September 2026. Earlier, in 2024, the EU had removed India from its approved exporters list because of concerns related to the use of antibiotics and antimicrobials in food-producing animals. Now, India has proved that it follows EU safety rules. These rules do not allow harmful antimicrobial use for increasing animal growth or production. Aquaculture products include: Fish Shrimp and prawns Eels Fish products like caviar This decision is important because the EU is one of the biggest markets for Indian seafood exports. Why is this important? Good news for Indian seafood exporters Helps increase exports and income Creates more opportunities in fisheries sector Improves India’s image in global food safety standards Key Points India is back on the EU approved exporters list. Approval will apply from September 2026. India met EU rules on antimicrobial use. The EU is a major buyer of Indian seafood.

India has tightened sugar export rules by moving sugar from the “restricted” category to the “prohibited” category for exports until September 30, 2026. This means exporters generally cannot ship sugar abroad without special exemptions. Key points from the notification Export of raw, white, and refined sugar is banned. The restriction will remain in force till 30 September 2026. Some exceptions remain: Exports to the United States and European Union under quota systems (CXL and TRQ) Exports under the Advance Authorisation Scheme Government-to-government export deals Shipments already in process before the notification Why did the government take this step? The main reason is concern over lower-than-expected sugar production in the current 2025–26 sugar season. The Indian Sugar and Bio-energy Manufacturers Association (ISMA) had earlier estimated: Total sugar production: 324 lakh tonnes Sugar diverted for ethanol: 31 lakh tonnes Net sugar production: 293 lakh tonnes However, production later weakened in major sugar-producing states like: Maharashtra Uttar Pradesh This reduced the overall output outlook. What does this mean for India? The decision is mainly aimed at: Protecting domestic sugar availability Preventing price spikes in the local market Ensuring enough sugar supply for both consumers and ethanol blending programs India has increasingly been diverting sugarcane toward ethanol production as part of its fuel blending strategy, which also affects sugar availability. Possible impact Domestic sugar prices may remain more stable. Global sugar supply could tighten slightly because India is one of the world’s largest sugar exporters. Sugar mills may face reduced export opportunities, though ethanol production still offers revenue support.