07th January 2026

1. Government approves Nutrient-Based Subsidy rates for the rabi season
2. India’s economic growth projected at 6.9% for FY27 despite global headwinds, according to Ind-Ra
3. Former Union Minister Suresh Kalmadi passes away
4. Delhi government brings its financial management under the RBI framework through a landmark MoU
5. Rare galaxy frogs feared extinct after photo tourism disrupts their habitat
6. Education Minister Dharmendra Pradhan to release 41 new books on India’s classical languages
7. Prasar Bharati plans to resume Thadou language radio broadcasts in Manipur
8. German Chancellor Friedrich Merz schedules an official visit to India
9. Karur Vysya Bank reduces its base rate and benchmark prime lending rate

National News

1. Education Minister Dharmendra Pradhan released 55 rare literary works

• What
  • Education Minister Dharmendra Pradhan released 55 rare literary works representing India’s classical languages in New Delhi.
• Tell me more
  • The 55 books cover Tamil, Telugu, Malayalam, Kannada, and Odia.
  • These works were published by the Central Institute of Indian Languages.
  • Thirteen additional books and a Tirukkural Sign Language series were released by the Central Institute of Classical Tamil.
  • The Minister stated that education from pre-school to advanced research should be in Indian languages.
  • An initiative is underway to provide education up to class five in the mother tongue.
  • Engineering and medical science courses have been designed in Indian languages.

2. German Chancellor’s first India visit

• What
  • German Chancellor Friedrich Merz will undertake a two-day official visit to India on January 12–13, 2026 to review and advance the India–Germany Strategic Partnership across multiple sectors.
• Tell me more
  • Both leaders will review progress in the India–Germany Strategic Partnership, which completed 25 years last year.
  • Discussions will cover trade, investment, technology, education, skilling, mobility, defence, security, science, research, and green development.
  • The visit follows the first Modi–Merz meeting at the G7 Leaders’ Summit in Canada on June 17, 2025.
  • Friedrich Merz will first arrive in Ahmedabad, where Prime Minister Narendra Modi will receive him, before travelling to Bengaluru.

Source: IE

State News

1. Delhi–RBI Banking Framework MoU

• What
  • The Delhi government signed a Memorandum of Understanding with the Reserve Bank of India to act as banker, debt manager, and financial agent.
• Tell me more
  • In simple terms, this MoU means the Delhi government will now manage its money through the Reserve Bank of India in a formal and structured way.
  • The agreement brings Delhi under the RBI banking, cash management, and debt framework for the first time.
  • The MoU allows market borrowings through State Development Loans. State Development Loans are instruments used by states for market borrowing.
  • It provides access to low-cost liquidity facilities within rules prescribed by the Government of India and the RBI Act.
  • In terms of Section 20 of the RBI Act 1934, RBI has the obligation to undertake the receipts and payments of the Central Government and to carry out the exchange, remittance and other banking operations, including the management of the public debt of the Union.
  • State Government transactions are carried out by RBI in terms of the agreement entered into with the State Governments in terms of section 21 A of the Act.

Source: NOA ET

2. Thadou radio broadcast revival by Prasar Bharati

• What
  • Public broadcaster Prasar Bharati sought inputs for resuming live Thadou language radio broadcasts from Akashvani Imphal.
• Tell me more
  • The move follows a request from the Thadou tribe body to restart live programming stopped after ethnic violence in Manipur.
  • Thadou Inpi Manipur is the representative body of the Thadou tribe.
  • Thadou Convention held in Guwahati in November 2024 released a ten-point declaration on tribal identity.
  • Thadou is one of the 29 indigenous tribes of Manipur recognised under the 1956 Presidential Order.
  • Census 2011 recorded the Thadou population at 2,15,913 in Manipur.

Source: NDTV

Banking and Economy

1. Karur Vysya Bank cuts rates

• What
  • Karur Vysya Bank announced a reduction in its Base Rate and Benchmark Prime Lending Rate, effective January 07, 2026.
• Tell me more
  • This means loans linked to these rates will now be available at lower interest rates.
  • The Base Rate was revised downward from 11.15% to 10.70%.
  • The Benchmark Prime Lending Rate was reduced from 16.15% to 15.70%.
  • Base Rate and Benchmark Prime Lending Rate are basic interest rates used by banks to decide loan pricing.

Source: HBL

GDP Forecasts

1. India Ratings and Research projected India GDP growth outlook for FY27

• What:
  • India Ratings and Research projected India’s GDP growth at 6.9% year-on-year in FY27, following an estimated 7.4% growth in FY26, supported by domestic policy reforms and demand resilience.
• Tell me more:
  • Growth support comes from income tax cuts in the FY26 Budget, GST rationalisation, and free trade agreements with Oman, the United Kingdom, and New Zealand.
  • CPI inflation is projected at 3.8% and WPI inflation at 2.3% in FY27.
  • Fiscal deficit is estimated at 4.1% of GDP, with lower net market borrowings.
  • Rupee is projected to average 92.26 per US dollar in FY27.

Source: N18

Agriculture and Rural Development

1. Updated Nutrient-Based Subsidy rates for Rabi

• What:
  • The Government of India announced revised Nutrient-Based Subsidy rates for the Rabi season 2025–26 to ensure affordable fertilizers and promote balanced nutrient use for soil health and crop productivity.
• Tell me more:
  • The Nutrient-Based Subsidy scheme, effective since April 1, 2010, links subsidies to nutrient content such as nitrogen, phosphorus, potassium, and sulphur.
  • Subsidies apply to Phosphatic and Potassic fertilizers, including DAP and NPKS grades, from October 1, 2025 to March 31, 2026.
    • Di-Ammonium Phosphate subsidy rose to ₹29,805 per metric tonne for Rabi 2025–26 from ₹21,911 per metric tonne in Rabi 2024–25.
  • The estimated budget requirement for Rabi 2025–26 is about ₹37,952.29 crore, around ₹736 crore higher than Kharif 2025.

Source: PIB

Miscellaneous

1. Passing of Suresh Kalmadi

• Former Pune Member of Parliament, Union minister, and Congress leader Suresh Kalmadi passed away in Pune after a prolonged illness at the age of 81.

Source: TOI

2. Galaxy Frogs Fear Extinction

• What
  • A group of endangered galaxy frogs in Kerala rainforests are missing and presumed dead after photographers reportedly destroyed their microhabitats for photographs.
• Tell me more
  • The species, identified as Melanobatrachus indicus, lives under fallen logs in the Western Ghats rainforest.
  • Melanobatrachus indicus is the only species in its family and is fingertip-sized.

Source: TG

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