Current Affairs for 16 January 2026

Reinforcing Equity on Campuses: UGC’s New Push Against Caste Discrimination in Higher Education

Why in the News?

The University Grants Commission (UGC) has notified revised regulations aimed at tackling caste-based discrimination in higher education institutions, introducing stronger compliance requirements, clearer institutional responsibility, and enforceable penalties for non-compliance.

Background: Caste Discrimination in Higher Education

• Caste-based discrimination has remained a persistent challenge in India’s higher education system, disproportionately affecting students from Scheduled Castes (SCs), Scheduled Tribes (STs), and Other Backward Classes (OBCs).
• Issues such as social exclusion, academic marginalisation, biased evaluation, hostel segregation, and lack of effective grievance redressal have been repeatedly highlighted by committees, court judgments, and civil society reports.
• In response, the UGC had introduced anti-discrimination regulations in 2012, mandating the establishment of Equal Opportunity Cells in universities.
• However, weak implementation, limited monitoring, and evolving socio-academic realities exposed the need for a more robust and accountable regulatory framework.

University Grants Commission (Promotion of Equity) Regulations, 2026

• The University Grants Commission (Promotion of Equity in Higher Education Institutions) Regulations, 2026 replace the earlier framework.
• The regulations aim to institutionalise equity, strengthen grievance redressal, and embed accountability within university governance structures.
• A key departure from earlier rules is the explicit fixing of responsibility on institutional leadership, making heads of institutions directly accountable for ensuring compliance.
• The regulations seek to move beyond symbolic inclusion towards structural mechanisms that deter discrimination and enable timely redressal.

Expanded Definition of Discrimination

• Caste-based discrimination is defined as any unfair or biased treatment of SCs, STs, and OBCs solely on the basis of caste or tribe.
• The scope now includes both overt and subtle forms of discrimination that undermine equality, dignity, or access to education.
• The regulations also recognise intersectional discrimination based on religion, race, gender, place of birth, and disability.
• This broader framing aligns the regulations with Articles 14, 15, and 21 of the Constitution, reinforcing equality, non-discrimination, and dignity.
• However, unlike the 2012 regulations, the 2026 framework does not explicitly list discrimination during admissions or evaluation processes, which has attracted academic criticism.

Inclusion of OBCs and Removal of Penal Clause

• One of the most significant changes is the explicit inclusion of OBCs within the ambit of caste-based discrimination.
• Earlier draft regulations had excluded OBCs, triggering widespread opposition from scholars, student organisations, and social justice groups.
• The final regulations also remove the proposed penal clause for “false complaints”, which was criticised for discouraging victims from reporting discrimination.
• The removal of this clause strengthens access to justice, ensuring that fear of reprisal does not silence genuine grievances.

Institutional Mechanisms: EOCs and Equity Committees

• Every higher education institution must establish an Equal Opportunity Centre (EOC) to promote equity, inclusion, and social justice.
• Under each EOC, an Equity Committee must be constituted, chaired by the head of the institution.
• The committee must include representatives from SCs, STs, OBCs, women, and persons with disabilities, ensuring diverse representation.
• Equity Committees are required to meet at least twice a year, while EOCs must submit bi-annual reports.
• Institutions must also submit annual compliance reports to the UGC, enabling systematic oversight.

Monitoring and Enforcement Mechanism

• The UGC will constitute a national-level monitoring committee with representatives from statutory bodies, commissions, and civil society.
• This body will assess compliance, examine cases of discrimination, and recommend corrective and preventive measures.
• Non-compliance can invite stringent penalties, including:
  • Debarment from UGC schemes
  • Prohibition on offering degree or online programmes
  • Removal from the list of recognised higher education institutions
• This marks a clear shift from advisory norms to enforceable regulation.

Significance and Way Forward

• The 2026 regulations represent a stronger institutional response to caste-based discrimination in higher education.
• By expanding coverage, strengthening monitoring, and removing deterrents to complaint filing, the UGC has reinforced constitutional values of social justice and inclusion.
• However, effective implementation will depend on institutional capacity, sensitivity training, transparent grievance redressal, and regular audits.
• For lasting impact, regulatory reform must be complemented by cultural and attitudinal change within academic spaces.

India’s Export Readiness Landscape: Export Preparedness Index 2024

Why in News ?

Recently, NITI Aayog released the Export Preparedness Index (EPI) 2024, assessing the export readiness and performance of India’s States and Union Territories (UTs) with the objective of strengthening India’s subnational contribution to global trade.

Background: Need for Subnational Export Competitiveness

India’s ambition to emerge as a major global trading nation depends not only on national-level trade policies but also on the export capabilities of its States and Union Territories. Given the vast diversity in economic structures, industrial bases, infrastructure availability, and governance capacity across regions, a uniform export strategy is insufficient.

To address this, NITI Aayog introduced the Export Preparedness Index in 2020 as a diagnostic and benchmarking tool to:

• Identify regional strengths and gaps
• Promote competitive federalism
• Enable evidence-based policymaking for exports

The Export Preparedness Index 2024 is the fourth edition of this index, reflecting India’s evolving export ecosystem.

What is the Export Preparedness Index (EPI) 2024 ?

• The Export Preparedness Index (EPI) 2024 is a comprehensive assessment framework developed by NITI Aayog to evaluate the export readiness of India’s States and Union Territories.
• It measures how effectively subnational governments are enabling exports by considering infrastructure, policies, institutional support, and actual export performance.
• The index recognises that States and UTs are critical drivers of India’s export growth and play a decisive role in achieving national trade targets.

Framework and Coverage of EPI 2024

The EPI 2024 is structured around four major pillars, further divided into 13 sub-pillars and 70 indicators, ensuring a granular and holistic assessment.

Four Pillars and Their Weightage

1. Export Infrastructure (20%)
   1. Physical infrastructure
   2. Logistics connectivity
   3. Trade facilitation facilities
2. Business Ecosystem (40%)
   1. Access to finance
   2. MSME support
   3. Innovation and entrepreneurship
   4. Ease of doing business
3. Policy and Governance (20%)
   1. State export policies
   2. Institutional mechanisms
   3. Trade promotion initiatives
4. Export Performance (20%)
   1. Merchandise and services exports
   2. Growth trends and diversification

This structure ensures a balanced evaluation of both enablers and outcomes of export activity.

Classification of States and Union Territories

To ensure fair comparison, States and UTs are categorised based on size and structural characteristics:

• Large States
• Small States
• North Eastern States
• Union Territories

Within each category, regions are further classified into three groups:

• Leaders: High export preparedness and strong enabling ecosystems
• Challengers: Moderate preparedness with scope for improvement
• Aspirers: Early-stage export ecosystem development

This classification encourages peer learning and targeted policy interventions.

Leading Performers in Export Preparedness Index 2024

Under EPI 2024, the following States and UTs have emerged as leading performers in their respective categories:

Large States

• Maharashtra
• Tamil Nadu
• Gujarat
• Uttar Pradesh
• Andhra Pradesh

Small States, North Eastern States & Union Territories

• Uttarakhand
• Jammu and Kashmir
• Nagaland
• Dadra and Nagar Haveli & Daman and Diu
• Goa

These regions have demonstrated strong institutional frameworks, improved infrastructure, and sustained export growth.

Significance and Way Forward

The Export Preparedness Index 2024 strengthens cooperative and competitive federalism by motivating States and UTs to enhance their export ecosystems.

It provides a roadmap for:

• Improving logistics and trade facilitation
• Strengthening MSME participation in exports
• Aligning state-level policies with national trade objectives

Going forward, focused capacity building, sector-specific export strategies, digital trade infrastructure, and integration with global value chains will be essential for improving India’s overall export competitiveness.

NPS Vatsalya Scheme

Why in News?

The Pension Fund Regulatory and Development Authority (PFRDA) has issued the NPS Vatsalya Scheme Guidelines, 2025, operationalising a new contributory pension framework aimed exclusively at minors, with the objective of strengthening long-term financial security from an early age.

Background: Expanding Pension Coverage in India

• India’s pension landscape has traditionally focused on formal sector employees, leaving large sections of the population under-covered.
• Schemes such as National Pension System (NPS) and Atal Pension Yojana have expanded coverage, but long-term savings often begin late in life.
• Recognising the benefits of early financial planning, PFRDA has introduced a pension-oriented savings scheme specifically designed for children, allowing compounding benefits over decades.

What is the NPS Vatsalya Scheme?

• NPS Vatsalya is a contributory savings and long-term financial security scheme designed exclusively for minors.
• It operates under the broader architecture of the National Pension System (NPS) and is regulated by PFRDA.
• The scheme enables guardians to create a pension corpus in the name of a child, ensuring early entry into formal retirement savings.

Key Features of the NPS Vatsalya Scheme

Eligibility and Account Operation

• Open to all Indian citizens, including NRI and OCI minors, below 18 years of age.
• The account is opened in the name of the minor and operated by a guardian until the child attains adulthood.

Contributions

• Minimum initial and annual contribution: ₹250
• No maximum limit on contributions
• Contributions may also be gifted by relatives or friends, promoting family-supported savings.

Pension Fund Selection

• The guardian can choose any one pension fund registered with PFRDA, offering flexibility in fund management.

Partial Withdrawal and Flexibility Provisions

• Partial withdrawal is permitted after completion of three years from the date of account opening.
• Up to 25% of the minor’s own contributions (excluding returns) can be withdrawn.
• Withdrawals are allowed for specific purposes such as:
  • Education
  • Medical treatment
  • Specified disabilities
• Withdrawal frequency:
  • Twice before attaining 18 years
  • Twice between 18 and 21 years, subject to conditions

These provisions balance long-term savings discipline with flexibility for essential life needs.

Significance and Way Forward

• NPS Vatsalya promotes a culture of early financial planning, leveraging long-term compounding to build retirement security.
• It strengthens financial inclusion by integrating minors into India’s formal pension ecosystem.
• The scheme complements broader pension reforms aimed at widening coverage beyond employment-based models.
• For effective uptake, awareness campaigns, digital onboarding, and integration with existing child-focused financial products will be essential.

A New Era of Ultra-High-Paying Jobs

Context

Currently, ultra-high-paying placements have become the talk of the town on Indian Institutes of Technology (IIT) campuses, as pay offers far exceed common imagination. Annual packages of crores of rupees being offered to new B.Tech graduates are attracting the attention of not only students but also parents and the education community.

Related Highlights

• Recently, Netherlands-based global trading company ‘Optiver’ offered a package of ₹2.5 crore per annum to a computer science student at IIT Hyderabad.
• Just last year, an IIT Madras student was offered ₹4.3 crore per annum by the American Wall Street firm Jane Street for the role of a quantitative trader. Clearly, high-paying placements at IITs are no longer the exception but have become an emerging trend.
• In 2021, the number of campus offers with packages exceeding ₹1 crore was approximately 60, while by 2025, this number increased to approximately 180. Offers exceeding ₹2 crore may be low now, but their growth rate is rapid, indicating that this trend is becoming sustainable.
• In the current placement season, several financial trading companies made offers ranging from ₹2.2 crore to ₹3.6 crore per annum on Day 1 at IIT Bombay. However, this is happening at a time when discussions about the uncertainty surrounding traditional jobs due to Artificial Intelligence (AI) are common.

Companies with High-Paying Offers

• Companies like Optiver, Jane Street, Hudson River Trading (HRT), Da Vinci Derivatives, NK Securities, Rubrik, as well as Citadel Securities, IMC Trading, Graviton Research, APT Portfolio, Atlas Research, Quadeye, Quantbox, and The Trade Desk also fall into this category.
• These companies offered these offers for roles such as trading, quantitative trader, algorithmic developer, and quant researcher.
• Nearly 70% of these companies repeatedly recruit from IITs. While previously, their recruitment was primarily limited to the older IITs, institutions like IIT Hyderabad, IIT (BHU), and IIIT Allahabad and Raipur have now joined their regular talent pool.

Calculating High Pay Offers

• The reason behind these high packages lies in the business model of these companies. Most QT and HFT firms are medium-sized proprietary trading companies that generate revenue through price arbitrage between markets.
• These companies earn a meager profit of just $0.01 per share by buying and selling shares on platforms like NASDAQ and the New York Stock Exchange. However, when millions of such trades occur in seconds, the total profit becomes extremely high.
• In HFT companies, if a software engineer reduces a program's execution time by even a few microseconds, it can generate millions of dollars in additional profit each month. Because the engineer's contribution directly translates into profit, companies are able to offer high salaries and bonuses.
• Low overhead and small teams of 200–500 employees allow these firms to distribute a significant portion of their trading profits to employees. In many cases, up to 40% of a ₹2 crore package is allocated as performance bonuses.

Skills and Roles

• These companies primarily offer three types of roles:
  • Quantitative Trader: They make decisions based on game theory and probability on the live trading floor.
  • Quantitative Researcher: They develop trading strategies using advanced statistics, stochastic calculus, and machine learning by discovering patterns in historical data.
  • Low-Latency Developer: They develop ultra-fast trading engines and specialize in areas such as memory management and concurrency.
• These roles require a strong grasp of algorithms, low-level systems, probability, linear algebra, and game theory. In-depth knowledge of financial markets is not mandatory, but an understanding of market microstructure and derivatives is an added advantage.

Selection Process and Preparation

• Prior work experience is not required for these positions. Companies seek young candidates with exceptional mathematical ability, programming proficiency, and the ability to maintain composure under pressure.
• The selection process often involves several rigorous stages, including brainteasers, probability-based puzzles, and low-latency C++ coding tests.
• Most companies prefer a pre-placement offer (PPO), which requires a rigorous eight-week internship.

Foreign vs. Indian Packages

• Total compensation (CTC) includes base salary, bonus, relocation or sign-on bonus, RSUs, and profit-sharing. Since most roles are in expensive cities like Amsterdam, London, New York, or Hong Kong, these packages can range from ₹2 crore or more in Indian currency.
•  Packages in the range of ₹60 lakh to ₹1.2 crore offered in India can often be considered comparable to foreign offers, considering the cost of living and taxes.

Opportunities and Challenges

• These jobs offer both financial appeal and intellectual satisfaction, especially for students interested in solving math and probability brainteasers.
• However, the live trading environment is extremely stressful, where even the smallest mistake can lead to significant losses. There's a risk of burnout, and career opportunities can often be limited to fintech.

Conclusion

• The current times present a unique talent paradox. While AI is limiting traditional IT jobs, specialized human skills are more valuable than ever. The quant and high-frequency trading sectors are the most obvious examples.
• With a ₹2 crore package, immense pressure also comes with a requirement for composure and resilience. Long-term success comes only to those who can combine talent with balance and patience.

India AI Financial Reporting Compliance Challenge

Context

Recently, the National Financial Reporting Authority (NFRA) in collaboration with India AI launched the India AI Financial Reporting Compliance Challenge.

About the India AI Financial Reporting Compliance Challenge

• Launched in partnership with the National Financial Reporting Authority (NFRA), this challenge seeks to harness the power of artificial intelligence (AI) to improve the quality of financial reporting in India, streamline compliance monitoring, and enable effective regulatory decision-making.
• The initiative aims to build a scalable regulatory technology infrastructure to protect public trust and investor interests.
• This challenge invites innovators to develop solutions that promote transparency in the financial ecosystem, simplify compliance processes, and protect privacy.

Objective

• The main objective of this challenge is to develop an AI-powered engine that can:
  • Extract content, tables, and financial data from multi-format documents (scanned and digital)
  • Divide documents into logical sections
  • Verify their completeness and compliance based on pre-defined frameworks
• This solution will structure document metadata and support search, analysis, visualization, and indexing, ensuring efficient retrieval and reference availability of unstructured source data.

Expected Output

• Compliance Verification Report Generator: An engine to test compliance against various regulations (e.g., RBI guidelines, SEBI norms) on large datasets and provide clear and interpretable reports on compliance and non-compliance for each provision.
• Automated Analytics Engine: A tool to automatically collect and analyze data on financial performance, risk indicators, audit history, and governance structures.
• Early Detection Tool: A system to identify and analyze real-time information related to news, enforcement actions, legal cases, and whistle-blower allegations.
• NFRA-Specific Insight Bot: An AI-enabled chatbot that provides intuitive query resolution through structured metadata and content chunking based on NFRA documents.
  • This bot will also assist in compliance analysis by combining reports, precedents, rules, and real-time regulatory signals, ensuring strict privacy and security in accordance with Indian and international data protection standards.

Applicants

• Indian Company: An Indian company registered under the Companies Act, with at least 51% stake held by Indian citizens or persons of Indian origin.
• Start-up: A start-up defined as per the latest notification from the Department for Promotion of Industry and Internal Trade (DPIIT), information on which is available on the Startup India portal.

Key Stages

• Stage 1: Initial Screening and Technical Evaluation
• Stage 2: Up to 10 selected teams will have the opportunity to participate in a virtual challenge round. Each team will be awarded ₹5 lakh and will be required to refine their solution on sample data provided through AIKosh.
• Stage 3: Up to 3 selected teams may be invited for a 5-day on-premise development round in New Delhi.
• One of these teams may receive a two-year work contract worth up to ₹1 crore to deploy their solution for NFRA.

Section 17A and the Anti-Corruption Dilemma

Why in News ?

A two-judge Bench of the Supreme Court of India has delivered a split verdict on the constitutional validity of Section 17A of the Prevention of Corruption Act, 1988, which mandates prior government approval before initiating enquiries or investigations against public servants for actions taken in official capacity. Due to divergent judicial opinions, the matter has been referred to the Chief Justice of India (CJI) for the constitution of a larger Bench.

Addressing Policy Paralysis in Governance

Section 17A was inserted in 2018 to address concerns of policy paralysis, where civil servants feared investigative harassment for bona fide administrative decisions. The provision was premised on the belief that excessive scrutiny could discourage officers from taking bold or innovative decisions in public interest.

Protecting the “Steel Frame” of India

Justice K V Viswanathan emphasised that civil servants constitute the “Steel Frame of India,” a phrase attributed to Sardar Vallabhbhai Patel. He cautioned that without safeguards, honest officers may adopt a risk-averse “play-it-safe” approach, impairing governance and national development.

Constitutional Defect and the Constructive Interpretation

Justice Viswanathan, while upholding Section 17A, acknowledged a critical flaw:
the power to grant or deny approval rests with the executive itself, which could compromise the independence of corruption investigations.

Independent Screening as a Safeguard

To preserve the provision’s constitutionality, he adopted a constructive interpretation, holding that:

• Prior approval is valid only if complaints are independently screened
• The Lokpal (Centre) and Lokayuktas (States) must assess allegations before approval is granted

Proposed Mechanism

• Police forward requests for approval to the government
• The government refers them to the Lokpal/Lokayukta
• A preliminary inquiry by the independent body determines prima facie merit
• If merit exists, approval must follow

This approach aims to balance administrative autonomy with anti-corruption accountability.

Section 17A as a Shield for the Corrupt

Justice B V Nagarathna took a sharply contrasting view, holding Section 17A to be unconstitutional.

Blocking Investigation at the Threshold

She argued that the provision:

• Prevents even preliminary enquiries
• Undermines the core objective of the Prevention of Corruption Act
• Protects the corrupt rather than honest officials

Conflict of Interest in Government Approval

Justice Nagarathna rejected the assumption that the government can act impartially when allegations involve senior officials or political leadership, highlighting the risk of executive bias.

Violation of Equality and Rule of Law

Justice Nagarathna found Section 17A violative of Article 14 (Right to Equality):

• Protection applies only to officials involved in “recommendations or decisions”
• Lower-level officials performing clerical or procedural functions receive no such protection

She also warned that the provision gives the government a “Damocles’ sword” over public servants, enabling selective approvals and political control.

Divergent Readings of Supreme Court Precedents

The split verdict reflects differing interpretations of landmark rulings:

Justice Nagarathna’s View

• Section 17A is “old wine in a new bottle”
• Revives barriers struck down in Vineet Narain v. Union of India and Subramanian Swamy v. CBI
• Any fetter on preliminary enquiry undermines effective investigation

Justice Viswanathan’s View

• Earlier rulings targeted rank-based discrimination and executive control
• Section 17A applies uniformly to all public servants
• Independent scrutiny via Lokpal cures constitutional defects

The Core Constitutional Conflict

The case highlights a fundamental dilemma in governance:

• How to protect honest decision-making without
• Diluting the effectiveness of anti-corruption enforcement

The final resolution now rests with a larger Bench, whose ruling will shape the future of administrative accountability and corruption control in India.

Exploring Life at Extremes: Marine and Space Biotechnology as India’s Next Innovation Frontier

Why in News ?

Emerging research in marine and space biotechnology is drawing global attention for its potential to harness life forms from extreme environments such as deep oceans and outer space to generate new biological knowledge, advanced materials, and sustainable manufacturing processes.

Understanding Marine and Space Biotechnology

• Marine biotechnology focuses on microorganisms, algae, invertebrates, and other marine life adapted to high pressure, salinity, low light, and extreme temperatures.
• These organisms are studied to develop bioactive compounds, enzymes, biomaterials, food ingredients, pharmaceuticals, and biostimulants.
• Space biotechnology examines how biological systems—microbes, plants, animals, and human cells—respond to microgravity, radiation, and confined environments.
• Insights from space biology support innovations in healthcare, materials science, life-support systems, and long-duration space missions.

Why Marine and Space Biotechnology Matters for India ?

• India has an extensive coastline of over 11,000 km and an Exclusive Economic Zone (EEZ) exceeding two million sq km, offering access to vast marine biodiversity.
• Despite this, India’s share in global marine biotechnology outputs remains low, indicating significant untapped potential.
• Marine biomanufacturing can generate new sources of food, energy, chemicals, and biomaterials, while reducing pressure on land, freshwater, and agriculture.
• Space biotechnology is critical for India’s expanding space ambitions, enabling safe food production, human health management, and biological manufacturing in extreme environments.
• Together, these domains can help position India as a future-ready leader in sustainable biomanufacturing.

India’s Current Position in Marine and Space Biotechnology

• India’s marine biomass production, including seaweed, is limited to around 70,000 tonnes annually, leading to continued imports of agar, carrageenan, and alginates used in food, pharmaceuticals, cosmetics, and medical products.
• Policy initiatives such as the Blue Economy agenda, Deep Ocean Mission, and BioE3 aim to build integrated marine biomanufacturing ecosystems.
• A small group of private firms—such as Sea6 Energy and ClimateCrew—along with research institutions like ICAR–Central Marine Fisheries Research Institute, are exploring scale-up pathways.
• In space biotechnology, the Indian Space Research Organisation (ISRO) is advancing research on microgravity biology involving microbes, algae, and life-support systems.
• However, private-sector participation remains limited, reflecting the nascent stage of the ecosystem.

Global Advances in Marine and Space Biotechnology

• The European Union is investing heavily in marine bioprospecting, algae-based biomaterials, and bioactive compounds, supported by shared research infrastructure such as the European Marine Biological Resource Centre.
• China has rapidly scaled seaweed aquaculture and marine bioprocessing to strengthen its bioeconomy and industrial biotechnology base.
• In space biotechnology, the United States leads through NASA and the International Space Station, where experiments on microbes, protein crystallisation, stem cells, and life-support systems advance drug discovery, regenerative medicine, and long-duration human spaceflight.

The Way Forward for Marine and Space Biotechnology

• Marine and space biotechnology represent largely untapped strategic frontiers where early movers can secure long-term technological and economic advantages.
• The principal risk lies in slow, fragmented research and development efforts.
• India needs a dedicated national roadmap with clear priorities, timelines, and outcomes to coordinate research institutions, industry, and government agencies.
• Focused investment, public–private partnerships, and international collaboration can accelerate innovation and translation into commercial applications.