Current Affairs for 28 February 2026

Pakistan–Afghanistan Tensions: Historical Fault Lines Behind the Latest Escalation

Why in News?

Pakistan and Afghanistan have entered a sharp new phase of hostilities after Pakistan carried out airstrikes in Kabul and other provinces following a cross-border attack on its troops. Pakistan’s Defence Minister described the situation as an “open war” with the Taliban-led Afghan government.

Islamabad has accused Kabul of sheltering militant groups responsible for attacks inside Pakistan. However, the roots of tension between the two neighbours go far deeper, stretching back to 1947 and shaped by history, geopolitics, and unresolved border disputes.

Background and Context

Since Pakistan’s creation in 1947, relations with Afghanistan have been marked by distrust and confrontation.

Major historical phases include:

• Soviet intervention in Afghanistan (1979–1989)
• US-led intervention (2001–2021)
• Taliban’s return to power in 2021

Throughout these upheavals, Pakistan has played a significant role in Afghan political developments, often backing resistance groups or the Taliban. Despite this involvement, bilateral mistrust has persisted.

Regime Changes in Afghanistan: A Turbulent Political History

End of Monarchy and Communist Rule (1973–1989)

Afghanistan’s monarchy ended in 1973. A nationalist regime was followed by communist rule backed by the Soviet Union.

In 1979, the Soviet Union intervened militarily. Pakistan supported Afghan Mujahideen factions during this period.

Najibullah and Collapse (1989–1992)

After Soviet withdrawal, President Najibullah attempted to stabilise the country. His government collapsed in 1992, triggering civil war.

Civil War and First Taliban Rule (1992–2001)

The Taliban emerged in 1994 and captured Kabul in 1996. Pakistan was one of the few countries to recognise the Taliban regime.

US Intervention and Islamic Republic (2001–2021)

Following the September 11 attacks, the United States invaded Afghanistan, overthrowing the Taliban.

A new Islamic Republic was established but struggled with insurgency and corruption.

Taliban Return (2021)

After the US withdrawal in August 2021, the Taliban regained full control. Pakistan initially welcomed the development, expecting strategic alignment.

However, tensions resurfaced as cross-border militancy continued.

Persistent Fault Lines in Pakistan–Afghanistan Relations

1. The Durand Line Dispute

The most enduring source of tension is the Durand Line.

The Durand Line: A Historical Flashpoint

The 2,640-km Durand Line was drawn in 1893 by Sir Mortimer Durand between British India and Afghanistan.

• It split Pashtun tribal lands.
• Initially meant as a boundary of influence, not a permanent international border.
• Pakistan inherited it in 1947 as its western boundary.

Afghanistan has consistently refused to formally recognise the Durand Line as an international border.

It even opposed Pakistan’s admission to the United Nations in 1947 on this issue.

In 2018, Afghanistan objected when Pakistan merged its Tribal Areas into Khyber Pakhtunkhwa, reiterating its rejection of the border’s finality.

The unresolved border dispute fuels recurring clashes and accusations of cross-border militant movement.

2. Cross-Border Militancy

Pakistan accuses the Taliban government of sheltering anti-Pakistan militant groups.

Afghanistan, in turn, accuses Pakistan of interference in its internal affairs.

Militant safe havens and border management remain major security flashpoints.

3. Trade and Transit as Strategic Leverage

Afghanistan is landlocked and dependent on transit routes through Pakistan.

The Karachi port route is economically vital.

Disputes have arisen over:

• Transit permissions
• Restrictions on goods
• Access for Indian exports via Wagah

Afghanistan views such restrictions as political coercion.

4. The India Factor

India’s developmental presence in Afghanistan — infrastructure, education, and humanitarian assistance — has shaped Pakistan’s security concerns.

Pakistan fears strategic encirclement by India and Afghanistan.

Recent Taliban outreach to India has heightened Islamabad’s suspicion.

5. Mutual Resentment

Afghans often resent Pakistan’s historical involvement in their domestic politics.

Pakistan argues it has borne heavy costs:

• Hosting millions of Afghan refugees
• Supporting resistance movements during Soviet and US interventions

This mutual distrust continues to define bilateral ties.

Strategic and Regional Implications

1. Regional Instability: Escalation risks destabilising South and Central Asia.
2. Militant Resurgence: Open hostilities could create space for extremist groups.
3. Impact on India: India’s security and connectivity projects may be affected.
4. Refugee Flows: Renewed violence may trigger displacement.
5. Great Power Interests: China, Russia, Iran, and the US closely monitor developments due to regional stakes.

Significance for India

• Stability in Afghanistan is critical for regional connectivity initiatives.
• India must balance humanitarian engagement with strategic caution.
• Escalation may affect projects linking South Asia to Central Asia.

India traditionally supports an Afghan-led, Afghan-owned peace process while avoiding direct involvement in internal conflicts.

Sky Sting BVRAAM: Strengthening India–Israel Air Combat Cooperation

Why in News?

During the Prime Minister’s second State visit to Israel, discussions have advanced regarding India’s potential acquisition of the Israeli-origin ‘Sky Sting’ beyond-visual-range air-to-air missile (BVRAAM) for the Indian Air Force (IAF).

The move signals deepening defence cooperation under the India–Israel Special Strategic Partnership framework.

What is Sky Sting Missile?

The Sky Sting is a 6th-generation Beyond-Visual-Range Air-to-Air Missile (BVRAAM) being developed by Rafael Advanced Defense Systems.

It is designed to give air forces the ability to engage enemy aircraft from very long distances, beyond the pilot’s visual range, thereby enhancing survivability and air superiority.

Key Technical Features

1. Long Engagement Range

• Reported range: Up to 250 km
• Enables interception of high-value targets such as AWACS, refuellers, and strike aircraft at extended distances.

2. Advanced Propulsion

• Equipped with a three-pulse solid-fuel rocket motor
• Allows sustained energy during mid-course and terminal phase
• End-game speeds exceeding Mach 5

3. Intelligent Seeker Technology

• Uses a radio-frequency seeker
• AI-driven target discrimination
• Jam-resistant technology
• Capable of operating effectively in dense electronic warfare environments

4. Two-Way Data Link

• Real-time communication between missile and pilot
• Allows mid-course corrections
• Enhances flexibility during dynamic engagements

5. Aircraft Compatibility

• Light enough for Tejas Mk1A
• Compatible with Su-30MKI platforms
• Potential integration with future Indian fighter aircraft

Why India Needs Advanced BVRAAM Capability

1. Evolving Aerial Threats

Modern air combat increasingly relies on long-range precision engagements rather than close dogfights.

2. Regional Security Environment

Neighbouring adversaries are inducting advanced fighter aircraft equipped with long-range air-to-air missiles.

3. Countering Stealth and EW Systems

Sky Sting is designed to engage stealth aircraft and operate in electronically contested environments.

4. Indigenous Platform Enhancement

Equipping Tejas Mk1A with cutting-edge missiles significantly enhances its combat effectiveness.

Background: India–Israel Defence Cooperation

India and Israel established full diplomatic relations in 1992. Since then, defence cooperation has emerged as a central pillar of bilateral ties.

Israel is among India’s top defence technology partners, supplying:

• Air defence systems
• UAVs and surveillance systems
• Missile technologies

Past collaborations include advanced missile systems and radar technologies integrated into Indian platforms.

Sky Sting negotiations reflect the next phase — moving towards joint development, advanced technology transfer, and high-end air combat systems.

Strategic Significance

1. Air Superiority Enhancement

Provides the IAF with long-range engagement dominance.

2. Technological Edge

Incorporates AI-enabled seeker and advanced propulsion — aligning with 6th-generation warfare concepts.

3. Force Multiplication

Enables lighter platforms like Tejas to carry high-impact weaponry.

4. Strengthening Strategic Partnership

Signals deepening India–Israel defence industrial cooperation.

5. Deterrence Signalling

Long-range BVRAAM capability enhances deterrence by complicating adversary air operations.

Broader Context: Future Air Combat Trends

Modern air warfare increasingly emphasises:

• Network-centric operations
• Beyond-visual-range engagements
• Electronic warfare dominance
• Integration of AI in weapons systems

The Sky Sting missile fits within this doctrinal shift, addressing challenges posed by stealth aircraft and advanced countermeasures.

Recasting India’s Growth Numbers: Understanding the New GDP Series with 2022–23 as Base Year

Why in News ?

The Government has released a new GDP series with 2022–23 as the base year, revising India’s FY26 growth to 7.6% and Q3 (Oct–Dec 2025) growth to 7.8%. The revised series replaces the earlier 2011–12 base year estimates.

Introduction of the New GDP Series

The Ministry of Statistics and Programme Implementation (MoSPI) has introduced the updated National Accounts Statistics (NAS) series with 2022–23 as the base year, replacing the 2011–12 base year.

Why Revise the Base Year ?

Base year revisions are periodically undertaken to:

• Reflect structural changes in the economy
• Incorporate new data sources
• Improve estimation techniques
• Align with global statistical standards

The last major revision occurred in 2015 when the base shifted to 2011–12.

Under the new series:  

• Q3 FY26 growth: 7.8%
• Full-year FY26 growth (Second Advance Estimate): 7.6%
• Earlier estimate under old series: 7.4%

Revisions in Growth Rates

The updated methodology has led to revisions in past GDP figures:

Quarterly Estimates (FY26)

• Q1: 6.7%
• Q2: 8.4%
• Q3: 7.8%

MoSPI has announced that a complete historical back series recalculation will be released by December 2026.

Major Methodological Improvements

1. Shift to Double Deflation

The most significant reform is the move from single-deflator to double-deflation methodology for estimating real Gross Value Added (GVA).

Earlier System – Single Deflator:

• Used one inflation index to deflate both inputs and outputs.
• Risk of distortion when input and output prices diverged.

New System – Double Deflation:

• Separately adjusts input and output prices.
• Produces more accurate real value-added estimates.
• Aligns with international best practices under the UN System of National Accounts.

2. Integration of New Data Sources

The revised series incorporates:

• GST data
• e-Vahan vehicle registration data
• Annual Survey of Unincorporated Sector Enterprises (ASUSE)
• Periodic Labour Force Survey (PLFS)

Additionally, Supply and Use Tables (SUT) have been integrated into national accounts to reduce discrepancies between production-based and expenditure-based GDP estimates.

Sectoral Growth Trends in FY26

Secondary Sector (Strong Momentum)

• Overall Growth: 9.5%
• Manufacturing: 12.5%
• Construction: 6.9%

Manufacturing-led expansion suggests improved industrial performance.   

Primary Sector (Moderation)

• Overall Growth: 2.8%
• Agriculture: 2.5%
• Mining & Quarrying: 5%

The slowdown reflects agricultural moderation compared to the previous year.

Tertiary Sector (Resilient Services Growth)

• Overall Services Growth: 8.9%
• Trade, Hotels, Transport: 10.3%
• Financial, Real Estate, IT & Professional Services: 10%

Services remain a key growth driver. 

Downward Revision in Nominal GDP

While real growth has improved, the nominal GDP size has been revised downward.   

• FY26 Nominal GDP: ₹345.47 lakh crore
• Approximately 3.3% lower than old series estimates
• FY24 & FY25 also revised down by about 3.8%

Nominal GDP is critical for fiscal calculations since it reflects the economy’s current-price value.

Impact on Fiscal Ratios

Because fiscal ratios are expressed as a percentage of nominal GDP:

• Fiscal Deficit  FY26: 4.51% (earlier 4.36%)
• Debt-to-GDP FY27: 57.5% (earlier target 55.6%)

Although absolute borrowing remains unchanged, a smaller GDP base increases these ratios, making fiscal consolidation targets steeper.

Broader Significance

1. Statistical Modernisation

Represents one of the most important reforms in India’s national accounting system in over a decade.

2. Better Sectoral Measurement     

Improves representation of manufacturing, services, and informal sectors.

3. Policy Recalibration

Revised numbers influence fiscal planning, monetary policy, and debt management strategies.

4. International Credibility

Alignment with global statistical standards enhances investor confidence. 

5. Transparent Economic Benchmarking

Provides a more realistic measure of growth trends.

Challenges Ahead

• Complexity of double deflation implementation
• Back-series reconstruction
• Data quality from states
• Informal sector measurement gaps
• Managing perception amid revisions

Transparent communication and timely release of historical data will be critical.

Strengthening City Governance: How the 16th Finance Commission Reinforces Urban Local Bodies

Why in News?

The latest report of the 16th Finance Commission, tabled in Parliament on February 1, 2026, has proposed enhanced financial support for Urban Local Governments (ULGs), marking a significant push towards strengthening urban governance in India.

16th Finance Commission: Overview and Key Recommendations

The Sixteenth Finance Commission, chaired by Arvind Panagariya, submitted its report covering the period 2026–27 to 2030–31.

Under Article 280 of the Constitution, the Finance Commission recommends:

• Distribution of tax revenues between the Centre and States
• Allocation of funds among States
• Grants-in-aid to local governments

Key Recommendation on Vertical Devolution

The Commission has retained 41% of the divisible pool of central taxes for states — the same as recommended by the Fifteenth Finance Commission.

(The divisible pool excludes cesses, surcharges, and cost of tax collection.)

Criteria for Horizontal Devolution Among States

The introduction of “Contribution to GDP” (10%) marks a significant shift, rewarding economically productive states.

16th Finance Commission Boosts Urban Local Governments

The most notable reform is the increase in grants for Urban Local Bodies (ULBs).

Share of Local Body Grants to Urban Areas

• 13th FC: 26%
• 15th FC: 36%
• 16th FC: 45%

Absolute Allocation

The Commission has recommended ₹3.56 lakh crore for Urban Local Bodies —

• More than double the 15th FC’s ₹1.55 lakh crore
• Nearly 15 times the 13th FC allocation (post-2011 Census)

This substantial increase reflects recognition of India’s rapidly urbanising population and expanding city-level responsibilities.

Rising Urbanisation and the Need for Greater Urban Funding

India is projected to reach 41% urbanisation by 2031.

Why This Matters:

• Higher demand for urban infrastructure
• Increased pressure on housing, sanitation, water supply
• Rising transport and pollution challenges
• Greater need for digital and climate-resilient urban systems

The 2011 Census recorded urbanisation at 31%, but estimates vary widely. A 2015 World Bank assessment suggested over 50% may already be living in urban or peri-urban clusters — highlighting measurement challenges.

Uncertainty in demographic data complicates fiscal planning, making proactive financial support crucial.

Uneven Distribution Across States

Since grants follow population-based and formula-driven criteria, outcomes vary significantly:

• Kerala: Over 400% increase
• Maharashtra: Over 300% rise
• Odisha: 13% growth
• Bihar: 8% reduction

This reflects differences in demographic structure, economic output, and formula weightage changes.

16th FC’s Financial Cushion

The 45% allocation acts as a forward-looking buffer. If Census 2027 reveals urbanisation at 45–48%, urban governments will not be financially underprepared — unlike earlier cycles when urban grants were comparatively lower.

This anticipatory approach strengthens fiscal resilience at the grassroots level.

Broader Significance

1. Strengthening Fiscal Federalism

Reinforces third-tier governance under the 73rd and 74th Constitutional Amendments.

2. Urban Transformation

Supports Smart Cities, climate adaptation, waste management, and digital infrastructure.

3. Addressing Infrastructure Deficit

Cities contribute over 60% of GDP but historically receive limited fiscal autonomy.

4. Encouraging Accountability

Larger grants increase pressure on states to improve urban governance and transparency.

5. Balancing Demography and Productivity

Introduction of GDP contribution parameter attempts to reconcile equity and efficiency in devolution.

Challenges Ahead

• Capacity constraints in urban local bodies
• Weak revenue mobilisation at municipal level
• Dependence on state governments
• Data inconsistencies on urban population
• Implementation and monitoring challenges

Financial empowerment must be accompanied by administrative reforms..

Tripura Leads the Way: India’s First State Innovation Mission Launched

Why in News?

The Atal Innovation Mission (AIM) under NITI Aayog has launched India’s first State Innovation Mission (SIM) in Tripura.

This marks a significant step toward decentralising India’s innovation policy and strengthening state-level innovation ecosystems.

What is the State Innovation Mission (SIM)?

The State Innovation Mission (SIM) is part of the approved AIM 2.0 programme under the State Support Mission (SSM) framework of NITI Aayog.

It is conceived as a long-term institutional mechanism to support States and Union Territories in:

• Building robust innovation ecosystems
• Aligning innovation strategies with local strengths
• Ensuring inclusion and regional balance
• Connecting local priorities with national development goals

Tripura has become the first state to operationalise this model.

Key Features of the State Innovation Mission

Under SIM, AIM will collaborate closely with the Government of Tripura to:

1. Design a Long-Term Innovation Strategy

Creating a roadmap tailored to the state’s economic structure, demographic profile, and sectoral strengths.

2. Strengthen Policy & Regulatory Frameworks

Ensuring conducive policies for startups, MSMEs, and research-driven enterprises.

3. Promote Multi-Stakeholder Partnerships

Facilitating collaboration between:

• Government departments
• Universities and research institutions
• Industry players
• Civil society organisations

4. Enable Peer Learning

Creating platforms for cross-state knowledge exchange and best-practice adoption.

5. Support Startups

Providing:

• Infrastructure
• Mentorship
• Access to funding
• Market linkages

The Mission spans the entire innovation lifecycle — from school-level creativity to advanced entrepreneurship.

Background: What is Atal Innovation Mission?

The Atal Innovation Mission was established in 2016 as a flagship initiative under NITI Aayog.

Core Objective: To promote innovation and entrepreneurship across schools, universities, research institutions, industries, and MSMEs.

Two Core Functions of AIM

1. Promoting Entrepreneurship

Encouraging innovators to convert ideas into viable enterprises through funding and mentorship.

2. Promoting Innovation

Creating platforms that nurture creative problem-solving and technological solutions.

Major AIM Programmes

• Atal Tinkering Labs (ATLs) – Innovation labs in schools
• Atal Incubation Centres (AICs) – Startup incubation support
• Atal New India Challenges – Thematic innovation competitions
• Atal Grand Challenges – National-level problem-solving initiatives

SIM represents the next phase — shifting from centralised innovation support to state-driven innovation governance.

Why State-Level Innovation Matters

1. Regional Diversity

India’s states differ widely in economic structures, resource bases, and innovation capacities.

2. Decentralised Governance

Innovation ecosystems function best when tailored to local industries and demographic realities.

3. Balanced Development

Bridging regional disparities, particularly in Northeast and aspirational districts.

4. Strengthening Startup India

State-level innovation missions complement national startup initiatives.

5. Capacity Building

Building institutional capacity within state governments to manage innovation policy effectively.

Significance

1. Deepening Cooperative Federalism

SIM embodies Centre-State collaboration in innovation governance.

2. Empowering Smaller States

Tripura’s selection signals attention to Northeast India’s development.

3. Institutionalising Innovation

Moves beyond ad-hoc grants toward structured, long-term ecosystem development.

4. Inclusive Growth

Emphasises regional balance, youth empowerment, and local entrepreneurship.

5. Strengthening India’s Innovation Ranking

Robust state ecosystems contribute to improved performance in global innovation indices.

Challenges

• Capacity gaps in state institutions
• Ensuring sustained funding
• Avoiding duplication with existing schemes
• Monitoring measurable outcomes
• Bridging rural-urban innovation divides