UPSC current affairs · Saturday

Current Affairs, 4 July 2026

5 issues picked from 26 PIB releases · about 2 minutes each · written by UPSC Grade, each fact checked against its PIB release or by a second model

How to readRead “Why in news” and “What it is” for every issue. Open For Prelims or For Mains for the exam you’re preparing for, then Test yourself at the foot of each card. Half the news questions in Prelims are answered from background, not the news itself.

In 60 seconds

India-Israel Bilateral Investment Agreement. India-Israel investment protection treaty enters into force on 4 July 2026, after signing in September 2025.
UDAN (Ude Desh ka Aam Nagrik). Modified UDAN extends regional air connectivity for ten years with ₹29,000 crore, aerodromes and helipads.
UAPA Designation of Individuals as Terrorists. MHA adds 23 individuals to UAPA's Fourth Schedule as terrorists; total now 80.
National Action Plan for Drug Demand Reduction and Nasha Mukt Bharat Abhiyaan. Social Justice Ministry reports 294% rise in drug-treatment seekers under NAPDDR and Nasha Mukt Bharat Abhiyaan.
Academic Bank of Credits and APAAR ID. ABC and APAAR ID give every learner a portable digital record of academic credits.

International relations

India-Israel Bilateral Investment Agreement

GS3 Economy · Investment and trade agreementsGS2 Bilateral groupings and agreementsPrelims and Mains

Why in news: The India-Israel Bilateral Investment Agreement, signed in New Delhi on 8 September 2025, came into force on 4 July 2026, the Finance Ministry announced.
What it is: A Bilateral Investment Agreement (BIA) is a treaty in which two states set rules to protect each other's investors and investments. The India-Israel BIA follows India's post-2015 approach to investment treaties, which seeks to protect investors while keeping the state's right to regulate. It is administered on India's side by the Department of Economic Affairs, Ministry of Finance.

Signing: The agreement was signed in New Delhi on 8 September 2025.
Policy balance: It protects investors and investments but keeps sovereign policy space for legitimate public policy objectives.
Nodal department: The text is hosted by the Department of Economic Affairs, Ministry of Finance, which handles investment treaties for India.
Expected effect: It is expected to raise cross-border investment and deepen the economic partnership.

Don’t confuse with BIA vs FTA: A BIA covers protection of investments. An FTA mainly covers trade in goods and services, and may include an investment chapter.

Don’t confuse with BIA vs DTAA: A BIA protects investments. A Double Taxation Avoidance Agreement allocates taxing rights between two countries.

International bodies and relations: the largest group of news questions in Prelims (61 since 2013), often about background, members and location. In Mains, 27 news-triggered questions, mostly on India's interests.

Test yourselfMains

Source: PIB, Ministry of Finance, 4 Jul, 09:00 IST · Release 290848

Issue page →

Worth revising until Prelims 2028: most news questions come within two years of the event.

Scheme

UDAN (Ude Desh ka Aam Nagrik)

GS3 Infrastructure · AviationGS2 Centre-StatePrelims and Mains

Why in news: On 4 July 2026 PM Modi launched the next phase of UDAN, called Viksit UDAN or Modified UDAN, from Jodhpur. The Cabinet had approved it on 25 March 2026 with an outlay of about ₹29,000 crore over ten years.
What it is: UDAN (Ude Desh ka Aam Nagrik) is the Centre's regional air connectivity scheme, begun in 2016. It links unserved and underserved airports by having airlines bid for routes. The Airports Authority of India implements it.

Launch: The Regional Connectivity Scheme, branded UDAN, was launched on 21 October 2016 under the National Civil Aviation Policy 2016.
First flight: The first UDAN flight ran from Shimla to Delhi in April 2017.
Modified UDAN outlay and period: The next phase runs ten years, FY 2026-27 to FY 2035-36, with a total outlay of Rs 28,840 crore.
Airline support: Rs 10,043 crore of VGF is for airlines over ten years. Support is for up to five years, tapering from the third year, and route exclusivity is limited to three years.
Centre-State MoUs: 21 MoUs were signed between the Government, participating States/UTs and the AAI.
Implementing agency: The Airports Authority of India (AAI) is the implementing agency. The 21 MoUs were signed among the Ministry, the States/UTs and AAI.
Challenge Mode: States and UTs can nominate airstrips and helipads for development under the next phase through a dedicated portal.
Four pillars of Modified UDAN: Affordability for passengers, sustainability of operations, a transparent Challenge Mode framework, and promotion of indigenous manufacturing.
Route bidding: Airlines bid for identified UDAN routes, so routes and operators are chosen competitively.
Achievements so far: The Minister said UDAN has operationalised 687 routes and 95 aerodromes.
Targets of Modified UDAN: The MoS said Modified UDAN aims at 120 new destinations and 4 crore more passengers over the next ten years.
Outlay and period: Modified UDAN runs for ten years, FY 2026-27 to FY 2035-36, with an outlay of ₹28,840 crore.
VGF terms: Airlines get Viability Gap Funding for up to five years. Tapering starts from the third year. Route exclusivity is limited to three years.
RCS levy: UDAN is funded from within the sector by a small levy on selected domestic flights, described as a first-of-its-kind model.
Indigenous aircraft: The scheme proposes two HAL Dhruv helicopters for Pawan Hans and two HAL Dornier aircraft for Alliance Air.
Launch of Modified UDAN: The Prime Minister launched Modified UDAN on 4 July 2026 from Jodhpur Airport.
AOP condition for bidders: Airlines without an Air Operator Permit (AOP) cannot bid for routes. A failed bidder is barred from the re-bidding.
Track record: Since October 2016 UDAN has operationalised 669 routes and connected 95 airports, heliports and water aerodromes, with over 1.66 crore passengers.
Outlay and approval: The Union Cabinet approved the Modified UDAN Scheme on 25 March 2026, with about ₹29,000 crore over ten years.

Don’t confuse with UDAN vs Modified UDAN: UDAN (2016) funded VGF mainly for airlines on routes. Modified UDAN (2026) adds aerodrome capex, O&M support, helipads and indigenous aircraft purchase.

Don’t confuse with AAI vs DGCA: AAI builds and manages airports and implements UDAN; DGCA regulates safety and licensing.

Don’t confuse with UDAN vs Challenge Mode: UDAN is the overall scheme with airline route bidding. Challenge Mode is the new route for States/UTs to nominate airstrips and helipads for development.

Don’t confuse with VGF period vs exclusivity: VGF lasts up to five years, with tapering from year three. Route exclusivity is only three years.

Don’t confuse with Scheme period vs component period: The scheme runs ten years. Aerodrome and helipad outlays are over eight years, and VGF over ten.

Don’t confuse with RCS vs UDAN: The Regional Connectivity Scheme is the official name; UDAN is its brand name.

Don’t confuse with Served vs underserved airport: An unserved airport has no scheduled flights. An underserved one has few flights, below the departure, city-pair and passenger thresholds.

Don’t confuse with UDAN vs Viksit UDAN: Viksit UDAN is the name for the Modified UDAN Scheme, the next phase of the same scheme, not a new scheme.

Don’t confuse with Helipads vs aerodromes: The 200 figure is for modern helipads; 100 is for aerodromes from unserved airstrips.

Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.

Why it matters

Improves access to air travel for remote and underserved regions, supporting tourism, medical access, trade and jobs.
Centre-State partnership and indigenous aircraft support (HAL Dhruv, Dornier) tie into Atmanirbhar Bharat.
Improves air access to remote and unserved regions, supporting tourism, trade and jobs.
Brings States in as partners in building aviation infrastructure.
Extends air links to small towns, hilly and island areas, helping balanced regional development.
Helipads improve access to healthcare and emergency response in difficult terrain.
Links Tier-II and Tier-III cities to air networks and supports balanced regional development.
Helps trade and tourism, for example litchi exports from Darbhanga and marble exports from Kishangarh.
Extends affordable air links to remote and Tier-2 and Tier-3 areas, supporting trade, tourism and jobs.
Promotes domestic aircraft and helicopters, supporting Atmanirbhar Bharat.

Problems

Airline viability on thin regional routes depends on subsidy; support is time-bound.
Hilly terrain in the North-East leaves most identified aerodromes non-operational (12 of 52).
Routes can become unviable once subsidy or support ends, so operations may not be sustainable.
Small airports have high recurring costs and thin revenue, so routes may close once support ends.
Airlines depend on VGF, so long-term commercial viability is uncertain.
Many routes have stopped after the VGF period ended, so route sustainability is weak.
Airlines bid beyond their capacity, delaying routes, and low-traffic airports struggle to remain viable.
Many UDAN routes depend on subsidy and may close once viability gap funding ends.
Low demand and thin infrastructure at small airports strain airline finances.

Way forward

Build aerodromes and O&M support so routes stay operational after VGF ends.
Use State-led nominations through the Challenge Mode Portal and sustain Centre-State coordination.
Choose locations with real demand and keep the bidding transparent so that routes last.
Taper support gradually and build demand through local tourism and trade links.
Prioritise sustainable routes and keep the sector-funded levy working.
Tapered 5-year VGF, O&M support and slots at metro airports can help routes survive.
Tie awards to business plans and aircraft availability, and prioritise state-recommended routes.
Build demand through multimodal links, tourism and cargo to make routes self-sustaining.
Phase out subsidy as routes mature and monitor route continuity.

Put in your answer

VGF disbursed: Rs 5091.23 crore disbursed as VGF as of 15 October 2026.

Airport growth: Operational airports rose from 74 in 2014 to 166; India is the third-largest domestic aviation market.

UDAN performance data: 687 routes and 95 aerodromes operationalised, about 1.71 crore passengers carried.

Employment impact: Aviation-sector jobs rose from about 3 million in 2014 to nearly 7.7 million, as stated by the Minister.

Example airports: Tezu in Arunachal Pradesh and Purnea in Bihar are cited as airports that were once cut off.

VGF outlay: ₹10,043 crore is proposed towards VGF over ten years.

Record traffic: India recorded its highest monthly domestic air traffic in May, over 1.5 crore passengers.

UDAN performance: 669 routes operationalised and 95 airports, heliports and water aerodromes connected, with 1.66 crore passengers carried since 2016.

Test yourself

True or false?

1 of 23

Statements the way Prelims prints them. Say first, then see the fact.

1.The Regional Connectivity Scheme, known as UDAN, was launched in 2016 following the National Civil Aviation Policy 2016.
2.The first UDAN flight operated from Shimla to Delhi.
3.Modified UDAN will run for five years with a total outlay of Rs 28,840 crore.
4.Under Modified UDAN, Viability Gap Funding for airlines is available for up to five years, with route exclusivity limited to three years.
5.Under Modified UDAN, 100 airports are to be developed from existing unserved airstrips.
6.The Challenge Mode Portal allows private airlines to nominate airstrips and helipads for development.
7.Under UDAN, routes are allotted to airlines through a market-based selection process.
8.Under Modified UDAN, Operation and Maintenance support for aerodromes is proposed for a period of three years.
9.Under Modified UDAN, airlines receive Viability Gap Funding for up to three years.
10.The Modified UDAN scheme proposes to develop 200 modern helipads.
11.Modified UDAN is to be implemented over five years with an outlay of ₹28,840 crore.
12.The RCS levy under UDAN is a fee on selected categories of domestic flights, used to fund the scheme from within the aviation sector.
13.The Regional Connectivity Scheme UDAN was launched in October 2016.
14.Modified UDAN proposes HAL Dornier aircraft for Pawan Hans and HAL Dhruv helicopters for Alliance Air.
15.Under the existing UDAN scheme, Viability Gap Funding to airlines is limited to 3 years.
16.Modified UDAN provides VGF for 5 years, with the amount tapering from Year 3 onwards.
17.Under Modified UDAN, airlines without an Air Operator Permit may still bid for routes to promote new entrants.
18.Modified UDAN provides for 3-year operation and maintenance support for manpower salary costs at aerodromes developed under RCS.
19.The UDAN scheme was begun under the National Civil Aviation Policy 2016.
20.The Modified UDAN Scheme has an approved outlay of about ₹29,000 crore over ten years.
21.The scheme promotes the use of indigenous aircraft such as HAL Dhruv and Dornier in underserved regions.
22.UDAN was launched in October 2016.
23.Under UDAN, airlines bid for routes and receive viability gap funding.

Written by us from the release, not by UPSC; checked by a second model.

Source: PIB, Ministry of Civil Aviation, 4 Jul, 15:57 IST · Release 290859

Issue page →

Worth revising until Prelims 2028: most news questions come within two years of the event.

Law and statutory body

UAPA Designation of Individuals as Terrorists

GS3 Internal security · Terrorism lawsGS2 StatutesPrelims and Mains

Why in news: On 4 July 2026 the Ministry of Home Affairs designated 23 more individuals as 'terrorists' under the Unlawful Activities (Prevention) Act, 1967, listing them in its Fourth Schedule.
What it is: The Unlawful Activities (Prevention) Act, 1967 (UAPA) is India's main law against unlawful associations and terrorism. Since the 2019 amendment, the Central Government can designate individuals, not only organisations, as terrorists. Such individuals are listed in the Fourth Schedule.

Power to designate individuals: Since the 2019 amendment, Section 35 lets the Centre notify an individual as a terrorist and list the person in the Fourth Schedule.
Who designates: The Central Government, through the Ministry of Home Affairs, makes the designation.
This batch: Of the 23 individuals, 17 are Pakistani nationals and 6 are Indian nationals, all operating from Pakistan and PoK.
Stated effect: Designation is meant to curb the individuals' finances, movement and recruitment, and to help agencies act together at national and international levels.

Don’t confuse with Banning an organisation vs designating an individual: Organisations are declared terrorist organisations and listed in the First Schedule. Individuals are designated under Section 35 and listed in the Fourth Schedule.

Laws, judgments and statutory bodies: 30 Prelims questions since 2013 (what the law says, who chairs, legal basis). In Mains, 44 news-triggered questions, most in GS2, asking for provisions and challenges.

No practice question for this one; the card may still help an answer. Why: UAPA is a lasting law topic, but this release is a routine designation list with few testable facts. Laws and judgments gave 35 Mains questions, though not for routine listings.

Source: PIB, Ministry of Home Affairs, 4 Jul, 12:38 IST · Release 290849

Issue page →

Worth revising until Prelims 2028: most news questions come within two years of the event.

Scheme

National Action Plan for Drug Demand Reduction and Nasha Mukt Bharat Abhiyaan

GS2 Social justice · Government schemesGS3 Internal securityPrelims and Mains

Why in news: On 4 July 2026 the Ministry of Social Justice & Empowerment said it is expanding drug treatment and rehabilitation under NAPDDR and Nasha Mukt Bharat Abhiyaan. It reported that people seeking treatment rose 294% between 2020 and 2025.
What it is: NAPDDR is the framework through which the Ministry of Social Justice & Empowerment, the nodal ministry for drug demand reduction, works on prevention, awareness, capacity building, treatment, rehabilitation and social reintegration. Nasha Mukt Bharat Abhiyaan, launched in 2020, adds a mass-movement layer on top of it. It works through awareness drives, community mobilisation and volunteers called Nasha Mukti Mitra.

Nodal ministry: The Ministry of Social Justice & Empowerment is the nodal ministry for drug demand reduction and launched NAPDDR.
NMBA launch: Nasha Mukt Bharat Abhiyaan was launched in 2020 to strengthen NAPDDR efforts.
2019 national survey: The Ministry's first nationwide survey on the Magnitude of Substance Use in India was held in 2019. It found over 7 crore people affected by substance use disorder, including about 1.2 crore children and 58 lakh women.
Helpline and app: The toll-free de-addiction helpline 14446 has received 4.69 lakh calls. NMBA App 2.0 lets States, Districts and other stakeholders upload field activity data with real-time visibility.

Don’t confuse with Demand reduction vs supply reduction: NAPDDR, under the Social Justice Ministry, deals with demand reduction: prevention, treatment and rehabilitation. Supply reduction, meaning enforcement against trafficking, is handled by agencies such as the Narcotics Control Bureau under the Home Ministry.

Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.

No practice question for this one; the card may still help an answer. Why: Lasting scheme topic, but the release is a statement with little new; similar drug-free items are already on file, so a question is unlikely.

Source: PIB, Ministry of Social Justice & Empowerment, 4 Jul, 16:22 IST · Release 290861

Issue page →

Worth revising until Prelims 2028: most news questions come within two years of the event.

Scheme

Academic Bank of Credits and APAAR ID

GS2 Education · Higher education reformsPrelims and Mains

Why in news: On 4 July 2026, PIB published an explainer on the Academic Bank of Credits (ABC) and APAAR ID. It reports that 26.35 crore verified APAAR IDs had been generated as of 2 July 2026.
What it is: The Academic Bank of Credits is a digital store of academic credits earned by students from recognised institutions. It was set up by the Ministry of Education under the National Education Policy 2020. APAAR ID is the 12-digit student number linked to it, under the 'One Nation, One Student ID' idea.

Regulator: ABC is an initiative of the Ministry of Education and is regulated by the University Grants Commission.
APAAR ID: APAAR stands for Automated Permanent Academic Account Registry. It is a unique 12-digit student ID linked to ABC.
Credit validity: Credits are valid for at most 7 years or the period set by the discipline. Once redeemed, they cannot be reused for transfer or redemption.
SWAYAM credits: Students may take up to 40% of their credits from the SWAYAM online platform.
NAD: The National Academic Depository is the backbone of ABC and stores academic awards and records securely.

Don’t confuse with ABC vs NAD: ABC stores and moves credits. NAD is the depository that holds certificates and marksheets issued by institutions.

Don’t confuse with NCrF vs ABC: NCrF is the framework that sets how learning is valued as credits. ABC is the platform that stores and transfers those credits.

Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.

No practice question for this one; the card may still help an answer. Why: Lasting education-reform topic under NEP with some facts, but it is an explainer without a fresh decision; scheme questions favour fresh facts.

Source: PIB Headquarters, 4 Jul, 20:47 IST · Release 290869

Issue page →

Worth revising until Prelims 2028: most news questions come within two years of the event.

Quick facts

CG Semi's OSAT facility at Sanand, Gujarat began commercial production, India's third semiconductor plant to do so in 2026.

Source: PIB, 4 Jul

What we left out: 20 of 26 releases

Same issue as another release (7)
Ceremonies and campaigns (5)
Speeches without a decision (5)
Routine admissions notice (1)
Routine export shipments (1)
Press briefings without a decision (1)

Practise the day’s news

In UPSC’s formats, inside each issue. The answer and why come after you choose.

1India-Israel Bilateral Investment AgreementMCQ · 6 true or false
2UDAN (Ude Desh ka Aam Nagrik)MCQ · 23 true or false · Mains

Mains question of the day

15 marks · 250 words

India-Israel Bilateral Investment Agreement came into force in July 2026, ten months after it was signed. In this context, discuss the key features of India's post-2015 approach to Bilateral Investment Treaties and examine their impact on India's investment climate and its right to regulate.

From: India-Israel Bilateral Investment Agreement

Write and get it marked

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