Daily Current Affairs (05 March 2026): Analytical Coverage for UPSC, SSC & Banking Exams
The Daily Current Affairs of 05 March 2026 highlights significant developments in economy, international relations, governance, science, environment, and defence that are highly relevant for competitive examinations. Key updates include the India–Japan USD 75 Billion Currency Swap Renewal, EPFO retaining 8.25% interest rate, Haryana Budget 2026–27, India–Canada strategic reset, and rising geopolitical tensions affecting the Strait of Hormuz energy route.
Jump to section
- Introduction
- Background and Evolution
- Key Developments (Current Event Explained)
- Constitutional, Legal and Institutional Angle
- Economic, Social, Environmental and Geopolitical Impact
- Data and Facts Table
- Government Initiatives and Related Schemes
- Challenges and Way Forward
- Prelims-Oriented Key Facts
- One-Liner Revision Notes
- Possible UPSC Mains Questions
- Explore More Current Affairs
Introduction
The Daily Current Affairs of 05 March 2026 reflect India's evolving policy landscape across financial stability, global diplomacy, technological collaboration, and environmental conservation. Recent developments such as the renewal of the India–Japan Bilateral Swap Arrangement (BSA), policy reforms in Employees’ Provident Fund Organisation (EPFO), and the launch of major government initiatives like Project HANUMAN in Andhra Pradesh demonstrate India's policy focus on economic resilience and sustainable governance.
Internationally, geopolitical tensions in the Strait of Hormuz, strategic cooperation through the India–Canada Joint Leaders Statement, and technological collaborations involving Artificial Intelligence (AI) and Sixth Generation (6G) Telecommunications signal the increasing importance of global cooperation and security in shaping India's foreign policy and economic trajectory.
From an examination perspective, these developments are critical as they intersect with key themes such as macroeconomic stability, trade and energy security, federal governance, environmental conservation, technological innovation, and defence diplomacy.
Background and Evolution
India’s economic and diplomatic engagements have evolved significantly in the last decade, particularly through mechanisms that ensure financial stability, trade resilience, and global cooperation. One such mechanism is the Bilateral Swap Arrangement (BSA) between the Reserve Bank of India (RBI) and the Bank of Japan (BoJ), first signed in October 2018. Currency swap agreements act as financial safety nets, enabling countries to access foreign currency liquidity during periods of economic stress. The continuation of the USD 75 billion facility demonstrates the strengthening of Indo–Japanese economic cooperation, which is also reflected in projects such as industrial corridors, infrastructure financing, and technology partnerships.
Similarly, India’s social security framework has evolved through institutions such as the Employees’ Provident Fund Organisation (EPFO), which operates under the Ministry of Labour and Employment. The EPFO manages the Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS), and Employees’ Deposit Linked Insurance Scheme (EDLI). These schemes collectively form one of the world’s largest retirement savings systems and are central to India's formal labour welfare structure.
India’s regulatory framework for capital markets is overseen by the Securities and Exchange Board of India (SEBI), established in 1988 and granted statutory powers through the SEBI Act, 1992. SEBI plays a crucial role in maintaining market transparency, investor protection, and corporate governance standards, which explains the regulatory action taken against Coffee Day Enterprises for financial misstatements.
On the international front, India continues to expand its strategic partnerships through initiatives such as the India–Canada Strategic Energy Partnership and cooperation through platforms like the International Solar Alliance (ISA). These partnerships align with global sustainability goals and strengthen India’s role in clean energy transitions and critical mineral supply chains.
Key Developments (Current Event Explained)
Several major developments were reported on 05 March 2026, spanning economy, governance, science, and international relations.
The renewal of the India–Japan Bilateral Swap Arrangement worth USD 75 billion reinforces financial cooperation between the two nations and acts as a buffer against external financial shocks. Meanwhile, the EPFO’s decision to retain the 8.25% interest rate for EPF deposits ensures stability in retirement savings for millions of Indian workers.
In financial regulation, SEBI imposed penalties on Coffee Day Enterprises for misreporting financial losses, reinforcing regulatory oversight in India’s capital markets. At the macroeconomic level, India’s Current Account Deficit (CAD) widened to 1.3% of GDP in Q3 FY26, reflecting rising imports but also highlighting the stabilising influence of services exports and remittances.
Other significant developments include:
- Launch of Project HANUMAN in Andhra Pradesh to address human–wildlife conflict
- Announcement of the Bharat Steel 2026 Summit in New Delhi
- Presentation of the Haryana Budget 2026–27 with ₹2.23 lakh crore outlay
- Strategic reset of India–Canada relations through the 2026 Joint Leaders Statement
- Scientific discovery of 541-million-year-old evidence of early animal life
These developments collectively highlight India's policy priorities in economic resilience, environmental protection, technological innovation, and global diplomacy.
Constitutional, Legal and Institutional Angle
Several institutional frameworks are relevant to these developments. The Reserve Bank of India (RBI) operates under the RBI Act, 1934, which mandates the central bank to maintain financial stability and regulate currency and credit systems. The RBI’s participation in international currency swap agreements demonstrates its role in managing external sector risks and foreign exchange stability.
The Employees’ Provident Fund Organisation (EPFO) functions under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, which ensures social security benefits for organised sector workers. The EPFO’s decision-making authority lies with the Central Board of Trustees (CBT), chaired by the Union Labour Minister.
Similarly, the Securities and Exchange Board of India (SEBI) derives its authority from the SEBI Act, 1992, enabling it to regulate securities markets and enforce compliance standards.
Environmental conservation initiatives such as the Indian Bison Fest in Debrigarh Wildlife Sanctuary fall within the broader framework of the Wildlife Protection Act, 1972, which aims to safeguard biodiversity and endangered species in India.
Economic, Social, Environmental and Geopolitical Impact
The renewal of the India–Japan currency swap agreement strengthens India’s external financial resilience by providing access to foreign currency liquidity during periods of economic volatility. Such arrangements reduce dependence on emergency borrowing and strengthen confidence in the country's macroeconomic stability.
The EPFO interest rate stability supports long-term retirement security for salaried employees and contributes to household financial stability. At the same time, maintaining the same interest rate for consecutive years reflects the balance between investment returns and financial sustainability of pension funds.
The widening of the Current Account Deficit indicates pressure from rising imports, particularly energy and industrial goods. However, robust services exports and remittance inflows from the Indian diaspora help offset external sector pressures, reinforcing India's status as a major global services exporter.
Geopolitically, tensions in the Strait of Hormuz have major implications for India’s energy security because nearly 50% of India’s crude oil imports pass through this route. Any disruption could lead to higher energy prices, inflationary pressures, and trade imbalances.
Environmental initiatives such as Project HANUMAN demonstrate India’s increasing emphasis on human–wildlife coexistence, reflecting the need for sustainable development alongside ecological protection.
Data and Facts Table
| Category | Key Information |
|---|---|
| Currency Swap | India–Japan Bilateral Swap Arrangement worth USD 75 billion |
| EPFO Interest Rate | 8.25% for FY 2025–26 |
| Current Account Deficit | $13.2 billion (1.3% of GDP) in Q3 FY26 |
| Haryana Budget 2026–27 | ₹2.23 lakh crore |
| Stablecoin Market Size | Over $310 billion globally |
| Bison Population | 848 gaurs recorded in Debrigarh Sanctuary (2026 census) |
| CWC Turnover FY25 | ₹2,776.88 crore |
| Strait of Hormuz | Handles ~20% of global oil trade |
Government Initiatives and Related Schemes
India has launched several initiatives aimed at improving governance, environmental protection, and economic growth. Project HANUMAN, launched in Andhra Pradesh, focuses on mitigating human–wildlife conflicts through rapid response teams, wildlife tracking systems, and community awareness programmes.
Another key initiative is the Eligible Manufacturer Importers (EMI) Scheme, introduced by the Central Board of Indirect Taxes and Customs (CBIC) under the Union Budget 2026–27. The scheme allows eligible manufacturers to defer payment of import duties, improving liquidity and reducing operational costs for businesses.
In the energy sector, institutions like the Bureau of Energy Efficiency (BEE) continue to promote energy conservation through programmes such as the Perform, Achieve and Trade (PAT) Scheme and the Standards and Labelling Programme.
Challenges and Way Forward
Despite progress, several structural challenges remain. India’s rising Current Account Deficit highlights the need to reduce dependence on imported energy and strengthen domestic manufacturing capacity. Increasing investment in renewable energy and green technologies could help address these vulnerabilities.
Similarly, regulatory actions such as those taken by SEBI indicate the importance of improving corporate governance standards and strengthening financial disclosure practices.
Environmental challenges such as human–wildlife conflict require long-term solutions involving habitat restoration, improved compensation mechanisms, and community participation in conservation efforts.
Moving forward, India must focus on institutional reforms, technological innovation, sustainable development, and global partnerships to maintain economic stability and strategic influence.
Prelims-Oriented Key Facts
- India–Japan Bilateral Swap Arrangement: USD 75 billion
- EPFO Interest Rate (2025–26): 8.25%
- Strait of Hormuz: Handles about 20% of global oil trade
- SEBI Established: 1988 (statutory powers in 1992)
- Debrigarh Wildlife Sanctuary: Located in Odisha
- Bureau of Energy Efficiency: Established under Energy Conservation Act, 2001
- Haryana Budget 2026–27 Outlay: ₹2.23 lakh crore
One-Liner Revision Notes
- India and Japan renewed a USD 75 billion Bilateral Swap Arrangement.
- EPFO retained 8.25% interest rate for FY 2025–26.
- SEBI penalised Coffee Day Enterprises for financial misstatements.
- India’s Current Account Deficit widened to 1.3% of GDP in Q3 FY26.
- Project HANUMAN launched in Andhra Pradesh to address human–wildlife conflict.
- Bharat Steel 2026 Summit will be held in New Delhi.
- Haryana Budget 2026–27 outlay is ₹2.23 lakh crore.
- Debrigarh Wildlife Sanctuary recorded 848 Indian bison.
- INS Sudarshini reached Alexandria during Lokayan-26 expedition.
- Scientists found evidence of 541-million-year-old animal life.
Possible UPSC Mains Questions
- Discuss the significance of bilateral currency swap arrangements in ensuring financial stability in emerging economies like India.
- Examine the impact of geopolitical tensions in the Strait of Hormuz on India’s energy security and economic stability.
- Evaluate the role of regulatory institutions like SEBI in strengthening corporate governance in India.
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