Daily Current Affairs- 1st July 2026

Daily Current Affairs- 1st July 2026

India’s Unemployment Rate Falls to 8-Year Low in 2025

In the News: India’s unemployment rate fell to 3.1% in 2025, the lowest level recorded in eight years. The finding is based on the Periodic Labour Force Survey Annual Report 2025 released by the National Statistics Office under the Ministry of Statistics and Programme Implementation. The data is important because it reflects trends in employment, labour force participation, regular wage work, youth unemployment and gender-based labour indicators.

Key Points:

• Data Source and Survey Period: The unemployment figure comes from the Periodic Labour Force Survey Annual Report, 2025. The report covers January 2025 to December 2025 and is the first comprehensive PLFS annual report based on a calendar-year survey period. The survey covered over 2.70 lakh households and more than 11.48 lakh persons across rural and urban India.
• Unemployment Rate: The unemployment rate in usual status for persons aged 15 years and above stood at 3.1% in 2025. The male unemployment rate declined marginally from 3.3% in 2024 to 3.1% in 2025, while the female unemployment rate remained unchanged at 3.1%. Rural unemployment was lower at 2.4%, while urban unemployment stood at 4.8%.
• Youth and Educated Unemployment: Youth unemployment in the 15 to 29 age group declined to 9.9% in 2025 from 10.3% in 2024. Rural youth unemployment fell to 8.3%, while urban youth unemployment declined to 13.6%. Unemployment among educated persons with secondary education and above also reduced to 6.5% in 2025 from 7.0% in 2024.
• Labour Participation and Employment Type:  The labour force participation rate for persons aged 15 years and above stood at 59.3% in 2025. The worker population ratio was estimated at 57.4%. The share of regular wage and salaried employment increased to 23.6% in 2025 from 22.4%, while self-employment declined from 57.5% to 56.2%.
• Gender and State-Level Concerns: The national trend shows improvement, but state-level data reveals concerns in urban female unemployment. Bihar, Rajasthan and Himachal Pradesh saw a rise in urban female unemployment over the longer period from 2017-18 to 2025. At the all-India level, urban female unemployment declined from 10.8% to 6.4% over the same period.

VB-G RAM G Act 2025 Comes into Force from July 1

In the News: The Viksit Bharat Guarantee for Rozgar and Aajeevika Mission (Gramin), or VB-G RAM G Act, 2025, came into force across rural India from July 1, 2026. The Act replaces the earlier MGNREGA framework with a revised statutory rural employment system. It provides eligible rural households a statutory entitlement to 125 days of guaranteed wage employment.

Key Points:

• Full Name and Legal Status: VB-G RAM G stands for Viksit Bharat Guarantee for Rozgar and Aajeevika Mission (Gramin). The Act received presidential assent in 2025 and has been described as a statutory overhaul of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005. It is linked with rural employment, livelihood security, accountability and durable asset creation.
• Employment Guarantee Increased: Under MGNREGA, eligible rural households were guaranteed at least 100 days of wage employment in a financial year. The VB-G RAM G Act increases this entitlement to 125 days. The provision for unemployment allowance, when work is not provided within the prescribed period, has also been retained.
• Revised Wage Rates: The Government notified revised wage rates for all States and Union Territories under the new Act. No notified daily wage will be below ₹300 anywhere in the country. The national average notified wage has increased from ₹298.8 per day to ₹327.4 per day, reflecting a wage enhancement of more than 10%.
• Funding Pattern and State Role: The Act changes the funding structure by making it a centrally sponsored scheme. The fund-sharing pattern is 60:40 for most states and 90:10 for North-Eastern and Himalayan states. States are required to notify schemes consistent with the Act within six months of its commencement.
• Implementation and Digital Platform: The national rollout includes distribution of Rural Employment Guarantee Cards, launch of the VB-G RAM G software platform and release of implementation-related publications. The national launch programme was scheduled in Tirupati district of Andhra Pradesh. The Act also emphasises local planning, technology-based monitoring and creation of durable rural assets.

Ahead of 8th CPC, experts explain why India’s public sector compensation is higher than reported

In the News: The debate around government compensation has intensified as India prepares for the Eighth Central Pay Commission. Experts have argued that India’s official pay and pension numbers do not fully capture the actual cost of public sector workers. The concern is that contract workers, scheme workers, autonomous institutions and fragmented budget heads may leave the real compensation bill understated.

Key Points:

• 8th Central Pay Commission Background: The Union Cabinet approved the Terms of Reference of the 8th Central Pay Commission on October 28, 2025. The Commission is a temporary body with a Chairperson, one part-time member and one Member-Secretary. It is required to submit its recommendations within 18 months from the date of its constitution.
• Official Compensation Data: The central government’s pay and pension expenditure averaged about 2.4% of GDP between 2015-16 and 2020-21. For states, the 2022-23 figure was around 2.5% of GDP. Experts argue that these figures mainly capture permanent employees and do not fully include workers engaged through contracts, schemes and institutions outside standard payrolls.
• Contract and Scheme Workers: Contract workers engaged in government functions such as maintenance, data entry and security are often outside headline salary figures. At the central level, contract workers grew to 76% of the permanent workforce in 2020-21. Scheme workers such as ASHAs, PM-POSHAN cook-cum-helpers and Anganwadi workers are also often classified through honoraria rather than regular salary heads.
• Fragmented Reporting: Salary grants to autonomous institutions such as AIIMS, IITs, IIMs, regulatory bodies and research agencies are recorded separately from regular government salaries. More than 350 such institutions received about ₹60,000 crore as salary grants in 2024-25. Municipal corporation employees at the state level also remain outside many state salary accounts.
• Adjusted Compensation Estimate: After adding contract worker pay, scheme worker honoraria, autonomous institution salaries and separately reported Railway and Post pensions, the central government’s compensation bill rises from 2.4% to 3.8% of GDP. Including public sector enterprise employees takes it to 4.6%. Experts argue that better classification is needed for fiscal transparency and realistic assessment of public finances.

Why the US Supreme Court struck down Trump’s birthright citizenship order

In the News: The US Supreme Court struck down President Donald Trump’s birthright citizenship executive order in Trump v. Barbara. The 6-3 ruling held that children born in the United States to parents who are unlawfully or temporarily present are still “subject to the jurisdiction” of the United States. The Court said such children are citizens at birth under the Fourteenth Amendment’s Citizenship Clause.

Key Points:

• Executive Order No. 14160: President Trump issued Executive Order No. 14160 on January 20, 2025, titled Protecting the Meaning and Value of American Citizenship. The order said that children born to parents unlawfully or temporarily present in the US would not qualify for citizenship. The order was challenged on the ground that it violated the Fourteenth Amendment and the Immigration and Nationality Act.
• Fourteenth Amendment Clause: The Fourteenth Amendment states that all persons born or naturalised in the United States and subject to its jurisdiction are citizens. The Court interpreted “subject to the jurisdiction” as covering children born on US soil to undocumented or temporary-status parents. It rejected the argument that such children fall outside US jurisdiction merely because their parents are not citizens or permanent residents.
• Reliance on Wong Kim Ark: The ruling reaffirmed the 1898 precedent of United States v. Wong Kim Ark. That case recognised birthright citizenship for a person born in the US to foreign parents. Chief Justice John Roberts said the Court saw no reason to depart from the long-standing understanding that the rule protects children born in the US and subject to its legal authority.
• Executive Power Limited: The Court held that citizenship guaranteed by the Constitution cannot be narrowed through an executive order. The ruling blocked the administration’s attempt to change the meaning of birthright citizenship through presidential direction to federal agencies. It reinforced the principle that constitutional rights cannot be revised by executive action alone.

GST Day 2026: 9 Years of India’s Landmark Tax Reform Explained

In the News: India observed GST Day on July 1, 2026, marking nine years since the Goods and Services Tax came into force on July 1, 2017. The observance highlighted GST as one of India’s most important indirect tax reforms. It also underlined the role of GST in creating a common national market, improving tax compliance and strengthening Centre-State coordination.

Key Points:

• GST Launch and Objective: GST was launched on July 1, 2017, after the Constitution (101st Amendment) Act, 2016. It aimed to replace multiple indirect taxes with a unified tax system. The reform is associated with the idea of “One Nation, One Tax”.
• Taxes Subsumed: GST subsumed several central and state-level indirect taxes into one common framework. It reduced the problem of cascading taxation, where tax was charged on tax at different stages. This helped simplify the indirect tax structure for goods and services.
• GST Council: The GST Council is a constitutional body under Article 279A of the Constitution. It is a joint forum of the Centre and the States. The Union Finance Minister serves as the Chairperson of the Council.
• Digital Tax Administration: GST has increased the use of digital systems in tax administration. Important features include the GSTN portal, e-invoicing, pre-filled returns and digital invoice matching. These measures have improved transparency and compliance.
• Recent GST Reforms: The recent phase of GST reforms focused on simplification of rates and easier compliance. The structure was simplified mainly around the 5% and 18% slabs, with a higher rate for luxury and sin goods. The reforms also aimed to support MSMEs, startups and ordinary taxpayers.

National Doctors’ Day 2026: Theme, History, Significance and Why India Celebrates It on July 1

In the News: India observed National Doctors’ Day on July 1, 2026, to honour the contribution of doctors and healthcare professionals. The day is linked to Dr Bidhan Chandra Roy, whose birth and death anniversaries both fall on July 1. The 2026 theme focused on the well-being of doctors and the challenges faced by medical professionals.

Key Points:

• Date and Historical Link: National Doctors’ Day is observed in India every year on July 1. The date commemorates Dr Bidhan Chandra Roy, who was born on July 1, 1882, and died on July 1, 1962. India began observing the day in 1991.
• About Dr B.C. Roy: Dr Bidhan Chandra Roy was a noted physician, public leader and former Chief Minister of West Bengal. He played an important role in the development of medical institutions and public health. He was awarded the Bharat Ratna in 1961.
• Theme 2026: The widely cited theme for National Doctors’ Day 2026 was “Behind the Mask: Who Heals the Healers?”. The theme focused on the emotional, mental and physical stress faced by doctors. It highlighted the need to recognise doctors as individuals who also require care and support.
• Healthcare Workforce Context: India has a large network of allopathic and AYUSH doctors serving public and private healthcare systems. The doctor-population ratio is an important indicator of healthcare access. It is frequently discussed in the context of health infrastructure and public health planning.