Daily Current Affairs- 4th February 2026

Daily Current Affairs- 4th February 2026

Manipur Set for New Govt, as Ruling Party Elects This Leader For CM Post

In the News: The BJP elected Yumnam Khemchand Singh as the leader of its legislature party in Manipur, paving the way for him to become the next Chief Minister. President's Rule, imposed in February 2025 following prolonged ethnic violence and political instability, was revoked on the same day. Singh staked his claim to form a BJP-led NDA government and is set to be sworn in at 6 PM at Lok Bhavan, Imphal, just days before President's Rule was scheduled to end on February 13, 2026.

Key Points:

• New CM-Designate: Yumnam Khemchand Singh, a 62-year-old senior BJP leader and two-time MLA from Singjamei constituency, was elected as the leader of the BJP legislature party. He is known as a disciplined party organizer, former taekwondo sportsperson, and has served as Speaker of the Manipur Assembly and cabinet minister.
• President's Rule Revoked: President's Rule, which was imposed in Manipur in February 2025, was officially revoked on February 4, 2026. The rule was extended for six months by Parliament on August 5, 2025, and was set to end on February 13, 2026.
• Government Formation: Singh met Governor Ajay Kumar Bhalla at Lok Bhavan, Imphal, and submitted his claim to form a BJP-led NDA government. The swearing-in ceremony was scheduled for 6 PM on the same day. Two Kuki-Zo MLAs, L.M. Khaute and Ngursanglur Sanate, were present during the claim submission.
• Assembly Composition: The 60-member Manipur Assembly has 37 BJP MLAs (including seven Kuki-Zo legislators), six National People's Party (NPP) MLAs, five Naga People's Front MLAs and five JD(U) MLAs joined from an original 32The new government is expected to include broader representation from conflict-affected communities.
• Background of Crisis: The political crisis began in May 2023 when ethnic violence erupted between Meitei and Kuki-Zo communities, leading to large-scale displacement, geographical division between Valley and Hills, and erosion of public confidence in governance.

India-China Trade Surges to Historic USD 155 Billion Amid Diplomatic Recalibration

In the News: India and China recorded bilateral trade of USD 155.6 billion in 2025, marking the highest trade volume ever achieved between the two countries and representing a year-on-year growth of over 12 percent. Chinese Ambassador to India Xu Feihong announced the milestone at the 2026 Chinese New Year Reception in New Delhi, highlighting that India's exports to China grew by 9.7 percent in 2025.

Key Points:

• Record Bilateral Trade: India-China bilateral trade reached USD 155.6 billion in 2025, surpassing all previous records and representing a 12 percent year-on-year growth. This volume places India-China bilateral trade among the largest trade relationships globally and exceeds India's trade with the United States, underlining China's centrality to India's external trade profile.
• Indian Export Growth: Indian exports to China rose 9.7 percent during 2025, demonstrating increasing international competitiveness and growing market access despite periodic trade tensions. Indian exports likely include iron ore, textiles, pharmaceuticals, agricultural products, chemical products, seafood, and precious metals—sectors where India maintains competitive advantages.
• Tianjin Summit Turning Point: Chinese Ambassador Xu pointed to the meeting between President Xi Jinping and Prime Minister Narendra Modi in Tianjin in August 31, 2025, held on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit, as a crucial turning point. Xu stated the meeting led China-India relations from "a reset and fresh start" to "a new level of improvement."
• Post-Standoff Normalization: Since India and China ended the prolonged military face-off in the Ladakh sector of the Line of Actual Control (LAC) in October 2024, both sides have taken steps to stabilize ties and address the boundary dispute. The standoff lasted over four years following the deadly Galwan Valley clash in June 2020 that killed 20 Indian soldiers and at least four Chinese troops, pushing relations to their lowest point in six decades.
• Enhanced Diplomatic Engagement: Exchanges at multiple levels have become more frequent since the disengagement process began, including re-activation of high-level diplomatic, economic, and institutional channels. Both sides have expanded diplomatic infrastructure through regular meetings between foreign secretaries, trade ministers, business delegations, and relevant government agencies.

Elon Musk Becomes the First Person With $800 Billion Wealth

In the News: Elon Musk achieved a historic milestone by becoming the first individual on Earth to accumulate a net worth exceeding USD 800 billion, reaching an estimated USD 852 billion according to Forbes. This unprecedented achievement was catalyzed by a landmark corporate restructuring in which his rocket company SpaceX acquired his artificial intelligence company xAI. The merger added approximately USD 84 billion to Musk's personal net worth and created a combined entity valued at USD 1.25 trillion, making SpaceX his single most valuable asset and surpassing Tesla in financial importance.

Key Points:

• Historic $800 Billion Milestone: Musk became the first person in history to reach a net worth exceeding USD 800 billion, with his total wealth estimated at USD 852 billion as of February 2026. This represents more than a numerical milestone—it reflects the convergence of transformative technologies including space exploration, artificial intelligence, renewable energy, and digital communications.
• SpaceX-xAI Merger Catalyst: The SpaceX-xAI merger, completed in February 2026, created a combined entity valued at USD 1.25 trillion, making it one of the most significant corporate combinations in recent history. The merger was a strategic consolidation integrating AI research and development with space infrastructure, creating synergies between satellite-based communications, AI model training, computational resources, and autonomous systems.
• Wealth Addition from Merger: The corporate restructuring added approximately USD 84 billion to Musk's personal net worth, directly propelling him past the $800 billion threshold. Before the merger, Musk owned around 42% of SpaceX (valued at USD 336 billion) and 49% of xAI (valued at USD 122 billion). After the acquisition, he holds a 43% stake in the combined company, now valued at USD 542 billion.
• SpaceX as Largest Asset: With xAI absorbed into SpaceX, the rocket and satellite company has become Musk's single most valuable asset, surpassing Tesla in financial importance. The merged SpaceX-xAI company contributes the largest component to Musk's wealth, with his 43% stake representing approximately USD 232 billion of his total net worth.
• SpaceX's Strategic Importance: SpaceX dominates commercial spaceflight with unparalleled capabilities in reusable rocket technology, satellite deployment, and space-based services. The Starlink satellite internet constellation represents a multi-hundred-billion-dollar opportunity, while substantial NASA, Department of Defense, and Space Force contracts provide recurring revenue and financial stability.
• Tesla Holdings: Despite SpaceX's emergence as the largest asset, Tesla remains a major contributor to Musk's wealth. He owns approximately 12% of Tesla directly, valued at roughly USD 178 billion, along with stock options worth approximately USD 124 billion. Combined direct ownership and options represent approximately USD 302 billion in Tesla-linked wealth.

India Joins BRICS Centre for Industrial Competencies

In the News: India has officially joined the BRICS Centre for Industrial Competencies (BCIC), marking a significant milestone in advancing industrial capabilities and supporting the manufacturing and MSME sectors. The formal joining was announced at an event organized by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry, at Vanijya Bhavan, New Delhi. A Trust Fund Agreement was signed between DPIIT and the United Nations Industrial Development Organization (UNIDO), and the National Productivity Council (NPC) was designated as the India Centre for BRICS Industrial Competencies.

Key Points:

• BRICS Centre for Industrial Competencies: BCIC is a multilateral platform designed as a one-stop centre providing integrated support services to manufacturing companies and MSMEs across BRICS nations (Brazil, Russia, India, China, and South Africa). The centre is launched in partnership with UNIDO, bringing together expertise from BRICS nations and international development experience.
• Trust Fund Agreement Signed: A formal Trust Fund Agreement was signed between DPIIT and UNIDO at the announcement event. The agreement was signed by Economic Adviser, DPIIT, Shri Agrim Kaushal, and Director, UNIDO, Dr. Cristiano Pasini, establishing financial and operational mechanisms for India's participation. The event was presided over by Secretary, DPIIT, Shri Amardeep Singh Bhatia.
• National Productivity Council as India Centre: The National Productivity Council (NPC) has been designated as the India Centre for BRICS Industrial Competencies, making it the primary institutional focal point for India's engagement. Under policy guidance from DPIIT and technical support from UNIDO, NPC will lead capacity building, productivity enhancement, and adoption of advanced manufacturing practices.
• Focus on Industry 4.0 Competencies: The primary focus of BCIC is strengthening Industry 4.0 capabilities—the integration of digital technologies, artificial intelligence, Internet of Things (IoT), and advanced analytics into manufacturing processes. Industry 4.0 represents the fourth industrial revolution, characterized by smart factories, automated processes, and data-driven decision-making.
• Multi-Stakeholder Participation: The event brought together representatives from DPIIT, Ministry of MSME, Ministry of External Affairs, National Productivity Council, UNIDO, and Federation of Indian Chambers of Commerce and Industry (FICCI). This multi-stakeholder approach ensures the initiative is grounded in policy, responsive to business needs, and aligned with international standards.
• NPC's Core Responsibilities: Under its mandate, NPC will design and deliver training programs, workshops, and certification courses for developing industrial competencies; facilitate adoption of modern manufacturing methodologies and digital technologies; create knowledge resources and case studies; and engage with manufacturers, MSMEs, industry associations, and government agencies.
• Support for Make in India: The initiative supports India's ambitious manufacturing goals including the "Make in India" initiative and Production-Linked Incentive (PLI) schemes. BCIC provides crucial support by helping Indian manufacturers meet international standards, adopt modern technologies, and improve global competitiveness.

World Government Summit 2026: Shaping Future Governments

In the News: The World Government Summit 2026 opened in Dubai on February 3, 2026, under the theme "Shaping Future Governments," bringing together an unprecedented gathering of over 6,250 participants including more than 60 heads of state and government, 500+ ministers, and representatives from over 150 governments.

Key Points:

• Summit Theme and Scope: The summit addresses central questions facing modern governments: how public institutions can remain responsive and effective amid rapid technological change, how to balance innovation with sustainability, how to strengthen international cooperation in a multipolar world, and how governance frameworks can be adapted to serve increasingly diverse populations.
• Unprecedented Participation: The 2026 summit features over 6,250 participants including 60+ heads of state and government, 500+ ministers, 87 Nobel laureates, over 700 global CEOs, and representatives from more than 80 international, regional, and academic organizations. The summit includes 445+ sessions with 450+ global speakers.
• Future of Government Work: Discussions focus on digital transformation in public administration, the role of artificial intelligence in government services, building public sector capabilities for the 21st century, maintaining public trust while adopting new technologies, and balancing efficiency with equity in service delivery.
• Leadership in Uncertain Times: The summit examines qualities and approaches modern leaders require to guide nations through geopolitical tensions, economic uncertainty, and rapid technological disruption, while fostering inclusive decision-making and maintaining public confidence amid complexity and change.
• Public Finance and Investment Flows: Significant attention is dedicated to how governments can fund essential services and infrastructure amid competing priorities, attract sustainable investment, and use fiscal policy to support both immediate needs and long-term development goals, including green finance and digital economy taxation.
• Emerging Technologies and Policymaking: Discussions explore how to harness AI for better decision-making while managing risks such as bias and job displacement, regulatory frameworks for emerging technologies, governance implications of digital currencies, and ensuring technological benefits reach all populations equitably.
• IMF's Economic Resilience Assessment: IMF Managing Director Kristalina Georgieva addressed the summit, highlighting unexpected global economic resilience despite geopolitical tensions and trade policy uncertainty. The IMF has upgraded its global growth projections, including for the UAE and Gulf economies, reflecting robust regional performance.

Ministry of Statistics Revises Consumer Price Index Base Year to 2024

In the News: The Ministry of Statistics and Programme Implementation (MoSPI) announced a comprehensive revision of India's Consumer Price Index (CPI), shifting the base year from 2012 to 2024. This major overhaul, based on the Household Consumption Expenditure Survey (HCES) 2023-24, represents the most substantial update to India's primary inflation measurement tool in over a decade. The first CPI 2024 data is scheduled for release on February 12, 2026, with significant changes including reduced food weight, increased housing weight, an expanded basket of 358 items, and incorporation of online market data for the first time.

Key Points:

• Base Year Revision: The CPI base year has been updated from 2012 to 2024 to reflect dramatically transformed consumption patterns of Indian households in the post-pandemic era. The revision is based on the Household Consumption Expenditure Survey (HCES) 2023-24, which captures detailed household spending data across all states and union territories.
• Food & Beverages Weight Reduction: The weight of Food & Beverages in the CPI basket has been reduced from 45.86% to 36.75%, a decline of approximately 9 percentage points. This reflects rising incomes and dietary diversification, consistent with Engel's Law that as incomes rise, food's share of expenditure declines.
• Housing Weight Surge: Housing weight has nearly doubled from 16.91% to 17.66%, reflecting rising real estate prices, rental costs, urbanization, and improved measurement methods including imputed rent for owner-occupied properties. Housing inflation will now have significantly greater impact on overall CPI inflation.
• Expanded Item Basket: The CPI basket expands from 299 items to 358 items (approximately 20% increase), incorporating new products and services such as e-commerce products, digital services, streaming subscriptions, and other contemporary consumption categories to better capture modern spending patterns.
• Education as Standalone Category: Education has been elevated from a subcategory to a standalone category, reflecting rising household expenditure on education and its growing importance in household budgets. This enables separate tracking of education inflation for targeted policy responses.
• COICOP 2018 Adoption: The revised CPI adopts the Classification of Individual Consumption According to Purpose (COICOP) 2018 framework, an international standard developed by the UN Statistical Commission. This enables direct comparison of India's CPI with other countries and ensures statistical consistency with global best practices.
• Release Timeline: The first CPI 2024 data will be released on February 12, 2026. MoSPI will release a linking factor between CPI 2012 and CPI 2024 to enable comparison and maintain continuity in historical inflation analysis.