Daily Current Affairs โ 22 July 2026
Daily Current Affairs ยท 22 July 2026
10 fully-analysed topics ยท 30 bilingual MCQs ยท 3 embedded videos ยท built for UPSC Prelims & Mains
๐ฏ 30 MCQs
๐ฌ 3 Videos
๐ฎ๐ณ Hindi + English
UPSC Current Affairs MCQ โ 22 July 2026
10 UPSC-standard bilingual MCQs covering today's top stories ยท 10-sec timer per question
Score yourself as you go. Get a feel for how UPSC-level questions are framed around the day's news.
Economy
India's Rising Inflation
India's Wholesale Price Index (WPI) inflation has surged to around 10%, marking its sharpest rise in over a decade (excluding the Covid-19 period).
- India's inflation is increasingly driven by cost-push factorsโrising global crude oil prices
- Containing inflation requires a coordinated strategy combining prudent monetary policy with fiscal measures
- Retail Inflation (CPI): India's headline Consumer Price Index (CPI) inflation climbed to an 18-month high of 4.38% in June 2026
- Wholesale Inflation (WPI): WPI inflation rose to 9.87% in June 2026 from 9.68% in May
Show 6 more facts
- Food Inflation (CFPI): The Consumer Food Price Index (CFPI) remains the most volatile and elevated component
- Sticky Core Inflation: Core inflation (excluding volatile food and fuel) remains stubbornly rigid
- Inflation Dynamics: The narrowing gap between WPI and CPI indicates a "pass-through" effect
- A sharp rise in WPI, led by fuel and power inflation, has increased production and logistics costs, triggering a price pass-through effect asโฆ
- Meanwhile, sticky core inflation keeps underlying inflationary pressures persistent and constrains the Reserve Bank of India's (RBI) monetary policyโฆ
- Geopolitical Energy Shocks: India imports nearly 90% of its crude oil requirements
Which statement correctly describes India's Rising Inflation?
โ Correct! That fact belongs to this topic.
โ Not quite โ that fact is from another headline. The green option is right.
Economy
WPI Base Year Revised to 2022โ23 and Producer Price Index
The Office of Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT), has announced the revision of the Base Year of theโฆ
- Expansion of the WPI Basket: To better reflect modern economic realities
- Inclusion of Renewable Energy: Reflecting India's green energy transition
- Structural Reorganization of Energy Tracking: Crude Petroleum and Natural Gas have been shifted out of the 'Primary Articles' category andโฆ
- Methodological Shift to Gross Value of Output (GVO): The derivation of weights has been upgraded to utilize Gross Value of Output (GVO)
Show 6 more facts
- Advanced Statistical Computation: The elementary indices will now be calculated using a short-term
- Introduction of the PPI Framework: The new series will simultaneously release the Output Producer Price Index (OPPI)
- Divergent Pricing Valuation Principles: The WPI
- About: The Wholesale Price Index (WPI) is a key macroeconomic indicator used to measure the average change in the prices of goods traded in bulk atโฆ
- Key Features: Goods-Based Index: WPI measures price changes only in physical goods and excludes services such as healthcare, education, and telecom.
- First Point of Sale: It captures prices at the wholesale or producer level, making it an important indicator of supply-side inflation.
5. What is the significance of Service PPI? It captures inflation in major service sectors such as banking
Which statement correctly describes WPI Base Year Revised to 2022โ23 and Producerโฆ?
โ Correct! That fact belongs to this topic.
โ Not quite โ that fact is from another headline. The green option is right.
Economy
Food Inflation in India
In recent times, Consumer food prices were 9.9% higher year-on-year, with food inflation now largely limited to cereals and pulses, and theโฆ
- Inflation in Cereals and Pulses: Estimates show food inflation is being increasingly driven by two items: Cereals (11.9%) and pulses (13%) in theโฆ
- Most governments naturally tend to privilege consumers over producers due to political reasons, which favours numerical strength.
- In the current scenario, the government must prioritize listening to producers, particularly in regard to two agricultural/food commodities, amongโฆ
- Demand for both oil and meal (the residual de-oiled cake, used as livestock feed ingredient) is weak.
Show 6 more facts
- A major reason for the bearish market sentiment has to do with record imports of edible oil
- There isn't much buying of powder, butter or ghee happening
- Compounding the industry's problems is the reported spurt in sales of ghee adulterated with vegetable fat
- Overproduction: Farmers in India often respond to Minimum Support Prices (MSPs) by increasing production of MSP-supported crops, like wheat and rice
- Inadequate Procurement and Distribution: While the government sets MSPs and procures crops from farmers
- Consumer Food Price Inflation, (CFPI), is a specific measure of inflation that focuses exclusively on the price changes of food items in a consumer'sโฆ
Which statement correctly describes Food Inflation in India?
โ Correct! That fact belongs to this topic.
โ Not quite โ that fact is from another headline. The green option is right.
Economy
Current Account Deficit
Recently, the government released data showing that India's exports and imports decreased by 6.59% and 3.63%, respectively, in January 2023, thereโฆ
- The moderation in CAD is expected to be aided by the fall in commodity prices
- About: Current account deficit (CAD) is when the value of a country's imports of goods and services is greater than its exports.
- CAD and fiscal deficit together make up twin deficits that can impact the stock market and investors
- The CAD is significant because it affects the economy, stock markets, and people's investments.
Show 6 more facts
- A lower CAD can boost investor sentiment and make the country's currency more attractive to investors.
- A surplus in the current account indicates that money is flowing into the country
- The CAD for the first half of 2022-23 was 3.3% of GDP
- Weaker Currency: When a country's imports exceed its exports
- This can lead to an increase in debt levels, which can further harm the economy.
- Encourage Exports: Increasing exports is one of the most effective ways to reduce CAD
Which statement correctly describes Current Account Deficit?
โ Correct! That fact belongs to this topic.
โ Not quite โ that fact is from another headline. The green option is right.
Economy
Indiaโs Statistical Database Overhaul
The Indian government has executed a wide-ranging, systemic upgrade of its core statistical databases to improve their timeliness, representativeness, accuracy, and coverage.
- The data modifications span key macroeconomic metrics
- India has modernized its statistical framework by updating the base years of GDP (2022-23)
- Despite these reforms, challenges such as delayed Census operations, inadequate coverage of the informal sector, concerns over institutionalโฆ
- IMF 'C' Grade Warning: The immediate institutional trigger for the overhaul was a 'C' grade (the second-lowest rating) issued by the Internationalโฆ
Show 6 more facts
- Over the subsequent 15 years, the Indian economy underwent a massive structural metamorphosis including the rapid formalization via the Goods andโฆ
- Legacy indices such as the Consumer Price Index (CPI) with Base Year 2012 continued to track outdated items like VCRs
- The growth rate of the real economy is derived only after adjusting nominal data against the impact of inflation (via the GDP Deflator).
- Outdated inflation baskets distorted this deflation process
- RBI's Monetary Policy Committee (MPC) relies strictly on the Consumer Price Index (CPI) to gauge retail inflation and determine benchmark interestโฆ
- Public sector administrative adjustments, such as Dearness Allowance (DA) and Dearness Relief for current and former government personnel, areโฆ
The growth rate of the real economy is derived only after adjusting nominal data against the impact of inflation (via the GDP Deflator).
Which statement correctly describes Indiaโs Statistical Database Overhaul?
โ Correct! That fact belongs to this topic.
โ Not quite โ that fact is from another headline. The green option is right.
๐ Indian History MCQ Quiz ยท เคญเคพเคฐเคคเฅเคฏ เคเคคเคฟเคนเคพเคธ
10 bilingual MCQs ยท Indian History ยท Members Only on YouTube
Today's rotation: Indian History. Take this break between news topics to sharpen the core concept.
Geography
Strait of Hormuz
Iran seized a Marshall Islands-flagged oil tanker while it was passing through the Strait of Hormuz and diverted it into Iranian territorial waters.
- Effect of Policies & Politics of Countries on India's Interests
- This incident has raised concerns about maritime security in one of the world's most strategic energy chokepoints.
- Strategic Location: It is a narrow maritime chokepoint (55โ95 km wide) between Iran and the Arabian Peninsula
- Major exporters such as Saudi Arabia, Iran, Iraq, Kuwait, UAE, and Qatar depend on this route, with over 80% of the oil headed toward Asian marketsโฆ
Show 3 more facts
- However, a complete shutdown of the Strait of Hormuz has never occurred, though the region has experienced major disruptions.
- Deepening the Malacca straits between Malaysia and Indonesia.
- Opening a new canal across the Kra isthmus between the Gulf of Siam and Andaman Sea.
Around 40% of India's crude oil imports and nearly 54% of its LNG imports pass through the Strait, underscoring its importance for India's energy security.
Which statement correctly describes Strait of Hormuz?
โ Correct! That fact belongs to this topic.
โ Not quite โ that fact is from another headline. The green option is right.
Economy
Depreciation of the Indian Rupee
The Indian Rupee (INR) has weakened beyond the 94 mark against the USD
- Currency Depreciation vs. Devaluation: Depreciation is a fall in value due to market forces (demand/supply)
- Causes for Depreciation of the Indian Rupee: Widening Current Account Deficit (CAD): The fundamental driver of the Rupee's prolonged weakness is theโฆ
- Geopolitical Supply Shocks: Uncertainties surrounding the West Asia conflict and tensions in the Strait of Hormuz are sustaining high energy prices
- Capital Flight & Safe-Haven Shift: The currency depreciation is exacerbated by sustained Foreign Portfolio Investment (FPI) outflows
Show 3 more facts
- Equity Market Contagion: The broader macroeconomic anxiety and war-related uncertainties triggered significant profit booking
- However, such intervention has limits, as it cannot reverse long-term structural pressures like trade deficits or high oil prices, and is constrainedโฆ
- It intervenes in the forex market by selling dollars from its foreign exchange reserves to reduce volatility
Which statement correctly describes Depreciation of the Indian Rupee?
โ Correct! That fact belongs to this topic.
โ Not quite โ that fact is from another headline. The green option is right.
Economy
Flexible Inflation Targeting Framework
The Reserve Bank of India (RBI) has affirmed the successful performance of the Flexible Inflation Targeting (FIT) framework in maintaining price stability.
- Context: Post the Global Financial Crisis, India experienced a mix of persistently high inflation and sluggish growth, prompting debate on improvingโฆ
- The adoption followed a Monetary Policy Framework Agreement signed between the Government of India and the RBI in 2015.
- It provides room to prioritize growth during downturns while returning to the inflation target path over the medium term.
- The current band provides flexibility to absorb shocks from food, fuel, and global volatility, with 94% of inflation staying within this range
Show 6 more facts
- Disinflation Achieved: Average inflation under FIT (2016โ2025) was 4.9%, down from 6.8% in the pre-FIT period.
- Anchoring Expectations: FIT helped stabilize long-term inflation expectations among consumers and investors, reducing uncertainty.
- Institutional Transparency: MPC voting, and communication improved RBI's policy credibility.
- Policy Flexibility: During Covid-19 and the Russia-Ukraine war, RBI shifted focus between inflation and growth based on macroeconomic needs.
- Public Accountability: In 2022, RBI formally reported to the Government after breaching the upper band for 5 consecutive quarters.
- Exogenous Shocks: Pandemic and global conflicts led to breaches of the upper threshold despite domestic policy prudence.
Which statement correctly describes Flexible Inflation Targeting Framework?
โ Correct! That fact belongs to this topic.
โ Not quite โ that fact is from another headline. The green option is right.
Economy
RBI Holds Repo Rate and Lowers GDP Growth Forecast
In its June 2026 review, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) unanimously voted to keep the policy repo rate unchangedโฆ
- Status Quo on Policy Rates: Policy Repo Rate: Retained at 5.25% under the Liquidity Adjustment Facility (LAF).
- Standing Deposit Facility (SDF) Rate: Unchanged at 5.00% (acting as the floor of the LAF corridor).
- Marginal Standing Facility (MSF) Rate: Maintained at 5.50% (acting as the ceiling of the LAF corridor).
- Geopolitical and Input Cost Shocks: Lingering international conflicts have pushed Indian basket crude oil prices to an average of USD 110/barrelโฆ
Show 6 more facts
- LTCG Tax Waiver: The Government of India has waived the 12.5% Long-Term Capital Gains (LTCG) tax and income tax on interest earned by Foreignโฆ
- This exact parity is also extended to individual Persons Resident Outside India (PROIs) under modified FEMA regulations.
- It decides the RBI's benchmark interest rates.
- It is a 12-member body including the Governor of RBI and is reconstituted every year.
- It functions under the chairmanship of the Union Finance Minister.
- Cut and optimize the Statutory Liquidity Ratio
Which statement correctly describes RBI Holds Repo Rate and Lowers GDP Growthโฆ?
โ Correct! That fact belongs to this topic.
โ Not quite โ that fact is from another headline. The green option is right.
Economy
Reorienting Indiaโs Private Capital Expenditure
Rising global tariffs and fluctuating external demand underscore the need to prioritize domestic markets for economic stability, thereby shifting the focus towards Indian private sector capital expenditure (Capex).
- About: It refers to funds spent on acquiring, upgrading, or maintaining physical assets like property, equipment, or technology
- The Indian government allocates capex through its annual budget, presented by the Finance Minister.
- Capex Expenditure of Rs 11.21 lakh crore (3.1% of GDP) earmarked in FY2025-26.
- As a countercyclical fiscal tool, Capex stabilizes the economy and supports long-term revenue generation through asset creation.
Show 6 more facts
- It also helps reduce liabilities via loan repayments and catalyses private investment, making it crucial for sustained economic development.
- Pre-liberalisation: Businesses thrived under inward-looking policies and protected domestic markets, earning supernormal profits.
- Post-liberalisation (1990s): Accumulated wealth enabled Indian firms to expand globally, acquire foreign entities, and build multinational operations.
- Present context: External demand shocks, driven by rising tariff barriers, are prompting closer government-business collaboration to sustain economicโฆ
- Overall Growth in Capex: Private sector capital expenditure (capex) increased by 66.3% between FY 2021-22 and FY 2024-25
- Nature of Investments: In FY25, around 49.6% of enterprises invested for income generation, 30.1% for upgradation, and 2.8% for diversification.
Which statement correctly describes Reorienting Indiaโs Private Capital Expenditure?
โ Correct! That fact belongs to this topic.
โ Not quite โ that fact is from another headline. The green option is right.
Simple Current Affairs MCQ โ 22 July 2026
10 accessible MCQs covering the same topics ยท great for quick revision
End your study session with these simpler MCQs to lock in recall of today's current affairs.
