Carbon Capture Push in Union Budget 2026 | Thaipusam | India–US Signed Trade Agreement | Deendayal Antyodaya Yojana–National Rural Livelihoods Mission

Carbon Capture Push in Union Budget 2026

(Environment)

Context

• The Union Budget 2026–27 announced a ₹20,000 crore push for Carbon Capture, Utilisation and Storage (CCUS) over five years to support India’s climate transition.

Carbon Capture, Utilisation and Storage (CCUS)

• CCUS refers to technologies that capture carbon dioxide emissions from industrial processes and power generation.
• The captured CO₂ is either stored underground in geological formations or utilised in products such as chemicals, fuels, or construction materials.

CCUS supports India’s commitment to:

• Achieve net-zero emissions by 2070.
• To reduce emission from industries such as steel, aluminium, cement and fertilizers.
• If these industries decarbonise their production processes, they may escape the tax burden under Carbon Border Adjustment Mechanism (CBAM).

India’s Emission Reductions Commitments

• India has launched the LiFE mission (Lifestyle for Environment) and updated its NDCs (Nationally Determined Contributions) under the Paris Agreement.

Under its updated NDC 2022, India pledges:

1. 45% reduction in emissions intensity (amount of CO₂ per unit of GDP) by 2030, compared to 2005 levels.
2. 50% of installed electricity capacity will come from non-fossil fuel sources by 2030.
3. Creating a carbon sink of 2.5 to 3 billion tonnes of CO₂ equivalent (GtCO₂e) by increasing forests and tree cover.

Thaipusam

Culture

News

• Prime Minister Narendra Modi greeted everyone with a blessed Thaipusam.

Thaipusam

• The name “Thaipusam” is a combination of “Thai” (the Tamil month) and “Poosam,” the star at its highest point during the festival.
• It is celebrated on the full moon in the Tamil month of Thai.
• It is a Hindu festival celebrated to honour Lord Murugan (also known as Lord Kartikeya), the Hindu god of war, victory, and wisdom, while also being a symbol of courage, determination, and spiritual growth.
• It is widely celebrated by the Tamil community in Tamil Nadu India and across the world, especially in Sri Lanka, Singapore and Malaysia.

India–US Signed Trade Agreement

(IR)

In News

• India and the United States have announced a new trade deal, lowering tariffs and setting ambitious targets for bilateral trade.
• In August 2025, the US had levied tariffs up to 50% (25% reciprocal + 25% additional duty) linked to India’s Russian oil imports.

About the India–US Trade Deal

• Tariff reduction: US reciprocal tariffs on Indian goods reduced from 25% to 18%, effective immediately.
• Additional 25% duty withdrawn, which had earlier been imposed.
• US claims on broader commitments: The US asserts the deal includes zero tariffs and non‑tariff barriers for US goods and that India committed to buy over $500 billion of US products across energy, tech, agriculture, coal,
• India will progressively reduce tariffs and non-tariff barriers against US goods.

Importance of the Deal

• It strengthens India–US ties amid global geopolitical shifts, especially regarding China.
• Helps counter China’s dominance in global trade and manufacturing.
• Lower tariffs could improve competitiveness for Indian exporters (farmers, MSMEs, entrepreneurs) and attract investment.
• This would support Make, Design and Innovate in India for the world.
• Diversifying oil imports may reduce India’s dependence on Russia, though at higher costs.
• It would help stabilize the rupee amid global economic uncertainty.
• It will position India as a key partner in US-led trade and security frameworks.

Deendayal Antyodaya Yojana–National Rural Livelihoods Mission

Government Policy & Intervention

Context

• The Deendayal Antyodaya Yojana–National Rural Livelihoods Mission (DAY NRLM) is transitioning into a new phase, often referred to as NRLM 2.0, and prepares for the next five-year cycle (2026–27 to 2030–31).

Deendayal Antyodaya Yojana

• Launch: It was launched in 2010 by restructuring the earlier Swarnajayanti Gram Swarozgar Yojana (SGSY), the initiative was renamed in 2016 as Deendayal Antyodaya Yojana – National Rural Livelihood Mission (DAY-NRLM).
• Financing – It is a centrally sponsored scheme.
• Aim – to reduce rural poverty through self-employment and skilled wage employment.
• Women Centric Model: The mission promotes economic independence by linking women to credit, markets, and technology through SHGs and federations.