UPSC Mains Current Affairs for 7 June 2026

EAC-PM Meeting – Strengthening India’s Growth Momentum Amid Global Uncertainty

June 7, 2026

EAC-PM Latest News

The Indian PM chaired a meeting of the Economic Advisory Council to the Prime Minister (EAC-PM) to -
- Review India’s economic outlook,
- Discuss reform priorities,
- Assess external risks such as the West Asia conflict, and
- Examine measures to sustain high economic growth.
The discussions also focused on attracting foreign capital, improving ease of doing business, and reducing vulnerabilities arising from climatic uncertainties.

Key Outcomes of the Meeting

Focus on sustaining economic growth: The EAC-PM deliberated on policy measures to maintain and accelerate India's growth trajectory despite a challenging global environment marked by geopolitical tensions and economic uncertainty.
Major themes included:
- Strengthening long-term economic transformation.
- Deepening structural reforms.
- Enhancing Ease of Doing Business (EoDB) and Ease of Living.
- Preserving macroeconomic stability while promoting investment-led growth.

Measures to Boost Foreign Capital Inflows

Tax reforms for foreign investors: The government announced significant tax relief measures for Foreign Institutional Investors (FIIs):
- Removal of Short-Term Capital Gains Tax (STCG) on investments in government bonds.
- Removal of Long-Term Capital Gains Tax (LTCG) on such investments.
- Elimination of withholding tax on interest income earned by FIIs from government securities.
RBI measures: The Reserve Bank of India (RBI) complemented these reforms by:
- Easing norms for banks to mobilise foreign currency deposits.
- Reviving the Foreign Currency Non-Resident (Bank) [FCNR(B)] Deposit Scheme, under which the RBI bears exchange-rate hedging costs.
- Providing a temporary concessional forex swap facility for Public Sector Undertakings (PSUs) raising External Commercial Borrowings (ECBs).
Significance: These measures are expected to improve liquidity and make India more attractive to global investors.

Potential Foreign Fund Inflows

Estimated inflows of around $70 billion:
- According to discussions at the meeting, the combined impact of fiscal and monetary measures could attract nearly $70 billion in foreign capital.
- A major share depends on India's inclusion in the Bloomberg Global Aggregate Bond Index, which would:
  - Increase passive investments from global funds tracking benchmark indices.
  - Expand demand for Indian government securities.
  - Reduce government borrowing costs by lowering bond yields.
Importance of global bond indices:
- India has already been included in:
  - JPMorgan Emerging Market Bond Index (from June 2024).
  - Bloomberg Emerging Market Local Currency Index (from January 2025).
  - FTSE Russell Emerging Market Bond Index (from September 2025).
- Inclusion in Bloomberg’s flagship Global Aggregate Bond Index could potentially bring $20–25 billion in additional inflows over about ten months.

Assessment of Global and Domestic Risks

West Asia conflict:
- No major immediate concerns were expressed regarding its impact on India.
- However, geopolitical developments continue to be monitored due to their implications for energy prices, trade flows, and global financial markets.
El Niño and monsoon vulnerability:
- A major concern discussed was the possibility of sub-par rainfall due to El Niño conditions.
- The need to reduce India's dependence on monsoon outcomes.
- The discussion highlighted the importance of climate-resilient agriculture, irrigation expansion, water management reforms, and diversification of growth drivers beyond agriculture.

Strong Economic Performance

Better-than-expected GDP growth:
- The Council took note of encouraging growth data for FY 2025–26.
- For example,
  - GDP growth of 7.8% in the January–March 2026 quarter.
  - Full-year provisional GDP growth estimate revised to 7.7%, higher than the earlier estimate of 7.6%.
Significance:
- Growth remained robust despite global uncertainties and the overlap of the West Asia conflict with the final month of the quarter.
- Strong economic performance reinforced investor confidence and supported positive market sentiment.

About the EAC-PM

Nature and composition:
- It is a non-constitutional, non-permanent and independent advisory body constituted directly by an executive order.
- It has been constituted several times since the independence of India. In the latest occurrence, the council was reconstituted in 2017, and is currently chaired by S. Mahendra Dev.
- It includes full-time and part-time members from economics, finance, academia, banking, and public policy.
Functions:
- Provides inputs to the PM on economic and related policy matters.
- Advises on macroeconomic policy.
- Evaluates economic trends and risks.
- Suggests reforms for sustainable and inclusive growth.
- Provides analytical inputs on development priorities.

Conclusion

The EAC-PM meeting underscored India's strategy of combining structural reforms, investor-friendly taxation, monetary support measures, and macroeconomic stability to sustain high growth.
While geopolitical tensions and climate-related risks remain concerns, strong GDP performance, prospects of higher foreign capital inflows, and continued reform momentum position India favourably for long-term economic development.

Source: TH | IE

EAC-PM FAQs

Q1: How can inclusion of Indian government bonds in global bond indices benefit the Indian economy?

Ans: It can attract large passive foreign capital inflows, deepen debt markets, lower government borrowing costs.

Q2: What measures were announced to enhance foreign investment in Indian government securities?

Ans: The government removed STCG, LTCG, and withholding taxes on FII investments in government bonds.

Q3: Why is El Niño a concern for India's economic growth?

Ans: El Niño can cause deficient monsoon rainfall, adversely affecting agriculture and rural incomes.

Q4: What is the role of the Economic Advisory Council to the Prime Minister (EAC-PM)?

Ans: EAC-PM is an independent advisory body that provides policy recommendations on economic management.

Q5: What does India's GDP growth of 7.7% in FY 2025–26 indicate?

Ans: It reflects the resilience of the Indian economy amid global geopolitical uncertainties.

Supreme Court Backs 28% GST and State Bans on Online Gaming

June 7, 2026

Online Gaming Latest News

Recently, the Supreme Court delivered two landmark rulings with major consequences for India's online real-money gaming industry. A bench of Justices J.B. Pardiwala and R. Mahadevan:
- Upheld the constitutional validity of the Centre's retrospective 28% GST levy on online gaming companies.
- Affirmed the validity of State laws banning real-money gaming platforms.
These rulings come on top of an already difficult period for the industry, which has been reeling since the Promotion and Regulation of Online Gaming Act, 2025 effectively prohibited real-money gaming in India.

Background: The Two Sets of Cases

The two judgments arose from separate but related disputes.

Case 1: State Bans on Online Betting

In 2021, Tamil Nadu and Karnataka enacted laws criminalising online betting, including penalties and imprisonment. Both the Madras and Karnataka High Courts struck down these laws.
The state governments then appealed to the Supreme Court, arguing that:
- betting and gambling are State subjects under Entry 34 of List II (State List) of the Seventh Schedule of the Constitution, and
- that the restrictions were necessary to address addiction and social harm.

Case 2: The GST Dispute

In August 2023, the GST Council clarified that all online games involving bets or wagers — whether skill-based or chance-based — would attract 28% GST on the full value of money staked by players.
The Directorate General of GST Intelligence (DGGI) then issued tax demand notices — not just for the period after October 1, 2023 (when the amended rules came into force), but also retrospectively for earlier periods.
The total tax demands ran into several lakh crore rupees.
Gaming companies challenged this before the Bombay and Karnataka High Courts, which initially ruled in their favour. The Union government then appealed to the Supreme Court.

Why the Court Upheld the 28% GST

The industry made two main arguments.
First, GST should be levied only on the platform's commission — the fee it retains — not on the entire pool of money staked by players.
Second, online games of skill deserve to be treated differently from gambling, and taxing them at 28% on the full stake was commercially unviable.

What the Court Said

The Court rejected both arguments. It drew a clear distinction between a skill-based competition and an online gaming platform involving money stakes.
In a genuine skill contest, a player pays an entry fee to compete.
But online gaming platforms are structured around wagering — they encourage repeated participation through discounts and bonuses, making the activity fundamentally different.
More importantly, the Court held that once money is staked on an uncertain outcome, the distinction between skill and chance becomes irrelevant for GST purposes.
The Central GST Act already expressly includes actionable claims relating to lottery, betting, and gambling in the tax net.
Parliament was therefore competent to levy GST on online gaming involving money stakes.
On the retrospective nature of the demand, the Court held that the 2023 amendments did not create a fresh tax — they merely clarified and standardised what the law already said. That is why they could operate retrospectively.

Why the Court Upheld State Bans

The Court's reasoning on State bans rested on a foundational legal principle.
It held that betting and gambling are res extra commercium — a Latin phrase meaning activities that fall outside legitimate commerce.
Because they sit outside normal trade and business, they do not enjoy the constitutional protections available to commercial activities.
The Court further held that even if a game is skill-based, the introduction of money stakes imparts the character of wagering to it. Once it becomes a wagering activity, States have full legislative competence to regulate or ban it.
On fantasy sports — a major segment of the online gaming industry that had long claimed protection as a "game of skill" — the Court was unpersuaded. It noted that even the most sophisticated predictive models cannot forecast sporting outcomes with certainty.
The Court also made a broader sociological observation: the widespread availability of smartphones and digital payment systems has effectively turned every mobile phone into a virtual gambling house.
States, it said, can draw legislative support not only from Entry 34 (betting and gambling) but also from Entry 1 (public order) to justify restrictions.

The Wider Implications: A New Constitutional Question

The ruling has also created an unexpected complication for the Centre. The Supreme Court clearly held that betting and gambling are State subjects under Entry 34, and upheld State laws regulating them.
But the Promotion and Regulation of Online Gaming Act, 2025 — a Central law — claims legislative competence under Entry 52 of the Union List, which allows Parliament to regulate industries in the public interest.
There is now a direct tension: if online gaming is a State subject, can Parliament legislate on it under Entry 52?
The validity of the 2025 Central law is likely to be challenged in court on exactly this ground.
The outcome will determine whether India's online gaming regulation ultimately rests with the states or the Centre.

Source: TH

Online Gaming FAQs

Q1: What is the significance of Supreme Court Backs 28% GST and State Bans on Online Gaming?

Ans: Supreme Court Backs 28% GST and State Bans on Online Gaming validates both the GST framework and state powers to regulate wagering-based online gaming activities.

Q2: Why did the Court uphold the 28% GST on online gaming?

Ans: In Supreme Court Backs 28% GST and State Bans on Online Gaming, the Court held that money-stake gaming falls within taxable wagering activities under GST laws.

Q3: How did the Court view skill-based online games?

Ans: Supreme Court Backs 28% GST and State Bans on Online Gaming clarifies that once money is staked on uncertain outcomes, distinctions between skill and chance become less relevant for GST purposes.

Q4: Why did the Court support state bans on online gaming?

Ans: Supreme Court Backs 28% GST and State Bans on Online Gaming recognizes betting and gambling as state subjects, allowing states to regulate or prohibit such activities.

Q5: What constitutional issue arises from Supreme Court Backs 28% GST and State Bans on Online Gaming?

Ans: Supreme Court Backs 28% GST and State Bans on Online Gaming may trigger fresh legal challenges over whether online gaming regulation falls under state or central legislative authority.

Project Glasswing: India’s Cybersecurity Agencies to Get Access to Anthropic’s Powerful AI

June 7, 2026

Project Glasswing Latest News

US AI company Anthropic is extending access to its restricted cybersecurity programme, Project Glasswing, to select organisations in India — including key government agencies responsible for protecting the country's critical infrastructure.
This follows Anthropic's announcement that it would expand the programme from its initial US and UK participants to over 15 countries, with India being a significant addition.

What Is Project Glasswing and What Is Mythos

Anthropic is one of the world's leading AI companies, known for its AI model Claude.
But it has also developed a far more powerful and restricted model called Claude Mythos — described as a frontier AI model capable of identifying critical software vulnerabilities at a level that could "fundamentally alter the balance between cyber attackers and defenders."
This is a significant claim. Most cybersecurity today depends on human experts finding software weaknesses before attackers do.
A model that can do this at scale and speed could be a game-changer — but in the wrong hands, it could also be catastrophically dangerous. That is why Anthropic has kept Mythos strictly restricted and not publicly released.
Project Glasswing is the controlled programme through which Anthropic shares access to Mythos Preview (the testing version) with a carefully vetted set of trusted organisations.
Each organisation must meet Anthropic's security requirements before gaining access.

Which Indian Agencies Are Getting Access

The following Indian government bodies are understood to have received — or are in line to receive — access to Mythos:
- I4C — Indian Cyber Crime Coordination Centre
- CERT-In — Indian Computer Emergency Response Team (the nodal agency for cybersecurity incidents in India)
- NCIIPC — National Critical Information Infrastructure Protection Centre (falls under the National Security Advisor in the Prime Minister's Office)
- DIP — Department of Telecommunications' Digital Intelligence Platform
Additionally, some cybersecurity-focused research institutions have received access, and discussions are underway to extend it to cybersecurity and AI teams within India's largest IT services companies.
The purpose is specific: NCIIPC and CERT-In requested access to use Mythos to identify vulnerabilities within India's banking and power infrastructure — before attackers can find and exploit them.

Why India Is Particularly Concerned

India's concern about Mythos is two-sided — both as an opportunity and as a threat.

The Defensive Opportunity

India's critical infrastructure — banking systems, power grids, telecom networks — is a high-value target for cyberattacks.
A tool that can proactively find and fix software vulnerabilities in these systems before adversaries exploit them would be enormously valuable.

The Offensive Threat

At the same time, India's government was also worried about what Mythos could do to India's systems in the wrong hands.
Finance Minister Nirmala Sitharaman, in April 2026, held a high-level meeting with IT Minister Ashwini Vaishnaw to assess risks posed by Mythos to India's banking sector.
The meeting resulted in concrete directions: the Indian Banks' Association (IBA) was asked to develop a coordinated institutional response mechanism, and banks were directed to engage top cybersecurity professionals to continuously strengthen their defensive and monitoring capabilities.

The Geopolitical Dimension: Anthropic vs. the US Pentagon

As per various reports, Anthropic is helping the US National Security Agency (NSA) deploy Mythos for offensive cyber operations — specifically to infiltrate networks of countries like China and Iran.
This creates an awkward contradiction. Anthropic is simultaneously:
- Providing Mythos to trusted allies (including India) for defensive cybersecurity.
- Reportedly assisting the NSA with offensive cyber operations.
- Fighting a legal battle with the US Department of Defense (which includes the NSA) over the boundaries of AI use.
  - The legal dispute arose because Anthropic drew a firm line — it refused to allow its Claude AI models to be used for mass surveillance of US citizens or lethal autonomous drones.
  - The Pentagon responded by labelling Anthropic a "supply-chain risk" — an unprecedented designation for a US company.
  - Anthropic has sued over this label.

Conclusion

AI is becoming a national security asset. Governments are no longer just regulating AI — they are actively seeking to deploy frontier AI models for defence and cybersecurity. The race to access the most powerful AI tools is becoming part of geopolitical competition.
Critical infrastructure protection is increasingly about software. Banking systems, power grids, and communications networks all run on software. Identifying and fixing vulnerabilities in that software is now as important as physical security.
AI companies are navigating unprecedented ethical and geopolitical pressure. Anthropic's tension with the Pentagon illustrates that even safety-focused AI companies face difficult choices about how their models are used — and by whom.

Source: IE

Project Glasswing FAQs

Q1: What is Project Glasswing?

Ans: Project Glasswing is Anthropic's restricted cybersecurity programme that provides vetted organisations access to advanced AI tools for identifying software vulnerabilities.

Q2: Why is Project Glasswing important for India?

Ans: Project Glasswing can help Indian agencies detect vulnerabilities in banking, power, telecom, and other critical infrastructure before cyber attackers exploit them.

Q3: Which Indian agencies will benefit from Project Glasswing?

Ans: Project Glasswing is expected to support agencies such as CERT-In, NCIIPC, I4C, and the Department of Telecommunications' Digital Intelligence Platform.

Q4: What is the AI model used in Project Glasswing?

Ans: Project Glasswing provides controlled access to Claude Mythos, Anthropic's advanced cybersecurity-focused AI model designed to identify critical software weaknesses.

Q5: What are the concerns surrounding Project Glasswing?

Ans: Project Glasswing raises concerns about misuse of powerful AI tools, cyber warfare, national security implications, and the balance between offensive and defensive cyber capabilities.

What is Dark Net?

June 7, 2026

Why in news?

The Narcotics Control Bureau busted a pan-India drugs trafficking network operating on the dark web with the largest ever seizure of 15,000 LSD blots in one operation.
- LSD or lysergic acid diethylamide is a synthetic chemical based-drug and is categorised as a hallucinogen.
- Possession of 0.1 gram of LSD, which is the commercial quantity for the hallucinogenic drug, invites strict legal action under the Narcotics and Psychotropic Substances (NDPS) Act.
The network, which operated in the darknet and used cryptocurrencies for payments, was spread across Poland, the Netherlands, the US and various states in India.

What is Dark Net?

Dark Net, also referred to as dark web or darknet, is a maze of secret websites which can be accessed only through encrypted channels.
- In other words, it is the hidden collective of internet sites only accessible by a specialized web browser.
It is used for keeping internet activity anonymous and private, which can be helpful in both legal and illegal applications.

How it Operates?

The dark web operates in secrecy using The Onion Router (ToR).
- Tor is free and open-source software for enabling anonymous communication.
- It is an Internet based system to prevent eavesdropping and traffic analysis attacks.
Experts say darknet is very tough to penetrate owing to its end-to-end encryption.
- The access to darknet is possible only through specialized browsers like Tor, Freenet, I2P and Tails to surf the darknet anonymously.
The privacy-centric browser like Tor routes the web page requests through proxy servers thus making your IP address untraceable.

The Dark Web vs. the Deep Web

Both the dark and deep web share one thing in common: Neither can be found in search engine results.
The difference between them primarily lies in how their content is accessed.
- Deep web pages can be accessed by anyone with a standard web browser who knows the URL.
- Dark web pages, in contrast, require special software with the correct decryption key, as well as access rights and knowledge of where to find the content.

What are the Uses of Dark Net?

Nowadays, darknet has become a hidden platform meant for the sale and purchase of much of the contraband items like
- drugs, arms, pornographic content and other illegal activities.
Due to its ability to provide an anonymous cover, the platform has become a safe haven for criminals dealing in every kind of illegal activity.
The matter gets complicated with the evolution of cryptocurrencies like bitcoin.
It is also used by people who require privacy for entirely legal reasons.
- E.g., the exchange of proprietary business information or communication by political activists.
- Darknet helps to protect the right to freedom of information and online privacy of individuals and is therefore often used by journalists and other activists.
One ethical use for the dark web is for law enforcement and threat intelligence agencies.
These types of professionals may search the dark web for signs of cybersecurity or data breaches, illegal activity, scams or other emerging threats.

Is accessing the dark web legal in India?

Accessing the dark web is legal in India. The Indian government does not recognize it as an illegal activity.
However, this doesn’t mean one is free to do whatever he/she wants.
Various activities like child pornography, buying guns, pistols, rifles, drugs, etc. are considered to be illegal.
Hence, the dark web is not illegal. It is the activity or the intent of a person that is taken into account while using the dark web.

What are the Regulatory Challenges in regulating the dark web?

The biggest challenge with respect to regulation of the dark web is its encryption technique and anonymity.
Apart from the strong encryption techniques, most financial transactions on the dark web are performed in cryptocurrencies which provide further anonymity.
The trans-border nature of the dark web further complicates the matter.
Ensuring right to freedom of information and online privacy while eliminating while eliminating the illegal activities thriving on dark web is a challenge.

What India is doing?

In August 2021, at the BRICS meeting, India discussed the misuse of the darknet for drug trafficking during a webinar conference of BRICS nations.
- The group of nations will soon be coming up with a solution.
A comprehensive legislative policy to deal with this domain is being discussed.
- It was deliberated upon in 56th All-India DGP-IGP Conference being held at UP Police headquarters, Lucknow.

Way forward

Implement such a system where freely available VPNs are banned.
- For this, the government should create an authority under the Information Technology Act, 2000.
- The government may create a mandatory charge for VPN registration.
Develop close cooperation between public and private organisations
- It will help in dealing with the new and emerging technological challenges of the dark web, by providing solutions such as new encrypting tools, etc.
Foster international cooperation in the form of multilateral exchanges
- It will help in dealing with the challenges of the trans-border nature of the dark web.
Adopt China Model
- Many security experts argue that it is high time that India adopted the ‘China model’, wherein the great firewall of China, blocks Tor traffic.
- On similar lines, The Incredible Firewall of India will affect a body-blow to flourishing darknet crime.

Source: Darknet-based drug cartel busted with ‘largest ever’ LSD seizure, six arrests, says NCB | The Hindu | IDSA | Times of India | Indian Express \ Techtarget

Dark Net FAQs

Q1: What is Virtual Private Network (VPN)?

Ans: A Virtual Private Network (VPN) is a technology that creates a secure and encrypted connection over a public network, such as the internet. It allows users to establish a private network across a public network, effectively extending their private network resources and securing their online activities.

Q2: What is The Onion Router (ToR)?

Ans: The Onion Router (Tor) is a free and open-source software project that provides anonymous communication over a network. It was initially developed by the United States Naval Research Laboratory in the 1990s and has since become a widely used tool for online privacy and security.