Daily Current Affairs: 7 October 2026

The RBI raised the repo rate to 5.50%, while the Supreme Court closed a long-running legislative privilege case and took up fresh constitutional questions.

Intro

The 7 October 2026 digest covers major developments in India’s economy, judiciary, governance, infrastructure and defence.

It also looks at two international developments involving Ukraine and the future of lunar exploration.

India

1. RBI Raises Repo Rate to 5.50% as Inflation Risks Rise

Subject: Economy

What Happened — The Reserve Bank of India raised the policy repo rate by 25 basis points to 5.50% on 7 October. It was the first repo-rate increase since February 2023. The Monetary Policy Committee also shifted its stance from “neutral” to “calibrated tightening”. The RBI retained the Cash Reserve Ratio at 3% and raised its FY2026–27 growth projection to 7.1%, while increasing its inflation forecast.

Key Facts and Background

• The repo rate is the rate at which the RBI lends short-term funds to banks against eligible securities. Changes in it can influence borrowing costs across the economy.
• The six-member Monetary Policy Committee unanimously supported the 25-basis-point increase.
• The RBI’s decision came amid concerns about higher energy prices, inflationary pressures and global financial conditions.
• A 25-basis-point increase means the rate moved upward by 0.25 percentage points.

CLAT Connection — Distinguish the repo rate from the CRR and understand how monetary policy attempts to balance price stability with economic growth.

Common Confusion: A repo-rate hike is a monetary-policy decision, not a direct order requiring every bank to raise every loan rate by exactly the same amount.

2. Supreme Court Closes Two-Decade-Old Legislative Privilege Reference

Subject: Constitutional Law

What Happened — The Supreme Court closed a long-running constitutional reference concerning the relationship between legislative privilege and freedom of speech. The dispute originated from a 2003 Tamil Nadu Assembly resolution against The Hindu over an article concerning the then Chief Minister. The Assembly later withdrew the resolution in 2004. The seven-judge Bench therefore treated the proceedings as infructuous, while leaving the larger constitutional questions open.

Key Facts and Background

• Article 194 of the Constitution deals with the powers, privileges and immunities of State Legislatures and their members.
• Article 19(1)(a) protects freedom of speech and expression, including freedom of the press.
• The case raised questions about how legislative privilege interacts with constitutional freedoms.
• “Infructuous” means that circumstances have changed so that the court no longer needs to decide the original dispute.

CLAT Connection — The key distinction is between disposing of a case because it has become infructuous and deciding the underlying constitutional question on merits.

3. Supreme Court Considers Plea to Recall Split Verdict on Election Commissioners’ Appointment Law

Subject: Election Law and Constitutional Institutions

What Happened — The Supreme Court agreed to consider an application seeking recall of its September 2026 split verdict concerning the 2023 law governing appointments to the Election Commission of India. The plea was orally mentioned before Chief Justice Surya Kant. Another petitioner has separately filed a curative petition. The development does not itself overturn the earlier judgment; the Court is considering whether the recall plea should be heard.

Key Facts and Background

• The 2023 law governs the appointment process for the Chief Election Commissioner and other Election Commissioners.
• The Election Commission derives its constitutional basis from Article 324.
• A split verdict occurs when judges hearing the same matter reach differing conclusions and no single majority position emerges from the bench.
• A recall application and a curative petition are procedural mechanisms with different legal contexts; neither automatically nullifies a judgment.

CLAT Connection — Students should distinguish the constitutional status of the Election Commission under Article 324 from the statutory framework governing appointments.

Common Confusion: A plea seeking recall is not the same as a final judicial recall. The filing or mentioning of an application does not itself change the earlier judgment.

4. Punjab Challenges CBI Probe Ordered by High Court

Subject: Federalism and Criminal Investigation

What Happened — The Punjab government approached the Supreme Court challenging a Punjab and Haryana High Court direction for a CBI investigation into corruption allegations linked to the office of Chief Minister Bhagwant Mann. The CBI subsequently registered an FIR against six people and conducted searches at multiple locations. Punjab argues that the High Court’s direction raises federalism concerns. The Supreme Court is considering the State’s request for urgent hearing.

Key Facts and Background

• The CBI functions under the Delhi Special Police Establishment Act, 1946.
• Police and public order are primarily State subjects under the Constitution’s Seventh Schedule.
• State consent is generally relevant to CBI investigations, although constitutional courts have, in exceptional circumstances, directed CBI probes.
• The allegations remain allegations; the investigation and any subsequent prosecution must establish the facts through due process.

CLAT Connection — This development connects federalism with the constitutional power of High Courts and the Supreme Court to order investigations in exceptional cases.

5. Supreme Court’s Working Strength Rises to 37 After Three New Judges Take Oath

Subject: Judiciary

What Happened — Justices Sunita Agarwal, Devendra Kumar Upadhyaya and Aparesh Kumar Singh took oath as judges of the Supreme Court. Their elevation increased the Court’s working strength to 37 against a sanctioned strength of 38. The appointments followed a recommendation by the Supreme Court Collegium. Justice Sunita Agarwal’s elevation also increased the number of women judges on the Court.

Key Facts and Background

• Article 124 establishes the Supreme Court and provides the constitutional framework for appointment of its judges.
• Supreme Court judges are formally appointed by the President.
• The present judicial appointment system is shaped substantially by the Collegium system developed through the Judges Cases.
• The Supreme Court’s sanctioned strength has been increased over time through legislation.

CLAT Connection — Remember the distinction between the constitutional appointment power of the President and the recommendation-making role of the Collegium.

6. Cabinet Approves Integrated Transport and Logistics Authority

Subject: Infrastructure and Governance

What Happened — The Union Cabinet approved the creation of the Integrated Transport & Logistics Authority (ITLA) as a Special Purpose Vehicle. It is intended to improve coordination among transport sectors including roads, railways, ports, aviation and waterways. The authority will undertake research, planning, project appraisal, monitoring and impact assessment, and is expected to support preparation of a long-term National Transport Master Plan.

Key Facts and Background

• The initiative responds to fragmented planning across different transport ministries and agencies.
• ITLA will support multimodal integration, meaning the coordinated use of different modes of transport.
• It will complement initiatives such as the PM GatiShakti National Master Plan and the National Logistics Policy.
• The authority is designed to make infrastructure planning more data-driven and coordinated.

CLAT Connection — The issue links public administration, infrastructure planning and the economic idea of reducing logistics costs through multimodal connectivity.

7. ₹10,000-Crore SME Growth Fund Approved

Subject: Economy and MSMEs

What Happened — The Union Cabinet approved a ₹10,000-crore SME Growth Fund intended to provide long-term equity capital to high-potential small and medium enterprises. The initiative is designed to help viable businesses expand capacity, adopt technology, enter international markets and develop into larger enterprises. The government has highlighted manufacturing, services, technology and innovation-driven sectors as potential beneficiaries.

Key Facts and Background

• The fund is intended to address a shortage of patient, long-term equity capital available to growth-oriented SMEs.
• Equity capital differs from a conventional loan because it represents ownership rather than simply creating a repayment obligation.
• The policy is linked to the broader objective of developing globally competitive Indian enterprises.
• India’s MSME ecosystem is important for employment, manufacturing, exports and innovation.

CLAT Connection — Students should distinguish equity financing from debt financing and understand why access to growth capital matters for smaller enterprises.

8. India’s First National Household Travel Survey Provides New Mobility Data

Subject: Statistics and Public Policy

What Happened — India’s first National Household Travel Survey, covering the period July 2025 to June 2026, has emerged as a major new source of information on household travel behaviour. The survey examines how people travel, which transport modes they use, the purpose and frequency of journeys, and public-transport usage. Such information can help policymakers identify transport gaps and improve routes, accessibility and planning.

Key Facts and Background

• The National Household Travel Survey was conducted by the National Statistics Office under the Ministry of Statistics and Programme Implementation.
• Unlike vehicle-registration data, a travel survey focuses on people’s actual journeys and mobility patterns.
• Household-level mobility data can be useful for transport planning, accessibility and infrastructure decisions.
• The survey covers rural and urban areas across India, subject to the stated survey coverage.

CLAT Connection — This is an example of how official statistics can influence public-policy decisions and why survey methodology matters when interpreting data.

International

9. Russia Launches Major Missile and Drone Attack on Ukraine

Subject: International Relations

What Happened — Russia launched a large wave of drone and missile attacks across Ukraine on 7 October. Ukrainian authorities reported deaths and damage to residential buildings, industrial facilities and infrastructure, including in Kyiv and other regions. Russia said it targeted military-related facilities. The episode highlights the continuing conflict between Russia and Ukraine and the importance of air-defence systems and protection of civilian infrastructure.

Key Facts and Background

• The conflict began with Russia’s full-scale invasion of Ukraine in February 2022, although hostilities between the two countries date back earlier.
• International humanitarian law distinguishes between military objectives and civilian objects.
• The principle of distinction requires parties to armed conflict to distinguish civilians and civilian objects from military targets.
• Claims made by parties to an ongoing conflict should be treated with appropriate attribution unless independently established.

CLAT Connection — The story connects current affairs with the principles of distinction and civilian protection under international humanitarian law.

Common Confusion: A country’s claim that it targeted military infrastructure does not by itself establish that an attack complied with international humanitarian law.

10. NASA Plans Nuclear Power System for Future Lunar Operations

Subject: Science and International Space Law

What Happened — NASA’s plans for a lunar surface nuclear reactor have renewed attention on the role of nuclear power in future Moon missions. The proposed system is intended to provide reliable electricity for sustained lunar operations, where solar power can be limited by long lunar nights and permanently shadowed regions. The development also raises questions about the international legal framework governing nuclear activities and resource use in outer space.

Key Facts and Background

• NASA and the US Department of Energy have been working on a fission surface power system for future lunar missions.
• Nuclear power can provide continuous energy where sunlight is unavailable or unreliable.
• The Moon’s south polar region is of particular scientific interest partly because permanently shadowed areas may contain water ice.
• The 1967 Outer Space Treaty prohibits national appropriation of the Moon and other celestial bodies.

CLAT Connection — Students should connect technological developments in space with the basic principles of the Outer Space Treaty and the distinction between exploration and national appropriation.

Quick Revision Points

1. The RBI raised the repo rate by 25 basis points to 5.50% on 7 October 2026.
2. The Supreme Court closed the long-running Tamil Nadu legislative privilege reference as infructuous, while leaving broader constitutional questions open.
3. A plea seeking recall of the Supreme Court’s split verdict on the 2023 Election Commissioners appointment law is being considered.
4. Punjab has challenged the High Court-directed CBI probe before the Supreme Court.
5. Three new judges increased the Supreme Court’s working strength to 37.
6. The Union Cabinet approved the Integrated Transport & Logistics Authority and a ₹10,000-crore SME Growth Fund.
7. The National Household Travel Survey provides nationwide data on actual travel behaviour and transport usage.
8. Russia launched a major attack on Ukraine on 7 October, while NASA’s lunar nuclear-power plans highlight emerging questions in space technology and international law.

CLAT Practice Passage

Original CLAT-Style Practice

India’s policy choices in October 2026 illustrate how constitutional institutions, economic regulation and public administration operate through different but interconnected mechanisms. The Reserve Bank of India’s decision to raise the repo rate by 25 basis points reflects the role of monetary policy in responding to inflationary risks. Unlike fiscal policy, which operates principally through government taxation and expenditure, monetary policy is conducted by the central bank through instruments affecting liquidity and interest rates. The RBI’s decision therefore illustrates institutional independence within a broader constitutional and statutory framework.

The judiciary provides a different example of institutional functioning. The Supreme Court’s closure of the long-running Tamil Nadu legislative privilege reference did not amount to a ruling finally settling every question concerning legislative privilege and freedom of speech. The underlying dispute had ceased to require adjudication because the legislative resolution that had triggered the proceedings had already been withdrawn. This demonstrates why the procedural status of a case matters when interpreting a judgment.

Another constitutional issue concerns the Election Commission. A challenge to the statutory framework governing appointments of Election Commissioners resulted in a split verdict. A subsequent application seeking recall of that verdict does not itself reverse the judgment. The development instead shows how judicial decisions may be subject to further procedural challenges within the legal system.

Federalism also remains relevant to criminal investigations. Punjab’s challenge to a CBI investigation illustrates the tension that can arise when a central investigative agency operates within a State. The constitutional distribution of powers generally places police and public order within the State sphere, but constitutional courts can, in exceptional cases, direct investigations by central agencies. The question is therefore not simply whether the CBI is a central institution, but under what legal authority and circumstances a central investigation can proceed.

Economic governance provides another example of institutional coordination. The creation of an Integrated Transport & Logistics Authority seeks to reduce fragmentation among different transport sectors, while the SME Growth Fund is intended to provide long-term capital to growing enterprises. Both measures reflect a broader policy preference for institutional mechanisms that coordinate resources rather than treating individual sectors in isolation.

International developments also demonstrate why legal and policy concepts must be distinguished from political claims. Russia’s attacks on Ukraine have continued to raise questions under international humanitarian law, particularly regarding civilian protection and the distinction between military objectives and civilian objects. At the same time, planned nuclear power systems for lunar operations demonstrate how technological advances can create questions under international space law. The Outer Space Treaty permits exploration of celestial bodies while rejecting national appropriation. Thus, current affairs often require students to identify not only what happened, but also which institution acted, what legal status the action has, and what questions remain unresolved.

Questions

1. Which statement best explains why the Supreme Court closed the Tamil Nadu legislative privilege reference?

A. The Court declared legislative privilege unconstitutional.
B. Parliament repealed Article 194.
C. The original dispute had become infructuous after the relevant Assembly resolution was withdrawn.
D. The Court ruled that freedom of speech always overrides legislative privilege.

2. Which institution is primarily responsible for India’s monetary policy decisions in the passage?

A. Ministry of Finance
B. Reserve Bank of India and its Monetary Policy Committee
C. Parliament’s Public Accounts Committee
D. Finance Commission

3. What is the key federalism issue in Punjab’s challenge to the CBI investigation?

A. Whether States can abolish the Supreme Court
B. Whether Parliament can appoint State judges
C. How a central investigative agency can exercise investigative powers within a State
D. Whether the RBI can investigate criminal offences

4. Which of the following is correctly matched?

A. Article 194 — Powers and privileges of State Legislatures
B. Article 324 — Monetary policy
C. Outer Space Treaty — National appropriation of the Moon
D. Article 124 — Election Commission’s statutory appointment law

5. What broader lesson about current affairs is emphasised by the passage?

A. Every government announcement immediately becomes law.
B. Only numerical facts matter in examination questions.
C. Students should distinguish institutional action, legal status and unresolved questions.
D. Constitutional disputes can only be decided by Parliament.

Answers and Explanations

1. C — The passage explains that the Assembly had withdrawn the resolution that triggered the proceedings, making the reference infructuous. The Court did not finally settle every underlying constitutional question.

2. B — The RBI’s Monetary Policy Committee takes monetary-policy decisions, including decisions on the policy repo rate.

3. C — The federalism issue concerns the circumstances and legal authority under which a central agency such as the CBI can investigate matters within a State.

4. A — Article 194 concerns the powers, privileges and immunities of State Legislatures and their members. Article 324 concerns the Election Commission, while the Outer Space Treaty prohibits national appropriation rather than permitting it.

5. C — The passage repeatedly stresses the importance of distinguishing what happened, which institution acted, the legal status of the action and what remains unresolved.

Closing

The day’s developments span monetary policy, constitutional law, federalism, infrastructure, defence and international affairs.

For CLAT preparation, the central skill is to connect each event with the institution, legal principle or policy framework behind it.