As 2026 begins, China faces a paradox of domestic economic challenges and assertive international projection. Despite a slowdown in growth (around 5%) and deflationary pressures, Beijing continues to project power through the 'Global South' and 'China Shock 2.0' in high-tech manufacturing. The article highlights the recalibration of U.S.-China relations under the 'America First' approach and the persistent friction in India-China relations. While some tactical stabilization occurred in 2025, core issues like the border dispute and China's support for Pakistan remain unresolved. India must navigate this by strengthening domestic capabilities and maintaining external balances while preparing for a long-term strategic competition.
China's economic growth has slowed to approximately 5%, with persistent deflationary pressures and a struggling property sector weighing on confidence.
The 'China Shock 2.0' involves aggressive exports of high-tech goods like electric vehicles and solar panels to compensate for weak domestic demand, causing global trade tensions.
India-China relations saw tactical stabilization in 2025, but structural issues and border tensions, including the creation of 'buffer zones', continue to hinder full normalization.
Exam Points
China's trade surplus crossed $1 trillion in the first 11 months of 2025.
The trade deficit between India and China is expected to exceed $110 billion in 2025.
Operation Sindoor refers to the China-Pakistan battlefield collusion mentioned as a negative signal to India.
Following widespread strikes by gig workers, the Indian Labour Ministry published draft Rules to operationalize refreshed labor codes. However, the editorial argues these rules are insufficient. While the Code on Wages excludes gig work from a standard 'employment' relationship, the new framework focuses primarily on social security contributions rather than wages or working conditions. The draft Rules require workers to register on a portal and meet specific engagement thresholds (90 days with one aggregator or 120 days across multiple). Critics argue these thresholds are restrictive and fail to account for illness, maternity, or market demand fluctuations, leaving workers structurally insecure.
The draft Rules require gig workers to register on a government portal and aggregators to upload worker details quarterly for social security purposes.
To qualify for benefits, a worker must have been engaged for at least 90 days with one aggregator or 120 cumulative days across multiple aggregators in a financial year.
The current framework treats gig work as distinct from traditional employment, exempting platforms from standard wage and working condition obligations.
Exam Points
The draft Rules are part of the operationalization of the Code on Social Security and the Code on Wages.
The Shram Suvidha Portal is the primary platform mentioned for labor law compliance and employer reporting.
Eligibility for social security requires 90 days of engagement with one aggregator or 120 cumulative days across aggregators.
This article addresses the systemic devaluation of women's unpaid care work, which is essential for the functioning of families and the economy. A 2023 UN report indicates that globally, women spend 2.8 more hours than men on unpaid care. In India, the lack of a legal framework to recognize this labor persists, although judicial interventions like the Madras High Court's ruling in 2023 have begun to acknowledge a wife's contribution to family assets. The authors advocate for structural changes, including social security credits for unpaid care and a reconfiguration of gendered social relations to ensure women's full participation in the formal economy.
Unpaid care work, including childcare and elder care, remains largely unacknowledged in national budgets and policy frameworks despite its critical economic role.
The 'breadwinner' model of employment prioritizes formal labor, leading to the diversion of public resources away from social infrastructure like childcare.
The Madras High Court recently ruled that a wife's domestic work entitles her to an equal share in property acquired during the marriage, recognizing her indirect contribution.
Exam Points
A 2023 UN report shows women spend 2.8 times more hours than men on unpaid care work globally.
Article 338 of the Bolivian Constitution recognizes domestic work as an economic activity that creates social welfare and wealth.
The Madras High Court case 'Kannaian Naidu and Others vs Kamsala Ammal and Others (2023)' established a precedent for recognizing domestic labor in property rights.
Data from the OECD reveal that India sustains annual economic losses equivalent to 0.4% of its GDP due to natural disasters. Between 1990 and 2024, India experienced a high frequency of hydrological disasters (floods and storms) and seismic events. The report highlights that Emerging Asia faces escalating threats, with an average of 100 disasters annually impacting 80 million people. Disaster risk finance has moved to the forefront of policy as the scale of economic loss escalates. India ranks second only to the Philippines in the World Risk Index among analyzed Asian economies, highlighting the need for enhanced adaptive capacity.
India loses approximately 0.4% of its GDP annually to natural disasters, primarily driven by floods, storms, and tropical cyclones.
Emerging Asia has averaged 100 disasters per year over the last decade, affecting nearly 80 million people and causing significant economic damage.
The World Risk Index calculates risk based on a geometric mean of exposure and vulnerability (susceptibility, coping capacity, and adaptive capacity).
Exam Points
India's annual loss due to disasters is 0.4% of GDP based on data from 1990-2024.
India ranks second in the World Risk Index 2025 among the Asian economies featured in the OECD report.
The data is sourced from the OECD development centre's 'Economic Outlook for Southeast Asia, China and India 2025'.
Recent U.S. actions against Venezuela are unlikely to significantly impact India's energy security. Analysis shows that Venezuelan crude accounted for only 0.3% of India's total oil imports in the current financial year (up to November 2025). Since 2019, India has been steadily reducing its commercial engagement with Venezuela in response to U.S. sanctions. While Venezuela is an OPEC member with significant reserves, it currently produces a relatively small amount of crude compared to other global producers. Experts suggest that existing sanctions, geographical distance, and the heavy nature of Venezuelan crude already limit the trade relationship.
Venezuelan oil imports constituted only 0.3% ($255.3 million) of India's total oil imports in the 2025-26 financial year up to November.
India's oil imports from Venezuela peaked at $13 billion in 2013 but have drastically declined due to U.S. sanctions and commercial risks.
Venezuela accounts for about 3.5% of OPEC's total oil exports and roughly 1% of global oil supplies, limiting its impact on global prices.
Exam Points
Venezuelan crude accounted for 0.3% of India's total oil imports in the current FY (up to Nov 2025).
In 2013, India imported $13 billion worth of Venezuelan oil, showcasing a significant historical decline.
Venezuela is a member of the Organization of the Petroleum Exporting Countries (OPEC).
The Jammu & Kashmir administration has issued new directives to courier and parcel services to prevent the transport of narcotics. Under Section 163 of the Bharatiya Nagarik Suraksha Sanhita-2023 and the NDPS Act, 1985, all courier employees must undergo police verification. Companies are required to maintain updated registers of verified staff and provide training to identify suspicious consignments. No operator is permitted to transport narcotic drugs or psychotropic substances without a valid permit under the NDPS Rules 1985 and the Drugs and Cosmetic Act 1940. Non-compliance may lead to criminal sanctions, fines, and license cancellation.
Courier and logistics operators in Jammu must verify all employees through local police to prevent the misuse of services for drug smuggling.
The order was issued under Section 163 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, replacing older procedural laws.
Operators are mandated to report suspicious consignments to the nearest police authority and maintain a register of all verified employees.
Exam Points
The directives were issued under Section 163 of the Bharatiya Nagarik Suraksha Sanhita-2023.
Relevant laws cited include the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985, and the Drugs and Cosmetic Act, 1940.
The order was issued by the District Magistrate of Jammu.
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