Seventeen years into the BRICS project, its founding institutions like the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) remain deeply tied to the western financial system they claim to challenge. Despite rhetoric regarding de-dollarisation and alternative financial architectures, the NDB largely issues bonds and loans in U.S. dollars and co-finances projects with the World Bank and IMF. Furthermore, the CRA has never been activated and requires an IMF program for large withdrawals. Consequently, BRICS functions more as a platform for a greater seat at the existing global table rather than a radical systemic alternative.
- The New Development Bank (NDB) relies heavily on U.S. dollars and co-financing with traditional western institutions rather than providing a true alternative.
- The Contingent Reserve Arrangement (CRA) has never been activated in its decade of existence and mandates prior IMF program entry for significant currency withdrawals.
- Declarations from BRICS summits increasingly avoid hard de-dollarisation stances due to member fears of western trade reprisals.
The Houthi rebel group in Yemen launched a wave of drone and ballistic missile attacks on Saudi Arabia, targeting oil facilities, utilities, and economic infrastructure, including a major refinery in Jazan and an oil depot in Abha. The strikes resulted in multiple injuries, sparked massive fires, and temporarily suspended operations at several critical energy sites. The escalation has added pressure to global oil supplies and prompted strong retaliatory vows from the Saudi-led coalition, further intensifying the regional conflict involving Yemen, the Houthis, and broader geopolitical tensions.
- Houthi rebels launched coordinated missile and drone attacks targeting major Saudi oil facilities, utilities, and economic targets.
- The attacks caused fires at key infrastructure sites like the Aramco oil depot in Abha Bulk and a major oil refinery in Jazan.
- The strikes threaten global oil supplies by disrupting routes near the Strait of Hormuz and the Bab el-Mandeb waterway.
India's steel sector is experiencing a transformative phase focused on sustainability, driven by the emergence of green steel, higher capacity, and robust policy support. While the sector is crucial for industrial growth and self-reliance, the transition to green steel presents challenges such as high costs, infrastructure constraints, and the need for green hydrogen. Experts emphasize that the transition is not merely an industrial shift but a climate imperative. Policy measures including incentives under the National Green Hydrogen Mission and international partnerships are vital to achieve India's Net Zero 2070 target.
- India's steel sector is transitioning towards sustainability through green steel and green hydrogen integration.
- Policy support, infrastructure, and technology are essential for achieving net-zero goals in the hard-to-abate steel sector.
- Challenges include high costs of green hydrogen and clean technologies, along with supply chain constraints.
BRICS nations are actively exploring alternative cross-border payment systems to reduce reliance on the U.S. dollar and mitigate transaction costs associated with Western-dominated networks like SWIFT. Driven by Russia's chairmanship and concerns over financial sanctions, member countries are discussing national currency settlements, digital currencies, and messaging frameworks. While the initiative aims to enhance financial autonomy and trade efficiency among emerging economies, analysts note significant technical, political, and logistical challenges in establishing a unified alternative system.
- BRICS nations are discussing alternative cross-border payment systems to reduce global reliance on the U.S. dollar.
- Current international transactions heavily rely on SWIFT and correspondent banking, leading to high fees and delays.
- Proposals include using central bank digital currencies (CBDCs) and bilateral local currency trade settlements.
Thousands of opposition supporters in Bangladesh launched a nationwide long march, mounting severe pressure on the government over acute shortages of cooking gas, electricity, and fertilizer. Marking the first major street mobilization against the administration that took power six months ago, protesters marched from Dhaka toward Chittagong. Opposition leaders criticized the government's handling of the crisis, emphasizing that the movement aims to secure basic utilities and livelihood stability for every household across the country.
- Opposition supporters in Bangladesh began a massive long march over severe utility and energy shortages.
- The protests target acute shortages of cooking gas, electricity, and fertilizer affecting households.
- This marks the first major street mobilization against the government since it assumed power six months ago.
The Parliamentary Standing Committee on Finance strongly criticized the current Income Tax regime for relying excessively on punitive action and granting tax officials significant scope for overreach. During a meeting on Tax Reforms, members raised concerns about compliance-related glitches in the implementation of the Income Tax Act, 2026, the growing tax burden on individual taxpayers relative to corporations, and the issuance of notices that require taxpayers to prove compliance. The panel sought detailed data from the Central Board of Direct Taxes (CBDT) on revenue collections, number of assessees, and pending litigation.
- The Parliamentary Standing Committee criticized the Income Tax regime for its punitive approach and overreach potential.
- Members highlighted that individual taxpayers are increasingly bearing a disproportionate tax burden compared to corporate collections.
- The panel raised concerns over frequent notices forcing taxpayers to prove compliance, which undermines taxpayer trust.
The Supreme Court disposed of a batch of appeals filed by SEBI against the National Stock Exchange (NSE) regarding co-location and dark fibre cases, following a settlement of nearly ₹1,500 crore between the regulator and the exchange. A bench of Justices J.B. Pardiwala and K. Vinod Chandran set aside dissenting directions issued by the Securities Appellate Tribunal (SAT). The settlement comes just ahead of the NSE's anticipated stock market debut, effectively resolving a decade-old regulatory dispute concerning allegations of preferential access given to certain brokers.
- The Supreme Court disposed of SEBI's appeals against NSE after a ₹1,500 crore settlement involving co-location and dark fibre cases.
- The settlement comprises ₹1,224 crore for the co-location case and ₹268 crore for the dark fibre case.
- The resolution clears a nearly decade-old regulatory dispute, allowing NSE to move forward with its much-anticipated stock market debut.
The National Accounts Statistics reported the manufacturing sector's Gross Value Added (GVA) at ₹386.6 lakh crore for 2023-24 at current prices, constituting 14.7% of GDP. However, an 'Alternative Estimate' using data from the Annual Survey of Industries (ASI) and Annual Survey of Unincorporated Sector Enterprises (ASUSE) shows a significantly lower figure of ₹274.4 lakh crore, creating a massive gap. This discrepancy stems from differing definitions, methodologies, and uncaptured potential GVA of residual workers. Economists emphasize that accurate estimation of GVA is critical for fiscal governance, policy formulation, and transparent economic planning.
- Official NAS estimates put manufacturing GVA at ₹386.6 lakh crore for 2023-24, while alternative ASI and ASUSE data show ₹274.4 lakh crore.
- The significant gap arises from varying definitions, data sources, methodologies, and uncaptured potential GVA of residual workers.
- Potential GVA of residual workers not captured by ASI/ASUSE is estimated to be ₹3.1 lakh crore.
The Parliamentary Standing Committee on Finance strongly criticized the present Income Tax regime for relying excessively on 'punitive action' and granting tax officials sweeping scope for overreach. During discussions on 'Direct Tax Reforms: Simplification, Rationalization and Ease of Compliance', lawmakers highlighted compliance-related glitches in the implementation of the Income Tax Act, 2026, a surge in intrusive notices to taxpayers to prove compliance, and declining taxpayer trust. The committee sought comprehensive additional data from the Central Board of Direct Taxes (CBDT) on revenue collections, assessees, and pending litigation.
- The Parliamentary Standing Committee on Finance criticized the Income Tax regime for heavy-handed enforcement and punitive actions.
- Lawmakers expressed deep concern over a surge of intrusive notices forcing taxpayers to prove compliance.
- The panel demanded data from the CBDT regarding tax revenue collections, number of assessees, and pending litigation volumes.
The Supreme Court disposed of a batch of appeals filed by the Securities and Exchange Board of India (SEBI) against the National Stock Exchange (NSE) regarding co-location and dark fibre cases, following a nearly ₹1,500 crore settlement between the market regulator and the exchange. A Bench of Justices J.B. Pardiwala and K. Vinod Chandran set aside Securities Appellate Tribunal (SAT) directions against SEBI. The resolution comes ahead of NSE's highly anticipated stock market debut, successfully resolving a decade-old regulatory dispute and reinforcing transparency in financial markets.
- The Supreme Court disposed of SEBI appeals against NSE regarding co-location and dark fibre cases following a settlement.
- Total settlement amount between SEBI and NSE stands at nearly ₹1,500 crore.
- The settlement includes ₹1,224 crore for the co-location case and ₹268 crore for the dark fibre case.
The National Statistical Office (NSO) reported manufacturing sector Gross Value Added (GVA) at ₹386.6 lakh crore for 2023-24 at current prices, representing 14.7% of GDP. However, an 'Alternative Estimate' using data from the Annual Survey of Industries (ASI) and Annual Survey of Unincorporated Sector Enterprises (ASUSE) showed a significantly lower figure of ₹274.4 lakh crore. This ₹112.2 lakh crore discrepancy underscores critical methodological differences, data collection variations, and uncaptured potential GVA from residual workers in the unorganized sector, prompting calls for independent verification and statistical reconciliation.
- NSO estimated manufacturing sector GVA at ₹386.6 lakh crore for 2023-24, accounting for 14.7% of GDP.
- Alternative estimates using ASI and ASUSE data put the figure much lower at ₹274.4 lakh crore.
- The substantial gap of ₹112.2 lakh crore arises from differences in data sources, methodologies, and definitions.
Discarded IT equipment, or e-waste, is a rich source of critical minerals, making "urban mining" a strategic imperative. However, current e-waste decisions often prioritize immediate financial returns, such as resale value, over long-term strategic benefits like resource security, environmental sustainability, and industrial capability. Advanced recycling, though initially more expensive due to sophisticated technology and compliance, offers significant national advantages by reducing import dependence and managing hazardous components. The article advocates for value-based procurement that considers both immediate financial and strategic balance sheets, drawing parallels with the long-term benefits realized from early investments in solar power.
- E-waste is a valuable source of critical minerals, offering potential for "urban mining" and reducing import dependence.
- Current e-waste management often prioritizes immediate financial gains over crucial long-term strategic benefits.
- Strategic benefits include resource security, environmental sustainability, and strengthening domestic industrial capability.
Iranian leaders have admitted the economic hardship caused by U.S. sanctions, with President Masoud Pezeshkian reporting a 35% slump in foreign trade and Supreme Leader Ayatollah Mojtaba Khamenei urging the government to address inflation and unemployment. Despite the economic toll, Tehran vowed to stand firm against U.S. pressure, pursue diplomacy, and maintain control over the strategic Strait of Hormuz. Iran emphasized that diplomacy and defense are complementary strategies for protecting national interests, indicating a balanced approach to its foreign policy and economic challenges.
- Iran's leadership has publicly acknowledged the severe economic impact of U.S. sanctions, including significant drops in foreign trade.
- Despite the economic challenges, Iran remains resolute in its stance against U.S. pressure and is committed to defending its interests.
- The Strait of Hormuz is highlighted as a strategic asset, giving Iran leverage in global energy markets.
Former U.S. President Donald Trump announced an oil deal with Venezuela, claiming U.S. majority control over 65 billion barrels of proven petroleum reserves. He stated the deal, facilitated by Secretary of State Marco Rubio and Defence Secretary Pete Hegseth with Venezuelan Vice-President Delcy Rodriguez, would bring nearly $100 billion in private investment to Venezuela. This agreement, which Rodriguez confirmed as 'historic,' comes amidst intense U.S. pressure on Venezuela and its leader Nicolas Maduro. Experts like Jorge Pinon questioned the unconventional nature of transferring oil assets to another country.
- Donald Trump announced a deal granting the U.S. majority control over a significant portion of Venezuela's oil reserves.
- The deal, touted as the 'biggest oil deal in world history,' is expected to attract substantial private investment into Venezuela.
- The agreement was negotiated amidst ongoing U.S. pressure and sanctions against Venezuela and its leadership.
India's food regulator has proposed introducing front-of-pack warning labels on packaged food and drinks. This initiative aims to highlight items high in sugar, fat, or salt, reversing an earlier stance. The move comes in response to growing public demand for stricter labeling and represents a significant challenge for food companies. The labels are intended to help consumers make healthier choices by providing clear, immediate information about the nutritional content of products.
- India's food regulator proposes front-of-pack warning labels for packaged food and drinks.
- The labels will highlight high sugar, fat, or salt content to inform consumers.
- This move marks a reversal of the regulator's previous position on such labeling.
The Indian government will implement a fortnightly sugar allocation system starting September, replacing the current monthly quota. This change aims to improve monitoring of the demand-supply situation, prevent artificial shortages, and ensure prompt dispatch of sold sugar. The decision was prompted by findings that many mills held more stock than declared and sold less than allocated. Under the new system, mills must sell at least 40% of their allocation in the first week and the remainder in the second, with crushing set to commence on October 15.
- The Centre will replace the monthly sugar quota system with a fortnightly allocation system starting September.
- The new system aims to closely monitor demand-supply, prevent artificial shortages, and ensure timely sugar dispatch.
- The decision was influenced by mills holding undeclared stocks and selling less than allocated quotas.
India and Canada have reaffirmed their commitment to conclude the Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026. This decision emerged from the inaugural India-Canada Finance Ministers' Economic and Financial Dialogue in Toronto. Both nations also expressed readiness to initiate talks for a Bilateral Investment Treaty 'at the earliest.' The dialogue aimed to strengthen bilateral economic and financial cooperation, boost bilateral trade to ₹4.65 lakh crore by 2030, and facilitate greater engagement between financial institutions and institutional investors.
- India and Canada are committed to finalizing the Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026.
- Both countries are prepared to begin negotiations for a Bilateral Investment Treaty soon.
- The commitment follows the inaugural India-Canada Finance Ministers' Economic and Financial Dialogue.
India's industrial growth rate slowed to 6.7% in July 2026, down from 8.8% in June. Despite the slowdown, this was the second-best growth recorded by the Index of Industrial Production (IIP) since December last year, primarily buoyed by the manufacturing and electricity and gas supply sectors. The manufacturing sector grew by 7.3% in July, a decrease from 9.5% in June but still faster than the previous year. Economists note a divergence in consumption trends, with rural consumption levels showing weakness.
- India's industrial growth rate decreased to 6.7% in July 2026 from 8.8% in June.
- The July growth was the second-best performance of the Index of Industrial Production (IIP) since December last year.
- Manufacturing, electricity, and gas supply sectors were key contributors to the growth.
India's research and development ecosystem suffers from a lack of transparency regarding funding allocation and utilization. A NITI Aayog report, "Ease of Doing R&D in India," revealed that over 80% of Anusandhan National Research Foundation (ANRF) funding is concentrated in IITs, despite its broader mandate. Multiple central agencies often fund similar research, leading to overlap and inefficient use of public money. The core issue is the absence of a system to track who is funded, by whom, for what, and whether funding has been given elsewhere, compounded by scattered data in inconsistent formats. NITI Aayog proposes a Unified Project Management System (UPMS) to streamline R&D projects, but it doesn't fully address the core data consistency problem.
- India's R&D system lacks a transparent mechanism to track funding details like recipients, sources, and purpose, leading to inefficiencies.
- A significant portion (over 80%) of ANRF funding is concentrated in IITs, contrary to its mandate for a wider research base.
- Multiple central agencies often fund similar research areas, causing overlap and inefficient use of public money.
The Indian economy is showing signs of slack demand, higher costs, and moderating growth, with the Index of Core Industries (ICI) growth slowing to 5.4% in July from 6% in June. While some sectors like coal and refinery products showed growth, it was largely due to a low statistical base effect from previous contractions. Persistent drags include the crude oil and natural gas sectors, which have contracted for 14 consecutive months, leading to a 13.3% rise in crude oil imports and a 41% jump in the import bill. Despite bright spots in electricity and cement, the overall outlook suggests challenging times ahead, exacerbated by potential U.S. tariffs on Russian oil imports.
- India's core industrial sectors experienced a slowdown in July, indicating easing demand conditions.
- Much of the reported growth in some sectors was attributed to a low statistical base effect from previous year's contractions.
- The crude oil and natural gas sectors have been persistent drags, contracting for at least 14 consecutive months.
India's unemployment problem is a complex issue extending beyond just education, rooted in a significant mismatch between labor demand and supply. Despite rising educational attainment, job creation has not kept pace, particularly in the manufacturing sector, which has seen a decline in its share of GDP. The economy's shift towards services, while creating some jobs, has not absorbed the vast labor force, leading to underemployment and disguised unemployment. The pandemic further exacerbated job losses, especially among daily wage earners. Addressing this requires structural reforms to boost manufacturing, improve skill alignment with industry needs, and ensure robust job growth across sectors.
- India's unemployment is primarily due to a demand-supply mismatch in the labor market, not solely a lack of education.
- The economy's structural shift, with a declining manufacturing share and growing services, has not generated sufficient jobs.
- Despite rising educational levels, job creation has lagged, leading to underemployment and disguised unemployment.
India's E20 fuel policy, aiming for 20% ethanol blending by 2025, faces significant challenges in consumer adoption. The policy, intended to reduce crude oil imports and pollution, could lead to higher fuel prices and lower fuel efficiency for consumers. Furthermore, a substantial portion of the vehicle fleet is not yet E20-compatible, requiring costly modifications or new purchases. For successful implementation, the government must ensure competitive pricing, maintain fuel efficiency, and prioritize consumer choice, rather than mandating E20, to avoid burdening citizens and hindering the policy's environmental and economic goals.
- India's E20 fuel policy aims for 20% ethanol blending by 2025 to reduce crude oil imports and pollution.
- E20 fuel may be more expensive and less fuel-efficient, potentially increasing costs for consumers.
- A significant portion of existing vehicles are not E20-compatible, requiring costly upgrades or new vehicle purchases.
The U.S. has accused India, among 40 other countries, of being a top 'enabler' in 'The Great Transhipment Scam,' where goods from China are re-routed through third countries to evade U.S. tariffs. This practice, detailed in a White House report, allegedly resulted in $28 billion in lost tariff revenue for the U.S. in 2025. The U.S. claims these countries marginally modify Chinese goods before exporting them at lower tariffs. This accusation follows previous U.S. criticisms of India's trade policies and could lead to further penal actions, impacting India's manufacturing and growth story, which relies on Chinese inputs.
- The U.S. has accused India of facilitating China's evasion of U.S. tariffs through 'The Great Transhipment Scam'.
- India is named among over 40 countries identified as 'enablers' in re-routing Chinese goods.
- The U.S. Office of Trade and Economic Analysis estimates $28 billion in lost tariff revenue due to transshipment in 2025.
The Indo-Pacific Partnership for Maritime Domain Awareness (IPMDA), launched under Quad in 2022, is essential for ensuring unimpeded trade and security in the Indo-Pacific. The region faces a persistent maritime surveillance deficit, with vessels disabling AIS transponders to evade sanctions or conceal illegal activities. IPMDA, a technology-based mechanism, integrates data from various sources to create a continuous maritime picture, addressing threats like smuggling, illegal fishing, and grey-zone operations. Its success relies on active participation from Quad, ASEAN, Pacific Island nations, and the EU to uphold a rules-based maritime order.
- The Indo-Pacific Partnership for Maritime Domain Awareness (IPMDA) is crucial for unimpeded trade and security in the Indo-Pacific.
- The region suffers from a persistent maritime surveillance deficit, exacerbated by vessels disabling AIS transponders.
- IPMDA is a technology-driven solution integrating various data sources to create a layered, near-continuous maritime picture.