This article, drawing on data from the UDAYA-Understanding the Lives of Adolescents and Young Adults study, examines educational aspirations and outcomes, revealing a significant gender gap. While girls often exhibit higher educational aspirations than boys, this does not consistently translate into higher attainment, particularly in rural areas and among lower-income groups. The study indicates that girls from disadvantaged backgrounds face more barriers to completing higher education. The government's efforts to promote education need to be strengthened with targeted interventions, especially for girls, to bridge the gap between aspirations and actual attainment, ensuring equitable access and support for all students to achieve their full potential.
- Girls generally have higher educational aspirations than boys, but this does not always lead to higher educational attainment.
- A significant gender gap in educational outcomes persists, particularly in rural areas and among disadvantaged communities.
- Structural barriers and socio-economic factors often prevent girls from translating their high aspirations into completed education.
Vietnamese President Tô Lâm's recent visit to India marks a significant moment in deepening India-Vietnam ties, elevating their relationship to an Enhanced Comprehensive Strategic Partnership. This shift, encompassing defence, technology, finance, and energy agreements, is driven by heightened geopolitical flux in the Indo-Pacific. Vietnam navigates China's assertiveness, while India consolidates its Act East policy. Defence cooperation, including military transfers and training, forms a core pillar. Economic ties are expanding with ambitious trade targets and a focus on supply chain resilience and critical minerals. The partnership contributes to minilateral balancing in the Indo-Pacific and underscores ASEAN's centrality to India's foreign policy, reflecting a mature, multifaceted relationship.
- Vietnamese President Tô Lâm's visit elevated India-Vietnam ties to an Enhanced Comprehensive Strategic Partnership.
- The partnership is crucial amidst Indo-Pacific geopolitical flux, driven by converging threat perceptions like maritime coercion and supply chain vulnerabilities.
- Defence cooperation, including military transfers and training assistance, forms a backbone of the bilateral relationship.
An editorial critically examines Prime Minister Narendra Modi's seven-point call to action for citizens, suggesting it reveals the severe economic implications of the West Asia crisis. The author questions the timing and content of Modi's message, noting its belated nature after election campaigns and its contradiction of earlier government reassurances. Suggestions like working from home and reducing fuel usage are deemed problematic. The article argues that the government's pre-election decision to maintain stable fuel prices, while welcome, failed to encourage consumption curtailment. Coordinated messaging with industry bodies further indicates a dire economic situation, with some suggestions potentially having negative impacts.
- PM Modi's seven-point call to action suggests a serious economic impact from the West Asia crisis.
- The timing of the Prime Minister's message is criticized for being belated and inconsistent with prior government reassurances.
- Suggestions such as reducing fuel usage and avoiding foreign travel are viewed as potentially ineffective or problematic.
The government has assured that India possesses sufficient stocks of petroleum products and essential commodities, mitigating any need for panic buying despite the ongoing West Asia conflict. Defence Minister Rajnath Singh chaired the Informal Group of Ministers (IGOM) meeting, where it was reported that India holds 60 days of crude oil, 60 days of natural gas, and 45 days of LPG rolling stock. India's foreign exchange reserves remain robust at $703 billion. The Centre noted that domestic petroleum prices have remained stable due to Indian oil marketing companies absorbing significant losses, unlike many other nations. Conservation efforts are aimed at boosting long-term preparedness.
- India maintains robust reserves of crude oil, natural gas, and LPG, ensuring uninterrupted supply despite global disruptions.
- The government has reassured the public that there is no reason for anxiety or panic buying of essential commodities.
- Indian oil marketing companies have absorbed substantial losses to keep domestic fuel prices stable amidst international volatility.
External Affairs Minister S. Jaishankar emphasized the primordial importance of maritime security in the Indian Ocean Region (IOR) for peace, energy security, and livelihoods. He highlighted the region's vulnerability to challenges like piracy, terrorism, and weapons proliferation, stressing the need for a rules-based order and enhanced cooperation among IORA member states. The minister called for collective efforts to address these threats and ensure stability, recognizing the IOR as central to India's strategic interests and global trade, and crucial for regional economic development.
- Maritime security in the Indian Ocean Region (IOR) is crucial for global peace, energy security, and economic livelihoods.
- The IOR faces significant threats including piracy, maritime terrorism, and the proliferation of weapons.
- A rules-based international order and enhanced cooperation among littoral states are essential to address these challenges.
Despite the 2016 demonetisation, fake Indian currency notes (FICN) continue to be a significant problem, with their prevalence increasing in certain denominations like ₹500 and ₹2000. Data from the RBI and NCRB indicate that while overall detection initially decreased, it has risen again, particularly in the banking system. The article highlights the ongoing efforts of law enforcement agencies and the challenges in combating the circulation of counterfeit notes, with Maharashtra consistently reporting the highest seizures, underscoring the persistent threat to the economy.
- Fake Indian Currency Notes (FICN) continue to circulate despite the 2016 demonetisation, posing an ongoing challenge.
- Detection of counterfeit ₹500 and ₹2000 notes has increased significantly in recent years.
- The Reserve Bank of India (RBI) and the National Crime Records Bureau (NCRB) collect and report data on FICN seizures.
The article highlights the persistently high opportunity cost of accessing medical care in India, exacerbated by the new Labour Codes. It discusses the Union Labour Ministry's initiative for free annual health check-ups and the role of ESIC hospitals, but points out that many workers, especially women, still face significant barriers. Challenges include the need for signed medical check-ups for women, overcrowding in ESIC camps, and the lack of focus on non-communicable diseases and proactive vaccination under the new codes, indicating a need for more comprehensive and accessible healthcare solutions.
- Accessing medical care in India continues to have a high opportunity cost, impacting workers' well-being and productivity.
- The new Labour Codes, specifically the Occupational Safety, Health and Working Conditions (OSH) Code 2020, aim to improve worker health but have limitations.
- The ESIC fund and facilities are crucial for providing medical benefits, but issues like overcrowding and specific requirements for women workers persist.
A report by NREGA Sangharsh Morcha and LibTech India reveals a sharp contraction in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in 2025-26. Despite a marginal rise in registered households, employment generation, total workdays, and the number of families completing 100 days of work significantly declined. This resulted in an average income loss of ₹1,221 per household. The report highlights the uncertainty surrounding the transition to the new Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, and criticizes the lack of public consultation for such a major restructuring of employment guarantee programs, raising concerns about rural livelihood security.
- The MGNREGS experienced a significant contraction in 2025-26, with declines in employment generation and total workdays.
- This contraction led to an average income loss of ₹1,221 for each MGNREGS household during the financial year.
- The number of households completing 100 days of work under the scheme declined by 40.5%.
India's data system is fragmented and lacks interoperability, leading to inefficiencies, fiscal leakages, and misinformed decisions. Parliamentary questions often seek basic facts that should already be publicly available, highlighting the issue. NITI Aayog's National Data and Analytics Platform (NDAP) vision document noted incoherence, with ministries failing to use shared standards. Duplication in health records and other databases leads to inflated spending and conflicting estimates. Poor data governance costs India significant economic potential. The solution lies in implementing the National Data Governance Framework Policy (NDGFP) and empowering the India Data Management Office (IDMO) to set binding standards and audit compliance across ministries.
- India's data ecosystem is fragmented and lacks interoperability, leading to inefficiencies, fiscal leakages, and hindering effective policymaking.
- Duplication of records in various sectors, such as health and welfare schemes, results in inflated spending and unreliable data.
- Poor data governance incurs significant economic costs and impacts India's global innovation rankings.
The EU's Ambassador to India, Hervé Delphin, lauded the India-European Union Free Trade Agreement (FTA) as the "mother of all deals," creating a massive joint market. However, he cautioned that burdensome compliance norms and administrative procedures could derail its benefits. Delphin emphasized the need for both sides to ensure smooth implementation with a pro-FTA mindset, preventing customs procedures or conformity requirements from acting as trade barriers. He also noted the FTA's shortcoming in not covering investment liberalization in non-services sectors, which could have provided greater assurance and predictability for investors. The deal is expected to be implemented by early 2027.
- The India-EU Free Trade Agreement (FTA) is hailed as the "mother of all deals," creating a significant joint market.
- EU Ambassador Hervé Delphin warned that burdensome compliance norms and administrative procedures could undermine the FTA's benefits.
- Both India and the EU must ensure smooth implementation with a pro-FTA mindset, avoiding trade barriers disguised as conformity requirements.
The article argues that openness, collaboration, and the ability to attract talent are fundamental to the West's progress, not isolation. It critiques the idea of a "Western civilisation" as a static concept, emphasizing that its strength lies in its dynamic evolution through continuous interaction and adaptation. The author highlights the importance of open systems for innovation, economic growth, and addressing global challenges, contrasting this with the risks of protectionism and isolation. The piece suggests that maintaining leadership requires embracing diversity, fostering collaboration, and upholding institutional openness rather than retreating into a defensive posture.
- Openness, collaboration, and attracting global talent are crucial for the West's continued progress and innovation.
- The concept of "Western civilisation" is dynamic, evolving through interaction and adaptation, not isolation.
- Protectionism and isolation pose significant risks to economic growth and the ability to address complex global challenges.
Tensions between the US and Iran have escalated following a drone attack on a US base in Jordan, killing three American soldiers. The US retaliated with strikes on Iran-backed militias in Iraq and Syria, but avoided direct confrontation with Iran. This cycle of violence, fueled by the Gaza conflict, risks a wider regional war. Iran's actions, often through proxies, aim to challenge US influence and pressure for sanctions relief, while the US seeks to deter further attacks without full-scale war. The situation remains volatile, with both sides needing de-escalation to prevent catastrophic outcomes for the region and global economy.
- Tensions between the US and Iran have intensified after a drone attack killed three US soldiers in Jordan.
- The US responded with retaliatory strikes on Iran-backed militias in Iraq and Syria, but avoided direct attacks on Iran.
- The ongoing Gaza conflict is a major catalyst for the escalating regional violence involving Iran and its proxies.
Karnataka has operationalized India's first specialized grievance redressal mechanism for platform-based gig workers through the Integrated Public Grievance Redressal System (IPGRS). This system allows gig workers to file complaints regarding issues like suspension, termination, unfair penalties, and discrimination, aiming to provide structure and legal recourse. The Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2023, underpins this initiative, providing social security and welfare benefits funded by a 1% cess on platform transactions. Complaints filed via IPGRS are automatically routed to the platform's Internal Dispute Resolution Committee (IDRC) for resolution within 15 working days.
- Karnataka has launched India's first specialized grievance redressal mechanism for platform-based gig workers via the Integrated Public Grievance Redressal System (IPGRS).
- The IPGRS enables gig workers to file complaints concerning issues such as suspension, termination, unfair penalties, and discrimination.
- This system aims to provide structure, transparency, and legal recourse for gig workers who often lack formal employment benefits.
India and Vietnam have elevated their bilateral relationship to an "enhanced comprehensive strategic partnership," with PM Narendra Modi calling Vietnam a major pillar of India's Act East Policy and Vision MAHAsagar. During Vietnamese President To Lam's visit, 13 documents were signed, including MoUs on critical minerals and digital payments. Discussions focused on expanding cooperation in maritime security, defense industry collaboration, and joint research. Both sides acknowledged progress in implementing defense Lines of Credit from India, enhancing Vietnam's defense capabilities. The leaders reaffirmed their shared outlook on the Indo-Pacific, emphasizing rule of law, peace, and stability.
- India and Vietnam have elevated their relationship to an "enhanced comprehensive strategic partnership."
- Prime Minister Modi identified Vietnam as a key pillar of India's Act East Policy and Vision MAHAsagar.
- During Vietnamese President To Lam's visit, 13 documents were signed, including MoUs on critical minerals and digital payments.
This article discusses persistent inequality in India, particularly concerning consumption expenditure and income, despite policy changes like the Bharat-Guaranteed for Rozgar and Ajeevika Mission (Gramin) Bill, 2023. National Sample Survey Organization (NSSO) data indicates higher urban inequality and a persistent rural-urban gap. While overall poverty has declined, growth benefits are not equitably distributed, widening disparities across socio-economic groups, castes, and classes. The analysis suggests current mechanisms are inadequate, potentially leading to social unrest if not properly addressed, emphasizing the need for targeted interventions beyond broad poverty alleviation.
- Inequality in India persists despite policy initiatives like the Bharat-Guaranteed for Rozgar and Ajeevika Mission (Gramin) Bill, 2023.
- NSSO data reveals higher consumption expenditure inequality in urban areas compared to rural, with a significant rural-urban gap.
- Despite overall poverty reduction, economic growth benefits are not equitably distributed across socio-economic groups, castes, and classes.
The Centre has introduced a new Standard Operating Procedure (SOP) for Foreign Direct Investment (FDI) proposals, aiming to accelerate inflows into priority sectors by capping processing time at 12 weeks. The fully digital process mandates the Department for Promotion of Industry & Internal Trade (DPIIT) to disseminate proposals to relevant ministries, RBI, MHA, and MEA within two days. These bodies must submit comments within eight weeks, with internal scrutiny completed within 12 weeks. Delays in responses will be treated as no objection. The SOP also clarifies that no prior approval is needed for increasing foreign equity up to Rs 5000 crore if the percentage of foreign/NRI equity remains unchanged.
- A new SOP for FDI proposals aims to cap processing time at 12 weeks and implement a fully digital process.
- DPIIT will disseminate proposals to relevant ministries, RBI, MHA, and MEA within two days.
- Ministries and other bodies must provide comments within eight weeks, with a 12-week deadline for internal scrutiny.
Rohit Lamba and Raghuram Rajan argue that India risks repeating past mistakes in its AI strategy, becoming a 'tenant of intelligence' rather than a producer. While the new Google AI hub in Visakhapatnam signifies infrastructure development, the core AI models and silicon are foreign-designed, reflecting India's historical focus on outsourcing rather than deep-tech R&D. They highlight India's low R&D intensity (below 1% of GDP) and lack of world-class research universities, contrasting with countries like Korea and Taiwan. The authors warn that relying on diffusion without frontier innovation could compromise India's strategic autonomy and economic future, urging a shift towards building indigenous AI capabilities.
- India's current AI strategy, exemplified by the Google AI hub, risks making it a tenant rather than a producer of intelligence.
- The authors criticize India's historical focus on outsourcing and infrastructure development over deep-tech R&D and indigenous innovation.
- India's R&D intensity remains below 1% of GDP, and it lacks world-class research universities, unlike leading tech nations.
The Indian rupee has been consistently weakening, falling by 5.64% this year and 5% last year, primarily due to the West Asia conflict and capital account pressures. Elevated global crude oil prices, with Brent crude around $113 per barrel, are widening the current account deficit, potentially reaching 2% of GDP in 2026-27. Capital outflows are significant, with foreign portfolio investors withdrawing $21.2 billion this year and $18.9 billion last year. The RBI's efforts to ease stress are challenged by its swelling short dollar book. The delay in adjusting retail fuel prices, coupled with rising commercial LPG costs, threatens to push up retail inflation, worsening growth-inflation dynamics and necessitating delicate macroeconomic management.
- The Indian rupee has significantly weakened, falling over 5% this year and last year.
- The West Asia conflict and high global crude oil prices are key drivers, pushing Brent crude to around $113 per barrel.
- The current account deficit is projected to widen to about 2% of GDP in 2026-27.
The Union Cabinet has approved a five-year mission with an outlay of Rs 5,659 crore aimed at significantly increasing cotton yield in India. This mission will focus on research and development of new high-yielding varieties, adoption of modern farming practices, and providing support to cotton farmers. The initiative seeks to enhance the income of farmers, improve the quality of Indian cotton, and strengthen the textile industry's raw material base. It is a strategic step to make India self-reliant in cotton production and boost its agricultural exports.
- The Union Cabinet approved a five-year mission to boost cotton yield in India.
- The mission has an outlay of Rs 5,659 crore.
- It will focus on R&D for high-yielding varieties and modern farming practices.
The Union Cabinet has given its nod for the establishment of two new semiconductor manufacturing plants with a total investment of Rs 3,936 crore. This decision aligns with India's broader strategy to boost its domestic semiconductor ecosystem and reduce reliance on imports. The initiative is expected to attract further investments in the high-tech manufacturing sector, create skilled jobs, and enhance India's position in the global electronics supply chain. This move is crucial for national security and economic growth, particularly in advanced technology sectors.
- The Union Cabinet approved two new semiconductor manufacturing plants.
- The total investment for these plants is Rs 3,936 crore.
- This initiative aims to strengthen India's domestic semiconductor ecosystem.
The Union Cabinet approved the Emergency Credit Line Guarantee Scheme 5.0 (ECLGS 5.0) to provide credit support of Rs 2.55 lakh crore to industries, particularly MSMEs and airlines, facing distress due to the West Asia conflict. This scheme, modeled on previous Covid-era lifelines, includes Rs 5,000 crore specifically for airlines. With an estimated outlay of Rs 18,000 crore, it aims to ensure additional credit flow, offering 100% guarantee coverage for MSMEs and 90% for non-MSMEs by the National Credit Guarantee Trustee Company Limited (NCGTC). The initiative seeks to maintain operations, protect jobs, and sustain supply chains amidst global uncertainties.
- The Union Cabinet approved ECLGS 5.0 to provide Rs 2.55 lakh crore in credit support, including Rs 5,000 crore for airlines.
- The scheme targets MSMEs and other industries affected by the West Asia conflict, mirroring Covid-era relief measures.
- ECLGS 5.0 offers 100% credit guarantee coverage for MSMEs and 90% for non-MSMEs through NCGTC.
The "Das Adam Smith Problem" refers to the perceived contradiction between Adam Smith's "The Theory of Moral Sentiments" (emphasizing sympathy) and "The Wealth of Nations" (focusing on self-interest). Initially formulated by 19th-century German economists, this problem is now largely considered a misunderstanding by contemporary scholars. They argue that Smith's philosophy forms a coherent whole, uniting ethics and economics through concepts like empathy and the "invisible hand" as a metaphor for societal benefit from individual motivations. The article explains that Smith extended his moral philosophy into economics, viewing markets as extensions of morality, and his two works are compatible, engaging with different points on a spectrum of self-interest and empathy.
- The "Das Adam Smith Problem" highlights the perceived conflict between Adam Smith's works on sympathy and self-interest.
- Modern scholars largely view this "problem" as a misunderstanding, arguing for a coherent philosophical system in Smith's writings.
- Smith's concept of the "invisible hand" is seen as a metaphor for how individual motivations can benefit society when properly directed.
Medical inflation in India is rising exponentially, leading to significant out-of-pocket expenditure (OOPE) for most households, many of whom lack health insurance. The 2025-26 Economic Survey indicated health inflation at 3%, but other reports show 12-13%. Factors contributing to this include costly technological advancements, increased demand due to non-communicable diseases, pharmaceutical inflation, and supply chain disruptions. The article highlights the low public health expenditure (below 2% of GDP) and challenges in regulating private hospital pricing. Suggested solutions include expanding the National List of Essential Medicines and including healthcare services under the Essential Commodities Act, 1955.
- Medical inflation in India is rising significantly, leading to high out-of-pocket expenditure for most households.
- Many Indians lack adequate health insurance, making them vulnerable to medical debt.
- Key drivers of inflation include advanced technology, increased demand, pharmaceutical costs, and supply chain issues.
The article discusses the European Union's Carbon Border Adjustment Mechanism (CBAM), effective January 1, 2026, which imposes a carbon price on imports. It argues that CBAM shifts decarbonisation burden to developing countries while retaining revenue in Europe. India should implement an India Border Adjustment Mechanism (IBAM) to impose its own carbon-based charge on CBAM-covered exports, ensuring revenues stay in India. This IBAM should be developed through Annex 14-A of the India-EU FTA to be recognized as a "carbon price paid in the country of origin" under CBAM Article 9, preventing double-pricing and financing India's green transition.
- The EU's Carbon Border Adjustment Mechanism (CBAM) will impose a carbon price on imports starting January 1, 2026, raising concerns about revenue retention.
- India should introduce an India Border Adjustment Mechanism (IBAM) to collect carbon-based charges on its exports, keeping the revenue domestically.
- IBAM should be designed in coordination with the EU through Annex 14-A of the India-EU FTA to ensure it's recognized under CBAM Article 9.