This May Day analysis highlights the precarious state of Indian labour, citing two recent events: a protest by garment workers in Noida demanding higher minimum wages and a fatal boiler explosion at a Vedanta plant in Chhattisgarh. These incidents underscore the impact of India's new labour regime, which consolidated 29 central labour laws into four codes in November 2025. Critics argue these reforms, including increased thresholds for layoffs and diluted inspection mechanisms, favour employers and reduce worker protections. The article contends that the reforms have not rationalized protection but rather removed it, leading to wage stagnation and unsafe working conditions, as exemplified by the Noida strike and the Singhitarai accident.
- May Day serves as a diagnostic for the state of Indian labour, marked by recent worker protests and industrial accidents.
- India's new labour regime, enacted in November 2025, consolidated 29 central labour laws into four codes.
- The reforms are criticized for raising thresholds for layoffs and diluting safety oversight, potentially favouring employers over workers.
The Union Finance Ministry has cautioned that states with revenue deficits and high debt burdens will struggle with fiscal shocks, potentially forcing them to reprioritise expenditure or seek more central funds. A report for April indicates nine out of 18 large states are projected to be in revenue deficit by 2026-27. Revenue deficit occurs when recurring expenditures like salaries, pensions, and subsidies exceed earned revenue. These states are constrained by debt servicing obligations, with some spending over 15% of revenue receipts on interest payments. Punjab has the highest projected ratio at 22.8%. States with both revenue deficits and high liabilities have less fiscal flexibility.
- The Union Finance Ministry has cautioned that states with revenue deficits and high debt burdens are vulnerable to fiscal shocks.
- Nine out of 18 large states are projected to be in revenue deficit by 2026-27, according to the Monthly Economic Review for April.
- A revenue deficit arises when recurring expenditures surpass revenue from taxes and fees.
The latest NSS data (80th round) reveals that despite a significant increase in health insurance coverage, hospitalisation rates haven't risen proportionally, and out-of-pocket (OOP) expenditure has sharply increased, especially in the private sector. Government-funded health insurance (GFHI) schemes like PMJAY have expanded coverage, but more people are shifting to private care, where costs are much higher. The article highlights that GFHI schemes, while targeting backward sections, disproportionately benefit the better-off in terms of service utilization. It argues that these schemes, by subsidizing private care, fail to protect households from financial hardship and suggests a need to strengthen the public healthcare system instead.
- Despite increased health insurance coverage, hospitalisation rates have not significantly increased, and OOP expenditure has risen sharply.
- A growing proportion of people are opting for private sector healthcare, where costs are considerably higher.
- Government-funded health insurance schemes (GFHI) like PMJAY have expanded coverage but are not effectively reducing financial hardship.
The Employees Provident Fund Organisation (EPFO) is set to launch E-PRAAPTI (EPF Aadhaar-Based Access Portal for Tracking Inoperative Accounts), a dedicated digital platform. This portal aims to facilitate the identification, tracking, UAN linking, and activation of old EPF accounts. It will provide a streamlined Aadhaar-based authentication mechanism, enabling members to securely access accounts without a linked UAN and initiate profile updates. Initially, it will be member ID-based, reducing manual intervention, documentation, and enhancing transparency. EPFO also settled a record 8.31 crore claims in 2025-26, with 71.11% of advance claims processed in auto mode, demonstrating improved efficiency.
- EPFO is launching E-PRAAPTI, a digital platform to manage inoperative EPF accounts.
- The portal will use Aadhaar-based authentication to help members access and activate their old accounts.
- E-PRAAPTI aims to reduce manual intervention, minimize documentation, and enhance transparency and efficiency in EPF services.
Prime Minister Narendra Modi inaugurated the 594-km Ganga Expressway in Hardoi, Uttar Pradesh, calling it a "new lifeline" for the state's connectivity and employment. Built at an approximate cost of ₹36,230 crore, the six-lane access-controlled expressway will significantly reduce travel time between Meerut and Prayagraj to about six hours. The project is expected to boost farmers' income by improving market access for their produce and contribute to Uttar Pradesh's goal of becoming a one-trillion-dollar economy. The PM highlighted the state's rapid infrastructure development, including expressways, airports, industrial corridors, and defence manufacturing, making it a key investment destination.
- Prime Minister Narendra Modi inaugurated the 594-km Ganga Expressway in Hardoi, Uttar Pradesh.
- The expressway is a six-lane access-controlled project aimed at significantly reducing travel time between Meerut and Prayagraj.
- It is expected to boost Uttar Pradesh's economy by improving market access for farmers and attracting investments.
The article, penned by Shashi Tharoor, argues that the war in Iran has devastated the country and shattered the Gulf region's long-held image as a stable haven for capital and trade. This conflict has triggered global economic consequences, including surging fuel prices, LPG/LNG shortages, and disruptions to supply chains, affecting Indian manufacturers and the working class. The Gulf's vulnerability is exposed, with businesses reconsidering expansion, capital flows hesitating, and migrant labour facing uncertainty. The war has undermined confidence in the region's security, impacting trade routes and investments, and highlighting India's deep entanglement with the Gulf's stability.
- The war in Iran has caused widespread physical destruction and crippled vital infrastructure within the country.
- The conflict has triggered significant global economic repercussions, including rising fuel prices and supply chain disruptions.
- The Gulf region's perceived stability and economic resilience have been shattered, leading to uncertainty for capital, businesses, and migrant labour.
The India-New Zealand Free Trade Agreement (FTA), though seemingly small due to New Zealand's economy size, is strategically significant as it's one of eight recent trade deals. India aims to diversify supply chains and export destinations, moving away from reliance on China and mitigating risks from volatile markets like the US. The FTA's strengths include New Zealand immediately removing all goods tariffs and India avoiding concessions on sensitive sectors like dairy. New Zealand also committed to facilitating $20 billion in investments in India over 15 years, similar to the EFTA pact's $100 billion commitment. This deal supports India's goals of increasing exports, creating jobs, and bolstering its capital account.
- The India-New Zealand FTA is part of India's broader strategy to diversify trade relations and reduce dependence on specific markets.
- New Zealand will immediately remove all goods tariffs upon the agreement's execution, benefiting Indian exporters.
- India successfully avoided providing concessions on sensitive sectors, notably dairy, which New Zealand was keen to include.
The U.S. war on Iran has evolved into a "battle of wills" over the Strait of Hormuz and the Gulf of Oman, characterized by naval blockades and stalled diplomacy. Iran has restricted traffic through the Strait since the US-Israel attacks on February 28, refusing to ease control until the US lifts its blockade of Iranian ports. Despite a ceasefire in Lebanon, Israeli airstrikes continue, and the US maintains its blockade, hoping economic pressure will force Iran to yield. The article advocates for a phased, reciprocal de-escalation: the US lifting its blockade and Iran reopening the Strait to commercial shipping, to reinforce the fragile ceasefire and build confidence for future talks.
- The conflict between the U.S. and Iran has intensified into a standoff over control of the Strait of Hormuz and the Gulf of Oman.
- Iran has restricted traffic through the Strait of Hormuz since the US-Israel attacks, demanding the US lift its blockade of Iranian ports.
- Diplomatic efforts, mediated by Pakistan, have stalled, with Iran refusing further direct talks with Washington.
The UAE announced its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC) and the wider OPEC+ group, effective May 1. This decision, driven by the UAE's long-term strategic and economic vision, aims to accelerate investment in domestic energy production and allow it to act responsibly by bringing additional production to market gradually, aligned with demand. The move follows years of the UAE pushing back against production quotas it felt were too low. The exit is not expected to have immediate market effects due to constrained oil supplies from the war in Iran, which has closed the Strait of Hormuz.
- The UAE is withdrawing from OPEC and OPEC+ to pursue its long-term strategic and economic vision, focusing on domestic energy production.
- The decision allows the UAE to increase oil production independently, addressing its past dissatisfaction with low OPEC quotas.
- The immediate market impact is expected to be minimal due to existing oil supply constraints from the war in Iran and the closure of the Strait of Hormuz.
India's Index of Industrial Production (IIP) growth slowed to a five-month low of 4.1% in March 2026, primarily due to a near-halving in construction sector growth and low growth in consumer-centric sectors. This slowdown has been observed since January 2026, even before the West Asia crisis began. For the full financial year 2025-26, IIP growth was 4.1%, marginally faster than the previous year. Manufacturing sector growth also slowed to 4.3% in March, while capital goods accelerated to a 29-month high of 14.6%, indicating intact investment-led demand despite muted consumer non-durables growth.
- India's industrial output growth, measured by the IIP, reached a five-month low of 4.1% in March 2026.
- The slowdown is attributed to reduced growth in construction and consumer-centric sectors.
- Despite the overall slowdown, the capital goods sector showed robust growth, indicating sustained investment-led demand.
The Reserve Bank of India (RBI) has revised its rules for classifying bad loans, or Non-Performing Assets (NPAs), to align with globally accepted standards. Effective April 1, 2027, the new Master Directions stipulate that if one loan of a borrower is classified as an NPA, all other loans of that borrower will also be considered NPAs. An NPA borrower will only be reclassified as a 'standard asset' upon repayment of all outstanding interest and principal across all credit facilities. The 90-day overdue rule for initial NPA classification remains unchanged, and banks are mandated to establish automated systems to identify NPAs.
- The Reserve Bank of India (RBI) has revised its bad loan classification rules to align with global standards.
- Effective April 1, 2027, if one loan of a borrower becomes an NPA, all other loans of that borrower will also be classified as NPA.
- A borrower will only be considered a 'standard asset' after repaying all arrears of interest and principal across all credit facilities.
Tamil Nadu has achieved double-digit real economic growth for the second consecutive year, posting 11.19% in 2024-25 and 10.83% in 2025-26, significantly surpassing the national average of 7.4%. The state's Gross State Domestic Product (GSDP) at current prices is projected to reach ₹35.29 lakh crore in 2025-26, marking a 13.16% nominal growth. This strong performance is driven by robust growth in the secondary (15%), services (8.5%), and primary (6%) sectors, with agriculture showing a notable turnaround.
- Tamil Nadu has recorded double-digit real economic growth for two consecutive years.
- The state's growth rates were 11.19% in 2024-25 and 10.83% in 2025-26, significantly exceeding the national average.
- Tamil Nadu's Gross State Domestic Product (GSDP) is projected to reach ₹35.29 lakh crore in 2025-26, making it India's second-largest state economy.
India and New Zealand have signed a Free Trade Agreement (FTA), hailed as a historic step to deepen trade, investment, and people-to-people ties. New Zealand will remove tariffs on all Indian goods, while India will reduce or remove tariffs on 95% of its current imports from New Zealand. The deal, announced in March 2025 and concluded in December 2025, is one of India's fastest negotiated FTAs. It also includes provisions for mobility of professionals and students, and a commitment from New Zealand to facilitate $20 billion in investments into India.
- India and New Zealand have signed a Free Trade Agreement (FTA) to boost trade, investment, and people-to-people ties.
- New Zealand will eliminate tariffs on all goods imported from India, while India will reduce or remove tariffs on 95% of current imports from New Zealand.
- Key products excluded by India from tariff reductions include dairy, animal products (other than sheep meat), agricultural products, sugar, artificial honey, copper, and aluminium.
Sri Lanka is inviting Expressions of Interest from domestic and international investors to operate its loss-making Mattala Rajapaksa International Airport (MRIA) in Hambantota. The airport, built with a nearly $200-million Chinese loan under former President Mahinda Rajapaksa, has been commercially unviable since its 2013 launch, accumulating a net loss of approximately $130 million. Despite previous interest from India and Russia for joint ventures, proposals did not materialize. The government aims to utilize the airport's resources, which currently handles no scheduled flights, only charter planes, highlighting the need for external investment to make it viable.
- Sri Lanka is seeking investors to operate its loss-making Mattala Rajapaksa International Airport (MRIA).
- The airport was built with a nearly $200-million loan from China.
- MRIA has accumulated a net loss of approximately $130 million since its launch in 2013.
Prime Minister Narendra Modi lauded India's progress in nuclear and wind energy sectors during his 'Mann ki Baat' address. He highlighted the achievement of criticality in the fast breeder nuclear reactor at Kalpakkam, Tamil Nadu, calling it a 'historic milestone' and emphasizing its indigenous technology. Modi also noted India's rapid advancement in wind energy, with generation capacity exceeding 56 gigawatts (GW) and ranking fourth globally. He mentioned the creation of new opportunities and skills for youth in this sector, contributing to sustainable economic growth.
- PM Modi praised India's achievement of criticality in the fast breeder nuclear reactor at Kalpakkam.
- The fast breeder nuclear reactor is built entirely with indigenous technology.
- India's wind energy generation capacity has exceeded 56 GW.
India and New Zealand are set to sign a Free Trade Agreement (FTA) on Monday. This agreement will remove tariffs on 100% of India's exports to New Zealand and significantly reduce or remove tariffs on 95% of current imports from New Zealand. Commerce Minister Piyush Goyal highlighted the pact as a defining moment in bilateral relations. The deal will provide immediate duty-free access for India on 100% of tariff lines, down from New Zealand's previous 10% tariff on about 450 Indian export items. India has managed to keep several sensitive items, including all dairy products, out of the FTA.
- India and New Zealand will sign an FTA on Monday.
- The FTA will eliminate tariffs on 100% of India's exports to New Zealand.
- Tariffs on 95% of current imports from New Zealand will be sharply reduced or removed.
Ashok Kumar Lahiri, an economist and MLA from West Bengal, has been appointed as the new Vice-Chairperson of NITI Aayog. He replaces Suman K. Bery, who held the position since May 2022. Lahiri, a former Chief Economic Adviser, joins a re-constituted panel that includes K.V. Raju, M. Srinivas, Abhay Karandikar, Gobardhan Das, and Rajiv Gauba as full-time members. Prime Minister Narendra Modi, who is the Chairman of NITI Aayog, expressed confidence that Lahiri's efforts will further energize policymaking and foster cooperative federalism, enhancing ease of living in India.
- Ashok Kumar Lahiri has been appointed as the new Vice-Chairperson of NITI Aayog.
- He is an economist and an MLA from West Bengal, previously serving as Chief Economic Adviser.
- Lahiri replaces Suman K. Bery, who held the post since May 2022.
The U.S. sanctions waiver for India's involvement in Iran's Chabahar port project is ending, forcing India to choose between continuing its role and facing American sanctions. The U.S. Treasury Secretary confirmed no extension, citing the ongoing U.S.-Iran conflict and efforts to squeeze Iran's economy. India has been exploring options to minimize exposure, including withdrawing personnel, prepaying investment, and considering transferring its stake in the Shahid Beheshti Terminal to an Iranian company. This move is seen as a 'tactical workaround' to safeguard India's strategic interests in the port, which is crucial for connectivity to Afghanistan and Central Asia.
- The U.S. sanctions waiver for India's Chabahar port project is set to expire, creating a dilemma for India.
- India is exploring options like transferring its stake to an Iranian company to maintain strategic interest while avoiding U.S. sanctions.
- The Chabahar port is vital for India's connectivity to Afghanistan and Central Asia, bypassing Pakistan.
The Reserve Bank of India (RBI) cancelled the banking licence of Paytm Payments Bank Limited (PPBL), effective from the close of business on April 24, 2026, due to the bank's failure to comply with licence conditions. This action prohibits PPBL from conducting any banking business. The RBI stated it would apply to the High Court for winding up the bank, assuring sufficient liquidity to repay deposits. Paytm's parent company, One 97 Communications Ltd., has distanced itself from PPBL, clarifying it has no material business arrangements and that other Paytm services like the app, UPI, and QR will continue to operate uninterrupted.
- The Reserve Bank of India (RBI) cancelled the banking licence of Paytm Payments Bank Limited (PPBL).
- The cancellation is effective from April 24, 2026, prohibiting PPBL from conducting banking business due to non-compliance with licence conditions.
- RBI will apply to the High Court for winding up the bank, assuring that PPBL has enough liquidity to repay deposits.
India's auto-makers have agreed to new Corporate Average Fuel Efficiency (CAFE-III) targets, aiming to reduce CO2 emissions from 113 g/km to 77 g/km by 2031-32. While seemingly ambitious, the framework's flexible design, including credits for higher ethanol blending and incremental efficiency technologies, may weaken compliance and slow the essential transition to electric mobility. Super-credits for EVs and credit banking further allow manufacturers to meet targets without a structural shift. The article argues that without sharper incentives for electrification, CAFE-III risks becoming a paper exercise rather than driving meaningful change in emissions reduction, energy security, and climate mitigation.
- India's auto-makers have agreed to new Corporate Average Fuel Efficiency (CAFE-III) targets to reduce CO2 emissions.
- The new targets aim for a reduction from 113 g/km under CAFE-II to 77 g/km by 2031-32, with the cycle running from April 2027 to March 2032.
- Flexible compliance pathways, such as credits for ethanol blending and incremental efficiency technologies, may dilute the effectiveness of the targets.
Telangana's SEEEPC Survey 2024, a large-scale population survey, reveals that caste inequality in the state is exponential, not incremental, with Scheduled Castes (SCs) and Scheduled Tribes (STs) being structurally locked in despite economic growth. The Composite Backwardness Index (CBI) shows SCs are three times more backward than General Castes. The survey highlights significant heterogeneity within Backward Classes and persistent urban-rural disparities. It recommends education as a crucial lever, emphasizing quality government schools in SC/ST-majority areas to break the cycle of occupational segmentation. The report underscores that income-based targeting has failed, advocating for caste-sensitive, multidimensional interventions.
- Telangana's SEEEPC Survey 2024 reveals exponential caste inequality, with SCs and STs structurally disadvantaged despite economic growth.
- The Composite Backwardness Index (CBI) shows SCs are three times more backward than General Castes.
- The survey identifies significant heterogeneity within Backward Classes and persistent urban-rural disparities in outcomes.
The Indian rupee weakened past the 94 level against the U.S. dollar, falling 23 paisa to 94.01, marking its fourth consecutive session of decline despite RBI intervention. This depreciation is driven by high hedging dollar demand, a shift towards safe-haven assets, and a simultaneous rally in crude oil prices (over $100 a barrel) due to West Asia conflict. Analysts attribute the rupee's weakness to a rising current account deficit caused by high crude prices and sustained FPI outflows. Escalating conflict and uncertainty around U.S.-Iran talks further support crude prices, limiting rupee recovery and raising inflation concerns.
- The Indian rupee depreciated to 94.01 against the U.S. dollar, marking its fourth consecutive session of fall.
- The fall is attributed to high hedging dollar demand, safe-haven asset shift, and rising crude oil prices due to West Asia conflict.
- RBI intervention failed to arrest the slide, indicating strong market pressures.
This article discusses the decline of trade union effectiveness in India and its impact on workers, particularly concerning minimum wages and social security. Kingshuk Sarkar highlights the fragmentation of unions, their focus on regular permanent workforce, and the low unionisation rate (6.3% overall) post-liberalisation. Fredy K. Thazhath attributes this to the general crisis of capitalism, outsourcing, and privatisation, which have weakened workers' bargaining power. Both experts agree that the new Labour Codes do not favor workers and that the implementation of existing labour laws, particularly regarding minimum wages, remains inadequate, leading to a fight for survival for many workers.
- Indian trade union movement has weakened significantly post-liberalisation, with declining bargaining power for workers.
- Unionisation rate in India is very low, at 6.3% overall, with only 1.8% in the private sector.
- The weakening is attributed to fragmentation of unions, outsourcing, privatisation, and political affiliations.
India, highly vulnerable to climate change, is strengthening adaptation in its NDCs for 2031-35, aiming to mainstream resilience from national to grassroots levels. Despite initiatives like ICAR's NICRA and Tamil Nadu's Climate Resilient Villages (CRV) programme, adaptation efforts are scattered, and financing remains skewed towards mitigation. The article highlights the need to quantify adaptation benefits, streamline domestic public finance through climate budgeting, and extend institutional mechanisms to local bodies for locally led adaptation. It emphasizes a whole-of-systems approach for effective implementation and achieving national commitments.
- India is highly vulnerable to climate change, with significant economic losses and human impact from extreme weather events.
- The updated NDCs for 2031-35 emphasize mainstreaming climate resilience and adaptation from national to grassroots levels.
- Current adaptation financing is insufficient and skewed towards mitigation, necessitating better resource mobilization and benefit quantification.