The Indian-flagged LPG carrier Shivalik, with a cargo-carrying capacity of more than 54,000 tonnes, successfully crossed the Strait of Hormuz on Friday, according to tracking data. The vessel, owned by the Shipping Corporation of India, had departed from Ras Laffan, Qatar, and was originally bound for the U.S. This transit is significant as the Strait of Hormuz is a volatile region, especially since the West Asia conflict began on February 28, which had left 24 Indian ships stranded upstream. While the Indian Navy denied guiding the Shivalik, the government is in constant touch with stakeholders regarding the 23,000 Indian nationals working in the Persian Gulf region.
- Indian-flagged LPG carrier Shivalik successfully navigated the Strait of Hormuz.
- The transit is critical given the ongoing West Asia conflict and previous stranding of Indian ships.
- The Shivalik's cargo capacity is equivalent to nearly one day of India's LPG imports.
A Parliamentary Standing Committee has recommended that the government constitute a High-Level Expert Committee to assess India's urban infrastructure requirements, financing needs, governance reforms, and capacity-building imperatives up to 2047. This recommendation stems from the absence of an integrated long-term urban investment and strategy framework, which could lead to fragmented planning and resource allocation issues. The Ministry of Housing and Urban Affairs highlighted ongoing missions like AMRUT 2.0, SBM-U 2.0, PMAY-U 2.0, and Metro Rail projects, but the committee noted these are largely scheme-driven and sector-specific, lacking a comprehensive approach.
- A Parliamentary Standing Committee advocates for a High-Level Expert Committee on urban infrastructure.
- The committee would assess requirements, financing, governance, and capacity-building for urban infrastructure until 2047.
- The recommendation addresses the lack of an integrated long-term urban investment and strategy framework.
The Centre has allocated ₹57,381 crore to an Economic Stabilisation Fund through supplementary grants. This move aims to provide fiscal space to address global uncertainties like the $100-per-barrel oil shock, energy shortages, and supply chain disruptions from the West Asia conflict. Finance Minister Nirmala Sitharaman stated in the Lok Sabha that this allocation would not impact the fiscal deficit target for 2025-26. The Lok Sabha cleared a net cash outgo of ₹2.01 lakh crore, including this allocation, emphasizing a strong macroeconomic framework post-COVID-19 to absorb economic shocks without deviating from the fiscal consolidation road map.
- The Centre established an Economic Stabilisation Fund with ₹57,381 crore to manage global economic uncertainties.
- The fund aims to provide fiscal headroom to respond to global headwinds, including oil shocks and supply chain disruptions.
- Finance Minister Nirmala Sitharaman assured that this allocation would not lead to missing the fiscal deficit target for 2025-26.
The Economic Survey 2025-26 projects that India's new labour codes will significantly increase formalisation, create 77 lakh jobs, and boost GDP by 1.25% by 2029-30. However, the article argues that these optimistic projections overlook the realities of India's informal workforce, where over 80% of workers are unprotected. The codes raise thresholds for protections and promote 'fixed-term employment,' which undermines job security. Issues like unclear rules for gig worker schemes, reskilling funds, and minimum wage methodology, along with the weakening of labour inspections, suggest that the codes may not genuinely improve workers' lives or reduce informality.
- The Economic Survey 2025-26 optimistically projects that new labour codes will boost formalisation, job creation, and GDP growth.
- The codes raise thresholds for defining 'factory' and 'contract labour,' potentially making it easier for firms to avoid permanent employment.
- The promotion of 'fixed-term employment' under the codes undermines job security, a key feature of formal work.
India is making strides in research, development, and innovation, but faces challenges like inadequate private sector participation and insufficient public funding. Despite schemes like the National Research Foundation (NRF) and tax incentives for startups, the innovation ecosystem remains fragmented. The article highlights the need for a holistic approach, moving beyond just increasing R&D expenditure to fostering a culture of innovation, improving governance, and ensuring equitable participation. It emphasizes the importance of human resources, social justice, and addressing the gender gap in STEM fields to achieve true innovation-led growth.
- India shows progress in R&D and innovation but is hampered by insufficient private sector engagement and fragmented governance.
- A true innovation-led economy requires a holistic approach, focusing on human resources, social justice, and equitable participation, not just R&D expenditure.
- The article highlights the importance of addressing the gender gap in STEM fields and ensuring diverse participation in innovation.
The Employees' Provident Fund Organisation (EPFO)'s Central Board of Trustees (CBT) approved the Employees' Pension Scheme (EPS) 2026 without wide consultations, replacing the EPS 1995. This decision affects approximately 5.4 crore contributing members and 82 lakh pensioners, raising serious transparency concerns. Over the past decade, features of the EPS 1995 were altered to the detriment of employees, including limiting coverage to ₹15,000/month and changing pensionable salary calculation from 12 to 60 months. The new scheme removes the higher pension option, which was previously extended by Supreme Court intervention. The article criticizes EPFO's approach, stating that a positive mindset and empathy are needed, not just changes in laws.
- The EPFO's Central Board of Trustees (CBT) approved the Employees' Pension Scheme (EPS) 2026 without consulting stakeholders, raising transparency concerns.
- The new scheme replaces EPS 1995 and impacts millions of contributing members and pensioners.
- Past changes to EPS 1995, such as limiting coverage to ₹15,000/month and altering salary calculation, have been detrimental to employees.
The article analyzes the Sixteenth Finance Commission's (FC16) recommendations, noting that while the States' share in the divisible pool remains at 41%, this figure is misleading. The divisible pool as a proportion of gross tax revenues has shrunk significantly due to growing cesses and surcharges retained by the Union. FC16 discontinued various grants and deferred structural reforms like amending Fiscal Responsibility Legislation and controlling off-budget borrowings. A key change is replacing the 'tax and fiscal effort' criterion with 'contribution to GDP' in the horizontal devolution formula, benefiting high-GSDP states and disadvantaging states with greater fiscal need. This re-engineering, coupled with conditional local body grants, shifts power towards the Centre and impacts states with weaker governance.
- The 41% States' share in the divisible pool is an 'illusion' as the divisible pool itself has shrunk relative to gross tax revenues due to increasing cesses and surcharges retained by the Union.
- The Sixteenth Finance Commission (FC16) discontinued revenue deficit, sector-specific, and State-specific grants, impacting targeted fiscal relief.
- FC16 deferred structural reforms such as amending Fiscal Responsibility Legislation and controlling off-budget borrowings.
The Ministry of Petroleum and Natural Gas (MoPNG) has invoked the Essential Commodities Act, 1955, to implement a tiered allocation structure for natural gas, prioritizing certain sectors. Domestic piped natural gas (PNG), Compressed Natural Gas (CNG) for vehicular fuel, and Liquified Petroleum Gas (LPG) production are among the priority sectors, along with fertilizer manufacturing and industrial consumers. Priority allocation ensures uninterrupted supply at "hundred per cent" for these sectors, based on their average consumption over the previous six months. Fertilizer plants will receive 70% of their consumption requirements. This move aims to manage supply amid shortages and ensure critical sectors are served efficiently.
- The government invoked the Essential Commodities Act, 1955, for tiered allocation of natural gas.
- Priority sectors include domestic PNG, CNG for vehicles, LPG production, fertilizer manufacturing, and other industrial consumers.
- Priority sectors will receive 100% uninterrupted supply based on previous six months' average consumption.
India's natural gas supply crunch is expected to be temporary, as higher global prices make imports from distant sources like the U.S. and Norway economically viable. While these shipments take about two months to arrive, potentially prolonging the interim shortage, officials confirm diversification of supplies. Domestic LPG production has increased by 10% after prioritizing household supplies over industrial users. The government has also formed a committee to address commercial LPG shortages faced by restaurateurs, ensuring uninterrupted supply to domestic households remains the utmost priority. This strategic shift aims to secure energy needs despite global market fluctuations.
- India's natural gas shortage is expected to be short-lived due to the economic viability of importing from new sources like the U.S. and Norway.
- Domestic LPG production has increased by 10% by prioritizing supplies to households.
- Shipping from distant sources will cause an interim delay of approximately two months for new supplies to arrive.
The article explores Amartya Sen's 'capabilities approach,' which defines development as the expansion of real freedoms and choices, rather than merely economic growth. It emphasizes that development should enable individuals to lead lives they value, focusing on what people are actually able to do and be. The piece critiques traditional development metrics like GDP and highlights the importance of social opportunities, education, and health in fostering human well-being. It also touches upon the challenges of implementing this approach in a political environment where outcomes are often reduced to technical tasks, overlooking the moral and ethical dimensions of development.
- Amartya Sen's capabilities approach defines development as the expansion of real freedoms and choices, not just economic growth.
- It focuses on what people are actually able to do and be (functionings and capabilities) rather than just income or resources.
- The approach emphasizes the importance of social opportunities, education, and health as crucial for human well-being and development.
The Reserve Bank of India (RBI) announced Open Market Operations (OMO) to purchase Government of India securities (G-Secs) worth ₹1,00,000 crore in two tranches of ₹50,000 crore each on March 9 and 13. This move is aimed at injecting liquidity into the financial system to offset constraints from advance tax outflows and ensure sufficient funds for bank lending. The decision comes amidst concerns over the prolonged war in West Asia and its potential impact on the Indian economy, including a depreciating rupee and surging crude oil prices, which pose significant threats to India's trade deficit, GDP growth, and inflation.
- The RBI is conducting Open Market Operations (OMO) to buy Government of India securities (G-Secs) worth ₹1,00,000 crore.
- The primary objective of this OMO is to inject liquidity into the financial system.
- This measure aims to counteract liquidity constraints caused by advance tax outflows and support bank lending.
The article argues that India's national security cannot be outsourced, especially given the escalating tensions in West Asia. It highlights the region's volatility, marked by attacks on energy installations and the blockade of the Strait of Hormuz, which directly impact India's energy security. The author criticizes India's default mode of reaction when its interests are threatened, such as the assassination of Khamenei or the torpedoing of an Iranian naval vessel. The piece emphasizes the need for India to adopt a more proactive and robust security architecture, moving beyond reliance on external powers and developing self-reliance in military equipment and strategic planning.
- India's national security strategy needs to be self-reliant and cannot depend on external powers.
- The escalating conflict in West Asia, including threats to energy installations and the Strait of Hormuz, directly impacts India's security and economy.
- India needs to move beyond a reactive stance and adopt a proactive, robust security architecture.
The article analyzes the ongoing Iran war, framing it as an attempt to destroy the Iranian ideology and achieve regime change rather than merely a military strike. It discusses the U.S. and Israel's objectives, Iran's decentralized response, and the broader regional implications, including threats to energy security and the Strait of Hormuz. The author argues that the conflict exposes the U.S.'s inability to protect Gulf states and complicates India's strategic space. India needs a more balanced regional policy, beyond just bilateral relations, to navigate complex dynamics and protect its interests amidst the U.S.-China rivalry and a volatile West Asia.
- The Iran war is primarily aimed at regime change and destroying Iranian ideology, not just military targets.
- The conflict has exposed vulnerabilities in U.S. security guarantees for Gulf states and intensified regional instability.
- India's strategic space is constrained by the U.S.-China rivalry and the volatile situation in West Asia.
External Affairs Minister S. Jaishankar stated that commitment to protect Indians in West Asia is an "overriding priority" and that security and trade flows are "always paramount." He confirmed ongoing diplomatic-level conversations with Iran and the U.S. and discussed efforts to help stranded Indian tourists and operate commercial flights. India also facilitated the docking of the Iranian naval vessel IRIS Lavan at Kochi, following a request for three ships. Jaishankar briefed MPs on assurances from Gulf states regarding the well-being of the Indian community and reiterated India's commitment to energy security amidst regional attacks and the Strait of Hormuz blockade.
- External Affairs Minister S. Jaishankar affirmed India's commitment to protecting its nationals and ensuring energy security in West Asia.
- Diplomatic conversations are ongoing with both Iran and the U.S. to manage regional tensions and ensure Indian interests.
- India facilitated the docking of the Iranian naval vessel IRIS Lavan at Kochi, demonstrating humanitarian assistance and diplomatic engagement.
The article examines why Finance Commission (FC) grants to cities remain limited, despite the growing importance of urban areas. It highlights that cities receive a disproportionately small share of the country's GDP and central transfers, with per capita devolution showing no significant change. The 16th FC emphasizes that cities must find avenues to increase their own revenue and expand the tax base. The article points out that while FCs recommend grants for specific services like water supply and sanitation, they often lack objective parameters for allocation and do not adequately address the overall financial needs of cities. This limitation hinders urban development and effective local governance.
- Indian cities receive a disproportionately small share of central transfers and GDP, limiting their financial autonomy.
- Finance Commissions recommend grants for specific urban services but often lack objective parameters for equitable allocation.
- The 16th Finance Commission emphasizes cities' need to enhance their own revenue generation and expand their tax base.
The U.S. Supreme Court rejected former President Trump's steel and aluminum tariffs, ruling he overstepped his authority under the International Emergency Economic Powers Act (IEEPA). The Court emphasized that while the President has broad powers to regulate trade during emergencies, these powers are not unlimited and require specific congressional authorization for tariffs. The ruling highlighted that the President cannot impose tariffs based on "objective parameters" without clear legislative backing. This decision underscores the importance of checks and balances, clarifying the limits of presidential power in trade policy and potentially impacting future trade disputes.
- The U.S. Supreme Court rejected Trump's steel and aluminum tariffs, citing a lack of presidential authority under the IEEPA.
- The Court clarified that presidential powers to regulate trade, even during emergencies, are not absolute and require specific congressional authorization.
- The ruling emphasizes the constitutional principle of checks and balances, limiting executive overreach in trade policy.
The article analyzes the financial burden of cancer treatment in India, noting that it is three times higher than for other ailments. Medicines constitute the largest component of expenditure, especially in public hospitals in rural areas. While private hospitals charge more, the relative financial strain is higher in the government sector, particularly for the poor. The Budget's proposal for full exemption of basic customs duty on 17 cancer-related drugs is a crucial intervention. Data shows that the cost multiplier for cancer treatment in public hospitals increased from 4x in 2014 to 5x in 2017-18, highlighting the deepening financial strain on patients.
- Cancer treatment is significantly more expensive than other ailments, with medicines being the largest cost component.
- Despite lower absolute costs, the relative financial burden of cancer treatment is higher for patients in public hospitals, especially in rural areas.
- The Union Budget's full exemption of basic customs duty on 17 cancer-related drugs is a critical step to reduce patient costs.
The Union Budget 2026-27 proposes to train 1.5 lakh multiskilled caregivers, yet it overlooks the five million women already serving as Accredited Social Health Activists (ASHAs), Anganwadi workers, and mid-day meal workers. These women, classified as 'volunteers', perform essential public services but receive meager honorariums, lack formal contracts, and basic benefits, reflecting a "care penalty" rooted in gendered norms. The article argues that their work, being recurrent and central, should be converted into permanent posts, as supported by the Supreme Court's ruling in Dharam Singh & Anr. vs State of U.P. & Anr. Formalizing their roles and extending NSQF-aligned training to them is essential for India to build a robust care ecosystem and achieve its health ambitions.
- India's Budget focuses on training new caregivers but neglects existing 'volunteer' care workers like ASHAs and Anganwadi workers.
- These women perform essential, continuous services but lack formal employment benefits and receive meager honorariums due to gendered perceptions of care work.
- The Supreme Court's ruling in Dharam Singh & Anr. vs State of U.P. & Anr. supports converting recurrent 'volunteer' roles into permanent posts.
The article discusses the emerging economic alignment between Canada and India, marked by Canadian Prime Minister Mark Carney's recent visit and the formal relaunch of Comprehensive Economic Partnership Agreement (CEPA) negotiations. Both nations aim to double bilateral trade to $70 billion by 2030. Key areas of cooperation include energy (uranium supply agreement), critical minerals, technology, financial services, and agriculture. The renewed political resolve and strategic alignment are expected to create opportunities for partnerships, joint ventures, and investments, with Canada seeking to diversify economic partnerships amid geopolitical uncertainty.
- Canadian Prime Minister Mark Carney's visit to India signaled a renewed political will to strengthen economic ties.
- The Comprehensive Economic Partnership Agreement (CEPA) negotiations have been formally relaunched, aiming to double bilateral trade to $70 billion by 2030.
- Key sectors for cooperation include energy (uranium), critical minerals, technology, financial services, and agriculture.
The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, 2025, which replaces MGNREGA, is awaiting the framing of rules under 11 categories before implementation. The Union Rural Development Ministry is consulting with State governments on tricky issues like a formula for "normative allocation" based on objective parameters and categorizing Gram Panchayats. States also need to enroll themselves on DBT Sparsh, conduct e-Know Your Customer (eKYC) verification for job cards, and onboard Yuktdhara, a geospatial planning portal. The Centre has six months to implement the scheme from the commencement date, which is yet to be notified.
- The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, 2025, is set to replace MGNREGA.
- The Centre needs to frame rules under 11 categories, including a formula for "normative allocation" for States based on objective parameters.
- States are required to implement several steps like DBT Sparsh enrollment, eKYC verification for job cards, and using the Yuktdhara portal.
India signed a C$2.6-billion deal with Canadian company Cameco for 10,000 tonnes of uranium supply from 2027 to 2035, enhancing its energy security. India's domestic uranium reserves are low-grade, making imports crucial for its civilian nuclear power programme, which currently operates 24 reactors with 9 GW capacity and aims for 100 GW by 2047. The deal falls under the 2010 India-Canada Civil Nuclear Cooperation Agreement, which requires India to provide "fissionable material accounts." Uranium is also used for research, medical isotopes, and defense purposes, including nuclear warheads and submarines.
- The uranium deal with Canada is crucial for India's energy security, supplementing its low-grade domestic reserves.
- India's nuclear power program, transitioning through three stages, aims for significant capacity expansion by 2047.
- The deal operates under the India-Canada Civil Nuclear Cooperation Agreement, which includes specific accountability requirements.
The Strait of Hormuz is a critical chokepoint connecting the Persian Gulf to the Arabian Sea, through which one-third of the world's seaborne crude oil and one-quarter of global LNG pass. Tensions in West Asia, particularly involving the US and Iran, frequently disrupt shipping and raise concerns about global energy supplies. India is heavily dependent on this strait, with nearly two-thirds of its crude oil and half of its natural gas imports routed through it. To mitigate risks, India is exploring alternative supply routes and has invoked emergency powers for domestic refineries to ramp up LPG production.
- The Strait of Hormuz is a globally significant maritime chokepoint for oil and natural gas transit.
- Geopolitical tensions in West Asia directly impact the security and navigability of the Strait, affecting global energy markets.
- India has a substantial reliance on the Strait of Hormuz for its energy imports, making disruptions a major concern for its energy security.
The Indian government is considering deploying Navy ships to escort Indian-flagged vessels stranded in the Persian Gulf, with a decision expected soon. This move comes as approximately 10% of the stranded oil tankers and gas carriers are Indian-flagged. The Indian Navy has previously conducted Operation Sankalp to ensure maritime security in the Gulf region, including actions against Houthi rebels. While Iran has promised not to attack neighboring countries, India has also diversified its crude oil supplies, with 70% now sourced without crossing the Strait of Hormuz, aiming to prevent retail price hikes for petrol and diesel.
- India is considering deploying its Navy to escort stranded ships in the Persian Gulf, emphasizing maritime security.
- Operation Sankalp has been a key Indian Navy initiative for ensuring maritime security in the Gulf region, including countering Houthi attacks.
- The Strait of Hormuz is a critical chokepoint, and disruptions there significantly impact global and Indian energy supplies.
Domestic cooking gas prices were hiked by ₹60 per cylinder, and commercial cylinders by ₹114.50, attributed to a sharp rise in global prices due to the West Asia conflict disrupting tanker movement through the Strait of Hormuz. Non-subsidised LPG now costs ₹913 per 14.2-kg cylinder in Delhi. The government is considering deploying Navy ships to escort Indian-flagged vessels stranded in the Persian Gulf, as India relies heavily on imports via the Strait of Hormuz. Emergency powers have been invoked to ramp up domestic LPG production.
- Domestic and commercial cooking gas prices have been significantly increased due to global price surges and disruptions in West Asia.
- The Strait of Hormuz is a crucial waterway for India's crude oil and natural gas imports, and its disruption impacts energy security.
- The Indian government is contemplating deploying Navy ships to escort Indian-flagged vessels in the Persian Gulf to ensure maritime security.