Following widespread strikes by gig workers, the Indian Labour Ministry published draft Rules to operationalize refreshed labor codes. However, the editorial argues these rules are insufficient. While the Code on Wages excludes gig work from a standard 'employment' relationship, the new framework focuses primarily on social security contributions rather than wages or working conditions. The draft Rules require workers to register on a portal and meet specific engagement thresholds (90 days with one aggregator or 120 days across multiple). Critics argue these thresholds are restrictive and fail to account for illness, maternity, or market demand fluctuations, leaving workers structurally insecure.
- The draft Rules require gig workers to register on a government portal and aggregators to upload worker details quarterly for social security purposes.
- To qualify for benefits, a worker must have been engaged for at least 90 days with one aggregator or 120 cumulative days across multiple aggregators in a financial year.
- The current framework treats gig work as distinct from traditional employment, exempting platforms from standard wage and working condition obligations.
As 2026 begins, China faces a paradox of domestic economic challenges and assertive international projection. Despite a slowdown in growth (around 5%) and deflationary pressures, Beijing continues to project power through the 'Global South' and 'China Shock 2.0' in high-tech manufacturing. The article highlights the recalibration of U.S.-China relations under the 'America First' approach and the persistent friction in India-China relations. While some tactical stabilization occurred in 2025, core issues like the border dispute and China's support for Pakistan remain unresolved. India must navigate this by strengthening domestic capabilities and maintaining external balances while preparing for a long-term strategic competition.
- China's economic growth has slowed to approximately 5%, with persistent deflationary pressures and a struggling property sector weighing on confidence.
- The 'China Shock 2.0' involves aggressive exports of high-tech goods like electric vehicles and solar panels to compensate for weak domestic demand, causing global trade tensions.
- India-China relations saw tactical stabilization in 2025, but structural issues and border tensions, including the creation of 'buffer zones', continue to hinder full normalization.
The Tamil Nadu government has introduced the Tamil Nadu Assured Pension Scheme (TAPS) for its employees, replacing the Contributory Pension Scheme. Under TAPS, employees will receive an assured pension equal to 50% of their last-drawn basic pay. Employees contribute 10% of their basic pay, while the state government covers the additional funds required to ensure the 50% payout. The scheme also includes dearness allowance hikes twice a year and a family pension of 60% in case of a pensioner's death. This move aims to address long-standing demands for the restoration of the Old Pension Scheme (OPS).
- TAPS provides an assured pension of 50% of the last-drawn basic pay for state government employees.
- Employees contribute 10% of their basic pay, with the state government funding the remainder required for the assured amount.
- The scheme includes a family pension of 60% of the pensioner's amount for nominees upon the death of the pensioner.
The Ministry of Commerce and Industry has introduced two new credit-linked schemes under the Export Promotion Mission (EPM) to support MSME exporters. The 'Interest Subvention for Pre- and Post-Shipment Export Credit' aims to reduce financing costs and improve liquidity. The second scheme, 'Collateral Support for Export Credit,' provides MSMEs with access to bank credit even with limited collateral, offering guarantees up to 85% for micro and small exporters. These initiatives, part of the Niryat Protsahan category, entail an outlay of ₹5,181 crore over six years to integrate Indian MSMEs into global value chains.
- The Export Promotion Mission (EPM) aims to lower the cost of credit and ease access to finance for Indian exporters.
- Interest subvention schemes are designed to strengthen MSME liquidity and enhance their global competitiveness.
- The Collateral Support scheme, implemented via CGTMSE, reduces the burden of providing security for export-linked loans.
The Union Finance Ministry has announced a new taxation regime for tobacco products starting February 1, 2026. The Central Excise (Amendment) Act, 2025, specifies new excise duty rates. Beedis have moved to the 18% GST category, while other tobacco products are in the 40% bracket. This move aims to ensure cigarette prices rise faster than consumer incomes to curb affordability. Additionally, the GST compensation cess on tobacco will end, replaced by a dedicated cess under the Health Security se National Security Act, 2025, to fund national security functions and health initiatives.
- The new tax regime aims to reduce the affordability of tobacco products by increasing excise duties.
- Beedis are moved from a defunct 28% slab to an 18% GST category, while other products face a 40% slab.
- A new dedicated cess under the Health Security se National Security Act, 2025, will replace the GST compensation cess.
The Himachal Pradesh government is finalizing a policy to legalise and regulate cannabis cultivation, aiming to generate annual revenue of ₹1,000 crore to ₹2,000 crore. The policy focuses on the crop's medicinal value, particularly for pain management and anti-inflammatory applications, as well as industrial uses of hemp. Chief Minister Sukhvinder Singh Sukhu stated that this strategic shift aims to replace the narcotic image of hemp with a productive identity. The framework will include strict rules and regulations to prevent illegal trade while promoting a new economic avenue for the state.
- Himachal Pradesh aims to generate up to ₹2,000 crore annually through legal and regulated cannabis cultivation.
- The policy focuses on medicinal applications like pain management and industrial use of hemp fiber.
- The move seeks to transition cannabis from an illegal drug trade association to a regulated medicinal crop.
The U.S. has proposed a 100% tariff on branded and patented pharmaceutical imports, posing a significant challenge to India, the 'pharmacy of the world.' India's $50 billion pharma sector contributes 1.72% to its GDP and supplies 40% of U.S. generics. To mitigate risks, India has implemented GST rationalization for drugs (dropping from 12% to 5%) and is promoting domestic manufacturing through PLI schemes. The API sector is projected to grow significantly, reaching ₹1.82 trillion by 2030. Diversification into African and Southeast Asian markets is also being prioritized to offset tariff risks.
- India supplies 40% of U.S. generic drugs, saving the U.S. healthcare system approximately $219 billion in 2022.
- Proposed 100% U.S. tariffs could impact India's $50 billion pharmaceutical sector, which contributes 1.72% to national GDP.
- GST on many drugs and medicines was reduced from 12% to 5% effective September 22, 2025, to provide domestic ballast.
This analysis argues that Tamil Nadu's high absolute debt figures are misleading when viewed without the context of its large economy and high human development. While TN's debt is higher than states like Uttar Pradesh in absolute terms, its debt-to-GSDP ratio is lower and on a downward trend. TN's fiscal deficit remains within the limits set by the Fiscal Responsibility and Budget Management (FRBM) framework. The state's borrowing is channeled into productive investments like education, health, and infrastructure, leading to higher per capita income and better service delivery, which justifies its fiscal strategy within a cooperative federalist structure.
- Tamil Nadu's debt-to-GSDP ratio is estimated at 26.1% for 2025-26, which is lower than Uttar Pradesh's projected 29.4%.
- The state generates 75% of its revenue from its own sources, reducing its dependence on central transfers compared to other states.
- TN's per capita GSDP is significantly higher than the national average, reflecting successful industrialization and human capital formation.
Unions representing gig and platform workers in India have announced a nationwide strike to protest against "systemic exclusion" from core labor entitlements and constitutional guarantees. The Gig and Platform Services Workers Union (GIPSWU) has submitted a demand charter to the Union Labour Minister, calling for the legal recognition of platform workers as 'workers' under labor laws rather than 'partners'. Key demands include the discontinuation of 10-20 minute delivery mandates to ensure worker safety and immediate government intervention to stop pervasive harassment and discrimination in the food delivery and taxi service sectors.
- Gig workers are currently classified as 'partners', which excludes them from benefits like minimum wage, insurance, and social security.
- The strike highlights the severe implications for India's growth if the issues of the gig workforce remain unaddressed.
- Unions are demanding the removal of strict delivery timelines that compromise the safety of delivery personnel on the road.
The Indian government announced that India has officially overtaken Japan to become the world's fourth-largest economy, with a GDP valued at $4.18 trillion. Driven by robust private consumption and consistent growth, India is now poised to displace Germany and become the third-largest economy by 2030, with a projected GDP of $7.3 trillion. International agencies like the IMF, World Bank, and S&P have echoed this optimism, projecting growth rates between 6.2% and 6.7% for the coming years. The government attributes this success to strong economic foundations, structural reforms, and controlled inflation.
- India's real GDP grew by 8.2% in the second quarter of 2025-26, maintaining its status as the world's fastest-growing major economy.
- The U.S. remains the world's largest economy, followed by China in the second spot.
- The Asian Development Bank has lifted its 2025 forecast for India to 7.2% due to stronger consumer demand.
India and New Zealand have concluded a Free Trade Agreement (FTA) aimed at boosting bilateral trade and economic cooperation. The agreement emphasizes services and labor mobility, areas where India holds a comparative advantage. New Zealand has agreed to eliminate duties on 100% of its tariff lines for Indian exports, while India offers market access on 70% of its tariff lines. This deal is significant as it reflects India's growing confidence as a reliable economic partner and its ability to negotiate high-quality agreements with developed economies while protecting domestic interests like agriculture.
- The FTA provides duty-free access for Indian exports in labor-intensive sectors like textiles, apparel, and engineering goods.
- New Zealand has committed to investing $20 billion in India over the next 15 years, focusing on infrastructure and technology.
- The agreement includes an annex on health and traditional medicine, opening doors for India's pharmaceutical and healthcare sectors.
India and New Zealand concluded a Comprehensive Free Trade Agreement (FTA) in December 2025. Under this deal, New Zealand will provide zero-duty market access for 100% of India's exports, while India will relax tariffs on 95% of imports from New Zealand. Crucially, India has protected its sensitive dairy and agriculture sectors by excluding items like milk, cheese, and butter from the agreement. The FTA also includes provisions for the mobility of Indian professionals and students, and cooperation in traditional medicine like Ayurveda. This agreement is part of India's broader strategy to diversify trade partners and integrate into global value chains.
- New Zealand has committed to investing $20 billion in India over the next 15 years, with clawback mechanisms if targets aren't met.
- The deal facilitates easier visas and work rights for Indian skilled workers, particularly in IT, healthcare, and education.
- India's labor-intensive sectors like textiles, leather, and gems are expected to benefit significantly from zero-duty access.
This data-driven analysis highlights a puzzling divergence between industrial credit growth and industrial GDP (GVA-ASI) between 2016-17 and 2018-19. Historically, these two metrics moved in tandem. However, during this period, industrial credit slowed significantly while GVA-ASI showed an unexpected upturn. This decoupling suggests that industrial GDP might have been overestimated in the current National Accounts Statistics (NAS) series. The share of industrial credit in total bank credit has also declined from 42% in 2013 to 23% in 2024, with credit shifting toward the services sector and personal loans.
- The share of industrial credit in total bank credit has reached its lowest point in half a century.
- Credit growth in the western, southern, and northern regions was lower than the national average, while central and northeastern regions saw higher growth.
- The correlation between industrial credit and GVA-ASI dropped significantly in the pre-pandemic window (2016-2020).
Beyond the ethical arguments for equality, there is a compelling business case for LGBTQIA+ inclusion. India’s LGBTQIA+ community is estimated at 135 million people, with a purchasing power of approximately $168 billion. However, discrimination and exclusion lead to significant economic losses, estimated between 0.1% and 1.7% of India's GDP. The article emphasizes that inclusion should not be a seasonal marketing gesture but a strategic business imperative. Companies that prioritize representation and offer trans-inclusive policies foster stronger brand loyalty and attract top talent, while those failing to engage risk losing a massive market segment.
- The 'pink economy' represents a significant but under-recognised market opportunity in India's development story.
- Homophobia and exclusion result in tangible costs through health disparities and labor-related losses.
- Genuine inclusion requires corporate advocacy, trans-inclusive healthcare, and year-round commitment rather than performative 'rainbow washing'.
India has crossed the $4.1 trillion nominal GDP mark, becoming the world's fourth-largest economy. This growth is attributed to a series of structural reforms under 'Reform Express 2025,' focusing on ease of doing business, infrastructure, and energy security. Key initiatives include the National Single Window System, PM GatiShakti, and the decriminalization of thousands of legal provisions. The government is also pushing for energy independence through the Oilfields Amendment Act and a massive Nuclear Energy Mission. These reforms aim to create a predictable regulatory environment, attract private investment, and modernize logistics through new maritime and shipping laws.
- India's total exports reached $825.25 billion in 2024-25, supported by digital tools like the Trade Connect ePlatform.
- The PM GatiShakti National Master Plan has been opened to the private sector to streamline infrastructure planning.
- Significant legislative changes include the Indian Ports Act 2025 and the Merchant Shipping Act 2025 to modernize maritime trade.
India's crude oil import strategy has undergone a major transformation, shifting from a heavy reliance on West Asian suppliers to Russia. Historically, Saudi Arabia, Iraq, and the UAE accounted for two-thirds of India's imports. However, following the 2022 conflict in Ukraine and subsequent Western sanctions on Moscow, India began purchasing Russian oil at discounted rates. Russian oil, which accounted for less than 2% of imports in 2021-22, surged to over 35% by 2024-25. Currently, oil from Moscow constitutes one-third of India's overall import basket, reflecting a strategic move to ensure energy security and economic viability amidst global geopolitical shifts.
- Russia has emerged as India's top crude oil supplier, providing one-third of the total import basket.
- Imports from Russia jumped from under 2% in 2021-22 to approximately 35.8% in 2024-25.
- Sanctions on Iran in 2011 and 2018 previously forced India to reduce its Iranian oil share significantly.
Following the conclusion of Free Trade Agreement (FTA) negotiations with New Zealand, India has effectively achieved a "RCEP minus China" trade strategy. India withdrew from the Regional Comprehensive Economic Partnership (RCEP) in 2019 due to concerns over Chinese manufacturing dominance and potential trade deficits. By signing bilateral FTAs with 14 of the 15 RCEP members (excluding China), India secures market access without the risks of a multilateral pact that includes China. This approach allows India to maintain safeguards for sensitive sectors while integrating with the ASEAN-led economic bloc through individual agreements, avoiding systemic trade vulnerabilities.
- India has secured trade deals with all RCEP nations except China by concluding an FTA with New Zealand.
- India opted out of RCEP in 2019 to protect its domestic industry from duty-free Chinese imports.
- The 'RCEP minus China' strategy provides market access while avoiding the risks of a China-centric multilateral pact.
The Navi Mumbai region is poised for a significant economic boom driven by the upcoming Navi Mumbai International Airport (NMIA). Analysts predict that the commencement of commercial flights will accelerate real estate development and infrastructure projects across the region. Key projects like the Atal Setu (MTHL), the Alibaug-Virar Multimodal Corridor, and the expansion of the Mumbai-Navi Mumbai Metro are enhancing connectivity. This improved network is boosting demand for both residential and luxury housing, transforming Navi Mumbai into a strategic hub that links Mumbai to the Pune Expressway and beyond.
- The Navi Mumbai International Airport (NMIA) is the primary catalyst for regional infrastructure growth.
- Major projects include the Atal Setu (Mumbai Trans Harbour Link) and the Alibaug-Virar Multimodal Corridor.
- Enhanced connectivity is driving demand in micro-markets and strategically connected locations like Khopoli.
Recent data indicates that India's status as a preferred investment destination remains fragile, with net Foreign Direct Investment (FDI) turning negative for three consecutive months ending October 2025. This shift is largely attributed to external pressures, specifically the announcement of significant tariffs by the U.S. administration. Despite domestic measures like corporate tax cuts and Production Linked Incentive (PLI) schemes, outflows by Indian companies investing abroad have increased. The Reserve Bank of India noted that trade uncertainty is driving foreign portfolio investors to exit Indian equities, highlighting the need for deeper structural reforms.
- Net FDI in India remained negative for three consecutive months as of October 2025.
- U.S. trade policies, including proposed 25% to 50% tariffs, have significantly impacted investor sentiment.
- Domestic reforms like PLI schemes and tax cuts have not fully insulated India from global economic headwinds.
Despite starting from similar levels in the 20th century, India's manufacturing sector has lagged behind China and South Korea. The share of manufacturing in India's GDP has remained relatively constant and recently lost ground to services. The article explores the 'Dutch disease' framework, suggesting that high government salaries and a booming services sector (like IT) have driven up economy-wide wages and caused real exchange rate appreciation. This makes Indian manufacturing less competitive against cheap imports. Additionally, a lack of technological upgrading and reliance on abundant cheap labor has led to stagnation.
- The 'Dutch disease' refers to how a windfall in one sector (like services) can negatively impact other sectors like manufacturing.
- High entry-level salaries in the software industry have drawn talent away from manufacturing.
- Indian manufacturing has failed to adopt adequate technological upgrades, relying instead on low-skilled labor.
The four new labour codes (2019 and 2020) aim to consolidate existing laws but face criticism for potentially undermining the rights of unorganised workers, who constitute 90% of India's workforce. The Occupational Safety, Health and Working Conditions (OSHWC) Code is criticized for removing specific safety rules previously present in the BOCW Act. Furthermore, the replacement of physical inspections with web-based systems is seen as a violation of ILO Convention 81. In states like Tamil Nadu, the new Social Security (SS) Code threatens existing sector-specific welfare boards that provide essential benefits to millions of manual workers.
- Unorganised workers contribute 65% of India's GDP but are largely excluded from the protections of the new codes.
- The OSHWC Code lacks specific safety mandates for hazardous sectors like construction, leading to higher accident risks.
- The transition to a centralized e-Shram system may lead to the dissolution of effective state-level welfare boards.
As the world transitions to clean energy, rare earth elements (REEs) have become critical for manufacturing high-performance permanent magnets used in EV motors and wind turbines. India has launched a ₹7,280-crore scheme to establish an integrated manufacturing ecosystem for 6,000 tonnes of sintered rare earth permanent magnets annually. This initiative aims to reduce import dependency, particularly on China, which currently dominates the global REE supply chain. The article emphasizes that India must balance industrial capacity with strict environmental compliance (green compliance) to ensure a sustainable and credible transition.
- Rare earth magnets (neodymium-iron-boron) are essential bottlenecks in the EV and wind energy sectors.
- India's monazite-bearing beach sands are a major domestic source of REEs but require complex processing and waste management.
- The National Critical Mineral Mission is tasked with exploration, but converting deposits into manufacturing capacity remains a challenge.
The article critiques the replacement of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with the Viksit Bharat-Guarantee and Ajeevika Mission (VB-G RAM G). MGNREGA, enacted in 2005, provided a legally enforceable, demand-driven right to employment. The new 2025 law shifts this to a supply-driven framework, giving the Centre authority over fund allocation and program operation. Critics argue this undermines the 'right to work' and reduces state autonomy. Furthermore, the funding ratio between the Centre and States has changed from 90:10 to 60:40, potentially placing a heavy financial burden on state governments.
- MGNREGA was a demand-driven scheme, whereas the new framework is supply-driven, centralizing control.
- The rebranding and restructuring are seen by some as a shift away from a rights-based welfare approach.
- The change in the funding ratio (60:40) may lead states to curtail project approvals due to fiscal constraints.
The Indian Space Research Organisation (ISRO) achieved a significant milestone by launching the BlueBird Block-2 satellite using the LVM3-M6 launch vehicle. This mission, launched from the Satish Dhawan Space Centre, marks ISRO's first dedicated commercial launch for a U.S. customer, AST SpaceMobile. The satellite, weighing 6,100 kg, is the heaviest payload ever launched by LVM3 from Indian soil. It features a 223-square-meter phased array, making it the largest commercial communications satellite in Low Earth Orbit (LEO). The mission aims to provide direct-to-mobile cellular broadband connectivity, enabling 4G/5G services globally.
- The LVM3 (Launch Vehicle Mark 3) demonstrated its heavy-lift capability and reliability for global commercial missions.
- BlueBird Block-2 is designed for direct-to-mobile connectivity, bypassing traditional ground-based cellular infrastructure.
- The satellite is part of a global LEO constellation intended to provide voice, video, and data services everywhere.