The Karnataka State Cabinet has approved the 'Karnataka Menstrual Leave Policy-2025,' which grants one day of paid leave per month to women employees. This landmark decision makes Karnataka the first state in India to cover both the government and private sectors under such a policy. While Bihar and Odisha provide menstrual leave for government employees, and Kerala has implemented it in universities, Karnataka's policy is the most inclusive to date. The move is aimed at supporting women's health and promoting a more gender-sensitive work environment across the state.
- The policy provides one day of paid leave every month for menstruating employees.
- It is applicable to all women working in government offices and private companies in Karnataka.
- The decision follows recommendations to improve workplace participation and health outcomes for women.
India and the United Kingdom have finalized a £350-million defense agreement for the Indian Army to procure missiles. Additionally, both nations signed an Implementing Arrangement for a £250-million project to develop electric-powered engines for Naval ships. Prime Minister Narendra Modi and UK PM Keir Starmer described the partnership as a vital pillar of global stability. The deal is accompanied by significant economic commitments, with 64 Indian firms, including TVS Motor and Cyient, pledging to invest £1.3 billion in the UK, potentially creating 7,000 jobs. Furthermore, UK universities Lancaster and Surrey received approval to establish campuses in India.
- The deal establishes a broader complex weapons partnership between India and the UK.
- Collaboration on electric-powered engines for Naval ships marks a new milestone in maritime defense technology.
- Indian private sector investment in the UK is expanding across engineering, semiconductors, and e-mobility sectors.
As the global economy enters a period of uncertainty due to trade fluctuations and tariffs, the article emphasizes the need for Indian private capital to invest domestically. Despite record profits, private investment has not kept pace, with many firms looking toward foreign markets. The author argues that relying on external demand is risky and that the focus should shift to stimulating domestic demand and enhancing internal productivity. Furthermore, India's gross expenditure on R&D remains low at 0.64% of GDP, mostly funded by the government. A shift toward private sector-led innovation is crucial for long-term economic resilience.
- Private capital expenditure in India has remained sluggish despite high corporate profits and government incentives like PLI schemes.
- India's R&D spending is significantly lower than global peers (e.g., China at 2.1% of GDP), with the private sector contributing very little.
- The current global environment of 'de-globalisation' makes it imperative for Indian capital to unlock domestic wealth for local growth.
The World Bank has upgraded India's GDP growth outlook for the financial year 2025-26 to 6.5%, up from its previous estimate of 6.3%. This upgrade is attributed to resilient domestic conditions, strong private consumption, and the positive impact of GST reforms. However, the forecast for 2026-27 has been slightly lowered to 6.3% due to potential headwinds from U.S. tariffs on Indian exports. Despite global uncertainties, India is expected to remain the world's fastest-growing major economy. The report also noted that rural wage growth and agricultural output have performed better than expected.
- India's real GDP growth reached 7.8% in the April-June 2025 quarter, exceeding initial expectations.
- The World Bank credits GST reforms, including simplified compliance and reduced tax brackets, for supporting economic activity.
- Potential U.S. tariffs (up to 50%) on three-quarters of India's goods exports are a significant risk factor for future growth.
The Reserve Bank of India (RBI) is taking a measured approach to the rollout of its Central Bank Digital Currency (CBDC). Deputy Governor Rabi Sankar stated that the RBI is in no hurry for a full-scale retail launch and is waiting to see how other countries implement their digital currencies. The most immediate and appropriate use case for CBDC is identified as cross-border payments, which could significantly reduce costs and time. Additionally, the National Payments Corporation of India (NPCI) has unveiled biometric authentication for UPI payments, aiming to replace PINs with more secure and user-friendly fingerprint or face recognition.
- The RBI views cross-border payments as the primary use case for CBDC to enhance efficiency in international transactions.
- India is waiting for global standards and simultaneous launches by other nations before a full retail CBDC rollout.
- NPCI has introduced biometric authentication (fingerprint/face) for UPI to improve security and ease of use for senior citizens.
Recent changes in U.S. immigration policies, including a proposed $100,000 visa fee for new H-1B workers, are creating hurdles for international STEM talent, particularly from India. Data shows that while the U.S. IT sector has grown significantly, the growth of home-grown STEM talent has not kept pace with demand. Non-residents earn a disproportionately high number of STEM Master’s and Doctoral degrees in the U.S. As the U.S. tightens its borders, countries like China, the U.K., and Germany are actively vying for this talent. This shift could potentially lead to a 'brain drain' from the U.S., impacting its long-term technological edge.
- The U.S. relies heavily on foreign-born talent, with non-residents earning 55% of STEM Master’s degrees in 2020-21.
- Proposed high visa fees and restrictive policies may push skilled Indian professionals to look for opportunities in other countries.
- Computer and mathematical occupations in the U.S. grew by 40% between 2016 and 2024, far outstripping domestic talent supply.
India holds approximately 25,000 tonnes of gold in private hands, valued at $2.4 trillion, yet remains a major importer, contributing significantly to the trade deficit. The article advocates for a revitalized, trust-based gold monetisation scheme to unlock this 'under-the-pillow' wealth. By creating a transparent ecosystem with hallmarking centers and digital gold accounts, the government can mobilize domestic capital for infrastructure and innovation. This shift would reduce reliance on volatile foreign investment and external debt. Transforming gold from a passive asset into a productive economic tool is seen as essential for India's journey toward 'Atmanirbharta' (self-reliance).
- Indian households hold nearly $2.4 trillion worth of gold, which is larger than the total credit extended by Indian banks.
- Gold imports account for roughly 8% of India's total import bill, creating a persistent trade deficit.
- A successful gold monetisation scheme requires infrastructure for trusted valuation, seamless logistics, and tax-free incentives for depositors.
A recent Reserve Bank of India (RBI) paper reveals that Telangana has the highest per capita UPI transaction intensity in India. The study, using PhonePe data, shows a steady decline in ATM cash withdrawals as a percentage of GDP, indicating a shift toward digital payments. While high-value transactions are common, the growth of UPI for low-value, everyday transactions (P2M) is reflected in the rising share of peer-to-merchant payments. Regional intensity is highest in southern and western states, attributed to urban centers, economic hubs, and high levels of employment-driven migration, while northeastern states maintain higher cash demand.
- UPI transaction intensity is measured in per capita volume terms, with Telangana leading, followed by Karnataka and Andhra Pradesh.
- There is a clear inverse relationship between the rise of UPI usage and the demand for cash in the economy.
- Peer-to-merchant (P2M) transactions are increasingly dominating the volume share, especially for ticket sizes below ₹500.
India faces a critical window to leverage its demographic dividend, with the working-age population expected to peak around 2043. The Confederation of Indian Industry (CII) emphasizes treating employment as a national priority through an Integrated National Employment Policy. Key focus areas include bridging the gap between industry needs and graduate employability, supporting labor-intensive sectors like textiles and tourism, and formalizing the expanding gig economy. The article advocates for the timely implementation of the four Labour Codes and the creation of an urban employment guarantee program to address job distress in cities, ensuring sustainable and inclusive growth.
- India will add approximately 133 million people to its working-age population over the next 25 years.
- The gig economy currently employs 80 lakh to 1.8 crore workers and is projected to grow to 9 crore by 2030.
- There is a significant mismatch between college curricula and industry requirements, necessitating skill-aligned programs.
RBI Governor Sanjay Malhotra noted that while the global economy has shown surprising resilience against high U.S. tariffs and trade restrictions, risks remain. He warned that U.S. President Donald Trump’s restrictive trade policies could permanently damage growth in certain economies, as all risks have not yet been fully priced into the markets. Although the tangible effects on the real economy have been muted so far, the Governor emphasized that diverging growth trajectories across different nations might lead to global underperformance relative to true potential in the coming years.
- The RBI Governor highlighted that global growth has remained upbeat despite increasing trade uncertainties and high tariffs.
- There is a concern that restrictive trade policies could lead to permanent structural damage in specific vulnerable economies.
- The full impact of current trade tensions has not yet been reflected in market pricing or real economy metrics.
India's clean energy sector is growing rapidly, adding 24.5 GW of solar capacity in 2024, making it the third-largest contributor globally. However, a significant financial scaffolding gap exists. To align with a 1.5°C pathway, India requires approximately $1.5 trillion to $2.5 trillion by 2030. Current flows fall short of this target. The article suggests diversifying finance strategies through public finance, blended finance, and credit enhancement instruments like partial guarantees. Unlocking domestic institutional capital from entities like the LIC and EPFO, along with transparent carbon credit trading schemes, is essential to bridge the investment gap for renewables and green hydrogen.
- India added 24.5 GW of solar capacity in 2024, trailing only China and the United States in global contributions.
- The Ministry of Finance estimates a requirement of $2.5 trillion by 2030 to meet national climate targets and expand infrastructure.
- Blended finance and credit enhancement instruments are needed to make green projects more attractive to private lenders by improving risk-return profiles.
Finance Minister Nirmala Sitharaman, speaking at the Kautilya Economic Conclave, emphasized that innovations in cryptocurrency, particularly stablecoins, are fundamentally altering global money and capital flows. She stated that nations must adapt to these new monetary architectures or risk being excluded from the global financial system. While the RBI has lobbied for a ban on private virtual digital assets, it is simultaneously piloting its own Central Bank Digital Currency (CBDC). Stablecoins, which peg their value to assets like the dollar or gold, present unique regulatory challenges. India currently taxes crypto transactions but has not legalized them as regulated financial products.
- Stablecoins are crypto assets designed to maintain a stable value relative to a specific asset or pool of assets like the US dollar or gold.
- The Finance Minister highlighted that these shifts in monetary architecture force nations to make binary choices regarding adaptation or exclusion.
- Central Bank Digital Currencies (CBDCs) are issued by central banks and carry the same legal backing as official sovereign currency.
The Union Ministry of Textiles is expected to announce a revised Production Linked Incentive (PLI) scheme for the textile sector, specifically focusing on manmade fibre (MMF) and technical textiles. The revisions aim to make the scheme more flexible and industry-friendly. Proposed changes include adding new HSN codes for MMF apparel and fabrics and lowering investment thresholds. For instance, investment criteria may be revised to ₹150 crore and ₹50 crore for different parts of the scheme. These changes are intended to attract investments from Micro, Small, and Medium Enterprises (MSMEs) and boost growth in the sector.
- The PLI scheme for textiles is being updated to include more products under MMF and technical textiles categories.
- Lowering investment thresholds to ₹50 crore and ₹150 crore will help MSMEs participate in the scheme.
- The goal is to enhance India's competitiveness in the global textile market and drive growth in MMF.
As India's digital economy grows, cybercriminals are using sophisticated tactics like social engineering, phishing, and 'digital arrests' to defraud citizens. Vulnerable groups, including the elderly and rural populations, are primary targets. The article emphasizes that while technical skills are important, many frauds exploit human psychology. To counter this, the author suggests AI-powered proactive monitoring, real-time sharing of alerts across banks, and strengthening KYC norms. Banks must move from reactive firefighting to proactive prevention. A 24/7 rapid-response unit and international cooperation are essential to protect the integrity of the digital financial ecosystem.
- Cyber frauds have evolved from simple ATM withdrawals to complex social engineering and 'digital arrest' scams.
- AI and Machine Learning can be used for anomaly detection and real-time fraud prevention in banking systems.
- Strengthening KYC and implementing blockchain for secure customer data management are recommended for banks.
China has become the world leader in green hydrogen, reaching an annual production of 36.5 million tonnes. It dominates nearly 85% of the global manufacturing capacity for Alkaline electrolysers. Electrolysers are essential for producing green hydrogen by splitting water using renewable energy. While China benefits from state subsidies and integrated supply chains, other countries are implementing strict regulations and local content requirements to challenge this dominance. The two main technologies are Alkaline (ALK) and Proton Exchange Membrane (PEM) electrolysers. China's dominance in ALK electrolysers is driven by lower costs compared to Western counterparts.
- China controls 85% of the global manufacturing capacity for Alkaline (ALK) electrolysers.
- Green hydrogen is produced using renewable energy, making it a key tool for global decarbonization efforts.
- PEM electrolysers are more efficient for fluctuating energy loads but are currently more expensive than ALK types.
The Anusandhan National Research Foundation (ANRF), India’s newest science funding agency, has developed 'SARAL' (Simplified and Automated Research Amplification and Learning). This AI-powered tool generates layperson summaries, videos, and posters from complex scientific research papers to make science more accessible. The ANRF, which absorbed the Science and Engineering Research Board (SERB), acts as a single-window clearance mechanism for research funding. It aims to provide low-interest, long-tenure loans to private companies for R&D. The foundation expects to receive 70% of its budget from private sources to foster 'deep tech' products.
- SARAL uses AI to translate complex research into accessible formats like summaries and videos for the general public.
- ANRF is the primary body for funding scientific research in India, replacing the erstwhile SERB.
- The foundation focuses on deep science, engineering, and 'deep tech' startups to create high-value products.
Chief Minister M.K. Stalin outlines Tamil Nadu's strategy to foster a startup revolution. The state has seen a six-fold increase in registered startups, reaching over 12,100 in four years. The strategy rests on three pillars: making the state a strategic capital through the TANSEED grant, ensuring inclusion and gender parity through specialized funds for SC/ST and women entrepreneurs, and building a decentralized ecosystem with regional hubs. Tamil Nadu has been recognized as a 'Best Performer' in the States' Startup Ranking 2022. The upcoming Global Startup Summit 2025 in Coimbatore aims to further this momentum.
- Tamil Nadu has over 12,100 DPIIT-registered startups, a six-fold increase in four years.
- The TANSEED grant provides seed funding of ₹10 lakh to startups to facilitate early-stage growth.
- The state focuses on inclusive growth through the SC/ST Startup Fund and special grants for women and transgender founders.
Foreign Portfolio Investors (FPIs) have been net sellers in the Indian stock market for three consecutive months as of late 2024. In September 2024 alone, FPIs withdrew ₹23,885 crore. Analysts attribute this trend to disproportionately high valuations of Indian stocks, dull corporate earnings, and global uncertainties such as US tariff policies. Furthermore, there is a notable shift of funds towards the Chinese market, which is seen as having more attractive valuations. The weakening rupee against the dollar has also reduced the attractiveness of dollar returns from Indian equities, leading to cautious sentiment among global fund managers.
- FPIs have pulled out approximately ₹1.54 lakh crore from Indian equities between January and September 2025.
- High valuations and stagnant corporate earnings have made Indian stocks less attractive compared to emerging peers like China.
- Global emerging market managers have cut India's allocation to 16.7%, the lowest since late 2023.
While India's Female Labour Force Participation Rate (FLFPR) has risen significantly, reaching 41.7% in 2023-24, a closer look reveals underlying vulnerabilities. The increase is primarily driven by rural women entering the workforce as 'helpers in household enterprises' or in self-employment, rather than regular salaried jobs. Much of this work is unpaid or low-paying, and real earnings for most categories of women workers have actually declined or stagnated. This suggests that while more women are entering the labor market, they are often doing so out of economic necessity into poor-quality, informal roles rather than dynamic, remunerative employment.
- FLFPR rose from 23.3% in 2017-18 to 41.7% in 2023-24, largely driven by rural women.
- The shift is characterized by a move from 'attending domestic duties' to 'unpaid helper' roles in family businesses.
- Real wages for regular salaried and self-employed women in rural areas have seen a downward trend despite higher participation.
The Union Commerce Ministry informed the Public Accounts Committee (PAC) that higher tariffs imposed by the U.S. will have a significant long-term impact on Indian exports, particularly the marine sector. Shrimp exports are especially vulnerable, facing effective levies exceeding 58% when combined with existing duties. To mitigate this, the government is working on market diversification, pushing for the registration of more export units in the EU and engaging with other countries like Russia. The PAC also reviewed the 'Performance Audit' of the Export Promotion Capital Goods (EPCG) Scheme, questioning its effectiveness in boosting manufacturing growth.
- U.S. tariffs on Indian shrimp exports have reached an effective levy of over 58%.
- The Commerce Ministry is seeking to diversify export markets to the EU and Russia to reduce dependence on the U.S.
- The Public Accounts Committee (PAC) is reviewing the Export Promotion Capital Goods (EPCG) Scheme.
Despite government efforts to promote formal e-waste recycling through the Extended Producer Responsibility (EPR) framework, the informal sector continues to play a dominant role. Millions of tons of electronics are disposed of annually, but only about one-third is processed through proper channels. The informal sector often harvests components for repair rather than recycling, which disrupts the 'circular economy' and leads to environmental hazards. Policymakers face a dilemma as informal set-ups provide livelihoods but lack the technology for safe metal extraction. Strengthening the EPR framework and improving material traceability are essential to secure critical minerals like lithium and cobalt.
- India generated approximately 4.17 million metric tonnes of e-waste in 2022, but only a third is processed formally.
- The Extended Producer Responsibility (EPR) framework requires manufacturers to collect and recycle their end-of-life products.
- Informal recyclers often prioritize component harvesting for repairs over the extraction of precious metals.
The Indian government has announced the development of two railway links connecting India and Bhutan: the Kokrajhar-Gelephu line (Assam) and the Banarhat-Samtse line (West Bengal). Spanning a total of 89 km and costing ₹4,033 crore, these projects aim to boost the Bhutanese economy, tourism, and people-to-people movement. India is Bhutan's largest trading partner, and these links will provide Bhutanese goods better access to the global market via the Indian railway network. This initiative is part of a broader strategic partnership, including hydropower projects and development assistance under India's 13th Five-Year Plan.
- The Kokrajhar-Gelephu and Banarhat-Samtse lines will be the first rail connectivity projects between India and Bhutan.
- The projects are designed to support Vande Bharat trains and will include major bridges and viaducts.
- India has pledged ₹10,000 crore in development assistance to Bhutan for its 13th Five-Year Plan (2024-2029).
Women's participation in Indian agriculture has surged, with nearly two out of every three working women now engaged in the sector. However, this 'feminisation of agriculture' is marked by significant challenges: nearly half of these women are unpaid family workers, and they often lack official recognition as farmers. This invisibility prevents them from accessing credit, land ownership, and government subsidies. While global trade trends and digital tools like e-NAM offer opportunities for income-generating entrepreneurship, structural barriers like low digital literacy and limited land rights persist. Policies must recognize women as independent farmers to ensure equitable growth.
- Women's employment in agriculture surged by 135% over eight years, now accounting for over 42% of the sector's workforce.
- Approximately 59.1 million women in the agriculture sector are classified as unpaid family workers as of 2023-24.
- Only 13-14% of women in agriculture are official landholders, limiting their access to institutional credit and insurance.
South-South and Triangular Cooperation (SSTC) has emerged as a vital complement to traditional aid, focusing on solidarity, mutual respect, and shared learning among developing nations. India has taken a leadership role, championing SSTC through initiatives like the India-UN Development Partnership Fund and the Voice of the Global South Summits. By sharing digital public infrastructure (Aadhaar, UPI) and cost-effective innovations in climate resilience and health, India is helping other nations achieve the 2030 Agenda for Sustainable Development. SSTC offers better returns on investment and is crucial as funding for traditional humanitarian sectors declines.
- SSTC is based on the 1978 Buenos Aires Plan of Action (BAPA) for technical cooperation among developing nations.
- India promotes its digital public infrastructure (DPI) models, like UPI and Aadhaar, as scalable solutions for the Global South.
- The India-UN Development Partnership Fund has financed 75 projects across 56 developing countries since 2017.