NITI Aayog has released a report titled 'Internationalisation of Higher Education in India,' proposing a roadmap to attract foreign students and faculty. Key recommendations include setting up a $10-billion 'Bharat Vidya Kosh' (national research sovereign wealth fund), establishing 'Vishwa Bandhu' scholarships, and easing regulations for international campuses in India. The report aims to address the 'imbalance' where 28 Indian students go abroad for every one international student coming to India. It also suggests updating NIRF rankings and aligning with the National Education Policy (NEP) 2020.
- A $10-billion Bharat Vidya Kosh is proposed for research, with 50% funding expected from the diaspora.
- The 'Vishwa Bandhu' scheme aims to attract international talent through dedicated scholarships and fellowships.
- India aims to host nearly 7.89 lakh international students by 2047 to become a global education hub.
Himachal Pradesh is advocating for increased financial support from the 16th Finance Commission to compensate for the 'disproportionate burden' of preserving its vital forest cover. The state argues that its forests provide essential ecosystem services like carbon sequestration, water provision, and flood control, valued at billions of rupees, which benefit the entire country. While previous Finance Commissions (12th to 15th) introduced 'forest cover' as a criterion for horizontal tax devolution, Himachal seeks a more robust methodology that accounts for different forest types and the high costs of mountain-state development.
- Himachal Pradesh's forest wealth is estimated at ₹9.95 lakh crore in terms of ecosystem services.
- The state wants the 16th Finance Commission to increase the weightage of 'forest cover and ecology' in tax devolution.
- Current formulas are criticized for only using dense forest data, ignoring other critical ecological values.
The Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) Act (VB-G RAM G), 2025, has replaced the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Critics argue this marks a shift from a 'demand-driven' right to a 'command-driven' centrally sponsored model. The new Act changes the funding ratio from 90:10 to 60:40 (Centre:State) for some states and removes the Union government's obligation to pay compensation for wage delays. While it claims to provide 125 days of employment, concerns remain regarding funding adequacy and the loss of local autonomy for panchayat institutions.
- VB-G RAM G Act, 2025 replaces the MGNREGA framework as the primary rural job guarantee scheme.
- The funding pattern for several states has been altered from 90:10 to a 60:40 Centre-State ratio.
- The new Act removes the central government's legal obligation to pay for wage delay compensation.
India and New Zealand have concluded discussions on a Free Trade Agreement (FTA) aimed at doubling bilateral trade to $5 billion within five years. The deal provides India with tariff-free access to New Zealand's markets and includes an FDI commitment of $20 billion over 15 years. New Zealand will grant 5,000 temporary work visas annually for Indian professionals in sectors like IT, healthcare, and education. While 95% of New Zealand's exports will see tariff cuts, India has protected sensitive sectors like dairy and certain agricultural products like rice and wheat to safeguard domestic farmers.
- The FTA aims to double bilateral trade from current levels to $5 billion within five years.
- India secured 5,000 annual work visas for professionals including yoga instructors, chefs, and healthcare workers.
- Sensitive agricultural sectors like dairy, rice, wheat, and soya are excluded from tariff concessions to protect Indian farmers.
India is currently Africa’s fourth-largest trading partner, with bilateral trade reaching nearly $100 billion in FY24. However, China remains the leader with over $200 billion in trade. To bridge this gap, a five-point strategy is proposed: removing trade barriers via preferential trade agreements, moving to high-value manufacturing, scaling up Lines of Credit for MSMEs, lowering freight costs through port modernization, and expanding digital and service trade. India aims to double its trade with Africa by 2030, leveraging its strengths in IT, healthcare, and professional services to build sustainable long-term partnerships.
- India's bilateral trade with Africa reached nearly $100 billion in FY24, with exports totaling $38.17 billion.
- Major exports to Africa include petroleum products, engineering goods, pharmaceuticals, rice, and textiles.
- The African Continental Free Trade Area (AfCFTA) presents a significant opportunity for Indian exporters to access a unified market.
The winter session of Parliament concluded after 15 sittings, marked by the 150th anniversary of the national song, Vande Mataram. Ten Bills were introduced and eight were passed, including significant legislation allowing 100% FDI in the insurance sector and facilitating private investment in nuclear power by reducing supplier liability. The session also saw the passage of the VB-G RAM G Bill. While the session was less acrimonious than previous ones, debates occurred regarding electoral reforms and the naming of Bills in Hindi, which caused concern among representatives from non-Hindi speaking regions.
- The session commemorated the 150th anniversary of the national song, Vande Mataram, through various discussions.
- Significant legislative changes include allowing 100% Foreign Direct Investment (FDI) in the insurance sector via the 'Sabka Bima Sabki Raksha' Bill.
- Parliament facilitated private sector investment in nuclear power by reducing the liability of suppliers.
The Central Board of Directors of the Reserve Bank of India (RBI) has approved a risk-based deposit insurance framework for banks. This new model will replace the current flat-rate premium system, where all banks pay the same rate regardless of their risk profile. Under the new framework, banks with sounder financial health and lower risk will likely pay lower premiums. This move is intended to incentivize better risk management within the banking sector. The framework is expected to become effective from the next financial year, with detailed notifications to be issued shortly.
- The RBI is transitioning from a flat-rate premium to a risk-based premium for deposit insurance.
- Financially sound banks will benefit from lower premium payments under the new system.
- The framework aims to strengthen the banking system by encouraging better risk assessment and management.
Minutes from the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) reveal concerns that "too low" an inflation rate could be detrimental to India's developing economy. Headline CPI inflation dropped to 0.3% in October 2025, primarily due to falling food prices. While low inflation is generally seen as positive, MPC members warned it could squeeze profit margins, increase the real value of debt, and deter private sector investment. The current rate has breached the lower bound of the flexible inflation targeting regime (4% +/- 2%), suggesting a potential demand deficit that needs monitoring.
- Headline CPI inflation fell to 0.3% in October 2025, significantly below the RBI's 4% target.
- Low inflation can increase the real interest rates for the private sector, potentially dampening investment.
- The MPC recently reduced the repo rate by 25 basis points to support economic growth.
The Supreme Court of India has ruled that Corporate Social Responsibility (CSR) inherently includes environmental responsibility. Interpreting Article 51A(g) of the Constitution, the Court held that corporations, as legal persons, have a fundamental duty to protect and improve the natural environment. The judgment, delivered in a case concerning the Great Indian Bustard, emphasizes that CSR is a constitutional obligation rather than a voluntary act of charity. Consequently, companies operating near sensitive habitats must prioritize conservation efforts and adhere to the 'polluter pays' principle. This ruling mandates that CSR funds be directed toward both in-situ and ex-situ conservation to prevent species extinction.
- The Supreme Court linked Corporate Social Responsibility (CSR) to the fundamental duty under Article 51A(g).
- Corporations are now legally recognized as having a duty to protect forests, lakes, rivers, and wildlife.
- The ruling specifies that CSR funds should be directed toward in-situ and ex-situ conservation of endangered species.
India aims to become a developed nation by 2047, a goal that necessitates robust strategic capabilities and a self-reliant defence industrial base. Historically, the sector faced restrictive policies and high import dependency. Recent reforms, including private sector participation, FDI liberalization, and the corporatization of the Ordnance Factory Board, have led to exponential growth in exports, now reaching over 80 countries. To sustain this, India needs to simplify regulatory procedures for MSMEs, overhaul financial frameworks, and shift the DRDO's focus toward frontier research while allowing the private sector to handle large-scale production and commercialization.
- India's defence exports have grown exponentially and now reach more than 80 countries globally.
- The corporatization of the Ordnance Factory Board and liberalized FDI norms have been pivotal in sector reforms.
- A dedicated export facilitation agency is proposed to provide a single-window interface for global partners.
Finance Minister Nirmala Sitharaman introduced the Securities Market Code Bill 2025 in the Lok Sabha, which seeks to consolidate three major laws: the SEBI Act (1992), the SCRA (1956), and the Depositories Act (1996). The Bill aims to provide a modern regulatory framework, rationalize existing provisions, and facilitate the ease of doing business. Key proposals include increasing SEBI board members to 15 and decriminalizing minor technical violations, replacing them with civil penalties. The Bill has been referred to the Standing Committee on Finance for further review.
- The Bill consolidates the SEBI Act 1992, Securities Contracts (Regulation) Act 1956, and Depositories Act 1996.
- It proposes increasing the number of SEBI members from nine to 15, including the Chairperson.
- Minor and procedural violations will be decriminalized and shifted to a civil penalty framework.
India's merchandise exports grew by 19.4% to $38.1 billion in November 2025, the highest in a decade for that month. Exports to the U.S. rose by 22.6% despite 50% tariffs, as exporters absorbed costs to maintain market share. Simultaneously, imports fell by 1.9% to $62.7 billion, leading to a narrowed trade deficit. However, experts warn of 'deeper distress' as high tariffs and a depreciating rupee impact MSMEs. The government is considering relief measures like credit guarantees to support exporters facing global headwinds and shifting supply chains.
- Merchandise exports reached $38.1 billion in November 2025, a 19.4% year-on-year growth.
- The trade deficit shrank as imports fell to $62.7 billion, though this may indicate slackening domestic demand.
- Exporters to the U.S. are currently absorbing the impact of 50% tariffs, which is unsustainable for the MSME sector.
India and Oman have signed a Comprehensive Economic Partnership Agreement (CEPA), marking Oman's first bilateral trade deal since 2006 and India's second with a GCC nation. Under this pact, Oman will provide duty-free access to 98.08% of its tariff lines, covering over 99% of Indian exports by value. Conversely, India offers liberalized tariffs on 77.79% of its lines. The agreement aims to boost labor-intensive sectors like MSMEs, textiles, and electronics while serving as a strategic gateway for India into the GCC, East Europe, and Africa.
- The CEPA provides India duty-free access to nearly 99.38% of its exports to Oman by value.
- It is the first bilateral agreement Oman has signed with any country since its 2006 deal with the U.S.
- The deal is expected to significantly benefit labor-intensive sectors, MSMEs, and women-led enterprises.
The Rajya Sabha passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, which allows 100% Foreign Direct Investment (FDI) in the insurance sector. Finance Minister Nirmala Sitharaman stated that this move would attract more foreign capital, especially where domestic joint venture partners are unavailable. The Bill also allows for the merger of non-insurance and insurance companies and mandates data collection in compliance with the Digital Personal Data Protection Act. Additionally, the House passed the Repealing and Amending Bill, which annuls 71 obsolete laws, including the Indian Tramways Act, 1886, to improve the ease of doing business.
- The Bill increases the FDI limit in the insurance sector from the previous cap to 100%.
- It aims to increase insurance penetration and competition, potentially lowering premiums for consumers.
- The legislation allows for the merger of different types of insurance entities (life and non-life).
Indian student migration has evolved from an elite phenomenon to a mass middle-class aspiration, with over 13.35 lakh students enrolled abroad in 2024. The US, Canada, UK, and Australia remain top destinations. However, this trend is increasingly characterized by 'reverse remittance,' where Indian households subsidize foreign economies through high fees and living costs, often funded by debt. Many students end up in low-tier institutions or unskilled jobs due to restrictive visa rules and lack of placement support. The article highlights the need for better regulation, pre-departure counseling, and bilateral frameworks to protect students from exploitation.
- India is a top sender of international students, with numbers projected to reach 13.8 lakh in 2025.
- 'Reverse remittance' occurs when Indian families mortgage assets to fund education abroad, often leading to debt traps.
- Many students face 'deskilling,' where they transition from potential skilled workers to low-wage unskilled laborers abroad.
The Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin), or VB-GRAM G Bill, was tabled in the Lok Sabha to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The Bill changes the scheme's character from a demand-based to a supply-driven framework with capped allocations. A significant shift is the funding pattern, moving from the Centre bearing the full cost of unskilled wages to a 60:40 sharing ratio between the Centre and States. Critics argue this undermines the special status of the scheme and places a heavy financial burden on states already struggling with GST restructuring.
- The VB-GRAM G Bill transforms MGNREGS from a demand-based legal guarantee to a supply-driven scheme.
- Funding for unskilled manual labor wages will shift from 100% Central funding to a 60:40 Centre-State split.
- The Union government becomes the sole decision-maker, potentially reducing the development space for States.
The Lok Sabha has passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025. This landmark legislation aims to incentivize private sector participation, both domestic and foreign, in nuclear power production. It repeals existing restrictive legislation to open up the civil nuclear sector. Key provisions include enabling private companies to run nuclear plants, limiting operator liability to plant capacity, and ensuring the government retains control over nuclear waste management. The Bill also removes clauses holding equipment suppliers responsible for failures, a move that has faced significant opposition from several political parties.
- The SHANTI Bill allows private and foreign companies to participate in India's civil nuclear energy production.
- It shifts the responsibility of managing nuclear plants to the 'operator' of the facility.
- Operator liability is now limited to the specific capacity of the nuclear plants rather than unlimited.
The Lok Sabha has passed a landmark Bill to raise the Foreign Direct Investment (FDI) limit in the insurance sector from 74% to 100%. This move aims to facilitate further capital infusion, introduce better technology, and improve insurance products. The Bill also empowers the insurance regulator, IRDAI, to disgorge wrongful gains from insurers and intermediaries. Additionally, it increases the maximum penalty on intermediaries from ₹1 crore to ₹10 crore to ensure legal compliance. The reform is expected to invite more global reinsurers to India and strengthen the public sector insurance companies.
- FDI in the insurance sector has been increased from 74% to 100% to boost capital and technology.
- IRDAI is now empowered to disgorge wrongful gains and impose higher penalties for non-compliance.
- The maximum penalty on insurance intermediaries has been increased to ₹10 crore.
The Indian rupee hit a new lifetime low, depreciating beyond the 91 mark to 91.14 against the U.S. dollar. This makes it the weakest major currency globally this year and the weakest in Asia for 2025. Factors driving this pressure include uncertainty over the India-U.S. trade deal, global macro conditions, and significant capital outflows by foreign portfolio investors. Experts suggest the RBI may be allowing some depreciation to support export competitiveness, given that India's growth remains strong and inflation is contained.
- The rupee depreciated to a record low of 91.14 against the USD during intraday trade.
- It is currently the weakest Asian currency in 2025 due to trade uncertainties and capital outflows.
- Foreign portfolio investors (FPIs) pulled out nearly $2.7 billion in the first two weeks of December.
The Indian government has introduced the SHANTI Bill to overhaul civil nuclear facilities' operation and construction. Aiming for 100 GW of nuclear capacity by 2047, the Bill allows domestic private capital to participate in nuclear energy activities, previously restricted to government entities. While it aims to reduce transaction costs and clarify legal ambiguities for new entrants, concerns remain regarding the liability framework and the independence of the regulator. The Bill keeps sensitive fuel cycles under state control but opens up plant delivery and supply chains to private players to mobilize large-scale capital.
- The government targets 100 GW of nuclear capacity by 2047, including five indigenous small modular reactors by 2033.
- The SHANTI Bill allows domestic private capital to build and operate civil nuclear facilities through licenses.
- Sensitive fuel cycles will remain under state control to prevent nuclear proliferation.
Ethiopia, a pivotal power in the Horn of Africa and headquarters of the African Union, presents a significant opportunity for India to expand its regional footprint. Historically linked through education and the Pan-African e-Network, the relationship is evolving toward strategic investment in pharmaceuticals, mining, and renewables. As a new member of BRICS, Ethiopia offers India a gateway to the African Continental Free Trade Area (AfCFTA). Strengthening bilateral agreements like the Double Taxation Avoidance Agreement (DTAA) and increasing defense cooperation are essential steps to solidify this partnership in a rapidly changing global economy.
- Ethiopia is one of Africa's fastest-growing economies and serves as the headquarters for the African Union.
- India has been a long-term partner in Ethiopia's education sector and the pilot for the Pan-African e-Network project.
- New opportunities for cooperation exist in mining (gold, critical minerals) and renewable energy (hydropower).
Retail inflation in November 2025 dropped to a near-record low of 0.7%, primarily driven by a high statistical base effect from the previous year. While the Monetary Policy Committee (MPC) recently reduced interest rates to 5.25%, experts suggest a pause in February 2026. The current Consumer Price Index (CPI) is heavily skewed, with food and beverages accounting for nearly 46% of the weightage. A new CPI series with a 2024 base year is expected in 2026-27, which will re-index consumption behavior and reduce the disproportionate impact of food prices on overall inflation data.
- The statistical base effect from high inflation in late 2024 is currently keeping 2025 inflation figures abnormally low.
- Food and beverages currently hold a 46% weightage in the CPI, causing high volatility in inflation readings.
- The government plans to update the CPI base year from 2012 to 2024 to better reflect modern Indian consumption patterns.
Jammu and Kashmir Chief Minister Omar Abdullah inaugurated Asia’s longest ski drag lift and a rotating conference hall at Gulmarg to enhance the region's winter tourism profile. The ski drag lift, measuring 726 metres, is located at Kongdori, while the rotating hall is situated at an altitude of 4,390 metres at Apharwat. These projects, part of a larger ₹17 crore infrastructure push, aim to position Gulmarg as a premier global winter sports destination. The initiatives are designed to create year-round tourism opportunities, generate local employment, and elevate the site to international standards while ensuring ecological conservation.
- Gulmarg now hosts Asia’s longest ski drag lift, measuring 726 metres, at Kongdori.
- A new rotating conference hall has been built at Apharwat, one of the highest altitudes for such a facility.
- The infrastructure investment is intended to attract international tourists and support events like the Khelo India Winter Games.
Megha Engineering and Infrastructures Ltd (MEIL) has threatened to withdraw from the 850-MW Rattle Hydroelectric Project in Jammu and Kashmir's Kishtwar district due to persistent threats and political interference. The project, a run-of-the-river scheme on the Chenab River, was approved in 2021 with a budget of ₹5,281.94 crore and a completion target of May 2026. MEIL alleges that local politicians are pressuring the firm to hire additional local staff despite no vacancies, leading to security concerns for workers. The project is critical for regional power generation and currently employs over 1,400 workers.
- The Rattle Hydroelectric Project is an 850-MW run-of-the-river scheme located on the Chenab River in Kishtwar.
- MEIL, the executing firm, cites 'undemocratic' pressure from local politicians regarding hiring practices as a major hurdle.
- The project involves a 133-metre high dam and underground electricity generation facilities.