The Cabinet Committee on Economic Affairs (CCEA) has approved an increase in the Minimum Support Price (MSP) for copra for the 2026 market season. The MSP for milling copra has been set at ₹12,027 per quintal, an increase of ₹445. For ball copra, the price is fixed at ₹12,500 per quintal, up by ₹400 from the previous season. This decision aims to ensure fair returns to coconut growers and encourage production. The MSP is a key policy tool used by the government to protect farmers against sharp falls in agricultural prices.
- The CCEA approved the MSP hike for the 2026 market season.
- Milling copra MSP is now ₹12,027 per quintal.
- Ball copra MSP is now ₹12,500 per quintal.
The Union Labour and Employment Ministry clarified that Provident Fund (PF) contributions for employees with a monthly wage exceeding ₹15,000 are voluntary. This clarification comes under the new Code on Social Security, which replaces the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. While the statutory ceiling remains at ₹15,000, employers and employees can mutually agree to contribute on higher wages. The Ministry emphasized that the four new labor codes aim to ensure no reduction in take-home pay while balancing hiring costs for employers. The current wage limit has been in force since September 2014.
- PF contributions on wages above the ₹15,000 statutory ceiling are now voluntary.
- The Code on Social Security is one of four new labor codes consolidating 29 central laws.
- The ₹15,000 wage ceiling for EPFO coverage has been in effect since September 2014.
The International Monetary Fund (IMF) has assigned a 'C' grade to India's national accounts statistics, the second-lowest rating. The primary concern lies in the methodology used to calculate the informal/unorganized sector, which accounts for 30% of India's GDP. Currently, the government uses the organized sector as a proxy for the unorganized sector, an approach critics argue is unreliable during economic shocks like demonetization or the pandemic. While the Ministry of Statistics and Programme Implementation (MoSPI) is working on updating the GDP base year and methodology by February, experts suggest that resolving these data accuracy issues remains a significant challenge.
- The IMF gave India's national accounts statistics a 'C' grade, indicating significant data quality concerns.
- The unorganized sector contributes approximately 30% to India's GDP (excluding agriculture).
- Critics argue that using the organized sector as a proxy for the unorganized sector leads to overestimation.
India has entered into 20 regional or free trade agreements (FTAs), with recent pacts signed with the UK and EFTA. However, challenges remain as trade deficits with partners like ASEAN and Japan have widened due to structural issues and inadequate negotiation of non-tariff barriers. The article emphasizes the need for India to fast-track negotiations with the US and EU while internalizing lessons from past agreements. Future trade strategies must focus on carbon-intensive sectors, especially with the EU's Carbon Border Adjustment Mechanism (CBAM), and support exporters through better standards and infrastructure to ensure sustained gains.
- India currently has 20 regional or free trade agreements in place.
- Trade deficits with ASEAN widened from $10 billion in 2017 to nearly $44 billion by 2023.
- The EU's Carbon Border Adjustment Mechanism (CBAM) is a critical factor for future trade negotiations.
India's retail inflation, measured by the Consumer Price Index (CPI), rose marginally to 0.7% in November 2025 from a record low of 0.25% in October. Data released by the Ministry of Statistics and Programme Implementation (MoSPI) indicates that while food prices continued to contract, a slight acceleration in fuel inflation to 2.3% contributed to the overall rise. Despite the uptick, inflation remains significantly lower than historical averages. Categories like clothing and footwear saw easing inflation, while housing remained stable. The report highlights the impact of base effects and specific commodity price fluctuations like edible oils and vegetables.
- CPI data is released monthly by the Ministry of Statistics and Programme Implementation (MoSPI).
- Retail inflation in November 2025 stood at 0.7%, the second-lowest recorded in the current series.
- Fuel inflation rose to 2.3% in November, compared to 2% in the previous month.
The Department for Promotion of Industry and Internal Trade (DPIIT) is planning to amend the Copyright Act, 1957, to address challenges posed by Artificial Intelligence. A key proposal is a 'blanket licensing' framework, where AI firms would pay royalties to content publishers through a copyright society after commercializing their models. This aims to resolve tensions between AI developers who scrape internet data and publishers seeking compensation. However, tech industry bodies like Nasscom have expressed concerns, particularly regarding the burden of proof for copyright infringement in the age of generative AI. The proposal suggests a hybrid model for copyright jurisprudence.
- The proposed framework would allow AI developers to scrape content while ensuring eventual payment to publishers.
- A new copyright society, the 'Copyright Royalties Collective for AI Training' (CRCAT), would manage royalty distribution.
- Publishers argue they should have the right to opt out of data sharing for AI training.
The Indian rupee has recently fallen below ₹90 per dollar, sparking debate over its impact on the economy. Experts suggest the decline is driven by fundamental factors like a higher trade deficit, current account deficit, and FPI outflows, as well as external factors like U.S. tariff threats. While a weaker rupee can benefit exporters by making goods more competitive, it also increases the cost of imports, potentially fueling inflation. However, with robust foreign exchange reserves and a strong GDP growth rate, the current depreciation is viewed by some as a manageable transition rather than a structural crisis. The RBI continues to monitor volatility.
- The rupee's fall is partly due to expectations of higher U.S. tariffs and a shift in global investor sentiment.
- RBI intervention aims to check excess volatility rather than defend a specific exchange rate level.
- A 5% sustained depreciation could increase inflation by approximately 0.3-0.4%.
While India reported a robust 8.2% GDP growth rate, the International Monetary Fund (IMF) has assigned a 'Grade C' rating, highlighting structural weaknesses. The growth is driven by manufacturing (9.1%) and financial services (10.2%), but concerns remain regarding the sustainability of this momentum. The IMF points to issues like outdated base years for data, reliance on wholesale price indices, and discrepancies between production and expenditure data. Furthermore, the labor-intensive primary sector remains sluggish, and private consumption growth is relatively low. The RBI's Annual Report also acknowledges structural issues that could hinder long-term growth amidst global volatility and trade protectionism.
- India's GDP reached ₹48.63 lakh crore in a single quarter, showing strong post-pandemic momentum.
- The IMF's 'Grade C' rating indicates structural flaws and weak institutional capacity at the state level despite high growth.
- Manufacturing and services are the primary growth drivers, while agriculture lags at 3.5% growth.
The Department for Promotion of Industry and Internal Trade (DPIIT) reported that various Production Linked Incentive (PLI) schemes have attracted actual investments exceeding ₹1.88 lakh crore across 14 sectors as of June. These investments have led to incremental production and sales worth over ₹17 lakh crore and generated approximately 12.3 lakh jobs, including both direct and indirect employment. Exports from these sectors, particularly electronics, pharmaceuticals, and food processing, have surpassed ₹7.5 lakh crore. Additionally, the Startup India scheme has recognized over 2 lakh startups, contributing significantly to job creation and digital commerce growth through the Open Network for Digital Commerce.
- PLI schemes cover 14 key sectors to boost domestic manufacturing and global export competitiveness.
- Total investment has reached ₹1.88 lakh crore, resulting in significant incremental production and sales.
- The schemes have generated over 12.3 lakh jobs across various industrial sectors as of June.
A United Nations Development Programme (UNDP) report highlights that while AI investment is surging, it may exacerbate existing inequalities in the Asia-Pacific. The 'AI Preparedness Index' shows a massive gap, with advanced economies scoring over 70% while fragile states score under 20%. Disparities in digital infrastructure, such as electricity and data systems, prevent many from participating in the AI transition. Furthermore, women in the region face higher exposure to AI-driven automation than men. The report calls for inclusive design and robust foundations in hard infrastructure and human capital to ensure equitable benefits.
- The AI Preparedness Index reveals a stark divide between advanced economies and fragile states in the Asia-Pacific.
- Lack of basic infrastructure like reliable electricity and affordable internet remains a major barrier to AI adoption.
- Women are disproportionately affected by AI-driven automation compared to men in East and South-East Asia.
China recently approved the proposal for its 15th Five-Year Plan (2026-2030), emphasizing high-quality development and 'modern socialist country' goals. During the 14th Plan, China's economy grew at an average of 5.5%, reaching a GDP of approximately $20 trillion. The article, authored by a Chinese diplomat, suggests significant potential for cooperation with India in sectors like electronics, new energy, and AI. Despite geopolitical tensions, bilateral trade reached $138.46 billion in 2024. The piece advocates for synergy between the two emerging economies to enhance their positions in global value chains.
- China's 14th Five-Year Plan saw the economy reach a GDP of RMB 140 trillion (approx. $20 trillion).
- Bilateral trade between India and China reached $138.46 billion in 2024, with a significant year-on-year increase.
- The upcoming 15th Five-Year Plan focuses on high-quality development and opening up for international cooperation.
The 23rd India-Russia Summit in New Delhi marked a significant re-engineering of bilateral ties amidst global geopolitical shifts. A key outcome was the 'Programme for Development of Strategic Areas of India-Russia Economic Cooperation till 2030.' Both nations aim for a $100 billion trade target by 2030, focusing on non-energy sectors, fertilizers, and critical raw materials. The summit also emphasized energy security, maritime connectivity via the Chennai-Vladivostok Corridor, and defense cooperation. Despite the Ukraine conflict, the meeting signaled India's commitment to a multi-vector foreign policy and Russia's pivot toward Asian partnerships.
- India and Russia adopted a strategic economic cooperation programme valid until the year 2030.
- The bilateral trade target has been set at $100 billion to be achieved by 2030.
- New maritime initiatives include the Chennai-Vladivostok Maritime Corridor and cooperation in the Northern Sea Route.
The Reserve Bank of India's Monetary Policy Committee (MPC) recently cut interest rates by 25 basis points to 5.25%. This move follows a cumulative reduction of 125 basis points in the 2025 calendar year. The decision reflects an assessment of India's current economic growth, which accelerated to 8.2% in Q2, and the need to remain supportive despite potential global uncertainties like U.S. tariffs. While inflation is currently projected at a benign 2%, the MPC maintains a neutral stance to allow for quick policy pivots if food or oil prices trigger inflationary pressures.
- The MPC cut the repo rate by 25 basis points to reach 5.25%.
- India's GDP growth showed acceleration, reaching 8.2% in the second quarter of the year.
- The committee decided to retain a neutral stance to remain flexible against global economic uncertainties.
In the first week of December 2025, Foreign Portfolio Investors (FPIs) pulled out ₹11,820 crore from Indian equities. This trend is primarily attributed to the sharp depreciation of the Indian rupee. This follows a net outflow of ₹3,765 crore in November. While October saw a brief pause with inflows, the preceding months witnessed massive withdrawals. Total FPI outflows for the year 2025 have reached ₹1.55 lakh crore. This sustained selling pressure by foreign investors reflects global economic uncertainties and currency volatility affecting the Indian market.
- FPIs withdrew ₹11,820 crore in the first week of December 2025.
- The primary driver for the withdrawal is the depreciation of the Indian rupee.
- Total FPI outflow for the year 2025 stands at ₹1.55 lakh crore.
India is facing a demographic shift with a rapidly aging population, necessitating robust pension reforms. The article traces the transition from welfare-based assistance to participatory inclusion frameworks. Key schemes include the Indira Gandhi National Old Age Pension Scheme (IGNOAPS), the Atal Pension Yojana (APY) for the informal sector, and the National Pension System (NPS). Despite these initiatives, a significant portion of the elderly remains unaware of their eligibility. The e-SHRAM portal serves as a critical database for informal workers, but challenges like digital literacy and administrative hurdles persist in ensuring universal social security.
- India's elderly population is projected to reach 347 million by 2050.
- The Atal Pension Yojana (APY) provides a guaranteed minimum pension for informal sector workers aged 18-40.
- The e-SHRAM portal aims to integrate informal workers into the national social security framework.
President Vladimir Putin’s 30-hour visit to India, his first since the Ukraine invasion, focused heavily on economic cooperation and the 'Development of Strategic Areas of India – Russia Economic Cooperation till 2030.' Key outcomes include a 'Labour Mobility Agreement' to address Russia's workforce shortages and MoUs in the fertilizer and maritime sectors. While no major defense deals were announced, the visit reaffirmed the 'dhruva tara' (pole star) stability of the bilateral relationship. India maintained its 'strategic autonomy,' balancing ties with Russia while negotiating a free trade agreement with the U.S. and navigating Western sanctions.
- The visit prioritized economic roadmaps over new defense procurement or nuclear cooperation announcements.
- A Labour Mobility Agreement was signed to facilitate Indian skilled workers moving to Russia.
- India reiterated its stance on the Ukraine conflict, calling for peace and dialogue while maintaining neutrality.
Union Home and Cooperation Minister Amit Shah announced that implementing a circular economy model in the dairy sector will increase farmers' income by 20% over the next five years. Speaking at the inauguration of Banas Dairy’s bio-CNG and fertilizer plant in Gujarat, he emphasized generating extra income through waste-to-wealth initiatives. This includes producing biogas and organic fertilizer from cattle dung and harvesting leather from cattle that die naturally. The initiative aligns with the 'White Revolution 2.0' goals, providing dairies with the necessary finance and technology to adopt sustainable practices and diversify their product range.
- The circular economy model aims to increase dairy farmers' income by 20% by 2030.
- Waste products like cattle dung are being converted into bio-CNG and organic fertilizers.
- The initiative is part of the 'White Revolution 2.0' launched by the Prime Minister.
China is entering a new phase of its "rural revitalisation plan," aiming to address the stark divide between its ultra-modern cities and its rural countryside. Since 2012, the Chinese government has focused on "targeted poverty alleviation," lifting nearly 100 million people out of poverty. The strategy involves heavy investment in infrastructure (windmills, roads), promoting local industries like tea production, and inter-provincial cooperation where developed regions invest in poorer western provinces. By 2035, China aims to achieve "socialist modernisation," ensuring that rural areas share in the nation's economic prosperity through sustainable development and improved living standards.
- China's 'rural revitalisation plan' aims to tackle major rural issues by 2027 and achieve full modernisation by 2035.
- The 'targeted poverty alleviation' program focused on specific counties, using criteria to identify and support the most impoverished regions.
- Economic development in rural areas is driven by a mix of state-led investment, cooperative models, and the promotion of local agricultural products for global markets.
Parliament has approved the Central Excise (Amendment) Bill, 2025, which allows for the levy of excise duty on tobacco and related products. This move comes as the GST compensation cess is set to expire in December. Finance Minister Nirmala Sitharaman clarified that this is not an additional tax burden but a continuation of the existing tax structure under a different mechanism. Tobacco products will continue to be taxed at the 40% "demerit" category rate. The Bill ensures that the revenue stream from tobacco remains stable even after the transition away from the compensation cess regime.
- The Central Excise (Amendment) Bill, 2025, was passed to maintain tax levels on tobacco after the GST compensation cess ends.
- Tobacco remains in the highest GST slab of 40%, classified as a 'demerit' good.
- The transition ensures that the total tax burden on the consumer remains unchanged while shifting the collection mechanism.
Russian President Vladimir Putin's visit to India highlights the "tightrope walk" the Modi government must perform between its traditional ties with Russia and its growing partnerships with the West. Key discussion points include oil imports, which have surged since the Ukraine conflict, and defense cooperation, specifically the S-400 missile system. India faces potential sanctions under the U.S. CAATSA act. The visit also explores a labor mobility agreement for Indian workers and the development of the Eastern Maritime Corridor. The timing is significant as India prepares to host Western leaders for Republic Day and the EU-India summit.
- India's oil imports from Russia have grown from less than 2% to nearly 40% of its oil basket since the start of the Ukraine conflict.
- The S-400 air defense system deal remains a point of contention with the U.S., potentially triggering CAATSA sanctions.
- Both nations are working on a labor mobility agreement to provide jobs for Indian skilled and semi-skilled workers in Russia.
The Indian rupee depreciated to a record low of ₹90.15 against the US dollar. Experts attribute this decline to the delay in the U.S.-India trade deal and the Reserve Bank of India's (RBI) current strategy of less aggressive intervention compared to previous years. Foreign investors selling Indian stocks and moving to U.S., European, and Japanese markets have also created a flight of dollars. While a weaker rupee helps exporters by making Indian goods cheaper abroad, it increases the cost of imports, though the impact on the consumer price index is currently considered manageable by economists.
- The rupee breached the psychological barrier of ₹90 per dollar, closing at an all-time low of ₹90.15.
- Flight of capital from Indian equity markets to foreign markets is a major factor in the rupee's decline.
- The RBI has been less interventionist, selling fewer dollars from its reserves than in previous periods to arrest depreciation.
While India has reformed its mining laws to encourage exploration of critical minerals like lithium and cobalt, it lacks large-scale processing and refining capacity. Currently, most raw ores are sent abroad, primarily to China, for refining into battery-grade materials. The article suggests five steps: establishing Centres of Excellence for innovation, unlocking secondary resources from industrial waste like fly ash, upskilling the workforce in hydrometallurgy, de-risking investments through government off-take commitments, and pursuing 'mineral diplomacy' to acquire processing technology. Processing is the 'missing link' that determines if India remains a raw material supplier or becomes a clean energy leader.
- China controls over 90% of global rare earth and graphite refining, creating a significant supply chain vulnerability for India.
- India's Mines and Minerals (Development and Regulation) Act has been amended to support domestic mining through exploration licenses.
- Secondary sources like red mud from aluminum plants and fly ash from coal plants contain valuable rare earth elements.
Finland plans to hold roadshows across major Indian cities to highlight opportunities in the circular economy, ahead of India hosting the World Circular Economy Forum in 2026. The initiative aims to shift the focus from mere waste management to product design and production that extends product lifespans. Transitioning to a circular model could bring significant economic benefits, estimated at $4.5 trillion globally by 2030, and create millions of jobs in India. Finnish organizations like SITRA are emphasizing the business potential in closing the value chain and securing sustainable supply chains.
- India is set to host the World Circular Economy Forum in October 2026.
- The circular economy focuses on sustainable product lifecycles rather than just recycling and waste management.
- India's circular economy is projected to have a market value of $2 trillion and create 10 million jobs by 2050.
The latest Periodic Labour Force Survey (PLFS) for the July-September 2025 quarter reveals that the rural unemployment rate for persons aged 15 and above dropped to 4.4% from 4.8% in the previous quarter. Conversely, urban unemployment saw a slight increase, rising to 6.2% for males and 9.0% for females. The overall unemployment rate in India fell to 5.2% from 5.4%. The survey highlights that self-employment remains the dominant form of work in rural areas (62.8%), while regular wage or salaried employment is more common in urban centers (49.8%).
- Rural unemployment decreased due to seasonal agricultural operations during the July-September period.
- The overall Labour Force Participation Rate (LFPR) among females increased to 33.7%, driven largely by rural improvements.
- Agriculture remains the primary employer for the rural workforce, accounting for 57.7% of jobs.