India faces a paradox where 43% of STEM graduates are women, the highest globally, yet women constitute only 27% of the STEM workforce. This education-employment gap, driven by persistent social norms and unwelcoming workplaces, limits women's access to career opportunities. The article highlights that enabling more women in the workforce could significantly boost India's GDP. Government policies like NEP 2020 and increased gender budget allocation aim to improve women's economic mobility. However, industry must transition from passive recruiters to active enablers, addressing stereotypes and providing supportive environments, as exemplified by initiatives like UN Women's WeSTEM programme.
- India has the highest proportion of women STEM graduates globally (43%), but only 27% are in the STEM workforce.
- This significant education-employment gap is attributed to social norms, workplace environments, and lack of awareness about career opportunities.
- Increasing women's participation in the workforce could substantially boost India's GDP, with estimates up to $700 billion by 2025.
The article argues for a stronger India-Europe relationship, rooted in shared values and strategic compulsions, to foster a multipolar, stable, and equitable world amidst global disorder. Both India and Europe, as aspirational middle powers, are expanding dialogue in trade, technology, security, and climate change. Economic ties are growing, with EU FDI in India increasing by 70% between 2015-2022. The article emphasizes fast-tracking trade agreements, reinterpreting the Carbon Border Adjustment Mechanism, and leveraging the India-Middle East-Europe Economic Corridor (IMEC). It also highlights cooperation in digital architecture, clean energy, biotechnology, and defense, stressing the need for human mobility and political will to address issues like terrorism.
- India and Europe are urged to strengthen their partnership as aspirational middle powers to promote a multipolar world order.
- Bilateral engagement is expanding across trade, technology, security, and climate change, with significant growth in EU FDI in India.
- Fast-tracking India-EU Trade and Investment Agreements and reinterpreting the Carbon Border Adjustment Mechanism are crucial.
Canada is seeking new economic partners after the U.S. imposed a 35% tariff on Canadian imports, despite Ottawa rescinding a digital services tax. This move by the U.S., driven by a trade surplus in Canada's favour, has forced Canada to diversify its foreign and economic policy, similar to how Nepal recalibrated its strategy after India closed land ports a decade ago. Nepal's reliance on Indian ports and subsequent economic collapse led it to join China's Belt and Road Initiative, much to India's dismay. The article suggests the U.S. should learn from this history, as losing a close ally like Canada over trade imbalances could have significant repercussions.
- The U.S. imposed a 35% tariff on Canadian imports, despite Canada rescinding its digital services tax.
- This U.S. action, driven by a trade surplus in Canada's favor, has prompted Canada to seek new economic partners.
- The situation is compared to India's blockade of Nepal a decade ago, which forced Nepal to align with China.
Retail inflation in India eased to a 77-month low of 2.1% in June, down from 2.82% in May, primarily driven by falling food prices for the eighth consecutive month. Wholesale inflation also contracted after 20 months, with crude oil prices further contributing to the decline. The Consumer Price Index (CPI) showed the food and beverages category contracted by 0.2% in June, a significant drop from 8.4% in June 2024. Key items like vegetables, pulses, spices, and meat experienced deflation. This trend is expected to continue, supported by healthy agricultural activity and a favourable base.
- Retail inflation reached a 77-month low of 2.1% in June, primarily due to easing food prices.
- Wholesale Price Index (WPI) also contracted after 20 months, influenced by falling food and crude oil prices.
- The food and beverages category within CPI saw a contraction of 0.2% in June, marking the eighth consecutive month of easing food inflation.
The 17th BRICS Summit in Rio de Janeiro highlighted the bloc's role as a voice for the Global South, aiming to transform a Western-dominated world order through South-South cooperation. BRICS, now an intergovernmental organization, comprises 35% of the global economy and nearly half the world's population, surpassing the G7. It seeks to foster economic, political, and social cooperation, advocating for greater representation in global governance and reducing reliance on the U.S. dollar. Despite its potential, the bloc faces challenges from internal divisions, differing national priorities, and external pressures from Western powers, including threats of tariffs. India's role as a bridge-builder is complicated by border tensions with China.
- BRICS serves as a significant institutional expression of Global South aspirations, aiming to challenge Western hegemony and promote South-South cooperation.
- The bloc has grown to represent 35% of the global economy and nearly half the world's population, surpassing the G7's economic share.
- Key objectives include fostering economic, political, and social cooperation, advocating for global governance reforms, and reducing reliance on the U.S. dollar.
A recent World Bank report suggesting low and falling consumption inequality in India has sparked debate, with commentators arguing it doesn't reflect the true picture of income and wealth disparities. While consumption inequality may be lower, income and wealth inequality in India are extremely high and have increased over time. Researchers from the World Inequality Database (WID) indicate India's Gini coefficient for pre-tax income in 2022-23 was 0.61, making it one of the most unequal economies globally. For wealth, the Gini coefficient was 0.75, with the top 1% of adults controlling almost 40% of net personal wealth, highlighting extreme concentration.
- The World Bank's assessment of low consumption inequality in India is contested by experts who point to high income and wealth disparities.
- Consumption inequality is inherently lower than income or wealth inequality because poorer households spend most income, while richer ones save more.
- Data from Household Consumption Expenditure Surveys (HCES) may under-estimate inequality by failing to capture extremely high incomes.
Catastrophe bonds (cat bonds) are hybrid insurance-cum-debt financial products that transfer hazard risk from at-risk states to global financial markets through securitization. This mechanism provides a larger pool of funds for post-disaster relief and reconstruction, offering quicker payouts and reduced counter-party risk. Governments sponsor these bonds, paying premiums, with the principal at risk for investors if a disaster occurs. While profitable for investors seeking diversification, India could benefit from sponsoring a South Asian cat bond to ring-fence public finances against increasing extreme weather events. However, defectively designed cat bonds might not pay out despite significant disasters, emphasizing the need for transparent government procedures.
- Catastrophe bonds (cat bonds) are financial instruments that convert insurance risk into tradable securities, transferring disaster risk to global financial markets.
- They offer a mechanism for quicker payouts and reduced counter-party risk for post-disaster relief and reconstruction.
- Governments act as sponsors, paying premiums, while investors risk their principal if a specified disaster occurs, making them attractive for diversification.
Prime Minister Narendra Modi, during his visit to Namibia, emphasized India's commitment to cooperating with Africa for shared growth rather than competition. He highlighted India's historical support for Namibia's decolonization and congratulated the nation for adopting India's UPI digital payment system. Modi met with Namibian President Netumbo Nandi-Ndaitwah, signing agreements for an Entrepreneurship Development Centre and cooperation in health and medicine. Namibia also joined the India-led Coalition of Disaster Resilient Infrastructure and the Global Biofuel Alliance. Modi was conferred Namibia's highest civilian honor, the Order of the Most Ancient Welwitschia Mirabilis, underscoring strong bilateral ties.
- PM Modi advocated for India-Africa cooperation based on shared growth and mutual benefit, rather than competition.
- Namibia adopted India's UPI digital payment system, marking a significant step in digital cooperation.
- Several agreements were signed, including establishing an Entrepreneurship Development Centre and cooperation in health and medicine.
India played a key role in the Financial Action Task Force (FATF) report, "Comprehensive Update on Terrorist Financing Risks," which for the first time recognized state sponsorship as a means of funding terrorism. This reinforces India's long-held position, particularly regarding Pakistan, identified as a source of terror financing since 2022. The report highlights that governments can provide financial, logistical, and training support to terrorist organizations, posing a threat to international peace. The findings are expected to influence National Risk Assessments (NRAs) of other countries, with the U.S. already noting terror threats from Pakistan. This will increase scrutiny and cost of doing business for Pakistani entities.
- India was a key contributor to the FATF report that, for the first time, explicitly recognized state sponsorship as a method of terrorist financing.
- This FATF finding significantly strengthens India's stance against Pakistan, which India has identified as a source of terror financing since 2022.
- The report details various forms of government support for terrorist activities, including direct financial aid, logistical assistance, and training.
The 17th BRICS Summit, which included newly inducted members like Egypt, Ethiopia, UAE, Iran, and Indonesia, demonstrated the group's cohesion despite internal rivalries and external pressures. The Rio declaration addressed critical geopolitical issues, including attacks on Gaza and Iran, terror financing, cross-border terrorism, and U.S. tariffs. India played a significant role in shaping the joint statement, ensuring condemnation of terror attacks like Pahalgam. As India prepares to lead the BRICS grouping next year, which represents about half the global population, 40% of global GDP, and a quarter of global trade, it aims to fulfill the vision of "Building Resilience and Innovation for Cooperation and Sustainability."
- The 17th BRICS Summit, with new members, demonstrated cohesion among its members despite global challenges and internal differences.
- The Rio declaration addressed critical geopolitical issues, including conflicts in Gaza and Iran, terror financing, and U.S. tariffs.
- India played a significant role in shaping the joint statement, ensuring condemnation of terror attacks like Pahalgam.
Global military spending reached $2,718 billion in 2024, a 9.4% increase, the highest since 1988, driven by conflicts like the Russia-Ukraine war. NATO's pledge to increase member nations' defence expenditure to 5% of GDP by 2035 is a key driver. The US, China, Russia, Germany, and India are the top five spenders. This increased militarisation is criticized for crowding out domestic health spending, especially in low- and middle-income countries. It also negatively impacts the UN's budget, which is facing cuts due to insufficient funding, partly from US foreign aid reductions. Furthermore, rising military spending hinders progress towards UN Sustainable Development Goals, including poverty eradication, health, and climate change.
- Global military spending reached $2,718 billion in 2024, marking a 9.4% increase, the highest since 1988, primarily due to ongoing conflicts.
- NATO members have pledged to increase their defence spending to 5% of GDP by 2035, a significant rise from the previous 2% target.
- Increased military spending is shown to crowd out domestic health spending, particularly in middle- and low-income countries, and negatively impacts the UN's budget and its ability to fund humanitarian aid.
Andhra Pradesh's ₹81,900 crore Polavaram Banakacherla Link Project, aiming to transfer Godavari water to Rayalaseema, is in limbo due to multiple challenges. Telangana alleges it violates the A.P. State Reorganisation Act, 2014. An expert committee denied clearance, citing the need to examine the Godavari Water Disputes Tribunal award and consult the CWC. The project is energy-intensive, requiring 3,377 MW, and has a significant environmental footprint, including a 19.5-km tunnel through the Nallamala forest. Its hybrid annuity funding model places clearance responsibility on contractors, and the assumption of surplus Godavari floodwaters remains unverified, raising legal and financial uncertainties.
- The Polavaram Banakacherla Link Project, costing ₹81,900 crore, aims to transfer Godavari river water to the drought-prone Rayalaseema region in Andhra Pradesh.
- Telangana opposes the project, arguing it violates the A.P. State Reorganisation Act, 2014, and an expert committee denied initial clearance.
- The project is highly energy-intensive, requiring 3,377 MW of power, and poses significant environmental concerns, including cutting through the Nallamala forest.
The Union Cabinet approved a ₹1-lakh crore Research Development and Innovation (RDI) scheme to boost private sector investment in basic research. A special purpose fund within the Anusandhan National Research Foundation (ANRF) will provide low-interest loans, with ANRF expected to source 70% of its budget from private sources. However, the scheme is criticized for its conservatism, as it only funds Technology Readiness Level-4 (TRL-4) projects, neglecting basic research (TRL-1). The article argues that advanced countries developed due to military-industrial complexes supporting risky R&D, and highlights India's brain drain and lack of a skilled manufacturing sector as persistent issues.
- The Union Cabinet approved a ₹1-lakh crore RDI scheme to incentivize private sector investment in basic research.
- The scheme will operate through the Anusandhan National Research Foundation (ANRF), which will provide low-interest loans and is expected to get 70% of its budget from private sources.
- A major criticism is the scheme's focus on Technology Readiness Level-4 (TRL-4) projects, which are already halfway developed, rather than supporting fundamental research.
Women-led Micro, Small and Medium Enterprises (MSMEs) in India significantly contribute to employment and GDP, yet they face persistent challenges, particularly limited access to formal credit. Despite government schemes like Pradhan Mantri MUDRA Yojana (PMMY), women-led MSMEs experience a credit gap of about 35%, compared to 20% for men. This disparity forces them to rely on riskier informal credit sources. Factors contributing to this include lack of awareness about schemes, low financial literacy, and perceived risk due to insufficient collateral or property ownership. Women-led informal micro-enterprises (IMEs) also struggle with formal credit due to lack of documentation, though the Udyam Assist Portal aims to address this by facilitating formal recognition. Administrative inefficiencies in scheme implementation further exacerbate these issues, despite increased liquidity in the banking system.
- Women-led MSMEs in India face a significant credit gap (35%) compared to men (20%), hindering their growth and financial independence.
- Despite government initiatives like Pradhan Mantri MUDRA Yojana (PMMY), a substantial portion of sanctioned funds does not reach women-led MSMEs.
- Lack of awareness, low financial literacy, and perceived risk due to insufficient collateral are major barriers for women entrepreneurs.
The Kerala government has filed an admiralty suit in the High Court seeking ₹9,531 crore in compensation for marine and coastal pollution, loss of livelihood for fishers, and remediation measures following the sinking of the container vessel MSC Elsa-3. The vessel, owned by MSC Shipping Company, sank off the Alappuzha coast on May 25, carrying 643 containers, including hazardous cargo and plastic pellets (nurdles). The incident caused an oil slick, plastic nurdles washing ashore (60 tonnes collected), and led to a severe crash in the fisheries market. Six carcasses, including dolphins and a whale, suspected to have died from exposure to microplastics and toxic substances, were found. The claim includes ₹8,626.12 crore for pollution damage, ₹378.48 crore for environmental restoration, and ₹526.51 crore for economic loss to fishers.
- Kerala government is seeking ₹9,531 crore in compensation for marine pollution caused by the sinking of MSC Elsa-3.
- The vessel carried hazardous cargo and plastic nurdles, leading to an oil slick and significant coastal contamination.
- The pollution has severely impacted the fisheries market and is suspected to have caused marine animal deaths.
The Atomic Energy Regulatory Board (AERB) has granted Nuclear Power Corporation of India Ltd. (NPCIL) a five-year license to operate two indigenously developed 700 MWe Pressurised Heavy Water Reactors (PHWRs) at the Kakrapar Atomic Power Station (KAPS) in Gujarat. This decision follows rigorous multi-tiered safety reviews of the reactor design and commissioning results, a process that spanned almost 15 years. KAPS-3 received full power operation permission in August 2023, and KAPS-4 in August 2024. The issuance of this license is a significant boost for NPCIL's efforts to build 10 more 700 MWe PHWRs in fleet mode across the country, reinforcing India's self-reliance in nuclear technology.
- AERB has licensed NPCIL to operate two indigenously developed 700 MWe PHWRs at Kakrapar Atomic Power Station (KAPS) in Gujarat.
- The licensing process involved rigorous multi-tiered safety reviews of the reactor design and commissioning, taking nearly 15 years.
- KAPS-3 and KAPS-4 received permission for full power operation in August 2023 and August 2024, respectively.
Prime Minister Narendra Modi's recent bilateral visits to Ghana, Trinidad and Tobago, and Argentina, en route to the BRICS summit, highlight India's commitment to strengthening ties with the Global South. The visits focused on enhancing cooperation in pharmaceuticals, vaccines, digital technology, food security, and critical minerals. India aims to build alternative economic mechanisms and offer low-cost solutions to global challenges, promoting India-led international organizations like the Coalition for Disaster Resilient Infrastructure (CDRI). Modi also emphasized the Indian diaspora's role as India's "pride." The article underscores the historical connections and shared experiences of these nations as former colonies, driving their commitment to South-South cooperation and a more equitable global order.
- PM Modi's recent visits to Ghana, Trinidad and Tobago, and Argentina underscore India's focus on strengthening ties with the Global South.
- Cooperation areas include pharmaceuticals, vaccines, digital technology, food security, and critical minerals.
- India aims to build alternative economic mechanisms and promote India-led international organizations like CDRI.
The Union Cabinet approved the Employment-Linked Incentive (ELI) scheme with an outlay of ₹99,446 crore, aiming to create over 3.5 crore jobs. The scheme, implemented by EPFO, offers incentives like first installment payment of ₹15,000 and a savings instrument deposit for new employees. While the RSS-backed Bharatiya Mazdoor Sangh (BMS) welcomed it, other trade unions and industry experts raised concerns about EPFO's role as a custodian of employee savings, potential misuse by employers, and the scheme's effectiveness in addressing economic slowdown or improving workers' purchasing power.
- The ELI scheme aims to create over 3.5 crore jobs with a significant outlay.
- It provides incentives like direct payments and savings deposits for new employees.
- Trade unions express concerns about EPFO's role and potential misuse of funds.
Brazil's Ambassador to India, Kenneth Felix Haczynski da Nobrega, clarified that BRICS nations are not planning an alternative currency. Instead, the focus of the upcoming BRICS summit (July 6-7) in Rio is on enhancing intra-BRICS trade, addressing climate change, artificial intelligence, and combating terrorism. The group aims to increase local currency use in trade and investment, rather than creating a new currency. The discussion also covered the expansion of BRICS and its role in global governance.
- BRICS nations are not developing an alternative currency.
- The focus is on boosting intra-BRICS trade and cooperation in various sectors.
- The upcoming summit will address climate change, AI, and counter-terrorism.
A World Bank report indicates that India has significantly reduced inequality and extreme poverty between 2011-12 and 2022-23, making it the fourth most equal country globally. India's Gini Index stands at 25.5, placing it behind Slovakia, Slovenia, and Belarus. Extreme poverty in India dropped from 16.2% to 2.3% during this period. The report attributes this improvement to various initiatives and schemes aimed at reducing inequality and boosting economic inclusion.
- India is ranked as the fourth most equal country globally by the World Bank.
- The country's Gini Index has improved significantly to 25.5.
- Extreme poverty has seen a sharp decline from 16.2% to 2.3% between 2011-12 and 2022-23.
The article discusses the need for structural reforms in India's Goods and Services Tax (GST) system, prompted by the lowest tax collections in some time, with June 2025 collections at ₹1.85 lakh crore, showing the slowest growth rate in four years. It highlights inefficiencies and calls for the inclusion of fuel and alcohol under GST, despite State resistance. The author argues that the Centre should increase States' share in central taxes and stop relying on non-shareable cesses. A key reform suggested is reducing the number of GST rates and, importantly, removing the GST Compensation Cess, which was extended until March 2026 to repay loans but is no longer needed for its original purpose.
- GST collections in June 2025 were the lowest in four months, indicating a dip in economic activity and system inefficiencies.
- Structural reforms are needed, including bringing fuel and alcohol under GST, despite State resistance.
- The Centre should increase States' share in central taxes and reduce reliance on non-shareable cesses.
The Indian government has informed the World Trade Organization (WTO) of its intention to impose retaliatory tariffs of approximately $724 million on U.S. imports. This move is a response to the U.S.'s 25% ad valorem tariff increase on passenger vehicles, light trucks, and certain automobile parts from India, imposed on March 26. India argues that the U.S. measures, though not notified to the WTO, are safeguard measures inconsistent with the General Agreement on Tariffs and Trade 1994 and the Agreement on Safeguards (AoS). India reserves the right to suspend concessions under Article 8, AoS, due to lack of consultations.
- India plans to impose retaliatory tariffs on U.S. imports, citing U.S. tariffs on Indian automobiles.
- The U.S. had imposed a 25% ad valorem tariff on certain Indian automobile parts.
- India considers the U.S. tariffs inconsistent with WTO agreements, specifically GATT 1994 and AoS.
The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, approved 10 capital acquisition proposals worth ₹1.05 lakh crore, exclusively through indigenous sourcing. This decision, the first after Operation Sindoor, aims to enhance the armed forces' capabilities and boost indigenous design and development. Approved procurements include Armoured Recovery Vehicles, Electronic Warfare Systems, Integrated Common Inventory Management System, Surface-to-Air Missiles, and Quick Reaction Surface-to-Air Missile (QRSAM) systems for the Indian Army. Naval procurements like Moored Mines and Mine Counter Measure Vessels were also cleared to mitigate risks to maritime assets.
- The DAC approved indigenous defence procurement worth ₹1.05 lakh crore for 10 capital acquisition proposals.
- The move aims to enhance the operational preparedness of the armed forces and promote indigenous design and development.
- Key procurements include Armoured Recovery Vehicles, Electronic Warfare Systems, and Quick Reaction Surface-to-Air Missile (QRSAM) systems.
Despite formal recognition and inclusion in social protection schemes, gig and platform workers in India lack clear statistical visibility in primary labour data sources like the Periodic Labour Force Survey (PLFS). The PLFS subsumes gig work under vague categories such as 'self-employed,' failing to capture its unique nature—multiple job roles, algorithm dependence, lack of formal contracts, and absence of safety metrics. This statistical invisibility hinders evidence-based policymaking, making access to welfare schemes uneven and exclusionary. The article calls for updating PLFS classification codes or introducing specific survey modules to distinctly capture gig work, ensuring inclusive policy for this growing workforce, projected to reach 23.5 million by 2029-30.
- Gig and platform workers, despite formal recognition, lack distinct classification in India's primary labour statistics, such as the PLFS.
- The current classification fails to capture the unique characteristics of gig work, including algorithm dependence and lack of formal contracts.
- This statistical invisibility hinders evidence-based policymaking and makes access to social security schemes uneven and exclusionary for gig workers.