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.
India aims to be a global leader in AI governance, championing an inclusive and human-centric approach. However, this aspiration is undermined by the absence of a comprehensive, democratically anchored national AI strategy, with current initiatives like the IndiaAI Mission being insufficient. Unresolved questions about national priorities, governance values, and institutional structure pose risks of strategic dependencies and lack of democratic legitimacy. The author highlights critical risks in defense, critical infrastructure, employment disruption (e.g., 65,000 job cuts by top IT firms in 2024), and significant energy implications. A national strategy, developed through open public deliberation and parliamentary oversight, is crucial for harnessing AI for national leadership and public good.
- India's ambition to lead in AI governance is hampered by the lack of a comprehensive, democratically anchored national AI strategy.
- Current initiatives like the IndiaAI Mission are insufficient without clear national priorities and governance frameworks.
- Risks include strategic dependencies on foreign technologies, job displacement due to automation, and significant energy demands of AI.
India's development cooperation with the Global South has shown significant growth, with financial flows nearly doubling from $3 billion in 2010-11 to $7 billion in 2023-24. However, rising sovereign debt levels in the Global South and a global decline in Official Development Assistance (ODA) necessitate a re-evaluation of development finance strategies. The article emphasizes the concept of a Global Development Compact (GDC) for a balanced approach and highlights Triangular Cooperation (TrC) as a powerful mechanism to bridge the Global North-South divide. TrC, involving traditional donors, pivotal Global South countries, and partner countries, fosters shared learning and co-creation of solutions, demonstrating efficacy in physical infrastructure and social progress.
- India's development cooperation with the Global South has seen substantial growth, but global financial challenges necessitate a rephasing of development finance.
- The concept of a Global Development Compact (GDC) promotes a balanced approach across various modalities of engagement.
- Triangular Cooperation (TrC) is presented as an effective mechanism to bridge the Global North-South divide, involving multiple partners for shared learning.
Prime Minister Narendra Modi's five-nation trip, including the BRICS summit in Brazil, aims to strengthen cooperation within the Global South and foster a "balanced multipolar world order." India, as a founding BRICS member, is committed to the platform for cooperation among emerging economies, striving for a peaceful, equitable, and democratic global order. Modi's itinerary also includes visits to Ghana, Trinidad and Tobago, Argentina, and Namibia, where he will hold bilateral meetings and receive high state honours. The visits are expected to enhance partnerships in investment, energy, health, capacity building, and development, with Ghana aiming to become Africa's "vaccine hub."
- PM Modi's five-nation trip includes the BRICS summit in Brazil, aiming to foster a multipolar world order and strengthen Global South cooperation.
- India views BRICS as a crucial platform for cooperation among emerging economies to achieve a peaceful and equitable global order.
- The Prime Minister will receive high state honours in Ghana and Trinidad and Tobago during his visit.
A recent lethal accident at a Sigachi Industries pharma unit in Hyderabad, which killed 36 people, highlights the critical need for a high safety culture in India's pharma manufacturing industry. Despite the benign nature of the substance (Microcrystalline Cellulose), its production involves risky processes. The article emphasizes that such hazardous units must conduct Process Hazard Analysis (HAZOP) by competent staff, integrate data for abnormality detection, and ensure operators are well-trained and safety-conscious. Frequent accidents in the sector, a key foreign exchange earner, underscore the failure to conform to global safety norms, which can negatively impact India's trade.
- A recent accident in a Hyderabad pharma unit, killing 36, underscores the urgent need for robust safety protocols in the manufacturing sector.
- The article highlights that even with benign substances, manufacturing processes can be hazardous, requiring strict adherence to safety procedures.
- It stresses the importance of Process Hazard Analysis (HAZOP), data integration for abnormality detection, and continuous training for operators.
The Union Cabinet has approved an Employment-Linked Incentive (ELI) scheme with an allocation of ₹99,446 crore to boost job creation, primarily in manufacturing. The scheme offers incentives to first-time employees (one-month wage up to ₹15,000) and employers (up to ₹3,000 per month for two years, extended for manufacturing). It aims to create over 3.5 crore jobs, with 1.92 crore beneficiaries being first-timers. Benefits are applicable for jobs created between August 1, 2025, and July 31, 2027, as part of a larger government package for youth employment and skilling.
- The Union Cabinet has approved the Employment-Linked Incentive (ELI) scheme to stimulate job creation, particularly in the manufacturing sector.
- The scheme offers financial incentives to both first-time employees and employers for generating additional employment.
- It targets the creation of over 3.5 crore jobs, with a significant focus on integrating new entrants into the workforce.
The article explores the role of Geographical Indication (GI) tags in preventing cultural misappropriation, prompted by Prada's use of Kolhapuri chappals designs. It defines a GI tag as intellectual property identifying goods with distinctive qualities linked to their geographical origin, serving as a powerful marketing tool for rural development and cultural preservation. While India has 658 registered GI-tagged goods, GI rights are primarily territorial, meaning there is no automatic international protection. The article highlights historical instances of exploitation of Indian traditional knowledge, such as Basmati rice, turmeric, and neem, by global corporations, underscoring the need for mechanisms like expanding the Traditional Knowledge Digital Library to prevent future misappropriation.
- Geographical Indication (GI) tags identify products whose unique qualities are linked to their geographical origin, serving as a marketing tool and preserving cultural knowledge.
- GI rights are primarily territorial, implying that protection is limited to the country or region where the tag is granted, without automatic international recognition.
- India possesses 658 registered GI-tagged goods, but its traditional products and knowledge have historically faced exploitation and cultural misappropriation by global entities.
The article reviews eight years of Goods and Services Tax (GST) in India, acknowledging its success in unifying the market, enhancing economic efficiency, and significantly boosting national revenue, with collections reaching ₹22.08 lakh crore in 2024-25. However, it highlights a major shortcoming in public health, specifically tobacco taxation. Since GST implementation, there have been no significant tax increases on tobacco products, leading to increased affordability and undermining public health goals. The current tax burden on tobacco products remains well below the WHO recommendation of 75%. The article advocates for raising GST rates on tobacco to the peak 40% and increasing specific excise duties to reduce consumption and boost revenue.
- GST has successfully unified India's market, improved economic efficiency, and significantly increased national revenue since its introduction in 2017.
- A major flaw in the GST regime is the lack of significant tax increases on tobacco products, which has made them more affordable and hindered public health efforts.
- The current tax burden on tobacco products is significantly lower than the World Health Organization's (WHO) recommended 75% of the retail price.