Gujarat has launched its first-ever Data Centre Policy (2026-29) to position itself as a preferred destination for hyperscale data centres, cloud computing, and AI-driven digital infrastructure. The policy targets ₹6 lakh crore in investments and 7.5 gigawatts (GW) of data centre capacity. It offers extensive fiscal and non-fiscal incentives, including capital and interest subsidies, power tariff support, SGST reimbursement, and stamp duty exemptions. Chief Minister Bhupendra Patel launched the policy, which aims to capitalize on the rapid growth of data-intensive sectors and strengthen Gujarat's digital economy.
- Gujarat launched its Data Centre Policy (2026-29) to attract investments in digital infrastructure.
- The policy aims to secure ₹6 lakh crore in investments and create 7.5 GW of data centre capacity.
- It offers various incentives like capital subsidy, interest subsidy, power tariff support, and SGST reimbursement.
India is experiencing a significant credit card boom, with a substantial increase in new customers and card issuance. However, this growth is accompanied by rising delinquencies and increasing borrower stress, particularly among 'new to credit' users and those holding multiple cards. CIBIL data indicates a surge in credit card balances and a growing share of non-performing assets, signaling potential risks for the banking sector. The trend highlights the need for cautious lending practices and robust risk management to ensure sustainable growth in the credit card segment and prevent widespread financial distress.
- India is witnessing a credit card boom, marked by a surge in new customers and card issuance.
- This growth is accompanied by rising delinquencies and increasing borrower stress, especially among 'new to credit' users.
- CIBIL data shows a significant increase in credit card balances and non-performing assets.
The International Monetary Fund (IMF) has lowered its global growth forecast for 2026 to 3%, citing persistent inflation, geopolitical tensions, and high interest rates as key headwinds. Despite the global slowdown, India's growth forecast remains robust at 6.4%, driven by strong domestic demand and public investment. The report highlights that while advanced economies face challenges, emerging markets like India show resilience. However, the IMF warns that continued supply-chain disruptions and tighter financial conditions could impede global economic recovery, necessitating careful policy management worldwide.
- The IMF lowered its global growth forecast for 2026 to 3% due to inflation and geopolitical tensions.
- India's growth forecast remains robust at 6.4%, driven by strong domestic demand and public investment.
- Persistent inflation, high interest rates, and supply-chain disruptions are key challenges to global economic recovery.
A recent flare-up in the Strait of Hormuz, involving US and Iranian forces, has exposed the fragility of the informal US-Iran Memorandum of Understanding (MoU) and kept global oil markets on edge. Despite the unwritten agreement to de-escalate, Iran's continued assertive actions, including seizing vessels, demonstrate its intent to challenge US presence and control regional waterways. This volatility underscores the persistent geopolitical risks to global energy supplies, as approximately 20% of the world's oil passes through this critical chokepoint, highlighting the complex and unstable dynamics in the Middle East.
- A recent flare-up in the Strait of Hormuz highlights the fragility of the informal US-Iran MoU.
- Iran's assertive actions, including vessel seizures, continue despite de-escalation efforts.
- The tensions in the Strait of Hormuz keep global oil markets volatile and on edge.
The Employees' Provident Fund Organisation (EPFO) has launched a new portal to automate data processing across its regional centers. This initiative, part of the 'e-Office' project, aims to streamline operations, reduce manual intervention, and enhance efficiency in managing provident fund accounts. The automation will ensure faster processing of claims, withdrawals, and other services for its vast member base. This move is expected to significantly improve service delivery and transparency for EPFO subscribers, making the system more robust and responsive.
- EPFO launched a new portal to automate data processing from its regional centers.
- The initiative is part of the 'e-Office' project, aiming to enhance operational efficiency.
- Automation will reduce manual intervention and ensure faster processing of claims and withdrawals.
The India-Japan partnership is deepening, offering a powerful model for global governance amidst turbulence. Recent agreements from the 16th India-Japan Annual Summit include $12.5 billion Japanese investment in infrastructure and manufacturing, defense co-development, and collaboration in critical technologies and clean energy. Beyond economic and security ties, the partnership leverages demographic synergy, with India's youthful workforce addressing Japan's aging society. Rooted in shared democratic values, this alliance aims to foster an inclusive economic paradigm, expand a stable middle class, and serve as a blueprint for a more equitable and democratic Indo-Pacific.
- The India-Japan partnership is strengthening across economic, defense, and technological sectors.
- Recent agreements include significant Japanese investment and defense co-development projects.
- The partnership leverages demographic complementarity, with India's youth addressing Japan's aging population.
Indian engineering colleges are facing challenges in the era of Artificial Intelligence, with many losing their relevance due to outdated curricula, poor faculty, and a lack of industry alignment. This results in low employability for graduates, despite India producing 1.5 million engineers annually. The article suggests a comprehensive reset, including interdisciplinary learning, skill-based education, robust faculty development, and strong industry-academia collaboration. Such reforms are crucial to prepare students for future job markets and ensure India's engineering education remains competitive and relevant in the evolving technological landscape.
- Many Indian engineering colleges are losing relevance due to outdated curricula and poor faculty in the AI era.
- The lack of industry alignment leads to low employability for engineering graduates.
- A comprehensive reset is needed, focusing on interdisciplinary and skill-based education.
The Directorate General of Lighthouses and Lightships (DGLL) plans to develop India Point, the southernmost tip of the Great Nicobar Island, into a tourism hub while preserving its historic lighthouse. The project includes constructing a new lighthouse, a jetty, and eco-tourism facilities, aiming to boost the local economy and enhance the strategic importance of the region. This development aligns with NITI Aayog's broader vision for the sustainable development of the Great Nicobar Island, balancing economic growth with environmental protection in this ecologically sensitive area.
- India Point, the southernmost tip of Great Nicobar Island, is slated for development as a tourism hub.
- The project includes constructing new infrastructure like a lighthouse, jetty, and eco-tourism facilities.
- The Directorate General of Lighthouses and Lightships (DGLL) is overseeing the development.
Prime Minister Narendra Modi arrived in Melbourne for the third annual summit with Australian Prime Minister Anthony Albanese. The visit aims to strengthen the India-Australia Comprehensive Strategic Partnership, focusing on cooperation in the Indo-Pacific region, critical minerals, and education. This visit is expected to boost India's MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions) and Indo-Pacific vision, further cementing ties between the two QUAD partners and creating new opportunities for prosperity, especially for Small Island Developing States.
- PM Modi is in Australia for the third annual summit with PM Anthony Albanese to strengthen bilateral ties.
- Key discussion areas include Indo-Pacific cooperation, critical minerals, and education partnership.
- The visit aims to boost India's MAHASAGAR and Indo-Pacific vision.
New Zealand Prime Minister Christopher Luxon expressed confidence in strengthening ties with India, emphasizing economic, defense, security, and people-to-people connections. He highlighted the global geopolitical shift from a rules-based to a power-based system, advocating for India and New Zealand to jointly remake the case for a rules-based international order. Luxon noted New Zealand's welcoming stance towards Indian immigrants, viewing it as an opportunity amidst growing anti-immigrant sentiments in other Western democracies, and stressed the importance of a broader and deeper relationship between the two countries.
- New Zealand Prime Minister Christopher Luxon advocates for India and NZ to jointly promote a rules-based global system.
- Bilateral ties between India and New Zealand are strengthening across economic, defense, security, and people-to-people pillars.
- Luxon noted a global shift from a rules-based to a power-based system, necessitating a joint effort from like-minded countries.
An analysis by the Centre for Research on Energy and Clean Air (CREA) projects that El Niño conditions will significantly strain India's power system. Weaker wind and hydropower output, combined with rising demand for air conditioning, could create a generation gap of nearly 18 TWh over the next year. This shortfall, though less than 1% of total annual output, is likely to be filled by a surge in coal-fired power, leading to an estimated 17 million tonnes of carbon dioxide emissions. CREA urges faster adoption of batteries and grid upgrades to meet future demand surges with clean energy, criticizing the curtailment of solar and wind power in 2025-26.
- El Niño conditions are projected to strain India's power system, leading to weaker wind and hydropower output.
- A generation gap of nearly 18 TWh is anticipated over the next year due to reduced renewable output and increased demand for air conditioning.
- This shortfall is likely to be met by a surge in coal-fired power, potentially releasing 17 million tonnes of carbon dioxide.
Union Cooperation Minister Amit Shah announced that a cooperative life insurance company will soon be established to boost the growth of cooperatives in India. Speaking on the fifth Foundation Day of the Ministry, Shah stated that the Cooperation Ministry has revitalized the cooperative movement, which was "neglected" during the Congress rule. He highlighted the expansion of cooperatives beyond traditional sectors like dairy and sugar, citing Bharat Taxi's success. Shah also mentioned initiatives like creating a database of the sector, establishing Tribhuvan Sahkari University in Anand, Gujarat, and transferring/inaugurating numerous grain godowns to bring transparency and professionalism.
- A cooperative life insurance company will be established soon to promote the growth of cooperatives in India.
- Union Cooperation Minister Amit Shah stated that the Ministry has revitalized the cooperative movement.
- Cooperatives are expanding beyond traditional sectors, with examples like Bharat Taxi's success in ride-hailing.
A potential 'super' El Niño and weak monsoon rainfall, with a 40% deficit in June and "below normal" forecast for July, threaten India's economy. A poor monsoon could reduce agricultural output, depress rural incomes, fuel food inflation, and slow GDP growth. CRISIL projects maize acreage decline and potential shifts to pulses, while the RBI warns of an adverse impact on growth-inflation outlook. Past El Niño years (1972, 1982, 2009, 2015) saw significant agricultural output contractions and double-digit inflation. Experts urge India to 'drought-proof' its economy through investments in irrigation, drought-resistant crops, and risk-reduction measures.
- A weak monsoon, exacerbated by El Niño conditions, threatens India's economy through reduced agricultural output, lower rural incomes, and increased food inflation.
- The India Meteorological Department (IMD) forecasts "below normal" rainfall for July, following a 40% deficit in June.
- Past El Niño years, such as 1972, 1982, 2009, and 2015, led to significant agricultural contractions and high inflation.
Tamil Nadu Chief Minister C. Joseph Vijay has urged Prime Minister Narendra Modi to reconsider a proposed amendment to the National Food Security Act, 2013. The amendment seeks to convert the existing household-based entitlement of 35 kg foodgrains per month under Antyodaya Anna Yojana (AAY) to a per capita benefit of 7 kg per person, with an overall ceiling of 35 kg per household. CM Vijay argues this change would diminish food security for nearly 70 lakh vulnerable citizens in Tamil Nadu, particularly penalizing states with smaller families and reducing foodgrains for the poorest households.
- Tamil Nadu CM C. Joseph Vijay opposes the proposed amendment to the National Food Security Act, 2013.
- The amendment would change AAY entitlement from 35 kg per household to 7 kg per person, capped at 35 kg per household.
- CM Vijay argues this would reduce food security for nearly 70 lakh vulnerable citizens in Tamil Nadu.
The Union Consumer Affairs Department has increased the procurement price of onions by 13% to ₹2,125 per quintal for the Price Stabilisation Buffer. This move aims to boost procurement and ensure better returns for farmers, coming amid rising retail prices and farmer complaints about unremunerative prices. NAFED and NCCF are procuring onions from various states. Despite production estimates of 307.37 lakh metric tonnes for 2025-26, the government anticipates prices to inch up due to normal seasonality and speculative buying, though current stock levels are adequate.
- The Union Consumer Affairs Department increased the onion procurement price by 13% to ₹2,125 per quintal for the Price Stabilisation Buffer.
- The hike aims to provide better returns to onion farmers and strengthen buffer procurement efforts.
- NAFED and NCCF are responsible for procuring onions from various states.
Prime Minister Narendra Modi inaugurated the CG Semi Outsourced Semiconductor Assembly and Test facility at Sanand in Gujarat. He emphasized that semiconductor clusters are emerging across India, which will generate significant employment opportunities. This inauguration aligns with India's broader push to establish a robust domestic semiconductor ecosystem, crucial for technological self-reliance and economic growth. The government aims to foster a strong manufacturing base for semiconductors to reduce reliance on imports and boost indigenous capabilities in high-tech industries.
- Prime Minister Modi inaugurated a semiconductor assembly and test facility in Sanand, Gujarat.
- The establishment of semiconductor clusters across India is expected to create large-scale employment opportunities.
- This initiative is part of India's broader strategy to build a robust domestic semiconductor ecosystem.
Prime Minister Narendra Modi stated that India successfully managed the challenges of the West Asia conflict through effective assessment, strategic decision-making, and leveraging domestic resources and strong diplomatic ties. The country avoided fuel rationing, ensured cooking gas supplies, and shielded consumers and farmers from global price spikes, with state-run oil marketing firms (OMCs) absorbing losses. Modi credited domestic refineries for increasing LPG production, highlighting India's position as the world's fourth-largest refiner, with plans for further expansion. He made these remarks during the inauguration of the HPCL Rajasthan Refinery Ltd. (HRRL) in Balotra.
- PM Modi asserted that India effectively managed the West Asia crisis through strategic decisions and leveraging domestic resources and diplomatic ties.
- The government prevented fuel rationing and ensured cooking gas supplies, shielding consumers from price hikes.
- State-run oil marketing firms (OMCs) bore the financial losses to maintain stable prices.
India's Ambassador to China, Vikram Doraiswami, stated that increased Chinese investment in India would benefit both the economy and broader bilateral ties. He also advocated for greater Indian exports to China, particularly in pharmaceuticals, where India is globally competitive. Despite a political freeze since 2020, bilateral trade has expanded, though it remains lopsided with a significant deficit. Efforts to normalize relations are underway following a meeting between PM Modi and President Xi Jinping in October 2024, after disengagement along the Line of Actual Control (LAC).
- India's Ambassador to China, Vikram Doraiswami, emphasized the benefits of increased Chinese investment for India's economy and bilateral relations.
- He also called for greater Indian exports to China, especially in competitive sectors like pharmaceuticals.
- Despite a political freeze since 2020, bilateral trade has grown, but India faces a substantial trade deficit with China.
Prime Minister Narendra Modi and Japanese counterpart Sanae Takaichi emphasized a "free and rules-based Indo-Pacific" as a common priority during Takaichi's first visit to India. Both leaders stressed the need for strategic cooperation, with Takaichi stating the two countries are "perfectly aligned." India and Japan agreed on co-development projects in defence, including a naval radio antenna, and will jointly develop technologies for maritime security and regional peace. An economic session saw Indian and Japanese companies sign 129 MoUs on technology, investment, and AI. Japan is also set to invest $1 trillion across various Indian states.
- India and Japan consider a "free and rules-based Indo-Pacific" a shared priority and are committed to strategic cooperation.
- The two nations have initiated their first defence co-development agreement, focusing on a naval radio antenna.
- Joint efforts will be made to develop technologies for maintaining maritime security and regional peace.
An analysis by The Hindu reveals that States' expenditure under the new Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, 2025, could increase nearly six-fold, from ₹7,700 crore in 2024-25 to at least ₹51,000 crore in 2026-27. This significant shift in financial burden from the Centre to States is a major concern, as the new scheme changes the funding pattern from roughly 90:10 (Centre:State) under MGNREGA to a 60:40 ratio for most categories. The Centre's interim allocation of ₹95,692.31 crore for 2026-27 does not specify State contributions or how past dues will be settled, raising concerns about financial implications for states.
- States' expenditure under the new VB-G RAM G Act is projected to increase nearly six-fold by 2026-27.
- The new scheme shifts a significant financial burden from the Centre to the States, changing the funding pattern from 90:10 to 60:40 for most categories.
- The Centre's interim allocation for 2026-27 does not clarify State contributions or how past dues will be settled.
India has made significant progress in its energy transition, achieving near-universal household electrification and expanding renewable energy. However, to meet 2047 energy self-reliance and 2070 net-zero goals, an integrated approach is crucial. An INSA policy brief proposes a four-pillar framework: adequacy (reliable, diversified supplies), access (equitable services), affordability (economically viable transition), and appropriate sustainability (aligned with developmental priorities). This framework emphasizes greater coordination across diverse energy resources and technologies, viewing the entire energy system as an integrated whole to build a resilient, affordable, and sustainable energy future.
- India needs a unified policy architecture to achieve its energy self-reliance by 2047 and net-zero emissions by 2070 goals.
- An INSA policy brief proposes a four-pillar framework: adequacy, access, affordability, and appropriate sustainability.
- The framework advocates for reliable and diversified energy supplies, equitable energy services, economically viable transition, and sustainability aligned with India's context.
India's energy security relies on reducing dependence on disrupted resources, as demonstrated by the refining sector's flexibility during the Strait of Hormuz crisis in 2026. The article argues that similar discipline is needed for coal chemistry to produce domestic molecules like Dimethyl Ether (DME) from coal gasification. DME, chemically similar to LPG, can be blended into existing cylinders, reducing LPG imports and saving foreign exchange. The Union Cabinet has approved a ₹37,500 crore scheme to promote coal and lignite gasification, targeting 100 million tonnes annually by 2030, highlighting the strategic importance of indigenous capability.
- India's energy security can be enhanced by developing indigenous coal chemistry capabilities.
- Producing Dimethyl Ether (DME) from coal gasification can reduce reliance on imported LPG.
- DME can be blended into existing LPG infrastructure without needing new distribution networks.
The World Bank Group (WBG) has indicated it will drop its funding target for climate-centric projects, following strong disapproval from the U.S. administration, its largest shareholder. The WBG will retire its 45% climate co-benefits target and 35% target in the Climate Change Action Plan (CCAP), shifting focus from inputs to outcomes. The U.S. argues the WBG should prioritize its core mission of poverty reduction and economic growth, claiming climate finance targets breed inefficiency. This decision could impact climate-focused projects in developing countries, including India, which has several ongoing initiatives with the WBG.
- The World Bank Group is abandoning its climate finance funding targets due to U.S. disapproval.
- The WBG will retire its 45% climate co-benefits target and 35% CCAP target, focusing instead on development impact.
- The U.S., as the largest shareholder, believes the WBG should prioritize poverty reduction and economic growth over climate targets.
The Centre has fixed a floor wage of ₹300 per day under the new Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, 2025, which replaced the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). This move has increased wage rates for 21 States and Union Territories that previously paid less than ₹300. While some states saw significant hikes, others had minimal increases. Critics, including former Rural Development Minister Jairam Ramesh, argue the wages are "unjustifiably low" and fall short of the ₹375 per day recommended by the Dr. Anoop Satpathy Expert Committee in 2019.
- The new VB-G RAM G Act, 2025, establishes a national floor wage of ₹300 per day, replacing MGNREGA.
- This change has led to increased wage rates for 21 States and Union Territories that previously paid below ₹300.
- Critics argue the new wage is insufficient, citing the Dr. Anoop Satpathy Expert Committee's 2019 recommendation of ₹375 per day.