Nepal's recent election results, described as a "political earthquake," have brought a younger generation of professionals and tech-savvy figures to power, rejecting old leaders and established parties. This shift presents India with a strategic opportunity to foster a forward-looking bilateral relationship. The new government faces significant challenges, including creating jobs, stimulating economic growth, and ensuring good governance. India has responded quickly and constructively, focusing on development, infrastructure, digital connectivity, and energy. Policy makers on both sides must discard old mindsets and address irritants with fresh approaches, prioritizing people-centric policies. The article suggests that Nepal's shift is part of a wider regional phenomenon of youth-led agitations demanding better governance, and India should view new leaders pragmatically rather than as anti-India.
- Nepal's recent elections signify a major political shift, bringing in a younger generation of leaders.
- This change offers India a strategic opportunity to build a forward-looking bilateral relationship with Nepal.
- The new Nepali government faces challenges like job creation, economic growth, and good governance.
Nepal's new leadership, led by Prime Minister-designate Balendra Shah and the Rastriya Swatantra Party (RSP), faces the complex task of navigating international relations. Shah's rise, marked by a "monastic" campaign and critiques of the political establishment, reflects a generational shift. While his nationalist stance, including displaying a "Greater Nepal" map and briefly banning Indian films, resonates domestically, he must now manage Nepal's geopolitical realities. India remains Nepal's most crucial partner, with deep economic and social ties. China has expanded its footprint with infrastructure projects like the Pokhara International Airport. Washington has also become a strategic interest partner. The new administration's first major test will be managing the implications of the West Asia conflict, given Nepal's energy lifelines and migrant population in the Persian Gulf.
- Nepal's new leadership, under Balendra Shah, must navigate complex international relations.
- Shah's nationalist approach, while popular domestically, needs to adapt to geopolitical realities.
- India is Nepal's most significant partner due to strong economic, social, and energy ties.
Two Indian-flagged LPG carriers, Jag Vasant and Pine Gas, successfully transited through the Strait of Hormuz on Monday evening. These vessels are collectively carrying nearly 93,000 tonnes of LPG. This transit occurred amidst heightened tensions in the West Asia region, following a U.S. ultimatum to Iran and subsequent reports of Iranian attacks on U.S. targets. The inter-Ministerial briefing held on Monday confirmed the safe passage, highlighting the ongoing importance of the Strait for international energy trade despite regional instability.
- Two Indian LPG carriers, Jag Vasant and Pine Gas, transited the Strait of Hormuz.
- The vessels carried approximately 93,000 tonnes of LPG.
- The transit took place amidst escalating tensions in the West Asia region.
Iran has resumed gas supplies to Iraq at a rate of five million cubic metres per day, according to the Iraqi electricity ministry. The supplies were previously halted after Israel attacked Iran's main gas field, South Pars, on Wednesday. While the current volume is a fraction of the contracted 50 million cubic metres, Iraqi officials anticipate a gradual increase. The resumption has brought stability to Iraq's national grid, which recorded 14,000 megawatts of production, highlighting the critical interdependence of energy infrastructure in the volatile West Asia region.
- Iran has resumed gas supplies to Iraq at a rate of five million cubic metres per day.
- The supplies were previously halted due to an Israeli attack on Iran's South Pars gas field.
- The current supply volume is significantly lower than the contracted 50 million cubic metres, but is expected to increase gradually.
Iraq has declared force majeure on all oilfields developed by foreign companies, effectively halting most of the country's crude exports and slashing output. This drastic measure is a direct consequence of severe disruptions to navigation through the Strait of Hormuz, a critical choke-point for global oil and liquefied natural gas supplies, due to unprecedented military activity in the region. The oil ministry stated that international partners could not nominate tankers, leading to storage capacity limits. This situation has contributed to international oil prices reaching their highest levels in nearly four years, underscoring the severe economic impact of the West Asia war.
- Iraq declared force majeure on all foreign-developed oilfields, leading to a halt in crude exports and production.
- The decision was prompted by severe disruptions to navigation through the Strait of Hormuz due to military activity.
- The inability of international partners to nominate tankers resulted in storage capacity reaching its limits.
The Central government has approved an additional 20% allocation of commercial Liquid Petroleum Gas (LPG) to states and Union Territories, specifically for sectors like restaurants, hotels, and food processing. This raises the total commercial LPG allocation to 50% of the estimated requirement. The decision comes amidst concerns over LPG supply disruptions due to the West Asia war and the effective closure of the Strait of Hormuz, a critical maritime chokepoint. Consumers are now mandated to register with public sector fuel retailers and apply for piped natural gas (PNG) connections to be eligible for commercial LPG.
- The government increased commercial LPG allocation to states and UTs by an additional 20%, bringing the total to 50% of the estimated requirement.
- This measure aims to support sectors like restaurants, hotels, and food processing, which were severely affected by supply cuts.
- The decision is a response to LPG supply disruptions caused by the West Asia war and the impact on the Strait of Hormuz.
The US Supreme Court's scrapping of the International Emergency Economic Powers Act (IEEPA) tariffs has diminished the economic value of existing US trade deals, prompting the US to build a new tariff architecture based on Section 301 investigations. Countries like Malaysia and the EU have expressed doubts or put deals on hold, as the reciprocal tariff policy collapsed. The US has launched Section 301 investigations citing structural excess capacity and "forced" labour, which could lead to differential tariffs by May. India is adopting a "wait and watch" approach, assessing the implications for its own trade deal with the US and its comparative advantage.
- The US Supreme Court's ruling on IEEPA tariffs has reduced the economic value of previous US trade agreements.
- The US is now developing a new tariff architecture, primarily utilizing Section 301 investigations.
- Section 301 investigations cite issues like structural excess capacity and forced labor, potentially leading to new differential tariffs.
The Centre will scrutinise all Jal Jeevan Mission (JJM) projects costing over Rs 100 crore to address concerns about inflated costs in the first phase. This rationalisation exercise, announced by the Union Ministry of Jal Shakti, aims to ensure efficient use of funds before release to states. The JJM, which aims to provide 55 litres of potable water per person daily to every rural household via tap connections, had its deadline extended from 2024 to 2028, with an additional outlay of Rs 1.51 lakh crore. States were informed of this decision on March 14, following Cabinet approval of the mission extension.
- The Union government will scrutinise Jal Jeevan Mission (JJM) projects exceeding ₹100 crore to address concerns of cost escalation.
- The JJM aims to provide 55 litres of potable water per person daily to every rural household through tap connections.
- The mission's original completion deadline of 2024 has been extended to 2028.
BRICS, a significant global collective, has increasingly focused on science, technology, and innovation (STI) cooperation, expanding beyond basic science to socially relevant areas like energy, water, health, and environment. The group's membership has grown to include countries like Saudi Arabia and Iran, fostering knowledge exchange and collaborative research. Initiatives like the BRICS Action Plan for Innovation Cooperation and the BRICS Technology Transfer Centre aim to build shared capacities. While significant progress is seen in ICT and HPC, challenges remain in areas requiring heavy infrastructure and due to uneven participation from new members. The 2025 Declaration on AI elevates artificial intelligence as a central pillar of multilateral governance.
- BRICS has significantly enhanced scientific, technological, and innovation (STI) cooperation since 2011, expanding to include socially relevant areas.
- The group's membership has grown to include countries like Saudi Arabia, Egypt, UAE, Ethiopia, Indonesia, and Iran, fostering broader collaboration.
- Initiatives such as the BRICS Action Plan for Innovation Cooperation and the BRICS Technology Transfer Centre aim to build shared capacities and promote technology transfer.
Tamil Nadu, aiming for a $1-trillion economy by 2030, needs to significantly boost its basic science funding to become a leader in green technology. While the state has integrated climate action across sectors and launched dedicated environmental missions, its revenue spending on Science and Technology (S&T) and R&D expenditure remains modest compared to other states and international benchmarks like South Korea. The current approach risks making Tamil Nadu a consumer rather than a creator of green technologies, as evidenced by the import of photovoltaic modules despite being a solar installation leader. Increased investment in fundamental research is crucial to develop homegrown solutions.
- Tamil Nadu aims to achieve a $1-trillion economy by 2030 and become a leading hub for green technology.
- The state has implemented various climate action strategies and dedicated environmental missions, including the Climate Change Mission and Green Climate Fund.
- Tamil Nadu's R&D expenditure, at under 0.5% of GSDP, is significantly lower than benchmarks, risking its role as a consumer rather than a creator of green technologies.
The Union Budget 2026's ₹20,000 crore allocation for a carbon credit programme has caused confusion regarding its primary focus: Carbon Capture, Utilization, and Storage (CCUS) for "hard-to-abate" industries or carbon credits for farmers through sustainable agriculture. Official documents, like the DST's "R&D Roadmap for CCUS," clearly target industrial sectors (power, steel, cement, refineries, chemicals) for capturing flue gases, explicitly excluding agriculture. However, a parallel narrative persists about farmers earning credits. The confusion stems from the Budget's broad use of "carbon credit programme," highlighting a communication gap and the need for separate policy frameworks for industrial decarbonization and agricultural carbon sequestration.
- The Union Budget 2026 allocated ₹20,000 crore for a carbon credit programme, leading to confusion about its beneficiaries.
- Official documents indicate the fund is primarily for Carbon Capture, Utilization, and Storage (CCUS) in "hard-to-abate" industrial sectors like power, steel, and cement.
- Agriculture is explicitly excluded from CCUS strategies but is relevant for Carbon Dioxide Removal (CDR) through soil carbon sequestration and agroforestry.
India's West Asia policy has undergone a significant reset, marked by increased diplomatic engagement, including 15 visits by PM Modi to GCC countries and CEPA agreements. This shift aims to leverage India's national interests, moving towards a "hard diplomacy" approach that prioritizes security and stability concerns of Gulf monarchies. The article discusses criticisms of this reset, such as perceived abandonment of Palestinian and Iranian support, but argues that other international actors like China and Russia have also pursued self-interested policies. It highlights opportunities for India to diversify security partnerships and position itself as an alternative hub amidst regional instability.
- India's West Asia policy has seen a "reset" with increased diplomatic engagement and strategic partnerships, including CEPA agreements with UAE and Oman.
- The new approach emphasizes "hard diplomacy," prioritizing India's national interests and the security concerns of Gulf monarchies.
- Criticisms regarding the perceived abandonment of traditional support for Palestine and Iran are addressed by highlighting similar self-interested policies of other global powers.
After two weeks of intense conflict in West Asia, several key takeaways emerge for Iran, Israel, and India. Iran has demonstrated strategic resilience, effectively avoiding direct confrontation with the US while showcasing the strength of its proxy network. Israeli Prime Minister Netanyahu has consolidated political power domestically, despite facing increasing international pressure and scrutiny. India navigates a complex strategic dilemma, balancing its critical energy security needs, the welfare of its vast diaspora, and its strategic partnerships in the volatile region. The conflict underscores the region's inherent volatility, the limitations of purely military solutions, and the urgent need for sustained diplomatic engagement to prevent further escalation and protect India's multifaceted interests.
- Iran has demonstrated strategic resilience, leveraging its proxy network while avoiding direct US confrontation.
- Israeli Prime Minister Netanyahu has consolidated political power domestically, despite international scrutiny.
- India faces a complex strategic dilemma, balancing energy security, diaspora protection, and diplomatic ties in the volatile region.
This compilation presents recent statistics across various critical sectors. Global demand for liquefied natural gas (LNG) is projected to increase significantly by 2040-2050. Pakistan reported an 8% rise in child abuse cases in 2025, with girls constituting the majority of victims. The ongoing West Asia conflict has led to thousands of flight cancellations by both Indian and foreign airlines. Positively, Punjab and Haryana achieved a substantial 90% reduction in fire incidents during the 2025 paddy-harvesting season. Furthermore, India has established a large number of Biodiversity Management Committees, enhancing community participation in conservation efforts.
- Global LNG demand is projected to rise significantly by 2040-2050, indicating growing energy needs.
- Child abuse cases in Pakistan increased by 8% in 2025, highlighting a persistent social issue.
- The West Asia conflict caused over 4,300 flight cancellations by Indian airlines, impacting travel and trade.
India's heavy reliance on imported LPG for cooking is both costly and vulnerable to geopolitical shocks. Electric cooking, particularly with induction cooktops, is now demonstrably cheaper and more energy-efficient than unsubsidized LPG. However, widespread adoption presents significant challenges for the national power grid, necessitating advanced smart technologies like OpenADR for effective demand response and substantial investments in distribution infrastructure upgrades. Integrating rooftop solar with battery storage and enabling peer-to-peer energy trading can further alleviate grid stress and reduce import dependence, making this transition a critical step towards India's energy sovereignty. Comprehensive policy shifts, including redirecting LPG subsidies and implementing time-of-use tariffs, are crucial for a successful and sustainable transition.
- Electric cooking is more cost-effective and energy-efficient than unsubsidized LPG, offering a path to reduce India's import dependence.
- Mass adoption of electric cooking requires robust smart grid management, including demand response technologies like OpenADR, to prevent peak load issues.
- Rooftop solar with battery storage and peer-to-peer energy trading can significantly alleviate grid stress and enhance energy sovereignty.
The article introduces the Belém model, proposed at the Amazon Summit, as a transformative paradigm for forest finance. This model advocates for a 'bioeconomy' that assigns intrinsic value to standing forests and their crucial ecosystem services, moving beyond conventional carbon credit mechanisms. It emphasizes the necessity of public-private partnerships, active involvement of local communities, and innovative financial instruments to support sustainable forest management, biodiversity conservation, and climate resilience. The primary goal is to address the substantial financial gap required for forest protection while simultaneously ensuring equitable benefit-sharing and empowering indigenous communities in conservation efforts.
- The Belém model proposes a new approach to forest finance, emphasizing a bioeconomy that values standing forests and their ecosystem services.
- It aims to move beyond traditional carbon credit mechanisms by focusing on comprehensive forest value.
- The model advocates for public-private partnerships and innovative financial instruments to fund sustainable forest management.
India's 'neighbourhood first' and 'Act East' policies are under severe strain due to escalating conflicts in West Asia, particularly involving the US, Israel, and Iran. The Red Sea crisis has significantly disrupted global trade routes, directly impacting India's energy security and economic interests. The editorial highlights India's delicate diplomatic balancing act, as it strives to maintain strong ties with all regional parties while consistently advocating for de-escalation and a two-state solution. The country's priorities include protecting its vast diaspora in the Gulf, securing vital trade routes, and ensuring regional stability amidst complex geopolitical shifts and humanitarian crises.
- India's foreign policy initiatives are significantly challenged by the escalating conflicts in West Asia.
- The Red Sea crisis has severely impacted India's trade, energy security, and overall economic interests.
- India is maintaining a delicate diplomatic balance, engaging with all parties while advocating for peace and a two-state solution.
India's National Statistical Office (NSO) has released a revised GDP series with 2022-23 as the base year, after an 11-year gap. The new series indicates a 3-4% reduction in the absolute size of GDP compared to the 2011-12 series. It also shows changes in the production structure, with increased shares for agriculture and industry, and a decline in the services sector. The non-financial private corporate sector's share has decreased, while the household/informal sector's share has risen. This revision is seen as a welcome correction to previous overestimations, though further methodological details are awaited to fully assess its veracity.
- The NSO released a revised GDP series with 2022-23 as the new base year, replacing the 2011-12 series.
- The new series shows a 3-4% reduction in India's absolute GDP size compared to previous estimates.
- Structural changes include increased shares for agriculture and industry, and a decreased share for the services sector.
The ongoing conflict in West Asia has severely impacted India's Liquefied Petroleum Gas (LPG) supply, highlighting the nation's heavy import dependence. India imports about 60% of its LPG, with 90% routed through the Strait of Hormuz, primarily from Qatar, UAE, and Kuwait. This dependence, coupled with limited strategic storage capacity (less than two days of consumption), makes India vulnerable to supply disruptions and price hikes. The government has responded by directing domestic refiners to maximize LPG production for household consumers and cutting LPG subsidy allocation. LPG consumption has surged due to schemes like PMUY, increasing active consumers to 33 crore.
- India is heavily dependent on LPG imports, with approximately 60% of its requirement sourced from West Asia via the Strait of Hormuz.
- The nation's strategic LPG storage capacity is critically low, holding less than two days of consumption.
- The government has mandated domestic oil refiners to maximize LPG production and prioritize household consumers to mitigate supply disruptions.
Iran has escalated its campaign in West Asia by attacking commercial ships in the Persian Gulf and targeting Dubai International Airport and financial institutions. This comes amidst rising global energy concerns and American-Israeli airstrikes on Iran. A Thai cargo ship, Mayuree Naree, bound for India, was hit in the Strait of Hormuz, leaving three crew members missing. India's MEA deplored the attacks, emphasizing the danger to commercial shipping and civilian lives. Iran also warned of targeting West Asia's financial institutions. The International Energy Agency plans to release 400 million barrels of oil from reserves to manage price jumps, the largest such release ever.
- Iran has intensified attacks on commercial shipping and critical infrastructure in West Asia, including Dubai Airport and financial institutions.
- A Thai cargo ship, Mayuree Naree, en route to Kandla, India, was struck in the Strait of Hormuz, resulting in three missing crew members.
- India's Ministry of External Affairs condemned the attacks, highlighting the threat to commercial shipping and Indian citizens.
Iran has intensified attacks on economic targets and U.S. missions across West Asia, with U.S. President Trump warning against talks. Drones and missiles struck oil facilities and U.S. embassies in Saudi Arabia, Kuwait, and UAE. Concurrently, Israel has bombarded targets in Iran and expanded operations against Hezbollah in Lebanon. The conflict has led to the closure of the Strait of Hormuz, a critical chokepoint for global oil trade, causing oil prices to surge and impacting global energy security, particularly for major importers like China and India. The U.S. State Department has ordered evacuations from several Gulf nations.
- Iran has escalated attacks on economic infrastructure and U.S. missions in West Asia, leading to a regional conflict.
- Israel has simultaneously conducted bombardments in Iran and expanded operations against Hezbollah in Lebanon.
- The conflict has resulted in the closure of the Strait of Hormuz, a critical chokepoint for global oil trade, causing oil price surges.
To reach net-zero emissions by 2070, India must decarbonize its steel sector, a major industrial polluter. The Ministry of Steel has identified 14 task forces to create a roadmap for low-carbon production. While 'green steel' carries a price premium, its impact on large infrastructure project costs is estimated at only 5.5%. The article suggests using public procurement as a lever, leveraging the 'Green Star' rating system and 'Made in India' QR codes for verification. Aligning Production Linked Incentives (PLI) with green hydrogen missions is crucial for scaling industry response and bypassing international carbon tariffs.
- Steel remains one of India's largest industrial sources of CO2 emissions, making its decarbonization vital for climate goals.
- A 'Green Steel Taxonomy' with a 3 to 5-star rating system has been introduced to rank steel by emission intensity.
- International examples like Japan's Green Purchasing framework and California's Buy Clean model offer templates for green procurement.
Budget 2026 introduces shifts to deepen India's corporate bond market, aiming to reduce the burden on commercial banks for long-term infrastructure financing. Currently, Indian banks carry 60-65% of all non-financial corporate debt, creating a maturity mismatch as they use short-term deposits to fund long-term projects. The budget proposes market-making frameworks, total-return swaps, and an Infrastructure Risk Guarantee Fund. By expanding the bond market, the government hopes to distribute long-term credit risk across institutional investors, making the financial system more resilient to shocks and freeing up bank credit for small and medium enterprises.
- India's corporate bond market is less than 15% of GDP, significantly lower than the US (80%) or China (30%).
- Banks face 'maturity transformation' risks by funding 15-20 year infrastructure projects with short-term deposits.
- The government has injected over ₹3.2 lakh crore into public sector banks since 2017 to manage bad loans and stabilize the system.
The government’s updated ‘Urban Challenge Fund’ aims to make Urban Local Bodies (ULBs) more self-reliant by encouraging market-linked infrastructure development. The Centre will cover 25% of project costs if cities raise 50% through bonds, loans, or Public-Private Partnerships (PPPs). However, many Indian cities lack the administrative capacity and credible accounting systems to borrow effectively. There are concerns that shifting focus to monetizable assets might sideline essential services for weaker sections. The article emphasizes that fixing the political economy of local taxes and ensuring minimum service guarantees are prerequisites for successful fiscal devolution and sustainable urban growth.
- The Urban Challenge Fund promotes 'market-linked, reform-driven, and outcome-oriented' urban infrastructure development.
- ULBs struggle with chronic underutilization of funds in schemes like AMRUT, Swachh Bharat, and Smart Cities Mission.
- Fiscal powers have not been properly devolved to ULBs, making them heavily dependent on State-level transfers and grants.