Current Affairs 26-06-2026

In Kunal Shah’s Appointment, a Signal of WhatsApp’s India Ambitions

Meta’s decision to appoint CRED founder Kunal Shah as the global CEO of WhatsApp, coupled with a $900 million investment in his fintech startup, is more than a leadership change—it is a strategic pivot. It signals that Meta is placing its biggest bet yet on transforming WhatsApp from the world’s largest messaging app into a global commerce and financial services powerhouse, with India at the center of this ambition .

Why Shah and Why Now?

Kunal Shah is not a typical Silicon Valley executive. He is an entrepreneur who built two successful consumer internet businesses in India: FreeCharge, sold for $400 million in 2015, and CRED, a premium fintech platform that rewards users for paying credit card bills . By appointing Shah, Meta is bringing in a leader with an “intuitive grasp” of WhatsApp’s massive global product opportunity and the ability to navigate the disruption expected from artificial intelligence . As Meta Chief Product Officer Chris Cox noted, Shah was “the clear choice” .

Mark Zuckerberg emphasized Shah’s “builder mentality and global perspective,” which he believes will serve him well in leading the world’s biggest messaging app . This is a crucial point: WhatsApp, despite its 3 billion users, remains significantly “undermonetised” relative to its scale . The challenge for Shah is to convert this massive user base into a sustainable revenue engine without breaking the trust that makes WhatsApp indispensable .

WhatsApp’s Monetisation Problem

WhatsApp’s struggle to monetize its user base, especially in its largest market of India, is well-documented. While the platform dominates messaging, its payments arm, WhatsApp Pay, has failed to gain significant traction . Despite having over 500 million users in India, WhatsApp Pay accounted for only around 0.65% of UPI transactions as of May 2026, a fraction of the market share held by rivals PhonePe and Google Pay . The platform’s core promise of “simple, private communication” has also constrained the extent to which traditional monetisation tools like advertising can be deployed .

The Superapp Ambition

Shah’s appointment has fueled speculation that WhatsApp will increasingly move towards becoming a “superapp”—an all-encompassing digital platform that integrates messaging, payments, ride-hailing, shopping, and other services . This is a model that has achieved significant success in China with WeChat. Shah’s experience building CRED, which has expanded from a credit card bill-payment app into a broader financial services platform spanning payments, lending, insurance, and wealth products, is seen as directly relevant to this vision . A senior Meta employee indicated that Shah “shares Mark Zuckerberg’s vision around building a superapp” .

However, the superapp model has struggled to gain similar traction in India, partly because of the maturity of the digital ecosystem, where consumers already have access to a wide range of specialized apps . WhatsApp’s unparalleled reach and deep integration into daily life may give it an edge over its rivals in making the model work .

The Strategic Value of CRED and Shah’s ‘Trust’ Factor

Meta’s investment in CRED is not just about acquiring a stake in a fintech company. Industry experts believe it is a strategic bet on Kunal Shah himself . CRED’s biggest asset is not its technology stack but its highly engaged and financially active consumer base, which includes members with high credit scores who are more likely to engage in higher-value transactions . As one expert put it, “Meta isn’t buying CRED for credit cards or rewards. Meta is buying trust” . Shah’s ability to build a brand around financial trust and his understanding of consumer behavior are seen as critical to solving WhatsApp’s monetisation puzzle .

A New Chapter in Indian Tech Leadership

Shah’s appointment marks a significant shift in global tech leadership. Unlike many Indian-origin tech executives who rose through the ranks in Silicon Valley, Shah built and scaled businesses in India . His elevation reflects India’s growing importance not merely as a source of users but as a source of leadership and innovation . The challenge for Shah will be to apply his experience in building premium consumer products to a mass-market platform used by billions while navigating complex cross-border privacy laws, systemic fraud, and varying AI regulations . If he succeeds, it would mean that the route to the top of Big Tech may no longer run exclusively through Silicon Valley .

Q&A

Q1: Who is Kunal Shah, and why was he chosen to lead WhatsApp?

A1: Kunal Shah is the founder of CRED, a successful Indian fintech startup. He was chosen by Meta due to his “builder mentality,” his deep understanding of consumer behavior and digital payments in India, and his experience in building and scaling consumer internet businesses . Meta was looking for a leader who had an intuitive grasp of WhatsApp’s global product opportunity and could navigate the disruption expected from artificial intelligence .

Q2: What is WhatsApp’s current monetisation challenge in India?

A2: Despite having over 500 million users in India, WhatsApp has struggled to convert this massive user base into a sustainable revenue engine . Its payments service, WhatsApp Pay, has failed to gain significant traction, commanding only a tiny share of India’s UPI market, which is dominated by rivals like PhonePe and Google Pay . The challenge is to find a way to monetize the platform without eroding the user trust that is its core asset .

Q3: What is a “superapp,” and how does it relate to WhatsApp’s future?

A3: A superapp is an all-encompassing digital platform that combines a wide variety of services like messaging, payments, ride-hailing, shopping, and food delivery into one application . WhatsApp is aiming to evolve into a superapp, moving beyond messaging into commerce and financial services, replicating the success of platforms like China’s WeChat . Kunal Shah’s experience in building a fintech platform is expected to be instrumental in this vision .

Q4: Why did Meta invest $900 million in CRED, and what does it get from the deal?

A4: Meta invested $900 million in CRED as part of the deal to appoint Kunal Shah as WhatsApp’s CEO . The investment gives Meta a minority stake (about 20%) in CRED, which is valued at $4.5 billion . More importantly, it provides Meta with strategic access to Shah’s expertise and a deeper understanding of India’s digitally active and financially attractive consumer segments, without gaining direct access to CRED’s customer data .

Q5: What are the biggest challenges Kunal Shah will face as the new WhatsApp CEO?

A5: Shah faces several challenges: fixing WhatsApp’s monetisation gap without eroding user trust ; converting WhatsApp’s mass-market user base into active financial services users, a problem that has persisted for years ; navigating complex and varied global privacy laws, fraud, and regulations ; and replicating strategies that worked for a niche premium audience like CRED’s across a platform used by billions .

100% Label, Disclaimers on the Back: Why CCPA Fined Two Companies for Misleading Advertisements

From juices to breads, the “100%” label is a near-ubiquitous marketing tool meant to assure consumers of a product’s unadulterated quality . However, in two separate orders this month, the Central Consumer Protection Authority (CCPA) imposed a penalty of Rs 1 lakh each on two major food and beverage companies — Mrs. Bectors Food Specialities Ltd (makers of English Oven bread) and Storia Foods and Beverages Pvt Ltd — for running misleading advertisements and engaging in unfair trade practices by prominently using “100%” claims on their packaging and promotional materials . The CCPA also ordered them to immediately discontinue these claims across all platforms .

Legal Framework: The Consumer Protection Act, 2019

Central to both cases is the Consumer Protection Act, 2019. The CCPA invoked Section 2(28), which defines a “misleading advertisement” as one that falsely describes a product, gives a false guarantee, or deliberately conceals important information. It also relied on Section 2(47), which defines an “unfair trade practice” as making false representations about the standard, quality, or composition of goods .

The regulatory backdrop for these orders was set by the Food Safety and Standards Authority of India (FSSAI). In an advisory issued in May 2025, the food regulator noted a growing trend of brands using the “100%” term. The FSSAI underlined that the term is not defined in its advertising regulations and that its use “is likely to convey a false sense of absolute purity or superiority, potentially leading consumers to believe that competing products in the market do not comply with prescribed standards” .

Case 1: Mrs. Bectors Food Specialities Ltd (English Oven) — The ‘100% Atta Bread’ Claim

The CCPA took suo-motu cognisance of advertisements for the company’s “100% Atta Bread” and “100% Whole Wheat Bread” . During the proceedings, the company admitted that the actual wheat flour (atta) content in the bread was only 87% . However, it defended the “100%” label by arguing that it was meant to convey that wheat flour was the “sole grain source” used, without any refined flour (maida). The company also relied on FSSAI labelling regulations, which state that for a bread to be classified as “Whole Wheat Bread”, it must contain a minimum of 75% whole wheat flour. Since their product contained 87%, they argued the label was justified .

The CCPA rejected this defence, noting that while FSSAI regulations prescribe a minimum 75% threshold to classify a product as atta bread, this cannot be “elevated into a justification for making an unqualified and absolute claim such as ‘100% Atta Bread'” . It observed that an average consumer would reasonably construe the label to mean the product is entirely composed of atta. “The use of the qualifier ‘100%’ is absolute, unequivocal, and admits of no dilution or interpretative flexibility,” the CCPA said in its order, adding that a product falling short of this literal meaning renders the claim factually incorrect .

The authority also flagged the simultaneous use of “100% Whole Wheat Bread” and “Zero Maida” on packaging, noting that the combination created a cumulative — and false — impression that the product was composed entirely of whole wheat flour .

Case 2: Storia Foods and Beverages — The ‘100% Tender Coconut Water’ and ‘100% Juice’ Claims

Similar legal reasoning was applied in the case against Storia Foods . In this, the CCPA investigated the company’s “100% Tender Coconut Water” and various “100% Juice” variants, including pomegranate and mixed fruit .

The CCPA found that Storia’s coconut water was not fresh from the fruit but was reconstituted from a 9.6% coconut water concentrate . Likewise, its “100% Juice” variants consisted predominantly of water, with fruit pulp or concentrate ranging between merely 4% and 16% . The product also contained the Class II preservative INS 202, which the CCPA said made a concurrent claim of “100% Natural” wholly untenable .

Storia contended that the FSSAI permits the reconstitution of juices from concentrates. The company argued that because its manufacturing process was legally compliant and because it had included a disclaimer on the back of the pack stating the product was “reconstituted”, the front-of-pack “100%” claim was valid .

The CCPA, however, drew a distinction between a permitted manufacturing process and deceptive marketing, ruling that while FSSAI allows reconstitution, it does not grant a manufacturer the right to present a diluted, reconstituted product as undiluted natural produce .

Fine-Print Disclaimers Do Not Cure Misleading Claims

Addressing the fine-print disclaimers on the back of the packaging, the CCPA said that they do not cure the misleading nature of the bold claims on the front. “A technical parenthetical buried in the ingredient panel in disproportionately small … attempts to qualify and correct a front-of-pack claim that is inherently misleading,” the order noted . It added that an ordinary consumer purchasing “100% Tender Coconut Water” expects it to be in its natural form, free from concentration and re-dilution .

Technical Compliance Is No ‘Safe Harbour’

In both cases, the companies attempted to use technical compliance with food safety standards as a defence against the application of the Consumer Protection Act. The CCPA’s order in the Storia case, however, held that compliance with manufacturing rules does not offer a “safe harbour” for deceptive advertising . It noted in the Bectors order that the traditional doctrine of caveat emptor — “let the buyer beware” — “has undergone a marked transformation” with the enactment of the 2019 Act. The burden has now shifted to caveat venditor — “let the seller beware” .

The authority reiterated that all claims relating to composition, quality, nutrition, or health benefits must be truthful, verifiable, and non-deceptive, and said it would continue enforcement action wherever consumers are misled about the nature or composition of products . The CCPA has also ordered both companies to immediately withdraw the claims from their product packaging, websites, and all digital platforms . The fines of ₹1 lakh each were imposed under the Consumer Protection Act, 2019, and the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022 .

Q&A

Q1: Why were Mrs. Bectors Food Specialities Ltd and Storia Foods fined by the CCPA?

A1: Both companies were fined Rs 1 lakh each for using misleading “100%” claims on their product packaging. Mrs. Bectors’ “100% Atta Bread” contained only 87% atta, while Storia’s “100% Tender Coconut Water” was reconstituted from concentrate .

Q2: What defence did Mrs. Bectors offer for its “100% Atta Bread” claim, and why was it rejected?

A2: The company argued that “100% Atta” was meant to convey that wheat flour was the sole grain source (without maida), not that the bread was entirely composed of atta. The CCPA rejected this, stating that an average consumer would interpret “100%” literally and that the claim was absolute and unequivocal .

Q3: What was the CCPA’s finding regarding Storia’s “100% Tender Coconut Water”?

A3: The CCPA found that Storia’s product was not fresh coconut water but was reconstituted from a 9.6% concentrate and diluted with water. The word “reconstituted” appeared only in fine print. The product also contained preservative INS 202, making the “100% Natural” claim untenable .

Q4: Does technical compliance with FSSAI regulations provide a defence against misleading advertising claims?

A4: No. The CCPA ruled that compliance with manufacturing rules does not offer a “safe harbour” for deceptive advertising. While FSSAI permits reconstitution, it does not allow companies to present a diluted product as undiluted natural produce .

Q5: What is the significance of the shift from caveat emptor to caveat venditor in the CCPA’s orders?

A5: The CCPA noted that the Consumer Protection Act, 2019 has shifted the burden from “let the buyer beware” (caveat emptor) to “let the seller beware” (caveat venditor). This means that advertisers are now primarily responsible for ensuring their claims are truthful and non-deceptive, and they cannot rely on technical fine-print disclaimers to cure misleading front-of-pack claims .

RBI’s New Fraud Compensation Mechanism: Relief for Digital Fraud Victims Up to Rs 50,000

In a significant move to protect consumers from the growing menace of digital payment frauds, the Reserve Bank of India (RBI) has unveiled a revised compensation mechanism for victims of fraudulent electronic banking transactions (EBTs). The new framework, effective from January 1, 2027, expands the scope of customer protection beyond just unauthorised transactions and introduces a structured compensation mechanism for victims of small-value digital frauds .

Key Highlights of the New Framework

Eligibility and Compensation Amount
Victims of digital payment fraud involving losses of up to Rs 50,000 can now recover a major portion of their money . Under the new mechanism:

Eligible victims, including individuals and sole proprietors, will receive 85% of the net loss amount or Rs 25,000, whichever is lower .
This compensation is available only once during a customer’s lifetime .
For losses below Rs 29,412, victims receive 85% of the actual loss .
For losses between Rs 29,412 and Rs 50,000, the compensation is capped at Rs 25,000 .

Reporting Timeline
To be eligible for compensation, victims must report the fraud within five calendar days of its occurrence to both their bank and the National Cyber Crime Reporting Portal or Helpline (1930) . Failure to report within this window may affect eligibility .

Who Bears the Cost?
The RBI has designed a shared liability model where the central bank bears the major portion of the compensation:

For losses up to Rs 50,000, the RBI will contribute 65% of the compensation amount .
The customer’s bank contributes 10% and the beneficiary bank contributes 10% for domestic frauds .
For cross-border fraudulent EBTs, the customer’s bank’s contribution rises to 20% .

In a practical example: if a victim loses Rs 40,000 and Rs 15,000 is recovered, the net loss is Rs 25,000. The victim receives 85% of this (Rs 21,250), with the RBI contributing Rs 16,250 and the banks contributing Rs 2,500 each .

Other Important Provisions

Zero Liability for Customers
Customers will continue to enjoy zero liability in cases where the fraud results from negligence or deficiency on the part of the bank, irrespective of when it is reported . Zero liability also applies in cases of third-party breaches, provided the unauthorised transaction is reported within five calendar days .

Burden of Proof on Banks
The revised framework places the burden of proving customer liability squarely on banks . This is a significant shift from the earlier “buyer beware” approach to a “seller beware” principle. Banks must examine complaints, classify them, and establish negligence before rejecting a customer’s claim .

Complaint Resolution Timelines
Banks have been given specific timelines to resolve complaints:

45 calendar days for domestic fraudulent EBTs .
60 calendar days for cross-border fraudulent EBTs .

Mandatory Alerts and 24×7 Channels
Banks are now mandated to:

Send instant SMS alerts for all EBTs above Rs 500 .
Provide 24×7 access through multiple channels (phone banking, SMS, email, IVR, dedicated helpline) for reporting fraudulent transactions .
Provide shadow reversal for fraudulent credit card transactions within five calendar days .

What Constitutes Customer Negligence?

The RBI has clarified that customer negligence includes :

Sharing passwords, PINs, or OTPs with others
Downloading malicious applications
Ignoring specific and clear scam warnings from the bank
Failing to promptly report fraud or loss of cards
Not updating registered mobile numbers or email addresses

Conclusion

The RBI’s new compensation framework represents a comprehensive overhaul of customer protection in digital payments. By expanding the definition of covered transactions, introducing a structured compensation mechanism, and placing the burden of proof on banks, the central bank aims to strengthen trust in digital payments and protect consumers from the rising tide of digital fraud. The framework will take effect from January 1, 2027, giving banks time to align their systems and procedures with the new requirements .

Q&A

Q1: Who is eligible for compensation under the new RBI framework?
A1: Individuals and sole proprietors who suffer a loss of up to Rs 50,000 due to a fraudulent electronic banking transaction are eligible, provided they report the fraud to both their bank and the National Cyber Crime Reporting Portal (or 1930 helpline) within five calendar days. The compensation is available only once in a lifetime .

Q2: How much compensation can a victim receive?
A2: Victims receive 85% of the net loss (after recoveries) or Rs 25,000, whichever is lower. For losses below Rs 29,412, victims receive 85% of the loss. For losses between Rs 29,412 and Rs 50,000, compensation is capped at Rs 25,000 .

Q3: Who bears the cost of the compensation?
A3: The RBI bears 65% of the compensation amount. The customer’s bank and the beneficiary bank contribute 10% each for domestic frauds. For cross-border frauds, the customer’s bank contributes 20% .

Q4: What happens if a victim fails to report the fraud within five days?
A4: If the fraud is not reported within five calendar days, the victim may not be eligible for the compensation mechanism. However, if the fraud is due to the bank’s negligence, customers continue to enjoy zero liability regardless of when it is reported .

Q5: What is the timeline for banks to resolve fraud complaints?
A5: Banks must resolve complaints within 45 calendar days for domestic fraudulent EBTs and 60 calendar days for cross-border fraudulent EBTs .

Dubai’s Post-War Gambit: Can a $681 Million Rescue Restore Its Status as a Safe Haven?

Days after Iranian missiles struck the UAE in March, Dubai’s leadership convened an unprecedented emergency summit, gathering hundreds of business leaders to prevent an economic meltdown . The message was clear: the emirate that built its fortune on being a safe haven in a volatile region would fight to protect that reputation .

The Emergency Summit and “Dubai-it” Campaign

The March 10 meeting at the Meydan Hotel was a survival instinct in action . With shelters locking down across the UAE, Dubai Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al-Maktoum personally circulated between tables, pressing executives for answers . The three questions posed to attendees—how to get tourists back, how to get investors back, and how to support businesses—formed the blueprint for the city’s recovery strategy .

The government’s response has been two-pronged: immediate financial relief and a bold rebranding effort. Dubai has pledged 2.5 billion dirhams ($681 million) in targeted support, with a second 1.5 billion dirham package rolled out in May . The measures included waiving municipal fees for hotels and restaurants, suspending the Tourism Dirham, providing instalment options for customs duties, and extending building permits for construction projects .

Simultaneously, Dubai launched the “Dubai-it” campaign, a narrative designed to recast the crisis as a challenge to be overcome with characteristic speed and audacity . Large billboards appeared with just the word “Dubai-it,” a term meant to encapsulate the city’s history of rapid execution—from dredging the Creek in the 1950s to building the Burj Khalifa .

The Scale of the Economic Shock

The damage has been severe. Over $120 billion was wiped from the market capitalisation of Dubai and Abu Dhabi stock exchanges, with Dubai’s index plunging 16 percent . Hotel bookings have collapsed, with occupancy rates plummeting. Restaurant tables are slowly filling again, but March and the entire second quarter have been described as “lost” . Trade flows are also shifting, with cargo increasingly moving through Oman and Saudi Arabia to avoid the Strait of Hormuz, bypassing Dubai .

Cracks in the Model and the Path Forward

The crisis has exposed structural vulnerabilities in Dubai’s model. Its economy, which derives less than 2 percent of GDP from oil, was built on attracting international companies, hedge funds, and wealthy individuals . For Iran, that made it a target that could unsettle international finance . HSBC analysts have cut their 2026 Gulf growth forecast by 5 percentage points since the conflict began, expecting the region to contract for the first time since the COVID-19 pandemic .

While a preliminary peace deal has eased immediate strains, restoring business confidence will take time . Neil Quilliam of Chatham House noted that “investors want signals on how authorities will respond if tensions return, not just how they managed the last shock” . The CEO of a small-medium business suggested that authorities could incentivise banks to boost lending, possibly remove corporate tax, or offer rebates .

Q&A

Q1: What was the immediate trigger for Dubai’s economic response?

A1: A March 10 emergency summit convened after Iranian strikes on the UAE, bringing together hundreds of business leaders to prevent capital flight .

Q2: What measures did Dubai announce to support businesses?

A2: A 2.5 billion dirham ($681 million) support package, including fee waivers, instalment plans for customs, and extensions for building permits .

Q3: What is the “Dubai-it” campaign?

A3: A rebranding initiative launched to project resilience and speed, referencing Dubai’s history of rapid transformation .

Q4: What was the economic impact of the conflict on Dubai?

A4: Over $120 billion wiped from stock markets, hotel occupancy plummeted, and trade routes shifted, bypassing Dubai .

Q5: What do analysts say about Dubai’s recovery?

A5: Recovery will be uneven and take time. HSBC cut Gulf growth forecasts by 5 percentage points, expecting the region to contract for the first time since COVID-19 .

Preparing Rural India for an Uncertain Monsoon: The District-Level Test of Resilience

Meteorological agencies have warned of El Niño conditions and an increased probability of deficient rainfall in several regions, particularly during the critical August-September period when standing kharif crops are most vulnerable . Such forecasts inevitably trigger concerns about agricultural output, food prices, rural incomes, and economic growth. While agriculture accounts for a smaller share of GDP today, a significant proportion of India’s population and economic activity continues to depend on the monsoon .

The India Meteorological Department (IMD) has forecast the 2026 Southwest Monsoon at about 90% of the Long Period Average (LPA), with a 60% chance of a deficient season . The United States National Oceanic and Atmospheric Administration (NOAA) has declared that El Niño is now underway and is predicted to intensify to a moderate or strong level later this year . The monsoon has already been significantly delayed, with rainfall so far being around 43% below normal, and forecasts suggest it may remain weak even during the week ending July 2 .

The District-Level Test

In response, the government has activated a multi-layered preparedness strategy. The Ministry of Agriculture, in coordination with the Indian Council of Agricultural Research (ICAR), has identified 315 districts vulnerable to weak monsoon conditions . Among these, 111 districts have been categorized as high priority, where irrigation coverage is below 25%. Another 76 districts fall under the medium-priority category, while 128 districts have been classified as low priority due to relatively better irrigation facilities . A majority of these districts are located across 12 states, including Madhya Pradesh, Maharashtra, Gujarat, Uttar Pradesh, Rajasthan, Karnataka, Bihar, Jharkhand, Telangana, Andhra Pradesh, and Odisha .

The cornerstone of this preparedness is the District Agriculture Contingency Plan (DACP) framework. These plans are designed to respond to weather uncertainty and encompass moisture conservation, seed preparedness, alternative crop strategies, and coordinated institutional action . ICAR and ICAR-Central Research Institute for Dryland Agriculture (CRIDA) have prepared DACPs for all districts, incorporating district-specific climatic conditions, cropping patterns, water resources, and risk factors . The challenge now lies in their effective implementation.

What does such preparedness actually involve on the ground?

First, seed preparedness is paramount. If the monsoon is delayed or rainfall becomes erratic, farmers will need access to short-duration varieties or alternative crops better suited to a shortened growing season . Recommendations alone are insufficient; the required seed must reach the village at the right time . The government has already arranged for additional seed stocks to be earmarked for potentially affected districts, with about one percent extra reserved specifically for resowing . States have been advised to promote short-duration crop varieties and those capable of delivering higher yields with lower water requirements . Special emphasis has been laid on pulses, Shri Anna (millets), and oilseeds, which perform relatively better under limited moisture conditions .

Second, advisory support is critical. Beyond rainfall forecasts, farmers require practical guidance. Should sowing be delayed? Should crop choice be altered? Should fertilizer application schedules be modified? How should scarce moisture be conserved for critical crop stages? Agricultural authorities are using Krishi Vigyan Kendras (KVKs), agromet units, and other advisory channels such as SMS, WhatsApp, call centres, radio, television, and social media to ensure that farmers receive timely guidance . The government has emphasized that sowing should be undertaken only after cumulative rainfall of 75–100 mm and adequate soil moisture, as premature sowing increases the risk of seed damage and resowing .

Third, moisture and water management is critical. Every millimetre of rainfall assumes value. Mulching, small farm ponds, desilting tanks, and protective irrigation become vital . The government has directed that ponds, reservoirs, streams, farm ponds, check dams, stop dams, and temporary bunding structures be repaired and strengthened immediately . Water conservation and harvesting works under MGNREGA are being prioritized . For sensitive districts, top priority is being given to drinking water supply, and water transfers from surplus to deficit regions are being arranged if necessary . The government has also directed states to use available reservoir water in a “scientific, balanced, and priority-based” manner to safeguard the maximum number of crops and farmers .

Fourth, fodder availability, drinking water arrangements, and veterinary support for livestock are integral components of drought preparedness . Livestock often provides a critical buffer for rural households when crops fail. Special focus is also being placed on expanding coverage under the Pradhan Mantri Fasal Bima Yojana in potentially affected districts to ensure timely compensation in the event of crop losses . The availability of major fertilisers is being monitored, and separate monitoring mechanisms are in place to ensure their timely distribution .

Contingency planning, in reality, is a chain of practical decisions: whether alternative seed reaches a village in time; whether a farmer receives timely advice on sowing; whether a farm pond or village tank provides one protective irrigation; whether fodder and credit are available; and whether procurement, storage, and markets are ready to support any shift in cropping patterns . Its effectiveness is ultimately measured not by the document prepared but by the quality and timeliness of actions taken across thousands of villages .

India’s agricultural resilience today is stronger than it was a generation ago, not because the monsoon has become more reliable, but because knowledge, institutions, and contingency systems have steadily evolved . Agricultural resilience is built not in the year of crisis but in the years preceding it. Yet even the best-designed plans can be undermined by failures in execution .

As the kharif season progresses, public attention will remain focused on rainfall figures and reservoir levels. Equally important, though less visible, will be the preparedness measures unfolding across districts and villages. The coming months may test not only the monsoon but also the institutional memory that Indian agriculture has accumulated over decades—and the ability to translate that learning into timely action .

Q&A

Q1: What is the current monsoon forecast for India in 2026?

A1: The India Meteorological Department (IMD) has forecast the 2026 Southwest Monsoon at about 90% of the Long Period Average (LPA), with a 60% chance of a deficient season . There is an 84% combined chance of deficient or below-normal rainfall . The monsoon has been significantly delayed, with early rainfall 43% below normal .

Q2: Which districts have been identified as most vulnerable to a weak monsoon, and how are they categorized?

A2: Around 315 districts have been identified as potentially affected. Of these, 111 districts with irrigation coverage below 25% have been categorised as high priority. Another 76 districts with 25-50% irrigation coverage are medium priority, while 128 districts with better irrigation facilities are low priority . A majority are in Madhya Pradesh, Maharashtra, Gujarat, Uttar Pradesh, Rajasthan, Karnataka, Bihar, Jharkhand, Telangana, Andhra Pradesh, and Odisha .

Q3: What are the District Agriculture Contingency Plans (DACPs), and why are they important?

A3: DACPs are district-specific plans designed to respond to weather uncertainty. They prescribe measures such as suitable alternative crops under low rainfall, crop diversification, and optimum use of available water resources . They have been prepared for all districts based on climatic conditions, cropping patterns, and water resources. Their effectiveness depends on implementation, not just preparation .

Q4: What role does seed preparedness play in the government’s response?

A4: Seed preparedness is critical. If the monsoon is delayed or rainfall becomes erratic, farmers need access to short-duration varieties or alternative crops . The government has arranged additional seed stocks for vulnerable districts, with a special reserve for resowing . States are promoting short-duration, low-water crop varieties, pulses, millets, and oilseeds .

Q5: What additional support is being provided to farmers beyond crop management?

A5: Additional support includes ensuring fodder availability and veterinary support for livestock ; expanding coverage under the Pradhan Mantri Fasal Bima Yojana for crop insurance ; and strengthening advisory services through SMS, WhatsApp, call centres, and KVKs . The government has also emphasised the need for timely credit access via Kisan Credit Cards .

Stabilising Supply Chains: Customs Overhaul and Logistics Reforms in India

Recent geopolitical shocks, particularly the closure of the Strait of Hormuz in March 2026, have thrust customs efficiency from a backend administrative function to a frontline instrument of economic resilience . The Indian government responded with a multi-pronged strategy blending immediate crisis management with long-term structural reforms in customs, trade facilitation, and logistics.

Immediate Crisis Response: Customs Relief Measures

When the Strait of Hormuz closure disrupted maritime routes, the Central Board of Indirect Taxes and Customs (CBIC) issued six emergency circulars within 38 days to address returning export cargo, international transhipment, and stranded containers . Key measures included:

Cancellation of Shipping Bills: Exporters could cancel Let Export Orders (LEO) and Shipping Bills for cargo returning to Indian ports, either to the port of origin or a different gateway port, without the physical return of containers to inland container depots (ICDs) .
International Transhipment Facilitation: Transhipment of Full Container Load (FCL) and Less-than-Container Load (LCL) cargo was permitted from all ports/airports, with nodal officers designated across Customs Zones .
SEZ Cargo Handling: SEZ-origin cargo returning to gateway ports could be stored in bonded warehouses without mandatory re-transfer to the originating SEZ .
Bill of Entry Waiver: Off-loaded cargo returning from foreign ports (e.g., Colombo) could be off-loaded without filing a Bill of Entry, subject to RFID e-seal verification .

These relaxations were time-bound, expiring on April 30, 2026 . The Ministry of Commerce supplemented these efforts with the “RELIEF” scheme under the Export Promotion Mission, extending Export Obligation periods for Advance Authorisations and EPCG Authorisations expiring between March and May 2026 .

Structural Reforms in Customs

Beyond immediate crisis management, India has undertaken significant customs reforms to strengthen long-term supply chain resilience:

1. Eligible Manufacturer Importer (EMI) Scheme
Effective April 1, 2026, this trust-based scheme allows compliant manufacturers to clear imported goods without paying customs duty at the time of clearance, settling the applicable duty on a consolidated monthly basis . The scheme aims to improve cash flow and working capital management. Eligibility requires:

Active Importer Exporter Code (IEC) and GST registration (manufacturing activity)
Minimum 25 Bills of Entry or Shipping Bills (10 for MSMEs)
Annual turnover exceeding ₹5 crore across all GSTINs
Clean compliance record (no arrests, convictions, or pending prosecutions under Customs or GST laws)

Approved EMIs are expected to progressively obtain higher AEO (Authorised Economic Operator) status (AEO-T2 or AEO-T3) .

2. Digital Trade Facilitation
India has notified 100% of its WTO Trade Facilitation Agreement commitments and advanced to “TFA Plus” measures under the National Trade Facilitation Action Plan (NTFAP 3.0) . Key digital reforms include:

Single Window Interface for customs clearance
Risk Management System (RMS) for targeted inspections
Electronic Cargo Tracking System (ECTS)
Electronic Exchange of Origin Data (EODES)

CBIC’s 2026 reforms also include removing the ₹10 lakh value cap on courier exports, benefiting MSMEs and e-commerce exporters .

3. Transition Facilitation (Quality Control) Order, 2026
Notified on June 25, 2026, this order provides a five-year window for manufacturers across 10 sectors (toys, footwear, furniture, PPE, air conditioners, electrical appliances, etc.) to comply with quality control norms, with initial licences valid for two years . A DPIIT-led committee will evaluate manufacturers, balancing quality standards with preventing supply chain disruptions .

Logistics Cost Reduction

India’s logistics cost has dropped to 7.97% of GDP (approximately ₹24 lakh crore annually) according to a 2025 NCAER study . However, the burden remains uneven: smaller firms (turnover below ₹5 crore) face logistics costs up to 16.9% of output, compared to 7.6% for larger businesses . Fuel accounts for nearly 42% of road transport costs .

Transport Mode	Cost (₹ per tonne-km)
Road	₹3.78
Rail	₹1.96
Inland Waterways	₹2.30

Source: NCAER

Key Logistics Initiatives:

PM GatiShakti National Master Plan: Integrated infrastructure planning across ministries
Dedicated Freight Corridors: Eastern DFC reduced wagon turnaround from 15–16 days to 2–3 days
Logistics Data Bank 2.0: Real-time container tracking with live heatmaps
SMILE Programme: City-level logistics planning across eight pilot cities
Multimodal Logistics Parks (MMLPs): India requires 216 MMLPs to achieve its 2047 freight modal shift targets

Conclusion

India’s approach to supply chain stabilisation combines immediate crisis response with long-term structural reforms. The customs relief measures during the Hormuz crisis demonstrated administrative agility, while reforms like the EMI scheme, digital trade facilitation, and logistics modernisation are designed to build systemic resilience. However, challenges remain—particularly the uneven logistics burden on smaller firms and the need for accelerated multimodal infrastructure development. India’s competitiveness will depend on a modern trade ecosystem supported by responsive tariff policies, seamless digital compliance, multimodal logistics networks, and predictable customs procedures .

Q&A

Q1: What customs relief measures were introduced during the Strait of Hormuz crisis?

A1: The CBIC issued emergency circulars allowing exporters to cancel Shipping Bills for returning cargo, facilitated international transhipment of FCL and LCL cargo, permitted SEZ cargo storage without re-transfer, and waived Bill of Entry requirements for off-loaded cargo from foreign ports. These relaxations were time-bound, expiring April 30, 2026 .

Q2: What is the Eligible Manufacturer Importer (EMI) Scheme?

A2: Effective April 2026, this trust-based scheme allows compliant manufacturers to defer customs duty payment on imported goods, settling the applicable duty on a monthly basis. It improves cash flow and working capital management. Eligibility requires active IEC/GST registration, minimum import/export activity, turnover above ₹5 crore, and a clean compliance record .

Q3: What is India’s current logistics cost, and how does it vary by firm size?

A3: India’s logistics cost is 7.97% of GDP (approximately ₹24 lakh crore). However, smaller firms (turnover below ₹5 crore) face disproportionately high costs of up to 16.9% of output, compared to 7.6% for larger businesses. Fuel accounts for nearly 42% of road transport costs .

Q4: What measures are being taken to reduce logistics costs?

A4: Key initiatives include PM GatiShakti for integrated planning, Dedicated Freight Corridors (DFC), Logistics Data Bank 2.0 for real-time tracking, the SMILE programme for city-level logistics planning, and development of Multimodal Logistics Parks (MMLPs). India requires 216 MMLPs to achieve its 2047 freight modal shift targets .

Q5: What is the Transition Facilitation (Quality Control) Order, 2026?

A5: Notified on June 25, 2026, this order provides a five-year transition window for manufacturers across 10 sectors (toys, footwear, furniture, PPE, air conditioners, electrical appliances) to comply with quality control norms. It aims to balance quality standards with preventing supply chain disruptions and protecting domestic manufacturing .

States’ Capex Growth Slows Sharply to 2% in April-May: A Cautionary Signal for India’s Economic Engine

India’s economic recovery narrative, heavily reliant on government-led infrastructure spending, has encountered a speed bump. Data compiled from 18 major states reveals that capital expenditure (capex) grew by a modest 2% year-on-year in April-May FY27, a sharp deceleration from the robust 33% expansion recorded in the corresponding period of FY26 . The aggregate capex for these states—which include Andhra Pradesh, Assam, Bihar, Gujarat, Uttar Pradesh, Tamil Nadu, and others—stood at ₹61,314 crore, only marginally higher than ₹60,094 crore a year ago . This significant slowdown comes at a time when the central government is nudging states and state-run enterprises to step up capital spending to support economic activity amid global uncertainties . With the Centre having budgeted to provide ₹2 lakh crore in capex support to states in FY27, the early trend suggests that this push is yet to translate into tangible momentum on the ground .

Revenue Strength vs. Spending Caution

The slowdown in capex is particularly notable given the robust improvement in states’ revenue position. Tax collections among these 18 states rose by 22% year-on-year to ₹4.2 lakh crore in April-May FY27, a significant acceleration from the marginal 1.2% increase in the same period last year . Revenue expenditure also remained firm, increasing by 5.5% to ₹5.18 lakh crore . The stronger revenue performance has allowed states to reduce their dependence on borrowings, with aggregate borrowings and liabilities falling by 28.4% year-on-year to ₹1.14 lakh crore, reversing a 24.4% rise recorded a year earlier .

The data suggests a clear picture: states have strengthened their revenue position and curbed borrowing, but capital spending momentum has moderated significantly in the initial months of FY27, reflecting a cautious approach . This divergence is striking. The government’s own strategy in recent years has been to use capital expenditure as a preferred engine for jobs and productivity growth, particularly through large infrastructure projects in roads, railways, and urban development . For 2025–26, the Centre earmarked about ₹11.21 lakh crore as direct capital outlay, with effective capex estimated at roughly ₹15.48 lakh crore, or around 4.3 percent of GDP . Early estimates for the Union Budget 2026–27 suggested a further increase to the ₹12-13 trillion range, implying a 10-15% year-on-year increase . However, the state-level data indicates that the “heavy lifting” on capex is not being shared evenly.

Winners and Losers

The state-wise breakdown reveals a mixed picture. Among the positive performers, Andhra Pradesh posted one of the sharpest increases, with capex rising to ₹5,540 crore from ₹2,242 crore a year ago . Kerala’s capital expenditure more than doubled to ₹5,708 crore, while Rajasthan’s increased to ₹5,016 crore from ₹3,759 crore, and Assam recorded strong growth with capex climbing to ₹4,628 crore .

In contrast, several major states witnessed a decline in capital outlay. Madhya Pradesh’s capex fell to ₹7,595 crore from ₹10,154 crore, Gujarat’s declined to ₹7,484 crore from ₹8,717 crore, and Uttar Pradesh’s dropped to ₹5,293 crore from ₹8,891 crore . Odisha and Tamil Nadu also reported lower capital expenditure compared with the previous year . The decline in capex from states like Uttar Pradesh and Gujarat—both significant economic contributors—is particularly concerning as it could affect job creation and long-term growth prospects .

Beyond the Numbers: Structural and Policy Implications

The slowdown in state capex is not merely a statistical anomaly; it reflects deeper structural and policy issues. A key challenge remains the capacity to absorb large capital outlays, with capacity constraints in construction firms and equipment limiting how fast public capex can realistically be scaled up each year without encountering bottlenecks or waste . State-level fiscal stress also constrains the ability of many states to invest in infrastructure, industrial development, and balanced growth . While the stronger revenue position has helped reduce borrowing, the cautious approach suggests that states are prioritizing fiscal consolidation over capital spending .

Furthermore, the uneven industrial growth across states, with a majority of industries concentrated in a few states like Maharashtra, Gujarat, and Tamil Nadu, creates fiscal disparities. Advanced states may seek greater autonomy, while lagging states demand special packages, challenging cooperative federalism and coordinated economic governance . To ensure balanced economic development, there is a need for targeted policy interventions, including tax breaks, capital subsidies, and concessional loans for less-industrial states . Initiatives such as Industrial Corridors and Dedicated Freight Corridors can reduce industrial setup costs and attract industries to remote regions .

The current scenario also raises questions about the role of public sector units (PSUs). A 2016 office memo from the budget division of the finance ministry mandates that PSUs must pay as dividend 30% of their profit after tax, or 30% of the government’s equity, whichever is higher . However, it also states that PSUs must fully or partially use market borrowings for their capital investment requirements . This policy, suitable a decade ago, may now be counterproductive. A key challenge is to stimulate private investment, create jobs, and spur consumption demand. A step-up in PSU capex would generate a multiplier effect on incomes in areas where the government’s own capex has had little effect so far .

Conclusion: A Call for Targeted Action

The sharp slowdown in state capex growth in the first two months of FY27 is a clear signal that India’s growth engine is not firing on all cylinders. While the Centre has stepped up its own capital expenditure, the state-level data suggests that the momentum is yet to catch up. The government’s strategy of using capital expenditure as a preferred engine for growth needs to be complemented by addressing structural bottlenecks, providing targeted incentives for states, and accelerating the transition to a more balanced industrial landscape. As the Centre nudges states to step up capex to support economic activity amid global uncertainties, the early signs from April-May indicate that this push is yet to translate into tangible momentum on the ground.

Q&A

Q1: What was the growth rate of state capital expenditure in April-May FY27 compared to the same period last year?

A1: Capital expenditure by 18 major states grew by a modest 2% year-on-year in April-May FY27, a sharp slowdown from the 33% expansion recorded in the corresponding period of FY26. Aggregate capex stood at ₹61,314 crore, compared with ₹60,094 crore a year ago .

Q2: How did states’ tax collections perform in April-May FY27?

A2: Tax collections rose by 22% year-on-year to ₹4.2 lakh crore in April-May FY27, accelerating from a marginal 1.2% increase in the same period last year. This stronger revenue performance helped states reduce their dependence on borrowings .

Q3: Which states showed the sharpest increase in capital spending?

A3: Andhra Pradesh posted one of the sharpest increases in capex, rising to ₹5,540 crore from ₹2,242 crore a year ago. Kerala’s capital expenditure more than doubled to ₹5,708 crore, while Rajasthan’s increased to ₹5,016 crore, and Assam recorded strong growth with capex climbing to ₹4,628 crore .

Q4: Which major states witnessed a decline in capital outlay?

A4: Madhya Pradesh’s capex fell to ₹7,595 crore from ₹10,154 crore, Gujarat’s declined to ₹7,484 crore from ₹8,717 crore, and Uttar Pradesh’s dropped to ₹5,293 crore from ₹8,891 crore. Odisha and Tamil Nadu also reported lower capital expenditure compared with the previous year .

Q5: What is the overall implication of the slowdown in state capex?

A5: The data suggests that while states have strengthened their revenue position and curbed borrowing, capital spending momentum has moderated significantly in the initial months of FY27, reflecting caution. This slowdown comes at a time when the Centre is nudging states and state-run enterprises to step up capex to support economic activity amid global uncertainties. The early trend suggests that this push is yet to translate into tangible momentum on the ground .

ONGC, BP Expand Deal to Boost Western Offshore Basin Output

State-run Oil and Natural Gas Corporation (ONGC) has significantly expanded its partnership with global energy major BP to its Western Offshore Basin, extending a collaboration that began with the Mumbai High field in February 2025 . The two companies signed a Technical Services Contract (TSC) on June 25, 2026, under which BP will provide technical expertise across 43 blocks in India’s most prolific hydrocarbon-producing region . The agreement was signed in the presence of Petroleum and Natural Gas Minister Hardeep Singh Puri and Petroleum Secretary Neeraj Mittal .

The Western Offshore Basin has been a major contributor to India’s energy requirements for more than four decades . ONGC, which accounts for approximately 64% of India’s domestic crude oil and natural gas production, will retain full ownership and operational control of the assets . BP will work alongside ONGC’s multidisciplinary teams to identify and implement focused interventions across reservoirs, wells and production facilities .

The partnership builds on the success of the Technical Services Contract signed for Mumbai High in February 2025 . According to ONGC, the first year of collaboration at Mumbai High helped moderate natural production decline and deliver output growth through well optimisation, enhanced surveillance, and focused reservoir and production facility management . The partnership at Mumbai High has reportedly led to a crude oil output increase of over 3,500-4,000 barrels per day (bpd), bringing total production to 126,000 bpd from the block .

Under the expanded agreement, BP will receive a fixed fee during the first two years, followed by a performance-linked service fee tied to a percentage share of revenue generated from net incremental hydrocarbon production . This structure aligns payments directly with production gains, ensuring that both companies benefit from successful interventions . The collaboration targets a 10.8% increase in crude oil production and a 31.5% rise in gas production, representing a combined 24.1% surge in total hydrocarbon output .

The expanded collaboration comes as ONGC focuses on improving recovery from ageing offshore assets through technology-led interventions to sustain domestic crude and natural gas production from some of the country’s most important producing fields . “Building on the encouraging outcomes at Mumbai High, this expanded collaboration will support improved recovery, greater efficiency and sustained production growth,” ONGC Chairman and CEO Arun Kumar Singh said . BP India Chairman and Senior Vice President Kartikeya Dube added, “We look forward to bringing bp’s global expertise to support enhanced production from the Western Offshore Basin and strengthen India’s energy security” .

The agreement represents a broader application of the technical services model across ONGC’s mature offshore portfolio and is intended to support higher recovery and more efficient production from existing assets . Full-scale visibility of the enhanced volumes is anticipated by the 2030 financial year .

Q&A

Q1: What is the scope of the new Technical Services Contract between ONGC and BP?

A1: The agreement covers ONGC’s Western Offshore Basin, comprising 43 blocks, and appoints BP as Technical Services Provider to enhance hydrocarbon production across India’s most prolific producing region .

Q2: What were the results of the initial BP collaboration at Mumbai High?

A2: During the first year, the partnership helped moderate production decline and delivered output growth through well optimisation, enhanced surveillance, and focused reservoir management. It reportedly increased crude oil output by over 3,500-4,000 bpd .

Q3: How will BP be compensated under the new contract?

A3: BP will receive a fixed fee for the first two years, followed by a performance-linked service fee tied to a percentage of revenue generated from net incremental hydrocarbon production .

Q4: Who retains ownership and operational control of the assets?

A4: ONGC will retain complete ownership and operational control of all assets, while BP works alongside ONGC’s teams to implement technical interventions .

Q5: Why is this partnership significant for India’s energy security?

A5: ONGC accounts for approximately 64% of India’s domestic crude oil and natural gas production. Improving recovery from ageing offshore assets helps sustain domestic production and reduce import dependence, strengthening India’s long-term energy security .

State Government Borrowings Must Focus on Asset Creation, Not Revenue Expenditure: FM

Union Finance Minister Nirmala Sitharaman on Thursday emphasised that state governments must channel their borrowed funds into long-term capital expenditure, such as schools and hospitals, rather than relying heavily on revenue expenditure like cash distributions when financial resources are tight .

Addressing the media in Kancheepuram, Tamil Nadu, Ms. Sitharaman underscored that taking loans to create public infrastructure yields a positive economic impact and generates employment for the next 50 to 60 years .

“Borrowing is not the issue, but what you do with the borrowed money matters. Are you creating assets? Is it bringing education, industries, or increasing employment? That should be the focus,” she said, noting that states are permitted to borrow up to three per cent of their Gross State Domestic Product (GSDP) . She urged state governments to focus on creating permanent assets that can drive long-term economic growth and employment . Ms. Sitharaman, who is on a two-day visit to Tamil Nadu and Puducherry, attended the Maha Kumbabhishekam of Sri Upanishad Brahmendra Mutt in Kancheepuram .

Responding to queries regarding the absence of a medical college in Kancheepuram, the Finance Minister clarified that the Centre had already announced a policy three budgets ago to support the establishment of a medical college and hospital in every district . Ms. Sitharaman urged the Tamil Nadu government to submit a proposal. “We have told the states to plan for whichever district they want. The Tamil Nadu government should understand this and plan accordingly,” she added .

Commenting on the delayed development of Andhra Pradesh’s capital, Amaravati, the minister pointed out that political shifts had stalled progress. She noted that while the capital was being built continuously between 2014 and 2019, a subsequent change in the state government halted the project until 2024 . “In any such matter, all parties must come together and take a responsible decision to carry development forward,” Ms. Sitharaman said .

When asked for her reaction to the current Chief Minister narrating a ‘short story’ to criticise his predecessor during an ongoing state legislative assembly session, Ms. Sitharaman defended the democratic process. “If political criticism is not done in the assembly, where else will it be done? Let the opposition answer and let the ruling party speak. There is nothing wrong with it,” she stated .

On fiscal management, the Union Minister reiterated that loans raised by governments must generate productive assets that strengthen the economy. “If a State borrows to build schools, hospitals, industries and other public assets, it creates a positive economic impact. Borrowings should translate into investment and capital formation. They should not be used primarily for welfare expenditure,” she said . Drawing a distinction between consumption spending and capital investment, she said infrastructure and asset creation generate economic returns and contribute to stronger State finances over time .

Ms. Sitharaman also addressed concerns regarding funds due to Tamil Nadu, asserting that the Centre has released all funds due to the state and that any assistance and statutory allocations to which the State is entitled will continue to be provided without fail. “The Prime Minister has never differentiated between states or asked that any region be given less,” she said .

Q&A

Q1: What did Finance Minister Nirmala Sitharaman say about state government borrowings?

A1: She emphasised that state governments must channel their borrowed funds into long-term capital expenditure, such as schools and hospitals, rather than relying heavily on revenue expenditure like cash distributions when financial resources are tight. She noted that states are permitted to borrow up to three per cent of their Gross State Domestic Product (GSDP) .

Q2: What is the Centre’s policy regarding medical colleges in every district?

A2: The Centre had announced a policy three budgets ago to support the establishment of a medical college and hospital in every district. Ms. Sitharaman urged the Tamil Nadu government to submit a proposal for Kancheepuram .

Q3: What did Ms. Sitharaman say about the development of Andhra Pradesh’s capital, Amaravati?

A3: She pointed out that political shifts had stalled progress. While the capital was being built continuously between 2014 and 2019, a subsequent change in the state government halted the project until 2024. She called on all parties to come together and take a responsible decision to carry development forward .

Q4: What distinction did the Finance Minister draw between revenue expenditure and capital investment?

A4: She said that borrowings should translate into investment and capital formation, and should not be used primarily for welfare expenditure. Infrastructure and asset creation generate economic returns and contribute to stronger State finances over time, while cash distributions do not create productive assets .

Q5: What did Ms. Sitharaman say about the release of funds to Tamil Nadu?

A5: She asserted that the Centre has released all funds due to Tamil Nadu and that any assistance and statutory allocations to which the State is entitled will continue to be provided without fail. She added that the Prime Minister has never differentiated between states .

Why FTA Gains Elude India: The Missing Piece of the Competitiveness Puzzle

In the post-Covid era, India has positioned itself as one of the most active players in forging free trade agreements (FTAs). From the UAE to Australia, from the UK to the European Union, and with the US deal in the pipeline, India has signed or is negotiating 17 FTAs, covering roughly two-thirds of its total trade . Yet, despite this diplomatic and bureaucratic momentum, the expected bonanza for Indian exporters remains stubbornly elusive. The core question is no longer about negotiating better deals, but about a more fundamental shortcoming: the inability to translate market access into market presence.

The numbers tell a sobering story. India’s FTA utilisation rate remains dismally low, hovering around 20-30 per cent for eligible exports, compared to 60-70 per cent utilisation by its partner countries . While India is slashing tariffs and opening its markets, its own manufacturers and exporters are struggling to leverage the preferential access they fought for. As the Global Trade Research Initiative (GTRI) points out, the problem is exacerbated by an inverted duty structure: Indian manufacturers often pay high duties on imported inputs (sourced from non-FTA countries), while competing against finished products that enter India duty-free under these same agreements .

More Than Tariffs: The CBAM and Non-Tariff Barrier Challenge

A significant reason for this stagnation lies in the changing nature of global trade. Tariffs are no longer the primary gatekeepers of market access; non-tariff measures (NTMs) have taken their place. For Indian businesses, the most daunting of these is the European Union’s Carbon Border Adjustment Mechanism (CBAM) .

The CBAM, which is set to move from reporting to full financial implementation, imposes a carbon price on imports of carbon-intensive goods like steel, aluminium, and cement . The critical blow for India is that CBAM exists independently of the FTA. Even under the India-EU FTA, which offers tariff cuts, Indian steel and aluminium exporters will still have to pay the carbon levy. As one expert noted, for every $100 of steel exported, CBAM costs could amount to around $38, and if exports exceed safeguard quotas, the combined burden could be as high as $95 . This effectively erodes the tariff gains from the trade deal before they even materialise .

While India has secured a forward-looking MFN assurance (any flexibility given to third countries will be extended to India) and discussions on green financing, the EU has been clear that CBAM is a climate measure, not a trade tool, leaving little room for country-specific exemptions .

The Compliance Deficit

Beyond CBAM, Indian exporters face a labyrinth of complex regulatory standards, including sanitary and phytosanitary (SPS) measures, product safety norms, and sustainability requirements . Meeting these requires investments in upgraded production facilities, rigorous testing, and traceability systems that many small and medium enterprises (MSMEs) find overwhelming .

The high compliance cost is a key reason why many exporters simply choose to forego FTA benefits, preferring to avoid the administrative burden for modest tariff savings . The issue is structural: while India’s manufacturing competitiveness has not kept pace, its competitors like Bangladesh and Vietnam have been more adept at meeting these standards, allowing them to steadily capture market share even as India lags .

The Road Ahead: A Strategy for Competitiveness

The lesson is clear: FTAs are a necessary but insufficient condition for export growth. They provide the opportunity, but only domestic industrial competitiveness can convert that opportunity into reality. As the Economic Survey 2025-26 highlights, manufacturing matters because it forces state capacity upgrades in logistics, skills, and infrastructure that services exports often bypass .

To truly realise the gains of its FTAs, India must urgently focus on:

Building Manufacturing Competitiveness: Strengthening the manufacturing base and improving R&D intensity to produce globally competitive products.
Tackling the Compliance Deficit: Providing MSMEs with capacity-building support to meet stringent environmental, labour, and product standards .
Negotiating the “Rules of the Game”: While CBAM may be non-negotiable, India must continue to push for mutual recognition of standards, testing, and conformity assessment to reduce compliance costs .

Without this holistic approach, India risks remaining a “paper tiger” in global trade, signing many agreements but reaping few of the rewards.

Q&A

Q1: Why is India’s FTA utilisation rate so low compared to its partners?

A1: India’s FTA utilisation is around 20-30%, compared to 60-70% for its partners. High compliance costs, cumbersome rules of origin, and low tariffs in partner countries discourage Indian exporters from using FTA preferences, especially small firms that avoid the burden for modest savings .

Q2: How does the CBAM threaten to undermine India’s tariff gains under FTAs?

A2: The Carbon Border Adjustment Mechanism (CBAM) is a climate measure that exists independently of trade deals. Even with zero tariffs under an FTA, Indian steel and aluminium exporters will still face carbon levies in the EU, effectively neutralising tariff benefits. CBAM costs could be as high as $38 per $100 of steel exported .

Q3: What is the “inverted duty structure” and how does it hurt Indian manufacturers?

A3: The inverted duty structure occurs when imported finished goods enter India duty-free under an FTA, while domestic manufacturers pay high duties on imported inputs (especially from non-FTA countries). This raises production costs, making it harder for Indian firms to compete against duty-free finished products .

Q4: Besides tariffs, what other barriers do Indian exporters face in advanced markets?

A4: Indian exporters face numerous non-tariff barriers (NTMs), including stringent sanitary and phytosanitary (SPS) rules, complex product testing and certification requirements, environmental and labour standards, and sustainability compliance. These often raise costs and create administrative burdens that small firms struggle to meet .

Q5: What is the key takeaway from India’s FTA experience?

A5: The key takeaway is that FTAs are necessary but insufficient for export growth. While trade agreements provide market access, sustained export gains require domestic industrial competitiveness, compliance with non-tariff measures, and investment in R&D and manufacturing infrastructure. Without addressing these, India risks signing agreements without realising their benefits .

Regulation Needs Clarity: The Unresolved Tata Sons Listing Dilemma

The Reserve Bank of India’s (RBI) final framework for identifying upper-layer non-banking finance companies (NBFCs) answers one question but leaves the most important one unresolved. By dropping the controversial “access to public funds” criterion, the central bank has corrected an anomaly that had rightly drawn industry criticism. Treating equity contributions from group companies as indirect public funds stretched the concept beyond reason. That change is welcome. Yet the larger question surrounding Tata Sons remains exactly where it has been for months. Does the holding company still have to list, or does it not? The final guidelines, like the draft before them, offer no answer. Nor did the RBI governor’s latest press conference. The result is that one of the country’s most closely watched regulatory issues continues to be managed through silence rather than clarity.

This matters because regulation derives its authority not merely from the rules it frames but also from the certainty with which those rules are applied. In September 2022, the RBI classified Tata Sons and Tata Capital as upper-layer NBFCs, triggering a three-year timeline for listing. Tata Capital has completed that process. Tata Sons has not. More importantly, the deadline has come and gone without any public clarification from either the regulator or the company. The revised framework does little to change that position. By retaining the ₹1 lakh crore asset threshold as the principal criterion for upper-layer classification, it arguably reinforces it. Tata Sons, with standalone assets of about ₹1.75 lakh crore, comfortably exceeds that threshold. If anything, the simplified framework narrows the scope for arguing that the company falls outside the upper-layer category. Yet the RBI has remained silent on whether the listing requirement still stands or whether circumstances have changed.

The RBI’s Revised Framework

Under the new norms, any NBFC with assets exceeding ₹1 lakh crore as per its latest audited balance sheet will qualify as an upper-layer NBFC. The central bank said the shift to a fixed asset-size criterion was intended to make the framework more transparent and that asset size is “a reasonably good proxy for systemic significance”. The RBI rejected feedback from industry that sought to raise the threshold to ₹2.5 lakh crore and to factor in additional parameters such as profitability, asset quality, leverage and interconnectedness. The regulator said the ₹1 lakh crore threshold was determined based on the current profile of the NBFC sector and an analysis of existing upper-layer entities. One carve-out was extended to government-owned NBFCs that are fully owned and controlled by the state, which will not be required to list, given their developmental mandate.

The Tata Sons Question

The revised threshold places Tata Sons squarely within the upper-layer category. The company’s standalone asset size stands at around ₹1.9 lakh crore. However, the classification will not be automatic and will follow RBI identifying the upper layer NBFCs from the companies that meet this threshold. The RBI has clarified that compliance requirements for upper-layer NBFCs will be triggered only from the date on which it notifies such a list. Tata Sons was first classified as a UL-NBFC by the RBI in September 2022, triggering a listing requirement. The company has since repaid debt and applied to surrender its NBFC registration to avoid listing — an application still under review by the RBI.

The unresolved issue is Tata Sons’ application to surrender its Core Investment Company and NBFC registrations. If approved, the company could exit the regulatory framework that gives rise to the listing obligation. The RBI is entitled to examine such a request carefully. Equally, it is entitled to conclude that Tata Sons must remain an upper-layer NBFC and comply with the listing requirement. What is harder to defend is allowing uncertainty to persist indefinitely.

The Governance Implications

The listing question also has governance implications. Under the current structure, key decisions at Tata Sons require an affirmative vote from the nominee directors of Tata Trusts. In a publicly listed company, all board members carry an equal vote, which would dilute the Trusts’ effective control over the conglomerate. The Tata Sons board is divided on the IPO, with Tata Trusts-nominated director Noel Tata opposing a listing, while fellow trust-nominated director Venu Srinivasan is in favour. Tata Trusts is the principal shareholder of Tata Sons.

The Way Forward

There is an easy way to end the speculation. If Tata Sons must list, the RBI should say so and specify a fresh compliance timeline. If deregistration is to be permitted, it should explain the basis for doing so and clarify whether the decision sets a precedent for other Core Investment Companies. If an exemption is warranted, that too should be made public, together with the reasons. Any of these outcomes would provide certainty. The present situation does not. Regulators rightly emphasise that predictability is essential for markets and investment decisions. That principle applies as much to regulatory action as it does to monetary policy. Nearly three years after the original classification, the market deserves a clear answer. Clarity strengthens regulation. Prolonged uncertainty does not.

Q&A

Q1: What was the trigger for Tata Sons’ potential listing obligation?
A1: In September 2022, the RBI classified Tata Sons and Tata Capital as upper-layer NBFCs, triggering a three-year timeline for listing. Tata Capital has completed its listing process, but Tata Sons has not.

Q2: What is the revised RBI framework for identifying upper-layer NBFCs?
A2: Under the revised norms, any NBFC with assets exceeding ₹1 lakh crore as per its latest audited balance sheet will qualify as an upper-layer NBFC. The RBI rejected suggestions to raise the threshold to ₹2.5 lakh crore, stating that asset size is “a reasonably good proxy for systemic significance”.

Q3: Why has Tata Sons not complied with the listing requirement?
A3: Tata Sons has applied to surrender its registration as a Core Investment Company (CIC) to exit the regulatory framework that gives rise to the listing obligation. The company repaid its standalone debt to claim it no longer has access to public funds. The application has been pending with the RBI since March 2024.

Q4: What are the governance implications of a potential Tata Sons listing?
A4: Under the current structure, key decisions require an affirmative vote from the nominee directors of Tata Trusts, the majority owner. A public listing would require conversion to a public limited company, diluting the Trusts’ effective control as all board members would have an equal vote. The Tata Sons board is divided on the IPO, with Noel Tata opposing and Venu Srinivasan in favour.

Q5: What is the criticism of the RBI’s approach to the Tata Sons issue?
A5: Critics argue that the RBI has maintained silence on whether the listing requirement still stands or whether the deregistration application changes anything. The deadline has passed without any public clarification, creating prolonged uncertainty. This weakens confidence in the regulatory framework, as similarly placed entities need to know how rules will be applied with certainty.

What Would Jane Austen Tweet? The Uncomfortable Marriage of Literature and the Algorithm

Being a literature graduate, it is almost obligatory that I turn up my nose at any book that lands on The New York Times bestseller list. Unfortunately, being a journalist means I also have to keep track of those very books. So, with some reluctance, I venture into BookTok — and, more reluctantly still, sometimes read what it recommends.

That is how, much to my surprise, I ended up enjoying Fourth Wing, the first novel in Rebecca Yarros’s Empyrean series. It was impossible to miss at the Delhi Book Fair, with its towering displays. The world-building was immersive, the heroine was the classic underdog, and the love interest was broody, secretive, tormented and, naturally, tattooed. I was hardly surprised when Amazon snapped up adaptation rights the year it was published. But when the series was officially greenlit last month, a thought struck me like a falling bookshelf.

Before that revelation, though, consider the other side of the equation.

I have been a devoted fan of Netflix’s global hit Bridgerton since it debuted in 2020. Whatever literary purists may say, Shondaland transformed a conventional historical romance into a lavish, emotionally satisfying drama with diverse casting. Yet it is, at heart, an adaptation of Julia Quinn’s novels. After the much-awaited fourth season released earlier this year, sales of Quinn’s books reportedly trebled.

The same pattern repeated with Heated Rivalry, adapted from Rachel Reid’s novel. The show became an online sensation, sending the entire Game Changers series flying off virtual shelves. Reid committed to another sequel centred on the lead couple, a second season was commissioned almost immediately, and its stars, Hudson Williams and Connor Storrie, found themselves walking the Met Gala carpet. Predictably, I devoured all the books within a week of finishing the series.

I admit it, somewhat sheepishly: books are no longer consumed just once. They are read, streamed, debated, clipped into social media edits, and then read again. Somewhere between dismissing adaptations and binge-watching them, this literature graduate has quietly betrayed her own creed.

The obvious penance would be to retreat into Jane Austen or George Orwell. But before returning to Longbourn, an irreverent question presents itself: what would Jane Austen have become if she were writing in the age of BookTok?

The Novel as ‘Unserious’ Entertainment

The novel itself was once dismissed as unserious entertainment. It was associated with rebellious ladies in drawing rooms or penny dreadfuls for the masses. Commercial success existed — readers famously waited at American docks for Charles Dickens’s latest instalments — but many writers worked quietly from home, often publishing anonymously, and some, including Austen and the Brontë sisters, earned lasting recognition only after death.

Could that happen today? Could Mary Shelley have conceived Frankenstein anywhere but trapped in Lord Byron’s villa during that famous thunderstorm, where a ghost-story competition was proposed to pass the evening? Would Austen still have written, “It is a truth universally acknowledged…”, if she had been worrying about algorithms, engagement, and click-through rates? Could JRR Tolkien have spent decades building Middle-earth without first pitching it to streaming platforms, the way Sarah J. Maas’s A Court of Thorns and Roses seems destined for adaptation?

The modern publishing ecosystem demands more than good writing. Authors are expected to maintain social media accounts, cultivate online communities, and create content that keeps algorithms happy. Books are no longer merely written; they are marketed continuously, often by the writers themselves.

The BookTok Phenomenon

BookTok, the literary corner of TikTok, has become a cultural force. With over 370 billion views, it has fundamentally altered how books are discovered, consumed, and celebrated. The platform has launched authors like Colleen Hoover, whose It Ends with Us sold over 8 million copies globally after going viral on BookTok. It has revived interest in classics: The Secret History by Donna Tartt, published in 1992, saw a 400% sales increase after BookTok creators championed it. It has even made books like My Year of Rest and Relaxation by Ottessa Moshfegh, a novel about a woman who tries to sleep for a year, a surprising bestseller.

BookTok’s influence extends beyond sales. It has created a new kind of reading community, one where books are not just read but performed. Creators film themselves crying over tragic endings, physically throwing books across the room, or meticulously annotating their favourite passages. Books are discussed in the language of shipping, fan theories, and character aesthetics. The reading experience has become communal, interactive, and deeply emotional.

But this new ecosystem comes with trade-offs. The algorithm rewards books that are “emotional” and “relatable,” often at the expense of literary complexity. The pressure to produce content can be overwhelming for authors. Some have reported feeling that they are performing for an audience rather than writing for themselves. The book itself can become secondary to the brand.

The Streaming Pipeline

The BookTok-to-streaming pipeline has become a well-oiled machine. Fourth Wing was optioned by Amazon before it was even published. A Court of Thorns and Roses has been in development at Hulu for years. My Year of Rest and Relaxation is being adapted for the screen by HBO. The logic is simple: a book with a passionate online following has a pre-built audience for its adaptation. Streaming platforms are betting that the emotional investment viewers have in the characters will translate into sustained viewing.

This has created a new kind of literary success. A book can be a bestseller, a viral sensation, and a streaming hit all at once. The boundaries between literature, entertainment, and commerce have blurred. Is Fourth Wing a novel, a film, or a brand? The answer is increasingly “all three.”

The Author in the Age of the Algorithm

The role of the author has also transformed. In the past, writers were expected to be reclusive, mysterious figures. Today, they are expected to be influencers. Brandon Sanderson, one of the most successful fantasy authors of the past decade, raised a record-breaking $41 million on Kickstarter, not by promoting a traditional book deal but by creating a direct relationship with his fans. He runs a YouTube channel, a podcast, and a thriving online community. He has become a brand as much as an author.

For some, this is liberating. It allows writers to bypass traditional gatekeepers and connect directly with readers. For others, it is a burden. The pressure to be constantly online can be draining, especially for those who chose writing precisely because it allowed them to work in solitude.

The Sustainability Question

The current literary ecosystem is not without its critics. There are concerns about homogenisation: is BookTok creating a monoculture where only certain kinds of books succeed? There are concerns about longevity: can an author sustain a career on a single viral hit? There are concerns about burnout: how long can writers continue to produce content at the required pace?

And there is the question of what happens when the algorithm changes. BookTok is a product of TikTok, a platform owned by ByteDance, a Chinese company. Its future is uncertain. If TikTok were to disappear or change its algorithm, the entire ecosystem could collapse overnight. Authors who have built their careers on the platform could be left stranded.

A Middle Ground?

Perhaps the answer is not to reject the algorithm but to find a way to coexist with it. Some authors are doing just that. They use BookTok and other platforms to promote their work, but they also write on their own terms. They are not slaves to the algorithm, but they are not ignoring it either.

There is also a growing movement to reclaim the literary novel within the BookTok space. Books like Normal People by Sally Rooney, My Brilliant Friend by Elena Ferrante, and The Neapolitan Novels have all found success on the platform. They are not fantasy or romance; they are literary fiction. BookTok may be dominated by certain genres, but it is not exclusively so.

What Would Austen Do?

Jane Austen wrote six novels in her lifetime, all of them about the marriage market and the constraints of class and gender. She was not a recluse, but she was not an influencer either. She wrote for herself and for her family, and she found her audience slowly, over decades.

If she were writing today, she might be on BookTok. She might be making videos about the challenges of being a woman in a society that demands you marry well. She might be sharing her thoughts on the latest adaptation of her work. She might be building a community of readers who love her wit, her irony, and her deep understanding of human nature.

But she would still be writing. She would still be creating characters who are flawed, complex, and utterly unforgettable. She would still be telling stories that matter. The medium might change, but the art endures.

So here stands the conflicted literature graduate — caught between the canon and the algorithm, between what once counted as respectable reading and the irresistible pull of BookTok. Perhaps I should pick up Tolstoy as a literary palate cleanser. And perhaps, just perhaps, I’ll also be quietly waiting for the Fourth Wing casting announcement.

Q&A

Q1: What is BookTok and why is it significant?

A1: BookTok is the literary community on TikTok, a platform where creators share book recommendations, reviews, and emotional reactions to books. With over 370 billion views, it has fundamentally transformed how books are discovered and consumed, launching authors like Colleen Hoover to global fame and reviving sales of backlist titles like The Secret History by Donna Tartt.

Q2: How does BookTok influence publishing and author careers?

A2: BookTok has created a new ecosystem where books are not just read but performed. Authors are expected to maintain a social media presence, cultivate communities, and create content to satisfy algorithms. While this can help bypass traditional gatekeepers, it also creates pressure to produce content that is “emotional” and “relatable,” often at the expense of literary complexity.

Q3: What is the connection between BookTok and streaming platforms?

A3: The BookTok-to-streaming pipeline has become a well-oiled machine. Books with viral followings, like Fourth Wing and A Court of Thorns and Roses, are quickly optioned for adaptation. Platforms bet that the existing emotional investment in the characters will translate into sustained viewing, turning books into multi-platform franchises.

Q4: What are the criticisms of the BookTok phenomenon?

A4: Critics raise several concerns: homogenisation (BookTok may create a monoculture where only certain books succeed), lack of longevity (can authors sustain careers on a single viral hit?), burnout (pressure to constantly create content), and vulnerability (the ecosystem is tied to TikTok’s algorithm, which could change or disappear). There are also concerns that the platform rewards books that are “emotional” and “relatable” at the expense of literary ambition.

Q5: What would the article’s author conclude about the future of literature?

A5: The author suggests that while the medium of consumption has changed—from the drawing-room novel to the BookTok video—the core of literature endures. The challenge is to find a way to coexist with the algorithm without being enslaved by it. Some authors are succeeding by using platforms for promotion while maintaining artistic integrity. Ultimately, great stories will continue to be told, even if they are also clipped, edited, and debated on social media.

Careful Planning Can Help India Take On Its Inflation Challenges

Not so long ago, the Indian economy was described by the finance ministry and the central bank as being in a ‘Goldilocks’ scenario, characterized by low inflation and high growth . The primary driver was a sustained period of low and declining inflation, which incidentally also led to higher real economic growth even though nominal growth had been decelerating . However, estimates of inflation in the last six months have placed a question mark on such claims .

The Shift in Price Dynamics

Consumer Price Index (CPI) data released this month confirmed apprehensions of inflation trending higher. Overall inflation was reported at over 3.9% for May, with rural inflation at nearly 4.3% outpacing the 3.5% urban inflation rate . The trend in food inflation was worrying, with its rural measure almost at 4.9% and urban just short of 4.7% . In both, food inflation outpaced overall inflation . Some of this was expected, given our supply disruptions amid the West Asia war, but inflation stayed under the Reserve Bank of India’s (RBI) 4% target . With the government passing on a limited rise in fuel prices, the transport sub-group saw only an inflation rate of just 1.75% .

However, estimates of the wholesale price index (WPI) released for May show significantly higher inflation at 9.7%, with a rising trend since April’s 8.3% . The WPI series, like other statistical indicators, has been updated to base year 2022-23 . Unlike the CPI data, its highest sub-group inflation rate was that for fuel at 30.3% . Wholesale food inflation was estimated at 4.5% but showed a faster rise (from 3.1% in April) than CPI estimates . However, what should worry policymakers is its sharp rise over the last six months. WPI inflation was a little over 1.7% in 2024-25, declining to 0.4% in 2025-26. Food inflation last fiscal year was -3.7%, a sharp drop from 7.5% the previous year. It was negative between June 2025 and January 2026, with the overall WPI reading staying negative from May 2025 to November 2025 .

Critical Takeaways for Policy

What CPI and WPI data confirm is that, first, the period until December 2025 was one of sustained low inflation . Second, a rise in inflation, including for food, was taking place even before the West Asia war started . And third, the significant divergence between WPI and CPI inflation in the last two months suggests inflationary pressures building up at the retail level, which are likely to be visible in the coming months .

The Looming Challenges

What is likely to be a challenge for the government is the anticipated increase in inflation as 2026-27 rolls on. While uncertainty over the West Asia war seems largely over, we still have to contend with supply shocks due to deficient monsoon rainfall amid a strengthening El Niño phenomenon . As of 23 June, rainfall was deficient by 43% compared to the long-term average . This is among the highest for June. Further, a recovery in the remaining monsoon months of July, August and September is unlikely to close that deficit sufficiently, given forecasts of El Niño worsening . The supply shocks from declining output will drive food inflation. An extended period of high temperature that is anticipated as a result of El Niño could hurt even the rabi (winter) agricultural crop, adding to price pressures .

Another driving factor is the rise in input costs. This is already visible in energy prices at the wholesale level that are likely to transmit to retail inflation . But input energy costs will also increase as farmers use more ground water for irrigation in the absence of adequate rainfall . Lastly, fertilizer shortages and their price increases are also likely to add to input costs . The extent of this cost-push inflation will depend on the progress of monsoon rains .

Strategic Government Response

The government’s challenge is not just to insulate India’s large population from a coming inflationary surge, but also ensure employment and growth. Given that inflationary pressures are being driven by food prices, monetary policies are unlikely to be of help . What is required is to ensure adequate supply of essential food items. While imports may be necessary in some cases, any ad hoc policy changes in trade policy or imposition of restrictions on domestic and external trade would be counter-productive .

Fortunately, crop output has been high in the last two years. This helped the government enhance its buffer stocks, which could ease some of the supply pressures . But policymakers must also ensure income and livelihood support in rural regions. With economic activity weakening even as incomes face uncertainty, it is also a good time to strengthen the country’s employment guarantee programme .

Q&A

Q1: What does the term “Goldilocks scenario” refer to in the context of the Indian economy?
A1: The “Goldilocks scenario” describes an economic environment characterized by a rare and favorable balance of high growth and low inflation, where the economy is expanding rapidly but prices remain stable, allowing the central bank to support growth .

Q2: What is the difference between CPI and WPI inflation, and why are both important?
A2: CPI measures the average change in prices paid by consumers for a basket of goods and services (retail inflation), while WPI tracks changes in prices at the wholesale level before goods reach consumers. The divergence between them—with WPI significantly higher than CPI—signals that producer-level inflationary pressures are building up and are likely to be passed on to consumers in the coming months .

Q3: Why is El Niño expected to worsen India’s inflation challenges?
A3: El Niño typically suppresses rainfall in India. With a 43% monsoon deficit already recorded, the agriculture sector is under severe stress. Lower rainfall reduces crop yields, especially for kharif crops like rice, pulses, and oilseeds, which directly drives up food prices. Extreme heat also hurts rabi crops, potentially prolonging the inflationary pressure beyond the monsoon season .

Q4: How do fertilizer shortages contribute to food inflation?
A4: India sources approximately 35% of its fertilizers from the Gulf region, and the West Asia conflict has disrupted supplies, causing prices to surge 50-80%. Fertilizers are critical for crop yields; when farmers apply less fertilizer due to high costs or scarcity, crop output declines, reducing supply and pushing up food prices .

Q5: What policy measures can the government take to mitigate these inflation risks?
A5: The government can utilize its buffer stocks of rice and wheat to stabilize supplies, ensure adequate seed and fertilizer availability for vulnerable districts, promote alternative crop strategies and short-duration varieties in rain-fed areas, strengthen rural employment programs to support incomes, and avoid ad hoc trade restrictions that could worsen supply conditions .

Why India Should Chill with Chile: A Strategic Partnership for the Critical Mineral Age

As the world accelerates towards a future powered by electric vehicles, artificial intelligence, and vast data centres, the battle for critical minerals has become the defining geopolitical contest of the 21st century. For India, a nation with ambitious climate goals and a rapidly digitizing economy, securing a reliable and sustainable supply of resources like lithium and copper is not just an economic necessity but a cornerstone of its strategic autonomy.

Enter Chile. This slender, stable nation on the western edge of South America is not merely a distant friend; it is the world’s second-largest producer of lithium, holds the globe’s largest reserves of the “white gold,” and is a behemoth in copper production . As India and Chile enter the decisive leg of negotiations for a Comprehensive Economic Partnership Agreement (CEPA), the case for a deep and enduring partnership has never been stronger .

Critical Minerals: The Foundation of a Future-Ready India

India’s economic ambitions are built on a foundation of critical minerals. The country currently imports 100% of its lithium, a key component in batteries for electric vehicles and energy storage systems . As India expands its semiconductor industry, builds data centres to fuel its AI revolution, and transitions to a green economy, the demand for these minerals will skyrocket . According to Chilean Foreign Minister Francisco Pérez Mackenna, the AI revolution will have a much greater impact on the global economy than many anticipate, drastically increasing the demand for copper—an essential component for electrification and data transmission .

Chile offers a solution. The country holds over 20% of the world’s copper reserves and approximately 30% of global lithium reserves . A partnership with Chile is not just about extraction; it is about securing long-term supply chains and integrating value chains for the products that will power the future . India is seeking favourable, long-term access to critical mineral exploration blocks to secure its supply chains for EVs and advanced electronics . In turn, Chile is looking for partners who can help create a long-term value chain, moving beyond mere extraction to processing, technology partnerships, and joint ventures .

Beyond Mining: A Gateway to the Western Hemisphere

Chile’s appeal extends far beyond its mineral wealth. It is one of the most commercially integrated nations on the planet, with a network of 36 trade agreements spanning 66 economies and covering over 80% of global GDP . This makes Chile a secure and reliable gateway for Indian companies, products, and services seeking to penetrate markets across the western hemisphere—a region where Chile shares the same time zone with all major economies .

The country’s “Chile” slogan is a testament to its ambition . It offers a stable rule of law, a developed banking system, low country risk, and a no-hassle repatriation of capital or dividends . For Indian investors, these are not just buzzwords but concrete assurances that make Chile an excellent alternative for investment.

The CEPA: A Two-Way Street

The India-Chile CEPA, currently under negotiation, is designed to build upon an existing Preferential Trade Agreement and unlock the full potential of the bilateral relationship . With four rounds of talks already completed and both sides aiming to conclude the agreement this year, the momentum is palpable . Commerce and Industry Minister Piyush Goyal has expressed optimism that a deal could be finalised if both sides can structure a mutually beneficial arrangement on critical minerals .

Key Pillars of the Partnership:

Critical Minerals: Securing India’s supply of lithium and copper to drive its green transition and tech sector .
Investment and Technology: Chile is keen to attract Indian investment in its mining sector and to benefit from India’s vast pool of skilled engineers to help build its burgeoning tech ecosystem, positioning itself as the “Silicon Valley of South America” .
Trade Integration: Leveraging Chile’s extensive FTA network to provide Indian businesses with a strategic launchpad into the Americas .
Human Capital: Chile sees India’s qualified human capital as a potential driver of its own innovation clusters .

The “Chill” Factor: A Shared Vision for Stability

Chile’s political and economic stability is a key asset in a world of growing uncertainty. With one of the highest per capita incomes in the Latin American region and a consistent record of open economic policies, Chile provides a stark contrast to the volatility often associated with other resource-rich nations . As the new Chilean Foreign Minister noted, “India should have a very important role in being a great partner, both for the present in terms of goods and services, but also for the future in terms of tech” .

For India, “Chilling with Chile” is not about a one-way extraction of resources. It is about building a resilient, long-term partnership that can withstand geopolitical shocks, diversify supply chains, and create mutual prosperity.

Q&A

Q1: Why are critical minerals like lithium and copper so important for India?

A1: Lithium is a key component in batteries for electric vehicles and energy storage systems, essential for India’s green transition. Copper is fundamental for electrification, data transmission, and the infrastructure needed for AI and data centres. India currently imports 100% of its lithium, making secure supply chains a strategic imperative.

Q2: What is the status of the India-Chile CEPA negotiations?

A2: The negotiations are in their decisive leg, with four rounds already completed. India and Chile are aiming to conclude the Comprehensive Economic Partnership Agreement (CEPA) in 2026, building upon the existing Preferential Trade Agreement. The focus is on creating a balanced, forward-looking agreement covering goods, services, and investment.

Q3: How can Chile serve as a “gateway” for Indian businesses?

A3: Chile has one of the world’s most extensive networks of trade agreements, covering over 80% of global GDP. This network allows Indian companies to use Chile as a strategic hub to export their products and services to markets across the Americas and the Pacific region with reduced tariffs and easier access.

Q4: What does Chile offer beyond minerals?

A4: Chile offers a stable and open economy, a solid rule of law, a developed banking system, and a new business-friendly visa system. The country is also investing in innovation and digital infrastructure, actively seeking to attract Indian talent and investment in its growing technology sector, positioning itself as the “Silicon Valley of South America.”

Q5: What is the primary challenge in finalising the CEPA?

A5: The primary challenge is structuring a mutually beneficial arrangement on critical minerals, including ensuring long-term access to mining concessions and exploration blocks for Indian companies. Both sides are working to find “innovative solutions” that balance India’s need for supply security with Chile’s goal of developing a long-term value chain and attracting investment.

Aim for Trusted Interdependence: India’s Evolving Defence Industrial Strategy

India’s defence industrial strategy has undergone a significant evolution over the past decade, transitioning from import-dependent modernisation to a comprehensive vision of self-reliance through domestic design, development, and manufacturing. This journey has been marked by distinct phases, each building on the lessons of the previous one, and is now culminating in a sophisticated framework that balances indigenous capacity-building with strategic international partnerships. The core of this new approach is the pursuit of “trusted interdependence”—a model where India leverages its position as one of the world’s largest defence markets to build mutual dependencies with friendly nations, while aggressively pursuing access to critical technologies, intellectual property, and system controls .

The Evolution: From ‘Make in India’ to ‘Aatmanirbharata’ and Beyond

The Modi government’s defence industrial strategy has evolved through distinct phases, each progressively raising the ambition for domestic capability .

Phase 1: ‘Make in India’ (2014 onwards): This phase focused on building local capacities. Defence industrial corridors were established, licensing norms were simplified, and Foreign Direct Investment (FDI) limits were raised from 26% to 49% under the automatic route to encourage global defence manufacturers to invest in India .
Phase 2: ‘Aatmanirbharata’ (2020 onwards): Under this phase, imports were discouraged through positive indigenisation lists designed to protect domestic industry . Over 5,500 items have been notified under five positive indigenisation lists, with more than 3,000 already indigenised . Procurement policies were increasingly tilted towards indigenously designed, developed, and manufactured military equipment. Minimum indigenous content requirements replaced defence offsets, and FDI limits were further raised to 74% to encourage foreign firms to transfer technologies into their majority-owned and controlled joint ventures in India .
Phase 3: The Upcoming Defence Acquisition Procedure (DAP) 2026: The revised DAP 2026, awaiting Ministry of Defence (MoD) approvals, marks a strategic shift from a ‘Made in India’ approach to an ‘Owned by India’ one . The focus is on critical technologies to be “owned by India”, with greater emphasis on Indian ownership of intellectual property (IP), source code, critical design data, and upgrade authority . This is reflected in changes to the indigenous content (IC) framework, which resets India’s defence offset architecture that has largely failed to deliver meaningful technology transfers .

India’s progress under these policies has been substantial. Defence production in India increased more than three times over the last 10 years, reaching an all-time high of Rs 1.54 lakh crore in 2024-25 . Defence exports surged to a record Rs 23,622 crore in FY25, compared to less than Rs 1,000 crore in 2014 . The private sector’s contribution rose to nearly 23% of total defence production . India has proved it can indigenously design and build increasingly sophisticated military platforms, from nuclear-powered submarines (Arihant-class) and an aircraft carrier (INS Vikrant) to 4th-gen Light Combat Aircraft (Tejas) and advanced artillery guns (ATAGS) .

The Enduring Challenge: Critical Technological Gaps

Despite these significant strides, substantial technological gaps persist. The most persistent and consequential challenge lies in propulsion technology . Engines for battle aircraft, battleships, and battle tanks continue to rely on foreign technology. These are capabilities that cannot be acquired through protectionist policies or procurement preferences alone, but only through collaborative co-development .

India’s struggle to develop a homegrown jet engine is emblematic of this challenge. Launched in 1986, the Kaveri engine project aimed to power the LCA Tejas but was shelved in 2011 after failing to meet performance requirements . With nearly 30,000 components operating under extreme temperatures, mastering this technology takes decades. Nations like the US, Russia, or France took 30 to 35 years to master this technology . The project’s failure underscored that critical technologies such as single-crystal turbine blades and specialised bearings were not available in India, and no country was willing to share these core technologies .

The Collaborative Path Forward: Key Partnerships

India is now pursuing a multi-pronged strategy to fill these technological gaps through a series of strategic international collaborations, while maintaining Indian ownership of critical IP.

1. The Indo-French Partnership with Safran:

This represents the most significant breakthrough. Safran, the French manufacturer of the M88 engine that powers the Rafale, has agreed to co-develop a brand-new 120-140 kN jet engine with India for its 5th-generation Advanced Medium Combat Aircraft (AMCA) . The scope is unprecedented. The agreement includes 100% technology transfer, complete intellectual property rights for India, and full ownership of the engine’s core technology, including the most sensitive “hot sections” . Importantly, the technology is expected to be ITAR-free, with no US export controls . The programme is estimated to be worth around $7 billion . The primary challenge lies in whether India can effectively absorb and advance this transferred technology when the French engineers eventually leave .

2. The Indo-British Partnership with Rolls-Royce:

Britain’s Rolls-Royce has reiterated its offer to co-develop the AMCA jet engine, and reportedly proposed full tech transfer with Indian IP . The company offers a unique advantage in its ability to “marinise” aero engines for naval applications, potentially leveraging the same core technology for future Indian Navy platforms . Rolls-Royce has proposed to co-design, co-create, and co-produce electric-powered engines, initially for landing platform docks (LPDs), and potentially for next-gen destroyers and future frigates . However, current restrictions within the MoD, which limit Rolls-Royce to operational support on existing platforms, may make such collaborations more complicated .

3. Indo-US Collaboration:

The US appears increasingly willing to deepen defence industrial collaboration with India. Recent discussions have included co-production of US Javelin anti-tank guided missiles (ATGM). Although not strictly a co-development programme, its success most likely lies in whether Indian industry can independently maintain, upgrade, and develop future variants of the system .

The Balance: Trusted Interdependence

New Delhi seeks maximum technology transfer, minimum export controls, high levels of indigenous content, and meaningful IP rights in its defence collaborations. However, there are limits to what foreign partners are likely to offer. Advanced defence technologies remain closely guarded national assets, and foreign firms are unlikely to part with their most sensitive ‘gold box’ technologies .

The success of India’s emerging defence industrial strategy will ultimately depend on a delicate balancing act . New Delhi should remain a key partner with foreign governments and defence manufacturers, using one of the world’s largest defence markets, expanding industrial base, and increasingly integrated supply chains to build mutual dependencies. At the same time, it must aggressively pursue greater access to critical technologies, IP, and system controls. Achieving both won’t be easy. But if managed well, trusted interdependence may offer the most practical path to self-reliance in defence .

Q&A

Q1: What is the primary shift in India’s defence procurement strategy with the upcoming Defence Acquisition Procedure (DAP) 2026?

A1: DAP 2026 marks a strategic shift from a ‘Made in India’ approach to an ‘Owned by India’ one . The focus is on critical technologies to be “owned by India”, with greater emphasis on Indian ownership of intellectual property (IP), source code, critical design data, and upgrade authority . This represents a significant evolution from earlier policies that primarily focused on manufacturing and assembly.

Q2: Why has India’s indigenous Kaveri engine project been a challenge for achieving self-reliance in defence?

A2: Launched in 1986, the Kaveri engine project was shelved in 2011 after failing to meet performance requirements, particularly in thrust . Modern jet engines have nearly 30,000 components operating under extreme conditions, requiring decades of research and testing . Critical technologies such as single-crystal turbine blades and specialised bearings were not available in India at the time, and no country was willing to share these core technologies . The project’s failure highlighted that advanced propulsion capabilities cannot be developed in isolation.

Q3: What makes the Indo-French partnership with Safran for the AMCA engine significant?

A3: The Safran partnership is unprecedented because it involves the co-development of a brand-new 120-140 kN jet engine for India’s 5th-generation AMCA with full technology transfer . Crucially, the agreement includes 100% transfer of technology for the most sensitive “hot sections” (turbine blades and combustion chambers), full intellectual property rights for India, and no US export controls . This marks a sharp departure from previous offers where sensitive technologies were withheld.

Q4: What is “trusted interdependence” in the context of India’s defence strategy?

A4: “Trusted interdependence” is a model where India leverages its position as one of the world’s largest defence markets, expanding industrial base, and increasingly integrated supply chains to build mutual dependencies with foreign partners . While aggressively pursuing greater access to critical technologies, IP, and system controls, India maintains a delicate balance of cooperation and self-reliance .

Q5: What is Rolls-Royce’s specific advantage in defence collaboration with India, beyond fighter jet engines?

A5: Rolls-Royce has a unique technical advantage in its ability to “marinise” aero engines for naval applications . This complex engineering process involves adapting a fighter jet engine core for use in marine gas turbines, which power modern naval warships . If India partners with Rolls-Royce for the AMCA, the same core technology could be leveraged to create indigenous propulsion solutions for the Indian Navy, with a shared industrial ecosystem serving both sectors .

The Path to Freedom: Towards a Drug-Free India

As the world observes the International Day Against Drug Abuse and Illicit Trafficking on June 26, India confronts a challenge that strikes at the very heart of its future. Substance abuse is not merely a social or health-related problem; it is a grave matter linked to the nation’s security, economic prosperity, and the well-being of its youth. With the largest youth population in the world, India’s greatest asset—its Yuva Shakti—is also its most vulnerable. The fight against drugs is not just a government programme; it is a mass movement aimed at empowering India’s youth, strengthening family structures, and building national consciousness.

The Scale of the Challenge

The numbers are alarming. According to government estimates, over 370 million Indians consume one form of intoxicant or another, with hundreds of thousands dying every year due to the health and social consequences of addiction . The Ministry of Social Justice and Empowerment’s National Survey on the Extent and Pattern of Substance Use in India revealed that alcohol is the most commonly used substance, with nearly 160 million people aged between 10 and 75 currently consuming it . Around 31 million people use cannabis, while opioid use (including heroin and smack) affects more than two per cent of the population. Shockingly, 8.5 lakh people inject drugs .

The human cost is staggering. The World Health Organization (WHO) estimates that smoking, alcohol, and substance abuse together are responsible for more than 9,00,000 deaths annually in India . According to a 2024 WHO report, alcohol-related mortality in India stands at 38.5 deaths per 1,00,000 population—significantly higher than China’s 29.6 . National Crime Records Bureau (NCRB) data shows that 978 people died due to drug overdoses in 2024, up from 654 in the previous year .

The crisis is not confined to a few border states or isolated communities. From Punjab’s opioid crisis to rave parties in Kerala, from heroin routes linked to the Golden Crescent and Golden Triangle to opium networks operating under the cover of highway eateries, the menace has evolved into a national challenge affecting millions of young Indians and their families .

The Youth: India’s Greatest Asset and Greatest Vulnerability

India’s youth population is its greatest asset in the ‘Amrit Kaal’. If this power is channelled into education, skills, innovation, and nation-building, nothing can stop India from becoming a ‘Vishwa Guru’. But if the youth fall into the addiction of drugs, it will be a loss not just to one generation but to the future of the nation .

The age of initiation is alarmingly low. A study published in The National Medical Journal of India, which surveyed 6,000 school children in 10 Indian cities, found that the average age of children inducted into usage of narcotic substances is 12.9 years . The study revealed that 15.1 percent of preteen children reported having used a banned narcotic substance at least once. Especially alarming, 31 percent of child substance abusers indicated high levels of psychological distress .

A study of adolescent boys in a rehabilitation centre found that the mean age of first use of nicotine, alcohol, and cannabis was 12.1, 13.6, and 14.3 years, respectively . The study also found that 57.6% were from broken families, 59.3% had experienced childhood adversities, and 49.2% had a parental psychiatric history . Earlier onset of substance use was significantly associated with lower socioeconomic status and poor parental supervision .

The economic impact is equally devastating. A study across Punjab, Haryana, Himachal Pradesh, Rajasthan and Jammu and Kashmir found that an average drug user spends nearly Rs 2,000 every day on narcotics . In Jammu and Kashmir, a survey found heroin users spending close to Rs 88,000 every month . Families sink deep into debt, jewellery is sold, land is mortgaged, and relationships fall apart under the weight of addiction.

Nasha Mukt Bharat Abhiyan: A Mass Movement

Launched on August 15, 2020, the Nasha Mukt Bharat Abhiyan (Drug-Free India Campaign) has today become a people’s movement . The campaign was initially launched in 272 of the most vulnerable districts but has since been extended to all districts of the country . According to Union Minister Virendra Kumar, the campaign has reached out to over 25 crore people to create awareness among the youth about drug abuse .

The campaign is built on the principle that success is ensured only when society becomes its driving force. India’s greatest strength is its social and cultural consciousness—its families, its values, its community traditions, and its social solidarity . The campaign mobilises millions of youths, students, women, teachers, and voluntary organisations. From villages to metropolises, from schools to universities, and from digital platforms to community events, a widespread public awareness against substance abuse has emerged .

Key Initiatives Under the Campaign:

Nasha Mukt Bharat Saptah (17–26 June 2026): A week-long observance under the theme “Nasha Mukt Bharat Abhiyaan – Viksit Bharat Ki Pehchaan” . Union Minister for Social Justice and Empowerment Dr. Virendra Kumar inaugurated the Saptah, launching a Personal Dashboard for Nasha Mukti Mitra (NMM) volunteers and a short film on the campaign .
National Nasha Mukti Quiz: Launched on the MY Bharat portal, the quiz aims to encourage young people to enhance their awareness of the harmful effects of substance abuse while promoting informed choices and a healthy, drug-free lifestyle .
Helpline 14446: A toll-free helpline has been started for providing primary counselling and immediate referral services to persons seeking help for de-addiction .
Community Outreach: Awareness camps, pledge drives, rallies, youth engagement programmes, webinars, and cultural activities are regularly conducted across the country .

Enforcement and Supply Reduction

The government has taken decisive steps to curb the supply of substances. The Narcotics Control Bureau and various security agencies have dismantled numerous international smuggling networks through coordinated action. Surveillance at the borders has been strengthened, and strict action has been taken against organised crime . Drug trafficking is not merely a crime; it is often linked to anti-national activities and the financing of terrorism. Therefore, this struggle against drug trafficking is also a struggle for national security .

The results of enforcement efforts are visible. In Andhra Pradesh, coordinated efforts resulted in 157 convictions under the NDPS Act between January 1, 2025, and February 6, 2026 . In Himachal Pradesh, police executed 15 preventive detention orders against habitual narcotics traffickers under the PIT NDPS Act . Courts in Kangra and Tripura have sentenced drug traffickers to five years of rigorous imprisonment and fines .

The Way Forward: A Whole-of-Society Approach

The success of any law or government campaign is ensured only when society becomes its driving force . India’s greatest strength is its social and cultural consciousness.

The Role of Families: Families are the first and most important unit of this fight. If parents maintain open communication with their children, become their friends, and keep a watchful eye on changes in their behaviour, the problem of substance abuse can be prevented at an early stage .

The Role of Schools and Colleges: Educational institutions must play an active role in fostering self-confidence, positive thinking, and a healthy lifestyle among the youth. Teachers need to be trained to identify at-risk students, and students need to be sensitised about peer pressure and coping mechanisms .

The Role of Women: Mothers, sisters, Self-Help Groups, Anganwadi workers, and women’s organisations have played a significant role in spreading awareness and taking care of families. Their contribution to building a drug-free India is invaluable .

Changing Attitudes Towards Recovery: Society must change its attitude towards those who have recovered from addiction. A person should be judged not by his past, but by his efforts to improve. The rehabilitation process can be truly successful only if society accepts and encourages them and provides them with opportunities to move forward .

Psychiatry as a Pillar of Care: The integration of psychiatric services into public health has been a major achievement of the campaign. In Jammu, for instance, psychiatry departments have been strengthened, de-addiction centres have increased capacity, and tele-psychiatry services have been introduced . Yet, challenges remain—stigma, infrastructure gaps, and manpower shortages need to be addressed .

Conclusion: A National Resolve

The fight against drugs is the responsibility of every Indian . On the occasion of World Drug Day, the call is to every citizen of the country, especially the youth, to become a part of this national campaign. If every citizen resolves to keep even one person away from substance abuse, millions of lives could be saved .

Under the leadership of Prime Minister Narendra Modi, the Nasha Mukt Bharat Abhiyan is not merely a government programme but a mass movement aimed at empowering India’s youth power, family structure, and national consciousness . The campaign has reached over 25 crore people, mobilised thousands of volunteers, and created widespread awareness. But the journey is far from complete. It is a work in progress, marked by both achievements and challenges .

Let us come together to turn this invocation into a mass resolve and move forward together towards a drug-free India, for the sake of building a developed India. It is the national resolve of 140 crore countrymen. This very resolve will serve as a strong foundation for the building of Viksit Bharat .

Q&A

Q1: What is the Nasha Mukt Bharat Abhiyan and when was it launched?

A1: The Nasha Mukt Bharat Abhiyan (Drug-Free India Campaign) is a nationwide mass awareness and community mobilisation campaign launched by the Government of India on August 15, 2020 . Initially launched in 272 of the most vulnerable districts, it was later extended to all districts of the country in 2023 . The campaign aims to create awareness about substance abuse, mobilise community participation, and reduce drug demand across India.

Q2: What is the scale of the drug problem in India?

A2: According to government estimates, over 370 million Indians consume one form of intoxicant or another . Alcohol is the most commonly used substance, with nearly 160 million users. Around 31 million people use cannabis, and opioid use affects more than two per cent of the population . Smoking, alcohol, and substance abuse together are responsible for more than 9,00,000 deaths annually in India . The average age of initiation into drug use is alarmingly low, with studies indicating around 12.9 years .

Q3: What are the key initiatives under the Nasha Mukt Bharat Abhiyan?

A3: Key initiatives include the Nasha Mukt Bharat Saptah (a week-long observance from June 17-26), the National Nasha Mukti Quiz on the MY Bharat portal, a toll-free Helpline 14446 for counselling and referral services, and the Personal Dashboard for Nasha Mukti Mitra volunteers . The campaign also conducts awareness camps, pledge drives, rallies, school and college programmes, and community outreach activities across the country .

Q4: What is the role of enforcement in the fight against drugs?

A4: The government has strengthened enforcement through the Narcotics Control Bureau and other security agencies, which have dismantled international smuggling networks and enhanced border surveillance . Drug trafficking is linked to anti-national activities and the financing of terrorism, making this a matter of national security. Recent successes include 157 convictions in Andhra Pradesh under the NDPS Act , and 15 preventive detentions of habitual traffickers in Himachal Pradesh under the PIT NDPS Act .

Q5: How can society contribute to a drug-free India?

A5: Society’s role is crucial. Families must maintain open communication with children and monitor changes in behaviour . Schools and colleges should foster healthy lifestyles and train teachers to identify at-risk students . Women’s groups and Self-Help Groups have been effective in spreading awareness . Society must also change its attitude towards those who have recovered from addiction, providing acceptance and opportunities for reintegration . The success of the campaign ultimately depends on a whole-of-society approach .

When the Distinction Between Performance and Authenticity Blurs: The Quiet Crisis of Modern Life

A recent WhatsApp communication on our society group, a few cryptic comments on my Facebook wall, and several recent premature deaths among people in their mid-fifties have made me pause and reflect. At first glance, these incidents appear unrelated. A camp was organised by our newly elected governing body to facilitate certain services for residents. It was a good initiative with a few inevitable hiccups. Many appreciated the effort, while some expressed disappointment. One resident urged the President of the Residents’ Welfare Association to personally address such irritants in future. What caught my attention, however, was the response of another well-meaning resident who rushed to defend the President while assigning blame to the committee member who organised the event. In corporate and public life, leadership is often defined by the willingness to absorb criticism while sharing credit. In our increasingly polarised environment, criticism and defence seem to attach themselves not to actions but to individuals.

A few days later, a neighbour chose to respond to one of my articles on social media with comments such as ‘writing for publicity’ and ‘pathetic’. Interestingly, in face-to-face interactions, he remains polite and courteous. I also found myself reflecting on the untimely deaths of several talented individuals in their fifties. People who still had much to contribute, both professionally and personally. I do not suggest that these losses can be explained by technology or social media. They did, however, make me reflect on the various pressures that modern life places upon us, often in ways we scarcely recognise.

The Lost Sanctuary of Private Life

For much of human history, there existed a degree of separation between our public and private selves. Most people encountered a limited version of us. Public life usually required us to present our better selves. Our frustrations, contradictions, and unguarded moments remained largely within private spaces shared with those close to us. This separation served a vital psychological function. It allowed us to rest from the labour of performance. It gave us spaces where we could be imperfect, uncertain, and unpolished. These private spaces were not merely physical; they were psychological sanctuaries where identity was not under constant scrutiny. They were places where we could think without the pressure of immediate response, where we could feel without the demand for explanation.

Digital technology has altered that arrangement fundamentally. Public life now accompanies us throughout the day. Opinions are formed instantly, reactions are displayed immediately, and disagreements are preserved indefinitely. The audience is always present. Moments of genuine solitude have become increasingly rare. The distinction between public and private life has become increasingly blurred. What earlier generations experienced in private is now expressed, displayed, and debated in public spaces. Perhaps this is why civility appears more fragile. The pace of communication has accelerated, while reflection has not. We have acquired unprecedented tools for expression, but not necessarily the habits of restraint, patience, and perspective required to use them wisely. Technology has amplified our voices; it has not always deepened our understanding.

In such an environment, the distinction between performance and authenticity also begins to blur. The person we present to the world and the person we are in our unguarded moments are expected to coexist continuously. Social approval, criticism, validation, and comparison have become part of everyday life in ways previous generations never experienced.

The Psychology of Digital Exposure

The psychological toll of this permanent performance is significant and often unacknowledged. When our opinions, reactions, and disagreements are preserved indefinitely online, we lose the ability to revise, to change our minds, to grow without the weight of our past words following us. The permanence of digital expression creates a paradox: we are expected to be consistent, yet we are human, and humans are inconsistent. We learn, we evolve, we have bad days, we see things differently with time. But online, our past selves are frozen in place, and we are held accountable to versions of ourselves we may no longer recognise.

This phenomenon is not limited to public figures or celebrities. It affects ordinary people in their everyday interactions. A neighbour who is polite in person feels emboldened to be harsh on social media. A committee member who performs a service is criticised not for the quality of the service but for the identity of the person who provided it. Criticism and defence attach themselves not to actions but to individuals. This is a sign of a deeper shift: we have moved from evaluating what people do to evaluating who they are. Performance and personhood have become indistinguishable.

The pressure of this constant performance is not evenly distributed. Those who are more visible—whether by choice or circumstance—bear a disproportionate burden. Public figures, community leaders, and even those who express opinions online are subject to a level of scrutiny that previous generations could not have imagined. The expectation is not merely that we are competent but that we are consistently, unwaveringly competent. There is no room for a bad day, a moment of weakness, or a single unguarded comment. The performance must be flawless, and it must be maintained at all times.

The Cost of a Permanent Audience

The consequences of this pressure are becoming visible in alarming ways. The untimely deaths of talented individuals in their fifties are not merely statistical anomalies. They reflect a broader crisis of well-being that is often invisible until it is too late. The pressures of modern life—the constant connectivity, the relentless demand for performance, the erosion of private space—take a toll that is difficult to measure but impossible to ignore. Stress, anxiety, and burnout have become endemic. The WHO estimates that workplace stress alone costs the global economy over $1 trillion annually in lost productivity. In India, a survey by the Indian Psychiatric Society found that nearly 1 in 5 Indians suffer from depression, a figure that has been rising steadily over the past decade.

The relationship between digital exposure and mental health is increasingly well-documented. Studies have shown that heavy social media use is associated with increased rates of depression, anxiety, and loneliness. The constant comparison with curated versions of others’ lives creates a sense of inadequacy. The permanent record of our own words and actions creates a sense of entrapment. The immediacy of public reaction creates a sense of urgency that leaves no room for thoughtful reflection. We have become, in the words of one commentator, a society that is “hyper-connected but deeply lonely.”

Rediscovering the Value of Private Space

Perhaps this is one of the defining psychological challenges of our age. Technology has connected us more extensively than ever before, but it has also made performance a permanent condition of modern life. We are simultaneously participants, audiences, and subjects. There may be value in rediscovering something that earlier generations understood instinctively: the importance of spaces where one is not performing, responding, or being observed. Spaces where one can simply be. While technology has succeeded in bringing the world closer to us, it may also have made it harder for us to find distance from the world.

This is not a call to abandon technology. The benefits of connectivity are real and substantial. But we must recognise that the tools we use have consequences. They shape not only how we communicate but also how we think, feel, and relate to one another. They create expectations that we are not always able to meet. They demand a performance that we are not always able to sustain. They expose us to a level of scrutiny that we are not always able to bear.

The Way Forward: Towards a More Humane Digital Culture

The challenge is to find a balance. To use technology without being used by it. To express ourselves without being defined by our expressions. To engage with the world without losing ourselves in the process. This requires, first and foremost, a recognition of the problem. We must acknowledge that the blurring of performance and authenticity is not just a technological issue but a human one. It is about how we live our lives, how we treat one another, and how we protect our own well-being.

We need to create spaces for reflection. This might mean setting aside time each day to disconnect from digital devices and sit with our thoughts. It might mean having conversations that are not mediated by screens. It might mean simply being still, without the pressure to produce, respond, or perform. We need to cultivate the habits of restraint, patience, and perspective that are so often lacking in our digital lives. This means thinking before we post, allowing ourselves time to reflect before we respond, and recognising that our words have power even when they are delivered from a distance. We need to reclaim the distinction between public and private life. Not everything needs to be shared. Not every thought needs to be expressed. Not every opinion needs to be defended. The ability to hold something back, to keep it for ourselves, is not a weakness but a strength. It is a recognition that we are more than our public selves, and that our private selves deserve protection.

We also need to extend compassion to others, especially those who are more visible than ourselves. Public figures, leaders, and even those who express opinions online are human beings. They have good days and bad days. They make mistakes. They deserve the same understanding and forgiveness that we would want for ourselves. This does not mean we should not hold them accountable. But it does mean that we should hold them accountable with humanity, recognising that they are not just performers but people.

Conclusion: A Quiet Revolution

The blurring of performance and authenticity is one of the defining challenges of our age. It affects how we relate to one another, how we see ourselves, and how we navigate the complex pressures of modern life. But it is not an inevitable condition. It is a consequence of choices we have made, and it can be addressed by choices we can make. The revolution begins not with grand pronouncements but with small, deliberate actions: a moment of silence, a kind word, a decision to disconnect. These are not grandiose gestures. But they are, perhaps, the only gestures that matter. In the words of the writer, there may be value in rediscovering something that earlier generations understood instinctively: the importance of spaces where one is not performing, responding, or being observed. Spaces where one can simply be. This is the quiet revolution that our age so urgently needs.

Q&A

Q1: What does the article identify as the fundamental change brought about by digital technology in our lives?

A1: The article argues that digital technology has blurred the historical distinction between our public and private selves. Previously, there was a separation; public life required us to present our “better selves,” while our frustrations and unguarded moments remained private. Technology has made public life a continuous condition, eliminating psychological sanctuaries and making performance a permanent requirement.

Q2: According to the article, how has digital communication affected the way we respond to others?

A2: The article observes that the pace of communication has accelerated while reflection has not. This has led to a more fragile civility, where reactions are immediate and disagreements are preserved indefinitely. Criticism and defence now attach themselves to individuals rather than actions, polarising interactions and making it harder to separate performance from personhood.

Q3: What psychological challenges does the permanent performance of modern life create?

A3: The article highlights that the constant demand for performance and visibility contributes to stress, anxiety, and burnout. It erodes the ability to be imperfect and creates pressure for flawless, consistent behaviour at all times. The article also connects this to a broader crisis of well-being, noting that heavy social media use is linked to increased rates of depression and loneliness.

Q4: What solution does the article propose for this crisis?

A4: The article suggests rediscovering the value of private spaces where one is not performing, responding, or being observed. It calls for cultivating habits of restraint, patience, and perspective; creating time for reflection; and recognising that not every thought needs to be expressed. It also emphasises the importance of extending compassion to others, including public figures, as a way to humanise our digital interactions.

Q5: What is the significance of the recurring observation about people in their mid-fifties?

A5: The author uses the untimely deaths of talented individuals in their fifties as a catalyst for reflection on the pressures of modern life. These losses are not attributed to technology itself but are seen as reminders of the various pressures—including the constant performance demanded by digital life—that modern existence places on people, often in ways that are not immediately recognised. This observation grounds the broader philosophical argument in a tangible human reality.

Small Modular Reactors: Promise, Progress, and Risks in India’s Energy Transition

For countries such as India, where electricity demand continues to rise and the imperative to decarbonise grows ever more urgent, Small Modular Reactors (SMRs) offer an intriguing but highly uncertain path forward. The technology’s future will depend not on its theoretical promise, but on whether governments and industry can demonstrate that it can be deployed safely, affordably and at scale. As the global energy landscape evolves, SMRs have emerged as one of the most discussed technologies—promoted as a cleaner and more flexible alternative to conventional nuclear power plants, and increasingly viewed as a potential complement to renewable energy systems. Yet despite growing policy enthusiasm and a long list of announced projects, commercial deployment remains limited, highlighting the importance of assessing both their promise and their risks.

Understanding Small Modular Reactors

SMRs are generally defined as nuclear reactors with a capacity of up to 300 MW per unit . Unlike conventional nuclear plants, which are typically built as large, site-specific projects, SMRs are designed for factory-based manufacturing and modular deployment. Their smaller size allows capacity to be added incrementally, reducing upfront capital requirements and potentially shortening construction timelines. Advocates argue that this approach could make nuclear energy more accessible and financially manageable, particularly for countries with moderate demand growth or constrained fiscal resources .

The growing interest in SMRs is closely linked to the changing structure of electricity systems. Rapid expansion of solar power has created a familiar challenge in many countries: abundant electricity during daylight hours but shortages during evening peak demand. Wind power, while valuable, remains variable. In this context, SMRs offer a source of firm, low-carbon electricity capable of operating around the clock and supporting grid stability when renewable generation is unavailable . Their role is therefore not to replace renewable energy but to complement it by providing reliable power when needed.

SMRs are also being explored as a tool for industrial decarbonisation and the repurposing of retiring coal-fired power plants. Many coal sites already possess transmission connectivity, cooling infrastructure and skilled workforces, making them attractive locations for future deployment. Beyond electricity generation, several advanced SMR designs can provide industrial process heat, district heating and hydrogen production, broadening their potential contribution to energy-transition strategies .

The Global Landscape: Momentum and Reality

The gap between ambition and reality remains striking. As of the end of 2025, only two SMR projects worldwide are operating commercially for electricity generation . The first is Russia’s Akademik Lomonosov, a floating nuclear power plant located in the Arctic town of Pevek. Equipped with two small pressurised-water reactors producing about 70 MW of electricity, it has been supplying power and district heating since 2020. The project demonstrated that nuclear generation can be deployed in remote regions, but it also highlighted challenges related to marine safety, security and emergency response .

The second operational project is China’s HTR-PM at Shidao Bay. This high-temperature gas-cooled reactor, producing approximately 210 MW of electricity, entered commercial operation in 2023. It represents the world’s first grid-connected advanced SMR using non-light-water technology and is widely regarded as an important milestone for future industrial heat and hydrogen applications .

Beyond these two examples, most SMR projects remain under construction or in various stages of licensing and financing. China’s ACP100, also known as Linglong One, is under construction and expected to become the first commercial land-based light-water SMR. Argentina’s CAREM project has faced delays, while leading projects in North America and Europe continue to navigate regulatory approvals, financing requirements and supply-chain development . This limited deployment experience underscores the central challenge facing SMRs: while the technology is technically credible, its commercial viability remains largely unproven .

India’s Strategic Preparation

For India, the SMR story is one of strategic preparation rather than deployment. The country does not yet have an operational SMR project, but recent policy initiatives, including the Nuclear Energy Mission announced in the Union Budget 2025, indicate growing interest in the technology as part of India’s long-term energy transition . The mission includes an outlay of ₹20,000 crore for research and development of SMRs and aims to operationalise indigenously developed SMRs by 2033 .

India is currently developing three indigenous SMR designs :

Bharat Small Modular Reactor (BSMR-200): A 200 MWe reactor for repurposing of retiring thermal power plants and captive power plants for energy-intensive industries such as aluminium, steel, and cement. The lead unit is proposed at the Tarapur Atomic Power Station site in Maharashtra.
Small Modular Reactor (SMR-55): A 55 MWe reactor for providing energy for remote as well as off-grid locations with the objective of decarbonising the energy sector. The lead unit is also proposed at Tarapur.
High Temperature Gas Cooled Reactor (HTGCR): A reactor of up to 5 MWth capacity for hydrogen generation to decarbonise the transport sector and process industries. This reactor is proposed to be constructed at BARC Vizag, Andhra Pradesh.

India’s position is strengthened by its extensive nuclear ecosystem. Institutions such as NPCIL, BARC and AERB provide capabilities across reactor design, fuel-cycle management, regulation and operations. This institutional depth gives India advantages that many aspiring SMR countries do not possess . Rising electricity demand, increasing renewable generation, future coal retirements and growing land and transmission constraints all point towards the need for reliable low-carbon capacity. SMRs could potentially serve industrial clusters, support coal-site repowering and provide firm power in regions where grid flexibility becomes increasingly valuable .

India’s private sector is also better prepared for SMR deployment than is often recognised. Over the past two decades, Indian companies have developed significant capabilities in heavy engineering, precision manufacturing, modular fabrication, construction, instrumentation and large-scale power project execution. Several domestic firms already participate in nuclear supply chains through the manufacture of forgings, pressure vessels, turbines, electrical equipment and specialised industrial components. As SMRs move towards commercial deployment, these capabilities can support reactor manufacturing, balance-of-plant systems, modular assembly and civil works under a government-led framework .

The Challenges: Economic, Regulatory, and Operational

The most significant risk is economic. Although SMRs are smaller than conventional reactors, they remain capital-intensive projects. First-of-a-kind deployments have frequently experienced cost overruns and schedule delays, eroding the anticipated advantages of modular construction . The cancellation of NuScale’s flagship project in the United States after costs ballooned from $5.3 billion to $9.3 billion serves as a cautionary tale . Until multiple units are manufactured and deployed at scale, it remains uncertain whether the promised cost reductions can be achieved.

The fundamental problem is economies of scale. Smaller reactors mean higher costs per unit of output, and only massive replication could reverse that trend. No country is on track to build the hundreds of identical units required to make SMRs cost-competitive . As a 2026 study published in Progress in Nuclear Energy concluded, SMRs have “significantly more challenges than large reactors” . The study found that both overnight capital and O&M costs for SMRs are likely to surpass those of standard large Light Water Reactors (LWRs), due to diseconomies of scale .

Regulatory uncertainty presents another major obstacle. Nuclear licensing is inherently rigorous and often time-consuming. Because regulatory frameworks differ across countries, reactor vendors frequently face repeated design reviews and approval processes, increasing costs and delaying deployment . For many developers, obtaining regulatory certainty remains as important as overcoming technical challenges.

Fuel supply is another area of concern. Several advanced SMR designs depend on specialised fuels such as High-Assay Low-Enriched Uranium (HALEU), for which global production capacity remains limited. Supply chains for nuclear-grade components and specialised manufacturing are also still developing, creating potential bottlenecks for future expansion .

Operational risks should not be overlooked. Unlike conventional nuclear plants, which benefit from decades of operating experience, many SMR technologies have little or no commercial track record. Questions remain regarding long-term reliability, maintenance costs and the ability of some designs to operate flexibly in renewable-dominated power systems .

Safety and security considerations continue to be central to the debate. While modern SMRs incorporate advanced passive safety features intended to reduce accident risks, nuclear energy remains a technology where low-probability events can have significant consequences. Cybersecurity, physical protection and nuclear safeguards become particularly important if large numbers of small reactors are eventually deployed across multiple locations .

Waste management also remains unresolved. Although some advanced designs promise improved fuel utilisation and reduced waste generation, all reactors produce radioactive waste requiring long-term management and disposal. Studies have shown that SMRs could generate two to thirty times more spent fuel per unit of energy than today’s large reactors, and some designs produce waste streams that have never been handled before .

The Way Forward for India

SMRs are unlikely to follow a fully privatised path in India. Nuclear power remains a strategic sector under government control, and the financial, liability and safety risks associated with nuclear projects make purely private ownership improbable. A more realistic model is state-led deployment supported by private participation in manufacturing, construction, supply chains and long-term industrial offtake frameworks .

The draft Atomic Energy Bill 2025 is currently in advanced stage of processing, with policy directives regarding specific aspects of the Bill being incorporated . Task forces have been constituted in the Department of Atomic Energy to look into amendments required in the Atomic Energy Act and the Civil Liability for Nuclear Damage Act (CLND Act) to address concerns raised by private suppliers . The Nuclear Power Corporation of India Limited (NPCIL) has floated a Request for Proposal (RFP) for private industries to finance and build small-sized 220 MW PHWR-based nuclear power plants as captive plants for electricity production .

The global experience to date offers a clear lesson: SMRs should be viewed neither as a silver bullet nor as an immediate solution to power shortages. Their greatest potential lies in providing firm low-carbon electricity, industrial heat and long-term system reliability in increasingly complex energy systems. Whether they become a major component of future energy transitions will depend not on the number of announced designs, but on the ability of governments and industry to demonstrate safe, affordable and repeatable deployment at commercial scale .

For India, that journey is only beginning, but the foundations—technical, institutional and industrial—are already taking shape. The ₹20,000 crore Nuclear Energy Mission, the development of indigenous SMR designs, the engagement with private industry, and the ongoing regulatory reforms all point towards a serious, long-term commitment to this technology. The question is whether India can avoid the pitfalls that have plagued SMR projects in other countries—cost overruns, regulatory delays, supply chain bottlenecks, and waste management challenges—and successfully translate its strategic preparation into commercial deployment. The answer will depend on careful planning, realistic expectations, and a willingness to learn from both successes and failures elsewhere.

Q&A

Q1: What is the current status of SMR deployment globally and in India?

A1: Globally, only two SMR projects are commercially operating for electricity generation: Russia’s floating plant (Akademik Lomonosov) and China’s HTR-PM . Over 80 SMR designs are under development across 18 countries . India does not yet have an operational SMR, but has launched a ₹20,000 crore Nuclear Energy Mission to develop and operationalise indigenously designed SMRs by 2033 . India is developing BSMR-200, SMR-55, and an HTGCR for hydrogen production .

Q2: What are the main economic challenges facing SMR deployment?

A2: The most significant economic challenge is the lack of economies of scale. Smaller reactors have higher costs per unit of output, and only mass replication could reverse this trend . First-of-a-kind deployments have experienced cost overruns—NuScale’s project costs ballooned from $5.3 billion to $9.3 billion . Studies indicate SMR electricity costs will likely exceed those from standard large Light Water Reactors .

Q3: How does India plan to involve the private sector in SMR deployment?

A3: India’s Nuclear Energy Mission includes policy directives to partner with the private sector . NPCIL has floated a Request for Proposal (RFP) for private industries to finance and build 220 MW Bharat Small Reactors as captive plants . The draft Atomic Energy Bill 2025 is being processed, and task forces are reviewing amendments to the Atomic Energy Act and CLND Act to address private sector concerns .

Q4: What are the key safety and waste management concerns with SMRs?

A4: While SMRs incorporate advanced passive safety features, nuclear energy remains a high-consequence technology . Studies show SMRs could generate two to thirty times more spent fuel per unit of energy than large reactors, with some designs producing waste streams never before handled (irradiated graphite, chemically reactive salts) . Some fuels are projected to be about 50% more radiotoxic than conventional spent fuel after 10,000 years .

Q5: Why are SMRs considered important for India’s energy transition despite the challenges?

A5: SMRs offer firm, low-carbon electricity that can complement variable renewables like solar and wind . They can repurpose retiring coal plants (using existing transmission infrastructure), provide captive power for energy-intensive industries, and offer reliable power for remote and off-grid locations . With India aiming for 100 GW nuclear capacity by 2047 and rising electricity demand, SMRs could play a strategic role in providing decentralised, scalable nuclear power solutions .