Brazil President Lula in India: A Friendly Visit for Talks on AI, Trade, and More
Brazil’s President Luiz Inácio Lula da Silva landed in New Delhi on February 18, 2026, for a five-day state visit. He said “Namaste, India!” on social media and shared a video of his warm traditional welcome. This is his sixth trip to India, invited by Prime Minister Narendra Modi. Lula will stay until February 22. The visit focuses on stronger ties between the two countries, with key events like the AI Impact Summit and meetings with top Indian leaders. Lula got a nice welcome at the airport from Minister of State for External Affairs Pabitra Margherita. He is here with about 14 ministers and many top CEOs from Brazilian companies. They will meet Indian leaders and join a Business Forum to talk business. India and Brazil already trade a lot, $15 billion in 2025. Brazil is India’s biggest trade partner in Latin America. What Will Happen During the Visit The visit has a full schedule. On February 19-20, Lula will join the 2nd AI Impact Summit. This event brings leaders together to discuss how AI can help countries grow fairly. India and Brazil both care about smartly using tech. President Droupadi Murmu will meet Lula and host a banquet for him. Vice President C.P. Radhakrishnan and External Affairs Minister S. Jaishankar will also call on him. The big meeting is on February 21. Prime Minister Modi will sit down with Lula to review all parts of their relationship. They will talk about trade, defense, energy, farming, health, and new areas like AI and space. Modi will host lunch for Lula. The leaders will also share ideas on world issues like UN changes, climate change, terrorism, and problems facing the Global South. Strong Ties Between India and Brazil India and Brazil have been close friends since 1948. They became Strategic Partners in 2006. Both are big democracies with shared values. They work together in BRICS, where India is the chair right now. Trade is growing fast. Brazil sells things like soybeans and oil to India. India sends pharma, chemicals, and auto parts to Brazil. They cooperate in defense, green energy, critical minerals for batteries, and Digital Public Infrastructure, like India’s UPI. Both push for UN reforms and fight climate change. Lula first came to India in 2004 as a Republic Day guest. He was here last for the G20 in 2023. Modi visited Brazil in July 2025, the first Indian PM’s state visit there in 57 years. They met again at the G20 in November 2025. Why This Visit Matters This trip will help both countries plan. Business leaders want more deals in trade and investment. Ministers will talk on energy, health, and tech. The CEOs’ forum shows how companies from both sides see big chances. Lula said the visit is about “strengthening ties, deepening partnerships, and discussing AI’s future.” For India, it boosts the BRICS and the Global South work. Brazil gets a stronger link to Asia’s top economy. People-to-people links are good too, yoga in Brazil, Brazilian culture in India. Both leaders want more cooperation on big world problems.
New Mayors Take Charge in Mumbai, Pune, and 27 Other Maharashtra Cities
In a big win for the ruling Bharatiya Janata Party (BJP), the party has grabbed 20 out of 28 mayoral posts in Maharashtra’s municipal corporations. This comes after elections in 29 cities, with results from 28 announced so far. The BJP also won 17 deputy mayor posts. Only Bhiwandi Nizampur waits, its mayor poll is on February 20. This sweep shows the BJP’s strong hold in urban areas after winning most seats in the January 2026 civic polls. The polls covered 29 municipal corporations (MCs), including big ones like Mumbai (BMC), Pune, Nagpur, Thane, Nashik, and Pimpri-Chinchwad. BJP-led Mahayuti alliance (BJP + Shinde Shiv Sena + Ajit NCP) took control of 25 MCs, including cash-rich BMC. BJP alone won 1,425 of 2,869 seats statewide—a clear majority in many places. How the Mayor Elections Went Mayors are picked from elected corporators. In 28 MCs, BJP got 20 mayors (71%). Others: Shiv Sena (Shinde faction) 3, Shiv Sena UBT 1, Congress 1, NCP 1, Bahujan Vikas Aghadi (BVA) 1, Samajwadi Party 1 (Malegaon). For deputy mayors: BJP 17, Shiv Sena 4, Congress 2, and 1 each for NCP, UBT, BVA, RPI(A), Yuva Swabhiman, Samajwadi Party. Key wins: Mumbai (BMC): Mayor Ritu Tawde (BJP). BJP got 89/227 seats, alliance 118 (majority 114). Ends Thackeray’s rule after 25 years. Pune: Mayor Manjusha Nagpure (BJP). BJP won 110+ seats alone—unopposed in spots. Focus on roads, water. Nagpur: Mayor Samir Rajurkar (BJP), Deputy Rajendra Janjal (Shiv Sena-Shinde). BJP took ~100/150 wards. RSS base stays solid; general quota. Thane: Mayor Nita Thakre (BJP), Deputy Vilas Shinde? (Shiv Sena-Shinde). BJP majority (70+ seats); SC reservation, but alliance win. Thakre family rivalry (BJP vs UBT). Nashik: Mayor Himagauri Adke-Aher (BJP), Deputy Manoj Chaudhary (Shiv Sena-Shinde). BJP 72/122 seats; women’s general quota. Minister Girish Mahajan backs; Kumbh prep ahead. Bhiwandi (90 seats, majority 46) has 10 mayoral candidates, 7 for deputy, tense contest ahead. Reservation Lottery Sparks Row On February 19 (or Thursday per reports), the Urban Development Department ran a lottery for mayor seats in all 29 MCs. Based on the 2011 census quotas: 1 ST, 3 SC (2 women SC), 8 OBC (4 women), 17 General (9 women).Mumbai, Navi Mumbai, Mira-Bhayandar, and Nagpur are among 15 cities getting women mayors. Shiv Sena (UBT) cried foul, calling it “rigged” to favour rulers. They said the draw helpedthe BJP-Shinde picks. BJP dismissed it as sour grapes after poll loss. Nagpur: BJP’s Samir Rajurkar as Mayor Mayor: Samir Rajurkar (BJP). Deputy Mayor: Rajendra Janjal (Shiv Sena-Shinde faction). Details: BJP swept the Nagpur Municipal Corporation (NMC) with around 100 of 150 wards. Rajurkar, a seasoned BJP leader, was elected unopposed or with alliance support. Nagpur (orange city, RSS base) remains a BJP stronghold. Reservations favored general category; the process was smooth. Thane: BJP’s Nita Thakre as Mayor Mayor: Nita Thakre (BJP). Deputy Mayor: Process ongoing or Vilas Shinde (Shiv Sena-Shinde). Details: Thane MC was reserved for the SC category, but the BJP’s majority (over 70 seats) secured it. Thakre, a BJP corporator, takes charge amid Mahayuti control. Thakre brothers’ rivalry (BJP vs UBT) played out, with the BJP winning big. Nashik: BJP’s Himagauri Adke (or Deepmala Kale?) as Frontrunner Mayor: Himagauri Adke-Aher (BJP, likely; reports mention Deepmala Kale or process). Deputy Mayor: Manoj Chaudhary (Shiv Sena-Shinde). Details: Nashik MC is reserved for the general woman category. BJP won 72 of 122 seats, a clear majority. Adke-Aher (ex-standing committee chair) leads the race, backed by Minister Girish Mahajan. Names like Deepali Kulkarni floated; final call soon. BJP eyes Kumbh Mela prep. Background: Civic Polls Shake-Up Polls held January 15, 2026 (results Jan 16), first in 9 years for BMC, delayed by court cases. Turnout 46-50%. BJP’s solo strategy in Pune paid off; Thackeray brothers allied vs BJP-Shinde but lost BMC. AIMIM grabbed 125 seats, mostly in Mumbai. Mahayuti won 25/29 MCs; BJP chief Chandrashekhar Bawankule hailed it “historic.” State Election Commission data: BJP 1,372-1,425 seats statewide; Shiv Sena 394, Congress 315, UBT 149. What It Means BJP’s urban dominance boosts CM Devendra Fadnavis ahead of state polls. Funds control (BMC’s ₹60,000 crore budget) means more development push—roads, water, waste. Opposition warns of “one-party rule.” New mayors face trash piles, flooding, and slums, but the BJP eyes quick wins. For Pune’s Manjusha Nagpure (elected unopposed?), It’s development time.
PM Narendra Modi’s Malaysia Visit: Strengthening Strategic Partnership, Economic Cooperation and Cultural Ties
Prime Minister Narendra Modi concluded a substantive and forward-looking official visit to Malaysia, reinforcing a deepening partnership between the two nations across political, economic, security and cultural spheres. The visit — the first by an Indian Prime Minister to Malaysia in several years — was marked by high-level engagements, the signing of multiple agreements and robust discussions on shared priorities in the Indo-Pacific context, trade expansion, connectivity and people-to-people linkages.The Malaysian leg of PM Modi’s trip underscored New Delhi’s commitment to cultivating regional cooperation in Southeast Asia, building on historical ties rooted in shared democratic values, cultural exchange and economic complementarities.High-Level Bilateral Talks and Strategic DialogueAt the heart of the visit were comprehensive talks between PM Narendra Modi and Malaysian Prime Minister Anwar Ibrahim. The leaders reaffirmed their commitment to elevating the bilateral relationship to a strategic partnership reflective of converging interests in peace, security and prosperity in the region.Discussions focused on a broad agenda, including deeper cooperation in defence and security, counter-terrorism efforts, cyber security collaboration, climate resilience, digital transformation and health systems strengthening. Both leaders emphasised the importance of safeguarding freedom of navigation, upholding international law and advancing regional stability in the face of evolving global challenges.PM Modi and PM Anwar also exchanged views on enhancing cooperation within multilateral frameworks, including the United Nations, ASEAN (Association of Southeast Asian Nations) and the Indian Ocean Rim Association (IORA), highlighting India and Malaysia’s shared interest in promoting a rules-based global order.A Comprehensive Package of AgreementsA key highlight of the visit was the signing of six significant bilateral agreements and memoranda of understanding (MoUs), expanding collaboration across strategic sectors:MoU on Economic Partnership – aimed at boosting bilateral trade, investment flows and cooperation in priority sectors such as technology, manufacturing and services.Agreement on Defence Cooperation – providing a framework for joint exercises, training, information sharing and capacity building in defence and security.MoU on Connectivity – facilitating improved air, sea and digital linkages to enhance mobility for business, tourism and cultural exchange.Agreement on Energy Cooperation – focusing on renewable energy collaboration, energy security and technical exchange in clean technologies.MoU on Innovation and Digital Transformation – promoting cooperation in emerging technologies, digital governance and start-up ecosystems.Cultural Exchange Protocol – designed to further deepen people-to-people connections and collaboration in arts, education, language and heritage preservation. These agreements reflect a multi-sectoral expansion of the bilateral agenda, providing a structured roadmap for cooperation in areas critical to growth, innovation and regional integration.Economic Engagement and Trade PromotionEconomic cooperation formed a central pillar of the visit. India and Malaysia committed to further strengthening trade relations, which have grown steadily over the past decade. Both sides resolved to work toward removing structural bottlenecks, diversifying trade baskets and enhancing business connectivity.PM Modi highlighted India’s interest in attracting greater Malaysian investment in sectors such as infrastructure, semiconductors, digital technologies and renewable energy. Similarly, Malaysia expressed its intent to expand investment in India’s manufacturing and services sectors.Both leaders also discussed operationalising joint initiatives to support micro, small and medium enterprises (MSMEs), harnessing complementarities between India’s growing innovation ecosystem and Malaysia’s advanced industrial base.Shared Values and Cultural LinkagesA particularly resonant aspect of the visit was the emphasis on shared cultural heritage. PM Modi and PM Anwar reflected on the longstanding historical connections between India and Malaysia, rooted in centuries of trade, migration and cultural exchange.In a visible celebration of this shared legacy, PM Modi spoke warmly about India and Malaysia’s mutual affection for Tamil culture, which has enduring influence in both societies — in language, literature, arts and performance traditions. Recognition of these cultural affinities served as a reminder that the bilateral partnership extends beyond geo-political imperatives to deep human and historical bonds.Diaspora and People-to-People BondsThe Indian diaspora in Malaysia, one of the largest overseas Indian communities, was an explicit focus of PM Modi’s engagements. The Prime Minister interacted with diaspora representatives, acknowledging their contributions to Malaysia’s economic and social fabric while affirming India’s continued commitment to their welfare and aspirations.Both sides agreed to enhance cooperation in education, skill development, cultural exchange programmes and youth engagement to encourage future generations to build meaningful cross-border linkages.Defence, Security and Regional CooperationDefence cooperation discussions highlighted shared concerns regarding emerging security challenges in the Indo-Pacific. Both India and Malaysia reaffirmed their commitment to enhancing interoperability through joint training, maritime exercises and information exchange mechanisms.In addition, the leaders discussed counter-terrorism cooperation, focusing on intelligence sharing, capacity building and collaborative frameworks to prevent radicalisation, cyber threats and transnational criminal activities.Climate Action and Sustainable DevelopmentIn line with global climate imperatives, the visit also spotlighted cooperation on climate resilience and sustainable development. India and Malaysia reiterated their commitment to implementing the Paris Agreement goals and enhancing collaboration in renewable energy, sustainable urbanisation, water management and disaster response mechanisms.Both nations agreed to share best practices in technology deployment for climate mitigation and adaptation, recognising the shared vulnerabilities of the Asian region to climate change impacts.Joint Statement and Forward AgendaIn the joint statement issued at the conclusion of the visit, India and Malaysia articulated a shared vision for a robust, equitable and forward-looking partnership. The statement highlighted mutual respect for sovereignty, adherence to international law, and cooperation in multilateral platforms.Both countries resolved to pursue deeper engagement through structured policy dialogues, frequent exchanges at ministerial and working group levels and proactive collaboration in regional and global forums.Media, Public Reception and Global AttentionPM Modi’s visit received widespread media coverage in both India and Malaysia, with detailed reporting on bilateral talks, public events and ceremonial functions. Analysts from strategic affairs institutes and media houses underscored the visit’s significance in the broader context of contemporary geopolitics, especially in the evolving Indo-Pacific order.Indian media emphasised the correlation between enhanced India-Malaysia cooperation and India’s broader Act East Policy, which seeks to deepen ties with Southeast Asian nations for mutual economic, cultural and strategic benefit.Why This Visit MattersThis official visit is significant on multiple counts:It reinforces a mature bilateral partnership rooted in mutual respect and shared interests across strategic, economic and cultural domains.The agreements inked — especially in defence, energy, connectivity
India-US Trade Deal 2026: Comprehensive Framework, Key Terms and Strategic Implications
India and the United States have announced a framework for an interim trade agreement aimed at deepening economic ties, expanding market access, and strengthening bilateral cooperation on trade and investment. The trade deal represents progress in long-running negotiations between the two largest democracies and is viewed by New Delhi and Washington as a step toward a broader Bilateral Trade Agreement (BTA). The framework was unveiled following discussions between Prime Minister Narendra Modi and U.S. President Donald J. Trump, who first launched formal talks on a comprehensive India-U.S. trade arrangement in February 2025. Interim Framework OverviewUnder the interim framework, both countries have agreed to substantial tariff reductions and preferential market access commitments, while also embedding safeguards for politically sensitive and strategic sectors in their respective economies. The agreement stops short of a full free-trade agreement but sets out structured commitments that could be built upon in future negotiations. According to the joint statement issued by India and the U.S., the interim agreement emphasises mutual and reciprocal market access, rule-based trade enhancement, and sustained cooperation in areas of economic interest. It also commits both sides to work on non-tariff barriers to facilitate smoother trade flows. Tariff Reductions and Market AccessOne of the central features of the deal is reduction of mutually imposed tariffs on a wide range of goods:The United States will reduce its **reciprocal tariffs on Indian exports to 18 per cent from previous levels that reached up to 50 per cent on certain products, significantly improving access to the U.S. market. Tariffs will also be entirely eliminated for select Indian exports, including generic pharmaceuticals, gems and diamonds, and aircraft parts. India has agreed to eliminate or reduce tariffs on all U.S. industrial goods and a broad spectrum of American food and agricultural products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits. The reciprocal tariff arrangement is expected to open up significant opportunities for Indian exporters in traditional and emerging sectors, while also making a range of American products more competitive within India’s markets.Agriculture and Sensitive Sector ProtectionsA major concern throughout negotiations has been safeguarding India’s agricultural and rural economy, which supports a vast portion of the population. Commerce and Industry Minister Piyush Goyal has repeatedly emphasised that the deal will fully protect sensitive agricultural and dairy products from tariff concessions. Products explicitly shielded include:Staple crops such as maize, wheat, rice and soyaDairy and poultry products including milk, cheese and meatOther items critical to rural livelihoods such as ethanol (fuel), tobacco and certain vegetablesThese protections are intended to prevent adverse impacts on the livelihoods of farmers, smallholder producers and rural communities, who form the backbone of India’s agricultural economy. At the same time, India has offered zero-duty access for its farm products entering the U.S. market, including items such as spices, tea, coffee, coconut and coconut oil, cashew nuts, certain fruits like mangoes, bananas and pineapples, bakery products and vegetable waxes. This is expected to enhance export earnings for agricultural producers and MSMEs. Sectoral Gains and Strategic OutcomesThe interim framework includes sectoral provisions designed to boost trade and cooperation across diverse industries:Pharmaceuticals and Medical Devices: Zero tariffs on generic drugs and improved regulatory alignment are expected to bolster India’s strong position in the U.S. pharmaceutical market. Aerospace and Defence: Eliminating tariffs on aircraft parts and securing Section 232 exemptions are expected to benefit aerospace trade and support defence and commercial aircraft manufacturing. Manufacturing and ICT Goods: Commitments to address non-tariff barriers and streamline standards are expected to facilitate trade in information and communication technology (ICT) products and select machinery. Auto Components and Heavy Industry: The agreement anticipates tariff rate quotas for auto parts and preferential access for certain manufactured goods, enhancing industrial trade cooperation. Combined, these measures aim to reduce supply chain friction, attract investment, and support India’s Make in Indiainitiative by integrating domestic production more closely with global value chains.Energy and Long-term Procurement CommitmentsAs part of the broader economic engagement, India has signalled intentions to import approximately USD 500 billion worth of goods from the United States over the next five years. These imports include energy products such as crude oil, liquefied natural gas (LNG) and liquefied petroleum gas (LPG), along with aircraft and aircraft parts, technology products, precious metals and coking coal. These procurement commitments align with India’s strategy of diversifying its energy sources and deepening strategic economic ties with the U.S. . Expected Economic ImpactCommerce Minister Goyal has described the interim framework as a “historic and equitable agreement” that could potentially open a US$ 30 trillion market for Indian exporters. This expanded access is expected to deliver significant benefits for micro, small and medium enterprises (MSMEs), artisans, agricultural producers and women- and youth-led businesses by removing tariff barriers in the U.S. market. Key economic gains envisaged include:Boost to Indian exports in textiles, leather and footwear, plastic and rubber products, organic chemicals, home decor, artisanal goods and select machinery. Increased competitiveness for Indian pharmaceutical and aerospace sectors through zero tariff access. Enhancement of India’s MSME ecosystem through sustained preferential access and reduced non-tariff barriers. Political and Analytical PerspectivesThe trade framework has drawn both support and criticism within India. Proponents highlight its potential to create jobs, expand market reach for diverse sectors and attract foreign direct investment. Several state leaders have welcomed the deal as a step forward for economic growth and industrial development. Critics — including farmer unions and opposition figures — argue that the framework lacks sufficient detail and may expose certain sectors to unfair competition, particularly if tariff reductions are asymmetric. Concerns have been raised about the long-term impact on domestic agriculture and industrial policies. Why the Deal MattersThe interim India-U.S. trade deal is significant on multiple fronts:It marks a milestone in trade relations between the world’s two largest democracies, anchoring economic cooperation alongside strategic and defense ties. It represents a shift in India’s trade policy, balancing openness with protection for sensitive sectors while pursuing broader market access. For the United States, it strengthens economic engagement with a high-growth market and supports bilateral cooperation on technology, supply chains and industrial standards. The interim framework is
Pravasi Bharatiya Divas 2026: Celebrating the Diaspora’s Enduring Bond with India
Pravasi Bharatiya Divas (PBD), observed annually on January 9, honors the pivotal contributions of the Indian diaspora to India’s progress, marking Mahatma Gandhi’s return from South Africa in 1915 after 21 years, a moment that fueled India’s independence movement. While 2026 marks a non-convention year following the 18th biennial PBD Convention in Bhubaneswar, Odisha (January 8-10, 2025), themed “Diaspora’s Contribution to a Viksit Bharat,” global events and local initiatives continue to strengthen ties with over 35 million Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) across 200+ countries.Launched in 2003 by the Government of India, PBD has evolved into a flagship platform since 2015 in its biennial convention format, promoting engagement amid India’s position as home to the world’s largest diaspora. Valued at more than 35 million strong, this community drives diplomacy, trade, technology transfer, and cultural exchange, channeling over USD 120 billion in annual remittances, making India the global top recipient.Objectives and ImpactPBD 2026 emphasizes reconnecting overseas Indians with their roots while leveraging their potential for national growth. Key goals include building trust through direct interactions with Indian leaders and policymakers, encouraging investments in startups, infrastructure, healthcare, and education, and promoting skill-sharing from global experiences. It preserves Indian culture, languages, and traditions among second- and third-generation diaspora members while recognizing achievements through the Pravasi Bharatiya Samman Awards.The impact resonates deeply: it bolsters the diaspora’s global identity, enhances economic participation, and provides grievance redressal forums. By honoring their role in nation-building, PBD motivates sustained contributions, from business ventures to cultural preservation, positioning the diaspora as a bridge for a “Viksit Bharat” (Developed India).Dubai’s Vibrant CelebrationIn the UAE, home to one of the largest Indian communities, the Indian Business and Professional Council (IBPC) Dubai, alongside the Consulate General of India, hosted a standout cultural and thought-leadership evening blending World Hindi Day and PBD observances. The event drew Pravasi Bharatiya Award recipients like IBPC Chairman Siddharth Balachandran and veteran leader Vasu Shroff, highlighting Dubai’s stature as a hub for Indian professional excellence and exchange.Balachandran underscored the UAE’s diverse Indian tapestry, advocating for appreciation of regional languages alongside Arabic to foster coexistence. IBPC Vice Chairman Sunil Sinha stressed language in heritage preservation, while Consul Sunil Kumar urged youth involvement in cultural safeguarding. Dr. Sahitya Chaturvedi, IBPC Secretary General, addressed in Sanskrit, sharing his passion for linguistic promotion. The evening featured poetry recitals, an IBPC member Kavi Sammelan, and musical tributes to Hindi poetry, capturing the diaspora’s vibrant spirit.Looking AheadAs a non-convention year, 2026 relies on embassy-led events worldwide for reflection and dialogue, with the next major gathering slated for the 19th PBD in 2027. Smaller regional interactions may emerge, though official Ministry of External Affairs details remain pending. Amid cricket’s dominance and emerging sports like cycling (e.g., Pune Grand Tour), PBD uniquely spotlights the diaspora’s quiet power in remittances, innovation, and soft diplomacy.This observance reaffirms India’s strategic embrace of its global family, turning historical homecomings into modern partnerships for progress.
Union Budget 2026–27: Government Raises Capex, Boosts Defence, Maintains Fiscal Consolidation Path
The Union Budget for 2026–27, presented by Finance Minister Nirmala Sitharaman in Parliament on Saturday, has laid out a comprehensive fiscal roadmap aimed at sustaining economic growth, strengthening infrastructure, enhancing national security and maintaining fiscal discipline amid global uncertainty. The Budget pegs the total expenditure of the Union government at ₹53.5 lakh crore for FY27, marking a sharp increase from the revised estimate of about ₹49.6 lakh crore in FY26. The increase reflects the government’s continued emphasis on public investment, defence preparedness and social sector spending. According to Budget documents, total receipts excluding borrowings are estimated at ₹36.5 lakh crore, while gross tax revenue is projected at ₹44.04 lakh crore, up from ₹42.7 lakh crore in the current financial year. Net tax receipts to the Centre are estimated at ₹28.7 lakh crore after devolution to states. To bridge the gap between receipts and expenditure, the Centre has proposed gross market borrowings of ₹17.2 lakh crore, with net market borrowings pegged at ₹11.7 lakh crore for 2026–27. Fiscal Deficit and Debt Position The government has projected the fiscal deficit at 4.3 per cent of GDP for FY27, marginally lower than the previous year, signalling a continued commitment to fiscal consolidation. The debt-to-GDP ratio is estimated at 55.6 per cent, compared with around 56.1 per cent in FY26, indicating a gradual reduction in sovereign debt levels. Finance Minister Sitharaman said the government remains focused on balancing growth imperatives with macroeconomic stability, even as it scales up spending on infrastructure and security. Capital Expenditure at Record High Capital expenditure has once again emerged as a central pillar of the Budget. The government has allocated ₹12.2 lakh crore towards capital expenditure in FY27, compared to ₹11.2 lakh crore in FY26. At 4.4 per cent of GDP, capex remains at its highest level in over a decade. The enhanced allocation will support investments in roads, railways, ports, urban infrastructure, logistics and digital connectivity, with the aim of crowding in private investment and improving long-term productivity. The Ministry of Road Transport and Highways has been allocated around ₹3.09 lakh crore, while Indian Railways has received ₹2.81 lakh crore, continuing the focus on network expansion, modernisation and safety. Defence Allocation Sees Major Jump Defence spending witnessed one of the most significant increases in the Union Budget. The total defence allocation for FY27 has been pegged at ₹7.84 lakh crore, up from ₹6.81 lakh crore in FY26. Of this, capital outlay stands at ₹2.19 lakh crore, reflecting a strong push towards military modernisation and indigenous defence manufacturing. Revenue expenditure, including pensions and operational costs, has been placed at ₹5.54 lakh crore. Within the capital budget, allocations include ₹63,733 crore for aircraft and aero engines, ₹25,023 crore for naval platforms, and enhanced funding for missiles, armoured vehicles and advanced defence technologies. Taxation: Stability and Simplification The Budget has maintained status quo on personal income tax slabs, providing stability to taxpayers. The government reiterated its commitment to simplifying tax administration and reducing litigation. The Finance Minister confirmed that the new Income Tax Act, 2025, which aims to replace the Income Tax Act of 1961, will come into effect from April 1, 2026, introducing clearer language and streamlined procedures. On the indirect tax front, customs duties were rationalised to support domestic manufacturing by reducing duties on selected capital goods and raw materials, while levies on certain imported luxury items were increased. Ministry-wise Allocations Among all ministries, the Ministry of Finance received the largest allocation at approximately ₹19.72 lakh crore, primarily towards interest payments, subsidies and transfers. The Ministry of Home Affairs has been allocated around ₹2.55 lakh crore, while the Ministry of Consumer Affairs, Food and Public Distribution received ₹2.39 lakh crore, reflecting continued support for food security and subsidies. The Ministry of Education has been allocated about ₹1.39 lakh crore, with increased funding for school education, higher education and skill development. The Ministry of Health and Family Welfare has received approximately ₹1.06 lakh crore, aimed at strengthening public healthcare infrastructure and services. Agriculture and Rural Economy Agriculture and rural development remain key focus areas. The Budget continues support for minimum support price (MSP) operations, irrigation projects and agri-infrastructure development. Allocations for rural employment schemes and farmer welfare programmes have been maintained to support rural incomes and consumption. MSMEs, Employment and Industry To support job creation and small businesses, the government expanded credit guarantee schemes for micro, small and medium enterprises (MSMEs) and announced measures to ease access to institutional finance. Skill development programmes received higher allocations to align workforce capabilities with emerging industry needs. The manufacturing and export sectors are expected to benefit from infrastructure investments, stable tax policies and continued incentives under production-linked incentive (PLI) schemes. Green Growth and Energy Transition The Budget reaffirmed India’s commitment to sustainable development, with increased allocations for renewable energy, green hydrogen, electric mobility and climate-resilient infrastructure. Incentives for electric vehicles and clean energy projects were extended to support the transition to a low-carbon economy. Market Borrowing and Revenue Outlook The government expects improved tax buoyancy, supported by steady economic growth and compliance measures. Gross tax revenue growth is projected to support higher spending without significantly widening the deficit. Bond markets are expected to closely track the government’s borrowing programme and fiscal trajectory in the coming months. Overall Assessment The Union Budget 2026–27 presents a calibrated approach focused on infrastructure-led growth, defence preparedness, fiscal prudence and inclusive development. By sustaining high public investment while gradually lowering the fiscal deficit, the government aims to support economic momentum amid global headwinds. While the immediate impact will be seen in infrastructure activity and defence manufacturing, the broader effects of the Budget are expected to unfold through higher private investment, job creation and improved economic resilience in the years ahead.
Economic Survey 2025–26: Know the key highlights of Stable Growth& Inflation
New Delhi:The Economic Survey 2025–26, tabled in Parliament on January 29 ahead of the Union Budget, presents a picture of an Indian economy that remains resilient amid global uncertainty, while urging policymakers and businesses to proceed with caution rather than pessimism. Prepared by the Department of Economic Affairs under Chief Economic Adviser (CEA) V. Anantha Nageswaran, the document sets the tone for the government’s economic thinking going into FY27. At its core, the Survey projects real GDP growth in the range of 6.8% to 7.2% for FY27, signalling steady momentum despite a challenging external environment marked by trade tensions, tariff pressures, and geopolitical risks. Growth Outlook: Steady, but Not Without Risks According to the Survey, India’s domestic economy is on a stable footing, supported by strong macro fundamentals. For FY26, growth is estimated at 7.4% as per the first advance estimates. Looking ahead, the government expects India to remain one of the fastest-growing major economies globally. The Survey notes that while domestic drivers such as consumption resilience, public investment, and improving private investment intentions continue to support growth, global conditions remain fragile. Trade conflicts, particularly tariff-related disruptions, could weigh on exports and investor sentiment intermittently. Importantly, the Survey introduces a nuanced stance: growth prospects are steady, but policymakers must maintain buffers and credibility. As the document puts it, the outlook requires “caution, but not pessimism.” Inflation: At Historic Lows, With Firming Ahead One of the most notable takeaways from the Economic Survey is the sharp moderation in inflation. Retail inflation has remained well below the Reserve Bank of India’s target of 4%, aided by food price corrections and improved supply conditions. The RBI has estimated CPI inflation at 2% for FY26, with projections of 0.6% for the December quarter and 2.9% for the March quarter. While inflation is expected to firm up gradually in FY27, it is likely to remain within the targeted range. Healthier balance sheets across households, firms, and banks, combined with controlled inflation, have helped preserve macroeconomic stability, the Survey notes. Global Context: Headwinds Persist The Survey flags a dim medium-term outlook for the global economy, citing modest growth, lingering geopolitical tensions, and risks related to global financial markets. It warns that if the much-hyped AI boom fails to deliver productivity gains, it could trigger corrections in asset markets. Despite these risks, India’s economy has demonstrated resilience. Total exports, including goods and services, reached a record $825.3 billion in FY25, even as merchandise exports faced tariff-related pressures, particularly from the United States. Investment, Reforms, and Deregulation The Economic Survey places renewed emphasis on systematic deregulation as the next phase of reforms under what it calls Ease of Doing Business 2.0. It argues that small, targeted deregulation efforts can trigger a “butterfly effect”, leading to entrepreneurship, investment, and innovation. Public capital expenditure continues to play a critical role, with Centre-led infrastructure spending acting as a key growth driver. At the same time, private investment intentions are improving, though the Survey stresses the need for regulatory certainty to translate intent into execution. Social Sectors and Emerging Themes Beyond macroeconomics, the Survey reviews progress across employment, health, education and agriculture. It reiterates the importance of skill development as services now account for over 55% of India’s Gross Value Added. The document also raises concerns over excessive social media use among younger populations, suggesting that age-based access limits may need consideration. On artificial intelligence, the Survey proposes the creation of an AI Economic Council to calibrate the pace of adoption and balance innovation with societal risks. Setting the Stage for Budget 2026 Presented just days before the Union Budget, the Economic Survey serves as a crucial backdrop for upcoming fiscal decisions. It highlights FY26 as an “unusually challenging year,” but frames FY27 as a year of adjustment, where firms and households adapt to regulatory changes and global shifts. In sum, the Economic Survey 2025–26 paints a picture of an economy that is resilient, reform-oriented and cautiously optimistic, positioning India to navigate uncertainty without losing growth momentum.
Modi Calls Nitin Nabin His ‘Boss’ as New BJP President Takes Charge
New Delhi:In a moment rich with symbolism and political messaging, Prime Minister Narendra Modi on Tuesday formally welcomed Nitin Nabin as the new national president of the Bharatiya Janata Party (BJP), declaring that in party matters, the newly appointed chief would be his “boss”. The remark, made at a felicitation event on January 20, 2026, with the BJP’s emphasis on organisational discipline and a clear separation between the party and the government.Nitin Nabin, 45, officially assumed charge in the presence of senior party leaders and Prime Minister Modi, marking the beginning of a new phase for the BJP’s organisational leadership. Addressing party workers, Modi said he had presented an account of his own work to the new president, adding with a touch of humour that he now awaited Nabin’s “guidance” and confidential report.“When it comes to party matters, honourable Nitin Nabin ji is my boss. I am a worker,” Modi said, drawing applause from the audience. The Prime Minister had made a similar statement in 2019 alongside then BJP president Amit Shah, reiterating a long-standing message within the party that the organisation functions independently of the government.Highlighting Nabin’s generational outlook, Modi pointed to the new president’s ability to bridge tradition and modernity. He remarked that while he himself grew up listening to news on the radio, Nabin represents a generation comfortable with technology and artificial intelligence, an implicit nod to the BJP’s evolving political strategies in a digital age.Nitin Nabin was officially declared the BJP national president on January 19, following the completion of an extensive internal organisational election process. According to party sources, 37 nominations were filed in his support, all of which were found valid.While the event largely focused on organisational unity, Modi also touched upon broader political issues. He reiterated the BJP’s position on national security, stating that infiltrators posed a serious threat to the country and must be identified and deported. He stressed the importance of learning from the mistakes of other political parties, a veiled reference to the Congress, and urged BJP workers to remain disciplined and connected to grassroots concerns.As Nitin Nabin steps into his new role, he faces the challenge of steering the BJP through complex electoral terrain and internal expectations. His relatively young age and organisational mandate signal a leadership style that blends experience with adaptability, qualities the party believes are essential for navigating the evolving political landscape.The transition, marked by Modi’s symbolic deference, reinforces the BJP’s core message: strong leadership thrives on organisational clarity, collective responsibility, and disciplined separation between party and power.
PM Modi Receives the UAE President at the Airport
New Delhi: United Arab Emirates President Sheikh Mohamed bin Zayed Al Nahyan concluded a high-profile official visit to India on January 19, 2026, reinforcing the growing strategic partnership between New Delhi and Abu Dhabi. In a rare and symbolic gesture, Prime Minister Narendra Modi personally received the UAE President at the airport, underscoring the importance India attaches to its relationship with the Gulf nation.This marked Sheikh Mohamed bin Zayed’s third official visit to India since assuming office as UAE President and his fifth visit to the country over the past decade. The visit highlighted the sustained political engagement between the two countries and reflected the UAE’s view of India as a key strategic partner in Asia.During the visit, the two leaders held comprehensive talks covering trade, investment, energy security, defence cooperation, technology, and regional geopolitics. Several agreements and memoranda of understanding (MoUs) were signed to further strengthen bilateral cooperation. These included frameworks to expand collaboration in renewable energy, food security, digital infrastructure, fintech, and defence manufacturing, aligning with India’s “Make in India” and self-reliance goals while offering new opportunities for UAE investors.A major focus of the discussions was economic cooperation under the Comprehensive Economic Partnership Agreement (CEPA), which has significantly boosted bilateral trade since its implementation. Both sides reviewed progress under CEPA and agreed to work toward further increasing non-oil trade, easing market access, and encouraging private-sector partnerships. The use of local currency settlement mechanisms and the bilateral investment treaty were also highlighted as key enablers of smoother financial flows and long-term investment confidence.From India’s perspective, the outcomes of the visit strengthen energy security through long-term supply arrangements and increased cooperation in clean energy and green hydrogen. The UAE’s continued interest in investing in Indian infrastructure, ports, logistics, and technology startups was seen as a strong vote of confidence in India’s growth story.For the UAE, deeper engagement with India supports its strategy of economic diversification and strengthens its footprint in one of the world’s fastest-growing major economies. Enhanced cooperation in food corridors, technology, and innovation helps Abu Dhabi secure supply chains while expanding its global economic influence.The leaders also exchanged views on regional and global issues, including developments in West Asia, maritime security, and global economic uncertainty. Both sides reaffirmed their commitment to stability, dialogue, and cooperation in an increasingly complex geopolitical environment.Beyond agreements, the visit carried strong symbolic value. Prime Minister Modi’s decision to personally welcome Sheikh Mohamed bin Zayed sent a clear message of trust, warmth, and strategic alignment. It also reflected the personal rapport between the two leaders, which has played a significant role in elevating India–UAE ties over the years.As the UAE President departed India, the visit was widely seen as a reaffirmation of a mature and forward-looking partnership, one that goes beyond transactional ties to focus on long-term strategic, economic, and people-centric cooperation.
Bhargavastra: India’s Indigenous Counter-Drone Micro-Missile Defence System
Bhargavastra is an indigenous counter-drone defence system developed in India to address the rapidly evolving threat posed by unmanned aerial vehicles (UAVs), particularly drone swarms and autonomous aerial threats. Designed and developed by Solar Defence and Aerospace Limited (SDAL) in collaboration with Economic Explosives Limited, Bhargavastra represents a significant step in India’s efforts to build cost-effective, hard-kill air defence solutions that can operate across diverse terrains and combat modern aerial threats.The system takes its name from Indian mythological tradition, where “astra” refers to a powerful celestial weapon — an apt metaphor for a defence capability aimed at neutralising airborne dangers effectively.Why Bhargavastra Was DevelopedRecent conflicts around the world, including the Russian invasion of Ukraine and clashes in the Nagorno-Karabakh region, have highlighted how drone swarms and loitering munitions can pose significant challenges to traditional air defence systems. The Indian defence establishment and private sector designers concluded that a new kind of counter-drone solution was needed — one that could detect, track and neutralise small, low-altitude aerial threats at a lower cost than conventional surface-to-air missiles. Bhargavastra was developed in response to these emerging threats and does not rely on a formal request for proposals from the armed forces, indicating proactive indigenous innovation.Key Features and CapabilitiesBhargavastra is built around a multi-layered defence architecture that combines detection, target acquisition and hard-kill interception mechanisms:Detection and Tracking: The system is equipped with advanced radar capable of detecting small unmanned aerial targets between 6 km and 10 km away. It also uses electro-optical/infrared (EO/IR) sensors and radio frequency receivers to accurately identify low radar cross-section targets and small drones. These sensors feed into a Command, Control, Communications, Computers and Intelligence (C4I) centre, which provides real-time situational awareness and coordinated engagement decisions.Hard Kill Mechanism: Bhargavastra operates primarily in a hard-kill mode, physically destroying hostile drones rather than just disrupting their electronics. It employs two layers of interception:First Layer: Uses unguided micro-rockets capable of neutralising multiple drones within a lethal radius of approximately 20 metres, with an engagement range of up to 2.5 km.Second Layer: Uses guided micro-missiles that offer high precision for targeting evasive or high-value aerial threats, improving interception accuracy and effectiveness.A single launcher can carry multiple micro-rockets and micro-missiles, enabling rapid firing in salvo mode. The system’s modular design allows up to 64 micro munitions to be launched in quick succession, providing coverage over a wide area.Soft Kill Integration: While the system’s primary focus is hard kill interception, it can also be equipped with an optional soft-kill layer that includes jamming and spoofing technologies. These can confuse or misdirect hostile drones as part of a layered defence strategy, making Bhargavastra a comprehensive counter-UAV solution.Mobility and Terrain AdaptabilityOne of Bhargavastra’s distinguishing features is its ability to be deployed on mobile platforms, such as a 7.5-ton class all-terrain vehicle. This mobility makes it suitable for rapid repositioning to support frontline units, critical infrastructure sites, border areas and high-altitude regions. The system is capable of operating effectively in diverse environments, including mountainous terrain above 5,000 metres, making it adaptable to India’s varied geographic and strategic requirements.Testing and IntegrationBhargavastra has undergone multiple rounds of successful testing. Trials conducted at the Seaward Firing Range in Gopalpur demonstrated its ability to launch rockets and intercept targets reliably, with both individual and salvo-mode firings meeting design parameters. These tests were observed by senior officers from the Indian Army Air Defence, underlining its potential military utility.The system is designed for integration with existing network-centric warfare infrastructures, allowing it to work seamlessly with broader command and control systems used by the Indian armed forces. Its modular components — radar, sensors and launch units — can be customised based on mission needs and integrated into larger air defence architectures.Operational SignificanceBhargavastra is seen as a strategic enhancement to India’s air defence capabilities, especially in an era where unmanned systems are increasingly used in reconnaissance, surveillance and offensive roles. Traditional air defence systems can be costly and less effective against low-signature drone threats; Bhargavastra’s low-cost, mobile, multi-layer approach fills a capability gap by offering focused protection against fast-evolving UAV risks.By reducing dependency on expensive surface-to-air missiles for counter-UAV roles and leveraging domestic technology, Bhargavastra also aligns with the “Make in India” initiative and supports self-reliance in defence manufacturing. Its development positions India closer to global innovators in the counter-drone domain and has potential export prospects once fully operational.What It Means for Future DefenceAs warfare evolves with the increased use of autonomous aerial systems and swarming drones, defence forces worldwide are seeking cost-effective, scalable solutions. Bhargavastra’s layered architecture — combining detection, hard-kill interception and optional soft-kill measures — reflects this shift and underscores the importance of indigenous technological solutions tailored to contemporary threats.With further integration, testing, refinement and deployment, Bhargavastra could become a core component of India’s layered air defence grid, enhancing protection for frontline troops, strategic installations and critical assets against complex drone threats.