The Economic Times

Iran's leader Ayatollah Ali Khamenei has died. His passing may not significantly alter the country's political landscape. The United States and Israel have launched attacks on Iran, citing nuclear concerns. This action follows a period of diplomatic efforts that appeared close to a peace deal. The conflict has already escalated, impacting global energy supplies and regional stability.

India's economy is showing strong growth, exceeding expectations. New GDP figures reveal a shift towards employment-rich sectors like manufacturing. This revised data offers a clearer picture of economic health. While agriculture faces challenges, the overall trend is positive. Policymakers now have better information for future decisions.

American sports present a confusing spectacle. The Super Bowl, touted as a global event, features prolonged breaks for commercials and entertainment. This contrasts with sports like cricket, which, despite its length, maintains continuous play. Baseball and basketball also present their own complexities.

Tajikistan, once part of the Soviet Union, faces challenges from borders drawn by Moscow. The nation is now focused on building a modern future. President Emomali Rahmon's rule is visible everywhere. The capital, Dushanbe, is undergoing a construction boom. New monuments aim to erase Soviet influence. The country seeks to define its national identity after historical divisions.

Sam Altman's gyan to not conflate age with wisdom goes beyond career advice. Altman's right on a bigger scale. Especially here in India, we put too much premium on 'wisdom of elders'. And it can be crippling.

The heart symbol has traipsed from ancient coins and medieval art to jewels and logos, evolving across space-time - without anyone able to claim credit, hand on heart, for its design

India faces a critical challenge as its burgeoning data center sector, especially AI facilities, intensifies its already dire water scarcity. With limited freshwater and high groundwater extraction, the rapid growth of these centers threatens to deplete vital resources further. This expansion also brings toxic effluents and emissions, compounding existing groundwater contamination.

American companies and consumers can, and will, challenge tariffs in court if they are not properly authorised. Dramatic tariff announcements will now face greater legal scrutiny unless supported by Congress. Countries negotiating with the US should feel less compelled to respond with urgency or fear to such threats.

Modi's Israel outreach strengthens India's role within I2U2 and signals potential new alliances, ushering in a clear shift in regional posture. Amid a fragile regional climate, New Delhi seeks lasting benefits while balancing competing relationships on the global stage.

India's Budget 2026 aims for growth by boosting public investment and controlling the deficit. The focus now shifts to how this investment will create jobs and boost household incomes. The neo-middle class, a key consumer group, faces income volatility. Future success depends on ensuring stable employment and social infrastructure, not just building assets.

India is strengthening ties with Israel and the UAE, forming new alliances. This strategic shift aims to counter regional instability and Chinese influence. New Delhi is investing in defence, technology and resilient supply chains. The move signifies India's active participation in global geopolitics, securing its interests in a dynamic West Asia and beyond.

Canadian official Mark Carney visits India to strengthen strategic ties. This visit follows a diplomatic thaw and aims to finalize the Comprehensive Economic Partnership Agreement. The agreement, under negotiation since 2010, is crucial for boosting bilateral trade. Both nations seek to diversify economic partnerships and build resilience.

Artificial intelligence is transforming the IT sector. Experts predict AI will automate many coding tasks, changing the role of software engineers. This shift impacts IT services companies, especially in India. Business models are moving from paying for people to paying for results. New AI-powered companies will emerge, focusing on delivering specific outcomes.

Airport slots are crucial for airlines. India's current system favours established carriers, hindering new entrants and regional flights. This limits competition and passenger choice. New airports offer a chance to reform slot allocation. Prioritising new airlines and regional carriers at these hubs can ease congestion and boost connectivity. A policy shift is needed.

The 16th Finance Commission has ended revenue deficit grants for states. This move aims to fix fiscal problems and encourage states to manage their finances better. Previously, states relied on central support, weakening their incentive for reforms. This change signals a move towards greater fiscal responsibility. The commission's decision aligns with global practices to manage government debt effectively.

India's economic growth is attracting global attention. While net FDI has turned negative, this is a positive sign. It indicates foreign investors are profiting from India's high market valuations and repatriating funds. This trend, alongside robust domestic investment, highlights a dynamic and democratized capitalist landscape. The IPO market continues to thrive, showcasing India's economic strength.

The 16th Finance Commission prioritizes efficiency over equity, shifting incentives towards economic effort by weighting GSDP share in horizontal distribution. It also discontinues revenue-deficit grants, restoring a hard budget constraint and reducing moral hazard. This aims to incentivize states to expand their economic base and improve fiscal capacity.

The EU-India FTA promises cheaper drugs and medical devices, but India's regulatory framework may hinder patient benefits. Current pricing mechanisms, including market-based ceiling prices and loopholes for fixed-dose combinations, prevent cost reductions from reflecting in retail prices. An urgent overhaul of drug pricing and an independent regulator for procedures are needed to ensure affordability and realize the FTA's full potential.