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India's GDP

India’s economic trajectory continues on a stable path, with fresh estimates suggesting that GDP growth in the July–September quarter (Q2 FY26) will come in at around 7%. Although this marks a moderation from the 7.8% growth recorded in the first quarter of the fiscal year, the performance still reflects resilience across major sectors despite a more tempered rise in services and agriculture.

Alongside GDP, gross value added (GVA) is also expected to ease slightly from 7.6% in Q1 to 7.1% in Q2, indicating a shift in the contributions of various segments of the economy as the quarter progressed.

Sectoral Dynamics: Industry Surges as Services and Agriculture Cool

According to the analysis, the most notable change lies in the contrasting trajectories of industry and services. The services sector—long viewed as the backbone of India’s growth—likely expanded at 7.4%, significantly below its 9.3% rise in Q1. Agriculture too softened, dipping marginally from 3.7% to 3.5%.

However, this moderation is partially offset by a strong rebound in the industrial sector. Industry is projected to post a five-quarter high of 7.8%, up sharply from the previous quarter’s 6.3%.

This momentum is attributed to a combination of early festive-season inventory stocking, higher production volumes following GST rationalisation, and front-loaded exports to the United States ahead of tariff changes. Together, these factors created a temporary but meaningful boost in manufacturing activity.

GVA-GDP Spread Expected to Narrow Again

One of the more technical but important insights from the report is the expected reversal in the GVA-GDP growth gap. After turning positive in Q1, the spread is forecast to slip back into negative territory by around 10 basis points.

A significant reason is the contraction in net indirect taxes—shifting from a robust 9.5% growth in Q1 to a decline of 5.2% in Q2. Subsidies, while still negative, also shrank at a slower pace. These tax and subsidy adjustments played a key part in GDP calculations and influenced the overall spread.

Government Spending Slows, Influencing Growth Pace

The quarter also saw a more restrained rise in government expenditure. Economists highlight that this softer fiscal impulse could weigh on GDP and GVA compared to the stronger momentum visible in the opening months of the fiscal year.

Yet, the private sector’s activity and manufacturing uplift helped prevent a deeper moderation in headline growth.

Capital Expenditure Trends Show Mixed Signals

Capital expenditure remained a central component of the growth narrative, though the numbers point to a normalization from the previous quarter’s surge.

Gross capital expenditure growth slowed to 30.7% year-on-year in Q2 FY26, easing from the exceptionally high 52% jump in Q1. However, when compared to the same period a year ago, capex remains on a significantly stronger base.

In absolute terms, average monthly capex climbed to Rs 1,019 billion in Q2—up from Rs 917 billion in Q1. Meanwhile, average monthly private capex rose to Rs 544 billion, nearly half the government’s level, and considerably higher than the Rs 378 billion average recorded in Q1.

These numbers show that although the pace of growth has settled, investment activity across the economy remains elevated.

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Delhi

Delhi has stepped into November with an unexpected chill that has taken the city by surprise. A sudden drop in temperature to 9°C has marked the coldest November night in nearly three years, signalling that winter has arrived earlier than usual in the national capital.

Why the Sudden Temperature Drop?

Meteorologists attribute this sharp dip to a familiar winter pattern: clear skies and cold north-westerly winds. The absence of cloud cover allows daytime warmth to escape quickly after sunset, while icy winds descending from the Himalayas intensify the cooling process. The combination created perfect conditions for Delhi’s early winter night.

Some local pockets, including the Ridge, hovered close to cold-wave conditions. However, the India Meteorological Department has not yet declared an official cold wave, noting that the required criteria—two stations recording significantly below-normal temperatures for two consecutive days—has not been fully met.

How Cold Is This Compared to Previous Years?

The new low stands out when compared with recent Novembers. In 2022, Delhi experienced a 7.3°C minimum, but the years that followed saw temperatures staying comfortably above 9°C. This makes this year’s sudden drop especially notable, hinting at a potentially colder winter ahead.

Air Quality Adds to the City’s Discomfort

Even as residents pull out their woollens earlier than expected, the air remains thick with pollution. The city continues to battle very poor to severe air quality levels, creating a dense layer that traps cold air and pollutants near the surface.

This stagnant mix of smoke, fog, and dust has made mornings particularly harsh, with many residents reporting burning eyes, reduced visibility, and a biting chill as they step outside.

What Lies Ahead for Delhi?

Forecasts suggest that the mercury may fall even further, possibly reaching 8°C in the coming days. Foggy mornings are expected to become a more regular feature as winter settles in.

Whether this early cold marks the beginning of a prolonged winter or a short-lived dip remains to be seen. For now, Delhi’s winter has made a clear and early statement.

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Sheikh Hasina

Bangladesh has been thrust into one of the most consequential moments in its modern political history. Former prime minister Sheikh Hasina, long seen as one of the region’s most polarizing leaders, has been sentenced to death for crimes against humanity. The verdict, delivered in her absence by Dhaka’s international crimes tribunal, stems from a deadly crackdown on student protesters that ignited a nationwide movement and eventually toppled her government.

Hasina, now in exile in India, has denounced the trial as a politically engineered spectacle. But inside Bangladesh, the ruling has landed with extraordinary force, stirring grief, fury, and a renewed debate over accountability, state violence, and justice in a country trying to rebuild after a year of sweeping unrest.

A Rare and Sweeping Conviction

The tribunal’s judgment centers on charges that Hasina directly authorized the use of lethal force—including drones, helicopters, and live ammunition—against civilian demonstrators during last year’s uprising. Prosecutors argued that she not only failed to prevent the violence but orchestrated operations that led to mass casualties.

Judges stated that her decisions and inaction contributed to atrocities that left as many as 1,400 people dead across weeks of unrest, making it one of Bangladesh’s deadliest political crises since 1971.

Hasina’s co-accused, former home minister Asaduzzaman Khan, also received a death sentence. Former police chief Chowdhury Abdullah al-Mamun, once considered one of Hasina’s most trusted enforcers, turned state witness and received leniency in exchange for testimony.

A Trial Defined by Absence, Trauma, and Tension

Hasina’s absence was the defining visual of the courtroom. Families of victims wept openly as the verdict was read, many seeing the decision as the first true acknowledgment of the suffering they endured. For them, this was not merely a legal victory but an emotional release.

Their grief, however, was set against a tense Dhaka. The days leading up to the ruling saw a surge in political violence, crude bombs detonated in various parts of the capital, and police enforcing shoot-on-sight orders for anyone attempting to incite chaos. On the morning of the verdict, an explosive hurled near the tribunal sent shockwaves of panic through the city.

The trial itself was broadcast widely—a deliberate move by the interim government to showcase transparency. Yet the tribunal has faced criticism from human rights groups who argue that despite recent reforms, it still lacks essential safeguards and retains the power to deliver capital punishment.

The July Revolution and Its Political Aftershocks

The uprising that toppled Hasina started with students resisting policies they saw as suppressive, only to evolve into a nationwide revolt that dismantled her 15-year rule.

For many, her time in power is remembered less for economic growth and more for allegations of corruption, authoritarianism, enforced disappearances, and a climate of fear. The uprising was a release of long-simmering anger, and the tribunal’s verdict is seen by supporters as a form of long-overdue justice.

Hasina insists she acted in good faith, claiming the tribunal is a political weapon designed to eliminate her legacy. Her son, Sajeeb Wazed, has vowed retaliation, calling the verdict outrageous and signaling that the Awami League will not retreat quietly—even as the party remains banned from participating in the upcoming February elections.

India’s Role and the Diplomatic Cross-Currents

Hasina’s presence in India adds a delicate international dimension. New Delhi has refused to extradite her, choosing instead to keep her under protection despite mounting pressure from Dhaka’s interim government. India now stands at a geopolitical crossroads as Bangladesh enters its most fragile transition in decades.

Hasina’s supporters argue that her exile is a necessary safeguard against political assassination. Critics say it complicates accountability and fuels diplomatic strain.

A Nation at a Crossroads

The death sentence has deeply divided the nation.
For families who lost loved ones, it is the only verdict they find acceptable.
For Hasina loyalists, it is evidence of a politically motivated purge.
For neutral observers, it is a stark moment revealing both Bangladesh’s determination to confront its past and the challenges of doing so in a polarized environment.

As the country prepares for its first post-Hasina election, uncertainty hangs heavily. Whether this verdict ushers in a new era of justice or intensifies political instability remains to be seen.

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Mexico GenZ protest

Mexico is witnessing a powerful surge of youth activism after the assassination of Uruapan mayor Carlos Manzo, a prominent figure who openly challenged organized crime. His killing became more than a tragic headline—it became a breaking point for a nation long plagued by violence, impunity, and political stagnation.

What began as a local expression of anger has rapidly transformed into “Generation Z Mexico,” a coordinated pushback led by young citizens unwilling to accept the status quo.

From Outrage to Organized Resistance

Within days, protests spread across major cities, gathering thousands who marched with urgency and purpose. Demonstrators advanced toward the National Palace, calling for stronger security policies, accountability from elected leaders, and justice for communities caught in the crossfire of criminal networks.

Tensions escalated as police erected barricades and deployed tear gas, turning some demonstrations into chaotic scenes. Yet the persistence of these young activists revealed a growing determination to confront issues that have lingered for far too long.

The Government’s Mixed Response

While federal officials have publicly encouraged peaceful expression, the government has also cast doubt on the spontaneous nature of the movement. Concerns have been raised about potential political influences accelerating its nationwide spread.

However, the voices on the streets tell a different story—one driven by frustration with violence, lack of opportunity, and an environment where justice feels distant.

A Generation With New Tools and New Expectations

Unlike movements of the past, this uprising is fueled by the digital fluency of young Mexicans. They are using social platforms to organize gatherings within hours, share eyewitness accounts, and build a unified identity through art, music, and cultural symbols.

Their messaging is clear: they want a safer Mexico, a transparent political system, and leaders who acknowledge the urgency of the situation rather than dismiss it.

Why This Moment Matters

Generation Z Mexico represents more than a fleeting protest wave. It reflects a profound generational shift—one where young people challenge deeply entrenched systems and demand real governance reforms.

Their mobilization has placed unprecedented pressure on national leadership. Whether or not the government responds with meaningful action may define Mexico’s political climate for years to come.

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Donald trump

In a notable departure from his earlier tariff-heavy trade strategy, US President Donald Trump has rolled back duties on a wide range of imported agricultural and processed-food items. The decision, effective from November 13, eliminates a 50% reciprocal tariff on hundreds of goods—many of which form part of India’s export basket.

This comes as the administration faces rising criticism over consumer prices and pressure to stabilise the domestic food market.

What Triggered the Change?

The revised exemption list—released as Annexure II—reflects what Trump called “additional information and recommendations” from trade and economic advisors. In his executive order, the president stated that certain agricultural products should no longer fall under the earlier tariff regime, marking a clear softening of a policy that once defined his trade stance.

The update covers 254 new items, including 229 agricultural products, representing over $1 billion of India’s exports to the US.

A Boost for India’s Agri Exporters

India’s agricultural shipments to the US are valued at roughly $5.7 billion annually. Although the newly exempted products form a smaller chunk of that total, the strategic importance is far greater than the numbers suggest.

Key Products Now at Zero Duty

  • Fruits and nuts: mangoes, guavas, coconuts, cashews, bananas, pineapples, areca nuts
  • Tea and coffee: all 12 categories exported by India
  • Spices: nearly all varieties except thyme, totaling $358.66 million in export value
  • Processed foods: juices, cocoa preparations, fruit pulps, coffee extracts, vegetable waxes
  • Essential oils: now newly classified and allowed with zero-duty access

These categories align with India’s strong global export performance, particularly in high-value, labour-intensive agricultural segments.

Why This Matters for India’s Farmers

Trade experts note that while the dollar figures may not appear headline-grabbing, the real impact lies in the agricultural value chain, where millions of workers depend on steady demand.

Removing duties:

  • Makes Indian products more competitive
  • Levels the playing field with other suppliers
  • Encourages value-added production rather than raw commodity exports
  • Supports small growers, farmer cooperatives, and processing units

With established supply networks and deep diaspora-linked demand, India is positioned to scale quickly.

Domestic Politics Behind the Tariff Retreat

The move is also tied to America’s domestic economic mood. Voters in several states expressed frustration over rising prices during recent off-year elections, leading to significant Democratic victories. Trump acknowledged that tariffs “may, in some cases” push consumer prices up—an unusual admission from a leader who has long defended them as cost-free.

Record-high beef prices, influenced partly by tariffs on Brazil, created additional political pressure.

Speaking aboard Air Force One, Trump described the rollback as “a little bit of a rollback on some foods like coffee,” but the implications are far larger.

What Happens Next?

The tariff reversal could reset trade dynamics between India and the United States, opening opportunities for long-term collaboration in food supply chains, specialty foods, and processed agricultural goods. For US consumers, the change may ease inflationary pressures on premium food categories.

For India, it represents both economic potential and validation of its reputation as a reliable agricultural supplier.

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Russia assaults Ukraine

A Night Kyiv Won’t Soon Forget

Kyiv woke up to smoke, shattered windows, and emergency sirens after one of the largest coordinated attacks in months. In the early hours of Friday, Russia launched a sweeping assault across Ukraine, directing the bulk of its firepower at the capital. Ukrainian President Volodymyr Zelenskyy reported that over 430 drones paired with 18 missile strikes formed the backbone of the offensive—an operation he described as “deliberately engineered to inflict maximum harm on civilians.”

Four people lost their lives. At least 27 were injured. Many escaped collapsed ceilings, burning cars, or falling debris that rained down across multiple districts.

“A Calculated Strike Against Civilians”: Zelenskyy Responds

In a public statement, Zelenskyy condemned the attack as an attempt to break the will of the population. He confirmed that the Azerbaijan Embassy in Kyiv suffered damage from missile fragments—an incident likely to trigger diplomatic repercussions.

Emergency workers rushed between neighbourhoods through the night, often battling fires while air-defence systems were still active overhead.

District-By-District Impact: A City Under Fire

Darnytskyi District

Debris from intercepted missiles hit the yard of a residential building and an educational institution. A car caught fire after being struck by falling fragments.

Dniprovskyi District

Three apartment blocks and a private household sustained heavy damage. Fires spread across open areas, forcing responders to cordon off the zone.

Podilskyi District

Five residential structures and one nonresidential building were battered by falling missile remnants.

Shevchenkivskyi District

Debris sparked fires near a medical facility and inside a commercial building. Smoke blanketed parts of the district before dawn.

Holosiivskyi District

A medical facility caught fire after being hit, and a nearby building suffered structural damage.

Desnianskyi District

Two residential buildings recorded fires after debris tore through roofs and upper floors.

Solomianskyi District

A residential building’s roof was engulfed in flames, requiring hours of containment efforts.

Sviatoshynskyi District

A private home burned after being struck by falling fragments—one of many fires stretching emergency resources thin.

Kyiv Region: Infrastructure Targeted Again

Outside the city limits, Russian strikes hit critical infrastructure and private homes, injuring at least one civilian. A 55-year-old man in Bila Tserkva suffered severe burns and remains hospitalised.

Fires also erupted in several suburban neighbourhoods. Local authorities warned of potential power and water outages, signalling possible longer-term disruptions.

A Pattern of Escalation – And a Warning of What’s Next

This attack highlights a worrying trend: increasingly complex, multi-layered barrages intended to overwhelm Ukraine’s defences. Analysts note that the combination of mass drone swarms with ballistic and cruise missiles is becoming more frequent—and more destructive.

Emergency teams and residents alike are bracing for the possibility that this assault will not be the last.

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United Nations Conference

Mutirão at COP30: The Power of Many Moving as One

COP30 in Belém has delivered many announcements, but few captured the heart of the summit quite like the reflections shared by UN Climate Change Executive Secretary Simon Stiell and Youth Climate Champion Marcele Oliveira.
They invoked mutirão, a deeply rooted Brazilian idea that communities accomplish their biggest challenges when they work together — shoulder to shoulder, each person contributing what they can.

Stiell and Oliveira emphasized that global climate negotiations are no different. The COP process is not powered by speeches alone; it thrives when countries, citizens, youth, scientists, Indigenous peoples, and governments all act in unison.
Their message was unmistakable: climate progress is a collective project, not a solo performance.

Why Mutirão Matters for the Climate Movement

Mutirão is more than cooperation — it represents shared responsibility, the belief that every person has a role and that collective effort achieves the impossible.

Stiell explained that climate action stalls when nations retreat into narrow interests but accelerates when everyone pulls together. Oliveira, speaking from the youth perspective, reinforced that the next generation depends on decisions made today — and young people are ready to be part of the work, not just observers.

In Belém, this spirit set the tone: collaboration isn’t symbolic, it’s strategic.
It is what will determine whether the world meets its adaptation and mitigation goals.

The Belém Health Action Plan: A Breakthrough for Climate and Public Health

Alongside this call for unity, ministers and global health leaders unveiled one of COP30’s most significant outcomes: the Belém Health Action Plan, the first-ever international climate adaptation framework designed specifically for the health sector.

The plan marks a major shift in international climate policy by recognizing something long overdue:
climate change is a health crisis.
Heatwaves, disease outbreaks, food instability, vector expansion, extreme weather, and air pollution are placing unprecedented pressure on health systems — and the most vulnerable communities pay the highest price.

What the Belém Health Action Plan Brings to the Table

1. A Global Adaptation Roadmap for Health Systems

Governments receive a structured guide on how to build climate-resilient healthcare infrastructure, supply chains, and emergency response systems.

2. Early Warning and Preparedness Mechanisms

The plan emphasizes forecasting and rapid response — giving countries tools to anticipate climate-linked health threats rather than react to them.

3. Protection for Vulnerable Communities

Priority is given to low-income regions, Indigenous peoples, rural populations, and those already facing chronic health inequities.

4. Capacity Building for Frontline Institutions

Training, technical support, and international partnerships aim to strengthen local hospitals, clinics, and health agencies.

5. Integration of Climate Data into Public Health Policy

The plan encourages countries to embed climate risk assessments directly into national health strategies.

This isn’t a general pledge — it’s a concrete framework built for implementation.

Mutirão + Health Adaptation: A New Direction for COP30

The two announcements — the call for mutirão and the introduction of the Belém Health Action Plan — complement each other.
The health plan provides a technical foundation; mutirão provides the social and political momentum.

Together, they send a message from Belém to the world:
Climate challenges cannot be solved in isolation. They require collective action across sectors, generations, and borders — the essence of mutirão.

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Google Photos

Google Photos has officially stepped far beyond its identity as a storage vault. With its latest update, the app becomes a thinking, responding, creating companion—capable of understanding your words, reimagining your images, and finding memories through conversation. This is not just an upgrade; it is a shift in what photo apps can be.

Natural-Language Editing: Speak Your Vision, See It Done

The cornerstone of this update is editing powered by simple natural language. Instead of wrestling with sliders or fiddling with complex menus, users can now type what they want: brighten the sky, open closed eyes, remove glare, replace sunglasses—Photos interprets the request and performs the transformation instantly.
It’s editing without barriers, designed for anyone who knows what they want even if they don’t know how to achieve it.

Nano Banana Arrives: Creativity Without Limits

Google’s playful yet powerful generative model, Nano Banana, is now directly embedded into the app.
With just a short prompt, you can restyle your images, create artistic reinterpretations, or generate entirely new visual concepts.
It’s a feature built for experimentation—professional users get creative options, while casual users unlock fun ways to remix their memories.

A Refined Editor Comes to iOS in the U.S.

iOS users receive an upgraded editor that rethinks interaction. Gesture-based controls make precision adjustments smoother, while voice-assisted editing brings hands-free creativity to the forefront. This redesign turns complex tasks into fluid motions and spoken prompts.

“Create With AI” Expands on Android

Android users in the U.S. and India gain access to a dedicated Create with AI hub.
This section features imaginative templates ready for personalisation—studio-style portraits, festive scenes, stylised cards, themed edits, and more.
The tool is designed to spark ideas, offering preset pathways for users who want something striking without starting from scratch.

Ask Photos Goes Global: Search Like You Talk

One of Google Photos’ most celebrated tools, Ask Photos, now reaches users in over 100 countries.
This conversational search lets you locate images using plain language—“pictures from last winter,” “tickets from the concert,” “me with my dog as a puppy.”
It also supports multiple languages, making the feature far more inclusive and intuitive.

The New Ask Button: A Chat Window for Your Memories

A new in-app Ask button ties the experience together. Instead of navigating tabs, filters, and menus, users can simply describe what they want.
Find photos, receive suggestions, revisit related moments, or explain the edits you’d like to see—Photos handles the rest.
It transforms the app into something closer to a personal visual assistant than a traditional photo gallery.

A Step Toward Interactive, Human-Centered Photo Management

This update signals a clear message: Google wants photo management to feel alive, personal, and limitless. By blending generative creativity, conversational search, and intuitive editing, Google Photos becomes a space where imagination can move as fast as memory.

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bihar elections

Bihar’s latest assembly election has delivered one of the clearest political signals in recent years. The National Democratic Alliance (NDA), anchored by Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP), is moving toward an overwhelming victory in a state where politics has historically swung between alliances.

With 74 million voters, two phases of polling, and a demographically young electorate, the Bihar election has been more than a regional battle—it has been a national barometer of political sentiment.

NDA’s Commanding Performance

As counting wrapped up on Friday, the NDA had already secured two seats and was leading in 204 of 243—a near-clean sweep.

A closer look inside the alliance:

  • BJP: Leading/winning in 93 seats with a 20.5% vote share.
  • JD(U): Dominant in 83 seats with 19% votes.
  • LJPRV: Ahead in 19 seats.
  • RSHTLKM: Leading in 4 seats.
  • HAMS: Ahead in 5 seats.

The numbers reflect an alliance not just holding ground but expanding its footprint across rural and urban Bihar.

Opposition Left Struggling for Space

The Mahagathabandhan (Grand Alliance) has been pushed into a tight corner:

  • RJD: Leading/winning in 26 seats with 22.8% votes.
  • Congress: Ahead in only 5 constituencies.
  • Left Parties: CPI(ML)(L) and CPI(M) leading in one seat each.

Other players on the field:

  • BSP: Leading in one seat.
  • AIMIM: Winning or leading in five constituencies.

For the opposition, the election has exposed structural weaknesses and a diminishing hold over key voter bases.

Key Contests: Raghopur and Alinagar Under the Spotlight

Two constituencies captured national attention:

Tejashwi Yadav in Raghopur

Raghopur, the stronghold of the Yadav family, saw dramatic swings early in the day. Tejashwi Yadav briefly trailed BJP’s Satish Kumar before reclaiming a lead of nearly 13,000 votes.
A defeat here would have marked a historic upheaval for a legacy seat that both his parents once held multiple times.

Maithili Thakur in Alinagar

Folk singer–turned–BJP candidate Maithili Thakur held a strong lead over RJD’s Binod Mishra by over 8,500 votes.
Her rise reflects the growing appeal of fresh faces and cultural icons in electoral politics.

What Is Driving the NDA’s Massive Lead?

1. A Focused Appeal to Women Voters

One of the biggest shifts in Bihar’s political landscape has come from female voter participation. With nearly half the electorate being women, targeted welfare schemes have delivered significant returns.

The Chief Minister’s Women Employment Scheme—a direct transfer of 10,000 rupees to 7.5 million women—has been widely credited with influencing voter sentiment.
Women’s turnout this year: 71.6%, outpacing men at 62.8%.

Women are emerging not just as beneficiaries but as decisive political actors reshaping mandates.

2. Controversy Over Voter List Revisions

The opposition raised concerns over the Special Intensive Revision (SIR) of electoral rolls requiring strict ID proofs.
Millions in Bihar’s poorest communities lack these documents.

  • 4.7 million names were removed from the rolls.
  • Seemanchal, a region with a large Muslim population, saw removal rates higher than the state average.

Opposition leaders argue this disproportionately affected traditional RJD-Congress voters.

Why These Results Matter Nationally

Bihar is not just another state election. With 130 million residents and significant parliamentary influence, its political currents often feed into national trends.

This election was perceived as a test of:

  • Narendra Modi’s post-2024 mandate
  • The BJP’s chemistry with regional allies
  • The opposition’s ability to retain strongholds

While the BJP did not achieve a solo majority in the 2024 general elections, its state-level victories since then signal a revival of momentum.
The trend now continues in Bihar with remarkable clarity.

A Defining Moment in India’s Political Landscape

The NDA’s near-sweep underscores a state moving decisively toward stability and developmental politics. With voter demographics evolving and alliances being tested, Bihar’s verdict will influence national narratives for months to come.

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Indian Trade

India is preparing a fresh wave of support for its export sector with a substantial budget commitment aimed at improving credit access and cushioning financial risks for exporters. According to a senior government source, the credit guarantee component alone will require 20 billion rupees (USD 227.5 million) in the upcoming fiscal year 2026.

This allocation is part of a broader export-linked support package cleared by the Union Cabinet on Wednesday, signalling a renewed push to strengthen India’s global trade competitiveness.

A Closer Look at the FY26 Credit Guarantee Allocation

As global trade conditions remain unpredictable, credit guarantees play a crucial role in helping exporters secure loans from banks with reduced risk. The government’s planned FY26 budget—dedicated exclusively to this guarantee mechanism—is designed to stabilise financing channels for small, medium, and large exporters alike.

The 20-billion-rupee allocation reflects an intent to make bank lending more secure, ensuring exporters can manage production demands, meet delivery timelines, and navigate global market fluctuations without being hindered by credit constraints.

Cabinet Clears Major Support Package for Exporters

The government’s export support strategy goes far beyond credit guarantees. On Wednesday, the cabinet approved a 450.6-billion-rupee spending plan dedicated to strengthening exporters’ resilience and boosting India’s trade performance.

A key feature of this package includes:

  • 200 billion rupees earmarked specifically for credit guarantees on bank loans.
  • Additional financial support and schemes designed to lower operational stress on exporters.

This multi-layered support framework aims to unlock easier access to working capital, especially for sectors often exposed to international volatility.

Why This Matters for India’s Trade Ecosystem

Exporters form a crucial pillar of India’s economic foundation. Reliable credit access not only supports producers but also bolsters employment, manufacturing output, and foreign exchange earnings.

The announcement arrives at a time when:

  • Several export-driven industries are navigating tighter global demand cycles.
  • Banks remain cautious about lending due to global uncertainties.
  • Policymakers are keen on expanding India’s footprint in competitive global markets.

By strengthening its credit guarantee architecture, India is signalling that exporters will have the institutional backing required to stay competitive and agile.

What to Expect in FY26

The FY26 allocation underscores the government’s long-term strategy to support exporters through a structured financial safety net. With both direct and indirect incentives now in place, exporters can anticipate:

  • Higher confidence from banks during loan evaluations.
  • More predictable access to working capital.
  • Lower financial risk in scaling operations.

As the global supply chain continues evolving, this initiative could play a significant role in keeping Indian exporters on firm ground.

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