Congress president Mallikarjun Kharge has questioned the Centre over the sharp rise in sugar prices and declining domestic stocks, raising concerns about sugar imports and the government's ethanol policy ahead of the festive season.

In a post on X on Saturday, Kharge questioned what he described as a contradiction between the government's Atmanirbhar Bharat push and the decision to allow duty-free sugar imports. He asked why sugar stocks in India, one of the world's major sugar producers and exporters, had fallen to a nine-year low and why the government had permitted the import of 10 lakh tonnes of sugar without duty.

Kharge also questioned the diversion of sugarcane towards ethanol production for petrol blending while India was importing sugar to meet domestic requirements. He raised three questions for the Centre amid the increase in sugar prices, which, according to the figures cited in the report, have risen by ₹19 per kg over three months and are around 40% higher.

Centre Rejects Ethanol Link

The Ministry of Consumer Affairs, Food and Public Distribution has rejected the claim that the increase in sugar prices was linked to the diversion of sugar towards ethanol production.

According to the ministry, the proportion of sugar diverted for ethanol production declined from around 12% in 2022-23 to about 9% in 2025-26. It also said that nearly three-fourths of India's ethanol production now comes from grains, particularly maize.

The government attributed the recent rise in sugar prices to several factors, including lower domestic production, increased demand ahead of festivals, weather-related crop damage, tight global supplies and alleged hoarding and speculative activity.

Sugar Production Estimate Cut

India's sugar production for the current season has been estimated at 306 lakh metric tonnes (LMT), significantly lower than the earlier projection of 343 LMT.

The reduction has been attributed to crop damage caused by diseases such as red rot and top borer, along with waterlogging following excessive rainfall in several sugarcane-growing regions.

Despite the downward revision, the Consumer Affairs Ministry said domestic sugar stocks would remain adequate to meet the country's requirements until the beginning of the new crushing season in October.

Global Shortage Adds Pressure

International market conditions have also contributed to the rise in sugar prices. The global sugar market is estimated to face a deficit of around 33 LMT in 2026-27, adding pressure to international prices.

International sugar prices increased from around $474 per tonne on June 30 to $552 per tonne on August 20, representing a rise of more than 16% in less than two months.

The increase in global prices comes at a time when domestic demand is expected to rise during the upcoming festive season, putting additional pressure on the Indian sugar market.

Centre Tightens Stock Limits

The government has also introduced measures aimed at preventing hoarding and speculative activity in the domestic market. A 400-tonne stock limit has been imposed on dealers until November 30.

A separate 15-day stock limit for bulk consumers will come into effect from September 1. The Centre and state governments have also formed joint teams to physically verify sugar stocks at mills.

The government says the inspections are intended to ensure accurate reporting of available stocks and prevent artificial shortages in the domestic market.

With sugar prices rising ahead of the festive season, the issue has now become a point of political confrontation, with Kharge questioning the Centre's import and ethanol policies while the government attributes the price increase primarily to lower production, weather damage, global market conditions and demand-related factors.

From a largely agrarian economy struggling with poverty, low literacy and weak infrastructure in 1947 to a nearly $4 trillion economy powered by services, technology, digital payments and a growing manufacturing base, India has undergone a dramatic economic transformation over the past 79 years.

When the country gained independence on August 15, 1947, its economy was still shaped by the impact of colonial rule. Industrial capacity was limited, electricity access was poor and foreign exchange resources were largely held in sterling balances. Today, India has become one of the world's largest economies, with a rapidly expanding digital ecosystem and significantly stronger external finances.

Economy Nears $4 Trillion

According to World Bank estimates cited in recent data, India's nominal GDP reached around $3.96 trillion in 2025, compared with $3.91 trillion in 2024. GDP per capita stood at approximately $2,702.5.

India's latest official estimates also put real GDP growth at 7.7 per cent in FY2025-26, underlining the country's relatively strong expansion despite global economic uncertainties.

Historical comparisons, however, need caution. The frequently cited figure of around Rs 2.7-2.9 lakh crore for India's economy at Independence comes from historical reconstructions and is not directly comparable with today's GDP because national accounting methods, prices and exchange rates have changed considerably.

Liberalisation Changed Course

India's economic policy in the early decades after Independence was dominated by state-led industrialisation, import substitution and extensive government controls.

The 1991 balance-of-payments crisis became a major turning point. Economic reforms reduced licensing restrictions, opened several sectors to private investment and increased India's integration with the global economy.

The decades that followed witnessed rapid expansion in information technology, telecommunications, financial services and other sectors. India's services industry gradually became one of the country's biggest engines of growth and foreign exchange earnings.

Forex Reserves Cross $700 Billion

India's external financial position has also changed substantially.

The country entered Independence with limited access to freely usable foreign currency and remained closely linked to the sterling system. That situation was starkly different from the position in August 2026, when India's foreign exchange reserves crossed $700 billion.

RBI data showed reserves at around $707 billion in the week ended August 7, 2026, providing the country with a sizeable buffer against external shocks.

The contrast is particularly significant when compared with the 1991 crisis, when India faced severe pressure on its balance of payments and was forced to seek emergency external assistance.

Trade Basket Expands

India's merchandise exports were worth only around Rs 403 crore in 1947-48. The country's export basket has since expanded far beyond agricultural commodities and traditional textiles.

Engineering products, petroleum products, pharmaceuticals, chemicals, automobiles, electronics and other manufactured goods now form an important part of India's merchandise exports, while IT and professional services have emerged as major export earners.

In July 2026, merchandise exports reportedly touched a record $44.24 billion. However, imports rose faster, taking the merchandise trade deficit to around $31.98 billion.

The figures highlight both India's growing presence in global trade and the continuing challenge of improving manufacturing competitiveness.

Literacy and Life Expectancy Rise

Economic development has been accompanied by major social changes.

India's literacy rate was only 18.33 per cent in 1951, with female literacy at 8.86 per cent. Recent estimates put literacy among people aged seven and above at around 80.9 per cent.

Life expectancy has also increased sharply. From roughly 31-32 years around Independence, it has risen to around 72 years, reflecting improvements in healthcare, vaccination, sanitation, nutrition and disease control.

Yet regional differences in education and healthcare remain significant.

Digital Revolution Reshapes Economy

Perhaps no transformation has been as rapid as India's digital expansion.

India had no internet users in 1947. By March 2026, TRAI data showed more than 1.09 billion internet subscribers, including over 1.06 billion broadband connections.

The launch of UPI in 2016 accelerated the digital payments revolution. During FY2025-26, UPI processed more than 24,000 crore transactions, worth over Rs 314 lakh crore.

Alongside Aadhaar, Jan Dhan accounts and widespread mobile connectivity, UPI has become a key component of India's digital public infrastructure.

Electricity Capacity Soars

India's power infrastructure has also expanded dramatically. Electricity-generating capacity stood at only 1,362 MWaround Independence.

By March 2025, installed generation capacity had reached nearly 557 GW. Per-capita electricity consumption has also risen sharply, reflecting the expansion of households, industries, transport and digital infrastructure.

A Larger, Younger Economy

India's population has increased from around 36 crore in 1951 to nearly 146 crore, according to recent estimates.

The size of the population provides a major economic opportunity through consumption and labour supply. But the demographic advantage will depend heavily on employment, skills, productivity, healthcare and education.

Manufacturing has therefore returned to the centre of economic policy, with initiatives such as production-linked incentives aimed at attracting investment and integrating India into global supply chains.

The Road to 2047

India's transformation since Independence is substantial, but the next phase presents a different set of challenges.

Creating enough quality jobs, improving productivity, reducing regional disparities, strengthening manufacturing, managing urbanisation and addressing climate-related risks will be crucial.

The country's ambition of becoming a developed economy by 2047 will require sustained growth as well as broader improvements in human capital and living standards.

From a constrained post-colonial economy to a globally integrated, digitally connected and increasingly diversified economic powerhouse, India's journey over 79 years has been significant.

The bigger question now is not simply how large the Indian economy can become, but whether its next phase of growth can translate into higher incomes, better jobs and more inclusive prosperity for its vast population.

The Lok Sabha has passed the Taxation and Other Laws (Amendment) Bill, 2026, paving the way for the government to introduce charges on certain digital payment modes, including the Unified Payments Interface (UPI), in the future. However, the amendment does not impose any immediate fee on UPI transactions.

The legislative change gives the Centre the authority to notify specific electronic payment systems where transaction charges may be levied at a later stage. Any decision on the nature, rate and applicability of such charges will require a separate government notification.

No Immediate Charges on UPI

The biggest takeaway for consumers is that UPI transactions remain free for now. The amendment only creates a legal framework that allows the government to introduce charges in the future if considered necessary.

Users can continue making UPI payments without paying any transaction fee, while the existing payment experience remains unchanged.

What Has Changed in the Law?

The amendment revises provisions of the Payment and Settlement Systems Act, 2007, removing the earlier legal restriction that prevented banks and payment service providers from charging a Merchant Discount Rate (MDR) on specified electronic payment modes.

Previously, Section 10A of the Act barred banks and payment operators from levying charges on electronic payment modes prescribed under Section 269SU of the Income Tax Act.

With the revised law, the government now has the flexibility to notify one or more digital payment modes where charges could be introduced in the future.

Who Could Pay the Charges?

Industry discussions have largely centred on the Merchant Discount Rate (MDR), a fee that merchants pay to banks and payment companies for processing digital transactions.

Experts believe that if charges are introduced, they are more likely to apply to merchant transactions rather than routine person-to-person UPI transfers.

However, the government has not announced any framework specifying who would bear the cost or what the charges could be.

Why Is the Change Being Considered?

UPI has become one of the world's largest real-time payment networks, handling billions of transactions every month. While the platform has significantly expanded digital payments and financial inclusion, banks and fintech companies have argued that maintaining the infrastructure involves substantial expenditure.

Payment service providers continue to invest heavily in cybersecurity, fraud prevention, technology upgrades and transaction processing systems. Industry stakeholders have repeatedly called for a sustainable revenue model to support the growing digital payments ecosystem.

Reserve Bank of India Governor Sanjay Malhotra has also recently observed that maintaining payment infrastructure requires continued investment and that a long-term funding mechanism would eventually be necessary.

Will Everyday Users Be Affected?

At present, there is no indication that ordinary UPI users making daily peer-to-peer transactions will be charged.

The government will decide in the future whether any category of digital payments should attract fees and, if so, under what conditions.

UPI's rapid success has largely been driven by its simple, free-to-use model. Analysts believe any future charging mechanism is likely to be carefully designed to avoid discouraging digital payment adoption, particularly among small merchants and individual consumers.

For now, the amendment primarily gives policymakers the flexibility to design a sustainable funding model for India's rapidly expanding digital payments infrastructure without immediately changing how consumers use UPI.

The Reserve Bank of India (RBI) is expected to keep the benchmark repo rate unchanged at 5.25% when Governor Sanjay Malhotra announces the outcome of the Monetary Policy Committee (MPC) meeting at 10:00 AM on Tuesday. Market participants and economists largely expect the central bank to maintain the status quo, citing rising inflation risks and global economic uncertainty.

The three-day MPC meeting concludes today, marking the RBI's third monetary policy review of the current financial year.

Focus on Inflation and Growth

Economists believe the RBI is unlikely to alter interest rates immediately despite concerns over slowing global growth. The central bank is expected to prioritize balancing inflation control with domestic economic expansion.

Higher crude oil prices, weather-related risks to food inflation and uncertainty surrounding global monetary policy have prompted the RBI to adopt a cautious approach, according to analysts.

June Policy Maintained Status Quo

At its previous policy meeting in June, the RBI had also left the repo rate unchanged at 5.25%. However, it revised its inflation projection for 2027 upward from 4.6% to 5.1%, indicating growing concerns over price pressures.

The current review is the third of six scheduled MPC meetings for the financial year, following the April and June policy decisions.

Experts See No Immediate Rate Change

Financial market experts expect the central bank to avoid any immediate policy shift amid elevated global uncertainty.

According to Maulik Patel, Head of Research at Equirus Securities, rising fuel prices and weather-related disruptions have increased both wholesale and retail inflationary pressures. The brokerage estimates India's Consumer Price Index (CPI) inflation to average around 4.9% during the current financial year.

Patel said the RBI is likely to remain cautious given tighter monetary conditions globally and could consider a 25 basis point rate hike during the December policy review if inflationary pressures persist.

Why Repo Rate Matters

The repo rate is the interest rate at which the RBI lends short-term funds to commercial banks and serves as the central bank's primary monetary policy tool.

When inflation rises sharply, the RBI typically increases the repo rate, making borrowing costlier for banks. Banks, in turn, raise lending rates for consumers and businesses, reducing overall demand and helping contain inflation.

Conversely, during periods of weak economic activity, the RBI lowers the repo rate to encourage borrowing, investment and consumption by making loans cheaper.

Markets Await Policy Guidance

Apart from the interest rate decision, investors will closely monitor the RBI Governor's commentary on inflation, liquidity management, economic growth and future policy direction.

Any change in the central bank's inflation outlook or policy stance could influence bond yields, equity markets, banking stocks and lending rates over the coming months.

With inflation remaining a key concern and global uncertainties continuing, markets expect the RBI to signal a measured and data-driven approach while maintaining policy flexibility.

India witnessed several major developments across the consumer goods, technology and financial sectors on Tuesday, with the Food Safety and Standards Authority of India (FSSAI) halting the sale of several Dabur products over "100% pure" claims, the Centre summoning Meta's global team over content moderation issues, and fresh proposals reviving the debate on Merchant Discount Rate (MDR) for UPI payments.

Here are the top business stories of the day.

FSSAI Stops Sale of Dabur's '100% Pure' Products

The FSSAI has directed Dabur to stop selling several products, including honey and cow ghee, that were marketed with claims of being "100% pure."

According to the food regulator, the purity claims could mislead consumers. The authority has sought a detailed compliance report from the company within 15 days while reviewing the product claims under food safety and labelling regulations.

The move comes amid increasing regulatory scrutiny over advertising claims made by food and FMCG companies.

Thousands of WhatsApp Accounts Placed Under Review

WhatsApp users in India and several other countries reported that their accounts were suddenly placed under review, temporarily restricting messaging and calling services.

Affected users received notifications stating that their accounts were "Under Review," with platform access suspended for up to 24 hours.

Meta acknowledged the issue, saying automated systems can occasionally make mistakes and that affected accounts would be restored after verification where appropriate.

Government Summons Meta's Global Team

The Central Government has summoned representatives of Meta for meetings scheduled on August 5 and 6 over concerns related to content moderation and platform governance.

Officials are expected to discuss issues including the handling of child sexual abuse material (CSAM), synthetic AI-generated content and alleged wrongful action against verified accounts of public representatives and other prominent users.

The meeting follows growing regulatory scrutiny of digital platforms operating in India.

UPI MDR Proposal Back in Discussion

The Ministry of Finance has proposed amendments to payment-related laws that could pave the way for the return of the Merchant Discount Rate (MDR) on UPI transactions.

MDR is the fee paid by merchants to banks and payment service providers for processing digital payments. The charge was removed for UPI transactions in 2020 to promote digital payments.

The proposal has reopened discussions over the long-term sustainability of India's digital payment ecosystem, although no final decision has been announced.

WhatsApp Testing Age Verification Feature

WhatsApp has begun testing an age verification feature with a limited group of users in India.

Some users have reported prompts asking them to enter their date of birth as the platform prepares for compliance with India's Digital Personal Data Protection (DPDP) Act.

The feature is currently in the testing phase and is expected to be expanded gradually if implemented.

Markets Extend Late-Session Rally

Indian equity markets witnessed a sharp rise during the final minutes of trading for the second consecutive session.

Market participants attributed the movement to changes in settlement and trading mechanisms following recent regulatory measures introduced by the Securities and Exchange Board of India (SEBI).

The unusual late-session rally has drawn attention from retail investors and analysts monitoring market behaviour.

Gold and Silver Prices Continue to Rise

Precious metals extended their gains on Tuesday.

According to the India Bullion and Jewellers Association (IBJA), silver prices climbed by ₹1,348 to around ₹2.19 lakh per kilogram, while 24-carat gold rose ₹309, taking the price of 10 grams to approximately ₹1.43 lakh.

Gold prices have increased by nearly ₹10,000 so far this year amid strong global demand and geopolitical uncertainty.

RBI Issues New FD Guidelines

The Reserve Bank of India has introduced new guidelines for Small Finance Banks (SFBs) regarding fixed deposits.

Under the revised framework, banks will be required to disclose interest rates and other key deposit terms more transparently before customers invest in fixed deposits, improving consumer awareness and protection.

Telegram Restored on Apple's App Store

Messaging platform Telegram has returned to Apple's App Store after briefly becoming unavailable to users.

The company confirmed that the service had been restored but did not specify the reason behind its temporary removal.

Government Plans LIC Stake Sale

The Centre has announced plans to sell up to 6.5% of its stake in Life Insurance Corporation of India (LIC) through an Offer for Sale (OFS).

The floor price has been fixed at ₹382 per share, while retail investors will receive a ₹15 per share discount.

The disinvestment aims to help the government meet SEBI's minimum public shareholding norms before the May 2027 deadline.

India's higher education system has expanded at an unprecedented pace over the past two decades. Universities have multiplied, private colleges have flourished, and every year millions of students graduate with degrees in engineering, management, arts, commerce and science. Yet behind this impressive growth lies an uncomfortable reality—earning a degree no longer guarantees meaningful employment.

For many young Indians, unemployment is no longer defined by the absence of education. Instead, it is increasingly becoming a crisis of educated aspirations. Across cities and towns, graduates spend months—or even years—preparing for government examinations, applying for limited vacancies, accepting jobs far below their qualifications or leaving the workforce altogether. The result is not merely economic hardship but a growing sense of frustration, uncertainty and declining confidence in the promise of higher education.

The challenge extends beyond unemployment to underemployment. Thousands of engineering graduates work in sectors unrelated to their field of study. Postgraduates often compete for clerical or entry-level positions requiring far lower qualifications. Competitive examinations for a few hundred government posts routinely attract lakhs of applicants, many holding master's degrees, professional certifications and years of preparation. Such trends reveal a widening gap between educational attainment and labour market demand.

One of the core issues is the disconnect between academic curricula and industry expectations. While institutions continue to produce graduates in large numbers, employers frequently report shortages of candidates with practical, technical and problem-solving skills. Rapid advances in artificial intelligence, automation and digital technologies are reshaping workplaces faster than many educational institutions can adapt. Consequently, graduates may leave college with theoretical knowledge but without the skills required for emerging industries.

The problem is particularly acute in rural and semi-urban India, where quality employment opportunities remain limited. Many educated young people migrate to metropolitan cities hoping for better prospects, only to encounter intense competition, rising living costs and uncertain career paths. Others return home after unsuccessful job searches, adding to the silent burden of educated unemployment that often remains invisible in official statistics.

Mental health is another dimension that deserves greater attention. Continuous examination cycles, repeated recruitment delays, cancelled tests and prolonged uncertainty have taken a psychological toll on millions of aspirants. For many families, higher education represents years of financial sacrifice. When expected employment fails to materialise, disappointment affects not only individuals but entire households.

Addressing the crisis requires more than announcing new vacancies. India needs stronger collaboration between universities, industries and policymakers to ensure that education remains relevant to changing economic realities. Curricula must evolve alongside technological advancements. Apprenticeships, internships and vocational training should become integral components of higher education rather than optional additions. Entrepreneurship must be encouraged not merely through slogans but through easier access to finance, mentorship and market linkages.

Equally important is improving the transparency and efficiency of public recruitment. Timely examinations, faster recruitment processes and stronger safeguards against paper leaks can restore confidence among job seekers. Delays and irregularities not only postpone careers but also erode trust in public institutions.

The private sector also has a significant role to play. Investment in labour-intensive manufacturing, green technologies, healthcare, logistics and digital services can create employment opportunities for graduates from diverse educational backgrounds. At the same time, continuous upskilling and lifelong learning should become a normal part of professional careers, enabling workers to adapt to rapidly changing economic conditions.

India's demographic dividend remains one of its greatest strengths. With one of the world's youngest populations, the country possesses immense human capital capable of driving innovation and economic growth. However, this advantage can quickly become a liability if education continues to produce degrees without corresponding opportunities.

A university degree should represent more than a certificate of academic completion. It should provide young people with the confidence, skills and dignity to build meaningful careers. Bridging the gap between education and employment is therefore not only an economic necessity but also a social imperative. Until that happens, the country's unemployment challenge will remain hidden behind rising graduation numbers—leaving millions of educated young Indians searching not just for jobs, but for the dignity that meaningful work provides.

Gold and silver prices registered notable gains during the past week, extending the recent upward trend in the bullion market. According to data released by the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold increased by ₹2,622 per 10 grams, while silver gained ₹7,247 per kilogram.

The rise comes amid continued fluctuations in precious metal prices driven by global economic uncertainty, investor demand, and movements in international markets.

Gold Climbs Above ₹1.44 Lakh

IBJA data shows that the price of 24-carat gold rose from ₹1,41,378 per 10 grams on July 18 to ₹1,44,000 per 10 grams this week, reflecting a gain of ₹2,622.

Gold has remained one of the preferred safe-haven assets for investors amid market volatility, contributing to its sustained demand.

Silver Crosses ₹2.23 Lakh Per Kg

Silver also posted strong gains during the week.

The price of silver increased from ₹2.15 lakh per kilogram to ₹2.23 lakh per kilogram, registering a weekly rise of ₹7,247.

Although silver has seen sharp fluctuations throughout the year, the latest rally indicates renewed buying interest in the metal.

Gold Up Nearly ₹12,000 in 2026

Gold prices have witnessed significant movement since the beginning of the year.

On December 31, 2025, the price of 10 grams of gold was slightly above ₹1.33 lakh. It has since increased by nearly ₹12,000, reaching around ₹1.44 lakh.

Earlier this year, on January 29, gold touched an all-time high of ₹1.76 lakh per 10 grams, highlighting the extreme volatility seen in the bullion market.

Silver Still Below Its Record Levels

Unlike gold, silver remains below its peak despite this week's gains.

Silver was trading at around ₹2.30 lakh per kilogram at the end of 2025 and currently stands at ₹2.23 lakh, around ₹7,000 lower than its year-end level.

The metal had surged to an all-time high of ₹3.86 lakh per kilogram on January 29, before correcting sharply in subsequent months.

Experts See Further Upside

Commodity market expert Ajay Kedia believes both gold and silver have corrected significantly from their record highs, making them attractive for long-term investors.

According to Kedia:

• Gold could rise to around ₹1.60 lakh per 10 grams by the end of 2026.
• Silver may climb to nearly ₹2.80 lakh per kilogram.

However, he advised investors to avoid investing a large amount at one time and instead adopt a phased investment strategy to manage market volatility.

Tips for Buying Gold

Experts recommend following these precautions while purchasing gold jewellery:

1. Buy BIS Hallmarked Gold

Always purchase jewellery carrying the Bureau of Indian Standards (BIS) hallmark, which certifies the purity of the gold.

The hallmark includes an alphanumeric identification code that verifies authenticity and carat value.

2. Verify Daily Prices

Before making a purchase, compare the day's gold rates through reliable sources such as the India Bullion and Jewellers Association (IBJA).

Gold prices differ depending on whether the jewellery is 24-carat, 22-carat, or 18-carat, making it important to check current market rates.

How to Identify Genuine Silver

Consumers can perform a few simple tests to verify silver's authenticity:

• Magnet Test: Pure silver is non-magnetic and will not stick to a magnet.
• Ice Test: Silver has excellent thermal conductivity, causing ice to melt faster on its surface.
• Smell Test: Genuine silver is odorless, while fake silver often has a metallic or copper-like smell.
• Cloth Test: Rubbing silver with a white cloth may leave a black mark due to natural oxidation, indicating genuine silver.

Market Outlook

With global economic uncertainty continuing to influence commodity markets, analysts expect gold and silver prices to remain volatile in the coming months.

Investors are advised to monitor international trends, currency movements, and central bank policies before making investment decisions in precious metals.

The Central government has said it is holding regular consultations with farmers, agricultural exporters, industry representatives, and state governments to assess the impact of tariffs imposed by the United States and to safeguard India's trade interests.

Responding to a question in the Rajya Sabha on Friday, Minister of State for Commerce and Industry Jitin Prasada said the government is closely monitoring recent developments while continuing negotiations with the US on a proposed Bilateral Trade Agreement (BTA).

Government Consulting Key Stakeholders

In a written reply to Parliament, Prasada stated that the Centre remains in continuous dialogue with stakeholders affected by US import tariffs.

According to the minister, consultations are being held with:

• Farmers and farmer organisations
• Agricultural exporters
• Industry associations
• Export promotion councils
• Concerned ministries and departments
• State governments

He said inputs received from these groups are being considered to ensure India's commercial and agricultural interests are protected during trade negotiations.

India-US Trade Talks Continue

The minister informed Parliament that discussions on the proposed India-US Bilateral Trade Agreement remain active.

Negotiations began after the meeting between Indian and US leaders in February 2025, when both countries announced the "Mission 500" initiative, aiming to increase bilateral trade to $500 billion by 2030.

Since then, both sides have held multiple rounds of negotiations.

Key meetings have taken place in:

• Washington, DC (April 20–22, 2026)
• New Delhi (June 1–4, 2026)
• New Delhi during the visit of the US Trade Representative (June 22–24, 2026)

Prasada said the government continues to engage with US officials to move the negotiations forward.

Interim Trade Framework Already Announced

The two countries announced a framework for an interim trade arrangement on February 2, 2026, as part of ongoing efforts to strengthen economic ties.

The minister noted that the proposed Bilateral Trade Agreement is expected to deepen cooperation across several sectors while addressing market access concerns for both countries.

US Tariff Developments

Prasada also referred to recent developments in US trade policy.

He noted that a US Supreme Court judgment dated February 20, 2026, invalidated the reciprocal tariffs that had previously been imposed, meaning those measures are no longer in effect.

However, the US administration has continued to impose tariffs under separate legal provisions.

According to the government, the United States has issued Executive Orders imposing 10% tariffs on certain imported products under Section 122 of the US Trade Act of 1974.

Separately, the Office of the US Trade Representative (USTR) announced an additional 10% tariff on certain imports from India following an investigation under Section 301 of the US Trade Act of 1974. The US administration said the action was part of a broader initiative targeting products allegedly linked to forced labour concerns.

Government Monitoring Impact

The Centre said it is carefully studying the implications of these measures on Indian exports and domestic industries.

Officials indicated that protecting farmers, exporters, and businesses remains a priority while negotiations with Washington continue.

The government reiterated that it will continue engaging with stakeholders and pursue a balanced trade agreement that safeguards India's economic interests while expanding bilateral trade with the United States.

India's aviation industry could witness a major shift as billionaire Gautam Adani-led Adani Group is reportedly evaluating plans to launch its own passenger airline. According to Reuters, citing people familiar with the matter, the conglomerate is exploring the possibility of entering the airline business while simultaneously seeking changes to government regulations that currently restrict airport operators from owning significant stakes in scheduled airlines.

No final decision has been taken, sources told Reuters, as the group continues to assess the commercial viability of the proposal. The airline business is known for high operating costs, intense competition and thin profit margins, making it one of the most challenging sectors globally.

Rule Change Under Discussion

Current aviation regulations restrict operators of Delhi and Mumbai airports from holding more than a 10% stake in a scheduled airline. According to reports, the Adani Group has approached the government seeking a relaxation of these norms, which would enable it to either launch or acquire an airline. The proposal is reportedly under consideration, though any amendment would require legal review and approval from the Union Cabinet.

Neither the Adani Group nor the Ministry of Civil Aviation has officially commented on the reports.

Adani's Growing Aviation Presence

The Adani Group has rapidly expanded its footprint in India's airport infrastructure since entering the sector in 2019 through Adani Airport Holdings Limited (AAHL), a subsidiary of Adani Enterprises.

Today, AAHL manages eight airports across the country, including Mumbai, Ahmedabad, Lucknow, Jaipur, Guwahati, Mangaluru, Thiruvananthapuram and the upcoming Navi Mumbai International Airport. The company has also announced multi-billion-dollar investments to modernise airport infrastructure and expand passenger handling capacity.

Industry experts believe owning an airline could allow the group to integrate airport operations with airline services, strengthening its presence across the aviation value chain.

Market Dominated by Two Airlines

India's domestic aviation market is currently dominated by IndiGo and Air India, which together account for nearly 90% of passenger traffic. IndiGo holds more than 65% of the domestic market, while Air India controls around one-fourth of total passenger share.

Government officials reportedly see the entry of another financially strong airline as a way to improve competition, increase passenger choices and reduce market concentration.

However, aviation experts have also highlighted potential concerns over conflict of interest if airport operators are permitted to own airlines. Rival carriers are expected to oppose any policy change, arguing that airport owners could gain an unfair advantage in slot allocation, ground handling and infrastructure access.

Industry Challenges Remain

Despite India's position as one of the world's fastest-growing aviation markets, launching a successful airline remains a difficult task. Rising fuel prices, aircraft shortages, operational expenses and intense fare competition continue to pressure airline profitability.

Sources familiar with the discussions said Adani Group is evaluating multiple options, including starting a new carrier or acquiring a stake in an existing airline. No timeline has been finalised, and the company is yet to make any official announcement regarding its future plans.

The reported move also comes at a time when the government is looking to strengthen India's aviation ecosystem, improve regional connectivity and encourage long-term investment in the sector.

The domestic bullion market witnessed a strong rebound on Tuesday, with both gold and silver prices registering significant gains. According to the India Bullion and Jewellers Association (IBJA), silver prices surged by ₹3,159 per kilogram to ₹2.22 lakh, while 24-carat gold rose by ₹1,150 to ₹1.43 lakh per 10 grams. The sharp increase reflects renewed buying interest amid global economic uncertainty and expectations of sustained demand for precious metals.

The latest rally comes after weeks of price volatility, with market experts predicting that gold could climb to ₹1.60 lakh per 10 grams by the end of 2026 if global geopolitical tensions and inflationary pressures persist.

Gold and Silver Register Strong Gains

As per IBJA data, 24-carat gold is now priced at ₹1,43,404 per 10 grams, while 22-carat gold stands at ₹1,31,358 and 18-carat gold at ₹1,07,553 per 10 grams.

Silver also recorded a substantial rise, with one kilogram now costing ₹2,22,734, reflecting a sharp one-day increase of ₹3,159.

Across major cities, gold prices remained broadly aligned. Delhi and Lucknow recorded 24-carat gold prices of ₹1,44,370 per 10 grams, while Mumbai, Kolkata and Raipur quoted prices around ₹1,44,220. Bhopal and Ahmedabad witnessed rates close to ₹1,44,270.

Bullion Prices Remain Volatile in 2026

Precious metals have experienced considerable fluctuations this year. Gold has gained nearly ₹9,000 per 10 grams compared to its level at the end of 2025, when it traded around ₹1.33 lakh.

Silver, however, has followed a different trajectory. Despite Tuesday's jump, it remains below its year-end 2025 level, having declined by nearly ₹10,000 per kilogram over the period.

The year also witnessed historic highs. Gold touched an all-time peak of around ₹1.76 lakh per 10 grams in January, while silver surged to nearly ₹3.86 lakh per kilogram, highlighting the extraordinary volatility seen in commodity markets during 2026.

Experts Recommend Systematic Investment

Commodity market expert Ajay Kedia believes the recent correction from record highs offers investors an opportunity to enter the bullion market. However, he advises against making lump-sum investments.

Instead, investors should adopt a staggered investment strategy to reduce the impact of price volatility. According to Kedia, gold could rise to around ₹1.60 lakh per 10 grams by the end of the year, while silver may advance toward ₹2.80 lakh per kilogram, provided global economic conditions continue to support safe-haven assets.

Tips for Buying Gold

Financial experts recommend purchasing only BIS hallmarked gold, as hallmark certification guarantees purity and authenticity. Buyers should also compare prevailing market rates before making a purchase, since gold prices differ depending on purity levels such as 24-carat, 22-carat and 18-carat.

Consumers are also advised to verify the weight, making charges and invoice details before finalising a purchase.

How to Check Pure Silver

Experts suggest a few simple methods to identify genuine silver:

• Real silver does not stick to a magnet.
• Ice melts faster on pure silver because of its high thermal conductivity.
• Genuine silver has no metallic or copper-like smell.
• Rubbing silver with a white cloth often leaves a black mark due to natural oxidation, indicating authenticity.

With global economic uncertainty, geopolitical developments and inflation concerns continuing to influence investor sentiment, bullion is expected to remain in focus. Market participants will closely watch international price movements and central bank policies for further direction in gold and silver prices.

India's ambition to become a global artificial intelligence (AI) powerhouse is facing a significant challenge as an increasing number of its top AI professionals are choosing to build their careers in the United States. Higher salaries, access to advanced AI research and a mature startup ecosystem are emerging as the primary factors driving this migration.

According to a Forbes India report, many Indian AI researchers working in Silicon Valley say they have little incentive to return home. The trend has also encouraged several Indian entrepreneurs to establish AI startups in the US instead of India, raising concerns over the country's long-term competitiveness in the global AI race.

Despite being regarded as one of the world's largest hubs for enterprise AI talent, India continues to lose highly skilled professionals to overseas markets. Experts believe that while the country produces a large number of engineering graduates, retaining advanced AI talent remains a growing challenge.

The demand for AI specialists is also reshaping India's technology hiring landscape. According to the JobSpeak June 2026 report, AI-related job opportunities have increased by 16%, even as overall hiring in the IT sector declined by 3%. Companies are prioritising recruitment of AI experts while investing in reskilling existing employees to meet changing industry demands.

The talent gap is expected to widen further in the coming years. NASSCOM estimates that India could face a shortage of more than 6 lakh AI professionals by 2027. Although over 90% of early-career technology professionals use AI tools, only 23% possess the technical expertise required to independently develop and deploy AI systems.

Industry leaders say the issue is not merely a shortage of graduates but a lack of industry-ready skills. According to Anand Mahurkar, CEO of Findability Sciences, many graduates are familiar with machine learning concepts and Python programming but lack hands-on experience with real-world AI applications, creating a significant gap between academic learning and industry expectations.

As global competition for AI talent intensifies, experts believe India will need stronger research infrastructure, better compensation, startup incentives and industry-academia collaboration to retain its best minds and strengthen its position in the rapidly evolving AI ecosystem.

The conflict in West Asia is no longer confined to the battlefield. It is increasingly threatening some of the world's most critical maritime trade routes, raising fresh concerns for the global economy. After prolonged disruptions in the Strait of Hormuz, attention has now shifted to the Red Sea, where reports suggest Iran has asked Yemen's Houthi movement to prepare for a possible closure of the Bab el-Mandeb Strait.

If the strategic waterway is disrupted, it could significantly impact global shipping, energy supplies and international trade. For India, which relies heavily on maritime imports and exports, the consequences could be substantial.

Why the Bab el-Mandeb Strait Matters

The Bab el-Mandeb Strait connects the Red Sea with the Gulf of Aden and the Arabian Sea. It serves as a crucial gateway for ships travelling between Asia and Europe through the Suez Canal.

Every year, thousands of commercial vessels carrying crude oil, liquefied natural gas (LNG), manufactured goods and essential commodities pass through the narrow passage. Any disruption would force ships to take the much longer route around the Cape of Good Hope in South Africa, increasing both transit time and transportation costs.

Potential Impact on India

India imports nearly 85% of its crude oil requirements, with a significant share sourced from West Asian countries. While much of this energy reaches India through the Strait of Hormuz, exports to Europe and trade with Mediterranean markets largely depend on the Red Sea route.

A prolonged disruption in the Bab el-Mandeb Strait could have multiple economic consequences:

• Shipping costs may rise sharply due to longer routes and higher insurance premiums.

• Crude oil prices could increase, pushing up India's import bill.

• Exports to Europe may become costlier and slower, affecting sectors such as engineering goods, textiles, pharmaceuticals and chemicals.

• Delays in the supply of raw materials and components could disrupt manufacturing and industrial production.

Inflation Risks

Higher transportation and fuel costs are likely to translate into increased prices for goods and services. Rising crude oil prices generally lead to higher fuel costs, which eventually affect logistics, food prices and overall inflation.

Economists warn that persistent supply disruptions could put additional pressure on the Reserve Bank of India's efforts to maintain price stability.

Supply Chain Challenges

Global supply chains are still recovering from disruptions witnessed over the past few years. Any closure of the Red Sea route could create fresh bottlenecks in the movement of containers, industrial equipment and consumer goods.

Companies dependent on just-in-time deliveries may face production delays, while exporters could encounter higher freight charges and longer delivery schedules.

Government Monitoring Developments

Indian authorities are closely monitoring developments in West Asia. Shipping companies have already increased security measures, while global maritime agencies continue to issue advisories for vessels operating in the region.

Industry experts believe that if tensions escalate further and both the Strait of Hormuz and the Bab el-Mandeb Strait face prolonged disruptions, global trade could witness one of its biggest logistical challenges in recent years.

For India, maintaining energy security, controlling inflation and ensuring uninterrupted trade will remain key priorities as geopolitical tensions continue to evolve.