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    India's GDP to grow 7.6 pc in FY26 after revamp of calculation framework
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February 27, 2026
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GDP calculation revamp raises official growth estimate and restructures sectoral measurement, affecting fiscal and policy benchmarks.
A methodological overhaul adopting a 2022-23 base year revises GDP computation by introducing double deflation for manufacturing and agriculture, replacing single deflation, and shifting household estimation to regular surveys. The new series integrates administrative sources (GST, PFMS, vehicle data) to better capture informal and fast growing sectors, producing upward revisions to headline real and nominal growth rates, altering sectoral contributions-notably manufacturing and services-and changing fiscal deficit and policy benchmarks that require recalibration of prior forecasts.
February 27, 2026
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Money laundering probe under PMLA progresses as ED seeks statements and attaches assets amid linked bank fraud allegations.
PMLA investigation alleges bank loan fraud by group companies; the ED sought to record the principal individual's statement in a Yes Bank-linked money laundering case but he did not appear and his spouse sought adjournment. The ED has previously questioned the individual, conducted extended interrogation, attached a Mumbai residence under anti-money laundering law, filed multiple money laundering cases against group entities, and formed a Special Investigation Team to probe related instances. A parallel agency registered a fresh criminal case and conducted searches concerning alleged cheating of a public sector bank.
February 27, 2026
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Base-year revision of GDP raises growth estimates and updates methodology using tax and administrative data.
The national accounts have been rebased to 2022-23 and revised by incorporating GST, PFMS and vehicular-registration data to refine GDP measurement. The methodology now uses double deflation for manufacturing and agriculture, more granular deflators elsewhere, and compiles household-sector levels from annual enterprise and labour-force surveys instead of inter-survey proxies, producing revised quarterly and annual real and nominal GDP estimates and altered growth profiles across recent periods.
February 27, 2026
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Foreign exchange reserves dip, driven by declines in currency assets, gold holdings, SDRs and IMF reserve position.
India's foreign exchange reserves fell by USD 2.119 billion for the week ended February 20, lowering total reserves to USD 723.608 billion. The decline was driven by decreases in foreign currency assets (down USD 1.039 billion to USD 572.564 billion), gold reserves (down USD 977 million to USD 127.489 billion), Special Drawing Rights (down USD 84 million to USD 18.84 billion), and the reserve position with the IMF (down USD 18 million to USD 4.716 billion).
February 27, 2026
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Fiscal receipts and expenditure review reports major tax receipts, state tax devolution and primary outlays through January.
Consolidated monthly accounts to January 2026 report Centre receipts at 79.5% of revised estimates-mainly Tax Revenue with Non Tax and Non Debt Capital Receipts-and an increased transfer to States as Devolution of Share of Taxes. Total expenditure is 74.3% of estimates, split between Revenue and Capital Expenditure, with Interest Payments and Major Subsidies forming the principal components of Revenue Expenditure.
February 27, 2026
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DTAA narrowing prompts NRIs to move from traditional offshore structures to IFSCA regulated Gift City USD fund structures.
Tightening of treaty shopping rules under foreign exchange regulation, expanded beneficial ownership disclosure and increased tax authority scrutiny have eroded the cost benefit of Singapore and Mauritius structures, prompting NRIs to consider IFSCA regulated Gift City USD denominated funds. Gift City offers open ended equity funds, Category II AIFs with multi year lock ins and Category III AIFs for active equity strategies; advisers emphasise modelling embedded gains, consulting tax advisors on DTAA applicability, and assessing currency risk, liquidity profiles and the distinction between MOIC and IRR before restructuring.
February 27, 2026
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Pre-trial detention under the PMLA risks indefinite incarceration unless predicate offences and proceeds are judicially established.
The PMLA should not be deployed to permit coercive arrest and prolonged pre-trial detention based on provisional allegations before the foundational facts of the predicate offence and the status of alleged proceeds of crime are judicially established; provisional attachment may be justified to preserve investigation, but arrest and onerous bail conditions must not operate mechanically absent a crystallised, judicially cognisable predicate offence, and statutory powers must be harmonised with constitutional safeguards protecting personal liberty.
February 27, 2026
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Tariff rebalancing: joint statement allows modification of commitments if tariff changes affect the bilateral trade pact.
The joint statement accompanying the interim bilateral trade agreement provides for tariff rebalancing, permitting either party to modify its commitments if the other changes agreed tariff measures, thereby preserving reciprocal balance. This mechanism functions as an operative safeguard to adjust negotiated tariff concessions in response to unilateral tariff actions while the parties finalise the legal text.
February 27, 2026
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Basic salary threshold changes require employers to restructure pay and update payroll systems under new laws.
New labour codes and the Income Tax Act 2025 require employers to reconfigure compensation structures so Basic Pay meets the prescribed threshold, increasing provident fund, social security, gratuity and leave liabilities; update payroll systems and TDS reporting to new rules and forms; effect prompt final wage settlement on separation via automated HRMS workflows; maintain fully digitized statutory records for real time inspections; and extend proportionate statutory benefits to fixed term employees, prompting reassessment of project and seasonal workforce liabilities.
February 26, 2026
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Free trade agreement strengthens market access and builds on earlier economic reforms enabling sustained growth potential.
Economic reforms liberalised foreign exchange, dismantled bureaucratic restrictions and opened the Indian market to foreign investors, stabilising public finances and enabling prolonged economic growth. The recently concluded free trade agreement with the European Union is presented as a further deepening of market integration that builds on those reforms and enhances bilateral market access.
February 26, 2026
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Executive tariff authority struck down; bilateral trade negotiations paused pending legal text to implement tariff reductions.
Presidential tariff authority was found invalid, prompting immediate temporary tariff adjustments and delaying bilateral trade negotiations because the interim framework reducing duties must be converted into a legally binding text before implementation. Chief negotiators' meetings were postponed pending clarity on tariff legality and future orders, and India indicated it will resume talks once tariff treatment is clarified.
February 26, 2026
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Money laundering probe prompts extended questioning and attachment of assets in alleged bank fraud matter.
Allegations of large scale bank fraud and resultant money laundering underpin the probe: extended questioning under the Prevention of Money Laundering Act concerns alleged diversion of funds through foreign subsidiaries and offshore entities tied to a group company. Investigative measures include constitution of a specialized investigation team, attachment of assets under anti money laundering provisions, searches, arrests of former executives, and parallel criminal case registrations alleging bank cheating in separate loan transactions.
February 26, 2026
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Simultaneous insolvency proceedings allowed against principal debtor and guarantor, enabling creditors to pursue parallel recovery routes.
There is no statutory bar under the Insolvency and Bankruptcy Code to initiating concurrent CIRP proceedings against a principal debtor and its corporate guarantor for the same debt; a creditor's right to realize a guarantee must not be frustrated by requiring sequential insolvency processes, the IBC does not exempt guarantors during pendency of another process, and adjudicating authorities must examine such applications independently, consistent with the principle that a surety's liability is co-extensive with the principal debtor.
February 26, 2026
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Prosecution sanction requirement in PMLA cases accelerates trial after agency files requisite approvals before the special court.
Enforcement Directorate placed competent prosecution sanction and an equivalent CrPC sanction order before the Special PMLA Court to remedy procedural defects identified by the Supreme Court and to expedite trial in two money laundering prosecutions arising from the Aircel Maxis and INX Media matters. The agency's action validates earlier ED chargesheets and aims to overcome delays caused by challenges to PMLA sanction requirements.
February 26, 2026
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Free Trade Agreement negotiations between India and Israel progress, covering goods, services, rules of origin, and digital trade.
Negotiations commenced under a signed Terms of Reference to establish a structured framework for an ambitious Free Trade Agreement between India and Israel, with the first round of talks addressing core chapters-trade in goods and services, rules of origin, sanitary and phytosanitary measures, technical barriers, customs procedures, intellectual property rights and digital trade-and agreeing continued virtual engagements and a further in person round in Israel.
February 26, 2026
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Recovery of real estate regulatory dues intensified, with stricter property-tracing and revenue recovery measures to enforce orders.
The government will intensify recovery of unpaid dues under the Real Estate Regulatory framework by directing district collectors to expedite recoveries, identify and attach defaulting developers' properties across districts, and trace assets using land records, stamp and registration data, property tax rolls, company registrations, vehicle registration records and, where necessary, tax authority assistance; recovery will be pursued through statutory revenue-recovery mechanisms and overseen via periodic reviews by senior administrators.
February 26, 2026
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Tribunal accountability undermined as technical members outsource judgments, prompting urgent tenure and vacancy reforms and oversight action.
Tribunal functioning and accountability are the central concerns: tribunals have become a "no-man's land" lacking accountability and producing questionable orders. Structural defects in the appointment and tenure regime allow technical members to assume chairpersonship and, in some instances, outsource drafting of judgments. The court directed the executive to expedite vacancy-filling mechanisms and granted interim tenure extensions for chairpersons while urging reforms to appointment, training, and accountability processes.
February 26, 2026
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Consumer financing enables AC purchases on Easy EMI, improving affordability but requires checking eligibility and costs.
Guidance advises matching AC capacity and inverter technology to room conditions to avoid high bills and uneven cooling, factoring installation and maintenance costs into total ownership, and prioritising warranty, spare parts, and after sales support. Easy EMI financing options with online eligibility checks, Insta EMI card facilitation, zero down payment offers, and variable promotional terms are available, but buyers must verify precise loan limits, service availability, and partner store conditions before purchase.
February 26, 2026
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Bank fraud allegations prompt fresh probe into diversion of loan funds and related money laundering inquiries.
A central investigative agency registered a fresh criminal case alleging that the promoter and his telecom group diverted and misutilised sanctioned loan funds, created fictitious related party transactions, manipulated accounts, and layered funds to conceal true flows, leading to the account's NPA classification; the bank's complaint and forensic findings allege systematic diversion through group entities and liquidation of investments to effect payments inconsistent with sanction terms.
February 26, 2026
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Unsecured personal loans: flexible repayment and competitive rates available, subject to credit score, income, and eligibility.
Bajaj Finance markets unsecured personal loans with competitive, credit based interest pricing, flexible repayment tenures chosen to manage EMI burden, minimal documentation, online application and expedited disbursal. Loan amounts cover a range of consumer needs and eligibility is determined by nationality, age limits, employment status and a minimum credit score, with rates and approval conditioned on income, employment type, credit profile and repayment capacity. The lender is a deposit taking institution registered with the Reserve Bank and classified as an NBFC D and NBFC ICC.

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Japan's leader heads to Washington for visit complicated by Iran war fallout

March 18, 2026

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Tokyo, Mar 18 (AP) Japanese Prime Minister Sanae Takaichi is travelling Wednesday to the United States for what she expects to be a “very difficult” meeting with US President Donald Trump after he called on Japan and other allies to send warships to secure the Strait of Hormuz.

The three-day visit to Washington was originally expected to focus on trade and strengthening the US-Japanese alliance as China's influence grows in Asia. It is now expected to be overshadowed by the war the United States and Israel launched against Iran on February 28.

”I think the US visit will be a very difficult one, but I will do everything to maximise our national interest and to protect the daily lives of the people when the situation changes daily," Takaichi told parliament on Wednesday, hours before her departure.

Takaichi held her first meeting with Trump in October in Tokyo, days after becoming Japan's first female prime minister. A hard-line conservative, Takaichi is a protege of former leader Shinzo Abe, who developed a close friendship with Trump.

Her initial plan was to focus largely on China and strengthen the Japan-US alliance ahead of Trump 's highly anticipated diplomatic trip to China that had been planned for months. The White House announced Tuesday that it is being delayed due to the war in the Middle East.

Takaichi will be in the hot seat figuring out what best to offer to Trump. Experts say showing commitment and progress in investment deals is key to a successful summit.

Japanese officials say the two sides will work to deepen cooperation in regional security, critical minerals, energy and dealing with China.

No plan to send warship to the Strait of Hormuz A key US ally in Asia, Japan has carefully avoided clear support for the US-Israel strikes on Iran or a decision over a warship deployment. That's mainly because of Japan's constitutional constraints but also due to a legal question over the US action and strong public opinion against it.

She told parliament that Japan hopes to see a de-escalation of the war, which has disrupted deliveries of oil and gas that Japan is highly dependent on.

“Without early de-escalation of the situation, our economy will be in trouble,” she said. “Early de-escalation is important for both the US and global economy.” Japan also hopes to secure its traditional ties with Iran, where most of Japanese oil imports come from.

Takaichi and her ministers have denied that Washington officially requested Japanese warships sent to the Strait of Hormuz. Trump on X asked a number of countries, including Japan, to volunteer. He then said he no longer needs them, complaining about a lack of enthusiasm.

That takes some pressure off Takaichi.

“We have no plans to send warships right now," Takaichi told the parliamentary session Wednesday. A dispatch for survey and intelligence missions are possible but only after a ceasefire, she said. Some Japanese experts have commented that minesweeping would be a mission that the country could carry out when hostilities end.

“I will clearly explain what we can do and cannot do based on the Japanese law,” Takaichi said. “I'm sure (Trump) is fully aware of the Japanese law.” China and security Takaichi wants to discuss China's security and economic coercion and ensure the US commitment in the Indo-Pacific region, especially as some US troops stationed in Japan are being shifted to the Middle East — a change seen by Japan as a potential risk for Asia as China's clout grows.

Takaichi plans to reassure Trump of Japan's military buildup, emphasising the acceleration of long-range missile deployment to enhance offensive capabilities. This breaks from Japan's postwar self-defense-only principle and reflects closer alignment with the US.

At the summit, Takaichi is expected to convey Japan's interest in joining America's "Golden Dome" multi-billion dollar, multi-layered missile defence system.

Japan considers China a growing security threat and has pushed a military buildup on southwestern islands near the East China Sea.

Takaichi has pledged to revise Japan's security and defense policy by December and seeks to further bolster Japan's military with unmanned combative weapons and long-range missiles.

Her government is to scrap a lethal arms exports ban in the coming weeks to promote Japan's defence industry and cooperation with the United States and other friendly nations.

Oil in Alaska, rare earths in Japan A resource-poor nation, Japan is seeking to diversify oil suppliers and is finalising a Japanese investment for increased oil production in Alaska and stockpiles in Japan, according to media reports.

A Japanese investment in small modular reactors and natural gas in the US is also a possibility.

If agreed, the projects would be part of a USD 550 billion investment package that Japan pledged in October. In February, the two sides announced Japan's commitment to the USD 36 billion first batch of projects — a natural gas plant in Ohio, a US Gulf Coast crude oil export facility and a synthetic diamond manufacturing site — whose progress is also to be discussed with Trump.

Japan reportedly plans to propose a joint development of rare earths discovered in undersea soil around the remote Japanese island of Minamitorishima as part of the investment package.

Diplomatic and trade disputes have escalated further since Takaichi's comment that any Chinese military action against Taiwan could be grounds for a Japanese military response. (AP) PY PY

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