daily news capsule
1. 2030 Commonwealth Games scheduled for Ahmedabad
Ahmedabad will probably host the Commonwealth Games (CWG) in 2030, as the competition’s executive board on Wednesday recommended the Gujarat city for the centenary edition of the event. Now, only the final go-ahead is left to be given during the organisation’s general assembly next month, with the process expected to be a formality, before the return of the Commonwealth Games to India is confirmed. Nigeria’s capital Abuja was the only other contender in the field. The proposal will be put before the general meeting of Commonwealth Sport, the event’s governing body, in Glasgow on 26 November. This will not only bring the CWG back to India after two decades – New Delhi hosted the 2010 edition – but could also be a significant boost to the country’s bid to host the 2036 Olympics, for which Ahmedabad has been put through a significant sporting infrastructure transformation. With the support of the Union Cabinet, the Indian Olympic Association had earlier this year launched a bid to bring the Commonwealth Games to the country. Commonwealth Sports officials also visited Ahmedabad several times to inspect the infrastructure.
Question: India’s successful bid to host the 2030 Commonwealth Games has reignited the debate about mega sporting events. Critically evaluate the opportunities and risks for India in terms of urban transformation, soft power and financial stability with reference to past experiences such as the 2010 Delhi Commonwealth Games.
2. Attack on BRICS, dollar, says Trump
US President Donald Trump has called the BRICS grouping an “attack” on the US dollar and claimed that he had threatened countries that wanted to join the grouping with tariffs, after which “everyone freaked out”, PTI reported. BRICS includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates. Trump has frequently threatened to impose additional tariffs on the bloc for what he calls its “anti-American” policies. BRICS countries have expressed serious concern over the increase in unilateral tariff and non-tariff measures that distort trade. Speaking at a bilateral meeting with Argentine President Javier Milli on Tuesday, Trump said he was “very strong” on the dollar, adding that “anybody who wants to deal in dollars” will have an “advantage” over those who don’t. The Kremlin said on Wednesday that BRICS has never targeted third countries or their currencies. Kremlin spokesman Dmitry Peskov told reporters that BRICS was a group of countries united by a common vision of cooperation and prosperity.
Question: BRICS countries have sought to diversify trade and reduce dependence on the US dollar, while the US sees it as an economic threat. Evaluate the implications of de-dollarization for global trade and financial stability. What strategies should India adopt to protect its economic autonomy while engaging with BRICS?
3. RBI keeps powder dry for future cuts, minutes show
India’s Monetary Policy Committee voted unanimously earlier this month to keep interest rates unchanged and leave scope for future cuts depending on the situation, minutes released on Wednesday showed. However, there were differences of opinion among the members of the six-member panel over the monetary policy stance, with the two outside candidates – Nagesh Kumar and Ram Singh – favoring changing it from neutral to accommodative. An accommodative stance would signal that the central bank supports growth and signal that interest rates may move lower, while a neutral stance allows the rate-setting panel to decide the course based on the latest data. “Uncertainty has increased on the external front,” RBI Governor Sanjay Malhotra said. “…even though there is policy scope to cut the policy rate further, I think this is not an appropriate time for it as it will not have a desirable impact.” He said the benign outlook for headline and core inflation opens up policy space to further support growth. But he, like other members of the panel, was in favor of waiting for the full impact of fiscal and monetary measures to take effect in the economy, even if uncertainties regarding Donald Trump’s tariffs remain.
Question: RBI’s decision to maintain a neutral stance reflects the balance between inflation control and growth support. Discuss the challenges for India’s monetary policy in an environment of global uncertainties and rising
Protectionism. How should the RBI structure its policy to ensure stability without hampering growth?
4. Apple lobbies for tax law change to boost India plans
Sources said Apple is lobbying the Indian government to amend the income tax law to ensure the company is not taxed on the ownership of high-end iPhone machinery it provides to its contract manufacturers, an issue that is seen as a hindrance to its future expansion. The push coincides with Apple’s growing presence in India as it diversifies beyond China. Counterpoint Research says iPhone share in the Indian market is set to double to 8% by 2022. And while China still accounts for 75% of global iPhone shipments, India’s share is set to quadruple to 25% by 2022. Apple’s contract manufacturers Foxconn and Tata have invested billions of dollars to open five plants, but millions of them go into buying expensive machines for iPhone assembly. Experts said if Apple changes its business practices without convincing New Delhi to change a 1961 law covering foreign ownership of devices used in India, it would potentially face billions of dollars in additional taxes. In China, Apple buys the machines used to make iPhones and gives them to its contract manufacturers, and it is not taxed on them, even though it still owns them. But this is not possible in India as the Income Tax Act would consider such ownership by Apple as a so-called “business connection”, making the US firm’s iPhone profits liable to Indian taxes.
Q: Global technology companies like Apple are expanding their manufacturing footprint in India but they face legal and regulatory hurdles. Analyze how India’s taxation and investment policies can be improved to attract high-end manufacturing while protecting national revenue interests.
5. Unemployment rate increased to 5.3% in September
India’s headline unemployment rate rose to 5.3% in September, the highest since June, according to the Periodic Labor Force Survey (PLFS) data published by the National Statistical Office (NSO) on Wednesday. The rate is 20 basis points – a basis point is one hundredth of a percentage point – higher than in August, when it was at its lowest value in the monthly series, which began in April this year. Since the series started in April itself, it is not yet possible to compare the figures from the same month from year to year. Labor statistics are usually compared from year to year because some jobs, such as those in agriculture, are seasonal in nature. Labor force participation also increased along with a gradual increase in the unemployment rate in September. The labor force participation rate (LFPR), which measures the share of the population working or looking for a job, rose 30 basis points from August to 41.8% in September, the second highest in the monthly series after April, when the LFPR was 42%. The unemployment rate trend, when read along with the LFPR, paints a mixed picture of the September unemployment numbers. Read together, the data show that jobs rose in September, but did not keep pace with the increase in demand. This can also be read through the worker population ratio (WPR), which measures the share of workers in the population. The WPR in September was 39.6%, up 20 basis points from August and the second highest in the series after April, when the number was 39.8%.
Question: Rising unemployment amid rising labor force participation indicates structural tensions in India’s labor market. Critically analyze the effectiveness of existing employment schemes and propose measures to improve employment generation in both formal and informal sectors.
Editorial Snapshot
A. Despite tariff roulette
The ongoing Russian roulette in business does not mean that the larger economy has stopped developing in its own way. World Economic Outlook (WEO) issued by the International Monetary Fund (IMF) has drawn attention to this fact. WEO’s short-term commentary is a harbinger of optimism, albeit cautious. Contrary to many predictions, President Donald Trump’s tariffs have not caused the US to fall into recession or hyperinflation. The growth prospects of most major countries, including India, are slightly better than in the WEO’s July update. However, the IMF cautions that this should not be taken to mean that increased protectionism may not cause harm in the medium to long term. Additionally, it has identified four key factors here – Artificial Intelligence boom, structural crisis in the Chinese economy, rising fiscal pressures and declining institutional credibility. These are factors that can have deeply destabilizing effects through the bursting of asset bubbles, excessive investment in one economy creating headwinds for others and, ultimately, implosion and turmoil in financial and capital markets. As much as economists like to pretend that these issues are technical in nature, they also have deep political-economy roots that require careful calibration between market, state, and democratic processes. Their successful and safe resolution requires not only national but also international cooperation, which can happen only when domestic pressures are under control. This must be a new deal that prioritizes justice without magic economics or riotous speculators.
Question: The IMF has warned about medium-term risks of protectionism and financial instability despite short-term growth resilience. Critically examine how India can balance domestic economic priorities with international cooperation to reduce the risks of trade wars and global financial instability.
B. where have all the elephants gone
All is not well with India’s elephants. Population estimation exercise by Wildlife Institute of India (Status of elephants in India: DNA based contemporary estimate of all India elephant population or SAIEE) suggests a worrying decline in their numbers: the 2025 count is 22,446, 17% less than 2017, when the count was 27,312; Incidentally, the Center informed the Lok Sabha in 2024 that as per a contemporary estimate, India’s pachyderm population was 29,964. These surveys are not comparable due to methodological differences. Experts have also said that the DNA model used this time may have underestimated the number of elephants. These counters are valid, but there is more than enough evidence to be concerned about the health of the Indian elephant. At least three findings in the SAIEE report need to be read carefully. One, the once dense elephant population in the Western Ghats is rapidly declining due to changes in land use, including the expansion of commercial plantations. Two, habitats in east-central India are facing fragmentation and degradation from continued mining and infrastructure projects. This has led elephants to encroach into human habitations, leading to increased human-wildlife conflict. Three, the North East has the second largest population of elephants in India. But, exploitation of natural resources since colonial times has led to habitat loss and increased conflict with humans. Project Elephant, established in 1992, needs a fresh impetus.
Q: Recent surveys point to a worrying decline in elephant populations in India, although differences in methodology complicate comparisons. Discuss the ecological and socio-economic importance of elephants as a flagship species. Suggest policy and technical interventions to reconcile conservation with development pressures.
