India Weekly News Update: Economy, Infrastructure, Technology and Policy Highlights

Last week in India was marked by important developments across the economy, governance, infrastructure, science, and public welfare. From achieving a historic economic milestone to advancing space missions, renewable energy, and digital reforms, these events reflect how the country is balancing growth with stability. Each update carries its own weight, shaping policy direction and everyday life across the nation.

India Becomes the World’s Fourth-Largest Economy

• India crossed a major economic milestone last week by officially overtaking Japan to become the world’s fourth-largest economy, with an estimated GDP of around USD 4.18 trillion. This growth has been driven by strong domestic consumption, sustained infrastructure spending, expanding manufacturing output, and a resilient services sector. Government officials highlighted that India’s economy is now less dependent on exports alone and more balanced through internal demand, startups, and digital public infrastructure. Economists noted that consistent policy continuity and capital investment played a key role in achieving this position.

India–US Trade Negotiations Face Temporary Slowdown

• Trade discussions between India and the United States experienced a pause after scheduled high-level engagement did not materialize. The negotiations were focused on resolving tariff disputes, easing regulatory barriers, improving access for agricultural and industrial goods, and strengthening supply chain cooperation. While talks slowed, both sides reiterated that discussions are ongoing and that long-term strategic and economic ties remain intact. The delay reflects the complexity of aligning domestic economic priorities with international trade expectations.

Sharp Decline in Foreign Exchange Reserves

• India’s foreign exchange reserves saw their steepest weekly fall in over a year as the Reserve Bank of India intervened in currency markets to stabilize the rupee. The intervention was aimed at controlling excessive volatility caused by global interest rate uncertainty, capital outflows, and a stronger US dollar. Despite the decline, reserves remain at levels considered sufficient to cover imports and external obligations. Financial experts said the move reflects a proactive approach to maintaining currency stability rather than a structural weakness.

Indian Stock Markets Record Weakest Weekly Performance in Months

• Indian equity benchmarks ended last week with their worst performance in over three months. Selling pressure was observed across banking, IT, and metal stocks, largely influenced by global risk aversion, concerns over trade protectionism, and higher bond yields in advanced economies. Market analysts emphasized that domestic fundamentals remain stable, corporate earnings expectations are intact, and the correction is viewed as short-term rather than a trend reversal.

Indian Railways Implements TAG 2026 Timetable

• Indian Railways launched its TAG 2026 timetable, introducing 122 new train services and increasing operational speeds on 549 existing routes. The update focuses on reducing travel time, improving punctuality, and optimizing route efficiency. Freight operations are also expected to benefit through better scheduling and reduced congestion. The timetable revision directly impacts daily commuters, long-distance travelers, and logistics movement across key economic corridors.

ISRO Prepares for PSLV-C62 Mission

• The Indian Space Research Organisation confirmed preparations for the PSLV-C62 launch, which will deploy an advanced Earth observation satellite along with multiple domestic and international payloads. The satellite is designed to enhance data collection for agriculture monitoring, disaster response, urban development, and environmental analysis. The mission further strengthens India’s reputation for reliable and cost-effective space launches and deepens collaboration with global partners.

Indigenous Supercomputer PARAM SHAKTI Goes Live

• Under the National Supercomputing Mission, India activated the PARAM SHAKTI supercomputer at IIT Madras. The system is designed to support advanced research in artificial intelligence, computational fluid dynamics, climate modeling, material science, and aerospace engineering. This development reduces reliance on foreign computing infrastructure and boosts India’s capacity for high-end scientific research and innovation.

Government Push for Practical AI Solutions

• The Prime Minister called on Indian AI startups to focus on real-world, locally relevant applications rather than experimental or imported models. Priority areas highlighted included healthcare diagnostics, agriculture optimization, education tools, language translation, and governance systems. The initiative aligns with India’s broader vision of building ethical, inclusive, and scalable AI solutions tailored to national needs.

Security Intensified Ahead of Republic Day

• With Republic Day approaching, security arrangements were significantly strengthened across major cities and sensitive regions. Measures included increased police deployment, surveillance upgrades, traffic monitoring, and inter-agency coordination. Authorities emphasized preparedness to manage large public gatherings and prevent any disruption during national celebrations.

Political Protests and Administrative Changes in Punjab

• Punjab witnessed large-scale protests following remarks perceived as disrespectful to Sikh religious sentiments. The protests led to heightened political debate around accountability and responsible public communication. Simultaneously, administrative reforms were announced to digitize rural employment programs, increase guaranteed workdays, and ensure faster and more transparent wage payments to beneficiaries.

Public Healthcare Outreach in Lakshadweep

• The Indian Navy announced a multi-specialty medical outreach program in Lakshadweep aimed at providing advanced healthcare services to island residents. The initiative includes specialist consultations, diagnostic services, and treatment support. Such efforts highlight the government’s focus on bridging healthcare gaps in remote and geographically isolated regions.

India Crosses Major Solar Energy Capacity Milestone

• India’s installed solar power capacity crossed 82 gigawatts, with significant contributions from large-scale solar parks and rooftop installations. States like Gujarat, Rajasthan, and Karnataka led capacity additions. The milestone supports India’s climate commitments, reduces fossil fuel dependence, and strengthens energy security while creating jobs in the renewable sector.

Sustainable Infrastructure Using Bio-Bitumen

• The government advanced the use of bio-bitumen made from agricultural residue in road construction. This innovation reduces petroleum usage, cuts emissions, and provides an additional income stream for farmers by utilizing crop waste. Pilot projects showed improved road durability, making it a viable alternative for sustainable infrastructure development.

Severe Cold Wave Affects Northern India

• Northern states experienced intense cold conditions, with temperatures dropping significantly below seasonal averages. Dense fog disrupted road, rail, and air transport, while health advisories were issued for vulnerable populations. The weather event emphasized the need for better urban preparedness and climate-resilient infrastructure.

The events of last week underline India’s steady movement toward long-term economic strength, technological self-reliance, and sustainable development. While global uncertainties continue to influence markets and diplomacy, domestic reforms, infrastructure expansion, and innovation-led initiatives show a clear focus on resilience and future readiness. Together, these developments provide a strong snapshot of India’s current priorities and direction.

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