Latest India News Summary: Major Events from Last Week (Politics, Economy, Policy)

Last week in India saw major developments that directly affect daily life, governance, and the economy. From new railway launches and government recruitment drives to policy changes and national-level programs, the week carried stories that matter beyond social media trends. Here is a clear and structured roundup of the most important non-entertainment news from across the country.

UAE President Sheikh Mohamed bin Zayed visited India (Jan 19, 2026)

UAE President Sheikh Mohamed bin Zayed Al Nahyan visited India on January 19, 2026, marking a high-level diplomatic engagement between the two countries. The visit focused on strengthening cooperation in several major areas, including

• trade and investment

• energy collaboration

• defence and security ties

• strategic partnership frameworks

• people-to-people relations, including the Indian diaspora in the UAE

India and the UAE have been increasing cooperation under the broader Comprehensive Strategic Partnership, and this visit further reinforced long-term collaboration. The leaders discussed strengthening bilateral economic engagement and improving cross-border investments, especially in infrastructure, technology, and logistics.

RBI announced measures to inject liquidity into banking system

The Reserve Bank of India (RBI) announced major steps last week to manage liquidity and maintain stable money market conditions. Two key announcements were:

• A 90-day Variable Rate Repo (VRR) operation to inject short-term funds into the banking system.

• A USD/INR buy-sell swap auction of $10 billion with a three-year tenor, aimed at injecting durable liquidity.

Such measures usually influence:

• availability of funds with banks

• short-term money market stability

• capacity of banks to lend to businesses and retail borrowers

• interest rate transmission in the economy

This move came amid increased banking system liquidity needs and reflects RBI’s active stance toward maintaining financial stability.

Heavy snowfall and severe winter disrupted normal life in North India

Last week, intense winter conditions hit parts of North India, particularly in:

• Uttarakhand

• Himachal Pradesh

• hill regions of Jammu & Kashmir

Heavy snowfall triggered disruptions such as:

• closure of key roads and mountain highways

• vehicles stranded in high-altitude regions

• power supply interruptions in some districts

• emergency rescue operations by SDRF/NDRF and local authorities

Reports mentioned rescue operations in hill districts where people were trapped due to snow buildup, and travelers faced difficulties due to sudden changes in weather and blocked routes. This also led to delays in local transport and tourism activity.

Draft National Electricity Policy 2026 proposed automatic annual tariff hikes

A policy development last week gained national attention: the Draft National Electricity Policy (NEP) 2026. One of the major points under discussion is a proposal for automatic annual electricity tariff increases, especially in situations where:

• electricity regulators do not issue tariff orders on time

The policy aims to address long-standing issues related to:

• financial losses of power distribution companies (DISCOMs)

• delayed tariff revisions

• uneven implementation of cost-reflective tariffs across states

However, the proposal also raised concerns among critics about consumer burden and reduced oversight. If implemented, it could change how annual electricity tariffs are revised across India.

Supreme Court uploaded new orders and updates on ongoing cases

Last week saw ongoing judicial activity with fresh Supreme Court orders and case updates uploaded on the official Supreme Court of India portal. These included multiple matters spanning:

• constitutional issues

• civil disputes

• criminal matters

• administrative and regulatory issues

The Supreme Court updates are significant because they reflect ongoing legal developments and the court’s continuing work on high-impact litigation and governance-related matters. Regular orders and hearings also influence future petitions and implementation of laws.

Credit flow increased: commercial sector borrowing continued growing

Economic updates last week highlighted that credit flow to India’s commercial sector continued to rise, supported by:

• bank credit growth

• higher financing by NBFCs

• corporate bond issuances

• increased borrowing by firms for expansion and working capital

Commercial credit expansion is often tracked as a sign of business confidence and broader economic activity. Rising credit flow indicates steady demand from industries and companies, especially in sectors requiring continuous capital movement.

PM flagged off 3 Amrit Bharat Express trains in Kerala

Prime Minister Narendra Modi inaugurated new rail services in Kerala, including three Amrit Bharat Express trains and one passenger train. This was part of expanding rail connectivity and improving long-distance travel links between Kerala and other Indian regions.

The launch highlighted:

• upgraded passenger connectivity

• stronger interstate rail network

• focus on infrastructure and transport expansion

The president of India planned to address the nation on Republic Day eve

As part of Republic Day-related national events, the Press Information Bureau (PIB) reported that the President of India was scheduled to address the nation on the eve of Republic Day.

These national addresses generally cover:

• key priorities of the country

• major achievements and governance focus

• national unity and constitutional values

The government continued large-scale recruitment drive under Rozgar Mela

Under the Rozgar Mela, the Prime Minister was set to distribute more than 61,000 appointment letters to newly recruited youth in government roles.

This is linked to:

• public sector hiring across departments

• employment creation through government recruitment

• strengthening manpower in central services and institutions

GDP calculation overhaul discussion picked up pace (base year rebasing)

A major economy-related development reported last week was about India’s ongoing work toward:

• rebasing the GDP base year to 2022–23

• improving GDP estimation using more granular datasets

This impacts how India measures:

• real growth

• sector-level performance

• quarterly GDP accuracy

• state-level economic accounts

Supreme Court decision highlighted scrutiny of DTAA benefits and tax substance

A Supreme Court judgement related to DTAA (Double Taxation Avoidance Agreement) triggered attention around India’s taxation approach.

Key highlights discussed in reports:

• DTAA benefits should not be claimed mechanically

• reliance on paperwork alone (like TRC) may not be sufficient

• emphasis on economic substance and control/management

This is relevant for:

• cross-border investments

• offshore structures

• treaty-based tax planning

Tamil Nadu CM announced multiple welfare measures

Tamil Nadu Chief Minister M.K. Stalin announced a package of welfare measures, including:

• plan for one lakh housing units under a state scheme

• rural road upgrades

• pension-related improvements for certain worker categories

• expanded pension beneficiary coverage in the state

This was presented as a governance step focused on:

• housing development

• rural infrastructure

• social security upgrades

Overall, last week’s developments showed India’s focus on strengthening public infrastructure, improving employment opportunities, managing economic planning, and pushing policy reforms. These updates may look like separate headlines, but together they show the direction the country is moving in—toward larger connectivity projects, stronger institutions, and more active governance.

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