Election Affidavits - TamilNady Assembly 2026

 Based on the provided affidavits, the following table summarizes the key details for the candidates, including their party affiliation, assets, and most recently reported annual income.

Candidate Name	Party Name	Movable Assets (Total Value)	Immovable Assets (Approx. Market Value)	Total Income as per PAN (Latest FY Reported)
S. Seeman	Naam Tamilar Katchi	Rs. 39,81,500	Nil	Rs. 6,65,820 (FY 2024-25)
A.P. Poornima	Dravida Munnetra Kazhagam	Rs. 73,53,090	Rs. 98,95,000	Rs. 4,73,880 (FY 2024-25)
K.N. Sekar	Pattali Makkal Katchi	Rs. 4,31,97,486	Rs. 10,08,59,200	Rs. 25,56,397 (FY 2024-25)
S. Saravanan	AIADMK	Rs. 12,49,025	Rs. 55,35,400	Rs. 7,05,780 (FY 2025-26)
S.M. Sukumar	AIADMK	Rs. 10,73,33,150	Rs. 12,77,36,220	Rs. 41,87,470 (FY 2024-25)
Anbil Mahesh Poyyamozhi	Dravida Munnetra Kazhagam	Rs. 1,48,19,858.50 [132m]	Rs. 3,57,00,000 [132m]	Rs. 16,86,580 (FY 2025-26) [132b, 132m]
K.N. Nehru	Dravida Munnetra Kazhagam	Rs. 1,25,09,287.94	Rs. 1,17,57,000	Rs. 17,09,130 (FY 2024-25)

Election affidavits : TamilNadu Assembly 2026

 Based on the provided election affidavits, here is a summary of the candidates with their declared total assets (the sum of movable and immovable assets) and their total income for the most recent financial year as per their PAN declarations:

Candidate Name	Total Assets (INR)	Total Income (FY 2024-25) (INR)
S. Joseph Vijay	630,74,44,206	184,53,56,290
M.K. Stalin	6,26,56,360	30,94,260
S. Udhayanidhi	20,64,32,416	10,40,620
Palanivel Thiaga Rajan	39,02,11,782	25,25,620
Sundar C	23,79,02,640	80,41,240
S. Gokula Indira	10,46,11,197	7,87,530
K.T. Rajenthra Bhalaji	3,35,07,659	14,85,298
Nithya Sugumar	92,80,508	Nil (ஏதுமில்லை)

Summary of Declarations:

• S. Joseph Vijay: Declared the highest total income of Rs. 184,53,56,290 for the financial year 2024-2025. His total assets exceed Rs. 630 crore, consisting of Rs. 410.58 crore in movable assets and Rs. 220.15 crore in immovable assets.
• M.K. Stalin: Declared a total income of Rs. 30,94,260 for FY 2024-2025. His total assets are valued at approximately Rs. 6.26 crore.
• Sundar C: His total assets of Rs. 23.79 crore are largely comprised of immovable property (residential buildings) valued at Rs. 20.82 crore.
• Palanivel Thiaga Rajan: Declared total assets of Rs. 39.02 crore, with movable assets (including various foreign currency deposits) accounting for Rs. 21.35 crore.
• Nithya Sugumar: Listed her income for FY 2024-2025 as Nil. Her total assets are valued at Rs. 92.80 lakh.

Newspaper Summary 100426

 The detailed version of the article summarized on the front page as "Drop in Production" (appearing on page 10 as "Rain, hailstorms may dent wheat output") is reproduced below:

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Rain, hailstorms may dent wheat output

By Prabhudatta Mishra, New Delhi

Unseasonal rain and hailstorms in March and April have impacted wheat crops across 111 districts in nine States, leading to an estimated 5-10 per cent drop in overall production.

Agriwatch, in a report for the Roller Flour Millers Federation of India, warned that up to 30 per cent of the harvest in affected areas suffers from quality degradation, including shrivelled grains and lustre loss. While the government originally estimated a record wheat production of 120.21 million tonnes this year, Agriwatch informed the industry body that damage in the 111 affected districts ranges between 3 per cent and 25 per cent due to the recent weather vagaries.

BADLY HIT

In Uttar Pradesh, Punjab, Haryana, and Bihar, harvesting is only 10-15 per cent complete. Damage has been reported in 25-30 per cent of the area where crops were in the maturity-to-harvest stages.

The maximum damage (15-25 per cent) was reported in:

• Punjab: Amritsar, Hoshiarpur, and Rupnagar districts.
• Haryana: Rewari.
• Uttar Pradesh: Hamirpur.
• Bihar: Begusarai.
• West Bengal: Dakshin Dinajpur.

Additionally, 51 districts across eight States may face a 3-5 per cent crop loss. Bikaner was noted as the most badly affected district specifically regarding hailstorm damage occurring on April 2.

PROCUREMENT AND QUALITY CONCERNS

The government aims to procure 303.36 lakh tonnes (lt) of wheat for the Central Pool by June 30. Due to the rain damage, the state governments of Rajasthan and Haryana have requested a relaxation in Fair Average Quality (FAQ) norms for procurement.

Food Secretary Sanjeev Chopra stated that while the overall outlook remains good, central teams have been dispatched to these states to assess the ground-level situation. He noted, “If required, we’ll give them the relaxation very soon so that farmers do not suffer any problem in selling the produce”.

A preliminary report from Agriwatch further mentioned that farmers in many affected districts suffered from lodging (bending of the crop stalks) and damage to matured crops, which could lead to potential lustre loss in the grain.

The full article titled “As India & US look to revive trade deal talks, delegation to visit Washington this month” (referenced on the front page as US Trade Talks) is reproduced below:

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As India & US look to revive trade deal talks, delegation to visit Washington this month

By Amiti Sen, New Delhi

In a move that may put bilateral trade talks back on track, US Ambassador to India Sergio Gor on Thursday said a high-level Indian delegation will visit Washington later this month, signalling a renewed push to finalise the proposed interim trade deal.

The development comes after negotiations slowed amid uncertainty over US tariff measures after the US Supreme Court invalidated the ‘reciprocal tariffs’.

“The United States and India have previously agreed to a trade deal, and we look forward to welcoming an Indian delegation to Washington later this month,” Gor said in a post on X, following his meeting with US Trade Representative Jamieson Greer.

The visit will also provide India an opportunity to raise concerns over two ongoing Section 301 investigations launched by the US Trade Representative: one related to excess manufacturing capacity and the other to forced labour, which could potentially lead to more tariffs.

DETAILS UNCLEAR

Sources in the Indian government confirmed the delegation visit, but said it was still at a planning stage. “The details of the visit of the Indian trade delegation to Washington are being worked out,” the source said.

The two nations announced a preliminary bilateral trade deal framework on February 2, 2026, but it did not get formalised or signed as the US Supreme Court gave its judgment on February 20 invalidating the reciprocal tariff regime.

The US has indicated that it considers the framework deal—under which India agreed to eliminate or sharply reduce tariffs for most industrial goods and also lower duties on a wide range of US agricultural and food products—as good as done.

BETTER BARGAIN

But India wants more tariff concessions so that it maintains its advantage over competing countries such as Bangladesh and Vietnam, sources said.

“In the framework deal, Washington offered to bring down reciprocal tariffs on India to 18 per cent (from 25 per cent), which was slightly lower than those on competing countries. But now that reciprocal tariffs are gone and all countries face a uniform short-term tariff of 10 per cent, India’s tariff concessions under the deal must put it at an advantage over the others,” the source explained. Otherwise, the trade deal will not make sense.

New Delhi is also likely to draw attention to the ongoing Section 301 probes, involving India among other countries, as it could potentially negate tariff advantages of the trade pact.

Separately, Foreign Secretary Vikram Misri is on a three-day visit to Washington this week to engage senior US officials on trade, defence and global developments, amid ongoing trade investigations, fluid tariff measures and a volatile security situation in West Asia.

The full article titled ‘India now seen as safe anchor, offers stability and prospects’ is reproduced below:

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‘India now seen as safe anchor, offers stability and prospects’

By Shishir Sinha, New Delhi

“India is a safe anchor” amid global uncertainty, Shaktikanta Das, Principal Secretary to the Prime Minister, said here on Thursday while suggesting a seven-point agenda for the corporate sector.

“India is now seen as a safe anchor because it offers stability, predictability and prospects of long-term growth at a time when much of the world is marked by conflict, volatility and policy uncertainty,” Das said, addressing the AIMA National Leadership Conclave.

RESILIENT FRONT

The former RBI Governor noted that the global economy continues to face an “unsettled and charged environment” marked by geopolitical fragmentation, supply chain disruptions and uneven growth, with risks “decisively skewed to the downside”.

Against this backdrop, Das highlighted India’s strong economic performance, stating that real GDP growth stood at 7.6 per cent in FY26, with an average growth of 7.8 per cent over the past five years. “India’s resilience does not alone explain the full story. India did not just endure the period of turbulence. It transformed through it,” he said.

Das also noted that several factors underpin this resilience, including:

• Macroeconomic stability
• Policy consistency
• Infrastructure-led development
• Strong domestic demand

The top official emphasised the importance of inflation control, describing it as critical for economic stability. “Inflation has often been described as a tax on the poor. A low inflation would mean increasing the spending power of the consumer,” Das said.

GROWTH DRIVERS

Highlighting India’s policy response during crises, he said the country adopted a calibrated approach. “Fiscal and monetary expansion were followed by a timely rollback, thus froth was not allowed to accumulate or overrun the system”.

Looking ahead, Das said India’s growth drivers—ranging from demographic advantage and rising consumption to infrastructure push and digital public infrastructure—are structural and durable.

Das presented seven suggestions for Indian businesses to build organisational resilience during these volatile times:

1. Strengthen balance sheets.
2. Build new supply chains.
3. Protect jobs.
4. Reskill the available manpower.
5. Diversify into new markets (especially for exporters).
6. Invest strategically for future readiness.
7. Capitalise on new opportunities.

The full article titled “High turnout signals a tight contest” regarding the Kerala Assembly elections is reproduced below:

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High turnout signals a tight contest

THE FINAL COUNTDOWN. State sees robust participation of urban voters in Thiruvananthapuram, Ernakulam and Kozhikode By Our Bureau, Thiruvananthapuram

In the first Assembly election after the SIR exercise, Kerala witnessed a high voter turnout on Thursday, underscoring the likelihood of a tightly contested verdict in which every vote could prove decisive. The turnout touched 78.01 per cent at 8 pm, surpassing the 76 per cent recorded in 2021.

STRIKING FEATURE

A striking feature of the day was the robust participation of urban voters. Cities such as Thiruvananthapuram, Ernakulam and Kozhikode witnessed a surge, with even satellite towns reflecting similar enthusiasm. Rural areas largely mirrored this trend, with long queues forming early and persisting through much of the day.

In Thiruvananthapuram, key constituencies like Nemom, Kazhakkoottam and Vattiyoorkavu had recorded nearly half the total turnout seen in 2021 by noon, indicating a marked shift in urban voting patterns.

EVM GLITCH

Polling began at 7 am with women and elderly voters arriving early. While there was a brief lull in the early afternoon, brisk polling restored later in the day. However, sporadic malfunctioning of voting machines caused significant delays in some locations, with some voters reportedly waiting for up to six hours.

Younger voters, particularly from Gen Z, turned up in increasing numbers as the day progressed. Some were motivated by the State Election Commission’s incentives, which included complimentary halwa and free rides provided by local transport.

SURGE IN PARTICIPATION

Chief Electoral Officer Rethan Khelkar noted at noon that polling could approach 90 per cent. He attributed the surge partly to the SIR exercise, which "cleaned" the rolls and brought in "real voters with a face". There were also instances of overseas voters returning specifically to cast their ballots, motivated by social media campaigns.

POLITICAL FRONTS

As polling peaked, the State’s three principal political fronts expressed confidence:

• Left Democratic Front (LDF): The ruling CPI (M)-led front expressed optimism about securing a record third consecutive term.
• United Democratic Front (UDF): The Opposition projected a sweeping comeback, claiming it would cross the 100-seat mark in the 140-member Assembly.
• National Democratic Alliance (NDA): The BJP-led alliance sought to position itself as a potential kingmaker, maintaining that neither traditional front would secure the halfway mark of 71 seats.

Voting was particularly intense in Kannur district, a long-time CPI(M) bastion currently marked by internal dissidence. The high-stakes contest was also accompanied by allegations of bogus/illegal voting in some areas.

The full article titled “Israel allows import of Indian bhindi seeds” is reproduced below:

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Israel allows import of Indian bhindi seeds

By Our Bureau, New Delhi

Israel has allowed India market access for a lesser-known agricultural product — okra (bhindi or lady’s finger) seeds — with a permit system. India’s total export of okra, including in seed form, was 6,504 tonnes, worth $6.44 million (or ₹54.85 crore) in 2024-25, with Germany as the top buyer.

APEDA NOTIFICATION

In a notice on its website, India’s agri export promotion body Apeda said a communication had been received from NPPO, Israel, conveying market access for the export of Indian okra seeds (Abelmoshus esculentus).

“The export of okra seeds to Israel are subject to the condition that a phytosanitary certificate should be endorsed with an additional declaration,” said Apeda General Manager Vinita Sudhanshu.

IMPORT PERMIT

The required declaration must state: “The seeds were officially tested and found free from Fusarium oxysporum f.sp. vasinfectum and Okra enation leaf curl virus.”

Sudhanshu has asked interested exporters to avail themselves of the opportunity and comply with the requirement for export of seeds from India to Israel. Additionally, NPPO Israel has stipulated its own importers to obtain an “import permit” from them if they wish to import okra seeds from India.

EXPORT DATA

During the April-January period of FY26, India exported 4,841.08 tonnes of okra worth $4.47 million (₹39.17 crore). Apart from Germany, other buyers of Indian okra include Nepal, the UAE, the UK, Bhutan, Kuwait, Qatar and Singapore.

The full article titled “‘Theaterisation of command’ 90% complete, says Air Marshal Ashutosh Dixit” is reproduced below:

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‘Theaterisation of command’ 90% complete, says Air Marshal Ashutosh Dixit

By Our Bureau, New Delhi

Air Marshal Ashutosh Dixit, Chief of Integrated Defence Staff, on Thursday, announced that more than 90 per cent of the work on the theaterisation of the Indian Armed Forces has been completed, signalling that the much-awaited major military restructuring exercise has reached its final stage.

The transformation, expected to be announced by next month, would lead to single-service commands getting subsumed into a tri-services architecture, each led by a three-star commander.

“Our move towards joint structures and theatre commands — with planning now reported to be more than 90 per cent complete — is a historic opportunity,” he said during his opening address at the second edition of Ran Samwaad 2026 at Bengaluru. He, however, cautioned that structures alone do not guarantee synergy.

“Cultural integration is what makes structure come alive. Jointness must evolve from mere coordination to genuine unity of effort,” he advocated in his remarks on “Multi-Domain Operations: An Imperative for Addressing Conventional and Irregular Threats”.

That requires transparency in information sharing, clarity of authority, and — most fundamentally — mutual trust, he remarked, hinting at issues that would require ironing out. He also flagged the need for command accountability and responsibility as the use of unmanned and autonomous systems increases.

DOMAIN JOINTNESS

Chief of Army Staff General Upendra Dwivedi, during his address, emphasised that Operation Sindoor demonstrated India’s progression towards “domain jointness” and described the military offensive inside Pakistani territory as a “defining case-study” of the operational significance of integration.

“Operation Sindoor was India’s most powerful tool of progression towards domain jointness. But we need to achieve domain integration and fusion,” General Dwivedi said in his speech on “Land Forces visualisation of Multi Domain Operation”.

He also pitched for the creation of an information warfare organisation and a psychological defence division following Operation Sindoor. He noted, “Fifteen per cent of our effort was on managing the disinformation campaign”.

He cautioned, however, that key challenges remain, particularly in synchronising operations across strategic, operational, and tactical levels, and addressing the growing prevalence of hybrid or grey-zone warfare. “These are typically below the conventional military threshold, with the goal to exploit adversary vulnerability,” he said. He added that non-kinetic operations are increasingly taking precedence.

The full article titled “India grants waivers to 2 cargoes from Iran” is reproduced below:

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India grants waivers to 2 cargoes from Iran

New Delhi: With a view to speeding delivery of energy supplies from the Gulf, India recently granted waivers to allow two Iranian cargoes aboard an older tanker and another under international sanctions to enter its ports, two officials familiar with the matter said.

India is facing its worst gas crisis in decades, with the government rationing supplies to industry to ensure households are supplied with the cooking gas.

REUTERS

The full article titled “RBI’s new guidelines aim to increase efficiency in cross-border inward payments” is reproduced below:

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RBI’s new guidelines aim to increase efficiency in cross-border inward payments

By Our Bureau, Mumbai

To enhance the efficiency of cross-border inward payments, the Reserve Bank of India has issued new guidelines, whereby banks may put in place a straight through process for crediting the inward payments to the account of individual residents.

This aforementioned process should be based on their risk assessment and subject to compliance with extant FEMA (Foreign Exchange Management Act) guidelines. Banks may, within a reasonable time frame, also endeavour to provide a digital interface to their customers to facilitate foreign exchange transactions, including submission of documents or information, and monitoring of transactions.

NOTIFY CUSTOMERS

The guidelines require banks to inform their customers of the receipt of cross-border inward transactions immediately on receipt of an inward message. Messages received after the close of operating hours of banks will be informed to the customer immediately at the start of the next business day.

The guidelines require banks to undertake reconciliation and confirmation of credit in the nostro account (held by a domestic bank in a foreign bank) frequently, either on a near-real-time basis or at periodic intervals. The reconciliation interval should normally not exceed one hour.

Banks should endeavour to credit the inward payments received during the foreign exchange market hours within the same business day to the beneficiary’s account, per the guidelines. Further, they should credit the inward payments received after market hours on the next business day, subject to compliance with the extant FEMA and other regulatory requirements.

The full article titled ‘India has ample buffers to deal with W. Asia crisis’ is reproduced below:

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‘India has ample buffers to deal with W. Asia crisis’

By Shishir Sinha, New Delhi

India has “ample” buffers to deal with the West Asia crisis, but a prolonged conflict could pose downside risks, the World Bank said on Thursday.

“Risks are tilted to the downside as prolonged periods of elevated oil prices can significantly impact the Indian economy, but risks are cushioned by ample buffers,” World Bank Lead Economist for India Aurelien Kruse said while presenting the India Development Update.

ECONOMIC BUFFERS

According to the World Bank, these buffers comprise a net energy import share of 2.8-3 per cent of GDP and substantial foreign exchange reserves. The Bank has raised India’s growth forecast for the current fiscal by 30 basis points to 6.6 per cent from its earlier estimate of 6.3 per cent, though this remains lower than the previous fiscal year.

In its South Asia Economic Update report, the Bank noted that India’s growth accelerated to 7.6 per cent in FY26 from 7.1 per cent in FY25, owing to strong domestic demand and export resilience.

RIGHT STRUCTURE

Comparing the geopolitical situation to an “earthquake”, Kruse remarked, “But India has the right structure of house and fire trucks are coming”. He emphasized that India remains the fastest-growing large economy, supported by strong domestic consumption and better-than-anticipated performance in exports and investment.

The World Bank also commended the Indian government’s strategy for handling the energy crisis. Kruse stated that authorities have struck a right balance by managing supply without resorting to massive rationing and by maintaining relatively constant retail oil prices to avoid sharp, non-linear adjustments. However, he cautioned that massive risks remain tilted to the downside.

FISCAL OUTLOOK

World Bank Regional Practice Director for South Asia (Prosperity), Sebastian [last name not provided], noted that India and the region continue to be very strong performers compared to others.

However, the Bank expects India’s current account deficit in FY27 to increase to 1.8 per cent of GDP due to a higher energy import bill. The general government fiscal deficit is projected to increase marginally to 7.6 per cent of GDP, compared to 7.3 per cent in the absence of the conflict, as higher energy prices drive up spending on fertilizer and fuel subsidies.

Strengthening State Ownership: Good Practices and Policy Guidance

 A state ownership policy is a high-level framework or legal document that articulates the rationales, objectives, governance structures, and oversight mechanisms for state-owned enterprises (SOEs). Within the broader context of strengthening state ownership, these policies are designed to ensure that SOEs are managed responsibly, accountably, and with integrity, allowing them to contribute effectively to competitiveness, economic resilience, and sustainable development.

The Necessity of an Ownership Policy

The sources highlight several critical reasons why a structured ownership policy is essential for professionalizing state ownership:

• Clarifying the State’s Dual Role: SOEs operate at the intersection of the public and private sectors, which creates complex governance challenges. A policy helps separate the state's role as an economic actor (owner) from its responsibilities as a policymaker and regulator, reducing potential conflicts of interest.
• Preventing Fragmentation: Without a unified policy, ownership rationales often remain scattered across different sectoral laws or development plans, leading to overlapping or conflicting objectives and unclear lines of accountability.
• Mitigating Risks: Because citizens are the "ultimate owners" but lack direct oversight, SOEs are more vulnerable to political influence, inefficiency, and corruption. A clear policy serves as a "compass" for responsible ownership and sets boundaries to protect SOE management autonomy.
• Building Trust: Publicly articulating the "why" and "how" of state ownership fosters transparency for citizens, investors, and market participants, ultimately supporting a level playing field.

Key Components and Scope

A comprehensive ownership policy should define the aims and means of state ownership through several core elements:

• Ownership Rationales: The policy must explicitly state why the government owns specific enterprises. These rationales generally fall into categories such as national interest/sovereignty, economic development, social/public service, and correcting market failures.
• Institutional Arrangements: It describes how ownership rights are exercised within the state administration, identifying the specific government bodies responsible for oversight and their respective mandates.
• Governance Framework: This includes mechanisms for institutional coordination, requirements for regular reporting, and disclosure standards to ensure transparency.
• Portfolio and Strategic Goals: The policy outlines the SOE portfolio and sets clear expectations, distinguishing between enterprises with commercial goals and those with public service obligations.
• Reform and Privatization Plans: It should include information on reform priorities and the criteria for potential divestment when an SOE no longer serves its original rationale.

Good Practices for Implementation and Review

For an ownership policy to be effective in strengthening the state's role, it must be more than a static document:

• Whole-of-Government Approach: The policy should be developed as a collective effort involving line ministries, audit institutions, and regulators, ideally receiving high-level political endorsement from the Cabinet or Head of Government.
• Public Disclosure: Transparency is a cornerstone of good practice; almost all countries with a policy publicly disclose it to provide clear benchmarks for market participants.
• Living Document Status: Policies must be reviewed periodically (e.g., following electoral cycles) to ensure they reflect evolving economic conditions and national priorities.
• Monitoring Performance: Effective implementation requires robust oversight tools, such as annual aggregate reports, which provide a "bigger picture" of the portfolio’s financial and non-financial performance.

The sources outline a structured six-step process for developing and reviewing a state ownership policy, framing it as a vital tool for professionalizing state ownership and ensuring that state-owned enterprises (SOEs) contribute to competitiveness and sustainable development. This process is designed to move governments away from fragmented legal frameworks toward a unified, transparent approach.

The Six-Step Development Process

1. Define Rationales for State Ownership The foundation of a strong policy is a clear articulation of why the state owns specific enterprises. Governments should identify and map all existing references to ownership rationales across various laws and consolidate them into a single framework. These rationales typically fall into four categories: national interest/sovereignty, economic development, social/public service, and addressing market failures. It is a good practice to distinguish between enterprises with fully commercial mandates and those with public service obligations (PSOs).

2. Carry Out Stakeholder Consultations Effective development is a collective effort. Engaging both internal and external stakeholders is crucial for securing acceptance and building consensus.

• Internal stakeholders include line ministries, the Ministry of Finance, regulators, and audit institutions.
• External stakeholders encompass parliamentary committees, SOE governing bodies, employees, investors, and communities affected by SOE operations.

3. Draft or Revise the Policy The drafting stage must incorporate all essential elements, including high-level expectations, governance principles, and reporting requirements. The sources emphasize setting a realistic timeframe for this stage; rushing the process to meet political momentum or loan conditions can lead to misalignments with other laws, necessitating further revisions.

4. Obtain High-Level Political Endorsement To ensure legitimacy and a whole-of-government approach, the policy should ideally be approved by a high-level body such as the Cabinet of Ministers or the Head of Government. This ensures that all involved state entities are aligned and committed to the policy's objectives.

5. Publicly Disclose the Ownership Policy Public disclosure is necessary for transparency and accountability. A publicly available, consolidated document serves as a "one-stop shop" for information on state ownership practices, providing clear benchmarks for market participants and building trust with the general public.

6. Monitor and Assess Implementation and Revision The process does not end with publication. Governments must establish mechanisms for implementation, including oversight systems and regular reporting. While the policy should be a "living document" reviewed periodically—often aligned with electoral or budgetary cycles—care should be taken not to change overall rationales too frequently to maintain stability for SOE planning.

Larger Context of Good Practices

In the broader context of strengthening state ownership, this six-step process serves several critical functions:

• Clarity and Predictability: It clarifies the state’s role as an economic actor versus its role as a regulator, reducing conflicts of interest and the risk of political interference.
• Accountability: By establishing clear expectations and monitoring mechanisms—such as annual aggregate reports—the process ensures that those exercising ownership rights act as responsible "trustees of the public interest".
• Strategic Alignment: It ensures that SOE activities remain aligned with national priorities and that ownership is only maintained as long as the original rationales remain valid.

Ownership rationales are the formal justifications for why a government owns state-owned enterprises (SOEs), serving as the foundational "compass" for responsible state ownership. In the larger context of strengthening state ownership, these rationales provide the necessary clarity to distinguish the state's role as an economic actor from its role as a regulator and policymaker.

Core Categories of Ownership Rationales

While no single model applies to all countries, the sources classify common ownership rationales into four main categories:

• National Interest and Sovereignty: This includes safeguarding national or economic security, maintaining control over strategic infrastructure (like energy or defense), and ensuring a stable supply of natural resources.
• Economic Development: Governments use SOEs to promote long-term growth, provide development finance where private markets are underdeveloped, anchor strategic firms locally, and drive national innovation agendas.
• Social and Public Service: This rationale focuses on providing universal, affordable, and equitable access to essential services—such as healthcare, utilities, or postal delivery—that the market may not sufficiently provide on its own.
• Market Structure and Corrective Actions: This involves regulating natural or policy monopolies (like electricity transmission or alcohol sales) and taking temporary ownership of distressed firms to maintain systemic stability.

The Role of Rationales in Good Governance

Clearly articulated rationales are considered a cornerstone of good governance for several reasons:

• Legitimacy and Public Trust: Because citizens are the "ultimate owners" of SOEs, governments act as trustees of the public interest. Defining rationales justifies the use of public resources and reduces the risk of SOEs being misused for patronage or short-term political gain.
• Transparency and Level Playing Field: Publicly disclosing these rationales fosters trust with investors and market participants by signaling predictability and consistency in how the state manages its portfolio.
• Strategic Consolidation: Good practice suggests moving away from fragmented rationales scattered across various sectoral laws and instead consolidating them into a single, coherent framework.
• Basis for Privatization: Rationales provide the logical foundation for divestment; when the original justification for state ownership (such as a market failure) no longer applies, the sources indicate that governments should consider privatization.

Defining Rationales at the Enterprise Level

Beyond broad national goals, the sources emphasize that governments should define specific rationales for individual SOEs. This process often involves:

• Distinguishing Mandates: Clearly identifying which enterprises are expected to operate on a fully commercial basis versus those with significant public service obligations (PSOs).
• Setting Expectations: Individual rationales help prevent "mission creep" by linking an SOE's activities to its core objectives.
• Recurrent Review: Rationales should not be static; they must be subjected to periodic review to ensure they remain relevant to evolving economic conditions and national priorities. Such reviews help determine if state ownership remains the most appropriate tool for safeguarding the public interest.

Ownership arrangements and models describe the institutional structures and legal frameworks through which a state organizes and exercises its ownership functions over state-owned enterprises (SOEs). In the larger context of strengthening state ownership, these arrangements are critical for clarifying roles, reducing conflicts of interest, and professionalizing the state's role as an informed and active owner.

Stylized Ownership Models

The sources identify five primary models used by governments to organize their SOE portfolios:

• Centralized Ownership: A single decision-making body (such as a dedicated agency or ministry) handles shareholding duties for all SOEs. This body is responsible for financial targets, performance monitoring, and providing essential input for board appointments.
• Co-ordinating Agency: A specialized department operates in an advisory capacity to other shareholding ministries. While it has non-trivial powers—most notably monitoring SOE performance—formal ownership rights remain with other departments.
• Dual Ownership: Two government entities, typically the Ministry of Finance and a sectoral ministry, share ownership rights. Generally, one focuses on financial objectives while the other formulates sectoral policy priorities.
• Twin Track: Two or more government institutions exercise exclusive ownership functions over separate, designated portfolios of SOEs simultaneously.
• Dispersed Ownership Model: Ownership is fragmented, with no single responsible actor. Each individual SOE is managed by its respective line ministry or government institution.

Arrangements as a Tool for Good Practice

Effective ownership arrangements are a cornerstone of professionalized state governance and are used to achieve several "good practice" objectives:

• Functional Separation: Well-designed arrangements facilitate the necessary separation between the state’s policymaking, regulatory, and ownership functions. This separation is vital for maintaining a level playing field for private competitors and limiting the scope for undue political interference.
• Whole-of-Government Coordination: Even with centralized or coordinated models, ownership must remain consistent with broader government strategies. This often involves the Council of Ministers providing top-down guidance and the Ministry of Finance acting as a "fiscal gatekeeper" to monitor risks and maintain discipline.
• Capacity Building: Clearly defined institutional arrangements allow the ownership entity to focus on building specific competencies in financial analysis and corporate governance. For example, in Costa Rica, a dedicated ownership unit acts as a permanent repository of technical knowledge to support the Cabinet's decision-making.
• Accountability and Disclosure: Transparency regarding these arrangements is essential for the public and the legislature to understand who is responsible for SOE oversight. Good practices involve identifying specific bodies responsible for collecting and reporting portfolio-wide information to ensure "ultimate owners"—the citizens—can hold the state accountable.

Strategic Evolution

The sources note that choosing an ownership model is often the first step in a broader reform agenda. Once an arrangement is established, it provides the foundation for subsequent strategic decisions, such as determining which SOEs to corporatize for better commercial orientation, which to privatize, and how to professionalize boards and management. Effective implementation requires these arrangements to be "living" frameworks, capable of being reviewed and updated to reflect evolving economic conditions and national priorities.

The scope and components of a state ownership policy define the "aims and means" of ownership, serving as a comprehensive manual for how the state manages its assets. In the broader context of strengthening state ownership, a well-defined scope ensures that the policy acts as a "one-stop shop" for information, replacing fragmented legal frameworks with a clear, high-level document that fosters transparency and accountability.

The sources categorize the scope of a policy based on its two primary audiences: the general public (including market participants) and SOE management.

Core Components for Public Transparency

To provide market participants, investors, and citizens with a clear understanding of the state’s role, the policy should include several key components:

• Ownership Rationales: The policy must present the general principles and specific economic, strategic, or social goals that justify state control. It should ideally define rationales for individual SOEs and subject them to periodic review.
• The Governance Framework: This describes the state’s oversight mechanisms, institutional coordination, and requirements for regular reporting and disclosure.
• Institutional Arrangements: It must detail how ownership rights are exercised within the state administration, identifying the specific government bodies involved and their mandates.
• Portfolio Overview and Goals: The policy defines the SOE portfolio and distinguishes between enterprises with commercial versus public service orientations. It also sets out strategic goals, such as maintaining specific industries under national ownership or pursuing social and environmental targets.
• Reform and Privatization Plans: Where applicable, the state should outline its reform priorities and criteria for future divestment, often providing a specific list of SOEs slated for potential privatization.

Components for SOE Management and Implementation

For the enterprises themselves, the policy serves as a "compass" for responsible operation and alignment with the owner’s expectations:

• Reporting and Monitoring: The policy establishes clear expectations for the disclosure of financial, operational, and strategic milestones.
• Performance Objectives: It can consolidate financial and non-financial targets, which might otherwise be scattered in separate instruments like "letters of expectations".
• Sustainability and Integrity: A growing practice is integrating expectations for Responsible Business Conduct (RBC), environmental impact, and ethics. This includes requirements for internal controls and periodic risk assessments to prevent corruption.

Good Practices for Defining Scope

In the context of strengthening state ownership, the effectiveness of the policy’s scope depends on several best practices:

• Legal Synthesis: The policy should reference and synthesize all main laws and regulations applicable to SOEs to ensure a unified and coherent framework.
• Accountability and Disclosure: It should be a public document, easily accessible to the legislature and the general public, and ideally subject to legislative approval.
• Adaptability: While the policy defines a stable scope to support long-term planning, it should remain a "living document," reviewed periodically to ensure it reflects current national priorities and economic conditions.

Implementation and monitoring represent the final, critical stage of the state ownership policy cycle, serving as the mechanism through which high-level objectives are translated into responsible and accountable enterprise management. In the broader context of strengthening state ownership, these processes ensure the state acts as an informed, professional owner by providing a continuous feedback loop between defined policy goals and actual enterprise performance.

Core Mechanisms for Effective Implementation

To move beyond a static document, the sources emphasize that governments must establish robust infrastructure for oversight and reporting:

• Performance Monitoring Systems: Governments are increasingly using sophisticated tools to track both financial and non-financial performance. This includes monitoring compliance with corporate governance requirements, legal obligations, and progress toward sustainability goals.
• Annual Aggregate Reporting: This is identified as a primary tool for transparency, providing a "bigger picture" of the entire SOE portfolio. An effective aggregate report complements individual financial data with a narrative that explains qualitative ownership practices, making it accessible to the legislature, media, and the public.
• Clear Allocation of Responsibility: Depending on the ownership model, monitoring duties may be centralized or dispersed. For example, in France and Lithuania, a centralized unit manages assessments, whereas in Germany, individual line ministries monitor the legal compliance of SOEs under their purview.

Periodic Review and Evaluation

Maintaining the policy as a "living document" requires regular assessment to ensure it remains relevant to changing economic conditions.

• Review Cycles: Some countries tie policy reviews to electoral cycles (e.g., Finland reviews its policy every four years following a new government) or budgetary processes (e.g., the Netherlands).
• Balancing Stability and Change: While reviews are necessary, the sources warn against modifying the overall ownership rationales too frequently, as this can undermine the long-term planning and stability of the SOEs.
• External Validation: Good practice increasingly involves using external auditors or independent evaluations to assess whether the policy aligns with international standards, such as the OECD Guidelines.

Country-Specific Implementation Practices

Several nations illustrate how monitoring can be professionalized through structured frameworks:

• Korea: Implements a four-pillar reporting framework centered on the ALIO disclosure portal. This system includes a clear legal mandate, standardized disclosure formats, continuous monitoring by the Ministry of Economy and Finance, and tangible consequences (such as budgetary adjustments or personnel sanctions) for underperformance or faulty reporting.
• Sweden: To ensure direct commitment, the state ownership policy is approved at the general shareholder meeting of each SOE. This procedure ensures that boards and management are formally aware of and committed to following the state’s expectations.
• Lithuania: Uses "letters of expectation" that are reviewed by a centralized Governance Co-ordination Centre to serve as benchmarks for assessing SOE performance in annual aggregate reports.

Larger Strategic Context

In the context of good practices, implementation and monitoring are not merely administrative tasks; they are essential for mitigating risks and building trust. By establishing transparent objectives and holding SOEs accountable through regular disclosure, governments can reduce the risk of political influence and corruption, while demonstrating to citizens and market participants that state assets are being managed to deliver long-term public value.

Global Debt Problem - OECD

 According to the Global Debt Report 2026, the sovereign borrowing outlook is characterized by record-high funding needs, rising interest costs, and significant structural shifts in the investor base.

Borrowing Requirements and Debt Levels

• Record Issuance: Gross borrowing by OECD central governments reached an all-time high of USD 17 trillion in 2025 and is projected to climb further to USD 18 trillion in 2026.
• Refinancing Dominance: A critical feature of this outlook is that nearly 80% of gross borrowing is now dedicated to refinancing existing debt rather than new spending. Refinancing requirements hit USD 13.5 trillion in 2025 and are expected to reach USD 14 trillion in 2026.
• Rising Debt Stock: Outstanding sovereign bond debt in the OECD area reached USD 61 trillion in 2025. While the debt-to-GDP ratio remained stable at 83% in 2025, it is projected to rise to 85% in 2026, the highest level since 2021.

Issuance Strategies and Refinancing Risk

• Shift to Shorter Maturities: To mitigate the impact of persistently high long-term interest rates, many governments have rebalanced their issuance towards shorter maturities. The share of issuance with a maturity over 10 years reached its lowest point since 2009 in 2025.
• Reliance on Treasury Bills: T-bills have become a vital shock absorber, now accounting for 15% of the total debt stock and roughly 47% of gross borrowing.
• Refinancing Pressure: While shortening maturities lowers current interest expenditures, it significantly increases refinancing risks. This pressure is particularly acute for low-income countries, where more than half of outstanding bonds are set to mature within the next three years.

Borrowing Costs and Fiscal Sustainability

• Elevated Yields: Long-term government bond yields continued to rise in 2025, with 30-year yields reaching a median of 4.1%. Average estimated 10-year term premiums reached 0.84%, the highest level in over a decade.
• Fading Inflation Support: In previous years, high inflation helped reduce debt-to-GDP ratios. However, as inflation falls and interest payments rise, this effect is reversing; in 2026, interest payments are projected to increase the OECD aggregate debt ratio by 2.5 percentage points, outweighing the 2.4 percentage point reduction from inflation.
• Interest Expenditures: Aggregate OECD interest-to-GDP ratios reached 3.3% in 2025, nearing the highest levels of the past ten years.

The Changing Investor Base

• Withdrawal of Central Banks: As central banks continue to shrink their balance sheets through quantitative tightening, the market has become increasingly dependent on more price-sensitive and leveraged investors, such as hedge funds and households.
• Hedge Fund Role: Hedge funds have emerged as marginal buyers and critical providers of liquidity, accounting for nearly a third of trading volumes in core markets. While they provide much-needed liquidity, their presence may increase market sensitivity to shocks.
• Institutional Shift: A structural migration from Defined Benefit (DB) to Defined Contribution (DC) pension schemes is reducing the demand for long-duration assets, contributing to steeper yield curves.

Market Resilience and External Risks

• Surface-Level Stability: Despite record borrowing and high deficits, markets functioned effectively in 2025, with improved liquidity and moderated volatility.
• Geopolitical and Policy Uncertainty: This stability masks deeper risks, including heightened geopolitical tensions and trade disputes. Nearly all surveyed sovereign issuers expect geopolitical risk to continue affecting market operations and liquidity in 2026.
• Vulnerability to Shocks: The combination of record issuance, increased reliance on leveraged participants, and uncertain fiscal trajectories makes markets susceptible to sudden bouts of volatility.

In the context of the Global Debt Report 2026, corporate debt markets are undergoing a fundamental transformation characterized by record-high borrowing, the massive capital demands of the artificial intelligence (AI) expansion, and a shift toward a more electronic and transactional market structure.

Market Activity and Outstanding Debt

• Record Issuance: Global corporate debt issuance reached a historic high of approximately USD 13.7 trillion in 2025, split between USD 6.8 trillion in corporate bonds and USD 7 trillion in syndicated loans.
• Total Outstanding Debt: By the end of 2025, outstanding corporate debt stood at USD 59.5 trillion. While issuance is at a record, real outstanding amounts remain below the 2020 peak.
• Rising Interest Costs: While corporate interest expenditures have risen more slowly than sovereign ones due to fixed-rate structures, the gap is narrowing. Half of outstanding investment-grade bonds now carry an interest rate above 4%, the first time this has occurred since 2016.
• Refinancing Pressure: A "maturity wall" is approaching; approximately 24% of investment-grade and 31% of non-investment grade debt is set to mature between 2026 and 2028, much of which must be refinanced at significantly higher current market rates.

The AI Expansion as a Market Driver

The AI race is shifting the technology sector from an "asset-light" model to one of extreme capital intensity.

• The Hyperscalers: Nine major firms (including Microsoft, Alphabet, and Meta) issued USD 122 billion in bonds in 2025—nearly half of all global technology firm issuance.
• Massive Capital Needs: Projections for these nine firms suggest USD 4.1 trillion in capital expenditure between 2026 and 2030. If half of this is bond-financed, they would account for 15% of historical annual global issuance by non-financial companies.
• Private Credit and Structural Complexity: AI financing is blurring the lines between markets. For example, Meta entered a USD 29 billion joint venture with Blue Owl Capital to fund data centers, using a mix of equity and privately placed bonds.

The Puzzle of Low Credit Spreads

Despite high geopolitical and macroeconomic uncertainty, corporate credit spreads remain near historical lows. The sources attribute this to three main factors:

1. Strong Fundamentals: Corporate cash levels are high, earnings prospects are strong, and default rates are projected to remain below historical averages.
2. Relative Sovereign Risk: As sovereign debt levels and yields have spiked, the "benchmark" against which corporate risk is measured has risen, causing spreads to tighten relatively; some major companies now even trade at negative spreads to their government equivalents.
3. Liquidity Improvements: A significant portion of spread reduction is due to a falling liquidity premium. Advancements in electronic trading, the rise of portfolio trading, and the presence of ETFs have made corporate bonds easier and cheaper to trade.

Structural Shifts and Convergence with Equity

The report highlights that corporate debt markets are increasingly resembling equity markets in several ways:

• Changing Investor Base: Regulations have forced banks to step back from "warehousing" bonds. Their role has been filled by Exchange Traded Funds (ETFs), investment funds, and Principal Trading Firms (PTFs) that use high-frequency, automated strategies.
• Increased Concentration: Like equity markets, corporate bond markets are becoming concentrated around a small number of massive technology firms.
• Price Co-movement: There is an increasing correlation between credit spreads and equity prices (hedge ratios), particularly during stress episodes, which may exacerbate market volatility.
• Collateral Uncertainty: The underlying assets for much AI debt—data centers—have uncertain long-term value due to rapid technological obsolescence, creating a risk profile that is more equity-like than traditional real-estate-backed debt.

The Global Debt Report 2026 highlights a fundamental transformation in the investor base for government and corporate bonds, characterized by a transition from price-insensitive official sectors to a more price-sensitive and leveraged group of private participants. This evolution is driven by central banks' withdrawal from asset purchase programs, stricter banking regulations, and structural shifts in pension systems.

The Retreat of Central Banks and Quantitative Tightening

Central banks, which were the dominant domestic holders of government debt during years of quantitative easing (QE), have significantly reduced their footprint.

• Declining Shares: After peaking at 30% of domestic government bond holdings in 2021, central bank shares fell to 20% in 2025 as they continued shrinking their balance sheets through quantitative tightening (QT).
• Normalization: Despite this retreat, central banks remain the largest domestic holders in many jurisdictions, with absolute holdings still roughly 66% higher than in 2015.
• Price Insensitivity to Sensitivity: As central banks—who buy for policy objectives rather than yield—withdraw, markets must find new buyers who are more responsive to price and interest rate levels.

The Rising Role of Hedge Funds and Leveraged Investors

A defining feature of the current landscape is the increased prominence of hedge funds, which have filled the gap left by traditional bank dealers.

• Liquidity Provision: Hedge funds now account for nearly a third of trading volumes in US Treasuries and the majority of secondary market volumes in some European markets.
• Marginal Buyers: More than half of surveyed sovereign debt management offices (DMOs) identify hedge funds as marginal buyers of their bonds.
• Market Stability Risks: While hedge funds provide vital liquidity in normal times, their reliance on high leverage and their propensity to liquidate positions during stress episodes (such as the "Liberation Day" yield spike in April 2025) can amplify market volatility.

Structural Institutional Shifts: From DB to DC Pensions

Pension funds remain critical fixed-income investors, but their behavior is changing due to the global migration from Defined Benefit (DB) to Defined Contribution (DC) schemes.

• Reduced Duration Appetite: DB schemes require long-duration bonds to match fixed future liabilities; in contrast, DC schemes prioritize higher returns and flexibility, leading to a structural decline in demand for ultra-long-term bonds.
• Shift to Corporates: The move toward DC models is also encouraging an allocation shift away from low-yielding government bonds toward higher-yielding corporate debt.

Foreign Investors and Geopolitical Fragmentation

Foreign investors remain the largest overall category of bondholders, but their demand is increasingly sensitive to global tensions.

• Major Stakeholders: Foreign investors hold roughly 28% of government bonds and 31% of corporate bonds globally.
• Geopolitical Risk: Nearly all surveyed sovereign issuers expect geopolitical risk to affect market operations in 2026. Tensions can lead to "flight home" effects, where investors reallocate funds to domestic markets or safe-haven assets like US Treasuries.
• Fragmented Demand: There is evidence that investment funds allocate smaller shares to countries that are geopolitically distant, raising concerns about the future absorption of record debt supply.

The Resurgence of Retail Investors

For the first time in over a decade, households and retail investors have become significant buyers of government debt.

• Yield Attraction: Higher interest rates since 2022 have made government bonds a competitive alternative to bank deposits for retail investors.
• Strategic Targeting: Many governments have introduced new retail-specific products, such as Italy’s BTP Valore and Lithuania’s defense bonds, to diversify their investor bases.

Implications for Issuers

This more fragmented and price-sensitive investor base has forced sovereign and corporate issuers to adapt their strategies:

• Shorter Maturities: To align with current demand, many borrowers have skewed issuance toward shorter tenors, which lowers current interest costs but increases refinancing risks.
• Flexibility Needed: DMOs are increasingly using tools like syndications and ad-hoc taps to manage supply in a market where traditional "buy-and-hold" demand has weakened.
• Vulnerability to Shocks: The combination of record issuance and a leveraged investor base means that even minor price movements can trigger self-reinforcing selloffs, challenging the current surface-level calm of global debt markets.

Newspaper Summary 090426

 

Benchmarks skyrocket 3.8% as markets cheer Iran-US ceasefire

ON A HIGH. Tumbling crude, sharp dip in volatility and global cues trigger broad-based rally

Anupama Ghosh, Mumbai

The equity benchmarks soared over 3.8 per cent on Wednesday after a last-minute ceasefire between the US and Iran triggered a global rally and sent crude oil prices tumbling. Major equities across the globe surged 2-7 per cent, with Korea’s Kospi leading the gainers pack.

The Nifty 50 closed at 23,997.35, up 873.70 points or 3.78 per cent, after opening with a gap-up of 731 points. During the day, it hit a high of 24,025.15. The Sensex settled at 77,562.90, adding 2,946 points or 3.95 per cent. The Nifty Midcap and Smallcap indices advanced over 4 per cent each.

MACRO BOOST

The sharp correction in crude oil prices delivered a broader macro dividend for India “... as it eases inflationary pressures, narrows the current account deficit, supports the rupee and strengthens fiscal dynamics,” said Ajay Menon, MD and CEO, Wealth Management, Motilal Oswal Financial Services. He added that India, which had witnessed record FII outflows in March, stood to benefit meaningfully from the return of risk-on flows into emerging markets.

The two-week ceasefire, announced just hours before the US deadline, eased fears over energy supply disruptions and the closure of the Strait of Hormuz. Brent crude plunged over 14 per cent, falling below $95 per barrel, with domestic crude futures dropping nearly 17 per cent.

The Reserve Bank of India added to the positive tone, with the Monetary Policy Committee unanimously holding the repo rate at 5.25 per cent with a neutral stance.

Sectorally, the rally was broad-based. Auto and Realty were the top performers, each gaining over 6.5 per cent, followed by banking and financial services, which advanced 5-6 per cent. The CPSE index was the lone laggard, ending marginally in the red.

The volatility gauge India VIX dropped over 20 per cent to 19.69, slipping below its 20-day EMA for the first time since February 18, signalling a meaningful easing of market uncertainty.

RUPEE RECOVERS

The rupee staged a sharp recovery, appreciating towards the 92.5/dollar zone, supported by declining crude prices and improving global cues. Gold rose over 2.4 per cent while silver surged more than 5.5 per cent.

Menon noted that with some macro stability, market focus is shifting to Q4 earnings. JM Financial estimates Nifty 50 PAT growth at 4.2 per cent year-on-year for the quarter, led by IT Services, Auto, Metals, and Telecom.

India’s solar energy capacity crosses 150 GW

M Ramesh, Chennai

India’s installed solar power capacity has crossed the 150 GW mark, numbers put out by the Ministry of New and Renewable Energy show. This happened as installations in March reached a record 6.65 GW. In the full year 2025-26, India’s solar installations were 44.61 GW, taking the cumulative capacity to 150.26 GW.

There has been another notable record — in wind power. India installed a record 6.05 GW of wind power capacity, the highest ever, surpassing the 2016-17 record of 5.2 GW. Yet another record achieved in 2025-26 is the total renewable energy capacity installations crossing the 50 GW mark. Total installations during the year were 50.9 GW. With this, India’s total renewable energy installed capacity, excluding large hydro, stands at 223.27 GW. Including large hydro (51.41 GW), the number is 283.46 GW.

Also noteworthy is the point that within solar, rooftop installations crossed the 25-GW mark; they now stand at 25.73 GW.

INSTALLED CAPACITY

Minister for New and Renewable Energy and Consumer Affairs, Food and Public Distribution Pralhad Joshi said on Wednesday that India ranks third globally in renewable energy installed capacity.

“Distributed renewable energy (DRE) from solar has emerged as a significant component of this growth, contributing 16.3 GW (36 per cent) of the 44.61 GW installed during 2025-26,” said a MNRE press release. This includes 7.6 GW under PM KUSUM and 8.7 GW from rooftop solar. Non-fossil capacity addition in 2025-26 is 55.29 GW and this is the highest increase in any year. Previously, the highest increase was 29.5 GW during 2024-25, the release said.

India welcomes West Asia pause

Amiti Sen, Rishi Ranjan Kala, New Delhi

India officially welcomed the announcement of a ceasefire in West Asia, expressing hope that the pause in hostilities will pave the way for “unimpeded” freedom of navigation and global flow of commerce through the Strait of Hormuz. The development is crucial for India, which depends heavily on the route for its crude oil imports and energy security, as the blockade of the strait caused major disruption to its LPG, LNG and crude oil supplies.

“We welcome the ceasefire reached and hope that it will lead to a lasting peace in West Asia. As we have continuously advocated earlier, de-escalation, dialogue and diplomacy are essential to bring an early end to the ongoing conflict,” the Ministry of External Affairs (MEA) said in a statement on Wednesday. The conflict, which has been going on for over a month, has already caused immense suffering to people and disrupted global energy supply and trade networks, the statement noted.

17 VESSELS

“Around 17 India-bound vessels, both Indian and foreign flagged, are waiting on the west of the Strait of Hormuz as of Tuesday,” a senior government official said. While four tankers are loaded with LPG, three are carrying LNG and 10 have crude oil. So far, eight Indian vessels carrying LPG and another foreign-flagged ship carrying crude have crossed the strait to head to India since the war broke out, the official said.

“We expect unimpeded freedom of navigation and global flow of commerce would prevail through the Strait of Hormuz,” the MEA added. While tensions in the region had been building for a long time—including the “twelve-day war” in June 2025 and widespread internal protests in Iran in January 2026—this specific all-out war was triggered by the February-28 strikes on Iran by the US and Israel.

The Ministry noted India has always been in favour of peace. “We welcome all steps that lead to peace and stability,” even drawing a parallel by expressing hope that this breakthrough might encourage similar peace efforts in the Ukraine conflict, it said.

The impact was felt immediately in global markets, with international crude oil prices witnessing a dramatic collapse. Brent crude plunged by about 14 per cent, trading near $94 per barrel, a sharp correction from the high of $119 seen during the peak of the hostilities. This offers significant relief to India, where prices of aviation fuel and commercial LPG prices have been increased due to disrupted supplies during the conflict.

Meanwhile, Defence Minister Rajnath Singh chaired the third meeting of the Informal Empowered Group of Ministers (IGoM) set up to monitor the evolving situation in West Asia. It reviewed measures taken to ensure the continued availability of essential commodities and safeguard Indian citizens.

Cease and desist

US-Iran ceasefire, a ray of hope for the world

After 40 days of utter mayhem, the US and Iran have agreed to a two-week ceasefire — on a war that the US should not have begun in the first place. Markets have responded with a huge sense of relief, with Brent crude diving below $100 a barrel, and Sensex/Nifty posting near 4 per cent gains. The rupee gained 0.5 per cent over Tuesday’s close on Wednesday, ending at 92.58 to the dollar. Coming just hours after US President Donald Trump’s threats to blow up Iran, the ceasefire comes as a welcome anti-climax. Now, both sides are expected to conduct talks on the basis of an ambitious set of proposals. While it is anyone’s guess whether this truce endures, major economies and businesses have been pushed to the wall by dizzying levels of disruption and uncertainty — and that includes the US. The Trump administration is facing an economic, political and possibly global blowback. It is being increasingly perceived that China, the world’s second largest economy and the main buyer of Iranian oil, is behind the mediation efforts, even as talks are being held in Pakistan.

So far, it is apparent that Iran has had the upper hand in the conflict, despite its terrain and towns being battered. One fact alone bears this out: Iran blocked the Strait of Hormuz, open to free international access before the war, and effectively shut off 20 per cent of global oil supplies. It has eased access in recent days on its terms, but not before driving up oil prices by about $50 a barrel over a month. Now, a somewhat defensive Trump says that the ceasefire is predicated on Iran ensuring a “complete, immediate and safe opening” of the Strait of Hormuz — which, absurdly enough, was the state of play before US and Israel wrecked it. Iran has said that the straits, for now, will be opened under military supervision, but that it cannot be restored to the pre-war position. These are negotiating postures — just as Iran has demanded war reparations, lifting of economic sanctions, an end to attacks, the release of frozen assets and a UN security resolution making a deal binding, as part of its 10 demands. The US has pushed for the dismantling of Iran’s nuclear programme as part of its 15-point agenda.

The power play is intriguingly poised, with Iran possibly having an edge. If Trump considers Iran’s proposals “workable”, it perhaps suggests that he is looking for an “off ramp” to end a war that has not achieved any of the stated objectives. This included regime change in Iran, destruction of its military, dismantling of its nuclear programme and controlling the Strait. Ironically, what was once a freely navigable strait could well turn into a tolled one if Iran has its way and that’s a definite loss of face for the US. Both, US and Israel do not seem to have reckoned with Iran’s capacity to make a success of ‘asymmetric warfare’. Going forward, the most desirable outcome of the mediated talks would be to ensure that the Strait is safe and open. Meanwhile, we can expect a geopolitical reset, to US’ detriment. India’s position vis-a-vis the US and China looks complicated now, with Pakistan’s involvement — but the economy will hopefully ease up.

The article containing the section titled “PAUSING THE LAUNCH” is an opinion piece by GBS Bindra titled “An AI model that’s too risky”. Below is the full reproduction of the article as found in the sources:

An AI model that’s too risky

Release of Claude Mythos Preview rightly put on hold

By GBS Bindra

Something unusual happened in the artificial intelligence industry this week. Anthropic, one of the leading AI labs, built a model so capable that it chose not to release it. The model, called Claude Mythos Preview, is not just another incremental advance. It can autonomously discover and exploit serious cybersecurity vulnerabilities—tasks that have historically required elite human researchers working for weeks. In one instance, it reportedly identified and exploited a long-standing remote code execution flaw in FreeBSD that allows an attacker to gain complete control over a server from anywhere on the internet, starting from an unauthenticated position. No human was involved in either the discovery or exploitation after the initial prompt.

That is not just a technical milestone. It is a glimpse of a near future in which AI systems could dramatically accelerate both cyber defence and cyber offence.

PAUSING THE LAUNCH

To its credit, Anthropic did something rare in Silicon Valley: it paused. Instead of launching the model, it created Project Glasswing, a coalition that includes Amazon Web Services, Apple, Broadcom, Cisco, CrowdStrike, Google, JPMorganChase, Microsoft and NVIDIA. The goal is to use the model defensively—to identify and patch vulnerabilities in critical systems before similar capabilities become widely available. It is hard to overstate how unusual this is. A company sat on what could be an enormously valuable commercial product because it judged the risks to global infrastructure too high. In an industry defined by rapid releases and competitive pressure, that decision deserves recognition.

But it should also make us uneasy. Because for all its promise, Project Glasswing exposes a deeper problem: the future of global cybersecurity may be shaped not by public institutions, but by the internal decisions of a handful of private companies. Anthropic decided Claude Mythos Preview was too dangerous to release. It chose who would get access to it. It defined what counts as “defensive use”. And it will ultimately decide when systems with similar capabilities are safe enough for broader deployment.

That may be the right call, but it is still a private call. We have seen this pattern before in other high-stakes industries and rejected it. Banks do not determine their own capital requirements without oversight. Drug companies cannot unilaterally declare their products safe. Nuclear operators are not left to design their own inspection regimes. In each case, society concluded that even well-intentioned companies should not be the sole gatekeepers of technologies with systemic risk. Artificial intelligence is now at that point

World Bank cuts India’s FY27 growth rate by 30 bps to 6.6%

Shishir Sinha, New Delhi

The World Bank on Wednesday revised India’s growth forecast up by 30 basis points (bps) to 6.6 per cent for fiscal year 2026-27.

“Growth is projected to decelerate to 6.6 per cent in FY27, reflecting headwinds from the West Asia conflict,” World Bank said in the latest South Asia Economic Update, ‘Working with Industrial Policy’. “Other forecasters have revised down their growth projections to a range between 5.9 and 6.7 per cent,” it said. The World Bank’s forecast for the current fiscal is lower than RBI’s 6.9 per cent.

The World Bank pegged the growth at 7.6 per cent for FY26, higher than 7.1 per cent of FY25. This is mainly on account of strong domestic demand and export resilience. “Private consumption growth was particularly robust, supported by low inflation and rationalisation of the Goods and Services Tax (GST),” it said.

ENERGY PRICES

Elevated global energy prices are expected to put upward pressure on prices and constrain households’ disposable income.

“Government consumption growth is expected to soften to offset higher subsidy outlays for cooking fuel and fertilizers,” the Bank said, while adding that investment growth is likely to moderate amid elevated uncertainty and rising input costs. “Improved access to the US and the European Union for India’s exports will be undermined by slower growth in major trading partners,” it added.

Updated GDP data and calculation methods revealed that the economy was slightly smaller than previously thought, but recent growth has been faster.

STRONG CONSUMPTION

Domestic demand has been strong, with robust retail sales and consumer confidence reaching its highest post-pandemic level in November 2025.

According to the report, recent reforms to simplify and reduce taxes have also supported private consumption. Domestic strength outweighed goods export weakness. Goods exports grew by only 0.1 per cent in 2025, due to the US’ brief imposition of 50 per cent tariffs.

Services exports grew by about 16 per cent from December to February. Foreign investors, alongside strong remittances, helped contain the current account deficit. Falling food prices kept inflation below the Central bank’s 2-6 per cent target from September to December, before it rose to 3.2 per cent in February.

The report said that South Asia growth is expected to slow to 6.3 per cent in 2026 — from 7 per cent in 2025 — due to disruptions in global energy markets. “Despite the near-term slowdown, South Asia continues to grow faster than other emerging-market and developing economies,” the report said. The growth outlook is driven primarily by India’s performance, it added.

Luxembourg Health System Performance Assessment Framework

 In the Luxembourg Health System Performance Assessment (HSPA) Framework, Outcomes represent one of the four main building blocks used to evaluate the health system's performance. This block is specifically emphasized within the framework to align with the primary HSPA purpose of improving population health.

The Outcomes block is divided into two primary domains: Health Status and Person-centeredness, which together are measured by 18 indicators.

1. Health Status Domain

This domain describes the state of health of the population using both subjective perceptions and objective clinical measures. It is further divided into two subdomains:

• Population Outcomes: This subdomain captures fundamental measures of longevity and morbidity, such as life expectancy at birth, healthy life years at age 65, and standardized mortality rates. It also includes self-perceived health and disease-specific measures like cancer incidence.
• Mental Health: Luxembourg has given mental health dedicated visibility in its framework to provide special emphasis on this topic. Indicators in this subdomain include the proportion of adolescents reporting multiple health complaints, self-reported depressive symptoms in adults, and emotional distress (feeling anxious or irritable) among primary care patients with chronic conditions.

2. Person-centeredness Domain

This domain evaluates how the health system treats individuals as equal partners in their care and addresses their specific preferences and needs. It consists of three subdomains:

• Patient-centered care: Measured by a composite indicator of eight dimensions (e.g., whether patients feel involved in decisions and are treated as a "whole person") and specific indicators regarding whether doctors provide easy-to-understand explanations.
• Health Literacy: This relates to a person's knowledge and skills to understand and use health information. It is measured by an indicator for the self-reported understanding of health issues and a placeholder for mental health literacy.
• Patient Experience: This subdomain covers aspects of the care journey patients consider most important, such as satisfaction with hospital stays, satisfaction with long-term care, and whether patients have experienced adverse events.

Analytical Context within the HSPA

The framework is designed so that the other three blocks—Inputs (governance, infrastructure, workforce, finances), Processes (access to care, value-based care, integrated care), and Cross-cutting themes (sustainability, equity, determinants of health)—all feed into or influence these Outcomes.

For example, in the mental health use case, the sources explain that outcome indicators (like depressive symptoms) must be interpreted alongside input indicators (like the number of psychiatric beds) and process indicators (like wait times or unmet needs due to cost) to provide a coherent understanding of system performance. This structured approach allows policymakers to move beyond isolated data points and understand the long-term consequences of health conditions and the effectiveness of care delivery.

In the Luxembourg Health System Performance Assessment (HSPA) Framework, Processes constitute one of the four main building blocks used to evaluate the health system, alongside Outcomes, Inputs, and Cross-cutting themes. This block focuses specifically on healthcare services and their provision, serving as the bridge that explains how system Inputs (such as workforce and infrastructure) are transformed into Health Outcomes.

The Processes block is comprised of 33 indicators distributed across three primary domains and nine subdomains:

1. Access to Care Domain

This domain monitors whether individuals can obtain the care they need without facing insurmountable barriers.

• Financial protection: Measures dimensions of health insurance coverage and the level of financial hardship patients face when accessing care, such as out-of-pocket spending.
• Operational access: Monitors the timeliness and geographical accessibility of care, medicines, and medical equipment, both within Luxembourg and for care sought abroad.

2. Value-based Care Domain

This domain evaluates the quality and efficiency of the care delivered.

• Patient safety: Tracks unnecessary harm associated with healthcare provision, such as ICU-acquired infection rates or hospital-acquired pressure ulcers.
• Guidelines compliance: Assesses the adoption of evidence-based approaches in the delivery of services.
• Quality of care: Focuses on clinical effectiveness and outcomes of health interventions, including the quality of primary, inpatient, and long-term care.
• Cost efficiency: Describes the extent to which the best possible value is achieved through the use of available resources, measured by indicators like the share of generic drugs or inpatient average length of stay.

3. Integrated Care Domain

Reflecting a high priority for Luxembourgish stakeholders, this domain assesses how well different parts of the system work together.

• Prevention: Evaluates the system's ability to prevent disease through primary prevention (e.g., vaccination rates) or early detection through secondary prevention (e.g., cancer screening).
• Coordination of care: Reviews the ongoing coordination between multiple providers for chronically ill patients, often measured by whether patients have a formal care plan.
• Continuity of care: Measures the patient's journey through the system and the continuity between individual providers for specific diagnoses.

Analytical Role in the HSPA

The Processes block follows the logic of the Donabedian model, which links the structure of a health system to its processes and, ultimately, its outcomes. Within the HSPA framework, process indicators are essential for interpreting performance; for example, in mental health, process indicators like unmet needs due to financial reasons or average length of stay in psychiatric care provide the context necessary to understand why certain population health outcomes are being achieved. This allows policymakers to identify specific operational areas—such as waiting times or care coordination—that require intervention to improve overall system results.

In the Luxembourg Health System Performance Assessment (HSPA) Framework, Inputs constitute one of the four essential building blocks, serving as the structural foundation of the health system. This block focuses on the resources—governance, infrastructure, workforce, and finances—that enable the delivery of healthcare services. Within the framework’s overall logic, Inputs are viewed as the "structure" (following the Donabedian model) that feeds into Processes, which in turn produce Outcomes.

The Inputs block is the largest in terms of measurement, populated by 35 indicators distributed across four primary domains and eight subdomains.

1. Governance Domain

This domain evaluates the system's capacity for oversight and its relationship with the public.

• Leadership: Refers to the capacity to make, monitor, and enforce rules governing health services. Indicators include the International Health Regulations (IHR) capacity score and the formal participatory role of patients in health policy.
• Transparency & Accountability: Describes the level of trustworthiness and visibility of system actors. It is measured through public satisfaction and trust in the healthcare system.

2. Infrastructure Domain

This domain assesses the availability and integration of physical, pharmaceutical, and technological resources.

• Physical Resources: Monitors essential facilities, such as hospital and intensive care beds, as well as the availability of medical technology like MRI and CT scanners.
• Pharmaceuticals: Focuses on the availability and guidelines-based use of essential and innovative medicines.
• Digital Health: Evaluates the integration of digital innovations, including the use of electronic health records, e-prescriptions, and electronic vaccination records.
• Research & Development (R&D): Measures Luxembourg’s commitment to innovation through government budget allocations and participation in clinical trials.

3. Workforce Domain

Monitoring human capital was identified as a high priority for Luxembourgish stakeholders due to the system's reliance on professionals trained or living abroad.

• Training: Assesses initial education and continuous professional development, including the number of medical and nursing graduates produced domestically.
• Workforce Capacity: Tracks the density and availability of practicing physicians, nurses, and long-term care workers.

4. Finances Domain

This domain was specifically introduced to capture underrepresented topics like the long-term stability of the health insurance system.

• Fiscal Sustainability: Evaluates revenue stability and the adequacy of resources to cover future needs, using indicators like public spending forecasts and the reserve-to-expenditure ratios for sickness and long-term care insurance.
• Financial Allocation: Tracks how funds are distributed across providers (e.g., hospitals vs. outpatient) and functions (e.g., curative vs. preventive care).

Analytical Role in the HSPA

Inputs are viewed as enabling conditions. In the framework's "use cases," input indicators are never analyzed in isolation but are used to explain performance elsewhere. For example, a decline in psychiatric hospital beds (Input) is not automatically interpreted as positive or negative; it must be assessed alongside wait times (Process) and depressive symptoms (Outcome) to determine if the system is successfully shifting toward community care or simply facing capacity shortages.

In the Luxembourg Health System Performance Assessment (HSPA) Framework, Cross-cutting topics represent one of the four essential building blocks used to evaluate health system performance. This block is designed to surround and influence the other three blocks—Inputs, Processes, and Outcomes—reflecting themes that run across all health service domains.

The block consists of 19 indicators distributed across three domains: Sustainability, Equity, and Determinants of health.

1. Sustainability Domain

This domain evaluates the health system's ability to remain stable and functional in the face of environmental and societal challenges. It is divided into two subdomains:

• Resilience (4 indicators): Assesses the capacity of the system to anticipate and adapt to changes. Indicators include expenditures on disaster and emergency response, the Quality of Work index for health and social care workers, antibiotic resistance rates, and antibiotic concentrations measured in surface waters.
• Climate Change (2 indicators): Monitors the system's environmental footprint and its response to climate-related threats. Indicators include greenhouse gas emissions related to healthcare demand and estimated annual heat-related deaths in older adults.

2. Equity Domain

The Equity domain measures disparities in health and access to care, reflecting a high priority for Luxembourgish stakeholders.

• Demographic and Geographic (2 indicators): Focuses on how age, sex, and location affect health risks or service access. It includes self-reported unmet needs for medical exams (disaggregated by sex, age, and urbanisation) and reported victims of domestic violence.
• Socio-economic (3 indicators): Examines the influence of education and income on health. Key measures include self-perceived health by income/education and the rate of emergency room use by recipients of specific social benefits, which serves as a proxy for socio-economic vulnerability.

3. Determinants of Health Domain

This domain focuses on modifiable and environmental factors that influence population health outcomes.

• Behavioural Risk Factors (5 indicators): Captures habits such as smoking, alcohol consumption, physical activity, fruit/vegetable intake, and self-reported overweight/obesity in adolescents and adults.
• Non-behavioural Determinants (3 indicators): Focusses on conditions in the living and natural environment. Indicators include the death rate attributed to air pollution and the health impact (years of life lost) due to exposure to fine particulate matter.

Analytical Context within the HSPA

Within the framework's logic, these topics are viewed as "transversal" themes that provide the necessary context for interpreting other data. For instance, Equity is not just an isolated domain; many indicators in the Outcomes and Processes blocks are disaggregated by sex, age, and income to provide an intersectional view of performance. Similarly, the Sustainability and Determinants of health domains allow policymakers to account for external factors—like environmental impacts or life habits—that ultimately drive the system's long-term health outcomes.

The implementation and governance of the Luxembourg Health System Performance Assessment (HSPA) Framework are designed to transition the framework from a conceptual project into a sustainable operational tool for evidence-based policymaking. This process is legally anchored in the mandate of the National Health Observatory (ObSanté), which is required by law to produce a national report on population health and health system performance every three years.

Proposed Governance Structure

The framework establishes a multi-tiered governance model to ensure strategic alignment and technical rigor through four primary bodies:

• Advisory Committee (Comité consultatif): Composed of senior representatives from key health and finance institutions (e.g., M3S, IGSS, CNS, DiSa), this body provides high-level guidance, ensures long-term sustainability, and aligns the HSPA with national health priorities.
• Co-ordination Team (Comité de co-ordination): Formed by ObSanté, IGSS, and DiSa, this team manages the operational workplan, orchestrates task allocation, and oversees the production process.
• HSPA Custodian: This role is held by ObSanté, which manages the day-to-day execution through its staff (Operative arm) and maintains strategic oversight via its Council of Observers (Strategic arm).
• Stakeholder Forum (Forum des parties prenantes): Based on the former Principal Working Group, this body provides expert feedback on methodologies and serves as a vital channel for disseminating results across the health sector.

Data Governance and Accountability

Effective governance relies on clearly defined roles for data management. Indicators in the framework are managed through a system of custodianship:

• Indicator Custodians: ObSanté is the primary custodian for approximately 72% of the framework's indicators, responsible for their analysis.
• Data Custodians: These are the "data owners" (such as DiSa, IGSS, and STATEC) who manage the primary datasets used to generate the indicators.
• Indicator Sheets: To ensure transparency, each indicator will have a "passport" or technical sheet documenting its definition, calculation methodology, and limitations to ensure consistency across reporting cycles.

Implementation Cycles and Policy Alignment

The reporting cycle is a strategic governance choice intended to maximize the impact of health intelligence on decision-making.

• Triennial Cycle: In accordance with legal obligations, the first formal HSPA report is planned for 2028.
• Strategic Timing: Governance discussions emphasize aligning report publications with national election cycles (e.g., the 2028 report could inform the next government's reform agenda) and budgetary planning.
• Inter-cycle Stability: Between reports, the framework is intended to remain stable to allow for the dissemination of findings and the development of placeholder indicators that require new data collection or methodology.

Sustainability and Dissemination

A key goal of the governance structure is to move beyond "siloed" analysis toward an integrated understanding of the system. To support this, ObSanté plans to pilot a dedicated HSPA platform featuring interactive dashboards. This platform will provide stakeholders and the public with dynamic updates between formal reports, maintaining engagement and transparency across the health system.