Argentina's Stalled Fight Against Inflation under Milei

 Milei’s inflation fight stalls in Argentina The final stretch of reining in price increases is likely to be difficult, warn economists By Daniel Politi in Buenos Aires

Javier Milei’s push to bring down Argentina’s chronic inflation is stalling, with the monthly rate hitting 3.4 per cent in March — its highest level in a year — as economists warn that tackling the final stretch could be far harder than halting the crisis at its peak.

Inflation has fallen sharply from the double-digit monthly rates Milei inherited when he became president in 2023. However, the monthly rate bottomed out at 1.5 per cent in May and hit 2.9 per cent in both January and February.

“The number is bad. We don’t like the number because inflation is repugnant to us,” Milei stated after the data was published. “However, hard factors allow us to explain what has happened and especially to expect that in the future inflation will return to its downward path”. The libertarian president has suggested inflation could soon “start with a zero,” meaning a monthly rate of less than 1 per cent.

Economists remain sceptical, particularly as the energy price surge caused by the Iran war adds fresh pressure to already sticky price dynamics. While the annual rate of nearly 33 per cent is a significant drop from its peak of nearly 300 per cent, it remains among the world’s worst. Lorenzo Sigaut Gravina, an economist at Equilibra, noted that it is easier to reduce inflation from 30 per cent a month to 3 per cent than it is to move from 3 per cent a month to 3 per cent a year.

Milei initially relied on holding the peso’s exchange rate steady to anchor prices. When the government allowed the currency to move more freely as part of a deal with the IMF last April, inflation began climbing again. Without a firm anchor, the government must now combat deep-seated inertia built up over years. In Argentina, habits such as shopkeepers raising prices pre-emptively, families stocking up on staples, and rental contracts with automatic quarterly increases are difficult to break.

Furthermore, wages are often negotiated based on past inflation, which can feed future price rises as companies pass these costs to consumers. While manufactured goods prices are being held down by a semi-floating exchange rate and fewer trade barriers, the costs for utilities and other services are still rising after years of subsidies.

The government has resisted an explicit inflation-targeting policy for the central bank. Gabriel Caamaño, an economist at Outlier, argues that in the absence of an exchange-rate anchor or a clear policy framework, the disinflation process has lost its engine and is at an impasse. This impasse persists despite a plateaued economy and weak growth.

Argentines are feeling a significant squeeze; for instance, meat prices in Buenos Aires surged 6.9 per cent in March. Food prices nationwide rose 3.4 per cent that same month. Wages in the formal sector grew at only about 2 per cent in February, falling below the rate of inflation.

The cumulative effect is a significant erosion of living standards. Real incomes for approximately 14.5 million formal sector workers and pensioners are roughly 8 to 10 per cent lower than when Milei took office.

Recent polls reflect this deterioration, with concerns about stagnant real wages and rising unemployment—which has reached 7.5 per cent—now outweighing inflation as a priority for voters. Milei’s approval rating has fallen to 36.4 per cent, down from 49.5 per cent during his first month.

The government has also faced scrutiny regarding its inflation measurements after delaying a planned update to the consumer price index (CPI) basket, which led to the resignation of the national statistics agency head. While economists suggest the numerical impact of this delay has been negligible so far, they warn that failing to update the index carries a reputational cost in a country with a history of manipulated data.

The Iran war has caused a surge in energy prices, which is creating significant new pressure on Argentina's already "sticky" price dynamics. This external factor is one of the primary reasons economists are skeptical of President Milei’s goal to bring monthly inflation down to less than 1% in the near future.

The impact of these rising energy costs is compounded by internal policy changes and economic habits:

• Subsidy Reductions: While global energy prices are rising due to the war, local costs for utilities and other services are also increasing as the government continues to roll back years of subsidies.
• Inflationary Inertia: Some utility costs in Argentina automatically adjust based on past inflation, meaning that previous high inflation rates continue to drive current price increases.
• Stalling Disinflation: Economists warn that these rising energy costs are contributing to an "impasse" in the disinflation process, making it much harder to reduce inflation from its current monthly level of around 3% than it was to bring it down from its peak of 30%.

The semi-floating exchange rate currently acts as a mechanism to hold down the prices of manufactured goods.

While other sectors of the economy are seeing price increases, manufactured goods are experiencing more stability due to the following factors mentioned in the sources:

• Currency Management: The semi-floating exchange rate helps prevent the sharp price spikes often associated with rapid currency devaluation.
• Trade Liberalization: The effect of the exchange rate is bolstered by the removal of certain trade barriers, which further assists in keeping these prices in check.
• Sector Contrast: This trend contrasts sharply with utilities and services, where costs continue to rise because they are still being adjusted for past inflation and the reduction of government subsidies.

The Algorithmic Frame: Netflix, AI, and the VFX Workforce

 Netflix’s AI deal puts the global VFX workforce at risk. A startup founded by Ben Affleck, recently acquired by Netflix, could automate the frame-by-frame work done by artists across India, South Korea, and Latin America. Netflix’s latest acquisition is threatening thousands of livelihoods from Los Angeles to Mumbai. On March 5, Netflix acquired InterPositive, an artificial intelligence company built by Hollywood actor Ben Affleck, for an undisclosed sum.

InterPositive automates color grading, relighting, and continuity fixes, work that is currently done frame by frame by artists in India, South Korea, the Philippines, and Latin America. More than 2 million professionals work in visual effects globally. Netflix has stated it would share the technology only with in-house creative partners and not with rival production companies, with Affleck serving as a senior adviser to the streaming giant.

The jobs AI creates may not be the same—or as many—as the jobs that it replaces in the coming years. While AI had already been eroding visual effects jobs before the InterPositive acquisition, the involvement of Ben Affleck has turned a quiet industry shift into a global conversation. The impact will be hardest on entry-level workers, as these early-stage opportunities are where artists traditionally "learn by doing". If AI tools begin handling tasks like cleanup, relighting, or base compositing, these foundational roles may vanish.

In 2023, a study commissioned by Hollywood labor groups found that about 75% of entertainment industry executives were already using AI to remove, reduce, or consolidate jobs. The study estimated that as many as 118,500 positions could be lost within three years, with 80% of early adopters deploying AI in post-production. While these projections measured the U.S. impact alone, the global figure has yet to be quantified.

Some industry experts argue that efficiency gains from AI will lead streamers to commission more productions, creating new work. However, Kimberly Owczarski, an associate professor at Texas Christian University, argues this logic fails against the reality of a contracting industry. Los Angeles County alone has lost 41,000 film and television jobs in three years, representing a quarter of its entertainment workforce. Owczarski noted that a surge in new work seems unlikely given the global shrinkage in the overall number of film and TV productions.

Netflix, which had more than 325 million subscribers and generated $45.2 billion in revenue last year, did not respond to questions regarding the impact of its AI capabilities on its international post-production workforce. This is particularly significant for India, where more than 90% of Hollywood’s rotoscoping work is performed. Rotoscoping is the painstaking, frame-by-frame tracing of shapes in live-action footage that allows visual effects to be layered into a scene. Joseph Bell, author of the Visual Effects & Animation World Atlas, noted that while AI technology has not yet swept away those jobs, it "will get there sooner than later".

The InterPositive deal allows Netflix to push its investment in AI-powered production further and faster. Other major players are also staking claims; for instance, Disney invested $1 billion in OpenAI in December 2025 to license characters for the Sora video platform. The fragility of the VFX industry was recently highlighted when Technicolor collapsed under debt in February 2025, abruptly shutting its India operations and leaving 3,000 workers without pay or notice.

Amidst these shifts, Netflix opened Eyeline Studios in Hyderabad on March 12, a facility designed for what it calls "generative virtual effects". Netflix’s chief product and technology officer, Elizabeth Stone, described their approach as serving the needs of the "creative community," yet the company has not specified if VFX studios in India, South Korea, or Latin America will qualify as "creative partners" with access to InterPositive’s tools.

In the U.S., labor unions like SAG-AFTRA and the WGA are making AI protections a central demand in contract negotiations. In contrast, post-production workers across India and South Korea have no equivalent representation, and conversations about AI impact remain largely informal within teams or peer groups. Furthermore, the perception of what AI can do is moving faster than the technology itself; as Joseph Bell pointed out, even if AI cannot yet do a job, a client's belief that it can is enough to disrupt project budgets, schedules, and employment.

The Blueprint for Japan’s World-Class Railway Success

 Why Japan has such good railways Words by Matthew Bornholt & Benedict Springbett (7th April 2026)

Japan’s railways are the finest in the world, and the authors argue that other countries can copy its formula. Japan is uniquely "the land of the train," with 28 percent of passenger kilometers traveled by rail—a figure over a hundred times more likely than in the United States. The network is divided among dozens of mostly private companies; JR East alone carries more passengers than the entire railway system of every country except China and India. Despite serving ten million fewer people and having fewer kilometers of track than the British railway system, JR East carries four times as many passengers while remaining profitable and receiving far less public subsidy than Western systems.

While some attribute this success to culture, the authors assert that Japanese citizens take trains because they have the best railway system in the world, which is a result of sound public policy including business structure, land use rules, and superior privatization models.

The Structure of Japanese Railway Companies

The Japanese railway system is characterized by institutional diversity and private ownership. Although the system was nationalized in the early twentieth century as Japanese National Railways (JNR), private lines were still permitted. These "legacy private railways" evolved from electric tramlines into heavy-rail intercity connections that flourish today. In major urban areas, these operators account for nearly half of all tracks and stations. In 1988, JNR was largely privatized and broken into six regional monopolies (the Japan Railways Group, or JR). This leaves Japan with a mix of the descendant JR companies, sixteen large legacy private companies, and various minor railways and metros.

Railway-Led Urbanism: The "City-Builder" Model

A core business model for these companies is to capture the value they create by operating businesses beyond rail. For example, the Tokyu corporation allows passengers to live in Tokyu houses, work in Tokyu offices, see Tokyu doctors, and shop at Tokyu supermarkets. This "railway-as-city-builder" approach was pioneered in the 1950s by Kobayashi Ichizo of Hankyu Railways, who built suburban housing, department stores, and even a musical theater to create a passenger base. While core rail operations are profitable, side businesses in real estate and retail provide a significant portion of revenue and create a virtuous circle of transit-oriented development.

Land Use and Urban Planning

Japanese railway success is supported by liberal land use regulations that make it easy to build new neighborhoods next to lines and densify urban centers. Unlike other Asian cities, Japanese cities have vast low-rise residential suburbs, but their hyperdense centers—featuring "vertical street" buildings and underground shopping—are uniquely suited for rail’s spatial efficiency. This development is facilitated by a standardized national zoning system and private planning powers like land readjustment, which allows railways to redevelop urban areas cooperatively with local landowners.

Pricing Driving and Parking

Japan ensures that cars and trains compete on a level playing field by not extending the same implicit subsidies to cars as Western governments. Japan has privatized parking, making it illegal to park on public roads without permission; car owners must prove they have a reserved private space before purchase. Consequently, there are no "parking minimums" for developments, and in dense centers, parking is often outcompeted by more valuable land uses. Furthermore, Japanese roads are expected to be self-financing through tolls and vehicle taxes.

The Privatization of JNR

The 1988 privatization of JNR resolved chronic issues of political interference and militant labor unions. Before reform, politicians forced JNR to build loss-making rural lines, and labor costs reached 78 percent of total expenses. Privatization restored the vertically integrated model where regional companies own the tracks, trains, and stations, leading to immediate increases in productivity.

Regulation and Capital Subsidies

The system operates under generous fare maximums designed to maintain profitability per rider, which incentivizes companies to maximize ridership. While they do not receive operational subsidies, railways receive targeted government grants for public priorities like disability access, earthquake-proofing, and reducing road congestion by elevating tracks.

The authors conclude that Japan’s success is not due to a unique culture but to the restoration of institutional models that originally built the first railway systems in the nineteenth century.

The land readjustment model is a decentralized urban planning tool in Japan where agreement among a two-thirds supermajority of residents and landowners in a specific area is sufficient to allow for its comprehensive replanning. This process grants the power to compulsorily take and demolish land to make room for essential infrastructure and amenities.

Key features and applications of this model include:

• Evolution from Rural to Urban: Originally, land readjustment was primarily used to assemble rural land for new urbanization. Over time, it transitioned into a tool for redeveloping already urbanized areas, including the creation of the massive skyscrapers surrounding major Tokyo stations.
• Cooperative Railway Development: Private railway companies have historically used this model to secure land for building lines, double-tracking, and redeveloping station thresholds. This is typically done cooperatively with local businesses and landowners, rather than through a top-down government masterplan.
• Scale of Impact: Roughly 30 percent of all urban land in Japan has been subject to land readjustment.
• The Den’en Toshi Line Example: Perhaps the most famous application involved the Tokyu corporation’s Garden City Line. Over 30 years, a series of land readjustment projects covered 3,100 hectares, successfully balancing residential and commercial development (36%) with roads (17%) and green spaces like forests and parks (20%). This transformed a rural area into a high-density transit corridor, with the population growing from 42,000 to over 500,000.

By allowing homeowners and businesses to replan neighborhoods privately, Japan has been able to facilitate the densification of urban centers and the creation of "vertical cities" that are uniquely efficient for rail transport.

 

How Australia really stopped the boats

Words by Amelia Wood 17th April 2026

Many countries want to copy Australia’s immigration rules. But its most-copied border policy is not the one that worked.

Since 2014, around three million people have crossed the Mediterranean Sea to claim asylum once they reach European shores. These crossings are extremely dangerous: 33,000 people are missing, presumed dead, according to figures from the International Organization for Migration—a mortality rate of one percent. Unicef reports that at least 3,500 of them were children.

These crossings are deeply unpopular with Europeans. The vast majority of voters tell pollsters that ‘the fight against irregular migration’ is a priority, and three-quarters favor reinforcing the EU’s external borders. Populist-right parties have gained significant support due to their opposition to the current asylum system.

In response, Europe’s leaders are turning to offshore processing: sending and holding asylum seekers overseas while their claims are adjudicated. Britain previously attempted a plan to send asylum seekers to Rwanda permanently, and Italy is currently arguing to send those collected at sea to Albania. Denmark has passed similar legislation, and it is likely the EU as a whole will follow suit in June 2026.

Europe’s politicians are keen on this approach because they believe Australia solved its own boat problem using it. Unauthorized boat arrivals to Australia peaked at over 25,000 people between 2012 and 2013, then dropped to zero for almost a decade after a new policy regime kicked in. However, there is a problem with this narrative: offshore processing did not stop the boats. Instead, Australia’s success lay in turning boats back to their country of origin before they reached Australian shores.

The first and second waves

Unauthorized boat arrivals in Australia began in the 1970s with Vietnamese refugees. They were generally well received, and most were granted refugee status quickly. The second wave started in 1989, and for the next nine years, about 300 people arrived annually.

In 1999, boat arrivals rose tenfold, and by 2001, they doubled again. These arrivals were increasingly from the Middle East or Central Asia, often using smugglers from Indonesia. In August 2001, the Tampa affair—where the Australian navy boarded a Norwegian ship that had rescued 433 Afghan asylum seekers to prevent them from landing—led to a much tougher stance called the Pacific Solution.

The Pacific Solution involved three main policies:

1. Excising islands from Australia’s migration zone so arrivals couldn't legally apply for asylum.
2. Offshore processing on Nauru or Papua New Guinea.
3. Operation Relex, which ordered the navy to intercept and turn boats back to Indonesia.

The impact was nearly instantaneous: only one person landed in Australia in 2002, compared to 5,516 in 2001. While some argued the drop was due to calmed conflicts or the "spectacle" of the Tampa, the policies were clearly effective.

The third wave

The Pacific Solution was ended by Kevin Rudd’s Labor government in 2008. Consequently, boats returned, with arrivals rising 17-fold in 2009. In 2012, Prime Minister Julia Gillard reinstated offshore processing on Nauru and Papua New Guinea as a "matter of urgency."

This time, it didn’t work. In the six months following the reintroduction of offshore processing, 10,000 more people arrived. Facilities were overwhelmed, and many arrivals were simply given visas to live in Australia while their claims were assessed.

In 2013, the government took a harder line: arrivals after July 13 would be sent offshore and never be allowed to settle in Australia, even if granted refugee status. This was followed by the election of Tony Abbott, who launched Operation Sovereign Borders, shifting the focus back to boat turnbacks. The navy began using commercial and purpose-built lifeboats to tow passengers back to international or foreign waters. In 2014, only a single boat reached Australia, and none did for nearly a decade afterward.

Offshore processing didn't work. Turnbacks did.

The evidence suggests that turnbacks were the decisive factor. When offshore processing was reintroduced by Gillard, arrivals actually hit record highs because it was no longer a "credible blocker." Thousands concluded it was still worth the chance because, historically, 70 percent of those sent offshore eventually made it to Australia or another rich country.

The final proof is that in 2014, the Australian government quietly ended offshore transfers because facilities were full, relying only on turnbacks. Boat arrivals remained nil for years, proving turnbacks alone were enough.

Learning the wrong lessons

Offshore processing appeals to European leaders because it is "out of sight and out of mind," whereas water operations are visible, risky, and legally difficult. However, offshore processing is:

• Hugely expensive: Australia spent A$1.5 billion ($1 billion USD) a year on it after 2012.
• Cruel: Some refugees remained stuck on Nauru for 11 years, and six people committed suicide while held offshore.

While turnbacks have costs—including the risk of stopping legitimate refugees—Australia’s policy has, on net, made its waters safer. Between 2008 and 2013, over 1,200 people drowned attempting the crossing; no one is believed to have drowned in the years after turnbacks were reintroduced because the incentive to make the dangerous journey was removed.

Crucially, control of the border has preserved public consensus. Australians now hold more positive views about asylum seekers than people in 28 other rich countries surveyed by Ipsos. In 2023, Australia accepted three times as many asylum claims as it did in 2013, with little public outcry.

Turning boats around, not processing people offshore, is what really worked.

The Rapid Rise of Hyper-Accelerated Online Degree Hacking

 

Students are speeding through their online degrees in weeks, alarming educators

Some online colleges allow students to take unlimited courses on their own time, leading to quick degrees and worries about devaluing credentials.

By Todd Wallack April 19, 2026

It takes most college students at least four years to earn a bachelor’s degree, but Christie Williams finished in three months. The North Carolina human resources executive spent two months racking up credits through web tutorials after work in 2024, then raced through 11 online classes at the University of Maine at Presque Isle in four weeks. Later that year, she went back to earn her master’s — in just five weeks. The two degrees cost a total of just over $4,000. Since then, she has coached a thousand other students on how to speed through the state college, shaving off years and thousands of dollars from the usual cost of a degree. “Why wouldn’t you do that?” Williams asked. “It’s kind of a no-brainer if you know about it”.

Many U.S. schools have been experimenting with ways to speed up traditional college programs to reduce the burgeoning cost and help students move into the workforce faster. Some offer three-year bachelor’s programs, reducing the number of credits needed for a diploma by one quarter. Many more allow students to enroll in college classes while still in high school. But the breakneck pace of the fastest online programs concerns some academics, who say there is a big difference in what students can learn in weeks or months compared with three or more years.

The phenomenon — sometimes referred to as degree hacking, college speed runs or hyper-accelerated degrees — has spawned a cottage industry of influencers making videos about how quickly they earned their degrees and encouraging others to follow suit. Supporters of the approach tout it as an affordable, convenient way for people to earn credentials they need for their careers. Others, including some online students and academic officials, expressed concern about what the super-accelerated students are missing, and whether a quick path devalues degrees. “We want diplomas that mean something,” said Marjorie Hass, president of the Council of Independent Colleges. “I would prefer to have some of these degrees called something other than a bachelor’s”.

Nationally, it’s hard to know exactly how many students are graduating so quickly. The National Center for Education Statistics estimates that 44 percent of students finish a bachelor’s degree within four years but doesn’t offer numbers for shorter time periods. The University of Maine’s Presque Isle campus has more than 3,000 students in its online YourPace program. The school’s president said the program is designed to help older, nontraditional students rapidly obtain an affordable degree they may need for a raise, promotion or new job — students who don’t need the traditional longer college experience on campus that many young adults crave. “They literally just need a certificate” to help their careers, said Raymond Rice, president of the Presque Isle campus. He said the program is open only to students age 20 and older, in part to avoid competing with its traditional four-year program on campus.

Of the nearly 300 students who earned a bachelor’s in the YourPace program in fall 2024, the vast majority finished in less than a year. More than 1 in 4 finished their entire degree course load in a single eight-week session, half the length of a traditional academic semester. Under a system known as competency-based education, students typically must finish several assignments or pass a test to prove they learned the material, regardless of how long it takes. In a philosophy class Rice oversees, students have to show they learned the online material by completing five five-page essays and one longer paper that’s up to 10 pages. There are no class meetings, no group discussions, and no weekly assignments to slow students down. “The students demonstrate how much they can learn as quickly as they can,” Rice said. “They take as long or as short as they need to get there”.

At some schools, students can sign up for as many classes as they want for a flat price per term. For instance, the YourPace program in Maine charges $1,800 per eight-week session for undergraduate programs and $2,450 for graduate degrees. That gives students a powerful financial incentive to push through the programs as quickly as possible to limit the cost and avoid taking out significant student loans. Low-income undergraduate students may be eligible for Federal Pell Grants that help cover the cost. “That’s what is so dramatic and so impactful,” Rice said.

One reason some working adults can speed through the programs is that many have taken at least some college classes in the past and have credits to transfer. More than 43 million students in the United States started college but never earned a degree. The online schools best known for accelerated degrees, such as Maine’s Presque Isle campus and Western Governors University, also let students transfer in as many as three-quarters of the credits from nontraditional sources. That includes giving students credit for past learning on the job, passing tests that show they already know the material, or completing tutorials from online learning platforms such as Study.com, Sophia Learning and StraighterLine.

The head of the New England Commission of Higher Education, which oversees the accreditation of the University of Maine system, told The Washington Post that he had never heard of students completing a bachelor’s degree in only a few months. He said that is something his organization may decide to investigate. “If students are getting a baccalaureate degree in a few months, the commission could certainly inquire, ‘Is there integrity to the degree to be awarded?’” said Larry Schall, president of the commission.

Serenity James of Atlanta completed 16 courses through an online learning platform in 22 days. That gave her most of the credits she needed for a bachelor’s degree at Western Governors. She finished the remaining 13 classes in two months last year and spent 2½ months earning a master’s of business administration. Altogether, she said, the degrees cost less than $9,000, which was covered by a scholarship, her employer and a Federal Pell Grant. Western Governors — one of the largest colleges in the country, with more than 194,000 students — did not respond to requests for interviews or additional data. The nonprofit school’s website says that students finish their bachelor’s degrees in an average of 2.5 years, but that many “finish significantly faster than that!”.

James, who has a 6-year-old daughter and a full-time job, said she never would have been able to attend a traditional college in person. She said she had little contact with her professors or fellow students but was in touch regularly with a mentor assigned to her by the college. The work has already paid off, as she earned a promotion to a new, higher-paying job with her employer, a national health insurance company, after finishing the degrees. “It’s the best thing that’s ever happened to me, honestly,” said James, 25. She said no one has questioned how long it took her to earn her degree or the name of the school. “People should do what works for them,” she said.

Some users on a Reddit forum for Western Governors have pleaded with peers to stop bragging that they earned degrees in weeks or months, worrying it damages the school's reputation and devalues the degree. The complaints spurred Reddit moderators to create a separate forum for accelerated students to reduce the conflict. The head of the accreditor for Western Governors said she is confident that the school complies with standards. Selena Grace, president of the Northwest Commission on Colleges and Universities, said the school just has a different model that allows students to move at their own pace. “Students are demonstrating competency,” Grace said.

Historically, the Education Department has recommended that students spend at least three hours per week per credit hour for a traditional class. So a typical three-credit class might require 135 hours of work over a 15-week semester. But there’s no equivalent time recommendation for competency-based courses. Some of the ultrafast finishers have also sparked worries about cheating. In January, Purdue Global stopped students from taking an unlimited number of classes in a term without permission in its ExcelTrack program, citing concerns about “academic integrity and the value of a Purdue Global degree”. A spokeswoman for Purdue Global said ExcelTrack was never intended to be a six-month degree. The school said students finish a bachelor’s degree on average in a little more than two years.

The growing interest in fast degrees has spawned a mini-industry of coaches offering advice on how to find a school, figure out what classes to take and speed through the programs. College Hacked offers a 50-minute coaching session for $295. Ryan Swayt, who completed his bachelor’s degree at Western Governors in nine months, offers everything from a $5 how-to book to extensive one-on-one coaching sessions for $1,500, a program he calls Degree Hacking Academy. Swayt also has recorded hundreds of YouTube videos with tips on how to finish college fast. Christie Williams, the graduate of Maine’s YourPace program, is also selling advice, charging $99 to $199 per student. Williams plans to walk in the graduation ceremonies for the University of Maine at Presque Isle next month after earning three degrees from the university. This year, she reenrolled at the school for five weeks to earn a third degree. Her daughter also utilized online learning platforms and, just like her mother, finished her bachelor’s degree in a single eight-week session — summa cum laude — with highest honors.

Getting Skills Right: Anticipating and Aligning Future Skill Needs

 The design of Skills Assessment and Anticipation (SAA) exercises is fundamentally driven by their intended purpose, which in turn dictates the choice of unit of analysis, geographical and sectoral scope, and time horizon. In the context of higher education, these design features are critical for ensuring that academic provision aligns with evolving labour market needs to reduce skills mismatches, which currently affect a significant portion of the EU workforce.

Core Design Features of SAA Exercises

According to the sources, the following features are central to designing an effective SAA exercise:

• Unit of Analysis: Most SAA exercises focus on occupations (13 out of 17 reviewed) because they are useful for a wide range of policies and their data is more readily available. However, about half also analyze skills (8 out of 17), and a minority look at qualifications (5 out of 17). While occupational analysis is common, it risks missing internal shifts in skill requirements within a single job. Exercises specifically targeting higher education often look directly at qualifications to inform prospective students and institutional provision.
• Geographical and Sectoral Coverage: High-performing systems often provide a national overview while offering granular information at the sectoral or regional level. Some exercises, like Estonia’s OSKA, use a bottom-up approach, starting with sectoral analysis that is later aggregated. Most exercises aim to cover all education levels to minimize costs, though some focus exclusively on higher education or vocational education.
• Time Horizon: Exercises range from assessing current needs to long-term projections (6+ years). Short-term forecasts are generally more accurate and useful for immediate training interventions, whereas long-term forecasts (like Sweden's 15-20 year study) support strategic planning but are more susceptible to unforeseen structural changes.
• Frequency of Updates: Most exercises are updated annually, particularly those using quantitative methods like online job vacancy (OJV) data. Frequent updates allow for continuous monitoring, but they can be resource-intensive and may outpace the ability of policy makers to react.

Implementation and Methodological Design

The sources emphasize that the choice of data and methodology is a key design consideration to ensure the results are robust and actionable:

• Methodology: Quantitative methods (e.g., simulation models and big data analysis) offer consistency and comparability across sectors and time. However, they often lack the granularity required to update specific curricula. Therefore, mixed methods—combining quantitative data with qualitative input from expert groups or stakeholders—are considered best practice.
• Data Sources: Common sources include administrative records, labour force surveys, and OJV data. Qualitative information is often used to validate quantitative results or to identify "new" skills that are not yet visible in historical datasets.

Context of Higher Education Adaptation

In the larger context of Adapting Higher Education, SAA results are used to inform policy in several ways:

• Informing Provision: SAA results help determine the number of study places (quotas) and the content of programs.
• Guidance and Incentives: Governments use SAA data to provide career guidance for students and to create financial incentives (like the Human Capital Initiative in Ireland) that encourage the supply of skills in high-demand fields.
• Specific Challenges for HE: Identifying skills supply in higher education is more complex than in Vocational Education and Training (VET). VET skills are often aligned with learning outcomes in a National Qualification Framework, whereas higher education skills are often defined at the institutional level, making them harder to document and track formally. Efforts are currently underway to use new technologies to extract these skills from program descriptors.

Ultimately, high-performing SAA systems move from being a single "exercise" to becoming a coordinated system. This involves a core SAA exercise supplemented by multiple complementary studies with different time horizons and high stakeholder engagement to ensure the information is clearly presented and used by education providers.

The implementation of Skills Assessment and Anticipation (SAA) exercises involves selecting appropriate data sources and methodologies to estimate current and future skill needs. In the context of adapting higher education, these methods must navigate the specific challenges of identifying high-level skills supply and demand to ensure that academic offerings remain relevant to the labour market.

Data Sources for SAA Implementation

Most SAA exercises rely on a combination of quantitative and qualitative data. The sources include:

• Quantitative Data: All reviewed exercises use quantitative information, with most leveraging at least two different sources.
  • Administrative and Survey Data: Social security records and national labour force surveys provide representative data on employment by occupation but may lag in identifying real-time shortages.
  • Online Job Vacancy (OJV) Data: This is a major innovation, providing high-frequency, granular data on skills demand and new occupations.
  • Graduate Employability Surveys: Particularly relevant for higher education, these surveys (as seen in Hungary and Italy) track how recent graduates enter the labour market and whether they possess the required skills.
• Qualitative Data: This information is gathered through expert groups, stakeholder interviews, and validation exercises. It is crucial for identifying "new" skills or technological shifts not yet visible in historical datasets.

Methodological Approaches

SAA exercises utilize three primary methodological frameworks:

• Quantitative Methods: These include simulation models (like time-series or stock-and-flow models) to project long-term needs, and big data analysis for real-time demand. They offer consistent, transparent results across sectors but require high levels of statistical expertise.
• Qualitative Methods: Easier to implement than complex econometric models, these methods rely on expert observations to identify specific skill needs and mismatches. However, they can be subjective and may lack the broad comparability of quantitative models.
• Mixed Methods: This is considered best practice, as qualitative input is used to validate the assumptions or results of quantitative models. For instance, in France’s "Occupations 2030," qualitative information validates the quantitative model's assumptions.

Implementation Challenges in Higher Education

Implementing SAA specifically for higher education adaptation presents unique difficulties compared to Vocational Education and Training (VET):

• Identifying Skills Supply: While VET skills are often aligned with learning outcomes in a National Qualification Framework (NQF), higher education skills are frequently defined at the institutional level.
• Lack of Formalization: Because higher education institutions (HEIs) often have significant autonomy, their programme descriptors may not be standardized.
• Innovative Solutions: To bridge this gap, some systems are now using new technologies (such as AI) to extract and identify skills supply directly from higher education programme descriptors and curricula documentation.
• Graduate Tracking: Some countries, like Hungary, use a Graduate Career Tracking System that matches enrolment data with administrative labour market information to see exactly which qualifications are in high demand based on wages and employment rates.

By coordinating these implementation methods, high-performing systems move beyond simple "exercises" to create a coherent data infrastructure that supports policy makers in adjusting study quotas and updating curricula.

The institutional setup of Skills Assessment and Anticipation (SAA) is a critical success factor in ensuring that labour market insights effectively lead to the adaptation of higher education. High-performing systems move beyond isolated activities to create a coordinated SAA system involving diverse stakeholders, robust governance frameworks, and sustainable funding.

Stakeholder Involvement

The sources emphasize that engaging the right institutions and stakeholders—including social partners, education providers, and public bodies—ensures results are validated and tailored to user needs. Stakeholders participate in various stages:

• Design and Implementation: Entities like the Union of Chambers of Commerce in Italy (Excelsior) or the AlmaLaurea University Consortium not only set up and implement exercises but also use the results to update academic programs.
• Providing Inputs: Ministries, Public Employment Services (PES), and higher education institutions (HEIs) provide data on job vacancies, student enrollment, and demographic trends.
• Validation: In systems like the Netherlands' POA and Estonia's OSKA, social partners and experts review results to provide feedback and ensure "on the ground" accuracy.
• Extending Results: Groups like the Expert Group on Future Skills Needs in Ireland use core quantitative results as a starting point for deeper qualitative analysis to better align education with employer needs.

Governance Frameworks

Effective governance ensures that stakeholder contributions are coordinated and that there is a clear process for making policy recommendations. The sources identify two primary approaches:

• Project-level Governance: Focused on recurring data operations or one-off research projects (e.g., the Dutch POA or Slovenia’s Labour Market Platform), where governance is often established through contractual agreements between project owners and operators.
• Multi-stakeholder Governance: Dedicated bodies coordinate across multiple exercises and policy areas. Examples include Estonia's OSKA Coordination Council and Finland's Skills Anticipation Forum, which involve representatives from ministries of education and labour, regional bodies, and employer/employee associations.

The Specific Case of Higher Education

Historically, higher education stakeholders have been less involved in SAA governance compared to vocational education and training (VET). This is due to institutional autonomy, where HEIs have more freedom to set curricula, and a broader funding base that makes them less dependent on state directives. However, some countries are shifting toward more targeted engagement:

• Finland includes student unions and the Conference of University Rectors in its SAA steering group.
• Australia established an Education and Training Advisory Group in 2024 to ensure tertiary sector input reaches strategic decision-makers.
• Sweden mandates the Council for Higher Education to cooperate with other public bodies to develop a coherent data infrastructure on skills supply.

Funding and Resources

Most whole-of-economy SAA exercises are publicly funded, typically by the Ministry of Labour or the PES, reflecting their role in workforce planning. However, ministries of education often contribute when the goal is to update study places or curricula. Some systems, like Italy's AlmaLaurea, use a mix of university consortium funds and ministry support. EU funding, such as the European Social Fund Plus (ESF+), also supports the development of these systems in countries like Estonia and Slovenia.

From Exercise to System

A key evolution noted in the sources is the move from a single "exercise" to a coordinated SAA system. In these systems, a core quantitative exercise is often supplemented by thematic or sectoral studies. For example, the results of Ireland’s core SAA unit are further developed by regional skill fora to tailor education and training to specific local needs. This coordination avoids the duplication of work and ensures that all actors use consistent definitions and data, making results comparable across the entire education and labour market landscape.

The impact of Skills Assessment and Anticipation (SAA) on policy is realized when its insights are translated into actionable strategies for higher education (HE) providers, students, and government bodies. These sources highlight that while SAA results are used for diverse purposes—including migration policy and industrial planning—their primary impact in the context of higher education is felt through provision planning, financial incentives, and learner guidance.

Core Policy Use Cases

The sources identify several key areas where SAA results directly inform policy and practice:

• Updating Curricula: Insights on emerging skill needs help institutions revise existing programs or develop new ones to ensure graduates possess industry-relevant skills.
• Capacity Planning: Governments use SAA data to decide whether to increase or reduce the number of study places in specific fields based on projected demand.
• Career Guidance: One of the most frequent uses of SAA is providing prospective students with information on labour market prospects to support informed educational choices.
• Workforce Planning: While less common than education-focused uses, SAA results can also help private companies with their long-term talent management and recruitment strategies.

Policy Levers for Higher Education Adaptation

Unlike Vocational Education and Training (VET), which often has direct links to SAA, higher education typically requires indirect policy approaches due to institutional autonomy.

1. Regulatory Pathways

• Occupational Standards: Governments increasingly require HE programs to define learning outcomes aligned with occupational standards. In Estonia, the Qualifications Authority (Kutsekoda) ensures that OSKA results are integrated into occupational standards that HE programs must reference.
• Mandatory Quotas: In some systems, public authorities adjust state-funded study quotas based on SAA results. This is common for regulated professions (e.g., health and teaching) in the Netherlands, but countries like Denmark and Portugal apply these caps to a broader range of undergraduate programs.

2. Financial Incentives

• Subsidizing Provision: Initiatives like Ireland's Human Capital Initiative (HCI) use competitive funding to encourage HEIs to develop new programs in areas identified as high-priority skills needs, such as ICT and engineering.
• Stimulating Learner Demand: Policies may include tuition fee waivers or reductions for students entering high-demand fields. For example, Hungary provides state-funded places for doctoral students in mathematics, natural sciences, and engineering to address high talent demand.
• International Attraction: Countries like Scotland and Denmark use SAA results to refine talent attraction strategies, targeting international students to fill domestic skill gaps in growth sectors.

Supporting Learner Choices through Information

For SAA to impact student behavior, the data must be accessible and user-friendly.

• Career Education: High-quality guidance services in schools use SAA outputs to help students navigate early career uncertainty.
• Online Portals: Many countries maintain sophisticated platforms for this purpose. The French ONISEP portal is noted for its comprehensive integration of labour market trends into educational guidance for both students and professionals. In New Zealand, HEIs are required to publish Key Information for Students (KIS) for every program, including labour market outcomes.

Dissemination and Accessibility

The actual impact of an SAA exercise depends on how well its results are communicated. High-performing systems adapt complex data into various formats:

• Thematic and Sectoral Reports: Regular publications tailored to specific industries or regions.
• Innovative Formats: Estonia uses web-based "trend cards" to interactively display how trends like the green transition affect jobs and skills. Finland utilizes "needs cards" that succinctly present forecast data through graphics.
• Data Products: Some systems, like France's Occupations 2030, provide online visualization tools that allow researchers and policymakers to extract and compare regional skill needs.

Restoring the Mission: Yale Report on Trust in Higher Education

 The current state of trust in higher education is described in the sources as being in a state of real and urgent crisis, characterized by a historic decline in public confidence. While Americans historically held high regard for these institutions, the sources highlight a significant and rapid erosion of that faith over the past decade.

Quantitative Decline in Trust

The sources provide stark data illustrating this decline:

• Historic Lows: Just a decade ago, 57% of Americans expressed high confidence in higher education; by 2024, that number dropped to a historic low of 36%.
• Negative Trajectory: As of 2025, 70% of Americans believe higher education is heading in the wrong direction.
• Relative Decline: Although trust in many civic institutions (like media and government) has fallen since the 1970s, trust in higher education has declined faster than in other sectors over the last ten years.

The "Hierarchy of Distrust"

Trust is not uniform across all types of institutions. Public opinion polls show that community colleges remain the most trusted part of the system. In contrast, wealthy, selective private universities—specifically the Ivy League—face the greatest public skepticism.

Primary Drivers of Public Distrust

The Yale Committee identified three immediate factors fueling this rise in skepticism:

1. Cost and Value: The soaring price of tuition, which has more than doubled in real terms over thirty years, has led to a perception that a degree is no longer worth the financial sacrifice. The sources note a "debt crisis" where nearly a quarter of federal student loan borrowers are in default.
2. Admissions Opacity: The undergraduate admissions process is viewed as subjective, inexplicable, and tilted toward the wealthy. The reliance on "holistic" reviews rather than transparent, rule-based criteria contributes to the belief that the system is "rigged" for the advantaged.
3. Campus Culture: Concerns regarding free speech, political bias, and self-censorship have damaged the university's reputation as a center for open inquiry.

Internal Trust and the "Diffusion of Purpose"

The report emphasizes that the crisis is not just external; there are "complementary issues of trust within the university itself". This internal erosion is driven by:

• Grade Inflation: At Yale, the percentage of "A" or "A-" grades rose from 10% in 1963 to 79% in 2022–23, rendering grades "almost meaningless" as an academic measure.
• Administrative Growth: Widespread concerns about "administrative bloat" and a lack of transparency regarding how resources are allocated between academic and non-academic functions.
• Technological Distraction: The ubiquity of smartphones and the rise of AI are seen as undermining the sustained attention and human expertise essential to the academic mission.

The Political Dimension

Trust has become deeply polarized. Confidence among self-identified Republicans plummeted from 56% in 2015 to 26% in 2025, while Democratic confidence saw a much more modest decline (68% to 61%). This is linked to the perception of universities as "ideological echo chambers," noting that at Yale, registered Democrats outnumber Republicans by a margin of 36 to 1 in key faculties.

Conclusion: A Crisis of Mission

Ultimately, the sources suggest that trust is declining because of a "diffusion of purpose". Universities have attempted to be "all things to all people"—selective but inclusive, affordable but luxurious—which has made it difficult for the public to judge if they are living up to their fundamental commitments. The committee argues that rebuilding trust requires a return to the core mission of creating, preserving, and sharing knowledge.

The Yale Committee on Trust in Higher Education identifies three immediate factors that have driven the recent and rapid rise of public distrust in universities. These factors represent the most visible gaps between public expectations and institutional practices.

1. The Soaring Cost and Perception of Declining Value

The most dominant factor identified by the public is that higher education has become too expensive.

• Rising Tuition: Over the last 30 years, undergraduate tuition has more than doubled after adjusting for inflation. At Yale, the full cost of attendance now exceeds $94,000 annually, which is significantly higher than the U.S. median family income.
• The "High Tuition-High Aid" Paradox: While elite schools like Yale have expanded financial aid (making it free for many), the sticker price remains a "fiction" that confuses and deters families. This complexity is described as "ineffective" for building trust.
• The Debt Crisis: Public skepticism is fueled by a national debt crisis, with nearly a quarter of federal student loan borrowers in default. This leads to a perception that the economic return on a degree is no longer guaranteed, making recruitment promises feel like an "indictment" of the system.

2. Opacity and Inequity in Admissions

The sources highlight that the undergraduate admissions system is widely viewed as inexplicable and unfair.

• Subjectivity of "Holistic" Review: While designed to build a diverse class, the holistic process is criticized for being subjective and hard to defend publicly.
• Preference for the Advantaged: Data indicates that the process disproportionately benefits wealthy applicants, specifically through preferences for legacies, varsity athletes, and children of donors or faculty.
• Lack of Academic Standards: The sources note that Yale’s admissions website lacks a stated "minimum threshold" for academic preparation, which makes it difficult to reconcile the process with a mission of "academic excellence".

3. Campus Culture: Free Speech and Political Bias

The third factor involves growing concerns about what is said and taught on campus.

• Self-Censorship: Internal data reveals that self-censorship is a rising problem; by 2025, nearly a third of Yale undergraduates reported they did not feel free to express their political beliefs.
• Political Homogeneity: Trust is particularly low among conservatives who view universities as "ideological echo chambers". The report notes that at Yale, registered Democrats outnumber Republicans by a margin of 36 to 1 in key faculties, fueling the perception of political bias.
• "Cancel Culture": Incidents like the 2015 "Halloween" controversy at Yale became international symbols of a culture where "one wrong word" could lead to social sanctions, damaging the university's reputation as a center for reasoned debate.

The Larger Context: Diffusion of Purpose

In the broader context of the report, these immediate factors are symptoms of a deeper "diffusion of purpose". The committee argues that universities have undermined their own legitimacy by trying to be "all things to all people"—attempting to be simultaneously selective and inclusive, or meritocratic and equitable.

This external distrust is compounded by internal trust issues, such as:

• Grade Inflation: Grades have become "almost meaningless" as an academic measure, with 79% of Yale grades being an A or A-.
• Administrative Bloat: The growth of non-academic "bureaucratic expansion" has obscured how resources are allocated to the core mission.

The report concludes that rebuilding trust requires a radical return to the core academic mission: the creation, preservation, and sharing of knowledge.

The Yale Committee on Trust in Higher Education identifies several internal institutional challenges that have eroded trust from within the university, noting that these issues are just as "real and urgent" as external public skepticism. These internal pressures often stem from a "diffusion of purpose," where institutions attempt to satisfy conflicting goals—such as being simultaneously selective and inclusive—without a clear, unified mission.

The Devaluation of Teaching and Learning

The sources argue that there is "no greater threat" to higher education than the devaluing of the classroom experience. This internal erosion is driven by several factors:

• Shift in Priorities: Tenure-track faculty are often encouraged to prioritize research over teaching, while universities increasingly rely on underpaid adjunct instructors for classroom instruction.
• Administrative Growth: While academic staffing models have shifted toward contingency, there has been a significant expansion of full-time administrative staff to manage non-academic aspects of campus life.
• Professionalization of Students: The centrality of academic work is further undermined by a culture where students focus on non-academic pursuits, such as early-career recruitment in finance or consulting, often before they have completed a full round of classes.

The Crisis of Meaningful Assessment (Grade Inflation)

The committee highlights that grading practices at Yale and its peers have lost their ability to communicate relative student achievement.

• Grade Compression: In 1963, only 10% of Yale grades were an A or A-; by the 2022–23 academic year, that number soared to 79%.
• Trustworthiness of Grades: Because grades now cluster at the top, they are described as "almost meaningless" and "no longer seem trustworthy" as a measure of academic excellence.
• Collective Action Problem: The report notes that individual faculty members are often reluctant to grade strictly for fear of disadvantaging their students or receiving poor evaluations, creating a cycle where "no one can stop" the inflation.

Technological and Intellectual Fragmentation

The internal culture of learning is also being reshaped by technological and curricular shifts:

• The Problem of Attention: Ubiquitous smartphones and laptops in classrooms have created an environment of constant distraction, undermining the "sustained attention" necessary for rigorous education.
• The Impact of AI: The rise of artificial intelligence is viewed as a disruption to established academic work, potentially undermining the value of human expertise and disciplined thinking.
• Lack of Shared Knowledge: Because Yale’s curricular requirements are highly diffuse, students often graduate without a shared intellectual experience or a common "intellectual foundation".

Governance and Bureaucratic Opacity

The report identifies significant challenges in how the university is governed and how it accounts for its resources:

• Administrative Bloat: There is widespread internal and external concern regarding "bureaucratic expansion," yet the committee found it "remarkably difficult" to determine exactly what share of resources is devoted to core academic functions versus non-academic ones.
• Governance Strain: The traditional model of shared governance between faculty, administration, and trustees has been strained by the growth of these non-academic functions.
• Admissions Opacity: The "holistic" admissions process is described as subjective and hard to explain, even to those within the institution, leading to perceptions that the system is "rigged" for the advantaged.

The Yale Committee on Trust in Higher Education offers 20 key recommendations aimed at rebuilding both public and internal confidence by returning to the university’s fundamental academic mission. These recommendations serve as a direct response to the "diffusion of purpose" that the committee identifies as a primary driver of distrust.

I. Reaffirming the Core Mission and Values

The committee argues that trust is earned by doing what you say you are going to do and doing it well.

• Focus on the Mission: The report recommends adopting a focused mission statement: "to create, disseminate, and preserve knowledge through research and teaching". This is intended to replace more expansive goals that contribute to a "diffusion of purpose".
• Take Responsibility: The university must admit where it has been wrong and be willing to engage in self-scrutiny rather than resisting criticism.
• Protect Free Speech and Academic Freedom: Yale should continue to use the 1974 Woodward Report as its touchstone for free speech. Additionally, it should formally adopt and publicly defend principles of academic freedom that protect faculty research and teaching from external and internal pressures.

II. Addressing Accessibility and Fairness

To combat the perception that elite education is an exclusive "racket" for the wealthy, the committee proposes structural reforms:

• Make Education Affordable: Yale should continue to raise the income limits for its "no tuition" guarantee (currently at $200,000) and provide more transparency regarding the actual price of attendance versus the confusing "sticker price". It also recommends expanding aid to professional schools like Nursing and Public Health, where debt often outweighs likely earnings.
• Reform Admissions: The committee advocates for a "standard of candor," only using criteria they are willing to defend publicly. Specifically, they recommend reducing preferences for legacy applicants, varsity athletes, and children of donors. They also propose establishing a minimum academic threshold (such as a minimum SAT score) to ensure the process visibly prioritizes academic achievement.

III. Re-centering the Classroom and Academic Rigor

The report identifies the devaluing of teaching and learning as a major threat to institutional legitimacy.

• Grade Like We Mean It: To address grade inflation (where 79% of Yale grades are A or A-), the committee suggests a 3.0 mean college-wide standard. Immediately, they recommend that the Registrar include course percentiles on transcripts so that an A-minus in a difficult course is recognized as a distinction.
• Pay Attention (Device-Free Policy): To combat the "constant distraction" of smartphones and laptops, the committee recommends a device-free default for all classrooms.
• Create Common Knowledge: To provide a shared intellectual foundation, the committee proposes a civic education initiative for all first-year students focused on the structure of government, quantitative reasoning, and scientific challenges.

IV. Intellectual Pluralism and Openness

Reversing the trend toward "ideological echo chambers" is seen as essential for high-quality research and teaching.

• Open Minds: Departments should conduct self-studies starting in 2026–27 to examine the breadth of their intellectual commitments and the diversity of perspectives in their curricula.
• Resist Self-Censorship: Faculty and students should jointly develop classroom principles that encourage open inquiry and good-faith participation.
• Open the Gates: Yale should initiate a grant program for students and faculty to experiment with making the university’s educational resources more broadly available to the local community and the public.

V. Collaborative Governance and Operations

The committee believes these reforms are only as durable as the structures that implement them.

• Streamline Bureaucracy: Yale should undertake a transparent review of its administrative structure, moving toward a principle where it is "hard to administratively expand, and easy to contract".
• Trust with Trustees: To bridge the gap between the Board and campus life, the report recommends appointing faculty representatives as liaisons to the Board of Trustees and ensuring the Board always includes experienced scholars.
• Govern Collaboratively: Major reforms should involve faculty-led committees consulting broadly with students, staff, and unions to ensure the legitimacy and longevity of new policies.

Newspaper Summary 210426

 

SBI targets ‘balance-sheet size of 25% of India’s GDP by 2030’

BOTTOM-UP APPROACH. Plans to improve market share by 1 per cent in 800 districts

India’s biggest bank wants to grow even bigger. State Bank of India (SBI) plans to expand its balance-sheet to about 25 per cent of the country’s GDP by 2030 from about 20 per cent now.

The state-owned bank, which has been doubling its balance-sheet roughly every six years, is eyeing an improvement in its market share by one per cent in each of the 800 districts in the country in FY27 in the run up to its balance-sheet expansion goal. Each district will be treated as a distinct growth unit with strategies tailored to local opportunities, said senior executives versed with the bank’s roadmap.

As at December 2025 end, SBI’s balance-sheet stood at ₹71.62 lakh crore. The bank’s total business (deposits: ₹57.01 lakh crore plus advances: ₹46.28 lakh crore) stood at ₹103.29 lakh crore. Further, its market share in deposits and advances stood at about 22 per cent and 20 per cent, respectively.

Global Ranking

The SBI’s ambitious goal comes even as it has already set its sights on moving up the ranking scale of global banks by market capitalisation. In November 2025, Chairman Challa Sreenivasulu Setty said SBI aims to rank among the top 10 global banks on this metric against its then 27th position.

Push for Deposits

To add heft to its business, on the liabilities front, SBI will pursue themes such as “ABCD” (all branches to contribute to deposits), activate at least 25 per cent of unclaimed deposits (which total ₹19,500 crore), and tap Gen Z, young professionals, and the emerging affluent segment.

Balanced Lending

On the assets front, the bank will take a balanced approach, combining expansion in the corporate segment with traditional segments such as RAM (retail, agriculture, and MSME), supported by a strong push towards end-to-end digital journeys.

Also in the works is a move to deploy “Seva Sarathis” (service guides) in 10,000 high footfall branches and identify white spaces to expand its branch footprint. Further, the lender will remove the distinction between home and non-home branches, enabling customers to undertake transactions at any branch.

New YONO App

SBI is also setting much store by its new mobile banking app, YONO 2.0, which was launched in 2025. It expects to onboard and serve over 20 crore users (against about 10 crore now) in the next few years via the new app.

SBI currently serves about 53 crore customers—meaning every third Indian is its customer—via 23,125 domestic and 244 foreign branches/offices.

By K Ram Kumar, Mumbai

The following article, titled "Start-up Boost" on the front page and "‘Bengaluru continues to lead India’s GCC growth’" on page 12, is an interview with Karnataka’s IT and Biotechnology Minister, Priyank M. Kharge.

Start-up Boost

Interview with Priyank M. Kharge, Karnataka’s IT and Biotechnology Minister

Priyank M. Kharge, who also serves as Karnataka’s Rural Development and Panchayat Raj Minister, stated that the State has so far funded over 1,300 start-ups through various initiatives. He noted that the government is evaluating deep-tech-related investments and discussed Karnataka’s development as a hub for Global Capability Centres (GCCs), the importance of reskilling talent, and proposed social media regulations.

Q: Karnataka has seen some momentum across GCCs, IITs, and start-ups recently. What incentives have driven this, and how does the State compare with others? Kharge explained that very few GCCs reach out specifically for incentives. Instead, success has been driven by the depth of Karnataka’s talent pool and a dedicated GCC policy that includes "Katalyst," a program for end-to-end hand-holding. Depending on the sector, the State provides a 360-degree approach, assisting with land, skilling, subsidies, or partnering with accelerators. In the last year, there were 31 GCC-related investments, and Bengaluru continues to lead India’s GCC growth, accounting for approximately 9.1 million square feet leased in Q1 2026. Disruptive companies like Mistral AI and Anthropic have chosen Bengaluru as their home.

Q: How do Karnataka’s semiconductor ambitions compare with a state like Gujarat, which is already attracting significant investments? The Minister claimed that Karnataka holds more than 60 per cent of the country’s Electronic System Design and Manufacturing (ESDM) talent pool and ranks number one in design. He argued that while the State has the talent and the right policy, it is missing out on manufacturing because the central government is "playing favourites" with other states.

Q: On start-ups, several funds have been announced recently. How much has been deployed so far, and across how many start-ups? The State has funded over 1,300 start-ups, which Kharge described as the highest world record for any government. The ELEVATE programme provides these start-ups with capital, mentorship, and access to international markets via the Global Innovation Alliance. The State has also established a special trust for women entrepreneurs and start-ups that solve problems for the government. Furthermore, the State has declared a "Deep Tech Decade," pledging more than ₹600 crore from the government and another ₹600 crore from private players. Grants under this initiative reach up to ₹1 crore, and the State is currently evaluating submissions from 937 deep-tech start-ups.

Q: What progress has been made so far in fostering development across regions beyond Bengaluru? Out of the last 31 GCCs, eight to nine have moved beyond Bengaluru. The State has introduced a ₹1,000 crore Local Economic Accelerator Programme, which treats towns as clusters. For example, the government is focusing on agritech in Kalburgi and manufacturing in the Hubballi-Belagavi-Dharwad region.

Q: Regarding the ban on social media for children under 16, what progress has been made so far? Kharge stated the goal is to regulate usage, as over 67 per cent of India’s 1.8 crore people under age 17 are exposed to inappropriate content online. He warned that an outright ban might push children to unregulated websites and emphasized that educational institutions, parents, and social media platforms must collaborate to be more responsive.

By Sanjana B, Bengaluru

‘Consumer sector sees 146 deals in Q1’

India’s consumer and retail sector recorded 146 merger and acquisition (M&A) deals valued at $1.5 billion in the March quarter, including one public market transaction. This reflects a strong recovery in deal volumes alongside a sharp moderation in values, according to a report by Grant Thornton Bharat.

While deal volumes increased 21 per cent (from 120 to 146 deals), deal values declined 59 per cent, dropping from $3.4 billion to $1.4 billion. The report indicates a continued shift toward smaller, strategic transactions in the absence of large-ticket deals.

Naveen Malpani, Partner and Consumer Industry Leader at Grant Thornton Bharat, stated that Q1 2026 reflects a "measured recovery," with investors focusing on profitability-led growth, premiumisation, and brand-led strategies. Categories such as personal care and food processing continue to attract strong interest due to evolving consumer preferences around health and convenience.

M&A Strengthened

The top five M&A and private equity (PE) deals accounted for 57 per cent of the total deal value, showing high concentration in a few large transactions despite moderate overall deal sizes. The largest deal of the quarter was Hindustan Unilever Ltd’s acquisition of a 49 per cent stake in Zywie Ventures Pvt Ltd for $90 million.

M&A activity specifically saw 40 deals valued at $358 million, driven primarily by domestic transactions and a pick-up in cross-border counts. Average deal sizes contracted, signaling a focus on consolidation-led and selective acquisitions over scale-driven investments. These activities remained concentrated in:

• Food processing
• Personal care
• FMCG

Additionally, private equity and venture capital activity remained resilient, with 105 deals valued at $1.1 billion during the quarter.

By Meenakshi Verma Ambwani, New Delhi

US open to helping UAE financially if needed

The United States is willing to assist the United Arab Emirates if the conflict in Iran negatively impacts its economic outlook, although a currency-swap line is currently considered unlikely to be necessary.

National Economic Council Director Kevin Hassett addressed reports from the Wall Street Journal regarding discussions between UAE Central Bank Governor Khaled Mohamed Balama and US Treasury Secretary Scott Bessent concerning potential financial support. Hassett emphasized that the UAE is an "incredibly valuable ally" and expressed confidence that the Treasury Secretary would provide assistance if required. However, he noted that such measures would probably not be needed, mentioning that US-Iran talks had previously been described as "moving forward very positively".

Governor Balama had reportedly raised the possibility of a currency-swap line during meetings in Washington, indicating that while the UAE has largely avoided the worst economic impacts of the war so far, financial backing might still be needed.

Similar financial interventions have occurred recently; last fall, the US signed an economic stabilisation agreement to support the Argentine peso, which assisted President Javier Milei.

These discussions come as tensions between the US and Iran have flared despite a two-week ceasefire. The seizure of an Iranian cargo ship by American forces and the closure of the Strait of Hormuz by Tehran have led to rising oil prices and falling futures. While Iran is reviewing a US peace proposal delivered via Pakistan, it has shown reluctance to participate in further talks.

By Hadriana Lowenkron, Bloomberg

A ratings tweak that could enhance bank credit

RBI PROPOSAL. A game changer. RBI’s proposal to alter rating-risk mapping can free up credit to the MSME sector.

In late 2025, as part of a draft paper put out for public comments, the Reserve Bank of India (RBI) proposed certain modified norms for scheduled commercial banks, with regard to computation of capital charge for credit risk. If implemented, these guidelines can hugely impact the Indian banking sector as well as the loan-seeking corporate sector.

Currently, RBI requires Indian banks to keep a minimum level of capital according to borrowers’ credit ratings by agencies like Crisil, ICRA, CARE etc. Such a capital charge follows the globally recognized regulatory standards developed by the Bank of International Settlements (BIS) — generally referred to as Basel Norms.

The RWA Approach

Maintaining minimum capital according to Risk Weighted Assets (RWA), in order to moderate the impact of credit risk, is a central tenet of Basel norms. Credit rating agencies denote credit risk in ordered risk categories such as AAA, AA, A, BBB, BB, B etc., wherein borrowers rated BB or lower are generally considered to ingrain high risk. The current RBI norms for computing RWA apply graded weights ranging from 20-80 per cent from AAA to A, 100 per cent to BBB, and from 150 per cent upwards to credits rated BB category or lower.

For example, if a bank lends ₹100 to a company rated BB, it is effectively considered as having lent ₹150; whereas lending to a AAA borrower is considered effectively as having lent only ₹20. Accordingly, the capital banks must maintain varies significantly. This approach forces banks to strategically choose whom they lend to, directly impacting their ability to grow loan books and affecting credit availability for perceived higher-risk categories like SMEs and MSMEs.

What’s the Big Change?

RBI’s proposal effectively shifts the rating-risk mapping by one step. Specifically, instead of the 100 per cent risk weight being applied at the BBB category, it may now apply only at the BB category. The import of this single step-change is staggering:

• Increased Liquidity: It can release a huge amount of money for lending as capital charges ease. A Crisil estimate pegs this extra amount at approximately ₹70,000 crore.
• SME Support: About 25-30 per cent of all rated companies fall in the BB category and could benefit. This move enables banks to approach the SME segment with more intent and less stigma.
• Basel Alignment: The proposed norms will bring RBI’s RWA standards into closer alignment with Basel-III, as current norms are more conservative.

Prudent Growth

While this move provides a tremendous impetus for the SME/MSME sector, it must be accompanied by stronger credit appraisal and monitoring by banks to ensure growth remains prudent. RBI’s consultative paper also includes a mapping of ratings to Probability of Default (PD), a measure intended to enhance the quality of credit ratings. Ultimately, this step-change in RWA dispensation could be a game-changer for Indian banking and the broader economy.

By Venkataraman S (Associate Dean and Associate Professor, IIM Kozhikode)

US stocks ease on tenuous US-Iran ceasefire

Wall Street eased from record highs on Monday and oil prices spiked as increasing tensions over the crucial Strait of Hormuz gave rise to concerns that the fragile US-Iran ceasefire might not hold.

All three major US stock indexes were modestly lower in early trading, putting the Nasdaq on course to snap a 13-day winning streak, its longest since January 1992. But the losses were shallow, held in check by optimism over solid first-quarter corporate earnings.

The market movements were as follows:

• The Dow Jones fell 111.32 points to 49,336.11.
• The S&P 500 fell 17.88 points to 7,108.27.
• The Nasdaq slipped 99.55 points to 24,368.49.

Reuters, New York

DMK earns ire of Cauvery delta farmers

The ruling Dravida Munnetra Kazhagam (DMK) has earned the ire of Tamil Nadu farmers, particularly in Thanjavur, Tiruchirappalli, Mayiladuthurai and Chidambaram districts for various reasons. “Farmers are feeling totally neglected. Various irregularities have been committed in some schemes,” said D Bharani, a progressive farmer in Kothangudi taluk in Mayiladuthurai district.

Slew of Problems

Bharani and a few other farmers told businessline that farmers were unable to carry out proper irrigation as desiltation of water canals had not been done. They alleged irregularities at paddy direct procurement centres (DPCs), along with problems in the transportation of paddy to warehouses, lack of proper power supply and flood relief, and delay in getting agricultural insurance. However, DMK sources, who did not wish to be identified, denied these allegations.

Alleged irregularities in paddy DPCs have left the farmers embittered. “We are losing our self-respect at the DPCs. Procurement is not done properly and is delayed most of the time,” said Bharani. V Karthik, a farmer near Orathanadu in Thanjavur district, said paddy is allowed to dry for days at the DPCs, leading to the grains losing weight, which affects their income. PM Murugesan, a farmer from Sirkazhi, claimed to have lost ₹1,000 due to under-weighing and noted that farmers' requests for CCTV cameras to check this have gone unheeded.

Transportation and Payments

Bharani alleged that the transportation of paddy is being handled by a Namakkal-based agency instead of local contractors. This agency reportedly hires local contractors at paltry sums, leading to a slow clearance of paddy from DPCs to mills. He also claimed that farmers are required to pay ₹40 to those manning the DPCs—a practice that reportedly began during the previous AIADMK regime—which, along with other payments, cuts their profit by 30 per cent.

Land and Inputs

Other grievances include:

• Kisan IDs: Pandian from Thiruvidamarudur said farmers cultivating on land leased from temples in Chidambaram are not being provided Kisan IDs.
• Fertilizer Tagging: Bharani noted that dealers force farmers to buy micronutrients when purchasing fertilizers like urea, increasing the cost from ₹266 to ₹300 per bag.
• Agricultural Insurance: Farmers like Karthik and Murugesan reported significant delays in insurance payouts, with some pending for over two years. There are also allegations that insurance claims received by the state government have been diverted for freebies.

Seed Stocks and Relief

Bharani stated that the Tamil Nadu State Seed Development Agency (Tanseda) lacks stocks of required seed varieties, forcing farmers to buy from private traders without being able to avail of Tanseda subsidies. Furthermore, Murugesan claimed the DMK government has failed to provide flood relief in the past four years, contrasting it with the previous administration's immediate response. Disappointment remains high among farmers who were hoping for relief or loan write-offs due to recent weather-related problems.

By T E Raja Simhan, Subramani Ra Mancombu, Chennai

‘Bengaluru continues to lead India’s GCC growth’

Priyank M Kharge, Karnataka’s Rural Development and Panchayat Raj, IT and Biotechnology Minister, said the State has so far funded over 1,300 start-ups through various initiatives. He said moving forward, the government is evaluating deep-tech-related investments. He also addressed Karnataka’s development as India’s GCC hub, the importance of reskilling talent, and the proposed regulations on social media.

Edited excerpts:

Karnataka has seen some momentum across GCCs, IITs, and start-ups recently. What incentives have driven this, and how does the State compare with others? Very few GCCs reach out for incentives. What worked is the depth of Karnataka’s talent pool and a dedicated GCC policy that hand-holds them. Within the policy, we have started something called the Katalyst, an end-to-end hand-holding for the GCC. Depending on the sector, whether they’re interested in land, skilling people, incentives, more subsidies, partnering with government accelerators, incubators, or fostering talent away from educational institutions, we do the whole 360-degree approach with them. That is the biggest advantage we have over others.

In the last year, we have had 31 GCC-related investments. Bengaluru continues to lead India’s GCC growth, accounting for a significant share of around 9.1 million square feet leased in Q1 2026. The most heartening thing is that almost all the new disruptive companies — be it the likes of Mistral AI or Anthropic — have chosen Bengaluru to be their home. That has been encouraging for us.

How do Karnataka’s semiconductor ambitions compare with a state like Gujarat, which is already attracting significant investments? Karnataka has more than 60 per cent of the country’s ESDM talent pool, alongside large-scale integration models. In terms of design, we are number one. While we have the talent and the right policy, we are missing out on manufacturing because of the central government’s focus on its states by playing favourites.

On start-ups, several funds have been announced recently. How much has been deployed so far, and across how many start-ups? We have funded over 1,300 start-ups, which is the highest in the world by any government. The ELEVATE programme is well-entrenched with strong frameworks for these start-ups, which sets us apart. We don’t just concentrate on capital, but also give them mentorship, access to our incubators, accelerators, and access to other countries through our Market Access Programme and Global Innovation Alliance. We also now have a special trust for women entrepreneurs, for start-ups beyond Bengaluru, and for start-ups that solve problems for the government.

We have declared the next 10 years as a ‘Deep Tech Decade’, wherein we have pledged more than ₹600 crore from the government and another ₹600 crore from private players into deep-tech companies. Here, the grant is up to ₹1 crore. In our first cohort, we have received submissions from 937 deep-tech start-ups, which we’ll evaluate soon.

What progress has been made so far in fostering development across regions beyond Bengaluru? Out of the last 31 GCCs that have come in, eight-nine have moved beyond Bengaluru. We have also brought in the ₹1,000 crore Local Economic Accelerator Programme, where we are considering these towns as a cluster. Based on the location, geography and demography, we are fostering start-ups and incubators there. For instance, in Kalburgi, we are focusing on agritech, while in Hubballi-Belagavi-Dharwad, we are focusing on manufacturing and allied sectors.

Regarding the ban on social media for children under 16, what progress has been made so far? The idea is to regulate social media usage. We have set up a committee. India has over 1.8 crore people below the age of 17. They are on social media in one form or another. More than 67 per cent are exposed to inappropriate content and images. While we are promoting digital learning across the state, we need to be careful because banning social media usage outright will push kids to unregulated websites. Educational institutions, parents and social media platforms need to join hands with us to be more responsive and responsible. Ultimately, it is about social media companies’ public policies also.

By Sanjana B, Bengaluru

Newspaper Summary 200426

 A retrospective amendment to the Income-Tax Act, 1961, clarifying the role of the Jurisdictional Assessing Officer (JAO) vis-à-vis the Faceless Assessment Officer (FAO), has triggered fresh litigation across the country. Multiple High Courts are now set to hear petitions challenging the validity of this move.

Following directions from the Supreme Court, at least three such petitions were filed this month in the Bombay, Karnataka, and Punjab & Haryana High Courts, challenging the retrospective changes made through the Finance Act. This latest round of litigation follows the top court’s direction to petitioners to bring the legislative clarification to the attention of their respective High Courts regarding disposed matters.

The Core Controversy

The dispute centers around two primary issues:

1. Who possesses the authority to issue income-tax reassessment notices?
2. The legal validity of notices issued under the post-2021 faceless regime.

While the Finance Act, 2021, introduced Section 151A to mandate "faceless" assessments for increased transparency, many notices continued to be issued by jurisdictional (physical) officers instead of the centralized faceless unit. Taxpayers challenged these notices, arguing that JAO assessments lacked legal authority under the new regime. High Courts have issued conflicting rulings on whether this constitutes a "curable procedural lapse" or a "fundamental jurisdictional error" that renders a tax demand void.

Legislative "Reset"

To clear the air, the Finance Act now specifies that the Assessing Officer for the purposes of Section 148 and Section 148A "shall mean and shall always be deemed to have meant Assessing Officer other than the National Faceless Assessment Centre or any of its assessment units".

Corresponding amendments have been made to the Income-Tax Act, 1961 (effective retrospectively from April 1, 2021) and the Income-Tax Act, 2025 (effective from April 1, 2026). According to the explanatory memorandum for the Finance Bill, 2026, these changes were intended to achieve certainty and clarity while minimizing litigation. The government is effectively legitimizing past actions by local jurisdictional officers that were previously being struck down by courts.

Expert Concerns and Future Outlook

Experts have raised significant concerns regarding this move:

• Legislative Overreach: Shaily Gupta, Partner at Khaitan & Co, described it as a "classic case of the Legislature trying to 'win' a pending legal battle by changing the rules mid-game," suggesting it deepens uncertainty.
• Constitutional Scrutiny: Ashish Agrawal, Partner at Dhruva Advisors, noted that the core issue going forward will be whether such retrospective legislative validation regarding jurisdiction can withstand constitutional scrutiny.
• Step-by-Step Process: Richa Sawhney, Partner–Tax at Grant Thornton Bharat, observed that by sending the matter back to High Courts, the Supreme Court has ensured the issue is examined through the proper legal process while allowing taxpayers to continue their challenges.

The controversy is expected to enter an extended phase of litigation as multiple High Courts independently examine the validity of the amendment.

How content creators are making curiosity ‘cool’

By Chitra Narayanan

Turn to Instagram and scroll through the inevitable food, beauty and entertainment reels, and suddenly, the algorithm seems to be shifting. Popping up more and more frequently are fun quizzes and trivia tests by both global and Indian creators. For instance, handles like @thedropapinshow and @bradythetutor test your knowledge about countries in the most entertaining way. Closer home, there are handles like @AreyPataHai, run by Mohit Mamoria and Nipun Jain, @abhiandniyu, run by Abhiraj Rajadhyaksha and Niyati Mavinkurve, and @kk.creates, run by Kavya Karnatac, that flood you with interesting facts and trivia.

Knowledge is showing up in new formats, and curiosity has become very cool thanks to smart creators on the internet. Even niche areas are covered, such as @2Bunkars, where saree retailers Nasir Iqbal and Kasif Iqbal ask questions about the six-yard drape. Ace quizzer Joy Bhattacharjya agrees that social media has given a fillip to quizzing by reaching new, focused audiences who might enjoy trivia sessions on specific topics like the IPL, Harry Potter, or BTS.

Brand consultant Giraj Sharma points out that quizzing is growing in both the digital and physical worlds. Trivia game nights, a very American phenomenon, are now seen at places like Monkey Bar and Social as a way of boosting footfalls and engagement.

A Successful Accident

Mohit Mamoria of @AreyPataHai is currently riding high after his trivia-packed book, ***What the… What?!***, became a No. 1 bestseller through pre-orders alone. Mamoria notes that quizzing has become a new group activity for friends and families who are tired of just going to movies or stand-up comedy shows.

The creation of @AreyPataHai was entirely accidental; Mamoria and Jain started it during a lean patch at their content agency. Puzzling and quizzing had been their "love language" since they first started chatting online, and after they put a camera in front of themselves, they never looked back. They are now touring the country with a 90-minute "standup-trivia" special, which frequently sees sold-out shows.

Monetisation and Brand Value

Trivia content can be successfully monetised. Mamoria and Jain are supported by memberships, revenue from their book, and an upcoming game project. Interactive tools like story stickers and lead-generation funnels help these creators boost engagement and gain sticky followers.

Brands are increasingly reaching out to "quizfluencers" because it lifts a brand's intellectual quotient and provides a credible vehicle for embedding brand content subtly. As Sharma notes, quizzing makes a brand appeal to a target audience's cognitive quotient while serving as a perfect platform for building brand identity.

WPI effect on new GDP series

By R Gopalan and MC Singhi

The new national accounts, or GDP, series with a 2022-23 base year raises the question of whether the deflators being used are accurate. Inaccuracies on account of the use of the Wholesale Price Index (WPI) with an outdated base year seem to persist in the new series.

The Deflator Dilemma

The new NAS series 2022-23 uses double deflators, moving away from the single deflators used in the NAS 2011-12 series. However, the issue of appropriate deflators persists, principally due to the "WPI effect". WPI is used as the deflator for over 50 per cent of the NAS value added. As a commodity index with a 2011-12 base, it has a fixed basket and base, which causes it to lose its representative character as it becomes dated.

While studies on the Index of Industrial Production (IIP) have shown a downward bias in growth rates once a series becomes dated, similar studies for the WPI are unavailable because alternative measures for comparison do not exist. Experts suggest such index series should be revised every five years to remain effective.

WPI Trends and Representativeness

An analysis of two approaches considers the current representativeness of the WPI:

1. Comparison with GDP Deflator: From 2015-16 to 2020-21—a period covering demonetization, GST reforms, and the pandemic—the WPI for all commodities remained moderate. During this time, the GDP deflator generally stayed between the WPI and the Consumer Price Index (CPI). However, in 2017-18, the GDP deflator was higher than both. This suggests the deflator is influenced more by WPI for primary articles and intermediates rather than final products, potentially leading to under-reporting of inflation for capital and consumer goods.
2. Inflation Range Analysis: The number of commodities with inflation below 2 per cent increased to 447 in 2025-26 (April-February), representing a weight of approximately 63 per cent. This indicates that the commodity composition is shifting away from being representative, often due to declining response rates or a repeat of previous quotations.

Inflation Dynamics

The increasing number of commodities showing negative inflation may largely be due to products that have ceased to report. During the April-February 2025-26 period, 526 commodities (93% weight) had inflation up to 2 per cent, and 277 commodities (over 53% weight) had negative or zero inflation. This further indicates that the WPI has become less representative as a key deflator.

Consequently, the real GDP growth was only marginally lower than the nominal GDP growth, and the deflator fell to a historic low of less than 1 per cent.

The Path Forward

The authors argue that a new series of WPI should be operationalized quickly and eventually replaced by a comprehensive Producer Price Index (PPI). This shift would address the appropriateness of commodities and deflators. Until then, the new NAS series will continue to be not fully reflective of actual economic growth.

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Data Highlights (Table 1): Inflation & GDP Deflator Trends (Selected years, in per cent)

Year	WPI (All)	CPI	GDP Deflator	GDP Growth
2015-16	-3.69	4.88	2.28	7.41
2020-21	1.31	6.15	4.81	3.87
2022-23	9.40	6.65	5.90	9.69
2025-26*	2.13	1.94	0.97	7.57

*April-February data

Process deficit

Delimitation Bill fell in the absence of consultation April 20, 2026

The defeat of the Constitution (One Hundred and Thirty-First Amendment) Bill, 2026 in the Lok Sabha raises questions about why a special session of Parliament was convened in the midst of Assembly elections to hastily pass a highly contentious Constitutional amendment. Given the sensitivity of the issue, it should’ve been obvious that such a Bill would not pass the Lok Sabha amidst elections in a couple of the very States that would be undercut by its provisions.

Yet, political calculations seem to have been behind the move, as seen by how Prime Minister Narendra Modi immediately launched into the Opposition for what he called “female foeticide”. The fallen Bill was a radical departure from the existing Constitutional scheme freezing the number of seats in the Lok Sabha and State Assemblies based on the 1971 census. Currently, no increase in the total number of seats can occur until the first census after 2026 is published.

Key Proposals of the Bill

The 2026 Bill proposed several significant changes:

• Omitting the Seat Freeze: It sought to omit provisions in Articles 82 and 170 that enforce the current seat freeze.
• Redefining "Population": It proposed using "population figures of the latest published census," which would have allowed the government to use 2011 census data to increase seats immediately.
• Expansion of Seats: It proposed expanding the Lok Sabha to 850 seats (815 from States and 35 from Union Territories).
• Accelerating Women's Reservation: It sought to amend the Nari Shakti Vandan Adhiniyam to de-link the 33 per cent women's reservation from the requirement of a post-2026 census, potentially allowing implementation before 2029.

Constitutional Principles and Historical Context

While the principle of “one person, one vote, one value” (Article 81(2)(a)) justifies seat expansion based on population, successive governments—including the one led by Atal Bihari Vajpayee—maintained the seat freeze to protect the representation of specific regions. This freeze prevented the representation of five southern States from falling from 24.3 per cent to 20.7 per cent, while stopping a 5 per cent increase in northern State representation.

A Need for Consensus

The government's attempt to accelerate implementation by tethering women’s reservation to the 2011 Census failed to address the anxieties of southern States. This process must be a "masterclass in trust-building" and cannot be achieved by forcing amendments during an active election cycle.

For the government, the defeat of this Bill represents an unusual setback. It highlights the limits of pursuing major reforms without adequate consultation and consensus-building. The episode underscores the importance of dialogue and institutional integrity in advancing transformative legislation; future efforts must be based on a wider political consensus.

When the grid becomes an all-knowing data system

By N Nagaraj

The transition to renewable energy is remaking India’s power grid at a level that generation capacity figures do not capture. Integrating variable solar and wind power at scale requires continuous, real-time data exchange between generation sources, storage systems and grid operators. Battery storage must respond to grid signals within milliseconds.

Demand response, peer-to-peer energy trading and distributed generation require the grid to function as an information system. Each of these capabilities connects what engineers call operational technology to information networks. The equipment that manages voltage, frequency and power flow, previously isolated from external networks by design, is now networked by operational requirement. Every new connection extends the boundary of what is reachable from outside.

The draft National Electricity Policy (NEP), 2026, addresses this shift through two contrasting mandates. Section 14 proposes that data should be physically located within India, explicitly including battery management systems. Section 13 requires the same sectoral entities to share their operational and market data under regulatory safeguards to enable AI applications, analytics and innovation.

Territorial control over the data layer is the objective of one; circulation of that data is the objective of the other. The India Energy Stack, named in Section 7 as a foundational framework for interoperable energy systems and financial settlements, is the architecture intended to hold both requirements together.

Embedded Security

Battery management systems illustrate how the security logic works at the component level. A battery management system continuously monitors cell behaviour: charge and discharge rates, thermal conditions, capacity degradation and grid response characteristics. For a grid-scale installation, this data constitutes a detailed operational map. Under NEP 2026, the security requirement is embedded in technical specification: operational intelligence on grid behaviour under stress cannot be routed to servers outside Indian control.

The supervisory control and data acquisition (SCADA) systems running India’s load despatch centres present a structurally difficult problem. These are continuous operational systems managing live grid infrastructure, sourced from vendors including ABB, Siemens and GE Vernova. NEP 2026 proposes that the Grid Controller of India Limited and State load despatch centres endeavour to transition to indigenously developed systems by 2030.

This transition requires replacing live control systems on infrastructure that cannot be taken offline, against a four-year timeline, with a domestic software and hardware supply chain that does not yet exist at the required scale or reliability. The policy’s governing logic remains clear: open at the data layer, sovereign at the infrastructure layer.