Canara Bank profit up 72% to ₹4,856 cr on credit growth
AIMING BIG. Management has guided for 11-12% growth in global advances in FY27
Our Bureau Bengaluru
State-owned Canara Bank on Monday reported a 2.19 per cent rise in its standalone net profit at ₹4,856 crore for the first quarter ended June 30, 2026, supported by double-digit credit growth and steady improvement in asset quality.
Net interest income (NII) grew 13.39 per cent y-o-y to ₹10,215 crore, while total income grew 14.16 per cent to ₹39,684 crore.
The lender’s global business grew 10.82 per cent y-o-y to ₹25,05,066 crore in Q1FY27. Net advances jumped 17.97 per cent to ₹11,93,881 crore, driven primarily by retail, agriculture, and MSME (RAM) credit, which surged 21.2 per cent y-o-y.
Within retail, housing loans grew 17.85 per cent to ₹1,29,036 crore, and vehicle loans rose 26.34 per cent. Total global deposits increased 11.63 per cent y-o-y to ₹16,11,685 crore, with domestic deposits increasing 11.23 per cent to ₹14,73,447 crore.
Fee income for the bank improved 5.35 per cent to ₹1,542 crore, while operating profit rose marginally by 0.96 per cent to ₹8,636 crore.
ASSET QUALITY
The bank’s asset quality indicators strengthened across key metrics. Gross non-performing assets (GNPA) improved by 27 basis points quarter-on-quarter to 1.57 per cent as of June 2026, down from 1.84 per cent in March 2026 and 2.69 per cent in June 2025.
Net NPA fell by 7 basis points sequentially to 0.36 per cent from 0.43 per cent in March 2026 and fell from 0.63 per cent a year ago.
The provision coverage ratio (PCR) improved to 94.76 per cent from 94.21 per cent as of March 2026.
CAPITAL POSITION
The bank maintained a comfortable capital base, with its capital to risk-weighted assets ratio (CRAR) standing at 17.17 per cent, of which common equity tier-1 (CET1) was 14.29 per cent.
Slippages remained low at 0.6 per cent, while credit costs improved by 23 basis points year-on-year to 0.49 per cent.
The bank is also projecting the FCNR (B) and overseas borrowing window for the first quarter to exceed $2.3-2.5 billion, said Managing Director and Chief Executive Officer Brajesh Kumar Singh.
The management has guided for an 11-12 per cent growth in global advances and 9-10 per cent growth in deposits for the full year, while expressing confidence in achieving milestones on its loan growth target based on recent momentum.
Scorecard
| Metric | Q1FY26 | Q1FY27 | % Change |
|---|---|---|---|
| Net profit (₹ crore) | 4,732 | 4,856 | 2.19 |
| NII (quarterly) (%) | 2.55 | 3.02 | — |
| Net interest income (₹ crore) | 9,009 | 10,215 | 13.39 |
| |
China’s industrial profit sees weakest growth
Bloomberg News
China’s industry saw profit gains slow in June, adding to evidence of an uneven recovery for companies across the world’s second-largest economy.
Industrial profits rose 15.1 per cent last month from a year earlier, the weakest increase this year and down from 21.1 per cent in May, according to data published by the National Bureau of Statistics on Monday. For the first half of the year, profits at firms grew by 18.7 per cent, compared with a Bloomberg Economics forecast of 21.6 per cent.
China ended its record deflationary run last quarter even as price increases remain largely confined to oil and other commodities such as steel and copper. Though the cost of goods at the factory gate rose in June at the fastest in almost four years, producer prices had their first drop since July 2025 on a month-on-month basis, in a sign inflationary momentum has waned.
DEMAND FOR TECH GOODS
The global build-out of AI and other infrastructure has fuelled demand for China’s advanced manufactured goods, while disruptions to energy markets caused by the conflict in the Middle East have lifted commodity costs.
But slumping domestic investment and sluggish household spending could be more of a hurdle for profitability in the months ahead, especially in the absence of stronger stimulus to boost demand.
While industrial profits rose “relatively rapidly” in the first half, “the external environment remains complex and uncertain, international commodity prices continue to fluctuate unpredictably, and industrial enterprises still face challenges including weak market demand and tight cash flow,” Yu Weining, an NBS analyst, said in a statement published alongside the data release.
Looking ahead, the government will continue to “cultivate and strengthen” emerging and future industries, while also using technology to transform traditional sectors, to enable a smooth transition between the old and new growth drivers, Yu said.
The yield on the government’s 10-year debt was steady at 1.72 per cent after the data publication. With traders expecting looser monetary policy ahead, China’s 30-year bond futures rose as much as 0.2 per cent to the highest since November, extending their gains from last week.
Coal India net rises marginally to ₹8,850 crore, total income up 8%
Our Bureau Kolkata
State-run coal behemoth Coal India on Monday reported a marginal 0.7 per cent year-on-year increase in consolidated net profit at ₹8,849.81 crore for the first quarter this fiscal, with total income and total expenditure rising around 8 per cent each.
The coal miner had reported a net profit of ₹8,787.84 crore in the first quarter of the last fiscal year.
Backed by a 7.77 per cent increase in its overall operations, the company’s total income in Q1FY27 witnessed an increase of 8.44 per cent y-o-y at ₹44,575.06 crore, compared with ₹41,105.06 crore in the same period last year.
CIL’s revenue from operations in the period under review was ₹46,254.48 crore, up 28.72 per cent from ₹35,933.21 crore in the year-ago period, even as it had to take an exchange-rate impact on account of its US dollar-linked exchange filing.
Overall average realisation per tonne of coal for the first quarter stood at ₹2,276.62 compared to ₹2,168.10 in the same period last year, marking a 5 per cent y-o-y growth. In the first quarter, the fuel supply agreement (FSA) sales volume was 1.35 per cent lower than a year ago at 168.07 million tonnes and also a 1.32 per cent rise in per-tonne realisation in the period.
E-AUCTION
For the e-auction in Q1FY27, the Maharatna company saw a 3.38 per cent increase in quantity at 26.52 million tonnes, and per-tonne realisation improved by 5.77 per cent to ₹3,085.44.
Total expenses witnessed 11.89 per cent y-o-y increase at ₹36,810.23 crore against ₹32,903.19 crore in the same period last fiscal. Cost of materials consumed, however, increased by 27 per cent, while there was a significant increase in oil and lubricant expenses.
In the first quarter this fiscal, EBITDA remained flat at ₹14,536.49 crore compared to ₹14,348.68 crore in the corresponding period last fiscal. EBITDA margin fell 200 points y-o-y at 31 per cent. The board of CIL, at its meeting, declared an interim dividend of ₹5.2 per share for FY27.
Scorecard
| Metric | Q1FY26 | Q1FY27 | % change (y-o-y) |
|---|---|---|---|
| Net profit (₹ crore) | 8,787.84 | 8,849.81 | 0.71 |
| Revenue from operations | 35,933.21 | 46,254.48 | 28.72 |
| Total income | 41,105.06 | 44,575.06 | 8.44 |
| Total expenses | 32,903.19 | 36,810.23 | 11.89 |
Zepto in talks with anchor investors ahead of IPO
Jyoti Banthia Mumbai
Quick commerce firm Zepto has begun discussions with several potential anchor investors for its upcoming initial public offering (IPO), targeting a valuation of roughly $8 billion to $9 billion, according to people familiar with the matter.
The company, which competes with Blinkit and Swiggy Instamart, is expected to price its anchor book at a pre-money valuation of about ₹24,000 crore ($2.8 billion). The company is looking at a fresh issue of ₹3,000 crore and a small offer for sale (OFS) component.
The indicative price works out to roughly ₹18.76 a share, according to the deal terms being discussed with private investors.
The move marks a sharp reset in Zepto’s valuation expectations from its last private funding round. The company was valued at $7 billion when it raised $450 million from investors, including US Calpers, in October 2025.
Zepto had filed its DRHP last month, which had proposed an offer for sale (OFS) of up to ₹2,500 crore and an offer for subscription of up to 410 million shares by existing investors. Current investors include Nexus Ventures, Contrary, Glade Brook Capital, and entities linked to Kaiser Permanente among the selling shareholders.
VALUATION RESET
The revised valuation reflects a more cautious pricing environment in the public market, where investors are increasingly rewarding companies with proven paths to profitability and sustainable business models over expensive private market multiples.
Zepto recently received the Securities and Exchange Board of India’s approval for its IPO in April and has since been working towards its market debut.
The quick commerce sector continues to be a high-intensity battleground, where it competes against Blinkit, backed by Eternal, and Swiggy Instamart, backed by Swiggy.
The sector continues to see rapid growth, but listed players have been under pressure to balance expansion with profitability, exercising investor expectations for new-age technology companies.
An email sent to Zepto for a comment did not elicit a response.
US' new tariff needn't rattle exporters
NOT A HARD BLOW. Section 301 tariff on many of India’s principal competitors is either higher or similar. Our competitiveness hence may not get affected.
AJAY SAHAI
The US' decision to impose an additional 10 per cent tariff on most imports from India has understandably created concern among exporters. Yet, while the measure is undoubtedly a setback, it should not be viewed as a blow to India's export prospects. Compared with several competing countries, India could even emerge with fresh opportunities in a number of sectors.
It is important to note that this is not a country-specific penalty against India, nor is it a measure against any unfair manufacturing practices or forced labour. It is a broad-based tax under Section 301 following its assessment of how trading partners prohibit and prevent the import of goods produced through forced labour. India has been placed in the lower 10 per cent tariff category after taking policy measures to improve the regulatory framework in this area, while several competing countries have been subjected to a higher tariff of 12.5 per cent.
COMMERCIAL REALITY
For exporters, however, the commercial reality is straightforward. The new levy will be an additional cost of 10 per cent on existing US customs duty. Thus, if an Indian product currently attracts a normal US import duty of 5 per cent, the new tariff will raise it to 15 per cent, and the total duty incidence to around 15 per cent. This could increase the landed cost of Indian products in the US market and may make price negotiations more difficult for exporters. Unless absorbed by the US importer, buyers are likely to seek price concessions from Indian contracts, or ask exporters to share part of the higher duties. At a time when firms operating on narrow profit margins will feel the heat, the US move could hurt sectors supplying specialised or high-value products.
At the same time, looking only at the additional 10 per cent tariff can create a misleading picture. Many other countries in the US crosshairs are in the same boat, and some of those competitors face lower, similar or even higher duties.
Many of India's principal competitors — such as Bangladesh, Cambodia, Indonesia, Malaysia, Pakistan, Sri Lanka, Mexico, Canada, the UK and several EU nations — are subject to the same 10 per cent tariff. This means that in sectors such as textiles, garments, leather products and several labour-intensive industries, Indian exporters do not become less competitive merely because of the new tariff. Buyers comparing Indian products with those from Bangladesh or Sri Lanka, for example, will find both facing similar tariff treatment.
Interestingly, India may actually gain a modest competitive advantage over several important exporting nations. Vietnam, Thailand, China, Türkiye, Australia, New Zealand, Saudi Arabia and the UAE have all been placed in the higher 12.5 per cent tariff category. Although the difference is only 2.5 per cent, it could become significant in highly price-sensitive industries. US buyers looking to diversify away from suppliers facing higher tariffs may increasingly consider Indian manufacturers, provided they can offer competitive prices, consistent quality, reliable delivery schedules and adequate production capacity.
The picture becomes less favourable when India competes with developed economies. The European Union and Taiwan have been granted a much more favourable capped duty arrangement, under which the combined customs duty generally does not exceed 10 per cent. Japan, South Korea and Switzerland also enjoy a similar arrangement with a cap of 12.5 per cent. Consequently, Indian exporters may find themselves at a slight disadvantage in machinery, electrical equipment, engineering goods, chemicals, medical devices, furniture and other technology-intensive sectors where European and East Asian suppliers are India’s principal competitors. This underlines an important lesson: there is no single answer to the impact of the tariff. Every product has to be examined individually after comparing the tariff treatment applicable to competing supplier countries.
The impact will also vary considerably across sectors. The gems and jewellery industry, where competition is intense and margins are often low, may face considerable pressure. Textiles and garments, on the other hand, may find the impact cushioned because most competing South Asian suppliers face the same tariff. However, the proposed US tariff quota rate for Bangladesh, Cambodia, and textile inputs could potentially provide Bangladesh, Cambodia, Indonesia and Malaysia with an additional advantage if implemented favourably.
Pharmaceuticals appear comparatively insulated because several pharmaceutical products and ingredients fall within the exemption framework, although exporters should verify product-specific classification rather than assuming blanket exemptions. Similarly, certain agricultural commodities, fertiliser inputs, seeds and essential products have also been kept outside the scope of the new tariff.
GREATER SCRUTINY
Another consequence of the new measure is likely to be greater scrutiny of supply chains by American buyers. Exporters should therefore strengthen documentation relating to labour practices, wages, employment conditions, supplier declarations, raw material sourcing, social audits and traceability. Businesses with transparent supply chains and strong environmental, social and governance practices are likely to inspire greater confidence among overseas buyers.
The immediate response of exporters should be to obtain confirmation of the precise US tariff classification applicable to their products and verify whether any exclusions are available. They should calculate the total landed duty, taking into account the normal customs duty, the Section 301 tariff, any applicable Section 232 duties, and other trade remedies wherever relevant.
Existing export contracts should also be reviewed carefully to determine who bears the additional duty burden and whether price revisions are permissible under the contract. Instead of immediately offering a 10 per cent reduction in prices, exporters would be better advised to negotiate balanced commercial solutions such as partial cost sharing, larger order commitments, improved logistics, revised payment terms or longer-term supply arrangements. Most importantly, exporters should assess every product on a tariff-line-by-tariff-line basis and compare their position with the principal competing countries rather than drawing broad conclusions.
The new US tariff undoubtedly increases the landed cost of Indian products. Businesses operating on margins of only 3-8 per cent will find it difficult to absorb an additional 10 per cent tariff without affecting profitability. Nevertheless, the overall picture is more balanced than it appears at first glance.
The writer is Director General and CEO, FIEO.
Exporters seek govt intervention as W. Asia crisis disrupts shipping
GROWING CONCERN. FIEO flags higher ocean vessel mail vouchers, surging freight costs; carriers roll out new surcharges
Amiti Sen New Delhi
Escalating shipping disruptions triggered by the continuing crisis in West Asia have prompted Indian exporters to seek urgent government intervention, amid warnings that soaring freight rates, fewer direct calls by mother vessels at Indian ports, and increasing dependency on foreign transshipment hubs are hurting India's export competitiveness.
Last week, the Federation of Indian Export Organisations (FIEO) sought an appointment with the Commerce Ministry to discuss immediate and long-term measures to address the disruptions.
KEY DEMANDS
"We want to take up with the Shipping Ministry the escalation in shipping related customer schedules, portlers and look for some solutions," FIEO DG Ajay Sahai told businessline.
Key demands include rationalisation and greater transparency in freight and contingency charges, restoration of more direct mother vessel calls at Indian ports, more container availability, vessel capacity and schedule reliability, and the creation of contingency mechanisms to protect exporters during future geopolitical crises.
The situation has been further reinforced by continued hikes by global shipping lines, the latest being French carrier CMA CGM's announcement of a fresh Peak Season Surcharge (PSS), effective August 15, on cargo originating from India, Pakistan, Sri Lanka, the Middle East Gulf and Red Sea ports and bound for the US East Coast, Gulf Coast and inland destinations.
FRESH SURCHARGES
The surcharge has been fixed at $3,000 per container across major categories.
In its letter, FIEO highlighted that the West Asia crisis had disrupted shipping networks, resulting in fewer direct calls by mainline vessels at Indian ports and forcing a larger share of export cargo to be routed through overseas transshipment hubs such as Colombo, Singapore and Jebel Ali.
The increased reliance on transshipment not only adds transit time, cargo handling costs, and overall logistics expenses, but irregular sailing schedules and container shortages have added to the uncertainty.
The continuous rise in freight charges is taking place as shipping lines are re-routing services and adjusting capacity in response to security concerns in the Red Sea.
"These developments are coming at a particularly critical time when India is pursuing an aggressive export-led growth strategy and has set its sights on achieving merchandise and services exports of $2 trillion by 2030. Reliable, efficient and cost-competitive maritime connectivity is vital for achieving this and protecting this significant national objective," the letter noted.
FIEO also urged the government to review the port shipping lines and port authorities to ensure direct mainline connectivity, improve schedule reliability, and strengthen domestic port infrastructure against future geopolitical disruptions.
It said timely intervention would help keep costs down and safeguard the competitiveness of Indian exports.
Billionaire taxpayers surged more than 4 times in last 5 years
Shishir Sinha New Delhi
The number of billionaires in India has surged over four times in the last five years, according to data presented along with a written response by the Finance Ministry in the Lok Sabha on Monday. However, the government used various indicators to explain that income inequality in the country was down.
According to data, part of the response by the Minister of State in the Finance Ministry Pankaj Chaudhary, the number of individuals reporting a total income of ₹100 crore or more in the income-tax returns filed for assessment year 2021-22 was 142, which surged to 576 in 2025-26 (till July 15, 2026), showing a growth of over 300 per cent in five years.
“Wealth Tax, 1957 was abolished with effect from April 1, 2016, and the last data on aggregate wealth of taxpayers,” he said.
He emphasized that the government had taken several measures to reduce income and wealth inequality, promote broad-based employment generation and inclusive economic growth, which include a progressive Income-tax structure and increased spending on food, health, education, housing and social security.
INEQUALITY METRICS
He highlighted variations in indicators showing a reduction in income inequality. As per the latest Household Consumption Expenditure Survey 2023-24, the Gini Coefficient for rural and urban areas is 0.237 and 0.284, respectively, down from 0.266 and 0.314 in 2022-23. “This shows that the rural-urban gap is narrowing,” Chaudhary said.
The Gini Coefficient is one of the most widely used measures of income inequality. The score ranges from 0 to 1, where 0 represents complete equality and 1 represents total inequality.
Further, the Annual Periodic Labour Force Survey reports showed that labour markets have recovered beyond pre-Covid levels in urban and rural areas. The unemployment rate for individuals aged 15 and above fell to 3.1 per cent from 6.3 per cent in 2017-18.
IPOs of Indo-MIM, Xtranet, Lohia witness strong response
Our Bureau Mumbai
The three initial public offerings — Indo-MIM, Xtranet and Lohia Corp — that closed on Monday saw heavy subscription, especially the former attracting all categories of investors.
The Indo-MIM Ltd IPO closed with overall subscription of 72.34 times. The qualified institutional buyer (QIB) category drove the surge, subscribing a massive 204.13 times its allotted portion.
Domestic financial institutions, including banks, financial institutions and insurance companies, were the major bidders in the ₹6,000-crore QIB segment, bidding for 143.96 crore shares while 69.86 crore shares came from foreign institutional investors.
The non-institutional investors category was subscribed 30.63 times and overall retail investors 6.67 times. The employee reservation portion closed at 9.44 times.
The public issue came out with a price band of ₹461-485 per share. The IPO comprised a fresh issue of ₹500 crore and an offer-for-sale (OFS) of approximately ₹5,312 crore.
LOHIA CORP
The Lohia Corp Ltd IPO closed was subscribed 13.25 times.
The QIB category was the standout performer, subscribing 44.02 times, followed by non-institutional investors and retail investors at 25.53 times and 2.77 times respectively. The employee reservation portion was subscribed 1.77 times.
The IPO, priced at ₹404-425 per share, is entirely an offer for sale of 2.59 crore shares. Lohia Corp, a global manufacturer of machinery with a 40.7 per cent market share in 2025, reported revenue of ₹1,717 crore in FY26 with EBITDA margins of 18.6 per cent.
XTRANET TECH
Xtranet Technologies Ltd’s ₹300-crore IPO witnessed an overall subscription of 12.24 times.
The Non-Institutional Investor (NII) category was the standout, subscribed 26.63 times, followed by the large NII bucket (bids above ₹10 lakh) and the smaller NII bucket (bids above ₹2 lakh) clocking approximately 26.7 and 26.4 times respectively.
Xtranet Technologies Limited, a specialized IT solutions provider, launched its IPO in a price band of ₹120 to ₹127. Retail investors subscribed 11.88 times and the QIB category 7.13 times.
The Bhopal-based integrated IT solutions provider, incorporated in 2004, will price its fresh issue at approximately ₹127. Net proceeds are earmarked for primary working capital requirements (₹102 crore), repayment of debt (₹35 crore) and capital expenditure (₹8.5 crore).
IPOs: Who bids (Subscription times)
| Company | QIB | Non-institutional | Retail individual | Employee | Total |
|---|---|---|---|---|---|
| Indo-MIM | 204.13 | 30.63 | 6.67 | 9.44 | 72.34 |
| Lohia Corp | 44.02 | 25.53 | 2.77 | 1.77 | 13.25 |
| Xtranet Technologies | 7.13 | 26.63 | 11.88 | — | 12.24 |
Why are Forward Deployment Engineers in demand?
Forward Deployment Engineers work directly with clients to integrate and customize the software to their own needs.
bl.explainer Rohan Das
As AI increasingly becomes central to the building of software, work IT roles are set to evolve. Forward Deployment Engineer (FDE) is one such function that has found a second wind recently, with multiple global and Indian tech firms ramping up hiring for the role. But what exactly do these engineers do?
What are Forward Deployment Engineers?
FDEs are essentially software engineers with the mindset of a consultant, working directly with clients to integrate and customize software to meet their specific needs. They often have a degree of technical expertise to deploy complex and take-out-of-the-box software solutions within the client’s ecosystem, while also continually improving them based on real-world use.
What did FDEs do before the introduction of AI?
In the pre-AI era, FDEs, who were also referred to as professional services or implementation teams, had a straightforward job. Broadly speaking, when clients buy software like SAP, Oracle NetSuite, Microsoft Dynamics or Tally, these engineers would handhold them to set up the tools on their own systems. This meant configuring them for their users, ensuring they had the right applications and workflows while also training employees to use them and fix any issues after deployment.
How has AI changed their role?
Unlike traditional software, however, AI products rarely work well out of the box. As Ashwin Yardi, Chief Strategy and Innovation, Consulting, Deloitte South Asia, puts it, in the traditional software era, engineers usually worked against relatively fixed requirements, while AI tools today are more probabilistic in nature.
This means outputs can vary depending on the prompts, the underlying models can change and the performance that works well in one company while failing for another. As a result, FDEs have to constantly work on updating the AI solutions based on user feedback and the specific business need, more so than traditional software.
Why are AI companies on the hunt for FDEs?
Enterprise software vendors like SAP or Oracle made tools while engineers in IT service firms integrated them into client systems. However, AI start-ups like OpenAI and Anthropic are looking for their own FDEs that work in client environments. They expect the feedback from these deployments to help them in improving the core product for future iterations.
OpenAI launched the Deployment Company, a $4 billion business unit that works exclusively on staffing configurations and enterprises with FDEs. Anthropic also announced an AI services company where FDEs will work with customers to build custom solutions. AWS, Google Cloud, and Microsoft have also announced intentions to expand FDE hiring in response to customer demand.
How will this trend impact the business of IT service companies?
Will they also have to hire FDEs? The industry opinion remains mixed. While some have flagged significant overlap, others have also suggested that the scale of large enterprise AI projects cannot be met by FDEs from model builders alone as they would require specialist service firms.
Be that as it may, many service firms have also started to hire in excess to ramp up FDE teams. Tata Consultancy Services is building a unit of 5,000 forward-deployed engineers. Cognizant plans to scale to 5,000 Frontier Certified engineers and 10,000 Frontier Business Operators to help deploy AI in enterprise environments. Mid-tier IT firm Coforge has also announced plans to scale its FDE team to 100 engineers.
What are the skills companies are looking for in FDEs?
FDEs are usually expected to have a mix of strong technical skills alongside a deep understanding of the client’s business. Beyond just writing code, FDEs must know how various enterprise systems work together with the AI models while also being able to communicate with customers and understand their business challenges.
According to Sanchit Gogia, Founder & CEO of Greyhound Research, unlike traditional software solutions that build products, FDEs start with the customer's problem, tailor the AI solutions to their needs and decide which of the customisations need to eventually be part of the core product.
US-Saudi nuclear agreement
The Guardian
Even as he threatened to unleash a nuclear fuel war in part as preventing Iran from gaining a nuclear weapon, Donald Trump opened the door to proliferation in the region on Wednesday. The US announced that it had signed a deal with Riyadh which would potentially allow the kingdom to enrich uranium in future and to avoid the fullest inspection rights for the international watchdog.
Experts had long warned that a civilian nuclear programme could create a path towards a nuclear-armed Riyadh. Mohammed bin Salman, the Saudi crown prince, has said that if Iran ever gets a nuclear weapon, “we will have to get one”.
Concerns are magnified by the agreement’s lack of safeguards. Critics had previously argued that the “gold standard” was the UAE’s agreement to permanently forgo enrichment and accept full monitoring by the IAEA.
LONDON, JULY 26
Japan’s Arctic Policy
THE YOMIURI SHIMBUN
The Arctic is a treasure trove of natural resources. Leveraging the Arctic Sea could also shorten shipping routes connecting Japan with Europe and the Middle East. In addition, other countries such as China are already active in securing their interests.
The government has taken steps to strengthen its policies regarding the Arctic. Prime Minister Fumio Kishida has directed that there be a revision of the basic policy formulated in 2015, regarding resource development, the construction of a base for observations or the establishment of international rules. A revised policy will be compiled within the next fiscal year. Given the current circumstances, a revision is legitimate.
TOKYO, JULY 27
A nude deal with a rider The US thrusts Abraham Accords on Saudi Arabia
Sridhar Krishnaswami
Less than a day after the announcement of a US-Saudi Arabia civilian nuclear agreement, President Donald Trump dropped a bombshell making many wonder if there is an accord at all. "The agreement... (there will be no enrichment of material!)" which pertains only to non-military use... will be approved, but is totally subject to a rider, the President tweeted on his recently respected and successful social media platform, Truth Social. In the absence of any available text, it is unclear if this is a rider or a part of the accord.
It is no secret that Washington and Riyadh have been discussing a civilian nuclear deal for some time, but Saudi Arabia has been one of the staunch supporters of the Palestinian cause, pushing for a meaningful two-state solution and holding off on joining a part of the Abraham Accords that would have opened the door for the formal recognition of the Jewish state.
And in the last two years or more what complicated the nuclear deal was the October 7, 2023, terrorist attack on Israel and the savage response of Tel Aviv in the Gaza in the name of wiping out the Hamas. The scale of death and destruction and the lack of retaliation did not sit well in the Arab world, to put it mildly.
BACKLASH BREWING
Even before Trump came up with his Abraham Accords conditionality, the backlash had started on Capitol Hill and elsewhere especially in the non-proliferation community. The proposed deal, according to many experts, lacked the "gold standard" that has been upheld as the "gold standard" in previous nuclear energy agreements: a commitment by the nation to use American built plants to enrich nuclear fuel; no reprocessing of fuel; and no plants subject to international inspection.
"A bad nuclear deal with Saudi Arabia is coming for congressional review — regardless of what you hear from the Biden administration," Andreas Stricker of the Foundation for the Defense of Democracies said. "Congress should block it. If it doesn't, the long-term damage will be reversed by a subsequent administration before too much damage is done in terms of watering down safeguards, setting negative precedents for other states, and failing to contain the spread of enrichment and reprocessing — which we just put back in the box in Iran via force".
From what is available from media reports, the deal would be open to inspections only by the US and Saudi Arabia with no involvement of the International Atomic Energy Agency (IAEA).
In the immediate context, the Saudis getting a nuclear deal — even without the conditionality of the Abraham Accords — would create additional headaches on the Iran front if and when negotiations resume. For the Trump administration which had come down hard on Iran for its nuclear programme and still give Saudi Arabia a wide berth with no protocols and its Additional Protocols makes discussions on the Iranian issue with Tehran more complicated. It also strengthens the hands of the hardliners in Tehran who have always pointed to the dual standards of Washington.
What has been consistently pointed out is that for all the noise made on the nuclear programmes of Iran and North Korea, there is hardly a murmur on Israel which is generally seen as an undeclared nuclear weapon state.
The American nuclear industry must be elated seeing the billions and perhaps even trillions coming its way through these nuclear deals, accord designed to keep China and Russia out.
"But this is the business of non-proliferation worry about. Some in Washington are already cutting their own exclusives and without the involvement of the IAEA and its Protocols. Add to this the possibility of mischievous and known proliferationists lending their weight — and it is truly a nightmare scenario".
The writer is a senior journalist who has reported from Washington DC on North America and United Nations.
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