India

The Economic Times | English | News | Jan. 23, 2026 | UndeterminedPolitics and Elections

Bangladesh has officially launched campaigns for its general elections scheduled for February 12, 2026, marking the first polls since the 2024 uprising that ended Sheikh Hasina's autocratic rule. The elections will select 350 lawmakers, signaling a shift in domestic and regional political dynamics following a period of turmoil that included violence and widespread online disinformation warnings.

The main contenders, the Bangladesh Nationalist Party (BNP) and the Islamist Jamaat-e-Islami party, have commenced large-scale rallies. BNP leader Tarique Rahman, returning from exile in December 2025, has begun a nationwide campaign starting in Sylhet, a city significant for its Sufi Muslim heritage. Jamaat-e-Islami initiated its campaign in Dhaka, seeking to re-enter politics after years of suppression, aligned with the Muslim Brotherhood ideology. The National Citizen Party (NCP), formed by leaders of the anti-Hasina uprising and allied with Jamaat, also launched its campaign in Dhaka.

Nobel laureate Muhammad Yunus, who was appointed caretaker prime adviser during the transitional government, will step down after the elections. Yunus, having inherited a fractured political system, is advocating for a referendum on political reforms concurrent with the polls to strengthen governance and prevent authoritarianism. He has also raised concerns about misinformation flooding social media, blaming both foreign and local sources.

Relations with India remain strained after Hasina fled there during the uprising and was subsequently sentenced to death in absentia for crimes against humanity related to the crackdown on protesters. Hasina, now 78, remains in hiding in India as Bangladesh prepares for its pivotal 2026 elections.

Hindu Business Line | English | News | Jan. 23, 2026 | UndeterminedEconomic Growth

In 2025, India experienced a rare "Goldilocks" phase characterized by moderate and resilient economic growth alongside subdued inflation, supported by stable macroeconomic fundamentals despite global volatility. The Reserve Bank of India’s cumulative 125 basis points repo rate cuts and fiscal, monetary, and regulatory policies have fostered this growth environment, leading to a prediction-defying Q2 FY26 GDP growth of 8.2 percent. Both urban and rural consumption contributed, with rural demand boosted by good monsoons and government incentives. Manufacturing output grew impressively by 9.1 percent in Q2 FY26, driven in part by the Production Linked Incentive (PLI) program, which attracted investments totaling ₹2 lakh crore and generated over 12.6 lakh jobs.

Government capital expenditure remains the primary growth driver, while private capital expenditure is gradually picking up, supported by strong corporate balance sheets, easier banking conditions, and growth in corporate bond markets, which reached $642 billion by March 2025. India’s economic trajectory is fueled by comprehensive reforms including GST rate rationalization, income tax rationalization, labor code streamlining, and policies focusing on clean energy and energy self-reliance. The Insolvency and Bankruptcy Code (IBC), implemented nine years ago, has been pivotal in resolving ₹12 lakh crore of stressed debt and reducing non-performing assets, thereby improving the ease of doing business and enhancing investment attractiveness.

The investor base expanded notably in 2025, with increased participation from younger generations, women, and households in tier-2 and tier-3 cities, reducing dependency on foreign capital. Monthly Systematic Investment Plan (SIP) flows highlight growing retail investment, which supports capital formation and wealth creation. However, foreign portfolio investors showed caution, with net outflows of around $10.4 billion in 2025, exerting pressure on the Indian rupee. Regulatory initiatives such as SEBI’s ‘India Market Access’ platform and RBI’s proposal to expand External Commercial Borrowings framework aim to improve global investor participation and access to capital.

Looking ahead to 2026, India is expected to shift from policy intent to tangible outcomes with ongoing policy easing, regulatory clarity, and FDI openings in insurance and nuclear energy sectors supporting sustained growth. The financialisation of savings and increased capital expenditure in sectors like electronics manufacturing services and defence are anticipated to drive the next investment cycle. Strengthened corporate balance sheets, rising credit demand, and improved earnings position India to leverage its structural advantages and emerge as a significant global growth engine amid ongoing global uncertainty.

The Economic Times | English | News | Jan. 23, 2026 | UndeterminedTrade Issues and Numbers

US President Donald Trump expressed confidence in the India-US Bilateral Trade Agreement (BTA), stating that the two countries are "going to have a good deal." He praised Indian Prime Minister Narendra Modi as a close friend and a respected leader during an interview with Moneycontrol following his address at the 56th Annual Summit of the World Economic Forum.

India's Commerce Secretary Rajesh Agrawal indicated that the first tranche of the BTA is "very near," though he did not provide a specific timeline. The agreement, formally proposed in February 2025, aims to more than double bilateral trade between India and the US from USD 191 billion to USD 500 billion by 2030.

The trade talks were initiated during Prime Minister Modi's visit to Washington in February 2025. The Ministry of External Affairs confirmed that since February 2025, both countries have conducted multiple negotiation rounds to reach a balanced and mutually beneficial agreement, with several occasions where they were close to finalizing the deal.