India

The Economic Times | English | News | Dec. 5, 2025 | Regulation

The Reserve Bank of India's Monetary Policy Committee (MPC) has begun its three-day meeting, with a key interest rate decision expected on Friday. While markets generally anticipate a 25-basis-point reduction in the repo rate, some analysts suggest the RBI may hold the rates steady at 5.50%. The MPC, chaired by RBI Governor Sanjay Malhotra, is meeting amidst a backdrop of falling inflation, robust GDP growth, a depreciating rupee crossing 90 per US dollar, and ongoing geopolitical challenges.

Retail inflation based on the Consumer Price Index has remained below the government's lower tolerance band of 2% for the last two months, while India posted an 8.2% GDP growth rate in the second quarter, exceeding expectations. Earlier this year, RBI had already cut the repo rate by 100 basis points across three rounds starting February, supported by easing inflation trends. Some economists, including Crisil’s Chief Economist Dharmakirti Joshi, expect a rate cut given improved inflation data, while others, like Bank of Baroda’s Aditi Gupta, believe a pause may be warranted to monitor strong economic momentum and global uncertainties.

The RBI is expected to revise its GDP growth forecast upward in the wake of stronger-than-expected first-half results. The central bank had previously raised its estimate to 6.8% for the fiscal year, up from 6.5%, and with 8% growth in the first half, India is likely to surpass the FY26 target range of 6.3–6.8%, as projected in the Economic Survey. The MPC's decision and assessment will be closely watched for indications on monetary policy direction amid evolving economic indicators.

Livemint | English | News | Dec. 5, 2025 | Extreme Weather Events

The India Meteorological Department (IMD) has issued a weather warning predicting isolated heavy to very heavy rainfall on 3 December over north coastal Tamil Nadu, Kerala, coastal Andhra Pradesh, Yanam, and Rayalaseema. This comes after a week of persistent rainfall in the region. The weather system, a remnant of Cyclone Ditwah, weakened from a depression into a well-marked low-pressure area and is moving southwestward across north coastal Tamil Nadu and Puducherry. The IMD expects it to further weaken within 24 hours.

The heavy rains have significantly impacted Tamil Nadu, especially in Chennai, Tiruvallur, Chengalpattu, and Kancheepuram districts, causing sudden inundation. Residents in Chennai neighborhoods like Nungambakkam and Perambur have faced knee-deep water. Other districts such as Villupuram, Cuddalore, Tiruvannamalai, and Ramanathapuram also experienced heavy rain and flooding. Emergency services used boats to rescue stranded individuals in Chennai, and relief efforts include over 200 camps providing food and shelter to displaced families.

Authorities have declared holidays for schools and colleges in multiple districts to manage safety. A Red Alert was issued for Tiruvallur, Chennai, Kancheepuram, and Chengalpattu, warning of heavy rainfall exceeding 15 mm per hour, thunderstorms, and winds up to 40-60 kmph. Fishing operations are suspended in affected coastal areas of the Bay of Bengal, Tamil Nadu, Puducherry, Andhra Pradesh, the Gulf of Mannar, and the Comorin region until further notice.

Vivekananda International Foundation | English | AcademicThink | Dec. 5, 2025 | Geopolitical Conflict and Disputes

Between October 9 and 16, 2025, Afghanistan’s acting Foreign Minister, Amir Khan Muttaqi, undertook his first high-level visit to India since the Taliban took power in 2021. The visit included meetings with Indian Foreign Minister Subrahmanyam Jaishankar, interactions with Afghan refugees and business communities, visits to think tanks, and attendance at press conferences. Both countries reaffirmed commitments to sovereignty, regional stability, counter-terrorism, and agreed to enhance cooperation in development, trade, investment, hydropower, and air freight. India also agreed to upgrade its technical mission in Kabul to an embassy and receive Taliban diplomats, maintaining support for the Afghan people without formally recognizing the Taliban government.

The visit carried significant symbolic weight, coinciding with Pakistani attacks on Kabul and border clashes that underscored Islamabad’s opposition to Kabul’s improving ties with New Delhi. The Taliban’s white Shahada flag was prominently displayed at the Afghan Embassy in New Delhi, representing their de facto authority. The exclusion of women journalists from a conference triggered public scrutiny, highlighting the sensitive optics of diplomatic engagements and the need for balanced representation. A later press conference specifically for women journalists attempted to address the issue. Symbolic moments included Muttaqi seated beneath an image of the Bamiyan Buddhas and references to Rabindranath Tagore's “Kabuliwala,” evoking deep cultural and historical connections between India and Afghanistan.

Muttaqi’s visits to the Vivekanand International Foundation and the Federation of Indian Chambers of Commerce and Industry reflected efforts to broaden bilateral engagement beyond politics to economic, cultural, and intellectual spheres. He advocated for investment in Afghanistan’s mining, agriculture, and infrastructure sectors, promoting economic normalization and self-reliance. Speaking in Urdu during most of his visits signaled an effort to connect with India’s wider public and foster mutual benefit. Engagement with the Afghan diaspora, particularly Hindu and Sikh communities in India, conveyed Taliban assurances of inclusivity and safety, enhancing the credibility of religious diplomacy.

The visit to Darul Uloom Deoband, the ideological origin of the Deobandi movement that inspired the Taliban, underscored a spiritual and intellectual reconnection and alignment with South Asian Islamic scholarship rooted in spirituality and anti-colonialism. This dimension of the visit highlighted the Taliban’s desire to assert ideological relevance and cultural ties.

Overall, Muttaqi’s visit demonstrated a multifaceted diplomatic approach combining formal agreements with powerful symbolism, reflecting strategic pragmatism and mutual willingness to cooperate. For India, the visit signifies a commitment to helping Afghanistan through people-centric projects while maintaining principled engagement without formal recognition. For Afghanistan, it signals a move toward strategic autonomy and diversified partnerships beyond Pakistan. Challenges remain for India in navigating domestic sensitivities, regional rivalries, and recognition issues. Future engagement priorities for India include strengthening its technical mission in Kabul, expanding cooperation in trade, aid, development, academic and cultural exchanges, and easing visa protocols for Afghan students. Encouraging MSME involvement in Afghanistan’s agriculture, textiles, and renewable energy sectors and investing in mobile banking, digital education, and telemedicine can foster sustained bilateral ties and soft power while minimizing regional tensions.