The Union Cabinet on Saturday approved the establishment of a ₹12,980 crore Bharat Maritime Insurance Pool with a sovereign guarantee, Union Information and Broadcasting Minister Ashwini Vaishnaw said. He stated that the decision aims to provide continuous insurance support to India’s shipping sector, especially at a time of rising geopolitical tensions and global uncertainty, which have increased premiums and affected insurance availability, particularly due to the situation in West Asia.

The proposed insurance pool will cover multiple maritime risks, including hull and machinery, cargo, protection and indemnity (P&I), and war-related risks. It will apply to Indian-flagged vessels, Indian-controlled ships, and vessels connected to India’s trade routes. The initiative will be run with participation from domestic insurers and is expected to reduce reliance on foreign insurance companies while ensuring smooth trade operations. Vaishnaw said the sovereign guarantee is a key feature that strengthens the scheme and helps lower costs.

He also clarified that the scheme is designed for shipping operators, while the VCGC scheme targets individual exporters, adding that the current geopolitical situation highlighted the need for such a mechanism. The Cabinet approved a 2% increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, raising it to 60% of basic pay or pension from January 1, 2026. The revision is expected to benefit over 50 lakh employees and around 68 lakh pensioners, with an annual cost of about ₹6,791 crore.

The Cabinet also extended the Pradhan Mantri Gram Sadak Yojana (PMGSY-III) until March 2028, increasing its total outlay to ₹83,977 crore. The programme will continue improving rural road connectivity to markets, schools, and healthcare facilities, with extended deadlines for completing works in both plain and hilly regions. Officials said the move will boost rural development and employment.

In the railway sector, two major expansion projects were approved. The first involves adding third and fourth rail lines on the 403 km Ghaziabad–Sitapur route at a cost of ₹14,926 crore, part of the Delhi–Guwahati high-density corridor, expected to be completed in four years. The project will add six stations in Uttar Pradesh and improve passenger and freight movement along the route.

The second project covers the Rajahmundry (Nidadavolu)–Visakhapatnam (Duvvada) corridor, with a ₹9,889 crore investment to add additional rail lines. This is expected to ease congestion and improve efficiency along the eastern coastal railway network. Together, the five Cabinet decisions involve a total outlay of more than ₹1.28 lakh crore.
Disclaimer: This image is taken from Business Standard.

S&P Global Ratings said India’s strong macroeconomic and financial fundamentals are likely to soften the blow of a prolonged oil price shock, but growth could still decline by up to 80 basis points if Brent crude averages around $130 per barrel in 2026. Under this stress scenario, the agency expects corporate EBITDA to fall by 15–25% in FY27, while leverage could increase by 0.5x to 1x. Bank asset quality may also deteriorate, with non-performing loans rising to about 3.5%.

The report noted that India is not fully insulated from disruptions linked to the West Asia conflict, as higher energy prices and supply constraints could weigh on households, businesses, and banks for an extended period. At the same time, S&P highlighted that strong corporate balance sheets, well-capitalised banks, and a stable external position would act as important buffers.

In its assumptions, Brent crude is projected at $130 per barrel in 2026 and $100 in 2027 under stress conditions, compared with a base case of $85 and $70. The agency does not anticipate any immediate sovereign rating impact, although fiscal consolidation may face short-term pressure. Rising oil prices could also widen India’s current account deficit, with each $10 increase in crude potentially adding about 0.4 percentage points of GDP to the gap. The rupee may come under depreciation pressure due to higher import costs and weaker investor sentiment.

S&P added that an energy shock would likely pass through the economy via higher production costs, margin pressure, inflation, and possible government subsidies, which could strain public finances. Sectors such as chemicals, refining, and aviation are expected to be most affected, while infrastructure and utilities may remain relatively stable.

Despite these risks, India enters 2026 with strong growth momentum, solid domestic demand, and low inflation, which should help absorb near-term shocks. Corporate deleveraging and improved banking health over recent years are also expected to limit systemic stress. Indian banks are seen as capable of handling the impact due to strong capital buffers and low bad loans, though credit costs and profitability may face mild pressure in FY27. S&P said India is positioned to withstand short-term oil price spikes and supply disruptions, but a prolonged shock could pose risks to growth, fiscal stability, and external balances. It added that while some strain is manageable, fiscal consolidation efforts may be temporarily delayed.
Disclaimer: This image is taken from Bloomberg.

Indian Oil Minister Hardeep Puri is embarking on a two-day visit to Qatar starting Thursday, aiming to secure faster delivery of natural gas and cooking fuel amid India’s ongoing energy concerns. The trip comes at a time when a tentative ceasefire between the US and Iran has created a potential window to ease tensions affecting the Persian Gulf, a critical source of India’s fuel imports.

India depends on imports for roughly half of its natural gas requirements and about two-thirds of liquefied petroleum gas (LPG), which is widely used for domestic cooking. Most of these supplies come from West Asia. The recent six-week conflict in the Persian Gulf has disrupted supply chains, causing shortages for industrial users and triggering price hikes across energy markets.

Qatar remains India’s largest supplier of both LNG and LPG, providing 45% and 20% of imports, respectively. However, after attacks on its key export facility, the Gulf nation declared force majeure on gas exports, warning that full recovery could take years. Officials familiar with Puri’s plans, speaking on condition of anonymity, indicate that he will seek expedited supply schedules and request that India be given priority for LNG shipments. The Oil Ministry announced the sudden trip via a social media post but did not provide further details.

Puri’s visit follows just a day after the US and Iran reached a ceasefire agreement, tied to reopening the Strait of Hormuz, a vital shipping route. While the White House welcomed the truce, it remains fragile, and maritime traffic through the strait was still largely suspended on Thursday, leaving India dependent on diplomatic and bilateral engagement to secure its critical energy imports.

Disclaimer: This image is taken from PTI.

India’s central bank on Wednesday indicated the level of liquidity needed to keep overnight rates closely aligned with the key policy rate. It reiterated that the weighted average call rate (WACR) serves as its operating target and should remain as close as possible to the repo rate. According to the RBI’s monetary policy report, maintaining a liquidity surplus between 0.6 percent and 1.1 percent of deposits would likely keep the gap between the WACR and the policy rate within 5 to 10 basis points. The central bank noted that while liquidity and the spread move in opposite directions, the relationship is not linear.

The RBI left the repo rate and policy stance unchanged. Governor Sanjay Malhotra emphasized that the central bank will remain proactive and forward-looking in managing liquidity, ensuring adequate funds to support the economy’s productive needs. On the other hand, a liquidity deficit of 0.4 percent to 0.7 percent of deposits could push the WACR above the repo rate by 5 to 10 basis points. The RBI added that while excess liquidity beyond a certain point has limited additional impact on narrowing the spread, deficit conditions can cause the spread to widen sharply.

Liquidity in the banking system recently rose above 4 trillion rupees, its highest level in eight months, pulling the WACR below 5.10 percent this month—more than 15 basis points lower than the repo rate of 5.25 percent. The central bank also observed that the effect of surplus liquidity weakens after a threshold, as the yield curve flattens with further increases. The RBI noted that aligning the WACR with the repo rate requires different liquidity levels depending on whether the system is in surplus or deficit, and the degree of alignment depends on the magnitude of that surplus or shortfall.
Disclaimer: This image is taken from Business Standard

As tensions rise in Iran, the global energy system is being tested like never before. Critical chokepoints such as the Strait of Hormuz, along with concentrated LNG infrastructure in hubs like Ras Laffan, highlight the inherent rigidity and vulnerability of oil and gas markets. Andrea Heng and Hairianto Diman explore what “market adjustment” looks like when long-term contracts offer little flexibility, and why Europe could once again face a challenging scramble for energy supplies. Their analysis includes insights from Pang Lu Ming, Vice President of Gas & LNG Research at Rystad Energy.

Disclaimer: This podcast is taken from CNA.

Oil prices have jumped significantly as tensions in the Middle East intensify, with concerns over potential supply disruptions pushing crude prices up by double digits. If this upward trend persists, rising energy costs could reignite inflation and affect transportation, manufacturing, and household expenses globally. Andrea Heng and Hairianto Diman examine how various countries are stockpiling oil, diversifying their supplies, and managing the impact of higher prices, including insights from Vandana Hari, Founder of Vanda Insights.

Disclaimer: This podcast is taken from CNA.

On Saturday, President Donald Trump increased the US global import tariff to 15%, following the Supreme Court’s ruling that invalidated much of his previous tariff program. Trump described the new 15% rate as “fully allowed and legally tested,” replacing the earlier 10% plan, and said it would be temporary under current trade law for 150 days. Questions remain about how enforceable this measure is and what will happen once the 150-day period ends. Andrea Heng and Hairianto Diman discuss the implications with Angela Mancini, Partner and Head of the Global Risk Analysis Practice for Asia Pacific at Control Risks.

Disclaimer: This podcast is taken from CNA.

2026 is shaping up to be a defining year for the AI-driven economy. According to Saxo Bank’s latest analysis, the upcoming IPO pipeline is dominated by tech giants poised to move from private backing to public scrutiny. While OpenAI and Anthropic represent high-risk, high-reward bets on generative AI, companies like Canva and Stripe showcase more established models in SaaS and Fintech at scale. Andrea Heng and Susan Ng highlight the key factors investors should monitor — including governance, computing costs, and revenue sustainability — as these “private unicorns” prepare for their public market debut, with insights from Chan Yew Kiang, ASEAN IPO Leader at EY.
Disclaimer: This podcast is taken from CNA.