
Global Trade Shifts, AI Speculation and India’s Growth Prospects in 2026
As 2026 nears, AI hype meets revenue reality, tariffs fade, but India’s growth faces weak demand, rural stress and rising risks.

As 2026 nears, AI hype meets revenue reality, tariffs fade, but India’s growth faces weak demand, rural stress and rising risks.

TK Arun Washington’s intervention undermines sovereignty norms, destabilises Latin America, weakens Europe’s moral case on Ukraine; it’s high time India spoke up Watch out, Denmark and Greenland! Imperialism rides again! That might have sounded facetious or as an exaggeration till…

The coming year will be moulded by the continuing unilateral efforts by the Trump administration to register reasonably robust growth, as projected — two per cent is reasonable growth for a $31 trillion economy — but the Chinese economy is likely to grow faster than most official projections, and register a growth rate of five per cent or more. India’s growth is likely to gasp for breath in 2026, and not just because of air pollution, although the release of a new series of GDP numbers could flatter to deceive.

When the Bank of Japan raises its policy rate to 0.75%, that unsettles global finance, accustomed as the world is to borrowing ultra-cheap in yen and investing in assets denominated in other currencies, the yields in whose economies are significantly higher than in Japan.
The IMPRI Centre for International Relations and Strategic Studies (CIRSS), IMPRI Impact and Policy Research Institute, New Delhi, hosted a panel discussion on ‘Defence, Foreign Policy, and the Union Budget 2026–27’ under its 7th Annual Series of Thematic Deliberations and Analysis of the Union Budget 2026–27.

Putin’s India visit signals New Delhi’s refusal to bow to US pressure, focusing instead on defence, technology, and geopolitical advantage.

US President Donald Trump's recent announcement to resume nuclear testing is aimed at bolstering the US deterrence posture vis-à-vis an emerging threat landscape. Though the US later clarified that it was not planning to conduct nuclear explosions, Trump administration's approach so far on all matters nuclear has showcased a full spectrum, ranging from an inclusive proposal for arms reduction among the US, China and Russia to the latest resumption of nuclear testing.