Category: Politics

According to an OECD analysis released Wednesday, Israel’s economy is expected to improve well over the next two years if geopolitical tensions lessen. The analysis predicted a GDP growth of 3.4% in 2025 and 5.5% in 2026, following a slow 0.9% increase in 2024 due to conflicts with Hamas in Gaza and Hezbollah in Lebanon. Meanwhile, the Bank of Israel predicts that the economy will increase by 4% in 2025 and 4.5% in 2026.

OECD Secretary-General Mathias Cormann presented the biennial survey to Israel’s Social-Economic Cabinet, chaired by Finance Minister Bezalel Smotrich. Smotrich appreciated the study and acknowledged the challenges and opportunities it identified for maintaining long-term growth. To stabilise government finances, the OECD advocated structural reforms, such as tax increases on sugary drinks and congestion fines.

The analysis forecasted inflation of 3.7% in 2025, above the Bank of Israel’s goal range of 1-3%, before falling to 2.9% in 2026. It advised against lowering interest rates until inflation is under control. The OECD also emphasised the importance of labour market changes, pushing for core curricula in Arab and ultra-Orthodox schools and market liberalisation. It also advocated for further regulation in the AI-powered high-tech sector to ensure long-term economic viability.

Greece plans to invest €25 billion over the next decade to upgrade its military and adapt to emerging high-tech warfare capabilities. Defence Minister Nikos Dendias presented the ambitious makeover to parliament, underlining the necessity for a technologically advanced defence strategy.

The “Achilles Shield” air defence system is at the centre of this development, meant to improve security in the face of ongoing tensions with Turkey. Greece and Turkey, both NATO members, have a history of territorial disputes in the Aegean Sea and the eastern Mediterranean, which have brought them close to conflicts on several occasions.

Dendias emphasised the transition from traditional defence systems to a more dynamic, AI-powered approach. The concept will include mobile missile weapons, drone technologies, and enhanced command units to reduce dependency on traditional fleets. The plan also includes next-generation troop equipment that incorporates sensors and communication devices. Additionally, Greece intends to create dedicated satellite capabilities for secure wartime communications.

The military makeover will also restructure personnel, merge units, and close underutilised bases, resulting in more efficient command structures. Local technology startups will play an important role in upgrading defence capabilities.

This comes amid rising European military spending in response to the Ukraine conflict and prospective alterations in US defence obligations.

Prime Minister Narendra Modi’s two-day visit to Thailand, which begins Thursday, is aimed at improving economic and investment ties between the two countries. India’s rapidly developing market continues to draw Thai investors, and Indian investments in Thailand have steadily increased in recent years.

Thailand has made investments in India’s infrastructure, real estate, agro-processing, electronics, automotive, food processing, hospitality, and renewable energy sectors. One of the most significant investments occurred in 2021, when Global Renewable Synergy Co., Ltd invested $453.29 million in India’s renewable energy sector.

Bilateral trade has thrived under the Early Harvest Scheme, which comprises 83 items under the India-Thailand CECA, signed in 2004. Furthermore, the ASEAN-India Trade in Goods Agreement has promoted more efficient trade flows. AITIGA is being reviewed as improving accessibility and business facilitation.

Thailand’s Ministry of Commerce estimates that bilateral commerce will total $16.04 billion in 2023. India’s exports totalled $5.92 billion, while Thailand’s imports were worth $10.11 billion. Thailand is India’s fourth largest trading partner in the ASEAN area.

Among India’s most important exports are machinery, metals, medicines, chemicals, and agricultural items. In exchange, Thailand supplies India with fats, oils, polymers, jewellery, and iron and steel.

India and the United States are making substantial progress towards finalising a Bilateral Trade Agreement as the deadline for US reciprocal tariffs approaches on April 2. Following an intervention by the Prime Minister’s Office, India has agreed to the Terms of Reference (ToR) for negotiations, paving the way for future discussions. The ToR establishes the foundation for the trade agreement and requires approval from the highest political authority before actual negotiations may commence.

After four days of deliberations, US officials left India without finalising the Terms of Reference. However, both countries have finally achieved an agreement, clearing the stage for formal negotiations. India is anticipated to reduce tariffs on certain American items in exchange for trade concessions from the US. President Donald Trump recently stated that India is willing to lower tariffs, indicating a positive development in the ongoing negotiations.

Meanwhile, the US Trade Representative (USTR) expressed many reservations regarding India’s trade policy. These include agricultural and genetically modified product import bans, internet shutdowns, and medical device pricing limitations. Former Indian trade official Ajay Srivastava warned that while India should join in trade discussions, it must prioritise national interests and ensure that accords are consistent with its economic and social goals.

Finance Minister Nirmala Sitharaman to officially launch the “NITI NCAER States Economic Forum” portal on April 1. The platform is intended to provide a comprehensive database of economic, social, and fiscal statistics for Indian states during the past three decades, up to the fiscal year 2022-23.

The platform, created in collaboration between NITI Aayog and the National Council of Applied Economic Research (NCAER), divides data into five core verticals: demography, economic structure, fiscal health, education, and healthcare. Its goal is to provide researchers, policymakers, and analysts with a single-window access to state-level economic data.

The program would allow users to compare state performance to national averages and other regions, enabling data-driven decision-making. The tool will facilitate evidence-based policymaking by providing real-time information and historical trends.

According to NITI Aayog, the portal’s user-friendly interface allows for seamless navigation, making complex data easily accessible. It will also promote informed conversations by presenting a structured macroeconomic and fiscal landscape for all 28 states. The database is expected to be a valuable tool for policymakers in tracking economic progress and identifying emerging patterns.

The portal’s centralised repository of information intends to increase transparency and stimulate strategic conversations about state-level development policies.

The US Department of Energy (DoE) has given Holtec International a regulatory license to design and build nuclear reactors in India. This is a huge step forward in the nearly two-decade-old nuclear pact between India and the United States.

According to reports, the DoE approved Holtec on March 26, allowing nuclear cooperation between the two countries. The license authorises Holtec to exchange ‘unclassified small modular reactor (SMR) technology’ with three Indian firms—Holtec Asia, Larsen & Toubro Ltd, and Tata Consulting Engineers Ltd—under US rule ’10CFR810′. The authorisation is valid for ten years and is evaluated every five years.

However, Holtec is prohibited from exporting technology to Indian government firms such as NPCIL, AERB, and NTPC Ltd since India has not supplied the necessary non-proliferation assurances. Holtec may subsequently seek to incorporate them. The US has stipulated that the technology cannot be shared without its approval and must only be used for peaceful reasons. Holtec must also provide quarterly updates on technological transfers.

Holtec was founded by Indian American Krishna P. Singh and has operations in Gujarat and Pune. If full-scale manufacturing commences, the business intends to increase its staff, a significant step towards cementing the India-US nuclear collaboration.

The United Arab Emirates participated in the Global Conference on AI, Security, and Ethics in Geneva, confirming its commitment to responsible technological development. Omran Sharaf, Assistant Foreign Minister for Advanced Science and Technology, met with foreign experts, including Robin Geiss, Director of the United Nations Institute for Disarmament Research (UNIDIR), to address AI’s expanding role in global security and its ethical implications.

During the conversations, Sharaf emphasised the importance of international collaboration in regulating artificial intelligence. He stated that when non-state actors acquire access to crucial technologies, there is an urgent need for global safeguards. He emphasised the significance of responsible knowledge sharing among states and the implementation of solid regulatory frameworks for international peace and security.

Jamal Al Musharakh, the UAE’s Permanent Representative to the UN in Geneva, expressed similar thoughts. He added that global cooperation within the UN system is critical to guarantee that AI serves humanity’s collective interests by fostering peace and shared values.

Diplomats, military officials, corporate leaders, academics, and representatives from civil society all attend the annual UNIDIR meeting. It enables professionals to investigate the influence of AI on national, regional, and global security and resilience.

Vikram Misri, India’s Foreign Secretary, and Christopher Landau, US Deputy Secretary of State, recently discussed ways to decrease trade obstacles, boost defence and technology collaboration, and combat illegal immigration to the US. The conversation aimed to promote a fair and balanced bilateral commercial partnership.

According to a statement issued by the US Department of State, Landau expressed gratitude for India’s help in combating illegal immigration. He emphasised the importance of sustained cooperation between the two countries. The discussions also addressed security and development in the Indo-Pacific region.

The US government’s decision to begin enforcing reciprocal tariffs on Indian imports on April 2 coincided with the high-level negotiations. During the encounter, Misri congratulated Landau on his confirmation by the US Senate and invited him to visit India.

The Ministry of External Affairs emphasised India and the US’ growing strategic relations, citing expanded trade, defence, and technological agreements. Both sides underlined their commitment to further conversation on major bilateral issues.

Meanwhile, the US Embassy in India recently cancelled 2,000 visa appointments scheduled using bots, confirming its zero-tolerance approach against visa scheduling infractions. In a post on X, the embassy emphasised its firm opposition to unauthorised agents misusing the visa system.

Analysts describe the post-1945 world order as being stuck between the old and new power structures, undergoing a seismic change. Even though there have been conversations about this change for more than ten years, current occurrences highlight how real it is. This transformation is exemplified by the high-profile meeting between US Senator Marco Rubio and Russian Foreign Minister Sergei Lavrov in Saudi Arabia, as well as the heated exchange between US President Donald Trump and Ukraine’s Volodymyr Zelenskyy in the Oval Office on March 5.

This geopolitical reshuffling enables middle powers to establish themselves by using both hard and soft power to protect national interests. Joseph Nye popularised the term “soft power,” which denotes a country’s ability to influence others through culture, ideals, and diplomacy rather than coercion. A combination of soft and hard power, known as “Smart Power,” has emerged as the favoured tactic, even though military force and economic penalties are still essential.

Saudi Arabia has emerged as a vital diplomatic player, hosting crucial meetings to resolve the Russia- Ukraine crisis. Its transition, characterised by social reforms and programs such as NEOM, indicates a purposeful image shift.

His Excellency Eng. Sultan bin Saeed Al Mansoori, Chairman of Dubai Chambers, met with His Excellency Sunjay Sudhir, Ambassador of India to the UAE, to explore how Dubai and India can strengthen their trade and investment connections. The meeting was held at the Dubai Chambers offices and was attended by His Excellency Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers.

Both sides emphasised the importance of developing bilateral trade and investment prospects, as well as Dubai and India’s deep economic cooperation. His Excellency Al Mansoori remarked that Dubai is committed to promoting global economic cooperation and that Indian enterprises continue to play an important role in Dubai’s progress. He emphasised that Indian enterprises are the largest foreign business community in Dubai, contributing considerably to a variety of industries.

The meeting also focused on collaboration in information technology, logistics, and aviation. Discussions focused on Dubai’s World Logistics Passport program, which aims to streamline global trade and reduce costs. Indian entrepreneurs were encouraged to use Dubai as a gateway to foreign markets, utilising the Dubai Foreign Chamber’s global network.

With 16,623 new Indian companies joining Dubai Chambers in 2024, the discussions reaffirmed Dubai’s standing as a favoured investment destination.