SCO Summit in Bishkek, Modi-Putin Bilateral Talks and Eurasian Connectivity

India recorded a GDP growth of 7.8% in the first quarter, triggering a political confrontation between the ruling party and the opposition over whether economic expansion is benefiting the common man. The economic growth was driven by a 9.2% increase in manufacturing output, a 12.1% surge in financial services, and a nearly 12% jump in private capital investment. Despite external challenges including West Asia geopolitical tensions, energy supply shocks, US tariff pressures, shipping disruptions, rupee weakness, and monsoon concerns, the economy maintained strong momentum supported by macroeconomic stability and domestic consumption.

A political war of words has broken out following the release of the latest gross domestic product figures, with the ruling party and the opposition clashing over the state of the economy. While the government hailed India's first-quarter economic growth rate of 7.8 per cent, positioning the nation as the fastest-growing major economy despite global challenges and energy crises, the Congress party termed the headline figures a greatly distorted picture of the economy. The opposition argued that the official numbers fail to reflect underlying structural weaknesses, flagging sluggish consumer confidence, depressed private investment sentiment, galloping prices of household essentials, and alarming levels of educated unemployment. The Congress also raised concerns over the widening trade deficit with China and conglomerate dominance in key sectors. In response, the ruling party demanded an apology from opposition leaders, asserting that the robust quarterly growth data neutralises claims of an impending economic crisis and demonstrates the structural resilience of the Indian economy.

India has rejected a ruling by the World Bank-constituted Court of Arbitration on the Indus Waters Treaty, stating the body was illegally constituted and that its decision to keep the water-sharing pact in abeyance remains in force. The Ministry of External Affairs responded after the panel ruled the treaty remains operative and asked India to limit work on a hydroelectric project in Jammu and Kashmir. India maintained that it has never recognised the existence in law of the court and considers its establishment a grave violation of the pact. India has sought renegotiations with Pakistan citing changed security, geographic, and sociological conditions, noting the treaty's foundational goodwill ceased to exist due to cross-border terrorism.

Senior BCCI officials are set to hold a key meeting with Ajit Agarkar to decide his future as the chairman of the selection committee. According to sources within the BCCI, members within the board and the Indian cricket team are keen for Agarkar to continue in his role, with the BCCI open to offering him an extension. The development comes amid questions raised over recent selection calls in the Test and T20 squads. However, the final decision on whether he continues will depend on the upcoming meeting and Agarkar's personal choice.