🇮🇳 Domestic Affairs
🌧️ Early Monsoon Sweep
The Southwest Monsoon advanced across India nine days ahead of schedule, covering the entire country by June 29—its fastest spread since 2020, and reaching Delhi a day early compared to the usual date of June 30. This promises boosted sowing and agricultural prospects, though localised rain may slow industrial output, notably in mining and power ✔️ .
🔻 Industrial Growth Slows
India’s Industrial Output (IIP) rose just 1.2% year‑on‑year in May, marking the slowest growth since August 2024. Weak performance in mining and electricity—hit by early monsoon rains—weighed down overall industrial activity .
📈 Fiscal & Market Snapshot
Fiscal deficit for April–May stood at 0.8% of the annual target, signalling controlled government spending .Equity markets saw a mild cooldown as Nifty and Sensex pulled back from record highs on profit‑taking in financial stocks, snapping a four‑session rally .
🌐 Diplomacy & Trade
🤝 Trade Talks & U.S. Tariffs
India–U.S. trade negotiations hit a stumbling block. India views agriculture and dairy as “red‑line” issues, while the U.S. is seeking deeper tariff concessions before the July 9 deadline. Talks remain high-stakes and ongoing .
🛡️ SCO Defence Summit & China Ties
At the SCO defence ministers’ meeting in Qingdao, India, led by Rajnath Singh, pushed for permanent resolution of the China border dispute. However, member nations couldn’t adopt a joint communique due to disagreements—particularly over terrorism language .
🇺🇸 Quad Talks in Washington
External Affairs Minister S. Jaishankar heads to Washington (June 30–July 2) to attend the Quad Ministers’ meeting, addressing Indo‑Pacific security and regional cooperation alongside the U.S., Japan, and Australia .
📉 Financial Markets
₹ & Bonds Watch
The Indian rupee surged ~1.3% last week—its strongest gain in over two years—as easing crude oil prices and a softer dollar buoyed investor sentiment. Market focus has shifted to potential U.S. Fed rate cuts by September. Meanwhile, India’s 10‑year bond yield held around 6.31%, with active bond supply and RBI liquidity operations on watch .
🕸️ Infrastructure Credit Boost
Moody’s applauds RBI’s eased lending rules for under‑construction infrastructure projects: provisioning dropped from 5% to 1%, expected to revive project financing and bank lending .
🌎 Global
🚁 Operation Sindhu: Evacuation from Iran
India launched Operation Sindhu, successfully airlifting 3,170 nationals from Iran amid the escalating Iran–Israel war. Importantly, no casualties were reported during the operation .
💡 Quick Takeaways
Theme Highlight
Monsoon Fastest early spread since 2020; agricultural boonGrowth Industrial growth down; fiscal discipline maintainedMarkets Currency up; bonds stable; infrastructure credit improvingDiplomacy Complex trade talks with U.S., SCO summit, Quad meetingGlobal Ops Efficient evacuation of Indians from Iran