Structural

• Iran's economy nearly stagnated in 2025, recording a marginal growth rate of only 0.2% while non-oil GDP experienced a contraction. • The slowdown is attributed to a series of conflicts, including a 12-day war with Israel in the summer and a 40-day conflict involving the U.S. and Israel in the winter, alongside January's nationwide protests. • Long-term structural crises, including severe international sanctions, chronic corruption, mismanagement, and declining investment, have further crippled economic activity.

• Finance Minister Nirmala Sitharaman has confirmed that India's extensive food buffer networks are fully secured to ensure food security. • The treasury is currently monitoring second-round logistics overheads, even as global energy markets experience a recent de-escalation. • India's institutional fiscal planning framework is re-aligning to address a complex combination of domestic and global resource constraints.

• The Bharatiya Janata Party expanded its electoral dominance across India's political map, strengthening its presence in large parts of the country and leaving only a handful of states under opposition rule following the 2026 assembly election results. • The BJP's continued electoral momentum, coupled with strong performances in states like Assam under Chief Minister Himanta Biswa Sarma, reinforces the party's structural dominance ahead of upcoming state elections. • Growing cracks emerged within the opposition INDIA bloc following the elections, with significant disagreements over issues like women's reservation-linked legislation undermining coalition unity and strategy.