Our weekly newsletter, analysing global stories from an Indian lens
In Focus
Spotlight Delhi: Raisina Dialogue 2025Â
The three-day Raisina Dialogue 2025 will be inaugurated today by Prime Minister Narendra Modi, with New Zealand Prime Minister Christopher Luxon as the chief guest. As in previous years, European nations will maintain a strong presence on the VVIP guest list. The dialogue will also see high-level participation from Ukraine, Taiwan, Nepal, Slovakia, Ghana, Cuba, Antigua and Barbuda, Peru, among others. The guest list reflects India’s multialignment approach to foreign affairs, but is also often shaped by logistical constraints, scheduling realities, and existing relationships between organizers and invitees.Â
A key outcome of the India-New Zealand leaders’ meeting was their decision to relaunch negotiations for a comprehensive Free Trade Agreement. Delhi is also hosting U.S. Director of National Intelligence Tulsi Gabbard, who met with Defence Minister Singh today on the sidelines of a conclave of top global intelligence chiefs. Counterterrorism was likely a major agenda item in her talks with Singh.
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A (somewhat) Fresh Start for CanadaÂ
Mark Carney, a former central banker, will succeed Trudeau as the leader of Canada’s Liberal Party, winning with 85.9% of the votes cast in the Liberal leadership race. A seasoned economist, Carney is well-equipped to navigate Canada's ongoing trade tensions with the U.S., which he believes require maintaining the "rightly retaliated" $30 billion CAD tariffs on U.S. imports until the "Americans show some respect."Â
Carney's leadership may also present an opportunity to improve ties with India. He views rebuilding relations with India as crucial to Canada's strategy of diversifying trade beyond the U.S. India will likely press Canada to urgently address its concerns about pro-Khalistan extremism operating from Canadian soil. Despite the entrenched presence of pro-Khalistan groups in Canada's political landscape—which may limit Carney's ability to act decisively—his lack of political baggage and a more pragmatic approach could allow him to prioritize economic ties with India more effectively than his predecessor.
EU Cuts Foreign Aid to Prioritize Defense Spending
Following USAID cuts, European nations are redirecting their budgets to meet growing defense demands. The UK is slashing its aid budget by 40% to prioritize military spending, while France is cutting aid by more than a third, and Germany is also scaling back. NATO members face mounting pressure to ramp up defense investments, reinforce collective security and strengthen commitments to Ukraine. With constrained fiscal space, reductions in foreign aid have emerged as the most feasible way to reallocate resources toward military capabilities. Critics argue that development aid has yielded diminishing returns in fostering economic growth, while its soft power utility for donor nations has also waned.
During European Commission President Ursula von der Leyen’s visit to New Delhi, the long-pending EU-India Free Trade Agreement was finalized, boosting bilateral defense cooperation. India's defense exports have surged, rising from an average of ₹2,000 crore over the past decade to ₹21,000 crore in the last financial year alone. As European nations expand defense budgets, Indian manufacturers stand to integrate further into global supply chains, enhancing exports of weapons and military systems to Europe.
Terror Resurgence: From Syria to the Sahel
Syria is grappling with its worst sectarian violence since the ousting of Bashar al-Assad, with over 1000 people killed in recent clashes between the Islamist-led government and Alawite fighters loyal to the former regime. The new President, Ahmed al-Sharaa, a former leader of the Islamist group Hayat Tahrir al-Sham, has faced criticism for his inability to control the violence, raising concerns about his government's legitimacy and ability to maintain order.
Islamist violence continues to spread across sub-Saharan Africa, where recent atrocities—such as the beheading of 70 Christians in the Congo—have garnered little international attention. The latest Global Terrorism Index (GTI) 2025 highlights that the Sahel region remains the epicenter of terrorism, accounting for over half of all global terrorism deaths. The Islamic State (IS) has expanded its operations to 22 countries, causing 1805 deaths, with 71% of its activity concentrated in Syria and the Democratic Republic of Congo. Pakistan ranks second in the GTI due to a significant surge in terror attacks and civilian casualties, with Tehreek-e-Taliban Pakistan emerging as the fastest-growing terrorist group.
