Weekly Data Digest: Trade Pacts, Budget Cuts, and Economic Indicators
This weekly compilation delivers essential data-based insights through clear charts, offering a deeper perspective on key stories reported over the past seven days. From landmark international agreements to critical domestic budgetary shifts and revealing economic metrics, here is the news distilled into numbers.
Landmark India-US Free Trade Agreement Announced
After months of tense negotiations and tariff disputes that strained bilateral relations, India and the United States officially announced a long-awaited free trade agreement on Monday. India confirmed it will face reciprocal US tariffs of 18%, a significant reduction from the previous 50%. In return, the US stated that India has committed to cease purchasing Russian oil, progress toward zero tariffs on a broad array of American goods, eliminate non-tariff barriers, procure $500 billion worth of US products, and grant greater access to its agricultural market. India has, however, reaffirmed its intention to protect sensitive sectors such as farming and dairy. The 18% tariff level positions India competitively with other exporting nations, potentially offering a strategic advantage.
Drastic Reduction in PM Internship Scheme Funding
The Union Budget for 2026-27, presented by Finance Minister Nirmala Sitharaman on February 1, implemented a severe cut to the allocation for the Prime Minister’s Internship Scheme (PMIS). Funding was slashed to approximately ₹4,788 crore from the previous year's budgeted outlay of over ₹10,831 crore. As one of the Modi government's flagship initiatives, the PMIS has faced significant challenges in effectively utilizing its allocated resources. The scheme utilized a mere 1.6% of its allocation in FY25, its launch year, and is projected to exhaust only about 5% of the budgeted funds in FY26. This lack of fund demand is particularly alarming given the context of a 10.2% unemployment rate among youth in FY24, starkly higher than the national average of 3.2%.
Key Figures in Focus
- ₹2,229 crore: Bajaj Finserv's consolidated net profit for Q3 FY26, showing a marginal decline year-on-year due to labor code compliance costs and accelerated expected credit loss provisions, despite a 24% revenue increase.
- 96%: The proportion of surveyed WhatsApp users receiving unsolicited or spam messages daily, with 30% reporting four to seven such texts every day, according to a LocalCircles survey.
- ₹5 lakh: The proposed minimum fine, accompanied by a seven-year prison term under the Drugs and Cosmetics Act, as India's drug regulator aims to combat illegal diversion of pharmaceutical opioids amid a worsening crisis.
- 236,963: Total vehicles sold by Maruti Suzuki India in January, marking a 12% increase from 212,251 units sold in the same month last year.
- $1 billion: The damages sought by US President Donald Trump from Harvard University, escalating a confrontation over alleged ideological bias and campus protests.
Services Sector Outpaces Manufacturing in PMI Rebound
India's Services Purchasing Managers' Index (PMI) rebounded to 58.5 in January, recovering from an 11-month low of 58.0 in December, driven primarily by accelerated expansions in new business intakes and output. The Manufacturing PMI also saw an uptick, rising to 55.4 from 55.0, recuperating from a slowdown in December 2025. While both sectors have experienced monthly volatility in recent years, services activity has consistently outperformed manufacturing. This trend has largely persisted since services overtook manufacturing in November 2022, following the post-COVID-19 recovery. Manufacturing has exceeded services only twice since then—in January and October of 2025.
Finance Commission Adjusts Tax Devolution, Favoring Richer States
The 16th Finance Commission has provided some relief to wealthier, better-performing states by increasing their share in the Centre's tax devolution, following the introduction of a new criterion based on states' contribution to GDP. Karnataka experienced the sharpest rise, with its share climbing from 3.6% under the 15th Finance Commission to 4.1% in the latest award. Other southern states, along with Maharashtra and Gujarat, also recorded gains, addressing long-standing grievances that fiscal transfers penalized economic success. Conversely, some poorer states saw marginal declines. Uttar Pradesh's share decreased from 17.9% to 17.6%, while Bihar's fell from 10.1% to 9.9%. Central taxes are devolved through two mechanisms: vertical devolution, which fixes the overall share of taxes to states—retained at 41% by this Finance Commission—and horizontal devolution, which determines the distribution among states.
Startup Ecosystem Shows Persistent Gender Leadership Gap
India's startup ecosystem appears to lack significant women's leadership, according to commerce ministry data presented in the Lok Sabha on Tuesday. Less than half of the over 200,000 recognized startups in India have at least one woman director or partner. A similar pattern is observed across most states, where this share remains around 50% or lower. Even in states with the highest number of startups, women hold a relatively small proportion of leadership roles. For instance, Maharashtra, which hosts the largest number of startups, has only about 50% with a woman director or partner. Karnataka, with approximately 21,000 startups, has just 48%. Despite ranking in the top ten, Gujarat has only about 43% of startups with at least one woman director or partner. This indicates that while India's startup culture is expanding rapidly, gender diversity in leadership has yet to gain commensurate momentum.
