Good morning, friends. We begin the week with DP World’s latest investment pledge in India’s logistics sector. India-Oman FTA signing seems to be delayed due to pending approval from Majlis Shura. While China has restarted rare-earth minerals to India, we also look at the impact of climate change on India’s economy in the long run. Let’s dive in.

WATCH THIS SPACE-

#1- The signing of the India-Oman Comprehensive Economic Partnership Agreement (CEPA) has been delayed pending procedural approvals on the Omani side, and not due to any disagreements, Moneycontrol reports, citing unnamed government sources. Negotiations, which concluded in August after five rounds of talks, are now awaiting approval from Oman’s legislative body, Majlis Al Shura, and the cabinet.

The benefits: The pact, which follows the India-UAE CEPA inked in 2022, is expected to significantly bolster labor-intensive Indian exports such as textiles, gems and jewellery, and leather goods — all of which face steep tariffs in the US. Currently, nearly 80% of Indian goods incur an average 5% import duty in Oman.

Bilateral trade between India and Oman stood at USD 10.6 bn in FY 2024-25, with India running a USD 2.5 bn trade deficit. Indian exports amounted to USD 4 bn and imports stood at USD 6.5 bn.

#2- China has resumed rare-earth magnet exports to India, approving licenses for several automotive and electronics manufacturers after a six-month suspension, The Hindu Businessline reports. Licenses have been issued to Continental India, Hitachi Astemo India, Jay Ushin, and DE Diamond Electric India.

Conditions apply: The permits, granted under China’s export-control rules, require importers to submit end-user certificates and restrict re-export to the US or use in defence applications, Business Standard reports. The move follows a pause imposed in April 2025, when Beijing tightened scrutiny over rare-earth shipments amid geopolitical tensions.

Supply chain reprieve: The approval is expected to ease component shortages for India’s EV, electronics, and auto-parts sectors, which faced disruptions in manufacturing during the suspension period. China accounts for nearly 90% of global rare-earth magnet output, making its resumption critical for India’s manufacturing value chain Reuters reports.

#3- India risks losing up to 25% of its GDP by 2070 due to long-term economic effects of climate change, The Hindu reports, quoting Ewa Suwara, the deputy head of delegation of the EU to India. Ewa highlighted the need for urgent and joint action to tackle these risks. The estimate is based on findings from the Asian Development Bank regional climate impact study, which accounts for losses from extreme heat, rising sea levels, and reduced labor productivity. The EU reaffirmed its commitment to supporting India’s clean-energy and climate-resilience goals, including technology transfer and investments in renewable-energy and battery-storage projects.

#4- Google will offer 18 months of no-charge access to its Gemini AI service for all 505 mn subscribers of India’s largest telecom carrier Reliance Jio, Reuters reports. The subscription — normally priced at around INR 35.1k (USD 399) per annum in India — includes access to Gemini’s advanced model, 2 TB of cloud storage, and AI-powered image and video generation tools. The rollout will begin with 18-25-year-old users on select Jio plans before expanding nationwide.

Context: The rollout follows OpenAI’s decision to make its ChatGPT Go plan available at no cost for 12 months to Indian users. At the same time, Bharti Airtel is extending 12 months of complimentary access to Perplexity Pro — a plan typically priced at around INR 17k — as global AI companies compete to expand user adoption in India’s rapidly expanding user base, Reuters reports.

THE BIG STORY ABROAD-

No single story is dominating today’s headlines, but a few are getting top billing:

Israel threatened to increase its attacks against Hezbollah in Lebanon with Israeli Prime Minister Benjamin Netanyahu saying that Israel “shall take whatever action is required” to prevent Hezbollah from opening a new front. Meanwhile, US special envoy Tom Barrack warned that time is running out for Lebanon’s government to enforce the ceasefire deal struck last year, which requires Beirut to disarm Hezbollah, something both Israel and Washington say the group is actively refusing. (Bloomberg | New York Times | Guardian)

ALSO WORTH READING THIS MORNING‑ Top AI labs including Google DeepMind, Anthropic, OpenAI and Microsoft are racing to plug a new security hole in large language models that allows hackers to embed commands in emails or websites and trick the models into spilling confidential data, the Financial Times report.

AND- US envoys are accused of deploying “bully‑boy tactics” to intimidate diplomats from Africa, the Pacific, and the Caribbean into sidelining the UN-backed Net Zero Framework for global shipping, writes the Financial Times.

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