Economy

Punjab is preparing to deploy artificial intelligence across its agricultural ecosystem in a bid to improve productivity, sustainability, and farmer incomes. The initiative focuses on using data-driven tools to support crop planning, pest management, irrigation efficiency, and yield forecasting. By combining satellite imagery, weather data, and machine learning models, policymakers aim to reduce input costs and mitigate climate-related risks. The move reflects a broader shift toward technology-led farming as traditional practices struggle with rising costs and unpredictable weather.

The Indian rupee weakened further and slipped beyond the critical 90-per-dollar threshold, closing the session at 90.20 against the US dollar. The decline reflects continued pressure from a strong dollar, persistent foreign fund outflows, and elevated global uncertainty. Currency markets remained cautious as investors reacted to signals of prolonged tight monetary conditions in major economies and rising geopolitical risks.

Private equity investment in real estate rose sharply to $6.7 billion, underscoring renewed confidence in the sector amid improving fundamentals and selective value creation opportunities. The uptick reflects stronger deal flow across commercial office spaces, warehousing, logistics parks, and income-generating assets, supported by stable demand and disciplined pricing. Investors are increasingly favoring assets with long-term cash-flow visibility and resilience to economic cycles.

Gold opened 2026 with steady prices, reflecting investor preference for safe-haven assets amid ongoing global economic uncertainties. In contrast, silver retreated after a strong year-end rally, pressured by profit-booking and softer industrial demand. Market analysts note that geopolitical tensions, inflation expectations, and currency movements continue to influence precious metals. While gold benefits from risk aversion and portfolio diversification demand, silver remains more sensitive to industrial activity and cyclical trends.

Steel prices in India dropped to a five-year low in 2025, reflecting a convergence of weakening domestic demand, subdued infrastructure activity, and global supply pressures. Key benchmarks, including hot-rolled coils and long products, saw sustained declines as construction and automotive sectors moderated after years of strong growth. Industry participants noted that excess inventory and slower capital expenditure further exacerbated the price slide. While cost pressures from raw materials like coking coal eased slightly, it was insufficient to offset the broader demand slowdown.

India is increasingly turning to chemical recycling as a strategic response to two pressing challenges: the mounting burden of plastic waste and heavy reliance on imported naphtha for petrochemical production. By converting end-of-life plastics into feedstock such as pyrolysis oil, chemical recycling offers an alternative source of hydrocarbons while supporting circular economy goals. The approach has drawn interest from refiners and chemical manufacturers seeking supply security and sustainability gains.

Silver prices surged to an unprecedented level in the national capital, with rates climbing to Rs. 2.41 lakh per kilogram, marking a new record for the metal. The sharp rise highlights renewed investor interest in precious metals amid global economic uncertainty, currency volatility, and sustained industrial demand. Market participants attribute the rally to a combination of safe-haven buying and supply-side constraints, positioning silver as both a defensive asset and a critical industrial input.

Indian equity markets are facing unprecedented pressure in 2025 as foreign portfolio investors (FPIs) execute their largest-ever withdrawal from domestic stocks. Driven by global monetary tightening, elevated valuations and rising geopolitical uncertainty, overseas investors have pulled substantial capital from Indian equities, triggering heightened volatility across benchmark indices. While domestic institutional investors have partly cushioned the impact, the scale of the outflow has raised concerns about near-term market stability.

India’s foreign exchange reserves recorded a strong increase, rising by $4.36 billion to reach $693.3 billion, reflecting improved external resilience and strategic reserve management. The latest rise was driven largely by a notable increase in the value of gold holdings, underscoring the central bank’s continued emphasis on diversification and stability. The expansion of reserves provides policymakers with greater flexibility to manage currency volatility, meet external obligations, and safeguard financial stability amid global uncertainty.

The global automobile industry is entering a decisive phase as manufacturers prepare to recalibrate strategies in response to slowing demand, evolving consumer preferences, and rapid technological change. Carmakers are reassessing product portfolios, accelerating innovation cycles, and tightening cost structures to remain competitive in an increasingly complex environment. Electric mobility, regulatory compliance, and pricing pressures are reshaping boardroom priorities, while traditional internal combustion engine models face declining momentum.