India’s economic growth slowed in the October-December quarter as government spending and private investment eased, but the South Asian nation remained the world’s fastest growing major economy, helped by strong consumption.

The economy grew 7.8 per cent in October-December from a year earlier under a new data series, slowing from 8.4 per cent expansion in the previous quarter.

The Indian government’s projections under the new data series marginally boosted growth for financial year ending March 31. The economy is estimated to grow by 7.6 per cent in 2025/26, the National Statistics Office said on Friday. It had been forecast to grow by 7.4 per cent under the old data series.

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For financial year 2026/27, the country’s projected economic growth has been revised to 7-7.4 per cent under the new series, said Chief Economic Adviser V Anantha Nageswaran after the data was released. In his annual report released last month, the economy was projected to grow at 6.8-7.2 per cent for 2026/27.

The South Asian nation will comfortably cross the $4trn mark in the next financial year, Nageswaran said.

India attempts to overcome tariff challenges

For much of the current financial year, India’s economy has contended with uncertainty from tariffs, which have weighed on exports.

In response, Prime Minister Narendra Modi’s administration accelerated domestic reforms, including cutting consumer taxes on hundreds of items and pushing ahead with long-delayed labour reforms.

Earlier this month, New Delhi reached an interim agreement with Washington that reduces effective tariffs to 18 per cent , easing trade tensions, although the deal has yet to be formally signed.

The US Supreme Court’s order striking down President Donald Trump’s global tariffs may improve India’s trade position in its upcoming interim negotiations. Meanwhile, Trump has announced a temporary 10 per cent duty on all nations, including India, and promised to raise it to 15 per cent.

Private consumption remains strong

Despite those pressures, private consumption remained strong, expanding by 8.7 per cent year-on-year in the October-December period compared with an 8 per cent expansion in the previous quarter.

Government spending rose 4.7 per cent year-on-year in October-December, down from a 6.6 per cent increase the previous quarter while private investment grew 7.8 per cent, lower than the 8.4 per cent growth a quarter ago.

Manufacturing grew by 13.3 per cent in the third quarter, compared with 13.2 per cent a quarter ago. Financial services and hospitality sectors held strong.

Growth in farm output, a sector which employs more than 40 per cent of the workforce, slowed to 1.4 per cent in the third quarter of the current fiscal year from 2.3 per cent a quarter ago.

“Service sector performance signals a strong lift, besides double-digit growth in manufacturing,” said Radhika Rao, economist at Singapore-headquartered DBS Bank.

“The October-December quarter also benefited from indirect tax rationalisation and festive demand, in addition to a better faring rural farm sector,” Rao said.

As India’s growth has remained strong, rating agency ICRA expects the central bank to keep rates on hold, with inflation likely to rise temporarily, its chief economist Aditi Nayar said.

The Reserve Bank of India (RBI) kept its key repo rate unchanged earlier this month.

Statistical overhaul

India has overhauled its statistical framework this year, first updating the consumer price index and now revising the GDP series to better reflect structural changes in the economy.

As part of the changes, the government has widened its data sources to include Goods and Services Tax (GST) filings, corporate financial returns and digital platform data to improve coverage of economic activity.

At the core of the GDP overhaul is the shift to adopting more granular price deflation to improve accuracy. Until now, it largely deflated only input prices, with heavy reliance on the wholesale price index.

The changes are expected to address concerns raised by the International Monetary Fund last year over India’s national accounts methodology, including the outdated 2011/12 base year and reliance on wholesale prices, for which it gave the framework a “C” rating.

At VAST Forward 2026, VAST Data unveiled two new computing services — VAST Data PolicyEngine and VAST Data TuningEngine — designed to advance the capabilities of its AI Operating System and support organisations scaling mission-critical AI deployments.

The two services are engineered to work in tandem, enabling AI systems that are governed, explainable and continuously learning. PolicyEngine is focused on governing agentic activity, while TuningEngine manages model tuning and reinforcement learning workflows. Together, they create automated learning loops designed to remain aligned with organisational policies and expectations.

“Just as people are always learning, so should tomorrow’s applications,” said Jeff Denworth, co-founder at VAST Data. “With the introduction of PolicyEngine and TuningEngine, the VAST AI Operating System has become a thinking machine that customers can deploy wherever they compute – a machine that safeguards every interaction and learns from every outcome, bringing the power of AI within reach of every organization.”

Strengthening governance in agentic AI

As AI agents increasingly access enterprise data and generate new information — from model outputs to agent-to-agent communications — governance has become a critical requirement. Without granular controls and auditability, risks such as data leakage and policy violations increase.

VAST’s PolicyEngine addresses this challenge through inline policy enforcement that governs agent access to shared memory, tools, knowledge bases and other agents. The system applies fine-grained, explicit permissions and AI-derived contextual controls before actions are executed. It also maintains tamper-proof logs and traceability, reinforcing a zero-trust operating model designed to ensure that agent decisions remain observable, explainable and auditable.

Enabling continuous model improvement

Complementing PolicyEngine, the TuningEngine extends VAST’s AgentEngine — the AI OS’s serverless agentic runtime — by introducing structured learning loops. While AgentEngine supports multi-agent orchestration and model deployment, TuningEngine captures performance data from agent workflows and uses curated feedback to continuously improve models.

Using techniques such as LoRA fine tuning, supervised fine tuning and reinforcement learning, TuningEngine automates data ingestion, candidate model generation and benchmarking within the VAST AI OS. Approved models can then be deployed manually or automatically, initiating new cycles of improvement based on future interactions.

The TuningEngine will also integrate with NVIDIA’s NeMo Data Designer to support training and fine-tuning of NVIDIA Nemotron open models, expanding VAST’s collaboration with NVIDIA.

With the introduction of PolicyEngine and TuningEngine, VAST Data said its AI OS now enables a closed operational loop that observes, reasons, acts, evaluates and improves — while embedding governance and security at every stage.

The new services are expected to be available by the end of 2026.

The UK has expanded the use of digital visas since February 25, in a move designed to simplify applications and reduce the need for travellers to surrender passports during processing, UK Visas and Immigration (UKVI) said.

Under the changes, e-visas will replace physical visa vignette stickers for most applicants, allowing them to retain their passports while a decision is pending. This also means applicants can apply for visas to other countries at the same time, a step expected to ease travel planning.

More than 10 million people already use e-visas, which are replacing physical immigration documents such as biometric residence permits and passport stickers, UKVI said, adding the system is entering its final implementation phase and will become the default proof of immigration status across most routes.

E-visa processing: One visit is mandatory to confirm identity and provide biometric details

Applicants will still need to attend a visa application centre once to confirm identity and submit biometric data, after which they can leave with their passport and await a decision.

Srinarayan Sankaran, COO for Global Operations at VFS Global, said the shift would give travellers greater flexibility by allowing parallel visa applications and removing reliance on courier delivery of documents.

Successful applicants will receive instructions by email on how to access their e-visa.

UKVI said travellers must create an online account and verify their visa details before travelling to the UK.

Air travel across the UAE was brought to a temporary standstill on Sunday after multiple regional airspace closures prompted major carriers to suspend operations, affecting thousands of passengers and triggering a sweeping aviation directive from regulators.

The suspensions impact operations at the country’s primary hubs in Dubai and Abu Dhabi, with airlines including Emirates, flydubai, Air Arabia, Etihad Airways and Air India announcing temporary halts to flights. Authorities say the measures are precautionary and prioritise passenger and crew safety amid what officials describe as a “dynamic and developing situation.”

Operations are currently suspended until Monday afternoon, March 2, with airlines advising customers to monitor updates closely and avoid travelling to airports without confirming flight status.

Emirates halts Dubai operations

Dubai-based Emirates confirmed it has suspended all operations to and from Dubai until 1500hrs UAE time on Tuesday, March 3, citing multiple regional airspace closures.

In a customer advisory, the airline said passengers booked to travel before or on March 5, have several options.

“Rebook on an alternate flight,” the airline advised, allowing customers to travel to their intended destination on or before March 20. Travellers who booked through travel agents must contact their agents directly, while those who booked with the airline can reach out through official customer support channels.

Passengers may also request a refund by completing the designated refund form if they booked directly.

The airline urged customers to check flight status before heading to the airport and reminded affected travellers that updated contact details are essential to receive timely notifications.

flydubai suspends flights amid developing situation

Low-cost carrier flydubai also suspended all flights to and from Dubai until 15:00 (UAE time) on Monday, March 2, 2026.

In a statement, the airline described the circumstances as evolving.

“This is a developing situation, and we are monitoring it closely while working with the relevant authorities to adjust our flight schedule accordingly,” the airline said.

flydubai confirmed its teams are implementing “comprehensive welfare” measures for affected customers and reiterated that safety remains its “highest priority.”

Customers travelling within the next 72 hours have been advised to log in to Manage Your Booking, rebook free of charge up to 20 days from their original travel date, and ensure their contact details are current. The airline also warned of a high volume of calls at its contact centre and requested patience from travellers.

Passengers seeking assistance may contact the flydubai Contact Centre in Dubai at (+971) 600 54 44 45, visit a travel shop, or reach out to their travel agent.

Air Arabia extends suspensions to regional destinations

Air Arabia announced that flights to and from the UAE are temporarily suspended until 15:00 (UAE time) on Monday, March 2.

The airline added that flights to Lebanon, Jordan, Syria and Iraq are suspended until 03 March, extending disruptions for passengers travelling to key regional destinations.

“Our teams continue to actively monitor the evolving situation, and operations will resume once the airspace reopens,” the airline said.

Passengers who booked through direct channels and are due to travel within 24 hours are encouraged to use online options for alternatives, while those who booked via travel agents should contact them directly.

Air Arabia urged customers to update their contact information through the Manage Booking page and check flight status before heading to the airport.

Etihad suspends Abu Dhabi flights

Etihad Airways confirmed that all flights to and from Abu Dhabi are suspended until 14:00 UAE time on Monday, March 2.

“Regional airspace closures continue to impact Etihad Airways’ operations,” the airline said in an operational update.

Passengers holding tickets issued on or before February 28, 2026, with original travel dates up to March 7, 2026, may rebook free of charge on Etihad-operated flights up to March 18, 2026.

Guests travelling until March 3, may also request a full refund through the airline’s website or via their travel agent.

Etihad acknowledged high call volumes and encouraged passengers to use online tools where possible. “The situation remains dynamic and schedules may change at short notice,” the airline said, adding that normal operations will resume “as soon as conditions permit.”

Indigo extends Middle East flight suspensions

In response to ongoing regional developments and their potential impact on aviation safety, Indigo has announced an extension of the temporary suspension of select international flights operating through parts of Middle Eastern airspace.

The airline confirmed that it has been closely monitoring the situation and carefully evaluating operational inputs before taking the decision. According to the advisory, the extension reflects what the airline considers the most responsible course of action at this time, with passenger and crew safety remaining the top priority.

As part of its continued precautionary approach, Indigo has extended the suspension of certain international services that transit through affected areas of the Middle East. In addition, some other international flights may experience disruptions as the airline aligns its operations with the evolving conditions in the region.

Passengers are encouraged to regularly check their flight status for the most up-to-date information.

Acknowledging the uncertainty surrounding the current situation, the airline emphasized its commitment not only to operational preparedness but also to customer support. Travelers whose bookings are impacted will receive timely notifications through their registered contact details. Dedicated support teams will reach out directly to assist with rebooking or alternative arrangements.

Flexible travel options and waivers

To ease inconvenience, Indigo has announced full flexibility and travel waivers for flights to and from the Middle East, as well as other affected international sectors. The policy applies to bookings made on or before February 28, 2026, for travel up to March 7, 2026.

Affected customers may reschedule their travel at no additional cost or opt for a full refund.

The airline concluded its advisory by thanking customers for their patience and understanding, reiterating that safety remains its foremost priority as it continues to monitor the situation closely.

Passengers are advised to stay informed through official airline communication channels for further updates.

Aviation regulator grounds drones and recreational aircraft

In a separate but related development, the General Civil Aviation Authority (GCAA) issued a directive suspending all flight permits for gliders, unmanned aerial vehicles (drones), and recreational aircraft for one week, effective immediately.

The decision was taken “in light of the prevailing circumstances and in the interest of ensuring public safety and the protection of national airspace,” according to a WAM report.

During the suspension period, the operation, launch or flight of such aircraft is strictly prohibited.

The Authority stated it will review the situation at the end of the specified period to determine whether to resume operations or extend the suspension.

The GCAA emphasised that full compliance is mandatory and warned that violations will be subject to legal measures.

Emergency and embassy helplines activated

Authorities have also reminded residents and visitors of emergency contact numbers available across the UAE.

The UAE Ministry of Foreign Affairs Emergency line is reachable at 00971-80024 for general support.

In case of emergency within the country:

999 – Police
998 – Ambulance
997 – Fire Department (Civil Defence)
996 – Coastguard
995 – Find and Rescue
991 – Electricity failure

Several embassies have issued hotline numbers for nationals requiring urgent assistance:

India Embassy: 800 46342
Consulate General of India, Dubai: +971 4 397 1222 / +971 4 397 1333
Pakistan Embassy: +971 2 444 7800
Philippine Embassy: +971 50 813 7836
Nepal Embassy: +971 50 394 9304
Bangladesh Embassy: +971 2 446 5100
US Embassy: +971 2 414 2200
UK Embassy: +971 4 309 4444

China’s Huawei will sell batteries to British business Aggreko for a renewable energy project in Brazil’s Amazon region, in what is expected to become the country’s largest-ever energy storage system, the two companies told Reuters.

Huawei’s batteries will run alongside solar plants set up in microgrids across Brazil’s Amazonas state, in order to diversify Aggreko’s power supply in the region away from polluting thermal plants.

Aggreko’s project will cost about 850 million reais ($165.55m) and take up to three years for full implementation, with the first plants coming online between 2027 and 2028, said Cristiano Lopes Saito, Aggreko’s director for sales to the utilities sector in Brazil.

“It’s an extremely disruptive project, the largest microgrid project currently in the Americas,” Barbara Pizzolato, off-grid director at Huawei in Brazil told Reuters.

While the thermal plants will remain operational to guarantee supply, the project should allow for lower carbon emissions, the companies said.

They forecast that the microgrids will supply energy to communities in 24 locations in Amazonas state, including in large cities such as Tefe, home to about 75,000 people.

The project is a boost to Huawei, as the Chinese manufacturer seeks to expand operations in Brazil amid expectations of an upcoming first-ever government auction for batteries.

Brazil is just starting to adopt battery energy storage systems and has only one large-scale project of this type, by the transmission company ISA Energia on the coast of Sao Paulo state.