Politics and State Affairs
1. Tamil Nadu government formation sees suspense
Although Vijay’s TVK emerged as the single-largest party (108 of 234 seats) in the assembly election, it still needs at least 10 more MLAs for a majority. The Congress party (5 seats) has pledged support, and talks with other regional parties (VCK, CPI, CPM) are ongoing. The DMK conceded defeat and will move to opposition. On 7 May, Vijay met Governor R.N. Ravi to stake his claim; the Governor has asked for signed letters from supporting MLAs before any oath ceremony. Press reports note that Vijay has declined ceremonial perks (returning the CM convoy cars) until formation is confirmed. AIADMK’s brief overture to ally collapsed, and DMK has largely stayed aloof. The uncertainty hinges on a few rural seats and small party decisions. If backing is secured, Vijay will be sworn in; if not, the Governor may delay or explore alternatives.
2. Assam’s ruling alliance set to continue
In Assam’s 2 May election, the BJP-led National Democratic Alliance (NDA) won 102 of 126 seats. On 6 May, Chief Minister Himanta Biswa Sarma tendered his resignation (with cabinet) to Governor Gulab Chand Kataria. This is a procedural step ahead of forming a new government. Sarma will likely be re-elected as chief minister: he has convened the newly elected BJP legislative party, with party national leaders present, to confirm its leader and ministry. Formal results show BJP won 82 seats, allies AGP 10 and BPF 10, totaling 102. The Congress won only 19, too few for official opposition status (needs 22). The Governor has invited the NDA to take oath. Experts say Sarma’s reappointment is almost certain, given the clear majority, though a few appointments and alliance portfolios are still being negotiated. No significant dispute over the result has emerged, and the government formation process is expected to conclude in the coming days.
Economy and Markets
3. RBI imposes new forex dealer norms
The Reserve Bank of India issued a fresh set of regulations for foreign exchange (Authorised Persons) on 8 May. It introduces three categories of authorised dealers (AD-I, AD-II, AD-III) with progressively stringent capital and compliance requirements. Importantly, no new Full-Fledged Money Changer (FFMC) licences will be issued, and existing franchisee-based MMTC (foreign exchange dealer) arrangements must end within two years. Instead, RBI expects adoption of a principal-agent model (Forex Correspondents) for travel currency exchanges. The central bank said these steps will “strengthen the regulatory framework” and help manage volatility in the rupee. Analysts note that tiered norms and higher net-worth thresholds aim to improve transparency in currency transactions. Foreign dealers and fintech firms now need additional approvals. The measures follow market jitters in recent months; the RBI has suggested further steps may come if needed. Markets reacted mildly, with some speculation that banks will raise stricter KYC or collateral. RBI has given a transition period of six months to align with the new rules.
4. Rupee swings amid oil turmoil
The Indian rupee fell to ~₹94.53 to the dollar on 8 May after crude prices jumped, amid renewed U.S.–Iran hostilities. Reuters reported the rupee dipped about 0.3% that day, its first weekly loss in two weeks. Traders said oil buying and geopolitical risk (a flare-up of clashes between U.S. and Iranian forces in the Gulf) pressured the currency, which had hit a record low of ₹95.43 earlier in the week. State-owned banks intervened by selling dollars at the low to cushion the fall. By late trading, volatility eased, though the currency remained weaker week-on-week. A Mumbai banker told Reuters that oil-driven swings are now the main driver of the rupee. Economists also pointed out upcoming U.S. payroll data may influence the dollar. This currency move closely follows the RBI’s new forex rules (see item 3) and underscores external risks; the government has announced looking at ways to attract dollar inflows to stabilize the rupee.
Technology and Science
5. Skyroot Aerospace achieves unicorn status
Hyderabad-based startup Skyroot Aerospace achieved a $1.1 billion valuation after raising $60 million in a new funding round. The round was led by Singapore’s sovereign fund GIC and Sherpalo Ventures (joined by BlackRock), taking Skyroot’s total capital raised to $160 million. This makes Skyroot the first Indian space-sector company to cross the $1 billion mark. The Reuters report notes Skyroot launched India’s first privately-developed rocket in 2022 and is preparing for the maiden flight of its Vikram-1 orbital launch vehicle. Industry experts say the large investment signals strong global confidence in India’s nascent private space industry. Skyroot’s CEO said the funds will expand manufacturing and launch cadence. Veteran space lobbyist Lt Gen A.K. Bhatt (ret.) commented that this milestone will attract more investment in India’s space projects. The startup is on track to collaborate with ISRO’s facilities. However, success now hinges on Skyroot’s technical progress: the first commercial orbital launch is expected later this year, and failure of that mission could test investor faith. Overall, this funding round marks a major leap for India’s space-tech sector.
Judiciary and Legal Affairs
6. Supreme Court bench to be strengthened
The Union Cabinet on 5 May cleared a proposal to amend the Supreme Court (Number of Judges) Act, increasing the Court’s total sanctioned strength from 33 to 37 judges. This move, which will be introduced as a bill in Parliament, is aimed at reducing the Court’s heavy case backlog and speeding up justice delivery. The amendment will add four additional judges (apart from the Chief Justice’s position). The government note explains that the increased strength will be accommodated within the existing budget. This is the first expansion in the Supreme Court’s size since 2019. Legal experts say a larger bench can hear more cases (especially Constitution benches) simultaneously, which may clear older matters. The Parliament now must pass the bill; thereafter, the Supreme Court Collegium will recommend new judges. The timeline for appointments remains uncertain. Civil society organizations had earlier demanded more judges to address pendency, so this decision addresses a longstanding issue in India’s judicial reforms.
Health and Pharmaceuticals
7. Quicker drug approvals via new NDCT rules
The Health Ministry notified amendments to the New Drugs and Clinical Trials (NDCT) Rules 2019 on 12 Feb 2026 to streamline drug development. Key changes include replacing several licensing requirements with a prior-intimation procedure, shortening approval timelines, and waiving the need for regulatory permission for certain low-risk studies. For example, test licenses for small-scale manufacturing (for research or analysis) are now substituted with an online “prior intimation” submission, speeding up pre-clinical research. The statutory processing period for necessary permits has been cut from 90 days to 45 days. Manufacturers of generic drugs will no longer need advance approval for specified low-risk bioequivalence trials after notifying regulators online. Officials say these reforms will reduce drug development time and encourage pharmaceutical R&D, aligning with ease-of-doing-business goals. Patient safety safeguards (for high-risk drugs) remain, but the overall oversight will be more digitised and predictable. Industry leaders have welcomed the reforms, noting that India’s generic makers and contract research organisations will benefit from faster clearances.
Environment and Energy
8. India withdraws bid to host COP33
The government announced on 7 May that India has formally withdrawn its candidature to host the 2028 UN Climate Change Conference (COP33). The external affairs ministry said various factors were considered in the decision, but stressed that India remains “fully committed” to its climate and sustainability goals. Prime Minister Modi, who had earlier offered to host, said India’s focus is on implementing its National Action Plan on Climate Change. Observers speculate resource prioritisation or diplomatic considerations led to the decision. In parallel, India’s monsoon forecast remains concerning: a senior meteorologist told press that the 2026 monsoon is likely to be about 92% of its long-term average (historically low due to an El Niño projection). Meanwhile, record May heatwaves have already started, pushing power generation to two-year highs (peak demand around 270 GW expected this summer). The government is monitoring drought risks; states are urged to prepare for water scarcity and power shortages during the dry spell. Although India has stepped back from hosting COP, officials reaffirm emissions targets – including expanding renewable energy (solar/wind now above 16% of power mix) and increasing forest cover – to meet its Paris commitments.
Entertainment and Culture
9. Bollywood at Cannes 2026
– India’s presence at the Cannes Film Festival (May 12–23) was confirmed, with major celebrities arriving in Cannes on 7–8 May. Actress Aishwarya Rai Bachchan, along with Alia Bhatt and Aditi Rao Hydari, will attend as global ambassadors of L’Oréal Paris, adding Bollywood glamour to the festival. The stars, decked in designer outfits, will walk red carpets to promote women’s empowerment (L’Oréal is hosting its “Lights on Women’s Worth” awards at Cannes). Aishwarya and Alia, both experienced Cannes regulars, expressed excitement about celebrating female creativity on the international stage. Their appearances underscore India’s cultural soft power; industry insiders note this is the strongest Indian contingent at Cannes in years. Film projects from India are also being pitched at the market section. The event is being followed closely by fans and media in India, reflecting the growing global footprint of Bollywood talent. While not a political affair, the Indian delegation’s activities will be widely reported, highlighting India’s influence in global cinema.