How Iran war damaged ‘Brand Dubai’

For years, Dubai symbolised safety, tax efficiency and global ambition for Indian professionals. Now, Iranian drone strikes near residential areas have rattled that image. Expats who moved there for family support and stability say “Brand Dubai” has taken a hit, with sentiment and property prices likely to feel pressure.

The broader Gulf Cooperation Council, spanning the United Arab Emirates, Saudi Arabia and Qatar, has long marketed itself as a secure haven for capital and talent. The UAE alone hosts over 3.5 million Indians and remains a key remittance source. Yet, escalating tensions have forced Indian firms and families to reassess safety and contingency plans.

Even so, lawyers and advisors argue that the region’s low taxes, golden visas and business-friendly policies remain compelling. While short-term anxiety is real, many believe stability will eventually return, preserving the Gulf’s long-term economic appeal.

In today’s edition of Top of the Morning:

• Samsung walks away from Telecom PLI
• An energy crisis in snowless Kashmir
• Strait of Hormuz puts oil on the boil

THE MAIN STUFF

India’s GDP reset shows a smaller economy

India’s economy just shrank, statistically. Under the new 2022-23 base year series, Nominal GDP for FY26 is pegged at ₹345.47 trillion, about 3.3% lower than earlier estimates, after officials replaced proxy indicators with better survey data.

The sharpest cut is to private consumption, revised down 9.7–11.5% for FY23–FY26, challenging assumptions about demand strength. Services’ share has dipped, while manufacturing growth has been revised higher.

Importantly, discrepancies that once troubled the International Monetary Fund have narrowed. The reset improves credibility, but questions over deflators and measurement persist.

Samsung walks away from India’s telecom PLI

After thriving under India’s smartphone incentives, Samsung Electronics Co. Ltd. has exited the ₹12,195 crore telecom PLI scheme. The reason: weak domestic demand made local manufacturing of network gear unviable.

The government data shows that 16 of 42 approved applicants did not claim incentives, with only 15% of the scheme’s outlay disbursed as it nears closure.

Telecom equipment, unlike smartphones, is a B2B market dominated by a handful of buyers, limiting orders and investment appetite. While companies like Tejas Networks gained from large contracts, the broader scheme underscores how demand constraints can blunt manufacturing incentives.

A power crisis in snowless Kashmir

In Srinagar, winter now means waiting for electricity, not snow. As snowfall declines across J&K, a region powered by snow-fed rivers is confronting an energy squeeze.

Rainfall and snowfall were down 39% this winter, slashing river flows and cutting hydropower generation to barely a fraction of installed capacity.

With demand peaking, the government is spending thousands of crores on power imports. Scientists warn glacier retreat is eroding the natural water reserves that sustain projects run largely by National Hydroelectric Power Corporation. To plug the gap, authorities are racing to install rooftop solar under the PM Surya Ghar Muft Bijli Yojana. But experts say only a hybrid energy mix can secure Kashmir’s energy future.

Strait of Hormuz puts oil on the boil

Iran’s claim that it has closed the Strait of Hormuz has jolted energy markets, pushing Brent crude to $83.81 a barrel.

The move follows US and Israeli strikes, with Tehran’s Islamic Revolutionary Guard Corps targeting vessels and spooking shippers. A prolonged disruption could drive crude past $100, hitting major exporters like Saudi Arabia and the UAE, and big buyers such as India and China.

Yet, a full blockade would also choke Iran’s own oil lifeline to China. With US naval forces in the region, analysts see brinkmanship rather than a sustainable shutdown.

India sets first standards for AI economy, ethics

India has formally notified its first standards for cloud computing, data centres and AI ethics, aligning with global ISO and IEC frameworks. Issued under Bureau of Indian Standards rules, the norms define cloud terminology, set performance metrics such as cooling efficiency for data centres, and embed safeguards on privacy, fairness and transparency in AI systems.

Although not mandatory yet, the move lays the groundwork for future quality control. The timing is critical as India’s data-centre capacity is projected to surge sharply by 2030, driven by AI demand. Clear standards could anchor investor confidence while balancing innovation with accountability.

NEWS IN NUMBERS

$1 million: The amount the Washington Commanders have agreed to pay the District of Columbia to settle a 2022 lawsuit over allegedly deceiving fans about sexual misconduct and a hostile work environment.

$81 million: The amount the US Department of Labor is offering in grants under an initiative to train formerly incarcerated individuals for high-demand jobs and ease their re-entry into the workforce.

62.1%: The share of online spend in retail at SBI Card during the first nine months of FY26—up from 58.5% a year earlier, underscoring the shift to digital as the primary payment mode.

700: The number of ships gathered on both sides of the Strait of Hormuz as oil tanker traffic has nearly halted amid escalating conflict following US-Israel strikes on Iran.

₹60 crore Dabur’s investment through its new venture arm Dabur Ventures to acquire a minority stake in luxury skincare D2C brand RAS Beauty, marking its foray into the premium beauty segment.

3 lakh The number of third-party sellers in the Middle East facing shipment delays and order cancellations after Amazon shut its Abu Dhabi fulfilment centre amid escalating regional conflict.

2 The number of Iranian Su-24 jets shot down by Qatar's air force, marking the first crewed Iranian aircraft destroyed in combat since the conflict erupted last week.

AROUND THE WORLD

• The Iran war is rapidly engulfing the region
• Donald Trump’s case for war with Iran faces growing scrutiny
• OpenAI’s cash burn will be one of the big bubble questions of 2026
• Investors sell global bonds as Iran war stokes inflation worries
• Israel was ready to take on Hezbollah again. Now it can.

CHART OF THE DAY

India's power-guzzling AC season is upon us. According to Our World in Data, running a standard AC for just 44 minutes consumes as much electricity as an average Indian uses in an entire 24-hour period.

LOUNGE RECOMMENDS

Why we are struggling to sit with our feelings

In a world engineered for comfort, our ability to tolerate difficult situations and uncertainties is shrinking, leading to unresolved conflicts and unprocessed emotions. It's a pattern therapists describe as “experiential avoidance”.

WHAT THE FACT

A game that became capitalist icon

In 1903, when American feminist and anti-monopolist activist Lizzie Magie created a boardgame called The Landlord’s Game. Her goal was to demonstrate the dangers of land monopolies and promote economic reform ideas inspired by Henry George. Players were meant to see how property hoarding led to inequality.

Ironically, when the game evolved into Monopoly in the 1930s, it flipped the script. Instead of critiquing greed, it celebrated it, turning ruthless property accumulation into family fun and becoming one of the world’s most famous board games - Monopoly.

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