Note on recent political-economic developments

The Office Bearers adopted this note with Circular 01/2026. War and blockade in the energy lanes have lifted fuel, fertiliser, electricity and food prices. The IEA has called the Hormuz shock one of the largest energy crises on record. Wages have not moved with prices.

India remains dependent on imported crude. The rupee has been under pressure. Household debt has risen while household savings have fallen. Austerity speech from the Centre asks working people to consume less while corporate earnings continue.

After the Assembly results the Labour Codes have entered implementation. The note records the loss of the LDF government in Kerala and the BJP government in West Bengal, and the harder ground that follows for unions.

The Centre’s instruction is the 10th Conference line: consolidate the unions, take the politics to every member, remain visible on the street.