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The World This Week | US armada moves closer to Iran, India-EU ink ‘mother of all deals’, and Xi purges top PLA General

From India and the European Union inking a Free Trade Agreement to the looming threat of a US-Iran military conflict in West Asia, here is a look at some of the major events this week.

The World This Week | US armada moves closer to Iran, India-EU ink ‘mother of all deals’, and Xi purges top PLA GeneralPrime Minister Narendra Modi with European Council President Antonio Costa, left, and European Commission President Ursula von der Leyen, right, during their meeting at the Hyderabad House, in New Delhi, Tuesday, Jan. 27, 2026. (PTI Photo/Salman Ali)

Congratulations on making it through the extremely turbulent first month of 2026. But if you thought the world was getting any better after a tumultuous January that saw the sitting president of a country being kidnapped, the bloodiest uprising in the history of post-Islamic Revolution Iran, and the US almost going to war with its NATO ally Denmark to take control of Greenland, we have some not-so-good news for you.

While the massive protests in Iran may have died down, for now, the Ayatollah and his men are gearing up to face an even bigger existential threat – a US invasion, which could happen any time now. This week also saw a major reset in the ‘old world order’ as India and the EU signed the highly anticipated trade deal. China also scored a major victory in the international arena as Beijing signed key diplomatic and trade deals with the UK, much to the annoyance of Donald Trump, who was already miffed by the USA’s next-door neighbour, Canada, getting closer to the Asian powerhouse.

Iran prepares for war as US armada approaches

Internet services were cut off in Iran on January 8 as the regime moved to crush the unprecedented anti-government protests that had gripped the country. In the next two days, the Iranian regime is believed to have unleashed a brutal crackdown on the protests, in which anywhere from 6,000 to more than 30,000 demonstrators have been killed. 

The World This Week | US armada moves closer to Iran, India-EU ink ‘mother of all deals’, and Xi purges top PLA General Women walk along the sidewalk in northern Tehran, Iran, Tuesday, Jan. 27, 2026. (AP Photo/Vahid Salemi)

While the Ayatollah and the government of President Masoud Pezeshkian survived the biggest uprising since the Islamic Revolution in 1979, they have a bigger challenge waiting for them.

USS Abraham Lincoln strike group

Last week, US President Donald Trump announced that a “beautiful armada” was heading toward Iran. Trump was referring to the USS Abraham Lincoln aircraft carrier strike group. Abraham Lincoln, the Nimitz-class nuclear-powered supercarrier, has a capacity to accommodate around 5,680 personnel and to carry up to 90 aircraft, including F-35C Lightning II stealth fighters, F/A-18E/F Super Hornets, EA-18G Growlers, E-2D Hawkeyes, and MH-60R/S Sea Hawk helicopters.

USS Abraham Lincoln strike group A man rows past the USS Abraham Lincoln as it deploys from San Diego Naval Air Station North Island in San Diego, California, U.S., January 3, 2022. (Photo: REUTERS/Mike Blak)

USS Abraham Lincoln currently has its Automatic Identification System (AIS) turned off to hide its exact location and is accompanied by three Arleigh Burke-class guided-missile destroyers as part of the strike group.

USS Frank E Petersen Jr

USS Spruance

USS Michael Murphy

Iranian response

Though the US has not formally announced any plans to invade Iran, with the current military build-up, analysts believe, it is just a matter of when and not if. The mood in Iran is no different, and the government and the Islamic Revolutionary Guard Corps are preparing for an inevitable US military intervention. It has also been reported that President Pezeshkian has already deputed some governance tasks to regional governors. Iran has vowed to retaliate with everlasting consequences to the US and its regional allies in the Middle East.

US vs Iran military strengths

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Since its conventional weapons and air defence systems are no match for the US military might, Iran is digging in its heels, relying on its kamikaze drones, its Shahed and Arash class UAVs that have been battle-tested in conflicts around the world.

What US could do in Iran

According to analysts, the US could carry out a decapitation strike targeting even Ayatollah Ali Khamenei, the top leadership of the government and the military, and let the regime collapse in the chaos. While most agree that it is not going to be an easy operation like what the US did in Venezuela, others say the military build-up could be used as a pressure tactic and a sign to the protesters to hit the streets once again to topple the government in an uprising. There are also reports that the US would take out what remains of Iran’s nuclear programme after last year’s strike, in the initial hours of any operation, leaving the regime further on the backfoot.

India, EU sign ‘mother of all deals’

On January 27, a day after marking its 77th Republic Day, India signed a landmark Free Trade Agreement (FTA) with the European Union (EU). European Commission President Ursula von der Leyen called the FTA, which was in the making for nearly 20 years, the “mother of all deals”.

The World This Week | US armada moves closer to Iran, India-EU ink ‘mother of all deals’, and Xi purges top PLA General In this image posted on Jan. 27, 2026, Prime Minister Narendra Modi and European Commission President Ursula von der Leyen during the India-EU Business Forum, in New Delhi. (@MEAIndia/X via PTI Photo)

Scope of India-EU FTA

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The India-EU FTA will create one of the world’s largest free-trade zones, and covers roughly 2 billion people and 25 per cent of global GDP. The agreement must now be ratified by the European Parliament and all 27 EU member states. It is expected to become fully operational by early 2027.

Once the India-EU FTA comes into effect, the EU will remove tariffs on 99.5 per cent of Indian exports, and India will eliminate or reduce duties on 96.6 per cent of EU exports.

What gets cheaper

Among the goods that are set to get cheaper under the India-EU FTA are:

European luxury cars (above Rs 16 lakh for 2,50,000 vehicles per year)

Wine (from 150 per cent to 20-30 per cent)

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Spirits (from 150 per cent to 40 per cent) Beer (from 110 per cent to 50 per cent)

Processed foods (from 50 per cent to 0 per cent)

Medical and surgical equipment (from 27.5 per cent to 0 per cent)

Pharmaceuticals (from 11 per cent to 0 per cent)

Indian sectors that would gain

The EU-India FTA will also be a boost for Indian exports, with major beneficiaries being textiles, apparel, leather, footwear, and gems and jewellery, which will gain zero-duty access to the European market.

Another key gain for India is easy mobility and migration for students and skilled workers in the EU.

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Xi Jinping purges top PLA General

Over the weekend, China announced that General Zhang Youxia, the most senior uniformed officer in the country, has been removed from his duties. According to China’s Ministry of National Defense, General Zhang was being investigated for “suspected serious violations of discipline and law”.

Who is General Zhang Youxia

General Zhang was first-ranked vice chairman of the Central Military Commission (CMC) and subordinate only to Xi in the PLA’s ranks. General Zhang was once Xi’s closest ally, and the two had known each other since childhood, making his removal even more surprising.

Xi Jinping purges top PLA General General Zhang was first-ranked vice chairman of the Central Military Commission. (Photo: Reuters)

Allegations against General Zhang Youxia

He has been accused of leaking “core technical data” regarding China’s nuclear weapons programme to the United States. While this is the official version, some reports said that General Zhang was becoming too powerful and could challenge Xi for the CCP’s leadership. General Zhang was allegedly forming “political cliques” and abusing his authority within the military high command.

PLA without an experienced leader

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Along with General Zhang, another lead figure, General Liu Zhenli, the PLA Chief of the Joint Staff, has also been removed. This has left the CMC, which used to have seven members, with just two, Xi and General Zhang Shengmin. In recent years, China has carried out several rounds of purges in the CCP and the PLA, on charges of corruption.

The World This Week | US armada moves closer to Iran, India-EU ink ‘mother of all deals’, and Xi purges top PLA General A China’s People’s Liberation Army (PLA) soldier stands guard at a doorway ahead of a press briefing by China’s Ministry of National Defense spokesperson Jiang Bin, in Beijing, China, Thursday, Jan. 29, 2026. (AP Photo/Andy Wong)

In 2024, it was reported that corruption had reached such depths in the PLA that missiles were filled with water instead of fuel, and missile silo lids were non-functional, raising serious questions about the combat readiness of the world’s largest army.

Can China still invade Taiwan in 2027

General Zhang’s removal is yet another blow to Xi, as it was widely expected that China could invade Taiwan as early as 2027. Despite being the world’s largest army, the PLA has not been involved in a real-world conflict in a very long time. General Zhang, who fought in the Sino-Vietnamese War of 1979 and the Battle of Laoshan in 1984, was one of the few PLA generals in China with war experience. General Zhang’s abrupt removal also means that if China still goes ahead with its plans to invade Taiwan in 2027, the PLA will be led by an inexperienced general.

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