Tag: India

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India considers $1 bn EV incentive plan

India is exploring a proposal worth more than $1 billion to encourage private companies to switch to electric buses and trucks, in a major push to speed up clean transport adoption in the country.

The idea under discussion is to offer financial support to fleet operators so they can replace diesel-powered commercial vehicles with electric ones. This would include buses used for passenger transport as well as heavy trucks used for freight movement.

Officials are reportedly working on how best to structure the incentives so that companies find it easier to bear the high upfront cost of electric vehicles. The aim is to make the shift more practical for private operators, not just government-run transport systems.

The move comes at a time when global oil prices remain volatile due to geopolitical tensions, adding pressure on India’s import bill since the country depends heavily on imported crude. Reducing fuel consumption in the transport sector is seen as one of the most effective ways to lower long-term energy costs.

Commercial transport is a major source of fuel usage and emissions, especially in cities and logistics corridors. By targeting this segment, the government hopes to reduce pollution levels while also improving energy security.

India has already been supporting electric mobility through various schemes that cover electric buses, two-wheelers, and charging infrastructure. However, the new proposal is expected to focus more directly on private operators, which could significantly expand the scale of adoption.

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India seals oil and defence deals in UAE

India and the United Arab Emirates signed multiple agreements on fuel supply, defence cooperation and investment during Prime Minister Narendra Modi’s visit to Abu Dhabi.

A key agreement was signed on supplies of Liquified Petroleum Gas (LPG) to support India’s growing fuel demand. The two countries also signed an MoU on Strategic Petroleum Reserves to improve India’s emergency crude oil storage capacity and energy security.

India and the UAE further signed an Agreement on Framework for the Strategic Defence Partnership, aimed at strengthening bilateral strategic and security cooperation. The agreement includes collaboration in maritime security, military coordination and defence partnerships.

Another important MoU was signed for setting up a Ship Repair Cluster at Vadinar in Gujarat. Officials said the project would help improve maritime infrastructure and support shipping and logistics activities.

The UAE also announced investments worth around $5 billion in Indian infrastructure projects as well as investments in RBL Bank and Samman Capital. The investments are expected to boost infrastructure development and financial sector growth in India.

Officials said the agreements were signed at a time when global energy markets remain volatile due to tensions in West Asia. Analysts believe the deals could help India secure long-term fuel supplies and strengthen strategic ties with one of its key Gulf partners.

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Corporate

Iran conflict may slow India’s growth to 6.7%

India’s economic growth could slow to 6.7 percent in the current financial year due to rising global oil prices, weak consumer demand and uncertainty caused by the Iran conflict, according to a report by BMI, a Fitch Solutions company.

The report said escalating tensions in West Asia and higher crude oil prices are creating fresh challenges for the Indian economy. Since India imports a large portion of its crude oil requirements, any sharp increase in oil prices directly impacts inflation, import costs and government spending.

BMI warned that the recent surge in crude oil prices could increase fuel and transportation costs across sectors, putting pressure on businesses as well as household spending. Higher inflation may also reduce consumer demand, affecting overall economic activity.

The report noted that India’s growth had received support in recent years from tax cuts, strong government spending and infrastructure projects. However, that support is now beginning to fade, while global economic uncertainty continues to rise.

Economists said higher oil prices could also widen India’s current account deficit and put pressure on the rupee. Rising import bills may affect fiscal stability if crude prices remain elevated for a long period.

Despite the expected slowdown, India is still projected to remain one of the world’s fastest-growing major economies. Analysts believe government infrastructure spending, manufacturing growth and strong domestic demand could continue supporting the economy in the medium term.

The report comes at a time when global markets are closely watching developments in West Asia, particularly tensions involving Iran and disruptions in oil supply chains. Financial markets have already turned volatile due to fears of prolonged geopolitical instability.

BMI said India’s growth outlook will largely depend on global crude oil trends, inflation control measures and the government’s ability to maintain economic momentum amid external challenges.

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PM Modi urges pause in gold buying

Prime Minister Narendra Modi’s call urging Indians to avoid buying gold for a year has brought attention to the economic impact of the country’s massive dependence on gold imports. The appeal comes amid record-high gold prices and growing concerns over India’s widening trade deficit.

India remains one of the world’s largest gold consumers, importing the majority of its demand from overseas markets. Economists say rising gold imports increase pressure on foreign exchange reserves and weaken the rupee, especially at a time when crude oil prices are also climbing sharply.

The government’s concern is linked to the current account deficit, which expands when import bills rise faster than exports. Analysts note that high gold purchases during weddings and festive seasons significantly contribute to the import burden. With global gold prices continuing to rally due to geopolitical tensions and inflation concerns, India’s import costs have increased substantially.

Industry experts believe the Prime Minister’s statement is aimed at encouraging households to shift savings towards financial instruments instead of physical gold. Financial planners argue that excessive household allocation to gold limits productive capital flow into equities, mutual funds and banking products.

The jewellery industry, however, expects demand to remain resilient despite higher prices. Companies such as Titan and Senco Gold have indicated that wedding-related buying continues to support sales, although consumers are increasingly opting for lightweight jewellery and exchange schemes to manage costs.

Market observers say the government is trying to reduce non-essential imports at a time when the rupee is under pressure against the US dollar. A sustained rise in gold and crude oil imports could further strain India’s macroeconomic indicators in the coming months.

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₹30,000 cr blow to state-run oil firms in India

Indian oil marketing companies are facing heavy financial pressure as rising global crude prices continue to increase losses. Reports estimate that state-run firms are losing around ₹30,000 crore every month while keeping petrol and diesel prices unchanged.

The surge in crude prices has been linked to ongoing tensions in the Middle East, raising concerns over possible supply disruptions in the global energy market. Despite higher import costs, oil companies have not increased retail fuel prices in India.

Companies including Indian Oil, Bharat Petroleum and Hindustan Petroleum are reportedly bearing the burden to maintain price stability for consumers. Industry experts say this has resulted in major under-recoveries for the firms.

India depends heavily on imported crude oil, and any sharp rise in international prices directly impacts fuel companies and the economy. Economists say stable fuel prices help control inflation and reduce pressure on transport and daily expenses.

However, analysts warn that continued losses may become difficult to sustain if global oil prices remain elevated for a longer period.

The government has not yet announced any relief measures, but discussions are reportedly underway as companies continue to face mounting pressure.

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India hits record $863 bn export growth in FY26

India recorded its highest-ever annual exports in the financial year 2025-26, with total exports touching a record $863 billion. The strong performance came despite global economic uncertainty, geopolitical tensions, and slower growth in international trade.

The biggest support came from the services sector, which continued to perform strongly throughout the year. Exports of services such as IT, software, consulting, business support, and digital solutions grew by nearly 8.7%, helping India offset weakness in some merchandise categories.

Officials said the growth reflects the increasing global demand for Indian talent and technology-based services. Indian companies continued to provide digital and business solutions to clients worldwide, even as many economies faced inflation pressures and slowing consumer demand.

Merchandise exports, including engineering goods, electronics, pharmaceuticals, and chemicals, also remained stable. While some sectors faced pressure due to weak global demand and supply-chain disruptions, India managed to maintain overall export momentum.

The final export figures were revised upward after updated services trade data became available. Earlier estimates had projected slightly lower numbers, but the revised data confirmed a new export record for the country.

The achievement is also seen as a positive sign for India’s broader economic growth. Strong exports help bring foreign exchange into the country, support employment, and improve business activity across sectors.

The government has also been working to strengthen trade relationships with multiple countries and push new trade agreements to increase market access for Indian businesses.

Over the past few years, India’s technology and digital industries have expanded rapidly, making the country a key global provider of IT and business services. Industry experts believe these efforts could further boost exports in the coming years.

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Beyond

India rolls out test of real-time disaster alert system

If your phone suddenly made a loud alert sound recently, you were not alone. The government carried out a nationwide test of a new emergency alert system, sending a message marked “extremely severe” to mobile users across India.

The alert was part of a trial run of the Cell Broadcast System, a technology built to deliver real-time warnings during disasters. While the message caught many people off guard, officials later confirmed that it was only a test and no action was needed.

The system is designed to improve how quickly people are informed during emergencies such as floods, earthquakes, cyclones, or other crises. Instead of sending individual text messages, it broadcasts alerts to all phones in a particular area at once.

This approach has a key advantage,  it works even when networks are busy or overloaded, which is often the case during emergencies. It also does not require users to install apps or register for alerts, making it more accessible.

The government says the system has been developed locally and is part of a larger effort to strengthen disaster response across the country. Future alerts are expected to be available in multiple languages to reach a wider population.

The recent test also helped authorities understand where improvements are needed. Some users said they did not receive the alert, highlighting areas where coverage can be enhanced.

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India plans to relax FDI rules for China-linked firms

India is planning to ease foreign direct investment (FDI) rules for overseas companies that have a small exposure to Chinese firms, in a move aimed at attracting more global investments.

Under the proposed change, foreign companies with up to 10% stake from Chinese entities may face fewer restrictions when investing in India. The final notification is expected soon from the Department of Economic Affairs.

The move comes as India looks to speed up approvals and make it easier for global businesses to invest, especially in key sectors. Current rules, introduced in 2020, require stricter scrutiny of investments linked to countries sharing land borders with India, including China.

Officials say the new approach will help remove delays for companies where Chinese ownership is minimal, without compromising on security concerns.

At the same time, investments with higher Chinese stakes are likely to continue facing tighter checks.

The step is seen as an effort to strike a balance, encouraging foreign investment and economic growth, while still keeping a close watch on sensitive inflows.

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India cuts export duty on diesel, jet fuel

India has reduced export duties on diesel and aviation turbine fuel (ATF), offering some relief to refiners as global oil prices remain volatile. The new rates came into effect on May 1.

Export duty on diesel has been brought down to ₹23 per litre from ₹55.5, while jet fuel duty has been reduced to ₹33 per litre from ₹42. There is no export duty on petrol. Despite these changes, taxes on fuels sold within the country remain unchanged.

The decision comes at a time when global crude oil prices have surged due to ongoing geopolitical tensions and supply concerns, particularly in West Asia. As a major importer of crude oil, India is sensitive to such fluctuations, which can impact both fuel availability and pricing.

Earlier, the government had raised export duties to ensure enough fuel stayed within the country and to prevent companies from exporting more for higher profits. The latest move signals a shift, allowing refiners more flexibility while still keeping domestic supply stable.

For consumers, there is no immediate impact, as petrol and diesel prices at the pump remain steady. The government has maintained these rates to avoid passing on the burden of rising global prices to the public.

The changes also come as the aviation sector faces higher fuel costs, with ATF being a major expense for airlines. Lower export duties may help ease some of the pressure on fuel supply and pricing.

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India’s forex reserves rise above $703 bn

India’s foreign exchange reserves have climbed to $703.3 billion, continuing a steady upward trend and strengthening the country’s financial buffer against global uncertainties.

According to the latest Reserve Bank of India data, the reserves increased by around $2.3 billion in the week ending April 17, 2026. The rise reflects a mix of valuation gains and stable external inflows.

The biggest contribution came from foreign currency assets, which make up the bulk of India’s reserves. These assets include holdings in major global currencies such as the US dollar and euro, and their value often changes with global currency movements and central bank operations.

Gold holdings also played a role in the increase. India’s gold reserves have seen a gradual rise in value in recent months, supported by higher global gold prices and consistent accumulation by the central bank. This has added another layer of stability to the overall reserves.

Other components, including Special Drawing Rights and India’s position with the International Monetary Fund, remained largely unchanged during the period.

The latest increase comes after some fluctuations earlier this year, when global uncertainties such as geopolitical tensions and changes in oil prices affected reserve levels. However, the recent trend shows a recovery and steady build-up.

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