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India crosses 300 GW clean energy mark

India has crossed the 300 GW mark in installed non-fossil fuel-based electricity generation capacity, marking a significant step in its clean energy transition. The country’s total non-fossil capacity reached 300.50 GW as of July 31, 2026, putting India beyond 60 per cent of its target of having 500 GW of non-fossil power capacity by 2030.

The milestone highlights the rapid expansion of renewable energy in India, particularly solar power and wind energy. Solar has emerged as the main engine of the country’s clean energy growth, supported by rising investments, large-scale projects and government policies aimed at expanding renewable generation.

According to the latest capacity figures, solar power accounts for 164.59 GW of India’s installed non-fossil capacity. Wind power contributes 58.14 GW, while large and small hydro projects together account for 57.24 GW. Bio-power contributes another 11.75 GW, while nuclear power accounts for 8.78 GW. Together, these sources have taken total non-fossil installed capacity to 300.50 GW.

The achievement is particularly notable because India‘s clean energy capacity has expanded rapidly over the past decade. Solar capacity, for example, has grown from only about 2.8 GW in 2014 to nearly 165 GW now. Wind power capacity has also increased substantially, reaching more than 58 GW from around 21 GW in 2014.

The pace of additions has accelerated in recent years. During 2025-26, India added a record 55.29 GW of non-fossil fuel-based electricity capacity. Solar power accounted for about 44.6 GW of those additions, while wind contributed around 6 GW. The figures underline how strongly solar energy is driving India’s renewable energy expansion.

The 300 GW milestone also brings India closer to its broader 2030 energy ambitions. The government has set a target of 500 GW of non-fossil fuel-based installed electricity capacity by 2030. With 300.50 GW already installed, the country has completed more than three-fifths of that target.

This means India now needs to add roughly 200 GW of additional non-fossil capacity over the next few years to reach the 500 GW goal. The scale of the remaining requirement is substantial, but the recent pace of capacity additions provides some indication of the momentum behind the clean energy push.

The expansion is not limited to solar and wind. Hydropower continues to form an important part of India’s non-fossil electricity mix because it can provide relatively flexible generation and support grid stability. Nuclear power, although smaller in installed capacity, is also expected to play a role in the country’s longer-term low-carbon electricity strategy.

India’s clean energy transition is being driven by several objectives at the same time. Increasing renewable energy capacity can help reduce dependence on fossil fuels, improve energy security and support efforts to lower carbon emissions. For a country with rapidly growing electricity demand, expanding domestic sources such as solar, wind and hydropower is also important for meeting future power requirements.

The shift is taking place as India’s electricity demand continues to rise alongside economic growth, industrial expansion and greater electrification. The challenge for policymakers is therefore not simply to add renewable capacity, but also to ensure that the electricity grid can absorb and distribute growing volumes of variable renewable power.

Solar and wind generation can fluctuate depending on weather conditions and the time of day. This makes transmission infrastructure, battery storage, pumped hydro storage and other grid-balancing solutions increasingly important as India’s renewable energy share rises.

The Central Electricity Authority’s longer-term planning also points to a much larger role for non-fossil sources. Its National Generation Adequacy Plan projects that India’s installed power capacity could reach about 1,121 GW by 2035-36, with non-fossil sources accounting for around 70 per cent of the total. The plan includes substantial growth in solar, wind, large hydro, nuclear and energy storage.

Solar manufacturing is another important part of the clean energy story. India’s rapidly expanding solar installations have increased demand for photovoltaic modules, cells and other components. The government is also looking to strengthen domestic manufacturing, including efforts to develop polysilicon capacity and reduce vulnerabilities in the solar supply chain.

For the renewable energy industry, the crossing of the 300 GW mark is therefore more than a numerical milestone. It reflects a broader transformation in India’s power sector, where renewable sources are becoming increasingly central to future capacity planning.

At the same time, reaching 500 GW by 2030 will require sustained investment and faster project execution. Land availability, transmission connectivity, financing, equipment supply and integration of renewable power into the grid will remain important issues.

The next phase of India’s energy transition is likely to focus increasingly on combining renewable generation with storage and stronger transmission networks. This will help ensure that the country’s growing solar and wind capacity can translate into reliable electricity supply throughout the day.

India’s crossing of 300 GW of non-fossil capacity marks a significant point in that journey. With solar power leading the expansion and wind, hydro and nuclear providing additional support, the country has now moved beyond 60 per cent of its 2030 non-fossil capacity goal. The challenge ahead will be to maintain this momentum while building the infrastructure needed for a more renewable-heavy power system.

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RBI likely to hold repo rate amid inflation risks

The Reserve Bank of India (RBI) is widely expected to keep the repo rate unchanged at its upcoming monetary policy review, as policymakers balance relatively comfortable domestic inflation with rising risks from global price pressures. The decision comes at a time when several major central banks are reassessing their interest-rate paths as inflation risks remain persistent.

The RBI’s Monetary Policy Committee (MPC) is scheduled to announce its latest policy decision this week. Market participants are largely expecting the central bank to maintain the repo rate at 5.50%, following the sizeable rate cuts delivered earlier this year.

The focus, however, is likely to be less on the rate decision itself and more on the RBI’s assessment of inflation, growth and the changing global economic environment. A pause would allow policymakers to assess how earlier rate reductions are affecting borrowing costs, demand and economic activity before deciding whether further easing is appropriate.

India’s inflation picture has provided the RBI with some room to support economic growth. Consumer price inflation has remained relatively contained compared with the levels seen in recent years. However, policymakers are becoming increasingly cautious about risks that could push prices higher in the months ahead.

Global developments are a major part of that concern. Higher energy prices, geopolitical tensions, currency movements and changes in trade policies can quickly feed into domestic inflation. Any sustained increase in crude oil prices, in particular, could raise transportation and production costs across the Indian economy.

The Indian rupee is another factor the central bank will be watching closely. A weaker rupee can make imported commodities, including crude oil, more expensive. That can create additional inflationary pressure at a time when the RBI is trying to keep price growth firmly under control.

The global interest-rate environment has also become more complicated. While India has moved towards lower borrowing costs, some overseas central banks are facing renewed inflation concerns and may have to maintain or even tighten monetary policy. This divergence can influence capital flows, bond yields and currency markets.

For the RBI, the challenge is to support economic growth without creating conditions that could reignite inflation. Lower interest rates generally encourage borrowing and investment by reducing the cost of loans. They can also support consumption by making home, vehicle and personal loans more affordable.

At the same time, keeping rates too low for too long can create demand-side pressure and make it harder to respond if inflation begins to rise. The central bank therefore has to balance growth with its mandate of maintaining price stability.

The banking and financial markets will also be watching the RBI’s liquidity stance and its comments on financial conditions. While the repo rate is the headline policy tool, liquidity management plays an important role in determining how quickly changes in monetary policy reach borrowers and businesses.

For households, an unchanged repo rate would mean no immediate policy-driven change in floating-rate loans. Borrowers with home loans linked to external benchmarks such as the repo rate would therefore not see another automatic reduction in their lending rates simply because of the latest policy review.

For businesses, the picture is slightly broader. Companies have benefited from lower financing costs as interest rates have eased, but investment decisions depend on more than borrowing costs. Demand conditions, input prices, exports, global trade and consumer confidence will also influence corporate spending.

The RBI is also expected to remain attentive to food inflation. Although headline inflation may appear comfortable, sudden increases in food prices can affect household budgets and influence inflation expectations. Weather conditions, crop output and supply disruptions can therefore remain important variables for the central bank.

The policy decision comes at a crucial point for India’s economy. Growth remains relatively resilient, but policymakers are operating in an uncertain global environment. Geopolitical tensions, shifting trade relationships and volatile commodity markets have made the outlook harder to predict.

A pause in the repo rate would give the RBI time to evaluate these developments without committing itself to either further rate cuts or a tightening cycle. The central bank could retain flexibility to respond if inflation moves sharply in either direction.

Economists and investors will therefore pay close attention to the language used by the MPC rather than simply the rate announcement. Any indication that the RBI is becoming more concerned about inflation could influence bond yields, equity markets and the rupee. On the other hand, a more growth-friendly tone could revive expectations of future rate cuts.

The decision will also matter for financial markets because investors are increasingly comparing India’s monetary-policy direction with that of major global economies. If overseas central banks remain cautious or turn more hawkish while the RBI keeps rates steady, interest-rate differentials could become an important factor for foreign investment flows.

For now, the broad expectation is that the RBI will stay on hold and allow previous policy measures to work through the economy. The central bank’s next moves will depend heavily on the inflation trajectory, domestic growth momentum and the risks emerging from the global economy.

The message from the policy review is therefore likely to be one of caution. With inflation risks still visible despite a relatively benign domestic price environment, the RBI may prefer to wait for clearer evidence before making another move on interest rates.

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Industrial output in India surges 7.3% in June

India’s industrial sector delivered a strong performance in June, with factory output growing at its fastest pace in nearly two years. According to data released by the Ministry of Statistics and Programme Implementation (MoSPI), the Index of Industrial Production (IIP) expanded 7.3% year-on-year in June, marking a sharp improvement from the revised 5% growth recorded in May. It is also significantly higher than the 2.2% growth seen in June last year, reflecting broad-based strength across key sectors of the economy.

The June reading is the highest industrial growth rate in 22 months, signalling that manufacturing activity is gaining momentum despite continued uncertainty in the global economy. The latest numbers suggest domestic demand remains healthy, businesses are investing in expanding capacity, and government-led infrastructure spending continues to support industrial activity.

The biggest contributor to the robust growth was the manufacturing sector, which accounts for nearly four-fifths of the country’s industrial output. Manufacturing production rose 7.8%, indicating increased factory activity across several industries. The improvement points to stronger demand for consumer products, machinery, transport equipment and other manufactured goods.

The electricity sector also recorded impressive growth of 10.6%, supported by higher power consumption from industries, businesses and households. Increased electricity generation often reflects expanding economic activity, as factories require more energy to meet rising production levels.

Meanwhile, the mining sector posted a modest 1% increase, recovering from a contraction in the previous month. Though mining growth remained slower than the other sectors, it added positively to the overall industrial performance.

Another encouraging indicator was the strong rise in capital goods production, which climbed 14.2% during June. Capital goods include machinery and equipment used to produce other goods and services. Economists closely watch this category because it reflects fresh investments by companies. Rising capital goods output generally indicates that businesses are confident enough to expand production capacity, creating a stronger foundation for future economic growth.

Consumer demand also remained healthy during the month. Production of consumer durables, such as home appliances, electronic goods and automobiles, grew 7.7%, suggesting households continue to spend despite inflationary pressures. Better income prospects, easier access to credit and improving consumer confidence have supported demand for these products.

The June data exceeded market expectations. Most economists had projected industrial production to grow by around 5.7%, making the actual outcome a positive surprise. Analysts believe stronger domestic demand, improved manufacturing activity and sustained public investment helped drive the better-than-expected performance.

Government spending on infrastructure continues to play an important role in supporting industrial growth. Investments in roads, railways, airports, housing and other public projects have increased demand for steel, cement, machinery and construction materials. This has created opportunities for manufacturers and suppliers across multiple industries.

The latest industrial production figures also reflect the impact of policy measures aimed at strengthening India’s manufacturing base. Programmes such as the Production Linked Incentive (PLI) scheme have encouraged companies to expand production in sectors including electronics, pharmaceuticals, automobiles and renewable energy equipment. These initiatives are gradually contributing to higher factory output and investment.

June’s figures were released under the revised IIP series, which now uses 2022-23 as the base year instead of 2011-12. The revised methodology also shifts from wholesale prices to producer prices, providing a more accurate picture of industrial activity in line with international statistical standards. Officials believe the updated framework better reflects the current structure of India’s economy.

The encouraging June performance also lifted industrial growth for the first quarter of the current financial year. During the April-June period, industrial production expanded 5.8%, compared with 3.4% in the corresponding quarter last year. The improvement suggests the economy has begun FY2026-27 on a stronger footing.

Despite the positive trend, economists remain cautious about potential risks. Global trade tensions, volatile crude oil prices, geopolitical uncertainties and disruptions caused by extreme weather could affect manufacturing activity in the coming months. Export-oriented industries may also face challenges if demand weakens in major international markets.

However, India’s industrial sector continues to benefit from relatively strong domestic consumption, improving investment activity and supportive government policies. The combination of higher factory output, rising capital expenditure and stronger electricity generation indicates that economic activity remains resilient.

Analysts believe sustaining this momentum will depend on continued infrastructure investment, stable inflation, adequate availability of raw materials and supportive financial conditions. If these factors remain favourable, manufacturing is expected to remain one of the key drivers of India’s economic growth during the current financial year.

The June industrial production numbers reinforce confidence that India’s economy continues to expand steadily. With manufacturing leading the recovery, investment gathering pace and domestic demand holding firm, the industrial sector appears well positioned to support broader economic growth in the months ahead.

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India, UK seal CETA

India and the United Kingdom have signed the Comprehensive Economic and Trade Agreement (CETA), marking a major milestone in their economic partnership. The landmark pact is expected to increase bilateral trade, attract fresh investments and create new opportunities for businesses and workers in both countries.

The agreement aims to raise two-way trade to nearly $100 billion by 2030, with officials and industry leaders describing it as one of India’s most significant bilateral trade deals in recent years. It is expected to reduce trade barriers, improve market access and make it easier for companies to do business across both markets.

For Indian exporters, the deal opens duty-free or lower-duty access to the UK for products including textiles, garments, leather goods, engineering products, auto components, marine products, gems and jewellery. These labour-intensive sectors are expected to benefit from stronger demand, potentially leading to higher production and more employment.

Indian consumers, meanwhile, are likely to see lower prices on a range of premium British products as import duties are reduced in phases. Items such as Scotch whisky, gin, luxury cars, chocolates, cosmetics and selected consumer goods are expected to become more affordable over time.

The agreement is also expected to encourage British companies to invest more in India. Sectors such as manufacturing, financial services, clean energy, technology and innovation are likely to attract greater investment as the pact provides businesses with improved certainty and a more predictable trade environment.

Trade experts say the agreement goes beyond tariff reductions. It includes measures to simplify customs procedures, improve regulatory cooperation and strengthen supply chains, making it easier for businesses—especially small and medium enterprises—to expand into new markets.

For millions of people, the impact could be felt in everyday life. Export-oriented industries may create more jobs, consumers could enjoy a wider choice of products at competitive prices, and businesses may find it easier to collaborate across borders.

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India, Japan unite for UNICORN naval project

India and Japan have launched their first joint defence technology project by agreeing to co-develop the UNICORN (Unified Complex Radio Antenna) system for Indian Navy warships.

The advanced antenna combines multiple communication and surveillance systems into a single integrated mast, helping ships become harder to detect on enemy radar while improving operational efficiency.

The project will be jointly developed with Japanese technology and manufactured in India, marking a major step in defence cooperation between the two countries. Announced during the India-Japan summit in New Delhi, the agreement reflects growing strategic trust and supports a shared vision for a secure, stable and rules-based Indo-Pacific.

The partnership also signals closer collaboration in advanced defence technologies and maritime security.

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June GST collections rises by 13.9%

India’s gross Goods and Services Tax (GST) collections rose to ₹1.94 lakh crore in June, registering a 13.9 per cent year-on-year growth, reflecting robust domestic demand, higher imports and continued improvement in tax compliance.

The increase was largely driven by healthy economic activity across sectors. GST revenue from domestic transactions recorded strong growth, indicating sustained consumer spending and business momentum. Meanwhile, GST collected on imports stood at ₹60,038 crore, highlighting the steady pace of overseas trade and its contribution to government revenues.

After adjusting for refunds, net GST collections also posted a healthy increase, underlining the resilience of the Indian economy despite an uncertain global environment. The latest figures suggest that consumption and business activity remained strong through June, providing another positive signal for economic growth.

The latest numbers are also expected to provide the government with greater fiscal room to continue investing in infrastructure, public services and development projects while maintaining fiscal discipline.

Economists said the consistent rise in GST collections reflects the expanding formal economy, better compliance by taxpayers and the growing use of digital systems such as e-invoicing and online tax filing. These reforms have improved transparency and helped strengthen revenue collections over the past few years.

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India’s exports hit six-month high in May

India’s trade deficit widened in May even as exports recorded their strongest performance in six months, reflecting the growing impact of higher imports on the country’s external trade balance.

Merchandise exports increased 18% from a year earlier to about $43.4 billion, supported by healthy demand for engineering products, electronics, chemicals and pharmaceuticals. The rise marked the highest monthly export figure in six months and signalled improved momentum in overseas shipments.

Despite the strong export performance, imports rose even more sharply to nearly $70 billion. Increased purchases of crude oil, gold, electronic goods and industrial raw materials pushed import bills higher and expanded the trade deficit to approximately $26.4 billion.

For policymakers, the figures present a mixed picture. On one hand, stronger exports point to resilience among Indian manufacturers and exporters. On the other, the widening trade gap highlights India’s dependence on imported commodities and consumer goods.

The export sector has benefited from improved global demand and efforts to diversify markets. Exporters have also expanded shipments in sectors where India enjoys a competitive advantage, helping offset uncertainties in parts of the global economy.

Economists noted that a higher trade deficit does not necessarily signal weakness if it is accompanied by strong economic growth. However, sustained increases in imports could influence the country’s current account position and currency dynamics.

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Retail inflation edges up to 3.93% in May

India’s retail inflation accelerated to 3.93 per cent in May from 3.16 per cent in April, driven largely by an increase in food prices, according to official data released on Thursday.

The rise marks the first increase in consumer inflation in several months, although the figure remains below the Reserve Bank of India’s medium-term target of 4 per cent. The latest reading was also lower than market expectations of a sharper increase, offering some relief to policymakers and investors.

Food prices were the main contributor to the uptick, with inflation in key categories such as vegetables and other essential commodities showing signs of firming up after recent moderation. Economists said the trend reflects lingering supply-side pressures and seasonal factors affecting food costs.

Despite the increase, inflation remains well within the RBI’s comfort zone, supporting the central bank’s focus on boosting economic growth. Earlier this month, the RBI lowered interest rates and adopted a more growth-oriented policy stance amid easing inflationary pressures.

However, economists cautioned that risks remain. Rising global crude oil prices, weather-related disruptions and fluctuations in food supplies could exert upward pressure on prices in the coming months. The progress of the monsoon season will be closely watched, given its impact on agricultural output and food inflation.

For businesses and consumers, the data signals a relatively stable inflation environment, though concerns over input costs and commodity prices persist. Analysts said a sustained rise in food inflation could influence consumption patterns and affect household spending.

The latest inflation figures are unlikely to trigger an immediate shift in monetary policy, but they reinforce the need for continued monitoring of price trends. Markets will now look to upcoming economic data for clues on whether inflation remains contained or begins to move higher in the second half of the year.

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US overtakes Gulf as India’s top gas supplier

The United States has emerged as India’s largest supplier of liquefied natural gas (LNG) and liquefied petroleum gas (LPG), overtaking traditional Gulf exporters as disruptions in West Asia reshape global energy trade.

The change comes after conflict involving Iran affected shipping routes through the Strait of Hormuz, a key passage for energy supplies from the Gulf. India depends heavily on the route for its LNG and LPG imports, prompting buyers to seek alternative sources as supply uncertainty increased.

According to industry data, US shipments of LNG and LPG to India rose sharply in May. American LNG exports accounted for more than 40 per cent of India’s monthly LNG requirements, while LPG supplies from the US exceeded the combined volumes received from major Gulf suppliers.

Energy analysts say the shift reflects both immediate supply concerns and a broader effort by India to diversify its energy sources. For years, Gulf nations such as Saudi Arabia, Qatar, the UAE and Kuwait dominated India’s gas imports. However, recent geopolitical tensions have highlighted the risks of relying heavily on a single region.

The growing energy partnership between India and the US had already been gaining momentum before the latest disruptions. Indian state-owned refiners signed long-term LPG supply agreements with US producers, helping strengthen trade ties between the two countries.

Experts note that importing gas from the US is generally more expensive than sourcing it from the Gulf because of longer shipping distances. Despite the higher costs, securing reliable supplies has become a priority amid ongoing uncertainty in West Asia.

The development is expected to deepen energy cooperation between New Delhi and Washington while improving India’s energy security. However, analysts believe Gulf countries will remain important suppliers once regional shipping conditions stabilize.

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India puts Starlink approval on hold for security reasons

The Indian government has reportedly put on hold the final approval process for Starlink, the satellite internet service operated by Elon Musk’s SpaceX, amid growing security concerns linked to its reported use during the ongoing conflict involving Iran.

According to reports, authorities are reassessing Starlink’s proposed operations in India after concerns emerged about how satellite-based internet services can be used in conflict zones and sensitive security situations. The review is focused on ensuring that India’s national security interests are adequately protected before commercial operations are allowed to begin.

Starlink has been seeking regulatory clearances to launch its satellite broadband services in India and has already secured several key approvals in recent months. The company aims to provide high-speed internet connectivity, particularly in remote and underserved regions where conventional broadband infrastructure remains limited.

However, recent reports highlighting the use of satellite communication networks in conflict-affected areas have prompted Indian authorities to take a closer look at the technology’s security implications. Officials are understood to be examining issues related to user verification, lawful interception capabilities, data access, emergency controls and the ability of government agencies to monitor communications when required under Indian law.

The review comes at a time when governments worldwide are debating the regulatory challenges posed by satellite internet services. Unlike traditional telecom networks that operate through ground-based infrastructure, satellite broadband systems function through constellations of satellites orbiting the Earth, creating new questions around jurisdiction, oversight and security compliance.

Industry experts note that while satellite internet services have the potential to transform connectivity in rural and remote areas, regulators are increasingly focused on balancing technological innovation with national security requirements.

The reported pause does not necessarily indicate a rejection of Starlink’s India plans. Instead, it appears to be part of a broader review process aimed at ensuring that all operational, legal and security safeguards are in place before commercial deployment.

For now, Starlink’s entry into the Indian market remains under regulatory examination.

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