Labour Ministry Notifies Final Rules for the Wage Code & Industrial Relations Code
The Ministry of Labour and Employment has issued the final Rules for the Code on Wages and the Industrial Relations Code, bringing them into force. This completes the rollout of the four labour Codes first announced in November 2025, with rules for the Social Security and OSH & WC Codes pending. The new Rules introduce statutory floor wages, a reskilling fund, and model standing orders for key sectors such as mines, manufacturing and services. Experts note that while the central Rules set a national baseline, state alignment will determine the uniformity of compliance across India.
India Seeks Early Resolution of Issues Related to Implementation of EFTA Trade Pact
India has called for an early resolution of implementation issues under the India‑EFTA Trade and Economic Partnership Agreement, which entered force in October 2025. Commerce Secretary Rajesh Agrawal highlighted the need during a May 6‑7 visit to Switzerland, meeting Swiss State Secretary Helene Budlige Artieda...
India, Canada to Hold Next Round of FTA Talks in Ottawa in July
India and Canada will reconvene in Ottawa in July 2026 for the next round of negotiations on their Comprehensive Economic Partnership Agreement (CEPA). The two countries completed a second five‑day session in New Delhi, covering goods, services, IP, rules of origin...
India Forex Reserves Drop $7.8 Bn; Rupee Weakens to 94.47 Against the Dollar
India’s foreign exchange reserves fell $7.8 billion in the week to May 1, bringing the total down to $690.7 billion, the second consecutive weekly decline. The drop was driven by a $5.0 billion reduction in gold holdings and a $2.8 billion fall in foreign currency...
India’s New Safe Harbour Rules Create Fresh Tax Dilemma for Multinationals, GCCs
India’s 2026 Union Budget introduced a 15.5% safe harbour margin for IT and ITeS services, undercutting the 16.5%‑18.5% margins typically set in advance pricing agreements (APAs). Multinationals with existing APAs now face a choice: stay locked into higher margins or...
India's 6.6% Growth "Very Good Record" Amid Global Turmoil: Amitabh Kant
India’s economy expanded 6.6% year‑on‑year, cementing its position as the world’s fastest‑growing large economy despite wars, broken supply chains and rising protectionism. Former NITI Aayog chief Amitabh Kant praised the pace as a “very good record” and linked it to structural...
CPSEs Capex Surges 63% in April, Kick Off FY27 on Strong Note
India’s large public‑sector enterprises and four key government bodies raised capital spending in April to Rs 81,107 crore (≈ $9.8 billion), a 63 % year‑on‑year jump. The outlay, which accounts for about 9.6 % of the FY 27 budgeted capex of Rs 8.43 lakh crore (≈ $101 billion), underscores a vigorous start...
India-EU FTA Will Be a Win-Win for Both Sides, Looking Forward to Its Ratification: Airbus India MD
Airbus India MD Jurgen Westermeier hailed the pending India‑EU free trade agreement as a win‑win, urging swift ratification. The pact, announced in January 2024, links two of the world’s largest democracies and covers a combined $24 trillion market. Current bilateral trade...
EU Envoy Seeks Investment Liberalisation Chapter in FTA with India, Early Investment Pact Conclusion
The European Union’s ambassador to India, Herve Delphin, urged the inclusion of an investment‑liberalisation chapter in the pending EU‑India free‑trade agreement and a swift conclusion of the parallel investment‑protection pact. The deal, covering two billion people and roughly a quarter of...
Govt Issues Uniform Guideline for Measuring States' GDP with Revised Base Year of 2022-23
India's Statistics Ministry issued a uniform guideline that shifts the Gross State Domestic Product (GSDP) base year to 2022‑23, aligning state accounts with the recently updated national accounts. The new framework replaces the outdated 2011‑12 base used by 34 states...
ADB Warns Asian Economies Against Broad Fuel Subsidies, Tax Cuts Amid Oil Price Risks
The Asian Development Bank warned Asian governments that broad fuel subsidies and excise‑duty cuts could jeopardize fiscal health as crude oil prices stay high. It emphasized preserving fiscal space, avoiding export controls, and shifting to targeted cash transfers for the...
Resilient, Not Shock-Free: India Charts Path Through War Jitters
India’s economy is feeling the tremors of the West Asia conflict, with rising oil prices and trade disruptions testing its resilience. While the Finance Ministry’s April review notes strong domestic demand and solid policy buffers, export volumes fell 7.4% in...
A 1% Problem that Can Derail India’s Factory Lines as Tiny Screws Throw Big Tantrums
A new Global Trade Research Initiative report warns that India’s Quality Control Orders (QCOs) on fasteners—components that represent less than 1% of manufacturing costs—are inflating expenses and throttling supply. Licensing fees of $960‑$1,200 per licence, $265‑$300 per variant test, and...
India Services Growth Picks up in April on Strong Domestic Demand, PMI Shows
India’s services sector rebounded in April, with the HSBC India Services PMI climbing to 58.8 from 57.5 in March, its strongest reading in five months. Domestic demand, especially in consumer services, drove the surge, offsetting a slowdown in international orders...
Credit Growth Signals Economic Strength: Finance Ministry
India’s finance ministry highlighted a surge in non‑food credit growth to 15.9% in FY 26, up from 10.9% a year earlier. Aggregate credit outstanding reached ₹212.9 lakh crore (about $2.6 trillion), a rise of ₹29.2 lakh crore (~$352 billion) YoY. The expansion was broad‑based, led by the...
Rare Earths, PCBs Among 40 Sub-Sectors on FDI Fast Track
India has placed rare‑earth magnets and printed circuit boards among 40 sub‑sectors eligible for a 60‑day fast‑track FDI clearance. The new SOP requires detailed ownership disclosure for investors from China or other bordering nations, with data shared with the RBI....
Iran War Could Drag India's GDP Growth to 6.5% This Fiscal, Says CII President Rajiv Memani
India’s GDP could expand about 7% this fiscal if the Iran war ends soon, but Confederation of Indian Industry (CII) president Rajiv Memani warns growth may slip to 6.5% if the conflict persists. He noted that FY 26 growth is projected at...
Nepal to Procure 80,000 Tonnes of Fertiliser From India as Iran Disrupts Global Supply Chains
Nepal will buy 80,000 tonnes of fertilizer from India under a government‑to‑government agreement to offset global supply shocks caused by the West Asia war. The shipment comprises 60,000 tonnes of urea and 20,000 tonnes of di‑ammonium phosphate, funded by a...
Pharma Exports Surpass $31 Billion in FY26 Despite Global Headwinds
India’s pharmaceutical exports exceeded $31 billion in FY 26, marking a robust overall performance despite a sharp 23% drop in March shipments. The decline was driven by a 10% fall in U.S. exports and an 11.5% dip to China, both grappling with...
RBI Flags False Loan Waiver Claims by some, Warns of Legal Action
The Reserve Bank of India issued a warning on May 5, 2026 about unauthorized loan‑waiver schemes circulating on social media. The RBI said these campaigns falsely promise debt forgiveness in exchange for fees and could mislead borrowers. It warned that...
Direct Tax Mop-Up Misses FY26 Target; Collections Rise 5%
India’s net direct tax collections rose 5.12% year‑on‑year to ₹23.40 lakh crore (≈ $283 billion) in FY 2025‑26, but fell short of the revised target of ₹24.21 lakh crore (≈ $292 billion). The shortfall of ₹81,000 crore (≈ $975 million) stemmed from weaker corporate and personal income tax receipts, with corporate tax...
No Government Financial Support Planned for Fuel Retailers' Petrol, Diesel, ATF Losses
India's Ministry of Petroleum and Natural Gas confirmed that it will not provide any financial assistance to state‑owned oil marketers—Indian Oil, Bharat Petroleum and Hindustan Petroleum—for the losses they are incurring on petrol, diesel and aviation turbine fuel (ATF). The...
MSME Apprenticeships Set for Boost as India Drafts Roadmap
India is drafting a two‑part roadmap to expand apprenticeship training in micro, small and medium enterprises (MSMEs). The plan combines immediate actions—like simplified compliance and clearer subsidies—with long‑term regulatory reforms, including a Group Training Model that lets clusters share apprentices...
CEA Nageswaran Calls for Capex Push Amid EV Growth Momentum
Chief Economic Adviser V. Anantha Nageswaran urged Indian corporates to boost capital expenditure despite a 31% annual profit rise among the top 500 firms post‑pandemic, noting that investment has lagged. He warned that private‑sector under‑investment forces the public sector to...
Parliamentary Panels Flag Ministries’ Budget Gaps: Funds Cut at RE Stage, Still Unspent
Parliamentary standing committees have highlighted a systemic shortfall in budget execution across several Indian central ministries. In many cases, allocations are slashed at the Revised Estimates stage and still remain largely unspent, with the petroleum ministry using only 52% of...
Plurilaterals without Guardrails Can Fragment Trading System: Experts
Former WTO director‑general Pascal Lamy and Indian officials warned that while global trade volumes are rising, the WTO’s credibility is eroding and its dispute‑settlement system remains dysfunctional. They argued that plurilateral agreements, such as the Multi‑Party Interim Appeal Arbitration Arrangement...
France Seeks Enforceable Rules in India-EU FTA Talks
France is urging the India‑EU free‑trade agreement to include enforceable rules on non‑tariff barriers, moving beyond political alignment toward concrete implementation. The pact, signed on 27 January 2026, grants duty‑free access to over 99% of Indian exports—about $33.5 billion worth—while offering the...
DEA Notifies FDI Easing for Foreign Cos with up to 10 Pc Chinese Stake Under FEMA
India’s Finance Ministry has eased foreign direct investment rules, allowing overseas companies with up to a 10 percent Chinese or Hong Kong shareholding to invest via the automatic route under FEMA. The change, approved by the Union Cabinet in March, shifts the...
Barrierless Tolling to Go Live Soon, MLFF Trials Underway at Delhi’s Mundka Plaza
India is piloting barrier‑less tolling, known as Multi‑Lane Free Flow (MLFF), at Delhi’s Mundka plaza, with live operations slated for mid‑May 2026. The system automatically deducts tolls via FASTag and vehicle‑number recognition, eliminating the need for boom barriers. Gujarat’s Choryasi...
Give Our Bullion Back: India Wants Its Gold Under Own Lock and Key
India is rapidly repatriating its gold, with the Reserve Bank of India now holding about 77% of its 880.5 tonnes of bullion in domestic vaults—roughly 680 tonnes. In the last six months the RBI moved 104.23 tonnes back from overseas storage, raising gold’s...
India's Sugar Exports to Be 7.5-8 Lakh Tonnes in 2025-26 Season on Weak Global Prices: Official
India’s sugar export outlook for the 2025‑26 marketing season has been trimmed to roughly 7.5‑8 lakh tonnes, down from the 2 million‑tonne ceiling initially set by the Food Ministry. The reduction reflects weak global price parity, which makes overseas shipments uneconomical....
India Likely to See Above-Normal Rainfall in May, Mixed Heat Trends as El Nino Signal Strengthens: IMD
India’s meteorological agency forecasts May 2026 to be wetter than average, with rainfall expected to exceed 110% of the long‑period average. Most of the country should see normal‑to‑below daytime temperatures, while southern peninsular, northeast and northwest regions may experience above‑normal...
Govt to Continue with Budgeted Capex Despite Fiscal Stress Due to Global Uncertainties: Official
The Indian government has reaffirmed its commitment to spend the budgeted Rs 12.22 lakh crore (approximately $147 billion) on capital expenditure this fiscal year, despite mounting fiscal pressure from the West Asia crisis. Expenditure Secretary V Vualnam emphasized that infrastructure projects in highways, railways, shipping,...
India’s Gross GST Collections Hit Record Rs 2.42 Lakh Crore in April, up 8.7%
India’s Goods and Services Tax (GST) collections reached a record Rs 2.42 lakh crore (≈ $29 billion) in April 2026, an 8.7% year‑on‑year rise. Net GST revenue climbed to Rs 2.11 lakh crore ($25 billion), while refunds grew 19.3% to Rs 31,793 crore ($3.8 billion). The surge was driven largely by a...
What Noida's Factory Protests Mean for India's Wage Debate
The Uttar Pradesh government responded to Noida factory protests by raising the unskilled minimum wage from roughly $136 to $165 per month, a 20% increase that pushes the state’s five‑year wage growth to about 50%. While the hike narrows the...
Finance Ministry Caps Outlay for Schemes Pending 16th Finance Commission Approval
The Finance Ministry has imposed a cap on front‑loading expenditures for central sector and sponsored schemes that are still awaiting appraisal under the upcoming 16th Finance Commission cycle. Funding for these pending schemes is limited to the first two quarters...
India Invokes WTO Peace Clause for FY25 Rice Subsidies for Farmers
India announced rice subsidies of $7.6 billion for FY 2024‑25, representing 11.85% of the sector’s $64.13 billion production value. This exceeds the WTO de minimis ceiling of 10%, prompting New Delhi to invoke the WTO peace clause for the seventh time. The peace clause shields...
Current Growth Trajectory Paves Way for India to Be a Developed Nation by 2047: Jeffrey D Sachs
Renowned economist Jeffrey D. Sachs told a FICCI event that India could become a developed nation by 2047 if its current growth trajectory continues. He urged New Delhi to maintain a non‑aligned stance, avoiding participation in the US‑led Quad and steering...
Govt Develops Export Monitoring Framework to Meet FY31 $2 Trillion Export Target
India’s Department of Commerce unveiled an Export Monitoring Framework that breaks the $2 trillion export goal for FY31 into sector‑specific actions across engineering, textiles, electronics, pharmaceuticals, chemicals and services. The plan ties supply‑side and demand‑side initiatives to clear key performance indicators...
Woking on Jan Vishwas Bill 3 to Further Improve Business Environment: Piyush Goyal
Commerce and Industry Minister Piyush Goyal announced that India is drafting a third Jan Vishwas bill aimed at simplifying regulations, cutting compliance burdens, and reducing intimidating forms for businesses. The move follows the 2026 amendment that de‑criminalised over 1,000 minor offences...
RBI Launches 3 Key Surveys for Monetary Policy Input
The Reserve Bank of India (RBI) has launched the May 2026 rounds of three surveys—household inflation expectations, rural consumer confidence, and urban consumer confidence—to feed data into its monetary‑policy framework. The inflation expectations survey covers 19 major cities and captures households’...
ADB Cuts Growth Outlook of Asia to 4.7% as West Asia Disruptions Deepen
The Asian Development Bank lowered its 2026 growth outlook for Asia and the Pacific to 4.7%, down from 5.1%, citing prolonged disruptions in West Asia that are driving higher energy prices and tighter financial conditions. Inflation expectations were sharply revised...
RBI Allows Banks to Extend Relief Measures to Borrowers without Their Requests in Disaster-Hit Areas
The Reserve Bank of India issued revised disaster‑relief guidelines that become effective on July 1, 2026, allowing banks to proactively extend relief measures to borrowers in calamity‑hit areas without waiting for a request. Relief options include fee waivers, temporary branches, mobile banking...
India's Farm Output Hits Record 357 Million Tonnes in 2024-25: J&K Lieutenant Governor
India’s total farm production hit a record 357 million tonnes in 2024‑25, up 25 million tonnes from the previous year, while horticulture output rose to 362 million tonnes. The government highlighted several climate‑resilient initiatives, including the rollout of 25 crore soil‑health cards, an increase...
Affluent India Shifts to Experience-Led Spending, Travel Accounts for 58% of Discretionary Wallet: Report
Visa’s latest whitepaper shows India’s affluent consumers are pivoting to experience‑led spending, with travel now accounting for 58% of discretionary expenditure among the ultra‑elite. The segment earning over ₹10 lakh (≈$12,000) has expanded from 690,000 to 1.3 million individuals, spreading beyond metros...
India Allows 25 Lakh Tonnes Additional Wheat Exports, Total Reaches 50 Lakh Tonnes
India's Directorate General of Foreign Trade approved an additional 2.5 million tonnes of wheat for export, raising the total permissible wheat export quota to 5 million tonnes for the 2025‑26 marketing year. The decision also expands wheat‑product exports by 1 million tonnes, bringing...
Goods Moved From SEZs to Domestic Markets Treated as Imports; Duty Drawback Applicable on Re-Exports
The Central Board of Indirect Taxes and Customs (CBIC) issued a clarification that goods moved from Special Economic Zone (SEZ) units into the Domestic Tariff Area (DTA) after duty payment will be treated as imports if they are later re‑exported....
India–New Zealand FTA to Double India’s Engineering Exports to $280–300 Mn in Five Years
India and New Zealand have signed a free‑trade agreement that eliminates duties on all Indian goods, giving the engineering sector a clear pathway to double its exports to the Kiwi market. Current shipments of $140.5 million are expected to climb to $280‑300 million...
India Industrial Output Hits 5-Month Low of 4.1% in March as Power, Manufacturing Drag
India’s industrial output growth slowed to a five‑month low of 4.1% in March 2026, according to the National Statistics Office. The slowdown was driven by weak manufacturing, which rose only 4.3%, and a sharp drop in power generation to 0.8%...
India-New Zealand FTA Duty Concessions Under to Help Boost Exports of Single Malt Whisky: CIABC
India and New Zealand have finalized a free‑trade agreement that grants duty‑free access for Indian alcoholic beverages into the New Zealand market. The Confederation of Indian Alcoholic Beverage Companies (CIABC) says the concession will particularly lift the modest $1 million annual export of...