Asianet Newsable

PM Modi's Norway visit to boost economic, cultural ties: Business leaders

Asianet News Central — Sun, 17 May 2026 21:00:26 +0530

Ahead of Prime Minister Narendra Modi's upcoming visit to Norway, business leaders and startup representatives said the visit is expected to strengthen India-Norway economic cooperation, with a focus on sustainability, green technology, startups and skilled talent collaboration.

Norwegian Business Leader Welcomes Visit

Speaking to ANI, Atle Brynestad, Owner, Chairman and CEO of Hadeland Glassverk, said PM Modi's visit would help deepen business and cultural ties between the two countries. "It's very important that he found time to come to Norway. He's a world leader today. He's working for peace for his own people, for the peace in the world, for free trade," Brynestad said.

Highlighting India's importance as a market, he said, "India is an amazing place. I have been doing business with India for more than 40 years... I think the cooperation between India and Norway is growing, and it's absolutely a big, big future for cooperation." Brynestad also stressed the role of design, craftsmanship and skilled workforce collaboration between the two countries. "We like to establish much closer relations with India... because you have a lot of skilled workers in India," he said while speaking about expanding production and design partnerships.

Indian Startups See Opportunities in Green Tech

Meanwhile, Indian startup representatives said the India-Nordic Summit could open new opportunities in green technology, education, sustainability and startup collaboration. Abhishek Chola, Founder and CEO of Just Learn and part of a Confederation of Indian Industry (CII) delegation, said Norway and other Nordic nations have strong capabilities in sustainable technologies and clean-tech innovation.

"This Nordic Summit will open many opportunities between all Nordic nations and, of course, India too, because now we are working in very sustainable technologies and Norway is very good in green tech startups and sustainability," Chola told ANI.

India as a 'Global Talent Powerhouse'

He added that India is increasingly being recognised globally not just as a large market, but also as a talent and innovation hub. "India is not only a big market, but India is also called a global talent powerhouse," he said.

On startup cooperation, Chola said stronger India-Nordic ties could help both sides collaborate in technology, education and skill development. "This particular summit will provide a good opportunity for both sides startups... to collaborate in technologies, in education, in skill development and towards sustainability," he said.

He further noted that India's startup ecosystem is playing an increasingly important role in emerging technologies such as artificial intelligence and robotics. "India will play a very big and significant role in the years to come because now in the coming times we need to adopt many new technologies," he added.

A Historic Visit

The Prime Minister's visit, scheduled for May 18-19, marks the first time an Indian premier has travelled to the Nordic nation in 43 years, signalling a major strategic pivot toward Northern Europe. In Norway, PM Modi will participate in the 3rd India-Nordic Summit in Oslo on May 19 and hold bilateral talks with Norwegian Prime Minister Jonas Gahr Støre. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

India should use AI to boost productivity, not replace workers: Virmani

Asianet News Central — Sun, 17 May 2026 20:30:49 +0530

India should use Artificial Intelligence (AI) to enhance human productivity rather than replace workers, said Former NITI Aayog member Arvind Virmani on Sunday. He argued that the country's strength lies in combining AI with its large workforce instead of aggressively pursuing robotics-led automation.

In an interview with ANI, Virmani said India's AI strategy should focus on practical applications and productivity improvements across sectors such as healthcare, education, agriculture and small businesses. "For us, AI has to be a complement... it has to be to help improve the quality of the profession," Virmani said.

India's Strategy: People Over Robots

He said countries such as China and many developed economies are increasingly focusing on robotics because of shrinking labour forces, but India's demographic situation is very different. "China, for example, will not have any people to work, so they are emphasising robots; we should not emphasise robots," he said.

According to Virmani, India should instead focus on improving worker productivity and skill development through AI tools. "When I hear why isn't India building robots, I say that's not what you want to do, you want to use the people, you want to give job skills to the people," he said.

Focus on Practical Applications

Virmani also stressed the importance of integrating AI education into the school system from an early stage. "If AI is going to become pervasive, we must teach our students at every level... starting from secondary school, they must be able to use AI," he said.

He said AI can also play a major role in supporting self-employed workers and small businesses, particularly women-led enterprises and family-run operations. Virmani cited examples where AI systems could help manage small enterprises, improve food processing efficiency and support rural productivity.

AI Investment and Government Role

On concerns around a possible AI investment bubble, Virmani said rising global uncertainty and tariff-related risks have made traditional investments more risky, leading investors to shift more capital towards AI. "In that sense, there is a bubble, but this bubble will come down as soon as the risk of these other things comes back to more normal levels," he said.

Virmani also argued that India's AI investment story is often misunderstood, saying the government is already supporting AI research and development through funding initiatives and technology programmes. "The government is spending a lot of money on AI," he said, adding that support is being extended to universities, startups and companies developing large language models (LLMs).

He said companies, including Sarvam AI and three other firms, have received government backing to develop foundational AI models in India.

Boosting Private Sector R&D

Virmani also called for stronger incentives to boost private-sector research and development in emerging technologies such as AI, semiconductors and quantum computing. "We should restore the double deduction on R&D expenditure," he said, while suggesting that tax incentives should be targeted towards strategic sectors critical for future growth.

According to Virmani, India's biggest AI opportunity lies in building real-world applications that improve productivity and service delivery across sectors, rather than merely replicating the strategies of developed economies. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

Bullet Train: India's largest TBM cutterhead lowered in Mumbai

Asianet News Central — Sun, 17 May 2026 20:01:07 +0530

India's largest cutterhead for a rail tunnel boring machine (TBM) has been lowered at Vikhroli in Mumbai for the Mumbai-Ahmedabad Bullet Train project, marking a major milestone in the construction of the country's first undersea rail tunnel, according to the National High Speed Rail Corporation Limited (NHSRCL).

The cutterhead, which has a diameter of 13.6 metres and weighs around 350 tonnes, marks the final stage in the primary assembly of the TBM's main shield. NHSRCL said the machine will be used for excavation of a section of the underground tunnel for the high-speed rail corridor.

Largest TBMs Deployed for Project

"Two TBMs, each weighing over 3,000 tonnes, are currently being assembled to construct a 16 km portion of the 21 km Mumbai tunnel," the release said. The tunnel section includes a 7 km stretch beneath Thane Creek, which NHSRCL described as "India's first undersea rail tunnel." The corporation also said these are the "largest ever" TBMs deployed for rail tunnel construction in the country.

Union Railway Minister Ashwini Vaishnaw also shared the development on X, stating, "Railway's biggest TBM cutter head lowered at Vikhroli, Mumbai."

Cutterhead Design and Function

According to the release, the 13.6-metre diameter cutterhead has been designed to excavate a single large tunnel that can accommodate both the up and down lines of the bullet train corridor. "Its 350-tonne weight is equivalent to approximately 250 passenger cars (midsize SUVs)," the release stated.

NHSRCL said the cutterhead arrived in five separate shipments and was assembled on-site using 1,600 kg of high-precision welding. The unit has been equipped with 84 cutter discs, 124 scrapers and 16 bucket lips to cut through rock and remove excavated material during tunnelling operations.

Explaining the functioning of the system, the release said cutter discs are the primary tools that cut through the rock face, while scrapers help in muck clearance at the excavation face. The bucket lips act as openings through which the excavated material enters the muck chamber and is directed to the pipeline system for removal from the tunnel.

Tunneling Operations and Safety

The TBM will excavate an approximately 6 km tunnel stretch from Vikhroli towards the Bandra Kurla Complex (BKC), passing beneath dense urban areas and the Mithi River before being retrieved at the under-construction Mumbai Bullet Train station at BKC.

NHSRCL said several monitoring systems are being deployed to ensure safe tunnelling activity and protect nearby structures. These include Surface Settlement Points (SSP), Optical Displacement Sensors (ODS), strain gauges and seismographs to monitor vibration, displacement and tunnel surface strain during excavation.

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

Prudential to acquire 75% controlling stake in Bharti Life Insurance

Asianet News Central — Sun, 17 May 2026 18:30:50 +0530

Bharti Enterprises on Sunday announced that Prudential plc ("Prudential"), a leading insurer and asset manager in Asia and Africa, has agreed to acquire a 75 per cent stake in Bharti Life Insurance Company Limited ("Bharti Life"), one of India's leading life insurance providers, from Bharti Life Ventures Pvt Ltd (and other selling shareholders), according to a press release by Bharti Enterprises.

Leadership on the Strategic Alliance

Commenting on the development, Sunil Bharti Mittal, Founder and Chairman, Bharti Enterprises, said, "We are delighted to welcome Prudential Plc as the controlling shareholder of Bharti Life, further accelerating its growth trajectory. Prudential's experience and global scale, combined with Bharti's strong track record, create a formidable alliance to tap into the immense potential of India's life insurance sector. This partnership opens new opportunities for Bharti Life's employees and further reinforces the strategic relationship between India and the United Kingdom."

Karan Bhagat, Founder, MD & CEO, 360 ONE, said, "Our private equity funds are pleased to have made a meaningful investment in Bharti Life Insurance and we have been encouraged by the company's market-leading growth and strong momentum. Today's transaction reflects both its current performance and long-term potential. We are also delighted to welcome Prudential PLC's controlling investment in Bharti Life Insurance and look forward to continuing the distribution of the company's products through our network."

Expanding in India's Life Insurance Sector

This transaction comes with India's life insurance sector undergoing rapid transformation, driven by digital adoption, increasing awareness, and rising demand for financial protection solutions. The market continues to present strong structural growth opportunities, supported by favorable demographics and relatively low life insurance penetration, indicating significant unmet demand.

Bharti Life Insurance, an entity of Bharti Enterprises, has built a strong presence in India through innovative life insurance solutions and an expanding footprint. The investment will support Bharti Life's next phase of growth by enhancing its product offerings and expanding its distribution reach to better serve evolving customer needs.

Bharti Life's strong local presence, combined with Prudential's established insurance expertise, is expected to expand access to life and health protection solutions across the country, supported by the combined brand strength and operational capabilities of both organisations.

Completion of the transaction remains subject to the receipt of regulatory approvals and the satisfaction of other conditions. (ANI)

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Design, innovation key for developed India, says Piyush Goyal at NID

Asianet News Central — Sun, 17 May 2026 18:00:40 +0530

Union Commerce and Industry Minister Piyush Goyal on Sunday said design, innovation, research and entrepreneurship will form the foundation of a "developed India", while calling for the expansion of the National Institute of Design (NID) across the country.

Goyal Calls for NID Expansion

Speaking to ANI on the sidelines of the inauguration of the Innovation and Incubation Centre (IIC) at NID in Gandhinagar, Goyal said the Government is focusing on strengthening India's creative ecosystem and ensuring better opportunities for professionals associated with the design industry.

"We discussed how our creative ecosystem and the individuals associated with the world of design can be properly valued and effectively utilised within the industry, ensuring they receive fair remuneration and earn a good livelihood. NID should be expanded across the entire country," Goyal told ANI.

The Union Minister said Amit Shah had provided guidance on expanding the role and reach of the institute.

"The Home Minister provided us with this invaluable guidance, which we intend to carry forward to take NID to new heights," he said.

'Pillars of a Developed India'

Highlighting the growing importance of the sector, Goyal said design and innovation would play a key role in India's development journey.

"This is a field that holds immense potential. When we speak of a developed India, the pillars that will truly serve as its foundation are Design, Innovation, Research and Development, along with Packaging and Brand Building," he added.

Transforming Youth into 'Job Creators'

In a post on social media platform X after the event, Goyal said institutions like NID are helping transform young people from "job seekers into job creators".

"Design, innovation and entrepreneurship are set to become the new identity of a developed India. Institutions like NID are playing an important role in transforming the country's youth from job seekers into job creators," Goyal said in his post.

The minister also expressed confidence that the newly inaugurated Innovation and Incubation Centre would help strengthen India's global design presence.

"I am fully confident that this institution will give India's creative talent a new identity on the global stage and take 'Designed in India' to new heights," he added.

The inauguration programme was also attended by Union Home Minister Amit Shah, Gujarat Chief Minister Bhupendra Patel and Deputy Chief Minister Harsh Sanghavi.

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

Gautam Adani launches Rs 150 crore vision care initiative in Bihar

Asianet News Central — Sun, 17 May 2026 17:30:40 +0530

Gautam Adani, Chairman of the Adani Group, today led the ground-breaking ceremony for a landmark Rs 150 crore vision care initiative, rooted in his philosophy of "Seva Hi Saadhna Hai" (service is the highest form of worship). He made this announcement in Mastichak, about 70 kilometres from Patna, to create one of the world's largest rural eye care ecosystems with capacity for 3.3 lakh eye surgeries annually while training 1,000 eye health professionals every year. The initiative seeks to strengthen affordable eye treatment, rural outreach and vision care-skilling while bringing dignity, hope and the gift of sight to underserved communities across the Hindi heartland.

In a post on X, Gautam Adani said "Seva Hi Sadhaana Hai" is not merely a slogan, but a guiding philosophy that must translate compassion into lasting institutions for society. "Restoring sight is not merely a medical intervention. It is about returning hope, confidence and dignity to a human life," he wrote. Calling Bihar "a land that has historically given new consciousness and direction to the nation", he added that the newly-created trust, "Adani Akhand Jyoti Foundation", would seek to take the spirit of service born in Bihar to underserved communities across India.

Details of the Vision Care Initiative

The Adani Foundation, the social welfare and development arm of the Adani Group, will financially support the Adani Centre for Eye (ACE) and Adani Training in Ophthalmic Medicine (ATOM) in Mastichak, in partnership with Akhand Jyoti Foundation, a leading rural eye care institution based in Bihar. ACE will serve as an advanced treatment and surgical facility focused on affordable care, complex procedures and large-scale rural outreach, while ATOM will focus on training optometrists, ophthalmic assistants and community healthcare workers to strengthen India's rural healthcare workforce.

A ceremonial flag off was done for a fleet of 10 patient transport buses under the ACE banner to symbolise the start of last-mile vision care access across remote villages in Bihar and adjoining regions.

Gautam Adani was joined by Dr Priti Adani, Chairperson - Adani Foundation and Mritunjay Tiwary, Co-Founder, Chief Executive Officer (CEO) and Executive Trustee - Akhand Jyoti Eye Hospital, in the ground-breaking ceremony.

A Transformative Partnership

Tiwary described the collaboration with the Adani Foundation as a shared commitment to expanding affordable and accessible eye care for underserved communities across India. "I express my heartfelt gratitude to Gautam Adani-ji for placing trust in Akhand Jyoti Eye Hospital and choosing us as a partner in this transformative journey. This partnership is far beyond the creation of infrastructure. It is a shared commitment towards restoring sight, dignity, opportunity and hope for countless people living in the last-mile and underserved regions of India. Together, we believe this collaboration will create an exponential and lasting impact on millions of lives in the years ahead," he said.

Expanding Healthcare and Social Outreach

Additionally, the Adani Foundation announced plans to establish a 200-bed hospital in Pirpainti, in Bihar's Bhagalpur district, near the Adani Group's upcoming 2,400 MW ultra-supercritical thermal power plant. The hospital aims to further strengthen affordable healthcare access while extending the benefits of community outreach and treatment to larger parts of eastern Bihar.

To take the transformative work of Akhand Jyoti Foundation beyond Bihar and into underserved regions across India, Gautam Adani also announced a personal commitment of Rs 500 crore and the establishment of the "Adani Akhand Jyoti Foundation" to scale this long-term humanitarian and community healthcare mission across the country.

The total investment outlay for the pioneering initiatives, including operational expenditure (opex), will exceed Rs 700 crore.

This initiative in Bihar reflects Gautam Adani's belief that nation-building must be anchored in compassion, service and long-term social investment. In 2022, on his 60th birthday, the Adani family announced a Rs 60,000 crore commitment towards healthcare, education and skill development, followed by an additional Rs 10,000 crore social commitment during the wedding celebrations of Jeet Adani, younger son of Gautam Adani, last year.

Since 2022, the Group has expanded its seva-led outreach through large-scale initiatives, including supporting nearly 50 lakh pilgrims during the Maha Kumbh in Prayagraj in 2025 and distributing nearly 40 lakh free meals and liquid refreshments during the Lord Jagannath Rath Yatra in Puri, Odisha, in the same year.

Adani Group's Investment Footprint in Bihar

This initiative underscores the Adani Group's growing commitment to Bihar, where it has emerged as one of the largest private sector investors in the state, with cumulative investments and planned commitments up to Rs 40,000 crore. These investments include a 2,400 MW ultra-supercritical thermal power plant in Pirpainti, involving nearly Rs 27,000 crore, representing the largest private sector investment in Bihar.

Through Indian Oil Adani Gas Private Limited, the Group is developing city gas distribution networks in Gaya and Nalanda districts, while Adani Energy Solutions Limited is modernising electricity distribution infrastructure across northern Bihar through the installation of nearly 30 lakh smart meters.

The Group is also expanding its cement manufacturing footprint through two 6 million tonnes per annum (MTPA) grinding units in Nawada and Muzaffarpur districts involving combined investments of nearly Rs 3,000 crore.

Building on a Legacy of Service

Established in 2005 as a 30-bed facility in rural Bihar, Akhand Jyoti Eye Hospital has evolved into one of India's leading eye care institutions, having conducted more than 14 lakh sight-restoring surgeries and millions of screenings and outreach consultations.

The collaboration also aligns with the Government of India's National Programme for Control of Blindness and Visual Impairment (NPCBVI), launched in 1976 as a centrally-sponsored scheme, and seeks to create a scalable, community-driven model for affordable eye care delivery.

The initiative further builds on the expanding Vision Care Programme of the Adani Foundation, which completes 30 years of community service this August. Since its launch in 2024, the Vision Care Programme has conducted 1.93 lakh eye screenings and supported 59,000 beneficiaries with prescription eyeglasses through rural outreach, screenings in school and referral support across 11 states in India.

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

FPIs Pull Out Rs 13,740 Crore from India Amid Global Uncertainty

Asianet News Central — Sun, 17 May 2026 17:01:34 +0530

Foreign portfolio investors (FPIs) remained net sellers in the Indian markets during the week ended May 15, pulling out Rs 13,740.89 crore across segments, according to data from the National Securities Depository Limited (NSDL).

Reasons for Sustained Outflows

The sustained outflows reflect cautious global investor sentiment amid escalating geopolitical tensions in West Asia, rising crude oil prices, and concerns over the weakening rupee.

The selling pressure was largely concentrated in equities, where FPIs withdrew Rs 12,817.11 crore during the week.

Market experts believe foreign investors are turning risk-averse as the ongoing conflict in West Asia continues to disrupt global energy markets and increase uncertainty across emerging economies. India, being a major crude oil importer, remains vulnerable to any sharp rise in global oil prices.

Higher crude prices are expected to widen the country's trade deficit and put additional pressure on the rupee, making Indian assets relatively less attractive for foreign investors.

The rupee's weakening trend against the US dollar has also contributed to the cautious approach adopted by overseas investors. A depreciating currency reduces returns for FPIs in dollar terms, often triggering capital outflows from emerging markets like India.

Weekly Market Trend

Debt segments too witnessed outflows during the week. Debt-VRR recorded notable selling activity, while hybrid instruments also saw withdrawals, indicating broad-based caution among global funds.

The week began on a weak note with FPIs recording net outflows of Rs 1,131.77 crore on May 11. Selling intensified sharply on May 12, when foreign investors pulled out Rs 7,545.99 crore, marking the steepest single-day outflow during the week. Although FPIs briefly turned buyers on May 13 with inflows of Rs 346.37 crore, the recovery remained short-lived as selling pressure resumed in subsequent sessions. On the final trading day of the week, FPIs infused Rs 1,111.53 crore into equities, helping limit overall losses.

Meanwhile, Prime Minister Narendra Modi recently urged citizens to avoid excessive buying of gold and silver and instead support financial stability measures aimed at strengthening the rupee and reducing pressure on imports.

Market Outlook

According to market experts, global uncertainties, elevated crude oil prices, and currency volatility are likely to keep FPI flows volatile in the near term. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

India needs reforms for MSMEs to join global supply chains: Virmani

Asianet News Central — Sun, 17 May 2026 17:00:56 +0530

Former NITI Aayog member Arvind Virmani on Sunday said India needs major process reforms, skill development, and stronger support for fast-growing exporters to help Micro, Small and Medium Enterprises (MSMEs) become a key part of global supply chains emerging under the "China Plus One" strategy.

In an exclusive interview with ANI, Virmani said MSMEs are closely linked to India's growing role in global manufacturing and Free Trade Agreements (FTAs). "MSMEs are really a critical part of these supply chains," Virmani said while referring to the China Plus One strategy, under which multinational companies are diversifying manufacturing and supply chains beyond China to reduce risks arising from geopolitical tensions and supply chain disruptions. India is emerging as a key beneficiary of this global shift, with companies increasingly looking at the country as an alternative manufacturing hub.

Deepening Domestic Supply Chains

According to Virmani, Indian electronics manufacturers are also trying to reduce dependence on imported components from countries such as China and Taiwan by building stronger domestic supplier ecosystems. "As of now, they were saying that when we have to import a lot of these components, intermediate from China or Taiwan or wherever, the cost goes up by roughly 10 to 15 per cent," he said.

To curb this problem, Virmani added that companies are now identifying smaller Indian firms that can manufacture industrial tools and components locally, helping deepen domestic supply chains.

Addressing Structural and Regulatory Bottlenecks

However, he said supply chain expansion alone will not be enough unless India also addresses long-standing structural and regulatory bottlenecks affecting MSMEs. Calling for major reforms in the regulatory system, Virmani said excessive controls and procedural burdens continue to affect small businesses.

He said many entrepreneurs continue to face problems with government portals, repeated KYC requirements and complex procedures. "I've heard this in many different contexts, KYC, repeated KYC requests, ordinary people were saying, why do we have to do 10 banks or 3 banks. You have to do it in all 3... but the whole point of KYC is you do it once," he said, adding that "a lot of process reforms are still needed."

Need for Skill Development

Virmani also stressed the need to improve job skills among self-employed workers and micro entrepreneurs, whom he described as "nano entrepreneurs". "What we have neglected... in the last 75 years, we have not provided these people with job skills," he said.

He said state governments must play a larger role in improving grassroots productivity and income generation through skill development programmes.

Shifting Focus to Successful MSMEs

Virmani also criticised the tendency to focus only on struggling MSMEs while ignoring successful exporters and startups that are growing rapidly. "What we are not doing, look at the top, which are the MSMEs which are doing well," he said.

"We don't get enough advice from those who are growing, find out what they need, keep helping them because that's how countries grow," he added. He further said many innovative startups in India are struggling despite developing globally relevant technologies.

Citing one example, Virmani spoke about a startup that had developed an AI-enabled distributed food processing system suited for India's decentralised food sector. "We only focus on who is failing, how to protect them, not how to make sure the people who are good, who are successful, can grow bigger," he said.

According to Virmani, India's long-term growth will depend on helping competitive MSMEs scale up and integrate into global manufacturing ecosystems. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

India must overhaul tax, prioritise FTAs for 'China-plus-one': Virmani

Asianet News Central — Sun, 17 May 2026 16:00:41 +0530

As global corporations actively diversify their supply chains away from China under the "China-plus-one" strategy, India must aggressively overhaul its tax bureaucracy, streamline single-window clearances, and prioritise Free Trade Agreements (FTAs) with developed economies.

Speaking to ANI, prominent economist and former NITI Aayog member Arvind Virmani, said these structural and external trade reforms are vital for India to successfully capture shifting global investments and overcome domestic bottlenecks.

Overhauling India's Manufacturing for Global Competition

While India has made notable strides via policy shifts and targeted incentives like the Production-Linked Incentive (PLI) scheme, Virmani noted that significant "transition costs" still deter companies from uprooting established bases in China. Historically, Indian manufacturing suffered from a lack of scale. However, Virmani emphasised that competing with China does not require duplicating its massive factory footprints. In economics, a firm only needs to hit a specific threshold to be cost-competitive. If a Chinese factory employs 10,000 workers, an Indian firm can successfully compete with 5,000 employees by scaling efficiently. "You can have two, three factories of five, five... You can compete with that ten," Virmani explained, urging the continuation of the PLI scheme to bridge this gap.

The Production Linked Incentive (PLI) Scheme was launched in 2020 as a strategic reform initiative to strengthen India's manufacturing base, reduce import dependence, enhance global competitiveness and generate employment. The Scheme incentivises incremental production through performance-linked financial incentives, thereby enabling scale, technology adoption and supply chain integration.

Addressing Key Grievances of Foreign Investors

Tax Administration and Procedural Hurdles

Virmani candidly identified the central government's tax administration, encompassing income tax, GST, and tariffs, as the primary grievance for foreign investors. "The foreigner talks to another foreigner who says, "Our case has been going on for twenty years.' That's a big negative. It's a bad signal to people," he said. The problem, he added, stems from the system's tendency to appeal every lost case to a higher level, stretching resolution.

GST also has "identified issues which affect cross-border investment," Virmani said. The problem often isn't the policy itself but the process. "There may be a real issue, but the way it is implemented, the process is wrong. If you can change the process, you can minimise the negative effect."

He attributed these gruelling, decades-long disputes to a systemic bureaucratic tendency to appeal every lost case to higher courts.

Digital Infrastructure Failings

Furthermore, while digital transitions in Special Economic Zones (SEZs) were meant to cut paperwork, system outages during critical export windows leave businesses stranded without alternative channels. "If it doesn't work when you need it, it's no good because the other channel is gone. There is no alternative," he said.

Urgent Reforms Required at the State Level

At the state level, Virmani called for two urgent interventions: Genuine Single-Window Clearances: A few states excel here, but many only claim to have functional single windows on paper, severely hurting their investment inflows. "Where they just say there is a single window, but there isn't, those states don't do well," he said.

Second is addressing legacy image problems. States like Andhra Pradesh and Uttar Pradesh have improved their business environment, but investors may still carry an "old days" perception, he said. "There is also this image problem which has to be addressed."

Virmani advised states to proactively pitch directly to specific multinational companies (MNCs) in targeted sectors, such as electronics. "Define what the sectors are they want, and identify the MNCs. Let's say UP wants electronics companies. Focus on electronics, identify five of them and go individually and say, 'Come and set up. What can we do to facilitate?"

A Strategic Pivot on Free Trade Agreements (FTAs)

Why India Avoided RCEP and Focuses on Developed Nations

Virmani strongly defended India's controversial 2019 decision to opt out of the Regional Comprehensive Economic Partnership (RCEP), despite widespread criticism from fellow economists at the time. He argued that because India's economy directly competes with ASEAN and RCEP nations, acting as a substitute, joining would have flooded domestic markets with competitive goods without offering distinct structural advantages. "Everybody else, my friends included, criticised India for doing this," he said. "But this was the right thing to do."

The reason, Virmani explained, is that India's economy competes directly with most ASEAN and RCEP members. "The Indian economy is a competitor to most of the ASEAN and RCEP states," he said. Signing FTAs with countries that produce the same goods would expose Indian manufacturers to competition without offering clear advantages.

Conversely, he argued India should focus heavily on developed markets like the US, UK, and EU due to deep structural complementarities. Virmani stressed that Free Trade Agreements with developed countries are crucial to making India part of global value chains that are moving out of China. He said, India should "focus on FTAs with developed countries where we are complementary."

The complementarity stems from demography. Developed nations face shrinking workforces, while India's labour force is still growing. "Their demography is negative, ours is positive," Virmani said. In return, high-income countries bring advantages in technology, risk capital, and current market demand.

India's advantage lies in human capital across all skill levels - low-skilled, semi-skilled, and high-skilled labour.

Leveraging FTAs to Attract MNCs

For multinational companies, India offers future demand while developed markets offer current demand. That solves a key challenge for firms relocating under the China-plus-one strategy: minimum efficient scale. "When a company comes to India, they bring their current demand. The market is already there; it's their market. So that MES problem gets taken care of," Virmani said. At the same time, "the future demand is very attractive in India compared to any other country, the most attractive for the future."

Combining India's labour and market potential with the technology and capital of developed-nation MNCs creates an opportunity to build new supply chains. But that ecosystem "takes time," he said, and the government must facilitate the transition. The PLI scheme is one such effort to help firms achieve scale and shift operations.

Delays in FTA Finalisation: A Challenge from Abroad

Because these new FTAs are complementary rather than competitive, Virmani said he sees no major risk to domestic companies, unlike with RCEP-style deals. "I don't see a risk from these new FTAs as there was from the old for the reasons I have just told you. They are complementary versus substitute." The main bottleneck, he said, is no longer on India's side. The Indian government has more flexibility to sign and approve FTAs than the US or Europe, which have "very complicated procedures of approval."

Virmani pointed to the India-EU FTA as an example. After agreement, Europe said the formal legal process may take a year, meaning end-2024. "Now they are saying it may be notified only in 2027," he said. "That is not a problem from our side. That is a problem from their side."

Similar delays have affected the UK and New Zealand agreements. Even though terms were agreed in "one or two months," formalisation has taken much longer. "Unfortunately, it is not in our hands really, but the government is making efforts to convince those people to try and speed it up," Virmani said.

Potential Growth Sectors and Ongoing Negotiations

While Virmani did not list specific sectors, his framework suggests that industries that benefit from technology transfer, global demand, and labour-intensive production stand to gain the most. These include electronics, pharmaceuticals, textiles, auto components, and IT services, sectors where India can pair its workforce with MNC technology and access developed-country markets through tariff-free access. The goal, he said, is to use FTAs to build supply chains that combine comparative advantages: "The comparative advantages of the MNCs from high-income countries and of India."

India has signed or concluded negotiations for multiple major free trade agreements (FTAs), including with the United Kingdom, Oman, New Zealand and the European Union, while negotiations are also underway with countries such as Canada, Israel, Australia, and Peru, as per the Union Commerce Ministry. Negotiations are also underway for FTAs with Peru, Chile, the Eurasian Economic Union (EAEU), Israel and Canada. (ANI)

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India's growth to hinge on design, creativity: Goyal, Shah at NID

Asianet News Central — Sun, 17 May 2026 15:30:55 +0530

Union Minister Piyush Goyal and Union Home Minister Amit Shah on Sunday said India's next growth phase would depend on turning design and creativity into scalable businesses that drive employment, productivity and global competitiveness.

They expect the new Innovation and Incubation Center (IIC) at the National Institute of Design in Gandhinagar to act as a bridge between academia and industry, helping young innovators from tier-2 and tier-3 cities commercialise ideas and position India as a world leader in design-led entrepreneurship.

The remarks came during the inauguration of the Innovation and Incubation Center (IIC) at NID Gandhinagar, an event also attended by NID officials, industry representatives and students. The centre has been set up to foster out-of-the-box thinking and link design education with commercial outcomes.

Goyal on Innovation and Entrepreneurship

The Union Commerce and Industries minister said the design was no longer just an individual pursuit but an entire way of thinking that could define India's destiny in the 21st century. He said the roadmap to a developed and prosperous India rested on three pillars: innovation, immersion in design thinking, and entrepreneurship.

Goyal argued that no country had become developed on people, natural resources or consumption alone, and that India's future would be shaped by how well it connected creative ideas with economic outcomes. "The real test is whether this innovation has improved people's lives, helped people run businesses or industries, or work better," he said. "Has it created employment? Has it strengthened our economy?"

India's Strengths and Global Standing

Goyal emphasized that India's strength now lay in its digital connectivity and youth demographic. He noted that India was the fastest in rolling out 5G and offered digital data at some of the lowest prices globally. With the world's fastest-growing economy and the third-largest startup ecosystem, he said India had nearly 1.4 million graduates every year in science, technology, engineering and mathematics.

"This very strength is making our country seen across the world as the 'most trusted partner,'" he said, adding that the next big discovery could come from Surat, Patan or Dhanbad, not just Mumbai or Delhi. He also pointed to India's success in jewellery and textiles as proof that Indian design could compete globally.

Shah Stresses on Commercialising Creativity

Shah, speaking as the local Member of Parliament whose constituency includes the NID campus, said NID's establishment in Ahmedabad in 1961 had been a deliberate move to give a platform to design talent that often remained buried in daily life. He said design was both a discipline and an art that made utilities more useful and attractive, but its commercial potential had not been fully realised in India.

"If those same vehicles had been designed in Japan, then the recognition and refinement received by Nitin Bose and the Japanese designers -- could there even be any comparison? No, there could not," Shah said, referring to a Mahindra design showcased at the event. He stressed that NID would need to create a separate vertical to link designers with industry requirements and commercialization, since the institution currently lacked people focused on monetizing creative work.

Expanding Design's Reach

Shah said the incubation centre should expand design's reach beyond traditional fields into high-tech areas like semiconductors and chips, as well as large industrial parks. He urged NID to build systems that connected students' creative potential with career pathways so that more young people could confidently adopt design as a profession. "Only then will we be able to realize the 100% potential of design that exists in the country," he said.

A Shared Vision for a Prosperous India

Both leaders agreed that the centre's objective was to ensure creativity translated into prosperity. Goyal said incubation centers should help young people in small towns access mentors and refine ideas through online platforms, allowing a small startup to reach a global audience. He added that the future would be driven less by cheap labor and more by skilled talent and creative design.

The speeches positioned NID's new centre as more than a curriculum add-on. Goyal said industry would take design to the people while academia fine-tuned it, and Shah called for a structured approach to connect creativity with commercialization. Together, they framed the centre as a platform to unlock India's youth dividend and establish the country as a global design and innovation hub. (ANI)

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Global steel prices strengthen, Brazil emerges as strongest market: GS

Asianet News Central — Sun, 17 May 2026 15:30:28 +0530

Global steel prices continued to strengthen across major markets in April and early May, with Brazil emerging as the strongest-performing region, while China's steel production remained under pressure amid delayed implementation of capacity cuts, according to a recent Goldman Sachs report.

Global Price Performance in April

In its latest "Global Steel: The Steel Market Barometer - May Update" report, Goldman Sachs said average hot rolled coil (HRC) prices increased across almost all major regions in April, led by Brazil with a 10 per cent month-on-month rise, followed by Japan at 6.5 per cent and China at 2.9 per cent.

"On a YTD basis, Brazil's HRC steel price performance has been the strongest in our sample (+21%), followed by the US (+15%) with other regions also showing price increases from 6%-13%," the report said.

Global long steel prices also saw gains during April. According to Goldman Sachs, Brazil again recorded the sharpest increase in rebar prices at 12 per cent month-on-month, followed by Europe at 6.9 per cent and the Black Sea region at 6.1 per cent.

China's Production and Capacity Cuts

On the supply side, the report noted that China's steel production continued to contract on a yearly basis in the first two weeks of May. Goldman Sachs said China's steel output was down 3.2 per cent year-on-year compared to the same period last year.

Commenting on China's steel sector, Goldman Sachs said, "On the industry level, while the anti-involution effort and long-term capacity cut plan for the Chinese steel sector remain intact, we see delayed execution in 2026E in terms of both capacity and production discipline."

Diverging Trends Across Major Steel Economies

The report also highlighted diverging trends across major steel-producing economies. In Europe, crude steel production increased 16 per cent month-on-month in March, though it remained down 3 per cent both year-on-year and on a year-to-date basis.

In the United States, average weekly steel production rose 3 per cent month-on-month in April, while utilisation rates averaged 79.6 per cent, improving both sequentially and annually.

India, meanwhile, continued to remain one of the fastest-growing steel markets globally. Goldman Sachs said India's crude steel production growth accelerated to 11 per cent year-on-year in March, compared with 10 per cent growth in the year-to-date period and 7 per cent growth in February.

China's Demand and Future Price Outlook

The report further noted that infrastructure activity in China remained relatively strong despite weakness in the property market. Goldman Sachs said infrastructure investment excluding water and power supply rose 8.9 per cent year-on-year during the first three months of 2026.

According to the report, manufacturing activity in China improved in March, while construction activity weakened, reflecting uneven demand trends within the broader steel-consuming sectors.

Goldman Sachs also projected relatively stable steel prices across key global markets through the rest of 2026, with US steel prices expected to remain stronger than those in Europe, China and Brazil. (ANI)

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Adani Group to boost Bihar's infra with long-term development focus

Asianet News Central — Sun, 17 May 2026 15:00:50 +0530

Adani Group Chairman Gautam Adani on Sunday said the group has placed "additional emphasis" on infrastructure development in Bihar, while underlining that the group's investments in the state will be driven by a commitment towards public service and long-term development.

Speaking at the inauguration of the Adani Akhand Jyoti Eye Care Hospital at Mastichak in Saran district, Adani said the group is focusing on infrastructure development projects in Bihar that can be "realistically achieved" over the next three to four years. "We have placed additional emphasis on the infrastructure sector in Bihar, focusing on what we can realistically achieve within the state over the next 3 to 4 years," Adani said during his address.

A Mantra of Service

While speaking about the group's broader philosophy, Adani said the conglomerate believes in combining business growth with service to society. "The Adani Group operates on a specific mantra: 'business ke saath mein seva hi Sadhana hai'. Guided by this mantra of service, every future endeavour of ours will continue in the same spirit; we are not here solely for the sake of business," he said.

Adani further said that the group would continue evaluating the needs of the people and available opportunities in Bihar while planning future projects in the state. "Furthermore, it is crucial for us to assess what resources and opportunities are available here for the public; that remains a priority, and we will continue to work towards fulfilling those needs," he added.

Adani Akhand Jyoti Eye Care Hospital

The comments came as Gautam Adani, along with Priti Adani, inaugurated the Adani Akhand Jyoti Eye Care Hospital in Saran. The hospital is expected to strengthen access to eye care services in the region and forms part of the group's social infrastructure initiatives.

Bihar's Investment Landscape

Bihar has increasingly emerged as a focus area for infrastructure and investment-related announcements, with companies exploring opportunities across sectors such as logistics, healthcare, energy, and public infrastructure.

Adani's remarks signal the group's intent to expand its engagement in the state over the next few years while linking business activity with community-focused initiatives. (ANI)

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GDP growth not enough, structural reforms key for India: Arvind Virmani

Asianet News Central — Sun, 17 May 2026 15:00:28 +0530

GDP Growth vs. Inclusive Development

Former NITI Aayog member Arvind Virmani on Sunday highlighted the difference between headline growth and inclusive development and called for the structural reforms in education, job skilling and public health.

Speaking with ANI, Virmani underscored that while a high GDP growth rate (such as India's consistent 6.5% to 7%+ trajectory) looks excellent on a macroeconomic scoreboard, it doesn't automatically translate to widespread wealth. For that growth to actively lift the bottom 50% to 60% of the population, the structural foundation of human capital must be reformed. His argument rests on a crucial macroeconomic formula: Sustained Fast GDP Growth to Accelerated Per Capita GDP to Higher Average Welfare.

However, to unlock this chain reaction, he outlines three major structural bottlenecks that India must fix. "If you accelerate GDP growth, that accelerates per capita GDP and makes the average welfare of the people higher," he said. But beyond faster sustained inclusive growth, he stressed the need for it to be "sustained fast growth." "There have been many welfare programs, for example, electricity etc so one part of it is what we call public goods, and there has been a lot of that, so in my view again the focus needs to shift much more strongly to building capabilities," Virmani argued that inclusion depends on building public goods and individual capabilities.

The Education and Credentialism Crisis

Virmani pulled no punches on India's education crisis, pointing out a stark reality: 50% of Indian children cannot read basic text even after completing primary school. He said India remains too focused on "credentialism", awarding certificates, rather than actual learning. He said roughly 50% of children cannot read a basic text even after completing primary school.

"We have completed primary, they have a degree or certificate, but they can't read," he said. "We have to increase this focus on minimum reading, not just think that they passed primary."

He pointed to Uttar Pradesh as proof that change is possible. Minimum reading proficiency in the state has risen by 10 percentage points over the last decade. "It is not rocket science; it can be done. But the focus has to be there. That's how you get broad-based growth if everybody has that basic learning, not just a piece of paper," Virmani said.

The Need for Job Skilling

Secondly, job skills, he said, are the second pillar of broad-based growth. Only 2% of India's school population is in vocational education and training. For India's per capita income level, that figure should be closer to 20%, he added.

"We are not giving them the job skills which will raise their real income. Higher real wages come from higher productivity," Virmani said. "We somehow have a mental attitude that skills are not the important thing, it's that piece of paper." While schemes like Vishwakarma exist, he said, implementation lags because education and skilling are state subjects. The National Education Policy recognises holistic education, but "people who are actually on the ground are not realising how important this is," he added. The Pradhan Mantri Vishwakarma Kaushal Samman Yojana was launched in 2023 to uplift the lives of these artisans and craftsperson by enhancing their skills and increasing the reach of their products and services. It aims to provide end-to-end holistic support to artisans and craftspeople for their respective trades. It emphasises encouraging the trades in rural and urban areas, with special attention to women empowerment and marginalised or underserved groups like the Scheduled Castes, Scheduled Tribes, OBCs, Specially Abled, Transgenders, residents of NER states, Island Territories, and Hilly Areas.

Public Health and Infrastructure Deficit

On state-level cash transfer schemes for women and unemployed youth, Virmani said governments running out of public goods to provide often turn to "freebies." A better alternative, he said, is investment in public health infrastructure.

"Sanitation and sewage, we have done a lot on private toilets, but the systems have not improved," he said. "You need a modern sewage system all over the country. Our metros are groaning. I have been to industrial areas where there was no sewage system."

Cleanliness, sewage networks and basic road maintenance are still missing across large parts of India, he said. "We can never be called a developed country unless your sewage systems, your drainage systems work. I have driven on village roads where there were big holes. Water collects, germs will collect."

Virmani said public health, women's education and child nutrition are deeply linked. Research shows that an educated mother reduces child malnutrition and mortality. "When we think of health, we think of individual problems like heart issues. But this is public health," he said.

The Path Forward: State Responsibility and Citizen Awareness

Since education, health, and sanitation are largely state responsibilities, Virmani said the Centre can only provide incentives. However, the real shift has to happen at the ground level. He called on the media to educate citizens about the value of public goods.

"We have this idea that something we get is good, but what everybody gets is not. But that is actually much better for your children if they have clean parks, clean roads, if there's a public toilet wherever you need it," he said. For India's growth to be truly inclusive by 2047, he concluded, states must prioritise minimum learning, job skilling, and sanitation systems over short-term transfers.

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

S&P 500's Path Tied to AI Outlook, Goldman Sachs Warns of Reversal

Asianet News Central — Sun, 17 May 2026 14:30:24 +0530

The trajectory of both momentum and the broader S&P 500 would be dictated by the macroeconomic backdrop and the outlook for AI investment, Goldman Sachs said in a research report released this week.

The brokerage warned that while the momentum could extend for another month, sharp rallies near market highs had historically led to below-average returns in the following months. It added that a downturn in AI capex or a spike in equity and bond volatility could trigger a "catch down" reversal, while an improved macro outlook might instead spark a catch-up rally in laggards.

AI and Momentum Drive 'One Big Trade'

Goldman Sachs noted that the strength of the AI trade had lifted the S&P 500 to 14 new highs in the past month, even as market breadth narrowed and Momentum surged. The index had returned 10% year-to-date, with technology contributing 85% of that gain while the S&P 500 excluding technology rose just 3%. The rally had also driven a 25% return in the Momentum factor over the past three months, one of its sharpest upswings on record.

"With AI and momentum moving hand in hand and driving the direction of the S&P 500, many investors have expressed the view that the equity market today is 'one big trade' rather than 'a market of stocks,'" Goldman Sachs wrote.

Historical Precedents

The brokerage said similar sharp Momentum rallies since 1980 had typically extended for another month before peaking and turning lower. It pointed to mid-1998, late 1999, mid-2015 and late 2021 as episodes where Momentum gains near market highs were followed by soft equity returns in the near term. In contrast, Goldman Sachs observed that some of the sharpest Momentum rallies during downturns, such as in September 1990 and March 2020, had preceded strong average S&P 500 returns in the subsequent 3-6 months.

Role of Earnings Estimates

Much of the recent market momentum had been supported by rising earnings estimates, Goldman Sachs said. Bottom-up consensus for S&P 500 EPS in 2026 and 2027 had each risen by 8% YTD, with most of the revisions tied to higher AI capex spending and elevated energy prices.

"Excluding AI infrastructure and Energy companies, S&P 500 2027 EPS estimates have been flat YTD," the brokerage noted. Still, EPS revision breadth had been positive across every sector in the past month, and stocks with the strongest revisions had generally outperformed.

Investment Strategy and Outlook

Goldman Sachs, referring to its recent conversations with portfolio managers, said the main challenge was finding investment opportunities not tied to a view on AI. It advised investors to focus on equities with fundamental support from earnings growth and revisions, regardless of whether those earnings were driven by AI or other tailwinds.

At a sector level, Consumer Staples screened as having the least exposure to AI or Momentum. The brokerage also highlighted an "Insensitive Portfolio" of companies with positive recent EPS revisions and the lowest share price sensitivity to Momentum moves. (ANI)

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India's trade deficit under pressure from high crude, weak exports

Asianet News Central — Sun, 17 May 2026 13:00:23 +0530

India's trade deficit is likely to remain under pressure in the coming months as elevated crude prices, supply-side disruptions and a potential global demand slowdown weighed on exports, according to a research report by Nuvama Institutional Equities. It added that while Rupee depreciation could offer some competitiveness support, the recent hike in bullion import duty might provide the only near-term relief to the overall deficit.

Deficit Widens in April

India's goods trade deficit widened to USD 28 billion in April 2026 from USD 21 billion in March, with both oil and gold deficits rising by roughly USD 2 billion each, the brokerage said. The core deficit, excluding oil and gold, deteriorated to USD 13 billion from USD 9 billion, driven by higher shortfalls across chemicals, electronics, ores and agriculture.

Electronics Deficit Hits All-Time High

"The electronics deficit rose by USD 0.7 billion to an all-time high of USD 7.6 billion," Nuvama said, highlighting it as the key driver of the broader widening.

Export and Import Performance

Exports showed a rebound on a weak base, with goods exports expanding 14% YoY in April after contracting 7.4% in March. On a trend basis, export growth improved to 1.6% from -2.8%, though Nuvama described the underlying momentum as still subdued. Non-oil exports recovered modestly to 1.4% YoY from -1.5% in March, led by a sharp pickup in electronics exports to 13% YoY from 1%. Labour-intensive exports, however, remained in contraction at -9% on a trend basis. "Overall exports improved, but underlying momentum remains weak," the brokerage wrote.

Imports also strengthened, with goods imports rising 10% YoY after a 6% decline in March. Trend import growth moderated to 9% from 12%, largely due to a sharp slowdown in gold imports to 63% from 138%. Oil imports continued to contract at -15%. In contrast, core imports excluding oil and gold accelerated to 11% from 7%, powered by a jump in electronics imports to 29% from 18%. Machinery imports, seen as a capex proxy, slowed to 13% from 19% on a trend basis.

Uncertain Outlook and Potential Relief

Nuvama cautioned that the export outlook remained uncertain amid ongoing supply disruptions and high crude prices. "Any slowdown in global demand poses additional downside risks," it said.

The brokerage added that Rupee depreciation could provide a partial offset by improving export competitiveness over the near to medium term. It also pointed out that the recent increase in bullion import duty could help contain the gold import bill and offer some relief to the overall trade deficit. Th brokerage noted that while the headline deficit had widened sharply, the composition reflected stronger domestic demand for electronics alongside weaker external demand for labour-intensive goods. (ANI)

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Arvind Virmani's roadmap for India amid West Asia tensions crisis

Asianet News Central — Sun, 17 May 2026 12:30:28 +0530

Former NITI Aayog member Arvind Virmani on Sunday outlined a strategic roadmap as escalating geopolitical tensions in West Asia disrupt global supply chains and drive up energy costs. Speaking with ANI, Virmani suggested navigating this crisis by adopting a two-pronged strategy by implementing a gradual pass-through of rising oil and gas prices in the immediate term, while aggressively accelerating long-term structural reforms across its solar, storage, and distribution networks.

Warning that the macroeconomic impact of the West Asian conflict is already registering across the Indian economy, Virmani said, "India imports 70 to 80 per cent of its oil and gas. The price increase has already taken place to the extent that war has disrupted logistics through the Gulf and also production facilities." Because India relies on imports for 70 to 80 per cent of its oil and gas requirements, supply-chain bottlenecks in the Gulf and disruptions to production facilities have immediately inflated the nation's import bill. According to Virmani, this hit to national income is already a reality.

Short-Term Strategy: Managing Price Pass-Through

The critical policy challenge now lies in how the government distributes these elevated costs across the economy. Virmani identified three core levers for managing the price. "There are three elements to pass-through, and that is the choice the government makes. First, how much do oil companies absorb the price increase instead of passing it on fully or partially? Second, how much does the government absorb, either through excise reduction or other means? And finally, what is passed through to consumers," Virmani said. Consumers, he said, include industry as well as households.

Logistics disruptions have already pushed up global prices of key inputs like sulphur, polypropylene and fertiliser. "World prices are up. For fertiliser, the government is involved, so the subsidy will automatically go up and that will affect the fiscal," he said.

Given the uncertainty, Virmani said the best approach is a gradual increase in domestic oil and gas prices as more information comes in. "Some of the oil prices have gone up. The earlier WPI showed that sulphur-related items had gone up. So that is the process of gradual pass-through," he said.

Long-Term Vision: Accelerating Energy Reforms

For the medium to long term, Virmani said India must incentivise alternative energy sources, with solar as the biggest opportunity. While government policies, PLI schemes and the EV push have helped, "more remains to be done," he said. "In the short term, I think a gradual rise of particularly oil and gas prices is necessary, so it gives the right signals to industry because they have to adapt, they have to find alternative sources, they have to minimise the use, etc. In the longer term, I think the real issue is to incentivise alternative sources of energy. Solar is a big opportunity in India. Of course, the government and the public have been doing a lot on that, but there is more to be done. Partly because we have a market system, we have given incentives for PLI, EVs, etc., but more remains," he said.

Incentivising Solar Adoption and Storage

He highlighted time-of-day pricing as the most critical reform for solar adoption. "Production of solar occurs in the middle of the day when there's a lot of sunlight. But much of the use is focused on the evening when the sun goes down. Time-of-day pricing incentivises adjustment, particularly by industry, to shift production away from peak-demand hours when prices are high," Virmani explained. This must be paired with accelerated investment in storage, he said. "Much of the production occurs mid-day, so you have to store it if you want to use it in the evening or morning. Storage is very important."

In April, Union Minister for New and Renewable Energy and Consumer Affairs, Food and Public Distribution, Pralhad Joshi, stated that India ranks third globally in Renewable Energy Installed Capacity, according to the Renewable Energy Statistics 2026. He said India has moved ahead of Brazil in the ranking. The International Renewable Energy Agency released the statistics as of December 2025.

Distributed Renewable Energy (DRE) from Solar has emerged as a significant component of this growth, contributing 16.3 GW (36%) out of the 44.61 GW installed during 2025-26. This includes 7.6 GW under PM KUSUM and 8.7 GW from rooftop solar.

According to the Ministry, India crossed the 150 GW milestone with a cumulative installed solar capacity of 150.26 GW as on March 31, 2026. 150.26 GW includes 110.43 GW of Utility scale, 25.73 GW of Roof top and 14.10 GW of KUSUM & off-grid projects.

Urgent Need for Distribution System Reform

Virmani also called for urgent reform of the electricity distribution system to handle solar power and new loads like induction cooking and EV charging. Citing cases abroad where distribution networks collapsed under sudden demand spikes, he said reforms must be coordinated rather than done through isolated incentives.

He pointed to Andhra Pradesh as a "ray of hope" after the state freed up its distribution system. "They are saying anybody who wants to set up a data centre is free to generate their own electricity and distribute or not distribute. Freeing up the distribution system can have great efficiency effects," he said.

The Government of Andhra Pradesh has introduced a free electricity program for handloom and power loom weavers. Through this initiative, handloom units receive up to 200 units of electricity free every month, while power loom units are provided 500 free units monthly at no charge. Around 93,000 handloom weavers and 11,488 power loom weavers are expected to benefit directly from the scheme. To support the program, the government plans to allocate nearly Rs 150 crore each year.

"These are some of the things we have to do in a coordinated manner now, rather than just giving individual incentives and letting it happen," Virmani added.

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Indian banks' asset quality stable despite Gulf war worries: Report

Asianet News Central — Sun, 17 May 2026 10:00:25 +0530

During the March quarter, Indian banks managed to keep asset quality largely stable, shrugging off worries faced due to the ongoing Gulf war. Brokerage firm Systematix warned that the true impact of the West Asia conflict was likely to surface only in the second half of the financial year 2026-27. Despite this, the brokerage maintained a constructive outlook on the sector, citing buffers from government schemes like CGSMFI 2.0 and ECLGS 5.0.

Impact on Margins and Yields

"The repo rate cut of 25 basis points in December weighed on yields in the March quarter, with the full impact flowing through to the Yield on Advances (YoA)," Systematix noted. For SBIN, AXIS Bank and Indian Bank, the sequential decline in Yield on Advances was steeper than peers. Although some benefit came from the downward repricing of deposits, it was limited for a few banks, resulting in a sequential contraction in Net Interest Margins (NIMs) for SBIN, Union Bank, Indian Bank and AXIS Bank.

Large private banks fared better. ICICIBank and HDFC Bank managed to keep NIMs largely stable with a slight upward bias, improving by 2 bps and 3 bps QoQ, respectively. In contrast, PSBs faced sharper compression, with SBIN's NIM falling 17 bps QoQ to 2.81 per cent and Union Bank's down 12 bps to 2.64 per cent, as their higher share of EBLR and T-bill-linked loans bore the brunt of the rate cut.

Federal Bank and Bank of Baroda reported improved NIMs, but Systematix noted these were largely driven by one-offs such as interest on income tax refunds and higher recoveries from written-off accounts. Kotak Mahindra Bank's 13 bps expansion to 4.67 per cent was aided by day-count benefits, though normalised NIM was flat at 4.54 per cent.

Asset Quality and Slippage Trends

Asset quality remained broadly in check. Most coverage banks reported a net slippage ratio below 80 bps, with the exception of IndusInd Bank. Slippages increased marginally for seven of the 12 banks, while five saw a decline. IndusInd led the improvement with an 85 bps QoQ drop to 2.2 per cent as stress in the microfinance segment eased, followed by Kotak Mahindra and AXIS Bank. Among PSBs, SBIN continued to report a low 0.5 per cent slippage ratio, while Bank of India and Bank of Maharashtra saw modest upticks.

Credit Costs and Provisions

Credit costs were mixed as banks created buffer provisions amid geopolitical uncertainty. ICICIBank posted the lowest credit cost at 0.03 per cent, supported by strong corporate recoveries, while AXIS Bank and Federal Bank raised one-time prudent provisions of ₹20.01bn and ₹4.56bn, respectively. Bank of Baroda and Union Bank also made additional provisions for floating and standard assets.

Advances and Deposit Growth

Advances growth held up, with the coverage universe expanding 5.2 per cent QoQ and 14.9 per cent YoY. Bank of Maharashtra led with 6.9 per cent QoQ growth, while AXIS Bank was the fastest among large private banks at 6.4 per cent QoQ. Deposit growth outpaced advances at 6.1 per cent QoQ, helped by 4Q seasonality. HDFC Bank recorded the strongest sequential deposit growth at 8.6 per cent QoQ.

Capital Adequacy and ECL Framework Transition

On capital, banks guided that they were confident of managing the transition to the new Expected Credit Loss (ECL) framework notified on 27 April, estimating a 0.7 per cent to 2.5 per cent impact on capital adequacy.

Systematix concluded that while upside risks to asset quality persisted, the overall sector outlook remained positive. (ANI)

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Demand-side push could save India $37.8 bn in forex: Report

Asianet News Central — Sun, 17 May 2026 09:00:39 +0530

In a bid to safeguard macroeconomic stability against volatile global commodity shifts, a report by Brickwork Ratings revealed that a strategic, consumer-led "demand-side push" could help India save up to USD 37.8 billion (approximately ₹3.59 lakh crore) in foreign exchange reserves.

With crude prices likely to stay above USD 100 per barrel for the rest of 2026 and the rupee under pressure near Rs 95/USD, Brickwork Ratings said Prime Minister Narendra Modi's seven behavioural appeals could provide India with a USD 37.8 billion forex buffer this fiscal year.

The Strategy: Voluntary Demand Reduction

The report argues that voluntary demand reduction across fuel, gold and fertilisers may offer the government fiscal breathing room at a time when its ability to absorb oil price pass-through is thinning.

The seven appeals -- work from home, avoiding foreign travel, postponing gold purchases, fuel conservation, cutting edible oil consumption, promoting natural farming and adopting swadeshi products -- are aimed at lowering import dependence across energy, trade and agriculture.

Breaking Down the Potential Savings

Brickwork estimated that even a modest 10% reduction in crude imports could save USD 13.4 billion, while a 50% cut in fertiliser imports could yield USD 7.3 billion in savings. Similarly, a one-year suspension of non-essential foreign travel could retain USD 7.9 billion domestically under the Liberalised Remittance Scheme, and a 10% drop in gold demand could save USD 7.2 billion.

Easing the Fiscal Dilemma

The rationale is clear: at USD 100+ per barrel, India's import bill rises sharply, making inflation harder to control. "The government's fiscal dilemma is that cutting fuel taxes reduces revenue, while passing costs to consumers pushes inflation up," the report noted.

Voluntary demand reduction, it says, eases pressure on both fronts simultaneously by slowing the pass-through of global oil prices to the Consumer Price Index. Work from home and fuel conservation are seen as immediate levers. "Reducing domestic fuel demand buys the government fiscal space -- avoiding both a revenue hit and an inflationary shock," Brickwork stated.

Tackling Key Import Vulnerabilities

The appeals also target India's external vulnerabilities, particularly gold and fertilisers. With gold accounting for roughly USD 72 billion of imports in FY26, curbing purchases can directly free up foreign exchange to manage the higher oil bill.

Natural Farming: A 'Triple Macro Dividend'

On fertilisers, while India is near self-sufficient in key nutrients, 25-30% of total needs are still imported, leaving the sector exposed to global supply shocks. The report highlights natural farming as a "triple macro dividend" that cuts fertiliser imports, reduces subsidy burden and improves soil health.

Long-Term Structural Safeguards

The Swadeshi push is positioned as a structural safeguard. By promoting Indian-made goods, the appeal reinforces MSMEs and rural supply chains while reducing dependence on volatile global markets.

However, Brickwork cautioned that benefits depend on timing and substitution effects -- for instance, reduced gold imports will only conserve forex if households do not shift to other imported assets.

Conclusion: A Pivot to Proactive Demand Management

The report concluded that the appeals represent a pivot towards proactive demand-side management. If implemented at scale, they could stabilise the rupee at current levels and shield the fiscal deficit from prolonged commodity volatility.

"This strategic shift builds the structural resilience necessary to decouple domestic growth from global commodity volatility across energy, trade, and agriculture," Brickwork said. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

India tightens silver import rules, shifts status to 'Restricted'

Asianet News Central — Sat, 16 May 2026 21:30:23 +0530

The Centre has tightened import rules for certain categories of silver bars by changing their import status from "Free" to "Restricted" with immediate effect, in a move that comes amid rising concerns over India's import bill, pressure on the rupee, and global uncertainty linked to the ongoing West Asia crisis.

New Import Policy Details

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, issued a notification on Saturday, amending the import policy for specific categories of silver covered under Chapter 71 of the Indian Trade Classification (ITC) Harmonised System (HS) 2022 import policy schedule.

Under the revised policy, import of silver bars -- containing 99.9 per cent or more silver by weight (ITC HS Code 71069221) and 'Bar---Other' categories (ITC HS Code 71069229) -- which were earlier freely importable subject to RBI regulations, will now be classified as "Restricted".

Certain categories of silver imports have also been brought under Reserve Bank of India regulations. Importers will now need to comply with 'Policy Condition No. 7 of Chapter 71 of ITC (HS) 2022, Schedule-I' with immediate effect.

"The import policy of items covered under ITC HS Code 71069221 and 71069229 are revised from 'Free' to 'Restricted' subject to Policy Condition No. 7 of Chapter 71 of ITC (HS) 2022, Schedule-I (Import Policy) with immediate effect," the DGFT notification stated.

Economic Rationale and Market Context

The DGFT notification said the revised import policy has been issued under provisions of the Foreign Trade (Development and Regulation) Act, 1992 and the Foreign Trade Policy, 2023.

The move comes at a time when gold and silver prices have remained volatile due to geopolitical tensions in West Asia, which have pushed investors globally towards safe-haven assets such as precious metals and the US dollar.

The rupee has also come under pressure against the US dollar in recent weeks amid higher crude oil prices and global risk aversion linked to the regional conflict.

Prime Minister Narendra Modi had recently urged citizens to reduce dependence on gold purchases and focus more on productive financial investments, while highlighting concerns around large precious metal imports and their impact on the economy.

Analysts say India's large-scale imports of gold and silver increase pressure on the country's trade deficit and foreign exchange outflows, especially during periods of rupee weakness and elevated global commodity prices. (ANI)

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HP RERA clarifies on JDAs: Only 5 projects involve non-agriculturists

Asianet News Central — Sat, 16 May 2026 20:30:34 +0530

The Himachal Pradesh Real Estate Regulatory Authority (HPRERA) has clarified that only five out of 17 real estate projects registered under Joint Development Agreements (JDAs) since 2020 involve non-agriculturist partners, amid an ongoing controversy over alleged violations of Section 118 of the Himachal Pradesh Tenancy and Land Reforms Act in housing projects across the state. The clarification was issued by HPRERA Chairperson RD Dhiman in response to queries raised by the Housing Department regarding housing projects executed under Joint Development Agreements (JDAs).

"A total of 17 projects since 2020 to date have been registered with JDAs. In case of 12 projects, JDA partners are agriculturists. However, projects registered where the JDA partners are non-agriculturists are only five," Dhiman said. He maintained that all registrations were carried out strictly in accordance with the provisions of the law and applicable RERA regulations.

The Chester Hills Controversy

The issue has gained significance following allegations of irregularities linked to the controversial Chester Hills housing project in Solan district, where questions have been raised regarding compliance with Section 118 of the Himachal Pradesh Tenancy and Land Reforms Act, 1972, which restricts non-agriculturists from purchasing or developing agricultural land without prior government permission.

Dhiman clarified that all five projects involving non-agriculturist JDA partners had been registered before October 17, 2023, when the Principal Secretary (Revenue) issued a clarification stating that even JDA partners were required to be agriculturists under the provisions of Section 118. "All five projects where JDA partners are non-agriculturists pertain to the period prior to October 17, 2023," Dhiman stated.

Referring specifically to the Chester Hills-2 and Chester Hills-4 projects, the HP RERA chairman said the state government had already examined the issue. "In respect of Chester Hills-2 and Chester Hills-4, the Chief Secretary (Town and Country Planning), through an order issued in November 2025, held that no violation of Section 118 had taken place since the Joint Development Agreement was a non-est document," he said.

Vigilance Bureau Probe Ordered

The controversy has intensified after a letter dated May 7, 2026, issued by Additional Secretary (Housing) Suneel Verma on behalf of Himachal Pradesh Chief Secretary Sanjay Gupta directed the Vigilance Bureau to obtain all records and documents relating to HPRERA-registered JDA projects in the state. The Vigilance Bureau has specifically been asked to collect details regarding projects where JDA partners are non-agriculturists and cases where JDAs were later cancelled with HPRERA approval. Officials have been asked to furnish the report within 15 days.

The Chester Hills project in the Solan district has emerged as a major political and administrative controversy, with allegations involving benami transactions, illegal land dealings and suspected violations linked to nearly 275 bighas of land. Earlier, Jagat Singh Negi, the state's Horticulture Minister, had stated that preliminary findings suggested possible violations involving nearly 150 bighas of land valued at around Rs 300 crore, though he maintained that conclusions would depend on the outcome of the official inquiry. The matter is currently under examination by the Deputy Commissioner, Solan, while opposition parties, including the BJP and CPI(M), have raised the issue prominently in the political arena.

Bureaucratic and Political Fallout

The controversy has also brought senior bureaucrats into confrontation, with former Chief Secretaries Srikant Baldi and RD Dhiman, who headed HPRERA earlier, facing allegations and counter-allegations alongside the current Chief Secretary Sanjay Gupta over the handling of the Chester Hills matter.

In an earlier communication dated April 9, 2026, Chief Secretary Gupta had sought a detailed report from the HP RERA chairman within 15 days regarding alleged inaction against the Chester Hills promoters and concerns raised on social media over possible irregularities affecting homebuyers. Following the absence of a response, the state government subsequently directed the Vigilance Bureau to independently verify the alleged violations linked to JDA projects across Himachal Pradesh.

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

BRICS merchandise trade sees thirteen-fold growth to $1.17 trillion

Asianet News Central — Sat, 16 May 2026 20:00:20 +0530

Intra-BRICS merchandise trade has grown to USD 1.17 trillion in 2024 from USD 84 billion in 2003, Commerce Secretary Rajesh Agrawal said while highlighting the growing economic cooperation among BRICS nations, according to a release issued by the Ministry of Commerce and Industry on Saturday.

While delivering the keynote address at the 2nd Meeting of the BRICS Contact Group on Trade and Economic Issues (CGETI) held in Gandhinagar, Gujarat, Agrawal said intra-BRICS merchandise trade has risen "thirteen-fold" from USD 84 billion in 2003 to USD 1.17 trillion in 2024, the release said. He added that intra-BRICS trade still accounts for only around 5 per cent of global trade, indicating "significant untapped potential for deeper trade integration, stronger value-chain linkages and enhanced economic cooperation".

BRICS' Resilience Amid Global Challenges

Agrawal underscored that BRICS has continued to grow stronger and emerged as an influential voice representing the aspirations and priorities of emerging markets and developing economies despite "rising protectionism, geopolitical tensions, supply chain disruptions, inflationary pressures and growing uncertainty".

Focus on Resilience, Innovation, and Cooperation

Held under the theme "Building for Resilience, Innovation, Cooperation and Sustainability", the meeting focused on contemporary trade issues, including strengthening the multilateral trading system, supporting the internationalisation of Micro, Small and Medium Enterprises (MSMEs), making global value chains more resilient and diversified, and expanding services trade, the release said.

Exploring Balanced Trade and New Opportunities

According to the release, the discussions also explored ways to promote more balanced trade, open new opportunities in the services sector, and advance prosperity for stakeholders, including farmers, women, entrepreneurs and businesses through greater intra-BRICS trade.

Delegates Visit GIFT City

The release further said delegates visited GIFT City in Gandhinagar on May 15 and were briefed on initiatives to develop it as a global financial hub for banking, capital markets, fund management, leasing and other financial services.

India's BRICS Export Performance

The release noted that India's exports to BRICS member countries stood at an estimated USD 82 billion in merchandise goods during FY 2025-26 and USD 31.3 billion in services in calendar year 2024, indicating further scope for expanding intra-BRICS trade. (ANI)

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NHPC net profit rises 17% to Rs 3,618 crore in FY26; adds 1,850 MW

Asianet News Central — Sat, 16 May 2026 19:30:24 +0530

The government-owned hydropower company NHPC Limited reported a 17 per cent rise in standalone net profit for FY 2025-26 to Rs 3,618 crore, while also recording the highest annual capacity addition in its history with the commissioning of 1,850 MW across three projects, according to a press release issued by the company on Saturday.

Financial Performance and Dividend

The company said its standalone Profit After Tax (PAT) stood at Rs 3,618 crore during FY26, compared to Rs 3,084 crore in the previous financial year. "Consolidated Net Profit for 2025-26 stood at Rs 4220 crore compared to Rs 3412 crore during last fiscal, thereby registering an increase of 24 per cent," the company said in a press release.

The Board of Directors also recommended a final dividend of Rs 0.21 per equity share for FY26, in addition to an interim dividend of Rs 1.40 per share already paid during the year.

Record Capacity Addition

NHPC said it added 1,850 MW of power generation capacity during the financial year by commissioning three projects -- Subansiri Lower Project, Parbati-II Project and Karnisar Solar Project. "During FY 2025-26, the company has added capacity of 1850 MW by commissioning 3 projects... which is the highest capacity addition during any fiscal in its history," the company said.

The company added that its standalone power stations generated 23,307 million units (MUs) of electricity during FY26 from an installed capacity of 7,401 MW across 25 power stations. NHPC, along with its subsidiaries and joint ventures, currently has a total installed capacity of 9,333 MW from 31 power stations.

Future Growth Pipeline

The company said it is currently constructing 17 projects with a combined capacity of 9,204 MW. It also has nine projects with an aggregate capacity of 10,263 MW under the clearance stage and another nine projects with an aggregate capacity of 9,830 MW under the survey and investigation stage.

(ANI)

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Netherlands a 'natural gateway' to Europe for Indian firms: PM Modi

Asianet News Central — Sat, 16 May 2026 18:30:21 +0530

Prime Minister Narendra Modi on Saturday described the Netherlands as a "natural gateway" for Indian businesses entering Europe, saying the historic India-European Union trade agreement would further strengthen ties between the two countries.

Addressing the Indian diaspora during his visit to the Netherlands, Modi highlighted growing cooperation between the two countries in areas ranging from energy security and water management to green hydrogen. "From energy security to water security, the Netherlands and India are working together across several key areas. Our cooperation in green hydrogen is especially important," Modi said during the address.

India-EU Partnership and Business Opportunities

The Prime Minister said the India-EU trade agreement would deepen bilateral partnership and create new opportunities for businesses and the Indian community living in Europe. "The historic trade agreement between India and the European Union will further strengthen the partnership between India and the Netherlands, and all of you [Indian diaspora in the Netherlands] will also benefit from it," he said.

Highlighting the Netherlands' strategic importance for Indian businesses, Modi said the country could serve as a key entry point for companies looking to expand across Europe. "For Indian businesses, the Netherlands will become a natural gateway to enter Europe," the Prime Minister said.

Role of the Indian Diaspora

Modi also underlined the role of the Indian diaspora in strengthening business and economic ties between India and Europe. "Our diaspora can serve as a trusted bridge. The diaspora understands both India's ambitions and Europe's standards," he said.

According to Modi, stronger India-Netherlands cooperation and the evolving India-EU economic partnership would also create greater opportunities for Indians living in Europe to access high-quality Indian products. "This will also create greater opportunities for Indians based here to access high-quality products from India," he added.

The Prime Minister is in the Netherlands in the second leg of his five-nation visit. This is PM Modi's second visit to the Netherlands after his previous visit in 2017. The bilateral engagement spans diverse sectors, including defence, security, innovation, green hydrogen, semiconductors and a strategic partnership on water. (ANI)

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India's Housing Market Enters Stable Phase in Q1 2026 Amid Price Rise

Asianet News Central — Sat, 16 May 2026 17:30:57 +0530

India's residential real estate market entered a more stable and demand-driven phase in the January-March quarter of 2026, with housing sales and new launches remaining largely steady across major cities even as property prices continued to rise, according to a quarterly residential market report by PropTiger.

The report showed that nearly 96,000 homes were sold across eight major cities during Q1 2026, while new housing supply remained almost unchanged from a year ago, indicating that the market was moving away from the rapid post-pandemic expansion phase toward more balanced growth.

According to the Real InsightT - Residential Q1 2026 report released by PropTiger, housing sales across the top eight cities stood at 95,973 units during the quarter, down 2.2 per cent year-on-year but up 1 per cent from the previous quarter. New launches stood at 93,065 units, almost flat compared to the same period last year.

"The Indian residential market has transitioned into a structurally more disciplined phase. Growth today is increasingly being driven by demand quality, inventory discipline, and buyer confidence rather than speculative expansion," said PropTiger CEO Prakash Tejwani.

Housing Prices Cross Rs 10,000/sq ft Mark

The report said average housing prices across major cities crossed the Rs 10,000 per square foot mark for the first time, reaching Rs 10,050 per square foot during the quarter, reflecting continued demand for premium housing projects.

Performance Across Major Cities

Bengaluru Emerges as Standout Performer

Among cities, Bengaluru emerged as the strongest-performing residential market, with housing sales rising 33 per cent year-on-year to 15,603 units. The report attributed the growth to continued hiring by Global Capability Centres (GCCs) and startup companies. "Bengaluru is Q1 2026's standout performer across all three dimensions," the report said, adding that the city's employment ecosystem was "providing Bengaluru with a structurally differentiated demand base."

MMR Remains Largest Market Despite Moderation

Mumbai Metropolitan Region (MMR) remained the country's largest housing market by both sales and value despite moderation in annual growth. Housing sales in MMR stood at 26,116 units during the quarter, down 14.9 per cent year-on-year, while new supply declined 13.2 per cent. However, sequential trends remained positive, with supply rising 10 per cent quarter-on-quarter and sales increasing nearly 2 per cent. The report said the decline in MMR reflected "base-effect normalization against an exceptional 2025 -- not a loss of demand momentum."

Hyderabad and Delhi-NCR Post Healthy Growth

Hyderabad also recorded strong annual growth, with sales rising nearly 25 per cent year-on-year to 13,297 units, while Delhi-NCR posted 11.4 per cent growth in housing sales and 17.6 per cent rise in prices.

Chennai Sees Surge Driven by Existing Inventory

Meanwhile, Chennai saw housing sales rise 43.3 per cent year-on-year, driven largely by buyers purchasing existing unsold inventory rather than newly launched homes.

Affordability Challenges and Market Supports

The report noted that rising property prices could become a challenge for buyers in the coming quarters, particularly in cities where income growth has not kept pace with housing prices. "Affordability pressure is intensifying across most top-eight markets," the report said, adding that sharp price increases in cities such as Bengaluru and Pune could test buyer affordability going forward.

At the same time, the report said stable interest rates, infrastructure expansion, and improving digital property registration systems were continuing to support buyer confidence in the residential market. (ANI)

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MoSPI seeks public feedback on framework for measuring knowledge economy

Asianet News Central — Sat, 16 May 2026 17:30:31 +0530

The Ministry of Statistics and Programme Implementation (MoSPI) has invited feedback and suggestions from stakeholders and the general public on a proposed framework aimed at measuring the economic value of knowledge and innovation-driven sectors in India.

Assessing Knowledge's Role in the Economy

In a release issued on Saturday, the ministry said the exercise aims to assess the growing role of knowledge in the economy amid "rapid technological changes, complex skill demands, and organisational innovations in a competitive environment."

"To address this need, the Ministry of Statistics and Programme Implementation (MoSPI) is undertaking an exercise to develop a framework for measuring the contribution of knowledge and knowledge products to the Indian economy," the Ministry said in the release.

According to the Ministry, the initiative is a "novel initiative" as there is no comparable precedent available for such a framework, and therefore it requires the involvement of experts and stakeholders from multiple sectors.

Expert Groups and Framework Development

The Ministry said a Technical Advisory Group (TAG) was constituted for this purpose under the chairmanship of Dr R Balasubramaniam, then Member of the Capacity Building Commission, following recommendations made during a meeting chaired by Principal Scientific Advisor to the Government of India, Prof Ajay Kumar Sood, in February 2025.

The TAG included members from think tanks, industry bodies, academia and representatives from Central Government ministries.

A brainstorming workshop was also organised in September 2025 to develop a taxonomy of knowledge products and identify indicators and data sources to measure their contribution to Gross Domestic Product (GDP).

Based on the TAG's recommendations and consultations with experts, the ministry prepared a Base Paper titled "Framework for Measuring the Contribution of Knowledge and Knowledge Products to the Indian Economy."

Contents of the Base Paper

The Ministry said the paper consists of four chapters covering conceptual aspects of the knowledge economy, available methodologies for measuring research and development, intellectual property rights, digital economy and academic output, traditional knowledge systems in India, and a proposed framework for valuation of knowledge contribution to the economy.

"The third chapter examines the prevalence of traditional knowledge in the Indian economy and its role across activities," the Ministry said.

Actionable Policy and Public Consultation

MoSPI further said it has now constituted a Committee on Knowledge Systems under the chairmanship of Ratan P Watal, former Member Secretary of the Economic Advisory Council to the Prime Minister, to prepare an actionable policy paper based on the framework.

"The aforementioned Base Paper will form the basis for the Actionable Policy Paper," the Ministry added.

The Ministry has invited comments and suggestions on the paper till June 15, as part of the consultation process for finalising the framework.

(ANI)

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GeM marks Incorporation Day, underscores transparent public procurement

Asianet News Central — Sat, 16 May 2026 16:00:33 +0530

The Government e Marketplace (GeM) celebrated its Incorporation Day 2026 on 16 May, highlighting its expanding role in making public procurement more transparent, efficient and inclusive for domestic enterprises across India.

Government e Marketplace (GeM) is observing its Incorporation Day 2026, marking its continued role in supporting public procurement in India through transparency, efficiency and technology-driven governance.

GeM's Background and Growth

The Government e Marketplace Special Purpose Vehicle (GeM SPV), a Section 8 non-profit company under the Ministry of Commerce, was incorporated on 17 May 2017 under the Companies Act, 2013 to develop, manage and maintain the GeM platform.

Over the years, GeM has emerged as a major digital public procurement platform, promoting ease of doing business and wider market access for sellers across the country.

Fostering 'Aatmanirbhar Bharat'

"Aligned with the vision of Aatmanirbhar Bharat, Vocal for Local and Viksit Bharat 2047, GeM continues to support domestic enterprises by connecting local capabilities with government procurement opportunities," the press release said.

The platform has seen participation from Class-1 local suppliers across sectors such as pharmaceuticals, transportation, construction equipment, furniture, textiles and medical consumables.

Significant Impact and Inclusivity

"Today, the platform hosts over 1.36 lakh government buyers and nearly 25 lakh sellers and service providers, with nearly 72% of active sellers comprising Micro and Small Enterprises (MSEs). During FY 2025-26, more than 11 lakh MSEs on GeM received over 51 lakh orders worth ₹2.36 lakh crore. Women-led MSEs secured procurement orders worth over ₹28,000 crore, while SC/ST entrepreneurs received orders exceeding ₹6,000 crore." the press release said.

Startups on the platform secured orders worth more than ₹19,000 crore, reflecting GeM's role in supporting entrepreneurship and widening access to government procurement.

Chief Executive Officer, GeM, Shri Mihir Kumar said, "GeM was created with the vision of building a transparent, efficient and inclusive digital procurement platform for Government and its agencies. Today, GeM continues to support Aatmanirbhar Bharat and Vocal for Local by connecting domestic enterprises with procurement opportunities."

Incorporation Day Initiatives

As part of the Incorporation Day celebrations, GeM is organising a series of stakeholder engagement and knowledge-sharing initiatives.

The celebrations commenced with the GeM Vendor Assessment Workshop on 15 May 2026 to enhance clarity on the Vendor Assessment process and documentation requirements for prospective OEMs.

Further, GeM will host "GeM Manthan" on 21 May 2026 under the theme "Enriching the GeM Marketplace" to encourage discussions on strengthening the GeM ecosystem.

GeM will also organise a brainstorming session with representatives from the Defence Services on 22 May 2026 to deliberate on process improvements and technological interventions aimed at strengthening alignment with Defence procurement and operational requirements.

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

IBJA Proposes Monetising 1,000 Tons of Temple Gold to Curb Imports

Asianet News Central — Sat, 16 May 2026 16:00:28 +0530

With gold imports straining India's foreign exchange reserves, the India Bullion and Jewellers Association (IBJA) is backing the government's move to curb demand and has proposed a monetisation scheme for nearly 1,000 tons of idle temple gold. If implemented, the industry body said the plan could ease pressure on imports while protecting jobs in the small jeweller and artisan segment, even as it urges members to restrict bullion sales above 5 grams.

IBJA Backs Government's Stance

Following Prime Minister Modi's appeal to citizens to reduce gold purchases, IBJA's Gujarat State President Nainesh Pachchigar said the industry has "decided to stand in support of the government" and is holding meetings nationwide to balance national interest with business continuity.

The government responded swiftly by raising excise duty on gold from 6% to 15%, a step Pachchigar said was taken to help businesses survive while reducing forex outflows.

Proposal to Monetise Temple Gold

"Gold is the second-largest contributor to foreign exchange outflow from the country," Pachchigar noted, adding that India imports around *800 tons of gold annually*. To ease this burden, IBJA has proposed utilising gold held by trusts. "Many trusts currently hold large quantities of idle gold -- nearly 1,000 tons in total. If even a portion of that gold can be utilised, it would help significantly," he said.

The association clarified it is not seeking a permanent transfer of ownership to the government, but rather a structured monetisation mechanism that keeps the metal in circulation within the formal economy.

Appeal to Jewellers to Curb Bullion Sales

Pachchigar also issued a direct appeal to jewellers to halt bullion trading. "We appeal to all jewellers not to engage in bullion trading and not to sell bullion directly to customers... we request jewellers not to sell bullion above five grams."

He said the advisory was issued immediately after the duty hike to align with the government's objective of curbing speculative demand.

Protecting Jobs and Supporting Small Businesses

The association stressed that jewellery sales for ceremonies and essential purposes should continue, but non-essential bullion sales must be curtailed. "We request that jewellery sales continue only to the extent genuinely required by customers," Pachchigar said, while also highlighting the impact on employment. "Another important concern is employment, especially for small labourers and workers... whose livelihoods depend on the jewellery industry."

He added that if the monetisation scheme and other proposals are adopted, "employment opportunities will also be protected." The move comes as small jewellers face mounting pressure from rising input costs and reduced demand, with IBJA pledging to bring gold stored in community funds to the market to prevent smaller businesses from shutting down.

Pachchigar reiterated that the industry is committed to supporting the government at a critical time. "At this moment, we must stand with the government... we want to sit together with the government and find a practical solution."

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Financial systems must stay connected to real economy: PK Mishra

Asianet News Central — Sat, 16 May 2026 15:30:23 +0530

Financial systems must remain connected to the real economy and the lives of ordinary citizens, Principal Secretary to Prime Minister Narendra Modi, PK Mishra, cautioned on Saturday while highlighting the risks posed by excessive speculation and instability in financial markets. Addressing the 20th convocation of the National Institute of Bank Management (NIBM) in Pune, Mishra said, "Financial systems cannot become disconnected from the real economy and lives of ordinary citizens. Excessive speculation, irresponsible lending, unsustainable leverage and instability in financial markets can create disruptions."

India's Digital Public Infrastructure Transformation

At the same time, he underlined how India's digital public infrastructure has transformed financial inclusion by expanding access to banking, digital payments and formal credit across the country. "In India, this convergence of finance and technology has enabled the creation of one of the world's most ambitious and inclusive digital public infrastructures," Mishra said.

JAM Trinity's Impact

He noted that the JAM trinity -- Jan Dhan accounts, Aadhaar and mobile connectivity -- has fundamentally reshaped the reach of the banking system. "The Pradhan Mantri Jan Dhan Yojana brought crores of people, unbanked citizens, into the formal banking system. Aadhaar created a verifiable digital identity architecture at an unprecedented scale. Mobile connectivity provided the final layer of access," he said.

UPI's Rapid Growth

Mishra highlighted the rapid growth of India's digital payments ecosystem, particularly the Unified Payments Interface (UPI), which he described as one of the largest real-time digital payment systems globally. "In less than a decade, India has built the world's largest real-time digital payment ecosystem. From just 2 crore transactions in 2016-17, UPI now processes over 25,000 crore transactions annually," he said.

Democratisation of Financial Access

According to Mishra, the most significant achievement of the digital payment revolution has been the "democratisation of access", enabling both rural and urban citizens to participate in the formal financial economy through the same interoperable payment infrastructure. "A small tea seller in a village or a professional in a metropolitan city can today transact through the same interoperable digital payment infrastructure," he said.

Building Credit Histories Digitally

He further said that digital transaction records are helping create formal credit histories for people who previously lacked collateral or banking relationships. "Every payment made, every purchase recorded, every transfer completed, leaves behind a data trail. And that data trail over time can become the basis for a credit history, for those who have no formal credit record, no collateral to offer, and no prior relationship with the bank," Mishra said.

Beyond Inclusion: Creating Economic Opportunities

The Principal Secretary stressed that financial inclusion should move beyond merely opening bank accounts and must generate meaningful economic opportunities. "True inclusion must ultimately create productive economic opportunities," he said.

Success of Mudra Loan Scheme

Referring to the government's Mudra loan scheme, Mishra said more than 57 crore loans worth around Rs 40 lakh crore have been sanctioned to micro, small and medium enterprises, benefiting a large number of women and people from marginalised communities. "Behind every Mudra loan lies a human story, a tailoring business expanded, a small workshop modernised, a transport vehicle purchased, a family enterprise stabilised, and a first business opportunity created," he said. (ANI)

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Smart tech to bridge facilities management cost gap in Indian offices

Asianet News Central — Sat, 16 May 2026 14:30:29 +0530

As Indian offices evolve into strategic hubs for sustainability and employee well-being, Knight Frank India expects smart building technologies and ESG-led workplace practices to drive greater adoption of integrated facilities management solutions.

While large campuses already enjoy significant cost advantages through automation and centralised systems, the gap between small and large occupiers may narrow as technology reduces manpower dependence and improves efficiency across all formats, Knight Frank said in a press release on Saturday.

High Costs for Small Occupiers in Major Cities

Mumbai, Bengaluru and Gurugram remain India's most expensive office markets for facilities management, with small occupiers bearing the highest per sq ft costs due to limited scale and higher manpower intensity.

Knight Frank India's latest FM cost assessment across eight major cities shows that smaller offices, typically startup hubs, boutique corporate spaces and flex centres, face disproportionately higher operational expenses compared to larger campuses. In the 10,000-30,000 sq ft category, offices in Mumbai, Bengaluru and Gurugram recorded FM costs of INR 25.52 per sq ft for 12-hour operations, rising to INR 27.52 per sq ft for 24x7 operations. The cost burden is even steeper in the 30,000-50,000 sq ft segment, where expenses reach INR 27.65 per sq ft for standard hours and INR 29.65 per sq ft for round-the-clock operations. "Small office occupiers continue to face the highest facilities management costs across all major office markets due to limited scale efficiencies and higher manpower intensity per sq ft," the report states.

Economies of Scale for Large Campuses

By contrast, large office campuses of 300,000-500,000 sq ft benefit the most from economies of scale, with FM costs dropping to INR 13.65 per sq ft for 12-hour operations and INR 15.65 per sq ft for 24x7 operations in the same three cities. The savings are driven by integrated infrastructure, centralised command systems and optimised workforce deployment. "Large office spaces between 100,000-500,000 sq ft benefit most significantly from economies of scale, integrated building infrastructure and centralised command systems, resulting in the lowest per sq ft facilities management costs across all office categories," Knight Frank notes.

Cost Breakdown by Office Size and City

Mid-sized offices of 50,000-100,000 sq ft sit in the middle, with FM costs at INR 24.80 per sq ft for 12-hour operations in Mumbai, Bengaluru and Gurugram, and INR 26.80 per sq ft for 24x7 operations. The report highlights that operational cost differentials narrow for larger campuses as automation and centralised systems reduce the premium associated with 24x7 functioning.

Most Cost-Efficient Markets

Pune and Kolkata emerged as the most cost-efficient markets across all categories, with small office FM costs ranging between INR 21.13-24.55 per sq ft and large office costs between INR 11.30-15.53 per sq ft.

Security Cost Analysis

Security costs remain elevated in gateway cities, averaging INR 3.40-3.65 per sq ft for small offices due to higher guard deployment and compliance requirements, while large campuses keep costs stable at INR 3.00-3.25 per sq ft through access automation and integrated surveillance.

The Strategic Evolution of Facilities Management

Pawan Koyal, Executive Director and Head of Facility and Asset Management at Knight Frank India, said, "Facilities management has evolved into a strategic business function as occupiers increasingly prioritise operational continuity, workplace experience, sustainability and employee wellbeing."

He added that while gateway markets command a premium due to "higher workforce costs and demand for sophisticated workplace management solutions," scale efficiencies are reshaping the cost curve for larger occupiers.

The report concludes that as multinational occupiers, GCCs and IT/ITeS firms expand large campuses, the push for smart and sustainable workplaces will accelerate demand for integrated FM services nationwide. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

Rupee depreciation may erase gains from fuel price hike: SBI Report

Asianet News Central — Sat, 16 May 2026 14:01:02 +0530

The Indian Rupee has reached a critical level where any further depreciation could wipe out the gains from the recent Rs 3 per litre increase in petrol and diesel prices, according to an SBI Research Ecowrap report.

The report warned that "even an additional depreciation of Rs 2 in the Rupee raises the effective crude oil price, pushing the landed import cost, which fully offsets the gains from the current fuel price hike."

OMCs Face Mounting Losses

The SBI Research report said the recent fuel price hike was aimed at reducing losses faced by Oil Marketing Companies (OMCs) due to elevated crude oil prices and unchanged retail fuel prices.

"OMCs' under recoveries on sales of petrol and diesel are soaring because of unchanged retail prices," the report said. It added that OMCs are "incurring losses to the tune of Rs 1000 crore per day, which amounts to around Rs 3.6 lakh crore a year."

According to the report, the Rs 3 per litre increase in fuel prices is expected to provide relief of around Rs 52,700 crore to OMCs, covering only around 15 per cent of their estimated FY27 losses.

Rupee Depreciation and Broader Risks

Highlighting the pressure from currency weakness, the report said, "the Rupee has already approached a critical depreciation threshold, beyond which further currency weakness could substantially erode the intended benefits of domestic fuel price revisions."

The report estimated that, assuming an average FY27 exchange rate of Rs 94 per US dollar and crude oil prices at USD 106 per barrel, the landed crude oil cost works out to nearly Rs 9,964 per barrel. It said the Rs 3 fuel price increase provides a benefit of around Rs 477 per barrel to OMCs, but a further Rs 2 depreciation in the Rupee significantly raises import costs.

SBI Research also said India needs a broader strategy to manage external sector risks. "There is a need for a comprehensive policy on balance of payments," the report said.

Global Pressures on Crude Oil

The report further noted that global crude oil markets remain under pressure amid disruptions in the Strait of Hormuz due to the ongoing West Asia conflict.

"As per the latest IEA report, crude will continue to remain under pressure owing to the depleting inventories," the report said. The report added that shipments through the Strait of Hormuz have declined sharply in recent months, impacting both crude oil and LNG flows.

Impact on Inflation

On inflation, SBI Research said the fuel price hike may have an immediate impact of around 15-20 basis points on Consumer Price Index (CPI) inflation during May-June 2026 and revised its FY27 inflation forecast to 4.7 per cent. (ANI)

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Resilient telecom networks critical for India's digital growth: Experts

Asianet News Central — Sat, 16 May 2026 12:01:12 +0530

As India's digital economy expands rapidly, industry leaders said resilient and intelligent telecom networks are emerging as critical infrastructure supporting financial systems, governance platforms, enterprises, healthcare, mobility and AI-driven ecosystems.

On the occasion of World Telecommunication and Information Society Day (WTISD) 2026, stakeholders across the telecom, satellite, digital services and network infrastructure ecosystem said the next phase of India's digital growth will depend on secure, scalable and resilient communications networks.

Telecom Networks: The Backbone of India's Digital Economy

S.P. Kochhar, Director General of the Cellular Operators Association of India (COAI), said telecom networks have evolved far beyond enabling communication. "Telecom networks today are no longer just enabling communication; they have evolved into a value-added horizontal supporting every major sector of the economy. From UPI transactions and digital governance to healthcare, logistics, manufacturing and enterprise operations, India's real-time digital economy now runs on resilient telecom infrastructure," Kochhar said.

He further stated that "participants who gain significantly from this ecosystem, such as Large Traffic Generators whose platforms drive massive data consumption and monetization, must also contribute fairly to strengthening the underlying network ecosystem."

Satellite Communications to Enhance Connectivity Resilience

Highlighting the growing role of satellite communications in complementing terrestrial infrastructure and strengthening connectivity resilience during disruptions and in remote geographies, A K Bhatt, Ex-Director General of the Indian Space Association (ISpA), said, "Satellite communications will complement terrestrial infrastructure by ensuring seamless connectivity in remote areas, disaster-hit regions and during network disruptions."

Stressing the need for regulatory reforms, Bhatt said there is a need for "faster regulatory clearances, streamlined licensing frameworks and timely spectrum assignment mechanisms."

Echoing similar views, Gautam Sharma, Managing Director of Viasat India, said, "Satellite communications are emerging as a critical extension to terrestrial infrastructure, enabling reliable connectivity in geographically challenging regions, during natural disasters and in situations where traditional networks may face disruptions."

Pivoting to Intelligent, Secure, and High-Performance Networks

On the network infrastructure side, Vibha Mehra, Country Manager of Nokia India, said, "As networks evolve from simply connecting people to enabling intelligent digital ecosystems, the need for secure, resilient and high-performance infrastructure becomes even more critical."

Industry executives also pointed to the growing role of AI, cloud-native technologies, edge computing and secure digital platforms in enabling resilient digital ecosystems.

Rajesh Chandiramani, CEO of Comviva, said, "The resilience of communications networks is no longer just about connectivity, but about ensuring continuity of critical digital experiences."

Chandiramani added, "Building resilient digital ecosystems will require closer integration of intelligent networks, cloud-native architectures, AI-led platforms and secured infrastructures to ensure uninterrupted service delivery even during the periods of network stress or disruption."

Amol Phadke, Chief Transformation Officer at Tech Mahindra, said, "Communications Service Providers are at a pivotal inflection point, where connectivity is no longer just an enabler but the foundation for unlocking a wider spectrum of possibilities across industries and societies."

He further said the industry is transitioning "from connectivity-led models to platform-driven, ecosystem-centric growth," driven by AI, cloud-native architectures, open APIs and edge technologies.

Meanwhile, Pankaj Malik, CEO and Whole-time Director of Invenia-STL Networks, said, "With telecom, the focus is moving beyond connectivity to the quality and intelligence of networks."

Malik added that the next phase of telecom growth in India will be defined by "deeper fiberization, resilient infrastructure and low-latency networks that can support real-time, data-intensive applications."

Rahul Tandon, Senior Vice President at IDEMIA Secure Transaction, said, "IoT, eSIM and quantum-safe security are rapidly becoming foundational to building resilient, trusted and future-ready digital ecosystems. The networks of tomorrow will only be as strong as the security embedded into them today." (ANI)

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Tata Trusts defers board meeting on Charity Commissioner's direction

Asianet News Central — Sat, 16 May 2026 12:01:01 +0530

Tata Trusts has deferred its Board of Trustees meeting scheduled for Saturday, May 16, after receiving a direction from the Charity Commissioner, Maharashtra State.

Meeting Deferred on 'Ex Parte' Order

The Trusts said the order was issued "ex parte" and without any hearing being granted to the Sir Ratan Tata Trust.

In a statement issued late on Friday, Tata Trusts said, "An email was received late evening today, forwarding a direction issued by the Charity Commissioner, Maharashtra State, Mumbai, to the Board of Trustees of Tata Trusts to defer the meeting of the Board of Trustees scheduled for 16 May, 2026."

According to the Trusts, the direction was issued in connection with a complaint filed by Ms. Katyayani Agrawal, a representation by trustee Venu Srinivasan, and an order dated May 13, 2026, of the Bombay High Court in Writ Petition (L) No. 16647/2026 relating to Sir Ratan Tata Trust.

The Trusts maintained that the direction pertained only to Sir Ratan Tata Trust and reiterated that "the direction was issued ex parte, with no notice being given to the Sir Ratan Tata Trust and no hearing being afforded to it, before the direction was issued."

Complaint Questions Trustee Composition

The statement said the complaint by Katyayani Agrawal pertains to the composition of the Board of Trustees of Sir Ratan Tata Trust and alleges that "three out of six trustees of Sir Ratan Tata Trust, being permanent in nature, are in contravention of Section 30A(2) of the Maharashtra Public Trusts Act, 1950."

Trusts' Legal Interpretation

The Trusts, however, said it is their understanding that the amendment to the law "is prospective in nature and does not affect the appointments of perpetual trustees made before it came into force on 1st September 2025." It added that this interpretation is "substantiated by both opinions and clarifications obtained by the Tata Trusts."

Related Legal Matters

Tata Trusts further noted that the Bombay High Court had on May 13 disposed of the writ petition "as withdrawn." The petition had sought a direction restraining the same Board meeting based on Agrawal's complaint.

The statement also said Sir Ratan Tata Trust "was not aware of any complaint having been filed by Venu Srinivasan, Trustee, until the receipt of directions from the Charity Commissioner today." It added that Srinivasan had earlier acknowledged notices for the Board meetings scheduled on May 8 and subsequently on May 16, 2026.

"The directions received from the Office of Charity Commissioner are being examined by the Sir Ratan Tata Trust," the statement added.

(ANI)

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Economist urges taxing super-rich, warns Rupee may hit ₹100 vs USD

Asianet News Central — Sat, 16 May 2026 12:00:28 +0530

Former UN Advisor and economist Santosh Mehrotra, on Saturday, urged the government to shift its fiscal strategy by aggressively taxing the super-rich and high-net-worth individuals instead of relying on regressive indirect taxes like fuel and gold duties, which he warned are compounding inflation and destroying jobs.

Speaking to ANI against the backdrop of escalating geopolitical tensions in West Asia, the prominent economist painted a stark picture of the macroeconomic pressures facing India, warning that the Indian Rupee could slide to ₹100 against the US dollar within the next quarter.

Taxing Super-Rich an Alternative to Indirect Duties

Mehrotra argued that higher indirect taxes on petrol, diesel and gold are worsening inflation and hurting jobs and advised the government to mobilise resources more effectively by taxing high-net-worth individuals rather than increasing duties that impact the wider population. "It would make a lot of sense to impose surcharges on high-net-worth individuals and on dollar billionaires. You then don't have to raise the price of petrol, raise the price of diesel, apply a duty on gold and stuff like that, which leads to job losses," Mehrotra told ANI.

He added, "You can easily mobilise resources for the government by getting the super wealthy, the high-net-worth individuals to pay more," while cautioning that excessive reliance on indirect taxes disproportionately burdens middle- and lower-income households.

Compounding Economic Pressures

Mehrotra said rising inflation, slowing growth, geopolitical tensions and pressure on the rupee were compounding economic stress. He also warned that crude oil prices could surge sharply if tensions in West Asia continue. "If the war continues, no question, it will go beyond USD 150," he said on the possibility of crude oil prices crossing USD 150 per barrel.

Impact on MSMEs and Labour

Mehrotra further said disruptions in oil, gas, fertiliser and LPG supplies were already affecting MSMEs and labour-intensive sectors such as ceramics, restaurants and gems and jewellery, resulting in job losses and reverse migration of workers to rural areas.

Steep Rupee Depreciation Feared

On the rupee, he cautioned that continued geopolitical tensions and external pressures could trigger sharper depreciation. "What has happened in the last three months is that the rupee has gone from under 90 rupees to nearly 96 to a dollar. Now this is going to have its own inflationary impact," he said, adding that the rupee could "very easily" touch Rs 100 against the US dollar within a quarter. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

Amazon Now Takes on Blinkit, Zepto With Massive 50% Cashback Offer on Orders Above ₹200

Gargi Chaudhry — Sat, 16 May 2026 11:35:52 +0530

Amazon is going all in on its grocery delivery app, Amazon Now, with a new offer: get ₹100 cash back as Amazon Pay points when you order groceries worth just ₹200. The deal is clearly aimed at taking on quick commerce rivals like Blinkit and Zepto. Amazon confronts challenges when it enters the market since it hasn't been able to board India's fast commerce train thus far. Both market share and mindshare have been gained by the other applications. Zepto and Blinkit are verbs. However, the digital behemoth is now taking significant steps to use its advantages.

On April 30, the CEO of Amazon discussed the company's financial performance during the same quarterly conference call. He also emphasised how quickly Amazon was advancing Now in India. “Amazon Now, which offers delivery in 30 minutes or less on thousands of items, started last year in India, where orders are increasing 25 per cent month over month, with Prime members tripling their shopping frequency once they start using it,” Andy had said.

The speed at which the corporation is growing its network of dark stores—locations that enable speedy deliveries—is another indication of the drive. Despite its December 2024 launch, Amazon Now didn't start showing up in users' Amazon apps until the summer of 2026. This is because there appear to be enough dark retailers on Amazon at last.

According to reports, it now has between 750 and 800 dark shops, as opposed to Blinkit's 2200. Amazon is sure that it can provide full-fledged service at least in key cities and locations, even though the number is still over one-third of what the market leader has.

Why Cashback Will Work For Amazon Now?

Cashbacks are more often than not proven to be advantageous to companies when combined with a top-class product and experience. They are also the primary way for late-movers to get customers. In a sense, they tell customers that the business is now participating in the game and encourage them to visit and try out the service. The customers' experience will determine whether or not they stay after receiving the cashback. Once more, the best illustration of this comes from the digital payments industry, where Amazon Pay has amassed a comparatively tiny but devoted user base while Google Pay outperformed early entrants like Paytm and MobiKwik with its aggressive push.

WEF: AI revolutionizing venture capital, making SaaS models obsolete

Asianet News Central — Sat, 16 May 2026 11:00:21 +0530

The World Economic Forum has highlighted that Artificial Intelligence is not just another venture sector but a force rewriting how companies are built, scaled and financed. With AI-native firms reaching $100 million in annual recurring revenue in under a year and five companies alone absorbing 20 per cent of global VC funding in 2025, the WEF report warns that traditional SaaS valuation frameworks and liquidity mechanisms are becoming obsolete. The industry must adapt its capital structures, regulatory frameworks and talent ecosystems to support a new era of capital-efficient, infrastructure-heavy growth.

AI Expands Market Beyond Human-Bound Workflows

The VC model of the last three decades was built around software sold to human users, with the addressable market limited by the number of people performing a task. The SaaS market grew to roughly $300 billion a year. AI changes that by automating cognitive work itself -- from legal review to medical diagnostics -- shifting the market beyond human-bound workflows and expanding the opportunity by an order of magnitude.

New Growth Playbook Emerges

This shift is also rewriting the growth playbook. AI-native companies are scaling faster and leaner than any prior technology generation, but product-market fit is harder to defend. "When AI can replicate core product functionality in weeks, the competitive advantages that traditional SaaS companies built on unique features and customer lock-in begin to erode," the report notes. As a result, annual recurring revenue (ARR) is becoming an unreliable valuation metric, forcing investors to rebuild frameworks for a fundamentally different business model.

Unprecedented Capital Concentration

Capital concentration reflects the scale of the transformation. In 2025, AI captured over 50 per cent of global VC deal value, with nearly 60 per cent of funding going into rounds of $100 million or more. OpenAI, Scale AI, Anthropic, Project Prometheus and xAI raised $84 billion combined, equal to 20 per cent of all global VC. Meanwhile, Big Tech is projected to spend more than $650 billion in capex in 2026, mostly on AI infrastructure, blurring the lines between venture capital, private equity and corporate balance sheets.

AI Transforms Venture Firm Operations

AI is also transforming how venture firms operate. Large language models now scan patents, hiring data and code repositories to source deals, while natural language processing can analyse legal documents in minutes rather than weeks. Post-investment, AI enables real-time portfolio monitoring across dozens of companies at once. But the report stresses that AI's capital demands extend beyond software to semiconductors, data centres and energy systems, requiring industrial-scale financing.

WEF's Five Priorities for Adaptation

To address this, the WEF outlines five priorities: improving secondary-market infrastructure, mobilising institutional capital by adapting prudential frameworks, reducing regulatory friction through cross-border harmonisation, strengthening talent ecosystems with better stock-option taxation, and enabling strategic but time-limited government participation. VC has become essential economic infrastructure, yet its foundations are under pressure as companies stay private longer and distributions fall to historic lows. "AI is intensifying each of these pressures while simultaneously redefining what VC finances and how it operates," the report said. Without updated liquidity mechanisms and policy frameworks, the next generation of transformative companies risks being starved of capital. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

US-Iran war: India's CAD to widen by 0.3% per $10 oil price rise

Asianet News Central — Sat, 16 May 2026 10:30:27 +0530

Economic Impact on India

With no sign of the US-Iran war ending and global oil prices likely to reach record highs within a quarter, Santosh Mehrotra, former Economic Advisor to the United Nations, warned that India's current account deficit could widen by 0.3 per cent of GDP for every USD 10 rise in oil prices. He expected inflation to rise further as government action on fuel and gold comes "too little, too late," while geopolitical risks and supply disruptions keep pressure on the rupee and household budgets.

Mehrotra explained the direct transmission of oil prices to India's economy, "For every USD 10 increase in the international price of oil, it increases our current account deficit by about 0.3 per cent of GDP. And simultaneously, that same USD 10 impact on the consumer price index is about roughly the same." He said the downward revision to GDP and upward revision to CPI have already been made, but these are based on the "current situation" and do not account for a prolonged conflict.

Supply Chain Disruptions and Job Losses

The biggest near-term risk, he said, is the disruption to oil, gas, fertiliser, and helium supplies due to the closure of the Strait of Hormuz. "All this is already having an impact on the lives of ordinary people," he noted, pointing to shortages of industrial LPG that have hit ceramics and restaurants. "There has been a significant decline in the number of jobs in the restaurant industry because LPG has simply not been sufficiently available."

Government Policy and Fiscal Strain

Mehrotra was critical of the government's recent diesel price hike, arguing it will worsen inflation across the board. "Diesel is an input into transportation costs... that will simply get absorbed by the truckers, but it will finally get passed on to the consumer." He said that the government had a "windfall gain of roughly 25 to 30 lakh crores" over the last decade when oil prices averaged USD 50-60 per barrel, but fiscal strain persists due to "poor economic policies."

Rupee Depreciation and Inflationary Pressure

He also highlighted the rupee's depreciation, from "under 90 rupees to about 95 plus, nearly 96 to a dollar" in the last three months, as another inflationary trigger. "When the rupee falls against the dollar, inevitably you'll have a situation where the RBI steps in... now the RBI has stopped doing that."

Geopolitical Outlook and Future Oil Prices

Mehrotra believes oil prices could easily touch USD 150 if the war continues, with spot prices for India already near USD 140. He added that Iran is "clearly winning the war" and unlikely to concede on sanctions or uranium enrichment, meaning "the rest of the world will continue to pay the price for the behaviour of Israel on the one hand and the United States on the other."

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

India's WPI inflation hits multi-year high of 8.3% amid global risks

Asianet News Central — Sat, 16 May 2026 09:30:34 +0530

With the US-Iran conflict keeping global crude oil prices elevated and the Strait of Hormuz disruption pushing up metal costs, the economic research wing of Bank of Baroda sees further upside pressure on headline WPI in the coming months. If a peace deal is not reached soon, prolonged tensions could keep fuel inflation high, while a depreciating rupee may add to import costs. Food inflation, which is still providing a cushion, may also inch up depending on the progress of the monsoon.

India's Wholesale Price Index (WPI) inflation accelerated sharply to 8.3 per cent in April 2026, its highest level since October 2022, compared with just 0.9 per cent in April 2025 and 3.9 per cent in March 2026. The surge was driven primarily by fuel and manufactured products, even as food inflation remained relatively muted.

Key Inflation Drivers

Fuel and Power

Fuel and power inflation jumped to a 42-month high of 24.7 per cent in April 2026, up from a contraction of 3.8 per cent a year ago and 1.1 per cent in March 2026. The mineral oil index led the rise, surging 39.5 per cent YoY against a decline of 5.6 per cent last year. Within mineral oils, aviation turbine fuel saw a more than 100 per cent YoY increase, followed by sharp gains in naphtha, furnace oil, petrol, kerosene, and diesel. Coal inflation also edged up to 1.4 per cent from 0.1 per cent. The spike reflects a 54.2 per cent YoY rise in international crude oil prices in April 2026, worsened by rupee depreciation and escalating geopolitical tensions in the Gulf.

Manufactured Products

Manufactured products inflation climbed to 4.6 per cent, the highest since September 2022, compared with 2.6 per cent in April 2025 and 3.4 per cent in March 2026. Of the 22 sub-indices, 13 recorded faster growth, led by basic metals, machinery and equipment, textiles, chemicals, pharmaceuticals, and other manufacturing. Aluminium prices rose 19.2 per cent YoY versus 3.9 per cent last year, while copper held steady at 15.3 per cent. Zinc inflation eased marginally to 6.3 per cent, and lead moderated to 1.1 per cent. Internationally, metal prices have risen even more sharply, with aluminium up 51.8 per cent YoY and copper up 41.1 per cent. As a result, core WPI inflation reached 5 per cent in April 2026, a 43-month high, up from 1.2 per cent a year ago and 3.7 per cent in March 2026.

Food Prices

In contrast, food inflation provided some relief, easing to 2.3 per cent in April 2026 from 3.3 per cent in April 2025. This was due to weak foodgrain inflation at -1 per cent YoY, led by a decline in cereals (0.3 per cent vs 3.9 per cent) and continued deflation in pulses (-4 per cent vs -5.6 per cent). Wheat inflation slowed sharply to 0.4 per cent from 7.4 per cent. However, vegetables, milk, and eggs/meat/fish registered higher inflation. Vegetable inflation rose to 0.5 per cent from -17.2 per cent last year on a base effect, with tomatoes, ginger, cauliflower, and cabbage driving the uptick. Milk inflation increased to 2.6 per cent from 1.1 per cent, while eggs, meat and fish inflation surged to 6.7 per cent from -0.3 per cent.

The research report notes that while domestic foodgrain inflation remains weak, international prices tell a different story, with wheat up 12.6 per cent YoY in April 2026 and the pace of rice price decline slowing to -3.2 per cent from -31 per cent. This divergence could feed into domestic food prices in the months ahead.

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

Gold, Silver Rate Today (May 16 2026): Gold & Silver Prices Swing Wild After Import Duty Hike, Check Latest Rates In Your City

Deevika NM — Sat, 16 May 2026 08:51:44 +0530

Gold, Silver Prices Stay Volatile After Import Duty Shock

Gold and silver prices witnessed sharp swings in domestic and international markets on May 16 as traders reacted to India’s recent hike in import duties on precious metals. The volatility comes days after the government increased import tariffs on gold and silver from 6% to 15% in an effort to curb imports and support the rupee.

The sudden tariff revision triggered massive movement in the bullion market, pushing MCX gold and silver futures to record highs earlier this week before profit-booking and weak global sentiment dragged prices lower. Analysts say the market remains highly sensitive to geopolitical tensions, inflation concerns and fluctuations in the US dollar.

MCX Gold, Silver Witness Sharp Corrections

After rallying strongly earlier this week, precious metals faced intense selling pressure on Friday. MCX gold futures slipped nearly 2%, while silver prices saw a steeper correction of more than 7% during intraday trade.

According to market data, MCX gold touched an intraday low of ₹1,58,150 per 10 grams, while silver dropped to around ₹2,68,623 per kilogram. Despite the correction, bullion prices continue to remain significantly higher compared to last month’s levels.

Earlier in the week, MCX gold June futures had surged over 6% after the government doubled import duties on gold, silver and platinum. Silver futures had also jumped sharply past the ₹2.95 lakh mark per kilogram.

Why Gold, Silver Prices Are Fluctuating

Experts believe multiple factors are driving the current volatility in bullion prices.

Key Reasons Behind Market Swings

Factor Impact on Bullion Market
Import duty hike to 15% Increased domestic prices
Weak rupee Boosted landed cost of imports
Global inflation fears Raised safe-haven demand
US Treasury yield rise Pressured gold internationally
Profit booking Triggered sharp corrections

Reuters reported that Indian dealers are now offering record discounts on gold due to reduced demand after prices surged following the tariff hike.

Today 24 Carat Gold Rate Per Gram in India (INR)

Weight	Today Price	Yesterday Price
1 Gram	₹16,009	₹16,233
8 Grams	₹1,28,072	₹1,29,864
10 Grams	₹1,60,090	₹1,62,330
100 Grams	₹16,00,900	₹16,23,300

Today 22 Carat Gold Rate Per Gram in India (INR)

Weight	Today Price	Yesterday Price
1 Gram	₹14,675	₹14,880
8 Grams	₹1,17,400	₹1,19,040
10 Grams	₹1,46,750	₹1,48,800
100 Grams	₹14,67,500	₹14,88,000

Today 18 Carat Gold Rate Per Gram in India (INR)

Weight	Today Price	Yesterday Price
1 Gram	₹12,007	₹12,175
8 Grams	₹96,056	₹97,400
10 Grams	₹1,20,070	₹1,21,750
100 Grams	₹12,00,700	₹12,17,500

Silver Rate Today in India

Weight Silver Price

1 Kg Silver Around ₹2.70 lakh
MCX Silver Futures Highly Volatile

Gold Prices in Major Indian Cities

City	22K Gold (per gm)	24K Gold (per gm)
Mumbai	₹14,675	₹16,009
Delhi	₹14,690	₹16,024
Kolkata	₹14,675	₹16,009
Chennai	₹14,950	₹16,309
Bengaluru	₹14,675	₹16,009
Hyderabad	₹14,675	₹16,009

Why Gold Prices Are Fluctuating

The bullion market has remained unstable after the government increased import duties on gold and silver to 15 percent. Traders are also tracking global inflation trends, US Treasury yields, rupee movement and international demand for safe-haven assets. Analysts believe profit-booking after recent record highs has also triggered sharp corrections in MCX gold and silver futures.

India's CAD May Widen to 2% of GDP on High Oil Prices: ICICI Bank

Asianet News Central — Sat, 16 May 2026 08:30:28 +0530

With the West Asia conflict persisting and global oil prices likely to average around USD 100/bbl, India's current account deficit could rise meaningfully this year, ICICI Bank Global Markets warns. While resilient services exports should offer some cushion, the brokerage expects the current account deficit (CAD) to settle between 1.5-2 per cent of GDP, provided non-essential imports are contained and capital inflows improve once global risk sentiment stabilizes.

Strong Start for Goods Exports in FY27

India's goods exports had a strong start to FY27, rising 14 per cent YoY to USD 43.6 billion in April, driven by a sharp 35 per cent YoY jump in oil exports and a 9 per cent YoY rebound in non-oil exports. Oil exports touched USD 9.6 billion, the strongest growth in about two years, aided by elevated global prices and a sequential surge of 85 per cent from March. Non-oil exports stood at USD 34 billion, flat on a month-on-month basis but up 9 per cent annually.

Sectorally, electronics exports hit an all-time high of USD 5.2 billion, growing 40 per cent YoY, while engineering goods (8.8 per cent YoY) and chemicals (7.2 per cent YoY) also posted gains. Marine products, ores and minerals, and plastic and rubber articles recorded positive growth. However, exports of ceramics and glassware fell 41 per cent YoY, with gems and jewellery, textiles, and agri products also contracting.

Regional Export Trends

Regionally, exports to the US improved mildly by 1.1 per cent YoY to USD 8.5 billion, reflecting gradual tariff normalisation. Exports to non-US countries grew sharply by 17 per cent YoY to USD 35 billion, led by China, Hong Kong, Singapore, the UK, and Germany. The outlier was West Asia, where exports contracted 28 per cent YoY due to the ongoing blockage of the Strait of Hormuz.

Imports Surge, Widening Trade Deficit

On the import side, goods imports rose 10 per cent YoY to USD 71.9 billion, led by an 82 per cent YoY surge in gold imports to USD 5.6 billion and a 15 per cent YoY rise in non-oil non-gold imports to USD 47.7 billion. Oil imports, however, fell 10 per cent YoY on a high base but jumped 53 per cent MoM to USD 18.6 billion, the highest in 12 months, as global crude prices climbed to ~USD 105/bbl. Electronics and machinery imports also hit record highs, contributing nearly 27 per cent of the goods import basket.

The widening gap pushed India's goods trade deficit to USD 28.4 billion in April, up from USD 20.7 billion in March. Both the oil deficit (USD 9.0 billion) and non-oil non-gold deficit (USD 13.7 billion) expanded sequentially. Including services, the overall goods and services deficit widened to USD 7.8 billion from a mild surplus of USD 0.3 billion in March.

Services Trade and Capital Flow Concerns

Services trade provided some relief, with net services exports growing 29 per cent YoY to USD 20.6 billion in April, above the FY26 average of USD 18.1 billion. Gross services exports rose 13 per cent YoY to USD 37.2 billion.

Capital flows remain a concern. "FPI outflows are quite high at USD 10 billion in FY27 so far," ICICI Securities notes, adding that inflows should return once tech and commodity-driven global themes fade. In the interim, easing compliance and regulations could help attract inflows.

With both oil and gold imports remaining elevated and global uncertainty persisting, the report underscores the need for policy measures to restrict non-essential imports to protect the external balance.

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

UAE to store 30 million barrels of crude oil in India's reserves

Asianet News Central — Fri, 15 May 2026 23:30:22 +0530

Foreign Secretary Vikram Misri on Friday shared key details on agreements between India and the UAE, stating that the UAE will store up to 30 million barrels of crude oil in India's Strategic Petroleum Reserve following Prime Minister Narendra Modi's visit. He said the move is aimed at strengthening energy cooperation and enhancing India's energy security.

Energy Cooperation and Strategic Reserves

"We will be issuing a more detailed press release later today, but let me give you a snapshot of everything that happened during the course of this brief two-and-a-half-hour visit. On the bilateral front, the two sides have concluded several important initiatives to further deepen our comprehensive strategic partnership. Energy has always been a very important part of this relationship. In the energy cooperation field, we've seen several agreements being initialled between Indian energy sector companies and UAE entities, primarily the Abu Dhabi National Oil Company. These include agreements on enhancing UAE participation in Indian strategic petroleum reserves to a level of 30 million barrels, the establishment of strategic gas reserves in India, and long-term LPG offtake supply agreements," he said.

New Investment Commitments

Misri said that new investment commitments were signed, totalling USD 5 billion. "In the field of investment, the UAE has traditionally been a significant investor in India, cumulatively the seventh largest investor over the course of the last 25 years. Today, new investment commitments were signed totalling USD 5 billion. These include investments by Emirates NBD Bank in RBL Bank in India, by the Abu Dhabi Investment Authority in the National Infrastructure Investment Fund, and by the International Holding Company in Saman Capital of India," he said.

Strengthening Defense Partnership

Misri further said that the two sides built on the initial steps that were taken during the visit of the UAE President to India. "Defense cooperation has also been a major area of focus in recent years. Today, the two sides built on the initial steps that were taken during the visit of His Highness President Sheikh Mohamed bin Zayed to Delhi in January this year and concluded a framework on a strategic defense partnership. Under this, the two sides will strengthen their collaboration in defense manufacturing, technology, and equipment. Reflecting the Government of India's initiatives in the shipbuilding industry, agreements were signed today between Cochin Shipyard Limited and Drydocks World of Dubai. These include agreements on setting up a ship repair cluster at Vadinar in India and a center of excellence for skill development in the maritime field," he said.

Cooperation in Advanced Technology and Trade

Misri added that both countries took steps to cooperate in advanced technology. "Cooperation in advanced technology took a giant step forward today with the signing of a term sheet for the establishment of an 8-exaflop supercomputing facility in India. This will add to India's AI mission and the associated infrastructure. Furthermore, as both the UAE and India share an interest in building supply chain resilience, this visit saw the operationalisation of the virtual trade corridor called METRI between Indian and UAE ports. This will lead to much greater efficiencies in maritime commerce between the two nations," he said.

Regional Security Discussed

Prime Minister Modi conveyed India's strongest condemnation of the attacks that have taken place in the UAE. "Finally, the situation in the region came in for detailed discussion. The Prime Minister once again conveyed India's strongest condemnation of the attacks that have taken place in the UAE. He conveyed India's solidarity with the leadership and the people of the United Arab Emirates and reiterated the need for unimpeded transit passage through the Strait of Hormuz and the cessation of attacks on shipping and on mariners," he said.

PM Modi also invited President Mohamed bin Zayed of the UAE to India. (ANI)

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ITC Hotels to acquire Kerala's Zuri Kumarakom Resort for Rs 205 crore

Asianet News Central — Fri, 15 May 2026 22:30:20 +0530

ITC Hotels is set to acquire luxury resort property 'The Zuri Kumarakom Resort & Spa' in Kerala for an enterprise value of Rs 205 crore, marking the company's first owned resort in the state as ITC Hotels expands its footprint in high-growth leisure destinations.

According to a media statement issued by ITC Hotels on Friday, the company has signed definitive agreements to acquire a 100 per cent stake in Zuri Hotels & Resorts Private Limited (ZHRPL), which owns the resort, on a debt-free and cash-free basis, subject to customary adjustments.

"The acquisition is expected to be consummated over the next few days and will enable ITC Hotels to expand its luxury portfolio in a strategic, high-growth leisure destination - establishing the company's first owned resort in Kerala," the company said in the statement.

About the Resort

The resort is located along the backwaters of Kumarakom on the banks of Vembanad Lake and is spread across 18 acres. The property has 72 rooms, including 38 villas and cottages, along with dining venues, event spaces and nearly 20,000 square feet of spa and wellness facilities.

Strategic Rationale for Acquisition

Speaking on the acquisition, ITC Hotels Managing Director Anil Chadha said the move is part of the company's strategy to strengthen its presence in India's premium leisure hospitality market.

"The acquisition of this exclusive property in Kumarakom marks a strategic cornerstone in our journey to expand ITC Hotels' footprint into one of India's most sought-after leisure destinations," Chadha said.

He added, "By integrating this iconic resort into our portfolio, we aim to elevate the guest experience through our globally recognised culinary excellence and world-class Ayurvedic wellness offerings."

Future Plans and Rebranding

ITC Hotels said the property will undergo extensive renovation and will later be rebranded under the 'ITC Hotels' brand.

The company said the redesigned resort will draw inspiration from Kerala's traditional architecture and craftsmanship in line with its "Rooted in the Soil" philosophy.

Projected Brand Value and Growth

The company also expects the property to benefit from its hospitality network and loyalty platform.

"By integrating ITC Hotels' institutional strengths - including signature culinary experiences, best-in-class guest services, Club ITC loyalty program and robust distribution network, the Resort will unlock brand-led value uplift and establish itself as a premier luxury destination for leisure and high-profile MICE," the statement said.

ITC Hotels further said the resort's stabilised revenue is expected to rise to nearly three times its current levels and would be margin accretive to the company's overall portfolio.

(ANI)

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India's first SME-led semiconductor chip plant opens in Rajasthan

Asianet News Central — Fri, 15 May 2026 21:00:49 +0530

India's first SME-led semiconductor chip manufacturing facility by Sahasra Semiconductors Pvt Ltd was inaugurated in Rajasthan's Bhiwadi on Friday, marking a major step in the country's push to strengthen domestic semiconductor and electronics manufacturing.

The Semiconductor ATMP/OSAT facility, located inside the Electronics Manufacturing Cluster (EMC) developed by ELCINA at Salarpur, Khushkhera, was virtually inaugurated by Union Electronics and IT Minister Ashwini Vaishnaw in the presence of Rajasthan Chief Minister Bhajan Lal Sharma and Union Minister Bhupender Yadav.

A Historic Day for Rajasthan

Addressing the gathering, Vaishnaw described the development as "a historic day for the state of Rajasthan as it enters the semiconductor industry - a strategically critical industry globally from a geopolitical perspective."

The minister highlighted the rapid growth of India's electronics sector over the past 12 years, saying production has "grown 6 times to nearly Rs 13 lakh crores" while exports have risen to "around Rs 4.24 lakh crores." He also said that "mobile phones have now become India's top export commodity."

Facility Details and Investment

According to the release, the semiconductor facility has been developed under the Ministry of Electronics and Information Technology's Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) with an investment of over Rs 150 crore.

Spread over 57,000 square feet, the facility is equipped with Class 10K and 100K cleanrooms and will package memory chips used in products such as Micro SD cards and flash storage devices, along with LED driver ICs, eSIMs and RFID products.

Production Capacity and Exports

The release said the unit currently has an annual packaging capacity of 60 million semiconductor units and plans to scale this up to "nearly 400-600 million units annually over the next 2-3 years."

It added that more than 60 per cent of the facility's production is already being exported to markets including the United States, Germany, France, Eastern Europe, China and Nepal.

Bhiwadi's Electronics Manufacturing Cluster

The Electronics Manufacturing Cluster at Bhiwadi has been developed over 50.3 acres at a project cost of Rs 46.09 crore, with direct government support of Rs 20.24 crore under the EMC scheme.

According to the release, the cluster has already attracted planned investments of over Rs 1,200 crore from 20 companies operating across semiconductor packaging, electronic components, EV parts, RFID technologies and industrial electronics. Eleven companies are already operational with investments exceeding Rs 900 crore, generating employment for more than 2,700 people.

Rajasthan's Semiconductor Push

Rajasthan Chief Minister Bhajan Lal Sharma said the state government had introduced a Rajasthan Semiconductor Policy in March 2026 and was working to develop the region near Delhi-NCR into a manufacturing hub.

The release said the event was conducted virtually in line with Prime Minister Narendra Modi's appeal to reduce fuel usage "in light of the current global situation."

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

BRICS delegation visits GIFT City ahead of India's 2026 Chairship

Asianet News Central — Fri, 15 May 2026 21:00:27 +0530

A high-level BRICS delegation visited GIFT City on Friday to gain first-hand insights into India's International Financial Services Centre (IFSC) ecosystem and the opportunities it offers in cross-border finance, fintech, trade, and global business services.

The visit comes as India holds the BRICS Chairship for 2026 under the theme "Building for Resilience, Innovation, Cooperation and Sustainability," and prepares to host the 18th BRICS Summit and related ministerial engagements during the year.

Delegation Explores GIFT City's Financial Ecosystem

As part of the visit, the delegation was apprised of GIFT City's development as India's maiden IFSC and its emergence as a gateway for international financial services, global capital flows and foreign currency transactions from within India.

Senior officials from GIFT City and International Financial Services Centres Authority (IFSCA) made a detailed presentation covering the city's regulatory ecosystem, globally benchmarked infrastructure, business environment and sectoral opportunities across banking, capital markets, fund management, insurance and reinsurance, aircraft leasing, fintech, and Global Capability Centres (GCCs).

The delegation also visited key facilities within GIFT City to gain first-hand insights into the integrated smart city infrastructure and institutional ecosystem developed to support international financial services operations. The visiting delegates showed keen interest in understanding the business and collaboration opportunities emerging from GIFT City, particularly in areas related to cross-border financial services, fintech innovation, international trade and digital finance.

Showcasing a Global Financial Hub

Commenting on the visit, Mr Sanjay Kaul, Managing Director and Group CEO, GIFT City, said, "GIFT City is steadily emerging as a globally competitive financial and innovation hub, enabling international financial services and cross-border business from India. The visit by the BRICS delegation provided an important opportunity to showcase GIFT City's integrated financial and urban ecosystem, and to exchange perspectives on areas such as cross-border investments, sustainable finance, fintech innovation and international economic cooperation."

According to the press releaseby GIFT City, the city currently hosts over 1,130 entities across sectors including banking, capital markets, fund management, insurance, leasing and fintech, with banking assets crossing USD 106 billion and fund management commitments exceeding USD 32 billion.

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