The Economic Times

The Lok Sabha has passed a bill making Amaravati the sole capital of Andhra Pradesh. This move is set to revive investor confidence and unlock significant infrastructure development. The bill provides legal clarity, ending years of uncertainty. Amaravati is envisioned as a global-standard city and a key growth engine for the state. This will accelerate investments and generate employment.

India has shelved plans for deep-sea mining auctions, citing a lack of technological readiness and anticipated low bidder interest. The initial auction for critical mineral blocks, valued over 1.5 trillion rupees, was annulled due to poor response. Companies find the venture economically unfeasible, with domestic miners unprepared for the substantial investments and specialized technology required.

Indian exporters receive a six-month extension for RoDTEP scheme benefits until September 30. This move aims to counter trade disruptions from the West Asia crisis. The scheme offers refunds on duties and taxes for manufactured goods. This support helps exporters manage rising freight costs and trade risks.

Investors holding assets acquired before April 1, 2017, have received a significant reprieve. The Central Board of Direct Taxes has clarified that gains from these legacy investments will be exempt from General Anti-Avoidance Rules (GAAR). This move aims to provide much-needed clarity and reassurance for foreign investors and private equity funds concerning their existing holdings.

India will offer temporary customs duty relief for goods produced in special economic zones and sold domestically. The reduced duty rates, ranging from 5% to 12.5%, will be effective from April 1, 2026, to March 31, 2027, benefiting businesses that commenced production by March 31, 2025.

Starting April 1, India has abolished the 10 lakh threshold on courier exports, a shift aimed at propelling e-commerce forward and supporting small enterprises. The introduction of a quick return mechanism for unclaimed parcels is also noteworthy, designed to alleviate shipping delays and enhance overall delivery efficiency for cross-border commerce.

New tax rules and budget changes begin April 1. Higher taxes on speculative stock trades will curb risky bets. Lower taxes on overseas travel packages and remittances for medical and education will benefit many. A new Income-tax Act simplifies filings. Changes also affect virtual digital assets and employee stock options.

Corporate insurance premiums are falling sharply this renewal season. Property and commercial lines are witnessing steep declines. Intense competition and increased underwriting capacity are driving these price drops. Experts warn this trend could impact industry profitability. Buyers are benefiting from lower costs across various insurance segments. This market softness is unprecedented, affecting all business lines.

India is preparing a major reform plan. The government is focusing on self-reliance and strengthening domestic supply chains. This initiative aims to counter global disruptions. Actionable steps and quick wins are prioritized. The plan addresses short, medium, and long-term goals. Energy and fertiliser supplies are immediate concerns.

Banks are now favouring borrowers with top credit scores. This shift reflects caution in lending. New customers are also getting fewer loans. Despite this, the overall credit market is improving. Asset quality is better. Gold loans are seeing a surge in volume and value. They now lead retail lending.

Vegetable prices have fallen sharply since January. Potatoes are down 40 percent, onions 50 percent, and tomatoes up to 80 percent. This is due to a supply glut and peak harvest arrivals. Staples like wheat and rice have also eased. Farmers face distress as prices are below cost. Consumers are getting relief from inflationary pressures.

The Reserve Bank of India's net short position in forwards rose to $77 billion in February. This move impacts the central bank's capacity to protect the rupee. The forward book is projected to exceed $100 billion. This situation affects foreign exchange reserves and rupee liquidity. The market now closely watches import cover levels.

Japan's Foreign Ministry is launching a new center to help Japanese companies invest in India. This initiative aims to overcome challenges like complex regulations and tax systems. The center will also foster cooperation in AI, startups, and critical minerals. This move supports a goal of 10 trillion yen in private sector investment by 2035.

The Reserve Bank of India has extended export credit deadlines. Exporters can now get pre- and post-shipment finance for up to 450 days on disbursals until June 30, 2026. The time for realizing export proceeds is also extended to 15 months. These measures aim to help exporters navigate ongoing logistical challenges.

Indian apparel exports saw modest growth, impacted by US tariffs. A weaker rupee helped boost earnings in local currency. Shipments to the UK and UAE provided some relief. ICRA forecasts stronger revenue growth and improved financial health for exporters in the coming year. Geopolitical risks remain a concern for the sector.

Receipts from the services sector, which accounted for two-third of the total, climbed about 9% to $310 billion, data showed. These are known as invisible receipts as these reflect earnings a country generates from IT services, tourism and remittances & transfers rather than international trade in physical goods.

The Finance Act 2026 has been notified, bringing changes to tax rules for the upcoming fiscal year. Parliament approved the Finance Bill 2026, completing the budgetary process. The Union Budget 2026-27 outlines significant expenditure and revenue targets. A new 12 percent surcharge on capital gains from company share buybacks will apply to individuals and corporations starting April 1.

Telangana's finances in 2024-25 saw extensive use of RBI's Special Drawing Facility and Ways and Means Advances. The state government borrowed Rs 27,730 crore via SDF and Rs 64,188 crore through WMA. Overdrafts totaling Rs 37,457 crore were also availed. This reliance on short-term borrowing mechanisms highlights financial management challenges. The CAG report detailed these transactions.

India's diesel exports to Southeast Asia hit a seven-year high in March, driven by traders covering short positions and refiners capitalizing on Asian profit margins. This surge, largely by Reliance Industries, helps alleviate supply tightness, with analysts predicting the trend's continuation despite export taxes. The U.S. stance on Russian and Iranian oil purchases enables India to maintain refinery capacity.

Eutelsat, a key competitor to Elon Musk's Starlink, is in discussions with India's space agency, ISRO, for future satellite launches. This move aims to diversify its launch options beyond SpaceX and European Ariane rockets, following its merger with OneWeb and loss of access to Russian Soyuz. The company is strategically preparing for future growth and market access in India.

Iran War: A persistent Middle East conflict could reduce India's real GDP growth by 1 percentage point and increase retail inflation by 1.5 percentage points from baseline estimates. This impact stems from disruptions to global oil and energy markets, affecting employment-intensive sectors and aggregate demand. The government may need to implement countercyclical policies and augment the Economic Stabilization Fund.

Former R&AW Chief Vikram Sood expressed concern over the West Asia conflict's impact on India, particularly potential oil and fertilizer shortages leading to inflation. He called the attack on Iran and the killing of its Supreme Leader unfortunate, emphasizing India's dependence on the Strait of Hormuz while noting Israel as an ally.

India boosted diesel exports significantly in March. This surge was driven by favorable economics for middle distillates. Geopolitical events in West Asia tightened supply, increasing diesel and jet fuel prices. Refiners adjusted production to capitalize on these higher margins. India also increased domestic LPG production to compensate for lost imports. Overall refined product exports saw a slight decline.

India's insolvency law has significantly boosted the banking sector. The Insolvency and Bankruptcy Code has helped rescue struggling companies and recover bad loans. A new amendment bill passed in the Lok Sabha introduces fresh resolution frameworks. This aims to speed up the rescue of stressed firms and improve loan recovery processes across the country.

New Delhi is set to maintain current import duties on pulses. The government will also extend the duty-free period for tur and urad. This move aims to prevent price increases. Officials anticipate an El Nino affecting monsoon rainfall. Production of tur and urad is expected to decline. This could lead to higher prices and food inflation.

In absolute terms, the fiscal deficit between April 2025 and February 2026 stood at 12.53 lakh crore against 13.47 lakh crore a year ago. The government has pegged the 2025-26 fiscal deficit at 15.58 lakh crore.

Global energy chokepoints highlight India's need for mineral security. A new strategy focuses on deep partnerships in Africa. This involves technology transfer and capacity building. India can become a partner in governance and green industrialization. This approach secures critical minerals for India's clean economy. Engagement in Zambia, Zimbabwe, and Tanzania offers a roadmap.

The Reserve Bank of India should use its substantial foreign exchange reserves to stabilize the Indian Rupee. A report from SBI suggests this action is necessary as the ongoing West Asia crisis impacts global markets. The report highlights that India possesses ample reserves to manage speculative moves.

World Trade Organisation members could not agree to extend a safeguard on intellectual property rules. This means the moratorium on non-violation complaints under the TRIPS Agreement has expired. This lapse creates immediate uncertainty and the risk of new disputes. The issue will now be discussed in Geneva.

This reflects a considerable slowdown in the pace of awarding and construction of national highways in the country which could impact the targets set for 2025-26 when the full year data for FY26 is available. As per the report, the ministry has already utilized 83.39% or Rs 2.27 lakh crore of the total budgetary capital outlay of Rs 2.72 lakh crore for 2025-26 till December 31, 2025.

India's financial obligations to the world decreased by $10.9 billion in the third fiscal quarter. This improvement was driven by Indian residents increasing their overseas assets more than foreigners increased their assets in India. The ratio of India's international assets to liabilities saw a positive shift. Indian residents invested more abroad in direct investments and deposits.

India's inward receipts from international trade in services, incomes, and remittances surged by 56% to $464.189 billion in the first nine months of FY26, significantly bolstering the country's balance of payments. The services sector, contributing two-thirds of total receipts, saw a 9% increase to $310.242 billion, driven by telecommunication, computer, and information services.

Select NGNF public limited companies experienced a rise in net sales growth to 7.8 percent in 2024-25. Manufacturing and services sectors both saw increased sales. Operating expenses also grew, impacting operating profits. However, profit after tax surged significantly due to non-operating income and lower tax expenses.

Interest rates for small savings schemes will remain unchanged for the June quarter. This decision affects popular schemes like PPF and Sukanya Samriddhi accounts. These rates have been stable for nine consecutive quarters. The government uses these collections to finance its fiscal deficit.

The ministry of road transport and highways, on Monday, said the National Highways Authority of India (NHAI) monetised over 310 km of National Highways under InvIT Round-5 for Rs 6366.98 crore while realising Rs 3,087 crore from the toll-operate-transfer (TOT) Bundle-18. With bids received for TOT Bundle-19, which are under technical evaluation, NHAI is well poised to achieve the governments budgeted target of Rs 30,000 crore for current FY 202526, it said.

The World Trade Organization's 14th ministerial conference wrapped up in the wee hours Monday with no results on the key issues of agriculture and much-needed reform of the organisation.

The WTO ministerial in Cameroon ended in deadlock, failing to extend the e-commerce moratorium and highlighting deep divisions between major powers and emerging economies. Disagreements over digital taxation, intellectual property, and rule-making reveal a fractured global economic order, with Brazil and India pushing back against US and China-backed initiatives.

India's economic growth is projected to slow down to 6.5 percent in fiscal year 2026-27. This moderation is attributed to rising energy prices and supply concerns stemming from the West Asia conflict. The current account deficit is expected to widen. Inflationary pressures may increase, impacting consumer sentiment.

India's industrial production saw a 5.2% rise in February, a slight increase from January. Manufacturing output drove this growth. Economists anticipate a slowdown in March due to global conflicts. For the fiscal year 2026, industrial growth has remained steady. Infrastructure and capital goods are key drivers of this expansion.

The Reserve Bank of India and the Finance Ministry are working to boost rural credit. Measures are in place to ensure ample liquidity for the economy. Priority Sector Lending guidelines and Ground Level Agriculture Credit targets are key to expanding Kisan Credit Card coverage. The limit for collateral-free agricultural loans will increase from January 1, 2025.

February 2026 marked a pivotal moment for India's industrial sector, which saw a 5.2 percent increase in the Index of Industrial Production year-on-year. The surge can be largely attributed to dynamic manufacturing activities, while the mining and electricity industries played crucial roles in propelling overall economic momentum. The trend indicates a continued expansion in industrial undertakings.

Rising crude oil prices due to West Asian tensions could significantly push up India's inflation by 55-60 basis points per $10 barrel increase in FY27. This could also widen the current account deficit and pressure the Indian rupee, though strong domestic demand and policy flexibility offer some resilience.

The government is set to review its electronics manufacturing scheme. Beneficiaries must invest in product design and achieve Six Sigma standards. Union Minister Ashwini Vaishnaw warned that non-compliance will lead to halted disbursements and approvals. The industry has 15 days to present plans for design, talent, and local sourcing. This move aims to boost high-quality, self-reliant electronics manufacturing in India.

Delhi's factories have increased, but job growth in its industrial sector remains slow. This indicates a gradual recovery after the Covid-19 pandemic. Employment gains are concentrated in specific segments like rubber, plastics, and repair services. Traditional sectors like textiles show stagnation. A shift towards logistics and supply chain activities is also evident.

Finance Minister Nirmala Sitharaman stated India's economic fundamentals are strong. The Indian rupee is performing well against the US dollar compared to other emerging markets. Despite a recent depreciation linked to the West Asia conflict, the government and RBI are closely monitoring the rupee's value. Inflation has eased significantly, with prices of essential commodities remaining stable or decreasing.

Israel, Iran war: India faces a vulnerable situation with domestic urea production impacted. The government is actively securing imports for April and May, crucial months for agricultural stocking. States are being informed to prevent panic. Authorities are vigilant against hoarding and black marketing. Promotion of alternative fertilizers like ammonium sulphate and triple super phosphate is also underway to manage urea demand.

IPL 2026: JioStar, Mukesh Ambani's entertainment venture, has terminated its IPL and Women's Premier League broadcast deals in Bangladesh due to its local partner's payment defaults. This move means no local broadcaster will air the IPL season, even if Bangladesh lifts its earlier ban. The termination follows a period of strained India-Bangladesh relations.

New Jan Vishwas Bill: The proposed amendments reflect a broader policy push towards reducing criminal liability for business-related offences and promoting ease of doing business through a compliance-based regulatory approach.

President Trump stated that the U.S. and Iran are engaging in direct and indirect talks, with Iran's new leaders described as very reasonable. Pakistan is preparing to host meaningful talks to end the month-long war, while Iran warns against a U.S. ground invasion. Thousands of additional U.S. troops have arrived in the region.

ET looks at how the proposed amendments to the decade-old law, blamed by critics for causing inordinate delay in the rescue or liquidation of bankrupt firms, is going to shape the countrys insolvency ecosystem.