India's Finance Ministry seeks Parliament approval for USD $33.8 Billion extra spending in FY26 (Indian Express)
Ministry of Finance sought Parliament’s approval for an additional ₹2.81 lakh crore (USD $33.8 Billion) in spending for FY26. Of this, ₹1 lakh crore (USD $12 Billion) is earmarked as an inter‑account transfer under the Economic Stabilization Fund, designed to cushion against global volatility. The ministry also requested ₹19,230 crore (USD $2.3 Billion) for fertiliser subsidies, including ₹15,000 crore (USD $1.8 Billion) under the Nutrient Based Subsidy Policy, with ₹9,000 crore (USD $1.08 Billion) specifically for imported Phosphatic and Potassic fertilisers, and ₹4,230 crore (USD $510 Million) for urea. Other allocations include ₹36,130 crore (USD $4.35 Billion) by the Defence Ministry for spectrum charges and health schemes, ₹23,641 crore (USD $2.85 Billion) by the Department of Food and Public Distribution for SC/ST subsidies under the Pradhan Mantri Garib Kalyan Anna Yojana, and ₹1,059 crore (USD $127 Million) by the Commerce Ministry for export insurance. The net additional cash outgo is estimated at ₹2.01 lakh crore (USD $24.2 Billion) after accounting for savings of ₹80,145 crore (USD $9.6 Billion) across ministries. Fertiliser costs have surged globally due to the West Asia conflict involving Israel, the US, and Iran, with Gulf nations supplying three‑fourths of India’s urea imports, making this supplementary demand critical for stabilizing agriculture and trade.
India revives Southern African Customs Union (SACU) trade pact talks to boost exports (The Hindu Businessline)
India revived negotiations with the Southern African Customs Union (SACU) comprising South Africa, Namibia, Lesotho, Eswatini, and Botswana to finalize a Preferential Trade Agreement (PTA). India’s High Commissioner to South Africa, Prabhat Kumar, announced at the India-South Africa Business Conclave in Pretoria that the PTA would reduce trade barriers and expand market access for Indian goods, particularly in textiles, IT, and digital services. Talks originally began in 2003, but stalled for over a decade due to disagreements on tariff concessions, with SACU seeking access for agricultural products and minerals, while India pushed for textiles and clothing. Post-COVID, discussions were revived, with both sides reaffirming the potential to expand trade beyond current levels, supported by 150 Indian companies already operating in South Africa. Kumar highlighted India’s broader trade diversification strategy, citing FTAs with the EU, UK, UAE, and Australia, alongside reforms such as corporate tax liberalisation and production incentives. He also invited African leaders to the upcoming India-Africa Forum Summit in New Delhi, which will set the development agenda for India-Africa economic cooperation.
US President Donald Trump announced USD $300 Billion refinery deal with India's Reliance (Times of India)
US President Donald Trump announced a USD $300 Billion deal with Reliance Industries to build the first new US oil refinery in 50 years at the Port of Brownsville, Texas. The project, backed by Reliance investment, is expected to generate thousands of jobs and deliver billions in regional economic impact. Trump described it as a massive win for American workers and energy security, crediting his “America First” agenda of streamlined permits and lower taxes for attracting the investment. The refinery is projected to be the cleanest in the world, supporting both US markets and global exports. The announcement comes amid global energy disruptions linked to the Israel-Iran conflict, which has affected the Strait of Hormuz, a route for nearly 20% of global oil supply. White House spokesperson Karoline Leavitt assured that while fuel prices have risen temporarily, the refinery and ongoing military operations will stabilize markets and lower gas prices in the long term. For India, this investment is significant because Reliance’s global expansion strengthens its balance sheet, enhances access to advanced refining technology, and positions Indian industry as a strategic partner in US energy security.
India eases FDI rules for China, Nepal, Bhutan and other neighbours (Business Standard)
The Union Cabinet chaired by Prime Minister Narendra Modi eased restrictions under Press Note 3 (2020), allowing automatic route FDI from land‑border countries (including China, Nepal, Bhutan, Bangladesh, Myanmar, Afghanistan, Pakistan) for non‑controlling stakes below 10%. The revised framework introduces a 60‑day timeline for approvals in sectors such as electronic components, capital goods, polysilicon, ingot‑wafer, and solar cells, overseen by a committee of secretaries under the Cabinet Secretary. The definition of beneficial ownership has been aligned with the Prevention of Money Laundering Rules, 2003, setting a threshold at 10%, which clarifies structuring for joint ventures, minority investments, and deep‑tech startups. Previously, approvals for Chinese investments often took over a year, discouraging inflows despite India never formally banning FDI from China. The move follows recommendations by a high‑level panel led by NITI Aayog member Rajiv Gauba, which suggested calibrated easing to attract capital while retaining Indian majority control. Legal experts such as Atul Pandey (Khaitan & Co) and Vaibhav Kakkar (Saraf & Partners) note this is a nuanced recalibration, balancing strategic caution with India’s need for predictable, growth‑oriented capital inflows and integration into global supply chains.
