Daily News - Thursday, 9 April 2026
India Relaxes Chinese FDI Norms: 10% Non-Controlling Investments Allowed (Forbes India)
India has amended its FDI policy to allow non‑controlling investments up to 10% from neighboring countries, including China, under the automatic route, marking a cautious reopening after six years of restrictions. The move, approved by the Union Cabinet on March 10, 2026, is aimed at bridging India’s USD $102 billion (INR ₹8.46 lakh crore) trade deficit with China (April 2025-Feb 2026) and boosting technology partnerships. Sectors expected to benefit include consumer electronics, tech startups, power equipment, EVs, and solar components, with expedited clearance promised within 60 days for capital goods and electronic manufacturing. Chinese FDI in India had fallen sharply after Press Note 3 (PN3) in 2020, dropping to USD $67.35 million (INR ₹5.6 billion) in 2021-24, compared to USD $2.4 billion (INR ₹199 billion) between 2000-2020. Industry leaders such as Rajat Tandon (IVCA) and Neha Aggarwal (Deloitte India) say the calibrated easing will help startups access global capital while balancing openness with national security. Analysts note that this policy shift could strengthen India’s role in global supply chains, attract venture capital, and reduce reliance on imports, while maintaining safeguards for critical sectors.
India Approves USD $4.1 Billion Hydro Projects in Arunachal Pradesh (Reuters)
India has approved investment of over USD $4.1 billion (INR ₹341.7 billion) for two major hydro‑electric projects in Arunachal Pradesh, reflecting rising power demand and strategic concerns over the Brahmaputra river basin. The 1720 MW Kamala project, worth INR ₹260.7 billion (USD $2.83 billion), will be developed as a joint venture between NHPC Ltd and the Arunachal Pradesh government. The 1200 MW Kalai‑II project, costing INR ₹141.06 billion (USD $1.53 billion), will be executed by THDC India Ltd in partnership with the state government. Both projects are expected to be completed within 6–8 years, forming part of India’s broader plan to transmit 76 GW of hydroelectric capacity from the Brahmaputra basin by 2047, under a USD $77 billion (INR ₹7.1 lakh crore) transmission program. The Ministry of Power emphasized that these projects align with India’s target of 500 GW non‑fossil capacity by 2030 and achieving net zero by 2070. Strategically, India fears that upstream Chinese dams on the Yarlung Zangbo could reduce dry‑season flows by up to 85%, making domestic hydro expansion critical for energy security.
India Positions Africa as Strategic Partner in Global Trade and Security (CNBC TV18)
India has intensified its Africa outreach by focusing on defence, trade, investment, skilling, and capacity building, with External Affairs Minister S. Jaishankar chairing a Consultative Committee meeting in New Delhi. The discussions emphasized lines of credit, grants, education, and defence cooperation, alongside engagement in regional and multilateral forums. On the trade front, Commerce Minister Piyush Goyal met Ethiopia’s Trade Minister Kassahun Gofe Balami at the WTO Ministerial in Cameroon, exploring deeper collaboration under the African Continental Free Trade Area (AfCFTA), which spans 55 countries, USD $3.4 trillion GDP, and 1.3 billion people. India also held talks with Cameroon and South Africa to strengthen bilateral trade ties. Parallelly, Jaishankar hosted Bangladesh’s Foreign Minister (April 7-9, 2026) and St. Kitts and Nevis Foreign Minister Denzil L. Douglas, expanding cooperation in development, health, digital capacity, and disaster response. The Ministry of External Affairs sees Africa as central to India’s global strategy, balancing economic diplomacy with defence and people‑to‑people ties.
India Resumes Oil Imports from Venezuela: 12M Barrels Headed to West Coast (Business Standard)
India is set to import over 12 million barrels of Venezuelan crude in April 2026, the largest volume in nearly six years, as the Iran war disrupts flows through the Strait of Hormuz, which normally carries 40% of India’s oil supplies. The cargoes, mostly Merey blend and heavy Venezuelan barrels rich in middle distillates like diesel and jet fuel, were secured before the latest West Asia disruptions, signaling a long-term strategic shift. The Ottoman Sincerity tanker has already delivered 1 million barrels of Boscan crude to Reliance Industries’ Sikka port, marking the first Venezuelan cargo to India in a year. Reliance, holding a U.S. license to buy directly from PDVSA, also loaded its first cargo on the Helios VLCC, moving away from earlier intermediaries like Vitol and Trafigura. Analysts note that Venezuelan imports help India diversify supply while meeting demand for middle distillates, which remain structurally tight in global markets. The Ministry of Petroleum and Natural Gas views this as part of India’s broader energy security strategy, balancing geopolitical risks with supply diversification.
India Announces USD $26.7 billion Rescue Package Amid Iran War Shock (Times Now)
The Government of India is preparing a ₹2.5 lakh crore (USD $26.7 billion) rescue package to shield businesses hit by the Iran War crisis, modeled on the Emergency Credit Line Guarantee Scheme (ECLGS). The plan will provide a 90% sovereign credit guarantee on loans up to ₹1 billion (USD $10.75 million), valid for four years, through the National Credit Guarantee Trustee Company (NCGTC). Sectors most affected include textiles, glass, and chemicals, which face surging crude oil prices, raw material costs, and export disruptions, threatening India’s $174 billion textiles industry. Officials estimate the scheme will cost the government ₹170-180 billion (USD $1.83-1.94 billion) in fiscal outlay, similar to COVID‑era guarantees. Analysts warn India’s GDP growth could fall by 1% in FY27, from 6.8-7.2% to ~6%, due to higher energy costs and supply chain shocks. The Ministry of Finance and Department of Financial Services emphasize that the package aims to stabilize MSMEs, exporters, and manufacturing, while preventing a deeper slowdown in jobs and demand.
