Daily News - Wednesday, 1 April 2026
India Expands Bilateral Tax Pacts to 13 Countries Signs Record 219 Advance Pricing Agreements (APAs) in FY 2025-26 (CNBC TV18)
India’s Central Board of Direct Taxes (CBDT) signed a record 219 Advance Pricing Agreements (APAs) in FY 2025-26, taking cumulative signings to 1,034, marking a major shift toward a certainty driven tax regime. This compares with 174 APAs in FY25 and 125 in FY24, reflecting improved administrative capacity and growing acceptance among multinational companies. Notably, 84 bilateral APAs (BAPAs) were concluded with treaty partners including France, Ireland, Indonesia, and Sweden, reducing double taxation risks and strengthening India’s credibility in global tax negotiations. The Finance Act 2026 also revamped the Safe Harbour regime, consolidating IT service categories into a single segment with a uniform margin of 15.5%, and raising eligibility thresholds from ₹300 crore to ₹2,000 crore (USD $240M), widening access for IT and global capability centres. These reforms, overseen by the Ministry of Finance, provide companies with up to nine years of tax certainty (five years forward plus rollback provisions), cutting compliance costs and litigation. Analysts note that the combined impact of APAs and Safe Harbour reforms enhances India’s competitiveness as an investment destination, aligning with global best practices in transfer pricing.
India's Civil Aviation Ministry Orders 60% Free Seats on All Flights from April 20 (First Post)
The Directorate General of Civil Aviation (DGCA) has ordered airlines to make at least 60% of seats free of charge from April 20, 2026, compared to the current practice where only about 20% of seats are free and the rest cost between ₹200–₹2,100 (USD $2.40–$25) depending on location and legroom. The directive, issued via a revised Air Transport Circular on March 20, follows a push from the Ministry of Civil Aviation to improve transparency and passenger access. Airlines must also adopt clear seat allocation policies, ensuring passengers under the same Passenger Name Record (PNR) are seated together where possible. Optional charges for services such as carrying sports equipment or musical instruments must now be clearly displayed, along with liability terms. Members of the Federation of Indian Airlines, including IndiGo, Air India, and SpiceJet, have warned that restricting paid seat selection could lead to higher base fares as carriers attempt to offset revenue losses. Analysts note that while the move enhances consumer rights, it may reshape airline pricing structures and revenue models in India’s fast‑growing aviation market.
India’s $14 Trillion Dairy Sector Faces Crisis (Fortune India)
India, the world’s largest milk producer, has seen milk production growth fall from 6%-7% in 2022 to just 3.5%-3.78% annually over the past five years, creating a demand‑supply mismatch as demand continues to grow at 6%. Milk prices have risen by ₹2-₹5 per litre, driven by a 35%-40% increase in cattle feed costs, fodder shortages, and packaging cost hikes linked to polymer supply disruptions from the West Asia war. Industry leaders such as Srideep Kesavan (CEO, Heritage Foods) and Rahul Kumar (COO, Parag Milk Foods) warn that farm‑level milk prices are at a five-year high, squeezing margins. Only 30%-35% of milk enters the organised sector, with poor feed quality and diseases like lumpy skin disease further reducing cattle reproduction and milk yields. India produces about 240 million metric tonnes of milk annually, requiring 120 million tonnes of feed, but current feed production capacity is just 10 million tonnes, according to Godrej Agrovet. The Ministry of Fisheries, Animal Husbandry and Dairying is monitoring the crisis, as rising costs and climate pressures discourage younger farmers, threatening the sustainability of India’s USD $14 trillion (INR ₹1,166 lakh crore) dairy industry.
India’s FY26 GDP Growth at 7.6%, Fastest Among Major Economies Amid West Asia Conflict (Financial Express)
India’s economy grew a resilient 7.6% in FY26, according to the National Statistical Office (NSO), supported by strong domestic demand, GST rationalisation, and government capital expenditure, despite headwinds from US tariffs and global uncertainties. Rating agencies including Fitch (7.5%), Crisil (7.1%), and ICRA (6.5%) project FY27 GDP growth to moderate to the 6.5%-7.1% range, citing elevated crude oil prices and supply disruptions from the West Asia conflict. The Ministry of Finance has cautioned of considerable downside risks, projecting FY27 growth at 7%-7.4%, while noting fiscal consolidation remains on track with buoyant tax revenues and an S&P upgrade to BBB. Economists warn that a USD $10 (INR ₹830) per barrel rise in crude could widen the current account deficit (CAD) by 0.3-0.4% of GDP, with CAD potentially reaching 2.6% of GDP if oil averages USD $90 (INR ₹7,470) per barrel. Export‑oriented sectors such as textiles, gems and jewellery, leather, and engineering goods face pressure from US tariffs, though services exports and rural recovery provide buffers. Analysts highlight risks to corporate margins in energy‑intensive industries, MSMEs, and inflationary spillovers, but expect consumption support from lower GST rates, policy rate cuts, and farm sector measures.
