Daily News - Tuesday, 05 May 2026
India’s pharmaceutical exports in FY26 increased 2% to $31.1 billion compared with $30.47 billion in FY25 (Economic Times)
India’s pharmaceutical exports crossed $31 billion in FY26, marking a modest 2% growth over the previous year despite global headwinds. However, March 2026 saw a sharp 23% year-on-year decline, attributed to factors such as US tariff related overstocking, a slowdown in China’s generics demand, and logistics disruptions linked to the West Asia conflict. Shipments to the US fell by 10% and to China by 11.5%, while Africa, Oceania, and Latin America posted double‑digit growth, helping offset losses in key markets. Europe also contributed moderate gains, though analysts caution that its price sensitive nature makes it vulnerable to volatility. Drug formulations and biologicals remained the largest export category, accounting for over 74% of the total, while vaccines surged by 26%, highlighting India’s strength in critical healthcare segments.
India sets a fertiliser production target of 3.4 million tonnes for May 2026 after LNG supplies were restored (Financial Express)
India has set a domestic fertiliser production target of 3.4 million tonnes (MT) for May 2026 after LNG supplies were restored following disruptions from the West Asia conflict. The breakdown includes 2.2 MT of urea, 0.4 MT of diammonium phosphate (DAP), and 0.8 MT of NPK fertilisers, with several urea plants resuming operations. A global tender for 2.5 MT of urea imports and another for 1.9 MT of NPK fertilisers has been floated to meet peak demand. In April, urea output reached 2.09 MT, slightly below 2.18 MT in April 2025, after dipping to 1.65 MT in March due to LNG shortages. Since the conflict began, 8.4 MT of fertilisers have been added to stocks (6.77 MT from domestic production and 1.63 MT from imports). For the upcoming Kharif season, the requirement is 39.05 MT, and states have already stocked 19.57 MT (≈50%), while retail prices remain unchanged at ₹266.50 per 45 kg bag of urea and ₹1,350 per 50 kg bag of DAP, despite global prices exceeding ₹4,000 per bag.
India is projected to attract $800 billion in cumulative investments over the next five years, boosting its investment-GDP ratio to 37.5% by FY2030 (Business Today)
India is expected to see a massive investment surge, with Morgan Stanley projecting $800 billion in cumulative inflows over the next five years, raising the investment-to-GDP ratio to 37.5% by FY2030. Total investments are forecast to rise 1.6 times to $2.2 trillion by FY2031, supporting GDP growth of 6.5-7%. The report highlights India’s shift from energy transition to energy security plus transition, as coal output crossed 1 billion tonnes in FY25 and stockpiles reached 210 million tonnes, while non‑fossil capacity already stands at 262.7 GW. Defence spending is set to increase from 2% to 2.5% of GDP by FY2031, with domestic procurement at 75% and exports growing at a 28% annual pace. Meanwhile, India’s data centre capacity could expand from 1.8 GW to 10.5 GW by FY2031, creating a $60 billion industrial opportunity driven by AI and cloud demand.
India’s automakers including Toyota, Maruti Suzuki, Honda, Bajaj, and TVS prepare flex-fuel vehicles to run on E85 and E100 (Fortune India)
India has moved beyond its E20 blending milestone, with the government drafting rules to introduce E85 (85% ethanol) and E100 (near pure ethanol) fuels into the automotive ecosystem, a step welcomed by sugar and grain ethanol manufacturers as a boost to clean mobility and farmer incomes. The country achieved 20% nationwide blending in 2025, five years ahead of schedule, and distillery capacity already exceeds demand, offering scope to scale higher blends. Automakers such as Toyota, Maruti Suzuki, Honda, Bajaj, and TVS are developing flex-fuel vehicles, with models like the Honda CB300F FlexTech already compatible. Running on E100 can reduce mileage by about 27-30%, but lower pump prices are expected to offset this. Globally, Brazil’s long standing adoption of E100 flex-fuel vehicles provides a model for India’s transition. Beyond transport, the ethanol programme strengthens energy security, reduces India’s 90% dependence on oil imports, and diversifies farmer demand for sugarcane, maize, rice, and damaged foodgrains.
Foreign airlines flying to India face higher jet fuel bills as India raises industrial LPG prices nearly 48% (Reuters)
India’s state run refiner Indian Oil Corporation (IOC) has sharply raised prices of industrial LPG and aviation turbine fuel (ATF) for foreign airlines effective May 1, 2026, citing global crude oil prices surging past $100 per barrel due to supply disruptions from the Iran war and the closure of the Strait of Hormuz. The price of a 19 kg commercial LPG cylinder for industrial clients jumped ₹993 (47.8%) to ₹3,071.5, while ATF supplied to international carriers rose $76.55 per kilolitre to $1,511.86. In contrast, household LPG and jet fuel for domestic airlines remain unchanged, shielding consumers and domestic aviation from inflationary shocks. For foreign airlines, the ATF increase raises operational costs and could affect ticket pricing and route economics.
India outpaces China in nominal GDP growth and draws stronger global inflows while China sees slower capital inflows (News18)
India has outpaced China in nominal GDP growth and drawn strong global capital inflows, with investors favoring energy, infrastructure, financials, telecom, pharmaceuticals and data centres. The Nifty gained 6.7% in April versus Shanghai’s 5.6%, while US equities rose about 9% over the month. Despite a net fall of 1,181 points (-4.7%) in the Nifty between Feb 27 and Apr 30, April alone saw a recovery of 1,318 points (≈6%). Commodity moves included Brent crude rising about 8% in April and gold and silver slipping up to nearly 4%. Manufacturing remains underweight due to input cost and supply chain concerns.
