ECONOMY: NRIs Drive $100 Billion FCNR(B) Inflows, Lifting India’s Forex Reserves To Record $729.3 Billion

India’s forex reserves have surged to a record $729.3 billion after non-resident Indians (NRIs) poured $100 billion into the RBI’s FCNR(B) scheme, far exceeding expectations and prompting the central bank to close the window a month early.

Reports indicate that this inflow has given the RBI fresh firepower to stabilise the rupee amid oil-driven volatility and geopolitical tensions.

The Reserve Bank of India launched the Foreign Currency Non-Resident (Bank) or FCNR(B) program in June 2026 to attract overseas deposits from NRIs. By 31 August, collections had crossed the $100-billion mark, well above the $80 billion initially projected by RBI Governor Sanjay Malhotra.

The scheme’s success was so pronounced that the RBI decided to shut the FCNR(B) window ahead of its original 30 September deadline, citing concerns over reversal risks from excessive inflows. Banks, however, will continue to access the swap facility for contracted deposits until 11 September.

The inflows have significantly boosted India’s forex reserves, which now stand at $729.3 billion, compared to $682 billion in late July when reserves had been depleted by $46 billion due to the US-Iran war and rising global energy prices.

This replenishment has provided the RBI with greater ammunition to intervene in currency markets. On Tuesday, the rupee strengthened by 0.4% to 94.7988 against the US dollar, its strongest level since 1 July, supported by RBI’s dollar sales in offshore and onshore markets.

The FCNR(B) scheme allowed NRIs to deposit their overseas earnings in foreign currencies such as US dollars, with both principal and interest paid in the same currency. This protected depositors from rupee fluctuations while offering attractive tax-free returns.

To make the scheme more appealing, the RBI absorbed forex hedging costs normally borne by banks, particularly for deposits with three- to five-year tenures. By August 21, inflows through FCNR(B) accounted for $65.4 billion, while external commercial borrowings (ECBs) and overseas foreign currency borrowings (OFCBs) contributed $2.59 billion and $4.86 billion respectively.

This is not the first time India has tapped diaspora flows during economic stress. In 1991, during a balance-of-payments crisis, and again in 2013 amid the US Federal Reserve’s taper tantrum, similar measures raised billions from NRIs.

The current inflows are expected to comfortably finance India’s current-account deficit this financial year, strengthening the balance of payments and providing resilience against external shocks. Analysts note that the RBI’s calibrated move to close the window early was prudent, ensuring stability while preventing risks associated with sudden reversals.

The replenished reserves come at a crucial time, with elevated oil prices and geopolitical tensions continuing to weigh on India’s external sector. The RBI’s proactive measures have not only stabilised the rupee but also reinforced confidence in India’s ability to manage external vulnerabilities.

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Chinese Investment Pours Into India Ahead of Xi Jinping’s Expected Visit

India is cautiously reopening economic channels with China as diplomatic ties show signs of improvement, Economic Times reported.

National Security Adviser Ajit Doval’s visit to Beijing for talks with Wang Yi has coincided with the return of Chinese-linked capital into India. More than $500 million has entered the country within three months of the government relaxing parts of its post-Galwan investment regime. 

This marks the strongest revival of Chinese-linked investment flows since 2020, ahead of Xi Jinping’s likely participation in the BRICS summit in New Delhi.

The renewed investment flows do not indicate a return to the pre-2020 era of unrestricted Chinese business activity. Instead, India has adopted a measured framework that allows selected investment and industrial cooperation while maintaining scrutiny over strategic sectors and sensitive ownership structures.

The government continues to stress that peace and stability along the Line of Actual Control remain essential for normal ties, and border tranquillity is seen as a prerequisite for broader engagement.

Since late 2024, India and China have resumed direct flights, reopened business travel, restarted border trade and expanded diplomatic dialogue. Foreign Minister S Jaishankar’s recent discussions with Wang Yi included not only political issues but also market access, supply chains and trade imbalances. This reflects a deliberate effort to stabilise ties after years of confrontation.

Press Note 3, introduced in April 2020, had required government approval for all investments from countries sharing a land border with India, primarily targeting China. The restrictions slowed Chinese investment sharply, leaving many proposals pending for years.

However, India’s manufacturing ambitions, particularly in electronics, electric vehicles, renewable energy and advanced manufacturing, remained deeply connected to Chinese technologies and supply chains. This forced policymakers to reconsider the framework.

In May this year, the government introduced significant relaxations. Investors with non-controlling Chinese or land-border-country ownership of up to 10% were allowed to invest through the automatic route.

The beneficial ownership test was shifted to the investor entity level, reducing compliance hurdles for global funds with limited Chinese exposure.

Certain sectors were also brought under a time-bound approval framework. As a result, 29 proposals worth nearly ₹4,900 crore have already been reported, spanning IT, AI, manufacturing, pharmaceuticals, data centres, communication services and transport. The capital has come through entities registered in the US, Mauritius, Singapore, Japan, South Korea, Luxembourg and the Cayman Islands.

The easing reflects both economic realities and diplomatic considerations. Indian industry has argued that blanket restrictions on Chinese-linked investment impose costs on domestic manufacturing. Economists such as Sajjid Chinoy have suggested that attracting Chinese investment into Indian manufacturing may be more productive than relying solely on tariffs. The government appears to have accepted part of this argument while retaining safeguards.

India’s new playbook favours structures where Indian companies retain control while Chinese firms contribute technology, manufacturing expertise and supply-chain access.

The Vivo-Dixon joint venture exemplifies this model, with Dixon holding a majority stake and Vivo as a minority partner. Similar structures have emerged with HKC and Longcheer, resembling the earlier JSW-MG automobile transaction. This approach allows India to access Chinese know-how without compromising strategic control.

Diplomacy and economics are moving together. Since the Modi-Xi meeting in Kazan in 2024, ties have gradually thawed. Modi’s visit to Tianjin for the SCO summit, resumed flights, reopening of border trade and supply-chain discussions all point to deliberate stabilisation.

Yet challenges remain. India continues to run a trade deficit of over $100 billion with China, and unresolved border disputes persist despite relative stability.

Xi Jinping’s potential visit to India for the BRICS summit would symbolise this shift. His presence would coincide with the revival of Chinese-linked investment flows and India’s pragmatic approach of selective engagement.

The $500 million already invested is modest compared to India’s overall needs, but it signals direction. India and China appear to be moving from confrontation towards cautious cooperation, balancing economic engagement with national security safeguards.

Doval’s Beijing trip and the revival of investment flows are interconnected developments. As political channels reopen and summit diplomacy gathers pace, capital is beginning to follow. Whether this leads to a larger rapprochement will depend on the durability of border stability and the willingness of both sides to manage differences. For now, before Xi’s likely visit, Chinese-linked money is already pouring into India.

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India Modernises Nuclear Sector With SHANTI Act, Private Entry And 100 GW Target

India’s SHANTI Act, 2025 is a landmark law that modernises the nuclear energy sector, enabling private and foreign participation while targeting a massive expansion of capacity from 8.78 GW today to 100 GW by 2047.

The draft rules introduce composite licensing, mandatory insurance, and clear liability frameworks, alongside major investments in Small Modular Reactors (SMRs).

India has notified draft rules under the SHANTI Act to allow private companies into the nuclear energy sector. These rules explain the approvals required, the safety responsibilities, and the financial obligations that private players must meet.

The Act is part of the government’s broader plan to reduce dependence on fossil fuels and expand nuclear power capacity.

The SHANTI Act stands for Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India. It was enacted in 2025 to replace older laws such as the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010. Those laws were outdated, and India needed a single, modern framework to cover present and future nuclear requirements.

India currently has 8.78 GW of nuclear power capacity, which contributed about 3.1% of electricity in 2024–25. Several new reactors are under construction, including indigenous 700 MW and 1,000 MW units. The government expects capacity to reach 22.38 GW by 2031–32, with the long-term target of 100 GW by 2047.

The Nuclear Energy Mission, announced in the Union Budget 2025–26, allocated ₹20,000 crore for the development and deployment of Small Modular Reactors. At least five indigenously designed SMRs are planned to be operational by 2033.

BARC is developing the 200 MWe Bharat Small Modular Reactor, the 55 MWe SMR-55, and a high-temperature reactor capable of producing hydrogen.

The draft rules under the SHANTI Act introduce a single-window composite licence covering construction, operation, and decommissioning of nuclear plants. This replaces the earlier system of multiple permits.

They also mandate strict insurance and financial security for nuclear operators, with liability limits ranging from ₹100 crore for smaller facilities to ₹3,000 crore for large plants. The government has set an overall statutory ceiling of 300 million SDRs for nuclear incidents.

Foreign reactor designs can be used only if they are already approved and operational in their country of origin. The rules also require periodic review of operator liability every five years by an expert group. Financial security must remain in place until all spent fuel is removed from storage pools.

Private companies will now be able to build, own, and operate nuclear power plants, as well as participate in research and development.

Foreign direct investment of up to 49% is permitted through joint ventures with Indian entities, ensuring majority domestic control. Firms such as Adani Group, Larsen & Toubro, and TATA Power are expected to benefit from these reforms.

The Atomic Energy Regulatory Board has been given statutory recognition, strengthening oversight of safety, radiation exposure, waste management, and emergency preparedness. The Centre retains exclusive control over sensitive activities such as uranium enrichment, spent fuel management, and heavy water production.

The SHANTI Act thus represents a major transformation of India’s nuclear sector. It combines legal modernisation, private-sector participation, liability reform, and technological innovation. By integrating SMRs, advanced reactors, and foreign collaboration under strict regulation, India aims to achieve energy security, decarbonisation, and technological self-reliance.

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Bharat Forge Commits ₹1,800 Crore Capex To Drive Growth In Aerospace, Defence, Semiconductors And Data Centres

Bharat Forge is committing ₹1,800 crore in capital expenditure across aerospace, defence, semiconductor components, data centres and power systems, while navigating short-term margin pressures.

Vice Chairman Amit Kalyani has confirmed a one-time ₹350 crore charge, revised revenue guidance, and plans to raise ₹2,500 crore to fund future expansion, signalling a bold long-term growth strategy despite global demand slowdown and rising energy costs.

Bharat Forge is currently facing margin pressures due to higher energy costs and a slowdown in global demand. The company has taken a one-time charge of ₹350 crore, which has impacted near-term profitability. Despite this, management remains confident in its long-term trajectory, revising revenue guidance to reflect current market realities while doubling down on strategic investments.

The company has announced an ambitious ₹1,800 crore CAPEX plan. This investment will be spread across aerospace, defence, semiconductor components, data centres and power systems.

The aerospace segment will see significant expansion, with Bharat Forge aiming to strengthen its role in both civil and military aviation supply chains. Defence remains a core pillar, with new projects expected to enhance India’s self-reliance in advanced platforms and systems.

In semiconductors, Bharat Forge is building on its earlier entry into lithography machine components, now scaling up to support India’s semiconductor ecosystem under the India Semiconductor Mission. The company’s push into data centres reflects the growing demand for digital infrastructure, with investments planned in high-capacity server systems and energy-efficient cooling technologies. Power systems will also receive attention, particularly in renewable-linked transmission and advanced turbine components.

To fund this expansion, Bharat Forge plans to raise ₹2,500 crore. This capital will provide flexibility for both organic growth and potential acquisitions, ensuring the company can seize opportunities in emerging sectors. The strategy aligns with India’s broader industrial and technological priorities, positioning Bharat Forge as a key player in aerospace, defence and semiconductor ecosystems.

Vice Chairman Amit Kalyani emphasised that while short-term pressures are real, Bharat Forge’s long-term vision remains intact. The company is balancing immediate challenges with structural investments that will define its future growth. He noted that global defence demand, India’s semiconductor ambitions, and rising digital infrastructure needs all converge to create a unique opportunity for Bharat Forge.

The company’s diversification into data centres and semiconductor components marks a significant evolution from its traditional manufacturing base. By integrating defence, aerospace and digital infrastructure, Bharat Forge is positioning itself as a multi-sector industrial powerhouse. This approach not only mitigates risks from cyclical downturns but also ensures relevance across multiple high-growth domains.

The expansion program will also strengthen Bharat Forge’s export footprint. With nearly 40% of defence sales already going overseas, the company expects new aerospace and semiconductor projects to further boost international revenues. This aligns with its strategy of combining domestic self-reliance with global competitiveness.

Overall, Bharat Forge is navigating short-term headwinds with a decisive long-term investment plan. The ₹1,800 crore capex, coupled with a ₹2,500 crore fundraise, underscores its ambition to be at the forefront of India’s industrial transformation. The company’s ability to balance immediate challenges with structural growth investments highlights its resilience and strategic foresight.

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US Ambassador Sergio Gor Meets FM Secretary Misri, MP Milind Deora To Boost India–US Trade And Investment Ties

US Ambassador to India Sergio Gor held separate meetings in New Delhi with Foreign Secretary Vikram Misri and Shiv Sena Rajya Sabha MP Milind Deora. Both engagements centred on strengthening India-US relations, with particular emphasis on trade and investment.

Gor shared updates on his official X account. He posted that it was “always good” to meet with Foreign 

Secretary Misri, signalling the importance of continued dialogue at the highest diplomatic levels. In another post, he highlighted his meeting with Milind Deora, noting that they exchanged views on the partnership between India and the United States. Gor described the discussion as productive, focusing on opportunities to expand trade and investment between the two nations.

These meetings come at a time when India and the United States are actively working to deepen their bilateral partnership. Economic ties and avenues for greater trade and investment remain central to this engagement, reflecting the broader strategic alignment between the two countries.

Just days earlier, on August 8, Gor visited Kerala for the first time. He praised the state’s famed backwaters, describing his experience as “absolutely incredible” and expressing a desire to return. Speaking to reporters, he encouraged others to visit the southern state, noting that although he spent only one day there, he looked forward to coming back.

During his Kerala visit, Gor met Chief Minister VD Satheesan. He described the meeting as warm and insightful, with discussions covering higher education, technology, and port infrastructure. Gor emphasised the potential for collaboration in these areas, particularly through joint research, university partnerships, and academic exchanges between US and Kerala institutions.

Satheesan also posted on X about the meeting, highlighting strategic opportunities for bilateral growth. He noted that education and innovation were key areas of focus, with plans to expand cooperation between US and Kerala institutions. The discussions underscored the importance of building stronger ties in education, technology, and infrastructure as part of the wider India-US partnership.

These engagements reflect Gor’s active diplomatic outreach across India, combining high-level meetings in New Delhi with regional visits that explore new avenues of cooperation.

His interactions with both national and state leaders demonstrate a comprehensive approach to strengthening ties, ensuring that economic, educational, and technological collaboration remain at the forefront of the India-US relationship.

ANI

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American Companies Deepen Investment And Trade Ties With India

US Ambassador to India Sergio Gor on Friday underscored the scale of American corporate interest in India, describing the country as a vital investment destination and a trusted partner in global trade. 

Speaking at the QUANTUM exhibition in Bangalore, he highlighted that bilateral trade between India and the United States has surged from around $20 billion a decade ago to over $240 billion today, reflecting unprecedented growth in economic ties.

He pointed out that Karnataka alone hosts more than 1,000 American companies, a figure that continues to rise steadily. Gor remarked that few regions worldwide can boast such a concentration of US firms, underlining the depth of engagement between the two economies. He stressed that the United States is committed to being present in India, with companies expanding their footprint daily.

The ambassador revealed that American businesses frequently approach the US Embassy in New Delhi to explore opportunities in India. He explained that week after week, new firms establish operations, seeking mutually beneficial partnerships. Gor emphasised that this momentum is not abstract but visible in tangible results, with trade volumes and investments steadily climbing.

Reflecting on the rapid expansion of bilateral trade, he noted that the leap from $20 billion to $240 billion in just ten years demonstrates the strength of the partnership. He said that every week and every month brings fresh engagement, reinforcing the trajectory of growth.

Gor also highlighted the strategic breadth of cooperation between the two nations. He observed that India conducts more military exercises with the United States than with any other country, a sign of deepening defence ties. In healthcare, he pointed out that 40 per cent of generic pharmaceuticals consumed in the United States originate from India, a reliance rooted in trust and reliability.

He underscored India’s inclusion in the US-led Pax Silica initiative, describing it as a milestone in building resilient and trusted global supply chains.

He explained that one of his first priorities upon assuming office was to secure India’s participation in Pax Silica, which is designed to safeguard critical supply chains in technology and innovation. India was among the first ten countries invited to join, ahead of several longstanding US allies such as Germany and Japan, reflecting Washington’s confidence in New Delhi.

The envoy stressed that the scale of interest among leading American companies in India is unmatched. He revealed that in just one day he had met with executives from Meta, Rolls-Royce and Netflix, illustrating the breadth of engagement across sectors. He added that if one looked at his monthly schedule, the sheer number of US firms visiting India would be unparalleled.

Gor remarked that there is no sector in which India and the United States are not working together. He said that from advanced manufacturing to space exploration, from environmental programs to cutting-edge technology, collaboration is expanding rapidly.

He noted that critical and emerging technologies remain central to the partnership, with both countries committed to nurturing the next generation of scientists and innovators.

On social media, Gor shared highlights from his visit to the QUANTUM exhibition, reiterating the importance of scientific collaboration. Earlier in the day, he held meetings with industry leaders and government representatives to advance cooperation in advanced manufacturing, technology, space and environmental sectors.

The ambassador’s remarks reinforced the message that India is not only a trusted partner but also a preferred destination for American investment. He stressed that the partnership is expanding across every domain, driven by trust, shared values and a commitment to innovation.

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India’s Private Space Sector Gains Momentum With Policy Support And Global Investment

The Department of Space has confirmed that India’s private space sector is maturing rapidly, with measurable outcomes six years after the reforms of June 2020 opened the industry to private participation.

In 2026 alone, investment worth $187 million was reported, while IN‑SPACe granted 108 authorisations to Non‑Government Entities for activities ranging from satellite operations to launch systems. This reflects a significant expansion of private involvement in India’s space program.

The Indian Space Policy 2023 has defined roles and responsibilities for all stakeholders, supported by a liberalised FDI policy and detailed norms for authorisation.

IN‑SPACe is also drafting safety and security guidelines to ensure strategic and national interests are protected. Seventeen start‑ups have already received authorisation to carry out space activities, signalling confidence in the regulatory framework.

The government has rolled out multiple initiatives to support private players. These include a ₹1,000 crore Venture Capital Fund, a ₹500 crore Technology Adoption Fund, discounted pricing for ISRO facilities, and the IN‑SPACe Seed Fund Scheme.

Access to ISRO infrastructure, mentorship, and technology transfer has been enabled, alongside skill development programs and the establishment of a technical centre for affordable testing and simulation. 

The PSLV Orbital Experimental Module has provided a low‑cost platform for space worthiness validation, while promotional events such as industry meets and awareness workshops have created business opportunities.

Further measures include the launch of “Satellite Bus as a Service” to accelerate indigenous satellite development, and encouragement for state governments to establish space manufacturing clusters. 

These clusters aim to strengthen the domestic supply chain, attract investment, and build an integrated industrial ecosystem. Together, these initiatives are designed to increase India’s share of the global space economy.

The outcomes are striking. Active space start‑ups have grown from just one in 2014 to over 400 today. Private investment has crossed $600 million, with cumulative funding rising from $100.5 million in 2021‑22 to $618.5 million by March 2026.

The investor base has broadened to include sovereign wealth funds, global asset managers, and strategic corporates.

Skyroot Aerospace became India’s first space‑tech unicorn, Digantara raised $50 million with international backing, and Pixxel secured investment from Alphabet. Dhruva Space, GalaxEye, and Agnikul Cosmos have also attracted significant funding, reflecting strong commercial traction.

Private missions have demonstrated capability both at home and abroad. Pixxel, Digantara, and XDLINX Spacelabs reached orbit together in 2025, while Pixxel completed the first phase of its Firefly constellation, now the highest‑resolution hyperspectral system in service.

Dhruva Space flew multiple missions, and firms such as Bellatrix, GalaxEye, HEX‑20, and OrbitAid have showcased orbital capabilities. Agnikul test‑fired its 3D‑printed semi‑cryogenic engine, and Skyroot tested a solid motor for its Vikram rocket. The POEM platform has revolutionised space qualification, carrying payloads from numerous start‑ups and academic institutions.

Commercial reach is expanding globally. Digantara has opened offices in the US and Europe, Pixxel supplies hyperspectral data internationally, and IN‑SPACe has working relationships with over 45 countries.

India’s first privately owned Earth‑observation constellation is being built by Allied Orbits, a consortium of Pixxel, Dhruva Space, SatSure, and PierSight, with a commitment of ₹1,200 crore to deploy 12 multimodal satellites over five years.

The government’s proactive measures in policy reform, infrastructure development, skill creation, capital access, technology transfer, demand generation, and international collaboration are reshaping India’s space sector.

The private industry is now a vital partner in national space ambitions, complementing ISRO’s heritage and infrastructure with agility, innovation, and capital. This synergy is positioning India as a rising force in the global space economy.

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Nirmala Sitharaman Invites French Businesses To Join India’s Viksit Bharat 2047 Journey

Union Finance Minister Nirmala Sitharaman has extended an invitation to French businesses and investors to deepen their engagement with India, emphasising the opportunities available in artificial intelligence, clean energy, healthcare, digital infrastructure and financial services.

Her remarks were delivered during the India–France Business Roundtable in Paris, where she set the context of a rapidly evolving global economy shaped by technological transformation, supply chain diversification, energy transition and geopolitical developments.

She underlined that the India–France Strategic Partnership is uniquely positioned to drive the next phase of sustainable, resilient and innovation-led growth.

The Ministry of Finance highlighted in a post on X that Sitharaman noted India and France are trusted partners in shaping the global AI ecosystem. She pointed to new opportunities for collaboration in trusted AI, digital infrastructure and next-generation technologies, stressing the importance of aligning both nations’ strengths in these critical areas.

She also drew attention to the strong momentum in bilateral economic engagement, noting that India–France trade has doubled over the past decade. The presence of around 1,000 French companies operating in India was acknowledged as a testament to the depth of economic ties.

Sitharaman emphasised India’s position as a leading digital economy, powered by Digital Public Infrastructure such as Aadhaar, UPI, DigiLocker, ONDC and India Stack. She noted that India accounts for nearly half of the world’s real-time digital payments, underscoring the scale and efficiency of its digital transformation.

She invited investors to explore deeper collaboration across healthcare, pharmaceuticals and biotechnology, highlighting the complementary strengths of both countries in life sciences, vaccines, active pharmaceutical ingredients, clinical research, precision medicine and digital health. She stressed that such collaboration could help build resilient healthcare value chains.

The Finance Minister also outlined India’s ambitious clean energy transition, including the target of 500 GW of non-fossil fuel capacity by 2030. She highlighted the National Green Hydrogen Mission and Production Linked Incentive schemes as key drivers of substantial opportunities for investment in renewable energy, green hydrogen, battery storage, offshore wind and smart grids. These initiatives, she explained, are central to India’s strategy to achieve sustainable growth while addressing climate challenges.

Sitharaman drew attention to the International Financial Services Centres Authority (IFSCA), which has emerged as a leading global financial hub. As of June 2026, it has more than 1,200 registered entities, banking assets worth USD 111 billion and cumulative banking transactions of USD 176 billion.

She noted that expanding opportunities exist across banking, fund management, leasing, Global Capability Centres, reinsurance and sustainable finance. She also highlighted the National Investment and Infrastructure Fund (NIIF), which offers long-term investment opportunities through its upcoming USD 3.5 billion Infrastructure Fund II and USD 1 billion Private Markets Fund II. These funds will support infrastructure, digital infrastructure, green hydrogen, energy transition and other high-growth sectors.

In her concluding remarks, Sitharaman invited French businesses and investors to partner with India in its journey towards Viksit Bharat 2047. She emphasised the need to strengthen the India–France Strategic Partnership and work towards shared prosperity for both nations.

According to the Ministry of Finance, participants from leading French financial institutions shared their current business and investment engagement in India. They acknowledged India’s decadal reforms, efforts to reduce the compliance burden and initiatives to facilitate businesses. They also offered suggestions for establishing deeper and more sustainable investment collaboration between the two countries.

Her outreach reflects India’s determination to integrate its economic and technological strengths with global networks, ensuring that both nations can co-develop solutions that address shared challenges while contributing to global prosperity.

ANI

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Amazon CEO Andy Jassy Meets PM Mode, Announces $48 Billion India Investment To Boost Ecommerce And AI Cloud Expansion

Amazon’s Chief Executive Officer Andy Jassy met Prime Minister Narendra Modi in New Delhi on Thursday and announced a landmark investment plan of $48 billion in India between 2026 and 2030. 

This investment is aimed at expanding Amazon’s e-commerce operations and strengthening its artificial intelligence and cloud infrastructure in the country.

Jassy reaffirmed Amazon’s long-term commitment to India and revealed that the company will allocate an additional $13 billion specifically for AI and cloud infrastructure expansion by 2030.

This brings the total planned investment in AI and cloud infrastructure to over $21 billion within the broader $48 billion package, positioning Amazon as one of the largest global investors in these sectors in India.

The investment will significantly expand Amazon Web Services (AWS) data centre capacity in Mumbai and Hyderabad. This expansion will provide start-ups, enterprises, and government organisations with access to advanced AI chips, managed AI services, secure cloud technologies, and developer tools. The aim is to accelerate innovation, enable rapid scaling, and support Indian businesses in serving customers worldwide.

Amazon’s cumulative investments in India from 2010 to 2030 will surpass $88 billion. Jassy highlighted that since Amazon’s entry into India over a decade ago, the company has experienced tremendous growth across its businesses, particularly in e-commerce, AI, and cloud services. He emphasised that the new investment will meet strong demand across these sectors and contribute to India’s national priorities.

Jassy expressed admiration for Prime Minister Modi’s vision of a Viksit Bharat and Atmanirbhar Bharat, noting that Amazon is committed to being a long-term partner in India’s growth story.

He thanked the Prime Minister for his leadership and underlined the growing importance of India in Amazon’s global operations, which include e-commerce, AI and cloud, and entertainment.

He pointed out that Amazon’s India business is on a strong growth trajectory, with robust customer demand in both e-commerce and AWS. Since its launch in India, Amazon has digitised 12 million small businesses, enabled over $20 billion in cumulative e-commerce exports, and supported 2.8 million jobs. 

Additionally, the company has trained more than 10 million Indians in cloud skills.

In alignment with the government’s priorities, Amazon pledged to continue focusing on AI-led digitisation, export growth, and job creation. The company has set ambitious targets to support 3.8 million jobs, facilitate $80 billion in cumulative exports, extend AI benefits to 15 million small businesses, and provide AI education to 4 million government school students by 2030.

This announcement underscores India’s growing role as a hub for global technology and innovation, with Amazon’s massive investment expected to accelerate the country’s digital transformation, strengthen its AI ecosystem, and enhance its position in global supply chains.

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British Envoy Lindy Cameron Calls India-UK Trade Pact Historic As Fastest Deal To Be Implemented

British High Commissioner to India Lindy Cameron has hailed the India-UK Comprehensive Economic and Trade Agreement as historic, describing it as the fastest trade deal ever put into force between the two nations.

The agreement, signed less than a year ago at Chequers in the presence of Prime Minister Narendra Modi and UK Prime Minister Keir Starmer, will come into effect on 15 July 2026. Cameron emphasised that this rapid implementation underscores the importance of the bilateral relationship and provides a significant opportunity for both countries to reap economic benefits at a complicated time globally.

The deal was announced after a breakthrough at the G7 Summit and aims to double bilateral trade to between USD 100 and 120 billion by 2030. Cameron highlighted that several sectors will benefit, including textiles, footwear, cars, and Scotch whisky.

She noted that the UK will grant immediate duty-free access to 99 per cent of Indian exports, which will particularly benefit labour-intensive industries such as textiles, leather, marine products, and pharmaceuticals. On the Indian side, import tariffs on British Scotch whisky will be reduced from 150 per cent to 40 per cent, a major concession that is expected to boost UK exports.

The High Commissioner acknowledged that steel remains a sensitive issue for both countries. She confirmed that discussions had taken place to address India’s concerns regarding the UK’s steel safeguard measures.

Government sources later clarified that around 85 per cent of India’s steel exports would remain outside the scope of these measures, with concessions negotiated on 188 tariff lines. This ensures that the majority of India’s steel trade with the UK will not be adversely affected.

Indian government sources described the pact as the most aspirational agreement so far, opening up a market worth over USD 500 billion for Indian businesses. They stressed that customs notifications and related processes are being prepared to ensure exporters can avail concessions from day one, with consignments expected to benefit from reduced tariffs starting 15 July itself.

The agreement is expected to provide Indian exporters with an additional tariff advantage of 7 to 10 per cent, bringing India on par with other countries that already enjoy zero-duty access to the UK market. Sources added that over 99 per cent of India’s tariff lines and trade will be reduced to zero duty under the pact.

India currently enjoys a trade surplus with the UK in both merchandise and services. In 2024, India’s services exports to the UK stood at USD 21.6 billion, compared with UK services exports to India valued at USD 13.7 billion.

In 2025, India’s merchandise exports to the UK were USD 13.7 billion, while imports from Britain amounted to USD 9.47 billion. The agreement is expected to further strengthen this surplus, while also expanding opportunities for British exporters in India.

The growing economic engagement between the two countries is evident, with more than 900 Indian companies currently operational in the UK. The CETA is expected to deepen this partnership further, creating new avenues for investment, innovation, and collaboration across diverse sectors. Both governments have described the deal as a landmark achievement that will transform bilateral trade and economic relations.

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India’s Defence Production Hits Record ₹1.78 Lakh Crore, Private Sector Role Expands

India’s defence production has reached a historic peak of ₹1.78 lakh crore in FY 2025‑26, marking a 15.6 per cent rise from the previous year and more than doubling output since FY 2020‑21. This milestone reflects the expanding role of the private sector, record exports, and sustained policy support under the Aatmanirbhar Bharat initiative.

India’s annual defence production has surged to an unprecedented ₹1.78 lakh crore in FY 2025‑26. This represents a 15.6 per cent increase over the previous year’s output of ₹1.54 lakh crore, and a remarkable 110 per cent growth compared to FY 2020‑21 when production stood at ₹84,643 crore. The achievement underscores the rapid expansion of India’s indigenous defence manufacturing base.

The growth trajectory is even more striking when viewed over the past decade. Indigenous defence production has risen nearly fourfold from ₹43,746 crore in FY 2013‑14, reflecting the cumulative impact of sustained investment, policy reforms, and industrial participation.

This expansion has been driven by the government’s push for self‑reliance in defence under the Aatmanirbhar Bharat initiative, spearheaded by Prime Minister Narendra Modi.

Defence Public Sector Undertakings and other PSUs accounted for approximately 76 per cent of total production, while the private sector contributed 24 per cent. The private sector’s share, valued at around ₹42,000 crore, is at its highest ever, up from 22 per cent in FY 2024‑25.

This reflects the growing role of private industry in India’s defence ecosystem, with firms increasingly involved in manufacturing advanced systems such as drones, missiles, and electronic warfare equipment.

The surge in production has directly contributed to record defence exports, which reached ₹38,424 crore in FY 2025‑26. Indian‑made systems are now exported to more than 80 countries, demonstrating global confidence in the reliability and cost‑effectiveness of India’s defence products. This export success strengthens India’s position as a rising defence supplier in the international market.

Defence Minister Rajnath Singh credited the inspiring leadership of Prime Minister Modi for this achievement, highlighting the collective efforts of the Department of Defence Production, PSUs, and private industry. He emphasised that the upward trajectory is a clear indicator of India’s expanding defence industrial base and its ability to meet both domestic and international demand.

Policy support has been central to this success. Measures such as the Defence Acquisition Procedure 2020, Positive Indigenisation Lists, and liberalised FDI norms have streamlined procurement, encouraged innovation, and created predictable demand for domestic manufacturers. Initiatives like Innovations for Defence Excellence (iDEX) have further enabled start‑ups and smaller firms to contribute to defence technology development.

The government has also increased the defence budget significantly, with FY 2026‑27 allocations rising to ₹7.85 lakh crore, up 15.3 per cent from the previous year. This sustained financial commitment ensures continued acceleration in defence production and modernisation.

India’s defence production milestone is not just about numbers; it represents a strategic shift towards autonomy, resilience, and global competitiveness.

By reducing dependence on imports, India has enhanced its sovereignty in defence decision‑making and secured its supply chains against external disruptions. The export achievements simultaneously position India as a responsible contributor to global security.

Agencies

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Piyush Goyal Invites French Businesses To Partner With India For Shared Growth

Union Commerce Minister Piyush Goyal has extended a strong invitation to French businesses and investors to partner with India, emphasising the shared goal of advancing growth and prosperity between the two nations.

His remarks came during a visit to France, where he attended a dinner hosted by Harish Salve, the distinguished legal luminary and Chairperson of the Board of IIT-Delhi. The gathering brought together leaders of industry from India and France, members of the academic and research community, and innovators.

Goyal highlighted that under the leadership of Prime Minister Narendra Modi and French President Emmanuel Macron, the India–France partnership has gained new momentum, elevated across strategic, economic, technological and innovation-driven sectors.

In his post on X, Goyal reiterated his call for businesses and investors to join hands with India in advancing shared growth and prosperity, while working towards a brighter and more sustainable future for the people of both nations.

His engagements in France also included a visit to Sophia Antipolis, Europe’s premier science and technology hub, often described as Europe’s Silicon Valley. The hub is recognised for its unique ecosystem that integrates research, talent and enterprise to drive rapid economic advancement.

Goyal noted that with over 2,600 companies operating across cutting-edge sectors, Sophia Antipolis offers a compelling example of how collaboration between research and enterprise can accelerate technological progress.

During his interactions with industry leaders at the technology park, Goyal championed India’s vision under Prime Minister Modi’s leadership, positioning the country as a global powerhouse for innovation and manufacturing.

He invited industry captains to become active partners in India’s remarkable growth story, stressing that as India advances towards becoming a global hub for innovation and manufacturing, opportunities to collaborate, invest and scale together have never been more promising.

His remarks underscored India’s ambition to align with global innovation ecosystems while strengthening its domestic capabilities.

In a separate engagement, Goyal met with Nice’s Mayor Eric Ciotti to reinforce technological ties between India and France. He hosted a dinner attended by distinguished leaders from government, business, innovation and investment ecosystems, further strengthening the collaborative spirit between the two nations.

Goyal emphasised that as India moves towards the vision of Viksit Bharat, its partnership with France is opening new avenues for co-innovation and technological progress. He stressed that these efforts are not only designed to benefit both countries but also to contribute positively to the wider global community.

The visit coincided with Bharat Innovates 2026, hosted at the Palais des Expositions in Nice. The event showcases India’s deep-tech capabilities on the global stage, featuring 120 innovative start-ups and over 20 Institutes of Excellence across 13 critical technology domains.

More than 350 leading investors and venture capitalists from around the world are participating, reflecting the global interest in India’s innovation ecosystem. Bharat Innovates 2026 builds on the momentum of Indo-French cooperation and highlights India’s commitment to becoming a global innovation hub consistent with the vision of Viksit Bharat.

By engaging with French businesses, investors and policymakers, Goyal’s visit has reinforced the strategic and economic partnership between India and France.

His outreach reflects a broader effort to integrate India’s innovation ecosystem with global networks, ensuring that both nations can co-develop solutions that address shared challenges while contributing to global technological advancement.

ANI

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PM Modi Highlights 200% Surge In Nordic Investments Into India, Calls For Deeper Strategic Partnership

Prime Minister Narendra Modi underscored the remarkable growth in economic cooperation between India and the Nordic countries during his remarks at the joint statements following the third India‑Nordic Summit in Oslo.

He highlighted that investments from Nordic nations into India have surged by nearly 200 per cent over the past decade, reflecting the deepening financial and commercial integration that has injected immense dynamism into mutual growth. Modi noted that this expansion has fostered stronger commercial ties and generated substantial employment opportunities, benefiting both regions.

The Prime Minister recalled that the India‑Nordic Summit format was established eight years ago to provide energy and speed to bilateral relations. He expressed satisfaction that in the last few years, special progress had been achieved, with bilateral trade increasing nearly fourfold in ten years.

He emphasised that investment funds from Nordic countries are becoming important partners in India’s rapid growth, contributing positively to India’s economic story while also creating thousands of jobs in the Nordic economies.

The summit placed strong emphasis on the synergy between India’s vast market potential and the Nordic region’s expertise in green technologies, sustainable infrastructure, and clean energy. This booming economic partnership took centre stage at the proceedings, where Modi underlined the push towards deepening strategic and economic cooperation.

He shared on social media that the summit reflected the growing depth and dynamism of India’s partnership with the Nordic region, with discussions focusing on sustainability, innovation, clean energy, emerging technologies, and strengthening cooperation for a peaceful and prosperous future. He reiterated that India and the Nordic countries are united by shared democratic values, trust, and a common commitment to human‑centric development.

Ahead of the summit, Modi held a series of high‑level bilateral meetings with Nordic leaders to set the momentum for cohesive multilateral cooperation. His meeting with Iceland’s Prime Minister Kristrun Frostadottir explored opportunities in green technology and maritime wealth.

Modi praised Iceland’s strengths in the Blue Economy and expressed hope that the India‑EFTA Trade and Economic Partnership Agreement (TEPA) would further boost trade and investment linkages. The discussions also spanned innovation, digital technologies, the creative economy, Arctic cooperation, and people‑to‑people exchanges, while both leaders exchanged views on regional and global issues of mutual concern.

In his meeting with Finnish Prime Minister Petteri Orpo, Modi focused on scaling up partnerships in next‑generation digital architecture, including artificial intelligence, 5G and 6G networks, quantum technologies, and circular economy models.

Both leaders underlined the importance of the early entry into force of the India‑EU Free Trade Agreement while exchanging perspectives on pressing global developments. Modi also met Danish Prime Minister Mette Frederiksen to further strengthen the green strategic partnership between India and Denmark, reinforcing cooperation in sustainability and digitalisation.

The five Nordic nations collectively boast a financial output exceeding USD 1.9 trillion and are recognised as global pioneers in green transition models. Modi’s visit to Norway marked the first by an Indian Prime Minister in over four decades, the last being Indira Gandhi in 1983.

The Ministry of External Affairs highlighted the deep economic significance of the trip, noting that it would provide fresh impetus to bilateral trade and investment ties with Nordic countries. The engagements are expected to help build resilient supply chains following the India‑EU Free Trade Agreement and the landmark India‑EFTA TEPA signed with Iceland, Liechtenstein, Norway, and Switzerland.

Modi arrived in Norway after completing bilateral engagements in Sweden, as part of a wider five‑nation tour covering the UAE, the Netherlands, Sweden, Norway, and Italy from 15 to 20 May.

His Nordic engagements reaffirmed India’s growing role in Europe’s strategic landscape, positioning India as a reliable partner in building sustainable, secure, and innovative frameworks for the future. The summit highlighted the convergence of democratic values and economic pragmatism, laying the foundation for a stronger India‑Nordic partnership in the decades ahead.

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PM Modi Invites NORDIC Nations To Invest In India’s Manufacturing, Clean Energy And Innovation Drive

Prime Minister Narendra Modi, addressing the Norway‑India Business and Research Summit in Oslo on 18 May 2026, declared that his government is offering the best opportunities and incentives across key sectors to elevate manufacturing in India to the next level. This was also a message to Nordic countries in general.

He urged Norwegian companies to invest in India, emphasising that the country’s reform agenda and expanding economic base provide unmatched prospects for global investors. Modi highlighted that India’s Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association, implemented in October 2025, is a unique pact centred on talent, technology, and mutual trust.

He explained that the agreement aims to attract $100 billion in investment from EFTA countries over the next fifteen years and create one million jobs, describing these ambitious targets as achievable.

The Prime Minister underlined that India‑Norway ties are not merely a partnership of potential but a proven partnership. He expressed gratitude to Prime Minister Jonas Gahr Støre for hosting the summit and praised the strong foundation of cooperation between business and research communities of both nations.

PM Modi urged global business leaders to expand and deepen their engagement with India, noting that many CEOs have consistently participated in Vibrant Gujarat and other investor summits. He called for accelerating the pace of collaboration and setting higher goals, stressing that the present moment offers a unique opportunity to make bold decisions.

Modi also addressed global challenges, pointing out that food, fuel, and fertiliser security have become pressing issues worldwide. He cited examples of Indo‑Norwegian collaboration, including Orkla’s investment in India’s food sector, Equinor’s supply of LPG and LNG, and Yara’s contribution to fertiliser production.

He said India’s fast‑growing economy, expanding middle class, and clean energy ambitions present major opportunities for Norwegian companies, particularly in nutrition, health, and green energy. He noted that India has set a target of producing 500 gigawatts of clean energy and five million tons of green hydrogen by 2030, inviting Norway to become a key stakeholder in this future, especially given the priority investments of Norway’s Wealth Fund in clean energy.

Outlining India’s reform agenda, Modi stated that guided by the mantra of “Reform, Perform, and Transform,” the government has completely transformed India’s economic DNA over the past twelve years.

He highlighted next‑generation reforms in taxation, labour codes, and governance, alongside efforts to streamline compliance and enhance ease of doing business. He pointed to India’s shipbuilding sector as a shining example of strategic manufacturing, with clusters being developed to create an end‑to‑end ecosystem.

PM Modi noted that nearly 10 per cent of Norway’s ships are already built in India and challenged both sides to raise this figure to 25 per cent within five years. He invited Norwegian companies to leverage India’s policies, stability, and incentives to become major partners in maritime manufacturing, MRO, green shipping, and maritime services.

The Prime Minister further emphasised that India and Norway have elevated their ties to a Green Strategic Partnership, offering Norwegian companies full support in critical sectors such as critical minerals, artificial intelligence, cyber technology, space, and defence.

He highlighted ongoing “Lab‑To‑Lab,” “University‑to‑University,” and “Scientist‑to‑Scientist” partnerships, with India’s CSIR, start-up funds, and Norway’s research institutions actively enhancing cooperation.

PM Modi announced the establishment of a dedicated Trade Facilitation Desk within India’s Invest India initiative specifically for Norway, designed to make investment journeys smoother, faster, and more effective. He concluded by extending a warm invitation to Norwegian businesses to expand their scope and ambitions in India, assuring them of full support and declaring that the ball is now in their court.

This summit not only reinforced India’s strategic outreach to Norway but also positioned the Nordic nation as a vital partner in India’s manufacturing, clean energy, and innovation agenda.

By combining ambitious targets with bold reforms, Modi sought to project India as a global hub for sustainable growth, maritime manufacturing, and technological advancement, while deepening the India‑Norway partnership across economic and research domains.

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India-Europe Relations Enter Golden Age As Norway Commits $100 Billion Investment

Prime Minister Narendra Modi’s landmark visit to Norway has ushered in what he described as a “golden age” of India-Europe relations, with Oslo pledging an unprecedented USD 100 billion investment in India across trade, technology, and clean energy.

This historic announcement coincided with Modi receiving Norway’s highest civilian honour, the Grand Cross of the Royal Norwegian Order of Merit, marking his 32nd international decoration.

During a joint press conference in Oslo with Norwegian Prime Minister Jonas Gahr Støre, Modi emphasised that the world is navigating a period of profound uncertainty. He reiterated India’s position that conflicts in Ukraine and West Asia must be resolved through diplomacy and dialogue, stressing that military confrontation cannot deliver sustainable solutions.

He also called for reforms in international institutions to better address emerging global challenges, reflecting India’s push for a more representative and effective multilateral order.

Norway’s USD 100 billion investment represents a transformative leap in bilateral economic ties, dwarfing the existing trade volume of USD 2.73 billion recorded in 2024. The investment is expected to target sectors such as renewable energy, advanced technology, maritime cooperation, and innovation, aligning with India’s broader green transition agenda.

This builds upon the India-EFTA Trade and Economic Partnership Agreement (TEPA), which came into force in October 2025 after 16 years of negotiations. Under TEPA, the European Free Trade Association — comprising Norway, Switzerland, Iceland, and Liechtenstein — collectively pledged USD 100 billion in foreign direct investment into India over 15 years, with an estimated one million direct jobs to be created. Modi hailed this as a blueprint for shared prosperity and progress.

The visit also elevated bilateral ties to a Green Strategic Partnership, with both leaders formalising agreements in clean energy, digital health, artificial intelligence, space cooperation, and the blue economy.

Thirty business MoUs were signed during a roundtable attended by Modi, Støre, and Crown Prince Haakon, covering areas from high-tech health services to Arctic science collaboration.

An MoU between ISRO and the Norwegian Space Agency was particularly notable, focusing on climate monitoring and Arctic ecosystem protection.

Modi’s arrival in Oslo marked his first visit to Norway and the first bilateral visit by an Indian Prime Minister in 43 years. He was warmly received at the airport by Støre and senior Norwegian leaders, underscoring the significance of the occasion.

In a post on X, Modi expressed confidence that the visit would add vigour to the India-Norway friendship. His itinerary includes meetings with King Harald V and Queen Sonja, as well as bilateral discussions on trade, investment, technology, and innovation.

The timing of the visit is critical, as energy markets face volatility and nations seek stable partnerships. Norway, despite its small size, wields considerable influence due to its vast offshore wealth and strong welfare system.

PM Modi’s engagement with Norway is part of a broader European outreach that includes the India-Nordic Summit in Oslo, where leaders of Denmark, Finland, Iceland, Sweden, and Norway will convene to discuss green hydrogen, Arctic cooperation, defence, and innovation.

This summit builds on earlier meetings in Stockholm (2018) and Copenhagen (2022), further deepening India’s strategic engagement with the Nordic region.

Former diplomat Manjeev Singh Puri has noted that Modi’s Europe outreach strengthens India’s trajectory towards becoming the world’s third-largest economy. The European Union remains one of India’s most important partners, and the deepening of ties with Nordic nations reflects a strategic shift towards multipolarity and multi-alignment. Europe’s evolving approach to Asia, increasingly looking beyond China, positions India as a central player in global economic and technological cooperation.

This visit, therefore, is not only historic in its symbolism but also transformative in its substance. By combining diplomatic outreach, strategic partnerships, and massive investment commitments, Modi has positioned India-Europe relations on a new trajectory that could redefine the global economic and geopolitical landscape.

ANI

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