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By K Raveendran The sharp note of disappointment sounded by Scott Bessent over the India–European Union free trade agreement says less about a single deal and more about a changing geometry of power in the global economy. At one level, Washington’s frustration reflects a familiar concern that sanctions and trade penalties are losing their bite […]

The article India-EU Free Trade Deal Redraws Balance Of Economic Power appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

Speaking during the engagement, Abdulla bin Touq Al Marri, Minister of Economy of the United Arab Emirates, said air traffic between the UAE and India continues to show strong momentum, with around 1,231 direct flights operating each week between cities in both countries. Those services are spread across multiple carriers and hubs, reflecting the depth of commercial, tourism and people-to-people ties that underpin the aviation relationship.

The scale of connectivity has few parallels globally. The UAE serves as a critical transit and destination market for travellers from India, while Indian cities form the largest single source of international passengers for UAE airports. Industry data indicates that traffic has surpassed pre-pandemic benchmarks on several routes, driven by a rebound in business travel, a sustained flow of expatriate workers, and rising leisure demand in both directions.

Officials discussed measures to ensure that bilateral air services arrangements remain responsive to market realities. Capacity management, slot allocation at congested airports, and coordination on safety and security standards featured prominently. There was also a focus on ensuring that regulatory processes keep pace with airline expansion plans, particularly as carriers introduce new wide-body aircraft and add frequencies to secondary cities.

Bin Touq noted that aviation cooperation has spillover benefits for wider economic engagement, supporting tourism, trade in services and cargo connectivity. Air freight was identified as a growing pillar, with belly-hold capacity on passenger aircraft playing an increasing role in moving high-value and time-sensitive goods, including pharmaceuticals, electronics and perishables.

From the Indian side, officials emphasised the importance of predictable access to UAE hubs for carriers as they scale up international operations. India’s airport expansion programme, which has added new terminals and greenfield airports across several states, is expected to unlock further growth in outbound travel. That expansion has altered traffic patterns, enabling more direct international services from tier-two and tier-three cities, many of which already have links to the UAE.

Airlines operating on the corridor include network carriers and low-cost operators, creating a competitive landscape that has helped keep fares in check while expanding choice. The presence of multiple hubs in the UAE has also diversified routing options, strengthening resilience during peak travel periods and operational disruptions.

Beyond capacity, the talks addressed cooperation on sustainability and workforce development. Both sides acknowledged mounting pressure on the aviation sector to curb emissions and improve fuel efficiency. While sustainable aviation fuel remains limited in supply and expensive, officials discussed the importance of policy alignment, pilot projects and knowledge sharing to accelerate adoption over time.

Training and skills were another area of interest, as airlines and airports face shortages of pilots, engineers and air traffic management professionals. Partnerships between training institutions and recognition of certifications were flagged as practical steps to ease bottlenecks without compromising safety standards.

Technology and digitalisation also featured, with attention on passenger processing, biometric systems and data sharing to improve the travel experience. As passenger volumes rise, authorities are seeking to reduce congestion through smarter border controls and interoperable systems that can be scaled across airports.

The civil aviation dialogue sits within a broader economic partnership that has deepened over the past two years, including trade and investment initiatives across manufacturing, energy and digital services. Aviation remains a visible barometer of that relationship, given its sensitivity to economic cycles and consumer confidence.

Ottawa and New Delhi are preparing for a high-level visit in March by Canadian Prime Minister Mark Carney, with negotiations entering an advanced stage on a cluster of agreements covering uranium supply, clean energy cooperation, critical minerals and artificial intelligence. Officials familiar with the talks say the visit is being positioned as a reset in economic engagement after a period of diplomatic strain, with both sides keen to lock in commercially binding deals that reflect shifting global supply chains and technology priorities.

The centrepiece of the expected package is an expansion of civil nuclear cooperation, anchored in long-term uranium supply contracts. Canada is among the world’s largest producers of uranium, while India has been seeking diversified and reliable fuel sources to support its nuclear power programme, which is projected to grow sharply over the next decade. Negotiators have been working to streamline regulatory clearances and pricing mechanisms to give utilities and suppliers greater certainty, while ensuring safeguards and compliance obligations are met.

Energy cooperation is set to extend beyond nuclear. Talks have included collaboration on clean hydrogen, carbon capture and storage, and grid-scale renewable integration. Canadian firms bring experience in cold-climate energy systems, advanced storage and emissions management, while India offers scale, manufacturing depth and ambitious deployment targets. Officials describe the approach as moving from memoranda of understanding towards projects with defined investment timelines and joint development structures.

Critical minerals form another pillar of the discussions. Canada’s reserves of lithium, nickel, cobalt and rare earths are increasingly viewed as strategic assets as governments seek alternatives to concentrated supply routes. India, pushing to build domestic battery and electronics manufacturing capacity, has been exploring offtake agreements, joint exploration and downstream processing partnerships. The proposed framework is designed to align mineral extraction with environmental and community standards, while enabling long-term supply security for manufacturers.

Artificial intelligence cooperation has emerged as a newer, fast-moving track. Policymakers on both sides have been weighing arrangements that combine Canada’s research ecosystem and talent pipeline with India’s large-scale data capabilities and application-driven innovation. Areas under discussion include healthcare diagnostics, climate modelling, financial services and public-sector digital infrastructure. Officials have emphasised the need for guardrails on data governance, intellectual property and ethical use, reflecting growing global scrutiny of AI deployment.

Trade officials say the March visit, if confirmed as planned, would also provide political momentum to broader commercial ties. Bilateral trade has grown steadily over the past decade but remains below potential, particularly in high-value manufacturing and services. Business groups in both countries have been urging clearer pathways for investment approvals, mobility of skilled professionals and dispute resolution mechanisms to reduce friction for companies operating across jurisdictions.

Negotiators from India and the European Union have moved into the final stretch of talks on a long-pending free trade agreement that both sides now describe as a strategic necessity, as uncertainty over United States trade policy reshapes global supply chains and export strategies. Officials involved in the discussions say most market-access chapters are broadly settled, with remaining work focused on sensitive tariff lines, regulatory safeguards and timelines for implementation.

The proposed pact, under negotiation for more than a decade with several pauses, has regained momentum over the past two years as Brussels and New Delhi seek to reduce exposure to external shocks. For the European Union, diversifying trade ties beyond the US and China has become an explicit policy goal. For India, securing preferential access to one of the world’s largest consumer markets offers a counterweight to potential tariff pressures elsewhere.

Trade specialists say the structure of the deal reflects this shared urgency. India is expected to secure phased tariff reductions on a wide range of labour-intensive exports, including textiles, apparel, leather goods, footwear, gems and jewellery, and certain engineering products. These sectors employ millions and are among the most exposed to changes in external demand. Ajay Srivastava, a former trade official, has said that improved access to the EU market would help exporters partly offset the impact of higher duties or restrictive measures imposed by the US on selected product categories.

European manufacturers, in turn, are seeking lower tariffs and clearer rules for automobiles, high-end machinery, wines and spirits, medical devices and chemicals. Current import duties on some of these products remain among the highest faced by EU exporters in major economies. Brussels has also pressed for stronger commitments on intellectual property protection, government procurement and regulatory transparency, areas that have historically slowed progress.

People familiar with the talks say negotiators have narrowed differences on goods tariffs by agreeing to longer transition periods for politically sensitive items, allowing domestic industries time to adjust. Agriculture remains a delicate chapter, with India resisting broad concessions on dairy and certain farm products, while offering limited quotas and safeguards to protect small producers. The EU has signalled flexibility, recognising the social and political weight of agriculture in India’s economy.

Beyond goods, services and investment provisions are central to the pact’s commercial value. India is pushing for easier movement of professionals in information technology, engineering and healthcare, alongside mutual recognition of qualifications. European counterparts are cautious, balancing labour-market concerns with industry demands for skilled talent. Investment protection rules are also under discussion, with both sides aiming to avoid disputes that have characterised earlier bilateral treaties.

Geopolitics has added another layer to the negotiations. Heightened trade frictions involving the US have reinforced the case for dependable partners and rules-based commerce. European policymakers increasingly view India as a key pillar in their Indo-Pacific strategy, while New Delhi sees the EU as a stable market that complements its manufacturing and export ambitions. The alignment is evident in parallel talks on a separate investment protection agreement and a framework for cooperation on sustainable development.

Environmental and labour standards have emerged as important, though contentious, elements. The EU has sought binding commitments linked to climate goals and workers’ rights, consistent with its newer trade agreements. India has pushed back against provisions it views as intrusive or misaligned with domestic development priorities, arguing for cooperation rather than enforcement-driven clauses. Compromise language is being explored to bridge these positions without derailing the broader deal.

Economists note that the scale of potential gains is significant, though uneven across sectors. The EU is already one of India’s largest trading partners, with bilateral goods trade running into tens of billions of euros annually. A comprehensive agreement could lift trade volumes further by lowering costs, improving predictability and encouraging investment flows. Export-oriented clusters in states with strong manufacturing bases are expected to be among the main beneficiaries.

Industry groups on both sides have stepped up engagement, urging negotiators to maintain momentum. Indian exporters highlight the risk of losing market share to competitors that already enjoy preferential access to the EU. European businesses argue that delayed agreement leaves them at a disadvantage in a fast-growing market with rising consumer demand and infrastructure spending.

By Asad Mirza In today’s fractured world, fissures caused mostly by the ongoing Trumpomania, every nation is working post haste to forge new alliances particularly focussed on trade. The best example of this is the India-EU partnership FTA, to be formalized on January 27.. The enhanced partnership is going to eliminate tariffs on more than […]

The article India-EU FTA Gives A Strong Political Message Of Europe To Trump appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

India’s largest information technology services firms together reported a net reduction of close to 3,000 employees in the third quarter of the 2025–26 financial year, underscoring a structural shift in hiring as companies rebalance workforces around artificial intelligence, cloud platforms and higher-value digital engineering.

Quarterly disclosures showed that headcount at several bellwether firms edged lower despite stable deal pipelines. The combined net decline, modest by historical standards, contrasted sharply with the aggressive campus hiring and broad-based workforce expansion that defined the sector for more than a decade. Executives and analysts pointed to a “barbell” pattern in demand, with strong hiring at the high end for niche digital and AI skills and limited intake, or attrition-led pruning, in legacy application maintenance and commoditised services.

At Tata Consultancy Services, the country’s largest IT services exporter by revenue, total employee strength slipped during the quarter as voluntary attrition stayed elevated in certain service lines and fresh hiring remained selective. Infosys also reported a marginal fall in headcount, reflecting a focus on utilisation, internal redeployment and productivity improvements rather than large-scale lateral recruitment. Wipro and HCLTech posted similar trends, with management teams emphasising skill transformation over volume growth.

The net reduction came even as revenue growth stabilised sequentially for most firms, helped by cost optimisation deals, vendor consolidation and demand for cloud migration. Industry executives said the hiring slowdown was not a signal of weakening fundamentals but a recalibration after years of overcapacity built during the post-pandemic surge in digital spending.

What is different this cycle, analysts argue, is the depth of the technology shift reshaping delivery models. Generative AI tools, low-code platforms and automation frameworks are beginning to decouple revenue growth from headcount expansion. Routine coding, testing and support tasks are increasingly automated, reducing the need for large teams, while boosting productivity per employee.

This dynamic has produced the barbell model now widely discussed in boardrooms. On one end, firms are competing fiercely for specialists in data engineering, AI model deployment, cybersecurity, semiconductor design services and advanced cloud architecture. On the other, demand for entry-level roles tied to traditional application development and infrastructure support has softened, leading to fewer campus offers and limited backfilling of exits.

Management commentary during earnings calls reinforced this shift. Several chief executives highlighted large internal reskilling programmes, with tens of thousands of employees undergoing training in AI, machine learning and cloud-native technologies. The emphasis has moved from hiring for scale to building depth in targeted capabilities that command higher billing rates and longer-term client commitments.

Client behaviour has also played a role. Enterprises in North America and Europe, which account for the bulk of export revenues, continue to scrutinise technology budgets amid macroeconomic uncertainty. Discretionary projects have faced delays, while spending has been redirected toward efficiency-led initiatives where automation is central. This has compressed demand for traditional staff-augmentation models that once absorbed large numbers of engineers.

Despite the headline job losses, the sector remains a major employer, with total headcount across the top firms still running into the millions. Analysts caution against interpreting the quarterly decline as a broad-based contraction. Instead, they see a transition phase in which workforce pyramids are being reshaped to align with evolving client needs and delivery economics.

Wage dynamics reflect the same adjustment. Salary hikes have been measured, variable pay has been linked more closely to utilisation and skill relevance, and onsite deployments have been rationalised. At the same time, niche talent continues to command premiums, widening pay dispersion within firms.

By Nantoo Banerjee India’s transport sector, combining road, rail, air and water, is ready for a significant job boom, with the logistics industry alone projected to grow at a 10.7 percent compound annual growth rate (CAGR) through the current year. The national budget for 2026-27, which is scheduled to be placed in Parliament on February […]

The article Union Budget Should Focus On Transport Sector As India’s Most Potential Growth Engine appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

Strong international validation for India’s ambitions in semiconductors and artificial intelligence has emerged during Union minister Ashwini Vaishnaw’s visit to Veldhoven, the Netherlands, where he held discussions centred on advanced manufacturing technologies and long-term collaboration. Vaishnaw described the engagement as a major opportunity to understand cutting-edge systems and align partnerships that could accelerate India’s high-technology ecosystem.

The visit to Veldhoven, home to the world’s most sophisticated chipmaking equipment capabilities, comes at a time when New Delhi is pushing to anchor itself more firmly in global semiconductor supply chains while building domestic capacity. Vaishnaw indicated that interlocutors acknowledged India’s policy direction and scale as compelling factors for deeper cooperation across semiconductors and artificial intelligence, two areas that are increasingly intertwined in next-generation computing and industrial automation.

Discussions during the trip focused on lithography technologies, supply-chain resilience and skills development, according to people familiar with the engagements. India’s pitch rests on a combination of policy incentives, a large engineering workforce and expanding demand from electronics, automotive and data-driven sectors. Officials accompanying the minister underlined that partners in Europe see India as a credible long-term manufacturing and innovation base rather than merely a consumption market.

The Netherlands occupies a critical position in the global chip industry because of its dominance in extreme ultraviolet lithography, a technology essential for producing advanced semiconductors. India’s engagement with Dutch stakeholders is therefore viewed as strategically important, particularly as countries and companies diversify supply chains amid geopolitical and commercial pressures. Vaishnaw’s meetings sought to map pathways for collaboration spanning equipment ecosystems, materials, precision engineering and research linkages.

Artificial intelligence featured prominently in the conversations, reflecting the convergence between advanced chips and AI workloads. Executives and policymakers discussed how specialised processors, high-performance computing and data infrastructure underpin AI deployment across sectors such as healthcare, mobility, energy management and public services. Indian officials emphasised the country’s growing base of AI startups, public digital platforms and applied research, arguing that closer alignment with global technology leaders would strengthen both sides.

The endorsement referenced by Vaishnaw also reflects broader international assessments of India’s semiconductor strategy, which combines fiscal incentives with infrastructure support and regulatory facilitation. Several fabrication and assembly projects have been announced across different states, while partnerships with global firms aim to address gaps in design, packaging and testing. Industry analysts note that execution risks remain, including timelines, talent depth in specialised manufacturing and integration into mature supply networks, yet acknowledge that momentum has improved.

From the Dutch perspective, collaboration with India offers access to a fast-growing market and diversification beyond traditional hubs. European technology firms have been recalibrating their engagement with Asia, balancing commercial interests with strategic considerations. India’s emphasis on trusted partnerships and standards-based cooperation resonates in this context, particularly in areas linked to critical technologies.

Vaishnaw’s visit also included interactions with research institutions and industry representatives to understand best practices in precision manufacturing and workforce training. Officials highlighted the importance of skilling programmes that align academic curricula with industry needs, a factor seen as decisive for sustaining semiconductor operations. India has been expanding such initiatives, including specialised training for chip design and manufacturing processes.

The talks in Veldhoven are part of a broader diplomatic and industrial outreach aimed at positioning India within high-value segments of global technology chains. Previous engagements with partners in East Asia and North America have similarly stressed co-development, supply assurance and innovation partnerships rather than transactional sourcing. The Netherlands visit adds a European dimension to that strategy.

By K Raveendran When the Supreme Court of India struck down the electoral bond scheme introduced under the government led by Narendra Modi, it did so on the realisation that the anonymity offered by the bonds, far from curing the malaise of black money, had institutionalised it. But the alternative of electoral trusts that the […]

The article Supreme Court Alternative To Electoral Bonds Turns Out To Be More Vicious appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

Momentum has gathered through a series of policy signals that place safeguards alongside scale. Draft frameworks circulated by NITI Aayog and implementation roadmaps led by Ministry of Electronics and Information Technology have reinforced principles around responsible data use, model transparency and accountability for outcomes, while stopping short of prescribing one-size-fits-all rules that could chill innovation. Officials involved in consultations say the intent is to embed risk controls early—covering bias, explainability and security—rather than bolting them on after systems are deployed.

Enterprise adoption has followed a similar trajectory. Banks, insurers and large manufacturers are prioritising AI programmes that demonstrate near-term productivity gains and compliance readiness, favouring narrowly scoped applications over open-ended generative tools. Executives interviewed across sectors point to fraud detection, demand forecasting and maintenance optimisation as areas where benefits can be quantified and audited. By contrast, unrestricted text and image generation remains subject to tighter internal review, particularly where customer-facing outputs could expose firms to reputational or regulatory risk.

Scepticism has not slowed investment, but it has reshaped it. Venture funding has tilted towards platforms that promise governance controls by default—model cards, audit trails and data lineage—alongside performance. Start-ups building on foundation models increasingly highlight enterprise-grade safeguards as differentiators, responding to procurement teams that now treat ethics and security as commercial requirements rather than public-relations add-ons. Industry analysts note that this shift mirrors global buyer behaviour, but localised rules on data residency and consent amplify its importance.

Public-sector pilots underscore the same pattern. State administrations experimenting with AI for grievance redressal, traffic management and land records have emphasised human oversight and explainability, often keeping decision authority with officials while using algorithms to triage or recommend. Procurement documents reviewed by this publication show explicit clauses on dataset provenance and bias testing, reflecting lessons from earlier digital programmes where opaque automation triggered legal challenges.

At the national level, interoperability with global standards remains a priority. Engagements with multilateral bodies and peer regulators have sought alignment with emerging norms on risk classification and model evaluation, while retaining flexibility for domestic conditions. Officials argue that a principles-based stance will allow rapid adaptation as technology evolves, avoiding the lock-in that can follow prescriptive rules. Critics, however, warn that voluntary compliance may prove uneven without clear enforcement pathways.

Talent development forms another pillar of the blueprint. Universities and skilling platforms are expanding curricula that combine machine learning with ethics, law and product management, aiming to produce practitioners who can translate policy into code. Industry groups say demand is strongest for professionals able to design systems that pass audits and deliver return on investment, rather than purely experimental research. This has influenced hiring, with firms rewarding cross-disciplinary expertise.

Cloud providers and chipmakers are also recalibrating offerings for a market that prizes trust. Secure enclaves, confidential computing and on-premise deployment options are being pitched to enterprises wary of exposing sensitive data. Partnerships between domestic integrators and global technology companies have focused on localisation—language support, regulatory reporting and sector-specific controls—over raw model size.

UAE and India have elevated their strategic partnership with a sweeping set of agreements signed during the visit of Sheikh Mohamed bin Zayed Al Nahyan, signalling a calibrated push to broaden cooperation across defence, energy, space, trade, investment and food safety. The pacts, endorsed alongside Narendra Modi, reflect a shared intent to anchor bilateral ties in long-term economic and security interests while navigating a volatile global environment.

The visit culminated in the exchange of multiple memoranda of understanding that collectively aim to translate political goodwill into operational outcomes. Officials from both sides framed the agreements as an expansion of the Comprehensive Strategic Partnership, emphasising implementation timelines and institutional coordination rather than aspirational language. At the centre of the package is a defence cooperation framework that strengthens military-to-military engagement, joint exercises, training exchanges and defence industrial collaboration, an area that has gathered momentum as both countries diversify security partnerships.

Energy cooperation featured prominently, with accords spanning hydrocarbons, clean energy and grid resilience. State-linked firms and private players outlined pathways to scale joint investments in upstream oil and gas while accelerating collaboration in renewables, green hydrogen and energy storage. The emphasis on clean energy dovetails with the UAE’s net-zero ambitions and India’s drive to expand non-fossil capacity, positioning both as partners in technology transfer and project financing across third markets.

Space cooperation agreements mark another pillar of the evolving relationship. Space agencies from Abu Dhabi and New Delhi committed to deeper collaboration in satellite development, earth observation, data sharing and human spaceflight training. The arrangements are designed to support applications ranging from climate monitoring and disaster management to urban planning and agriculture, underscoring the commercial and societal dividends of space-based assets.

Trade and investment pacts seek to build on the momentum generated by the Comprehensive Economic Partnership Agreement, which has reshaped tariff structures and supply chains between the two economies. New understandings focus on easing customs procedures, aligning standards and expanding market access for small and medium-sized enterprises. Investment promotion agencies agreed to coordinate sectoral roadmaps in manufacturing, logistics, digital services and infrastructure, with sovereign investors and development funds expected to play a catalytic role.

Food safety and agricultural cooperation agreements address a strategic priority for both governments. Protocols on standards, certification and inspection aim to streamline the movement of agri-food products while safeguarding consumer interests. Joint research initiatives are set to target crop resilience, post-harvest technologies and cold-chain logistics, reflecting lessons from climate stress and supply disruptions that have sharpened the focus on food security.

Diplomatic engagements during the visit also underscored people-to-people ties, education and skills. Universities and research institutions announced partnerships in advanced materials, artificial intelligence and health sciences, while vocational training programmes were aligned to labour market needs in construction, healthcare and digital services. These measures are intended to deepen the talent pipeline that underpins commercial ties.

Officials were careful to situate the agreements within a broader regional and global context. With shipping lanes under strain and commodity markets exposed to geopolitical shocks, both sides highlighted coordination on maritime security and supply chain resilience. The defence and logistics components of the package are expected to reinforce cooperation in the Indian Ocean region, where the UAE’s ports and India’s maritime capabilities intersect.

Economists note that the breadth of the accords reduces concentration risk by spreading cooperation across multiple sectors, while governance mechanisms embedded in the agreements could improve execution. Joint working groups, periodic reviews and dispute-resolution channels were outlined to ensure progress is measurable. Business leaders welcomed the clarity on standards and compliance, arguing that predictability lowers the cost of capital and accelerates project timelines.

Critics caution that delivery will depend on regulatory alignment and the pace of domestic approvals, particularly in capital-intensive sectors such as energy and defence manufacturing. Past initiatives have sometimes faced delays linked to procurement processes and technology transfer rules. Both governments acknowledged these constraints and signalled intent to address bottlenecks through empowered committees.

By Nitya Chakraborty The annual summit of World Economic Forum began in the Alpine hills of Davos in Switzerland on January 19 with the European leaders and the businessmen rattled over the confrontationist approach taken by the U.S. President Donald Trump on Greenland annexation. After imposing 10 per cent tariff on the EU countries taking […]

The article Davos 2026 Delegates Are Panicky As Trump Is Set To Explode His Policy Bomb On January 21 appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

India has overtaken most markets to become the world’s second-largest 5G network by user base, crossing an estimated 400 million subscribers as operators expand coverage and devices become more affordable. The scale of adoption places the country behind only China, underscoring the pace at which fifth-generation services have spread across cities, towns and large rural corridors.

Official tallies compiled from industry disclosures and regulatory filings show nationwide 5G availability across all states and union territories, with more than 450,000 base stations activated since commercial launch in October 2022. Data from the Telecom Regulatory Authority of India indicates that fifth-generation users now account for a substantial share of total mobile broadband connections, a shift that has occurred faster than earlier transitions from 2G to 3G and 4G.

India’s 5G surge reshapes global rankings as operators leveraged aggressive rollouts and introductory pricing to seed usage. The government’s early spectrum auctions, coupled with simplified right-of-way rules for fibre and towers, reduced deployment friction. Policymakers also pushed indigenous manufacturing through production-linked incentives, lowering equipment costs and shortening supply chains.

Market leaders have driven much of the momentum. Reliance Jio built a standalone 5G network using mid-band spectrum and dense fibre backhaul, prioritising urban clusters and industrial zones before pushing into smaller towns. Bharti Airtel opted for a non-standalone architecture initially, upgrading existing 4G sites to accelerate time-to-market while expanding capacity. Vodafone Idea has begun selective launches following capital infusions, focusing on circles with higher data demand.

Subscriber growth has been supported by falling handset prices and a rapid refresh cycle. Entry-level 5G smartphones from domestic and global brands now sit near mass-market price points, while older devices have been phased out as networks refarm spectrum. Analysts note that average data consumption per user has climbed as video streaming, cloud gaming and real-time navigation benefit from lower latency and higher throughput.

Enterprise use cases are also gaining ground. Private 5G deployments are being tested in ports, manufacturing plants and campuses to support automation, predictive maintenance and machine vision. The Department of Telecommunications has approved pilot licences for captive networks, enabling firms to experiment without relying solely on public networks. Healthcare applications such as remote diagnostics and education tools like immersive classrooms are being trialled in partnership with state governments.

The speed of expansion reflects a competitive pricing environment. Unlimited 5G plans bundled with 4G subscriptions reduced barriers to trial, while promotional offers encouraged device upgrades. Industry executives argue that scale efficiencies and declining network costs will support sustainable pricing even as data traffic rises.

Challenges persist. Monetisation remains uneven as consumers expect higher speeds at similar prices, pressuring average revenue per user. Network densification in dense urban areas requires continued capital expenditure, and power availability in remote regions complicates operations. Cybersecurity and data privacy frameworks must keep pace with new applications that rely on ultra-reliable connectivity.

Spectrum policy will shape the next phase. Operators are seeking clarity on millimetre-wave allocations to unlock ultra-high-capacity hotspots for campuses and stadiums. Backhaul capacity, particularly fibreisation of towers, is another bottleneck that policymakers are addressing through coordinated infrastructure planning.

Globally, India’s ascent alters competitive dynamics. Vendors see the market as a proving ground for large-scale deployments, while application developers view it as a launchpad for services that require millions of concurrent users. The country’s experience is being studied by emerging economies looking to leapfrog directly to advanced mobile broadband.

A landmark judicial ruling on the taxation of foreign investments routed through Mauritius has sent ripples across global financial markets, unsettling investors who have long relied on the island nation as a preferred gateway into India. The decision, delivered by the Supreme Court of India, upholds the government’s right to tax certain capital gains arising from indirect transfers and treaty-based structures, reinforcing a tougher stance on what authorities describe as aggressive tax planning.

India’s decisive stand on Mauritius-linked investments has revived debate over the balance between sovereign tax powers and investor certainty. Government data underline the scale of what is at stake. Over the 23 years leading up to 2023, cumulative foreign direct investment routed from Mauritius amounted to about $171 billion, making it the single largest source of inflows. For decades, the India–Mauritius Double Taxation Avoidance Agreement enabled investors to claim capital gains tax exemptions, helping fuel equity investment, private equity deals and strategic acquisitions.

The court’s ruling addresses disputes that intensified after New Delhi amended tax laws and renegotiated treaties to curb what it saw as treaty abuse. While the revised tax treaty signed in 2016 had already limited exemptions for new investments, the judgment clarifies that authorities may scrutinise older structures if they lack commercial substance. Tax officials argue the decision closes loopholes without violating treaty commitments, while investors warn it introduces uncertainty for legacy holdings.

Officials from the finance ministry maintain that the ruling aligns with international norms promoted by the Organisation for Economic Co-operation and Development, particularly the Base Erosion and Profit Shifting framework. They stress that genuine investors with demonstrable economic substance in Mauritius have little to fear. However, fund managers say the practical test will lie in how tax authorities interpret “substance” and whether retrospective demands emerge through reassessments.

Market reaction has been cautious. Legal advisers report a spike in queries from foreign portfolio investors and multinational corporations reassessing exposure to India-linked assets held through Mauritius vehicles. Some funds have begun exploring alternative jurisdictions such as Singapore or the Netherlands, though treaty benefits in those routes have also narrowed over time. The broader concern is not a single treaty, but a pattern of assertive tax enforcement that could complicate exit planning.

Mauritius itself faces strategic implications. The island has worked to reposition its financial sector beyond treaty advantages, emphasising regulatory credibility, compliance standards and links to African markets. Authorities in Port Louis have reiterated that the country remains committed to transparency and cooperation, noting that the revised treaty framework already reflects shared objectives with New Delhi.

Economists note that India’s investment landscape has changed markedly since the era when Mauritius structures dominated. Domestic capital markets are deeper, startup funding has diversified, and manufacturing-linked incentives are attracting strategic investors less dependent on tax arbitrage. Even so, foreign capital remains critical for sectors such as infrastructure, renewable energy and technology, making predictability in tax policy a sensitive issue.

Corporate leaders caution that while sovereign governments have the right to protect revenues, abrupt shifts can affect perceptions of stability. Several high-profile disputes in the past decade, including cases involving telecom and energy companies, continue to shape investor memory. The latest ruling, they say, reinforces the need for clear administrative guidance to avoid prolonged litigation.

From the government’s perspective, the judgment strengthens its hand in ongoing tax assessments and signals continuity in policy direction. Officials argue that aligning domestic law with treaty intent ultimately supports fair competition and long-term growth. They also point to dispute resolution mechanisms and advance rulings as safeguards for investors seeking clarity.

By Ashok Nilakantan Ayers When India’s finance minister Ms Nirmala Sitharaman rises to present the 7th Union Budget on February 1, a record of sorts, the moment will carry an uncommon weight. This is no routine fiscal exercise, no mere balancing of columns and commas. Instead, the budget is being cast — by industry leaders, […]

The article 2026-27 Budget Offers Modi Govt A Great Opportunity To Reshape Strategy appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

Government authorities are moving to compel smartphone manufacturers to submit portions of their operating system source code for mandatory security audits, escalating a standoff with global technology companies that warn such a requirement could undermine intellectual property protections and user privacy. The proposal, under discussion within policy circles in New Delhi, reflects mounting concern about cyber intrusions, supply-chain vulnerabilities and the growing role of mobile devices in payments, governance and national security.

Officials familiar with the matter say the plan would require vendors selling smartphones in the country to make critical software components available for inspection by government-approved laboratories. The focus would be on core operating system layers, firmware and security modules rather than consumer-facing applications. Proponents argue that access to code is essential to verify whether hidden vulnerabilities, backdoors or insecure update mechanisms could be exploited by hostile actors.

The push has brought the government into direct tension with companies such as Apple and Samsung, whose devices dominate the premium and mass-market segments. Executives and industry representatives have privately conveyed resistance, arguing that exposing proprietary code, even to auditors bound by confidentiality, creates unacceptable risks of leaks and reverse engineering. They also contend that global platforms already undergo extensive third-party security testing and comply with international standards.

At the heart of the debate is whether national security imperatives justify a departure from prevailing global norms. Countries including China and Russia operate regimes that allow state scrutiny of technology products, though often under opaque processes that foreign firms say are difficult to reconcile with commercial safeguards. Western regulators have largely relied on certification frameworks, vulnerability disclosure programmes and cooperation with vendors rather than direct access to source code. India’s approach, if formalised, would place it closer to the former camp, potentially setting a precedent for other large emerging markets.

Government officials counter that smartphones have become gateways to sensitive data far beyond personal communications. Devices are routinely used for digital identity verification, financial transactions and access to public services. Any systemic weakness could have cascading effects. They also point to a rise in sophisticated cyber operations attributed by security researchers to state-linked groups, arguing that reliance on vendor assurances is no longer sufficient.

The proposal is understood to be steered by the Ministry of Electronics and Information Technology, which has expanded its remit in cybersecurity and digital governance. Policy discussions have examined models ranging from escrow-based code access, where source material is held by a trusted intermediary, to controlled on-site inspections without code being copied. Each option presents trade-offs between assurance and exposure.

Industry bodies warn that mandatory disclosure could chill investment and complicate product launches. Smartphone operating systems are developed on global codebases, updated frequently and protected by layers of licensing agreements with component suppliers. Altering that structure for a single market risks fragmenting development and delaying security patches. There are also concerns about reciprocity: once one jurisdiction demands code access, others may follow, multiplying compliance burdens.

Privacy advocates occupy an ambivalent position. Some support deeper scrutiny to ensure devices do not surreptitiously collect or transmit data. Others caution that state access to low-level software could itself become a vector for abuse if oversight is weak. They stress the need for transparent audit criteria, independent supervision and clear limits on how findings are used.

The commercial stakes are significant. India is one of the world’s largest smartphone markets by volume and a critical manufacturing hub under production-linked incentive schemes. Companies have invested heavily in assembly plants and local supply chains, betting on policy stability. A protracted dispute over code access could influence decisions on future capacity and research investment, even if an outright exit is unlikely.

By Nitya Chakraborty U.S. commerce secretary Howard Lutnick’s stunning podcast on Thursday claiming that the bilateral India-US trade deal was almost ready but was not signed as Prime Minister did not call the U.S. President Donald Trump as was expected by the Americans. This lack of proper gesture on the part of the Indian PM […]

The article Modi Mustn’t Rush To Appease Trump On Trade Deal, Explore Options appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

By Nitya Chakraborty India’s isolation from Global South on the issue of Trump’s invasion of Venezuela is now complete. Prime Minister Narendra Modi claims himself as the leader of Global South. Both at the SCO summit and BRICS meeting last year, Modi was active in articulating the aspirations and the programmes of the developing and […]

The article Narendra Modi Has Lost His Moral Right To Lead 2026 BRICS Presidency appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

Plans to turn India into a major semiconductor manufacturing hub are moving from policy to execution, with four companies scheduled to begin chip production during 2026 and the government setting its sights on becoming one of the world’s leading producers by 2035. The transition marks a decisive phase for a country long dependent on imported chips but now seeking to embed itself in global electronics supply chains amid geopolitical realignments and rising demand for secure manufacturing bases.

The most advanced of the announced projects is the large-scale fabrication facility planned at Dholera in Gujarat, a joint venture between Tata Electronics and Taiwan’s Powerchip Semiconductor Manufacturing Corporation. The plant, cleared with government backing and financial incentives under the Semiconductor Mission, is designed to manufacture mature-node chips used in automobiles, power electronics, consumer devices and industrial equipment. Construction work has progressed through 2025, with commercial production targeted to start the following year, according to timelines shared with policymakers and industry partners.

Alongside the Dholera fab, three other facilities are slated to commence output in 2026, primarily in the assembly, testing, marking and packaging segment. Micron Technology’s ATMP plant at Sanand in Gujarat is expected to be the first major operational unit, focusing on memory products for global markets. Two domestic groups, Tata Electronics and Kaynes Semicon, are also developing advanced packaging facilities, while CG Power, in partnership with Japan’s Renesas Electronics and Thailand’s Stars Microelectronics, is setting up an outsourced semiconductor assembly and test unit in Gujarat. Together, these projects are intended to establish a foundational ecosystem rather than a single flagship plant.

Government officials argue that the emphasis on both fabrication and packaging reflects a deliberate strategy. While advanced-node fabs require decades of experience and heavy capital, mature-node manufacturing and packaging are seen as realistic entry points that align with India’s strengths in engineering talent, scale and cost efficiency. Officials involved in the programme say the objective is to capture value across the semiconductor chain while gradually building capabilities for more complex processes.

Public funding has played a central role. Under the incentive framework, the central government is offering support covering up to half the project cost for approved semiconductor and display manufacturing units, with additional incentives from host states. The total committed investment across approved projects runs into tens of billions of dollars, according to official estimates, making it one of the most capital-intensive industrial initiatives undertaken in the country.

Industry analysts note that the timing coincides with a global rethinking of chip supply chains. Disruptions during the pandemic years, coupled with trade and technology tensions, prompted governments and companies to seek diversified manufacturing locations. India’s pitch combines policy stability, a large domestic electronics market and strategic partnerships with established chipmakers. Executives at electronics firms say the presence of local chip production could shorten supply chains and reduce vulnerability to external shocks.

Challenges remain substantial. Semiconductor manufacturing demands ultra-reliable power, water and logistics, as well as a deep supplier base for chemicals, gases and equipment. Skills development is another constraint. While India produces large numbers of engineers, chip fabrication requires specialised expertise built through years of hands-on experience. To address this, training collaborations with overseas partners and academic institutions have been initiated, and several universities have launched semiconductor-focused programmes.

There is also scepticism about the 2035 ambition. Market researchers point out that becoming a “top” producer can be defined in different ways, whether by volume, value or technological sophistication. Countries such as Taiwan, South Korea and the United States dominate advanced-node manufacturing, while China has invested heavily across the value chain. India’s near-term projects focus on mature technologies, which serve vast markets but command lower margins. Supporters counter that demand for such chips is set to remain strong due to electric vehicles, renewable energy systems and industrial automation.

By Prabhat Patnaik The BJP-led government has just got parliament to pass a legislation permitting up to 100 percent foreign equity-ownership in India’s insurance sector. This, the Prime Minister has announced, marks the beginning of a major “reform” in India’s financial sector, towards presumably much greater private, including foreign, ownership of financial institutions. This would […]

The article Pushing The Financial System Towards A Dangerous Direction appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

By K Raveendran As Indian corporates step into the new year buoyed by stronger growth momentum and easing inflationary pressures, a sense of anticipation is spreading across boardrooms and policy circles alike over a dispute that dwarfs most corporate battles seen in the country’s history. At the heart of this confrontation lies the Indian government’s […]

The article Sensation Building Up Around Country’s Biggest Ever Arbitration Award appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).