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The latest response includes curbs on bulk diesel purchases at retail outlets, a willingness to let the fiscal deficit widen beyond the Budget target, and measures to pull in overseas capital as policymakers try to contain pressure on inflation, subsidies and the balance of payments. The measures mark a sharp shift from the calmer macroeconomic backdrop at the start of the financial year, when lower inflation and steady growth had given authorities room to focus on consolidation.

Retail fuel outlets run by public sector oil marketing companies have been told to cap high-speed diesel sales at 200 litres per customer or vehicle per day. The restriction, planned for up to 90 days, is aimed at preventing hoarding and stopping commercial users from shifting large purchases to retail pumps, where prices are lower than bulk supply rates. Diesel bought from retail outlets cannot be resold, and dealers have been asked to ensure that sales go directly into vehicle tanks or approved containers.

The decision followed a surge in purchases from retail pumps after the conflict in West Asia widened the gap between retail and bulk diesel prices. Trucking firms, contractors and other commercial users have sought cheaper supplies, adding pressure on state-run fuel retailers that already carry most of the retail burden. Diesel accounts for a large share of transport and farm fuel demand, making any disruption politically sensitive as the kharif sowing season approaches.

The fiscal impact is becoming harder to ignore. The Budget had set the fiscal deficit target for 2026-27 at 4.3% of gross domestic product, after 4.4% in the revised estimate for 2025-26. Officials are now prepared to tolerate a higher deficit, potentially around 4.8% of GDP, if subsidy costs and energy-related spending rise further. Fertiliser subsidies are also expected to climb as global input costs move up, while fuel-related tax and pricing decisions could reduce revenue flexibility.

Spending cuts across ministries are being examined, though the Centre is likely to avoid sharp reductions in capital expenditure unless market conditions deteriorate further. Infrastructure spending has been one of the main pillars of growth in the past few years, and cutting it too deeply would risk weakening private investment at a time when companies are already facing higher transport and raw material costs.

The rupee has become the other pressure point. It strengthened on Friday after Brent crude fell below $90 a barrel on hopes of a diplomatic breakthrough, but the currency remains vulnerable to oil spikes because India depends heavily on imported crude. The Reserve Bank of India has introduced measures to attract dollar inflows, including support for foreign currency deposits and lower-cost hedging routes for overseas borrowing by state-run companies. Large lenders are preparing dollar bond issues, and banks expect a stronger push to tap non-resident deposits over the coming months.

Inflation has also started to reflect the shock. Retail inflation rose to 3.93% in May from 3.48% in April, with food and fuel costs moving higher. The reading remains close to the central bank’s 4% target, but the risk is that higher diesel prices feed into freight, farm operations and food distribution. Any weak monsoon spell linked to El Niño conditions would add another layer of pressure.

By Dr. Nilanjan Banik The Indian economy, to quote from Charles Dickens’ novel, looks like A Tale of Two Cities. Recent estimates suggest India’s real GDP expanded by 7.8%, with strong growth noted across sectors: services (9.3%), manufacturing (10.7%), and construction (7.4%). Consumption expenditure, which is the largest component of GDP explaining 58% of GDP, […]

The article Big Indian Corporates Are Not Investing Despite Series Of Govt Incentives appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

By K Raveendran Resolution of the US-Israel war with Iran now appears further away than at any point in the conflict, with the latest American strikes pushing global markets into a more unsettled phase. The US launch of retaliatory attacks on Iranian defence and radar systems after Washington accused Tehran of responsibility for the downing […]

The article India’s Fiscal Shield Comes Into Focus As Hormuz Crisis Darkens Outlook appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

The order, received on June 8 from CC7 Emirates Engineering Solutions L. L. C., covers design, engineering, manufacture, procurement and supply on a Free Carrier basis. JNK India will also provide assistance, charged on a per diem basis, for erection, commissioning and witnessing of performance tests at the ADNOC-linked project in Abu Dhabi.

The contract has been classified by the company as a “large” order, a category it defines as being worth between ₹100 crore and ₹300 crore. While the exact contract value has not been disclosed, the award is material for a specialised engineering business operating in a segment where project references, technical qualification and delivery record strongly influence future bidding opportunities.

The Abu Dhabi project forms part of the wider TA’ZIZ industrial chemicals ecosystem at Ruwais, a major downstream expansion intended to support local production of chemicals used in construction, infrastructure, packaging, healthcare and other sectors. The Salt Project has drawn international engineering and procurement interest because of its scale and its place in the UAE’s push to deepen industrial supply chains beyond crude production.

JNK India specialises in process-fired heaters, reformers, cracking furnaces and other thermal engineering systems used in refineries, petrochemicals, fertilisers, hydrogen, methanol, steel and broader process industries. The latest award places its waste gas handling portfolio in sharper focus, particularly flares and incinerators, where industrial clients are investing to meet tighter environmental, emissions and process-safety standards.

Arvind Kamath, chairperson and whole-time director of JNK India, said the award marked an encouraging start to FY27 and reinforced the company’s ability to compete in international markets. He said the order reflected its engineering capability, manufacturing strength and execution record in complex industrial solutions, while also strengthening its presence in the waste gas handling segment.

The mandate is significant because incinerator packages are not commodity supplies. They require detailed thermal design, material selection, safety compliance and integration with broader plant systems. Performance testing is also critical, as waste gas handling equipment must function reliably under varied operating conditions and meet the technical specifications set by the main contractor and project owner.

CC7 Emirates Engineering Solutions is linked to the wider CC7 engineering group, which has been active in large chemical and industrial projects. Its role in the TA’ZIZ Salt Project gives JNK India access to a major Gulf industrial platform at a time when the region is expanding petrochemical, hydrogen, low-carbon ammonia and specialty chemicals capacity.

For JNK India, the Abu Dhabi order continues a strategic shift from a largely domestic heating-equipment business to a broader engineered-systems provider with export opportunities. The company’s capabilities include thermal designing, engineering, manufacturing, supply, installation and commissioning, with a fabrication facility at Mundra in Gujarat spread across about 20,000 square metres. The location gives it logistical access to a deep-draft port, an advantage for large export equipment.

The company has also expanded beyond conventional fired heaters into flares, incinerators, hydrogen production and distribution systems, process plants and emerging energy-transition applications. Its partnership with South Korea’s JNK Global adds technical depth in industrial combustion equipment, while a venture with Chemdist Group founders gives it exposure to green hydrogen, sustainable fuels, chemicals and carbon capture systems.

The order comes as Gulf energy producers and industrial developers are accelerating investment in downstream diversification. Abu Dhabi’s strategy has placed petrochemicals and industrial chemicals at the centre of its non-oil manufacturing ambitions, with Ruwais positioned as a key hub. This is creating opportunities for specialised suppliers that can meet demanding global project specifications while managing cost and delivery schedules.

Customs figures showed a sharp rise in outbound shipments of unwrought aluminium and aluminium products, extending the strong performance seen in April, when exports reached 598,000 metric tonnes. The increase underlined China’s role as the main buffer for a global market unsettled by production cuts, shipping delays and higher insurance costs linked to the conflict around the Gulf and the Strait of Hormuz.

The aluminium surge came as China’s wider trade machine gathered pace. Total exports rose 19.4 per cent from a year earlier in May, beating forecasts and widening the trade surplus to more than $105 billion. Imports also grew 27.4 per cent, but the headline gain masked a sharp fall in crude purchases, with volumes down about 29 per cent as refiners leaned more heavily on inventories and cut some buying amid elevated freight and geopolitical risks.

Aluminium has become one of the clearest channels through which the Middle East war is reshaping industrial supply chains. Producers in Gulf states account for a meaningful share of non-Chinese primary aluminium supply, and disruption to power-intensive smelting, port activity and shipping routes has tightened availability for consumers in Europe, Asia and North America. Prices in London climbed to a four-year high this month as traders priced in the risk of prolonged supply constraints.

Chinese exporters have benefited from the opening. Producers and traders have increased shipments of semi-finished products and other aluminium categories where overseas premiums have risen faster than domestic prices. The price gap has improved margins for exporters, even as Beijing continues to manage capacity growth in a sector long associated with heavy energy use and emissions.

The market shift is particularly important for manufacturers in transport, construction, packaging, power infrastructure and renewable energy. Aluminium is widely used in electric vehicles, aircraft parts, solar frames, building systems and high-voltage transmission equipment. A sustained shortage outside China could raise input costs for industries already dealing with expensive financing, disrupted shipping schedules and volatile energy markets.

China’s advantage rests on scale. The country dominates global aluminium production and has built deep processing capacity across provinces such as Shandong, Henan, Guangxi and Yunnan. Its producers can move quickly when export margins improve, though output remains constrained by power costs, environmental controls and the national ceiling on smelting capacity.

The export rise also carries political sensitivity. Western governments have long argued that China’s industrial policies create excess capacity and depress global prices. A fresh wave of metal exports, even if driven by war-related shortages, could sharpen trade friction at a time when the United States, Europe and other economies are expanding scrutiny of Chinese goods in sectors ranging from steel and batteries to solar components and electric vehicles.

Crude oil tells a different story. China remains the world’s largest crude importer, but May’s decline showed how refiners are adjusting to uncertainty in Gulf shipping. The Middle East supplied a large share of China’s crude last year, with Saudi Arabia, Iraq, the United Arab Emirates, Oman, Kuwait and Qatar among key reported suppliers, while Iranian barrels have continued to reach Chinese buyers through opaque trading channels.

Refiners have drawn on commercial and strategic inventories built during earlier periods of lower prices and heavy discounted buying. Weak domestic fuel margins have also reduced the incentive to import aggressively. Independent refiners in Shandong and state-run plants have faced pressure from high crude costs, capped fuel prices and softer demand growth as electric vehicles erode petrol consumption.

The fall in crude imports may help ease immediate pressure on global oil markets, but it also reflects the vulnerability of China’s energy security to maritime disruption. The Strait of Hormuz remains central to crude and liquefied natural gas flows, and any prolonged interruption would force Beijing to rely more on stockpiles, pipeline supplies from Russia and Central Asia, and alternative seaborne routes.

For commodity markets, May’s trade data showed a split picture. Metals exports are expanding where China can monetise overseas shortages, while energy imports are being managed more cautiously to reduce exposure to war-driven price spikes. Copper imports slipped from April, suggesting that parts of the manufacturing supply chain remain uneven despite the strong headline export performance.

The hiring programme would expand the workforce of One 97 Communications, Paytm’s parent, by about 10 per cent from a base of roughly 40,000 employees. The company is also expected to reduce about 1 per cent of its staff, or nearly 400 employees, as it removes overlapping functions and redirects resources towards areas tied to revenue growth, automation and financial services distribution.

The planned additions will run through March 2027 and cover product, technology, artificial intelligence and senior leadership roles. Paytm has already added more than 800 employees over the past two months and is in the process of recruiting the next tranche as it widens its merchant network and builds AI-led tools across its platform.

The move reflects a broader recalibration inside the Noida-based fintech company after two years of regulatory pressure, cost discipline and business restructuring. Paytm is seeking to convert its large base of users and merchants into higher-value customers for loans, investments, insurance and other financial products, while keeping a tight watch on employee costs and operating expenses.

Chief Executive Officer Vijay Shekhar Sharma has been working to rebuild confidence after the Reserve Bank of India imposed severe restrictions on Paytm Payments Bank in 2024 and later cancelled the licence of the independently held affiliate in April 2026. One 97 Communications holds 49 per cent in the payments bank, while Sharma owns the remaining 51 per cent.

The banking affiliate’s closure has continued to shape staffing decisions. Most of Paytm Payments Bank’s employees have already exited over the past two years, with some absorbed into other parts of the fintech group. The remaining few hundred employees at the bank are expected to leave as the winding-down process advances.

Paytm’s latest hiring plan comes after a year in which the company sharply reduced headcount. Average on-roll employees fell from 43,960 in FY24 to 39,368 in FY25, a decline of about 4,600 people. A large portion of the workforce remains tied to sales, underlining the importance of merchant acquisition and field distribution in Paytm’s model.

The company’s restructuring has coincided with an improvement in profitability. Paytm posted four consecutive profitable quarters and reported its first full-year profit since listing, with FY26 net profit of about ₹552 crore compared with a loss of ₹663 crore in FY25. Revenue for FY26 rose to about ₹9,291 crore from ₹7,625 crore a year earlier.

For the March 2026 quarter, One 97 Communications reported a consolidated net profit of about ₹184 crore, compared with a loss of about ₹540 crore in the year-earlier period. Revenue from operations rose 18.4 per cent year-on-year to ₹2,264 crore, supported by payments services and financial services distribution.

The improved performance has given Paytm more room to invest in growth areas, but the company is still balancing expansion with caution. Its shares have gained around 7 per cent over the past year, though they remain more than 50 per cent below the 2021 initial public offering price, a reminder of investor concerns over profitability, regulation and the durability of its business model.

Artificial intelligence has become central to Paytm’s operating strategy. The company has used automation to reduce repetitive work in customer support, risk management, merchant servicing and internal processes. The next phase appears focused less on replacing headcount across the board and more on redeploying resources towards AI-enabled products, data-driven lending, fraud control and personalised financial offerings.

That shift mirrors a wider trend in the technology and fintech sectors, where companies are cutting roles in legacy or routine functions while hiring for engineering, machine learning, product design, compliance technology and platform operations. For Paytm, the challenge is sharper because its business relies on both software capability and a large physical merchant network.

The company began in 2010 as a mobile recharge platform before expanding into wallets, QR-code payments, Soundbox devices, payment gateways and financial services. Its growth accelerated after the 2016 currency note withdrawal pushed millions of merchants and consumers towards digital payments.