AAPI: Newsletter, January 2026

DELHI, January 2026

Index of this Newsletter

INDIA

INDIA & THE WORLD

21. From BRICS to Quad: India to host series of global summits in 2026
22. 100% FDI in Indian Insurance: Transforming Financial Security and Global Capital Influx
23. Adani partners with Brazil's Embraer to make regional jets in India for first time: Report
24. ‘In a Fragmenting World, India Backs Rules-based Global Economic System’
25. EU clears path for landmark Mercosur trade deal amid mounting farmer protests across Europe

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DELHI, January 2026

NEWSLETTER, January 2026

INDIA

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

1. The Unacceptable Rise of Inequality: A Global Crisis

ET Gov. 12 Jan. 2026

Inequality has long been an intrinsic feature of economic transition, but its sharp intensification in recent decades has assumed serious proportions. The benefits of economic growth have been distributed increasingly unevenly across nations and within societies, widening the gap between the privileged and the deprived.

This divergence is neither an inevitable by-product of growth nor a natural economic outcome; it is, instead, the result of deliberate political and institutional choices.

The World Inequality Report 2026 offers a comprehensive examination of this phenomenon across multiple domains—income, wealth, gender, international finance, climate responsibility, taxation, and political power—revealing how inequalities reinforce one another and are reshaping the global geopolitical landscape. At the same time, the report underscores that inequality is not irreversible.

Redistributive transfers, progressive taxation, investment in human capital, and stronger labour protections have demonstrably reduced inequality in certain regions. Even modest forms of wealth taxation on the super-rich could finance essential public goods such as health, education, and climate adaptation. Reducing inequality beyond its tolerable threshold is therefore not merely a moral imperative but a prerequisite for economic resilience and stable governance.

A stark illustration of contemporary inequality lies in the income divide between the top ten per cent of earners and the remaining ninety percent. Wealth inequality is even more pronounced. Globally, the top ten percent of the population control nearly three-quarters of total wealth, while the bottom half owns a mere two percent.

The concentration becomes extreme at the very top: the wealthiest 0.001% possess roughly sixty thousand times more wealth than half of humanity combined. This concentration is not only persistent but accelerating, posing serious risks to economic sustainability. Given current income growth trajectories for the rich and the poor, convergence remains firmly out of reach.

While the top ten per cent earn about 53 percent of global income and hold 75% of global wealth, the bottom fifty per cent receive only 8 percent of income and own just 2% of wealth, highlighting that the wealth divide far exceeds the income divide.

Beyond income and wealth, inequality also shapes exposure to and responsibility for the climate crisis. Although climate change is a collective challenge, its causes and consequences are deeply unequal. The poorest half of the global population accounts for only about 3% of carbon emissions linked to private capital, whereas the richest ten percent are responsible for approximately 77% of such emissions.

Strikingly, the wealthiest one per cent alone contributes around 41% of emissions associated with private capital. This imbalance underscores a profound injustice: those most responsible for environmental degradation are also the least vulnerable to its adverse effects, while those least responsible bear the heaviest burdens.

Gender inequality constitutes another critical dimension of income disparity. Globally, women receive slightly more than a quarter of total labour income despite working, on average, longer hours than men. Regional variations persist, with Africa, South Asia, and Sub-Saharan Africa exhibiting the widest gender gaps, while Europe, North America, and Central Asia perform relatively better, where women account for around 40% of labour income.

On average, men work 43 hours per week, compared to women’s 53 hours, yet women’s hourly earnings remain only 61% of men’s. When unpaid work is factored in, women’s total income still falls short of men’s by about 32%. These disparities are not merely issues of fairness; they reflect deep structural inefficiencies that undermine overall economic productivity and growth.

Global income disparities are also sharply delineated across regions. North America and Europe dominate the high-income tier, followed by middle-income regions such as Russia, the Middle East, East and Central Asia, and North Africa. Latin America, Southeast Asia, and Sub-Saharan Africa remain among the poorest regions.

On average, per capita income in North America is thirteen times higher than in Sub-Saharan Africa and nearly three times the global average. Importantly, this inter-regional divide does not negate significant intra-regional inequality, as the gap between the top ten percent and the bottom half of the population persists across nearly all regions.

The persistence and escalation of inequality inevitably raise questions about the efficacy of public policy. Evidence indicates that well-designed and consistently implemented progressive taxation and redistributive transfers can meaningfully reduce inequality. Tax and transfer systems in Europe and North America have shown relative effectiveness, while redistributive policies have helped narrow income gaps in parts of Latin America.

However, progressive taxation often fails to meaningfully affect the ultra-wealthy. Millionaires and billionaires tend to pay proportionally less in taxes than the middle class, constraining the state’s capacity to invest adequately in education, healthcare, and climate action. Addressing this imbalance requires a dual strategy: robust redistributive measures alongside income security and protection mechanisms that discourage excessive wealth accumulation.

India presents a particularly stark case of rising inequality. Recent data indicate that the top ten percent of the population captures approximately 58% of national income, while the bottom fifty percent receives only about 15%. Wealth inequality is even more severe, with the richest ten percent holding nearly 65% of total wealth and the top one percent alone owning around 40%.

Although the bottom half’s share of wealth has remained broadly stable, this offers limited consolation in the face of growing concentration at the top. Compounding these challenges is the stagnation of female labour force participation, which, if improved, could significantly narrow gender-based income disparities.

Attention to inequality, therefore, must extend beyond idealistic or ethical considerations. At its core, inequality is a question of sustainability—economic, social, and political. Left unaddressed, it threatens long-term growth, undermines social cohesion, and weakens the foundations of democratic governance.

(The author is Professor, International Institute for Population Science; Views expressed are personal)

2. India Maternal Mortality Rate: India's Maternal Mortality Rate Sees Significant Drop Thanks to Rise in Institutional Deliveries

ETGov. 24 Dec. 2025

The MMR measures deaths from pregnancy/childbirth complications per 100,000 live births, indicating maternal health.

Union Health Minister JP Nadda on Tuesday said the institutional delivery rate in the country has increased to 89 per cent, which led to a significant reduction in the maternal mortality rate during childbirth.

He said the Narendra Modi government is striving through healthcare services to ensure that citizens do not fall ill in the first place, adding that measures have been taken to prevent diseases.

"The rate of institutional deliveries in the country has increased to 89 per cent, which led to a significant reduction in the Maternal Mortality Rate (MMR)," Nadda said while addressing a function after laying the foundation stone for medical colleges in Dhar and Betul districts, which will be operated on a public-private partnership (PPP) model.

The MMR measures deaths from pregnancy/childbirth complications per 100,000 live births, indicating maternal health.

"The Narendra Modi government is striving through its healthcare services to ensure that citizens remain healthy and do not fall ill in the first place," the health minister added.

The two medical colleges in Dhar and Betul will be constructed at an estimated cost of Rs 260 crore and Rs 300 crore, respectively, an official said.

Nadda said the upcoming medical colleges will be the first-of-kind in the country to operate on a PPP model, ensuring access to doctors in every village.

He said 11 years ago, India was considered one of the 'fragile five' economies, but has now become the world's fourth-largest economy.

Highlighting achievements of the Modi government in the health sector, Nadda said that in 2014, the country had 387 medical colleges and 51,000 MBBS seats. "The number is increased to 819 medical colleges and 129,000 MBBS seats as of today".

He said PM Modi has set a target to increase the number of MBBS seats to 75,000 before 2030.

The foundation stone for medical colleges in Katni and Panna will also be laid next month, he said, adding that the number of medical colleges in Madhya Pradesh will increase from the current 33 to more than 50 in the coming years.

Nadda hailed the Mohan Yadav government in Madhya Pradesh for launching an air ambulance service in the state.

He highlighted India's performance on the economic front under Prime Minister Narendra Modi's leadership.

"Eleven years ago, India was counted among the 'fragile five' economies, but under the leadership of PM Modi, we have become the world's fourth-largest economy. Very soon, we are going to become the world's third-largest economy," Nadda said.

The International Monetary Fund says that the pace of development is slow worldwide, but India stands tall. The World Bank describes India's economic policy as a shining ray of hope, he added.

The BJP president accused the Congress of neglecting the development of the tribal region in MP.

"Our tribal brothers and sisters have supported the Congress for a long time, but has this party done anything to bring about a change in the lives of this community?" he asked.

Dhar and Betul districts fall in the tribal belt once dominated by the Congress.

Nadda's visit to Madhya Pradesh comes days after the Mohan Yadav government completed two years in office on December 13.

"We believe in a culture of accountability, and we say with conviction that we have delivered on what we promised, and even done things that we didn't promise. We are in politics with a spirit of service and not to indulge in power," Nadda added.

Addressing the programme, CM Yadav said MP had only five medical colleges till 2002-03. "Their number is increased to 33 now," he added.

Six government-run medical colleges have become operational in MP in the last two years, including in tribal areas of Singrauli and Sheopur, Yadav said.

He said the state government has sanctioned 354 posts for senior resident doctors.

Yadav informed that more than 12.5 million people have been screened as part of the sickle cell anaemia campaign in MP.

Highlighting various measures taken by the state government to ramp up health infrastructure, Yadav said hospitals in Tikamgarh, Neemuch, Singrauli, Sheopur, and Dindori are being upgraded with 800 beds, and 810 new posts for doctors are being sanctioned.

Responding to the popular demand to rename Multai town in Betul district, the chief minister announced that it will be known as Mooltapi.

"Whenever we receive a proposal, we will forward it to the Centre for approval," he said.

Reacting to a demand raised by Union MoS for Tribal Affairs, Durgadas Uikey, the chief minister announced plans to set up a tribal museum in Betul district.

3. India Post Modernization: Jyotiraditya Scindia Unveils New Post Offices and Training Center in Madhya Pradesh

ET Gov. 12 Jan. 2026

The Government of India’s effort to reimagine the postal network as a modern, citizen-centric public service received a tangible push in Madhya Pradesh this week, as Union Minister for Communications and Development of North Eastern Region Jyotiraditya M. Scindia inaugurated six renovated and modernised post offices and announced the setting up of a major new national training facility for postal personnel.

During his official visit to the state from January 8 to 11, the Minister inaugurated upgraded sub-post offices at Kolaras, Jagatpura, Badarwas, Pichhore and Katthamil, along with the City Post Office.

The revamped facilities are designed to offer improved customer amenities and seamless access to the expanding bouquet of services delivered by the Department of Posts—ranging from mail and parcel delivery to savings schemes, insurance products, digital services and financial inclusion initiatives. For semi-urban and rural regions in particular, the upgraded infrastructure is expected to significantly improve service reach, reliability and operational efficiency.

Speaking at a public function in Katthamil in Shivpuri district, the Minister underlined that the inauguration of modernised post offices was part of a broader transformation agenda rather than a standalone infrastructure upgrade. He noted that India Post’s role has evolved from being a traditional mail carrier to becoming a critical delivery arm for banking, insurance, digital services and direct benefit transfers, especially in areas where other institutions have limited presence.

A key highlight of the visit was the announcement of a seventh National Postal Training Centre to be established at Shivpuri at an estimated cost of ₹111 crore. The Minister pointed out that India Post currently operates six postal training centres—at Saharanpur, Vadodara, Mysuru, Guwahati, Madurai and Darbhanga—which together train around 2,000 personnel annually and have already imparted training to nearly 18,000 officials and employees.

The addition of Shivpuri, he said, would significantly strengthen the country’s postal training ecosystem and position the district alongside established centres of excellence in postal capacity building.

Emphasising time-bound execution, the Minister drew parallels with the recent completion of the Gwalior airport project and directed senior postal officials to ensure that the Shivpuri training centre is completed within eight to twelve months. He announced that the foundation stone would be laid during his next visit, followed by inauguration within the stipulated timeline.

At a separate programme in Pichhore, the Minister also unveiled the names of two upcoming India Post services—Speed Post 24 and Speed Post 48. These services, offering guaranteed delivery within 24 hours and 48 hours respectively, are expected to set new benchmarks for speed, reliability and accountability across the postal network, responding to growing citizen and business demand for time-bound logistics.

The Pichhore event also marked the inauguration of the renovated sub-post office, upgraded at a cost of ₹2 lakh, and the laying of the foundation stone, along with Bhoomi Pujan, for a new sub-post office building to be constructed at an estimated cost of ₹1.11 crore. Together, these initiatives reflect a layered approach to postal modernisation—combining upgraded service points, new infrastructure and institutional capacity building.

With investments in physical infrastructure, workforce training and service innovation, the Department of Posts is positioning itself as a modern public service platform capable of supporting financial inclusion, digital governance and last-mile connectivity.

The Madhya Pradesh initiatives signal the Government’s intent to align India Post more closely with the expectations of a fast-changing economy while retaining its foundational role as one of the country’s most trusted public institutions.

4. Vadodara's Urban Transformation: Balancing Infrastructure, Ecology, and Livability

ET Gov. 30 Dec. 2025

Vadodara is reassessing the trajectory of its urban development as it aligns municipal priorities with Gujarat’s Urban Development Year 2025. This reassessment comes at a time when Indian cities are contending with overlapping pressures, ageing infrastructure, climate variability, fiscal constraints and rising citizen expectations around service delivery and environmental outcomes.

In an interaction with ETGovernment’s Zarna Udasi, Arun Mahesh Babu, Municipal Commissioner of the Vadodara Municipal Corporation, situates the city’s current phase of planning within this wider context, outlining an approach that seeks to integrate infrastructure strengthening, governance reform and ecological restoration, with livability treated as a central objective rather than a downstream outcome.

At the foundation of this approach is a focus on stabilising essential civic systems before layering additional interventions. Vadodara’s City Action Plan, Babu explains, prioritises water supply and wastewater management as both public health imperatives and environmental safeguards. The commissioning of a 130 MLD sewage treatment plant at Gajrawadi, equipped with sequencing batch reactor technology, tertiary filtration and disinfection systems, is intended to ensure compliance with national environmental standards.

At the same time, the expansion of treated wastewater reuse for industrial purposes is aimed at easing pressure on freshwater resources, while upgrades to the water distribution network and real time monitoring systems seek to improve reliability and operational efficiency.

These investments in water infrastructure are being complemented by reforms in solid waste management, reflecting an effort to address environmental outcomes at the neighbourhood level. Moving away from a reliance on centralised disposal, the city has introduced decentralised composting initiatives and community linked waste streams, including flower waste collection through designated Nirmalaya Kalash and compost production by self help groups. According to the Municipal Commissioner, these measures are intended not only to reduce landfill dependence but also to connect municipal systems with everyday civic behaviour, reinforcing environmental responsibility as a shared urban practice.

As the city works to strengthen its core service delivery systems, attention has also turned to the physical networks that shape daily mobility and resilience. Urban road and transport infrastructure are being upgraded through white topping of major corridors to extend surface life and reduce maintenance cycles.

Elevated corridors, redesigned junctions and drainage improvements are being implemented to ease congestion and mitigate monsoon related disruptions. Rather than pursuing large scale road widening, the emphasis, Babu notes, has been on incremental efficiency gains, including the upgrading of traffic circles to improve vehicular flow and reduce idling time.

Underlying these physical interventions is a parallel effort to reform urban governance and operational coordination. Vadodara’s Integrated Command and Control Centre acts as a central node, consolidating inputs from CCTV and ANPR cameras, environmental sensors, smart traffic signals and emergency call boxes. This enables real time monitoring of traffic conditions, flooding risks, public safety incidents and civic operations. Field level execution is supported through Quick Response Teams and Joint Enforcement Teams that act on command centre inputs to address encroachments, illegal dumping and traffic violations. Digital tools such as the Automated Land Encroachment Prevention System use artificial intelligence and geofencing to detect intrusions, while adaptive traffic control systems are being deployed to improve response times.

Citizen facing platforms form a complementary layer of this governance architecture. Through the My Vadodara mobile application and an AI enabled WhatsApp chatbot, residents can register complaints, access municipal services and receive alerts via auto geotagged interfaces. Internally, administrative decision making is being supported by GIS based mapping, health management information systems and unified dashboards. Property assessment processes are being digitised through mobile based systems linked with GIS databases and online self assessment portals, while time bound digital file disposal mechanisms are being institutionalised to address procedural delays.

It is within this broader framework of infrastructure reliability and administrative coordination that Vadodara’s livability agenda becomes most visible, particularly through the Vishwamitri river redevelopment, restructuring, revival and rejuvenation project. Flowing through the city and historically central to its ecology, the Vishwamitri has also been shaped by decades of urbanisation that altered its natural course, reduced its carrying capacity and heightened flood vulnerability.

“The river cannot be treated as a stormwater drain or addressed only after a disaster. It has to be understood as a living ecological system,” says Babu. The redevelopment and restructuring initiative is therefore being approached as a comprehensive environmental and hydrological intervention rather than a cosmetic riverfront project. The focus is on pollution control, systematic desilting, channel restoration and biodiversity conservation, alongside the creation of eco sensitive buffer zones along the riverbanks.

By addressing silt accumulation, encroachments and hydraulic obstructions, the city aims to restore the river’s natural flow dynamics and improve its capacity to manage high intensity rainfall events. Measures to revive native vegetation and protect riparian biodiversity are being integrated to stabilise riverbanks and improve ecological balance. Public access is being planned in a calibrated manner, with pathways and open spaces designed to coexist with ecological buffers rather than displace them. The objective, according to the Municipal Commissioner, is to reintegrate the Vishwamitri into the city’s everyday life while retaining its ecological character.

The river redevelopment and rejuvenation project is also being aligned with Vadodara’s wider climate adaptation framework. Flood preparedness measures, drainage upgrades and emergency response planning are being coordinated with river management efforts, signalling a shift from reactive interventions towards longer term risk mitigation. In this framework, livability is understood not only in terms of aesthetics or public spaces, but as a function of safety, environmental stability and resilience.

Complementing these ecological interventions is a broader strategy to expand green cover and moderate urban microclimates. Structured tree plantation drives and the development of themed ecological spaces such as Nakshatra Van, Medicinal Van, Vad Van and Miyawaki forests are intended to improve air quality, support biodiversity and reduce heat stress, while also creating accessible recreational spaces. Canal front development along the Bhayali Sevasi and Chhani canals seeks to transform underutilised corridors into linear parks that integrate ecological infrastructure with daily urban movement.

Public safety and preparedness have been incorporated into this livability framework as well. Investments in rescue equipment, training of volunteer swimmers, flood drills and awareness campaigns are being aligned with drainage improvements and river management efforts to strengthen emergency response capacity, particularly during the monsoon season.

At the same time, changes in the city’s mobility ecosystem are beginning to shape the lived urban environment. A new electric bus terminal at Gotri is being developed to support an expanding electric bus fleet, with charging infrastructure, passenger amenities and maintenance facilities. In parallel, a city wide network of EV charging stations is being rolled out across residential, commercial and transit zones through public private partnership models. A comprehensive parking policy is being implemented to manage land use more efficiently and reduce roadside congestion through smart parking systems.

Citizen participation and cultural continuity continue to inform Vadodara’s planning approach. Participatory budgeting initiatives allow residents to submit suggestions on municipal priorities, reflecting a shift towards more consultative urban governance. Platforms such as the Vadodara Urban Infrastructure and Innovation Summit facilitate dialogue between citizens, experts and administrators, while heritage restoration projects at Nyay Mandir and Lal Court, along with initiatives such as Kala Setu, literature festivals and city level quizzes, are being positioned as part of the city’s cultural infrastructure.

Economic inclusion underpins these interventions. Programmes such as PM SVANidhi and One District One Product are supporting street vendors, self help groups and artisans through access to credit, skills and market linkages. According to Babu, these initiatives are intended to ensure that urban development is not confined to physical assets but extends to livelihoods embedded within the city’s social fabric.

Reflecting on Vadodara’s current phase of urban planning, Arun Mahesh Babu points to livability as an outcome shaped by infrastructure reliability, ecological resilience and administrative responsiveness. The city’s trajectory, he notes, is not defined by standalone projects but by the gradual strengthening of interconnected systems pursued in parallel. Taken together, Vadodara’s experience offers insight into how medium sized Indian cities are attempting to manage urban expansion while responding to ecological limits and everyday civic needs.

5. Transforming Food Safety and Drug Regulation in Rajasthan: A Zero Tolerance Approach

ET Gov. 7 Jan. 2025

In this conversation, Dr. T. Shubhamangala, IAS, Commissioner of Food Safety and Drug Control, Government of Rajasthan, outlines the state’s aggressive roadmap for safeguarding public health.

From the deployment of 34 mobile testing labs in rural areas to the digital transformation of inspection workflows and the seizure of over 400 tonnes of unsafe food, Dr. Shubhamangala discusses how Rajasthan is combining strict enforcement with cutting-edge technology.

Her insights reveal a multi-tiered strategy focused on transparency, infrastructure expansion, and a "last-mile" approach to ensuring quality standards in both food and medicine.

Edited excerpts:

How is Rajasthan strengthening its food safety and drug control mechanisms to ensure that only safe and quality products reach consumers across urban and rural areas?

Rajasthan has significantly strengthened its food safety and drug regulatory framework by expanding inspection, licensing, and testing capacities across the state, with a clear focus on comprehensive coverage and strict enforcement.

In the food sector, regulatory oversight has widened substantially. In 2025, the department issued 16,377 new food licences and 3,16,329 registrations, ensuring that a larger number of food businesses are formally brought under regulation. Field teams conducted 16,248 inspections and collected 41,740 food samples. Of these, 3,326 samples failed quality standards, and strict regulatory action was initiated in each case.

Surveillance efforts have been intensified to detect violations early. During the year, 34,507 surveillance samples were collected, of which 1,747 failed, allowing enforcement teams to identify adulteration trends and intervene in a timely manner.

To ensure reach beyond urban centres, the state has operationalised 34 Mobile Food Testing Laboratories, which play a crucial role in rural and remote areas. These mobile units enable on-the-spot testing, rapid screening, and immediate feedback, helping bridge the gap between regulation and last-mile access.

In the drug sector, regulatory monitoring has also been strengthened significantly. During 2025–26 (till November 2025), over 66,000 inspections were conducted across manufacturing units, wholesalers, and retailers. The state currently has 473 drug manufacturing approvals and 279 licensed blood banks, all functioning under strict regulatory supervision.

Sampling remains a key pillar of drug regulation. More than 7,046 drug samples were collected during the year, and firm action was taken against 132 substandard medicines. Together, the food and drug wings are focusing on intensive inspections, mobile testing, and targeted enforcement drives, especially during festivals and high-risk seasons, to ensure that only safe, standard-quality products reach consumers across Rajasthan.

What digital monitoring or surveillance systems have been introduced to improve transparency and efficiency in food and drug inspection processes?

Digital transformation has become central to Rajasthan’s regulatory strategy in both food safety and drug control, with a strong emphasis on transparency, efficiency, and traceability.

In the food sector, the FOSCOS portal is fully operational and has enabled paperless licensing, registration, and compliance workflows. This digital platform ensures transparent processes, reduces manual intervention, and improves accountability for both regulators and food business operators.

Surveillance systems have been strengthened through data-driven sampling. Digital sample tracking and online reporting systems ensure that food samples are monitored seamlessly from collection to testing, while integration with mobile laboratory data has reduced delays and enhanced transparency across the inspection process.

In the drug sector, online licensing and renewal systems for manufacturing units, wholesalers, and retailers have significantly reduced processing time and improved regulatory oversight. Real-time sample tracking systems are in place to monitor drug samples—from collection to laboratory testing—with over 7,000 drug test reports generated annually.

The introduction of Digital Laboratory Information Management Systems (LIMS) is further strengthening laboratory operations by enabling faster reporting and smooth data flow between laboratories and field units. Inspection teams now use GPS-enabled monitoring, digital forms, and photo documentation to ensure tamper-proof reporting.

Together, these digital initiatives have enhanced traceability, improved turnaround time, and strengthened confidence in the regulatory process across both food safety and drug control wings.

How is the department enhancing public awareness on food adulteration, counterfeit drugs, and safe consumption practices, especially at the grassroots level?

Public awareness and capacity building are critical components of Rajasthan’s regulatory approach, particularly at the grassroots level, where informed consumers play an important role in ensuring compliance.

In the food safety domain, the department conducts continuous awareness drives in schools, colleges, markets, and Panchayat-level institutions. A major role is played by the state’s 34 Mobile Food Testing Laboratories, which conduct field demonstrations and rapid testing of commonly consumed items such as milk, oils, and sweets. These demonstrations provide instant feedback to the public and help consumers understand the risks of adulteration.

Awareness campaigns are strategically aligned with festivals and high-risk seasons, focusing on identifying adulteration, checking FSSAI licence numbers, and reporting unsafe practices through the Food Safety Connect app. Workshops on food adulteration prevention, healthy eating, and safe food handling are regularly organised under public health initiatives, alongside campaigns aligned with national programs such as Eat Right India and Fit India.

In the drug sector, awareness initiatives focus on issues such as counterfeit medicines, antibiotic misuse, generic drugs, and safe medication practices. These efforts are supported by the operation of 565 active PM Jan Aushadhi Kendras and 386 newly approved centres, which expand access to affordable medicines.

Capacity-building sessions are also conducted for food business operators, pharmacists, frontline health workers, and other stakeholders. These programs aim to improve compliance, strengthen hygiene and safety standards, and empower stakeholders to act as partners in consumer education and protection.

What kind of collaboration is happening between the state, laboratories, and local authorities to ensure effective enforcement of food safety laws and drug quality standards?

Effective enforcement in Rajasthan is driven by strong coordination between regulatory authorities, laboratories, district administrations, and law enforcement agencies.

In the food sector, the department works closely with District Magistrates, Police, Health Department, Municipal Bodies, and State Food Laboratories. District-level teams coordinate with laboratories to ensure timely testing of samples and swift follow-up action. Fast communication channels ensure that failed samples result in immediate enforcement.

In 2025, this coordinated approach led to significant enforcement outcomes, including the seizure of 405 tonnes of unsafe or misbranded food products, with 233 tonnes destroyed on the spot. The state filed 2,838 adjudication cases, imposing penalties amounting to ₹8.65 crore, and initiated 2,297 cases in judicial courts for serious violations.

In the drug sector, close coordination with state drug testing laboratories, district administrations, and police authorities ensures swift action against violators. The state currently operates four drug testing laboratories, with the Jodhpur laboratory being upgraded with modern equipment. Regular coordination meetings between inspectors, local authorities, and judicial bodies support effective case disposal, with 1,211 drug-related court cases filed during the year.

Inter-departmental collaboration also facilitates joint raids, mobile sample collection, and surprise inspections in high-risk areas. This multi-tier coordination framework ensures uniform enforcement and timely regulatory action across Rajasthan.

What are the key priorities and innovations planned to make Rajasthan a model state in food safety and drug regulation?

Rajasthan’s future roadmap is focused on innovation, technology-driven regulation, and capacity enhancement to position the state as a national leader in food safety and drug quality governance.

A key priority is the expansion of quality control infrastructure. The state currently has 11 food testing laboratories, one dedicated microbiology laboratory, seven laboratories with completed upgrade or construction work, and seven newly announced laboratories where work has already been completed. These facilities are being equipped with modern instruments such as HPLC, GC-MS, FTIR, AAS, and microbiological analysers, in line with NABL standards.

In the drug sector, laboratories such as the Drug Testing Laboratory, Jodhpur, are being upgraded with advanced analytical equipment. To strengthen enforcement capacity, 18 new Assistant Drug Controllers have been sanctioned for 2025–26. Laboratories currently process between 6,994 and 7,689 drug test reports annually, ensuring timely regulatory outcomes.

Looking ahead, the department plans to expand fully NABL-accredited laboratories in every division, strengthen cold-chain monitoring for milk, meat, and perishable foods, and increase the number of Mobile Food Testing Laboratories beyond the existing 34 units. The roadmap also includes AI-enabled monitoring, predictive risk assessment, geo-mapped inspections, and 100% digital inspection and e-sampling systems supported by real-time dashboards.

Further priorities include expanding PM Jan Aushadhi coverage through the addition of 386 new centres, enhancing training for field officers and food business operators, and increasing public outreach through mass campaigns, school programs, market awareness drives, and collaboration with civil society.

These measures collectively aim to eliminate spurious drugs, adulterated food items, and unsafe practices from the supply chain, while ensuring safe food and quality medicines for all citizens. Through sustained enforcement, digital innovation, and stakeholder engagement, Rajasthan is steadily moving towards becoming a benchmark state in food safety and drug regulation.

- Agriculture, Fishing and Rural Development

6. DCM Shriram Ltd and Bayer CropScience Ltd Sign MoU to Advance Sustainable and Future-Ready Agriculture

RV, RuralVoice, Dec 11, 2025

The MoU establishes a strategic framework for collaboration across areas such as agri-inputs, digital advisory, sustainable farming practices, and value-chain strengthening.

DCM Shriram Limited, a diversified Indian conglomerate, and Bayer Crop Science Limited, a global leader in crop solutions, today signed a Memorandum of Understanding (MoU) to jointly explore opportunities that strengthen India’s agriculture ecosystem through innovation, sustainability, and farmer-centric solutions.

The MoU establishes a strategic framework for collaboration across areas such as agri-inputs, digital advisory, sustainable farming practices, and value-chain strengthening.

Under this collaboration, both organizations will explore synergies in crop solutions, seeds, specialty plant nutrition, biologicals, digital tools and advisory platforms. The two companies will also assess opportunities to jointly support farmer organisations and strengthen sustainable agriculture initiatives, including pilots in soil health, carbon sequestration, and integrated crop management. Additionally, both companies will evaluate possibilities for partnership across select areas of the chemicals business.

Ajay S. Shriram, Chairman & Senior Managing Director and Vikram S Shriram, Vice Chairman & Managing Director, DCM Shriram Ltd, said, “We are delighted to partner with Bayer to explore new avenues that can benefit India’s farming communities. By bringing together complementary strengths, we aim to support sustainable and productive agriculture while creating long-term value for farmers and the wider ecosystem.”

Commenting on the partnership, Simon Wiebusch, Chief Executive Officer, Bayer CropScience Ltd, said, “Indian agriculture is entering a phase where resilience and value-chain integration will define long-term success. With this partnership, Bayer and DCM Shriram can enhance market access, strengthen value-chain connections, and help farmers tap into emerging opportunities. Our combined and complementary expertise enables us to scale solutions quickly and create lasting positive change."

By combining Bayer’s global expertise in advanced agricultural solutions with DCM Shriram’s deep rural footprint and integrated agri-business capabilities, the partnership aims to enhance farmer livelihoods, improve productivity, and promote climate-resilient farming practices.

7. Rural Voice Awards Honour Leaders Transforming Indian Agriculture Through Science, Innovation and Sustainable Farming

Rural Voice, Dec 10, 2025

Rural Voice Agriculture Awards 2025 honoured Dr. A.K. Singh for path-breaking Basmati research, Mahyco’s Dr. Rajendra Barwale for pioneering in seed business, Bt technologies, and agripreneur Nikki Pilania Chaudhary for promoting sustainable dairy and climate-smart farming. Senior agricultural leaders presented the awards recognising excellence across science, industry and grassroots innovation.

At the ‘Rural Voice Agriculture Conclave & Awards 2025’, three distinguished contributors to Indian agriculture were honoured for their transformative work across agricultural science, industry and farming with Rural Voice Agriculture Awards 2025. The awards were conferred by Dr. R.S. Paroda, TAAS Chairman and former Secretary DARE & DG ICAR; T. Nandakumar, former Agriculture and Food Secretary, Government of India; and Dr. M.L. Jat, Secretary DARE & DG ICAR.

Eminent agricultural scientist Dr. A.K. Singh was recognised for developing high-yielding Basmati rice varieties that have significantly raised farmers’ incomes and strengthened India’s export earnings.Dr. Rajendra Barwale, Chairman, Mahyco Pvt Ltd, received the Agri-Corporate Award for pioneering Bt technologies that revolutionised cotton cultivation. The Progressive Farmer Award was presented to Nikki Pilania Chaudhary, a young agripreneur promoting sustainable dairy practices, poplar farming and climate-smart cultivation techniques.

Category: Eminent Agri Scientist Dr. A.K. Singh, Former Director, IARI, Pusa, New Delhi

Dr. A.K. Singh is a renowned rice breeder, who has been associated with development of 25 Basmati rice varieties at IARI, New Delhi during the last 30 years of his service. These varieties are currently grown in a 2-million-hectare area and contribute Rs. 50,000/- crores of foreign exchange annually to the nation while bringing prosperity to millions of Basmati farmers. He has published more than 250 research papers in journals of repute and written two books. He is Fellow of INSA, NASI & NAAS and recipient of Rafi Ahamad Kidwai Award, Bharat Ratna Dr. C. Subramaniam and Nana Ji Deshmukh Interdisciplinary Team Awards of ICAR, Borlaug Award, Best Teacher Award of IARI, Dr. B.P. Pal award of IARI, Vasvik Award, Omprakash Bhasin Award and D.S. Brar Award.

Category - Agri-Corporate Dr. Rajendra Barwale, Chairman, Mahyco

Agriculture Graduate from GB Pant University of Agriculture and Technology, Pant Nagar, Uttarakhand and Alumni of Harvard Business School, Sri Barwale is better known for pioneering the introduction of Bt Cotton technology in India, a technology which transformed the cotton sector in the country. He introduced the Bt Cotton Technology in Malawi, Kenya, and Nigeria in recent years and the Bt Brinjal technology in Bangladesh in 2013. He has been recognized in many forums for his immense contribution to the cause of betterment of life of small holder farmers using modern science. He is a part of the board of Federation of Seed Industry of India, International Seed Federation, Switzerland and many other organisations. He is a well-known philanthropist too who supports multiple social causes from time to time.

Category - Progressive Farmer Nikki Pilania Chaudhary

A graduate in Economics from Maitreyi College, Delhi University, Nikki did her Master’s in Business Economics and Finance from University of Surrey, UK. Since 2022, along with her husband Gaurav, is dedicated to transforming the dairy scenario in India. Nikki has been invited thrice to Food and Agriculture Organization of the United Nations (FAO), Rome, Italy as a young dairy farmer/agripreneur to share her insights into the dairy farming sector in India. She is known for her poplar farming too. Nikki’s research paper entitled, “Poplar Culture on Farmland: Farmer’s Experience from Uttar Pradesh” was published by Forest Research Institute, Dehradun. Nikki has taken several initiatives to explore the best agricultural practices that are economically beneficial and environmentally sustainable. She promotes conservation agricultural practices such as zero tillage in wheat and direct seeded rice in paddy amongst farmers in the region.

8. India Needs a Unified Farm Policy and Research Focused on Small Farmers: Dr. R.S. Paroda

RuralVoice, Dec 12, 2025

At the Rural Voice Agriculture Conclave and Awards 2025, Dr. R.S. Paroda called for unified agricultural policies, incentives instead of subsidies, and research tailored to small farmers. Prof. Ramesh Ramesh Chand urged diversification beyond MSP crops and a shift toward holistic food systems. ICAR DG Dr. M.L. Jat emphasised innovation, market-driven farming, specialized zones, and wider use of bio-fertilizers to build self-reliant farmers

Dr. R.S. Paroda, Chairman of the Trust for Advancement of Agricultural Sciences (TAAS), has stressed the urgent need for policies and research specifically designed for small-holder farmers. Speaking at the ‘Rural Voice Agriculture Conclave and Awards 2025’ in New Delhi, held to mark the fifth anniversary of the media platform Rural Voice, Padambhushan Dr. Paroda, former Secretary, DARE, and former DG, ICAR, said that farmers must also explore new alternatives to achieve true self-reliance. Dr. Paroda also chaired the jury for this year’s Rural Voice Agriculture Awards.

He noted that although the number of agriculture-related ministries has grown to seven, coordination among them remains weak. India needs a unified agricultural and farmer welfare policy, he said, calling for the replacement of subsidies with incentives and stronger public–private partnerships. Strengthening the agricultural extension system is equally crucial.

Dr. Paroda emphasized the need for institutional mechanisms that genuinely listen to farmers. Farmers’ voices should not be heard only when they protest on the streets, he said. Since agriculture is a state subject, better coordination between the Centre and states is essential. He proposed creating an Agriculture Council on the lines of the GST Council.

Several key agricultural leaders addressed the conclave. NITI Aayog member and noted agricultural economist Prof. Ramesh Chand urged farmers to diversify into crops not covered under Minimum Support Price (MSP), noting that MSP crops have grown at just 1.8 percent over the past decade, compared to nearly 4 percent for non-MSP crops. He said farmers must take proactive steps rather than relying solely on government interventions if they want to become self-reliant.

Prof. Chand pointed out that while agricultural growth has been 4.6 percent over the past decade, domestic demand is rising at only about 2 percent. The resulting surplus must be converted into an opportunity. With a growing affluent consumer base, farmers can earn significantly more by producing crops tailored to market demand, provided the entire value chain is strengthened. Globally, he said, agricultural planning is shifting toward a holistic food systems approach that integrates seeds, production, value addition, marketing, and distribution.

ICAR Director General and, Secretary, DARE Dr. M.L. Jat said that self-reliant farmers are central to India’s vision of becoming a developed nation. He called for innovation, specialised farming zones, skill development, market linkages, incentives instead of subsidies, and the promotion of market-led agriculture. Innovation, he said, is essential for raising productivity and reducing costs.

Dr. Jat stressed that subsidies often limit farmers’ crop choices, whereas incentives encourage diversification and market integration. He proposed developing crop- and region-specific farming zones equipped with research institutions and processing facilities so that farmers receive better prices without depending on MSP. He also highlighted the need to expand the use of bio-fertilizers to reduce chemical dependence and protect soil health and biodiversity. Technologies exist, he said, but they must reach farmers through targeted delivery and enhanced skills.

9. Rising Pollution Clouds Mushroom Farming Prospects in Delhi-NCR Despite Market Growth

Rural Voice, 20 Dec. 2025, Pooja Prasad

Mushroom farming is expanding rapidly in Delhi-NCR due to strong demand and high productivity in limited space, but rising air pollution and temperature instability are threatening yields and profitability. While the sector shows strong growth potential, farmers face challenges ranging from polluted air and compost quality to market volatility, underscoring the need for targeted policy support and infrastructure solutions.

Mushrooms, once dismissed as mere fungi, have now become a staple on plates across Delhi-NCR. This growing acceptance explains why, in just a single room using 15–16 tonnes of compost, farmers are producing between 3,000 and 3,500 tonnes of mushrooms within 45–60 days. This output is not the result of mechanised factory production, but a compelling example of modern agricultural enterprise.

While traditional farming offers limited yields per acre, mushroom cultivation delivers high productivity within a small space and short time frame, provided conditions remain favourable. Mushroom farming is expanding rapidly not only in the capital region but across the country. However, farmers engaged in mushroom cultivation in North India are facing a distinct set of challenges, with the impact of rising pollution worsening year after year.

According to a report by market research firm IMARC Group, India’s mushroom market was valued at approximately $276 million in 2024. Between 2025 and 2033, the market is projected to grow at an average annual rate of about 6.5%, reaching nearly $487 million by 2033. North India accounted for the largest share of the market in 2024, at 39.8%.

The report attributes this dominance to favourable climatic conditions, government support, and existing infrastructure. States such as Himachal Pradesh and Haryana offer ideal temperature and humidity for mushroom cultivation. Government schemes provide training and subsidies, while research institutes support improvements in farming techniques. However, beyond these projections, practical challenges such as pollution are emerging as major obstacles to achieving these targets.

Shivam Gopal Sharma, who operates ARS Mushroom Farms in the Karala area of outer Delhi, has been engaged in this work for two years. He describes mushroom cultivation as less of a traditional farming activity and more of a modern agribusiness. He notes that while consumption of various mushroom varieties has increased in India, many people still avoid them, perceiving mushrooms as fungi or non-vegetarian food.

He explains that air pollution is increasingly damaging crops. When harmful elements are present in the air, they directly affect mushroom growth. As pollution rises every year, farmers are left with little control. At the final stage, when the crop requires ample oxygen, polluted air introduces harmful particles that prevent proper pin formation. As a result, mushrooms fail to develop fully.

Shivam currently grows mushrooms in one room using 16 tonnes of compost and reports yields of 3,000–3,500 tonnes per crop cycle. Each cultivation cycle typically lasts 45–50 days.

Two cultivation models, farmers betting on both

Mushroom cultivation follows two main models. One uses AC units to maintain precise temperatures, while the other, known as the jhuggi model, depends on winter conditions and functions like seasonal farming. Both systems are practised in and around Delhi, though young farmers increasingly prefer the modern AC-based model, likely due to training opportunities available at government centres such as Pusa, KVK and HAIC.

Pawan Kumar established his farm in Ujua in 2016 after training at a Krishi Vigyan Kendra, which also assisted with the initial setup. He later received industrial training from the HAIC training centre in Murthal and the Directorate of Mushroom Research. After starting with a single room and six tonnes of compost that yielded 1,200 kg of mushrooms, he now operates with 70 tonnes of compost and also trains young farmers.

Based in Hasanpur village in Najafgarh, Pawan Kumar has been cultivating mushrooms for over a decade. He says AC units eliminate temperature-related risks and allow better pollution management compared to the jhuggi model. With AC units, mushrooms can be grown year-round, making production independent of seasonal conditions.

Button mushrooms dominate consumption

Among various varieties, button mushrooms remain the most widely consumed in Delhi-NCR. Shiitake and Portobello mushrooms also have demand, but their higher prices limit both consumption and production. As a result, larger varieties such as Portobello have a limited presence in markets.

Pawan Kumar highlights another challenge: farmers in Delhi lack permission to produce compost locally due to urban land classification, despite owning cultivable land. As a result, compost must be sourced from Haryana.

Challenges of the jhuggi system

For farmers using the jhuggi model, cultivation is viable only between October and February. Sowing must be timed so that the final stage coincides with January. If pollution remains high or temperatures fail to drop, yields are severely affected.

Temperature management at every stage

Mushroom cultivation requires precise temperature control at each stage. Sowing requires 22–25°C, casing needs 22–24°C, cooling requires 14–18°C, pin formation needs 12–16°C, and harvesting occurs at 14–18°C. Even minor deviations can lead to failed pinning, small yields or rot. Oxygen and carbon dioxide levels must also be managed carefully throughout the process.

Compost quality risks

Proper compost is critical. Compost may appear suitable but still contain ammonia or be poorly pasteurised, leading to crop failure. Farmers typically lack scientific tools to test compost and rely on experience to assess quality.

Seed availability and handling

Mushroom spawn is available from government centres such as Pusa and Sonipat, though farmers must ensure freshness and absence of contamination. While button mushroom spawn is readily available, other varieties require advance orders.

Careful handling is essential, as even slight discoloration or damage can reduce market acceptance. Improper handling during packing or transport can render produce unfit for consumption. If compost spoils or processing errors occur, crops can be lost entirely. Mushrooms must be harvested, cleaned, packed and delivered to market immediately upon maturity, often on a daily basis.

Demand and supply pressures

Mushroom prices follow demand and supply dynamics. Farmers typically sell through mandis and commission agents, often after taking advances that limit price negotiations. During winter, oversupply can depress prices. Unlike other crops, mushrooms cannot be stored.

Introduced to India in the 1990s, mushroom cultivation has gained strong traction among young farmers by 2025. Addressing pollution, regulatory hurdles and market challenges is now crucial to sustaining the growth of this rapidly emerging sector.

10. Punjab Farmers Can Avail Up to 40% Subsidy for New Orchards

RuralVoice, Dec. 29, 2025

Punjab Horticulture Minister Mohinder Bhagat said that under the National Horticulture Mission (NHM), farmers can avail up to 40 percent subsidy for planting new orchards, as well as for other horticulture activities.

The Punjab government is stepping up efforts to promote crop diversification by encouraging farmers to adopt horticulture through subsidy schemes. State Horticulture Minister Mohinder Bhagat said that farmers can avail subsidies of up to 40% for planting new orchards, as well as for other horticulture-related activities, under the National Horticulture Mission (NHM).

Bhagat said the initiative aims to reduce farmers’ heavy dependence on the traditional wheat–paddy cycle, conserve fast-depleting groundwater resources, and enhance farm incomes through high-value fruit and vegetable crops. The scheme covers a range of horticulture activities, including orchard plantation, making it a viable alternative for farmers seeking sustainable and long-term returns.

Highlighting the state government’s commitment, the minister said the Punjab government, under the leadership of Chief Minister Bhagwant Singh Mann, is actively promoting farmer-centric policies to ensure agriculture becomes both profitable and environmentally sustainable.

The state government has also launched the ‘Apna Pind–Apna Bagh’ campaign, giving a new direction to horticulture development. Under this initiative, fruit-bearing plants are being planted on village panchayat lands. Bhagat added that a state-of-the-art Horticulture Development Centre is being established at Ladhowal in Ludhiana.

Application Process

Explaining how farmers can avail the subsidy, Bhagat said interested farmers can apply through their respective District Horticulture Offices. Farmers are also encouraged to seek support from departmental field staff, who will assist them in preparing applications, meeting eligibility requirements, and completing the required formalities.

He emphasized that the Mann government is committed to ensuring that the benefits of all schemes reach farmers at the grassroots level in a transparent and timely manner. The minister urged farmers to make maximum use of horticulture schemes and gradually diversify towards fruit and vegetable cultivation to secure better and more stable incomes.

Punjab’s push towards horticulture comes at a time when concerns over soil health, water scarcity, and farm sustainability are growing, making orchard-based farming an increasingly important option for the state’s agricultural future.

- Industry and Manufacture

11. Production Linked Incentive Scheme: PLI schemes attract ₹2 lakh crore investment till September, lift output and jobs across sectors

ET Gov. 13 Dec. 2025

India's Production Linked Incentive (PLI) program has significantly boosted manufacturing, investment, and exports, with nearly ₹2 lakh crore invested across 14 sectors.

India’s Production Linked Incentive (PLI) programme has emerged as a major driver of manufacturing expansion, investment inflows and export growth, with tangible gains recorded across priority sectors, the government said on Thursday.

According to official data reviewed up to September 2025, the PLI schemes have led to actual investments of nearly ₹2 lakh crore across 14 sectors. These investments have translated into incremental production and sales worth over ₹18.7 lakh crore and have generated more than 12.6 lakh jobs, both direct and indirect.

The impact has been particularly visible in sectors critical to domestic capacity building and import substitution. In pharmaceuticals and medical devices, the PLI programme has helped narrow the gap between domestic demand and manufacturing capability. Under the medical devices scheme alone, 21 approved projects have begun producing 54 different devices, including high-end equipment such as Linear Accelerators (LINAC), MRI and CT scanners, heart valves, stents, dialyzer machines, C-Arms, cath labs, mammographs and MRI coils.

India’s standing in the global pharmaceuticals market has also strengthened, with the country now ranking as the third-largest producer by volume. Exports account for nearly half of total pharmaceutical production, while dependence on imports has reduced due to domestic manufacturing of key bulk drugs, including Penicillin G.

Electronics and telecom manufacturing have seen equally sharp gains. Domestic mobile phone production rose from ₹18,000 crore in 2014–15 to ₹5.45 lakh crore in 2024–25, marking a 28-fold increase. In the telecom sector, import substitution of around 60 percent has been achieved, with India becoming largely self-reliant in products such as antennae, GPON equipment and customer premises equipment. Global technology companies have set up manufacturing bases in the country, positioning India as a significant exporter of 4G and 5G telecom equipment.

In the white goods segment, 84 companies approved under the PLI scheme for air conditioners and LED lights are expected to invest ₹10,478 crore, further strengthening domestic manufacturing capacity.

As of September 30, 2025, cumulative incentives worth ₹23,946 crore had been disbursed under PLI schemes covering 12 sectors, including large-scale electronics manufacturing, IT hardware, bulk drugs, medical devices, pharmaceuticals, telecom and networking products, food processing, white goods, drones and drone components, specialty steel, textiles, and automobiles and auto components.

On the export front, India’s merchandise exports between April and October 2025 showed resilience despite global economic headwinds. Electronic goods exports grew sharply by 41.94 percent, driven by strong demand for smartphones and consumer electronics in markets such as the United States, the UAE and China. Agricultural exports—including rice, fruits, spices, coffee and marine products—also recorded steady growth, while pharmaceutical exports rose by 6.46 percent, supported by demand from countries such as Nigeria and the US.

Engineering goods, India’s largest export category, expanded by 5.35 percent, aided by higher shipments to Germany, the UK and South Africa. Overall export performance for the fiscal year so far remains positive compared to the previous year, reflecting underlying resilience amid global volatility, geopolitical disruptions and softer demand in certain markets. The government noted that there is no conclusive evidence at present linking export trends to tariff-related actions.

However, officials acknowledged that declines in some commodities underline the continued impact of weak global demand and price corrections. The mixed performance across sectors highlights the need for sustained export diversification, higher value addition and deeper market access to maintain growth momentum.

To support exporters, particularly MSMEs, the Ministry of Commerce and Industry has rolled out a range of measures. These include market diversification efforts, improved trade infrastructure and enhanced access to affordable trade finance. A key initiative is the Export Promotion Mission (EPM), approved by the Union Cabinet on November 12, 2025, with a budgetary outlay of ₹25,060 crore over six years. The mission aims to address structural bottlenecks faced by exporters, especially MSMEs.

Another flagship initiative, Bharat Trade Net (BTN), announced in the Union Budget 2025, seeks to digitise trade documentation, improve access to export finance and integrate India’s trade ecosystem with global standards. Programmes such as Districts as Export Hubs and E-Commerce Export Hubs are also enabling MSMEs, start-ups and artisans to access global markets at lower cost.

Infrastructure upgrades under the National Logistics Policy and PM Gati Shakti are helping reduce logistics costs, while the government continues to pursue free trade agreements to expand market access. Recently, the Comprehensive Economic Partnership Agreement with the United Kingdom was signed to reduce trade barriers and promote investment.

In parallel, several employment-focused initiatives are being implemented to strengthen the MSME sector, including the Prime Minister’s Employment Generation Programme, the Credit Guarantee Scheme for Micro and Small Enterprises, the Employment Linked Incentive Scheme and the Self Reliant India Fund of Funds, which aims to provide ₹50,000 crore in equity support to scalable MSMEs.

The government said the PLI programme remains under continuous monitoring by implementing ministries and at the Empowered Group of Secretaries level. While sectors such as pharmaceuticals, large-scale electronics, medical devices and select textile segments have already shown clear gains in value addition and export competitiveness, others are still in various stages of implementation and scale-up.

12. India Now Home to 200.000 Recognised Startups: Goyal

ET, 13 Oct. 2015

India is now home to over 200.000 government-recognised startups, with over 44,000 entities recognised this year alone, the highest in a year since the inception of the Startup India initiative, commerce and industry minister Piyush Goyal posted on X on Friday.

He said nearly 48% of these startups have at least one woman director/partner.

Under the Startup India initiative launched in 2016, the recognised units are eligible to avail incentives such as income tax relief.

“What makes this success sweeter is that nearly 48% of these startups have at least one woman director/partner. These startups have also helped generate over 21 lakh direct jobs,” Goyal said.

The feat, he added, has been accomplished with above ₹25,320 crore capital invested in over 1,350 startups by Alternative Investment Funds under the Fund of Funds for Startups Scheme, and more than ₹775 crore granted under the Credit Guarantee Scheme for Startups.

As per the post, over ₹585 crore were approved to more than 3,200 startups applications by incubators under the Startup India Seed Fund Scheme.

“As we prepare to enter a new year, this spirit of innovation and entrepreneurship will continue to drive growth, opportunities and prosperity for all,” Goyal said.

13. New Zealand's $20 Billion Investment Strategy in India: Free Trade Agreement Signed

ET Gov. 24 Dec. 2015

While dairy exporters would have liked to have seen more, the New Zealand economy “is much more than dairy farmers,” McClay said.

As India concluded a free trade agreement with New Zealand on Monday, marking its third FTA of the year, the two countries sealed a commitment for New Zealand to promote investment into India with the aim of increasing private sector investment by $20 billion over 15 years.

“The Indian government has said they’ll be very open and make it easier for New Zealanders and their companies to invest in their economy over those 15 years,” New Zealand's Trade Minister Todd McClay told Bloomberg Television on Tuesday. “There are New Zealand companies that are active around the world but not in the Indian market yet that will have an opportunity to do this.”

Piyush Goyal, Union Minister of Commerce and Industry noted that the agreement is expected to bring substantial investments in innovation, manufacturing and exports, with India emerging as a manufacturing base not only for New Zealand but also for other global markets. He emphasised that the MSME sector would be the biggest beneficiary of these developments.

The free trade pact was jointly announced by Indian Prime Minister Narendra Modi and New Zealand's Prime Minister Christopher Luxon, with an aim to elevate the relations to much higher strategic levels. The two countries concluded the landmakrk agreement in just nine months that noy only includes trade, education, R&D and innovation, services sector, tourism and sports, but is a "multiferous engagement, particularly to benefit our farmers".

The FTA cuts duties on 95% of New Zealand’s exports to New Delhi. Under the pact, New Zealand will provide zero-duty market access on 100% of India’s exports.

New Zealand companies will get more opportunities to invest in India under the terms of the two nations’ new free-trade accord, McClay said, adding that there are opportunities in India for food manufacturing, engineering and construction that will be enhanced by better, more reliable rules and a stronger relationship between the two nations.

Goyal called upon stakeholders to work together to rapidly realise the opportunities arising from the FTA and to aim at "doubling, tripling and even quadrupling bilateral trade" in goods and services.

“It’s a very clear determination of the two governments to say we are open to trade, we are open to investment, we want it to go in both directions, we want it to be fair and balanced and we’re willing to support the private sector by way of better rules and better direction to achieve this,” McClay told Bloomberg TV.

While dairy exporters would have liked to have seen more, the New Zealand economy “is much more than dairy farmers,” McClay said.

“We will keep talking to India as we do with other trade partners about the opportunity for greater cooperation in many areas including dairy,” he added.

"We have been very sensitive to protect all the sectors, like farmers' interest in rice, wheat, dairy, soya and various other farmer products, agricultural products, which have not been opened up with any access," India's commerce minister said on Monday.

14. Indian companies plan more hiring in 2026 compared with 202

ET, 01 Jan. 2025

Indian companies are likely to hire 10–12 million employees in 2026, nearly 2 million more than last year. Several companies said they will step up campus hiring while also improving workforce diversity.

Agencies: EY India plans to hire 14,000-15,000 people in its fiscal year ending June 2026

Corporate India is likely to hire more in the year ahead compared with 2025.

Staffing services firm TeamLease predicts Indian companies to add 10-12 million jobs in calendar 2026, compared with 8-10 million in 2025. HR executives at companies such as EY, Godrej Consumer Products, Diageo, Tata Motors and Motilal Oswal Financial Services said they are stepping up recruitment with a focus on diversity and campus hiring.

While campus hiring is re-emerging as a key theme, for some companies, improving workforce diversity will also be a focus area.

EY India plans to hire 14,000-15,000 people in its fiscal year ending June 2026, chief HR officer Arti Dua said. "Campus hiring has always been an important pillar of hiring at EY," she said.

It hires around 2,000 people annually from business schools, engineering colleges as well as law and undergraduate colleges. At present, it has close to 50,000 employees.

At the Indian unit of Diageo, where hiring will focus on new skills such as digital, supply and category expansion that are critical to its growth, the British alcoholic beverage company will also seek to increase female representation in its headcount, CHRO Shilpa Vaid said. Women currently account for 30% of executive workforce and 31% of leadership at the company.

TeamLease Digital chief executive Neeti Sharma cited digital and tech transformation, as well as growth in financial services, healthcare and infrastructure industries for the pickup projected in hiring. MNCs setting up global capability centres and increasing consumer demand, especially in cities beyond metros, are among other factors that could support hiring.

For Tata Motors, most of the hiring will be aligned with opportunities anticipated across battery technology, software-defined vehicles, hydrogen fuel, engineering and R&D, commercial roles, and customer service, CHRO Sitaram Kandi sid. Tata Motors, as well as others like Godrej Consumer Products will also focus on inclusivity. At Godrej Consumer Products, HR head Vaibhav Ram said the company is aiming to increase the representation of persons with disabilities, LGBTIQA+ and cis-women to 33% by FY27 from 31% now.

Motilal Oswal Financial Services is looking at hiring across all lines of businesses. "We will hire for replacement roles and for incremental roles in the areas of tech, data science, AI, support functions," group CHRO Niren Srivastava said. It is also aiming to have more female leaders in its workforce.

Most of these companies will also continue to invest in upskilling existing workforce, their executives said.

15. Mahindra Records 37 pc Growth in Domestic Tractor Sales in December 2025

RuralVoice, Jan. 2, 2026

Mahindra & Mahindra’s Farm Equipment Business reported strong growth in December 2025, with domestic tractor sales rising 37 percent year-on-year to 30,210 units.

Mahindra & Mahindra Ltd.’s Farm Equipment Business (FEB), reported strong tractor sales performance in December 2025, driven by improved farm cash flows, favorable weather conditions, and higher rabi sowing.

The company sold 30,210 tractors in the domestic market during December 2025, compared to 22,019 units in the same month last year, registering a 37 percent year-on-year growth.

Including exports, Mahindra’s total tractor sales stood at 31,859 units in December 2025, up from 22,943 units a year ago, marking a 39 percent increase. Exports for the month rose sharply to 1,649 units, recording a 78 percent growth over December 2024.

Commenting on the performance, Veejay Nakra, President – Farm Equipment Business, Mahindra & Mahindra Ltd., said improved liquidity in rural markets following the kharif harvest played a key role in boosting demand.

“Cash flow availability in the market has improved, supported by favorable crop yields after the kharif harvest. In addition, conducive weather conditions and healthy reservoir levels have led to an increase in rabi sowing acreage, which is expected to sustain tractor demand in the coming months,” Nakra said. He added that the export performance also remained robust, with overseas shipments rising sharply during the month.

Year-to-date performance remains strong

For the April–December period of FY26 (up to December 2025), Mahindra’s domestic tractor sales reached 3,91,890 units, compared to 3,24,327 units in the corresponding period last year, reflecting a 21 percent growth. Exports during the same period rose 20 percent to 14,702 units, while total tractor sales increased to 4,06,592 units, up from 3,36,623 units a year earlier.

Industry analysts say the sustained rise in tractor sales indicates improving rural sentiment, supported by better monsoon outcomes, higher cropping intensity, and steady investment in farm mechanization.

- Services (Education, Healthcare, IT, R&D, Tourism, etc.)

16. India Supercomputing: India to build fully indigenous high-performance computing systems by 2030

ET Gov. 12 Dec. 2025

India aims for full self-reliance in high-performance computing systems by 2030. Products are expected to reach the market by 2032.

Bengaluru: India is targeting complete indigenisation of its high-performance computing (HPC) systems by 2030, with products set to be rolled out by 2032, India Semiconductor Mission (ISM) chief executive Amitesh Kumar Sinha said on Tuesday.

"By 2030, we will develop the complete system, and by 2032, manufacturing and products will come out in the market," he said at the Supercomputing India 2025 conference here.

Indigenous content in HPC systems has already reached 50 per cent and is expected to exceed 70 per cent by the end of the decade, Sinha said.

Outlining how India's push in electronics manufacturing and semiconductors is now extending deep into the supercomputing ecosystem, he noted that electronics production has grown sixfold over the past decade, while exports have risen eight times.

The mobile handset sector, one of the most visible success stories, has seen production expand 28 times and exports surge 127 times.

"These figures tell us that electronics manufacturing is increasing. It started with assembly, and now we are going deeper in the value chain for value addition," Sinha said.

He said the recently announced electronic component manufacturing scheme (ECMS) aims to strengthen domestic capabilities further.

Parallel to this, ISM has approved ten projects spanning chip fabrication, semiconductor packaging, and advanced manufacturing facilities.

"If we are going to indigenise the entire stack, we must have capabilities in all segments," Sinha said.

On the HPC front, he said the Centre for Development of Advanced Computing (C-Dac) has successfully built indigenous components, including servers, interconnects, and liquid-cooling systems.

India's current goal under the National Supercomputing Mission (NSM 1.0) is to deploy 90 petaflops of computing capacity by March 2026, of which 40 petaflops have already been achieved using the Rudra-1, 2, and 3 servers developed with Intel and AMD assistance.

A roadmap for exascale computing has already been prepared under NSM 2.0, which will focus on next-generation server development, including indigenous CPU, GPU, and AI accelerators, Sinha said.

He also highlighted the synergy between semiconductor, AI, and quantum initiatives.

17. Transforming Indian Higher Education: The VBSA Bill 2025 and the Future of Research

ET Gov. 24 Dec. 2025

India’s higher education system has long struggled with multiple authorities and fragmented, compliance-driven regulations. The proposed Viksit Bharat Shiksha Adhishthan (VBSA) Bill, 2025 seeks to address this by establishing a unified regulatory framework, aligning with the National Education Policy (NEP) 2020.

The key benefits of the VBSA Bill include streamlined oversight of all higher education institutions, consistent regulatory standards, faster approval processes, reduced duplication of compliance efforts and improved transparency across the system.

A Simpler Regulatory Architecture

At its core, the VBSA Bill replaces the existing regulatory maze by consolidating the UGC, AICTE, and NCTE frameworks into a single, integrated system for governing all HEIs. This consolidation eliminates overlapping mandates and inconsistent guidelines that previously hindered the institutions' growth, enabling more efficient decision-making and resource allocation across the sector.

The Bill allocates regulation, accreditation and standard-setting to distinct bodies to reduce conflicts of interest and enhance credibility. A single-window digital platform improves access to institutional information, enhances transparency and reduces paperwork.

Crucially, while minimum standards will be uniformly enforced across all HEIs, VBSA links greater autonomy to performance. Institutions that demonstrate high levels of quality and accountability will enjoy greater freedom in curriculum design, admissions and collaborations.

The Real Test: Research and Innovation

While a simple regulatory reform is essential, its success will ultimately depend on whether it enables our universities to become engines of knowledge creation and innovation.

NEP 2020’s vision of research-integrated education must now be realised through inquiry-based learning and problem-solving from undergraduate to postgraduate levels, building a pipeline of future researchers. Strengthening the doctoral and postdoctoral ecosystem—by expanding programs, offering fellowships, and establishing stable career pathways—is essential to innovation.

The Bill supports performance-linked research by tying public funding to outcomes like research quality, patents, societal impact and industry collaboration.

Flexible norms for industry ties, faculty mobility, shared infrastructure and commercialisation can help research deliver social and economic value. Addressing challenges—climate change, health, AI, infrastructure—requires interdisciplinary research, which VBSA should encourage through cross-disciplinary programmes supporting national missions.

Universities should nurture innovation and entrepreneurship through start-up support, technology-transfer help desks, seed funding, and industry and alumni mentoring. VBSA’s clarity can address risk aversion and encourage experimentation at all levels.

Globalising Indian Higher Education

To fully leverage research excellence, India will have to deepen the globalisation of its universities. This includes promoting joint degrees, dual PhDs and international research consortia; easing norms for faculty and students' global mobility and aligning accreditation standards with international benchmarks, while remaining rooted in national priorities and Indian knowledge traditions.

Looking Ahead

The VBSA Bill, 2025 promises a coherent and transparent higher education system. Its impact will depend on effective implementation and on fostering research-driven, globally connected universities that will help establish India as a leader in the global knowledge economy.

(The author is former Additional Chief Secretary of higher education. Views expressed are personal)

18. ISRO Revolutionizes Global Space Launches with 390 Satellites Since 2014

ETGov. 27 Dec. 2025

ISRO has launched 390 satellites for 34 countries since 2014.

India’s space agency ISRO has launched 390 satellites for 34 countries since 2014, underlining its growing stature as a reliable and cost-effective space services provider, Moneycontrol reported.

The milestone reflects India’s steady rise among the world’s leading spacefaring nations, driven by consistent mission success, competitive pricing and technological precision. ISRO’s launch record includes commercial missions for clients across Asia, Europe, the Americas and Africa, strengthening India’s footprint in the global space economy.

ISRO’s Polar Satellite Launch Vehicle (PSLV) has been a key contributor to this track record, handling a wide range of payloads and orbit requirements. In 2017, the agency set a global benchmark by launching 104 satellites in a single mission, a feat that significantly enhanced confidence among international customers.

At the start of 2025, India also achieved a major technological breakthrough by becoming the fourth country globally to demonstrate space docking capability. Under the PSLV-C60 SpaDEx mission, two small satellites, SDX-01 and SDX-02, were launched on December 30, 2024, and successfully docked in orbit on January 16, 2025, opening avenues for advanced missions such as on-orbit servicing and future space stations.

With the completion of its 100th launch, India now ranks among the top five spacefaring entities, alongside the United States, Russia, China and Europe. In recent years, ISRO has expanded international collaborations and commercial launch services, further boosting global demand for India’s space technology and reinforcing its reputation as a dependable launch partner.

19. Paid less than plumbers? The real story of freshers’ salaries at Infy, TCS.

ET, 1 Jan. 2025

That’s how Farhan Qureshi, one of the 3 Idiots played by R Madhavan in the Aamir Khan starrer, narrated how he ended up at the ‘Imperial College of Engineering’. While Madhavan’s character in the 2009 blockbuster was of course fictitious, it did mirror what millions of Indian parents want their kids to be – an engineer.

For decades, engineering was a respected, well-paying profession that guaranteed a better life. And with India’s burgeoning IT services industry, the engineer didn’t have to be one of the elite graduates of the IITs. A degree from any of the hundreds of colleges that mushroomed around the country would do.

But things have changed.

IT fresher salaries haven’t increased in over a decade. Worse, home and personal services startup Urban Company last year said the top 20% of its partners – plumbers and beauticians – earn more than IT freshers.

- So, when did the engineering dream turn into a nightmare?

- Is studying engineering still as attractive to the Indian middle class as it was earlier?

- Why aren’t freshers being paid more?

- And what happens if GenAI destroys demand for the freshers in the first place?

The squeeze

“There was a promise that the industry made to the freshers about growth and career prospects. When the industry was growing fast, you had career growth because the companies were growing fast. That was a promise fulfilled. That has changed,” says Malcolm Frank, CEO of Talent Genius. Frank was former president of Cognizant’s technology services business.

The core of the engineering dream was the Indian IT industry. When Indian IT began its journey, it didn’t have the vast workforce that rose up with it. The companies created it themselves.

“The success of the Indian IT industry is the industrialisation of the talent workforce. We took freshers, who knew nothing about the business, trained them for two years and created the talent base. We are proud of this. But all the backlash about fresher salaries not increasing ignores the fact that IT billing rates have dropped over the last decade,” says an HR head at one of the top three IT services companies in the country.

The commoditisation of services, delivered by the overwhelming majority of the Indian IT workforce, has resulted in IT companies getting paid less for the same work.

“Revenue per employee and billing rates have barely grown by 2%-3% since FY19. Billing rates for commoditised services have dropped to USD20/hour or lower, especially for basic application development and maintenance,” says Gaurav Vasu, CEO of business intelligence and consulting company UnearthInsights.

Vasu points out that increasing competition, along with the rise of global capability centres (GCCs) and GenAI, makes it difficult to equally pass on the benefits to freshers, mid-level employees and CXOs.

The industry pays INR3.5 lakh-INR4 lakh a year for a fresher, a number that hasn’t changed in over a decade. Hikes in the initial phase are also low. According to data from UnearthInsights, the average increase in the first two years is 4%-6%. As freshers gain experience from four-eight years, hikes increase to 6%-8% for moderate performers and about 10% for high performers.

Contrast this with what some of the skilled labourers in unorganised civil construction get.

Urban Company, that serves as platform for specialised workers like electricians, plumbers, and mechanics, said that the top 20% of its service professionals earn over INR41,000 a month, implying earnings of INR4.92 lakh, above what freshers in technology companies earn. The average professional at Urban Company earns about INR26,500 a month, or about INR3.2 lakh a year.

The long held belief that jobs of an electrician or a plumber are more draining than white collar jobs is also turning out to be myths. These workers on an average spend about 87 hours a month on the platform, Urban Company said in its IPO offer document released in May. A fresher in a technology company works 198 hours a month and is out-earned significantly.

But Indian society celebrates children of plumbers becoming engineers but the reverse is not yet encouraged.

Niche digital skills command 12%-15% hikes but that is a very small percentage of the industry. But the main way to grow your IT industry salary is to switch jobs.

“The only way to ensure your pay doesn’t stagnate is to switch. During the Covid-19 boom, people switched for 40%-60% raises, depending on their skills and ability to negotiate. But when the growth in the industry is stagnant, those hikes at switching also decrease,” says a second HR executive at another IT services company.

The industry is also differentiating pay-by-skills, with those with higher value skills can earn more.

“Native Digital/ AI and GenAI freshers currently command a premium of INR6 lakh to INR9 lakh per annum within TCS, Accenture, Capgemini, Infosys, HCL etc. versus traditional engineering graduates at INR3 lakh to INR4 lakh per annum,” says UnearthInsight’s Vasu.

The oversupply

A significant part of the problem is also the large number of IT freshers that graduate every year, about 1.5 million, few of whom have the necessary skills. The outlook for them is bleak.

“If you are a talented technologist, you can go anywhere. Why would you go to an IT services company when you could go to a startup or a product company? Those two are not even considered risky anymore, because you could always join a GCC if something goes wrong,” says Talent Genius’ Frank.

But if you are a mediocre person who has been pushed into a field because it was perceived to be the pathway to future stability, then the future could be bleak.

“Here’s the issue with the [employee] lifecycle in IT services companies such as application development and application maintenance and others – AI is going to remove 30%-50% of the workforce. So, those that are going to keep their jobs are those people that can learn to manage a team of AI agents. Those people are going to have value and keep their jobs. Those who continue to do their job manually as they have for the last several years, they are going to get replaced,” adds Frank.

Factoring in the impact of GenAI, UneartInsight takes this further, believing that the Indian IT industry will no longer provide the bedrock of engineering fresher employment.

“UnearthInsight predicts FY27 onward IT services could start losing the tag of largest fresher recruiters to GCCs and Indian domestic businesses,” says Vasu.

The blame game

With their prospects diminishing, freshers also face a lot of the blame. They are unskilled, the criticism goes. They need to up-skill themselves, apply for courses with real-life value, experts say.

While the criticism is valid – of course, people should be responsible for keeping themselves employable – it ignores a crucial fact. A large portion of the students take education loans to study at engineering colleges that still leave them unprepared for the job market. Taking on additional courses is a financial burden they may be unable to bear, especially if they fail to get jobs to pay back existing loans.

“UnearthInsight believes the next two to three years will be a transition phase for freshers wherein industry and academia will align on future demands to build future-ready [talent] supply for IT/ tech services firms. GenAI adoption and changing client tech stack needs is also reducing demands for freshers, hence Indian engineering colleges will have to build freshers with specialised, high-value skills which commands significant salary premiums,” says Vasu.

But the transition will be painful for those currently in the system. They will still study at colleges that do not teach them skills they need to be employable. And when they fail to find jobs or receive low salaries, they will be blamed for being unskilled and, essentially, disposable.

Maheshwer Peri, founder and CEO of educational products and services company Careers360, says it is ridiculous to blame students over their skillset and employability

“We permitted the colleges. We licensed them. We set the curriculum. We set the assessment. We test them. We pass them. And when we fail in the promise that we made to them, of making them skilled and employable, we blame them. They passed an exam we set. We failed,” Peri’s post on X (formerly Twitter) read.

Whether the education system is to be blamed or the lack of skill among a large section of the IT employees, survival of the fittest remains at the core of the change the IT industry is going through.

20. Revolutionizing India's Innovation: The Essential Industry-Academia Collaboration

ET Gov. 12 Jan. 2026

India’s journey from a service economy to a product nation will be defined by how well we collaborate.

Industry-academia collaboration has been an integral part of innovation globally. In India, such collaborations have not been as common as they should have been, but things are changing rapidly. Conversations around such collaborations are certainly providing the necessary impetus to collaborate to create in India, for the world.

One such dialogue was organized by the Confederation of Indian Industry (CII) recently where the biggest names from Indian academia and research leadership came together: vice chancellors, institute directors, chief scientists, and industry leaders. These visionary leaders gathered not merely to exchange ideas, but to embrace a shared reality: India stands at an inflection point in its innovation journey.

With leaders such as Dr Shivkumar Kalyanaraman, CEO of the Anusandhan National Research Foundation (ANRF), alongside the Directors of Indian Institute of Technology Bombay, Prof. Shireesh Kedare; Indian Institute of Technology Delhi, Prof. Rangan Banerjee; and Group Vice Chancellor of Birla Institute of Technology and Science Pilani, Prof. Ramgopal Rao, among others, the message was unmistakable: India has the talent, the ambition, and the scale, but without deep, structured collaboration between industry and academia, our innovation potential will remain under-realized.

As Prof. Rao put it this match made in heaven needs to see realisation and actuation on earth grounded in reality and with ample pragmatism.

India’s Moment: From Talent-Rich to Product-Rich

Since the early 90s, India has been seen as a talent hub and post 2010, a vast market for digital products. That narrative is changing. With one of the youngest populations globally, deep digital penetration, one of the fastest tech adoption rates, and a rapidly expanding startup ecosystem, India is gradually becoming an R&D powerhouse.

Yet, innovation does not scale on talent alone. It needs structure and legacy systems that excel in tangible research outcomes. The missing link lies in trust-based, outcome-oriented partnerships between industry and academia.

Working across emerging technologies, AI skilling at scale, global trade, and cybersecurity, I see a consistent pattern. India does not lack ideas or capability. What we lack is alignment, and the execution muscle to translate research into products, pilots into platforms, and papers into patents that shape markets.

During my address I outlined: Why Industry–Academia Partnerships Matter

History offers powerful proof points of what is possible when industry and academia move in lockstep.

India’s Indian Space Research Organisation missions: Chandrayaan and Mangalyaan were strengthened through deep collaborations with IITs on materials, sensors, and propulsion systems.

Google’s PageRank algorithm, born out of research at Stanford University, went on to create one of the world’s most valuable technology companies.

The IIT Madras-led Shakti and Vega RISC-V processors, developed with industry support, have placed India firmly on the global semiconductor map.

COVID-19 vaccines worldwide were accelerated through unprecedented university–industry collaboration spanning genomics, clinical trials, and biotechnology.

Breakthroughs in AI: speech recognition, robotics, even quantum research, have emerged from partnerships like Massachusetts Institute of Technology–IBM and Stanford–Google.

The lesson is clear: transformative innovation is rarely the product of isolated effort.

The Intent–Implementation Gap

If collaboration is so valuable, why do so many partnerships stall? The challenge is not intent; it is asymmetry.

Academia and industry operate under different incentive structures. Academics are rewarded for publications and citations; industry is driven by commercialization and return on investment. Timelines differ as well—semesters versus quarters. Even the language diverges: research outcomes versus revenue outcomes.

The result is familiar. Promising projects remain pilots. MoUs are signed with fanfare but fade into obscurity. Conversations never mature into prototypes, testbeds, or scalable products. Bridging these asymmetries is the single most important step in unlocking India’s innovation engine.

What Industry Needs and What Academia Wants

From an industry perspective, the asks are pragmatic: talent that is deployment-ready, research that can move faster from Technology Readiness Levels (TRL) 3 to 7 or 9, access to testbeds and co-innovation labs, and robust governance frameworks, especially as AI and cybersecurity become board-level issues.

Academia, on the other hand, seeks long-horizon research funding, access to real-world datasets and use cases, opportunities for nation-building impact, and platforms where students and faculty can work on cutting-edge, industry-scale problems.

Partnerships succeed when they acknowledge these differences and design models where incentives converge rather than collide.

Models That Work: Lessons from Industry

The co-creation model focuses on joint labs with clear problem statements, shared IP frameworks, and time-bound milestones. Students work on live industry challenges while faculty co-author patents and publications.

The talent-to-impact pipeline integrates industry-designed micro-credentials into university credit systems. Programs such as InMobi’s AI Kaushal, Digital Jan Shakti, Glance for Good, and NIHIT’s capacity-building initiatives demonstrate how skilling can move seamlessly from classrooms to communities and companies.

The global standard–local innovation model, driven through NIHIT and the India–US CEO Forum, democratizes access to compute, datasets, and research infrastructure for Indian researchers. This approach offers a blueprint for equitable, high-value global R&D collaboration.

Finally, responsible innovation must be a core partnership principle. Cybersecurity, misinformation, deepfakes, and AI safety cannot be solved in silos. Industry and academia must jointly build guardrails, standards, and red-team capabilities suited to India’s scale and diversity.

A CXO’s Blueprint for India’s Next Decade

What must India do next? Five steps stand out.

First, we need to create national innovation corridors: co-located clusters of industry and academia focused on AI, semiconductors, biotech, mobility, and cybersecurity, with frictionless access to compute, prototyping facilities, and regulatory support.

Second, we need to move from MoUs to KPIs. This will be decisive. Every partnership must have clear problem statements, defined deliverables, joint governance, and shared success metrics. Without KPIs, collaboration remains ceremonial and merely photo-ops that undermine partnerships.

Third, establishment of an India Research Consortium: a national platform that matches industry problems with academic expertise and government incentives, dramatically reducing search costs and accelerating collaboration.

Fourth, it’s time to institutionalize faculty-in-industry and industry-in-academia rotations. Short-term exchanges help build a shared language and common mental models that no contract can substitute.

Finally, it is crucial to incentivize diversity and inclusion in R&D. India cannot lead globally with half its population underrepresented. Research grants and innovation clusters must intentionally include women, rural researchers, and young innovators. Experience from initiatives like Digital Jan Shakti and Inaara shows that inclusion does not dilute excellence, it amplifies it.

From Conversation to Collaboration

India’s journey from a service economy to a product nation will be defined by how well we collaborate. The next decade belongs to countries that can build trusted, agile, and globally credible innovation ecosystems.

With ANRF shaping the national research agenda, industry bringing scale and execution, academia providing depth and discovery, and government acting as an enabler, India is uniquely positioned to lead, not follow, the next wave of global innovation.

Our goal must be simple, bold, and urgent: from conversations to collaborations, from collaborations to commercialization, and from commercialization to global leadership. That’s how India can become a true Vishwa Guru and we will create a strategic roadmap for a Viksit Bharat 2047 which is truly inclusive and for all.

(The author is Global SVP, Chief Corporate Affairs & Public Policy Officer, InMobi; Views expressed are personal)

INDIA and the World

21. From BRICS to Quad: India to host series of global summits in 2026

ET Gov. 03 Jan. 2026

India is set to make high-level leader meetings a central part of its foreign policy this year, beginning with the India-EU summit in New Delhi during the Republic Day celebrations.

New Delhi: High-level meetings with heads of state will be a key element of India's foreign policy this year, with New Delhi set to host a series of engagements beginning with the India-EU summit this month.

The India-EU summit, which could see the signing of the much-anticipated free trade agreement, will be followed by the AI Impact summit in February. Later in the year, India will host the BRICS summit. According to officials, New Delhi could also hold an India-Africa summit this year.

The India-EU summit will take place during the Republic Day celebrations in New Delhi, where the EU leadership has been invited as guests of honour. According to experts, AI summit could present New Delhi an opportunity to shape the agenda for the Global South instead of it being driven by the West or China.

The AI summit will be attended by the president of Brazil and the prime minister of Canada, among others. The French President is also expected to participate.

The BRICS summit will likely see participation from Russian President Vladimir Putin and Chinese President Xi Jinping. If Xi visits, it will be his first since 2019. ET has learnt that at the BRICS summit, India will press for reforms of multilateral institutions and push an inclusive agenda for the Global South.

Also in focus will US President Donald Trump's likely trip to India for the Quad summit this year which India is planning. In the runup to the summit, India and the US hope to conclude their much-anticipated trade deal. Experts say the trade deal and Trump's visit could help remove irritants in the relationship. The US will be hosting G20 summit later this year.

On the bilateral summits front, India will host its annual summit with Japan, while Russia will host the annual India-Russia summit.

The first woman prime minister of Japan is expected to travel to India for the summit, which will focus on increasing Japanese investments in India and consolidating critical technology partnerships.

Also being planned is the India-Nordic summit which will focus on economic partnership and mobility. It will be hosted by Norway.

Among the leaders visiting India in 2026 will be the German Chancellor and the Israeli prime minister.

22. 100% FDI in Indian Insurance: Transforming Financial Security and Global Capital Influx

ET Gov. 8 Jan. 2026

The transition to 100% FDI is the cornerstone of the ‘Insurance for All by 2047’ mission, promising a future where Indian consumers have more choices and the economy has the steady capital it needs to thrive.

The landscape of the Indian insurance sector has undergone a seismic shift with the landmark decision to permit 100% Foreign Direct Investment (FDI). This move, finalized through the Sabka Bima, Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, marks the final stage of liberalization for a sector that was once a state-controlled monopoly.

By opening the doors to full foreign ownership, India is not just looking for capital; it is looking to fundamentally redefine financial security for its 1.48 billion citizens. To understand the gravity of this change, one must look at the cautious, multi-decadal approach that India has taken toward foreign capital in insurance.

For decades following independence, the insurance sector was the exclusive domain of the public sector, where the Life Insurance Corporation (LIC) and General Insurance Corporation (GIC) were the sole providers, prioritizing social objectives over market competition. This changed in 2000 following the Malhotra Committee recommendations, which opened the sector to private players but restricted foreign partners to a 26% stake, forcing them into joint ventures with Indian companies.

Recognizing that the sector remained starved of funds, the limit was raised to 49% in 2015. While this brought in more capital, management control remained firmly with the Indian partners. A major shift occurred in 2021 when foreign companies were allowed to own a majority stake of 74%, paving the way for global giants to lead decision-making.

The recent 2025 amendment represents the final frontier, removing the partnership mandate entirely and allowing foreign insurers to establish wholly owned subsidiaries with 100% ownership and full operational autonomy.

What Does 100% FDI Mean Today?

The shift to 100% FDI is not merely a change in percentage. This represents a fundamental change in the structural philosophy of the Indian insurance market. Previously, global giants had to find a domestic partner to enter India, often facing friction over capital infusion, branding, and strategy.

With 100% FDI, foreign companies can now enter the market independently, much like they do in other liberalized economies such as Canada or Australia. Alongside the FDI hike, the government introduced the Composite License framework, which allows a single company to offer life, health, and general insurance products under one roof. This synergy is expected to create "super-insurers" capable of providing holistic financial protection.

To safeguard the economy, the 100% FDI allowance comes with a crucial mandate: insurers must invest 100% of the premiums collected within India, ensuring that while ownership may be foreign, the capital generated remains a driver for domestic growth.

The Impact

The influx of global players and capital is expected to catalyze several transformations, most notably bridging the massive protection gap. According to a recent IRDAI Report, India’s insurance penetration remains low at approximately 3.7% of GDP, significantly below the global average.

Global players, equipped with deep pockets, can afford the long-term gestation periods required to build networks in previously underserved Tier-2 and Tier-3 cities. Furthermore, foreign insurers bring advanced actuarial models and AI-driven underwriting that can revolutionize product innovation.

We can expect the rise of parametric insurance that pays out automatically based on specific triggers, such as rainfall levels, as well as usage-based motor insurance. This entry of more players will naturally lead to intensified competition, benefiting the end consumer through more competitive premiums and significantly improved customer service.

Furthermore, the insurance sector serves as a unique engine for the economy, generating long-term, patient capital. As the sector grows with foreign investment, it provides a massive pool of funds for the government to finance long-term infrastructure projects, such as highways and green energy, thereby reducing its reliance on external debt.

This expansion will also be a major employment generator, requiring a massive workforce ranging from data scientists to a localized army of agents. On a broader scale, a well-insured population contributes to the national financial stability.

When disasters strike, insurance prevents families from falling back into poverty, reducing the burden on the state exchequer for disaster relief. By increasing the insured percentage of the population, the government creates a more resilient social safety net that supports sustainable economic growth.

Challenges and the Path Ahead

While the move is overwhelmingly positive, it is not without challenges that require careful regulatory navigation to ensure its success. The Insurance Regulatory and Development Authority of India (IRDAI) will face the monumental task of supervising 100% foreign-owned entities, particularly regarding data sovereignty and preventing capital flight through complex, reinsurance deals.

There is also the risk that foreign firms might cherry-pick only wealthy urban segments, ignoring rural mandates. They must learn to "Indianize" their products to suit local sensibilities and diverse income levels. The transition to 100% FDI is the cornerstone of the ‘Insurance for All by 2047’ mission, promising a future where Indian consumers have more choices and the economy has the steady capital it needs to thrive.

(Saravanan is a professor of finance and accounting at IIM Tiruchirappalli and Williams is the Head of India at Sernova Financial)

23. Adani partners with Brazil's Embraer to make regional jets in India for first time: Report

ET, 8 Jan 2026

The Adani Group has partnered with Brazil’s Embraer to assemble Embraer’s regional jets in India, marking the country’s entry into the select group of nations with a commercial aircraft final assembly line. The move is a major boost to PM Modi’s Make-in-India programme. Details on the site, investment, and operational timeline will be announced at the Hyderabad air show.

Listen to this article in summarized format

Agencies

The Adani Group has tied up with Brazilian aerospace major Embraer to make in India the latter's popular regional jets, which are operated on short- to medium-haul routes with seating capacity ranging from 70 to 146 passengers, as per a report by Times of India.

With this move, India will soon join a select group of nations that have a final assembly line (FAL) for commercial fixed-wing aircraft.

ALSO READ: Embraer sees huge opportunities in Indian market, says executive

Last month, Adani Aerospace signed an MoU with Embraer in Brazil for the FAL, in the biggest boost for PM Modi's make-in-India programme in the aviation space, said TOI.

Details such as the site and investment for the proposed FAL and when it will get operational are not yet known. A formal announcement is expected later this month at the Hyderabad air show.

The Adani group last year in December said it plans to foray into engine MRO as well as passenger-aircraft-to-freighter (P2F) conversion.

"We have separated the two (aviation). One is the airport infrastructure and the other one is the aircraft services business. So that can include dual use, defence and civilian use. So, between Indamer and Air Works (MROs), we are now combining the platform into a single giant MRO company," Jeet Adani, Director of Adani Airport Holdings Ltd (AAHL), told PTI during an interaction last week.

A nudge for Airbus and Boeing?

“Several things are under consideration, including fiscal incentives for those ordering from this FAL. Like any new programme, the idea is to give incentives on a reducing basis as the orders grow, say, after every 50 orders placed,” an official told TOI.

Being the world’s fastest-growing aviation market with over 1,800 planes on order from airlines, including Air India group, IndiGo and Akasa, govt has been keen that global aerospace majors set up final assembly lines (FALs) for commercial aircraft in India.

With Embraer taking the lead, the government is looking at ways to incentivise customers who order from India’s first major commercial aircraft FAL. Its success and the presence of an ecosystem for assembling commercial planes, govt feels, will nudge the big two — Airbus and Boeing — to follow suit instead of just focussing on increasing their sourcing from the country, as per the TOI report.

Embraer eyeing India's aviation market

Embraer is looking to tap the "huge opportunities" in the Indian aviation market as its aircraft can provide competitive seat cost for the operators, a senior executive said in November.

Currently, Embraer, whose E-Jets began operations in India in 2005, has nearly 50 aircraft in the country serving the Indian Air Force, government agencies, business jet operators and commercial airline Star Air.

On October 17, 2025, Embraer inaugurated its office in Delhi as the company aims to strengthen its presence in the country's commercial aviation, defence, business aviation, services and support, and urban air mobility segments.

24. ‘In a Fragmenting World, India Backs Rules-based Global Economic System’

ET, 10 Jan. 2026

India will continue to support a cooperative and rules-based global economic system even as it strengthens domestic capabilities to protect national interests in a fragmenting world order, a top government official said.

ET Bureau

Delivering the first Bibek Debroy Memorial Lecture on the theme Indian Economy: A Story of Rising Credibility, Shaktikanta Das, principal secretary 2 to prime minister, said the global economy is at an inflection point, with geopolitical rivalries, protectionist trade policies and weakening multilateral institutions reshaping cross-border commerce and investment flows.

He said India is on the path to “Viksit Bharat” with “wind in its sails” due to the Centre’s policies.

Das acknowledged that there will will be headwinds and challenges emanating from “known and unknown” sources, but the economy remains resilient with macroeconomic stability as its bedrock.

“Traditional multilateralism, which once anchored global governance, is under severe strain,” Das said. Against this backdrop, India is recalibrating its economic and strategic posture, combining its commitment to multilateralism with a more pragmatic approach to partnerships and national resilience, the offficial noted.

“We acknowledge that the multilateral system must be revitalised, even as we adapt to new alignments,” he said.

Trade and supply chains, earlier viewed as neutral drivers of globalisation, are increasingly being deployed as strategic tools, Das said, while highlighting that restrictions on technology flow, labour mobility and access to critical inputs such as semiconductors, rare earths, energy and pharmaceuticals have heightened vulnerabilities, particularly for emerging economies.

While some realignment of supply chains is inevitable, he cautioned that excessive fragmentation could raise costs, reduce efficiencies and amplify economic volatility in emerging markets and the Global South.

India, he said, embraced “Atmanirbharta” (self-reliance) as a guiding policy framework to build domestic capacity in critical goods and technologies, reduce over-dependence on foreign suppliers. The approach, articulated by Prime Minister Narendra Modi in 2020, is not isolationist but aimed at strengthening India’s role in global value chains, he noted.

Atmanirbharta has two complementary dimensions—economic self-reliance and geopolitical autonomy—which enable the country to sustain growth while retaining strategic flexibility, Das said.

Growth Track

Das said the country is on track for a decade of accelerated growth, driven by a young, digitally-skilled workforce, expanding formalisation of the economy and homegrown innovations in AI, health and space. The Indian economy is projected to expand 7.4% in 2025-26.

25. EU clears path for landmark Mercosur trade deal amid mounting farmer protests across Europe

RuralVoice, Jan 10, 2026

The European Union has provisionally approved the EU–Mercosur free trade agreement, clearing the way for the bloc’s largest-ever trade pact. While the European Commission highlights export gains and reduced reliance on China, farmers across Europe are protesting, warning that cheaper South American agricultural imports could hurt livelihoods and undermine environmental and food safety standards.

Polish farmers agitating against the EU-Mercosur FTA.

The European Union has moved a decisive step closer to sealing its largest-ever free trade agreement after member states provisionally approved the signing of the long-delayed EU–Mercosur trade pact, even as coordinated farmer protests intensified across several European capitals, underscoring deep political and economic fault lines over the deal.

On January 9, EU governments gave the green light for the formal signature of the comprehensive partnership and trade agreement with the Mercosur bloc - comprising Brazil, Argentina, Uruguay and Paraguay - paving the way for a treaty that has been nearly two decades in the making. Once implemented, the agreement would create one of the world’s biggest free trade areas, covering a market of more than 700 million people.

Tariffs to go down

The agreement aims to dramatically reduce tariffs on both sides. Mercosur countries will eliminate duties on 91% of EU exports over up to 15 years, including steep levies of up to 35% on cars. In return, the EU will phase out tariffs on 92% of Mercosur exports over a period of up to 10 years. The deal also opens agricultural markets, with Mercosur removing high duties on EU wines and spirits, while the EU offers expanded import quotas for sensitive farm products such as beef, poultry, sugar, ethanol, rice and honey.

For the European Commission, the agreement is a cornerstone of its strategy to diversify trade ties at a time of heightened geopolitical tension. Officials argue that closer economic integration with South America will reduce the EU’s dependence on China, particularly for critical raw materials such as lithium used in electric vehicle batteries. The Commission estimates that the deal will remove more than €4 billion in tariffs on EU exports annually and give European companies access to public procurement contracts in Mercosur countries on equal footing with local firms - an unprecedented concession from the bloc.

Supporters, including Germany and Spain, also view the deal as a buffer against rising global trade uncertainty, including tariffs imposed by the United States. They stress that Mercosur already exports significant volumes of agricultural products to the EU and that existing imports demonstrate compliance with European standards.

Opposition from European farmers

However, the agreement has triggered fierce opposition from European farmers, environmental groups and several national governments, with protests escalating as the approval process advances. In France, farmers drove tractors into Paris this week, blocking key roads and staging demonstrations near government buildings. Similar protests have erupted in Belgium, Italy and parts of Eastern Europe, coordinated by farming unions who warn that the deal threatens their livelihoods.

Why farmers are furious

Farmers argue that increased imports of South American beef and poultry - produced at lower costs - will undercut EU producers already struggling with high input prices, climate pressures and stricter environmental rules. Although the additional imports represent a relatively small share of EU consumption - about 1.6% for beef and 1.4% for poultry - farm groups say even limited volumes could depress prices in an already fragile market.

Environmental organisations have also voiced strong concerns, accusing the EU of prioritising trade over climate commitments. While the agreement includes pledges to prevent further deforestation after 2030, critics say these provisions lack enforceable mechanisms. Groups such as Friends of the Earth have labelled the pact “climate-wrecking”, warning it could accelerate deforestation in the Amazon as Mercosur countries expand agricultural production for export.

Political opposition in EU

Political resistance within the EU has been significant. France, the bloc’s largest beef producer, has flatly rejected the agreement, arguing that it fails to adequately protect European farmers. Italy, Hungary and Poland had also expressed opposition, raising fears that the deal could be blocked. However, Italy softened its stance during final negotiations, allowing the agreement to clear the required threshold for provisional approval.

Precautionary measures by the EU

To win over sceptical member states, the European Commission has introduced a series of safeguards. Preferential access for sensitive farm products can be suspended if imports surge or prices fall sharply in one or more EU countries. The trigger threshold for intervention has been lowered from 8% to 5%, following pressure from Italy. The Commission has also pledged to tighten import controls, increase audits in exporting countries and examine closer alignment of production standards, particularly on pesticides and animal welfare.

In addition, the EU plans to deploy financial backstops to reassure farmers. A €6.3 billion crisis fund in the next EU budget could be activated if agricultural markets are disrupted, alongside the early release of €45 billion in farm support. The Commission has also announced cuts to import duties on certain fertilisers, whose costs have surged by up to 60% in recent years.

Despite these measures, opposition remains intense, and ratification is expected to be politically fraught. The agreement still requires approval by the European Parliament and, potentially, national parliaments, setting the stage for prolonged debate.

As Brussels pushes ahead, the EU–Mercosur deal has become a flashpoint in a broader struggle over the future of European agriculture, trade policy and climate responsibility—one that is likely to shape the continent’s political landscape well beyond the signing ceremony.

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AAPI

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Saturday, 17 January 2026

Newsletter, January 2026

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NEWSLETTER, January 2026

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