Industry Updates for August 2026
E-way Bill Generation Rises 14.5% in June, Signals Strong Goods Movement
Generation of e-way bills under the Goods and Services Tax (GST) regime increased 14.5% year-on-year to 136.77 million in June 2026, reaching a four-month high. The figure was higher than 119.46 million recorded in June 2025 and marginally above 136.08 million generated in May 2026.
The latest data indicates continued momentum in domestic goods movement, supply chain activity and tax compliance. E-way bills are mandatory for movement of consignments valued above Rs. 50,000 and are considered an important indicator of economic activity.
Experts said the sustained level of e-way bill generation reflects resilience in domestic trade and increasing formalisation of the economy.
Harpreet Singh, Partner at Deloitte, said, “June’s e-way bill numbers point to sustained resilience in goods movement and steady GST compliance.”
Saurabh Agarwal, Tax Partner at EY India, attributed the trend to stable domestic demand and improved compliance processes.
The growth comes amid expectations that private consumption will remain a key driver of economic expansion during FY27.
GST Collections Rise 14% to Nearly Rs. 1.95 Trillion in June
Gross Goods and Services Tax (GST) collections increased 14% year-on-year to nearly Rs. 1.95 trillion in June 2026, supported by higher revenue from imports and domestic transactions.
Government data showed that domestic GST collections rose 6.5% to around Rs. 1.35 trillion, while revenue from imports increased sharply by 34.6% to Rs. 60,038 crore. After adjusting refunds of Rs. 32,436 crore, net GST collections grew 11.2% to over Rs. 1.62 trillion.
Tax experts said the collections indicate sustained economic activity and a stable revenue trend rather than being driven by temporary factors.
Ikesh Nagpal, Lead-Indirect Tax at AKM Global, said the strong growth in import-linked revenue reflected continued trade activity, while higher refunds showed that businesses were receiving liquidity support.
GST, introduced in July 2017, replaced multiple central and state taxes with a unified indirect tax structure. In the first quarter of FY27, gross GST revenue increased 8.4% to around Rs. 6.32 trillion.
Government May Introduce Separate Legal Framework for AI
The government is considering a dedicated legal framework for artificial intelligence, indicating a possible shift from its earlier approach of regulating AI through existing laws.
Speaking at a Confederation of Indian Industry event, Ministry of Electronics and IT Secretary S Krishnan said the government believes the time may have arrived to examine separate legislation for AI.
“We will look at AI regulation when the time is right. It appears the time is getting right and we will start,” Krishnan said.
Until now, the government has relied on existing frameworks, including the Information Technology Act, Digital Personal Data Protection Act and intermediary rules, to address AI-related concerns such as deepfakes, misinformation and online harms.
Countries globally have adopted different approaches, with the European Union implementing the AI Act, while other jurisdictions follow principles-based or sector-specific regulations.
India is also in discussions with the US government and Anthropic to gain access to advanced AI models as part of efforts to participate in trusted global AI ecosystems.
India’s E-commerce Market Expected to Reach $250 Billion by 2030
India’s e-commerce sector is projected to grow nearly three times to around $250 billion by 2030 from an estimated $90 billion in 2025, driven by increasing adoption of artificial intelligence across online retail operations.
A report by logistics platform Shiprocket and consulting firm Deloitte said AI-powered product discovery, personalised shopping experiences and smarter fulfilment systems are expected to shape the next phase of digital commerce growth.
The report highlighted the growing role of rural India, noting that businesses will need to develop inclusive and vernacular-focused digital commerce platforms. Rural users account for a significant share of India’s internet population, while Indic language content consumption and voice-based searches continue to expand rapidly.
Tier-II and Tier-III cities already contribute more than 60% of online shoppers, indicating the rising influence of smaller towns in digital retail growth.
Shiprocket Managing Director and CEO Saahil Goel said, “India’s e-commerce landscape is entering its next phase of growth, and technology will play a central role in shaping that journey.”
Odisha Plans Rs. 50,000 Crore Maritime Infrastructure Expansion
Odisha is planning a major maritime infrastructure push involving investments of around Rs. 50,000 crore, including development of a deepsea port and a shipbuilding cluster to strengthen its position on India’s eastern coastline.
Chief Minister Mohan Charan Majhi announced that a greenfield deepsea port is being developed at Bahuda in Ganjam district, while a shipbuilding cluster is planned in Kendrapara district. The projects are expected to enhance the state’s maritime capabilities and support India’s broader maritime security objectives.
Speaking at the 14th Multi-Agency Maritime Security Group (Policy) meeting, Majhi highlighted the growing connection between maritime security and economic development. He said Odisha’s long coastline and maritime heritage provide the state with an important role in India’s Indo-Pacific strategy.
The proposed projects are expected to create new opportunities in shipping, logistics, manufacturing and related sectors while transforming Odisha’s maritime ecosystem.
Government Tightens Rules for NGOs Receiving Foreign Funds
The government has introduced stricter compliance requirements for non-government organisations seeking access to foreign contributions under the Foreign Contribution Regulation Rules.
Under the revised framework, NGOs will have to register under one of five specified categories: social, economic, educational, cultural or religious. For the first time, separate activity lists have been defined for organisations operating under each category.
NGOs will now be required to disclose details of their activities, operational areas, websites, social media platforms and publications. They will also need to pay separate fees based on categories and locations of operation, replacing the earlier single-fee structure.
New registrations must comply with the updated rules immediately, while existing organisations have been given one year to align with the requirements. Violations may attract penalties, including a minimum fine of Rs. 1 lakh.
The Ministry of Home Affairs regulates foreign donations under the Foreign Contribution (Regulation) Act, 2010, which aims to ensure transparency and accountability in the receipt and utilisation of overseas funds.
Passport Fees Revised From July 1; Fresh Passport to Cost Rs. 2,500
The government has revised passport application fees across categories, with the new charges coming into effect from July 1, 2026. The changes have been introduced through amendments to the Passports Rules, 1980.
Under the revised structure, the fee for a fresh ordinary passport with 36 pages has increased from Rs. 1,500 to Rs. 2,500. The same charge will apply for reissue of a 36-page passport. The Tatkal fee for fresh or reissued 36-page passports has been raised to Rs. 5,000 from Rs. 3,500.
For passports containing 60 pages, the regular application fee has increased from Rs. 2,000 to Rs. 3,500, while Tatkal applications will now cost Rs. 6,000 compared with the earlier Rs. 4,000.
The Ministry of External Affairs issued the notification under provisions of the Passports Act, 1967, introducing the revised fee schedule. The updated rules also specify separate categories for adult applicants, minors aged 15-18 years and children below 18 years.
Amazon Plans Amazon Now Expansion to Over 300 Cities
Amazon is planning a major expansion of its quick-commerce service Amazon Now, with the company targeting availability across more than 300 cities in India. The announcement follows the recent expansion of the service to 100 cities.
The company said Amazon Now has emerged as one of its fastest-growing business units in India, with order volumes doubling every quarter since launch. The expanded network is expected to strengthen ultra-fast delivery capabilities and improve access to a wider range of products for customers across the country.
Samir Kumar, Country Manager, Amazon India, said, “Amazon Now is the fastest-growing ecommerce business unit in Amazon India’s history with orders having doubled every quarter since launch.”
The company also announced the launch of its “Sammaan” programme focused on delivery associate welfare, including health and wellness support, family education assistance and improved workplace safety.
Amazon said the expansion will further strengthen its presence in India’s rapidly growing quick-commerce market while supporting delivery partners who enable faster fulfilment.
ECLGS 5.0 Issues Over Rs. 1.55 Trillion Guarantee Cover
The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has provided guarantee support of more than Rs. 1.55 trillion to businesses impacted by disruptions arising from the West Asia geopolitical situation, according to the Finance Ministry.
The scheme has issued over 4.11 lakh guarantees, with MSMEs accounting for 98% of the total number of guarantees and 82% of the guaranteed amount.
The Finance Ministry said, “Since launch, 4,11,497 guarantees have been issued under ECLGS 5.0, with the guaranteed amount reaching Rs. 1,55,229 crore – a sign of the scheme’s rapid absorption across the lending ecosystem.”
Approved by the Union Cabinet on May 5, 2026, ECLGS 5.0 aims to provide additional credit support of Rs. 2.55 trillion to existing borrowers facing liquidity challenges due to external disruptions.
The scheme is expected to continue supporting businesses, particularly small enterprises, by improving access to credit and helping entrepreneurs manage cash flow pressures during periods of uncertainty.
PM Highlights India’s Manufacturing Push from Chips to Ships
Prime Minister Narendra Modi highlighted India’s growing manufacturing capabilities and the contribution of the Indian diaspora during his address at a community event in Melbourne attended by Australian Prime Minister Anthony Albanese.
Modi praised overseas Indians for strengthening their adopted countries while maintaining their connection with India. He compared their contribution to “sugar in milk”, saying they add value to societies where they live.
The Prime Minister also spoke about India’s defence capabilities and recent developments in the sector, including the BrahMos missile agreement with Indonesia. He said India’s defence ecosystem was gaining global recognition.
Emphasising India’s manufacturing ambitions, Modi said the country was creating new industrial ecosystems across sectors. “From chips to ships, new manufacturing ecosystems are being created in India,” he said.
He added that India’s growth benefits the global community and highlighted the country’s humanitarian assistance to nations affected by disasters. According to him, India’s support is based on humanity rather than nationality.
Government Clears Rs. 1.25 Lakh Crore Allocation for Semiconductor Mission 2.0
The government is set to approve an allocation of Rs. 1.25 lakh crore for India Semiconductor Mission 2.0 as part of efforts to strengthen the country’s chip manufacturing ecosystem.
The proposal, cleared by the Expenditure Finance Committee, will now be placed before the Union Cabinet for approval, according to sources.
The second phase of the semiconductor mission was announced in the Union Budget 2026-27 with the objective of expanding domestic capabilities across chip manufacturing, semiconductor equipment, materials, indigenous designs and related components.
The government aims to position India as a major semiconductor hub by developing a complete ecosystem covering technology, supply chains and skilled talent.
Union Minister for Electronics and IT Ashwini Vaishnaw has earlier said that the mission will focus on promoting domestic chip design, commercialisation of products, attracting ecosystem partners and developing specialised talent.
The initiative is expected to support India’s long-term ambitions in strategic technology manufacturing and reduce dependence on global semiconductor supply chains.
Engineering Goods Exports Rise 24.48% to Record $12.31 Billion in May
India’s engineering goods exports increased 24.48% year-on-year to a record $12.31 billion in May 2026, according to an analysis by EEPC India. The growth came despite disruptions caused by geopolitical tensions and challenges in global trade routes.
Exports to the West Asia-North Africa region increased 44.3% during the month to $2.06 billion, reflecting continued demand from the region despite ongoing uncertainties.
Engineering products accounted for 27.2% of India’s total merchandise exports in May. The growth was supported by shipments of electrical machinery, ships and floating structures, automobiles, iron and steel products.
Out of 34 engineering product categories, 28 recorded export growth during the month. North America, WANA and the European Union remained key markets for Indian engineering goods.
Among major destinations, the US continued to be the largest market, with engineering exports reaching $3.64 billion during April-May 2026, registering 7% growth over the previous year.
The performance highlights the resilience of India’s engineering export sector amid global economic and geopolitical challenges.
