Industry News for July 2026

World Bank Approves $1.5 Billion for Private Sector Job Reforms in India

The World Bank has approved $1.5 billion in financing to support structural reforms in India aimed at fostering private sector-led job creation and boosting economic growth. The funding is part of the Boosting Job Creation in the Private Sector Development Policy Financing (DPF) Operation.

The programme is expected to generate employment opportunities for 11 million young Indians entering the workforce over the next two decades. It builds on reforms in tax simplification, trade integration, regulatory enhancements, and improving the business environment.

The DPF will support initiatives to lower barriers to entrepreneurship, enhance labour market participation – particularly among women – streamline trade and investment processes, and increase access to capital for businesses. In November 2025, the government consolidated 29 labour laws into four comprehensive Labour Codes to simplify compliance, modernise outdated provisions, and improve efficiency while protecting workers’ rights.

India Surpasses UK as Sri Lanka’s Second-Largest Export Partner

India has overtaken the United Kingdom to become Sri Lanka’s second-largest export market during January-April 2026, according to the Sri Lanka Export Development Board. The US continues to hold the top position as Sri Lanka’s largest export destination.

Exports to India increased by 8.9 percent to USD 364.15 million during the period, although April saw a marginal year-on-year decline of 1.41 percent. Overall, Sri Lanka’s total exports, including merchandise and services, rose 6 percent year-on-year to USD 1,380.93 million in April 2026.

Merchandise exports reached USD 1,063.77 million, a 9.87 percent rise, while services exports stood at USD 317.16 million. Analysts highlight that India’s growing demand for Sri Lankan goods and closer trade ties have strengthened the bilateral economic relationship. This marks a significant milestone for Sri Lanka, reflecting its diversification strategy and expanding Asian trade focus.

India’s Defence production hits Record Rs. 1.78 Lakh Crore

India’s defence production reached an all-time high of Rs. 1.78 lakh crore in FY26, reflecting a 15.6 percent increase from Rs. 1.54 lakh crore in the previous fiscal year. This marks a remarkable 110 percent growth since 2020-21, when production stood at Rs. 84,643 crore, according to the defence ministry.

Defence Minister Rajnath Singh credited the rise to coordinated efforts by the Department of Defence Production and various stakeholders. He emphasized that enhanced private sector participation, supportive policies, and growing export capabilities are key drivers.

“This upward trajectory highlights the expanding defence industrial base in India. With continuous policy support, new initiatives, and investment in manufacturing capabilities, the sector is poised for further acceleration in the coming years,” Singh added. Analysts view this growth as critical to India’s strategic autonomy and global defence export ambitions.

India Climbs to Fifth in Global Digitalisation Rankings

India has become the fifth most digitalised economy in 2026, surpassing Germany, France, Japan, and Canada, according to the ICRIER-Prosus State of India’s Digital Economy report. The CHIPS index evaluates connectivity, digital adoption, innovation, protection, and sustainability.

India ranks fourth in artificial intelligence adoption, behind the US, China, and Singapore, supported by its large talent pool and 26% share of global AI users. Despite this, private AI investment and compute infrastructure remain limited, highlighting the need for greater capital mobilisation.

The report notes that India’s long-term competitiveness depends on enhancing compute access, strengthening university-startup linkages, and developing AI commercialisation pathways. Rapid adoption of digital infrastructure, AI, and online services has helped the country emerge as a regional leader, enabling innovation, technology-driven growth, and expanding participation in the global digital economy.

India Emerges as Global Leader in Ship Recycling with 35% Market Share

India’s share of global ship recycling rose to 35.4 percent in 2025 from 30.1 percent in 2024, according to the Ministry of Ports, Shipping and Waterways, citing UNCTAD data. Total ship recycling in India reached 2.99 million gross tons (GT), marking a nearly 60 percent increase from the previous year.

This achievement enables India to meet the Maritime India Vision 2030 target of becoming the world’s leading ship recycling nation well ahead of schedule. The government has undertaken several initiatives to strengthen the ecosystem, including compliance with the Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships, ratified in 2019.

Financial assistance of Rs. 53.5 crore has been provided to modernise 115 ship recycling facilities, making them HKC-compliant. These reforms, coupled with ease-of-doing-business measures, have helped India secure a leading global position in the ship recycling industry.

India’s Merchandise Exports Grow 15% Amid Global Challenges

India’s merchandise exports rose by approximately 15 percent during April-June 14, 2026, despite global economic uncertainties, Commerce and Industry Minister Piyush Goyal said. The Ministry will release formal export-import data for June on July 15.

The growth comes even after tariffs imposed by the US on Indian goods. Exports reached USD 45.2 billion in May 2026, a six-month high, while the trade deficit widened to USD 28.21 billion. During April-May, exports increased 16.09 percent to USD 88.91 billion, and imports jumped 15.14 percent to USD 145.35 billion.

Goyal encouraged chartered accountants to contribute towards India’s ‘Viksit Bharat’ vision, highlighting the importance of starting with local initiatives in North Mumbai and promoting cleanliness alongside business development. He emphasised that holistic efforts are key to sustaining economic growth and trade momentum.

NSE Files DRHP for India’s Largest Rs. 30,000 Crore IPO

The National Stock Exchange (NSE) has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for a proposed Rs. 30,000 crore initial public offering (IPO), nearly a decade after its first attempt.

Unlike typical IPOs, this issue is primarily a value-unlocking exercise. Existing shareholders will sell a portion of their holdings in an offer-for-sale (OFS), while NSE itself will not receive proceeds. The proposed IPO includes up to 148.9 million equity shares with a face value of Rs. 1 each.

This IPO represents a major step toward public market valuation for NSE, creating liquidity for shareholders and offering investors a chance to hold a stake in India’s largest stock exchange. The DRHP filing was submitted on June 17, marking the start of the regulatory process for this record-setting IPO.

GST Collection Rises 3.3% in May to Rs. 1.67 Trillion

India’s Goods and Services Tax (GST) collection increased 3.3 percent year-on-year in May 2026, reaching Rs. 1.67 trillion after accounting for refunds. The gross mop-up rose 3.2 percent to Rs. 1.94 trillion.

The modest headline growth was weighed down by a high base effect from a one-time Rs. 10,000 crore spectrum payment made by a telecom operator in May 2025. Excluding this payment, gross GST collections grew 9 percent year-on-year, while net collections, post refunds, rose 10.1 percent.

Growth was primarily driven by import-linked revenues. Gross GST from imports surged 19.1 percent to Rs. 59,654 crore, and net customs revenue increased 19.7 percent to Rs. 49,403 crore. Domestic GST collection, however, fell by 2.6 percent gross and 2.3 percent net. The data indicate sustained revenue mobilisation despite mixed trends across sectors.

Meta to Build India’s First AI-Powered Data Centre with Reliance

Facebook parent Meta has partnered with Reliance Industries to construct its first AI-driven data centre in India, a 168-megawatt facility located in Jamnagar. The centre will be leased by Meta, which will cover energy and water costs.

The project strengthens India’s position in the global AI infrastructure ecosystem, joining investments by Microsoft, AWS, Google, and OpenAI. Microsoft’s Hyderabad data centre will be one of the largest in Asia Pacific, while Airtrunk announced a $30 billion plan to develop 5 GW of capacity in India by 2030.

According to Cushman & Wakefield’s 2026 report, India now ranks as the second-largest digital infrastructure market in Asia Pacific, with 1.6 GW operational capacity and 3.1 GW under development. The Jamnagar facility reflects rising enterprise demand, accelerating AI adoption, and the strategic importance of India in global cloud and AI deployment.

India and Nepal Launch Cross-Border Digital Remittance

India and Nepal have launched a peer-to-peer cross-border remittance mechanism to facilitate seamless money transfers for travellers and businesses. Operational since June 6, 2026, the system links India’s Unified Payments Interface (UPI) with Nepal’s National Payments Interface (NPI).

The initiative enables real-time transfers via mobile banking apps and digital wallets, eliminating the need for physical currency exchange and high foreign exchange fees. NPCI International Payments Limited (NIPL) and Nepal Clearing House Limited (NCHL) executed the integration.

Finance ministry officials stated that the system promotes financial inclusion, strengthens economic ties, and benefits local merchants by providing immediate access to Indian visitors’ spending. UPI is now accepted in nine countries, including Singapore, UAE, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka, and Cambodia, enhancing cross-border digital payments. The mechanism is expected to boost remittances and simplify transactions for small businesses.

Services Sector’s Share in Exports Nears 49% in FY26

India’s services sector continues to gain prominence, accounting for 48.8 percent of total exports in FY26, up from 33.8 percent in 2014-15, according to Commerce Ministry data. This growth has been driven by IT services, global capability centres, and a shift to digital service delivery post-pandemic.

Overall exports, combining goods and services, surged from USD 468 billion in 2014-15 to USD 863 billion in 2025-26. Software services contributed over 40 percent of services exports, while professional and management consulting emerged as the second-largest segment.

The sector grew at a compound annual growth rate (CAGR) of 9.3 percent over the last 12 years, demonstrating resilience and global competitiveness. Merchandise exports also rose from USD 310 billion in 2014-15 to USD 442 billion in 2025-26, reflecting balanced growth in goods and services and positioning India as a global trade leader.

Microfinance Sector Shows Early Signs of Recovery

The Indian microfinance industry has demonstrated signs of recovery after a prolonged period of contraction, according to the Micro Finance Industry Network (MFIN) report for Q4 FY26. The sector witnessed a sequential uptick of over 3 percent, ending seven consecutive quarters of portfolio decline.

As of March 31, 2026, the total industry portfolio stood at Rs. 3,25,174 crore. Quarterly disbursements reached Rs. 77,524 crore, marking the highest level in the past seven quarters, though still below Q4 FY24’s peak.

Alok Misra, CEO and director of MFIN, noted that the gradual improvement in portfolio performance, coupled with continued decline in Portfolio At Risk, signals a turning point. Analysts are optimistic that this momentum could foster greater stability and investor confidence in microfinance lending, especially for semi-urban and rural borrowers. The sector is increasingly benefiting from focused risk management and digital loan monitoring solutions.

India Ranks Fifth in Global Digitalisation Index

India has emerged as the fifth most digitalised economy globally in 2026, moving up from eighth place in 2025, according to the State of India’s Digital Economy (SIDE) report by the ICRIER-Prosus Centre. The CHIPS-Combined Index evaluates countries across connectivity, digital adoption, innovation, data protection, and sustainability.

The report highlights rapid adoption of AI, expansion of digital public infrastructure, and increased online service delivery as key drivers of India’s rise. The global digital order is now increasingly tripolar, with the Indo-Pacific region becoming a counterbalance to traditional North Atlantic dominance led by the US and Europe.

Analysts note that India’s position reflects accelerated technology adoption in both public and private sectors, a vibrant start-up ecosystem, and increased digital literacy. The report projects continued gains for India in global digital competitiveness, enhancing opportunities for innovation, trade, and economic growth.

Mazagon Dock to Anchor Rs.29,000 Crore Shipbuilding Cluster in Andhra Pradesh

State-owned Mazagon Dock Shipbuilders is set to become the anchor investor in a mega shipbuilding cluster at Dugarajapatnam, Tirupati district, Andhra Pradesh. Officials confirmed that company representatives will soon visit the site to assess feasibility and initiate planning.

The Andhra Pradesh government and Visakhapatnam Port Authority have already formed a special purpose vehicle (SPV) for the project, which will have a capacity of 1.2 million tonnes. Total investment is estimated at Rs. 29,253 crore, with the government providing Rs. 5,289 crore for land and marine infrastructure. Mazagon Dock will develop the core shipbuilding cluster, contributing Rs. 23,964 crore.

Additionally, the state plans to invest around Rs. 2,000 crore to create supporting infrastructure. The project is part of the Centre’s commitment to enhancing industrial development in Andhra Pradesh and aims to boost domestic shipbuilding capacity, attract private investment, and create significant employment opportunities in the region.

Maruti Launches RD-Backed Auto Loan for Small Car Buyers

Maruti Suzuki India has introduced a recurring deposit (RD)-linked auto loan scheme, “Suhana Safar,” to assist small-car buyers who struggle with down payments. The scheme enables customers to build savings and showcase repayment discipline before availing loans.

The initiative, launched in collaboration with AU Small Finance Bank, targets four small-car models: Alto K10, S-Presso, Celerio, and Wagon R. Customers deposit a fixed monthly sum into an RD account for three to six months, typically around 80% of the expected EMI. Upon maturity, the accumulated funds serve as a down payment, after which the standard car loan begins.

According to Partho Banerjee, senior executive at MSIL, the scheme provides financial planning flexibility and makes vehicle ownership more accessible. It also benefits the bank by offering insights into borrowers’ financial behaviour, reducing credit risk and promoting disciplined repayment practices among first-time small-car buyers.

India’s Goods Exports Maintain Strong Momentum in May

India’s merchandise exports grew by an estimated 15% in May 2026, continuing the positive trend seen in April. The crude refining sector benefited from elevated global oil prices, while non-petroleum exports rose 11%, according to government sources.

In April, exports reached $43.6 billion, the highest monthly level in over four years, up 13.8% year-on-year. Imports increased at a moderate pace of 9.9% to $71.9 billion, widening the trade deficit to $28.3 billion. Officials noted that other industries beyond petroleum also contributed to export growth.

The government anticipates further gains from the first phase of a bilateral trade agreement with the US once Section 301 investigations conclude, removing temporary 10% tariffs from July 24. The growth demonstrates India’s resilience amid global uncertainties, and officials see it as a key driver in achieving higher foreign exchange inflows and supporting overall economic expansion.

Govt Pushes Ministries to Act on PSU Closures

Despite the Modi government approving the closure of over 40 unviable public sector units (PSUs) years ago, only Rajasthan Drugs and Pharmaceuticals has been shut down to date. The government has urged ministries to accelerate closure plans and not delay further, following a recent review of PSU sales and liquidation processes.

The Union Cabinet had cleared closure guidelines back in June 2018, ensuring that land from shut PSUs could be used for affordable housing and employees would receive voluntary retirement benefits at 2007 notional pay scales. However, bureaucratic inaction has delayed progress, leaving employee dues unsettled and land unused. The Public Enterprises Survey reported that, by 2024-25, 75 central PSUs were on the closure, liquidation, or non-operational list, compared with 72 the previous year, with only a few approvals executed.

Supreme Court Upholds GST on Online Gaming Transactions

The Supreme Court ruled that online gaming platforms, including fantasy sports with real-money stakes, are liable for a 28% Goods and Services Tax (GST). The three-judge bench led by Justice Pardiwala determined that these platforms are suppliers of “actionable claims,” and taxation cannot be restricted to just platform fees or gross gaming revenue.

The decision clarifies that amounts staked by users, prize pools, and winnings are all taxable. Legal experts suggest the verdict effectively nullifies the government’s ban on certain online games and may impose significant tax liabilities on operators struggling to generate revenue. Parliament had enacted the Promotion and Regulation of Online Gaming Act in August 2025, restricting real-money gaming, which had led most companies to shut down or pivot.

India-UK Social Security Agreement to Save $500 Million Annually

The India-UK Double Contribution Convention (DCC), effective July 15 alongside the Comprehensive Economic and Trade Agreement (CETA), will exempt Indian professionals working temporarily in the UK from paying social security contributions there for up to five years. This move is expected to save Indian companies and employees around $500 million annually.

The exemption applies only to employees of Indian companies in the UK, not those working for other foreign entities. Beneficiaries must provide certification of social security contributions in India. Approximately 75,000 professionals, mainly in IT and ICT sectors-including Tata Consultancy Services, Infosys, Wipro, HCLTech, and Tech Mahindra-stand to gain, preventing dual contributions that previously yielded no substantial benefits under UK law.

West Bengal Government Tables Rs. 4.38 Lakh Crore Budget

West Bengal Finance Minister Swapan Dasgupta presented a Rs. 4.38 lakh crore budget for FY27, focusing on industrial growth, infrastructure, and economic revival. Key initiatives include supporting the revival of the 118-year-old Calcutta Stock Exchange, building a new greenfield airport near Kolkata, and constructing three additional airports across the state.

The budget also allocates Rs. 5,000 crore to incentivise fresh investment and boost regional development. Plans include expanding existing airports, establishing a thermal power plant under a public-private partnership model, and improving transportation and industrial infrastructure. These measures aim to reinstate West Bengal’s position as a major economic hub while facilitating industrialisation and tourism.