India Last Week #41
A round-up of research & reportage on India across climate, energy, foreign policy, politics & more over the last week
Climate, Energy & Environment -
“Clouds over vast swathes of North India have caused abrupt dips in solar power production, raising worries about the stability of the power grid that serves millions of Indians. The national grid operator asked all electricity companies in February to be on alert mode and supply power to preserve the grid's stability, two people aware of the matter said… Grid frequency is a key indicator of the network's stability, and must remain within a tight band of 49.9-50.2 Hz to ensure that the grid functions smoothly. Sudden changes in power production or demand can disturb the frequency and potentially destabilize the grid, and in extreme cases, spark outages across vast areas. Grid frequency fell below safe levels several times in February, the two people said… In the past few years, fog and cloud cover in northern India have cast a shadow over solar power, which now accounts for over 20% of India's overall installed power generation capacity. In February last year, Mint reported that amid dense fog across north India in the winter season, solar power generation in the country witnessed an over 3% dip in January 2024.” Read more: Rituraj Baruah, Mint
“India’s electricity demand has grown significantly over recent years due to urbanization, economic growth, and industrial activity. In addition, peak demand for electricity has been increasing rapidly due to the growing reliance on air conditioning to meet cooling needs during summer months and beyond… The surge in electricity demand aligns with increased cooling needs. Air conditioning has become the primary driver, but other appliances like fans also contribute significantly. The cooling demand’s increase is especially pronounced in urbanized regions with more households using air conditioners, fans, and other appliances during heatwaves… Demand increases are most noticeable in urban centers where air conditioning usage is higher and where demand peaks align with heat waves. Conversely, rural areas with limited electricity access or affordability show a much lower temperature response, indicating a significant gap in adaptive capacity. Lower-income households lack access to cooling, limiting their ability to adapt to rising temperatures due to affordability constraints and inadequate electricity supply.” Read more: Climate Trends
“With technical support from UNESCO and other organisations, the Council of the Kochi Municipal Corporation (KMC) set up the think tank Centre for Heritage, Environment and Development (C-HED) in 2002. While there had been some efforts to develop a framework for waste management earlier, KMC sought a more holistic approach to tackle the increasingly complex challenges of sustainable development in a growing city… C-HED has developed a green building checklist, a crucial open-access resource for residential societies. Parts of this have been implemented in their ‘Sustainable Neighbourhood’ project, which combines renewable energy, nature-based sewage (NBS) treatment, and green infrastructure like cool and green roofs… Cities have a significant role in mobilising immediate action, said Shruti Narayan, Managing Director of Regions and Mayoral Engagement at C40, a global network of leaders of global cities to coordinate climate action. Narayan added that cities are pivotal in disaster preparedness as well. “The local authorities best understand future-proofing because if a disaster hits, they know which areas and populations are vulnerable,” she said. Narayan said that governance systems in India must mainstream climate and change the approach of looking at governance and climate action separately.” Read more: Divya Kilikar, Mongabay India
“India’s first hydrogen train is being manufactured by Chennai-based Integral Coach Factory (ICF). The hydrogen fuel train set will provide larger benefits in the direction of green transportation technology to support zero carbon emission goals as a clean energy source. In fiscal year 2023-24, the Ministry of Railways allocated Rs 2800 crore to develop 35 hydrogen fuel cell-based trains… While most countries have built hydrogen trains with capacities ranging from 500 to 600 horsepower (HP), India has achieved a breakthrough by creating an engine with a capacity of 1,200 horsepower (HP). This engine has the highest capacity in the world. The first hydrogen train has been allocated to the Northern Railway’s Delhi Division. It is likely to run on the 89-km-long Jind-Sonipat section.” Read more: Anish Mondal, Energy World
Economy -
“The Union government is likely to unveil a national deregulation commission by May this year to recommend a set of next-generation economic reforms aimed at easing rules, speeding up approvals, and dismantling barriers faced by businesses, especially smaller enterprises, an official with knowledge of the matter said. The proposed commission, being conceptualised by a task force led by Union cabinet secretary TVS Somanathan, will suggest policies to roll out an “ease of doing business 2.0” plan to crank up growth amid challenging global conditions, an official said on condition of anonymity… According to inputs prepared by the task force, states with less-onerous compliances for businesses and faster official clearances have been able to attract the most investments and clocked better growth and employment rates, added the official… “The faster economic growth that India needs is only possible if the Union and state governments continue to expand reforms that allow small and medium enterprises to operate efficiently and compete cost-effectively,” the Economic Survey had stated.” Read more: Zia Haq, Hindustan Times
“Activity in the country's manufacturing sector grew at its slowest pace in 14 months as production and new orders moderated but it still remained robust, a survey showed on Monday. The HSBC India Manufacturing Purchasing Managers’ Index (PMI) registered a reading of 56.3 in Feb, down from 57.7 in Jan, but still indicative of further improvement in the health of the sector. The 50-point mark separates expansion from contraction in the survey, which is compiled from responses to questionnaires sent to 400 manufacturing firms. The Feb data showed a forty-fourth consecutive rise in new business intakes, which panel members linked to strong client demand and efforts to price better than their competitors. The overall pace of growth receded to the slowest since Dec last year, but was above its long-run average… In response to the upturn in new orders, manufacturers continued to expand their workforce numbers in Feb, extending the period of employment growth to a year. The rate of job-creation was the second-best in the series history, behind only that recorded in January.” Read more: Times of India
“Amid global uncertainties and supply chain disruptions, prime minister Narendra Modi on Tuesday asked the industry not to be a mere spectator, but to take advantage of the opportunities by investing more… The Centre is now nudging states to improve the business climate to attract private investment to make India a global manufacturing hub and make it part of supply chain. India remains a growth engine for the global economy and has proven its resilience in challenging situations, Modi said pointing out that disruptions in the supply chain affect the global economy, and the world needs units that produce high-quality products and ensure reliable supplies… He highlighted that in 2020, the government made a significant decision to revise the definition of MSMEs after 14 years, which eliminated the fear among MSMEs that they would lose government benefits if they grew. He noted that the number of MSMEs in the country has increased to over 60 million, providing employment opportunities to crores.” Read more: Financial Express
“As US tariffs deter the entry of Chinese goods, China will likely redirect these shipments to other markets, potentially dumping them elsewhere. This may reduce India’s relative competitiveness in global markets. If China resorts to currency devaluation as a growth stimulus strategy—like it did in the 1990s—it could further displace demand for export products from its competitors like India… For India, specifically, these developments present both challenges and opportunities. The space vacated by countries directly targeted by US tariffs could be captured by Indian exports. Despite being a labour-abundant country, India has increasingly shifted toward capital-intensive production and exports. We now have a chance to aggressively expand labour-intensive production, particularly in sectors like textiles. A four-pronged strategy could help us capitalize on this opportunity: expedite free trade agreements, reform labour regulations, strengthen raw material ecosystems and create large special economic zones with comprehensive infrastructure. Additionally, both domestic and international trade costs in India would need to be brought down significantly.” Read more: Prachi Mishra, Mint
Foreign Policy & Security -
“Trump does not see India as a big power in the same league as China and Russia. India has to be careful and ensure that it does not come to be seen as a convenient pawn for the US in the big power game. One expects that while the Quad (comprising India, Japan, Australia and the US) will continue to play a role in the Indo-Pacific, it may no longer be a strategic component of an American determination to retain its dominance in the region, but as a tactical bargaining tool vis-a-vis China. India must be alert to this shift. It will be prudent for India to remain out of harm’s way by maintaining a friendly relationship with Trump’s America, being accommodating on lesser issues while quietly resisting on more critical ones. India must develop much closer relations with Europe, with countries in East and Southeast Asia and most importantly with its own sub-continental periphery, which may become a zone of strategic vulnerability. The ideological affinity which Trump shares with PM Modi is an asset for Delhi in handling a complicated relationship with Washington. But Trump’s great power vision does not align with India’s preference for a multipolar world order.” Read more: Shyam Saran, Indian Express
“Belgium-based John Cockerill Defense, one of the world’s top turret-making companies, has tied up with an Indian firm to manufacture, assemble and commission the critical component for the Indian Army’s Indian Light Tank (I.L.T) programme, Project Zorawar. The company has formed a 60:40 joint venture with Indian firm Electro Pneumatics & Hydraulics (India) Pvt Ltd to manufacture turrets in Chakan, Pune. This will be the first time that the Belgium company will set up a manufacturing facility for turrets outside its country. The DRDO and private firm L&T have come up with the Zorawar light tank, which is currently undergoing tests in-house… Under Project Zorawar, the Indian Army will buy 59 light tanks if found satisfactory, and then L&T will compete with other firms for a larger order. The initial demand of the Army is roughly 350 light tanks to take on the Chinese in the mountainous borders.” Read more: Snehesh Alex Philip, ThePrint
“In a move that could level the playing field for private defence firms, the Ministry of Defence (MoD) will expand the use of competitive bidding in procuring weapons and systems for the armed forces. This would be particularly for the equipment where Indian private industry has established capacity, Defence Secretary Rajesh Kumar Singh told Business Standard. This is part of the government’s ongoing shift from nomination, or the practice of directly awarding procurement contracts to public-sector entities without a tendering process. Industry insiders estimate that a substantial share of the production of defence public sector undertakings (DPSUs) is secured through nomination. Private defence firms have long viewed a shift away from this practice as key to ensuring a more level playing field.” Read more: Bhaswar Kumar, Business Standard
“Children of H1-B visa holders who migrated to the United States as minors and are set to turn 21 are facing an existential dilemma. They can no longer be considered dependents of NRI parents (H-4 visa holders). US policy so far had given them two years to opt for a new visa status after 'ageing out', but recent changes in the immigration rules and court cases have left them worried about the provision being struck out. Their fear: Being forced to 'self deport' to India - a country that they are barely familiar with - or living as ‘outsiders’ in the US. According to data from March 2023, nearly 1.34 lakh Indian children were expected to age out of dependent visa status before their families obtained green cards… Some of these youth are also considering moving to other countries like Canada or the UK, where immigration policies are seen as more inclusive… The massive backlog in the US employment-based green card system, which disproportionately affects Indian immigrants, is a serious concern among this section of youth.” Read more: Amisha Rajani, Times of India
“Ukrainian Foreign Minister Andrii Sybiha could visit India this month, with planning already underway for it. The visit comes as the war in Ukraine is in its 3rd year and at a time when it has taken a new direction in the aftermath of the White House spat between President Volodymyr Zelensky and US President Donald Trump along with Vice President JD Vance, followed by European leaders’ summit in London and direct talks between Americans and Russians in Riyadh. During the expected Delhi visit, the Ukrainian foreign minister will hold talks with External Affairs Minister Dr S Jaishankar… Last year, the then Ukrainian Foreign Minister, Dmytro Kuleba, visited India from March 28-29, 2024, which was the first Ukrainian foreign ministerial visit to India in decades. The visit was significant as it was the first by a senior Ukrainian official to India since the start of the war in 2022.” Read more: Sidhant Sibal, WION
People & Politics -
“The BJP-Shiv Sena-NCP government, headed by Eknath Shinde, launched the cash transfer scheme in August with a massive budgetary allocation of Rs 35,000 crore for 2024-’25. The scheme promised Rs 1,500 per month to women between 18 years and 65 years – as long as their annual family income was below Rs 2.5 lakh, they did not benefit from other government welfare schemes, were not permanent government employees and did not own a four-wheeler. But, with an eye on the high-stakes Assembly polls, the government initially ignored the eligibility requirements and made cash deposits to almost every woman who had applied for the scheme. Former chief minister Eknath Shinde even promised to increase the amount to Rs 2,100 if voted to power… But after the elections, as the fiscal burden of the scheme – Rs 43,380 crore a year – becomes apparent, the state government’s enthusiasm for the cash transfer scheme is waning… There is also widespread confusion over whether the government wants back the money it has already transferred to women who did not meet the eligibility requirements. Moreover, as the scheme drains the Maharashtra government’s finances, beneficiaries of other welfare schemes are feeling the pinch.” Read more: Tabassum Barnagarwala, Scroll
“On March 4, Dhananjay Munde, Maharashtra’s Food and Civil Supplies Minister and an influential Nationalist Congress Party (NCP) leader, resigned from his post in Mumbai after an 80-day-long media and public outcry brought out disturbing evidence in the Santosh Deshmukh murder case, a sarpanch from Massajog village in Beed district. Photographs attached to the charge sheet—which were widely circulated on March 3—allegedly show Munde’s supporters desecrating Deshmukh’s body… A caste angle further complicated the murder. Deshmukh was Maratha, while all the accused are from the Vanjari (semi-nomadic, OBC) community. Dhananjay Munde is also a Vanjari. Beed district is part of Marathwada, which, along with neighbouring Jalna, has been the epicentre of the Maratha vs OBC tensions for the past 18 months… Dhananjay Munde was known to be close to Ajit Pawar and instrumental in the latter’s rebellion against his uncle, Sharad Pawar. It is said that Patel, Tatkare, and Munde planned and executed Ajit Pawar’s defection. Munde’s ties to both Ajit Pawar and Fadnavis had helped him for the past 15 years, but as public pressure mounted, they too recognised their limitations and distanced themselves.” Read more: Amey Tirodkar, Frontline
“In a rare display of unity, most political parties across Tamil Nadu came together for an all-party meeting called by Chief Minister M K Stalin at the State Secretariat on Wednesday to oppose the delimitation of Parliamentary constituencies, which is due in 2026. In a six-point resolution, the parties asked the Centre to extend the 1971 Census-based delimitation framework for another 30 years beyond 2026, to ensure fair representation for states that have effectively controlled their population. It is unjust to reduce Tamil Nadu’s parliamentary representation only because it has effectively implemented population control measures in the national interest, the resolution said… Besides the ruling DMK, the Congress, AIADMK, Left parties, Viduthalai Chiruthaigal Katchi and the Tamilaga Vetri Kazhagam also attended the meeting. The BJP, Naam Tamilar Katchi and Tamil Maanila Congress stayed away… The resolution demanded that if the total number of Lok Sabha seats is increased, Tamil Nadu must receive a proportionate increase in constituencies based on the 1971 Census. While stating that Tamil Nadu is not against delimitation in principle, it demanded a clear constitutional amendment ensuring that southern states are not unfairly penalised in the seat redistribution process.” Read more: Arun Janardhanan and Nikhila Henry, Indian Express
“An investigation into the human trafficking network operating from India has unearthed the involvement of thousands of local agents and at least 150 Canadian colleges that facilitate illegal entry into the US, Enforcement Directorate. Some 4,000 to 4,500 trafficking agents are active in the country, 2,000 of them in Gujarat alone, an ED official told The Telegraph… “Investigations have revealed that nearly 2,000 agents or ‘partners’ in Gujarat, involved in smuggling Indians into the US via Canada, are still active and in touch with syndicate members in Canada,” the ED official said. He said the central agency had identified some of the agents and was carrying out raids to arrest them. The scam works this way, he said: the Indian agents get their clients admitted to Canadian colleges — many of them located close to the US border — on student visas. Once these migrants reach Canada, they illegally cross the US-Canada border… The ED’s probe is linked to the death of four members of a family — including two children — from Dingucha village in Gandhinagar, Gujarat, who froze to death while trying to cross the US-Canada border in January 2022.” Read more: Imran Ahmed Siddiqui, The Telegraph
Tech -
“Indian telecom giants Reliance Jio and Airtel have urged the government to ensure fair competition in the satellite communications sector as it finalises decisions on licensing and spectrum allocation for Elon Musk’s Starlink, The Times of India reported. The telcos have called for satellite operators to be charged ‘comparable’ spectrum fees to avoid what they describe as ‘market distortions’. In a representation to the government, the telcos criticised the Telecom Regulatory Authority of India (Trai) for not addressing the disparity between satellite and terrestrial spectrum allocation… Jio and Airtel have expressed concerns about low-earth orbit (LEO) mega-constellations, arguing that their broadband speeds and capacity rival those of terrestrial networks… Elon Musk's Starlink, a satellite broadband service, is set to enter India. However, its entry has sparked debates over spectrum allocation and regulatory policies. Starlink’s technology relies on low earth orbit (LEO) satellites to provide internet, making it ideal for remote areas lacking traditional infrastructure. With thousands of satellites in operation, it has the potential to enhance India’s connectivity.” Read more: Rimjhim Singh, Business Standard
“Rahul, whose last name has been withheld by Rest of World because he feared repercussions, regularly posts photos of his wares on WhatsApp groups that he joined through publicly accessible links or started himself… Hordes of sellers like Rahul are contributing to the “thriving” illegal firearms marketplace that has emerged on WhatsApp in India, according to research conducted by Digital Witness Lab — a Princeton University center that builds tools to investigate social media platforms — which was shared exclusively with Rest of World. The trade appears to be rampant even though Meta’s policies prohibit the sale or advertisement of firearms, and India has among the strictest legislations around gun ownership in the world. Such exchanges may be in violation of the law… Between April 2024 and January 2025 — a timeframe that included the country’s general elections last year — Digital Witness Lab’s researchers found more than 8,000 messages advertising firearms across 234 WhatsApp groups in India.” Read more: Yashraj Sharma, Rest of World
“Indian starup Mintoak, which provides merchant payment services to lenders, said on Tuesday it has bought Digiledge, marking the first acquisition in the nascent central bank digital currency space in a deal that sources said was worth around $3.5 million. The Reserve Bank of India started a pilot for the CBDC, or e-rupee, a digital alternative to physical currency, in December 2022, and last April, it expanded the scope of transactions to payment firms from having limited it to just banks initially. PayPal and HDFC Bank backed Mintoak has completed the acquisition of Digiledge, which specialises in CBDC and bill payments services, said two sources aware of the matter, declining to be identified as they are not authorized to speak with the media.” Read more: Ashwin Manikandan, Reuters
Bonus -
“India has long prided itself as the “pharmacy of the poor”, supplying affordable pharmaceuticals to poor nations across the globe. It is the world’s third largest pharmaceutical producer by volume and the single largest producer of generic drugs, supplying over 20 percent of global generics exports. This reportedly includes half of the generic drugs in Africa, and 90 percent of pharmaceutical imports in The Gambia… The deaths in The Gambia and elsewhere revealed two grave crises in global health. The first is the state of India’s poorly regulated pharmaceutical industry, and how this Indian malaise imperils the health and the lives of people in much of the poor world. The second is the shocking inequality of standards in pharmaceutical manufacturing and trade for the world’s rich and poor countries, exposing profound racial fault-lines within the global health order. Even now, more than two years later, the deaths of more than a hundred children from consuming toxic Indian-made cough syrups have failed to spur any comprehensive action by Indian or global health authorities. A court in Uzbekistan has sentenced 23 people, including an Indian national, to prison terms in response to the deaths there.” Read more: Vidya Krishnan and Arshu John, Himal Mag
Watch/Listen -
Can 'Made In India' and 'America First' Co-exist? | Bloomberg Television