The Union Cabinet, led by Prime Minister Narendra Modi, on Friday approved the "Samudra Manthan" National Offshore Exploration Scheme, a major initiative worth ₹84,084 crore aimed at strengthening India's offshore energy sector. The programme, to be implemented by the Ministry of Petroleum and Natural Gas (MoPNG), will remain in effect until 2030-31.

Designed to unlock India's offshore hydrocarbon resources, the scheme focuses on expanding exploration through advanced seismic surveys, data processing and interpretation, as well as faster exploration drilling in deepwater and ultra-deepwater regions. It also includes scientific drilling in unexplored sedimentary basins, development of shared offshore production and evacuation infrastructure, and the creation of an integrated Oil and Gas Manufacturing and Services Zone.

According to the government, Samudra Manthan represents a significant milestone in strengthening India's energy security. It is expected to boost domestic oil and gas exploration, encourage technological innovation, and contribute to the broader vision of Viksit Bharat by enhancing the country's self-reliance in the energy sector.

Beyond exploration activities, the scheme provides dedicated support for digital programme management, skill development, adoption of modern technologies, stakeholder collaboration, and global outreach. These measures are intended to build a comprehensive ecosystem that accelerates offshore exploration and production across the country.

Officials estimate that the initiative could help add more than 600 million tonnes of oil equivalent (MTOE) to India's reserves. It is also expected to increase offshore exploration activity, raise domestic crude oil and natural gas production, generate employment opportunities, strengthen indigenous manufacturing capabilities, and promote the growth of offshore technology and service industries. The programme is also likely to attract substantial investments throughout the exploration and production value chain, creating long-term opportunities for businesses while supporting innovation and economic expansion.

Industry experts believe the initiative reflects the government's strong commitment to revitalising India's exploration and production (E&P) sector. By reducing geological risks and improving access to reliable exploration data, the scheme could pave the way for new hydrocarbon discoveries and encourage greater participation from private investors.

Rajnish Gupta, Partner in the Tax and Economic Policy Group at EY India, said the emphasis on shared production and evacuation infrastructure is particularly significant. He noted that such infrastructure can improve the commercial viability of offshore projects by lowering development costs, making even smaller discoveries economically feasible. According to him, this approach will support India's efforts to reduce its dependence on energy imports while building a stronger and more resilient energy ecosystem.

The approval of Samudra Manthan comes as part of a broader series of reforms undertaken by the government in the upstream oil and gas sector. These measures include opening nearly all offshore acreage for exploration, updating the legal and contractual framework governing exploration activities, and enhancing the National Data Repository to improve access to geological information for investors and exploration companies.

Disclaimer: This image is taken from Bloomberg.

India's semiconductor industry is moving into a new phase of growth as the government officially launches the India Semiconductor Mission 2.0 (ISM 2.0) with a financial outlay of ₹1.27 lakh crore. Ministry of Electronics and Information Technology (MeitY) Secretary S Krishnan described 2026 as a “landmark year” for India’s chip manufacturing ambitions while speaking at the CII Conference on Advancing Atmanirbharta in Semiconductor Design and Manufacturing.

Krishnan said the latest phase of the semiconductor mission reflects India’s growing determination to build a self-reliant electronics ecosystem and reduce dependence on global supply chains. He added that the government’s semiconductor push is now moving beyond individual manufacturing units and towards developing a complete industry ecosystem. Highlighting the progress achieved under ISM 1.0, Krishnan said three semiconductor facilities inaugurated by Prime Minister Narendra Modi — including Micron’s semiconductor unit, Tata’s plant in Sanand, and the CG Power facility — have already entered commercial production. Two more semiconductor units are expected to become operational before the end of the year, while 12 additional projects approved under the India Semiconductor Mission are currently in various stages of development.

He also noted that India’s chip design ecosystem has gained momentum, with 15 out of the 24 companies approved under the Design Linked Incentive (DLI) scheme securing venture capital funding. The development, according to him, indicates increasing investor confidence in India’s semiconductor design capabilities. The Union Cabinet recently approved ISM 2.0 along with a separate mobile phone manufacturing programme, together involving an investment commitment of around ₹1.90 lakh crore. Krishnan said the decision came after detailed consultations with industry stakeholders and reflects the government’s long-term commitment to strengthening India’s electronics manufacturing sector.

Under ISM 2.0, the government will continue to focus on establishing semiconductor fabrication plants, Assembly, Testing, Marking and Packaging (ATMP) facilities, and Outsourced Semiconductor Assembly and Test (OSAT) units. Building on the three fabs currently being developed under ISM 1.0, India aims to add four to five more facilities, including a logic semiconductor fab, memory chip manufacturing unit, display facility, and multiple compound semiconductor plants.

Advanced packaging technology will also remain a major priority. According to Krishnan, eight advanced packaging units are already being developed under the first phase of the semiconductor mission, with three of them having started production. A major shift under ISM 2.0 will be the government’s broader ecosystem approach. Unlike the first phase, which focused mainly on manufacturing capacity, the new programme will also support industries involved in semiconductor equipment, materials, specialty gases, chemicals, and precision manufacturing. India is also exploring partnerships with countries such as Japan to strengthen capabilities in areas requiring advanced technology and high-purity materials.

Krishnan said India is studying successful global semiconductor research models, including Europe’s IMEC, research initiatives in the United States, and Singapore’s A*STAR framework, to develop its own semiconductor research ecosystem. While India is currently focusing on mature and legacy chip technologies due to cost considerations and its early stage in semiconductor manufacturing, the country aims to gradually move towards advanced chip technologies.

Skill development remains one of the biggest challenges for India’s semiconductor ambitions. Although India contributes around 20 per cent of the world’s semiconductor design workforce, the country still lacks enough experienced professionals for semiconductor fabrication and packaging operations. Krishnan said developing manufacturing expertise will be a key priority in the coming years. The government is also restructuring the Design Linked Incentive scheme under ISM 2.0 to include larger companies along with startups and MSMEs. Krishnan said the earlier funding limit of ₹50 crore was not sufficient for large-scale chip design projects. The revised model will introduce a co-investment approach, allowing government funding to attract private capital while investment decisions are driven by market potential.

Highlighting the importance of trusted semiconductor supply chains, Krishnan referred to the CCTV camera sector, where security concerns over imported chip components led to new sourcing requirements. He said two companies supported under the DLI scheme are now developing chips for CCTV systems in partnership with Indian manufacturers, creating a model that could be expanded to other sensitive industries. Krishnan cautioned that building a globally competitive semiconductor industry requires patience and sustained investment. He pointed out that countries like Taiwan took nearly six decades to establish leadership in semiconductor manufacturing, while India’s focused efforts have been underway for only about five years.
He emphasized that continuous collaboration between the government and industry over the next decade or more will be crucial for India to become a significant player in the global semiconductor market. The government is expected to showcase further developments and provide more details about ISM 2.0 during Semicon India in September, where updates on new semiconductor projects and manufacturing capabilities will also be highlighted. With large-scale investments, expanding infrastructure, and a focus on design, manufacturing, research, and talent development, India’s semiconductor journey is entering a critical stage that could shape the country’s role in the global technology supply chain.
Disclaimer: This image is taken from ANI.

For millions of salaried Indians, the feeling that their income has not grown much over the last few years is now backed by official data. Income tax filing records reveal that India’s formal middle class has expanded dramatically over the past decade, but the average salary of people within this group has barely increased. The latest analysis of Income Tax Return Statistics for FY13 and FY23 highlights a major transformation in India’s economy — more people are entering the formal tax-paying workforce, but salary growth for existing workers has remained limited.

While India’s nominal GDP grew at an annual rate of around 10.5% during the decade, total salary income reported by individuals increased at a much faster pace of nearly 16% annually. However, the average salary of individual taxpayers grew by only about 6.5% per year, showing that much of the increase came from a larger number of earners rather than significant income growth for existing taxpayers.

A closer look at the numbers shows that India’s middle-income group has become the biggest beneficiary of economic formalisation. When the middle class is defined as individuals earning between ₹10 lakh and ₹50 lakh annually in salary income, the size of this group has expanded sharply. Its contribution to total salary income increased from just over one-fourth in FY13 to nearly half by FY23.

A decade ago, people earning below ₹10 lakh annually accounted for nearly two-thirds of total salary income. Over time, many workers moved into higher income categories, reducing the dominance of the lower-income segment. The rise of the middle class is mainly a story of expansion rather than higher earnings. The number of taxpayers in the ₹10 lakh to ₹50 lakh salary bracket increased nearly seven times during the decade, but the average salary within this group remained almost unchanged.

The average salary for this category increased only slightly from ₹16.86 lakh in FY13 to ₹17.33 lakh in FY23. This means that despite the sharp increase in the number of people entering the middle-class income group, individual salary growth remained extremely weak. After adjusting for inflation and taxes, the actual improvement in purchasing power becomes even smaller. The rapid growth of this segment can largely be linked to two factors — upward movement of workers from lower salary brackets and the expansion of formal-sector employment. As more businesses moved into the organised economy and more workers entered payroll-based jobs, the number of salaried taxpayers increased significantly.

This formalisation is a positive development because a larger middle class usually supports economic growth through higher consumption, investment, and demand for goods and services. However, the data also points to a challenge: workers have not gained enough bargaining power to push wages higher despite the growth of formal employment.

The tax records also challenge the common perception that high-income earners have become significantly richer through salary growth. Individuals earning above ₹50 lakh annually actually saw their average salary income decline by around 10% over the decade. This happened because the number of taxpayers in the highest income group increased rapidly, while total salary income did not rise at the same pace. As more people entered this category, the average income per person fell. Similar trends were visible in other income sources, where the overall pool expanded but average earnings did not necessarily increase.

One of the most surprising findings from the data is the performance of the lowest salary-income group. Individuals earning below ₹10 lakh annually recorded the strongest average salary growth among the three categories. Their average salary increased from ₹3.87 lakh in FY13 to ₹5.10 lakh in FY23, representing a growth of around 32% over the decade. Although the increase was not enough to eliminate financial pressures, it was higher compared with the middle-income and high-income groups.

The broader picture emerging from the tax data is that India’s income growth story is largely being driven by expansion in the number of formal workers rather than rapid salary increases for individuals. The country is creating more salaried jobs, bringing more people into the tax system, and expanding the middle class. But for long-term economic growth, the next challenge will be ensuring stronger wage growth.

If salaries fail to rise meaningfully, consumer spending could eventually slow down. Since household consumption is a major driver of India’s economy, weak wage growth could affect business growth, investment, and job creation. For India’s middle class, improving earning potential will depend heavily on skills, productivity, and career mobility. Workers may need to continuously upgrade their skills, explore better opportunities, and adapt to changing job markets to achieve stronger income growth. India’s middle class has undoubtedly grown in size, but the next phase of economic progress will depend on turning that expansion into better salaries, stronger purchasing power, and greater financial security for ordinary workers.
Disclaimer: This image is taken from Hindustan Times.

India's engineering goods exports recorded a robust 21% year-on-year increase in June, reaching $11.48 billion, driven by healthy demand from key markets such as China, the United States, Germany and Oman, according to the Engineering Export Promotion Council (EEPC) India. The strong performance comes despite ongoing concerns over shipping disruptions in the Red Sea and Strait of Hormuz, which have increased logistics costs and affected global trade routes.

Among the standout markets, exports to China surged 74% compared to the same month last year, rising to $361.47 million. India's total exports to China also grew by nearly 37% during the financial year ending March, touching around $20 billion, reflecting strengthening trade ties in several engineering segments. The continued growth in engineering shipments has helped cushion India's overall merchandise exports at a time when exporters are facing rising freight charges, higher insurance premiums and longer transit times due to geopolitical tensions affecting major maritime corridors.

During the April-June quarter of FY2026-27, engineering exports reached $34.14 billion, marking an 18.09% increase over $28.91 billion recorded in the corresponding period last year. The sector contributes more than one-fourth of India's total merchandise exports, making it one of the country's most important export industries.

The United States remained India's largest destination for engineering products in June, with exports valued at $1.95 billion. Meanwhile, exports to Oman expanded more than fourfold, reaching nearly $259 million, highlighting growing demand from West Asian markets. Government estimates cited by EEPC India show that engineering goods accounted for 28.4% of India's total merchandise exports during June, underlining the sector's significant contribution to the country's export performance.

EEPC India Chairman Pankaj Chadha said the engineering sector has demonstrated resilience despite disruptions caused by the ongoing crisis in West Asia and the Middle East. He noted that engineering exports have consistently remained above $10 billion per month during the first three months of the current financial year, while stressing that continued policy support from the government would be important to sustain this momentum amid evolving global risks. Export growth was recorded across most regions in June, although shipments to the United Arab Emirates and Saudi Arabia declined. However, the sharp rise in exports to Oman helped ensure that overall engineering exports to the West Asia and North Africa (WANA) region remained in positive territory. India also registered a recovery in exports to Turkey, reversing the decline witnessed last year.

The export expansion was broad-based, with 27 out of 34 engineering product categories posting year-on-year growth in June. However, a few segments—including lead and lead products, internal combustion engines, cranes and lifts, and office equipment—recorded lower exports compared to the previous year. The sector's strong performance reflects resilient global demand for Indian engineering products despite challenging international trade conditions.
Disclaimer: This image is taken from Business Standard.

On the July 13 edition of Open For Business, Andrea Heng and Hairianto Diman spoke with Mel Siew, Head of Asia Public Credit at Muzinich & Co., to examine the latest market trends. The discussion covered the resilience of Asian credit markets, growth opportunities in AI infrastructure, and the potential inflationary impact of rising oil prices on the global economy.

Disclaimer: This podcast is taken from CNA.

On the 2 July episode of Open For Business, Andrea Heng and Hairianto Diman sit down with Lorraine Tan, Morningstar's Director of Equity Research for Asia, for an in-depth analysis of the markets.

Disclaimer: This podcast is taken from CNA.

In a world increasingly dominated by digital wallets and quick online payments, cash is often viewed as outdated. Yet, for many people — from elderly citizens concerned about digital scams to families making everyday purchases at hawker centres — physical money remains a dependable and familiar way to pay. Andrea Heng and Hairianto Diman explore the importance of creating a payment ecosystem that remains accessible and inclusive for all. They speak with Wong Wanyi, FinTech Leader at PwC Singapore, about the role of cash in a rapidly changing financial landscape.

Disclaimer: This podcast is taken from CNA.

A decade after the Brexit referendum, the United Kingdom is again facing a leadership transition, with the departure of Prime Minister Keir Starmer set to bring the country its seventh prime minister in just over 10 years. This frequent turnover reflects the ongoing political instability linked to the long-term effects of the Brexit. As nominations open on 9 July and a new prime minister is expected by September, analysts are examining what this latest leadership crisis reveals about Brexit’s lasting impact on British politics and governance, including insights from political analyst Alexander Hilton of Skystamper.
Disclaimer: This podcast is taken from CNA.