Development Watch – Week #4 May’25

Development News

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India takes up 4th spot as largest economy

India’s economy jumped from 11th position in 2014 to 4th spot in 2025. It is mainly due to policy changes and swift decision-making. Union Minister for Rural Development and for Agriculture and Farmers Welfare recently launched ‘Vikas Bharat Sankalp Padyatra’ in Vidisha in Madhya Pradesh and expressed confidence in further progress of the nation. Initiatives such as Make in India, Digital India, the growth of startups and increasing agricultural output are driving the expansion of India’s economy. Kalash Yatra of Jal Jeevan Misison was also organized to create awareness regarding water conservation.

Raja Khas is Himachal’s first solar model village

Raja Khas is a village located in the Indora sub-division of Kangra District in Himachal Pradesh. It has earned the distinction of becoming Himachal’s first solar model village. While chairing the meeting of the District-level Coordination Committee (DLCC) under PM Surya Ghar Muft Bijli Yojana, the Deputy Commissioner announced that Raja Khas is among top-performing village among 43 short-listed villages in Kangra District. The government will provide a grant of Rs. 1 Crore for solar development in Raja Khas. It will set a model for green energy adoption in rural areas. A Model Solar Village Implementation Agency has been nominated to prepare a DPR for a fully solar-powered settlement. Implementation of the scheme is being handled by Himachal Pradesh State Electricity Board Ltd. key components of the scheme include Central Financial Assistance (CFA) for domestic consumers, solar energy saturation in government buildings, incentives for local bodies, and the development of Adarsh Urja Grams (Model Energy Villages).

3x growth in India’s RE capacity in 10 years

India’s renewable power capacity has surged threefold in the last decade. It has reached 232 GW, driven by significant growth in solar and wind energy. Solar module manufacturing has skyrocketed, transforming India into a global leader with ambitious targets for 2030. The nation is also expanding bio-power generation and compressed biogas production, aiming for energy self-sufficiency and reduced import dependence. In 2014, India had almost zero domestic production of solar cells and wafers. Today, India has built a strong foundation with 25GW of solar cell production and 2GW of wafer production. Bio-power generation capacity has increased by 42 per cent from 8.1 GW to 11.5 GW over the last 10 years. Compressed Biogas (CBG) sector expanded from a single project with 8 tonnes per day (TPD) CBG generation capacity in 2014 to 150 projects with a cumulative capacity of 1,211 TPD in 2024.

Mining & Construction sector to reach $45 Billion

India’s mining and construction equipment sector is poised for significant growth. A new report projects the sector will reach USD 45 billion by 2030. This represents a 19% CAGR. The Confederation of Indian Industry (CII) and consulting Kearney have collaborated on the Vision 2030 report. It aims to position India as a global manufacturing hub. The mining and construction sector is a key enabler of infrastructure, energy, and industrial growth. It commands a USD 18 trillion global market and contributes 16% to global GDP. India is the fastest-growing market among the top six global MCE markets, with a CAGR of 12 per cent over the past five years. The expansion of the MCE sector is projected to contribute over USD 100 billion to India’s economy by FY30. It will add 20 million jobs directly or indirectly.

Railways employees felicitated for Operation Sindoor service

Over 200 employees of operating and commercial department of Northern Railway’s Jammu Division were felicitated here for providing excellent service during Operation Sindoor. Senior Divisional Commercial Manager, Jammu Division, handed over certificates to 209 employees at a special programme organized by the railways in their honour for their duties with dedication. All the trains were operated by the Operating Department as per their scheduled time and the Commercial Department helped the passengers to reach their destinations safely during the tense situation. Many reserved special trains were also operated in the Jammu division to facilitate the stranded passengers to return. For Indian Army soldiers, special attention was paid to ensure their reservation on priority, arrangement for stay at the station and seating during travel in trains.

Sinking of Cargo ship near Kerala leads to oil spill threat

The Kerala government has declared a statewide emergency after the MSC ELSA 3, a Liberian container ship carrying 640 containers, including 13 hazardous ones, capsized and sank off the state’s coast. This has raised concerns about a potential ecological disaster. In response to the incident, a high-level meeting chaired by the Chief Secretary resulted in the issuance of a statewide alert. Coastal districts have been warned of possible environmental consequences. Fishermen are advised to stay ashore, while the public is cautioned against touching or approaching any drifting containers or oil slicks that may appear on the beaches. The sinking of the Liberian vessel MSC ELSA 3 occurred on May 25, 2025, after it developed a critical 26-degree tilt, also known as a “starboard list,” while en route from Vizhinjam to Kochi. The Indian Coast Guard has confirmed a “significant oil leak” and has deployed vessels such as ICGS Saksham, Samarth, and a Dornier aircraft equipped with oil dispersants to manage the spill.

Drop in accidents with Traffic Management Systems (ITMS)

The Intelligent Traffic Management System (ITMS) has helped reduce the number of accidents on the Mumbai-Pune Expressway. It has witnessed fewer casualties in the last 4 months against the Samruddhi Expressway, where 55 deaths were reported. As per the Maharashtra highway police’s data sourced by PTI, the Mumbai-Pune Expressway witnessed 10 fatal crashes resulting in 11 casualties from January to April this year. Under the system, 17 violations such as over-speeding, illegal parking, wrong entry, driving without a seat belt, using mobile phones while driving, and lane-cutting are monitored using advanced surveillance cameras and automated systems. The ITMS has proved a deterrent and helped control over-speeding, which is one of the major causes of accidents and fatalities. Operational for over two decades, the 95-km Mumbai-Pune Expressway – officially named Yashwantrao Chavan Expressway – is India’s first access-controlled, six-lane expressway.

UP Government to invest on ring roads and bypasses

The Uttar Pradesh government is set to invest Rs 6,124 crore in the construction of ring roads, bypasses, and flyovers across the state. The Public Works Department (PWD) has prepared a blueprint that outlines road connectivity expansion for the financial year 2025-26 with 62 projects in all. Priority will be given to high density regions and those with heavy vehicular movement. Various types of industrial parks are being developed across the state, with factors like freight movement and road connectivity in consideration. In the current financial year, the PWD will build 62 bypasses and ring roads with priority in areas having a population of over one lakh. Municipalities and councils connected already with national highways will not be included in this plan. In those areas, the construction of bypasses and ring roads will be carried out by the National Highways Authority of India (NHAI).

Maruti’s training program at ITIs for EV adoption

Maruti Suzuki India has initiated a training program which focuses on high voltage systems for electric and hybrid vehicles. This program spans 130 Industrial Training Institutes (ITIs) across India. The initiative aims to prepare technicians for the growing EV market. Maruti Suzuki has invested Rs 3.9 Crore in the initiative. The company plans to train over 4,100 students annually. Maruti Suzuki India has also entered into an alliance with Standard Chartered Bank for inventory funding for its dealers. The training programme prepares future automotive technicians to safely and efficiently handle high-voltage electric systems, addressing industry needs as the number of such vehicles increases in the overall car park. This would also improve customers’ confidence in after sales support. Maruti Suzuki plans to launch its first EV known as e-Vitara in September 2025. Majority of the production in the first year is expected to go to overseas markets.

Commercial real estate for GenZ requirements

Indian real estate developers are adapting to Gen Z’s aspirations, particularly in tier II and III cities. Fueled by infrastructure development and a skilled workforce, these regions are witnessing a surge in demand for modern amenities and tech-enabled workspaces. Developers are investing heavily to cater to this evolving market, anticipating significant growth in India’s office sector. Luxury cafes, fine dining restaurants, gaming centres, salons, malls and exhibition centres are booming in Tier 2 and Tier 3 cities. There is a growing demand for such amenities. Commercial real estate sector is undergoing a generational transformation for the tech-savvy, environmentally conscious and entrepreneurial GenZ. According to the India Brand Equity Foundation (IBEF), the real estate sector shows promise with a projected 9.2 per cent CAGR from 2023 to 2028.

Electric buses for Indian cities

The Centre will give about 4500 electric buses to Bengaluru, 2000 to Hyderabad, 2800 to Delhi, 1000 to Ahmedabad and 600 to Surat under the PM’s e-Drive Scheme. The announcement followed the meeting on the rollout of electric buses under the PM e-Drive Scheme. The PM e-Drive initiative aims to deploy 14,028 electric buses with a total financial outlay of ₹10,900 crore over a two-year period from April 2024 to March 2026. The scheme represents one of the world’s largest national efforts to electrify public transport at scale. The Ministry of Heavy Industries remains committed to timely delivery, operational readiness, and strategic partnerships with all participating states. The states include Telangana, Karnataka, Delhi and Gujarat.