Development Watch – Week #2 June’25

Development News

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India in top 10 global cross-border investment for land development

India has emerged among top global destinations for cross-border real estate investments, ranking seventh worldwide. Fueled by strong macroeconomic fundamentals and pro-investment policies, India’s real estate sector witnessed a 31% year-on-year growth in institutional investments in Q1 2025. Diversification into residential, life sciences, industrial, and warehousing segments is attracting increased foreign investor interest. While the office sector remains the most sought-after across APAC, interest in industrial, retail, and emerging asset classes is gaining pace.

Cabinet clears Railway projects for Jharkhand, Karnataka, Andhra Pradesh

To boost railway infrastructure and regional connectivity, the Union Cabinet has approved two multitracking projects. The Koderma–Barkakana doubling in Jharkhand and the Ballari–Chikjajur doubling in Karnataka and Andhra Pradesh. According to Union Railway Minister, the work will be completed within the next three years. Together, the plan will expand the Indian Railways network by 318 km, at a total estimated cost of Rs 6,405 crore. Both lines are critical for passenger and freight movement and will significantly reduce carbon emissions while enhancing operational efficiency. It will also benefit both tribal communities and the general population. The Koderma–Barkakana (Arigada) doubling project, spanning 133 km, has been approved at a cost of Rs 3,063 crore. This line forms the shortest rail connection between Patna and Ranchi and is vital for intercity travel and logistics. It will benefit 938 villages and a population of about 15 lakh. The Ballari-Chikjarur covers a 185 km stretch is critical for moving key commodities such as iron ore, coking coal, steel, fertilizers, petroleum products and food grains.

Extreme poverty in India down to 5.3%

India’s extreme poverty rate declined sharply to 5.3% over a decade from 27.1% in 2011-12 even as the World Bank revised upwards its threshold poverty line to USD 3 per day. In India, the report said, 54,695,832 people lived on less than USD 3 per day in 2024. Thus, the poverty rate at USD 3 per day (2021 PPP – percentage population) is 5.44% in 2024. The extreme poverty rate decreased from 16.2 to 2.3% between 2011-12 and 2022-23, while the poverty rate at the lower middle income country (LMIC) line declined by 33.7 percentage points, according to the World Bank. India has lifted 171 million people from extreme poverty in the decade between 2011-12 and 2022-23. Additionally, the current account deficit for India is expected to average around 1.2% GDP over FY26-28. It will remain adequately financed by capital inflows adding that foreign exchange reserves are projected to remain stable around 16% of GDP.

Recovery driven by rural demand and government spending

Morgan Stanley’s Gokul Laroia believes Indian market recovery hinges on government spending and rural demand revival. He anticipates continued US dollar weakening. Laroia notes global investors were cautious about India but that sentiment is shifting. He acknowledges India’s valuations are high but justified by earnings growth and ROE. US Treasury yields are a concern due to the rising fiscal deficit. In India, the market recovery is entirely a function of the revival of government spending and rebound in rural demand. Even if you don’t see 7.5% persist, but say, 6.5% real GDP growth and 10-10.5% nominal-that’ll provide a lot of support to the markets.

Kakatiya Rural Innovation Centre set up from BITS Pilani Donation

BITS Pilani has announced the establishment of the Kakatiya Rural Innovation, Technology and Implementation Centre (KRITI-Centre). It will enable students and alumni to create meaningful social impact across India and beyond. The centre will be set up with the help of an endowment contribution of $1 million from BITS Pilani alumni Raju Reddy and his wife Neerja Reddy. Both of them are deeply involved in rural development initiatives. The KRITI-Centre is poised to significantly expand BITS Pilani’s engagement in the social impact sphere, building upon the legacy of successful alumni-led initiatives such as Sattva, Nirmaan, Thinkerbell Labs, and Ashoka Changemakers.

Projects worth Rs. 24,000 Crores approved for Delhi

Delhi Chief Minister said the Centre has approved several projects worth Rs 24,000 crore to streamline traffic and reduce pollution in Delhi and its adjoining areas. This includes a 5 km tunnel between Shiv Murti-Mahipalpur (Dwarka Expressway) and Nelson Mandela Road (Vasant Kunj). The tunnel will be constructed by the National Highways Authority of India (NHAI) at an estimated cost of Rs 3,500 crore. The tunnel will significantly ease traffic congestion on Rangpuri, Dhaula Kuan, Rao Tula Ram Marg, and National Highway 48 (NH-48).

India ranked 3rd in building dry cargo vessels

India has achieved 3rd rank in building cargo vessels for European trade. This success is attributed to the Maritime Amrit Kaal Vision 2047. The Maritime India Vision 2030 aims for holistic maritime sector development. Port capacity and efficiency have improved. Capital expenditure in the sector has also increased. Around 75 port development projects have been awarded. The Maritime India Vision (MIV) 2030 provides a comprehensive framework for the holistic development of India’s maritime sector, encompassing ports, shipping, and waterways. MIV 2030 outlines 150 initiatives aimed at propelling India to global maritime leadership. Over the past three years, there has been a 37% increase in the Capital Expenditure to Rs 7,571 crore in Financial Year 2024 (from Rs. 5,527 crore in Financial Year 2022) by Ministry of Ports, Shipping and Waterways.

Brazil’s Embraer to step up jet production

Brazilian plane-maker Embraer is looking to increase production rate of its commercial planes to 120 a year from 73. Airlines are calling for competition to end the Boeing-Airbus duopoly. Embraer is the third-largest aircraft manufacturer behind Boeing and Airbus. It manufactures regional planes with capacities ranging from 50 to 132 seats. Embraer sees opportunities in India in commercial and business jets, as well as military aircraft. It is ready to set up a final assembly line if it secures a large order from the country’s airlines.