Development Watch – Week #3 Jan’26

Development News

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Budget 2026: Focus on Shipping sector

India’s shipping and ports sector is emerging as a key driver for economic growth. The shipping and ports sector can function as a “power-lifter” for the Indian economy. It supports manufacturing, exports, employment and strategic autonomy at a time of global uncertainty. Strategic investments in ports and shipbuilding are enhancing trade efficiency and logistics. The nation aims to boost its maritime capabilities, creating jobs and strengthening its position in global supply chains. Budget 2026-27 is expected to further accelerate this development. Nearly 95 per cent of India’s trade by volume and around 70 per cent by value moves through sea routes. Over the past decade, port capacity has expanded rapidly, with total handling capacity now exceeding 2,600 million tonnes per annum.

Railway reforms in 2026

The Indian Railways will aim for 52 reforms in calendar year 2026. These “52 Reforms in 52 Weeks” are aimed at systematic improvements in service delivery. Focus will be on Safety, AI and Advanced Tech use for better service to the passengers, and Talent and Training Revamp for better skilled workforce, among others. Railway Board said consequential train accidents have reduced by around 90% from 135 in 2014-15 to 11 in 2025-26. A food and catering upgrade is also in the offing. The Railways said major reforms for better food quality, catering, and onboard services will be undertaken.

2.3 millions in EV sales in the year 2025

India’s electric vehicle (EV) market has crossed a major milestone in 2025. Total EV sales have reached 2.3 million units, accounting for 8 per cent of all new vehicle registrations. This is according to the Annual Report: India EV Market 2025 prepared by the India Energy Storage Alliance (IESA) based on Vahan Portal data. India’s broader automobile market recorded 28.2 million vehicle registrations in 2025, with two-wheelers remaining dominant, accounting for over 20 million units (72 per cent of total sales). Among states, Uttar Pradesh emerged as India’s largest EV market in 2025, with more than 4 lakh EV units sold, accounting for 18 per cent of total EV sales. UP is followed by Maharashtra (12%), Karnataka (9%) accounting for 40% of national EV volumes.

Suzlon’s 30 years journey in renewable energy

Suzlon’s three-decade journey mirrors the evolution of India’s renewable energy ambitions. Founded in 1995 as a textile business that pivoted to wind power, the company grew rapidly to global prominence through landmark projects, a highly successful IPO and strategic acquisitions. After navigating financial headwinds and restructuring, Suzlon made a decisive return to its roots with an India-first strategy after exiting international markets in 2019. Strengthened by improved finances and renewed focus on domestic manufacturing, Suzlon now stands as a symbol of resilience, reinvention and India’s push towards a self-reliant, sustainable energy future.

Decline in sales of Construction Equipment

Sales of construction equipment in the domestic market fell 9 per cent to 81,566 units in the first nine months of this fiscal year due to slower infrastructure activity and project execution challenges, according to industry body ICEMA. Sales stood at 89,244 units in the corresponding period of the preceding year. The Indian Construction Equipment Manufacturers’ Association (ICEMA) said the exports of construction equipment rose to 12,469 units from 9,733 units during the period under review. While domestic sales reduced almost 9 per cent, exports grew 28 per cent, cushioning the overall industry decline to 5 per cent in the first nine months of FY26, indicating robust overseas demand and market diversification.

India-led ISA to keep working with 125 countries

International Solar alliance will work with 125 member nations to achieve its climate goals, even after US withdrawal from ISA and 66 UN organizations. Headquartered in Gurgaon, ISA is a collaborative initiative between India and France aimed at uniting efforts to combat climate change by implementing solar energy solutions. It was conceptualized on sidelines of COP21 in Paris in 2015. After an amendment in 2020 to its Framework Agreement, all UN Member states are eligible to join the alliance. The alliance will continue to work with member countries, particularly least developed countries and small island developing states, on the development and deployment of solar energy, mobilisation of finance, capacity building and reduction of risk perceptions. ISA programmes are operational in over 95 countries, supporting national pipelines, regulatory frameworks, and market creation.