Development Watch – Week #2 April’26

Development News

---

44% of Rural land controlled by top 10% households

The top 10 per cent rural households of India own 44 per cent of land, while 46 per cent of rural ghouseholds are landless, according to a working paper released by World Inequality Lab. The World Inequality Lab (WIL) is a research laboratory based primarily at the Paris School of Economics (PSE). The paper, titled ‘Land Inequality in India: Nature, History, and Markets’, further said that the top 5 per cent households own 32 per cent of land, while 18 per cent of rural land ownership is held by the top 1 per cent. The average village land Gini (an index measuring landholding inequality on a scale of 0-100) reaches 71 when landless households are included, and 46 per cent of rural households are landless. The paper noted that agricultural productivity is strongly associated with higher land inequality.

India’s solar capacity to go 4x, wind to go 3x

India is set for a massive renewable energy boost. Solar power capacity is expected to quadruple, and wind energy capacity to triple over the next decade. This will significantly reduce the nation’s reliance on coal for electricity. Non-fossil fuel capacity will reach 786 GW by 2035-36. Solar energy will form the largest part of this clean power mix. Nuclear capacity is expected to triple to 22 GW ‌during that period, while large hydro-electricity capacity is seen ​rising by ​50% to ⁠77 GW. India’s pumped storage hydropower capacity is projected to surge 13-fold to 94 GW, and battery storage capacity will hit 80 GW by 2035-36 from 0.27 GW currently, the document showed. India has achieved a record 6.05 GW of wind capacity in FY26. This marks the highest annual addition, pushing total wind power past 56 GW. Gujarat, Karnataka, and Maharashtra led the growth. Government support and open access have driven this expansion. This achievement is crucial for India’s renewable energy goals and its 2030 target.

6-years construction timeline for National Highway projects

The ministry of road transport and highways has significantly revised upwards the timeline for construction of national highways in the country to up to 6 years. It is based on the cost of the project, terrain, volume and structural complexities. It is against the existing provision under which a maximum of 30 months is given for completion of road project bigger than 50 km length or a major bridge more than 200 metre. The Ministry has capped the base construction period to 30 months for projects with civil cost greater than Rs 1500 crore. These normative construction periods will be applicable for all national highway projects to be bid out either on engineering, procurement, construction (EPC) mode, hybrid annuity model (HAM) or built-operate-transfer (BOT) mode on or after May 6, 2026.

Impact of Iran war on Indian aviation sector

The ongoing geopolitical conflicts in West Asia are beginning to exert a measurable impact on India’s aviation sector, affecting both airlines and airports through rising fuel costs, operational disruptions, and revenue uncertainties. nearly 20 per cent of global jet fuel supply is linked to the Middle East, making the region critical for aviation economics. As a result, volatility in fuel prices has once again emerged as the most significant cost factor for airlines. The report advises aviation stakeholders to adopt scenario-based planning and diversify revenue streams, particularly by strengthening cargo operations and commercial activities.

Mumbai’s 113-yr old Elphinstone Bridge dismantled

The bridge has shaped commuter movement for 113 years between present-day Parel and Prabhadevi in central Mumbai. The last remaining girders were dismantled by workers. The Central Railway has so far razed five British-era road overbridges (ROBs) as part of infrastructure upgrades and suburban rail corridor expansion works on the busy CSMT-Kurla stretch in the metropolis. The dismantling was carried out in a phased manner as the ROB ran over Mumbai’s busy rail lines. Nearly 20 corridor blocks were utilised for preparatory works to remove the deck slab, pipelines, cables and footpath structures. During the final mega block on the night of April 4-5, the remaining longitudinal beams and the two main girders were dismantled using heavy-duty cranes of up to 800-tonne capacity positioned outside the railway boundary.

1,670 million tonnes cargo transported by Railways

Indian Railways has achieved a significant milestone in cargo transport. The ministry announced a new record of 1,670 million tonnes of freight. This represents a growth of 3.25% over the previous year. The performance highlights improved operational efficiency and increased reliance on rail transport. Key sectors like fertilizers and steel drove this growth. The growth in freight transportation has been largely driven by key sectors such as fertilisers (13.49 per cent), pig iron and steel (13.11 per cent). FY 2025-26 reflects broad-based growth across several regions, with South Western Railway recording the highest increase of 14.89 per cent over the previous year.

India records high office leasing despite global headwinds

India’s office property market recorded its strongest-ever quarterly performance in the March quarter. Leasing activity hitting a new peak despite ongoing geopolitical tensions and global uncertainty. This underscores India’s growing strategic importance as a global business and operations hub. Office leasing touched 29.9 million sq ft across the top eight cities during the quarter. This marks a 6% increase over the previous high recorded in the March quarter of 2025, as per data from Knight Frank India. Bengaluru led leasing volumes with 9.2 million sq ft, followed by Hyderabad at 5.9 million sq ft and Mumbai at 5.6 million sq ft. Global Capability Centres (GCCs) continued to anchor demand, accounting for 14.4 million sq ft or 48% of total leasing, the highest share on record. Bengaluru remained the preferred hub for GCCs.