Development Watch – Week #3 June’26

Development News

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Embraer aircraft assembly line coming up in Dholera

Adani Group and Embraer have selected Dholera in Gujarat for a regional jet assembly line. This collaboration aims to boost India’s aircraft manufacturing capabilities. Embraer sees significant potential in the Indian market for civilian and defense aircraft. The facility will support India’s Regional Transport Aircraft program and the UDAN scheme. Airline commitments are crucial for the assembly line’s establishment. Adani Defence & Aerospace and Embraer inked a Memorandum of Understanding (MoU) for the strategic collaboration on regional transport aircraft in India in January this year. Embraer is looking to strengthen its presence in the country’s commercial aviation, defence, business aviation, services and support, and urban air mobility segments. At present, Embraer, whose E-Jets began operations in India in 2005, has nearly 50 aircraft in the country serving the Indian Air Force, government agencies, business jet operators and commercial airline Star Air.

“Digital Workers” to overcome manpower challenges in construction

Larsen & Toubro is embracing automation and robotics to boost construction. The company aims to transform the industry by reducing reliance on manual labor. The company is using robotics for activities such as welding, painting and plastering, and described technology-enabled systems as ‘digital workers’. The company’s order book has increased to around ₹7.5 lakh crore from ₹3-3.5 lakh crore five years ago, while the workforce engaged in execution has grown from 1.5 lakh direct and indirect workers to about 4 lakh. “Make construction not so much of a site work. Make it a bit of a factory work by having prefabricated structures, modular structures. So, you go to the site and bolt them”.

4-laning of Nagaur-Bikaner stretch of NH-62

The Centre has approved a Rs 1,359 crore project to four-lane the Nagaur-Bikaner stretch of National Highway-62 in Rajasthan. This development under the Build-Operate-Transfer model will significantly improve connectivity in western Rajasthan. The project is expected to boost economic activity, create new investment and employment opportunities, and accelerate industrial and tourism growth in the region.

First “Make in India” Airbus test flight in Vadodara

The first ‘Made in India’ Airbus C295 military transport aircraft has conducted its first test flight from the Final Assembly Line in Vadodara, marking a milestone for Indian aviation and defence. This maiden test flight is a crucial step in the aircraft’s post-production first of 40 aircraft to be built in India. The test flight advances the programme’s objective of delivering the first ‘Made in India’ C295 aircraft this year to the Indian Air Force. A game changer in the Government of India’s ‘Make in India’ vision, the C295 India programme is the first instance of a military aircraft being manufactured in India by the private sector. The programme’s progress reflects the steady and dedicated work of Airbus, Tata Advanced Systems Limited and several Indian MSMEs, which are manufacturing parts for the aircraft across India. 

Policy for Green Data Centres in Maharashtra

Maharashtra has significantly expanded its green data centre policy. The state now allows more projects across all regions, not just Mumbai. This move aims to accelerate digital infrastructure investment and meet long-term capacity targets. Incentives like power tariff concessions and subsidies are offered to attract developers. The policy changes are designed to make projects more viable and encourage widespread development.

$53 million raised by Residential Solar funding round

SolarSquare has secured $53 million in a significant funding round. This investment fuels expansion into new cities and strengthens technology. The company is India’s largest residential rooftop solar provider. Growing adoption of solar power in India is driving this growth. SolarSquare aims to build a comprehensive home-energy platform for consumers nationwide. Founded in 2015 by Neeraj Jain, Shreya Mishra and Nikhil Nahar, SolarSquare has emerged as India’s largest residential rooftop solar company, powering around 50,000 homes across the country and currently operating at an annual revenue run rate exceeding ₹1,000 crore. The fundraising comes amid rising adoption of rooftop solar in India, supported by increasing electricity tariffs, growing energy demand and the Centre’s PM Surya Ghar Scheme, which has accelerated consumer awareness and adoption of residential solar systems.

Risk from Weather stress in Rural areas

Early monsoon weakness (28% deficient so far) combined with the likelihood of moderate to strong El Niño conditions is emerging as the next major test for India’s growth and price stability story. India is shifting from imported energy stress to a domestic climate risk even though it is better prepared now to tackle it. The government is preparing for a “not-so-good monsoon scenario” while maintaining adequate buffer stocks. Moderate to strong El Niño conditions are expected to develop during the June–September period. Historically, 12 out of 16 moderate or stronger El Niño episodes have coincided with below-normal rainfall in India. The risk is therefore statistically tilted toward weaker agricultural output this season. India’s economy is less rainfall-dependent than in the past. Higher irrigation coverage, diversification into livestock and fisheries and a larger services sector have reduced the direct link between monsoon and overall GDP growth.