South Asia

Disruptions

India extends RELIEF scheme with 95% ECGC risk cover

The Indian government has extended Component II of its RELIEF scheme via a September 30 notification, offering exporters 95% ECGC risk coverage for shipments to specified regions. Coverage applies to policies obtained on or after March 16, 2026, and includes full- and less-than-container-load cargo—excluding energy shipments. Premiums are capped at pre-disruption levels. Launched March 19 amid Gulf corridor disruptions, the scheme responds to rising freight costs, insurance premiums, and war-related risks. The update was published October 2, 2026.

2026-10-03

Warehousing & Transport

India’s Tea Exports Drop 20% Amid Freight Surge, Logistics Disruptions

India’s tea exports are expected to fall 20% year-on-year in 2026 due to soaring freight rates and logistics disruptions linked to the West Asia crisis. Total exports dropped 16.11% to 128.56 million kgs in January–July 2026. Freight costs to key markets like Iran and Iraq rose more than 10-fold, prompting Bhansali & Co. to forecast a 30%+ export decline. Though exports reached 285.53 million kgs in 2025—up from 256.11 million kgs in 2024—regulatory hurdles in Europe and pricing constraints in the Middle East compound the pressure. Demand resilience has helped sustain prices despite lower volumes.

2026-10-02

South Asia Supply Chain

India Rice Freight Diverges: $376/tonne, Cotonou Delays

India's rice freight market diverged in the week ending 30 September 2026: bulk fixing softened amid West African port disruptions, while containerised shipments gained traction. Non-basmati parboiled rice (IR-64 5% PB) FOB Kakinada fell to $376/tonne — down $4/tonne week-on-week from $380/tonne. Cotonou emerged as a key operational concern, with four vessels diverted due to congestion and price disparity. Demand for containerised cargo remained strong toward Mombasa, Tamatave, and Maputo, even as container availability tightened at Indian export gateways and logistics costs squeezed margins.

2026-10-01

South Asia Supply Chain

Mehrunisha Begum wins WorldSkills silver in logistics

Indian logistics professional Mehrunisha Begum has won a Silver Medal in Logistics and Freight Forwarding at the 48th WorldSkills Competition in Shanghai, China, held September 22-27, 2026. Begum, who holds a BBA in Logistics from Begumpet Degree College, Hyderabad, and works with Cargomen Logistics India Pvt. Ltd., was assessed on international transportation, documentation, routing, commercial decision-making and customer handling. The competition brought together around 1,400 young professionals from nearly 70 countries and regions across 64 skills. India's participation is coordinated by the National Skill Development Corporation under the Ministry of Skill Development and Entrepreneurship.

2026-09-29

Manufacturing

India’s Industrial Production Rises 8% in August 2026

India's industrial production rose 8% year-on-year in August 2026, accelerating from 7.4% in July. Manufacturing grew 9%, electricity and gas supply surged 12.3%, and mining contracted 5.6%. Electrical equipment output jumped 30.9%, while capital goods rose 16.9% and intermediate goods increased 13.7%. Cumulative growth for April–August 2026 reached 6.7%, up from 4.2% a year earlier. August data is based on an 88% response rate and remains provisional.

2026-09-29

South Asia Supply Chain

India, France Discuss EPR Reactor Deployment, Supply Chain Localisation

India and France discussed EPR reactor deployment, nuclear supply chain localisation, and pumped hydro storage cooperation on September 26, 2026. Power Secretary Pankaj Agarwal met EDF CEO Bernard Fontana in New Delhi. Discussions covered the Draft SHANTI Rules — placed publicly by the Department of Atomic Energy — enabling private and foreign participation in nuclear power. EDF stressed that a multi-reactor programme is essential to build supplier confidence and achieve economies of scale. The NTPC-EDF joint venture on pumped hydro storage was also highlighted as a key cooperative initiative.

2026-09-27

Digital Platforms

JNPA awards ₹929.5 million digital twin project to Softtech

The Jawaharlal Nehru Port Authority (JNPA) has awarded a ₹929.5 million contract to Softtech Engineers Limited to build a Digital Twin platform. Core functions are scheduled for completion by February 2027, with full operation expected by February 2028. The system will enable real-time monitoring of port assets, predictive maintenance of infrastructure, and integrated surveillance for safety. It will track environmental indicators—including green cover, air quality, and water quality—to support sustainability goals. Automated reporting features aim to strengthen regulatory compliance and strategic decision-making across trade and logistics operations.

2026-09-27

South Asia Supply Chain

India Targets 25% Global Chip Demand by 2032, Needs $12B Equipment

India aims to meet 25% of global semiconductor demand by 2032, requiring USD 12–13 billion in capital equipment, 400+ local suppliers, and expansion of fabrication, packaging, and design capabilities. JM Financials reports ISM 1.0 approved 12 facilities, while ISM 3.0 development is already underway. Tata Electronics’ Dholera fab targets 2028 commercial operations; Micron’s Sanand plant launched in February 2026 with 2,000 employees. Applied Materials pledges USD 5 billion under India Vision 2035, and LAM Research commits INR 100 billion to silicon-component manufacturing.

2026-09-25

Disruptions

India’s Exporters Face Empty Container Shortage at Nhava Sheva Port

Indian exporters face a critical shortage of empty containers at Nhava Sheva Port (JNPA), with 40ft boxes especially scarce. The port handled a record 832,000 teu in August — up 12% month on month and 20% year on year — and exported more containers than it imported, a rare occurrence. August goods exports rose 26.12% year on year. CMA CGM and Hapag-Lloyd are among carriers affected, while ICEGATE system failures have halted cargo clearances. Stakeholders cite vessel schedule disruption and surging US-bound exports as root causes.

2026-09-25

Supply Chain Finance

India’s Semiconductor Push Requires $12B Equipment, 400+ Suppliers

India aims to capture 25% of global semiconductor demand by 2032, requiring USD 12–13 billion in capital equipment and over 400 local suppliers. The global chip market is projected to grow from USD 775 billion in 2024 to USD 1.6 trillion by 2030, while India’s domestic market targets USD 110–120 billion. Tata Electronics’ Dholera fab will launch by 2028; Micron’s Sanand plant began production in February 2026 with 2,000 employees. Applied Materials pledged USD 5 billion by 2035, and LAM Research committed INR 100 billion for silicon-component manufacturing.

2026-09-25

ESG & Regulation

NMDC pledges net-zero operational emissions by 2047

NMDC shares rose 2% to Rs 80.85 after pledging net-zero operational emissions by 2047. Its phased roadmap spans FY 2026–FY 2030 (short term), FY 2030–FY 2040 (medium term), and FY 2040–FY 2047 (long term), targeting a minimum 90% emissions cut. Key initiatives include a 10.5 MW wind facility at Chitradurga, solar installations, slurry pipeline deployment, and rail freight expansion. Shares fell 5% monthly but gained 4.85% annually and 74.32% over five years.

2026-09-22

South Asia Supply Chain

India Launches Semicon India Programme in January 2022

India launched the Semicon India Programme in January 2022 to develop a full domestic semiconductor supply chain — spanning chip design, fabrication, assembly, testing, packaging, and module manufacturing. Prime Minister Narendra Modi inaugurated SEMICON India 2026 on September 17 in New Delhi, marking the fifth edition of the event running through September 19. The government’s initiative explicitly targets vertical integration in semiconductors and aligns with Vishwakarma Jayanti, honoring India’s legacy of craftsmanship. The programme’s timeline extends through 2026, underscoring its multi-year strategic scope.

2026-09-21