cargonet_wp_admin, Author at CargoNet

August 21, 2026August 31, 2026

DGFT Eases INR Export Rules, Giving Indian Exporters More Payment Flexibility

Indian exporters can now invoice overseas buyers and receive eligible export payments in Indian rupees more easily after the Directorate General of Foreign Trade (DGFT) amended the Foreign Trade Policy 2023.

The change places eligible export proceeds received in INR on a similar footing to foreign-currency earnings for Foreign Trade Policy benefits and the fulfilment of export obligations. It is intended to remove a regulatory concern that may have discouraged exporters from choosing rupee-based settlement.

The amendment was issued through DGFT Notification No. 30/2026-27 dated August 20, 2026, covering changes to paragraphs 2.52 and 2.53 of the Foreign Trade Policy.

At a Glance

Export contracts for eligible non-ACU markets can be denominated in INR or foreign currency.
Export invoices can be raised in Indian rupees.
Payments may be received in INR through approved banking channels.
Eligible rupee receipts can qualify for Foreign Trade Policy benefits.
INR receipts can count towards the fulfilment of applicable export obligations.
Exports supported by EXIM Bank or Government of India lines of credit can be invoiced in INR.
Separate rules continue to apply to ACU member countries, Nepal and Bhutan.
Exporters must continue to follow RBI, banking, documentation and reporting requirements.

What Has Changed in India’s Rupee Export Settlement Rules?

Under the revised policy, exporters dealing with countries outside the Asian Clearing Union can denominate their contracts and invoices in either Indian rupees or foreign currency.

The export payment may also be received in INR or an eligible foreign currency, subject to the applicable banking and regulatory requirements.

The most important change concerns the treatment of export earnings received in rupees. Eligible INR realisations through approved banking channels can now be considered for:

This provides greater policy certainty to exporters and reduces the possibility of losing eligible trade benefits simply because an overseas transaction was settled in rupees.

Previous Rules Compared With the Revised Framework

Area

Earlier position

Revised position

Export contract

INR invoicing was possible, but rupee realisation was allowed only under specified conditions

Eligible contracts can be denominated in INR or foreign currency

Export invoice

Could be raised in INR in permitted cases

INR invoicing is clearly recognised for eligible exports

Export payment

Export proceeds were generally expected in freely convertible currency, with limited INR exceptions

Eligible payments can be received in INR or foreign currency

FTP benefits

Uncertainty existed over the treatment of some rupee receipts

Eligible INR receipts can qualify for FTP benefits

Export obligations

Treatment of rupee realisations could discourage INR settlement

Eligible INR receipts can count towards export-obligation fulfilment

Government-supported exports

Specific provisions applied

EXIM Bank and Government of India line-of-credit exports may be invoiced in INR

ACU markets

Separate settlement rules applied

Separate ACU provisions continue

How Can Exporters Receive International Payments in INR?

India’s rupee-settlement framework allows eligible international trade transactions to be processed through Special Rupee Vostro Accounts, commonly known as SRVAs.

An authorised dealer bank in India can maintain an SRVA for the correspondent bank of a trading-partner country. Under this mechanism, an Indian exporter receives payment in rupees from the balance held in the designated account.

The Reserve Bank of India introduced this trade-settlement mechanism in July 2022. It allows eligible exports and imports to be invoiced, paid for and settled in INR.

INR Export Settlement Process

The exact banking arrangement can vary by country and transaction. Exporters should therefore confirm the payment structure with their authorised dealer bank before finalising a rupee-denominated contract.

Why Does the DGFT Amendment Matter to Exporters?

More choice when negotiating payment terms

Exporters and overseas buyers can consider INR alongside conventional foreign currencies when structuring eligible transactions.

Greater certainty over export benefits

Eligible rupee receipts can receive Foreign Trade Policy treatment comparable to qualifying foreign-currency realisations. This removes an important policy concern for businesses considering INR settlement.

Potential reduction in currency risk

When an Indian exporter invoices and receives payment in rupees, exposure to exchange-rate movements may be reduced. The actual benefit will depend on the contract, pricing structure, settlement arrangement and currency exposure of both parties.

The RBI states that settling transactions in INR can help reduce exchange-rate risk for Indian exporters and importers.

Support for markets with foreign-currency constraints

Rupee settlement may provide another payment option when buyers face limited access to widely used settlement currencies. However, adoption will depend on overseas demand for INR, participating banks and the availability of rupee balances.

Easier participation in supported overseas projects

Allowing INR invoicing for exports backed by EXIM Bank or Government of India lines of credit could help businesses participating in government-supported trade and infrastructure projects.

Which Transactions Have Separate Rules?

The revised framework does not mean that identical rules apply to every export destination.

Countries participating in the Asian Clearing Union remain subject to the settlement arrangements prescribed for ACU transactions. Nepal and Bhutan also have separate provisions governing trade payments.

Transactions involving Iran must continue to follow restrictions covering sensitive goods and technologies, including applicable controls under India’s SCOMET framework.

Exporters should verify the relevant country, product, banking and compliance requirements before agreeing to receive payment in INR.

Will the New Rules Increase International Use of the Rupee?

The amendment supports India’s longer-term effort to increase the use of the rupee in cross-border trade. It aligns the Foreign Trade Policy more closely with the RBI’s existing INR settlement mechanism.

However, regulatory approval alone may not produce an immediate rise in rupee-denominated exports. Wider adoption will also depend on:

The amendment removes an important policy obstacle, but commercial acceptance and banking infrastructure will determine how widely INR settlement is used.

What Should Exporters Do Before Choosing INR Settlement?

Exporters considering rupee-based payment should:

Confirm whether the destination and transaction are eligible.
Consult an authorised dealer bank about the applicable settlement channel.
Verify whether an appropriate SRVA or another approved arrangement is available.
State the currency, exchange-rate mechanism and payment terms clearly in the contract.
Confirm how the receipt will be reported and documented.
Check whether it qualifies for the intended FTP benefit or export obligation.
Review sanctions, SCOMET and product-specific requirements.
Compare the costs and risks of INR settlement with foreign-currency settlement.

Frequently Asked Questions

Can Indian exporters now invoice foreign buyers in rupees?

Yes. Eligible export contracts and invoices can be denominated in Indian rupees, subject to the Foreign Trade Policy, RBI rules and applicable banking requirements.

Can export payments be received in INR?

Yes. Eligible export payments may be received in INR through approved banking channels, including applicable rupee-based settlement arrangements.

Will INR export proceeds qualify for Foreign Trade Policy benefits?

Eligible rupee export realisations can qualify for Foreign Trade Policy benefits when they meet the prescribed conditions.

Can INR receipts count towards export obligations?

Yes. Qualifying export proceeds received in rupees can be considered for fulfilment of applicable export obligations.

What is a Special Rupee Vostro Account?

An SRVA is an INR-denominated account maintained by an authorised dealer bank in India for an overseas correspondent bank. It can be used to settle eligible international trade transactions in rupees.

Does the revised rule apply to ACU countries?

Different settlement provisions continue to apply to Asian Clearing Union members. Exporters should confirm the relevant requirements with their authorised dealer bank.

Can exports funded through an EXIM Bank line of credit be invoiced in INR?

Yes. The policy permits exports backed by EXIM Bank or Government of India lines of credit to be invoiced in Indian rupees.

Does INR settlement completely remove currency risk?

Not necessarily. It can reduce direct exchange-rate exposure for an Indian exporter receiving rupees, but other commercial, banking, pricing and counterparty risks may remain.

August 20, 2026September 2, 2026

India’s Oilmeal Exports Rise 18.41% in May as Rapeseed Meal Demand Surges

India’s oilmeal exports recovered in May 2026, increasing 18.41% year on year to 3.73 lakh tonnes. Stronger rapeseed meal shipments, led by demand from China and other Asian feed markets, supported the rebound.

The recovery followed a difficult April, when shipping disruptions, higher freight costs and competition from South American suppliers affected export volumes.

Key Highlights

India exported 3.73 lakh tonnes of oilmeal in May 2026.
Export volume increased 18.41% compared with May 2025.
Rapeseed meal was the principal contributor to the growth.
China emerged as an important market for Indian rapeseed and canola meal.
Soybean meal exports remained under pressure from Brazil and Argentina.
April–May 2026 exports declined 5.37% to 7.39 lakh tonnes.
Oilmeal export value increased 24.61% in May 2026.
High freight rates and shipping-route disruptions continue to affect competitiveness.

Rapeseed Meal Drives the May Recovery

Rapeseed meal accounted for much of the improvement in India’s oilmeal export performance. Growing demand from China helped Indian exporters increase shipments after the weaker start to the financial year.

Trade-flow data identified the India–China corridor as the largest reported route for canola meal shipments during May. This indicates that China is becoming increasingly important to India’s oilmeal exporters.

Rapeseed meal is widely used as a protein-rich ingredient in animal feed. Its competitive pricing and availability are helping Indian suppliers find buyers across Asian markets.

Oilmeal Export Performance

Period

Export volume

Year-on-year change

May 2026

3.73 lakh tonnes

0.1841

April–May 2026

7.39 lakh tonnes

−5.37%

April–May 2025

7.81 lakh tonnes

-

April–May 2025

Not specified

24.61%

Although May recorded strong growth, India’s total oilmeal exports for April–May 2026 remained below the previous year’s level. This was mainly due to the decline recorded in April.

Based on the reported cumulative figures, April 2026 exports were approximately 3.66 lakh tonnes, compared with an estimated 4.66 lakh tonnes in April 2025.

Monthly Oilmeal Export Comparison

April and May 2025 figures and April 2026 figures are approximate calculations based on the reported May growth rate and April–May totals.

Soybean Meal Faces Strong Price Competition

India’s soybean meal exporters continue to face difficult international market conditions. Brazil and Argentina have large soybean supplies and can offer soybean meal at competitive prices.

This price difference makes it harder for Indian suppliers to secure orders in cost-sensitive markets. India’s soybean meal export performance will depend on domestic soybean prices, processing costs and the availability of competitively priced supplies from South America.

Freight Costs Affect Export Competitiveness

Logistics costs remain an important concern for Indian oilmeal exporters. Higher ocean freight rates can significantly increase the delivered price of oilmeal, particularly in markets located farther from India.

Disruptions affecting international shipping routes, including the Red Sea corridor, may result in:

These challenges make nearby Asian destinations commercially important for Indian exporters.

What Could Influence Oilmeal Exports?

India’s oilmeal export performance during the remainder of FY27 is likely to be influenced by:

Sustained demand from Asian feed manufacturers could help India recover from the decline recorded during April. However, expensive freight and strong soybean meal competition may continue to limit overall growth.

Frequently Asked Questions

How much oilmeal did India export in May 2026?

India exported 3.73 lakh tonnes of oilmeal in May 2026, an increase of 18.41% year on year.

What drove the increase in India’s oilmeal exports?

The increase was mainly driven by stronger exports of rapeseed meal, particularly to China and other Asian feed markets.

Which country was an important buyer of Indian rapeseed meal?

China emerged as an important destination. The India–China trade corridor was the largest reported route for canola meal shipments in May.

Why are India’s soybean meal exports under pressure?

Indian soybean meal faces price competition from Brazil and Argentina, where large soybean crops allow exporters to offer more competitive prices.

Did India’s cumulative oilmeal exports increase in April–May 2026?

No. Oilmeal exports during April–May 2026 declined 5.37% to 7.39 lakh tonnes, compared with 7.81 lakh tonnes during the same period a year earlier.

How do freight rates affect oilmeal exports?

Higher freight rates increase the delivered cost of Indian oilmeal. This makes exports less competitive, especially in distant international markets.

August 20, 2026September 4, 2026

Rapeseed Meal Demand Drives 18.41% Rise in India’s Oilmeal Exports

India’s oilmeal exports recovered in May 2026, increasing 18.41% year on year to 3.73 lakh tonnes, compared with approximately 3.15 lakh tonnes in May 2025. Stronger overseas demand for rapeseed meal, particularly from China and other Asian feed markets, supported the rebound.

The recovery follows a difficult April, when shipping disruptions, elevated freight costs and competition from South American suppliers affected India’s oilmeal shipments.

Important Points

India exported 3.73 lakh tonnes of oilmeals in May 2026.
Export volume increased 18.41% year on year.
Rapeseed meal was the main contributor to the monthly growth.
China emerged as an important destination for Indian rapeseed meal.
Soybean meal exports continued to face price pressure from Brazil and Argentina.
Total oilmeal exports during April–May 2026 declined 5.37% to 7.39 lakh tonnes.
Oilmeal export value increased 24.61% in May 2026.
High freight rates and shipping-route disruptions remain significant challenges.

India’s Oilmeal Export Performance

Period

Export volume

Year-on-year change

April 2025

4.66 lakh tonnes

—

May 2025

3.15 lakh tonnes

—

April 2026

3.66 lakh tonnes

Down 21.46%

May 2026

3.73 lakh tonnes

Up 18.41%

April–May 2025

7.81 lakh tonnes

—

April–May 2026

7.39 lakh tonnes

Down 5.37%

Rapeseed Meal Leads the Export Recovery

Rapeseed meal was the principal driver of India’s oilmeal export growth in May. Demand from China and other Asian countries has created additional opportunities for Indian exporters supplying ingredients to livestock, poultry and aquaculture feed manufacturers.

Trade-flow data identified the India–China route as the largest reported corridor for canola or rapeseed meal shipments during the month. This reflects China’s increasing importance within India’s agricultural export market.

India’s proximity to major Asian destinations may also offer shorter transit times than shipments from some competing origins. However, the commercial advantage depends heavily on freight rates, product prices and vessel availability.

Soybean Meal Exports Face Strong Competition

While rapeseed meal shipments improved, Indian soybean meal remained under pressure in international markets.

Brazil and Argentina continue to benefit from large soybean crops and competitive export prices. This makes it difficult for Indian suppliers to secure orders in price-sensitive overseas feed markets.

India’s soybean meal competitiveness will depend on:

Weak April Keeps Cumulative Exports Lower

Despite May’s improvement, India’s cumulative oilmeal exports during April–May 2026 were 5.37% lower year on year.

Exports reached 7.39 lakh tonnes, compared with 7.81 lakh tonnes during the same period in 2025. The decrease was primarily caused by weaker shipments in April, which were not fully offset by May’s recovery.

This comparison shows that one month of stronger exports has improved the position, but sustained demand will be necessary for the sector to return to cumulative growth.

Export Volume Versus Export Value

Oilmeal exports increased 24.61% in value terms during May 2026, exceeding the 18.41% increase recorded in shipment volume.

Indicator

May 2026 year-on-year change

Oilmeal export volume

Up 18.41%

Oilmeal export value

Up 24.61%

April–May export volume

Down 5.37%

The faster increase in export value may indicate a more favourable product mix, improved pricing or stronger demand for higher-value oilmeal products.

Freight Costs Remain a Challenge

Logistics conditions continue to influence India’s oilmeal export competitiveness. Disruptions affecting international shipping routes, including the Red Sea corridor, have contributed to higher transportation costs and longer transit times.

These conditions can particularly affect exports to distant markets because oilmeal is a bulk commodity with price-sensitive margins.

Exporters may face:

What Could Influence Exports in the Coming Months?

India’s oilmeal export performance will depend on demand from China and other Asian feed markets. Continued purchasing of rapeseed meal could help exporters maintain the momentum recorded in May.

Other important factors include global oilmeal prices, India’s domestic oilseed production, South American soybean supplies, currency movements and international freight rates.

Rapeseed meal is becoming increasingly important to India’s oilmeal export basket. However, sustained growth will require stronger shipments across multiple products and continued access to competitively priced logistics services.

Frequently Asked Questions

How much oilmeal did India export in May 2026?

India exported approximately 3.73 lakh tonnes of oilmeals in May 2026, an increase of 18.41% compared with May 2025.

What caused India’s oilmeal exports to rise?

The increase was primarily driven by stronger overseas demand for Indian rapeseed meal, particularly from China and other Asian feed markets.

Why are India’s soybean meal exports under pressure?

Indian soybean meal faces price competition from Brazil and Argentina, which have large supplies and can offer competitive prices in international markets.

Did India’s oilmeal exports increase during April–May 2026?

No. Despite the May rebound, cumulative exports fell 5.37% to 7.39 lakh tonnes, from 7.81 lakh tonnes during April–May 2025.

How do freight costs affect oilmeal exports?

Higher freight rates increase the delivered cost of Indian oilmeal. This can make Indian cargo less competitive, especially in distant and price-sensitive markets.

Which countries are important markets for Indian rapeseed meal?

China and other Asian countries are increasingly important markets because of their demand for protein-rich ingredients used in animal and aquaculture feed.

August 19, 2026September 2, 2026

Maruti Suzuki Accounts for Over 55% of India’s Passenger Vehicle Exports in Q1 FY27

Maruti Suzuki India strengthened its leadership in the country’s passenger vehicle export market during the first quarter of FY27. The automaker shipped 123,330 passenger vehicles between April and June 2026, accounting for more than 55% of India’s total passenger vehicle exports.

The company’s exports increased 28.23% from 96,181 units in the same quarter last year. By comparison, India’s overall passenger vehicle exports grew 8.8% year-on-year to 222,392 units.

Important Points

Maruti Suzuki exported 123,330 passenger vehicles in Q1 FY27.
The company represented approximately 55.5% of India’s passenger vehicle exports.
Its export volume increased 28.23% year-on-year.
India exported 222,392 passenger vehicles during the quarter.
The FRONX, Jimny 5-Door and eVITARA were India’s three leading exported passenger vehicle models.
Six Maruti Suzuki models ranked among India’s eight most-exported passenger vehicles.
The FRONX crossed 200,000 cumulative exports in August 2026.
Maruti Suzuki exports 17 models to nearly 120 international markets.
The company has led India’s passenger vehicle exports for five consecutive years.

Q1 FY27 Passenger Vehicle Export Performance

Export indicator

Q1 FY26

Q1 FY27

Year-on-year change

Maruti Suzuki passenger vehicle exports

96,181 units

123,330 units

28.23%

Total Indian passenger vehicle exports

Approx. 204,400 units

222,392 units

9%

Maruti Suzuki’s export market share

Approx. 47.1%

Approx. 55.5%

Up 8.4 percentage points

Maruti Suzuki added 27,149 export units during the quarter. Its growth was substantially faster than that of the wider market, pushing its share of national passenger vehicle exports above 55%.

FRONX Leads Maruti Suzuki’s Export Expansion

The FRONX has become one of the strongest contributors to Maruti Suzuki’s overseas growth. The SUV crossed the 200,000-unit export milestone in August 2026, less than 38 months after international shipments began in June 2023.

The first 100,000 FRONX vehicles were exported over approximately 25 months. The following 100,000 units were shipped in around 13 months, indicating a significant acceleration in overseas demand.

Manufactured at Maruti Suzuki’s Hansalpur facility in Gujarat, the FRONX is now supplied to nearly 90 countries. It has remained India’s most-exported passenger vehicle since FY25.

Maruti Suzuki Expands Its International Market Presence

Maruti Suzuki currently exports 17 vehicle models to nearly 120 countries. Its international markets include destinations across:

This geographically diversified market base can help the company manage demand fluctuations and trade-related disruptions in individual regions.

The inclusion of the eVITARA among India’s leading exported models also signals the growing importance of electric vehicles in the country’s automotive export portfolio.

What Export Growth Means for Ports and Logistics Companies

Higher passenger vehicle exports create additional cargo volumes across the automotive logistics chain. The growth can benefit:

Ports with dedicated automobile-handling infrastructure could see stronger demand for vehicle storage yards, RoRo berths, vessel scheduling, customs processing and multimodal connectivity.

How Are Maruti Suzuki Vehicles Exported?

Export vehicles are generally transported from manufacturing facilities to Indian ports by rail or specialised road carriers. At the port, they undergo documentation, customs clearance, inspection and temporary storage before loading.

Vehicles may be shipped using:

The shipping method depends on cargo volume, destination, vessel availability, cost and port infrastructure.

India’s Role as an Automotive Export Hub

The results reinforce India’s growing position as a manufacturing and export centre for passenger vehicles. Competitive production capabilities, an expanding model range and access to multiple international markets are supporting this growth.

Maruti Suzuki’s exports increased more than three times as fast as India’s overall passenger vehicle exports during Q1 FY27. This difference indicates that the company is gaining export market share while helping generate additional demand for Indian ports, shipping lines and finished-vehicle logistics networks.

Frequently Asked Questions

How many passenger vehicles did Maruti Suzuki export in Q1 FY27?

Maruti Suzuki exported 123,330 passenger vehicles between April and June 2026.

What was Maruti Suzuki’s share of India’s passenger vehicle exports?

The company accounted for approximately 55.5% of India’s passenger vehicle exports in Q1 FY27.

How much did Maruti Suzuki’s exports grow?

Maruti Suzuki’s passenger vehicle exports increased 28.23% year-on-year, compared with India’s overall export growth of 8.8%.

Which Maruti Suzuki model is exported the most?

The FRONX has been India’s leading exported passenger vehicle since FY25. It crossed 200,000 cumulative exports in August 2026.

How many countries receive Maruti Suzuki vehicles?

Maruti Suzuki exports 17 models to nearly 120 international markets. The FRONX alone is shipped to nearly 90 countries.

How does vehicle export growth benefit the logistics industry?

Rising exports increase demand for vehicle transportation, port storage, customs clearance, RoRo shipping, container services and finished-vehicle logistics.

August 19, 2026August 31, 2026

India’s 6–8% Growth Powered by Infrastructure, Inclusion and Manufacturing: Ashwini Vaishnaw

India’s sustained economic growth is gaining global attention, supported by continued investment in infrastructure, digital systems, inclusive development and domestic manufacturing, Union Information and Broadcasting Minister Ashwini Vaishnaw said.

According to the minister, India has maintained a growth rate of around 6% to 8%, placing it among the world’s major growing economies. He identified four pillars supporting this momentum: social infrastructure, digital and physical infrastructure, inclusive growth, and manufacturing. The statement was reported by Akashvani News.

Important Points

India is sustaining annual economic growth in the 6%–8% range.
Investment in physical and digital infrastructure is supporting business expansion.
Inclusive policies aim to extend development benefits across regions and communities.
Manufacturing remains central to job creation, industrial capacity and exports.
Improved infrastructure could reduce logistics costs and strengthen supply chains.
Stronger domestic production may increase freight, warehousing and port activity.
The growth strategy combines social development with industrial competitiveness.

Four Pillars Supporting India’s Economic Growth

Growth pillar

Primary role

Potential economic effect

Social infrastructure

Expands access to essential services and welfare support

Greater workforce participation

Physical infrastructure

Improves roads, railways, ports, airports and industrial connectivity

Faster movement of goods and people

Digital infrastructure

Expands access to payments, banking and government services

Lower transaction costs and wider market access

Inclusive development

Extends economic opportunities across regions and communities

Broader participation in growth

Manufacturing

Increases domestic production and industrial investment

More jobs, exports and logistics demand

Infrastructure Investment Improving Connectivity

India’s investment in roads, railway networks, airports, ports and logistics corridors is improving connections between manufacturing centres and domestic and international markets.

Better transport infrastructure can help businesses move raw materials and finished products more efficiently. It can also reduce transit delays, support regional industrial development and improve access to consumption centres.

Digital infrastructure is complementing these physical networks. Online payments, digital identification and electronic government services are making banking, education and public services more accessible.

Together, physical and digital infrastructure can make it easier for companies to manage transactions, coordinate supply chains and reach customers across the country.

Inclusive Growth Expands Economic Participation

Vaishnaw emphasised that economic progress should reach people across different income groups, communities and regions.

Social welfare programmes and improved access to digital services can enable more citizens to participate in the formal economy. Financial inclusion can also help individuals and small businesses access payments, government benefits and financial services.

However, sustaining inclusive growth will depend on the creation of productive employment, skills development and better economic opportunities outside major urban centres.

Manufacturing Push Could Strengthen Supply Chains

Manufacturing is a major component of India’s long-term economic strategy. Expanding domestic production can create direct and indirect employment while generating demand for transportation, warehousing, freight forwarding and distribution services.

Government initiatives are also encouraging new industrial capacity and stronger domestic supply chains. India’s manufacturing policy focuses on attracting investment, increasing production and improving the country’s competitiveness in international markets.

A stronger manufacturing base could help India:

What Does India’s Growth Strategy Mean for Logistics?

Growth in infrastructure and manufacturing is likely to increase cargo movement across road, rail, air and sea networks. This could create new opportunities for freight forwarders, transport companies, customs brokers, ports, warehouses and technology providers.

Development

Likely impact on logistics

Higher manufacturing output

More movement of raw materials and finished goods

Export growth

Greater demand for ports, containers and freight forwarding

New industrial clusters

Expansion of regional transport and warehousing networks

Improved roads and railways

Better first-mile and last-mile connectivity

Digital infrastructure

Faster documentation, payments and shipment coordination

Broader regional development

New cargo origins, destinations and distribution markets

These effects are potential outcomes rather than figures announced by the minister. Their scale will depend on how quickly infrastructure projects are completed and new manufacturing capacity becomes operational.

How Infrastructure and Manufacturing Support Trade

Challenges That Could Influence Future Growth

Maintaining a 6%–8% growth range will require more than infrastructure spending. India will also need to improve project execution, workforce skills, industrial productivity and access to finance.

Important areas to monitor include:

Frequently Asked Questions

What is driving India’s economic growth?

According to Ashwini Vaishnaw, India’s growth is being supported by investment in social, digital and physical infrastructure, inclusive development and manufacturing.

What is India’s current growth range?

The minister said India has been growing within a range of approximately 6% to 8%.

Why is infrastructure important for India’s economy?

Infrastructure connects factories, suppliers, markets, ports and consumers. Better connectivity can reduce delays, improve access to services and support business expansion.

How does manufacturing support economic growth?

Manufacturing creates jobs, attracts investment, increases industrial production and supports exports. It also generates demand for logistics, warehousing and transportation.

How could manufacturing growth affect the logistics sector?

Higher production may lead to more domestic and international cargo movement, increasing demand for freight forwarding, customs clearance, transportation, ports and warehouses.

What is inclusive growth?

Inclusive growth means ensuring that economic development creates opportunities and benefits for people across different communities, income groups and regions.

August 19, 2026September 4, 2026

CULines to Launch JSM Service, Expanding Japan–India and Middle East Connectivity

CULines will launch its new Japan–Straits–Malaysia (JSM) service on September 5, 2026, strengthening shipping connections between Japan, Southeast Asia and emerging markets across India, Pakistan, the Middle East and the Red Sea.

The weekly service will connect four major Japanese gateways—Tokyo, Yokohama, Nagoya and Kobe—with Keelung, Hong Kong, West Port Klang and Singapore.

CULines will operate the JSM service through a slot-exchange agreement with Ocean Network Express (ONE). The cooperation is expected to expand the carrier’s intra-Asia network while providing shippers with more flexible connections to South Asia and Middle Eastern markets.

JSM Service at a Glance

JSM Port Rotation

Tokyo → Yokohama → Nagoya → Kobe → Keelung → Hong Kong → West Port Klang → Singapore → Tokyo

Rotation

Port

Market role

1 Tokyo

Major Japanese gateway

2 Yokohama

Key container port serving eastern Japan

3 Nagoya

Important industrial and manufacturing gateway

4 Kobe

Major western Japan shipping hub

5 Keelung

Taiwan gateway and regional connection point

6 Hong Kong

International transshipment and trading hub

7 West Port Klang

Connection point for South Asia, the Middle East and the Red Sea

8 Singapore

Major Southeast Asian transshipment hub

9 Tokyo

Beginning of the next service cycle

How Will the JSM Service Connect Japan with India?

India is not listed as a direct port call in the announced JSM rotation. Cargo moving between Japan and India can instead connect through West Port Klang, where shipments can be transferred to services operating toward Indian ports.

This transshipment structure can give exporters and importers access to additional routing options between Japan and India without adding Indian ports to the core JSM rotation.

Similar onward connections will be available for cargo moving to Pakistan, the Middle East and Red Sea markets.

Why the New Service Matters for Shippers

More access to Japanese gateways

The inclusion of Tokyo, Yokohama, Nagoya and Kobe gives shippers access to four important Japanese commercial and industrial regions through one service.

Improved connections through Port Klang

West Port Klang will serve as a central transshipment point for cargo moving between Japan and markets across South Asia, the Middle East and the Red Sea.

Greater routing flexibility

Connections through both Port Klang and Singapore may provide freight forwarders and cargo owners with additional options when planning regional and long-distance shipments.

Stronger intra-Asia connectivity

Calls at Keelung, Hong Kong, Port Klang and Singapore strengthen links between major manufacturing, trading and transshipment centres across Asia.

Direct Calls and Onward Markets

Direct JSM port calls

Markets reached through transshipment

Tokyo

India

Yokohama

Pakistan

Nagoya

Middle East

Kobe

Red Sea

Keelung

Other connected regional markets

Hong Kong

West Port Klang

Singapore

What Does the JSM Service Mean for Freight Forwarders?

Freight forwarders handling Japan–India and Japan–Middle East shipments may gain another routing option for:

Actual transit times, sailing frequency, capacity and destination connections should be confirmed through the carrier’s published schedule.

Frequently Asked Questions

When will CULines launch the JSM service?

CULines is scheduled to launch the JSM service on September 5, 2026.

What is the full form of the JSM service?

JSM stands for Japan–Straits–Malaysia.

Which ports are included in the JSM rotation?

The announced rotation is Tokyo, Yokohama, Nagoya, Kobe, Keelung, Hong Kong, West Port Klang, Singapore and back to Tokyo.

Does the JSM service call directly at Indian ports?

No Indian port appears in the announced rotation. India-bound cargo will be connected through transshipment, particularly via West Port Klang.

Who will operate the JSM service?

CULines will provide the service through a slot-exchange cooperation with Ocean Network Express.

Which markets will benefit from the service?

The service is designed to improve connections between Japan, Southeast Asia, India, Pakistan, the Middle East and Red Sea markets.

August 17, 2026September 4, 2026

Hai An Launches NVOCC Services Linking Vietnam with Chennai and Kolkata

Hai An Container Transport has launched Non-Vessel Operating Common Carrier (NVOCC) services connecting Vietnam with Chennai and Kolkata, expanding its presence in the Indian container shipping market.

The new services give exporters, importers and freight forwarders an additional option for moving containerised cargo between Vietnam and eastern and southern India. They are also expected to improve routing flexibility and strengthen logistics connectivity along the growing Vietnam–India trade corridor.

Important Points

Hai An has launched NVOCC services between Vietnam and India.
The services cover Chennai and Kolkata, two important ports on India’s east coast.
Chennai provides access to southern India’s manufacturing and industrial markets.
Kolkata connects shippers with eastern India and its wider hinterland.
Samsara Shipping Private Limited represents Hai An as its General Shipping Agent in India.
Hai An currently owns a fleet of 20 container vessels.
Its newbuilding programme includes four 3,000-TEU vessels and four approximately 7,000-TEU vessels.
The additional vessels are expected to be delivered through 2028 and 2029.
Hai An is ranked among the world’s Top 100 container shipping lines.
Sailing frequency, transit times and port rotation details have not yet been disclosed.

New Vietnam–India Container Shipping Option

The launch extends Hai An’s network into two strategically important Indian markets.

Chennai is a major gateway for southern India and supports cargo generated by automotive, engineering, electronics, textiles and other manufacturing sectors. Kolkata provides maritime access to eastern India and connects with an extensive regional hinterland.

By covering both ports, Hai An can serve businesses across two different cargo markets while offering freight forwarders and cargo owners another NVOCC option on the Vietnam–India route.

Service detail

Information

Operator

Hai An Container Transport

Service type

NVOCC container service

Origin market

Vietnam

Indian ports

Chennai and Kolkata

Primary cargo

Containerised imports and exports

Indian representative

Samsara Shipping Private Limited

Current owned fleet

20 vessels

Expansion strategy

Long-term growth in India and intra-Asia markets

How the Service Supports Regional Trade

The service could help businesses move containerised goods between Vietnam and India with greater flexibility. Additional NVOCC capacity may allow shippers to compare routing options, container availability, schedules and freight rates before selecting a service.

The connection may support cargo flows involving:

Actual cargo acceptance will depend on Hai An’s operating conditions and individual booking requirements.

Vietnam–India Cargo Connectivity

Fleet Expansion Could Support a Larger Asian Network

Hai An currently operates 20 owned vessels and is expanding its fleet through two newbuilding programmes.

Newbuilding programme

Planned vessels

Capacity per vessel

Expected delivery

Programme 1

4 3,000 TEU

Through the end of 2028

Programme 2

4 Approximately 7,000–7,100 TEU

Through the end of 2029

Combined pipeline

8 —

2028–2029

The new capacity could give Hai An greater flexibility to extend its network, increase service coverage and pursue further opportunities within the intra-Asia container shipping market.

Hai An is Vietnam’s largest domestic shipping line and is listed among the world’s Top 100 container carriers. Its expansion into India supports the company’s longer-term goal of becoming a stronger regional carrier across Southeast Asia and the wider Asian market.

Samsara Shipping to Represent Hai An in India

Samsara Shipping Private Limited will serve as Hai An’s General Shipping Agent in India.

The agency will support the carrier’s local commercial and operational activities, including engagement with exporters, importers, freight forwarders and other logistics stakeholders. This local representation will be important as Hai An develops its customer base and evaluates further opportunities in India.

Why This Development Matters to Freight Forwarders

The entry of another regional operator can increase the number of available shipping options between Vietnam and India. Freight forwarders may gain access to additional capacity and alternative routing arrangements for customers trading with southern and eastern India.

However, the practical value of the service will depend on factors such as sailing frequency, transit time, transshipment arrangements, equipment availability and freight rates. These operational details were not included in the initial announcement.

Frequently Asked Questions

What service has Hai An launched in India?

Hai An Container Transport has launched NVOCC services connecting Vietnam with Chennai and Kolkata.

Which Indian ports are included?

The services include Chennai Port in southern India and Kolkata Port in eastern India.

Is Hai An operating its own vessels directly between Vietnam and India?

Hai An announced an NVOCC connection between the markets. The initial announcement did not specify whether every movement would operate as a direct sailing or involve transshipment.

Who represents Hai An Container Transport in India?

Samsara Shipping Private Limited represents Hai An as its General Shipping Agent in India.

How many vessels does Hai An own?

According to the service announcement, Hai An has a fleet of 20 owned container vessels.

What does NVOCC mean?

An NVOCC is a logistics operator that sells ocean freight services, issues its own transport documents and arranges cargo space with vessel-operating carriers without necessarily operating the vessel used for each shipment.

How could this service benefit exporters and importers?

It could provide another container shipping option, improve routing flexibility and support cargo movement between Vietnam and southern and eastern India.

August 14, 2026August 28, 2026

India’s Major Ports Cut Ship Turnaround Time as JNPA Ranks 22nd Globally in CPPI 2025

India’s major ports are showing measurable gains in operational efficiency, with average ship turnaround time improving to 48.84 hours in FY 2025-26, down from 52.87 hours in FY 2021-22. The improvement highlights the impact of port modernisation, mechanisation, infrastructure upgrades and streamlined digital processes across India’s maritime gateways.

A major global recognition has also strengthened India’s maritime performance story. Jawaharlal Nehru Port Authority (JNPA) ranked 22nd globally in the World Bank’s Container Port Performance Index (CPPI) 2025, retaining its position as India’s best-performing container port. JNPA was ranked just behind Singapore at 21st and ahead of Shanghai at 23rd.

Major Ports Improve Vessel Turnaround Time

According to the Ministry of Ports, Shipping and Waterways, the average turnaround time across India’s major ports has improved over the past five years:

Financial Year

Average Ship Turnaround Time

2021-22

52.87 hours

2022-23

52.90 hours

2023-24

48.06 hours

2024-25

49.47 hours

2025-26

48.84 hours

Overall, turnaround time has fallen by approximately 4.03 hours, or 7.6%, compared with FY 2021-22.

The latest performance indicates that Indian ports are gradually reducing the time vessels spend in port, an important factor in improving cargo velocity, asset utilisation and supply-chain efficiency.

JNPA Enters the Global Top 25

JNPA’s 22nd position in the CPPI 2025 is one of the strongest indicators of India’s progress in container port efficiency.

The World Bank’s CPPI measures container port performance based on the time vessels spend in port. JNPA also ranked 14th among the world’s top 20 ports showing improvement between 2020 and 2025, according to the port authority.

JNPA’s Global Position

Port

CPPI 2025 Rank

Singapore

21 JNPA, India

22 Shanghai

23 Rotterdam

333

The ranking places JNPA alongside some of the world’s major container gateways and reinforces India’s growing presence in global maritime logistics.

What Is Driving Better Port Performance?

The improvement in India’s port turnaround time is being supported by a combination of physical infrastructure and process reforms.

Key measures include:

Port modernisation: Upgrading berths, terminals and yards to increase operational capacity.
Mechanisation: Greater use of mechanised cargo-handling systems to improve productivity.
Infrastructure expansion: Development of new berths, terminals and supporting facilities.
Digitalisation: Increasing use of digital systems to simplify documentation and port processes.
One Nation One Port Process (ONOP): Standardisation of port procedures to reduce inconsistencies and operational delays.
Better port connectivity: Improvements in road and rail infrastructure supporting cargo evacuation.
Process optimisation: Streamlining vessel, cargo and documentation workflows.

The government launched One Nation One Port Process in February 2025 to standardise and streamline operations across India’s major ports. The initiative initially reduced container-operation documentation from 143 to 96 documents and bulk-cargo documentation from 150 to 106.

Port Efficiency: Why Turnaround Time Matters

Ship turnaround time is a critical logistics performance indicator. A vessel that spends less time waiting, berthing, loading or unloading can complete more voyages and move cargo through the supply chain faster.

The improvement can create benefits across the wider logistics ecosystem:

For exporters, importers, shipping lines and freight forwarders, faster port operations can translate into more predictable cargo movement and improved schedule reliability.

Implications for India’s Logistics Industry

The latest port performance data is significant for India’s broader logistics sector. As ports handle growing volumes of international trade, operational efficiency becomes increasingly important for controlling logistics costs and improving cargo-flow reliability.

For freight forwarders and logistics companies, faster vessel turnaround can support:

India’s progress is therefore not limited to individual port rankings. It reflects a broader shift toward technology-enabled, standardised and data-driven port operations.

India’s Port Performance at a Glance

Indicator

Latest Performance

Average major-port turnaround time

48.84 hours

FY 2021-22 turnaround time

52.87 hours

Improvement

4.03 hours / 7.6%

JNPA CPPI 2025 rank

22nd globally

Singapore CPPI rank

21st

Shanghai CPPI rank

23rd

JNPA improvement ranking

14th among top 20 improving ports, 2020-2025

Frequently Asked Questions

What is India's average ship turnaround time?

India’s major ports recorded an average ship turnaround time of 48.84 hours in FY 2025-26, compared with 52.87 hours in FY 2021-22.

Which Indian port ranks highest in the CPPI 2025?

Jawaharlal Nehru Port Authority (JNPA) is India’s highest-ranked port in the World Bank’s CPPI 2025, ranking 22nd globally.

What is the Container Port Performance Index?

The Container Port Performance Index (CPPI) is a World Bank-published measure that evaluates container port performance based on the time vessels spend in port.

What is One Nation One Port Process?

One Nation One Port Process (ONOP) is an Indian government initiative designed to standardise and simplify port procedures across major ports, reducing documentation inconsistencies and operational delays.

Why is ship turnaround time important?

Lower turnaround time allows vessels to spend less time in port, supporting faster cargo movement, better vessel utilisation and more efficient maritime supply chains.

August 14, 2026August 25, 2026

India’s Electronics Exports Surge 11-Fold to US$47.98 Billion as Women Drive Manufacturing Growth

India’s electronics manufacturing industry has emerged as one of the country’s fastest-growing export sectors, with electronics exports rising more than 11-fold to Rs. 4.24 lakh crore (US$47.98 billion) in FY2025-26 from Rs. 38,000 crore (US$6.21 billion) in FY2014-15.

The rapid expansion has strengthened India’s position in global electronics manufacturing while creating significant employment opportunities, particularly for women. Women now account for nearly 30% of the workforce across the broader electronics manufacturing ecosystem, while their participation in mobile phone manufacturing is estimated at around 70%.

The sector’s transformation has been supported by government programmes such as the Production Linked Incentive (PLI) Scheme, Electronics Components Manufacturing Scheme (ECMS), India Semiconductor Mission (ISM), and Modified Electronics Manufacturing Clusters (EMC 2.0).

Key Highlights

Electronics exports: US$47.98 billion in FY2025-26, up more than 11 times from FY2014-15.
Electronics production: Rs. 6.27 lakh crore (US$70.95 billion) in FY2025-26.
Mobile phone exports: Rs. 2.59 lakh crore (US$29.30 billion), up 165 times since FY2014-15.
Employment: Electronics manufacturing generated around 12 lakh jobs.
Women in mobile manufacturing: Nearly 70% of the workforce.
Women in the broader electronics ecosystem: Nearly 30%.
Internet subscribers: More than 109.2 crore by March 2026.
Wireless data cost: Declined from Rs. 308 per GB in 2014 to Rs. 7.51 per GB in 2026.
5G coverage: Available in 99.9% of districts across India.
5G infrastructure: 5.63 lakh 5G Base Transceiver Stations as of June 2026.
4G coverage: Extended to 6.31 lakh villages.

Electronics Exports: From Emerging Sector to Major Export Engine

Electronics goods have become India’s third-largest export category, reflecting a major shift in the country’s export profile.

In FY2014-15, electronics exports stood at just Rs. 38,000 crore. By FY2025-26, the figure had climbed to Rs. 4.24 lakh crore, equivalent to US$47.98 billion.

India’s Electronics Export Growth

Indicator

FY2014-15

FY2025-26

Growth

Electronics exports

Rs. 38,000 crore

Rs. 4.24 lakh crore

More than 11X

Electronics production

Rs. 18,000 crore

Rs. 6.27 lakh crore

Significant expansion

Mobile phone exports

Rs. 1,500 crore

Rs. 2.59 lakh crore

165X

Mobile phone export value

US$245.3 million

US$29.30 billion

Major increase

Wireless data costs have declined from Rs. 308 per GB in 2014 to Rs. 7.51 per GB in 2026, making mobile internet substantially more affordable for consumers and businesses.

Meanwhile, average mobile broadband download speeds increased from 13.67 Mbps in March 2022 to 132 Mbps in December 2025.

5G Expansion Strengthens India’s Digital Infrastructure

India’s telecommunications infrastructure has also expanded rapidly.

As of June 2026, 5G services were available in 99.9% of districts across States and Union Territories, supported by approximately 5.63 lakh 5G Base Transceiver Stations.

This expanding connectivity creates a stronger foundation for digital commerce, cloud services, AI adoption, connected logistics, smart manufacturing and Industry 4.0 applications.

Why India’s Electronics Growth Matters for Logistics

The expansion of electronics manufacturing has important implications for India’s logistics and supply chain sector.

Electronics products and components typically require time-sensitive transportation, inventory visibility, secure handling and efficient multimodal connectivity. As production and exports increase, manufacturers and logistics providers are likely to require more sophisticated supply chain capabilities.

For freight forwarders, the growth of electronics exports could translate into increased demand for air freight, ocean freight, customs clearance, warehousing, cargo tracking and international shipment management.

What This Means for India’s Export Economy

India’s electronics industry is increasingly becoming a strategic pillar of the country’s export ambitions.

The combination of rising production, stronger component manufacturing, growing mobile phone exports, expanding digital infrastructure and increasing global supply-chain integration is creating a broader electronics ecosystem.

The shift is particularly significant because electronics manufacturing can generate value across multiple stages of the supply chain — from components and assembly to logistics, testing, packaging and exports.

India’s Electronics Industry Gains Global Momentum

India’s electronics sector is undergoing a structural transformation, moving from a relatively small export segment to a major contributor to the country’s manufacturing and trade ecosystem.

With electronics exports reaching US$47.98 billion, mobile phones emerging as India’s largest export product and millions of new jobs being created, the sector is becoming increasingly important to India’s global trade strategy.

The combination of manufacturing incentives, semiconductor investments, digital connectivity and improving logistics infrastructure could further strengthen India’s position in global electronics supply chains. For logistics companies and freight forwarders, this growth also points towards expanding opportunities in electronics cargo movement, international freight, customs, warehousing, tracking and technology-enabled supply chain management.

Frequently Asked Questions

How much did India’s electronics exports reach in FY2025-26?

India’s electronics exports reached Rs. 4.24 lakh crore (US$47.98 billion) in FY2025-26.

Electronics exports increased more than 11-fold, rising from Rs. 38,000 crore in FY2014-15 to Rs. 4.24 lakh crore in FY2025-26.

How much did India’s mobile phone exports grow?

Mobile phone exports increased 165 times, from Rs. 1,500 crore in FY2014-15 to Rs. 2.59 lakh crore in FY2025-26.

How many jobs has the electronics sector generated?

The electronics manufacturing sector has generated approximately 12 lakh jobs.

What percentage of mobile manufacturing workers are women?

Women account for nearly 70% of the workforce in mobile manufacturing.

What are the major government schemes supporting electronics manufacturing?

Key programmes include the PLI Scheme, Electronics Components Manufacturing Scheme, India Semiconductor Mission and Modified Electronics Manufacturing Clusters 2.0.

How widely is 5G available in India?

5G services are available in approximately 99.9% of districts across States and Union Territories.

August 13, 2026August 24, 2026

Tamil Nadu Secures ₹67,452 Crore Investment Commitments in First TVK-Era Conclave

Tamil Nadu has secured investment commitments worth ₹67,452 crore through 97 memoranda of understanding (MoUs), with projects expected to generate nearly 1.07 lakh jobs, at the state government’s first major investment conclave under the new administration.

The Vetri Tamil Nadu Investors’ Conclave, held in Chennai on August 13, brought together companies from data centres, automobiles, electric vehicles, electronics, aerospace, renewable energy, textiles and engineering. The agreements include 56 greenfield projects, while several existing companies have also announced expansion plans.

The investment push is significant for Tamil Nadu’s industrial and logistics ecosystem because the projects are spread across more than 20 districts and include both established manufacturing clusters and emerging technology sectors.

Key Highlights

₹67,452 crore investment commitments secured through 97 MoUs.
1,06,998 jobs expected to be generated from the projects.
56 greenfield projects form part of the investment pipeline.
Data centres emerged as the largest investment sector, attracting ₹26,417 crore.
Automotive investments reached ₹17,073 crore.
Renewable energy projects accounted for ₹15,787 crore.
Engineering investments stood at ₹9,525 crore.
Foreign investment commitments totalled approximately ₹22,268 crore.
Projects are planned across more than 20 districts.
Cumulative investment commitments during the government's first 100 days reached ₹1,02,514 crore, with projected employment of 1,21,788 people, according to the state government.

Sector-Wise Investment Commitments

Sector

Investment Commitment

Data Centres

₹26,417 crore

Automotive

₹17,073 crore

Renewable Energy

₹15,787 crore

Engineering

₹9,525 crore

Other sectors

Balance of commitments

Total

₹67,452 crore

Figures are based on government-reported commitments and sector-wise figures reported following the conclave.

Data Centres Lead Tamil Nadu's Investment Push

The data centre industry emerged as the biggest investment driver, with commitments of ₹26,417 crore.

One of the largest individual announcements came from Lighthouse Green Data Centre, which committed ₹10,000 crore for a hyperscale data centre in Thoothukudi.

Nxtra by Airtel announced ₹1,417 crore to expand its Chennai campus and establish an edge data centre in Tiruchirappalli.

The concentration of data-centre investments is particularly important for the logistics sector. Large digital infrastructure facilities require reliable power, connectivity, equipment movement, specialised warehousing and efficient last-mile supply chains.

Aerospace and Space-Tech Investments Expand in Thoothukudi

Tamil Nadu is also positioning Thoothukudi as an emerging aerospace and space-technology manufacturing hub.

Skyroot Aerospace signed an MoU for a ₹250-crore facility in Thoothukudi for storage, assembly, integration and testing activities.

Agnikul Cosmos committed ₹400 crore for a launch-vehicle assembly and integration facility. The investments are expected to strengthen the industrial ecosystem developing around the Kulasekarapattinam spaceport.

The combination of aerospace manufacturing, port infrastructure and emerging space-launch capabilities could create new demand for specialised logistics, high-value cargo handling and time-critical transportation.

Automotive and EV Manufacturing Remain Strong

The automotive sector attracted ₹17,073 crore in commitments, reinforcing Tamil Nadu’s position as one of India’s major automobile and component manufacturing centres.

Major announcements included:

The expansion of EV and automotive component manufacturing could further increase demand for inbound raw-material logistics, component transportation, warehousing and finished-vehicle distribution.

Electronics and AI Infrastructure Gain Momentum

Tamil Nadu’s investment pipeline also includes projects focused on electronics, AI infrastructure and semiconductor-related manufacturing.

Supermicro, the US-based server manufacturer, signed an MoU for a ₹477-crore facility in Chennai for AI-server manufacturing.

Avalon Technologies committed ₹1,000 crore for electronic components in Kanchipuram.

The semiconductor and advanced-electronics pipeline also includes investments in semiconductor equipment, bonding materials, reliability testing and related manufacturing capabilities.

This could strengthen Tamil Nadu’s position in the wider electronics supply chain while creating additional demand for specialised freight, component logistics and technology-enabled inventory management.

Textile Investments Add Depth to Regional Industrial Growth

The investment push is not limited to technology and heavy industry.

MAS India committed ₹880 crore for apparel, textiles and wearable technology manufacturing across multiple districts, with around 7,000 jobs expected.

Pallava Group announced ₹1,000 crore for man-made fibre manufacturing, while RB Wovens committed ₹675 crore for home textiles at the upcoming PM-MITRA textile park in Virudhunagar.

These projects could help distribute industrial investment beyond Tamil Nadu’s established manufacturing corridors.

Major Companies and Project Commitments

Company

Investment

Location

Key Activity

Lighthouse Green Data Centre

₹10,000 crore

Thoothukudi

Hyperscale data centre

JK Tyre

₹5,143 crore

Kanchipuram

Tyre manufacturing

Daimler

₹4,000 crore

Tamil Nadu

BharatBenz manufacturing & product development

Hinduja Group

₹2,500 crore

Tamil Nadu

Solar, wind, battery & mobility

Lucas TVS

₹2,500 crore

Tamil Nadu

EV & automotive components

Saint-Gobain

₹2,000 crore

Krishnagiri /
Kanchipuram

Manufacturing & expansion

YKK

₹1,651 crore

Thiruvallur

Zipper manufacturing

Nxtra by Airtel

₹1,417 crore

Chennai/Trichy

Data centres

Avalon Technologies

₹1,000 crore

Kanchipuram

Electronics

Titan

₹1,000 crore

Hosur

Watches & electronics automation

Ultraviolette Automotive

₹779 crore

Krishnagiri

Electric motorcycles

Agnikul Cosmos

₹400 crore

Thoothukudi

Launch-vehicle assembly

Skyroot Aerospace

₹250 crore

Thoothukudi

Space launch vehicles

Supermicro

₹477 crore

Chennai

AI-server manufacturing

Investment figures represent announced MoU commitments and should not be treated as immediately deployed capital.

Investment Flow and Logistics Impact

The investment pipeline creates a potential chain reaction across Tamil Nadu’s industrial and logistics ecosystem:

Why This Matters for Logistics

For freight forwarders, 3PL providers, warehouse operators and transport companies, the new investment pipeline could create opportunities in several areas:

Industrial freight: movement of machinery, components and raw materials.
Project logistics: transportation and installation of large equipment for factories and data centres.
Electronics logistics: handling high-value and time-sensitive components.
Automotive logistics: movement of EV components, batteries, tyres and finished vehicles.
Aerospace logistics: specialised handling of high-value and sensitive cargo.
Warehousing: increased demand for inventory storage close to manufacturing clusters.
Multimodal transportation: integration of road, rail, air and maritime networks.
Export logistics: new manufacturing capacity could increase Tamil Nadu's export volumes.

Thoothukudi Emerges as a New Investment Hotspot

One of the most notable developments is the growing investment concentration in Thoothukudi.

The district is attracting projects spanning hyperscale data centres and private space-sector manufacturing. The combination of port connectivity, industrial infrastructure and the developing space ecosystem could make the region increasingly important for project cargo and specialised logistics.

The aerospace investments from Skyroot and Agnikul, alongside Lighthouse Green Data Centre’s ₹10,000-crore proposal, underline the potential for Thoothukudi to emerge as a diversified industrial and logistics hub.

Tamil Nadu's First-100-Day Investment Picture

The latest conclave takes the state’s cumulative investment commitments during the government’s first 100 days to ₹1,02,514 crore, according to the Tamil Nadu government.

The commitments are expected to generate approximately 1,21,788 jobs when the earlier agreements and the latest conclave commitments are combined.

The state government has also indicated that it intends to accelerate project approvals, with a stated 21-day deadline for approvals, licences and no-objection certificates (NOCs).

What This Means for India's Logistics Sector

Tamil Nadu’s latest investment drive goes beyond the headline investment number. The diversity of projects—from AI servers and data centres to EVs, aerospace, textiles and renewable energy—could create a broader and more complex logistics network across the state.

For logistics companies, this could mean higher cargo volumes, more specialised shipments, greater warehousing demand and increased need for real-time freight visibility.

For exporters, the expansion of manufacturing capacity could strengthen Tamil Nadu’s role in global supply chains, particularly in automobiles, electronics, textiles, engineering and emerging technology products.

Tamil Nadu’s Investment Boom Opens New Opportunities for Logistics

Tamil Nadu’s ₹67,452-crore investment pipeline signals an aggressive expansion across manufacturing, digital infrastructure, EVs, aerospace, electronics, renewable energy and textiles.

For the logistics industry, the significance could extend well beyond the investment announcements themselves. As these projects move from MoUs to construction, commissioning and commercial production, they could generate sustained demand for project cargo, freight forwarding, warehousing, multimodal transportation and supply-chain technology across Tamil Nadu.

Frequently Asked Questions

How much investment did Tamil Nadu attract at the 2026 Vetri Tamil Nadu Investors' Conclave?

Tamil Nadu secured investment commitments of ₹67,452 crore through 97 MoUs, according to the state government.

How many jobs are expected from the new Tamil Nadu investment commitments?

The 97 MoUs are expected to create approximately 1,06,998 jobs.

Which sector received the largest investment commitment?

Data centres received the largest sector-wise commitment at approximately ₹26,417 crore.

Which companies announced major investments?

Major announcements included Lighthouse Green Data Centre, JK Tyre, Daimler, Lucas TVS, Hinduja Group, Saint-Gobain, YKK, Nxtra by Airtel, Avalon Technologies, Titan, Skyroot Aerospace and Agnikul Cosmos.

Why is Thoothukudi important in the new investment pipeline?

Thoothukudi is attracting major projects in data centres and aerospace, including Lighthouse Green Data Centre’s ₹10,000-crore proposal and investments from Skyroot Aerospace and Agnikul Cosmos.

What is the total investment commitment attracted by Tamil Nadu in the first 100 days?

According to the state government, cumulative investment commitments reached ₹1,02,514 crore in the first 100 days, with projected employment of 1,21,788 people.

Knowledge Base

Flavours

Add-ons

GST

Rich Logistics IT-Infrastructure Management

Open Source Logistics IT – Infrastructure Management

Out Source Your Logistics Documentation and Save Cost

WEB – Design & Development (www.goforwebsite.com)

Vertical Solutions to SCM Service Providers

Manufacture

At a Glance

What Has Changed in India’s Rupee Export Settlement Rules?

Previous Rules Compared With the Revised Framework

Area

Earlier position

Revised position

Export contract

INR invoicing was possible, but rupee realisation was allowed only under specified conditions

Eligible contracts can be denominated in INR or foreign currency

Export invoice

Could be raised in INR in permitted cases

INR invoicing is clearly recognised for eligible exports

Export payment

Export proceeds were generally expected in freely convertible currency, with limited INR exceptions

Eligible payments can be received in INR or foreign currency

FTP benefits

Uncertainty existed over the treatment of some rupee receipts

Eligible INR receipts can qualify for FTP benefits

Export obligations

Treatment of rupee realisations could discourage INR settlement

Eligible INR receipts can count towards export-obligation fulfilment

Government-supported exports

Specific provisions applied

EXIM Bank and Government of India line-of-credit exports may be invoiced in INR

ACU markets

Separate settlement rules applied

Separate ACU provisions continue

How Can Exporters Receive International Payments in INR?

Why Does the DGFT Amendment Matter to Exporters?

Which Transactions Have Separate Rules?

Will the New Rules Increase International Use of the Rupee?

What Should Exporters Do Before Choosing INR Settlement?

Frequently Asked Questions

Key Highlights

Rapeseed Meal Drives the May Recovery

Oilmeal Export Performance

Period

Export volume

Year-on-year change

May 2026

3.73 lakh tonnes

0.1841

April–May 2026

7.39 lakh tonnes

−5.37%

April–May 2025

7.81 lakh tonnes

-

April–May 2025

Not specified

24.61%

Monthly Oilmeal Export Comparison

Freight Costs Affect Export Competitiveness

What Could Influence Oilmeal Exports?

Frequently Asked Questions

Important Points

India’s Oilmeal Export Performance

Period

Export volume

Year-on-year change

April 2025

4.66 lakh tonnes

—

May 2025

3.15 lakh tonnes

—

April 2026

3.66 lakh tonnes

Down 21.46%

May 2026