India

Hindu Business Line | English | News | Jan. 23, 2026 | Regulation

The Ministry of Defence (MoD) of India is set to release the first draft of the revised Defence Acquisition Procedure (DAP) 2020 within the next 15 days for stakeholder feedback. This revision aims to simplify and shorten the capital acquisition process, targeting a reduction in procurement time to approximately two years by enabling parallel processing of activities. The revised DAP is planned for implementation from April 1, 2026, aligned with the expected increase in the defence budget for FY27.

Key reforms include a gradual scaling of indigenous content requirements for high-technology orders, rather than an upfront high threshold, with potential merging of Buy (Indian) and Buy (Indian-IDDM) categories to simplify procurement processes. The procedure will support ‘Atmanirbhar Bharat’ and ‘Make in India’ initiatives, incorporate emerging technologies such as AI and quantum computing, and strengthen indigenous defence manufacturing.

The revised DAP will also provide greater flexibility for foreign direct investment (FDI) in defence, though the current allowance of 100 percent FDI faces opposition from domestic industry for potentially undermining self-reliance goals. Simplified testing procedures will accept certificates of conformance from accredited labs for non-core parameters, and the revised policy will introduce defence space procurement provisions to tap into India’s growing space economy.

The overarching objective of the DAP review is to position India as a global hub for defence manufacturing and Maintenance, Repair, and Overhaul (MRO), promoting design and development across public and private sectors, with a focus on startups, innovators, and private industry involvement.

Hindu Business Line | English | News | Jan. 23, 2026 | UndeterminedBizdev-Partnering

TATA Group Chairman N Chandrasekaran expressed strong interest in investing in Telangana during a meeting with Chief Minister A Revanth Reddy at the World Economic Forum summit in Davos. The group plans to set up new manufacturing plants in the state and support government initiatives such as the rejuvenation of the Musi river.

The Telangana delegation presented their “Telangana Rising 2047” vision, which includes upgrading major stadiums in Hyderabad, a project TATA has agreed to support. The group also plans to invest in the hospitality sector by establishing hotels in key temple towns like Medaram, Vemulawada, and Bhadrachalam.

Discussions included a world-class resort on the expanding Srisailam highway, leveraging local attractions and infrastructure suitable for business conferences. TATA is ready to partner on this resort initiative. Additionally, the group is optimistic about future investments in AI data centers, semiconductor production, and electric vehicle manufacturing in Telangana.

The Hindu | English | News | Jan. 23, 2026 | UndeterminedEconomic Growth

Union Minister Ashwini Vaishnaw stated at the World Economic Forum in Davos on January 21, 2026, that India is set to become the world's third-largest economy in the coming years. Economist Gita Gopinath supported this projection, suggesting the milestone could be reached by 2028 or earlier. Vaishnaw highlighted four pillars driving India’s growth: public investment in physical, digital, and social infrastructure; inclusive societal growth; manufacturing and innovation; and simplification measures. He forecasted India’s growth rate at 6-8% with moderate inflation over the next five years, underpinned by strong technology platforms and inclusive policies that have lifted 250 million people out of poverty.

Both Vaishnaw and Gopinath expressed concern over the potential global impact of high debt levels in wealthy nations, particularly referencing Japan’s recent bond market turmoil. Despite such external risks, they remain confident in India's trajectory toward economic prominence. Gopinath emphasized that the main challenge lies in raising India’s per capita income and achieving long-term development goals by 2047, which will require continued reforms in land acquisition, judicial processes, labor market flexibility, and skill development.

Industrialist Sunil Bharti Mittal echoed the optimistic outlook, noting the importance of a stable and supportive business environment and the growing domestic market. He acknowledged the challenge posed by heightened global competition and the lack of a large foreign market similar to the US for China, stressing the need for India to forge new trade agreements, including with the EU and potentially the US.

Vaishnaw also addressed concerns regarding high US tariffs, emphasizing India’s economic resilience and success in diversifying export markets. He noted India has become an important value chain partner globally, enabling export growth despite protectionist measures elsewhere. Gopinath highlighted pollution as a significant economic and health challenge requiring urgent attention as part of India's developmental agenda.