Daily News - Thursday, 07 May 2026

India clears USD $6 Billion package to support businesses in shipping, railways, electronics and aviation (mint)

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a ₹50,000 crore (USD $6.0 billion) package under the Emergency Credit Line Guarantee Scheme (ECLGS 5.0) to support businesses hit by the West Asia crisis. The scheme is expected to unlock an additional ₹2.55 trillion (USD $30.6 billion) in credit flow, with a special allocation of ₹5,000 crore (USD $600 million) for the aviation sector. It offers a 100% guarantee for MSMEs and 90% coverage for non-MSMEs and airlines, with loans capped at ₹100 crore (USD $12 million) per borrower and up to ₹1,500 crore (USD $180 million) for airlines. Borrowers can access up to 20% of peak working capital used in Q4 FY26, with loan tenors of five years for MSMEs (one year moratorium) and seven years for airlines (two‑year moratorium). The scheme carries no guarantee fee, reducing borrowing costs and ensuring wider access to credit. Information & Broadcasting Minister Ashwini Vaishnaw highlighted that the package covers shipping, railways, electronics, and aviation, while industry leaders welcomed it as a timely intervention to sustain operations and employment.

India aims $25 Billion trade with Vietnam by 2030 (Reuters)

During Vietnamese President To Lam’s first state visit to New Delhi, Prime Minister Narendra Modi announced that India is targeting $25 billion in bilateral trade with Vietnam by 2030, up from the current $16 billion recorded in FY26. The two countries upgraded their ties to an enhanced comprehensive strategic partnership, signaling deeper cooperation in critical minerals, rare earths, and energy security. Modi emphasized that these initiatives will strengthen economic security and supply chain resilience for both nations. The talks also highlighted Vietnam’s role as a key partner in India’s Act East Policy, with trade expansion seen as vital for regional stability. The partnership is expected to involve ministries of Commerce & Industry, External Affairs, and Energy, aligning with India’s broader Indo-Pacific strategy. This move positions India and Vietnam as stronger economic allies, with a clear roadmap to scale trade by nearly 56% over the next four years.

India survey shows women employ nearly 60% of informal manufacturing firms (moneycontrol)

The Annual Survey of Unincorporated Sector Enterprises (ASUSE) by the Ministry of Statistics and Programme Implementation (MoSPI) shows women are increasingly leading India’s informal manufacturing sector. In 2025, women made up 48.3% of workers in unincorporated manufacturing enterprises, but their leadership role was even stronger 60.4% of firms were headed by women, up from 58% in 2024. The survey highlights that 72% of female led establishments hired at least one female worker, underscoring their role in creating jobs for women. Women entrepreneurs are particularly active in textiles, garments, food processing, and handicrafts, driving growth in rural and semi‑urban supply chains. MoSPI emphasized that female led firms are expanding faster than male owned ones in certain subsectors, strengthening household incomes and local economies. Policymakers see this as a key driver of inclusive growth, with calls for targeted support from the Ministry of MSME and Ministry of Labour & Employment to sustain momentum.

India’s offshore tech hubs generate $98.4 Billion in FY26 (Reuters)

India’s offshore technology hubs generated USD $98.4 billion (₹8.2 trillion) in revenue in FY26, nearly touching the 2030 forecast of $99-105 billion, according to a joint report by Nasscom and Zinnov. The country added 100 new Global Capability Centres (GCCs) in FY26, bringing the total to 2,117 centres employing 2.36 million people. Major global firms such as JPMorgan Chase, Nvidia, McDonald’s, Anthropic, Eli Lilly, FedEx, Marriott, and Lufthansa expanded operations in India, shifting high-value work like finance, R&D, and AI development. North American companies drove two-thirds of new GCCs, citing higher U.S. visa costs, inflation, and AI disruption as reasons for relocating strategic work to India. Recent expansions by BASF, eBay, and Revolut further highlight India’s appeal as a global tech hub. The report underscores India’s AI-ready workforce, supportive tax policies, and scalable operating models as key enablers of this rapid growth.