More than USD 5 bn to boost export competitiveness

India’s cabinet approved two schemes with a total outlay of INR 450 bn (USD 5.13 bn) to bolster export competitiveness in labor-intensive sectors, according to a statement. An INR 200 bn (USD 2.9 bn) credit-guarantee scheme will be executed through March 2026, providing up to INR 500 mn in loans without collateral to cushion exporters from the impact of recent US tariff hikes. The second package comprises INR 250 bn (USD 2.8 bn) in spending over six years for affordable trade finance, logistics upgrades and market-access support to small businesses, first time exports, and labor intensive manufacturers.

Tariffs hurt small exporters: The punitive 50% duties from the US have sharply eroded margins in textiles, jewellery, chemicals, and seafood industries. Merchandise exports to the US fell 12% y-o-y in September, Reuters reports. Exporters warned that 55% of India’s US shipments, worth some USD 48 bn, now face a structural cost disadvantage from competitors like Vietnam, China, and Bangladesh, even as Washington signals it is close to a trade deal. These new schemes are aimed at cushioning the export-oriented manufacturers from the tariff bite.

India wants to lure investment in critical minerals

India has approved a broad overhaul of royalty rates for critical minerals in a move aimed at attracting investment and expanding domestic mining capacity, Bloomberg reports. The changes set market-linked royalties for minerals including graphite and introduce first-time royalty rates for caesium, rubidium, and zirconium.

What changed? Royalty on graphites — used in batteries, steelmaking, and industrial applications — will now be calculated as a percentage of sales prices determined by the Indian Bureau of Mines, replacing the earlier fixed per-tonne structure. The government also set the royalty rates for caesium, zirconium, and rubidium, elements that previously had no specified royalty mechanism.

Why it matters: The government said the shift to market-linked royalties will help companies place more rational bids in mineral auctions and strengthen domestic supply chains by reducing import reliance. India currently imports about 60% of its graphite needs, while output of other critical minerals remains limited. The shift is part of New Delhi’s effort to cut reliance on China, which dominates the refining and processing of several of these minerals.

Next steps: The revised royalty rates will apply to upcoming mining auctions, and the government expects the market-linked structure to help bidders submit more rational offers, according to the official statement. The move is aimed at boosting domestic output and reducing import dependence as India seeks to strengthen its position in global critical-mineral supply chains.

Ajman courts Indian investors

The Ajman NuVentures Centre Zone (ANVC) in the UAE aims to register over 10k companies by 2026, with nearly half expected to come from Indian investors, Press Trust of India reports. ANVC plans to hold roadshows in New Delhi, Bengaluru, and Mumbai to attract businesses from India. Some India-based exporters that depend heavily on the US market have begun shifting parts of their operations to the UAE to offset higher American tariffs and leverage the Emirates’ tax-friendly regime, Deccan Herald reports.

RAK lures Ashok Leyland

India-headquartered commercial vehicle manufacturer Ashok Leyland’s electric-mobility subsidiary Switch Mobility has shut its manufacturing plant in Sherburn, UK, and will shift production to its facility in Ras Al Khaimah (RAK), UAE, Times of India reports. The UAE is positioning RAK as a manufacturing base for next-generation mobility, according to RAKEZ & Automobilwoche.

AirTrunk likes India — and Saudi Arabia

Australia-based hyperscale data center operator AirTrunk — owned by US investment firm Blackstone — plans to build its next data center in India, Bloomberg reports. The project is already “pretty advanced,” and comes amid rising AI-driven computing demand across the region, making India an attractive expansion market, Air Trunk CEO Robin Khuda said.

AirTrunk and Saudi Arabia’s Humain (also backed by Blackstone) have announced a USD 3 bn data center campus in the Kingdom, marking AirTrunk’s regional debut, according to Blackstone.

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