2026

Govt. pegs FY26 growth at 7.4% amid tariff concerns

Context: Higher estimate comes amid uncertainties and 50% U.S. tariffs hitting labour-intensive sectors hard; with Q1 and Q2 growing at 7.8% and 8.2%, second half will see average growth slow to 6.8%.

• The Union government has estimated that real growth in the Gross Domestic Product (GDP) of the country will stand at 7.4% in the current financial year 2025-26, up from 6.5% recorded the previous year.
• In the First Advance Estimates (FAE) of GDP for 2025-26, released by the Ministry of Statistics and Programme Implementation, the government said that nominal growth for the year would be 8%.
• The FAE for any year is important as it forms the basis for various calculations and ratios used in preparing the Union Budget.
• The First Advance Estimates, and the Second Advance Estimates, which will be released on February 27, are forecasts of the full year’s growth based on data available up to that point. The Provisional Estimates for 2025-26, based on the full-year’s data, will be released on May 30.
• Based on the Centre’s assessment that the full year’s growth would be 7.4%, and the fact that Q1 and Q2 saw 7.8% and 8.2% growth respectively, the second half of the year would see average growth slow to 6.8%. 

Braving headwinds

• In December, the Reserve Bank of India had said that GDP growth in 2025-26 would be 7.3%, with Q3 growing at 7% and Q4 at 6.5%.
• These projections come at a time when India’s economy is facing several headwinds. The 50% tariff levied by the U.S. on imports from India has hit several labour-intensive sectors such as apparel, textiles, and engineering goods.
• The government has tried to boost consumer demand through both direct tax and indirect tax rate cuts, but the data show it nevertheless expects Private Final Consumption Expenditure, a metric that captures consumer spending, to grow at 7% in 2025-26, marginally slower than the 7.2% recorded last year.
• The mining and quarrying sector is estimated to contract in 2025-26 by 0.7%, as compared to a growth of 2.7% the previous year.
• The tertiary sector, which comprises the service sectors, is expected to see growth quicken to 9.1% in 2025-26 from 7.2% in 2024-25. Within this, the ‘financial, real estate and profession services’, and the ‘public administration, defence, and other services’ sub-groupings are both expected to grow at 9.9% in 2025-26.
• The ‘trade, hotels, transport and communication’ category is expected to grow at a relatively slower 7.5% in 2025-26, although this is faster than the 6.1% seen in 2024-25.
• Gross Fixed Capital Formation, on the other hand, is expected to grow at 7.8% in 2025-26, faster than the 7.1% seen in 2024-25.

Source: The Hindu

‘Solar module manufacturing more than doubled in 2025’

Context: India’s solar module manufacturing has increased to more than twice since last year, Union Minister for New and Renewable Energy. Solar module manufacturing has increased 128.6% on a year-over-year basis to 144 gigawatts (GW) in 2025. It stood at 63 GW in 2024. This implies that India added 81 GW-worth of capacity in the previous year.

Government initiatives such as PM-Surya Ghar, solar parks, and international collaborations through the International Solar Alliance (ISA) have positioned India as the third-largest solar power producer worldwide.

🌞 Solar Energy in India: Growth, Achievements, and Future Pathways
📌 Current Status
Installed Capacity: India’s solar installed capacity crossed 130 GW in November 2025, up from 94 GW in 2024, marking a 41% growth in one year.

Manufacturing Expansion: Solar module manufacturing more than doubled in 2025, rising from 63 GW in 2024 to 144 GW in 2025, a 128.6% increase.

Global Ranking: India overtook Germany in 2024 to become the third-largest generator of wind and solar power, producing over 108,494 GWh of solar electricity, surpassing Japan.

🏛️ Government Initiatives
PM-Surya Ghar: Over 8.5 lakh rooftop installations completed by January 2025, aiming to power 10 million households with solar energy.

Solar Parks & Ultra-Mega Projects: Over 3 GW commissioned in 2025 under the Solar Parks scheme.

International Solar Alliance (ISA): India hosted the 8th ISA Assembly in October 2025, strengthening global cooperation on solar technology and finance.

Policy Push: India achieved 100 GW solar capacity milestone in February 2025, five years ahead of its COP26 commitment.

📊 Key Achievements: India’s Solar Capacity

☀️ India’s Solar Energy: Current Status (Jan 2026)
India achieved a major milestone in 2025 by reaching 50% non-fossil fuel capacity five years ahead of the 2030 target.

🏭 Solar Manufacturing & Industry Growth
Through the Production Linked Incentive (PLI) scheme, India has moved from an importer to a dominant manufacturer.

🏠 Major Solar Schemes & Implementation

🎯 Roadmap to 2030 (The “Panchamrit” Goal)

🌍 Significance
Energy Security: Solar is India’s most secure energy source, abundantly available across regions.

Climate Goals: India achieved 50% renewable share of total installed capacity (484 GW) by 2025, five years ahead of target.

Economic Impact: Expansion of solar manufacturing reduces import dependence, creates jobs, and boosts domestic industry.

Global Leadership: India is now a founding leader of ISA, influencing solar deployment across 125+ nations.

⚠️ Challenges Ahead
Land Acquisition: Large-scale solar parks face land hurdles, prompting PSUs to form joint ventures with states.

Grid Integration: Need for stronger payment security and wholesale market reforms to integrate solar efficiently.

Rooftop Adoption: Despite potential of 637 GW residential rooftop capacity, adoption rates remain low (national willingness ~5%).

Storage & Transmission: Scaling battery storage and transmission infrastructure is critical for balancing intermittent solar supply.

✨ Conclusion
India’s solar journey reflects a bold leap toward a net-zero future, with achievements like 100 GW solar capacity, 144 GW manufacturing, and global leadership through ISA. While challenges in land, grid integration, and rooftop adoption remain, India’s trajectory shows it is well on course to meet its 500 GW renewable energy target by 2030 and long-term vision of 1,800 GW green energy by 2047.

Source: The Hindu

Ministry for doubling auto PLI allocationto ₹5,800 crore

Context: As the scheme, in its third year now, is production-linked, higher output levels necessitate a corresponding scale-up in incentives.

• The Ministry of Heavy Industries (MHI) has proposed doubling the allocation for the Production Linked Incentive (PLI) scheme for automobiles and auto component manufacturers to ₹5,800 crore in the upcoming financial year. The scheme had received ₹2,818.85 crore in FY 2025-2026.
• The PLI auto scheme incentivises local production of only those products that achieve a domestic value add (DVA) of 50%. The scheme was focused on zero emission vehicles (ZEVs), i.e., battery electric vehicles and hydrogen fuel cell vehicles.
• The scheme was announced in 2021, but FY 2023-24 was the first performance year, and an amount of ₹322 crore was disbursed to four approved applicants in FY 2024-25. For the performance year 2024-25, a total amount of ₹1,999.94 crore was disbursed for five approved applicants.
• Looking ahead, the target allocation for FY 2027-28 is nearly ₹8,000 crore, increasing to ₹9,500 crore in the fifth year.
• These allocations are aimed at achieving the total outlay of ₹25,938 crore as defined when the scheme was launched in 2021.
• Explaining the rationale behind seeking doubling of allocation, that in the initial years, the OEMs were focused on setting up manufacturing plants, which required substantial capital investment. Now, in the third year of the scheme, the focus would be on ramping up production output. As the scheme is production-linked, higher output levels necessitate a corresponding scale-up in incentives.

Source: The Hindu

ISRO calls for proposals from Indian scientists to analyse data from Aditya-L1

Context: On the second anniversary of India’s maiden solar mission Aditya-L1 reaching the Lagrangian point (L1), the Indian Space Research Organisation (ISRO) made the Announcement of Opportunity (AO) soliciting proposals for the first AO cycle observations.

• The Aditya-L1 spacecraft reached the L1 point on January 6, 2024, 127 days after it was launched on September 2, 2023, and since then has been making continuous and comprehensive observations of the Sun from the Sun–Earth L1 point.
• According to ISRO, scientific data from the mission are regularly released in public domain for global scientific utilisation.

To maximise return

• “At present there are more than 23 TB data in public domain and several important scientific results have been published in International peer reviewed journals. To further maximise the scientific return from this unique mission, the ISRO has released the first AO inviting proposals from the Indian solar physics community for Aditya-L1 observation time,” ISRO said.
• It added that this L1 point, located approximately 1.5 million kilometers away from Earth, offers the unique advantage of continuous, uninterrupted observation of the Sun, free from eclipses or occultation.

Source: The Hindu

EC says it has constitutional duty to bar foreigners from voter rolls

Context: Poll body defends SIR in the Supreme Court, insists it has power to verify citizenship status under the Constitution; it calls claims of the exercise being a ‘parallel NRC’ ‘rhetoric’, says roll revision counts only legal adults unlike citizenship register.

• The Election Commission of India (EC) began its defence of the ongoing special intensive revision (SIR) of electoral rolls before the Supreme Court by dismissing claims that it is conducting a “parallel” National Register of Citizens (NRC) as sheer “rhetoric”.
• The poll body maintained that it has the “constitutional power, even a constitutional duty” to ensure that not a single foreigner, as far as possible, occupies space in the nation’s electoral rolls.
• The SIR kicked off in Bihar last year and expanded to cover 12 more States and Union Territories in the ongoing second phase.
• “We have a constitutional duty, and not just a constitutional power, to ensure no foreigners are there on the electoral rolls. It is not important how many foreigners are found… It was repeatedly asked of us to show how many foreigners were found in Bihar, but that is not important.
• Even if there was one foreigner, he had to be excluded. We are not concerned with the rhetoric of the political parties. They may be right or wrong. As the Election Commission, it is our constitutional duty to ensure there are no foreign voters as far as possible,” senior advocate Rakesh Dwivedi, appearing for the EC, clarified before a Bench headed by Chief Justice of India Surya Kant.
• Mr. Dwivedi said the comparison of the SIR with the NRC was devoid of truth.

Faulty comparison

• In the NRC, “all citizens”, even those of unsound mind, were tallied, the EC said. In the SIR, only those 18 years and above were counted. The EC differentiated between the NRC conducted in Assam and the “special revision” of electoral rolls underway in the State.
• The petitioners, who included Opposition parties and States, had argued that the SIR was merely a “citizenship drive” and a parallel NRC.
• “Of course, rhetorically it was said we are carrying out a ‘parallel’ NRC. The NRC register includes all the people, all citizens, whereas, in electoral rolls it is citizens who are above 18 years of age. Less than that they are not in the electoral roll. A person of unsound mind is excluded from the electoral roll, but is part of the NRC. Preparation of the electoral roll is not a parallel NRC on the face of it,” Mr. Dwivedi contended.
• The senior counsel argued that it was for the Centre to issue a ‘national identity card’ and maintain a ‘National Register of Indian Citizens’ and, for that purpose, establish a National Registration Authority under Section 14A of the Citizenship Act, 1955. On the other hand, the EC drew its power to verify citizenship for the “preparation of the electoral rolls” under Article 324 of the Constitution.

Citizenship status

• “All the important functionaries of the three organs of governance have to be citizens of India, be it the President, Vice-President, MPs, MLAs, or judges of the constitutional courts… No person is eligible to participate in the electoral process unless he is a citizen,” Mr. Dwivedi said.
• Addressing the petitioners’ submission that citizenship was exclusively the domain of the Union government, the EC counsel pointed to Section 9(2) of the Citizenship Act. “The Central government has exclusive jurisdiction only with termination of citizenship on account of voluntary acquisition of foreign citizenship under this provision,” Mr. Dwivedi submitted.
• He said the EC was not foreclosed from “deviating” while revising electoral rolls, provided it recorded the reasons. In SIR 2025, the reasons included rapid urbanisation and migration with an eye to preserving the purity of the electoral rolls.

Source: The Hindu