India’s merchandise exports rose approximately 15% in April-June 2026, reaching $45.2 billion in May alone — a six-month high — despite global economic uncertainties and US tariff headwinds. During April-May, exports increased 16.09% to $88.91 billion. April exports hit $43.6 billion, the highest monthly level in over four years. Non-petroleum exports rose 11%, demonstrating that the growth is broad-based rather than commodity-driven. Commerce Minister Piyush Goyal attributes the resilience to India’s expanding trade agreement network and diversified export markets. For trade promotion organisations, exporters and foreign companies sourcing from India, these numbers mark a structural shift in India’s export competitiveness. T&A Consulting helps businesses and governments leverage India’s trade corridors for export growth and supply chain optimisation.

Introduction: Exports Growing Despite Tariff Headwinds

India’s Q1 FY27 (April-June 2026) export performance is remarkable in context. It comes despite the US imposing an 18% effective tariff on Indian goods (reduced from 50% in February 2026 but still significantly above the pre-2025 baseline), the West Asia conflict disrupting shipping routes through the Red Sea, global demand softening in Europe and continued supply chain realignments. That exports grew 15% in this environment signals that India’s export engine is becoming more resilient, diversified and competitive.

The government anticipates further gains once the first phase of the comprehensive bilateral trade agreement with the US concludes, removing temporary 10% tariffs under Section 301 investigations from July 24. The India-EU FTA (expected to enter force in early 2027) and the India-EFTA TEPA (in force since October 2025) are expected to accelerate export growth further as tariff reductions take effect.

What Is Driving the Export Surge

• Trade agreement dividends. The India-UK CETA (99% duty-free access), India-EFTA TEPA (tariff concessions plus $100 billion FDI commitment), India-Australia ECTA (85%+ tariff elimination) and the US interim deal (zero tariffs on gems, pharma, smartphones, handicrafts) are collectively opening new export corridors. The India-EU FTA, once in force, will add the world’s largest free trade zone to India’s preferential market access network.
• PLI scheme output. Manufacturing output under PLI schemes is translating into export volumes, particularly in electronics (mobile phone exports exceeding $15 billion), pharmaceuticals, textiles and auto components. The PLI model’s production incentives are directly linked to incremental sales, creating an export-oriented manufacturing base.
• China plus one supply chain shifts. Global companies diversifying supply chains away from China continue to source increasing volumes from India. This is particularly evident in electronics, engineering goods, chemicals and textiles where Indian manufacturers are capturing orders previously held by Chinese suppliers.
• Petroleum and non-petroleum balance. While petroleum product exports benefited from elevated global oil prices, non-petroleum exports grew 11% — demonstrating that India’s export growth is driven by manufacturing competitiveness, not just commodity price cycles.
• Digital infrastructure enabling smaller exporters. India’s DPI stack (GSTN for tax compliance, UPI for payments, ONDC for discovery) is reducing the friction for MSMEs to participate in export markets. The TReDS platform for receivables discounting is improving MSME cash flows, enabling them to fulfil larger export orders.

Sector-Level Export Performance

• Electronics and smartphones. India’s fastest-growing export category. Mobile phone exports alone exceeded $15 billion in FY 2025-26, driven by Apple’s manufacturing expansion through Foxconn, Pegatron and Tata Electronics. The zero-tariff treatment for smartphones under the US interim deal further strengthens this trajectory.
• Pharmaceuticals. India supplies over 20% of the world’s generic medicines. Zero reciprocal tariffs under the US interim deal and tariff elimination under the India-EU FTA protect and expand this position. India’s pharma exports are valued at approximately $28 billion annually.
• Engineering goods. India’s largest export category to the US by value, covering auto components, industrial machinery, electrical equipment and fabricated metals. The tariff reduction from 50% to 18% (and potentially 10%) has restored competitiveness.
• Textiles and apparel. India’s $40+ billion textile industry benefits from duty-free access to the UK under CETA, tariff reductions under the EU FTA and zero-tariff treatment for MSME-driven handicrafts under the US deal.
• Gems and jewellery. India processes over 90% of the world’s diamonds and is the largest exporter of cut and polished stones to the US. Zero reciprocal tariffs under the US deal and tariff elimination under the EU FTA support continued growth.
• Chemicals. Full and immediate tariff elimination on Indian chemicals under the India-UK CETA positions India competitively in the UK’s $28 billion chemicals market, with industry estimates suggesting a 30-40% increase in Indian chemical exports to the UK.

Implications for Trade Promotion Organisations

• Update export promotion priorities. The data shows that India’s export growth is diversifying across both products and markets. TPOs should align their promotion efforts with the sectors and markets where trade agreements deliver the greatest tariff advantage.
• Support MSME exporters. The World Bank’s $1.5 billion DPF operation specifically supports MSME financing and market access. TPOs should design programmes that help MSMEs navigate export documentation, quality standards and trade agreement utilisation.
• Leverage the ECTA/CECA pipeline. The India-Australia CECA, once concluded, will add another preferential market. TPOs should begin preparing exporters for Australian market access opportunities, particularly in processed food, textiles and engineering goods.
• Monitor US BTA developments. The removal of Section 301 tariffs from July 24 and the ongoing comprehensive BTA negotiations will further shape India’s export trajectory to the US.

Implications for Foreign Companies Sourcing from India

• Competitive pricing. India’s combination of PLI-incentivised manufacturing, trade agreement tariff benefits and competitive labour costs makes Indian-sourced goods increasingly price-competitive against Chinese and ASEAN alternatives.
• Diversification advantage. Companies sourcing from India can access preferential tariffs in the EU, UK, EFTA, ASEAN, Japan, South Korea, UAE, Australia and (with caveats) the US — a multi-market sourcing platform.
• Quality improvements. PLI scheme requirements for domestic value addition and quality standards are driving up manufacturing quality. India’s growing base of NABH, JCI and ISO-certified facilities reflects this trend.
• Supply chain resilience. India’s geographic distance from both the Taiwan Strait and Red Sea shipping chokepoints provides a diversification benefit for companies seeking supply chain resilience.

How T&A Consulting Supports Export and Sourcing Strategy

T&A Consulting provides advisory for businesses and organisations operating within India’s export ecosystem:

• Export strategy development. We design export strategies for Indian companies targeting specific markets, incorporating trade agreement provisions, tariff optimisation and market access requirements.
• Sourcing advisory. We help foreign companies identify and evaluate Indian suppliers, manage quality requirements and optimise sourcing costs across trade agreement corridors.
• Trade agreement utilisation. We help exporters and importers understand and utilise rules of origin, tariff schedules and preferential access provisions across India’s FTA network.
• MSME supplier development. We support foreign companies in developing Indian MSME suppliers, including quality upgrading, compliance support and capacity building.
• Trade promotion campaigns. We design and execute trade promotion campaigns for governments and export promotion bodies targeting specific India export sectors and markets.

Contact us at: pnijhawan@taglobalgroup.com to explore India sourcing and export opportunities.

Sources & references:
Banking Finance, IBEF, Business Standard, Ministry of Commerce, PIB

India is now the world’s third-largest startup ecosystem, with over 207,000 DPIIT-recognised startups, 100+ unicorns, 21.9 lakh direct jobs created and nearly half of all startup activity coming from Tier-2 and Tier-3 cities. Budget 2026 extended the eligibility period for deep-tech startups to 20 years, raised the revenue threshold to Rs 3 billion and launched a Rs 100 billion government-backed venture fund. The strongest sectors are fintech, healthtech, agritech, SaaS, e-commerce, logistics and applied AI. For foreign companies, investors and economic development agencies, India’s startup ecosystem creates partnership, investment and co-innovation opportunities at unprecedented scale. T&A Consulting helps foreign organisations engage with India’s startup ecosystem for strategic partnerships, investment and technology access.

Introduction: Scale, Depth and Geographic Spread

India’s startup ecosystem has reached a critical inflection point. The numbers alone demand attention: from fewer than 500 recognised startups in 2016 to over 207,000 by December 2025, the growth has been exponential. But the qualitative transformation is equally significant. India is no longer producing only consumer internet copycats of Silicon Valley models. It is building deep-tech companies in AI, robotics, semiconductor design, climate technology and biotech; enterprise SaaS platforms serving global customers; and fintech infrastructure that processes billions of transactions monthly.

The geographic democratisation is particularly noteworthy. Nearly 50% of recognised startups now come from Tier-2 and Tier-3 cities — Jaipur, Pune, Kochi, Indore, Lucknow, Coimbatore and dozens of others. This distribution reflects the spread of digital infrastructure (5G, broadband, UPI), the availability of affordable co-working spaces, the preference of many founders to build close to their markets and families, and state-level policies that incentivise startup creation outside metros.

Sector Strengths: Where India’s Startups Lead

• Fintech. India’s fintech ecosystem is arguably the world’s most vibrant, built on the UPI payments rail that processes over 21 billion transactions monthly. Startups span lending (capital flow, BNPL, invoice financing), insurance (parametric, embedded), wealth management (robo-advisory, fractional investing), neo-banking and cross-border payments.
• Enterprise SaaS. Indian SaaS companies generate over $16 billion in annual revenue, with companies like Zoho, Freshworks and Postman achieving global scale. The next wave includes vertical SaaS for healthcare, manufacturing, logistics and agriculture.
• Healthtech. Post-pandemic healthtech startups span telemedicine, diagnostic AI, hospital management systems, drug discovery and medical device development. The Ayushman Bharat Digital Mission provides a public health data layer that healthtech startups can build on.
• Agritech. India’s agricultural sector employs over 40% of the workforce and is ripe for technology-led transformation. Startups address precision farming, supply chain transparency, farm-to-fork logistics, agricultural lending and crop advisory services.
• Climate tech and clean energy. India’s 500 GW renewable energy target, EV adoption trajectory and carbon reduction commitments are creating a large and growing climate tech startup sector covering solar, batteries, green hydrogen, carbon capture and sustainable materials.
• Applied AI. India ranks second globally in contributions to public generative AI projects. Startups are building AI applications for customer service, legal tech, content generation, manufacturing quality control and agricultural advisory.

Policy Architecture: How the Government Supports Startups

• Startup India programme. DPIIT’s flagship initiative provides recognition, tax benefits, simplified compliance and access to government procurement for qualifying startups.
• Extended eligibility. Budget 2026 extended the eligibility period for deep-tech startups to 20 years (up from 10) and raised the revenue threshold to Rs 3 billion, recognising that deep-tech companies require longer gestation periods.
• Rs 100 billion venture fund. A government-backed venture programme targeting high-risk areas including AI, advanced manufacturing, semiconductor design and climate technology.
• Fund of Funds for Startups (FFS). SIDBI-managed fund that invests in SEBI-registered AIFs that in turn invest in startups, catalysing private capital into the ecosystem.
• Atal Innovation Mission. Network of Atal Tinkering Labs (10,000+ schools) and Atal Incubation Centres (over 80 universities) creating grassroots innovation infrastructure.
• DPIIT recognition benefits. Tax holiday for three consecutive years within the first ten years, self-certification for labour and environment compliance, fast-tracked patent examination and exemption from angel tax.

Funding Landscape: What Investors Should Know

India’s startup funding ecosystem has matured significantly. While 2026 has seen a rebalancing after the 2021 peak, the underlying fundamentals are strong. Investors are screening harder for retention, unit economics, ownership clarity and compliance — a healthy maturation that favours quality over hype. Key trends include:

• Early-stage selectivity. Seed and pre-Series A funding remains available but requires demonstrable product-market fit, clean cap tables and credible unit economics. The era of funding on decks alone has ended.
• Growth-stage confidence. Series B and beyond funding is flowing to companies with proven business models, particularly in SaaS, fintech and enterprise AI. Corporate venture capital (CVC) from global companies is an increasingly important source.
• Deep-tech emergence. Government-backed venture funds and specialised investors (Lightrock’s $500M Accelerate7 fund for clean energy/mobility) are de-risking deep-tech investment.
• Geographic diversification. Investors are increasingly backing startups outside Bengaluru and Delhi-NCR, recognising talent and cost advantages in Tier-2 cities.

Opportunities for Foreign Companies

• Strategic partnerships. Foreign corporates can partner with Indian startups for technology access, market entry and co-innovation. India’s startup ecosystem offers solutions across almost every industry vertical at significantly lower cost than equivalent Western startups.
• Corporate venture capital. CVC arms of global companies can invest in Indian startups for strategic exposure to Indian innovation, market intelligence and potential M&A pipeline development.
• Accelerator and incubator collaboration. Foreign organisations can partner with Indian accelerators and incubators to source innovation, mentor startups and build India relationships.
• Talent and acqui-hiring. Acquiring Indian startups for their talent, technology and IP is an increasingly common strategy for global technology companies.
• Distribution and market access. Indian startups seeking international expansion need distribution partners, regulatory expertise and market access in foreign markets — creating a natural complementarity.

How T&A Consulting Supports Startup Ecosystem Engagement

T&A Consulting helps foreign organisations engage productively with India’s startup ecosystem:

• Startup scouting and mapping. We identify Indian startups aligned with a foreign company’s strategic interests, technology needs or investment criteria.
• Partnership facilitation. We structure and facilitate partnerships between foreign corporates and Indian startups, covering pilot programmes, licensing, JVs and strategic investments.
• Investment advisory. We support foreign VCs and CVCs evaluating Indian startup investments, providing due diligence support, market context and regulatory guidance.
• Accelerator design. We help foreign organisations design India-focused accelerator programmes, including startup selection, mentorship and demo day execution.
• Policy and regulatory navigation. We guide foreign investors through DPIIT startup recognition, FEMA compliance, tax implications and exit mechanisms for India startup investments.

Contact us at: pnijhawan@taglobalgroup.com to explore startup ecosystem opportunities in India.

Sources & references:
Startup India, IBEF, Entrackr, Mean CEO, PIB

The World Intangible Investment Report 2026, published by WIPO and Luiss Business School on 8 July 2026, ranks India as the fastest-growing major economy in intangible investment, with spending on software, R&D, intellectual property and organisational capabilities reaching $78.2 billion in 2023 — a 7.9% year-on-year growth rate that outpaces Japan (4.8%), the US (4.4%) and all 15 largest economies covered in the study. Software and databases account for 45% of India’s intangible investment, the highest share globally. For foreign companies, investors and economic development agencies, these findings confirm a structural shift in India’s economy from a low-cost production base to an innovation-driven knowledge economy. T&A Consulting helps organisations understand and position for India’s transition to an innovation-led growth model.

Introduction: The Structural Shift

For decades, India’s economic narrative was centred on tangible investment — factories, roads, ports, railways and physical infrastructure. This investment continues at scale: India’s gross capital formation stood at 33% of GDP in 2023, and the government’s capital expenditure in Budget 2026 grew by 7.7%. But alongside this physical build-out, a parallel transformation is underway. India is investing in intangible assets — software, data, research, brands, design and organisational know-how — at a rate that outpaces every other major economy.

The WIPO report provides the data to substantiate what qualitative observers have noted for several years: India is no longer just an outsourcing hub for low-cost labour. It is building proprietary technology, original intellectual property and knowledge-driven capabilities that generate higher-value output and more productive employment. This transition has profound implications for how foreign companies, investors and governments should think about India as a business destination.

What the WIPO Data Shows

• Fastest growth among major economies. India recorded 7.9% year-on-year growth in intangible investment between 2022 and 2023, the highest among the world’s 15 largest economies. Japan was second at 4.8%, followed by the Philippines (4.6%) and the US (4.4%).
• $78.2 billion in absolute terms. India’s intangible investment exceeds that of several European economies including Denmark, Czech Republic and Finland, despite India’s significantly lower GDP per capita.
• Software dominance. Software and databases account for 45% of India’s total intangible investment — the highest share globally. This reflects the IT services industry’s continued evolution from labour arbitrage toward product engineering, SaaS development and AI capabilities.
• Broad-based growth. Organisational capital comprised 21.8%, R&D 12.7%, design 11% and brands 9.3% of India’s intangible investment. Software and databases expanded at a CAGR of 8.2% between 2013 and 2023. Brand investment grew at 7.2% CAGR over the same period.
• Intangible investment at 10% of GDP. India’s formal-sector intangible investment reached 10% of GDP in 2023, on a steady upward trajectory. While tangible investment (19.3% of GDP) remains higher as infrastructure development continues, the gap is narrowing.

What Is Driving India’s Intangible Investment Growth

• IT services evolution. India’s IT industry, which generates over $250 billion in annual revenue and employs 5.5 million professionals, has shifted from body-shopping and maintenance to product engineering, cloud-native development, AI/ML and platform building. The industry’s investment in proprietary software and technology platforms drives the software/databases category.
• GCC transformation. Over 2,100 GCCs in India now function as innovation centres rather than cost centres. Their investment in R&D, product design, AI capabilities and organisational know-how directly contributes to India’s intangible investment growth.
• Startup ecosystem. With 207,000+ recognised startups and 100+ unicorns, India’s startup ecosystem is producing significant volumes of software, IP and brand assets. Nearly half of startup activity now comes from Tier-2 and Tier-3 cities.
• Government policy support. The IndiaAI Mission, ISM 2.0, the Design Linked Incentive scheme and the deep-tech startup support programme all encourage intangible asset creation. The 20-year eligibility period for deep-tech startups and the Rs 100 billion venture fund signal long-term commitment.
• Digital public infrastructure. India Stack (Aadhaar, UPI, ONDC, GSTN) creates a shared digital foundation that reduces the cost of building digital products and services, lowering the barrier to intangible asset creation across the economy.

Implications for Foreign Companies and Investors

• India as an R&D destination. The WIPO data validates India’s positioning as a destination for R&D investment, not just manufacturing or services delivery. Companies seeking to build proprietary technology, AI capabilities or product engineering teams should consider India alongside traditional R&D hubs in the US, Israel and Europe.
• IP creation and protection. As India’s intangible investment grows, IP creation and protection become increasingly important. India’s IP regime, strengthened through the DPDP Act, the India-EU FTA and the India-EFTA TEPA provisions, is evolving to support knowledge-economy requirements.
• Talent strategy. India added 5.2 million new developers in a single year, making it the largest source of new developers globally. Nearly 80% of new Indian developers start using AI coding tools within their first week. This talent profile supports intangible-intensive business models.
• Valuation implications. Companies building or acquiring India operations should factor in the growing intangible asset base — software, IP, brands, organisational capabilities — when valuing India entities. Traditional approaches that focus primarily on physical assets may undervalue knowledge-intensive operations.
• ESG and sustainability. Intangible-intensive economies tend to be less carbon-intensive per unit of GDP. India’s shift toward knowledge assets may support long-term ESG positioning for companies operating in the country.

The Global Context: Why This Matters Beyond India

The WIPO report reveals a broader global trend: intangible investment has surpassed $10 trillion globally for the first time, growing 5.5% annually between 2020 and 2025 compared to 3.2% for tangible investment. Intangibles now account for 12.8% of GDP across covered economies, exceeding tangible investment’s share of 11.8%. India’s rapid growth in this category positions it to capture a growing share of global value creation as the world economy becomes increasingly knowledge-driven.

For economic development agencies, the WIPO findings provide a new dimension to India’s investment attraction narrative. India is no longer competing solely on cost, market size or trade agreement access. It is competing on innovation capability, and the data shows it is winning that competition faster than any other major economy.

How T&A Consulting Supports Innovation-Led Strategy

T&A Consulting helps foreign organisations navigate India’s innovation economy:

• R&D and GCC strategy. We advise on establishing and scaling R&D centres, GCCs and innovation labs in India, covering location selection, talent strategy and IP governance.
• IP advisory. We guide companies on India’s IP protection framework, including patent, trademark and design registration, trade secret management and enforcement.
• Investment attraction. We help IPAs and EDAs incorporate India’s innovation economy positioning into their investment promotion strategies.
• Partnership facilitation. We connect foreign companies with Indian startups, research institutions and technology providers for innovation partnerships.
• Market intelligence. We provide data-driven analysis of India’s innovation ecosystem, covering sector-specific R&D activity, talent availability, IP landscape and competitive positioning.

Contact us at: pnijhawan@taglobalgroup.com to explore innovation economy opportunities in India.

Sources & references:
WIPO, Business Standard, ANI News, IBEF, NextIAS

On 18 June 2026, the World Bank approved $1.5 billion in financing to support India’s structural reforms for private sector-led job creation and economic growth. The programme, formally titled “Boosting Job Creation in the Private Sector Development Policy Financing,” targets reforms that can create employment for the 11 million youth entering India’s labour market annually over the next two decades. The operation supports three critical areas: enhancing the business-enabling environment, advancing trade and investment openness, and mobilising private capital for firm expansion. For foreign companies, investors and economic development agencies, this programme validates India’s reform trajectory and creates tangible opportunities for private sector engagement. T&A Consulting helps businesses and organisations understand India’s evolving reform landscape and position for the opportunities it creates.

Introduction: What the World Bank Is Backing

The $1.5 billion Development Policy Financing (DPF) operation is not a project loan for a specific infrastructure asset. It is policy-based financing that supports and validates the Indian government’s broader reform programme. The World Bank’s decision to commit this scale of financing is effectively an institutional endorsement of India’s reform trajectory across tax simplification, trade integration, labour law modernisation, regulatory reform and MSME finance.

The financing is aligned with the Country Partnership Framework for India for FY26-31, which is itself linked to the Government of India’s “Viksit Bharat @2047” vision of becoming a developed, inclusive and resilient economy by the centenary of independence. Johannes Zutt, World Bank Vice President for South Asia, stated that India is “well paced in its reforms agenda to unlock private capital and create jobs in a challenging global context.”

Three Pillars of Reform

Pillar 1: Enhancing the business-enabling environment. The DPF supports tax and regulatory reforms that reduce barriers to entrepreneurship. This includes the new Income-tax Act, 2025 (effective April 2026), the Corporate Laws Amendment Bill, 2026, the four Labour Codes and the simplification of GST compliance. The programme recognises that India’s employment has grown from 452 million in 2017-18 to 604 million in 2023-24 — a net addition of over 150 million jobs — while the unemployment rate declined from 6.0% to 3.2%.

Pillar 2: Advancing trade and investment openness. The DPF supports measures to streamline trade and investment regimes, including the SWAGAT-FI framework for foreign investors (effective June 2026), the relaxation of Press Note 3 beneficial ownership thresholds, the 100% FDI opening in insurance and the expanding network of trade agreements (EU, UK, EFTA, US, Australia). These reforms collectively reduce barriers to cross-border capital flows and market access.

Pillar 3: Mobilising private capital. The DPF supports initiatives to unlock financing for MSMEs, women-owned enterprises and underserved borrowers. This includes strengthening the TReDS (Trade Receivables Discounting System) platform for MSME payments, expanding credit guarantee schemes and improving access to formal financial services through digital infrastructure.

Why This Matters for Foreign Companies and Investors

• Reform validation. The World Bank’s $1.5 billion commitment provides institutional validation of India’s reform programme. For foreign companies evaluating India entry, this reduces perceived policy risk and signals that the reform trajectory has international endorsement.
• MSME partnership opportunities. The programme’s focus on MSME financing and growth creates opportunities for foreign companies to build supply chain partnerships with Indian MSMEs that are gaining access to capital, formalising operations and scaling capacity.
• Women’s workforce participation. The DPF specifically supports reforms to increase women’s labour market participation. For companies with ESG commitments, India’s improving gender inclusion in the formal workforce aligns with global sustainability standards.
• Regulatory predictability. The DPF’s endorsement of India’s regulatory simplification programme — including the new Income-tax Act, the Labour Codes and the Corporate Laws Amendment Bill — provides confidence that these reforms will be implemented and sustained.
• IFC complementary investments. The World Bank Group’s private sector arm (IFC) has made complementary investments including $97 million in Aditya Birla Capital, $100 million in L&T Finance, $150 million in HDB Financial Services and $242 million in Everstone Capital Partners Fund V. These investments signal IFC’s confidence in India’s financial services and private equity sectors.

The Jobs Challenge: Context and Scale

India’s demographic profile creates both an enormous opportunity and a pressing challenge. With 11 million young people entering the labour market annually, the country must create quality employment at an unprecedented scale. The DPF operation recognises that this can only be achieved through private sector-led growth, supported by a business-enabling environment that encourages entrepreneurship, investment and formal employment.

The reforms being supported are interconnected. The Labour Codes make it easier for companies to hire and manage workforces. The Corporate Laws Amendment reduces compliance friction. The trade agreements open export markets. The MSME financing initiatives provide capital for firm growth. And the digital infrastructure (UPI, ONDC, GSTN) reduces operational costs for businesses of all sizes. Taken together, they create a system designed to make it significantly easier for private companies — domestic and foreign — to start, scale and hire in India.

Implications for Economic Development Agencies

• Update India narratives. The World Bank’s $1.5 billion endorsement is a powerful proof point for IPAs promoting India as an investment destination. It validates the reform programme in language that institutional investors understand.
• Target MSME supply chain partnerships. As Indian MSMEs gain access to capital and formalise, they become more attractive partners for global supply chains. IPAs should facilitate introductions between foreign companies and Indian MSMEs in sectors aligned with trade agreement provisions.
• Leverage IFC investments. The IFC’s complementary investments in Indian financial services and private equity create pathways for foreign institutional investors seeking India exposure through established vehicles.

How T&A Consulting Supports Reform-Aligned Strategy

T&A Consulting helps foreign companies and organisations understand and leverage India’s evolving reform landscape:

• Reform impact assessment. We evaluate how India’s structural reforms — tax, labour, trade, regulatory — affect specific companies, sectors and investment strategies.
• MSME partnership facilitation. We identify and introduce Indian MSMEs to foreign companies seeking supply chain partners, distributors and manufacturing collaborators.
• Market entry strategy. We design India entry strategies that align with the reform trajectory, leveraging new regulatory frameworks and incentive structures.
• Investment advisory. We support foreign investors evaluating India opportunities, providing market intelligence, regulatory guidance and deal facilitation.
• Policy monitoring. We track reform implementation, regulatory developments and World Bank programme milestones, providing timely updates to our clients.

Contact us at: pnijhawan@taglobalgroup.com to discuss how India’s reform programme creates opportunities for your organisation.

Sources & references:
World Bank, Banking Finance, Lawyard, Daily Pioneer

On 9 July 2026, India and Australia unveiled 18 landmark outcomes at the third Annual Leaders’ Summit in Melbourne, including operationalisation of the uranium supply pact, launch of a Critical Minerals Corridor, acceleration of the Comprehensive Economic Cooperation Agreement (CECA), a Joint Declaration on Defence and Security Cooperation, and the Australia-India Partnership on Cyber, Critical Technologies and Supply Chains (AI-PACTS). Bilateral trade has already grown 55% since the 2022 ECTA. For businesses, investors and economic development agencies on both sides, this reset creates immediate opportunities across clean energy, critical minerals, defence technology, education and financial services. T&A Consulting helps companies and governments navigate the India-Australia partnership and identify commercial opportunities.

Introduction: From ECTA to CECA — A Deepening Partnership

The India-Australia relationship has transformed over the past four years. The Economic Cooperation and Trade Agreement (ECTA), signed in 2022, eliminated tariffs on more than 85% of Australian goods exported to India and delivered a 55% increase in bilateral trade. The Melbourne Summit of July 2026 represents the next step: a move from initial trade liberalisation toward a comprehensive strategic and economic partnership spanning energy security, critical minerals, defence, technology, education and investment.

Prime Minister Modi described the outcomes as “unparalleled,” while Australian PM Albanese said the partnership was “not just for the present, but for the future.” The scale of the announced outcomes — 18 deliverables across multiple sectors — signals that both governments see the bilateral relationship as structurally significant for the Indo-Pacific order and the global clean energy transition.

Key Outcomes: What Was Agreed

• Uranium supply for civilian nuclear programme. The administrative arrangement under the 2015 Nuclear Cooperation Agreement was finalised, enabling commercial supply of Australian uranium to India under IAEA safeguards. This gives India a stable, ally-sourced nuclear fuel supply for its expanding civilian nuclear programme, supporting the country’s clean energy ambitions.
• Critical Minerals Corridor. Both countries launched a dedicated corridor to strengthen resilient supply chains for critical minerals essential for clean energy technologies, electric vehicles and advanced manufacturing. Co-investment frameworks across five identified projects were established, along with long-term offtake agreements from Australian lithium operations.
• CECA acceleration. Leaders instructed officials to conclude negotiations for the Comprehensive Economic Cooperation Agreement “at the earliest,” expanding liberalisation beyond the ECTA into services, investment and value-added goods. A bilateral investment treaty was also prioritised.
• AI-PACTS. The Australia-India Partnership on Cyber, Critical Technologies and Supply Chains was operationalised, covering cybersecurity, digital infrastructure resilience, supply chain diversification and emerging technology cooperation.
• Defence and maritime security. A Joint Declaration on Defence and Security Cooperation was adopted, an Annual Defence Ministers’ Dialogue instituted, a Maritime Security Collaboration Roadmap unveiled, and an India-Australia Defence Innovation Corridor announced to foster collaboration between defence industries and startups.
• Clean energy and renewables. A Rooftop Solar Training Academy will be established in Gujarat with Australian support. Progress under the bilateral Renewable Energy Partnership was highlighted, with cooperation expanding into green hydrogen, energy storage and grid modernisation.
• Education. Australian universities are expanding their India presence, with new branch campuses in Bengaluru and Gurugram. Educational cooperation was described as a central pillar of the partnership.

Critical Minerals: The Strategic Core

The critical minerals dimension of the India-Australia partnership deserves particular attention. Australia holds approximately 50% of the world’s lithium reserves, significant deposits of cobalt, rare earths and nickel, and established mining and processing infrastructure. India is building massive demand for these materials through its electric vehicle programme, battery manufacturing under PLI schemes, renewable energy expansion and semiconductor ambitions.

The strategic context is China’s dominance: a single country controls roughly 90% of the world’s rare earth refining capacity. Both India and Australia view diversified critical mineral supply chains as essential to economic security and clean energy independence. The Critical Minerals Corridor addresses this by creating bilateral investment frameworks, offtake certainty and processing partnerships that reduce dependence on Chinese refining.

For companies in the critical minerals value chain — miners, processors, battery manufacturers, EV companies and renewable energy equipment makers — the corridor creates defined investment pathways with government support on both sides. The CECA negotiations are expected to address tariff treatment for processed mineral products (not just raw ore), which would significantly reduce costs for Indian battery and clean tech manufacturers.

Sectoral Opportunities

• Mining and minerals processing. Australian mining companies can access India’s growing demand for lithium, cobalt, rare earths and nickel through the corridor’s co-investment frameworks and offtake agreements. Indian companies can invest in upstream Australian mining operations.
• Clean energy. Solar manufacturing, green hydrogen production equipment, battery assembly and energy storage systems are priority areas. The Gujarat solar training academy signals joint skills development for a growing workforce.
• Defence and aerospace. The Defence Innovation Corridor creates opportunities for startups and established companies in both countries to collaborate on dual-use technologies, maritime systems and cybersecurity solutions.
• Education. Australian universities are actively establishing India campuses. The CECA is expected to include services provisions that facilitate academic partnerships, student mobility and professional exchange.
• Financial services. The bilateral investment treaty and CECA services provisions will facilitate cross-border financial flows, investment management and insurance services between the two markets.
• AgriTech and food processing. India’s food services market is projected to reach $150 billion by FY31, while Australia is a major agricultural producer. The CECA is expected to expand market access for both countries’ agricultural products and food processing technologies.

Context: India-Australia Within the Trade Agreement Architecture

The India-Australia CECA, when concluded, will join an expanding network of trade agreements that positions India as a multi-market access hub. A company operating from India can already access preferential terms in the EU (India-EU FTA), the UK (India-UK CETA), EFTA nations (India-EFTA TEPA), ASEAN (India-ASEAN FTA), Japan (India-Japan CEPA), South Korea, the UAE and the United States (interim framework). Adding a comprehensive Australia agreement strengthens India’s position as a manufacturing and services base with preferential access to markets covering more than half of global GDP.

For Australian companies, the CECA creates a pathway to use India as a regional hub. An Australian company manufacturing in India can export to the EU, UK, ASEAN and other partner markets under India’s FTA network — a multi-market strategy that India-only or Australia-only positioning cannot deliver.

How T&A Consulting Supports India-Australia Business

T&A Consulting provides advisory for companies and agencies operating within the India-Australia partnership:

• Critical minerals strategy. We help Australian mining companies and Indian manufacturers identify partnership opportunities, navigate regulatory frameworks and structure co-investment arrangements under the Critical Minerals Corridor.
• Market entry strategy. We design India entry strategies for Australian companies and Australia entry strategies for Indian companies, incorporating ECTA/CECA provisions and sector-specific regulations.
• Education and campus advisory. We support Australian universities establishing campuses in India, covering regulatory processes, site selection, student recruitment and partnership development.
• Trade agreement advisory. We help companies leverage the full India-Australia trade framework (ECTA, CECA, bilateral investment treaty) alongside other Indian FTAs for multi-market access strategies.
• Investment attraction. We support economic development agencies on both sides in designing bilateral investment promotion campaigns.

Contact us at: pnijhawan@taglobalgroup.com to explore India-Australia business opportunities.

Sources & references:
Business Standard, The Tribune, Discovery Alert, DD India, The Federal

India’s Digital Personal Data Protection Act, 2023 (DPDP Act) establishes the country’s first comprehensive data protection framework, governing how businesses collect, process, store and transfer personal data of Indian residents. For foreign companies operating in India — whether through subsidiaries, GCCs, branch offices, e-commerce platforms or SaaS applications — the DPDP Act creates new compliance obligations covering consent management, data localisation, cross-border transfer, breach notification and children’s data protection. With implementation rules being progressively notified and the Data Protection Board becoming operational, companies must prepare now. T&A Consulting helps foreign businesses understand and comply with India’s evolving data protection landscape.

Introduction: India’s Data Protection Framework Takes Shape

India’s journey toward comprehensive data protection legislation spanned nearly a decade. The Supreme Court’s landmark Puttaswamy judgment of 2017 established the right to privacy as a fundamental right. The Justice B.N. Srikrishna Committee produced a draft bill in 2018. Several iterations followed before the Digital Personal Data Protection Act was enacted in August 2023. The Act applies to the processing of digital personal data within India and to the processing of personal data outside India if it involves offering goods or services to individuals in India.

The DPDP Act is deliberately principle-based rather than prescriptive, with detailed implementation rules being notified progressively by the Central Government. The Data Protection Board of India (DPB), the enforcement authority, has been established and is becoming operational. While the Act is not yet fully enforced pending completion of rule notification, companies are expected to be compliance-ready, as enforcement can begin relatively quickly once rules are finalised.

Key Concepts and Obligations

• Data fiduciary and data principal. The DPDP Act uses the terms “data fiduciary” (the entity that determines the purpose and means of processing personal data, equivalent to GDPR’s “controller”) and “data principal” (the individual whose data is being processed, equivalent to “data subject”). Any foreign company processing personal data of individuals in India is a data fiduciary under the Act.
• Consent. Personal data can be processed only with the free, specific, informed and unambiguous consent of the data principal, given through a clear affirmative action. Consent must be sought for a specified purpose and can be withdrawn at any time. The consent mechanism must be in clear, plain language and provide the data principal with the option to withdraw consent as easily as it was given.
• Legitimate uses. The Act provides certain exemptions where processing is permitted without consent, including for the performance of a contract, compliance with a legal obligation, responding to a medical emergency, employment-related processing and processing by the State for government functions.
• Data principal rights. Individuals have the right to access their data, request correction and erasure, nominate a representative, and seek grievance redressal. Data fiduciaries must establish accessible grievance redressal mechanisms.
• Cross-border data transfer. The Act permits cross-border transfer of personal data by default, except to countries specifically restricted by the Central Government through notification. This is a significant departure from earlier drafts that had proposed strict data localisation. However, the government retains the power to restrict transfers to specific jurisdictions, and sectoral regulators (RBI, SEBI, IRDAI) maintain their own data localisation requirements.
• Significant data fiduciaries. The Central Government may designate certain data fiduciaries as “significant” based on the volume and sensitivity of data they process. Significant data fiduciaries face additional obligations including appointing a Data Protection Officer based in India, conducting Data Protection Impact Assessments and periodic audits.
• Children’s data. Processing personal data of children (under 18) requires verifiable parental consent. Targeted advertising and behavioural monitoring of children is prohibited. Companies offering digital services used by children must implement age verification mechanisms.
• Breach notification. Data fiduciaries must notify the Data Protection Board and affected data principals of any personal data breach. The notification must be made “without unreasonable delay” though specific timeframes are expected in the implementation rules.

Penalties and Enforcement

The DPDP Act provides for significant financial penalties. The maximum penalty for a single violation is Rs 250 crore (approximately $30 million). Specific penalty ranges include up to Rs 200 crore for failure to take reasonable security safeguards to prevent data breaches, up to Rs 200 crore for failure to notify the Board and data principals of a breach, up to Rs 150 crore for breaches related to children’s data, and up to Rs 10,000 for individuals providing false information or making frivolous complaints.

The Data Protection Board of India is the adjudicatory body. Unlike the EU’s supervisory authorities, the DPB functions primarily as a tribunal that hears complaints and determines penalties, rather than as a proactive regulator conducting audits and issuing guidance. However, the Board has the power to direct data fiduciaries to take remedial measures and can impose significant financial consequences for non-compliance.

Comparison with GDPR: Key Differences

Foreign companies familiar with GDPR should note several important differences:

• Cross-border transfers. The DPDP Act takes a “blacklist” approach (transfers permitted unless the destination is specifically restricted), unlike GDPR’s “whitelist” approach (transfers restricted unless the destination has an adequacy decision or appropriate safeguards are in place). This makes cross-border data flows from India potentially easier than from the EU, though the government’s power to restrict transfers introduces uncertainty.
• No DPO mandate for all. Only “significant data fiduciaries” must appoint a Data Protection Officer. Standard data fiduciaries have no DPO requirement, though they must establish grievance redressal mechanisms.
• No right to data portability. Unlike GDPR, the DPDP Act does not include a right to data portability, though data principals can access and correct their data.
• Government exemptions. The Act provides broad exemptions for government data processing, including national security, law enforcement and public order, which are wider than GDPR’s equivalent provisions.
• Consent-centric. The Act relies more heavily on consent as the primary legal basis for processing, with fewer alternative legal grounds compared to GDPR’s six lawful bases.

Practical Implications for Foreign Companies

• Companies with India customers. Any foreign company offering goods or services to individuals in India must comply with the DPDP Act, regardless of whether it has a physical presence in India. This includes e-commerce platforms, SaaS providers, digital content services and any business that collects personal data from Indian users.
• Companies with India operations. Foreign companies with subsidiaries, GCCs or branch offices must comply with employee data processing requirements, including consent management, access rights and breach notification. The interaction with the Labour Codes (which require digital payroll and compliance systems) creates additional data processing obligations.
• Sectoral overlaps. Companies in financial services, insurance, healthcare and telecommunications must comply with both the DPDP Act and sector-specific data requirements from RBI, SEBI, IRDAI and TRAI. RBI’s data localisation requirement for payment data, for example, operates independently of the DPDP Act’s cross-border transfer provisions.
• Data processors and vendors. Foreign companies that process data on behalf of Indian data fiduciaries (cloud service providers, BPO operators, analytics companies) must comply through their contractual obligations with the data fiduciary, including security measures, breach notification and data deletion requirements.

How T&A Consulting Supports Data Protection Compliance

T&A Consulting provides comprehensive advisory for foreign companies navigating India’s data protection landscape:

• DPDP Act readiness assessment. We evaluate your current data processing practices against the DPDP Act’s requirements, identify gaps and design a compliance roadmap.
• Consent management framework. We design consent collection, management and withdrawal mechanisms that comply with the Act’s requirements while maintaining user experience.
• Cross-border transfer assessment. We evaluate your data transfer arrangements, identify applicable sectoral localisation requirements and design compliant data flow architectures.
• Breach response planning. We develop breach detection, assessment, notification and remediation protocols aligned with the DPDP Act and sectoral requirements.
• Ongoing compliance support. We monitor regulatory developments, rule notifications and DPB enforcement actions, providing timely updates and compliance adjustments.

Contact us at: pnijhawan@taglobalgroup.com to discuss DPDP Act compliance for your India operations.

Sources & references:
MeitY (Ministry of Electronics and IT), India Briefing, Mondaq, Deloitte, Bar & Bench

India’s semiconductor ambitions are backed by a dedicated $10 billion incentive programme, a revised India Semiconductor Mission (ISM 2.0) and an Electronic Component Scheme outlay of Rs 40,000 crore. Micron Technology has begun construction of a $2.75 billion assembly and testing facility in Gujarat. Tata Electronics is investing in fabrication capacity. Over 50 GCCs already have dedicated semiconductor design units in India. The government’s roadmap estimates that India will need cumulative semiconductor investments of $135-180 billion over the next decade. For semiconductor companies, electronic component manufacturers and investors, India’s chip ambitions represent a generational market entry opportunity. T&A Consulting helps foreign semiconductor and electronics companies navigate India’s incentive frameworks, site selection and market entry strategy.

Introduction: From Chip Consumer to Chip Producer

India is the world’s second-largest consumer of semiconductors but produces virtually none domestically. The country imports approximately $40 billion worth of semiconductor products annually, creating a significant trade deficit in electronic components and a strategic dependency on supply chains concentrated in Taiwan, South Korea and China. The global chip shortage of 2020-2022 exposed the vulnerability of this dependency and accelerated India’s determination to build domestic semiconductor capacity.

The India Semiconductor Mission (ISM), launched in 2021 with an initial $10 billion allocation, has been upgraded to ISM 2.0 in Budget 2026 with a sharpened focus on high-value segments of the chip value chain: equipment, materials, full-stack Indian IP and advanced packaging. The government’s approach is pragmatic — rather than attempting to compete with TSMC in cutting-edge node fabrication immediately, India is building capability in assembly, testing and packaging (ATMP), fabless chip design and compound semiconductors, while attracting established global players for manufacturing partnerships.

The Investment Landscape

• Micron Technology. The US-based memory chip giant is constructing a $2.75 billion assembly and testing facility in Sanand, Gujarat. The facility will perform ATMP operations for DRAM and NAND flash memory, creating approximately 5,000 direct and 15,000 indirect jobs. Micron received approximately 50% of the project cost as government incentives under the ISM.
• Tata Electronics. The Tata Group is investing in semiconductor fabrication through a partnership with Powerchip Semiconductor Manufacturing Corporation (PSMC) of Taiwan. The facility, planned in Dholera (Gujarat), is expected to produce chips at 28nm and above. Tata Electronics is also building an ATMP facility in Assam.
• CG Power (Murugappa Group). Investing approximately $1.3 billion in an OSAT (Outsourced Semiconductor Assembly and Test) facility in Sanand, Gujarat, with technology partnership from Japan’s Renesas Electronics.
• Kaynes Technology. Building a $3 billion compound semiconductor facility in Sanand, Gujarat, focusing on silicon carbide (SiC) and gallium nitride (GaN) semiconductors for electric vehicles, renewable energy and telecommunications.
• GCC semiconductor design. Over 50 GCCs in India now have dedicated semiconductor design units, including operations by Intel, Qualcomm, AMD, Texas Instruments, Broadcom, Samsung Semiconductor and NXP. India already has approximately 20% of the world’s chip design workforce, making it the second-largest semiconductor design hub globally after the United States.

ISM 2.0 and Policy Framework

• Modified Scheme for setting up Semiconductor Fabs. Provides fiscal support of up to 50% of project cost for semiconductor fabrication facilities, subject to defined technology and investment thresholds.
• Modified Scheme for setting up Compound Semiconductors. Provides fiscal support of up to 50% of capital expenditure for compound semiconductor (SiC, GaN), silicon photonics and sensor fabrication facilities.
• Scheme for Semiconductor ATMP. Provides fiscal support of up to 50% of project cost for assembly, testing, marking and packaging facilities.
• Design Linked Incentive (DLI) scheme. Provides incentives of up to 50% of eligible expenditure for semiconductor design companies, covering chip design, validation and go-to-market costs for Indian-designed chips.
• Electronic Component Scheme. Budget 2026 increased the outlay to Rs 40,000 crore for the production of passive electronic components, printed circuit boards, sub-assemblies and other components, creating a domestic supply base for the semiconductor ecosystem.
• Talent development. The Chips to Startup (C2S) programme supports academic institutions in developing semiconductor design curricula. India’s target is to train 85,000 semiconductor professionals over the next five years to support the growing ecosystem.

India’s Strategic Position in the Global Chip Supply Chain

India’s semiconductor strategy is shaped by the global realignment of chip supply chains. The US CHIPS Act, the EU Chips Act and Japan’s semiconductor investment programme all seek to reduce concentration risk by building capacity outside Taiwan and South Korea. India’s proposition is complementary: it offers a large and growing domestic consumption market, a massive chip design talent pool, competitive construction and operating costs and fiscal incentives that rival or exceed those offered by competing locations.

India’s positioning is particularly strong in three areas. First, semiconductor design, where the country already has deep capability through GCCs and a growing domestic design startup ecosystem. Second, ATMP, where Micron’s entry validates India’s ability to attract Tier-1 global players. Third, compound semiconductors, where India’s electric vehicle and renewable energy growth creates natural domestic demand for SiC and GaN devices.

The intersection of India’s semiconductor ambitions with its trade agreement architecture (India-EU FTA, India-UK CETA, India-EFTA TEPA, US-India framework) creates additional value: semiconductors and electronic components produced in India can potentially access preferential tariff treatment in multiple major markets, making India an attractive export manufacturing base for the chip value chain.

Opportunities for Foreign Companies

• Semiconductor equipment and materials. India’s fab and ATMP buildout creates demand for lithography, deposition, etching, metrology, packaging and testing equipment. Equipment suppliers can establish India operations to support the growing installed base.
• IP and EDA tools. Electronic design automation (EDA) companies and IP licensors have a natural market given India’s large and growing chip design workforce.
• Technology partnerships. Indian companies seeking fabrication technology partnerships (like Tata-PSMC) create opportunities for foundries, process technology licensors and yield engineering firms.
• Component manufacturing. The Rs 40,000 crore Electronic Component Scheme creates incentives for foreign manufacturers of passive components, PCBs, connectors and sub-assemblies to establish India operations.
• Talent and training. Companies specialising in semiconductor training, curriculum development and workforce readiness have a growing market as India scales from 20,000 to 85,000+ semiconductor professionals.

How T&A Consulting Supports Semiconductor Market Entry

T&A Consulting provides advisory for foreign semiconductor and electronics companies entering India:

• Incentive navigation. We map and apply for available incentives under ISM 2.0, DLI, Electronic Component Scheme and state-level semiconductor policies.
• Site selection. We evaluate locations based on infrastructure, talent availability, supply chain proximity and state incentive packages.
• Partnership identification. We facilitate partnerships between foreign technology providers and Indian semiconductor companies, GCCs and research institutions.
• Entity setup and regulatory compliance. We manage incorporation, FDI compliance, environmental clearances and ongoing operations.
• Market assessment. We provide market intelligence on India’s semiconductor consumption, design ecosystem and supply chain development trajectory.

Contact us at: pnijhawan@taglobalgroup.com to explore semiconductor opportunities in India.

Sources & references:
PIB, India Briefing, Business Standard, IBEF, Flexiple

India’s medical tourism market is projected to reach $13 billion by 2026, up from $6 billion in 2022. Foreign tourist arrivals for treatment jumped from 182,945 in 2020 to 644,387 in 2024, with patients paying 60-80% less than OECD rates for procedures including cardiac surgery, orthopaedics, oncology and transplants. Budget 2026-27 has proposed five regional medical hubs integrating healthcare, education, research and AYUSH wellness facilities. For national tourism boards, healthcare companies, insurance groups and economic development agencies, India’s medical tourism growth presents significant partnership and investment opportunities. T&A Consulting helps foreign organisations navigate India’s medical value travel ecosystem and identify strategic entry points.

Introduction: From Cost-Driven Care to Global Healthcare Ecosystem

India’s medical tourism story has evolved significantly from its origins as a low-cost alternative for patients from neighbouring countries. Today, the country’s medical value travel (MVT) sector is a sophisticated ecosystem encompassing world-class hospital chains (Apollo, Fortis, Max, Medanta, Aster DM), JCI- and NABH-accredited facilities, specialised centres of excellence in oncology, cardiac surgery, transplant medicine and robotic surgery, and a growing integration of traditional AYUSH therapies with modern medical care.

The e-Medical Visa programme now covers 167 countries, with processing times significantly reduced. The “Heal in India” initiative, launched by the Ministry of Tourism, provides a dedicated portal for international patients to discover accredited facilities, compare treatments and plan their healthcare journey. The market is projected to grow at a 12.3% CAGR from 2026 to 2036, potentially reaching $65 billion, driven by rising inflows from Africa, the Middle East and Southeast Asia, expanding private hospital capacity and increasing preference for bundled care pathways.

Why Patients Choose India

• Cost advantage. Bypass grafts starting at $5,000 compared to $100,000 in the United States. Knee replacements at $6,000-8,000 versus $35,000-50,000. IVF treatments at $2,500-4,000 versus $12,000-15,000. Lower labour costs, high generic drug penetration and dense patient throughput sustain the pricing edge without compromising quality.
• Clinical capability. India has over 40 JCI-accredited hospitals and thousands of NABH-accredited facilities. Hospitals routinely perform complex procedures including proton therapy, CAR-T cell therapy, da Vinci robotic surgery, liver and kidney transplants and advanced cardiac interventions. Many lead clinicians have trained at top US and UK institutions.
• No waiting times. Unlike the NHS (UK) or public healthcare systems in Canada and Australia where patients wait months or years for elective procedures, Indian hospitals offer near-immediate scheduling. This is a decisive factor for patients with time-sensitive conditions.
• Wellness integration. India’s unique position as the birthplace of Ayurveda, yoga and naturopathy allows hospitals to offer integrated wellness and recovery programmes that combine modern medicine with traditional therapies. This is a growing differentiator, particularly for wellness tourism and post-treatment recovery.
• Language and communication. India’s English-speaking medical workforce and multilingual patient facilitation services (Arabic, Russian, French, Swahili) reduce communication barriers that patients face in other medical tourism destinations.

Source Markets and Patient Profiles

India’s medical tourist profile has diversified significantly:

• South Asia (Bangladesh, Nepal, Sri Lanka, Maldives). The largest source region by volume, driven by proximity, limited domestic specialist capacity and existing cultural and travel connections. Aster DM Healthcare reported 51% MVT revenue growth in Kerala driven by Maldivian and South Asian patients.
• Middle East and North Africa. Historically a major source market, particularly for cardiac, orthopaedic and oncology treatment. The West Asia conflict has caused temporary disruptions in 2025-26, but hospital chains have diversified into alternative regions.
• Africa. The fastest-growing source region, with patients from Nigeria, Kenya, Ethiopia, Tanzania and East Africa seeking treatments unavailable domestically. India’s cultural connections, direct flight routes and affordable pricing make it the preferred destination.
• Central Asia and CIS. Uzbekistan, Kazakhstan and other Central Asian countries are emerging sources, with patients seeking cardiac surgery, orthopaedics and fertility treatments.
• OECD countries. A smaller but growing segment, driven primarily by diaspora patients returning for elective procedures, dental care and wellness treatments, and by patients from countries with long NHS-style waiting times.

Government Policy and Infrastructure

• Five regional medical hubs. Budget 2026-27 proposed five medical hubs integrating medical services, education, research and wellness. Each hub will include dedicated AYUSH centres and MVT facilitation centres for international patients.
• e-Medical Visa. The simplified e-Medical Visa covers 167 countries, with multiple-entry provisions and companion visas for accompanying family members.
• Heal in India portal. The dedicated government portal provides international patients with information on accredited hospitals, treatment options, cost comparisons and travel logistics.
• International insurance tie-ups. Overseas insurance agreements with Maldives, Oman and Mauritius reduce out-of-pocket costs for patients, de-risking the financial decision.
• AYUSH promotion. The Ministry of AYUSH is actively promoting India as a wellness tourism destination, with dedicated yoga and Ayurveda tourism circuits.

Opportunities for Foreign Organisations

• Insurance companies. Foreign health insurers can develop India-inclusive treatment networks, offering policyholders access to high-quality, lower-cost procedures. Cross-border insurance products covering medical travel to India are an emerging category.
• National tourism boards. Countries with large outbound medical travel flows (particularly in the Middle East and Africa) can partner with Indian hospital chains to create structured referral pathways and patient facilitation programmes.
• Healthcare companies. Medical device manufacturers, pharmaceutical companies and health technology firms can leverage India’s medical tourism ecosystem as a distribution and demonstration channel for their products.
• Hospital management companies. Foreign hospital operators can explore JV or management contract arrangements with Indian hospital chains to build capacity in underserved specialties or geographies.
• Digital health platforms. AI-powered patient triage, teleconsultation, treatment matching and post-treatment monitoring platforms have significant opportunity in the Indian MVT market.

How T&A Consulting Supports Medical Tourism Strategy

T&A Consulting helps foreign organisations navigate India’s medical value travel ecosystem:

• Market research and demand analysis. We analyse source market demand, patient profiles, treatment preferences and competitive positioning for hospitals and healthcare organisations.
• Partnership facilitation. We identify and introduce foreign insurers, tourism boards and healthcare companies to Indian hospital chains, wellness centres and facilitation platforms.
• Policy advisory. We advise governments on medical visa policies, accreditation frameworks and medical tourism promotion strategies, drawing on India’s experience as a leading MVT destination.
• Investment advisory. We support foreign healthcare investors evaluating hospital assets, medical technology companies and digital health platforms in India.
• Marketing strategy. We design medical tourism marketing campaigns targeting specific source markets, incorporating digital outreach, trade engagement and medical conference participation.

Contact us at: pnijhawan@taglobalgroup.com to explore medical tourism opportunities in India.

Sources & references:
Mordor Intelligence, Future Market Insights, Outlook India, Travel and Tour World, ORF

The Corporate Laws (Amendment) Bill, 2026, introduced in the Lok Sabha on 23 March 2026 and referred to a Joint Parliamentary Committee, proposes targeted reforms to the Companies Act, 2013 and the LLP Act, 2008. The Bill focuses on reducing procedural friction, decriminalising minor offences, enabling faster corporate actions, modernising processes and strengthening accountability. For foreign companies operating entities in India, these changes signal a continued shift from form-heavy compliance to outcome-based, risk-aligned regulation. T&A Consulting helps foreign businesses understand and adapt to India’s evolving corporate governance framework.

Introduction: India’s Ease of Doing Business Trajectory

India’s corporate law framework has been undergoing calibrated transformation over the past decade. The Companies Act, 2013, replaced the 1956 Act and introduced modern governance standards, but also brought significant compliance burdens — particularly for smaller companies and foreign subsidiaries with limited India operations. Since then, successive amendments have sought to reduce these burdens while preserving governance integrity.

The 2026 Bill continues this trajectory. Rather than a wholesale rewrite, it targets specific pain points identified through DPIIT’s stakeholder consultations and India’s own ease of doing business reviews. The reforms are designed to align India’s corporate ecosystem with evolving global standards, support the IFSC at GIFT City, and create a more predictable regulatory environment for domestic and foreign businesses.

Key Reforms in the Bill

• Decriminalisation of minor offences. The Bill continues the process of converting minor procedural defaults from criminal offences (which carry potential imprisonment) to civil penalties (which carry fines). This reduces the personal legal risk for directors and officers of Indian companies — a long-standing concern for foreign-appointed directors serving on boards of Indian subsidiaries. Previous amendments had already decriminalised over 60 offences; this Bill extends the approach further.
• Faster corporate actions. The Bill proposes streamlined procedures for common corporate actions including changes to the memorandum and articles of association, board composition changes, share transfers and routine filings. Reduced waiting periods and simplified documentation requirements will make it faster to execute structural changes.
• Digitisation of compliance. The Bill mandates digital filing and processing for additional categories of documents and approvals, reducing the paper-based processes that still characterise some interactions with the Registrar of Companies (RoC). This aligns with the broader government push toward digital governance through platforms like MCA21.
• IFSC integration. The Bill includes specific provisions that align corporate law with the IFSCA framework at GIFT City, providing regulatory clarity for companies and LLPs operating in the IFSC. This supports the government’s objective of positioning GIFT City as a globally competitive financial centre.
• Strengthened NFRA role. The National Financial Reporting Authority (NFRA), India’s audit regulator, receives expanded powers for oversight of auditing and accounting standards. This strengthens audit quality and investor confidence, particularly relevant for listed companies and large private entities with foreign ownership.
• LLP reforms. The LLP Act amendments simplify formation, compliance and governance requirements for Limited Liability Partnerships, making the LLP structure more attractive for smaller foreign operations, professional services firms and joint ventures.
• Regulatory rationalisation. The Bill recalibrates enforcement across multiple compliance areas, shifting from blanket requirements that apply regardless of company size to risk-aligned obligations where the compliance burden is proportionate to the company’s scale, complexity and public interest impact.

Impact on Foreign Companies in India

For foreign companies operating Indian subsidiaries, branch offices or LLPs, the Bill addresses several practical concerns. The decriminalisation of minor defaults reduces the personal liability risk for nominee directors — typically senior executives from the parent company who serve on the Indian board. The streamlined procedures for routine corporate actions reduce the administrative burden on the Indian entity’s management and compliance team. And the digital filing mandates reduce the reliance on physical document submissions that have historically created delays.

The IFSC-specific provisions are particularly relevant for foreign institutions operating in GIFT City, including banks, insurance companies, fund managers and universities. By aligning corporate law with IFSCA regulations, the Bill eliminates ambiguities that could arise from the interaction of two regulatory frameworks.

The LLP reforms may attract foreign professional services firms, technology companies and consultancies that prefer the LLP structure for its operational flexibility, pass-through taxation and limited liability protection. Under India’s FDI policy, 100% foreign investment is permitted in LLPs through the automatic route in sectors where 100% FDI is allowed under the automatic route and there are no FDI-linked performance conditions.

Context: India’s Broader Regulatory Modernisation

The Corporate Laws Amendment Bill does not exist in isolation. It is part of a broader regulatory modernisation wave in 2025-2026 that includes:

• New Income-tax Act, 2025. Effective from 1 April 2026, replacing the 1961 Act with simplified provisions and updated compliance frameworks.
• FEMA export/import regulations, 2026. New foreign exchange management regulations for trade, effective from 1 October 2026.
• SEBI regulatory overhaul. New mutual fund regulations, stock broker regulations and the SWAGAT-FI framework all effective in 2026.
• Labour Codes. The four consolidated Labour Codes replacing 29 older laws.
• Digital Personal Data Protection Act, 2023. Implementation and rule-making progressing through 2026.

Collectively, these reforms represent the most comprehensive overhaul of India’s business regulatory framework in decades. Foreign companies must manage the transition across multiple regulatory domains simultaneously, requiring coordinated legal, tax, compliance and HR planning.

How T&A Consulting Supports Corporate Compliance

T&A Consulting provides comprehensive advisory for foreign companies navigating India’s corporate governance framework:

• Entity structuring and restructuring. We advise on optimal entity structures (subsidiary, LLP, branch office, project office) considering the evolving regulatory framework, tax implications and operational objectives.
• Board and governance advisory. We help foreign parent companies manage Indian board composition, director compliance obligations and governance requirements under the amended Companies Act.
• Compliance calendar management. We provide ongoing support for statutory filings, annual returns, board meeting requirements and RoC submissions.
• Regulatory change monitoring. We track legislative developments, regulatory amendments and implementation timelines across corporate law, tax, FEMA, labour and data protection, providing timely updates and action recommendations.
• IFSC advisory. We advise on GIFT City establishment, IFSCA compliance and the interaction between corporate law and IFSC regulations.

Contact us at: pnijhawan@taglobalgroup.com to discuss how the Corporate Laws Amendment affects your India operations.

Sources & references:
EY India, Mondaq, Chambers and Partners, PIB

India has replaced 29 central labour laws with four consolidated Labour Codes, effective from 21 November 2025. The new framework restructures wage definitions, expands social security to gig and platform workers, raises the retrenchment threshold from 100 to 300 workers and mandates pro-rata gratuity for fixed-term employees from day one. As of May 2026, over 30 states and union territories have notified rules for at least one code, with gig worker contribution rules expected by mid-2026. For foreign companies operating in India — whether through a subsidiary, GCC, branch office or EoR arrangement — these changes have direct implications for payroll, CTC structures, workforce flexibility and compliance costs. T&A Consulting helps foreign employers understand and implement the new labour framework across multiple Indian states.

Introduction: From 29 Laws to Four Codes

India’s labour law landscape has historically been one of the most complex in the world, with 29 central laws and hundreds of state-specific regulations governing everything from minimum wages and factory safety to trade union recognition and social security contributions. The fragmentation created compliance challenges, particularly for companies operating across multiple states, and discouraged formal employment in favour of contract and informal arrangements.

The four Labour Codes — the Code on Wages (2019), the Industrial Relations Code (2020), the Code on Social Security (2020) and the Occupational Safety, Health and Working Conditions Code (2020) — were passed by Parliament between 2019 and 2020 but their implementation was repeatedly delayed due to the pandemic, state-level rule notification requirements and political considerations. The codes were finally brought into force on 21 November 2025, repealing all 29 predecessor laws. Central rules are being finalised, with state-level rules progressing at varying speeds across the country.

The Four Codes: What Has Changed

1. Code on Wages, 2019. The most immediately impactful change for employers. The code introduces a universal definition of “wages” that requires basic pay to constitute at least 50% of total CTC (cost to company). Allowances exceeding 50% of total remuneration will be treated as wages for the purpose of calculating PF, ESI, gratuity and bonus. This means companies that currently structure CTC with a low basic pay and high allowances (a common practice in India to reduce statutory contribution obligations) will need to restructure compensation. The result is higher employer contributions to PF and ESI, increased gratuity liabilities and higher take-home pay for employees after the adjustment.

2. Industrial Relations Code, 2020. The most significant change for manufacturing and large-scale operations. The code raises the threshold for government approval before retrenchment or closure from 100 workers to 300 workers. This gives medium-sized manufacturers (100 to 299 workers) significantly greater workforce flexibility without requiring government consent for restructuring. The code also introduces fixed-term employment as a formal category, requires 75% union membership to call a legal strike and strengthens conciliation mechanisms for dispute resolution.

3. Code on Social Security, 2020. The landmark expansion. For the first time, gig and platform workers — app-based delivery personnel, cab drivers and other digitally intermediated workers — are formally recognised as a category eligible for social security benefits, including provident fund and insurance. The code also mandates pro-rata gratuity for fixed-term employees from the first day of engagement, eliminating the previous five-year minimum service requirement. The Central Government is expected to notify specific contribution rates and eligibility thresholds for gig workers by mid-2026.

4. Occupational Safety, Health and Working Conditions Code, 2020. Consolidates 13 older safety laws including the Factories Act. The code mandates periodic safety audits, training requirements and health assessments. It introduces a single registration system for establishments, replacing the multiple registrations previously required under different acts. Working hour limits are standardised, with provisions for overtime and compensatory rest.

Practical Impact on Foreign Employers

• CTC restructuring required. Companies with CTC structures where basic pay is below 50% of total remuneration must restructure. This affects payroll, offer letters, employment contracts and statutory contribution calculations. The financial impact can be significant: for an employee with a Rs 15 lakh CTC currently structured at 30% basic, the shift to 50% basic increases employer PF contribution by approximately Rs 36,000 per employee per year.
• Multi-state compliance remains complex. Labour is a concurrent subject under India’s Constitution. While the central codes provide the framework, each state must draft and notify its own implementing rules covering inspection procedures, form formats, sector-specific registers and welfare fund contributions. As of May 2026, the pace and content of state rule notifications varies widely, creating a patchwork compliance environment.
• Gig worker obligations emerging. Foreign companies using gig or platform workers in India — including for last-mile delivery, customer support, content moderation or field services — must prepare for social security contribution obligations once the Central Government notifies gig worker-specific rules. Companies should begin internal assessments of their gig worker population now.
• Fixed-term employment becomes more attractive. The formal recognition of fixed-term employment with pro-rata benefits makes it a viable and compliant alternative to contract staffing through third-party agencies. Companies can now hire fixed-term employees directly with full benefits, reducing the compliance risks associated with contract labour arrangements.
• 48-hour full and final settlement. The codes introduce a 48-hour window for processing full-and-final settlements upon employee exit, replacing the previously undefined or multi-week timelines. This requires technology-backed payroll systems capable of rapid calculation and disbursement.

Implementation Status: A State-by-State Landscape

The implementation of the Labour Codes is uneven across India’s states. Some states, including Uttar Pradesh, Madhya Pradesh, Gujarat and Karnataka, have been more proactive in notifying state-level rules. Others are moving more slowly, creating a period of regulatory ambiguity during the transition.

For foreign companies operating across multiple Indian states, this means that compliance requirements can differ by geography. Professional tax rates, Shops and Establishments Act registrations, specific welfare fund contributions and inspection procedures all vary. Companies must monitor state labour department notifications and adjust their compliance frameworks accordingly.

The Shram Suvidha 2.0 digital compliance portal is expected to be the next major milestone, providing a unified digital interface for labour law compliance including registration, return filing and inspection management. This aligns with the broader government push toward digital compliance platforms that simplify reporting and monitoring.

ESG and Global Compliance Considerations

The Labour Codes are increasingly relevant to ESG (Environmental, Social and Governance) compliance. International investors, buyers and partners scrutinise labour practices in their India supply chains and operations. The formal recognition of gig worker rights, the expansion of social security coverage and the strengthening of occupational safety requirements align with global ESG standards and reporting frameworks.

Companies that adopt the new codes proactively — rather than waiting for enforcement — can use compliance as a competitive advantage in investor relations, supply chain partnerships and talent attraction. ESG-aligned labour practices are increasingly a prerequisite for participation in global supply chains, particularly for European and UK buyers operating under due diligence legislation.

How T&A Consulting Supports Labour Law Compliance

T&A Consulting provides comprehensive advisory for foreign companies navigating India’s new labour framework:

• CTC restructuring advisory. We model the financial impact of the 50% wage rule on employer costs, employee take-home pay and statutory contribution obligations, and design compliant CTC structures.
• Multi-state compliance mapping. We track state-level rule notifications and map compliance requirements across the states where our clients operate, providing a unified compliance calendar.
• Gig worker assessment. We help companies assess their gig worker exposure, model potential social security contribution obligations and design compliant engagement structures.
• Employment contract review. We review and update employment contracts, offer letters, employee handbooks and HR policies to align with the new codes.
• Ongoing compliance support. We provide ongoing monitoring of state-level notifications, regulatory updates and enforcement trends, ensuring our clients remain compliant as the implementation landscape evolves.

Contact us at: pnijhawan@taglobalgroup.com to discuss how the new Labour Codes affect your India workforce strategy.

Sources & references:
PwC India, Bar & Bench, DCP Solutions, Omnivoo, PIB