India’s ethanol success shows how homegrown fuels can cut import dependence. The next opportunity lies in biogas, biomass and sustainable aviation fuel.Energy independence is often discussed in terms of oil fields, strategic reserves and overseas supply contracts. Yet one of India’s most practical answers may already be lying in its farms, sugar mills, cattle sheds, city waste streams and food-processing units. As global supply disruptions expose the cost of dependence on imported fuels, bioenergy is moving from the margins of policy to the centre of India’s energy-security strategy.Continue Reading with CNBC-TV18 Access MembershipPriority Access and Networking: CNBC-TV18’s flagship events Interaction with CNBC-TV18’s journalists Webinars & LIVE Q&As with India Inc. Leaders Exclusive CNBC-TV18 studio & newsroom tours Premium business insights, expert opinions & analysis Curated lifestyle privileges & offers
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India’s energy independence may be hiding in plain sight — in farms, waste and sugar mills
India’s labour market picks up in July as unemployment falls to 5.1%
India’s labour market showed a broad-based improvement in July, with unemployment falling to 5.1% from 5.5% in June and labour force participation rebounding after a softer April-June quarter, according to the latest PLFS data released by MoSPI.Labour participation reboundsThe overall Labour Force Participation Rate (LFPR) for people aged 15 years and above rose to 55.4% in July from 54.4% in June, reversing the decline seen between March and May. Rural participation led the recovery, climbing to 58% from 56.6%, while urban LFPR edged up to 50.4% from 50.1%.The improvement comes after the April-June quarter had seen overall LFPR fall to 54.6% from 55.5% in January-March. Rural LFPR had declined to 56.9% from 58.2%, while urban LFPR remained broadly unchanged at 50.2%.Female participation provided another positive signal. Overall female LFPR rose sharply to 34.4% in July from 32.7% in June, with rural female participation increasing to 38.8% from 36.6%. Urban female LFPR saw a smaller rise to 25.3% from 24.8%.Unemployment falls, rural areas leadThe unemployment rate for people aged 15 years and above fell to 5.1% in July from 5.5% in June. Rural unemployment dropped to 4.5% from 5%, while urban unemployment was broadly stable at 6.7%, compared with 6.6% in June.The improvement was visible across genders in most segments. Overall male unemployment fell to 5% from 5.3%, while rural male unemployment declined to 4.6%. Urban male unemployment also remained broadly stable month-on-month, but was lower at 5.9% than 6.6% a year earlier.Female unemployment also declined overall and in rural areas, although urban female unemployment rose to 8.8% from 8.4% in June.More people are workingThe Worker Population Ratio (WPR), which measures the share of the population employed, rose to 52.5% in July from 51.4% in June — its first increase since February. Rural WPR increased more sharply to 55.4% from 53.8%, while urban WPR edged up to 47%.The July figures suggest that the labour market regained momentum after a softer second quarter. Importantly, the rise in participation was accompanied by an increase in the share of people actually working, rather than being driven solely by more people entering the labour force.The PLFS data also show that the improvement is not confined to a single segment: rural employment indicators strengthened notably, while female participation picked up. The data therefore point to a broader improvement in labour-market conditions in July, even as urban unemployment and female urban unemployment remain areas to watch.
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Japan’s Q2 GDP growth slows to 1.1% as Iran war weighs on investment, consumer spending
Japan’s economy grew slower than expected in the second quarter, as the fallout from the West Asia conflict weighed on business investment and left households reluctant to spend, government data showed on Monday August 17.Gross domestic product expanded at an annualised rate of 1.1% in the three months to June, the Cabinet Office reported, well short of the 2% growth economists had forecast and down from a revised 1.9% pace in the previous quarter.Also Read: Asian stocks trade mixed; Nikkei slips as Japan’s Q2 growth misses estimatesOn a quarterly basis, output rose 0.3%, missing the 0.5% estimate, though the reading still extended Japan’s run of expansion to a third straight quarter.Capital spending proved the biggest drag, contracting 1.2% during the quarter against forecasts for a 0.4% rise, and steeper than the previous period’s 1% fall. Private consumption, which accounts for more than half of economic output, stagnated against expectations of a 0.5% increase as shoppers grappled with the rising cost of living.Reuters reported that this was the first full quarter to reflect the impact of the Iran war, which has driven up energy costs for businesses and households alike. The conflict has disrupted supply chains and pushed up prices for fuel and petroleum-based products, complicating the Bank of Japan’s efforts to communicate the timing of its next rate rise.Exports however, offered a rare bright spot, with net external demand adding 0.5% to growth on the back of strong US demand for Japanese hybrid vehicles and continued global investment in artificial intelligence, which boosted shipments of semiconductor equipment as a weaker yen also aided shipments.Also Read: Goldman Sachs picks China stocks poised to benefit from a new wave of AI-related hardware exportsThe soft consumption figures could pose a fresh challenge for Prime Minister Sanae Takaichi, whose approval ratings have slipped roughly six months after a landslide election win, as voters contend with persistently high prices for everyday goods. Takaichi has already introduced subsidies to cap utility bills and plans to cut the sales tax on food to 1% for two years from April.Despite the weaker headline figures, traders were pricing in an 80% chance that the Bank of Japan would raise its benchmark rate at its next policy meeting on September 18, according to swaps market data cited by Bloomberg, with the central bank said to be weighing a faster pace of hikes than its usual twice a year system.(Edited by : Gautam Krishna)
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Europe emerges top destination for India’s electric car shipments in Q1
Europe emerged as the top destination for Indian electric motor car shipments in the first quarter of 2026-27, with the United Kingdom ranking as the second-largest market and recording imports worth $78.7 million, compared with negligible shipments in the corresponding quarter of the previous year, according to the commerce ministry data.India’s exports of electric motor cars surged in the first quarter of 2026-27, with export earnings rising sharply to $369 million from $22.2 million a year earlier, while shipments jumped to 10,802 vehicles from 1,309 units, reflecting growing global competitiveness of India’s electric mobility industry.The growth reflects the growing international acceptance of India-manufactured electric vehicles (EVs) and the country’s emergence as an important production hub for sustainable mobility solutions, an official said.The export story was driven by Europe, which emerged as the principal destination for Indian electric cars.Spain became the largest market, with exports rising to $146.4 million, accounting for nearly 40% of India’s total exports under this category.A total of 4,007 electric vehicles were shipped to Spain during the quarter, making it the single largest destination by both value and volume, the data showed.It added that the UK emerged as the second-largest market, recording imports worth $78.7 million compared with almost negligible shipments in the corresponding quarter of the previous year.”Export volumes climbed from just one vehicle to 2,646 vehicles, indicating growing penetration of Indian-made electric cars into one of Europe’s most developed EV markets,” it said.Several other European economies also witnessed strong growth in imports of Indian electric vehicles.Exports to Germany reached $25.1 million, followed by Norway ($21.1 million) and Denmark ($21 million).Additional demand came from Belgium ($12.9 million), the Netherlands ($12 million), Greece (USD 3.8 million), Italy ($2.7 million), Sweden ($2.1 million), and Poland ($1.6 million).”The broad European footprint reflects the growing relevance of Indian manufacturers in global EV supply chains and the increasing demand for affordable electric mobility solutions,” the official said.Beyond Europe, India also expanded exports across Asia-Pacific markets.Japan imported $13.4 million worth of electric cars, while shipments were recorded to Israel ($2.8 million), Australia ($2.7 million), Singapore ($1.7 million), Taiwan ($1.3 million), and South Korea.Exports to these technologically advanced markets underscore the improving quality, safety standards and global competitiveness of Indian electric vehicle manufacturing.While traditional neighbouring markets such as Nepal continued to remain important destinations with imports worth $8.1 million, the diversification towards advanced European markets represents a notable shift in India’s EV export profile, the data showed.New opportunities also emerged in Latin America, where exports reached Brazil ($2.4 million), Colombia ($1 million), Chile ($0.4 million), and Costa Rica ($0.5 million).
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Govt sets 63,810-tonne-a-day LPG production plan to guard against another supply shock
India has for the first time set refinery- and company-specific maximum LPG production levels, creating a framework that would allow the government to quickly ramp up domestic cooking-gas supplies during future disruptions.The move follows the West Asia conflict, which exposed India’s dependence on imported LPG and forced the government to take emergency measures to protect supplies to households.Under an August 13 order from the Ministry of Petroleum and Natural Gas, 21 refineries and upstream companies have been assigned a combined maximum production potential of 63,810 tonnes of LPG a day.That is equivalent to about 70% of India’s current daily LPG consumption and is significantly higher than the roughly 35,900 tonnes a day the country produced domestically in FY26.The specified production levels aren’t intended to operate as normal daily production requirements. Instead, they provide the government with a facility-wise framework for increasing output when domestic supplies come under pressure.Reliance’s Jamnagar refinery gets largest production levelReliance Industries’ domestic-tariff-area refinery at Jamnagar in Gujarat has been assigned the largest individual production level at up to 18,000 tonnes a day.The refinery has annual crude-processing capacity of about 33 million tonnes and supplies products to the domestic market. No target has been specified for Reliance’s separate 35.2-million-tonne export-oriented refinery at the same complex.Eighteen refineries operated by public-sector oil companies have collectively been assigned production of up to 31,470 tonnes a day.Nayara Energy’s 20-million-tonne-a-year Vadinar refinery has been assigned 4,480 tonnes a day, while upstream producers and gas processors including ONGC and GAIL have together been assigned 6,460 tonnes a day.Why India wants an LPG bufferIndia’s vulnerability became apparent during the recent disruption to energy supplies from West Asia.The country consumed 33.2 million tonnes of LPG in FY26, equivalent to roughly 91,000 tonnes a day. Domestic production amounted to 13.1 million tonnes, or about 35,900 tonnes a day, while imports accounted for about 21.3 million tonnes.That meant more than 60% of India’s LPG requirements were met through imports.The disruption to the Strait of Hormuz during the Iran conflict was particularly significant because the narrow waterway handles much of India’s LPG supplies from West Asian producers, including Saudi Arabia.As overseas supplies tightened, the government directed domestic refiners in March to maximise LPG production, including by diverting some refinery streams that would otherwise have been used to produce petrochemicals.Domestic LPG production was eventually raised to around 55,000 tonnes a day at the height of the supply crunch.The government also prioritised household supplies, initially restricting LPG sales to industrial and commercial customers before gradually restoring them as the situation improved. Households faced longer intervals between cylinder bookings and were encouraged, where possible, to switch to piped natural gas.Those emergency production measures were gradually withdrawn after supplies began easing from mid-June.New framework makes crisis measures permanentThe August 13 order effectively turns some of the lessons from that episode into a standing supply-security framework.Unlike the emergency measures introduced during the crisis, the new system specifies how much LPG individual facilities should be capable of producing when required.The government has also given itself the power to direct refiners, oil-marketing companies and upstream producers to increase LPG output for specified periods and quantities when necessary to ensure adequate domestic supplies and distribution at fair prices.When such directions are issued, companies will be required to increase production within the stipulated timeframe.Refiners and upstream companies have also been directed to maintain adequate infrastructure for storing, transporting and evacuating the specified quantities of LPG, either themselves or through other entities such as the railways and road-tanker operators.Refineries asked to find ways to squeeze out more LPGThe government also wants companies to examine whether existing refining infrastructure can produce more LPG.The order directs companies to implement technically and economically feasible measures such as converting naphtha into LPG and upgrading fluid catalytic cracking units.Such investments could allow refineries to increase LPG production beyond the levels currently considered achievable.Companies undertaking such upgrades will have to inform the Centre for High Technology or another authorised agency.The framework will also evolve as India’s refining and gas-processing capacity expands.The government will update the production schedule twice a year, on January 1 and July 1, to account for new refineries and upstream projects as well as additional capacity created through technology, storage, transportation and other infrastructure upgrades.The framework is intended to leave India better prepared for another disruption to overseas LPG supplies, reducing the risk that an external shock again forces the government to ration supplies or rapidly rearrange refinery production.
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India cuts windfall tax on diesel, ATF exports; petrol duty set at zero
The government has cut the windfall tax on diesel and aviation turbine fuel (ATF) exports and removed the export duty on petrol, with the revised rates taking effect from August 15.The total levy on diesel exports has been reduced to ₹24 per litre from ₹25.5 per litre, while the levy on ATF exports has been cut to ₹19.5 per litre from ₹22 per litre.The export duty on petrol has been reduced to nil from ₹3.5 per litre, according to notifications issued by the Finance Ministry on August 14.The latest move partly reverses the increase announced earlier this month. On August 3, the government had raised the petrol export duty to ₹3.5 per litre from ₹2.5 per litre, while the total levy on diesel was increased to ₹25.5 per litre from ₹15.5 per litre. The ATF levy was raised to ₹22 per litre from ₹14.5 per litre.Fortnightly reviewThe Centre reviews export levies on petroleum products every fortnight, with the rates linked to movements in international crude oil and petroleum product prices.The latest changes come as global oil prices remain volatile, with developments in the West Asia conflict continuing to influence crude and refined fuel markets. The government’s fortnightly revisions are aimed at adjusting the levies in line with global market conditions.The government had raised the export levies sharply at the start of August. The diesel levy, in particular, increased by ₹10 per litre in that revision, while the ATF levy rose by ₹7.5 per litre. Petrol saw a ₹1-per-litre increase.The latest revision brings some relief to refiners and exporters compared with the rates that had been in force since August 3, although the diesel and ATF levies remain above their levels before that increase.Windfall tax regime returns amid oil price volatilityIndia had first introduced a windfall tax regime in July 2022 after a sharp rise in global crude oil prices. The framework covered domestically produced crude oil as well as exports of petrol, diesel and ATF. The government withdrew the earlier regime in December 2024.The export levy regime was reintroduced in March 2026 amid another surge in global oil prices linked to the conflict in West Asia. The government introduced export levies on petrol, diesel and ATF from that date to discourage exports and help ensure domestic availability of petroleum products. Petrol initially carried a nil levy but was brought under a positive export duty from May.Since then, the rates have been revised several times as global oil prices and refined-product markets have changed.The rates were revised on July 1 and again on July 16 before the August 3 increase. The latest notification marks the second revision this month.Will the latest export duty changes affect petrol and diesel prices?The revised duties are applicable to petroleum products exported from India, rather than fuel sold in the domestic market. The notification does not change the excise duty on petrol or diesel for domestic consumers, so the latest revision by itself should not result in a change in pump prices.The immediate impact will instead be on refiners and exporters, whose tax liability on overseas shipments will change under the revised rates. The government can review these levies every fortnight and change them depending on prevailing market conditions.First Published: Aug 15, 2026 11:09 AM IST
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GTRI: India must treat maritime insecurity as recurring risk to global trade, not a temporary problem
The Global Trade Research Institute (GTRI) has said that India must treat maritime insecurity as a recurring risk to international trade and not as a temporary problem. Stating that the Red Sea crisis completing 1,000 days without a durable solution showed that military action can intercept missiles but cannot restore commercial confidence, GTRI’s Founder Ajay Srivastava said that “for India, the crisis has made trade with Europe, the UK, North Africa and the US East Coast slower and more expensive, hurting MSME exporters through higher freight, insurance and working-capital costs.” Highlighting a growth in shipping chokepoints, he recommended that India must “strengthen domestic shipping capacity, trade finance, naval protection and alternative transport corridors.”Houthi attacks since November 2023 have forced shipping lines to reroute vessels from the Suez Canal around the Cape of Good Hope, adding 10-14 days to voyages and sharply raising freight, fuel, insurance, inventory and working-capital costs. The GTRI said that around 80% of India-Europe merchandise trade normally uses this corridor, “exposing exports to Europe, the UK, North Africa and the US East Coast. MSME exporters of textiles, engineering goods, chemicals, leather, carpets, food and marine products have been hit particularly hard.The crisis began on November 19, 2023, when Yemen’s Houthi movement hijacked the Galaxy Leader. The Japanese-chartered vehicle carrier was linked to an Israeli businessman. The Houthis seized the ship and its 25 crew members. The Houthis claimed they were supporting Palestinians in Gaza and would attack ships linked to Israel. They later widened their campaign to vessels connected with the United States and United Kingdom. Some ships with no clear Israeli connection were also targeted. More than 100 merchant vessels have since been attacked or threatened. The Rubymar sank in March 2024 and the Tutor in June 2024. The Magic Seas and Eternity C were sunk in July 2025. Attacks on the True Confidence, Sounion and other vessels killed seafarers and created serious environmental risks.Western naval forces intercepted many Houthi missiles and drones. The US, UK and Israel also attacked Houthi targets in Yemen. However, these operations failed to end the Houthis’ ability to attack ships. Maersk and Hapag-Lloyd began returning selected services to the Suez route in July and August 2026. But the August 11 attack on the Egyptian-owned Tihamah, which reportedly killed four crew members and two rescuers, indicated that the route remains dangerous.Major container companies continue to send much of their Asia-Europe and Asia-US East Coast trafic around Africa’s Cape of Good Hope. Suez Canal trafic remains 60-70% below its pre-crisis level. GTRI noted that the diversion around Africa absorbs an estimated 5-7% of global container capacity and adds 10-14 days to many voyages, with freight rates remaining about 25-40% above normal levels, while ships also face war-risk insurance charges.Markets served through this corridor account for about half of India’s exports and 30% of imports. The most exposed markets are the UK, Germany, the Netherlands, Belgium, France, Italy, Spain, Greece, Egypt, Israel, Jordan, North Africa and the US East Coast. The US West Coast is less affected because most cargo travels across the Pacific. Trade with the UAE, Oman and Qatar does not require the Suez Canal, but it still faces higher insurance costs and wider regional security risks. At the worst points of the crisis, freight rates on some India-Europe and India-US routes increased by 200-400%. Longer voyages raised fuel, freight, insurance and inventory costs. They also delayed payments and blocked exporters’ working capital for additional weeks. Vulnerable products include textiles, garments, engineering goods, chemicals, leather, carpets, rice, spices, grapes and marine products, as they often have low profit margins and cannot easily absorb higher freight costs.Imports of European machinery, chemicals, auto components, metals and medical equipment also became more expensive and took longer to arrive. India deployed naval ships and surveillance aircraft in the Gulf of Aden, Arabian Sea and western Indian Ocean. Indian warships rescued crews, assisted damaged vessels and countered piracy.
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Govt rolls out foreign asset disclosure scheme for small taxpayers
The Income Tax Department on Saturday notified a new voluntary disclosure scheme allowing small taxpayers to declare certain undisclosed foreign assets and income by paying an effective 60% tax, as the government seeks to bring overseas holdings into the tax net without exposing eligible taxpayers to further penalties or prosecution.The Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS), announced in the 2026-27 Budget, will take effect from August 16, with online declarations open until December 31, 2026, the Central Board of Direct Taxes (CBDT) said.The scheme is aimed at taxpayers such as students, young professionals, technology employees and relocated non-resident Indians who may have failed to disclose eligible foreign assets or income.Under the rules, taxpayers will pay 30% tax on the value of the declared undisclosed foreign asset or income, plus an additional amount equal to the tax, effectively taking the levy to 60%.The fair market value of assets will be determined as of March 31, 2026, the CBDT said.There are two categories of declarations under FAST-DS.For an undisclosed foreign asset or foreign income that was not previously offered to tax, the aggregate value must not exceed ₹1 crore.A second category covers foreign assets that were already offered to tax or acquired when the taxpayer was a non-resident but were not reported in the relevant tax-return schedule. The threshold for such declarations is ₹5 crore, with a ₹1 lakh fee payable.The CBDT said the scheme is intended to enable eligible taxpayers to disclose “certain undisclosed foreign assets, undisclosed foreign income, or undeclared foreign assets” on payment of the specified tax or fee.For example, where an undisclosed foreign bank account is valued at ₹60 lakh and undisclosed foreign income amounts to ₹20 lakh, the total tax payable would be ₹48 lakh, according to an example in the CBDT’s frequently asked questions.Taxpayers making valid declarations will receive immunity from any further tax or penalty and from prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, in respect of the assets or income disclosed.The declared income or the amount invested in the disclosed asset will also not be included in the taxpayer’s total income under the Income-tax Act, 1961 or the Black Money Act, the CBDT said.Notifying the rules for the scheme, the CBDT said the scheme ”enables eligible taxpayers to declare certain undisclosed foreign assets, undisclosed foreign income, or undeclared foreign assets, on payment of a specified tax or fee”.
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Why India wants to rein in state mining taxes — and why mineral-rich states are worried
India’s government has said inconsistent state-level taxes on mineral rights and mineral-bearing land raise domestic costs and fragment the national market, according to a Reuters report.The comments came a day after Parliament passed legislation restricting states from imposing new mining-related levies, despite opposition from mineral-rich states.The Centre said unchecked and differing state taxes could make Indian minerals less competitive and increase the country’s reliance on imports.Parliament on Thursday passed the Mines and Minerals (Development and Regulation) Amendment Bill, which bars state governments from imposing new taxes, cesses or other levies on mineral rights and mineral-bearing land except under conditions permitted by the central government.The legislation has drawn opposition from mineral-rich states, which argue that the restrictions could weaken an important source of revenue.Jharkhand raises concerns over mining revenueJharkhand Chief Minister Hemant Soren late Thursday urged Prime Minister Narendra Modi to reconsider the legislation.In a letter posted on X, Soren said mining revenue accounted for 84.9% of Jharkhand’s non-tax revenue in fiscal year 2024-25 and warned that any significant reduction in such receipts could directly affect the state’s ability to fund development, welfare and social-security programmes.The Centre, however, said the legislation does not curtail states’ rights over land, minerals or mineral taxation.It said states would continue to receive about 90% of mining-related taxes and payments.Centre says differing state taxes raise costsAccording to the Reuters report, the government’s case for restricting additional state levies rests partly on concerns that a patchwork of taxes across mineral-producing states could raise costs for domestic industries.Differing levies could make domestically produced minerals less competitive and potentially encourage imports, according to the government.The disagreement consequently pits the Centre’s argument for a more uniform national framework against concerns among mineral-rich states about protecting their ability to raise revenue from natural resources.
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India welcomes private, foreign nuclear players — but regulators can stop projects midway
India has proposed a tightly controlled approval framework for private nuclear-power projects, potentially clearing the way for foreign reactor technologies while retaining regulatory oversight at key stages of development, according to a Reuters report.Draft rules and regulations released late Friday provide the clearest indication yet of how India plans to regulate private and foreign participation in its nuclear-energy sector following changes to the country’s nuclear law, Reuters reported.Under the proposed framework, foreign reactor designs that have established operating records overseas would be eligible for use in India.Developers, however, would face extensive safety reviews throughout the life of a project rather than receiving a single approval allowing construction to proceed through all subsequent stages.Regulators would have the power to stop a project at critical milestones if safety or other regulatory requirements aren’t met, according to the draft rules. These checkpoints would extend from construction through later stages, including the loading of nuclear fuel.The framework suggests India is seeking to balance its push to attract private capital and overseas nuclear technology with tight regulatory control over an industry where safety and national-security considerations have historically limited private participation.The proposals follow India’s move to amend its nuclear-sector legislation to allow greater participation by private and foreign investors, marking a significant shift from a system long dominated by state-owned entities.Foreign reactor suppliers with technologies already operating overseas could potentially benefit from the proposed rules, though eligibility wouldn’t amount to automatic approval. Individual projects and technologies would remain subject to India’s regulatory review process.The proposed framework also indicates that regulatory scrutiny would continue throughout the development of a nuclear project, giving authorities the ability to withhold permission to proceed to subsequent stages if prescribed requirements aren’t satisfied.The draft rules are an important step towards defining how India’s newly opened nuclear sector could work in practice, including the conditions under which private developers and foreign reactor technologies would be allowed to participate.(Edited by : Prashant)First Published: Aug 14, 2026 11:01 PM IST
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