Gujarat has firmly established itself as a frontrunner in India’s renewable energy journey. As per recent updates from the Legislative Assembly, the state’s total installed capacity of renewable energy projects has reached 32,924 megawatts (MW). This accounts for nearly 15% of India’s total installed renewable capacity of 2,14,677 MW, reflecting the state’s strategic push toward a sustainable energy future.

PM Surya Ghar Yojana: Solar Rooftop Milestone

One of the most significant achievements has been in the area of solar rooftop installations. More than three lakh houses in Gujarat have solar rooftop systems, making up 40% of the country’s total. This is largely credited to progressive initiatives like the PM Surya Ghar Yojana and Surya Gujarat Yojana, which aim to empower households to become self-reliant in energy production.

Under Surya Gujarat Yojana alone, solar rooftops have been installed on 5.21 lakh houses, generating 2,073 MW of power. This initiative not only promotes sustainable living but also contributes significantly to energy cost reduction for residents.

Boost for Wind and Solar Projects

Apart from rooftops, Gujarat also plays a pivotal role in wind and ground-mounted solar energy. Of India’s 48,588 MW wind power capacity, Gujarat contributes approximately 12,584 MW, representing 26% of the national figure.

The installed solar power capacity in the state stands at 18,125 MW, about 18% of India’s total solar capacity. These statistics underscore the state’s robust renewable infrastructure and policy direction.

Upcoming Lignite-Based Power Projects

While renewable energy remains a key focus, Gujarat is also preparing to leverage its lignite reserves. Plans are underway to develop 1,250 MW lignite-based power plants in Kutch, Bhavnagar, and Bharuch. This move aims to utilise the state’s natural resources while ensuring energy security and addressing peak demand requirements.

Financial Relief for Power Consumers

The state government has also taken concrete steps to ease electricity costs for its residents. A ₹100 crore allocation has been made to offer a ₹2,950 subsidy per connection towards metering and connectivity charges for rooftop solar systems up to 6 kW. This incentive is expected to further accelerate solar adoption among households.

In addition, Gujarat has provided fuel charge relief to consumers. In March 2024, 1.5 crore consumers benefited from a 50 paise per unit reduction, followed by a 40 paise per unit cut in December 2024. Cumulatively, over ₹2,000 crore in electricity bill relief has been extended to users of state-owned power companies.

Conclusion

With a combination of strong policy measures, financial incentives, and ambitious targets, Gujarat continues to be a leader in India’s clean energy transition. Its substantial contributions to solar, wind, and total renewable capacity reflect both strategic planning and effective execution.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks; read all the related documents carefully before investing.

India’s defence production has touched a record high of ₹1,27,000 crore (US$ 14.80 billion) in the financial year 2023-24, according to the Ministry of Defence. This marks a significant milestone under the Make in India initiative, which aims to enhance domestic manufacturing and reduce reliance on imports.

The most notable shift is in the origin of India’s defence equipment. From a time when 65-70% of defence needs were met through imports, India has now reversed that ratio — 65% of defence equipment is currently manufactured domestically. This reflects the country’s growing self-reliance and technological capacity in military production.

Export Growth: From Jackets to Jets

India’s defence sector is not only meeting local demand but also catering to international buyers. The list of exported equipment is expanding and currently includes:

• Bulletproof jackets
  
• Dornier (Do-228) aircraft
  
• Chetak helicopters
  
• Fast interceptor boats
  
• Lightweight torpedoes
  

An interesting and symbolic example of this progress is that boots manufactured in Bihar are now being used by the Russian Army, demonstrating that Indian defence exports are being accepted for their quality on the global stage.

Looking Ahead: ₹3 Lakh Crore Production Goal by 2029

India has set its sights on reaching ₹3,00,000 crore (US$ 34.88 billion) in defence production by 2029. This goal is part of a larger vision to transform the nation into a global defence manufacturing hub, creating jobs and boosting high-tech innovation.

Some of the key Indigenous defence systems developed in recent years include:

• Dhanush Artillery Gun System
  
• Advanced Towed Artillery Gun System (ATAGS)
  
• Main Battle Tank Arjun
  
• Light Combat Aircraft (LCA) Tejas
  
• Akash Missile System
  
• Indigenous Aircraft Carriers
  

These domestically produced systems serve as a foundation for India’s increasing self-reliance in defence hardware and technology.

FDI Reforms to Attract Global Collaborations

To support this growth trajectory, the Government of India revised its Foreign Direct Investment (FDI) policy in September 2020. The revised policy allows:

• Up to 74% FDI through the automatic route
  
• Beyond 74% via government approval
  

Since April 2000, India has received ₹5,516.16 crore (US$ 643.1 million) in FDI within the defence industry. These reforms are designed to facilitate joint ventures, enable technology transfers, and encourage global defence manufacturers to establish a presence in India.

Budgetary Backing: A Decade of Growth

India’s defence budget has also witnessed a consistent increase over the past decade, signalling long-term commitment to military modernisation and indigenisation. The budget has risen from:

• ₹2,53,000 crore (US$ 29.43 billion) in FY14
  to
  
• ₹6,81,000 crore (US$ 79.24 billion) projected in FY26

This increase supports both procurement and infrastructure development, helping build a robust ecosystem around defence manufacturing.

Conclusion

India’s defence manufacturing journey is steadily moving from being import-dependent to globally competitive. With ambitious production goals, improved policy frameworks, increasing exports, and growing international recognition — as highlighted by the use of Indian-made boots by the Russian army — the nation is establishing itself as a serious player in the global defence landscape.

While challenges remain, the current trajectory suggests that India is well on course to achieve its vision of becoming a leading defence manufacturing hub by the end of the decade.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks; read all the related documents carefully before investing.

In a significant move favouring electric vehicle (EV) manufacturers, Maharashtra Chief Minister Devendra Fadnavis announced the rollback of the proposed six per cent tax on high-end electric vehicles priced above ₹30 lakh. 

The decision, declared during a legislative session on Wednesday, marks a strategic pivot from a policy initially introduced in the 2025–26 state budget by Deputy Chief Minister and Finance Minister Ajit Pawar.

The proposed levy was designed to generate additional revenue but sparked concerns over its potential to discourage the adoption of non-polluting vehicles.

Minimal Revenue Impact and Potential Harm to EV Adoption

While addressing the concerns, CM Fadnavis stated that after due consideration, the government concluded that the proposed tax would not yield substantial revenue. More importantly, it could undermine the administration’s ongoing efforts to promote electric mobility across the state.

“It could send a wrong signal about our commitment to electric mobility. Therefore, the state government will not go ahead with the six per cent tax on high-end electric vehicles,” Fadnavis clarified.

He further emphasised that facilitating a shift from traditional fuel-based vehicles to electric alternatives is essential for tackling air pollution—a pressing issue in the state’s urban centres.

Maharashtra’s Aspiration to Be India’s EV Capital

Highlighting the state’s ambition to become the country’s electric vehicle capital, Fadnavis pointed to rapid advancements in EV manufacturing hubs located in Pune and Chhatrapati Sambhajinagar. These industrial centres are witnessing a surge in investments and production activity, reinforcing Maharashtra’s lead in the sector.

“The contribution of vehicles (running on petrol or diesel) to air pollution is the highest. A shift towards electric vehicles will help reduce this problem,” the Chief Minister noted.

Rise in EV Adoption Across Public and Private Transport

Maharashtra is witnessing a steady rise in EV registrations, with electric vehicles now accounting for over 50 per cent of newly registered vehicles in the state. The transition is not limited to private ownership. The public transport sector is also embracing the shift, with over 2,500 electric buses being introduced in phases to modernise the fleet and lower emissions.

This increased adoption is backed by robust government support and a growing consumer preference for sustainable transport alternatives.

Building the Backbone: EV Infrastructure Expansion

Recognising that infrastructure plays a critical role in accelerating EV adoption, the Maharashtra government is investing in an extensive electric vehicle charging network across the state. This large-scale deployment aims to reduce range anxiety, improve accessibility, and ensure a seamless experience for EV users.

Conclusion

With a combination of policy support, infrastructure expansion, and industrial development, Maharashtra is laying a solid foundation for a future driven by clean mobility.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks; read all the related documents carefully before investing.

In recent months, the Reserve Bank of India (RBI) has taken significant steps to infuse liquidity into the banking system, addressing the growing concern over a funds crunch and supporting credit growth. According to the RBI’s latest monthly bulletin, the central bank injected approximately ₹15.5 lakh crore into the system over the past two months. This move is part of an ongoing strategy to manage liquidity fluctuations and ensure the smooth functioning of the financial markets.

Sources of Liquidity Tightness

Liquidity tightness has been a persistent issue in the Indian banking system. Several factors have contributed to this situation:

• Foreign Exchange Market Interventions: To curb excessive volatility in the rupee, the RBI intervenes in the foreign exchange market, buying and selling dollars. This process drains rupee liquidity from the banking system.

• Government Tax Flow Dynamics: The government’s tax inflows and outflows also influence liquidity, with periods of high tax payments leading to short-term liquidity strain.

• Currency Leakages and FPI Outflows: Another contributing factor has been the outflow of foreign portfolio investment (FPI) funds, which further exacerbates liquidity constraints.

Measures Taken by the RBI

To tackle the liquidity challenges, the RBI has implemented a series of measures, both durable and transient in nature. In the fourth quarter of FY25, the RBI injected ₹5.5 lakh crore of durable liquidity into the banking system. This was achieved through the following mechanisms:

• Open Market Operations (OMO): The RBI conducted purchases of Government Securities (G-Secs) from banks to infuse long-term liquidity into the system.

• Variable Repo Rate (VRR) Auctions: The RBI has been conducting VRR auctions, allowing banks to place G-Secs as collateral and draw short-term liquidity.

• Forex Swaps: The RBI also engaged in US Dollar/Indian Rupee buy/sell swaps, where banks sell dollars to the RBI, which then returns rupee funds with the swap premium after the agreed period.

Daily VRR Auctions and Their Impact

Since January 16, the RBI has been conducting daily VRR auctions to mitigate the transient liquidity tightness. These auctions have been pivotal in maintaining liquidity within the banking system. The RBI’s efforts included 2 main VRR operations and 22 fine-tuning operations, injecting a total of ₹9.68 lakh crore into the system between February 16 and March 17, 2025.

These VRR auctions, with maturities ranging from 1 to 8 days, have been crucial in addressing short-term liquidity challenges, ensuring that banks have access to sufficient funds to meet their immediate requirements.

Deficit and Surplus Liquidity Conditions

Despite the RBI’s efforts, liquidity deficit conditions persisted, particularly in the latter half of February and early March 2025. The seasonal uptick in currency in circulation (CiC) exacerbated the deficit during this period. However, the RBI’s intervention through various measures helped reduce the severity of the deficit.

• The average daily net injection under the Liquidity Adjustment Facility (LAF) stood at ₹1.41 lakh crore from February 16 to March 13, compared to ₹1.92 lakh crore during the previous month.

• The liquidity deficit reached a peak of ₹3.15 lakh crore on January 23, but by March 18, it had moderated to ₹2.26 lakh crore.

Standing Deposit Facility (SDF)

In addition to the liquidity interventions, the RBI has observed increased placements of funds by banks under the Standing Deposit Facility (SDF). Between February 16 and March 13, the average placement stood at ₹1.15 lakh crore, higher than ₹0.85 lakh crore in the previous month. This indicates a higher level of surplus funds within the banking system, which banks are depositing with the RBI rather than deploying in the market.

Conclusion

The RBI’s liquidity interventions have played a crucial role in stabilising the banking system amidst the challenges posed by liquidity tightness. While the liquidity deficit persists, the central bank’s ongoing efforts to manage it are proving to be effective in maintaining stability within the financial markets. The combination of durable and transient measures, including OMO purchases, VRR auctions, and forex swaps, has helped ensure that banks continue to function smoothly and that credit growth remains supported in these uncertain times.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks; read all the related documents carefully before investing.

The Reserve Bank of India (RBI) has introduced significant changes to the Priority Sector Lending (PSL) framework, aiming to ensure more equitable lending practices. These new guidelines, effective from April 1, 2025, provide additional safeguards for small borrowers, specifically protecting those taking loans of up to ₹50,000 under the PSL category.

Protection for Smaller Loan Amounts

One of the major changes outlined by the RBI is the prohibition of excessive charges, particularly for smaller loans within the PSL. In its directive, the RBI has clearly stated that no loan-related or ad hoc service charges, including inspection charges, will apply to loans up to ₹50,000. This policy change aims to shield small borrowers from unnecessary financial burdens, promoting fair and transparent lending practices by banks.

The move is seen as a significant step in reducing the financial strain on individuals who may already be vulnerable and ensuring that financial services remain accessible to those who need them most.

Clarification on Loans Against Gold Jewellery

In the updated guidelines, the RBI has also clarified that loans taken against gold jewellery acquired by banks from Non-Banking Financial Companies (NBFCs) will no longer qualify under the PSL category. This means that banks cannot classify these gold-backed loans as part of their PSL targets, reinforcing the central bank’s focus on directing funds to genuinely underserved sectors like agriculture, small businesses, and weaker sections of society.

Continuity for Existing PSL Loans

To maintain stability for existing borrowers and ensure a smooth transition, the RBI has confirmed that all loans falling under the earlier PSL guidelines (2020 framework) will continue to be considered as priority sector loans until their maturity. This provision ensures that borrowers will not be disadvantaged by the changes and can continue to benefit from the PSL status of their loans.

Enhanced Monitoring and Transparency

The new guidelines also place a stronger emphasis on monitoring and transparency. Banks will be required to submit detailed data on their priority sector advances on a quarterly and annual basis. The RBI mandates that these reports must be submitted within 15 days after the end of each quarter and within one month after the close of the financial year. This enhanced reporting is aimed at improving accountability and ensuring that PSL targets are met more effectively.

Consequences of Failing to Meet PSL Targets

For banks that fail to meet their prescribed PSL targets, the RBI has introduced a financial remedy. Such banks will be required to contribute to the Rural Infrastructure Development Fund (RIDF) and other schemes managed by institutions like NABARD. This policy ensures that even if banks fall short of their lending obligations, they are still contributing to the development of the priority sectors.

Support for COVID-19 Relief Loans

The RBI has also affirmed that loans extended under specific COVID-19 relief measures will continue to be classified as priority sector lending. This decision aims to assist sectors that are still recovering from the pandemic’s economic impact, ensuring that they have continued access to financial support.

Conclusion: Strengthening Financial Inclusion

With the implementation of these updated PSL guidelines, the RBI aims to foster financial inclusion and promote socio-economic growth. By ensuring that credit reaches underserved sectors, such as small businesses, agriculture, and weaker sections of society, the RBI is working towards building a more inclusive and equitable financial system. The new framework underscores the central bank’s commitment to ensuring fair lending practices while directing essential credit where it is needed the most. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.