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From January 1, 2026, India faces a significant challenge in the European Union market as 87% of its exports will incur higher import tariffs due to the suspension of Generalised Scheme of Preferences (GSP) benefits. Previously, GSP allowed Indian goods to enter the EU at reduced tariffs, but now exporters must pay full Most Favoured Nation (MFN) rates, impacting key sectors such as textiles, chemicals, and machinery. For instance, apparel that once faced a 12% tariff will now incur the full rate. This change follows the EU's "graduation" rules, which remove preferences once export thresholds are met for three consecutive years. The timing is particularly difficult, coinciding with the EU's Carbon Border Adjustment Mechanism, which adds further costs. The Global Trade Research Institute warns that this combination of higher tariffs and compliance costs could severely undermine India's competitiveness, making 2026 one of the toughest years for Indian exports to Europe in over a decade. 
Published: Jan 22 2026, 3 pmeznews.inGerman Chancellor Friedrich Merz addressed the 56th World Economic Forum in Davos on January 22, 2026, emphasizing the potential for collaboration among nations favoring regulation over protectionism amid the "era of great powers." His remarks came just days before the anticipated signing of a landmark free trade agreement (FTA) between India and the European Union, which he described as a significant opportunity for economic growth. Merz highlighted the upcoming visit of European Commission President Ursula von der Leyen to India, where the FTA, dubbed "the mother of all deals," is expected to be finalized during the India-EU summit on January 27. This agreement aims to enhance trade ties, with the EU being India's largest trading partner, and is projected to create a market encompassing 2 billion people, significantly impacting global GDP. The FTA is seen as a crucial step in strengthening bilateral relations amid ongoing global trade disruptions.
Published: Jan 22 2026, 4 pmeznews.inThe second phase of the Vizhinjam International Seaport development in Kerala is set to commence with an investment of ₹9,700 crore by Adani Vizhinjam Port Pvt. Ltd. (AVPPL), following the successful completion of the first phase, which saw an investment of ₹8,867 crore. Kerala Ports Minister V.N. Vasavan announced that Chief Minister Pinarayi Vijayan will inaugurate the new phase, which aims to enhance the port's capacity from 1 million TEUs to 5 million TEUs by expanding the berth from 800 meters to 2,000 meters and the breakwater from 3 km to 4 km. The project will also introduce new facilities, including a railway yard and multipurpose berth, without requiring additional land acquisition. The port has already established itself as a crucial hub for global cargo movement, handling 1.513 million TEUs from 710 vessels within its first year of operation. Completion of the second phase is expected by 2028.
Published: Jan 22 2026, 4 pmeznews.inIndia's largest airline, IndiGo, reported a significant 78% drop in profit for the December 2025 quarter, earning ₹549.1 crore compared to ₹2,448.8 crore in the same period last year. The airline's parent company, InterGlobe Aviation, announced a total income of ₹24,540.6 crore, an increase from ₹22,992.8 crore a year earlier. This decline in profit comes on the heels of substantial flight disruptions experienced by IndiGo in early December, prompting the Directorate General of Civil Aviation (DGCA) to reduce the airline's winter schedule by 10% until February 10. The financial results reflect the challenges faced by the airline amid operational setbacks, despite a rise in overall income. The latest figures were disclosed in a regulatory filing on January 22, 2026.
Published: Jan 22 2026, 4 pmeznews.inIndia's electricity distribution network has achieved a significant milestone, surpassing five lakh circuit kilometres (ckm) with the capacity to handle high-voltage energy of 220 kilovolts and above, as announced by the power ministry. This achievement, realized on January 14 with the commissioning of a 628-ckm transmission line from Bhadla II to Sikar II, enhances the evacuation of renewable energy from Rajasthan's Renewable Energy Zone, allowing for an additional 1,100 MW of power. Since April 2014, the transmission network has expanded by 71.6%, adding 2.09 lakh ckm of lines and increasing transformation capacity by 876 gigavolt amperes (GVA). The inter-regional power transfer capacity now stands at 1,20,340 MW, facilitating seamless electricity transfer across regions and supporting the government's vision of 'One Nation – One Grid – One Frequency.' Future projects are expected to add 40,000 ckm of lines and further bolster renewable energy integration as India aims for 500 GW of renewable generation by 2030.
Published: Jan 22 2026, 4 pmeznews.inThe Maharashtra government has approved the establishment of a government tasar silk cocoon market in Armori, Gadchiroli district, as part of its Integrated and Sustainable Textile Policy 2023–28, with an investment of ₹3.88 crore. This initiative aims to provide tasar silk farmers with a transparent trading platform, ensuring fair prices and enhancing the silk value chain in eastern Vidarbha. The modern market complex will feature essential infrastructure, including an administrative building, water supply, sanitation, electrification, and facilities for persons with disabilities, alongside internal roads and drainage systems. The project, managed by the Directorate of Sericulture under Central Silk Board guidelines, is expected to create local employment opportunities and bolster the rural economy, ultimately promoting economic stability and sustainable incomes for tasar silk producers in the region. A government resolution has been issued to formalize this decision.
Published: Jan 22 2026, 3 pmeznews.inThe draft National Electricity Policy 2026 (NEP 2026) proposes significant reforms to power tariffs, advocating for an index-linked automatic annual revision that would see increases in power purchase costs passed on to consumers monthly. Released by the Power Ministry, the policy aims to align electricity supply with the demands of a growing economy targeting $30 trillion and energy independence. It emphasizes the need for cost-reflective tariffs to ensure the financial sustainability of the power sector, which has seen Discoms accumulate losses of approximately Rs 6.9 lakh crore. The policy calls for State Electricity Regulatory Commissions (SERCs) to ensure tariffs reflect actual costs, while also suggesting the establishment of stabilization funds to manage fluctuations in power purchase costs. Additionally, it seeks to reduce cross-subsidies and promote timely payments to enhance the financial health of the sector, ultimately aiming to restore viability and transparency in electricity pricing.
Published: Jan 22 2026, 3 pmeznews.inShamika Ravi, a member of the Economic Advisory Council to the Prime Minister, emphasized the pivotal role of small nuclear reactors in India's energy strategy during a recent event in New Delhi. Speaking to ANI, she noted that these reactors are crucial for reducing the country's heavy energy import bills and enhancing energy security as part of the broader 2047 energy framework. Ravi highlighted the government's commitment to diversifying energy sources, particularly through renewables, to ensure sustainability amid global uncertainties. She also addressed concerns regarding US tariffs, stating their limited impact on India, and underscored the importance of expanding free trade agreements. Additionally, Ravi pointed to India's proactive approach in sourcing critical minerals and the need to boost women's participation in the workforce. The recent SHANTI Bill, 2025, facilitates private-sector involvement in nuclear energy, with a budget allocation of ₹20,000 crore aimed at developing five Small Modular Reactors by 2033.
Published: Jan 22 2026, 3 pmeznews.inMoneyboxx Financial Ltd, a non-banking finance company listed on the NSE, has introduced innovative muzzle technology to uniquely identify cattle, enhancing its loan issuance process to under 15 minutes. Co-founder Deepak Aggarwal highlighted that the company, which manages a portfolio of 600,000 cattle, is the second to develop an AI-driven app for this purpose. The technology allows for precise identification of cattle breeds and lactation cycles, aiding insurance firms in reducing fraud. Moneyboxx has provided loans to 40,000 farmer families, with plans to expand its assets under management from ₹1,000 crore to ₹1,600 crore in the next fiscal year. The company is also collaborating with the Gates Foundation to refine its lending model, which assesses farmers' income potential based on cattle and land data. Additionally, Moneyboxx offers support services to borrowers, including veterinary advice and free feedstock, as it expands its operations into southern India.
Published: Jan 22 2026, 3 pmeznews.inThe European Union is poised to finalize a significant comprehensive deal with India during the upcoming visit of European Commission President Ursula von der Leyen and European Council President Antonio Costa. Speaking in the European Parliament, EU High Representative Kaja Kallas announced the advancement of a new Security and Defence Partnership, enhancing cooperation in maritime security, counterterrorism, and cyber defense, with plans to sign it at the EU-India Summit in New Delhi. The leaders will also co-chair the 16th India-EU Summit, where a new strategic agenda is expected to be adopted. Von der Leyen highlighted the nearing completion of a Free Trade Agreement, described as "the mother of all deals," which could create a market of 2 billion people and account for nearly a quarter of global GDP. The visit, from January 25 to 27, aims to strengthen economic ties and deepen collaboration between the EU and India, marking a significant step in their strategic partnership established in 2004.
Published: Jan 22 2026, 1 pm
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