Quad Launches Critical Minerals Initiative to Reduce Reliance on China
The Quad grouping—India, Australia, Japan and the United States—has launched a new Critical Minerals Initiative to strengthen and diversify global supply chains for key resources such as rare earth elements, amid concerns over China’s dominance in mining, processing and refining. The move was announced at a recent meeting of Quad foreign ministers in Washington, DC, where members reiterated cooperation on maritime security, economic resilience, emerging technologies and humanitarian assistance. Rare earths and other critical minerals are vital for electric vehicles, semiconductors and defence systems, and China’s tightening export controls and regulatory barriers have raised fears of supply disruptions, price volatility and economic coercion.
The initiative aligns with the G7 Critical Minerals Action Plan and encourages collaboration with emerging markets, private sector investment, and recycling of minerals from electronic waste to boost sustainability. India is supporting the effort through its National Critical Mineral Mission and participation in the US-led Minerals Security Partnership, focusing on lithium and rare earths for joint exploration and processing. For non-Indian companies, the programme is expected to open new sourcing and investment opportunities outside China, reduce concentration risks in manufacturing supply chains, and create alternative hubs for mineral processing and technology production, potentially reshaping procurement strategies across the EV, electronics and aerospace sectors.
Editor’s Note: The Quad—India, Australia, Japan, and the US—has launched a Critical Minerals Initiative to diversify supply chains for rare earths and other key resources, reducing reliance on China amid concerns over its export controls and dominance in mining and processing. Aligned with the G7 plan, the effort promotes collaboration with emerging markets, recycling, and private investment, with India contributing through its National Critical Mineral Mission and the US-led Minerals Security Partnership, opening new global sourcing and investment opportunities across EV, electronics, and aerospace sectors.
India and EU Conclude Historic Free Trade Agreement After Two Decades of Talks
India and the European Union on Tuesday (January 27, 2026) announced the conclusion of negotiations on a long-pending free trade agreement (FTA), under which the EU will eliminate tariffs on 99.5% of items exported from India, with most duties dropping to zero as soon as the pact comes into force. India, in return, has offered tariff concessions on 97.5% of the traded value between the two sides. The joint announcement was signed by Commerce Minister Piyush Goyal and EU Trade Commissioner Maroš Šefčovič in the presence of Prime Minister Narendra Modi and European Commission President Ursula von der Leyen. The deal, first negotiated in 2007 and revived in 2022 after years of deadlock, will now undergo legal scrubbing and ratification by the European Parliament and all 27 EU member states.
Under the agreement, over 90% of India’s exports — including textiles, apparel, leather, footwear, marine products, chemicals, gems and jewellery, toys and sports goods — will gain immediate duty-free access to the EU, boosting competitiveness for labour-intensive sectors. The EU will secure lower or zero duties on machinery, automobiles, aircraft, medical equipment, chemicals and pharmaceuticals, while sensitive areas such as dairy and certain agricultural products remain excluded on both sides. Quota-based concessions were agreed for contentious items like luxury cars and wine. Services commitments span IT, professional, business and financial sectors. For non-Indian companies, the FTA is expected to reshape sourcing and investment strategies by creating a large integrated market of nearly two billion consumers, opening new opportunities to use India as a manufacturing and export base to Europe, and reducing trade barriers for multinational firms operating across both regions.
Editor’s Note: India and the European Union have concluded a historic free trade agreement after nearly two decades of negotiations, with the EU eliminating tariffs on 99.5% of Indian exports and India offering concessions on 97.5% of traded value. The pact grants duty-free access for most Indian goods and lowers tariffs on EU machinery, automobiles, and pharmaceuticals, while reshaping global sourcing and investment strategies by creating a vast integrated market of nearly two billion consumers.
India de-licenses lower 6 GHz band to roll out next-generation Wi-Fi
India’s Department of Telecommunications (DoT) has de-licensed the lower 6 GHz spectrum band (5925–6425 MHz), paving the way for Wi-Fi 6 and Wi-Fi 7 services and significantly faster wireless connectivity. Under a January 20 notification, low-power indoor and very low-power outdoor devices can operate in this band without a licence or frequency assignment on a shared, non-interference basis. The move is expected to improve high-bandwidth applications such as gaming, 4K/8K streaming, and AR/VR, while enabling new use cases in smart factories, digital healthcare, and enterprise networks. However, the band cannot be used in land vehicles, boats, or aircraft (except above 10,000 feet), nor for drone communication and control.
The decision follows consultations led by sector regulator TRAI, during which telecom operators opposed opening the band for unlicensed use, arguing it should be auctioned for mobile services, while technology firms and industry bodies backed de-licensing to meet rising data demand and support India’s electronics manufacturing ecosystem. Experts say the policy gives clarity for deploying data-intensive technologies such as AI, AR and VR in dense indoor environments and smart campuses. For non-Indian companies, the reform is significant as it aligns India with global trends in opening the 6 GHz band for Wi-Fi, enabling device makers, chip manufacturers and platform providers to launch globally compatible products in the Indian market and integrate India more closely into international Wi-Fi standards and supply chains.
Editor’s Note: India’s Department of Telecommunications has de-licensed the lower 6 GHz band (5925–6425 MHz), enabling Wi-Fi 6 and Wi-Fi 7 services for faster connectivity and supporting applications like gaming, streaming, AR/VR, smart factories, and digital healthcare. Despite telecom operators opposing unlicensed use, the reform aligns India with global trends, boosts electronics manufacturing, and opens opportunities for device makers and platform providers to launch globally compatible products in the Indian market.
India to revamp semiconductor DLI scheme with equity-linked incentives and tighter IP control
The Indian government is reworking its Design Linked Incentive (DLI) scheme for semiconductor companies, shifting away from grant-heavy funding towards support tied to equity, debt or ownership of intellectual property, according to a report by The Economic Times. Under the proposed DLI 2.0 framework, incentives will no longer be limited to reimbursements, with policymakers considering instruments such as equity participation, debt financing and hybrid models including compulsory convertible debentures. The redesign aims to improve accountability and ensure public funds generate strategic and financial returns, after concerns over delayed reimbursements and audit scrutiny under DLI 1.0, where incentives were largely disbursed as grants without any government ownership or upside.
The revised scheme is also expected to prioritise strategic outcomes, particularly retaining semiconductor IP developed with public support within India, and may expand eligibility beyond startups and MSMEs to include larger, system-level and module-level chip designs with stronger commercial potential. While DLI 2.0 has received in-principle approval, key decisions on funding structures and ownership models are still under discussion and will require Cabinet clearance, with timing linked to the Union Budget and political calendar. For non-Indian companies, the shift is significant as it signals stricter conditions around IP and ownership for projects backed by Indian public funds, while also opening opportunities for global design firms and technology partners to participate in larger, more commercially oriented chip design programmes aligned with India’s semiconductor strategy.
Editor’s Note: India is revamping its semiconductor Design Linked Incentive (DLI) scheme into a DLI 2.0 framework, shifting from grant-heavy funding to equity, debt, and hybrid models to improve accountability and ensure public funds yield strategic and financial returns. The revised scheme will emphasize retaining semiconductor IP within India, expand eligibility to larger chip design projects, and impose stricter ownership conditions, while creating new opportunities for global firms to participate in commercially oriented design programs aligned with India’s semiconductor strategy.
Tata Group to invest $11 billion in ‘Innovation City’ near Navi Mumbai airport
The Tata Group is set to invest about $11 billion to develop a large-scale “Innovation City” near the upcoming Navi Mumbai International Airport, aiming to position India as a global hub for artificial intelligence and semiconductor services. Maharashtra Chief Minister Devendra Fadnavis said international investors are showing strong interest in the project, which will include a data centre and advanced digital infrastructure. Maharashtra, which accounts for over 10 per cent of India’s GDP and is home to major corporate and financial institutions, is pursuing the project as part of a broader push to upgrade Mumbai’s infrastructure and strengthen high-technology industries amid concerns over unemployment.
Located next to the Adani Group-developed Navi Mumbai airport, the proposed hub is expected to benefit from direct global connectivity and support high-value technology services, aligning with a surge in global investment in AI and cloud infrastructure by companies such as Microsoft, Alphabet and Amazon. Consultancy McKinsey estimates global data centre demand could more than triple by 2030 to 219 gigawatts annually. For non-Indian companies, the project is relevant as it signals a growing concentration of AI, semiconductor design and data centre capacity in India, creating potential opportunities for foreign technology firms, chip designers and cloud providers to expand operations, form partnerships and access a large, fast-growing digital market.
Editor’s Note: The Tata Group will invest $11 billion to build an “Innovation City” near Navi Mumbai International Airport, creating a hub for AI, semiconductor services, and advanced digital infrastructure as part of Maharashtra’s push to strengthen high-tech industries. Positioned next to the Adani-developed airport, the project offers global connectivity and signals rising opportunities for foreign technology firms, chip designers, and cloud providers to tap into India’s fast-growing digital market.
Asian airports tighten health screening after Nipah virus outbreak in eastern India
Airports across parts of Asia have reintroduced Covid-style health checks following an outbreak of the Nipah virus in India’s West Bengal, according to The Independent. Thailand, Nepal and Taiwan have stepped up screening of travellers after five cases were confirmed in the state, where around 100 people have been quarantined. The virus, which can spread from animals such as bats and pigs to humans and in some cases through close personal contact, was detected in hospital staff, including a doctor and a nurse from the same district. In Thailand, authorities have increased checks at major airports including Suvarnabhumi, Don Mueang and Phuket for passengers arriving from West Bengal, screening for fever and issuing health advisory cards, while officials said no cases have so far been recorded in the country.
Nepal has intensified health checks at Kathmandu’s international airport and key land border crossings with India, with screening measures aimed at preventing cross-border transmission. Taiwan is considering classifying Nipah infection as a top-level notifiable disease, which would trigger mandatory reporting and stricter control measures, and said travel alerts would be reviewed as the situation evolves. The World Health Organisation lists Nipah as a priority pathogen because of its epidemic potential, with past outbreaks showing fatality rates of 40 to 75 per cent. For non-Indian companies, the renewed screening is significant as it could affect regional travel, logistics and workforce mobility, particularly for firms with operations or supply chains linked to eastern India and Southeast Asia, while also underlining the importance of health surveillance in business continuity planning.
Editor’s Note: Airports in Thailand, Nepal, and Taiwan have tightened health screening after a Nipah virus outbreak in India’s West Bengal, where five cases and around 100 quarantines have been reported. The World Health Organisation lists Nipah as a priority pathogen due to high fatality rates, and the renewed checks could impact regional travel, logistics, and workforce mobility, highlighting the importance of health surveillance for business continuity.
Why India’s deep-tech startups struggle to scale despite a booming startup ecosystem
India’s deep-tech startups face structural hurdles that make scaling far harder than for consumer-focused ventures, despite the country’s growing reputation as a global startup hub. Experts point to limited access to risk-tolerant capital, long research and development cycles, weak commercialization pathways, regulatory and policy uncertainty, and questions over domestic market readiness for adoption. These startups operate in capital- and knowledge-intensive fields such as semiconductor design, artificial intelligence, robotics, quantum computing, biotechnology and advanced materials, where returns are slower and failure rates higher than in app-based or platform businesses.
The challenges came into sharper focus in 2025 after Union Commerce and Industry Minister Piyush Goyal criticised the dominance of consumer services like food and grocery delivery in India’s startup landscape, urging greater emphasis on deep-technology innovation. While India has produced global-scale unicorns in fintech, e-commerce and SaaS, deep-tech ventures remain constrained by gaps in patient funding, industry-academia collaboration and demand from large domestic customers. Analysts say without stronger policy clarity, better technology transfer mechanisms and greater willingness among investors to back long-gestation ideas, India risks falling short of its ambition to build globally competitive deep-tech champions.
Editor’s Note: India’s deep-tech startups struggle to scale due to limited risk-tolerant capital, long R&D cycles, weak commercialization pathways, and regulatory uncertainty, despite operating in critical fields like semiconductors, AI, robotics, and biotechnology. Analysts warn that without clearer policies, stronger industry-academia collaboration, and patient funding, India may miss its goal of building globally competitive deep-tech champions.