India is boosting its industrial infrastructure by establishing new zones and launching facilities, including semiconductor manufacturing units. Economic growth forecasts by global financial institutions appear to remain steady. There was a welcome move to expand the Supreme Court’s capacity by increasing the number of judges. Regulatory focus has gained momentum to ensure compliance is enforced, while the new foreign investment approval mechanism seeks to simplify existing processes and provide defined timelines for approvals.
United Nations Report – The World Economic Situation and Prospects as of mid-2026 updates the World Economic Situation and Prospects 2026 report released in January 2026 (as reported by Asia Law Portal). The Global Economic Monitoring Branch prepared the report in the Economic Analysis and Policy Division of the United Nations Department of Economic and Social Affairs. As the report notes, global GDP growth is now forecast at 2.5 per cent in 2026, 0.2 percentage points below the January projection and well below pre-pandemic norms. A modest recovery is projected at 2.8 per cent in 2027. Solid labour markets, resilient consumer demand, and AI-driven trade and investment in select economies are expected to provide some support. Still, the downgrade underscores a further weakening of an already subdued global outlook. India’s economy is forecast to grow by 6.4 per cent in 2026 and 6.6 per cent in 2027, a downward revision of 0.2 and 0.1 percentage points from the January forecast, supported by resilient private consumption and strong services exports. India’s diversified energy sourcing and structural buffers, including its refining infrastructure, ample foreign exchange reserves, and fiscal space to manage fuel prices, may limit the direct pass-through of higher crude prices. In India, inflation is forecast at 4.9 per cent, within the Reserve Bank of India’s target range, with the policy rate held at 5.25 per cent amid rising inflation risks.
New Special Economic Zones – The Government has notified two new Special Economic Zones (SEZs) in the Union Territory of Puducherry. The Board approved the proposals for SEZ approvals under the Department of Commerce during its 137th meeting, held on 27 February, 2026. The projects mark a decisive step in the Government’s continued push to strengthen the country’s industrial base, expand exports, and deepen self-reliance in strategic sectors. These approvals constitute a major milestone for Puducherry’s industrial and export-led growth strategy and are expected to expand opportunities for investment, manufacturing, and high-quality employment. Of these two SEZs, one IT/ITES SEZ will be developed by M/S Oulgaret Municipality in Thattanchavady village, Oulgaret Taluk. This will be the first SEZ in India to be developed by an urban local body, namely a municipality. The other, a multi-sector SEZ, will be developed by M/S Pondicherry Industrial Promotion Development and Investment Corporation (PIPDIC) in Karasur village, Villianur Taluk. These SEZ notifications reflect a broader strategy to strengthen India’s industrial, technological, manufacturing, and services ecosystem through diversified SEZ-led growth, thereby enhancing resilience and scale to boost the economy, attract investment, and generate employment.
Supreme Court Judges – The strength of the Supreme Court was recently increased by an ordinance promulgated by the President of India. The Supreme Court (Number of Judges) Amendment Ordinance, 2026, was notified to increase the number of judges in the Supreme Court from 33 to 37. The ordinance was issued because Parliament was not in session, and the President was satisfied that circumstances existed that rendered it necessary for her to take immediate action. The ordinance amended the Supreme Court (Number of Judges) Act 1956, which had originally been enacted to increase the number of Supreme Court judges from 7, as provided under Article 124 of the Constitution, to 10. The Act has been amended six times to increase the original strength of 10 to 13, 17, 25, 30, 33, and now 37.
SOP for FDI – The Government of India has issued a Standard Operating Procedure (SOP) for processing Foreign Direct Investment (FDI) proposals. The SOP aims to make the FDI application filing process completely paperless. Therefore, the applicant will not be required to file physical copies of any documents required to process FDI proposals. A step-by-step process has been outlined, along with the required documentation and departments involved. Timelines for each step have been provided, with an overall time limit of 12 weeks for the competent authority’s approval of proposals under the FDI policy.
RBI’s Regulatory Focus – The Reserve Bank of India recently said its regulatory agenda for FY27 would be anchored in two priorities: customer protection and strengthening the credit ecosystem. Further, its supervisory agenda would focus on the early identification of emerging risks, strengthening root cause analysis, and enhancing consistency in supervisory practices across regulated entities. On customer protection, the RBI said its focus is on strengthening the KYC (Know Your Customer) framework, extending video-based identification to NRI (Non-Resident Indian) customers, and reviewing the responsible business conduct directions, according to its latest annual report. On the credit side, a review of directions on interest rates, credit risk management, and market mechanisms for transfer and distribution of credit risk has been proposed, along with a new framework for shared loan arrangements. Further, to enable the boards of banks to use their time effectively, and to facilitate more focused and qualitative engagement on matters of strategy and risk governance, the Reserve Bank would rationalise the requirements arising from its instructions for placing matters before the boards.
