Policy Pulse — Modi — 10 Jul 2026

🇮🇳 India's Semiconductor Mission: From Vision to Reality — $18B, 10 Projects, Commercial Production Begins

PM Modi's Semicon India programme is transitioning from vision to execution. Key milestones achieved as of mid-2026:

• 10 semiconductor projects attracting over $18 billion (₹1.5 lakh crore) in investment
• Commercial chip packaging has begun at Sanand (Gujarat) — first commercial output from India's semiconductor ecosystem
• 5 additional projects cleared in 2025, following the first plant approved in 2023
• Gujarat to build SAMARTH hub at IIT Gandhinagar with $19.96M for semiconductor R&D and talent development
• Target: Top 6 semiconductor manufacturing nations with five plants by end-2026

Union Minister Ashwini Vaishnaw has set the target of India becoming a top 6 semiconductor producer. The India Semiconductor Mission (ISM) launched with ₹76,000 Cr incentive package is driving this transformation.

IMPORTANT: PIB / official sources name system schemes and targets but do NOT name specific companies. The following stock mappings are inferred based on announced projects, known vendor relationships, and industry participation in the Semicon India programme.

Stocks to Watch (India Only)

Confidence: 3/5 — Official PIB announcements support the macro picture, but no named listed company contracts. Inferred from industry participation.

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🇮🇳 India's Defence Production and Exports Hit Record Highs

Ministry of Defence data shows unprecedented momentum in India's defence industrial base:

• Annual defence production: ₹1.78 lakh crore (FY26 — all-time high)
• Defence exports: Record ₹38,424 Cr ($4.6B) — supplying 80+ countries
• Target: ₹50,000 Cr ($6B) in defence exports by 2029-30
• ₹52,000 Cr ($5B+) defence package approved via DAC including Akash Tarang, MPATGM, MRSAM, V-SHORADS, kamikaze drones, HAPS
• Defence Secretary confirmed: Ministry plans to sign ₹2 lakh crore in contracts in FY26
• India's defence procurement push accelerated post-Operation Sindoor

Key systems approved by DAC:

• Akash Tarang — anti-drone system
• MPATGM — anti-tank missiles
• MRSAM & V-SHORADS — air defence systems
• Jet-powered kamikaze drones for the Army
• Multi Influence Ground Mines and Naval Shipborne UAVs for Navy
• High-Altitude Pseudo Satellites (HAPS) for IAF surveillance

IMPORTANT: The DAC approval names systems and capabilities, not listed company contracts. The following stock mappings are inferred based on historical vendor relationships, proven manufacturing capabilities, and past contract awards.

Stocks to Watch (India Only)

Confidence: 4/5 — Official MoD data confirms production/exports numbers. DAC approvals are confirmed. Company inferences based on known industry participation in these specific platforms.

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🇮🇳 NBCC Reports ₹1.2L Cr Order Book — Fresh Orders for Educational & Sports Infrastructure

NBCC (India) Limited has disclosed a total order book of approximately ₹1.2 lakh crore, with projects worth ₹38,000 Cr under active execution. The company expects ₹50,000 Cr fresh inflows in the near term, including ₹20,000 Cr in the current quarter (Q2 FY27).

New orders include:

• ₹132.28 Cr in fresh orders for educational and sports infrastructure projects in Assam and Odisha
• As a Navratna CPSE under the Ministry of Housing and Urban Affairs, NBCC executes government redevelopment, education, healthcare, defence, and urban infrastructure projects

Stocks to Watch (India Only)

Confidence: 5/5 — Direct company disclosure via stock exchange filing.

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🇮🇳 Modi-Indonesia BrahMos Deal — Strategic Defence Export Win

PM Modi's three-day visit to Indonesia resulted in over a dozen bilateral agreements, headlined by:

• BrahMos supersonic cruise missile deal — Indonesia to acquire the Indian-Russian joint venture missile system
• Joint development of Sabang Port
• Cooperation on ASTRA air-to-air missile systems
• Partnership on Indonesia-specific EVM solutions

This came a day after China test-launched a long-range ballistic missile, underscoring the strategic timing. India's defence exports reaching 80+ countries supports the narrative of India as a defence export hub.

Stocks to Watch (India Only)

Confidence: 3/5 — Confirmed diplomatic deal, but specific contract values and timelines not yet disclosed for listed company participation.

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🇮🇳 India-Latin America Trade Diversification

The Department of Commerce highlighted strong export growth across key sectors:

• Pharmaceuticals: $1.20B — largest export segment to Latin America
• Automobiles: Motorcycles ($1.12B), passenger vehicles ($871M), auto components
• Vaccine exports: $1,312M in Apr-Jan FY26 (up from $936M in Apr-Jan FY25)
• India-Egypt exports also reached a new milestone in FY26

Stocks to Watch (India Only)

Confidence: 3/5 — Official Commerce Dept data confirms the macro trend. Stock-level benefit is inferred from known export patterns.

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🇮🇳 Commerce Ministry Questions PLI Extension Despite Industry Exceeding Targets

The Commerce Ministry held consultations on extending the smartphone PLI scheme. The Ministry questioned what made the scheme deserving of more time, prompting the industry to highlight:

• PLI has exceeded targets
• Value addition has quadrupled
• Industry argues the scheme created genuine manufacturing depth

Stocks to Watch (India Only)

Confidence: 3/5 — Still under consultation; outcome not final. Directionally positive for PLI-linked EMS players.

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🇮🇳 DPIIT Issues Footwear Quality Control Order — Risk-Based Exemption for R&D

DPIIT announced on July 9 new Guidelines for Transition Facilitation under the Footwear Quality Control Order 2026, introducing:

• Risk-based exemption mechanism to promote technology and R&D
• Permits import of up to 4,500 footwear samples annually for R&D
• Aims to balance quality control with ease of doing business

Stocks to Watch (India Only)

Confidence: 2/5 — Minor regulatory change; modest incremental positive for organized footwear players.