Testing India’s subsidies
Semiconductors, AI compute, minerals, green hydrogen, small hydro and factory power: what each subsidy should be made to deliver.
23 Jan 2026
Cheaper power for Indian factories needs a credible plan to fund subsidies
The draft electricity policy would ease cross-subsidies for manufacturers. The cost must be covered by real distribution savings, explicit state funding or a change in who pays.
20 Feb 2026
India’s AI compute subsidy should be judged by who gets to use it
The India AI Impact Summit put GPU capacity in the spotlight. Subsidised compute earns its cost when it gives researchers and smaller firms access they could not otherwise buy.
20 Mar 2026
India’s small hydro subsidy should pay for dependable power
The Cabinet plans to support about 1,500 MW of small hydro. The public return depends on when plants deliver electricity, the alternatives available to remote grids and the health of the rivers involved.
19 Jun 2026
India’s green hydrogen certificate is only as credible as its power records
India’s new certification portal can make clean hydrogen easier to buy. Its value depends on verifiable power use, credible emissions records and demand from industrial buyers.
24 Jul 2026
India’s semiconductor subsidies should buy qualified suppliers and repeat orders
Semicon 2.0 widens support beyond fabs. Its payoff depends on whether Indian suppliers can qualify, win repeat orders and keep production running.
6 Nov 2026
India’s mineral processing subsidy should buy supply that works in a disruption
India will subsidise four lithium and nickel processing plants. Their strategic value depends on feedstock diversification, commercial quality and delivery under stress.
11 Nov 2026
A fixed DAP price and late subsidy rates are steering farmers towards India’s scarcest fertiliser
The ₹62,370 crore rabi package keeps a bag of DAP at ₹1,350. Because that guarantee covers only DAP, and the rates arrived six weeks into the season, it also steers farmers towards the fertiliser India finds hardest to import.