India: Government, Public Sector

On 5 June 2026, the Government of India promulgated the Income-tax (Amendment) Ordinance, 2026, exempting specified foreign investors from taxation on both interest income and capital gains arising from investments in Government Securities (“G-Secs”), with retrospective effect from 1 April 2026.

The India Oman CEPA has come into force from 1st June 2026. The agreement was signed by both parties on 18th December 2025. Pursuant to the enforcement, Oman has offered zero duty on 98.08% of its tariff lines and India is set to offer duty reduction on 77.79% of its tariff lines.

India’s infrastructure sector continues to attract unprecedented international attention. From renewable energy parks and airports to data centres, logistics corridors, urban mobility systems and green hydrogen projects, global institutional investors are increasingly viewing Indian infrastructure as a long-term strategic asset class rather than merely an emerging market opportunity.

In a decision on the scope of writ jurisdiction in the context of arbitration proceedings, the Supreme Court of India (“Supreme Court”), in M/s Tarini Prasad Mohanty vs. M/s Sunflag Iron and Steel Company Limited,1 has held that the exercise of writ jurisdiction under Articles 2262 and 2273 of the Constitution of India (“Constitution”) to set aside an order passed under Section 164 of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”) was not justified, particularly where the arbitrator was seized of the arbitration proceedings.

The Supreme Court of India addresses a critical case involving wrongful attribution of criminal antecedents to a citizen during bail proceedings, examining the State's accountability when false records impact fundamental rights. The judgment scrutinizes the government's explanation of a "computer error" and establishes important precedents for protecting personal liberty under Article 21 of the Constitution.

There is a familiar discomfort in Indian arbitration practice. An arbitral tribunal passes an interlocutory order. One party believes the order is not merely wrong, but seriously prejudicial. The instinctive reaction is to look for an immediate remedy. The Arbitration and Conciliation Act, 1996, however, does not always provide one.

The Department for Promotion of Industry and Internal Trade (“DPIIT”), through its revised Standard Operating Procedure (“SOP”) dated 4 May 2026 for processing Foreign Direct Investment (“FDI”) proposals, has introduced what appears at first glance to be a procedural reform.

In the wake of the COVID-19 pandemic, the Department for Promotion of Industry and Internal Trade (“DPIIT”) had issued Press Note 3 of 2020 (“PN3”), mandating prior Government approval for investments originating from entities or citizens of countries sharing land borders with India (“LBCs”), or where the beneficial owner of the investment was situated in or was a citizen of such countries.

This edition of Defence Dispatch examines three pivotal developments from April 2026: India and Germany's ten-year defence industrial cooperation roadmap that advances the P-75I submarine deal, the newly published India-Russia RELOS agreement allowing unprecedented foreign military presence on Indian soil, and South Korea's state visit outcomes that shift the K9 Vajra partnership toward co-development and joint design of advanced military systems.

On June 3, 2026, the Supreme Court of India's Artificial Intelligence Committee published for public consultation its draft Regulations for Use of Artificial Intelligence in Courts, 2026 (“Draft Regulations”).

The regulatory framework governing environmental governance in India has undergone significant evolution since the enactment of the Environment (Protection) Act, 1986. At the heart of this framework lies...

India’s renewable energy market has now entered a more structured regulatory phase with the issuance of the Central Electricity Regulatory Commission (“CERC”) Guidelines for Virtual Power Purchase Agreements (“VPPAs”) dated 24 December 2025 and the subsequent Statement of Reasons issued on 27 April 2026.