Now, India is increasingly counting the cost of the Iran war, which economists say will keep mounting if the deadlock between the U.S. and Iran remains unresolved and the blockage of oil supplies continues.

As the world’s third-largest oil importer and consumer, India ships in about 90% of its oil, making its economy one of the most-exposed to the war and the prolonged war-related disruptions, which include the effective blockade of the Strait of Hormuz through which a fifth of global oil and gas transit.

While India has announced a flurry of measures to contain the impact on the rupee and foreign exchange reserves, the latest of which were from the Reserve Bank of India on Friday, analysts say the broader drag on economic growth, inflation and government finances is set to increase so long as oil prices remain elevated.

“India is set for a series of supply shocks,” Michael Langham, emerging markets economist at Aberdeen Investments, said.

Apart from pressure on oil prices, the country also faces supply disruptions to fertiliser as a result of the Iran war, which will impact key crops like wheat when farmers are already bracing for an El Nino weather phenomenon that often portends drought.

“This will all drag on India’s growth outlook, yet the ability of the RBI to look through the energy price shock from the Strait of Hormuz will be increasingly difficult given the overlapping nature of these supply shocks,” Langham said.

India ramps up defence of faltering rupee after holding fire on rates

At the end of last year, India’s central bank governor, Sanjay Malhotra, talked about a “rare Goldilocks” phase for the economy as it headed into 2026. Inflation levels were falling and growth remained relatively strong.

The Iran war upended that outlook.

India’s oil-and-gas import bill jumped 53% in April from March, prompting forecasts for the balance of payments (BoP) deficit — essentially money coming into the economy netted off against money going out — to balloon.

HSBC says that Friday’s series of steps may do a lot to limit the currency damage. Until Friday, it had expected India’s BoP deficit to swell to about $65 billion in 2026-27, but now expects the measures to improve the balance by about $30 billion. In 2025-26, India’s BoP deficit was at $25.2 billion or 0.6% of GDP.

India is also curbing gold imports, urging citizens to limit foreign travel and calling for more use of public transport to reduce oil demand.

“Difficult position”

But the macro picture is more challenging.

Benchmark international oil prices surged after the war began on Feb. 28, climbing to nearly $120 per barrel. Prices have eased, but they remain about 30% higher overall, while gas prices have risen 75% over the same period.

India’s GDP growth estimated at 7.8% in January-March

As a result, the central bank sees inflation averaging 5.1% in the financial year to the end of March 2027, up from a 3.48% reading in April, and economic growth slipping to 6.6% from 7.7% in the previous year.

While the RBI kept rates on hold last week, interest rate swap markets are pricing in at least 25 basis points of rate hikes over the next three months and more than 75 basis points over the next year.

“India continues to face deeper structural challenges which has weighed on foreign direct investment, employment, manufacturing expansion, consumption, and nominal GDP growth,” said Sat Duhra, portfolio manager at Asia ex-Japan equity team at Janus Henderson Investors.

Duhra said the energy shock will undermine growth and pressure government finances.

“Any move to rein in public-sector capex to stabilize conditions would risk further slowing growth,” he said. “This leaves policymakers in a difficult position.”

Strong oil demand

India delayed raising retail fuel prices as import costs mounted. Petrol and diesel are up less than 10% since then, compared with 50% or more in some other oil-importing countries in Asia.

Petrol and diesel prices are deregulated, but the government exerts significant influence as the majority shareholder of the key retail companies.

Elsewhere, high prices have reduced demand and helped balance undersupplied markets.

The government has said it will not compensate fuel retailers for losses, a strategy analysts say will come at a cost for the government, such as through reduced dividends, and so cut its financial firepower to handle the crisis.

The government’s fertiliser subsidy is likely to jump 20% in 2026/27, a government official said. Fertiliser is vital for India’s agrarian economy, which supports nearly half the population, but may be more so this year given the risk of drought owing to El Nino.

The government also cut gasoline and gasoil taxes, forgoing 140-billion-rupees in monthly revenues.

The government is targeting a fiscal deficit of 4.3% of GDP this financial year, but a Reuters poll forecast it would swell to 4.7% and some economists see it going as high as 5%.

India-based credit rating agency Crisil expects further small price increases in retail oil prices, which will have a wider impact.

“The broader effect will reverberate across the economy through higher-transport costs, pushing up both food and core inflation,” it said in a report.

Inflation has remained below the RBI’s 4% target for 15 consecutive months. But that benign trend is unlikely to continue, with state-owned fuel retailers raising fuel prices four times in May ​alone, pushing up transport costs, while food inflation continued to rise from last year’s low levels.

But, with inflation still within target and economic growth remaining robust, the central bank kept key interest rates unchanged last week, ⁠as expected. RBI Governor Sanjay Malhotra said underlying inflation pressures remained benign, although second-round effects warranted vigilance.

Vegetables and transport drive ​inflation rise

The June 3-8 poll of 38 economists forecast inflation, measured by the annual change in the consumer price index (CPI), rose ​to 4.0% in May from 3.48% in April.

“May ’26 CPI likely crossed the 4% threshold … driven primarily by vegetables and transport inflation,” said Kanika Pasricha, chief economic adviser at Union Bank of India.

Also read: India says retail inflation may accelerate on weak monsoon, fuel price rise

“Persistence of elevated temperatures across several regions and war-led constraints have adversely impacted the supply of commodities. ​Vegetable prices have rebounded in the ongoing summer months, coupled with the severe heatwave, all segments of food inflation likely ​clocked positive month-on-month momentum.”

Union Bank of India estimated transport inflation likely jumped to 4.15% in May from -0.01% in April, lifting its contribution to ‌headline inflation ⁠to 36 basis points from nearly zero, reflecting the pass-through of higher fuel prices.

Rising wholesale prices gradually feed through

While headline inflation in April came in well below expectations, wholesale price inflation, opens new tab accelerated to a 3-1/2-year high of 8.3%. The survey showed wholesale inflation likely rose further to 9.05% in May. Economists expect those higher input costs to gradually feed through to consumer prices.

The central ​bank raised its inflation forecasts ​to 5.1% for this fiscal ⁠year, up from its earlier estimate of 4.6%.

“The impact of the war should start showing up (in) the May print,” said Sakshi Gupta, principal economist at HDFC Bank, who added the pass-through ​from wholesale to consumer prices typically works with a lag.

Also read: India’s wholesale inflation quickens to 3-1/2-year high of 8.3% as energy costs soar

“So far, inflation numbers have come ​in lower than ⁠expected because I think there was very limited pass-through and also lower gold prices were kind of pushing down the inflation print.”

India’s relatively subdued inflation has also been supported by softer-than-usual food price increases. However, economists warn that the tailwind may be fading as ⁠rising temperatures ​begin to push up vegetable prices.

The India Meteorological Department has warned this ​year’s monsoon could be the weakest in 11 years.

Core inflation, which excludes volatile food and fuel prices, is expected at 3.80% in May. India does not publish ​official core inflation data.

Strong winds moved ground equipment into two of the planes and debris struck a third, the Directorate General of Civil Aviation said.

Also read: IndiGo, Air India seek government support during Iran crisis, sources say

Air India did not immediately respond to a request for comment.

The U.S. and India reached an initial understanding on a trade deal in February, but negotiations slowed after U.S. President Donald Trump’s sweeping tariff measures were struck down by the U.S. Supreme Court.

The U.S. has since proposed an additional tariff of 12.5% on imports from India, and other countries, due to what Washington says is these countries’ use of forced labour. It is also looking at imposing a separate tariff on India, claiming India has excess capacity in industries such as textiles and is exporting too much to the United States, damaging U.S. industry.

“Once we have that tariff, we can finalise a trade deal with the U.S. But obviously the rate has to be competitive with direct competitors,” the Indian trade official, who was speaking on condition of anonymity, told reporters.

India would also seek an assurance from the U.S. that it will not be subjected to additional tariffs in future after the deal, the official said.

The official did not wish to be named as talks between the two nations over the deal are confidential. India’s trade ministry did not immediately respond to an e-mailed request for comment.

Bilateral trade talks gathered pace last week as a U.S. delegation led by Assistant U.S. Trade Representative for South and Central Asia Brendan Lynch held three days of talks with Indian trade officials in New Delhi.

Last week, India’s trade minister Piyush Goyal said the two sides were moving swiftly toward finalising the first tranche of a bilateral trade agreement that could be concluded by mid-July.

The Madagascar-flagged vessel was not carrying cargo, Opesh Kumar Sharma, a director in the federal port and shipping ministry, told a press conference.

“All Indian seafarers are presently safe. We are coordinating with the Ministry of External Affairs, our Indian missions abroad, the Indian Navy, and the Ministry of Defence to ensure their safety,” Sharma said.

He said the cause of the fire, which hit the vessel at 1.30 p.m. local time, was not immediately known.

Abhijeet Dipke, 30, who has lived in the United States for the past two years and had not previously travelled to India since forming the movement, carried a copy of India’s constitution as he left New Delhi’s international airport for the protest site, greeted by hundreds of supporters chanting his name.

The group, which has amassed over 22 million Instagram followers since launching in mid-May, is the largest online expression of dissent against the Hindu nationalist Modi’s 12-year rule, fuelled by persistently high youth unemployment.

Anger over exam paper leaks

A few hundred protesters gathered near Jantar Mantar in central New Delhi as police barricaded some of the surrounding roads. The protesters shouted slogans demanding the resignation of Education Minister Dharmendra Pradhan over recurring leaks of examination papers and errors in marking that have threatened to derail the careers of millions of students.

Hundreds of thousands of students have joined the movement in just a few days, Dipke said at the protest site. “Cockroach Janta Party is not a planned party. This is a voice of those students that are angry with the government,” he said.

Modi’s government has blocked the movement’s X account in the country, a move the group has challenged in a Delhi court.

Senior cabinet minister Kiren Rijiju has accused the group of seeking followers from arch-enemy Pakistan and the “anti-India gang”, a slur used by the ruling Bharatiya Janata Party against those it sees as unpatriotic.

Dipke has publicly shared data showing about 95% of followers of the movement’s Instagram account are based in India, followed by countries such as the United States, home to large groups of overseas Indians.

Political analysts say the group’s popularity has begun to dent Modi’s image despite his party’s recent victories in key state elections. Frustration among many Indians has deepened as rising fuel prices and gas shortages brought by the Iran war squeeze household budgets.

India has nearly 400 million people aged 15 to 29, and generating non-farm jobs for them remains one of its biggest challenges, despite rapid growth. The urban youth jobless rate was nearly 14% in April. Many educated young people are also stuck in low-paid or insecure jobs that do not match their skills, economists say.

“This movement will go nationwide,” Dipke said on Saturday.

Abhijeet Dipke, 30, who has lived in the United States for the past two years, had said his family and friends feared he could be arrested on his return to India.

Dozens of police officers gathered near Jantar Mantar in central New Delhi on Saturday, barricading some of the surrounding roads as protesters shouted slogans demanding the resignation of Education Minister Dharmendra Pradhan.

India’s viral ‘Cockroach’ party founder plans street protest

Modi’s government has blocked the movement’s X account in the country, a move the Cockroach Janta Party has challenged in a Delhi court. Senior cabinet minister Kiren Rijiju has accused the group of seeking followers from Pakistan and the “anti-India gang”.

The group, which has amassed roughly 22 million Instagram followers since launching in mid-May, is the largest online expression of dissent against the Hindu nationalist Modi’s 12-year-old rule, fuelled by persistently high youth unemployment and recurring leaks of examination papers that threaten to derail the careers of millions of students.

Political analysts say the group’s popularity has begun to dent Modi’s image despite his party’s recent victories in key state elections, even as wider frustration grows over rising fuel prices and gas shortages brought by the Iran war.

Police used loudspeakers to direct people to Saturday’s designated protest site.

Founder of viral Indian Gen Z account alleges crackdown, threats

“This is a peaceful movement for the youth of the nation,” said movement spokesperson Ashutosh Ranka. Dipke is “ready for a long and big day in India’s politics”, Ranka said.

India has nearly 400 million people aged 15 to 29, and generating non-farm jobs for them remains one of its biggest challenges despite rapid growth. The urban youth jobless rate was nearly 14% in April. Many educated young people are also stuck in low-paid or insecure jobs that do not match their skills, economists say.

The decision, announced through an executive order as Parliament is not in session, is aimed at attracting more stable foreign capital as the rupee has weakened over 5% this year amid elevated oil prices and equity outflows.

Bond markets and the rupee were little changed after the announcement, which had been expected.

The Income-tax (Amendment) Ordinance, 2026, promulgated by President Droupadi Murmu, amends Schedule IV of the Income-tax Act, 2025, to add new categories of exempt income linked to investments in government bonds.

Foreign investors pivot to short India debt ahead of policy turn

Under the changes, interest earned on government securities and capital gains from their sale, exchange or transfer will be exempt from tax for specified entities, subject to conditions including the furnishing of prescribed information to tax authorities.

The exemption will take effect from April 1, 2026, the government statement said.

Foreign investors are subject to a 12.5% long-term capital gains tax on listed shares and bonds held for more than 12 months, and a 20% withholding tax on interest earned from government bonds.

Analysts said the exemption could improve post-tax returns for overseas investors and support greater participation in Indian government securities, helping broaden the investor base and cushion external pressures.

The U.S. and India reached an initial understanding on a trade deal in February, but negotiations slowed after President Donald Trump’s sweeping tariff measures were struck down by the U.S. Supreme Court.

They gathered pace once more in meetings in New Delhi this week. However, on Wednesday the U.S. proposed an additional tariff of 12.5% on imports from India, saying it was among 60 economies that had failed to curb imports made with forced labour.

“We had a full team of officials from different divisions of trade from the U.S. in Delhi,” Goyal said.

India, U.S. near trade pact; tariff terms hinge on Section 301 relief, source says

Both sides were “fast moving towards closing all the open ends” of the proposed deal, he said.

The initial tranche of the agreement is expected to give India preferential trade access over competitors. “By sometime in the middle of next month or so, we should be in a position to execute a very vibrant first tranche,” Goyal said.

He said a higher-level U.S. delegation is likely to visit India later this month.

New Delhi was the second-largest importer of Venezuelan oil in May, with purchases of 427,000 barrels per day, Reuters had reported, and India on Friday also said the South American nation was among its largest crude oil suppliers in April and May.

Rodriguez, during the talks to discuss opportunities for strengthening the two countries’ energy partnership, also invited an Indian energy delegation to visit and explore opportunities in her country’s energy sector, India’s oil ministry said in a statement on Friday.

“He (Puri) reaffirmed India’s strong support for Venezuela’s energy reconstruction, adding that Indian companies are ready to deepen their presence in Venezuela,” the ministry said in a statement.

India sees Venezuelan oil ‘opportunity’ as Rodriguez meets Modi

“Acknowledging India as a reliable partner of Venezuela, the acting president welcomed Indian companies to actively participate in Venezuela’s reformed oil and gas sector,” it added.

Rodriguez, who is on her first visit to India in her current role, has already held talks with Indian Prime Minister Narendra Modi, which focused on co-operation in upstream and downstream energy projects.

She is also expected to meet top Indian energy industry leaders in financial capital Mumbai and visit oil refining facilities in the country before her visit concludes on June 7.

New Delhi said on Thursday that Venezuela sees it as a preferred partner in the energy sector, and expressed hope the countries will move forward to “long-term secure supplies” rather than spot buying.

Rodriguez’s visit comes as India, the world’s third-largest oil importer and consumer, is grappling with supply disruptions caused by the U.S.-Israeli war with Iran.

India sees ‘perfect complimentarity’ with Venezuela in energy trade amid Gulf crisis

The South Asian nation had stopped buying Venezuelan oil last year, after U.S. President Donald Trump authorised a 25% discretionary tariff on countries buying crude from Caracas.

It resumed purchases when sanctions were eased in February following a flagship oil supply pact between the U.S. and Venezuela.

All new 15-year, 30-year and 40-year government bonds will be a part of so-called fully accessible route that allows unfettered foreign access; these bonds are part of three global indexes.

Caps on short-term foreign investment in bonds, concentration limits and buying of individual bonds have been done away with.

New Delhi has exempted overseas investors and the BIS from capital gains tax on interest or gains from sale of government bonds.

The Reserve Bank of India will offer a discounted forex swap for external commercial borrowings by state-run companies.

A similar facility will bear the hedging costs for banks that will raise three to five year deposits from non-resident Indians until September end.

Banks will be exempt from statutory fund requirements for these deposits.

India ramps up defence of faltering rupee after holding fire on rates

RBI will restore time for realisation for export proceeds to nine months and raise limit for investments by non-residents and overseas citizens in equity instruments traded without SEBI registration.

The combined impact could certainly help bridge the $40-50 billion gap on the balance of payments estimated for FY27 - Sakshi Gupta, principal economist, HDFC Bank.

“If global conditions stabilise over the coming weeks, the cumulative capital flow effect could be higher” – Gupta.

Foreign investors pivot to short India debt ahead of policy turn

The measures are expected to draw a minimum of $30 billion over the next four months, but there are chances of a large upside, if banks leverage FCNR flows well - Kanika Pasricha, chief economic adviser at Union Bank of India.

YES Bank and Emkay Global Financial expect inflows to the tune of $40 billion to $50 billion.

For the full fiscal year ended in March, the government expects the South Asian economy to have grown by 7.7%, the National Statistics Office said, compared with an estimate of 7.6% from February.

India ramps up defence of faltering rupee after holding fire on rates

It is the second print under revised national account data that updated the base year and widened sources.

The measures, which include scrapping capital gains tax for foreign holders of government bonds and sweetening dollar deposit schemes for non-resident Indians, amount to a calibrated bet that currency stability can be shored up without sacrificing growth, which held strong in the last financial year but is seen sliding due to higher oil prices, supply disruptions and poor rains.

The RBI’s rate panel voted unanimously to keep the policy repo rate unchanged at 5.25%, a decision predicted by nearly 80% of 56 economists polled by Reuters.

The monetary policy committee also stuck to its “neutral” stance.

“Although risks of higher inflation have amplified, the MPC felt it would be prudent to wait for greater clarity to emerge,” RBI Governor Sanjay Malhotra said, adding the central bank will remain “data dependent”.

While underlying inflation pressures remain benign, second-round effects warrant vigil, he said.

India needs to monitor Iran war impact, RBI report says

India’s benchmark 10-year bond yield fell to 6.95%, while the rupee strengthened 0.6% to 95.24, after the RBI’s steps to attract dollar inflows. The benchmark equity indexes turned lower and were down 0.2%.

A war-driven surge in crude prices and record foreign fund outflows have pushed the rupee down nearly 5% to historic lows since the Gulf conflict erupted late in February, fuelling calls from some analysts for higher rates to defend the currency.

Across the region, policymakers are already moving to shore up their currencies. Indonesia, the Philippines and Sri Lanka have raised interest rates in recent weeks, while South Korea has held fire but signalled a turn is imminent.

Steps to support Indian rupee

The RBI held rates steady to avoid further pressure on growth, while policymakers moved separately to support the rupee. The government, alongside the RBI’s announcement, said it will scrap capital gains tax for foreign investors and remove the 20% tax on interest earned from such investments, effective from April 1, 2026.

India economy resilient but faces rising risks from Mideast war, government report says

Foreign investors are subject to a 12.5% long-term capital gains tax on listed shares and bonds held for more than 12 months.

Separately, the RBI said it will offer concessional forex swaps until September 30 to encourage state-owned firms to tap dollar borrowings.

It will also compensate banks for hedging costs on 3-year and 5-year foreign currency non-resident deposits aimed at the Indian diaspora.

The RBI set no dollar-inflow target but expects “healthy” inflows from the measures, Malhotra said, adding curbs on capital outflows are not under discussion.

Taken together, the measures could draw in $40 billion to $60 billion, said Sachchidanand Shukla, group chief economist at Larsen & Toubro.

The rupee has slid 5% this year after a similar drop in 2025. Economists warn higher oil prices and capital outflows could widen India’s balance of payments deficit to about $65 billion this fiscal year.

Higher inflation, lower growth

The central bank’s updated forecasts point to a trickier macro outlook.

Retail inflation is now seen averaging 5.1% this fiscal year, up from 4.6% earlier, with core inflation nudged to 4.7% from 4.4%.

India economy to grow 6.8%-7.2% in 2026-27, government forecasts

Retail inflation in India remains below the 4% target and is projected to stay within the central bank’s tolerance band of 2-6% in the current fiscal year, preserving room to hold rates. GDP growth by contrast, has been shaved and is expected at 6.6% this fiscal year, below the 6.9% forecast in April. In the fiscal year that ended in March, India’s economy grew a stronger-than-expected 7.7%, helped by the farming and construction sectors.

Global headwinds are clouding the growth-inflation outlook, but the economy remains “relatively strong,” Malhotra said.

Most economists now expect rate hikes in the second half of the year.

“The RBI’s revised growth and inflation forecasts, along with its guarded guidance, suggest it is preparing markets for a possible policy pivot as early as August,” said Krishna Bhimavarapu, Asia Pacific economist at State Street Investment Management.

Abhijeet Dipke, the 30-year-old Boston University graduate behind the online movement, said he was flying back from the United States, to seek police permission for a peaceful protest on Saturday against the education minister.

The parody “Cockroach Janta Party” (CJP) – echoing Prime Minister Narendra Modi’s Hindu-nationalist Bharatiya Janata Party (BJP) – has won millions of online followers on social media since its launch last month.

CJP was set up after India’s Chief Justice Surya Kant reportedly called young people who criticised the government “cockroaches” and “parasites” during a hearing. Kant later said his comments were taken out of context.

Dipke, a political communications strategist who formerly worked with the opposition Aam Aadmi Party (AAP), created the fictional party online on May 16.

Its popularity has soared, using the slogan “a political front for the youth, by the youth, for the youth”.

‘Overwhelming response’

Dipke has called for the resignation of Education Minister Dharmendra Pradhan, who has faced criticism over alleged irregularities in several key examinations.

“On my way to India… Leaving my fate in the hands of the Constitution,” Dipke wrote in a post on X on Friday.

Sonam Wangchuk, 59, a prominent activist from India’s Ladakh region, who spent six months in detention after being arrested in September following deadly protests demanding autonomy for the Himalayan territory, has said he will join the protests.

India’s viral ‘Cockroach’ party founder plans street protest

India tightly regulates social media content, and some of the CJP’s social media handles have been blocked.

But its Instagram handle, still online in India, has more than 22 million followers – more than double the BJP’s nine million followers on the same site, as well as the main opposition Congress Party’s 13 million followers.

Dipke earlier called on followers not to gather at the airport upon his arrival.

“The overwhelming response from those who want the resignation of Dharmendra Pradhan to our call to join us at Delhi Airport was beyond our imagination,” he said, in a video message on X, posted on Thursday.

“It is not feasible for so many people to assemble at the airport as it would cause inconvenience to the public and the security forces,” he said.

He said he would go immediately to the police “to seek permission directly for our peaceful protest” on Saturday.

“We are law abiding citizens and have to act responsibly,” he added. “So, please, be mindful that nobody should create any kind of disturbance.”

New Delhi’s foreign ministry said India saw Venezuela’s vast oil reserves as an “opportunity”, saying it had already become a major source of crude.

Rodriguez has led Venezuela, which accounts for around 17 percent of global crude reserves, since January, when US forces captured former socialist president Nicolas Maduro.

She was given a red-carpet welcome and shook hands with Modi outside New Delhi’s sprawling Hyderabad House before the talks began.

Modi later said that he was “happy” to have met the Venezuelan leader.

“We had extensive discussions on expanding our cooperation in energy, critical minerals, technology, agriculture, health and people-to-people ties,” he said in a post on X.

“As a valued partner in Latin America, our close cooperation with Venezuela holds immense importance for the Global South.”

Rodriguez, speaking after she landed on Wednesday, said she expected “very fruitful” discussions.

Rodriguez’s visit comes as India — the world’s third-largest oil importer — ramps up purchases of Venezuelan crude to offset supply disruptions linked to war in the Middle East.

“The government… is aggressively seeking out new sources of crude oil and energy to ensure India’s energy security,” senior Indian foreign ministry official Rudrendra Tandon told reporters after the meeting.

“So Venezuela is an opportunity, and it is very much part of our plan.”

India normally sources about half of its crude through the Strait of Hormuz.

But Iran has restricted shipping through the strait — which normally carries about one-fifth of the world’s oil and liquefied natural gas shipments — since the United States and Israel launched attacks on February 28.

The most-feared regulations, due to take effect in April 2027, sharply increase penalties when renewable power producers fail to deliver electricity matching their commitments to the grid, according to industry executives, investor presentations and documents reviewed by Reuters.

Industry groups estimate the tougher regime could cut revenue by about 11% for solar projects and as much as 48% for wind farms, fuelling concerns that India could make renewable investments less attractive just as it seeks billions of dollars to expand clean energy capacity.

India’s federal power regulator has said the tougher framework is needed to protect grid stability as renewable capacity expands rapidly.

The dispute over the new rules underscores the challenge of integrating growing volumes of renewable power into India’s grid while preserving investor confidence as the country seeks to meet its clean energy target of installing 500 gigawatts of non-fossil fuel capacity by 2030.

As of March, India had 288 GW of non-fossil fuel capacity, with wind and solar accounting for 73% of the total.

Under the revised rules, penalties rise according to the gap between scheduled and actual power supplied to the grid.

“Developers will face very high penalties even when deviations are small. This tightens margins, revenues will shrink and project viability will be affected,” said Debabrat Ghosh, India head at energy consultancy Aurora Energy Research.

Investors and developers generally eye at least a 10% internal rate of return (IRR) for solar projects, and at least 12% to 13% for hybrid projects combining solar and wind, analysts and industry executives said.

Aurora expects the new rules will reduce IRRs by 1.5 percentage points for wind projects and by 1.2 percentage points for hybrid projects.

Wanted: real-time weather forecasts

The penalties expose companies to financial risks they cannot fully control because renewable energy generation depends on weather conditions that remain difficult to forecast accurately in India, developers said.

“Renewable energy operates within the limits of weather and forecasting uncertainty,” said Raghavendra Upadhya, chief executive of the Wind Independent Power Producers Association, which represents more than 50 clean energy producers.

“While grid discipline is essential, the current approach places additional risk on projects built under earlier frameworks,” he said.

Smaller developers whose projects are most at risk from the tougher rules referred Reuters to their industry associations for comments.

The National Solar Energy Federation of India, which represents more than 100 clean energy companies, has challenged the regulation in court.

Officials have told industry representatives there can be no compromise on grid discipline, according to people familiar with the discussions.

Stricter rules unsettle foreign investors

Industry executives said the policy shift has caught developers off guard because many existing projects were bid and financed under a more lenient regime, leaving them exposed to costs that were not factored into their original economics.

“The market has not yet developed for generators to be that accurate,” said Pratyush Thakur, India country head at Blueleaf Energy, a clean energy producer and investor, owned by Australia’s Macquarie Asset Management.

The concerns have also unsettled other major foreign investors that have poured billions of dollars into India’s clean energy sector.

Investors including KKR, Canada Pension Plan Investment Board and Actis raised concerns with Indian officials during a meeting in April, according to five industry sources familiar with the discussions.

The investors warned about the impact of lower returns, policy unpredictability and financial stress from tighter grid rules, while arguing that regulatory tightening was advancing faster than improvements in transmission infrastructure and battery storage capacity, the sources said.

Because of these challenges, investment in the sector would slow, Thakur said, although he added that Blueleaf remained committed to India because of its long-term renewable energy potential.

Blueleaf plans to deploy about $3 billion in India, including around $1 billion in equity over the next three years, but expects grid-related constraints to delay the equity deployment by a further two to three years.

Actis said India continued to be one of its preferred investment destinations. KKR and Canada Pension Plan Investment Board did not respond to Reuters requests for comment.

Industry groups have also appealed to the prime minister’s office for relief, two sources said.

The clean energy ministry has held discussions with industry groups and appears open to easing implementation of the rules, according to the sources and documents reviewed by Reuters.

But the power ministry, its technical adviser the Central Electricity Authority, and Grid India, the country’s grid operator, have maintained that stricter enforcement is necessary to prevent grid instability.

The prime minister’s office, power ministry, clean energy ministry, Central Electricity Authority and Grid India did not respond to Reuters’ requests for comment.

Costly upgrades to meet tougher regulations

Developers say India still lacks several tools needed to meet the tighter standards.

Industry executives say weather forecasts in India are typically updated only a few times daily, compared with near real-time forecasting in some European power markets.

To adapt, renewable energy companies are investing in upgraded forecasting systems, automated weather stations and data science teams to improve power scheduling accuracy.

The industry will need to take other steps, such as adding batteries, said Kartikeya Sharma, co-founder of Sunsure Energy.

Sunsure is installing advanced automated weather stations on site and subscribing to real-time, high-resolution satellite weather data from European providers, he said.

Their border is one of the longest land frontiers in the world, stretching for more than 4,000 km (2,500 miles) across all sorts of terrain, making it difficult to police.

Border Guard Bangladesh said it had detected 10 attempted infringements by Indian authorities along several sections of the border.

India’s Border Security Force and ministry of external affairs did not respond to requests for comment.

India’s ruling Bharatiya Janata Party, which governs the border states of Tripura, West Bengal and Assam, has said it would tackle undocumented migration ​as a priority and since last year it has been trying to push Bengali-speaking Muslims branded “illegal infiltrators” into Bangladesh.

Bangladesh criticises India over fugitive leader Hasina’s speech

The issue has complicated efforts by both countries to mend ties following the 2024 ousting of Sheikh Hasina, Bangladesh’s long-time India-aligned leader.

“No individual or group will be allowed to enter Bangladesh illegally through the border,” BGB said in a statement, adding that any attempt to violate international border management norms and bilateral understandings would be “strictly resisted”.

Bangladesh’s border guards last month ​intensified patrols and launched public awareness campaigns along parts of the frontier due to concerns India had illegally forced people into Bangladesh in what officials, rights groups and analysts describe as “push-ins” — informal transfers of people into Bangladesh without going through verification and repatriation procedures.

India’s foreign ministry in May told reporters it had ​asked Bangladesh to verify the nationality of more than 2,860 suspected Bangladeshis living illegally in India.

BJP names chief minister in West Bengal

In one incident in the last day in the southwestern border district of Jhenaidah, the BGB alleged that Indian Border Security Force personnel tried to move 30 to 35 people towards Bangladeshi territory in a prison van after opening a border gate. The BGB said it forced the vehicle to retreat.

Dhaka has repeatedly said anyone identified as a Bangladeshi national should be returned through formal legal and diplomatic channels rather than being driven across the border.

The issue is expected to be taken up at director-general-level talks between the two sides’ border forces in New Delhi from June 8 to 11, government officials in Dhaka said.

Venezuela’s interim President Delcy Rodriguez is visiting India with a large team of ministers and held talks with Indian Prime Minister Narendra Modi on Thursday.

Discussions between the two sides focused on co-operation in both upstream and downstream energy projects, Rudrendra Tandon, Secretary (East), in the Indian foreign ministry, told a media briefing after the talks.

“We are working with a government that is friendly, that wants a partnership with India,” Tandon said. “We want to reciprocate that. Venezuela has traditionally been a close friend. We have collaborated very closely at the international level, so we are just going back to normal.”

Venezuela sees India as a “preferred partner” in the energy sector and Rodriguez would visit oil refining facilities in India during her visit that ends on June 7, Tandon said.

Venezuela’s Rodriguez arrives in oil-hungry India

She is also expected to meet top Indian energy industry leaders in financial capital Mumbai, Reuters reported.

India is a key buyer of Venezuelan oil

India was the second-largest importer of Venezuelan oil in May with purchases of 427,000 barrels per day, second only to the U.S., Reuters reported. India’s Reliance Industries has emerged as one of the three largest buyers of Venezuelan crude in recent months.

Venezuela is on course to become the fourth-largest supplier of oil to India in May, Kpler data showed.

Rodriguez’s visit comes as India, the world’s third-largest oil importer and consumer, grapples with supply disruptions caused by the U.S.-Israeli war with Iran, which has virtually shut the Strait of Hormuz – a key conduit that carried more than 40% of the South Asian nation’s crude oil imports.

Venezuela’s Rodriguez to discuss energy ties during India visit from June 3-7

India had stopped buying Venezuelan oil last year, after U.S. President Donald Trump authorized a 25% discretionary tariff on countries buying crude from the South American nation. It resumed purchases when sanctions were eased in February following a flagship oil supply pact between Washington and Caracas.

Under the agreement, reached after the U.S. capture of President Nicolas Maduro in January, Washington controls proceeds from Venezuelan oil sales through bank accounts administered by the Treasury Department, with commercial terms also following its guidance.

His wife had even begun to offer last rite prayers for his soul, she told AFP at the hospital in the capital Kathmandu, where he is recovering from “some frostbite” but is conscious.

Mountaineer Dawa Sherpa – who is in his 50s, and is better known as “Hillary” after famed climber Edmund Hillary due to his experience – vanished on the upper reaches of the world’s highest mountain in bitter conditions, early on May 30.

He was found on Thursday morning close to Base Camp by the Sagarmatha Pollution Control Committee (SPCC), a Nepali team that helps set routes on Everest and clean up waste left behind.

“He was found by a team of SPCC this morning close to the base camp – he was crawling down,” Pemba Sherpa of 8K Expeditions, which was overseeing search and rescue efforts, told AFP.

A helicopter flew him to Kathmandu, where an AFP team saw him carried out on a stretcher.

“I spoke to the doctors – he has some frostbite, but otherwise seems okay,” Pemba Sherpa added.

His wife Damu Sherpa said her family was overjoyed.

“We were very happy to hear the news, we had given up hope,” she said. “We also began puja (death prayers) yesterday.”

‘Tiger of the mountains’

Climber Chris Thrall, a former British Royal Marine, said he successfully summited the 8,849-metre (29,032-foot) peak with Sherpa around 5:00 pm on May 29.

He posted a video message on Instagram on Wednesday mourning what he thought was the death of Dawa Sherpa.

He called him an “absolute gentle giant of a man and a true ‘tiger of the mountains’”, in a post that assumed the worst.

Thrall described how on May 30 he had begun to descend from Camp Four – at around 7,950m – and just below the low-oxygen “death zone”.

He said that as he descended, Dawa Sherpa stopped.

“He sat down for a rest with his backpack, these guys carry huge loads,” he said.

“And I turned and I said, ‘Hillary, are you okay, brother?’ He said, ‘Yes, yes, fine Chris, please go, go!’ This is nothing new, you know, I’d go ahead, he’d go ahead.”

As Thrall went down, he found a Polish climber who was struggling after running out of supplementary oxygen and had suffered frostbite.

“It had been a long summit push. What should have been five days to the summit and back took us 11 days, that’s how challenging the conditions were,” said Thrall.

“So, do I go back for Sherpa, who’s probably going to rock up and be fine, as he has done hundreds of times before?” he added.

“Or do I help my fellow climber, who’s got no oxygen, frostbite in his fingers, and obviously you’re never far off hypothermia up there?”

Thrall described tough conditions, sharing his oxygen cylinder with the Pole as they descended, taking 11 hours to get to Camp Three. It would usually take two hours.

Search teams set out to find Dawa Sherpa but he was not seen again until Thursday morning, having made his way down on his own.

The climb was one of the last of the season, meaning that there were few other mountaineers on the peak.

Record 274 climbers scale Mount Everest in a single day from Nepali side

At least five people have died this season – two Indians and three Nepali climbers involved in Everest preparations.

More than 1,000 climbers reached the summit of Everest this season, according to initial tallies by Nepali officials, making it the busiest season on record.

Here are some details:

The blaze - the deadliest the city has seen since 2022 - broke out at a hotel in Delhi’s Malviya Nagar, which media said was popular among patients being treated at a hospital nearby and their relatives.

A criminal case has been lodged and the owner of the building has been arrested, police said.

A city-wide crackdown will be undertaken against all guest houses and other establishments operating in violation of fire safety norms and building by-laws, the chief minister’s office said in a post on X late on Wednesday.

Fire in Delhi hotel kills at least 21, police say

Non-compliant premises will be sealed and those responsible prosecuted, it said.

The foreign nationals killed in the incident included people from Bangladesh, Nigeria, Mozambique, and Liberia, according to media reports. Reuters was unable to independently verify the information.

India’s foreign ministry is in touch with the embassies concerned and is extending all necessary assistance, Foreign Minister Subrahmanyam Jaishankar said in a post on X.

‑Reuters

Reuters could not immediately confirm the nationalities of the victims. Several people had jumped out of the burning building in South Delhi’s Malviya Nagar to escape the flames, witnesses said, with residents dragging mattresses from a nearby store to try to break their fall.

“People spread mattresses, and a woman from the third floor jumped on it with a little kid,” witness Sher Khan said.

Television footage showed two people jumping from a higher floor of the building as it was engulfed in flames, with smoke billowing out.

Local people who helped in the initial rescue said the fire broke out on the ground and first floors of the four-storey building, trapping those on higher floors.

“There is a mattress shop here … We took the mattresses from there and laid them on the road to help those who were jumping out of the building,” Wasim Raja, a local resident, told news agency ANI.

Fire may have started in restaurant

The fire broke out a little before 9 a.m. (0330 GMT), and eight fire tenders were dispatched to douse the blaze, police said in a statement.

The fire was extinguished around midday, a Reuters witness said.

“Through the coordinated efforts of police, fire services, and other emergency responders, more than 40 persons have been rescued and shifted to nearby hospitals for medical treatment,” police said.

“It is with profound sorrow that 21 persons have been declared dead in this tragic incident,” it said.

Her five-day visit comes as India, the world’s third-largest oil importer, ramps up purchases of Venezuelan crude to offset supply disruptions linked to war in the Middle East.

Speaking after landing in New Delhi, Rodriguez said she expected to hold “very fruitful” discussions.

“We are going to have a very productive agenda, and I hope to discuss areas of cooperation that can help address the most pressing needs of the Venezuelan people,” she said, speaking on Venezuelan television.

New Delhi’s foreign ministry said Rodriguez, who was given a red carpet welcome, would meet with Prime Minister Narendra Modi on Thursday.

Ministry spokesman Randhir Jaiswal said in a statement that “the visit will further deepen India-Venezuela ties.”

Rodriguez has led Venezuela, which accounts for around 17 percent of global crude reserves, since January, when US forces captured former socialist president Nicolas Maduro.

Rodriguez was originally scheduled to be in New Delhi this week to participate in a summit on the conservation of big cat species.

But the conference was postponed to ensure the participation of African nations grappling with an Ebola outbreak.

The South Asian nation of 170 million people depends heavily on imports for its energy needs. Repeated price hikes have added strain on people struggling with long-running inflation which hit 9.04 percent in April.

Jalal Ahmed, chairman of Bangladesh Energy Regulatory Commission, announced the 16-percent hike two days after fuel prices were raised, taking kerosene to 135 taka ($1.09) per litre up from 130, and petrol to 140 taka from 135. Diesel was unchanged.

According to the government’s Bangladesh Power Development Board, around 44 percent of installed capacity comes from natural gas, 24 percent from coal, and another 24 from oil and diesel.

Bangladesh’s first nuclear power plant is nearing operational readiness, with the first phase of uranium fuel loading already completed.

As electricity demand surges in summer, when temperatures in Dhaka hit 35C, rural areas have experienced disruptions in power supply, although the capital and other major cities have largely avoided frequent outages.

Dhaka in March said it was seeking loans of around $2 billion from multilateral donors to tackle energy security concerns sparked by the surging fuel prices caused by the Iran war.

In May, the International Monetary Fund said it was in negotiations for a new assistance programme at Dhaka’s request.

Bangladesh is already in the middle of a $5.7 billion IMF programme, which began in 2023 and was due to run for four years.

The South Asian nation’s currency has come under sharp pressure from surging oil prices and foreign money outflows, prompting higher taxes on precious metal imports and calls to conserve foreign exchange.

In a rare move over the past three weeks, the Reserve Bank of India (RBI) has sent at least 10 queries to ascertain whether funds were routed overseas without a clear business purpose or tangible asset backing, one of the three sources said.

“The scrutiny is not about curbs but about the pace of capital outflows and why and whether they are exacerbating pressure on the currency and reserves,” another source said.

Indian rupee dented by oil price jump, equity weakness; likely RBI intervention caps losses

India’s capital account is only partially open. Companies can invest abroad through the overseas direct investment (ODI) route, subject to limits tied to net worth and for specific purposes. Individuals may remit up to $250,000 annually under the Liberalised Remittance Scheme (LRS) for uses such as education, healthcare and investments.

Regulators are focusing on large overseas investments routed through opaque structures, inflated valuations of offshore assets, and potential misuse of ODI routes for private wealth management by individuals and family offices, the sources said.

Reuters could not determine the recipients of the letters.

The sources declined to be identified as they are not authorised to speak to the media. Email queries sent to RBI and Securities and Exchange Board of India (SEBI) on Tuesday went unanswered.

Details of queries

According to RBI data, overseas direct investment rose 11% year-on-year to $48.39 billion in financial year 2025–26, while individuals remitted $28.9 billion abroad.

Under current rules, regulated entities must secure sectoral no-objections and file valuation reports with the RBI for ODI remittances. Larger or complex deals may also need prior RBI approval.

The SEBI has also recently slowed no-objection letters for its regulated firms seeking to establish overseas structures, a third source said.

RBI policy decision, growth data in focus for Indian rupee and bonds

Focus on family offices

In particular, regulators are taking a closer look at offshore remittances by family offices, many of which are structured as corporate entities, two sources said. This allows them to access higher remittance limits under ODI, compared with the individual remittance caps.

The RBI is examining at least two instances of family offices using the ODI route for managing personal wealth, the second source said.

The RBI could also scrutinise instances where corporates have established overseas investment arms, as such structures are often used for capital market exposure rather than genuine strategic expansion abroad, two sources said.

Separately, SEBI, while approving proposals from its regulated entities - including funds and wealth management firms - to set up overseas structures, is flagging cases where its assessments indicate aggressive valuations in capital market and private asset investments, one of the three sources said.

Valuations are typically conducted by SEBI-registered merchant bankers. Regulators are also scrutinizing whether bankers are assigning inflated valuations.

“The current approach appears to be one of enhanced oversight and calibration of remittances, rather than any rollback of legitimate cross-border expansion by Indian companies and entrepreneurs,” said Moin Ladha, Partner, Khaitan & Co, a law firm in India.

“We are seeing greater focus on ensuring that commercial rationale, deployment of funds and business plans remain robust throughout the life cycle of an overseas investment.”

The government said the support would be provided as interest-free advances to oil marketing companies to cover under-recoveries - the gap between market-linked jet fuel prices and the moderated rates charged to airlines.

“The measure will help protect and sustain domestic and international air connectivity, ensuring continuity of air services,” it added.

Indian state fuel retailers losing nearly 6bn Indian rupees daily despite price hikes

Shares of India’s largest airline, IndiGo, reversed course to trade up 1%.

Globally, airlines have been squeezed by rising jet fuel prices, which can account for up to 40% of operating costs.

The plans are in advanced stages with deliveries expected over 18 to 24 months, for a jump in value from recent government orders worth 30 billion rupees ($313 million) for tactical-class drones, said Smit Shah, president of the body.

“In the next phase, tactical drone procurements in India may exceed 200 billion rupees, or more than $2 billion,” said Shah, whose Drone Federation India represents more than 550 companies and works closely with the government.

Shah said the new orders may follow a fast-track procurement route designed to meet urgent operational needs, with deliveries probably needed within 24 months.

Pakistan, India drone battles mark new arms race in Asia

The defence ministry did not immediately respond to requests for comment on the likely purchase order, which Reuters is the first to report.

Offensive potential of low-cost drones in spotlight

India’s push follows clashes with Pakistan in May last year, when both sides deployed unmanned aerial vehicles at scale for the first time, highlighting the offensive potential of low-cost drones.

The conflicts in Ukraine and Iran have further sped adoption globally, driving down costs and reshaping battlefield tactics.

In March, the defence ministry approved a proposal worth about 2.38 trillion rupees ($24.85 billion) to buy transport aircraft, missiles system and “remotely piloted strike aircraft”, or armed drones, without giving a spending breakdown.

“Drones are force multipliers on the modern battlefield,” said Ramesh Chandra Padhi, an executive at IG Defence, a builder of advanced unmanned aerial and short-range missile systems.

“The Indian army is following emergency or fast-track procurement to expedite the induction of drones on a very large scale,” the former senior army officer added.

India, US close to signing first phase of trade deal

Drone industry explodes in India

India has more than 600 firms making drones and components, with more than 100 focused on defence applications.

The companies range from large players such as Adani Group, Larsen & Toubro and Tata Advanced Systems to startups like ideaForge, Newspace Research and Asteria Aerospace.

They work on building reconnaissance, logistics, loitering munition, precision-strike and critical component systems.

In recent years, India has overhauled a typically slow defence procurement process to allow faster acquisition of drones, particularly after clashes with Pakistan exposed gaps in surveillance and strike capabilities, Reuters has reported.

New Delhi has started relying on emergency procurement powers and swifter efforts under the Defence Acquisition Procedure, compressing timelines to months instead of years.

At the same time, in its push to boost domestic manufacturing, it is giving priority to systems made at home.

The government has also expanded schemes such as Innovations for Defence Excellence (iDEX) to fund prototypes and enable smaller firms to win initial orders and help scale up production quicker.

At the same time, the defence ministry has opened more areas of procurement to startups and private firms, eased testing norms and pushed the armed forces to add systems through repeat and interim orders that let companies refine products rapidly.

The changes are reshaping India’s drone industry, long dominated by small players, as better order visibility and policy support unlock funding and partnerships, DFI’s Shah said.

Venture investment and tie-ups with larger defence firms have picked up, with companies ramping up manufacturing and research to fill rising military demand, he added.

The hotel was located in Malviya ​Nagar in south Delhi, they said, a ⁠predominantly residential area popular with students ​and young professionals.

At least 40 people have been ​rescued so far, police said.

Television visuals showed a building on fire, smoke billowing out and charred ​exteriors as residents watched from a narrow ​lane nearby.

They also showed two people jumping from a ‌higher ⁠floor of the building.

Fire at India firecracker factory kills 20: police

“There was reportedly a restaurant operating on the ground floor of the building … it is most likely ​that the fire ​was ⁠connected to that restaurant,” local administration official Jitendra Kumar told reporters.

Prime ​Minister Narendra Modi said the loss ​of ⁠lives was tragic and extended his heartfelt condolences to those who have lost their ⁠loved ​ones and wished a ​speedy recovery to the injured.

Khalilur Rahman won 99 votes in the secret ballot compared to 91 for Cypriot diplomat Andreas Kakouris.

He will succeed the outgoing president – Germany’s former foreign minister Annalena Baerbock – in September.

Rahman became foreign minister in February, following Bangladesh’s first elections since the 2024 ouster of longtime premier Sheikh Hasina.

During the interim government of Nobel laureate Muhammad Yunus, Rahman served as national security advisor and point person on the country’s huge population of Rohingya refugees from Myanmar.

Rahman holds degrees in law and economics from US universities and has participated in trade talks with Washington.

The president of the UN General Assembly is elected annually for a one-year term based on a geographical rotation, but there is rarely more than one candidate, who is usually accepted by unanimous consent.

This year, the position was allocated to the Asia-Pacific region, which includes Cyprus.

A third diplomat who had declared his candidacy – Palestinian Ambassador to the UN Riyad Mansour – withdrew after it was strongly criticized by Israel.

India was the second-largest importer of Venezuelan oil in May with purchases of 427,000 barrels per day, second only to the U.S., Reuters reported. India’s Reliance Industries has emerged as one of the three largest buyers of Venezuelan crude in recent months.

During her visit, Rodriguez will hold talks with Indian Prime Minister Narendra Modi, Indian foreign ministry spokesperson Randhir Jaiswal told a media briefing.

“The discussions will involve the full spectrum of India-Venezuela relations and involve and explore avenues for further cooperation in the areas of energy, trade, investment, pharmaceuticals, healthcare, transportation, and renewable energy,” Jaiswal said.

Rodriguez last visited India in February 2025 when she was Venezuela’s oil minister, and led a delegation participating in the India Energy Week conference.

Her visit comes as India, the world’s third-largest oil importer and consumer, grapples with supply disruptions caused by the U.S.-Israeli war with Iran, which has virtually shut the Strait of Hormuz – a key conduit that carried more than 40% of the South Asian nation’s crude oil imports.

India had stopped buying Venezuelan oil last year, after U.S. President Donald Trump authorized a 25% discretionary tariff on countries buying crude from the South American nation. It resumed purchases when sanctions were eased in February following a flagship oil supply pact between Washington and Caracas.

Under the agreement, reached after the U.S. capture of President Nicolas Maduro in January, Washington controls proceeds from Venezuelan oil sales through bank accounts administered by the Treasury Department, with commercial terms also following its guidance.

Hydraulic cranes and ropes were used to dismantle the 21-metre (70-foot) sculpture in Kolkata, the capital of West Bengal state, before it was taken away on an open-top flatbed truck, AFP journalists saw.

“The statue was removed on Monday afternoon after locals complained it was swaying in the wind,” state lawmaker Sharadwat Mukherjee told AFP.

Mukherjee said the statue would be kept in a government warehouse while authorities decide on a new location.

The gold-coloured statue, depicting the 38-year-old Argentina and Inter Miami star lifting the World Cup trophy, was unveiled in December during Messi’s much-publicised GOAT tour of India.

Messi will captain Argentina at the upcoming World Cup, to be co-hosted by the United States, Canada and Mexico.

The statue drew scrutiny as political power shifted in West Bengal, where Prime Minister Narendra Modi’s Hindu nationalist Bharatiya Janata Party swept into office last month after defeating the opposition Trinamool Congress (TMC).

The statue was reportedly designed under the patronage of former chief minister and TMC leader Mamata Banerjee, and was criticised by the new BJP sports minister Nisith Pramanik as “unsightly”.

India, a nation of 1.4 billion people, is a cricket powerhouse but has long struggled on the international football stage, and is 142nd in the FIFA rankings.

Football, however, is the country’s second-favourite sport, according to recent research by data company Nielsen.