Narendra Modi
Modi's cabinet this week approved a Rs 1.9 lakh crore semiconductor-and-electronics package, Rs 25,446 crore Varanasi elevated corridors, Rs 3,907 crore railway projects, and a national urea policy, while he concluded FTAs with New Zealand and the EU and pressed Canada to finalize a trade pact.
Narendra Modi is presiding over the most concentrated burst of cabinet spending and dealmaking of his current term. In a single week his government approved a Rs 1.9 lakh crore electronics package centered on Semicon 2.0 chip fabrication and a mobile-phone manufacturing scheme targeting over 30 percent global share by 2030-31, a Rs 25,446 crore pair of elevated corridors in Varanasi under the Decongestion Plan, Rs 3,907 crore in railway multitracking for Odisha and Jharkhand, and a National Urea Investment Policy (NIPU-2026) designed to end India's import reliance with 8-9 new gas-based plants and over Rs 10,500 crore in projected subsidy savings.
On the diplomatic front, Modi returned July 12 from a three-nation Indo-Pacific tour through Indonesia, Australia, and New Zealand. In Melbourne he and PM Anthony Albanese finalized the Administrative Arrangement of the India-Australia Civil Nuclear Agreement, enabling private Australian miners to sell uranium directly to Indian private entities. In Auckland he held New Zealand's first state visit by an Indian PM, cementing the April FTA and establishing an Agriculture Productivity Partnership. With Indonesia under President Prabowo, the two sides agreed to scale trade to $38 billion and move forward on BrahMos missile sales. Separately, India concluded what its negotiator called its most ambitious FTA to date with the EU.
Modi is pressing multiple trade fronts simultaneously. He told Canadian PM Mark Carney to finalize the Comprehensive Economic Partnership Agreement before a planned visit this year, with the third Ottawa round wrapping July 10 and both sides targeting $50 billion bilateral trade by 2030. A US-India interim trade deal is near completion after USTR Greer's June New Delhi visit, targeting $500 billion bilateral trade by 2030 with India offering tariff cuts and a $500 billion energy-and-tech purchase commitment over five years.
At the G7 in Evian, Modi and German Chancellor Friedrich Merz reaffirmed defense cooperation and a transit visa waiver for Indians, with Merz inviting Modi to Germany for the 8th Inter-Governmental Consultations marking 75 years of diplomatic ties. Poland's Deputy FM Bartoszewski publicly credited Modi with preventing tactical nuclear use in Ukraine in late 2022, as Warsaw and New Delhi resolved their dispute over India's discounted Russian oil purchases ahead of a planned visit by Polish PM Tusk.
Modi launched India's campaign for a 2028-29 non-permanent UN Security Council seat, declaring reforms "can no longer be delayed." Slovakia endorsed the bid after Modi's recent state visit to Bratislava, a reciprocal arrangement after India backed Slovakia's candidature.
His government continues to hold the 1960 Indus Waters Treaty in abeyance following the April 2025 Pahalgam attack, ceasing hydrological data sharing and fast-tracking Chenab-Beas Link and other projects, with New Delhi insisting the suspension persists until Pakistan irreversibly dismantles its terror infrastructure.
Domestically, Karnataka CM D.K. Shivakumar and Deputy CM G. Parameshwara petitioned Modi for urgent federal drought intervention as the state records a 30 percent rainfall deficit and estimated 80 percent crop losses in several areas. Telangana CM A. Revanth Reddy met Modi on July 14 to push for cabinet approval of the Regional Ring Road's northern section. Modi opened Bharat Tex 2026, India's flagship global textile fair with 1,600-plus exhibitors, and announced ex-gratia payments for victims of maritime tragedies in West Bengal and Vietnam.
On their plate
Modi's cabinet approved a Rs 1.9 lakh crore semiconductor-and-electronics package (Semicon 2.0 plus a mobile manufacturing scheme), Rs 25,446 crore in Varanasi elevated corridors, Rs 3,907 crore in railway multitracking for Odisha and Jharkhand, and the National Urea Investment Policy (NIPU-2026) targeting 8-9 new gas-based plants to end import reliance. The approvals span chips, freight capacity, urban congestion, and fertilizer self-sufficiency, all framed within PM Gati Shakti and 2030-31 targets.
Modi's July 1-12 tour through Indonesia, Australia, and New Zealand forged a strategic arc linking the western and eastern Indian Ocean. He finalized the India-Australia uranium export administrative arrangement with Albanese in Melbourne, cemented the April FTA with Luxon in Auckland on the first Indian PM state visit to New Zealand, and agreed with Prabowo to scale Indonesia trade to $38 billion and advance BrahMos missile sales.
Modi is running multiple trade negotiations in parallel. He told PM Carney to finalize the India-Canada CEPA before a planned visit this year, with the third Ottawa round concluding July 10 and both sides targeting $50 billion bilateral trade by 2030. A US-India interim deal is near completion targeting $500 billion trade by 2030. India also concluded its most ambitious FTA to date with the EU, with legal review due July 2026 and entry into force by Q2 2027.
Modi publicly launched India's campaign for a 2028-29 non-permanent UNSC seat, arguing reforms can no longer be delayed and that developing countries seek equal participation. India will contest Tajikistan for the Asia-Pacific Group seat in June 2027 elections, treating the bid as a step toward a permanent seat. Slovakia endorsed the bid after Modi's state visit to Bratislava, reciprocating India's earlier backing of Slovakia's candidature.
Modi's government continues to hold the 1960 Indus Waters Treaty in abeyance following the April 2025 Pahalgam attack, ceasing hydrological data sharing and fast-tracking Chenab-Beas Link, Sawalkote, Ratle, and Pakal Dul projects. New Delhi says the suspension persists until Pakistan irreversibly dismantles its terror infrastructure. Pakistan's leadership calls water diversion an act of war and is pursuing UN and PCA legal routes.
Key relationships
Modi and PM Albanese finalized the Administrative Arrangement of the India-Australia Civil Nuclear Agreement at their third annual summit in Melbourne, enabling private Australian uranium sales to Indian private entities.
Modi conducted the first Indian PM state visit to New Zealand, cementing the April FTA and establishing an Agriculture Productivity Partnership with PM Luxon.
Modi and German Chancellor Merz reaffirmed defense and security cooperation at the G7 in Evian, welcoming a Defence Industrial Cooperation Roadmap and transit visa waiver for Indians.
Modi is pressing PM Carney to finalize the India-Canada Comprehensive Economic Partnership Agreement before a planned visit this year.
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