Morning Brief: India To Trace Chinese Parts In Military Hardware; Rs 1 Lakh Crore Scheme To Create 3.5 Crore Jobs Launched; Manufacturing Hits 14-Month High; And More

Kick-start your morning with Swarajya’s Morning Brief – your news fix, curated for clarity and insight.

India To Trace Chinese Parts In Military Hardware

The defence ministry is set to launch a major review of military procurement to identify Chinese-origin components in equipment offered to the armed forces, and to assess the vulnerability of defence supply chains. As part of its 2025 reform push, the ministry will hire an external consultant to evaluate indigenous content claims, map dependencies, and conduct detailed cost and technology transfer analyses.

The move follows concerns that some vendors have inflated indigenous content figures, with critical components often traced back to China, sometimes routed through third countries. Drones and anti-drone systems have been particular areas of scrutiny. The consultant will also assess patent valuations and cases where private firms have underquoted development costs, raising fears of inflated final prices.

Govt Launches Rs 1 Lakh Crore Scheme To Create 3.5 Crore Jobs

The Cabinet has approved the Rs 1 lakh crore Employment Linked Incentive (ELI) scheme, aimed at creating over 3.5 crore formal sector jobs by August 2027. Announced last year to counter criticism over weak job creation, the scheme comes just ahead of key state elections in Bihar, Bengal, Assam, Kerala, and Tamil Nadu. It targets first-time employees earning up to Rs 1 lakh a month, with the government offering up to Rs 15,000 each in two instalments to nearly 1.9 crore individuals.

The second component encourages manufacturing firms to expand hiring, offering up to Rs 3,000 per new employee per month for two years—extendable to four years in the sector. To qualify, companies must sustain new hires for at least six months.

Manufacturing Hits 14-Month High

India’s manufacturing activity hit a 14-month high in June, driven by a surge in new orders, especially from overseas, resulting in a record rise in employment, according to a private survey released Friday. The HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose to 58.4 in June from 57.6 in May, well above the 50-point threshold that separates expansion from contraction.

The sharp increase in demand was supported by stronger marketing efforts and a notable jump in exports. Production rose at the fastest pace since April 2024, buoyed by improved efficiency and robust sales. However, the growth was concentrated among intermediate goods makers, while consumer and capital goods segments showed signs of slowing. The PMI reading also remained above the long-run average of 54.1, signalling sustained momentum in the sector.

Other Developments

Adani Power Reboots Bangladesh Supply After Dues Cleared

Bangladesh has cleared $437 million in dues to Adani Power for electricity supplied from the 1,600 MW Godda plant in Jharkhand, resolving all pending payments. The June payment was the single-largest instalment received by Adani Power under the cross-border agreement, which supplies about 10 per cent of Bangladesh’s electricity needs.

With the financial dispute settled, both 800 MW units are now expected to operate in line with Bangladesh’s electricity requirements. To ensure timely future payments, Dhaka has issued a sovereign guarantee and a $180 million letter of credit.

With less than a week to go before the 9 July tariff pause deadline, US President Donald Trump hinted at an imminent trade deal with India, promising “much less tariffs” and a more balanced playing field. Speaking to reporters, Trump said he believes a deal is close and that India is opening up its markets: “Right now, India does not accept anybody in… if they do that, we’re going to have a deal.”

Indian negotiators have extended their stay in Washington as both sides work to close a bilateral trade agreement amid rising pressure. India has hardened its stance on concessions in sectors like agriculture and dairy, even as it seeks exemptions from steep reciprocal tariffs that could snap back to 26 per cent if talks fail.

US Moves To Limit Visa Tenure For Students

International students in the US may face fresh uncertainty as the Trump administration moves to impose fixed visa tenures, replacing the current system of flexible stays. The proposal targets F, J, and I visa holders—students, exchange visitors, and foreign media representatives.

If implemented, the rule would sharply curtail the discretion currently given to international students on the length of their stay. The move is seen as part of a broader tightening of immigration policy under the Trump administration.

From The States

Bihar: CBI Calls Lalu ‘Kingpin’ I Land-For-Jobs Case

The CBI on Tuesday (1 July) concluded its arguments seeking to frame charges against Lalu Prasad, his wife Rabri Devi, and sons Tejashwi and Tej Pratap Yadav in the land-for-jobs case, describing Lalu as the "kingpin" of the alleged scam.

The agency cited the statements of two approvers who claimed Lalu pressured railway officials to hire specific individuals, and testimonies from officials who said job lists were handed over by Lalu’s private secretary. The CBI argued that Rabri, Misa Bharti, and Lalu's sons were direct beneficiaries of land parcels exchanged for illegal railway jobs.

Congress Rules Out CM Change in Karnataka

Congress leaders Randeep Singh Surjewala and D K Shivakumar on Tuesday dismissed speculation about a leadership change in Karnataka, confirming that Siddaramaiah will continue as Chief Minister. Surjewala said the consultations with MLAs were only meant to review performance, not to assess support for a CM switch. He also advised Congress legislators to refrain from making public remarks on internal matters.

Despite the warning, MLA Iqbal Hussain reiterated his demand for Shivakumar to be made CM. In response, Shivakumar said Hussain would be served a notice for speaking out of turn and insisted the party was united behind Siddaramaiah’s leadership.

You’re all caught up—until next time.