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Economy News, Latest Economic News Today | The HinduBusinessLine

GE, HAL clinch tech deal on joint jet engine plan India rejects USTR allegations, seeks termination of Section 301 probe Indian automobile sales record highest-ever sales in FY26, first time after FY19: SIAM Madhya Pradesh CM says basmati rice from the State is exported to 47 nations 63 Moons’ cybersecurity arm pilots GPS-spoofing solution at Indian airports Highways ministry notifies amendment to streamline fee for overloaded vehicles on NHs Global aviation crisis deepens as fuel shortage, Iran conflict hit airlines TRI launches agri-voltaic project to help farmers earn double income Hotel industry to hit $31 billion in 2029; listed hotel firms set to add 70k rooms by 2030: CBRE Temperatures may trend up over North-West, Central India until weekend Reduction in airport tariff credit neutral, minimal impact on revenue: Ind-Ra Global coffee prices rise as fertiliser costs and West Asia tensions threaten supply Bluspring Enterprises to acquire LSG Sky Chefs India, enters aviation catering sector China says policy to improve relations with India remains unchanged amid Arunachal naming row Research firms divided over impact of below normal monsoon on food inflation Unnat Krishi Mahotsav concludes, farmers to emerge as energy, fuel & hydrogen providers, says Gadkari Airlines may get ₹5,000 crore credit support under proposed ECLGS variant How kashmir’s breakthrough is making Gucchi mushroom farming possible Centre not taking away State’s power on bonus for agri produces, says FM Sitharaman Carriers cut flights on cost pressures, uncertain demand GE Aerospace scales AI from pilots to production; India anchors global capability West Asia crisis may push India’s current account deficit to 2% of GDP: Crisil Tax Dept to resume Tiger Global reassessment, says GAAR relief won’t alter SC ruling Ceasefire talks fail to restore vessel movement in Strait of Hormuz, fate of 599 ships remain inconclusive DMRC launches mid-life refurbishment of Blue Line trains to enhance safety and passenger experience Retail inflation likely rose 3.5-4% in March India-UK free trade pact may come into force from second week of May: Official 'West Asia war a good opportunity for energy reforms, lower costs for industry' India’s marine exports surge to ₹62,408 crore in 2024-25, Govt sets ₹1 lakh crore target PM Modi to inaugurate Dehradun-Delhi Expressway on April 14 India’s economic growth journey huge opportunity for international partners: Kwatra From diesel to daylight: How government solar schemes are powering India’s farmers The next energy leap: Replicating ethanol’s success in diesel Delhi EV Policy: Electric 3-Wheelers Only by 2027, 2-Wheelers by 2028 Windfall levy on export bound diesel, ATF raised India-flagged LPG tanker Jag Vikram crosses Strait of Hormuz after US-Iran ceasefire Muted pricing power, rising costs to curb benefits of demand in cement sector: HDFC Securities Central Railway to run four special local trains for Ambedkar Jayanti Cotton Association revises output estimates for 2025-26 up at 324 lakh bales of 170 kg each Agtech marketing in the age of regional content and creator communities Rajnath Singh, Nitin Gadkari to join 3-day agri event at Shivraj’s home turf, inaugurated today How agripreneurship will drive improved rural livelihoods in India World’s largest tur producer, yet an importer: A self-sufficiency puzzle unfolding on ground Ethanol in diesel generators: India’s next practical step towards energy security How sustainable sourcing can unlock value in India’s agri-value chains West Asia Crisis: Induction cooking may consume 13-27 GW power Govt defers power plant maintenance for three months; ready for summer demand Tractor sales cross 10 lakh mark in FY26 on strong rural demand, GST cut India to continue buying Russian crude oil India’s textile and garments exports to the US declined 28.7% in February 2026 Why India’s ₹5 pack won’t disappear, but getting smaller West Asia conflict: LPG usage at 21-month low in March E-way bill generation surged all time high of over 14 crore in March Cotton prices firm up tracking global prices Corn prices poised to fall on Iran-US ceasefire pact Air India at critical stage of transformation: Tata Sons Chairman FYL91 commences new flights to Hyderabad, Rajahmundry and Vijayawada Telangana’s GST revenue up 15% in last 3 months ASMS launches agri-commerce network AYOU in Hyderabad Ladakh turns to apricot blossoms to stretch short tourism season Govt proposes overhaul of company incorporation rules to cut paperwork, enable risk-based checks HAL delivers 4 helicopters to Coast Guard Charter services operators urge review of ATF pricing Structural gaps affect growth of India’s high-value horticulture sector: Report Rubio set to visit India in May to discuss trade, tariffs, defence, Quad DGFT rolls out procedure for allocation of calcined coke Qatar vows to remain reliable energy supplier to India amid West Asia tensions Gadkari bats for 100% land acquisition before approving NH projects India must rethink West Asia energy reliance after biggest shock in decades, says ONGC chief Sumeet SSG partners Pinnacle Industries to strengthen Maharashtra’s EMS fleet Consumer durables growth muted as demand slows, margins shrink: HDFC Securities March 2026 was the fourth-warmest month on record, says European weather agency India relaxes rice exports norms to some European countries Unseasonal rains damage rabi crops on 2.49 lakh ha, wheat most affected: Agri Minister ADB projects 6.9% growth rate for current fiscal, 70 bps lower than FY26 India-UK FTA likely by May 1; 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Sabari Rail: An answered prayer?
By V Sajeev Kumar · 2026-05-18 · via Economy News, Latest Economic News Today | The HinduBusinessLine
HALT AND GO. Kalady railway station, located along the proposed 111-km rail Angamaly–Erumeli Sabari Rail corridor

HALT AND GO. Kalady railway station, located along the proposed 111-km rail Angamaly–Erumeli Sabari Rail corridor

The ₹505 crore allocation in the Union Budget for the long-pending Angamaly–Erumeli Sabari Rail project has rekindled hope for improved connectivity in Kerala’s central Travancore region, especially among pilgrims and agro-industries.

Sanctioned in 1997-98, the 111-km rail corridor has remained stalled for nearly a quarter century due to alignment disputes and other related challenges. The proposed line will link Angamaly in Ernakulam district with Erumeli in Kottayam, passing through major towns such as Perumbavoor, Kothamangalam, Muvattupuzha, Thodupuzha, Bharanganam and Kanjirappally. The project is expected to ease access to the Pampa region and the Sabarimala pilgrimage centre.

The ₹3,800 crore project recently regained traction after the Union Cabinet approved 50 per cent funding for it. The Kerala government will fund the rest through the Kerala Infrastructure Investment Fund Board (KIIFB). The Railway board has assigned the task of land acquisition to the State, but the process is yet to take off despite a notification issued four months ago.

Ferrying agro cargo

So far, only limited groundwork has been completed, including track laying over an 8 km stretch, the construction of the Kalady station, and a 1 km bridge across Periyar river.

Jijo Panachinani, Secretary of the Federation of Sabari Railway Action Council, said the rail link would provide a strong impetus to tourism and regional economic growth. The enhanced connectivity may benefit destinations such as Thattekad, Bhoothathankettu, Munnar, Vagamon and Thekkady, while also strengthening pilgrim circuits including Malayattoor, Kalady and Bharanganam.

Apart from proving a boon to Sabarimala pilgrims, the project is expected to improve cargo movement to interior markets, in a significant boost to agro industries in the region.

The rail link would enable faster movement of produce such as pineapple, natural rubber, pepper, cardamom and plywood to various upcountry markets, which are hitherto reached by road. With the Railways reportedly planning to build more cargo terminals across the country through the public-private partnership (PPP) mode, the setting up of a cargo terminal at Thodupuzha, as part of the Sabari Rail project, would be an ideal option, Panachinani said.

In a representation to the Railway Minister, the action council called for the development of a dedicated cargo terminal at the proposed Thodupuzha railway station, as that would boost the agro-industrial sector of Idukki and its adjoining regions. The facility would enable the efficient transportation of key agri commodities to north Indian markets.

The development of a cost-effective and rapid rail-based logistics for agricultural produce, spices and industrial goods — all of which are traded in large volumes in the region — will substantially promote regional economic growth. It will also enhance freight traffic revenue for the Railways, thereby improving the commercial viability of the Sabari Railway project, the action council said.

Job creation

George Valy of the Indian Rubber Dealers Federation in Kottayam said the commissioning of Sabari rail would immensely benefit the natural rubber industry by enabling hassle-free movement of rubber sheets, latex, block rubber and so on to upcountry markets.

It could also facilitate the setting up of rubber-based small-scale industrial units in the central Travancore belt, thereby increasing job opportunities, he said.

Baby John, President, Pineapple Growers Association Keralam, said nearly 100 truckloads of the GI-tagged Vazhakulam pineapple are dispatched daily to north Indian markets. The Sabari railway line would ensure timely delivery of fresh fruits to markets where pineapple is in big demand round the year.

The Kalady Rice Millers Consortium, the largest rice producing cluster in Kerala, said that enhanced logistics through the proposed Sabari rail line would improve the transportation of raw materials and finished products from industrial hubs to wider markets.

Former Union Minister and working chairman of Kerala Congress PC Thomas said the rail link should have a double track to benefit the region adequately.

Besides generating jobs and accelerating regional growth, the project is expected to support the industrial and logistics hubs in its vicinity, including the furniture cluster at Kothamangalam-Nellikuzhi, Kinfra Food Park at Muvattupuzha-Nellad, the Spices Park at Thodupuzha-Muttom, and the Food Corporation of India godown at Thodupuzha-Arakkulam.

Published on May 18, 2026