Newspaper Summary - 171125

 The article titled "India has a bouquet of climate finance options" discusses the various financial instruments available to India to address climate-related disasters and the necessary regulatory framework required to support these efforts.

India has a bouquet of climate finance options

India is currently grappling with extreme weather-related disasters, such as floods, excessive heat days, droughts, wildfires, and pest attacks. These climate-related calamities have resulted in significant damages and loss of life. Addressing this challenge requires a twin-track approach that includes mitigation efforts, like promoting green hydrogen, and adaptation efforts, such as implementing climate-resilient agriculture. These broad efforts demand long-term predictable finance.

The climate financing needs of India are extensive, covering several sectors:

• Clean energy
• Climate-resilient agriculture
• Water security
• Disaster preparedness and response

To meet these diverse needs, India has access to a bouquet of climate finance options. Globally, emergency liquidity instruments and insurance linked securities are noted as popular tools.

Key Climate Finance Instruments

The sources highlight several options for climate finance and disaster response:

1. Emergency Liquidity Facilities (ELFs): These instruments provide concessional short-term loans or grants that are rapidly disbursed for immediate disaster response. An example of this mechanism is the IMF's Rapid Financing Instrument (RFI), which helps countries facing urgent needs secure quick financing.
2. Insurance-Linked Securities (ILS): Instruments like catastrophe bonds (CAT bonds) help transfer climate-related risks from insurance providers to capital markets. They are typically utilized for large-scale but low-frequency disaster events.
3. Climate Disaster Response Options (CDROs): These are gaining popularity, particularly in the Caribbean and Latin American countries. They offer resources contingent on climate-related triggers, ensuring funds are released immediately when a disaster strikes.
4. Green Insurance: This category includes tools such as:
   • Parametric sovereign risk insurance, which pays out based on predefined weather parameters (like wind speed) rather than actual loss assessment.
   • Index-based weather insurance products.
5. Climate Bonds: These are fixed-income instruments specifically earmarked for financing climate-related projects.
6. Climate Finance Options (CFOs): These hybrid instruments combine contingency financing with climate risk insurance to better equip countries in planning their disaster response.

Regulatory and Institutional Requirements

India’s climate adaptation and resilience goals require more than just commercial insurance; they demand attention to regulatory frameworks. The current landscape necessitates regulatory backing for financial instruments, particularly those focused on parametric weather-based crop insurance.

India needs to shift toward developing Insurance, Resilience, and Finance Partnerships (IRFPs). Key regulatory and institutional actions include:

• The Insurance Regulatory and Development Authority of India (IRDAI) must work towards climate risk reduction.
• Strengthening the National Disaster Response Fund (NDRF).
• Aligning climate risks across India’s entire financial sector.
• Financial regulators need to develop a common taxonomy and map climate risks across banks and financial institutions.
• Close coordination is required among India’s top financial regulators: RBI, SEBI, IRDAI, NABARD, and NHB.
• The Financial Stability and Development Council (FSDC) should oversee the development of an Insurance and Resilience Regulatory Framework and establish an India Disaster Risk Finance Policy Framework.

The goal is to ensure that India has the institutional and financial architecture necessary to effectively manage its growing vulnerability to climate change.

The article titled "Repeating an old Indian mistake" argues that Western nations are currently committing a fundamental economic error, similar to the one India made immediately after gaining independence.

The core argument is that the West is capping immigration just as India capped capital flows in the decades following 1947.

India's Old Mistake: Capping Capital

The mistake India made was rooted in its post-colonial psyche, believing that foreign capital posed a threat akin to "re-colonization".

• For decades after Independence, India was obsessed with 'self-reliance'.
• The policy of capping capital flows prevented foreign capital from entering the country freely.
• The article asserts that this failure to exploit the initial benefits of globalization resulted in 'two lost generations' of growth, thereby prolonging poverty.
• India finally abandoned this counterproductive approach in the 1990s, realizing that the movement of capital and labour drives global wealth.

The West's Current Mistake: Capping Immigration

The article posits that the West, despite having benefited immensely from the globalization of capital in the late 20th century, is now making a similar restrictive move by clamping down on the free movement of people.

• Western nations are imposing controls on immigration, driven by economic fears.
• The fear is that migrants may depress wage rates or act as a fiscal drag on public resources.
• However, much like capital, economists generally view migration (labour) as a complementary factor of production that accelerates growth.
• The author notes the profound irony: "The West thinks the woes come from immigrants just as India thought its poverty came from capital itself".

The article points out that the US generally appears to be taking an alternative path—seeking more immigrants—while other parts of the developed world are tightening immigration controls.

The article titled, "India has a bouquet of climate finance options," addresses the need for diverse financial strategies to manage the increasing threat of climate-related disasters in India.

Context: Climate Challenges and Financing Needs

India is currently struggling with extreme weather-related disasters, including floods, excessive heat days, droughts, wildfires, and pest attacks, which have resulted in significant damage and loss of life.

To effectively address this issue, a dual approach is required:

1. Mitigation efforts, such as promoting green hydrogen.
2. Adaptation efforts, such as implementing climate-resilient agriculture.

These broad strategies require long-term predictable finance. India's climate financing needs are extensive, encompassing sectors like clean energy, climate-resilient agriculture, water security, and disaster preparedness and response.

Bouquet of Climate Finance Options

To meet these varied requirements, India has access to a bouquet of climate finance options. Globally, popular tools include emergency liquidity instruments and insurance linked securities.

The specific instruments highlighted are:

• Emergency Liquidity Facilities (ELFs): These instruments provide concessional short-term loans or grants that can be rapidly disbursed for immediate disaster response. An example mentioned is the IMF's Rapid Financing Instrument (RFI).
• Insurance-Linked Securities (ILS): These include instruments like catastrophe bonds (CAT bonds), which are mechanisms used to transfer climate-related risks from insurance providers to capital markets. They are typically utilized for large-scale yet low-frequency disaster events.
• Climate Disaster Response Options (CDROs): These are instruments popular particularly in the Caribbean and Latin American countries. They offer contingent resources that are triggered by a climate event, guaranteeing immediate fund release once a disaster strikes.
• Green Insurance: This category includes tools such as parametric sovereign risk insurance (which pays out based on predefined weather parameters like wind speed, rather than actual loss assessment) and Index-based weather insurance products.
• Climate Bonds: These are fixed-income instruments specifically earmarked for financing climate-related projects.
• Climate Finance Options (CFOs): These are hybrid instruments that combine contingency financing with climate risk insurance to better equip countries in planning their disaster response.

Regulatory and Institutional Requirements

The pursuit of climate adaptation and resilience goals in India requires more than just commercial insurance; it demands a robust regulatory environment. There is a need for regulatory backing for specific financial instruments, particularly those focused on parametric weather-based crop insurance.

India should move toward developing Insurance, Resilience, and Finance Partnerships (IRFPs). Key institutional and regulatory actions highlighted include:

• The Insurance Regulatory and Development Authority of India (IRDAI) must work towards climate risk reduction.
• The National Disaster Response Fund (NDRF) must be strengthened.
• A concerted effort is needed to align climate risks across the entirety of India’s financial sector.
• Financial regulators must develop a common taxonomy and map climate risks across banks and financial institutions.
• Close coordination among India’s top financial regulators (RBI, SEBI, IRDAI, NABARD, and NHB) is required.
• The Financial Stability and Development Council (FSDC) should oversee the development of both an Insurance and Resilience Regulatory Framework and an India Disaster Risk Finance Policy Framework.

The article titled "A wise take on markets" is a commentary or review focusing on a book that outlines the essential realities and eternal truths of stock market investing.

Core Philosophy and Approach

• The book champions the philosophy of patient, long-term investing, arguing that success comes from buying quality businesses and then essentially adopting a "do nothing" approach.
• This strategy reflects the core tenets used by recognized investment masters such as Warren Buffett, Benjamin Graham, and Philip Fisher.
• The greatest rewards belong to those who are patient and long-term. This requires developing a strong, Zen-like temperament to resist the temptation for unnecessary action.

Critique of Modern Investing

• The book critiques the modern market environment, which is dominated by over-information and noise.
• It posits that investors suffer from psychological biases that are amplified by constant news feeds, social media chatter, and superficial analysis sourced from screeners and databases.
• The key lesson for modern investors is the need to look beyond raw numbers and noise, emphasizing the qualitative side of investment decisions.
• The article notes that the fundamental goal of investing is not to trade, but to own a piece of a business.

Contents and Tools

• The book uses sporting analogies like baseball and cricket to explain market dynamics.
• It provides tools, such as checklists and frameworks, intended to help investors improve their decision-making processes.
• The book contains 12 chapters, covering subjects like "Stocks: Bulls, Bears, and the Middle Path" and "The Three Pillars of Great Investing".
• Ultimately, the article concludes that investment success relies heavily on behavioral control—knowing oneself and resisting psychological biases—rather than mere theoretical knowledge.

The article detailing India Inc’s financial performance for Quarter 2 (Q2) emphasizes a significant rebound in corporate profitability. The headline summarizes this trend as "India Inc Q2 Profit Growth Bounces into Double Digits" or "Positive result (Q2 corporate India's profit growth)".

Here is a reproduction of the key findings and analysis from the sources:

India Inc Q2 Profit Growth Bounces into Double Digits

Corporate India witnessed an aggregate net profit growth of 15.7% in Q2 FY26. This performance marked a strong recovery, sharply contrasting with the 7.3% profit growth reported in the preceding quarter (Q1 FY26).

Key Financial Metrics and Drivers:

• Net Profit Margin (NPM): The robust profit growth was achieved through an improvement in net profit margins (NPMs), which increased to 12.5% in Q2, up from 10.7% in Q1.
• Revenue and PBT: Revenue expanded by 15.2% year-on-year, while Profit Before Tax (PBT) rose by 17.8%.
• Tax Benefits: The Q2 results were positively impacted by a reduction in corporate tax rates.
• Commodity Prices: Profitability was supported by stable commodity prices, which helped bolster stronger margins across several industries.
• Festive and Rural Demand: The growth was buoyed by festive demand, rising rural consumption, and a strong rebound in demand in the domestic market.

Sectoral Performance Highlights:

The recovery was broad-based, with strong profit growth extending across various consumer and manufacturing sectors:

• FMCG and Consumer Durables: These sectors reported double-digit or strong single-digit profit growth. Sales for FMCG and consumer durables were boosted by rising rural consumption and price roll-backs implemented prior to the GST implementation.
• Cement: This sector showed impressive profit growth, driven primarily by higher government capital expenditure (capex).
• Textiles and Garments: This sector showed robust demand, with some festive demand being pulled forward into the quarter.
• Banking: The net interest income margins of banks remained robust, despite facing slight pressure on net interest margins (NIMs) due to rising funding costs.

The article notes that large-cap companies generally outperformed their lower-end counterparts and small-cap firms. This sustained momentum is expected to be maintained by continued higher government capex and the staggered nature of the festive season extending into Q3 and Q4.

The query relates to articles titled "Why retail investors should tread the IPO market with extra caution" and "NEW WAVE OF TECH IPOs LEAVES RETAIL INVESTORS AT RISK".

These articles detail the substantial risks and psychological pitfalls faced by individual investors participating in the high-volume Initial Public Offering (IPO) market.

Market Context and Investor Appetite

The Indian equity markets are experiencing a "galore" of IPOs. Through November 13, 2025, 90 IPOs cumulatively raised ₹1.51 trillion, nearly matching the ₹1.59 trillion raised in all of 2024. This surge is happening amidst a sluggish and over-valued secondary market.

Retail investors have displayed a strong appetite for IPOs. For instance, the average subscription for the retail book was approximately 24.28 times in 2025. This enthusiasm persists even in IPOs with steep valuations, such as Lenskart, which went public at a ₹70,000 crore valuation (roughly 230 times its FY25 earnings), with the retail book being subscribed 7.56 times.

The Dangers of Modern IPOs

The surge is notably driven by a "new wave of tech IPOs". Many of these digital listings are defined as companies that have never made a profit and are unlikely to do so.

1. High Failure Rate: Nearly two-fifths of IPOs that listed between 2021 and 2025 are currently trading at below their issue price.
2. Value Destruction: An analysis of nine high-profile ‘digital’ IPOs over the last three years showed that six remain below the issue price, with most being deeply unprofitable.
3. Information Asymmetry: The greatest risk stems from the fact that the information advantage lies entirely with the sellers (promoters and early investors). Sellers choose to come public at the moment that suits them best, typically when valuations are high and market sentiment is euphoric. The IPO process is fundamentally designed to transfer wealth from retail investors to promoters and early investors.
4. Regulatory Disclosure Limits: Investing in IPOs is riskier than direct stock investing because company disclosures are limited. Companies are required to disclose financial statements for just three years.

Behavioral Traps for Retail Investors

Retail investors are inherently attracted to IPOs, often viewing them as a means to achieve quick listing gains.

• Flipping Behaviour: A SEBI study analyzing IPOs between April 2021 and December 2023 found that, on average, 42.7% of shares allotted to retail investors (in value terms) were sold within a week.
• Holding Losses: Investors seeking quick gains often fail to execute this strategy effectively. The same SEBI study showed that individuals only exited 23.3% of allotted shares even when returns were negative in the first week of listing.

Due Diligence Checklist for Conservative Investors

Since decoding a company’s potential through limited IPO disclosures is difficult, retail investors must proceed with "utmost care".

Key Metrics to Examine:

• Valuation Comparison: Start by comparing simple metrics like the Price-to-Earnings (P/E) and Price-to-Book (P/B) ratios against listed peers, whose details are found in the Red Herring Prospectus (RHP). Investors should seek independent data as the RHP may compare the company only with highly-valued peers.
• Loss-Making Companies: For unprofitable firms, traditional metrics fail. Analysts recommend checking the Enterprise Value/EBITDA (EV/Ebitda) multiple to gauge underlying earning potential.
• Dividend Policy: Look for a company with a track record of dividend payouts, as this indicates the business has moved past its major investment phase and can share profits with shareholders.

Red Flags (Check in the RHP):

Investors should look out for several red flags in the RHP:

• Company shows paper profits but reports negative cash flows consistently.
• The balance sheet is highly leveraged, or the firm frequently refinances loans.
• A sudden spike in profit just ahead of the IPO.
• The IPO objective is to allow existing investors or promoters to exit entirely, rather than funding capacity expansion or debt reduction.
• Weak internal controls or adverse auditor remarks.
• High promoter pledging or frequent related-party transactions.

Expert Advice

Experts advise that retail investors should always be conservative in the IPO market, even if it means missing out on some opportunities.

1. Stick to Proven Businesses: The best approach is to focus on secondary markets where companies have proven business models, actual profits, and reasonable valuations.
2. Use Mutual Funds: The safest route for retail investors to gain exposure to IPOs is indirectly, through a diversified mutual fund that selects and participates in IPOs.
3. Manage Listing Day Risk: For investors aiming only for listing gains, they must be clear about their strategy and be prepared to cut losses immediately if the stock lists at a discount to the IPO price.

Participating in an IPO is often described as standing outside a theater: you see the hype and the crowd, but you don't know if the play is a masterpiece or a flop until after you've paid a premium price. The promoters know the script, and they only invite you in when the ticket price is highest..

Based on the sources, the article titled “India shaping development paths” details India’s role as a model for blending economic progress with sustainability and social inclusion on the global stage.

‘India shaping development paths’

A top official of the United Nations Development Programme (UNDP), Haoliang Xu (Acting Administrator), stated that India has demonstrated that economic growth and social inclusion can advance together. India is actively helping to translate its success stories into global lessons for achieving a more equitable world.

Key Aspects of India’s Development Model:

• Balancing Growth and Sustainability: India’s commitment to climate adaptation, renewable energy, and inclusive digital finance offers a blueprint for balancing growth with sustainability.
• Technological and Participatory Governance: India's growth story emphasizes the use of technology and participatory governance to ensure that development objectives are met and that no one is left behind.
• Shaping Global Pathways: India continues to shape “development pathways” that are deemed both economically sound and climate-responsible.

The article titled "All’s well among Indians, but can be better" summarizes the findings of the annual wellness survey conducted by ICICI Lombard, revealing insights into the well-being of Indians across six broad categories.

Key Findings of the Wellness Survey

The survey indicates that the overall well-being of Indians has plateaued over the past four years and has not yet reached pre-Covid levels.

Overall Wellness Index:

• India’s overall wellness index measured 72% in 2025, marking an increase of just one percentage point compared to the previous year (2024).
• The overall wellness score has remained stable since 2021.

Wellness Pillars (2025 Scores):

The report quantifies well-being across six areas:

• Physical: 78%
• Family: 66%
• Mental: 70%
• Financial: 72%
• Workplace: 72%
• Social: 71%

Generational Challenges:

• Gen Z struggles deepen, reporting declines across all six parameters.
• The younger cohorts experienced falls of 5% or more in physical, financial, workplace, and social wellness compared to the previous year.
• This decline underscores the growing pressures of health, economic insecurity, and family balance faced by Gen Z.

Workplace Pressures and Health:

• More than seven in 10 Indians (73%) believe that high-pressure work environments impact heart health.
• However, 41% frequently ignore symptoms, often dismissing them as mere stress.

Impact of Health Insurance (HI):

• Ownership of health insurance shows a strong correlation to well-being.
• Respondents who owned a health policy scored higher, especially in financial and family wellness. The overall score for HI owners was 75, compared to 71 for non-owners.

Diet and Nutrition:

• Nearly two-thirds (66%) of respondents are following a balanced diet, particularly Gen X and metro respondents.
• However, those in tier 1 towns lag due to low consistency.
• Conversely, 34% of respondents do not follow a balanced diet.

The sources contain an article titled "How popularity can shape your work life" which discusses how being well-liked or popular in a professional setting grants unspoken advantages but also comes with specific pressures and expectations.

Here is a reproduction of the key points from the article regarding how popularity shapes one's work life:

How Popularity Can Shape Your Work Life

Popularity, often achieved through social ease and genuine likability, significantly influences how colleagues and superiors perceive and respond to an individual, offering both perks and pressures in the workplace.

The Perks of Being Liked (Quiet Power and Authenticity)

1. Granting Autonomy and Trust: Being well-liked grants individuals a "quiet power" and "perceived trustworthiness". Colleagues attribute positive intent to their actions; for example, the same email might sound rude from one person but "assertive" from a well-liked person.
2. Smoother Collaboration: Popularity facilitates smoother collaboration. When someone is friendly and approachable, things flow more easily, such as smoothing over conflicts or awkward conversations.
3. Increased Freedom and Authenticity: People who are widely admired often feel freer to express themselves across professional settings. This is described as a paradox: being liked grants the autonomy to "be different". For those who are not popular, authenticity feels riskier, as they have "less margin for error" and must constantly prove competence.
4. Positive Perception of Actions: If an employee is well-liked, their occasional delays are seen as exceptions, and their tone in emails is "read kindly". When an employee needs a day off for mental health, their commitment is less likely to be doubted.

The Role of Cultivation and Effort

While some people are naturally charismatic, popularity can also be consciously cultivated.

• Conscious Changes: One marketing manager who did not initially view himself as popular began making deliberate changes, such as showing up to after-office outings and offering guidance to junior colleagues, leading to people noticing his contributions and smoother collaboration.
• Going Beyond Competence: One product designer realized that professional competence alone was insufficient to shape her colleagues' perceptions; she had to actively manage her visibility and relationships by volunteering for internal events and engaging informally with teammates.

The sources emphasize that the underlying focus should be on being a helpful team player rather than merely faking smiles or trying to curry favor with superiors. This is especially true because Indian corporate culture is deeply relationship-driven.

The Pressures of Popularity (The Performative Cost)

Popularity comes with definite pressures, referred to as the performative cost of popularity:

• High Expectations: When someone is known for being friendly and energetic, colleagues expect that energy every day. If that person is quiet or having a bad day, they are likely to be constantly asked "what’s wrong".
• Emotional Fatigue: The unspoken expectation to consistently perform this popular version of oneself can lead to emotional fatigue if the individual is not careful about setting boundaries.

Creating an Inclusive Workplace

The ultimate goal for an organization is not to make everyone the loudest or most popular, but to create spaces where people feel safe to contribute in their own way. Senior leadership can achieve this by:

• Normalizing the admission of mistakes.
• Showing empathy.
• Giving balanced feedback.
• Implementing smaller, inclusive practices like rotating who leads meetings and acknowledging quieter contributors.

Ultimately, while popularity can amplify your voice, integrity is what sustains it.

The article titled “Jaishankar meets Qatar’s leaders” details the External Affairs Minister’s engagement with the top leadership of Qatar in Doha.

Jaishankar meets Qatar’s leaders (P9)

External affairs minister S. Jaishankar met with Qatar’s top leadership on a Sunday in Doha.

Key Meetings:

• Jaishankar held a meeting with Prime Minister Mohammed bin Abdulrahman bin Jassim Al Thani, who is also the foreign minister.
• He also called on Qatar’s Amir Tamim bin Hamad Al Thani.

Topics Discussed: The minister reviewed key aspects of the Strategic Partnership between the two nations, including:

• Energy
• Trade
• Investment
• People-to-people connect
• The officials also exchanged views on Middle East/West Asia, regional, and global developments.

Jaishankar communicated the details of the discussions via a post on X.

The sources also indicate that the External Affairs Minister (EAM) was scheduled to meet his Russian counterpart, Sergei Lavrov, in Moscow on Monday (17 November) to discuss bilateral ties ahead of President Vladimir Putin’s New Delhi visit next month.