Newspaper Summary 251125

 The sources provide a detailed snapshot of Financial Markets and Investment in India in November 2025, highlighting trends in equity markets, burgeoning primary market activity, significant shifts in alternative investments, evolving financial regulations, and new areas of corporate finance, all set against a backdrop of macroeconomic and policy initiatives.

1. Capital Market Performance and Investor Sentiment

Secondary Market Volatility and Decline: The secondary market in November 2025 experienced volatility and a broad decline, particularly evident in benchmark indices. The Nifty extended its losing streak for a second consecutive session, falling below the psychological 26,000-mark to close at 25,959.50. Similarly, the Sensex fell 331.21 points to settle at 84,900.71.

Factors weighing heavily on investor sentiment include concerns over the weakening rupee and persistent selling pressure from foreign portfolio investors (FPIs). The rupee remained under pressure following a sharp fall to record lows near 89.65 against the US dollar. Broader markets also witnessed intense selling, with the Nifty Smallcap 100 index declining 0.85%.

Sectoral Movements: Most sectoral indices closed in the red, with Nifty Realty leading the decline by falling over 2 per cent. In contrast, Nifty IT was the only sectoral index to finish in the green. Key stocks saw significant swings, such as SBI Life surging 2.60 per cent, while JSW Steel declined 7.05 per cent, and Reliance Industries slipped 15.89 per cent.

RBI Caution on Valuations: The Reserve Bank of India (RBI) noted that while the Indian economy is gaining momentum, it cautioned that surging global equity valuations may be "outpacing fundamentals" and could eventually threaten financial stability. However, domestically, the RBI believes the economy is becoming more resilient to external shocks due to monetary and regulatory measures.

2. Primary Market Activity and IPO Rush

The primary market is experiencing robust activity, defying the subdued secondary market performance, and signaling strong market depth and liquidity.

Record IPO Pipeline: December 2025 is anticipated to be the busiest month for initial public offerings (IPOs), with eight companies expected to launch offerings worth more than ₹30,000 crore. If realized, this would surpass the December 2024 record of ₹25,438 crore. Total fundraising via IPOs in 2025 so far exceeded ₹1.53 lakh crore, making India the world’s third-largest IPO market.

Key Listings and Trends:

• AI-Focused IPOs: Fractal Analytics, an advanced analytics and AI solutions company, received SEBI approval for its proposed IPO worth ₹4,900 crore (comprising a fresh issue of ₹1,279.3 crore and an Offer For Sale of ₹3,620.7 crore). This is noted as the country's first IPO by an AI-focused company.
• Anticipated Listings: Other major IPOs include Meesho (around ₹6,000 crore), Clean Max Enviro Energy Solutions (about ₹5,200 crore), and ICICI Prudential Asset Management Co (reportedly ₹10,000 crore). Sembcorp Industries has also begun talks for an IPO of its India unit.

Valuation Concerns and Investor Behavior: Despite the high activity, listing performance has been mixed, with 32 IPOs debuting below issue price. Experts warn that high valuations lead to a greater margin for short-term disappointment. A notable trend observed in underperforming startup IPOs this year is the presence of heavy subscription, particularly from the "excitable segment" of retail investors, which has sometimes acted as a "reliable ‘negative indicator’". Companies listing at high valuations, such as Groww, often face intense scrutiny regarding whether their market capitalization merits multiples similar to exchanges like BSE.

3. Corporate Finance and Investment Flows

Increase in Commercial Credit: The total flow of financial resources to the commercial sector increased significantly during the first seven months of FY26 (April–October) to ₹20.1 lakh crore, up from ₹16.2 lakh crore a year prior. This growth was primarily driven by non-bank sources, including corporate bond issuances, credit from non-banking financial companies (NBFCs), and foreign direct investments (FDI).

Focus on Digital and Green Infrastructure: Investment is flowing significantly into sectors supporting India’s digital future:

• Data Centers: Credit flow to data centers is rising due to scaling projects and massive capital expenditure (estimated at ₹50–70 crore per MW for modern centers). Banks, including the Bank of India and Indian Bank, are prioritizing loan proposals for data centers and renewable energy in their infrastructure credit pipelines.
• AI Investments: Global VC firm Accel partnered with the Google AI Futures Fund to co-invest up to $2 million in founders building frontier AI companies in India.
• Climate Finance: SBI Ventures plans to launch a ₹2,000 crore climate-focused fund in the first quarter of the next calendar year, targeting early and growth-stage climate start-ups, particularly those in frontier climate technologies and AI-enabled climate innovations.

Debt Market Dynamics: India’s financial institutions are preparing for near-term policy decisions. Indian lenders and state-run firms are rushing to raise up to $3.5 billion through bonds ahead of India's GDP data release and the RBI monetary policy decision, intending to lock in current borrowing costs amidst diminished hopes for a December rate cut.

Furthermore, Online Bond Platforms (OBPs) are transforming bond markets for retail investors, with monthly transaction volumes tripling to around ₹1,500 crore. This surge is attributed to SEBI’s reduction of the minimum face value for bonds from ₹1 lakh to ₹10,000, making the asset class more accessible and easing diversification for retail participants. However, investors are cautioned to check credit ratings and avoid choosing bonds solely based on high yields, as this typically implies higher credit risk.

4. Alternative Investments and Regulatory Gaps

Bullion Investment Surge: Indian households are increasingly turning to bullion as an investment. This shift led to a near trebling of gold imports ($14.7 billion) and a fivefold spike in silver imports ($2.7 billion) in October, significantly contributing to the doubling of India’s trade deficit. This behavior, particularly investment buying of bars, coins, and digital gold, is noted as "deceptive glitter," where buyers are behaving like investors.

• ETP Growth: Holdings in silver Exchange Traded Products (ETPs) by Indians have soared from 2.1 million ounces in Q1 2022 to over 38 million ounces by Q4 2024, marking a compounded annual growth rate of over 200 per cent. Gold ETPs have also seen significant inflows, crossing ₹1 lakh crore in assets.
• Policy Concern: Unchecked household accumulation of bullion risks reversing the financialization of savings and bloating the import bill. Financial regulators are specifically called upon to crack down on digital gold products which "operate in a regulatory vacuum".

5. Financial Policy and Regulation

SEBI Proposals for Mutual Funds (TER): SEBI is pursuing a major overhaul of the Total Expense Ratio (TER) framework for mutual funds, which includes a contentious proposal to cap brokerage costs at 2 basis points (bps), down sharply from the current 12 bps for cash market transactions. Mutual fund houses have urged SEBI to reconsider, arguing the proposed cut is too steep and could negatively impact service quality, research, and the ability to participate in block deals.

Boosting Financial Inclusion via Demat Accounts: SEBI proposed changes to the Basic Services Demat Account (BSDA) facility to improve financial inclusion. Specifically, SEBI suggested excluding Zero Coupon Zero Principal (ZCZP) bonds from the portfolio value calculation used to determine BSDA eligibility. This is because ZCZP bonds are non-transferable and non-tradable, and including them can artificially inflate a small portfolio, rendering the investor ineligible for BSDA benefits meant for small investors.

Legislative Consolidation: In the upcoming Parliament session, the government plans to introduce the Securities Markets Code Bill (SMC), 2025, which seeks to consolidate three major acts (SEBI Act, Depositories Act, and Securities Contracts (Regulation) Act) into a single streamlined law.

---

Analogy: The Indian financial markets in November 2025 resemble a house undergoing major renovation while still occupied. The foundation (secondary market) is shaking due to external stresses like the weak rupee and FPI selling. However, the construction crew (primary market/IPOs) is working overtime, expecting record-breaking activity, especially in promising new wings dedicated to AI and green finance. Meanwhile, the financial architect (SEBI) is busy tightening the blueprints for fees and simplifying access for small-scale residents, even as consumers, worried about the construction noise, are moving their valuables (savings) into physical gold and high-growth silver ETPs.

The sources detail a complex landscape of Key Regulatory and Legal Matters in India as of November 2025, covering broad policy agendas, specific financial market reforms, significant corporate fraud settlements, and ongoing legal battles concerning intellectual property and labor.

1. Major Legislative Agenda in Parliament

The government is prioritizing a packed reform agenda during the winter session of Parliament, scheduled to start on December 1, with 15 sittings.

Regulatory Consolidation and Reform:

• Securities Markets Code Bill (SMC), 2025: This key legislation seeks to consolidate three major acts—the SEBI Act, 1992, the Depositories Act, 1996, and the Securities Contracts (Regulation) Act, 1956—into a single streamlined law.
• Financial Sector Bills: Other major bills on the agenda include the Insurance Laws (Amendment) Bill, 2025, proposing composite licenses for insurers and allowing 100% Foreign Direct Investment (FDI) in the sector. Also listed are the Arbitration and Conciliation (Amendment) Bill and the Corporate Laws (Amendment) Bill, 2025.
• Insolvency Reform: The Insolvency and Bankruptcy Code (IBC) Amendment Bill, 2025, is expected to return for approval. It proposes to overhaul the framework by clarifying ambiguities, addressing procedural delays, and introducing a creditor-initiated insolvency resolution process (CIIRP).
• Ease of Business: The Jan Vishwas (Amendment of Provisions) Bill, 2025, also awaits approval and aims to simplify compliance and decriminalize minor business offenses.

2. Financial Market Regulatory Overhauls (SEBI)

SEBI has been actively reviewing regulations governing mutual funds and demat accounts to enhance market integrity and financial inclusion.

Mutual Fund Expenses (TER Overhaul):

• SEBI proposed a sweeping overhaul of the Total Expense Ratio (TER) framework.
• The most contentious proposal is to sharply cap brokerage costs for mutual funds from the current maximum of 12 basis points (bps) to just 2 bps for cash market transactions, and from 0.05% to 0.01% for derivatives.
• Mutual fund industry leaders met with SEBI to urge reconsideration, arguing that a move this steep is "not feasible" and could negatively impact research and trade execution, especially for smaller asset management companies (AMCs) that rely heavily on broker-provided research. They suggested a more practical range of around 6-7 bps.
• SEBI also proposed excluding statutory levies, such as the securities transaction tax (STT) and stamp duty, from TER computation.

Demat Account Simplification for Financial Inclusion:

• SEBI proposed reviewing the eligibility criteria for the Basic Services Demat Account (BSDA) facility, which offers reduced demat charges for small investors.
• The proposal suggests excluding Zero Coupon Zero Principal (ZCZP) bonds from the portfolio value calculation used to determine BSDA eligibility.
• This is because ZCZP bonds are non-transferable and non-tradable, meaning counting their value could artificially inflate an investor's portfolio, making them ineligible for BSDA benefits.
• SEBI also proposed treating delisted securities on par with suspended securities for BSDA valuation, ensuring consistency since both lack transparent price discovery and active trading.

3. Legal Action, Corporate Fraud, and Intellectual Property Disputes

Settlement in Sterling Biotech Fraud Case:

• The Supreme Court (SC) approved a settlement allowing the quashing of all criminal proceedings against the fugitive Sandesara brothers (promoters of Sterling Biotech).
• The brothers must deposit ₹5,100 crore as a "full and final payment" to lender banks by December 17, 2025.
• The settlement clears them from cases filed by various central agencies including the CBI, Enforcement Directorate (ED), SFIO, and Income Tax Department, and proceedings under the PMLA and Fugitive Economic Offenders Act.
• Crucially, the SC order explicitly stated that the relief was due to the "peculiar facts and circumstances of this case" and "shall not be treated as a precedent". However, experts noted that this creates a potential legal pathway for other high-profile fugitives to seek similar settlements, depending on their negotiation leverage and ability to muster assets.

Enforcement Actions and Online Gaming:

• The Enforcement Directorate (ED) froze collective deposits worth about ₹523 crore belonging to online gaming firms WinZO and Gameskraft.
• The money laundering investigation alleges that these platforms engaged in "unscrupulous practices," including making customers play with algorithms without disclosure, and held funds (such as ₹43 crore by WinZO) that should have been refunded after the Union government banned real-money games (RMGs).

Intellectual Property and Patent Infringement:

• Two major Indian IT companies, TCS and Wipro, faced fresh patent violation lawsuits in US courts, signaling growing legal scrutiny on the sector.
• TCS was sued for allegedly using patented technology that privately changes software names.
• Wipro faced a complaint regarding infringement upon patents related to telecom services, specifically wireless testing and 5G product testing.
• Experts link this trend to the fact that Indian IT firms are moving deeper into higher Intellectual Property (IP) zones, such as cloud, platform, and AI-driven work.

Trademark Protection (Tesla vs. Tesla Power India):

• The Delhi High Court granted interim protection to Elon Musk-led Tesla Inc. against Gurugram-based Tesla Power India Pvt. Ltd. in a trademark infringement suit.
• The court barred Tesla Power from using the Tesla trademark/logo in any form for products like batteries and UPS systems until the case concludes, citing concerns that the local firm was misleading consumers by implying an association with the US electric vehicle manufacturer.

4. Labor and Social Security Reforms

Confusion over New Labor Codes:

• The rationalization of 29 legacy labour laws into four new Labour Codes, effective November 21, has created significant confusion in labor courts and tribunals.
• States, including Delhi, Tamil Nadu, and West Bengal, have yet to notify the requisite rules needed to implement the new statutes. As the old laws stand repealed, lawyers are struggling to determine how ongoing cases or new industrial disputes should proceed, effectively leaving labor courts in a "limbo".
• The lack of clarity is described as "avoidable confusion" after the laws were held in cold storage for four years without rules being framed or stakeholder discussions being held.

Impact of Labor Codes on Business Costs:

• The new codes mandate that e-commerce companies provide social security contributions for gig and platform workers. While some large players may already offer benefits, the implementation is expected to push up operational costs for food delivery aggregators and potentially affect demand in the short term.
• Changes to the definition of 'wages' and requirements for providing social security/health benefits to contract workers are expected to increase real estate and construction sector costs by 5-10 per cent.

5. Regulatory Policy in Tech, Trade, and Climate

Digital Data Protection and AI Governance:

• The Ministry of Electronics and Information Technology (MeitY) described the Digital Personal Data Protection (DPDP) Rules as offering a "liberal compliance window" of 18 months, facilitated by an entirely digital compliance process.
• MeitY asserted that the DPDP Rules do not dilute the Right to Information (RTI) Act, due to the public interest provision contained in Section 8(2) of the RTI Act.
• Regarding Artificial Intelligence (AI), the government is not currently inclined to legislate and regulate but stands ready if risks increase, noting that the DPDP Act permits further evolution of AI regulation.

Tax Policy: Fixing Inverted Duty Structures (GST):

• The GST Council is planning to expand its work on correcting the inverted duty structure—where tax on raw materials is higher than on the final product—which causes price skewing, capital strain, and annual refund claims estimated at ₹30,000 crore.
• Experts are urging that the refund mechanism for accumulated Input Tax Credit (ITC) be extended beyond input goods to include input services and capital goods to address working capital concerns for businesses.

Quality Control Orders (QCOs) Policy Reversal:

• The government is withdrawing Quality Control Orders (QCOs) that were previously imposed across sectors like textiles and chemicals.
• This policy reversal follows findings that QCOs, intended for quality, were misused as non-tariff barriers by large domestic firms to exclude competitors, ultimately hurting the competitiveness of India's labor-intensive, export-oriented sectors.
• The withdrawal of QCOs on raw materials is expected to improve input availability at lower costs, boost exports, and attract Foreign Direct Investment (FDI).

Infrastructure Project Oversight:

• The Minister of New and Renewable Energy announced a review, expected by January next year, of approximately 43.9 GW of Renewable Energy (RE) capacity that has been awarded but is languishing due to the failure of state-run distribution companies (discoms) to sign Power Sale Agreements (PSAs).
• In the telecommunications sector, the Department of Telecommunications (DoT) rejected a proposal to provide subsidies for high-cost satellite internet services in remote areas, maintaining that the relevant DBN funds are meant only for capital expenditure, not for subsidizing variable service costs.

The sources paint a picture of India's Global Trade and Diplomacy in November 2025 characterized by efforts to secure key trade agreements, navigate geopolitical sanctions and tariffs, address a widening trade deficit driven by bullion imports, and actively position India as a strategic economic partner, particularly in technology and clean energy.

1. Navigating Geopolitical Conflicts and Trade Deficits

Trade Imbalance and Import Surge: In October 2025, India's trade deficit more than doubled to $21.8 billion, up significantly from $9.05 billion in the same month last year. This deterioration was driven by a lackluster export performance and a sharp surge in imports.

A major factor contributing to the widening deficit was the dramatic increase in bullion imports:

• Gold imports nearly trebled to $14.7 billion.
• Silver imports saw a fivefold spike to $2.7 billion.
• This investment-driven accumulation of bullion risks reversing the financialization of savings and bloating the import bill.

Russian Oil Imports and US Sanctions: Despite the US sanctions against Russian oil companies Rosneft and Lukoil kicking in recently, India’s imports of Russian crude oil are unlikely to stop or reach "near zero".

• Indian refiners are expected to continue sourcing crude from non-sanctioned entities, although possibly in smaller quantities.
• The Indian government maintains that refiners are free to purchase from any source as long as sanctions are not breached.
• However, the sanctions have led to a drop in the price of Russia's flagship Urals crude, which is being offered to Indian refiners at the cheapest price in at least two years (a discount of as much as $7 a barrel to Dated Brent).
• Russian crude remained India's top supplier in November, but industry estimates anticipate a dip in imports in December and January as costs rise due to sanctions on major suppliers and shipping lines.

2. Trade Negotiations and Tariff Headwinds

US Tariffs and Trade Deal Uncertainty: The overall trade performance has been negatively affected by US tariffs.

• India’s lacklustre export performance in October was anticipated due to US tariffs in place and the bilateral trade deal remaining stalled.
• The spike in effective US tariffs is specifically weighing on the expansion of export-oriented manufacturing in India.
• S&P Global noted that while domestic growth remains robust, the tariff impact is "outsized" on certain labor-intensive sectors with high exposure to the US, such as textiles, gems and jewellery, and seafood.
• The US President, Donald Trump, has repeatedly suggested that a trade deal that lowers US tariffs on Indian goods would happen soon. Such a deal would reduce uncertainty and enhance confidence, which would boost labor-intensive sectors.

Canada FTA Restart: India and Canada are ready to restart negotiations for a bilateral free trade agreement (FTA), referred to as a high ambition Comprehensive Economic Partnership Agreement (CEPA), following its suspension in September 2023 due to escalating tensions.

• The goal is to double bilateral trade by 2030.
• Bilateral trade in goods and services reached $23.66 billion in 2024. Doubling this would result in approximately $30 billion in annual bilateral trade.
• Key focus areas for the partnership include critical minerals (like lithium, cobalt, graphite), clean energy, aerospace, defence capabilities, nuclear technology (specifically uranium supplies), and new-age technology like AI and quantum computing.
• India's strengths, such as having the world's largest pool of STEM graduates (2.4 million annually), position it as a strategic partner for Canada in AI and emerging tech.

India-EU FTA: The European Union (EU) is actively seeking to forge a broad global agenda in partnership with India.

• India and the EU are set to finalize a Free Trade Pact, a Defence Framework Agreement, and a strategic agenda at their annual summit scheduled for January 27.
• The FTA is expected to be a "living document" and is seen as crucial for deepening the relationship amidst global trade disruptions.
• Issues related to agricultural market access and alcoholic beverages have reportedly been resolved.
• However, the two sides are still seeking "landing zones" on contentious issues like steel, cars, and the EU’s Carbon Border Adjustment Mechanism (CBAM), which imposes tariffs on carbon-intensive products.

3. Boosting Export Competitiveness and Trade Policy Reforms

Quality Control Orders (QCOs) Reversal: The government is implementing a major policy reversal by withdrawing Quality Control Orders (QCOs) across sectors like textiles, chemicals, and plastics.

• The reversal aims to counteract QCOs' misuse as non-tariff barriers by large domestic firms, which previously restricted imports and hurt the competitiveness of labor-intensive, export-oriented sectors.
• The removal is expected to ease import curbs, ensure raw material availability at lower costs, make Indian products competitive, and ultimately boost exports.
• This move is also viewed as a reform for a freer market that could attract significant Foreign Direct Investment (FDI).

Correcting Inverted Duty Structures (GST): The GST Council plans to expand its work on fixing inverted duty structures (where tax on raw materials is higher than on the final product) across various industries, including railway parts, metal ores, and concentrates.

• Inverted duty structures lead to skewed prices and strained working capital for businesses, resulting in about ₹30,000 crore in annual refund claims.
• In the textile sector specifically, inverted duty structures and predatory dumping are cited as reasons why India’s share in global textile exports has stagnated at 3.9 per cent.
• Correcting these distortions, alongside timely imposition of provisional anti-dumping duties, is projected to help India double its global share in textile exports by 2030.

4. International Investment and Market Opportunities

Global Companies Favoring India: Global companies are increasingly looking to expand into the Indian market while some plan to reduce their presence in the US.

• 14% of CEOs surveyed are looking to expand into India, while 30% want to reduce their presence in the US region due to negative impacts of US policies on supply chain strategies.
• India is seen as the preferred new market because it combines four key ingredients: size, growth, youth, and digital readiness.
• The growing US and India economic and technology alignment makes long-term investments in India feel safer than in jurisdictions prone to sanctions or sudden crackdowns.

New Market Entries and Growth:

• Luxury Cosmetics: British cosmetics brand Lush is re-entering India after nearly three decades, viewing India as having the potential to be among its top 10 global markets by 2035 or 2040. Lush plans to set up a manufacturing plant in Bengaluru.
• Global Dairy Exports: India is emerging as an unexpected player in the global mozzarella market, driven by the competitive pricing and quality of buffalo-milk mozzarella. Exports surged over 1,200% year-on-year in the first half of FY26.
• Afghanistan Investment: Afghanistan's Minister of Industry and Commerce offered five years of tax breaks to Indian firms investing in new sectors like gold mining, and a tariff of only 1% on imported machinery to boost bilateral trade.

5. Export Performance in Key Sectors

Exports Facing Tariffs:

• Solar Panel Exports slumped sharply in September to their lowest point this year after US trade measures curbed shipments, forcing manufacturers to redirect supplies to the domestic market.
• Marine Sector Exports rose by 16.18% in April-October, largely driven by healthy growth in non-US markets (including China, Vietnam, Russia, Canada, and the UK), compensating for a dampening effect due to 50% tariffs on Indian marine products imposed by the US.
• Textile Exports have been impacted by US tariffs, which industry estimates suggest could affect almost one-fourth of India’s textile exports over the next six months.

Diplomacy in Practice: Commercial Space: ISRO is set to launch a US communication satellite using the Launch Vehicle Mark-III on a commercial basis in December, demonstrating India's growing role in the global commercial space market.

Overall Trade Outlook: The RBI noted that the economy is becoming more resilient to external shocks over time, with the external sector’s capacity to absorb shocks having improved amidst global trade policy uncertainties.

---

In essence, India is actively playing a challenging international game, much like a chess player navigating a complex mid-game: it is defending against powerful tariff attacks (US duties, CBAM) while simultaneously launching strategic diplomatic offensives (resuming talks with Canada, finalizing the EU FTA) and consolidating its domestic industrial position (QCO reversal, fixing GST inversion) to ensure long-term competitiveness in a shifting global landscape.

The sources provide a rich and dynamic overview of India's Sectoral Developments and Strategy in November 2025, emphasizing the transformative role of Artificial Intelligence (AI) and technology adoption, rapid growth and strategic changes in infrastructure and consumer goods, persistent struggles in traditional sectors like textiles and coal, and a burgeoning focus on inclusive entrepreneurship.

1. Technology, Digital Infrastructure, and AI Strategy

Digital Transformation and AI Integration: AI is driving significant adoption across Small and Medium Enterprises (SMEs) and large enterprises. Salesforce India notes strong demand, emphasizing that AI is helping SMEs adopt more business tech solutions. Digital labor and AI allow SMEs to access capabilities previously unaffordable, such as creating hyper-personalized marketing campaigns and scaling services.

Policy and Regulation for the Digital Economy:

• Data Protection: The Digital Personal Data Protection (DPDP) Rules offer an 18-month “liberal compliance window” facilitated by a fully digital process. Robust data privacy and user consent are considered "fundamental pillars for building trust and fostering secure innovation".
• AI Governance: The government is "not inclined to legislate and regulate" AI currently but stands ready if risks increase. The DPDP Act permits the future evolution of AI regulation. MeitY is hoping to unveil India’s sovereign large language models by the AI Impact Summit in February.

Investment in Frontier Technology:

• Venture Capital: Global VC firm Accel partnered with the Google AI Futures Fund (AIFF) to launch the 2026 AI Cohort, agreeing to co-invest up to $2 million in Indian founders building frontier AI companies. This collaboration positions India as a hub for AI-led innovation, focusing on themes like the future of coding, productivity, creativity, and entertainment.
• Semiconductors/Chips: Gujarat-based fabless start-up IndieSemiC plans to launch its fully-designed dual-AI system on chip (SoC) next year, targeting 5-10 million units over two years. The company aims to build the "most affordable chip" to match China on pricing for sectors like surveillance systems, drones, and automotive clusters.
• AI in Agriculture: AI is expected to drive India's "intelligent revolution" in agriculture, creating a third Green Revolution that is digital, data-driven, and human-centered. AI-enabled systems are projected to increase yields by 40–50% and create 50,000 rural jobs for data technicians and agritech entrepreneurs.

Data Centers and Infrastructure Finance: The data center (DC) sector is seeing an uptick in lending as capacity is projected to increase five-fold by 2030. Banks like Bank of India and Indian Bank are prioritizing loan proposals for data centers and renewable energy. The debt-funding structure typically involves 60–70% debt and 30–40% promoter equity for these projects, with loans often refinanced into lease rental discounting once leasing milestones are achieved.

2. Infrastructure, Manufacturing, and Energy

Adani Group's Accelerated Infrastructure Push: The Adani Group is executing an ambitious strategy, aiming to replicate decades of infrastructure development in a single year. The conglomerate reported record capital expenditure in the first half of FY26. Their debt metrics remain below the guided range despite doubling capital expenditure to ₹1.5 lakh crore.

Construction and Real Estate: The real estate and construction sector is expected to see baseline construction costs increase by 5–10 per cent due to the implementation of the new labor codes, which increase labor expenses. However, these enhanced welfare mandates are expected to ensure workforce stickiness, reducing attrition and driving long-term efficiency. Dilip Buildcon won a large ₹5,000 crore contract for the development and operation of Nalco's Pottangi Bauxite Mines. Sunteck Realty is expanding internationally, launching a ₹10,000 crore luxury residential project in Dubai and planning projects worth over ₹35,000 crore in the UAE over the next three years.

Automotive and Component Manufacturing: Auto component makers view hybrid vehicles as a new growth engine that can offset the slower-than-expected Electric Vehicle (EV) sales in developed markets. Hybrids offer higher value content per vehicle (including starter and traction motors) compared to both standard internal combustion engine (ICE) vehicles and even basic EVs. Hyundai Motor India plans to launch eight hybrids by FY30, estimating they will comprise 14% of India’s total car sales by that time.

Consumer Durables (ACs): Air-conditioner makers anticipate an uptick in sales in Q3 FY26 ahead of the implementation of new BEE star labeling norms from January 1. Prices of ACs are expected to rise by ₹2,000–3,000 per model due to these new norms and rupee depreciation.

Airline Sector Overhaul: Air India plans a major fleet and services upgrade in 2026, aiming to operate over 50 per cent of its international services with upgraded aircraft by end-2026. The CEO noted that the retrofit program, one of the world’s largest, has been delayed due to supply constraints. Rival IndiGo has seen its BluChip loyalty program gather over seven million members and is expanding its business-class product on routes like Mumbai-Phuket and Mumbai-Chennai.

3. Industrial and Commodity Sector Challenges

Textiles and Chemicals: India's share in global textile exports has stagnated at 3.9 per cent. The sector faces threats from predatory dumping (especially from China) and persistent inverted duty and GST structures. Correcting the inverted duty structure—for example, removing the 2.5 per cent basic customs duty on Dissolving Grade Wood Pulp—could attract ₹1,200–1,500 crore of new investment and help India double its global share in textile exports by 2030.

Metals and Mining: The Federation of Indian Mineral Industries (FIMI) urged the Finance Ministry to increase the import duty on aluminum to 15 per cent to protect the domestic industry from a surge in imports, particularly from China, Russia, and ASEAN nations. Global steel production declined 5.9 per cent in October 2025, led by a steep 12.1 per cent decrease in output from China.

Oil and Gas: Gujarat Gas Ltd (GGL) is shifting its strategy to compensate for a slump in its core ceramics business. GGL is betting on expansion into new industrial hubs and a strategic push into propane to regain customers lost due to commodity price volatility. This propane move is intended to complement, not replace, natural gas. India’s imports of Russian crude oil are unlikely to stop despite US sanctions on Russian oil companies, as refiners will continue to source from non-sanctioned entities, though quantities may decline in December and January.

Coal and Power Generation: Pan-India coal production and despatch fell for the second consecutive month in October 2025 (output down 8.5% year-on-year), largely due to lower demand from the power sector. This lower demand coincided with a 6 per cent year-on-year drop in India’s energy consumption. Despite this, coal still accounted for 67.21 per cent of India’s total power generation in October. The government is reviewing approximately 43.9 GW of Renewable Energy (RE) capacity that is currently languishing because state distribution companies (discoms) have failed to sign Power Sale Agreements (PSAs).

4. Consumer Goods, Retail, and Hospitality

FMCG and Luxury: Pidilite Industries expects demand for its products to remain resilient, although uncertainty lingers over exports due to US tariffs affecting pigment exports. Pidilite is carefully evaluating the business model before scaling its new Haisha Paint coatings range, which targets underserved rural and semi-urban markets. British cosmetics brand Lush is re-entering India after nearly three decades, targeting the fast-growing luxury beauty segment. Lush believes India has the potential to be among its top 10 global markets by 2035 or 2040 and plans to set up a manufacturing plant in Bengaluru.

Digital Payments and Consumption Trends: India’s consumption engine is performing well past the Diwali rush, with daily digital spending through UPI, cards, and wallets edging above October levels. UPI accounted for 94% of digital payments by value in November. This momentum is driven by discretionary spending (restaurants, shopping) and high-value purchases (electronics, IPO investments). GST rate cuts are expected to complement income tax cuts and interest rate reductions, supporting middle-class consumption.

E-commerce and Quick Commerce: The new labor codes mandate that e-commerce companies provide social security contributions for gig and platform workers. This is expected to push up operational costs for food delivery aggregators and potentially negatively impact demand in the short term. Eternal (formerly Zomato) sees Blinkit (quick commerce) as its primary growth engine, experiencing strong demand even in mature cities like Delhi.

5. Entrepreneurship and Social Focus

Disabled Entrepreneurs: A new narrative is emerging where disabled entrepreneurs (PwDs) are increasingly driving innovation. Over 1.5 lakh MSMEs are registered under the Divyang category, contributing significantly to the economy. If just 10 per cent of PwDs entered entrepreneurship, the economy could benefit by ₹4.5 lakh crore annually (nearly 1.5% of India’s GDP). However, mainstream banks remain hesitant to offer credit despite government schemes. Policy recommendations include explicitly targeting disability entrepreneurship in MSME policies and reserving a procurement quota for PwD-led enterprises.

Space and Film Industry:

• Space: ISRO is set to launch a US communication satellite using the Launch Vehicle Mark-III on a commercial basis in December. ISRO's Chairman projected that India’s space program will be on par with any advanced nation by 2040.
• Film: Jammu and Kashmir is promoting its J&K Film Policy 2024 to bring back film crews by offering financial incentives and single-window permissions. Officials are working to reassure the industry following a terror attack in Pahalgam, which caused production houses to postpone visits.

---

The overall sectoral strategy in India in late 2025 is marked by a dual focus: aggressive, often accelerated, investment in future-proof sectors like AI, Digital Infrastructure, and Green Energy, combined with significant policy efforts (such as GST fixes and QCO rollbacks) aimed at improving the cost competitiveness and export viability of traditional manufacturing industries like Textiles and Chemicals.

The sources highlight a significant and growing problem in India regarding Unclaimed Funds and the profound challenges faced by citizens in claiming their rightful corpus, placing this issue squarely within the national economic and policy conversation of November 2025.

1. The Magnitude and Nature of Unclaimed Funds

The policy focus has been reignited due to the growing magnitude of unclaimed funds lying with various entities. These idle funds are held across several custodians, including:

• Banks
• Provident Funds (EPFO, exempted PFs, and PPFs)
• Investor Education Funds
• Insurance companies
• Post offices

Massive Financial Scale: The total amount of these idle funds is huge, reported to be more than ₹2 trillion, with "many more trillions in the pipeline".

Specific Examples of Idle Funds:

• The Investor Education and Protection Fund (IEPF) of the Ministry of Corporate Affairs holds more than ₹1 lakh crore in funds and securities.
• For the Employees' Provident Fund (EPF), the estimated total fund size is ₹28 trillion.

2. Significant Challenges and Poor Claim Settlement Ratios

The accumulation of these funds is attributed directly to the poor claim settlement process and a systemic "negative approach" by almost all custodians of the money.

Low Claim Settlement Ratios:

• The subscriber claim settlement ratio of EPF, on average, is only about 70 per cent. Given that EPF has 8 crore subscribers and handles about 60 million annual claim requests, a 30 per cent rejection rate is described as "too scary".
• For the IEPF, the annual settlement of claims is about one per cent.

Anecdotal Evidence of Claiming Difficulties: The difficulty of claiming funds is illustrated through several detailed anecdotal experiences:

• Post Office Encashment: An individual attempted to encash National Savings Certificates (NSC) that matured in 2019. Two post offices initially refused the claim, demanding the claimant go to the "home post office" where the certificate was bought, despite website rules stating NSCs could be encashed at any post office. A third post office accepted it with reluctance, but the wait for encashment continued.
• Provident Fund Rejections (GPF and EPF):
  • Three decades ago, an application for advance from a General Provident Fund (GPF) was rejected outright by the head of the organization based on 13 "strange objections," even though the application was perfectly within the normal rules.
  • In 2024, an online application for withdrawal from an EPF account, submitted a month before retirement, was also rejected. The application for final settlement post-retirement was subsequently rejected on fresh, bizarre grounds. These actions were contrary to rules that encourage subscribers to withdraw 90 per cent of their funds in the last year of service.
• Nomination and Succession Hurdles (PPF): Even highly placed individuals struggled with bureaucracy when assisting successors. The author, a former Finance Ministry official, tried to help a genuine successor to a PPF claim whose original young claimant had died. Despite having explicit powers to waive nomination or succession certificates, the Joint Secretary (Budget) rejected the application, arguing that the person must obtain a succession certificate. This was done despite the fact that nomination was not mandatory when the instruments were bought, and the successor had already spent three years seeking the certificate.

3. Systemic and Attitudinal Problems

The fundamental cause of the unclaimed funds problem is seen as an attitudinal problem within the systems and their employees.

• Assumption of Ownership: Entities managing the funds often assume "ownership" and control of those funds, which is viewed as a serious issue and the "antithesis of contractual relationships".
• Focus on Negativity: The negative approach to returning money is based on the "wrong assumption and negativities of the systems".
• Vulnerability of Low-Income Workers: The author raises concern about subscribers at the lower levels of the job pyramid who lack the basic financial literacy and wherewithal to safeguard their rights compared to experienced professionals.
• Compulsory Savings Concern: Compulsory provident funds and pension schemes (like EPF) require special attention because subscribers have no choice but to contribute a significant portion of their salary (effectively 24% of the worker's salary). This mandatory contribution is problematic when there is uncertainty about accessing those funds at critical times.

4. Policy Response and Call for Systemic Change

A national campaign has been launched with the slogan "your money, your right," which aims to encourage original claimants or their successors to exercise their right to claim their money. However, the author finds the slogan confusing, as it "casts a doubt where there should be none".

The source emphasizes the need for major systemic changes:

• The process for retrieving funds—whether from banks, insurance companies, pension/PF authorities, or mutual funds—must be simple and consistently practiced by fund managers.
• The current "casual, rent-seeking approach" is actively sabotaging policy objectives and seriously harming millions of people.
• Unless this negative attitude is changed, the magnitude of unclaimed and idle funds will continue to mount, increasing doubts about whether one's funds are truly their right.

This situation contrasts sharply with the "pious objective" of ensuring every worker has bank accounts, meaningful corpus, insurance, and pension, if the mechanism for accessing that money remains dysfunctional.