Newspaper Summary - 261225

 The sources from December 26, 2025, highlight a transformative period for Indian aviation and infrastructure, defined by the operationalization of major new facilities, a aggressive push toward privatization, and record-breaking demand in the logistics sector.

Major Aviation Milestones

• Navi Mumbai International Airport (NMIA) Commences Operations: On Christmas Day, 2025, the Mumbai Metropolitan Region’s second airport formally opened. The first flight to touch down was an IndiGo Airbus A320 from Bengaluru, carrying 160 passengers. Built at a cost exceeding ₹19,650 crore, the airport aims to relieve pressure on the existing Mumbai airport and serve the connectivity needs of Thane, Pune, and Navi Mumbai.
• Initial Performance and Outlook: On its first day, NMIA handled 48 flights and approximately 4,000 passengers. While domestic operations have begun, international flights are expected to start in March 2026. Despite a smooth start, day-one passengers reported "teething problems" such as baggage delivery delays, patchy mobile networks, and water leakage near arrival area toilets.
• Delays at Noida International Airport: In contrast to Navi Mumbai’s launch, the Noida International Airport at Jewar has missed multiple deadlines and is now expected to begin flights only in 2026. The project is currently awaiting an aerodrome license from the DGCA and security clearance for its foreign CEO.

Airport Privatization and Policy

• Leasing of 11 Additional Airports: The Ministry of Civil Aviation has gained momentum in its plan to lease 11 more airports under the public-private partnership (PPP) model, including facilities at Amritsar, Varanasi, Bhubaneswar, Raipur, and Tiruchirapalli.
• The "Clubbing" Strategy: Under a new formula, the government is pairing major airports with minor ones to offer as a combined entity to prospective lessees through a bidding process. This initiative is part of the National Monetisation Pipeline (NMP-II), which proposes leasing a total of 25 Airports Authority of India (AAI)-operated airports.
• New Market Entrants: The government recently issued No-Objection Certificates (NOCs) to three proposed airlines: Shankh Air, Al Hind Air, and FlyExpress. However, experts note that receiving an NOC is only an initial step and does not guarantee the commencement of flights, as seen with Air Kerala, which received an NOC in 2024 but has yet to induct any aircraft.

Broader Infrastructure Developments

• Logistics and Warehousing Boom: Demand for industrial and logistics spaces hit an all-time high in 2025, with leasing volumes rising 19% to 76.5 million sq ft across 24 major cities. The manufacturing sector led this demand, accounting for 29% of the leased space.
• Railway Safety Outlay: The Centre is expected to announce a ₹1.3-trillion outlay for rail safety in the FY27 Union Budget, representing a 12% increase over the current fiscal year. These funds are earmarked for track renewals, rolling stock maintenance, and the expansion of the Kavach automatic train protection system.
• National Waterways: The Union Ministry has cleared seven national waterways in Maharashtra for development, totaling approximately 668 km of navigable length. This is intended to support integrated logistics hubs and improve coastal connectivity.
• Renewable Energy Infrastructure: Gujarat has unveiled three major clean energy policies—Integrated Renewable Energy, Pumped Storage, and Green Hydrogen—aiming to integrate solar, wind, and hybrid projects to reach 100 GW of renewable capacity by 2030.
• Road and Public Transport: While Chennai’s public bus service was recognized as the "City with the Best Public Transport System" due to its successful e-bus procurement and private investment model, road safety remains a concern in the region. A recent bus-truck collision on National Highway 48 in Karnataka resulted in six deaths, leading to calls for stricter safety standards for commercial vehicles.

Operational Disruptions

• IndiGo Flight Cancellations: On December 25, 2025, IndiGo cancelled 67 flights across multiple airports, including Bengaluru, primarily due to "forecasted" bad weather and the official winter fog window designated by the DGCA.

The sources from December 26, 2025, present an Indian corporate and industrial landscape in a state of "rationalization and recalibration," marked by a maturing startup ecosystem, aggressive regional expansions by established players, and significant shifts in labor dynamics within the public sector,,.

Startup Ecosystem and Funding Shifts

• Venture Capital Reset: Total VC funding in India for 2025 reached $9.94 billion, an 11% decline from 2024. Analysts view this as a healthy transition away from the "aberration" of zero-interest-rate-driven peaks toward a sustainable $10-billion base.
• The IPO Pivot: Mature startups are increasingly moving away from large private VC rounds in favor of public listings. Growth-stage companies such as Urban Company, Lenskart, and Meesho are preparing for IPOs to provide exits for their investors. The quick-commerce unicorn Zepto is set to pre-file its confidential draft red herring prospectus (DRHP) with SEBI for a potential 2026 listing,.
• Deeptech Milestones: Spacetech has emerged as a successful "proof point" for Indian deeptech, moving from "lab projects" to businesses with flight-tested hardware and credible economics,. This success is encouraging investment in other high-science sectors like semiconductors and robotics.

Corporate Expansion and Strategic Acquisitions

• Berger Paints’ Southern Push: The company is aggressively targeting Karnataka, Tamil Nadu, and Telangana to scale its dealer network, noting significant "headroom" in these historically weak markets,. They aim for a ₹20,000 crore revenue target by 2030 driven by decorative paints and industrial protective coatings,.
• Strategic Diversification:
  • Lenskart is investing ₹18.6 crore in the South Korean start-up iiNeer Corp to build proprietary in-house capabilities for manufacturing lens-cutting equipment,.
  • Deepak Fertilisers is acquiring a 100% stake in an explosives manufacturer to support the export of value-added products to its mining services in Australia,.
  • LT Foods is investing ₹6 crore in a new manufacturing facility in Raichur, Karnataka, to tap into the demand for regional rice varieties like Sona Masoori,.

Industrial Labor and Workforce Trends

• Public Sector Leaner Staffing: Data from the latest Public Enterprises Survey shows that Central Public Sector Enterprises (CPSEs) have cut approximately 30,000 regular jobs while adding over 54,000 casual and contract workers to rationalize wage bills,,.
• The AI Influence: While IT Secretary S. Krishnan suggests India faces a lower risk of AI-driven disruption due to its STEM-heavy white-collar workforce, major tech firms are already adapting,. Tata Technologies is moving to a "domain-led" strategy as AI blurs the lines between engineering and IT,.
• Premium Talent Demand: Despite a broader tech hiring slowdown, Infosys is offering specialized fresher roles with packages up to ₹21 lakh per annum to secure top technical talent for its AI-first model,.
• Gig Economy Friction: Delivery workers for platforms including Zomato, Swiggy, and Amazon have called for a nationwide strike on December 31, 2025, to protest deteriorating payouts and a lack of social security.

Regulatory and Fiscal Landscape

• Fiscal Advocacy: The Confederation of Indian Industry (CII) has proposed a four-point fiscal strategy for the FY27 Union Budget, focusing on debt stability, fiscal transparency, and revenue mobilization through AI-based tools for tax compliance,,.
• Regulatory Compliance: The FSSAI has issued strict warnings against misbranding, ruling that herbal or plant-based infusions cannot be labeled as "tea" unless derived from Camellia sinensis,. Meanwhile, Vodafone Idea (Vi) is facing cumulative GST penalties exceeding ₹80 crore across multiple states, which the company intends to contest,.

The sources from December 26, 2025, detail a government and policy landscape focused on fiscal consolidation, a fundamental shift in rural employment frameworks, and aggressive regulatory intervention to protect consumers and rationalize the labor market.

Fiscal and Economic Strategy

• Budget 2026-27 Proposals: The Confederation of Indian Industry (CII) has proposed a four-point fiscal strategy for the upcoming Union Budget, focusing on debt stability, fiscal transparency, revenue mobilization, and expenditure efficiency. Key recommendations include maintaining the Centre’s debt at 54.5% of GDP and using AI-based tools to expand the tax base by linking returns with high-value transactions.
• Taxation vs. Spending Debate: Analysts are weighing the merits of tax cuts versus direct expenditure. While income tax benefits and GST rate rationalization aim to raise disposable income, experts argue that direct government expenditure (like infrastructure and welfare schemes) is a more effective booster for development as it targets specific sections of society and generates immediate industrial demand.
• Monetization and Privatization: Under the National Monetisation Pipeline (NMP-II), the government is speeding up the leasing of 25 AAI-operated airports. A new "clubbing formula" is being used, where a major airport is paired with a minor one to make the bidding process more attractive to private lessees.

Labor and Rural Development Policy

• Transition from MGNREGA to VB-G RAM G: Parliament has passed the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, replacing MGNREGA. A major point of contention is the new 60:40 funding pattern, which requires States to bear 40% of the cost, potentially penalizing those with weak fiscal capacity.
• Workforce Casualization in CPSEs: Data from the Public Enterprises Survey reveals a policy of rationalizing the wage bill in Central Public Sector Enterprises. Over the last five years, regular jobs have declined while casual and contract hiring has surged, helping the government lower statutory payments like EPF and gratuity.
• Gig Economy and AI: New labor codes are being implemented that will require platform companies (like Zomato and Amazon) to allocate up to 2% of their annual turnover for the welfare and social security of gig workers.

Regulatory and Sectoral Interventions

• Consumer Protection: The Central Consumer Protection Authority (CCPA) is cracking down on coaching institutions, recently fining Vision IAS ₹11 lakh for misleading advertisements regarding toppers' results.
• Food Safety and Standards: The FSSAI has issued strict directives against misbranding. Specifically, it has ruled that herbal infusions cannot be labeled as "tea" unless derived from Camellia sinensis. Additionally, new norms are being introduced for "paneer analogues" (non-dairy substitutes) to ensure they are clearly labeled and do not mislead consumers.
• Higher Education Seat Caps: Authorities in Karnataka, Tamil Nadu, and Telangana are mulling an intervention to cap the number of computer science engineering seats. This is driven by a slowdown in tech hiring and a "herd mentality" that has led to an oversupply of graduates compared to core engineering fields.

Energy and Resource Policy

• Coal and Mining Reforms: The government approved the CoalSETU policy, allowing the non-regulated sector (steel, cement, etc.) to participate in auctions for long-term coal linkages (up to 15 years) without end-use restrictions, though resale within the country is prohibited.
• State-Level Energy Policies: Gujarat has unveiled three major clean energy policies—Integrated Renewable Energy, Pumped Storage, and Green Hydrogen—targeting 100 GW of renewable capacity by 2030 and attracting over ₹5.75 lakh crore in investments.

International Trade and Diplomacy

• Global Leadership: India is set to chair the Kimberley Process starting January 1, 2026, where it will focus on digital certification and transparency in the "conflict-free" diamond trade.
• Trade Agreements: India and New Zealand concluded a Free Trade Agreement (FTA) in record time (nine months), which will grant duty-free access to all Indian exports and facilitate $20 billion in investment over 15 years.

In the context of the BL Bangalore news from December 26, 2025, the Agriculture and Commodities sectors are characterized by a strong export performance in cash crops, significant regulatory shifts in food labeling, and the emergence of agtech solutions to address rural labor shortages.

Plantations and Cash Crops

• Record Coffee and Tea Performance: India’s coffee exports are expected to top $2 billion in 2025 due to a global supply shortage, with Arabica parchment prices perking up significantly. Similarly, the tea industry expects higher production (projected at 1,342 million kg) and exports, driven by strong demand from Iran, Iraq, and China.
• Spices and Cardamom Regulation: The Spices Board has taken strict action against rule violations, recently canceling the license of Cardamomauction.com for breaching marketing regulations. In the SME sector, Shyam Dhani Industries, a premium spice producer, saw a record-breaking IPO subscription, signaling high investor interest in the segment.

Staple Crops and Food Policy

• Regional Rice Expansion: LT Foods is investing ₹6 crore to set up a new facility in Raichur, Karnataka, dedicated to regional rice varieties like Sona Masoori and Kolam. This facility aims to tap into the high demand for premium non-basmati rice across South India and the global diaspora.
• PDS and Subsidy Reform: Analysts are advocating for a shift in the Public Distribution System (PDS) from grain delivery to Direct Benefit Transfer (DBT). The economic cost to the Food Corporation of India (FCI) for rice and wheat is high (reaching nearly ₹40/kg for rice), and experts argue that cash transfers could reduce the ₹69,108 crore lost annually to leakages and diversions.
• Global Market Volatility: On the Chicago Board of Trade (CBOT), wheat futures have risen due to hostilities in the Black Sea and severe cold in Russian wheat belts, which has also pushed corn and soy prices higher.

Agtech and Horticulture

• The "Urban Company" of Farming: Mumbai-based start-up Bharat Intelligence is using AI and WhatsApp to connect skilled farm workers with horticulture farmers in Nashik and Solapur. This platform addresses the lack of skilled farmhands and has already helped workers increase their daily earnings from ₹600 to ₹800.
• Specialized Research: A new Raisin Research Centre has been approved for Sangli, Maharashtra, to help local producers compete against imports (particularly from China) through improved R&D and processing standards.
• Neem Disease Crisis: Over 60% of neem trees in Telangana are currently battling "Dieback Disease," a fungal infection triggered by heavy monsoon rains that drains chlorophyll from the leaves.

Industrial Commodities and Mining

• Coal Market Overhaul: The government has introduced the CoalSETU window, allowing the non-regulated sector (steel, cement, etc.) to bid for 15-year coal linkages. Additionally, the National Coal Exchange is moving toward a double-sided closed auction mechanism to improve price discovery.
• Iron Ore Outlook: While Indian iron ore production is forecast to reach 290 million tonnes this year, global prices are expected to decline modestly through 2027 due to weakening world steel production and rising supply from Australia and Brazil.
• Critical Mineral Security: A parliamentary committee has recommended promoting "urban mines"—recycling minerals from waste like old batteries and electronics—to reduce India’s heavy reliance on imports for lithium, cobalt, and rare earths.

Dairy and Regulatory Oversight

• Dairy Export Muscle: India’s dairy exports surged to $490 million in FY25, and its share of the global milk supply is projected to rise to 32% in FY26. Amul has made significant strides by selling milk through Costco in the United States.
• Strict Misbranding Norms: The FSSAI has issued a stern warning that herbal infusions cannot be labeled as "tea" unless they are derived from the Camellia sinensis plant. Similar strict labeling and nutritional standards are being introduced for "paneer analogues" (non-dairy substitutes) to prevent consumer deception.

The sources from December 26, 2025, highlight a tightening regulatory environment and a complex legal landscape for Indian businesses, characterized by aggressive consumer protection, significant tax penalties, and a transition toward more flexible but controversial labor laws.

Consumer Protection and Food Safety Standards

• FSSAI Crackdown on Misbranding: The Food Safety and Standards Authority of India (FSSAI) has issued a stern directive stating that herbal or plant-based infusions cannot be labeled as "tea" unless they are derived from the Camellia sinensis plant. Violations are categorized as misleading practices under the Food Safety and Standards Act, 2006.
• Regulation of "Paneer Analogues": To protect consumers from non-dairy substitutes often sold during festivals, the FSSAI is introducing stricter norms for paneer analogues. These products must be sold in sealed packages, carry clear labels distinguishing them from dairy paneer, and meet specific nutritional parity standards.
• CCPA Action Against Coaching Institutes: The Central Consumer Protection Authority (CCPA) fined Vision IAS ₹11 lakh for misleading advertisements regarding the success of UPSC toppers. This is part of a broader initiative where 57 notices have been issued and penalties totaling ₹1.09 crore have been imposed on 28 coaching centers for unfair trade practices.

Corporate Litigation and Tax Penalties

• Vodafone Idea (Vi) GST Penalties: The telecom giant was hit with multiple penalties during the festival season, including ₹79.56 crore from Maharashtra state tax authorities and ₹3.58 crore from the Bengaluru CGST office. These demands relate to alleged short payments of tax and excess claims of input tax credit (ITC) from FY19 to FY23.
• Hexaware’s $500-Million Patent Suit: Hexaware Technologies has moved a U.S. court to dismiss a $500 million patent infringement lawsuit filed by Natsoft. Hexaware argues that the nine patents in question—which relate to application modernization and GenAI—cover "abstract ideas" and manual processes that are not patentable under U.S. law.

Labor Laws and the Gig Economy

• Shift in Contract Labor Regulation: The legal framework is transitioning from the Contract Labour Act of 1970 to the Occupational Safety and Health and Working Conditions Code (OSHWCC) of 2020. This new code liberalizes the employment of contract workers in "core" activities and raises the threshold for its applicability from 20 to 50 workers.
• Gig Worker Welfare: Under new labor reforms, platform-based companies like Zomato and Amazon will be required to allocate up to 2% of their annual turnover for a dedicated social security fund. This fund is intended to provide gig workers with benefits similar to those of the formal sector, such as provident funds and insurance.
• Judicial Oversight: Recent Supreme Court rulings, such as Shripal v. Nagar Nigam, Ghaziabad, have criticized the practice of public institutions hiring workers on temporary daily wages for sanctioned vacancies, affirming their right to regular appointment.

Financial and Trade Regulation

• SEBI and Market Oversight: Despite SEBI and stock exchanges doubling the minimum retail investment for SME IPOs to ₹2 lakh, investor demand remains at a "frenzy" level. Additionally, the National Coal Exchange is finalising rules for a double-sided closed auction mechanism to ensure transparent price discovery.
• NPS Rule Relaxation: The PFRDA has significantly relaxed National Pension System (NPS) exit rules, allowing full closure after 15 years and permitting subscribers to withdraw 80% of their corpus as a lumpsum, reducing the previous 40% mandatory annuitization requirement.
• International Compliance: Starting January 1, 2026, India will chair the Kimberley Process, focusing on digital certification and governance to ensure the global diamond trade remains "conflict-free".

Ola Electric received ₹366.78 crore in incentives under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components for the fiscal year 2025,.

The electric vehicle manufacturer received a sanction order from the Ministry of Heavy Industries for this amount, which is to be released through IFCI Limited, the designated financial institution for disbursement,. According to the company, these incentives pertain to the demand incentive for the determined sales value in FY25. Ola Electric stated that this sanction serves as an endorsement of its manufacturing capabilities and its efforts in scaling domestic production and deepening localization across the electric mobility value chain.

India’s petrol pump network has recently crossed the 100,000-mark, reaching a total of 100,266 operational outlets at the end of November 2025. This milestone represents a doubling of the network since 2015, when there were only 50,451 stations across the country. This rapid growth has made India’s fuel retail network the third largest in the world, trailing only the United States and China.

The vast majority of these pumps—over 90%—are owned by state-owned firms, including Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL). Despite this dominance, the private sector's footprint is expanding, now accounting for 9.3% of the total market compared to 5.9% in 2015. Among private retailers, Nayara Energy (backed by Russia’s Rosneft) is the largest with 6,921 outlets, followed by the Reliance-BP joint venture with 2,114 stations and Shell with 346 outlets.

This massive infrastructure push has been driven by state-owned fuel retailers aggressively expanding to defend their market share and extend fuel access deeper into rural areas and highway corridors to keep pace with the ongoing boom in domestic vehicle ownership.

Under the transition from the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) to the newly passed Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, several states are highlighted for their varying levels of participation, effectiveness, and fiscal impact.

The sources identify specific states in the following contexts:

States with High Implementation and Usage

• High Performance: The states that have done well in terms of implementing job guarantee programs include Chhattisgarh, Telangana, Mizoram, Sikkim, and Tripura.
• Study Group: A research study sourced from NITI Aayog focused on a specific group of states receiving these benefits: Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Jammu and Kashmir, Karnataka, Kerala, Odisha, Punjab, Rajasthan, Tamil Nadu, West Bengal, Meghalaya, Tripura, and Uttarakhand.

States with Poor Usage or Low Demand

• High Poverty/Low Usage: Despite having a high incidence of poverty, states like Bihar, Uttar Pradesh, and Madhya Pradesh show a lack of usage of available funds.
• North-Eastern Laggards: Among the North-Eastern states, Arunachal Pradesh and Manipur have not performed well in providing work under the scheme.
• Low Demand in Wealthy States: Relatively rich states such as Punjab and Haryana show low interest in the scheme because the demand for such work is naturally lower.

Fiscal Impact on Large States

Under the new VB-G RAM G funding pattern, the cost-sharing between the Centre and States has shifted from 90:10 to 60:40. This change places a significant additional financial liability on states with high participation rates. The five states projected to see the highest increase in spending are:

• Uttar Pradesh: ₹4,240 crore.
• Andhra Pradesh: ₹3,269 crore.
• Tamil Nadu: ₹3,211 crore.
• Bihar: ₹2,854 crore.
• Madhya Pradesh: ₹2,710 crore.

Impact on Wages

The effectiveness of the scheme in raising local market wages varies. Industrially backward states like Jammu and Kashmir, Odisha, and West Bengal reported that the scheme successfully increased market wage rates for unskilled workers. Conversely, industrially advanced states such as Andhra Pradesh, Telangana, Tamil Nadu, and Karnataka saw no drastic improvement in market wages, as these regions have alternative industrial bases and often use funds for heavy machinery rather than direct manual labor payments.