Newspaper Summary 010226

 Based on the sources provided, here is the reproduction of the article regarding India's fiscal trajectory:

Fiscal prudence: India holds the line, others slip

CLEAR EDGE: Lower deficits and stable yields leave India better positioned compared to major economies. By Nishanth Gopalakrishnan, bl. research bureau

As the Finance Minister prepares to present the Budget for FY27, focus has shifted to the contrasting fiscal trajectories between India and other major global economies. While most major nations have tilted toward fiscal profligacy, India has embarked on a path of fiscal prudence.

India vs. the World

In general, the fiscal deficits of major developed economies are moderating from their 2020-21 peaks following pandemic-era stimuli; however, current deficit levels remain wider than those recorded immediately preceding the pandemic. For instance, Germany has moved from a budget surplus into a deficit.

By contrast, India’s fiscal deficit has contracted from 4.6 per cent of GDP in FY20 to a budgeted 4.4 per cent for FY26. This improvement is even more significant when considering that certain off-budget expenditures were rationalized and included in the fiscal deficit starting in FY22. On a like-to-like basis, India’s FY20 fiscal deficit would have been closer to 5 per cent of GDP, illustrating a clear improvement in the country's fiscal position.

From Deficit to Debt

Starting in FY27, India will pivot to using the debt-to-GDP ratio as the anchor for fiscal consolidation, moving away from the fiscal deficit to GDP metric. The Union government’s budgeted debt-to-GDP ratio for FY26 stands at approximately 55 per cent, compared with 50 per cent in FY20. The government has set a medium-term target to reduce this ratio to 50 per cent by FY31.

According to IMF data, while the debt-to-GDP ratios of the US, China, and the UK expanded sharply between 2019 and 2025 (by 16, 37, and 18 percentage points, respectively), India’s debt ratio rose by a modest 6 percentage points. Additionally, India's interest expenditure as a share of total outlay rose only 2 percentage points compared with FY20, whereas the US and UK saw increases in the range of 4-6 percentage points.

Bond Yields and Cost of Capital

The benefits of this consolidation are visible in stable sovereign yields. India’s 10-year sovereign debt yields remain broadly in line with end-2019 levels. In comparison, yields in the US and UK have become over twice and five times their previous levels, while Japan and Germany have swung from negative to positive territory.

India’s responsible governance has resulted in several macroeconomic achievements:

• Indian bonds have been included in multiple global bond market indices.
• Agencies such as S&P and Morningstar have upgraded India's sovereign credit rating to BBB from BBB-.
• Any decline in sovereign yields should lower the cost of capital for businesses, as their costs are directly or indirectly linked to the sovereign yield.

Future Resilience

Maintaining fiscal discipline positions India better to deploy stimulus measures in the event of another global economic shock. Advanced economies, currently constrained by elevated debt levels and significantly higher bond yields, may find their policy room far more limited in such a crisis.

Based on the source provided, here is the reproduction of the article detailing the five budget cues for investors to monitor:

5 Budget cues to look out for

HANDY GUIDE: With both income-tax and GST cuts done, investors need to look for five indirect signals that will impact them. By Aarati Krishnan

A few years ago, investors watched the Budget for direct goodies like income-tax breaks or excise duty cuts; however, with the transition to standardized capital gains tax rates and the new income-tax regime, the Budget now offers fewer direct benefits to taxpayers. While direct sops are gone, the Budget contains announcements that indirectly impact investments. Here are the five important cues investors should watch for in Budget 2026:

1. Deficit, Debt, and Bond Returns

Market interest rates are not determined solely by the Monetary Policy Committee (MPC); for debt investors, market demand and supply of bonds matter more than official repo rates,. As the government is the largest borrower in the Indian bond market, its borrowing plan sets the floor for all other yields. Investors should watch:

• The total borrowing number for FY27.
• Whether the FY26 fiscal deficit target of 4.4 per cent is met despite lower nominal GDP growth, currently expected at 8 per cent due to low inflation.
• The pivot to a government debt-to-GDP target as the anchor for fiscal consolidation starting in FY27.

The market expects a fiscal deficit target of 4.2-4.3 per cent for FY27; a higher number could spike bond yields and lead to price erosion in existing bonds,.

2. Capital Outlays by Sector

Post-Covid, the Central government has propped up the economy's investment leg, with capital expenditure rising from 2.6 per cent of GDP in FY20 to 4.3 per cent in FY26. However, growth in capital outlays may slow because:

• Cuts in income tax and GST have limited revenue growth.
• Rising revenue expenditure from Pay Commission awards and welfare spending may constrain capex.

Investors should check if the Centre plans to maintain its spending or "hand over the baton" to the private sector, specifically watching allocations for roads, railways, defense, and housing,.

3. PLI and Customs Changes

To neutralize threats from global trade wars and tariffs, the Budget may introduce Production-Linked Incentives (PLIs) and tariff countermeasures. PLIs act as zero-cost capital grants that significantly impact the fortunes of individual companies. Additionally, customs duty tweaks will reveal which sectors India is willing to open to friendly trade partners and where it is erecting barriers against hostile ones.

4. Pay Commission Awards

The Eighth Pay Commission, constituted in October 2025, is expected to submit its report soon, with recommendations taking effect from January 1, 2026. These once-in-a-decade revisions provide a substantial lift to the compensation of approximately 36 lakh Central government personnel, which often sets the floor for PSU, state government, and private sector salaries,. While a significant bloat in establishment expenses is positive for consumption stocks, it could have adverse implications for the fiscal deficit.

5. Duty on Gold and Silver

Surging bullion imports following the duty cut from 15 per cent to 6 per cent in 2024 have raised worries about the current account deficit and pressure on the rupee. While restoring higher duties would increase the Centre's Sovereign Gold Bond (SGB) obligations, it remains a critical signal to watch for the stability of the currency and the performance of precious metal ETFs,.

Based on the sources provided, here is the reproduction of the article regarding asset allocation and diversification:

Diversify, not “diworsify”

ASSET ALLOCATION: A lowdown on what investors should consider while investing in uncorrelated assets. By Rishabh Nahar, Partner and Fund Manager at Qode Advisors PMS

Investing is fundamentally a game of endurance; if you cannot stay in the game, you cannot win it, and diversification is what keeps you in. While often described as the "only free lunch," many investors turn that lunch into a buffet and end up with "indigestion" or “diworsify”. This term, coined by Peter Lynch, refers to reckless or inefficient diversification that adds excessive, unnecessary investments, increasing complexity and risk while reducing overall returns. The goal is to own a set of return drivers that do not all fail at the same time.

The Role of Correlation

A simple way to understand diversification is through correlation. If two assets move together, you have not diversified but doubled down; if they move differently, one can cushion the other. Importantly, correlation is not a constant and shifts during times of stress.

Using data from 2010 to 2026 across three building blocks—equity, gold, and bonds—the following was observed:

• Equity and Gold: These showed a negative correlation of -0.23, acting as a form of insurance against equity swings.
• Bonds and Equities: In this sample, bonds showed a very high positive correlation (0.99), meaning they did not behave as a classic shock absorber.

The Impact of Drawdowns

Diversification is clearly visible in drawdowns. Comparing a 100 per cent equity portfolio to a 60/20/20 mix (equity, gold, and bonds) from January 1, 2010, to January 20, 2026, the diversified mix delivered:

• A CAGR of 10.91 per cent (compared with 10.24 per cent for pure equity).
• Lower volatility (9.76 per cent vs 16.29 per cent).
• A smaller maximum drawdown (-22.59 per cent vs -38.44 per cent).

This smoother journey reduces the odds of a forced exit during bad markets.

How to Apply Diversification

To avoid turning a portfolio into a "museum," investors should follow these principles:

1. Diversify by risk factors: Instead of just increasing the number of holdings, focus on exposure to different cash-flow drivers like growth, inflation, interest rates, and liquidity.
2. Keep the core simple and robust: Build a sensible core allocation and rebalance regularly. Rebalancing harvests volatility by selling what has run up and buying what has lagged.
3. Accept that it will look "wrong" at times: In strong equity markets, gold and bonds can feel like dead weight, but they feel like the best decision during stressed markets.
4. Avoid "product-level" diversification: Simply owning more funds that hold the same equity risk in different wrappers does not help.
5. Match diversification to real-world liabilities: Your portfolio should reflect your life; for example, if your expenses are in rupees, domestic fixed income is relevant.

Conclusion

Diversification is humble investing. It replaces the hope of being perfectly right with the confidence of being roughly right and staying solvent. In markets, survival is the skill that makes compounding possible.

Based on the sources provided, here is the reproduction of the article regarding the Indian market index outlook:

Things are looking up

INDEX OUTLOOK: Any fall after Budget will be shortlived By Gurumurthy K, bl. research bureau

Nifty 50, Sensex, and the Nifty Bank index rose well from their supports last week. Nifty and Sensex were up 1.1 per cent and 0.9 per cent respectively, while the Nifty Bank index rose 1.95 per cent. While all eyes are on the upcoming Budget, the technical charts suggest that any post-Budget fall will likely be short-lived and should be viewed as a very good long-term buying opportunity.

Sectoral Performance and FPI Activity

The BSE Capital Goods index was the top performer last week, surging 7.9 per cent, followed by the BSE Power index, which rose 6 per cent. Conversely, the BSE Consumer Durables index saw the largest decline, falling 2.67 per cent.

Foreign Portfolio Investors (FPIs) continued their selling streak for a sixth consecutive week, though the quantum was lower, with a net outflow of approximately $257 million last week. The total net outflow for January reached $3.97 billion.

Nifty 50 (25,320.65)

• Short-term: Immediate supports are identified at 25,100, 25,050, and 24,900. Resistance stands around 25,620; a break above this could push the index toward 26,400. If the index slips post-Budget, it is not expected to fall beyond the 24,000-24,200 range.
• Medium-to-Long-term: The overall outlook remains bullish, with medium-term targets of 27,500-28,000 and long-term targets between 30,000 and 31,000.

Nifty Bank (59,610.45)

• Short-term: Support at 58,000 has held firm. The index faces resistance at 60,700, which it has a high chance of breaking to target 61,800-62,000.
• Medium-to-Long-term: The index is currently consolidating within an uptrend. Bullish targets remain 63,000-63,500 for the medium term and 68,000-69,000 for the long term.

Sensex (82,269.78)

• Short-term: Support is established around 81,000 with resistance at 83,000. A breach of this hurdle could lead to 83,600 or 84,300.
• Medium-to-Long-term: Sensex is targeted to reach 89,000-90,000 in the medium term and 98,000-99,000 in the long term. Crucial support is at 79,500.

Midcap and Smallcap Outlook

• Nifty Midcap 150 (21,490.90): Support at 20,800 held well last week. A strong break above 21,600 could lead to 22,150, and eventually 22,800-22,850, keeping the broader bullish view intact.
• Nifty Smallcap 250 (15,763.45): The index recovered well after an initial drop to 15,111.30. Immediate support is at 15,400, with resistance at 15,850. A break above 16,700 is necessary to signal a bullish trend reversal.

Summary of Near-Term Resistance

• Nifty 50: 25,620
• Sensex: 83,000
• Nifty Bank: 60,700

Based on the sources provided, here is the reproduction of the article regarding the US market outlook:

Road to nowhere

US MARKET OUTLOOK: Benchmark indices stuck within a range By Gurumurthy K, bl. research bureau

The Dow Jones Industrial Average, S&P 500, and NASDAQ Composite index have continued to trade within a sideways range over the last month. It is currently unclear if this represents a consolidation within a broad uptrend or a struggle to attract strong follow-through buying, necessitating a cautious stance. Because this sideways range has been prolonged, the eventual move in either direction after a breakout is expected to be swift.

Dow Jones (48,892.47)

The 48,430-49,635 range remains intact for the Dow Jones. A break below 48,430 would be negative, potentially dragging the index to 48,000 and eventually 47,500 in the short term. A decisive break below 47,500 would indicate a bearish trend reversal. From a broader perspective, the 51,000-51,400 region acts as a strong resistance zone where caution is advised.

S&P 500 (6,939.02)

The S&P 500 recently touched a high of 7,002.28 but failed to sustain the psychological 7,000 mark, keeping the 6,760-7,000 range intact. A sustained break above 7,000 is required to maintain the uptrend, while a decisive break above 7,100 is needed to see an extended rise to 7,400. Conversely, a fall below 6,900 could drag the index back to the lower end of its range at 6,760.

NASDAQ Composite (23,461.82)

The index rose to a high of 23,988.27 before giving away its gains. A sustained rise above 24,000 is necessary to gain bullish momentum for a potential rise to 26,000-26,500. As long as the index remains below 24,000, there is a danger of a bearish break below 22,900, which could drag the NASDAQ toward 21,500.

Dollar Index and Treasury Yields

• Dollar Index (97.15): The index witnessed an extended fall to 96 last week. It must breach the crucial resistance at 97.35 to move higher toward 98.50; failure to do so leaves it vulnerable to a fall toward 95.
• US 10Yr Treasury Yield (4.24%): The yield recently tested support at 4.2 per cent and is struggling to breach 4.27 per cent. The current broad trading range is identified as 4.2-4.35 per cent. In the big picture, the bias remains positive for the yield to eventually breach 4.35 per cent and move toward 4.6 per cent in the coming months.

Summary of Key Resistance

• Dollar Index: 97.35.

Based on the sources provided, here is the reproduction of the article regarding tax parity for bank deposits:

Deposits must Get Tax Parity with Equity Products: Setty

Seeking Equal Footing: Benefits given earlier are no longer justified in a mature equity market, says SBI chief. By Lijee Philip

State Bank of India (SBI) chairman CS Setty has called for parity in tax treatment between bank deposits and equity investments. He noted that higher taxes on deposits are making fund mobilisation difficult for banks as household savings increasingly flow into stock market instruments.

The Case for a Level Playing Field

Setty argued that while lower taxes for equity were perhaps justified in an "evolving equity environment," the markets have now matured and there should be a level-playing field for financial savings instruments. He further noted that globally, bank deposits are generally not given special treatment, but equity instruments are also not given special treatment in many other jurisdictions.

The Current Tax Gap

The disparity in tax rates is significant:

• Bank Deposits: Interest earnings are taxed as per the investor's tax slab, which can be as high as 30 per cent.
• Long-term Equity: Investments held for more than one year face a long-term capital gains tax of only 12.5 per cent on returns above ₹1.25 lakh.
• Short-term Equity: Gains are taxed at 20 per cent, along with a 0.001 per cent securities transaction tax (STT) on equity mutual funds.

Shift in Household Savings

The Economic Survey 2025-26 highlights a major shift in how Indians save. The share of deposits in household financial savings has dropped from 57.9 per cent in FY12 to 35.2 per cent in FY25. Conversely, the share of equity and mutual funds increased from approximately 2 per cent to over 15.2 per cent in the same period. This trend is supported by a seven-fold rise in monthly SIP flows, which grew from under ₹4,000 crore in FY17 to over ₹28,000 crore by late 2025.

Pressure on Banks

The lag in deposit growth is straining the ability of banks to fund long-term projects. As of January 26, the year-on-year deposit growth of 10.61 per cent was 237 basis points lower than the credit growth of 12.98 per cent. To manage this mismatch, banks are resorting to raising resources through short-term certificates of deposit (CDs) and open market operation (OMO) purchase auctions.

While the government brought debt mutual funds on par with fixed deposits in 2023 by removing tax arbitrage and indexation benefits, bankers are now demanding a similar equal treatment with equity savings to help mobilise deposits.

Based on the sources provided, here is the reproduction of the article regarding the impact of new labour reforms on gig economy platforms:

Labour Reforms Prompt Gig Firms for Compliance Push

GIG PLATFORMS FORCED TO RETHINK COSTS AND OPERATIONS, SOCIAL SECURITY By Prachi Verma, New Delhi

Employers of gig workers are consulting experts to assess the cost and operational impact of draft rules associated with four new labour codes. These companies are conducting internal readiness exercises and seeking advice from staffing agencies and law firms to ensure compliance, particularly regarding the new social security scheme for gig workers.

The Regulatory Landscape

The Ministry of Labour and Employment has notified draft rules for the Code on Wages, Code on Social Security, the Industrial Relations Code, and the Code on Occupational Safety, Health and Working Conditions. Stakeholders have been given 30-45 days to submit comments before the final rules are officially notified. Although the labour codes became effective on November 21, 2025, many provisions are still being clarified at the state level.

Corporate and Operational Response

Major players in the gig economy are already taking steps to adapt:

• Flipkart: A spokesperson confirmed the company is reviewing the codes and working with legal and HR experts on a detailed internal assessment.
• Quess Corp: CEO Lohit Bhatia stated that his firm has conducted 800 in-person meetings with clients in the gig, ride-hailing, e-commerce, and quick-commerce sectors since the codes were introduced.
• Strategic Delays: Some quick-commerce firms are revisiting their cost models and choosing to go slow with expansion plans while the social security provisions are fully operationalised.

Key Challenges for Platforms

Experts and practitioners have identified several primary hurdles for the industry:

• Implementation Complexity: Large enterprises operating across multiple states face a "limbo" because many states have not yet finalised their specific versions of the rules.
• Scale of Impact: The reforms will most heavily impact firms like Uber, Ola, Zomato, Swiggy, Urban Company, and Zepto, which together employ approximately 40 lakh gig workers in India.
• Registration and Awareness: There are significant gaps in worker registration and awareness that must be addressed.
• System Upgrades: Platforms are strengthening digital systems and internal processes to integrate the new legal requirements into their operating models.

Likely Outcomes

As the rules are clarified, platforms are expected to redesign contracts, terms of engagement, and compliance processes to account for the increased operational costs and the mandate for worker benefits. While some provisions regarding wages and safety are already established at larger firms, the social security provisions represent a significant structural change for the entire gig workforce model.

Based on the sources provided, here is the reproduction of the article regarding the rise of fitness-focused vacations:

Holiday Sweat

A growing number of people are bidding farewell to languid retreats and going for fitness-focused vacations. By Apoorva Mittal

Every other person seems to be on a health kick, and this trend is increasingly visible even on holidays. A niche group of travelers is saying goodbye to lazy brunches and languid sightseeing in favor of workout sweat. Instead of traditional spa retreats, individuals aged 30-45 are opting for fitness-focused vacations ranging from martial art camps to strength training getaways.

Purposeful Holidays

For many, these vacations are about reclaiming fitness after major life disruptions. Kaumudi Nookala, a 37-year-old software engineer from Hyderabad, sought a holiday that felt purposeful after Covid-related disruptions and motherhood. She signed up for a three-day session with The Burn Company, where she was introduced to:

• Mudgar: A traditional exercise using a wooden club.
• Animal Flow: Quadrupedal movement training.
• Kalaripayattu: A traditional martial art form.

The Burn Company, started by Febin Zachariah and Dixon Alex Mathew, has hosted nine such vacations focusing on primal movements, mountain biking, and “yoga-infused recovery”. Zachariah notes that about 95% of attendees are beginners.

The Driver: Longevity and Mental Wellbeing

The goals for these travelers are varied: some want to improve mental wellbeing, others want to create sustainable habits, and many are looking for a way to rebuild fitness after a long break. Niraj Kumar Borah, founder of HimalayanGurus, has worked with roughly 4,000 clients in locations like Shillong, Manali, Rishikesh, and Leh.

Borah states that people are thinking about longevity in practical terms: “They want to be able to lift grocery bags, push a trolley and move comfortably as they age”. They realize that building strength and endurance is essential to living well for longer.

International Hubs and Luxury Growth

For serious enthusiasts, international destinations like Phuket, Thailand—specifically the Soi Ta-iad area in Chalong—have become magnets. Known as the world’s densest fitness strip, it is packed with Muay Thai camps and CrossFit gyms.

While non-premium fitness holidays cost between ₹25,000 and ₹50,000 for a week, luxury versions can cost between ₹4 lakh and ₹8 lakh. This shift is reflected in the wellness tourism market, which reached a peak of $893.9 billion in 2024.

The New Status Symbol

Beyond health outcomes, fitness has emerged as a social signal. Toned arms are increasingly seen as a status symbol, reflecting the time, money, and intent required to invest in Pilates studios and specialized diets.

Michael Oszmann, director of Health Travel, has observed a 55% rise in inquiries for fitness retreats. Hotels are responding by offering purpose-driven programs, such as the Zamaya Fitness Resort in Tulum, Mexico, which offers functional training, recovery zones, and holistic nutrition. Even sports celebrities are getting involved, with tennis star Novak Djokovic recently hosting a retreat in the Atlantic Ocean.

Based on the sources provided, here is the reproduction of the article regarding the shift in the global and Indian labor markets:

The Age of Job Embrace

Employees have learned to stop quitting and love their jobs (even the toxic ones). By Lijee Philip

Until recently, the average employee was a free-range creature who viewed job-hopping as a personality trait and a sign of ambition. However, the "Great Resignation" has quietly been replaced by its anxious cousin, the "Great Embrace," or what consulting firm Korn Ferry calls "job hugging". Employees are now clinging to their roles like toddlers to parents in a crowded airport, preferring even familiar toxicity over the uncertainty of the external market.

The Statistical Shift

This reversal is a statistical reality rather than just an anecdote; in the US, the quit rate has hit its lowest sustained level since 2016. In India, attrition in the IT sector has fallen below 15%, the lowest in a decade. Furthermore, LinkedIn surveys show that for the first time in decades, Indian professionals are ranking "job security" above "career advancement". In the informal economy, which employs 80% of Indians, job hugging is not a trend but a survival strategy used when there is no safety net.

Drivers of Professional Monogamy

Several factors have created this sudden outbreak of professional monogamy:

• Economic Cooling: Higher interest rates and geopolitical whiplash have cooled the labor market from its post-pandemic "sugar rush".
• Fewer Options: The ratio of job openings to unemployed workers has halved since 2022, leaving workers with limited and often suspicious choices.
• Risk Aversion: Uncertainty acts as a sedative for risk-taking, leading workers to behave like bond investors who prioritize capital preservation over returns.
• Startup Collapse: The startup world shifted from "growth at all costs" to "survive at all costs," with over 30,000 startup employees laid off in 2023.

The Fear Factor

While employers might enjoy the calm of fewer exits and counter-offers, job hugging is often a "hostage situation" rather than a love story. When people stay because they are afraid to leave, innovation suffers, wages stagnate, and productivity flatlines. A workforce driven by fear tends to comply rather than experiment. Under these conditions, "quiet quitting"—the practice of doing exactly what is asked and nothing more—tends to flourish.

The Path Forward for Employers

Smart organizations must read this moment correctly to prevent the "great stay" from becoming the "great stagnation". If the external market is intimidating, companies should:

1. Build credible internal mobility to allow growth without exit interviews.
2. Invest in aggressive reskilling, especially as AI threatens to make current roles obsolete.
3. Redefine security as "employability" rather than just a salary.
4. Communicate clearly, as clarity is the rarest and most valuable benefit in uncertain times.

Though the pendulum will eventually swing back and resumes will once again "sprout wings," the current era reveals a workforce that stays not because it is inspired, but because it is afraid. Employers must give their people something stronger than fear to hold onto.

Based on the sources provided, here is the reproduction of the article detailing the surge in Systematic Investment Plan (SIP) contributions:

SIP Flows Rise 7x

SHIFT IN SAVINGS: Equity investments move from ancillary to significant components of household wealth.

The landscape of Indian household savings has undergone a dramatic transformation over the last decade, marked by a massive surge in systematic investment plan (SIP) contributions. According to recent data and the Economic Survey 2025-26, average monthly SIP flows have risen seven times, jumping from under ₹4,000 crore in FY17 to over ₹28,000 crore in FY26 (April-November).

Growth in Equity Participation

This rise in SIPs has fundamentally altered the composition of gross household financial savings:

• FY12: Equity and mutual funds accounted for only 2 per cent of savings.
• FY25: This share has expanded to over 15.2 per cent.

The Economic Survey observes that equity investments, which were once considered ancillary to household balance sheets, are now a significant component of financial wealth. This shift is attributed to broader participation and more diversified channels of access for retail investors.

Mutual Funds vs. Bank Deposits

The growth of the mutual fund industry is significantly outpacing traditional banking instruments:

• Growth Rates: Between FY20 and the first half of FY26, deposits with scheduled commercial banks grew at a CAGR of approximately 10.3 per cent, while mutual funds posted a 25 per cent CAGR.
• Assets Under Management (AUM): By the end of December 2025, mutual fund AUM reached ₹80 lakh crore.
• Total Deposits: Bank deposits stood at over ₹240 lakh crore as of September 2025, rising from ₹140.3 lakh crore in FY20.

Expanding Investor Base

SEBI Chairman Tuhin Kanta Pandey recently highlighted that India now has 13.9 crore unique investors, a vast increase from the 3.8 crore recorded in March 2019. Market participation is no longer confined to metropolitan centers, as evidenced by the rapid growth of the mutual fund industry's AUM, which has climbed from ₹12 lakh crore in FY16 to nearly ₹80 lakh crore today.

According to the sources, both restaurants and dentistry share a common origin as formal professions rooted in the extravagance of 18th-century French aristocratic life and its dramatic conclusion during the Revolution of 1789.

The French Revolution influenced the development of these two fields in the following ways:

Disruption of Aristocratic Patronage

Before the Revolution, the skills associated with fine dining and advanced dental care were almost exclusively reserved for the elite. The Revolution "solved" the oral health problems of the French aristocrats by executing them, which effectively eliminated the primary client base for these specialized professionals.

The Development of Dentistry

• Forced Professional Evolution: Prior to this era, Western dentistry was largely limited to tooth removal performed by barbers or blacksmiths. However, the high sugar consumption of the French commissioning class created a demand for more sophisticated solutions. Pioneers like Pierre Fauchard and Nicolas Dubois de Chémant developed false teeth made of porcelain and established the first oral health guidelines.
• Global Expansion: With their wealthy patrons dead or displaced by the Revolution, many French dentists were forced to seek new clients elsewhere. A significant number moved to the United States, which helped kickstart the American obsession with perfect white teeth.

The Development of Restaurants

• Evolution of the "Restorative": The term "restaurant" is traced back to a Paris cook shop established in 1765 that sold "restorative" broths.
• Transition to Public Service: Much like the dentists, the elite chefs and cooks who once served the aristocracy had to find new ways to practice their trade after the Revolution. This shift helped transform the "restorative" shop into the modern restaurant business we recognize today.

Ultimately, the two professions are linked by a simple functional reality: "Good eating needs good teeth". The social upheaval of the Revolution forced these once-exclusive services out of private estates and into the broader public sphere, establishing them as formal, modern professions.