Newspaper Summary - 150126

 

Retail investor pullback hits discount brokers as demat account addition slows

Discount brokerage houses are experiencing a visible cooling of retail participation as investor sentiment is weighed down by volatile equity markets, weaker returns in mid- and small-cap stocks, and growing fatigue. Data from calendar year 2025 indicates a sharp slowdown in the addition of demat accounts and a decline in active trading clients.

Slower Account Growth

According to combined data from NSDL and CDSL, approximately 3.06 crore demat accounts were added in 2025, representing a drop of nearly 33 per cent from the roughly 4.6 crore accounts added in 2024. This represents the first annual decline in new demat additions in several years, signaling a pause in the rapid retail expansion seen post-Covid.

Despite this slowdown, the overall demat base continued to grow, reaching a total of over 21.5 crore accounts by the end of December 2025. Of this total, CDSL accounted for about 17.3 crore accounts, while NSDL held approximately 4.3 crore.

Falling Active Client Counts

Data from the NSE and BSE for December 2025 show that active client counts across brokers fell on a year-on-year basis. Total active clients declined to around 4.5 crore in December, compared to over 5 crore a year earlier. Several large discount brokerages reported net client losses during the latter half of 2025.

Industry executives note that retail participation has become highly sentiment-driven. When markets fail to move decisively, a large segment of small traders tends to go inactive. This churn is most visible among investors who entered the market during a bull phase with expectations of quick gains; once mid- and small-cap stocks corrected and volatility increased, their activity levels dropped sharply.

Market Trends and Stabilisation

While demat additions remained subdued for most of 2025, early signs of stabilisation emerged toward the end of the year. In the last one to two months of the year, additions recovered to approximately 31.75 lakh a month, which is close to the levels seen in 2024.

Broader trends throughout 2025 showed that while episodic events like IPOs and sharp market rallies caused short-term spikes in account openings, they were insufficient to offset the general cooling trend. Furthermore, participation in both cash equities and derivatives softened intermittently, placing additional pressure on brokers.

Metros witness a decline in bank deposits, credit growth in H1 FY26

Financial management preferences among Indian households are undergoing a significant shift, according to a State Bank of India (SBI) Research report titled ‘Indian Banking Sector: A Trend Analysis’. During the first half of FY26 (April-September), the growth of incremental deposits in scheduled commercial banks (SCBs) within metro cities contracted by 34 per cent to ₹3.4 lakh crore year-on-year (y-o-y). During the same period, credit growth in metros contracted by 14 per cent to ₹3.6 lakh crore y-o-y.

Shift Toward Riskier Investments

The decline in deposit growth in metropolitan areas appears to be driven by a growing preference among city dwellers for mutual funds, direct stock investing, and other riskier investment vehicles. Additionally, urban residents are increasingly looking beyond traditional scheduled commercial banks to NBFCs and fintech lenders to satisfy their financing requirements.

Metros Remain the System's Backbone

Despite the loss in incremental share, metros remain the backbone of India’s banking system, holding 42 per cent of total deposits and approximately 48 per cent of nationwide credit at the end of H1 FY26. However, the slowing growth in these urban centers was a primary factor in the 6 per cent overall decline in bank deposits across India in the first half of the fiscal year.

Growth in Semi-Urban and Rural Areas

In contrast to the contraction seen in metros, other regions experienced a significant jump in activity.

• Semi-urban areas: Bank deposits grew by 68 per cent on-year, reaching ₹1.7 lakh crore, while bank credit increased by 20 per cent to ₹1.3 lakh crore.
• Rural areas: Bank deposits increased by 40 per cent to ₹98,000 crore, while bank credit jumped 28 per cent to ₹82,000 crore.

Vivek Iyer of Grant Thornton Bharat noted that these trends reflect a structural shift, indicating that economic growth is becoming more broad-based and is increasingly driven by populations beyond traditional urban settings.

Regional Variations: Rajasthan and West Bengal

The transition has been uneven across different states. In Rajasthan, several semi-urban districts saw a simultaneous decline in both deposits and credit, although Jaipur recorded significant growth that offset these declines. Experts suggest that strong local business acumen led residents there to move money out of bank deposits and into capital markets to capitalize on market volatility. Similarly, in West Bengal, households appear to be moving away from traditional bank deposits in favor of financial markets.

Exports to China rise 9.7% in 2025 but trade deficit touches a record high of $116 billion

India’s exports to China bucked a recent declining trend in 2025, posting a $5.5 billion increase compared to the previous year. According to annual trade data released by Chinese customs, Indian outbound shipments climbed to $19.75 billion between January and December, representing a 9.7 per cent increase.

Record Bilateral Trade

Total bilateral trade between the two nations surged to an all-time high of $155.62 billion in 2025. This growth occurred during a year in which both countries faced tariff hikes imposed by US President Donald Trump.

Widening Trade Deficit

Despite the rise in Indian exports, the trade deficit remains a persistent issue, reaching a record high of $116.12 billion. This is the second time the deficit has crossed the $100-billion mark since 2023. The widening gap was driven by Chinese exports to India, which increased 12.8 per cent to $135.87 billion last year.

In comparison, the 2024 trade deficit was $99.21 billion, with Chinese exports totaling $113.45 billion and Indian exports stagnating at $14.25 billion.

Reporting Cycles

The figures provided are based on China’s annual trade data, which covers the calendar year from January to December. In contrast, India typically releases its official trade figures based on the fiscal year running from April to March.

India and the next Kondratiev wave

Every few decades, the global economy undergoes a decisive reshaping as new technologies rise and old industries fade. Nearly a century ago, economist Nikolai Kondratiev identified these periods as long waves of growth, typically lasting 40-60 years and propelled by transformative technology clusters. As the digital economy matures and a new set of frontier technologies converges, a new wave is taking shape, and this time, India appears well positioned to ride it.

The History of K-Waves

History supports Kondratiev’s insights through five distinct waves:

• First Wave (1780-1830): Propelled the industrial revolution via steam power and textile mechanisation.
• Second Wave (1830-1880): Built on railways, iron, and coal.
• Third Wave (1880-1930): Centred on electrification and chemicals, enabling modern R&D and mass production.
• Fourth Wave (1930-1980): Dominated by automobiles and petrochemicals, which reshaped mobility and geopolitics.
• Fifth Wave (1980-2030): Driven by information technology and automation, creating the digital economy.

Countries that aligned early with these waves prospered, while those that lagged were forced to adapt. India's engagement has been uneven; it was peripheral during the first three waves and marginal in the fourth. While India was a partial beneficiary of the fifth wave through software and IT services, it rarely shaped the frontier technologies themselves.

The Sixth Wave: Deep Tech Convergence

The anticipated sixth K-wave, expected to gather momentum beyond 2030, will be driven by digital deep technologies. This includes artificial intelligence (AI), quantum computing, biotechnology, advanced materials, space systems, and clean energy. Unlike previous cycles, these technologies are convergent; for example, AI is currently accelerating drug discovery and manufacturing optimization.

While earlier waves were driven by private capital responding to market demand, the sixth wave will hinge on mission-mode outcomes. Global imperatives like climate change, health security, and energy transition mean that public digital infrastructure, regulatory foresight, and ecosystem coordination now matter as much as entrepreneurship.

India’s Moment and Early Signals

India is already showing early signals of readiness through its digital public infrastructure. The Unified Payments Interface (UPI) processed approximately 228 billion transactions in 2025, functioning as a general-purpose economic rail for everything from daily payments to AI-driven credit analytics.

Other sectors are also showing signs of a transition:

• Space Sector: Previously government-led, the sector has opened up via IN-SPACe, allowing private firms to enter launch services and satellite manufacturing.
• Clean Energy: India is pushing green hydrogen to build integrated industrial value chains. Early signals include hydrogen production projects in Haryana and India’s first hydrogen-powered train prototype.

Four Factors for Success

India’s ability to ride this wave will be determined by four critical factors:

1. Institutions: Establishing translational platforms that connect research to industry, signaled by the creation of the Anusandhan National Research Foundation (ANRF) and the ₹1 lakh crore Research, Development and Innovation (RDI) Fund.
2. Patient Capital: Financing that aligns with long-horizon investment cycles rather than short-term returns.
3. Human Capital and IP Systems: Developing talent and credible intellectual property regimes to sustain knowledge accumulation.
4. Governance and Standards: Shaping emerging global mechanisms, such as AI safety norms and hydrogen certification.

If policy, capital, and institutions align to these long cycles, deep tech could write the next chapter of India's economic story, with success measured by whether these technologies are embedded in the national infrastructure by 2047.

OPEC wants a rethink of label ‘fossil fuel’

Narrative shifting to “energy addition” from “energy transition” By Richa Mishra

Last month, on December 15, 2025, OPEC Secretary General Haitham Al Ghais authored a piece questioning whether the "fossil fuel" label requires a rethink, arguing that precision in terminology is fundamental to science and current energy discourse. He contended that the widely used term falls short of precise scientific standards when applied to crude oil.

The Argument for Imprecision

Al Ghais highlighted three factors that demonstrate the term's inaccuracy:

• The word ‘fuel’: Al Ghais noted that crude oil is rarely used directly as a fuel. Instead, it is refined into thousands of products, many of which are not fuels, and are utilized in nearly every economic sector and stage of daily life. To define oil only as a fuel mischaracterizes its use. Furthermore, OPEC’s World Oil Outlook 2025 predicts the petrochemical industry will be the single largest contributor to global incremental oil demand growth through 2050.
• The origin of the term: Scientifically, fossilization involves organic matter being set in stone and preserved, whereas the formation of oil involves organic matter being "cooked" and transformed into a liquid state.
• Scientific Rigour: Al Ghais questioned if such generic, ambiguous terms are compatible with the scientific precision demanded in climate change discussions regarding the world's energy future.

Reactions to the Proposed Nomenclature Change

Experts in the field have expressed skepticism regarding the impact of such a change:

• Tracy Schuchart, Senior Economist at Ninja Trader Live, argued that changing the name would not meaningfully shift the narrative because the underlying objection is centered on carbon emissions and climate impact, not the word "fossil" itself.
• Lauri Myllyvirta, co-founder of the Centre for Research on Energy and Clean Air, pointed out that Al Ghais failed to propose an alternative term or address the core issue: that these energy sources involve mobilizing fossil carbon. He did concede that oil's "non-energy use" is increasingly important and suggested a term like "fossil fuels and feedstocks" might be more accurate. He also noted that the focus on "fossil vs. non-fossil" has allowed high-carbon bioenergy and biomass to receive an "easy pass" despite their air quality and carbon footprints.
• Narendra Taneja, an energy expert, dismissed the suggestion as a narrative-building exercise by the OPEC cartel intended to facilitate maximum profit for oil producers.

Broader Policy Context

While OPEC questions these labels, US President Donald Trump’s policy toward the fossil fuel and petrochemical industries focuses on an "energy dominance" agenda. This plan is aimed at achieving dominance through deregulation, increased domestic production, and tax incentives.

‘2025 was the third hottest year on record’

2025 ranked as the third hottest year on record, extending an unprecedented stretch of global warming, according to data from Copernicus. Temperatures stayed close to recent peaks, pushing the three-year average beyond the 1.5°C threshold, which underscores the acceleration of climate change driven by human emissions and ocean-atmosphere variability.

Warming Thresholds and Records

The findings, released by the European Centre for Medium-Range Weather Forecasts (ECMWF), confirmed that the past 11 years have been the 11 warmest on record, and ocean heating continues unabated. According to the World Meteorological Organization's (WMO) consolidated analysis of eight datasets, the global average surface temperature in 2025 stood at 1.44°C above the 1850–1900 baseline. While six datasets placed 2025 as the third warmest, two ranked it as the second warmest in the 176-year record.

In 2025, the global surface air temperature averaged 1.47°C above the pre-industrial level, following 1.60°C in 2024, which remains the warmest year on record. The current level of long-term global warming is now estimated to be around 1.4°C above pre-industrial levels.

Drivers of Extreme Heat

WMO Secretary-General Celeste Saulo noted that 2025 remained exceptionally warm despite starting and ending with a cooling La Niña. These high temperatures continue to fuel extreme weather events, including heatwaves, heavy rainfall, and intense tropical cyclones.

The report identified two primary reasons for the exceptional warmth of the 2023–2025 period:

• The accumulation of greenhouse gases, driven by high emissions and a reduction in carbon dioxide absorption by natural sinks.
• Unusually high sea-surface temperatures across the oceans associated with El Niño and other factors amplified by climate change.

Additional influences included variations in atmospheric circulation, changes in aerosol concentrations, and low-cloud cover.

Secured military drone framework nears final Defence Ministry nod

A comprehensive framework designed to secure India’s indigenous military drone ecosystem is in its final stages. Once finalized, it will be a binding document for the industry, aimed at checking the illegal use of Chinese components in the manufacturing of unmanned systems.

Drafting and Approval Process

The framework was drafted by the Army Design Bureau (ADB) following investigative reports that exposed domestic manufacturers using Chinese software elements while labeling their products as "Make in India". The document was cleared by the Director General (Acquisition) on Tuesday and has been forwarded to Defence Secretary RK Singh. Following his clearance, it will be sent to Defence Minister Rajnath Singh for the final nod before being made public to stakeholders.

Technical Safeguards and Testing

The framework is a modified version of OSWASP 4.0, the international standard for testing security vulnerabilities in hardware devices. It mandates more than 30 tests from accredited labs to ensure the integrity of indigenous drones. Specific testing will be conducted by:

• STQC IT Services
• ETDC Bangalore
• Ministry of Electronics and Information Technology

The primary focus is testing software and code elements to ensure military drones cannot be hacked or relay information to unauthorized entities.

Context and Implementation

The urgent need for this framework was highlighted by security incidents, including reports that scores of Indian drones were hacked by the PLA during the Galwan face-off with China. Similar vulnerabilities were noted during Operation Sindoor and along India’s northern and western borders.

The new policy will be applicable across the entire tri-services. It will govern the drone acquisition process from the earliest stages—including the Request for Information (RFI) and Request for Proposal (RFP)—and remain in effect through post-contract management.

Dragon Gobbles Up Tariffs for Record $1.2 Tn Trade Surplus in ’25

China's goods trade surplus surged to a record high of nearly $1.2 trillion in 2025, crossing a symbolic threshold despite significant global headwinds. While shipments to the United States slowed under President Donald Trump's higher tariffs, Chinese manufacturers successfully expanded into alternative markets to maintain growth.

Export Resilience and Market Rerouting

Bilateral trade data indicates that China's exports to the US fell by approximately 20% in 2025, with year-on-year declines in December exceeding 30%. However, total Chinese exports for the year still rose 5.5% to reach $3.77 trillion, while imports flatlined at $2.58 trillion.

This resilience was driven by a strategic system-level adjustment where Chinese firms aggressively rerouted shipments toward third markets. Key growth areas included:

• Africa: Exports rose by more than 25%.
• ASEAN: Exports increased by over 13%.
• European Union: Exports grew by 8-12%.

Additionally, US final demand was increasingly satisfied indirectly through Southeast Asian assembly hubs and other intermediaries, and Chinese firms accelerated the establishment of overseas production facilities to arbitrage tariff regimes.

Sectoral Performance

The strongest export growth was seen in capital-intensive and tech-embedded sectors.

• Automotive: Surge of 21% in 2025, reaching more than 7 million units, driven by electric vehicles (EVs) and plug-in hybrids. EV shipments alone rose nearly 50%.
• Industrial Goods: Exports of ships, heavy machinery, and semiconductors grew by over 20%.
• Electronics: This remained the largest export category, rising 8.4% from the previous year.
• Traditional Sectors: Labor-intensive industries such as apparel, footwear, and toys either stagnated or contracted.

The Savings-Investment Imbalance

Analysts suggest China's surplus is fundamentally driven by a domestic savings-investment imbalance rather than just export prowess. Household consumption in China remains depressed at approximately 38% of GDP, significantly lower than the 55-70% range seen in advanced economies. High precautionary savings are fueled by a weak social safety net and insecurities surrounding healthcare, old age, and a prolonged property market collapse. Consequently, exports have become a "pressure valve" to reconcile weak internal consumption with an extraordinarily high investment rate of 40% of GDP.

Strategic and Geopolitical Consequences

China's manufacturing surplus now exceeds 10% of its GDP and accounts for about 1% of global output. This dominance in strategically sensitive segments, such as rare-earth processing (where China held a 92% global share in 2024), has introduced national security dimensions to the trade debate. While the surplus serves as a macroeconomic crutch to sustain employment and stabilize growth, it has created a "trade-surplus trap," making China increasingly dependent on foreign demand to maintain internal stability while fueling global protectionism.

US-IRAN SPAT COULD HURT BEYOND TRADE

While India’s trade with Iran is currently minimal, President Donald Trump’s threat of a 25 per cent tariff on countries trading with Tehran and the possibility of US military intervention may threaten India’s strategic investment in the Chabahar Port and cause significant volatility in oil prices.

Shrinking Trade and New Tariff Threats

India and Iran have historically shared close trade ties, but the relationship has been constrained by US sanctions since the Trump administration initiated a "zero-oil" mandate in 2018. Consequently, India’s imports from Iran collapsed from $12.3 billion in FY19 to just $70 million in FY25. Despite these limited trade volumes, the new threat of a 25 per cent duty on countries still trading with Iran adds a layer of uncertainty for Indian importers.

While fresh fruit importers remain steady, the dry fruits industry is highly apprehensive. Leaders in the nuts and dry fruits sector note that economic turmoil and protests in Iran could significantly affect imports of pistachios, dates, saffron, almonds, and raisins.

Strategic Risks at Chabahar Port

The most significant concern lies in India's investment in Iran’s Chabahar port, a project designed to bypass Pakistan and access Afghanistan and Central Asia. Currently, India operates the Shahid Beheshti terminal through India Ports Global Limited (IPGL).

• Capacity and Throughput: The terminal has an annual cargo-handling capacity of 8 million tonnes, though throughput has hovered around 2.2 million tonnes annually.
• Sanction Status: The project is currently exempted from US sanctions until April 2026, but the latest development adds substantial uncertainty to its future expansion.
• Long-term Commitment: In 2024, India signed its first long-term 10-year agreement to operate Chabahar and pledged $120 million for operations, alongside an additional $250 million for infrastructure support.

Oil Price Volatility and Global Disruptions

Iran is the fourth largest producer in OPEC, and the prospect of further instability has already caused Brent crude prices to jump. Markets are pricing in potential disruptions to the Strait of Hormuz, a vital choke point which Iran controls and through which 20 per cent of the world's oil flows.

Barclays has noted that the market has added a $3-4 a barrel risk premium due to these tensions. Additionally, risk premiums for cargo ships in the region have tripled, rising from 0.2 per cent to 0.7 per cent.

Escalating Internal Unrest

Iran is currently experiencing its most serious wave of internal unrest and economic instability in years, characterized by nationwide protests and high inflation. The US has signaled potential intervention, with Trump using social media to address Iranian protesters with the message that "help is on the way."

In response to the intensified protests and a complete shutdown of telecommunications in Iran on January 8, India has issued a fresh advisory for its nationals to leave the country by any available means. Meanwhile, SpaceX’s Starlink has reportedly been made available for free in Iran to help demonstrators circumvent government internet blocks and share information with the world.

Govt looks to sustain spending momentum rests on jobs, pay

Economists suggest that the sustainability of India's current spending momentum is heavily reliant on a stable and strong labour market, as well as firmer non-farm rural job and income prospects. This comes as household consumption, which was bolstered by fiscal and monetary policies following the pandemic, has begun to show signs of fading.

Consumer Sentiment Trends

Data from the Centre for Monitoring Indian Economy's (CMIE) Consumer Pyramids Household Survey (CPHS) indicates that while consumer sentiment has recovered since October 2024, the Index of Consumer Sentiments (ICS) remained relatively flat through November and December 2025. However, the "quality" of this sentiment improved in December as rural households reported better financial conditions.

Key findings from the December ICS include:

• The rural sentiment index was nearly 3% higher than the urban index (which stood at 102), reflecting stronger income perceptions in rural areas.
• Rural residents expressed more favourable conditions for purchasing durables.
• Rural sentiment was further supported by an above-normal monsoon and a productive cropping season.

Agricultural and Rural Growth

A significant driver of rural stability has been the growth in real agricultural wages, which rose by over 5 per cent year-on-year between April and November 2025. This represents the highest growth rate in nearly eight years. Experts noted that the quality of rural sentiment improved almost twice as fast as urban sentiment in the latter half of 2025.

Urban Labour Market Challenges

In contrast to the rural recovery, the urban job market remains cautious. Urban job openings on major employment portals showed only a marginal uptick during November and December.

Madan Sabnavis, Chief Economist at Bank of Baroda, observed that hiring remains selective, with financial services being one of the few sectors adding headcount. He noted that most companies are focused on optimizing existing capacity rather than embarking on aggressive expansion, leading to a subdued employment outlook in urban centers.

Outlook for 2026

While the government and industry experts look toward a recovery in the fourth quarter of FY26, they maintain that broad-based growth will depend on whether improved rural sentiment and higher revenue levels can be sustained through 2026. The transition from episodic spending spikes to a durable consumption cycle will ultimately hinge on consistent improvements in both jobs and pay across both urban and rural demographics.

Complex GCC leases keep law firms busy

What were once routine leases are now turning into M&A-style mandates By Krishna Yadav

India’s global capability centre (GCC) boom is keeping the country’s law firms busier than ever as multinational companies set up larger office campuses on long-term leases across major cities. As foreign companies commit to 15–20-year tenures and build million-square-foot facilities in cities like Bengaluru, Hyderabad, Mumbai, Chennai, and the National Capital Region (NCR), leading law firms such as Cyril Amarchand Mangaldas, Khaitan & Co, JSA Advocates & Solicitors, and Nishith Desai Associates are increasingly involved in structuring these deals.

From Routine Leases to M&A-Style Mandates

What were once routine lease agreements are now transforming into M&A-style mandates that require sophisticated due diligence, governance, construction and zoning approvals, and long-term risk allocation. Industry experts note that the increased scale and tenure of GCC-led office transactions are fundamentally changing the nature of legal involvement.

GCCs are no longer considered simple back-office operations; they are now long-term strategic hubs for technology, R&D, and engineering. Consequently, their real estate commitments are larger, involve higher capital expenditures, and are more customized and future-ready.

Large-Scale Requirements

Individual office space requirements are rising significantly, with many multinational companies now taking up leases for over 500,000 square feet. One notable example is JPMorgan Chase, which is adding to its footprint with a large-scale GCC lease in Mumbai's Powai.

Firms like Nishith Desai Associates are advising GCC clients through the entire life cycle of a transaction, from structuring the entry entity to managing the legal and regulatory complexities of the lease.

The Growing GCC Market

India is currently home to more than 1,600 GCCs, which generated approximately $46.4 billion in revenue last year. This sector is projected to grow to more than $110 billion by 2030.

As these centers become high-performance hubs for artificial intelligence, cybersecurity, and global operations, they are driving a sharp rise in legal complexity. A key part of the legal mandate includes land and regulatory due diligence, where lawyers conduct title searches, examine past ownership, and verify zoning and municipal approvals to ensure long-term security of possession.

Why the US anger against Indian immigrants?

By S. Venkatesan

Indians in America have long been considered a “silent minority,” typically working in specialized fields like medicine and technology and gathering for cultural connection on weekends. However, the sources indicate that despite high-profile political successes in 2025—such as Zohran Mamdani becoming the mayor of New York City and Senator Ro Khanna leading Congressional pushes for transparency—a growing wave of hateful rhetoric is targeting the community.

A Cycle of Xenophobia

The author notes that this rise in anti-Indian animus is not surprising when viewed through the history of race relations in the United States. Xenophobia tends to be recycled over time, and the "needle of hate" has now turned toward Indians. This sentiment has even affected high-profile figures such as Second Lady Usha Vance and Vivek Ramaswamy.

The H-1B Visa Symbolism

A primary driver of this friction is the H-1B visa system. Because Indians hold the largest share of these visas, they have become the visible symbol of a "broken system" that many believe suppresses domestic wages and incentivizes employer abuse. While the author argues that Indians cannot be blamed for these systemic issues, the community is often targeted as the face of the problem. Proposed solutions like a $100,000 visa fee are criticized as measures that would "kill innovation and delight the Chinese".

Envy and Cultural Alienation

The success of the Indian diaspora often contributes to the backlash:

• Envy and Suspicion: Because Indians are generally well-educated, high-earning, and law-abiding, there is a perception among some that they are "gaming the system".
• Cultural Differences: Distinctive food habits, accents, and religious practices can make the community appear "alien" to some segments of the population.
• Political Rhetoric: Right-wing anti-immigrant rhetoric has actively fanned these flames, particularly during economic downturns when jobs disappear.

The Silence of Leadership

The article points out a notable reticence among Indian-origin CEOs in the tech sector, none of whom have directly addressed the current animus. The author suggests this silence may stem from the current political climate, where their "loyalty" to the U.S. might be called into question if they speak out.

While the U.S. Congress has passed resolutions condemning attacks on Hindu temples and hateful rhetoric, the author concludes that the true integration of the Indian diaspora may depend on the continued rise of Indian-origin politicians to help catalyze the same level of acceptance seen by preceding immigrant groups.