Newspaper Summary 280126

 The following article, titled "FTA puts spotlight on student and worker mobility from India to EU," details how the movement of people has become a central pillar of the India-EU Free Trade Agreement (FTA).

Structural Shifts in Mobility

Education consultants, immigration firms, and staffing companies anticipate a structural shift in student flows and skilled workforce mobility if the deal successfully addresses visa clarity and the mutual recognition of qualifications.

Currently, Europe holds a relatively modest share of India’s outbound student market, with approximately 100,000 Indian students (10-12% of total outbound volumes) heading to EU nations annually. Germany is the primary draw, attracting nearly 50,000 students, while France and Ireland host about 10,000 each, followed by Italy and Spain. The current flow is heavily skewed toward postgraduate studies, with 80% of students enrolled in Master’s programmes, 15% in undergraduate courses, and 5% in short-term upskilling.

Key Constraints: Visa Clarity and Professional Access

Experts identify the lack of clarity around visa pathways as a major hindrance. If the FTA improves transparency regarding visa categories and processing timelines, it could significantly reduce friction for both Indian professionals and European employers. Beyond students, Germany has emerged as a leading destination for Indian researchers and skilled professionals in engineering, manufacturing, IT, and applied sciences. Interest is also rising in Poland, the Netherlands, and other member states.

Drivers of Change: Skill Shortages in Europe

Europe’s push to ease mobility is necessitated by acute skill shortages and demographic pressures. Relaxation of mobility norms is expected to create immediate demand in several key sectors:

• Digital and IT services
• Core engineering roles
• Healthcare and life sciences
• Green and sustainability-linked jobs

While initial opportunities focus on white-collar roles, they may eventually expand into other sectors. European employers may also begin viewing Indian students studying in the EU as a locally trained talent pool, leading to more structured campus hiring and internship-to-employment strategies.

Investment and GCC Expansion

The FTA is expected to accelerate the expansion of Global Capability Centers (GCCs) for EU-headquartered firms in India. Currently, these companies (including majors like SAP, Siemens, Bosch, and Ericsson) account for over 15% of India’s GCC landscape. A strong FTA reduces the perceived risk of moving core operations—such as R&D, AI, and engineering—to India to mitigate talent shortages in Europe.

Furthermore, the agreement is expected to:

• Unlock EU capital for Indian startups by lowering perceived investment risks.
• Reduce barriers for Indian startups entering the EU market, provided they adapt to stricter European compliance standards.

Implementation Timeline

Industry executives caution that results will not be immediate. Even after the agreement is signed, tangible movement is expected to take 12 to 18 months as member states notify and implement policy changes.

The following article, titled "No impact on mass market cars," outlines how the India-EU Free Trade Agreement (FTA) is expected to affect the automotive sector:

Negligible Pricing Impact for Mass Markets

The India-EU FTA will have a negligible impact on vehicle pricing for most consumers. This is because major international manufacturers already import vehicles in "completely knocked down" (CKD) form to utilize the existing 15% duty rate. The reduction of tariffs on completely built units (CBUs) will only affect a limited number of high-end imports. Crucially, mass-market cars priced below ₹25 lakh will remain outside the ambit of the reduced duties. Government officials have agreed that cars in this lower price bracket will not be exported by the EU, though they may be manufactured locally in India.

Preferential Duty Quotas

The agreement will gradually allow up to 2.5 lakh Europe-made vehicles to enter India at preferential duty rates of 10%, down from the current 110%. This quota is significantly larger than the 37,000-unit quota previously extended to the UK under a separate deal. The distribution of this quota is as follows:

• 1.6 lakh internal combustion engine (ICE) units: Duties will fall to 10% within five years.
• 90,000 electric vehicles (EVs): Duties will reach the 10% mark by the 10th year to ensure the protection of the Indian EV market.

Benefits for European Auto Majors

Industry experts believe the pact will primarily benefit European auto majors, including:

• Volkswagen Group (owners of Audi, Lamborghini, and Skoda)
• Mercedes-Benz
• Stellantis
• Renault

Santosh Iyer, MD and CEO of Mercedes-Benz India, noted that the FTA opens new avenues for customers through better availability of top-end global models and faster access to the latest technology. However, he emphasized that Mercedes-Benz will continue to add value through local production at its Indian manufacturing plant.

Calibrated Industry Approach

The Society of Indian Automobile Manufacturers (SIAM) has highlighted that this "calibrated approach" seeks to balance market access for foreign firms with the growth of the domestic auto industry. By protecting sensitive segments while opening others, the deal aims for a "win-win" scenario that encourages both increased global participation and domestic investment and employment. Similarly, the Automotive Component Manufacturers Association of India (ACMA) expects the FTA to create a framework for resilient and diversified supply chains, positioning India as a reliable sourcing partner for Europe.

The following article, titled "India’s textile exporters can weave a competitive edge in the EU market," explores the significant impact of the India-EU Free Trade Agreement (FTA) on the domestic textile sector:

Leveling the Playing Field

The India-EU FTA is considered a shot in the arm for India’s textile industry, which has recently faced a crisis due to additional tariffs imposed by the US. The agreement provides immediate zero duty on 100 per cent of tariff lines, opening direct access to the $263-billion European textiles market. Crucially, this gives Indian exporters a level playing field with regional competitors such as Bangladesh and Vietnam, who already benefit from zero-duty access to the bloc.

Projected Export Growth

A Sakthivel, Chairman of the Apparel Export Promotion Council (AEPC), hailed the deal, predicting that exports to the EU could grow by 20-25 per cent annually once the FTA is operational, up from the current growth rate of just 3 per cent. While the EU is a major destination—accounting for 28 per cent of India’s total apparel exports—India currently holds only a 2.9 per cent share of the EU’s total apparel market, indicating significant room for expansion.

Competitive Advantages

Industry leaders see the elimination of 12-16 per cent tariffs in the €125-billion EU fashion market as a major victory. Kulin Lalbhai, Vice-Chairman of Arvind Ltd, noted that Indian manufacturers are now better positioned to reclaim market share from peers in Bangladesh and Vietnam. Similarly, Sivaramakrishnan Ganapathi, MD of Gokaldas Exports, stated that his company is already using the interim period before the FTA is enforced to prepare operationally to expand its existing 20 per cent revenue share from the EU.

Sourcing from Global Brands

The FTA is expected to prompt global retail giants to substantially increase sourcing from India. Brands identified as likely to seek high-quality, competitive Indian products include IKEA, JYSK, Carrefour, LIDL, ALDI, and C&A. This shift is predicted to benefit over 235 cotton textile export clusters across India.

Resetting the Market Imbalance

Prabhu Dhamodharan, Convenor of the Indian Texpreneurs Federation, believes the FTA will reset current imbalances and unlock growth in labour-intensive exports. He pointed out that while India, China, and Bangladesh grew by 6-8 per cent in the EU apparel market this year, competitors like Vietnam and Cambodia grew faster (11-15 per cent), highlighting the clear headroom available for India to accelerate its performance. Currently, India's apparel exports to the EU stand at approximately $5.5 billion.

Hailed as the "mother of all trade deals," the landmark India-EU Free Trade Agreement (FTA) was concluded after nearly two decades of intermittent negotiations. The pact is viewed as a strategic blueprint for shared prosperity, uniting two major economies that together represent 25% of global GDP and one-third of global trade.

Market Access and Tariff Liberalization

The agreement focuses on a phased reduction of both tariff and non-tariff barriers:

• Indian Exports: On Day 1 of implementation, the EU will eliminate tariffs on 90% of Indian exports by value. This will expand to 99.5% of Indian goods over a seven-year period.
• Immediate Gains: Labour-intensive sectors such as textiles, apparel, leather, footwear, gems and jewellery, chemicals, and marine products will see duties drop to zero immediately. For example, apparel exporters will see the elimination of 12% tariffs, leveling the field against regional competitors.
• EU Access to India: India will eventually open its markets to 97.5% of EU goods. Zero duties will apply to 30% of trade value on Day 1, reaching 93% by the tenth year.
• Key Consumer Goods: European processed foods (breads, pasta, chocolates, pet food) will become significantly cheaper as tariffs of up to 50% are removed.

Strategic Sectoral Provisions

The FTA includes calibrated compromises for highly shielded sectors:

• Automobiles: India will gradually reduce duties on fully built European cars from 110% to 10% over five years, subject to an annual quota of 250,000 vehicles. However, mass-market cars priced below ₹25 lakh are excluded from these concessions.
• Wines and Spirits: Tariffs on premium European wines will drop from 150% to 20%, while spirits will be capped at 40% through a phased approach.
• Exclusions: To protect domestic sensitivities, both sides have kept agriculture and dairy largely out of the deal. Specifically, India has shielded sectors like cereals, poultry, and soymeal.

Services, Mobility, and Professionals

The agreement extends far beyond merchandise trade:

• Services: The FTA secures predictable access across 144 EU services sub-sectors, including IT/ITeS, professional services, R&D, and education.
• Talent Mobility: A future-ready framework facilitates the movement of skilled professionals, researchers, and business visitors.
• Education: The pact includes binding commitments for student mobility and post-study work visas, providing an alternative destination for those affected by stricter policies elsewhere.
• Social Security: India and the EU have agreed to a framework to enable social security agreements with all member states within five years, helping Indian professionals avoid double contributions.

Sustainability and Security Fault Lines

While the deal marks a breakthrough, it also addresses complex regulatory challenges:

• Carbon Tax (CBAM): The FTA provides no immediate relief for Indian exporters from the EU’s Carbon Border Adjustment Mechanism. However, the two sides will establish a technical dialogue to explore preferential treatment and the recognition of Indian carbon credits.
• Security Partnership: Accompanying the trade deal is a new Security and Defence Partnership framework to deepen ties in maritime security, cyber threats, and counter-terrorism.
• Investment Protection: Negotiations are also underway for a standalone Investment Protection Agreement and a pact on Geographical Indications to protect iconic products.

Implementation Timeline

Following the conclusion of negotiations, the text will undergo legal scrubbing and must be ratified by the European Parliament. Implementation is expected to occur within calendar year 2026.

The following article, titled "Embraer, Adani to make commuter aircraft in India," describes a new strategic partnership in the aerospace sector:

Indigenous Regional Transport Aircraft

Brazilian aerospace major Embraer has partnered with Adani Defence and Aerospace to develop an indigenous regional transport aircraft (RTA), specifically designed as a commuter aircraft. This type of aircraft is intended to seat around 90 passengers or more and features an operational range of 500-900 km.

Local Manufacturing and Indigenization

The memorandum of understanding (MoU) signed between the two companies focuses on local assembly and deeper indigenization. This collaboration is expected to pave the way for India’s own final assembly line (FAL) for regional transport aircraft. In the initial phase, the project will establish the assembly line, followed by a gradual increase in local manufacturing of components like engines, landing gear, avionics, and interiors.

Strategic Alignment with National Goals

Industry leaders state that the initiative is closely aligned with the Aatmanirbhar Bharat (self-reliant India) initiative and the UDAN regional connectivity vision. Jeet Adani, Director of Adani Defence and Aerospace, noted that regional aviation has gained greater importance as initiatives like UDAN improve connectivity to Tier-II and Tier-III cities. Furthermore, the partnership is expected to strengthen strategic ties between India and Brazil by bringing together complementary aerospace capabilities.

Market Advantage and Efficiency

Arjan Meijer, President and CEO of Embraer Commercial Aviation, highlighted that the Embraer E2 jet is particularly suited for the Indian market. While the E2 is smaller than the Boeing 737 or Airbus A320, it offers roughly 25% lower trip costs per seat, making it an ideal choice for regional routes where larger 180-seat planes are difficult to fill.

Implementation and Industry Context

Despite India being a major market for aircraft, global giants like Airbus and Boeing have not yet established assembly lines in the country, choosing instead to focus on local sourcing. This Adani-Embraer tie-up represents a concrete step toward making India a self-reliant base for aerospace manufacturing. However, the final decision to build the facility remains contingent on the partners securing a sizeable order from an Indian airline.

Based on the sources provided, here is the reproduction of the article titled “Field levelled, India’s seafood exporters eye a big catch”:

A Reprieve from US Tariffs

The Seafood Exporters Association of India (SEAI) has described the India-EU Free Trade Agreement (FTA) as a vital reprieve for a sector currently struggling with high US tariffs. By removing trade barriers, the agreement is expected to ease the pressure on Indian exporters while opening stable, high-value trade routes to Europe.

Immediate Duty Elimination

Under the pact, the duty on seafood exported from India will drop from current rates of 4.2–7.5 per cent to “nil”. This elimination of duties provides a level playing field for Indian exporters, allowing them to compete more effectively with rivals from other countries and regions.

Rising Export Momentum

India’s presence in the European market is already growing. Key statistics include:

• 2024-25 Exports: India exported $1.1 billion worth of seafood to the EU.
• New Fishery Units: The EU recently listed 102 new fishery units, leading to a substantial increase in exports during the current financial year.
• Volume and Value Growth: Comparing April–November 2024 to the same period in 2025, export volumes rose by 28 per cent (to 176,367 tonnes), while export value surged 37.8 per cent (reaching $988.22 million).

Market Diversification and Expansion

Industry leaders see the FTA as a structural opportunity to achieve market diversification.

• Targeting the Top Spot: G Pawan Kumar, President of SEAI, expressed confidence that the deal will help Indian produce attain the “pole position” in the European region.
• Untapped Potential: India currently holds only about a 15 per cent market share of the $30-billion EU import market from non-member countries, leaving significant headroom to scale.
• Regional Focus: Experts see strong potential for deeper participation in Southern and North-Western Europe, particularly for shrimp and mollusc exports.

Moving Up the Value Chain

The agreement supports India’s long-term ambition to shift toward value-added seafood. Enhanced access to major markets such as the Netherlands, Germany, and Belgium will allow Indian firms to move up the value chain rather than relying solely on raw exports.

Impact on Coastal Communities

Industry sources anticipate that the deal will “turbo-charge” the export of shrimp, frozen fish, and value-added products. This growth is expected to directly empower coastal communities in key states, including Andhra Pradesh, Gujarat, and Kerala.

The following article, titled "Exporters of labour intensive goods expect shipments to surge after duty cuts," details the high expectations for Indian trade following the clinching of the India-EU Free Trade Agreement (FTA).

Immediate Gains for Labour-Intensive Sectors

The conclusion of the long-pending deal has sparked optimism among Indian exporters, particularly those in labour-intensive industries currently facing turbulence in the US market due to 50 per cent tariffs. Sectors expected to see a substantial boost include apparel, leather, footwear, gems and jewellery, engineering goods, marine products, handicrafts, and auto.

Officials note that many of these sectors currently face tariffs much higher than the EU average of 3.8%. The agreement mandates the elimination of tariffs on approximately 93 per cent of Indian exports (by value) on the very first day of implementation, which is targeted for calendar year 2026.

Strategic Market Opening

SC Ralhan, President of the Federation of Indian Export Organisations (FIEO), stated that the elimination of tariffs (up to 10 per cent) on nearly $33 billion worth of Indian exports will provide immediate and tangible gains. These benefits are expected to translate into:

• Higher export volumes.
• Large-scale employment generation.
• Stronger grassroots participation in global trade.

Coupled with recent FTAs with the UK and the EFTA bloc, this deal effectively opens the entire European market to Indian exporters.

Sector-Specific Impacts

• Gems and Jewellery: The Gems & Jewellery Export Promotion Council (GJEPC) predicts the pact will double bilateral trade to $10 billion within three years. Export hubs in Gujarat, Rajasthan, Maharashtra, and West Bengal are expected to ramp up shipments of precious, silver, and imitation jewellery, helping to salvage ground lost due to a 44 per cent decline in exports to the USA.
• Apparel Products: The FTA eliminates tariffs on 100 per cent of apparel tariff lines, which currently reach as high as 12 per cent. This creates a level playing field with competitors like Bangladesh, Turkey, and Vietnam, which already enjoy duty-free or preferential access. Major markets like Germany, France, Spain, and Italy are expected to increase sourcing from India significantly.
• Leather and Footwear: Tariffs as high as 17 per cent will be eliminated upon the FTA's entry into force. This is expected to improve India's share in the EU's nearly $100 billion import market for these items.

Implementation Outlook

Exporters are optimistic that this timely pact will help them regain lost ground and reinforce India's vision of export-led prosperity. While the text must still undergo legal scrubbing and approval by the EU Parliament, industry leaders are preparing for a 2026 rollout.

The following article, titled "Some broad goals for the Budget" and written by Mridul Saggar, outlines the key imperatives for the upcoming Union Budget:

The Three Imperatives

While India’s population of 1.46 billion has varied aspirations, it is neither feasible nor desirable for the Budget to meet them all. Instead, the Budget should focus on three specific imperatives:

1. Building on fiscal sustainability.
2. Contributing to the reduction of income and wealth inequalities.
3. Maintaining a sustainable high growth path while achieving the first two goals.

The author suggests that the results will be extraordinary if the Budget strikes a balance in the "middle ground" rather than trying to over-achieve or under-achieve.

Fiscal Sustainability

The fiscal position has improved remarkably over the last five years, with the Gross Fiscal Deficit (GFD) compressed by 4.8 percentage points of GDP from its pandemic high. For the 2026-27 Budget, the author argues for staying the course of consolidation by targeting a GFD/GDP ratio of 4.2 per cent or less. Achieving this would provide several benefits:

• Creating fiscal space for stimulus if the economy faces external shocks.
• Checking relentlessly firming bond yields and helping to soften lending rates.
• Reviving investor sentiment and potentially prompting rating firms to move India’s sovereign rating from stable to positive.
• Preserving the ability to respond to "grey swan" events, such as geopolitical conflicts, by allowing for increased security spending.

Fiscal Risks and Structural Shifts

The path forward contains risks, specifically the Pay Commission awards due in the 2027-28 and 2028-29 budgets, as well as the political cycle risks of the next general elections. The author highlights a "downright anomaly" in government accounting: while private firms build reserves for contingencies, government budgets continue to use cash accounting and fail to provide for known future liabilities. He expresses hope that the 16th Finance Commission will recommend a shift to accrual accounting.

Fiscal credibility depends on this Budget extending the consolidation trend to meet the medium-term target of reducing the Centre’s debt/GDP to 50 per cent by March 2031.

Targeting Inequality and Growth

Despite increased social safety nets and intervention programs—such as employment generation and health insurance—inequalities in income and wealth have spiked. The author suggests that fiscal policy can address this by increasing the marginal propensity to consume through redistribution, which boosts the Keynesian multiplier.

To achieve the "holy trinity" of growth, fiscal consolidation, and equity, the Budget must radically disconnect from the past by:

• Cutting revenue spending through the downsizing of government.
• Stepping up capex (capital expenditure) and crowding in private investment by de-risking projects.
• Reintroducing accelerated depreciation benefits to spur investment.

The author concludes that investment is the superior lever for growth, noting that the capex multiplier is 2-2.5 times higher than the neutrality observed with revenue spending or tax cuts.

The following article, titled "Will India join Donald Trump’s board of peace?" and based on the provided sources, examines the strategic and political implications of the newly proposed international body.

Background: Gaza and Beyond

The Board of Peace (BoP) was initially presented in September 2025 as a "new international transitional body" designed to oversee the interim governance and rebuilding of Gaza. While the United Nations Security Council (UNSC) formally backed the BoP in November, giving it legitimacy through 2027, the scope of the body has since expanded significantly. The BoP charter now seeks to secure "enduring peace in areas affected or threatened by conflict," and notably, the charter does not mention Gaza a single time, positioning it as a more "nimble and effective" alternative to the UN.

A Controversial "Pay-to-Play" Structure

The BoP has drawn criticism for the inordinate power it vests in its chairman, Donald Trump, who possesses the authority to nominate or remove members, exercise veto power, and name his successor. Furthermore, the organization features a "pay-to-play" structure:

• Permanent Membership: Granted to members who contribute $1 billion.
• Temporary Membership: Others serve for a three-year term. Analysts, including former Indian diplomat Ausaf Sayeed, argue this creates a weighted hierarchy where sovereignty is no longer an equal right but a privilege of the wealthy.

India’s Strategic Caution

While India has not publicly expressed reservations, it is wary of the BoP’s broad mandate to look at all conflict regions. Specific concerns include:

• The Pakistan Factor: Pakistan is a founding member; India fears Islamabad will use the platform to bring global focus to Kashmir.
• Mediation Risks: India has traditionally rejected Trump’s offers of mediation, including his recent claims regarding Operation Sindoor. However, some experts argue that "being in the room" is the best way for India to counter Pakistan’s diplomatic moves and protect its interests.

Impact on Indo-US Relations

Rejecting the invitation could be perceived as a slight by Trump, potentially endangering ongoing India-US trade negotiations and coalitions like Pax Silica. Conversely, India could use the offer as leverage, joining the BoP in exchange for a faster conclusion of a favorable trade deal.

Global Membership Status

The BoP currently consists of 20 founding members who signed the agreement in Davos on January 22.

• Joined: US, Qatar, Argentina, Turkey, Hungary, Indonesia, Bulgaria, Pakistan, Bahrain, and the UAE.
• Intent to Join: Israel.
• Declined: The UK, France, Norway, and Sweden have all declined to join at this time.
• India: Currently examining the offer.

The following article, titled "What Drives India’s ₹80 TN Mutual Funds," examines the rapid growth and resilience of the Indian mutual fund industry following the post-2020 market boom.

Foundational Growth and AUM Expansion

In the last five years, the mutual fund industry’s assets under management (AUM) have swollen from ₹31 trillion in December 2020 to ₹80.23 trillion in December 2025, representing a compounded annual rise of 21%. This growth has been supported by foundational gains in the investor base that have withstood the recent tapering of market returns.

Increased Investor Stickiness

A primary driver of the industry is the "stickiness" of investments, which allows for better money management and fewer forced adjustments to portfolios. Individual investors are increasingly staying the course:

• As of September 2025, 61% of individual investments in equity funds had a holding period of above two years, up significantly from 47% in 2019.
• For retail investors specifically, the share of equity holdings held for more than two years rose from 32.2% in 2019 to 46.7% in 2025.

The Power of SIPs

Systematic Investment Plans (SIPs) have been critical to the industry's success by enforcing investment discipline and removing the dilemma of trying to time the market.

• Between March 2020 and March 2025, the number of active SIP accounts tripled to 99 million.
• The total amount invested via SIPs jumped 5.5 times, rising from ₹2.4 trillion to ₹13.2 trillion during the same period.
• While net additions to SIPs have moderated recently, they remained positive with an average of 1.3 million net additions monthly between September and December 2025.

Shift in Household Financial Assets

Mutual funds are capturing a larger share of the Indian household wallet.

• The share of mutual funds in the financial assets of Indian households crossed the 10% mark for the first time in March 2024 and reached 11.7% by March 2025.
• Conversely, the share of traditional bank deposits in household financial assets dropped from 46.2% to 43.4% in the same period.

Expansion Beyond Metros

The industry is successfully tapping into new markets beyond India's major urban centers.

• The share of cities beyond the top 15 in mutual fund AUM rose from 14.4% in 2015 to 35.4% in 2025.
• In terms of SIP accounts, the share of the "next 30" cities (after the top 30) increased from 47% in March 2020 to 55% in March 2025.

The Rise of Direct Investing

Investors are increasingly bypassing intermediary commissions to maximize returns.

• In 2024-25, nearly 80% of mutual fund investments were in "direct plans," which offer higher yields because no commissions are paid to distributors.
• The impact of this shift is substantial; for example, the Nippon India Large Cap Fund yielded a 19.43% return in its direct plan over five years, compared to 18.42% in its regular plan.

Based on the sources provided, there is no article titled "Foundation Private Equity looks to ramp up India's bets" or any specific mention of a firm named "Foundation Private Equity."

However, the sources do contain significant information regarding other major private equity (PE) firms and institutional investors "ramping up" their investments and presence in India:

Blackstone Ramps Up Digital Infrastructure

• Blackstone Group is significantly increasing its footprint in India with a plan to invest over ₹10,000 crore to develop a hyperscale digital infrastructure hub in Chennai.
• Through its data center platform, Lumina CloudInfra, the group has acquired a 16-acre land parcel in Chennai for over ₹500 crore.
• The new Chennai campus will have an initial IT load capacity of 216 megawatts (MW).
• This move establishes Blackstone as one of the largest data center owners in India, with a total potential capacity of over 700 MW across sites in Chennai, Navi Mumbai, and Hyderabad.

GIP and BlackRock’s Strategic Shifts

• Global Infrastructure Partners (GIP), a subsidiary of BlackRock, is in the process of reshaping its India portfolio by shortlisting four potential buyers (Actis, Sembcorp, KKR, and Sekura Energy) for its 1.1 GW renewable energy platform, Vena Energy India.
• The deal is expected to value the platform at ₹4,500–5,000 crore.
• Despite the sale, GIP has recently stepped up its India exposure, including a $325 million minority investment in Aditya Birla Renewables in December 2025.

TPG and TCS Partnership for AI

• Tata Consultancy Services (TCS) has entered into a strategic investment path with the private equity firm TPG.
• Together, they have committed approximately ₹18,000 crore ($2.1 billion) to build AI-ready data centers through a joint venture called HyperVault.

Motilal Oswal’s Private Equity Expansion

• Motilal Oswal Financial Services reported that its Private Alternates AUM grew by 62% year-on-year.
• Its India Business Excellence Fund V (IBEF V) has achieved a cumulative fundraise of ₹8,000 crore.
• The firm also launched its maiden Private Credit Fund in January 2026 with a target size of ₹3,000 crore.

Venture Capital in AI and Healthtech

• Meta (formerly Facebook) identified India as a "powerhouse for AI talent" and a key priority geography for its future building and investment strategy.
• The healthtech startup Nivaan Care recently raised $7 million in a round led by the early-stage venture firm Sorin Investments.
• The SaaS startup SpotDraft secured $8 million from Qualcomm Ventures as part of an extension to a $56 million round led by Vertex Growth.

The following article, titled "Second shift: How Gen Z is building wealth after office" and written by Ann Jacob, explores the rising trend of secondary employment among young professionals in India.

The Dual Career Lifestyle

The traditional 'nine-to-five' is increasingly viewed not as a final destination, but as an anchor to stabilize larger, ambitious financial goals. A prime example is Stephen Fernandes, a 26-year-old who works as a DevOps engineer during the week and a sound engineer for a band on weekends. What began as a college passion project has evolved into a significant income stream that sometimes rivals his full-time salary.

Driven by Financial Anxiety and Ambition

Data suggests that young professionals are chasing extra paychecks to outrun inflation and financial anxiety. According to the Deloitte Global 2025 Gen Z and Millennial Survey, financial concerns are the primary engine driving this shift.

• 48% of Gen Z and 45% of millennials cite their financial future as their top stressor.
• 43% of Gen Z actively prefer a side hustle to gain extra income and financial security.

Beyond the paycheck, side hustles serve as a hedge against obsolescence in an era of rapid AI integration, allowing professionals to diversify their skill sets. For some, like 25-year-old copywriting lead and professional bass guitarist Mikhail Pinto, the side hustle provides the mental satisfaction that a corporate cubicle cannot.

The "DINK" Strategy and Upskilling

For those living the DINK (double income no kids) life, the side hustle allows for a distinct financial strategy: using the primary salary for household expenses and investments while dedicating side income to leisure, enjoyment, and further upskilling. For instance, Fernandes uses his secondary income to fund specialized sound engineering software and courses.

Navigating the Workplace "Grey Area"

The nature of secondary employment has shifted from "moonlighting in the shadows" to a more upfront approach. Experts suggest that professionals check their employment contracts, as many companies are moving away from blanket bans toward more nuanced policies. Transparency with HR is essential to avoid conflicts of interest, particularly ensuring the side gig does not draw from the employer's client pool.

The Taxman and the Safety Net

Financial planners emphasize that all side income is taxable and must be reported. Salaried individuals can declare additional business or professional income to their employers using Form 12BAA so that it can be factored into TDS calculations.

To build long-term wealth, experts suggest:

• Building a larger safety net: Ideally, 6 to 12 months of living expenses and liabilities.
• Avoiding "lifestyle creep": Being mindful that double income doesn't lead to a surge in unnecessary expenses that eat up potential savings.

Side Hustle Dos and Don'ts

Dos:

• Be transparent: Disclose substantial ventures to HR.
• Prioritize performance: Ensure the primary job remains the focus.
• Safety first: Use extra income to build a lasting financial fortress.

Don’ts:

• Misuse assets: Do not use office laptops or software for side gigs.
• Cross the streams: Do not compete with your employer’s services or use their client pool.
• Neglect taxes: Remember that the IT department tracks all inflows.

The following article, titled "The case for slower tech in a connected world" and written by Anoushka Madan, explores a growing trend among young Indians to adopt older or "old-feeling" technology.

Fatigue with Constant Connectivity

Across India, a growing number of Gen Z and millennials are turning to iPods, feature phones, digital cameras, and instant film as a way to counter the relentless pull of the smartphone. This shift is not driven by simple nostalgia, but by a profound fatigue with endless notifications, intrusive digital features, and algorithmic feeds that feel overwhelming.

Visible Shifts in Usage

The change is manifesting in practical ways:

• Feature Phones: These are being used as secondary or "weekend phones," limiting users strictly to calls and texts.
• iPods: Old devices are being repaired or modified so that music can exist separately from social media and messaging apps.
• Instant Cameras: Products like the Instax Mini have become staples at weddings and college campuses, as they produce physical photographs that bypass the need for editing or online validation.
• Digital Cameras: Older models from Canon, Sony, and Nikon are back in circulation, prized for their finite storage and "imperfect" flash-heavy images.

The Appeal of Constraint and Tactility

New product designs are beginning to reflect this desire for constraint, such as the Clicks Communicator, which adds a physical keyboard to smartphones. For many, the appeal lies in the intentional use of technology. Fashion student Tanay Malhotra notes that the capped storage of a digicam forces him to observe and think about what is actually worth photographing, leading to more considered outcomes.

Entrepreneur Aneesh Bhasin highlights a preference for tactile things over modern touchscreens, noting that items like a 1978 Japanese amplifier are repairable and designed to last decades. He even prefers manual espresso machines because they force a user to be "present".

Frustration with AI and Automation

There is a quiet, growing frustration with how modern technology operates, specifically regarding AI-mediated interactions. Users are becoming fatigued by messaging apps that suggest replies, email inboxes that summarize conversations, and search engines that prioritize AI answers they do not fully trust. In this environment, simpler tools like an iPod or a flip phone feel grounding because they only do exactly what the user chose for them to do.

Embracing Friction as a Choice

While modern digital life aims to remove all friction, many are now embracing friction as the point of the experience. The constraints of older tech—uneditable images or limited functions—introduce necessary pauses that digital devices have erased. They shift the user's focus from mere output and speed to presence and experience.

As Jude de Souza, CEO of The Revolver Club, states, analogue technology makes a person pause and engage with the moment instead of just scrolling past it. Ultimately, this turn toward slower tech represents a recalibration, allowing users to reclaim agency over how technology shapes their daily lives.