Indian Domestic Economic Policy - Newspaper Summary

 The sources illustrate that in September 2025, the Indian domestic economy is characterized by robust demand-driven growth facilitated by proactive fiscal policy, yet simultaneously constrained by lingering structural issues and severe external shocks from the global landscape, particularly from the US.

1. Domestic Economic Resilience and Growth

India's economic fundamentals are strong, positioning the country for steady expansion despite external volatility.

GDP and Growth Forecasts

• India's credit profile benefits from its strong growth potential, underpinned by a large domestic market and favorable demographics.
• The economy’s growth path appears to be on a steady incline.
• The Q1 FY26 GDP print was significantly firmer than expected, accelerating to a five-quarter high of 7.8% (up from 7.4% in Q4 FY25).
• Rating agency Icra revised its FY26 GDP growth forecast upwards to 6.5% (from 6.0%). Moody's Ratings projected economic growth to be sustained at 6.5% in FY26.
• The Indian economy’s strong domestic financing base for ongoing fiscal deficits and its demand-driven expansion help insulate it from external shocks.

Policy Drivers: Fiscal Stimulus and Consumption Surge

Recent government policy actions are intentionally aimed at boosting domestic consumption:

• GST Rate Cuts (GST 2.0): The consolidation of GST rates was announced in September, providing a significant fiscal stimulus. These cuts are expected to "turbo-charge sentiment" and kickstart consumption.
  • The GST cuts spurred a massive spike in sales in the consumer durables and electronics sectors due to pent-up demand.
  • The auto market saw an immediate effect, with major manufacturers reporting record sales and enquiries on the first day of the new GST regime, leading to a 50% jump in demand for small cars.
  • The annualised impact of the GST cuts on GDP could be 0.6–0.7 per cent.
  • A large part of the resulting gain to consumers is expected to be spent on additional goods and services or on uptrading to premium options.
• Income Tax Relief: Income tax thresholds were increased in the recent budget, eliminating direct tax liabilities for many lower-to-middle-income households, further supporting urban consumption.
• Government Capital Expenditure (Capex): Strong GDP growth in Q1 was aided by a 52% year-on-year surge in the Government of India’s capex. Continued government expenditure is expected to support capital and infrastructure goods production.

2. Monetary Policy Stance and Inflation Management

The Reserve Bank of India (RBI) is in an "enviable dilemma" due to synchronized low inflation and steady growth.

• Inflation Control: Inflation has remained benign, with average CPI inflation for FY26 likely to print around 2.6%. The GST rejig alone is expected to dampen headline CPI prints by 25–50 basis points (bps) through Q3 FY26 to Q2 FY27.
• Rate Decision (October Policy): Despite the low inflation outlook (sub-3% inflation for FY26), the Monetary Policy Committee (MPC) might opt for a status quo (policy pause) on the repo rate.
  • A pause preserves flexibility amid evolving growth risks and external uncertainty related to US tariffs.
  • Some experts argue for a pre-emptive quarter-percentage-point rate cut to support economic expansion before the effects of US tariffs materialize and to back the government’s fiscal stimulus with a monetary one.
  • Ultimately, policymakers suggest that providing clear and credible forward guidance on potential future easing would be more effective in calming market nerves than an immediate rate cut.
• Liquidity Management: The RBI is urged to shift focus beyond just the policy rate to managing systemic liquidity. Durable liquidity is expected to drain down towards ₹1.5 trillion by the end of FY26 from current levels of around ₹5 trillion, requiring the RBI to be agile with proactive intervention to avert a potential credit squeeze.
• Monetary Transmission Impediments: The benefits of monetary easing are being limited by adverse sentiment in the bond market, driven by escalating risks of fiscal slippage and concerns about additional government debt supply.

3. Structural Policy Reforms and Weaknesses

The policy focus extends to deeper structural issues, particularly regarding capital flows and regulation.

Boosting FDI and Ease of Business

• The government is planning to simplify Foreign Direct Investment (FDI) processes by reducing red tape and making rules more investor-friendly. This effort is spearheaded by the Department for Promotion of Industry and Internal Trade (DPIIT).
• Current hurdles include complex approval and reporting processes requiring investors to fill multiple forms (e.g., Form FC-GPR, FC-TRS, FLA return) across different portals. The Centre may consolidate forms and synchronize processes.
• FDI is deemed crucial as it brings essential capital, technology, and expertise to fuel economic growth. However, FDI growth slowed recently, rising 15% in Q1 FY26, lower than the 47.8% growth in the previous year's Q1.

Regulatory and Fiscal Challenges

• Fiscal Weakness: Despite strong growth, Moody's noted that recent fiscal measures (income tax relief, GST consolidation) that reinforce private consumption will erode the government’s revenue base. This limits potential improvements in debt affordability and could impede progress toward debt reduction.
• Poverty and Disparities: A report published in the RBI Bulletin noted a significant decline in poverty between 2010-11 and 2022-23, with poor states catching up in consumption. However, industrialised states like Maharashtra still show high poverty incidence (9.95%), indicating that high aggregate wealth does not equate to equitable poverty reduction.
• Inverted GST Structure: Specific GST changes created problems for some industries. The Exercise Book Manufacturers Association raised concerns that the reduction of GST on books/notebooks to zero, coupled with an increase on paper and paper boards to 18%, created an inverted duty structure. This blocks input tax credit (ITC) and is expected to raise notebook retail prices by 15–20%, potentially increasing imports and hurting MSME domestic manufacturers.
• GST Dispute in Oil/Gas: FICCI expressed distress over the hike of GST on capital goods for petroleum and Coal Bed Methane (CBM) operations to 18% (up from 0% under the previous VAT regime). This is seen as a disruption of E&P contracts that guaranteed zero taxes on local purchases, raising project costs and discouraging investment in the sector.

4. Global Economic Landscape & External Headwinds

The domestic policy actions are a direct response to, and are often challenged by, external turmoil.

US Trade and Visa Aggression

The most pervasive challenge is the Trump administration's aggressive trade policies:

• Steep Tariffs: The imposition of an unexpectedly high reciprocal tariff of 25% on merchandise imports from India, followed by an additional 25% punitive tariff due to India’s Russian oil trade, results in a total tariff of 50%.
  • This targets key Indian exports like textiles, gems and jewellery, electronics, and pharmaceuticals. While merchandise exports to the US are only 2.2% of India’s GDP, the sharp fall could widen the trade deficit significantly.
  • Uncertainty related to these tariffs affects companies' willingness to undertake big-ticket private capex.
• H-1B Visa Fee Hike: The fee hike to $100,000 targets India, whose professionals accounted for 71% of H-1B visas in FY24.
  • This is expected to affect the competitiveness of Indian IT service providers and threatens critical inflows like software exports and worker remittances, which historically provided resilience to India's balance of payments.
  • The rupee settled lower at 88.75 against the US dollar due to persistent foreign capital outflows, trade uncertainties, and the impact of the H-1B fee hike on IT exports.

India's Strategic and Trade Response

India is managing external risks through strategic diplomacy and diversification:

• Trade Diversification: India is actively negotiating Free Trade Agreements (FTAs) with several partners, including the US, EU, New Zealand, Oman, Peru, and Chile, as part of a push to stabilize trade and mitigate tariff shocks.
• Russian Oil Policy: Despite Washington’s advice and tariff warnings, India is unwilling to stop purchasing Russian oil as long as it is offered at a good price, arguing that Russian oil is not a sanctioned commodity. India is open to buying more US energy products as a gesture of goodwill, provided the pricing is feasible.
• Geopolitical Stance: India's External Affairs Minister hosted a meeting of BRICS Foreign Ministers, emphasizing that in a turbulent world, the bloc must reinforce the message of peacebuilding and diplomacy.

Sovereign Rating - Newspaper Summary

 The sources provide a comprehensive view of India's Sovereign/Debt and Ratings landscape in September 2025, highlighting a juxtaposition of robust economic growth and lingering fiscal weaknesses, all set against a backdrop of significant global uncertainty driven largely by US trade policy.

Sovereign Ratings Status and Context

India's sovereign credit rating, crucial for international borrowing and investor confidence, remains stable according to major rating agencies.

• Moody's Rating: Moody's Ratings affirmed India's credit rating at 'Baa3' and maintained a stable outlook. The 'Baa3' rating is categorized as the lowest investment grade rating.
• Recent Upgrades: This stable status is reported alongside recent positive movements from other agencies. Japan’s Rating and Investment Information Inc. (R&I) raised India's long-term rating to BBB+ from BBB with a stable outlook. S&P Global and Morningstar DBRS also upgraded India's ratings earlier in August and May 2025.
• Significance: These rating gains are deemed significant because they occurred amid global uncertainty and geopolitical volatility. The Union finance ministry noted that India earned its third sovereign ratings upgrade in fiscal year 2025 due to steady growth, macroeconomic stability, and credible fiscal discipline over the past few years.

Credit Strengths and Resilience

The stable outlook and investment-grade ratings are fundamentally rooted in several core strengths of the Indian economy.

• Economic Fundamentals: Moody's affirmation reflects the view that India’s prevailing credit strengths—a large, fast-growing economy, and a sound external position—will be sustained.
• Growth Potential: India's credit profile benefits from its strong growth potential, underpinned by a large domestic market and favorable demographics that support resilient, demand-driven expansion. This internal demand helps insulate the economy from external shocks.
• Domestic Financing: India benefits from a stable domestic financing base for ongoing fiscal deficits.
• External Headwinds Mitigation: These inherent strengths lend resilience to adverse external trends, particularly high US tariffs and other international policy measures that could hinder India’s capacity to attract manufacturing investment.

Fiscal Weaknesses and High Debt Burden

Despite the strong growth narrative, Moody's highlights long-standing fiscal weaknesses that balance India's credit strengths.

• Debt Affordability: The agency indicates that strong GDP growth and gradual fiscal consolidation will only lead to a very gradual decline in the government’s high debt burden. This gradual reduction will not be sufficient to materially improve weak debt affordability.
• Erosion of Revenue Base: Recent fiscal measures aimed at reinforcing private consumption, such as increased income tax thresholds and the consolidation of Goods and Services Tax (GST) rates announced in September, are expected to erode the government's revenue base. Moody’s cautioned that these developments narrow the tax base and result in foregone revenue, thereby curtailing potential improvements in debt affordability.
• Fiscal Risk Warning: Moody's cautioned that fiscal accommodation (especially revenue-eroding measures) in the context of the uncertain global macroeconomic outlook could impede progress towards debt reduction and exacerbate already weak debt affordability.
• Bond Market Impact: Concerns regarding India's fiscal position are impacting financial markets. Escalating risks of fiscal slippage, due to subdued tax buoyancy, are overshadowing the bond market outlook with worries about additional government supply of debt instruments. Furthermore, the G-sec market is experiencing spillover pressures from elevated State Development Loan (SDL) issuances.

Global and Indian Economic Landscape (Sep 2025)

The ratings and debt profile are closely tied to the volatile global and domestic economic environment.

1. External Shocks and Trade Tensions:

• US Tariffs: The Trump administration imposed an unexpectedly high reciprocal tariff of 25% on merchandise imports from India, followed by an additional 25% punitive tariff due to India's continued engagement in trade involving cheap Russian oil.
• Impact on Exports: This 50% tariff threatens sectors such as textiles, gems and jewellery, electronics, and pharmaceuticals. Although merchandise exports to the US are only about 2.2% of India’s GDP, the direct effect on affected sectors is damaging, and the resulting widening of the trade deficit could be significant.
• IT Services Headwind: The US decision to raise H-1B visa fees to $100,000 makes it extremely expensive to hire foreign professionals, directly impacting India's vital IT services sector, which provides on-site support crucial for overall service exports and remittance flows.
• India's Response: India is continuing trade negotiations for Free Trade Agreements (FTAs) with several countries, including the US, EU, New Zealand, Oman, Peru, and Chile, as part of a trade diversification push to mitigate risks from tariff shocks.

2. Monetary Policy and Liquidity:

• RBI's Dilemma: The Reserve Bank of India (RBI) faces an "enviable dilemma" ahead of its October 1 policy decision, as economic growth is on a steady incline and inflation is well under control.
• Rate Decision: While benign inflation (expected sub-3% for FY26) suggests room for a rate cut, experts recommend a policy pause to preserve flexibility amidst evolving growth risks and uncertainty related to US tariffs. A dovish forward guidance is suggested instead of an immediate rate cut to reassure markets.
• Liquidity Management: The banking system currently has a surge in liquidity (estimated at ₹3-4 trillion). However, experts caution that durable liquidity could drain down towards ₹1.5 trillion by the end of FY26, requiring agile intervention from the RBI to avert a potential credit squeeze.

3. Investment and Growth:

• Private Capex Uncertainty: Private sector investment optimism remains 'tepid'. Investment intentions fell in 2024-25, and companies remain cautious due to global geopolitical and trade tensions, especially the uncertainty caused by Trump tariffs.
• FDI Environment: To fuel economic growth, the government is planning to simplify FDI processes and reduce red tape, recognizing that FDI brings essential capital, technology, and expertise. While FDI inflows rose 15% in Q1 FY26, this growth rate has slowed compared to the previous year.
• GDP Growth: Despite headwinds, India's FY26 GDP growth forecast has been revised upwards to 6.5% by agencies like Icra. This growth is supported by increased government capital expenditure and strong domestic consumption boosted by recent fiscal relief measures (GST cuts, income tax relief).

High Skilled Migration to the United States and its Economic consequences

 High-skilled immigrants (HSIs) play a crucial and growing role in the U.S. economy, particularly within the scientific and technological landscape, generating complex economic consequences related to innovation, aggregate growth, and the distribution of earnings.

The study of high-skilled migration to the U.S. requires an integrated approach, drawing on insights from macroeconomics, labor economics, industrial organization, and international trade, moving beyond static, partial-equilibrium contexts often used in immigration research.

I. Role of High-Skilled Immigrants in Innovation and the Workforce

Rising Presence and STEM Focus: HSIs represent an increasing proportion of the U.S. workforce, particularly in science and engineering. The share of foreign-born workers in Science, Technology, Engineering, and Mathematics (STEM) occupations expanded significantly, rising from 6.6% in 1960 to 28.1% in 2012.

HSIs are fundamental to the U.S. innovation ecosystem:

• They raise the quality and quantity of basic science performed in U.S. universities.
• They contribute to the creation of new ideas, designs, and patents that are commercialized by U.S. industries.
• Because HSIs are drawn to STEM fields, they are considered likely inputs into U.S. innovation. Foreign-born professionals have become a vital part of the U.S. R&D labor force.
• Among workers with advanced degrees in STEM, the foreign-born presence is particularly high: they accounted for 54.5% of STEM employment among PhDs and 40.7% among master's degree holders in 2013. Since the mid-2000s, immigrants have constituted the majority of U.S. workers in STEM with doctoral degrees.
• In computer-related fields, such as software development and programming, the foreign born make up the majority of U.S. workers in STEM jobs with a master's degree or higher.

Comparative Advantage and Entry: Highly educated immigrant workers exhibit a strong revealed comparative advantage in STEM occupations. This specialization is significantly stronger in computer-related occupations than in STEM fields generally.

While HSI patenting rates are higher than those of natives, this differential disappears when controlling for major field of study, suggesting their comparative advantage is linked to their proclivity for studying STEM disciplines in university. U.S. universities serve as a pipeline, attracting foreign students, training them in STEM, and integrating them into the U.S. labor force. The pattern of HSIs arriving in the U.S. at age 21 or older is consistent with the H-1B visa acting as an important channel for entry into the STEM labor market.

II. Economic Consequences of High-Skilled Migration

High-skilled immigration introduces economic dynamics that are distinct from those of low-skilled immigration and are arguably more consequential due to the potential link between immigrants and productivity-enhancing innovation.

1. Aggregate Economic Growth and Productivity

The flow of high-skilled workers between countries is considered a first-order determinant of the pace of global economic growth.

• Positive Role in Growth: Research presented in the sources consistently finds a positive role for immigration in generating aggregate economic growth.
• Productivity and Innovation: U.S. states and localities that attract more high-skilled foreign labor see faster rates of growth in labor productivity. Studies have also linked the temporary expansion of the H-1B program (1999-2003) to increases in patenting, particularly among Chinese and Indian inventors.
• Income and Output: One study found that between 1994 and 2001, high-skilled foreign workers increased the overall income of U.S. native-born workers, while also raising output and lowering prices in the information technology (IT) sector.

2. Wages and Distributional Effects

High-skilled immigration affects the distribution of income and employment. Studies examining market adjustment account for multiple factors, including firm dynamics, worker educational choices, and business selection over product mix, which together determine productivity growth.

• Inequality: Despite generating overall growth, high-skilled immigration has substantial distributional consequences. However, dynamic models suggest that high-skilled immigration—especially in the presence of endogenous growth—tends to attenuate increases in skill-based inequality by placing downward pressure on the wage gap between high- and low-skilled workers.
• Impact on Native Workers: In the short run, one model suggests that the introduction of high-skilled immigration reduces the wage premium of high- to low-skilled workers. Historically, there were substantial distributional consequences: U.S.-born workers shifted out of computer science as wages in that occupation fell relative to the expected outcome absent immigration, although owners of factors of production that complement computer scientists saw increased wages.

3. Native vs. Immigrant Earnings

The perception that foreign-born workers accept lower wages, thereby depressing earnings in STEM, is a central concern in policy debates.

• Wage Parity in STEM: While foreign-born workers earn substantially less than native-born workers in non-STEM occupations, the native-foreign born earnings difference is much smaller in STEM jobs.
• Assimilation: Foreign-born workers in STEM fields achieve earnings parity with natives in less than a decade, contrasting sharply with non-STEM jobs where parity may require 20 years or more. Immigrant STEM workers with six or more years in the U.S. often begin earning more than their native-born counterparts. This lack of a persistent wage discount for HSIs in STEM occupations challenges the claims of critics of the H-1B program.

III. Migration Mechanisms and Market Adjustment

The full impact of HS immigration depends on the state of technology, market structure, and policies that impact the flows of labor, goods, and capital.

Policy and Firm Structure: Visa policies, such as the H-1B program and L visas, influence the temporary and permanent flow of workers. Multinational enterprises (MNEs) have an advantage in accessing the global talent pool by utilizing the relatively unconstrained L visas, while other firms rely on the oversubscribed H-1B program. One theoretical implication is that greater access to foreign workers via high-skilled visas can actually increase firm-level demand for native-born high-skilled workers.

Alternatives to Physical Migration: Globalization does not rely solely on the physical migration of labor. Digital markets and contests increasingly serve as an alternative platform for employers to identify and utilize skills from abroad, indicating that employers' access to the global talent pool is not solely dependent on physical migration. Intriguingly, these online employment exchanges appear to complement immigration, not substitute for it.

Adjustment Dynamics: The dynamics of adjustment affect the ability to predict how policy changes will impact economic growth and earnings distribution. In dynamic models, immigration encourages firm entry in the short run, which generates increased capital investment, resulting in a near-term drop in consumption until the economy reaches a new stationary equilibrium characterized by higher income and consumption levels.

However, despite abundant evidence of overall gains from high-skilled immigration and associated innovation, many questions remain regarding distributional consequences and the precise impact of immigration policies, due partly to limited data distinguishing entry channels (e.g., family-based, student, H-1B, or employer-sponsored visas).

Stock Market Trends - Newspaper Summary

 The sources provide a comprehensive view of the Indian stock market outlook and highlight key sectoral trends, placing them within the context of challenging global cues, high domestic valuations, and shifts in investor preference.

Stock Market Outlook (Nifty, Sensex, and Mid/Small-Caps)

The overall market outlook is currently characterized by near-term weakness and caution, contrasted with an intact long-term bullish view.

Near-Term Weakness and Global Headwinds

The benchmark indices, Nifty 50 and Sensex, have been struggling over the last few months. The short-term picture is weak, reflecting significant sell-offs.

• Benchmark Performance and Drivers: In the previous week, the Nifty 50 and Sensex indices both fell about 2.7 per cent, and the Nifty Bank index dropped 1.9 per cent. These declines came despite an expected recovery at key support levels. Key reasons cited for this weakness include:
  • Challenging global cues, penal trade tariffs, and geopolitical tensions.
  • Strong foreign money outflows (FPIs), with FPIs pulling out about $1 billion from Indian equities last week. The year-to-date net outflow stands at $16.91 billion, surpassing the $16.5 billion outflow recorded in the entire calendar year 2022 (the worst in history based on data since 2002).
  • The US increasing the import tariff on India from 25 per cent to 50 per cent last month.
• Futures and Options (F&O) Data: Derivative data supports a bearish inclination for the Nifty 50 and Nifty Bank, primarily due to fresh short build-up in index futures and a higher number of call options writing (a bearish signal), despite the charts suggesting potential near-term consolidation.
• Technical Support Levels: While the immediate outlook is negative, key support levels are noted for potential bounces:
  • Nifty 50 support is at 24,500, with a critical level at 24,100, below which a steep fall to 23,500 is possible.
  • Sensex support is at 79,500 and 79,200.
  • Nifty Bank index support is in the 54,100-54,000 zone.

Mid- and Small-Cap Caution

The mid- and small-cap indices have experienced sharp declines recently, even though they have received disproportionate inflows over the past year.

• Recent Weakness: The Nifty Midcap 150 index fell over 4 per cent, and the Nifty Smallcap 250 index tumbled over 7 per cent last week.
• High Valuations: These market segments are trading at significantly elevated valuations (Nifty Small Cap 250 TRI at a PE of 31.5 and Nifty Midcap 150 TRI at a PE of 32.1) compared to large-caps (Nifty 100 TRI at a PE of 21.3).
• Investor Strategy: Investors are advised to "exercise caution" with mid- and small-cap funds and allocate a greater portion of a balanced long-term portfolio toward large- and flexi-cap mutual funds. Large-caps offer "relative comfort" while smaller caps trade expensively.

Long-Term Optimism

Despite short-term weakness, the broader bullish view for the large indices remains intact.

• Nifty Targets: The Nifty is expected to target 28,000–29,000 over the medium term and 31,000 in the long term, provided it stays above the cluster of supports in the 23,000–24,000 region.
• Sensex Targets: The Sensex is projected to target 88,000–89,000 in the medium term and 91,000–92,000 in the long term, contingent on it sustaining above the 77,000 support level.

Sectoral Performance and Outlook

Sectoral indices have shown wide divergence, with some significantly outperforming and others being heavily beaten down, illustrating that opportunities exist irrespective of benchmark index performance.

Outperforming and Underperforming Sectors (Year-to-Date)

• Outperformers: The BSE Auto index and BSE Metal index surged about 14 per cent and 13 per cent, respectively, so far this year.
• Underperformers: The BSE IT index and BSE Realty index tumbled about 23 per cent and 18 per cent, respectively, year-to-date. In the past week alone, BSE IT lost the most (7.3 per cent), followed by BSE Realty (6.1 per cent).

Top Five Technically Recommended Sectors

Based purely on Technical Analysis, the sources recommend five sectors expected to outperform over the next couple of years:

Sectoral Index	Current Price	Action Advised	Long-Term Target (1-2 years)	Stock to Watch
BSE Industrials	14,696	Buy now; accumulate on dips at 14,300	20,000–22,000	PTC Industries
BSE Capital Goods	68,346	Buy now; accumulate on dips at 66,800	91,000–92,000	Mazagon Dock Shipbuilders
BSE India Manufacturing	1,042	Buy now; accumulate at 1,030	1,400	Oil and Natural Gas Company (ONGC)
BSE CPSE (Central Public Sector Enterprises)	3,766	Buy now; accumulate on dips at 3,680	5,350–5,400	NLC India
BSE PSU (Public Sector Undertakings)	19,409	Buy now; accumulate on dips at 19,200	24,000–24,500	Steel Authority of India Ltd. (SAIL)

Specific Corporate/Sectoral Insights

1. Auto Components (Large-Cap): Samvardhana Motherson International (SAMIL) is a large-cap auto-parts supplier with global exposure. While the stock is susceptible to the ongoing slowdown in auto markets in the US and Europe (which impacted Q1 FY26 earnings), markets in India and China are performing better. The company’s prospects depend on global OEM volume growth, but its strategy of strong inorganic growth (over 15 global acquisitions) and commissioning 11 greenfield facilities in FY26 and FY27 signal optimism. Investors are advised to accumulate the stock on dips of 15 per cent or more due to a better margin of safety at those levels.
2. White Goods/Electronics: PG Electroplast Ltd is investing approximately ₹1,000 crore over five years to establish an integrated manufacturing campus for white goods (such as ACs and washing machines) in Sri City, Andhra Pradesh.
3. Oil & Gas / Energy: An F&O strategy recommends buying the October 172.50-call for Gail (India) due to healthy rollover of long positions and a significant premium in futures. The stock of Gail (India) is ruling at a crucial support level of ₹165. ONGC is the stock highlighted for the BSE India Manufacturing index.
4. Specialized Investment Funds (SIFs): The emergence of SIFs, offering high-risk, high-return strategies with the ability to take naked short positions up to 25 per cent of assets (a unique feature unavailable to traditional mutual funds), indicates a regulatory move to deepen investment options for sophisticated investors (minimum investment ₹10 lakh). This development reflects increasing risk tolerance and sophistication in the investment landscape.

Mutual Fund Flows - Newspaper Summary

 The sources highlight a significant trend in the Indian financial market where domestic mutual fund (MF) inflows are heavily skewed towards Mid- and Small-cap schemes, occurring despite challenging external macroeconomic factors and the high valuations of these market segments.

Here is a detailed discussion of the Mutual Fund Market Trends concerning Mid- and Small-cap categories within the broader investment landscape:

1. Robust Inflows Despite Cautionary Market Context

The strong flow of domestic capital into mid- and small-cap funds is notable because it runs counter to prevailing market headwinds:

• Challenging Global and Domestic Backdrop: The Indian market overall is characterized by challenging global cues, including penal trade tariffs hitting exporters, geopolitical tensions, and strong foreign money outflows.
• Foreign Institutional Investor (FPI) Behavior: Foreign Portfolio Investors (FPIs) are observed to be continuing a selling spree. In contrast, domestic investors are exhibiting an "increased risk appetite" by pouring money into the smaller cap segments.
• Quantitative Data on Inflows: Over the 12 months leading up to August 2025, small-cap schemes received ₹93,499 crore in gross inflows, resulting in ₹51,874 crore in net inflows (after redemptions). Mid-cap mutual funds received similar amounts, with ₹93,287 crore gross and ₹50,174 crore net inflows.
• Contrast with Large-Caps: This activity contrasts sharply with the large-cap segment, which received only ₹68,105 crore in gross inflows and a much lower ₹28,766 crore in net inflows during the same period, suggesting that investors were selling large-cap funds more aggressively than mid- or small-cap funds.

2. High Valuations and Investor Risk Appetite

A core finding is that investors appear willing to overlook high valuations when investing in these categories:

• Elevated Price-to-Earnings (PE) Multiples: As of August 2025, the Nifty Small Cap 250 TRI trades at a PE multiple of 31.5, and the Nifty Midcap 150 TRI trades at a PE multiple of 32.1.
• Discount in Large-Caps: In stark contrast, the large-cap Nifty 100 TRI trades at a PE of 21.3. This means the mid- and small-cap benchmarks trade at a significant premium to their large-cap counterparts.
• Investor Sentiment: The decision by investors to "plough in money at elevated valuations indicates increased risk appetite and a belief that returns will come in the long term".
• Impact of IPOs: The entry of mid- and small-cap companies through Initial Public Offerings (IPOs) at high multiples, which are subsequently included in the indices, may have contributed to the overall increase in benchmark valuations.

3. Performance and Risk Mitigation by Active Funds

Despite the broader indices experiencing market corrections, active mutual fund management has demonstrated resilience:

• Index Performance (1-Year): In the last one year, the Nifty Small Cap 250 index fell the most (7.4 per cent), followed by the large-cap index (4.4 per cent), and the Nifty Midcap 150 index (3.8 per cent).
• Active Fund Outperformance: Active funds, especially in the mid- and small-cap categories, have managed to contain the downsides better than their underlying indices in a turbulent year.
  • Active small-cap funds fell by an average of only 4.8 per cent (compared to the index fall of 7.4 per cent).
  • Active mid-cap funds declined by only 3.2 per cent (compared to the index fall of 3.8 per cent).
• Investment Route: Since many small-cap funds have closed lumpsum investments, most investors are likely taking exposure via the Systematic Investment Plan (SIP) route.

4. Strategic Recommendations for Investors

Given the high valuations and risk in the smaller cap segments, the sources advocate for a cautious, diversified approach:

• Exercise Caution: Investors are advised to "exercise caution with mid- and small-cap funds".
• Portfolio Tilt: Building a balanced long-term portfolio should feature a greater tilt towards large- and flexi-cap mutual funds.
• Large-Cap Comfort: With small- and mid-caps trading expensively, large-caps are seen as offering "relative comfort". For instance, large-cap companies like Samvardhana Motherson International (SAMIL), despite being susceptible to global slowdowns, offer a better margin of safety at lower levels, making accumulation on dips advisable.

Corporate and Policy News - Newspaper Summary

 The sources provide extensive corporate and policy news, positioning them within the larger context of the Indian financial market, which is characterized by challenging global cues, ongoing foreign capital outflows, but persistent domestic investor interest, particularly in certain segments.

Policy News and Macroeconomic Context

Policy developments, both international and domestic, are significantly influencing the market landscape:

1. International Trade, Tariffs, and Capital Flows

The Indian stock market is currently weighed down by challenging global cues, including penal trade tariffs hitting exporters, geopolitical tensions, and strong foreign money outflows.

• Tariffs and Outflows: The US increased the import tariff on India from 25% to 50% last month. This external pressure, coupled with the strong foreign money outflow, is affecting the Indian stock market. The Indian equity segment has seen a net outflow of $16.91 billion year-to-date, exceeding the $16.5 billion outflow recorded for the entire calendar year 2022 (the worst in history based on data since 2002). Last week alone, Foreign Portfolio Investors (FPIs) pulled out about $1 billion from Indian equities.
• Monetary Policy Convergence: The US Federal Reserve recently implemented its first policy easing since December 2024 by cutting rates by 25 basis points (to 4.00–4.25 per cent range). Theoretically, this rate cut should widen rate differentials and attract higher foreign inflows to emerging markets like India, though flows practically depend on factors like the weakening rupee and tariff disputes.
• Trade Agreements: Negotiations are ongoing for the proposed India-Oman Comprehensive Economic Partnership Agreement (CEPA). A critical sticking point is India’s demand for relaxation in the Omanisation policy, which sets mandatory employment quotas for Omani nationals in the private sector. Finalizing the CEPA is expected to boost Indian exporters in sectors such as iron and steel, electronics, and machinery by making duties duty-free (opposed to the current 5% duty).
• Sovereign Ratings: India received its third rating upgrade in 2025 when the Japanese agency R&I upgraded its long-term sovereign rating to ‘BBB+’ from ‘BBB’. This signals improving government debt metrics.

2. Domestic Monetary Policy and Liquidity

The Reserve Bank of India (RBI) has actively managed domestic financial conditions:

• Rate Cuts and Liquidity: The RBI has cut the repo rate by a cumulative 100 basis points since February to 5.5 per cent. Liquidity conditions remain abundant, with the average banking system surplus standing at ₹2.2 trillion in September, supported by a phased 100 basis points Cash Reserve Ratio (CRR) cut. This CRR reduction is expected to inject nearly ₹2.5 lakh crore of primary liquidity into the system by December 2025.
• Bond Market Impact: The RBI’s careful management, including reducing the supply of long-term bonds in the H2 FY26 borrowing program, is seen as bullish for Indian government bonds, helping the 10-year benchmark G-sec yield ease to 6.5 per cent over the past month.

3. Financial Sector Regulation (SEBI and RBI)

Policy news includes significant regulatory changes impacting investment vehicles and digital infrastructure:

• Specialized Investment Funds (SIFs): SEBI approved SIFs in February, creating a new, high-risk, high-return strategy vehicle for sophisticated investors requiring a minimum investment of ₹10 lakh. Critically, SIFs are unique because they are permitted to take naked short positions up to 25 per cent of assets, which traditional mutual funds (MFs) cannot do (except for hedging). Several major fund houses, including SBI MF (Magnum brand) and Edelweiss MF (Altiva brand), are launching these funds.
• Digital Payment Security: The RBI issued new guidelines for digital payment transaction authentication. Fintech firms welcomed this as a forward-looking framework that moves beyond traditional SMS OTPs to advanced methods like biometrics and AI-driven risk-based checks. This is expected to strengthen security and build consumer trust, especially in semi-urban and rural areas.

Corporate News and Sectoral Developments

Corporate news highlights specific investment opportunities, strategy shifts, and progress in key industrial and infrastructure sectors:

1. Infrastructure, Defence, and Technology

Major announcements emphasize indigenous growth and infrastructure development:

• Defense/Infrastructure: Prime Minister Modi inaugurated BSNL’s ‘Swadeshi’ 4G stack in Odisha, joining a small group of nations that manufacture telecom equipment. This indigenous network is cloud-based, future-ready, and seamlessly upgradable to 5G.
• Aviation: Air India is launching an in-house flight simulator facility at its Gurugram academy to boost pilot training capacity, aiming to reduce reliance on overseas facilities and address the need for an estimated 10,000 additional pilots over the next decade.
• Manufacturing: PG Electroplast Ltd is investing approximately ₹1,000 crore over five years to set up an integrated manufacturing campus for white goods (like ACs and washing machines) in Sri City, Andhra Pradesh.

2. IPO Activity and Corporate Strategy

The investment landscape includes activity in primary markets and updates on globally exposed companies:

• TruAlt Bio Energy IPO: This ethanol producer is raising ₹750 crore in primary capital, driven by its expansion into dual-feed ethanol plants and the traction gained by its Compressed Bio Gas (CBG) business under the government's SATAT scheme. Although the company faces the key concern of high leverage (debt-to-equity ratio of 2x pre-issue), the valuation (24x FY25 earnings) is offered at a discount to peers.
• Samvardhana Motherson International (SAMIL): As a large-cap auto-parts supplier with global exposure, SAMIL's business prospects depend heavily on global OEM volume growth. Despite recent challenges from a slowdown in auto markets in the US and Europe (evidenced by weak Q1 FY26 numbers), the company has a strategy focused on strong inorganic growth (over 15 global acquisitions) and numerous greenfield facilities scheduled for commissioning in FY26 and FY27. The stock is recommended for accumulation on dips due to a better margin of safety at lower levels.

Investment Landscape Implications

The confluence of corporate performance and policy dictates the current investment strategy:

• Risk Appetite vs. Valuations: Even as large indices struggle and foreign funds pull money out, the sources observe robust flows into domestic mid- and small-cap mutual funds, despite these categories trading at significantly high valuations (PE multiples of 31.5-32.1). This disproportionate share of inflows indicates an increased risk appetite among domestic investors and a belief in long-term returns.
• Shift to Large-Caps for Safety: With small- and mid-caps viewed as expensive, large-caps are seen as offering relative comfort. Investing caution is recommended, suggesting that balanced long-term portfolios should lean more towards large- and flexi-cap mutual funds.
• Investment Vehicle Selection: Comparative analysis suggests that Mutual Funds (MFs) generally outperform ULIPs across equity, debt, and hybrid categories due to MFs having stricter SEBI mandates, broader research teams, and lower expense leakage (as ULIP charges such as premium allocation and mortality eat into returns).

Overall, the Indian financial market is navigating external policy hurdles (tariffs, FPI outflows) and internal market dynamics (high mid/small-cap valuations) while benefiting from domestic policy initiatives (RBI liquidity, infrastructure push) and new regulatory frameworks (SIFs, payment security) aimed at deepening the market and encouraging sophisticated investment.

Corporate and Tech Developments - Newspaper Summary

 The provided sources detail significant Corporate and Technological developments in India during September 2025, set against a backdrop of domestic reforms, major regulatory shifts, and challenging global economic headwinds related to trade and immigration policy.

I. Corporate Restructuring and Major Legal Finality

Indian businesses are undertaking complex corporate restructuring and achieving legal finality in long-pending disputes, signaling momentum in the business landscape.

Corporate Reorganization

• Tata Motors Demerger: The National Company Law Tribunal (NCLT) sanctioned the composite scheme of arrangement for Tata Motors Limited (TML). This scheme involves the demerger of the commercial vehicles (CV) business and the amalgamation of the passenger vehicles (PV) vertical (which includes PV, Electric Vehicle (EV), and Jaguar Land Rover (JLR) businesses).
  • Effective October 1, 2025, Girish Wagh is slated to lead TML Commercial Vehicles Ltd as MD and CEO, while Shailesh Chandra will lead the passenger vehicle entity as MD and CEO.
• Volkswagen Overhaul: The Volkswagen Group (VW) is planning to overhaul its business in India due to market pressures, growing competition, and policy changes. This comes as VW grapples with India's biggest-ever import tax demand of $1.4 billion for allegedly evading levies.

Landmark Insolvency Resolution

The Supreme Court delivered a critical ruling that resolved one of India’s longest-running insolvency cases, reinforcing the sanctity of commercial decisions under the Insolvency and Bankruptcy Code (IBC).

• JSW Steel Acquires BPSL: The Supreme Court upheld JSW Steel’s ₹19,700 crore resolution plan for bankrupt Bhushan Power and Steel Ltd (BPSL). This ruling concluded a protracted legal battle, confirming the commercial wisdom of the Committee of Creditors (CoC) must be respected.
• Clarification on Earnings: The court clarified that earnings generated during the Corporate Insolvency Resolution Process (CIRP), such as EBITDA, that were not explicitly included in the approved resolution plan, belong to the corporate debtor, not dissenting creditors.

PSU Stake Battles

• PTC India Stake Sale: NTPC’s proposal to buy out the stakes of co-promoters in controversy-hit PTC India Ltd has stalled because NHPC Ltd is unwilling to sell its shares. NHPC’s decision to hold onto its stake is influenced by the good dividends received from PTC India.

II. Technology, AI, and Digital Infrastructure

Technology development and digital transformation are central to India's current business landscape, focusing heavily on indigenous production and the emerging impacts of AI and Web3.

Indigenous Telecom Success

India has made significant strides in achieving self-reliance in telecom technology:

• BSNL Swadeshi 4G Stack: The state-owned operator BSNL formally launched its 4G services using India-made technology. The indigenous 4G stack, which is 5G upgradable, was developed by Tejas Network (Radio Access Network), C-DOT (core network), and integrated by Tata Consultancy Services (TCS).
• Global Recognition: The Communications Minister noted that this achievement positions India among the “big four” and the fifth country in the world to produce and manufacture telecom equipment. The new network covers over 20 million people and 26,700 unconnected villages.

AI and Workplace Transformation

Generative AI is increasingly permeating the Indian workplace and raising societal concerns:

• Office Augmentation: AI is changing workplace behavior, terminology, and assumptions, though not yet achieving the scope envisioned by the "metaverse". Routine tasks are being automated, leading to monitoring of employee AI adoption. Analysis suggests interactions are moving from "augmentation" (collaborative feedback) to "automation" (directive commands).
• Mental Health Implications: Psychologists are treating "AI-primed clients"—individuals who consulted AI chatbots for mental health issues before seeking professional help. While AI offers access to support, professionals warn of grave risks due to faulty counsel, misinformation, overreliance, and the fact that generative AI mimics warmth but cannot feel it, potentially worsening mental health issues.

Web3 and Blockchain

• Polygon Labs' Growth: Sandeep Nailwal, co-founder of Polygon Labs, emphasizes India’s potential to lead the crypto wave, though policy paralysis remains a hurdle. Polygon, a scaling solution for Ethereum, acts as a decentralized infrastructure likened to Amazon Web Services for Web3.
• Market Use: Polygon boasts 8 million monthly active wallets and processes over 3.5 million transactions daily. Global brands like Nike, Reddit, and Flipkart utilize the platform. Nailwal also posits that blockchain can serve as a check-and-balance layer to keep Artificial General Intelligence (AGI) loyal to human values.

Sectoral Digital Innovation

• Language Translation (Bhashini): Bhashini, an AI-powered language translation platform, won the Digital Transformation Changemaker Award. It facilitates real-time translation in 22 scheduled Indian languages, handling around 20 million requests daily.
• Agri-Tech: Kalyani Shinde, winner of the Young Changemaker Award, founded Godaam Innovations, India’s first Internet of Devices (IoT)-based onion storage solution. This device monitors microclimate factors like humidity and gases to detect spoilage early, preventing massive post-harvest losses.
• Messaging App: Zoho Chief Scientist Sridhar Vembu announced that their homegrown messaging app, Arattai, is being developed to offer outstanding privacy and security, capable of functioning even on low-end phones with bandwidth as low as eight kilobits per second.

III. Startup and Venture Capital Landscape

The sources highlight continued dynamism in the startup ecosystem, characterized by ambitious growth targets and shifting allegiance away from US-based accelerators.

Scale and Ambition

• Underestimating Indian Market: Rajan Anandan, managing director at Peak XV Partners, argues that investors consistently underestimate the scale Indian startups can achieve. He projects that within a decade, companies valued at up to ₹10,000 crore will be commonplace, driven by India achieving a $7–8 trillion GDP.
• Growth Drivers: This growth momentum reinforces the need for strategic development, particularly in the consumer space, aided by GST cuts boosting consumption and an early-stage funding boom.

Accelerator Dynamics

• YC’s Diminishing Role: The appeal of US-based accelerator Y Combinator (YC) for Indian founders is shrinking, with cohorts decreasing by over 70% recently. Key issues cited include YC's policy requiring Indian founders to register the startup abroad (e.g., Delaware), complicating local follow-on funding and domicile flipping. Investors also deem YC’s standard deal terms (7% dilution for $125,000) as "punitive".
• Local Alternatives Rising: Indian VCs and local founder networks have blunted YC’s historic advantages. Competing domestic programs, such as Sequoia’s Surge, Accel Atom, and Kalaari Capital’s K-Start, offer better valuations and founder-friendly terms. Peak XV’s Surge program launched its 11th cohort, heavily focused on 12 AI startups.

Funding Highlights

• EdTech and Food Tech: EdTech unicorn Vedantu raised $11 million in an internal funding round. Food-tech firm Curefoods secured ₹160 crore in a pre-IPO round, notably involving Binny Bansal’s 3StateVentures.

IV. Manufacturing, Defense, and Global Trade Friction

Corporate developments are inextricably linked to India’s Atmanirbhar Bharat (self-reliance) push and challenges arising from foreign trade policies.

Solar Manufacturing and Trade Controversy

• US Capacity Expansion: Waaree Energies Ltd, whose US order book exceeds half of its total ₹49,000 crore order book, acquired a 1GW solar module assembly unit in the US for $18.5 million. This helps diversify its technology base in the US.
• Regulatory Scrutiny: Waaree is facing a formal investigation by US Customs and Border Protection regarding allegations of evading anti-dumping and countervailing duties on solar cells imported from China and other Southeast Asian nations by wrongly declaring them as India-made. Waaree is cooperating with the ongoing investigation.

Defense Self-Reliance

• DRDO Achievements: The Defence Research and Development Organisation (DRDO) demonstrated the decisive operational capability of its homegrown systems during Operation Sindoor, utilizing technologies like the Akash missile system and anti-drone systems. DRDO aims to move India toward minimal imports and increased defense exports.
• Aerospace Collaboration: In pursuit of the Advanced Medium Combat Aircraft (AMCA) program, a consortium comprising BEML, Bharat Forge Ltd (BFL), and Data Patterns (India) Ltd formalized a partnership to bid for the project.
• Foreign Investment in Supply Chain: French aerospace giant Thales integrated over 75 local suppliers into its global network, with purchasing volume from India exceeding €250 million in 2024. This supports the 'Make in India' and 'Export from India' vision by enhancing high-value work, such as avionics development and radar software.

FMCG and Automotive Industry Shifts

• HUL GST Impact: Following the Goods and Services Tax (GST) rate rationalization, FMCG major Hindustan Unilever Ltd (HUL) anticipates a temporary market disruption causing its sales growth to be near flat- to low-single digit for the quarter ending September 30, 2025, due to distributors clearing old inventory.
• Automobile Fuel Norms: The Bureau of Energy Efficiency (BEE) issued a draft of the new Corporate Average Fuel Efficiency (CAFE-3) norms (2027-32), which notably grants special treatment to small cars and offers incentives for strong hybrid and flex-fuel vehicles.

Online Gaming Regulatory Crisis

The Promotion and Regulation of Online Gaming Act, 2025, which bans real money games, has led online gaming companies to claim their businesses are shut down, and they are seeking urgent hearing and interim relief from the Supreme Court. The government defends the regulation, citing serious social harm from addiction and financial losses, as well as risks of money laundering and potential terror financing.

Context of US Trade Friction

The entire business landscape is shadowed by US trade and immigration policies. The US announcement of 100% duties on branded drugs and a hefty $100,000 fee on new H-1B visa petitions caused the benchmark Nifty and Sensex indices to tumble. Information technology (IT) stocks were hit particularly hard due to concerns over visa changes and slowing IT spending (as highlighted by Accenture’s weaker guidance).

• The Ministry of External Affairs (MEA) is engaging with the US administration, hoping the contribution of skilled Indian talent to innovation and economic growth will receive due consideration.
• Despite these "speed bumps," a senior JPMorgan executive affirmed that India’s growth trajectory remains strong due to its young population, robust domestic consumption, and consistent government policy.

India Financial Policy - Newspaper Summary

 The sources provide extensive information on Indian financial policy, contextualized within ongoing economic activity, regulatory shifts, and significant global trade headwinds.

I. Macroeconomic and Fiscal Policy

India's financial policies are characterized by a commitment to fiscal prudence alongside structural reforms aimed at stimulating consumption and growth.

Fiscal Management and Government Borrowing

The government aims to maintain fiscal stability by adhering to its budgetary targets.

• Fiscal Deficit: The government has reaffirmed its commitment to meet the fiscal deficit target of 4.4% of GDP for FY26.
• Borrowing Program: The government, in consultation with the Reserve Bank of India (RBI), finalized the borrowing calendar for the second half of fiscal year 2026 (FY26), aiming to raise ₹6.77 trillion through dated securities between October 2025 and March 2026. The total gross borrowing for FY26 was slightly reduced to ₹14.72 lakh crore from initial estimates.
• Green Bonds: The borrowing plan includes ₹10,000 crore raised through sovereign green bonds (SGrBs) via two 30-year issuances scheduled for October and November.
• Yield Curve Management: The Centre plans to offer sovereign bonds across maturities (3, 5, 7, 15, 30, 40, and 50 years) to maintain a balanced yield curve, with ten-year bonds forming the backbone of the strategy.

Taxation and Consumption Boost

Recent fiscal policy included significant tax reform intended to bolster domestic demand.

• GST Rationalization: India reformed its indirect tax system in August 2025, rationalizing the Goods and Services Tax (GST) slabs to 5%, 18%, and 40%, and moving several product categories to lower rates.
• Economic Impact: The finance ministry views regulatory reforms and infrastructure development as key to sustaining India’s growth momentum. The GST overhaul is expected to boost consumption, especially ahead of the festive season. A Finance Ministry report stated that this tax rationalization is expected to lower the tax burden on consumers, boost consumption, improve demand visibility for firms, and potentially lead to a one-time reduction in retail inflation over the next year.

II. Monetary Policy and Financial Sector Regulation

Policy commentary suggests a delicate balance is being struck between maintaining low inflation and supporting growth, particularly concerning lending rates and liquidity.

Monetary Stance and Rate Cuts

• Inflation Outlook: India's price situation is described as "extremely benign" and retail inflation was low (2.07% in August), remaining well below the median target rate of 4%.
• Policy Imperatives: Despite resilient real GDP growth (7.8% in Q1 FY26), India's growth remains below its potential (7–7.5%). The RBI's monetary policy transmission has slowed due to a neutral policy stance since June 2025, leading to India having one of the highest real policy rates among its peers.
• Rate Cut Opportunity: Given the benign inflation forecast, the Monetary Policy Committee (MPC) has an opportunity to cut the repo rate by 25 basis points (bps) in October. A dovish forward guidance would also be needed to accelerate transmission to lending rates and yields.

Non-Banking Financial Companies (NBFCs)

NBFCs play a crucial role in economic credit mediation, presenting unique challenges for policy transmission.

• Monetary Transmission: NBFCs facilitate monetary policy transmission to the broader economy, although indirectly, as they lack direct access to the RBI's liquidity adjustment facility (LAF) window.
• Cost of Funds: NBFCs rely on bank and market borrowings, meaning that repo rate reductions may not immediately translate into reduced costs of funding due to factors like liquidity conditions and perceived riskiness. Empirical analysis suggests that monetary policy transmission to NBFC lending rates is incomplete; a one percentage point change in the repo rate is linked to only a 0.33 percentage point change in the NBFC weighted average lending rate (WALR) over three quarters.
• Risk Management: The introduction of the Liquidity Coverage Ratio (LCR) is expected to strengthen NBFCs' short-term resilience.

Capital Markets and IPO Regulation

The Securities and Exchange Board of India (SEBI) introduced key reforms to boost institutional participation in the primary market.

• Anchor Investor Base Expansion: SEBI enlarged the base of anchor investors to include life insurance companies and pension funds.
• FPI Facilitation: The limit on the number of permissible anchor investor allottees was increased for larger allocations to address operational constraints faced by Foreign Portfolio Investors (FPIs) with multiple funds.
• Mutual Fund Quota: The quota for mutual funds (MFs) in the anchor portion of an IPO has been increased from 33% to 40%.

Legal and Financial Landmark Rulings

The Supreme Court delivered finality in two major areas: insolvency and dividend taxation.

• Insolvency (IBC): The Supreme Court upheld JSW Steel’s ₹19,700 crore resolution plan for Bhushan Power and Steel Ltd (BPSL), concluding one of India's longest insolvency battles. This ruling affirmed the commercial wisdom of the Committee of Creditors (CoC) and is expected to bolster investor confidence. Crucially, the court clarified that earnings generated during the Corporate Insolvency Resolution Process (CIRP) in circumstances not defined in the plan, such as EBITDA, belong to the corporate debtor.
• Dividend Taxation: The Supreme Court dismissed a curative petition filed by Nestle, upholding an earlier ruling that a Double Taxation Avoidance Agreement (DTAA) cannot be enforced unless explicitly notified under Section 90 of the Income Tax Act. This impacts several foreign multinational corporations (MNCs) that face demands for higher taxes on dividends.

III. International Economic and Regulatory Updates

India is navigating external economic friction points, primarily driven by US policy decisions regarding trade and immigration.

US Tariffs and Trade Uncertainty

US President Donald Trump announced new tariffs, including a 100% levy on branded drugs and a 25% levy on heavy-duty trucks and furniture, effective from October 1.

• Market Reaction: Benchmark indices, including the Sensex and Nifty, tumbled nearly 1%, marking the sixth consecutive day of decline, with pharmaceutical and IT shares being heavily hit.
• Impact on Indian Pharma: Industry officials largely believe the impact on Indian pharmaceutical exports will be minimal, as the country primarily ships generic medicines to the US. Branded or patented drugs account for only 1–3% of Indian exports to the US. However, stakeholders are awaiting the official US legal documents for complete clarity.
• Mitigation Strategy: Many large Indian pharma companies already operate US manufacturing or repackaging units, which might exempt them from the new levies.

Immigration Policy and H-1B Visas

Changes to the H-1B visa policy pose significant friction.

• H-1B Fee Hike: The US announced a one-time fee of $100,000 on new H-1B visa petitions from next year, a dramatic increase from the current fee structure. This move disproportionately affects India, as over 70% of H-1B holders are Indian citizens.
• Visa Data: Data shows that in 2024 (October-September), the Indian share of H-1B visas issued (68.6%) reached its lowest point in a decade.
• Government Response: The Ministry of External Affairs is actively engaged with the US administration, hoping that the contribution of skilled talent mobility to innovation and economic growth in both countries will be duly considered while framing the rules.

Trade Deals and E-commerce Policy

• India-US Trade Deal: India and the US have discussed the potential contours of a bilateral trade deal, with both sides aiming for an early conclusion of a mutually beneficial agreement.
• E-commerce FDI Rules: India’s government is drafting a proposal to ease foreign investment rules to allow e-commerce firms like Amazon to buy products directly from Indian sellers for sale to overseas customers. This move aims to resolve a long-standing dispute and promote global e-commerce exports by small Indian businesses.

IV. Growth Momentum and Sector-Specific Updates

Despite global uncertainties, a senior JPMorgan executive noted that US trade tariffs and visa changes are merely "speed bumps" and India’s growth trajectory is strong due to its young population, robust domestic consumption, and consistent government policy.

• Startup Investment Outlook: A managing director at Peak XV Partners noted that investors historically underestimate the scale Indian startups can achieve, predicting that in a decade, companies worth as much as ₹10,000 crore will be discussed. India at $7–8 trillion GDP is expected to create much bigger companies than at $4 trillion GDP.
• Corporate Restructuring: Tata Motors received approval from the National Company Law Tribunal (NCLT) for the demerger of its commercial vehicle (CV) business and the amalgamation of its passenger vehicle (PV) vertical, effective October 1.
• Solar Manufacturing: Waaree Energies acquired a 1GW solar module assembly unit in the US, strengthening its manufacturing footprint there, even as the company faces investigations regarding allegations of evading anti-dumping duties and violating patents related to solar cells.
• Online Gaming Regulation: Online gaming companies have approached the Supreme Court seeking urgent hearing and interim relief against the Promotion and Regulation of Online Gaming Act, 2025, arguing the law has shut down their businesses. The government justifies the regulation due to serious risks related to addiction, financial losses, money laundering, and potential terror financing.

Other Business Highlights - Newspaper Summary

 The sources reveal several critical "Other Business Highlights" in India's economic and business landscape as of September 2025, dominated by the widespread impact of GST reforms, significant shifts in capital flows and financial regulation, and corporate activity in automotive and specialized industries.

1. Impact of GST 2.0 and Consumption Surge

The recent "GST 2.0 reforms" are portrayed as a fundamental game-changer, designed to boost consumer confidence and consumption, leading to tangible results across various sectors.

Boost to Consumption and Premiumization

• The tax cuts lowered the simple average GST rate on essential consumption items from 11% to 9% under the new regime, providing a direct impact on consumer sentiment.
• This policy change is described as a "structural change in the economy" that will drive up domestic consumption and, consequently, GDP growth.
• Early trends across major e-commerce platforms confirmed this impact, showing a double-digit growth in sales year-on-year, surging by 23-25 per cent in the first two days of festival sales compared to a muted start the previous year.
• A key trend observed was premiumization, with strong demand for categories such as smartphones, large screen televisions, air-conditioners, and refrigerators. For Maruti Suzuki India (MSIL), the first day of GST 2.0 and Navratri saw them deliver more than 30,000 vehicles and secure over 75,000 bookings.
• The reforms are also expected to accelerate the shift from the unbranded segment to the branded segment, as the tax cuts put "extra money in the hands of the consumers," encouraging them to upgrade or move into newer categories.

Fiscal and Policy Implications

• The Finance Minister highlighted the GST reforms as prioritizing the "common man" and estimated the tax concessions would save households an estimated ₹48,000 crore at the first stage.
• However, the GST rate rationalization has raised major concerns from States, specifically Telangana and Kerala Finance Ministers, who argue it will severely compromise State finances, increasing their dependence on the Centre.
  • Telangana projected a loss of ₹6,500 crore to ₹7,000 crore, while Kerala projected a loss of ₹8,000 crore to ₹10,000 crore this fiscal year.
  • States are seeking a compensation mechanism and proposed levying an additional duty on sin and luxury goods to offset revenue loss.

2. Financial System and Capital Market Activity

Regulatory changes, financial flows, and corporate governance issues dominated the financial highlight section.

SEBI and Corporate Governance

• The Securities and Exchange Board of India (SEBI) is considering extending the facilities of Systematic Withdrawal Plans (SWP) and Systematic Transfer Plans (STP) to mutual fund units held in demat form, bringing parity with the statement of account mode.
  • Currently, demat investors must give repeated instructions for SWP/STP. The proposal involves a phased approach, starting with unit-based transactions and later moving to amount-based transfers.
• SEBI also issued a severe penalty against Gujarat-based Seacoast Shipping Services Ltd (SSSL) and its promoters for alleged fraudulent activities, restraining them from the capital markets for five years and ordering them to disgorge unlawful gains of ₹47.89 crore. The company was found to have published misrepresented financial statements, with over 85 per cent of sales recorded and 98 per cent of assets held in recent fiscal years being "not genuine".
• In the prominent case of the Adani Group, SEBI ruled that the company and its directors did not violate regulations on related party transactions (RPTs), insider trading, or market manipulation, according to legal principles based on the rules at the time (FY13 and FY21).
  • However, doubts remain over the intent, as small finance companies with negligible net worth were used as conduits for loans, transactions that were not disclosed in annual reports.
  • Crucially, SEBI has since expanded the definition of RPTs to include indirect transactions intended to benefit a related party, meaning similar deals would now come under legal scrutiny.

Financial Flows and Liquidity

• RBI officials noted that while non-food bank credit growth moderated during FY25, total financial resources flowing to the commercial sector increased due to a rise in funding from non-bank sources.
• This increase was driven largely by equity issuances amidst buoyancy in the domestic equity market, credit by Non-Banking Financial Companies (NBFCs), and a rebound in short-term external credit.
• The sources discuss the ongoing challenge of the "liquidity trap" in India, where RBI rate cuts (100 basis points since February) have not translated into widespread private investment due to surplus capacity and low demand.
• The government is responding with a Keynesian fiscal stimulus, combining the large capex push (₹11 lakh crore) with the income tax and GST concessions to boost demand.

3. Manufacturing, Logistics, and Automotive

Indian businesses are focusing on global expansion, EV infrastructure, and overcoming persistent manufacturing shortcomings.

Tool and Die (T&D) Industry Gap

• The Tool and Die (T&D) industry is identified as the "backbone" of modern manufacturing but remains critically under-recognized in India's drive for self-reliance (atmanirbharta).
• T&D produces the jigs, dies, and fixtures essential for sectors like automobiles, defense, aerospace, and electronics.
• India currently imports about 30 per cent of its tooling demand, primarily high-precision complex tools, often from China. This dependence leads to delays and vulnerability, affecting critical projects, including those for defense manufacturers.
• Experts urge the government to declare T&D a strategic infrastructure sector and launch a time-bound National Tool & Die Mission to address capacity gaps and reduce import reliance.

Automotive and EV Expansion

• The automotive sector shows active development, particularly in exports and electric mobility.
• Made-in-India Lamborghini golf carts, produced via a joint venture between India’s Kinetic Green and Italy’s Tonino Lamborghini, are set to be exported to the US from January or February. Kinetic Green noted India's tariff advantage over China in the US market.
• Electric motorcycle maker Ultraviolette is strengthening its global presence and resilient supply chain, diversifying components across Korea, Japan, Taiwan, and India, while keeping India as its core demand center.
• Union Minister Sarbananda Sonowal flagged off India’s first fleet of 50 electric heavy trucks with swappable batteries at the Jawaharlal Nehru Port Authority (JNPA).
• TVS Motor Company acquired Italian automotive design firm Engines Engineering S.p.A. for €5.05 million to establish a Global Centre of Excellence (CoE) in Bologna, Italy. This move aims to enhance speed to market, technological leadership, and expand TVS’s premium and electric portfolio.
• Ashok Leyland signed a 20-year agreement with China’s third-largest battery maker, CALB Group Co, planning to invest over ₹5,000 crore in seven to ten years to manufacture next-generation batteries, starting with importing cells and learning the assembly process.

Logistics Cost Reduction

• India’s logistics cost is estimated at 7.97 per cent of GDP in 2023-24 (and 9.09% of non-services output), according to a DPIIT report.
• This figure contrasts with commonly cited external estimates of 13-14 per cent of GDP, suggesting the growth pace of logistics costs is gradually slowing down due to government initiatives like PM Gati Shakti and infrastructure projects.
• The report identified rail logistics as the most cost-efficient mode (₹1.96 per tonne per km, excluding first/last mile), significantly lower than road transport (₹11.03).

4. Other Key Corporate and Policy Developments

• Balmer Lawrie & Co is planning a gradual exit from its refinery and oilfield services business because it is deemed "not viable" due to market pressure and competition from MSMEs.
• JLR Cyberattack British luxury carmaker Jaguar Land Rover (JLR) reported that sections of its digital estate are operational following a cyberattack. While JLR’s India operations remained largely unaffected, the attack threatened thousands of jobs and bankruptcy for smaller companies in the UK supply chain.
• Startup Funding Gurgaon-based fresh-commerce start-up Handpickd secured $15 million in Series A funding. Electric vehicle two-wheeler start-up Simple Energy secured $10 million in bridge funding.
• Trade Tensions and US Tariffs US tariffs imposed on Indian goods (25 per cent reciprocal tariffs imposed on August 7 and August 27) are likely to remain until the "thorny issue" of New Delhi's oil purchase from Russia is settled. India may attempt to appease the US regime by buying more oil from the US.
• Outward Remittances Decline Outward remittances under the RBI’s Liberalised Remittance Scheme (LRS) for all purposes declined by 10.9 per cent year-on-year in July 2025. Remittances specifically for studies abroad fell by 15 per cent in July 2025, and 48 per cent in the April-July 2025 period. This decline is attributed to students increasingly choosing locations other than the US, which are less expensive than an American education.

Defence and Strategic Sectors - Newspaper Summary

 The sources indicate that India's Defence and Strategic Sectors are experiencing a major push toward indigenization, capacity expansion, and modernization, strongly supported by significant government spending and the "Atmanirbharta" (self-reliance) policy. This strategic thrust is intertwined with the broader national economic landscape, specifically impacting capital formation, technology acquisition, and industrial infrastructure development.

1. Defence Sector Modernization and Indigenous Production

The Defence Ministry has finalized major procurement deals focused on boosting domestic manufacturing and replacing aging fleets, highlighting a commitment to developing a robust indigenous defense ecosystem.

Key Procurement Deals

• Tejas MK-1A Light Combat Aircraft (LCA) The Defence Ministry sealed a massive ₹62,370 crore deal with Hindustan Aeronautics Ltd (HAL) to procure 97 Tejas MK-1A Light Combat Aircraft for the Indian Air Force (IAF).
  • This procurement package includes 68 fighters and 29 twin seaters, along with associated equipment.
  • The deal, which was green-lighted by the Cabinet Committee on Security (CCS), is the ** second such contract** awarded to the state-run aerospace behemoth HAL, following a ₹48,000 crore deal for 83 Tejas MK-1A jets in February 2021.
  • The delivery of the LCA is scheduled to commence in 2027-28 and be completed over six years.
  • The Tejas MK-1A is replacing the IAF’s retiring MiG-21 fighters. The phasing out of the MiG-21, India's first supersonic fighter, is symbolized by the indigenous LCA Tejas flying alongside it in a final flypast, marking India’s transition to its next generation of fighters.
• Boosting Indigenization The new LCA contract mandates an indigenous content of over 64 per cent. It involves the integration of advanced, indigenously-developed systems like the Uttam Active Electronically Scanned Array (AESA) radar and the Swayam Raksha Kavach.
  • The project is expected to generate close to 11,750 direct and indirect jobs per year for six years, providing a major boost to the domestic aerospace ecosystem.
  • The procurement falls under the ‘Buy (India-IDDM)’ category of the Defence Acquisition Procedure 2020, aligning with the government's focus on indigenization.

Private Sector and Strategic Partnerships

The role of the private sector in advancing indigenous defense manufacturing is gaining prominence.

• Fighter Jet Development The growing interest of private companies, such as the Larsen & Toubro-BEL consortium and others, in manufacturing fifth-generation fighter jets and the Advanced Medium Combat Aircraft (AMCA), marks a positive shift in India’s defense ecosystem.
• This competition enhances indigenous production, reduces reliance on imports, drives technological advancement, strengthens the supply chain, and fosters self-reliance, positioning India as a credible global player in cutting-edge defense manufacturing.
• Arms Manufacturing in Uttar Pradesh The Prime Minister noted that the defence corridor in Uttar Pradesh is transforming the state into an industrial hub. Production of the AK-203 rifle with Russia is set to begin in Uttar Pradesh, and the defence corridor will boost arms manufacturing, underscoring the shift toward procuring domestically made equipment for the armed forces.

2. Strategic Infrastructure and Industrial Backbone

Achieving self-reliance (Atmanirbharta) in strategic sectors hinges on mastering core manufacturing capabilities, particularly the Tool and Die (T&D) industry, which is considered the "backbone" of manufacturing.

The Critical Role of Tool and Die (T&D)

• The T&D industry creates the jigs, dies, and fixtures necessary to produce every manufactured product, including automobiles, defense, aerospace, electronics, and mobile phones.
• The Tool and Die industry is central to India's ambition to become a global atmanirbhar manufacturing powerhouse. The absence of strong indigenous T&D capability results in dependence, delays, and vulnerability for strategic sectors like defense and aerospace. One account mentions a critical delivery for a defense manufacturer being delayed because a T&D vendor’s heat-treatment facility broke down.
• India currently imports about 30 per cent of its tooling demand, primarily high-precision complex tools, often sourced from China.
• The source explicitly calls for the sector to be recognized as strategic infrastructure and proposes a time-bound National Tool & Die Mission to ensure policy alignment, resource prioritization, and capacity-building.

3. Energy Security and Hydrocarbon Exploration

India is pursuing strategic projects to enhance its energy security and reduce reliance on imports, particularly concerning oil and gas exploration.

Deep Water Exploration Challenges

• A critical project involving ONGC, Oil India (OIL), and BP (the technical services provider) to drill four stratigraphic wells offshore along India’s coast is facing cost overruns even before commencement.
• The project, designed to explore oil and gas reserves at depths of 6,000 meters or more, was initially budgeted at ₹3,200 crore (approximately ₹800 crore per well), but the cost has now risen to roughly ₹1,200 crore per well.
• This exploration is vital to India’s recently announced National Deep Water Exploration Mission (NDWEM), aimed at tapping hydrocarbon reserves to reduce import reliance.
• The Andaman & Nicobar (A&N) offshore basin is being projected as the next big hydrocarbon discovery area due to its favorable geological formations and proximity to proven petroleum systems in Myanmar and North Sumatra.

Energy Trade and Geopolitical Tensions

The strategic sector is heavily influenced by geopolitical factors, specifically India's oil trade with Russia, which is impacting its bilateral trade relations with the US.

• Russian Oil Purchase India’s increasing purchase of Russian crude oil—from less than 1 per cent before the 2022 Ukraine war to over 35 per cent now due to discounts offered—is labeled as a "thorny issue" by the US.
• US Tariffs A source tracking the matter indicated that US tariffs on Indian goods are likely to remain until the issue of New Delhi's oil purchase from Russia is settled, as stopping the flow of finances to Moscow is a top priority for Washington.
• The US imposed 25 per cent reciprocal tariffs on August 7 and another 25 per cent on August 27 as a penalty for the Russian oil purchases.
• To potentially appease the US, New Delhi may attempt to increase its energy trade by buying more oil from the US.

4. Shipbuilding and Maritime Infrastructure

The government has launched a significant financial package to bolster the shipbuilding sector, aiming for global competitiveness and Atmanirbhar shipping.

• Financial Package The Centre announced a ₹69,725 crore finance package for the shipbuilding sector.
  • This includes a ₹20,000 crore maritime development fund and a shipbuilding development scheme with a ₹19,989 crore outlay.
• Boosting Competitiveness The package is intended to boost the capacity and competitiveness of Indian companies. Indian firms currently face a significant disadvantage against competitors like China, which reportedly has a 24 per cent cost advantage due to subsidized steel and lower interest rates.
• Global Ambition The government stated that these decisions are a significant step toward Atmanirbhar shipping and aim for India to become one of the top 5 shipbuilding nations by 2047.
• Current Standing Currently, the Indian shipbuilding industry accounts for less than 1 per cent of the global shipping market, sharply contrasting with China's 61 per cent market share in the order book of major commercial shipping sectors.

Indian IT Sector - Newspaper Summary

 The sources provide a detailed snapshot of the IT sector and AI trends in India as of September 2025, portraying an industry undergoing significant structural shifts driven by macroeconomic pressures, geopolitical factors (like US visa policies), and substantial momentum in Artificial Intelligence adoption, all set against a backdrop of resilient domestic economic growth.

IT Sector Performance and Global Headwinds

The IT industry's current health and future trajectory are signaled by the results of global consultancies, which serve as a bellwether for Indian IT.

Financial Indicators and Growth Outlook

Accenture reported quarterly revenues of $17.6 billion for Q4 2025 (up 7% in US dollars) and full-year 2025 revenues of $69.7 billion (a 7% increase). These results signal continued enterprise spending on cloud, AI, and consulting services.

However, this outlook is tempered by caution regarding near-term momentum due to several factors:

• Macroeconomic Pressures The global IT spending environment reflects a broader slowdown. High interest rates and cautious corporate budgets are affecting clients in North America and Europe, leading many to delay large-scale technology overhauls.
• Indian IT Outlook Analysts project that major Tier 1 Indian IT companies (TCS, Infosys, and HCL Tech) will see growth between 3–6 per cent in FY26, while mid-tier firms might achieve higher growth of 8–10 per cent due to niche AI expertise.
• Core Fundamentals One analyst noted that while Accenture’s IT service revenues appear stable, its core fundamentals are down, reflecting the broader slowdown in global IT spending.

The AI Momentum and Transformation

Artificial Intelligence (AI) is highlighted as a primary driver of enterprise spending and digital transformation, indicating a critical shift from experimental to scaled deployment.

Investment and Enterprise Adoption

Accenture reported significant investment in Generative AI (GenAI), with bookings reaching $1.8 billion for the quarter and $5.9 billion for the full year 2025. This robust demand for AI and strategic consulting is expected to drive Accenture’s projected FY26 revenue growth of 2% to 5% in local currency (or 3% to 6% excluding the US federal business impact). The rise in AI underscores the shift from mere experimentation to scaling AI responsibly. Indian IT firms are expected to continue leveraging AI and managed services to drive growth, embedding AI and cloud services to create sustainable revenue streams.

Societal and Cognitive Impact of AI

The sources also explore the potential negative consequences of AI adoption, which some researchers call "brain rot".

• Cognitive Cost Emerging research suggests that over-reliance on AI leads to a loss of the ability to think deeply, focus, and solve problems independently. Neural measurements showed that participants using AI writing assistants had a more than fivefold reduction in brain engagement linked to critical thinking compared to those writing unaided (0.009 versus 0.053).
• Productivity Paradox While AI promises increased speed and efficiency (already delivering 20–40 per cent efficiency gains in areas like document processing and supply chains), the technology can lead to attention fragmentation and dependency loops.
• Job Market Evolution Professionals are experiencing anxiety about job security due to AI replacement, which ironically can reduce their own productivity. However, AI is also a job creator, with 40 million new jobs estimated by 2030, spawning new roles like prompt engineers, data annotators, and digital ethicists. Upskilling is presented as the key safeguard against obsolescence.
• AI Training and Implementation Locally, ServiceNow launched ServiceNow University in Hyderabad to address AI skills gaps through free, on-demand courses. India is also seeing advanced AI applications in public services; for example, the Tirumala Tirupati Devasthanams (TTD) set up India’s first AI-powered Integrated Command & Control Centre (ICCC) for managing pilgrim traffic and safety using real-time wait times and density maps.

Adapting to Geopolitical Challenges and H-1B Visa Restrictions

A major factor shaping the Indian IT sector is the tightening of US visa policies, specifically the proposed $100,000 fee increase for H-1B visa applications.

Market and Operational Impact

• Market Reaction Concerns over the US H-1B visa fee hike and associated visa curbs led to persistent foreign institutional investor (FPI) selling in Indian markets. The Nifty IT index bore the brunt of this, plunging more than 6 per cent in one week.
• Delivery Model Shift Indian IT firms are proactively restructuring their delivery models by expanding nearshore hubs in regions like Latin America and Canada. These locations offer advantages such as overlapping time zones, cultural affinity, and competitive costs.
• Nearshore Expansion The long-term share of nearshore delivery is expected to rise from 5 per cent to 10–15 per cent, signifying a structural shift in how Indian IT serves global clients. For example, LTIMindtree is scaling up its nearshore centers, noting the time zone and cost advantages of Mexico.
• India's Scale Advantage Despite the strategic shift towards nearshoring, experts note a significant constraint: countries like Poland (a key nearshore hub for Europe) have a tech talent pool comparable only to that of a single Indian metro city like Chennai, meaning these regions cannot match the scale that India offers.
• GCCs in India While offshore work remains dominant (nearly 80% for top firms), India's role as a major hub for Global Capability Centers (GCCs)—a $64 billion market—is reinforced. Citigroup recently moved almost 1,000 tech jobs to India's business support centers following staff cuts in China, suggesting that global banks may increase reliance on Indian support centers due to the H-1B fee imposition.

Context in India’s Broader Economic Landscape

The trends in IT and AI are occurring within a vibrant yet volatile Indian economy:

• Economic Resilience and Consumption India's GDP grew 7.8 per cent in the April–June quarter, demonstrating continued economic resilience despite global uncertainty. This strength is supported by reliance on domestic demand and proactive policies.
  • The recent "GST 2.0" reforms are viewed as a game-changer, fostering a structural change in the economy intended to drive up domestic consumption and GDP growth.
  • The tax cuts lowered the simple average GST rate on essential consumption items from 11% to 9%. This boosted consumer confidence, leading to a surge in e-commerce sales (GMV up 23–25% year-on-year in the first two days of festival sales) and premium product purchases.
• Policy Intervention and Liquidity India appears to be navigating a "liquidity trap" where RBI rate cuts (100 basis points since February) have not led to commensurate private investment due to surplus capacity and low demand. The government is utilizing Keynesian fiscal stimulus through a large capex push (₹11 lakh crore) and income tax/GST concessions (saving households an estimated ₹48,000 crore) to boost demand.
• Domestic Technology Push (Swadeshi) The concept of Atmanirbharta (self-reliance) is a key governmental theme.
  • Government ministers are vocalizing support for home-grown software platforms like Zoho, urging an increase in "Swadeshi" technology adoption, with Zoho positioning itself to compete with global tech giants by doubling down on R&D, cloud infrastructure, AI, and proprietary tech to ensure privacy and security.
  • Similarly, London-based smartphone maker Nothing has made India the base for operations, R&D, and manufacturing for its CMF subsidiary, committing to invest over $100 million in the joint venture.
• Trade Challenges The ongoing trade dispute with the US, driven by India's oil purchases from Russia, remains a "thorny issue". US tariffs on Indian goods are expected to remain until this issue is settled, influencing the broader business environment.