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.