Business and Economy - Newspaper Summary

 The provided sources highlight a dynamic and complex landscape for Business and Economy in October 2025, characterized by robust corporate earnings, evolving government policies, increasing financial integration with global markets, and challenges in supply chains and the workforce.

Key economic and business topics covered across the sources include:

Corporate Performance and Financial Stability

Several major Indian companies reported strong financial results for the September quarter (Q2 FY26), often driven by volume growth, cost reduction, and strong domestic demand:

• Reliance Industries Ltd (RIL): RIL reported a consolidated net profit surge of 16% to ₹22,146 crore, supported by improved profitability across its three key engines: Oil-to-Chemicals (O2C), Digital Services (Jio), and Retail. The O2C business performed well due to sharp diesel cracks (the difference between crude oil and fuel price), benefiting the gross refining margin (GRM). Reliance Jio surpassed 500 million subscribers, and its ARPU (Average Revenue Per User) saw a marginal increase. Reliance also has plans to start operations at its first solar cell production line this month, with solar plants in Kutch beginning to generate power in H1 FY27.
• JSW Steel: The steelmaker saw a consolidated net profit jump of more than threefold (up 269.7%). This performance was fueled by higher volumes (sales rose 20%) and lower input costs (iron ore, coking coal, power) which compensated for softer metal prices. JSW Steel expects a strong second half (H2) for the fiscal year, anticipating an 8-9% growth in domestic steel demand and stabilizing prices.
• Eternal Ltd (Zomato/Blinkit): The company reported a mixed Q2 performance. While the food-delivery business saw a steady recovery in Net Order Value (NOV) growth (13.8%) and an improvement in the take rate (30.4%), its earnings stability is crucial, providing a cushion for losses in the quick-commerce arm, Blinkit. Eternal is aggressively expanding Blinkit's presence, raising the dark-store guidance to 3,000 by March 2027, with anticipated revenue of ₹50,000 crore by FY28.
• Dixon Technologies Ltd: The electronics manufacturer met its revenue goal, growing 33% year-on-year in Q2 FY26. The company is strategically diversifying into component manufacturing (e.g., camera modules, displays, power supplies) to enhance margins, expecting $1.5 billion in annual revenue from this expansion within two years.
• Banking Sector: India's largest private sector lenders, HDFC Bank and ICICI Bank, are expected to report steady loan growth for Q2. However, net interest margins (NIMs) are forecasted to remain under pressure due to faster loan repricing and rising deposit costs.
• Hindustan Zinc Ltd: Profit expanded 14% in Q2, aided by the ongoing silver rally and a weaker rupee, despite dips in metal production.

Policy and Infrastructure Development

The government is advancing major policy and infrastructure initiatives aimed at economic complementarity and expansion:

• Trade Policy: India is recalibrating its foreign trade strategy by opting against Free Trade Agreements (FTAs) with direct industrial rivals, instead seeking pacts with countries that complement its economic goals, such as Australia and the European Free Trade Association (EFTA).
• Highway Network Expansion: A sequel to the Golden Quadrilateral is planned, focusing on developing 20,000–25,000 km of high-speed expressways over the next 5–7 years to connect major economic centers and reduce high logistics costs. The estimated investment for the initial network (17,000 km by 2033) is about ₹11 trillion.
• E-Bus Payment Security: The PM E-bus Sewa Payment Security Mechanism (PSM), designed to build confidence in zero-emission bus manufacturers and operators, has received mandates from only 12 states and Union Territories (including Maharashtra and Jammu & Kashmir) out of 36. This mechanism ensures compensation to bus makers in case of payment default by State Transport Agencies (STAs).
• Service Sector Regulation: The Ministry of Statistics and Programme Implementation (MoSPI) is seeking feedback for the draft questionnaire of the first-ever Annual Survey of Incorporated Service Sector Enterprises (ASISSE), scheduled for launch in January.

Global Economic and Geopolitical Impact

International developments continue to pose both challenges and opportunities for the Indian and global economy:

• Supply Chain Disruptions (Chip Shortage): The auto industry is grappling with a potentially damaging supply-chain disruption related to a Dutch semiconductor manufacturer, Nexperia. The crisis stems from the Dutch government seizing control of Nexperia from its Chinese owner (Wingtech), leading to the Chinese government ordering Wingtech to suspend Nexperia’s exports from China. Nexperia manufactures high volumes of basic semiconductors crucial for vehicle systems, causing automakers worldwide to assess production risks.
• Financial Market Jitters: Global financial stocks experienced a downturn due to fears over credit quality in US regional banks, reviving memories of the confidence crisis from two years prior.
• AI Investment and Valuation: Oracle significantly raised its long-term revenue targets (to $185 billion by FY29) based on booming demand for AI computing services, driven partly by a massive contract with OpenAI. However, investors showed fatigue, raising concerns about the immense capital expenditure required to scale networks and the long-term profitability of serving these expensive AI workloads.
• Gold as a Hedge: Gold ETFs and Gold Funds are promoted as investment options offering liquidity, transparency, and serving as a potential hedge against inflation.

Workforce and Innovation Ecosystem

The sources touch upon evolving labor practices and the emergence of specialized innovation environments:

• Investment in Labor (Walmart Case Study): The major US retailer Walmart is being studied by Harvard Business School as a successful case of investing in its workforce. Walmart's strategy of increasing hourly wages and providing better benefits and career paths led to improved operations, higher employee retention (up 10% since 2015), and subsequent sales growth, demonstrating the return on investment in workers.
• Hacker Hostels: India's tech scene, particularly in Bengaluru, is seeing a rise in "hacker hostels" (e.g., The Residency, LocalHost). These co-living and co-working spaces support aspiring tech builders, often young individuals (as young as 14 or 16), in developing apps, robots, and startups, mirroring the dynamic culture of Silicon Valley. Grants and sponsorship remain a key challenge for sustaining this ecosystem.