Newspaper Summary - 151225

 The discussion of Artificial Intelligence (AI) and the Tech Sector, situated within the context of Global Economic, Regulatory, and and Corporate Trends in December 2025, reveals a landscape defined by transformative growth, intense competition, and notable market uncertainty.

AI Mania and Global Economic Context

AI stands out as a powerful, yet potentially volatile, driver in the global economy. There are pronounced eerie parallels between the current AI mania and the 2000 dot-com bubble.

• Valuation and Investment: Valuations for US shares tied to AI look the most expensive since the dot-com era. Anything AI-related—such as chip makers, power generators, and producers of data center equipment—is currently booming, contrasting sharply with struggles elsewhere in the market. Investment figures for building data centers are described as "even more extreme" than the huge corporate spending on fiber optics during the internet bubble, potentially reaching trillions of dollars. This massive infrastructure rush creates nervousness about a possible meltdown.
• Risk Concentration: The AI boom is heavily concentrated in mega-cap companies, which contributed nearly 80% of US equity gains in 2025. Concerns arise from the "circular" nature of some investments, such as Nvidia committing $100 billion to OpenAI, which then uses the funds to purchase Nvidia processing units. Analysts caution that if AI fails to deliver the expected productivity gains and profits, a painful aftermath resembling the dot-com bust is highly likely.

AI's Impact on the Tech Sector (Corporate Trends)

AI is fundamentally reshaping operational strategies and growth drivers across the tech sector, particularly in IT services:

• Growth Driver and Strategy: AI-led work is recognized as the fastest growth driver for companies like Capgemini in India. Capgemini's AI-first strategy focuses on business operations, R&D, sales/marketing, and IT development, noting that operations provide the biggest opportunities to leverage AI.
• Business Model Shifts: Leading Indian IT firms are overhauling their strategy; for instance, TCS made its biggest-ever acquisition ($700 million for Coastal Cloud) and partnered to build AI-ready data centers, prioritizing the acquisition of AI and data capabilities over traditional organic growth models.
• Adoption Challenges: Implementing Generative AI (GenAI) and AgenticAI successfully requires deep knowledge of complex business processes and workflows. Major adoption hurdles cited include a lack of trust in AI's accuracy and the poor readiness of enterprises regarding foundational master data governance, integration, and interoperability.
• AI in Finance: AI is expected to empower investment professionals by helping them analyze large datasets and break down market silos for a more holistic view. While AI will improve efficiency, some labor displacement is anticipated, primarily in back and middle offices, though new jobs are expected to emerge.
• New Revenue Streams: AI is even influencing fields like marketing, where AI avatars such as Radhika are being employed in the tourism sector to reduce costs and maintain control over messaging.

Global and Regulatory Trends in AI

AI is tightly interwoven with geopolitical and talent development trends:

• Global Positioning: India was ranked third globally on Stanford University’s AI Vibrancy Index for 2024, behind the US and China, driven by a growing AI talent pool. In terms of talent development, India achieved the global lead in GenAI learning, reporting 3.6 million enrollments in 2025.
• Geopolitics and Chips: The race for technological dominance is highly visible in the chip sector. China is actively rejecting US-made Nvidia H200 AI chips in favor of domestically developed semiconductors to enhance its "semiconductor independence". Furthermore, the soaring demand for High-Bandwidth Memory (HBM) needed for AI servers is causing a severe global shortage, compelling chipmakers to prioritize high-profit AI chips, which in turn restricts supply for legacy devices like televisions, leading to expected price increases.
• India's AI Strategy: Domestically, India needs significant low-cost computing power to realize its AI ambitions. There is a specific requirement for developing Indic language foundation models designed to serve local needs, such as guiding farmers on appropriate crop choices based on soil conditions.

Broader Tech Sector and Semiconductor Landscape

The tech sector outside pure AI development is characterized by consolidation and geopolitical maneuvering in supply chains:

• M&A and Consolidation: Corporate M&A remains a focus, demonstrated by ServiceNow's advanced discussions to acquire cybersecurity startup Armis for up to $7 billion. In the media industry, intense consolidation is visible through Netflix's massive bid for Warner Bros Discovery, which is expected to fundamentally reshape the balance between streaming platforms and cinemas. This shift is fueled by slowing subscriber growth and increased corporate pressure to acquire established content libraries.
• Semiconductor Supply Chain: To mitigate reliance on single sources, India and Japan are strengthening their cooperation through a strategic partnership focused on building resilient semiconductor supply chains, R&D, and talent development. Intel's CEO advises India to follow an incremental growth strategy in fabrication, prioritizing legacy node manufacturing for automotive and industrial applications that do not require the most advanced processes.
• Capital Market Trends: India experienced a buoyant IPO market in 2025. However, a significant corporate trend shows that IPOs are increasingly dominated by Offers-for-Sale (OFS), used primarily by promoters and private equity backers to exit, rather than raising fresh capital for business expansion. This trend fuels investor skepticism toward firms where promoters are pulling cash out when the company needs capital.

The intertwining of these factors positions AI not just as a technology, but as an economic force driving major investment decisions, geopolitical strategies, regulatory concerns, and corporate restructuring globally, all while mirroring the exuberance and risk concentration of past market bubbles.

The landscape of Indian Financial Markets in December 2025 is defined by strong domestic resilience, rigorous regulatory reform agendas by SEBI and RBI, and a decisive shift in investor behavior set against the backdrop of significant global capital uncertainty.

Global Capital Trends and Market Flows

The major macroeconomic trend affecting Indian financial markets is the record outflow of Foreign Portfolio Investor (FPI) equity capital, largely driven by global factors and domestic valuation concerns.

• FPIs are on course to report their highest-ever equity selling in any year, selling a net $18.4 billion (₹1.6 lakh crore) of Indian equities by December 12, 2025. This contrasts sharply with the previous peak of $16.5 billion sold in 2022.
• The cumulative five-year rolling data for FPI net investment has turned negative for the first time in a decade, indicating an overall outflow of $10.2 billion in the five years leading up to December 2025.
• This exodus is partially attributed to Indian market valuations being considered "much higher" (ranging from 30% to 300% higher) compared to comparable global economies like Korea or China.
• Domestic institutional and retail investors are providing a significant counter-balance, demonstrating remarkable strength. Domestic funds were net buyers every month in 2025, deploying ₹4.7 lakh crore into equities. This sustained domestic bid has made Indian markets more insulated from geopolitical crosswinds and creates a stable domestic bid.

SEBI’s Regulatory Agenda: Deepening Markets and Investor Protection

The Securities and Exchange Board of India (SEBI) is undertaking comprehensive reforms focused on deepening market trust, enhancing transparency, and protecting retail participants, particularly in the booming derivatives and mutual fund segments.

• Mutual Fund Reform: SEBI is reviewing the entire fee structure for the mutual fund industry, aiming for greater transparency and cost-efficiency. Proposed changes include reducing the Total Expense Ratio (TER) by 15-20 basis points, increasing investor readiness to make informed decisions by supporting clearer disclosures, and removing the 5 basis points additional allowance previously granted to fund houses. SEBI is also proposing to significantly lower brokerage fees for cash market transactions (from 12 basis points to 2 basis points) and derivative transactions (from 5 bps to 1 bp).
• Derivatives Market Scrutiny: Due to concerns over retail investor vulnerability (91% of individual derivatives traders lose money, with an average loss of ₹1.06 lakh in FY25), SEBI is working to make the Futures and Options (F&O) market safer.
  • Margin Rationalization: The regulator is likely to reduce margins on equity derivatives on non-expiry days, particularly the Extreme-Loss Margin (ELM), aiming for a reduction from 2% to 0.5-1% for hedged portfolios. This move aims to promote longer-term trading interest and reduce the current concentration of trading activity solely on expiry days.
  • Enforcement Actions: SEBI has taken high-profile enforcement actions, including barring Wall Street firm Jane Street for alleged benchmark manipulation and ordering it to disgorge ₹4,844 crore. Furthermore, SEBI cracked down on unregulated financial influencers (“finfluencers”), seizing over ₹601.37 crore from an academy whose clients collectively suffered losses.
• Primary Market Transparency: SEBI plans include simplifying Initial Public Offering (IPO) disclosures and easing pre-IPO lock-in rules, intending to improve information accessibility for retail investors. The current market trend shows that IPOs are frequently dominated by Offers-for-Sale (OFS), primarily serving as exit routes for promoters and private equity backers (OFS accounted for 63% of IPO proceeds in 2025).
• Debt Market Democratization: Regulatory efforts, such as reducing the minimum investment amount for corporate bonds from ₹10 lakh to ₹10,000, have triggered substantial growth (one platform reported 300% annual growth) and democratized the corporate bond market for retail investors.

RBI’s Role: Monetary Policy and Structural Banking Shifts

The Reserve Bank of India (RBI) is grappling with balancing monetary policy transmission, supporting corporate financing, and responding to new risks like cryptocurrencies.

• Monetary Policy and Bank Margins (NIMs): Following a recent RBI rate cut, major commercial banks (including SBI, Indian Overseas Bank, Bank of Baroda, and HDFC Bank) responded by cutting their Marginal Cost of Funds-based Lending Rate (MCLR) by five basis points. This action is expected to delay the recovery in banks’ Net Interest Margins (NIMs), as banks face limitations in cutting deposit rates due to stiff competition from alternative investment avenues like mutual funds.
• Corporate Financing Shifts: The banking sector faces a structural challenge as corporates increasingly finance themselves outside traditional bank loans, utilizing debt markets, global equity, and local equity. This trend is linked to the rise of deeper, cheaper credit alternatives in the market.
• M&A Financing Regulation: The RBI recently allowed domestic banks to finance mergers and acquisitions (M&A) for the first time. This policy reversal aims to capture a market previously dominated by foreign lenders. Domestic banks, led by SBI, are currently seeking a regulatory relaxation of the existing cap on M&A lending (currently 10% of Tier 1 capital) to compete effectively.
• Caution on Stablecoins: RBI Deputy Governor T. Rabi Sankar has singled out stablecoins, warning that this supposedly "stable" corner of the crypto world carries systemic risks. He stated that stablecoins are merely private money lacking sovereign guarantee, posing risks such as disruption to monetary policy transmission, increased price volatility, and potential draining of bank deposits. RBI continues to maintain that cryptocurrencies are taxable assets (at 30%) but not legal tender.

Corporate Governance and Regulatory Scrutiny in the Audit Space

In addition to financial market regulation, major Indian accounting regulatory bodies are addressing corporate accountability through audit standards.

• The Institute of Chartered Accountants of India (ICAI) is working to redefine audit accountability by submitting a proposal that establishes a clear division of responsibility between the principal auditor and auditors of group subsidiaries. This framework mandates written instructions and a focus on transparency, allowing the principal auditor to review subsidiary records if necessary. This move follows prior disagreement with the National Financial Reporting Authority (NFRA), which had pushed for concentrating liability solely on the principal auditor.
• Meanwhile, market-driven corporate concerns highlight the need for governance. Investor Madhusudan Kela warns against investing in companies where the promoter is selling stake (Offer for Sale) at a time when the company requires capital for expansion, viewing it as a major red flag.

Overall, the Indian financial ecosystem demonstrates structural robustness fueled by aggressive domestic participation and disciplined regulatory oversight, even as global capital flows retreat and domestic banks navigate a transition in corporate lending models.

India's economic and corporate activity in December 2025 is characterized by robust domestic resilience, a strong focus on strategic industrial scale-up, and a pronounced integration into a volatile global landscape defined by shifting capital flows and geopolitical maneuvering.

Indian Macroeconomic Resilience

India maintains a strong macroeconomic position despite global turbulence, although domestic demand remains a concern.

• Growth and Stability: India clocked 8.2% GDP growth in the September 2025 quarter, with full-year projections at 7.3% for FY26, making it one of the world’s fastest-growing major economies. The overall macroeconomic backdrop is judged to be fundamentally resilient, marked by contained inflation, a manageable current account deficit, and a stable fiscal position.
• Domestic Demand: The one acknowledged "soft spot" is domestic demand, which has moderated in recent quarters. However, industry leaders view this weakness as cyclical, not structural, expecting a bounce back spurred by government policy support (like GST measures) and RBI rate actions.
• Consumption Shift: Despite the moderation, a significant structural shift is underway in consumer markets. The head of Hindustan Unilever notes that "Dehaat badal raha hai" (the countryside is changing), with more women entering the workforce and rural wages starting to rise. This implies an expanding consumer base, even though the per capita consumption of consumer goods remains extremely low at around $54 compared to global standards, indicating huge headroom for future growth.

Capital Flows and Investment Trends (Global Context)

India is witnessing a dramatic divergence in capital market activity, driven directly by global economic and regulatory trends.

• FPI Exodus Driven by Valuation: Foreign Portfolio Investors (FPIs) are on course for their highest-ever equity selling, net selling $18.4 billion (₹1.6 lakh crore) in 2025. This massive outflow is attributed primarily to global dynamics, specifically India's elevated market valuations, which are sometimes 30% to 300% higher than comparable economies like Korea or China. FPIs are shifting capital away from Indian equities to developed markets due to higher US interest rates and tighter liquidity conditions.
• Domestic Counter-Balance: This foreign selling is largely absorbed by aggressive domestic buying. Domestic funds have deployed ₹4.7 lakh crore into equities in 2025, providing a stable counter-bid that makes the Indian market increasingly insulated from geopolitical crosswinds.
• IPO Market Trends: India experienced a record year for IPOs in 2025. However, a significant corporate trend shows that these offerings are predominantly driven by Offers-for-Sale (OFS), designed mainly for existing promoters and private equity backers to exit their investments, rather than raising fresh capital for business expansion. This structure sometimes draws caution from investors who warn against buying into companies where the promoter is pulling cash out when the business requires it.
• Alternative Financing: Large corporates are undergoing a structural shift by moving away from reliance on traditional bank loans, increasingly opting for debt markets (local bonds, global bonds) and equity markets (local equity, global equity) for financing. This push toward broader capital market financing aligns India with trends seen in developed economies where bond markets far outweigh the banking system for corporate funding.

Corporate Strategy, Manufacturing, and Geopolitical Integration

Indian companies are strategically investing for capacity, focusing heavily on technology and global expansion:

• Industrial Scale-up and Challenges: Industrial giants are pushing massive capacity expansion. ArcelorMittal Nippon Steel (AMNS India) targets growing its steelmaking capacity threefold to 25-26 million tonnes per annum by 2030, requiring investments of ₹55,000-60,000 crore. However, this expansion occurs in a "challenging" operating environment where low steel prices and elevated iron ore costs are squeezing margins.
• AI and IT Sector Pivot: AI-led work is identified as the fastest growth driver for IT service providers like Capgemini in India. In response to the global technology race, Tata Consultancy Services (TCS) has notably executed an acquisition (Coastal Cloud for $700 million) and entered partnerships to build AI-ready data centers, reflecting an urgent shift toward acquiring AI capabilities rather than relying solely on organic growth and internal reskilling.
• Global Expansion and Geopolitics: Indian conglomerates are seeking global leadership. Bharti Enterprises (Airtel) plans to expand internationally, aiming to become the world’s largest telecom company within a decade. The firm has already secured a 25% stake in British Telecom and believes India is favorably positioned geopolitically, noting that its digital connectivity might be "very easily accepted" where other large nations may not be.
• Energy Security Vulnerability: India's dependence on foreign sources remains a critical vulnerability, importing nearly 89% of its crude oil requirements. This reliance exposes the economy to severe risks stemming from global conflicts and supply route disruptions.
• Semiconductors and Global Supply Chain: The pursuit of domestic manufacturing is key, with India and Japan establishing a strategic partnership for resilient semiconductor supply chains through R&D and talent development. Domestically, there is a push to start with legacy node fabrication for automotive and industrial applications as an incremental growth strategy. Furthermore, global demand for AI servers is creating a severe shortage of high-bandwidth memory (HBM) chips, which is causing prices for commodity electronics like televisions to rise by 3-4% in India due to increased component costs and rupee depreciation.

The interaction of Geopolitical, Social, and Regulatory Issues in late 2025 demonstrates the volatility of the global environment and India’s determined efforts to modernize its governance structures while navigating complex domestic challenges.

Geopolitical Pressures and Global Conflict

Global dynamics are marked by heightened security risks, geopolitical competition, and proxy conflicts:

• Terrorism and Antisemitism: A deadly terrorist attack occurred at Sydney’s Bondi Beach targeting a Hanukkah celebration, resulting in 11 deaths and prompting the Australian Prime Minister to vow a tough crackdown on antisemitism. Following this, a high-level alert was issued in India regarding a possible terror attack on Jewish establishments in Delhi, Bengaluru, and Mumbai around the Hanukkah festival.
• Major Wars and Diplomacy: The sources illustrate ongoing tension between Russia and NATO, with Russia dismissing the NATO Secretary General’s comments on preparing for war as irresponsible. Ukrainian President Volodymyr Zelenskyy is engaging in complicated negotiations around the US-led peace plan, strategically seeking to revise terms that would bar Ukraine from NATO and require territorial withdrawal, showcasing a pragmatic approach to maintaining sovereignty amidst pressure.
• Trade and US Influence: US geopolitical influence is clearly impacting global trade, as seen when Mexican President Claudia Sheinbaum unveiled plans to raise tariffs, primarily driven by anxiety over a potential review of the US-Mexico-Canada Agreement (USMCA). This action was taken to protect local industry from Asian supply chains perceived as bypassing US tariff walls, underscoring how other nations must align their policies with US geopolitical and economic goals.
• Energy Vulnerability: India's heavy reliance on imported crude oil (nearly 89% of its requirements) exposes the nation to severe risks from global conflicts and disruptions in critical shipping routes like the Suez Canal and the Red Sea, highlighting a critical energy security vulnerability.

Regulatory and Governance Reforms

Indian governance bodies are pushing major reforms focusing on financial transparency, educational structure, and corporate accountability:

• Financial and Market Regulation: The Securities and Exchange Board of India (SEBI) is engaged in deep structural reform aimed at improving investor confidence and lowering costs. This includes reviewing the entire mutual fund fee structure to reduce the Total Expense Ratio (TER) and brokerage fees. Additionally, SEBI is considering reducing the Extreme-Loss Margin (ELM) for hedged derivative portfolios on non-expiry days to encourage longer-term trading, balancing market depth with risk control. Furthermore, the RBI has warned that cryptocurrencies like stablecoins, despite their name, carry systemic risks because they function as private money lacking sovereign guarantees, potentially disrupting monetary policy.
• Education Restructuring: A new legislative initiative, the Viksit Bharat Shiksha Adhishthan Bill, 2025, proposes replacing established bodies like the UGC and AICTE with a single, three-council commission. This centralization would mandate outcome-based accreditation and would extend regulatory oversight to institutions previously excluded, such as IITs and IIMs.
• Corporate Accountability: The Institute of Chartered Accountants of India (ICAI) is working to establish a framework for clear division of responsibility between a principal auditor and subsidiary auditors, aimed at enhancing accountability in the preparation of financial statements.
• Legal System Deficiencies: Despite having high-caliber lawyers and judges, the Indian legal sector suffers from the "ABCD" problem—representing access, backlog, cost, and delay—which is recognized as a major dampener for economic growth. Allowing foreign law firms to operate in India is viewed as a way to potentially increase efficiency in the legal ecosystem.

Social Shifts and Public Health Concerns

Societal and labor trends reflect the pressure points of a rapidly digitalizing and urbanizing economy:

• Workplace Rights and Culture: The introduction of a private member’s bill on the "Right to Disconnect" highlights a growing concern over the pervasive "always-on" corporate culture that is contributing to high rates of burnout. However, deep-seated imbalances in power dynamics and a "feudalistic mindset" among some Indian corporations suggest that legislation alone may not immediately resolve the systemic issues affecting employee well-being.
• Gender and Career Ambition: Women are increasingly choosing to "lean out" of the traditional corporate ladder, showing less interest in pursuing promotions, a reversal attributed to waning employer support and insufficient affordable childcare.
• Health and Food Safety: Severe air pollution remains a critical public health issue, necessitating the temporary suspension of construction, vehicle restrictions, and even the closing of outdoor sports due to the hazardous Air Quality Index (AQI) levels. Separately, concerns over the food supply chain prompted the FSSAI to launch a nationwide drive to test eggs for traces of banned, potentially carcinogenic antibiotics (nitrofuran metabolites) after a viral video raised consumer alarms.
• Aviation Security: Incidents of GPS spoofing and jamming affecting flights are rising significantly worldwide, including at major Indian airports (Delhi, Mumbai, Kolkata, etc.), forcing international groups like IATA to warn pilots to increase vigilance due to severe safety implications.
• The Rise of Finfluencers: The explosive growth in retail investment has been accompanied by a dangerous proliferation of unregulated financial influencers ("finfluencers") promoting high-risk speculative instruments. SEBI acted against one such academy that collected over ₹601.37 crore while its participants incurred net trading losses, underscoring the risk posed to novice retail investors.

Consumer trends and related sectoral shifts in late 2025 reflect deep structural changes in demographics, digital adoption, and global supply chains, all set against a backdrop of intense corporate consolidation and volatile investment cycles.

Fundamental Shifts in Consumer Behavior

Indian consumption patterns are undergoing twin structural changes: a geographical expansion and a critical financialization of household savings.

• Rural Consumption and Demographics: While overall domestic demand has moderated cyclically, there is immense long-term growth potential due to India’s extremely low per capita consumption of consumer goods (around $54). A significant societal shift is occurring as the countryside changes, characterized by more women entering the workforce (40% in rural India) and rising rural wages, which is expanding the overall consumer base.
• Generational Spending vs. Saving: The youngest generation (Gen Z, in their 20s) exhibits a high-risk, spend-first attitude. This generation prioritizes experiences (such as travel and hobbies) over possessions and frequently funds lifestyle upgrades and discretionary purchases through debt, including loans, EMIs, and Buy Now Pay Later (BNPL) schemes. Consequently, India's overall savings rate has dipped from 34% of GDP in 2010 to 28% now, despite a consumption boom.
• Shift from Ownership to Utility (Global Trend): Globally, especially in China, young consumers are increasingly prioritizing short-term utility and experience over outright ownership, fueling a large rental market for electronics, outdoor gear, and fashion.
• Financialization of Savings: A structural shift is underway as household savings migrate from traditional, physical assets (fixed deposits, physical gold, real estate) toward financial and digital assets (stocks, mutual funds, and alternative investment funds/AIFs). This behavior is seen as a key driver of India's robust domestic liquidity.

Automotive Sector: Aspiration Trumps Policy

The automotive sector is defined by a clear consumer preference trend that policy adjustments failed to reverse:

• The SUV Boom: Despite government GST cuts (from 28% to 18%) on cars under 4 meters intended to revitalize the small car segment, consumers overwhelmingly chose bigger, more aspirational compact SUVs. In October–November 2025, compact SUV sales grew 17% year-on-year, while mini car sales grew only 3%.
• Market Pressure: Carmakers like Maruti Suzuki warn that if policy fails to support the small car segment against stringent upcoming emission norms, they may have to discontinue models.
• Premium Segment Expansion: Luxury brands like BMW are expanding their MINI portfolio and sales networks into smaller cities and towns (including Jaipur, Lucknow, and Ranchi) as brand acceptance grows beyond metro areas. There is also a notable movement toward electric vehicles (EVs) due to their low running and maintenance costs.

Media and Entertainment: The Consolidation Effect

The global entertainment industry is experiencing a massive shift toward consolidation, driven by corporate pressure to rationalize content spending and gain market share:

• Streaming Wars and Corporate Strategy: Netflix's bid to acquire Warner Bros Discovery (WBD) for an enterprise value of $82.7 billion is a strategic move to consolidate market dominance, gain control of popular intellectual property (IP) like Harry Potter and Game of Thrones, and pivot from high organic content creation costs to acquiring proven libraries. This acquisition is part of a trend toward consolidation amid slowing subscriber growth and rising pressure for profitability.
• Impact on Theatrical Release: Cinema owners, including those in India, fear the vertical integration will lead Netflix to prioritize a streaming-first distribution model, potentially disrupting the supply of Hollywood films that constitute a substantial portion of the box office. This could force theaters to adapt by pivoting toward regional cinema or projecting major sports events.
• Regulatory Concern: Critics, such as the Writers Guild of America, warn that this consolidation reduces the number of buyers for scripts, potentially reducing creators’ bargaining power.

Technology and Infrastructure Sectoral Shifts

Global technological advancements and supply chain constraints are directly impacting consumer prices:

• AI and Consumer Electronics Pricing: The explosive global demand for High-Bandwidth Memory (HBM) chips needed for AI servers has created a severe memory chip shortage globally. Chipmakers are prioritizing these high-profit AI components, which tightens the supply of components for legacy devices like televisions.
• Inflationary Pressure: This supply constraint, coupled with the depreciation of the rupee (which crossed the 90-to-a-dollar mark), is expected to drive up the prices of LED televisions by 3–4% starting January 2026, offsetting some benefits provided by previous GST cuts on TV screens.
• Real Estate Investment: The commercial real estate segment is attracting significant investment, including from high-net-worth individuals like Bollywood celebrities. This shift is driven by the post-pandemic recovery of the office sector and the pursuit of higher rental yields (6–9%) and greater tax benefits (depreciation write-offs) compared to residential property investments.
• Financial Inclusion and Regulation: Regulatory changes, such as SEBI reducing the minimum investment amount for corporate bonds to ₹10,000, have profoundly impacted the investment landscape, democratizing the previously institutional-only corporate debt market and fueling rapid annual growth in retail participation.