Newspaper Summary - 161225

 The sources reveal a comprehensive picture of India's Technology and AI Transformation in December 2025, characterized by massive infrastructure investment, a significant shift in the tech job market, evolving regulatory frameworks for the digital economy, and strategic national drives toward indigenization and energy stability.

I. Infrastructure, Investment, and the Foundation for AI Ambitions

India’s aspiration to leverage AI is driving substantial investment into foundational infrastructure, particularly data centers, despite underlying resource constraints:

• Massive Investment: Up to $70 billion has been pledged to develop 6 gigawatts (GW) of data center capacity in India, a scale intended to power the country's AI ambitions. Overall investment in this sector is estimated to hit $100 billion by 2027, up from $60 billion between 2019 and 2024.
• Policy Support and Energy Landscape: Policy is actively supporting this growth by seeking to treat the data center sector as national infrastructure and drafting policies that mandate sourcing energy from solar grids and small modular reactors. Commerce and Industry Minister Piyush Goyal emphasized that India is a preferred destination for data centers due to its sufficient power capacity and a 500GW national grid, one of the largest globally.
• Resource Scarcity Challenge: Experts warn that the sector's growth may be hampered by limited freshwater supplies and the intense need for uninterrupted energy. Data centers rely on massive amounts of water for cooling, a practice that is more efficient and cheaper than specialized solutions but raises concerns because the water cannot be reused as freshwater for human consumption.
• Economic Spillover: The data center boom is creating a windfall for adjacent sectors, such as infrastructure development and cooling solutions. For instance, companies like Voltas anticipate that data centers will soon account for up to 30% of their B2B business, up from less than 5% currently. Global hyperscalers (like Google, Amazon, Microsoft) are committing multi-billion dollar investments for cloud and AI compute hubs, significantly boosting demand for Grade A office space, large land parcels, and specialized infrastructure in cities like Hyderabad.

II. AI-Driven Transformation of the Tech Employment Landscape

The technology job market is undergoing a "techtonic shift," moving away from the traditional outsourced model toward specialized, in-house capabilities:

• GCCs as the Primary Job Engine: Global Capability Centers (GCCs) are now the primary driver of tech job creation, hiring talent at more than four times the pace of traditional IT services firms. GCCs are expanding headcount by 18-27% year-on-year, contrasting sharply with the 4-6% growth in IT services.
• Focus on High-Skill/AI Roles: GCC demand is heavily concentrated in high-value domains such as AI, cloud, cybersecurity, and product engineering. Global companies are internalizing work that requires speed, security, and IP ownership, resulting in high-skill, multi-disciplinary teams within GCCs.
• Challenge to Traditional IT: The acceleration of AI has fundamentally changed the environment for Indian IT companies, with some experts calling the long-standing labor arbitrage advantage a "death knell". While traditional large IT firms are seeing muted growth, mid-sized IT companies are achieving faster market share gains by leveraging generative AI and agentic AI and specializing in the mid-market segment.
• New Roles and Skills: The rise of AI agents is creating demand for new occupations that require uniquely human skills, such as AI risk-and-governance specialists to set rules and prevent bots from leaking data or crashing operations. Other new roles include "front-end deployment engineers" (FDEs) who customize AI tools on-site, and skilled experts (in finance, law, medicine) needed for advanced data annotation to train models.

III. Regulatory Evolution and Digital Economy Maturation

The policy landscape is responding to digital risks and new economic realities, particularly concerning data governance and foreign investment:

• Digital Governance and Data Privacy: The National Company Law Appellate Tribunal (NCLAT) delivered a significant ruling by clarifying that WhatsApp must obtain explicit user consent for all data sharing with Meta companies, including non-advertising uses. This decision effectively removes the coercive "take-it-or-leave-it" structure of the 2021 privacy policy.
• Financial Regulation (Fintech 2.0): The digital lending sector is shifting from a focus on blitz-scale expansion toward depth, discipline, and stronger liability management (Fintech 2.0). Regulatory scrutiny has emphasized the need for licensing, KYC, and specializing in niche customer demands (e.g., healthcare loans). Furthermore, SEBI is cracking down on "finfluencers" acting as unregistered advisors, highlighting that retail participation, especially among young, financially vulnerable investors, is at risk from hype and inadequate disclosures.
• "Reverse Flipping" Trend: Several Indian startups and major e-commerce players like Flipkart are moving their corporate domicile back to India (reverse flipping). This move, exemplified by Flipkart receiving NCLT approval for re-domiciling, is a prerequisite for a local IPO and reflects the perceived stability of India's regulatory environment and the depth of its public markets.

IV. Strategic Indigenization in Technology and Manufacturing

India is pursuing technological self-reliance (Aatmanirbharta) in key strategic and emerging sectors:

• Semiconductors: The Ministry of Electronics and Information Technology (MeitY) is working on a major revamp of Harmonized System of Nomenclature (HSN) codes for semiconductor materials and equipment imports. This aims to clarify tariff structures, reduce customs delays, and lower costs for upcoming chip manufacturing projects.
• Electric Vehicles (EVs): Maruti Suzuki is strategically entering the EV market using an "old playbook," prioritizing the creation of infrastructure (2,000 charging stations with a target of 1 lakh by 2030) and training service providers (150,000 technicians) before the commercial launch of its eVitara. The company is also planning to localize battery production and critical components over the next few years.
• Defense Technology: Policy proposals suggest shifting the defense acquisition regime to a phased increase in Indigenous Content (IC) requirements instead of an upfront barrier, alongside creating a single-vendor route for urgent, specialized low-cost purchases of domestic technology.

In summation, India's technology transformation in late 2025 is defined by a paradox: robust domestic economic fundamentals (high GDP growth) coinciding with external pressures (rupee depreciation, capital outflows). This context creates a mandate for strategic technological development, emphasizing the build-out of crucial AI infrastructure and domestic capacity (like data centers and semiconductor supply chain improvements) while navigating a highly disruptive shift in the labor and services sectors toward higher-value, AI-focused capabilities. The focus is shifting from merely consuming foreign technology to becoming a hub for production and high-end services, making strategic regulatory changes necessary to support this evolution.

The sources provide a detailed snapshot of India’s macroeconomic situation and policy direction in December 2025, highlighting a resilient domestic economy that is attempting major structural reforms, even while navigating persistent external vulnerabilities and global trade shifts.

I. Macroeconomic Health: Growth, Inflation, and External Vulnerabilities

India's economy exhibits a paradoxical profile: strong domestic growth alongside currency weakness and external capital flight.

Domestic Strength and Consumption Rebound:

• High GDP Growth: India remains the world's fastest-growing major economy since FY22, recording 8.2% GDP growth in the July-September quarter.
• Ultra-Low Inflation: Retail inflation (CPI) was remarkably low, hitting 0.25% in October and 0.71% in November. Wholesale price index (WPI) inflation was in deflationary territory for the second straight month at -0.32% in November. This was driven by a sharp drop in food prices, lower fuel costs due to softer global energy prices, and muted price pressures in manufactured products.
• Consumption Boost (GST Cuts): Cuts in the Goods and Services Tax (GST) rates on nearly 400 items, implemented from September 22, led to sharp and rapid price declines, particularly for motor cars, jeeps (6.8% decline), and consumer durable goods. These cuts helped boost consumption, seen in early indicators like a rise in passenger vehicle sales in October and November, though the persistence of this demand is currently unclear.
• Demand Concerns: Despite low headline inflation, economists are concerned about persistently low core inflation (excluding food, fuel, gold, and silver), currently around 2.6%. This signals a weak demand impulse in the economy, which, if persistent, could reduce confidence in profits and growth and negatively impact government finances based on nominal GDP estimates.

External Vulnerabilities and Financial Stress:

• Weak Rupee and Capital Outflows: The Indian rupee is currently Asia's worst-performing currency. It crashed to an all-time low of 90.78 against the US dollar. This depreciation is attributed to persistent foreign fund outflows (FIIs pulled out $17 billion in 2024-25 and over $10 billion in the current calendar year) and high dollar demand from importers.
• FDI Evaporation: Net Foreign Direct Investment (FDI) fell sharply from $40 billion in 2020-21 to about $350 million last year. This reversal is driven by Indian corporates pursuing global footprints and foreign investors cashing out, facing structural headwinds from global industrial policy realignments (e.g., US and EU subsidies drawing capital to advanced economies).
• Trade Balance Improvement: Despite overall weak external conditions, the merchandise trade deficit narrowed sharply to $24.53 billion in November, its lowest level in five months, driven by strong export growth (up 19.38% year-on-year, the highest November in a decade) and a fall in imports. Exports surged, despite US tariffs, by diverting shipments to markets like China, Hong Kong, and Vietnam.
• Monetary Policy Conflict: The Reserve Bank of India (RBI) delivered a 25-basis-point (bps) rate cut earlier in December, bringing the repo rate to 5.25%. However, there is a disconnect between policy signals and bond market pricing. Benchmark government bond yields hardened after the cut, leading public sector borrowers like IRFC, PFC, and Sidbi to withdraw bond issues, as investor bids came in higher than anticipated. Economists expect the RBI to pause rate cuts in February due to the risk of rising inflation and the need to maintain an interest rate differential with the US to attract capital inflows.

II. Major Policy and Regulatory Initiatives

The government is engaged in sweeping policy reforms, focusing on infrastructure, self-reliance (Aatmanirbharta), rural employment, and regulatory clean-up.

A. Strategic Economic Overhaul and Indigenization:

• Nuclear Power Liberalization (SHANTI Bill, 2025): The government introduced the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, to open up nuclear power generation to private players. This legislation aims to boost investment to achieve an ambitious target of 100 GW of nuclear power capacity by 2047 and removes the contentious supplier liability clause (Section 46 of the CLND Act), which had deterred global suppliers.
• Defense Acquisition Reform: A high-level panel proposed significant changes to the Defense Acquisition Procedure (DAP 2025). Key proposals include shifting from an upfront requirement for Indigenous Content (IC) to a phased increase in IC over several years. It also suggests a single-vendor route for urgent, specialized low-cost purchases (up to ₹100 crore) of domestic technology to cut delays and boost Indian innovation.
• General Systemic Reforms (Micro-Governance): The Finance Minister stressed the need for collective work to reduce public debt at both the Centre and states, urging high-debt states like Punjab and West Bengal to maintain fiscal discipline. Simultaneously, the Centre is executing a "360° bottom-up system overhaul" (micro-reforms) to reduce regulatory burden, such as withdrawing Quality Control Orders (QCOs) that choked supply chains and easing certain environmental norms for factories.

B. Rural and Social Policy:

• Revamped Rural Employment (VB-G RAM G Bill, 2025): The government plans to replace the two-decade-old MGNREGA with the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025. The bill increases the work guarantee from 100 days to 125 days per rural household. Crucially, it shifts the funding model from a central sector scheme to a centrally sponsored scheme with a 60:40 cost-sharing ratio between the Centre and states (90:10 for Himalayan/Northeastern states). This shift has drawn sharp criticism from the opposition and concerns from allies like the TDP over the increased financial burden on cash-strapped states. The bill also proposes pausing employment during peak farming seasons (up to 60 days) to ensure labor availability.

C. Financial and Digital Regulation:

• Fintech Discipline (Fintech 2.0): The digital lending sector is moving away from rapid expansion toward depth, discipline, and stronger liability management (Fintech 2.0). Regulatory scrutiny, prompted by the rapid growth of lending companies, now emphasizes licensing, KYC, and moving away from technical "workarounds" of norms, leading to specialization in niche demands like healthcare loans.
• Crackdown on "Finfluencers": SEBI is cracking down on unregistered advisors ("finfluencers") who blur the line between content and actionable financial advice. The concern is the exposure of financially vulnerable retail investors, especially youth, to high-risk activities like equity F&O trading, where 93% of retail traders incurred net losses from FY22 to FY24.
• Data Governance: The National Company Law Appellate Tribunal (NCLAT) clarified that WhatsApp must obtain explicit user consent for all data sharing with Meta companies, removing the coercive "take-it-or-leave-it" structure of the 2021 privacy policy.
• Corporate Re-domiciling ("Reverse Flipping"): Large companies and startups like Flipkart are shifting their corporate domicile back to India, a move often required for a local IPO, reflecting confidence in the depth of India's public markets and simplifying compliance.

III. Global Trade and Geopolitics

India is actively negotiating trade deals while adapting to a globally fragmented economy marked by protectionism:

• US Trade Deal: India and the US are described as being "on the cusp" of finalizing a framework trade deal. The ongoing negotiations are complex due to high tariffs imposed by the US, but the resilience of Indian exports to the US (rising 22% in November despite a 50% tariff) suggests adaptation and expectation of a deal.
• EU FTA Difficulties: Negotiations with the European Union (EU) on a Free Trade Agreement (FTA) have entered the "most difficult" stage, with the prickling issue of the Carbon Border Adjustment Mechanism (CBAM) remaining on the table.
• WTO Dispute Mechanisms: India faces a strategic choice regarding the World Trade Organization (WTO) dispute settlement system (DSS). With the Appellate Body dysfunctional due to US blockades, the EU and allies have formed the Multi-Party Interim Arbitration (MPIA) system. India has not joined MPIA, fearing it may undermine demands to restore the Appellate Body, but experts argue joining would signal commitment to the rule-based order, especially as the US retreats from multilateralism.
• Geopolitical Alignment: The US National Security Strategy (NSS) is viewed with uneasiness by some Asian capitals, as its focus is seen as shifting from defending the liberal order to narrower Trump-era economic priorities like Big Tech profits and reshoring production. Separately, Prime Minister Modi's visit to Jordan focused on counterterrorism and extremism, underscoring diplomatic engagement in volatile regions.

The sources detail several significant and systemic policy and governance reforms enacted or proposed in India as of December 2025, reflecting a strategic shift toward modernizing infrastructure, enhancing financial discipline, promoting indigenization, and improving regulatory clarity across key sectors.

I. Strategic and Systemic Economic Reforms

The government is pursuing a "360° bottom-up system overhaul" characterized by strategic urgency and willingness to take on entrenched offices and practices to achieve a comprehensive shift.

A. Liberalizing the Nuclear Energy Sector (SHANTI Bill, 2025) A major reform involves opening up the traditionally closed nuclear power sector to private players via the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025.

• Private Participation: The bill allows any company or joint venture to construct, own, operate, or decommission a nuclear power plant or reactor, a function previously limited to government-owned companies.
• Liability Overhaul: Crucially, the bill aims to eliminate the contentious supplier liability clause (Section 46 of the Civil Liability for Nuclear Damage Act, 2010), which had deterred global suppliers. The new regime provides a pragmatic civil liability framework, including graded limits on liability for operators, simplifying provisions for suppliers by making their liability contract-driven. This move is expected to attract investment and align India’s norms with global standards.
• Goals: This legislation supports India's ambitious target of achieving 100 GW of nuclear power capacity by 2047 and views the sector through an energy prism, rather than solely a nuclear deterrence angle.

B. Revamping Rural Employment and Funding (VB–G RAM G Bill, 2025) The government is replacing the two-decade-old MGNREGA with the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB–G RAM G) Bill, 2025.

• Increased Work Guarantee: The bill increases the work guarantee from 100 days to 125 days per rural household.
• Shift in Funding Pattern: It shifts the scheme from a central sector scheme (fully centrally funded) to a centrally sponsored scheme, instituting a 60:40 cost-sharing ratio between the Centre and states (90:10 for Himalayan and Northeastern states). This shift, however, raises concerns among states, including the TDP-led Andhra Pradesh, about the increased financial burden.
• Strategic Focus: The new law refocuses rural employment on durable asset creation through four priority verticals: water security, core rural infrastructure, livelihood-related assets, and climate-resilient works. It also mandates pausing employment work for up to 60 days during peak agricultural seasons to ensure farm labor availability.

C. Defence Indigenization and Acquisition Procedures A high-level panel reviewing the Defense Acquisition Procedure (DAP 2020) proposed significant changes in DAP 2025 to accelerate self-reliance (Aatmanirbharta).

• Phased Indigenous Content (IC): Instead of an upfront IC requirement, the panel proposed a phased increase in IC over several years.
• Single-Vendor Route: It mooted a single-vendor mechanism for urgent, specialized low-cost purchases (up to ₹100 crore) of domestic technology to cut delays and boost Indian innovation.
• Counting Indigenous Content: It suggested that components of a larger main equipment that are developed in India but processed abroad and then re-imported as part of new acquisitions should still be counted as IC.

II. Financial, Regulatory, and Governance Clean-up

Policy efforts are simultaneously focused on tightening regulation, enhancing investor protection, and reducing bureaucratic friction.

A. Digital Governance and Data Privacy

• Mandatory User Consent: The National Company Law Appellate Tribunal (NCLAT) delivered a major ruling clarifying that WhatsApp must obtain explicit user consent for all data sharing with Meta companies, covering both advertising and non-advertising purposes. This decision effectively removes the coercive "take-it-or-leave-it" structure of the 2021 privacy policy.

B. Financial Market Discipline (Fintech 2.0)

• Digital Lending Shift: The fintech lending sector is entering "Fintech 2.0," shifting focus from "blitz-scale expansion" to depth, discipline, and stronger liability management. Regulatory scrutiny now emphasizes the need for licensing, KYC, and fairness.
• Finfluencer Crackdown: SEBI is tackling the issue of unregistered advisors ("finfluencers") who leverage social media hype. Measures needed include content-based regulation, shared legal liability for firms using influencers, mandated disclosures of holdings and losses, and clear risk warnings using hard data (e.g., stating that 93% of retail F&O traders incurred net losses from FY22 to FY24).
• Easing SIF Exam: SEBI and AMFI are considering making the Specialized Investment Fund (SIF) exam easier and more relevant, potentially by removing the currency derivatives section from the mandatory NISM XIII exam, as it is not currently relevant to the SIF products AMCs launch.
• Accountability in Banking: IndusInd Bank is preparing to issue show-cause notices to former top executives to claw back bonuses paid to them, based on internal findings that management was aware of accounting lapses which led to inflated profits. This action aligns with RBI guidelines on compensation and clawback mechanisms.

C. Easing Business and Investment Burdens (Micro-Reforms) The government is conducting micro-reforms aimed at reducing the regulatory burden on business.

• Quality Control Orders (QCOs): A host of QCOs that were reportedly choking supply chains and hurting small enterprises by raising the import bar for raw materials were withdrawn.
• Environmental Norms: Environmental norms have been eased, including reducing the mandatory green cover requirement for factories and placing more than 30 industries into the 'white category' (non-polluting), exempting them from mandatory green consent.
• Re-domiciling: The NCLT approved Flipkart's re-domiciling (shifting its corporate base) from Singapore back to India. This move, which follows a trend of "reverse flipping," is a structural prerequisite for a local IPO and reinforces confidence in India's regulatory framework. The only remaining hurdle is securing the necessary Press Note 3 security clearance due to a small stake held by China's Tencent.

III. Global Economic Policy and Trade Positioning

India is actively negotiating trade deals and asserting its interests in international trade organizations.

• Trade Deal Negotiations: India and the US are described as being "on the cusp" of finalizing a framework trade deal. However, negotiations with the European Union on a Free Trade Agreement (FTA) have entered the "most difficult" stage, primarily due to the contentious issue of the Carbon Border Adjustment Mechanism (CBAM).
• WTO Dispute System: India faces a strategic choice regarding the defunct World Trade Organization (WTO) Appellate Body (AB). Some experts argue that India, as a champion of the rule-based order, should join the Multi-Party Interim Arbitration (MPIA) system created by the EU and other members, rather than fearing it would undermine the demand to restore the AB, especially since the US retreat from multilateralism makes AB restoration unlikely.
• Tax Transparency (OECD Framework): India pushed for multilateral reporting of crypto assets and overseas real estate ownership and income during its G20 presidency. The OECD has since set out common reporting standards, which is viewed as a constructive move that boosts India's reputation for conservative regulation and helps plug tax leakage from affluent citizens.

The sources highlight several critical Corporate and Social Developments in India in late 2025, revealing a dynamic landscape defined by rapid consumer transformation, evolving wellness and cultural priorities, and intensified corporate governance and market scrutiny.

I. Corporate Governance and Financial Accountability

There is a noticeable shift towards stricter governance, accountability, and the clawback of executive compensation in cases of proved lapses.

• Clawback of Executive Bonuses: IndusInd Bank is preparing to issue show-cause notices to former top executives, including the former CEO, former Deputy MD, and former CFO, aiming to claw back bonuses previously paid to them,. This action is based on findings from multiple internal and external reports indicating that the top management was aware of accounting lapses in derivative trades (resulting in a loss of about ₹2,000 crore) and allegedly chose to benefit from inflated profits and lower provisions,. The move is aligned with the Reserve Bank of India’s (RBI) guidelines on compensation and clawback mechanisms intended to mitigate misconduct risk,.
• Accountability in Securities Markets: The Supreme Court (SC) upheld a Bombay High Court ruling that made depositories (CDSL and NSDL) accountable for wrongdoing by their depository participants, strengthening investor protection and potentially reopening claims in major broker defaults like Karvy.
• Corporate Re-domiciling: Walmart-owned Flipkart received key approval from the National Company Law Tribunal (NCLT) to shift its domicile back to India from Singapore,. This trend, known as "reverse flipping" and previously seen in companies like PhonePe and Meesho, is cited as a structural prerequisite for a potential local Initial Public Offering (IPO) and reflects confidence in India’s domestic public markets and regulatory environment,,. The move still requires Press Note 3 (PN3) security clearance due to a minority stake held by China's Tencent,,.

II. Shifts in Consumer Behavior and Market Segmentation

Consumer patterns are diversifying, driven by digital access, rising aspirations, and policy-induced price drops.

• Consumption Rebound and GST Impact: Cuts in Goods and Services Tax (GST) rates on nearly 400 items contributed to a record high of items seeing price easing (40% of the CPI basket in October 2025),,. This triggered a post-festive consumption rebound, particularly in passenger vehicle sales and consumer durable goods, although the durability of this demand surge remains uncertain,,.
• Rising Aspirations and Durable Goods Ownership: The Household Consumption Expenditure Survey (HCES) shows a structural transformation in spending, with food accounting for less than half of total household consumption even in rural India,. Spending on durable goods (vehicles, refrigerators, personal tech) has risen across all income groups, signaling expanding prosperity and improved market access,. This shift underscores durables as investments in productivity and capability (e.g., vehicles expanding job access).
• Boom in Niche Services and E-commerce in Tier-2/3 Cities:
  • The home services market is expanding rapidly, projected to reach $100 billion by FY30. Startups like Snabbit, offering on-demand domestic help, are capitalizing on this, signaling strong investor interest in this "new consumer category",.
  • E-commerce platforms are struggling but determined to crack the tier-2 and tier-3 town market, characterized by low Average Order Value (AOV) and costly logistics,. CityMall, which focuses heavily on groceries (AOV of ₹400-450), is pursuing a low-cost supply chain model, aiming to compensate for thin margins with volume and private labels,,. However, it faces significant challenges with fraud, delivery inconsistencies, and high customer expectations for service quality,,.

III. Social and Cultural Trends

Social developments reflect changes in public safety, entertainment consumption, and personal wellness philosophy.

• Public Safety and Enforcement: The Supreme Court flagged the construction of illegal eateries (dhabas) on expressways and national highways as a possible cause of accidents, calling for pan-India guidelines to prevent mishaps,,. Separately, the SC commented that effective orders on Delhi-NCR air pollution require people to modify their lifestyles in big cities,.
• Evolving Wellness and Longevity Market: A new wave of Indian wellness retreats is emerging, moving beyond superficial spa treatments to focus on "longevity-lite" protocols that integrate ancient traditions (Ayurveda, Sowa Rigpa) with modern science (biomarker testing, sleep tracking, hyperbaric oxygen therapy),,,. These retreats emphasize evidence-backed personalized care and continuous long-term aftercare via tech platforms after guests leave,,.
• The Rise of Women-Only Wellness Circles: These circles are emerging as "vital infrastructure" for modern women, addressing loneliness, emotional isolation, and the need for non-judgmental support,. They foster connections that transcend age and social divides, offering both emotional healing and practical support (e.g., networking for housing and careers),.
• Changing Film Consumption: Bumper opening days for Hindi films are fading, with the number of films grossing over ₹10 crore on opening day dropping in 2025 compared to the pre-pandemic era. Audiences are becoming more selective, placing greater trust in word-of-mouth content quality rather than relying solely on star power or pre-release hype,.

IV. Regulatory Scrutiny on Finance and Technology

Policy is reacting aggressively to unregulated digital activity and corporate behavior.

• Crackdown on "Finfluencers": SEBI is tightening rules on unregistered advisors ("finfluencers") who use courses and online channels to give actionable trading advice. The move addresses the heightened risk for financially vulnerable retail investors, especially youth, who take outsized risks; data shows 93% of retail F&O traders incurred net losses from FY22 to FY24. Policy suggestions include content-based regulation, shared legal liability for firms using influencers, and mandated disclosures of audited performance.
• Data Privacy Enforcement: The NCLAT clarified that WhatsApp must obtain explicit user consent for all data sharing (both advertising and non-advertising purposes) with Meta companies, effectively removing the coercive "take-it-or-leave-it" structure of the 2021 privacy policy,,.
• Shift in Digital Lending: The fintech lending space is maturing (Fintech 2.0), shifting from "blitz-scale expansion" to focusing on discipline, better liability management, and specialization (e.g., healthcare loans),. Regulatory demands emphasize licensing and strict KYC, discouraging technical "workarounds" of norms.