INDIAS ECONOMIC CHALLENGES
China is the world's factory but still can't give jobs to youth: Sridhar Vembu says India has a problem that is about to get worse
China's position as the world's manufacturing powerhouse has not prevented a growing employment challenge among its educated youth. Despite its massive industrial base, advanced technology capabilities and a merchandise trade surplus of nearly $1.2 trillion, around 70% of unemployed people in the 20-24 age group reportedly hold university degrees. Zoho founder Sridhar Vembu has highlighted this contradiction, warning that India could face a similar problem.
Overall, India Inc credit profile looks healthy: Ramnath Krishnan, Icra Group CEO
Corporate India's credit profile has maintained strength following a period of deleveraging post-Covid, although external pressures exist. While rating upgrades continue to outnumber downgrades, specific sectors like chemicals and airlines face challenges. The potential for a drop in credit ratios exists, dependent on geopolitical factors and inflation rates. Companies remain hesitant to invest heavily amid uncertain consumer demand, leading to muted private sector capex.
US midterm results may give India trade leverage, but tariff and AI risks remain
The US midterm results may give India some room in trade negotiations by increasing congressional scrutiny of executive action, but they do not remove tariff risks or alter Washington's strategic priorities. AI investment is also unlikely to retreat, with capital expected to remain within the US rather than shift significantly to emerging markets.
Samvat 2083 begins: Will the good times roll for Indian businesses?
Samvat 2083 begins with Indian businesses entering the new year on a note of cautious optimism. Strong GST collections, festive demand and the RBI’s upgraded FY27 growth forecast point to economic resilience. But weak hiring, easing manufacturing momentum, food inflation and crude oil risks cloud the outlook.
Coldplay, Post Malone and the concert economy: BookMyShow's Naman Pugalia on why India's live music boom is only getting bigger
Post Malone's concert in Guwahati attracted around 20,000 fans, which proved to be a monumental economic boost, generating an estimated ₹43 crore for the local area. Fans traveled from more than 200 cities, reflecting the event's significant impact on tourism. A report shows people increasingly favor experiences over possessions, underlining how concerts can create memorable moments and facilitate the discovery of new musical talents.
Fairness, churn, and India's rise: India has lifted millions out of poverty, but the next big challenge is helping people climb further
India's poverty rate has fallen sharply, with nearly 496 million people moving above the World Bank's lower-middle-income poverty line between 2011-12 and 2023-24. However, the next challenge is to expand economic mobility, improve wages and create opportunities. The article examines why growth, fair access and social mobility matter more than focusing on inequality alone.
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Wayanad: Channelling CSR funds to rebuild lives and future
In July 2024, Wayanad faced severe flash floods and landslides, leaving a trail of destruction that impacted homes and children's education. Recognizing this crisis, T Siddique launched Bhoomi, a noble initiative aimed at aiding students affected by the disaster. Athira, an aspiring aeronautical engineer, found hope through this program after losing her home.
Centre proposing parity in mineral taxation, states' rights to remain intact: Union Mines Secretary
Proposed amendments to the Mines and Minerals (Development and Regulation) Act are intended to create tax parity across states. This initiative aims to reduce reliance on imports by fostering local production and processing of critical minerals. The Indian government has introduced significant subsidies to support industries establishing lithium and nickel processing facilities. Approximately 58 entities are now registered under a recycling program for electronic waste.
SJVN holds talks with Nepal government to expedite 1,569-MW hydropower projects
SJVN Ltd chairman Bhupender Gupta met various Nepal government officials to expedite hydropower projects. The discussions focused on the Arun-3 project and the challenges it faces, including land issues. Necessary approvals were also discussed for the pre-construction activities of the Lower Arun project. SJVN aims to strengthen energy security and promote sustainable power generation in Nepal.
Modi says 500 million people lifted out of extreme poverty in 10-12 years, cites World Bank report
Prime Minister Narendra Modi said India has lifted 500 million people out of extreme poverty over the past 10-12 years, citing a recent World Bank report. Speaking after virtually inaugurating Pune Metro Line 3, he linked economic growth and poverty reduction to infrastructure investment, direct benefit transfers and job creation.
US midterm outcome offers limited relief to India; oil, Russia sanctions remain key risks: Report
The outcome of the US midterm elections is expected to offer only marginal relief to India. Crude oil prices and potential tariffs on Russian oil purchases will continue to present economic challenges. While a Democratic majority may enhance diplomatic engagement, immediate trade relief seems unlikely. The rupee and foreign portfolio investor inflows could see some positive impact.
IndoBevs in talks with multiple bankers for Rs 150 crore fund raise
IndoBevs is seeking to raise Rs 150 crore in debt to enhance its manufacturing and distribution capabilities. The company aims to strengthen its presence in domestic and international markets through this funding. IndoBevs has witnessed substantial growth, with a 32% increase in profit after tax for FY26. The alcohol beverage sector is increasingly focusing on premium products, driven by changing consumer preferences.
India takes calm view of US midterm results, sees bipartisan support anchoring ties
India is observing the results of the recent US midterm elections with a sense of calmness and stability. The Democrat victory is seen as a move to limit the influence of the Trump administration. India has maintained strong relations with both parties in Congress since 2000 through various sectors.
Crazy economics gets a stop button
After the US midterm elections, stock futures show a positive reaction despite ongoing economic uncertainties. Trump's legislative agenda faces gridlock, impacting his trade and immigration policies significantly. The focus will shift to regulating AI, potentially stalling infrastructure growth in the US economy. India's position in trade negotiations may improve due to Trump's need for success overseas.
Sounds of sustainability: Yamaha’s test of whether instrument-making and forest conservation can strike a chord
Yamaha's environmental initiative is dedicated to conserving and cultivating forests used in musical instrument production, with a specific focus on preserving Indian rosewood.
Trump's midterm setback may put India under pressure for quick trade deal on US terms: GTRI
Amid electoral challenges, US President Donald Trump is likely to ramp up pressure on India to seal a trade deal. This potential agreement would require India to decrease import tariffs on US goods while the US keeps its tariffs intact. Analysts caution that such an arrangement may breach WTO MFN principles, undermining India's trade credibility. Additionally, compromising energy security and development aspirations could have serious implications.
US midterm election results: Indian-origin US Congressman Ro Khanna wins California election, backs H-1B visa reform and immigrant rights
In a resounding victory, Congressman Ro Khanna, of Indian descent, has been re-elected in California's 17th District, garnering an impressive 72 per cent of the votes cast against his Republican opponent, Ritesh Tandon. As a notable progressive figure in Congress, Khanna is a fierce advocate for immigrant rights and champions reforms in the tech sector.
Make urban legend real: Our cities must become far more business-friendly for India to achieve high per-capita income
India's urban population has grown slowly, with a significant portion living in small rural habitations. The country requires substantial rural-urban migration to boost urbanisation and economic productivity. Urban centres must create favorable business environments to attract new and expanding enterprises. State governments should implement measures to alleviate urban land scarcity and improve labor regulations.
SC to decide forum for Google billing disputes
Questioning the app developers on whether their contracts with Google allowed them to opt out of its payment system and engage other payment service providers, a bench comprising Justices PS Narasimha and Alok Aradhe said that the commission, being a market regulator, ensured that goods and services were distributed effectively without exploitation. But for contracts where there was a promise and agreement in existence, its enforcement could be sought in a civil court only, it said.
India will become the world’s largest economy by end of the century, predicts top economist Jeffrey D Sachs
Renowned economist Jeffrey D Sachs said India could become the world’s largest economy by the end of the century, with a population twice that of China. Speaking at the World Symposium on "Ancient Wisdom for Modern Challenges" in Varanasi, he said the world was moving towards a multipolar order where no single country or region would dominate.
Uncertainty is certain: India is resilient and will emerge stronger
Despite global uncertainty, India remains well placed to weather economic and market disruptions, supported by resilient growth, deeper domestic capital markets and rising private investment. Stronger institutions, infrastructure spending and emerging industries could further reinforce the country’s long-term prospects.
All hands on the deck: Next few months, govt faces a test of political will to take hard economic calls
India is likely to face a host of economic and political pressures due to upcoming elections and external geopolitical factors. Balancing relationships with Iran, the UAE, Saudi Arabia and Israel will be crucial for India's energy security. Political and economic manoeuvres may become necessary to address rising crude oil prices and currency pressures.
FM Sitharaman acknowledges foreign investor anxiety, says she will consider voices seeking tax changes before Budget
Union Finance Minister Nirmala Sitharaman acknowledged concerns from investors regarding potential tax changes to support equity markets. She emphasized that while taxation is vital, India's economic indicators remain robust and positive. Sitharaman highlighted the necessity for capital expenditure to sustain economic growth and fiscal prudence. On welfare, she noted significant improvements in access to essential services contributing to decreased poverty levels.
November could favour bulls, but macro headwinds cloud outlook
In November, investors are optimistic about Indian equities due to ongoing festive celebrations and better-than-expected corporate earnings. While the Sensex and Nifty boasted gains in October, other market indices saw declines. However, potential threats such as rising crude oil prices and global uncertainties remain. A noticeable surge in purchases by foreign portfolio investors signals renewed interest in Indian stocks.
'Took stock of our bilateral cooperation': EAM Jaishankar meets US Secy of State Rubio on sidelines of G20
S Jaishankar held a bilateral meeting with US Secretary of State Marco Rubio in Atlanta. The meeting focused on enhancing India-US cooperation and addressing geopolitical issues. Jaishankar emphasized that military solutions are not viable for resolving global challenges. Rubio also highlighted the importance of protecting economic and maritime security during the discussions. The G20 Foreign Ministers' Meeting concluded with crucial dialogues on international economic stability.
UK minister calls for speedier India-UK healthcare innovation
UK Health Minister James Frith addressed the Westminster Diwali gathering in London, highlighting the need for healthcare innovation adoption. He noted that India excels in digital innovation, while Britain leads in research and life sciences. The India-UK Comprehensive Economic and Trade Agreement has created opportunities for deeper cooperation. Indian High Commissioner P Kumaran emphasized India's manufacturing capabilities and ambition for commercial innovation.
RBI deliberates economic risks at 625th Central Board meeting chaired by Governor Sanjay Malhotra
The Reserve Bank of India conducted its 625th Central Board meeting under Governor Sanjay Malhotra. The board reviewed economic conditions and potential risks facing India’s economy while evaluating the Deposit Insurance and Credit Guarantee Corporation’s activities. Additionally, the board members participated in the Integrity Pledge as part of Vigilance Week 2026. Deputy Governors and other board members contributed to the discussions during the meeting.
'2026 resembles 1991': CEA Nageswaran says India is at a critical economic inflection point
Chief Economic Advisor V Anantha Nageswaran emphasized that 2025-26 could be a significant inflection point for India's economy. He mentioned the challenges posed by global shocks and supply-side disruptions in recent years. The reliance on imported crude oil adds to India's vulnerability to fluctuating international energy prices. Strengthening resilience to external disruptions is crucial for managing such risks effectively.
87% of India CEOs confident of growth despite cyber, geopolitical risks: KPMG
Nearly 87% of Indian CEOs are confident about their companies' growth prospects in the next three years. They are increasing investments in cybersecurity to mitigate risks associated with growing threats. Attracting and retaining employees remains a major challenge along with skill gaps. Additionally, 66% of CEOs say sustainability is integrated into core strategies for future growth.
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