Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Thursday, January 16, 2025. This is Nelson John, let's get started.

A group of prominent investors, including Switzerland's Partners Group AG, Canada's Brookfield Asset Management, and KKR, are eyeing a stake in Indian internet services provider Excitel Broadband. They're part of a $200 million equity deal and have signed non-disclosure agreements as part of the process managed by Avendus Capital. Other potential investors like Macquarie Group, Apax Partners, and Actis Llp are also in the mix, reflecting strong interest in the company, which was founded in 2015 and now serves 1 million subscribers across 55 cities. Utpa Bhaskar reports on the potential acquisition of Excitel.

The Indian government is considering a revision of customs duties and procedures in specific sectors for the FY26 Union budget. This initiative aims to make it more appealing for manufacturers of finished goods to also produce components or semi-finished products, thereby enhancing trade ease and export competitiveness. Particularly, the electronics and consumer goods segments, including air conditioners and washing machines, might see duty revisions to encourage domestic production of components, according to Gireesh Chandra Prasad and Dhirendra Kumar's report. This strategy follows the successful model used in the mobile phone industry, where increased customs duty on finished products spurred local component manufacturing.

Travel companies are buzzing with excitement as the Maha Kumbh Mela in Prayagraj is expected to draw a staggering 400 million visitors over the next six weeks. This year's festival is extra special, marking a 144-year cycle milestone, and it's triggered a massive demand spike for travel and accommodation. Responding swiftly, Air India has launched daily flights from Delhi to meet the soaring demand, with airfare prices shooting up significantly. Hotels are also seeing a tenfold booking increase, with costs rising across nearby cities like Varanasi, reports Varuni Khosla. Travel agencies, including giants like Thomas Cook, are capitalizing on the surge, rolling out extensive packages that range from basic stays to luxury spiritual retreats. The festival's economic impact is immense, with an expected generation of Rs 2 trillion in revenue, benefiting not just the travel sector but also local businesses across a spectrum of industries.

In the chilly fog of the Khanauri border between Punjab and Haryana, a renewed farmer protest simmers along National Highway 52. Thousands of farmers have braved the elements since February of last year, their resolve unshaken by winter's bite, this time demanding legal backing for Minimum Support Prices (MSP) for their crops. These protests, although less vibrant than the massive gatherings at Delhi’s borders in 2020, are deeply rooted in concerns over crop pricing. The government does set MSPs annually for 23 crops, but in reality, consistent purchases at these prices are mostly limited to wheat and rice. Farmers argue this system fails to protect them against market volatility, particularly for crops like groundnuts, soybeans, and moong, where they often receive less than the promised MSP. So, is there an end in sight to these protests? Sayantan Bera tackles that question as he takes a deep dive into the ongoing farmers' protests in today’s Long Story.

The upcoming Union budget is set to show Indian Railways' operating ratio at its best in five years for FY26, thanks to higher freight revenue and increased government funding. This key efficiency metric, which indicates how much the Railways spend to earn ₹100, is expected to dip below 98% for the first time since FY21, signalling stronger financial health and more room for capital expenditure. This improvement follows a few tough years where the operating ratio often exceeded 98%, highlighting financial strains mainly due to heavy pension liabilities, writes Subhash Narayan. However, from FY23 onwards, a rebound in freight and passenger revenues has bolstered the Railways' finances, suggesting a sustainable recovery is in the cards.

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Wednesday, January 15, 2025. This is Nelson John, let's get started.

Telangana owes roughly ₹3,900 crore to alcohol businesses, a substantial amount of dues that has been accumulating under the administration of Telangana Beverages Corporation Ltd (TGBCL), a state-run entity controlling alcohol sales. This situation stems from TGBCL's static pricing model since 2018-19 and delayed payments, straining suppliers like United Breweries Ltd (UBL), which has even halted beer supplies due to unprofitability. TGBCL's financial woes are due to decreased non-tax revenue, which fell dramatically short of the 2024-25 projections, coupled with high expenditures from recent political commitments. This financial shortfall has led to payment delays, with outstanding dues only partially cleared post-September 2024. Varuni Khosla explains what went wrong with the alcohol industry in Telangana.

The recent heavy selling by foreign portfolio investors has significantly impacted the Indian stock market, wiping out nearly ₹60 trillion in investor wealth over the last three and a half months. This sell-off, primarily fueled by FPIs withdrawing a net ₹1.85 trillion since October, has coincided with a weakening rupee and rising oil prices,reports Ram Sahgal. Market capitalization plummeted from a high of ₹473.84 trillion on September 27, when the Nifty 50 index peaked, to ₹414.23 trillion recently, marking a 12% drop in the benchmark index. Both the Nifty Smallcap 250 and Nifty Midcap 150 indices have similarly fallen by 13.5% from their late September highs. The primary drivers for this exodus include the depreciation of the rupee and escalating crude oil prices, influenced by new US sanctions on Russia and anticipated policy shifts as the US transitions from President Joe Biden to President-elect Donald Trump.

India is currently in talks with several countries to establish "data embassies" on its soil, a move aimed at allowing these nations to store and control their sovereign data while enhancing India's role as a secure data hub. Particularly advanced are discussions with the UAE to set up its first data embassy in India, Shouvik Das reports. The plan involves creating special zones dedicated to housing these data embassies, similar to how consular sections of embassies operate, ensuring the home country manages all privacy and access controls. The idea, inspired by Estonia's establishment of the world’s first data embassy in Luxembourg following a cyberattack in 2007, could provide India with significant geopolitical leverage. Data embassies could serve as secure storage sites during crises or allow countries to manage data without adhering to local data laws, potentially simplifying international business operations.

The national rural job guarantee scheme, MGNREGS, might see a budget boost in FY26. Although this year's funding isn't expected to change, there's talk of increasing it next year due to potential challenges in the rural economy. Despite some recent improvements in rural consumption thanks to better rainfall, the number of people seeking work under the scheme hit a four-month high in December, reaching 25.73 million. This spike shows there's still a big need for support, Dhirendra Kumar and Rhik Kundu report. A parliamentary committee has even pushed for higher wages in the scheme to keep up with inflation, which would mean more money is needed. So, while FY25's allocation might stay the same, the government is looking to ramp up funding in FY26 to keep supporting those in need.

Kolkata is experiencing a renaissance in its real estate and business sectors, shaking off its old image as a less business-friendly city. Recent developments include major projects like Phoenix Mills Ltd's creation of the city's largest mall in Alipore and Ambuja Neotia Group's expansion into luxury hotels and residential projects. The city is also drawing attention from the IT sector, as highlighted by Infosys opening a major development centre in New Town, which is expected to house 4,000 employees. This move supports the state's ambition to transform the area into a 'New Silicon Valley,' potentially generating 75,000 jobs. Despite these advancements, Kolkata's growth is hampered by outdated land acquisition laws that complicate large-scale development projects, Madhurima Nandy writes. While the state government has acknowledged these issues and promised reforms, progress has been minimal.

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Tuesday, January 14, 2025. This is Nelson John, let's get started.

Mark Zuckerberg has announced that Meta is saying goodbye to independent fact-checking on Facebook and Instagram. Instead, they're rolling out a new system called 'community notes,' similar to what's used on Elon Musk's X. This new setup will rely on users to flag false information through a consensus mechanism. Zuckerberg's big push here is to cut down on automatic post bans and broaden the type of political content allowed, aiming to reduce what he sees as excessive control by automated systems. In India, where Meta deals with a highly complex landscape of 18 languages, they currently work with 11 fact-checking partners. Shouvik Das writes how the transition to community-driven fact-checking might struggle with accuracy, as seen with X's challenges in India, one of the world's biggest online markets. Yet, Meta might fine-tune this approach, possibly reintroducing some human oversight to strike a balance.

Alivaa Hotels, a fledgling hospitality company backed by Ananta Capital, is rapidly expanding with an ambitious plan to manage 50 properties in five years using an asset-light model of leasing rather than owning properties. This trend of leasing properties is gaining traction among new-age hoteliers who see it as a way to reduce capital expenditure and increase agility in the competitive hospitality industry, reports Varuni Khosla. By renting properties and focusing on high-margin room services, companies like Alivaa can streamline operations and focus on profitability. This model is particularly appealing in tier II and III cities, where property ownership costs can be prohibitive.

India is stepping up its game to improve quality standards for consumer products, taking cues from the US and EU. The government is aiming to weed out counterfeits by introducing random testing and focusing on high-risk items like electronics and toys, Dhirendra Kumar reports. This shake-up, managed by the Bureau of Indian Standards along with other bodies like the Food Safety and Standards Authority for food items, is a response to concerns about nearly a third of the market's goods being fake. With stricter checks and a focus on transparency, India hopes to boost consumer confidence and ensure safety, paving the way for a thriving market that's projected to boom and create numerous jobs by 2030.

The podcast industry in India, which boomed during the COVID-19 lockdowns, is now evolving from audio-only formats to include visual content, primarily on platforms like YouTube. This shift is attracting a broader audience and making it easier to secure advertising and sponsorships. However, the increased production costs pose a challenge to profitable monetization. Amit Doshi of IVM Podcasts-Pratilipi told Lata Jha that while viewership has skyrocketed with the addition of video, the higher drop-out rates on YouTube compared to audio-only formats suggest that engagement levels may vary. Industry insights suggest a diverse range of popular genres, from horror to self-help, are thriving, particularly on Spotify. Yet, there's a concern about the passive consumption of podcasts in public spaces, which might inflate viewership figures without reflecting genuine engagement.

The landscape of consumer engagement is rapidly changing with the emergence of direct-to-consumer (D2C) brands. These companies are bypassing traditional retail pathways to connect directly with consumers, addressing niche markets often overlooked by larger corporations. Whether it’s specialized hair care products or innovative mattresses, D2C brands are carving out significant spaces for themselves, writes Suneera Tandon. This shift is prompting major industry players to adapt. Giants such as Hindustan Unilever and P&G are responding by either acquiring these nimble startups or launching their own D2C initiatives to stay competitive. It's an exciting era for both consumers and marketers as this new wave of personalization and direct engagement reshapes purchasing behaviours and product offerings.

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Friday, January 10, 2025. This is Nelson John, let's get started.

A recent report by the State Bank of India has sparked widespread debate with its claim of a significant reduction in India’s poverty levels. The report suggests rural poverty fell sharply from 25.7% in 2011-12 to just 4.86% in 2023-24, alongside a notable decline in urban poverty. It attributes this dramatic improvement to the success of government initiatives, including direct cash transfers and infrastructure development. However, as Nandita Venkatesan writes, the methodology behind these figures has come under scrutiny. Critics argue that the report’s approach—adjusting old poverty lines for inflation to measure current poverty—fails to account for shifts in consumption patterns and changes in survey methodologies over the past decade, potentially skewing the conclusions.

India’s stock market is bracing for heightened volatility as foreign portfolio investors (FPIs) adopt their most cautious stance in seven months. As of January 8, FPIs’ combined net short positions on Nifty and Bank Nifty futures surged to 238,321 contracts, the highest level since June, according to data from IndiaCharts and the NSE. This sharp increase in bearish bets reflects growing concerns over both domestic and global economic uncertainties, reports Ram Sahgal. FPIs have been consistently shorting Indian markets, driven partly by India’s revised economic growth forecast of 6.4% for FY25, a four-year low and slightly below the Reserve Bank of India’s projection of 6.6%. Adding to the unease is the timing, with Donald Trump’s imminent inauguration as US President stoking fears of tariff wars and stricter immigration policies—both of which could disrupt the global economic landscape.

As 2025 unfolds, identifying the Indian sectors poised to lead the charge can feel like a guessing game. To cut through the uncertainty, Mint’s Abhishek Mukherjee sought insights from three major AI chatbots: OpenAI's ChatGPT, Elon Musk's Grok, and Google's Gemini 2.0. While each emphasized the speculative nature of market predictions—shaped by dynamic factors like economic policies and global events—their perspectives offer intriguing takeaways. Read today’s Long Story to see what these AI models foresee for the markets.

The Maha Kumbh Mela, returning after 144 years and expected to draw millions to Uttar Pradesh, has become a prime target for cybercriminals. Experts from Aon, mFilterIt, and Quick Heal warn of a surge in sophisticated cyberattacks aimed at stealing personal and payment information. Scammers are leveraging the event's vast digital footprint, creating fake websites and using platforms like WhatsApp to trick pilgrims into paying for fraudulent services. In response, the Uttar Pradesh government and police are stepping up cybersecurity measures, report Pratishtha Bagai and Devina Sengupta. A dedicated cyber police station has been established in Prayagraj, and authorities are closely monitoring and securing online platforms to safeguard attendees from digital threats.

The sudden passing of Amit Banerji, founder of Table Space, from cardiac arrest has sent shockwaves through the startup community, highlighting the toll of intense pressure and poor work-life balance in the industry. Banerji’s death is the second such incident in a month, sparking renewed concern about the health and work habits of startup founders. Industry leaders, including Kunal Bahl of Titan Capital and Snapdeal, are urging a shift toward sustainable work practices, emphasizing that long-term business success depends on prioritizing health, reports Sneha Shah. Recent high-profile cases, such as Rohan Mirchandani of Epigamia and Ambareesh Murty of Pepperfry, who also succumbed to fatal health issues, underscore the risks of high-stress startup leadership. In response, there is a growing call for founders to adopt a healthier balance between their professional and personal lives. Some are turning to therapy, while others are being encouraged by boards and investors to take breaks, pursue hobbies, and focus on downtime to avoid burnout.

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Thursday, January 9, 2025. This is Nelson John, let's get started.

India's manufacturing sector is facing a slowdown, weighing heavily on economic growth. Manufacturing growth slipped to 2.2% in the second quarter of this fiscal year, a sharp decline from 7% in the first quarter. This slump dragged overall industry performance, pulling GDP growth down to 5.4%, compared to 8.1% in the same quarter last year. The primary driver of this slowdown is a significant drop in urban demand. City dwellers, burdened by stagnant wages and rising food prices, are cutting back on spending. While rural demand shows signs of recovery, it’s insufficient to offset the urban slump. Adding to the woes, exports grew at a modest 2.8%, and the heavy monsoon season disrupted power generation and mining activity.

The government remains hopeful, though, viewing the slowdown as temporary and expecting a rebound in power and mining post-monsoon. In today’s Primer, N. Madhavan explains why a quick revival in consumer demand is crucial to reignite economic momentum.

India faces a stark water crisis, with some regions grappling with floods while others endure severe droughts. To address this imbalance, the government is adopting a dual strategy—supplementing the traditional inter-state river-linking approach with localized intra-state projects. This aims to redistribute surplus water more effectively to arid regions. Currently, over 60% of India’s districts are categorized as high-risk for climate-related disasters such as floods and droughts, according to Puja Das. In response, the central government is encouraging states to develop their own intra-state river-linking proposals. This initiative complements the ongoing Ken-Betwa Link Project, India’s flagship inter-state river-linking venture.

Noida-based Astrotalk has skillfully brought the ancient practice of astrology into the digital age, capitalizing on its deep-rooted influence in Indian daily life. The platform connects over 41,000 astrologers with more than 450,000 users. Astrotalk’s financials reflect its success, with revenues soaring to ₹651 crore and profits reaching ₹100 crore in a single fiscal year. The company’s growth has been fuelled by a $30 million venture capital injection, pushing its valuation to $300 million. However, challenges have also emerged. A recent shift in the platform’s revenue-sharing model has sparked discontent among astrologers. While earnings were initially split equally, Astrotalk now retains a larger share of revenue from the initial minutes of consultations, reports Samiksha Goel. This change has left some astrologers feeling like they’re operating in a call center, incentivized to prolong conversations to secure fair payouts. The pressure has strained relationships, with some astrologers walking away, frustrated by what they perceive as a shift from genuine astrological guidance to profit-driven dynamics.

The Indian government is rolling out a strategy to transform the northern region into a manufacturing hub, aiming to boost economic growth and reduce regional disparities. Spearheaded by the Prime Minister's Office, the initiative focuses on driving significant infrastructure investment and implementing policies to promote regional manufacturing equity. At the heart of the plan is the ₹10,037 crore Uttar Poorva Transformative Industrialization Scheme (UNNATI—2024), a decade-long program designed to incentivize industries across North India. Key regions such as Kanpur, once hailed as the 'Manchester of the East,' and Jammu & Kashmir, known for its rich crafts and agricultural produce, are central to this effort. The initiative seeks to leverage the untapped potential of these regions to address the stark economic divide between northern and southern states—a disparity that has led states like Karnataka, Kerala, and Tamil Nadu to question the fairness of federal financial allocations.

Major players in Indian industry, including Hindustan Unilever, Bharti Enterprises, and the Tata Group, are refocusing on their core business areas. This strategic shift aims to sharpen their competitive edge, reduce debt, and enhance shareholder value. Devarajan Nambakam of Goldman Sachs told Priyamvada C. that high-interest rates and the potential to unlock value from mature investments are key drivers of this trend. He anticipates this focus on core strengths will persist well into 2025 as companies navigate a rapidly evolving economic landscape.For example, Adani Enterprises recently divested its stake in a joint FMCG venture, and Bharti Enterprises exited its food business. Such moves allow companies to redirect resources toward their primary operations, where they foresee the greatest growth and stability.

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Tuesday, January 7, 2025. This is Nelson John, let's get started.

The Indian stock market tumbled on Monday, with benchmark indices Sensex and Nifty 50 both plunging over 1.5%, as widespread selling gripped the market. Investor sentiment was rattled by reports of a new virus outbreak in China, fueling fresh concerns.

India's real estate sector is poised for an eventful year. While the office market shows promise, driven by demand from global capability centers and tech companies, challenges loom. A shortage of premium office spaces in key markets like Mumbai and Bengaluru could hamper growth unless new, high-quality projects come online. On the residential front, the momentum seen post-pandemic is slowing. Elevated property prices in several cities are deterring buyers, potentially prompting a shift towards affordable housing as the market undergoes a correction. Madhurima Nandy explores the key factors shaping the outlook for the real estate market this year.

The Indian government is set to introduce a new policy aimed at driving sustainability in the micro, small, and medium enterprise (MSME) sector. This initiative will provide financial, technological, and regulatory support to help MSMEs adopt greener practices, aligning with India's net-zero carbon emissions target for 2070. Rituraj Baruah and Manas Pimpalkhare report that a dedicated body under the MSME ministry will oversee this transition, ensuring a smooth shift to sustainable operations. Beyond environmental goals, the policy aims to ease the financial burden on small businesses by offering a robust support system to manage the costs of these changes.

India’s consumer goods companies are bracing for a tough third quarter with expected low single-digit revenue growth and margin contraction. Despite price hikes aimed at combating inflation, weak urban demand and a delayed winter have dampened the sector's performance. Suneera Tandon spoke to Nitin Gupta from Emkay Global, who told her that only a few companies like ITC, Marico, and Bikaji might report double-digit revenue growth. Marico has seen some support from rural markets and has raised prices on products like Parachute coconut oil to cope with rising costs. However, the overall urban demand is expected to remain subdued for a few more quarters, with further price hikes likely as companies grapple with high input costs affecting essentials like soaps and edible oils.

After stepping down as managing director of Kotak Mahindra Bank, Uday Kotak isn’t hitting the brakes. Instead, he’s channeling his energy into USK Capital, his family office, where he’s focused on investing in businesses with long-term growth potential and mentoring the next generation of business leaders. While no longer in a full-time banking role, Kotak remains actively involved as a non-executive director on the bank’s board. In a recent conversation with Mint’s Satish John and Gopika Gopakumar, he shared insights on topics ranging from privatization and regulatory challenges to Starlink's entry into India’s telecom space. At 65, Kotak remains steadfast in his vision of witnessing India emerge as a global powerhouse within his lifetime.

In 2024, while foreign institutional investors (FIIs) took a cautious stance on Indian equities, domestic institutional investors (DIIs) confidently stepped in. Notably, when FIIs recorded their largest sell-off of the year in October, DIIs countered with their highest-ever monthly purchases for the period. This marked the fourth consecutive year where DIIs outpaced FIIs in market investments, according to a report from IIFL Securities. Although FIIs showed signs of a minor comeback in December, it’s still uncertain whether this trend will persist in 2025. Experts at Bajaj Broking suggest that FII caution might continue, driven by global and local economic challenges. Looking ahead, market sentiment remains cautiously optimistic. If the upcoming budget strikes the right chord with investors, it could pave the way for a stronger FII resurgence, writes Dipti Sharma. India’s core growth fundamentals remain robust, and with favourable global conditions and strategic domestic policies, foreign interest could see a meaningful revival.

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Monday, January 6, 2024. This is Nelson John, let's get started.

China has a new virus! There is a rising concern about respiratory infections in the country, particularly with an increase in cases of Human Metapneumovirus among children under 14. This virus, part of the same family as the respiratory syncytial virus, has sparked worries due to its symptoms and transmission methods, which are reminiscent of COVID-19. Unlike COVID-19, however, there's no vaccine or specific treatment for HMPV, adding to the global health anxieties. The increase in cases, especially noted in northern China, comes during the usual flu season but has raised some eyebrows globally due to fears of a pandemic-like spread, reminiscent of the early COVID-19 days. However, health experts note that HMPV isn't new; it's been around since 2001 and pops up seasonally in places like the US and UK. Jessica Jani explains what the new virus is and how it could affect the human body, in today’s Primer.

Donald Trump's second presidential term has reignited concerns over H-1B visas, critical for India's $250-billion IT services sector. Historically, these visas have been essential for employing highly skilled non-immigrants in the US. However, Indian tech companies are less vulnerable today than in the past due to a strategic shift towards hiring more Americans and reducing dependency on H-1B visas. Jas Bardia spoke to IT industry insiders who told him that IT companies are hiring more locally in the US, which decreases the reliance on H-1B visas. US firms now employ more Americans than H-1B visa holders in these roles. Data shows that major Indian IT firms, including Cognizant, Infosys, Tata Consultancy Services, and Wipro, have significantly reduced their H-1B visa applications over the last decade.

2024 marked a significant increase in ultra-luxury real estate transactions in India, with cities like Delhi-NCR, Mumbai, and Bengaluru seeing record deals for homes costing over Rs 100 crore. Speaking to Mint’s Khushi Malhotra, Ritesh Mehta of JLL highlighted the growth in this sector, noting high-value transactions on Gurgaon's Golf Course Road and South Mumbai's Malabar Hill. This surge reflects a robust confidence in ultra-luxury real estate as a stable investment. The data from PropEquity revealed 13 such transactions between January and October last year, a slight decrease from 21 in 2023. Anarock Group’s data also shows that 99 ultra-luxury residential deals worth Rs 8,069 crore were closed over the past three years.

India’s new Digital Personal Data Protection Act, 2023 is causing a stir with its latest draft rules, especially around the new requirement for parents to verify their identity when their kids want to use online platforms. This proposal is sparking quite a debate about its practicality and the potential headaches it could cause for both families and companies. The draft rules suggest parents need to prove they’re really the guardians using digital IDs like the Digilocker platform, Souvik Das reports. While this is meant to keep kids safe online, it’s also raising concerns about the extra burden it places on companies that now have to manage this verification process.

Ketan Parekh, once celebrated as a prime mover of India's stock market, found himself implicated in a new scandal. Decades after being banned for a major 2001 market scam, Parekh is accused of using insider information to manipulate trades, profiting ₹38.7 crore. Additionally, a Singapore-based trader linked to him earned ₹27.07 crore in commissions, leading the Securities and Exchange Board of India (Sebi) to seek a return of ₹65.77 crore from those involved. The investigation, lasting over two and a half years, involved deep dives into financial records, phone data, and digital communications across multiple platforms. Sebi’s detailed probe revealed Parekh’s use of various tactics to disguise his involvement, including using multiple mobile numbers registered under different names and employing pseudonyms. Neha Joshi takes an in-depth look at the 30-month investigation undertaken by the market regulator, which ended up with Parekh’s implication.