Tag: India

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Beyond

India’s resilience built on reforms, growth nears 8%

India’s economy is moving closer to the 8% growth mark, but sustaining that momentum will depend on continuing structural reforms, strengthening domestic capacity and maintaining macroeconomic stability, Shaktikanta Das, Principal Secretary-2 to Prime Minister Narendra Modi, said at the Kautilya Economic Conclave.

Das said India’s economic resilience in the face of global shocks was not accidental. It was the result of a broad set of reforms implemented over the past decade, with measures in taxation, banking, inflation management, digital payments, infrastructure and fiscal policy working together to strengthen the economy.

He also said the country was at an important stage of its development journey, with the goal of building a developed India by 2047 increasingly within reach. “A leap to Viksit Bharat by 2047 is very much in the realm of realisation,” Das said.

The comments come against the backdrop of strong recent economic growth. India’s real GDP expanded 7.8% in the first quarter of 2026-27, supported by domestic demand and investment. Das said growth over the period from July-September 2025-26 through April-June 2026-27 had averaged slightly above 8%, putting the economy within “striking distance” of that level.

Das identified three broad pillars behind India’s economic resilience: stronger governance and state capacity, macroeconomic stability, and investment in long-term productive capacity.

Several reforms, he said, were designed not as one-time policy interventions but as buffers that could help the economy absorb shocks and recover faster. Flexible inflation targeting, the Goods and Services Tax, the expansion of digital payments and banking-sector reforms were among the measures he highlighted.

India’s digital public infrastructure has also played an important role. The Jan Dhan-Aadhaar-Mobile framework helped the government deliver financial assistance quickly during the Covid-19 pandemic, while direct benefit transfers reduced leakages in welfare schemes. Das said such measures had strengthened the relationship between citizens and the state while improving the efficiency of public spending.

Macroeconomic stability has been another important part of the reform story. Das pointed to inflation management, fiscal consolidation, tax reforms, financial-sector strengthening and prudent external-sector management as factors that have improved India’s ability to withstand disruptions.

The banking sector, in particular, has undergone a significant clean-up. Gross non-performing assets of banks had fallen to 1.68% in June 2026, while bank profitability had improved, according to Das. A healthier financial system gives banks greater capacity to support investment and economic activity.

Infrastructure and productive capacity are also becoming increasingly important to India’s growth strategy. Das pointed to programmes such as Gati Shakti, the National Logistics Policy, Sagarmala and Udan, alongside investments in energy and manufacturing.

He said India was also working to reduce vulnerabilities arising from import dependence. Areas such as energy, fertilisers and rare-earth permanent magnets require greater domestic capacity, particularly at a time when global supply chains remain vulnerable to geopolitical disruptions.

At the same time, Das stressed that self-reliance should not mean economic isolation. India needs to strengthen domestic capabilities while remaining connected to global markets, supply chains and trade opportunities. Greater integration through free-trade agreements and stronger domestic manufacturing would be important for the next phase of growth.

The global environment, however, remains challenging. Das pointed to wars, geopolitical fragmentation, unilateral trade measures, technological restrictions, energy-price volatility and rising inflation as risks that could slow global growth. High public debt in advanced economies is also pushing up bond yields and limiting the fiscal room available to governments to respond to future shocks.

India, he said, is better placed to absorb some of these shocks because of stronger domestic demand, investment conditions and improvements in its financial architecture. The country’s diversification of energy sources, including renewables, biofuels and nuclear power, is also intended to reduce exposure to external energy disruptions.

Looking ahead, Das identified five areas that could shape India’s next phase of economic development: artificial intelligence, deeper financial markets, strategic self-reliance, sustainable development and human capital.

Artificial intelligence could raise productivity and improve public services, healthcare, education and scientific research, but Das also flagged concerns around data governance, cybersecurity, algorithmic bias and AI safety.

India will also need deeper sources of long-term finance as its economy expands. Das highlighted the need for stronger corporate bond markets, pension and insurance funds, infrastructure finance and green and transition finance.

The broader message from Das was that India’s next stage of growth cannot rely solely on headline GDP numbers. The focus has to shift towards building an economy that is productive, financially stable and capable of absorbing global shocks.

With growth already approaching 8%, the challenge now is to sustain that momentum while ensuring that reforms continue to strengthen the foundations of the economy. For India’s Viksit Bharat 2047 ambition, Das suggested, resilience and long-term capacity will be just as important as rapid growth.

 

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Technology

Google brings Fitbit Air to India

Google has launched the Fitbit Air in India, adding a new screen-free option to the country’s growing wearable technology market. Priced at ₹13,999, the fitness tracker is designed to monitor health, activity and sleep continuously without putting a display or notifications on the user’s wrist.

The Fitbit Air will be available in India from October 2 through the Google Store and selected retail partners. It comes in four colours — Obsidian, Berry, Lavender and Fog.

Unlike a smartwatch or conventional fitness band, the Fitbit Air has no screen. It is built around a small, lightweight tracker that sits inside a wearable band. Users can check their health and fitness information through the companion Google Health app on a smartphone.

The screenless design is central to Fitbit Air’s pitch. Instead of encouraging users to check notifications, messages or statistics throughout the day, the device quietly collects health data in the background. The approach is aimed at people who want continuous fitness tracking without another screen competing for their attention.

The tracker monitors several health and fitness indicators. These include continuous heart rate, resting heart rate and heart rate variability. It also supports blood oxygen saturation, or SpO2, monitoring and irregular heart rhythm notifications associated with atrial fibrillation.

Sleep tracking is another major feature. Fitbit Air can monitor sleep duration and different sleep stages, including light, deep and REM sleep. The lightweight design also makes it suitable for overnight use, allowing users to collect sleep data without wearing a larger smartwatch.

Google is also using the Fitbit Air to expand its personalised health and fitness services. The device works with the company’s Health Coach, which analyses information collected through Fitbit and provides personalised guidance based on activity, sleep, recovery and other wellness data.

The Health Coach is designed to turn raw fitness data into more practical recommendations. Instead of simply showing how many steps a person has taken, the service aims to help users understand broader patterns and make changes to their exercise and recovery routines.

Workout tracking is another part of the experience. Fitbit Air can automatically identify and record certain activities. Google is also introducing features that use a smartphone camera to help users capture information about workouts and exercise equipment.

Battery life is one of the device’s key selling points. Google claims that Fitbit Air can last for up to seven days on a single charge. A quick five-minute charge can provide up to a day of use, making the tracker less dependent on frequent charging than many smartwatches.

The wearable uses interchangeable bands, giving users options for different activities and occasions. The Performance Loop comes with the tracker, while additional band choices include an Active Band designed for workouts and an Elevated Modern Band for everyday wear.

Indian buyers will also receive a three-month trial of Google Health Premium with the device. The premium service provides access to the complete Health Coach experience and additional personalised wellness features. Users will need to subscribe after the trial period to continue accessing those premium features.

At ₹13,999, however, Fitbit Air sits at a relatively high price point for a device that does not have a display. Its pricing could become an important consideration for Indian consumers, particularly those comparing it with conventional fitness bands, smartwatches and other screen-free health trackers.

The product enters a category that has gained attention globally through devices such as Whoop, which have popularised screen-free health and fitness tracking. Fitbit Air follows a similar concept but combines it with Google’s Fitbit ecosystem and Health Coach platform.

The difference between a smartwatch and the new Fitbit is therefore quite clear. A smartwatch puts notifications, apps, calls and health information directly on the wrist. Fitbit Air removes those functions and concentrates primarily on collecting health and fitness data.

The device can also complement a smartwatch rather than necessarily replace one. Users could wear a smartwatch during the day and switch to Fitbit Air for sleep or recovery tracking. Its smaller form factor could make continuous wear more convenient for some users.

Fitbit Air is compatible with both Android and iOS devices, giving it a wider potential audience beyond Google’s own smartphone users.

The launch comes as India’s wearable market continues to evolve. Consumers are increasingly looking for more detailed information about sleep, recovery, heart health, workouts and daily activity. At the same time, some users are becoming more conscious of the number of screens and notifications they interact with every day.

Fitbit Air attempts to address both trends with a single device. It collects detailed health information while deliberately leaving the display behind.

For Google, the launch strengthens Fitbit’s presence in India’s competitive wearable market and expands its portfolio beyond conventional smartwatches and fitness bands. For consumers, the product offers a different approach to wearable technology, focused on continuous health tracking rather than constant interaction.

The success of Fitbit Air in India will ultimately depend on how consumers weigh its screen-free design, health monitoring features, AI-powered coaching and seven-day battery life against its ₹13,999 price and subscription-based premium services.

 

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Beyond

Edible oil import duties cut

The Centre has cut import duties on major edible oils, including palm, soybean and sunflower oil, in a move aimed at easing cooking oil prices ahead of the festive season and containing food inflation.

The revised customs duties came into effect from September 24, with the government reducing the cost of importing both crude and refined edible oils. The move comes at a time when global vegetable oil prices and domestic retail rates have been rising, putting pressure on household budgets.

Under the new structure, the basic customs duty (BCD) on crude sunflower oil has been cut completely from 10% to nil. The BCD on crude palm oil and crude soybean oil has been halved from 10% to 5%.

The government has also reduced duties on refined oils. The BCD on refined palm and soybean oils has been lowered from 32.5% to 27.5%, while the duty on refined sunflower oil has been reduced to 22.5% from 32.5%.

The government said the reduction should lower the landed cost of imported edible oils and help pass on the benefit to consumers. It has also asked edible oil associations and companies to revise distributor prices and maximum retail prices in line with the lower import costs.

The timing is significant because edible oil demand typically rises during the festive months, when households buy more cooking oil for sweets, snacks and traditional food. Demand from restaurants, hotels, caterers and sweet manufacturers is also expected to increase during the Dussehra-Diwali period.

India is heavily dependent on imports to meet its edible oil requirement. More than 58% of the country’s annual consumption is met through imports, making domestic cooking oil prices particularly sensitive to international commodity prices, shipping costs and currency movements.

Palm, soybean and sunflower oils account for a large share of India’s edible oil imports. Recent increases in global prices, higher freight and insurance costs and a weaker rupee have pushed up the cost of bringing oil into the country.

Data from the Solvent Extractors’ Association of India showed that crude palm, soybean and sunflower oil landed at Mumbai ports on September 18 at about $1,265, $1,314 and $1,380 per tonne, respectively. Palm and soybean oil costs were around 11% higher than a year earlier, while sunflower oil was about 7% higher.

The increase in international prices has already reached Indian consumers. Government data showed average retail prices on September 23 at around ₹202.87 per kg for mustard oil, ₹166.87 for soybean oil and ₹153.89 for palm oil. These were higher than year-ago levels, with soybean and palm oil showing particularly sharp increases.

The latest duty cut is therefore expected to provide some relief to edible oil companies and consumers during a period of strong seasonal demand. However, the extent of the reduction in retail prices will depend on several factors beyond customs duties.

Global edible oil prices, freight rates, the rupee-dollar exchange rate, inventories and the availability of imported supplies will influence how much of the duty benefit reaches shoppers. Industry representatives have also cautioned that lower duties do not automatically translate into an equal reduction in retail prices.

The government has maintained a 19.25 percentage-point duty differential between crude and refined edible oils. This is intended to encourage domestic refining and discourage excessive imports of refined products. The policy allows domestic refiners to benefit from cheaper crude imports while continuing to add value within India.

The decision also comes against a backdrop of rising pressure on edible oil companies. Before the duty reduction, industry sources had indicated that companies were considering price increases of around 7-8% because of higher import costs. Retail prices had already risen in several categories over the past year.

The duty reduction could change that pricing outlook as the festive season approaches. Lower import costs may give companies room to absorb some of the pressure instead of passing the entire increase on to consumers.

There is also a longer-term policy consideration. While cheaper imports can help consumers in the short term, lower domestic prices can affect the economics of oilseed cultivation. Some industry observers have warned that sustained import dependence could influence farmers’ decisions on crops such as soybean and sunflower.

With festive demand expected to remain strong, the government is betting that cheaper imports and better transmission through the supply chain will help keep cooking oil prices under control.

The duty changes thus serve two objectives: providing near-term relief from elevated edible oil prices and managing inflationary pressure during a period when food consumption typically rises. How much consumers ultimately save will depend on global markets, currency movements and how quickly companies pass on the lower landed costs.

 

 

Categories
Technology

India joins global 6G security initiative

India has joined the United States and 24 other countries in a global initiative aimed at shaping the development of next-generation 6G networks, marking another step in New Delhi’s efforts to have a stronger voice in emerging telecommunications technologies.

The initiative focuses on making future 6G networks more secure, resilient and interoperable while encouraging competition and innovation. India’s participation brings its growing ambitions in advanced telecommunications into a wider international framework, at a time when countries are beginning to work on the standards and technologies that will eventually underpin 6G.

The US Department of Commerce announced India’s inclusion following discussions between US Commerce Secretary Howard Lutnick and India’s Minister of State for Commerce and Industry Jitin Prasada on the sidelines of the G20 Innovation Ministerial meeting in Chapel Hill, North Carolina.

The meeting was held on September 1 and 2 and was hosted by the US Department of Commerce and the White House Office of Science and Technology Policy. Prasada led the Indian delegation at the gathering.

India has joined what is formally known as the Call to Action for 6G Leadership and Security, a policy framework launched by the US National Telecommunications and Information Administration in July. With India’s addition, the group now represents 26 governments.

The original group included countries such as the US, United Kingdom, Japan, South Korea, Australia, Canada, France, Germany, Finland and Sweden.

The initiative comes at an early stage in the global 6G race. Unlike an agreement involving a specific telecom project or investment, the framework is primarily focused on policy coordination and international cooperation. It does not currently include a dedicated funding commitment, spectrum allocation or a country-specific 6G deployment schedule.

Instead, participating countries are expected to work together on issues that could determine how future wireless networks are designed and operated.

Network security is one of the central areas. The framework also covers interoperability, resilience and the use of trusted artificial intelligence in the development and operation of 6G infrastructure. These issues are becoming increasingly important as telecom networks evolve into critical infrastructure supporting everything from digital payments and autonomous systems to healthcare, manufacturing and public services.

For India, the move is significant because the country is already working on its own 6G roadmap. The Bharat 6G Mission and Bharat 6G Alliance are intended to help India move beyond being a large consumer of telecom technology and become a contributor to global intellectual property, products and affordable communications solutions.

India has set an ambition to deploy 6G technologies domestically by 2030. Technical specifications for the technology are expected to take shape over the coming years, making participation in international discussions particularly important.

The opportunity extends beyond telecom networks. During the G20 Innovation Ministerial, India and the US also discussed cooperation in areas including artificial intelligence, semiconductors and data centres. Prasada also encouraged greater US investment under India’s semiconductor push and discussed strengthening the AI technology partnership between the two countries.

These discussions reflect the broader shift in global technology policy, where telecom infrastructure is increasingly linked with artificial intelligence, semiconductor manufacturing, cloud computing and digital infrastructure.

The G20 Innovation Ministerial concluded with a statement highlighting the potential of emerging technologies to improve productivity, create economic opportunities and support growth. India reaffirmed its interest in building strategic partnerships across AI, semiconductors, digital public infrastructure, robotics and other emerging technologies.

The 6G initiative also gives India an opportunity to participate more closely in conversations around international technology standards. Global standards will play a major role in determining how devices, networks and systems communicate with one another when 6G becomes commercially available.

For Indian technology companies and telecom equipment manufacturers, a stronger role in standards-setting could eventually create opportunities in global markets. It could also support domestic research and development and encourage investment in advanced communications technologies.

The government’s approach reflects a broader ambition to build an ecosystem around emerging technologies rather than simply importing finished systems. This includes developing intellectual property, supporting research institutions and startups, strengthening semiconductor capabilities and expanding domestic telecom manufacturing.

India’s entry into the US-led 6G initiative therefore carries significance beyond the technology itself. It places the country within a group of governments seeking to influence how the next generation of digital connectivity is developed, secured and deployed.

While 6G is still several years away from widespread commercial use, decisions being made today around standards, security, supply chains and interoperability could shape the technology for decades.

For India, being part of these discussions early could help ensure that its interests are considered as the global 6G ecosystem takes shape. It also fits into the country’s larger push to become a technology developer and supplier, rather than remaining primarily a technology market.

The immediate focus will now be on continued international cooperation and technical discussions. As 6G standards gradually develop, India’s participation could determine how effectively it translates its domestic Bharat 6G ambitions into a meaningful role in the global telecommunications industry.

 

Categories
Counterpoint

India’s defence is strong — but not yet deep enough

The next war will not wait for India to complete a tender. It may begin with algorithms scanning satellite images, hackers probing electricity networks and inexpensive drones searching for radars, ammunition depots and command posts.

Precision missiles will follow. Electronic warfare will attempt to blind sensors and corrupt navigation signals, while fabricated videos and automated propaganda seek to confuse the public.

Mass drone warfare has already moved from military theory to battlefield routine. Ukraine and West Asia have shown how relatively cheap unmanned systems can locate artillery, strike armour, harass ships and force an opponent to expend costly missiles. Artificial intelligence increasingly helps identify targets, fuse intelligence, plan logistics and coordinate swarms.

India faces an especially unforgiving strategic landscape: a volatile, nuclear-armed Pakistan to the west; a much larger and technologically formidable China along the northern and eastern frontier; and an Indian Ocean increasingly frequented by extra-regional navies.

The true test of readiness, therefore, extends beyond winning a sharp exchange. India must be capable of sustaining a multi-domain conflict while keeping its ports, power grids, communications, transport networks and economy functioning.

Operation Sindoor offered India its clearest recent preview of technology-intensive warfare.

On the night of 7-8 May 2025, Pakistan attempted to attack military targets across northern and western India with drones and missiles. According to the government’s official account of the operation, India’s Integrated Counter-Unmanned Aerial Systems Grid and layered air defences neutralised the attacks.

Legacy Pechora and OSA-AK systems operated alongside low-level air-defence guns, indigenous Akash missiles, electronic-warfare equipment and newer counter-drone weapons. The Indian Air Force’s Integrated Air Command and Control System connected sensors and shooters across a wide area.

India also used loitering munitions and precision weapons offensively. Its electronic-warfare capabilities helped penetrate or suppress Pakistani defences. Later, the Defence Ministry said the Air Force’s IACCS had worked with the Army’s Akashteer and the Navy’s Trigun to create a unified operational picture.

That performance should inspire confidence but not complacency. A short, controlled confrontation cannot fully simulate a prolonged war involving sustained missile attacks, satellite disruption, cyber sabotage, mounting equipment losses and interrupted foreign supplies.

India has built a formidable first punch and a credible shield. It must now build greater depth behind both.

One of the urgent revisions India needs is to accept that drones are ammunition, not equipment. India’s armed forces have clearly recognised the unmanned revolution. The Air Force’s Mehar Baba competition produced a ₹300-crore order for an Indian swarm-drone system, while the Army had manufactured 819 drones internally by early 2026. The Army has also committed to giving every soldier drone-related training by 2027.

Yet scale changes everything.

India recorded 791 drone intrusions along its international border in 2025, mainly in Punjab and Rajasthan; 237 were neutralised, according to PRS Legislative Research’s defence analysis. Wartime swarms would present a far more demanding challenge.

India needs reconnaissance drones, one-way attack drones, electronic-warfare drones, high-altitude logistics drones, naval unmanned aircraft, unmanned surface vessels and underwater systems in very large numbers. Procurement must treat many of these platforms as rapidly evolving, expendable munitions — not as aircraft expected to remain unchanged for 20 years.

Counter-drone economics matter just as much. Firing a sophisticated surface-to-air missile at every inexpensive quadcopter would soon become unaffordable. India requires layers of jammers, spoofers, automatic cannon, interceptor drones, micro-missiles and directed-energy weapons, reserving costly missiles for the threats that justify them.

Domestic assembly alone will not provide genuine security. Motors, batteries, thermal cameras, secure communication modules, navigation systems, chips and electronic components must remain available when foreign suppliers restrict exports or global supply chains seize up.

Artificial Intelligence must move from demonstrations to doctrine. Indeed, AI should become the nervous system of the armed forces, not another procurement category.

India possesses abundant software talent and has begun developing AI-enabled surveillance, autonomous systems, predictive maintenance and decision-support tools. The Armed Forces’ 2025 technology roadmap explicitly identifies AI, autonomy, hypersonic weapons, space, cyber capabilities and networked warfare as priorities.

The harder task involves deployment at scale. A useful military AI system must work at the edge, with weak connectivity, under electronic attack and amid deliberate deception. It must distinguish a tank from a decoy, recognise manipulated intelligence and continue operating when cloud access disappears.

India should concentrate on five immediate applications: multi-sensor intelligence fusion; drone and counter-drone coordination; cyber-threat detection; predictive maintenance; and logistics forecasting. A common defence-data architecture would allow the three services to train and operate compatible systems without dissolving necessary security boundaries.

Command responsibility must remain unambiguous. AI may recommend, prioritise and warn, but a human chain of accountability should govern lethal decisions. Speed cannot become an excuse for opacity.

Further, India’s air power needs numbers as well as sophistication. The Indian Air Force retired its final MiG-21s in September 2025, leaving it with about 29 fighter squadrons against an authorised strength of 42. Tejas represents a major indigenous achievement, but production delays have widened the gap between retirement and replacement.

India cannot indefinitely compensate for insufficient mass with the quality of its Rafales, upgraded Sukhoi-30MKIs and advanced missiles. Even an exceptional aircraft can fly only one mission at a time. Attrition, maintenance and the demands of two geographically separated fronts quickly consume available strength.

Fighter induction must accelerate, but fighters alone will not solve the problem. India also requires more airborne early-warning aircraft, aerial refuellers, long-range weapons, hardened shelters, rapid runway-repair units, realistic decoys and large stocks of precision munitions. Manned-unmanned teaming should allow fighters to send cheaper autonomous aircraft ahead as sensors, jammers or weapons carriers.

Off India’s long coastline, the undersea contest may decide who rules the waters of the Indian Ocean, the Arabian Sea and the Bay of Bengal. India’s Navy remains the region’s strongest indigenous naval force. Its shipyards now build aircraft carriers, destroyers, frigates, submarines and anti-submarine vessels. Yet the maritime balance is moving quickly.

India operated 137 ships and submarines in 2025, but 53 per cent of its vessels were more than 15 years old. Fifty-eight ships were under construction and another 62 had received approval. China, meanwhile, has been commissioning more than 15 naval vessels annually and regularly sending submarines into the Indian Ocean, according to a parliamentary assessment summarised by PRS.

India needs faster submarine construction, including conventional boats with air-independent propulsion and nuclear-powered attack submarines. It also needs stronger seabed surveillance, maritime patrol aircraft, anti-submarine helicopters, underwater drones, mine-countermeasure vessels and replenishment ships.

The debate over another aircraft carrier should not crowd out these less glamorous capabilities. An adversary’s submarines, long-range missiles and unmanned systems may pose a greater daily threat to sea lanes than its carrier fleet.

Diego Garcia deserves perspective. The atoll hosts a British-American facility that provides logistical support to US forces in the Indian Ocean and Persian Gulf. It is not a Chinese or Pakistani base, and India’s expanding strategic partnership with the United States makes it inaccurate to describe the installation as inherently hostile.

Its existence nevertheless demonstrates the decisive value of distant logistics hubs. Governments and alignments can change. Friends can turn enemies overnight. India must strengthen the Andaman and Nicobar Islands, Lakshadweep, coastal airfields, protected fuel storage and overseas access arrangements so that no external power can dominate its maritime lifelines.

China poses the more direct long-term basing concern. It already operates a military support base in Djibouti, and the US Department of Defense assesses that Beijing has considered additional military access in countries including Pakistan, Bangladesh, Myanmar and Sri Lanka.

Beside the women, men and conventional war machines, a new crop of combatants is fighting today’s battles — satellites, cyber networks and defence manufacturing units.

Modern forces cannot shoot accurately if they cannot see or communicate. India has dedicated military satellites, strong launch capabilities and proven anti-satellite technology. During Operation Sindoor, the ISRO chairman said at least 10 satellites were working continuously for national security.

A small number of valuable satellites, however, can become attractive targets. India needs proliferated constellations, protected communications, rapid replacement launches, alternatives to satellite navigation and the ability to combine military, commercial and allied imagery.

Cyber defence must extend beyond military networks. A successful attack on ports, railways, banks, telecommunications or the electricity grid could slow mobilisation without striking a single military formation. Regular national exercises should test how civilian and military systems operate under simultaneous cyberattack, misinformation and communications failure.

Industrial resilience presents an equally important challenge. India’s defence exports reached a record ₹38,424 crore in 2025-26, rising almost 63 per cent in one year. Indigenous missiles, radars, artillery, naval vessels and electronic systems represent genuine advances.

At the same time, SIPRI ranked India as the world’s second-largest arms importer during 2021-25, accounting for 8.2 per cent of global imports. Russia still supplied 40 per cent of those imports, although India has diversified towards France, Israel and the United States.

An Indian label on a platform means little if its engine, seeker, transmission, semiconductor or critical material becomes unavailable during a crisis. Self-reliance must be measured by the ability to repair, replenish and modify equipment without foreign permission.

Military factories and defence manufacturing lines must also possess surge capacity. A country prepared for 10 days of combat may not remain prepared after 100. India should maintain rotating war reserves, multiple qualified suppliers for critical components and production lines that can expand quickly. Long-term orders would give private companies a commercial reason to invest in capacity before an emergency. For more analysis on defence strategy, industrial capacity and India’s evolving security priorities, explore our CounterPoint section.

The 2026-27 defence allocation reached a record ₹7.85 lakh crore, including ₹2.19 lakh crore under the capital head. Yet the total amounts to about 2 per cent of GDP, below the 3 per cent recommended by a parliamentary committee.

Only 29 per cent of defence expenditure goes towards capital outlay, against a previously recommended 40 per cent. Defence research accounts for an estimated 3.7 per cent of expenditure, down from 4.7 per cent in 2014-15. India’s own Defence Ministry has sought a gradual increase in R&D spending towards 10 per cent over the next decade.

More money will not automatically create readiness. Stable priorities, competitive development, realistic testing and faster decisions matter just as much. India’s procurement system must accept iterative improvement instead of waiting endlessly for a perfect indigenous system—or importing one after domestic delays become intolerable.

Jointness completes the equation. Operation Sindoor showed what integrated sensors and command networks can achieve. The next step must connect planning, logistics, airspace management, cyber operations, intelligence and long-range targeting across all three services. Organisational boundaries cannot be allowed to slow a kill chain that operates in seconds.

So, is India ready?

India can defend vital targets, impose serious costs and respond with precision. Few adversaries could treat its military power lightly. But prolonged, simultaneous conflict across two land fronts and the Indian Ocean—conducted under cyberattack, satellite disruption and supply-chain pressure—would expose important shortages.

Five priorities demand urgency: expendable drones and economical counter-drone systems; greater combat-air mass and its supporting enablers; undersea and anti-submarine power; resilient space and cyber networks; and an indigenous industrial base capable of replenishing losses at wartime speed.

India has fashioned an increasingly sharp spear. It now needs a much larger quiver, a more resilient shield and the industrial workshop capable of replacing both while the battle continues.

Categories
Technology

Airtel replaces ₹299 pack with costlier recharges

Bharti Airtel has removed four prepaid recharge plans from its portfolio, including the widely used ₹299 pack, giving customers fewer low-cost choices and potentially paving the way for higher revenue per user.

The telecom company discontinued the ₹299, ₹579, ₹619 and ₹649 prepaid plans from August 12. The changes have triggered fresh speculation about a wider Airtel tariff hike, although the company has not announced any blanket increase in prepaid prices.

The ₹299 recharge has attracted the most attention because it was a popular entry-level plan offering daily data. It provided 1.5GB of data per day, unlimited calling and 100 SMS messages per day for 28 days.

With that option gone, customers wanting a similar daily-data plan are being pushed towards the ₹349 pack. The replacement costs ₹50 more, translating into a 16% increase at that price point. The ₹349 plan, however, offers 2GB of daily data, giving customers more data for the higher price.

The change means Airtel has effectively increased the minimum amount some customers need to spend for an unlimited calling plan with daily data.

But the company has not removed all affordable recharge options. The ₹199 and ₹219 plans remain available, although they provide smaller total data allowances rather than the daily-data structure that made the ₹299 pack attractive to many users. Customers who use mobile data heavily may therefore find the ₹349 plan more relevant.

The withdrawal of the four plans is also important from an investor perspective. Average revenue per user, or ARPU, is one of the most closely watched indicators for telecom companies because it shows how much revenue an operator generates from each subscriber.

JM Financial expects Airtel’s wireless ARPU to rise by around 2% as a result of the latest plan changes. The brokerage estimates that about 10% of subscribers could shift to plans costing approximately ₹50 more. Such migration would allow Airtel to earn more from its existing customer base without necessarily adding a large number of new subscribers.

The brokerage’s assessment highlights the larger significance of Airtel’s decision. The company is not simply removing a few recharge plans; it is attempting to reshape its prepaid pricing strategy.

Telecom companies have increasingly focused on monetising data consumption as smartphone users consume more streaming video, social media and other online services. At the same time, operators need higher returns to fund investments in 5G networks and other infrastructure.

Airtel’s approach could also become a template for the wider industry. If customers accept higher-priced alternatives without significantly switching operators, rivals such as Reliance Jio and Vodafone Idea could have greater room to rationalise their own prepaid plans.

However, analysts caution that the latest Airtel move should not automatically be described as a full-fledged tariff hike. India Today reported that the operator has made changes to selected plans rather than increasing prices across its entire prepaid portfolio.

There are also reports that the availability of some Airtel plans differs between telecom circles. This means customers may see different recharge options depending on their location and mobile number. Airtel’s own recharge platform allows users to check the plans available to them before making a payment.

Categories
Beyond

India’s ethanol push crosses 800 cr litres

India’s ethanol programme has crossed a significant milestone, with cumulative supplies exceeding 800 crore litres during Ethanol Supply Year (ESY) 2025-26. The latest data from the All India Distillers’ Association (AIDA) also shows a clear change in the country’s ethanol supply mix, with grain-based feedstocks taking a much larger role than sugarcane.

The milestone comes as India pushes ahead with its ethanol blending programme, aimed at reducing dependence on imported crude oil, improving energy security and creating an additional market for agricultural produce. But the industry is now confronting a different problem: ensuring that the rapidly expanding ethanol supply is matched by sufficient demand.

According to AIDA data, ethanol supplies during July stood at 93 crore litres, taking cumulative supplies for ESY 2025-26 beyond the 800-crore-litre mark. Grain-based ethanol accounted for about 71 crore litres, or 76% of July supplies. The share was higher than the approximately 73% recorded in June, even though total monthly supplies were lower in July.

The shift is important because ethanol production in India has traditionally been closely linked to the sugar industry. Increasing use of grains means the country is building a more diversified feedstock base, reducing its dependence on sugarcane and giving distilleries greater flexibility in sourcing raw material.

Maize and surplus Food Corporation of India (FCI) grains have emerged as important contributors to this transition. Data reported from AIDA shows that maize and surplus FCI grains each contributed around 30 crore litres to July’s grain-based ethanol supplies.

This change also comes at a time when the economics of sugar and ethanol are shifting. India is dealing with concerns over sugar availability and prices after weaker rainfall in key producing states. The government is considering changes to the use of sugarcane for ethanol in the next supply year, potentially encouraging greater use of maize and rice-based feedstocks instead.

The development could make grain-based ethanol even more important for the country’s E20 blending target. India has already moved towards petrol containing up to 20% ethanol, creating a large and assured market for biofuel producers. The broader objective is to replace a portion of petrol consumption with domestically produced ethanol.

The expansion of grain-based ethanol also has implications for farmers. Maize has become an increasingly important feedstock, creating an additional source of demand beyond traditional uses such as animal feed and food processing. A diversified ethanol market can therefore provide farmers with another avenue to sell their produce.

However, higher production capacity by itself does not guarantee that the industry will remain profitable. The next challenge is demand. As ethanol availability rises, oil marketing companies and other potential users need to absorb the additional volumes. The Times of India report highlights this emerging gap between the industry’s ability to produce ethanol and the pace at which demand is developing.

That issue could become more important as India continues adding distillation capacity. If production grows faster than procurement and blending requirements, producers could face pressure on utilisation levels and margins. For the government, maintaining a predictable procurement framework will therefore be important to keep investment flowing into the sector.

The changing feedstock pattern also offers some protection against supply shocks. In June, grain-based ethanol accounted for roughly 75% of supplies, with 75 crore litres supplied from grains out of total monthly supplies of 103 crore litres. By July, grain-based supplies remained dominant at 71 crore litres out of 93 crore litres.

Earlier AIDA data had already shown the growing importance of grains. By June, cumulative ethanol supplies had reached 717 crore litres, against contracted volumes of 1,048 crore litres. Grain-based ethanol accounted for 480 crore litres, or nearly 67% of total supplies at that stage, while sugarcane-based sources contributed 238 crore litres.

The numbers indicate how quickly India’s ethanol supply chain has evolved. Maize has moved to the centre of the biofuel ecosystem, while surplus food grains and sugar-based feedstocks continue to provide additional sources.

For the government, the programme serves several objectives at once. Higher ethanol blending can help reduce petrol imports, strengthen energy security and support agricultural markets. For sugar mills and distilleries, ethanol offers an alternative revenue stream, while grain-based production creates demand for crops such as maize.

The 800-crore-litre milestone therefore represents more than a production figure. It shows that India has built significant capacity to supply ethanol at scale. The bigger test now is whether consumption, blending and procurement can keep pace with that capacity.

 

Categories
Technology

Chinese phone brands lose ground in India

India’s smartphone market took a sharp hit in the April-June quarter of 2026 as a global memory chip shortage pushed up handset prices and weakened demand, particularly among budget-conscious consumers. Smartphone shipments in the country fell 11.1% year-on-year to 33.2 million units in the second quarter, according to the latest data from the International Data Corporation (IDC).

The downturn has been particularly painful for Chinese smartphone brands, which have traditionally relied on affordable and feature-rich devices to build a strong presence in India. Vivo, Oppo, Xiaomi and Realme all reported shipment declines during the quarter, while Samsung and Apple managed to hold their ground and increase their market shares.

The numbers show how quickly rising component costs are changing India’s smartphone market. IDC said the average selling price (ASP) of smartphones in India climbed 14.4% year-on-year to a record $315, or roughly ₹30,000, in Q2 2026. Higher memory costs have made it increasingly difficult for manufacturers to keep prices low while protecting their profit margins.

That pressure has been felt most strongly at the bottom end of the market. Smartphones priced below $100 saw shipments plunge 74.3% year-on-year, with their share of the overall market falling from 15.6% to just 4.5%. Manufacturers have reduced model launches and channel support in this segment as low prices have become harder to sustain amid expensive components.

For years, Chinese companies built their Indian businesses around precisely this part of the market. Their ability to offer large displays, better cameras and other features at competitive prices helped brands such as Vivo, Oppo, Xiaomi and Realme become household names. But the current memory shortage has weakened that advantage because the room to absorb higher costs or offer aggressive discounts has narrowed considerably.

Vivo remained India’s largest smartphone brand in Q2 with an 18.4% market share, down from 19% a year earlier. Its shipments declined by about 14% year-on-year. Oppo, which ranked third, recorded an 8.5% decline, while Xiaomi’s shipments dropped 10%. Realme suffered a larger 14.2% fall.

The sharper declines were visible among some Chinese sub-brands. Vivo’s iQOO recorded the steepest fall among the leading brands, with shipments dropping 61% year-on-year. Xiaomi’s Poco shipments fell 12.3%, while OnePlus recorded a smaller 2.5% decline. Motorola, which is not a Chinese brand, also saw shipments fall 8.9%.

Samsung, meanwhile, gained ground in a shrinking market. Its shipments grew 0.4%, but its market share increased from 14.5% in Q2 last year to 16.4% this year. Samsung’s broad portfolio and scale have helped it absorb some of the impact of rising component costs while continuing to serve different price segments.

Apple also strengthened its position. Its shipments increased about 0.7%, while its market share rose from 7.5% to 8.5%. The company remained constrained by supply shortages affecting the iPhone 15, iPhone 16 and iPhone 17 series, but demand for premium devices remained more resilient than demand at the entry level. The iPhone 17 was the highest-shipped smartphone model in India during the first half of 2026, according to IDC.

The shift suggests that India‘s smartphone consumers are gradually moving up the price ladder, even as overall volumes decline. The $400-$600 segment grew 60.3% year-on-year, with its market share almost doubling from 4.8% to 8.6%. Meanwhile, the $100-$200 mass-budget segment remained the largest category, accounting for 46.8% of the market and recording broadly flat shipments.

There was also an unusual revival in demand for 4G smartphones. As entry-level 5G devices became more expensive, some manufacturers brought back or extended 4G models to give consumers cheaper options. The share of 4G smartphones rose to 11.1%. IDC, however, expects this to be a temporary development as existing inventories run out and consumers are pushed towards more expensive 5G models.

The change in consumer behaviour is also visible in sales channels. Online smartphone shipments fell 19.8% year-on-year, with their share dropping from 46.4% to 41.9%. Online platforms traditionally depend heavily on discounts and promotional offers, but weaker discounts have made them less attractive to price-sensitive buyers. Offline shipments were comparatively resilient, declining only 3.6% as brands leaned more heavily on physical retail networks.

The weakness is not limited to one quarter. India’s smartphone shipments during the first six months of 2026 fell 7.9% year-on-year to 64.2 million units, the lowest first-half volume in five years. Interestingly, the market’s overall value still increased 3.6%, reflecting the rise in average selling prices and the growing contribution of premium smartphones, a shift that is also shaping India’s broader technology market.

The upcoming festive season could therefore be a crucial test for smartphone manufacturers. Traditionally, brands use festive discounts, exchange offers and financing schemes to encourage upgrades. This year, however, higher component costs are leaving manufacturers and retailers with less room for aggressive price cuts.

 

Categories
Beyond

Airport Operators can own airlines, centre clarifies

The Centre has clarified that there is no government policy that generally prevents airport operators from owning or running scheduled airlines, potentially opening a new route for investment in India’s aviation sector. However, existing contractual restrictions at some airports could still prevent operators from taking significant stakes in airlines without obtaining a waiver.

The clarification came from the Ministry of Civil Aviation amid growing attention on the relationship between airport operators and airline ownership. The government said airport operators are not barred under a blanket policy from holding substantial equity in airlines or operating scheduled carriers.

The distinction is important because restrictions can arise not from a central aviation policy but from individual agreements signed when airports were handed over for private operation under public-private partnership arrangements.

The Airports Authority of India has received a request seeking a waiver from such contractual restrictions. The request relates to provisions that can restrict airport operators from holding stakes in airlines or entering the airline business. The Ministry of Civil Aviation has not yet taken a final decision on the request.

The development could have wider implications for India’s aviation industry, where airport infrastructure and airline operations have traditionally remained separate businesses in several major markets. Allowing greater cross-holding could encourage large airport operators to explore airline investments, partnerships or even the launch of their own carriers.

For passengers, the change could eventually bring more airline choices and potentially greater competition. But it also raises questions about conflicts of interest because an airport operator that owns an airline could have influence over infrastructure, airport charges, slots, passenger facilities and other services used by competing carriers.

These concerns are particularly relevant at busy airports where landing capacity and terminal infrastructure are limited. Airlines compete not only on fares and routes but also for access to airport slots, parking bays, gates and other facilities. An airport operator with an airline interest could therefore face scrutiny over whether competing carriers receive equal treatment.

The government’s latest clarification does not mean that airport operators can immediately start or acquire airlines without restrictions. Any operator covered by a specific contractual agreement would still have to comply with those terms unless the relevant restriction is formally relaxed or waived.

This distinction between policy and contract is at the heart of the current issue. While there is no broad government prohibition on airport-airline ownership, contractual clauses in some airport concession arrangements can impose limits on cross-holding.

The waiver request before the Airports Authority of India is therefore significant. A decision to relax such restrictions could establish an important precedent for airport operators seeking to expand into passenger aviation.

India’s airport sector has undergone major changes over the past decade, with private companies taking a larger role in developing and operating airports. The country has also seen strong growth in domestic air travel, increasing the commercial importance of airport infrastructure and airline networks.

The airline market, meanwhile, is going through its own period of consolidation and expansion. The recent changes in the industry have increased attention on competition, capacity and the need for more carriers. Any move that allows airport operators to enter the airline business could alter the competitive landscape further.

For airport companies, owning an airline could create opportunities to integrate different parts of the aviation business. A group operating both airports and airlines could coordinate schedules, route development, passenger services and infrastructure investment more closely.

There could also be commercial advantages. An airline owned by an airport operator could potentially help increase traffic at its airports by developing new routes and adding capacity on underserved sectors. Higher passenger traffic, in turn, could benefit airport revenues from aeronautical and non-aeronautical activities.

However, regulators would need to ensure that such integration does not weaken competition. Rival airlines would need transparent access to airport infrastructure and commercially important facilities. Rules governing airport charges, slots and other services would become even more important if an airport operator also became an airline owner.

The issue also comes at a time when policymakers are looking for ways to strengthen competition in Indian aviation. A market dominated by a small number of large airlines can create concerns about fares, capacity and consumer choice, particularly when disruptions affect a major carrier.

Allowing new players backed by airport operators could provide additional capital to the sector. It could also attract companies with experience in large-scale infrastructure, logistics and passenger services into airline operations.

However, the government has not approved a general relaxation of airport-airline cross-holding restrictions. The immediate issue is whether existing contractual provisions can be waived in specific cases.

The decision will be closely watched by the aviation industry because it could determine how easily airport operators can enter India’s airline market.

Categories
Beyond

FSSAI seizes 18,000 Diageo liquor boxes in Bengaluru

The Food Safety and Standards Authority of India (FSSAI) has seized around 18,000 boxes of liquor bottles from a United Spirits facility in Bengaluru, citing concerns over mandatory markings on bottles made with recycled plastic.

The action affects products from several Diageo India brands, including DSP Black Deluxe Whisky, Smirnoff Zesty Lime Triple Distilled Flavoured Vodka and VAT 69 blended Scotch whisky. The seized products and related plastic material have been valued at about $1.6 million, according to government documents.

The seizure followed an inspection at the United Spirits facility in Bengaluru last week. Officials found that certain plastic bottles carried markings indicating that they were made from polyethylene terephthalate, or PET, but did not display the required symbol identifying recycled PET that meets food-grade standards.

PET is a widely used plastic for packaging beverages and other consumer products. Recycled PET, commonly known as rPET, can be used in packaging when it meets prescribed safety and quality requirements. The labelling requirements are intended to help establish that packaging materials comply with food-contact standards.

The issue in the Bengaluru inspection was therefore related to packaging compliance and labelling rather than an allegation that the liquor itself was contaminated. FSSAI treated the missing markings as a food-safety and misbranding concern and ordered the affected products to be taken off the market pending further directions.

United Spirits, which operates Diageo’s business in India, has said the bottles were sourced from a recycler approved by FSSAI and that the required tests had been conducted by suppliers. The company has maintained that its products are safe for consumption and is engaging with the regulator over the matter.

The development has brought renewed attention to the importance of packaging regulations in India’s food and beverage industry. While consumers usually focus on ingredients, quality and product labels, regulators also monitor the materials that come into contact with food and beverages.

The FSSAI action is particularly significant because the affected bottles are smaller plastic packs, generally used for liquor sold in quantities such as 180 millilitres. Most larger bottles used by Diageo are made of glass, meaning the regulatory action is concentrated on a specific category of packaging.

The seizure also comes amid increased scrutiny of the alcoholic beverages sector. Regulators have recently taken action over product labelling, claims about maturation and the use of artificial flavours in certain alcoholic drinks.

That wider enforcement campaign has placed Indian Made Foreign Liquor, or IMFL, brands under closer examination. IMFL refers to spirits manufactured in India that are based on internationally recognised categories such as whisky, vodka, rum and gin.

The latest action highlights how compliance requirements extend beyond the contents of a bottle. Companies must also meet rules covering packaging materials, labelling, manufacturing processes and claims made on products.

The episode adds to a period of increased regulatory attention. The company is one of the biggest international spirits businesses operating in the country, with brands across whisky, vodka, rum and other categories.

Diageo has identified India as an important growth market. United Spirits reported revenue of roughly $3 billion from India in the financial year ended March 2026, underlining the country’s significance to the company’s global business.

The financial impact of the latest seizure could extend beyond the value of the products placed under regulatory hold. Depending on the final findings, the company may need to address packaging, labelling or distribution issues before affected products can return to the market.

The seizure does not mean that all Diageo products have been declared unsafe. The regulatory action concerns specific products and packaging identified during the Bengaluru inspection. The company has also stated that the affected bottles came from an approved recycler and underwent testing.

The case now depends on the regulator’s assessment and any further directions issued to United Spirits. Additional testing, documentation or corrective measures could be required before the affected stock is released.

Recycled PET has become increasingly important as businesses face pressure to reduce plastic waste and improve packaging sustainability. At the same time, food-contact packaging must meet strict safety standards because materials can potentially affect the products they contain if they are not properly manufactured or processed.

That makes accurate labelling an important part of the regulatory framework. Markings allow authorities and other stakeholders to identify the type and intended use of packaging material and determine whether it complies with applicable standards.

The development is also likely to keep attention on packaging compliance across India‘s alcohol industry. With regulators increasing inspections and enforcement, manufacturers and distributors may face greater scrutiny of both product claims and packaging practices.