The Economic Times

India's Credit-Deposit ratio has risen significantly, indicating robust financial development and economic growth. Banks have demonstrated a strong recovery post-pandemic, with asset growth rebounding sharply. Deposits and advances have expanded considerably over two decades. Public Sector Banks are regaining market share, reflecting renewed lending appetite. Banking employment has nearly doubled, with a shift towards higher-value roles.

TVK chief Vijay arrived in Delhi to appear before the CBI for questioning in connection with the Karur stampede case. He is cooperating with the investigation, which began after the Supreme Court ordered the CBI to take over the case from an SIT.

Israel is closely watching for any United States intervention in Iran. This comes as Iran faces its largest anti-government protests in years. President Donald Trump has repeatedly warned Iran against using force. He stated the US is ready to help. Israeli Prime Minister Benjamin Netanyahu discussed the possibility of US intervention with US Secretary of State Marco Rubio.

Renewable energy projects in Rajasthan are experiencing significant power curtailments. Over 4 GW of capacity faces near-total shutdowns during peak solar hours. This issue persists despite the recent commissioning of the Khetri-Narela transmission line. Developers warn of risks to project viability and India's 2030 renewable energy goals. Authorities are exploring solutions to improve evacuation capacity.

Goa saw a record 1.08 crore tourist arrivals in 2025, with over five lakh foreigners visiting. This surge highlights the state's successful tourism promotion and diversification strategies. The government's focus on quality and regenerative tourism is yielding positive results. Both domestic and international tourist numbers have shown significant growth, indicating a strong recovery and enhanced connectivity.

The FIFA World Cup trophy has arrived in India as part of its global tour for the 2026 tournament. The original trophy was unveiled in Delhi, with a Brazilian football legend present. This visit, after 12 years, aims to inspire Indian youth to embrace football. The trophy will tour Delhi and Guwahati.

India's record rice harvest is flooding the global market, pressuring prices as demand weakens and key buyers impose stricter import rules. Farmers may face significant rate cuts to compete with rivals like Thailand and Vietnam. Analysts predict a potential drop of $15 to $25 per ton by spring due to a lack of immediate African and Middle Eastern interest.

Weather Report Today: While dense fog and cold wave conditions are likely to continue in north and east India, the IMD has warned of heavy rainfall in Tamil Nadu and Chennai for January 10. Under the influence of deep depression over Bay of Bengal, most coastal areas of Tamil Nadu are likely to get moderate to heavy rainfall.

A think tank argues that trade deals hinge on policy alignment, not leader calls. This challenges US Commerce Secretary Howard Lutnick's claim that the India-US trade agreement stalled due to a missed phone call. GTRI asserts that complex negotiations break down over substantive issues like tariffs and market access. The trade impasse reflects hard policy choices, not symbolic gestures.

U.S. Treasury Secretary Scott Bessent said the Treasury has enough funds to cover any refunds if the Supreme Court rules against President Trumps emergency tariffs, though repayments could take weeks or even a year.

The central bank has introduced initiatives such as MuleHunter.ai to combat mule accounts used for fraudulent transactions. The AI tool delivers high accuracy and precision with significantly low false-positive rates and is currently deployed across 20 commercial banks.

India apparel exports: The industry is already under pressure after the US imposed 50% tariffs on India last August, marked by deep discounts, diversion of idle capacity to domestic brands and rerouting of export orders through neighbouring countries.

Delivering the first Bibek Debroy Memorial Lecture on the them Indian Economy: A Story of Rising Credibility, Shaktikanta Das, principal secretary 2 to prime minister, said the global economy is at an inflection point, with geopolitical rivalries, protectionist trade policies and weakening multilateral institutions reshaping cross-border commerce and investment flows.

T Rabi Sankar said collaboration between banks and central bank owned Reserve Bank Innovation Hub (RBIH) will both quicken and enhance the capability of these risk mechanisms.

India is shifting its focus towards generating skilled employment and improving job quality, an essential step for sustainable economic development. With a target growth rate of 7.7 percent from 2022-23 to 2025-26, the nation envisions a future where investments, domestic savings, and exports flourish. Emphasizing the manufacturing sector is seen as key to creating more labor-intensive job opportunities.

India has firmly countered the statements made by US Commerce Secretary Howard Lutnick regarding stalled trade discussions. Officials affirmed that Prime Minister Modi and President Trump are in regular communication, with the Ministry of External Affairs underscoring ongoing high-level interactions.

Bangladesh has halted new onion import permits from India, prioritizing domestic farmers. While 10 lakh tonnes are exported to Bangladesh, Indian onions remain sought after globally. Imports under existing permits will proceed until January 30, as Indian exporters seek government subsidies to compete internationally.

RBI Monetary Policy Committee 2026: PwC expert Ranen Banerjee advises the Reserve Bank of India against cutting interest rates. He believes a rate cut now would be a wasted opportunity. Growth is strong and inflation is under control. The Monetary Policy Committee is unlikely to change rates in its upcoming February 2026 meeting. Private investment is not currently driven by interest rates.

India and the European Union are in talks for a Free Trade Agreement. Discussions focus on a modern economic partnership. Both sides aim to safeguard farmers and MSMEs. Negotiations are ongoing to bridge differences. The goal is to conclude the talks soon. This pact could boost Indian exports to the EU market.

Budget 2026: With the FY2027 Union Budget looming, there lies a crucial opportunity for the government to concentrate on amplifying domestic potential and fostering growth. Elevating capital expenditure is key to improving infrastructure and spurring private investments. A renewed spotlight on production-linked incentive schemes can galvanise the National Manufacturing Mission, serving as a lifeline for MSMEs and innovative startups.

Protests are sweeping across Iran, fueled by economic hardship and a deep disconnect between the rulers and the youth. Young men are now at the forefront, expressing anger over regional policies and demanding a peaceful life. The regime faces a significant challenge to its authority, with analysts suggesting change is inevitable.

US Commerce Secretary Howard Lutnick claimed that a stalled India-US trade deal was due to Prime Minister Narendra Modi not calling President Donald Trump. Lutnick stated the deal required leader-to-leader political signaling, which did not occur, leading to India's discomfort and the lack of a call.

CVC has an exclusivity agreement with ValueLabs, founded in 1997 by Arjun Rao Donakanti (87% owner). Promoters may retain 1520% and management will continue running the firm.

The Capex for the month of December alone increased by 9.28% to Rs 70,000 crore, with many enterprises exceeding their annual budget target. The growth was led by the Railway board and National Highway Authority of India(NHAI) as they remained the highest spenders.

The step-up was triggered after Goswami Infratech, a borrower linked to the structure, did not complete a refinancing by December end, said the people cited above. Although not a covenant breach, the delay requires existing borrowings to be repriced if fresh debt was raised at a higher cost.

Most large life insurers, including LIC, HDFC Life, Axis Max and SBI Life, are set to post double-digit APE growth in OctDec 2025, aided by GST tailwinds and a favourable base after new surrender value norms.

The bank is considering increasing its board strength to around a dozen members from the current nine with the aim of strengthening oversight and aligning with evolving regulatory expectations. Currently, managing director and CEO Rajiv Anand is the only executive on the board. Others are non-executive and independent directors.

NBFCs' share of aggregate gold loans fell by nearly 20 percentage points over the past five years to 50.3% as of March 2025, from 69.4% in 2020. In the same period, banks increased their share to 49.7% from 30.6%, data showed.

Torrent Power operates across the entire power value chain-coal-based and gas-based generation, renewables, transmission and distribution. We are also expanding into energy storage and green hydrogen. Importantly, every segment of the value chain is seeing growth today, giving us multiple growth engines and a balanced portfolio, says Jinal Mehta.

The Reserve Bank of India is exploring new measures to aid Indian exporters facing U.S. tariffs. A previous loan repayment moratorium saw limited participation. The central bank is now considering easing eligibility for the moratorium or offering fresh subsidized loans. Discussions are ongoing with export agencies to assess future order flows before finalizing new support.

Union Budget: Policy and regulatory support helped boost consumption in 2025, reflected in strong GST collections and higher retail credit, aided by income tax relief, GST rate rationalisation and a cumulative 125-basis-point repo rate cut by the RBI. Retail lending led credit growth, while bank credit is expected to grow 1112% and NBFC/HFC lending 1819% this fiscal. However, weak deposit mobilisation and sluggish private investment remain concerns.

According to the report, the first advance estimate (AE) released by the National Statistical Office pegs GDP growth at 7.4 per cent in FY26, compared to 6.5 per cent in FY25. Gross Value Added (GVA) growth is estimated at 7.3 per cent, while nominal GDP growth is projected at 8 per cent.

Punjab National Bank is selling bad loans exceeding 760 crore, including significant exposures to Gammon India and Simbhaoli Sugars. This follows a larger sale attempt last week of 2,500 crore in non-performing assets. The bank aims to recover at least 40-50% of the identified 4,000-5,000 crore in bad loans.

India's natural mentha oil industry faces a crisis. Exports and production have fallen significantly. Synthetic mint, a cheaper lab-grown alternative, is flooding markets. Farmers are shifting to other crops as demand for natural mentha wanes. Bulk buyers now prefer the synthetic version for its consistent quality and lower cost. This trend threatens the future of India's natural mint farming.

In an unprecedented move, India has brought in three million cotton bales during the December quarter, spurred by a newly established duty-free window. This influx can be attributed to declining domestic yields and crop damage affecting quality. With projections indicating sustained high imports through FY26, mills have fortified their inventories of cotton, securing supplies until May or June.

India aims to be the world's third-largest economy. Minister Nitin Gadkari stated this requires reducing imports and boosting exports. He highlighted converting agricultural waste into a national resource. This process can cut pollution from crop burning. It also strengthens the circular economy. Blending 15% with agro-waste can save foreign exchange. This will significantly reduce dependence on imported crude oil.

The Indian leather industry met with a Parliamentary Standing Committee on Commerce, highlighting that 50% US tariffs are significantly harming exports and impacting the sector's competitiveness. They urged for bilateral engagements to address trade barriers and requested policy and diplomatic support to mitigate socio-economic consequences.

Intel stock today: Intel shares surged over nine percent on Wednesday. Investor confidence is rising due to gaming innovation and AI momentum. Intel is targeting the handheld gaming market with new Panther Lake processors. This chip is built on Intel's advanced 18A process. A partnership with Nvidia strengthens Intel's AI server strategy.

Commerce Minister Piyush Goyal urged Liechtenstein companies to invest in India, leveraging the India-EFTA trade pact for expansion. He highlighted India's scale, talent, and manufacturing depth, complementing Liechtenstein's specialized industrial and financial expertise. The minister encouraged collaboration to build resilient value chains and a reliable investment bridge in a volatile global environment.

India anticipates robust economic growth of 7.4% in fiscal 2025-26. This projection highlights the nation's economic strength despite global challenges. The government's initiatives, including tax relief and GST adjustments, are expected to boost consumer demand. Manufacturing and services sectors are poised for significant expansion, positioning India as a leading economy in Asia.

Budget session: The government plans to introduce the Seeds Bill 2025 in Parliament in February. This new bill will replace the old Seeds Act of 1966. It aims to ensure seed quality and traceability through mandatory registration. Farmers will still be able to save and exchange their own seeds. The bill also outlines penalties for violations.

India's government has requested average fare data from major airlines, including IndiGo, Air India, and SpiceJet, for the first half of December. This move by the Directorate General of Civil Aviation comes as antitrust authorities investigate unprecedented travel disruptions and fare surges caused by IndiGo's flight cancellations due to pilot shortages.

In its report on A Comprehensive Framework to Promote Affordable Housing, developed jointly with the ministry of housing and urban affairs, the Aayog has proposed a slew of incentives for developers and buyers of affordable houses, including reintroduction of the provision of 100% tax exemption to developers involved in approved affordable housing projects and doubling of loan limit to Rs 40 lakh under the Credit Risk Guarantee Fund Scheme for Low Income Housing.

India is strengthening domestic manufacturing and securing supply chains. The upcoming union budget will fund local production and build strategic buffers. This shift prioritizes economic resilience over cost efficiency. The nation aims to reduce reliance on imported energy, electronics, and defence equipment. Diversifying oil supplies and boosting local defence production are key strategies.

India is a major consumer of finished silver, importing billions of dollars worth annually. Experts urge India to shift from importing refined silver to processing it domestically. This involves securing long-term mining supplies from abroad and enhancing local refining and recycling capabilities. Such a strategy will reduce import dependence and boost value addition within India.

Nvidia chief Jensen Huang views robots as AI immigrants. He believes they will solve global labor shortages and boost manufacturing. Huang stated that robots will create jobs, not replace humans. He highlighted demographic shifts causing worker scarcity. Nvidia is investing in software to enable robots across industries.

Fast-moving consumer goods consumption is set for a 5% growth in early 2026. Strong economic indicators and rising demand are driving this positive outlook. Consumers are expected to shop more and opt for premium products as prices stabilize. Leading companies like Marico and Dabur are already seeing early signs of recovery.

India's services sector saw a slowdown in December 2025, reaching an 11-month low. New business and output growth moderated. Companies also held back on hiring additional staff. Manufacturing activity also slackened. The overall composite index fell. Firms remain optimistic for 2026, but sentiment dipped due to market uncertainty and exchange rate concerns. Export orders strengthened.

The Insolvency Bankruptcy Board of India has introduced new electronic forms for liquidation processes. These revised forms aim to simplify compliance for insolvency professionals and enhance the accuracy of regulatory submissions. The changes will streamline data requirements and utilize technology for auto-population. Four forms, LIQ-1 to LIQ-4, will cover the entire liquidation journey.

New Zealand and India have concluded a Free Trade Agreement. This pact is set to boost exports and create jobs for New Zealand. The deal aims to enhance market access and promote investment. It is expected to take effect in seven to eight months. This agreement signifies a significant step in strengthening bilateral economic ties between the two nations.