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Sunday, August 16, 2026 11:24 AM

Indian Economy

N Chandrasekaran to Step Down as Tata Sons Chairman After Term Ends

N Chandrasekaran, chairman of Tata Sons, has announced that he will not seek another term when his current tenure ends in February 2027, bringing uncertainty over the future leadership of one of India’s largest business conglomerates. The 63-year-old executive said the decision followed the Tata Sons board’s failure to reach unanimous agreement on a proposed five-year extension. The proposal was first discussed in February, but no consensus was reached even after six months. The announcement triggered a sharp reaction in the stock market, with shares of several listed Tata Group companies falling, while investors assessed the potential implications for the conglomerate, which has interests ranging from Air India and Tata Steel to Jaguar Land Rover and Tata Consultancy Services. Chandrasekaran’s decision comes amid reported differences within the Tata Group’s governance structure. Tata Trusts, the charitable arm of the group, holds a 66% stake in Tata Sons and has three nominees on its board. Reports have pointed to disagreements over board appointments, funding decisions and the potential public listing of Tata Sons. The leadership uncertainty comes as the group navigates several major business priorities, including the ongoing turnaround of Air India, which Tata Group acquired from the Indian government in 2022, as well as other large strategic projects. Chandrasekaran said that with several critical initiatives underway, establishing clarity over leadership beyond February 2027 was important for employees, investors, business partners and other stakeholders. He became Tata Group chairman in 2017, succeeding Cyrus Mistry following Mistry’s controversial removal and the subsequent legal dispute. Prior to taking charge of the group, Chandrasekaran served as CEO and managing director of Tata Consultancy Services, where he had built a long career after joining the Tata Group in 1987. Market analyst Ambareesh Baliga said the departure of a leader of Chandrasekaran’s stature was bound to weigh on investor sentiment. However, he noted that the group has around six months to identify a successor and suggested that the next chairman could potentially emerge from within the Tata Group. Source: BBC

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Rajnath Singh Highlights Economic Strength as Key Driver of India’s Defence Growth at Vibrant Gujarat Summit

Union Defence Minister Rajnath Singh has underscored the critical connection between economic strength and national security, stating that a strong economy is the backbone of a nation’s defence capabilities. Speaking at the valedictory session of the Vibrant Gujarat Regional Conference in Vadodara, he said India’s growing industrial capacity is paving the way for greater self-reliance in the defence sector. Highlighting Gujarat’s industrial potential, Singh expressed confidence that the state is well-positioned to become a global centre for defence manufacturing, driven by its expanding footprint in sectors such as chemicals, electronics, shipbuilding, and renewable energy. He pointed to India’s remarkable progress in indigenous defence production, noting that the country’s domestic defence manufacturing output has risen sharply from ₹46,000 crore in 2014 to nearly ₹1.78 lakh crore today, reflecting the government’s continued push towards strengthening the country’s self-sufficiency in strategic sectors. Singh also highlighted Vadodara’s growing significance in India’s aerospace ecosystem, mentioning the establishment of the country’s first private-sector military aircraft manufacturing facility, where Tata Group and Airbus are jointly producing the Airbus C-295 transport aircraft — a milestone development for India’s defence manufacturing ambitions. Meanwhile, Gujarat Chief Minister Bhupendra Patel announced that agreements worth ₹3.34 lakh crore were signed during the two-day summit. These investments are expected to create over 1.97 lakh employment opportunities, providing a major boost to the region’s economic growth and industrial development in the near future. Source: News on AIR

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India Crosses $860 Billion Export Milestone in FY 2025–26: Govt Highlights Resilience Amid Global Challenges

India has recorded its highest-ever export performance, reaching an impressive $860 billion in the financial year 2025–26, according to Union Commerce and Industry Minister Piyush Goyal. Sharing the update on social media, the minister emphasized that the achievement reflects India’s economic resilience and its expanding footprint in global trade despite ongoing international uncertainties. He noted that the momentum has been significantly supported by nine trade agreements finalized under the leadership of Prime Minister Narendra Modi. These agreements are helping India access new markets and unlock growth opportunities across multiple sectors. Goyal further highlighted that continued government efforts to improve ease of doing business and foster an investor-friendly ecosystem are playing a crucial role in driving export growth, aligning with the broader vision of building a “Viksit Bharat.” Welcoming the development, ASSOCHAM President Nirmal Minda described the milestone as a testament to India’s strong economic fundamentals amid global headwinds. He pointed out that the growth has been largely driven by services exports, along with strong contributions from sectors such as engineering and electronics. Minda added that the performance underscores the effectiveness of policy measures and industry collaboration, boosting confidence in India’s export trajectory. He also expressed optimism that the country is on track to surpass the $1 trillion export mark in FY 2026–27, backed by rising global competitiveness and diversification across markets. Source: Newsonair  

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India set to become world’s third-largest economy by next year: Amit Shah

Union Home and Cooperation Minister Amit Shah has expressed confidence that India will emerge as the world’s third-largest economy by the end of next year. He made the statement while addressing a public gathering in his hometown Mansa, located in Gujarat’s Gandhinagar district, after inaugurating and laying foundation stones for development projects worth more than ₹267 crore. Highlighting the government’s long-term vision, Mr. Shah said India is steadily moving towards becoming a global leader across sectors by 2047. During the event, he referred to the Somnath Temple as a powerful symbol of India’s cultural identity and self-respect. He announced that the government will observe Somnath Swabhiman Parva throughout the year to highlight the temple’s thousand-year-old heritage and inspire future generations with its legacy. Speaking on sports development, Mr. Shah noted that Ahmedabad is fast emerging as an international sports destination, with efforts underway to bring the 2036 Olympic Games to the city. He encouraged young athletes in the region to make optimal use of the newly developed sports complex in Mansa. At a separate programme in Gandhinagar, the Home Minister underscored India’s remarkable progress in biotechnology. After inaugurating the BSL-4 Biocontainment Facility at the Gujarat Biotechnology Research Centre, he said India’s bio-economy has grown significantly—from 10 billion US dollars in 2014 to 166 billion US dollars by the end of 2024. Source: newsonair

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Ambani rolls out draft Reliance AI Manifesto, eyes 10x productivity leap and nationwide impact

Reliance Industries Chairman Mukesh Ambani has unveiled a draft Reliance AI Manifesto, laying out a sweeping plan to reposition the conglomerate as an AI-native deep-tech enterprise while aiming for a tenfold boost in productivity across its workforce of over six lakh employees. The initiative also targets a 10x impact on India’s economy and society. Describing artificial intelligence as “the most consequential technological development in human history,” Ambani said Reliance intends to spearhead India’s AI journey, much as it played a central role in the country’s digital transformation. The group’s stated mission is to deliver “Affordable AI for every Indian”, embedding AI across businesses while ensuring safety, trust and accountability. According to Ambani, the manifesto is not a slogan but a practical action guide. “At Reliance, we are transforming ourselves into an AI-native deep-tech company with advanced manufacturing capabilities,” he said, adding that the draft manifesto will steer this transformation. Internal transformation through AI Part I of the manifesto focuses on reshaping Reliance’s internal operations. AI is positioned not as a standalone technology initiative but as a fundamentally new way of working. The group plans to reorganise around outcomes and end-to-end workflows, supported by shared digital platforms and robust governance frameworks. AI and agentic automation will be deployed to reduce repetitive tasks, enhance decision-making, and improve speed and quality, while maintaining clear human accountability. Execution will be driven by small, cross-functional teams or “pods” with defined ownership and measurable goals, supported by continuous data, learning, operations and automation systems. Core workflows such as procure-to-pay, order-to-cash, hire-to-retire and plant-to-port will be redesigned to eliminate manual handoffs, close digital gaps and enable real-time visibility. Ambani stressed that AI will augment human capability rather than replace jobs, saying the focus is on raising standards and unlocking collective potential. A common 12-layer Digital Functional Core (DFC) will standardise data, integration, security and controls across Reliance businesses, while allowing individual units autonomy over their platforms. Governance, audit trails and human-in-the-loop mechanisms will be embedded to balance speed with safety, compliance and trust. Driving India’s AI-led growth Part II extends the vision beyond Reliance, positioning the group as a catalyst for India’s broader AI transformation. Ambani said that just as AI can deliver a 10x improvement in efficiency and outcomes within Reliance, it can also generate a similar multiplier effect for the country through the group’s businesses and philanthropic efforts. Employees have been invited to submit ideas on AI applications across Reliance’s diverse portfolio—from Jio’s 500-million-plus subscribers and the country’s largest retail network to energy, materials, life sciences, financial services, media and philanthropy. Ambani also pointed to opportunities in indigenous AI hardware, robotics and cross-sector innovation to boost efficiency, sustainability and technological self-reliance. Ideas can be submitted between January 10 and 26, after which the manifesto is expected to evolve into a shared organisational commitment. “Let us begin—together,” Ambani said, calling on employees to help build “a New Reliance and a New India.” Source: PTI

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Salaries in India set to climb 9% in 2026 despite global slowdown: Aon survey

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Amid global economic headwinds, salaries in India are projected to rise by 9% in 2026, driven by strong domestic demand, steady investments, and supportive government policies, according to Aon’s Annual Salary Increase and Turnover Survey 2025–26. The forecast represents a slight uptick from the 8.9% average salary growth recorded in 2025, highlighting the continued resilience of India’s economy even as many other markets experience slower expansion. The 30th edition of Aon’s survey draws insights from 1,060 organisations across 45 industries, revealing significant variations in salary hikes by sector. Real estate and infrastructure firms are expected to see the steepest pay increases at 10.9%, followed closely by non-banking financial companies (NBFCs) at 10%. Other key sectors — including automotive, engineering design services, retail, and life sciences — are likely to post average salary hikes of around 9.6–9.7%, reflecting ongoing investments in critical and skilled talent areas. “India’s growth narrative remains strong, propelled by infrastructure investments and policy support. Organisations are adopting a strategic approach to compensation to ensure sustainable growth and workforce stability amid global uncertainty,” said Roopank Chaudhary, Partner and Rewards Consulting Leader, Talent Solutions, India at Aon. The report also notes a continued decline in employee attrition, which fell to 17.1% in 2025 from 17.7% in 2024 and 18.7% in 2023 — signaling greater workforce stability. With reduced churn, companies are increasingly focusing on upskilling and development initiatives to strengthen their talent pipelines and prepare for future growth opportunities. Source: PTI

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PM Modi on GST reforms: “Savings festival to bring smiles to every household”

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Prime Minister Narendra Modi on Monday praised the rollout of the new Goods and Services Tax (GST) reforms, describing them as a step that will reduce expenses and spread happiness across homes. Speaking during his visit to an exhibition in Itanagar, Modi interacted with local traders and retailers, emphasizing how the changes would ease financial burdens. Sharing newspaper headlines on social media platform X, he wrote, “From markets to households, GST Bachat Utsav brings a festive buzz, ensuring lower costs and brighter smiles in every home!” The revised GST structure, which came into effect on September 22, coinciding with the start of Navratri, replaces the earlier four-tier system of 5%, 12%, 18%, and 28% with a simplified two-rate model of 5% and 18%. The government projects that these changes, along with earlier income tax reliefs, could result in national savings of ₹2.5 lakh crore. In his address on Sunday, Modi highlighted that the reforms would empower farmers, youth, women, shopkeepers, small traders, and entrepreneurs. He stressed that MSMEs stand to gain significantly, with higher sales and reduced tax liabilities creating a “double bonanza.” The Prime Minister also urged citizens to prioritize Indian-made products, stating that self-reliance and pride in local goods will accelerate the nation’s progress. Source: Hindustan Times

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GST on Premium TVs Cut to 18%: A Game-Changer for Media, Entertainment, and OTT

At its 56th meeting, the GST Council delivered a festive-season boost to consumers and the electronics industry. Finance Minister Nirmala Sitharaman announced that starting September 22, all televisions above 32 inches will now attract 18% GST, down from 28%. This tax relief significantly reduces the cost of premium LED, Smart, and 4K TVs, making them more accessible to middle-class households and potentially reshaping the way Indians consume content across TV and OTT platforms. Bigger TVs, Lower Prices Previously, larger televisions were categorized as luxury items, putting them out of reach for many. With the revised GST slab, prices will drop noticeably. For example, a 40-inch smart TV priced at ₹22,000 earlier attracted ₹6,160 in tax, pushing the final price to ₹28,160. Under the new rate, the tax is just ₹3,960, bringing the final price down to ₹25,960 — a saving of ₹2,200. Boost for Consumer Electronics and Manufacturing The tax cut not only makes large-screen TVs more affordable but also encourages upgrades from smaller sets. Industry experts say this will spur sales during the festive season, particularly Diwali, while helping manufacturers by reducing supply-chain distortions and improving profitability through input tax credits. Increased demand is expected to stimulate fresh investments in production capacity. Connected TVs to Drive OTT Adoption As larger smart TVs become mainstream, they are set to accelerate the growth of Connected TV (CTV) viewership. With built-in streaming capabilities, households will have easier access to platforms like Netflix, Amazon Prime Video, Disney+ Hotstar, and others. The shift toward bigger screens is expected to drive subscription growth and normalize high-quality OTT viewing as part of everyday entertainment. Advertising Opportunities on the Rise The ripple effect will also benefit advertisers. With more viewers consuming content on CTVs, brands gain opportunities for targeted, interactive ad campaigns. This creates a strong incentive for the advertising ecosystem, further boosting the revenue potential of streaming platforms. A Win-Win for Consumers and the Media Sector Overall, the GST cut on premium TVs is poised to be a triple win—consumers enjoy affordable upgrades, manufacturers see higher demand and investment opportunities, and the media & OTT sector benefits from increased viewership, subscriptions, and advertising growth. Source: TOI  

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Cable TV Operators Seek GST Cut to 5% Amid Rising Costs

The All India Digital Cable Federation (AIDCF) has urged Finance Minister Nirmala Sitharaman to lower the goods and services tax (GST) on cable television services from 18% to 5%, citing mounting financial stress and rising consumer bills. In its appeal, the federation argued that such a move would not only align with Prime Minister Narendra Modi’s vision for GST reforms but also ensure affordable access to television services for millions of households across India. According to AIDCF, cable TV currently reaches more than 64 million homes and sustains around 1–1.2 million jobs. However, the sector is struggling with steep hikes in broadcaster tariffs, shifting consumer preferences, and growing competition from unregulated OTT platforms. “Satellite channel prices have spiked by nearly 600% in recent years, causing a 35–40% surge in monthly consumer bills. A GST cut would help ease this burden and maintain affordability,” said Manoj P. Chhangani, Secretary General of AIDCF. The federation highlighted that the industry, made up of 852 multi-system operators and about 1.6 lakh local cable operators—most of them small entrepreneurs in towns and villages—is under severe liquidity pressure. A lower GST rate, it said, would help sustain operations, curb subscriber churn, and enable investment in broadband services, complementing the government’s Digital India initiative. Representing over 60% of India’s cable TV market, AIDCF has requested that the demand be considered at the 56th GST Council meeting scheduled for September 3–4 in New Delhi. The council is also reviewing a proposal to simplify the GST structure by merging the current four-tier system (5%, 12%, 18%, 28%) into two slabs—5% and 18%. Source: Economic Times  

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Online Gaming Bill becomes law after President’s assent

President Droupadi Murmu has approved the Promotion and Regulation of Online Gaming Bill, 2025, officially turning it into law just a day after the Rajya Sabha cleared it. The new legislation imposes a complete ban on online money gaming services, prescribing penalties of up to three years in jail and fines as high as ₹1 crore for operators. Advertising such banned platforms could attract up to two years imprisonment and fines of ₹50 lakh. The Rajya Sabha passed the bill in just 26 minutes, following the Lok Sabha’s approval in seven minutes, despite opposition protests questioning the rushed process. Union Electronics and IT Minister Ashwini Vaishnaw, defending the law, said millions were being pushed into debt traps. “From time to time, society faces social evils. It is the responsibility of the government and Parliament to intervene with appropriate laws,” he told the House. He also cited official estimates showing that 450 million players have collectively lost over ₹20,000 crore to money-based online gaming. Prime Minister Narendra Modi welcomed the move, stressing that the law will promote e-sports and social gaming while shielding society from the dangers of gambling-driven online games. “This Bill highlights our commitment to make India a hub of gaming, innovation, and creativity. It will encourage healthy gaming while protecting people from harmful effects of money gaming,” he said. However, the decision has sparked outrage within the industry. Representatives of the ₹31,000 crore sector argue that the ban is a “death knell” for legitimate businesses, warning that offshore operators will benefit while Indian companies suffer. They pointed out that the sector employs over 200,000 people and has attracted ₹25,000 crore in foreign investment since 2022. In the immediate aftermath of the law’s passage, major platforms including Dream11 and WinZO announced they would shut down operations. Source: Hindustan Times

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