Indian banks are likely to maintain stable asset quality despite continuing geopolitical uncertainty in West Asia, with slower growth in unsecured lending and reduced exposure to vulnerable segments expected to limit the risk of fresh bad loans, according to a Goldman Sachs report. The global investment bank said the asset-quality outlook for Indian lenders has improved substantially over the past five years, leaving the banking sector better positioned to absorb potential external shocks.

Goldman Sachs said concerns over asset quality have largely been concentrated in granular unsecured lending, particularly consumer unsecured loans and the microfinance (MFI) segment. Aggressive credit expansion in these areas had contributed to higher leverage among borrowers and triggered a non-performing loan (NPL) cycle, with the impact largely concentrated among mid-sized private banks. State-owned banks had no exposure to this particular segment, while stress at large private-sector banks remained limited to manageable levels, according to the report.

Unsecured lending slows

The risk of fresh stress has eased following significant deleveraging across vulnerable lending segments over the past 12-18 months. Goldman Sachs noted that the MFI loan book has contracted by 25% from its peak of Rs 4.4 trillion recorded in March 2024.

Growth in consumer unsecured loans has also moderated. Such lending expanded by around 10-12% in FY25 and FY26, compared with much faster growth of 25-30% during FY23 and FY24. The slowdown indicates that banks have become more cautious in extending credit in segments that previously experienced rapid expansion and rising repayment stress.

The changes are significant for the broader asset-quality outlook because unsecured loans generally carry greater credit risk than secured lending. A sustained moderation in growth, combined with borrower deleveraging, could therefore reduce the pace at which new stressed assets emerge.

West Asia impact seen limited

Goldman Sachs expects the ongoing West Asia crisis to have a limited direct impact on the asset quality of Indian banks. While geopolitical disruptions can affect businesses, trade, commodity prices and borrower cash flows, the report suggests that banks' reduced exposure to vulnerable lending categories provides an additional buffer.

The assessment comes as Indian lenders enter the period of heightened global uncertainty after several years of improvement in bad-loan conditions. The banking sector has also benefited from more disciplined credit expansion and lower exposure to segments that previously generated disproportionate stress.

MFI sector gets credit cover

The microfinance sector has another layer of protection through the Credit Guarantee Fund for Micro Units (CGFMU). According to Goldman Sachs, around 80-90% of the MFI loan book at several banks is now covered by the government-backed guarantee mechanism.

Such coverage could help cushion banks if non-performing loans increase sharply in the segment. However, the underlying quality of borrowers and the ability of financial institutions to maintain disciplined underwriting will remain important factors in determining future asset quality.

Consumer credit still has room

Despite the recent moderation, Goldman Sachs noted that consumer credit remains structurally underpenetrated in India. Unsecured loans account for around 18% of the overall retail loan book, indicating that the segment still has considerable potential for expansion.

For banks, the challenge will be to capture that growth without repeating the aggressive lending cycle seen in earlier years. Overall, the Goldman Sachs assessment indicates that Indian lenders are entering a period of geopolitical uncertainty with stronger asset-quality buffers, lower exposure to risky unsecured lending and more measured credit growth.

The Centre is set to deploy the ‘Kanda Express’ from Monday to move onions from buffer stocks in Maharashtra to major consumption centres as retail prices climb sharply across several cities. The special rail service will transport onions from Nashik to Delhi, Chennai, Kochi and Guwahati, where prices have risen significantly, in an effort to improve supplies and contain further increases in the cost of the staple vegetable.

According to the Department of Consumer Affairs, the average retail price of onions reached around Rs 42 per kg on Saturday, marking a 45% increase from the same period last year and a rise of more than 19% over the previous month. The increase has been steeper in some major markets. Delhi recorded retail prices of around Rs 65 per kg, compared with Rs 35 a year ago, while onions in Chennai were selling for about Rs 58 per kg against Rs 33 last year. Consumer Affairs Secretary Nidhi Khare said the government was preparing to move onions from its buffer stocks by rail to markets experiencing elevated prices. She also said adequate stocks were available with both farmers and the government to meet demand in the coming months.

Maharashtra onion supply under pressure

The government intervention follows reports of a 5-7% decline in kharif onion production in Maharashtra, the country's largest onion-producing state. Lower acreage and delayed monsoon rains have been cited among the factors affecting output. However, the Agriculture Ministry's second advance estimate puts India's total onion production for the 2025-26 crop year at 30.73 million tonnes, broadly similar to the 30.76 million tonnes recorded in the previous year.

Wholesale prices have also increased considerably. At Lasalgaon, Maharashtra's major onion trading hub, prices have nearly doubled since June, reaching around Rs 3,800 per quintal from approximately Rs 2,000.

Government strengthens buffer stocks

To reinforce supplies, NAFED and the National Cooperative Consumers' Federation (NCCF) have procured around 0.12 million tonnes of onions during the current fiscal year. The procurement price has also been raised several times, from Rs 1,270 per quintal in May to Rs 2,645 per quintal last week.

The government plans to release the buffer stock in a calibrated manner, particularly in markets where retail prices are substantially higher than the national average. Moving supplies directly to major consumption centres is expected to help increase availability while limiting additional pressure on retail prices.

‘Kanda Express’ to target key markets

The Centre has used rail-based onion transportation previously to respond to regional price pressures. A similar ‘Kanda Express’ operation was run in October 2024, moving onions from Nashik to major consuming markets.

The latest operation comes as the government seeks to prevent the current price increase from spreading further. While production estimates indicate that overall onion availability remains relatively stable, differences in supply across markets have contributed to sharp price variations.

With sufficient stocks reportedly available with farmers and government agencies, the immediate focus will be on moving onions to high-price markets and improving availability. The effectiveness of the rail shipments will depend on how quickly the additional supply reaches consumers and whether wholesale prices begin to ease in the coming weeks.

India is considering limited duty-free sugar imports as domestic prices climb to record levels ahead of the festive season, according to a Reuters report citing government and industry sources. The proposed move, if approved, could bring overseas sugar into India for the first time in nearly a decade as authorities look for ways to increase supplies and prevent prices from rising further during the high-demand period from August to November.

Several measures are reportedly being discussed, including reducing import duties, allowing a limited quantity of sugar to be brought into the country, restricting the stocks held by bulk traders and changing the monthly quantity mills are permitted to release into the domestic market. Wholesale sugar prices in Kolhapur, one of Maharashtra’s major trading centres, have reportedly risen nearly 20 per cent since the start of August to around Rs 5,350 per 100 kg. The increase has come despite government assessments that domestic stocks should be sufficient to meet consumption until the arrival of new-season sugar. Industry participants, however, say supplies in the physical market have become tight. Ashok Jain, president of the Bombay Sugar Merchants Association, told Reuters that imports may be needed to improve availability and control prices during the festive period.

One proposal being considered would allow sugar mills to import around 1 million metric tonnes of sugar without duty before the end of October, according to a Mumbai-based dealer cited in the report. Mills could prefer raw sugar over white sugar because the current domestic price of refined sugar leaves limited room for profitable imports. India already has some port-based sugar refineries that can import raw sugar duty-free under a system requiring them to export an equivalent quantity of refined sugar. Authorities could also ask such refineries to redirect part of their existing stocks to the domestic market. One estimate cited in the report suggests this could potentially release around 300,000 tonnes of sugar locally.

The timing is important because sugar consumption normally increases during the August-November period. Ganesh Chaturthi, Dussehra and Diwali lead to higher demand from households, sweet manufacturers, confectionery businesses and other consumers. With prices already elevated, the government is looking to avoid another sharp increase during the festival season. Officials are also considering changes to ethanol production. Reuters had earlier reported that the government was examining whether less sugarcane should be diverted towards ethanol in the season beginning in October, allowing mills to use more cane for sugar production instead.

A decision to permit imports would mark a notable change in India’s recent sugar policy. The country has often relied on export restrictions and supply-management measures to protect domestic availability and keep prices under control. In May, India extended a ban on sugar exports until September 30, 2026, or until further orders. The latest discussions indicate that the supply situation has changed enough for imports to be considered despite those efforts. India is also the world’s biggest sugar consumer, meaning any substantial purchase from international markets could have an impact beyond the domestic market, potentially supporting benchmark sugar prices in London and New York. The government has not yet taken a final decision, and the exact quantity and terms of any imports remain under discussion.

Crude oil prices have climbed above $91 a barrel as hopes of a quick resolution to the US-Iran conflict weaken, raising fresh concerns over energy supplies and shipping through the strategically important Strait of Hormuz. The rise could put pressure on India’s import bill, the rupee and, if sustained, the prices of transport fuels and aviation-related services. (Reuters)

Brent crude rose to around $91.49 per barrel on Tuesday, while US West Texas Intermediate (WTI) crude moved above $85. Oil prices have been rising for a third consecutive session amid uncertainty over the future of the US-Iran ceasefire and concerns about disruptions to tanker traffic. (Reuters)

For India, which imports a large share of its crude oil requirement, a prolonged increase in international oil prices can have wider economic consequences.

Why Oil Is Above $91

The latest rise in crude prices is closely linked to renewed uncertainty over the US-Iran conflict.

Iran has indicated that it could adopt a more aggressive military posture after efforts to reach a permanent resolution stalled. At the same time, the United States has declined to extend the temporary ceasefire agreement that expired on Monday.

The developments have increased concerns that disruptions around the Strait of Hormuz could continue. Oil markets immediately factor such supply risks into crude futures, adding a geopolitical premium to prices. (Reuters)

Why Hormuz Matters to India

The Strait of Hormuz is one of the world's most important energy shipping routes. Any prolonged disruption can make the movement of crude oil and petroleum products more difficult and expensive.

Recent attacks and restrictions have already reduced shipping traffic through the waterway. Reuters reported that tanker transit has remained severely constrained amid the conflict, adding to concerns about global supply availability. (Reuters)

For India, the issue is particularly important because higher global crude prices increase the cost of importing energy.

Will Petrol Prices Rise?

Higher crude oil prices do not automatically mean an immediate increase in petrol or diesel prices in India.

Retail fuel prices are influenced by several factors, including international crude prices, the rupee-dollar exchange rate, refining costs, taxes and the pricing decisions of oil marketing companies.

However, if crude remains above $90 for an extended period, pressure on domestic fuel economics could increase.

The rupee is already facing pressure from higher oil prices. Reuters reported that the Indian currency weakened beyond the ₹95.50-per-dollar level on Tuesday as rising crude prices increased concerns about India's external position. (Reuters)

A weaker rupee makes dollar-denominated crude imports more expensive for Indian refiners.

What About LPG Prices?

LPG could also come under pressure if international energy prices remain elevated.

Domestic LPG prices depend on international petroleum product prices, import costs, currency movements and government policy. For subsidised or regulated consumer segments, the government and oil companies can absorb or manage part of the increase.

This means consumers may not immediately see the full impact of a crude oil rally in their LPG cylinder prices.

Commercial LPG users, however, can be more exposed to changes in international energy and petroleum product prices.

Why Airfares Could Become Costlier

A sustained oil rally can also affect the aviation sector because aviation turbine fuel (ATF) is one of the largest operating expenses for airlines.

If crude and refined petroleum product prices remain high, the cost of producing and supplying jet fuel can rise. Airlines may then face higher operating expenses.

The impact on airfares would depend on how long fuel prices remain elevated, competition between airlines, passenger demand and the ability of carriers to absorb additional costs.

Therefore, an oil price spike does not necessarily translate into an immediate one-to-one increase in ticket prices.

India Faces Wider Economic Pressure

The impact of expensive crude extends beyond petrol, diesel and aviation.

Higher oil import costs can widen India's import bill and put pressure on the current account. A weaker rupee can further increase the domestic cost of imported crude.

Higher energy costs can also feed into transportation, manufacturing and logistics expenses. If companies pass these costs on to consumers, inflationary pressure could increase.

Indian equity markets have already reacted cautiously to the latest oil rally, with elevated Brent prices and renewed West Asia tensions weighing on investor sentiment. (Rediff)

What Happens Next?

The immediate outlook for crude oil will depend heavily on developments between Washington and Tehran and the situation around the Strait of Hormuz.

If diplomatic efforts resume and tanker traffic begins returning to normal, the geopolitical premium in oil prices could ease.

However, a prolonged conflict or further disruption to shipping could push prices significantly higher. The US Energy Information Administration has noted that renewed attacks on tankers and reduced shipments through the Strait have already increased volatility in global oil markets. (U.S. Energy Information Administration)

For Indian consumers, the key issue is therefore not simply whether crude crosses $91, but how long it stays there. A brief spike may have a limited impact, while sustained prices above $90 could gradually increase pressure across fuel, LPG, aviation and the broader economy.

From a largely agrarian economy struggling with poverty, low literacy and weak infrastructure in 1947 to a nearly $4 trillion economy powered by services, technology, digital payments and a growing manufacturing base, India has undergone a dramatic economic transformation over the past 79 years.

When the country gained independence on August 15, 1947, its economy was still shaped by the impact of colonial rule. Industrial capacity was limited, electricity access was poor and foreign exchange resources were largely held in sterling balances. Today, India has become one of the world's largest economies, with a rapidly expanding digital ecosystem and significantly stronger external finances.

Economy Nears $4 Trillion

According to World Bank estimates cited in recent data, India's nominal GDP reached around $3.96 trillion in 2025, compared with $3.91 trillion in 2024. GDP per capita stood at approximately $2,702.5.

India's latest official estimates also put real GDP growth at 7.7 per cent in FY2025-26, underlining the country's relatively strong expansion despite global economic uncertainties.

Historical comparisons, however, need caution. The frequently cited figure of around Rs 2.7-2.9 lakh crore for India's economy at Independence comes from historical reconstructions and is not directly comparable with today's GDP because national accounting methods, prices and exchange rates have changed considerably.

Liberalisation Changed Course

India's economic policy in the early decades after Independence was dominated by state-led industrialisation, import substitution and extensive government controls.

The 1991 balance-of-payments crisis became a major turning point. Economic reforms reduced licensing restrictions, opened several sectors to private investment and increased India's integration with the global economy.

The decades that followed witnessed rapid expansion in information technology, telecommunications, financial services and other sectors. India's services industry gradually became one of the country's biggest engines of growth and foreign exchange earnings.

Forex Reserves Cross $700 Billion

India's external financial position has also changed substantially.

The country entered Independence with limited access to freely usable foreign currency and remained closely linked to the sterling system. That situation was starkly different from the position in August 2026, when India's foreign exchange reserves crossed $700 billion.

RBI data showed reserves at around $707 billion in the week ended August 7, 2026, providing the country with a sizeable buffer against external shocks.

The contrast is particularly significant when compared with the 1991 crisis, when India faced severe pressure on its balance of payments and was forced to seek emergency external assistance.

Trade Basket Expands

India's merchandise exports were worth only around Rs 403 crore in 1947-48. The country's export basket has since expanded far beyond agricultural commodities and traditional textiles.

Engineering products, petroleum products, pharmaceuticals, chemicals, automobiles, electronics and other manufactured goods now form an important part of India's merchandise exports, while IT and professional services have emerged as major export earners.

In July 2026, merchandise exports reportedly touched a record $44.24 billion. However, imports rose faster, taking the merchandise trade deficit to around $31.98 billion.

The figures highlight both India's growing presence in global trade and the continuing challenge of improving manufacturing competitiveness.

Literacy and Life Expectancy Rise

Economic development has been accompanied by major social changes.

India's literacy rate was only 18.33 per cent in 1951, with female literacy at 8.86 per cent. Recent estimates put literacy among people aged seven and above at around 80.9 per cent.

Life expectancy has also increased sharply. From roughly 31-32 years around Independence, it has risen to around 72 years, reflecting improvements in healthcare, vaccination, sanitation, nutrition and disease control.

Yet regional differences in education and healthcare remain significant.

Digital Revolution Reshapes Economy

Perhaps no transformation has been as rapid as India's digital expansion.

India had no internet users in 1947. By March 2026, TRAI data showed more than 1.09 billion internet subscribers, including over 1.06 billion broadband connections.

The launch of UPI in 2016 accelerated the digital payments revolution. During FY2025-26, UPI processed more than 24,000 crore transactions, worth over Rs 314 lakh crore.

Alongside Aadhaar, Jan Dhan accounts and widespread mobile connectivity, UPI has become a key component of India's digital public infrastructure.

Electricity Capacity Soars

India's power infrastructure has also expanded dramatically. Electricity-generating capacity stood at only 1,362 MWaround Independence.

By March 2025, installed generation capacity had reached nearly 557 GW. Per-capita electricity consumption has also risen sharply, reflecting the expansion of households, industries, transport and digital infrastructure.

A Larger, Younger Economy

India's population has increased from around 36 crore in 1951 to nearly 146 crore, according to recent estimates.

The size of the population provides a major economic opportunity through consumption and labour supply. But the demographic advantage will depend heavily on employment, skills, productivity, healthcare and education.

Manufacturing has therefore returned to the centre of economic policy, with initiatives such as production-linked incentives aimed at attracting investment and integrating India into global supply chains.

The Road to 2047

India's transformation since Independence is substantial, but the next phase presents a different set of challenges.

Creating enough quality jobs, improving productivity, reducing regional disparities, strengthening manufacturing, managing urbanisation and addressing climate-related risks will be crucial.

The country's ambition of becoming a developed economy by 2047 will require sustained growth as well as broader improvements in human capital and living standards.

From a constrained post-colonial economy to a globally integrated, digitally connected and increasingly diversified economic powerhouse, India's journey over 79 years has been significant.

The bigger question now is not simply how large the Indian economy can become, but whether its next phase of growth can translate into higher incomes, better jobs and more inclusive prosperity for its vast population.

As India marks its 80th Independence Day, the country enters its ninth decade with one of the world's largest working-age populations. With an estimated population of around 1.46 billion and a median age of about 29 years, India has a significant demographic advantage. But the opportunity is not evenly distributed across the country.

Around 68 per cent of Indians, or nearly one billion people, are between 15 and 64 years of age. This large working-age population could support economic growth through manufacturing, services and domestic consumption. However, India now faces a widening demographic divide between an ageing South and a younger North, along with the challenge of creating enough jobs and increasing women's participation in the workforce.

South India Starts Ageing

Several southern and western states entered the demographic transition earlier after decades of investment in education, healthcare and family planning.

States such as Kerala and Tamil Nadu now have fertility rates well below the replacement level of 2.1 births per woman. Kerala, in particular, is experiencing a rapid increase in its elderly population, with people aged 60 and above accounting for a significant share of the state's population.

For these states, the demographic challenge is changing. Governments will increasingly have to prepare for a larger elderly population, smaller school-age cohorts and a reduced pool of young workers.

Industries in the South and West could also face greater competition for labour in the coming decades.

North Has Young Workforce

The demographic picture is markedly different in several northern states.

Bihar, Uttar Pradesh and Madhya Pradesh continue to have relatively young populations and are expected to contribute a substantial share of India's labour-force growth in the years ahead.

Bihar's median age is below 23, while its fertility rate remains higher than the national average.

This creates a potential economic connection between two parts of India. Industrial centres in the South and West will increasingly need workers, while younger populations in the North will need skills, employment and opportunities.

Migration Could Bridge Gap

Interstate migration and vocational training could therefore become increasingly important to India's economic future.

Workers from states with large young populations could be connected with employment opportunities in manufacturing, construction, logistics and services in states facing labour shortages.

However, migration will require more than employment opportunities. Affordable housing, transportation, healthcare, social security and access to public services will also be important for workers moving between states.

Women Remain Underused

India's demographic challenge is not limited to regional differences. Women's participation in the workforce remains another major gap.

Female labour force participation is significantly below male participation, particularly in urban areas. Women continue to face barriers including safety concerns, unpaid domestic responsibilities, limited childcare facilities and a shortage of flexible employment options.

Rural women have relatively higher participation, partly because of their involvement in agriculture and family-based economic activities. Urban female participation, however, remains considerably lower.

Increasing women's participation could significantly expand India's effective workforce and add to economic growth.

Job Creation Is Critical

A large working-age population does not automatically translate into a demographic dividend.

India must create enough productive employment to absorb millions of new entrants into the labour market. The focus will need to extend beyond low-productivity informal employment towards manufacturing, services, technology, green industries and export-oriented sectors.

Labour-intensive manufacturing could play an important role by creating jobs for workers with different levels of education and skills.

The challenge is particularly important for states such as Bihar and Uttar Pradesh, where large numbers of young people will enter the workforce over the coming decades.

Demographic Window Closing

India's demographic advantage also has a time limit.

Demographers expect the country's dependency ratio to reach a historic low around 2041, after which population ageing is likely to increase the proportion of dependants relative to the working-age population.

This gives India roughly the next 15 years to maximise the benefits of its demographic structure.

The priority will be to ensure that today's young population becomes a skilled and productive workforce before the window begins to narrow.

Three Priorities Ahead

India's demographic strategy will require action on three broad fronts.

First, stronger interstate skill and employment corridors can connect young workers with regions where labour demand is growing.

Second, investment in urban care infrastructure, including childcare, safe public transport and workplace support, can help more women enter and remain in paid employment.

Third, India needs job creation at scale, particularly in labour-intensive manufacturing and emerging industries.

India’s Demographic Test

India enters its 80th year of Independence with a rare demographic opportunity: a huge population, a relatively young workforce and a growing economy.

But population size alone will not guarantee prosperity.

The country must bridge the demographic gap between its younger North and ageing South, bring more women into productive employment and create millions of quality jobs.

If India manages this transition effectively, its demographic dividend could become one of the country's strongest economic advantages. If the opportunity is missed, the same demographic pressures could eventually become a constraint on growth.

Her speech ranged from Operation Sindoor and the suspension of the Indus Waters Treaty to public-examination reforms, digital payments, women’s achievements and the protection of natural resources. Here are the 10 biggest takeaways.

1. India’s economy amid global instability

The President said India continues to be the fastest-growing major economy despite warfare and instability in several parts of the world. Citing economic projections, she said India’s growth rate was expected to be more than twice the global average.

2. Self-reliance as an economic and security strategy

She presented Atmanirbhar Bharat as more than an industrial programme, arguing that domestic capability strengthens both economic progress and national security. The message assumes added importance at a time of tariff disputes, supply-chain disruption and conflict-driven pressure on fuel and commodity prices.

3. Operation Sindoor sent a message beyond the battlefield

President Murmu described Operation Sindoor as a demonstration of the precision and capability of India’s armed forces. She said the operation conveyed that terrorists and those supporting them would face consequences regardless of where they attempted to hide.

4. Indus Waters Treaty suspension defended

The President defended the suspension of the Indus Waters Treaty with Pakistan, describing it as a decisive step taken in the national interest and particularly in the interest of Indian farmers. The reference was significant because Pakistan’s leadership had again criticised India’s water policy earlier in the day.

5. Naxalism and the transformation of affected regions

She highlighted the drive to make India free of Naxalism as a major national achievement, saying areas that had lived under the shadow of violence for decades were now witnessing renewed confidence and enthusiasm. The message has particular resonance in Chhattisgarh and parts of Madhya Pradesh.

6. Public examinations must become trustworthy

Calling students the architects of India’s future, President Murmu stressed the need to protect the integrity of public examinations. She said reforms were aimed at stopping unfair practices and making examinations more transparent, secure and credible for young people.

7. Welfare numbers placed at the centre of the address

The President cited the government’s estimates that more than 25 crore people had moved out of poverty. She also referred to nearly 59 crore Jan Dhan account holders, more than 32 crore of them women; free food support for over 80 crore people; and health coverage of up to Rs 5 lakh for around 60 crore beneficiaries under Ayushman Bharat.

8. India’s digital infrastructure as a global strength

She said India had created the world’s largest digital public infrastructure and accounted for more than half of global real-time digital transactions. Technology, she argued, had also made the delivery of welfare benefits more transparent.

9. Women are breaking barriers

President Murmu pointed to women’s growing participation across education, agriculture, defence and sport - from Drone Didis to the Air Force’s first woman Fighter Combat Leader. She also noted that women won eight of India’s 13 gold medals at the recently concluded Commonwealth Games in Glasgow.

10. Development must not consume the future

Her concluding message linked development with environmental responsibility. Future generations, she said, have an equal right to natural resources, and present-day decisions must not diminish that inheritance.

The larger political message

The address sought to present a single national narrative: security without hesitation, growth rooted in self-reliance, opportunity protected by fair institutions and development that reaches the most vulnerable. President Murmu closed with the Vedic expression ‘Vayam Rashtre Jagriyam’ - a call to remain alert and ready in the service of the nation.

Indian equity markets came under pressure in early trade on Friday, August 14, with the Sensex falling around 300 points to nearly 77,800, while the Nifty 50 declined about 80 points to around 24,300.

The weakness was visible across the market as investors assessed corporate earnings and global market cues. Among individual stocks, Tata Motors Passenger Vehicles came under pressure after reporting a sharp decline in quarterly profit.

Tata Motors PV Shares Under Pressure

Shares of Tata Motors Passenger Vehicles fell around 5 per cent to ₹332.75 following the company's April-June quarterly results.

The company's profit for the quarter reportedly declined by more than 80 per cent to ₹775 crore. The earnings performance put pressure on the stock during Friday's session.

Investors are also tracking developments related to the company's operations and supply-chain conditions as the market assesses its latest financial performance.

Technocraft Ventures Makes Strong Debut

The primary market saw a strong listing from Technocraft Ventures, an engineering and construction sector company.

The stock was listed on the NSE at ₹284, representing a gain of 43.40 per cent over its issue price of ₹212. On the BSE, the stock opened at around ₹285.

The company's ₹251.88-crore IPO had received strong investor interest, with the issue being subscribed more than 38 times.

The funds raised through the offering are intended to support the company's working capital requirements and other corporate purposes.

LEAP India Shares List at Premium

Shares of pallet and container leasing company LEAP India also made their stock market debut on Friday.

The shares were listed on the NSE at ₹165.90, around 4.34 per cent above the IPO issue price of ₹159. On the BSE, the stock opened at ₹166.

The company's ₹2,480-crore public issue was subscribed around 8.37 times overall.

The company plans to use proceeds from the fresh issue towards debt repayment and working capital requirements.

Asian Markets Trade Mixed

Asian markets showed mixed movement during Friday's session.

South Korea's KOSPI was up around 1.37 per cent, while Japan's Nikkei gained about 0.85 per cent. Hong Kong's Hang Seng Index, however, was trading lower by around 0.93 per cent.

The mixed regional trend provided a varied global backdrop for Indian investors.

Global Cues Remain in Focus

US markets had ended Thursday's session with gains, according to the figures available for August 13.

The Dow Jones gained around 70 points, while the Nasdaq advanced about 215 points. The S&P 500 also closed higher, rising around 50 points.

Investors in India are watching global equity movements, corporate earnings, foreign fund flows and broader economic developments for further direction.

FII Buying Continues Over Seven Days

Foreign institutional investors and foreign portfolio investors recorded net buying of around ₹720 crore over the previous seven trading days, according to the available data.

Domestic institutional investors remained stronger buyers, with net purchases of around ₹8,929 crore over seven days.

Over a 30-day period, DII purchases stood at approximately ₹34,726 crore, while FII/FPI flows remained negative at around ₹2,206 crore.

Previous Session

In the previous trading session on August 13, the Sensex gained 114 points and closed at 78,080.

The Nifty, however, ended lower by around 40 points at 24,396, reflecting the mixed trend in the domestic market.

For Friday's session, investors are likely to track the movement of heavyweight stocks, quarterly earnings, IPO listings and overseas market cues as trading progresses.

India nearly doubled its proposed coal mining capacity in 2025, pushing the country's planned capacity to 638 million tonnes per annum (MTPA) from 329 MTPA a year earlier, according to data from Global Energy Monitor (GEM).

The increase of around 94 per cent made India the biggest contributor to the expansion of the global pipeline of proposed coal mining projects. Globally, proposed coal mine capacity rose by about 11 per cent year-on-year to 2,521 MTPA in 2025.

The figures come as India continues to expand renewable energy capacity while relying heavily on coal to meet rising electricity demand and reduce dependence on imported fuel.

India Drives Global Increase

GEM's latest research identified 837 coal mine proposals worldwide, representing an increase of nearly 12 per cent from 2024.

The data is based on GEM's Global Coal Mine Tracker, which monitors coal projects at different stages, including proposed, permitted, under construction and operating mines.

India accounted for the largest share of the increase in proposed global coal mining capacity. The expansion is linked to efforts to increase domestic coal production, support electricity generation and industrial activity, and strengthen energy security.

A large portion of India's proposed mining capacity is concentrated in coal-rich states such as Jharkhand and Odisha, which have extensive reserves and established mining infrastructure.

Coal Remains Key to Power

Despite rapid growth in renewable energy, coal remains a major source of electricity generation in India.

Coal-fired power plants continue to provide baseload electricity and help meet periods of high demand when renewable generation is unavailable or fluctuates.

India's electricity consumption is also expected to grow rapidly over the coming years. According to the International Energy Agency (IEA), electricity demand in the country is projected to increase by an average of around 6.4 per cent annually through 2030.

Renewable energy is expected to meet a substantial portion of additional electricity demand, but coal is still projected to contribute significantly to the remaining requirement.

Global Coal Pipeline Expands

The increase in India's proposed capacity comes against a broader expansion in planned coal mining worldwide.

China, India, Australia, Russia and South Africa account for more than 90 per cent of proposed global coal mining capacity, according to GEM.

China alone accounts for around 1,329 MTPA, making it the largest contributor to the global pipeline.

Thermal coal intended for power generation accounts for roughly 70 per cent of proposed capacity, while metallurgical coal used in steel production is becoming an increasingly important part of new mining plans.

New Mine Openings Decline

GEM's data also shows a contrasting trend. While proposed capacity has increased, the amount of new coal mining capacity being opened has declined.

New mine capacity openings have fallen by more than 50 per cent since 2024, even as around 700 MTPA of capacity remains under construction globally.

Once completed, these projects could support coal production for decades, raising concerns about whether some mines could become financially unviable as energy systems shift towards lower-carbon sources.

Coal Demand Outlook

The IEA expects India to remain one of the world's major drivers of coal demand growth through 2030.

Its Coal 2025 outlook projects Indian coal demand to increase by an average of around 3 per cent annually, adding more than 200 million tonnes of demand by 2030.

Globally, however, the outlook is different. The IEA expects coal demand to plateau during the middle of the decade and gradually decline by 2030 as renewable energy, nuclear power and natural gas take a larger share of electricity generation.

Global coal consumption in 2030 is projected to be around 3 per cent lower than 2025 levels.

Energy Security vs Climate Goals

India's expanding coal mining pipeline highlights the challenge of balancing energy security with long-term climate objectives.

The country is rapidly increasing renewable generation capacity, but electricity demand is growing at a pace that makes coal difficult to phase out quickly.

Domestic coal production is therefore being expanded to ensure adequate fuel availability for power plants and reduce exposure to international coal prices and supply disruptions.

At the same time, a large expansion of mining capacity could create financial risks if coal demand grows more slowly than expected.

Risk of Future Overcapacity

The difference between planned mining capacity and long-term demand projections could become an important issue for the global coal industry.

If renewable energy deployment accelerates faster than expected, or if coal demand begins declining earlier, some proposed mines could struggle to find buyers or operate profitably.

For India, the immediate priority remains ensuring reliable electricity and supporting economic growth. But the scale of the proposed coal pipeline also means future investment decisions will need to account for changing energy markets and the country's long-term transition towards cleaner sources.

Parliament on Monday passed the Taxation and Other Laws (Amendment) Bill, 2026, with Finance Minister Nirmala Sitharaman making it clear that the legislation does not impose any tax or transaction charge on consumers using the Unified Payments Interface (UPI).

The Bill, which had already been passed by the Lok Sabha, was returned by the Rajya Sabha through a voice vote after a brief discussion and the Finance Minister's reply.

Addressing concerns over the proposed changes, Sitharaman said UPI would continue to be free for consumers.

“Will consumer pay any UPI charge - No. UPI has remained free for consumers since its launch and every Indian will continue to make this instant digital without paying any transaction charge,” she said.

No UPI Transaction Tax

The Finance Minister said the legislation does not introduce a tax on UPI transactions.

At present, consumers generally do not pay a transaction fee when making payments through UPI. The government has also maintained a zero-MDR framework for UPI and RuPay debit card transactions.

The Bill does not change the consumer-facing position announced by the government, Sitharaman said.

However, it gives the Centre greater legal flexibility to determine which electronic payment transactions or payment modes should remain free through government notification.

What the Bill Changes

One of the key provisions seeks to remove the existing linkage between the Payment and Settlement Systems Act and the Income Tax Act.

The legislation also provides legal backing for the government to modify the framework governing merchant discount rate (MDR) for UPI and RuPay transactions.

Under the existing system, banks and payment system providers cannot directly or indirectly charge users for transactions made through UPI and RuPay debit cards.

The new provisions would allow the central government to specify through notification which electronic payment modes or transactions must continue to be provided without charges.

Focus on Digital Payments

The clarification comes amid concerns that changes to the legal framework could eventually lead to charges being imposed on UPI transactions.

Sitharaman's statement specifically addressed consumers, making clear that the Bill does not impose a transaction fee on individuals using UPI.

The government has continued to promote digital payments as an important part of India's financial infrastructure, with UPI becoming one of the country's most widely used payment systems.

Foreign Investment Push

The Taxation and Other Laws (Amendment) Bill also contains provisions aimed at improving India's attractiveness to foreign investors and businesses.

The government has sought to make it easier for Foreign Portfolio Investors (FPIs) to invest in Indian government securities by providing tax-related clarity.

The legislation replaces an ordinance issued on June 5, which provided income-tax exemption on interest income and capital gains earned by FPIs from investments in government securities.

Easier Relocation for Funds

Another provision seeks to simplify the conditions that fund managers must meet when relocating their operations to India.

The changes reduce the number of conditions that certain investment funds need to satisfy to ensure that their global income is not taxed in India.

The government has positioned the measure as part of a broader effort to attract international financial activity and encourage fund managers to establish operations in the country.

Electronics and Data Centres

The Bill also seeks to support India's domestic electronics manufacturing sector and make it easier for foreign cloud service providers to use Indian data centres.

The government has described the proposed measures as providing greater process certainty for businesses operating in these sectors.

The broader objective is to attract foreign capital while strengthening India's position as a manufacturing and digital infrastructure hub.

UPI Remains Free

For ordinary consumers, the key takeaway from the parliamentary debate is that UPI payments will remain free under the legislation.

Sitharaman's assurance came as Parliament completed the legislative process for the Taxation and Other Laws (Amendment) Bill, 2026.

While the legislation gives the government greater flexibility over the regulatory framework for electronic payments, the Finance Minister ruled out any consumer transaction charge on UPI under the Bill.

India's strategic petroleum reserves are an important first line of defence. The country's existing strategic storage capacity stands at 5.33 million metric tonnes of crude oil, equivalent to roughly 9.5 days of crude consumption when fully available. The government is also pursuing additional storage capacity, including an ONGC-backed plan for a 1.75-million-tonne strategic reserve. 

But reserves alone cannot create energy resilience.

The real test comes when geopolitical tensions disrupt shipping routes, crude prices jump, freight costs rise and the consequences eventually reach household budgets. That is where India's energy strategy needs to become more directly connected to the economic reality of the middle class.

The Household Is the Real Stress Test

When international oil markets are disrupted, the first concern for policymakers is usually supply. For families, however, the concern is affordability.

A prolonged increase in crude prices can raise transportation costs, affect food distribution and increase the operating expenses of businesses. Even when petrol or diesel prices do not immediately rise by the same proportion as international crude, households can eventually feel the impact through higher prices across the economy.

The recent global energy turmoil has already demonstrated how quickly geopolitical events can become economic problems. India's vulnerability is significant because the country remains heavily dependent on imported crude.

That means energy resilience should ultimately be measured not only in barrels stored, but also in how much economic pain households experience during a disruption.

LPG Needs to Be Part of the Strategy

This is where the debate around strategic reserves becomes particularly important.

India has built strategic reserves for crude oil, but household energy security also depends heavily on LPG. A disruption in global supply can affect cooking fuel availability and prices, particularly for families that have limited room in their monthly budgets.

Recent reports indicate that the government has been considering a broader strategic fuel reserve covering LPG and LNG, potentially funded partly through a levy on consumers. The proposal illustrates an important policy shift: energy security cannot be limited to crude oil alone. 

However, any such mechanism must be designed carefully.

A reserve intended to protect consumers should not become another recurring financial burden on those same consumers.

Diversification Is Better Than Stockpiling Alone

India has already been moving towards greater diversification of energy supplies.

Recent government data indicates that India now sources LNG from 15 countries, compared with six earlier, while crude oil sourcing has expanded to 41 countries from 27. Diversification reduces dependence on any single supplier or route and can provide greater flexibility during geopolitical disruptions. 

This approach deserves greater emphasis.

A country cannot stockpile its way out of every energy crisis. Strategic reserves buy time. Diversified suppliers, multiple shipping routes, domestic production and alternative energy sources determine what happens after that time runs out.

Electricity Could Be the Biggest Buffer

The most important long-term opportunity may lie beyond oil and gas.

India's growing renewable-energy capacity, battery storage, electric mobility and expansion of domestic electricity infrastructure can gradually reduce the economy's exposure to imported fossil fuels.

That does not mean India can suddenly replace oil with electricity. Transport, aviation, petrochemicals and several industrial processes will continue to require hydrocarbons for years.

But every kilometre travelled in an electric vehicle, every household appliance powered by increasingly domestic electricity and every industrial process shifted towards cleaner indigenous energy reduces exposure to international fossil-fuel volatility.

Energy transition, therefore, should not be treated only as a climate policy. It is also an economic security policy.

Middle Class Needs Protection

There is another dimension that deserves greater attention: household preparedness.

Energy resilience should mean that a family does not have to completely restructure its monthly budget every time global oil markets become unstable.

That requires predictable fuel taxation, targeted support for vulnerable consumers, efficient public transport, affordable electric mobility, reliable electricity supply and policies that prevent temporary international shocks from becoming permanent domestic inflation.

The objective should not necessarily be to freeze prices indefinitely. It should be to prevent sudden energy shocks from disproportionately damaging household finances.

Resilience Must Reach the Last Mile

India's energy security architecture has traditionally been designed from the top down: strategic reserves, refineries, pipelines, shipping routes and national supply chains.

All of these remain essential.

But resilience ultimately has to reach the last mile.

A strategic reserve in an underground cavern cannot directly help a family struggling with a higher monthly LPG bill. A diversified crude supply cannot by itself protect a small business from a sudden increase in transport costs. And a national energy policy cannot be considered fully successful if households remain highly vulnerable to every international crisis.

The next phase of India's energy strategy should therefore combine strategic reserves with diversified imports, domestic production, renewable energy, storage, efficient transport and consumer protection.

The Bigger Question

India should continue expanding its strategic petroleum reserves. That is not a choice between reserves and renewable energy; the country needs both.

The larger question is what happens beyond the reserve.

Strategic stockpiles can provide breathing space during a crisis. Diversified imports can reduce supply risks. Renewable power and electrification can reduce long-term dependence on imported hydrocarbons. Stronger infrastructure can improve reliability. Sensible consumer policies can ensure that the cost of resilience does not fall disproportionately on households.

For middle-class India, real energy security is ultimately about predictability—knowing that a conflict thousands of kilometres away will not suddenly make cooking, commuting, electricity and everyday life unaffordable.

That should be the benchmark for India's next generation of energy policy.

Can using a bus instead of a private car, postponing a gold purchase or choosing an Indian holiday over a foreign trip help strengthen the national economy?

Prime Minister Narendra Modi believes such everyday choices, when adopted collectively, can make a significant difference. Addressing a programme in Hyderabad on May 10, the Prime Minister presented seven appeals aimed at conserving foreign exchange, reducing dependence on imports and advancing India’s goal of economic self-reliance.

The appeals were made against the backdrop of the West Asia crisis, rising international crude-oil prices and concerns over disruptions to global energy and trade routes. According to News On AIR, crude prices were trading above $100 per barrel and had touched a 52-week high of $126.

What are PM Modi’s seven appeals?

1. Reduce petrol and diesel consumption

Modi urged citizens to use metros, buses and other forms of public transport wherever possible. Carpooling and avoiding unnecessary private-vehicle journeys could collectively reduce India’s fuel consumption and import bill.

2. Avoid unnecessary foreign travel

The Prime Minister asked Indians to reconsider non-essential overseas travel for one year. Choosing domestic destinations would keep tourism expenditure within India while supporting hotels, transport operators and local businesses.

3. Postpone non-essential gold purchases

India imports a substantial portion of the gold consumed in the country. Modi appealed to families to consider postponing non-essential gold purchases for a year to help reduce the outflow of foreign exchange.

The appeal is voluntary and does not constitute a ban on buying gold.

4. Work from home wherever practical

Companies were encouraged to revive work-from-home arrangements wherever the nature of employment allows it. Fewer daily commutes could reduce fuel consumption, traffic congestion and pressure on household transport budgets.

5. Consume less edible oil

Modi also asked citizens to reduce their consumption of cooking oil. The suggestion links two objectives: lowering India’s dependence on imported edible oil and encouraging healthier eating habits.

6. Reduce dependence on chemical fertilisers

Farmers were urged to cut the use of chemical fertilisers and gradually move towards natural and sustainable farming practices. A subsequent Press Information Bureau statement said the Prime Minister had called for a 50 per cent reduction in chemical-fertiliser use, along with wider adoption of solar-powered irrigation pumps instead of diesel pumps.

7. Choose Swadeshi and support local products

The final message was to give preference to locally manufactured goods. Under the “Vocal for Local” campaign, spending on Indian products is presented as a way to support domestic industries, small businesses, farmers and employment.

Why did the Prime Minister make these appeals?

India depends heavily on imports for crude oil, gold, edible oil and several types of fertilisers. When global prices rise or international supply routes are disrupted, the country’s import bill can increase sharply, putting pressure on government finances, businesses and consumers.

However, the government clarified that the appeal was about responsible consumption and long-term preparedness—not panic. On May 11, the Centre said India had sufficient stocks, including approximately 60 days of crude oil, 60 days of natural gas and 45 days of LPG. It also placed the country’s foreign-exchange reserves at around $703 billion at the time.

Modi’s larger message was that economic self-reliance is not limited to government policy or industrial production. Individual choices—how people travel, what they purchase and what they consume—can also influence the country’s import dependence.

The seven appeals effectively turn Atmanirbhar Bharat from an economic slogan into a household-level challenge: spend thoughtfully, reduce avoidable imports and direct more money towards India’s own economy.