India

The Economic Times | English | News | Dec. 4, 2025 | Regulation

Market participants expect the Reserve Bank of India (RBI) to revise its macroeconomic projections in the upcoming policy review by raising its growth forecast for FY26 above 7%, up from the earlier 6.8%, and lowering the inflation estimate to around 1.8-2% from the previous 2.6%. This shift follows stronger-than-expected GDP growth in the September quarter and a sharper-than-anticipated decline in inflationary pressures, particularly due to a sustained drop in vegetable prices and recent GST cuts reducing commodity prices.

Deputy Governor Poonam Gupta highlighted the challenges of inflation forecasting in India, citing the volatile food prices and the outdated weight of food in the consumer price index. The RBI has progressively lowered its inflation forecast for FY26, from 4.2% in February to 2.6% in October, with further reductions anticipated. Economists also predict that headline CPI could dip below 1% for November and December, potentially prompting RBI to revise Q3FY26 inflation estimates downward as well.

On the growth front, demand spillover into Q3, triggered by GST rate reductions, along with improvements in credit growth, tax collections, imports, and auto sales, support a stronger growth outlook despite export and tariff-related headwinds. The RBI had previously revised its FY26 GDP estimate upward to 6.8% in October from 6.5% in August, while economists suggest overall growth could reach 7.5%, with domestic consumption offsetting weaker exports and fiscal constraints.

Livemint | English | News | Dec. 4, 2025 | Regulation

The parliamentary standing committee on finance has called for immediate and targeted reforms to enhance the efficiency of India’s Insolvency and Bankruptcy Code (IBC). The report highlights systemic issues such as delays caused by a shortage of judges, uncertainty around the finality of resolution plans, and lack of accountability among resolution professionals managing bankrupt businesses. While the IBC has improved creditor confidence and attracted investment, these challenges have limited its effectiveness.

The committee recommends expanding judicial capacity by creating more benches of the National Company Law Tribunal (NCLT), strengthening accountability mechanisms for resolution professionals through empowered creditor panels and streamlined disciplinary processes, and ensuring the finality of approved resolution plans by enacting explicit legislative amendments. It also urges the removal of procedural ambiguities through clearer rules and calls for the Ministry of Corporate Affairs to implement these reforms swiftly using the IBC Amendment Bill, 2025.

The report comes as amendments to the IBC are under review by a Lok Sabha select committee led by BJP MP Baijayant Panda, with revised legislation expected either in the ongoing winter session or the next budget session. Experts emphasize that these reforms are vital to reduce delays, litigation, and conflicting rulings, which currently undermine the insolvency process and diminish the value of assets under resolution.

The report also notes that overall creditor recovery stands at only 32.8% of admitted claims, largely due to firms entering insolvency when assets are already stressed. Additionally, statutory conflicts between the IBC and the Prevention of Money Laundering Act (PMLA) pose significant challenges, as asset attachment by the Enforcement Directorate can conflict with protections granted under the IBC resolution process.

Hindu Business Line | English | News | Dec. 4, 2025 | Regulation

Air India has suspended eight staff members following the discovery that one of its Airbus A320 aircraft operated with an expired airworthiness review certificate (ARC). The Directorate General of Civil Aviation (DGCA) launched an investigation after the airline informed the regulator that the aircraft was flown on an expired ARC for eight revenue sectors. The aircraft has been grounded pending issuance of a fresh ARC, and the concerned personnel have been immediately de-rostered.

The ARC, issued annually by Air India under delegated authority, validates an aircraft’s main Certificate of Airworthiness and requires a thorough review of maintenance and compliance standards. During the 2024 merger of Vistara with Air India, the DGCA took responsibility for the first ARC renewals of Vistara’s 70 aircraft, issuing certificates for 69. The seventieth aircraft’s ARC expired during a grounding for an engine change, after which it was released back into service incorrectly.

Air India is conducting an internal investigation to identify system deficiencies and prevent future occurrences, with all staff involved in the decision suspended pending further review. The DGCA may escalate suspensions or terminations as the probe continues, and potential financial repercussions for Air India are expected.