India

Intelligence for Better Decision Making

IIFL Fintech Fund Closes $55 Million Round as Investor Interest Surges in India’s Fintech Sector
Jan. 22, 2026 | Financial System

India’s fintech sector is attracting substantial capital, with investors showing particular interest in generative AI applications within financial services.

**IIFL Fintech Fund, backed by the IIFL Group, has closed its second fundraising round at Rs 500 crore (approximately $55 million), focusing on early- to growth-stage fintech startups.**
The fund secured commitments primarily from domestic family offices and high-net-worth individuals and intends to deploy capital across 20–25 portfolio companies. It will reserve 20–25 percent of its corpus for follow-on investments in the top performers from its inaugural fund. After a first close at Rs 200 crore, the vehicle has already invested in five companies—GrayQuest, Fundamento, Knight Fintech—and acquired secondary shares in Leegality.

Founded in 2021, IIFL Fintech completed its first fund at Rs 200 crore in 2022, building an initial portfolio that includes Leegality, FinBox, DataSutram, Insurance Samadhan, and TrustCheckr, which was later acquired by Truecaller.

**Fintech in India is growing rapidly as digital adoption rises, financial inclusion expands, and innovation accelerates across payments, lending, and wealth management.**
Investor interest remains robust at all stages, supported by dedicated funds such as Quona Capital and Cedar-IBSi Capital. More broadly, private equity and venture capital firms in India raised $10.97 billion by December 17, 2025, up nearly 52 percent from $7.19 billion in 2024.
Delhi-NCR Eases Air Quality Restrictions Amid Persistent Enforcement Shortfalls
Jan. 22, 2026 | Environment

Delhi and its neighbouring states have adjusted policy and infrastructure measures to address persistent air quality challenges in the Delhi-NCR region.

**On January 20, 2026, the Commission for Air Quality Management revoked Stage IV of the Graded Response Action Plan for Delhi-NCR after the region’s Air Quality Index improved slightly to 378 (“Very Poor”) and was expected to remain stable.**
Although Stage IV measures, triggered when AQI exceeds 450, were lifted, the commission confirmed that measures under Stages I (AQI 201–300), II (301–400) and III (401–450) remain mandatory to prevent further deterioration, particularly given challenging winter meteorological conditions.

**However, a review of reports from the Delhi Pollution Control Committee and the State Pollution Control Boards of Haryana and Uttar Pradesh exposed widespread enforcement failures.**
Authorities fell short on 7 percent to 99.6 percent of critical pollution control measures. Inspections at construction and demolition sites were especially deficient, with Delhi reporting an 87 percent shortfall and Haryana districts in NCR registering 99.6 percent. Mechanical road sweeping and other road dust control measures also saw inadequate implementation in both Delhi and Haryana.

**Moreover, compliance did not improve during the period when Stage IV was in force.**
On December 24, when air quality reached “Severe” or “Severe+,” some NCR states recorded 100 percent inspection shortfalls. Public grievance redressal mechanisms similarly underperformed: 68 percent to 81 percent of complaints across Delhi, Haryana and Uttar Pradesh remained unresolved. The commission warned that such enforcement lapses seriously undermine efforts to improve air quality and reiterated that GRAP provisions are legally binding at all times.

**Under the continuing Stage III restrictions, authorities require schools up to grade 5 to shift to hybrid or online learning where feasible, impose strict controls on dust-producing construction and demolition activities (including earthwork, piling, open-trench utility laying, brickwork, painting and roadworks), and regulate movement of dust-generating materials and traffic on unpaved roads.**
They have also limited use of BS-III petrol and BS-IV diesel vehicles—except for persons with disabilities—and maintained the ban on non-essential BS-IV or older diesel medium goods vehicles in Delhi. State authorities may allow 50 percent on-site staffing in offices while the remainder work remotely.

Monitored Intelligence for India - Jan. 23, 2026


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Erudite Risk takes an all risks approach to intelligence reporting. We categorize key intelligence into one of 40 different risk intelligence categories.

The goal is to provide intelligence that allows decision makers to avoid being blindsided by what they may have missed, while informing them to make better decisions as well.

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Erudite Risk also includes operations categories so you can monitor the environment for better decision making. Everything is tied together--what happens in risk affects operations and what happens in the market impacts risk profiles.

We categorize key intelligence into one of 30 different operations intelligence categories.

Different roles and functions within the organization can monitor different key issue areas. HR may monitor employment, wages, regulations, labor and management relations, etc., while P&L leaders may monitor overall developing trends.

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WEF 2026: At Davos, Union Minister Vaishnaw says India will definitely become third largest economy

The Hindu | English | News | Jan. 23, 2026 | UndeterminedEconomic Growth

Union Minister Ashwini Vaishnaw stated at the World Economic Forum in Davos on January 21, 2026, that India is set to become the world's third-largest economy in the coming years. Economist Gita Gopinath supported this projection, suggesting the milestone could be reached by 2028 or earlier. Vaishnaw highlighted four pillars driving India’s growth: public investment in physical, digital, and social infrastructure; inclusive societal growth; manufacturing and innovation; and simplification measures. He forecasted India’s growth rate at 6-8% with moderate inflation over the next five years, underpinned by strong technology platforms and inclusive policies that have lifted 250 million people out of poverty.

Both Vaishnaw and Gopinath expressed concern over the potential global impact of high debt levels in wealthy nations, particularly referencing Japan’s recent bond market turmoil. Despite such external risks, they remain confident in India's trajectory toward economic prominence. Gopinath emphasized that the main challenge lies in raising India’s per capita income and achieving long-term development goals by 2047, which will require continued reforms in land acquisition, judicial processes, labor market flexibility, and skill development.

Industrialist Sunil Bharti Mittal echoed the optimistic outlook, noting the importance of a stable and supportive business environment and the growing domestic market. He acknowledged the challenge posed by heightened global competition and the lack of a large foreign market similar to the US for China, stressing the need for India to forge new trade agreements, including with the EU and potentially the US.

Vaishnaw also addressed concerns regarding high US tariffs, emphasizing India’s economic resilience and success in diversifying export markets. He noted India has become an important value chain partner globally, enabling export growth despite protectionist measures elsewhere. Gopinath highlighted pollution as a significant economic and health challenge requiring urgent attention as part of India's developmental agenda.

"In 20 to 30 years, India could be the biggest economy in the world": David Rubenstein, Co-Founder, The Carlyle Group

The Economic Times | English | News | Jan. 23, 2026 | UndeterminedEconomic Growth

David Rubenstein, co-founder of the Carlyle Group, provided insights on the global economic outlook, US-China relations, and India’s economic future during an interview at the World Economic Forum in Davos. Despite initial concerns, President Trump’s tariff policies have not triggered the predicted recession or high inflation, with the US economy currently growing at around 3%, unemployment at 4.4%, and inflation below 3%. Rubenstein noted that while Trump’s pro-business stance generally pleases corporate America, not all policies are uniformly supported or implemented, and business leaders adapt to regulatory changes pragmatically.

Rubenstein highlighted the evolving US-China dynamic, acknowledging that despite tariff tensions, China maintains a record trade surplus through increased sales in other markets. He believes Trump and Xi Jinping will continue diplomatic engagements, but neither sees the other as their main problem. Instead, US concerns focus on Russia, Ukraine, the domestic economy, and upcoming midterm elections. The bipartisan continuation of tariffs under President Biden signals a sustained, complex US-China economic competition. Rubenstein emphasized the emergence of a bipolar economic world dominated by the US and China, but predicted that India could become the world’s largest economy within 20 to 30 years due to its young, growing population, in contrast to China’s aging demographic.

Regarding private equity, Rubenstein asserted that despite recent public market strength focused on a few mega-cap stocks, private markets have historically outperformed and remain robust and thriving, especially in India. He noted the growth and increasing competition in India’s private equity and credit markets over the past 25 years, expressing optimism about India’s economic trajectory supported by a capitalist-friendly government. Rubenstein advised Indian policymakers to foster homegrown private investment and encourage the return of Indian talent from abroad to further stimulate growth.

On investment strategy, Rubenstein recommended diversification across public equities, public credit, and private investments, with many US endowments holding 20-30% in private markets. He acknowledged higher expected returns but increased risks in emerging markets, now often termed the Global South. Carlyle balances AI investments with other sectors, recognizing AI as a transformative but still early-stage phenomenon while also identifying value in undervalued industries.

Lastly, Rubenstein addressed global geopolitical risks, expressing skepticism about an imminent Chinese takeover of Taiwan, citing lessons from Ukraine and China's prolonged peace. He emphasized the need for private equity firms to blend youthful innovation with experienced leadership to navigate future challenges. Carlyle plans to continue expanding its presence in India across sectors including credit and infrastructure, fueled by India’s large population and growth potential.

'New Delhi bent on weaponising water'

Express Tribune | English | News | Jan. 23, 2026 | Geopolitical Conflict and Disputes

The Ministry of Water Resources informed Pakistan's National Assembly that India unilaterally suspended the 1960 Indus Waters Treaty in April 2025 following a militant attack in held Kashmir. This suspension has led to a significant reduction in water flow in the Chenab River, threatening approximately 1.45 million acres of agricultural land under the Upper Chenab Canal and an additional 3.19 million acres under the Chenab Canal. The lowered water availability is expected to severely impact agriculture and livelihoods dependent on these river systems.

India has not responded to concerns raised by Pakistan and United Nations experts regarding this suspension, despite a December 16, 2026 deadline set by the UN for India to explain its actions. A UN report released in December 2025 warned that any disruption of the treaty might severely affect millions of people in Pakistan who rely on the Indus River system for drinking water, agriculture, and food security.

Hydrological data from December 2025 revealed an extraordinary reduction in the Chenab River flow, with measurements dropping well below historical minimums. Satellite imagery showed significant changes in reservoir surface area at Baglihar during this period, indicating alterations in water storage or flow. Pakistan formally sought explanations from India over this unusual water reduction, highlighting growing tensions over water-sharing and resource management under the treaty.

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