India

Hindu Business Line | English | News | Jan. 23, 2026 | Regulation

The draft National Electricity Policy (NEP) 2026 aims to improve power supply quality in India by ensuring 24x7 reliable electricity with compensation for non-compliance and timely grievance resolution. The policy aligns with India's vision to become a developed nation by 2047 and supports the goal of a $30-trillion economy alongside energy independence. It emphasizes a financially viable, environmentally sustainable power sector that prioritizes consumer needs, offering choices in power supply and usage.

NEP 2026 mandates a consumer-centric framework that includes robust, technology-enabled grievance redressal systems for transparency and accountability. State Electricity Regulatory Commissions (SERCs) are tasked with specifying performance standards for licensees, which must meet or exceed the Central government's minimum criteria. Distribution licensees will publicly share service quality data, monitored down to the distribution transformer level for both urban and rural areas, with SERCs ensuring compliance and compensation for failures.

The policy highlights the importance of investments across various energy technologies based on minimizing consumer costs, rapid deployment, reducing reliance on imported fuels, and maximizing social and environmental benefits. It also proposes streamlined grievance redressal mechanisms incorporating online complaint filing and virtual hearings, along with periodic consumer satisfaction surveys conducted by State Commissions to assess service quality and responsiveness.

Hindu Business Line | English | News | Jan. 23, 2026 | UndeterminedEconomic Growth

In 2025, India experienced a rare "Goldilocks" phase characterized by moderate and resilient economic growth alongside subdued inflation, supported by stable macroeconomic fundamentals despite global volatility. The Reserve Bank of India’s cumulative 125 basis points repo rate cuts and fiscal, monetary, and regulatory policies have fostered this growth environment, leading to a prediction-defying Q2 FY26 GDP growth of 8.2 percent. Both urban and rural consumption contributed, with rural demand boosted by good monsoons and government incentives. Manufacturing output grew impressively by 9.1 percent in Q2 FY26, driven in part by the Production Linked Incentive (PLI) program, which attracted investments totaling ₹2 lakh crore and generated over 12.6 lakh jobs.

Government capital expenditure remains the primary growth driver, while private capital expenditure is gradually picking up, supported by strong corporate balance sheets, easier banking conditions, and growth in corporate bond markets, which reached $642 billion by March 2025. India’s economic trajectory is fueled by comprehensive reforms including GST rate rationalization, income tax rationalization, labor code streamlining, and policies focusing on clean energy and energy self-reliance. The Insolvency and Bankruptcy Code (IBC), implemented nine years ago, has been pivotal in resolving ₹12 lakh crore of stressed debt and reducing non-performing assets, thereby improving the ease of doing business and enhancing investment attractiveness.

The investor base expanded notably in 2025, with increased participation from younger generations, women, and households in tier-2 and tier-3 cities, reducing dependency on foreign capital. Monthly Systematic Investment Plan (SIP) flows highlight growing retail investment, which supports capital formation and wealth creation. However, foreign portfolio investors showed caution, with net outflows of around $10.4 billion in 2025, exerting pressure on the Indian rupee. Regulatory initiatives such as SEBI’s ‘India Market Access’ platform and RBI’s proposal to expand External Commercial Borrowings framework aim to improve global investor participation and access to capital.

Looking ahead to 2026, India is expected to shift from policy intent to tangible outcomes with ongoing policy easing, regulatory clarity, and FDI openings in insurance and nuclear energy sectors supporting sustained growth. The financialisation of savings and increased capital expenditure in sectors like electronics manufacturing services and defence are anticipated to drive the next investment cycle. Strengthened corporate balance sheets, rising credit demand, and improved earnings position India to leverage its structural advantages and emerge as a significant global growth engine amid ongoing global uncertainty.

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.