India is launching a ₹5,000 crore mission to boost green steel production through concessional loans, risk guarantees, and policy incentives. Secondary steelmakers—who contribute nearly half of total output but lag in adopting modern technologies—will be at the core of this effort. Green steel, produced using renewable energy, green hydrogen, and direct reduced iron (DRI) technologies, is expected to play a pivotal role in reducing emissions from a sector that accounts for 10–12% of the country’s emissions. Green steel demand in the country is projected to surge from the current negligible levels to 179 MT by 2050, led by construction, infrastructure and automobile manufacturing. While costs and green hydrogen pricing pose challenges, procurement mandates and policy incentives can position India as a global leader in sustainable steel. Image Source: Freepik The government is formulating a national mission to provide financial assistance to both large and small steelmakers for the production of sustainable or ‘green’ steel. Estimated at around ₹5,000 crore, the scheme could be launched in the next financial year following necessary approvals. The support package will include concessional loans, risk guarantees, and other financial instruments to help steelmakers transition towards greener practices. While the scheme will primarily target secondary steel producers—who contribute nearly half of India’s total steel output—primary producers using blast furnaces will also be eligible. Empowering secondary steel producers for sustainable growth Secondary steel producers, who typically rely on scrap and sponge iron and operate electric arc or induction furnaces, are seen as crucial to India’s decarbonisation efforts. While these methods are inherently less carbon-intensive than traditional blast furnaces, adoption of modern, efficient technologies among secondary players remains below 50%, according to the Ministry of Steel. Integrating this segment into green steel production could have a transformative impact. Their scale means even modest efficiency improvements would deliver significant emission reductions. EAFs and induction furnaces also offer flexibility, making them more compatible with renewable power, green hydrogen, and biochar. Additionally, increased reliance on scrap recycling supports India’s circular economy goals and lowers dependence on imported coking coal, reinforcing both sustainability and energy security objectives. Policy objectives and technological uptake Green steel refers to steel manufactured with minimal or zero carbon emissions. In contrast to conventional processes that rely heavily on coal and coke—the key drivers of greenhouse gas emissions—green steel is manufactured using cleaner inputs such as green hydrogen, renewable power, and direct reduced iron (DRI) technologies. The government aims to encourage the adoption of better-quality raw materials, renewable energy, and alternative fuels to cut emissions in steel production. Under the National Steel Policy 2017, India set a target of reducing carbon intensity to 2.6–2.7 tonnes of CO₂ per tonne of crude steel through electric arc furnace technology by 2030. Relying on traditional production methods after 2030 may drive up costs by 4–13%. At present, about 50–60% of primary producers have shifted to modern technologies. In parallel, the ministry is preparing a broader Green Steel Mission. This initiative may include a production-linked incentive (PLI) scheme specifically for green steel, incentives to adopt renewable energy, and procurement rules requiring government bodies to source a share of their steel from sustainable producers. Growing green steel demand and associated challenges Industry demand forecasts underscore the urgency of these initiatives. According to a study by EY-Parthenon with WWF-India and CII-GBC, India’s green steel demand is currently negligible. However, by FY2030, the green steel demand is expected to reach 4.49 million tonnes, led by construction at 2.52 million tonnes, infrastructure at 1.5 million tonnes, and the automotive sector at 0.48 million tonnes. This initial growth will be driven by increasing urbanization and a shift toward sustainable building practices. By FY2035, demand is projected to climb to 24.89 million tonnes, more than doubling to 73.44 million tonnes by FY2040, fuelled by the green transition in infrastructure and automotive manufacturing. By FY2050, demand is expected to peak at 179.17 million tonnes, with construction accounting for over half of total consumption. Source: Media Reports (EY-Parthenon) For India, the shift to green steel presents a twofold opportunity. On the domestic front, mandating that at least 25% of public steel procurement come from green sources—as the government is currently considering—would establish a strong baseline demand and accelerate industry-wide adoption. Globally, as trade barriers such as the EU’s Carbon Border Adjustment Mechanism (CBAM) become more stringent, advancing green steel production will help safeguard India’s export markets and strengthen its position as a dependable supplier in the global decarbonisation transition. These measures support India’s broader decarbonisation drive and its net-zero emissions target for 2070, with the steel sector—responsible for nearly 10–12% of national emissions—emerging as a key focus area. The upcoming mission builds on earlier initiatives, including the December 2024 release of a taxonomy for green steel and a sectoral roadmap for decarbonisation. Yet, implementation remains challenging. The finance ministry has flagged concerns over the high costs involved—particularly the price of green hydrogen—and possible inflationary pressures. Consequently, the incentive framework is still under discussion between the Steel and Finance Ministries. At the same time, the government plans to require the use of green-certified steel in all central and centrally-sponsored infrastructure projects from FY 2027–28, underscoring its long-term commitment to sustainable infrastructure. For India, the world’s second-largest steel producer, advancing green steel is a strategic imperative tied to both competitiveness and climate goals. The planned ₹5,000 crore mission, could lower emissions, strengthen supply chains, and align the sector with the net-zero 2070 vision. With targeted incentives, regulatory backing, and green procurement mandates, secondary steelmakers can become the drivers of this shift, ensuring India’s steel industry not only reduces its carbon footprint but also secures long-term resilience and global market relevance. FAQs What is India’s Green Steel Mission and its funding size?India plans to launch a ₹5,000 crore Green Steel Mission in the next financial year to support both primary and secondary steelmakers in adopting low-carbon green steel technologies What financial support will be offered to steel producers?The mission will provide concessional loans, risk guarantees, and other financial tools, with a particular
GST cut on dairy: A game-changer for farmers, consumers, and industry
The government’s decision to slash GST rates on key dairy products has been hailed as a landmark reform that promises benefits across the value chain. Effective September 22, 2025, the tax cut lowers consumer prices on essentials like butter, ghee, paneer, and cheese, while boosting farmer earnings and strengthening the organised sector. Announced ahead of the festive season, the move is being celebrated as both a timely “Diwali gift” for households and a long-term catalyst for India’s dairy industry. The government’s significant cut in GST rates on dairy products, announced on September 3, 2025, has been welcomed across the board by the dairy industry. Stakeholders say the move will create a ripple effect of benefits, reaching farmers, consumers, and the organised sector alike. Effective September 22, 2025, specific items such as condensed milk, butter, ghee, other fats, and cheese will now attract a 5% GST, down from the earlier 12%. In addition, GST on paneer and select types of milk will be reduced from 5% to zero. The announcement comes just ahead of the festive season, making it not only a structural reform but also a symbolic “Diwali gift” for households across India. The reform is being positioned as a long-term win by the government and industry observers. By lowering the tax burden on everyday dairy essentials, the policy is expected to boost consumer demand, improve farmer margins, reduce adulteration, and enhance revenue collection by strengthening the organized sector. Relief for consumers, opportunity for farmers For consumers, the immediate effect will be felt in lower retail prices for key dairy items, easing household budgets at a time of rising food costs. Dairy farmers, on the other hand, are expected to benefit indirectly. Lower taxes allow processors to channel a greater share of the consumer’s rupee back to producers, ensuring better remuneration for milk and encouraging higher productivity. As Mr. Rahul Kumar Srivastava, COO, Parag Milk Foods Ltd, noted: “The government’s decision to reduce GST rates on dairy products is a bold and transformative step. It will bring direct relief to consumers through lower prices, while also ensuring that dairy farmers receive better remuneration for their milk. With reduced taxes, the benefits flow across the value chain—strengthening farmers, boosting processors, and enhancing the quality available to consumers. Importantly, this move will stimulate demand for milk, which is vital for nutrition in India, and curb adulteration by making genuine products more competitive. Overall, it is a win-win for farmers, processors, and consumers alike.” This alignment of consumer welfare with farmer empowerment represents one of the rare moments in policy where the interests of both sides of the value chain converge. Tackling adulteration and informalization One of the less-discussed but crucial aspects of the reform is its potential to curb adulteration in the dairy market. In the past, higher GST rates pushed many consumers toward the unorganised market, where products were often cheaper but lacked quality assurance and traceability. By reducing the tax burden, the government is narrowing the price gap between organised and unorganised players. This will make authentic, branded dairy products more affordable and competitive, reducing incentives for adulteration and ultimately improving food safety standards. Rural demand and GDP contribution India is the world’s largest producer and consumer of milk, with the dairy industry contributing significantly to the agricultural GDP. Analysts believe that lowering GST will stimulate rural demand by making dairy products more accessible in smaller markets and villages. Rising demand is likely to encourage farmers to increase production, while processors benefit from higher sales volumes. This cycle of higher demand, better prices for farmers, and expanded production has the potential to lift the sector’s overall contribution to the country’s GDP. More importantly, it aligns with the government’s larger objective of inclusive rural development. The organised dairy sector, which has steadily expanded its footprint over the last decade, is also expected to benefit from this reset. With lower taxes encouraging consumers to shift from unbranded to branded products, companies will have greater incentives to invest in infrastructure, technology, and innovation. Experts predict this could lead to fresh investments in feed, animal healthcare, mechanisation, and cold chain infrastructure—elements crucial for long-term growth. Strengthening linkages between dairy, livestock, and allied industries will create a more resilient ecosystem that supports both farmer livelihoods and industrial efficiency. Nutrition and long-term impact Beyond economics, the GST cut is also being seen as a measure to improve nutrition. Milk and dairy products are a key source of protein and micronutrients for millions of Indians. By making these products more affordable, the government is directly addressing nutritional gaps, particularly among lower-income households. In the long run, the measure could contribute to better health outcomes, especially for children, women, and vulnerable populations who rely heavily on milk for daily nutrition. The GST reduction on dairy products is more than just a tax reform—it is a holistic intervention that balances the interests of consumers, farmers, and industry. By addressing affordability, farmer remuneration, quality assurance, and demand generation, it positions the dairy sector as a cornerstone of India’s agricultural and rural growth story. As industry leaders and experts underline, this move has the potential to set the stage for a stronger, more formalized, and consumer-friendly dairy market. And with its timing just before the festive season, it is not just sound economics but also a strategic political gesture that will resonate with millions of households across India. FAQs What is the new GST rate on dairy products like butter, paneer, and UHT milk?Effective September 22, 2025, GST on butter, ghee, cheese, condensed milk, and other dairy spreads is reduced to 5% (from 12%). UHT milk, pre-packaged paneer, and similar dairy items are now GST-exempt (0%). How will the GST cut benefit dairy farmers and cooperatives?The reduction is expected to benefit over 100 million dairy farmers, improving margins for producers and strengthening the cooperative sector, as noted by the Ministry of Cooperation. How much can consumers save due to the GST cut on dairy items?Consumers may save around ₹42 per
Empowering SMEs through rooftop solar solutions
India’s clean energy transition is creating significant opportunities for SMEs, particularly through rooftop solar (RTS). WRI India’s study shows that cluster-based demand aggregation and financing tools like credit guarantees and subsidies can address adoption barriers. Capacity-building within clusters and the RESCO model further reduce costs and risks, making RTS viable. Meanwhile, India’s solar sector is witnessing rapid expansion, with solar module manufacturing capacity nearly doubling, from 38 GW in March 2024 to 74 GW in March 2025, within a year. Solar PV cell manufacturing capacity increased from 9 GW to 25 GW, while the launch of India’s first 2 GW ingot-wafer manufacturing facility marked a major milestone, further bolstering the country’s solar supply chain. By July 2025, the country’s solar capacity had risen to 119.02 GW. Backed by supportive policies, targeted subsidies, and global initiatives such as the International Solar Alliance (ISA) and One Sun, One World, One Grid (OSOWOG), India is firmly strengthening its position as a global renewable energy leader. Amid India’s fast-paced renewable energy transition, SMEs are increasingly seen as important stakeholders with much to gain from embracing sustainable power. The World Resources Institute (WRI) India, in a new study, highlights that rooftop solar (RTS) can help SMEs reduce power expenses substantially and mitigate capital constraints as the country advances its renewable energy transition. India currently has about 3.3 lakh registered SMEs, most of which are heavy electricity users, particularly in manufacturing and process-driven industries. The study reveals that many SME rooftops remain underutilized, presenting a major opportunity for RTS deployment. However, SMEs often lack the resources to independently assess and implement RTS. To mitigate these hurdles, the study emphasizes the importance of demand aggregation—a mechanism that consolidates RTS demand from multiple enterprises in a cluster into a single package, which is then offered to solar vendors through a competitive bidding process. This approach lowers overall system prices, improves service offerings, and makes RTS adoption more viable for small units. WRI India tested this model in the Yamunanagar Plywood Cluster of Haryana, where demand aggregation reduced RTS system prices by approximately 7%. Similar assessments were conducted across four micro, small, and medium enterprise (MSME) clusters in the state, demonstrating the replicability of this approach. Importantly, these open-source assessments can serve as valuable tools for renewable energy service companies (RESCOs), financial institutions, investors, and governments by de-risking investments and offering precise data on RTS potential in specific clusters. Barriers hindering RTS uptake in SMEs Although promising, the RTS adoption among SMEs is hampered by technical, regulatory, and financial barriers. Owners typically focus their resources on production and marketing activities, leaving little capacity to explore clean energy opportunities. Moreover, SMEs tend to pursue RTS projects independently, thereby missing out on the benefits of aggregation. Capacity-building sessions within clusters have proved effective in generating awareness and interest, but the study stresses that sustained institutional support is also necessary. The study emphasized that financing is critical for advancing this energy transition, calling for cluster-level business models supported by both public and private banks. It noted that tools such as credit guarantee funds to secure lenders, capital subsidies, and partial risk-sharing mechanisms through existing banking channels can significantly reduce risks. These measures would make rooftop solar adoption more accessible and attractive for SMEs, thereby accelerating renewable energy uptake. State and central policies will also be crucial for clean energy transition among SMEs. For instance, the study noted, the interest subsidy clause in Haryana’s renewable energy scheme proved instrumental in enabling financing for one SME under WRI’s intervention. Enhanced involvement of the Ministry of MSMEs and its state-level affiliates in promoting awareness and providing technical guidance on clean technologies could further accelerate RTS deployment. The study further highlights the potential of the RESCO model combined with demand aggregation as a sustainable strategy to scale RTS adoption without over-reliance on subsidies. Under the Renewable Energy Service Company (RESCO) model, a developer finances, builds, operates, and maintains the RTS system on a rented rooftop, while the SME purchases electricity generated at a pre-agreed tariff—usually cheaper than grid electricity. This arrangement eliminates the need for upfront investment by SMEs and reduces their financial risks, making RTS adoption more attractive. India expands solar manufacturing As of July 2025, India’s total installed solar capacity stood at 119.02 GW. This comprised 90.99 GW from ground-mounted projects, 19.88 GW from grid-connected rooftop systems, 3.06 GW from hybrid projects, and 5.09 GW from off-grid installations. These figures highlight India’s diversified approach to renewable energy expansion. This progress underscores the effectiveness of India’s policies and long-term planning under national leadership. In line with its COP26 pledge, India is moving towards its target of 500 GW of non-fossil fuel-based electricity capacity by 2030—a cornerstone of its clean energy transition and climate commitments. By July 2025, solar power capacity had increased by 4,000%, while the country’s overall renewable energy capacity reached 227 GW. India’s solar manufacturing ecosystem has also expanded rapidly. The sector now includes domestic production of solar modules, PV cells, and ingots and wafers, reducing dependence on imports and strengthening self-reliance. In just one year, solar module manufacturing capacity nearly doubled—from 38 GW in March 2024 to 74 GW in March 2025. Solar PV cell manufacturing capacity also grew sharply, from 9 GW to 25 GW. A significant milestone was the commissioning of India’s first 2 GW ingot-wafer facility, completing the solar supply chain. Government initiatives have played a pivotal role in driving this growth. Policies require that projects under schemes like the Rooftop Solar Programme, PM-KUSUM, and CPSU Scheme Phase II use domestically manufactured panels and cells. Additionally, the Basic Customs Duty (BCD) introduced in April 2022 on imported solar cells and modules has made foreign products costlier, creating a stronger market for Indian alternatives and boosting local manufacturing. To further accelerate adoption, the government has launched flagship programs including: PM Surya Ghar: Muft Bijli Yojana Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyaan (PM-KUSUM) Solar Parks Scheme Increase in Solar PV Manufacturing Capacity India is also strengthening its leadership in
From rockets to resorts: Space tourism moves into business mode
Not long ago, booking a seat to space sounded like something out of The Jetsons. Today, it’s inching closer to reality. Tourists are strapping into rockets, companies are dreaming up orbital hotels, and governments are reshaping laws to let private players join the race. India’s own Space Policy 2023—its “Space Act moment”—has thrown open the gates for startups, investors, and global partners to build alongside ISRO. What was once the playground of astronauts is slowly becoming an adventure people can imagine for themselves. Ten years ago, the idea of booking a ticket to space felt like pure fiction like the Jetsons. Today, it’s edging into reality. Billion-dollar companies are flying passengers beyond Earth, startups are experimenting with new experiences, and governments are rewriting rules to make way for private players. What was once a dream reserved for sci-fi movies—or the ultra-wealthy—is beginning to take shape as a real industry. By 2030, suborbital tourism alone could be worth US$4 billion, and the broader space tourism market may exceed US$10 billion annually. That’s no longer a futuristic daydream—it’s a business plan in motion. Today companies like Blue Origin has restarted its New Shepard launches, sending paying customers on short trips past the edge of space. Virgin Galactic has paused its early flights but is building its next-generation Delta-class spaceplanes, due in 2026. Tickets are steep between US$ 450,000–600,000—but that hasn’t stopped adventurers from signing up. At the other end of the spectrum are orbital missions. Axiom Space, in partnership with SpaceX, successfully launched the first private crew, Ax-1, to the International Space Station (ISS) in April 2022, with each of the four crew members paying approximately US$ 55 million for the mission. The Axiom-1 mission was a historic, fully private, and funded flight to the ISS, utilizing a SpaceX Crew Dragon capsule for transportation and including eight days of research and philanthropic work aboard the station. SpaceX’s Polaris Dawn mission, launched in September 2024, not 2024 successfully conducted the first-ever private spacewalk and reached an altitude of 1408 kms, marking the highest Earth orbit achieved by humans since the Apollo program. During the five-day flight, the crew also studied the effects of radiation and performed various experiments, including testing new spacesuits For those not ready to mortgage a small country, there’s Zero-G’s parabolic flights at around US$ 8,900, giving passengers a few minutes of weightlessness. Balloon-based journeys promised gentle rides to the stratosphere, but the collapse of Space Perspective in 2025 showed how brutally hard the business can be. Where is this headed? Private space stations, such as Axiom Station, Orbital Reef, and Starlab, are in development with plans to host a mix of researchers, corporate clients, and tourists in the late 2020s. These private orbital outposts are being designed to operate concurrently with the International Space Station (ISS) before its planned retirement around 2030, marking a major shift toward a commercialized low-Earth orbit (LEO) economy. At the same time, new vehicles could transform access. Virgin Galactic’s Delta planes promise more frequent flights. SpaceX’s Starship, still in testing, could slash costs by carrying far more passengers and cargo in a single trip. In the mid-term, bundled packages—astronaut training, Zero-G flights, suborbital hops—will make the whole adventure feel more immersive. Long-term? Hotels, residencies, and research hubs in orbit. India’s place in the space story The Indian Space Policy 2023 officially shifts ISRO’s focus from commercial launch operations and manufacturing to pure research, advanced missions, and expanding human space exploration. The policy creates an enabling environment for private companies to enter and participate in all aspects of the space sector. To back this up, the government opened the doors wider for foreign investment in 2024 and even transferred ISRO’s Small Satellite Launch Vehicle (SSLV) technology to Hindustan Aeronautics Ltd (HAL) in 2025. Startups like Skyroot and Agnikul are already building their own rockets, and partnerships with international space station projects don’t seem far off. As the Financial Times noted, India isn’t just a low-cost option anymore—it’s emerging as a serious commercial contender. For tourism, this means India could soon be more than just a launchpad; it could be a partner in shaping the experiences themselves. Private space tourism is still ultra-exclusive, but it’s no longer make-believe. The industry’s future hinges on lowering costs, improving safety, and flying more often. It’s about an entire ecosystem being built to make cosmic travel part of the human journey. Top 5 FAQs on space tourism 1. What types of space tourism trips are currently available?Space tourism comes in two primary forms: suborbital (short flights beyond the edge of space with a few minutes of weightlessness) and orbital (longer missions orbiting the Earth, often aboard spacecraft like the Crew Dragon or Soyuz). 2. How much does a ticket to space cost?Suborbital flights typically range from US$ 250,000 to US$ 600,000, while orbital trips to the ISS can cost tens of millions of dollars, often around US$ 55 million per person. 3. What does ‘suborbital’ versus ‘orbital’ mean?A suborbital flight briefly exits the atmosphere and returns, offering minutes of weightlessness. An orbital flight circles the Earth at high speed (about 17,500 mph) and can last from hours to weeks. 4. Is space tourism safe? What training is required?While companies emphasize safety, spaceflight remains inherently risky. Passengers typically undergo medical screening, G-force training, and simulator sessions to prepare for launch and microgravity. Risks include launch failures, radiation exposure, and harsh re-entry conditions. 5. How many people have already traveled to space as tourists?Since 2001, only a small number of individuals—both suborbital and orbital travelers—have been space tourists. Orbital tourists were rare until recent SpaceX missions, while suborbital flights are becoming more frequent, with figures still in the dozens rather than hundreds.
India’s semiconductor mission shifts focus to chip design and IP
Unveiling the next chapter of India’s semiconductor journey, PM Narendra Modi pledged to overhaul the design-linked incentive scheme to strengthen chip design and IP capabilities. With projects worth $18 billion already in motion, India is gearing up to capture a significant slice of the trillion-dollar global chip market. Prime Minister Narendra Modi on Tuesday announced that India is entering the next phase of its semiconductor mission with a sharper emphasis on chip design and intellectual property creation. Central to this transition is a planned revamp of the government’s design-linked incentive (DLI) scheme, a move aimed at strengthening India’s foothold in the trillion-dollar global semiconductor market. Revamping the DLI Scheme Launched in 2021 with an allocation of ₹1,000 crore, the DLI scheme was envisioned as a catalyst for startups to build chip designs and secure patents. However, uptake has been sluggish, with only 23 projects approved in three years. Industry experts have argued that the current structure—providing up to ₹15 crore per startup and a sales-linked incentive capped at ₹30 crore—was insufficient to attract deep-tech entrepreneurs who require higher-risk capital and long-term support. By promising a reset, Modi indicated that these shortcomings will be addressed. The revamped scheme will align with India’s broader ambition of shifting from being a global reservoir of semiconductor design talent to becoming a creator of intellectual property. “Today, India contributes 20% of the world’s semiconductor design talent,” he said, calling on small firms and startups to seize this historic opportunity. Drawing an analogy, Modi stated: “Oil is black gold, but chips are digital diamonds. Oil shaped the previous century, but the power of the 21st century is concentrated in the small chip.” He highlighted that the global semiconductor market, already worth $600 billion, is projected to exceed $1 trillion in the coming years, and India is poised to secure a meaningful share. Building a comprehensive semiconductor ecosystem The India Semiconductor Mission, approved in December 2021 with a ₹76,000 crore outlay, laid the foundation for this ambition. Of this, ₹65,000 crore was allocated to fabrication units and ₹10,000 crore to upgrade the Semi-Conductor Laboratory in Mohali. But Modi emphasized that the next phase is not confined to a single fab or project. Instead, the goal is to create a comprehensive ecosystem covering design, manufacturing, packaging, and high-tech device production. Currently, 10 semiconductor projects worth over $18 billion (₹1.5 lakh crore) are underway. “This reflects the growing global trust in India,” Modi said. He underscored the importance of shortening the journey from “file to factory” so that wafer production can commence faster. Union Electronics and IT Minister Ashwini Vaishnaw added that five domestic projects are already under construction and progressing swiftly. “The pilot line of one unit (CG Power) is completed, while two more units are expected to start production in the coming months. The foundation of this foundational industry has been laid very well,” he noted. Cutting red tape and building infrastructure The government has introduced several reforms to reduce bureaucratic hurdles. A national single-window system now enables companies to obtain both central and state clearances online. Additionally, semiconductor parks with plug-and-play facilities are being developed, ensuring easy access to land, power, ports, airports, and skilled labor. Modi said these measures are helping India move beyond its traditional role in backend operations toward becoming a full-stack semiconductor nation. He highlighted progress at design centers in Noida and Bengaluru, which are developing some of the world’s most advanced chips, capable of storing billions of transistors and powering immersive technologies. Meanwhile, test chips from global majors such as Micron Technology and Tata Electronics are already in production, with commercial manufacturing expected to begin later this year. While acknowledging that India entered the semiconductor race later than other nations, Modi expressed confidence in the country’s trajectory. “Our journey may have started late, but nothing can stop it now,” he said. “The world trusts India, the world believes in India, and the world is ready to build the semiconductor future with India.” With the revamp of the DLI scheme, the acceleration of fabrication projects, and the establishment of robust infrastructure, India is positioning itself not just as a participant but as a leader in the semiconductor revolution of the 21st century. FAQs 1. What is the revamped DLI scheme?A government initiative to boost chip design and IP creation by offering stronger support for startups and innovators. 2. Why is this important for India?It positions India to secure a share of the $1 trillion global semiconductor market. 3. What progress has been made so far?10 projects worth $18 billion are underway, with pilot production started at some units. 4. How is the government supporting companies?Through faster clearances, semiconductor parks, and plug-and-play infrastructure. 5. Why focus on chip design and IP?To move beyond talent contribution and ensure India owns and profits from semiconductor innovations.
Why some states outpace others in two-wheeler EV adoption
Electric two-wheelers are gaining traction in India, but adoption is not uniform across states. An RBI study shows that where governments provide subsidies and charging support, people are switching to EVs much faster. In contrast, states with weaker incentives are lagging, highlighting how local policies and affordability directly shape India’s clean mobility journey. India’s transition to electric mobility is at a crucial juncture. With transport contributing significantly to emissions and dependence on fossil fuels, the push for electric vehicles (EVs) has become both an environmental and economic priority. Within this shift, the two-wheeler segment is particularly important because of its scale and affordability. A recent Reserve Bank of India (RBI) analysis reveals that state-level financial incentives are playing a decisive role in shaping how quickly Indians adopt electric two-wheelers. The RBI study compared adoption patterns across 23 states and found a stark difference between those offering direct financial subsidies and those relying only on tax and registration waivers. In September 2023, states that provided only waivers saw two-wheeler EV adoption drop by almost a quarter on a quarter-to-quarter basis. Meanwhile, states that supplemented waivers with direct subsidies recorded a smaller decline of around 17%. This indicates that subsidies remain critical in cushioning the impact of reduced support at the national level, particularly after adjustments in the FAME II scheme. This finding is especially significant because the two-wheeler market in India is highly price-sensitive. For most households, affordability is the single biggest determinant of purchase decisions. Subsidies, by lowering the upfront cost, make EVs a more accessible choice for a larger pool of consumers. The study also highlights regional disparities. Southern and Western states- many of which were early to adopt EV-friendly policies -regularly record higher-than-average adoption rates. By contrast, Northern and Eastern states lag behind, revealing the uneven pace of transition across the country. This reflects not only differences in financial incentives but also in local policy implementation, infrastructure readiness, and consumer awareness. Charging infrastructure critical enabler of EV adoption Alongside subsidies, charging infrastructure has emerged as a critical enabler of adoption. The presence of reliable charging facilities boosts consumer confidence in making the switch to electric mobility. States such as Karnataka, Goa, and Maharashtra in the west and southwest, along with Delhi and Haryana in the north, are leading in terms of charging infrastructure availability. Their success underlines the importance of complementing financial incentives with visible infrastructure that reassures buyers of practicality and convenience. Some states have gone a step further by offering capital subsidies for setting up charging stations. Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, and Kerala provide between 25 and 60% of equipment costs as subsidy. Delhi has taken an even more ambitious step, providing full financial support for charging equipment. These measures ensure that infrastructure grows in tandem with demand, preventing bottlenecks that might otherwise slow adoption. While subsidies and infrastructure are central, broader dynamics also shape the EV adoption. The Institute for Energy Economics and Financial Analysis (IEEFA) estimates that each rupee invested in EVs can generate up to 21 rupees of economic value, reflecting the sector’s ability to spur innovation, jobs, and ancillary industries. At the same time, consumer studies have found that while subsidies strongly influence purchase decisions, challenges like limited model availability, concerns about vehicle safety, and patchy charging networks remain obstacles to mass adoption. National-level efforts, especially through the FAME II scheme, have also been instrumental. Since its launch in 2019, FAME II has channeled significant funding into demand incentives and charging infrastructure. Yet adoption has not been uniform, with some states failing to build the ecosystem needed to sustain growth once subsidies are reduced. For example, in Andhra Pradesh, EV penetration over the past five years has been well below the national average, illustrating how uneven implementation can limit progress. India’s EV sales nearly doubled in 2023 Despite these challenges, the momentum is undeniable. India’s EV sales nearly doubled in 2023 and are projected to rise by two-thirds in 2024, driven largely by the two-wheeler segment. However, looming policy decisions, such as a possible increase in GST on premium EVs, could disrupt this trajectory if not carefully managed. The RBI study reinforces a crucial lesson: state-level policies are as important as national schemes in shaping EV adoption. Where states combine subsidies with strong infrastructure support, adoption rates are resilient even in the face of reduced central incentives. Conversely, in regions where state-level support is weaker, progress is slower and more vulnerable to policy changes. India’s two-wheeler EV transition is a socio-economic transformation. Success depends on aligning affordability, infrastructure, and consumer awareness. State governments are proving to be powerful catalysts, with subsidies and infrastructure support directly influencing adoption rates. Going forward, a coordinated approach between the centre and the states will be essential to ensure that EV adoption is broad-based, inclusive, and sustainable. By combining national ambition with state-level execution, India can turn its two-wheeler EV revolution into a model for other emerging markets, accelerating its journey toward cleaner mobility and a greener future. FAQs on electric two-wheeler adoption in India 1. Why are electric two-wheelers more popular in some states than others? State-level incentives—like subsidies, tax waivers, and support for charging infrastructure—play a major role in driving faster EV adoption. 2. What is the current market share and growth outlook for electric two-wheelers in India? As of FY2025, two-wheelers made up close to 60% of India’s total EV market, with penetration rising from 6–7% to potentially 30–40% by 2030. 3. How much do electric two-wheelers cost compared to petrol bikes, and what are the running cost savings? Although the purchase price is relatively higher, EVs offer major cost savings—electric models can cost as little as ₹0.50/km versus ₹2–5 per km for petrol scooters. 4. What are the main challenges hindering mass adoption of electric two-wheelers? Key barriers include the high upfront cost, limited charging infrastructure in many regions, consumer skepticism regarding battery life, and uneven policy support. 5. Which states are leading in two-wheeler EV adoption and what incentives
From Paris to Seoul, beauty giants are betting on Indian spenders
India’s beauty industry is at an inflection point, transforming rapidly with a surge in premium international imports reshaping consumer habits. The country’s beauty and personal care industry, valued at US$ 21 billion in 2023, is projected to grow to US$ 34 billion by 2028. Global beauty giants like L’Oréal, Estée Lauder, Shiseido, and Amorepacific are seizing this momentum, positioning India as their next growth frontier. Fueled by social media trends and e-commerce platforms, the market is evolving into one of the world’s fastest-growing beauty hubs. Not too long ago, most of us grew up peeking into our mothers’ vanities and finding a familiar lineup of local creams, a talc with a floral puff, a kajal pencil that seemed to last forever. Our mothers and grandmothers relied on a few familiar staples, and that was enough. Beauty was simple, predictable, and almost entirely local. Today, the shelves look very different. We’re buying the same eyeshadow palettes our favourite influencers use, a gloss bomb from Sephora to keep lips plump, and even snail mucin which was once a distant dream to achieve that glass skin. The walls between “their beauty world” and “ours” have all but disappeared, with teenagers in India just as invested in multi-step routines as their K-pop idols and pop icons. This shift is more than a change in brands—it reflects how aspirations have evolved with rising incomes, international exposure, and a young, confident consumer base. India’s beauty and personal care industry, valued at US$ 21 billion in 2023, is projected to grow to US$ 34 billion by 2028, making it one of the fastest-growing beauty markets worldwide. Global beauty giants like L’Oréal, Estée Lauder, Shiseido, and Amorepacific are capitalizing on this momentum, positioning India as their next growth frontier. For these companies, India is one of the last major untapped consumer markets, offering fresh opportunities at a time when demand in developed economies is plateauing. Global trends shaping Indian beauty That blurring of boundaries has been fueled by global currents, particularly from East Asia and the US. Korean skincare has moved from niche to mainstream, with sheet masks, essences, and serums now common in Indian routines. China and the US too have become important sources of premium imports, adding to the mix of international influences shaping the market. Social media has done the heavy lifting in this transformation. A lipstick shade can leap from a K-drama close-up to Indian shopping carts in a matter of days, while Instagram reels, YouTube reviews, and TikTok hacks turn new products into household names almost overnight. E-commerce has taken care of the rest — platforms like Nykaa, Amazon, and have broken the metro monopoly, making premium beauty just as accessible in smaller cities as it is in Delhi or Mumbai. The rising appetite for premium beauty The rising appetite for premium beauty is reflected in import trends. Imports of cosmetics and skincare rose from US$ 80.9 million in FY20 to US$ 171.9 million in FY25, according to the Ministry of Commerce and Industry. Korean skincare products alone have been expanding at an annual growth rate of 63%, with import volumes quadrupling since 2020. Breaking down imports by category: Lip makeup preparations led with US$ 61.2 million, with China, Belgium, the US, South Korea, and the UAE as key suppliers. Face creams surged nearly sevenfold to US$ 53.6 million in FY25, from US$ 7.7 million in FY20, with China and South Korea as top sources. Eye makeup imports reached US$ 34.5 million, while perfume imports rose 64.2% to US$ 171.1 million in FY25. Within this broader growth, the luxury beauty segment—currently only 4% of the market holds the greatest promise. From US$ 800 million in 2023, it is projected to grow fivefold to US$ 4 billion by 2035. Industry analysts describe India as “the last bastion of growth for premium beauty,” underscoring its strategic importance for global players. India’s beauty products exports and imports value (2020-2024) Source: tradeimex.in, Figures in US$ Billion * From imports to local manufacturing As demand accelerates, many international brands are localizing production to reduce costs, improve supply chain resilience, and cater more effectively to Indian consumers. L’Oréal India now manufactures over 95% of its sold products domestically. CeraVe, a popular skincare brand, began local production in 2025 while simultaneously starting exports to 11 countries. Other brands are exploring hybrid models—importing high-value luxury products while producing mid-range items locally. This shift not only supports the government’s Make in India initiative but also signals the country’s growing role as a manufacturing hub for global cosmetics. Customization for Indian consumers International players are learning quickly that winning in India isn’t about copy-pasting global playbooks — it’s about listening to local beauty habits and weaving them into their own strategies. Product innovation: Kohl has been part of Indian makeup for generations, so when global brands launch sleek, kohl-based eyeliners, they aren’t just adding another product — they’re acknowledging a ritual that’s deeply familiar. The same goes for herbal-infused creams or glow-enhancing formulas that work in India’s heat and humidity. These touches make an international brand feel less distant, more like something that belongs on an Indian dressing table. Cultural collaborations: The Estée Lauder x Sabyasachi partnership is a perfect example. It was about blending global luxury with Indian craftsmanship, something consumers could connect with emotionally. Their investment in Forest Essentials goes even deeper — tying a global beauty powerhouse to Ayurveda-inspired luxury that already had strong cultural roots. Moves like these show respect for Indian tradition, rather than trying to overwrite it. Data-driven expansion: Then there’s the way brands are now looking beyond Delhi and Mumbai. Digital analytics help them spot beauty conversations bubbling up in places like Siliguri or Lucknow, where a new wave of premium buyers is emerging. By understanding what people in these cities are searching, watching, or adding to wishlists, brands can tailor launches that feel relevant rather than imposed. Retail partnerships: And of course, Nykaa has become the go-to gateway. For global names like NARS, it’s
Can biofuels clean up India’s hard-to-abate industries?
Steel and cement are at the heart of India’s development, but also among its biggest climate challenges. Together, they account for a significant share of global CO₂ emissions, and India, as the world’s second-largest producer of both, faces mounting pressure to clean them up. This blog looks at the current state of these industries — their heavy reliance on coal and the regulatory norms they must now comply with. It then explores how biofuels can step in: from co-firing biomass in cement kilns and biochar trials in steel furnaces, to cutting transport emissions with bio-CNG. Finally, we examine the opportunities and challenges ahead, and why biofuels could be a crucial bridge in helping India balance growth with sustainability. Steel and cement are the backbone of India’s growth story. They build highways, homes, factories, and metros — but they also come with a heavy climate cost. Together, the two industries contribute close to 15% of global CO₂ emissions. India, the world’s second-largest producer of both, churns out around 125–130 million tonnes of steel and over 400 million tonnes of cement every year. And with mega projects under the National Infrastructure Pipeline (NIP) and “Housing for All” on the horizon, demand is only set to grow. That growth, however, collides with India’s climate commitments. The country has pledged to reach net zero by 2070 and to cut the emissions intensity of GDP by 45% by 2030. For “hard-to-abate” sectors like steel and cement, decarbonisation is not just desirable — it’s unavoidable. Coal dependence and compliance pressure At present, both industries are deeply tied to fossil fuels: Cement: Kilns consume up to 100 kg of coal per tonne of cement. Most plants in India still rely on coal and petcoke, with Thermal Substitution Rates (TSR) from alternative fuels below 10% — far behind the 40%+ achieved in Europe. Steel: Over 90% of India’s steel is made via the blast furnace–basic oxygen furnace (BF-BOF) route, which depends heavily on coking coal, most of it imported. This dependence exposes companies not only to high emissions but also to volatile global fuel prices. Regulators are already tightening the screws: The Ministry of Environment, Forest and Climate Change (MoEFCC) has enforced stricter norms on NOx, SOx, and particulate matter for cement. States like Haryana and Punjab have even mandated the use of crop residues in kilns to fight stubble burning. The Ministry of Steel has floated a National Green Steel Policy, and Indian exporters face pressure from the EU’s Carbon Border Adjustment Mechanism (CBAM), which could impose hefty carbon taxes on emissions-heavy imports. Both sectors are also covered under the Perform, Achieve and Trade (PAT) scheme, which sets efficiency targets and creates a carbon trading mechanism. In short, business-as-usual is no longer viable. The role of biofuels While long-term solutions like green hydrogen and carbon capture are still maturing, biofuels present a near-term, practical option. They don’t require a complete overhaul of existing systems and can be integrated relatively quickly. In Cement: Agricultural residues (rice husk, sugarcane trash, sawdust) and Refuse-Derived Fuel (RDF) can co-fire alongside coal in kilns. Majors like Dalmia Cement and ACC have already piloted biomass co-firing. Wider adoption could push India’s TSR closer to European levels. In Steel: Trials with biochar and bio-coke are underway at Tata Steel and JSW. These could partially replace fossil coking coal in blast furnaces, cutting emissions while reducing import dependence. In Logistics: Both industries move massive volumes of raw materials and finished goods. Using bio-CNG or biodiesel trucks can reduce Scope 3 emissions, a growing part of sustainability reporting. Why biofuels make sense for India India produces over 230 million tonnes of agricultural residues every year, much of which is burned in fields, choking cities with smog. Redirecting this biomass into cement kilns, blast furnaces, and trucks delivers a triple dividend: Extra income for farmers. Lower carbon footprint for industry. Cleaner air for cities. Government support is already in place. The SATAT scheme promotes compressed biogas (CBG), and several state policies incentivize biomass use in industries. By tapping into these policies, Indian producers can cut emissions while strengthening their global competitiveness. Fragmented biomass supply chains, inconsistent quality, and higher costs compared to cheap coal are real hurdles. But these challenges are surmountable with investment in logistics, standardisation, and policy incentives. The bigger point is this: biofuels may not replace every tonne of coal, but they buy time. They provide industries with a compliance pathway today while preparing for a future where hydrogen, CCUS, and circular practices take centre stage. For exporters, especially to Europe, early adoption can mean the difference between paying carbon taxes or enjoying preferential access to markets. India’s steel and cement sectors stand at a crossroads. The world is moving toward low-carbon materials, and buyers are willing to pay a premium for them. Biofuels are not the endgame, but they are a crucial first step — a bridge technology that allows India to align growth with climate goals, keep industries competitive, and turn what are now climate problems into climate solutions. FAQs 1. Why are steel and cement considered “hard-to-abate” industries? Steel and cement require extremely high temperatures for production, which are currently met using coal and petcoke. Over 90% of India’s steel is produced through the coal-intensive BF–BOF route, while cement kilns consume up to 100 kg of coal per tonne. This reliance makes emissions reduction difficult, earning them the label “hard-to-abate.” 2. How can biofuels reduce emissions in the cement industry? Biofuels like biomass pellets, agri-residues, and Refuse-Derived Fuel (RDF) can substitute coal in cement kilns. By increasing the Thermal Substitution Rate (TSR), cement plants can significantly lower their carbon footprint. Companies like Dalmia Cement and ACC are already experimenting with rice husk, sawdust, and RDF co-firing. 3. What role can biofuels play in steel production? Biochar and bio-coke are being tested as partial substitutes for coking coal in blast furnaces. Trials by companies like Tata Steel and JSW show that biofuels could cut emissions and reduce India’s heavy import dependence
India’s industrial production growth accelerates to 4-month high of 3.5% in July
India’s industrial production rose to a four-month high of 3.5% in July, driven by a strong showing from the manufacturing sector, according to official data released on Thursday. The last time the country recorded comparable growth was in March 2025, when industrial output increased by 3.9%. In contrast, factory output, measured by the Index of Industrial Production (IIP), had grown by a sharper 5% in July 2024. India’s industrial output gained momentum in July 2025, rising to a four-month high of 3.5%, aided largely by the robust performance of the manufacturing sector. The latest figures released by the National Statistical Office (NSO) highlight a notable recovery in factory activity after months of subdued growth, offering cautious optimism for the economy amid mixed signals from other core sectors. This marks the highest level of growth since March 2025, when industrial production had climbed by 3.9%. In comparison, the growth rate in July 2024 was much stronger at 5%, reflecting the challenges faced by industries over the past year. Manufacturing Leads the Charge The standout performer in July was the manufacturing sector, which registered a growth of 5.4%, up from 4.7% in July 2024. Manufacturing accounts for the bulk of India’s industrial output, and its healthy performance underscores resilience in consumer demand as well as improved capacity utilization by companies. Experts attribute this expansion partly to sustained domestic consumption in urban areas, gradual improvements in rural demand, and continued government support through production-linked incentive (PLI) schemes. Key industries such as automobiles, pharmaceuticals, textiles, and chemicals have reported stronger outputs, aided by both domestic sales and export demand in select categories. However, the overall picture was tempered by a sharp contraction in mining output, which fell 7.2% in July 2025 compared to a healthy growth of 3.8% in the same month last year. Analysts suggest that lower coal and mineral production due to weather-related disruptions and operational bottlenecks were the main contributors to the decline. The power sector also showed weakness, expanding by only 0.6% compared to a robust 7.9% growth in July 2024. The tepid performance reflects both lower electricity demand during the monsoon season and supply-side issues, including fluctuations in coal availability and delayed capacity additions in renewable energy projects. Looking at the broader fiscal year performance, the industrial sector grew by 2.3% during April–July FY26, significantly slower than the 5.4% growth recorded during the same period in FY25. This indicates that despite the July rebound, industrial activity has yet to regain sustained momentum. Economists caution that while the manufacturing-led recovery is encouraging, the persistent weaknesses in mining and power production pose risks to maintaining a steady growth trajectory. Since these sectors are critical inputs for industrial activity, their underperformance could limit the scope of a broad-based recovery. Broader Economic Context The industrial production data comes at a time when India is navigating a complex economic landscape. On the one hand, inflationary pressures have eased somewhat, giving room for consumer demand to stabilize. On the other hand, global economic uncertainties, weak external demand, and volatile commodity prices are weighing on the outlook for exports and raw material costs. The manufacturing sector’s resilience also aligns with broader government efforts to boost domestic production, reduce import dependency, and position India as a global manufacturing hub. Initiatives such as the Make in India program and the expansion of the PLI scheme are gradually beginning to reflect in sectoral data, though challenges remain in infrastructure, logistics, and energy reliability. Outlook Going forward, analysts believe that the trajectory of industrial growth will depend heavily on three factors: Sustained manufacturing momentum – If consumer demand, both domestic and export-oriented, continues to hold, the sector could remain the key driver of industrial growth. Revival in mining and power sectors – Improving coal output, diversifying mineral production, and strengthening renewable energy capacity will be crucial for a balanced recovery. Policy and investment climate – Continued reforms, infrastructure development, and stable macroeconomic policies will help attract investments and support long-term industrial expansion. In conclusion, the industrial production growth of 3.5% in July 2025 signals a welcome rebound, largely powered by manufacturing. However, the contraction in mining and sluggish power generation highlight vulnerabilities that policymakers must address. With the right support, India has the potential to not only sustain but also accelerate industrial growth, thereby reinforcing its role as one of the world’s fastest-growing major economies.
From Kyoto to Kolkata: The untold story of Matcha’s rise in India
India may be a chai nation, but matcha is steadily making space on its menus. Once reserved for Japanese tea ceremonies, the green tea has become a global lifestyle product and young Indians are driving its entry here through cafés, online brands, and social media. In Japan, matcha is part of a ceremony. The bright green powder is whisked with a bamboo brush until it turns into a smooth, frothy drink. This ritual made matcha a symbol of respect and mindfulness in Japanese culture. Over the past two decades, matcha has moved from tea rooms in Kyoto to café counters in New York and wellness aisles in London. The global matcha market was valued at US$ 3.4 billion in 2023 and is expected to cross US$ 6 billion by 2030. No longer confined to tradition, it is now sold in lattes, smoothies, cookies, protein bars, and even skincare products turning an ancient ritual into a worldwide lifestyle trend. Unlike coffee, which gives a quick jolt of energy and often a crash, matcha delivers a slower, steadier release of caffeine which is due to the amino acid L-theanine. That’s why many young consumers see it as a “smarter coffee” and giving the bursts of energy without the jitters. Interestingly, matcha is now making waves in India which has forever been ruled by tea. For India, a nation of cutting chai at tapris, spiced masala brews at home, and steaming cups passed around office canteens, matcha is both familiar and foreign The Matcha craze: Health, aesthetics, aspiration In the 2000s, coffee chains changed how urban India drank coffee and matcha is beginning to do something similar for today’s youth. Millennials and Gen Z are driving the demand in pursuit of building a lifestyle. Part of the appeal lies in matcha’s image: clean, energising, and Insta-friendly. Its distinct green hue makes it camera-ready, and its antioxidant-rich reputation makes it a popular choice. In a world where wellness is taking over matcha is a badge. This blend of health consciousness, global exposure, and social media trends is what’s propelling the matcha wave. It’s no surprise then that the matcha tea market in India, valued at US$ 104 million in 2024, is projected to grow at a CAGR of 8.6% to reach US$ 167.8 million by 2030. Unlike chai, which is deeply local, matcha’s rise in India is powered by both cafés and clicks. Chains like Starbucks and Third Wave Coffee introduced matcha lattes as aspirational beverages the kind you try when you want to look adventurous or get a taste of International beverages. At the same time, online-first brands have been educating consumers on how to buy, whisk, and cook with it. In 2024, 41% of India’s matcha sales came from online channels, as D2C brands tapped into Instagram reels, YouTube tutorials, and influencer tie-ups to tell the “green gold” story. The offline retail story is catching up too. Modern grocery stores and organic food shops in metros now stock multiple matcha brands, often placed next to green teas and herbal infusions turning curiosity into impulse buys. In 2024, the powdered form of matcha held a 53.75% revenue share of the Indian matcha tea market in 2024, making it the largest product segment. Beyond whisked tea, it’s slipped into ice creams, cookies, protein bars, health supplements, and fusion desserts. The instant premix category is growing fastest for first time buyers designed for young urban professionals who want the benefits followed by the ceremonial high grade matcha for the regular drinkers. And in India, where taste matters as much as health, brands are experimenting with local twists — from matcha kulfi to cardamom matcha blends. Still, challenges remain. High-quality ceremonial matcha is expensive, often imported from Japan. That makes it several times costlier than regular tea, restricting it to urban elites. Taste is another hurdle. For a country raised on sweet and spiced chai, matcha’s earthy, slightly bitter flavour is unfamiliar. Brands are trying to bridge the gap with sweetened lattes, flavoured blends, and dessert-style infusions. Interestingly, there’s an untapped opportunity in domestic cultivation. With tea-growing belts in Assam, Darjeeling, and Nilgiris, India has the potential to produce its own matcha. Local production could cut costs, create a “Made in India” identity, and even open doors to exports. Will matcha replace chai? Will matcha replace chai? Probably not. But it doesn’t need to. What’s happening instead is coexistence. Chai remains comfort, routine, and nostalgia. Matcha represents aspiration, wellness, and global belonging. Over the next few years, expect three big shifts: Mass reach: affordable matcha premixes targeting tier-2 and tier-3 cities. Diversification: more matcha in nutraceuticals, beauty, and even fitness products. Localisation: Indian-grown matcha building both domestic and global credibility. As India’s youth balance heritage with modern lifestyles, matcha captures that tension perfectly, it’s global, aspirational, and just experimental enough to feel fresh. But for matcha to truly move beyond cafés and Instagram and become part of everyday life, it will need innovation. Brands will have to create formats that are easy to adopt and simple to fold into daily routines. FAQs on Matcha Tea in India 1. Why is matcha becoming popular in India? Matcha is gaining popularity in India because it combines health benefits with lifestyle appeal. Its antioxidant-rich profile, steady energy release (without coffee jitters), and Instagram-friendly aesthetic make it especially attractive to millennials and Gen Z. 2. How is matcha different from green tea and coffee? Unlike regular green tea, matcha uses whole tea leaves ground into a fine powder, making it richer in nutrients and antioxidants. Compared to coffee, matcha provides a calmer, longer-lasting energy boost thanks to the amino acid L-theanine, which balances caffeine. 3. What is the size of the matcha tea market in India? India’s matcha tea market was valued at US$ 104 million in 2024 and is expected to reach US$ 167.8 million by 2030, growing at a CAGR of 8.6%. This growth is driven by rising health awareness, café culture, and online-first brands. 4. Is matcha
