Marking National Handloom Day, the Ministry of Textiles unveiled a sustainability-driven exhibition and an ESG taskforce aimed at advancing circularity in fashion. The Weave the Future showcase highlights regenerative handloom traditions, indigenous cotton, and artisan-led innovations shaping the future of textiles. Marking National Handloom Day, the Crafts Museum in New Delhi came alive with vibrant colours, intricate textures, and stories of resilience at Weave the Future – Regenerative Edition. This year’s exhibition, inaugurated by Pabitra Margherita, Minister of State for Textiles, celebrates handlooms not just as cultural heritage, but as powerful tools for sustainability, circularity, and climate-conscious innovation. The second edition of the event shifts the focus from last year’s theme of upcycling to championing traditional, regenerative alternatives. It honours the wisdom embedded in India’s textile heritage — knowledge rooted in land, seasons, and communities. Bringing together 30 participating brands and initiatives, the exhibition highlights a new wave of textile artisans, weavers, designers, and enablers committed to redefining the future of fashion. From installations on climate-conscious weaving to demonstrations of digital tools for artisan marketing, Weave the Future is a meeting ground for heritage and innovation. The displayed works range from heritage weaves like khadi, chanderi, and paithani, to contemporary interpretations that blend old-world craftsmanship with new-age sustainability. In India, the handloom sector employs over 35 lakh people, more than 70% of whom are women. Beyond its economic contribution, the sector plays a critical role in women’s empowerment, sustainable livelihoods, and eco-friendly production processes. By avoiding the heavy industrial machinery and resource-intensive processes of mass textile manufacturing, handlooms naturally align with low-carbon, minimal-waste principles. Government’s ESG Push in Textiles Speaking in the Rajya Sabha, Minister Pabitra Margherita noted that the Ministry of Textiles has constituted an Environmental, Social, and Governance (ESG) taskforce — a multi-stakeholder platform aimed at identifying “hotspots” in the textile value chain. Its mandate includes engaging with relevant stakeholders to introduce interventions that can minimise negative environmental and social impacts. Given the significant environmental footprint of the global textile industry — from water pollution caused by dyeing to excessive energy consumption and post-consumer waste — India’s push for an ESG framework signals a proactive approach. This aligns with the global trend where sustainability metrics are becoming a decisive factor for international buyers and fashion houses. Handlooms and other regenerative textile practices offer an inherent advantage in the sustainability debate. They typically rely on locally sourced natural fibres, use less water, and avoid synthetic dyes laden with harmful chemicals. Many artisan-led enterprises also adopt circular economy principles — where textile waste is repurposed or reintegrated into new creations, reducing landfill burden. By embracing both tradition and innovation, regenerative textiles not only cater to conscious consumers but also strengthen India’s soft power in global trade, offering a unique value proposition rooted in culture and sustainability. Pathways to reduce the environmental impact of India’s textile manufacturing While handlooms represent a low-impact, heritage-driven model, much of India’s textile manufacturing still operates within resource-intensive industrial frameworks. To minimise environmental harm and position itself as a global leader in sustainable textiles, India could focus on the following areas: 1. Transition to Eco-Friendly Dyes and ProcessesChemical-heavy dyeing is one of the largest polluters in textile production. Expanding the use of natural dyes, low-impact chemical dyes, and waterless dyeing technologies can drastically cut water contamination and reduce toxicity in production hubs. 2. Energy-Efficient Manufacturing UnitsEncouraging factories to adopt renewable energy sources, install energy-efficient machinery, and utilise heat recovery systems can lower the sector’s carbon footprint. Policy incentives such as tax breaks or subsidies for green retrofits could accelerate adoption. 3. Waste Reduction and Circular Economy PracticesImplementing robust systems for recycling post-industrial waste (scraps, defective pieces) and post-consumer textile waste can help close the loop. India could also explore industrial symbiosis, where waste from one process becomes raw material for another. 4. Water Conservation TechnologiesGiven that textile manufacturing is a major consumer of fresh water, promoting zero-liquid discharge systems, water recycling, and rainwater harvesting in manufacturing clusters could significantly ease pressure on local water resources. 5. Digital Supply Chain TrackingAdopting digital tools like blockchain-based traceability systems can ensure supply chain transparency, making it easier to monitor sustainability claims, track environmental performance, and build trust with eco-conscious buyers. 6. Skill Development for Green JobsTraining workers and artisans in sustainable techniques — from organic fibre processing to energy-efficient production methods — can ensure a just transition, where livelihoods are preserved while practices evolve. 7. Scaling Regenerative and Handloom PracticesWhile handlooms cater to niche markets, their principles can inspire scalable, semi-mechanised systems that retain low-impact benefits while meeting larger market demands. Public–private partnerships could help in modernising without industrialising entirely. The Weave the Future – Regenerative Edition is more than an exhibition — it is a vision board for what India’s textile industry can become. By combining centuries-old artisanal wisdom with cutting-edge sustainability interventions, India can position itself as the global leader in regenerative fashion. As consumer awareness grows and sustainability becomes a commercial necessity rather than a niche choice, initiatives like this not only celebrate heritage but also chart a viable path towards an environmentally responsible textile economy — one that is as rich in culture as it is in climate consciousness.
IIT Delhi innovates denim recycling for sustainable fashion
IIT Delhi researchers have developed a process to recycle denim waste into high-quality knitted garments without losing comfort or durability. By optimising fibre recovery and using seamless whole-garment technology, the method can incorporate up to 50% recycled yarn with no compromise in quality. Image Source: Freepik In a major step towards sustainable fashion, researchers at IIT Delhi have developed a technique to recycle denim waste into high-quality knitted garments while maintaining comfort and durability. With India producing nearly 3.9 million tonnes of post-consumer textile waste annually, most of which ends up in landfills, this innovation addresses one of the fashion industry’s most pressing environmental challenges. The research, led by professor Abhijit Majumdar and professor B S Butola from the Department of Textile and Fibre Engineering, tackles a key hurdle in textile recycling: the loss of fibre strength and length during mechanical processing, which usually results in lower-quality fabrics. By optimising the recycling process, the team minimised damage to fibre properties while converting discarded denim into yarn that retained its quality. These yarns were then used to create knitted garments using seamless whole-garment technology, with recycled fibre content ranging from 25% to 75%. The key breakthrough: up to 50% recycled yarn can be used without any noticeable difference in the texture or quality of the final product. “To reduce the roughness of recycled yarns, a softening treatment was applied to the fabric,” said Majumdar. “This ensured that the tactile feel of the garments matched that of virgin textiles.” Importantly, the process is not limited to denim. “We have demonstrated our work with denim waste, and it can be extended to any other textile waste,” he added. Beyond material innovation, the team also assessed the environmental benefits of their approach. Using Life Cycle Assessment (LCA) in the Indian context, PhD scholar Satya Karmakar gathered data from the Panipat textile recycling cluster to measure the impact. The analysis showed that recycling denim waste through this method can reduce greenhouse gas emissions, acid rain, and fossil fuel depletion by 30–40%, and ozone layer depletion by up to 60%. It also lowers dependence on virgin cotton—a crop responsible for 24% of global warming impact during cultivation due to its heavy use of pesticides, fertilisers, and water. The findings have been published in the Journal of Cleaner Production, and the team’s next goal is to explore whether textile waste can undergo multiple recycling cycles without significant loss of quality. The global textile waste problem The IIT Delhi breakthrough comes at a time when the global fashion industry faces mounting criticism for its environmental footprint. Over 100 billion garments are produced each year worldwide, with a large proportion ending up in landfills or being incinerated. According to the US Environmental Protection Agency (EPA), 17 million tonnes of textile municipal solid waste were generated in 2018 alone. The fashion industry is widely regarded as one of the most polluting sectors after oil, contributing to resource depletion, greenhouse gas emissions, and water contamination. This massive waste problem is compounded by fast fashion trends, which encourage overproduction and rapid consumption cycles. The environmental toll is severe—not just in terms of waste generation, but also in the excessive use of water, energy, and chemicals during textile manufacturing. Textile recycling: An urgent solution Textile recycling offers a practical pathway to address this challenge by diverting waste from landfills, reducing pollution, and lowering resource consumption. The process involves recovering fibre, yarn, or fabric and reprocessing these materials into new, usable products. Textile waste is generally classified into two main types: Pre-consumer waste – Manufacturing offcuts, rejected fabric rolls, and unsold stock. Post-consumer waste – Discarded garments, household textiles, and other fabric products. In recent years, many countries have introduced stricter regulations to curb textile waste, prompting companies to create products from post-consumer waste and recycled raw materials, including plastics. Academic studies show that textile reuse and recycling provide far greater environmental benefits than incineration or landfilling, making them integral to sustainable fashion. Why IIT Delhi’s innovation stands out While textile recycling is not new, a major limitation of conventional methods is the deterioration of fibre strength and length, resulting in coarse and less durable fabrics. IIT Delhi’s approach overcomes this by refining the mechanical recycling process to preserve fibre properties, making it possible to produce garments that meet the quality expectations of consumers. The seamless whole-garment technology used in the project further enhances the appeal of recycled garments by reducing seams, improving comfort, and optimising production efficiency. The softening treatment applied to the fabric ensures that the tactile feel is on par with virgin textiles—a critical factor in consumer acceptance. The scalability of this method is another advantage. Since the process is not limited to denim, it could be applied to other textile waste streams, including cotton blends, polyester fabrics, and home furnishings, potentially transforming India’s textile recycling industry. Looking ahead The IIT Delhi research marks a promising milestone, but it also raises important questions for the future of textile recycling—particularly whether fibres can be recycled multiple times without losing performance. If this challenge is addressed, the fashion industry could move significantly closer to a closed-loop system, where waste is continually reprocessed into new garments. With global attention increasingly focused on sustainability, such innovations will be critical in reshaping the fashion supply chain. By coupling advanced recycling methods with responsible production and consumption practices, the industry can move towards a more circular and less wasteful future.
CAFE minus Biogenic CO₂: Will this gap put India’s biofuel future on the back foot?
India’s biofuel revolution has moved far beyond the pilot stage — ethanol blending is cutting crude oil imports, lowering emissions, and boosting rural incomes. Automakers are investing in E20-ready engines, and policymakers see biofuels as a strategic pillar for energy security. But a critical policy gap threatens this momentum: how Corporate Average Fuel Economy (CAFE) norms account for carbon emissions in ethanol blended cars. Current rules make no distinction between fossil CO₂ and biogenic CO₂ — the latter released when ethanol, made from crops like sugarcane, is burned. Globally recognised as part of a short-term carbon cycle, biogenic CO₂ has a far smaller climate footprint than fossil CO₂. If this difference is ignored, automakers using ethanol blends risk inflated emission figures, steeper penalties, and reduced incentive to innovate. Correct accounting isn’t just fair — it’s essential to keep India’s biofuel ambitions on track and aligned with its clean energy targets. India’s biofuel economy is no longer a niche experiment — it has become a vibrant, multifaceted ecosystem that touches farmers, fuel producers, vehicle manufacturers, policymakers, and even everyday consumers at the petrol pump. From E10 to E20 and beyond, ethanol blending is helping the country reduce crude oil imports, cut emissions, and create new income streams for the rural economy. But as this sector grows, so do the responsibilities that come with it. For the biofuel industry to progress sustainably and gain global credibility, certain issues must be addressed head-on. One such critical area is adherence to Corporate Average Fuel Economy (CAFE) norms — the regulatory benchmarks that set fuel efficiency and carbon emission limits for automakers. And incidentally, the industry, which has spent years in reverse engineering its vehicles for E20, has been making a major demand in this context. Think of CAFE norms as the class report card for a carmaker’s entire fleet. Every automaker sells many different car models — some are fuel efficient, some are gas guzzlers. They don’t judge each car individually; they look at the average fuel efficiency and carbon emissions across all cars a company sells in a year. The government sets a target for that average — for example, “Your fleet must not emit more than X grams of CO₂ per kilometre on average.” This means if an automaker sells one model that burns more fuel, they need to balance it by selling others that consume less. It’s like a cricket team balancing big hitters with consistent singles scorers — the total runs matter more than each player’s score. Now to understand the issue which has caused friction between the industry and the government, we need to bring in another, seemingly technical but hugely important concept into play: biogenic CO₂. It sounds like jargon, but it’s at the heart of how we measure the real environmental impact of biofuel-powered vehicles. Whether a car is running on E10, E20, or higher blends, how we account for the CO₂ it emits — and whether we recognise its biological origins — can make the difference between fair compliance and flawed reporting. Are all forms of carbon emissions alike? Be prepared for some further confusion, because they are apparently not! When you burn petrol, the CO₂ released comes from fossil carbon — carbon that’s been locked underground for millions of years. Once it’s released, it’s an extra load on today’s atmosphere. It is new carbon being added. But with biofuels like ethanol, the CO₂ emitted when you burn them is called biogenic CO₂ because it comes from plants (like sugarcane or maize) that absorbed CO₂ from the air just months ago while growing. When that ethanol is burned, the CO₂ goes back into the air — but it’s basically part of a short-term cycle between plants and the atmosphere. So logically, over its lifecycle, biogenic CO₂ doesn’t increase atmospheric carbon in the same way fossil CO₂ does — provided the crops are grown sustainably. In short, fossil CO₂ is like taking money out of an ancient savings account and spending it now (permanent withdrawal), while biogenic CO₂ is like using money from your monthly salary (it goes out, but also comes back in regularly). This biogenic CO2 impact has been scientifically calculated and accepted globally. The Ministry of Petroleum and Natural Gas (MoPNG) tasked Indian Oil Corporation Limited (IOCL) with experimentally assessing the biogenic content in various ethanol–petrol blends. During the tests, the presence of two carbon isotopes was analysed: C14 isotope – indicative of bio-based carbon and C12 isotope – indicative of fossil-based carbon. The results aligned with the auto industry’s recommendations to the Ministry of Power (MoP). For instance, E20 was found to have a bio-based carbon component of 15%, while E25 and E30 had biogenic CO2 components of 19% and 25% respectively. Based on these findings, the Ministry of Petroleum and Natural Gas (MoPNG) has also requested the Ministry of Power, which has the Bureau of Energy Efficiency (BEE) within its ambit, to factor in biogenic CO₂ when evaluating compliance with CAFE norms. However, this matter has not yet been resolved satisfactorily. The industry has been making this demand, for ‘correct accounting of carbon emissions’, since 2022. And this becomes even more critical as the BEE plans to introduce tougher CAFÉ 3 norms (2027-23). If biogenic CO₂ from ethanol blends like E10 or E20 is ignored in CAFE calculations, automakers’ reported fleet emissions will appear higher than they truly are, making it harder to meet the mandated CO₂ limits under progressively stricter regulations. Under current rules, non-compliance can attract steep fines — ₹25,000 per car for the first km/l shortfall in fuel economy and ₹50,000 for each km/l beyond that, in addition to a base fine of Rs 10 lakh — meaning manufacturers that have actually invested in ethanol-compatible vehicles could still be penalised as if they were selling only fossil-fuel cars. This will be a serious disincentive for automakers as they plan their strategy towards higher ethanol blends and flex fuel vehicles as per the objectives of the government. In the
“Technology is no longer a cost — It’s the recipe for India’s food processing success”
India Business & Trade (IBT) sat down with Mr. Gurinder Singh, Founder & CEO of RANCE FPS LLP and the exclusive India representative for some of the world’s leading food processing machinery manufacturers. With over a decade of experience bridging global technology with India’s fast-evolving food sector, Mr. Singh shares his insights on automation, quality control, sustainability, and the untapped opportunities in post-harvest processing. In this exclusive conversation, he discusses how precision tools, AI, and smart sorting systems are transforming the Indian food processing industry—and what it takes for businesses to stay competitive in a cost-sensitive, quality-conscious market. IBT: How has the Indian food processing industry evolved over the past decade, particularly in terms of automation and quality control? Mr. Gurinder: The Indian food processing industry has come a long way in the last decade, especially when it comes to automation and quality assurance. What was once largely manual and inconsistent is now becoming increasingly digitized, streamlined, and reliable. From peeling to packaging, automation is no longer just for the big players—even mid-sized companies are adopting smart machines to reduce human error and improve throughput. On the quality front, the shift from manual inspection to real-time monitoring, data logging, and vision-based systems has been transformative. These technologies help maintain hygiene, ensure consistency, and comply with both domestic and international food safety standards. IBT: What are the most critical inefficiencies in traditional food processing lines, and how do advanced technologies like optical sorting help address them? Mr. Gurinder: One of the biggest inefficiencies in traditional processing lines is the dependence on manual sorting and quality checks. It’s time-consuming, inconsistent, and difficult to scale. That’s where optical sorting technologies make a huge difference. Companies like Raytec Vision, Key, Tomra, Optimum, et. are using high-resolution cameras, sensors, and AI algorithms to detect defects, eliminate foreign matter, and grade produce based on size, shape, and color. These machines operate continuously with high accuracy, eliminating human fatigue and error. The result? Reduced wastage, consistent quality, and higher efficiency—enabling processors to meet stringent safety standards with confidence. IBT: In a cost-sensitive sector like F&B, how do you justify investing in high-end technologies while staying price competitive? Mr. Gurinder: In a price-sensitive market like food and beverages, advanced technology should be seen as a strategic investment—not just a capital cost. Yes, the initial outlay might be higher, but the returns are tangible: less product waste, lower labor costs, faster processing, and improved product quality. One of our clients who installed a Bigtem steam peeler saw immediate improvements in yield and reduced dependency on manual labor. Another who adopted a Raytec optical sorter significantly reduced customer complaints and improved export acceptance rates. When technology leads to higher efficiency and reliability, it quickly offsets its own cost and helps maintain competitive pricing in the long run. IBT: What lessons have you learned working with large-scale operations versus building your own venture? How does the decision-making differ? Mr. Gurinder: Large-scale operations teach you the value of structure, data, and long-term planning. Decisions are often slower but deeply thought-out, with clear alignment across departments. Running your own venture is a different game. It’s fast-paced, intuitive, and you need to be hands-on. You have fewer resources but more freedom to act quickly. The key difference? In large organizations, it’s about coordination and patience. In your own business, it’s about agility, adaptability, and the courage to take risks—even with limited information. IBT: With food safety and traceability under the spotlight, how are precision tools like AI and smart sorting systems shaping compliance and consumer trust? Mr. Gurinder: Precision technologies are redefining food safety and traceability. AI-powered sorters and real-time monitoring systems identify contaminants and defects with incredible accuracy—far beyond what manual checks can do. In terms of traceability, modern machines can now log data at every stage of production. If a quality issue arises, you can pinpoint its origin instantly, which is critical for audits and recalls. This kind of transparency and reliability builds consumer trust and ensures regulatory compliance. It’s a proactive, tech-driven approach to quality control—and it’s becoming the new standard. IBT: What are the key gaps or opportunities you see in India’s food tech ecosystem, especially in post-harvest and processing stages? Mr. Gurinder: Despite growth, India still faces major gaps—especially post-harvest. Supply chains are fragmented, cold storage remains inadequate, and massive amounts of produce are wasted before reaching processors. That presents real opportunities. Modular processing units, shared infrastructure models, decentralized cold chains, and AI-based grading tools can all bring significant value. There’s also room for innovation in by-product utilization—turning waste into alternative snacks, nutraceuticals, or even compostable packaging. Startups that can deliver scalable, affordable, tech-driven solutions in this space will have a major impact. The demand is huge, and the need is urgent. IBT: How can mid-sized food processors adopt sustainability without it becoming a financial burden? Mr. Gurinder: Sustainability doesn’t need to be expensive or overwhelming. Mid-sized processors can take small, practical steps that still yield big results. Investing in energy-efficient equipment or water-saving systems—while slightly costlier upfront—leads to long-term savings. Reusing process water, optimizing heat recovery, and reducing material wastage all improve margins while being environmentally responsible. It’s about embracing traditional values—using resources wisely, minimizing waste—and applying them through modern tools and smart planning. IBT: What are some overlooked elements in setting up an efficient, modern processing line? Mr. Gurinder: People often focus on headline machines but overlook smaller, equally critical aspects. Smart layout planning, seamless integration between equipment, and built-in provisions for future expansion can dramatically improve operational efficiency. Easy waste management systems, proper drainage, and clean-in-place (CIP) setups also enhance hygiene and uptime. Don’t underestimate the importance of operator training, local spare parts availability, and routine maintenance. Even basic digital dashboards for performance tracking can flag issues early and improve line efficiency. Ultimately, thoughtful design and planning are what differentiate a good plant from a great one. IBT: Is the Indian food industry receptive to global tech and best practices? What challenges remain in terms
India leads in AI adoption as OpenAI launches GPT-5
India is fast becoming a global AI leader, with OpenAI CEO Sam Altman predicting it could soon surpass the U.S. as the company’s largest market. With 96% of Indian professionals already using AI tools at work and 94% believing AI skills are essential for career growth, the country is witnessing widespread adoption. OpenAI’s launch of GPT-5, which now supports 12+ Indian languages, reflects this strategic focus on India’s fast-growing, AI-savvy user base. Image Source: Freepik OpenAI CEO Sam Altman has expressed confidence that India could emerge as the company’s largest market globally. His remarks coincided with the launch of OpenAI’s most advanced model yet—ChatGPT-5. Currently, India ranks as OpenAI’s second-largest market after the United States, but Altman emphasized the country’s potential to take the top spot, applauding the ingenuity and scale with which Indians are embracing artificial intelligence. “India is our second-largest market in the world after the US, and it may well become our largest market. It’s incredibly fast-growing, but what users are doing with AI, what citizens of India are doing with AI, is really quite remarkable,” Altman said during a media briefing. Reiterating OpenAI’s growing commitment to the Indian market, Altman shared that the company is placing significant emphasis on adapting its offerings to meet local needs. He highlighted ongoing collaborations with domestic partners aimed at ensuring that AI tools are not only effective but also widely accessible. “We’re especially focused on bringing products to India, working with local partners to make AI work great for India and make it more affordable for people across the country. We’ve been paying a lot of attention here given the rate of growth, and I am excited to come for a visit in September,” he said. The remarks come at a time when India’s professional workforce is demonstrating rapid and widespread adoption of AI technologies. According to the 2025 Global Workplace Skills study conducted by Emeritus, Indian professionals are leading the global AI adoption curve, with 96% of them already using AI and generative AI tools at work. This figure is significantly higher than the 81% in the United States and 84% in the United Kingdom. Of the Indian professionals using these tools, 95% have reported productivity improvements. The study also found that nearly 94% of the Indian workforce believes that mastering AI skills will accelerate their career growth. This strong belief in AI’s career-transforming potential is driving not only adoption but also a shift in learning and professional development priorities. “The workforce needs to keep up with the time and evolve their approach to work with new skills, mindsets and competencies. India’s workforce is not only adapting to AI but actively harnessing it to shape the future of work,” said Ashwin Damera, CEO and cofounder of Emeritus. The survey, which captured responses from 6,000 professionals, also revealed that 90% of them view AI and generative AI as crucial for future career success. In addition, 94% consider AI expertise to be essential not just for professional growth but also for enabling transitions across industries. It highlighted four major trends in how Indian learners perceive and use AI—namely, higher AI adoption in India compared to global peers, prioritization of AI and GenAI skills, recognition of AI’s transformative impact on the workplace, and emerging concerns about AI-driven job displacement. Reflecting this sentiment, 73% of employers in India have increased their investments in employee training over the past year to keep up with the changing demands. OpenAI’s GPT-5 tailored for India’s growing needs As part of its push to serve India’s rapidly expanding AI ecosystem, OpenAI has officially launched ChatGPT-5, which the company describes as its “best model yet for coding and agentic tasks.” The new model offers developers a variety of options through three different sizes—gpt-5, gpt-5-mini, and gpt-5-nano—enabling them to balance performance, cost, and response speed. “We’re releasing GPT-5 in three sizes in the API — gpt-5, gpt-5-mini, and gpt-5-nano — to give developers more flexibility to trade off performance, cost, and latency. While GPT-5 in ChatGPT is a system of reasoning, non-reasoning, and router models, GPT-5 in the API platform is the reasoning model that powers maximum performance in ChatGPT. Notably, GPT-5 with minimal reasoning is a different model from the non-reasoning model in ChatGPT, and is better tuned for developers. The non-reasoning model used in ChatGPT is available as gpt-5-chat-latest,” OpenAI explained in a detailed blog post. Nick Turley, head of ChatGPT, highlighted that the new model offers significant enhancements in multilingual understanding, particularly in Indian languages. “GPT-5 significantly improves multilingual understanding across over 12 Indian languages, including regional languages. So that’s really exciting because as Sam mentioned, India is a priority market for us,” Turley said. The rollout of GPT-5 began on August 7 for free-tier, Plus, and Pro users. Enterprise and Education users are scheduled to receive access a week later, broadening the reach of advanced AI capabilities across various user groups. Altman’s remarks and OpenAI’s actions align with broader trends that suggest India is rapidly emerging as a central hub for AI growth—driven by tech-savvy professionals, high demand for upskilling, and proactive employer investments. With tools like GPT-5 being localized for India’s diverse linguistic landscape and a workforce eager to harness its potential, the country appears well-positioned to become not just a major AI consumer but also an influential contributor to its global evolution.
Thali costs ease in July amid falling vegetable, pulse, and broiler prices
Indian households experienced a welcome drop in home-cooked meal expenses in July 2025, with the prices of both vegetarian and non-vegetarian thalis registering a notable year-on-year decline, as per the latest Roti Rice Rate report released by credit rating agency Crisil. According to the report, the average cost of a vegetarian thali fell by 14%, while a non-vegetarian thali became 13% cheaper compared to July 2024. This decline in thali prices is primarily driven by reduced costs of essential ingredients such as vegetables, broiler meat, and pulses — core elements of a typical Indian meal. Home-cooked meals became notably more affordable for Indian households in July 2025, as both vegetarian and non-vegetarian thalis saw a significant drop in costs on a year-on-year (y-o-y) basis, according to the latest Roti Rice Rate report by credit rating agency Crisil. As per the report, the cost of a vegetarian thali dropped by 14% and that of a non-vegetarian thali by 13% in comparison to July 2024. This relief in meal costs can be largely attributed to a sharp decline in prices of vegetables, broilers, and pulses — key components of an Indian thali. Monthly trends: Tomato prices spike, veg thali hits six-month high However, while the annual trend brought good news for consumers, the monthly picture was mixed. The cost of a vegetarian thali rose 4% from June to reach ₹28.1, the highest in the past six months. The increase was driven primarily by a 27% drop in fresh tomato arrivals, leading to a sequential price spike. Tomato prices, which had declined sharply from last year, rose again month-on-month in July, impacting the overall affordability of the vegetarian meal. Additional upward pressure came from marginal increases in potato and onion prices, which rose 2% and 5%, respectively, during the month. In contrast, non-vegetarian thali costs declined 2% on a month-on-month basis, reaching ₹53.5 in July. The drop was primarily the result of a 9% fall in broiler chicken prices, influenced by weaker demand due to monsoon season and the onset of the Shravan month, during which many people abstain from consuming meat. Since broiler meat constitutes about half the cost of a non-vegetarian thali, the decline significantly contributed to easing the overall cost of the meal. Key Ingredients See Yearly Price Fall A deeper look at thali ingredients shows significant year-on-year declines in several essential components: Tomatoes fell 36% to ₹42/kg compared to July 2024. Onions and potatoes also dropped 36% and 30%, respectively. Broiler prices were down 12% year-on-year. Pulses and rice saw declines of 14% and 4%, respectively. These declines were supported by improved agricultural output and favourable weather conditions, which enhanced market supply. However, not all ingredients contributed to the easing trend. Vegetable oil prices surged 20% year-on-year, despite a reduction in basic customs duty. Similarly, liquefied petroleum gas (LPG) cylinder prices increased by 6%, adding to kitchen expenses and somewhat limiting the cost relief from other falling food items. What lies ahead: A mixed outlook According to Pushan Sharma, Director – Research at Crisil Market Intelligence and Analytics, the moderation in thali costs went against the grain of typical seasonal price increases in July, a month that usually sees vegetable prices firm up due to monsoon disruptions. He added that the trend of lower y-o-y thali prices is likely to persist in the coming months, primarily due to the high base created by last year’s steep tomato inflation. An anticipated bumper pulse harvest may further ease prices in that segment. However, Sharma cautioned that potato and onion prices are expected to remain firm, which could limit the extent of thali cost reductions. Measuring meal inflation Crisil’s Roti Rice Rate report calculates the average cost of preparing a thali at home using prevailing input prices across North, South, East, and West India. It serves as a barometer of food affordability for the average consumer, accounting for the cost of cereals, pulses, broilers, vegetables, spices, edible oil, and cooking gas. The monthly data provides a snapshot of how food inflation is affecting household budgets — especially critical for lower-income families where food accounts for a large share of expenses. As India navigates through the monsoon season and prepares for the festive period ahead, food price trends will be closely watched — both for their impact on household consumption and the broader inflation outlook.
India’s composite PMI rises to 61.1 in July, fastest since April 2024
India’s services sector saw a modest improvement in July, with the HSBC Services PMI rising to 60.5 from 60.4 in June—marking the fastest growth rate since August 2024 and staying well above the long-term average of 54.2. Growth was driven by new export orders, strong advertising, and robust demand. International demand, especially from Asia, Europe, the US, and the UAE, also surged. Finance and insurance outperformed, while real estate lagged. Despite the rise in output and new orders, job creation remained weak, and inflationary pressures increased due to higher food, freight, and labour costs. The Composite PMI, which includes manufacturing, also edged up to 61.1, pointing to a strong private sector momentum despite soft hiring and capacity constraints. India’s services sector recorded a slight improvement in July, as reflected by the HSBC India Services Business Activity Index, or services PMI, which rose to 60.5 from 60.4 in June. This indicates another strong rise in output and marks the fastest rate of growth since August 2024. HSBC India Services Business Activity Index A reading above 50 signals expansion in the sector, below 50 indicates contraction, and 50 implies no change. The July PMI score stood well above its long-term average of 54.2. Survey respondents attributed the growth to strong advertising campaigns, onboarding of new clients, and robust demand. The increase in activity during July was marked as sharp and the second-fastest in nearly a year, just behind June. Pranjul Bhandari, Chief India Economist at HSBC, said, “At 60.5, the services PMI indicated a strong growth momentum, led by a pick-up in new export orders. Future optimism rose but remained below 1H25 levels. On the price front, both input and output prices rose a tad faster than in June but this could change going forward as indicated by the recent CPI and WPI prints.” Service providers also saw a stronger boost in international demand for their offerings. Most of the overseas orders came from regions including Asia, Canada, Europe, the UAE, and the US. The rate of expansion in foreign sales was also sharp and marked the second-fastest pace over the past year, just behind May. Among the sectors, finance and insurance recorded the highest performance in terms of both new orders and business activity. In contrast, real estate and business services posted the slowest growth in these areas. Service providers remained generally optimistic about their business outlook for the year ahead. They cited improved efficiency, increased marketing efforts, advances in technology, and a growing online presence as the main factors driving their confidence. On the pricing front, input costs and output prices rose at a quicker pace than in June, attributed to rising food, freight, and labour expenses. “The rate of inflation quickened from June, though remained mild in the context of historical data,” the report said. Anecdotal evidence pointed out that the surge in output prices stemmed from elevated cost pressures combined with strong demand. Consumer services saw the highest rise in input cost inflation during July, while the fastest increase in output prices was reported by Transport, Information & Communication firms. Work backlogs also rose significantly, reaching their highest level in nearly five years. Surveyed companies linked the increase in backlogs to capacity constraints caused by growing new business volumes and pending payments from clients. In terms of employment, July witnessed the weakest rise in services sector jobs in the past 15 months. The rate of hiring was slight and aligned closely with the long-term trend. The report mentioned that fewer than 2% of firms added new staff, with most respondents noting no change from June. The HSBC India Composite PMI Output Index, which includes manufacturing, ticked up marginally from 61.0 in June to 61.1 in July, indicating a sharp pace of growth—the fastest since April 2024. Overall, July’s PMI results presented a mixed outlook for India’s private sector. While new orders and output saw accelerated growth, hiring momentum slowed, and business optimism waned. Meanwhile, inflationary pressures continued to rise. On the composite level, the rate of sales growth reached a 15-month high.
India unveils first electric mobility performance index
NITI Aayog’s inaugural India Electric Mobility Index (IEMI) ranks Delhi, Maharashtra, and Chandigarh as the top performers, assessing the states and union territories across three-core themes- transport electrification, charging infrastructure readiness, and EV research and innovation. The index aims to guide policy decisions, promote healthy competition, and support a coordinated push toward India’s electric mobility goals. Alongside the index, Aayog’s report titled “Unlocking a US$ 200 Billion Opportunity” highlights key strategies to accelerate EV adoption. With over 2 million EVs sold in 2024 and 25,000 public charging stations, India is moving steadily toward its target of 30% EV sales by 2030. Delhi, Maharashtra, and Chandigarh have emerged as the top performers in the newly launched India Electric Mobility Index (IEMI), by NITI Aayog. According to NITI Aayog, the Index (first-of-its-kind) emphasizes the need for coordinated efforts at the state level, integrated planning, and collaboration across sectors to drive India’s electric mobility goals. It is designed to help states align with national targets while addressing their specific local challenges by identifying key strengths and gaps. The objective is to promote healthy competition, recognize effective practices, and highlight areas requiring improvement. This tool is designed to assist policymakers in making data-driven decisions and implementing focused interventions where necessary. Mr BVR Subrahmanyam, CEO of NITI Aayog, stated that the index represents another key initiative by NITI Aayog to accelerate India’s transition to a decarbonised and energy-secure future. It also underscores the importance of enhanced collaboration and strategic planning among states. The Aayog in it’s report titled ‘India Electric Mobility Index 2024’, evaluates and ranks the performance of 28 states and 8 union territories on a scale of 100, based on 16 indicators grouped under three core themes: Transport Electrification Progress – capturing the extent of EV adoption. Charging Infrastructure Readiness – assessing the development of supporting EV-charging infrastructure. EV Research and Innovation – measuring supply-side R&D efforts in the EV ecosystem. According to the index, Chandigarh, Delhi, and Maharashtra lead in transport electrification. Haryana, Karnataka, Ladakh, and Himachal Pradesh rank highest in charging infrastructure readiness, while Delhi, Tamil Nadu, Maharashtra, Karnataka, Haryana, and Telangana are the frontrunners in EV research and innovation. Currently, 29 states and union territories have notified EV policies, while four others have draft policies. These policies are key drivers of localized efforts, offering targeted incentives, regulatory support, and strategies tailored to regional needs and aligned with national objectives. India’s EV sector showed significant momentum in 2024, with electric two-wheelers and cars reaching a private adoption rate of 5.3%. Over 12 lakh EVs were registered during the year. As of December 2024, the country had more than 25,000 public EV charging stations. The IEMI is not just a monitoring tool—it functions as a platform for peer learning, policy enhancement, and ecosystem strengthening. It also provides international partners and peers with key insights into India’s policy environment, investment readiness, and innovation potential. Government led initiatives like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) Scheme, the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cells, and focused efforts to localize battery production highlight India’s commitment to developing a strong and future-ready transportation ecosystem. NITI Aayog, in addition to the index, released a report titled “Unlocking a US$ 200 Billion Opportunity: Electric Vehicles in India,” which examines the current challenges in the EV sector and outlines key strategies to accelerate the shift to electric mobility. India has set an ambitious target of making 30% of all vehicle sales electric by 2030. EV sales in the country have grown rapidly—from 50,000 in 2016 to over 2 million in 2024. Globally, sales have jumped from 918,000 to nearly 19 million during the same period. While India’s EV penetration was just one-fifth of the global average in 2020, it has risen to over two-fifths by 2024. The report offers a comprehensive roadmap to drive progress—removing bottlenecks, fostering innovation, and providing practical, policy-aligned steps to scale adoption. It signals that India is on the verge of a major mobility transformation, with clear guidance to overcome challenges and accelerate growth. Conclusion The India Electric Mobility Index marks a significant step in driving coordinated, state-led efforts toward a cleaner transport future. Backed by policy support, innovation, and rising EV adoption, India is well-positioned to achieve its 2030 electric mobility goals. With clear benchmarks and strategic guidance, the country is accelerating toward a sustainable and energy-secure mobility ecosystem.
India’s advertising market crosses ₹1 lakh crore, digital takes centre stage
India’s advertising market has crossed the ₹1 lakh crore mark, with digital media now accounting for nearly 46% of total ad spend in FY25. The surge is fuelled largely by social media and short-form video content, reflecting changing consumer habits and platform preferences. Traditional media’s share continues to decline as advertisers increasingly opt for digital channels that offer sharper targeting and better cost efficiency. India’s advertising market has achieved a landmark milestone, crossing the ₹1 lakh crore mark in the last fiscal. What makes this achievement even more significant is the dominance of digital media, which now accounts for nearly 45-46% of total ad spend, up sharply from 24% in FY20. This shift underscores how both brands and consumers have transformed in their approach to media and content. Digital Advertising Outpaces Traditional Media The growth of digital advertising continues to outperform all other mediums. Digital ad spend is expected to grow by 9-11% this fiscal, a pace far ahead of traditional media channels, which are seeing stagnation or decline. In comparison, television and print—once dominant forces—have seen their combined share shrink from nearly 65% in FY20 to about 46-47% in FY25. The shift is visible across consumer-facing industries such as fast-moving consumer goods (FMCG), automobiles and e-commerce. FMCG companies now allocate 55-60% of their ad budgets to digital, up from around 30% in fiscal 2020, including influencer marketing, targeted campaigns and content collaborations. Automobile companies have increased digital ad spends to 35-40% in fiscal 2025, compared with 15-20% in fiscal 2020. For e-commerce players, digital now accounts for up to 60% of their total advertising budgets. Traditional Formats Feel the Pressure The digital boom has significantly impacted traditional advertising formats. Television ad revenues are increasingly being diverted to over-the-top (OTT) platforms, while direct-to-home (DTH) services lost over 10 million subscribers between December 2020 and 2024. Print media has also faced challenges, with stagnant circulation and advertisers shifting their budgets to digital platforms. Overall readership fell by nearly 500 basis points between FY20 and FY25. One of the biggest shifts in digital advertising has been in content formats. In FY20, search advertising dominated with a 40-42% share, while social media accounted for about 31-33%. By FY25, social media has overtaken search, climbing to 40-45%, powered primarily by short-form videos and influencer-led campaigns. YouTube’s share alone has doubled to 20-22% due to its extensive reach in both rural and urban India, coupled with affordable data plans and widespread smartphone penetration. India’s digital evolution has been central to this transformation. The number of smartphone users rose to 700 million in 2024 from 500 million in 2019. Mobile data in India remains among the cheapest globally at just $0.16 per GB, compared to a global average of $2.50. Daily screen time has jumped to over five hours from four in 2019, with OTT and social media accounting for nearly 60% of that usage. Much of this time is spent on short, engaging formats like reels and trending videos, reflecting a shift toward instant, immersive content. A Digital-First Advertising Future Digital platforms offer several advantages over traditional channels, including sharper audience targeting, cost efficiency and measurable performance metrics. As a result, brands—both established and new—are adopting digital-first advertising strategies. Even businesses traditionally reliant on television and print are strengthening their digital presence to stay relevant in a rapidly evolving landscape. While digital dominance is transforming India’s advertising ecosystem, most digital ad spends currently flow to foreign-owned platforms such as Meta (Facebook, Instagram) and Google. With India’s digital economy set to expand further, there is a growing need to develop and promote domestic digital platforms to retain value within the country and create a more self-reliant digital advertising ecosystem.
India’s strategic ascent in the semiconductor world
Semiconductors are the backbone of modern digital infrastructure, powering devices like smartphones, laptops, satellites, and electric vehicles. Recognizing their strategic importance, India launched the ₹76,000 crore India Semiconductor Mission (ISM) in 2021 to build a robust domestic ecosystem, including fabs, design units, packaging, and testing facilities. Key initiatives under ISM—such as the Design Linked Incentive (DLI) and compound semiconductor support—promote innovation, startups, and skill development. India’s chip market is expected to reach over US$ 100 billion by 2030. Strategic partnerships with global players like IBM, Micron, Lam Research, and Purdue University support R&D and workforce training. The flagship SEMICON India event serves as a global platform for collaboration and highlights India’s rising stature in the semiconductor value chain. From smartphones and smart TVs to satellites, computers and autonomous vehicles, semiconductor chips are the invisible force behind modern digital innovation. These chips, built on materials that can act as both conductors and insulators, enable everything from real-time communication to advanced data processing. Whether it is a computer processing millions of instructions per second or a satellite transmitting global signals, it all boils down to the capabilities of a tiny semiconductor chip — small enough to fit between two fingers, yet powerful enough to drive entire ecosystems. Semiconductors serve as the foundational elements of electronic devices. Their unique ability to alternate between conducting and insulating electricity makes them ideal for creating microchips that perform a wide variety of tasks. For instance, during India’s Chandrayaan-3 mission, the Vikram lander relied on AI and indigenous semiconductor-based systems to autonomously choose a safe landing site — showcasing how chips now act as decision-making units akin to a machine’s brain. Each chip comprises millions (or billions) of transistors that function similarly to brain cells, regulating electrical signals. Alongside other microscopic components such as resistors, capacitors, and intricate wiring, these transistors enable devices to store, process, and transfer data — allowing for operations such as calling, sensing, and live streaming. Significance of the semiconductor sector Semiconductors power not only consumer electronics but also vital infrastructure in healthcare, defence, telecommunications, and space. As digital transformation accelerates globally, semiconductors are no longer just a technological asset but a strategic necessity. The global chip shortage during the COVID-19 pandemic and the Ukraine-Russia war starkly revealed the world’s dependence on a fragile supply chain, disrupting the production of cars, smartphones, and other electronics. The key drivers for growth in the semiconductor sector include: Rising digitalization across industries; Increasing demand for high-speed, efficient, and compact components; Proliferation of smart devices and IoT; Growth of artificial intelligence (AI) and machine learning (ML), requiring real-time data processing at edge devices and cloud data centres. These factors have intensified the need for energy-efficient, high-performance semiconductor systems capable of managing vast and complex data flows. The global semiconductor market is expected to reach US$ 1 Trillion by 2030. Currently, the global semiconductor industry is dominated by countries like Taiwan, South Korea, Japan, China, and the United States. Taiwan alone accounts for over 60% of total global chip production — including nearly 90% of the most advanced chips. However, this geographic concentration has left global supply chains vulnerable to pandemics, natural disasters, and geopolitical tensions. To address these risks, nations such as the U.S., EU, Japan, and South Korea have launched ambitious strategies to build secure and diversified chip supply chains. India, with its skilled workforce and policy momentum, is emerging as a trusted and capable partner in this new semiconductor geography. India’s emerging footprint in the global semiconductor landscape India’s semiconductor market is expected to reach US$ 63 billion by 2026 and grow further to US$ 100+ billion by 2030 (up from US$ 38 billion in 2023; US$ 45-US$ 50 billion in 2024-2025). Key enablers of India’s semiconductor growth include: Abundant natural resources (chemicals, gases, minerals) for chip manufacturing Strong MSME base for equipment components World-class talent in AI, cloud computing, IoT, and big data In May 2025, India marked a milestone by launching two cutting-edge chip design centres in Noida and Bengaluru, focused on 3-nanometer designs — a global benchmark for next-gen computing. These centres follow earlier achievements in 7nm and 5nm chip design. The integration of Electronics System Design and Manufacturing (ESDM) into the Make in India initiative, combined with the launch of the India Semiconductor Mission (ISM) and the Semicon India Programme, has played a pivotal role in establishing a strong and resilient semiconductor ecosystem within the country. Approved in December 2021 with an outlay of ₹76,000 crore, the India Semiconductor Mission (ISM) is a strategic initiative by the Government of India aimed at making India a global hub for semiconductor design and manufacturing. The objectives of ISM include: Establish semiconductor fabrication (fab) plants Develop advanced packaging and testing facilities Support startups focused on chip design and innovation Train the next generation of skilled semiconductor engineers Attract global companies to invest in India The India Semiconductor Mission is led by the Indian government in partnership with industry associations, research institutions, and academic bodies. It functions under the supervision of the Ministry of Electronics and Information Technology (MeitY) and other key government agencies. Key schemes under ISM include: Semiconductor Fabs Scheme Display Fabs Scheme Compound Semiconductors & ATMP/OSAT Scheme Design Linked Incentive (DLI) Scheme Since the launch of the DLI Scheme in 2022, the government has committed ₹234 crore in support for chip design projects from 22 companies, with a total project outlay of ₹690 crore. These chips are intended for use in CCTV cameras, mobile networks, satellites, automobiles, smart devices, and more. The India Semiconductor Mission offers a wide array of skill development programs, including workshops, certification courses, and hands-on training, aimed at individuals looking to build expertise in the semiconductor industry. These initiatives provide practical experience, industry interaction, and mentorship to nurture skilled talent and support professional growth. Academic and research institutions play a vital role in advancing the mission. Through cutting-edge research, technology innovation, and talent development, they help strengthen the ecosystem. The mission also encourages strong industry-academia partnerships to
