Ayen News

Category: Business

  • Indian Economy Projected to Sustain 7% Growth Momentum Through FY27

    NEW DELHI (February 26, 2026) — India’s real Gross Domestic Product (GDP) is forecast to grow between 6.8 percent and 7.2 percent in the 2026-27 financial year (FY27), according to the latest Economy Watch report by EY India. The projections, released on Thursday, suggest that India will maintain its trajectory as the world’s fastest-growing major economy for the fourth consecutive year, bolstered by a landmark series of bilateral trade agreements and a strengthening domestic fiscal architecture.

    Trade Breakthroughs and Medium-Term Prospects

    The report attributes the brightened economic outlook to India’s aggressive “multi-alignment” trade strategy. In early 2026, India finalised two “mega-partnerships” that have fundamentally realigned its global trade position:

    • The US-India Trade Deal: Signed on 2 February 2026, this agreement reduced “reciprocal” tariffs on Indian goods from 50 percent to approximately 18 percent.
    • The EU-India FTA: Finalised in late January 2026, the deal provides duty-free access for 99 percent of Indian exports to the European market, particularly benefiting labour-intensive sectors such as textiles and leather.

    “In the background of India’s extensive bilateral trade agreements with other major economies or economic groups, India’s medium-term prospects have brightened up,” stated D. K. Srivastava, EY India’s Chief Policy Advisor.

    Fiscal Strategy for ‘Viksit Bharat’ 2047

    To achieve the national goal of becoming a developed economy (Viksit Bharat) by 2047, the EY report emphasizes the need for a robust fiscal framework. Analysts suggest that while major structural tax reforms—such as the 2025 rationalisation of GST slabs—have already taken place, the focus must now shift toward widening the tax base.

    Key recommendations for fiscal sustainability include:

    • Enhanced Tax Compliance: Increasing the tax-GDP ratio primarily through improved enforcement and digital compliance rather than new tax hikes.
    • Expenditure Realignment: Recasting the Fiscal Responsibility and Budget Management (FRBM) architecture to prioritise high-impact capital expenditure in technology and defence.
    • Fiscal Consolidation: The report estimates that the Centre may target a fiscal deficit reduction of 40 basis points in FY27, aiming for a 4 percent target if the FY26 goal of 4.4 percent is met.

    Sectoral Performance and Salary Trends

    Complementing the GDP outlook, EY’s Future of Pay 2026 report, released earlier this week, indicates that economic normalisation is reflected in the labour market. Overall salary increments in India are projected at 9.1 percent for 2026. Global Capability Centres (GCCs) are expected to lead with 10.4 percent raises, followed by the Financial Services sector at 10 percent, highlighting the continued demand for specialised digital and AI-led skill sets.

    Sources

    • EY India Economy Watch: “Fiscal Architecture for Viksit Bharat” (February 2026)
    • Press Trust of India (PTI): “India’s GDP to grow between 6.8-7.2 pc in FY27: EY Economy Watch” (February 26, 2026)
    • EY Future of Pay 2026 Report: “India Inc. projects 9.1% salary increase” (February 23, 2026)
    • Ministry of Commerce and Industry: “Update on US and EU Trade Agreements” (February 2026)

  • SEBI Overhauls Mutual Fund Categorisation: Life Cycle Funds Introduced, Solution-Oriented Category Scrapped

    NEW DELHI (February 26, 2026) — The Securities and Exchange Board of India (SEBI) on Thursday issued a comprehensive circular revamping the classification of mutual fund schemes. The regulator has introduced “Life Cycle Funds” as a new category whilst simultaneously discontinuing “Solution-Oriented Schemes,” which previously included children’s and retirement funds. The overhaul is designed to ensure “true-to-label” positioning and to curb exaggerated return claims, aligning the industry with evolving market opportunities and investor protection standards.

    New Five-Tier Categorisation Framework

    Under the revised framework, mutual fund schemes will now be broadly classified into five primary categories. This restructuring aims to provide greater clarity and reduce portfolio duplication across fund houses.

    1. Equity Schemes: Focused on capital appreciation through stock market investments.
    2. Debt Schemes: Investing in fixed-income instruments with clearly defined duration limits.
    3. Hybrid Schemes: Combining equity and debt to balance risk and return.
    4. Life Cycle Funds: A newly introduced goal-based category.
    5. Other Schemes: Including Index Funds, Exchange Traded Funds (ETFs), and Fund of Funds (FoFs).

    Introduction of Life Cycle Funds

    The “Life Cycle Fund” is defined as an open-ended scheme with a predetermined maturity and a “glide path” strategy. These funds adjust their asset allocation—across equity, debt, gold, silver, and other permitted instruments—as they approach their maturity date.

    • Tenure: Mutual funds may launch these with a minimum tenure of five years and a maximum of 30 years (in multiples of five years).
    • Capacity: A single fund house can have a maximum of six active Life Cycle Funds at any point in time.
    • Exit Loads: To encourage financial discipline, SEBI has mandated a sliding exit load: 3% for exits within the first year, 2% within the second, and 1% within the third year.

    Discontinuation of Solution-Oriented Schemes

    The “Solution-Oriented” category, which previously housed 15 children’s funds and 29 retirement funds as of late January 2026, has been scrapped with immediate effect. Existing schemes in this category are required to halt fresh subscriptions and must be merged with similar schemes or realigned into other categories, subject to regulatory approval.

    Tightening of Portfolio Overlap and Naming Norms

    To prevent “style drift” and duplication, SEBI has introduced strict portfolio overlap limits:

    • Value vs. Contra Funds: Asset managers can offer both, but the portfolio overlap between them must not exceed 50%.
    • Thematic/Sectoral Funds: These schemes cannot have more than a 50% overlap with other equity categories (excluding large-cap funds).
    • Naming Conventions: Scheme names must be identical to their category names. SEBI has prohibited phrases that emphasise only the return aspect, ensuring names accurately reflect the mandate.

    Asset Management Companies (AMCs) have been granted six months to align their existing schemes with these new requirements, although thematic funds have a three-year window to comply with the overlap limits.

    Sources

    • SEBI Circular: “Revamped Framework for Categorization of Mutual Fund Schemes” (February 26, 2026)
    • The Economic Times: “Sebi revamps mutual fund scheme categorisation and rationalisation rules” (February 26, 2026)
    • India IPO: “Sebi’s new mutual fund framework: Life cycle funds, contra rules floated” (February 26, 2026)
    • Business World: “Sebi Tightens Mutual Fund Norms; Caps Portfolio Overlap” (February 26, 2026)

  • Kerala Partners with Central PSUs for 2,000 Crore Rupee Vizhinjam Logistics Plan

    THIRUVANANTHAPURAM (February 23, 2026) — The Kerala government on Monday formalised agreements with three central public sector undertakings (PSUs) to implement a 2,000 crore rupee logistics master plan at the Vizhinjam International Seaport. The memoranda of understanding (MoUs), executed in the presence of Chief Minister Pinarayi Vijayan, are designed to transform the deep-water transshipment port into a comprehensive economic hub. The initiative ensures that while port operations remain under a Public-Private Partnership (PPP) framework, critical backend infrastructure will be maintained under public sector oversight.

    Strategic Investment and Infrastructure Development

    The master plan involves the state-owned Vizhinjam International Seaport Limited (VISL) and three major central entities: Indian Oil Corporation Limited (IOCL), the Container Corporation of India (CONCOR), and the Central Warehousing Corporation (CWC). According to a release from the Chief Minister’s Office (CMO), this partnership aims to safeguard national maritime interests and prevent the monopolisation of cargo handling.

    The 2,000 crore rupee investment is allocated across three distinct strategic sectors:

    • Energy and Bunkering: Indian Oil Corporation Ltd will invest approximately 700 crore rupees to establish large-scale bunkering facilities. This infrastructure is intended to fuel mother ships calling at the port, positioning Vizhinjam as a primary energy hub in the Indian Ocean.
    • Multimodal Connectivity: CONCOR will commit roughly 600 crore rupees to develop rail-linked infrastructure. This includes the creation of inland container depots and container freight stations to facilitate the efficient movement of cargo across the national network.
    • Warehousing and Cold Chain: The Central Warehousing Corporation will invest about 700 crore rupees to develop a 50-acre multimodal logistics park. The facility will feature cold storage and export-oriented units, providing a critical link for the region’s agricultural and industrial exports.

    Public Sector Oversight and Economic Impact

    By integrating these central PSUs, the state government intends to guarantee fair pricing for traders and ensure that the logistics ecosystem remains competitive. The CMO noted that these projects will be fully funded by the respective PSUs, ensuring the development of world-class infrastructure without placing a financial burden on the state exchequer.

    The ceremony was attended by the Minister for Ports, V. N. Vasavan, and VISL Managing Director, Dr Divya S. Iyer, alongside senior leadership from the participating central companies. The move marks a shift from focusing exclusively on port construction to building a broader, port-led industrial ecosystem.

    Sources

    • The Hindu: “Kerala signs ₹2,000-crore public sector logistics pacts for Vizhinjam port” (February 23, 2026)
    • Business Standard: “Kerala signs MoUs with central PSUs for ₹2,000 cr Vizhinjam logistics plan” (February 23, 2026)
    • United News of India (UNI): “Kerala to unveil Rs 2,000 crore public sector logistics masterplan” (February 23, 2026)
    • Press Information Bureau (PIB): “Port Development and Inland Waterways in Kerala” (February 13, 2026)

  • Gaudium IVF Initial Public Offering Achieves Full Subscription on Second Day

    NEW DELHI (February 23, 2026) — The initial public offering (IPO) of Gaudium IVF and Women Health, a prominent provider of fertility services, was fully subscribed on its second day of share sales on Monday. According to data from the National Stock Exchange (NSE), the offering saw significant traction from retail and non-institutional investors, comfortably surpassing the total number of shares available by midday.

    Subscription Data and Investor Categories

    As of 12:30 hours, the company received bids for 28,563,948 shares against an offering of 14,620,340 shares. This indicates a subscription rate of 1.95 times the initial volume. The demand was primarily driven by smaller-scale investors, while institutional interest remained subdued during the early stages of the bidding process.

    The breakdown of the subscription by investor category is as follows:

    Investor CategorySubscription Rate
    Retail Individual Investors2.81 times
    Non-Institutional Investors2.56 times
    Qualified Institutional Buyers (QIBs)0.01 times (1%)

    Company Background and Market Context

    Gaudium IVF and Women Health operates within the rapidly expanding reproductive healthcare sector in India. The capital raised through this public listing is expected to fund the company’s expansion and the enhancement of its clinical infrastructure.

    Whilst retail and non-institutional segments showed robust appetite for the shares, the Qualified Institutional Buyers (QIB) portion typically sees increased activity towards the final day of an IPO, a common trend in the Indian capital markets.

    Sources

    • National Stock Exchange (NSE) Live IPO Data (February 23, 2026)
    • Press Trust of India (PTI) / Economic Times: “Gaudium IVF’s IPO gets fully subscribed on day 2” (February 23, 2026)

  • RBI Governor Rules Out Systemic Risk Following IDFC First Bank Fraud

    NEW DELHI (February 23, 2026) — Reserve Bank of India (RBI) Governor Sanjay Malhotra stated on Monday that the central bank is closely monitoring the 590 crore rupee fraud recently uncovered at IDFC First Bank, clarifying that the incident does not pose a “systemic issue” to the nation’s banking sector. Speaking at a press briefing following the customary post-budget address by Finance Minister Nirmala Sitharaman to the RBI Central Board, Governor Malhotra emphasized that the regulator is “watching the development” as the bank proceeds with recovery efforts and internal investigations.

    Details of the Chandigarh Branch Irregularities

    The fraud, which was publicly disclosed by IDFC First Bank on Sunday, involves unauthorized transactions at a single branch in Chandigarh. According to regulatory filings and statements from the bank, the fraudulent activity was confined to a specific set of accounts belonging to the Haryana state government.

    As noted in reports by The Economic Times and The Hindu, the discrepancy was discovered after the Haryana government requested the closure of an account and a subsequent balance transfer, only to find that the reported figures did not match the bank’s records. Preliminary internal reviews suggest the fraud was committed through collusion between certain employees and external entities using forged physical cheque transactions.

    Impact on Bank Operations and Governance

    In response to the discovery, IDFC First Bank has taken several immediate measures:

    • Personnel Suspension: Four officials suspected of involvement have been placed under suspension pending a full investigation.
    • Forensic Audit: The bank has appointed the advisory firm KPMG to conduct an independent forensic review, a process expected to take four to five weeks.
    • Legal Action: A formal police complaint has been filed, and the bank is pursuing civil and criminal action against the responsible parties.
    • Recovery Measures: IDFC First Bank has issued recall notices to other financial institutions to lien-mark funds in suspicious beneficiary accounts, as stated by Managing Director and CEO V. Vaidyanathan.

    State Government and Market Response

    Following the disclosure, the Haryana Finance Department issued an immediate directive to de-empanel both IDFC First Bank and AU Small Finance Bank for state government operations. According to a circular from the department, all state boards, corporations, and universities are required to transfer their funds and close their accounts with these lenders immediately.

    The news had a significant impact on the equity markets on Monday. Shares of IDFC First Bank fell by as much as 20 percent, their steepest decline since March 2020, resulting in a loss of approximately 14,438 crore rupees in market capitalization. Despite the market reaction, CEO V. Vaidyanathan maintained that the issue remains an isolated instance, noting that the affected deposits represent approximately 0.5 percent of the bank’s total deposit base.

    Sources

    • The Hindu: “RBI watching development around IDFC First Bank fraud, no systemic issue” (February 23, 2026)
    • The Economic Times: “RBI sees no systemic risk in Rs 590-crore fraud” (February 23, 2026)
    • Press Trust of India (PTI): “IDFC First Bank discloses Rs 590 crore fraud” (February 22, 2026)
    • Times of India: “IDFC First Bank fraud case: RBI ‘watching development’” (February 23, 2026)

  • Cottonseed Oil Cake Prices Climb as Demand for Cattle Feed Surges

    NEW DELHI (February 23, 2026) — Cottonseed oil cake futures rose by 1 percent on Monday, driven by increased market participation and a strengthening demand for cattle feed. On the National Commodity and Derivatives Exchange (NCDEX), prices for the March delivery contract settled at 3,335 rupees per quintal, representing a 33 rupee increase from previous levels.

    Market Dynamics and Open Interest

    The uptick in prices coincided with speculators creating fresh positions in the market. According to data from the NCDEX, the March contract saw an open interest of 55,850 lots. Market analysts stated that the widening of positions by participants was a direct response to a surge in domestic demand, particularly from the livestock sector.

    Cattle Feed Demand Drives Gains

    Cottonseed oil cake, a vital byproduct of the cotton ginning process, serves as a high-protein ingredient for cattle feed. Market observers noted that the current price appreciation is primarily influenced by the increased requirement for nutrient-dense feed. As noted in market reports, the rise in futures reflects a bullish sentiment among traders who anticipate sustained demand in the coming weeks.

    Sources

    • National Commodity and Derivatives Exchange (NCDEX) Market Data
    • News Agency Feed: “Cottonseed oil cake futures rise on fresh bets” (February 23, 2026)