Dear Reader, More than a week of chaos in Indian aviation has revealed how fragile the system is when it is dominated by a single airline. IndiGo canceled more than 2,000 flights after new crew duty rules came into force. These rules limit flight hours to reduce pilot fatigue. They were announced in early 2024 with a phased rollout, but IndiGo was unprepared. Its lean staffing model, once key to controlling costs, left it with too few pilots per plane even as its fleet continued to expand. When the new norms kicked in, the airline could not cope. Since IndiGo operates more than half of all domestic flights, the disruption quickly paralyzed the entire network. Other carriers did not have the capacity to pick up stranded passengers. The government eventually relaxed the rules to ease the crisis, but the episode revealed a deeper problem. India’s aviation market has become so concentrated that operational lapses at one airline can bring the entire system to a standstill. On the best of Mint’s journalism this week: Government plans bigger push for labor-intensive sectors in FY27 budget The government is preparing a stronger push for labor-intensive industries in the FY27 budget, with the aim of supporting job creation and tapping India’s demographic dividend. Officials say new and expanded schemes will focus on fiscal incentives, skills and market access, along with higher spending on health and education. The move seeks to balance capital-intensive manufacturing with sectors that generate more employment and help build a stronger base of mid-sized enterprises. India’s informal-heavy economy and limited number of firms in the middle-income group have intensified the need for targeted support. Experts say promoting MSMEs, improving infrastructure in smaller cities and increasing productivity in low margin sectors such as textiles and auto parts are essential. IPL’s $2 billion question: Can RCB justify its valuation? United Spirits is weighing the future of its RCB ownership as rising IPL valuations collide with Diageo’s global cost pressures. The drinks major is reviewing its 100% stake in the franchise, which contributes less than 2% to revenue and sits uncomfortably in its core alco-bev portfolio. Potential buyers range from Adani Group to Serum Institute, backed by reports that Diageo could seek up to $2 billion, well above the Gujarat Titans’ recent benchmark of $860 million. The team is profitable and has enjoyed recent sporting highs, but growth is limited by broadcast-linked revenue and Virat Kohli’s impending retirement. What to expect from India’s customs reforms India is moving ahead with a major customs overhaul to simplify duties, reduce costs for businesses and strengthen its role in global supply chains. Exporters who rely heavily on imported inputs have long argued that the current structure increases their costs and slows operations due to port delays. The reform is expected to reduce basic customs duties, shrink the number of tariff sheets and introduce more transparent, technology-driven processes with minimal physical checks. Establishing tax inversion is a key priority, especially for sectors such as electronics, mobile devices, chemicals, textiles and white goods. Indian Comic Icons Get a Makeover to Win Back Gen Z India’s classic comic heroes are stepping back into the limelight with fresh storylines, modern settings and digital-first formats. Publishers are revamping icons like Chacha Chaudhary, Suppandi, Nagraj and Shikari Shambu to reconnect with Gen Z and Gen Alpha, who have been drifting towards Japanese manga. Characters now take selfies, talk about mental health and use AI, while retaining the nostalgic charm Millennials grew up with. Rising spending power helps. Fans who once bought ₹10 issues are now paying ₹200-300 for new releases and over ₹1,000 for special editions. Publishers are expanding into animation and experimenting with diverse stories that reflect how young people talk and care about today. Manga still dominates sales, supported by OTT plug-ins and fast trade deliveries, but Indian creators believe the way forward is reinvention. Sanjay Malhotra’s first year shows a governor seizing his moment Sanjay Malhotra’s first year as RBI governor was shaped by a rare window of low inflation and steady growth, and he moved quickly to capitalize on it. He delivered 125 basis points of interest rate cuts, which he saw as insurance in a world still reeling from uncertainty. Unlike his predecessor Shaktikanta Das, Malhotra allowed the rupee to weaken and embraced the “impossible trinity”, a principle that says a central bank cannot control monetary policy, capital flows and the exchange rate simultaneously. His hands-off attitude even prompted the IMF to shift India’s forex regime classification. With growth upgraded to 7.3% and inflation forecasts too low, Malhotra’s approach won plaudits, but experts say future moves will depend entirely on how quickly the macro cycle shifts. AI Bots Reshape India’s Debt Collection Business AI is quietly transforming India’s debt collection industry, replacing gut-based decisions with data, behavioral profiling and automated empathy. Startups like DPDzero, Credgenics and Gnani are helping lenders move from Excel sheets to AI-powered systems that analyze tone, payment patterns and past interactions to tailor conversations. Borrowers are now segmented into personas such as supportive, negotiating or escape, allowing algorithms to adjust scripts, timing and follow-up. Voice bots are increasingly handling early-stage crime in multiple languages, while human agents only step in for complex cases. Lenders say this hybrid model improves recovery rates and reduces losses, with AI-assisted agents collecting more while sounding more empathetic than traditional callers. Currency Explainer | Dirty air trick: How north Indian rice farmers outsmart satellites A new study by the think tank International Forum for Environment, Sustainability and Technology (iForest) suggests that north India’s air pollution story is more complicated than official data shows. Researchers found that many farmers in Punjab and Haryana light paddy stubble burning after 3 p.m., long after polar orbiting satellites make their daily pass. These satellites, which provide “active fire counts” using sensors that detect heat signatures, have indicated a 90% drop in fires since 2021. But when iForest switched to geostationary satellites, which continuously monitor the same region, it found that nearly 29,000 sq km of farmland actually burned in 2025. The findings matter because Delhi’s pollution models rely on the sharper but time-limited fire count data to estimate how much stubble burning contributes to winter smog. Big Tech’s India push Amazon is deepening its India bet as Big Tech races to build AI infrastructure in the country. The company plans to invest $35 billion in e-commerce, cloud, entertainment and devices by 2030, while expanding fast-commerce operations and speeding up deliveries in smaller cities. It comes as global rivals pour money into AI-ready data centers. Microsoft has also committed $20.5 billion this year, including a new Hyderabad facility opening in 2026 and wider sovereign cloud services. His plan also includes training 10 million more people in AI skills. Along with major moves by Google, AWS, Reliance, TCS and L&T, total AI-centric data center commitments for 2025 now stand at $42.5 billion, indicating India’s growing strategic role in global technology. New twist in Byju’s-Aakash rights issue saga The Byju’s Aakash battle has taken a sharper turn. Fresh RoC filings show that UAE businesswoman Bisy Philip subscribed to ₹16.09 crore worth of Aakash shares. This is the same right that was earlier linked to Beeaar, the Singaporean vehicle linked to Byju Raveendran. The switch marks a quiet relinquishment that probably needed approval from the Manipal-controlled AESL board. Creditors are expected to question the move. They believe this could deduct value from Aakash shares pledged for earlier loans. The dispute adds new uncertainty over control of AESL at a time when Byju’s problems continue to mount. Railways eyes three new freight corridors to boost freight speed Indian Railways is considering three new Dedicated Freight Corridors (DFCs) worth around ₹1.5 trillion to build a nationwide freight loop and deepen its reach across the eastern, southern and central regions. Detailed project reports are ready and a corridor will be selected first based on feasibility and demand. The East Coast Corridor is likely to lead, given its strong mineral flows and port connections. The plan comes as freight volumes increase and existing corridors ease congestion. But some experts question whether more DFCs are worth the cost, pointing to underutilized routes and advocating instead for faster passenger lines and better first- and last-mile links.
